XML 42 R36.htm IDEA: XBRL DOCUMENT v3.24.3
Secured Debt Arrangements, Net (Tables)
 9 Months Ended
Sep. 30, 2024
Debt Disclosure [Abstract]  
Schedule of Weighted Average Maturities and Interest Rates of Borrowings

Our borrowings under secured debt arrangements as of September 30, 2024 and December 31, 2023 are detailed in the following table ($ in thousands):

 

 

September 30, 2024

 

December 31, 2023

 

Maximum
Amount of
Borrowings(1)

 

 

Borrowings
Outstanding(1)

 

 

Maturity (2)

 

Maximum
Amount of
Borrowings(1)

 

 

Borrowings
Outstanding(1)

 

 

Maturity (2)

JPMorgan Facility - USD(3)(4)

 

$

1,500,000

 

 

$

832,657

 

 

September 2026

 

$

1,482,584

 

 

$

1,043,964

 

 

September 2026

JPMorgan Facility - GBP(3)(4)

 

 

—

 

 

 

—

 

 

N/A

 

 

17,416

 

 

 

17,416

 

 

September 2026

Deutsche Bank Facility - USD(3)

 

 

700,000

 

 

 

183,397

 

 

March 2026

 

 

700,000

 

 

 

275,815

 

 

March 2026

Atlas Facility - USD(5)

 

 

800,000

 

 

 

622,788

 

 

March 2027(6)

 

 

686,527

 

 

 

669,302

 

 

April 2027(7)(8)

HSBC Facility - GBP

 

 

403,390

 

 

 

403,390

 

 

May 2025

 

 

383,967

 

 

 

383,967

 

 

May 2025

HSBC Facility - EUR

 

 

269,032

 

 

 

269,032

 

 

January 2026(8)

 

 

281,401

 

 

 

281,401

 

 

January 2026

Goldman Sachs Facility - USD

 

 

—

 

 

 

—

 

 

N/A(9)

 

 

13,437

 

 

 

13,437

 

 

November 2025(9)

Goldman Sachs Facility - GBP

 

 

491,500

 

 

 

390,163

 

 

May 2029

 

 

—

 

 

 

—

 

 

N/A

Barclays Facility - USD

 

 

500,000

 

 

 

353,153

 

 

March 2027(7)

 

 

200,000

 

 

 

107,929

 

 

June 2027(7)

MUFG Securities Facility - GBP

 

 

209,759

 

 

 

194,203

 

 

August 2025(7)

 

 

204,690

 

 

 

204,690

 

 

June 2025(7)

Churchill Facility - USD

 

 

130,000

 

 

 

122,595

 

 

April 2026

 

 

130,000

 

 

 

126,515

 

 

March 2026

Santander Facility - USD

 

 

300,000

 

 

 

67,500

 

 

February 2026(7)

 

 

300,000

 

 

 

67,500

 

 

February 2026(7)

Santander Facility - EUR(10)

 

 

—

 

 

 

—

 

 

N/A

 

 

59,611

 

 

 

55,716

 

 

August 2024

Total Secured Credit Facilities

 

 

5,303,682

 

 

 

3,438,878

 

 

 

 

 

4,459,633

 

 

 

3,247,652

 

 

 

Barclays Private Securitization - GBP, EUR, SEK

 

 

2,034,897

 

 

 

2,034,897

 

 

December 2026(8)

 

 

2,369,125

 

 

 

2,157,157

 

 

June 2026(8)

Revolving Credit Facility - USD(11)(12)

 

 

160,000

 

 

 

51,050

 

 

March 2026

 

 

170,000

 

 

 

147,000

 

 

March 2026

Total Secured Debt Arrangements

 

 

7,498,579

 

 

 

5,524,825

 

 

 

 

 

6,998,758

 

 

 

5,551,809

 

 

 

Less: deferred financing costs

 

 

N/A

 

 

 

(10,880

)

 

 

 

 

N/A

 

 

 

(13,333

)

 

 

Total Secured Debt Arrangements, net(13)(14)(15)

 

$

7,498,579

 

 

$

5,513,945

 

 

 

 

$

6,998,758

 

 

$

5,538,476

 

 

 

 

