Real Estate Securities, Available for Sale

6 Months Ended

Jun. 30, 2014

Investments, Debt and Equity Securities [Abstract]

Real Estate Securities, Available for Sale

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):

													Weighted Average
		Principal Amount (1)		Amortized Cost		Cumulative Unrealized on Investments					Fair Value				Unleveraged Current Yield
CMBS:	Number					Gain		(Loss)					Coupon (2)
June 30, 2014	8	$	104,542	$	54,010	$	16,971	$	(481	)	$	70,500	4.53	%	9.07	%
December 31, 2013	8	104,542		53,406		13,373		(329		)	66,450		4.53	%	9.07	%

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(1) Certain CRE securities serve as collateral for financing transactions including carrying value of $17.7 million for the CMBS Facilities (refer to Note 7). The remainder is unleveraged.

(2) All CMBS are fixed rate.

The Company recorded unrealized gains in OCI for the three months endedJune 30, 2014 and 2013 of $1.7 million and $1.0 million, respectively. The Company recorded unrealized gains in OCI for the six months ended June 30, 2014 and 2013 of $3.4 million and $2.0 million, respectively. As of June 30, 2014, the Company held two securities with an aggregate carrying value of $17.7 million with an unrealized loss of $0.5 million, both of which were in an unrealized loss position for a period of more than 12 months. Based on management’s quarterly evaluation, no OTTI was identified related to these securities. The Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell these securities prior to recovery of its amortized cost basis, which may be at maturity.

As of June 30, 2014, the weighted average contractual maturity of CRE securities was 33 years with an expected maturity of 7.1 years.