View Filing Data

Print Document View Excel Document

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2018	May 11, 2018
Document Information [Line Items]
Entity Registrant Name	Colony Northstar Credit Real Estate, Inc.
Entity Central Index Key	0001717547
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1
Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		83,487,352
Class B-3
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		44,399,444

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Assets
Cash and cash equivalents	$ 334,952	$ 25,204
Restricted cash	117,443	41,901
Loans held for investment, net	1,816,218	1,300,784
Real estate securities, available for sale, at fair value	176,194	0
Real estate, net	1,495,096	219,740
Investments in unconsolidated ventures ($257,495 and $24,417 at fair value, respectively)	756,468	203,720
Receivables, net	60,999	35,512
Deferred leasing costs and intangible assets, net	113,239	11,014
Other assets	56,998	1,527
Mortgage loans held in securitization trusts, at fair value	3,193,298	0
Total assets	8,120,905	1,839,402
Liabilities
Securitization bonds payable, net	172,113	108,679
Mortgage and other notes payable, net	924,018	280,982
Credit facilities	602,277	0
Due to related party (Note 11)	12,649	0
Accrued and other liabilities	49,896	5,175
Intangible liabilities, net	19,637	36
Escrow deposits payable	67,757	36,960
Dividends payable	18,994	0
Mortgage obligations issued by securitization trusts, at fair value	3,051,315	0
Total liabilities	4,918,656	431,832
Commitments and contingencies (Note 10)
Stockholders’ equity
Preferred stock, $0.01 par value, 50,000,000 shares authorized, no shares issued and outstanding as of March 31, 2018 and December 31, 2017	0	0
Additional paid-in capital	2,894,492	821,031
Retained earnings	136,446	258,777
Accumulated other comprehensive income (loss)	(1,848)	0
Total stockholders’ equity	3,030,369	1,079,808
Noncontrolling interests in investment entities	98,311	327,762
Noncontrolling interests in the Operating Partnership	73,569	0
Total equity	3,202,249	1,407,570
Total liabilities and equity	8,120,905	1,839,402
Primary beneficiary
Assets
Cash and cash equivalents	45,309	1,320
Restricted cash	29,281	24,928
Real estate securities, available for sale, at fair value	459,882	379,305
Real estate, net	734,815	8,073
Receivables, net	48,869	11,994
Deferred leasing costs and intangible assets, net	69,709	0
Other assets	3,197	38
Mortgage loans held in securitization trusts, at fair value	3,193,298	0
Total assets	4,584,360	425,658
Liabilities
Securitization bonds payable, net	91,320	108,679
Mortgage and other notes payable, net	433,054	0
Accrued and other liabilities	29,410	3,764
Intangible liabilities, net	15,562	0
Escrow deposits payable	19,260	24,928
Mortgage obligations issued by securitization trusts, at fair value	3,051,315	0
Total liabilities	3,639,921	137,371
Class A
Stockholders’ equity
Common stock	835	0
Class B-3
Stockholders’ equity
Common stock	$ 444	$ 0

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Investments under fair value option	$ 257,495	$ 24,417
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Class A
Common stock, shares authorized (in shares)	905,000,000	905,000,000
Common stock, shares issued (in shares)	83,487,352	100
Common stock, shares outstanding (in shares)	83,487,352	100
Class B-3
Common stock, shares authorized (in shares)	45,000,000	45,000,000
Common stock, shares issued (in shares)	44,399,000	0
Common stock, shares outstanding (in shares)	44,399,000	0

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Net interest income
Interest income	$ 36,139	$ 35,151
Interest expense on loans held for investment	(7,415)	(6,104)
Interest income on mortgage loans held in securitization trusts	25,865	0
Interest expense on mortgage obligations issued by securitization trusts	(24,278)	0
Net interest income	30,311	29,047
Property and other income
Property operating income	28,545	5,139
Other income	517	161
Total property and other income	29,062	5,300
Expenses
Management fee expense	8,000	0
Property operating expense	11,719	1,611
Transaction, investment and servicing expense	30,941	701
Interest expense on real estate	6,393	976
Depreciation and amortization	18,792	2,285
Administrative expense (including $285 and $0 of equity-based compensation expense, respectively)	3,228	3,012
Total expenses	79,073	8,585
Other income (loss)
Unrealized gain on mortgage loans and obligations held in securitization trusts, net	497	0
Other gain on investments, net	465	0
Income (loss) before equity in earnings of unconsolidated ventures and income taxes	(18,738)	25,762
Equity in earnings of unconsolidated ventures	15,788	6,038
Income tax benefit	549	223
Net income (loss)	(2,401)	32,023
Net (income) loss attributable to noncontrolling interests:
Investment entities	(2,370)	(9,137)
Operating Partnership	57	0
Net income (loss) attributable to Colony NorthStar Credit Real Estate, Inc. common stockholders	$ (4,714)	$ 22,886
Net income (loss) per common share - basic and diluted (Note 17) (in dollars per share)	$ (0.05)	$ 0.47
Weighted average shares of common stock outstanding, basic and diluted	98,662	44,399
Dividends declared per share of common stock (in dollars per share)	$ 0.29	$ 0.00

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Equity-based compensation expense	$ 285,000	$ 0

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (2,401)	$ 32,023
Other comprehensive income (loss)
Unrealized loss on real estate securities, available for sale	(1,848)	0
Total other comprehensive loss	(1,848)	0
Comprehensive income (loss)	(4,249)	32,023
Comprehensive (income) loss attributable to noncontrolling interests:
Net income attributable to noncontrolling interests, investment entities	(2,370)	(9,137)
Net income attributable to noncontrolling interests, operating partnerships	57	0
Comprehensive income (loss) attributable to common stockholders	$ (6,562)	$ 22,886

CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Total Company’s Stockholders’ Equity	Additional Paid-in Capital	Retained Earnings (Accumulated Deficit)	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interests in Investment Entities	Noncontrolling interests in The OP	Class A Common Stock	Class B-3 Common Stock
Beginning balance (in shares) at Dec. 31, 2016								0	0
Beginning balance at Dec. 31, 2016	$ 1,235,564	$ 884,716	$ 714,443	$ 170,273	$ 0	$ 350,848	$ 0	$ 0	$ 0
Increase (Decrease) in Stockholders' Equity
Contributions	368,756	354,219	354,219			14,537
Distributions	(33,609)	(17,276)	(17,276)			16,333
Other comprehensive income (loss)	0
Net income (loss)	32,023	22,886		22,886		9,137
Ending balance (in shares) at Mar. 31, 2017								0	0
Ending balance at Mar. 31, 2017	1,602,734	1,244,545	1,051,386	193,159	0	358,189	0	$ 0	$ 0
Beginning balance (in shares) at Dec. 31, 2017								0	0
Beginning balance at Dec. 31, 2017	1,407,570	1,079,808	821,031	258,777	0	327,762	0	$ 0	$ 0
Increase (Decrease) in Stockholders' Equity
Distributions	(1,003)					(1,003)
Combination consideration (in shares)								82,484	44,399
Adjustments related to the Combination	1,837,489	1,994,681	2,073,186	(79,774)		(230,818)	73,626	$ 825	$ 444
Issuance and amortization of equity-based compensation (in shares)								1,004
Issuance and amortization of equity-based compensation	285	285	275					$ 10
Other comprehensive income (loss)	(1,848)	(1,848)			(1,848)
Common stock dividends declared	(37,843)	(37,843)		(37,843)
Net income (loss)	(2,401)	(4,714)		(4,714)		2,370	(57)
Ending balance (in shares) at Mar. 31, 2018								83,488	44,399
Ending balance at Mar. 31, 2018	$ 3,202,249	$ 3,030,369	$ 2,894,492	$ 136,446	$ (1,848)	$ 98,311	$ 73,569	$ 835	$ 444

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net income (loss)	$ (2,401)	$ 32,023
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Equity in earnings of unconsolidated ventures	(15,788)	(6,038)
Depreciation and amortization	18,792	2,285
Straight-line rental income	(1,373)	(60)
Amortization of above/below market lease values, net	104	67
Amortization of premium/accretion of discount and fees on investments and borrowings, net	(1,772)	(1,486)
Amortization of deferred financing costs	384	828
Interest accretion on investments	(530)	(1,878)
Distributions of cumulative earnings from unconsolidated ventures	13,687	1,829
Unrealized gain (loss) on mortgage loans and obligations held in securitization trusts, net	(497)	0
Amortization of equity-based compensation	285	0
Mortgage notes above/below market value amortization	(173)	0
Deferred income tax (benefit) expense	(88)	0
Changes in assets and liabilities:
Restricted cash	(882)	469
Receivables, net	16,572	0
Deferred costs and other assets	(13,883)	2,923
Due to related party	3,340	0
Other liabilities	1,499	208
Net cash provided by operating activities	17,276	31,170
Cash flows from investing activities:
Origination and funding of loans held for investment, net	(5,059)	(52,989)
Repayment on loans held for investment	115,724	74,371
Cash received in the Combination	225,169	6,509
Proceeds from sale of real estate	0	8,916
Improvements of real estate	(2,735)	0
Investments in unconsolidated ventures	(1,730)	(4,129)
Distributions in excess of cumulative earnings from unconsolidated ventures	21,739	5,751
Acquisition of real estate securities, available for sale	(11,762)	0
Change in restricted cash	(1,343)	(142)
Net cash provided by investing activities	340,003	38,287
Cash flows from financing activities:
Distributions paid on common stock	(18,849)	0
Borrowings from mortgage notes	41,823	18,043
Repayment of mortgage notes	(762)	(64,048)
Borrowings from credit facilities	25,149	0
Repayment of credit facilities	(71,740)	0
Repayment of securitization bonds	(17,474)	0
Payment of deferred financing costs	(4,675)	0
Contributions	0	35,956
Distributions	(1,003)	(33,609)
Net cash used in financing activities	(47,531)	(43,658)
Net increase in cash and cash equivalents	309,748	25,799
Cash and cash equivalents - beginning of period	25,204	13,982
Cash and cash equivalents - end of period	334,952	39,781
Supplemental disclosure of non-cash investing and financing activities:
Noncontrolling interests assumed in Combination (refer to Note 3)	82,320	0
Common stock issued for acquisition of NorthStar I and NorthStar II (refer to Note 3)	2,021,373	0
Deconsolidation of certain CLNS Contributed Portfolio investments (refer to Note 2)	313,133	0
Secured Financing (refer to Note 4)	50,314	0
Other Payables to Manager adjustment (refer to Note 11)	2,934	0
Noncontrolling interests in the OP	73,626	0
Consolidation of securitization trust (VIE asset / liability)	134,398	0
Escrow deposits payable related to loans held for investment	3,856	0
Accrual of distribution payable	18,994	0
Non-cash distributions related to unconsolidated ventures	0	933
Loans held for investment payoff due from servicer	21,189	37,335
Foreclosures on collateral assets of originated or acquired loans held for investment	0	8,789
NorthStar I and NorthStar II
Supplemental disclosure of non-cash investing and financing activities:
Assets acquired	6,916,046	0
Liabilities assumed	4,812,353	0
CLNS
Supplemental disclosure of non-cash investing and financing activities:
Assets acquired	0	485,891
Liabilities assumed	$ 0	$ 161,533

Business and Organization	3 Months Ended
Business and Organization	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business and Organization	Business and Organization Colony NorthStar Credit Real Estate, Inc. (the “Company”) is a commercial real estate (“CRE”) credit real estate investment trust (“REIT”) focused on originating, acquiring, financing and managing a diversified portfolio consisting primarily of CRE senior mortgage loans, mezzanine loans, preferred equity, debt securities and net leased properties predominantly in the United States. CRE debt investments include senior mortgage loans, mezzanine loans, preferred equity, and participations in such loans and preferred equity interests. CRE debt securities primarily consist of commercial mortgage-backed securities (“CMBS”) (including “B-pieces” of a CMBS securitization pool) or CRE collateralized loan obligations (“CLOs”) (collateralized by pools of CRE debt investments). Net leased properties consist of CRE properties with long-term leases to tenants on a net-lease basis, where such tenants generally will be responsible for property operating expenses such as insurance, utilities, maintenance capital expenditures and real estate taxes. The Company was organized in the state of Maryland on August 23, 2017. On September 15, 2017, Colony NorthStar, Inc., (“Colony NorthStar”), a publicly traded REIT listed on the New York Stock Exchange (“NYSE”) under the ticker symbol “CLNS,” made an initial capital contribution of $1,000 to the Company. On January 31, 2018, the Company completed the transactions contemplated by that certain Master Combination Agreement, dated as of August 25, 2017, as amended and restated on November 20, 2017 (the “Combination Agreement,” as further discussed below). The Company intends to qualify as a REIT under the Internal Revenue Code of 1986, as amended, beginning with its taxable year ending December 31, 2018. The Company conducts all of its activities and holds substantially all of its assets and liabilities through its operating subsidiary, Credit RE Operating Company, LLC (the “Operating Partnership” or “OP”). At March 31, 2018, the Company owned 97.6% of the OP, as its sole managing member. The remaining 2.4% is owned primarily by an affiliate of the Company as noncontrolling interests. The Company is externally managed and has no employees. The Company is managed by CLNC Manager, LLC (the “Manager”), a Delaware limited liability company and a wholly-owned and indirect subsidiary of Colony Capital Operating Company, LLC (“CLNS OP”), a Delaware limited liability company and the operating company of Colony NorthStar. Colony NorthStar manages capital on behalf of its stockholders, as well as institutional and retail investors in private funds, non-traded and traded REITs and registered investment companies. The Combination Pursuant to the Combination Agreement, (i) CLNS OP contributed and conveyed to the Company a select portfolio of assets and liabilities (the “CLNS OP Contributed Portfolio”) of CLNS OP (the “CLNS OP Contribution”), (ii) NRF RED REIT Corp., a Maryland corporation and indirect subsidiary of CLNS OP (“RED REIT”) contributed and conveyed to the OP a select portfolio of assets and liabilities (the “RED REIT Contributed Portfolio” and, together with the CLNS OP Contributed Portfolio, the “CLNS Contributed Portfolio”) of RED REIT (the “RED REIT Contribution” and, together with the CLNS OP Contribution, the “CLNS Contributions”), (iii) NorthStar Real Estate Income Trust, Inc. (“NorthStar I”), a publicly registered non-traded REIT sponsored and managed by a subsidiary of Colony NorthStar, merged with and into the Company, with the Company surviving the merger (the “NorthStar I Merger”), (iii) NorthStar Real Estate Income II, Inc. (“NorthStar II”), a publicly registered non-traded REIT sponsored and managed by a subsidiary of Colony NorthStar, merged with and into the Company, with the Company surviving the merger (the “NorthStar II Merger” and, together with the NorthStar I Merger, the “Mergers”), and (v) immediately following the Mergers, the Company contributed and conveyed to the OP the CLNS OP Contributed Portfolio and the equity interests of each of NorthStar Real Estate Income Trust Operating Partnership, LP, a Delaware limited partnership and the operating partnership of NorthStar I, and NorthStar Real Estate Income Operating Partnership II, LP, a Delaware limited partnership and the operating partnership of NorthStar II, then-owned by the Company in exchange for units of membership interest in the OP (the “Company Contribution” and, collectively with the Mergers and the CLNS Contributions, the “Combination”). On January 18, 2018, the Combination was approved by the stockholders of NorthStar I and NorthStar II. The Combination closed on January 31, 2018 (the “Closing Date”) and the Company’s Class A common stock began trading on the NYSE on February 1, 2018 under the symbol “CLNC.” The Combination is accounted for under the acquisition method for business combinations pursuant to Accounting Standards Codification (“ASC”) Topic 805, Business Combinations, with the Company as the accounting acquirer. Details of the Combination are described more fully in Note 3, “Business Combinations” and the accounting treatment thereof in Note 2, “Summary of Significant Accounting Policies.”

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited interim financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and footnotes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements. These statements reflect all normal and recurring adjustments which, in the opinion of management, are necessary to present fairly the financial position, results of operations and cash flows of the Company for the interim periods presented. However, the results of operations for the interim period presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2018, or for any other future period. These interim financial statements should be read in conjunction with the audited consolidated financial statements of the CLNS Investment Entities, NorthStar I and NorthStar II and notes thereto included in, or presented as exhibits to, the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017.

The consolidated financial statements include the results of operations of Colony NorthStar Credit Real Estate, Inc. and the consolidated CLNS Investment Entities for periods on or prior to the closing of the Combination on January 31, 2018 and the combined operations of Colony NorthStar Credit Real Estate, Inc., NorthStar I and NorthStar II beginning February 1, 2018, following the closing of the Combination.

The assets and liabilities contributed by CLNS to the Company consisted of its ownership interests in certain investment entities (the “CLNS Investment Entities”), ranging from 38% to 100%. The remaining interests in the CLNS Investment Entities are owned by investment vehicles sponsored by Colony NorthStar or third parties and were not contributed to the Company.

The CLNS Contributions were accounted for as a reorganization of entities under common control, since both the Company and CLNS Investment Entities were under common control of Colony NorthStar at the time the contributions were made. Accordingly, the contributed assets and liabilities were recorded at carryover basis and the Company’s financial statements for prior periods were recast to reflect the consolidation of the CLNS Investment Entities as if the contribution had occurred on the date of the earliest period presented. The assets, liabilities and noncontrolling interests of the CLNS Investment Entities in the consolidated financial statements for periods prior to the Combination were carved out of the books and records of Colony NorthStar at their historical carrying amounts. Accordingly, the historical consolidation financial statements were prepared giving consideration to the rules and regulations of the Securities and Exchange Commission (“SEC”) and related guidance provided by the SEC Staff with respect to carve-out financial statements and reflect allocations of certain corporate costs from Colony NorthStar. These charges were based on either specifically identifiable costs incurred on behalf of the CLNS Investment Entities or an allocation of costs estimated to be applicable to the CLNS Investment Entities, primarily based on the relative assets under management of the CLNS Investment Entities to Colony NorthStar’s total assets under management. Such costs do not necessarily reflect what the actual costs would have been if the Company had been operating as a separate stand-alone public entity for periods prior to the Combination.

Following the Combination, the Company reconsidered whether it was the primary beneficiary of certain variable interest entities (“VIEs”), which resulted in the deconsolidation of certain CLNS Investment Entities and the consolidation of certain securitization trusts in which NorthStar I or NorthStar II held an interest, as more fully described below. Accordingly, comparisons of financial information for periods prior the Combination with subsequent periods may not be meaningful.

The Combination

The Combination is accounted for under the acquisition method for business combinations pursuant to ASC Topic 805, Business Combinations. In the Combination, the Company was considered to be the accounting acquirer so all of its assets and liabilities immediately prior to the closing of the Combination are reflected at their historical carrying values. The consideration transferred by the Company established a new accounting basis for the assets acquired, liabilities assumed and noncontrolling interests of NorthStar I and NorthStar II, which were measured at their respective fair values on the Closing Date of the Combination.

Formation of Colony NorthStar

Colony NorthStar was formed through a tri-party merger (the “CLNS Merger”) among Colony Capital, Inc. (“Colony Capital”), NorthStar Asset Management Group Inc. and NorthStar Realty Finance Corp. (“NRF”), which closed on January 10, 2017 (the “CLNS Merger Closing Date”). Colony Capital was determined to be the accounting acquirer in the CLNS Merger. Accordingly, the combined financial information of the CLNS Investment Entities included herein as of any date or for any periods on or prior to the CLNS Merger Closing Date represent the CLNS Investment Entities from Colony Capital. On the CLNS Merger Closing Date, the CLNS Investment Entities were reflected by Colony NorthStar at their pre-CLNS Merger carrying values, while the CLNS Investment Entities from NRF were reflected by Colony NorthStar at their CLNS Merger fair values. The results of operations of the CLNS Investment Entities from NRF are included in these pre-Combination financial statements effective from January 11, 2017.

Principles of Consolidation

The accompanying combined financial statements include the accounts of the Company and their controlled subsidiaries and consolidated VIEs. The portions of the equity, net income and other comprehensive income of consolidated subsidiaries that are not attributable to the parent are presented separately as amounts attributable to noncontrolling interests in the consolidated financial statements.

The Company consolidates entities in which they have a controlling financial interest by first considering if an entity meets the definition of a VIE for which the Company is deemed to be the primary beneficiary, or if the Company has the power to control an entity through a majority of voting interest or through other arrangements.

Variable Interest Entities

A VIE is an entity that lacks one or more of the characteristics of a voting interest entity. A VIE is defined as an entity in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The determination of whether an entity is a VIE includes both a qualitative and quantitative analysis. The Company bases its qualitative analysis on its review of the design of the entity, its organizational structure including decision-making ability and relevant financial agreements and the quantitative analysis on the forecasted cash flow of the entity. The Company reassesses its initial evaluation of an entity as a VIE upon the occurrence of certain reconsideration events.

A VIE must be consolidated only by its primary beneficiary, which is defined as the party who, along with its affiliates and agents has both the: (i) power to direct the activities that most significantly impact the VIE’s economic performance; and (ii) obligation to absorb the losses of the VIE or the right to receive the benefits from the VIE, which could be significant to the VIE. The Company determines whether it is the primary beneficiary of a VIE by considering qualitative and quantitative factors, including, but not limited to: which activities most significantly impact the VIE’s economic performance and which party controls such activities; the amount and characteristics of its investment; the obligation or likelihood for the Company or other interests to provide financial support; consideration of the VIE’s purpose and design, including the risks the VIE was designed to create and pass through to its variable interest holders and the similarity with and significance to the business activities of the Company and the other interests. The Company reassesses its determination of whether it is the primary beneficiary of a VIE each reporting period. Significant judgments related to these determinations include estimates about the current and future fair value and performance of investments held by these VIEs and general market conditions.

The Company evaluates its investments and financings, including investments in unconsolidated ventures and securitization financing transactions, if any, to determine whether each investment or financing is a VIE. The Company analyzes new investments and financings, as well as reconsideration events for existing investments and financings, which vary depending on type of investment or financing.

As of March 31, 2018, the Company has identified certain consolidated and unconsolidated VIEs. Assets of each of the VIEs, other than the OP, may only be used to settle obligations of the respective VIE. Creditors of each of the VIEs have no recourse to the general credit of the Company.

Consolidated VIEs

The Company's operating subsidiary, the OP, is a limited liability company that has governing provisions that are the functional equivalent of a limited partnership. The Company holds the majority of membership interest in the OP, is the managing member of the OP and exercises full responsibility, discretion and control over the day-to-day management of the OP. The noncontrolling interests in the OP do not have substantive liquidation rights, or substantive kick-out rights without cause, or substantive participating rights that could be exercised by a simple majority of noncontrolling interest members (including by such a member unilaterally). The absence of such rights, which represent voting rights in a limited partnership equivalent structure, would render the OP to be a VIE. The Company, as managing member, has the power to direct the core activities of the OP that most significantly affect OP's performance, and through its majority interest in the OP, has both the right to receive benefits from and the obligation to absorb losses of OP. Accordingly, the Company is the primary beneficiary of the OP and consolidates the OP. As the Company conducts its business and holds its assets and liabilities through the OP, the total assets and liabilities of the OP represent substantially all of the total consolidated assets and liabilities of the Company.

Other consolidated VIEs include the Investing VIEs (as discussed below) and certain properties that have noncontrolling interests. These noncontrolling interests do not have substantive kick-out or participating rights.

Investing VIEs

The Company’s investments in securitization financing entities (“Investing VIEs”) include subordinate first-loss tranches of securitization trusts, which represent interests in such VIEs. Investing VIEs are structured as pass through entities that receive principal and interest payments from the underlying debt collateral assets and distribute those payments to the securitization trust’s certificate holders, including the most subordinate tranches of the securitization trust. Generally, a securitization trust designates the most junior subordinate tranche outstanding as the controlling class, which entitles the holder of the controlling class to unilaterally appoint and remove the special servicer for the trust, and as such may qualify as the primary beneficiary of the trust.

If it is determined that the Company is the primary beneficiary of an Investing VIE as a result of acquiring the subordinate first-loss tranches of the securitization trust, the Company would consolidate the assets, liabilities, income and expenses of the entire Investing VIE. The assets held by an Investing VIE are restricted and can only be used to fulfill its own obligations. The obligations of an Investing VIE have neither any recourse to the general credit of the Company as the consolidator of an Investing VIE, nor to any of the Company’s other consolidated entities.

As of March 31, 2018, the Company held subordinate tranches of securitization trusts in three Investing VIEs for which the Company has determined it is the primary beneficiary because it has the power to direct the activities that most significantly impact the economic performance of the securitization trusts. The Company’s subordinate tranches of the securitization trusts, which represent the retained interest and related interest income, are eliminated in consolidation. In accordance with the Financial Accounting Standards Board (“FASB”) ASC 810, Consolidation, all of the assets, liabilities (obligations to the certificate holders of the securitization trusts, less the Company’s retained interest from the subordinate tranches of the securitization trusts), income and expense of the Investing VIEs are presented in the consolidated financial statements of the Company. As a result, although the Company legally owns the subordinate tranches of the securitization trusts only, U.S. GAAP requires the Company to present the assets, liabilities, income and expenses of the entire securitization trust on its consolidated financial statements. Regardless of the presentation, the Company’s consolidated financial statements of operations ultimately reflect the net income attributable to its retained interest in the subordinate tranches of the securitization trusts. Refer to Note 7, “Real Estate Securities, Available for Sale” for further discussion.

The Company elected the fair value option for the initial recognition of the assets and liabilities of its consolidated Investing VIEs. Interest income and interest expense associated with the Investing VIEs will be recorded separately on the consolidated statements of operations. The Company will separately present the assets and liabilities of its consolidated Investing VIEs as “Mortgage loans held in securitization trusts, at fair value” and “Mortgage obligations issued by securitization trusts, at fair value,” respectively, on its consolidated balance sheets. Refer to Note 15, “Fair Value” for further discussion.

The Company has adopted guidance issued by the FASB, allowing the Company to measure both the financial assets and liabilities of a qualifying collateralized financing entity (“CFE”), such as its Investing VIEs, using the fair value of either the CFE’s financial assets or financial liabilities, whichever is more observable. A CFE is a VIE that holds financial assets, issues beneficial interests in those assets and has no more than nominal equity, and the beneficial interests have contractual recourse only to the related assets of the CFE. As the liabilities of the Company’s Investing VIEs are marketable securities with observable trade data, their fair value is more observable and is referenced to determine the fair value for assets of its Investing VIEs. Refer to Note 15, “Fair Value” for further discussion.

Unconsolidated VIEs

As of March 31, 2018, the Company identified unconsolidated VIEs related to its securities investments, indirect interests in real estate through real estate private equity funds (“PE Investments”) and CRE debt investments. Assets of each of the VIEs may only be used to settle obligations of the respective VIE. Creditors of each of the VIEs have no recourse to the general credit of the Company.

The following table presents the Company’s classification, carrying value and maximum exposure of unconsolidated VIEs as of March 31, 2018 (dollars in thousands):



	Carrying Value		Maximum Exposure to Loss
Real estate securities, available for sale	$	176,194	$	176,194
Investments in unconsolidated ventures	379,018		379,018
Loans held for investment, net	340,448		342,600
Total assets	$	895,660	$	897,812

Based on management’s analysis, the Company determined that it is not the primary beneficiary of the above VIEs. Accordingly, the VIEs are not consolidated in the Company’s financial statements as of March 31, 2018. The Company did not provide financial support to the unconsolidated VIEs during the three months ended March 31, 2018. As of March 31, 2018, there were no explicit arrangements or implicit variable interests that could require the Company to provide financial support to the unconsolidated VIEs.

Deconsolidation of the CLNS Investment Entities

Certain CLNS Investment Entities were joint ventures between Colony NorthStar and private funds or other investment vehicles managed by Colony NorthStar (the “Co-Investment Funds”). Colony NorthStar consolidated such CLNS Investment Entities as it was deemed to have a controlling financial interest in these CLNS Investment Entities. After assuming Colony NorthStar’s ownership interests in these CLNS Investment Entities and upon the merger with NorthStar I and NorthStar II, the Company does not have a controlling financial interest in these CLNS Investment Entities. The Company does not have the ability to direct key decisions made by the directors of these entities nor is it the primary beneficiary of these entities as Colony NorthStar continues to be the investment manager of the Co-Investment Funds and the directors and officers of these entities continue to be employees of Colony NorthStar. The Company itself is managed by a subsidiary of Colony NorthStar and does not have any employees of its own. Therefore, upon closing of the Combination, the Company deconsolidated the CLNS Investment Entities that are joint ventures with Co-Investment Funds.

