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

12 Months Ended

Dec. 31, 2024

Our loan portfolio was comprised of the following at December 31, 2024 and December 31, 2023 ($ in thousands):


Loan Type	December 31, 2024		December 31, 2023
Commercial mortgage loans, net(1)	$	6,715,347	$	7,925,359
Subordinate loans, net		388,809		432,734
Total loans, net	$	7,104,156	$	8,358,093
Note receivable, held for sale		41,200		—
Carrying value, net	$	7,145,356	$	8,358,093

(1)

Includes $8.3 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 year ended December 31, 2024 was as follows ($ in thousands):


	Principal Balance			Deferred Fees/Other Items			Specific CECL Allowance			Carrying Value, Net(1)
December 31, 2023	$	8,610,110		$	(32,535	)	$	(193,000	)	$	8,384,575
New loan fundings(1)		1,285,614			—			—			1,285,614
Add-on loan fundings(2)		627,378			—			—			627,378
Loan repayments and sale		(2,541,740	)		—			—			(2,541,740	)
Gain (loss) on foreign currency translation		(133,973	)		496			—			(133,477	)
Increase in Specific CECL Allowance, net		—			—			(149,500	)		(149,500	)
Transfer to Other Assets(3)		(159,667	)		—			—			(159,667	)
Realized loss on investment(4)		(137,312	)		9,121			—			(128,191	)
Deferred fees and other items(5)		—			(39,554	)		—			(39,554	)
Amortization of fees		—			30,754			—			30,754
December 31, 2024	$	7,550,410		$	(31,718	)	$	(342,500	)	$	7,176,192
General CECL Allowance(6)											(30,836	)
Carrying value, net										$	7,145,356

(1)

Includes Note receivable, held for sale.

(2)

Represents fundings subsequent to loan closing.

(3)

Refer to "Massachusetts Healthcare" below for full discussion.

(4)

Realized loss on investment includes a realized loss of $127.5 million during the third quarter of 2024 related to the Massachusetts Healthcare Loan, discussed below, consisting of a $136.6 million write-off of principal, partially offset by $9.1 million, reflecting the cost recovery interest received and unamortized origination fees, and $0.7 million loss on the sale of a commercial mortgage loan collateralized by a hotel property located in Honolulu, HI in April 2024.

(5)

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

(6)

$5.9 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 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):


	December 31, 2024(1)			December 31, 2023
Number of loans		46			50
Principal balance	$	7,550,410		$	8,610,110
Carrying value, net	$	7,145,356		$	8,358,093
Unfunded loan commitments(2)	$	840,627		$	868,582
Weighted-average cash coupon(3)		7.5	%		8.3	%
Weighted-average remaining fully-extended term(4)	2.5 years			2.3 years
Weighted-average expected term(5)	1.9 years			1.8 years

(1)

Includes Note receivable, held for sale.

(2)

Unfunded loan commitments are primarily 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.

(3)

For floating rate loans, based on applicable benchmark rates as of the specified dates. For loans placed on nonaccrual, the interest rate used in calculating weighted-average cash coupon is 0%.

(4)

Assumes all extension options are exercised.

(5)

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

Property Type

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


	December 31, 2024				December 31, 2023
Property Type	Carrying Value			% of Portfolio(1)	Carrying Value			% of Portfolio(1)
Office	$	1,756,965		24.6%	$	1,593,320			19.0	%
Hotel		1,575,270		22.1		2,128,256			25.4
Residential(2)		1,556,819		21.8		1,407,518			16.8
Retail		946,017		13.3		1,407,764			16.8
Industrial		399,546		5.6		293,133			3.5
Mixed Use		363,211		5.1		679,303			8.1
Healthcare		—		—		351,523			4.2
Other(3)		537,164		7.5		523,758			6.2
Total	$	7,134,992		100.0%	$	8,384,575			100.0	%
General CECL Allowance(4)		(30,836	)			(26,482	)
Carrying value, net	$	7,104,156			$	8,358,093

(1)

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

(2)

Includes residential-for-sale (5.5%), senior care facilities (4.7%), multifamily (4.7%), student housing (4.6%), and vacation rentals (2.3%) in 2024 and residential-for-sale (8.1%), senior care facilities (1.9%), multifamily (2.1%), student housing (2.7%), and vacation rentals (2.0%) in 2023.

(3)

Other property types include pubs (2.9%), caravan parks (2.7%), and urban predevelopment (1.9%) in 2024, and caravan parks (2.4%), parking garages (2.3%) and urban predevelopment (1.5%) in 2023.

