Loans Receivable, Net (Tables)

6 Months Ended

Jun. 30, 2024

Overall Statistics for Loans Receivable Portfolio

The following table details overall statistics for our loans receivable portfolio ($ in thousands):


	June 30, 2024			December 31, 2023
Number of loans	166			178
Principal balance	$	23,010,660		$	23,923,719
Net book value	$	21,976,910		$	23,210,076
Unfunded loan commitments(1)	$	1,826,350		$	2,430,664
Weighted-average cash coupon(2)	+ 3.35		%	+ 3.37		%
Weighted-average all-in yield(2)	+ 3.67		%	+ 3.71		%
Weighted-average maximum maturity (years)(3)	2.1			2.4

(1)Unfunded commitments will primarily be funded to finance our borrowers’ construction or development of real estate-related assets, capital improvements of existing assets, or lease-related expenditures. These commitments will generally be funded over the term of each loan, subject in certain cases to an expiration date.

(2)The weighted-average cash coupon and all-in yield are expressed as a spread over the relevant floating benchmark rates, which include SOFR, SONIA, EURIBOR, and other indices, as applicable to each loan. As of June 30, 2024, all of our loans by principal balance earned a floating rate of interest, primarily indexed to SOFR. As of December 31, 2023, substantially all of our loans by principal balance earned a floating rate of interest, primarily indexed to SOFR. Floating rate exposure as of June 30, 2024 and December 31, 2023 includes an interest rate swap we entered into with a notional amount of $229.9 million that effectively converts certain of our fixed rate loan exposure to floating rate exposure. In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, and purchase discounts, as well as the accrual of exit fees. Excludes loans accounted for under the cost-recovery and nonaccrual methods, if any.

(3)Maximum maturity assumes all extension options are exercised by the borrower, however our loans may be repaid prior to such date. As of June 30, 2024, 12% of our loans by principal balance were subject to yield maintenance or other prepayment restrictions and 88% were open to repayment by the borrower without penalty. As of December 31, 2023, 14% of our loans by principal balance were subject to yield maintenance or other prepayment restrictions and 86% were open to repayment by the borrower without penalty.

Disclosure Details Of Loan Receivable Portfolio Based On Index Floor Rates

The following table details the index rate floors for our loans receivable portfolio as of June 30, 2024 ($ in thousands):


	Loans Receivable Principal Balance
Index Rate Floors	USD		Non-USD(1)		Total
Fixed Rate	$	—	$	—	$	—
0.00% or no floor(2)(3)	5,330,317		6,135,349		11,465,666
0.01% to 1.00% floor	5,045,198		813,202		5,858,400
1.01% to 2.00% floor	2,102,954		306,758		2,409,712
2.01% to 3.00% floor	1,596,499		512,437		2,108,936
3.01% or more floor	985,652		182,294		1,167,946
Total(4)	$	15,060,620	$	7,950,040	$	23,010,660

(1)Includes Euro, British Pound Sterling, Swedish Krona, Australian Dollar, Swiss Franc, and Danish Krone currencies.

(2)Includes an interest rate swap we entered into with a notional amount of $229.9 million that effectively converts certain of our fixed rate loan exposure to floating rate exposure.

(3)Includes all impaired loans.

(4)As of June 30, 2024, the weighted-average index rate floor of our loans receivable principal balance was 0.79%. Excluding 0.0% index rate floors and loans with no floor, the weighted-average index rate floor was 1.36%.

Activity Relating to Loans Receivable Portfolio

Activity relating to our loans receivable portfolio was as follows ($ in thousands):


	Principal Balance		Deferred Fees / Other Items(1)		Net Book Value







Loans Receivable, as of December 31, 2023	$	23,923,719	$	(136,707)	$	23,787,012
Loan fundings	626,746		—		626,746
Loan repayments, sales, and cost-recovery proceeds	(1,225,525)		(35,361)		(1,260,886)
Charge-offs	(85,318)		11,768		(73,550)
Transfer to real estate owned	(60,203)		—		(60,203)
Transfer to other assets(2)	(10,795)		—		(10,795)
Payment-in-kind interest, net of interest received	6,164		—		6,164
Unrealized (loss) gain on foreign currency translation	(164,128)		755		(163,373)
Deferred fees and other items	—		(13,967)		(13,967)
Amortization of fees and other items	—		33,700		33,700
Loans Receivable, as of June 30, 2024	$	23,010,660	$	(139,812)	$	22,870,848
CECL reserve					(893,938)
Loans Receivable, net, as of June 30, 2024					$	21,976,910

(1)Other items primarily consist of purchase and sale discounts or premiums, exit fees, deferred origination expenses, and cost-recovery proceeds.