The deconsolidation of these CLNS Investment Entities did not result in any gain or loss to the Company. The following table presents the deconsolidation of the assets and liabilities of certain of the CLNS Investment Entities, and accounting for the Company’s interests in these CLNS Investment Entities as equity method investments as of the Closing Date (dollars in thousands):



	As of the Closing Date
Assets
Cash and cash equivalents	$	(11,408	)
Restricted cash	(14,704		)
Loans held for investment, net	(553,678		)
Investments in unconsolidated ventures	127,062
Receivables, net	(4,344		)
Other assets	(114		)
Total assets	$	(457,186	)
Liabilities
Mortgage and other notes payable, net	$	(128,709	)
Accrued and other liabilities	(640		)
Escrow deposits payable	(14,704		)
Total liabilities	(144,053		)

Stockholders’ equity	(313,133		)
Total liabilities and equity	$	(457,186	)

Voting Interest Entities

Unlike VIEs, voting interest entities have sufficient equity to finance their activities and equity investors exhibit the characteristics of a controlling financial interest through their voting rights. The Company consolidates such entities when it has the power to control these entities through ownership of a majority of the entities’ voting interests or through other arrangements.

At each reporting period, the Company reassesses whether changes in facts and circumstances cause a change in the status of an entity as a VIE or voting interest entity, and/or a change in the Company’s consolidation assessment. Changes in consolidation status are applied prospectively. An entity may be consolidated as a result of this reassessment, in which case, the assets, liabilities and noncontrolling interest in the entity are recorded at fair value upon initial consolidation. Any existing equity interest held by the Company in the entity prior to the Company obtaining control will be remeasured at fair value, which may result in a gain or loss recognized upon initial consolidation. However, if the consolidation represents an asset acquisition of a voting interest entity, the Company's existing interest in the acquired assets, if any, is not remeasured to fair value but continues to be carried at historical cost. The Company may also deconsolidate a subsidiary as a result of this reassessment, which may result in a gain or loss recognized upon deconsolidation depending on the carrying values of deconsolidated assets and liabilities compared to the fair value of any interests retained.

Noncontrolling Interests

Noncontrolling Interests in Investment Entities - This represents interests in consolidated investment entities held by third party joint venture partners and prior to the closing of the Combination, such interests held by private funds managed by Colony NorthStar. Allocation of net income or loss is generally based upon relative ownership interests held by equity owners in each investment entity, or based upon contractual arrangements that may provide for disproportionate allocation of economic returns among equity interests, including using a hypothetical liquidation at book value basis, where applicable and substantive.

Noncontrolling Interests in the Operating Partnership - This represents membership interests in the OP held by RED REIT. Noncontrolling interests in the OP are allocated a share of net income or loss in the OP based on their weighted average ownership interest in the OP during the period. Noncontrolling interests in the OP have the right to require the OP to redeem part or all of the membership units in the OP for cash based on the market value of an equivalent number of shares of class A common stock at the time of redemption, or at the Company's election as managing member of the OP, through the issuance of shares of class A common stock on a one-for-one basis. Refer to Note 3, “Business Combinations,” for further discussion of OP membership units. At the end of each reporting period, noncontrolling interests in the OP is adjusted to reflect their ownership percentage in the OP at the end of the period, through a reallocation between controlling and noncontrolling interests in the OP, as applicable.

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates and assumptions.

Comprehensive Income (Loss)

The Company reports consolidated comprehensive income (loss) in separate statements following the consolidated statements of operations. Comprehensive income (loss) is defined as the change in equity resulting from net income (loss) and other comprehensive income (“OCI”). The only component of OCI is unrealized gain (loss) on CRE debt securities available for sale for which the fair value option was not elected.

Fair Value Measurement

Fair value is based on an exit price, defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Where appropriate, the Company makes adjustments to estimated fair values to appropriately reflect counterparty credit risk as well as the Company’s own credit-worthiness.

The estimated fair value of financial assets and financial liabilities are categorized into a three-tier hierarchy, prioritized based on the level of transparency in inputs used in the valuation techniques, as follows:

Level 1-Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2-Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in non-active markets, or valuation techniques utilizing inputs that are derived principally from or corroborated by observable data directly or indirectly for substantially the full term of the financial instrument.

Level 3-At least one assumption or input is unobservable and it is significant to the fair value measurement, requiring significant management judgment or estimate.

Where the inputs used to measure the fair value of a financial instrument fall into different levels of the fair value hierarchy, the financial instrument is categorized within the hierarchy based on the lowest level of input that is significant to its fair value measurement.

Fair Value Option

The fair value option provides an option to elect fair value as an alternative measurement for selected financial instruments. Gains and losses on items for which the fair value option has been elected are reported in earnings. The fair value option may be elected only upon the occurrence of certain specified events, including when the Company enters into an eligible firm commitment, at initial recognition of the financial instrument, as well as upon a business combination or consolidation of a subsidiary. The election is irrevocable unless a new election event occurs.

The Company has elected the fair value option for PE Investments. The Company has also elected the fair value option to account for the eligible financial assets and liabilities of its consolidated Investing VIEs in order to mitigate potential accounting mismatches between the carrying value of the instruments and the related assets and liabilities to be consolidated. The Company has adopted guidance issued by the FASB allowing the Company to measure both the financial assets and liabilities of a qualifying CFE it consolidates using the fair value of either the CFE’s financial assets or financial liabilities, whichever is more observable.

Business Combinations

The Company evaluates each purchase transaction to determine whether the acquired assets meet the definition of a business. If substantially all of the fair value of gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, then the set of transferred assets and activities is not a business. If not, for an acquisition to be considered a business, it would have to include an input and a substantive process that together significantly contribute to the ability to create outputs (i.e., there is a continuation of revenue before and after the transaction). A substantive process is not ancillary or minor, cannot be replaced without significant cost, effort or delay or is otherwise considered unique or scarce. To qualify as a business without outputs, the acquired assets would require an organized workforce with the necessary skills, knowledge and experience that performs a substantive process.

Net cash paid to acquire a business or assets is classified as investing activities on the accompanying statements of cash flows.

The Company accounts for business combinations by applying the acquisition method. Transaction costs related to acquisition of a business are expensed as incurred and excluded from the fair value of consideration transferred. The identifiable assets acquired, liabilities assumed and noncontrolling interests in an acquired entity are recognized and measured at their estimated fair values. The excess of the fair value of consideration transferred over the fair values of identifiable assets acquired, liabilities assumed and noncontrolling interests in an acquired entity, net of fair value of any previously held interest in the acquired entity, is recorded as goodwill. Such valuations require management to make significant estimates and assumptions.

For acquisitions that are not deemed to be businesses, the assets acquired are recognized based on their cost to the Company as the acquirer and no gain or loss is recognized unless the fair value of non-cash assets given as consideration differs from the carrying amount of the assets acquired. The cost of assets acquired in a group is allocated to individual assets within the group based on their relative fair values and does not give rise to goodwill. Transaction costs related to acquisition of assets are included in the cost basis of the assets acquired.

Cash and Cash Equivalents

Short-term, highly liquid investments with original maturities of three months or less are considered to be cash equivalents. The Company did not have any cash equivalents at March 31, 2018 or December 31, 2017. The Company’s cash is held with major financial institutions and may at times exceed federally insured limits.

Restricted Cash

Restricted cash consists primarily of borrower escrow deposits, tenant escrow deposits and real estate capital expenditure reserves.

Loans Held for Investment

The Company originates and purchases loans held for investment. The accounting framework for loans held for investment depends on the Company’s strategy whether to hold or sell the loan, whether the loan was credit-impaired at time of acquisition, or if the lending arrangement is an acquisition, development and construction loan.

Loans Held for Investment (other than Purchased Credit-Impaired Loans)

Loans that the Company has the intent and ability to hold for the foreseeable future are classified as held for investment. Originated loans are recorded at amortized cost, or outstanding unpaid principal balance plus exit fees less net deferred loan fees. Net deferred loan fees include unamortized origination and other fees charged to the borrower less direct incremental loan origination costs incurred by the Company. Purchased loans are recorded at amortized cost, or unpaid principal balance plus purchase premium or less unamortized discount. Costs to purchase loans are expensed as incurred.

Interest Income-Interest income is recognized based upon contractual interest rate and unpaid principal balance of the loans. Net deferred loan fees on originated loans are deferred and amortized as adjustments to interest income over the expected life of the loans using the effective yield method. Premium or discount on purchased loans are amortized as adjustments to interest income over the expected life of the loans using the effective yield method. For revolving loans, net deferred loan fees, premium or discount are amortized to interest income using the straight-line method. When a loan is prepaid, prepayment fees and any excess of proceeds over the carrying amount of the loan are recognized as additional interest income.

Nonaccrual-Accrual of interest income is suspended on nonaccrual loans. Loans that are past due 90 days or more as to principal or interest, or where reasonable doubt exists as to timely collection, are generally considered nonperforming and placed on nonaccrual. Interest receivable is reversed against interest income when loans are placed on nonaccrual status. Interest collection on nonaccruing loans for which ultimate collectability of principal is uncertain is recognized using a cost recovery method by applying interest collected as a reduction to loan principal; otherwise, interest collected is recognized on a cash basis by crediting to income when received. Loans may be restored to accrual status when all principal and interest is current and full repayment of the remaining contractual principal and interest is reasonably assured.

Impairment and Allowance for Loan Losses-On a periodic basis, the Company analyzes the extent and effect of any credit migration from underwriting and the initial investment review associated with the performance of a loan and/or value of its underlying collateral, financial and operating capability of the borrower or sponsor, as well as amount and status of any senior loan, where applicable. Specifically, operating results of collateral properties and any cash reserves are analyzed and used to assess whether cash from operations are sufficient to cover debt service requirements currently and into the future, ability of the borrower to refinance the loan, liquidation value of collateral properties, financial wherewithal of any loan guarantors as well as the borrower’s competency in managing and operating the collateral properties. Such analysis is performed at least quarterly, or more often as needed when impairment indicators are present.

Loans are considered to be impaired when it is probable that the Company will not be able to collect all amounts due in accordance with contractual terms of the loans, including consideration of underlying collateral value. Allowance for loan losses represents the estimated probable credit losses inherent in loans held for investment at balance sheet date. Changes in allowance for loan losses are recorded in the provision for loan losses on the statement of operations. Allowance for loan losses generally exclude interest receivable as accrued interest receivable is reversed when a loan is placed on nonaccrual status. Allowance for loan losses is generally measured as the difference between the carrying value of the loan and either the present value of cash flows expected to be collected, discounted at the original effective interest rate of the loan or an observable market price for the loan. Subsequent changes in impairment are recorded as adjustments to the provision for loan losses. Loans are charged off against allowance for loan losses when all or a portion of the principal amount is determined to be uncollectible. A loan is considered to be collateral-dependent when repayment of the loan is expected to be provided solely by the underlying collateral. Impaired collateral-dependent loans are written down to the fair value of the collateral less disposal cost, first through a charge-off against allowance for loan losses, if any, then recorded as impairment loss.

Troubled Debt Restructuring (“TDR”)-A loan with contractual terms modified in a manner that grants concession to the borrower who is experiencing financial difficulty is classified as a TDR. Concessions could include term extensions, payment deferrals, interest rate reductions, principal forgiveness, forbearance, or other actions designed to maximize the Company’s collection on the loan. As a TDR is generally considered to be an impaired loan, it is measured for impairment based on the Company’s allowance for loan losses methodology.

Loans Held for Sale

Loans that the Company intends to sell or liquidate in the foreseeable future are classified as held for sale. Loans held for sale are carried at the lower of amortized cost or fair value less disposal cost, with valuation changes recognized as impairment loss. Loans held for sale are not subject to allowance for loan losses. Net deferred loan origination fees and loan purchase premiums or discounts are deferred and capitalized as part of the carrying value of the held for sale loan until the loan is sold, therefore included in the periodic valuation adjustments based on lower of cost or fair value less disposal cost.

Purchased Credit-Impaired (“PCI”) Loans

PCI loans are acquired loans with evidence of credit quality deterioration for which it is probable at acquisition that the Company will collect less than the contractually required payments. PCI loans are recorded at the initial investment in the loans and accreted to the estimated cash flows expected to be collected as measured at acquisition date. The excess of cash flows expected to be collected, measured as of acquisition date, over the estimated fair value represents the accretable yield and is recognized in interest income over the remaining life of the loan using the effective interest method. The difference between contractually required payments as of the acquisition date and the cash flows expected to be collected (“nonaccretable difference”) is not recognized as an adjustment of yield, loss accrual or valuation allowance.

The Company evaluates estimated future cash flows expected to be collected on a quarterly basis, starting with the first full quarter after acquisition, or earlier if conditions indicating impairment are present. If the cash flows expected to be collected cannot be reasonably estimated, either at acquisition or in subsequent evaluation, the Company may consider placing such PCI loans on nonaccrual, with interest income recognized using the cost recovery method or on a cash basis. Subsequent decreases in cash flows expected to be collected are evaluated to determine whether a provision for loan loss should be established. If decreases in expected cash flows result in a decrease in the estimated fair value of the loan below its amortized cost, the Company records a provision for loan losses calculated as the difference between the loan’s amortized cost and the revised cash flows, discounted at the loan’s effective yield. Subsequent significant increases in cash flows expected to be collected are first applied to reverse any previously recorded allowance for loan losses, with any remaining increases recognized prospectively through an adjustment to yield over its remaining life.

Factors that most significantly affect estimates of cash flows expected to be collected, and accordingly the accretable yield, include: (i) estimate of the remaining life of acquired loans which may change the amount of future interest income; (ii) changes to prepayment assumptions; (iii) changes to collateral value assumptions for loans expected to foreclose; and (iv) changes in interest rates on variable rate loans.

PCI loans may be aggregated into pools based upon common risk characteristics, such as loan performance, collateral type and/or geographic location of the collateral. A pool is accounted for as a single asset with a single composite yield and an aggregate expectation of estimated future cash flows. A PCI loan modified within a pool remains in the pool, with the effect of the modification incorporated into the expected future cash flows. A loan resolution within a loan pool, which may involve the sale of the loan or foreclosure on the underlying collateral, results in the removal of an allocated carrying amount, including an allocable portion of any existing allowance.

Acquisition, Development and Construction (“ADC”) Loan Arrangements

The Company provides loans to third party developers for the acquisition, development and construction of real estate. Under an ADC arrangement, the Company participates in the expected residual profits of the project through the sale, refinancing or other use of the property. The Company evaluates the characteristics of each ADC arrangement, including its risks and rewards, to determine whether they are more similar to those associated with a loan or an investment in real estate. ADC arrangements with characteristics implying loan classification are presented as loans held for investment and result in the recognition of interest income. ADC arrangements with characteristics implying real estate joint ventures are presented as investments in unconsolidated joint ventures and are accounted for using the equity method. The classification of each ADC arrangement as either loan receivable or real estate joint venture involves significant judgment and relies on various factors, including market conditions, amount and timing of expected residual profits, credit enhancements in the form of guaranties, estimated fair value of the collateral, and significance of borrower equity in the project, among others. The classification of ADC arrangements is performed at inception, and periodically reassessed when significant changes occur in the circumstances or conditions described above.

Operating Real Estate

Real Estate Acquisitions-Real estate acquired in acquisitions that are deemed to be business combinations is recorded at the fair values of the acquired components at the time of acquisition, allocated among land, buildings, improvements, equipment and lease-related tangible and identifiable intangible assets and liabilities, including foregone leasing costs, in-place lease values and above- or below-market lease values. Real estate acquired in acquisitions that are deemed to be asset acquisitions is recorded at the total value of consideration transferred, including transaction costs, allocated to the acquired components based upon relative fair value. The estimated fair value of acquired land is derived from recent comparable sales of land and listings within the same local region based on available market data. The estimated fair value of acquired buildings and building improvements is derived from comparable sales, discounted cash flow analysis using market-based assumptions, or replacement cost, as appropriate. The fair value of site and tenant improvements is estimated based upon current market replacement costs and other relevant market rate information.

Real Estate Held for Investment

Real estate held for investment are carried at cost less accumulated depreciation.

Costs Capitalized or Expensed-Expenditures for ordinary repairs and maintenance are expensed as incurred, while expenditures for significant renovations that improve or extend the useful life of the asset are capitalized and depreciated over their estimated useful lives.

Depreciation-Real estate held for investment, other than land, are depreciated on a straight-line basis over the estimated useful lives of the assets, as follows:



Real Estate Assets		Term
Building (fee interest)		7 to 53 years
Building leasehold interests		Lesser of remaining term of the lease or remaining life of the building
Building improvements		Lesser of the useful life or remaining life of the building
Land improvements		6 to 12 years
Tenant improvements		Lesser of the useful life or remaining term of the lease
Furniture, fixtures and equipment		7 to 8 years

Impairment-The Company evaluates its real estate held for investment for impairment periodically or whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. The Company evaluates cash flows and determines impairments on an individual property basis. In making this determination, the Company reviews, among other things, current and estimated future cash flows associated with each property, market information for each sub-market, including, where applicable, competition levels, foreclosure levels, leasing trends, occupancy trends, lease or room rates, and the market prices of similar properties recently sold or currently being offered for sale, and other quantitative and qualitative factors. If an impairment indicator exists, the Company evaluates whether the expected future undiscounted cash flows is less than the carrying amount of the asset, and if the Company determines that the carrying value is not recoverable, an impairment loss is recorded for the difference between the estimated fair value and the carrying amount of the asset.

Real Estate Held for Sale

Classification as Held for Sale-Real estate is classified as held for sale in the period when (i) management approves a plan to sell the asset, (ii) the asset is available for immediate sale in its present condition, subject only to usual and customary terms, (iii) a program is initiated to locate a buyer and actively market the asset for sale at a reasonable price, and (iv) completion of the sale is probable within one year. Real estate held for sale is stated at the lower of its carrying amount or estimated fair value less disposal cost, with any write-down to fair value less disposal cost recorded as an impairment loss. For any increase in fair value less disposal cost subsequent to classification as held for sale, the impairment loss may be reversed, but only up to the amount of cumulative loss previously recognized. Depreciation is not recorded on assets classified as held for sale.

If circumstances arise that were previously considered unlikely and, as a result, the Company decides not to sell the real estate asset previously classified as held for sale, the real estate asset is reclassified as held for investment. Upon reclassification, the real estate asset is measured at the lower of (i) its carrying amount prior to classification as held for sale, adjusted for depreciation expense that would have been recognized had the real estate been continuously classified as held for investment, and (ii) its estimated fair value at the time the Company decides not to sell.

Real Estate Sales-The Company evaluates if real estate sale transactions qualify for recognition under the full accrual method, considering whether, among other criteria, the buyer’s initial and continuing investments are adequate to demonstrate a commitment to pay, any receivable due to the Company is not subject to future subordination, the Company has transferred to the buyer the usual risks and rewards of ownership and the Company does not have a substantial continuing involvement with the sold real estate. At the time the sale is consummated, a gain or loss is recognized as the difference between the sale price less disposal cost and the carrying value of the real estate.

Foreclosed Properties

The Company receives foreclosed properties in full or partial settlement of loans held for investment by taking legal title or physical possession of the properties. Foreclosed properties are recognized, generally, at the time the real estate is received at foreclosure sale or upon execution of a deed in lieu of foreclosure. Foreclosed properties are initially measured at fair value. Deficiencies compared to the carrying value of the loan, after reversing any previously recognized loss provision on the loan, are recorded as impairment loss. The Company periodically evaluates foreclosed properties for subsequent decrease in fair value, which is recorded as additional impairment loss. Fair value of foreclosed properties is generally based on third party appraisals, broker price opinions, comparable sales or a combination thereof.

Real Estate Securities

The Company classifies its CRE securities investments as available for sale on the acquisition date, which are carried at fair value. Unrealized gains (losses) are recorded as a component of accumulated OCI in the consolidated statements of equity. However, the Company has elected the fair value option for certain of its available for sale securities, and as a result, any unrealized gains (losses) on such securities are recorded in unrealized gain (loss) on mortgage loans and obligations held in securitization trusts, net in the consolidated statements of operations. As of March 31, 2018, the Company held subordinate tranches of three securitization trusts, which represent the Company’s retained interest in the securitization trusts, which the Company consolidates under U.S. GAAP. Refer to Note 7, “Real Estate Securities, Available for Sale” for further discussion.

Impairment

CRE securities for which the fair value option is elected are not evaluated for other-than-temporary impairment (“OTTI”) as any change in fair value is recorded in the consolidated statements of operations. Realized losses on such securities are reclassified to realized gain (loss) on investments as losses occur.

CRE securities for which the fair value option is not elected are evaluated for OTTI quarterly. Impairment of a security is considered to be other-than-temporary when: (i) the holder has the intent to sell the impaired security; (ii) it is more likely than not the holder will be required to sell the security; or (iii) the holder does not expect to recover the entire amortized cost of the security. When a CRE security has been deemed to be other-than-temporarily impaired due to (i) or (ii), the security is written down to its fair value and an OTTI is recognized in the consolidated statements of operations. In the case of (iii), the security is written down to its fair value and the amount of OTTI is then bifurcated into: (a) the amount related to expected credit losses; and (b) the amount related to fair value adjustments in excess of expected credit losses. The portion of OTTI related to expected credit losses is recognized in the consolidated statements of operations. The remaining OTTI related to the valuation adjustment is recognized as a component of accumulated OCI in the consolidated statements of equity. CRE securities which are not high-credit quality are considered to have an OTTI if the security has an unrealized loss and there has been an adverse change in expected cash flow. The amount of OTTI is then bifurcated as discussed above. As of March 31, 2018, the Company did not have any OTTI recorded on its CRE securities.

Investments in Unconsolidated Ventures

A noncontrolling, unconsolidated ownership interest in an entity may be accounted for using the equity method, cost method or under the fair value option, if elected.

The Company accounts for investments under the equity method of accounting if they have the ability to exercise significant influence over the operating and financial policies of an entity, but do not have a controlling financial interest. The equity method investment is initially recorded at cost and adjusted each period for capital contributions, distributions and the Company’s share of the entity’s net income or loss as well as other comprehensive income or loss. The Company’s share of net income or loss may differ from the stated ownership percentage interest in an entity if the governing documents prescribe a substantive non-pro rata earnings allocation formula or a preferred return to certain investors. For certain equity method investments, the Company records its proportionate share of income on a one to three month lag. Distributions of operating profits from equity method investments are reported as operating activities, while distributions in excess of operating profits or those related to capital transactions, such as a financing transactions or sales, are reported as investing activities in the statement of cash flows.

Investments that do not qualify for equity method accounting are accounted for under the cost method. The Company elected the fair value option for certain cost method investments, specifically limited partnership interests in PE Investments. The Company records the change in fair value for their share of the projected future cash flows of such investments in equity in earnings (losses) of unconsolidated ventures. Any change in fair value attributed to market related assumptions is recorded in other gain (loss), net, on the statement of operations.

Other than investments in PE Investments and investments in senior and mezzanine loans held in joint ventures, all of the Company’s investments in unconsolidated ventures at March 31, 2018 were made up of ADC arrangements accounted for as equity method investments. At December 31, 2017, the Company’s investments in unconsolidated ventures consisted of investments in PE Investments and ADC arrangements accounted for as equity method investments.

Impairment-If indicators of impairment exist, the Company performs an evaluation of their equity method investments to assess whether the fair value of their investment is less than its carrying value. To the extent the decrease in value is considered to be other-than-temporary and an impairment has occurred, the investment is written down to its estimated fair value, recorded in earnings from investment in unconsolidated ventures.

Identifiable Intangibles

In a business combination or asset acquisition, the Company may recognize identifiable intangibles that meet either or both the contractual-legal criterion or the separability criterion. Indefinite-lived intangibles are not subject to amortization until such time that its useful life is determined to no longer be indefinite, at which point, it will be assessed for impairment and its adjusted carrying amount amortized over its remaining useful life. Finite-lived intangibles are amortized over their useful life in a manner that reflects the pattern in which the intangible is being consumed if readily determinable, such as based upon expected cash flows; otherwise they are amortized on a straight line basis. The useful life of all identified intangibles will be periodically reassessed and if useful life changes, the carrying amount of the intangible will be amortized prospectively over the revised useful life. Finite-lived intangibles are periodically reviewed for impairment and an impairment loss is recognized if the carrying amount of the intangible is not recoverable and exceeds its fair value. An impairment establishes a new basis for the identifiable intangibles and any impairment loss recognized is not subject to subsequent reversal.

Identifiable intangibles recognized in acquisitions of operating real estate properties generally include in-place leases, above- or below-market leases and deferred leasing costs. In-place leases generate value over and above the tangible real estate because a property that is occupied with leased space is typically worth more than a vacant building without an operating lease contract in place. The estimated fair value of acquired in-place leases is derived based on management’s assessment of costs avoided from having tenants in place, including lost rental income, rent concessions and tenant allowances or reimbursements, that hypothetically would be incurred to lease a vacant building to its actual existing occupancy level on the valuation date. The net amount recorded for acquired in-place leases is included in intangible assets and amortized on a straight-line basis as an increase to depreciation and amortization expense over the remaining term of the applicable leases. If an in-place lease is terminated, the unamortized portion is charged to depreciation and amortization expense.

The estimated fair value of the above- or below-market component of acquired leases represents the present value of the difference between contractual rents of acquired leases and market rents at the time of the acquisition for the remaining lease term, discounted for tenant credit risks. Above- or below-market operating lease values are amortized on a straight-line basis as a decrease or increase to rental income, respectively, over the applicable lease terms. This includes fixed rate renewal options in acquired leases that are below-market, which is amortized to decrease rental income over the renewal period. Above- or below-market ground lease obligations are amortized on a straight-line basis as a decrease or increase to rent expense, respectively, over the applicable lease terms. If the above- or below-market operating lease values or above- or below-market ground lease obligations are terminated, the unamortized portion of the lease intangibles are recorded in rental income or rent expense, respectively.

Deferred leasing costs represent management’s estimation of the avoided leasing commissions and legal fees associated with an existing in-place lease. The net amount is included in intangible assets and amortized on a straight-line basis as an increase to depreciation and amortization expense over the remaining term of the applicable lease.

Transfers of Financial Assets

Sale accounting for transfers of financial assets requires the transfer of an entire financial asset, a group of financial assets in its entirety or if a component of the financial asset is transferred, that component meets the definition of a participating interest by having characteristics that mirror the original financial asset.

Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. If the Company has any continuing involvement, rights or obligations with the transferred financial asset (outside of standard representations and warranties), sale accounting would require that the transfer meets the following sale conditions: (1) the transferred asset has been legally isolated; (2) the transferee has the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred asset; and (3) the Company does not maintain effective control over the transferred asset through an agreement that provides for (a) both an entitlement and an obligation by the Company to repurchase or redeem the asset before its maturity, or (b) the unilateral ability by the Company to reclaim the asset and a more than trivial benefit attributable to that ability, or (c) the transferee requiring the Company to repurchase the asset at a price so favorable to the transferee that it is probable the repurchase will occur.

If sale accounting is met, the transferred financial asset is removed from the balance sheet and a net gain or loss is recognized upon sale, taking into account any retained interests. Transfers of financial assets that do not meet the criteria for sale are accounted for as financing transactions, or secured borrowing.

Financing Costs

Financing costs primarily include debt discounts and premiums as well as deferred financing costs. Deferred financing costs represent commitment fees, legal and other third-party costs associated with obtaining financing. Costs related to revolving credit facilities are recorded in other assets and are amortized to interest expense using the straight-line basis over the term of the facility. Costs related to other borrowings are recorded net against the carrying value of such borrowings and are amortized to interest expense using the effective interest method. Unamortized deferred financing costs are expensed to realized gain (loss) when the associated facility is repaid before maturity. Costs incurred in seeking financing transactions, which do not close, are expensed in the period in which it is determined that the financing will not occur.

Revenue Recognition

Property Operating Income

Property operating income includes the following:

Rental Income-Rental income is recognized on a straight-line basis over the noncancelable term of the related lease which includes the effects of minimum rent increases and rent abatements under the lease. Rents received in advance are deferred.

