XML 83 R34.htm IDEA: XBRL DOCUMENT

Loans Receivable and Other Lending Investments, net (Tables)

3 Months Ended

Mar. 31, 2020

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

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



	As of
	March 31, 2020			December 31, 2019
Construction loans
Senior mortgages	$	542,241		$	518,992
Corporate/Partnership loans	99,702			95,394
Subtotal - gross carrying value of construction loans	641,943			614,386
Loans
Senior mortgages	53,319			53,592
Corporate/Partnership loans	23,321			24,424
Subordinate mortgages	11,063			10,877
Subtotal - gross carrying value of loans	87,703			88,893
Other lending investments
Financing receivables (refer to Note 5)	44,445			44,339
Held-to-maturity debt securities	86,368			84,981
Available-for-sale debt securities	23,640			23,896
Subtotal - other lending investments	154,453			153,216
Total gross carrying value of loans receivable and other lending investments	884,099			856,495
Allowance for loan losses	(33,264		)	(28,634		)
Total loans receivable and other lending investments, net	$	850,835		$	827,861

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

Changes in the Company's allowance for loan losses were as follows for the three months ended March 31, 2020 ($ in thousands):



	General Allowance
		Construction Loans			Loans		Held to Maturity Debt Securities		Financing Receivables		Specific Allowance		Total
Allowance for loan losses at beginning of period		$	6,668		$	265	$	—	$	—	$	21,701	$	28,634
Adoption of new accounting standard⁽¹⁾		(353		)	98		20		964		—		729
Provision for loan losses⁽²⁾		3,409			323		33		136		—		3,901
Allowance for loan losses at end of period		$	9,724		$	686	$	53	$	1,100	$	21,701	$	33,264

____________________________________________________________


(1)	On January 1, 2020, the Company recorded an increase to its allowance for loan losses of $3.3 million upon the adoption of ASU 2016-13 (refer to Note 3), of which $2.5 million related to expected credit losses for unfunded loan commitments and was recorded in "Accounts payable, accrued expenses and other liabilities."


(2)	During the three months ended March 31, 2020, the Company recorded a provision for loan losses of $4.0 million due to the adoption of ASU 2016-13 (refer to Note 3), of which $0.1 million related to expected credit losses for unfunded loan commitments and was recorded in "Accounts payable, accrued expenses and other liabilities."

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

The Company's investment in loans and other lending investments and the associated allowance for loan losses were as follows as of March 31, 2020 and December 31, 2019 ($ in thousands):



	Individually Evaluated for Impairment⁽¹⁾			Collectively Evaluated for Impairment			Total
As of March 31, 2020
Construction loans⁽²⁾	$	—		$	641,943		$	641,943
Loans⁽²⁾	37,517			50,186			87,703
Financing receivables	—			44,445			44,445
Held-to-maturity debt securities	—			86,368			86,368
Available-for-sale debt securities⁽³⁾	—			23,640			23,640
Less: Allowance for loan losses	(21,701		)	(11,563		)	(33,264		)
Total	$	15,816		$	835,019		$	850,835
As of December 31, 2019
Construction loans⁽²⁾	$	—		$	614,386		$	614,386
Loans⁽²⁾	37,820			51,073			88,893
Financing receivables	—			44,339			44,339
Held-to-maturity debt securities	—			84,981			84,981
Available-for-sale debt securities⁽³⁾	—			23,896			23,896
Less: Allowance for loan losses	(21,701		)	(6,933		)	(28,634		)
Total	$	16,119		$	811,742		$	827,861

_______________________________________________________________________________


(1)	The carrying value of this loan includes an unamortized discount of $0.1 million as of March 31, 2020 and December 31, 2019. The Company's one loan individually evaluated for impairment represents a loan on non-accrual status; therefore, the unamortized amount associated with this loan is not currently being amortized into income.


(2)	The carrying value of these loans include unamortized discounts, premiums, deferred fees and costs totaling net discounts of $0.2 million and $0.7 million as of March 31, 2020 and December 31, 2019, respectively.


(3)	Available-for-sale debt securities are evaluated for impairment under ASC 326-30.

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

The Company's amortized cost basis in performing senior mortgages, corporate/partnership loans, subordinate mortgages and financing receivables, presented by year of origination and by credit quality, as indicated by risk rating, as of March 31, 2020 were as follows ($ in thousands):



