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Loans and Investments (Tables)
 3 Months Ended
Mar. 31, 2018
Loans and Investments  
Schedule of composition of company's structured business loan and investment portfolio

 

The following tables set forth the composition of our Structured Business loan and investment portfolio ($ in thousands):

 

 

 

March 31, 2018

 

Percent of
Total

 

Loan
Count

 

Wtd. Avg.
Pay Rate (1)

 

Wtd. Avg.
Remaining
Months to
Maturity

 

Wtd. Avg.
First Dollar
LTV Ratio (2)

 

Wtd. Avg.
Last Dollar
LTV Ratio (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bridge loans

 

$
2,502,574

 
90

%
153

 
6.41

%
19.6

 
0

%
72

%

Preferred equity investments

 
188,872

 
7

%
13

 
6.77

%
63.5

 
58

%
88

%

Mezzanine loans

 
84,976

 
3

%
7

 
10.81

%
19.9

 
20

%
66

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
2,776,422

 
100

%
173

 
6.57

%
22.6

 
5

%
73

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses

 
(63,108

)

 

 

 

 

 

 

 

 

 

 

 

 

Unearned revenue

 
(11,217

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and investments, net

 

$
2,702,097

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bridge loans

 

$
2,422,105

 
91

%
150

 
6.10

%
20.9

 
0

%
72

%

Preferred equity investments

 
142,892

 
6

%
12

 
6.47

%
68.7

 
64

%
90

%

Mezzanine loans

 
87,541

 
3

%
8

 
10.78

%
24.8

 
20

%
63

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
2,652,538

 
100

%
170

 
6.28

%
23.6

 
4

%
73

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses

 
(62,783

)

 

 

 

 

 

 

 

 

 

 

 

 

Unearned revenue

 
(10,628

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and investments, net

 

$
2,579,127

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

“Weighted Average Pay Rate” is a weighted average, based on the unpaid principal balance (“UPB”) of each loan in our portfolio, of the interest rate that is required to be paid monthly as stated in the individual loan agreements.  Certain loans and investments that require an additional rate of interest “Accrual Rate” to be paid at maturity are not included in the weighted average pay rate as shown in the table.

(2)

The “First Dollar Loan-to-Value (“LTV”) Ratio” is calculated by comparing the total of our senior most dollar and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which we will absorb a total loss of our position.

(3)

The “Last Dollar LTV Ratio” is calculated by comparing the total of the carrying value of our loan and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which we will initially absorb a loss.

 

Summary of the loan portfolio's weighted average internal risk ratings and LTV ratios by asset class

 

A summary of the loan portfolio’s weighted average internal risk ratings and LTV ratios by asset class is as follows ($ in thousands):

 

 

 

March 31, 2018

 

Asset Class

 

UPB

 

Percentage of
Portfolio

 

Wtd. Avg.
Internal Risk
Rating

 

Wtd. Avg.
First Dollar
LTV Ratio

 

Wtd. Avg.
Last Dollar
LTV Ratio

 

 

 

 

 

 

 

 

 

 

 

 

 

Multifamily

 

$
2,049,398

 
74

%

pass/watch

 
4

%
72

%

Self Storage

 
301,830

 
11

%

pass/watch

 
0

%
71

%

Land

 
132,903

 
5

%

substandard

 
0

%
91

%

Office

 
107,818

 
4

%

special mention

 
1

%
65

%

Hotel

 
90,725

 
3

%

pass/watch

 
35

%
79

%

Healthcare

 
55,615

 
2

%

pass/watch

 
0

%
77

%

Retail

 
36,433

 
1

%

pass/watch

 
8

%
66

%

Commercial

 
1,700

 

<1

%

doubtful

 
63

%
63

%

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$
2,776,422

 
100

%

pass/watch

 
5

%
73

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

Multifamily

 

$
1,925,529

 
73

%

pass/watch

 
4

%
72

%

Self Storage

 
301,830

 
11

%

pass

 
0

%
71

%

Land

 
132,828

 
5

%

substandard

 
0

%
90

%

Office

 
107,853

 
4

%

pass/watch

 
1

%
64

%

Hotel

 
90,725

 
3

%

special mention

 
37

%
81

%

Healthcare

 
55,615

 
2

%

pass/watch

 
0

%
74

%

Retail

 
36,458

 
1

%

pass/watch

 
8

%
66

%

Commercial

 
1,700

 

<1

%

doubtful

 
63

%
63

%

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$
2,652,538

 
100

%

pass/watch

 
4

%
73

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Summary of the changes in the allowance for loan losses

 

A summary of the changes in the allowance for loan losses is as follows (in thousands):

 

 

 

Three Months Ended March 31,

 

 

 

2018

 

2017

 

 

 

 

 

 

 

Allowance at beginning of period

 

$
62,783

 

$
83,712

 

Provision for loan losses

 
325

 

—

 

Recoveries of reserves

 

—

 
(696

)

 

 

 

 

 

 

Allowance at end of period

 

$
63,108

 

$
83,016

 

 

 

 

 

 

 

 

 

 

Summary of the company's impaired loans by asset class

 

A summary of our impaired loans by asset class is as follows (in thousands):

 

 

 

March 31, 2018

 

Three Months Ended March 31, 2018

 

Asset Class

 

UPB

 

Carrying Value (1)

 

Allowance for
Loan Losses

 

Average Recorded
Investment (2)

 

Interest Income
Recognized

 

 

 

 

 

 

 

 

 

 

 

 

 

Land

 

$
131,411

 

$
125,174

 

$
54,208

 

$
131,249

 

$

—

 

Hotel

 
34,750

 
34,750

 
5,700

 
34,750

 

—

 

Office

 
2,283

 
2,283

 
1,500

 
2,286

 
29

 

Commercial

 
1,700

 
1,700

 
1,700

 
1,700

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$
170,144

 

$
163,907

 

$
63,108

 

$
169,985

 

$
29

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

Three Months Ended March 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

Land

 

$
131,086

 

$
124,812

 

$
53,883

 

$
131,086

 

$

—

 

Hotel

 
34,750

 
34,750

 
5,700

 
34,750

 
310

 

Office

 
2,288

 
2,288

 
1,500

 
27,560

 
25

 

Commercial

 
1,700

 
1,700

 
1,700

 
1,700

 

—

 

Multifamily

 

—

 

—

 

—

 
2,151

 
22

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$
169,824

 

$
163,550

 

$
62,783

 

$
197,247

 

$
357

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Represents the UPB of five impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class at both March 31, 2018 and December 31, 2017.

(2)

Represents an average of the beginning and ending UPB of each asset class.

 

Summary of the company's non-performing loans by asset class

 

 

A summary of our non-performing loans by asset class is as follows (in thousands):

 

 

 

March 31, 2018

 

December 31, 2017

 

Asset Class

 

Carrying Value

 

Less Than 90
Days Past Due

 

Greater Than
90 Days Past
Due

 

Carrying
Value

 

Less Than 90
Days Past Due

 

Greater Than
90 Days Past
Due

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hotel

 

$
34,750

 

$

—

 

$
34,750

 

$
34,750

 

$

—

 

$
34,750

 

Commercial

 
1,700

 

—

 
1,700

 
1,700

 

—

 
1,700

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$
36,450

 

$

—

 

$
36,450

 

$
36,450

 

$

—

 

$
36,450