v3.24.1.u1
Loans (Tables)
 3 Months Ended
Mar. 31, 2024
Receivables [Abstract]  
Schedule of Investments in Mortgages and Loans by Subordination Class The following tables summarize our investments in mortgages and loans as of March 31, 2024 and December 31, 2023 (dollars in thousands):
March 31, 2024Carrying
Value		Face
Amount		Weighted
Average
Coupon (1)		Weighted
Average Life
(“WAL”)
(years)(2)
Loans held-for-investment:
Commercial loans:
First mortgages (3)$14,107,898 $14,142,331 9.0 %2.7
Subordinated mortgages (4)77,495 77,619 14.8 %2.1
Mezzanine loans (3)296,699 298,400 13.9 %2.4
Other70,666 71,187 9.6 %1.6
Total commercial loans14,552,758 14,589,537 
Infrastructure first priority loans (5)
2,385,750 2,429,790 9.4 %3.7
Total loans held-for-investment16,938,508 17,019,327 
Loans held-for-sale:
Residential, fair value option 2,518,600 2,863,512 4.5 %N/A(6)
Commercial, fair value option
123,619 126,955 6.8 %6.4
Infrastructure, lower of cost or fair value (5)
47,149 49,500 11.5 %N/A
Total loans held-for-sale2,689,368 3,039,967 
Total gross loans19,627,876 $20,059,294 
Credit loss allowances:
Commercial loans held-for-investment(322,087)
Infrastructure loans held-for-investment(9,559)
Total allowances(331,646)
Total net loans$19,296,230 
December 31, 2023
Loans held-for-investment:
Commercial loans:
First mortgages (3)$14,956,646 $15,005,827 9.0 %2.8
Subordinated mortgages (4)76,560 76,882 14.8 %2.2
Mezzanine loans (3)273,146 274,899 13.7 %2.7
Other71,012 71,843 9.6 %1.8
Total commercial loans15,377,364 15,429,451 
Infrastructure first priority loans2,505,924 2,550,244 9.5 %3.9
Total loans held-for-investment17,883,288 17,979,695 
Loans held-for-sale:
Residential, fair value option 2,604,594 2,909,126 4.5 %N/A(6)
Commercial, fair value option41,043 45,400 5.5 %5.2
Total loans held-for-sale2,645,637 2,954,526 
Total gross loans20,528,925 $20,934,221 
Credit loss allowances:
Commercial loans held-for-investment(298,775)
Infrastructure loans held-for-investment(10,264)
Total allowances(309,039)
Total net loans$20,219,886 
______________________________________________________________________________________________________________________
(1)Calculated using applicable index rates as of March 31, 2024 and December 31, 2023 for variable rate loans and excludes loans for which interest income is not recognized.
(2)Represents the WAL of each respective group of loans, excluding loans for which interest income is not recognized, as of the respective balance sheet date. For commercial loans held-for-investment, the WAL is calculated assuming all extension options are exercised by the borrower, although our loans may be repaid prior to such date. For infrastructure loans, the WAL is calculated using the amounts and timing of future principal payments, as projected at origination or acquisition of each loan.
(3)First mortgages include first mortgage loans and any contiguous mezzanine loan components because as a whole, the expected credit quality of these loans is more similar to that of a first mortgage loan. The application of this methodology resulted in mezzanine loans with carrying values of $1.0 billion being classified as first mortgages as of both March 31, 2024 and December 31, 2023.
(4)Subordinated mortgages include B-Notes and junior participation in first mortgages where we do not own the senior A-Note or senior participation. If we own both the A-Note and B-Note, we categorize the loan as a first mortgage loan.
(5)During the three months ended March 31, 2024, a $48.7 million infrastructure loan held-for-investment was reclassified into loans held-for-sale, at which time a $1.5 million fair value adjustment was provided based on the contractual sale price.
(6)Residential loans have a weighted average remaining contractual life of 27.6 years and 27.8 years as of March 31, 2024 and December 31, 2023, respectively.