(2)This amount relates to: (i) a loan that was partially satisfied through the issuance of a note receivable; and (ii) proceeds from a loan repayment that are held in escrow, both of which are included within other assets in our consolidated balance sheets. See Note 5 for further information.

Property Type and Geographic Distribution of Properties Securing Loans in Portfolio

The tables below detail the property type and geographic distribution of the properties securing the loans in our portfolio ($ in thousands):


June 30, 2024
Property Type	Number of Loans	Net Book Value		Total Loan Exposure(1)		Net Loan Exposure(2)		Net Loan Exposure Percentage of Portfolio
Office	51	$	9,047,507	$	9,374,141	$	7,348,500	36%
Multifamily	68	5,838,389		6,006,124		5,696,575		27
Hospitality	20	3,786,040		3,823,926		3,654,726		18
Industrial	12	2,183,312		2,193,009		2,159,637		10
Retail	6	713,181		738,450		684,155		3
Life Sciences / Studio	4	392,678		589,211		391,463		2
Other	5	909,741		910,648		878,974		4
Total loans receivable	166	$	22,870,848	$	23,635,509	$	20,814,030	100%
CECL reserve		(893,938)
Loans receivable, net		$	21,976,910

Geographic Location	Number of Loans	Net Book Value		Total Loan Exposure(1)		Net Loan Exposure(2)		Net Loan Exposure Percentage of Portfolio
United States
Sunbelt	61	$	5,510,438	$	5,615,694	$	5,119,961	24%
Northeast	25	5,111,794		5,162,565		3,908,921		19
West	29	2,895,255		3,516,394		2,683,597		13
Midwest	9	943,073		947,317		783,171		4
Northwest	6	433,217		436,078		433,339		2
Subtotal	130	14,893,777		15,678,048		12,928,989		62
International
United Kingdom	18	3,163,864		3,128,584		3,109,414		15
Australia	5	1,414,495		1,421,417		1,417,265		7
Ireland	3	1,186,407		1,189,435		1,181,231		6
Spain	3	1,075,481		1,077,083		1,040,229		5
Sweden	1	448,421		450,288		449,900		2
Other Europe	5	631,014		632,654		629,396		3
Other International	1	57,389		58,000		57,606		—

Subtotal	36	7,977,071		7,957,461		7,885,041		38
Total loans receivable	166	$	22,870,848	$	23,635,509	$	20,814,030	100%
CECL reserve		(893,938)
Loans receivable, net		$	21,976,910


December 31, 2023
Property Type	Number of Loans	Net Book Value		Total Loan Exposure(1)		Net Loan Exposure(2)		Net Loan Exposure Percentage of Portfolio
Office	54	$	9,253,609	$	10,072,963	$	7,956,472	36%
Multifamily	73	5,876,128		5,997,886		5,756,192		26
Hospitality	23	4,161,525		4,194,588		3,804,091		17
Industrial	12	2,189,808		2,201,497		2,190,914		10
Retail	6	814,241		834,825		785,573		4
Life Sciences/Studio	4	385,098		561,517		384,219		2
Other	6	1,106,603		1,107,752		1,074,527		5
Total loans receivable	178	$	23,787,012	$	24,971,028	$	21,951,988	100%
CECL reserve		(576,936)
Loans receivable, net		$	23,210,076

