XML 59 R40.htm IDEA: XBRL DOCUMENT v3.20.2
Fair Value (Tables)
 9 Months Ended
Sep. 30, 2020
Fair Value Disclosures [Abstract]  
Schedule of Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis The following table presents financial assets that were accounted for at fair value on a recurring basis as of September 30, 2020 and December 31, 2019 by level within the fair value hierarchy (dollars in thousands):
September 30, 2020December 31, 2019
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets:
Investments in unconsolidated ventures - PE Investments$— $124 $6,969 $7,093 $— $1,425 $8,858 $10,283 
Real estate securities, available for sale— 36,250 — 36,250 — 252,824 — 252,824 
Mortgage loans held in securitization trusts, at fair value— — 1,839,390 1,839,390 — — 1,872,970 1,872,970 
Other assets - derivative assets— 1,981 1,981 — 4,122 — 4,122 
Liabilities:
Mortgage obligations issued by securitization trusts, at fair value$— $1,770,924 $— $1,770,924 $— $1,762,914 $— $1,762,914 
Other liabilities - derivative liabilities— 37 — 37 — 19,133 — 19,133 
Schedule of Changes in Level 3
The following table presents the changes in fair value of financial assets which are measured at fair value on a recurring basis using Level 3 inputs to determine fair value for the nine months ended September 30, 2020 and year ended December 31, 2019 (dollars in thousands):
Nine Months Ended September 30, 2020Year Ended December 31, 2019
Investments in unconsolidated ventures - PE Investments
Mortgage loans held in securitization trusts(1)
Investments in unconsolidated ventures - PE Investments
Mortgage loans held in securitization trusts(1)
Beginning balance$8,858 $1,872,970 $160,851 $3,116,978 
Contributions(2)/purchases
— — 151 — 
Distributions/paydowns(2,558)(19,817)(18,407)(55,288)
Deconsolidation of securitization trust(3)
— — — (1,239,627)
Equity in earnings669 — — — 
Sale of investments— — (48,930)(39,848)
Transfers out of Level 3— (84,807)— 
Unrealized gain (loss) in earnings— (13,763)— 87,983 
Realized gain in earnings— — 2,772 
Ending balance$6,969 $1,839,390 $8,858 $1,872,970 
_________________________________________
(1)For the nine months ended September 30, 2020, the Company recorded an unrealized loss of $13.8 million related to mortgage loans held in securitization trusts, at fair value and an unrealized loss of $27.8 million related to mortgage obligations issued by securitization trusts, at fair value.
(2)Includes initial investments, before distribution and contribution closing statement adjustments, and subsequent contributions, including deferred purchase price fundings.
(3)In July 2019, the Company sold its retained investments in the subordinate tranches of one securitization trust. As a result of the sale, the Company deconsolidated one of the securitization trusts. See Note 5, “Real Estate Securities, Available for Sale” for further information.
Summary of Principal Amount, Carrying Value and Fair Value of Financial Assets and Liabilities
The following table presents the principal amount, carrying value and fair value of certain financial assets and liabilities as of September 30, 2020 and December 31, 2019 (dollars in thousands):
September 30, 2020December 31, 2019
Principal AmountCarrying ValueFair ValuePrincipal AmountCarrying ValueFair Value
Financial assets:(1)
Loans and preferred equity held for investment, net$2,149,018 $2,103,414 (2)$2,109,093 $2,858,423 (2)$2,576,332 $2,470,561 
Financial liabilities:(1)
Securitization bonds payable, net$840,423 $834,621 $840,423 $840,423 $833,153 $840,423 
Mortgage and other notes payable, net1,107,388 1,102,999 1,107,388 1,260,267 1,256,112 1,260,675 
Master repurchase facilities608,632 608,632 608,632 1,099,233 1,099,233 1,099,233 
_________________________________________
(1)The fair value of other financial instruments not included in this table is estimated to approximate their carrying value.
(2)Excludes future funding commitments of $173.2 million and $276.6 million as of September 30, 2020 and December 31, 2019, respectively.
Fair Value Measurements, Nonrecurring
The following table summarizes assets carried at fair value on a nonrecurring basis as of September 30, 2020 and December 31, 2019 (dollars in thousands):
September 30, 2020December 31, 2019
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Loans and preferred equity held for investment, net$— $— $— $— $— $— $104,797 $104,797 
Loans held for sale— — — — — — 5,016 5,016 
Real estate, net— — — — — — 423,540 423,540 
Real estate assets held for sale— — 142,559 142,559 — — 117,880 117,880 
Investments in unconsolidated ventures— — — — — — 124,860 124,860 
Deferred leasing costs and intangible assets, net— — — — — — 41,862 41,862 
The following table summarizes the fair value write-downs to assets carried at nonrecurring fair values during the periods presented (dollars in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
Loans:
Loans and preferred equity held for investment, net (1)
$— $99,729 $2,346 $209,987 
Loans held for sale (1)
— 10,584 31,581 10,584 
Total$— $110,313 $33,927 $220,571 
Real Estate:
Real estate, net$— $216,437 $— $226,561 
Real estate held for sale4,565 56,285 30,500 56,285 
Total$4,565 $272,722 $30,500 $282,846 
Investments in Unconsolidated Ventures:
Investments in unconsolidated ventures$— $17,600 $— $17,600 
Total$— $17,600 $— $17,600 
_________________________________________
(1)See Note 3 “Loans and Preferred Equity Held for Investment, net and Loans Held for Sale’ for further details.