Mortgage loan receivables held for sale

^[1]

(18,500)

(17,900)

^[1]

174,214

182,439

Real estate securities

^[1]

1,911,456

1,410,126

Real estate and related lease intangibles, net

^[1]

981,333

998,022

Investments in and advances to unconsolidated joint ventures

^[1]

51,419

40,354

FHLB stock

^[1]

61,619

57,915

Derivative instruments

^[1]

22

0

Due from brokers

^[1]

3,962

0

Accrued interest receivable

^[1]

22,699

27,214

Other assets

^[1]

78,454

157,862

Amount payable pursuant to tax receivable agreement

^[1]

6,619,874

6,272,872

Liabilities

Debt obligations, net

^[1]

4,860,687

4,452,574

Due to brokers

^[1]

7,000

1,301

Derivative instruments

^[1]

82

975

^[1]

1,559

1,570

Dividends payable

^[1]

2,384

37,316

Accrued expenses

^[1]

45,761

82,425

Other liabilities

^[1]

63,151

53,076

Total liabilities

^[1]

4,980,624

4,629,237

Commitments and contingencies (Note 18)

^[1]

0

Equity

Additional paid-in capital

^[1]

1,529,599

1,471,157

Treasury stock, 3,120,012 and 2,701,162 shares, at cost

^[1]

(41,556)

(32,815)

Retained earnings (dividends in excess of earnings)

^[1]

(39,860)

11,342

Accumulated other comprehensive income (loss)

^[1]

10,367

(4,649)

Total shareholders’ equity

^[1]

1,458,670

1,445,153

Noncontrolling interest in operating partnership

^[1]

171,731

188,427

Noncontrolling interest in consolidated joint ventures

^[1]

8,849

10,055

Total equity

^[1]

1,639,250

1,643,635

Total liabilities and equity

^[1]

6,619,874

6,272,872

Class A Common Stock

Equity

Common stock

^[1]

108

105

Class B Common Stock

Equity

Common stock

^[1]

$ 12

$ 13

[1]	Includes amounts relating to consolidated variable interest entities. See Note 10.

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2019	Dec. 31, 2018
Treasury stock (in shares)	3,120,012	2,701,162
Class A Common Stock
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	600,000,000	600,000,000
Common stock, issued (in shares)	110,693,832	106,642,335
Common stock, outstanding (in shares)	107,573,820	103,941,173
Class B Common Stock
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	100,000,000	100,000,000
Common stock, issued (in shares)	12,158,933	13,117,419
Common stock, outstanding (in shares)	12,158,933	13,117,419

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Net interest income
Interest income	$ 82,251	$ 90,386	$ 254,040	$ 253,822
Interest expense	51,397	51,476	155,015	144,606
Net interest income	30,854	38,910	99,025	109,216
Provision for loan losses	0	10,300	600	13,600
Net interest income after provision for loan losses	30,854	28,610	98,425	95,616
Other income (loss)
Operating lease income	24,405		81,106
Operating lease income		24,997		79,306
Sale of loans, net	11,247	1,861	38,589	12,893
Realized gain (loss) on securities	3,396	(2,554)	10,726	(4,896)
Unrealized gain (loss) on equity securities	254	0	1,341	0
Unrealized gain (loss) on Agency interest-only securities	16	142	38	456
Realized gain (loss) on sale of real estate, net	2,082	63,704	963	96,341
Impairment of real estate	0	0	(1,350)	0
Fee and other income	5,166	4,851	17,047	17,579
Net result from derivative transactions	(9,465)	7,115	(35,956)	29,156
Earnings (loss) from investment in unconsolidated joint ventures	1,094	401	3,617	466
Gain (loss) on extinguishment/defeasance of debt	0	(4,323)	(1,070)	(4,392)
Total other income (loss)	38,195	96,194	115,051	226,909
Costs and expenses
Salaries and employee benefits	14,319	15,792	52,800	46,754
Operating expenses	5,314	5,464	16,727	16,608
Real estate operating expenses	6,270	7,152	17,776	23,806
Fee expense	2,056	1,311	4,951	2,953
Depreciation and amortization	9,030	10,417	29,192	31,896
Total costs and expenses	36,989	40,136	121,446	122,017
Income (loss) before taxes	32,060	84,668	92,030	200,508
Income tax expense (benefit)	1,112	1,204	478	5,679
Net income (loss)	30,948	83,464	91,552	194,829
Net (income) loss attributable to noncontrolling interest in consolidated joint ventures	(64)	(7,843)	691	(16,132)
Net (income) loss attributable to noncontrolling interest in operating partnership	$ (3,308)	$ (8,991)	$ (10,247)	$ (22,786)
Earnings per share:
Basic (in dollars per share)	$ 0.26	$ 0.69	$ 0.78	$ 1.62
Diluted (in dollars per share)	$ 0.26	$ 0.67	$ 0.77	$ 1.61
Weighted average shares outstanding:
Basic (in shares)	106,004,152	96,935,986	105,264,752	96,317,513
Diluted (in shares)	106,603,713	110,650,253	106,232,581	110,482,991
Class A Common Stock
Costs and expenses
Net income (loss) attributable to Class A common shareholders	$ 27,576	$ 66,630	$ 81,996	$ 155,911
Earnings per share:
Basic (in dollars per share)	$ 0.26	$ 0.69	$ 0.78	$ 1.62
Diluted (in dollars per share)	$ 0.26	$ 0.67	$ 0.77	$ 1.61
Weighted average shares outstanding:
Basic (in shares)	106,004,152	96,935,986	105,264,752	96,317,513
Diluted (in shares)	106,603,713	110,650,253	106,232,581	110,482,991
Dividends per share of Class A common stock (in dollars per share)	$ 0.340	$ 0.325	$ 1.020	$ 0.965

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Net income (loss)	$ 30,948	$ 83,464	$ 91,552	$ 194,829
Unrealized gain (loss) on securities, net of tax:
Unrealized gain (loss) on real estate securities, available for sale	1,389	(1,109)	27,414	(14,554)
Reclassification adjustment for (gain) loss included in net income (loss)	(3,398)	2,554	(10,639)	4,896
Total other comprehensive income (loss)	(2,009)	1,445	16,775	(9,658)
Comprehensive income (loss)	28,939	84,909	108,327	185,171
Comprehensive (income) loss attributable to noncontrolling interest in consolidated joint ventures	(64)	(7,843)	691	(16,132)
Comprehensive income (loss) of combined Class A common shareholders and Operating Partnership unitholders	28,875	77,066	109,018	169,039
Comprehensive (income) loss attributable to noncontrolling interest in operating partnership	(3,104)	(9,160)	(12,087)	(21,358)
Class A Common Stock
Unrealized gain (loss) on securities, net of tax:
Comprehensive income (loss) attributable to Class A common shareholders	$ 25,771	$ 67,906	$ 96,931	$ 147,681

Consolidated Statements of Changes in Equity - USD ($)
$ in Thousands

Total

Class A Common Stock

Class B Common Stock

Common Stock

Class A Common Stock

Common Stock

Class B Common Stock

Additional Paid- in-Capital

Treasury Stock

Retained Earnings (Dividends in Excess of Earnings)

Accumulated Other Comprehensive Income (Loss)

Operating Partnership

Consolidated Joint Ventures

Beginning Balance (in shares) at Dec. 31, 2017

93,641,000

17,668,000

Beginning Balance at Dec. 31, 2017

$ 1,488,146

$ 94

$ 18

$ 1,306,136

$ (31,956)

$ (39,112)

$ (212)

$ 240,861

$ 12,317

5,779

(37,591)

(13,191)

(24,400)

Grants of restricted stock (in shares)

6,667

34,000

Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock and units (in shares)

(56,000)

Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock and units

(837)

Forfeitures (in shares)

(26,000)

Exchange of noncontrolling interest for common stock (in shares)

(94,206)

4,549,832

(4,549,832)

4,550,000

(4,550,000)

Exchange of noncontrolling interest for common stock

514

$ 5

$ (5)

63,109

(167)

(62,428)

194,829

155,911

22,786

16,132

Rebalancing of ownership percentage between Company and Operating Partnership

(9,658)

(8,230)

(1,428)

(896)

27

869

Ending Balance (in shares) at Sep. 30, 2018

98,143,000

13,118,000

Ending Balance at Sep. 30, 2018

1,553,643

$ 99

$ 13

1,375,016

(32,793)

22,593

(8,582)

187,469

9,828

Beginning Balance (in shares) at Jun. 30, 2018

97,938,000

13,318,000

Beginning Balance at Jun. 30, 2018

1,512,462

$ 99

$ 13

1,370,092

(32,793)

(12,106)

(9,855)

185,158

11,854

739

(14,900)

(4,292)

(10,608)

Grants of restricted stock (in shares)

2,162

5,000

Exchange of noncontrolling interest for common stock (in shares)

(31,931)

200,000

(200,000)

Exchange of noncontrolling interest for common stock

202

$ 0

3,000

(24)

(2,774)

83,464

66,630

8,991

7,843

Rebalancing of ownership percentage between Company and Operating Partnership

1,445

1,276

169

(238)

21

217

Ending Balance (in shares) at Sep. 30, 2018

98,143,000

13,118,000

Ending Balance at Sep. 30, 2018

1,553,643

$ 99

$ 13

1,375,016

(32,793)

22,593

(8,582)

187,469

9,828

Beginning Balance (in shares) at Dec. 31, 2018

103,941,000

13,118,000

Beginning Balance at Dec. 31, 2018

1,643,635

^[1]

$ 105

$ 13

1,471,157

(32,815)

11,342

(4,649)

188,427

10,055

498

(13,834)

(12,821)

(1,013)

Grants of restricted stock (in shares)

18,336

1,478,000

Grants of restricted stock

$ 1

(1)

Purchase of treasury stock (in shares)

(40,000)

Purchase of treasury stock

(637)

Re-issuance of treasury stock (in shares)

92,000

Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock and units (in shares)

(462,000)

Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock and units

(8,104)

Forfeitures (in shares)

(9,000)

Stock dividends (in shares)

(109,375)

1,434,000

181,000

Stock dividends

0

$ 1

23,822

(23,823)

Exchange of noncontrolling interest for common stock (in shares)

1,140,000

(1,140,000)

Exchange of noncontrolling interest for common stock

404

$ 1

$ (1)

16,449

64

(16,109)

91,552

81,996

10,247

(691)

Rebalancing of ownership percentage between Company and Operating Partnership

16,775

14,935

1,840

(164)

17

147

Ending Balance (in shares) at Sep. 30, 2019

107,574,000

12,159,000

Ending Balance at Sep. 30, 2019

1,639,250

^[1]

$ 108

$ 12

1,529,599

(41,556)

(39,860)

10,367

171,731

8,849

Beginning Balance (in shares) at Jun. 30, 2019

107,551,000

12,159,000

Beginning Balance at Jun. 30, 2019

1,648,074

$ 108

$ 12

1,526,469

(41,535)

(30,847)

12,171

172,466

9,230

306

(5,034)

(4,283)

(751)

Re-issuance of treasury stock (in shares)

3,575

24,000

Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock and units (in shares)

(1,000)

Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock and units

(21)

(36,589)

30,948

27,576

3,308

64

Rebalancing of ownership percentage between Company and Operating Partnership

(2,009)

(1,804)

(205)

(445)

445

Ending Balance (in shares) at Sep. 30, 2019

107,574,000

12,159,000

Ending Balance at Sep. 30, 2019

$ 1,639,250

^[1]

$ 108

$ 12

$ 1,529,599

$ (41,556)

$ (39,860)

$ 10,367

$ 171,731

$ 8,849

[1]	Includes amounts relating to consolidated variable interest entities. See Note 10.

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net income (loss)	$ 91,552	$ 194,829
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
(Gain) loss on extinguishment/defeasance of debt	1,070	4,392
Depreciation and amortization	29,192	31,896
Unrealized (gain) loss on derivative instruments	(889)	(1,356)
Unrealized (gain) loss on equity securities	(1,341)	0
Unrealized (gain) loss on Agency interest-only securities	(38)	(456)
Unrealized (gain) loss on investment in mutual fund	(308)	(204)
Provision for loan losses	600	13,600
Impairment of real estate	1,350	0
Amortization of equity based compensation	18,336	6,667
Amortization of deferred financing costs included in interest expense	8,460	8,020
Amortization of premium on mortgage loan financing	(1,300)	(762)
Amortization of above- and below-market lease intangibles	(867)	(1,286)
Amortization of premium/(accretion) of discount and other fees on loans	(14,405)	(13,795)
Amortization of premium/(accretion) of discount and other fees on securities	82	2,944
Realized (gain) loss on sale of mortgage loan receivables held for sale	(38,589)	(12,893)
Realized (gain) loss on securities	(10,726)	4,896
Realized (gain) loss on sale of real estate, net	(963)	(96,341)
Realized gain on sale of derivative instruments	84	192
Origination of mortgage loan receivables held for sale	(554,115)	(1,115,218)
Purchases of mortgage loan receivables held for sale	(9,934)	0
Repayment of mortgage loan receivables held for sale	492	1,324
Proceeds from sales of mortgage loan receivables held for sale	574,303	926,889
(Income) loss from investments in unconsolidated joint ventures in excess of distributions received	(3,617)	(466)
Distributions from operations of investment in unconsolidated joint ventures	3,067	0
Deferred tax asset (liability)	7,405	(4,484)
Changes in operating assets and liabilities:
Accrued interest receivable	4,275	(1,968)
Other assets	(5,921)	7,503
Accrued expenses and other liabilities	(33,010)	(5,262)
Net cash provided by (used in) operating activities	64,245	(51,339)
Cash flows from investing activities:
Origination of mortgage loan receivables held for investment	(985,825)	(1,240,894)
Repayment of mortgage loan receivables held for investment	1,191,908	755,404
Purchases of real estate securities	(1,192,852)	(303,021)
Repayment of real estate securities	178,468	93,185
Basis recovery of Agency interest-only securities	9,339	14,898
Proceeds from sales of real estate securities	534,249	306,109
Purchases of real estate	(13,905)	(113,903)
Capital improvements of real estate	(3,606)	(4,822)
Proceeds from sale of real estate	10,794	153,398
Capital contributions and advances to investment in unconsolidated joint ventures	(56,393)	(370)
Capital distribution from investment in unconsolidated joint ventures	46,019	1,250
Capitalization of interest on investment in unconsolidated joint ventures	(142)	(1,074)
Purchase of FHLB stock	(3,704)	0
Proceeds from sale of FHLB stock	0	20,000
Purchase of derivative instruments	(210)	(305)
Sale of derivative instruments	101	114
Net cash provided by (used in) investing activities	(285,759)	(320,031)
Cash flows from financing activities:
Deferred financing costs paid	(4,453)	(2,975)
Proceeds from borrowings under debt obligations	10,186,669	4,401,648
Repayment of borrowings under debt obligations	(9,771,014)	(3,969,654)
Cash dividends paid to Class A common shareholders	(144,306)	(122,770)
Payment of liability assumed in exchange for shares for the minimum withholding taxes on vesting restricted stock	(8,106)	(837)
Purchase of treasury stock	(637)	0
Net cash provided by (used in) financing activities	244,817	273,600
Net increase (decrease) in cash, cash equivalents and restricted cash	23,303	(97,770)
Cash, cash equivalents and restricted cash at beginning of period	98,450	182,683
Cash, cash equivalents and restricted cash at end of period	121,753	84,913
Supplemental information:
Cash paid for interest, net of amounts capitalized	164,429	151,868
Cash paid (received) for income taxes	4,817	5,718
Non-cash investing and financing activities:
Securities and derivatives purchased, not settled	7,000	14
Securities and derivatives sold, not settled	3,962	0
Repayment in transit of mortgage loans receivable held for investment (other assets)	6,120	31,764
Repayment of mortgage loans receivable held for sale	128	0
Settlement of mortgage loan receivable held for investment by real estate, net	(17,851)	0
Transfer from mortgage loans receivable held for sale to mortgage loans receivable held for investment, net, at amortized cost	35,940	55,403
Proceeds from sale of real estate	0	1,421
Real estate acquired in settlement of mortgage loan receivable held for investment, net	17,851	0
Net settlement of sale of real estate, subject to debt - real estate	(11,943)	0
Net settlement of sale of real estate, subject to debt - debt obligations	11,943	0
Reduction in proceeds from sales of real estate	0	62,417
Assumption of debt obligations by real estate buyer/defeasance of debt and related costs	0	(62,417)
Exchange of noncontrolling interest for common stock	16,110	62,433
Change in deferred tax asset related to exchanges of noncontrolling interest for common stock	0	428
Increase in amount payable pursuant to tax receivable agreement	(11)	(86)
Rebalancing of ownership percentage between Company and Operating Partnership	147	869
Dividends declared, not paid	2,384	1,964
Stock dividends	23,824	0
Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows	98,450	182,683
Consolidated Joint Venture
Cash flows from financing activities:
Capital distributed to noncontrolling interests	(1,013)	(24,400)
Capital contributed by noncontrolling interests in consolidated joint ventures	498	5,779
Operating Partnership
Cash flows from financing activities:
Capital distributed to noncontrolling interests	$ (12,821)	$ (13,191)

ORGANIZATION AND OPERATIONS	9 Months Ended
ORGANIZATION AND OPERATIONS	Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND OPERATIONS	1. ORGANIZATION AND OPERATIONS Ladder Capital Corp is an internally-managed real estate investment trust (“REIT”) that is a leader in commercial real estate finance. Ladder originates and invests in a diverse portfolio of commercial real estate and real estate-related assets, focusing on senior secured assets. Ladder’s investment activities include: (i) direct origination of commercial real estate first mortgage loans; (ii) investments in investment grade securities secured by first mortgage loans on commercial real estate; and (iii) investments in net leased and other commercial real estate equity. Ladder Capital Corp, as the general partner of Ladder Capital Finance Holdings LLLP (“LCFH,” “Predecessor” or the “Operating Partnership”), operates the Ladder Capital business through LCFH and its subsidiaries. As of September 30, 2019, Ladder Capital Corp has a 89.8% economic interest in LCFH and controls the management of LCFH as a result of its ability to appoint its board members. Accordingly, Ladder Capital Corp consolidates the financial results of LCFH and its subsidiaries and records a noncontrolling interest for the economic interest in LCFH held by certain existing owners of LCFH, who were limited partners of LCFH prior Ladder Capital Corp’s initial public offering (“IPO”) and continue to hold an economic interest in LCFH and voting shares of Ladder Capital Corp Class B common stock (the “Continuing LCFH Limited Partners”). In addition, Ladder Capital Corp, through certain subsidiaries which are treated as taxable REIT subsidiaries (each a “TRS”), is indirectly subject to U.S. federal, state and local income taxes. Other than the noncontrolling interest in the Operating Partnership and such indirect U.S. federal, state and local income taxes, there are no material differences between Ladder Capital Corp’s consolidated financial statements and LCFH’s consolidated financial statements. Ladder Capital Corp was formed as a Delaware corporation on May 21, 2013. The Company conducted its IPO which closed on February 11, 2014. The Company used the net proceeds from the IPO to purchase newly issued limited partnership units (“LP Units”) from LCFH. In connection with the IPO, Ladder Capital Corp also became a holding corporation and the general partner of, and obtained a controlling interest in, LCFH. Ladder Capital Corp’s only business is to act as the general partner of LCFH, and, as such, Ladder Capital Corp indirectly operates and controls all of the business and affairs of LCFH and its subsidiaries. The IPO transactions described herein are referred to as the “IPO Transactions.” Pursuant to LCFH’s Third Amended and Restated LLLP Agreement, dated as of December 31, 2014 and as amended from time to time, and subject to the applicable minimum retained ownership requirements and certain other restrictions, including notice requirements, from time to time, Continuing LCFH Limited Partners (or certain transferees thereof) may from time to time, subject to certain conditions, receive one share of the Company’s Class A common stock in exchange for (i) one share of the Company’s Class B common stock, (ii) one Series REIT LP Unit and (iii) either one Series TRS LP Unit or one TRS Share, subject to equitable adjustments for stock splits, stock dividends and reclassifications. However, such exchange for shares of Ladder Capital Corp Class A common stock will not affect the exchanging owners’ voting power since the votes represented by the canceled shares of Ladder Capital Corp Class B common stock will be replaced with the votes represented by the shares of Class A common stock for which such Series Units, including TRS Shares as applicable, will be exchanged. As a result of the Company’s ownership interest in LCFH and LCFH’s election under Section 754 of the Code, the Company expects to benefit from depreciation and other tax deductions reflecting LCFH’s tax basis for its assets. Those deductions will be allocated to the Company and will be taken into account in reporting the Company’s taxable income.

SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

SIGNIFICANT ACCOUNTING POLICIES

2. SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting and Principles of Consolidation

The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). In the opinion of management, the unaudited financial information for the interim periods presented in this report reflects all normal and recurring adjustments necessary for a fair statement of results of operations, financial position and cash flows. The interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2018, which are included in the Company’s Annual Report, as certain disclosures that would substantially duplicate those contained in the audited consolidated financial statements have not been included in this interim report. Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year. The interim consolidated

financial statements have been prepared, without audit, and do not necessarily include all information and footnotes necessary for a fair statement of our consolidated financial position, results of operations and cash flows in accordance with GAAP.

The consolidated financial statements include the Company’s accounts and those of its subsidiaries which are majority-owned and/or controlled by the Company and variable interest entities for which the Company has determined itself to be the primary beneficiary, if any. All significant intercompany transactions and balances have been eliminated.

Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810 — Consolidation (“ASC 810”), provides guidance on the identification of entities for which control is achieved through means other than voting rights (“variable interest entities” or “VIEs”) and the determination of which business enterprise, if any, should consolidate the VIEs. Generally, the consideration of whether an entity is a VIE applies when either: (1) the equity investors (if any) lack one or more of the essential characteristics of a controlling financial interest; (2) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support; or (3) the equity investors have voting rights that are not proportionate to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. The Company consolidates VIEs in which it is considered to be the primary beneficiary. The primary beneficiary is the entity that has both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the VIE’s performance; and (2) the obligation to absorb losses and right to receive the returns from the VIE that would be significant to the VIE. See Note 10 for further information on the Company’s consolidated variable interest entities.

Noncontrolling interests in consolidated subsidiaries are defined as “the portion of the equity (net assets) in the subsidiaries not attributable, directly or indirectly, to a parent.” Noncontrolling interests are presented as a separate component of equity in the consolidated balance sheets. In addition, the presentation of net income attributes earnings to shareholders/unitholders (controlling interest) and noncontrolling interests.

Use of Estimates

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the balance sheets and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates and assumptions are reviewed periodically, and the effects of resulting changes are reflected in the consolidated financial statements in the period the changes are deemed to be necessary. Significant estimates made in the accompanying consolidated financial statements include, but are not limited to the following:


•	valuation of real estate securities;


•	valuation of mortgage loan receivables held for sale;


•	allocation of purchase price for acquired real estate;


•	impairment, and useful lives, of real estate;


•	useful lives of intangible assets;


•	valuation of derivative instruments;


•	valuation of deferred tax asset (liability);


•	amounts payable pursuant to the Tax Receivable Agreement;


•	determination of effective yield for recognition of interest income;


•	adequacy of provision for loan losses including the valuation of underlying collateral for collateral dependent loans;


•	determination of other than temporary impairment of real estate securities and investments in and advances to unconsolidated joint ventures;


•	certain estimates and assumptions used in the accrual of incentive compensation and calculation of the fair value of equity compensation issued to employees;


•	determination of the effective tax rate for income tax provision; and


•	certain estimates and assumptions used in the allocation of revenue and expenses for our segment reporting.

Cash and Cash Equivalents

The Company considers all investments with original maturities of three months or less, at the time of acquisition, to be cash equivalents. The Company maintains cash accounts at several financial institutions, which are insured up to a maximum of $250,000 per account as of September 30, 2019 and December 31, 2018. At September 30, 2019 and December 31, 2018, and at various times during the years, the balances exceeded the insured limits.

Restricted Cash

Restricted cash is comprised of accounts the Company maintains with brokers to facilitate financial derivative and repurchase agreement transactions in support of its loan and securities investments and risk management activities. Based on the value of the positions in these accounts and the associated margin requirements, the Company may be required to deposit additional cash into these broker accounts. The cash collateral held by broker is considered restricted cash. Restricted cash also includes tenant security deposits, deposits related to real estate sales and acquisitions and required escrow balances on credit facilities. Prior to January 1, 2017, these amounts were previously recorded in other assets on the Company’s consolidated balance sheets.

Recognition of Operating Lease Income and Tenant Recoveries

The Company adopted ASC Topic 842 on January 1, 2019. The primary impact of applying ASC Topic 842 was the initial recognition of a $3.5 million lease liability and a $3.3 million right-of-use asset (including previously accrued straight line rent) on the Company’s consolidated financial statements, for leases classified as operating leases under ASC Topic 840, primarily for the Company’s corporate headquarters and other identified leases. There is no cumulative effect on retained earnings or other components of equity recognized as of January 1, 2019.

Certain arrangements may contain both lease and non-lease components. The Company determines if an arrangement is, or contains, a lease at contract inception. Only the lease components of these contractual arrangements are subject to the provisions of ASC Topic 842. Any non-lease components are subject to other applicable accounting guidance. We have elected, however, to adopt the optional practical expedient not to separate lease components from non-lease components for accounting purposes. This policy election has been adopted for each of the Company’s leased asset classes existing as of the effective date and subject to the transition provisions of ASC Topic 842, will be applied to all new or modified leases executed on or after January 1, 2019. For contractual arrangements executed in subsequent periods involving a new leased asset class, the Company will determine at contract inception whether it will apply the optional practical expedient to the new leased asset class.

Leases are evaluated for classification as operating or finance leases at the commencement date of the lease. Right-of-use assets and corresponding liabilities are recognized on the Company’s consolidated balance sheet based on the present value of future lease payments relating to the use of the underlying asset during the lease term. Future lease payments include fixed lease payments as well as variable lease payments that depend upon an index or rate using the index or rate at the commencement date and probable amounts owed under residual value guarantees. The amount of future lease payments may be increased to include additional payments related to lease extension, termination, and/or purchase options when the Company has determined, at or subsequent to lease commencement, generally due to limited asset availability or operating commitments, it is reasonably certain of exercising such options.

The Company uses its incremental borrowing rate as the discount rate in determining the present value of future lease payments, unless the interest rate implicit in the lease arrangement is readily determinable. Lease payments that vary based on future usage levels, the nature of leased asset activities, or certain other contingencies, are not included in the measurement of lease right-of-use assets and corresponding liabilities. The Company has elected not to record assets and liabilities on its consolidated balance sheet for lease arrangements with terms of 12 months or less. Tenant recoveries related to reimbursement of real estate taxes, insurance, utilities, repairs and maintenance, and other operating expenses are recognized as revenue in the period during which the applicable expenses are incurred.

Out-of-Period Adjustments

During the first quarter of 2018, the Company recorded an out-of-period adjustment to increase tenant real estate tax recoveries on a net lease property by $1.1 million, which was not billed until the three month period ended March 31, 2018, but related to prior periods. The Company has concluded that this adjustment was not material to the financial position or results of operations for the three months ended March 31, 2018 or any prior periods; accordingly, the Company recorded the related adjustment in the three month period ended March 31, 2018.

Recently Adopted Accounting Pronouncements

In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) (“ASU 2016-02”), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either operating leases or financing leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sale-type leases, direct financing leases and operating leases. ASU 2016-02 supersedes the previous lease standard, Leases (Topic 840). In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842 (Leases) (“ASU 2018-10”), which provides narrow amendments to clarify how to apply certain aspects of the new leasing standard. In July 2018, the FASB also issued ASU 2018-11, Leases (Topic 842): Targeted Improvements (“ASU 2018-11”), which provides a new transition method at the adoption date through a cumulative-effect adjustment to the opening balance of retained earnings, prior periods will not require restatement. ASU 2018-11 also provides a new practical expedient for lessors adopting the new lease standard. Lessors have the option to aggregate nonlease components with the related lease component upon adoption of the new standard if the following conditions are met: (1) the timing and pattern of transfer for the nonlease component and the related lease component are the same and (2) the stand-alone lease component would be classified as an operating lease if accounted for separately. In December 2018, the FASB issued ASU 2018-20, Leases (Topic 842) (“ASU 2018-20”), which provides narrow amendments to clarify how to apply certain aspects of the new leasing standard. Each of the standards are effective for the Company on January 1, 2019, with early adoption permitted. In March 2019, the FASB issued ASU 2019-01, Leases (Topic 842): Codification Improvements (“ASU 2019-01”), which aligns the guidance for fair value of the underlying asset by lessors that are not manufacturers or dealers in Topic 842 with that of existing guidance. As a result, the fair value of the underlying asset at lease commencement is its cost, reflecting any volume or trade discounts that may apply. However, if there has been a significant lapse of time between when the underlying asset is acquired and when the lease commences, the definition of fair value in Topic 820, Fair Value Measurement should be applied. ASU 2019-01 also requires lessors within the scope of Topic 942, Financial Services—Depository and Lending, to present all “principal payments received under leases” within investing activities.

The Company adopted ASU 2016-02, ASU 2018-10, ASU 2018-11, ASU 2018-20 and ASU 2019-01, collectively FASB ASC Topic 842, Leases (“ASC Topic 842”), beginning January 1, 2019. The Company adopted ASU Topic 842 using the modified retrospective approach and elected to utilize the Optional Transition Method, which permits the Company to apply the provisions of ASC Topic 842 to leasing arrangements existing at or entered into after January 1, 2019, and present in its financial statements comparative periods prior to January 1, 2019 under the historical requirements of ASC Topic 840. In addition, the Company elected to adopt the package of optional transition-related practical expedients, which among other things, allows the Company to carry forward certain historical conclusions reached under ASC Topic 840 regarding lease identification, classification, and the accounting treatment of initial direct costs. Furthermore, the Company elected not to record assets and liabilities on its consolidated balance sheets for new or existing lease arrangements with terms of 12 months or less.

In March 2017, the FASB issued ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20), (“ASU 2017-08”). The ASU shortens the amortization period for the premium on certain purchased callable debt securities to the earliest call date. Historically, entities generally amortized the premium over the contractual life of the security. The new guidance does not change the accounting for purchased callable debt securities held at a discount; the discount continues to be amortized to maturity. ASU No. 2017-08 is effective for interim and annual reporting periods beginning after December 15, 2018; early adoption is permitted. The guidance calls for a modified retrospective transition approach under which a cumulative-effect adjustment will be made to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The adoption of ASU 2017-08 on January 1, 2019 had no material impact on the Company’s consolidated financial statements.

In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480) and Derivatives and Hedging (Topic 815): I. Accounting for Certain Financial Instruments with Down Round Features; II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception, (“ASU 2017-11”). Part I of this update addresses the complexity of accounting for certain financial instruments with down round features. Down round features are features of certain equity-linked instruments (or embedded features) that result in the strike price being reduced on the basis of the pricing of future equity offerings. Current accounting guidance creates cost and complexity for entities that issue financial instruments (such as warrants and convertible instruments) with down round features that require fair value measurement of the entire instrument or conversion option. Part II of this update addresses the difficulty of navigating Topic 480, Distinguishing Liabilities from Equity, because of the existence of extensive pending content in the FASB Accounting Standards Codification. This pending content is the result of the indefinite deferral of accounting requirements about mandatorily redeemable financial instruments of certain nonpublic entities and certain mandatorily redeemable noncontrolling interests. The amendments in Part II of this update do not have an accounting effect. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. The adoption of ASU 2017-11 on January 1, 2019 had no material impact on the Company’s consolidated financial statements.

In January 2018, the FASB issued ASU 2018-01, Land Easement Practical Expedient for Transition to Topic 842, (“ASU 2018-01”). This ASU provides an optional transition practical expedient that, if elected, would not require companies to reconsider their accounting for existing or expired land easements before adoption of Topic 842 and that were not previously accounted for as leases under Topic 840. This ASU will be effective January 1, 2019 and early adoption is permitted. The adoption of ASU 2018-01 on January 1, 2019, had no material impact on the Company’s consolidated financial statements.

In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220), (“ASU 2018-02”). This ASU allows an entity to elect to reclassify the stranded tax effects related to the Tax Cuts and Jobs Act of 2017 from accumulated other comprehensive income into retained earnings. This ASU will be effective January 1, 2019, and early adoption is permitted. The adoption of ASU 2018-02 on January 1, 2019 had no material impact on the Company’s consolidated financial statements.

In July 2018, the FASB issued ASU 2018-09, Codification Improvements, (“ASU 2018-09”). This standard does not prescribe any new accounting guidance, but instead makes minor improvements and clarifications of several different FASB Accounting Standards Codification areas based on comments and suggestions made by various stakeholders. Certain updates are applicable immediately while others provide for a transition period to adopt as part of the next fiscal year beginning after December 15, 2018. The adoption of ASU 2018-09 had no material impact on the Company’s consolidated financial statements.

Recent Accounting Pronouncements Pending Adoption

In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, (“ASU 2016-13”). The guidance changes the impairment model for most financial assets. The new model uses a forward-looking expected loss method, which will generally result in earlier recognition of allowances for losses. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted for annual and interim periods beginning after December 15, 2018. In November 2018, the FASB issued ASU 2018-19 to clarify that operating lease receivables recorded by lessors are explicitly excluded from the scope of ASU 2016-13. In May 2019, the FASB issued ASU 2019-05 to provide an option to irrevocably elect to measure certain individual financial assets at fair value instead of amortized cost. The Company must apply the amendments in these updates through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company is currently assessing the impact of this standard on the consolidated financial statements. In general, the allowance for credit losses is expected to increase when changing from an incurred loss to expected loss methodology. The models and methodologies that are currently used in estimating the allowance for credit losses are being evaluated to identify the changes necessary to meet the requirements of the new standard.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement, (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, (“ASU 2018-13”). ASU 2018-13 eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of its disclosure framework project. The standard is effective for all entities for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2018-02 to have a material impact on its financial statements and related disclosures.

In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities, (“ASU 2018-17”). ASU 2018-17 requires reporting entities to consider indirect interests held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety for determining whether a decision-making fee is a variable interest. The standard is effective for all entities for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. Entities are required to apply the amendments in ASU 2018-17 retrospectively with a cumulative-effect adjustment to retained earnings at the beginning of the earliest period presented. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements.

In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, (“ASU 2019-04”). ASU 2019-04 clarifies and improves areas of guidance related to the recently issued standards on credit losses (ASU 2016-13), hedging (ASU 2017-12), and recognition and measurement of financial instruments (ASU 2016-01). The amendments generally have the same effective dates as their related standards. If already adopted, the amendments of ASU 2016-01 and ASU 2016-13 are effective for fiscal years beginning after December 15, 2019 and the amendments of ASU 2017-12 are effective as of the beginning of the Company’s next annual reporting period; early adoption is permitted. The Company previously adopted ASU 2016-01 and does not expect the amendments of ASU 2019-04 to have a material impact on its consolidated financial statements.

Any new accounting standards not disclosed above that have been issued or proposed by FASB and that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption.

MORTGAGE LOAN RECEIVABLES

9 Months Ended

Sep. 30, 2019

SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]

MORTGAGE LOAN RECEIVABLES

3. MORTGAGE LOAN RECEIVABLES

September 30, 2019 ($ in thousands)



	Outstanding Face Amount		Carrying Value			Weighted Average Yield (1)		Remaining Maturity (years)

Mortgage loan receivables held for investment, net, at amortized cost:
Mortgage loans held by consolidated subsidiaries:
First mortgage loans(2)	$	3,116,050	$	3,098,241		7.14	%	1.27
Mezzanine loans	133,661		133,202			10.87	%	3.76
Total mortgage loans held by consolidated subsidiaries	3,249,711		3,231,443			7.29	%	1.37
Provision for loan losses	N/A		(18,500		)
Total mortgage loan receivables held for investment, net, at amortized cost	3,249,711		3,212,943
Mortgage loan receivables held for sale:
First mortgage loans	173,957		174,214			4.59	%	9.68
Total	$	3,423,668	$	3,387,157		7.19	%	1.81


(1)	September 30, 2019 London Interbank Offered Rate (“LIBOR”) rates are used to calculate weighted average yield for floating rate loans.


(2)	Includes amounts relating to consolidated variable interest entities. See Note 10.

As of September 30, 2019, $2.5 billion, or 78.4% of the outstanding face amount of our mortgage loan receivables held for investment, net, at amortized cost, were at variable interest rates, linked to LIBOR. Of this $2.5 billion, 100% of these variable interest rate mortgage loan receivables were subject to interest rate floors. As of September 30, 2019, $174.0 million, or 100%, of the outstanding face amount of our mortgage loan receivables held for sale were at fixed interest rates.

December 31, 2018 ($ in thousands)



	Outstanding Face Amount		Carrying Value			Weighted Average Yield (1)		Remaining Maturity (years)

Mortgage loan receivables held for investment, net, at amortized cost:
Mortgage loans held by consolidated subsidiaries:
First mortgage loans(2)	$	3,192,160	$	3,170,788		7.70	%	1.18
Mezzanine loans	148,221		147,602			10.89	%	4.35
Total mortgage loans held by consolidated subsidiaries	3,340,381		3,318,390			7.84	%	1.32
Provision for loan losses	N/A		(17,900		)
Total mortgage loan receivables held for investment, net, at amortized cost	3,340,381		3,300,490
Mortgage loan receivables held for sale:
First mortgage loans	181,905		182,439			5.46	%	9.75
Total	$	3,522,286	$	3,482,929		7.76	%	1.77


(1)	December 31, 2018 LIBOR rates are used to calculate weighted average yield for floating rate loans.


(2)	Includes amounts relating to consolidated variable interest entities. See Note 10.

As of December 31, 2018, $2.5 billion, or 75.4%, of the outstanding principal of our mortgage loan receivables held for investment, net, at amortized cost, were at variable interest rates, linked to LIBOR. Of this $2.5 billion, 100% of these variable rate mortgage loan receivables were subject to interest rate floors. As of December 31, 2018, $182.4 million, or 100%, of the carrying value of our mortgage loan receivables held for sale were at fixed interest rates.

For the nine months ended September 30, 2019 and 2018, the activity in our loan portfolio was as follows ($ in thousands):



	Mortgage loan receivables held for investment, net, at amortized cost:
	Mortgage loans held by consolidated subsidiaries			Mortgage loans transferred but not considered sold			Provision for loan losses			Mortgage loan receivables held for sale

Balance, December 31, 2018	$	3,318,390		$	—		$	(17,900	)	$	182,439
Origination of mortgage loan receivables	985,825			—			—			554,115
Purchases of mortgage loan receivables	—			—			—			9,934
Repayment of mortgage loan receivables	(1,105,506		)	—			—			(620		)
Proceeds from sales of mortgage loan receivables(1)	—			(15,504		)	—			(558,799		)
Non-cash disposition of loans via foreclosure(2)	(17,611		)	—			—			—
Sale of loans, net	—			—			—			38,589
Transfer between held for investment and held for sale(1)	35,940			15,504			—			(51,444		)
Accretion/amortization of discount, premium and other fees	14,405			—			—			—
Provision for loan losses	—			—			(600		)	—
Balance, September 30, 2019	$	3,231,443		$	—		$	(18,500	)	$	174,214

(1)

During the three months ended March 31, 2019, the Company reclassified from mortgage loan receivables held for sale to mortgage loan receivables held for investment, net, at amortized cost, one loan with an outstanding face amount of $15.4 million, a book value of $15.5 million (fair value at the date of reclassification) and a remaining maturity of 9.8 years, which was sold to the WFCM 2019-C49 securitization trust. Subsequently, the controlling loan interest was sold to the UBS 2019-C16 securitization trust, and as a result, the loan previously sold during the three months ended March 31, 2019 was accounted for as a sale during the six months ended June 30, 2019.


(2)	Refer to Note 5 Real Estate and Related Lease Intangibles, Net for further detail on foreclosure of real estate.



	Mortgage loan receivables held for investment, net, at amortized cost:
	Mortgage loans held by consolidated subsidiaries			Provision for loan losses			Mortgage loan receivables held for sale

Balance, December 31, 2017	$	3,282,462		$	(4,000	)	$	230,180
Origination of mortgage loan receivables	1,240,894			—			1,115,218
Repayment of mortgage loan receivables	(787,167		)	—			(1,324		)
Proceeds from sales of mortgage loan receivables	—			—			(926,402		)
Sale of loans, net(1)	—			—			12,893
Transfer between held for investment and held for sale(2)	55,403			—			(55,403		)
Accretion/amortization of discount, premium and other fees	13,795			—			—
Provision for loan losses(3)	—			(13,600		)	—
Balance, September 30, 2018	$	3,805,387		$	(17,600	)	$	375,162


(1)	Includes $0.5 million of realized losses on loans related to lower of cost or market adjustments for the nine months ended September 30, 2018.

(2)

During the nine months ended September 30, 2018, the Company reclassified from mortgage loan receivables held for sale to mortgage loan receivables held for investment, net, at amortized cost, three loans with a combined outstanding face amount of $57.6 million, a combined book value of $55.4 million (fair value at date of reclassification) and a remaining maturity of 2.5 years. The loans had been recorded at lower of cost or market prior to their reclassification. The discount to fair value is the result of an increase in market interest rates since the loans’ origination and not a deterioration in credit of the borrowers or collateral coverage and the Company expects to collect all amounts due under the loans.

(3)

As further discussed below, during the three and nine months ended September 30, 2018, the Company recorded asset-specific provisions on collateral dependent loans of $10.0 million and $12.7 million, respectively. In addition. the Company records a portfolio-based, general loan loss provision to provide reserves for expected losses over the remaining portfolio of mortgage loan receivables held for investment. During the three and nine months ended September 30, 2018, the Company recorded an additional general reserve of $0.3 million and $0.9 million, respectively.

During the nine months ended September 30, 2019 and September 30, 2018, the transfers of financial assets via sales of loans were treated as sales under ASC Topic 860 — Transfers and Servicing.

As of September 30, 2019 and December 31, 2018, there was $0.1 million and $0.5 million, respectively, of unamortized discounts included in our mortgage loan receivables held for investment, net, at amortized cost, on our consolidated balance sheets.

Provision for Loan Losses and Non-Accrual Status ($ in thousands)



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018

Allowance for loan losses at beginning of period	$	18,500	$	7,300	$	17,900	$	4,000
Provision for loan losses	—		10,300		600		13,600
Allowance for loan losses at end of period	$	18,500	$	17,600	$	18,500	$	17,600

					September 30, 2019		December 31, 2018

Principal balance of loans on non-accrual status(1)					$	37,161	$	36,850


(1)	Represents two of the Company’s loans, which were originated simultaneously as part of a single transaction and had a carrying value of $26.9 million and one loan with a carrying value of $45.0 million, as further discussed below.

The Company evaluates each of its loans for potential losses at least quarterly. Its loans are typically collateralized by real estate directly or indirectly. As a result, the Company regularly evaluates the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral property, as well as the financial and operating capability of the borrower. Specifically, a property’s operating results and any cash reserves are analyzed and used to assess (i) whether cash flow from operations is sufficient to cover the debt service requirements currently and into the future, (ii) the ability of the borrower to refinance the loan at maturity, and/or (iii) the property’s liquidation value. The Company also evaluates the financial wherewithal of any loan guarantors as well as the borrower’s competency in managing and operating the properties. In addition, the Company considers the overall economic environment, real estate sector, and geographic sub-market in which the collateral property is located. Such impairment analyses are completed and reviewed by asset management personnel, who utilize various data sources, including (i) periodic financial data such as property occupancy, tenant profile, rental rates, operating expenses, the borrowers’ business plan, and capitalization and discount rates, (ii) site inspections, and (iii) current credit spreads and other market data.

As a result of this analysis, the Company has concluded that none of its loans, other than the three loans discussed below, are individually impaired as of September 30, 2019 and December 31, 2018. It is probable, however, that Ladder’s loan portfolio as a whole incurred an impairment due to common characteristics and shared inherent risks in the portfolio. The Company determined that a provision expense for loan losses of $0.6 million was required for the nine months ended September 30, 2019. This provision consisted of a portfolio-based, general loan loss provision of $0.6 million to provide reserves for expected losses over the remaining portfolio of mortgage loan receivables held for investment, and no additional asset-specific reserves.

As of September 30, 2019, two of the Company’s loans, which were originated simultaneously as part of a single transaction and had a carrying value of $26.9 million, were in default. These loans are directly and indirectly secured by the same property and are considered collateral dependent because repayment is expected to be provided solely by the underlying collateral. The Company placed these loans on non-accrual status in July 2017. In assessing these collateral dependent loans for impairment, the most significant consideration is the fair value of the underlying real estate collateral, which includes an in-place long-dated retail lease. The value of such property is most significantly affected by the contractual lease terms and the appropriate market capitalization rates, which are driven by the property’s market strength, the general interest rate environment and the retail tenant’s creditworthiness. In view of these considerations, the Company uses a direct capitalization rate valuation methodology to calculate the fair value of the underlying real estate collateral. These non-recurring fair values are considered Level 3 measurements in the fair value hierarchy. During the three months ended March 31, 2018, management believed these loans to be potentially impaired, reflecting a decline in collateral value attributable to: (i) on-going bankruptcy proceedings; (ii) rising interest rates; and (iii) the retail tenant’s creditworthiness. As a result, on March 31, 2018, the Company recorded a provision for loss on these loans of $2.7 million to reduce the carrying value of these loans to the fair value of the property less the cost to foreclose and sell the property utilizing direct capitalization rates of 4.70% to 5.00%. As of September 30, 2019, the Company believed no additional loss provision was necessary based on the application of direct capitalization rates of 4.60% to 4.90%.

During the year ended December 31, 2018, management identified a loan with a carrying value of $45.0 million as potentially impaired, reflecting a decline in collateral value attributable to: (i) recent and near term tenant vacancies at the property; (ii) new information available during the three months ended September 30, 2018 regarding the addition of supply that will increase the local submarket vacancy rate; and (iii) declining market conditions. As part of the Company’s evaluation, it obtained an external appraisal of the loan collateral. Based on this review, a reserve of $10.0 million was recorded for this potentially impaired loan in the three months ended September 30, 2018 to reduce the carrying value of the loan to the estimated fair value of the collateral, less the estimated costs to sell. The Company has placed this loan on non-accrual status as of September 30, 2018. During the quarter ended December 31, 2018, this loan experienced a maturity default and its terms were modified in a Troubled Debt Restructuring (“TDR”) on October 17, 2018. The terms of the TDR provided for, among other things, the restructuring of the Company’s existing $45.0 million first mortgage loan into a $35.0 million A-Note and a $10.0 million B-Note and a 19.0% equity interest which is not subject to dilution and that can be increased to 25% under certain conditions. Under certain conditions, the B-Note may be forgiven or reduced. The restructured loan was extended for up to 12 months, including extensions. There have been no additional changes during the nine months ended September 30, 2019. On October 4, 2019, the loan was extended for an additional one month period with a November 6, 2019 maturity. On November 6, 2019 the loan was extended for an additional three month period with a February 6, 2020 maturity.

Generally when granting concessions, the Company will seek to protect its position by requiring incremental pay downs, additional collateral or guarantees and in some cases lookback features or equity kickers to offset concessions granted should conditions impacting the loan improve. The Company's determination of credit losses is impacted by TDRs whereby loans that have gone through TDRs are considered impaired, assessed for specific reserves, and are not included in the Company's assessment of general loan loss reserves. Loans previously restructured under TDRs that subsequently default are reassessed to incorporate the Company's current assumptions on expected cash flows and additional provision expense is recorded to the extent necessary. As of September 30, 2019, there were no unfunded commitments associated with modified loans considered TDRs.

As of September 30, 2019 and December 31, 2018 there were no other loans on non-accrual status.

REAL ESTATE SECURITIES

9 Months Ended

Sep. 30, 2019

Investments, Debt and Equity Securities [Abstract]

REAL ESTATE SECURITIES

4. REAL ESTATE SECURITIES

Commercial mortgage backed securities (“CMBS”), CMBS interest-only securities, Agency securities, Government National Mortgage Association (“GNMA”) construction securities, GNMA permanent securities and corporate bonds are classified as available-for-sale and reported at fair value with changes in fair value recorded in the current period in other comprehensive income. GNMA and Federal Home Loan Mortgage Corp (“FHLMC”) securities (collectively, “Agency interest-only securities”) are recorded at fair value with changes in fair value recorded in current period earnings. Equity securities are classified as available-for-sale and reported at fair value with changes in fair value recorded in current period earnings. The following is a summary of the Company’s securities at September 30, 2019 and December 31, 2018 ($ in thousands):

September 30, 2019



					Gross Unrealized									Weighted Average
Asset Type	Outstanding Face Amount		Amortized Cost Basis/Purchase Price		Gains		Losses			Carrying Value			# of Securities	Rating (1)	Coupon %		Yield %		Remaining Duration (years)

CMBS(2)	$	1,779,458	$	1,780,233	$	9,012	$	(533	)	$	1,788,712	(3)	139	AAA	3.27	%	3.14	%	2.38
CMBS interest-only(2)(4)	2,139,357		39,961		1,491		(12		)	41,440		(5)	18	AAA	0.49	%	3.65	%	2.61
GNMA interest-only(4)(6)	113,096		2,202		119		(295		)	2,026			12	AA+	0.51	%	9.65	%	2.73
Agency securities(2)	641		652		2		—			654			2	AA+	2.67	%	1.74	%	1.97
GNMA permanent securities(2)	31,760		31,984		811		—			32,795			6	AA+	3.92	%	3.27	%	4.55
Corporate bonds(2)	32,088		31,604		768		—			32,372			1	BB-	3.63	%	4.81	%	1.31
Total debt securities	$	4,096,400	$	1,886,636	$	12,203	$	(840	)	$	1,897,999		178		1.75	%	3.17	%	2.39
Equity securities(7)	N/A		13,720		125		(388		)	13,457			3	N/A	N/A		N/A		N/A
Total real estate securities	$	4,096,400	$	1,900,356	$	12,328	$	(1,228	)	$	1,911,456		181

(1)

Represents the weighted average of the ratings of all securities in each asset type, expressed as an S&P equivalent rating. For each security rated by multiple rating agencies, the highest rating is used. Ratings provided were determined by third-party rating agencies as of a particular date, may not be current and are subject to change (including the assignment of a “negative outlook” or “credit watch”) at any time.


(2)	CMBS, CMBS interest-only securities, Agency securities, GNMA permanent securities and corporate bonds are classified as available-for-sale and reported at fair value with changes in fair value recorded in the current period in other comprehensive income.


(3)	Includes $11.6 million of restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust and are classified as held-to-maturity and reported at amortized cost.


(4)	The amounts presented represent the principal amount of the mortgage loans outstanding in the pool in which the interest-only securities participate.


(5)	Includes $0.8 million of restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust and are classified as held-to-maturity and reported at amortized cost.

(6)

Agency interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings. The Company’s Agency interest-only securities are considered to be hybrid financial instruments that contain embedded derivatives. As a result, the Company has elected to account for them as hybrid instruments in their entirety at fair value with changes in fair value recognized in unrealized gain (loss) on Agency interest-only securities in the consolidated statements of income in accordance with ASC 815.


(7)	The Company has elected to account for equity securities at fair value with changes in fair value recorded in current period earnings.

