REAL ESTATE RELATED AND OTHER LOANS AND RESIDENTIAL MORTGAGE LOANS
Loans are accounted for based on management’s strategy for the loan, and on whether the loan was credit-impaired at the date of acquisition. Loans acquired with the intent to sell are classified as held-for-sale.
The following is a summary of real estate related and other loans and residential mortgage loans at September 30, 2017. The loans contain various terms including fixed and floating rates. They are generally subject to prepayment.
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September 30, 2017 |
Loan Type |
Outstanding
Face Amount |
|
Carrying
Value |
|
Loan
Count |
|
Weighted
Average
Yield |
|
Weighted Average Coupon |
|
Weighted Average Life
(Years) (A) |
|
Floating Rate Loans as % of Face Amount |
|
Delinquent Face Amount (B) |
Mezzanine Loans |
$ |
17,767 |
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|
$ |
— |
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|
2 |
|
|
— |
% |
|
8.39 |
% |
|
0.0 |
|
100.0 |
% |
|
$ |
17,767 |
|
Corporate Loans |
59,384 |
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|
147 |
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|
3 |
|
|
20.00 |
% |
|
7.69 |
% |
|
0.4 |
|
— |
% |
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59,384 |
|
Total Real Estate Related and other Loans Held-for-Sale, Net (C) |
$ |
77,151 |
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|
$ |
147 |
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5 |
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20.00 |
% |
|
7.85 |
% |
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0.3 |
|
23.0 |
% |
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$ |
77,151 |
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(A) |
The weighted average maturity is based on the timing of expected cash flows on the assets. |
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(B) |
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 September 30, 2017, $77.2 million face amount of real estate related and other loans was in non-accrual status.
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(C) |
Real estate related and other loans held-for-sale, net is recorded in other current assets on the Consolidated Balance Sheets. |
Activities relating to the carrying value of the Company’s real estate related and other loans and residential mortgage loans are as follows:
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Held-for-Sale |
|
Real Estate Related and Other Loans (A) |
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Residential Mortgage Loans (A) |
Balance at December 31, 2016 |
$ |
55,612 |
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$ |
231 |
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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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Gain on settlement of loans |
— |
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12 |
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Balance at September 30, 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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Held-For-Sale |
|
Real Estate Related and Other Loans |
|
Residential Mortgage Loans |
Balance at December 31, 2016 |
$ |
(74,691 |
) |
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$ |
(464 |
) |
Charge-offs |
— |
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|
524 |
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Valuation allowance on loans |
— |
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(60 |
) |
Balance at September 30, 2017 |
$ |
(74,691 |
) |
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$ |
— |
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The table below summarizes the geographic distribution of real estate related and other loans and residential mortgage loans at September 30, 2017:
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Real Estate Related and Other Loans |
Geographic Location |
Outstanding Face Amount |
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Percentage |
Foreign |
63,454 |
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100.0 |
% |
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$ |
63,454 |
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100.0 |
% |
Other (A) |
13,697 |
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Total |
$ |
77,151 |
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(A) |
Includes corporate loans which are not directly secured by real estate assets. |
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.
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