Geographic Location	Number of Loans	Net Book Value		Total Loan Exposure(1)		Net Loan Exposure(2)		Net Loan Exposure Percentage of Portfolio
United States
Sunbelt	65	$	5,658,172	$	5,786,395	$	5,402,732	25%
Northeast	30	5,386,940		5,426,951		4,340,660		20
West	31	3,088,644		4,108,074		2,910,559		13
Midwest	9	944,132		945,222		913,973		4
Northwest	6	382,591		385,978		383,382		2
Subtotal	141	15,460,479		16,652,620		13,951,306		64
International
United Kingdom	20	3,470,120		3,439,678		3,181,489		14
Australia	5	1,429,144		1,437,870		1,432,146		7
Ireland	3	1,191,068		1,197,337		1,188,554		5
Spain	3	1,117,790		1,120,375		1,078,811		5
Sweden	1	474,262		476,718		476,281		2

Other Europe	5	644,149		646,430		643,401		3
Subtotal	37	8,326,533		8,318,408		8,000,682		36
Total loans receivable	178	$	23,787,012	$	24,971,028	$	21,951,988	100%
CECL reserve		(576,936)
Loans receivable, net		$	23,210,076

(1)Total loan exposure reflects our aggregate exposure to each loan investment. As of December 31, 2023, total loan exposure, includes (i) loans with an outstanding principal balance of $23.9 billion that are included in our consolidated financial statements, (ii) $1.1 billion of non-consolidated senior interests in loans we have sold, which are not included in our consolidated financial statements, and excludes (iii) $100.9 million of junior loan interests that we have sold, but that remain included in our consolidated financial statements. See Note 2 for further discussion of loan participations sold.

(2)Net loan exposure reflects the amount of each loan that is subject to risk of credit loss to us as of December 31, 2023, which is our total loan exposure net of (i) $1.1 billion of non-consolidated senior interests, (ii) $1.0 billion of asset-specific debt, (iii) $236.8 million of senior loan participations sold, (iv) $53.0 million of cost-recovery proceeds, and (v) our total loans receivable CECL reserve of $576.9 million. Our non-consolidated senior interests, asset-specific debt, and loan participations sold are structurally non-recourse and term-matched to the corresponding collateral loans.

Net Book Value, Total Loan Exposure and Net Loan Exposure of Loans Receivable Based on Internal Risk Ratings and Credit Quality Indicators

The following table allocates the net book value, total loan exposure, and net loan exposure balances based on our internal risk ratings ($ in thousands):


	June 30, 2024
Risk Rating	Number of Loans	Net Book Value		Total Loan Exposure(1)		Net Loan Exposure(2)
1	21	$	1,321,337	$	1,322,499	$	1,321,373
2	27	5,408,385		5,423,892		4,541,982
3	79	10,324,814		10,487,838		9,947,533
4	20	2,879,736		3,384,458		2,821,958
5	19	2,936,576		3,016,822		2,181,184
Total loans receivable	166	$	22,870,848	$	23,635,509	$	20,814,030
CECL reserve		(893,938)
Loans receivable, net		$	21,976,910

	December 31, 2023
Risk Rating	Number of Loans	Net Book Value		Total Loan Exposure(1)		Net Loan Exposure(2)
1	15	$	763,101	$	811,217	$	763,223
2	36	6,143,184		6,618,319		5,095,395
3	99	12,277,518		12,573,282		11,964,620
4	15	2,725,930		3,036,837		2,668,025
5	13	1,877,279		1,931,373		1,460,725
Total loans receivable	178	$	23,787,012	$	24,971,028	$	21,951,988
CECL reserve		(576,936)
Loans receivable, net		$	23,210,076

(1)Total loan exposure reflects our aggregate exposure to each loan investment. As of June 30, 2024, total loan exposure, includes (i) loans with an outstanding principal balance of $23.0 billion that are included in our consolidated financial statements, (ii) $725.4 million of non-consolidated senior interests in loans we have sold, which are not included in our consolidated financial statements, and excludes (iii) $100.6 million of junior loan interests that we have sold, but that remain included in our consolidated financial statements. As of December 31, 2023, total loan exposure, includes (i) loans with an outstanding principal balance of $23.9 billion that are included in our consolidated financial statements (ii) $1.1 billion of non-consolidated senior interests in loans we have sold, which are not included in our consolidated financial statements, and excludes (iii) $100.9 million of junior loan interests that we have sold, but that remain included in our consolidated financial statements. See Note 2 for further discussion of loan participations sold.

