Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Summary of Segment Reporting

The following tables present segment reporting for the three and six months ended June 30, 2020 and 2019 (dollars in thousands):

	Core
	Senior and Mezzanine Loans and Preferred Equity		CRE Debt Securities		Net Leased Real Estate		Corporate(1)		Total Core Portfolio		Legacy, Non-Strategic Portfolio		Total
Three months ended June 30, 2020
Net interest income (expense)	$	27,148	$	1,051	$	2	$	(2,752)	$	25,449	$	(511)	$	24,938
Property and other income	81		—		14,636		116		14,833		20,529		35,362
Management fee expense	—		—		1		(6,486)		(6,485)		(721)		(7,206)
Property operating expense	—		—		(3,275)		—		(3,275)		(13,036)		(16,311)
Transaction, investment and servicing expense	(1,130)		(37)		(4)		(269)		(1,440)		(1,467)		(2,907)
Interest expense on real estate	—		—		(8,085)		—		(8,085)		(3,733)		(11,818)
Depreciation and amortization	—		—		(9,297)		—		(9,297)		(4,723)		(14,020)
Provision for loan losses	86		—		—		—		86		(35)		51
Impairment of operating real estate	—		—		—		—		—		(25,935)		(25,935)
Administrative expense	(372)		(200)		(121)		(3,719)		(4,412)		(2,339)		(6,751)
Unrealized gain (loss) on mortgage loans and obligations held in securitization trusts, net	—		(9,498)		—		523		(8,975)		—		(8,975)
Other gain (loss), net	(48,110)		(87,006)		8,556		(2)		(126,562)		6,929		(119,633)
Income (loss) before equity in earnings of unconsolidated ventures and income taxes	(22,297)		(95,690)		2,413		(12,589)		(128,163)		(25,042)		(153,205)
Equity in earnings (loss) of unconsolidated ventures	(85,328)		—		—		—		(85,328)		51		(85,277)
Income tax benefit (expense)	(2,199)		—		98		—		(2,101)		(1)		(2,102)
Net income (loss)	$	(109,824)	$	(95,690)	$	2,511	$	(12,589)	$	(215,592)	$	(24,992)	$	(240,584)

	Core
	Senior and Mezzanine Loans and Preferred Equity		CRE Debt Securities		Net Leased Real Estate		Corporate(1)		Total Core Portfolio		Legacy, Non-Strategic Portfolio		Total
Three months ended June 30, 2019
Net interest income (expense)	$	17,902	$	5,442	$	—	$	(2,453)	$	20,891	$	3,036	$	23,927
Property and other income	148		74		29,847		1		30,070		35,131		65,201
Management fee expense	—		—		—		(9,086)		(9,086)		(2,271)		(11,357)
Property operating expense	—		—		(7,901)		—		(7,901)		(20,239)		(28,140)
Transaction, investment and servicing expense	(537)		—		(60)		280		(317)		(734)		(1,051)
Interest expense on real estate	—		—		(8,814)		—		(8,814)		(5,084)		(13,898)
Depreciation and amortization	—		—		(12,888)		—		(12,888)		(16,369)		(29,257)
Provision for loan losses	—		—		—		—		—		(110,258)		(110,258)
Impairment of operating real estate	—		—		—		—		—		(10,124)		(10,124)
Administrative expense	(13)		(348)		(43)		(3,764)		(4,168)		(3,842)		(8,010)
Unrealized gain on mortgage loans and obligations held in securitization trusts, net	—		5,154		—		395		5,549		—		5,549
Other gain (loss), net	—		(6,156)		144		(4)		(6,016)		(46)		(6,062)
Income (loss) before equity in earnings of unconsolidated ventures and income taxes	17,500		4,166		285		(14,631)		7,320		(130,800)		(123,480)
Equity in earnings (loss) of unconsolidated ventures	17,917		—		—		—		17,917		(5,360)		12,557
Income tax benefit (expense)	—		—		(359)		—		(359)		492		133
Net income (loss)	$	35,417	$	4,166	$	(74)	$	(14,631)	$	24,878	$	(135,668)	$	(110,790)

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(1)Includes income earned from the CRE securities purchased at a discount, recognized using the effective interest method had the transaction been recorded as an available for sale security, at amortized cost. During the three months ended June 30, 2020 and June 30, 2019, $0.5 million and $0.4 million, respectively, was attributable to discount accretion income and was eliminated in consolidation in the corporate segment. The corresponding interest expense is recorded in net interest income in the Corporate column.

