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Debt and Preferred Equity Investments (Tables)
 12 Months Ended
Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Schedule of Activity in Debt and Preferred Equity Investments
Below is a summary of the activity in our debt and preferred equity investments for the years ended December 31, 2023 and 2022 (in thousands):
December 31, 2023December 31, 2022
Balance at beginning of year (1)
$623,280 $1,088,723 
Debt investment originations/fundings/accretion (2)
72,160 62,992 
Preferred equity investment originations/accretion (2)
8,142 37,505 
Redemptions/sales/syndications/equity ownership/amortization(349,947)(565,940)
Net change in loan loss reserves(6,890)— 
Balance at end of period (1)
$346,745 (3)$623,280 
(1)Net of unamortized fees, discounts, and premiums.
(2)Accretion includes amortization of fees and discounts and paid-in-kind investment income.
(3)Includes two investments with a total carrying value of $49.8 million that are included in the Company's alternative strategy portfolio.
Schedule of Debt and Preferred Equity Investments
Below is a summary of our debt and preferred equity investments as of December 31, 2023 (dollars in thousands):
Floating RateFixed RateTotal Carrying ValueSenior Financing
Maturity(1)
TypeCarrying ValueFace ValueInterest RateCarrying ValueFace ValueInterest Rate
Mezzanine Debt$168,745 $168,912 
S + 4.95 - 12.38%
$50,000 $50,000 
8.00 - 8.40%
$218,745 (2)$1,071,858 2024 - 2029
Preferred Equity— — —128,000 128,000 6.5%128,000 250,000 2027 
Balance at end of period$168,745 $168,912 $178,000 $178,000 $346,745 $1,321,858 
(1)Excludes available extension options to the extent they have not been exercised as of the date of this filing.
(2)Includes two investments with a total carrying value of $49.8 million that are included in the Company's alternative strategy portfolio.
Schedule of Roll Forward of our Total Allowance for Loan Losses
The following table is a roll forward of our total allowance for loan losses for the years ended December 31, 2023, 2022 and 2021 (in thousands):
Year Ended December 31,
202320222021
Balance at beginning of year$6,630 $6,630 $13,213 
Current period provision for loan loss6,890 — — 
Write-offs charged against the allowance— — (6,583)
Balance at end of period$13,520 (1)$6,630 $6,630 
(1)As of December 31, 2023, all financing receivables on non-accrual had an allowance for loan loss except for one debt investment with a carrying value of $49.8 million, which is included in the Company's alternative strategy portfolio.
Schedule of Carrying Value of Debt and Preferred Equity Investment Portfolio by Year of Origination and Risk Rating
The following table sets forth the carrying value of our debt and preferred equity investment portfolio by risk rating as of December 31, 2023 and 2022 (dollars in thousands):
Risk RatingDecember 31, 2023December 31, 2022
1 - Low Risk Assets - Low probability of loss
$210,333 $264,069 
2 - Watch List Assets - Higher potential for loss
136,412 (1)352,321 
3 - High Risk Assets - Loss more likely than not
— 6,890 
$346,745 $623,280 
(1)Includes two investments with a total carrying value of $49.8 million that are included in the Company's alternative strategy portfolio.
The following table sets forth the carrying value of our debt and preferred equity investment portfolio by year of origination and risk rating as of December 31, 2023 (dollars in thousands):
As of December 31,
Risk Rating
2023(1)
2022(1)
2021(1)
Prior(1)(2)
Total
1 - Low Risk Assets - Low probability of loss
$— $— $— $210,333 $210,333 
2 - Watch List Assets - Higher potential for loss
— — — 136,412 (3)136,412 
3 - High Risk Assets - Loss more likely than not
— — — — — 
$— $— $— $346,745 $346,745 
(1)Year in which the investment was originated or acquired by us or in which a material modification occurred.
(2)During the year ended December 31, 2023, we recognized a $6.9 million provision for loan loss related to an investment originated prior to 2021.
(3)Includes two investments with a total carrying value of $49.8 million that are included in the Company's alternative strategy portfolio.
Schedule of Debt Investments with an Aggregate Weighted Average Current Yield
As of December 31, 2023 and 2022, we held the following debt investments with an aggregate weighted average current yield of 8.68% as of December 31, 2023 (dollars in thousands):
December 31, 2023December 31, 2022
Loan TypeFuture Funding ObligationsSenior Financing
Carrying Value (1)
Carrying Value (1)
Maturity
Date (2)
Fixed Rate Investments:
Mezzanine Loan (3) (4) (6)
$— $105,000 $13,366 $13,366 June 2024
Mezzanine Loan— 95,000 30,000 30,000 January 2025
Mezzanine Loan— 85,000 20,000 20,000 December 2029
Mezzanine Loan— — — 225,367 
Mezzanine Loan — — — 77,109 
Total fixed rate$— $285,000 $63,366 $365,842  
Floating Rate Investments:
Mezzanine Loan (5) (6)
$— $275,000 $50,000 $50,000 April 2023
Mezzanine Loan3,761 54,000 8,243 8,243 May 2024
Mezzanine Loan2,655 271,774 62,333 46,884 May 2024
Mezzanine Loan10,760 186,084 48,323 39,083 January 2026
Total floating rate$17,176 $786,858 $168,899 $144,210  
Allowance for loan loss$— $— $(13,520)$(6,630)
Total$17,176 $1,071,858 $218,745 $503,422 
(1)Carrying value is net of discounts, premiums, original issue discounts and deferred origination fees.
(2)Represents contractual maturity, excluding any extension options to the extent they have not been exercised as of the date of this filing.
(3)Carrying value is net of a $12.0 million participation that was sold and did not meet the conditions for sale accounting, which is included in Other assets and Other liabilities on the consolidated balance sheets.
(4)This loan went into default and was put on non-accrual in June 2020 and remains on non-accrual as of December 31, 2023. No investment income has been recognized subsequent to it being put on non-accrual. In the first quarter of 2023, the Company fully reserved the balance of the investment. Additionally, we determined the borrower entity to be a VIE, in which we are not the primary beneficiary.
(5)This loan went into default and was put on non-accrual in January 2023 and remains on non-accrual as of December 31, 2023. No investment income has been recognized subsequent to it being put on non-accrual. The Company is in discussions with the borrower with respect to the loan.
(6)Included in the Company's alternative strategy portfolio.
Schedule of Preferred Equity Investments with an Aggregate Weighted Average Current Yield
As of December 31, 2023 and 2022, we held the following preferred equity investments with an aggregate weighted average current yield of 6.55% as of December 31, 2023 (dollars in thousands):
December 31, 2023December 31, 2022
TypeFuture Funding
Obligations		Senior
Financing
Carrying Value (1)
Carrying Value (1)
Mandatory
Redemption (2)
Preferred Equity $— $250,000 $128,000 $119,858 February 2027
Total$— $250,000 $128,000 $119,858 
(1)Carrying value is net of deferred origination fees.
(2)Represents contractual redemption, excluding any unexercised extension options.