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Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net (Tables)

3 Months Ended

Mar. 31, 2021

Receivables [Abstract]

Schedule of Loan Portfolio

Our loan portfolio was comprised of the following at March 31, 2021 and December 31, 2020 ($ in thousands):

Loan Type						March 31, 2021						December 31, 2020
Commercial mortgage loans, net (1)						$	5,754,258					$	5,451,084
Subordinate loans and other lending assets, net						1,065,816						1,045,893
Carrying value, net						$	6,820,074					$	6,496,977

  ———————

(1)Includes $140.8 million and $136.1 million in 2021 and 2020, respectively, of contiguous financing structured as subordinate loans.

Schedule of Activity Related to Loan Investment Portfolio

Activity relating to our loan portfolio, for the three months ended March 31, 2021, was as follows ($ in thousands):

						Principal Balance						Deferred Fees/Other Items (1)						Specific CECL Allowance						Carrying Value, Net(2)
December 31, 2020						$	6,728,424					$	(18,345)					$	(175,000)					$	6,535,079
New loan fundings						417,161						—						—						417,161
Add-on loan fundings (3)						133,437						—						—						133,437
Loan repayments and sales						(232,038)						—						—						(232,038)
Gain (loss) on foreign currency translation						(17,175)						125						—						(17,050)
Deferred fees						—						(6,564)						—						(6,564)
PIK interest and amortization of fees						21,339						5,145						—						26,484
March 31, 2021						$	7,051,148					$	(19,639)					$	(175,000)					$	6,856,509
General CECL Allowance (4)																								(36,435)
Carrying value, net																								$	6,820,074

———————

(1)Other items primarily consist of purchase discounts or premiums, cost recovery interest, exit fees and deferred origination expenses.

(2)December 31, 2020 carrying value excludes General CECL Allowance

(3)Represents fundings for loans closed prior to 2021.

(4)$3.8 million of the General CECL Allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable, accrued expenses and other liabilities in our condensed consolidated balance sheet.

Schedule of Overall Statistics for the Loan Portfolio

The following table details overall statistics for our loan portfolio at the dates indicated ($ in thousands):

						March 31, 2021						December 31, 2020
Number of loans						67						67
Principal balance						$	7,051,148					$	6,728,424
Carrying value, net						$	6,820,074					$	6,496,977
Unfunded loan commitments (1)						$	1,402,474					$	1,399,989
Weighted-average cash coupon (2)						5.6		%				5.7		%
Weighted-average remaining fully-extended term (3)						2.8 years						2.8 years
Weighted-average expected term (4)						2.1 years						2.1 years

———————

(1)Unfunded loan commitments are funded to finance construction costs, tenant improvements, leasing commissions, or carrying costs. These future commitments are funded over the term of each loan, subject in certain cases to an expiration date.

(2)For floating rate loans, based on applicable benchmark rates as of the specified dates. For loans placed on non-accrual or cost recovery the interest rate used in calculating weighted-average cash coupon is 0%.

(3)Assumes all extension options are exercised.

(4)Expected term represents our estimated timing of repayments as of March 31, 2021 and December 31, 2020, respectively.

Schedule of Mortgage Loans on Real Estate

The table below details the property type of the properties securing the loans in our portfolio at the dates indicated ($ in thousands):

						March 31, 2021												December 31, 2020
Property Type						Carrying Value						% of Portfolio(1)						Carrying Value						% of Portfolio(1)
Office						$	1,803,214					26.3		%				$	1,911,145					29.2		%
Hotel						1,544,248						22.5						1,576,369						24.1
Residential-for-sale: construction						674,416						9.8						738,035						11.3
Residential-for-sale: inventory						312,063						4.6						244,803						3.7
Urban Retail						787,311						11.5						655,456						10.0
Industrial						414,480						6.0						228,918						3.5
Healthcare						370,717						5.4						369,676						5.7
Urban Predevelopment						52,480						0.8						298,909						4.6
Other						897,580						13.1						511,768						7.9
Total						$	6,856,509					100.0		%				$	6,535,079					100.0		%
General CECL Allowance (2)						(36,435)												(38,102)
Carrying value, net						$	6,820,074											$	6,496,977

———————

(1)Percentage of portfolio calculations are made prior to consideration of General CECL Allowance.

(2)$3.8 million and $3.4 million of the General CECL Allowance for 2021 and 2020, respectively, is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable, accrued expenses and other liabilities in our condensed consolidated balance sheet.