When it is determined that the Company is the owner of tenant improvements, the cost to construct the tenant improvements, including costs paid for or reimbursed by the tenants, is capitalized. For tenant improvements owned by the Company, the amount funded by or reimbursed by the tenants are recorded as deferred revenue, which is amortized on a straight-line basis as additional rental income over the term of the related lease. Rental income recognition commences when the leased space is substantially ready for its intended use and the tenant takes possession of the leased space.

When it is determined that the tenant is the owner of tenant improvements, the Company’s contribution towards those improvements is recorded as a lease incentive, included in deferred leasing costs and intangible assets on the balance sheet, and amortized as a reduction to rental income on a straight-line basis over the term of the lease. Rental income recognition commences when the tenant takes possession of the lease space.

Tenant Reimbursements-In net lease arrangements, the tenant is generally responsible for operating expenses relating to the property, including real estate taxes, property insurance, maintenance, repairs and improvements. Costs reimbursable from tenants and other recoverable costs are recognized as revenue in the period the recoverable costs are incurred. When the Company is the primary obligor with respect to purchasing goods and services for property operations and has discretion in selecting the supplier and retains credit risk, tenant reimbursement revenue and property operating expenses are presented on a gross basis in the statements of operations. For certain triple net leases where the lessee self-manages the property, hires its own service providers and retains credit risk for routine maintenance contracts, no reimbursement revenue and expense are recognized.

Hotel Operating Income-Hotel operating income includes room revenue, food and beverage sales and other ancillary services. Revenue is recognized upon occupancy of rooms, consummation of sales and provision of services.

Real Estate Securities

Interest income is recognized using the effective interest method with any premium or discount amortized or accreted through earnings based on expected cash flow through the expected maturity date of the security. Changes to expected cash flow may result in a change to the yield which is then applied retrospectively for high-credit quality securities that cannot be prepaid or otherwise settled in such a way that the holder would not recover substantially all of the investment or prospectively for all other securities to recognize interest income.

Foreign Currency

Assets and liabilities denominated in a foreign currency for which the functional currency is a foreign currency are translated using the exchange rate in effect at balance sheet date and the corresponding results of operations for such entities are translated using the average exchange rate in effect during the period. The resulting foreign currency translation adjustments are recorded as a component of accumulated other comprehensive income or loss in stockholders’ equity.

Assets and liabilities denominated in a foreign currency for which the functional currency is the U.S. dollar are remeasured using the exchange rate in effect at balance sheet date and the corresponding results of operations for such entities are remeasured using the average exchange rate in effect during the period. The resulting foreign currency remeasurement adjustments are recorded in other gain (loss) on investments on the statements of operations.

Disclosures of non-US dollar amounts to be recorded in the future are translated using exchange rates in effect at the balance sheet date.

Equity-Based Compensation

Equity-classified stock awards granted to executive officers and directors that have a service condition only are remeasured at fair value at the end of each reporting period until the award is fully vested. Fair value is determined based on the closing price of the Company’s Class A common stock at the date of grant or date of remeasurement. The Company recognizes equity-based compensation expense on a straight-line basis over the requisite service period of the awards, with the amount of compensation expense recognized at the end of a reporting period at least equal to the fair value of the portion of the award that has vested through that date. The compensation expense is adjusted for actual forfeitures upon occurrence. Equity-based compensation is classified within administrative expense in the consolidated statement of operations.

Earnings Per Share

The Company presents both basic and diluted earnings per share, or EPS using the two-class method. Basic EPS is calculated by dividing earnings allocated to common shareholders, as adjusted for unallocated earnings attributable to certain participating securities, if any, by the weighted-average number of common shares outstanding during the period. Diluted EPS is based on the weighted-average number of common shares and the effect of potentially dilutive common share equivalents outstanding during the period. The two-class method is an allocation formula that determines earnings per share for each share of common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings (distributed and undistributed) are allocated to common shares and participating securities based on their respective rights to receive dividends. The Company has certain share-based payment awards that contain nonforfeitable rights to dividends, which are considered participating securities for the purposes of computing EPS pursuant to the two-class method.

Income Taxes

The Company intends to elect to be taxed as a REIT and to comply with the related provisions of the Internal Revenue Code beginning in its taxable year ending December 31, 2018. Accordingly, the Company will generally not be subject to U.S. federal income tax to the extent of its distributions to stockholders as long as certain asset, income, distribution and share ownership tests are met. The Company believes that all of the criteria to maintain the Company’s REIT qualification have been met for the applicable periods, but there can be no assurance that these criteria will continue to be met in subsequent periods. If the Company were to fail to meet these requirements, it would be subject to U.S. federal income tax and potential interest and penalties, which could have a material adverse impact on its results of operations and amounts available for distributions to its stockholders. The Company’s accounting policy with respect to interest and penalties is to classify these amounts as a component of income tax expense, where applicable.

The Company may also be subject to certain state, local and franchise taxes. Under certain circumstances, U.S. federal income and excise taxes may be due on its undistributed taxable income.

The Company made joint elections to treat certain subsidiaries as taxable REIT subsidiaries (“TRS”) which may be subject to U.S. federal, state and local income taxes. In general, a TRS of the Company may perform non-customary services for tenants, hold assets that the REIT cannot hold directly and may engage in most real estate or non-real estate-related business.

Certain subsidiaries of the Company are subject to taxation by U.S. federal, state and local authorities for the periods presented. Income taxes are accounted for by the asset/liability approach in accordance with U.S. GAAP. Deferred taxes, if any, represent the expected future tax consequences when the reported amounts of assets and liabilities are recovered or paid. Such amounts arise from differences between the financial reporting and tax bases of assets and liabilities and are adjusted for changes in tax laws and tax rates in the period which such changes are enacted. A provision for income tax represents the total of income taxes paid or payable for the current period, plus the change in deferred taxes. Current and deferred taxes are recorded on the portion of earnings (losses) recognized by the Company with respect to its interest in TRSs. Deferred income tax assets and liabilities are calculated based on temporary differences between the Company’s U.S. GAAP consolidated financial statements and the U.S. federal, state and local tax basis of assets and liabilities as of the consolidated balance sheet date. The Company evaluates the realizability of its deferred tax assets (e.g., net operating loss and capital loss carryforwards) and recognizes a valuation allowance if, based on the available evidence, it is more likely than not that some portion or all of its deferred tax assets will not be realized. When evaluating the realizability of its deferred tax assets, the Company considers estimates of expected future taxable income, existing and projected book/tax differences, tax planning strategies available and the general and industry specific economic outlook. This realizability analysis is inherently subjective, as it requires the Company to forecast its business and general economic environment in future periods. Changes in estimate of deferred tax asset realizability, if any, are included in income tax benefit (expense) in the consolidated statements of operations.

On December 22, 2017, the Tax Cuts and Jobs Act was enacted, which provides for a reduction in the U.S. federal corporate income tax rate from 35% to 21% effective January 1, 2018. At December 31, 2017, the Company recognized a provisional amount of approximately $2.0 million of income tax expense relating to the remeasurement of its deferred tax balances based on the rate at which they are expected to reverse in the future, which is generally 21%. The Company is still analyzing certain aspects of the Tax Cuts and Jobs Act and refining their calculations, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts.

For the three months ended March 31, 2018 and 2017, the Company recorded income tax benefits of $0.5 million and $0.2 million, respectively.

Recent Accounting Pronouncements

Revenue Recognition-In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers, which amends existing revenue recognition standards by establishing principles for a single comprehensive model for revenue measurement and recognition, along with enhanced disclosure requirements. Key provisions include, but are not limited to, determining which goods or services are capable of being distinct in a contract to be accounted for separately as a performance obligation and recognizing variable consideration only to the extent that it is probable a significant revenue reversal would not occur. The new revenue standard may be applied retrospectively to each prior period presented (full retrospective) or retrospectively to contracts not completed as of date of initial application with the cumulative effect recognized in retained earnings (modified retrospective). ASU No. 2014-09 was originally effective for fiscal years and interim periods beginning after December 15, 2016 for public companies that are not emerging growth companies (“EGCs”) and December 15, 2017 for private companies and public companies that are EGCs. In July 2015, the FASB deferred the effective date of the new standard by one year. Early adoption is permitted but not before the original effective date. The FASB has subsequently issued several amendments to the standard, including clarifying the guidance on assessing principal versus agent based on the notion of control, which affects recognition of revenue on a gross or net basis. These amendments have the same effective date and transition requirements as the new standard.

The Company will adopt the standard using the modified retrospective approach on January 1, 2019. The standard excludes from its scope the areas of accounting that most significantly affect revenue recognition for the core activities of the Company, including accounting for financial instruments and leases. Evaluation of the impact of this new guidance is ongoing.

Financial Instruments-In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which affects accounting for investments in equity securities, financial liabilities under the fair value option, as well as presentation and disclosures, but does not affect accounting for investments in debt securities and loans. Investments in equity securities, other than equity method investments, will be measured at fair value through earnings, except for equity securities without readily determinable fair values which may be measured at cost less impairment and adjusted for observable price changes under application of the measurement alternative, unless these equity securities qualify for the net asset value (“NAV”) practical expedient. This provision eliminates cost method accounting and recognition of unrealized holding gains or losses on equity investments in other comprehensive income. For financial liabilities under the fair value option, changes in fair value resulting from the Company’s own instrument-specific credit risk will be recorded separately in other comprehensive income. Fair value disclosures of financial instruments measured at amortized cost will be based on exit price and corresponding disclosures of valuation methodology and significant inputs will no longer be required. In February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments, Recognition and Measurement of Financial Assets and Financial Liabilities, which provided several clarifications and amendments to the standard. These include specifying that for equity instruments without readily determinable fair values for which the measurement alternative is applied: (i) adjustments made when an observable transaction occurs for a similar security are intended to reflect the fair value as of the observable transaction date, not as of current reporting date; (ii) the measurement alternative may be discontinued upon an irrevocable election to change to a fair value measurement approach under fair value guidance, which would apply to all identical and similar investments of the same issuer; and (iii) the prospective transition approach for equity securities without readily determinable fair values is applicable only when the measurement alternative is applied. ASU No. 2016-01 is effective for fiscal years and interim periods beginning after December 15, 2017 for public companies that are not EGCs and December 15, 2018 for private companies and public companies that are EGCs. Early adoption is limited to specific provisions. ASU 2016-01 is to be applied retrospectively with cumulative effect as of the beginning of the first reporting period adopted recognized in retained earnings, except for provisions related to equity investments without readily determinable fair values for which the measurement alternative is applied and exit price fair value disclosures for financial instruments measured at amortized cost, which are to be applied prospectively.

As of March 31, 2018, all of the Company’s investments in unconsolidated ventures are equity method investments and the Company does not have any cost method investments nor has the Company elected fair value option on its financial liabilities which fall under the scope of this guidance.

The Company will adopt the new guidance on January 1, 2019. Evaluation of the impact of this new guidance is ongoing, but at this time the Company does not expect the adoption of this standard to have a material effect on its financial condition or results of operations.

Leases- In February 2016, the FASB issued ASU No. 2016-02, Leases, which amends existing lease accounting standards, primarily requiring lessees to recognize most leases on balance sheet, as well as making targeted changes to lessor accounting. As lessee, a right-of-use asset and corresponding liability for future obligations under a leasing arrangement would be recognized on balance sheet. As lessor, gross leases will be subject to allocation between lease and non-lease service components, with the latter accounted for under the new revenue recognition standard. As the new lease standard requires congruous accounting treatment between lessor and lessee in a sale-leaseback transaction, if the seller/lessee does not achieve sale accounting, it would be considered a financing transaction to the buyer/lessor. Additionally, under the new lease standard, only incremental initial direct costs incurred in the execution of a lease can be capitalized by the lessor and lessee.

ASU No. 2016-02 is effective for fiscal years and interim periods beginning after December 15, 2017 for public companies that are not EGCs and December 15, 2018 for private companies and public companies that are EGCs. Early adoption is permitted. The new leases standard requires adoption using a modified retrospective approach for all leases existing at, or entered into after, the date of initial application. Full retrospective application is prohibited. The FASB has subsequently issued and proposed several amendments to the standard, including approving an amendment to provide optional transitional relief to apply the effective date of the new lease standard as the date of initial application in transition instead of the earliest comparative period presented, as well as to provide certain practical expedients, which include not segregating non-lease components from the related lease components but to account for those components as a single lease component by class of underlying assets.

The Company intends to adopt the package of practical expedients under the guidance, which provides exemptions from having to reassess whether any expired or expiring contracts contain leases, revisit lease classification for any expired or expiring leases and reassess initial direct costs for any existing leases.

When the approved amendment is issued by the FASB, the Company expects to adopt the transition option, in which case, the cumulative effect adjustment to the opening balance of retained earnings will be recognized as of the effective date of adoption, including new disclosures, rather than as of the earliest period presented, and are not required for prior comparative periods. In addition, the Company expects to make an accounting policy election to treat lease and related non-lease components in a contract as a single performance obligation to the extent that the timing and pattern of revenue recognition are the same for the lease and non-lease components and the combined single lease component is classified as an operating lease.

Evaluation of the impact of this new guidance to the Company is ongoing.

Credit Losses- In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses, which amends the credit impairment model for financial instruments. The existing incurred loss model will be replaced with a lifetime current expected credit loss (“CECL”) model for financial instruments carried at amortized cost and off-balance sheet credit exposures, such as loans, loan commitments, held-to-maturity (“HTM”) debt securities, financial guarantees, net investment in leases, reinsurance and trade receivables, which will generally result in earlier recognition of allowance for losses. For AFS debt securities, unrealized credit losses will be recognized as allowances rather than reductions in amortized cost basis and elimination of the OTTI concept will result in more frequent estimation of credit losses. The accounting model for purchased credit impaired loans and debt securities will be simplified, including elimination of some of the asymmetrical treatment between credit losses and credit recoveries, to be consistent with the CECL model for originated and purchased non-credit impaired assets. The existing model for beneficial interests that are not of high credit quality will be amended to conform to the new impairment models for HTM and AFS debt securities. Expanded disclosures on credit risk include credit quality indicators by vintage for financing receivables and net investment in leases. Transition will generally be on a modified retrospective basis, with prospective application for other-than-temporarily impaired debt securities and purchased credit impaired assets. ASU No. 2016-13 is effective for fiscal years and interim periods beginning after December 15, 2019 for public companies that are not EGCs and December 15, 2020 for private companies and public companies that are EGCs. Early adoption is permitted for annual and interim periods beginning after December 15, 2018. The Company expects that recognition of credit losses will generally be accelerated under the CECL model. Evaluation of the impact of this new guidance is ongoing.

Cash Flow Classifications- In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments, which is intended to reduce diversity in practice in certain classifications on the statement of cash flows. This guidance addresses eight types of cash flows, which includes clarifying how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flows, as well as requiring an accounting policy election for classification of distributions received from equity method investees using either the cumulative earnings or nature of distributions approach, among others. Transition will generally be on a retrospective basis. ASU No. 2016-15 is effective for fiscal years and interim periods beginning after December 15, 2017 for public companies that are not EGCs and December 15, 2018 for private companies and public companies that are EGCs. Early adoption is permitted, provided that all amendments within the guidance are adopted in the same period. The Company will adopt the new guidance on January 1, 2019. Upon adoption, the Company anticipates making an accounting policy election for classification of distributions from its equity method investees using the cumulative earnings approach.

Restricted Cash- In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows: Restricted Cash, which requires that cash and cash equivalent balances in the statement of cash flows include restricted cash and restricted cash equivalent amounts, and therefore, changes in restricted cash and restricted cash equivalents be presented in the statement of cash flows. This will eliminate the presentation of transfers between cash and cash equivalents with restricted cash and restricted cash equivalents in the statement of cash flows. When cash, cash equivalents, restricted cash and restricted cash equivalents are presented in more than one line item on the balance sheet, this ASU requires disclosure of a reconciliation between the totals in the statement of cash flows and the related captions in the balance sheet. The new guidance also requires disclosure of the nature of restricted cash and restricted cash equivalents, similar to existing requirements under Regulation S-X; however, it does not define restricted cash and restricted cash equivalents. ASU No. 2016-18 is effective for fiscal years and interim periods beginning after December 15, 2017 for public companies that are not EGCs and December 15, 2018 for private companies and public companies that are EGCs, to be applied retrospectively, with early adoption permitted. If early adopted in an interim period, adjustments are to be reflected as of the beginning of the fiscal year of adoption. As of March 31, 2018, the Company has $117.4 million of restricted cash that will be subject to changes in presentation on the statement of cash flows. The Company will adopt the new guidance on January 1, 2019.

Derecognition and Partial Sales of Nonfinancial Assets- In February 2017, the FASB issued ASU 2017-05, Clarifying the Scope of Asset Derecognition and Accounting for Partial Sales of Nonfinancial Assets, which clarifies the scope and application of ASC 610-20, Other Income-Gains and Losses from Derecognition of Nonfinancial Assets, and defines in substance nonfinancial assets. ASC 610-20 applies to derecognition of all nonfinancial assets which are not contracts with customers or revenue transactions under ASC 606, Revenue from Contracts with Customers. Derecognition of a business is governed by ASC 810, Consolidation, while derecognition of financial assets, including equity method investments, even if the investee holds predominantly nonfinancial assets, is governed by ASC 860, Transfers and Servicing. The ASU also aligns the accounting for partial sales of nonfinancial assets to be more consistent with accounting for sale of a business. Specifically, in a partial sale to a noncustomer, when a noncontrolling interest is received or retained, the latter is considered a noncash consideration and measured at fair value in accordance with ASC 606, which would result in full gain or loss recognized upon sale. This ASU removes guidance on partial exchanges of nonfinancial assets in ASC 845, Nonmonetary Transactions, and eliminates the real estate sales guidance in ASC 360-20, Property, Plant and Equipment-Real Estate Sales. ASU 2017-05 has the same effective date as the new revenue guidance, which is January 1, 2018 for public companies that are not EGCs and January 1, 2019 for private companies and public companies that are EGCs, with early adoption permitted beginning January 1, 2017. Both ASC 606 and ASC 610-20 must be adopted concurrently. While the transition method is similar to the new revenue guidance, either full retrospective or modified retrospective, the transition approach applied need not be aligned between both standards.

The Company will adopt the new guidance on January 1, 2019 using the modified retrospective approach, consistent with the adoption of the new revenue standard. Under the new standard, if a partial interest in real estate is sold to noncustomers or contributed to unconsolidated ventures, and a noncontrolling interest in the asset is retained, such transactions could result in a larger gain on sale. The adoption of this standard could have a material impact to the results of operations in a period that a significant partial interest in real estate is sold. There were no such sales in the three months ended March 31, 2018.

Business Combinations

3 Months Ended

Mar. 31, 2018

Business Combinations [Abstract]

Business Combinations

The Combination

On the Closing Date, the Combination of the CLNS Contributed Portfolio, NorthStar I and NorthStar II was completed, creating CLNC.

In consideration for the contribution of the CLNS Contributed Portfolio, CLNS OP received approximately 44.4 million shares of the Company’s Class B-3 common stock (the “CLNC B-3 Common Stock”) and a subsidiary of CLNS OP received approximately 3.1 million common membership units in the OP (“CLNC OP Units”). The CLNC B-3 Common Stock will automatically convert to Class A common stock of the Company on a one-for-one basis upon the close of trading on February 1, 2019. The CLNC OP Units are redeemable for cash, or at the Company’s election, the Company’s Class A common stock on a one-for-one basis, in the sole discretion of the Company. Subject to certain limited exceptions, CLNS OP has agreed that it and its affiliates will not make any transfers of the CLNC OP Units to non-affiliates of CLNS OP until the one year anniversary of the closing of the Combination, unless such transfer is approved by a majority of the Company’s board of directors, including a majority of the independent directors. In connection with the merger of NorthStar I and NorthStar II into the Company, their respective stockholders received shares of the Company’s Class A common stock based on pre-determined exchange ratios. Following the foregoing transaction, the Company contributed the CLNS Contributed Portfolio and the operating partnerships of NorthStar I and NorthStar II to the OP in exchange for ownership interests in the OP. Upon the closing of the Combination, CLNS OP and its affiliates, NorthStar I stockholders and NorthStar II stockholders each owned approximately 37%, 32% and 31%, respectively, of the Company on a fully diluted basis.

Prior to the closing of the Combination, a special dividend was declared by NorthStar I, which generated the lesser amount of cash leakage, in order to true up the agreed contribution values of NorthStar I and NorthStar II in relation to each other. In addition, following the CLNS Contributions, but prior to the effective time of the Combination, there was a cash settlement between the Company and Colony NorthStar for the difference between (i) the sum of (a) the loss in value of NorthStar I and NorthStar II as a result of the distributions made by NorthStar I and NorthStar II in excess of FFO (as such term is defined in the Combination Agreement) from July 1, 2017 through the day immediately preceding the Closing Date (excluding the dividend payment made by each of NorthStar I and NorthStar II on July 1, 2017), (b) FFO for the CLNS Investment Entities from July 1, 2017 through the day immediately preceding the closing date, (c) cash contributions or contributions of certain intercompany receivables made to the CLNS Investment Entities from July 1, 2017 through the day immediately preceding the Closing Date, and (d) the expected present value of certain unreimbursed operating expenses of NorthStar I and NorthStar II paid on each company’s behalf by their respective advisors, and (ii) cash distributions made by the CLNS Investment Entities from July 1, 2017 through the day immediately preceding the Closing Date, excluding that certain distribution made by the CLNS Investment Entities in July 2017 relating to the partial repayment of a certain investment (collectively, “CLNS true-up adjustment”). The settlement of the CLNS true-up adjustment resulted in a payment of approximately $55 million from Colony NorthStar to the Company.

The Combination is accounted under the acquisition method for business combinations with the CLNS Investment Entities as the accounting acquirer for purposes of the financial information set forth herein. Refer to Note 2, “Summary of Significant Accounting Policies” for further discussion on the accounting treatment of the Combination.

Combination Consideration

Each share of NorthStar I and NorthStar II common stock issued and outstanding immediately prior to the effective time of the Combination was converted into the right to receive 0.3532 shares (the “NorthStar I Exchange Ratio”) and 0.3511 shares (the “NorthStar II Exchange Ratio”), respectively of the Company’s Class A common stock, plus cash in lieu of fractional shares. Approximately 21,000 shares of NorthStar I restricted common stock and 25,000 shares of NorthStar II restricted common stock automatically vested in connection with the Combination and the holders thereof were entitled to receive the same equity exchange as the other holders of NorthStar I and NorthStar II common stock, respectively.

The Company acquired all of the common stock of NorthStar I and NorthStar II through the exchange of all such outstanding shares into shares of Class A common stock based on the pre-determined NorthStar I Exchange Ratio and NorthStar II Exchange Ratio, respectively. As the Combination was a stock-for-stock exchange (except for cash consideration for fractional shares), fair value of the consideration to be transferred was dependent upon the fair value of the Company at the Closing Date of the Combination.

Fair value of the merger consideration was determined as follows (dollars in thousands, except exchange ratio and price per share):



	NorthStar I		NorthStar II		Total
Outstanding shares of common stock at January 31, 2018 ⁽¹⁾	119,333		114,943
Exchange ratio ⁽²⁾	0.3532		0.3511
Shares of Class A common stock issued in the mergers ⁽³⁾	42,149		40,356		82,505
Fair value consideration per share ⁽⁴⁾	$	24.50	$	24.50	$	24.50
Fair value of NorthStar I and NorthStar II consideration	$	1,032,651	$	988,722	$	2,021,373

_________________________________________


(1)	Includes 21,000 and 25,000 shares of common stock of NorthStar I and NorthStar II equity awards, respectively, that vested in connection with the consummation of the Combination.


(2)	Represents the pre-determined exchange ratio of 0.3532 NorthStar I shares and 0.3511 NorthStar II shares per one share of the Company’s Class A common stock.


(3)	Includes the issuance of fractional shares, aggregating to approximately 21,000 shares, for which holders received cash in lieu of the fractional shares.


(4)	Represents the estimated per share fair value of the Company at the Closing Date of the Combination.

The following table presents a preliminary allocation of the Combination consideration to assets acquired, liabilities assumed and noncontrolling interests of NorthStar I and NorthStar II based on their respective estimated fair values as of the Closing Date.

The estimated fair values and allocation of the Combination consideration presented below are preliminary and based on information available as of the Closing Date as the Company continues to evaluate the underlying inputs and assumptions. Accordingly, these preliminary estimates may be subject to adjustments during the measurement period, not to exceed one year, based upon new information obtained about facts and circumstances that existed as of the Closing Date. Preliminary fair values assigned to the assets acquired, liabilities assumed and noncontrolling interests of NorthStar I and NorthStar II as of the Closing Date were as follows (dollars in thousands):



	January 31, 2018
	NorthStar I		NorthStar II		Total
Merger consideration	$	1,032,651	$	988,722	$	2,021,373
Allocation of merger consideration:
Assets acquired
Cash and cash equivalents	$	130,197	$	51,360	$	181,557
Restricted cash	30,564		61,313		91,877
Loans held for investment	521,462		728,271		1,249,733
Real estate securities, available for sale, at fair value	100,731		64,793		165,524
Real estate, net	790,996		492,317		1,283,313
Investments in unconsolidated ventures	67,899		375,694		443,593
Receivables, net	12,363		11,479		23,842
Deferred leasing costs and intangible assets, net	74,243		37,090		111,333
Other assets	16,407		21,668		38,075
Mortgage loans held in securitization trusts, at fair value	1,894,404		1,432,795		3,327,199
Total assets acquired	3,639,266		3,276,780		6,916,046
Liabilities assumed
Securitization bonds payable, net	—		80,825		80,825
Mortgage and other notes payable, net	399,131		382,485		781,616
Credit facilities	293,340		355,529		648,869
Due to related party	4,533		1,842		6,375
Accrued and other liabilities	21,640		18,219		39,859
Intangible liabilities, net	17,931		1,808		19,739
Escrow deposits payable	12,994		36,362		49,356
Mortgage obligations issued by securitization trusts, at fair value	1,784,223		1,401,491		3,185,714
Total liabilities assumed	2,533,792		2,278,561		4,812,353
Noncontrolling interests	72,823		9,497		82,320
Fair value of net assets acquired	$	1,032,651	$	988,722	$	2,021,373

Fair value of other assets acquired, liabilities assumed and noncontrolling interests were estimated as follows:

Real Estate and Related Intangibles—Fair value is based on the income approach which includes a direct capitalization method with overall capitalization rates ranging between 6.5% and 8.3%. Real estate fair value was allocated to tangible assets such as land, building and leaseholds, tenant and land improvements as well as identified intangible assets and liabilities such as above- and below-market leases, and in-place lease value. Useful lives of the intangibles acquired range from 1 year to 10 years.

Loans held for investment—Fair value is determined by comparing the current yield to the estimated yield for newly originated loans with similar credit risk or the market yield at which a third party might expect to purchase such investment; or based on discounted cash flow projections of principal and interest expected to be collected, which include consideration of borrower or sponsor credit, as well as operating results of the underlying collateral. For certain loans held for investment, NorthStar II has a contractual right to equity-like participation or other ownership interests in the underlying collateral which was considered in calculating the fair value of the loans held for investment.

Investments in Unconsolidated Ventures—Fair value is based on timing and amount of expected future cash flows for income as well as realization events of the underlying assets of the investees. Investments in unconsolidated ventures includes a preferred equity investment accounted for as an ADC arrangement, as well as an investment in a joint venture which holds a mezzanine loan. The fair value for both investments was based on the outstanding principal value plus the undiscounted value of any applicable contractual exit fees associated with the investments. The ADC arrangement has an equity-like participation which was considered in its fair value. The capitalization rate used was 6.8%.

Securities—Fair value is based on quotations from brokers or financial institutions that act as underwriters of the debt securities, third-party pricing service or discounted cash flows depending on the type of debt securities.

Debt—The fair value of debt was determined by either comparing the contractual interest rate to the interest rate for newly originated debt with similar credit risk or the market rate at which a third party might expect to assume such debt or based on discounted cash flow (“DCF”) projections of principal and interest expected to be collected, which include consideration of borrower or sponsor credit, as well as operating results of the underlying collateral. All of the debt was priced consistent with current interest rates attainable for similarly situated investments, and therefore was attributed a value equal to each debt’s outstanding principal amount less any applicable premium or discount on the secured debt.

