Investments in Real Estate Debt

12 Months Ended

Dec. 31, 2021

5.	Investments in Real Estate Debt

The following tables detail the Company’s investments in real estate debt as of December 31, 2021 and 2020 ($ in thousands):

		December 31, 2021
Type of Security/Loan	Number of Positions	Weighted Average Coupon	Weighted Average Maturity Date ⁽¹⁾	Cost Basis		Fair Value
RMBS	50	3.07%	July 9, 2045	$	165,600	$	168,309
CMBS - floating	4	L + 3.46%	July 15, 2038		296,928		295,465
CMBS - fixed	1	6.26%	July 25, 2039		2,522		2,701
Total real estate debt securities	55	3.34%	January 5, 2041		465,050		466,475
Term loan⁽²⁾	1	L + 5.35%	February 26, 2026		504,540		487,602
Total investments in real estate debt	56	4.41%	April 8, 2033	$	969,590	$	954,077

			December 31, 2020
Type of Security	Number of Positions		Weighted Average Coupon	Weighted Average Maturity Date ⁽¹⁾	Cost Basis		Fair Value
RMBS	55		3.22%	March 22, 2047	$	213,863	$	215,358
CMBS	1		6.26%	July 25, 2039		3,066		2,867
Total investments in real estate debt		56			$	216,929	$	218,225

⁽¹⁾	^{Weighted average maturity date is based on the fully extended maturity date of the underlying collateral.}

⁽²⁾

On February 26, 2021, the Company provided financing in the form of a term loan to an unaffiliated entity in connection with its acquisition of a premier United Kingdom holiday company. The loan is in the amount of £360 million and has an initial term of five years, with a two-year extension option.

The majority of the Company’s investments in real estate debt securities consist of non-agency RMBS and CMBS.

The Company’s investments in real estate debt include CBMS collateralized by properties owned by Starwood-advised investment vehicles. The following table details the Company’s affiliate investments in real estate debt ($ in thousands):

	Fair Value
	December 31, 2021		December 31, 2020
CMBS	$	295,465	$	—
Total	$	295,465	$	—

Such CMBS were purchased in fully or over-subscribed offerings. Each investment in such CMBS by the Company represented a minority participation in any individual tranche. The Company acquired its minority participation interest from third-party investment banks on market terms negotiated by the majority third-party investors.

During the year ended December 31, 2021, the Company recorded net unrealized gains on its investments in real estate debt of $1.7 million. During the year ended December 31, 2020 the Company recorded net unrealized losses and realized losses on its real estate-related securities portfolio of $0.2 million and $5.8 million, respectively. Such amounts are recorded as a component of Income from real estate debt on the Company’s Consolidated Statements of Operations.