December 31, 2018



					Gross Unrealized									Weighted Average
Asset Type	Outstanding Face Amount		Amortized Cost Basis		Gains		Losses			Carrying Value			# of Securities	Rating (1)	Coupon %		Yield %		Remaining Duration (years)

CMBS(2)	$	1,258,819	$	1,257,801	$	2,477	$	(7,638	)	$	1,252,640	(3)	138	AAA	3.32	%	3.14	%	2.33
CMBS interest-only(2)(4)	2,373,936		55,534		428		(271		)	55,691		(5)	19	AAA	0.57	%	2.80	%	2.69
GNMA interest-only(4)(6)	135,932		2,862		93		(307		)	2,648			12	AA+	0.51	%	6.30	%	4.11
Agency securities(2)	668		682		—		(20		)	662			2	AA+	2.73	%	1.83	%	2.36
GNMA permanent securities(2)	32,633		32,889		420		(245		)	33,064			6	AA+	3.94	%	3.76	%	5.03
Corporate bonds(2)	55,305		54,257		—		(386		)	53,871			2	BB	4.08	%	5.04	%	2.51
Total debt securities	$	3,857,293	$	1,404,025	$	3,418	$	(8,867	)	$	1,398,576		179		1.54	%	3.19	%	2.40
Equity securities(7)	N/A		13,154		—		(1,604		)	11,550			3	N/A	N/A		N/A		N/A
Total real estate securities	$	3,857,293	$	1,417,179	$	3,418	$	(10,471	)	$	1,410,126		182

(1)

Represents the weighted average of the ratings of all securities in each asset type, expressed as an S&P equivalent rating. For each security rated by multiple rating agencies, the highest rating is used. Ratings provided were determined by third-party rating agencies as of a particular date, may not be current and are subject to change (including the assignment of a “negative outlook” or “credit watch”) at any time.


(2)	CMBS, CMBS interest-only securities, Agency securities, GNMA permanent securities and corporate bonds are classified as available-for-sale and reported at fair value with changes in fair value recorded in the current period in other comprehensive income.


(3)	Includes $11.3 million of restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust and are classified as held-to-maturity and reported at amortized cost.


(4)	The amounts presented represent the principal amount of the mortgage loans outstanding in the pool in which the interest-only securities participate.


(5)	Includes $0.9 million of restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust and are classified as held-to-maturity and reported at amortized cost.

(6)

Agency interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings. The Company’s Agency interest-only securities are considered to be hybrid financial instruments that contain embedded derivatives. As a result, the Company accounts for them as hybrid instruments in their entirety at fair value with changes in fair value recognized in unrealized gain (loss) on Agency interest-only securities in the consolidated statements of income in accordance with ASC 815.


(7)	The Company has elected to account for equity securities at fair value with changes in fair value recorded in current period earnings.

The following is a breakdown of the carrying value of the Company’s debt securities by remaining maturity based upon expected cash flows at September 30, 2019 and December 31, 2018 ($ in thousands):

September 30, 2019



Asset Type	Within 1 year		1-5 years		5-10 years		After 10 years		Total

CMBS(1)	$	395,377	$	1,212,074	$	181,261	$	—	$	1,788,712
CMBS interest-only(1)	645		40,795		—		—		41,440
GNMA interest-only(2)	250		1,515		261		—		2,026
Agency securities(1)	—		654		—		—		654
GNMA permanent securities(1)	344		32,451		—		—		32,795
Corporate bonds(1)	—		32,372		—		—		32,372
Total debt securities	$	396,616	$	1,319,861	$	181,522	$	—	$	1,897,999


(1)	CMBS, CMBS interest-only securities, Agency securities, GNMA permanent securities and corporate bonds are classified as available-for-sale and reported at fair value with changes in fair value recorded in the current period in other comprehensive income.


(2)	Agency interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings.

December 31, 2018



Asset Type	Within 1 year		1-5 years		5-10 years		After 10 years		Total

CMBS(1)	$	342,121	$	772,594	$	137,925	$	—	$	1,252,640
CMBS interest-only(1)	1,145		54,546		—		—		55,691
GNMA interest-only(2)	17		2,276		353		2		2,648
Agency securities(1)	—		662		—		—		662
GNMA permanent securities(1)	551		1,048		31,465		—		33,064
Corporate bonds(1)	—		53,871		—		—		53,871
Total debt securities	$	343,834	$	884,997	$	169,743	$	2	$	1,398,576


(1)	CMBS, CMBS interest-only securities, Agency securities, GNMA permanent securities and corporate bonds are classified as available-for-sale and reported at fair value with changes in fair value recorded in the current period in other comprehensive income.


(2)	Agency interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings.

During the three and nine months ended September 30, 2019, the Company realized a gain (loss) on sale of equity securities of none and $0.1 million, respectively, which is included in realized gain (loss) on securities on the Company’s consolidated statements of income. During the three and nine months ended September 30, 2018, the Company realized a gain (loss) on sale of equity securities of none and $0.1 million, which is included in realized gain (loss) on securities on the Company’s consolidated statements of income.

There were $0.1 million realized losses on securities recorded as other than temporary impairments for the three and nine months ended September 30, 2019. During the three and nine months ended September 30, 2018 there were $0.6 million and $2.2 million, respectively, of realized losses on securities recorded as other than temporary impairments, which is included in realized gain (loss) on securities on the Company’s consolidated statements of income.

REAL ESTATE AND RELATED LEASE INTANGIBLES, NET

9 Months Ended

Sep. 30, 2019

Real Estate [Abstract]

REAL ESTATE AND RELATED LEASE INTANGIBLES, NET

5. REAL ESTATE AND RELATED LEASE INTANGIBLES, NET

The following tables present additional detail related to our real estate portfolio, net, including foreclosed properties ($ in thousands):



	September 30, 2019			December 31, 2018

Land	$	197,682		$	195,644
Building	820,783			814,314
In-place leases and other intangibles	159,721			162,002
Less: Accumulated depreciation and amortization	(196,853		)	(173,938		)
Real estate and related lease intangibles, net	$	981,333		$	998,022

Below market lease intangibles, net (other liabilities)	$	(39,087	)	$	(40,367	)

At September 30, 2019 and December 31, 2018, the Company held foreclosed properties included in real estate, net with a carrying value of $23.9 million and $6.3 million, respectively.

The following table presents depreciation and amortization expense on real estate recorded by the Company ($ in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018

Depreciation expense(1)	$	7,394	$	8,063	$	22,776	$	24,058
Amortization expense	1,612		2,336		6,342		7,782
Total real estate depreciation and amortization expense	$	9,006	$	10,399	$	29,118	$	31,840


(1)	Depreciation expense on the consolidated statements of income also includes $24 thousand and $18 thousand of depreciation on corporate fixed assets for the three months ended September 30, 2019 and 2018, respectively, and $74 thousand and $56 thousand of depreciation on corporate fixed assets for the nine months ended September 30, 2019 and 2018, respectively.

The Company’s intangible assets are comprised of in-place leases, favorable leases compared to market leases and other intangibles. The following tables present additional detail related to our intangible assets ($ in thousands):



	September 30, 2019		December 31, 2018

Gross intangible assets(1)	$	159,721	$	162,002
Accumulated amortization	61,056		57,712
Net intangible assets	$	98,665	$	104,290


(1)	Includes $4.6 million and $5.5 million of unamortized favorable lease intangibles which are included in real estate and related lease intangibles, net on the consolidated balance sheets as of September 30, 2019 and December 31, 2018, respectively.



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018

Reduction in operating lease income for amortization of above market lease intangibles acquired	$	(94	)	$	(155	)	$	(727	)	$	(535	)
Increase in operating lease income for amortization of below market lease intangibles acquired	564			500			1,594			1,821

The following table presents expected adjustment to operating lease income and expected amortization expense during the next five years and thereafter related to the above and below market leases and acquired in-place lease and other intangibles for property owned as of September 30, 2019 ($ in thousands):



Period Ending December 31,	Adjustment to Operating Lease Income		Amortization Expense

2019 (last 3 months)	$	263	$	1,601
2020	1,054		6,403
2021	1,054		6,232
2022	1,054		6,232
2023	1,054		6,232
Thereafter	29,981		67,233
Total	$	34,460	$	93,933

Lease Prepayment by Lessor, Retirement of Related Mortgage Loan Financing and Impairment of Real Estate

On January 10, 2019, the Company received $10.0 million prepayment of a lease on a single-tenant two-story office building in Wayne, NJ. As of March 31, 2019, this property had a book value of $5.6 million, which is net of accumulated depreciation and amortization of $2.7 million. The Company recognized the $10.0 million of operating lease income on a straight-line basis over the revised lease term. On February 6, 2019, the Company paid off $6.6 million of mortgage loan financing related to the property, recognizing a loss on extinguishment of debt of $1.1 million. During the three months ended March 31, 2019, the Company recorded a $1.4 million impairment of real estate to reduce the carrying value of the real estate to the estimated fair value of the real estate. On May 1, 2019, the Company completed the sale of the property recognizing $3.9 million of operating lease income, $3.5 million realized loss on sale of real estate, net and $0.4 million of depreciation and amortization expense, resulting in a net loss of $20 thousand. See Note 15, Fair Value of Financial Instruments for further detail.

There were $1.0 million and $0.8 million of rent receivables included in other assets on the consolidated balance sheets as of September 30, 2019 and December 31, 2018, respectively.

There was unencumbered real estate of $90.8 million and $58.6 million as of September 30, 2019 and December 31, 2018, respectively.

During the three and nine months ended September 30, 2019, the Company recorded $1.1 million and $2.1 million of real estate operating income, respectively, which is included in operating lease income in the consolidated statements of income.

The following is a schedule of non-cancellable, contractual, future minimum rent under leases (excluding property operating expenses paid directly by tenant under net leases) at September 30, 2019 ($ in thousands):



Period Ending December 31,	Amount

2019 (last 3 months)	$	21,347
2020	80,401
2021	69,055
2022	65,936
2023	64,106
Thereafter	520,897
Total	$	821,742

Acquisitions

During the nine months ended September 30, 2019, the Company acquired the following properties ($ in thousands):



Acquisition Date	Type	Primary Location(s)	Purchase Price/Fair Value on the Date of Foreclosure		Ownership Interest (1)

Purchases of real estate
February 2019	Net Lease	Houghton Lake, MI	$	1,242	100.0%
February 2019	Net Lease	Trenton, MO	1,164		100.0%
April 2019	Net Lease	Centralia, IL	1,242		100.0%
June 2019	Net Lease	Fayette, MO	1,423		100.0%
July 2019	Net Lease	Dexter, MO	1,150		100.0%
July 2019	Net Lease	Caledonia, MI	1,199		100.0%
August 2019	Net Lease	Poseyville, IN	1,220		100.0%
September 2019	Net Lease	Chillicothe, IL	1,445		100.0%
September 2019	Net Lease	Sullivan, IL	1,496		100.0%
September 2019	Net Lease	Becker, MN	1,185		100.0%
September 2019	Net Lease	Adrian, MO	1,138		100.0%
Total purchases of real estate			13,904

Real estate acquired via foreclosure
February 2019	Diversified	Omaha, NE	18,200		100.0%
Total real estate acquired via foreclosure			18,200

Total real estate acquisitions			$	32,104


(1)	Properties were consolidated as of acquisition date.

During the nine months ended September 30, 2019, the Company acquired title to real estate in a foreclosure. The real estate had a fair value of $18.2 million and previously served as collateral for a mortgage loan receivable held for investment, which was previously on non-accrual status. This loan had an amortized cost of $17.8 million, accrued interest of $0.2 million and an unamortized discount of $0.1 million. The acquisition was accounted for in real estate, net, at fair value on the date of foreclosure. There was no gain or loss resulting from the foreclosure of the loan.

On October 1, 2016, the Company early adopted ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-01”). As a result of this adoption, acquisitions of real estate may not meet the revised definition of a business and may be treated as asset acquisitions rather than business combinations. The measurement of assets and liabilities acquired will no longer be recorded at fair value and the Company will now allocate purchase consideration based on relative fair values. Real estate acquisition costs, which are no longer expensed as incurred, will be capitalized as a component of the cost of the assets acquired. During the nine months ended September 30, 2019, all acquisitions were determined to be asset acquisitions.

The purchase prices were allocated to the asset acquisitions during the nine months ended September 30, 2019, as follows ($ in thousands):



	Purchase Price Allocation

Land	$	4,969
Building	25,571
Intangibles	2,309
Below Market Lease Intangibles	(745		)
Total purchase price	$	32,104

The weighted average amortization period for intangible assets acquired during the nine months ended September 30, 2019 was 38.3 years. The Company recorded $167 thousand and $246 thousand in revenues from its 2019 acquisitions for the three and nine months ended September 30, 2019, respectively, which is included in its consolidated statements of income. The Company recorded $(1.0) million and $(2.5) million in earnings (losses) from its 2019 acquisitions for the three and nine months ended September 30, 2019, respectively, which is included in its consolidated statements of income.

During the nine months ended September 30, 2018, the Company acquired the following properties ($ in thousands):



Acquisition Date	Type	Primary Location(s)	Purchase Price		Ownership Interest (1)

March 2018	Diversified(2)	Lithia Springs, GA	$	24,466	70.6%
April 2018	Net Lease	Kirbyville, MO	1,156		100.0%
April 2018	Net Lease	Gladwin, MI	1,171		100.0%
April 2018	Net Lease	Foley, MN	1,176		100.0%
April 2018	Net Lease	Moscow Mills, MO	1,237		100.0%
April 2018	Net Lease	Wonder Lake, IL	1,255		100.0%
May 2018	Diversified(3)	Isla Vista, CA	85,087		75.0%

Total real estate acquisitions			$	115,548


(1)	Properties were consolidated as of acquisition date.


(2)	Joint venture partner contributed $2.9 million to the partnership.


(3)	Joint venture partner contributed $4.6 million to the partnership.

The purchase prices were allocated to the asset acquisitions during the nine months ended September 30, 2018, as follows ($ in thousands):



	Purchase Price Allocation

Land	$	40,019
Building	73,794
Intangibles	2,065
Below Market Lease Intangibles	(330		)
Total purchase price	$	115,548

The weighted average amortization period for intangible assets acquired during the nine months ended September 30, 2018 was 18.5 years. The Company recorded $2.0 million and $3.4 million revenues from its 2018 acquisitions for the three and nine months ended September 30, 2018, respectively. The Company recorded $0.7 million and $1.5 million in earnings (losses) from its 2018 acquisitions for the three and nine months ended September 30, 2018, respectively, which is included in its consolidated statements of income.

Sales

The Company sold the following properties during the nine months ended September 30, 2019 ($ in thousands):



Sales Date	Type	Primary Location(s)	Net Sales Proceeds		Net Book Value		Realized Gain/(Loss)			Properties	Units Sold	Units Remaining

N/A	Condominium	Las Vegas, NV	$	—	$	—	$	—		—	—	1
Various	Condominium	Miami, FL	4,195		3,796		399			—	14	8
April 2019	Diversified	Wayne, NJ	1,729		4,799		(3,070		)	1	—	—
May 2019	Diversified	Grand Rapids, MI	10,019		8,254		1,765			1	—	—
August 2019	Diversified	Grand Rapids, MI	6,970		4,920		2,050			1	—	—
Totals			$	22,913	$	21,769	$	1,144

The Company sold the following properties during the nine months ended September 30, 2018 ($ in thousands):



Sales Date	Type	Primary Location(s)	Net Sales Proceeds		Net Book Value		Realized Gain/(Loss)			Properties	Units Sold	Units Remaining

Various	Condominium	Las Vegas, NV	$	6,228	$	3,116	$	3,112		—	8	5
Various	Condominium	Miami, FL	4,844		3,987		857			—	18	30
March 2018	Diversified	El Monte, CA	71,807		52,610		19,197		(1)	1	—	—
March 2018	Diversified	Richmond, VA	20,966		11,370		9,596		(2)	1	—	—
September 2018	Diversified	St. Paul, MN	109,275		47,627		61,648		(3)	4	—	—
Totals			$	213,120	$	118,710	$	94,410


(1)	This property had a third party investor. The third party investor has been allocated $7.0 million of the realized gain, which is included in net (income) loss attributable to noncontrolling interest in consolidated joint ventures, for the nine months ended September 30, 2018, on the consolidated statements of income.


(2)	This property had a third party investor. The third party investor has been allocated $0.4 million of the realized gain, which is included in net (income) loss attributable to noncontrolling interest in consolidated joint ventures, for the nine months ended September 30, 2018, on the consolidated statements of income.

(3)

This property had a third party investor. The third party investor has been allocated $7.9 million of the realized gain, which is included in net (income) loss attributable to noncontrolling interest in consolidated joint ventures, for the nine months ended September 30, 2018, on the consolidated statements of income.

INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED JOINT VENTURES

9 Months Ended

Sep. 30, 2019

Equity Method Investments and Joint Ventures [Abstract]

INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED JOINT VENTURES

6. INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED JOINT VENTURES

The following is a summary of the Company’s investments in and advances to unconsolidated joint ventures, which we account for using the equity method, as of September 30, 2019 and December 31, 2018 ($ in thousands):



Entity	September 30, 2019		December 31, 2018

Grace Lake JV, LLC	$	3,799	$	5,316
24 Second Avenue Holdings LLC	47,620		35,038
Investment in unconsolidated joint ventures	$	51,419	$	40,354

The following is a summary of the Company’s allocated earnings (losses) based on its ownership interests from investment in unconsolidated joint ventures for the three and nine months ended September 30, 2019 and 2018 ($ in thousands):



	Three Months Ended September 30,					Nine Months Ended September 30,
Entity	2019		2018			2019		2018

Grace Lake JV, LLC	$	517	$	605		$	1,549	$	1,138
24 Second Avenue Holdings LLC	577		(204		)	2,068		(672		)
Earnings (loss) from investment in unconsolidated joint ventures	$	1,094	$	401		$	3,617	$	466

Grace Lake JV, LLC

In connection with the origination of a loan in April 2012, the Company received a 25% equity interest with the right to convert upon a capital event. On March 22, 2013, the loan was refinanced, and the Company converted its interest into a 19% limited liability company membership interest in Grace Lake JV, LLC (“Grace Lake LLC”), which holds an investment in an office building complex. After taking into account the preferred return of 8.25% and the return of all equity remaining in the property to the Company’s operating partner, the Company is entitled to 25% of the distribution of all excess cash flows and all disposition proceeds upon any sale. The Company is not legally required to provide any future funding to Grace Lake JV. The Company accounts for its interest in Grace Lake JV using the equity method of accounting, as it has a 19% investment, compared to the 81% investment of its operating partner and does not control the entity.

The Company’s investment in Grace Lake LLC is an unconsolidated joint venture, which is a VIE for which the Company is not the primary beneficiary. This joint venture was deemed to be a VIE primarily based on the fact there are disproportionate voting and economic rights within the joint venture. The Company determined that it was not the primary beneficiary of this VIE based on the fact that the Company has a passive investment and no control of this entity and therefore does not have controlling financial interests in this VIE. The Company’s maximum exposure to loss is limited to its investment in the VIE. The Company has not provided financial support to this VIE that it was not previously contractually required to provide.

During the nine months ended September 30, 2019, the Company received $3.1 million of distributions from its investment in Grace Lake JV, LLC. During the nine months ended September 30, 2018, the Company received $1.3 million of distributions from its investment in Grace Lake JV, LLC.

24 Second Avenue Holdings LLC

On August 7, 2015, the Company entered into a joint venture, 24 Second Avenue Holdings LLC (“24 Second Avenue”), with an operating partner (the “Operating Partner”) to invest in a ground-up residential/retail condominium development and construction project located at 24 Second Avenue, New York, NY. The Company accounted for its interest in 24 Second Avenue using the equity method of accounting as its joint venture partner was the managing member of 24 Second Avenue and had substantive management rights.

During the three months ended March 31, 2019, the Company converted its existing $35.0 million common equity interest into a $35.0 million priority preferred equity position. The Company also provided $50.4 million in first mortgage financing in order to refinance the existing $48.1 million first mortgage construction loan which was made by another lending institution. In addition to the new $50.4 million first mortgage loan, the Company also funded a $6.5 million mezzanine loan for use in completing the project. The Operating Partner must fully fund any and all additional capital for necessary expenses.

Due to the Company’s non-controlling equity interest in 24 Second Avenue, the Company accounts for the new loans as additional investments in the joint venture.

During the three and nine months ended September 30, 2019, the Company recorded $0.6 million and $2.1 million, respectively, in income (expenses), each of which is recorded in earnings (loss) from investment in unconsolidated joint ventures in the consolidated statements of income. During the three and nine months ended September 30, 2018, the Company recorded $(0.2) million and $(0.7) million, respectively, in income (expenses), each of which is recorded in earnings (loss) from investment in unconsolidated joint ventures in the consolidated statements of income. During 2018, the Company capitalized interest related to the cost of its investment in 24 Second Avenue, as 24 Second Avenue had activities in progress necessary to construct and ultimately sell condominium units. During the nine months ended September 30, 2019, the Company capitalized $0.1 million of interest expense, using a weighted average interest rate. During the three and nine months ended September 30, 2018, the Company recorded $0.4 million and $1.1 million, respectively, of interest expense, using a weighted average interest rate. The capitalized interest expense was recorded in investment in unconsolidated joint ventures in the consolidated balance sheets. As a result of the transactions described above, during the three months ended March 31, 2019, the Company no longer capitalizes interest related to this investment, and income generated from the new loans is accounted for as earnings from investment in unconsolidated joint ventures.

As of December 31, 2018, 24 Second Avenue had $46.7 million of loans payable to a third party lender. 24 Second Avenue consists of 30 residential condominium units and one commercial condominium unit. 24 Second Avenue started closing on the existing sales contracts during the quarter ended March 31, 2019, upon receipt of New York City Building Department approvals and a temporary certificate of occupancy for a portion of the project. As of September 30, 2019, 24 Second Avenue sold 17 residential condominium units for $47.3 million in total gross sale proceeds and one residential condominium unit was under contract for sale for $1.2 million in gross sales proceeds. As of September 30, 2019, 24 Second Avenue is holding a 15% deposit on the sales contract. As of September 30, 2019, the Company had no additional remaining capital commitment to 24 Second Avenue.

The Company’s investment in 24 Second Avenue is an unconsolidated joint venture, which is a VIE for which the Company is not the primary beneficiary. This joint venture was deemed to be a VIE primarily based on (i) the fact that the total equity investment at risk (inclusive of the additional financing the Company provided through the first mortgage and mezzanine loans) is sufficient to permit the entities to finance activities without additional subordinated financial support provided by any parties, including equity holders; and (ii) the voting and economic rights are not disproportionate within the joint venture. The Company determined that it was not the primary beneficiary of this VIE because it does not have a controlling financial interest.

The Company holds its investment in 24 Second Avenue in a TRS.

Combined Summary Financial Information for Unconsolidated Joint Ventures

The following is a summary of the combined financial position of the unconsolidated joint ventures in which the Company had investment interests as of September 30, 2019 and December 31, 2018 ($ in thousands):



	September 30, 2019		December 31, 2018

Total assets	$	123,871	$	167,837
Total liabilities	80,333		116,667
Partners’/members’ capital	$	43,538	$	51,170

The following is a summary of the combined results from operations of the unconsolidated joint ventures for the period in which the Company had investment interests during the nine months ended September 30, 2019 and 2018 ($ in thousands):



	Three Months Ended September 30,					Nine Months Ended September 30,
	2019			2018		2019		2018

Total revenues	$	3,915		$	4,351	$	14,945	$	13,671
Total expenses	4,595			3,415		12,029		9,788
Net income (loss)	$	(680	)	$	936	$	2,916	$	3,883

DEBT OBLIGATIONS, NET

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

DEBT OBLIGATIONS, NET

7. DEBT OBLIGATIONS, NET

The details of the Company’s debt obligations at September 30, 2019 and December 31, 2018 are as follows ($ in thousands):

September 30, 2019



Debt Obligations	Committed Financing		Debt Obligations Outstanding			Committed but Unfunded		Interest Rate at September 30, 2019(1)	Current Term Maturity	Remaining Extension Options	Eligible Collateral	Carrying Amount of Collateral		Fair Value of Collateral

Committed Loan Repurchase Facility	$	600,000	$	191,031		$	408,969	3.78% - 4.28%	2/24/2022	(2)	(3)	$	283,517	$	283,746
Committed Loan Repurchase Facility	350,000		63,996			286,004		4.25% - 4.60%	5/24/2020	(4)	(5)	100,354		102,616
Committed Loan Repurchase Facility	300,000		211,350			88,650		4.00% - 4.53%	4/10/2020	(6)	(7)	343,448		343,448
Committed Loan Repurchase Facility	300,000		116,043			183,957		3.81% - 4.06%	5/6/2021	(8)	(3)	174,001		174,353
Committed Loan Repurchase Facility	100,000		87,174			12,826		4.02% - 4.28%	7/20/2021	(9)	(3)	135,373		135,606
Committed Loan Repurchase Facility	100,000		90,927			9,073		4.03%	3/26/2020	(10)	(11)	121,899		121,899
Total Committed Loan Repurchase Facilities	1,750,000		760,521			989,479						1,158,592		1,161,668
Committed Securities Repurchase Facility	400,000		85,457			314,543		2.38% - 2.87%	3/4/2021	N/A	(12)	103,547		103,547
Uncommitted Securities Repurchase Facility	N/A (12)		940,070			N/A (13)		2.45% - 3.78%	10/2019 - 12/2019	N/A	(12)	1,047,663		1,047,663		(14)
Total Repurchase Facilities	2,150,000		1,786,048			1,304,022						2,309,802		2,312,878
Revolving Credit Facility	266,430		—			266,430		NA	2/11/2020	(15)	N/A (16)	N/A (16)		N/A (16)
Mortgage Loan Financing	723,313		723,313			—		4.25% - 6.75%	2020 - 2029(17)	N/A	(18)	902,656		1,093,952		(19)
CLO Debt	117,760		117,760		(20)	—		3.40% - 5.62%	2021-2034	N/A	(21)	274,149		274,523
Borrowings from the FHLB	1,945,795		1,076,449			869,346		1.47% - 2.95%	2019 - 2024	N/A	(22)	1,411,022		1,422,246		(23)
Senior Unsecured Notes	1,166,201		1,157,117		(24)	—		5.250% - 5.875%	2021 - 2025	N/A	N/A (25)	N/A (25)		N/A (25)
Total Debt Obligations, Net	$	6,369,499	$	4,860,687		$	2,439,798					$	4,897,629	$	5,103,599


(1)	September 2019 LIBOR rates are used to calculate interest rates for floating rate debt.


(2)	Two additional 12-month periods at Company’s option. No new advances are permitted after the initial maturity date.


(3)	First mortgage commercial real estate loans and senior and pari passu interests therein. It does not include the real estate collateralizing such loans.


(4)	One additional 12-month period at Company’s option.


(5)	First mortgage commercial real estate loans. It does not include the real estate collateralizing such loans.


(6)	One additional 364-day period with Bank’s consent.


(7)	First mortgage and mezzanine commercial real estate loans and senior and pari passu interests therein. It does not include the real estate collateralizing such loans.


(8)	One additional 12-month extension period and two additional 6-month extension periods at Company’s option.


(9)	One additional 12-month extension period at Company’s option. No new advances are permitted after the initial maturity date.


(10)	The Company may extend periodically with lender’s consent. At no time can the maturity of the facility exceed 364 days from the date of determination.


(11)	First mortgage, junior and mezzanine commercial real estate loans, and certain senior and/or pari passu interests therein.


(12)	Commercial real estate securities. It does not include the real estate collateralizing such securities.


(13)	Represents uncommitted securities repurchase facilities for which there is no committed amount subject to future advances.


(14)	Includes $2.3 million of restricted securities under the risk retention rules of Dodd-Frank Act. These securities are accounted for as held-to-maturity and recorded at amortized cost basis.


(15)	Three additional 12-month periods at Company’s option.


(16)	The obligations under the Revolving Credit Facility are guaranteed by the Company and certain of its subsidiaries and secured by equity pledges in certain Company subsidiaries.


(17)	Anticipated repayment dates.


(18)	Certain of our real estate investments serve as collateral for our mortgage loan financing.


(19)	Using undepreciated carrying value of commercial real estate to approximate fair value.


(20)	Presented net of unamortized debt issuance costs of $0.4 million at September 30, 2019.


(21)	First mortgage commercial real estate loans and pari passu interests therein. It does not include the real estate collateralizing such loans.


(22)	First mortgage commercial real estate loans and investment grade commercial real estate securities. It does not include the real estate collateralizing such loans and securities.


(23)	Includes $9.9 million of restricted securities under the risk retention rules of Dodd-Frank Act. These securities are accounted for as held-to-maturity and recorded at amortized cost basis.


(24)	Presented net of unamortized debt issuance costs of $9.1 million at September 30, 2019.


(25)	The obligations under the senior unsecured notes are guaranteed by the Company and certain of its subsidiaries.

December 31, 2018



Debt Obligations	Committed Financing		Debt Obligations Outstanding				Committed but Unfunded		Interest Rate at December 31, 2018(1)	Current Term Maturity	Remaining Extension Options	Eligible Collateral	Carrying Amount of Collateral		Fair Value of Collateral

Committed Loan Repurchase Facility	$	600,000	$	180,597			$	419,403	4.21% - 4.96%	10/1/2020	(2)	(3)	$	262,642	$	261,602
Committed Loan Repurchase Facility	350,000		63,679				286,321		4.68% - 4.98%	5/24/2019	(4)	(5)	87,385		88,762
Committed Loan Repurchase Facility	300,000		120,631				179,369		4.46% - 4.96%	4/7/2019	(6)	(7)	204,747		205,219
Committed Loan Repurchase Facility	300,000		79,886				220,114		4.44% - 4.94%	5/6/2021	(8)	(3)	117,382		117,366
Committed Loan Repurchase Facility	100,000		52,738				47,262		4.58% - 4.96%	7/20/2021	(9)	(3)	72,154		72,154
Committed Loan Repurchase Facility	100,000		—				100,000		NA	12/26/2019	(10)	(11)	—		—
Total Committed Loan Repurchase Facilities	1,750,000		497,531				1,252,469						744,310		745,103
Committed Securities Repurchase Facility	400,000		—				400,000		NA	9/30/2019	N/A	(12)	—		—
Uncommitted Securities Repurchase Facility	N/A (12)		166,154				N/A (13)		2.99% - 4.55%	1/2019 - 3/2019	N/A	(12)	187,803		187,803		(14)(15)
Total Repurchase Facilities	2,150,000		663,685				1,652,469						932,113		932,906
Revolving Credit Facility	266,430		—				266,430		NA	2/11/2019	(16)	N/A (17)	N/A (17)		N/A (17)
Mortgage Loan Financing	743,902		743,902				—		4.25% - 7.00%	2020 - 2028(18)	N/A	(19)	939,362		1,108,968		(20)
CLO Debt	601,543		601,543		(21	)	—		3.34% - 6.06%	2021-2034	N/A	(22)	710,502		710,737
Participation Financing - Mortgage Loan Receivable	2,453		2,453				—		17.00%	6/6/2019	N/A	(3)	2,453		2,453
Borrowings from the FHLB	1,933,522		1,286,000				647,522		1.18% - 3.01%	2019 - 2024	N/A	(23)	1,652,952		1,655,150		(24)
Senior Unsecured Notes	1,166,201		1,154,991		(25)		—		5.250% - 5.875%	2021 - 2025	N/A	N/A (26)	N/A (26)		N/A (26)
Total Debt Obligations	$	6,864,051	$	4,452,574			$	2,566,421					$	4,237,382	$	4,410,214


(1)	December 31, 2018 LIBOR rates are used to calculate interest rates for floating rate debt.


(2)	Two additional 12-month periods at Company’s option. No new advances are permitted after the initial maturity date.


(3)	First mortgage commercial real estate loans and senior and pari passu interests therein. It does not include the real estate collateralizing such loans.


(4)	Two additional 12-month periods at Company’s option.


(5)	First mortgage commercial real estate loans. It does not include the real estate collateralizing such loans.


(6)	One additional 364-day periods at Company’s option and one additional 364-day period with Bank’s consent.


(7)	First mortgage and mezzanine commercial real estate loans and senior pari passu interests therein. It does not include the real estate collateralizing such loans.


(8)	One additional 12-month extension period and two additional 6-month extension periods at Company’s option.


(9)	One additional 12-month extension period at Company’s option. No new advances are permitted after the initial maturity date.


(10)	The Company may extend periodically with lender’s consent. At no time can the maturity of the facility exceed 364 days from the date of determination.


(11)	First mortgage, junior and mezzanine commercial real estate loans, and certain senior and/or pari passu interests therein.


(12)	Commercial real estate securities. It does not include the real estate collateralizing such securities.


(13)	Represents uncommitted securities repurchase facilities for which there is no committed amount subject to future advances.


(14)	Includes $3.0 million of restricted securities under the risk retention rules of Dodd-Frank Act. These securities are accounted for as held-to-maturity and recorded at amortized cost basis.


(15)	Includes $6.0 million of securities purchased in the secondary market of the Company’s October 2017 CLO issuance. These securities are not included in real estate securities but were rather considered a partial retirement of CLO debt.


(16)	Four additional 12-month periods at Company’s option.


(17)	The obligations under the Revolving Credit Facility are guaranteed by the Company and certain of its subsidiaries and secured by equity pledges in certain Company subsidiaries.


(18)	Anticipated repayment dates.


(19)	Certain of our real estate investments serve as collateral for our mortgage loan financing.


(20)	Using undepreciated carrying value of commercial real estate to approximate fair value.


(21)	Presented net of unamortized debt issuance costs of $2.6 million at December 31, 2018.


(22)	First mortgage commercial real estate loans and pari passu interests therein. It does not include the real estate collateralizing such loans.


(23)	First mortgage commercial real estate loans and investment grade commercial real estate securities. It does not include the real estate collateralizing such loans and securities.


(24)	Includes $9.7 million of restricted securities under the risk retention rules of Dodd-Frank Act. These securities are accounted for as held-to-maturity and recorded at amortized cost basis.


(25)	Presented net of unamortized debt issuance costs of $11.2 million at December 31, 2018.


(26)	The obligations under the senior unsecured notes are guaranteed by the Company and certain of its subsidiaries.

Committed Loan and Securities Repurchase Facilities

The Company has entered into multiple committed master repurchase agreements in order to finance its lending activities. The Company has entered into six committed master repurchase agreements, as outlined in the September 30, 2019 table above, totaling $1.8 billion of credit capacity. Assets pledged as collateral under these facilities are limited to whole mortgage loans or participation interests in mortgage loans collateralized by first liens on commercial properties and mezzanine debt. The Company also has a term master repurchase agreement with a major U.S. bank to finance CMBS totaling $400.0 million. The Company’s repurchase facilities include covenants covering net worth requirements, minimum liquidity levels, maximum leverage ratios, and minimum fixed charge coverage ratios. The Company believes it was in compliance with all covenants as of September 30, 2019 and December 31, 2018.

The Company has the option to extend some of the current facilities subject to a number of conditions, including satisfaction of certain notice requirements, no event of default exists, and no margin deficit exists, all as defined in the repurchase facility agreements. The lenders have sole discretion with respect to the inclusion of collateral in these facilities, to determine the market value of the collateral on a daily basis, to be exercised on a good faith basis, and have the right in certain cases to require additional collateral, a full and/or partial repayment of the facilities (margin call), or a reduction in unused availability under the facilities, sufficient to rebalance the facilities if the estimated market value of the included collateral declines.

On January 4, 2018, the Company exercised its option to extend one of its committed loan repurchase facilities with a major banking institution for a term of one year.

On April 3, 2018, the Company exercised its option to extend one of its credit facilities with a major banking institution for a term of one year and agreed with such banking institution to decrease the maximum funding capacity under such facility from $450 million to $350 million together with other related modifications, all of which will be memorialized in definitive documentation.

On May 7, 2018, the Company executed an amendment of one of its committed loan repurchase facilities with a major banking institution, providing for, among other things, the extension of the maximum term of the facility to May 6, 2023 and increasing the maximum funding capacity to $300.0 million.

On July 20, 2018, the Company executed an amendment of one of its committed loan repurchase facilities with a major banking institution, providing for, among other things, the extension of the maximum term of the facility to July 20, 2021 and decreasing the interest rate spreads thereunder by 25 basis points.

On December 27, 2018, the Company executed a new $100.0 million committed loan repurchase facility with a major banking institution to finance first mortgage, junior and mezzanine commercial real estate loans, and certain senior and/or pari passu interests therein. The facility has a one-year initial term and the Company may extend periodically with lender’s consent, but at no time can the maturity of the facility exceed 364 days from the date of determination.

On February 26, 2019, the Company executed an amendment of one of its committed loan repurchase facilities with a major banking institution, providing for, among other things, the extension of the initial term of the facility to February 24, 2022. The facility has two additional 12-month extension periods at the Company’s option. No new advances are permitted after the initial maturity date.

On March 4, 2019, the Company executed an amendment of its committed securities repurchase facility with a major banking institution, providing for, among other things, the extension of the initial term of the facility to March 4, 2021.

On May 1, 2019, the Company amended the pricing side letter related to one of its committed loan repurchase facilities with a major banking institution, providing for, among other things, the extension of the initial term of the facility to March 26, 2020.

On May 24, 2019, the Company exercised its option to extend one of its committed loan repurchase facilities with a major banking institution for a term of one year.

As of September 30, 2019, the Company had repurchase agreements with 10 counterparties, with total debt obligations outstanding of $1.8 billion. As of September 30, 2019, two counterparties, JP Morgan and Wells Fargo, held collateral that exceeded the amounts borrowed under the related repurchase agreements by more than $82.0 million, or 5% of our total equity. As of September 30, 2019, the weighted average haircut, or the percent of collateral value in excess of the loan amount, under our repurchase agreements was 22.8%. There have been no significant fluctuations in haircuts across asset classes on our repurchase facilities.

Revolving Credit Facility

The Company’s revolving credit facility (the “Revolving Credit Facility”) provides for an aggregate maximum borrowing amount of $266.4 million, including a $25.0 million sublimit for the issuance of letters of credit. The Revolving Credit Facility is available on a revolving basis to finance the Company’s working capital needs and for general corporate purposes. On January 15, 2019, the Company extended the maturity date of the Revolving Credit Facility to February 11, 2020. The Company has additional one-year extension options to extend the final maturity date to February 2023. Interest on the Revolving Credit Facility is one-month LIBOR plus 3.25% per annum payable monthly in arrears.

The obligations under the Revolving Credit Facility are guaranteed by the Company and certain of its subsidiaries. The Revolving Credit Facility is secured by a pledge of the shares of (or other ownership or equity interests in) certain subsidiaries to the extent the pledge is not restricted under existing regulations, law or contractual obligations.

LCFH is subject to customary affirmative covenants and negative covenants, including limitations on the incurrence of additional debt, liens, restricted payments, sales of assets and affiliate transactions. In addition, under the Revolving Credit Facility, LCFH is required to comply with financial covenants relating to minimum net worth, maximum leverage, minimum liquidity, and minimum fixed charge coverage, consistent with our other credit facilities. The Company’s ability to borrow under the Revolving Credit Facility is dependent on, among other things, LCFH’s compliance with the financial covenants. The Revolving Credit Facility contains customary events of default, including non-payment of principal or interest, fees or other amounts, failure to perform or observe covenants, cross-default to other indebtedness, the rendering of judgments against the Company or certain of our subsidiaries to pay certain amounts of money and certain events of bankruptcy or insolvency.

Debt Issuance Costs

As discussed in Note 2, Significant Accounting Policies in the Annual Report, the Company considers its committed loan master repurchase facilities and Revolving Credit Facility to be revolving debt arrangements. As such, the Company continues to defer and present costs associated with these facilities as an asset, subsequently amortizing those costs ratably over the term of each revolving debt arrangement. As of September 30, 2019 and December 31, 2018, the amount of unamortized costs relating to such facilities are $6.8 million and $6.3 million, respectively, and are included in other assets in the consolidated balance sheets.

Uncommitted Securities Repurchase Facilities

The Company has also entered into multiple master repurchase agreements with several counterparties collateralized by real estate securities. The borrowings under these agreements have typical advance rates between 75% and 95% of the fair value of collateral.

Mortgage Loan Financing

These non-recourse debt agreements provide for fixed rate financing at rates, ranging from 4.25% to 6.75%, with anticipated maturity dates between 2020 - 2029 as of September 30, 2019. These loans have carrying amounts of $723.3 million and $743.9 million, net of unamortized premiums of $5.3 million and $5.8 million as of September 30, 2019 and December 31, 2018, respectively, representing proceeds received upon financing greater than the contractual amounts due under these agreements. The premiums are being amortized over the remaining life of the respective debt instruments using the effective interest method. The Company recorded $0.5 million and $1.3 million of premium amortization, which decreased interest expense, for the three and nine months ended September 30, 2019, respectively. The Company recorded $0.3 million and $0.8 million of premium amortization, which decreased interest expense, for the three and nine months ended September 30, 2018, respectively. The loans are collateralized by real estate and related lease intangibles, net, of $902.7 million and $939.4 million as of September 30, 2019 and December 31, 2018, respectively. During the nine months ended September 30, 2019 and 2018, the Company executed nine and eleven term debt agreements, respectively, to finance properties in its real estate portfolio.

On February 6, 2019, the Company paid off $6.6 million of mortgage loan financing, recognizing a loss on extinguishment of debt of $1.1 million.

CLO Debt

The Company completed CLO issuances in the two transactions described below. As of September 30, 2019 and December 31, 2018, the Company had a total of $117.8 million and $601.5 million, respectively, of floating rate, non-recourse CLO debt included in debt obligations on its consolidated balance sheets. Unamortized debt issuance costs of $0.4 million and $2.6 million are included in CLO debt as of September 30, 2019 and December 31, 2018, respectively. As of September 30, 2019, the CLO debt has interest rates of 3.4% to 5.62% (with a weighted average of 4.97%). As of September 30, 2019, collateral for the CLO debt comprised $274.1 million of first mortgage commercial mortgage real estate loans. In October 2019, the Company redeemed all outstanding debt obligations related to the two CLO transactions.

On October 17, 2017, a consolidated subsidiary of the Company consummated a securitization of floating-rate commercial mortgage loans through a static CLO structure. Over $456.9 million of balance sheet loans (“Contributed Loans”) were contributed into the CLO. Certain of the Contributed Loans have future funding components that were not contributed to the CLO and that are retained by a consolidated subsidiary of the Company in the form of a participation interest or separate note. However, for a limited period of time, to the extent loans in the CLO are repaid, the CLO may acquire portions of the future fundings from the Company’s consolidated subsidiary. A consolidated subsidiary of the Company retained an approximately 18.5% interest in the CLO by retaining the most subordinate classes of notes issued by the CLO. The Company retains control over major decisions made with respect to the administration of the Contributed Loans and appoints the special servicer under the CLO. The CLO is a VIE and the Company is the primary beneficiary and, therefore, consolidates the VIE - See Note 10.

On December 21, 2017, a subsidiary of the Company consummated a securitization of fixed and floating-rate commercial mortgage loans through a static CLO structure. Over $431.5 million of Contributed Loans were contributed into the CLO. Certain of the Contributed Loans have future funding components that were not contributed to the CLO and that are retained by a consolidated subsidiary of the Company in the form of a participation interest or separate note. However, the CLO may acquire portions of the future fundings from the Company’s consolidated subsidiary, as long as certain requirements are met. A consolidated subsidiary of the Company retained an approximately 25% interest in the CLO by retaining the most subordinate classes of notes issued by the CLO. The Company retains control over major decisions made with respect to the administration of the Contributed Loans and appoints the special servicer under the CLO. The CLO is a VIE and the Company is the primary beneficiary and, therefore, consolidates the VIE - See Note 10.

Participation Financing - Mortgage Loan Receivable

During the three months ended March 31, 2017, the Company sold a participating interest in a first mortgage loan receivable to a third party. The sales proceeds of $4.0 million were considered non-recourse secured borrowings and were recognized in debt obligations on the Company’s consolidated balance sheets with $2.5 million outstanding as of December 31, 2018. There were no non-recourse secured borrowings recognized in debt obligations on the Company’s consolidated balance sheets as of September 30, 2019, as the loan matured and was repaid during the three months ended June 30, 2019. The Company recorded $0.2 million of interest expense for the nine months ended September 30, 2019. The Company recorded $0.1 million and $0.4 million of interest expense for the three and nine months ended September 30, 2018, respectively.

Borrowings from the Federal Home Loan Bank (“FHLB”)

On July 11, 2012, Tuebor Captive Insurance Company LLC (“Tuebor”), a consolidated subsidiary of the Company, became a member of the FHLB and subsequently drew its first secured funding advances from the FHLB. On December 6, 2017, Tuebor’s advance limit was updated by the FHLB to the lowest of a Set Dollar Limit ($2.0 billion), 40% of Tuebor’s total assets or 150% of the Company’s total equity. Beginning April 1, 2020 through December 31, 2020, the Set Dollar Limit will be $1.5 billion. Beginning January 1, 2021 through February 19, 2021, the Set Dollar Limit will be $750.0 million. Tuebor is well-positioned to meet its obligations and pay down its advances in accordance with the scheduled reduction in the Set Dollar Limit, which remains subject to revision by the FHLB or as a result of any future changes in applicable regulations.

As of September 30, 2019, Tuebor had $1.1 billion of borrowings outstanding (with an additional $869.3 million of committed term financing available from the FHLB), with terms of overnight to 5.0 years (with a weighted average of 2.3 years), interest rates of 1.47% to 2.95% (with a weighted average of 2.50%), and advance rates of 61.0% to 95.7% of the collateral. As of September 30, 2019, collateral for the borrowings was comprised of $721.5 million of CMBS and U.S. Agency Securities and $689.5 million of first mortgage commercial real estate loans.

As of December 31, 2018, Tuebor had $1.3 billion of borrowings outstanding (with an additional $647.5 million of committed term financing available from the FHLB), with terms of overnight to 5.75 years (with a weighted average of 2.5 years), interest rates of 1.18% to 3.01% (with a weighted average of 2.55%), and advance rates of 56.4% to 95.2% of the collateral. As of December 31, 2018, collateral for the borrowings was comprised of $1.0 billion of CMBS and U.S. Agency Securities and $637.2 million of first mortgage commercial real estate loans.

Tuebor is subject to state regulations which require that dividends (including dividends to the Company as its parent) may only be made with regulatory approval. However, there can be no assurance that we would obtain such approval if sought. Largely as a result of this restriction, approximately $1.9 billion of the member’s capital was restricted from transfer via dividend to Tuebor’s parent without prior approval of state insurance regulators at September 30, 2019. To facilitate intercompany cash funding of operations and investments, Tuebor and its parent maintain regulator-approved intercompany borrowing/lending agreements.

Effective February 19, 2016, the Federal Housing Finance Agency (the “FHFA’’), regulator of the FHLB, adopted a final rule amending its regulation regarding the eligibility of captive insurance companies for FHLB membership. According to the final rule, Ladder’s captive insurance company subsidiary, Tuebor may remain as a member of the FHLB through February 19, 2021 (the “Transition Period”). During the Transition Period, Tuebor is eligible to continue to draw new additional advances, extend the maturities of existing advances, and pay off outstanding advances on the same terms as non-captive insurance company FHLB members with the following two exceptions:


1.	New advances (including any existing advances that are extended during the Transition Period) will have maturity dates on or before February 19, 2021; and


2.	The FHLB will make new advances to Tuebor subject to a requirement that Tuebor’s total outstanding advances do not exceed 40% of Tuebor’s total assets.

Tuebor has executed new advances since the effective date of the new rule in the ordinary course of business.

FHLB advances amounted to 22.1% of the Company’s outstanding debt obligations as of September 30, 2019. The Company does not anticipate that the FHFA’s final regulation will materially impact its operations as it will continue to access FHLB advances during the five-year Transition Period.

There is no assurance that the FHFA or the FHLB will not take actions that could adversely impact Tuebor’s membership in the FHLB and continuing access to new or existing advances prior to February 19, 2021.

Senior Unsecured Notes

LCFH issued the 2025 Notes, the 2022 Notes, the 2021 Notes and the 2017 Notes (each as defined below, and collectively, the “Notes”) with Ladder Capital Finance Corporation (“LCFC”), as co-issuers on a joint and several basis. LCFC is a 100% owned finance subsidiary of Series TRS of LCFH with no assets, operations, revenues or cash flows other than those related to the issuance, administration and repayment of the Notes. The Company and certain subsidiaries of LCFH currently guarantee the obligations under the Notes and the indenture. The Company is the general partner of LCFH and, through LCFH and its subsidiaries, operates the Ladder Capital business. As of September 30, 2019, the Company has a 89.8% economic and voting interest in LCFH and controls the management of LCFH as a result of its ability to appoint board members. Accordingly, the Company consolidates the financial results of LCFH and records noncontrolling interest for the economic interest in LCFH held by the Continuing LCFH Limited Partners. In addition, the Company, through certain subsidiaries which are treated as TRSs, is indirectly subject to U.S. federal, state and local income taxes. Other than the noncontrolling interest in the Operating Partnership and federal, state and local income taxes, there are no material differences between the Company’s consolidated financial statements and LCFH’s consolidated financial statements. The Company believes it was in compliance with all covenants of the Notes as of September 30, 2019 and December 31, 2018.

Unamortized debt issuance costs of $9.1 million and $11.2 million are included in senior unsecured notes as of September 30, 2019 and December 31, 2018, respectively, in accordance with GAAP.

2021 Notes

On August 1, 2014, LCFH issued $300.0 million in aggregate principal amount of 5.875% senior notes due August 1, 2021 (the “2021 Notes”). The 2021 Notes require interest payments semi-annually in cash in arrears on February 1 and August 1 of each year, beginning on February 1, 2015. The 2021 Notes will mature on August 1, 2021. The 2021 Notes are unsecured and are subject to incurrence-based covenants, including limitations on the incurrence of additional debt, restricted payments, liens, sales of assets, affiliate transactions and other covenants typical for financings of this type. At any time after August 1, 2017, the Company may redeem the 2021 Notes in whole or in part, upon not less than 30 nor more than 60 days’ notice, at redemption prices defined in the indenture governing the 2021 Notes, plus accrued and unpaid interest, if any, to the redemption date. On February 24, 2016, the board of directors authorized the Company to make up to $100.0 million in repurchases of the 2021 Notes from time to time without further approval. On May 2, 2018, the board of the directors authorized the Company to repurchase any or all of the 2021 Notes from time to time without further approval.

During the year ended December 31, 2016, the Company retired $33.8 million of principal of the 2021 Notes for a repurchase price of $28.2 million, recognizing a $5.1 million net gain on extinguishment of debt after recognizing $(0.4) million of unamortized debt issuance costs associated with the retired debt. As of September 30, 2019, the remaining $266.2 million in aggregate principal amount of the 2021 Notes is due August 1, 2021.

