Real Estate Securities, Available for Sale

6 Months Ended

Jun. 30, 2013

Real Estate Securities, Available for Sale

Real Estate Securities, Available for Sale

5. Real Estate Securities, Available for Sale

        CRE securities are comprised of CMBS backed by a pool of CRE loans which are typically well-diversified by type and geography. The following table presents CRE securities (dollars in thousands):

							Cumulative Unrealized on Investments							Weighted Average
			Principal Amount(1)		Amortized Cost							Fair Value					Unleveraged Current Yield
CMBS:	Number						Gain		(Loss)					Coupon(2)
June 30, 2013		8	$	104,542	$	52,844	$	2,838	$	(393	)	$	55,289		4.53	%		9.11	%
December 31, 2012		4	$	30,575	$	29,124	$	458	$	—		$	29,582		5.39	%		5.71	%

(1)

Certain CRE securities serve as collateral for financing transactions including carrying value of $17.8 million for the CMBS Facilities (refer to Note 6). The remainder is unleveraged.

(2)

All CMBS are fixed rate.

        The Company recorded unrealized gains in OCI for the three and six months ended June 30, 2013 of $1.0 million and $2.0 million, respectively. The Company recorded unrealized gains (losses) in OCI for the three and six months ended June 30, 2012 of ($0.2) million and $0.2 million, respectively.

        As of June 30, 2013, the weighted average contractual maturity of CRE securities was 34 years with an expected maturity of 8.1 years.