Loans Receivable, net (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of the Company's loans and other lending investments by class

The following is a summary of the Company's loans receivable by class ($ in thousands):



	As of December 31,
Type of Investment	2012			2011
Senior mortgages	$	1,751,256		$	2,801,213
Subordinate mortgages	152,737			211,491
Corporate/Partnership loans	450,491			478,892
Total gross carrying value of loans(1)	$	2,354,484		$	3,491,596
Reserves for loan losses	(524,499		)	(646,624		)
Total carrying value of loans	$	1,829,985		$	2,844,972
Other lending investments—securities	—			15,790
Total loans receivable, net	$	1,829,985		$	2,860,762

Explanatory Note:

_______________________________________________________________________________


(1)	The Company's recorded investment in loans as of December 31, 2012 and 2011, was $2.36 billion and $3.50 billion, respectively, which consists of total gross carrying value of loans plus accrued interest of $9.8 million and $13.3 million, for the same two periods, respectively.

Schedule of changes in the Company's reserve for loan losses

Reserve for Loan Losses—Changes in the Company's reserve for loan losses were as follows ($ in thousands):



	For the Years Ended December 31,
	2012			2011			2010
Reserve for loan losses at beginning of period	$	646,624		$	814,625		$	1,417,949
Provision for loan losses	81,740			46,412			331,487
Charge-offs	(203,865		)	(214,413		)	(934,811		)
Reserve for loan losses at end of period	$	524,499		$	646,624		$	814,625

Schedule of recorded investment in loans and associated reserve for loan losses

The Company's recorded investment in loans (comprised of a loan's carrying value plus accrued interest) and the associated reserve for loan losses were as follows ($ in thousands):



	Individually Evaluated for Impairment(1)			Collectively Evaluated for Impairment(2)			Loans Acquired with Deteriorated Credit Quality(3)			Total
As of December 31, 2012
Loans	$	1,095,957		$	1,210,077		$	58,281		$	2,364,315
Less: Reserve for loan losses	(472,058		)	(33,100		)	(19,341		)	(524,499		)
Total	$	623,899		$	1,176,977		$	38,940		$	1,839,816
As of December 31, 2011
Loans	$	1,525,337		$	1,919,876		$	59,648		$	3,504,861
Less: Reserve for loan losses	(554,131		)	(73,500		)	(18,993		)	(646,624		)
Total	$	971,206		$	1,846,376		$	40,655		$	2,858,237

Explanatory Notes:

_______________________________________________________________________________

(1)

The carrying value of these loans include unamortized discounts, premiums, deferred fees and costs aggregating to a net discount of $4.0 million and a net premium of $0.1 million as of December 31, 2012 and 2011, respectively. The Company's loans individually evaluated for impairment primarily represent loans on non-accrual status and therefore, the unamortized amounts associated with these loans are not currently being amortized into income.


(2)	The carrying value of these loans include unamortized discounts, premiums, deferred fees and costs aggregating to a net discount of $3.8 million and $0.2 million as of December 31, 2012 and 2011, respectively.


(3)	The carrying value of these loans include unamortized discounts, premiums, deferred fees and costs aggregating to a net premium of $0.1 million and a net discount of $15.0 million as of December 31, 2012 and 2011, respectively. These loans had cumulative principal balances of $58.8 million and $74.5 million, as of December 31, 2012 and 2011, respectively.

Schedule of investment in performing loans, presented by class and by credit quality, as indicated by risk rating

The Company's recorded investment in performing loans, presented by class and by credit quality, as indicated by risk rating, was as follows ($ in thousands):



	As of
	December 31, 2012			December 31, 2011
	Performing Loans		Weighted Average Risk Ratings	Performing Loans		Weighted Average Risk Ratings
Senior mortgages	$	840,593	2.75	$	1,514,016	3.19
Subordinate mortgages	99,698		2.27	190,342		3.36
Corporate/Partnership loans	444,772		3.69	472,178		3.61
Total	$	1,385,063	3.01	$	2,176,536	3.29

Schedule of recorded investment in loans, aged by payment status and presented by class

As of December 31, 2012, the Company's recorded investment in loans, aged by payment status and presented by class, were as follows ($ in thousands):