2022 Notes

On March 16, 2017, LCFH issued $500.0 million in aggregate principal amount of 5.250% senior notes due March 15, 2022 (the “2022 Notes”). The 2022 Notes require interest payments semi-annually in cash in arrears on March 15 and September 15 of each year, beginning on September 15, 2017. The 2022 Notes will mature on March 15, 2022. The 2022 Notes are unsecured and are subject to an unencumbered assets to unsecured debt covenant. At any time on or after September 15, 2021, the 2022 Notes are redeemable at the option of the Company, in whole or in part, upon not less than 15 nor more than 60 days’ notice, without penalty. On May 2, 2018, the board of the directors authorized the Company to repurchase any or all of the 2022 Notes from time to time without further approval.

2025 Notes

On September 25, 2017, LCFH issued $400.0 million in aggregate principal amount of 5.250% senior notes due October 1, 2025 (the “2025 Notes”). The 2025 Notes require interest payments semi-annually in cash in arrears on April 1 and October 1 of each year, beginning on April 1, 2018. The 2025 Notes will mature on October 1, 2025. The 2025 Notes are unsecured and are subject to an unencumbered assets to unsecured debt covenant. The Company may redeem the 2025 Notes, in whole, at any time, or from time to time, prior to their stated maturity. At any time after October 1, 2020, the Company may redeem the 2025 Notes in whole or in part, upon not less than 15 nor more than 60 days’ notice, at a redemption prices defined in the indenture governing the 2025 Notes, plus accrued and unpaid interest, if any, to the redemption date. On May 2, 2018, the board of the directors authorized the Company to repurchase any or all of the 2025 Notes from time to time without further approval.

Combined Maturity of Debt Obligations

The following schedule reflects the Company’s contractual payments under all borrowings by maturity ($ in thousands):



Period ending December 31,	Borrowings by Maturity(1)

2019 (last 3 months)	$	1,039,597
2020	1,052,894
2021	876,649
2022	655,706
2023	559,422
Thereafter	680,935
Subtotal	4,865,203
Debt issuance costs included in senior unsecured notes	(9,084		)
Debt issuance costs included in CLO debt	(394		)
Debt issuance costs included in mortgage loan financing	(380		)
Premiums included in mortgage loan financing(2)	5,342
Total	$	4,860,687


(1)	Contractual payments under current maturities, some of which are subject to extensions. The maturities listed above for 2019 relate to debt obligations that are subject to existing Company controlled extension options for one or more additional one year periods or could be refinanced by other existing facilities as of September 30, 2019.


(2)	Deferred gains on intercompany loans, secured by our own real estate, sold into securitizations. These premiums are amortized as a reduction to interest expense.

The Company’s debt facilities are subject to covenants which require the Company to maintain a minimum level of total equity. Largely as a result of this restriction, approximately $829.3 million of the total equity is restricted from payment as a dividend by the Company at September 30, 2019.

DERIVATIVE INSTRUMENTS

9 Months Ended

Sep. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS

8. DERIVATIVE INSTRUMENTS

The Company uses derivative instruments primarily to economically manage the fair value variability of fixed rate assets caused by interest rate fluctuations and overall portfolio market risk. The following is a breakdown of the derivatives outstanding as of September 30, 2019 and December 31, 2018 ($ in thousands):

September 30, 2019



			Fair Value				Remaining Maturity (years)
Contract Type	Notional		Asset(1)		Liability(1)		Remaining Maturity (years)

Caps
1 Month LIBOR	$	69,571	$	—	$	—	0.61
Futures
5-year Swap	49,200		—		20		0.25
10-year Swap	149,500		—		61		0.25
5-year U.S. Treasury Note	2,200		—		1		0.25
Total futures	200,900		—		82
Credit derivatives
S&P 500 Put Options	6,000		22		—		0.30
Total credit derivatives	6,000		22		—
Total derivatives	$	276,471	$	22	$	82

(1) Shown as derivative instruments, at fair value, in the accompanying consolidated balance sheets.

December 31, 2018



			Fair Value				Remaining Maturity (years)
Contract Type	Notional		Asset(1)		Liability(1)		Remaining Maturity (years)

Caps
1MO LIBOR	$	69,571	$	—	$	—	1.35
Futures
5-year Swap	$	274,900	$	—	$	526	0.25
10-year Swap	227,700		—		436		0.25
5-year U.S. Treasury Note	6,800		—		13		0.25
Total futures	509,400		—		975
Total derivatives	$	578,971	$	—	$	975

(1) Shown as derivative instruments, at fair value, in the accompanying consolidated balance sheets.

The following table indicates the net realized gains (losses) and unrealized appreciation (depreciation) on derivatives, by primary underlying risk exposure, as included in net result from derivatives transactions in the consolidated statements of operations for the three and nine months ended September 30, 2019 and 2018 ($ in thousands):



	Three Months Ended September 30, 2019									Nine Months Ended September 30, 2019
	Unrealized Gain/(Loss)			Realized Gain/(Loss)			Net Result from Derivative Transactions			Unrealized Gain/(Loss)			Realized Gain/(Loss)			Net Result from Derivative Transactions

Contract Type
Futures	$	(618	)	$	(8,868	)	$	(9,486	)	$	892		$	(36,761	)	$	(35,869	)
Credit Derivatives	(3		)	24			21			(3		)	(84		)	(87		)
Total	$	(621	)	$	(8,844	)	$	(9,465	)	$	889		$	(36,845	)	$	(35,956	)



	Three Months Ended September 30, 2018								Nine Months Ended September 30, 2018
	Unrealized Gain/(Loss)			Realized Gain/(Loss)		Net Result from Derivative Transactions			Unrealized Gain/(Loss)			Realized Gain/(Loss)			Net Result from Derivative Transactions

Contract Type
Futures	$	(940	)	$	8,099	$	7,159		$	(52	)	$	28,985		$	28,933
Swaps	—			—		—			1,403			(848		)	555
Credit Derivatives	(44		)	—		(44		)	5			(337		)	(332		)
Total	$	(984	)	$	8,099	$	7,115		$	1,356		$	27,800		$	29,156

The Company’s counterparties held $4.2 million and $5.0 million of cash margin as collateral for derivatives as of September 30, 2019 and December 31, 2018, respectively, which is included in restricted cash in the consolidated balance sheets.

Futures

Collateral posted with our futures counterparties is segregated in the Company’s books and records. Interest rate futures are centrally cleared by the Chicago Mercantile Exchange (“CME”) through a Futures Commission Merchant. Interest rate futures that are governed by an ISDA agreement provide for bilateral collateral pledging based on the counterparties’ market value. The counterparties have the right to re-pledge the collateral posted but have the obligation to return the pledged collateral, or substantially the same collateral, if agreed to by us, as the market value of the interest rate futures change.

The Company is required to post initial margin and daily variation margin for our interest rate futures that are centrally cleared by CME. CME determines the fair value of our centrally cleared futures, including daily variation margin. Effective January 3, 2017, CME amended their rulebooks to legally characterize daily variation margin payments for centrally cleared interest rate futures as settlement rather than collateral. As a result of this rule change, variation margin pledged on the Company’s centrally cleared interest rate futures is settled against the realized results of these futures.

Credit Risk-Related Contingent Features

The Company has agreements with certain of its derivative counterparties that contain a provision whereby, if the Company defaults on certain of its indebtedness, the Company could also be declared in default on its derivatives, resulting in an acceleration of payment under the derivatives. As of September 30, 2019 and December 31, 2018, the Company was in compliance with these requirements and not in default on its indebtedness. As of September 30, 2019 and December 31, 2018, there was no cash collateral held by the derivative counterparties for these derivatives, included in restricted cash in the consolidated statements of financial condition. No additional cash would be required to be posted if the acceleration of payment under the derivatives was triggered.

OFFSETTING ASSETS AND LIABILITIES

9 Months Ended

Sep. 30, 2019

Offsetting [Abstract]

OFFSETTING ASSETS AND LIABILITIES

9. OFFSETTING ASSETS AND LIABILITIES

The following tables present both gross information and net information about derivatives and other instruments eligible for offset in the statement of financial position as of September 30, 2019 and December 31, 2018. The Company’s accounting policy is to record derivative asset and liability positions on a gross basis, therefore, the following tables present the gross derivative asset and liability positions recorded on the balance sheets, while also disclosing the eligible amounts of financial instruments and cash collateral to the extent those amounts could offset the gross amount of derivative asset and liability positions. The actual amounts of collateral posted by or received from counterparties may be in excess of the amounts disclosed in the following tables as the following only disclose amounts eligible to be offset to the extent of the recorded gross derivative positions.

As of September 30, 2019

Offsetting of Financial Assets and Derivative Assets

($ in thousands)



Description	Gross amounts of recognized assets		Gross amounts offset in the balance sheet		Net amounts of assets presented in the balance sheet		Gross amounts not offset in the balance sheet				Net amount
Description	Gross amounts of recognized assets		Gross amounts offset in the balance sheet		Net amounts of assets presented in the balance sheet		Financial instruments		Cash collateral received/(posted)(1)		Net amount

Derivatives	$	22	$	—	$	22	$	—	$	—	$	22
Total	$	22	$	—	$	22	$	—	$	—	$	22

(1) Included in restricted cash on consolidated balance sheets.

As of September 30, 2019

Offsetting of Financial Liabilities and Derivative Liabilities

($ in thousands)



Description	Gross amounts of recognized liabilities		Gross amounts offset in the balance sheet		Net amounts of liabilities presented in the balance sheet		Gross amounts not offset in the balance sheet				Net amount
Description	Gross amounts of recognized liabilities		Gross amounts offset in the balance sheet		Net amounts of liabilities presented in the balance sheet		Financial instruments collateral		Cash collateral posted/(received)(1)		Net amount

Derivatives	$	82	$	—	$	82	$	—	$	82	$	—
Repurchase agreements	$	1,786,048	$	—	$	1,786,048	$	1,786,048	$	—	$	—
Total	$	1,786,130	$	—	$	1,786,130	$	1,786,048	$	82	$	—

(1) Included in restricted cash on consolidated balance sheets.

As of December 31, 2018

Offsetting of Financial Liabilities and Derivative Liabilities

($ in thousands)



Description	Gross amounts of recognized liabilities		Gross amounts offset in the balance sheet		Net amounts of liabilities presented in the balance sheet		Gross amounts not offset in the balance sheet				Net amount
Description	Gross amounts of recognized liabilities		Gross amounts offset in the balance sheet		Net amounts of liabilities presented in the balance sheet		Financial instruments collateral		Cash collateral posted/(received)		Net amount

Derivatives	$	975	$	—	$	975	$	—	$	975	$	—
Repurchase agreements	663,685		—		663,685		663,685		—		—
Total	$	664,660	$	—	$	664,660	$	663,685	$	975	$	—

(1) Included in restricted cash on consolidated balance sheets.

Master netting agreements that the Company has entered into with its derivative and repurchase agreement counterparties allow for netting of the same transaction, in the same currency, on the same date. Assets, liabilities, and collateral subject to master netting agreements as of September 30, 2019 and December 31, 2018 are disclosed in the tables above. The Company does not present its derivative and repurchase agreements net on the consolidated financial statements as it has elected gross presentation.

CONSOLIDATED VARIABLE INTEREST ENTITIES

9 Months Ended

Sep. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

CONSOLIDATED VARIABLE INTEREST ENTITIES

10. CONSOLIDATED VARIABLE INTEREST ENTITIES

FASB ASC Topic 810 — Consolidation (“ASC 810”), provides guidance on the identification of entities for which control is achieved through means other than voting rights (“variable interest entities” or “VIEs”) and the determination of which business enterprise, if any, should consolidate the VIEs. Generally, the consideration of whether an entity is a VIE applies when either: (1) the equity investors (if any) lack one or more of the essential characteristics of a controlling financial interest; (2) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support; or (3) the equity investors have voting rights that are not proportionate to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. The Company consolidates VIEs in which it is considered to be the primary beneficiary. The primary beneficiary is the entity that has both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the VIE’s performance; and (2) the obligation to absorb losses and right to receive the returns from the VIE that would be significant to the VIE. The Operating Partnership is a VIE and as such, substantially all of the consolidated balance sheet is a consolidated VIE. In addition, the Operating Partnership consolidates two collateralized loan obligation (“CLO”) VIEs with the following aggregate balance sheets ($ in thousands):



	September 30, 2019		December 31, 2018
	Notes 3 & 7		Notes 3 & 7

Mortgage loan receivables held for investment, net, at amortized cost	$	274,149	$	710,502
Accrued interest receivable	1,363		3,921
Other assets(1)	—		81,390
Total assets	$	275,512	$	795,813

Senior and unsecured debt obligations	$	117,760	$	607,440
Accrued expenses	306		1,471
Other liabilities	2		2
Total liabilities	118,068		608,913

Net equity in VIEs (eliminated in consolidation)	157,444		186,900
Total equity	157,444		186,900

Total liabilities and equity	$	275,512	$	795,813

(1)

Primarily consists of loan repayments in transit as of December 31, 2018.

EQUITY STRUCTURE AND ACCOUNTS

9 Months Ended

Sep. 30, 2019

Equity [Abstract]

EQUITY STRUCTURE AND ACCOUNTS

11. EQUITY STRUCTURE AND ACCOUNTS

The Company has two classes of common stock, Class A and Class B, which are described as follows:

Class A Common Stock

Voting Rights

Holders of shares of Class A common stock are entitled to one vote per share on all matters to be voted upon by the shareholders. The holders of Class A common stock do not have cumulative voting rights in the election of directors.

Dividend Rights

Subject to the rights of the holders of any preferred stock that may be outstanding and any contractual or statutory restrictions, holders of Class A common stock are entitled to receive equally and ratably, share for share, dividends as may be declared by the board of directors out of funds legally available to pay dividends. Dividends upon Class A common stock may be declared by the board of directors at any regular or special meeting and may be paid in cash, in property, or in shares of capital stock. Before payment of any dividend, there may be set aside out of any funds available for dividends, such sums as the board of directors deems proper as reserves to meet contingencies, or for equalizing dividends, or for repairing or maintaining any of the Company’s property, or for any proper purpose, and the board of directors may modify or abolish any such reserve.

Liquidation Rights

Upon liquidation, dissolution, distribution of assets or other winding up, the holders of Class A common stock are entitled to receive ratably the assets available for distribution to the shareholders after payment of liabilities and the liquidation preference of any outstanding shares of preferred stock.

Other Matters

The shares of Class A common stock have no preemptive or conversion rights and are not subject to further calls or assessment by the Company. There are no redemption or sinking fund provisions applicable to the Class A common stock. All outstanding shares of Class A common stock are fully paid and non-assessable.

Allocation of Income and Loss

Income and losses are allocated among the shareholders based upon the number of shares outstanding.

Class B Common Stock

Voting Rights

Holders of shares of Class B common stock are entitled to one vote for each share held of record by such holder and all matters submitted to a vote of shareholders. Holders of shares of our Class A common stock and Class B common stock vote together as a single class on all matters presented to our shareholders for their vote or approval, except as otherwise required by applicable law.

No Dividend or Liquidation Rights

Holders of Class B common stock do not have any right to receive dividends or to receive a distribution upon a liquidation or winding up of Ladder Capital Corp.

Exchange for Class A Common Stock

Pursuant to the Third Amended and Restated LLLP Agreement of LCFH, the Continuing LCFH Limited Partners may from time to time, subject to certain conditions, receive one share of the Company’s Class A common stock in exchange for (i) one share of the Company’s Class B common stock, (ii) one Series REIT LP Unit and (iii) either one Series TRS LP Unit or one TRS Share, subject to equitable adjustments for stock splits, stock dividends and reclassifications.

During the nine months ended September 30, 2019, 1,140,000 Series REIT LP Units and 1,140,000 Series TRS LP Units were collectively exchanged for 1,140,000 shares of Class A common stock and 1,140,000 shares of Class B common stock were canceled. We received no other consideration in connection with these exchanges.

During the nine months ended September 30, 2018, 4,549,832 Series REIT LP Units and 4,549,832 Series TRS LP Units were collectively exchanged for 4,549,832 shares of Class A common stock; and 4,549,832 shares of Class B common stock were canceled. We received no other consideration in connection with these exchanges.

Stock Repurchases

On October 30, 2014, the board of directors authorized the Company to repurchase up to $50.0 million of the Company’s Class A common stock from time to time without further approval. Stock repurchases by the Company are generally made for cash in open market transactions at prevailing market prices but may also be made in privately negotiated transactions or otherwise. The timing and amount of purchases are determined based upon prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. During the nine months ended September 30, 2019, the Company repurchased 40,065 shares of Class A common stock. As of September 30, 2019, the Company has a remaining amount available for repurchase of $41.1 million, which represents 2.2% in the aggregate of its outstanding Class A common stock, based on the closing price of $17.27 per share on such date.

The following table is a summary of the Company’s repurchase activity of its Class A common stock during the nine months ended September 30, 2019 and 2018 ($ in thousands):



	Shares	Amount(1)

Authorizations remaining as of December 31, 2018		$	41,769
Additional authorizations		—
Repurchases paid	40,065	(637		)
Repurchases unsettled		—
Authorizations remaining as of September 30, 2019		$	41,132

(1) Amount excludes commissions paid associated with share repurchases.



	Shares	Amount(1)

Authorizations remaining as of December 31, 2017		$	41,769
Additional authorizations		—
Repurchases paid	—	—
Repurchases unsettled		—
Authorizations remaining as of September 30, 2018		$	41,769

(1) Amount excludes commissions paid associated with share repurchases.

Dividends

In order for the Company to maintain its qualification as a REIT under the Code, it must annually distribute at least 90% of its taxable income. The Company has paid and in the future intends to declare regular quarterly distributions to its shareholders in an amount approximating the REIT’s net taxable income.

Consistent with IRS guidance, the Company may, subject to a cash/stock election by its shareholders, pay a portion of its dividends in stock, to provide for meaningful capital retention; however, the REIT distribution requirements limit its ability to retain earnings and thereby replenish or increase capital for operations. The timing and amount of future distributions is based on a number of factors, including, among other things, the Company’s future operations and earnings, capital requirements and surplus, general financial condition and contractual restrictions. All dividend declarations are subject to the approval of the Company’s board of directors. Generally, the Company expects its distributions to be taxable as ordinary dividends to its shareholders, whether paid in cash or a combination of cash and common stock, and not as a tax-free return of capital or a capital gain (although for taxable years beginning after December 31, 2017 and before January 1, 2026, generally stockholders that are individuals, trusts or estates may deduct 20% of the aggregate amount of ordinary dividends distributed by us, subject to certain limitations). The Company believes that its significant capital resources and access to financing will provide the financial flexibility at levels sufficient to meet current and anticipated capital requirements, including funding new investment opportunities, paying distributions to its shareholders and servicing our debt obligations.

The following table presents dividends declared (on a per share basis) of Class A common stock for the nine months ended September 30, 2019 and 2018:



Declaration Date	Dividend per Share

February 27, 2019	$	0.340
May 30, 2019	0.340
August 22, 2019	0.340
Total	$	1.020

February 27, 2018	$	0.315
May 30, 2018	0.325
September 5, 2018	0.325
Total	$	0.965

Changes in Accumulated Other Comprehensive Income

The following table presents changes in accumulated other comprehensive income related to the cumulative difference between the fair market value and the amortized cost basis of securities classified as available for sale for the nine months ended September 30, 2019 and 2018 ($ in thousands):



	Accumulated Other Comprehensive Income (Loss)			Accumulated Other Comprehensive Income (Loss) of Noncontrolling Interests			Total Accumulated Other Comprehensive Income (Loss)

December 31, 2018	$	(4,649	)	$	(588	)	$	(5,237	)
Other comprehensive income (loss)	14,935			1,840			16,775
Exchange of noncontrolling interest for common stock	64			(64		)	—
Rebalancing of ownership percentage between Company and Operating Partnership	17			(17		)	—
September 30, 2019	$	10,367		$	1,171		$	11,538



	Accumulated Other Comprehensive Income (Loss)			Accumulated Other Comprehensive Income (Loss) of Noncontrolling Interests			Total Accumulated Other Comprehensive Income (Loss)

December 31, 2017	$	(212	)	$	116		$	(96	)
Other comprehensive income (loss)	(8,230		)	(1,428		)	(9,658		)
Exchange of noncontrolling interest for common stock	(167		)	167			—
Rebalancing of ownership percentage between Company and Operating Partnership	27			(27		)	—
September 30, 2018	$	(8,582	)	$	(1,172	)	$	(9,754	)

NONCONTROLLING INTERESTS	9 Months Ended
NONCONTROLLING INTERESTS	Sep. 30, 2019
Noncontrolling Interest [Abstract]
NONCONTROLLING INTERESTS	12. NONCONTROLLING INTERESTS There are two main types of noncontrolling interest reflected in the Company’s consolidated financial statements (i) noncontrolling interest in the operating partnership and (ii) noncontrolling interest in consolidated joint ventures. Noncontrolling Interest in the Operating Partnership As more fully described in Note 1, certain of the predecessor equity owners continue to own interests in the Operating Partnership as modified by the IPO Transactions. These interests were subsequently further modified by the REIT Structuring Transactions (also described in Note 1). These interests, along with the Class B shares held by these investors, are exchangeable for Class A shares of the Company. The roll-forward of the Operating Partnership’s LP Units follow the Class B common stock of the Company as disclosed in the consolidated statements of changes in equity. Pursuant to ASC 810, Consolidation, on the accounting and reporting for noncontrolling interests and changes in ownership interests of a subsidiary, changes in a parent’s ownership interest (and transactions with noncontrolling interest unitholders in the subsidiary), while the parent retains its controlling interest in its subsidiary, should be accounted for as equity transactions. The carrying amount of the noncontrolling interest shall be adjusted to reflect the change in its ownership interest in the subsidiary, with the offset to equity attributable to the parent. Accordingly, as a result of Continuing LCFH Limited Partners exchanges which caused changes in ownership percentages between the Company’s Class A shareholders and the noncontrolling interests in the Operating Partnership that occurred during the nine months ended September 30, 2019, the Company has increased noncontrolling interests in the Operating Partnership and decreased additional paid-in capital and accumulated other comprehensive income in the Company’s shareholders’ equity by $0.1 million as of September 30, 2019. Distributions to Noncontrolling Interest in the Operating Partnership Notwithstanding the foregoing, subject to any restrictions in applicable debt financing agreements and available liquidity as determined by the board of directors of each of Series REIT of LCFH and Series TRS of LCFH, each Series must use commercially reasonable efforts to make quarterly distributions to each of its partners (including the Company) at least equal to such partner’s “Quarterly Estimated Tax Amount,” which shall be computed (as more fully described in LCFH’s Third Amended and Restated LLLP Agreement) for each partner as the product of (x) the U.S. federal taxable income (or alternative minimum taxable income, if higher) allocated by such Series to such partner in respect of the Series REIT LP Units and Series TRS LP Units held by such partner and (y) the highest marginal blended U.S. federal, state and local income tax rate (or alternative minimum taxable rate, as applicable) applicable to an individual residing in New York, NY, taking into account, for U.S. federal income tax purposes, the deductibility of state and local taxes; provided that Series TRS of LCFH may take into account, in determining the amount of tax distributions to holders of Series TRS LP Units, the amount of any distributions each such holder received from Series REIT of LCFH in excess of tax distributions. In addition, to the extent the Company requires an additional distribution from the Series of LCFH in excess of its quarterly tax distribution in order to pay its quarterly cash dividend, the Series of LCFH will be required to make a corresponding distribution of cash to each of their partners (other than the Company) on a pro-rata basis. Allocation of Income and Loss Income and losses and comprehensive income are allocated among the partners in a manner to reflect as closely as possible the amount each partner would be distributed under the Third Amended and Restated LLLP Agreement of LCFH upon liquidation of the Operating Partnership’s assets. Noncontrolling Interest in Consolidated Joint Ventures As of September 30, 2019, the Company consolidates seven ventures in which there are other noncontrolling investors, which own between 1.2% - 29.4% of such ventures. These ventures hold investments in a 40 property student housing portfolio, 20 office buildings, one industrial property, one condominium complex and one apartment complex. The Company makes distributions and allocates income from these ventures to the noncontrolling interests in accordance with the terms of the respective governing agreements.

EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

EARNINGS PER SHARE

13. EARNINGS PER SHARE

The Company’s net income (loss) and weighted average shares outstanding for the three and nine months ended September 30, 2019 and 2018 consist of the following:



	Three Months Ended September 30,				Nine Months Ended September 30,
($ in thousands except share amounts)	2019		2018		2019		2018

Basic Net income (loss) available for Class A common shareholders	$	27,576	$	66,630	$	81,996	$	155,911
Diluted Net income (loss) available for Class A common shareholders	$	27,576	$	74,038	$	81,996	$	177,875
Weighted average shares outstanding
Basic	106,004,152		96,935,986		105,264,752		96,317,513
Diluted	106,603,713		110,650,253		106,232,581		110,482,991

The calculation of basic and diluted net income (loss) per share amounts for the three and nine months ended September 30, 2019 and 2018 are described and presented below.

Basic Net Income (Loss) per Share

Numerator: utilizes net income (loss) available for Class A common shareholders for the three and nine months ended September 30, 2019 and 2018, respectively.

Denominator: utilizes the weighted average shares of Class A common stock for the three and nine months ended September 30, 2019 and 2018, respectively.

Diluted Net Income (Loss) per Share

Numerator: utilizes net income (loss) available for Class A common shareholders for the three and nine months ended September 30, 2019 and 2018, respectively, for the basic net income (loss) per share calculation described above, adding net income (loss) amounts attributable to the noncontrolling interest in the Operating Partnership using the as-if converted method for the Class B common shareholders while adjusting for additional corporate income tax expense (benefit) for the described net income (loss) add-back.

Denominator: utilizes the weighted average number of shares of Class A common stock for the three and nine months ended September 30, 2019 and 2018, respectively, for the basic net income (loss) per share calculation described above adding the dilutive effect of shares issuable relating to Operating Partnership exchangeable interests and the incremental shares of unvested Class A restricted stock using the treasury method.



	Three Months Ended September 30,					Nine Months Ended September 30,
(In thousands except share amounts)	2019		2018			2019		2018

Basic Net Income (Loss) Per Share of Class A Common Stock
Numerator:
Net income (loss) attributable to Class A common shareholders	$	27,576	$	66,630		$	81,996	$	155,911
Denominator:
Weighted average number of shares of Class A common stock outstanding	106,004,152		96,935,986			105,264,752		96,317,513
Basic net income (loss) per share of Class A common stock	$	0.26	$	0.69		$	0.78	$	1.62

Diluted Net Income (Loss) Per Share of Class A Common Stock
Numerator:
Net income (loss) attributable to Class A common shareholders	$	27,576	$	66,630		$	81,996	$	155,911
Add (deduct) - dilutive effect of:
Amounts attributable to operating partnership’s share of Ladder Capital Corp net income (loss)	—		8,991			—		22,786
Additional corporate tax (expense) benefit	—		(1,583		)	—		(822		)
Diluted net income (loss) attributable to Class A common shareholders	27,576		74,038			81,996		177,875
Denominator:
Basic weighted average number of shares of Class A common stock outstanding	106,004,152		96,935,986			105,264,752		96,317,513
Add - dilutive effect of:
Shares issuable relating to converted Class B common shareholders	—		13,202,202			—		13,800,597
Incremental shares of unvested Class A restricted stock	599,561		512,065			967,829		364,881
Diluted weighted average number of shares of Class A common stock outstanding	106,603,713		110,650,253			106,232,581		110,482,991
Diluted net income (loss) per share of Class A common stock	$	0.26	$	0.67		$	0.77	$	1.61


(1)	For three and nine months ended September 30, 2019, shares issuable relating to converted Class B common shareholders are excluded from the calculation of diluted EPS as the inclusion of such potential common shares in the calculation would be anti-dilutive.

The shares of Class B common stock do not share in the earnings of Ladder Capital Corp and are, therefore, not participating securities. Accordingly, basic and diluted net income (loss) per share of Class B common stock has not been presented, although the assumed conversion of Class B common stock has been included in the presented diluted net income (loss) per share of Class A common stock.

STOCK BASED AND OTHER COMPENSATION PLANS

9 Months Ended

Sep. 30, 2019

Share-based Payment Arrangement [Abstract]

STOCK BASED AND OTHER COMPENSATION PLANS

14. STOCK BASED AND OTHER COMPENSATION PLANS

The following table summarizes the impact on the consolidated statement of operations of the various stock based compensation plans described in this note ($ in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018

Stock Based Compensation Expense:
Annual Incentive Awards Granted in 2015 with Respect to 2014 Performance	$	—	$	—	$	—	$	172
Annual Incentive Awards Granted in 2016 with Respect to 2015 Performance	—		323		131		971
Annual Incentive Awards Granted in 2017 with Respect to 2016 Performance(1)	280		524		955		1,655
Other 2017 Restricted Stock Awards(1)	25		76		102		257
Annual Incentive Awards Granted in 2017 with Respect to 2017 Performance(1)	596		1,122		1,961		3,325
2018 Restricted Stock Awards	—		95		32		230
Other 2018 Restricted Stock Awards(1)	11		9		31		12
Annual Incentive Awards Granted in 2019 with Respect to 2018 Performance(1)	2,509		—		14,804		—
2019 Restricted Stock Awards	148		—		297		—
Other Employee/Director Awards	6		13		23		45
Total Stock Based Compensation Expense	$	3,575	$	2,162	$	18,336	$	6,667

Phantom Equity Investment Plan	$	343	$	—	$	1,047	$	—
Ladder Capital Corp Deferred Compensation Plan	$	—	$	601	$	—	$	1,519
Bonus Expense	$	6,533	$	9,210	$	21,035	$	26,772


(1)	Includes immediate vesting of retirement eligible employees, including Brian Harris, our Chief Executive Officer.

Summary of Restricted Stock and Stock and Shares/Options Nonvested/Outstanding

A summary of the grants is presented below:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
	Number of Shares/Options	Weighted Average Fair Value Per Share		Number of Shares	Weighted Average Fair Value Per Share		Number of Shares/Options	Weighted Average Fair Value Per Share		Number of Shares/Options	Weighted Average Fair Value Per Share

Grants - Class A Common Stock (restricted)	23,443	$	16.58	4,720	$	15.89	1,569,694	$	17.54	33,656	$	14.86
Grants - Class A Common Stock (restricted) dividends	—	—		—	—		11,113	16.61		—	—
Stock Options	—	—		—	—		12,073	—		—	—

The table below presents the number of unvested shares and outstanding stock options at September 30, 2019 and changes during 2019 of the Class A Common stock and Stock Options of Ladder Capital Corp granted under the 2014 Omnibus Incentive Plan:



	Restricted Stock		Stock Options

Nonvested/Outstanding at December 31, 2018	1,118,194		982,135
Granted	1,580,807		12,073
Exercised			—
Vested	(1,122,107	)
Forfeited	(8,702	)	—
Expired			—
Nonvested/Outstanding at September 30, 2019	1,568,192		994,208

Exercisable at September 30, 2019			994,208

At September 30, 2019 there was $14.8 million of total unrecognized compensation cost related to certain share-based compensation awards that is expected to be recognized over a period of up to 34 months, with a weighted-average remaining vesting period of 25.8 months.

The table below presents the number of unvested shares and outstanding stock options at September 30, 2018 and changes during 2018 of the Class A Common stock and Stock Options of Ladder Capital Corp granted under the 2014 Omnibus Incentive Plan:



	Restricted Stock		Stock Options

Nonvested/Outstanding at December 31, 2017	1,252,365		982,135
Granted	33,656		—
Exercised			—
Vested	(138,216	)
Forfeited	(26,061	)	—
Expired			—
Nonvested/Outstanding at September 30, 2018	1,121,744		982,135

Exercisable at September 30, 2018			929,701

As of September 30, 2018 there was $8.0 million of total unrecognized compensation cost related to certain share-based compensation awards that is expected to be recognized over a period of up to 34 months, with a weighted-average remaining vesting period of 21.2 months.

2014 Omnibus Incentive Plan

In connection with the IPO Transactions, the 2014 Ladder Capital Corp Omnibus Incentive Equity Plan (the “2014 Omnibus Incentive Plan”) was adopted by the board of directors on February 11, 2014, and provides certain members of management, employees and directors of the Company or its affiliates with additional incentives including grants of stock options, stock appreciation rights, restricted stock, other stock-based awards and other cash-based awards.

Annual Incentive Awards Granted in 2017 with Respect to 2016 Performance

For 2016 performance, management received stock-based incentive equity (the “Annual Restricted Stock Awards”). On February 18, 2017, Annual Restricted Stock Awards were granted to Management Grantees with an aggregate value of $10.2 million which represents 736,461 shares of restricted Class A common stock in connection with 2016 compensation. In accordance with the Harris Employment Agreement, Mr. Harris’ annual awards were fully vested at grant. For other Management Grantees, 50% of each restricted stock award granted is subject to time-based vesting criteria, and the remaining 50% of each restricted stock award is subject to attainment of the Performance Target for the applicable years. The time-vesting restricted stock will vest in three installments on each of the first three anniversaries of the date of grant, subject to continued employment on the applicable vesting dates and subject to the applicable Retirement Eligibility Date. The performance-vesting restricted stock will vest in three equal installments upon the compensation committee’s confirmation that the Company achieves a return on equity, based on core earnings divided by the Company’s average book value of equity, equal to or greater than 8% for such year (the “Performance Target”) for those years. If the Company misses the Performance Target during either the first or second calendar year but meets the Performance Target for a subsequent year during the 3 year performance period and the Company’s return on equity for such subsequent year and any years for which it missed its Performance Target equals or exceeds the compounded return on equity of 8%, based on core earnings divided by the Company’s average book value of equity, the performance-vesting restricted stock which failed to vest because the Company previously missed its Performance Target will vest on the last day of such subsequent year (the “Catch-Up Provision”). If the term “core earnings” is no longer used in the Company’s SEC filings and approved by the compensation committee, then the Performance Target will be calculated using such other pre-tax performance measurement defined in the Company’s SEC filings, as determined by the compensation committee. The Company met the Performance Target for the years ended December 31, 2018 and 2017.

The Company has elected to recognize the compensation expense related to the time-based vesting of the Annual Restricted Stock Awards for the entire award on a straight-line basis over the requisite service period for the entire award. As such, the compensation expense related to the February 18, 2017 Annual Restricted Stock Awards to Management Grantees shall be recognized as follows:


1.	Compensation expense for stock granted to Brian Harris will be expensed immediately in accordance with the Harris Retirement Eligibility Date.


2.	Compensation expense for restricted stock subject to time-based vesting criteria granted to Pamela McCormack will be expensed 1/3 each year, for three years, on an annual basis in advance of the McCormack Retirement Eligibility Date.


3.	Compensation expense for restricted stock subject to time-based vesting criteria granted to Michael Mazzei will be expensed 1/3 each year, for three years, on an annual basis.


4.	Compensation expense for restricted stock subject to time-based vesting criteria granted to the Management Grantees other than Mr. Harris, Ms. McCormack and Mr. Mazzei will be expensed 1/3 each year, for three years, on an annual basis in advance of the Executive Retirement Eligibility Date.

Accruals of compensation cost for an award with a performance condition is accrued if it is probable that the performance condition will be achieved and shall not be accrued if it is not probable that the performance condition will be achieved.

Upon a change in control (as defined in the respective award agreements), all restricted stock and option awards will become fully vested, if (1) the Management Grantee continues to be employed through the closing of the change in control or (2) after the signing of definitive documentation related to the change in control, but prior to its closing, the Management Grantee’s employment is terminated without cause or due to death or disability or the Management Grantee resigns for Good Reason. The compensation committee retains the right, in its sole discretion, to provide for the accelerated vesting (in whole or in part) of the restricted stock and option awards granted.

On February 11, 2017 (the “Harris Retirement Eligibility Date”), all outstanding Annual Restricted Stock Awards, including the time-vesting portion and the performance-vesting portion, and all outstanding Annual Option Awards granted to Mr. Harris became fully vested, and any Annual Restricted Stock Awards and Annual Option Awards granted after the Harris Retirement Eligibility Date will be fully vested at grant. The Executive Retirement Eligibility Date for Pamela McCormack is December 8, 2019 (the “McCormack Retirement Eligibility Date”). For Management Grantees other than Harris and McCormack, the Executive Retirement Eligibility Date is February 11, 2019, when the time-vesting portion of the Annual Restricted Stock Awards and the Annual Option Awards will become fully vested, and the time-vesting portion of any Annual Restricted Stock Awards and Annual Option Awards granted after the Executive Retirement Eligibility Date will be fully vested at grant. Upon the occurrence of the respective Executive Retirement Eligibility Dates for each of the Management Grantees except Mr. Harris, the performance-vesting portion of such Management Grantee’s Annual Restricted Stock Awards will remain outstanding for the performance period and will vest to the extent we meet the Performance Target, including via the Catch-Up Provision described above, regardless of continued employment with our subsidiaries following the Executive Retirement Eligibility Date.

Other 2017 Restricted Stock Awards

On January 24, 2017, Management Grantees received a Restricted Stock Award with a grant date fair value of $30,455, representing 2,191 shares of restricted Class A common stock. These shares represent stock dividends paid on the number of shares subject to the 2016 options (had such shares been outstanding) and vest with the time-vesting 2016 options they are associated with, subject to the Retirement Eligibility Date of the respective member of management. Compensation expense shall be recognized on a straight-line basis over the requisite service period.

On February 18, 2017, a new employee of the Company received a Restricted Stock Award with a grant date fair value of $0.4 million, representing 28,881 shares of restricted Class A common stock, which vested in two equal installments on each of the first two anniversaries of the date of grant, subject to continued employment on the applicable vesting dates. Compensation expense was recognized on a straight-line basis over the requisite service period.

On February 18, 2017, Management Grantees received cash of $1.0 million and a Stock Award with a grant date fair value of $48,475, representing 3,500 shares of Class A common stock, intended to represent dividends in type and amount that the 2015 stock option grant to management would have received had such options had dividend equivalent rights since grant. This grant also provides for future dividend equivalents that vest according to the vesting schedule of the 2015 stock option grant. Compensation expense shall be recognized on a straight-line basis over the requisite service period.

On February 18, 2017, certain members of the board of directors each received Annual Restricted Stock Awards with a grant date fair value of $0.2 million, representing 16,245 shares of restricted Class A common stock, which vested in full on the first anniversary of the date of grant, subject to continued service on the board of directors. Compensation expense related to the time-based vesting criteria of the award was recognized on a straight-line basis over the one year vesting period.

On February 18, 2017, Restricted Stock Awards were granted to certain non-management employees (each, a “Non-Management Grantee”) with an aggregate value of $0.6 million which represents 40,000 shares of restricted Class A common stock in connection with 2016 compensation. Fifty percent of each Restricted Stock Award granted is subject to time-based vesting criteria, and the remaining 50% of each Restricted Stock Award is subject to attainment of the Performance Target for the applicable years. The time-vesting restricted stock granted to Non-Management Grantees will vest in three installments on each of the first three anniversaries of June 1, 2017, subject to continued employment on the applicable vesting dates. The performance-vesting restricted stock will vest in three equal installments on June 1 of each of 2018, 2019 and 2020 (subject to the performance target being achieved). The Catch-Up Provision applies to the performance vesting portion of this award. The Company has elected to recognize the compensation expense related to the time-based vesting criteria of these Restricted Stock Awards for the entire award on a straight-line basis over the requisite service period. As such, the compensation expense related to the February 18, 2017 Restricted Stock Awards to Non-Management Grantees for time-based vesting shall be recognized 1/3 for the period February 18, 2017 through June 1, 2018, 1/3 for the period June 2, 2018 through June 1, 2019 and 1/3 for the period June 2, 2019 through June 1, 2020.

Accruals of compensation cost for an award with a performance condition shall be based on the probable outcome of that performance condition. Therefore, compensation cost shall be accrued if it is probable that the performance condition will be achieved and shall not be accrued if it is not probable that the performance condition will be achieved.

On March 3, 2017, a new member of the board of directors received a Restricted Stock Award with a grant date fair value of $0.1 million, representing 5,130 shares of restricted Class A common stock, which was scheduled to vest in three equal installments on each of the first three anniversaries of the date of grant, subject to continued service on the board of directors. Compensation expense for restricted stock subject to time-based vesting criteria granted to the director will be expensed 1/3 each year, for three years on an annual basis following such grant.

On June 19, 2017, Restricted Stock Awards were granted to a Non-Management Grantee with an aggregate value of $0.3 million, which represents 21,307 shares of time-based restricted Class A common stock. One-third of this amount will vest on the first anniversary date of the grant date and 1,775 shares will vest on each of October 1, 2018, December 31, 2018, April 1, 2019, July 1, 2019, September 30, 2019, December 31, 2019 and March 31, 2020. The remaining 1,780 shares of the grant will vest on July 1, 2020, subject to the Non-Management Grantee’s continued employment with the Company. The Company has elected to recognize the compensation expense related to the time-based vesting criteria of this Restricted Stock Award for the entire award on a straight-line basis over the requisite service period.

In connection with Mr. Mazzei’s retirement as President, Ladder Capital Finance LLC, a subsidiary of Ladder, and Mr. Mazzei entered into a separation agreement, dated June 22, 2017 (the “Separation Agreement”). Pursuant to the Separation Agreement, Mr. Mazzei was appointed as a Class III director of Ladder and, subject to certain exceptions, Mr. Mazzei’s unvested stock and stock options will continue to vest as they would have had he continued to be employed with Ladder as long as he continues to serve on the Board of Directors. Such unvested stock and stock options will not be subject to the original retirement eligibility date provided for in his employment agreement. On June 22, 2017, in connection with his appointment to the board of directors, Mr. Mazzei received a Restricted Stock Award with a grant date fair value of $0.1 million, representing 5,346 shares of restricted Class A common stock, which will vest in three equal installments on each of the first three anniversaries of the date of grant, subject to continued service on the board of directors. Compensation expense for restricted stock subject to time-based vesting criteria granted to the director will be expensed 1/3 each year, for three years on an annual basis following such grant.

Annual Incentive Awards Granted in 2017 with Respect to 2017 Performance

For 2017 performance, management received stock-based incentive equity. On December 21, 2017, Annual Restricted Stock Awards were granted to Management Grantees with an aggregate value of $10.5 million which represents 768,205 shares of restricted Class A common stock in connection with 2017 compensation. In accordance with the Harris Employment Agreement, Mr. Harris’ annual awards were fully vested at grant. For other Management Grantees, 50% of each restricted stock award granted is subject to time-based vesting criteria, and the remaining 50% of each restricted stock award is subject to attainment of the Performance Target for the applicable years. The time-vesting restricted stock will vest in three installments on each of February 18, 2019, February 18, 2020 and February 18, 2021, subject to continued employment on the applicable vesting dates and subject to the applicable Retirement Eligibility Date. The performance-vesting restricted stock will vest in three equal installments upon the compensation committee’s confirmation that the Company achieves the Performance Target for the years ended December 31, 2018, 2019 and 2020, respectively. The Catch-Up Provision applies to the performance vesting portion of this award.

The Company has elected to recognize the compensation expense related to the time-based vesting of the Annual Restricted Stock Awards for the entire award on a straight-line basis over the requisite service period for the entire award. As such, the compensation expense related to the December 21, 2017 Annual Restricted Stock Awards to Management Grantees shall be recognized as follows:


1.	Compensation expense for stock granted to Brian Harris will be expensed immediately in accordance with the Harris Retirement Eligibility Date.


2.	Compensation expense for restricted stock subject to time-based vesting criteria granted to Pamela McCormack will be expensed 1/3 each year, for three years, on an annual basis in advance of the McCormack Retirement Eligibility Date.


3.	Compensation expense for restricted stock subject to time-based vesting criteria granted to the Management Grantees other than Mr. Harris and Ms. McCormack will be expensed 1/3 each year, for three years, on an annual basis in advance of the Executive Retirement Eligibility Date.

Compensation cost for an award with a performance condition is accrued if it is probable that the performance condition will be achieved and shall not be accrued if it is not probable that the performance condition will be achieved.

Upon a change in control (as defined in the respective award agreements), all restricted stock awards will become fully vested, if (1) the Management Grantee continues to be employed through the closing of the change in control or (2) after the signing of definitive documentation related to the change in control, but prior to its closing, the Management Grantee’s employment is terminated without cause or due to death or disability or the Management Grantee resigns for Good Reason. The compensation committee retains the right, in its sole discretion, to provide for the accelerated vesting (in whole or in part) of the restricted stock and option awards granted.

On December 21, 2017, Restricted Stock Awards were granted to certain non-management employees (each, a “Non-Management Grantee”) with an aggregate value of $5.0 million which represents 369,328 shares of restricted Class A common stock in connection with 2017 compensation. Fifty percent of each Restricted Stock Award granted is subject to time-based vesting criteria, and the remaining 50% of each Restricted Stock Award is subject to attainment of the Performance Target for the applicable years. The time-vesting restricted stock granted to Non-Management Grantees will vest in three installments on February 18 of each of 2019, 2020 and 2021 subject to continued employment on the applicable vesting dates. The performance-vesting restricted stock will vest in three equal installments upon the compensation committee’s confirmation that the Company achieves the Performance Target for the years ended December 31, 2018, 2019 and 2020, respectively. The Catch-Up Provision applies to the performance vesting portion of this award. The Company has elected to recognize the compensation expense related to the time-based vesting criteria of these Restricted Stock Awards for the entire award on a straight-line basis over the requisite service period. As such, the compensation expense related to the December 21, 2017 Restricted Stock Awards to Non-Management Grantees shall be recognized 1/3 for the period December 21, 2017 through February 18, 2019, 1/3 for the period February 19, 2019 through February 18, 2020 and 1/3 for the period February 19, 2020 through February 18, 2021.

In the event a Non-Management Grantee is terminated by the Company without cause within six months of certain changes in control, all unvested time shares shall vest on the termination date and all unvested performance shares shall remain outstanding and be eligible to vest (and be forfeited) in accordance with the performance conditions; provided that if such change in control is for more than 50% of the shares of the Company, then all restricted stock awards will become fully vested if the Non-Management Grantee continues to be employed through the closing of the change in control.

Accruals of compensation cost for an award with a performance condition shall be based on the probable outcome of that performance condition. Therefore, compensation cost shall be accrued if it is probable that the performance condition will be achieved and shall not be accrued if it is not probable that the performance condition will be achieved.

2018 Restricted Stock Awards

On February 18, 2018, certain members of the board of directors each received Annual Restricted Stock Awards with a grant date fair value of $0.4 million, representing 25,370 shares of restricted Class A common stock, which vested in full on the first anniversary of the date of grant, subject to continued service on the board of directors. Compensation expense related to the time-based vesting criteria of the award was recognized on a straight-line basis over the one year vesting period.

Other 2018 Restricted Stock Awards

On April 23, 2018, a new employee of the Company received a Restricted Stock Award with a grant date fair value of $0.1 million, representing 3,566 shares of restricted Class A common stock, which will vest in three equal installments on each of the first three anniversaries of the date of grant, subject to continued employment on the applicable vesting dates. Compensation expense shall be recognized on a straight-line basis over the requisite service period.

On July 19, 2018, a new member of the board of directors received a Restricted Stock Award with a grant date fair value of $0.1 million, representing 4,720 shares of restricted Class A common stock, which will vest in three equal installments on each of the first three anniversaries of the date of grant, subject to continued service on the board of directors. Compensation expense for restricted stock subject to time-based vesting criteria granted to the director will be expensed 1/3 each year, for three years on an annual basis following such grant.

Annual Incentive Awards Granted in 2019 with Respect to 2018 Performance

For 2018 performance, management received stock-based incentive equity. On February 18, 2019, Annual Restricted Stock Awards were granted to Management Grantees with an aggregate value of $11.7 million which represents 666,288 shares of restricted Class A common stock in connection with 2018 compensation. In accordance with the Harris Employment Agreement, Mr. Harris’ annual awards were fully vested at grant. Having attained their Executive Retirement Eligibility Date, fifty percent of the annual awards (representing the portion of the Annual Restricted Stock Awards historically subject to time-based vesting) to Messrs. Fox, Harney, and Perelman was fully vested at grant and the remaining fifty percent of each of their Annual Restricted Stock Awards is subject to performance-based criteria. For Ms. McCormack, the vesting of her annual awards is the same as described for the Annual Restricted Stock Awards with respect to 2017 performance. Subject to the McCormack Retirement Eligibility Date, her time-vesting restricted stock will vest in three installments on each of February 18, 2020, February 18, 2021 and February 18, 2022, subject to continued employment on the applicable vesting dates and subject to the applicable Retirement Eligibility Date. The performance-vesting restricted stock for the Management Grantees other than Mr. Harris will vest in three equal installments upon the compensation committee’s confirmation that the Company achieves the Performance Target for the years ended December 31, 2019, 2020 and 2021, respectively. The Catch-Up Provision applies to the performance vesting portion of this award.

The Company has elected to recognize the compensation expense related to the time-based vesting of the Annual Restricted Stock Awards for the entire award on a straight-line basis over the requisite service period for the entire award. As such, the compensation expense related to the February 18, 2019 Annual Restricted Stock Awards to Management Grantees shall be recognized as follows:


1.	Compensation expense for stock granted to Brian Harris will be expensed immediately in accordance with the Harris Retirement Eligibility Date.


2.	Compensation expense for restricted stock subject to time-based vesting criteria granted to Pamela McCormack will be expensed 1/3 each year, for three years, on an annual basis in advance of the McCormack Retirement Eligibility Date.


3.	Having attained their Executive Retirement Eligibility Date, compensation expense for restricted stock subject to time-based vesting criteria granted to Messrs. Fox, Harney, and Perelman was fully vested at grant date.

Compensation cost for an award with a performance condition is accrued if it is probable that the performance condition will be achieved and shall not be accrued if it is not probable that the performance condition will be achieved.

Upon a change in control (as defined in the respective award agreements), all restricted stock awards will become fully vested, if (1) the Management Grantee continues to be employed through the closing of the change in control or (2) after the signing of definitive documentation related to the change in control, but prior to its closing, the Management Grantee’s employment is terminated without cause or due to death or disability or the Management Grantee resigns for Good Reason. The compensation committee retains the right, in its sole discretion, to provide for the accelerated vesting (in whole or in part) of the restricted stock and option awards granted.

On February 18, 2019, Restricted Stock Awards were granted to certain non-management employees (each, a “Non-Management Grantee”) with an aggregate value of $14.9 million which represents 849,087 shares of restricted Class A common stock in connection with 2018 compensation. Fifty percent of each Restricted Stock Award granted is subject to time-based vesting criteria, and the remaining 50% of each Restricted Stock Award is subject to attainment of the Performance Target for the applicable years. The time-vesting restricted stock granted to Non-Management Grantees will vest in three installments on February 18 of each of 2020, 2021 and 2022 subject to continued employment on the applicable vesting dates. The performance-vesting restricted stock will vest in three equal installments upon the compensation committee’s confirmation that the Company achieves the Performance Target for the years ended December 31, 2019, 2020 and 2021, respectively. The Catch-Up Provision applies to the performance vesting portion of this award. The Company has elected to recognize the compensation expense related to the time-based vesting criteria of these Restricted Stock Awards for the entire award on a straight-line basis over the requisite service period. As such, the compensation expense related to the February 18, 2019 Restricted Stock Awards to Non-Management Grantees shall be recognized 1/3 for the period February 18, 2019 through February 18, 2020, 1/3 for the period February 19, 2020 through February 18, 2021 and 1/3 for the period February 19, 2021 through February 18, 2022.