(4)

$5.9 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 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):


	December 31, 2024				December 31, 2023
Geographic Location	Carrying Value			% of Portfolio(1)	Carrying Value			% of Portfolio(1)
United Kingdom	$	2,423,856		33.9%	$	2,675,097			31.9	%
New York City		1,539,995		21.6		1,736,856			20.7
Other Europe(2)		1,265,344		17.7		1,686,425			20.1
Midwest		560,436		7.9		522,137			6.2
Southeast		511,742		7.2		535,054			6.4
West		489,008		6.9		484,842			5.8
Other(3)		344,611		4.8		744,164			8.9
Total	$	7,134,992		100.0%	$	8,384,575			100.0	%
General CECL Allowance(4)		(30,836	)			(26,482	)
Carrying value, net	$	7,104,156			$	8,358,093

(1)

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

(2)

Other Europe includes Germany (8.4%), Italy (2.4%), Spain (3.5%), Sweden (3.1%) and the Netherlands (0.3%) 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 (0.6%), Mid-Atlantic (1.4%), Southwest (1.5%) and Other (1.3%) in 2024, and Northeast (5.0%), Mid-Atlantic (1.1%), Southwest (1.7%) and Other (1.1%) in 2023.

(4)

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 December 31, 2024 and December 31, 2023, respectively ($ in thousands):


December 31, 2024
							Amortized Cost(1) by Year Originated
Risk Rating	Number of Loans		Total			% of Portfolio	2024		2023		2022		2021		2020		Prior
1		—	$	—		— %	$	—	$	—	$	—	$	—	$	—	$	—
2		3		560,180		7.9%		—		—		547,851		12,329		—		—
3		37		6,169,860		86.4%		1,218,189		649,599		1,549,750		1,173,982		397,972		1,180,368
4		2		279,732		3.9%		—		—		—		—		—		279,732
5		3		125,220		1.8%		—		—		—		—		27,881		97,339
Total		45	$	7,134,992		100.0%		1,218,189		649,599		2,097,601		1,186,311		425,853		1,557,439
General CECL Allowance(2)				(30,836	)
Total carrying value, net			$	7,104,156
Weighted-Average Risk Rating				3.0
Gross write-offs			$	127,512			$	—	$	—	$	127,512	$	—	$	—	$	—


December 31, 2023
									Amortized Cost(1) 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(2)				(26,482	)
Total carrying value, net			$	8,358,093
Weighted-Average Risk Rating				3.0
Gross write-offs			$	81,890					$	—	$	—	$	—	$	—	$	—	$	81,890

(1)

Net of Specific CECL Allowance.

(2)

Schedule of CECL Reserves

The following schedule illustrates changes in CECL Allowances for the year ended December 31, 2024 ($ in thousands):


	Specific CECL			General CECL Allowance						Total CECL			CECL Allowance as % of Amortized Cost
	Allowance(1)			Funded		Unfunded		Total		Allowance			General(1)			Total
December 31, 2023	$	193,000		$	26,482	$	4,017	$	30,499	$	223,499			0.38	%		2.61	%
Changes:
Allowances (Reversals), net		277,012			4,354		1,931		6,285		283,297
Write-offs		(127,512	)		—		—		—		(127,512	)
December 31, 2024	$	342,500		$	30,836	$	5,948	$	36,784	$	379,284			0.52	%		5.07	%

(1)

General CECL Allowance pool excludes loans and other lending assets that are held for sale or have a Specific CECL Allowance.

The following schedule illustrates changes in CECL Allowances for the year ended December 31, 2023 ($ in thousands):


	Specific CECL			General CECL Allowance								Total CECL			CECL Allowance as % of Amortized Cost
	Allowance(1)			Funded		Unfunded			Total			Allowance			General(1)			Total
December 31, 2022	$	133,500		$	26,224	$	4,347		$	30,571		$	164,071			0.36	%		1.86	%
Changes:
Allowances (Reversals), net		141,480			258		(330	)		(72	)		141,408
Write-offs		(81,980	)		—		—			—			(81,980	)
December 31, 2023	$	193,000		$	26,482	$	4,017		$	30,499		$	223,499			0.38	%		2.61	%

(1)

General CECL Allowance pool excludes loans and other lending assets that have a Specific CECL Allowance

The following schedule sets forth our General CECL Allowance as of December 31, 2024 and December 31, 2023 ($ in thousands):


	December 31, 2024		December 31, 2023
Commercial mortgage loans, net	$	30,167	$	25,723
Subordinate loans, net		669		759
Unfunded commitments(1)		5,948		4,017
Total General CECL Allowance	$	36,784	$	30,499

(1)

The General CECL Allowance on unfunded commitments is recorded as a liability on our consolidated balance sheets within accounts payable, accrued expenses and other liabilities.

Financing Receivable Cost Recovery

The following table summarizes our risk rated five loans as of December 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	$	164,339	$	67,000	$	97,339	Nonaccrual/ 10/1/2019	5
Mezzanine	Residential(3)	Manhattan, NY		295,881		268,000		27,881	Nonaccrual/ 7/1/2021	5
Mezzanine	Office(4)	Troy, MI		7,500		7,500		-	Nonaccrual/ 6/30/2024	5
Total			$	467,720	$	342,500	$	125,220

(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 second quarter of 2024, the loan's maturity was extended from September 2024 to September 2025.

(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%.

(4)

The fair value of the office collateral was determined by applying an exit capitalization rate of 10% and a discount rate of 20%