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Commercial Mortgage Loans, Subordinate Loans and Other Lending Assets, Net (Tables) | 3 Months Ended
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Mar. 31, 2022
Receivables [Abstract] |
Schedule of Loan Portfolio | Our loan portfolio was comprised of the following at March 31, 2022 and December 31, 2021 ($ in thousands):
Loan Type |  | March 31, 2022 |  | December 31, 2021
Commercial mortgage loans, net(1) |  | $ | 7,586,554 |  |  | $ | 7,012,312 |
Subordinate loans and other lending assets, net |  | 763,488 |  |  | 844,948 |
Carrying value, net |  | $ | 8,350,042 |  |  | $ | 7,857,260 |
——————— (1)Includes $85.5 million and $97.8 million in 2022 and 2021, respectively, of contiguous financing structured as subordinate loans.
Schedule of Activity Related to Loan Investment Portfolio | Activity relating to our loan portfolio for the three months ended March 31, 2022 was as follows ($ in thousands):
|  | Principal Balance |  | Deferred Fees/Other Items (1) |  | Specific CECL Allowance |  | Carrying Value, Net(2)
December 31, 2021 |  | $ | 8,072,377 |  |  | $ | (36,529) |  |  | $ | (145,000) |  |  | $ | 7,890,848 |
New funding of loans |  | 1,196,111 |  |  | — |  |  | — |  |  | 1,196,111 |
Add-on loan fundings(3) |  | 145,888 |  |  | — |  |  | — |  |  | 145,888 |
Loan repayments and sales |  | (725,508) |  |  | — |  |  | — |  |  | (725,508) |
Gain (loss) on foreign currency translation |  | (101,297) |  |  | 1,036 |  |  | — |  |  | (100,261) |
Specific CECL Allowance |  | — |  |  | — |  |  | (30,000) |  |  | (30,000) |
Deferred fees and other items |  | — |  |  | (20,461) |  |  | — |  |  | (20,461) |
PIK interest and amortization of fees |  | 7,083 |  |  | 7,719 |  |  | — |  |  | 14,802 |
March 31, 2022 |  | $ | 8,594,654 |  |  | $ | (48,235) |  |  | $ | (175,000) |  |  | $ | 8,371,419 |
General CECL Allowance(4) |  |  |  |  |  |  |  | (21,377) |
Carrying value, net |  |  |  |  |  |  |  | $ | 8,350,042 |
——————— (1)Other items primarily consist of purchase discounts or premiums, cost recovery interest, exit fees, deferred origination expenses, and the activity of unconsolidated joint ventures. (2)December 31, 2021 carrying value excludes General CECL Allowance. (3)Represents fundings committed prior to 2022. (4)$3.9 million of the General CECL Allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable, accrued expenses and other liabilities in our condensed consolidated balance sheet.
Schedule of Overall Statistics for the Loan Portfolio | The following table details overall statistics for our loan portfolio at the dates indicated ($ in thousands):
|  | March 31, 2022 |  | December 31, 2021
Number of loans |  | 67 |  |  | 67 |
Principal balance |  | $ | 8,594,654 |  |  | $ | 8,072,377 |
Carrying value, net |  | $ | 8,350,042 |  |  | $ | 7,857,260 |
Unfunded loan commitments(1) |  | $ | 1,800,235 |  |  | $ | 1,357,122 |
Weighted-average cash coupon(2) |  | 4.5 | % |  | 4.5 | %
Weighted-average remaining fully-extended term(3) |  | 3.0 years |  | 2.9 years
Weighted-average expected term(4) |  | 2.0 years |  | 2.3 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 the specified dates. Excludes risk-rated 5 loans.