In the event a Non-Management Grantee is terminated by the Company without cause within six months of certain changes in control, all unvested time shares shall vest on the termination date and all unvested performance shares shall remain outstanding and be eligible to vest (and be forfeited) in accordance with the performance conditions; provided that if such change in control is for more than 50% of the shares of the Company, then all restricted stock awards will become fully vested if the Non-Management Grantee continues to be employed through the closing of the change in control.

Accruals of compensation cost for an award with a performance condition shall be based on the probable outcome of that performance condition. Therefore, compensation cost shall be accrued if it is probable that the performance condition will be achieved and shall not be accrued if it is not probable that the performance condition will be achieved.

2019 Restricted Stock Awards

On February 18, 2019, certain members of the board of directors each received Annual Restricted Stock Awards with a grant date fair value of $0.4 million, representing 25,626 shares of restricted Class A common stock, which will vest in full on the first anniversary of the date of grant, subject to continued service on the board of directors. Compensation expense related to the time-based vesting criteria of the award shall be recognized on a straight-line basis over the one year vesting period.

Other 2019 Restricted Stock Awards

On January 24, 2019, Management Grantees received a Restricted Stock Award with a grant date fair value of $11,328, representing 682 shares of restricted Class A common stock. These shares represent stock dividends paid on the number of shares subject to the 2016 options (had such shares been outstanding) and vest with the time-vesting 2016 options they are associated with, subject to the Retirement Eligibility Date of the respective member of management. Compensation expense shall be recognized on a straight-line basis over the requisite service period.

An equitable adjustment was also made to outstanding options in the first quarter of 2019 for the Company’s stock dividend paid on January 24, 2019. Those additional options are reflected in the summary of grants table above.

On June 4, 2019, a new member of the board of directors received a Restricted Stock Award with a grant date fair value of $0.1 million, representing 4,568 shares of restricted Class A common stock, which will vest in three equal installments on each of the first three anniversaries of the date of grant, subject to continued service on the board of directors. These shares of restricted Class A common stock were a re-issuance of treasury stock. Compensation expense for restricted stock subject to time-based vesting criteria granted to the director will be expensed 1/3 each year, for three years on an annual basis following such grant.

On July 1, 2019, a new employee of the Company received a Restricted Stock Award with a grant date fair value of $0.4 million, representing 24,125 shares of restricted Class A common stock. Fifty percent of this Restricted Stock Award granted is subject to time-based vesting criteria, and the remaining 50% of this Restricted Stock Award is subject to attainment of the Performance Target for the applicable years. The time-vesting restricted stock granted will vest in three installments on July 1 of each of 2020, 2021 and 2022 subject to continued employment on the applicable vesting dates. The performance-vesting restricted stock will vest in three equal installments on July 1 of each of 2020, 2021 and 2022 upon the Compensation Committee’s confirmation that the Company achieves the Performance Target for the years ended December 31, 2019, 2020 and 2021, respectively. The Catch-Up Provision applies to the performance vesting portion of this award. The Company has elected to recognize the compensation expense related to the time-based vesting criteria of these Restricted Stock Award on a straight-line basis over the requisite service period.

Ladder Capital Corp Deferred Compensation Plan

On July 3, 2014, the Company adopted a nonqualified deferred compensation plan, which was amended and restated on March 17, 2015 (the “2014 Deferred Compensation Plan”), in which certain eligible employees participate. On February 22, 2018, the Board of Directors froze the 2014 Deferred Compensation Plan. Pursuant to the 2014 Deferred Compensation Plan, participants elected, or in some cases non-management participants were required, to defer all or a portion of their annual cash performance-based bonuses into the 2014 Deferred Compensation Plan. Generally, if a participant’s total compensation was in excess of a certain threshold, a portion of a participant’s performance-based annual bonus was required to be deferred into the 2014 Deferred Compensation Plan. Otherwise, a portion of the participant’s annual bonus could have been deferred into the 2014 Deferred Compensation Plan at the election of the participant, so long as such elections were timely made in accordance with the terms and procedures of the 2014 Deferred Compensation Plan.

In the event that a participant elected to (or was required to) defer a portion of his or her compensation pursuant to the 2014 Deferred Compensation Plan, such amount was not paid to the participant and was instead credited to such participant’s notional account under the 2014 Deferred Compensation Plan. Such amounts were then invested on a phantom basis in Class A common stock of the Company, or the phantom units, and a participant’s account is credited with any dividends or other distributions received by holders of Class A common stock of the Company, which are subject to the same vesting and payment conditions as the applicable contributions. Elective contributions were immediately vested upon contribution. Mandatory contributions are subject to one-third vesting over three years on a straight-line basis following the applicable year in which the related compensation was earned and mandatory contributions for compensation earned in 2016 and 2017 remain in the 2014 Deferred Compensation Plan, subject to vesting in 2019 and 2020, respectively.

If a participant’s employment with the Company is terminated by the Company other than for cause and such termination is within six months following a change in control (each, as defined in the 2014 Deferred Compensation Plan), then the participant will fully vest in his or her unvested account balances. Furthermore, the unvested account balances will fully vest in the event of the participant’s death, disability, retirement (as defined in the 2014 Deferred Compensation Plan) or in the event of certain hostile takeovers of the board of directors of the Company. In the event that a participant’s employment is terminated by the Company other than for cause, the participant will vest in the portion of the participant’s account that would have vested had the participant remained employed through the end of the year in which such termination occurs, subject to, in such case or in the case of retirement, the participant’s timely execution of a general release of claims in favor of the Company. Unvested amounts are otherwise generally forfeited upon the participant’s resignation or termination of employment, and vested mandatory contributions are generally forfeited upon the participant’s termination for cause.

Amounts deferred into the 2014 Deferred Compensation Plan are paid upon the earliest to occur of (1) a change in control, (2) within sixty days following the end of the participant’s employment with the Company, or (3) the date of payment of the annual bonus payments following December 31 of the third calendar year following the applicable year to which the underlying deferred annual compensation relates. Payment is made in cash equal to the fair market value of the number of phantom units credited to a participant’s account, provided that, if the participant’s termination was by the Company for cause or was a voluntary resignation other than on account of such participant’s retirement, the amount paid is based on the lowest fair market value of a share of Class A common stock during the forty-five day period following such termination of employment. The amount of the final cash payment may be more or less than the amount initially deferred into the 2014 Deferred Compensation Plan, depending upon the change in the value of the Class A common stock of the Company during such period.

As of September 30, 2019, there are 260,200 phantom units outstanding in the 2014 Deferred Compensation Plan, of which 138,583 are unvested, resulting in a liability of $4.6 million, which is included in accrued expenses on the consolidated balance sheets. As of December 31, 2018, there were 380,662 phantom units outstanding in the 2014 Deferred Compensation Plan, of which 130,389 were unvested, resulting in a liability of $5.9 million, which is included in accrued expenses on the consolidated balance sheets.

Bonus Payments

On February 7, 2019, the board of directors of Ladder Capital Corp approved 2018 bonus payments to employees, including officers, totaling $61.4 million, which included $26.6 million of equity based compensation. The bonuses were accrued for as of December 31, 2018 and paid to employees in full on February 15, 2019. On December 19, 2017, the board of directors of Ladder Capital Corp approved 2017 bonus payments to employees, including officers, totaling $49.3 million, which included $15.5 million of equity based compensation, which was granted on December 21, 2017. Cash bonuses of $17.1 million were paid on December 29, 2017. The remaining $16.8 million of cash bonuses were accrued for as of December 31, 2017 and paid to employees in full on January 5, 2018. During the three and nine months ended September 30, 2019, the Company recorded compensation expense of $6.5 million and $21.0 million, respectively, related to bonuses. During the three and nine months ended September 30, 2018, the Company recorded compensation expense of $9.2 million and $26.8 million, respectively, related to bonuses.

FAIR VALUE OF FINANCIAL INSTRUMENTS

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

FAIR VALUE OF FINANCIAL INSTRUMENTS

15. FAIR VALUE OF FINANCIAL INSTRUMENTS

Fair value is based upon internal models, using market quotations, broker quotations, counterparty quotations or pricing services quotations, which provide valuation estimates based upon reasonable market order indications and are subject to significant variability based on market conditions, such as interest rates, credit spreads and market liquidity. The fair value of the mortgage loan receivables held for sale is based upon a securitization model utilizing market data from recent securitization spreads and pricing.

Fair Value Summary Table

The carrying values and estimated fair values of the Company’s financial instruments, which are both reported at fair value on a recurring basis (as indicated) or amortized cost/par, at September 30, 2019 and December 31, 2018 are as follows ($ in thousands):

September 30, 2019



											Weighted Average
	Outstanding Face Amount			Amortized Cost Basis/Purchase Price			Fair Value			Fair Value Method	Yield %		Remaining Maturity/Duration (years)
Assets:
CMBS(1)	$	1,779,458		$	1,780,233		$	1,788,712		Internal model, third-party inputs	3.14	%	2.38
CMBS interest-only(1)	2,139,357		(2)	39,961			41,440			Internal model, third-party inputs	3.65	%	2.61
GNMA interest-only(3)	113,096		(2)	2,202			2,026			Internal model, third-party inputs	9.65	%	2.73
Agency securities(1)	641			652			654			Internal model, third-party inputs	1.74	%	1.97
GNMA permanent securities(1)	31,760			31,984			32,795			Internal model, third-party inputs	3.27	%	4.55
Corporate bonds(1)	32,088			31,604			32,372			Internal model, third-party inputs	4.81	%	1.31
Equity securities(3)	N/A			13,720			13,457			Observable market prices	N/A		N/A
Mortgage loan receivables held for investment, net, at amortized cost:
Mortgage loan receivables held for investment, net, at amortized cost	3,249,711			3,231,443			3,249,383			Discounted Cash Flow(4)	7.29	%	1.37
Provision for loan losses	N/A			(18,500		)	(18,500		)	(5)	N/A		N/A
Mortgage loan receivables held for sale	173,957			174,214			182,716			Internal model, third-party inputs(6)	4.59	%	9.68
FHLB stock(7)	61,619			61,619			61,619			(7)	5.50	%	N/A
Nonhedge derivatives(1)(8)	6,000			N/A			22			Counterparty quotations	N/A		0.30

Liabilities:
Repurchase agreements - short-term	1,486,049			1,486,049			1,486,049			Discounted Cash Flow(9)	2.65	%	0.18
Repurchase agreements - long-term	299,999			299,999			299,999			Discounted Cash Flow(10)	3.20	%	1.28
Mortgage loan financing	718,351			723,313			748,489			Discounted Cash Flow(10)	4.96	%	1.51
CLO debt	117,760			117,760			117,760			Discounted Cash Flow(9)	4.97	%	5.91
Borrowings from the FHLB	1,076,449			1,076,449			1,084,876			Discounted Cash Flow	2.50	%	2.32
Senior unsecured notes	1,166,201			1,157,117			1,201,973			Broker quotations, pricing services	5.39	%	3.53
Nonhedge derivatives(1)(8)	270,471			N/A			82			Counterparty quotations	N/A		0.25


(1)	Measured at fair value on a recurring basis with the net unrealized gains or losses recorded as a component of other comprehensive income (loss) in equity.


(2)	Represents notional outstanding balance of underlying collateral.


(3)	Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings.


(4)	Fair value for floating rate mortgage loan receivables, held for investment is estimated to approximate the outstanding face amount given the short interest rate reset risk (30 days) and no significant change in credit risk. Fair value for fixed rate mortgage loan receivables, held for investment is measured using a discounted cash flow model.


(5)	Fair value is estimated to equal par value.


(6)	Fair value for mortgage loan receivables, held for sale is measured using a hypothetical securitization model utilizing market data from recent securitization spreads and pricing.


(7)	Fair value of the FHLB stock approximates outstanding face amount as the Company’s captive insurance subsidiary is restricted from trading the stock and can only put the stock back to the FHLB, at the FHLB’s discretion, at par.


(8)	The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts.

(9)

Fair value for repurchase agreement liabilities and CLO debt is estimated to approximate carrying amount primarily due to the short interest rate reset risk (30 days) of the financings and the high credit quality of the assets collateralizing these positions. If the collateral is determined to be impaired, the related financing would be revalued accordingly. There are no impairments on any positions.


(10)	For repurchase agreements - long term and mortgage loan financing, the carrying value approximates the fair value discounting the expected cash flows at current market rates. If the collateral is determined to be impaired, the related financing would be revalued accordingly. There are no impairments on any positions.

December 31, 2018



											Weighted Average
	Outstanding Face Amount			Amortized Cost Basis			Fair Value			Fair Value Method	Yield %		Remaining Maturity/Duration (years)
Assets:
CMBS(1)	$	1,258,819		$	1,257,801		$	1,252,640		Internal model, third-party inputs	3.14	%	2.33
CMBS interest-only(1)	2,373,936		(2)	55,534			55,691			Internal model, third-party inputs	2.80	%	2.69
GNMA interest-only(3)	135,932		(2)	2,862			2,648			Internal model, third-party inputs	6.30	%	4.11
Agency securities(1)	668			682			662			Internal model, third-party inputs	1.83	%	2.36
GNMA permanent securities(1)	32,633			32,889			33,064			Internal model, third-party inputs	3.76	%	5.03
Corporate bonds(1)	55,305			54,257			53,871			Internal model, third-party inputs	5.04	%	2.51
Equity securities(3)	N/A			13,154			11,550			Observable market prices	N/A		N/A
Mortgage loan receivables held for investment, net, at amortized cost:
Mortgage loan receivables held for investment, net, at amortized cost	3,340,381			3,318,390			3,324,588			Discounted Cash Flow(4)	7.84	%	1.32
Provision for loan losses	N/A			(17,900		)	(17,900		)	(5)	N/A		N/A
Mortgage loan receivables held for sale	181,905			182,439			187,870			Internal model, third-party inputs(6)	5.46	%	9.75
FHLB stock(7)	57,915			57,915			57,915			(7)	4.50	%	N/A
Nonhedge derivatives(1)(8)	—			N/A			—			Counterparty quotations	N/A		0.00

Liabilities:
Repurchase agreements - short-term	436,957			436,957			436,957			Discounted Cash Flow(9)	3.42	%	0.23
Repurchase agreements - long-term	226,728			226,728			226,728			Discounted Cash Flow(10)	3.47	%	1.73
Mortgage loan financing	738,825			743,902			735,662			Discounted Cash Flow(10)	5.09	%	2.61
CLO debt	601,543			601,543			601,543			Discounted Cash Flow(9)	4.41	%	9.40
Participation Financing - Mortgage Loan Receivable	2,453			2,453			2,453			Discounted Cash Flow(11)	17.00	%	0.43
Borrowings from the FHLB	1,286,000			1,286,000			1,286,664			Discounted Cash Flow	2.55	%	2.46
Senior unsecured notes	1,166,201			1,154,991			1,111,288			Broker quotations, pricing services	5.39	%	4.28
Nonhedge derivatives(1)(8)	578,971			N/A			975			Counterparty quotations	N/A		0.25


(1)	Measured at fair value on a recurring basis with the net unrealized gains or losses recorded as a component of other comprehensive income (loss) in equity.


(2)	Represents notional outstanding balance of underlying collateral.


(3)	Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings.


(4)	Fair value for floating rate mortgage loan receivables, held for investment is estimated to approximate the outstanding face amount given the short interest rate reset risk (30 days) and no significant change in credit risk. Fair value for fixed rate mortgage loan receivables, held for investment is measured using a discounted cash flow.


(5)	Fair value is estimated to equal par value.


(6)	Fair value for mortgage loan receivables, held for sale is measured using a hypothetical securitization model utilizing market data from recent securitization spreads and pricing.


(7)	Fair value of the FHLB stock approximates outstanding face amount as the Company’s captive insurance subsidiary is restricted from trading the stock and can only put the stock back to the FHLB, at the FHLB’s discretion, at par.


(8)	The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts.

(9)

Fair value for repurchase agreement liabilities and CLO debt is estimated to approximate carrying amount primarily due to the short interest rate reset risk (30 days) of the financings and the high credit quality of the assets collateralizing these positions. If the collateral is determined to be impaired, the related financing would be revalued accordingly. There are no impairments on any positions.


(10)	For repurchase agreements - long term and mortgage loan financing, the carrying value approximates the fair value discounting the expected cash flows at current market rates. If the collateral is determined to be impaired, the related financing would be revalued accordingly. There are no impairments on any positions.


(11)	Fair value for Participation Financing - Mortgage Loan Receivable approximates amortized cost as this is a loan participation to a third party.

The following table summarizes the Company’s financial assets and liabilities, which are both reported at fair value on a recurring basis (as indicated) or amortized cost/par, at September 30, 2019 and December 31, 2018 ($ in thousands):

September 30, 2019



Financial Instruments Reported at Fair Value on Consolidated Statements of Financial Condition	Outstanding Face Amount			Fair Value
	Outstanding Face Amount			Level 1		Level 2		Level 3			Total

Assets:
CMBS(1)	$	1,767,314		$	—	$	—	$	1,777,085		$	1,777,085
CMBS interest-only(1)	2,128,234		(2)	—		—		40,601			40,601
GNMA interest-only(3)	113,096		(2)	—		—		2,026			2,026
Agency securities(1)	641			—		—		654			654
GNMA permanent securities(1)	31,760			—		—		32,795			32,795
Corporate bonds(1)	32,088			—		—		32,372			32,372
Equity securities	N/A			13,457		—		—			13,457
Nonhedge derivatives(4)	6,000			—		22		—			22
				$	13,457	$	22	$	1,885,533		$	1,899,012
Liabilities:
Nonhedge derivatives(4)	270,471			$	—	$	82	$	—		$	82

Financial Instruments Not Reported at Fair Value on Consolidated Statements of Financial Condition	Outstanding Face Amount			Fair Value
	Outstanding Face Amount			Level 1		Level 2		Level 3			Total

Assets:
Mortgage loan receivable held for investment, net, at amortized cost:
Mortgage loans held by consolidated subsidiaries	$	3,249,711		$	—	$	—	$	3,249,383		$	3,249,383
Provision for loan losses	N/A			—		—		(18,500		)	(18,500		)
Mortgage loan receivable held for sale	173,957			—		—		182,716			182,716
CMBS(5)	12,144			—		—		11,627			11,627
CMBS interest-only(5)	11,123		(2)	—		—		839			839
FHLB stock	61,619			—		—		61,619			61,619
				$	—	$	—	$	3,487,684		$	3,487,684
Liabilities:
Repurchase agreements - short-term	1,486,049			$	—	$	—	$	1,486,049		$	1,486,049
Repurchase agreements - long-term	299,999			—		—		299,999			299,999
Mortgage loan financing	718,351			—		—		748,489			748,489
CLO debt	117,760			—		—		117,760			117,760
Borrowings from the FHLB	1,076,449			—		—		1,084,876			1,084,876
Senior unsecured notes	1,166,201			—		—		1,201,973			1,201,973
				$	—	$	—	$	4,939,146		$	4,939,146


(1)	Measured at fair value on a recurring basis with the net unrealized gains or losses recorded as a component of other comprehensive income (loss) in equity.


(2)	Represents notional outstanding balance of underlying collateral.


(3)	Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings.


(4)	Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings. The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts.


(5)	Restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust, which are classified as held-to-maturity and reported at amortized cost.

December 31, 2018



Financial Instruments Reported at Fair Value on Consolidated Statements of Financial Condition	Outstanding Face Amount			Fair Value
	Outstanding Face Amount			Level 1		Level 2		Level 3			Total

Assets:
CMBS(1)	$	1,246,609		$	—	$	—	$	1,241,334		$	1,241,334
CMBS interest-only(1)	2,362,747		(2)	—		—		54,789			54,789
GNMA interest-only(3)	135,932		(2)	—		—		2,648			2,648
Agency securities(1)	668			—		—		662			662
GNMA permanent securities(1)	32,633			—		—		33,064			33,064
Corporate bonds(1)	55,305			—		—		53,871			53,871
Equity securities	N/A			11,550		—		—			11,550
				$	11,550	$	—	$	1,386,368		$	1,397,918
Liabilities:
Nonhedge derivatives(4)	$	605,871		$	—	$	975	$	—		$	975


Financial Instruments Not Reported at Fair Value on Consolidated Statements of Financial Condition	Outstanding Face Amount			Fair Value
	Outstanding Face Amount			Level 1		Level 2		Level 3			Total

Assets:
Mortgage loan receivable held for investment, net, at amortized cost:
Mortgage loans held by consolidated subsidiaries	$	3,340,381		$	—	$	—	$	3,324,588		$	3,324,588
Provision for loan losses	N/A			—		—		(17,900		)	(17,900		)
Mortgage loan receivables held for sale	181,905			—		—		187,870			187,870
CMBS(5)	12,210			—		—		11,306			11,306
CMBS interest-only(5)	11,189		(2)	—		—		902			902
FHLB stock	57,915			—		—		57,915			57,915
				$	—	$	—	$	3,564,681		$	3,564,681
Liabilities:
Repurchase agreements - short-term	436,957			$	—	$	—	$	436,957		$	436,957
Repurchase agreements - long-term	226,728			—		—		226,728			226,728
Mortgage loan financing	738,825			—		—		735,662			735,662
CLO debt	601,543			—		—		601,543			601,543
Participation Financing - Mortgage Loan Receivable	2,453			—		—		2,453			2,453
Borrowings from the FHLB	1,286,000			—		—		1,286,664			1,286,664
Senior unsecured notes	1,166,201			—		—		1,111,288			1,111,288
				$	—	$	—	$	4,401,295		$	4,401,295


(1)	Measured at fair value on a recurring basis with the net unrealized gains or losses recorded as a component of other comprehensive income (loss) in equity.


(2)	Represents notional outstanding balance of underlying collateral.


(3)	Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings.


(4)	Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings. The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts.


(5)	Restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust, which are classified as held-to-maturity and reported at amortized cost.

The following table summarizes changes in Level 3 financial instruments reported at fair value on the consolidated statements of financial condition for the nine months ended September 30, 2019 and 2018 ($ in thousands):



	Nine Months Ended September 30,
Level 3	2019			2018

Balance at January 1,	$	1,385,957		$	1,106,517
Transfer from level 2	—			—
Purchases	1,193,671			303,007
Sales	(533,811		)	(306,109		)
Paydowns/maturities	(178,402		)	(93,185		)
Amortization of premium/discount	(9,333		)	(17,842		)
Unrealized gain/(loss)	16,813			(9,203		)
Realized gain/(loss) on sale(1)	10,639			(4,896		)
Balance at September 30,	$	1,885,534		$	978,289


(1)	Includes realized losses on securities recorded as other than temporary impairments.

The following is quantitative information about significant unobservable inputs in our Level 3 measurements for those assets and liabilities measured at fair value on a recurring basis ($ in thousands):

September 30, 2019



Financial Instrument	Carrying Value			Valuation Technique	Unobservable Input	Minimum		Weighted Average		Maximum

CMBS(1)	$	1,788,712		Discounted cash flow	Yield (4)	1.68	%	3.1	%	20.55	%
					Duration (years)(5)	0.00		1.54		7.10
CMBS interest-only(1)	41,440		(2)	Discounted cash flow	Yield (4)	1.79	%	3.73	%	6.35	%
					Duration (years)(5)	0.08		2.61		3.85
					Prepayment speed (CPY)(5)	100.00		100.00		100.00
GNMA interest-only(3)	2,026		(2)	Discounted cash flow	Yield (4)	(7.19	)%	14.44	%	44.47	%
					Duration (years)(5)	0.00		2.78		8.61
					Prepayment speed (CPJ)(5)	5.00		11.57		15.00
Agency securities(1)	654			Discounted cash flow	Yield (4)	—	%	1.43	%	1.85	%
					Duration (years)(5)	0.00		2.46		3.17
GNMA permanent securities(1)	32,795			Discounted cash flow	Yield (4)	3.43	%	18.72	%	84.30	%
					Duration (years)(5)	1.15		7.76		13.99
Corporate bonds(1)	32,372			Discounted cash flow	Yield (4)	2.79	%	2.79	%	2.79	%
					Duration (years)(5)	1.05		1.05		1.05
Total	$	1,897,999


(1)	CMBS, CMBS interest-only securities, Agency securities, GNMA construction securities, GNMA permanent securities and corporate bonds are classified as available-for-sale and reported at fair value with changes in fair value recorded in the current period in other comprehensive income.


(2)	The amounts presented represent the principal amount of the mortgage loans outstanding in the pool in which the interest-only securities participate.


(3)	Agency interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings.

Sensitivity of the Fair Value to Changes in the Unobservable Inputs


(4)	Significant increase (decrease) in the unobservable input in isolation would result in significantly lower (higher) fair value measurement.


(5)	Significant increase (decrease) in the unobservable input in isolation would result in either a significantly lower or higher (lower or higher) fair value measurement depending on the structural features of the security in question.

December 31, 2018



Financial Instrument	Carrying Value			Valuation Technique	Unobservable Input	Minimum		Weighted Average		Maximum

CMBS(1)	$	1,252,640		Discounted cash flow	Yield (3)	—	%	3.54	%	21.67	%
					Duration (years)(4)	0.00		2.50		7.78
CMBS interest-only(1)	55,691		(2)	Discounted cash flow	Yield (3)	0.87	%	4.71	%	8.11	%
					Duration (years)(4)	0.14		2.96		6.86
					Prepayment speed (CPY)(4)	100.00		100.00		100.00
GNMA interest-only(3)	2,648		(2)	Discounted cash flow	Yield (4)	1.21	%	5.54	%	10.21	%
					Duration (years)(5)	0.04		3.13		4.77
					Prepayment speed (CPJ)(5)	5.00		6.58		15.00
Agency securities(1)	662			Discounted cash flow	Yield (4)	—	%	2.1	%	2.84	%
					Duration (years)(5)	0.00		2.83		3.82
GNMA permanent securities(1)	33,064			Discounted cash flow	Yield (4)	—	%	3.51	%	4	%
					Duration (years)(5)	0.00		5.62		5.88
Corporate bonds(1)	53,871			Discounted cash flow	Yield (4)	5.3	%	5.35	%	5.46	%
					Duration (years)(5)	1.94		2.19		2.70
Total	$	1,398,576


(1)	CMBS, CMBS interest-only securities, Agency securities, GNMA construction securities, GNMA permanent securities and corporate bonds are classified as available-for-sale and reported at fair value with changes in fair value recorded in the current period in other comprehensive income.


(2)	The amounts presented represent the principal amount of the mortgage loans outstanding in the pool in which the interest-only securities participate.


(3)	Agency interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings.

Sensitivity of the Fair Value to Changes in the Unobservable Inputs


(4)	Significant increase (decrease) in the unobservable input in isolation would result in significantly lower (higher) fair value measurement.


(5)	Significant increase (decrease) in the unobservable input in isolation would result in either a significantly lower or higher (lower or higher) fair value measurement depending on the structural features of the security in question.

Nonrecurring Fair Values

The Company measures fair value of certain assets on a nonrecurring basis when events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Adjustments to fair value generally result from the application of lower of amortized cost or fair value accounting for assets held for sale or write-down of assets value due to impairment.

There were no assets carried at fair value on a nonrecurring basis at September 30, 2019 and December 31, 2018.

The following table summarizes the fair value write-downs to assets carried at fair value on a nonrecurring basis ($ in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Impairment of real estate
Real estate, net(1)(2)	$	—	$	—	$	1,350	$	—

(1)

The write down to fair value was recorded based on contracted sales price and classified as Level 2 of the fair valuation hierarchy. On May 1, 2019, the Company completed the sale of the property recognizing $3.9 million of operating lease income, $3.5 million realized loss on sale of real estate, net and $0.4 million of depreciation and amortization expense, resulting in a $20 thousand loss on sale of real estate, net.

(2)

Impairment is discussed in further detail in Note 5, Real Estate and Related Lease Intangibles, Net.

Basis of Accounting and Principles of Consolidation

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

INCOME TAXES	9 Months Ended
INCOME TAXES	Sep. 30, 2019
Income Tax Disclosure [Abstract]
INCOME TAXES	16. INCOME TAXES The Company elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”), commencing with the taxable year ended December 31, 2015 (the REIT Election”). As such, the Company’s income is generally not subject to U.S. Federal, state and local corporate income taxes other than as described below. Certain of the Company’s subsidiaries have elected to be treated as TRSs. TRSs permit the Company to participate in certain activities from which REITs are generally precluded, as long as these activities meet specific criteria, are conducted within the parameters of certain limitations established by the Code, and are conducted in entities which elect to be treated as taxable subsidiaries under the Code. To the extent these criteria are met, the Company will continue to maintain its qualification as a REIT. The Company’s TRSs are not consolidated for U.S. federal income tax purposes, but are instead taxed as corporations. For financial reporting purposes, a provision for current and deferred taxes is established for the portion of earnings recognized by the Company with respect to its interest in TRSs. Current income tax expense (benefit) was $0.4 million and $(6.9) million for the three and nine months ended September 30, 2019, respectively. Current income tax expense (benefit) was $7.2 million and $10.2 million for the three and nine months ended September 30, 2018, respectively. As of September 30, 2019 and December 31, 2018, the Company’s net deferred tax assets (liabilities) were $(4.7) million and $2.3 million, respectively, and are included in other assets (other liabilities) in the Company’s consolidated balance sheets. Deferred income tax expense (benefit) included within the provision for income taxes was $0.7 million and $7.4 million for the three and nine months ended September 30, 2019, respectively. Deferred income tax expense (benefit) included within the provision for income taxes was $(6.0) million and $(4.5) million for the three and nine months ended September 30, 2018, respectively. The Company’s net deferred tax liability is comprised of deferred tax assets and deferred tax liabilities. The Company believes it is more likely than not that the deferred tax assets (aside from the exception noted below) will be realized in the future. Realization of the deferred tax assets is dependent upon our generation of sufficient taxable income in future years in appropriate tax jurisdictions to obtain benefit from the reversal of temporary differences. The amount of deferred tax assets considered realizable is subject to adjustment in future periods if estimates of future taxable income change. As of September 30, 2019, the Company has a deferred tax asset of $10.0 million relating to capital losses which it may only use to offset capital gains. These tax attributes will begin to expire if unused in 2020. As the realization of these assets are not more likely than not before their expiration, the Company has provided a full valuation allowance against this deferred tax asset. The Company’s tax returns are subject to audit by taxing authorities. Generally, as of September 30, 2019, the tax years 2015-2018 remain open to examination by the major taxing jurisdictions in which the Company is subject to taxes. The Company acquired certain corporate entities at the time of its IPO. The related acquisition agreements provided an indemnification to the Company by each transferor of any amounts due for any potential tax liabilities owed by these entities for tax years prior to their acquisition. In January 2019, a settlement was reached with New York State pertaining to an audit of these corporate entities for the years 2013-2015. As a result of the settlement, during the year ended December 31, 2018, management recorded income tax expense in the amount of $3.3 million and a corresponding payable to the State of New York. Pursuant to the indemnification, management expects to recover $2.5 million of such amounts and, accordingly, recorded fee and other income in the amount of $2.5 million as well as a corresponding receivable from the indemnity counterparties. As of July 31, 2019, the Company collected all amounts owed by the indemnity counterparties related to the 2013-2015 audit. The IRS recently completed its audit of the 2014 tax year and did not recommend any changes to the Company’s tax return. The Company is currently under New York City audit for tax years 2012-2014. The Company does not expect the audit to result in any material changes to the Company’s financial position. The Company does not expect tax expense to have an impact on either short or long-term liquidity or capital needs. Under U.S. GAAP, a tax benefit related to an income tax position may be recognized when it is more likely than not that the position will be sustained upon examination by the tax authorities based on the technical merits of the position. A position that meets this standard is measured at the largest amount of benefit that will more likely than not be realized upon settlement. As of September 30, 2019 and December 31, 2018, the Company’s unrecognized tax benefit is a liability for $0.2 million and $0.8 million, respectively, and is included in the accrued expenses in the Company’s consolidated balance sheets. This unrecognized tax benefit, if recognized, would have a favorable impact on our effective income tax rate in future periods. As of September 30, 2019, the Company has not recognized a significant amount of any interest or penalties related to uncertain tax positions. In addition, the Company does not believe that it has any tax positions for which it is reasonably possible that it will be required to record a significant liability for unrecognized tax benefits within the next twelve months. The statute of limitations for the federal portion of the $0.8 million unrecognized tax benefit as of December 31, 2018 had expired as of September 30, 2019. This expiration allowed us to release $0.6 million of the unrecognized tax benefit liability. Tax Receivable Agreement Upon consummation of the IPO, the Company entered into a Tax Receivable Agreement with the Continuing LCFH Limited Partners. Under the Tax Receivable Agreement the Company generally is required to pay to those Continuing LCFH Limited Partners that exchange their interests in LCFH and Class B shares of the Company for Class A shares of the Company, 85% of the applicable cash savings, if any, in U.S. federal, state and local income tax that the Company realizes (or is deemed to realize in certain circumstances) as a result of (i) the increase in tax basis in its proportionate share of LCFH’s assets that is attributable to the Company as a result of the exchanges and (ii) payments under the Tax Receivable Agreement, including any tax benefits related to imputed interest deemed to be paid by the Company as a result of such agreement. The Company may make future payments under the Tax Receivable Agreement if the tax benefits are realized. We would then benefit from the remaining 15% of cash savings in income tax that we realize. For purposes of the Tax Receivable Agreement, cash savings in income tax will be computed by comparing our actual income tax liability to the amount of such taxes that we would have been required to pay had there been no increase to the tax basis of the assets of LCFH as a result of the exchanges and had we not entered into the Tax Receivable Agreement. Payments to a Continuing LCFH Limited Partner under the Tax Receivable Agreement are triggered by each exchange and are payable annually commencing following the Company’s filing of its income tax return for the year of such exchange. The timing of the payments may be subject to certain contingencies, including the Company having sufficient taxable income to utilize all of the tax benefits defined in the Tax Receivable Agreement. As of September 30, 2019 and December 31, 2018, pursuant to the Tax Receivable Agreement, the Company recorded a liability of $1.6 million, included in amount payable pursuant to tax receivable agreement in the consolidated balance sheets for Continuing LCFH Limited Partners. The amount and timing of any payments may vary based on a number of factors, including the absence of any material change in the relevant tax law, the Company continuing to earn sufficient taxable income to realize all tax benefits, and assuming no additional exchanges that are subject to the Tax Receivable Agreement. Depending upon the outcome of these factors, the Company may be obligated to make substantial payments pursuant to the Tax Receivable Agreement. The actual payment amounts may differ from these estimated amounts, as the liability will reflect changes in prevailing tax rates, the actual benefit the Company realizes on its annual income tax returns, and any additional exchanges. To determine the current amount of the payments due, the Company estimates the amount of the Tax Receivable Agreement payments that will be made within twelve months of the balance sheet date. As described in Note 1 above, the Tax Receivable Agreement was amended and restated in connection with our REIT Election, effective as of December 31, 2014 (the “TRA Amendment”), in order to preserve a portion of the potential tax benefits currently existing under the Tax Receivable Agreement that would otherwise be reduced in connection with our REIT Election. The purpose of the TRA Amendment was to preserve the benefits of the Tax Receivable Agreement to the extent possible in a REIT, although, as a result, the amount of payments made to the TRA Members under the TRA Amendment is expected to be less than the amount that would have been paid under the original Tax Receivable Agreement. The TRA Amendment continues to share such benefits in the same proportions and otherwise has substantially the same terms and provisions as the prior Tax Receivable Agreement.

RELATED PARTY TRANSACTIONS	9 Months Ended
RELATED PARTY TRANSACTIONS	Sep. 30, 2019
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	17. RELATED PARTY TRANSACTIONS Ladder Select Bond Fund On October 18, 2016, Ladder Capital Asset Management LLC (“LCAM”), a subsidiary of the Company and a registered investment adviser, launched the Ladder Select Bond Fund (the “Fund”), a mutual fund. In addition, on October 18, 2016, the Company made a $10.0 million investment in the Fund, which is included in other assets in the consolidated balance sheets. As of September 30, 2019, members of senior management have $0.8 million invested in the Fund. LCAM earns a 0.75% fee on assets under management, which may be reduced for expenses incurred in excess of the Fund’s expense cap of 0.95%. Stockholders Agreement On March 3, 2017, Ladder, RREF II Ladder LLC, an entity affiliated with The Related Companies (“Related”), and certain pre-IPO stockholders of Ladder, including affiliates of TowerBrook Capital Partners, L.P. and GI Partners L.P., closed a purchase by Related of $80.0 million of Ladder’s Class A common stock from the pre-IPO stockholders. As part of the closing of the transaction, Ladder and Related entered into a Stockholders Agreement, dated as of March 3, 2017, pursuant to which Jonathan Bilzin resigned from the Board, and all committees thereof, and Ladder appointed Richard O’Toole to replace Mr. Bilzin as a Class II Director on Ladder’s Board, each effective as of March 3, 2017. Pursuant to the Stockholders Agreement, Ladder granted to Related a right of first offer with respect to certain horizontal risk retention investments in which Ladder intends to retain an interest and Related agreed to certain standstill provisions. Commercial Real Estate Loans From time to time, the Company may provide commercial real estate loans to entities affiliated with certain of our directors, officers or large shareholders who are, as part of their ordinary course of business, commercial real estate investors. These loans are made in the ordinary course of the Company’s business on the same terms and conditions as would be offered to any other borrower of similar type and standing on a similar property. On March 13, 2017, Related Reserve IV LLC, an affiliate of Related Fund Management LLC (the “B Participation Holder”), purchased a $4.0 million subordinate participation interest (the “B Participation Interest”) in the up to $136.5 million mortgage loan (the “Loan”) secured by the Conrad hotels and condominiums in Fort Lauderdale, Florida from a subsidiary of the Company. The B Participation Interest earns interest at an annual rate of 17%, with the Company’s participation interest (the “A Participation Interest”) receiving the balance of all interest paid under the Loan. Upon an event of default under the Loan, all receipts will be applied to the payment of interest and principal on the Company’s share of the principal balance before the B Participation Holder receives any sums. The Company retains all control over the administration and servicing of the whole loan, except that upon the occurrence of certain Loan defaults and other events, the B Participation Holder will have the option to trigger a buy-sell option, whereupon the Company shall have the right to either repurchase the B Participation Interest at par or sell the A Participation Interest to the B Participation Holder at par plus exit fees that would have been payable upon a borrower repayment. Because the participation interest was not pari passu and effective control continued to reside with the retained portions of the loans the transfers of any portion of this loan asset is considered a non-recourse secured borrowing in which the full loan asset remains on the Company’s consolidated balance sheets in mortgage loan receivables held for investment, net, at amortized cost and the sale proceeds are reported as debt obligations. The loan was repaid during the three months ended June 30, 2019. See Note 7, Debt Obligations, Net for further detail. The Company recorded $0.2 million of interest expense for the nine months ended September 30, 2019, which is included in accrued expenses on the consolidated balance sheets. The Company recorded $0.1 million and $0.4 million of interest expense for the three and nine months ended September 30, 2018, respectively, which is included in accrued expenses on the consolidated balance sheets. On December 12, 2018, Ladder provided a $6.4 million first mortgage interest-only loan to a borrower affiliated with principals of Related to facilitate the acquisition of a gym facility and associated parking located in Woodbury, New York. The borrowing entity is owned directly or indirectly by certain investors, including, among other principals of Related, Richard O’Toole, who owns an approximate 12% interest in the borrowing entity and is a member of Ladder’s board of directors. For the nine months ended September 30, 2019, the Company earned $0.1 million in interest income related to this loan. The loan was sold into a securitization trust during the three months ended June 30, 2019. On March 5, 2019, Ladder provided a $14.3 million first mortgage interest-only loan to a borrower affiliated with principals of Related to refinance a gym facility and associated parking located in Bloomfield Heights, Michigan. The borrowing entity is owned directly or indirectly by certain investors, including, among other principals of Related, Richard O’Toole, who owns an approximate 0.7% interest in the borrowing entity and is a member of Ladder’s board of directors. For the nine months ended September 30, 2019, the Company earned $0.3 million in interest income related to this loan. The loan was sold into a securitization trust during the three months ended June 30, 2019.

COMMITMENTS AND CONTINGENCIES	9 Months Ended
COMMITMENTS AND CONTINGENCIES	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	18. COMMITMENTS AND CONTINGENCIES Leases The Company adopted ASC Topic 842 on January 1, 2019. The primary impact of applying ASC Topic 842 was the initial recognition of a $3.5 million lease liability and a $3.3 million right of use asset (including previously accrued straight line rent) on the Company’s consolidated financial statements, for leases classified as operating leases under ASC Topic 840, primarily for the Company’s corporate headquarters and other identified leases. There is no cumulative effect on retained earnings or other components of equity recognized as of January 1, 2019. As of September 30, 2019, the Company had a $2.7 million lease liability and a $2.7 million right-of-use asset on its consolidated balance sheets. Tenant reimbursements, which consist of real estate taxes and other municipal charges paid by us which were reimbursable by our tenants pursuant to the terms of triple-net lease agreements, were $1.3 million and $4.6 million for the three and nine months ended September 30, 2019, respectively, and are included in operating lease income on the Company’s consolidated statements of income, compared to $2.3 million and $7.8 million of tenant reimbursements for the three and nine months ended September 30, 2018, respectively. Investments in Unconsolidated Joint Ventures We have made investments in various unconsolidated joint ventures. See Note 6, Investment in and Advances to Unconsolidated Joint Ventures for further details of our unconsolidated investments. Our maximum exposure to loss from these investments is limited to the carrying value of our investments. Unfunded Loan Commitments As of September 30, 2019, the Company’s off-balance sheet arrangements consisted of $257.7 million of unfunded commitments on mortgage loan receivables held for investment to provide additional first mortgage loan financing, at rates to be determined at the time of funding. As of December 31, 2018, the Company’s off-balance sheet arrangements consisted of $379.8 million of unfunded commitments of mortgage loan receivables held for investment to provide additional first mortgage loan financing, at rates to be determined at the time of funding. Such commitments are subject to our loan borrowers’ satisfaction of certain financial and nonfinancial covenants and may or may not be funded depending on a variety of circumstances including timing, credit metric hurdles, and other nonfinancial events occurring. These commitments are not reflected on the consolidated balance sheets.

SEGMENT REPORTING

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

SEGMENT REPORTING

19. SEGMENT REPORTING

The Company has determined that it has three reportable segments based on how the chief operating decision maker reviews and manages the business. These reportable segments include loans, securities, and real estate. The loans segment includes mortgage loan receivables held for investment (balance sheet loans) and mortgage loan receivables held for sale (conduit loans). The securities segment is composed of all of the Company’s activities related to commercial real estate securities, which include investments in CMBS, U.S. Agency Securities, corporate bonds and equity securities. The real estate segment includes net leased properties, office buildings, a student housing portfolio, industrial buildings, a shopping center and condominium units. Corporate/other includes the Company’s investments in joint ventures, other asset management activities and operating expenses.

The Company evaluates performance based on the following financial measures for each segment ($ in thousands):



	Loans			Securities			Real Estate(1)			Corporate/Other(2)				Company Total

Three months ended September 30, 2019
Interest income	$	66,422		$	15,515		$	7		$	307			$	82,251
Interest expense	(12,063		)	(5,632		)	(9,646		)	(24,056		)		(51,397		)
Net interest income (expense)	54,359			9,883			(9,639		)	(23,749		)		30,854
Provision for loan losses	—			—			—			—				—
Net interest income (expense) after provision for loan losses	54,359			9,883			(9,639		)	(23,749		)		30,854

Operating lease income	—			—			24,405			—				24,405
Sale of loans, net	11,247			—			—			—				11,247
Realized gain (loss) on securities	—			3,396			—			—				3,396
Unrealized gain (loss) on equity securities	—			254			—			—				254
Unrealized gain (loss) on Agency interest-only securities	—			16			—			—				16
Realized gain on sale of real estate, net	—			—			2,082			—				2,082
Fee and other income	3,839			428			—			899				5,166
Net result from derivative transactions	(6,557		)	(2,908		)	—			—				(9,465		)
Earnings (loss) from investment in unconsolidated joint ventures	—			—			1,094			—				1,094
Total other income (loss)	8,529			1,186			27,581			899				38,195

Salaries and employee benefits	—			—			—			(14,319		)		(14,319		)
Operating expenses	—			—			—			(5,314		)	(3)	(5,314		)
Real estate operating expenses	—			—			(6,270		)	—				(6,270		)
Fee expense	(1,264		)	(92		)	(700		)	—				(2,056		)
Depreciation and amortization	—			—			(9,005		)	(25		)		(9,030		)
Total costs and expenses	(1,264		)	(92		)	(15,975		)	(19,658		)		(36,989		)

Income tax (expense) benefit	—			—			—			(1,112		)		(1,112		)
Segment profit (loss)	$	61,624		$	10,977		$	1,967		$	(43,620	)		$	30,948

Total assets as of September 30, 2019	$	3,387,157		$	1,911,456		$	1,032,752		$	288,509			$	6,619,874



	Loans			Securities			Real Estate(1)			Corporate/Other(2)				Company Total

Three months ended September 30, 2018
Interest income	$	81,779		$	8,541		$	6		$	60			$	90,386
Interest expense	(17,232		)	(1,482		)	(9,213		)	(23,549		)		(51,476		)
Net interest income (expense)	64,547			7,059			(9,207		)	(23,489		)		38,910
Provision for loan losses	(10,300		)	—			—			—				(10,300		)
Net interest income (expense) after provision for loan losses	54,247			7,059			(9,207		)	(23,489		)		28,610

Operating lease income	—			—			24,997			—				24,997
Sale of loans, net	1,861			—			—			—				1,861
Realized gain (loss) on securities	—			(2,554		)	—			—				(2,554		)
Unrealized gain (loss) on Agency interest-only securities	—			142			—			—				142
Realized gain on sale of real estate, net	—			—			63,704			—				63,704
Fee and other income	3,895			—			—			956				4,851
Net result from derivative transactions	3,741			3,374			—			—				7,115
Earnings (loss) from investment in unconsolidated joint ventures	—			—			401			—				401
Gain (loss) on extinguishment/defeasance of debt	—			—			(4,323		)	—				(4,323		)
Total other income (loss)	9,497			962			84,779			956				96,194

Salaries and employee benefits	—			—			—			(15,792		)		(15,792		)
Operating expenses	61			—			—			(5,525		)	(3)	(5,464		)
Real estate operating expenses	—			—			(7,152		)	—				(7,152		)
Fee expense	(928		)	(91		)	(292		)	—				(1,311		)
Depreciation and amortization	—			—			(10,398		)	(19		)		(10,417		)
Total costs and expenses	(867		)	(91		)	(17,842		)	(21,336		)		(40,136		)

Income tax (expense) benefit	—			—			—			(1,204		)		(1,204		)
Segment profit (loss)	$	62,877		$	7,930		$	57,730		$	(45,073	)		$	83,464

Total assets as of December 31, 2018	$	3,482,929		$	1,410,126		$	1,038,376		$	341,441			$	6,272,872



	Loans			Securities			Real Estate(1)			Corporate/Other(2)				Company Total

Nine months ended September 30, 2019
Interest income	$	209,369		$	43,844		$	21		$	806			$	254,040
Interest expense	(41,043		)	(12,250		)	(27,620		)	(74,102		)		(155,015		)
Net interest income (expense)	168,326			31,594			(27,599		)	(73,296		)		99,025
Provision for loan losses	(600		)	—			—			—				(600		)
Net interest income (expense) after provision for loan losses	167,726			31,594			(27,599		)	(73,296		)		98,425

Operating lease income	—			—			81,106			—				81,106
Sale of loans, net	38,589			—			—			—				38,589
Realized gain (loss) on securities	—			10,726			—			—				10,726
Unrealized gain (loss) on equity securities	—			1,341			—			—				1,341
Unrealized gain (loss) on Agency interest-only securities	—			38			—			—				38
Realized gain on sale of real estate, net	—			—			963			—				963
Impairment of real estate	—			—			(1,350		)	—				(1,350		)
Fee and other income	13,095			1,165			7			2,780				17,047
Net result from derivative transactions	(20,273		)	(15,683		)	—			—				(35,956		)
Earnings (loss) from investment in unconsolidated joint ventures	—			—			3,617			—				3,617
Gain (loss) on extinguishment of debt	—			—			(1,070		)	—				(1,070		)
Total other income (loss)	31,411			(2,413		)	83,273			2,780				115,051

Salaries and employee benefits	—			—			—			(52,800		)		(52,800		)
Operating expenses	—			—			—			(16,727		)	(3)	(16,727		)
Real estate operating expenses	—			—			(17,776		)					(17,776		)
Fee expense	(3,516		)	(280		)	(1,155		)	—				(4,951		)
Depreciation and amortization	—			—			(29,118		)	(74		)		(29,192		)
Total costs and expenses	(3,516		)	(280		)	(48,049		)	(69,601		)		(121,446		)

Income tax (expense) benefit	—			—			—			(478		)		(478		)
Segment profit (loss)	$	195,621		$	28,901		$	7,625		$	(140,595	)		$	91,552

Total assets as of September 30, 2019	$	3,387,157		$	1,911,456		$	1,032,752		$	288,509			$	6,619,874



	Loans			Securities			Real Estate(1)			Corporate/Other(2)				Company Total

Nine months ended September 30, 2018
Interest income	$	228,273		$	25,217		$	16		$	316			$	253,822
Interest expense	(46,286		)	(3,423		)	(25,799		)	(69,098		)		(144,606		)
Net interest income (expense)	181,987			21,794			(25,783		)	(68,782		)		109,216
Provision for loan losses	(13,600		)	—			—			—				(13,600		)
Net interest income (expense) after provision for loan losses	168,387			21,794			(25,783		)	(68,782		)		95,616

Operating lease income	—			—			79,306			—				79,306
Sale of loans, net	12,893			—			—			—				12,893
Realized gain (loss) on securities	—			(4,896		)	—			—				(4,896		)
Unrealized gain (loss) on Agency interest-only securities	—			456			—			—				456
Realized gain on sale of real estate, net	—			—			96,341			—				96,341
Fee and other income	10,823			72			3,416			3,268				17,579
Net result from derivative transactions	14,516			14,640			—			—				29,156
Earnings (loss) from investment in unconsolidated joint ventures	—			—			466			—				466
Gain (loss) on extinguishment of debt	(69		)	—			(4,323		)	—				(4,392		)
Total other income (loss)	38,163			10,272			175,206			3,268				226,909

Salaries and employee benefits	—			—			—			(46,754		)		(46,754		)
Operating expenses	61			—			—			(16,669		)	(3)	(16,608		)
Real estate operating expenses	—			—			(23,806		)					(23,806		)
Fee expense	(2,160		)	(297		)	(496		)	—				(2,953		)
Depreciation and amortization	—			—			(31,840		)	(56		)		(31,896		)
Total costs and expenses	(2,099		)	(297		)	(56,142		)	(63,479		)		(122,017		)

Income tax (expense) benefit	—			—			—			(5,679		)		(5,679		)
Segment profit (loss)	$	204,451		$	31,769		$	93,281		$	(134,672	)		$	194,829

Total assets as of December 31, 2018	$	3,482,929		$	1,410,126		$	1,038,376		$	341,441			$	6,272,872


(1)	Includes the Company’s investment in unconsolidated joint ventures that held real estate of $51.4 million and $40.4 million as of September 30, 2019 and December 31, 2018, respectively.