Noncontrolling Interests—NorthStar I’s noncontrolling interests are attributable to the minority ownership interests of its operating partners in its CRE properties. The estimated value of NorthStar I’s noncontrolling interests represents the minority owner’s pro rata share of the estimated net book value of the CRE properties, as determined in accordance with the above description of the valuation process for real estate and related intangibles. NorthStar II’s noncontrolling interest is attributable to the minority ownership interest of its operating partner in its Bothell, Washington office portfolio. The estimated value of NorthStar II’s noncontrolling interest represents the operating partner’s pro rata share of the estimated net book value of the portfolio, as determined in accordance with the above description of the valuation process for real estate and related intangibles. The major classes of intangible assets and liabilities include leasing commissions, above- and below-market lease values and in-place lease values.

Results of NorthStar I and NorthStar II

For the three months ended March 31, 2018, the Company’s results of operations included contributions from the acquired business of NorthStar I and NorthStar II as follows (dollars in thousands):



	February 1, 2018 to March 31, 2018
	NorthStar I			NorthStar II		Total
Total revenues	$	37,312		$	39,207	$	76,519

Net income (loss) attributable to common stockholders	(2,175		)	8,626		6,451

Combination-Related Costs

Transaction costs of $30.2 million were incurred in connection with the Combination in the three months ended March 31, 2018, consisting largely of professional fees for legal, financial advisory, accounting and consulting services. Approximately $24.3 million of the transaction costs represent fees paid to investment bankers that were contingent upon consummation of the Combination.

Additionally, the Company also incurred $5.9 million of other Combination-related costs during the three months ended March 31, 2018.

Combination-related costs are expensed as incurred and such costs expensed by NorthStar I and NorthStar II prior to the Closing Date were excluded from the Company's results of operations.

Pro Forma Financial Information (Unaudited)

The following table presents pro forma financial information of the Company as if the Combination had been consummated on January 1, 2017. The pro forma financial information includes the pro forma impact of purchase accounting adjustments primarily related to fair value adjustments and depreciation and amortization, and excludes Combination-related expenses of $30.2 million for the three months ended March 31, 2018. The pro forma financial information, however, does not reflect any potential benefits that may result from realization of future cost savings from operating efficiencies, or other incremental synergies expected to result from the Combination.

The pro forma financial information is presented for illustrative purposes only and is not necessarily indicative of the results of operations of the Company had the Combination been completed on January 1, 2017, nor indicative of future results of operations of the Company (dollars in thousands, except per share data):



	Three Months Ended March 31,
	2018		2017
Pro forma:
Total revenues	$	136,038	$	123,426
Net income (loss) attributable to Colony NorthStar Credit Real Estate, Inc.	37,628		49,196
Net income (loss) attributable to common stockholders	35,229		39,852
Earnings (loss) per common share:
Basic	$	0.27	$	0.31
Diluted	$	0.27	$	0.31

Loans Held for Investment, net

3 Months Ended

Mar. 31, 2018

Receivables [Abstract]

Loans Held for Investment, net

The following table provides a summary of the Company’s loans held for investment, net (dollars in thousands):



	March 31, 2018 (Unaudited)								December 31, 2017
	Unpaid Principal Balance		Carrying Value			Weighted Average Coupon		Weighted Average Maturity in Years	Unpaid Principal Balance		Carrying Value			Weighted Average Coupon		Weighted Average Maturity in Years
Non-PCI Loans
Fixed rate
Mortgage loans	$	16,240	$	16,159		10.5	%	6.0	$	471,669	$	463,748		8.3	%	2.0
Mezzanine loans	116,231		116,152			13.1	%	5.1	141,931		141,828			13.2	%	3.2
	132,471		132,311						613,600		605,576
Variable rate
Mortgage loans	$	1,039,007	$	1,046,581		6.6	%	3.1	$	260,366	$	260,932		8.1	%	2.3
Securitized loans⁽¹⁾	497,849		501,055			6.9	%	0.9	377,939		379,670			6.7	%	0.3
Mezzanine loans	109,821		110,014			10.1	%	3.4	34,391		34,279			9.8	%	1.3
Preferred equity interests	26,488		26,774			14.2	%	1.7	—		—			—		—
	1,673,165		1,684,424						672,696		674,881
	1,805,636		1,816,735						1,286,296		1,280,457
PCI Loans
Mortgage loans	—		—						21,444		20,844

Allowance for loan losses	NA		(517		)				NA		(517		)
Loans held for investment, net	$	1,805,636	$	1,816,218					$	1,307,740	$	1,300,784

_________________________________________


(1)	Represents loans transferred into securitization trusts that are consolidated by the Company.

Activity relating to the Company’s loans held for investments, net was as follows (dollars in thousands):



	Carrying Value
Balance at January 1, 2018	$	1,300,784
Loans held for investment acquired in the Combination (refer to Note 3)	1,249,733
Deconsolidation of investment entities⁽¹⁾	(553,678		)
Acquisitions/originations/additional funding	5,059
Loan maturities/principal repayments	(136,913		)
Combination adjustment⁽²⁾	(50,314		)
Discount accretion/premium amortization	1,017
Capitalized interest	530
Balance at March 31, 2018	$	1,816,218

_________________________________________


(1)	Represents loans held for investment, net which were deconsolidated as a result of the Combination. Refer to Note 2, “Summary of Significant Accounting Policies,” for further detail.


(2)	Represents a loan held for investment, net that was previously sold by the CLNS Investment Entities to NorthStar I and was treated as a secured financing by the CLNS Investment Entities. This loan was eliminated as a result of the Combination.

Nonaccrual and Past Due Loans

Non-PCI loans that are 90 days or more past due as to principal or interest, or where reasonable doubt exists as to timely collection, are generally considered nonperforming and placed on nonaccrual status.

In March 2018, the borrower on the Company’s $260.2 million NY hospitality loan failed to make its interest payment. The Company has placed the loan on non-accrual status and has commenced discussions with the borrower to resolve the matter. No provision for loan loss was recorded during the three months ended March 31, 2018 as the Company believes sufficient collateral value exists to cover the outstanding loan balances. These discussions typically include numerous points of negotiation as the Company and the borrower work towards a settlement or other alternative resolution, which can impact the potential for loan repayment or receipt of collateral.

The following table provides an aging summary of non-PCI loans held for investment at carrying values before allowance for loan losses (dollars in thousands):



	Current or Less Than 30 Days Past Due		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due / Nonaccrual ⁽¹⁾		Total Non-PCI Loans
March 31, 2018 (Unaudited)	$	1,384,599	$	—	$	—	$	432,136	$	1,816,735
December 31, 2017	1,101,522		144,241		7,929		26,765		1,280,457

_________________________________________


(1)	Loans held for investment with a total carrying value of $42.2 million which were 90 days or more past due repaid in full subsequent to March 31, 2018.

Troubled Debt Restructuring

At March 31, 2018 and December 31, 2017, there was one mezzanine loan previously modified in a TDR with carrying value before allowance for loan losses of $28.6 million. The loan had been modified in 2015. The Company also has three other loans with a combined carrying value of $108.5 million that are cross-defaulted with the TDR loan to the same borrower. Two loans matured in November 2017 and were in default at both March 31, 2018 and December 31, 2017, while the third loan remains current. All four loans are collateralized with 27 office, retail, multifamily and industrial properties with an estimated aggregate fair value of approximately $137.1 million. In February 2018, the borrower and the Company entered into a forebearance agreement to allow both parties to review the exit strategy for a period through the end of May 2018, which may be extended at the Company’s option for an additional 90 day period. No provision for loan loss was made at March 31, 2018 or December 31, 2017 on the two defaulted loans as the Company believes there is sufficient collateral value to cover the outstanding loan balances in aggregate. The Company has no additional commitments to lend to the borrower with the TDR loan.

There were no loans modified as TDRs during the three months ended March 31, 2018 and year ended December 31, 2017.

Non-PCI Impaired Loans

Non-PCI loans are identified as impaired when it is no longer probable that interest or principal will be collected according to the contractual terms of the original loan agreement. Non-PCI impaired loans include predominantly loans under nonaccrual, performing and nonperforming TDRs. The following table presents non-PCI impaired loans at the respective reporting dates (dollars in thousands):



	Unpaid Principal Balance		Gross Carrying Value
	Unpaid Principal Balance		With Allowance for Loan Losses		Without Allowance for Loan Losses		Total		Allowance for Loan Losses
March 31, 2018 (Unaudited)	$	430,053	$	42,176	$	389,960	$	432,136	$	517
December 31, 2017	215,997		42,176		175,090		217,266		517

The average carrying value and interest income recognized on non-PCI impaired loans were as follows (dollars in thousands):



	Three Months Ended March 31,
	2018		2017
Average carrying value before allowance for loan losses	$	385,067	$	40,066
Interest income	3,758		756

Purchased Credit-Impaired Loans

PCI loans are acquired loans with evidence of credit quality deterioration for which it is probable at acquisition that the Company will collect less than the contractually required payments.

Changes in accretable yield of PCI loans were as follows (dollars in thousands):



	Three Months Ended March 31,
	2018			2017
Beginning accretable yield	$	726		$	5,929
Changes in accretable yield⁽¹⁾	(605		)	(572		)
Accretion recognized in earnings	(121		)	(1,522		)
Ending accretable yield	$	—		$	3,835

_________________________________________


(1)	Change in accretable yield during the three months ended March 31, 2018 is a result of the deconsolidation of certain CLNS Contributed Portfolio investments.

Allowance for Loan Losses

As of March 31, 2018 and December 31, 2017 the allowance for loan losses was $0.5 million related to $42.2 million in carrying value of non-PCI loans.

Changes in allowance for loan losses on non-PCI loans are presented below (dollars in thousands):



	Three Months Ended March 31,
	2018			2017
Allowance for loan losses at beginning of period	$	(517	)	$	(3,386	)
Provision for loan losses	—			—
Charge-off	—			3,210
Allowance for loan losses at end of period	$	(517	)	$	(176	)

As of March 31, 2018, the weighted average maturity, including extensions, of CRE debt investments was 2.7 years.

Credit Quality Monitoring

CRE debt investments are typically loans secured by direct senior priority liens on real estate properties or by interests in entities that directly own real estate properties, which serve as the primary source of cash for the payment of principal and interest. The Company evaluates its debt investments at least quarterly and differentiates the relative credit quality principally based on: (i) whether the borrower is currently paying contractual debt service in accordance with its contractual terms; and (ii) whether the Company believes the borrower will be able to perform under its contractual terms in the future, as well as the Company’s expectations as to the ultimate recovery of principal at maturity.

As of March 31, 2018, there were seven real estate debt investments with contractual payments past due. The remaining CRE debt investments were performing in accordance with the contractual terms of their governing documents and were categorized as performing loans. There were seven real estate debt investments with contractual payments past due as of December 31, 2017. For the three months ended March 31, 2018, no debt investment contributed more than 10.0% of interest income.

Lending Commitments

The Company has lending commitments to borrowers pursuant to certain loan agreements in which the borrower may submit a request for funding contingent on achieving certain criteria, which must be approved by the Company as lender, such as leasing, performance of capital expenditures and construction in progress with an approved budget. At March 31, 2018, assuming the terms to qualify for future fundings, if any, have been met, total unfunded lending commitments was $53.6 million for mortgage loans, $12.5 million for securitized loans, and $2.2 million for preferred equity interests. Future funding commitments were $19.2 million for mortgage loans at December 31, 2017.

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

Investments in Unconsolidated Ventures

3 Months Ended

Mar. 31, 2018

Equity Method Investments and Joint Ventures [Abstract]

Investments in Unconsolidated Ventures

Summary

The Company’s investments in unconsolidated ventures represent noncontrolling equity interests in various entities, as follows (dollars in thousands):



	March 31, 2018 (Unaudited)		December 31, 2017
Equity method investments
Investment ventures	$	498,973	$	179,303
	498,973		179,303
Investments under fair value option
Private funds	257,495		24,417
	$	756,468	$	203,720

Equity Method Investments

Investment Ventures

Certain of the Company’s equity method investments are structured as joint ventures with one or more private funds or other investment vehicles managed by the Colony NorthStar with third party joint venture partners. These investment entities are generally capitalized through equity contributions from the members, although certain investments are leveraged through various financing arrangements.

The assets of the equity method investment entities may only be used to settle the liabilities of these entities and there is no recourse to the general credit of the Company nor the other investors for the obligations of these investment entities. Neither the Company nor the other investors are required to provide financial or other support in excess of their capital commitments. The Company’s exposure to the investment entities is limited to its equity method investment balance as of March 31, 2018 and December 31, 2017, respectively.

As discussed in Note 2, “Summary of Significant Accounting Policies”, certain of the CLNS Investment Entities were deconsolidated by the Company upon closing of the Combination and accounted for as investments in unconsolidated ventures. The Company’s investments accounted for under the equity method are summarized below (dollars in thousands):

Ownership Interest⁽¹⁾ at March 31, 2018

Carrying Value

Investments

Description

March 31, 2018 (Unaudited)

December 31, 2017

ADC investments

Interests in eight acquisition, development and construction loans in which the Company participates in residual profits from the projects, and the risk and rewards of the arrangements are more similar to those associated with investments in joint ventures

Various⁽²⁾

320,991

179,303

Other investment ventures

Interests in 10 investments, each with less than $60.4 million carrying value at March 31, 2018

Various

177,982

—

_________________________________________

(1)

The Company’s ownership interest represents capital contributed to date and may not be reflective of the Company’s economic interest in the entity because of provisions in operating agreements governing various matters, such as classes of partner or member interests, allocations of profits and losses, preferential returns and guaranty of debt. Each equity method investment has been determined to be a VIE for which the Company was not deemed to be the primary beneficiary or a voting interest entity in which the Company does not have the power to control through a majority of voting interest or through other arrangements.


(2)	The Company owns varying levels of stated equity interests in certain ADC investments, as well as profit participation interests in real estate ventures without a stated ownership interest in other ADC investments.

Investments under Fair Value Option

The Company elected to account for its limited partnership interests, which range from 0.1% to 30.3%, in PE Investments under the fair value option. The Company records equity in earnings for these investments based on a change in fair value of its share of projected future cash flows.

Summarized Financial Information

The combined statements of operations for the unconsolidated ventures, including PE Investments and excluding unconsolidated ventures accounted for under the cost method, for the three months ended March 31, 2018 and 2017, are as follows (dollars in thousands):



	Three Months Ended March 31,⁽¹⁾
	2018		2017
Total revenues	$	19,938	$	7,803
Net income (loss)⁽²⁾	10,107		6,937

_________________________________________


(1)	Includes summarized financial information for PE Investments on a one quarter lag, which is the most recent financial information available from the underlying funds.


(2)	Includes net investment income and unrealized and realized gains and losses for PE Investments.

Real Estate, net

3 Months Ended

Mar. 31, 2018

Real Estate [Abstract]

Real Estate, net

The following table presents the Company’s net lease portfolio, net, as of March 31, 2018 and December 31, 2017 (dollars in thousands):



	March 31, 2018 (Unaudited)			December 31, 2017
Land and improvements	$	102,764		$	25,262
Buildings, building leaseholds, and improvements	575,589			178,109
Tenant improvements	8,901			2,316
Construction-in-progress	23			21
Subtotal	$	687,277		$	205,708
Less: Accumulated depreciation	(10,294		)	(5,516		)
Net lease portfolio, net	$	676,983		$	200,192

The following table presents the Company’s other portfolio, net, as of March 31, 2018 and December 31, 2017 (dollars in thousands):



	March 31, 2018 (Unaudited)			December 31, 2017
Land and improvements	$	134,675		$	667
Buildings, building leaseholds, and improvements	643,527			18,477
Tenant improvements	28,641			36
Furniture, fixtures and equipment	15,526			680
Construction-in-progress	500			—
Subtotal	$	822,869		$	19,860
Less: Accumulated depreciation	(4,756		)	(312		)
Other portfolio, net	$	818,113		$	19,548

For the three months ended March 31, 2018, the Company had no single property with rental and other income equal to or greater than 10.0% of total revenue.

At March 31, 2018, the Company held foreclosed properties included in real estate, net with a carrying value of $19.9 million. At December 31, 2017, the Company held foreclosed properties with a carrying value of $19.5 million.

Minimum Future Rents

Minimum rental amounts due under leases are generally either subject to scheduled fixed increases or adjustments. The following table presents approximate future minimum rental income under non-cancellable operating leases to be received over the next five years and thereafter as of March 31, 2018 (dollars in thousands):



Remainder of 2018	$	66,776
2019	83,587
2020	74,400
2021	62,095
2022	50,667
2023 and thereafter	94,018
Total	$	431,543

The rental properties owned at March 31, 2018 are leased under non-cancellable operating leases with current expirations ranging from 2018 to 2029, with certain tenant renewal rights. For certain properties, the tenants pay the Company, in addition to the contractual base rent, their pro rata share of real estate taxes and operating expenses. Certain lease agreements provide for periodic rental increases and others provide for increases based on the consumer price index.

Commitments and Contractual Obligations

Ground Lease Obligation

In connection with real estate acquisitions, the Company assumed certain noncancelable operating ground leases as lessee or sublessee with expiration dates through 2027. Rents on certain ground leases are paid directly by the tenants. Ground rent expense for the three months ended March 31, 2018 and 2017 was approximately $0.7 million and de minimis, respectively.

At March 31, 2018, future minimum rental payments, excluding contingent rents, on noncancelable ground leases on real estate were as follows (dollars in thousands):



Remainder of 2018	$	2,115
2019	2,821
2020	2,812
2021	2,720
2022	1,798
2023 and thereafter	2,891
Total	$	15,157

Real Estate Securities, Available for Sale

3 Months Ended

Mar. 31, 2018

Investments, Debt and Equity Securities [Abstract]

Real Estate Securities, Available for Sale

Investments in CRE Securities

CRE securities are comprised of CMBS backed by a pool of CRE loans which are typically well-diversified by type and geography. The following table presents CMBS investments as of March 31, 2018 (dollars in thousands):



																Weighted Average
		Principal Amount⁽¹⁾		Total Discount			Amortized Cost		Cumulative Unrealized on Investments					Fair Value		Coupon⁽³⁾		Unleveraged Current Yield
As of Date:	Count	Principal Amount⁽¹⁾		Total Discount			Amortized Cost		Gain		(Loss)			Fair Value		Coupon⁽³⁾		Unleveraged Current Yield
March 31, 2018⁽²⁾	32	$	234,357	$	(56,315	)	$	178,042	$	432	$	(2,280	)	$	176,194	3.15	%	7.36	%

_________________________________________


(1)	Certain CRE securities serve as collateral for financing transactions including carrying value of $139.6 million for the CMBS Credit Facilities (refer to Note 10). The remainder is unleveraged.


(2)	Includes a CRE security with an underlying loan that was non-performing at acquisition. The CRE security was acquired from NorthStar II for $31.3 million, net of a $16.9 million discount. As of March 31, 2018, the non-accretable amount of total cash flows was $4.9 million.


(3)	All CMBS are fixed rate.

The Company acquired the CRE Securities from NorthStar I and NorthStar II in the Combination. The Company held no CRE Securities as of December 31, 2017.

The Company recorded an unrealized loss in OCI for the three months ended March 31, 2018 of $1.8 million. As of March 31, 2018, the Company held 25 securities with an aggregate carrying value of $138.2 million with an unrealized loss of $2.3 million. Based on management’s quarterly evaluation, no OTTI was identified related to these securities. The Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell these securities prior to recovery of its amortized cost basis, which may be at maturity.

As of March 31, 2018, the weighted average contractual maturity of CRE securities was 29.9 years with an expected maturity of 7.9 years.

Investments in Investing VIEs

The Company is the directing certificate holder of three securitization trusts and has the ability to appoint and replace the special servicer on all mortgage loans. As such, U.S. GAAP requires the Company to consolidate the assets, liabilities, income and expenses of the securitization trusts as Investing VIEs. Refer to Note 2, “Summary of Significant Accounting Policies” for further discussion on Investing VIEs.

Other than the securities represented by the Company’s subordinate tranches of the securitization trusts, the Company does not have any claim to the assets or exposure to the liabilities of the securitization trusts. The original issuers, who are unrelated third parties, guarantee the interest and principal payments related to the investment grade securitization bonds in the securitization trusts, therefore these obligations do not have any recourse to the general credit of the Company as the consolidator of the securitization trusts. The Company’s maximum exposure to loss would not exceed the carrying value of its retained investments in the securitization trusts, or the subordinate tranches of the securitization trusts.

As of March 31, 2018, the mortgage loans and the related mortgage obligations held in the securitization trusts had an unpaid principal balance of $3.1 billion and $2.9 billion, respectively. As of March 31, 2018, across the three consolidated securitization trusts, the underlying collateral consisted of 159 underlying mortgage loans, with a weighted average coupon of 4.9% and a weighted average loan to value ratio of 58.0%.

The following table presents the assets and liabilities recorded on the consolidated balance sheets attributable to the securitization trust as of March 31, 2018 (dollars in thousands):



	March 31, 2018
Assets
Mortgage loans held in a securitization trust, at fair value	$	3,193,298
Receivables, net	13,337
Total assets	$	3,206,635
Liabilities
Mortgage obligations issued by a securitization trust, at fair value	$	3,051,315
Accrued and other liabilities	12,490
Total liabilities	$	3,063,805

The Company elected the fair value option to measure the assets and liabilities of the securitization trusts, which requires that changes in valuations of the securitization trusts be reflected in the Company’s consolidated statements of operations.

The difference between the carrying values of the mortgage loans held in securitization trusts and the carrying value of the mortgage obligations issued by securitization trusts was $142.0 million as of March 31, 2018 and approximates the fair value of the Company’s underlying investments in the subordinate tranches of the securitization trusts, which are eliminated in consolidation. Refer to Note 15, “Fair Value” for a description of the valuation techniques used to measure fair value of assets and liabilities of the Investing VIEs.

The following table presents the activity recorded for the three months ended March 31, 2018 related to the consolidated securitization trusts on the consolidated statement of operations. Approximately $2.2 million for the three months ended March 31, 2018, relates to net income attributable to the Company’s common stockholders generated from the Company’s investments in the subordinate tranches of the securitization trusts (dollars in thousands):



	Three Months Ended March 31, 2018
Statement of Operations
Interest income on mortgage loans held in securitization trusts	$	25,865
Interest expense on mortgage obligations issued by securitization trusts	(24,277		)
Net interest income	1,588
Administrative expenses	99
Unrealized gain (loss) on mortgage loans and obligations held in securitization trusts, net	497
Net income attributable to Colony NorthStar Credit Real Estate, Inc. common stockholders	$	2,184

Deferred Leasing Costs and Other Intangibles

3 Months Ended

Mar. 31, 2018

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Deferred Leasing Costs and Other Intangibles

The Company’s deferred leasing costs, other intangible assets and intangible liabilities at March 31, 2018 and December 31, 2017 are as follows (dollars in thousands):



	March 31, 2018 (Unaudited)
	Carrying Amount		Accumulated Amortization			Net Carrying Amount
Deferred Leasing Costs and Intangible Assets
In-place lease values	$	77,303	$	(11,203	)	$	66,100
Above-market lease values	20,027		(1,190		)	18,837
Below-market ground lease obligations	52		(10		)	42
Deferred leasing costs	29,940		(1,680		)	28,260
	$	127,322	$	(14,083	)	$	113,239
Intangible Liabilities
Below-market lease values	$	20,453	$	(816	)	$	19,637



	December 31, 2017
	Carrying Amount		Accumulated Amortization			Net Carrying Amount
Deferred Leasing Costs and Intangible Assets
In-place lease values	$	9,214	$	(2,657	)	$	6,557
Above-market lease values	1,682		(283		)	1,399
Below-market ground lease obligations	52		(8		)	44
Deferred leasing costs	3,671		(657		)	3,014
	$	14,619	$	(3,605	)	$	11,014
Intangible Liabilities
Below-market lease values	$	51	$	(15	)	$	36

The following table summarizes the amortization of deferred leasing costs, intangible assets and intangible liabilities for the three months ended March 31, 2018 and 2017 (dollars in thousands):



	Three Months Ended March 31,
	2018			2017
Above-market lease values	$	(907	)	$	(65	)
Below-market lease values	801			3
Net decrease to rental income	$	(106	)	$	(62	)

Below-market ground lease obligations	$	2		$	2
Increase to ground rent expense	$	2		$	2

In-place lease values	$	8,546		$	812
Deferred leasing costs	1,023			160
Amortization expense	$	9,569		$	972

The following table presents the amortization of deferred leasing costs, intangible assets and intangible liabilities for each of the next five years and thereafter as of March 31, 2018 (dollars in thousands):




	Remainder of 2018			2019			2020			2021			2022			2023 and thereafter			Total
Above-market lease values	$	3,386		$	4,317		$	3,252		$	2,340		$	1,841		$	3,701		$	18,837
Below-market lease values	(3,467		)	(4,566		)	(2,527		)	(1,895		)	(1,732		)	(5,450		)	(19,637		)
Decrease to rental income	$	(81	)	$	(249	)	$	725		$	445		$	109		$	(1,749	)	$	(800	)

Below-market ground lease obligations	$	6		$	8		$	8		$	8		$	8		$	4		$	42
Increase to property operating expense	$	6		$	8		$	8		$	8		$	8		$	4		$	42

In-place lease values	$	18,374		$	16,048		$	10,565		$	7,256		$	5,485		$	8,372		$	66,100
Deferred leasing costs	5,285			6,248			4,958			3,763			2,895			5,111			28,260
Amortization expense	$	23,659		$	22,296		$	15,523		$	11,019		$	8,380		$	13,483		$	94,360

Other Assets and Liabilities

3 Months Ended

Mar. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Other Assets and Liabilities

The following table presents a summary of other assets as of March 31, 2018 and December 31, 2017 (dollars in thousands):



	March 31, 2018 (Unaudited)		December 31, 2017
Other assets:
Prepaid taxes and deferred tax assets	$	49,484	$	1,050
Deferred financing costs, net - credit facilities	3,930		—
Prepaid expenses	3,556		360
Derivative asset	28		117
Total	$	56,998	$	1,527

The following table presents a summary of accrued and other liabilities as of March 31, 2018 and December 31, 2017 (dollars in thousands):



	March 31, 2018 (Unaudited)		December 31, 2017
Accrued and other liabilities:
Accounts payable, accrued expenses and other liabilities	$	21,286	$	3,532
Interest payable	17,070		924
Prepaid rent and unearned revenue	6,164		481
Tenant security deposits	3,132		118
Current and deferred tax liability	1,020		120
Derivative liability	1,224		—
Total	$	49,896	$	5,175

Debt

3 Months Ended

Mar. 31, 2018

Debt Disclosure [Abstract]

Debt

The following table presents debt as of March 31, 2018 and December 31, 2017 (dollars in thousands):

March 31, 2018 (Unaudited)

December 31, 2017

Capacity ($)

Recourse vs.
Non-Recourse⁽¹⁾

Final
Maturity

Contractual
Interest Rate

Principal
Amount⁽²⁾

Carrying
Value⁽²⁾

Principal
Amount⁽²⁾

Carrying
Value⁽²⁾

Bank credit facility

400,000

Recourse

Feb-23⁽³⁾

LIBOR + 2.25%

—

Securitization bonds payable, net



							March 31, 2018 (Unaudited)		December 31, 2017
	Capacity ($)		Recourse vs. Non-Recourse⁽¹⁾	Final Maturity	Contractual Interest Rate		Principal Amount⁽²⁾	Carrying Value⁽²⁾	Principal Amount⁽²⁾	Carrying Value⁽²⁾
2014 FL1⁽⁴⁾			Non-recourse	Apr-31	LIBOR + 3.24%		27,119	27,119	27,119	27,004
2014 FL2⁽⁴⁾			Non-recourse	Nov-31	LIBOR + 3.65%		47,580	47,560	55,430	55,430
2015 FL3⁽⁴⁾⁽⁵⁾			Non-recourse	Sep-32	LIBOR + 4.50%		16,621	16,609	26,245	26,245
Securitization 2016-1			Non-recourse	Sep-31	LIBOR + 2.74%		80,825	80,825	—	—
Subtotal securitization bonds payable, net							172,145	172,113	108,794	108,679

