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Debt and Preferred Equity Investments (Tables)
 12 Months Ended
Dec. 31, 2024
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, 2024 and 2023 (in thousands):
December 31, 2024December 31, 2023
Balance at beginning of year (1)
$346,745 $623,280 
Debt investment originations/fundings/accretion (2)
12,890 72,160 
Preferred equity investment originations/accretion (2) (3)
8,720 8,142 
Redemptions/sales/syndications/equity ownership/amortization(64,629)(349,947)
Net change in loan loss reserves— (6,890)
Balance at end of period (1) (4)
$303,726 $346,745 
(1)Net of unamortized fees, discounts, and premiums.
(2)Accretion includes amortization of fees and discounts and paid-in-kind investment income.
(3)Excludes a $214.7 million preferred equity investment that is included in Investment in unconsolidated joint ventures in our consolidated balance sheet. See Note 6, "Investments in Unconsolidated Joint Ventures."
(4)Includes two investments with a total carrying value of $53.5 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, 2024 (dollars in thousands):
Floating RateFixed RateTotal Carrying ValueSenior Financing
Maturity(2)
TypeCarrying ValueFace ValueInterest Rate (1)Carrying ValueFace ValueInterest Rate
Mezzanine Debt$117,006 $117,160 
S + 5.06 - 11.75%
$50,000 $50,000 
8.00 - 8.40%
$167,006 (3)$812,021 2025 - 2029
Preferred Equity (4)
— — —136,720 136,720 6.5%136,720 250,000 2027 
Balance at end of period$117,006 $117,160 $186,720 $186,720 $303,726 $1,062,021 
(1)Floating interest rates are presented with the stated spread over Term SOFR ("S").
(2)Excludes available extension options to the extent they have not been exercised as of the date of this filing.
(3)Includes two investments with a total carrying value of $53.5 million that are included in the Company's alternative strategy portfolio.
(4)Excludes a $214.7 million preferred equity investment that is included in Investment in unconsolidated joint ventures in our consolidated balance sheet. See Note 6, "Investments in Unconsolidated Joint Ventures."
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, 2024, 2023 and 2022 (in thousands):
Year Ended December 31,
202420232022
Balance at beginning of year$13,520 $6,630 $6,630 
Current period provision for loan loss— 6,890 — 
Balance at end of period$13,520 (1)$13,520 (1)$6,630 
(1)As of December 31, 2024, all financing receivables on non-accrual had an allowance for loan loss except for one debt investment with a carrying value of $53.5 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, 2024 and 2023 (dollars in thousands):
Risk RatingDecember 31, 2024December 31, 2023
1 - Low Risk Assets - Low probability of loss
$156,720 $210,333 
2 - Watch List Assets - Higher potential for loss (1)
147,006 136,412 
3 - High Risk Assets - Loss more likely than not
— — 
$303,726 $346,745 
(1)Includes two investments with a total carrying value of $53.5 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, 2024 (dollars in thousands):
As of December 31,
Risk Rating
2024(1)
2023(1)
2022(1)
Prior(1)(2)
Total
1 - Low Risk Assets - Low probability of loss
$— $— $— $156,720 $156,720 
2 - Watch List Assets - Higher potential for loss
— — — 147,006 (3)147,006 
3 - High Risk Assets - Loss more likely than not
— — — — — 
$— $— $— $303,726 $303,726 
(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 $53.5 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, 2024 and 2023, we held the following debt investments with an aggregate weighted average current yield of 6.02% as of December 31, 2024 (dollars in thousands):
December 31, 2024December 31, 2023
Loan TypeFuture Funding ObligationsSenior Financing
Carrying Value (1)
Carrying Value (1)
Maturity
Date (2)
Fixed Rate Investments:
Mezzanine Loan (3) (4) (5)
$— $105,000 $13,366 $13,366 January 2025
Mezzanine Loan (6)
— 95,000 30,000 30,000 January 2025
Mezzanine Loan— 85,000 20,000 20,000 December 2029
Total fixed rate$— $285,000 $63,366 $63,366  
Floating Rate Investments:
Mezzanine Loan$— $54,000 $8,991 $8,243 July 2025
Mezzanine Loan (5) (7)
— 283,000 53,687 50,000 December 2025
Mezzanine Loan4,603 190,021 54,482 48,323 January 2026
Mezzanine Loan— — — 62,333 May 2024
Total floating rate$4,603 $527,021 $117,160 $168,899  
Allowance for loan loss$— $— $(13,520)$(13,520)
Total$4,603 $812,021 $167,006 $218,745 
(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, 2024. 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)Included in the Company's alternative strategy portfolio.
(6)The Company is in discussions with the borrower with respect to the loan.
(7)This loan was put on non-accrual in January 2023 and remains on non-accrual as of December 31, 2024. No investment income has been recognized since it was put on non-accrual. In December 2024, the maturity date of the loan was extended to December 2025. Additionally, we determined the borrower entity to be a VIE in which we are not the primary beneficiary.
Schedule of Preferred Equity Investments with an Aggregate Weighted Average Current Yield
As of December 31, 2024 and 2023, we held the following preferred equity investments with an aggregate weighted average current yield of 6.55% as of December 31, 2024 (dollars in thousands), excluding a $214.7 million preferred equity investment that is included in Investment in unconsolidated joint ventures in our consolidated balance sheet:
December 31, 2024December 31, 2023
TypeFuture Funding
Obligations		Senior
Financing
Carrying Value (1)
Carrying Value (1)
Mandatory
Redemption (2)
Preferred Equity $— $250,000 $136,720 $128,000 February 2027
Total$— $250,000 $136,720 $128,000 
(1)Carrying value is net of deferred origination fees.
(2)Represents contractual redemption, excluding any unexercised extension options.