(2)

Corporate/Other represents all corporate level and unallocated items including any intercompany eliminations necessary to reconcile to consolidated Company totals. This segment also includes the Company’s investment in unconsolidated joint ventures and strategic investments that are not related to the other reportable segments above, including the Company’s investment in FHLB stock of $61.6 million and $57.9 million as of September 30, 2019 and December 31, 2018, respectively, the Company’s deferred tax asset (liability) of $(4.7) million and $2.3 million as of September 30, 2019 and December 31, 2018, respectively and the Company’s senior unsecured notes of $1.2 billion as of September 30, 2019 and December 31, 2018.

(3)

Includes $3.0 million and $9.1 million of professional fees for the three and nine months ended September 30, 2019, respectively. Includes $2.9 million and $8.7 million of professional fees for the three and nine months ended September 30, 2018, respectively.

SUBSEQUENT EVENTS	9 Months Ended
SUBSEQUENT EVENTS	Sep. 30, 2019
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	20. SUBSEQUENT EVENTS The Company has evaluated subsequent events through the issuance date of the financial statements and determined that no disclosure is necessary.

SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). In the opinion of management, the unaudited financial information for the interim periods presented in this report reflects all normal and recurring adjustments necessary for a fair statement of results of operations, financial position and cash flows. The interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2018, which are included in the Company’s Annual Report, as certain disclosures that would substantially duplicate those contained in the audited consolidated financial statements have not been included in this interim report. Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year. The interim consolidated

financial statements have been prepared, without audit, and do not necessarily include all information and footnotes necessary for a fair statement of our consolidated financial position, results of operations and cash flows in accordance with GAAP.

The consolidated financial statements include the Company’s accounts and those of its subsidiaries which are majority-owned and/or controlled by the Company and variable interest entities for which the Company has determined itself to be the primary beneficiary, if any. All significant intercompany transactions and balances have been eliminated.

Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810 — Consolidation (“ASC 810”), provides guidance on the identification of entities for which control is achieved through means other than voting rights (“variable interest entities” or “VIEs”) and the determination of which business enterprise, if any, should consolidate the VIEs. Generally, the consideration of whether an entity is a VIE applies when either: (1) the equity investors (if any) lack one or more of the essential characteristics of a controlling financial interest; (2) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support; or (3) the equity investors have voting rights that are not proportionate to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. The Company consolidates VIEs in which it is considered to be the primary beneficiary. The primary beneficiary is the entity that has both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the VIE’s performance; and (2) the obligation to absorb losses and right to receive the returns from the VIE that would be significant to the VIE. See Note 10 for further information on the Company’s consolidated variable interest entities.

Noncontrolling interests in consolidated subsidiaries are defined as “the portion of the equity (net assets) in the subsidiaries not attributable, directly or indirectly, to a parent.” Noncontrolling interests are presented as a separate component of equity in the consolidated balance sheets. In addition, the presentation of net income attributes earnings to shareholders/unitholders (controlling interest) and noncontrolling interests.

Use of Estimates

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the balance sheets and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates and assumptions are reviewed periodically, and the effects of resulting changes are reflected in the consolidated financial statements in the period the changes are deemed to be necessary. Significant estimates made in the accompanying consolidated financial statements include, but are not limited to the following:


•	valuation of real estate securities;


•	valuation of mortgage loan receivables held for sale;


•	allocation of purchase price for acquired real estate;


•	impairment, and useful lives, of real estate;


•	useful lives of intangible assets;


•	valuation of derivative instruments;


•	valuation of deferred tax asset (liability);


•	amounts payable pursuant to the Tax Receivable Agreement;


•	determination of effective yield for recognition of interest income;


•	adequacy of provision for loan losses including the valuation of underlying collateral for collateral dependent loans;


•	determination of other than temporary impairment of real estate securities and investments in and advances to unconsolidated joint ventures;


•	certain estimates and assumptions used in the accrual of incentive compensation and calculation of the fair value of equity compensation issued to employees;


•	determination of the effective tax rate for income tax provision; and

•

certain estimates and assumptions used in the allocation of revenue and expenses for our segment reporting.

Cash and Cash Equivalents

The Company considers all investments with original maturities of three months or less, at the time of acquisition, to be cash equivalents. The Company maintains cash accounts at several financial institutions, which are insured up to a maximum of $250,000 per account as of September 30, 2019 and December 31, 2018. At September 30, 2019 and December 31, 2018, and at various times during the years, the balances exceeded the insured limits.

Restricted Cash

Restricted cash is comprised of accounts the Company maintains with brokers to facilitate financial derivative and repurchase agreement transactions in support of its loan and securities investments and risk management activities. Based on the value of the positions in these accounts and the associated margin requirements, the Company may be required to deposit additional cash into these broker accounts. The cash collateral held by broker is considered restricted cash. Restricted cash also includes tenant security deposits, deposits related to real estate sales and acquisitions and required escrow balances on credit facilities. Prior to January 1, 2017, these amounts were previously recorded in other assets on the Company’s consolidated balance sheets.

Recognition of Operating Lease Income and Tenant Recoveries

The Company adopted ASC Topic 842 on January 1, 2019. The primary impact of applying ASC Topic 842 was the initial recognition of a $3.5 million lease liability and a $3.3 million right-of-use asset (including previously accrued straight line rent) on the Company’s consolidated financial statements, for leases classified as operating leases under ASC Topic 840, primarily for the Company’s corporate headquarters and other identified leases. There is no cumulative effect on retained earnings or other components of equity recognized as of January 1, 2019.

Certain arrangements may contain both lease and non-lease components. The Company determines if an arrangement is, or contains, a lease at contract inception. Only the lease components of these contractual arrangements are subject to the provisions of ASC Topic 842. Any non-lease components are subject to other applicable accounting guidance. We have elected, however, to adopt the optional practical expedient not to separate lease components from non-lease components for accounting purposes. This policy election has been adopted for each of the Company’s leased asset classes existing as of the effective date and subject to the transition provisions of ASC Topic 842, will be applied to all new or modified leases executed on or after January 1, 2019. For contractual arrangements executed in subsequent periods involving a new leased asset class, the Company will determine at contract inception whether it will apply the optional practical expedient to the new leased asset class.

Leases are evaluated for classification as operating or finance leases at the commencement date of the lease. Right-of-use assets and corresponding liabilities are recognized on the Company’s consolidated balance sheet based on the present value of future lease payments relating to the use of the underlying asset during the lease term. Future lease payments include fixed lease payments as well as variable lease payments that depend upon an index or rate using the index or rate at the commencement date and probable amounts owed under residual value guarantees. The amount of future lease payments may be increased to include additional payments related to lease extension, termination, and/or purchase options when the Company has determined, at or subsequent to lease commencement, generally due to limited asset availability or operating commitments, it is reasonably certain of exercising such options.

The Company uses its incremental borrowing rate as the discount rate in determining the present value of future lease payments, unless the interest rate implicit in the lease arrangement is readily determinable. Lease payments that vary based on future usage levels, the nature of leased asset activities, or certain other contingencies, are not included in the measurement of lease right-of-use assets and corresponding liabilities. The Company has elected not to record assets and liabilities on its consolidated balance sheet for lease arrangements with terms of 12 months or less. Tenant recoveries related to reimbursement of real estate taxes, insurance, utilities, repairs and maintenance, and other operating expenses are recognized as revenue in the period during which the applicable expenses are incurred.

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) (“ASU 2016-02”), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either operating leases or financing leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sale-type leases, direct financing leases and operating leases. ASU 2016-02 supersedes the previous lease standard, Leases (Topic 840). In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842 (Leases) (“ASU 2018-10”), which provides narrow amendments to clarify how to apply certain aspects of the new leasing standard. In July 2018, the FASB also issued ASU 2018-11, Leases (Topic 842): Targeted Improvements (“ASU 2018-11”), which provides a new transition method at the adoption date through a cumulative-effect adjustment to the opening balance of retained earnings, prior periods will not require restatement. ASU 2018-11 also provides a new practical expedient for lessors adopting the new lease standard. Lessors have the option to aggregate nonlease components with the related lease component upon adoption of the new standard if the following conditions are met: (1) the timing and pattern of transfer for the nonlease component and the related lease component are the same and (2) the stand-alone lease component would be classified as an operating lease if accounted for separately. In December 2018, the FASB issued ASU 2018-20, Leases (Topic 842) (“ASU 2018-20”), which provides narrow amendments to clarify how to apply certain aspects of the new leasing standard. Each of the standards are effective for the Company on January 1, 2019, with early adoption permitted. In March 2019, the FASB issued ASU 2019-01, Leases (Topic 842): Codification Improvements (“ASU 2019-01”), which aligns the guidance for fair value of the underlying asset by lessors that are not manufacturers or dealers in Topic 842 with that of existing guidance. As a result, the fair value of the underlying asset at lease commencement is its cost, reflecting any volume or trade discounts that may apply. However, if there has been a significant lapse of time between when the underlying asset is acquired and when the lease commences, the definition of fair value in Topic 820, Fair Value Measurement should be applied. ASU 2019-01 also requires lessors within the scope of Topic 942, Financial Services—Depository and Lending, to present all “principal payments received under leases” within investing activities.

The Company adopted ASU 2016-02, ASU 2018-10, ASU 2018-11, ASU 2018-20 and ASU 2019-01, collectively FASB ASC Topic 842, Leases (“ASC Topic 842”), beginning January 1, 2019. The Company adopted ASU Topic 842 using the modified retrospective approach and elected to utilize the Optional Transition Method, which permits the Company to apply the provisions of ASC Topic 842 to leasing arrangements existing at or entered into after January 1, 2019, and present in its financial statements comparative periods prior to January 1, 2019 under the historical requirements of ASC Topic 840. In addition, the Company elected to adopt the package of optional transition-related practical expedients, which among other things, allows the Company to carry forward certain historical conclusions reached under ASC Topic 840 regarding lease identification, classification, and the accounting treatment of initial direct costs. Furthermore, the Company elected not to record assets and liabilities on its consolidated balance sheets for new or existing lease arrangements with terms of 12 months or less.

In March 2017, the FASB issued ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20), (“ASU 2017-08”). The ASU shortens the amortization period for the premium on certain purchased callable debt securities to the earliest call date. Historically, entities generally amortized the premium over the contractual life of the security. The new guidance does not change the accounting for purchased callable debt securities held at a discount; the discount continues to be amortized to maturity. ASU No. 2017-08 is effective for interim and annual reporting periods beginning after December 15, 2018; early adoption is permitted. The guidance calls for a modified retrospective transition approach under which a cumulative-effect adjustment will be made to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The adoption of ASU 2017-08 on January 1, 2019 had no material impact on the Company’s consolidated financial statements.

In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480) and Derivatives and Hedging (Topic 815): I. Accounting for Certain Financial Instruments with Down Round Features; II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception, (“ASU 2017-11”). Part I of this update addresses the complexity of accounting for certain financial instruments with down round features. Down round features are features of certain equity-linked instruments (or embedded features) that result in the strike price being reduced on the basis of the pricing of future equity offerings. Current accounting guidance creates cost and complexity for entities that issue financial instruments (such as warrants and convertible instruments) with down round features that require fair value measurement of the entire instrument or conversion option. Part II of this update addresses the difficulty of navigating Topic 480, Distinguishing Liabilities from Equity, because of the existence of extensive pending content in the FASB Accounting Standards Codification. This pending content is the result of the indefinite deferral of accounting requirements about mandatorily redeemable financial instruments of certain nonpublic entities and certain mandatorily redeemable noncontrolling interests. The amendments in Part II of this update do not have an accounting effect. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. The adoption of ASU 2017-11 on January 1, 2019 had no material impact on the Company’s consolidated financial statements.

In January 2018, the FASB issued ASU 2018-01, Land Easement Practical Expedient for Transition to Topic 842, (“ASU 2018-01”). This ASU provides an optional transition practical expedient that, if elected, would not require companies to reconsider their accounting for existing or expired land easements before adoption of Topic 842 and that were not previously accounted for as leases under Topic 840. This ASU will be effective January 1, 2019 and early adoption is permitted. The adoption of ASU 2018-01 on January 1, 2019, had no material impact on the Company’s consolidated financial statements.

In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220), (“ASU 2018-02”). This ASU allows an entity to elect to reclassify the stranded tax effects related to the Tax Cuts and Jobs Act of 2017 from accumulated other comprehensive income into retained earnings. This ASU will be effective January 1, 2019, and early adoption is permitted. The adoption of ASU 2018-02 on January 1, 2019 had no material impact on the Company’s consolidated financial statements.

In July 2018, the FASB issued ASU 2018-09, Codification Improvements, (“ASU 2018-09”). This standard does not prescribe any new accounting guidance, but instead makes minor improvements and clarifications of several different FASB Accounting Standards Codification areas based on comments and suggestions made by various stakeholders. Certain updates are applicable immediately while others provide for a transition period to adopt as part of the next fiscal year beginning after December 15, 2018. The adoption of ASU 2018-09 had no material impact on the Company’s consolidated financial statements.

Recent Accounting Pronouncements Pending Adoption

In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, (“ASU 2016-13”). The guidance changes the impairment model for most financial assets. The new model uses a forward-looking expected loss method, which will generally result in earlier recognition of allowances for losses. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted for annual and interim periods beginning after December 15, 2018. In November 2018, the FASB issued ASU 2018-19 to clarify that operating lease receivables recorded by lessors are explicitly excluded from the scope of ASU 2016-13. In May 2019, the FASB issued ASU 2019-05 to provide an option to irrevocably elect to measure certain individual financial assets at fair value instead of amortized cost. The Company must apply the amendments in these updates through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company is currently assessing the impact of this standard on the consolidated financial statements. In general, the allowance for credit losses is expected to increase when changing from an incurred loss to expected loss methodology. The models and methodologies that are currently used in estimating the allowance for credit losses are being evaluated to identify the changes necessary to meet the requirements of the new standard.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement, (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, (“ASU 2018-13”). ASU 2018-13 eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of its disclosure framework project. The standard is effective for all entities for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2018-02 to have a material impact on its financial statements and related disclosures.

In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities, (“ASU 2018-17”). ASU 2018-17 requires reporting entities to consider indirect interests held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety for determining whether a decision-making fee is a variable interest. The standard is effective for all entities for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. Entities are required to apply the amendments in ASU 2018-17 retrospectively with a cumulative-effect adjustment to retained earnings at the beginning of the earliest period presented. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements.

In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, (“ASU 2019-04”). ASU 2019-04 clarifies and improves areas of guidance related to the recently issued standards on credit losses (ASU 2016-13), hedging (ASU 2017-12), and recognition and measurement of financial instruments (ASU 2016-01). The amendments generally have the same effective dates as their related standards. If already adopted, the amendments of ASU 2016-01 and ASU 2016-13 are effective for fiscal years beginning after December 15, 2019 and the amendments of ASU 2017-12 are effective as of the beginning of the Company’s next annual reporting period; early adoption is permitted. The Company previously adopted ASU 2016-01 and does not expect the amendments of ASU 2019-04 to have a material impact on its consolidated financial statements.

Any new accounting standards not disclosed above that have been issued or proposed by FASB and that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption.

MORTGAGE LOAN RECEIVABLES (Tables)

9 Months Ended

Sep. 30, 2019

SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]

Schedule of mortgage loan receivables



	Outstanding Face Amount		Carrying Value			Weighted Average Yield (1)		Remaining Maturity (years)

Mortgage loan receivables held for investment, net, at amortized cost:
Mortgage loans held by consolidated subsidiaries:
First mortgage loans(2)	$	3,192,160	$	3,170,788		7.70	%	1.18
Mezzanine loans	148,221		147,602			10.89	%	4.35
Total mortgage loans held by consolidated subsidiaries	3,340,381		3,318,390			7.84	%	1.32
Provision for loan losses	N/A		(17,900		)
Total mortgage loan receivables held for investment, net, at amortized cost	3,340,381		3,300,490
Mortgage loan receivables held for sale:
First mortgage loans	181,905		182,439			5.46	%	9.75
Total	$	3,522,286	$	3,482,929		7.76	%	1.77


(1)	December 31, 2018 LIBOR rates are used to calculate weighted average yield for floating rate loans.

(2)

Includes amounts relating to consolidated variable interest entities. See Note 10.



	Outstanding Face Amount		Carrying Value			Weighted Average Yield (1)		Remaining Maturity (years)

Mortgage loan receivables held for investment, net, at amortized cost:
Mortgage loans held by consolidated subsidiaries:
First mortgage loans(2)	$	3,116,050	$	3,098,241		7.14	%	1.27
Mezzanine loans	133,661		133,202			10.87	%	3.76
Total mortgage loans held by consolidated subsidiaries	3,249,711		3,231,443			7.29	%	1.37
Provision for loan losses	N/A		(18,500		)
Total mortgage loan receivables held for investment, net, at amortized cost	3,249,711		3,212,943
Mortgage loan receivables held for sale:
First mortgage loans	173,957		174,214			4.59	%	9.68
Total	$	3,423,668	$	3,387,157		7.19	%	1.81


(1)	September 30, 2019 London Interbank Offered Rate (“LIBOR”) rates are used to calculate weighted average yield for floating rate loans.


(2)	Includes amounts relating to consolidated variable interest entities. See Note 10.

Summary of mortgage loan receivables by loan type

For the nine months ended September 30, 2019 and 2018, the activity in our loan portfolio was as follows ($ in thousands):



	Mortgage loan receivables held for investment, net, at amortized cost:
	Mortgage loans held by consolidated subsidiaries			Mortgage loans transferred but not considered sold			Provision for loan losses			Mortgage loan receivables held for sale

Balance, December 31, 2018	$	3,318,390		$	—		$	(17,900	)	$	182,439
Origination of mortgage loan receivables	985,825			—			—			554,115
Purchases of mortgage loan receivables	—			—			—			9,934
Repayment of mortgage loan receivables	(1,105,506		)	—			—			(620		)
Proceeds from sales of mortgage loan receivables(1)	—			(15,504		)	—			(558,799		)
Non-cash disposition of loans via foreclosure(2)	(17,611		)	—			—			—
Sale of loans, net	—			—			—			38,589
Transfer between held for investment and held for sale(1)	35,940			15,504			—			(51,444		)
Accretion/amortization of discount, premium and other fees	14,405			—			—			—
Provision for loan losses	—			—			(600		)	—
Balance, September 30, 2019	$	3,231,443		$	—		$	(18,500	)	$	174,214

(1)

During the three months ended March 31, 2019, the Company reclassified from mortgage loan receivables held for sale to mortgage loan receivables held for investment, net, at amortized cost, one loan with an outstanding face amount of $15.4 million, a book value of $15.5 million (fair value at the date of reclassification) and a remaining maturity of 9.8 years, which was sold to the WFCM 2019-C49 securitization trust. Subsequently, the controlling loan interest was sold to the UBS 2019-C16 securitization trust, and as a result, the loan previously sold during the three months ended March 31, 2019 was accounted for as a sale during the six months ended June 30, 2019.


(2)	Refer to Note 5 Real Estate and Related Lease Intangibles, Net for further detail on foreclosure of real estate.



	Mortgage loan receivables held for investment, net, at amortized cost:
	Mortgage loans held by consolidated subsidiaries			Provision for loan losses			Mortgage loan receivables held for sale

Balance, December 31, 2017	$	3,282,462		$	(4,000	)	$	230,180
Origination of mortgage loan receivables	1,240,894			—			1,115,218
Repayment of mortgage loan receivables	(787,167		)	—			(1,324		)
Proceeds from sales of mortgage loan receivables	—			—			(926,402		)
Sale of loans, net(1)	—			—			12,893
Transfer between held for investment and held for sale(2)	55,403			—			(55,403		)
Accretion/amortization of discount, premium and other fees	13,795			—			—
Provision for loan losses(3)	—			(13,600		)	—
Balance, September 30, 2018	$	3,805,387		$	(17,600	)	$	375,162


(1)	Includes $0.5 million of realized losses on loans related to lower of cost or market adjustments for the nine months ended September 30, 2018.

(2)

During the nine months ended September 30, 2018, the Company reclassified from mortgage loan receivables held for sale to mortgage loan receivables held for investment, net, at amortized cost, three loans with a combined outstanding face amount of $57.6 million, a combined book value of $55.4 million (fair value at date of reclassification) and a remaining maturity of 2.5 years. The loans had been recorded at lower of cost or market prior to their reclassification. The discount to fair value is the result of an increase in market interest rates since the loans’ origination and not a deterioration in credit of the borrowers or collateral coverage and the Company expects to collect all amounts due under the loans.

(3)

As further discussed below, during the three and nine months ended September 30, 2018, the Company recorded asset-specific provisions on collateral dependent loans of $10.0 million and $12.7 million, respectively. In addition. the Company records a portfolio-based, general loan loss provision to provide reserves for expected losses over the remaining portfolio of mortgage loan receivables held for investment. During the three and nine months ended September 30, 2018, the Company recorded an additional general reserve of $0.3 million and $0.9 million, respectively.

Schedule of provision for loan losses

Provision for Loan Losses and Non-Accrual Status ($ in thousands)



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018

Allowance for loan losses at beginning of period	$	18,500	$	7,300	$	17,900	$	4,000
Provision for loan losses	—		10,300		600		13,600
Allowance for loan losses at end of period	$	18,500	$	17,600	$	18,500	$	17,600

					September 30, 2019		December 31, 2018

Principal balance of loans on non-accrual status(1)					$	37,161	$	36,850

(1)

Represents two of the Company’s loans, which were originated simultaneously as part of a single transaction and had a carrying value of $26.9 million and one loan with a carrying value of $45.0 million, as further discussed below.

REAL ESTATE SECURITIES (Tables)

9 Months Ended

Sep. 30, 2019

Investments, Debt and Equity Securities [Abstract]

Summary of securities which are classified as available-for-sale

The following is a summary of the Company’s securities at September 30, 2019 and December 31, 2018 ($ in thousands):

September 30, 2019



					Gross Unrealized									Weighted Average
Asset Type	Outstanding Face Amount		Amortized Cost Basis/Purchase Price		Gains		Losses			Carrying Value			# of Securities	Rating (1)	Coupon %		Yield %		Remaining Duration (years)

CMBS(2)	$	1,779,458	$	1,780,233	$	9,012	$	(533	)	$	1,788,712	(3)	139	AAA	3.27	%	3.14	%	2.38
CMBS interest-only(2)(4)	2,139,357		39,961		1,491		(12		)	41,440		(5)	18	AAA	0.49	%	3.65	%	2.61
GNMA interest-only(4)(6)	113,096		2,202		119		(295		)	2,026			12	AA+	0.51	%	9.65	%	2.73
Agency securities(2)	641		652		2		—			654			2	AA+	2.67	%	1.74	%	1.97
GNMA permanent securities(2)	31,760		31,984		811		—			32,795			6	AA+	3.92	%	3.27	%	4.55
Corporate bonds(2)	32,088		31,604		768		—			32,372			1	BB-	3.63	%	4.81	%	1.31
Total debt securities	$	4,096,400	$	1,886,636	$	12,203	$	(840	)	$	1,897,999		178		1.75	%	3.17	%	2.39
Equity securities(7)	N/A		13,720		125		(388		)	13,457			3	N/A	N/A		N/A		N/A
Total real estate securities	$	4,096,400	$	1,900,356	$	12,328	$	(1,228	)	$	1,911,456		181

(1)

Represents the weighted average of the ratings of all securities in each asset type, expressed as an S&P equivalent rating. For each security rated by multiple rating agencies, the highest rating is used. Ratings provided were determined by third-party rating agencies as of a particular date, may not be current and are subject to change (including the assignment of a “negative outlook” or “credit watch”) at any time.


(2)	CMBS, CMBS interest-only securities, Agency securities, GNMA permanent securities and corporate bonds are classified as available-for-sale and reported at fair value with changes in fair value recorded in the current period in other comprehensive income.


(3)	Includes $11.6 million of restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust and are classified as held-to-maturity and reported at amortized cost.


(4)	The amounts presented represent the principal amount of the mortgage loans outstanding in the pool in which the interest-only securities participate.


(5)	Includes $0.8 million of restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust and are classified as held-to-maturity and reported at amortized cost.

(6)

Agency interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings. The Company’s Agency interest-only securities are considered to be hybrid financial instruments that contain embedded derivatives. As a result, the Company has elected to account for them as hybrid instruments in their entirety at fair value with changes in fair value recognized in unrealized gain (loss) on Agency interest-only securities in the consolidated statements of income in accordance with ASC 815.


(7)	The Company has elected to account for equity securities at fair value with changes in fair value recorded in current period earnings.

December 31, 2018



					Gross Unrealized									Weighted Average
Asset Type	Outstanding Face Amount		Amortized Cost Basis		Gains		Losses			Carrying Value			# of Securities	Rating (1)	Coupon %		Yield %		Remaining Duration (years)

CMBS(2)	$	1,258,819	$	1,257,801	$	2,477	$	(7,638	)	$	1,252,640	(3)	138	AAA	3.32	%	3.14	%	2.33
CMBS interest-only(2)(4)	2,373,936		55,534		428		(271		)	55,691		(5)	19	AAA	0.57	%	2.80	%	2.69
GNMA interest-only(4)(6)	135,932		2,862		93		(307		)	2,648			12	AA+	0.51	%	6.30	%	4.11
Agency securities(2)	668		682		—		(20		)	662			2	AA+	2.73	%	1.83	%	2.36
GNMA permanent securities(2)	32,633		32,889		420		(245		)	33,064			6	AA+	3.94	%	3.76	%	5.03
Corporate bonds(2)	55,305		54,257		—		(386		)	53,871			2	BB	4.08	%	5.04	%	2.51
Total debt securities	$	3,857,293	$	1,404,025	$	3,418	$	(8,867	)	$	1,398,576		179		1.54	%	3.19	%	2.40
Equity securities(7)	N/A		13,154		—		(1,604		)	11,550			3	N/A	N/A		N/A		N/A
Total real estate securities	$	3,857,293	$	1,417,179	$	3,418	$	(10,471	)	$	1,410,126		182

(1)

Represents the weighted average of the ratings of all securities in each asset type, expressed as an S&P equivalent rating. For each security rated by multiple rating agencies, the highest rating is used. Ratings provided were determined by third-party rating agencies as of a particular date, may not be current and are subject to change (including the assignment of a “negative outlook” or “credit watch”) at any time.


(2)	CMBS, CMBS interest-only securities, Agency securities, GNMA permanent securities and corporate bonds are classified as available-for-sale and reported at fair value with changes in fair value recorded in the current period in other comprehensive income.


(3)	Includes $11.3 million of restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust and are classified as held-to-maturity and reported at amortized cost.


(4)	The amounts presented represent the principal amount of the mortgage loans outstanding in the pool in which the interest-only securities participate.


(5)	Includes $0.9 million of restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust and are classified as held-to-maturity and reported at amortized cost.

(6)

Agency interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings. The Company’s Agency interest-only securities are considered to be hybrid financial instruments that contain embedded derivatives. As a result, the Company accounts for them as hybrid instruments in their entirety at fair value with changes in fair value recognized in unrealized gain (loss) on Agency interest-only securities in the consolidated statements of income in accordance with ASC 815.

(7)

The Company has elected to account for equity securities at fair value with changes in fair value recorded in current period earnings.

Schedule of fair value of the Company's securities by remaining maturity based upon expected cash flows

The following is a breakdown of the carrying value of the Company’s debt securities by remaining maturity based upon expected cash flows at September 30, 2019 and December 31, 2018 ($ in thousands):

September 30, 2019



Asset Type	Within 1 year		1-5 years		5-10 years		After 10 years		Total

CMBS(1)	$	395,377	$	1,212,074	$	181,261	$	—	$	1,788,712
CMBS interest-only(1)	645		40,795		—		—		41,440
GNMA interest-only(2)	250		1,515		261		—		2,026
Agency securities(1)	—		654		—		—		654
GNMA permanent securities(1)	344		32,451		—		—		32,795
Corporate bonds(1)	—		32,372		—		—		32,372
Total debt securities	$	396,616	$	1,319,861	$	181,522	$	—	$	1,897,999


(1)	CMBS, CMBS interest-only securities, Agency securities, GNMA permanent securities and corporate bonds are classified as available-for-sale and reported at fair value with changes in fair value recorded in the current period in other comprehensive income.


(2)	Agency interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings.

December 31, 2018



Asset Type	Within 1 year		1-5 years		5-10 years		After 10 years		Total

CMBS(1)	$	342,121	$	772,594	$	137,925	$	—	$	1,252,640
CMBS interest-only(1)	1,145		54,546		—		—		55,691
GNMA interest-only(2)	17		2,276		353		2		2,648
Agency securities(1)	—		662		—		—		662
GNMA permanent securities(1)	551		1,048		31,465		—		33,064
Corporate bonds(1)	—		53,871		—		—		53,871
Total debt securities	$	343,834	$	884,997	$	169,743	$	2	$	1,398,576


(1)	CMBS, CMBS interest-only securities, Agency securities, GNMA permanent securities and corporate bonds are classified as available-for-sale and reported at fair value with changes in fair value recorded in the current period in other comprehensive income.


(2)	Agency interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings.

REAL ESTATE AND RELATED LEASE INTANGIBLES, NET (Tables)

9 Months Ended

Sep. 30, 2019

Real Estate [Abstract]

Schedule of real estate properties by category

The following tables present additional detail related to our real estate portfolio, net, including foreclosed properties ($ in thousands):



	September 30, 2019			December 31, 2018

Land	$	197,682		$	195,644
Building	820,783			814,314
In-place leases and other intangibles	159,721			162,002
Less: Accumulated depreciation and amortization	(196,853		)	(173,938		)
Real estate and related lease intangibles, net	$	981,333		$	998,022

Below market lease intangibles, net (other liabilities)	$	(39,087	)	$	(40,367	)

Schedule of depreciation and amortization expense recorded

The following table presents depreciation and amortization expense on real estate recorded by the Company ($ in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018

Depreciation expense(1)	$	7,394	$	8,063	$	22,776	$	24,058
Amortization expense	1,612		2,336		6,342		7,782
Total real estate depreciation and amortization expense	$	9,006	$	10,399	$	29,118	$	31,840

(1)

Depreciation expense on the consolidated statements of income also includes $24 thousand and $18 thousand of depreciation on corporate fixed assets for the three months ended September 30, 2019 and 2018, respectively, and $74 thousand and $56 thousand of depreciation on corporate fixed assets for the nine months ended September 30, 2019 and 2018, respectively.

Schedule of lease intangible assets

The Company’s intangible assets are comprised of in-place leases, favorable leases compared to market leases and other intangibles. The following tables present additional detail related to our intangible assets ($ in thousands):



	September 30, 2019		December 31, 2018

Gross intangible assets(1)	$	159,721	$	162,002
Accumulated amortization	61,056		57,712
Net intangible assets	$	98,665	$	104,290


(1)	Includes $4.6 million and $5.5 million of unamortized favorable lease intangibles which are included in real estate and related lease intangibles, net on the consolidated balance sheets as of September 30, 2019 and December 31, 2018, respectively.



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018

Reduction in operating lease income for amortization of above market lease intangibles acquired	$	(94	)	$	(155	)	$	(727	)	$	(535	)
Increase in operating lease income for amortization of below market lease intangibles acquired	564			500			1,594			1,821

Schedule of expected amortization expense related to the acquired in-place lease intangibles, for property owned

The following table presents expected adjustment to operating lease income and expected amortization expense during the next five years and thereafter related to the above and below market leases and acquired in-place lease and other intangibles for property owned as of September 30, 2019 ($ in thousands):



Period Ending December 31,	Adjustment to Operating Lease Income		Amortization Expense

2019 (last 3 months)	$	263	$	1,601
2020	1,054		6,403
2021	1,054		6,232
2022	1,054		6,232
2023	1,054		6,232
Thereafter	29,981		67,233
Total	$	34,460	$	93,933

Schedule of contractual future minimum rent under leases

The following is a schedule of non-cancellable, contractual, future minimum rent under leases (excluding property operating expenses paid directly by tenant under net leases) at September 30, 2019 ($ in thousands):



Period Ending December 31,	Amount

2019 (last 3 months)	$	21,347
2020	80,401
2021	69,055
2022	65,936
2023	64,106
Thereafter	520,897
Total	$	821,742

Schedule of real estate properties acquired

During the nine months ended September 30, 2018, the Company acquired the following properties ($ in thousands):



Acquisition Date	Type	Primary Location(s)	Purchase Price		Ownership Interest (1)

March 2018	Diversified(2)	Lithia Springs, GA	$	24,466	70.6%
April 2018	Net Lease	Kirbyville, MO	1,156		100.0%
April 2018	Net Lease	Gladwin, MI	1,171		100.0%
April 2018	Net Lease	Foley, MN	1,176		100.0%
April 2018	Net Lease	Moscow Mills, MO	1,237		100.0%
April 2018	Net Lease	Wonder Lake, IL	1,255		100.0%
May 2018	Diversified(3)	Isla Vista, CA	85,087		75.0%

Total real estate acquisitions			$	115,548


(1)	Properties were consolidated as of acquisition date.


(2)	Joint venture partner contributed $2.9 million to the partnership.

(3)

Joint venture partner contributed $4.6 million to the partnership.

During the nine months ended September 30, 2019, the Company acquired the following properties ($ in thousands):



Acquisition Date	Type	Primary Location(s)	Purchase Price/Fair Value on the Date of Foreclosure		Ownership Interest (1)

Purchases of real estate
February 2019	Net Lease	Houghton Lake, MI	$	1,242	100.0%
February 2019	Net Lease	Trenton, MO	1,164		100.0%
April 2019	Net Lease	Centralia, IL	1,242		100.0%
June 2019	Net Lease	Fayette, MO	1,423		100.0%
July 2019	Net Lease	Dexter, MO	1,150		100.0%
July 2019	Net Lease	Caledonia, MI	1,199		100.0%
August 2019	Net Lease	Poseyville, IN	1,220		100.0%
September 2019	Net Lease	Chillicothe, IL	1,445		100.0%
September 2019	Net Lease	Sullivan, IL	1,496		100.0%
September 2019	Net Lease	Becker, MN	1,185		100.0%
September 2019	Net Lease	Adrian, MO	1,138		100.0%
Total purchases of real estate			13,904

Real estate acquired via foreclosure
February 2019	Diversified	Omaha, NE	18,200		100.0%
Total real estate acquired via foreclosure			18,200

Total real estate acquisitions			$	32,104

(1)

Properties were consolidated as of acquisition date.

The purchase prices were allocated to the asset acquisitions during the nine months ended September 30, 2019, as follows ($ in thousands):



	Purchase Price Allocation

Land	$	4,969
Building	25,571
Intangibles	2,309
Below Market Lease Intangibles	(745		)
Total purchase price	$	32,104

The purchase prices were allocated to the asset acquisitions during the nine months ended September 30, 2018, as follows ($ in thousands):



	Purchase Price Allocation

Land	$	40,019
Building	73,794
Intangibles	2,065
Below Market Lease Intangibles	(330		)
Total purchase price	$	115,548

Schedule of properties sold

The Company sold the following properties during the nine months ended September 30, 2019 ($ in thousands):



Sales Date	Type	Primary Location(s)	Net Sales Proceeds		Net Book Value		Realized Gain/(Loss)			Properties	Units Sold	Units Remaining

N/A	Condominium	Las Vegas, NV	$	—	$	—	$	—		—	—	1
Various	Condominium	Miami, FL	4,195		3,796		399			—	14	8
April 2019	Diversified	Wayne, NJ	1,729		4,799		(3,070		)	1	—	—
May 2019	Diversified	Grand Rapids, MI	10,019		8,254		1,765			1	—	—
August 2019	Diversified	Grand Rapids, MI	6,970		4,920		2,050			1	—	—
Totals			$	22,913	$	21,769	$	1,144

The Company sold the following properties during the nine months ended September 30, 2018 ($ in thousands):



Sales Date	Type	Primary Location(s)	Net Sales Proceeds		Net Book Value		Realized Gain/(Loss)			Properties	Units Sold	Units Remaining

Various	Condominium	Las Vegas, NV	$	6,228	$	3,116	$	3,112		—	8	5
Various	Condominium	Miami, FL	4,844		3,987		857			—	18	30
March 2018	Diversified	El Monte, CA	71,807		52,610		19,197		(1)	1	—	—
March 2018	Diversified	Richmond, VA	20,966		11,370		9,596		(2)	1	—	—
September 2018	Diversified	St. Paul, MN	109,275		47,627		61,648		(3)	4	—	—
Totals			$	213,120	$	118,710	$	94,410


(1)	This property had a third party investor. The third party investor has been allocated $7.0 million of the realized gain, which is included in net (income) loss attributable to noncontrolling interest in consolidated joint ventures, for the nine months ended September 30, 2018, on the consolidated statements of income.


(2)	This property had a third party investor. The third party investor has been allocated $0.4 million of the realized gain, which is included in net (income) loss attributable to noncontrolling interest in consolidated joint ventures, for the nine months ended September 30, 2018, on the consolidated statements of income.

(3)

This property had a third party investor. The third party investor has been allocated $7.9 million of the realized gain, which is included in net (income) loss attributable to noncontrolling interest in consolidated joint ventures, for the nine months ended September 30, 2018, on the consolidated statements of income.

Equity Method Investments and Joint Ventures [Abstract]

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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+ Details

INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED JOINT VENTURES (Tables)

9 Months Ended

Sep. 30, 2019

Summary of the Company's investments in unconsolidated joint ventures, which the entity accounts for using the equity method

The following is a summary of the Company’s investments in and advances to unconsolidated joint ventures, which we account for using the equity method, as of September 30, 2019 and December 31, 2018 ($ in thousands):



Entity	September 30, 2019		December 31, 2018

Grace Lake JV, LLC	$	3,799	$	5,316
24 Second Avenue Holdings LLC	47,620		35,038
Investment in unconsolidated joint ventures	$	51,419	$	40,354

Summary of the Company's allocated earnings based on its ownership interests from investment in unconsolidated joint ventures

The following is a summary of the Company’s allocated earnings (losses) based on its ownership interests from investment in unconsolidated joint ventures for the three and nine months ended September 30, 2019 and 2018 ($ in thousands):



	Three Months Ended September 30,					Nine Months Ended September 30,
Entity	2019		2018			2019		2018

Grace Lake JV, LLC	$	517	$	605		$	1,549	$	1,138
24 Second Avenue Holdings LLC	577		(204		)	2,068		(672		)
Earnings (loss) from investment in unconsolidated joint ventures	$	1,094	$	401		$	3,617	$	466

Summary of the combined results from operations of the unconsolidated joint ventures for the period in which the Company had investment interests

The following is a summary of the combined financial position of the unconsolidated joint ventures in which the Company had investment interests as of September 30, 2019 and December 31, 2018 ($ in thousands):



	September 30, 2019		December 31, 2018

Total assets	$	123,871	$	167,837
Total liabilities	80,333		116,667
Partners’/members’ capital	$	43,538	$	51,170

The following is a summary of the combined results from operations of the unconsolidated joint ventures for the period in which the Company had investment interests during the nine months ended September 30, 2019 and 2018 ($ in thousands):



	Three Months Ended September 30,					Nine Months Ended September 30,
	2019			2018		2019		2018

Total revenues	$	3,915		$	4,351	$	14,945	$	13,671
Total expenses	4,595			3,415		12,029		9,788
Net income (loss)	$	(680	)	$	936	$	2,916	$	3,883

DEBT OBLIGATIONS, NET (Tables)

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Schedule of debt obligations

The details of the Company’s debt obligations at September 30, 2019 and December 31, 2018 are as follows ($ in thousands):

September 30, 2019



Debt Obligations	Committed Financing		Debt Obligations Outstanding			Committed but Unfunded		Interest Rate at September 30, 2019(1)	Current Term Maturity	Remaining Extension Options	Eligible Collateral	Carrying Amount of Collateral		Fair Value of Collateral

Committed Loan Repurchase Facility	$	600,000	$	191,031		$	408,969	3.78% - 4.28%	2/24/2022	(2)	(3)	$	283,517	$	283,746
Committed Loan Repurchase Facility	350,000		63,996			286,004		4.25% - 4.60%	5/24/2020	(4)	(5)	100,354		102,616
Committed Loan Repurchase Facility	300,000		211,350			88,650		4.00% - 4.53%	4/10/2020	(6)	(7)	343,448		343,448
Committed Loan Repurchase Facility	300,000		116,043			183,957		3.81% - 4.06%	5/6/2021	(8)	(3)	174,001		174,353
Committed Loan Repurchase Facility	100,000		87,174			12,826		4.02% - 4.28%	7/20/2021	(9)	(3)	135,373		135,606
Committed Loan Repurchase Facility	100,000		90,927			9,073		4.03%	3/26/2020	(10)	(11)	121,899		121,899
Total Committed Loan Repurchase Facilities	1,750,000		760,521			989,479						1,158,592		1,161,668
Committed Securities Repurchase Facility	400,000		85,457			314,543		2.38% - 2.87%	3/4/2021	N/A	(12)	103,547		103,547
Uncommitted Securities Repurchase Facility	N/A (12)		940,070			N/A (13)		2.45% - 3.78%	10/2019 - 12/2019	N/A	(12)	1,047,663		1,047,663		(14)
Total Repurchase Facilities	2,150,000		1,786,048			1,304,022						2,309,802		2,312,878
Revolving Credit Facility	266,430		—			266,430		NA	2/11/2020	(15)	N/A (16)	N/A (16)		N/A (16)
Mortgage Loan Financing	723,313		723,313			—		4.25% - 6.75%	2020 - 2029(17)	N/A	(18)	902,656		1,093,952		(19)
CLO Debt	117,760		117,760		(20)	—		3.40% - 5.62%	2021-2034	N/A	(21)	274,149		274,523
Borrowings from the FHLB	1,945,795		1,076,449			869,346		1.47% - 2.95%	2019 - 2024	N/A	(22)	1,411,022		1,422,246		(23)
Senior Unsecured Notes	1,166,201		1,157,117		(24)	—		5.250% - 5.875%	2021 - 2025	N/A	N/A (25)	N/A (25)		N/A (25)
Total Debt Obligations, Net	$	6,369,499	$	4,860,687		$	2,439,798					$	4,897,629	$	5,103,599


(1)	September 2019 LIBOR rates are used to calculate interest rates for floating rate debt.


(2)	Two additional 12-month periods at Company’s option. No new advances are permitted after the initial maturity date.


(3)	First mortgage commercial real estate loans and senior and pari passu interests therein. It does not include the real estate collateralizing such loans.


(4)	One additional 12-month period at Company’s option.


(5)	First mortgage commercial real estate loans. It does not include the real estate collateralizing such loans.


(6)	One additional 364-day period with Bank’s consent.


(7)	First mortgage and mezzanine commercial real estate loans and senior and pari passu interests therein. It does not include the real estate collateralizing such loans.


(8)	One additional 12-month extension period and two additional 6-month extension periods at Company’s option.


(9)	One additional 12-month extension period at Company’s option. No new advances are permitted after the initial maturity date.


(10)	The Company may extend periodically with lender’s consent. At no time can the maturity of the facility exceed 364 days from the date of determination.


(11)	First mortgage, junior and mezzanine commercial real estate loans, and certain senior and/or pari passu interests therein.


(12)	Commercial real estate securities. It does not include the real estate collateralizing such securities.


(13)	Represents uncommitted securities repurchase facilities for which there is no committed amount subject to future advances.


(14)	Includes $2.3 million of restricted securities under the risk retention rules of Dodd-Frank Act. These securities are accounted for as held-to-maturity and recorded at amortized cost basis.


(15)	Three additional 12-month periods at Company’s option.


(16)	The obligations under the Revolving Credit Facility are guaranteed by the Company and certain of its subsidiaries and secured by equity pledges in certain Company subsidiaries.


(17)	Anticipated repayment dates.


(18)	Certain of our real estate investments serve as collateral for our mortgage loan financing.


(19)	Using undepreciated carrying value of commercial real estate to approximate fair value.


(20)	Presented net of unamortized debt issuance costs of $0.4 million at September 30, 2019.


(21)	First mortgage commercial real estate loans and pari passu interests therein. It does not include the real estate collateralizing such loans.


(22)	First mortgage commercial real estate loans and investment grade commercial real estate securities. It does not include the real estate collateralizing such loans and securities.


(23)	Includes $9.9 million of restricted securities under the risk retention rules of Dodd-Frank Act. These securities are accounted for as held-to-maturity and recorded at amortized cost basis.


(24)	Presented net of unamortized debt issuance costs of $9.1 million at September 30, 2019.


(25)	The obligations under the senior unsecured notes are guaranteed by the Company and certain of its subsidiaries.

December 31, 2018



Debt Obligations	Committed Financing		Debt Obligations Outstanding				Committed but Unfunded		Interest Rate at December 31, 2018(1)	Current Term Maturity	Remaining Extension Options	Eligible Collateral	Carrying Amount of Collateral		Fair Value of Collateral

Committed Loan Repurchase Facility	$	600,000	$	180,597			$	419,403	4.21% - 4.96%	10/1/2020	(2)	(3)	$	262,642	$	261,602
Committed Loan Repurchase Facility	350,000		63,679				286,321		4.68% - 4.98%	5/24/2019	(4)	(5)	87,385		88,762
Committed Loan Repurchase Facility	300,000		120,631				179,369		4.46% - 4.96%	4/7/2019	(6)	(7)	204,747		205,219
Committed Loan Repurchase Facility	300,000		79,886				220,114		4.44% - 4.94%	5/6/2021	(8)	(3)	117,382		117,366
Committed Loan Repurchase Facility	100,000		52,738				47,262		4.58% - 4.96%	7/20/2021	(9)	(3)	72,154		72,154
Committed Loan Repurchase Facility	100,000		—				100,000		NA	12/26/2019	(10)	(11)	—		—
Total Committed Loan Repurchase Facilities	1,750,000		497,531				1,252,469						744,310		745,103
Committed Securities Repurchase Facility	400,000		—				400,000		NA	9/30/2019	N/A	(12)	—		—
Uncommitted Securities Repurchase Facility	N/A (12)		166,154				N/A (13)		2.99% - 4.55%	1/2019 - 3/2019	N/A	(12)	187,803		187,803		(14)(15)
Total Repurchase Facilities	2,150,000		663,685				1,652,469						932,113		932,906
Revolving Credit Facility	266,430		—				266,430		NA	2/11/2019	(16)	N/A (17)	N/A (17)		N/A (17)
Mortgage Loan Financing	743,902		743,902				—		4.25% - 7.00%	2020 - 2028(18)	N/A	(19)	939,362		1,108,968		(20)
CLO Debt	601,543		601,543		(21	)	—		3.34% - 6.06%	2021-2034	N/A	(22)	710,502		710,737
Participation Financing - Mortgage Loan Receivable	2,453		2,453				—		17.00%	6/6/2019	N/A	(3)	2,453		2,453
Borrowings from the FHLB	1,933,522		1,286,000				647,522		1.18% - 3.01%	2019 - 2024	N/A	(23)	1,652,952		1,655,150		(24)
Senior Unsecured Notes	1,166,201		1,154,991		(25)		—		5.250% - 5.875%	2021 - 2025	N/A	N/A (26)	N/A (26)		N/A (26)
Total Debt Obligations	$	6,864,051	$	4,452,574			$	2,566,421					$	4,237,382	$	4,410,214


(1)	December 31, 2018 LIBOR rates are used to calculate interest rates for floating rate debt.


(2)	Two additional 12-month periods at Company’s option. No new advances are permitted after the initial maturity date.


(3)	First mortgage commercial real estate loans and senior and pari passu interests therein. It does not include the real estate collateralizing such loans.


(4)	Two additional 12-month periods at Company’s option.


(5)	First mortgage commercial real estate loans. It does not include the real estate collateralizing such loans.


(6)	One additional 364-day periods at Company’s option and one additional 364-day period with Bank’s consent.


(7)	First mortgage and mezzanine commercial real estate loans and senior pari passu interests therein. It does not include the real estate collateralizing such loans.


(8)	One additional 12-month extension period and two additional 6-month extension periods at Company’s option.


(9)	One additional 12-month extension period at Company’s option. No new advances are permitted after the initial maturity date.


(10)	The Company may extend periodically with lender’s consent. At no time can the maturity of the facility exceed 364 days from the date of determination.


(11)	First mortgage, junior and mezzanine commercial real estate loans, and certain senior and/or pari passu interests therein.


(12)	Commercial real estate securities. It does not include the real estate collateralizing such securities.


(13)	Represents uncommitted securities repurchase facilities for which there is no committed amount subject to future advances.


(14)	Includes $3.0 million of restricted securities under the risk retention rules of Dodd-Frank Act. These securities are accounted for as held-to-maturity and recorded at amortized cost basis.


(15)	Includes $6.0 million of securities purchased in the secondary market of the Company’s October 2017 CLO issuance. These securities are not included in real estate securities but were rather considered a partial retirement of CLO debt.


(16)	Four additional 12-month periods at Company’s option.


(17)	The obligations under the Revolving Credit Facility are guaranteed by the Company and certain of its subsidiaries and secured by equity pledges in certain Company subsidiaries.


(18)	Anticipated repayment dates.


(19)	Certain of our real estate investments serve as collateral for our mortgage loan financing.


(20)	Using undepreciated carrying value of commercial real estate to approximate fair value.


(21)	Presented net of unamortized debt issuance costs of $2.6 million at December 31, 2018.


(22)	First mortgage commercial real estate loans and pari passu interests therein. It does not include the real estate collateralizing such loans.


(23)	First mortgage commercial real estate loans and investment grade commercial real estate securities. It does not include the real estate collateralizing such loans and securities.


(24)	Includes $9.7 million of restricted securities under the risk retention rules of Dodd-Frank Act. These securities are accounted for as held-to-maturity and recorded at amortized cost basis.


(25)	Presented net of unamortized debt issuance costs of $11.2 million at December 31, 2018.


(26)	The obligations under the senior unsecured notes are guaranteed by the Company and certain of its subsidiaries.

Schedule of contractual payments under all borrowings by maturity

The following schedule reflects the Company’s contractual payments under all borrowings by maturity ($ in thousands):



Period ending December 31,	Borrowings by Maturity(1)

2019 (last 3 months)	$	1,039,597
2020	1,052,894
2021	876,649
2022	655,706
2023	559,422
Thereafter	680,935
Subtotal	4,865,203
Debt issuance costs included in senior unsecured notes	(9,084		)
Debt issuance costs included in CLO debt	(394		)
Debt issuance costs included in mortgage loan financing	(380		)
Premiums included in mortgage loan financing(2)	5,342
Total	$	4,860,687


(1)	Contractual payments under current maturities, some of which are subject to extensions. The maturities listed above for 2019 relate to debt obligations that are subject to existing Company controlled extension options for one or more additional one year periods or could be refinanced by other existing facilities as of September 30, 2019.


(2)	Deferred gains on intercompany loans, secured by our own real estate, sold into securitizations. These premiums are amortized as a reduction to interest expense.