(2)Net loan exposure reflects the amount of each loan that is subject to risk of credit loss to us as of June 30, 2024, which is our total loan exposure net of (i) $725.4 million of non-consolidated senior interests, (ii) $1.1 billion of asset-specific debt, (iii) $76.3 million of cost-recovery proceeds, and (iv) our total loans receivable CECL reserve of $893.9 million. Our net loan exposure as of December 31, 2023 is our total loan exposure net of (i) $1.1 billion of non-consolidated senior interests, (ii) $1.0 billion of asset-specific debt, (iii) $236.8 million of senior loan participations sold, and (iv) $53.0 million of cost-recovery proceeds, and (v) our total loans receivable CECL reserve of $576.9 million. Our non-consolidated senior interests, asset-specific debt, and loan participations sold are structurally non-recourse and term-matched to the corresponding collateral loans.

Our primary credit quality indicator is our risk ratings, which are further discussed above. The following tables present the net book value of our loan portfolio as of June 30, 2024 and December 31, 2023, respectively, by year of origination, investment pool, and risk rating ($ in thousands):


	Net Book Value of Loans Receivable by Year of Origination(1)
	As of June 30, 2024
Risk Rating	2024		2023		2022		2021		2020		Prior		Total
U.S. loans
1	$	—	$	—	$	151,476	$	482,099	$	60,322	$	106,909	$	800,806
2	—		—		196,840		1,711,176		—		1,584,215		3,492,231
3	57,389		—		1,614,960		2,977,239		578,195		531,329		5,759,112
4	—		—		152,758		1,004,299		—		805,381		1,962,438
5	—		—		—		—		—		—		—
Total U.S. loans	$	57,389	$	—	$	2,116,034	$	6,174,813	$	638,517	$	3,027,834	$	12,014,587
Non-U.S. loans
1	$	—	$	—	$	134,393	$	386,138	$	—	$	—	$	520,531
2	—		—		637,226		810,590		90,553		377,785		1,916,154
3	—		—		628,901		1,079,597		—		1,529,678		3,238,176
4	—		—		—		—		—		347,072		347,072
5	—		—		—		—		—		—		—
Total Non-U.S. loans	$	—	$	—	$	1,400,520	$	2,276,325	$	90,553	$	2,254,535	$	6,021,933
Unique loans
1	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2	—		—		—		—		—		—		—
3	—		—		876,785		—		—		450,741		1,327,526
4	—		—		—		—		—		570,226		570,226
5	—		—		—		—		—		—		—
Total unique loans	$	—	$	—	$	876,785	$	—	$	—	$	1,020,967	$	1,897,752
Impaired loans
1	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2	—		—		—		—		—		—		—
3	—		—		—		—		—		—		—
4	—		—		—		—		—		—		—
5	—		—		580,098		923,842		138,841		1,293,795		2,936,576
Total impaired loans	$	—	$	—	$	580,098	$	923,842	$	138,841	$	1,293,795	$	2,936,576
Total loans receivable
1	$	—	$	—	$	285,869	$	868,237	$	60,322	$	106,909	$	1,321,337
2	—		—		834,066		2,521,766		90,553		1,962,000		5,408,385
3	57,389		—		3,120,646		4,056,836		578,195		2,511,748		10,324,814
4	—		—		152,758		1,004,299		—		1,722,679		2,879,736
5	—		—		580,098		923,842		138,841		1,293,795		2,936,576
Total loans receivable	$	57,389	$	—	$	4,973,437	$	9,374,980	$	867,911	$	7,597,131	$	22,870,848
CECL reserve													(893,938)
Loans receivable, net													$	21,976,910

Gross charge-offs(2)	—		—		—		(54,048)		—		(19,502)		$	(73,550)

(1)Date loan was originated or acquired by us. Origination dates are subsequently updated to reflect material loan modifications.

(2)Represents charge-offs by year of origination during the six months ended June 30, 2024.


