XML 28 R16.htm IDEA: XBRL DOCUMENT
v3.20.4

Loans Receivable and Other Lending Investments, net | 12 Months Ended
--- | ---
Dec. 31, 2020
Receivables [Abstract] |
Loans Receivable and Other Lending Investments, net | Loans Receivable and Other Lending Investments, net The following is a summary of the Company's loans receivable and other lending investments by class ($ in thousands):
| As of December 31,
Construction loans | 2020 |  | 2019
Senior mortgages | $ | 449,733 |  |  | $ | 518,992 |
Corporate/Partnership loans | 65,100 |  |  | 95,394 |
Subtotal - gross carrying value of construction loans(1) | 514,833 |  |  | 614,386 |
Loans |  |  |
Senior mortgages | 35,922 |  |  | 53,592 |
Corporate/Partnership loans | 20,567 |  |  | 24,424 |
Subordinate mortgages | 11,640 |  |  | 10,877 |
Subtotal - gross carrying value of loans | 68,129 |  |  | 88,893 |
Other lending investments |  |  |
Financing receivables (refer to Note 5) | 46,549 |  |  | 44,339 |
Held-to-maturity debt securities | 90,715 |  |  | 84,981 |
Available-for-sale debt securities | 25,274 |  |  | 23,896 |
Subtotal - other lending investments | 162,538 |  |  | 153,216 |
Total gross carrying value of loans receivable and other lending investments | 745,500 |  |  | 856,495 |
Allowance for loan losses | (13,170) |  |  | (28,634) |
Total loans receivable and other lending investments, net | $ | 732,330 |  |  | $ | 827,861 |
_______________________________________________________________________________ (1)As of December 31, 2020, 47%, or $241.8 million, gross carrying value of construction loans had completed construction and 5%, or $24.6 million, gross carrying value of construction loans had substantially completed construction. Allowance for Loan Losses—Changes in the Company's allowance for loan losses were as follows for the year ended December 31, 2020 ($ 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) |  |  |  | 226 |  |  | 1,280 |  |  | 3,073 |  |  | 186 |  |  | 4,931 |  |  | 9,696 |
Charge-offs(3) |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (25,889) |  |  | (25,889) |
Allowance for loan losses at end of period |  |  |  | $ | 6,541 |  |  | $ | 1,643 |  |  | $ | 3,093 |  |  | $ | 1,150 |  |  | $ | 743 |  |  | $ | 13,170 |
____________________________________________________________ (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 year ended December 31, 2020, the Company recorded a provision for loan losses of $9.1 million in its consolidated statement of operations resulting from the macroeconomic impact of the COVID-19 pandemic on commercial real estate markets, of which $1.5 million related to a recovery of credit losses for unfunded loan commitments and is recorded as a reduction to "Accounts payable, accrued expenses and other liabilities" and $0.9 million related to a provision on a non-performing loan that was recorded as a reduction to "Accrued interest and operating lease income receivable, net." (3)During the year ended December 31,2020, the Company charged-off $25.9 million from the specific allowance due to the sale of a non-performing loan. During the year ended December 31, 2019, the Company charged-off $19.2 million from the specific allowance due to the resolution of a non-performing loan and $12.0 million due to the deterioration of the collateral on a separate non-performing loan. The Company's investment in loans and other lending investments and the associated allowance for loan losses were as follows ($ in thousands):
| Individually Evaluated for Impairment(1) |  | Collectively Evaluated for Impairment |  |  |  | Total
As of December 31, 2020 |  |  |  |  |  |  |
Construction loans(2) | $ | 53,305 |  |  | $ | 461,528 |  |  |  |  | $ | 514,833 |
Loans(2) | — |  |  | 68,129 |  |  |  |  | 68,129 |
Financing receivables | — |  |  | 46,549 |  |  |  |  | 46,549 |
Held-to-maturity debt securities | — |  |  | 90,715 |  |  |  |  | 90,715 |
Available-for-sale debt securities(3) | — |  |  | 25,274 |  |  |  |  | 25,274 |
Less: Allowance for loan losses | (743) |  |  | (12,427) |  |  |  |  | (13,170) |
Total | $ | 52,562 |  |  | $ | 679,768 |  |  |  |  | $ | 732,330 |
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 | — |  |  | 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 these loans includes an unamortized net discount of $0.8 million and $0.1 million as of December 31, 2020 and 2019, respectively. The Company's loans individually evaluated for impairment represents loans on non-accrual status; therefore, the unamortized amounts associated with these loans are not currently being amortized into income. (2)The carrying value of these loans includes an unamortized net discount of $2.3 million and $0.7 million as of December 31, 2020 and 2019, respectively. (3)Available-for-sale debt securities are evaluated for impairment under ASC 326-30. Credit Characteristics—As part of the Company's process for monitoring the credit quality of its loans, it performs a quarterly loan portfolio assessment and assigns risk ratings to each of its performing loans. Risk ratings, which range from 1 (lower risk) to 5 (higher risk), are based on judgments which are inherently uncertain and there can be no assurance that actual performance will be similar to current expectation. The Company's amortized cost basis in performing senior mortgages, corporate/partnership loans, subordinate mortgages and financing receivables, presented by year of origination and by credit quality, as indicated by risk rating, was as follows as of December 31, 2020 ($ in thousands):