DERIVATIVE INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of breakdown of the derivatives outstanding

The following is a breakdown of the derivatives outstanding as of September 30, 2019 and December 31, 2018 ($ in thousands):

September 30, 2019



			Fair Value				Remaining Maturity (years)
Contract Type	Notional		Asset(1)		Liability(1)		Remaining Maturity (years)

Caps
1 Month LIBOR	$	69,571	$	—	$	—	0.61
Futures
5-year Swap	49,200		—		20		0.25
10-year Swap	149,500		—		61		0.25
5-year U.S. Treasury Note	2,200		—		1		0.25
Total futures	200,900		—		82
Credit derivatives
S&P 500 Put Options	6,000		22		—		0.30
Total credit derivatives	6,000		22		—
Total derivatives	$	276,471	$	22	$	82

(1) Shown as derivative instruments, at fair value, in the accompanying consolidated balance sheets.

December 31, 2018



			Fair Value				Remaining Maturity (years)
Contract Type	Notional		Asset(1)		Liability(1)		Remaining Maturity (years)

Caps
1MO LIBOR	$	69,571	$	—	$	—	1.35
Futures
5-year Swap	$	274,900	$	—	$	526	0.25
10-year Swap	227,700		—		436		0.25
5-year U.S. Treasury Note	6,800		—		13		0.25
Total futures	509,400		—		975
Total derivatives	$	578,971	$	—	$	975

(1) Shown as derivative instruments, at fair value, in the accompanying consolidated balance sheets.

Schedule of net realized gains/(losses) and unrealized appreciation/(depreciation) on derivatives

The following table indicates the net realized gains (losses) and unrealized appreciation (depreciation) on derivatives, by primary underlying risk exposure, as included in net result from derivatives transactions in the consolidated statements of operations for the three and nine months ended September 30, 2019 and 2018 ($ in thousands):



	Three Months Ended September 30, 2019									Nine Months Ended September 30, 2019
	Unrealized Gain/(Loss)			Realized Gain/(Loss)			Net Result from Derivative Transactions			Unrealized Gain/(Loss)			Realized Gain/(Loss)			Net Result from Derivative Transactions

Contract Type
Futures	$	(618	)	$	(8,868	)	$	(9,486	)	$	892		$	(36,761	)	$	(35,869	)
Credit Derivatives	(3		)	24			21			(3		)	(84		)	(87		)
Total	$	(621	)	$	(8,844	)	$	(9,465	)	$	889		$	(36,845	)	$	(35,956	)



	Three Months Ended September 30, 2018								Nine Months Ended September 30, 2018
	Unrealized Gain/(Loss)			Realized Gain/(Loss)		Net Result from Derivative Transactions			Unrealized Gain/(Loss)			Realized Gain/(Loss)			Net Result from Derivative Transactions

Contract Type
Futures	$	(940	)	$	8,099	$	7,159		$	(52	)	$	28,985		$	28,933
Swaps	—			—		—			1,403			(848		)	555
Credit Derivatives	(44		)	—		(44		)	5			(337		)	(332		)
Total	$	(984	)	$	8,099	$	7,115		$	1,356		$	27,800		$	29,156

Schedule of offsetting of financial assets

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624163-113959

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5580258-113959

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41620-113959

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579245-113959

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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-Section 50
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624171-113959

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(n)(2))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579240-113959

+ Details

OFFSETTING ASSETS AND LIABILITIES (Tables)

9 Months Ended

Sep. 30, 2019

Offsetting [Abstract]

As of September 30, 2019

Offsetting of Financial Assets and Derivative Assets

($ in thousands)



Description	Gross amounts of recognized assets		Gross amounts offset in the balance sheet		Net amounts of assets presented in the balance sheet		Gross amounts not offset in the balance sheet				Net amount
Description	Gross amounts of recognized assets		Gross amounts offset in the balance sheet		Net amounts of assets presented in the balance sheet		Financial instruments		Cash collateral received/(posted)(1)		Net amount

Derivatives	$	22	$	—	$	22	$	—	$	—	$	22
Total	$	22	$	—	$	22	$	—	$	—	$	22

(1) Included in restricted cash on consolidated balance sheets.

Schedule of offsetting of financial liabilities

As of December 31, 2018

Offsetting of Financial Liabilities and Derivative Liabilities

($ in thousands)



Description	Gross amounts of recognized liabilities		Gross amounts offset in the balance sheet		Net amounts of liabilities presented in the balance sheet		Gross amounts not offset in the balance sheet				Net amount
Description	Gross amounts of recognized liabilities		Gross amounts offset in the balance sheet		Net amounts of liabilities presented in the balance sheet		Financial instruments collateral		Cash collateral posted/(received)		Net amount

Derivatives	$	975	$	—	$	975	$	—	$	975	$	—
Repurchase agreements	663,685		—		663,685		663,685		—		—
Total	$	664,660	$	—	$	664,660	$	663,685	$	975	$	—

(1) Included in restricted cash on consolidated balance sheets.

As of September 30, 2019

Offsetting of Financial Liabilities and Derivative Liabilities

($ in thousands)



Description	Gross amounts of recognized liabilities		Gross amounts offset in the balance sheet		Net amounts of liabilities presented in the balance sheet		Gross amounts not offset in the balance sheet				Net amount
Description	Gross amounts of recognized liabilities		Gross amounts offset in the balance sheet		Net amounts of liabilities presented in the balance sheet		Financial instruments collateral		Cash collateral posted/(received)(1)		Net amount

Derivatives	$	82	$	—	$	82	$	—	$	82	$	—
Repurchase agreements	$	1,786,048	$	—	$	1,786,048	$	1,786,048	$	—	$	—
Total	$	1,786,130	$	—	$	1,786,130	$	1,786,048	$	82	$	—

(1) Included in restricted cash on consolidated balance sheets.

CONSOLIDATED VARIABLE INTEREST ENTITIES (Tables)

9 Months Ended

Sep. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Variable Interest Entities

In addition, the Operating Partnership consolidates two collateralized loan obligation (“CLO”) VIEs with the following aggregate balance sheets ($ in thousands):



	September 30, 2019		December 31, 2018
	Notes 3 & 7		Notes 3 & 7

Mortgage loan receivables held for investment, net, at amortized cost	$	274,149	$	710,502
Accrued interest receivable	1,363		3,921
Other assets(1)	—		81,390
Total assets	$	275,512	$	795,813

Senior and unsecured debt obligations	$	117,760	$	607,440
Accrued expenses	306		1,471
Other liabilities	2		2
Total liabilities	118,068		608,913

Net equity in VIEs (eliminated in consolidation)	157,444		186,900
Total equity	157,444		186,900

Total liabilities and equity	$	275,512	$	795,813

(1)

Primarily consists of loan repayments in transit as of December 31, 2018.

Common stock repurchase activity

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

EQUITY STRUCTURE AND ACCOUNTS (Tables)

9 Months Ended

Sep. 30, 2019

Equity [Abstract]

The following table is a summary of the Company’s repurchase activity of its Class A common stock during the nine months ended September 30, 2019 and 2018 ($ in thousands):



	Shares	Amount(1)

Authorizations remaining as of December 31, 2018		$	41,769
Additional authorizations		—
Repurchases paid	40,065	(637		)
Repurchases unsettled		—
Authorizations remaining as of September 30, 2019		$	41,132

(1) Amount excludes commissions paid associated with share repurchases.



	Shares	Amount(1)

Authorizations remaining as of December 31, 2017		$	41,769
Additional authorizations		—
Repurchases paid	—	—
Repurchases unsettled		—
Authorizations remaining as of September 30, 2018		$	41,769

(1) Amount excludes commissions paid associated with share repurchases.

Schedule of dividends declared and paid

The following table presents dividends declared (on a per share basis) of Class A common stock for the nine months ended September 30, 2019 and 2018:



Declaration Date	Dividend per Share

February 27, 2019	$	0.340
May 30, 2019	0.340
August 22, 2019	0.340
Total	$	1.020

February 27, 2018	$	0.315
May 30, 2018	0.325
September 5, 2018	0.325
Total	$	0.965

Schedule of accumulated other comprehensive Income

The following table presents changes in accumulated other comprehensive income related to the cumulative difference between the fair market value and the amortized cost basis of securities classified as available for sale for the nine months ended September 30, 2019 and 2018 ($ in thousands):



	Accumulated Other Comprehensive Income (Loss)			Accumulated Other Comprehensive Income (Loss) of Noncontrolling Interests			Total Accumulated Other Comprehensive Income (Loss)

December 31, 2018	$	(4,649	)	$	(588	)	$	(5,237	)
Other comprehensive income (loss)	14,935			1,840			16,775
Exchange of noncontrolling interest for common stock	64			(64		)	—
Rebalancing of ownership percentage between Company and Operating Partnership	17			(17		)	—
September 30, 2019	$	10,367		$	1,171		$	11,538



	Accumulated Other Comprehensive Income (Loss)			Accumulated Other Comprehensive Income (Loss) of Noncontrolling Interests			Total Accumulated Other Comprehensive Income (Loss)

December 31, 2017	$	(212	)	$	116		$	(96	)
Other comprehensive income (loss)	(8,230		)	(1,428		)	(9,658		)
Exchange of noncontrolling interest for common stock	(167		)	167			—
Rebalancing of ownership percentage between Company and Operating Partnership	27			(27		)	—
September 30, 2018	$	(8,582	)	$	(1,172	)	$	(9,754	)

EARNINGS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Schedule of the Company's net income and weighted average shares outstanding

The Company’s net income (loss) and weighted average shares outstanding for the three and nine months ended September 30, 2019 and 2018 consist of the following:



	Three Months Ended September 30,				Nine Months Ended September 30,
($ in thousands except share amounts)	2019		2018		2019		2018

Basic Net income (loss) available for Class A common shareholders	$	27,576	$	66,630	$	81,996	$	155,911
Diluted Net income (loss) available for Class A common shareholders	$	27,576	$	74,038	$	81,996	$	177,875
Weighted average shares outstanding
Basic	106,004,152		96,935,986		105,264,752		96,317,513
Diluted	106,603,713		110,650,253		106,232,581		110,482,991

Schedule of calculation of basic and diluted net income per share amounts



	Three Months Ended September 30,					Nine Months Ended September 30,
(In thousands except share amounts)	2019		2018			2019		2018

Basic Net Income (Loss) Per Share of Class A Common Stock
Numerator:
Net income (loss) attributable to Class A common shareholders	$	27,576	$	66,630		$	81,996	$	155,911
Denominator:
Weighted average number of shares of Class A common stock outstanding	106,004,152		96,935,986			105,264,752		96,317,513
Basic net income (loss) per share of Class A common stock	$	0.26	$	0.69		$	0.78	$	1.62

Diluted Net Income (Loss) Per Share of Class A Common Stock
Numerator:
Net income (loss) attributable to Class A common shareholders	$	27,576	$	66,630		$	81,996	$	155,911
Add (deduct) - dilutive effect of:
Amounts attributable to operating partnership’s share of Ladder Capital Corp net income (loss)	—		8,991			—		22,786
Additional corporate tax (expense) benefit	—		(1,583		)	—		(822		)
Diluted net income (loss) attributable to Class A common shareholders	27,576		74,038			81,996		177,875
Denominator:
Basic weighted average number of shares of Class A common stock outstanding	106,004,152		96,935,986			105,264,752		96,317,513
Add - dilutive effect of:
Shares issuable relating to converted Class B common shareholders	—		13,202,202			—		13,800,597
Incremental shares of unvested Class A restricted stock	599,561		512,065			967,829		364,881
Diluted weighted average number of shares of Class A common stock outstanding	106,603,713		110,650,253			106,232,581		110,482,991
Diluted net income (loss) per share of Class A common stock	$	0.26	$	0.67		$	0.77	$	1.61

(1)

For three and nine months ended September 30, 2019, shares issuable relating to converted Class B common shareholders are excluded from the calculation of diluted EPS as the inclusion of such potential common shares in the calculation would be anti-dilutive.

STOCK BASED AND OTHER COMPENSATION PLANS (Tables)

9 Months Ended

Sep. 30, 2019

Share-based Payment Arrangement [Abstract]

Stock based compensation plans summary

The following table summarizes the impact on the consolidated statement of operations of the various stock based compensation plans described in this note ($ in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018

Stock Based Compensation Expense:
Annual Incentive Awards Granted in 2015 with Respect to 2014 Performance	$	—	$	—	$	—	$	172
Annual Incentive Awards Granted in 2016 with Respect to 2015 Performance	—		323		131		971
Annual Incentive Awards Granted in 2017 with Respect to 2016 Performance(1)	280		524		955		1,655
Other 2017 Restricted Stock Awards(1)	25		76		102		257
Annual Incentive Awards Granted in 2017 with Respect to 2017 Performance(1)	596		1,122		1,961		3,325
2018 Restricted Stock Awards	—		95		32		230
Other 2018 Restricted Stock Awards(1)	11		9		31		12
Annual Incentive Awards Granted in 2019 with Respect to 2018 Performance(1)	2,509		—		14,804		—
2019 Restricted Stock Awards	148		—		297		—
Other Employee/Director Awards	6		13		23		45
Total Stock Based Compensation Expense	$	3,575	$	2,162	$	18,336	$	6,667

Phantom Equity Investment Plan	$	343	$	—	$	1,047	$	—
Ladder Capital Corp Deferred Compensation Plan	$	—	$	601	$	—	$	1,519
Bonus Expense	$	6,533	$	9,210	$	21,035	$	26,772


(1)	Includes immediate vesting of retirement eligible employees, including Brian Harris, our Chief Executive Officer.

Summary of the grants

A summary of the grants is presented below:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
	Number of Shares/Options	Weighted Average Fair Value Per Share		Number of Shares	Weighted Average Fair Value Per Share		Number of Shares/Options	Weighted Average Fair Value Per Share		Number of Shares/Options	Weighted Average Fair Value Per Share

Grants - Class A Common Stock (restricted)	23,443	$	16.58	4,720	$	15.89	1,569,694	$	17.54	33,656	$	14.86
Grants - Class A Common Stock (restricted) dividends	—	—		—	—		11,113	16.61		—	—
Stock Options	—	—		—	—		12,073	—		—	—

Schedule of nonvested shares activity

The table below presents the number of unvested shares and outstanding stock options at September 30, 2018 and changes during 2018 of the Class A Common stock and Stock Options of Ladder Capital Corp granted under the 2014 Omnibus Incentive Plan:



	Restricted Stock		Stock Options

Nonvested/Outstanding at December 31, 2017	1,252,365		982,135
Granted	33,656		—
Exercised			—
Vested	(138,216	)
Forfeited	(26,061	)	—
Expired			—
Nonvested/Outstanding at September 30, 2018	1,121,744		982,135

Exercisable at September 30, 2018			929,701

The table below presents the number of unvested shares and outstanding stock options at September 30, 2019 and changes during 2019 of the Class A Common stock and Stock Options of Ladder Capital Corp granted under the 2014 Omnibus Incentive Plan:



	Restricted Stock		Stock Options

Nonvested/Outstanding at December 31, 2018	1,118,194		982,135
Granted	1,580,807		12,073
Exercised			—
Vested	(1,122,107	)
Forfeited	(8,702	)	—
Expired			—
Nonvested/Outstanding at September 30, 2019	1,568,192		994,208

Exercisable at September 30, 2019			994,208

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Summary of fair value

The carrying values and estimated fair values of the Company’s financial instruments, which are both reported at fair value on a recurring basis (as indicated) or amortized cost/par, at September 30, 2019 and December 31, 2018 are as follows ($ in thousands):

September 30, 2019



											Weighted Average
	Outstanding Face Amount			Amortized Cost Basis/Purchase Price			Fair Value			Fair Value Method	Yield %		Remaining Maturity/Duration (years)
Assets:
CMBS(1)	$	1,779,458		$	1,780,233		$	1,788,712		Internal model, third-party inputs	3.14	%	2.38
CMBS interest-only(1)	2,139,357		(2)	39,961			41,440			Internal model, third-party inputs	3.65	%	2.61
GNMA interest-only(3)	113,096		(2)	2,202			2,026			Internal model, third-party inputs	9.65	%	2.73
Agency securities(1)	641			652			654			Internal model, third-party inputs	1.74	%	1.97
GNMA permanent securities(1)	31,760			31,984			32,795			Internal model, third-party inputs	3.27	%	4.55
Corporate bonds(1)	32,088			31,604			32,372			Internal model, third-party inputs	4.81	%	1.31
Equity securities(3)	N/A			13,720			13,457			Observable market prices	N/A		N/A
Mortgage loan receivables held for investment, net, at amortized cost:
Mortgage loan receivables held for investment, net, at amortized cost	3,249,711			3,231,443			3,249,383			Discounted Cash Flow(4)	7.29	%	1.37
Provision for loan losses	N/A			(18,500		)	(18,500		)	(5)	N/A		N/A
Mortgage loan receivables held for sale	173,957			174,214			182,716			Internal model, third-party inputs(6)	4.59	%	9.68
FHLB stock(7)	61,619			61,619			61,619			(7)	5.50	%	N/A
Nonhedge derivatives(1)(8)	6,000			N/A			22			Counterparty quotations	N/A		0.30

Liabilities:
Repurchase agreements - short-term	1,486,049			1,486,049			1,486,049			Discounted Cash Flow(9)	2.65	%	0.18
Repurchase agreements - long-term	299,999			299,999			299,999			Discounted Cash Flow(10)	3.20	%	1.28
Mortgage loan financing	718,351			723,313			748,489			Discounted Cash Flow(10)	4.96	%	1.51
CLO debt	117,760			117,760			117,760			Discounted Cash Flow(9)	4.97	%	5.91
Borrowings from the FHLB	1,076,449			1,076,449			1,084,876			Discounted Cash Flow	2.50	%	2.32
Senior unsecured notes	1,166,201			1,157,117			1,201,973			Broker quotations, pricing services	5.39	%	3.53
Nonhedge derivatives(1)(8)	270,471			N/A			82			Counterparty quotations	N/A		0.25


(1)	Measured at fair value on a recurring basis with the net unrealized gains or losses recorded as a component of other comprehensive income (loss) in equity.


(2)	Represents notional outstanding balance of underlying collateral.


(3)	Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings.


(4)	Fair value for floating rate mortgage loan receivables, held for investment is estimated to approximate the outstanding face amount given the short interest rate reset risk (30 days) and no significant change in credit risk. Fair value for fixed rate mortgage loan receivables, held for investment is measured using a discounted cash flow model.


(5)	Fair value is estimated to equal par value.


(6)	Fair value for mortgage loan receivables, held for sale is measured using a hypothetical securitization model utilizing market data from recent securitization spreads and pricing.


(7)	Fair value of the FHLB stock approximates outstanding face amount as the Company’s captive insurance subsidiary is restricted from trading the stock and can only put the stock back to the FHLB, at the FHLB’s discretion, at par.


(8)	The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts.

(9)

Fair value for repurchase agreement liabilities and CLO debt is estimated to approximate carrying amount primarily due to the short interest rate reset risk (30 days) of the financings and the high credit quality of the assets collateralizing these positions. If the collateral is determined to be impaired, the related financing would be revalued accordingly. There are no impairments on any positions.


(10)	For repurchase agreements - long term and mortgage loan financing, the carrying value approximates the fair value discounting the expected cash flows at current market rates. If the collateral is determined to be impaired, the related financing would be revalued accordingly. There are no impairments on any positions.

December 31, 2018



											Weighted Average
	Outstanding Face Amount			Amortized Cost Basis			Fair Value			Fair Value Method	Yield %		Remaining Maturity/Duration (years)
Assets:
CMBS(1)	$	1,258,819		$	1,257,801		$	1,252,640		Internal model, third-party inputs	3.14	%	2.33
CMBS interest-only(1)	2,373,936		(2)	55,534			55,691			Internal model, third-party inputs	2.80	%	2.69
GNMA interest-only(3)	135,932		(2)	2,862			2,648			Internal model, third-party inputs	6.30	%	4.11
Agency securities(1)	668			682			662			Internal model, third-party inputs	1.83	%	2.36
GNMA permanent securities(1)	32,633			32,889			33,064			Internal model, third-party inputs	3.76	%	5.03
Corporate bonds(1)	55,305			54,257			53,871			Internal model, third-party inputs	5.04	%	2.51
Equity securities(3)	N/A			13,154			11,550			Observable market prices	N/A		N/A
Mortgage loan receivables held for investment, net, at amortized cost:
Mortgage loan receivables held for investment, net, at amortized cost	3,340,381			3,318,390			3,324,588			Discounted Cash Flow(4)	7.84	%	1.32
Provision for loan losses	N/A			(17,900		)	(17,900		)	(5)	N/A		N/A
Mortgage loan receivables held for sale	181,905			182,439			187,870			Internal model, third-party inputs(6)	5.46	%	9.75
FHLB stock(7)	57,915			57,915			57,915			(7)	4.50	%	N/A
Nonhedge derivatives(1)(8)	—			N/A			—			Counterparty quotations	N/A		0.00

Liabilities:
Repurchase agreements - short-term	436,957			436,957			436,957			Discounted Cash Flow(9)	3.42	%	0.23
Repurchase agreements - long-term	226,728			226,728			226,728			Discounted Cash Flow(10)	3.47	%	1.73
Mortgage loan financing	738,825			743,902			735,662			Discounted Cash Flow(10)	5.09	%	2.61
CLO debt	601,543			601,543			601,543			Discounted Cash Flow(9)	4.41	%	9.40
Participation Financing - Mortgage Loan Receivable	2,453			2,453			2,453			Discounted Cash Flow(11)	17.00	%	0.43
Borrowings from the FHLB	1,286,000			1,286,000			1,286,664			Discounted Cash Flow	2.55	%	2.46
Senior unsecured notes	1,166,201			1,154,991			1,111,288			Broker quotations, pricing services	5.39	%	4.28
Nonhedge derivatives(1)(8)	578,971			N/A			975			Counterparty quotations	N/A		0.25


(1)	Measured at fair value on a recurring basis with the net unrealized gains or losses recorded as a component of other comprehensive income (loss) in equity.


(2)	Represents notional outstanding balance of underlying collateral.


(3)	Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings.


(4)	Fair value for floating rate mortgage loan receivables, held for investment is estimated to approximate the outstanding face amount given the short interest rate reset risk (30 days) and no significant change in credit risk. Fair value for fixed rate mortgage loan receivables, held for investment is measured using a discounted cash flow.


(5)	Fair value is estimated to equal par value.


(6)	Fair value for mortgage loan receivables, held for sale is measured using a hypothetical securitization model utilizing market data from recent securitization spreads and pricing.


(7)	Fair value of the FHLB stock approximates outstanding face amount as the Company’s captive insurance subsidiary is restricted from trading the stock and can only put the stock back to the FHLB, at the FHLB’s discretion, at par.


(8)	The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts.

(9)

Fair value for repurchase agreement liabilities and CLO debt is estimated to approximate carrying amount primarily due to the short interest rate reset risk (30 days) of the financings and the high credit quality of the assets collateralizing these positions. If the collateral is determined to be impaired, the related financing would be revalued accordingly. There are no impairments on any positions.


(10)	For repurchase agreements - long term and mortgage loan financing, the carrying value approximates the fair value discounting the expected cash flows at current market rates. If the collateral is determined to be impaired, the related financing would be revalued accordingly. There are no impairments on any positions.


(11)	Fair value for Participation Financing - Mortgage Loan Receivable approximates amortized cost as this is a loan participation to a third party.

Summary of financial assets and liabilities, both reported at fair value on a recurring basis or amortized cost/par

The following table summarizes the Company’s financial assets and liabilities, which are both reported at fair value on a recurring basis (as indicated) or amortized cost/par, at September 30, 2019 and December 31, 2018 ($ in thousands):

September 30, 2019



Financial Instruments Reported at Fair Value on Consolidated Statements of Financial Condition	Outstanding Face Amount			Fair Value
	Outstanding Face Amount			Level 1		Level 2		Level 3			Total

Assets:
CMBS(1)	$	1,767,314		$	—	$	—	$	1,777,085		$	1,777,085
CMBS interest-only(1)	2,128,234		(2)	—		—		40,601			40,601
GNMA interest-only(3)	113,096		(2)	—		—		2,026			2,026
Agency securities(1)	641			—		—		654			654
GNMA permanent securities(1)	31,760			—		—		32,795			32,795
Corporate bonds(1)	32,088			—		—		32,372			32,372
Equity securities	N/A			13,457		—		—			13,457
Nonhedge derivatives(4)	6,000			—		22		—			22
				$	13,457	$	22	$	1,885,533		$	1,899,012
Liabilities:
Nonhedge derivatives(4)	270,471			$	—	$	82	$	—		$	82

Financial Instruments Not Reported at Fair Value on Consolidated Statements of Financial Condition	Outstanding Face Amount			Fair Value
	Outstanding Face Amount			Level 1		Level 2		Level 3			Total

Assets:
Mortgage loan receivable held for investment, net, at amortized cost:
Mortgage loans held by consolidated subsidiaries	$	3,249,711		$	—	$	—	$	3,249,383		$	3,249,383
Provision for loan losses	N/A			—		—		(18,500		)	(18,500		)
Mortgage loan receivable held for sale	173,957			—		—		182,716			182,716
CMBS(5)	12,144			—		—		11,627			11,627
CMBS interest-only(5)	11,123		(2)	—		—		839			839
FHLB stock	61,619			—		—		61,619			61,619
				$	—	$	—	$	3,487,684		$	3,487,684
Liabilities:
Repurchase agreements - short-term	1,486,049			$	—	$	—	$	1,486,049		$	1,486,049
Repurchase agreements - long-term	299,999			—		—		299,999			299,999
Mortgage loan financing	718,351			—		—		748,489			748,489
CLO debt	117,760			—		—		117,760			117,760
Borrowings from the FHLB	1,076,449			—		—		1,084,876			1,084,876
Senior unsecured notes	1,166,201			—		—		1,201,973			1,201,973
				$	—	$	—	$	4,939,146		$	4,939,146


(1)	Measured at fair value on a recurring basis with the net unrealized gains or losses recorded as a component of other comprehensive income (loss) in equity.


(2)	Represents notional outstanding balance of underlying collateral.


(3)	Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings.


(4)	Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings. The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts.


(5)	Restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust, which are classified as held-to-maturity and reported at amortized cost.

December 31, 2018



Financial Instruments Reported at Fair Value on Consolidated Statements of Financial Condition	Outstanding Face Amount			Fair Value
	Outstanding Face Amount			Level 1		Level 2		Level 3			Total

Assets:
CMBS(1)	$	1,246,609		$	—	$	—	$	1,241,334		$	1,241,334
CMBS interest-only(1)	2,362,747		(2)	—		—		54,789			54,789
GNMA interest-only(3)	135,932		(2)	—		—		2,648			2,648
Agency securities(1)	668			—		—		662			662
GNMA permanent securities(1)	32,633			—		—		33,064			33,064
Corporate bonds(1)	55,305			—		—		53,871			53,871
Equity securities	N/A			11,550		—		—			11,550
				$	11,550	$	—	$	1,386,368		$	1,397,918
Liabilities:
Nonhedge derivatives(4)	$	605,871		$	—	$	975	$	—		$	975


Financial Instruments Not Reported at Fair Value on Consolidated Statements of Financial Condition	Outstanding Face Amount			Fair Value
	Outstanding Face Amount			Level 1		Level 2		Level 3			Total

Assets:
Mortgage loan receivable held for investment, net, at amortized cost:
Mortgage loans held by consolidated subsidiaries	$	3,340,381		$	—	$	—	$	3,324,588		$	3,324,588
Provision for loan losses	N/A			—		—		(17,900		)	(17,900		)
Mortgage loan receivables held for sale	181,905			—		—		187,870			187,870
CMBS(5)	12,210			—		—		11,306			11,306
CMBS interest-only(5)	11,189		(2)	—		—		902			902
FHLB stock	57,915			—		—		57,915			57,915
				$	—	$	—	$	3,564,681		$	3,564,681
Liabilities:
Repurchase agreements - short-term	436,957			$	—	$	—	$	436,957		$	436,957
Repurchase agreements - long-term	226,728			—		—		226,728			226,728
Mortgage loan financing	738,825			—		—		735,662			735,662
CLO debt	601,543			—		—		601,543			601,543
Participation Financing - Mortgage Loan Receivable	2,453			—		—		2,453			2,453
Borrowings from the FHLB	1,286,000			—		—		1,286,664			1,286,664
Senior unsecured notes	1,166,201			—		—		1,111,288			1,111,288
				$	—	$	—	$	4,401,295		$	4,401,295


(1)	Measured at fair value on a recurring basis with the net unrealized gains or losses recorded as a component of other comprehensive income (loss) in equity.


(2)	Represents notional outstanding balance of underlying collateral.


(3)	Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings.


(4)	Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings. The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts.

(5)

Restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust, which are classified as held-to-maturity and reported at amortized cost.

Schedule of changes in Level 3 of financial instruments

The following table summarizes changes in Level 3 financial instruments reported at fair value on the consolidated statements of financial condition for the nine months ended September 30, 2019 and 2018 ($ in thousands):



	Nine Months Ended September 30,
Level 3	2019			2018

Balance at January 1,	$	1,385,957		$	1,106,517
Transfer from level 2	—			—
Purchases	1,193,671			303,007
Sales	(533,811		)	(306,109		)
Paydowns/maturities	(178,402		)	(93,185		)
Amortization of premium/discount	(9,333		)	(17,842		)
Unrealized gain/(loss)	16,813			(9,203		)
Realized gain/(loss) on sale(1)	10,639			(4,896		)
Balance at September 30,	$	1,885,534		$	978,289


(1)	Includes realized losses on securities recorded as other than temporary impairments.

Schedule of quantitative information

The following is quantitative information about significant unobservable inputs in our Level 3 measurements for those assets and liabilities measured at fair value on a recurring basis ($ in thousands):

September 30, 2019



Financial Instrument	Carrying Value			Valuation Technique	Unobservable Input	Minimum		Weighted Average		Maximum

CMBS(1)	$	1,788,712		Discounted cash flow	Yield (4)	1.68	%	3.1	%	20.55	%
					Duration (years)(5)	0.00		1.54		7.10
CMBS interest-only(1)	41,440		(2)	Discounted cash flow	Yield (4)	1.79	%	3.73	%	6.35	%
					Duration (years)(5)	0.08		2.61		3.85
					Prepayment speed (CPY)(5)	100.00		100.00		100.00
GNMA interest-only(3)	2,026		(2)	Discounted cash flow	Yield (4)	(7.19	)%	14.44	%	44.47	%
					Duration (years)(5)	0.00		2.78		8.61
					Prepayment speed (CPJ)(5)	5.00		11.57		15.00
Agency securities(1)	654			Discounted cash flow	Yield (4)	—	%	1.43	%	1.85	%
					Duration (years)(5)	0.00		2.46		3.17
GNMA permanent securities(1)	32,795			Discounted cash flow	Yield (4)	3.43	%	18.72	%	84.30	%
					Duration (years)(5)	1.15		7.76		13.99
Corporate bonds(1)	32,372			Discounted cash flow	Yield (4)	2.79	%	2.79	%	2.79	%
					Duration (years)(5)	1.05		1.05		1.05
Total	$	1,897,999


(1)	CMBS, CMBS interest-only securities, Agency securities, GNMA construction securities, GNMA permanent securities and corporate bonds are classified as available-for-sale and reported at fair value with changes in fair value recorded in the current period in other comprehensive income.


(2)	The amounts presented represent the principal amount of the mortgage loans outstanding in the pool in which the interest-only securities participate.


(3)	Agency interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings.

Sensitivity of the Fair Value to Changes in the Unobservable Inputs


(4)	Significant increase (decrease) in the unobservable input in isolation would result in significantly lower (higher) fair value measurement.


(5)	Significant increase (decrease) in the unobservable input in isolation would result in either a significantly lower or higher (lower or higher) fair value measurement depending on the structural features of the security in question.

December 31, 2018



Financial Instrument	Carrying Value			Valuation Technique	Unobservable Input	Minimum		Weighted Average		Maximum

CMBS(1)	$	1,252,640		Discounted cash flow	Yield (3)	—	%	3.54	%	21.67	%
					Duration (years)(4)	0.00		2.50		7.78
CMBS interest-only(1)	55,691		(2)	Discounted cash flow	Yield (3)	0.87	%	4.71	%	8.11	%
					Duration (years)(4)	0.14		2.96		6.86
					Prepayment speed (CPY)(4)	100.00		100.00		100.00
GNMA interest-only(3)	2,648		(2)	Discounted cash flow	Yield (4)	1.21	%	5.54	%	10.21	%
					Duration (years)(5)	0.04		3.13		4.77
					Prepayment speed (CPJ)(5)	5.00		6.58		15.00
Agency securities(1)	662			Discounted cash flow	Yield (4)	—	%	2.1	%	2.84	%
					Duration (years)(5)	0.00		2.83		3.82
GNMA permanent securities(1)	33,064			Discounted cash flow	Yield (4)	—	%	3.51	%	4	%
					Duration (years)(5)	0.00		5.62		5.88
Corporate bonds(1)	53,871			Discounted cash flow	Yield (4)	5.3	%	5.35	%	5.46	%
					Duration (years)(5)	1.94		2.19		2.70
Total	$	1,398,576


(1)	CMBS, CMBS interest-only securities, Agency securities, GNMA construction securities, GNMA permanent securities and corporate bonds are classified as available-for-sale and reported at fair value with changes in fair value recorded in the current period in other comprehensive income.


(2)	The amounts presented represent the principal amount of the mortgage loans outstanding in the pool in which the interest-only securities participate.


(3)	Agency interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings.

Sensitivity of the Fair Value to Changes in the Unobservable Inputs


(4)	Significant increase (decrease) in the unobservable input in isolation would result in significantly lower (higher) fair value measurement.

(5)

Significant increase (decrease) in the unobservable input in isolation would result in either a significantly lower or higher (lower or higher) fair value measurement depending on the structural features of the security in question.

Fair value write-downs to assets carried at fair value on a nonrecurring basis

The following table summarizes the fair value write-downs to assets carried at fair value on a nonrecurring basis ($ in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Impairment of real estate
Real estate, net(1)(2)	$	—	$	—	$	1,350	$	—

(1)

The write down to fair value was recorded based on contracted sales price and classified as Level 2 of the fair valuation hierarchy. On May 1, 2019, the Company completed the sale of the property recognizing $3.9 million of operating lease income, $3.5 million realized loss on sale of real estate, net and $0.4 million of depreciation and amortization expense, resulting in a $20 thousand loss on sale of real estate, net.

(2)

Impairment is discussed in further detail in Note 5, Real Estate and Related Lease Intangibles, Net.

SEGMENT REPORTING (Tables)

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Schedule of Company's performance evaluation by segment

The Company evaluates performance based on the following financial measures for each segment ($ in thousands):



	Loans			Securities			Real Estate(1)			Corporate/Other(2)				Company Total

Three months ended September 30, 2019
Interest income	$	66,422		$	15,515		$	7		$	307			$	82,251
Interest expense	(12,063		)	(5,632		)	(9,646		)	(24,056		)		(51,397		)
Net interest income (expense)	54,359			9,883			(9,639		)	(23,749		)		30,854
Provision for loan losses	—			—			—			—				—
Net interest income (expense) after provision for loan losses	54,359			9,883			(9,639		)	(23,749		)		30,854

Operating lease income	—			—			24,405			—				24,405
Sale of loans, net	11,247			—			—			—				11,247
Realized gain (loss) on securities	—			3,396			—			—				3,396
Unrealized gain (loss) on equity securities	—			254			—			—				254
Unrealized gain (loss) on Agency interest-only securities	—			16			—			—				16
Realized gain on sale of real estate, net	—			—			2,082			—				2,082
Fee and other income	3,839			428			—			899				5,166
Net result from derivative transactions	(6,557		)	(2,908		)	—			—				(9,465		)
Earnings (loss) from investment in unconsolidated joint ventures	—			—			1,094			—				1,094
Total other income (loss)	8,529			1,186			27,581			899				38,195

Salaries and employee benefits	—			—			—			(14,319		)		(14,319		)
Operating expenses	—			—			—			(5,314		)	(3)	(5,314		)
Real estate operating expenses	—			—			(6,270		)	—				(6,270		)
Fee expense	(1,264		)	(92		)	(700		)	—				(2,056		)
Depreciation and amortization	—			—			(9,005		)	(25		)		(9,030		)
Total costs and expenses	(1,264		)	(92		)	(15,975		)	(19,658		)		(36,989		)

Income tax (expense) benefit	—			—			—			(1,112		)		(1,112		)
Segment profit (loss)	$	61,624		$	10,977		$	1,967		$	(43,620	)		$	30,948

Total assets as of September 30, 2019	$	3,387,157		$	1,911,456		$	1,032,752		$	288,509			$	6,619,874



	Loans			Securities			Real Estate(1)			Corporate/Other(2)				Company Total

Three months ended September 30, 2018
Interest income	$	81,779		$	8,541		$	6		$	60			$	90,386
Interest expense	(17,232		)	(1,482		)	(9,213		)	(23,549		)		(51,476		)
Net interest income (expense)	64,547			7,059			(9,207		)	(23,489		)		38,910
Provision for loan losses	(10,300		)	—			—			—				(10,300		)
Net interest income (expense) after provision for loan losses	54,247			7,059			(9,207		)	(23,489		)		28,610

Operating lease income	—			—			24,997			—				24,997
Sale of loans, net	1,861			—			—			—				1,861
Realized gain (loss) on securities	—			(2,554		)	—			—				(2,554		)
Unrealized gain (loss) on Agency interest-only securities	—			142			—			—				142
Realized gain on sale of real estate, net	—			—			63,704			—				63,704
Fee and other income	3,895			—			—			956				4,851
Net result from derivative transactions	3,741			3,374			—			—				7,115
Earnings (loss) from investment in unconsolidated joint ventures	—			—			401			—				401
Gain (loss) on extinguishment/defeasance of debt	—			—			(4,323		)	—				(4,323		)
Total other income (loss)	9,497			962			84,779			956				96,194

Salaries and employee benefits	—			—			—			(15,792		)		(15,792		)
Operating expenses	61			—			—			(5,525		)	(3)	(5,464		)
Real estate operating expenses	—			—			(7,152		)	—				(7,152		)
Fee expense	(928		)	(91		)	(292		)	—				(1,311		)
Depreciation and amortization	—			—			(10,398		)	(19		)		(10,417		)
Total costs and expenses	(867		)	(91		)	(17,842		)	(21,336		)		(40,136		)

Income tax (expense) benefit	—			—			—			(1,204		)		(1,204		)
Segment profit (loss)	$	62,877		$	7,930		$	57,730		$	(45,073	)		$	83,464

Total assets as of December 31, 2018	$	3,482,929		$	1,410,126		$	1,038,376		$	341,441			$	6,272,872



	Loans			Securities			Real Estate(1)			Corporate/Other(2)				Company Total

Nine months ended September 30, 2019
Interest income	$	209,369		$	43,844		$	21		$	806			$	254,040
Interest expense	(41,043		)	(12,250		)	(27,620		)	(74,102		)		(155,015		)
Net interest income (expense)	168,326			31,594			(27,599		)	(73,296		)		99,025
Provision for loan losses	(600		)	—			—			—				(600		)
Net interest income (expense) after provision for loan losses	167,726			31,594			(27,599		)	(73,296		)		98,425

Operating lease income	—			—			81,106			—				81,106
Sale of loans, net	38,589			—			—			—				38,589
Realized gain (loss) on securities	—			10,726			—			—				10,726
Unrealized gain (loss) on equity securities	—			1,341			—			—				1,341
Unrealized gain (loss) on Agency interest-only securities	—			38			—			—				38
Realized gain on sale of real estate, net	—			—			963			—				963
Impairment of real estate	—			—			(1,350		)	—				(1,350		)
Fee and other income	13,095			1,165			7			2,780				17,047
Net result from derivative transactions	(20,273		)	(15,683		)	—			—				(35,956		)
Earnings (loss) from investment in unconsolidated joint ventures	—			—			3,617			—				3,617
Gain (loss) on extinguishment of debt	—			—			(1,070		)	—				(1,070		)
Total other income (loss)	31,411			(2,413		)	83,273			2,780				115,051

Salaries and employee benefits	—			—			—			(52,800		)		(52,800		)
Operating expenses	—			—			—			(16,727		)	(3)	(16,727		)
Real estate operating expenses	—			—			(17,776		)					(17,776		)
Fee expense	(3,516		)	(280		)	(1,155		)	—				(4,951		)
Depreciation and amortization	—			—			(29,118		)	(74		)		(29,192		)
Total costs and expenses	(3,516		)	(280		)	(48,049		)	(69,601		)		(121,446		)

Income tax (expense) benefit	—			—			—			(478		)		(478		)
Segment profit (loss)	$	195,621		$	28,901		$	7,625		$	(140,595	)		$	91,552

Total assets as of September 30, 2019	$	3,387,157		$	1,911,456		$	1,032,752		$	288,509			$	6,619,874



	Loans			Securities			Real Estate(1)			Corporate/Other(2)				Company Total

Nine months ended September 30, 2018
Interest income	$	228,273		$	25,217		$	16		$	316			$	253,822
Interest expense	(46,286		)	(3,423		)	(25,799		)	(69,098		)		(144,606		)
Net interest income (expense)	181,987			21,794			(25,783		)	(68,782		)		109,216
Provision for loan losses	(13,600		)	—			—			—				(13,600		)
Net interest income (expense) after provision for loan losses	168,387			21,794			(25,783		)	(68,782		)		95,616

Operating lease income	—			—			79,306			—				79,306
Sale of loans, net	12,893			—			—			—				12,893
Realized gain (loss) on securities	—			(4,896		)	—			—				(4,896		)
Unrealized gain (loss) on Agency interest-only securities	—			456			—			—				456
Realized gain on sale of real estate, net	—			—			96,341			—				96,341
Fee and other income	10,823			72			3,416			3,268				17,579
Net result from derivative transactions	14,516			14,640			—			—				29,156
Earnings (loss) from investment in unconsolidated joint ventures	—			—			466			—				466
Gain (loss) on extinguishment of debt	(69		)	—			(4,323		)	—				(4,392		)
Total other income (loss)	38,163			10,272			175,206			3,268				226,909

Salaries and employee benefits	—			—			—			(46,754		)		(46,754		)
Operating expenses	61			—			—			(16,669		)	(3)	(16,608		)
Real estate operating expenses	—			—			(23,806		)					(23,806		)
Fee expense	(2,160		)	(297		)	(496		)	—				(2,953		)
Depreciation and amortization	—			—			(31,840		)	(56		)		(31,896		)
Total costs and expenses	(2,099		)	(297		)	(56,142		)	(63,479		)		(122,017		)

Income tax (expense) benefit	—			—			—			(5,679		)		(5,679		)
Segment profit (loss)	$	204,451		$	31,769		$	93,281		$	(134,672	)		$	194,829

Total assets as of December 31, 2018	$	3,482,929		$	1,410,126		$	1,038,376		$	341,441			$	6,272,872


(1)	Includes the Company’s investment in unconsolidated joint ventures that held real estate of $51.4 million and $40.4 million as of September 30, 2019 and December 31, 2018, respectively.

(2)

Corporate/Other represents all corporate level and unallocated items including any intercompany eliminations necessary to reconcile to consolidated Company totals. This segment also includes the Company’s investment in unconsolidated joint ventures and strategic investments that are not related to the other reportable segments above, including the Company’s investment in FHLB stock of $61.6 million and $57.9 million as of September 30, 2019 and December 31, 2018, respectively, the Company’s deferred tax asset (liability) of $(4.7) million and $2.3 million as of September 30, 2019 and December 31, 2018, respectively and the Company’s senior unsecured notes of $1.2 billion as of September 30, 2019 and December 31, 2018.

(3)

Includes $3.0 million and $9.1 million of professional fees for the three and nine months ended September 30, 2019, respectively. Includes $2.9 million and $8.7 million of professional fees for the three and nine months ended September 30, 2018, respectively.

ORGANIZATION AND OPERATIONS (Details)	Sep. 30, 2019
LCFH
ORGANIZATION AND OPERATIONS
Ownership interest in LCFH	89.80%

SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Sep. 30, 2019	Jan. 01, 2019
Out-of-Period Adjustment Related to Prior Years
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Increase in tenant real estate tax recoveries on net lease property	$ 1.1
Accounting Standards Update 2016-02
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Operating lease liability		$ 2.7	$ 3.5
Operating lease, right-of-use asset		$ 2.7	$ 3.3

MORTGAGE LOAN RECEIVABLES - Schedule of Mortgage Loans (Details) - USD ($)
$ in Thousands

9 Months Ended

12 Months Ended

Sep. 30, 2019

Dec. 31, 2018

Sep. 30, 2018

Dec. 31, 2017

SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]

$ 3,423,668

$ 3,522,286

^[1]

(18,500)

(17,900)

$ 3,387,157

$ 3,482,929

7.19%

7.76%

SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]

1 year 9 months 21 days

1 year 9 months 7 days

First mortgage loans

Carrying Value gross, consumer and commercial real estate

$ 3,116,050

$ 3,192,160

$ 3,098,241

$ 3,170,788

7.14%

7.70%

SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]

1 year 3 months 7 days

1 year 2 months 4 days

Mezzanine loans

Carrying Value gross, consumer and commercial real estate

$ 133,661

$ 148,221

$ 133,202

$ 147,602

10.87%

10.89%

Mortgage loans held by consolidated subsidiaries

3 years 9 months 3 days

4 years 4 months 6 days

SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]

Carrying Value gross, consumer and commercial real estate

$ 3,249,711

$ 3,340,381

$ 3,231,443

$ 3,318,390

7.29%

7.84%

Total mortgage loan receivables held for investment, net, at amortized cost

1 year 4 months 13 days

1 year 3 months 25 days

SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]

$ 3,249,711

$ 3,340,381

(18,500)

(17,900)

$ (17,600)

$ (4,000)

SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]

3,212,943

3,300,490

First mortgage loans

173,957

181,905

$ 174,214

$ 182,439

4.59%

5.46%

SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward]

9 years 8 months 4 days

9 years 9 months

[1]	Includes amounts relating to consolidated variable interest entities. See Note 10.

MORTGAGE LOAN RECEIVABLES - Additional Information (Details)		3 Months Ended			9 Months Ended
	Mar. 31, 2018 USD ($)	Sep. 30, 2019 USD ($) loan	Dec. 31, 2018 USD ($) loan	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($) loan	Sep. 30, 2018 USD ($)
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Unamortized discounts included in mortgage loan receivables held for investment, at amortized cost		$ 100,000	$ 500,000		$ 100,000
Provision for loan losses		0		$ 10,300,000	600,000	$ 13,600,000
Loans nonaccrual status, amount		$ 37,161,000	$ 36,850,000		$ 37,161,000
Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Direct capitalization rate	4.70%				4.60%
Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of mortgage loans impaired \| loan		3	3		3
Direct capitalization rate	5.00%				4.90%
Total mortgage loan receivables held for investment, net, at amortized cost
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loans receivable with variable rates of interest		$ 2,500,000,000	$ 2,500,000,000		$ 2,500,000,000
Loans receivable with variable rates of interest		78.40%	75.40%		78.40%
Loans receivable with variable rates of interest, subject to interest rate floors		100.00%	100.00%		100.00%
Total mortgage loan receivables held for investment, net, at amortized cost \| Two Of Company Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number or loans in default \| loan					2
Loans in default, carrying value		$ 26,900,000			$ 26,900,000
Loan reserve amount	$ 2,700,000
Total mortgage loan receivables held for investment, net, at amortized cost \| One Of Company Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Provision for loan losses				10,000,000.0		$ 12,700,000
Loans in default, carrying value			$ 45,000,000.0
Total mortgage loan receivables held for investment, net, at amortized cost \| One Of Company Loans \| Series A
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loans in default, carrying value			35,000,000.0
Total mortgage loan receivables held for investment, net, at amortized cost \| One Of Company Loans \| Series B
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loans in default, carrying value			$ 10,000,000.0
Total mortgage loan receivables held for investment, net, at amortized cost \| One Of Company Loans \| Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Percentage of equity kicker not subject to investment			19.00%
Total mortgage loan receivables held for investment, net, at amortized cost \| One Of Company Loans \| Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Percentage of equity kicker not subject to investment			25.00%
Total mortgage loan receivables held for investment, net, at amortized cost \| Asset Specific Reserve, Company Loan
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan reserve amount				$ 10,000,000.0
First mortgage loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loans receivable with fixed rates of interest		$ 174,000,000.0	$ 182,400,000		$ 174,000,000.0
Percentage of loans receivable with fixed rates of interest		100.00%	100.00%		100.00%
Loan on non-accrual status
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loans nonaccrual status, amount		$ 0	$ 0		$ 0

MORTGAGE LOAN RECEIVABLES - Activity in Loan Portfolio (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2019

Mar. 31, 2019

Sep. 30, 2018

Sep. 30, 2019

Sep. 30, 2018

^[1]

$ (17,900)

$ 11,247

$ 1,861

38,589

$ 12,893

Loans held for sale transferred loan held for investment, book value

^[1]

(18,500)

15,400

57,600

Combined book value

$ 15,500

55,400

$ 55,400

Mortgage loans held by consolidated subsidiaries

9 years 9 months 18 days

2 years 6 months

Loan loss provision

0

10,300

600

$ 13,600

SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward]

Mortgage loans receivable, beginning balance

$ 3,318,390

3,318,390

3,282,462

Origination of mortgage loan receivables

985,825

1,240,894

Purchases of mortgage loan receivables

0

Repayment of mortgage loan receivables

(1,105,506)

(787,167)

Non-cash disposition of loans via foreclosure

(17,611)

Transfer between held for investment and held for sale

35,940

55,403

Accretion/amortization of discount, premium and other fees

14,405

13,795

Mortgage loans receivable, ending balance

3,231,443

3,805,387

3,231,443

3,805,387

Mortgage loans transferred but not considered sold

SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward]

Mortgage loans receivable, beginning balance

0

Purchases of mortgage loan receivables

0

Proceeds from sales of mortgage loan receivables

(15,504)

Transfer between held for investment and held for sale

15,504

Mortgage loans receivable, ending balance

0

Total mortgage loan receivables held for investment, net, at amortized cost

SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward]

(17,900)

(4,000)

(600)

(13,600)

Total mortgage loan receivables held for investment, net, at amortized cost | One Of Company Loans

(18,500)

(17,600)

(18,500)

(17,600)

SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward]

Loan loss provision

10,000

12,700

Reserve based on targeted percentage level in portfolio

300

Total mortgage loan receivables held for investment, net, at amortized cost | Two Of Company Loans

SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward]

Reserve based on targeted percentage level in portfolio

900

First mortgage loans

SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward]

Mortgage loans receivable, beginning balance

$ 182,439

182,439

230,180

Origination of mortgage loan receivables

554,115

1,115,218

Purchases of mortgage loan receivables

9,934

Repayment of mortgage loan receivables

(620)

(1,324)

Proceeds from sales of mortgage loan receivables

(558,799)

(926,402)

Non-cash disposition of loans via foreclosure

0

Transfer between held for investment and held for sale

38,589

12,893

(51,444)

(55,403)

Mortgage loans receivable, ending balance

$ 174,214

375,162

$ 174,214

375,162

Realized losses

$ 500

[1]	Includes amounts relating to consolidated variable interest entities. See Note 10.