Schedule of Variable Rate Loans Held-for-Investment
As of March 31, 2024, our variable rate loans held-for-investment, excluding loans for which interest income is not recognized, were as follows (dollars in thousands):
March 31, 2024Carrying
Value		Weighted-average
Spread Above Index
Commercial loans$13,698,698 3.9 %
Infrastructure loans2,385,750 4.0 %
Total variable rate loans held-for-investment$16,084,448 3.9 %
Schedule of Risk Ratings by Class of Loan
The significant credit quality indicators for our loans measured at amortized cost, which excludes loans held-for-sale, were as follows as of March 31, 2024 (dollars in thousands):
Term Loans
Amortized Cost Basis by Origination Year		Revolving Loans
Amortized Cost
Total		Total
Amortized
Cost Basis		Credit
Loss
Allowance
As of March 31, 202420242023202220212020Prior
Commercial loans:
Credit quality indicator:
LTV < 60%$— $39,940 $2,030,997 $2,722,811 $188,168 $1,082,498 $— $6,064,414 $18,658 
LTV 60% - 70%— 797,229 1,951,080 3,429,617 96,804 317,598 — 6,592,328 127,080 
LTV > 70%— 61,805 103,050 400,086 223,480 1,032,003 — 1,820,424 171,424 
Credit deteriorated— — — — — 4,925 — 4,925 4,925 
Defeased and other— 14,224 41,868 — — 14,575 — 70,667 — 
Total commercial$— $913,198 $4,126,995 $6,552,514 $508,452 $2,451,599 $— $14,552,758 $322,087 
Infrastructure loans:
Credit quality indicator:
Power$— $390,601 $— $104,679 $68,445 $734,584 $13,506 $1,311,815 $3,674 
Oil and gas— 410,029 141,259 183,794 36,101 302,752 — 1,073,935 5,885 
Total infrastructure$— $800,630 $141,259 $288,473 $104,546 $1,037,336 $13,506 $2,385,750 $9,559 
Loans held-for-sale2,689,368 — 
Total gross loans$19,627,876 $331,646 
Schedule of Activity in Allowance for Loan Losses
The following tables present the activity in our credit loss allowance for funded loans and unfunded commitments (amounts in thousands):
Funded Commitments Credit Loss Allowance
Loans Held-for-InvestmentTotal
Funded Loans
Three Months Ended March 31, 2024
CommercialInfrastructure
Credit loss allowance at December 31, 2023$298,775 $10,264 $309,039 
Credit loss provision (reversal), net
23,312 (705)22,607 
Credit loss allowance at March 31, 2024$322,087 $9,559 $331,646 

Unfunded Commitments Credit Loss Allowance (1)
Loans Held-for-InvestmentHTM Preferred
Three Months Ended March 31, 2024
CommercialInfrastructureInterests (2)CMBS (2)Total
Credit loss allowance at December 31, 2023$8,742 $564 $1,548 $74 $10,928 
Credit loss provision, net
571 23 6,645 1 7,240 
Credit loss allowance at March 31, 2024$9,313 $587 $8,193 $75 $18,168 
Memo: Unfunded commitments as of March 31, 2024 (3)
$1,035,180 $66,090 $30,686 $31,916 $1,163,872 
______________________________________________________________________________________________________________________
(1)Included in accounts payable, accrued expenses and other liabilities in our consolidated balance sheets.
(2)See Note 5 for further details.
(3)Represents amounts expected to be funded (see Note 22).
Schedule of Activity in Loan Portfolio
The activity in our loan portfolio was as follows (amounts in thousands):
Held-for-Investment Loans
Three Months Ended March 31, 2024
CommercialInfrastructureResidentialHeld-for-Sale LoansTotal Loans
Balance at December 31, 2023$15,078,589 $2,495,660 $— $2,645,637 $20,219,886 
Acquisitions/originations/additional funding131,886 133,299 — 289,508 554,693 
Capitalized interest (1)20,418 — — — 20,418 
Basis of loans sold (2)— — — (218,597)(218,597)
Loan maturities/principal repayments(892,855)(209,131)— (45,316)(1,147,302)
Discount accretion/premium amortization15,090 4,801 — — 19,891 
Changes in fair value— — — (29,013)(29,013)
Foreign currency translation loss, net
(99,145)(448)— — (99,593)
Credit loss provision, net(23,312)705 — (1,546)(24,153)
Transfer to/from other asset classifications or between segments— (48,695)— 48,695 — 
Balance at March 31, 2024$14,230,671 $2,376,191 $— $2,689,368 $19,296,230 

Held-for-Investment Loans
Three Months Ended March 31, 2023
CommercialInfrastructureResidentialHeld-for-Sale LoansTotal Loans
Balance at December 31, 2022$16,048,507 $2,352,932 $— $2,784,594 $21,186,033 
Acquisitions/originations/additional funding259,113 172,502 — 69,200 500,815 
Capitalized interest (1)27,924 130 — — 28,054 
Basis of loans sold (2)— — — (13,439)(13,439)
Loan maturities/principal repayments(256,644)(165,323)— (38,367)(460,334)
Discount accretion/premium amortization12,551 2,629 — — 15,180 
Changes in fair value— — — 8,901 8,901 
Foreign currency translation loss, net32,820 300 — — 33,120 
Credit loss provision, net(29,678)(5,339)— — (35,017)
Balance at March 31, 2023$16,094,593 $2,357,831 $— $2,810,889 $21,263,313 
______________________________________________________________________________________________________________________
(1)Represents accrued interest income on loans whose terms do not require current payment of interest.
(2)See Note 12 for additional disclosure on these transactions.