	Core
	Senior and Mezzanine Loans and Preferred Equity		CRE Debt Securities		Net Leased Real Estate		Corporate(1)		Total Core Portfolio		Legacy, Non-Strategic Portfolio		Total
Six months ended June 30, 2020
Net interest income (expense)	$	50,631	$	6,593	$	9	$	(4,628)	$	52,605	$	189	$	52,794
Property and other income	105		72		45,168		121		45,466		51,818		97,284
Management fee expense	—		—		—		(13,002)		(13,002)		(2,150)		(15,152)
Property operating expense	(1)		—		(6,957)		—		(6,958)		(31,884)		(38,842)
Transaction, investment and servicing expense	(1,528)		(37)		(147)		(1,942)		(3,654)		(2,387)		(6,041)
Interest expense on real estate	—		—		(16,546)		—		(16,546)		(8,350)		(24,896)
Depreciation and amortization	—		—		(20,449)		—		(20,449)		(11,547)		(31,996)
Provision for loan losses	(31,413)		—		—		—		(31,413)		(38,468)		(69,881)
Impairment of operating real estate	—		—		—		—		—		(30,061)		(30,061)
Administrative expense	(735)		(735)		(203)		(6,870)		(8,543)		(5,246)		(13,789)
Unrealized gain (loss) on mortgage loans and obligations held in securitization trusts, net	—		(29,404)		—		977		(28,427)		—		(28,427)
Other gain (loss), net	(48,110)		(103,342)		4,472		(94)		(147,074)		7,279		(139,795)
Income (loss) before equity in earnings of unconsolidated ventures and income taxes	(31,051)		(126,853)		5,347		(25,438)		(177,995)		(70,807)		(248,802)
Equity in earnings (loss) of unconsolidated ventures	(71,255)		—		—		—		(71,255)		3,145		(68,110)
Income tax benefit (expense)	(2,560)		—		296		—		(2,264)		(1,549)		(3,813)
Net income (loss)	$	(104,866)	$	(126,853)	$	5,643	$	(25,438)	$	(251,514)	$	(69,211)	$	(320,725)

	Core
	Senior and Mezzanine Loans and Preferred Equity		CRE Debt Securities		Net Leased Real Estate		Corporate(1)		Total Core Portfolio		Legacy, Non-Strategic Portfolio		Total
Six months ended June 30, 2019
Net interest income (expense)	$	33,781	$	10,755	$	—	$	(5,311)	$	39,225	$	6,660	$	45,885
Property and other income	241		141		59,752		—		60,134		68,378		128,512
Management fee expense	—		—		—		(18,172)		(18,172)		(4,543)		(22,715)
Property operating expense	—		—		(16,847)		—		(16,847)		(39,473)		(56,320)
Transaction, investment and servicing expense	(813)		—		(105)		546		(372)		(1,208)		(1,580)
Interest expense on real estate	—		—		(17,384)		—		(17,384)		(10,121)		(27,505)
Depreciation and amortization	—		—		(25,972)		—		(25,972)		(30,947)		(56,919)
Provision for loan losses	—		—		—		—		—		(110,258)		(110,258)
Impairment of operating real estate	—		—		—		—		—		(10,124)		(10,124)
Administrative expense	(303)		(735)		(100)		(6,670)		(7,808)		(6,855)		(14,663)
Unrealized gain on mortgage loans and obligations held in securitization trusts, net	—		5,820		—		758		6,578		—		6,578
Realized gain on mortgage loans and obligations held in securitization trusts, net	—		48		—		—		48		—		48
Other gain (loss), net	—		(10,227)		380		5		(9,842)		(1,299)		(11,141)
Income (loss) before equity in earnings of unconsolidated ventures and income taxes	32,906		5,802		(276)		(28,844)		9,588		(139,790)		(130,202)
Equity in earnings (losses) of unconsolidated ventures	36,285		—		—		—		36,285		(2,418)		33,867
Income tax benefit (expense)	(12)		—		2,023		(382)		1,629		(1,127)		502
Net income (loss)	$	69,179	$	5,802	$	1,747	$	(29,226)	$	47,502	$	(143,335)	$	(95,833)

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(1)Includes income earned from the CRE securities purchased at a discount, recognized using the effective interest method had the transaction been recorded as an available for sale security, at amortized cost. During the six months ended June 30, 2020 and June 30, 2019, $1.0 million and $0.8 million, respectively, was attributable to discount accretion income and was eliminated in consolidation in the corporate segment. The corresponding interest expense is recorded in net interest income in the Corporate column.

Summary of Total Assets by Segment

The following table presents total assets by segment as of June 30, 2020 and December 31, 2019 (dollars in thousands):

	Core
Total Assets	Senior and Mezzanine Loans and Preferred Equity(1)		CRE Debt Securities		Net Leased Real Estate		Corporate(2)		Total Core Portfolio		Legacy, Non-Strategic Portfolio(3)		Total
June 30, 2020	$	2,150,288	$	1,843,041	$	1,131,680	$	1,067,199	$	6,192,208	$	658,059	$	6,850,267
December 31, 2019	2,464,963		2,226,448		1,181,609		496,714		6,369,734		1,044,572		7,414,306

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(1)Includes investments in unconsolidated ventures totaling $410.2 million and $585.0 million as of June 30, 2020 and December 31, 2019, respectively.

(2)Includes cash, unallocated receivables, deferred costs and other assets, net and the elimination of the subordinate tranches of the securitization trusts in consolidation.

(3)Includes PE Investments totaling $7.1 million and $10.3 million as of June 30, 2020 and December 31, 2019, respectively.

Schedule of Revenue by Geographic Areas

Geography information on total income and long lived assets are presented as follows (dollars in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Total income by geography:
United States	$	6,779	$	146,214	$	131,732	$	295,039
Europe	3,353		12,273		24,148		24,919
Other	—		—		—		35
Total(1)	$	10,132	$	158,487	$	155,880	$	319,993

Schedule of Long-lived Assets by Geographic Areas

	June 30, 2020		December 31, 2019
Long-lived assets by geography:
United States	$	621,285	$	1,282,189
Europe	282,026		315,369
Total(2)	$	903,311	$	1,597,558

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(1)Includes interest income, interest income on mortgage loans held in securitization trusts, property and other income and equity in earnings of unconsolidated ventures.

(2)Long-lived assets are comprised of real estate and real estate related intangible assets, and excludes financial instruments and assets held for sale.