MORTGAGE LOAN RECEIVABLES - Provision for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Allowance for Loan and Lease Losses [Roll Forward]
Provision for loan losses at beginning of period	$ 18,500	$ 7,300	$ 17,900	$ 4,000
Provision for loan losses	0	10,300	600	13,600
Provision for loan losses at end of period	18,500	$ 17,600	18,500	$ 17,600
Principal balance of loans on non-accrual status	$ 37,161		$ 37,161		$ 36,850

REAL ESTATE SECURITIES - Summary of Securities (Details)
$ in Thousands

9 Months Ended

12 Months Ended

Sep. 30, 2019

USD ($)

security

Dec. 31, 2018

USD ($)

security

Debt Securities, Available-for-sale [Line Items]

$ 4,096,400

$ 3,857,293

1,886,636

1,404,025

12,203

3,418

(840)

(8,867)

$ 1,897,999

$ 1,398,576

178

179

1.75%

1.54%

3.17%

3.19%

Number of equity securities | security

2 years 4 months 20 days

2 years 4 months 24 days

3

$ 1,900,356

$ 1,417,179

12,328

3,418

(1,228)

(10,471)

Total number of Securities | security

^[1]

$ 1,911,456

$ 1,410,126

181

182

CMBS

Debt Securities, Available-for-sale [Line Items]

$ 1,779,458

$ 1,258,819

1,780,233

1,257,801

9,012

2,477

(533)

(7,638)

$ 1,788,712

$ 1,252,640

139

138

3.27%

3.32%

3.14%

Risk retention requirement, amount

2 years 4 months 17 days

2 years 3 months 29 days

$ 11,600

$ 11,300

CMBS interest-only

Debt Securities, Available-for-sale [Line Items]

2,139,357

2,373,936

39,961

55,534

1,491

428

(12)

(271)

$ 41,440

$ 55,691

18

19

0.49%

0.57%

3.65%

2.80%

Risk retention requirement, amount

2 years 7 months 9 days

2 years 8 months 8 days

$ 800

$ 900

GNMA interest-only

Debt Securities, Available-for-sale [Line Items]

113,096

135,932

2,202

2,862

119

93

(295)

(307)

$ 2,026

$ 2,648

12

0.51%

9.65%

6.30%

Debt Securities, Available-for-sale [Line Items]

2 years 8 months 23 days

4 years 1 month 9 days

Agency securities

$ 641

$ 668

652

682

2

0

0

(20)

$ 654

$ 662

2

2.67%

2.73%

1.74%

1.83%

GNMA permanent securities

1 year 11 months 19 days

2 years 4 months 9 days

Debt Securities, Available-for-sale [Line Items]

$ 31,760

$ 32,633

31,984

32,889

811

420

0

(245)

$ 32,795

$ 33,064

6

3.92%

3.94%

3.27%

3.76%

Debt Securities, Available-for-sale [Line Items]

4 years 6 months 18 days

5 years 10 days

Corporate bonds

$ 32,088

$ 55,305

31,604

54,257

768

0

0

(386)

$ 32,372

$ 53,871

1

2

3.63%

4.08%

4.81%

5.04%

Debt Securities, Available-for-sale [Line Items]

1 year 3 months 21 days

2 years 6 months 3 days

Equity securities

$ 13,720

$ 13,154

125

0

(388)

(1,604)

$ 13,457

$ 11,550

[1]	Includes amounts relating to consolidated variable interest entities. See Note 10.

REAL ESTATE SECURITIES - Securities by Remaining Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Within 1 year	$ 396,616	$ 343,834
1-5 years	1,319,861	884,997
5-10 years	181,522	169,743
After 10 years	0	2
Total	1,897,999	1,398,576
CMBS
Debt Securities, Available-for-sale [Line Items]
Within 1 year	395,377	342,121
1-5 years	1,212,074	772,594
5-10 years	181,261	137,925
After 10 years	0	0
Total	1,788,712	1,252,640
CMBS interest-only
Debt Securities, Available-for-sale [Line Items]
Within 1 year	645	1,145
1-5 years	40,795	54,546
5-10 years	0	0
After 10 years	0	0
Total	41,440	55,691
GNMA interest-only
Debt Securities, Available-for-sale [Line Items]
Within 1 year	250	17
1-5 years	1,515	2,276
5-10 years	261	353
After 10 years	0	2
Total	2,026	2,648
Agency securities
Debt Securities, Available-for-sale [Line Items]
Within 1 year	0	0
1-5 years	654	662
5-10 years	0	0
After 10 years	0	0
Total	654	662
GNMA permanent securities
Debt Securities, Available-for-sale [Line Items]
Within 1 year	344	551
1-5 years	32,451	1,048
5-10 years	0	31,465
After 10 years	0	0
Total	32,795	33,064
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Within 1 year	0	0
1-5 years	32,372	53,871
5-10 years	0	0
After 10 years	0	0
Total	$ 32,372	$ 53,871

REAL ESTATE SECURITIES - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Investments, Debt and Equity Securities [Abstract]
Unrealized gain (loss) on equity securities	$ 0	$ 0	$ 100,000	$ 100,000
Other than temporary impairment losses included in consolidated statements of income	$ 100,000	$ 600,000	$ 100,000	$ 2,200,000

REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Schedule of Real Estate Portfolio (Details) - USD ($)
$ in Thousands

Sep. 30, 2019

Dec. 31, 2018

Less: Accumulated depreciation and amortization

$ (196,853)

$ (173,938)

Real estate and related lease intangibles, net

^[1]

981,333

998,022

Below market lease intangibles, net (other liabilities)

(39,087)

(40,367)

In-place leases and other intangibles

Real estate

159,721

162,002

Land

Real estate

197,682

195,644

Building

Disposal Groups, Including Discontinued Operations [Line Items]

Real estate

$ 820,783

$ 814,314

[1]	Includes amounts relating to consolidated variable interest entities. See Note 10.

REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Additional Information (Details) - USD ($) $ in Thousands				3 Months Ended			9 Months Ended
	May 01, 2019	Feb. 06, 2019	Jan. 10, 2019	Sep. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Feb. 28, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Foreclosed properties held in real estate				$ 23,900			$ 23,900			$ 6,300
Proceeds from lease prepayments			$ 10,000
Mortgage loan and financing related to property sales		$ 6,600
Gain (loss) on extinguishment/defeasance of debt		$ (1,100)		0		$ (4,323)	(1,070)	$ (4,392)
Impairment of real estate				0	$ 1,400	0	1,350	0
Operating lease income	$ 3,900			24,405			81,106
Loss on sale of real estate	3,500
Depreciation and amortization	400			9,030		10,417	29,192	$ 31,896
Loss on sale of real estate	$ 20
Unbilled rent receivables				1,000			1,000			800
Unencumbered real estates				90,800			90,800			58,600
Real estate operating income				1,100			2,100
Real estate acquired through foreclosure				18,200			18,200
Unamortized discounts included in mortgage loan receivables held for investment, at amortized cost				(100)			$ (100)			$ (500)
Weighted average amortization period for intangible assets acquired							38 years 3 months 18 days	18 years 6 months
Revenues from acquisitions				167		2,000	$ 246	$ 3,400
Net earnings (loss)				(1,000)		$ 700	(2,500)	$ 1,500
Omaha, NE
Business Acquisition [Line Items]
Real estate acquired through foreclosure				18,200			18,200		$ 18,200
Real Estate Acquired in Satisfaction of Debt
Business Acquisition [Line Items]
Loans in default, no losses expected				17,800			17,800
Accrued interest							200
Unamortized discounts included in mortgage loan receivables held for investment, at amortized cost				$ 100			$ 100
Assets Leased to Others
Business Acquisition [Line Items]
Property book value					5,600
Accumulated depreciation and amortization					$ 2,700

REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Schedule of Depreciation and Amortization Expense on Real Estate (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Real Estate [Abstract]
Depreciation expense	$ 7,394	$ 8,063	$ 22,776	$ 24,058
Amortization expense	1,612	2,336	6,342	7,782
Total real estate depreciation and amortization expense	9,006	10,399	29,118	31,840
Depreciation on corporate fixed assets	$ 24	$ 18	$ 74	$ 56

REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Unamortized Favorable Lease Intangibles (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Business Acquisition [Line Items]
Gross intangible assets	$ 159,721		$ 159,721		$ 162,002
Accumulated amortization	61,056		61,056		57,712
Net intangible assets	98,665		98,665		104,290
Increase in operating lease income for amortization of below market lease intangibles acquired	564	$ 500	1,594	$ 1,821
Unamortized favorable lease intangibles	4,600		4,600		$ 5,500
Above Market Leases
Business Acquisition [Line Items]
Reduction in operating lease income for amortization of above market lease intangibles acquired	$ (94)	$ (155)	$ (727)	$ (535)

REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Expected Future Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Total	$ 98,665	$ 104,290
Adjustment to Operating Lease Income
Finite-Lived Intangible Assets [Line Items]
2019 (last 3 months)	263
2020	1,054
2021	1,054
2022	1,054
2023	1,054
Thereafter	29,981
Total	34,460
Amortization Expense
Finite-Lived Intangible Assets [Line Items]
2019 (last 3 months)	1,601
2020	6,403
2021	6,232
2022	6,232
2023	6,232
Thereafter	67,233
Total	$ 93,933

REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Future Minimum Rental Payments Receivable (Details) $ in Thousands	Sep. 30, 2019 USD ($)
Real Estate [Abstract]
2019 (last 3 months)	$ 21,347
2020	80,401
2021	69,055
2022	65,936
2023	64,106
Thereafter	520,897
Total	$ 821,742

REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Schedule of Real Estate Properties Acquired (Details) - USD ($) $ in Thousands	1 Months Ended									8 Months Ended	9 Months Ended
	Sep. 30, 2019	Aug. 31, 2019	Jul. 31, 2019	Jun. 30, 2019	Apr. 30, 2019	Feb. 28, 2019	May 31, 2018	Apr. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2019	Sep. 30, 2018
Business Acquisition [Line Items]
Purchase Price										$ 13,904	$ 32,104	$ 115,548
Real estate acquired through foreclosure	$ 18,200									$ 18,200	$ 18,200
Lithia Springs, GA \| Diversified
Business Acquisition [Line Items]
Purchase Price									$ 24,466
Ownership Interest												70.60%
Lithia Springs, GA \| Diversified \| Corporate Joint Venture
Business Acquisition [Line Items]
Purchase Price												$ 2,900
Kirbyville, MO \| Net Lease
Business Acquisition [Line Items]
Purchase Price								$ 1,156
Ownership Interest												100.00%
Gladwin, MI \| Net Lease
Business Acquisition [Line Items]
Purchase Price								1,171
Ownership Interest												100.00%
Foley, MN \| Net Lease
Business Acquisition [Line Items]
Purchase Price								1,176
Ownership Interest												100.00%
Moscow Mills, MO \| Net Lease
Business Acquisition [Line Items]
Purchase Price								1,237
Ownership Interest												100.00%
Wonder Lake, IL \| Net Lease
Business Acquisition [Line Items]
Purchase Price								$ 1,255
Ownership Interest												100.00%
Isla Vista, CA \| Diversified
Business Acquisition [Line Items]
Purchase Price							$ 85,087
Ownership Interest												75.00%
Isla Vista, CA \| Diversified \| Corporate Joint Venture
Business Acquisition [Line Items]
Purchase Price												$ 4,600
Houghton Lake, MI
Business Acquisition [Line Items]
Purchase Price						$ 1,242
Ownership Interest	100.00%									100.00%	100.00%
Trenton, MO
Business Acquisition [Line Items]
Purchase Price						1,164
Ownership Interest	100.00%									100.00%	100.00%
Centralia, IL
Business Acquisition [Line Items]
Purchase Price					$ 1,242
Ownership Interest	100.00%									100.00%	100.00%
Fayette, MO
Business Acquisition [Line Items]
Purchase Price				$ 1,423
Ownership Interest	100.00%									100.00%	100.00%
Dexter, MO
Business Acquisition [Line Items]
Purchase Price			$ 1,150
Ownership Interest	100.00%									100.00%	100.00%
Caledonia, MI
Business Acquisition [Line Items]
Purchase Price			$ 1,199
Ownership Interest	100.00%									100.00%	100.00%
Poseyville, IN
Business Acquisition [Line Items]
Purchase Price		$ 1,220
Ownership Interest	100.00%									100.00%	100.00%
Chillicothe, IL
Business Acquisition [Line Items]
Purchase Price	$ 1,445
Ownership Interest	100.00%									100.00%	100.00%
Sullivan, IL
Business Acquisition [Line Items]
Purchase Price	$ 1,496
Ownership Interest	100.00%									100.00%	100.00%
Becker, MN
Business Acquisition [Line Items]
Purchase Price	$ 1,185
Ownership Interest	100.00%									100.00%	100.00%
Adrian, MO
Business Acquisition [Line Items]
Purchase Price	$ 1,138
Ownership Interest	100.00%									100.00%	100.00%
Omaha, NE
Business Acquisition [Line Items]
Real estate acquired through foreclosure	$ 18,200					$ 18,200				$ 18,200	$ 18,200
Ownership Interest	100.00%									100.00%	100.00%

REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Schedule of Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	8 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019	Sep. 30, 2018
Real Estate [Abstract]
Land	$ 4,969	$ 4,969	$ 40,019
Building	25,571	25,571	73,794
Intangibles	2,309	2,309	2,065
Below Market Lease Intangibles	(745)	(745)	(330)
Purchase Price	$ 13,904	$ 32,104	$ 115,548

REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Real Estate Properties Sold (Details)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2019

USD ($)

property

Sep. 30, 2018

USD ($)

property

Sep. 30, 2019

USD ($)

property

Sep. 30, 2018

USD ($)

property

Dec. 31, 2018

USD ($)

$ 10,794

$ 153,398

^[1]

$ 981,333

981,333

$ 998,022

Disposal Groups, Including Discontinued Operations [Line Items]

2,082

$ 63,704

963

96,341

2019 Disposal Properties

22,913

21,769

2019 Disposal Properties | Condominium | Las Vegas, NV

1,144

Disposal Groups, Including Discontinued Operations [Line Items]

0

$ 0

0

$ 0

0

0

2019 Disposal Properties | Condominium | Miami, FL

1

Disposal Groups, Including Discontinued Operations [Line Items]

$ 4,195

$ 3,796

3,796

$ 399

0

14

2019 Disposal Properties | Diversified | Wayne, NJ

8

Disposal Groups, Including Discontinued Operations [Line Items]

$ 1,729

$ 4,799

4,799

$ (3,070)

1

0

2019 Disposal Properties | Diversified | Grand Rapids, MI

0

Disposal Groups, Including Discontinued Operations [Line Items]

$ 10,019

$ 8,254

8,254

$ 1,765

1

0

2019 Disposal Properties | Diversified | Grand Rapids, MI

0

Disposal Groups, Including Discontinued Operations [Line Items]

$ 6,970

$ 4,920

4,920

$ 2,050

1

0

Disposal Groups, Including Discontinued Operations [Line Items]

0

2018 Disposal Properties

213,120

118,710

2018 Disposal Properties | Condominium | Las Vegas, NV

94,410

Disposal Groups, Including Discontinued Operations [Line Items]

6,228

$ 3,116

3,116

$ 3,112

0

8

2018 Disposal Properties | Condominium | Miami, FL

5

Disposal Groups, Including Discontinued Operations [Line Items]

$ 4,844

$ 3,987

3,987

$ 857

0

18

2018 Disposal Properties | Diversified | El Monte, CA

30

Disposal Groups, Including Discontinued Operations [Line Items]

$ 71,807

$ 52,610

52,610

$ 19,197

1

0

2018 Disposal Properties | Diversified | El Monte, CA | Third Party Investor

0

Disposal Groups, Including Discontinued Operations [Line Items]

2018 Disposal Properties | Diversified | Richmond, VA

$ 7,000

Disposal Groups, Including Discontinued Operations [Line Items]

20,966

$ 11,370

11,370

$ 9,596

1

0

2018 Disposal Properties | Diversified | Richmond, VA | Third Party Investor

0

Disposal Groups, Including Discontinued Operations [Line Items]

2018 Disposal Properties | Diversified | St. Paul, MN

$ 400

Disposal Groups, Including Discontinued Operations [Line Items]

109,275

$ 47,627

47,627

$ 61,648

4

0

2018 Disposal Properties | Diversified | St. Paul, MN | Third Party Investor

0

Disposal Groups, Including Discontinued Operations [Line Items]

Schedule of Equity Method Investments [Line Items]

$ 7,900

[1]	Includes amounts relating to consolidated variable interest entities. See Note 10.

INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED JOINT VENTURES - Additional Information (Details)

1 Months Ended

3 Months Ended

9 Months Ended

Apr. 30, 2012

Sep. 30, 2019

USD ($)

property

Sep. 30, 2018

USD ($)

Sep. 30, 2019

USD ($)

property

Sep. 30, 2018

USD ($)

Mar. 31, 2019

USD ($)

Dec. 31, 2018

USD ($)

Mar. 22, 2013

Investments in and advances to unconsolidated joint ventures

^[1]

$ 51,419,000

$ 40,354,000

Distributions from operations of investment in unconsolidated joint ventures

3,067,000

$ 0

Income (expenses) from investment

(4,595,000)

$ (3,415,000)

(12,029,000)

(9,788,000)

Grace Lake JV, LLC

Schedule of Equity Method Investments [Line Items]

Investments in and advances to unconsolidated joint ventures

$ 3,799,000

5,316,000

Percentage of equity kicker received with right to convert upon capital event

25.00%

Preferred return used to determine distribution of excess cash flow

8.25%

Percentage of distribution of all excess cash flows and all disposition proceeds upon any sale entitled after consideration of preferred return and return of equity remaining in the property to operating partner

25.00%

Percentage of investment of operating partner

81.00%

Distributions from operations of investment in unconsolidated joint ventures

$ 3,100,000

1,300,000

Grace Lake JV, LLC | LP Units

Schedule of Equity Method Investments [Line Items]

Ownership interest

19.00%

Grace Lake JV, LLC | Limited liability company

Schedule of Equity Method Investments [Line Items]

Ownership interest

19.00%

24 Second Avenue Holdings LLC

Schedule of Equity Method Investments [Line Items]

Investments in and advances to unconsolidated joint ventures

$ 47,620,000

35,038,000

Income (expenses) from investment

$ 600,000

(200,000)

2,100,000

(700,000)

Interest costs capitalized

$ 400,000

$ 100,000

$ 1,100,000

24 Second Avenue Holdings LLC | Apartment Building

Schedule of Equity Method Investments [Line Items]

Number of real estate properties | property

30

Number of real estate properties, under contract | property

1

Real estate properties, under contract

$ 1,200,000

24 Second Avenue Holdings LLC | Apartment Building | Real Estate Property Sold

Schedule of Equity Method Investments [Line Items]

Number of real estate properties, under contract | property

17

Real estate properties, under contract

$ 47,300,000

24 Second Avenue Holdings LLC | Other

Schedule of Equity Method Investments [Line Items]

Number of real estate properties | property

1

24 Second Avenue Holdings LLC | Mezzanine Loan

Schedule of Equity Method Investments [Line Items]

Committed amount on credit agreement

$ 6,500,000

24 Second Avenue Holdings LLC | Co-venturer

Schedule of Equity Method Investments [Line Items]

Loans payable outstanding from unconsolidated joint venture

$ 46,700,000

24 Second Avenue Holdings LLC | Co-venturer | Construction Loan

Schedule of Equity Method Investments [Line Items]

Common equity interest

35,000,000.0

Preferred equity position

35,000,000.0

Loan refinance

50,400,000

Committed amount on credit agreement

$ 48,100,000

Remaining capital commitment to operating partner

$ 0

Maximum | 24 Second Avenue Holdings LLC | Apartment Building

Schedule of Equity Method Investments [Line Items]

Real estate properties, under contract, deposit

15.00%

[1]	Includes amounts relating to consolidated variable interest entities. See Note 10.

INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED JOINT VENTURES - Investments in Unconsolidated Joint Ventures (Details) - USD ($)
$ in Thousands

Sep. 30, 2019

Dec. 31, 2018

Schedule of Equity Method Investments [Line Items]

Schedule of Equity Method Investments [Line Items]

^[1]

$ 51,419

$ 40,354

Grace Lake JV, LLC

24 Second Avenue Holdings LLC

3,799

5,316

Schedule of Equity Method Investments [Line Items]

$ 47,620

$ 35,038

[1]	Includes amounts relating to consolidated variable interest entities. See Note 10.

INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED JOINT VENTURES - Summary of Allocated Earnings (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Schedule of Equity Method Investments [Line Items]
Earnings (loss) from investment in unconsolidated joint ventures	$ 1,094	$ 401	$ 3,617	$ 466
Grace Lake JV, LLC
Schedule of Equity Method Investments [Line Items]
Earnings (loss) from investment in unconsolidated joint ventures	517	605	1,549	1,138
24 Second Avenue Holdings LLC
Schedule of Equity Method Investments [Line Items]
Earnings (loss) from investment in unconsolidated joint ventures	$ 577	$ (204)	$ 2,068	$ (672)

INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED JOINT VENTURES - Results from Operations of the Unconsolidated Joint Ventures (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Financial Position
Total assets	$ 123,871		$ 123,871		$ 167,837
Total liabilities	80,333		80,333		116,667
Partners’/members’ capital	43,538		43,538		$ 51,170
Results from Operations
Total revenues	3,915	$ 4,351	14,945	$ 13,671
Total expenses	4,595	3,415	12,029	9,788
Net income (loss)	$ (680)	$ 936	$ 2,916	$ 3,883

DEBT OBLIGATIONS, NET - Schedule of Company's Debt Obligations (Details) $ in Thousands		9 Months Ended	12 Months Ended
	May 24, 2019	Sep. 30, 2019 USD ($) Extension	Dec. 31, 2018 USD ($) Extension	Dec. 27, 2018 USD ($)	Dec. 21, 2017 USD ($)	Oct. 17, 2017 USD ($)
Assets Sold under Agreements to Repurchase [Line Items]
Debt Obligations Outstanding		$ 1,786,048	$ 663,685
Debt obligations		4,860,687
Carrying Amount of Collateral		0	0
Committed Loan Repurchase Facility
Assets Sold under Agreements to Repurchase [Line Items]
Committed Financing		1,750,000	1,750,000	$ 100,000
Debt Obligations Outstanding		760,521	497,531
Committed but Unfunded		989,479	1,252,469
Carrying Amount of Collateral		1,158,592	744,310
Fair Value of Collateral		1,161,668	745,103
Length of additional extension maturity periods	1 year
Committed Loan Repurchase Facility \| 10/1/2020
Assets Sold under Agreements to Repurchase [Line Items]
Committed Financing			600,000
Debt Obligations Outstanding			180,597
Committed but Unfunded			419,403
Carrying Amount of Collateral			262,642
Fair Value of Collateral			$ 261,602
Number of extension maturity periods \| Extension			2
Length of extension options			12 months
Committed Loan Repurchase Facility \| 2/24/2022
Assets Sold under Agreements to Repurchase [Line Items]
Committed Financing		600,000
Debt Obligations Outstanding		191,031
Committed but Unfunded		408,969
Carrying Amount of Collateral		283,517
Fair Value of Collateral		$ 283,746
Number of extension maturity periods \| Extension		2
Length of extension options		12 months
Committed Loan Repurchase Facility \| 5/24/2020
Assets Sold under Agreements to Repurchase [Line Items]
Committed Financing		$ 350,000
Debt Obligations Outstanding		63,996
Committed but Unfunded		286,004
Carrying Amount of Collateral		100,354
Fair Value of Collateral		$ 102,616
Number of extension maturity periods \| Extension		1
Length of extension options		12 months
Committed Loan Repurchase Facility \| 5/24/2019
Assets Sold under Agreements to Repurchase [Line Items]
Committed Financing			$ 350,000
Debt Obligations Outstanding			63,679
Committed but Unfunded			286,321
Carrying Amount of Collateral			87,385
Fair Value of Collateral			$ 88,762
Number of extension maturity periods \| Extension			2
Length of extension options			12 months
Committed Loan Repurchase Facility \| 4/10/2020
Assets Sold under Agreements to Repurchase [Line Items]
Committed Financing		$ 300,000
Debt Obligations Outstanding		211,350
Committed but Unfunded		88,650
Carrying Amount of Collateral		343,448
Fair Value of Collateral		$ 343,448
Number of extension maturity periods \| Extension		1
Length of extension options		364 days
Committed Loan Repurchase Facility \| 4/7/2019
Assets Sold under Agreements to Repurchase [Line Items]
Committed Financing			$ 300,000
Debt Obligations Outstanding			120,631
Committed but Unfunded			179,369
Carrying Amount of Collateral			204,747
Fair Value of Collateral			$ 205,219
Number of extension maturity periods \| Extension			1
Length of extension options			364 days
Number of additional extension maturity periods \| Extension			1
Additional length of period of extension options			364 days
Committed Loan Repurchase Facility \| 5/6/2021
Assets Sold under Agreements to Repurchase [Line Items]
Committed Financing		$ 300,000	$ 300,000
Debt Obligations Outstanding		116,043	79,886
Committed but Unfunded		183,957	220,114
Carrying Amount of Collateral		174,001	117,382
Fair Value of Collateral		$ 174,353	$ 117,366
Number of extension maturity periods \| Extension		1	1
Length of extension options		12 months	12 months
Number of additional extension maturity periods \| Extension		2	2
Length of additional extension maturity periods		6 months	6 months
Committed Loan Repurchase Facility \| 7/20/2021
Assets Sold under Agreements to Repurchase [Line Items]
Committed Financing		$ 100,000	$ 100,000
Debt Obligations Outstanding		87,174	52,738
Committed but Unfunded		12,826	47,262
Carrying Amount of Collateral		135,373	72,154
Fair Value of Collateral		$ 135,606	$ 72,154
Number of extension maturity periods \| Extension		1	1
Length of extension options		12 months	12 months
Committed Loan Repurchase Facility \| 12/26/2019
Assets Sold under Agreements to Repurchase [Line Items]
Committed Financing			$ 100,000
Debt Obligations Outstanding			0
Committed but Unfunded			100,000
Carrying Amount of Collateral			0
Fair Value of Collateral			0
Committed Loan Repurchase Facility \| 3/26/2020
Assets Sold under Agreements to Repurchase [Line Items]
Committed Financing		$ 100,000
Debt Obligations Outstanding		90,927
Committed but Unfunded		$ 9,073
Interest rate		4.03%
Carrying Amount of Collateral		$ 121,899
Fair Value of Collateral		121,899
Committed Securities Repurchase Facility
Assets Sold under Agreements to Repurchase [Line Items]
Committed Financing		400,000
Committed Securities Repurchase Facility \| 3/4/2021
Assets Sold under Agreements to Repurchase [Line Items]
Committed Financing		400,000
Debt Obligations Outstanding		85,457
Committed but Unfunded		314,543
Carrying Amount of Collateral		103,547
Fair Value of Collateral		103,547
Committed Securities Repurchase Facility \| 9/30/2019
Assets Sold under Agreements to Repurchase [Line Items]
Committed Financing			400,000
Debt Obligations Outstanding			0
Committed but Unfunded			400,000
Carrying Amount of Collateral			0
Fair Value of Collateral			0
Uncommitted Securities Repurchase Facility \| Various Date
Assets Sold under Agreements to Repurchase [Line Items]
Debt Obligations Outstanding		940,070	166,154
Carrying Amount of Collateral		1,047,663	187,803
Fair Value of Collateral		1,047,663	187,803
Restricted securities held-to-maturity		2,300	3,000
Securities phased in secondary market			6,000
Total Repurchase Facilities
Assets Sold under Agreements to Repurchase [Line Items]
Committed Financing		2,150,000	2,150,000
Debt Obligations Outstanding		1,786,048	663,685
Committed but Unfunded		1,304,022	1,652,469
Carrying Amount of Collateral		2,309,802	932,113
Fair Value of Collateral		2,312,878	932,906
Revolving Credit Facility \| 2/11/2020
Assets Sold under Agreements to Repurchase [Line Items]
Committed Financing		266,430
Debt Obligations Outstanding		0
Committed but Unfunded		$ 266,430
Number of extension maturity periods \| Extension		3
Length of extension options		12 months
Revolving Credit Facility \| 2/11/2019
Assets Sold under Agreements to Repurchase [Line Items]
Committed Financing			266,430
Debt Obligations Outstanding			0
Committed but Unfunded			$ 266,430
Number of extension maturity periods \| Extension			4
Length of extension options			12 months
Mortgage Loan Financing \| Various Date
Assets Sold under Agreements to Repurchase [Line Items]
Committed Financing		$ 723,313	$ 743,902
Debt Obligations Outstanding		723,313	743,902
Committed but Unfunded		0	0
Carrying Amount of Collateral		902,656	939,362
Fair Value of Collateral		1,093,952	1,108,968
CLO Debt \| Various Date
Assets Sold under Agreements to Repurchase [Line Items]
Committed Financing		117,760	601,543
Debt Obligations Outstanding		117,760	601,543
Committed but Unfunded		0	0
Carrying Amount of Collateral		274,149	710,502		$ 431,500	$ 456,900
Fair Value of Collateral		274,523	710,737
Unamortized debt issuance costs		400	2,600
Participation Financing - Mortgage Loan Receivable
Assets Sold under Agreements to Repurchase [Line Items]
Debt Obligations Outstanding		0	2,500
Participation Financing - Mortgage Loan Receivable \| 6/6/2019
Assets Sold under Agreements to Repurchase [Line Items]
Committed Financing			2,453
Debt Obligations Outstanding			2,453
Committed but Unfunded			$ 0
Interest rate			17.00%
Carrying Amount of Collateral			$ 2,453
Fair Value of Collateral			2,453
Borrowings from the FHLB \| Various Date
Assets Sold under Agreements to Repurchase [Line Items]
Committed Financing		1,945,795	1,933,522
Debt Obligations Outstanding		1,076,449	1,286,000
Committed but Unfunded		869,346	647,522
Carrying Amount of Collateral		1,411,022	1,652,952
Fair Value of Collateral		1,422,246	1,655,150
Restricted securities held-to-maturity		9,900	9,700
Senior Unsecured Notes
Assets Sold under Agreements to Repurchase [Line Items]
Unamortized debt issuance costs		9,084
Senior Unsecured Notes \| Various Date
Assets Sold under Agreements to Repurchase [Line Items]
Debt issued		1,166,201	1,166,201
Senior Unsecured Notes		1,157,117	1,154,991
Committed but Unfunded		0	0
Unamortized debt issuance costs		9,100	11,200
Total Debt Obligations
Assets Sold under Agreements to Repurchase [Line Items]
Debt issued		6,369,499	6,864,051
Debt obligations		4,860,687	4,452,574
Committed but Unfunded		2,439,798	2,566,421
Carrying Amount of Collateral		4,897,629	4,237,382
Fair Value of Collateral		$ 5,103,599	$ 4,410,214
Minimum \| Committed Loan Repurchase Facility \| 10/1/2020
Assets Sold under Agreements to Repurchase [Line Items]
Interest rate			4.21%
Minimum \| Committed Loan Repurchase Facility \| 2/24/2022
Assets Sold under Agreements to Repurchase [Line Items]
Interest rate		3.78%
Minimum \| Committed Loan Repurchase Facility \| 5/24/2020
Assets Sold under Agreements to Repurchase [Line Items]
Interest rate		4.25%
Minimum \| Committed Loan Repurchase Facility \| 5/24/2019
Assets Sold under Agreements to Repurchase [Line Items]
Interest rate			4.68%
Minimum \| Committed Loan Repurchase Facility \| 4/10/2020
Assets Sold under Agreements to Repurchase [Line Items]
Interest rate		4.00%
Minimum \| Committed Loan Repurchase Facility \| 4/7/2019
Assets Sold under Agreements to Repurchase [Line Items]
Interest rate			4.46%
Minimum \| Committed Loan Repurchase Facility \| 5/6/2021
Assets Sold under Agreements to Repurchase [Line Items]
Interest rate		3.81%	4.40%
Minimum \| Committed Loan Repurchase Facility \| 7/20/2021
Assets Sold under Agreements to Repurchase [Line Items]
Interest rate		4.02%	4.58%
Minimum \| Committed Loan Repurchase Facility \| 3/4/2021
Assets Sold under Agreements to Repurchase [Line Items]
Interest rate		2.38%
Minimum \| Uncommitted Securities Repurchase Facility \| Various Date
Assets Sold under Agreements to Repurchase [Line Items]
Interest rate		2.45%	2.99%
Minimum \| Mortgage Loan Financing \| Various Date
Assets Sold under Agreements to Repurchase [Line Items]
Interest rate		4.25%	4.25%
Minimum \| CLO Debt \| Various Date
Assets Sold under Agreements to Repurchase [Line Items]
Interest rate		3.40%	3.34%
Minimum \| Borrowings from the FHLB \| Various Date
Assets Sold under Agreements to Repurchase [Line Items]
Interest rate		1.47%	1.18%
Minimum \| Senior Unsecured Notes \| Various Date
Assets Sold under Agreements to Repurchase [Line Items]
Interest rate		5.25%	5.25%
Maximum \| Committed Loan Repurchase Facility \| 10/1/2020
Assets Sold under Agreements to Repurchase [Line Items]
Interest rate			4.96%
Maximum \| Committed Loan Repurchase Facility \| 2/24/2022
Assets Sold under Agreements to Repurchase [Line Items]
Interest rate		4.28%
Maximum \| Committed Loan Repurchase Facility \| 5/24/2020
Assets Sold under Agreements to Repurchase [Line Items]
Interest rate		4.60%
Maximum \| Committed Loan Repurchase Facility \| 5/24/2019
Assets Sold under Agreements to Repurchase [Line Items]
Interest rate			4.98%
Maximum \| Committed Loan Repurchase Facility \| 4/10/2020
Assets Sold under Agreements to Repurchase [Line Items]
Interest rate		4.53%
Maximum \| Committed Loan Repurchase Facility \| 4/7/2019
Assets Sold under Agreements to Repurchase [Line Items]
Interest rate			4.96%
Maximum \| Committed Loan Repurchase Facility \| 5/6/2021
Assets Sold under Agreements to Repurchase [Line Items]
Interest rate		4.06%	4.94%
Maximum \| Committed Loan Repurchase Facility \| 7/20/2021
Assets Sold under Agreements to Repurchase [Line Items]
Interest rate		4.28%	4.96%
Maximum \| Committed Loan Repurchase Facility \| 3/4/2021
Assets Sold under Agreements to Repurchase [Line Items]
Interest rate		2.87%
Maximum \| Uncommitted Securities Repurchase Facility \| Various Date
Assets Sold under Agreements to Repurchase [Line Items]
Interest rate		3.78%	4.55%
Maximum \| Mortgage Loan Financing \| Various Date
Assets Sold under Agreements to Repurchase [Line Items]
Interest rate		6.75%	7.00%
Maximum \| CLO Debt \| Various Date
Assets Sold under Agreements to Repurchase [Line Items]
Interest rate		5.62%	6.06%
Maximum \| Borrowings from the FHLB \| Various Date
Assets Sold under Agreements to Repurchase [Line Items]
Interest rate		2.95%	3.01%
Maximum \| Senior Unsecured Notes \| Various Date
Assets Sold under Agreements to Repurchase [Line Items]
Interest rate		5.875%	5.875%

DEBT OBLIGATIONS, NET - Additional Information (Details) $ in Thousands										3 Months Ended			9 Months Ended		12 Months Ended
	May 24, 2019	Feb. 26, 2019 Extension	Feb. 06, 2019 USD ($)	Jul. 20, 2018	Apr. 03, 2018 USD ($)	Dec. 06, 2017 USD ($)	Sep. 25, 2017 USD ($)	Mar. 16, 2017 USD ($)	Aug. 01, 2014 USD ($)	Sep. 30, 2019 USD ($) counterparty	Sep. 30, 2018 USD ($)	Mar. 31, 2017 USD ($)	Sep. 30, 2019 USD ($) counterparty agreement	Sep. 30, 2018 USD ($) agreement	Dec. 31, 2018 USD ($)	Dec. 31, 2016 USD ($)	Jan. 01, 2021 USD ($)	Apr. 01, 2020 USD ($)	Dec. 27, 2018 USD ($)	May 07, 2018 USD ($)	Dec. 21, 2017 USD ($)	Oct. 17, 2017 USD ($)	Feb. 24, 2016 USD ($)	Feb. 19, 2016
Committed Loan and Securities Repurchase Facilities
Gross amounts of recognized liabilities										$ 1,786,048			$ 1,786,048		$ 663,685
Mortgage loan receivables held for investment, net, at amortized cost:
Amortization of premiums													1,300	$ 762
Mortgage loan and financing related to property sales			$ 6,600
Gain (loss) on extinguishment/defeasance of debt			$ (1,100)							0	$ (4,323)		(1,070)	(4,392)
Collateralized Debt Obligations [Abstract]
Gross amounts offset in the balance sheet										$ 0			0		0
Proceeds from borrowings under debt obligations													$ 10,186,669	$ 4,401,648
Borrowings from Federal Home Loan Bank (FHLB) [Abstract]
Percent of FHLB advances to total debt obligations outstanding										22.10%			22.10%
Retained earnings, appropriated										$ 829,300			$ 829,300
Tuebor
Borrowings from Federal Home Loan Bank (FHLB) [Abstract]
Amount restricted from transfer										1,900,000			1,900,000
Credit Agreement and Revolving Credit Facility
Borrowing Under Credit Facilties and Debt Issuance Costs [Abstract]
Unamortized debt issuance costs										$ 6,800			$ 6,800		6,300
LCFH
Borrowings from Federal Home Loan Bank (FHLB) [Abstract]
Ownership interest in LCFH										89.80%			89.80%
LCFC \| LCFH
Borrowings from Federal Home Loan Bank (FHLB) [Abstract]
Ownership interest in LCFH										100.00%			100.00%
Mortgage loan financing
Committed Loan and Securities Repurchase Facilities
Number of agreements \| agreement													9	11
Mortgage loan receivables held for investment, net, at amortized cost:
Mortgage loan financing										$ 723,300			$ 723,300		743,900
Net unamortized premiums										5,300			5,300		5,800
Amortization of premiums										500	300		1,300	$ 800
Pledged assets, real estate and lease intangibles, net										902,700			$ 902,700		$ 939,400
Borrowings from the Federal Home Loan Bank \| Tuebor
Committed Loan and Securities Repurchase Facilities
Debt borrowings term													5 years		5 years 9 months
Borrowings from Federal Home Loan Bank (FHLB) [Abstract]
Maximum advance limit						$ 2,000,000
Advance rates of total assets						40.00%
Advance rates of total equity						150.00%
FHLB borrowings outstanding										1,100,000			$ 1,100,000		$ 1,300,000
Additional committed term financing available from FHLB										$ 869,300			$ 869,300		$ 647,500
Weighted average term													2 years 3 months 18 days		2 years 6 months
Weighted average interest rate										2.50%			2.50%		2.55%
Maximum percent of FHLB advances to total assets																								40.00%
Borrowings from the Federal Home Loan Bank \| Tuebor \| CMBS and U.S. Agency Securities
Borrowings from Federal Home Loan Bank (FHLB) [Abstract]
Collateral for debt instrument										$ 721,500			$ 721,500		$ 1,000,000
Borrowings from the Federal Home Loan Bank \| Tuebor \| First mortgage commercial real estate loans
Borrowings from Federal Home Loan Bank (FHLB) [Abstract]
Collateral for debt instrument										689,500			689,500		$ 637,200
Borrowings from the Federal Home Loan Bank \| Scenario, Forecast \| Tuebor
Borrowings from Federal Home Loan Bank (FHLB) [Abstract]
Maximum advance limit																	$ 750,000	$ 1,500,000
Senior Unsecured Notes \| Senior Notes Due 2021
Borrowing Under Credit Facilties and Debt Issuance Costs [Abstract]
Unamortized debt issuance costs																$ 400
Mortgage loan receivables held for investment, net, at amortized cost:
Stated interest rate on debt instrument									5.875%
Gain (loss) on extinguishment/defeasance of debt																5,100
Borrowings from Federal Home Loan Bank (FHLB) [Abstract]
Loan refinance									$ 300,000	$ 266,200			$ 266,200
Debt instrument, minimum number of days to give notice for redemption without penalty									30 days
Debt instrument, maximum number of days to give notice for redemption without penalty									60 days
Debt instrument, authorized repurchase amount																							$ 100,000
Debt instrument, repurchase price amount																28,200
Debt instrument, repurchased face amount																$ 33,800
Senior Unsecured Notes \| Senior Notes Due 2022
Mortgage loan receivables held for investment, net, at amortized cost:
Stated interest rate on debt instrument								5.25%
Borrowings from Federal Home Loan Bank (FHLB) [Abstract]
Loan refinance								$ 500,000
Debt instrument, minimum number of days to give notice for redemption without penalty								15 days
Debt instrument, maximum number of days to give notice for redemption without penalty								60 days
Senior Unsecured Notes \| Senior Notes Due 2025
Mortgage loan receivables held for investment, net, at amortized cost:
Stated interest rate on debt instrument							5.25%
Borrowings from Federal Home Loan Bank (FHLB) [Abstract]
Loan refinance							$ 400,000
Debt instrument, minimum number of days to give notice for redemption without penalty							15 days
Debt instrument, maximum number of days to give notice for redemption without penalty							60 days
Maximum \| Mortgage loan financing
Mortgage loan receivables held for investment, net, at amortized cost:
Stated interest rate on debt instrument										6.75%			6.75%
Maximum \| Borrowings from the Federal Home Loan Bank \| Tuebor
Borrowing Under Credit Facilties and Debt Issuance Costs [Abstract]
Advance rates													95.70%		95.20%
Mortgage loan receivables held for investment, net, at amortized cost:
Stated interest rate on debt instrument										2.95%			2.95%		3.01%
Minimum \| Mortgage loan financing
Mortgage loan receivables held for investment, net, at amortized cost:
Stated interest rate on debt instrument										4.25%			4.25%
Minimum \| Borrowings from the Federal Home Loan Bank \| Tuebor
Borrowing Under Credit Facilties and Debt Issuance Costs [Abstract]
Advance rates													61.00%		56.40%
Mortgage loan receivables held for investment, net, at amortized cost:
Stated interest rate on debt instrument										1.47%			1.47%		1.18%
Revolving credit facility
Committed Loan and Securities Repurchase Facilities
Committed amount on credit agreement																				$ 300,000
Debt borrowings term					1 year
Revolving credit facility \| One-Month LIBOR
Committed Loan and Securities Repurchase Facilities
Committed amount on credit agreement										$ 266,400			$ 266,400
Basis spread on variable rate				25.00%
Number of extension maturity periods \| Extension		2
Length of extension options		12 months
Mortgage loan receivables held for investment, net, at amortized cost:
Stated interest rate on debt instrument										3.25%			3.25%
Revolving credit facility \| Maximum
Committed Loan and Securities Repurchase Facilities
Committed amount on credit agreement					$ 450,000
Revolving credit facility \| Minimum
Committed Loan and Securities Repurchase Facilities
Committed amount on credit agreement					$ 350,000
Letters of credit
Committed Loan and Securities Repurchase Facilities
Committed amount on credit agreement										$ 25,000			$ 25,000
Committed Loan Repurchase Facility
Committed Loan and Securities Repurchase Facilities
Number of agreements \| agreement													6
Committed amount on credit agreement										1,800,000			$ 1,800,000
Committed financing										1,750,000			1,750,000		$ 1,750,000				$ 100,000
Length of additional extension maturity periods	1 year
Gross amounts of recognized liabilities										760,521			760,521		497,531
Collateralized Debt Obligations [Abstract]
Gross amounts offset in the balance sheet										1,158,592			1,158,592		744,310
Term master repurchase agreement
Committed Loan and Securities Repurchase Facilities
Committed financing										400,000			400,000
Total Repurchase Facilities
Committed Loan and Securities Repurchase Facilities
Committed financing										$ 2,150,000			$ 2,150,000		2,150,000
Repurchase agreements, number of counterparties \| counterparty										10			10
Gross amounts of recognized liabilities										$ 1,786,048			$ 1,786,048		663,685
Collateralized Debt Obligations [Abstract]
Gross amounts offset in the balance sheet										$ 2,309,802			$ 2,309,802		932,113
Total Repurchase Facilities \| Deutshe Bank, J.P. Morgan and Wells Fargo
Committed Loan and Securities Repurchase Facilities
Repurchase agreements, number of counterparties \| counterparty										2			2
Excess collateral over amounts borrowed under repurchase agreements										$ 82,000			$ 82,000
Ratio indebtedness over total equity													5.00%
Haircut on repurchase agreements										22.80%			22.80%
Uncommitted securities Repurchase Facilities \| Various Date
Committed Loan and Securities Repurchase Facilities
Gross amounts of recognized liabilities										$ 940,070			$ 940,070		166,154
Collateralized Debt Obligations [Abstract]
Gross amounts offset in the balance sheet										$ 1,047,663			$ 1,047,663		$ 187,803
Uncommitted securities Repurchase Facilities \| Maximum
Borrowing Under Credit Facilties and Debt Issuance Costs [Abstract]
Advance rates													95.00%
Uncommitted securities Repurchase Facilities \| Maximum \| Various Date
Collateralized Debt Obligations [Abstract]
Interest rate										3.78%			3.78%		4.55%
Uncommitted securities Repurchase Facilities \| Minimum
Borrowing Under Credit Facilties and Debt Issuance Costs [Abstract]
Advance rates													75.00%
Uncommitted securities Repurchase Facilities \| Minimum \| Various Date
Collateralized Debt Obligations [Abstract]
Interest rate										2.45%			2.45%		2.99%
Mortgage loan financing \| Various Date
Committed Loan and Securities Repurchase Facilities
Committed financing										$ 723,313			$ 723,313		$ 743,902
Gross amounts of recognized liabilities										723,313			723,313		743,902
Collateralized Debt Obligations [Abstract]
Gross amounts offset in the balance sheet										$ 902,656			$ 902,656		$ 939,362
Mortgage loan financing \| Maximum \| Various Date
Collateralized Debt Obligations [Abstract]
Interest rate										6.75%			6.75%		7.00%
Mortgage loan financing \| Minimum \| Various Date
Collateralized Debt Obligations [Abstract]
Interest rate										4.25%			4.25%		4.25%
CLO Debt \| Various Date
Committed Loan and Securities Repurchase Facilities
Committed financing										$ 117,760			$ 117,760		$ 601,543
Gross amounts of recognized liabilities										117,760			117,760		601,543
Collateralized Debt Obligations [Abstract]
Unamortized debt issuance costs										400			400		2,600
Gross amounts offset in the balance sheet										$ 274,149			$ 274,149		$ 710,502						$ 431,500	$ 456,900
CLO Debt \| Affiliated Entity \| Various Date
Collateralized Debt Obligations [Abstract]
Ownership percentage																					25.00%	18.50%
CLO Debt \| Maximum \| Various Date
Collateralized Debt Obligations [Abstract]
Interest rate										5.62%			5.62%		6.06%
CLO Debt \| Minimum \| Various Date
Collateralized Debt Obligations [Abstract]
Interest rate										3.40%			3.40%		3.34%
CLO Debt \| Weighted Average \| Various Date
Collateralized Debt Obligations [Abstract]
Interest rate										4.97%			4.97%
Participation Financing - Mortgage Loan Receivable
Committed Loan and Securities Repurchase Facilities
Gross amounts of recognized liabilities										$ 0			$ 0		$ 2,500
Collateralized Debt Obligations [Abstract]
Proceeds from borrowings under debt obligations												$ 4,000
Participation Financing - Mortgage Loan Receivable \| Related Reserve IV LLC \| Affiliated Entity \| B Participation Interest
Collateralized Debt Obligations [Abstract]
Interest expense, debt											$ 100		200	$ 400
Senior Unsecured Notes
Collateralized Debt Obligations [Abstract]
Unamortized debt issuance costs										9,084			9,084
Senior Unsecured Notes \| Various Date
Collateralized Debt Obligations [Abstract]
Unamortized debt issuance costs										9,100			9,100		11,200
Borrowings from Federal Home Loan Bank (FHLB) [Abstract]
Loan refinance										$ 1,166,201			$ 1,166,201		$ 1,166,201
Senior Unsecured Notes \| Maximum \| Various Date
Collateralized Debt Obligations [Abstract]
Interest rate										5.875%			5.875%		5.875%
Senior Unsecured Notes \| Minimum \| Various Date
Collateralized Debt Obligations [Abstract]
Interest rate										5.25%			5.25%		5.25%

DEBT OBLIGATIONS, NET - Schedule of Maturities (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019 USD ($)
Long-term Debt, Fiscal Year Maturity [Abstract]
2019 (last 3 months)	$ 1,039,597
2020	1,052,894
2021	876,649
2022	655,706
2023	559,422
Thereafter	680,935
Subtotal	4,865,203
Premiums included in mortgage loan financing	5,342
Debt obligations	4,860,687
Senior Unsecured Notes
Long-term Debt, Fiscal Year Maturity [Abstract]
Unamortized debt issuance costs	(9,084)
CLO debt
Long-term Debt, Fiscal Year Maturity [Abstract]
Unamortized debt issuance costs	(394)
Mortgage Loan Financing
Long-term Debt, Fiscal Year Maturity [Abstract]
Unamortized debt issuance costs	$ (380)
Length of extension options	1 year

DERIVATIVE INSTRUMENTS - Schedule of Derivatives Outstanding (Details) - USD ($)
$ in Thousands

9 Months Ended

12 Months Ended

Sep. 30, 2019

Dec. 31, 2018

$ 276,471

$ 578,971

^[1]

22

0

^[1]

82

975

1 Month LIBOR

69,571

0

$ 0

7 months 9 days

1 year 4 months 6 days

5-year Swap

$ 49,200

$ 274,900

0

$ 20

$ 526

3 months

10-year Swap

$ 149,500

$ 227,700

0

$ 61

$ 436

5-year U.S. Treasury Note

3 months

$ 2,200

$ 6,800

0

$ 1

$ 13

3 months

Futures

$ 200,900

$ 509,400

0

82

$ 975

S&P 500 Put Options

6,000

22

$ 0

3 months 18 days

Credit Derivatives

$ 6,000

22

Gross amounts of recognized assets

$ 0

[1]	Includes amounts relating to consolidated variable interest entities. See Note 10.