	Net Book Value of Loans Receivable by Year of Origination(1)
	As of December 31, 2023
Risk Rating	2023		2022		2021		2020		2019		Prior		Total
U.S. loans
1	$	—	$	172,575	$	443,739	$	39,877	$	52,939	$	53,971	$	763,101
2	—		195,755		1,883,162		32,179		200,917		1,438,175		3,750,188
3	—		1,870,610		3,730,842		613,688		380,726		359,257		6,955,123
4	—		317,665		924,070		—		193,168		679,885		2,114,788
5	—		—		—		—		—		—		—
Total U.S. loans	$	—	$	2,556,605	$	6,981,813	$	685,744	$	827,750	$	2,531,288	$	13,583,200
Non-U.S. loans
1	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2	—		1,034,196		1,230,762		93,423		34,615		—		2,392,996
3	—		643,018		1,084,137		—		2,249,931		—		3,977,086
4	—		—		—		—		—		—		—
5	—		—		—		—		—		—		—
Total Non-U.S. loans	$	—	$	1,677,214	$	2,314,899	$	93,423	$	2,284,546	$	—	$	6,370,082
Unique loans
1	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2	—		—		—		—		—		—		—
3	—		894,599		—		—		264,457		186,253		1,345,309
4	—		—		—		—		—		611,142		611,142
5	—		—		—		—		—		—		—
Total unique loans	$	—	$	894,599	$	—	$	—	$	264,457	$	797,395	$	1,956,451
Impaired loans
1	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2	—		—		—		—		—		—		—
3	—		—		—		—		—		—		—
4	—		—		—		—		—		—		—
5	—		—		508,264		140,000		—		1,229,015		1,877,279
Total impaired loans	$	—	$	—	$	508,264	$	140,000	$	—	$	1,229,015	$	1,877,279
Total loans receivable
1	$	—	$	172,575	$	443,739	$	39,877	$	52,939	$	53,971	$	763,101
2	—		1,229,951		3,113,924		125,602		235,532		1,438,175		6,143,184
3	—		3,408,227		4,814,979		613,688		2,895,114		545,510		12,277,518
4	—		317,665		924,070		—		193,168		1,291,027		2,725,930
5	—		—		508,264		140,000		—		1,229,015		1,877,279
Total loans receivable	$	—	$	5,128,418	$	9,804,976	$	919,167	$	3,376,753	$	4,557,698	$	23,787,012
CECL reserve													(576,936)
Loans receivable, net													$	23,210,076

(1)Date loan was originated or acquired by us. Origination dates are subsequently updated to reflect material loan modifications.

Schedule Of Current Expected Credit Loss Reserve By Pool

The following table presents the activity in our loans receivable CECL reserve by investment pool for the three and six months ended June 30, 2024 and 2023 ($ in thousands):


	U.S. Loans(1)		Non-U.S. Loans		Unique Loans		Impaired Loans		Total
Loans Receivable, Net
CECL reserves as of December 31, 2023	$	78,335	$	31,560	$	49,371	$	417,670	$	576,936
(Decrease) increase in CECL reserves	(3,807)		(770)		(5,918)		245,942		235,447
Charge-offs of CECL reserves	—		—		—		(61,013)		(61,013)
CECL reserves as of March 31, 2024	$	74,528	$	30,790	$	43,453	$	602,599	$	751,370
(Decrease) increase in CECL reserves	(11,997)		(2,639)		423		169,318		155,105
Charge-offs of CECL reserves	—		—		—		(12,537)		(12,537)
CECL reserve as of June 30, 2024	$	62,531	$	28,151	$	43,876	$	759,380	$	893,938







CECL reserves as of December 31, 2022	$	67,880	$	22,519	$	45,960	$	189,778	$	326,137
Increase (decrease) in CECL reserves	5,314		(2,823)		483		7,480		10,454

CECL reserves as of March 31, 2023	$	73,194	$	19,696	$	46,443	$	197,258	$	336,591
Increase (decrease) in CECL reserves	1,199		9,296		(354)		17,143		27,284

CECL reserve as of June 30, 2023	$	74,393	$	28,992	$	46,089	$	214,401	$	363,875

(1)Includes one U.S. dollar-denominated loan that is located in Bermuda.