(1)
As of September 30, 2024, British Pound Sterling("GBP"), Euro ("EUR"), and Swedish Krona ("SEK") borrowings were converted to USD at a rate of 1.34, 1.11, and 0.10, respectively. As of December 31, 2023, GBP, EUR and SEK borrowings were converted to USD at a rate of 1.27, 1.10 and 0.10, respectively.
(2)
Maturity date assumes extensions at our option are exercised with consent of financing providers, where applicable.
(3)
The JPMorgan Facility and Deutsche Bank Facility enable us to elect to receive advances in USD, GBP, or EUR.
(4)
The JPMorgan Facility allows for $1.5 billion of maximum borrowings in total as of September 30, 2024.
(5)
The Atlas Facility (as defined below) was formerly the Credit Suisse Facility. See "Atlas Facility" below for additional discussion.
(6)
The Atlas Facility was amended during March 2024 to convert the facility's maturity from a six month "evergreen" feature to a two-year initial term, with an additional one-year extension option.
(7)
Assumes financings are extended in line with the underlying loans.
(8)
Represents weighted-average maturity across various financings with the counterparty. See below for additional details.
(9)
Facility entered the two-year amortization period during Q4 2023. During the amortization period, the maturity date for current outstanding transactions are extended for a period of up to two years from the November 2023 maturity. The facility was terminated during the nine months ended September 30, 2024, in conjunction with repayment of the underlying loan securing the facility.
(10)
The facility was terminated during the three months ended June 30, 2024 in conjunction with repayment of the underlying loan securing the facility.
(11)
The current stated maturity of the Revolving Credit Facility (as defined below) is March 2026. Borrowings under the Revolving Credit Facility bear interest at a per annum rate equal to the sum of (i) a floating rate index and (ii) a fixed margin. Borrowings under the Revolving Credit Facility are full recourse to certain guarantor wholly-owned subsidiaries of the Company. See "Revolving Credit Facility" below for additional discussion.
(12)
Effective September 30, 2024, the capacity on our Revolving Credit Facility was reduced to $160.0 million from $170.0 million.
(13)
Weighted-average borrowing costs as of September 30, 2024 and December 31, 2023 were applicable benchmark rates and credit spread adjustments, plus spreads of USD: +2.56% / GBP: +2.28% / EUR: +2.11% / SEK: +1.50% and USD: +2.49% / GBP: +2.21% / EUR: +1.86% / SEK: +1.50%, respectively.
(14)
Weighted-average advance rates based on cost as of September 30, 2024 and December 31, 2023 were 70.9% (65.1% (USD) / 75.1% (GBP) / 72.8% (EUR) / 80.4% (SEK)) and 68.4% (62.9% (USD) / 72.5% (GBP) / 72.1% (EUR) / 80.4% (SEK)), respectively.
(15)
As of September 30, 2024 and December 31, 2023, approximately 48% and 58%, respectively, is the outstanding balance under these secured borrowings were recourse to us.
Schedule of Assets Under the Private Barclays Securitization

The table below provides principal balances and the carrying value for commercial mortgage loans pledged to the Barclays Private Securitization as of September 30, 2024 and December 31, 2023 ($ in thousands):

 

 

September 30, 2024

 

Local Currency

 

Count

 

Outstanding
Principal

 

 

Carrying Value

 

GBP

 

6

 

$

1,745,874

 

 

$

1,726,495

 

EUR

 

3

 

 

743,480

 

 

 

734,207

 

SEK

 

1

 

 

244,074

 

 

 

242,893

 

Total

 

10

 

$

2,733,428

 

 

$

2,703,595

 

 

 

December 31, 2023

 

Local Currency

 

Count

 

Outstanding
Principal

 

 

Carrying Value

 

GBP

 

7

 

$

1,662,457

 

 

$

1,643,979

 

EUR

 

6

 

 

1,021,272

 

 

 

1,012,987

 

SEK

 

1

 

 

248,088

 

 

 

246,220

 

Total

 

14

 

$

2,931,817

 

 

$

2,903,186

 

The table below provides the borrowings outstanding (on an as converted basis) and weighted-average fully-extended maturities by currency for the assets financed under the Barclays Private Securitization as of September 30, 2024 ($ in thousands):

 

 

Borrowings
Outstanding(1)

 

 

Fully-Extended
Maturity(2)

Total/Weighted-Average GBP

 