Mortgage and other notes payable, net
Net lease 1			Non-recourse	Oct-27	4.45%		24,955	24,955	25,074	25,022
Net lease 2			Non-recourse	Nov-26	4.45%		3,529	3,413	3,544	3,425
Net lease 3			Non-recourse	Nov-26	4.45%		7,615	7,364	7,647	7,390
Net lease 4			Non-recourse	Jun-21	4.00%		13,057	12,877	13,133	12,939
Net lease 5			Non-recourse	Jul-23	LIBOR + 2.15%		2,383	2,320	2,482	2,416
Net lease 6			Non-recourse	Aug-26	4.08%		32,600	32,245	32,600	32,234
Net lease 7⁽⁶⁾			Non-recourse	Nov-26	4.45%		19,158	18,529	19,241	18,593
Net lease 8			Non-recourse	Mar-28	4.38%		12,585	12,029	—	—
Net lease 9			Non-recourse	Apr-21	LIBOR + 2.20%		71,890	71,830	—	—
Net lease 10			Non-recourse	Jul-25	4.31%		250,000	246,124	—	—
Hotel development loan⁽⁷⁾			Non-recourse	Oct-19	LIBOR + 3.50%		—	—	130,000	128,649
Hotel A-Note⁽⁸⁾			Non-recourse	May-23	LIBOR + 1.60%		—	—	50,314	50,314
Multifamily 1			Non-recourse	Dec-23	4.84%		43,500	44,086	—	—
Multifamily 2			Non-recourse	Dec-23	4.94%		43,000	43,578	—	—
Multifamily 3			Non-recourse	Jan-24	5.15%		16,000	16,663
Multifamily 4⁽⁹⁾			Non-recourse	Dec-20	5.27%		12,135	12,502
Multifamily 5			Non-recourse	Nov-26	3.98%		24,606	23,708
Office 1			Non-recourse	Oct-24	4.47%		108,850	109,921	—	—
Office 2			Non-recourse	Jan-25	4.30%		77,381	76,449	—	—
Office 3			Non-recourse	Apr-23	LIBOR + 3.99%		29,800	28,217	—	—
Multi-tenant office			Non-recourse	Aug-20⁽¹⁰⁾	LIBOR + 1.78%		96,143	96,797	—	—
Other notes payable			Limited recourse⁽¹¹⁾	Dec-20⁽¹²⁾	LIBOR + 2.48%		40,411	40,411	—	—
Subtotal mortgage and other notes payable, net							929,598	924,018	284,035	280,982

Master repurchase facilities
Bank 1 facility 1	$	150,000	Limited Recourse⁽¹³⁾	Oct-21⁽¹⁴⁾	LIBOR + 2.35%	(15)	42,840	42,840	—	—
Bank 1 facility 2	150,000		Limited Recourse⁽¹³⁾	Oct-19⁽¹⁶⁾	LIBOR + 2.43%	(15)	48,750	48,750	—	—
Bank 2 facility 1	200,000		Limited Recourse⁽¹⁷⁾	Jul-18	NA		—	—	—	—
Bank 2 facility 2	200,000		Limited Recourse⁽¹⁷⁾	Jul-19⁽¹⁸⁾	LIBOR + 2.35%	(15)	26,742	26,742	—	—
Bank 3 facility 1	200,000		Limited Recourse⁽¹⁹⁾	(20)	LIBOR + 2.37%	(15)	179,994	179,994	—	—
Bank 3 facility 2	300,000		Limited Recourse⁽¹⁹⁾	(21)	LIBOR + 2.41%	(15)	202,934	202,934	—	—
Subtotal master repurchase facilities	$	1,200,000					501,260	501,260	—	—

CMBS credit facilities
Bank 3 facility			Recourse	(22)	NA		—	—	—	—
Bank 4 facility			Recourse	(22)	NA		—	—	—	—
Bank 5 facility 2			Recourse	(22)	NA		—	—	—	—
Bank 1 facility 1			Recourse	(22)	LIBOR + 1.45%	(15)	29,185	29,185	—	—
Bank 1 facility 2			Recourse	(22)	LIBOR + 1.43%	(15)	10,568	10,568	—	—



						March 31, 2018 (Unaudited)				December 31, 2017
	Capacity ($)	Recourse vs. Non-Recourse⁽¹⁾	Final Maturity	Contractual Interest Rate		Principal Amount⁽²⁾		Carrying Value⁽²⁾		Principal Amount⁽²⁾		Carrying Value⁽²⁾
Bank 5 facility 1		Recourse	(22)	LIBOR + 1.16%	(15)	2,546		2,546		—		—
Bank 6 facility 1		Recourse	(22)	LIBOR + 1.37%	(15)	23,684		23,684		—		—
Bank 6 facility 2		Recourse	(22)	LIBOR + 1.25%	(15)	35,034		35,034		—		—
Subtotal CMBS credit facilities						101,017		101,017		—		—
Subtotal master repurchase facilities						602,277		602,277		—		—

Total						$	1,704,020	$	1,698,408	$	392,829	$	389,661

_________________________________________


(1)	Subject to customary non-recourse carveouts.


(2)	Difference between principal amount and carrying value of securitization bonds payable, net and mortgage and other notes payable, net is attributable to deferred financing costs, net and premium/discount on mortgage notes payable.


(3)	The ability to borrow additional amounts terminates on February 1, 2022 at which time the Company may, at its election, extend the termination date for two additional six month terms.

(4)

The Company, through indirect Cayman subsidiaries, securitized commercial mortgage loans originated by the Company. Senior notes issued by the securitization trusts were generally sold to third parties and subordinated notes retained by the Company. These securitizations are accounted for as secured financing with the underlying mortgage loans pledged as collateral. Principal payments from underlying collateral loans must be applied to repay the notes until fully paid off, irrespective of the contractual maturities on the notes. Underlying collateral loans have initial terms of two to three years.


(5)	2015 FL3 was repaid in full subsequent to March 31, 2018.


(6)	Payment terms are periodic payment of principal and interest for debt on two properties and periodic payment of interest only with principal at maturity (except for principal repayments to release collateral properties disposed) for debt on one property.

(7)

A development loan originated by the Company was restructured into a senior and junior note, with the senior note assumed by a third party lender. The Company accounted for the transfer of the senior note as a financing transaction. The senior note bears interest at one-month LIBOR plus 3.5%, with a 4.0% floor, and is subject to two one-year extension options on its initial term, exercisable by the borrower. The investment entity that held the debt was deconsolidated upon closing of the Combination (refer to Note 2, “Summary of Significant Accounting Policies”).

(8)

Represents the Company’s senior participation interest in a first mortgage loan that was transferred at cost into a securitization trust with the transfer accounted for as a secured financing transaction. The Company did not retain any legal interest in the senior participation and retained the junior participation on an unleveraged basis. The secured financing transaction was eliminated as a result of the Combination (refer to Note 4, “Loans Held for Investment, net”).


(9)	Represents two separate senior mortgage notes with a weighted average maturity of December 1, 2020 and weighted average interest rate of 5.27%.


(10)	The initial maturity of the mortgage payable is August 2018, with a two-year extension available at the Company’s option, which may be subject to the satisfaction of certain customary conditions set forth in the governing documents.


(11)	Recourse solely with respect to 25.0% of the financed amount.


(12)	The initial maturity of the note payable is December 2018, with two one-year extensions available at the Company’s option, which may be subject to the satisfaction of certain customary conditions set forth in the governing documents.


(13)	Recourse solely with respect to 25.0% of the repurchase price for purchased assets with a lender debt yield equal to or greater than 10.0% at the time of financing plus 100.0% of the repurchase price for purchased assets with a lender debt yield less than 10.0% at the time of financing.


(14)	The next maturity date is October 2018, with three, one-year extensions available at the option of the Company, which may be exercised upon the satisfaction of certain customary conditions set forth in the governing documents.


(15)	Represents the weighted average spread as of March 31, 2018. The contractual interest rate depends upon asset type and characteristics and ranges from one-month to six-month LIBOR plus 1.20% to 2.75%.


(16)	The next maturity date is October 2018, with a one-year extension available, which may be subject to the satisfaction of certain customary conditions set forth in the governing documents.


(17)	Recourse solely with respect to the greater of: (i) 25.0% of the financed amount of stabilized loans plus the financed amount of transitional loans, as further defined in the governing documents; or (ii) the lesser of $25.0 million or the aggregate financed amount of all loans.


(18)	The Company has exercised the third of four, one-year extensions available at the Company’s option, respectively. These extensions may be subject to the satisfaction of certain customary conditions set forth in the governing documents.


(19)	Recourse solely with respect to 25.0% of the financed amount.


(20)	The initial maturity is October 2018. The Company may, at its option, extend the facility for one-year periods indefinitely, subject to the approval of the global financial institution.


(21)	The initial maturity is June 2019. The Company may, at its option, extend the facility for one-year periods indefinitely, subject to the approval of the global financial institution.


(22)	The maturity dates on the CMBS Credit Facilities are dependent upon asset type and will typically range from three to six months.

Future Minimum Principal Payments

The following table summarizes future scheduled minimum principal payments at March 31, 2018 based on current contractual maturity (dollars in thousands):



	Total		Securitization Bonds Payable, Net		Mortgage Notes Payable, Net		Credit Facilities
Remainder of 2018	$	419,172	$	—	$	138,161	$	281,011
2019	280,970		—		2,544		278,426
2020	14,778		—		14,778		—
2021	159,053		—		116,213		42,840
2022	2,519		—		2,519		—
2023 and thereafter	827,528		172,145		655,383		—
Total	$	1,704,020	$	172,145	$	929,598	$	602,277

Bank Credit Facility

On February 1, 2018, the Company, through subsidiaries, entered into a credit agreement with several lenders to provide a revolving credit facility in the aggregate principal amount of up to $400.0 million (the “Bank Credit Facility”). The ability to borrow additional amounts under the Bank Credit Facility terminates on February 1, 2022, at which time the Company may, at its election, extend the termination date for two additional six month terms.

The maximum amount available for borrowing at any time under the Bank Credit Facility is limited to a borrowing base valuation of certain investment assets, with the valuation of such investment assets generally determined according to a percentage of adjusted net book value. At March 31, 2018, the borrowing base valuation was sufficient to permit borrowings up to the entire $400.0 million commitment.

Advances under the Bank Credit Facility accrue interest at a per annum rate equal to, at the Company’s election, either a LIBOR rate plus a margin of 2.25%, or a base rate determined according to a prime rate or federal funds rate plus a margin of 1.25%. At March 31, 2018, the Company had no outstanding borrowings. The Company pays a commitment fee of 0.25% or 0.35% per annum of the unused amount (0.35% at March 31, 2018), depending upon the amount of facility utilization.

Some of the Company’s subsidiaries guaranty the obligations of the Company under the Bank Credit Facility. As security for the advances under the Bank Credit Facility, the Company pledged substantially all equity interests it owns as well as a security interest in deposit accounts of the Company in which the proceeds of investment asset distributions are maintained.

The Bank Credit Facility contains various affirmative and negative covenants including financial covenants that require the Company to maintain minimum tangible net worth, liquidity levels and financial ratios, as defined in the Bank Credit Facility. At March 31, 2018, the Company was in compliance with all of the financial covenants.

Securitization Financing Transactions

Securitization bonds payable, net represent debt issued by securitization vehicles consolidated by the Company. Senior notes issued by these securitization trusts were generally sold to third parties and subordinated notes retained by the Company. Payments from underlying collateral loans must be applied to repay the notes until fully paid off, irrespective of the contractual maturities of the loans.

As of March 31, 2018, the Company had $500.7 million carrying value of CRE debt investments financed with $172.1 million of securitization bonds payable, net.

Master Repurchase Facilities

As of March 31, 2018, the Company, through subsidiaries, had entered into repurchase agreements with multiple global financial institutions to provide an aggregate principal amount of up to $1.2 billion to finance the origination of first mortgage loans and senior loan participations secured by CRE debt investments (“Master Repurchase Facilities”). The Company agreed to guarantee certain obligations under the Master Repurchase Facilities, which contain representations, warranties, covenants, conditions precedent to funding, events of default and indemnities that are customary for agreements of this type. The Master Repurchase Facilities act as revolving loan facilities that can be paid down as assets are repaid or sold and re-drawn upon for new investments. As of March 31, 2018, the Company was in compliance with all of its financial covenants under the Master Repurchase Facilities.

As of March 31, 2018, the Company had $703.0 million carrying value of CRE debt investments financed with $501.3 million under the Term Loan Facilities.

On April 20, 2018, the Company, through subsidiaries, entered into an Amended and Restated Master Repurchase and Securities Contract Agreement (“Bank 3 Facility 3”). The Repurchase Agreement provides up to $500.0 million to finance first mortgage loans, senior loan participations and other commercial mortgage loan debt instruments secured by commercial real estate. Refer to Note 18, “Subsequent Events” for further discussion.

On April 23, 2018, the Company, through subsidiaries, entered into a Master Repurchase Agreement (“Bank 1 Facility 3”). The Repurchase Agreement provides up to $300.0 million to finance first mortgage loans, senior loan participations and other commercial mortgage loan debt instruments secured by commercial real estate. Refer to Note 18, “Subsequent Events” for further discussion.

On April 26, 2018, the Company entered into a three-year master repurchase agreement with a major financial institution through a subsidiary (“Bank 7 Facility 1”). This agreement provides up to $500.0 million to finance the Company’s lending activities. Refer to Note 18, “Subsequent Events” for further discussion.

CMBS Credit Facilities

As of March 31, 2018, the Company has entered into seven master repurchase agreements (collectively the “CMBS Credit Facilities”) to finance CMBS investments. The CMBS Credit Facilities are on a recourse basis and contain representations, warranties, covenants, conditions precedent to funding, events of default and indemnities that are customary for agreements of this type. As of March 31, 2018, the Company had $139.6 million carrying value of CRE securities, financed with $101.0 million under its CMBS Credit Facilities.

Related Party Arrangements

3 Months Ended

Mar. 31, 2018

Related Party Arrangements

Management Agreement

On January 31, 2018, the Company and the OP entered into a management agreement (the “Management Agreement”) with the Manager, pursuant to which the Manager manages the Company’s assets and its day-to-day operations. The Manager will be responsible for, among other matters, (1) the selection, origination, acquisition, management and sale of the Company’s portfolio investments, (2) the Company’s financing activities and (3) providing the Company with investment advisory services. The Manager is also responsible for the Company’s day-to-day operations and will perform (or will cause to be performed) such services and activities relating to the Company’s investments and business and affairs as may be appropriate. The Management Agreement requires the Manager to manage the Company’s business affairs in conformity with the investment guidelines and other policies that are approved and monitored by the board of directors. Each of the Company’s executive officers is also an employee of the Manager or its affiliates. The Manager’s role as Manager will be under the supervision and direction of the Company’s board of directors.

The initial term of the Management Agreement expires on the third anniversary of the closing of the Combination and will be automatically renewed for a one-year term each anniversary date thereafter unless earlier terminated as described below. The Company’s independent directors review the Manager’s performance and the fees that may be payable to the Manager annually and, following the initial term, the Management Agreement may be terminated annually if there has been an affirmative vote of at least two-thirds of the Company’s independent directors determining that (1) there has been unsatisfactory performance by the Manager that is materially detrimental to the Company or (2) the compensation payable to the Manager, in the form of base management fees and incentive fees taken as a whole, or the amount thereof, is not fair to the Company, subject to the Manager’s right to prevent such termination due to unfair fees by accepting reduced compensation as agreed to by at least two-thirds of the Company’s independent directors. The Company must provide the Manager 180 days’ prior written notice of any such termination.

The Company may also terminate the Management Agreement for cause (as defined in the Management Agreement) at any time, including during the initial term, without the payment of any termination fee, with at least 30 days’ prior written notice from the Company’s board of directors. Unless terminated for cause, the Manager will be paid a termination fee as described below. The Manager may terminate the Management Agreement if the Company becomes required to register as an investment company under the Investment Company Act with such termination deemed to occur immediately before such event, in which case the Company would not be required to pay a termination fee. The Manager may decline to renew the Management Agreement by providing the Company with 180 days’ prior written notice, in which case the Company would not be required to pay a termination fee. The Manager may also terminate the Management Agreement with at least 60 days’ prior written notice if the Company breaches the Management Agreement in any material respect or otherwise is unable to perform its obligations thereunder and the breach continues for a period of 30 days after written notice to the Company, in which case the Manager will be paid a termination fee as described below.

Fees to Manager

Base Management Fee

The base management fee payable to the Manager is equal to 1.5% of the Company’s stockholders’ equity (as defined in the Management Agreement), per annum (0.375% per quarter), payable quarterly in arrears in cash. For purposes of calculating the base management fee, the Company’s stockholders’ equity means: (a) the sum of (1) the net proceeds received by the Company (or, without duplication, the Company’s direct subsidiaries, such as the OP) from all issuances of the Company’s or such subsidiaries’ common and preferred equity securities since inception (allocated on a pro rata basis for such issuances during the calendar quarter of any such issuance), plus (2) the Company’s cumulative core earnings (as defined in the Management Agreement) from and after the closing date of the Combination to the end of the most recently completed calendar quarter, less (b)(1) any distributions to the Company’s common stockholders (or owners of common equity of the Company’s direct subsidiaries, such as the OP, other than the Company or any of such subsidiaries), (2) any amount that the Company or any of the Company’s direct subsidiaries, such as the OP, have paid to (x) repurchase for cash the Company’s common stock or common equity securities of such subsidiaries or (y) repurchase or redeem for cash the Company’s preferred equity securities or preferred equity securities of such subsidiaries, in each case since the closing date of the Combination and (3) any incentive fee (as described below) paid to the Manager since the closing date of the Combination.

Incentive Fee

The incentive fee payable to the Manager is equal to the difference between (i) the product of (a) 20% and (b) the difference between (1) core earnings (as defined in the Management Agreement) for the most recent 12-month period (or the Closing Date if it has been less than 12 months since the Closing Date), including the current quarter, and (2) the product of (A) common equity (as defined in the Management Agreement) in the most recent 12-month period (or the Closing Date if it has been less than 12 months since the Closing Date), and (B) 7% per annum and (ii) the sum of any incentive fee paid to the Manager with respect to the first three calendar quarters of the most recent 12-month period (or the Closing Date if it has been less than 12 months since the Closing Date), provided, however, that no incentive fee is payable with respect to any calendar quarter unless core earnings (as defined in the Management Agreement) is greater than zero for the most recently completed 12 calendar quarters (or the Closing Date if it has been less than 12 calendar quarters since the Closing Date).

The Company did not incur any incentive fees during the three months ended March 31, 2018.

Reimbursements of Expenses

Reimbursement of expenses related to the Company incurred by the Manager, including legal, accounting, financial, due diligence and other services are paid on the Company’s behalf by the OP or its designee(s). The Company reimburses the Manager for the Company’s allocable share of the salaries and other compensation of the Company’s chief financial officer and certain of its affiliates’ non-investment personnel who spend all or a portion of their time managing the Company’s affairs, and the Company’s share of such costs are based upon the percentage of such time devoted by personnel of our Manager (or its affiliates) to the Company’s affairs. The Company may be required to pay the Company’s pro rata portion of rent, telephone, utilities, office furniture, equipment, machinery and other office, internal and overhead expenses of the Manager and its affiliates required for the Company’s operations.

Other Payables to Manager

Other payables to Manager include Combination related adjustments that consist of certain cash contributions from and distributions to Colony NorthStar or its subsidiaries on behalf of the CLNS Contributed Portfolio.

Manager Equity Plan

In March 2018, the Company granted 978,946 shares to its non-independent directors, officers and Manager and/or employees thereof under the 2018 Equity Incentive Plan (the “2018 Plan”). In connection with this grant, the Company recognized share-based compensation expense of $0.3 million to its Manager within administrative expense in the consolidated statement of operations for the three months ended March 31, 2018. See Note 12, “Equity-Based Compensation” for further discussion of the 2018 Plan.

Summary of Fees and Reimbursements

The following table presents the fees and reimbursements incurred and payable to the Manager for the three months ended March 31, 2018 and the amount due to related party as of March 31, 2018 and December 31, 2017 (dollars in thousands):



Type of Fee or Reimbursement	Financial Statement Location	Due to Related Party as of December 31, 2017		Three Months Ended March 31, 2018							Due to Related Party as of March 31, 2018 (Unaudited)
Type of Fee or Reimbursement	Financial Statement Location	Due to Related Party as of December 31, 2017		Combination Related Consideration		Incurred		Paid			Due to Related Party as of March 31, 2018 (Unaudited)
Fees to Manager
Management	Fee expense	$	—	$	—	$	8,000	$	—		$	8,000
Reimbursements to Manager
Operating costs	Administrative expense	—		—		1,715		—			1,715
Other
Other Payables to Manager	Additional paid-in capital	—		2,934		—		—			2,934
Liabilities assumed in the Combination	(1)	—		6,375		—		(6,375		)	—
Total		$	—	$	9,309	$	9,715	$	(6,375	)	$	12,649

_________________________________________


(1)	Represents due to related party balance assumed as a result of the Combination. Refer to Note 3, “Business Combinations,” for further detail.

Expense Allocations

For the three months ended March 31, 2017, the Company’s consolidated financial statements present the operations of the CLNS Investment Entities as carved out from the financial statements of Colony NorthStar. Certain general and administrative costs borne by Colony NorthStar, including, but not limited to, compensation and benefits, and corporate overhead, have been allocated to the CLNS Investment Entities using reasonable allocation methodologies. Such costs do not necessarily reflect what the actual general and administrative costs would have been if the CLNS Investment Entities had been operating as a separate stand-alone public company. For the three months ended March 31, 2017, a total of $3.0 million of allocated expenses are included as a component of administrative expenses in the Company’s consolidated statements of operations.

Investment Activity

In November 2016, NorthStar II entered into a $284.2 million securitization financing transaction (“Securitization 2016-1”). Securitization 2016-1 was collateralized by a pool of 10 CRE debt investments with a committed aggregate principal balance of $254.7 million primarily originated by NorthStar II and three senior participations with a committed aggregate principal balance of $29.5 million originated by NorthStar I. An affiliate of the Manager was appointed special servicer of Securitization 2016-1. The transaction was approved by the NorthStar II’s board of directors, including all of its independent directors. Securitization 2016-1 was assumed by the Company in connection with the Combination.

In July 2017, NorthStar II entered into a joint venture with an affiliate of the Manager to make a $60.0 million investment in a $180.0 million mezzanine loan which was originated by such affiliate of the Manager. The transaction was approved by NorthStar II’s board of directors, including all of its independent directors. The investment was purchased by the Company in connection with the Combination. The Company’s interest in the joint venture is 50.0% and its interest in the underlying mezzanine loan is 33.3%. The Company’s total commitment is $60.0 million.

Equity-Based Compensation

3 Months Ended

Mar. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Equity-Based Compensation

On January 29, 2018 the Company’s board of directors adopted the 2018 Plan. The 2018 Plan permits the grant awards with respect to 4.0 million shares of the Class A common stock, subject to adjustment pursuant to the terms of the 2018 Plan. Awards may be granted under the 2018 Plan to (x) the Manager or any employee, officer, director, consultant or advisor (who is a natural person) providing services to the Company, the Manager or their affiliates and (y) any other individual whose participation in the 2018 Plan is determined to be in the best interests of the Company. The following types of awards may be made under the 2018 Plan, subject to the limitations set forth in the plan: (i) stock options (which may be either incentive stock options or non-qualified stock options); (ii) stock appreciation rights (“SARs”); (iii) restricted stock awards; (iii) stock units; (iv) unrestricted stock awards; (v) dividend equivalent rights; (vi) performance awards; (vii) annual cash incentive awards; (viii) long-term incentive units; and (ix) other equity-based awards.

Shares subject to an award granted under the 2018 Plan will be counted against the maximum number of shares of Class A common stock available for issuance thereunder as one share of Class A common stock for every one share of Class A common stock subject to such an award. Shares subject to an award granted under the 2018 Plan will again become available for issuance under the 2018 Plan if the award terminates by expiration, forfeiture, cancellation, or otherwise without the issuance of such shares (except as set forth in the following sentence). The number of shares of Class A common stock available for issuance under the 2018 Plan will not be increased by (i) any shares tendered or withheld in connection with the purchase of shares upon exercise of a stock option, (ii) any shares deducted or delivered in connection with the Company’s tax withholding obligations, or (iii) any shares purchased by the Company with proceeds from stock option exercises. The shares granted to the independent directors of the Company under the 2018 Plan vest in May 2019. Shares granted to non-independent directors, officers and the Manager under the 2018 Plan vest ratably in three annual installments beginning in March 2018.

The table below summarizes our awards granted or vested under the 2018 Plan during the three months ended March 31, 2018:



	Number of Shares
	Restricted Stock	Total	Weighted Average Grant Date Fair Value
Unvested Shares at December 31, 2017	—	—	$	—
Granted	1,003,818	1,003,818	19.39
Vested	—	—	—
Forfeited	—	—	—
Unvested shares at March 31, 2018	1,003,818	1,003,818	$	19.39

No equity awards vested during the three months ended March 31, 2018. There was no equity-based compensation plan for the three months ended March 31, 2017. Fair value of vested awards is determined based on the closing price of the Company’s class A common stock on the date of grant for employee awards, and remeasured each period end based on the closing price of the Company’s class A common stock of such period end for non-employee awards. Equity-based compensation is classified within administrative expense in the consolidated statement of operations.

At March 31, 2018, aggregate unrecognized compensation cost for all unvested equity awards was $18.7 million, which is expected to be recognized over a weighted-average period of 2.9 years.

Stockholders' Equity

3 Months Ended

Mar. 31, 2018

Equity [Abstract]

Stockholders' Equity

Stockholders’ Equity

Authorized Capital

As of March 31, 2018, the Company had the authority to issue up to 1.0 billion shares of stock, at $0.01 par value per share, consisting of 905.0 million shares of Class A common stock, 45.0 million shares of Class B-3 common stock, and 50.0 million shares of preferred stock.

The Company had no shares of preferred stock issued and outstanding as of March 31, 2018.

Dividends

During the three months ended March 31, 2018, the Company declared the following dividends on its common stock:



Declaration Date	Record Date	Payment Date	Per Share
February 26, 2018	March 8, 2018	March 16, 2018	$0.145
March 15, 2018	March 29, 2018	April 10, 2018	$0.145

Stock Repurchase Program

The Company’s board of directors authorized a stock repurchase program (the “Stock Repurchase Program”), under which the Company may repurchase up to $300.0 million of its outstanding Class A common stock until March 31, 2019. Under the Stock Repurchase Program, the Company may repurchase shares in open market purchases, through tender offers or otherwise in accordance with all applicable securities laws and regulations, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended.

As of March 31, 2018, the Company had not repurchased any shares under the Stock Repurchase Program.

Noncontrolling Interests	3 Months Ended
Noncontrolling Interests	Mar. 31, 2018
Noncontrolling Interest [Abstract]
Noncontrolling Interests	Noncontrolling Interests Operating Partnership Noncontrolling interests include the aggregate limited partnership interests in the OP held by RED REIT. Net loss attributable to the noncontrolling interests is based on the limited partners’ ownership percentage of the OP and was $0.1 million for the three months ended March 31, 2018. Investment Entities Noncontrolling interests in investment entities represent third-party equity interests in ventures that are consolidated with the Company’s financial statements. Net income attributable to noncontrolling interests in the investment entities for the three months ended March 31, 2018 was $2.4 million and net income attributable to noncontrolling interests in the investment entities for the three months ended March 31, 2017 was $9.1 million.

Fair Value

3 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value

Determination of Fair Value

The following is a description of the valuation techniques used to measure fair value of assets accounted for at fair value on a recurring basis and the general classification of these instruments pursuant to the fair value hierarchy.

PE Investments

The Company accounts for PE Investments at fair value which is determined based on a valuation model using assumptions for the timing and amount of expected future cash flow for income and realization events for the underlying assets in the funds and discount rate. This fair value measurement is generally based on unobservable inputs and, as such, is classified as Level 3 of the fair value hierarchy. The Company considers cash flow and NAV information provided by general partners of private funds and the implied yields of those funds in valuing its PE Investments. However, the Company has not elected the practical expedient to measure the fair value of its PE Investments using the NAV of the underlying funds.

Real Estate Securities

CRE securities are generally valued using a third-party pricing service or broker quotations. These quotations are not adjusted and are based on observable inputs that can be validated, and as such, are classified as Level 2 of the fair value hierarchy. Certain CRE securities may be valued based on a single broker quote or an internal price which may have less observable pricing, and as such, would be classified as Level 3 of the fair value hierarchy. Management determines the prices are representative of fair value through a review of available data, including observable inputs, recent transactions as well as its knowledge of and experience in the market.