	Year of Origination
	2020		2019		2018		2017		2016		Prior to 2016		Total
Senior mortgages
Risk rating
1	$	—	$	—	$	—	$	54,420	$	—	$	—	$	54,420
2	—		—		84,662		96,549		—		—		181,211
3	—		12,803		170,860		47,859		37,767		4,524		273,813
3.5	—		—		—		48,599		—		—		48,599
Subtotal⁽¹⁾	$	—	$	12,803	$	255,522	$	247,427	$	37,767	$	4,524	$	558,043
Corporate/partnership loans
Risk rating
1	$	—	$	—	$	—	$	8,205	$	—	$	—	$	8,205
2	—		938		17,708		—		—		—		18,646
3	—		—		58,405		—		37,767		—		96,172
Subtotal	$	—	$	938	$	76,113	$	8,205	$	37,767	$	—	$	123,023
Subordinate mortgages
Risk rating
3	$	—	$	—	$	—	$	—	$	—	$	11,063	$	11,063
Subtotal	$	—	$	—	$	—	$	—	$	—	$	11,063	$	11,063
Financing receivables
Risk rating
1.5	$	—	$	44,445	$	—	$	—	$	—	$	—	$	44,445
Subtotal	$	—	$	44,445	$	—	$	—	$	—	$	—	$	44,445
Total	$	—	$	58,186	$	331,635	$	255,632	$	75,534	$	15,587	$	736,574

____________________________________________________________


(1)	As of March 31, 2020, excludes $37.5 million for one loan on non-accrual status.

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

The Company's amortized cost basis in loans, aged by payment status and presented by class, was as follows ($ in thousands):



	Current		Less Than and Equal to 90 Days		Greater Than 90 Days⁽¹⁾		Total Past Due		Total
As of March 31, 2020
Senior mortgages	$	558,043			$	37,517	$	37,517	$	595,560
Corporate/Partnership loans	123,023		—		—		—		123,023
Subordinate mortgages	11,063		—		—		—		11,063
Total	$	692,129	$	—	$	37,517	$	37,517	$	729,646
As of December 31, 2019
Senior mortgages	$	534,765	$	—	$	37,820	$	37,820	$	572,585
Corporate/Partnership loans	119,818		—		—		—		119,818
Subordinate mortgages	10,877		—		—		—		10,877
Total	$	665,460	$	—	$	37,820	$	37,820	$	703,280

_______________________________________________________________________________

(1)

As of March 31, 2020 and December 31, 2019, the Company had one loan which was greater than 90 days delinquent and was in various stages of resolution, including legal and environmental matters, and was 10.8 years and 10.5 years outstanding, respectively.

Schedule of recorded investment in impaired loans

The Company's impaired loan was as follows ($ in thousands)⁽¹⁾:



	As of March 31, 2020							As of December 31, 2019
	Amortized Cost		Unpaid Principal Balance		Related Allowance			Amortized Cost		Unpaid Principal Balance		Related Allowance
With an allowance recorded:
Senior mortgages	$	37,517	$	37,618	$	(21,701	)	$	37,820	$	37,923	$	(21,701	)
Total	$	37,517	$	37,618	$	(21,701	)	$	37,820	$	37,923	$	(21,701	)

____________________________________________________________


(1)	All of the Company's non-accrual loans are considered impaired and included in the table above.

(2)

The Company did not record any interest income on impaired loans for the three months ended March 31, 2020 and 2019.

Schedule of available-for-sale securities

Other lending investments includes the following securities ($ in thousands):



	Face Value		Amortized Cost Basis		Net Unrealized Gain		Estimated Fair Value		Net Carrying Value
As of March 31, 2020
Available-for-Sale Securities
Municipal debt securities	$	20,680	$	20,680	$	2,960	$	23,640	$	23,640
Held-to-Maturity Securities
Debt securities	100,000		86,368		—		86,368		86,368
Total	$	120,680	$	107,048	$	2,960	$	110,008	$	110,008
As of December 31, 2019
Available-for-Sale Securities
Municipal debt securities	$	21,140	$	21,140	$	2,756	$	23,896	$	23,896
Held-to-Maturity Securities
Debt securities	100,000		84,981		—		84,981		84,981
Total	$	121,140	$	106,121	$	2,756	$	108,877	$	108,877

Schedule of held-to-maturity securities

Other lending investments includes the following securities ($ in thousands):



	Face Value		Amortized Cost Basis		Net Unrealized Gain		Estimated Fair Value		Net Carrying Value
As of March 31, 2020
Available-for-Sale Securities
Municipal debt securities	$	20,680	$	20,680	$	2,960	$	23,640	$	23,640
Held-to-Maturity Securities
Debt securities	100,000		86,368		—		86,368		86,368
Total	$	120,680	$	107,048	$	2,960	$	110,008	$	110,008
As of December 31, 2019
Available-for-Sale Securities
Municipal debt securities	$	21,140	$	21,140	$	2,756	$	23,896	$	23,896
Held-to-Maturity Securities
Debt securities	100,000		84,981		—		84,981		84,981
Total	$	121,140	$	106,121	$	2,756	$	108,877	$	108,877

Schedule of contractual maturities of securities

As of March 31, 2020, the contractual maturities of the Company's securities were as follows ($ in thousands):



	Held-to-Maturity Debt Securities				Available-for-Sale Debt Securities
	Amortized Cost Basis		Estimated Fair Value		Amortized Cost Basis		Estimated Fair Value
Maturities
Within one year	$	—	$	—	$	—	$	—
After one year through 5 years	86,368		86,368		—		—
After 5 years through 10 years	—		—		—		—
After 10 years	—		—		20,680		23,640
Total	$	86,368	$	86,368	$	20,680	$	23,640