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Commercial Mortgage Loans, Subordinate Loans and Other Lending Assets, Net (Tables) | 3 Months Ended
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Mar. 31, 2024
Receivables [Abstract] |
Schedule of Loan Portfolio | Our loan portfolio was comprised of the following at March 31, 2024 and December 31, 2023 ($ in thousands):
Loan Type |  | March 31, 2024 |  | December 31, 2023
Commercial mortgage loans, net(1) |  | $ | 7,846,460 |  |  | $ | 7,925,359 |
Commercial mortgage loan, held for sale |  | 135,465 |  |  | — |
Subordinate loans, net |  | 303,965 |  |  | 432,734 |
Carrying value, net |  | $ | 8,285,890 |  |  | $ | 8,358,093 |
——————— (1)Includes $83.5 million and $95.5 million in 2024 and 2023, respectively, of contiguous financing structured as subordinate loans.
Schedule of Activity Related to Loan Investment Portfolio | Activity relating to our loan portfolio for the three months ended March 31, 2024 was as follows ($ in thousands):
|  | Principal Balance |  | Deferred Fees/Other Items |  | Specific CECL Allowance |  | Carrying Value, Net
December 31, 2023 |  | $ | 8,610,110 |  |  | $ | (32,535) |  |  | $ | (193,000) |  |  | $ | 8,384,575 |
Add-on loan fundings(1) |  | 321,766 |  |  | — |  |  | — |  |  | 321,766 |
Loan repayments |  | (175,731) |  |  | — |  |  | — |  |  | (175,731) |
Gain (loss) on foreign currency translation |  | (72,337) |  |  | 289 |  |  | — |  |  | (72,048) |
Increase in Specific CECL Allowance, net |  | — |  |  | — |  |  | (142,000) |  |  | (142,000) |
Valuation allowance, loan held for sale |  | (679) |  |  | — |  |  | — |  |  | (679) |
Deferred fees and other items(2) |  | — |  |  | (4,936) |  |  | — |  |  | (4,936) |
Amortization of fees |  | — |  |  | 7,501 |  |  | — |  |  | 7,501 |
March 31, 2024 |  | $ | 8,683,129 |  |  | $ | (29,681) |  |  | $ | (335,000) |  |  | $ | 8,318,448 |
General CECL Allowance(3) |  |  |  |  |  |  |  | (32,558) |
Carrying value, net |  |  |  |  |  |  |  | $ | 8,285,890 |
——————— (1)Represents fundings committed prior to 2024. (2)Other items primarily consist of purchase discounts or premiums, cost recovery interest, exit fees, deferred origination expenses, and the activity of unconsolidated joint ventures. (3)$3.6 million of the General CECL Allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable, accrued expenses and other liabilities in our condensed consolidated balance sheet.
Schedule of Overall Statistics for the Loan Portfolio | The following table details overall statistics for our loan portfolio at the dates indicated ($ in thousands):
|  | March 31, 2024 |  | December 31, 2023
Number of loans |  | 49 |  |  | 50 |
Principal balance |  | $ | 8,683,129 |  |  | $ | 8,610,110 |
Carrying value, net |  | $ | 8,285,890 |  |  | $ | 8,358,093 |
Unfunded loan commitments(1) |  | $ | 555,596 |  |  | $ | 868,582 |
Weighted-average cash coupon(2) |  | 8.4 | % |  | 8.3 | %
Weighted-average remaining fully-extended term(3) |  | 2.3 years |  | 2.3 years
Weighted-average expected term(4) |  | 2.0 years |  | 1.8 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, 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, 2024 |  | December 31, 2023