Investing VIEs

As discussed in Note 7, “Real Estate Securities, Available for Sale,” the Company has elected the fair value option for the financial assets and liabilities of the consolidated Investing VIEs. The Investing VIEs are “static,” that is no reinvestment is permitted and there is very limited active management of the underlying assets. The Company is required to determine whether the fair value of the financial assets or the fair value of the financial liabilities of the Investing VIEs are more observable, but in either case, the methodology results in the fair value of the assets of the securitization trusts being equal to the fair value of their liabilities. The Company has determined that the fair value of the liabilities of the securitization trusts are more observable, since market prices for the liabilities are available from a third-party pricing service or are based on quoted prices provided by dealers who make markets in similar financial instruments. The financial assets of the securitization trusts are not readily marketable and their fair value measurement requires information that may be limited in availability.

In determining the fair value of the trusts’ financial liabilities, the dealers will consider contractual cash payments and yields expected by market participants. Dealers also incorporate common market pricing methods, including a spread measurement to the treasury curve or interest rate swap curve as well as underlying characteristics of the particular security including coupon, periodic and life caps, collateral type, rate reset period and seasoning or age of the security. The Company’s collateralized mortgage obligations are classified as Level 2 of the fair value hierarchy, where a third-party pricing service or broker quotations are available, and as Level 3 of the fair value hierarchy, where internal price is utilized which may have less observable pricing. In accordance with ASC 810, Consolidation, the assets of the securitization trusts are an aggregate value derived from the fair value of the trust’s liabilities, and the Company has determined that the valuation of the trust’s assets in their entirety including its retained interests from the securitizations (eliminated in consolidation in accordance with U.S. GAAP) should be classified as Level 3 of the fair value hierarchy.

Fair Value Hierarchy

Financial assets recorded at fair value on a recurring basis are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following table presents financial assets that were accounted for at fair value on a recurring basis as of March 31, 2018 and December 31, 2017 by level within the fair value hierarchy (dollars in thousands):



	March 31, 2018 (Unaudited)								December 31, 2017
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Investments in unconsolidated ventures⁽¹⁾	$	—	$	—	$	257,495	$	257,495	$	—	$	—	$	24,717	$	24,717
Real estate securities, available for sale	—		176,194		—		176,194		—		—		—		—
Mortgage loans held in securitization trusts, at fair value	—		—		3,193,298		3,193,298		—		—		—		—
Liabilities:
Mortgage obligations issued by securitization trusts, at fair value	$	—	$	3,051,315	$	—	$	3,051,315	$	—	$	—	$	—	$	—

_________________________________________


(1)	Represents investments for which the Company elected fair value option.

The following table presents the changes in fair value of financial assets which are measured at fair value on a recurring basis using Level 3 inputs to determine fair value for the three months ended March 31, 2018 and year ended December 31, 2017 (dollars in thousands):



	Three Months Ended March 31, 2018 (Unaudited)						Year Ended December 31, 2017
	PE Investments			Mortgage loans held in securitization trusts⁽¹⁾			PE Investments
Beginning balance	$	24,417		$	—		$	—
Contributions⁽²⁾/purchases	243,786			3,327,199			72,325
Distributions/paydowns	(15,946		)	(111,181		)	(49,344		)
Equity in earnings	6,320			—			6,829
Unrealized loss in earnings	(1,082		)	(22,720		)	(5,393		)
Ending balance	$	257,495		$	3,193,298		$	24,417

_________________________________________


(1)	For the three months ended March 31, 2018, unrealized loss of $22.7 million related to mortgage loans held in securitization trusts, at fair value was offset by unrealized gain of $23.2 million related to mortgage obligations issued by securitization trusts, at fair value.


(2)	Includes initial investments, before distribution and contribution closing statement adjustments, and subsequent contributions, including deferred purchase price fundings.

For the three months ended March 31, 2018 and the year ended December 31, 2017, the Company used a discounted cash flow model to quantify Level 3 fair value measurements on a recurring basis. For the three months ended March 31, 2018 and the year ended December 31, 2017, the key unobservable inputs used in the analysis of PE Investments included discount rates with a range of 11.1% to 20.0% and 11.1% to 12.4%, respectively, and timing and amount of expected future cash flow. For the three months ended March 31, 2018, the key unobservable inputs used in the valuation of mortgage obligations issued by securitization trusts included yields ranging from 9.6% to 14.2% and a weighted average life of 6.2 years. Significant increases or decreases in any one of the inputs described above in isolation may result in significantly different fair value of the financial assets and liabilities using such Level 3 inputs.

For the three months ended March 31, 2018, the Company recorded a net unrealized gain of $0.5 million related to mortgage loans held in and mortgage obligations issued by securitization trusts, at fair value. These amounts, when incurred, are recorded as unrealized gain (loss) on mortgage loans and obligations held in securitization trusts, net in the consolidated statements of operations.

For the three months ended March 31, 2018, the Company recorded an unrealized loss on PE Investments of $1.1 million. These amounts, when incurred, are recorded as equity in earnings of unconsolidated ventures in the consolidated statements of operations.

Fair Value Option

The Company may elect to apply the fair value option of accounting for certain of its financial assets or liabilities due to the nature of the instrument at the time of the initial recognition of the investment. The Company elected the fair value option for PE Investments and eligible financial assets and liabilities of its consolidated Investing VIEs because management believes it is a more useful presentation for such investments. The Company determined recording the PE Investments based on the change in fair value of projected future cash flow from one period to another better represents the underlying economics of the respective investment. As of March 31, 2018 and December 31, 2017, the Company has elected not to apply the fair value option for any other eligible financial assets or liabilities.

Fair Value of Financial Instruments

In addition to the above disclosures regarding financial assets or liabilities which are recorded at fair value, U.S. GAAP requires disclosure of fair value about all financial instruments. The following disclosure of estimated fair value of financial instruments was determined by the Company using available market information and appropriate valuation methodologies. Considerable judgment is necessary to interpret market data and develop estimated fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize on disposition of the financial instruments. The use of different market assumptions and/or estimation methodologies may have a material effect on estimated fair value.

The following table presents the principal amount, carrying value and fair value of certain financial assets and liabilities as of March 31, 2018 and December 31, 2017 (dollars in thousands):



	March 31, 2018 (Unaudited)							December 31, 2017
	Principal Amount			Carrying Value		Fair Value		Principal Amount			Carrying Value		Fair Value
Financial assets:⁽¹⁾
Loans held for investment, net	$	1,805,636	⁽²⁾	$	1,816,218	$	1,814,530	$	1,307,740	⁽²⁾	$	1,300,784	$	1,311,783
Financial liabilities:⁽¹⁾
Securitization bonds payable, net	$	172,145		$	172,113	$	172,113	$	108,794		$	108,679	$	108,974
Mortgage notes payable, net	929,598			924,018		885,756		284,035			280,982		282,333
Master repurchase facilities	602,277			602,277		602,277		—			—		—

_________________________________________


(1)	The fair value of other financial instruments not included in this table is estimated to approximate their carrying value.


(2)	Excludes future funding commitments of $68.3 million and $19.2 million as of March 31, 2018 and December 31, 2017, respectively.

Disclosure about fair value of financial instruments is based on pertinent information available to management as of the reporting date. Although management is not aware of any factors that would significantly affect fair value, such amounts have not been comprehensively revalued for purposes of these consolidated financial statements since that date and current estimates of fair value may differ significantly from the amounts presented herein.

Loans Held for Investment, Net

For loans held for investment, net, fair values were determined: (i) by comparing the current yield to the estimated yield for newly originated loans with similar credit risk or the market yield at which a third party might expect to purchase such investment; or (ii) based on discounted cash flow projections of principal and interest expected to be collected, which includes consideration of the financial standing of the borrower or sponsor as well as operating results of the underlying collateral. These fair value measurements of CRE debt are generally based on unobservable inputs and, as such, are classified as Level 3 of the fair value hierarchy. Carrying values of loans held for investment are presented net of allowance for loan losses, where applicable.

Securitization Bonds Payable, Net

Securitization bonds payable, net are valued using quotations from nationally recognized financial institutions that generally acted as underwriter for the transactions. These quotations are not adjusted and are generally based on observable inputs that can be validated, and as such, are classified as Level 2 of the fair value hierarchy.

Mortgage and Other Notes Payable, Net

For mortgage and other notes payable, net, the Company primarily uses rates currently available with similar terms and remaining maturities to estimate fair value. These measurements are determined using comparable U.S. Treasury rates as of the end of the reporting period. These fair value measurements are based on observable inputs, and as such, are classified as Level 2 of the fair value hierarchy.

Master Repurchase Facilities

The Company has amounts outstanding under Master Repurchase Facilities. The Master Repurchase Facilities bear floating rates of interest. As of the reporting date, the Company believes the carrying value approximates fair value. These fair value measurements are based on observable inputs, and as such, are classified as Level 2 of the fair value hierarchy.

Other

The carrying values of cash, interest receivable, accounts receivable, interest payable, and accounts payable approximate fair value due to their short term nature and credit risk, if any, are negligible.

- Definition

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

Segment Reporting

3 Months Ended

Mar. 31, 2018

Segment Reporting [Abstract]

Segment Reporting

The Company currently conducts its business through the following five segments, which are based on how management reviews and manages its business:


•	Loan Portfolio - Focused on originating, acquiring and asset managing CRE debt investments including first mortgage loans, mezzanine loans, and preferred equity interests as well as participations in such loans. The CRE Debt segment also includes real estate acquired in settlement of loans as well as ADC arrangements accounted for as equity method investments.


•	CRE Debt Securities - Focused on investing in CMBS (including “B-pieces” of a CMBS securitization pool) or CRE CLOs (collateralized by pools of CRE debt instruments).


•	Net Leased Real Estate - Focused on direct investments in commercial real estate with long-term leases to tenants on a net lease basis, where such tenants generally will be responsible for property operating expenses such as insurance, utilities, maintenance capital expenditures and real estate taxes.


•	Other - The other segment includes direct investments in non-core operating real estate such as multi-tenant office and multifamily residential assets as well as PE Investments.


•	Corporate - The corporate segment includes corporate level asset management and other fees, related party and general and administrative expenses.

The Company may also own investments indirectly through a joint venture.

Following the Combination, the following changes were made to the Company’s operating segments:


•	The acquired CRE securities formed the new CRE debt securities segment


•	The net leased real estate of the combined organization is aggregated into the net leased real estate segment


•	All non-core operating real estate and PE Investments of the combined organization is aggregated into the other segment


•	The corporate segment consists of corporate level cash and corresponding interest income, fixed assets, corporate level financing and related interest expense, expense for management fees and cost reimbursement to the Manager, as well as Combination-related transaction costs.

The Company primarily generates revenue from net interest income on the loan and securities portfolios, rental and other income from its net leased, multi-tenant office and multifamily real estate assets, as well as equity in earnings of unconsolidated ventures, including from PE Investments. CRE debt securities include the Company’s investment in the subordinate tranches of the securitization trusts which are eliminated in consolidation. The Company’s income is primarily derived through the difference between revenue and the cost at which the Company is able to finance its investments. The Company may also acquire investments which generate attractive returns without any leverage.

The following tables present segment reporting for the three months ended March 31, 2018 and 2017 (dollars in thousands):



Three Months Ended March 31, 2018	Loan			CRE Debt Securities			Net leased real estate			Other			Corporate⁽¹⁾			Total
Net interest income	$	28,232		$	2,902		$	—		$	—		$	(823	)	$	30,311
Property and other income	2,237			2			12,442			14,204			177			29,062
Management fee expense	—			—			—			—			(8,000		)	(8,000		)
Property operating expense	(1,223		)	—			(4,106		)	(6,390		)	—			(11,719		)
Transaction, investment and servicing expense	(441		)	—			(10		)	(12		)	(30,478		)	(30,941		)
Interest expense on real estate	(223		)	—			(3,498		)	(2,672		)	—			(6,393		)
Depreciation and amortization	(677		)	—			(6,570		)	(11,545		)	—			(18,792		)
Administrative expense	(135		)	84			(1		)	(4		)	(3,172		)	(3,228		)
Unrealized gain on mortgage loans and obligations held in securitization trusts, net	—			(110		)	—			—			607			497
Other gain on investments, net	442			—			23			—			—			465
Income (loss) before equity in earnings of unconsolidated ventures and income taxes	28,212			2,878			(1,720		)	(6,419		)	(41,689		)	(18,738		)
Equity in earnings of unconsolidated ventures	10,550			—			—			5,238			—			15,788
Income tax benefit (expense)	816			—			—			(267		)	—			549
Net income (loss)	$	39,578		$	2,878		$	(1,720	)	$	(1,448	)	$	(41,689	)	$	(2,401	)

_________________________________________

(1)

Includes income earned from the CRE securities purchased at a discount, recognized using the effective interest method had the transaction been recorded as an available for sale security, at amortized cost. During the three months ended March 31, 2018, $0.6 million was attributable to discount accretion income and was eliminated in consolidation in the corporate segment. The corresponding interest expense is recorded in net interest income in the Corporate column.



Three Months Ended March 31, 2017	Loan			Net leased real estate			Other		Corporate			Total
Net interest income	$	29,047		$	—		$	—	$	—		$	29,047
Property and other income	724			4,576			—		—			5,300
Property operating expense	(537		)	(1,074		)	—		—			(1,611		)
Transaction, investment and servicing expense	(614		)	(87		)	—		—			(701		)
Interest expense on real estate	—			(976		)	—		—			(976		)
Depreciation and amortization	(97		)	(2,188		)	—		—			(2,285		)
Administrative expense	(65		)	—			—		(2,947		)	(3,012		)
Income (loss) before equity in earnings (losses) of unconsolidated ventures and income tax benefit (expense)	28,458			251			—		(2,947		)	25,762
Equity in earnings of unconsolidated ventures	4,209			—			1,829		—			6,038
Income tax benefit (expense)	—			—			223		—			223
Net income (loss)	$	32,667		$	251		$	2,052	$	(2,947	)	$	32,023

The following table presents total assets by segment as of March 31, 2018 and December 31, 2017 (dollars in thousands):



Total Assets	Loan⁽¹⁾		CRE Debt Securities		Net leased real estate		Other⁽¹⁾⁽²⁾		Corporate⁽³⁾		Total
March 31, 2018 (Unaudited)	$	2,590,367	$	3,597,300	$	741,861	$	1,148,338	$	43,039	$	8,120,905
December 31, 2017	1,573,714		—		241,271		24,417		—		1,839,402

_________________________________________


(1)	Includes investments in unconsolidated ventures totaling $179.3 million as of December 31, 2017.


(2)	Includes investments in unconsolidated ventures totaling $756.5 million and $24.4 million as of March 31, 2018 and December 31, 2017, respectively.


(3)	Includes cash, unallocated receivables, deferred costs and other assets, net and the elimination of the subordinate tranches of the securitization trusts in consolidation.

Geography

Geography is generally defined as the location in which the income producing assets reside or the location in which income generating services are performed. Long-lived assets comprise real estate, deferred leasing costs and intangible assets, all of which are located in the United States. Geography information on total income, which includes earnings from investments in unconsolidated ventures, is presented as follows (dollars in thousands):



	Three Months Ended March 31,
	2018		2017
Total income by geography:
United States	$	107,815	$	45,590
Other	—		899
Total	$	107,815	$	46,489

Earnings Per Share

3 Months Ended

Mar. 31, 2018

Earnings Per Share [Abstract]

Earnings Per Share

The Company’s net income (loss) and weighted average shares outstanding for the three months ended March 31, 2018 and 2017 consist of the following (dollars in thousands, except per share data):



	Three Months Ended March 31,
	2018			2017
Net income (loss)	$	(2,401	)	$	32,023
Net (income) loss attributable to noncontrolling interests:
Investment Entities	(2,370		)	(9,137		)
Operating Partnership⁽¹⁾	57			(2,075		)
Net income (loss) attributable to Colony NorthStar Credit Real Estate, Inc. common stockholders	$	(4,714	)	$	20,811

Numerator:
Net (income) loss allocated to participating securities (nonvested shares)	(146		)	—
Net income (loss) attributable to common stockholders	$	(4,860	)	$	20,811

Denominator:
Weighted average shares outstanding⁽²⁾	98,662			44,399

Net income (loss) per common share - basic and diluted ⁽³⁾	$	(0.05	)	$	0.47

_________________________________________


(1)	For earnings per share for the three months ended March 31, 2017, the Company allocated Company OP’s share of net income as if Company OP held 3,075,623 CLNC OP Units during the period for comparative purposes. The CLNC OP units were not issued until January 31, 2018.


(2)	For earnings per share, the Company assumes 44.4 million shares of class B-3 common stock were outstanding prior to January 31, 2018 to reflect the standalone pre-merger financial information of the CLNS Investment Entities, the Company’s predecessor for accounting purposes.


(3)	Excludes 3,075,623 CLNC OP Units, which are redeemable for cash, or at the Company’s option, shares of Class A common stock on a one-for-one basis, and therefore would not be dilutive.

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2018
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Dividends On April 16, 2018, the Company’s Board of Directors declared a monthly cash dividend of $0.145 per share of Class A common stock and Class B-3 common stock for the month ended April 30, 2018. The common stock dividend was paid on May 10, 2018 to stockholders of record on April 30, 2018. These distributions represent an annualized dividend of $1.74 per share of Class A common stock and Class B-3 common stock. On May 3, 2018, the Company’s Board of Directors declared a monthly cash dividend of $0.145 per share of Class A common stock and Class B-3 common stock for the month ended May 31, 2018. The common stock dividend will be paid on June 11, 2018 to stockholders of record on May 31, 2018. These distributions represent an annualized dividend of $1.74 per share of Class A common stock and Class B-3 common stock. New Investments Loans Held for Investment In April 2018, the Company originated a $36.5 million (including $1.5 million of future funding commitments) first mortgage loan, secured by a multifamily property located in Oxnard, CA. The loan bears interest at 7.5% plus LIBOR at origination. The rate will be automatically reduced to 5.2% plus LIBOR after certain conditions are satisfied. In May 2018, the Company acquired an $89.1 million (at par) preferred equity investment in an investment vehicle that owns a seven-property office portfolio located in the New York metropolitan area from an affiliate of the Company’s Manager. The sponsor has invested and maintained approximately $87.0 million in contributions to the investment vehicle. The position includes a diversified tenant mix with minimal turnover and concentration, and provides seniority to the sponsor’s cash flow, with interest reserves and replenishment requirements. The acquisition was approved by the audit committee of Company’s board of directors. Real Estate Securities In April 2018, the Company purchased two CMBS investments with an aggregate face value of $18.1 million at an aggregate discount to par of $4.0 million, or 21.8%. Master Repurchase Agreements On April 20, 2018, the Company consolidated two previous master repurchase agreements and entered into a restated and amended three-year master repurchase agreement with a major financial institution. This agreement provides up to $500.0 million to finance CMBS. On April 23, 2018, the Company entered into a three-year master repurchase agreement with a major financial institution through its indirectly wholly owned subsidiaries. This agreement provides up to $300.0 million to finance the Company’s lending activities. Assets pledged as collateral under this agreement are limited to first mortgage loans, senior loan participations and other commercial mortgage loan debt instruments secured by commercial real estate. On April 26, 2018, the Company entered into a three-year master repurchase agreement with a major financial institution through a subsidiary. This agreement provides up to $500.0 million to finance the Company’s lending activities. Assets pledged as collateral under this agreement are limited to first mortgage loans, mezzanine loans, senior loan participations and other commercial mortgage loan debt instruments secured by commercial real estate. The Company has the option to extend these agreements subject to a number of conditions. These agreements will act as revolving credit facilities that can be paid down and subsequently re-drawn subject to the satisfaction of customary conditions precedent. Other In April 2018, two separate hospitality loans with total outstanding principal balances of $117.0 million matured but failed to meet extension tests per the respective loan agreements and are in default as of the date of this filing. The loans are current with regards to their interest payments. The Company is in discussions with the borrowers to resolve the matters.

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Basis of Presentation

The Combination

Formation of Colony NorthStar

Principles of Consolidation

Variable Interest Entities

Consolidated VIEs

Investing VIEs

Unconsolidated VIEs

Voting Interest Entities

Noncontrolling Interests

Noncontrolling Interests in the Operating Partnership -

Use of Estimates

Comprehensive Income (Loss)

Fair Value Measurement

Level 1-Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 3-At least one assumption or input is unobservable and it is significant to the fair value measurement, requiring significant management judgment or estimate.

Fair Value Option

Business Combinations

Net cash paid to acquire a business or assets is classified as investing activities on the accompanying statements of cash flows.

Cash and Cash Equivalents

Restricted Cash

Restricted cash consists primarily of borrower escrow deposits, tenant escrow deposits and real estate capital expenditure reserves.

Loans Held for Investment

Loans Held for Investment (other than Purchased Credit-Impaired Loans)

Loans Held for Sale

Purchased Credit-Impaired (“PCI”) Loans

Acquisition, Development and Construction (“ADC”) Loan Arrangements

Operating Real Estate

Real Estate Held for Investment

Real estate held for investment are carried at cost less accumulated depreciation.

Depreciation-Real estate held for investment, other than land, are depreciated on a straight-line basis over the estimated useful lives of the assets, as follows:



Real Estate Assets		Term
Building (fee interest)		7 to 53 years
Building leasehold interests		Lesser of remaining term of the lease or remaining life of the building
Building improvements		Lesser of the useful life or remaining life of the building
Land improvements		6 to 12 years
Tenant improvements		Lesser of the useful life or remaining term of the lease
Furniture, fixtures and equipment		7 to 8 years

Real Estate Held for Sale

Foreclosed Properties

Real Estate Securities

Impairment

Investments in Unconsolidated Ventures

A noncontrolling, unconsolidated ownership interest in an entity may be accounted for using the equity method, cost method or under the fair value option, if elected.

Identified Intangibles

Identifiable Intangibles

Transfers of Financial Assets

Financing Costs

Revenue Recognition

Property Operating Income

Property operating income includes the following:

Real Estate Securities

Foreign Currency

Disclosures of non-US dollar amounts to be recorded in the future are translated using exchange rates in effect at the balance sheet date.

Equity Based Compensation

Equity-Based Compensation

Earnings Per Share

Income Taxes

The Company may also be subject to certain state, local and franchise taxes. Under certain circumstances, U.S. federal income and excise taxes may be due on its undistributed taxable income.

Recent Accounting Pronouncements

Evaluation of the impact of this new guidance to the Company is ongoing.

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Schedule of Classification, Carrying Value and Maximum Exposure of VIEs

The following table presents the Company’s classification, carrying value and maximum exposure of unconsolidated VIEs as of March 31, 2018 (dollars in thousands):



	Carrying Value		Maximum Exposure to Loss
Real estate securities, available for sale	$	176,194	$	176,194
Investments in unconsolidated ventures	379,018		379,018
Loans held for investment, net	340,448		342,600
Total assets	$	895,660	$	897,812

The following table presents the assets and liabilities recorded on the consolidated balance sheets attributable to the securitization trust as of March 31, 2018 (dollars in thousands):



	March 31, 2018
Assets
Mortgage loans held in a securitization trust, at fair value	$	3,193,298
Receivables, net	13,337
Total assets	$	3,206,635
Liabilities
Mortgage obligations issued by a securitization trust, at fair value	$	3,051,315
Accrued and other liabilities	12,490
Total liabilities	$	3,063,805



	Three Months Ended March 31, 2018
Statement of Operations
Interest income on mortgage loans held in securitization trusts	$	25,865
Interest expense on mortgage obligations issued by securitization trusts	(24,277		)
Net interest income	1,588
Administrative expenses	99
Unrealized gain (loss) on mortgage loans and obligations held in securitization trusts, net	497
Net income attributable to Colony NorthStar Credit Real Estate, Inc. common stockholders	$	2,184

Schedule of Operating Real Estate Estimated Useful Lives

Depreciation-Real estate held for investment, other than land, are depreciated on a straight-line basis over the estimated useful lives of the assets, as follows:



Real Estate Assets		Term
Building (fee interest)		7 to 53 years
Building leasehold interests		Lesser of remaining term of the lease or remaining life of the building
Building improvements		Lesser of the useful life or remaining life of the building
Land improvements		6 to 12 years
Tenant improvements		Lesser of the useful life or remaining term of the lease
Furniture, fixtures and equipment		7 to 8 years

Schedule of Deconsolidation of CLNS Investment Entities

The following table presents the deconsolidation of the assets and liabilities of certain of the CLNS Investment Entities, and accounting for the Company’s interests in these CLNS Investment Entities as equity method investments as of the Closing Date (dollars in thousands):



	As of the Closing Date
Assets
Cash and cash equivalents	$	(11,408	)
Restricted cash	(14,704		)
Loans held for investment, net	(553,678		)
Investments in unconsolidated ventures	127,062
Receivables, net	(4,344		)
Other assets	(114		)
Total assets	$	(457,186	)
Liabilities
Mortgage and other notes payable, net	$	(128,709	)
Accrued and other liabilities	(640		)
Escrow deposits payable	(14,704		)
Total liabilities	(144,053		)

Stockholders’ equity	(313,133		)
Total liabilities and equity	$	(457,186	)



	Three Months Ended March 31,⁽¹⁾
	2018		2017
Total revenues	$	19,938	$	7,803
Net income (loss)⁽²⁾	10,107		6,937

_________________________________________


(1)	Includes summarized financial information for PE Investments on a one quarter lag, which is the most recent financial information available from the underlying funds.


(2)	Includes net investment income and unrealized and realized gains and losses for PE Investments.

The Company’s investments accounted for under the equity method are summarized below (dollars in thousands):

Ownership Interest⁽¹⁾ at March 31, 2018

Carrying Value

Investments

Description

March 31, 2018 (Unaudited)

December 31, 2017

ADC investments

Various⁽²⁾

320,991

179,303

Other investment ventures

Interests in 10 investments, each with less than $60.4 million carrying value at March 31, 2018

Various

177,982

—

_________________________________________

(1)


(2)	The Company owns varying levels of stated equity interests in certain ADC investments, as well as profit participation interests in real estate ventures without a stated ownership interest in other ADC investments.

- Definition

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

Business Combinations (Tables)

3 Months Ended

Mar. 31, 2018

Business Combinations [Abstract]

Schedule of Fair Value of the Merger Consideration

Fair value of the merger consideration was determined as follows (dollars in thousands, except exchange ratio and price per share):



	NorthStar I		NorthStar II		Total
Outstanding shares of common stock at January 31, 2018 ⁽¹⁾	119,333		114,943
Exchange ratio ⁽²⁾	0.3532		0.3511
Shares of Class A common stock issued in the mergers ⁽³⁾	42,149		40,356		82,505
Fair value consideration per share ⁽⁴⁾	$	24.50	$	24.50	$	24.50
Fair value of NorthStar I and NorthStar II consideration	$	1,032,651	$	988,722	$	2,021,373

_________________________________________


(1)	Includes 21,000 and 25,000 shares of common stock of NorthStar I and NorthStar II equity awards, respectively, that vested in connection with the consummation of the Combination.


(2)	Represents the pre-determined exchange ratio of 0.3532 NorthStar I shares and 0.3511 NorthStar II shares per one share of the Company’s Class A common stock.


(3)	Includes the issuance of fractional shares, aggregating to approximately 21,000 shares, for which holders received cash in lieu of the fractional shares.


(4)	Represents the estimated per share fair value of the Company at the Closing Date of the Combination.

