Segment Reporting

6 Months Ended

Jun. 30, 2013

Segment Reporting

Segment Reporting

12. Segment Reporting

        The Company conducts its business through the following segments:

• •

  The CRE debt business is focused on originating, acquiring and asset managing CRE debt investments including first mortgage loans, subordinate mortgage and mezzanine loans and participations in such loans and preferred equity interests.

  •

  The CRE equity business includes other select equity investments, including indirect investments in real estate through joint ventures owning limited partnership interests in real estate private equity funds managed by institutional-quality sponsors, diversified by property type and geography. Since the underlying collateral in the funds is primarily real estate, the Company categorizes PE Investments as equity investments.

  •

  The CRE securities business is focused on investing in and asset managing CRE securities primarily consisting of CMBS and may include unsecured REIT debt, CDO notes and other securities.

        The Company primarily generates revenue from net interest income on the CRE debt and securities portfolios and from equity in earnings of unconsolidated ventures, including from PE Investments. The Company's income is primarily derived through the difference between revenue and the cost at which the Company is able to finance its assets. The Company may also invest in assets that generate attractive returns without any leverage.

        The following tables present segment reporting for the three and six months ended June 30, 2013 and 2012 (dollars in thousands):

Three Months Ended June 30, 2013	Real Estate Debt			Equity Interests			Real Estate Securities		Corporate(1)			Total
Net interest income
Interest income	$	14,737		$	—		$	1,454	$	—		$	16,191
Interest expense		3,222			—			41		—			3,263
Net interest income		11,515			—			1,413		—			12,928
Expenses		81			691			7		5,019			5,798
Income (loss) from operations		11,434			(691	)		1,406		(5,019	)		7,130
Equity in earnings (losses) of unconsolidated ventures		(181	)		6,008			—		—			5,827
Net income (loss)	$	11,253		$	5,317		$	1,406	$	(5,019	)	$	12,957

Three Months Ended June 30, 2012	Real Estate Debt		Real Estate Securities			Corporate(1)			Total
Net interest income
Interest income	$	4,293	$	415		$	—		$	4,708
Interest expense		150		213			—			363
Net interest income		4,143		202			—			4,345
Expenses		14		—			1,392			1,406
Income (loss) from operations		4,129		202			(1,392	)		2,939
Realized gain (loss) on investments and other		—		3,028			—			3,028
Unrealized gain (loss) on investments and other		—		(2,959	)		—			(2,959	)
Net income (loss)	$	4,129	$	271		$	(1,392	)	$	3,008

Six Months Ended June 30, 2013	Real Estate Debt			Equity Interests			Real Estate Securities		Corporate(1)			Total
Net interest income
Interest income	$	26,462		$	—		$	2,396	$	—		$	28,858
Interest expense		5,712			—			89		—			5,801
Net interest income		20,750			—			2,307		—			23,057
Expenses		150			2,279			14		8,777			11,220
Income (loss) from operations		20,600			(2,279	)		2,293		(8,777	)		11,837
Equity in earnings (losses) of unconsolidated ventures		(181	)		9,223			—		—			9,042
Net income (loss)	$	20,419		$	6,944		$	2,293	$	(8,777	)	$	20,879

Six Months Ended June 30, 2012	Real Estate Debt		Real Estate Securities			Corporate(1)			Total
Net interest income
Interest income	$	6,390	$	882		$	—		$	7,272
Interest expense		175		439			—			614
Net interest income		6,215		443			—			6,658
Expenses		23		—			2,189			2,212
Income (loss) from operations		6,192		443			(2,189	)		4,446
Realized gain (loss) on investments and other		—		3,028			—			3,028
Unrealized gains (losses) on investments and other		—		(2,457	)		—			(2,457	)
Net income (loss)	$	6,192	$	1,014		$	(2,189	)	$	5,017

(1)

Includes unallocated advisory fees—related party and general and administrative expenses.

        The following table presents total assets by segment as of June 30, 2013 and December 31, 2012 (dollars in thousands):

Total Assets	Real Estate Debt		Equity Interests		Real Estate Securities		Corporate(1)		Total
June 30, 2013	$	1,154,491	$	119,511	$	55,676	$	194,244	$	1,523,922
December 31, 2012	$	617,705	$	—	$	29,712	$	212,521	$	859,938

(1)

Includes cash, unallocated receivables and deferred costs and other assets, net.