3. Real Estate Debt Investments

The following table presents CRE debt investments, all of which have been directly originated by the Company, as of June 30, 2013 (dollars in thousands):

							Weighted Average									Floating Rate as % of Principal Amount

Asset Type:	Number		Principal Amount(1)		Carrying Value(2)		Fixed Rate			Spread over LIBOR(3)			Unleveraged Current Yield			Floating Rate as % of Principal Amount
First mortgage loans		26	$	856,160	$	836,146		9.31	%		6.66	%		8.24	%		87.2	%
Mezzanine loans		2		56,500		56,500		11.50	%		10.00	%		11.90	%		8.0	%
Subordinate mortgage interests		1		33,250		33,250		13.11	%		0.00	%		13.24	%		0.0	%

Total/Weighted average		29	$	945,910	$	925,896		10.56	%		6.68	%		8.64	%		79.2	%

(1): Includes interest accretion, to the extent applicable, and future funding commitments of $21.8 million.
(2): Certain CRE debt investments serve as collateral for financing transactions including carrying value of $194.5 million for Securitization 2012-1 and $361.0 million for Term Loan Facilities (refer to Note 6). The remainder is unleveraged.
(3): All floating-rate loans are subject to a fixed minimum LIBOR rate ("LIBOR floor"). As of June 30, 2013, the weighted average LIBOR floor was 1.35%.

In April 2013, the Company, together with the Sponsor, originated a $255.0 million loan secured by a leasehold mortgage in the recently renovated, 1,331 room Milford Plaza Hotel ("Milford") located in the epicenter of Times Square, New York City. In addition, the investment includes an aggregate 35.0% interest in the Milford hotel and retail component of the hotel (refer to Note 4). The Company funded $89.3 million of the investment and the Sponsor funded the remaining $165.7 million. The loan is comprised of a $56.0 million first mortgage loan and a $33.3 million subordinate mortgage interest, which is financed with $45.5 million from one of the term loan facilities.

The loan is held by a general partnership of which both the Company and the Sponsor are the general partners ("Milford Loan JV"). The Sponsor is the designated partner. The Milford Loan JV is considered a voting interest entity and is not consolidated due to the substantive kick-out rights held by the Company. The Company and the Sponsor each control their proportionate interest in the Milford Loan JV and have pledged their proportionate interest to their respective loan facilities. Accordingly, the Company records its respective CRE debt investment on its consolidated balance sheets.

The following table presents CRE debt investments, all of which have been directly originated by the Company, as of December 31, 2012 (dollars in thousands):

							Weighted Average									Floating Rate as % of Principal Amount

Asset Type:	Number		Principal Amount(1)		Carrying Value(2)		Fixed Rate			Spread over LIBOR(3)			Unleveraged Current Yield			Floating Rate as % of Principal Amount
First mortgage loans		18	$	486,992	$	476,717		13.25	%		6.14	%		8.22	%		89.5	%
Mezzanine loans		2		56,627		37,341		11.50	%		10.00	%		12.12	%		8.2	%

Total/Weighted average		20	$	543,619	$	514,058		12.47	%		6.18	%		8.50	%		81.0	%

(1): Includes interest accretion, to the extent applicable, and future funding commitments of $29.8 million.
(2): Certain CRE debt investments serve as collateral for financing transactions including carrying value of $194.5 million for Securitization 2012-1 and $197.6 million for Term Loan Facilities (refer to Note 6). The remainder is unleveraged.
(3): All floating-rate loans are subject to a LIBOR floor. As of December 31, 2012, the weighted average LIBOR floor was 1.61%.

The following table presents maturities of CRE debt investments based on principal amount as of June 30, 2013 (dollars in thousands):

	Initial Maturity		Maturity Including Extensions(1)

July 1 - December 31, 2013	$	64,480	$	—
Years Ending December 31:
2014		114,310		52,000
2015		418,070		12,480
2016		259,800		179,512
2017		—		352,868
Thereafter		89,250		349,050

Total	$	945,910	$	945,910

(1): Assumes that all debt with extension options will qualify for extension at such maturity according to the conditions stipulated in the related debt agreements.

Credit Quality Monitoring

CRE debt investments are typically loans secured by direct senior priority liens on real estate properties or by interests in entities that directly own real estate properties, which serve as the primary source of cash for the payment of principal and interest. The Company evaluates its debt investments at least quarterly and differentiates the relative credit quality principally based upon: (i) whether the borrower is currently paying contractual debt service in accordance with its contractual terms; and (ii) whether the Company believes the borrower will be able to perform under its contractual terms in the future, as well as the Company's expectations as to the ultimate recovery of principal at maturity.

The Company categorizes a debt investment for which it expects to receive full payment of contractual principal and interest payments as "performing." The Company will categorize a weaker credit quality debt investment that is currently performing, but for which it believes future collection of all or some portion of principal and interest is in doubt, into a category called "performing with a loan loss reserve." The Company will categorize a weaker credit quality debt investment that is not performing, which the Company defines as a loan in maturity default and/or past due at least 90 days on its contractual debt service payments, as a non-performing loan ("NPL"). The Company's definition of an NPL may differ from that of other companies that track NPLs.

As of June 30, 2013, all CRE debt investments were performing in accordance with the contractual terms of their governing documents and were categorized as performing loans. For the six months ended June 30, 2013, no CRE debt investment contributed more than 10% of interest income.