Schedule of Fair Values Assigned to the Assets Acquired, Liabilities Assumed and Noncontrolling Interest

Preliminary fair values assigned to the assets acquired, liabilities assumed and noncontrolling interests of NorthStar I and NorthStar II as of the Closing Date were as follows (dollars in thousands):



	January 31, 2018
	NorthStar I		NorthStar II		Total
Merger consideration	$	1,032,651	$	988,722	$	2,021,373
Allocation of merger consideration:
Assets acquired
Cash and cash equivalents	$	130,197	$	51,360	$	181,557
Restricted cash	30,564		61,313		91,877
Loans held for investment	521,462		728,271		1,249,733
Real estate securities, available for sale, at fair value	100,731		64,793		165,524
Real estate, net	790,996		492,317		1,283,313
Investments in unconsolidated ventures	67,899		375,694		443,593
Receivables, net	12,363		11,479		23,842
Deferred leasing costs and intangible assets, net	74,243		37,090		111,333
Other assets	16,407		21,668		38,075
Mortgage loans held in securitization trusts, at fair value	1,894,404		1,432,795		3,327,199
Total assets acquired	3,639,266		3,276,780		6,916,046
Liabilities assumed
Securitization bonds payable, net	—		80,825		80,825
Mortgage and other notes payable, net	399,131		382,485		781,616
Credit facilities	293,340		355,529		648,869
Due to related party	4,533		1,842		6,375
Accrued and other liabilities	21,640		18,219		39,859
Intangible liabilities, net	17,931		1,808		19,739
Escrow deposits payable	12,994		36,362		49,356
Mortgage obligations issued by securitization trusts, at fair value	1,784,223		1,401,491		3,185,714
Total liabilities assumed	2,533,792		2,278,561		4,812,353
Noncontrolling interests	72,823		9,497		82,320
Fair value of net assets acquired	$	1,032,651	$	988,722	$	2,021,373

Schedule of Results of Operations and Pro Forma Information

For the three months ended March 31, 2018, the Company’s results of operations included contributions from the acquired business of NorthStar I and NorthStar II as follows (dollars in thousands):



	February 1, 2018 to March 31, 2018
	NorthStar I			NorthStar II		Total
Total revenues	$	37,312		$	39,207	$	76,519

Net income (loss) attributable to common stockholders	(2,175		)	8,626		6,451



	Three Months Ended March 31,
	2018		2017
Pro forma:
Total revenues	$	136,038	$	123,426
Net income (loss) attributable to Colony NorthStar Credit Real Estate, Inc.	37,628		49,196
Net income (loss) attributable to common stockholders	35,229		39,852
Earnings (loss) per common share:
Basic	$	0.27	$	0.31
Diluted	$	0.27	$	0.31

Loans Receivable (Tables)

3 Months Ended

Mar. 31, 2018

Receivables [Abstract]

Loans Held for Investment, net

The following table provides a summary of the Company’s loans held for investment, net (dollars in thousands):



	March 31, 2018 (Unaudited)								December 31, 2017
	Unpaid Principal Balance		Carrying Value			Weighted Average Coupon		Weighted Average Maturity in Years	Unpaid Principal Balance		Carrying Value			Weighted Average Coupon		Weighted Average Maturity in Years
Non-PCI Loans
Fixed rate
Mortgage loans	$	16,240	$	16,159		10.5	%	6.0	$	471,669	$	463,748		8.3	%	2.0
Mezzanine loans	116,231		116,152			13.1	%	5.1	141,931		141,828			13.2	%	3.2
	132,471		132,311						613,600		605,576
Variable rate
Mortgage loans	$	1,039,007	$	1,046,581		6.6	%	3.1	$	260,366	$	260,932		8.1	%	2.3
Securitized loans⁽¹⁾	497,849		501,055			6.9	%	0.9	377,939		379,670			6.7	%	0.3
Mezzanine loans	109,821		110,014			10.1	%	3.4	34,391		34,279			9.8	%	1.3
Preferred equity interests	26,488		26,774			14.2	%	1.7	—		—			—		—
	1,673,165		1,684,424						672,696		674,881
	1,805,636		1,816,735						1,286,296		1,280,457
PCI Loans
Mortgage loans	—		—						21,444		20,844

Allowance for loan losses	NA		(517		)				NA		(517		)
Loans held for investment, net	$	1,805,636	$	1,816,218					$	1,307,740	$	1,300,784

_________________________________________


(1)	Represents loans transferred into securitization trusts that are consolidated by the Company.

Schedule of Mortgage Loans on Real Estate

Activity relating to the Company’s loans held for investments, net was as follows (dollars in thousands):



	Carrying Value
Balance at January 1, 2018	$	1,300,784
Loans held for investment acquired in the Combination (refer to Note 3)	1,249,733
Deconsolidation of investment entities⁽¹⁾	(553,678		)
Acquisitions/originations/additional funding	5,059
Loan maturities/principal repayments	(136,913		)
Combination adjustment⁽²⁾	(50,314		)
Discount accretion/premium amortization	1,017
Capitalized interest	530
Balance at March 31, 2018	$	1,816,218

_________________________________________


(1)	Represents loans held for investment, net which were deconsolidated as a result of the Combination. Refer to Note 2, “Summary of Significant Accounting Policies,” for further detail.


(2)	Represents a loan held for investment, net that was previously sold by the CLNS Investment Entities to NorthStar I and was treated as a secured financing by the CLNS Investment Entities. This loan was eliminated as a result of the Combination.

Aging Summary of Non-PCI Loans

The following table provides an aging summary of non-PCI loans held for investment at carrying values before allowance for loan losses (dollars in thousands):



	Current or Less Than 30 Days Past Due		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due / Nonaccrual ⁽¹⁾		Total Non-PCI Loans
March 31, 2018 (Unaudited)	$	1,384,599	$	—	$	—	$	432,136	$	1,816,735
December 31, 2017	1,101,522		144,241		7,929		26,765		1,280,457

_________________________________________


(1)	Loans held for investment with a total carrying value of $42.2 million which were 90 days or more past due repaid in full subsequent to March 31, 2018.

Non-PCI Impaired Loans

The following table presents non-PCI impaired loans at the respective reporting dates (dollars in thousands):



	Unpaid Principal Balance		Gross Carrying Value
	Unpaid Principal Balance		With Allowance for Loan Losses		Without Allowance for Loan Losses		Total		Allowance for Loan Losses
March 31, 2018 (Unaudited)	$	430,053	$	42,176	$	389,960	$	432,136	$	517
December 31, 2017	215,997		42,176		175,090		217,266		517

The average carrying value and interest income recognized on non-PCI impaired loans were as follows (dollars in thousands):



	Three Months Ended March 31,
	2018		2017
Average carrying value before allowance for loan losses	$	385,067	$	40,066
Interest income	3,758		756

Changes in Accretable Yield for the PCI Loans

Changes in accretable yield of PCI loans were as follows (dollars in thousands):



	Three Months Ended March 31,
	2018			2017
Beginning accretable yield	$	726		$	5,929
Changes in accretable yield⁽¹⁾	(605		)	(572		)
Accretion recognized in earnings	(121		)	(1,522		)
Ending accretable yield	$	—		$	3,835

_________________________________________


(1)	Change in accretable yield during the three months ended March 31, 2018 is a result of the deconsolidation of certain CLNS Contributed Portfolio investments.

Allowance for Loan Losses

Changes in allowance for loan losses on non-PCI loans are presented below (dollars in thousands):



	Three Months Ended March 31,
	2018			2017
Allowance for loan losses at beginning of period	$	(517	)	$	(3,386	)
Provision for loan losses	—			—
Charge-off	—			3,210
Allowance for loan losses at end of period	$	(517	)	$	(176	)

Investments in Unconsolidated Ventures (Tables)

3 Months Ended

Mar. 31, 2018

Equity Method Investments and Joint Ventures [Abstract]

Investments in Unconsolidated Ventures

The Company’s investments in unconsolidated ventures represent noncontrolling equity interests in various entities, as follows (dollars in thousands):



	March 31, 2018 (Unaudited)		December 31, 2017
Equity method investments
Investment ventures	$	498,973	$	179,303
	498,973		179,303
Investments under fair value option
Private funds	257,495		24,417
	$	756,468	$	203,720

Summary of Equity Method Investments



	As of the Closing Date
Assets
Cash and cash equivalents	$	(11,408	)
Restricted cash	(14,704		)
Loans held for investment, net	(553,678		)
Investments in unconsolidated ventures	127,062
Receivables, net	(4,344		)
Other assets	(114		)
Total assets	$	(457,186	)
Liabilities
Mortgage and other notes payable, net	$	(128,709	)
Accrued and other liabilities	(640		)
Escrow deposits payable	(14,704		)
Total liabilities	(144,053		)

Stockholders’ equity	(313,133		)
Total liabilities and equity	$	(457,186	)



	Three Months Ended March 31,⁽¹⁾
	2018		2017
Total revenues	$	19,938	$	7,803
Net income (loss)⁽²⁾	10,107		6,937

_________________________________________


(1)	Includes summarized financial information for PE Investments on a one quarter lag, which is the most recent financial information available from the underlying funds.


(2)	Includes net investment income and unrealized and realized gains and losses for PE Investments.

The Company’s investments accounted for under the equity method are summarized below (dollars in thousands):

Ownership Interest⁽¹⁾ at March 31, 2018

Carrying Value

Investments

Description

March 31, 2018 (Unaudited)

December 31, 2017

ADC investments

Various⁽²⁾

320,991

179,303

Other investment ventures

Interests in 10 investments, each with less than $60.4 million carrying value at March 31, 2018

Various

177,982

—

_________________________________________

(1)


(2)	The Company owns varying levels of stated equity interests in certain ADC investments, as well as profit participation interests in real estate ventures without a stated ownership interest in other ADC investments.

Real Estate, net (Tables)

3 Months Ended

Mar. 31, 2018

Real Estate [Abstract]

Schedule of Operating Real Estate Properties

The following table presents the Company’s net lease portfolio, net, as of March 31, 2018 and December 31, 2017 (dollars in thousands):



	March 31, 2018 (Unaudited)			December 31, 2017
Land and improvements	$	102,764		$	25,262
Buildings, building leaseholds, and improvements	575,589			178,109
Tenant improvements	8,901			2,316
Construction-in-progress	23			21
Subtotal	$	687,277		$	205,708
Less: Accumulated depreciation	(10,294		)	(5,516		)
Net lease portfolio, net	$	676,983		$	200,192

The following table presents the Company’s other portfolio, net, as of March 31, 2018 and December 31, 2017 (dollars in thousands):



	March 31, 2018 (Unaudited)			December 31, 2017
Land and improvements	$	134,675		$	667
Buildings, building leaseholds, and improvements	643,527			18,477
Tenant improvements	28,641			36
Furniture, fixtures and equipment	15,526			680
Construction-in-progress	500			—
Subtotal	$	822,869		$	19,860
Less: Accumulated depreciation	(4,756		)	(312		)
Other portfolio, net	$	818,113		$	19,548

Schedule of Future Minimum Rental Income

The following table presents approximate future minimum rental income under non-cancellable operating leases to be received over the next five years and thereafter as of March 31, 2018 (dollars in thousands):



Remainder of 2018	$	66,776
2019	83,587
2020	74,400
2021	62,095
2022	50,667
2023 and thereafter	94,018
Total	$	431,543

Schedule of Future Minimum Rental Payments

At March 31, 2018, future minimum rental payments, excluding contingent rents, on noncancelable ground leases on real estate were as follows (dollars in thousands):



Remainder of 2018	$	2,115
2019	2,821
2020	2,812
2021	2,720
2022	1,798
2023 and thereafter	2,891
Total	$	15,157

Real Estate Securities, Available for Sale (Tables)

3 Months Ended

Mar. 31, 2018

Investments, Debt and Equity Securities [Abstract]

Schedule of the CMBS Investments

The following table presents CMBS investments as of March 31, 2018 (dollars in thousands):



																Weighted Average
		Principal Amount⁽¹⁾		Total Discount			Amortized Cost		Cumulative Unrealized on Investments					Fair Value		Coupon⁽³⁾		Unleveraged Current Yield
As of Date:	Count	Principal Amount⁽¹⁾		Total Discount			Amortized Cost		Gain		(Loss)			Fair Value		Coupon⁽³⁾		Unleveraged Current Yield
March 31, 2018⁽²⁾	32	$	234,357	$	(56,315	)	$	178,042	$	432	$	(2,280	)	$	176,194	3.15	%	7.36	%

_________________________________________


(1)	Certain CRE securities serve as collateral for financing transactions including carrying value of $139.6 million for the CMBS Credit Facilities (refer to Note 10). The remainder is unleveraged.


(2)	Includes a CRE security with an underlying loan that was non-performing at acquisition. The CRE security was acquired from NorthStar II for $31.3 million, net of a $16.9 million discount. As of March 31, 2018, the non-accretable amount of total cash flows was $4.9 million.


(3)	All CMBS are fixed rate.

Schedule of Classification, Carrying Value and Maximum Exposure of VIEs

The following table presents the Company’s classification, carrying value and maximum exposure of unconsolidated VIEs as of March 31, 2018 (dollars in thousands):



	Carrying Value		Maximum Exposure to Loss
Real estate securities, available for sale	$	176,194	$	176,194
Investments in unconsolidated ventures	379,018		379,018
Loans held for investment, net	340,448		342,600
Total assets	$	895,660	$	897,812

The following table presents the assets and liabilities recorded on the consolidated balance sheets attributable to the securitization trust as of March 31, 2018 (dollars in thousands):



	March 31, 2018
Assets
Mortgage loans held in a securitization trust, at fair value	$	3,193,298
Receivables, net	13,337
Total assets	$	3,206,635
Liabilities
Mortgage obligations issued by a securitization trust, at fair value	$	3,051,315
Accrued and other liabilities	12,490
Total liabilities	$	3,063,805



	Three Months Ended March 31, 2018
Statement of Operations
Interest income on mortgage loans held in securitization trusts	$	25,865
Interest expense on mortgage obligations issued by securitization trusts	(24,277		)
Net interest income	1,588
Administrative expenses	99
Unrealized gain (loss) on mortgage loans and obligations held in securitization trusts, net	497
Net income attributable to Colony NorthStar Credit Real Estate, Inc. common stockholders	$	2,184

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References + Details

- Definition

+ References + Details

Deferred Leasing Costs and Other Intangibles (Tables)

3 Months Ended

Mar. 31, 2018

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets

The Company’s deferred leasing costs, other intangible assets and intangible liabilities at March 31, 2018 and December 31, 2017 are as follows (dollars in thousands):



	March 31, 2018 (Unaudited)
	Carrying Amount		Accumulated Amortization			Net Carrying Amount
Deferred Leasing Costs and Intangible Assets
In-place lease values	$	77,303	$	(11,203	)	$	66,100
Above-market lease values	20,027		(1,190		)	18,837
Below-market ground lease obligations	52		(10		)	42
Deferred leasing costs	29,940		(1,680		)	28,260
	$	127,322	$	(14,083	)	$	113,239
Intangible Liabilities
Below-market lease values	$	20,453	$	(816	)	$	19,637



	December 31, 2017
	Carrying Amount		Accumulated Amortization			Net Carrying Amount
Deferred Leasing Costs and Intangible Assets
In-place lease values	$	9,214	$	(2,657	)	$	6,557
Above-market lease values	1,682		(283		)	1,399
Below-market ground lease obligations	52		(8		)	44
Deferred leasing costs	3,671		(657		)	3,014
	$	14,619	$	(3,605	)	$	11,014
Intangible Liabilities
Below-market lease values	$	51	$	(15	)	$	36

Deferred Costs, Capitalized, Prepaid, and Other Assets

The Company’s deferred leasing costs, other intangible assets and intangible liabilities at March 31, 2018 and December 31, 2017 are as follows (dollars in thousands):



	March 31, 2018 (Unaudited)
	Carrying Amount		Accumulated Amortization			Net Carrying Amount
Deferred Leasing Costs and Intangible Assets
In-place lease values	$	77,303	$	(11,203	)	$	66,100
Above-market lease values	20,027		(1,190		)	18,837
Below-market ground lease obligations	52		(10		)	42
Deferred leasing costs	29,940		(1,680		)	28,260
	$	127,322	$	(14,083	)	$	113,239
Intangible Liabilities
Below-market lease values	$	20,453	$	(816	)	$	19,637



	December 31, 2017
	Carrying Amount		Accumulated Amortization			Net Carrying Amount
Deferred Leasing Costs and Intangible Assets
In-place lease values	$	9,214	$	(2,657	)	$	6,557
Above-market lease values	1,682		(283		)	1,399
Below-market ground lease obligations	52		(8		)	44
Deferred leasing costs	3,671		(657		)	3,014
	$	14,619	$	(3,605	)	$	11,014
Intangible Liabilities
Below-market lease values	$	51	$	(15	)	$	36

Schedule of Deferred Costs and Other Intangible Assets and Liabilities

The following table summarizes the amortization of deferred leasing costs, intangible assets and intangible liabilities for the three months ended March 31, 2018 and 2017 (dollars in thousands):



	Three Months Ended March 31,
	2018			2017
Above-market lease values	$	(907	)	$	(65	)
Below-market lease values	801			3
Net decrease to rental income	$	(106	)	$	(62	)

Below-market ground lease obligations	$	2		$	2
Increase to ground rent expense	$	2		$	2

In-place lease values	$	8,546		$	812
Deferred leasing costs	1,023			160
Amortization expense	$	9,569		$	972

Schedule of Future Amortization Expense




	Remainder of 2018			2019			2020			2021			2022			2023 and thereafter			Total
Above-market lease values	$	3,386		$	4,317		$	3,252		$	2,340		$	1,841		$	3,701		$	18,837
Below-market lease values	(3,467		)	(4,566		)	(2,527		)	(1,895		)	(1,732		)	(5,450		)	(19,637		)
Decrease to rental income	$	(81	)	$	(249	)	$	725		$	445		$	109		$	(1,749	)	$	(800	)

Below-market ground lease obligations	$	6		$	8		$	8		$	8		$	8		$	4		$	42
Increase to property operating expense	$	6		$	8		$	8		$	8		$	8		$	4		$	42

In-place lease values	$	18,374		$	16,048		$	10,565		$	7,256		$	5,485		$	8,372		$	66,100
Deferred leasing costs	5,285			6,248			4,958			3,763			2,895			5,111			28,260
Amortization expense	$	23,659		$	22,296		$	15,523		$	11,019		$	8,380		$	13,483		$	94,360

Other Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Other Assets

The following table presents a summary of other assets as of March 31, 2018 and December 31, 2017 (dollars in thousands):



	March 31, 2018 (Unaudited)		December 31, 2017
Other assets:
Prepaid taxes and deferred tax assets	$	49,484	$	1,050
Deferred financing costs, net - credit facilities	3,930		—
Prepaid expenses	3,556		360
Derivative asset	28		117
Total	$	56,998	$	1,527

Summary of Other Liabilities

The following table presents a summary of accrued and other liabilities as of March 31, 2018 and December 31, 2017 (dollars in thousands):



	March 31, 2018 (Unaudited)		December 31, 2017
Accrued and other liabilities:
Accounts payable, accrued expenses and other liabilities	$	21,286	$	3,532
Interest payable	17,070		924
Prepaid rent and unearned revenue	6,164		481
Tenant security deposits	3,132		118
Current and deferred tax liability	1,020		120
Derivative liability	1,224		—
Total	$	49,896	$	5,175

Debt (Tables)

3 Months Ended

Mar. 31, 2018

Debt Disclosure [Abstract]

Summary of Debt

The following table presents debt as of March 31, 2018 and December 31, 2017 (dollars in thousands):

March 31, 2018 (Unaudited)

December 31, 2017

Capacity ($)

Recourse vs.
Non-Recourse⁽¹⁾

Final
Maturity

Contractual
Interest Rate

Principal
Amount⁽²⁾

Carrying
Value⁽²⁾

Principal
Amount⁽²⁾

Carrying
Value⁽²⁾

Bank credit facility

400,000

Recourse

Feb-23⁽³⁾

LIBOR + 2.25%

—

Securitization bonds payable, net



							March 31, 2018 (Unaudited)		December 31, 2017
	Capacity ($)		Recourse vs. Non-Recourse⁽¹⁾	Final Maturity	Contractual Interest Rate		Principal Amount⁽²⁾	Carrying Value⁽²⁾	Principal Amount⁽²⁾	Carrying Value⁽²⁾
2014 FL1⁽⁴⁾			Non-recourse	Apr-31	LIBOR + 3.24%		27,119	27,119	27,119	27,004
2014 FL2⁽⁴⁾			Non-recourse	Nov-31	LIBOR + 3.65%		47,580	47,560	55,430	55,430
2015 FL3⁽⁴⁾⁽⁵⁾			Non-recourse	Sep-32	LIBOR + 4.50%		16,621	16,609	26,245	26,245
Securitization 2016-1			Non-recourse	Sep-31	LIBOR + 2.74%		80,825	80,825	—	—
Subtotal securitization bonds payable, net							172,145	172,113	108,794	108,679

Mortgage and other notes payable, net
Net lease 1			Non-recourse	Oct-27	4.45%		24,955	24,955	25,074	25,022
Net lease 2			Non-recourse	Nov-26	4.45%		3,529	3,413	3,544	3,425
Net lease 3			Non-recourse	Nov-26	4.45%		7,615	7,364	7,647	7,390
Net lease 4			Non-recourse	Jun-21	4.00%		13,057	12,877	13,133	12,939
Net lease 5			Non-recourse	Jul-23	LIBOR + 2.15%		2,383	2,320	2,482	2,416
Net lease 6			Non-recourse	Aug-26	4.08%		32,600	32,245	32,600	32,234
Net lease 7⁽⁶⁾			Non-recourse	Nov-26	4.45%		19,158	18,529	19,241	18,593
Net lease 8			Non-recourse	Mar-28	4.38%		12,585	12,029	—	—
Net lease 9			Non-recourse	Apr-21	LIBOR + 2.20%		71,890	71,830	—	—
Net lease 10			Non-recourse	Jul-25	4.31%		250,000	246,124	—	—
Hotel development loan⁽⁷⁾			Non-recourse	Oct-19	LIBOR + 3.50%		—	—	130,000	128,649
Hotel A-Note⁽⁸⁾			Non-recourse	May-23	LIBOR + 1.60%		—	—	50,314	50,314
Multifamily 1			Non-recourse	Dec-23	4.84%		43,500	44,086	—	—
Multifamily 2			Non-recourse	Dec-23	4.94%		43,000	43,578	—	—
Multifamily 3			Non-recourse	Jan-24	5.15%		16,000	16,663
Multifamily 4⁽⁹⁾			Non-recourse	Dec-20	5.27%		12,135	12,502
Multifamily 5			Non-recourse	Nov-26	3.98%		24,606	23,708
Office 1			Non-recourse	Oct-24	4.47%		108,850	109,921	—	—
Office 2			Non-recourse	Jan-25	4.30%		77,381	76,449	—	—
Office 3			Non-recourse	Apr-23	LIBOR + 3.99%		29,800	28,217	—	—
Multi-tenant office			Non-recourse	Aug-20⁽¹⁰⁾	LIBOR + 1.78%		96,143	96,797	—	—
Other notes payable			Limited recourse⁽¹¹⁾	Dec-20⁽¹²⁾	LIBOR + 2.48%		40,411	40,411	—	—
Subtotal mortgage and other notes payable, net							929,598	924,018	284,035	280,982

Master repurchase facilities
Bank 1 facility 1	$	150,000	Limited Recourse⁽¹³⁾	Oct-21⁽¹⁴⁾	LIBOR + 2.35%	(15)	42,840	42,840	—	—
Bank 1 facility 2	150,000		Limited Recourse⁽¹³⁾	Oct-19⁽¹⁶⁾	LIBOR + 2.43%	(15)	48,750	48,750	—	—
Bank 2 facility 1	200,000		Limited Recourse⁽¹⁷⁾	Jul-18	NA		—	—	—	—
Bank 2 facility 2	200,000		Limited Recourse⁽¹⁷⁾	Jul-19⁽¹⁸⁾	LIBOR + 2.35%	(15)	26,742	26,742	—	—
Bank 3 facility 1	200,000		Limited Recourse⁽¹⁹⁾	(20)	LIBOR + 2.37%	(15)	179,994	179,994	—	—
Bank 3 facility 2	300,000		Limited Recourse⁽¹⁹⁾	(21)	LIBOR + 2.41%	(15)	202,934	202,934	—	—
Subtotal master repurchase facilities	$	1,200,000					501,260	501,260	—	—

CMBS credit facilities
Bank 3 facility			Recourse	(22)	NA		—	—	—	—
Bank 4 facility			Recourse	(22)	NA		—	—	—	—
Bank 5 facility 2			Recourse	(22)	NA		—	—	—	—
Bank 1 facility 1			Recourse	(22)	LIBOR + 1.45%	(15)	29,185	29,185	—	—
Bank 1 facility 2			Recourse	(22)	LIBOR + 1.43%	(15)	10,568	10,568	—	—



						March 31, 2018 (Unaudited)				December 31, 2017
	Capacity ($)	Recourse vs. Non-Recourse⁽¹⁾	Final Maturity	Contractual Interest Rate		Principal Amount⁽²⁾		Carrying Value⁽²⁾		Principal Amount⁽²⁾		Carrying Value⁽²⁾
Bank 5 facility 1		Recourse	(22)	LIBOR + 1.16%	(15)	2,546		2,546		—		—
Bank 6 facility 1		Recourse	(22)	LIBOR + 1.37%	(15)	23,684		23,684		—		—
Bank 6 facility 2		Recourse	(22)	LIBOR + 1.25%	(15)	35,034		35,034		—		—
Subtotal CMBS credit facilities						101,017		101,017		—		—
Subtotal master repurchase facilities						602,277		602,277		—		—

Total						$	1,704,020	$	1,698,408	$	392,829	$	389,661

_________________________________________


(1)	Subject to customary non-recourse carveouts.


(2)	Difference between principal amount and carrying value of securitization bonds payable, net and mortgage and other notes payable, net is attributable to deferred financing costs, net and premium/discount on mortgage notes payable.


(3)	The ability to borrow additional amounts terminates on February 1, 2022 at which time the Company may, at its election, extend the termination date for two additional six month terms.

(4)


(5)	2015 FL3 was repaid in full subsequent to March 31, 2018.


(6)	Payment terms are periodic payment of principal and interest for debt on two properties and periodic payment of interest only with principal at maturity (except for principal repayments to release collateral properties disposed) for debt on one property.

(7)

(8)


(9)	Represents two separate senior mortgage notes with a weighted average maturity of December 1, 2020 and weighted average interest rate of 5.27%.


(10)	The initial maturity of the mortgage payable is August 2018, with a two-year extension available at the Company’s option, which may be subject to the satisfaction of certain customary conditions set forth in the governing documents.


(11)	Recourse solely with respect to 25.0% of the financed amount.


(12)	The initial maturity of the note payable is December 2018, with two one-year extensions available at the Company’s option, which may be subject to the satisfaction of certain customary conditions set forth in the governing documents.


(13)	Recourse solely with respect to 25.0% of the repurchase price for purchased assets with a lender debt yield equal to or greater than 10.0% at the time of financing plus 100.0% of the repurchase price for purchased assets with a lender debt yield less than 10.0% at the time of financing.


(14)	The next maturity date is October 2018, with three, one-year extensions available at the option of the Company, which may be exercised upon the satisfaction of certain customary conditions set forth in the governing documents.


(15)	Represents the weighted average spread as of March 31, 2018. The contractual interest rate depends upon asset type and characteristics and ranges from one-month to six-month LIBOR plus 1.20% to 2.75%.


(16)	The next maturity date is October 2018, with a one-year extension available, which may be subject to the satisfaction of certain customary conditions set forth in the governing documents.


(17)	Recourse solely with respect to the greater of: (i) 25.0% of the financed amount of stabilized loans plus the financed amount of transitional loans, as further defined in the governing documents; or (ii) the lesser of $25.0 million or the aggregate financed amount of all loans.


(18)	The Company has exercised the third of four, one-year extensions available at the Company’s option, respectively. These extensions may be subject to the satisfaction of certain customary conditions set forth in the governing documents.


(19)	Recourse solely with respect to 25.0% of the financed amount.


(20)	The initial maturity is October 2018. The Company may, at its option, extend the facility for one-year periods indefinitely, subject to the approval of the global financial institution.


(21)	The initial maturity is June 2019. The Company may, at its option, extend the facility for one-year periods indefinitely, subject to the approval of the global financial institution.


(22)	The maturity dates on the CMBS Credit Facilities are dependent upon asset type and will typically range from three to six months.

