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Segment Reporting
 6 Months Ended
Jun. 30, 2014
Segment Reporting [Abstract]  
Segment Reporting
Segment Reporting
The Company conducts its business through the following segments, which are based on how management reviews and manages its business:
•
Commercial Real Estate Debt - Focused on originating, acquiring and asset managing CRE debt investments including first mortgage loans, subordinate interests and mezzanine loans and participations in such loans, as well as preferred equity interests. The Company may also invest in CRE debt investments indirectly through joint ventures.
•
Select Commercial Real Estate Equity - Focused on indirect interests in real estate through real estate private equity funds since the underlying collateral in the funds is primarily real estate, direct ownership in real estate or through a joint venture and select real estate assets that may or may not be structurally senior to a third-party partner’s equity.
•
Commercial Real Estate Securities - Focused on investing in CMBS, unsecured REIT debt, CDO notes and other securities.
The Company primarily generates revenue from net interest income on the CRE debt and securities portfolios, equity in earnings of unconsolidated ventures, including from PE Investments, and from rental and other income from its real estate equity 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 investments. The Company may also acquire investments which generate attractive returns without any leverage.
The following tables present segment reporting for the three and six months ended June 30, 2014 and 2013 (dollars in thousands):
Three months ended June 30, 2014:

Real Estate
Debt

Real Estate Equity

Real Estate
Securities

Corporate (1)

Total
Net interest income

$
19,737


$
—


$
1,454


$
—


$
21,191

Rental and other income

—


5,634


—


—


5,634

Expenses

227


6,483


—


9,026


15,736

Income (loss) from operations

19,510


(849
)

1,454


(9,026
)

11,089

Equity in earnings (losses) of unconsolidated ventures

217


8,744


—


—


8,961

Net income (loss)

$
19,727


$
7,895


$
1,454


$
(9,026
)

$
20,050

 

Three months ended June 30, 2013:
 
Real Estate
Debt
 
Real Estate Equity
 
Real Estate
Securities
 
Corporate (1)
 
Total
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

 

Six months ended June 30, 2014:
 
Real Estate
Debt
 
Real Estate Equity
 
Real Estate
Securities
 
Corporate (1)
 
Total
Net interest income
 
$
36,824

 
$
—

 
$
2,884

 
$
—

 
$
39,708

Rental and other income
 
—

 
10,478

 
—

 
—

 
10,478

Expenses
 
462

 
11,422

 
—

 
16,271

 
28,155

Income (loss) from operations
 
36,362

 
(944
)
 
2,884

 
(16,271
)
 
22,031

Equity in earnings (losses) of unconsolidated ventures
 
837

 
17,261

 
—

 
—

 
18,098

Realized gain (loss) on investments and other
 
(175
)
 
—

 
—

 
—

 
(175
)
Net income (loss)
 
$
37,024

 
$
16,317

 
$
2,884

 
$
(16,271
)
 
$
39,954

Six months ended June 30, 2013:
 
Real Estate
Debt
 
Real Estate Equity
 
Real Estate
Securities
 
Corporate (1)
 
Total
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

_________________________________________________
(1)
Includes unallocated asset management and other fees - related party and general and administrative expenses.
The following table presents total assets by segment as of June 30, 2014 and December 31, 2013 (dollars in thousands):
Total Assets
 
Real Estate
Debt
 
Real Estate Equity
 
Real Estate
Securities
 
Corporate (1)
 
Total
June 30, 2014
 
$
1,453,589

 
$
327,864

 
$
70,914

 
$
85,444

 
$
1,937,811

December 31, 2013
 
$
1,347,461

 
$
302,501

 
$
66,837

 
$
114,305

 
$
1,831,104

__________________________________________________
(1)
Includes cash, unallocated receivables and deferred costs and other assets, net.