| REAL ESTATE RELATED AND OTHER LOANS, RESIDENTIAL MORTGAGE LOANS |
LOANS
The following is a summary of corporate and residential mortgage loans. The loans contain various terms, including fixed and floating rates, self-amortizing and interest only. They are generally subject to prepayment.
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December 31, 2017 |
|
December 31, 2016 |
Loan Type |
|
Outstanding
Face Amount |
|
Carrying
Value (A) |
|
Loan
Count |
|
Wtd.
Avg
Yield |
|
Wtd
Avg
Coupon |
|
Wtd
Avg
Life
(Years) (B) |
|
Floating Rate
Loans as a %
of Face
Amount |
|
Delinquent
Face Amount
(C) |
|
Carrying
Value |
|
Loan Count |
|
Wtd. Avg.
Yield |
Corporate Loans (D) |
|
$ |
13,697 |
|
|
$ |
147 |
|
|
1 |
|
|
20.00 |
% |
|
10.00 |
% |
|
1.5 |
|
0.0 |
% |
|
$ |
13,697 |
|
|
$ |
55,612 |
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|
4 |
|
22.49 |
% |
Total Loans Held-for-Sale, Net (E) |
|
$ |
13,697 |
|
|
$ |
147 |
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|
1 |
|
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20.00 |
% |
|
10.00 |
% |
|
1.5 |
|
0.0 |
% |
|
$ |
13,697 |
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$ |
55,612 |
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4 |
|
22.49 |
% |
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Residential Mortgage Loans Held-for-Sale, Net (F) |
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$ |
— |
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$ |
— |
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— |
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— |
% |
|
— |
% |
|
0.0 |
|
— |
% |
|
$ |
— |
|
|
$ |
231 |
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3 |
|
3.40 |
% |
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(A) |
The aggregate United States federal income tax basis for such assets at December 31, 2017 was approximately $12.9 million (unaudited).
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(B) |
The weighted average maturity is based on the timing of expected cash flows on the assets. |
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(C) |
Includes loans that are 60 days or more past due (including loans that are in foreclosure and borrowers in bankruptcy) or considered real estate owned (“REO”). As of December 31, 2017 and 2016, $13.7 million and $77.2 million face amount of corporate loans, respectively, was on non-accrual status.
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(D) |
Corporate loans are not directly secured by real estate assets. |
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(E) |
Loans held-for-sale, net is recorded in other current assets on the Consolidated Balance Sheets. |
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(F) |
Residential mortgage loans held-for-sale, net is recorded in other current assets on the Consolidated Balance Sheets. |
The Company's investments in loans were classified as held-for-sale as of December 31, 2017 and December 31, 2016. Loans held-for-sale are carried on the Consolidated Balance Sheets at the lower of cost or fair value.
In April 2016, the Company sold a mezzanine loan with a face amount of $19.4 million at par. The Company subsequently repaid $11.7 million of notes payable that were collateralized by the loan.
In September 2016, the Company received a pay down on the resorts-related loan in the amount of $109.9 million. In August 2017, the Company received the final pay down on the resorts-related loan in the amount of $69.5 million including accrued interest. The Company recognized discount accretion of $5.5 million as part of the payoff, recorded in interest and investment income on the Consolidated Statements of Operations.
Activities relating to the carrying value of loans, held-for-sale and residential mortgage loans, held-for-sale are as follows:
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Loans, Held-for-Sale (A) |
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Residential
Mortgage Loans, Held- for-Sale (A) |
Balance at December 31, 2014 |
$ |
230,200 |
|
|
$ |
3,854 |
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Purchases / additional fundings |
— |
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— |
|
Interest accrued to principal balance |
27,717 |
|
|
— |
|
Principal pay downs |
(46,696 |
) |
|
(134 |
) |
Sales |
(55,574 |
) |
|
(2,925 |
) |
Valuation allowance on loans |
(9,284 |
) |
|
(257 |
) |
Accretion of loan discount and other amortization |
3,203 |
|
|
— |
|
Other |
(368 |
) |
|
(6 |
) |
Balance at December 31, 2015 |
$ |
149,198 |
|
|
$ |
532 |
|
Purchases / additional fundings |
— |
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— |
|
Interest accrued to principal balance |
29,025 |
|
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— |
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Principal pay downs |
(109,892 |
) |
|
(40 |
) |
Sales |
(19,433 |
) |
|
— |
|
Valuation allowance on loans |
(3,826 |
) |
|
(213 |
) |
Accretion of loan discount and other amortization |
10,540 |
|
|
— |
|
Loss on settlement of loans |
— |
|
|
(48 |
) |
Balance at December 31, 2016 |
$ |
55,612 |
|
|
$ |
231 |
|
Purchases / additional fundings |
— |
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— |
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Interest accrued to principal balance |
8,458 |
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— |
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Settlements |
(69,455 |
) |
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(183 |
) |
Valuation allowance on loans |
— |
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|
(60 |
) |
Accretion of loan discount and other amortization |
5,532 |
|
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— |
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Other income |
— |
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12 |
|
Balance at December 31, 2017 |
$ |
147 |
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|
$ |
— |
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(A) |
Recorded in other current assets on the Consolidated Balance Sheets. |
The following is a rollforward of the related loss allowance:
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Loans, Held-for-Sale |
|
Residential Mortgage Loans, Held-for-Sale |
Balance at December 31, 2014 |
|
$ |
(75,926 |
) |
|
$ |
(154 |
) |
Charge-offs (A) |
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14,345 |
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|
160 |
|
Valuation allowance on loans |
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(9,284 |
) |
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(257 |
) |
Balance at December 31, 2015 |
|
$ |
(70,865 |
) |
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$ |
(251 |
) |
Charge-offs (A) |
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— |
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— |
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Valuation allowance on loans |
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(3,826 |
) |
|
(213 |
) |
Balance at December 31, 2016 |
|
$ |
(74,691 |
) |
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$ |
(464 |
) |
Charge-offs (A) |
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63,453 |
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|
524 |
|
Valuation allowance on loans |
|
— |
|
|
(60 |
) |
Balance at December 31, 2017 |
|
$ |
(11,238 |
) |
|
$ |
— |
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(A) |
The charge-offs for loans, held-for-sale represent five, zero and four loans which were written off, sold, restructured, or paid off at a discounted price during 2017, 2016 and 2015, respectively.
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