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, 2022 |  | December 31, 2021
Property Type |  | Carrying Value |  | % of Portfolio(1) |  | Carrying Value |  | % of Portfolio(1)
Office |  | $ | 1,980,780 |  |  | 23.7 | % |  | $ | 1,700,779 |  |  | 21.6 | %
Hotel |  | 1,949,106 |  |  | 23.3 |  |  | 1,875,439 |  |  | 23.8 |
Residential-for-sale |  | 896,714 |  |  | 10.7 |  |  | 956,617 |  |  | 12.1 |
Healthcare |  | 637,570 |  |  | 7.6 |  |  | 316,321 |  |  | 4.0 |
Retail Center |  | 508,117 |  |  | 6.1 |  |  | 414,740 |  |  | 5.3 |
Residential-for-rent |  | 470,861 |  |  | 5.6 |  |  | 477,569 |  |  | 6.1 |
Mixed Use |  | 417,967 |  |  | 5.0 |  |  | 269,839 |  |  | 3.4 |
Industrial |  | 364,953 |  |  | 4.4 |  |  | 377,068 |  |  | 4.8 |
Urban Retail |  | 358,221 |  |  | 4.3 |  |  | 711,592 |  |  | 9.0 |
Other(2) |  | 787,130 |  |  | 9.3 |  |  | 790,884 |  |  | 9.9 |
Total |  | $ | 8,371,419 |  |  | 100.0 | % |  | $ | 7,890,848 |  |  | 100.0 | %
General CECL Allowance(3) |  | (21,377) |  |  |  |  | (33,588) |  |  |
Carrying value, net |  | $ | 8,350,042 |  |  |  |  | $ | 7,857,260 |  |  |
(1)Percentage of portfolio calculations are made prior to consideration of General CECL Allowance. (2)Other property types include parking garages (3.1%), caravan parks (2.6%), multifamily development (2.1%) and urban predevelopment (1.5%) in 2022, and parking garages (3.3%), caravan parks (2.8%), multifamily development (2.2%), and urban predevelopment (1.6%) in 2021. (3)$3.9 million and $3.1 million of the General CECL Allowance for 2022 and 2021, respectively, is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable, accrued expenses and other liabilities in our condensed consolidated balance sheet. Geography The table below details the geographic distribution of the properties securing the loans in our portfolio at the dates indicated ($ in thousands):
|  | March 31, 2022 |  | December 31, 2021
Geographic Location |  | Carrying Value |  | % of Portfolio(1) |  | Carrying Value |  | % of Portfolio(1)
New York City |  | $ | 2,295,383 |  |  | 27.4 | % |  | $ | 2,000,661 |  |  | 25.4 | %
United Kingdom |  | 1,989,250 |  |  | 23.8 |  |  | 2,297,286 |  |  | 29.1 |
Other Europe(2) |  | 1,494,435 |  |  | 17.9 |  |  | 1,295,870 |  |  | 16.4 |
Southeast |  | 769,205 |  |  | 9.2 |  |  | 708,920 |  |  | 9.0 |
Midwest |  | 681,237 |  |  | 8.1 |  |  | 689,274 |  |  | 8.7 |
West |  | 341,569 |  |  | 4.1 |  |  | 356,097 |  |  | 4.5 |
Other(3) |  | 800,340 |  |  | 9.5 |  |  | 542,740 |  |  | 6.9 |
Total |  | $ | 8,371,419 |  |  | 100.0 | % |  | $ | 7,890,848 |  |  | 100.0 | %
General CECL Allowance(4) |  | (21,377) |  |  |  |  | (33,588) |  |  |
Carrying value, net |  | $ | 8,350,042 |  |  |  |  | $ | 7,857,260 |  |  |
(1)Percentage of portfolio calculations are made prior to consideration of General CECL Allowance. (2)Other Europe includes Germany (5.6%), Italy (4.3%), Spain (3.9%), Sweden (3.3%), and Ireland (0.8%) in 2022 and Germany (6.1%), Sweden (3.6%), Spain (3.3%), Italy (2.6%), and Ireland (0.8%) in 2021. (3)Other includes Northeast (5.9%), Southwest (1.9%), Mid-Atlantic (1.4%) and Other (0.3%) in 2022 and Southwest (3.5%), Northeast (1.5%), Mid-Atlantic (1.6%), and Other (0.3%) in 2021. (4)$3.9 million and $3.1 million of the General CECL Allowance for 2022 and 2021, respectively, is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable, accrued expenses and other liabilities in our condensed consolidated balance sheet.
Schedule of Carrying Value of Loan Portfolio Based on Internal Risk Ratings | The following tables allocate the carrying value of our loan portfolio based on our internal risk ratings and date of origination at the dates indicated ($ in thousands):
March 31, 2022
|  |  |  |  |  |  |  |  | Year Originated
Risk Rating |  | Number of Loans |  | Total |  | % of Portfolio |  |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | Prior
1 |  | — |  |  | $ | — |  |  | — | % |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
2 |  | 1 |  |  | 32,000 |  |  | 0.4 | % |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 32,000 |
3 |  | 61 |  |  | 7,774,143 |  |  | 92.8 | % |  |  | 994,971 |  |  | 2,636,290 |  |  | 669,291 |  |  | 1,822,835 |  |  | 796,136 |  |  | 854,620 |
4 |  | 1 |  |  | 106,313 |  |  | 1.3 | % |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 106,313 |
5 |  | 4 |  |  | 458,963 |  |  | 5.5 | % |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 458,963 |
Total |  | 67 |  |  | $ | 8,371,419 |  |  | 100.0 | % |  |  | $ | 994,971 |  |  | $ | 2,636,290 |  |  | $ | 669,291 |  |  | $ | 1,822,835 |  |  | $ | 796,136 |  |  | $ | 1,451,896 |
General CECL Allowance(1) |  | (21,377) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total carrying value, net | $ | 8,350,042 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Weighted Average Risk Rating |  | 3.1 |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2021
|  |  |  |  |  |  |  |  | Year Originated
Risk Rating |  | Number of Loans |  | Total |  | % of Portfolio |  |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | Prior