	Current		Less Than and Equal to 90 Days		Greater Than 90 Days		Total Past Due		Total
Senior mortgages	$	862,082	$	62,768	$	830,906	$	893,674	$	1,755,756
Subordinate mortgages	99,698		—		53,979		53,979		153,677
Corporate/Partnership loans	444,772		—		10,110		10,110		454,882
Total	$	1,406,552	$	62,768	$	894,995	$	957,763	$	2,364,315

Schedule of recorded investment in impaired loans, presented by class

Impaired Loans—The Company's recorded investment in impaired loans, presented by class, were as follows ($ in thousands)(1):



	As of December 31, 2012							As of December 31, 2011
	Recorded Investment		Unpaid Principal Balance		Related Allowance			Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Senior mortgages	$	108,077	$	107,850	$	—		$	219,488	$	218,612	$	—
Corporate/Partnership loans	10,110		10,160		—			10,110		10,160		—
Subtotal	$	118,187	$	118,010	$	—		$	229,598	$	228,772	$	—
With an allowance recorded:
Senior mortgages	$	918,975	$	918,496	$	(442,760	)	$	1,268,962	$	1,263,195	$	(540,670	)
Subordinate mortgages	53,979		53,679		(39,579		)	22,480		22,558		(22,480		)
Corporate/Partnership loans	63,096		63,246		(9,060		)	62,591		62,845		(9,974		)
Subtotal	$	1,036,050	$	1,035,421	$	(491,399	)	$	1,354,033	$	1,348,598	$	(573,124	)
Total:
Senior mortgages	$	1,027,052	$	1,026,346	$	(442,760	)	$	1,488,450	$	1,481,807	$	(540,670	)
Subordinate mortgages	53,979		53,679		(39,579		)	22,480		22,558		(22,480		)
Corporate/Partnership loans	73,206		73,406		(9,060		)	72,701		73,005		(9,974		)
Total	$	1,154,237	$	1,153,431	$	(491,399	)	$	1,583,631	$	1,577,370	$	(573,124	)

Explanatory Note:

_______________________________________________________________________________


(1)	All of the Company's non-accrual loans are considered impaired and included in the table above. In addition, as of December 31, 2012 and 2011, certain loans modified through troubled debt restructurings with a recorded investment of $175.0 million and $255.3 million, respectively, are also included as impaired loans in accordance with GAAP although they are performing and on accrual status.

Schedule of average recorded investment in impaired loans and interest income recognized, presented by class

The Company's average recorded investment in impaired loans and interest income recognized, presented by class, were as follows ($ in thousands):



	For the Years Ended December 31,
	2012				2011				2010
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Senior mortgages	$	162,093	$	2,765	$	309,079	$	31,799	$	659,150	$	20,472
Subordinate mortgages	—		—		—		—		1,404		87
Corporate/Partnership loans	10,110		160		10,110		680		27,526		1,868
Subtotal	$	172,203	$	2,925	$	319,189	$	32,479	$	688,080	$	22,427
With an allowance recorded:
Senior mortgages	$	1,064,045	$	3,865	$	1,608,486	$	7,187	$	2,411,735	$	5,183
Subordinate mortgages	52,208		—		19,477		—		77,125		107
Corporate/Partnership loans	62,248		312		66,087		332		65,118		—
Subtotal	$	1,178,501	$	4,177	$	1,694,050	$	7,519	$	2,553,978	$	5,290
Total:
Senior mortgages	$	1,226,138	$	6,630	$	1,917,565	$	38,986	$	3,070,885	$	25,655
Subordinate mortgages	52,208		—		19,477		—		78,529		194
Corporate/Partnership loans	72,358		472		76,197		1,012		92,644		1,868
Total	$	1,350,704	$	7,102	$	2,013,239	$	39,998	$	3,242,058	$	27,717

Schedule of troubled debt restructurings, presented by class

The recorded investment in these loans was impacted by the modifications as follows, presented by class ($ in thousands):



	For the Years Ended December 31,
	2012					2011
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Senior mortgages	8	$	319,667	$	272,753	7	$	191,158	$	190,893

Schedule of troubled debt restructurings that subsequently defaulted

Troubled debt restructurings that subsequently defaulted during the period were as follows ($ in thousands):



	For the Years Ended December 31,
	2012			2011
	Number of Loans	Outstanding Recorded Investment		Number of Loans	Outstanding Recorded Investment
Senior mortgages	1	$	18,511	1	$	28,005