DERIVATIVE INSTRUMENTS - Schedule of Realized Gains (Losses) on Derivatives (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Derivative [Line Items]
Unrealized Gain/(Loss)	$ (621)	$ (984)	$ 889	$ 1,356
Realized Gain/(Loss)	(8,844)	8,099	(36,845)	27,800
Net Result from Derivative Transactions	(9,465)	7,115	(35,956)	29,156
Futures
Derivative [Line Items]
Unrealized Gain/(Loss)	(618)	(940)	892	(52)
Realized Gain/(Loss)	(8,868)	8,099	(36,761)	28,985
Net Result from Derivative Transactions	(9,486)	7,159	(35,869)	28,933
Swaps
Derivative [Line Items]
Unrealized Gain/(Loss)		0		1,403
Realized Gain/(Loss)		0		(848)
Net Result from Derivative Transactions		0		555
Credit Derivatives
Derivative [Line Items]
Unrealized Gain/(Loss)	(3)	(44)	(3)	5
Realized Gain/(Loss)	24	0	(84)	(337)
Net Result from Derivative Transactions	$ 21	$ (44)	$ (87)	$ (332)

DERIVATIVE INSTRUMENTS - Additional Information (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Cash margins held as collateral for derivatives by counterparties	$ 4,200,000	$ 5,000,000.0
Cash collateral held by counterparty	$ 0	$ 0

OFFSETTING ASSETS AND LIABILITIES - Offsetting Assets (Details) - USD ($)
$ in Thousands

Sep. 30, 2019

Dec. 31, 2018

Offsetting of derivative assets

$ 22

Net amounts of assets presented in the balance sheet

0

^[1]

22

$ 0

Cash collateral received/(posted)

Financial instruments

0

0

Gross amounts of recognized liabilities

$ 22

[1]	Includes amounts relating to consolidated variable interest entities. See Note 10.

OFFSETTING ASSETS AND LIABILITIES - Offsetting Liabilities (Details) - USD ($)
$ in Thousands

Sep. 30, 2019

Dec. 31, 2018

Derivatives

$ 82

$ 975

Net amounts of liabilities presented in the balance sheet

0

^[1]

82

975

Financial instruments collateral

0

Cash collateral posted/(received)

82

975

Gross amounts of recognized liabilities

0

Repurchase agreements

1,786,048

663,685

Net amounts of liabilities presented in the balance sheet

0

1,786,048

663,685

Financial instruments collateral

1,786,048

663,685

Cash collateral posted/(received)

0

Gross amounts of recognized liabilities

0

Total

1,786,130

664,660

Net amounts of liabilities presented in the balance sheet

0

1,786,130

664,660

Financial instruments collateral

1,786,048

663,685

Cash collateral posted/(received)

82

975

$ 0

[1]	Includes amounts relating to consolidated variable interest entities. See Note 10.

CONSOLIDATED VARIABLE INTEREST ENTITIES (Details) - CLO - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Variable Interest Entity [Line Items]
Total assets	$ 275,512	$ 795,813
Total liabilities	118,068	608,913
Net equity in VIEs (eliminated in consolidation)	157,444	186,900
Total equity	157,444	186,900
Total liabilities and equity	275,512	795,813
Total mortgage loan receivables held for investment, net, at amortized cost
Variable Interest Entity [Line Items]
Total assets	274,149	710,502
Accrued interest receivable
Variable Interest Entity [Line Items]
Total assets	1,363	3,921
Other assets
Variable Interest Entity [Line Items]
Total assets	0	81,390
Senior and unsecured debt obligations
Variable Interest Entity [Line Items]
Total liabilities	117,760	607,440
Accrued expenses
Variable Interest Entity [Line Items]
Total liabilities	306	1,471
Other liabilities
Variable Interest Entity [Line Items]
Total liabilities	$ 2	$ 2

EQUITY STRUCTURE AND ACCOUNTS - Additional Information (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2019 USD ($) Vote Class_of_Stock $ / shares shares	Sep. 30, 2018 USD ($) shares	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Oct. 30, 2014 USD ($)
Class of Stock [Line Items]
Number of classes of common stock \| Class_of_Stock	2
2014 Share Repurchase Authorization Program
Class of Stock [Line Items]
Remaining amount available for repurchase \| $	$ 41,100
Percentage of aggregate common stock outstanding under Repurchase Program	2.20%
Closing price (in dollars per share) \| $ / shares	$ 17.27
Series REIT LP Units
Class of Stock [Line Items]
Exchange of noncontrolling interest for common stock, units exchanged (in shares)	1,140,000	4,549,832
Series TRS LP Units
Class of Stock [Line Items]
Exchange of noncontrolling interest for common stock, units exchanged (in shares)	1,140,000	4,549,832
Class A Common Stock
Class of Stock [Line Items]
Number of votes per share \| Vote	1
Exchange of noncontrolling interest for common stock, units exchanged (in shares)	1,140,000
Exchange of noncontrolling interest for common stock (in shares)		4,549,832
Class A Common Stock \| 2014 Share Repurchase Authorization Program
Class of Stock [Line Items]
Additional authorizations \| $		$ 0			$ 50,000
Purchase of treasury stock (in shares)	40,065	0
Remaining amount available for repurchase \| $	$ 41,132	$ 41,769	$ 41,769	$ 41,769
Class B Common Stock
Class of Stock [Line Items]
Number of votes per share \| Vote	1
Exchange of noncontrolling interest for common stock, units exchanged (in shares)	(1,140,000)
Exchange of noncontrolling interest for common stock (in shares)		(4,549,832)

EQUITY STRUCTURE AND ACCOUNTS - Schedule of repurchase of treasury stock activity (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Treasury Stock [Roll Forward]
Repurchases paid	$ (637)
2014 Share Repurchase Authorization Program
Treasury Stock [Roll Forward]
Remaining amount available for repurchase	$ 41,100
2014 Share Repurchase Authorization Program \| Class A Common Stock
Class of Stock [Line Items]
Purchase of treasury stock (in shares)	40,065	0
Treasury Stock [Roll Forward]
Remaining amount available for repurchase	$ 41,769	$ 41,769
Additional authorizations	0
Repurchases paid	(637)	0
Repurchases unsettled	0	0
Remaining amount available for repurchase	$ 41,132	$ 41,769

EQUITY STRUCTURE AND ACCOUNTS - Dividends Declared (Details) - $ / shares							3 Months Ended		9 Months Ended
	Aug. 22, 2019	May 30, 2019	Feb. 27, 2019	Sep. 05, 2018	May 30, 2018	Feb. 27, 2018	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Class A Common Stock
Class of Stock [Line Items]
Dividends per share of Class A common stock (in dollars per share)	$ 0.340	$ 0.340	$ 0.340	$ 0.325	$ 0.325	$ 0.315	$ 0.340	$ 0.325	$ 1.020	$ 0.965

EQUITY STRUCTURE AND ACCOUNTS - Changes in Accumulated Other Comprehensive Income (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2019

Sep. 30, 2018

$ 1,648,074

$ 1,512,462

$ 1,643,635

^[1]

$ 1,488,146

Exchange of noncontrolling interest for common stock

(2,009)

1,445

16,775

(9,658)

0

Rebalancing of ownership percentage between Company and Operating Partnership

0

Accumulated Other Comprehensive Income (Loss)

1,639,250

^[1]

1,553,643

1,639,250

^[1]

1,553,643

12,171

(9,855)

(4,649)

(212)

Exchange of noncontrolling interest for common stock

(1,804)

1,276

14,935

(8,230)

64

(167)

Rebalancing of ownership percentage between Company and Operating Partnership

17

27

Accumulated Other Comprehensive Income (Loss) of Noncontrolling Interests

10,367

(8,582)

10,367

(8,582)

(588)

116

Exchange of noncontrolling interest for common stock

1,840

(1,428)

(64)

167

Rebalancing of ownership percentage between Company and Operating Partnership

(17)

(27)

Total Accumulated Other Comprehensive Income (Loss)

1,171

(1,172)

1,171

(1,172)

(5,237)

(96)

$ 11,538

$ (9,754)

$ 11,538

$ (9,754)

[1]	Includes amounts relating to consolidated variable interest entities. See Note 10.

NONCONTROLLING INTERESTS (Details) $ in Millions	9 Months Ended
NONCONTROLLING INTERESTS (Details) $ in Millions	Sep. 30, 2019 USD ($) property Joint_Venture
Consolidated Joint Venture
Noncontrolling Interest [Line Items]
Number of consolidated joint ventures \| Joint_Venture	7
Number of real estate properties	40
Consolidated Joint Venture \| Diversified
Noncontrolling Interest [Line Items]
Number of real estate properties	20
Consolidated Joint Venture \| Industrial Properties
Noncontrolling Interest [Line Items]
Number of real estate properties	1
Consolidated Joint Venture \| Condominium
Noncontrolling Interest [Line Items]
Number of real estate properties	1
Consolidated Joint Venture \| Apartment Building
Noncontrolling Interest [Line Items]
Number of real estate properties	1
Consolidated Joint Venture \| Minimum
Noncontrolling Interest [Line Items]
Noncontrolling interest ownership	1.20%
Consolidated Joint Venture \| Maximum
Noncontrolling Interest [Line Items]
Noncontrolling interest ownership	29.40%
Operating Partnership
Noncontrolling Interest [Line Items]
Decrease in noncontrolling interest in Operating Partnership \| $	$ (0.1)

EARNINGS PER SHARE - Net Income and Weighted Average Shares Outstanding (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Weighted average shares outstanding:
Basic (in shares)	106,004,152	96,935,986	105,264,752	96,317,513
Diluted (in shares)	106,603,713	110,650,253	106,232,581	110,482,991
Class A Common Stock
Earnings Per Share
Basic Net income (loss) available for Class A common shareholders	$ 27,576	$ 66,630	$ 81,996	$ 155,911
Diluted Net income (loss) available for Class A common shareholders	$ 27,576	$ 74,038	$ 81,996	$ 177,875
Weighted average shares outstanding:
Basic (in shares)	106,004,152	96,935,986	105,264,752	96,317,513
Diluted (in shares)	106,603,713	110,650,253	106,232,581	110,482,991

EARNINGS PER SHARE - Schedule of Calculation of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Denominator:
Weighted average number of shares of Class A common stock outstanding (in shares)	106,004,152	96,935,986	105,264,752	96,317,513
Basic net income (loss) per share of Class A common stock (in dollars per share)	$ 0.26	$ 0.69	$ 0.78	$ 1.62
Denominator:
Weighted average number of shares of Class A common stock outstanding (in shares)	106,004,152	96,935,986	105,264,752	96,317,513
Diluted weighted average number of shares of Class A common stock outstanding (in shares)	106,603,713	110,650,253	106,232,581	110,482,991
Diluted net income (loss) per share of Class A common stock (in dollars per share)	$ 0.26	$ 0.67	$ 0.77	$ 1.61
Class A Common Stock
Numerator:
Net income (loss) attributable to Class A common shareholders	$ 27,576	$ 66,630	$ 81,996	$ 155,911
Denominator:
Weighted average number of shares of Class A common stock outstanding (in shares)	106,004,152	96,935,986	105,264,752	96,317,513
Basic net income (loss) per share of Class A common stock (in dollars per share)	$ 0.26	$ 0.69	$ 0.78	$ 1.62
Numerator:
Net income (loss) attributable to Class A common shareholders	$ 27,576	$ 66,630	$ 81,996	$ 155,911
Amounts attributable to operating partnership’s share of Ladder Capital Corp net income (loss)	0	8,991	0	22,786
Additional corporate tax (expense) benefit	0	(1,583)	0	(822)
Diluted net income (loss) attributable to Class A common shareholders	$ 27,576	$ 74,038	$ 81,996	$ 177,875
Denominator:
Weighted average number of shares of Class A common stock outstanding (in shares)	106,004,152	96,935,986	105,264,752	96,317,513
Shares issuable relating to converted Class B common shareholders (in shares)	0	13,202,202	0	13,800,597
Incremental shares of unvested Class A restricted stock (in shares)	599,561	512,065	967,829	364,881
Diluted weighted average number of shares of Class A common stock outstanding (in shares)	106,603,713	110,650,253	106,232,581	110,482,991
Diluted net income (loss) per share of Class A common stock (in dollars per share)	$ 0.26	$ 0.67	$ 0.77	$ 1.61

STOCK BASED AND OTHER COMPENSATION PLANS - Stock Based Compensation Plans Summary (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognized equity based compensation expense	$ 3,575	$ 2,162	$ 18,336	$ 6,667
Ladder Capital Corp Deferred Compensation Plan	0	601	0	1,519
Bonus Expense	6,533	9,210	21,035	26,772
Other Employee/Director Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognized equity based compensation expense	6	13	23	45
Phantom Equity Investment Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognized equity based compensation expense	343	0	1,047	0
Annual Incentive Awards Granted in 2015 with Respect to 2014 Performance \| 2014 Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognized equity based compensation expense	0	0	0	172
Annual Incentive Awards Granted in 2016 with Respect to 2015 Performance \| 2014 Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognized equity based compensation expense	0	323	131	971
Annual Incentive Awards Granted in 2017 With Respect to 2016 Performance \| 2014 Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognized equity based compensation expense	280	524	955	1,655
Other 2017 Restricted Stock Awards \| 2014 Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognized equity based compensation expense	25	76	102	257
Annual Incentive Awards Granted in 2017 With Respect to 2017 Performance \| 2014 Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognized equity based compensation expense	596	1,122	1,961	3,325
2018 Restricted Stock Awards \| 2014 Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognized equity based compensation expense	0	95	32	230
Other 2018 Restricted Stock Awards \| 2014 Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognized equity based compensation expense	11	9	31	12
Annual Incentive Awards Granted in 2019 with Respect to 2018 Performance \| 2014 Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognized equity based compensation expense	2,509	0	14,804	0
Other 2019 Restricted Stock Awards \| 2014 Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognized equity based compensation expense	$ 148	$ 0	$ 297	$ 0

STOCK BASED AND OTHER COMPENSATION PLANS - Summary of Grants (Details) - $ / shares				3 Months Ended		9 Months Ended
	Jul. 19, 2018	Apr. 23, 2018	Feb. 18, 2018	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares/Options (in shares)						1,580,807	33,656
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Options (in shares)				0	0	12,073	0
Class A Common Stock \| Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares/Options (in shares)	4,720	3,566	25,370	23,443	4,720	1,569,694	33,656
Weighted Average Fair Value Per Share (in dollars per share)				$ 16.58	$ 15.89	$ 17.54	$ 14.86
Class A Common Stock \| Dividend Declared
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares/Options (in shares)				0	0	11,113	0
Weighted Average Fair Value Per Share (in dollars per share)				$ 0	$ 0	$ 16.61	$ 0

STOCK BASED AND OTHER COMPENSATION PLANS - Nonvested Shares Outstanding (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Restricted Stock
Number of Shares Nonvested Other than Options [Roll Forward]
Nonvested/Outstanding (in shares)			1,118,194	1,252,365
Granted (in shares)			1,580,807	33,656
Vested (in shares)			(1,122,107)	(138,216)
Forfeited (in shares)			(8,702)	(26,061)
Nonvested/Outstanding (in shares)	1,568,192	1,121,744	1,568,192	1,121,744
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward]
Nonvested/Outstanding (in shares)			982,135	982,135
Granted (in shares)	0	0	12,073	0
Exercised (in shares)			0	0
Forfeited (in shares)			0	0
Expired (in shares)			0	0
Nonvested/Outstanding (in shares)	994,208	982,135	994,208	982,135
Exercisable (in shares)	994,208	929,701	994,208	929,701

STOCK BASED AND OTHER COMPENSATION PLANS - Additional Information (Details) $ / shares in Millions																				3 Months Ended		9 Months Ended		12 Months Ended
	Jul. 01, 2019 USD ($) shares	Jun. 04, 2019 USD ($) installment shares	Feb. 18, 2019	Feb. 18, 2019	Feb. 18, 2019 $ / shares	Feb. 18, 2019 USD ($)	Feb. 18, 2019 shares	Feb. 18, 2019 installment	Jan. 24, 2019 USD ($) shares	Jul. 19, 2018 USD ($) installment shares	Apr. 23, 2018 USD ($) installment anniversary shares	Feb. 18, 2018 USD ($) shares	Dec. 21, 2017 USD ($) installment shares	Jun. 22, 2017 USD ($) installment anniversary shares	Jun. 19, 2017 USD ($) shares	Mar. 03, 2017 USD ($) installment anniversary shares	Feb. 18, 2017 USD ($) installment anniversary shares	Jan. 24, 2017 USD ($) shares	Mar. 17, 2015	Sep. 30, 2019 USD ($) shares	Sep. 30, 2018 USD ($) shares	Sep. 30, 2019 USD ($) shares	Sep. 30, 2018 USD ($) shares	Dec. 31, 2018 USD ($) shares	Jan. 05, 2018 USD ($)	Dec. 29, 2017 USD ($)	Dec. 19, 2017 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost \| $																				$ 14,800,000	$ 8,000,000.0	$ 14,800,000	$ 8,000,000.0
Period of recognition for unrecognized compensation costs																						34 months	34 months
Remaining vesting period																						25 months 24 days	21 months 6 days
Aggregate value of awards granted \| $						$ 11,700,000
Accrued bonuses \| $																								$ 61,400,000			$ 49,300,000
Equity based compensation \| $													$ 15,500,000											$ 26,600,000
Bonuses paid \| $																									$ 16,800,000	$ 17,100,000
Bonus expense \| $																				$ 3,575,000	2,162,000	$ 18,336,000	$ 6,667,000
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted shares granted (in shares)																						1,580,807	33,656
2014 Omnibus Incentive Plan \| Management Grantees \| Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period of recognition for unrecognized compensation costs			3 years										3 years				3 years
2014 Omnibus Incentive Plan \| Management Grantees \| Restricted Stock \| Performance-based vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Minimum performance target percentage																	8.00%
Performance period																	3 years
2014 Omnibus Incentive Plan \| Management Grantees \| Restricted Stock \| Time Based Vesting on Three Year Anniversary
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of installments in which awards are vested				3				3					3				3
Number of anniversaries in which awards are vested \| anniversary																	3
2014 Omnibus Incentive Plan \| Non-Management Grantee \| Restricted Stock \| Time Based Vesting on Three Year Anniversary
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of installments in which awards are vested \| installment													3
2014 Omnibus Incentive Plan \| Michael Mazzei \| Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period of recognition for unrecognized compensation costs														3 years
2014 Omnibus Incentive Plan \| Harris \| Restricted Stock \| Time-based vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period													3 years
2014 Deferred Compensation Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Days following the end of the participant’s employment																			60 days
Units outstanding (in shares)																				260,200		260,200		380,662
Units unvested (in shares)																				138,583		138,583		130,389
Total employee's contribution, net of forfeitures and payouts related to terminations \| $																				$ 4,600,000		$ 4,600,000
Phantom Units 2
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total employee's contribution, net of forfeitures and payouts related to terminations \| $																								$ 5,900,000
Bonus Payments
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Bonus expense \| $																				$ 6,500,000	$ 9,200,000	$ 21,000,000.0	$ 26,800,000
Class A Common Stock \| Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period of recognition for unrecognized compensation costs										3 years
Number of restricted shares granted (in shares)										4,720	3,566	25,370								23,443	4,720	1,569,694	33,656
Number of installments in which awards are vested \| installment								3		3	3
Number of anniversaries in which awards are vested		3								3	3
Grant date fair value \| $										$ 100,000	$ 100,000	$ 400,000
Class A Common Stock \| Management Grantees \| Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted shares granted (in shares)		4,568							682
Grant date fair value \| $									$ 11,328
Class A Common Stock \| Board of Directors \| Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted shares granted (in shares)							25,626
Number of anniversaries in which awards are vested		3
Vesting period			1 year									1 year
Grant date fair value \| $		$ 100,000				$ 400,000
Class A Common Stock \| Non-Management Grantee \| Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted shares granted (in shares)	24,125						849,087
Vesting percentage	50.00%			50.00%
Number of installments in which awards are vested	3			3
Aggregate value of restricted stock awards (in dollars per share) \| $ / shares					$ 14.9
Grant date fair value \| $	$ 400,000
Class A Common Stock \| 2014 Omnibus Incentive Plan \| Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate value of awards granted \| $																$ 100,000
Number of restricted shares granted (in shares)																5,130
Number of installments in which awards are vested \| installment																3
Number of anniversaries in which awards are vested \| anniversary																3
Vesting period																3 years
Class A Common Stock \| 2014 Omnibus Incentive Plan \| Restricted Stock \| Period 2
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected to vest (in shares)															1,775
Class A Common Stock \| 2014 Omnibus Incentive Plan \| Restricted Stock \| Period 3
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected to vest (in shares)															1,775
Class A Common Stock \| 2014 Omnibus Incentive Plan \| Restricted Stock \| Period 4
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected to vest (in shares)															1,775
Class A Common Stock \| 2014 Omnibus Incentive Plan \| Restricted Stock \| Period 5
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected to vest (in shares)															1,775
Class A Common Stock \| 2014 Omnibus Incentive Plan \| Restricted Stock \| Period 6
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected to vest (in shares)															1,775
Class A Common Stock \| 2014 Omnibus Incentive Plan \| Restricted Stock \| Period 7
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected to vest (in shares)															1,775
Class A Common Stock \| 2014 Omnibus Incentive Plan \| Management Grantees \| Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate value of awards granted \| $													$ 10,500,000				$ 10,200,000	$ 30,455
Number of restricted shares granted (in shares)							666,288						768,205				736,461	2,191
Class A Common Stock \| 2014 Omnibus Incentive Plan \| Management Grantees \| Restricted Stock \| Time-based vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage													50.00%				50.00%
Class A Common Stock \| 2014 Omnibus Incentive Plan \| Management Grantees \| Restricted Stock \| Performance-based vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage				50.00%									50.00%				50.00%
Number of installments in which awards are vested \| installment													3				3
Number of anniversaries in which awards are vested \| anniversary																	3
Class A Common Stock \| 2014 Omnibus Incentive Plan \| Management Grantees \| Restricted Stock With Dividend Equivalent Rights
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate value of awards granted \| $																	$ 48,475
Number of restricted shares granted (in shares)																	3,500
Cash dividends received \| $																	$ 1,000,000.0
Class A Common Stock \| 2014 Omnibus Incentive Plan \| New Employee \| Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate value of awards granted \| $																	$ 400,000
Number of restricted shares granted (in shares)																	28,881
Number of installments in which awards are vested \| installment																	2
Number of anniversaries in which awards are vested \| installment																	2
Class A Common Stock \| 2014 Omnibus Incentive Plan \| Board of Directors \| Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate value of awards granted \| $																	$ 200,000
Number of restricted shares granted (in shares)																	16,245
Vesting period																	1 year
Class A Common Stock \| 2014 Omnibus Incentive Plan \| Non-Management Grantee \| Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate value of awards granted \| $													$ 5,000,000.0		$ 300,000		$ 600,000
Number of restricted shares granted (in shares)													369,328		21,307		40,000
Class A Common Stock \| 2014 Omnibus Incentive Plan \| Non-Management Grantee \| Restricted Stock \| Time-based vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage													50.00%
Class A Common Stock \| 2014 Omnibus Incentive Plan \| Non-Management Grantee \| Restricted Stock \| Performance-based vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage													50.00%
Number of installments in which awards are vested \| installment													3
Class A Common Stock \| 2014 Omnibus Incentive Plan \| Non-Management Grantee \| Restricted Stock \| Period 1
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected to vest (in shares)															1,775
Class A Common Stock \| 2014 Omnibus Incentive Plan \| Non-Management Grantee \| Restricted Stock \| Period 8
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected to vest (in shares)															1,780
Class A Common Stock \| 2014 Omnibus Incentive Plan \| Michael Mazzei \| Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate value of awards granted \| $														$ 100,000
Number of restricted shares granted (in shares)														5,346
Number of installments in which awards are vested \| installment														3
Number of anniversaries in which awards are vested \| anniversary														3
Class A Common Stock \| 2014 Deferred Compensation Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Mandatory contribution period																			3 years

FAIR VALUE OF FINANCIAL INSTRUMENTS - Estimated Fair Values of Financial Instruments (Details)
$ in Thousands

9 Months Ended

12 Months Ended

Sep. 30, 2019

USD ($)

Sep. 30, 2018

Dec. 31, 2018

USD ($)

Assets:

$ 3,487,684

$ 3,564,681

^[1]

(18,500)

(17,900)

Total mortgage loan receivables held for investment, net, at amortized cost

$ 4,939,146

$ 4,401,295

Period of short interest rate reset risk

30 days

CLO debt

Period of short interest rate reset risk

30 days

Recurring

Assets:

Recurring | CMBS | Internal Model Third Party Inputs Valuation Technique

$ 1,899,012

$ 1,397,918

Assets:

1,779,458

1,258,819

1,780,233

1,257,801

$ 1,788,712

$ 1,252,640

0.0314

Recurring | CMBS interest-only | Internal Model Third Party Inputs Valuation Technique

2 years 4 months 17 days

2 years 3 months 29 days

Assets:

$ 2,139,357

$ 2,373,936

39,961

55,534

$ 41,440

$ 55,691

0.0365

0.0280

Recurring | GNMA interest-only | Internal Model Third Party Inputs Valuation Technique

2 years 7 months 9 days

2 years 8 months 8 days

Assets:

$ 113,096

$ 135,932

2,202

2,862

$ 2,026

$ 2,648

0.0965

0.0630

Recurring | Agency securities | Internal Model Third Party Inputs Valuation Technique

2 years 8 months 23 days

4 years 1 month 9 days

Assets:

$ 641

$ 668

652

682

$ 654

$ 662

0.0174

0.0183

Recurring | GNMA permanent securities | Internal Model Third Party Inputs Valuation Technique

1 year 11 months 19 days

2 years 4 months 9 days

Assets:

$ 31,760

$ 32,633

31,984

32,889

$ 32,795

$ 33,064

0.0327

0.0376

Recurring | Corporate bonds | Internal Model Third Party Inputs Valuation Technique

4 years 6 months 18 days

5 years 10 days

Assets:

$ 32,088

$ 55,305

31,604

54,257

$ 32,372

$ 53,871

0.0481

0.0504

Recurring | Equity securities | Internal Model Third Party Inputs Valuation Technique

1 year 3 months 21 days

2 years 6 months 3 days

Assets:

$ 13,720

$ 13,154

Recurring | Total mortgage loan receivables held for investment, net, at amortized cost | Discounted Cash Flow

13,457

11,550

Assets:

3,249,711

3,340,381

3,231,443

3,318,390

$ 3,249,383

$ 3,324,588

0.0729

0.0784

Recurring | Provisions For Loan Losses

1 year 4 months 13 days

1 year 3 months 25 days

Assets:

Recurring | First mortgage loans | Internal Model Third Party Inputs Valuation Technique

$ (18,500)

$ (17,900)

Assets:

173,957

181,905

174,214

182,439

$ 182,716

$ 187,870

0.0459

0.0546

Recurring | FHLB stock | FHLB stock

9 years 8 months 4 days

9 years 9 months

Assets:

$ 61,619

$ 57,915

61,619

57,915

$ 61,619

$ 57,915

Recurring | Nonhedge derivatives | Counterparty Quotations Valuation Technique

0.0550

0.0450

Assets:

Nonhedge derivative assets

$ 6,000

$ 0

$ 22

$ 0

Recurring | Repurchase agreements - short-term | Discounted Cash Flow

9 days

0 years

$ 1,486,049

$ 436,957

1,486,049

436,957

$ 1,486,049

$ 436,957

0.0265

0.0342

Recurring | Repurchase agreements - long-term | Discounted Cash Flow

5 days

2 months 23 days

$ 299,999

$ 226,728

299,999

226,728

$ 299,999

$ 226,728

0.0320

0.0347

Recurring | Mortgage loan financing | Discounted Cash Flow

1 year 3 months 10 days

1 year 8 months 23 days

$ 718,351

$ 738,825

723,313

743,902

$ 748,489

$ 735,662

0.0496

0.0509

Recurring | CLO debt | Discounted Cash Flow

1 year 6 months 3 days

2 years 7 months 9 days

$ 117,760

$ 601,543

117,760

601,543

$ 117,760

$ 601,543

0.0497

0.0441

Recurring | Participation Financing - Mortgage Loan Receivable | Discounted Cash Flow

5 years 10 months 28 days

9 years 4 months 24 days

$ 2,453

2,453

$ 2,453

0.1700

Recurring | Borrowings from the FHLB | Discounted Cash Flow

5 months 4 days

$ 1,076,449

$ 1,286,000

1,076,449

1,286,000

$ 1,084,876

$ 1,286,664

0.0250

0.0255

Recurring | Senior unsecured notes | Broker Quotations Pricing Services Valuation Technique

2 years 3 months 25 days

2 years 5 months 15 days

$ 1,166,201

1,157,117

1,154,991

$ 1,201,973

$ 1,111,288

0.0539

Recurring | Nonhedge derivatives | Counterparty Quotations Valuation Technique

3 years 6 months 10 days

4 years 3 months 10 days

Nonhedge derivative liabilities

$ 270,471

$ 578,971

$ 82

$ 975

3 months

[1]	Includes amounts relating to consolidated variable interest entities. See Note 10.

FAIR VALUE OF FINANCIAL INSTRUMENTS - Summary of Financial Assets and Liabilities (Details) - USD ($)
$ in Thousands

Sep. 30, 2019

Dec. 31, 2018

Assets:

$ 3,487,684

$ 3,564,681

^[1]

(18,500)

(17,900)

Repurchase agreements - short-term

4,939,146

4,401,295

1,486,049

436,957

Repurchase agreements - long-term

1,486,049

436,957

299,999

226,728

299,999

226,728

Mortgage loan financing

718,351

738,825

748,489

735,662

CLO debt

117,760

601,543

Participation Financing - Mortgage Loan Receivable

117,760

601,543

2,453

2,453

Borrowings from the FHLB

1,076,449

1,286,000

1,084,876

1,286,664

Senior unsecured notes

1,166,201

1,201,973

1,111,288

CMBS

Assets:

12,144

12,210

11,627

11,306

CMBS interest-only

Assets:

11,123

11,189

Total mortgage loan receivables held for investment, net, at amortized cost

839

902

Assets:

3,249,711

3,340,381

Mortgage loan receivables held for sale

3,249,383

3,324,588

Assets:

173,957

181,905

182,716

187,870

FHLB stock

Assets:

61,619

57,915

61,619

57,915

Level 1

Assets:

0

0

Level 1 | Repurchase agreements - short-term

0

Level 1 | Repurchase agreements - long-term

0

Level 1 | Mortgage loan financing

0

0

Level 1 | CLO debt

Level 1 | Participation Financing - Mortgage Loan Receivable

0

Level 1 | Borrowings from the FHLB

0

Level 1 | Senior unsecured notes

0

0

Level 1 | CMBS

Assets:

Level 1 | CMBS interest-only

0

Assets:

Level 1 | Total mortgage loan receivables held for investment, net, at amortized cost

0

Assets:

Level 1 | Mortgage loan receivables held for sale

0

Assets:

0

Assets:

0

Assets:

0

0

Level 2 | Repurchase agreements - short-term

0

Level 2 | Repurchase agreements - long-term

0

Level 2 | Mortgage loan financing

0

0

Level 2 | CLO debt

Level 2 | Participation Financing - Mortgage Loan Receivable

0

Level 2 | Borrowings from the FHLB

0

Level 2 | Senior unsecured notes

0

0

Level 2 | CMBS

Assets:

Level 2 | CMBS interest-only

0

Assets:

Level 2 | Total mortgage loan receivables held for investment, net, at amortized cost

0

Assets:

Level 2 | Mortgage loan receivables held for sale

0

Assets:

0

Assets:

0

Assets:

3,487,684

3,564,681

(18,500)

(17,900)

Level 3 | Repurchase agreements - short-term

4,939,146

4,401,295

Level 3 | Repurchase agreements - long-term

1,486,049

436,957

Level 3 | Mortgage loan financing

299,999

226,728

748,489

735,662

Level 3 | CLO debt

Level 3 | Participation Financing - Mortgage Loan Receivable

117,760

601,543

Level 3 | Borrowings from the FHLB

2,453

Level 3 | Senior unsecured notes

1,084,876

1,286,664

1,201,973

1,111,288

Level 3 | CMBS

Assets:

Level 3 | CMBS interest-only

11,627

11,306

Assets:

Level 3 | Total mortgage loan receivables held for investment, net, at amortized cost

839

902

Assets:

Level 3 | Mortgage loan receivables held for sale

3,249,383

3,324,588

Assets:

182,716

187,870

Level 3 | FHLB stock

Assets:

61,619

57,915

Recurring

Assets:

Recurring | Nonhedge derivatives

1,899,012

1,397,918

Assets:

82

Nonhedge derivative liabilities

270,471

605,871

975

Recurring | CMBS

Assets:

1,767,314

1,246,609

Recurring | CMBS interest-only

1,777,085

1,241,334

Assets:

2,128,234

2,362,747

Recurring | GNMA interest-only

40,601

54,789

Assets:

113,096

135,932

Recurring | Agency securities

2,026

2,648

Assets:

641

668

Recurring | GNMA permanent securities

654

662

Assets:

31,760

32,633

Recurring | Corporate bonds

32,795

33,064

Assets:

32,088

55,305

Recurring | Equity securities

32,372

53,871

Assets:

Recurring | Nonhedge derivatives

13,457

11,550

Assets:

Nonhedge derivative assets

22

6,000

Recurring | Level 1

Assets:

Recurring | Level 1 | Nonhedge derivatives

13,457

11,550

Assets:

0

Recurring | Level 1 | CMBS

0

Assets:

Recurring | Level 1 | CMBS interest-only

0

Assets:

Recurring | Level 1 | GNMA interest-only

0

Assets:

Recurring | Level 1 | Agency securities

0

Assets:

Recurring | Level 1 | GNMA permanent securities

0

Assets:

Recurring | Level 1 | Corporate bonds

0

Assets:

Recurring | Level 1 | Equity securities

0

Assets:

Recurring | Level 1 | Nonhedge derivatives

13,457

11,550

Assets:

0

Recurring | Level 2

Assets:

Recurring | Level 2 | Nonhedge derivatives

22

0

Recurring | Level 2 | CMBS

82

975

Assets:

Recurring | Level 2 | CMBS interest-only

0

Assets:

Recurring | Level 2 | GNMA interest-only

0

Assets:

Recurring | Level 2 | Agency securities

0

Assets:

Recurring | Level 2 | GNMA permanent securities

0

Assets:

Recurring | Level 2 | Corporate bonds

0

Assets:

Recurring | Level 2 | Nonhedge derivatives

0

Assets:

22

Recurring | Level 3

Assets:

Recurring | Level 3 | Nonhedge derivatives

1,885,533

1,386,368

Recurring | Level 3 | CMBS

0

Assets:

Recurring | Level 3 | CMBS interest-only

1,777,085

1,241,334

Assets:

Recurring | Level 3 | GNMA interest-only

40,601

54,789

Assets:

Recurring | Level 3 | Agency securities

2,026

2,648

Assets:

Recurring | Level 3 | GNMA permanent securities

654

662

Assets:

Recurring | Level 3 | Corporate bonds

32,795

33,064

Assets:

Recurring | Level 3 | Nonhedge derivatives

32,372

$ 53,871

Assets:

$ 0

[1]	Includes amounts relating to consolidated variable interest entities. See Note 10.

FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Changes in Level 3 (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 1,385,957	$ 1,106,517
Transfer from level 2	0	0
Purchases	1,193,671	303,007
Sales	(533,811)	(306,109)
Paydowns/maturities	(178,402)	(93,185)
Amortization of premium/discount	(9,333)	(17,842)
Unrealized gain/(loss)	16,813	(9,203)
Realized gain/(loss) on sale	10,639	(4,896)
Ending balance	$ 1,885,534	$ 978,289

FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Quantitative Information (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019 USD ($)	Dec. 31, 2018 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Carrying Value	$ 1,897,999	$ 1,398,576
CMBS
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Carrying Value	1,788,712	1,252,640
CMBS interest-only
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Carrying Value	41,440	55,691
GNMA interest-only
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Carrying Value	2,026	2,648
Agency securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Carrying Value	654	662
GNMA permanent securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Carrying Value	32,795	33,064
Corporate bonds
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Carrying Value	$ 32,372	$ 53,871
Level 3 \| CMBS \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Duration	0 months	0 years
Level 3 \| CMBS \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Duration	1 year 6 months 14 days	2 years 6 months
Level 3 \| CMBS \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Duration	7 years 1 month 6 days	7 years 9 months 10 days
Level 3 \| CMBS interest-only \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Duration	29 days	1 month 20 days
Level 3 \| CMBS interest-only \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Duration	2 years 7 months 9 days	2 years 11 months 15 days
Level 3 \| CMBS interest-only \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Duration	3 years 10 months 6 days	6 years 10 months 9 days
Level 3 \| GNMA interest-only \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Duration	0 months	14 days
Level 3 \| GNMA interest-only \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Duration	2 years 9 months 10 days	3 years 1 month 17 days
Level 3 \| GNMA interest-only \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Duration	8 years 7 months 9 days	4 years 9 months 7 days
Level 3 \| Agency securities \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Duration	0 months	0 years
Level 3 \| Agency securities \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Duration	2 years 5 months 15 days	2 years 9 months 29 days
Level 3 \| Agency securities \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Duration	3 years 2 months 1 day	3 years 9 months 25 days
Level 3 \| GNMA permanent securities \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Duration	1 year 1 month 24 days	0 years
Level 3 \| GNMA permanent securities \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Duration	7 years 9 months 3 days	5 years 7 months 13 days
Level 3 \| GNMA permanent securities \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Duration	13 years 11 months 26 days	5 years 10 months 17 days
Level 3 \| Corporate bonds \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Duration	1 year 18 days	1 year 11 months 8 days
Level 3 \| Corporate bonds \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Duration	1 year 18 days	2 years 2 months 8 days
Level 3 \| Corporate bonds \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Duration	1 year 18 days	2 years 8 months 12 days
Level 3 \| Yield \| CMBS \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.0168	0
Level 3 \| Yield \| CMBS \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.031	0.0354
Level 3 \| Yield \| CMBS \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.2055	0.2167
Level 3 \| Yield \| CMBS interest-only \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.0179	0.0087
Level 3 \| Yield \| CMBS interest-only \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.0373	0.0471
Level 3 \| Yield \| CMBS interest-only \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.0635	0.0811
Level 3 \| Yield \| GNMA interest-only \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	(0.0719)	0.0121
Level 3 \| Yield \| GNMA interest-only \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.1444	0.0554
Level 3 \| Yield \| GNMA interest-only \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.4447	0.1021
Level 3 \| Yield \| Agency securities \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0	0
Level 3 \| Yield \| Agency securities \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.0143	0.021
Level 3 \| Yield \| Agency securities \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.0185	0.0284
Level 3 \| Yield \| GNMA permanent securities \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.0343	0
Level 3 \| Yield \| GNMA permanent securities \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.1872	0.0351
Level 3 \| Yield \| GNMA permanent securities \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.8430	0.04
Level 3 \| Yield \| Corporate bonds \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.0279	0.053
Level 3 \| Yield \| Corporate bonds \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.0279	0.0535
Level 3 \| Yield \| Corporate bonds \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.0279	0.0546
Level 3 \| Prepayment speed \| CMBS interest-only \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	100.00	100.00
Level 3 \| Prepayment speed \| CMBS interest-only \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	100.00	100.00
Level 3 \| Prepayment speed \| CMBS interest-only \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	100.00	100.00
Level 3 \| Prepayment speed \| GNMA interest-only \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	5.00	5.00
Level 3 \| Prepayment speed \| GNMA interest-only \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	11.57	6.58
Level 3 \| Prepayment speed \| GNMA interest-only \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	15.00	15.00
Level 3 \| Internal Model Third Party Inputs Valuation Technique
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Carrying Value	$ 1,897,999	$ 1,398,576
Recurring \| Internal Model Third Party Inputs Valuation Technique \| CMBS
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.0314	0.0314
Duration	2 years 4 months 17 days	2 years 3 months 29 days
Recurring \| Internal Model Third Party Inputs Valuation Technique \| CMBS interest-only
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.0365	0.0280
Duration	2 years 7 months 9 days	2 years 8 months 8 days
Recurring \| Internal Model Third Party Inputs Valuation Technique \| GNMA interest-only
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.0965	0.0630
Duration	2 years 8 months 23 days	4 years 1 month 9 days
Recurring \| Internal Model Third Party Inputs Valuation Technique \| Agency securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.0174	0.0183
Duration	1 year 11 months 19 days	2 years 4 months 9 days
Recurring \| Internal Model Third Party Inputs Valuation Technique \| GNMA permanent securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.0327	0.0376
Duration	4 years 6 months 18 days	5 years 10 days
Recurring \| Internal Model Third Party Inputs Valuation Technique \| Corporate bonds
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.0481	0.0504
Duration	1 year 3 months 21 days	2 years 6 months 3 days
Recurring \| Level 3 \| Internal Model Third Party Inputs Valuation Technique \| CMBS
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Carrying Value	$ 1,788,712	$ 1,252,640
Recurring \| Level 3 \| Internal Model Third Party Inputs Valuation Technique \| CMBS interest-only
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Carrying Value	41,440	55,691
Recurring \| Level 3 \| Internal Model Third Party Inputs Valuation Technique \| GNMA interest-only
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Carrying Value	2,026	2,648
Recurring \| Level 3 \| Internal Model Third Party Inputs Valuation Technique \| Agency securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Carrying Value	654	662
Recurring \| Level 3 \| Internal Model Third Party Inputs Valuation Technique \| GNMA permanent securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Carrying Value	32,795	33,064
Recurring \| Level 3 \| Internal Model Third Party Inputs Valuation Technique \| Corporate bonds
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Carrying Value	$ 32,372	$ 53,871

FAIR VALUE OF FINANCIAL INSTRUMENTS - Nonrecurring Fair Values (Details) - USD ($) $ in Thousands		3 Months Ended			9 Months Ended
	May 01, 2019	Sep. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Fair Value Disclosures [Abstract]
Impairment of real estate		$ 0	$ 1,400	$ 0	$ 1,350	$ 0
Operating lease income	$ 3,900	24,405			81,106
Loss on sale of real estate	3,500
Depreciation and amortization	400	$ 9,030		$ 10,417	$ 29,192	$ 31,896
Loss on sale of real estate	$ 20

The net gain (loss) resulting from sales and other disposals of real estate owned for investment purposes.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=118932676&loc=d3e3602-108585

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(b)(9)(a))
-URI http://asc.fasb.org/extlink&oid=116634182&loc=SL114868664-224227

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 360
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=117337411&loc=d3e23528-158515

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(b)(7)(c))
-URI http://asc.fasb.org/extlink&oid=116634182&loc=SL114868664-224227

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(14)(d))
-URI http://asc.fasb.org/extlink&oid=116637391&loc=SL114874048-224260

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 360
-Section 45
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=117337397&loc=d3e23439-158514

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(3)(a))
-URI http://asc.fasb.org/extlink&oid=116637232&loc=SL114874131-224263

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 360
-Section 45
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=117337397&loc=d3e23415-158514

+ Details

INCOME TAXES (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

12 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2019

Sep. 30, 2018

Dec. 31, 2018

Income tax expense (benefit)

$ 400

$ 7,200

$ (6,900)

$ 10,200

$ 3,300

Deferred income tax expense (benefit)

700

$ (6,000)

7,400

$ (4,500)

Deferred tax asset related to capital losses

10,000

$ 10,000

Fees and other income

2,500

Applicable cash savings

85.00%

Applicable cash savings available to entity

15.00%

Amount payable pursuant to tax receivable agreement

^[1]

1,559

$ 1,559

1,570

Other assets

Deferred tax liabilities

4,700

Deferred tax asset

2,300

Accrued Liabilities

Unrecognized tax benefits

200

800

Amount of unrecognized tax benefit released due to statue of limitations

600

Amount Payable Pursuant to Tax Receivable Agreement

Amount payable pursuant to tax receivable agreement

$ 1,600

[1]	Includes amounts relating to consolidated variable interest entities. See Note 10.

RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions		3 Months Ended	9 Months Ended
	Mar. 03, 2017	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Mar. 05, 2019	Dec. 12, 2018	Mar. 13, 2017	Oct. 18, 2016
Affiliated Entity
RELATED PARTY TRANSACTIONS
Investment in mutual fund			$ 0.8					$ 10.0
Fee earned on assets under management			0.75%
Fund's cap expense			0.95%
Affiliated Entity \| Related Reserve IV LLC \| B Participation Interest
RELATED PARTY TRANSACTIONS
Mortgage loan participation purchased by related party							$ 4.0
Participating mortgage loan amount (up to)							$ 136.5
Percentage of loans receivable with fixed rates of interest							17.00%
Affiliated Entity \| Related Reserve IV LLC \| B Participation Interest \| Participation Financing - Mortgage Loan Receivable
RELATED PARTY TRANSACTIONS
Interest expense, debt		$ 0.1	$ 0.2	$ 0.4
Affiliated Entity \| Brickell Heights Commercial LLC \| First mortgage loan
RELATED PARTY TRANSACTIONS
Loans receivable from related party					$ 14.3	$ 6.4
Related \| Class A Common Stock
RELATED PARTY TRANSACTIONS
Related party purchases of shares from shareholders	$ 80.0
Consolidated Joint Venture \| Brickell Heights Commercial LLC \| First mortgage loan \| Woodbury, New York
RELATED PARTY TRANSACTIONS
Interest income, related party			0.1
Consolidated Joint Venture \| Brickell Heights Commercial LLC \| First mortgage loan \| Bloomfield Heights, Michigan
RELATED PARTY TRANSACTIONS
Interest income, related party			$ 0.3
Consolidated Joint Venture \| Related Special Assets LLC \| Brickell Heights Commercial LLC
RELATED PARTY TRANSACTIONS
Ownership Interest					0.70%	12.00%

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Jan. 01, 2019	Dec. 31, 2018
Unfunded Loan Commitments
Tenant reimbursements	$ 1.3	$ 2.3	$ 4.6	$ 7.8
Provision for loan losses
Unfunded Loan Commitments
Unfunded commitments of mortgage loan receivables held for investment	257.7		257.7			$ 379.8
Accounting Standards Update 2016-02
Unfunded Loan Commitments
Operating lease liability	2.7		2.7		$ 3.5
Operating lease, right-of-use asset	$ 2.7		$ 2.7		$ 3.3

SEGMENT REPORTING - Additional Information (Details)	9 Months Ended
SEGMENT REPORTING - Additional Information (Details)	Sep. 30, 2019 segment
Segment Reporting [Abstract]
Number of reportable segments	3

SEGMENT REPORTING - Schedule of Segments (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

May 01, 2019

Feb. 06, 2019

Sep. 30, 2019

Mar. 31, 2019

Sep. 30, 2018

Sep. 30, 2019

Sep. 30, 2018

Dec. 31, 2018

$ 82,251

$ 90,386

$ 254,040

$ 253,822

(51,397)

(51,476)

(155,015)

(144,606)

30,854

38,910

99,025

109,216

Net interest income after provision for loan losses

0

(10,300)

(600)

(13,600)

30,854

28,610

98,425

95,616

$ 3,900

24,405

81,106

24,997

79,306

11,247

1,861

38,589

12,893

3,396

(2,554)

10,726

(4,896)

Unrealized gain (loss) on Agency interest-only securities

254

0

1,341

0

16

142

38

456

2,082

63,704

963

96,341

0

$ (1,400)

0

(1,350)

0

5,166

4,851

17,047

17,579

Earnings (loss) from investment in unconsolidated joint ventures

(9,465)

7,115

(35,956)

29,156

1,094

401

3,617

466

$ (1,100)

0

(4,323)

(1,070)

(4,392)

38,195

96,194

115,051

226,909

(14,319)

(15,792)

(52,800)

(46,754)

(5,314)

(5,464)

(16,727)

(16,608)

(6,270)

(7,152)

(17,776)

(23,806)

(2,056)

(1,311)

(4,951)

(2,953)

$ (400)

(9,030)

(10,417)

(29,192)

(31,896)

(36,989)

(40,136)

(121,446)

(122,017)

(1,112)

(1,204)

(478)

(5,679)

30,948

83,464

91,552

194,829

^[1]

6,619,874

$ 6,272,872

^[1]

51,419

40,354

Investment in FHLB stock

^[1]

61,619

57,915

Professional fees

3,000

2,900

9,100

8,700

Operating Segment

Operating Segment | Loans

51,400

40,400

66,422

81,779

209,369

228,273

(12,063)

(17,232)

(41,043)

(46,286)

54,359

64,547

168,326

181,987

Net interest income after provision for loan losses

0

(10,300)

(600)

(13,600)

54,359

54,247

167,726

168,387

0

0

11,247

1,861

38,589

12,893

0

Unrealized gain (loss) on Agency interest-only securities

0

0

0

0

3,839

3,895

13,095

10,823

Earnings (loss) from investment in unconsolidated joint ventures

(6,557)

3,741

(20,273)

14,516

0

0

(69)

8,529

9,497

31,411

38,163

0

0

61

0

61

0

(1,264)

(928)

(3,516)

(2,160)

0

(1,264)

(867)

(3,516)

(2,099)

0

61,624

62,877

195,621

204,451

Operating Segment | Securities

3,387,157

3,482,929

15,515

8,541

43,844

25,217

(5,632)

(1,482)

(12,250)

(3,423)

9,883

7,059

31,594

21,794

Net interest income after provision for loan losses

0

9,883

7,059

31,594

21,794

0

0

0

3,396

(2,554)

10,726

(4,896)

Unrealized gain (loss) on Agency interest-only securities

254

1,341

16

142

38

456

0

0

428

0

1,165

72

Earnings (loss) from investment in unconsolidated joint ventures

(2,908)

3,374

(15,683)

14,640

0

0

1,186

962

(2,413)

10,272

0

0

0

(92)

(91)

(280)

(297)

0

(92)

(91)

(280)

(297)

0

10,977

7,930

28,901

31,769

Operating Segment | Real Estate

1,911,456

1,410,126

7

6

21

16

(9,646)

(9,213)

(27,620)

(25,799)

(9,639)

(9,207)

(27,599)

(25,783)

Net interest income after provision for loan losses

0

(9,639)

(9,207)

(27,599)

(25,783)

24,405

81,106

24,997

79,306

0

0

Unrealized gain (loss) on Agency interest-only securities

0

0

2,082

63,704

963

96,341

(1,350)

0

7

3,416

Earnings (loss) from investment in unconsolidated joint ventures

0

1,094

401

3,617

466

(4,323)

(1,070)

(4,323)

27,581

84,779

83,273

175,206

0

0

(6,270)

(7,152)

(17,776)

(23,806)

(700)

(292)

(1,155)

(496)

(9,005)

(10,398)

(29,118)

(31,840)

(15,975)

(17,842)

(48,049)

(56,142)

0

1,967

57,730

7,625

93,281

1,032,752

1,038,376

Corporate/Other

307

60

806

316

(24,056)

(23,549)

(74,102)

(69,098)

(23,749)

(23,489)

(73,296)

(68,782)

Net interest income after provision for loan losses

0

(23,749)

(23,489)

(73,296)

(68,782)

0

0

0

0

Unrealized gain (loss) on Agency interest-only securities

0

0

0

0

899

956

2,780

3,268

Earnings (loss) from investment in unconsolidated joint ventures

0

0

0

899

956

2,780

3,268

(14,319)

(15,792)

(52,800)

(46,754)

(5,314)

(5,525)

(16,727)

(16,669)

0

0

(25)

(19)

(74)

(56)

(19,658)

(21,336)

(69,601)

(63,479)

(1,112)

(1,204)

(478)

(5,679)

(43,620)

$ (45,073)

(140,595)

$ (134,672)

Corporate/Other | Senior Unsecured Notes

288,509

341,441

Investment in FHLB stock

61,600

57,900

Deferred tax (liability)

(4,700)

Deferred tax asset

2,300