Geography

The table below details the geographic distribution of the properties securing the loans in our portfolio at the dates indicated ($ in thousands):

						March 31, 2021												December 31, 2020
Geographic Location						Carrying Value						% of Portfolio(1)						Carrying Value						% of Portfolio(1)
New York City						$	2,398,903					35.0		%				$	2,370,337					36.3		%
United Kingdom						1,531,675						22.3						1,263,264						19.3
West						624,435						9.1						749,985						11.5
Southeast						569,104						8.3						581,301						8.9

Midwest						549,469						8.0						552,537						8.5
Northeast						100,813						1.5						103,567						1.6
Other						1,082,110						15.8						914,088						13.9
Total						$	6,856,509					100.0		%				$	6,535,079					100.0		%
General CECL Allowance (2)						(36,435)												(38,102)
Carrying value, net						$	6,820,074											$	6,496,977

———————

(1)Percentage of portfolio calculations are made prior to consideration of General CECL Allowance.

(2)$3.8 million and $3.4 million of the General CECL Allowance for 2021 and 2020, respectively, is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable, accrued expenses and other liabilities in our condensed consolidated balance sheet.

Schedule of Carrying Value of Loan Portfolio Based on Internal Risk Ratings

The following tables allocate the carrying value of our loan portfolio based on our internal risk ratings and date of origination at the dates indicated ($ in thousands):

March 31, 2021
																											Year Originated
Risk Rating						Number of Loans						Total						% of Portfolio									2021						2020						2019						2018						2017						Prior
1						—						$	—					—		%							$	—					$	—					$	—					$	—					$	—					$	—
2						1						32,000						0.5		%							—						—						—						—						—						32,000
3						62						6,420,436						93.6		%							410,664						479,012						2,661,177						1,258,870						917,193						693,520
4						—						—						—		%							—						—						—						—						—						—
5						4						404,073						5.9		%							—						—						—						—						151,796						252,277
Total						67						$	6,856,509					100.0		%							$	410,664					$	479,012					$	2,661,177					$	1,258,870					$	1,068,989					$	977,797
General CECL Allowance												(36,435)
Total carrying value, net												$	6,820,074
Weighted Average Risk Rating																		3.1

March 31, 2020
																											Year Originated
Risk Rating						Number of Loans						Total						% of Portfolio									2020						2019						2018						2017						2016						Prior
1						—						$	—					—		%							$	—					$	—					$	—					$	—					$	—					$	—
2						5						130,609						2.0		%							—						—						23,990						—						36,287						70,332
3						63						5,822,078						89.7		%							423,419						2,609,209						1,490,045						779,882						62,580						456,943

4						—						—						—		%							—						—						—						—						—						—
5						7						536,204						8.3		%							—						—						31,372						126,013						117,910						260,909
Total						75						$	6,488,891					100.0		%							$	423,419					$	2,609,209					$	1,545,407					$	905,895					$	216,777					$	788,184
General CECL Allowance												(58,273)
Total carrying value, net												$	6,430,618
Weighted Average Risk Rating																		3.1

Schedule of CECL Reserves

he following schedule sets out our General CECL Allowance as of March 31, 2021 and December 31, 2020 ($ in thousands):

						March 31, 2021						December 31, 2020
Commercial mortgage loans, net						$	18,210					$	17,012
Subordinate loans and other lending assets, net						18,225						21,090
Unfunded commitments(1)						3,794						3,365
Total General CECL Allowance						$	40,229					$	41,467

 ———————

(1)The General CECL Allowance on unfunded commitments is recorded as a liability on our condensed consolidated balance sheet within accounts payable, accrued expenses and other liabilities

The following schedule illustrates the quarterly changes in CECL Allowances for the three months ended March 31, 2021 and 2020, respectively ($ in thousands):

						Specific CECL Allowance						General CECL Allowance												Total CECL Allowance						CECL Allowance as % of Amortized Cost
												Funded			Unfunded			Total												General			Total
December 31, 2020						$	175,000					$	38,102		$	3,365		$	41,467					$	216,467					0.67		%	3.23		%
Changes:
			Q1 Allowance (Reversals)			—						(1,667)			429			(1,238)						(1,238)
March 31, 2021						$	175,000					$	36,435		$	3,794		$	40,229					$	215,229					0.62		%	3.06		%

						Specific CECL Allowance(1)						General CECL Allowance												Total CECL Allowance						CECL Allowance as % of Amortized Cost
												Funded			Unfunded			Total												General			Total
December 31, 2019						$	56,981					$	—		$	—		$	—					$	56,981					—		%	—		%
Changes:
			January 1, 2020 - Adoption of CECL Standard			—						27,779			3,088			30,867						30,867
			Q1 Allowances			150,000						30,494			2,971			33,465						183,465
March 31, 2020						$	206,981					$	58,273		$	6,059		$	64,332					$	271,313					1.08		%	4.05		%

———————

(1)As of December 31, 2019, amount represents specific loan loss provisions recorded on assets before the adoption of the CECL Standard. After the

adoption of the CECL Standard on January 1, 2020, amounts represent Specific CECL Allowances.

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