$

1,288,941

 

 

August 2026

Total/Weighted-Average EUR

 

 

550,425

 

 

October 2027(3)

Total/Weighted-Average SEK

 

 

195,530

 

 

May 2026

Total/Weighted-Average Securitization

 

$

2,034,897

 

 

December 2026

 

(1)
As of September 30, 2024, we had £963.7 million, €494.3 million, and kr2.0 billion of borrowings outstanding under the Barclays Private Securitization secured by certain of our commercial mortgage loans.
(2)
Assumes underlying loans extend to fully extended maturity and extensions at our option are exercised.
(3)
The EUR portion of the Barclays Private Securitization has an "evergreen" feature such that the facility continues for one year and can be terminated by either party on certain dates with, depending on the date of notice, a minimum of nine to twelve months' notice.

The table below provides the borrowings outstanding (on an as converted basis) and weighted-average fully-extended maturities by currency for the assets financed under the Barclays Private Securitization as of December 31, 2023 ($ in thousands):

 

 

Borrowings
Outstanding(1)

 

 

Fully-Extended
Maturity(2)

Total/Weighted-Average GBP

 

 

1,234,740

 

 

June 2026

Total/Weighted-Average EUR

 

 

723,947

 

 

May 2026(3)

Total/Weighted-Average SEK

 

 

198,470

 

 

May 2026

Total/Weighted-Average Securitization

 

$

2,157,157

 

 

June 2026

 

(1)
As of December 31, 2023, we had £969.9 million, €655.8 million, and kr$2.0 billion of borrowings outstanding under the Barclays Private Securitization secured by certain of our commercial mortgage loans.
(2)
Assumes underlying loans extend to fully extended maturity and extensions at our option are exercised.
(3)
The EUR portion of the Barclays Private Securitization has an "evergreen" feature such that the facility continues for one year and can be terminated by either party on certain dates with, depending on the date of notice, a minimum of nine to twelve months' notice.

The following table summarizes the terms of the Term Loans as of September 30, 2024 ($ in thousands):

 

 

Principal Amount

 

 

Unamortized Issuance Discount(1)

 

 

Deferred Financing Costs(1)

 

 

Carrying Value

 

 

Rate

 

 

Maturity Date

2026 Term Loan

 

$

473,750

 

 

$

(565

)

 

$

(3,162

)

 

$

470,023

 

 

 

2.86

%

 

5/15/2026

2028 Term Loan

 

 

289,500

 

 

 

(1,464

)

 

 

(2,618

)

 

 

285,418

 

 

 

3.61

%

 

3/11/2028

Total

 

$

763,250

 

 

$

(2,029

)

 

$

(5,780

)

 

$

755,441

 

 

 

 

 

 

 

(1)
Unamortized issuance discount and deferred financing costs will be amortized to interest expense over remaining life of respective term loans.

The following table summarizes the terms of the Term Loans as of December 31, 2023 ($ in thousands):

 

 

Principal Amount

 

 

Unamortized Issuance Discount(1)

 

 

Deferred Financing Costs(1)

 

 

Carrying Value

 

 

Rate

 

 

Maturity Date

2026 Term Loan

 

$

477,500

 

 

$

(833

)

 

$

(4,302

)

 

$

472,365

 

 

 

2.86

%

 

5/15/2026

2028 Term Loan

 

 

291,750

 

 

 

(1,786

)

 

 

(3,179

)

 

 

286,785

 

 

 

3.61

%

 

3/11/2028

Total

 

$

769,250

 

 

$

(2,619

)

 

$

(7,481

)

 

$

759,150

 

 

 

 

 

 

 

(1)
Unamortized issuance discount and deferred financing costs will be amortized to interest expense over remaining life of respective term loans.
Schedule of Assets and Liabilities

The table below provides the assets and liabilities of the Barclays Private Securitization VIE included in our condensed consolidated balance sheets ($ in thousands):

 

 

September 30, 2024

 

 

December 31, 2023

 

Assets:

 

 

 

 

 

 

Cash

 

$

1,366

 

 

$

924

 

Commercial mortgage loans, net(1)

 

 

2,703,595

 

 

 

2,903,186

 

Other Assets(2)

 

 

142,208

 

 

 

41,180

 

Total Assets

 

$

2,847,170

 

 