1 |  | — |  |  | $ | — |  |  | — | % |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
2 |  | 1 |  |  | 32,000 |  |  | 0.4 | % |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 32,000 |
3 |  | 62 |  |  | 7,372,081 |  |  | 93.5 | % |  |  | 2,622,248 |  |  | 644,404 |  |  | 2,307,948 |  |  | 828,270 |  |  | 389,264 |  |  | 579,947 |
4 |  | 1 |  |  | 81,980 |  |  | 1.0 | % |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 81,980 |  |  | — |
5 |  | 3 |  |  | 404,787 |  |  | 5.1 | % |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 177,483 |  |  | 227,304 |
Total |  | 67 |  |  | $ | 7,890,848 |  |  | 100.0 | % |  |  | $ | 2,622,248 |  |  | $ | 644,404 |  |  | $ | 2,307,948 |  |  | $ | 828,270 |  |  | $ | 648,727 |  |  | $ | 839,251 |
General CECL Allowance(1) |  | (33,588) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total carrying value, net | $ | 7,857,260 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Weighted Average Risk Rating |  | 3.1 |  |  |  |  |  |  |  |  |  |  |  |  |
——————— (1)$3.9 million and $3.1 million of the General CECL Allowance for 2022 and 2021, respectively, is excluded from the tables above because it relates to unfunded commitments and has been recorded as a liability under accounts payable, accrued expenses and other liabilities in our condensed consolidated balance sheet
Financing Receivable Cost Recovery | The following table summarizes the loans with Specific CECL Allowances that have been recorded on our portfolio as of March 31, 2022 ($ in thousands):
Type | Property type | Location | Amortized cost prior to Specific CECL Allowance | Specific CECL Allowance(1) | Amortized cost | Interest recognition status/ as of date
Mortgage |  |  |  |  |
| Urban Predevelopment(2)(3) | Miami, FL | $190,610 | $68,000 | $122,610 | Cost Recovery/ 3/1/2020
| Multifamily Development(2) | Brooklyn, NY | 189,775 | 10,000 | 179,775 | Cost Recovery/ 3/1/2020
| Retail Center(4)(5) | Cincinnati, OH | 171,598 | 67,000 | 104,598 | Cost Recovery/ 10/1/2019
Mortgage total: |  | $551,983 | $145,000 | $406,983 |
Mezzanine |  |  |  |  |
| Residential-for-Sale(6) | Manhattan, NY | $81,980 | $30,000 | $51,980 | Non-accrual/ 7/1/2021
Mezzanine total: |  | $81,980 | $30,000 | $51,980 |
Total: |  | $633,963 | $175,000 | $458,963 |
——————— (1)During the three months ended March 31, 2022, we recorded $30.0 million of Specific CECL Allowance. (2)The fair value of this collateral was determined by assuming rent per square foot ranging from $48 to $215 and a capitalization rate ranging from 5.0% to 5.5%. (3)In October 2020, we entered a joint venture with CCOF Design Venture, LLC, which owns the underlying properties that secure our $187.9 million first mortgage loan. The entity in which we own an interest, and which owns the underlying properties, was deemed to be a Variable Interest Entity ("VIE") and we determined that we are not the primary beneficiary of that VIE as we do not have the power to direct the entity's activities. The related profit and loss from the joint venture was immaterial for the three months ended March 31, 2022 and 2021. (4)The fair value of retail collateral was determined by applying a capitalization rate of 8.0%. (5)In September 2018, we entered a joint venture with Turner Consulting II, LLC ("Turner Consulting"), through an entity which owns the underlying property that secures our loan. Turner Consulting contributed 10% of the venture’s equity and we contributed 90%. The entity was deemed to be a VIE and we determined that we are not the primary beneficiary of that VIE as we do not have the power to direct the entity's activities. During the three months ended March 31, 2022 and 2021, $0.2 million and $0.3 million, respectively, of interest paid was applied towards reducing the carrying value of the loan. The related profit and loss from the joint venture was immaterial for the three months ended March 31, 2022 and 2021. (6)The fair value of the residential-for-sale collateral was determined by making certain projections and assumptions with respect to future performance and a discount rate of 10%.
Schedule of CECL Reserves | The following schedule sets forth our General CECL Allowance as of March 31, 2022 and December 31, 2021 ($ in thousands):
|  | March 31, 2022 |  | December 31, 2021
Commercial mortgage loans, net |  | $ | 16,663 |  |  | $ | 22,554 |
Subordinate loans and other lending assets, net |  | 4,714 |  |  | 11,034 |
Unfunded commitments(1) |  | 3,928 |  |  | 3,106 |
Total General CECL Allowance |  | $ | 25,305 |  |  | $ | 36,694 |
——————— (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 f or the three months ended March 31, 2022 and 2021, 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, 2021 | $145,000 |  | $33,588 | $3,106 | $36,694 |  | $181,694 |  | 0.49% | 2.26%
Changes: |  |  |  |  |  |  |  |  |  |
| Q1 Allowance (Reversals) | 30,000 |  | (12,211) | 822 | (11,389) |  | 18,611 |  |  |
March 31, 2022 | $175,000 |  | $21,377 | $3,928 | $25,305 |  | $200,305 |  | 0.32% | 2.34%
|  | 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 | %

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