|  | Year of Origination |  |  |
|  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | 2016 |  | Prior to 2016 |  | Total |
Senior mortgages |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1.0 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |
1.5 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |
2.0 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |
2.5 |  | — |  |  | — |  |  | 58,070 |  |  | — |  |  | — |  |  | — |  |  | 58,070 |  |
3.0 |  | 20,115 |  |  | — |  |  | 109,121 |  |  | 145,585 |  |  | 42,502 |  |  | 3,925 |  |  | 321,248 |  |
3.5 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |
4.0 |  | — |  |  | — |  |  | 53,033 |  |  | — |  |  | — |  |  | — |  |  | 53,033 |  |
4.5 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |
5.0 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |
Subtotal(1) |  | $ | 20,115 |  |  | $ | — |  |  | $ | 220,224 |  |  | $ | 145,585 |  |  | $ | 42,502 |  |  | $ | 3,925 |  |  | $ | 432,351 |  |
Corporate/partnership loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1.0 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |
1.5 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |
2.0 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |
2.5 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |
3.0 |  | — |  |  | — |  |  | 22,155 |  |  | — |  |  | — |  |  | — |  |  | 22,155 |  |
3.5 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |
4.0 |  | — |  |  | — |  |  | 20,567 |  |  | — |  |  | 42,945 |  |  | — |  |  | 63,512 |  |
4.5 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |
5.0 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |
Subtotal |  | $ | — |  |  | $ | — |  |  | $ | 42,722 |  |  | $ | — |  |  | $ | 42,945 |  |  | $ | — |  |  | $ | 85,667 |  |
Subordinate mortgages |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1.0 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |
1.5 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |
2.0 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |
2.5 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |
3.0 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 11,640 |  |  | 11,640 |  |
3.5 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |
4.0 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |
4.5 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |
5.0 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |
Subtotal |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 11,640 |  |  | $ | 11,640 |  |
Financing receivables |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1.0 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |
1.5 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |
2.0 |  | — |  |  | 46,549 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 46,549 |  |
2.5 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |
3.0 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |
3.5 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |
4.0 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |
4.5 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |
5.0 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |
Subtotal |  | $ | — |  |  | $ | 46,549 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 46,549 |  |
Total |  | $ | 20,115 |  |  | $ | 46,549 |  |  | $ | 262,946 |  |  | $ | 145,585 |  |  | $ | 85,447 |  |  | $ | 15,565 |  |  | $ | 576,207 |  |
____________________________________________________________ (1)As of December 31, 2020, excludes $53.3 million for one loan on non-accrual status. The Company's amortized cost basis in loans, aged by payment status and presented by class, was as follows ($ in thousands):
As of December 31, 2020 | Current |  | Less Than and Equal to 90 Days |  | Greater Than 90 Days |  | Total Past Due |  | Total
Senior mortgages | $ | 443,154 |  |  | $ | 42,501 |  |  | $ | — |  |  | $ | 42,501 |  |  | $ | 485,655 |
Corporate/Partnership loans | 42,721 |  |  | 42,946 |  |  | — |  |  | 42,946 |  |  | 85,667 |
Subordinate mortgages | 11,640 |  |  | — |  |  | — |  |  | — |  |  | 11,640 |
Total | $ | 497,515 |  |  | $ | 85,447 |  |  | $ | — |  |  | $ | 85,447 |  |  | $ | 582,962 |