$

2,945,290

 

Liabilities:

 

 

 

 

 

 

Secured debt arrangements, net (net of deferred financing costs of $1.3 million and $2.0 million in 2024 and 2023, respectively)

 

$

2,033,613

 

 

$

2,155,197

 

Accounts payable, accrued expenses and other liabilities(3)(4)

 

 

89,090

 

 

 

9,083

 

Total Liabilities

 

$

2,122,703

 

 

$

2,164,280

 

 

(1)
Net of the General CECL Allowance of $12.7 million and $8.3 million as of September 30, 2024 and December 31, 2023, respectively.
(2)
Includes loan principal, interest, and other fees held by our third-party servicers as of the balance sheet date and remitted during subsequent remittance cycle.
(3)
Includes General CECL Allowance related to unfunded commitments on commercial mortgage loans, net of $2.4 million and $2.5 million as of September 30, 2024 and December 31, 2023, respectively.
(4)
Includes pending transfers from our third party loan servicers that were remitted to our secured credit facility counterparties during the subsequent remittance cycle.
Schedule of Net Income from VIE

The table below provides the net income of the Barclays Private Securitization VIE included in our condensed consolidated statement of operations ($ in thousands):

 

 

Three months ended September 30,

 

 

Nine months ended September 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net interest income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest income from commercial mortgage loans

 

$

69,455

 

 

$

56,537

 

 

$

197,574

 

 

$

156,295

 

Interest expense

 

 

(39,343

)

 

 

(30,379

)

 

 

(111,445

)

 

 

(80,753

)

Net interest income

 

$

30,112

 

 

$

26,158

 

 

$

86,129

 

 

$

75,542

 

General and administrative expense

 

$

(4

)

 

$

(2

)

 

$

(6

)

 

$

(9

)

Decrease (increase) in current expected credit loss allowance, net

 

 

(176

)

 

 

1,744

 

 

 

(4,315

)

 

 

1,169

 

Foreign currency translation gain (loss)

 

 

38,209

 

 

 

(24,266

)

 

 

24,799

 

 

 

(3,555

)

Net income

 

$

68,141

 

 

$

3,634

 

 

$

106,607

 

 

$

73,147

 
Schedule of Remaining Maturities of Borrowings

At September 30, 2024, our borrowings had the following remaining maturities ($ in thousands):

 

 

Less than
1 year

 

 

1 to 3
years

 

 

3 to 5
years

 

 

More than
5 years

 

 

Total

 

JPMorgan Facility

 

$

197,798

 

 

$

634,859

 

 

$

—

 

 

$

—

 

 

$

832,657

 

Deutsche Bank Facility

 

 

—

 

 

 

183,397

 

 

 

—

 

 

 

—

 

 

 

183,397

 

Atlas Facility

 

 

105,109

 

 

 

517,679

 

 

 

—

 

 

 

—

 

 

 

622,788

 

HSBC Facility

 

 

527,665

 

 

 

144,757

 

 

 

—

 

 

 

—

 

 

 

672,422

 

Goldman Sachs Facility - GBP

 

 

—

 

 

 

—

 

 

 

390,163

 

 

 

—

 

 

 

390,163

 

Barclays Facility

 

 

—

 

 

 

353,153

 

 

 

—

 

 

 

—

 

 

 

353,153

 

MUFG Securities Facility

 

 

194,203

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

194,203

 

Churchill Facility

 

 

—

 

 

 

122,595

 

 

 

—

 

 

 

—

 

 

 

122,595

 

Santander Facility - USD

 

 

67,500

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

67,500

 

Barclays Private Securitization

 

 

122,275

 

 

 

1,710,368

 

 

 

202,254

 

 

 

—

 

 

 

2,034,897

 

Revolving Credit Facility

 

 

37,500

 

 

 

13,550

 

 

 

—

 

 

 

—

 

 

 

51,050

 

Total

 

$

1,252,050

 

 

$

3,680,358

 

 

$

592,417

 

 

$

—

 

 

$

5,524,825

 
Schedule of Outstanding, Maximum and Average Balances of Debt

The table below summarizes the outstanding balances at September 30, 2024, as well as the maximum and average month-end balances for the nine months ended September 30, 2024 for our borrowings under secured debt arrangements ($ in thousands).

