COMMERCIAL REAL ESTATE INVESTMENTS (Tables)

3 Months Ended

Mar. 31, 2018

Investment Company [Abstract]

Commercial Real Estate Investments Held for Investment

At March 31, 2018 and December 31, 2017, commercial real estate investments held for investment were comprised of the following:

	March 31, 2018						December 31, 2017
	Outstanding Principal		Carrying Value (1)		Percentage of Loan Portfolio (2)		Outstanding Principal		Carrying Value (1)		Percentage of Loan Portfolio (2)
	(dollars in thousands)
Senior mortgages	$	685,457	$	681,819	63.2	%	$	629,143	$	625,900	60.9	%
Mezzanine loans	390,976		390,487		36.0	%	395,015		394,442		38.2	%
Preferred equity	9,000		8,989		0.8	%	9,000		8,985		0.9	%
Total	$	1,085,433	$	1,081,295	100.0	%	$	1,033,158	$	1,029,327	100.0	%

(1) Carrying value includes unamortized origination fees of $4.1 million and $3.8 million at March 31, 2018 and December 31, 2017, respectively.

(2) Based on outstanding principal.

	Three months ended March 31, 2018
	Senior Mortgages			Mezzanine Loans			Preferred Equity		Total
	(dollars in thousands)
Beginning balance	$	625,900		$	394,442		$	8,985	$	1,029,327
Originations & advances (principal)	56,954			601			—		57,555
Principal payments	(640		)	(4,640		)	—		(5,280		)
Net (increase) decrease in origination fees	(871		)	—			—		(871		)
Amortization of net origination fees	476			84			4		564
Net carrying value	$	681,819		$	390,487		$	8,989	$	1,081,295

	December 31, 2017
	Senior Mortgages			Mezzanine Loans			Preferred Equity		Total
	(dollars in thousands)
Beginning balance	$	510,071		$	451,467		$	8,967	$	970,505
Originations & advances (principal)	338,242			69,121			—		407,363
Principal payments	(221,421		)	(127,799		)	—		(349,220		)
Amortization & accretion of (premium) discounts	(44		)	28			—		(16		)
Net (increase) decrease in origination fees	(3,317		)	(605		)	—		(3,922		)
Amortization of net origination fees	2,369			2,230			18		4,617
Net carrying value	$	625,900		$	394,442		$	8,985	$	1,029,327

Internal Loan and Preferred Equity Ratings

	March 31, 2018
	Outstanding Principal		Percentage of CRE Debt and Preferred Equity Portfolio		Internal Ratings
Investment Type					Performing		Performing - Closely Monitored		Performing - Special Mention		Substandard (1)		Doubtful		Loss		Total
	(dollars in thousands)
Senior mortgages	$	685,457	63.2	%	$	439,992	$	141,275	$	36,800	$	67,390	$	—	$	—	$	685,457
Mezzanine loans	390,976		36.0	%	216,740		56,498		117,738		—		—		—		390,976
Preferred equity	9,000		0.8	%	—		—		9,000		—		—		—		9,000
Total	$	1,085,433	100.0	%	$	656,732	$	197,773	$	163,538	$	67,390	$	—	$	—	$	1,085,433

	December 31, 2017
	Outstanding Principal		Percentage of CRE Debt and Preferred Equity Portfolio		Internal Ratings
Investment Type					Performing		Performing - Closely Monitored		Performing - Special Mention		Substandard (1)		Doubtful		Loss		Total
	(dollars in thousands)
Senior mortgages	$	629,143	60.9	%	$	409,878	$	115,075	$	36,800	$	67,390	$	—	$	—	$	629,143
Mezzanine loans	395,015		38.2	%	206,169		66,498		122,348		—		—		—		395,015
Preferred equity	9,000		0.9	%	—		—		9,000		—		—		—		9,000
Total	$	1,033,158	100.0	%	$	616,047	$	181,573	$	168,148	$	67,390	$	—	$	—	$	1,033,158

(1) The Company transferred one loan to Substandard during the year ended December 31, 2017. The downgrade in risk rating was based on the borrower’s failure to meet originally projected performance targets. The Company evaluated whether an impairment exists and determined that, based on quantitative and qualitative factors, including that the borrower is current, the Company expects repayment of contractual amounts due.

Total Commercial Real Estate Held for Investment

	March 31, 2018			December 31, 2017
	(dollars in thousands)
Real estate held for investment, at amortized cost
Land	$	111,012		$	111,012
Buildings and improvements	331,390			330,959
Subtotal	442,402			441,971
Less: accumulated depreciation	(52,723		)	(48,920		)
Total real estate held for investment, at amortized cost, net	389,679			393,051
Equity in unconsolidated joint ventures	90,384			92,902
Investments in commercial real estate, net	$	480,063		$	485,953

Minimum Future Rentals on Non-cancelable Leases

Approximate future minimum rents to be received over the next five years and thereafter for non-cancelable operating leases in effect at March 31, 2018 for consolidated investments in real estate are as follows: 

	March 31, 2018
	(dollars in thousands)
2018 (remaining)	$	22,306
2019	26,423
2020	21,708
2021	17,302
2022	12,356
Later years	20,687
	$	120,782

Mortgage Loans Payable

Mortgage loans payable at March 31, 2018  and December 31, 2017, were as follows:

March 31, 2018
Property	Mortgage Carrying Value		Mortgage Principal		Interest Rate	Fixed/Floating Rate	Maturity Date	Priority
(dollars in thousands)
Joint Ventures	$	286,471	$	289,125	4.03% - 4.61%	Fixed	2024 and 2025	First liens
Tennessee	12,303		12,350		4.01%	Fixed	9/6/2019	First liens
Virginia	11,020		11,025		3.58%	Fixed	6/6/2019	First liens
Total	$	309,794	$	312,500

December 31, 2017
Property	Mortgage Carrying Value		Mortgage Principal		Interest Rate	Fixed/Floating Rate	Maturity Date	Priority
(dollars in thousands)
Joint Ventures	$	286,373	$	289,125	4.03% - 4.61%	Fixed	2024 and 2025	First liens
Tennessee	12,294		12,350		4.01%	Fixed	9/6/2019	First liens
Virginia	11,019		11,025		3.58%	Fixed	6/6/2019	First liens
Total	$	309,686	$	312,500

Future Mortgage Loan Principal Payments

The following table details future mortgage loan principal payments at March 31, 2018:

	Mortgage Loan Principal Payments
	(dollars in thousands)
2018 (remaining)	$	—
2019	23,375
2020	—
2021	—
2022	—
Later years	289,125
Total	$	312,500