Property Type |  | Carrying Value |  | % of Portfolio(1) |  | Carrying Value |  | % of Portfolio(1)
Hotel |  | $ | 1,978,794 |  |  | 23.7 | % |  | $ | 2,128,256 |  |  | 25.4 | %
Office |  | 1,635,450 |  |  | 19.7 |  |  | 1,593,320 |  |  | 19.0 |
Retail |  | 1,394,228 |  |  | 16.8 |  |  | 1,407,764 |  |  | 16.8 |
Residential |  | 1,099,134 |  |  | 13.2 |  |  | 1,247,238 |  |  | 14.9 |
Mixed Use |  | 696,048 |  |  | 8.4 |  |  | 679,303 |  |  | 8.1 |
Healthcare |  | 504,075 |  |  | 6.1 |  |  | 511,803 |  |  | 6.1 |
Industrial |  | 276,350 |  |  | 3.3 |  |  | 293,133 |  |  | 3.5 |
Other(2) |  | 734,369 |  |  | 8.8 |  |  | 523,758 |  |  | 6.2 |
Total |  | $ | 8,318,448 |  |  | 100.0 | % |  | $ | 8,384,575 |  |  | 100.0 | %
General CECL Allowance(3) |  | (32,558) |  |  |  |  | (26,482) |  |  |
Carrying value, net |  | $ | 8,285,890 |  |  |  |  | $ | 8,358,093 |  |  |
——————— (1)Percentage of portfolio calculations are made prior to consideration of General CECL Allowance. (2)Other property types include pubs (2.5%), parking garages (2.3%), caravan parks (2.4%) and urban predevelopment (1.6%) in 2024, and parking garages (2.3%), caravan parks (2.4%) and urban predevelopment (1.5%) in 2023. (3)$3.6 million and $4.0 million of the General CECL Allowance for 2024 and 2023, respectively, is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable, accrued expenses and other liabilities in our condensed consolidated balance sheets. Geography The table below details the geographic distribution of the properties securing the loans in our portfolio at the dates indicated ($ in thousands):
|  | March 31, 2024 |  | December 31, 2023
Geographic Location |  | Carrying Value |  | % of Portfolio(1) |  | Carrying Value |  | % of Portfolio(1)
United Kingdom |  | $ | 2,937,602 |  |  | 35.3 | % |  | $ | 2,675,097 |  |  | 31.9 | %
New York City |  | 1,597,081 |  |  | 19.2 |  |  | 1,736,856 |  |  | 20.7 |
Other Europe(2) |  | 1,509,453 |  |  | 18.2 |  |  | 1,686,425 |  |  | 20.1 |
Southeast |  | 537,333 |  |  | 6.5 |  |  | 535,054 |  |  | 6.4 |
Midwest |  | 519,395 |  |  | 6.2 |  |  | 522,137 |  |  | 6.2 |
West |  | 484,581 |  |  | 5.8 |  |  | 484,842 |  |  | 5.8 |
Other(3) |  | 733,003 |  |  | 8.8 |  |  | 744,164 |  |  | 8.9 |
Total |  | $ | 8,318,448 |  |  | 100.0 | % |  | $ | 8,384,575 |  |  | 100.0 | %
General CECL Allowance(4) |  | (32,558) |  |  |  |  | (26,482) |  |  |
Carrying value, net |  | $ | 8,285,890 |  |  |  |  | $ | 8,358,093 |  |  |
——————— (1)Percentage of portfolio calculations are made prior to consideration of General CECL Allowance. (2)Other Europe includes Germany (7.3%), Italy (3.3%), Spain (4.1%), Sweden (2.8%), Ireland (0.5%) and the Netherlands (0.2%) in 2024 and Germany (7.4%), Italy (4.9%), Spain (4.2%), Sweden (2.9%), Ireland (0.5%) and the Netherlands (0.2%) in 2023. (3)Other includes Northeast (4.9%), Southwest (1.7%), Mid-Atlantic (1.1%) and Other (1.1%) in 2024 and Northeast (5.0%), Southwest (1.7%), Mid-Atlantic (1.1%) and Other (1.1%) in 2023. (4)$3.6 million and $4.0 million of the General CECL Allowance for 2024 and 2023, respectively, is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable, accrued expenses and other liabilities in our condensed consolidated balance sheets.
Schedule of Carrying Value of Loan Portfolio Based on Internal Risk Ratings | The following tables present the carrying value of our loan portfolio by year of origination and internal risk rating and gross write-offs by year of origination as of March 31, 2024 and December 31, 2023, respectively ($ in thousands):
March 31, 2024
|  |  |  |  |  |  |  |  | Amortized Cost by Year Originated
Risk Rating |  | Number of Loans |  | Total |  | % of Portfolio |  |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior
1 |  | — |  | $ | — |  |  | — | % |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
2 |  | 4 |  | 447,202 |  |  | 5.4 | % |  |  | — |  |  | — |  |  | 332,059 |  |  | 49,729 |  |  | — |  |  | 65,414 |
3 |  | 41 |  | 7,658,452 |  |  | 92.1 | % |  |  | — |  |  | 642,657 |  |  | 2,412,096 |  |  | 2,206,805 |  |  | 389,815 |  |  | 2,007,079 |
4 |  | 2 |  | 85,612 |  |  | 1.0 | % |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 85,612 |
5 |  | 2 |  | 127,182 |  |  | 1.5 | % |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 27,881 |  |  | 99,301 |
Total |  | 49 |  | $ | 8,318,448 |  |  | 100.0 | % |  |  | $ | — |  |  | $ | 642,657 |  |  | $ | 2,744,155 |  |  | $ | 2,256,534 |  |  | $ | 417,696 |  |  | $ | 2,257,406 |
General CECL Allowance(1) |  | (32,558) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total carrying value, net | $ | 8,285,890 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Weighted-Average Risk Rating | 3.0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross write-offs |  | $ | — |  |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
December 31, 2023
|  |  |  |  |  |  |  |  | Amortized Cost by Year Originated
Risk Rating |  | Number of Loans |  | Total |  | % of Portfolio |  |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | Prior
1 |  | — |  | $ | — |  |  | — | % |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
2 |  | 4 |  | 478,440 |  |  | 5.7 | % |  |  | — |  |  | 280,572 |  |  | — |  |  | — |  |  | 132,309 |  |  | 65,560 |
3 |  | 42 |  | 7,548,252 |  |  | 90.0 | % |  |  | 440,720 |  |  | 2,426,511 |  |  | 2,285,902 |  |  | 387,323 |  |  | 1,465,618 |  |  | 542,177 |
4 |  | 2 |  | 88,112 |  |  | 1.1 | % |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 88,112 |
5 |  | 2 |  | 269,771 |  |  | 3.2 | % |  |  | — |  |  | — |  |  | — |  |  | 169,881 |  |  | — |  |  | 99,890 |
Total |  | 50 |  | $ | 8,384,575 |  |  | 100.0 | % |  |  | $ | 440,720 |  |  | $ | 2,707,083 |  |  | $ | 2,285,902 |  |  | $ | 557,204 |  |  | $ | 1,597,927 |  |  | $ | 795,739 |
General CECL Allowance(1) |  | (26,482) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total carrying value, net | $ | 8,358,093 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Weighted-Average Risk Rating | 3.0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross write-offs |  | $ | 81,890 |  |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 81,890 |
——————— (1)$3.6 million and $4.0 million of the General CECL Allowance for 2024 and 2023, respectively, is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable, accrued expenses and other liabilities in our condensed consolidated balance sheets.
Schedule of CECL Reserves | The following schedule illustrates changes in CECL Allowances f or the three months ended March 31, 2024 ($ in thousands):
|  | Specific CECL Allowance(1) |  | General CECL Allowance |  | Total CECL Allowance |  | CECL Allowance as % of Amortized Cost |
|  |  | Funded | Unfunded | Total |  |  | General(1) | Total |
December 31, 2023 | $ | 193,000 |  |  | $ | 26,482 |  | $ | 4,017 |  | $ | 30,499 |  |  | $ | 223,499 |  |  | 0.38 | % | 2.61 | % |
Changes: |  |  |  |  |  |  |  |  |  |  |
| Allowances (Reversals), net | 142,000 |  |  | 6,076 |  | (392) |  | 5,684 |  |  | 147,684 |  |  |  |  |
March 31, 2024 | $ | 335,000 |  |  | $ | 32,558 |  | $ | 3,625 |  | $ | 36,183 |  |  | $ | 371,183 |  |  | 0.44 | % | 4.29 | % |
(1)Loans evaluated for Specific CECL Allowance are excluded from General CECL Allowance pool. The following schedule illustrates changes in CECL Allowances f or the three months ended March 31, 2023 ($ in thousands):
|  | Specific CECL Allowance(1) |  | General CECL Allowance |  | Total CECL Allowance |  | CECL Allowance as % of Amortized Cost
|  |  | Funded | Unfunded | Total |  |  | General(1) | Total
December 31, 2022 | $ | 133,500 |  |  | $ | 26,224 |  | $ | 4,347 |  | $ | 30,571 |  |  | $ | 164,071 |  |  | 0.36 | % | 1.86 | %
Changes: |  |  |  |  |  |  |  |  |  |
| Allowances | — |  |  | 4,043 |  | 348 |  | 4,391 |  |  | 4,391 |  |  |  |
March 31, 2023 | $ | 133,500 |  |  | $ | 30,267 |  | $ | 4,695 |  | $ | 34,962 |  |  | $ | 168,462 |  |  | 0.42 | % | 1.95 | %
(1)Loans evaluated for Specific CECL Allowance are excluded from General CECL Allowance pool. The following schedule sets forth our General CECL Allowance as of March 31, 2024 and December 31, 2023 ($ in thousands):
|  | March 31, 2024 |  | December 31, 2023
Commercial mortgage loans, net |  | $ | 31,397 |  |  | $ | 25,723 |
Subordinate loans, net |  | 1,161 |  |  | 759 |
Unfunded commitments(1) |  | 3,625 |  |  | 4,017 |
Total General CECL Allowance |  | $ | 36,183 |  |  | $ | 30,499 |
——————— (1)The General CECL Allowance on unfunded commitments is recorded as a liability on our condensed consolidated balance sheets within accounts payable, accrued expenses and other liabilities.
Financing Receivable Cost Recovery | The following table summarizes our risk rated 5 loans as of March 31, 2024, which were analyzed for Specific CECL Allowances ($ in thousands):
Type | Property type | Location | Amortized cost prior to Specific CECL Allowance | Specific CECL Allowance | Amortized cost | Interest recognition status/ as of date | Risk rating
Mortgage |  |  |  |  |  |
| Retail(1)(2) | Cincinnati, OH | $166,301 | $67,000 | $99,301 | Non-Accrual/ 10/1/2019 | 5
Mortgage total: |  | $166,301 | $67,000 | $99,301 |  |
Mezzanine |  |  |  |  |  |
| Residential(3) | Manhattan, NY | $295,881 | $268,000 | $27,881 | Non-Accrual/ 7/1/2021 | 5
Mezzanine total: |  | $295,881 | $268,000 | $27,881 |  |
Total: |  | $462,182 | $335,000 | $127,182 |  |
——————— (1)The fair value of retail collateral was determined by applying a capitalization rate of 9.0%. (2)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 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. During the three months ended March 31, 2024 and 2023, $0.6 million and $0.7 million, respectively, of interest paid was applied towards reducing the carrying value of the loan. During the second quarter of 2023, the loan's maturity was extended from September 2023 to September 2024. (3)The fair value of the residential collateral was determined by making certain projections and assumptions with respect to future performance and a discount rate of 10%.

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- Definition Tabular disclosure of financing receivables by credit quality indicator. The credit quality indicator is a statistic about the credit quality of financing receivables. Examples include, but not limited to, consumer credit risk scores, credit-rating-agency ratings, an entity's internal credit risk grades, loan-to-value ratios, collateral, collection experience and other internal metrics. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 326 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479319/326-20-50-5 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 29 -Publisher FASB -URI https://asc.fasb.org//1943274/2147481962/310-10-50-29 + Details
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