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 |
Impaired Loans—In the fourth quarter 2020, the Company sold a non-performing loan with a carrying value of $15.2 million and received proceeds of $11.0 million. In addition, the Company recorded a $4.2 million loan loss provision and simultaneously charged-off of the remaining unpaid balance. In the second quarter 2018, the Company resolved a non-performing loan with a carrying value of $145.8 million. The Company received a $45.8 million cash payment and a preferred equity investment with a face value of $100.0 million that is mandatorily redeemable in five years. The Company recorded the preferred equity at its fair value of $77.0 million and are accruing interest over the expected duration of the investment. In addition, the Company recorded a $21.4 million loan loss provision and simultaneously charged-off of the remaining unpaid balance. The Company's impaired loans, presented by class, were as follows ($ in thousands):
| As of December 31, 2020 |  | As of December 31, 2019
| Recorded Investment |  | Unpaid Principal Balance |  | Related Allowance |  | Recorded Investment |  | Unpaid Principal Balance |  | Related Allowance
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |
Senior mortgages(1) | $ | 53,305 |  |  | $ | 52,552 |  |  | $ | (743) |  |  | $ | 37,820 |  |  | $ | 37,923 |  |  | $ | (21,701) |
Total | $ | 53,305 |  |  | $ | 52,552 |  |  | $ | (743) |  |  | $ | 37,820 |  |  | $ | 37,923 |  |  | $ | (21,701) |
_______________________________________________________________________________ (1)The Company has one non-accrual loan as of December 31, 2020 and one non-accrual loan as of December 31, 2019 that are considered impaired and included in the table above. The Company did not record any interest income on impaired loans for the years ended December 31, 2020, 2019 and 2018. The Company's average recorded investment in impaired loans and interest income recognized, presented by class, was as follows ($ in thousands):
| Years Ended December 31, |  |  |  |
| 2020 |  | 2019 |  | 2018 |  |
| Average Recorded Investment |  | Interest Income Recognized |  | Average Recorded Investment |  | Interest Income Recognized |  | Average Recorded Investment |  | Interest Income Recognized |  |  |  |
With no related allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Subordinate mortgages | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 301 |  |  |  |  |
Subtotal | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 301 |  |  |  |  |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Senior mortgages | 50,205 |  |  | 2,145 |  |  | 38,556 |  |  | — |  |  | 67,041 |  |  | — |  |  |  |  |
Corporate/Partnership loans | — |  |  | — |  |  | — |  |  | — |  |  | 39,169 |  |  | — |  |  |  |  |
Subtotal | 50,205 |  |  | 2,145 |  |  | 38,556 |  |  | — |  |  | 106,210 |  |  | — |  |  |  |  |
Total: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Senior mortgages | 50,205 |  |  | 2,145 |  |  | 38,556 |  |  | — |  |  | 67,041 |  |  | — |  |  |  |  |
Corporate/Partnership loans | — |  |  | — |  |  | — |  |  | — |  |  | 39,169 |  |  | — |  |  |  |  |
Subordinate mortgages | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 301 |  |  |  |  |
Total | $ | 50,205 |  |  | $ | 2,145 |  |  | $ | 38,556 |  |  | $ | — |  |  | $ | 106,210 |  |  | $ | 301 |  |  |  |  |
Other lending investments—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 December 31, 2020 |  |  |  |  |  |  |  |  |
Available-for-Sale Securities |  |  |  |  |  |  |  |  |
Municipal debt securities | $ | 20,680 |  |  | $ | 20,680 |  |  | $ | 4,594 |  |  | $ | 25,274 |  |  | $ | 25,274 |
Held-to-Maturity Securities |  |  |  |  |  |  |  |  |
Debt securities | 100,000 |  |  | 90,715 |  |  | — |  |  | 90,715 |  |  | 90,715 |
Total | $ | 120,680 |  |  | $ | 111,395 |  |  | $ | 4,594 |  |  | $ | 115,989 |  |  | $ | 115,989 |
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 |
As of December 31, 2020, the contractual maturities of the Company's securities were as follows ($ in thousands):
| Held-to-Maturity Securities |  | Available-for-Sale Securities
| Amortized Cost Basis |  | Estimated Fair Value |  | Amortized Cost Basis |  | Estimated Fair Value
Maturities |  |  |  |  |  |  |
Within one year | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
After one year through 5 years | 90,715 |  |  | 90,715 |  |  | — |  |  | — |
After 5 years through 10 years | — |  |  | — |  |  | — |  |  | — |
After 10 years | — |  |  | — |  |  | 20,680 |  |  | 25,274 |
Total | $ | 90,715 |  |  | $ | 90,715 |  |  | $ | 20,680 |  |  | $ | 25,274 |

X
- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2196772 + Details
Name: | us-gaap_LoansNotesTradeAndOtherReceivablesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_ReceivablesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration