Debt and Preferred Equity Investments (Tables)

6 Months Ended

Jun. 30, 2014

Investments, Debt and Equity Securities [Abstract]

As of June 30, 2014 and December 31, 2013, we held the following debt investments with an aggregate weighted average current yield of 10.69% at June 30, 2014 (in thousands):



Loan Type	June 30, 2014 Funding Obligations		June 30, 2014 Senior Financing		June 30, 2014 Carrying Value(1)		December 31, 2013 Carrying Value(1)			Initial Maturity Date
Fixed Rate Investments:
Jr. Mortgage Participation	$	—	$	398,500	$	11,893	$	11,856		March 2015
Jr. Mortgage Participation/Mezzanine Loan	—		205,000		69,480		68,319			February 2016
Jr. Mortgage Participation/Mezzanine Loan	—		165,159		45,137		44,742			May 2016
Mezzanine Loan	—		177,000		14,519		15,012			May 2016
Jr. Mortgage Participation	—		133,000		49,000		49,000			June 2016
Mezzanine Loan	—		165,000		71,430		71,312			November 2016
Jr. Mortgage Participation/Mezzanine Loan⁽²⁾	—		1,109,000		95,329		26,884			March 2017
Other(2)	—		—		65,578		54,099			March 2017
Mezzanine Loan⁽³⁾	19,725		521,750		21,267		20,954			June 2017
Mortgage Loan	—		—		696		—			August 2019
Mezzanine Loan	—		15,000		3,500		3,500			September 2021
Mezzanine Loan⁽⁴⁾	—		90,000		19,928		19,926			November 2023
Total fixed rate	$	19,725	$	2,979,409	$	467,757	$	385,604
Floating Rate Investments:
Jr. Mortgage Participation/Mezzanine Loan⁽⁵⁾	—		330,000		131,987		131,724			July 2014
Mezzanine Loan⁽⁶⁾	—		180,000		59,974		59,892			August 2014
Jr. Mortgage Participation⁽⁷⁾	—		57,750		10,875		10,873			August 2014
Mezzanine Loan⁽⁸⁾	—		481,309		19,487		—			September 2014
Mezzanine Loan	9,794		93,279		40,125		38,549			October 2014
Jr. Mortgage Participation⁽⁹⁾	—		84,000		24,959		24,046			February 2015
Mezzanine Loan	22,817		50,000		22,002		—			April 2015
Mortgage/Mezzanine Loan	—		—		108,981		—			June 2015
Mezzanine Loan	—		110,000		49,354		49,110			September 2015
Mezzanine Loan	9,215		107,157		40,662		27,662			December 2015
Mezzanine Loan	—		775,000		73,326		72,823			March 2016
Mezzanine Loan⁽¹⁰⁾	—		160,000		22,549		22,526			June 2016
Mezzanine Loan	—		115,000		24,907		25,590			July 2016
Mezzanine Loan	10,584		168,485		26,655		25,725			November 2016
Mezzanine Loan	333		33,833		11,816		11,798			December 2016
Jr. Mortgage Participation/Mezzanine Loan	—		55,000		20,544		20,553			July 2018
Mortgage/Mezzanine Loan	—		—		17,923		—			February 2019
Mezzanine Loan	—		38,000		21,789		—			March 2019
Mortgage Loan⁽¹¹⁾	—		—		—		30,000
Total floating rate	$	52,743	$	2,838,813	$	727,915	$	550,871
Total	$	72,468	$	5,818,222	1,195,672		936,475
Loan loss reserve					—		(1,000		)
Total					$	1,195,672	$	935,475

______________________________________________________________________


(1)	Carrying value is net of discounts, original issue discounts and deferred origination fees.

(2)

During the three months ended March 31, 2014, we recognized $10.1 million of previously unaccrued interest income as deemed collectible as a result of the subsequent sale of the property, which closed in June 2014. In connection with the sale of the underlying property, our existing $66.7 million mezzanine loan was defeased and is now shown separately, as it is collateralized by defeasance securities. The buyer assumed our $30.0 million participating interest on the mortgage and we acquired a $67.3 million participating interest on the mezzanine loan.


(3)	Carrying value is net of $41.3 million that was participated out, which is included in other assets and other liabilities on the consolidated balance sheets as a result of the transfer not meeting the conditions for sale accounting.


(4)	Carrying value is net of $5.0 million that was participated out, which is included in other assets and other liabilities on the consolidated balance sheets as a result of the transfer not meeting the conditions for sale accounting.


(5)	This loan was repaid in July 2014.


(6)	This loan was repaid in August 2014.


(7)	In June 2014, the loan maturity date was extended to August 2014 and $10.8 million has been repaid.


(8)	This loan was previously included in other assets on the consolidated balance sheets. Following the sale of our interest in the partnership that is the borrower, the loan was reclassified to debt and preferred equity investments.


(9)	In March 2014, the loan was extended to February 2015.


(10)	Carrying value is net of $7.4 million that was participated out, which is included in other assets and other liabilities on the consolidated balance sheets as a result of the transfer not meeting the conditions for sale accounting.


(11)	This loan was repaid in May 2014.

Summary of preferred equity investments

As of June 30, 2014 and December 31, 2013, we held the following preferred equity investments with an aggregate weighted average current yield of 9.75% at June 30, 2014 (in thousands):



Type	June 30, 2014 Senior Financing		June 30, 2014 Carrying Value (1)		December 31, 2013 Carrying Value (1)		Initial Mandatory Redemption
Preferred equity⁽²⁾	$	525,000	$	119,197	$	115,198	July 2015
Preferred equity⁽²⁾	926,260		222,992		218,330		July 2016
Preferred equity	70,000		9,947		9,940		November 2017
Preferred equity⁽³⁾	—		—		25,896
	$	1,521,260	$	352,136	$	369,364

______________________________________________________________________


(1)	Carrying value is net of discounts and deferred origination fees.


(2)	The difference between the pay and accrual rates is included as an addition to the principal balance outstanding.


(3)	This preferred equity investment was redeemed in April 2014.

Rollforward of total allowance for loan loss reserves

The following table is a rollforward of our total loan loss reserves at June 30, 2014 and December 31, 2013 (in thousands):



	June 30, 2014			December 31, 2013
Balance at beginning of year	$	1,000		$	7,000
Expensed	—			—
Recoveries	—			—
Charge-offs and reclassifications	(1,000		)	(6,000		)
Balance at end of period	$	—		$	1,000