 

 

As of September 30, 2024

 

 

For the nine months ended September 30, 2024

 

 

Balance

 

 

Collateral(1)

 

 

Maximum
Month-End
Balance

 

 

Average
Month-End
Balance

 

JPMorgan Facility

 

$

832,657

 

 

 

1,552,582

 

 

 

1,063,261

 

 

$

981,865

 

Deutsche Bank Facility

 

 

183,397

 

 

 

288,425

 

 

 

278,703

 

 

 

213,556

 

Goldman Sachs Facility - USD

 

 

—

 

 

 

—

 

 

 

11,620

 

 

 

3,871

 

Goldman Sachs Facility - GBP

 

 

390,163

 

 

 

505,785

 

 

 

390,163

 

 

 

209,010

 

Atlas Facility

 

 

622,788

 

 

 

770,590

 

 

 

758,201

 

 

 

693,554

 

HSBC Facility

 

 

672,422

 

 

 

896,872

 

 

 

672,422

 

 

 

657,656

 

Barclays Facility

 

 

353,153

 

 

 

459,048

 

 

 

353,153

 

 

 

213,029

 

MUFG Securities Facility

 

 

194,203

 

 

 

282,548

 

 

 

211,057

 

 

 

203,437

 

Churchill Facility

 

 

122,595

 

 

 

163,416

 

 

 

126,080

 

 

 

124,338

 

Santander Facility - USD

 

 

67,500

 

 

 

99,912

 

 

 

67,500

 

 

 

67,500

 

Santander Facility - EUR

 

 

—

 

 

 

—

 

 

 

54,677

 

 

 

30,245

 

Barclays Private Securitization

 

 

2,034,897

 

 

 

2,716,314

 

 

 

2,249,538

 

 

 

2,108,953

 

Revolving Credit Facility

 

 

51,050

 

 

 

103,276

 

 

 

150,000

 

 

 

51,728

 

Total

 

$

5,524,825

 

 

$

7,838,768

 

 

 

 

 

 

 

 

(1)
Represents the amortized cost balance of commercial loan collateral assets and the value of net real estate assets of real property owned collateral assets.

The table below summarizes the outstanding balances at December 31, 2023, as well as the maximum and average month-end balances for the year ended December 31, 2023 for our borrowings under secured debt arrangements ($ in thousands).

 

 

As of December 31, 2023

 

 

For the year ended December 31, 2023

 

 

Balance

 

 

Collateral(1)

 

 

Maximum
Month-End
Balance

 

 

Average
Month-End
Balance

 

JPMorgan Facility

 

$

1,061,380

 

 

$

1,871,854

 

 

$

1,324,226

 

 

$

1,190,651

 

Deutsche Bank Facility

 

 

275,815

 

 

 

419,170

 

 

 

385,818

 

 

 

322,676

 

Goldman Sachs Facility

 

 

13,437

 

 

 

28,533

 

 

 

70,249

 

 

 

30,482

 

Atlas Facility

 

 

669,302

 

 

 

933,085

 

 

 

688,126

 

 

 

667,794

 

HSBC Facility

 

 

665,368

 

 

 

860,134

 

 

 

667,430

 

 

 

651,758

 

Barclays Facility

 

 

107,929

 

 

 

129,439

 

 

 

111,909

 

 

 

110,729

 

MUFG Securities Facility

 

 

204,690

 

 

 

278,223

 

 

 

206,362

 

 

 

200,447

 

Churchill Facility

 

 

126,515

 

 

 

168,138

 

 

 

130,000

 

 

 

128,094

 

Santander Facility - USD

 

 

67,500

 

 

 

99,648

 

 

 

75,000

 

 

 

68,125

 

Santander Facility - EUR

 

 

55,716

 

 

 

74,288

 

 

 

55,716

 

 

 

54,347

 

Barclays Private Securitization

 

 

2,157,157

 

 

 

2,911,470

 

 

 

2,157,157

 

 

 

1,896,144

 

Revolving Credit Facility

 

 

147,000

 

 

 

319,048

 

 

 

147,000

 

 

 

93,500

 

Total

 

$

5,551,809

 

 

$

8,093,030

 

 

 

 

 

 

 

 

(1)
Represents the amortized cost balance of commercial loan collateral assets and the value of net real estate assets of real property owned collateral assets.