Schedule of Scheduled Principal on Debt

The following table summarizes future scheduled minimum principal payments at March 31, 2018 based on current contractual maturity (dollars in thousands):



	Total		Securitization Bonds Payable, Net		Mortgage Notes Payable, Net		Credit Facilities
Remainder of 2018	$	419,172	$	—	$	138,161	$	281,011
2019	280,970		—		2,544		278,426
2020	14,778		—		14,778		—
2021	159,053		—		116,213		42,840
2022	2,519		—		2,519		—
2023 and thereafter	827,528		172,145		655,383		—
Total	$	1,704,020	$	172,145	$	929,598	$	602,277

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=64930739&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21521-112644

+ Details

Related Party Arrangements (Tables)

3 Months Ended

Mar. 31, 2018

Summary of Fees and Reimbursements Incurred to the Advisor



Type of Fee or Reimbursement	Financial Statement Location	Due to Related Party as of December 31, 2017		Three Months Ended March 31, 2018							Due to Related Party as of March 31, 2018 (Unaudited)
Type of Fee or Reimbursement	Financial Statement Location	Due to Related Party as of December 31, 2017		Combination Related Consideration		Incurred		Paid			Due to Related Party as of March 31, 2018 (Unaudited)
Fees to Manager
Management	Fee expense	$	—	$	—	$	8,000	$	—		$	8,000
Reimbursements to Manager
Operating costs	Administrative expense	—		—		1,715		—			1,715
Other
Other Payables to Manager	Additional paid-in capital	—		2,934		—		—			2,934
Liabilities assumed in the Combination	(1)	—		6,375		—		(6,375		)	—
Total		$	—	$	9,309	$	9,715	$	(6,375	)	$	12,649

_________________________________________


(1)	Represents due to related party balance assumed as a result of the Combination. Refer to Note 3, “Business Combinations,” for further detail.

Equity-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of Awards Granted or Vested

The table below summarizes our awards granted or vested under the 2018 Plan during the three months ended March 31, 2018:



	Number of Shares
	Restricted Stock	Total	Weighted Average Grant Date Fair Value
Unvested Shares at December 31, 2017	—	—	$	—
Granted	1,003,818	1,003,818	19.39
Vested	—	—	—
Forfeited	—	—	—
Unvested shares at March 31, 2018	1,003,818	1,003,818	$	19.39

Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2018

Equity [Abstract]

Summary of Distributions Declared

During the three months ended March 31, 2018, the Company declared the following dividends on its common stock:



Declaration Date	Record Date	Payment Date	Per Share
February 26, 2018	March 8, 2018	March 16, 2018	$0.145
March 15, 2018	March 29, 2018	April 10, 2018	$0.145

Fair Value (Tables)

3 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

Schedule of Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis

The following table presents financial assets that were accounted for at fair value on a recurring basis as of March 31, 2018 and December 31, 2017 by level within the fair value hierarchy (dollars in thousands):



	March 31, 2018 (Unaudited)								December 31, 2017
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Investments in unconsolidated ventures⁽¹⁾	$	—	$	—	$	257,495	$	257,495	$	—	$	—	$	24,717	$	24,717
Real estate securities, available for sale	—		176,194		—		176,194		—		—		—		—
Mortgage loans held in securitization trusts, at fair value	—		—		3,193,298		3,193,298		—		—		—		—
Liabilities:
Mortgage obligations issued by securitization trusts, at fair value	$	—	$	3,051,315	$	—	$	3,051,315	$	—	$	—	$	—	$	—

_________________________________________


(1)

Summary of Additional Information for PE Investments



	Three Months Ended March 31, 2018 (Unaudited)						Year Ended December 31, 2017
	PE Investments			Mortgage loans held in securitization trusts⁽¹⁾			PE Investments
Beginning balance	$	24,417		$	—		$	—
Contributions⁽²⁾/purchases	243,786			3,327,199			72,325
Distributions/paydowns	(15,946		)	(111,181		)	(49,344		)
Equity in earnings	6,320			—			6,829
Unrealized loss in earnings	(1,082		)	(22,720		)	(5,393		)
Ending balance	$	257,495		$	3,193,298		$	24,417

_________________________________________


(1)	For the three months ended March 31, 2018, unrealized loss of $22.7 million related to mortgage loans held in securitization trusts, at fair value was offset by unrealized gain of $23.2 million related to mortgage obligations issued by securitization trusts, at fair value.


(2)	Includes initial investments, before distribution and contribution closing statement adjustments, and subsequent contributions, including deferred purchase price fundings.

Summary of Principal Amount, Carrying Value and Fair Value of Financial Assets and Liabilities

The following table presents the principal amount, carrying value and fair value of certain financial assets and liabilities as of March 31, 2018 and December 31, 2017 (dollars in thousands):



	March 31, 2018 (Unaudited)							December 31, 2017
	Principal Amount			Carrying Value		Fair Value		Principal Amount			Carrying Value		Fair Value
Financial assets:⁽¹⁾
Loans held for investment, net	$	1,805,636	⁽²⁾	$	1,816,218	$	1,814,530	$	1,307,740	⁽²⁾	$	1,300,784	$	1,311,783
Financial liabilities:⁽¹⁾
Securitization bonds payable, net	$	172,145		$	172,113	$	172,113	$	108,794		$	108,679	$	108,974
Mortgage notes payable, net	929,598			924,018		885,756		284,035			280,982		282,333
Master repurchase facilities	602,277			602,277		602,277		—			—		—

_________________________________________


(1)	The fair value of other financial instruments not included in this table is estimated to approximate their carrying value.


(2)	Excludes future funding commitments of $68.3 million and $19.2 million as of March 31, 2018 and December 31, 2017, respectively.

Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2018

Segment Reporting [Abstract]

Summary of Segment Reporting

The following tables present segment reporting for the three months ended March 31, 2018 and 2017 (dollars in thousands):



Three Months Ended March 31, 2018	Loan			CRE Debt Securities			Net leased real estate			Other			Corporate⁽¹⁾			Total
Net interest income	$	28,232		$	2,902		$	—		$	—		$	(823	)	$	30,311
Property and other income	2,237			2			12,442			14,204			177			29,062
Management fee expense	—			—			—			—			(8,000		)	(8,000		)
Property operating expense	(1,223		)	—			(4,106		)	(6,390		)	—			(11,719		)
Transaction, investment and servicing expense	(441		)	—			(10		)	(12		)	(30,478		)	(30,941		)
Interest expense on real estate	(223		)	—			(3,498		)	(2,672		)	—			(6,393		)
Depreciation and amortization	(677		)	—			(6,570		)	(11,545		)	—			(18,792		)
Administrative expense	(135		)	84			(1		)	(4		)	(3,172		)	(3,228		)
Unrealized gain on mortgage loans and obligations held in securitization trusts, net	—			(110		)	—			—			607			497
Other gain on investments, net	442			—			23			—			—			465
Income (loss) before equity in earnings of unconsolidated ventures and income taxes	28,212			2,878			(1,720		)	(6,419		)	(41,689		)	(18,738		)
Equity in earnings of unconsolidated ventures	10,550			—			—			5,238			—			15,788
Income tax benefit (expense)	816			—			—			(267		)	—			549
Net income (loss)	$	39,578		$	2,878		$	(1,720	)	$	(1,448	)	$	(41,689	)	$	(2,401	)

_________________________________________

(1)



Three Months Ended March 31, 2017	Loan			Net leased real estate			Other		Corporate			Total
Net interest income	$	29,047		$	—		$	—	$	—		$	29,047
Property and other income	724			4,576			—		—			5,300
Property operating expense	(537		)	(1,074		)	—		—			(1,611		)
Transaction, investment and servicing expense	(614		)	(87		)	—		—			(701		)
Interest expense on real estate	—			(976		)	—		—			(976		)
Depreciation and amortization	(97		)	(2,188		)	—		—			(2,285		)
Administrative expense	(65		)	—			—		(2,947		)	(3,012		)
Income (loss) before equity in earnings (losses) of unconsolidated ventures and income tax benefit (expense)	28,458			251			—		(2,947		)	25,762
Equity in earnings of unconsolidated ventures	4,209			—			1,829		—			6,038
Income tax benefit (expense)	—			—			223		—			223
Net income (loss)	$	32,667		$	251		$	2,052	$	(2,947	)	$	32,023

Summary of Total Assets by Segment

The following table presents total assets by segment as of March 31, 2018 and December 31, 2017 (dollars in thousands):



Total Assets	Loan⁽¹⁾		CRE Debt Securities		Net leased real estate		Other⁽¹⁾⁽²⁾		Corporate⁽³⁾		Total
March 31, 2018 (Unaudited)	$	2,590,367	$	3,597,300	$	741,861	$	1,148,338	$	43,039	$	8,120,905
December 31, 2017	1,573,714		—		241,271		24,417		—		1,839,402

_________________________________________


(1)	Includes investments in unconsolidated ventures totaling $179.3 million as of December 31, 2017.


(2)	Includes investments in unconsolidated ventures totaling $756.5 million and $24.4 million as of March 31, 2018 and December 31, 2017, respectively.


(3)	Includes cash, unallocated receivables, deferred costs and other assets, net and the elimination of the subordinate tranches of the securitization trusts in consolidation.

Revenue by Geographic Areas

Geography information on total income, which includes earnings from investments in unconsolidated ventures, is presented as follows (dollars in thousands):



	Three Months Ended March 31,
	2018		2017
Total income by geography:
United States	$	107,815	$	45,590
Other	—		899
Total	$	107,815	$	46,489

Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2018

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The Company’s net income (loss) and weighted average shares outstanding for the three months ended March 31, 2018 and 2017 consist of the following (dollars in thousands, except per share data):



	Three Months Ended March 31,
	2018			2017
Net income (loss)	$	(2,401	)	$	32,023
Net (income) loss attributable to noncontrolling interests:
Investment Entities	(2,370		)	(9,137		)
Operating Partnership⁽¹⁾	57			(2,075		)
Net income (loss) attributable to Colony NorthStar Credit Real Estate, Inc. common stockholders	$	(4,714	)	$	20,811

Numerator:
Net (income) loss allocated to participating securities (nonvested shares)	(146		)	—
Net income (loss) attributable to common stockholders	$	(4,860	)	$	20,811

Denominator:
Weighted average shares outstanding⁽²⁾	98,662			44,399

Net income (loss) per common share - basic and diluted ⁽³⁾	$	(0.05	)	$	0.47

_________________________________________


(1)	For earnings per share for the three months ended March 31, 2017, the Company allocated Company OP’s share of net income as if Company OP held 3,075,623 CLNC OP Units during the period for comparative purposes. The CLNC OP units were not issued until January 31, 2018.


(2)	For earnings per share, the Company assumes 44.4 million shares of class B-3 common stock were outstanding prior to January 31, 2018 to reflect the standalone pre-merger financial information of the CLNS Investment Entities, the Company’s predecessor for accounting purposes.


(3)	Excludes 3,075,623 CLNC OP Units, which are redeemable for cash, or at the Company’s option, shares of Class A common stock on a one-for-one basis, and therefore would not be dilutive.

Business and Organization (Details) - USD ($)	Sep. 15, 2017	Mar. 31, 2018
Schedule of Investments [Line Items]
Initial capital contribution	$ 1,000
Credit RE Operating Company, LLC
Schedule of Investments [Line Items]
Ownership percentage by parent		97.60%
Ownership percentage by noncontrolling owners		2.40%

Summary of Significant Accounting Policies - Narrative (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2018 USD ($) investment variable_interest_entity	Mar. 31, 2017 USD ($)	Dec. 31, 2017 USD ($)
Variable Interest Entity [Line Items]
Number of securitization trusts \| investment	3
OTTI recorded on its CRE securities	$ 0
Provisional amount of income tax expense			$ 2,000,000
Income tax expense (benefit)	(549,000)	$ (223,000)
Restricted cash	$ 117,443,000		41,901,000
Primary beneficiary
Variable Interest Entity [Line Items]
Number of investing VIEs \| variable_interest_entity	3
Restricted cash	$ 29,281,000		$ 24,928,000
CLNS Contributed Portfolio \| CLNS OP \| Minimum
Variable Interest Entity [Line Items]
Ownership percentage by parent			38.00%
CLNS Contributed Portfolio \| CLNS OP \| Maximum
Variable Interest Entity [Line Items]
Ownership percentage by parent			100.00%

Summary of Significant Accounting Policies - Classification, Carrying Value and Maximum Exposure of VIEs (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Variable Interest Entity [Line Items]
Real estate securities, available for sale, at fair value	$ 176,194	$ 0
Investments in unconsolidated ventures	756,468	203,720
Total Assets	8,120,905	$ 1,839,402
Unconsolidated VIEs
Variable Interest Entity [Line Items]
Maximum Exposure to Loss	897,812
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets	895,660
Real estate securities, available for sale \| Unconsolidated VIEs
Variable Interest Entity [Line Items]
Maximum Exposure to Loss	176,194
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets	176,194
Investments in unconsolidated ventures \| Unconsolidated VIEs
Variable Interest Entity [Line Items]
Maximum Exposure to Loss	379,018
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets	379,018
Loans held for investment, net \| Unconsolidated VIEs
Variable Interest Entity [Line Items]
Maximum Exposure to Loss	342,600
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets	$ 340,448

Summary of Significant Accounting Policies - Assets and Liabilities from Deconsolidation (Details) - CLNS Investment Entities $ in Thousands	Jan. 31, 2018 USD ($)
Schedule of Equity Method Investments [Line Items]
Cash and cash equivalents	$ (11,408)
Restricted cash	(14,704)
Loans held for investment, net	(553,678)
Investments in unconsolidated ventures	127,062
Receivables, net	(4,344)
Other assets	(114)
Total assets	457,186
Mortgage and other notes payable, net	(128,709)
Accrued and other liabilities	(640)
Escrow deposits payable	(14,704)
Total liabilities	(144,053)
Stockholders’ equity	313,133
Total liabilities and equity	$ 457,186

Summary of Significant Accounting Policies - Operating Real Estate Estimated Useful Lives (Details)	3 Months Ended
	Mar. 31, 2018
Building (fee interest) \| Minimum
Property, Plant and Equipment [Line Items]
Useful life (in years)	7 years
Building (fee interest) \| Maximum
Property, Plant and Equipment [Line Items]
Useful life (in years)	53 years
Land improvements \| Minimum
Property, Plant and Equipment [Line Items]
Useful life (in years)	6 years
Land improvements \| Maximum
Property, Plant and Equipment [Line Items]
Useful life (in years)	12 years
Furniture, fixtures and equipment \| Minimum
Property, Plant and Equipment [Line Items]
Useful life (in years)	7 years
Furniture, fixtures and equipment \| Maximum
Property, Plant and Equipment [Line Items]
Useful life (in years)	8 years

Business Combinations - Narrative (Details) $ in Millions			1 Months Ended	3 Months Ended
Business Combinations - Narrative (Details) $ in Millions	Feb. 01, 2018	Jan. 31, 2018 shares	Jul. 31, 2017 USD ($)	Mar. 31, 2018 USD ($)
Business Acquisition [Line Items]
Conversion of stock, conversion ratio		1
Settlement payment of CLNS true-up adjustment \| $			$ 55.0
Acquisition related costs \| $				$ 30.2
Other acquisition related costs \| $				$ 5.9
CLNS OP Subsidiary \| CLNC OP Units
Business Acquisition [Line Items]
Exchange ratio		1
CLNS OP \| Class B-3
Business Acquisition [Line Items]
Stock issued		44,400,000
NorthStar I and NorthStar II
Business Acquisition [Line Items]
Stock issued		82,505,000
Investment in unconsolidated ventures, capitalization rate				6.80%
NorthStar I
Business Acquisition [Line Items]
Stock issued		42,149,000
Exchange ratio		0.3532
Shares vested in business combination		21,000
NorthStar II
Business Acquisition [Line Items]
Stock issued		40,356,000
Exchange ratio		0.3511
Shares vested in business combination		25,000
CLNS OP \| CLNS OP Subsidiary \| CLNC OP Units
Business Acquisition [Line Items]
Stock issued		3,100,000
Minimum \| NorthStar I and NorthStar II
Business Acquisition [Line Items]
Real estate and related intangibles, capitalization rates				6.50%
Useful lives of intangibles acquired (in years)	1 year
Maximum \| NorthStar I and NorthStar II
Business Acquisition [Line Items]
Real estate and related intangibles, capitalization rates				8.30%
Useful lives of intangibles acquired (in years)	10 years
NorthStar I Stockholders
Business Acquisition [Line Items]
Shareholder ownership percentage		32.00%
NorthStar II Stockholders
Business Acquisition [Line Items]
Shareholder ownership percentage		31.00%
CLNS OP
Business Acquisition [Line Items]
Shareholder ownership percentage		37.00%
Investment Bankers
Business Acquisition [Line Items]
Acquisition related costs \| $				$ 24.3

Business Combinations - Combination Consideration (Details) $ / shares in Units, $ in Thousands	Jan. 31, 2018 USD ($) $ / shares shares
NorthStar I and NorthStar II
Business Acquisition [Line Items]
Shares of Class A common stock issued in the mergers	82,505,000
Fair value consideration per share (in dollars per share) \| $ / shares	$ 24.50
Fair value of NorthStar I and NorthStar II consideration \| $	$ 2,021,373
NorthStar I
Business Acquisition [Line Items]
Exchange ratio	0.3532
Shares of Class A common stock issued in the mergers	42,149,000
Fair value consideration per share (in dollars per share) \| $ / shares	$ 24.50
Fair value of NorthStar I and NorthStar II consideration \| $	$ 1,032,651
Shares vested in business combination	21,000
NorthStar II
Business Acquisition [Line Items]
Exchange ratio	0.3511
Shares of Class A common stock issued in the mergers	40,356,000
Fair value consideration per share (in dollars per share) \| $ / shares	$ 24.50
Fair value of NorthStar I and NorthStar II consideration \| $	$ 988,722
Shares vested in business combination	25,000
NorthStar II
Business Acquisition [Line Items]
Outstanding shares of common stock at January 31, 2018	114,943,000
NorthStar I
Business Acquisition [Line Items]
Outstanding shares of common stock at January 31, 2018	119,333,000

Business Combinations - Assets Acquired, Liabilites Assumed and Noncontrolling Interests (Details) $ in Thousands	Jan. 31, 2018 USD ($)
NorthStar I and NorthStar II
Business Acquisition [Line Items]
Fair value of NorthStar I and NorthStar II consideration	$ 2,021,373
Assets acquired
Cash and cash equivalents	181,557
Restricted cash	91,877
Loans held for investment	1,249,733
Real estate securities, available for sale, at fair value	165,524
Real estate, net	1,283,313
Investments in unconsolidated ventures	443,593
Receivables, net	23,842
Deferred leasing costs and intangible assets, net	111,333
Other assets	38,075
Mortgage loans held in securitization trusts, at fair value	3,327,199
Total assets acquired	6,916,046
Liabilities assumed
Securitization bonds payable, net	80,825
Mortgage and other notes payable, net	781,616
Credit facilities	648,869
Due to related party	6,375
Accrued and other liabilities	39,859
Intangible liabilities, net	19,739
Escrow deposits payable	49,356
Mortgage obligations issued by securitization trusts, at fair value	3,185,714
Total liabilities assumed	4,812,353
Noncontrolling interests	82,320
Fair value of net assets acquired	2,021,373
NorthStar I
Business Acquisition [Line Items]
Fair value of NorthStar I and NorthStar II consideration	1,032,651
Assets acquired
Cash and cash equivalents	130,197
Restricted cash	30,564
Loans held for investment	521,462
Real estate securities, available for sale, at fair value	100,731
Real estate, net	790,996
Investments in unconsolidated ventures	67,899
Receivables, net	12,363
Deferred leasing costs and intangible assets, net	74,243
Other assets	16,407
Mortgage loans held in securitization trusts, at fair value	1,894,404
Total assets acquired	3,639,266
Liabilities assumed
Securitization bonds payable, net	0
Mortgage and other notes payable, net	399,131
Credit facilities	293,340
Due to related party	4,533
Accrued and other liabilities	21,640
Intangible liabilities, net	17,931
Escrow deposits payable	12,994
Mortgage obligations issued by securitization trusts, at fair value	1,784,223
Total liabilities assumed	2,533,792
Noncontrolling interests	72,823
Fair value of net assets acquired	1,032,651
NorthStar II
Business Acquisition [Line Items]
Fair value of NorthStar I and NorthStar II consideration	988,722
Assets acquired
Cash and cash equivalents	51,360
Restricted cash	61,313
Loans held for investment	728,271
Real estate securities, available for sale, at fair value	64,793
Real estate, net	492,317
Investments in unconsolidated ventures	375,694
Receivables, net	11,479
Deferred leasing costs and intangible assets, net	37,090
Other assets	21,668
Mortgage loans held in securitization trusts, at fair value	1,432,795
Total assets acquired	3,276,780
Liabilities assumed
Securitization bonds payable, net	80,825
Mortgage and other notes payable, net	382,485
Credit facilities	355,529
Due to related party	1,842
Accrued and other liabilities	18,219
Intangible liabilities, net	1,808
Escrow deposits payable	36,362
Mortgage obligations issued by securitization trusts, at fair value	1,401,491
Total liabilities assumed	2,278,561
Noncontrolling interests	9,497
Fair value of net assets acquired	$ 988,722

Business Combinations - Contributions from Legacy Entities (Details) $ in Thousands	2 Months Ended
	Mar. 31, 2018 USD ($)
NorthStar I
Business Acquisition [Line Items]
Total revenues	$ 37,312
Net income (loss) attributable to common stockholders	(2,175)
NorthStar II
Business Acquisition [Line Items]
Total revenues	39,207
Net income (loss) attributable to common stockholders	8,626
NorthStar I and NorthStar II
Business Acquisition [Line Items]
Total revenues	76,519
Net income (loss) attributable to common stockholders	$ 6,451

Business Combinations - Pro Forma Information (Details) - NorthStar I and NorthStar II - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Business Acquisition [Line Items]
Total revenues	$ 136,038	$ 123,426
Net income (loss) attributable to Colony NorthStar Credit Real Estate, Inc.	37,628	49,196
Net income (loss) attributable to common stockholders	$ 35,229	$ 39,852
Earnings (loss) per common share:
Earnings (loss) per common share, basic (in dollars per share)	$ 0.27	$ 0.31
Earnings (loss) per common share, diluted (in dollars per share)	$ 0.27	$ 0.31

Loans Held for Investment, net - Summary of Loans Held for Investment, Net (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance	$ 1,805,636	$ 1,307,740
Allowance for loan losses	(517)	(517)	$ (176)	$ (3,386)
Loans held for investment, net	1,816,218	1,300,784
Commercial Mortgage, Excluding PCI Loans
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance	1,805,636	1,286,296
Carrying Value	1,816,735	1,280,457
Allowance for loan losses		(500)
Loans held for investment, net	1,816,735	1,280,457
Fixed rate
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance	132,471	613,600
Carrying Value	132,311	605,576
Variable rate
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance	1,673,165	672,696
Carrying Value	1,684,424	674,881
Mortgage loans \| PCI Loans
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance	0	21,444
Carrying Value	0	20,844
Mortgage loans \| Fixed rate
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance	16,240	471,669
Carrying Value	$ 16,159	$ 463,748
Weighted Average Coupon	10.50%	8.30%
Weighted Average Maturity in Years	6 years 4 days	2 years
Mortgage loans \| Variable rate
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance	$ 1,039,007	$ 260,366
Carrying Value	$ 1,046,581	$ 260,932
Weighted Average Coupon	6.60%	8.10%
Weighted Average Maturity in Years	3 years 1 month 13 days	2 years 3 months 18 days
Securitized loans \| Variable rate
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance	$ 497,849	$ 377,939
Carrying Value	$ 501,055	$ 379,670
Weighted Average Coupon	6.90%	6.70%
Weighted Average Maturity in Years	10 months 21 days	3 months 18 days
Mezzanine loans \| Fixed rate
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance	$ 116,231	$ 141,931
Carrying Value	$ 116,152	$ 141,828
Weighted Average Coupon	13.10%	13.20%
Weighted Average Maturity in Years	5 years 1 month 24 days	3 years 2 months 12 days
Mezzanine loans \| Variable rate
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance	$ 109,821	$ 34,391
Carrying Value	$ 110,014	$ 34,279
Weighted Average Coupon	10.10%	9.80%
Weighted Average Maturity in Years	3 years 5 months 5 days	1 year 3 months 18 days
Preferred equity interests \| Variable rate
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance	$ 26,488	$ 0
Carrying Value	$ 26,774	$ 0
Weighted Average Coupon	14.20%	0.00%
Weighted Average Maturity in Years	1 year 8 months 16 days	0 years

Loans Held for Investment, net - Activity in Loans Held for Investment, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Jan. 31, 2018
Movement in Mortgage Loans on Real Estate [Roll Forward]
Balance at January 1, 2018	$ 1,300,784
Loans held for investment acquired in the Combination (refer to Note 3)	1,249,733
Deconsolidation of investment entities		$ (553,678)
Acquisitions/originations/additional funding	5,059
Loan maturities/principal repayments	(136,913)
Combination adjustment	50,314
Discount accretion/premium amortization	1,017
Capitalized interest	530
Balance at March 31, 2018	$ 1,816,218

Loans Held for Investment, net - Narrative (Details)	3 Months Ended		12 Months Ended
Loans Held for Investment, net - Narrative (Details)	Mar. 31, 2018 USD ($) loan investment property	Mar. 31, 2017 USD ($) loan	Dec. 31, 2017 USD ($) loan	Dec. 31, 2016 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, net	$ 1,816,218,000		$ 1,300,784,000
Provision for loan loss	$ 0
Troubled debt restructuring, number of contracts \| loan	4
Troubled debt restructuring, default, number of contracts \| loan	2
Number of properties collateralized \| property	27
Troubled debt restructuring collateral fair value	$ 137,100,000
Forebearance agreement extension option period (in days)	90 days
Provision for loan losses	$ 0	$ 0	0
Number of loans modified during the period \| loan	0	0
Allowance for loan losses	$ 517,000	$ 176,000	517,000	$ 3,386,000
Carrying value of loans			42,200,000
Maturity period of debt instruments depending upon the asset type (in years)	2 years 7 months 28 days
Real estate debt investments with contractual payments past due \| investment	7
Number of CRE debt investments contributed to more than 10% of interest income \| investment	0
Percent of interest income contributed by investment	10.00%
Future funding commitments	$ 68,300,000		$ 19,200,000
Mezzanine loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Troubled debt restructuring, number of contracts \| loan	1		1
Carrying value before allowance loan losses			$ 28,600,000
Other Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Troubled debt restructuring, number of contracts \| loan	3		3
Carrying value before allowance loan losses	$ 108,500,000		$ 108,500,000
Troubled debt restructuring, default, number of contracts \| loan			2
Mortgage loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Future funding commitments	53,600,000
Securitized loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Future funding commitments	12,500,000
Preferred equity interests
Accounts, Notes, Loans and Financing Receivable [Line Items]
Future funding commitments	2,200,000
Commercial Mortgage, Excluding PCI Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, net	1,816,735,000		$ 1,280,457,000
Allowance for loan losses			500,000
Carrying value of loans	42,176,000		42,176,000
90 Days or More Past Due / Nonaccrual \| Commercial Mortgage, Hospitality Loan, Excluding PCI Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, net	260,200,000
90 Days or More Past Due / Nonaccrual \| Commercial Mortgage, Excluding PCI Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, net	$ 432,136,000		$ 26,765,000

Loans Held for Investment, net - Nonaccrual and Past Due Loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans held for investment, net		$ 1,816,218	$ 1,300,784
Commercial Mortgage, Excluding PCI Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans held for investment, net		1,816,735	1,280,457
Commercial Mortgage, Excluding PCI Loans \| Current or Less Than 30 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans held for investment, net		1,384,599	1,101,522
Commercial Mortgage, Excluding PCI Loans \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans held for investment, net		0	144,241
Commercial Mortgage, Excluding PCI Loans \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans held for investment, net		0	7,929
Commercial Mortgage, Excluding PCI Loans \| 90 Days or More Past Due / Nonaccrual
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans held for investment, net		$ 432,136	$ 26,765
Commercial Mortgage, Excluding PCI Loans \| Subsequent Event \| 90 Days or More Past Due / Nonaccrual
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans held for investment repaid in full	$ 42,200

Loans Held for Investment, net - Non-PCI Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Financing Receivable, Allowance for Credit Losses [Line Items]
Gross Carrying Value With Allowance for Loan Losses			$ 42,200
Commercial Mortgage, Excluding PCI Loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Unpaid Principal Balance	$ 430,053		215,997
Gross Carrying Value With Allowance for Loan Losses	42,176		42,176
Gross Carrying Value Without Allowance for Loan Losses	389,960		175,090
Gross Carrying Value Total	432,136		217,266
Allowance for Loan Losses	517		$ 517
Average carrying value before allowance for loan losses	385,067	$ 40,066
Interest income	$ 3,758	$ 756

Loans Held for Investment, net - Changes in Accretable Yield (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Beginning accretable yield	$ 726	$ 5,929
Changes in accretable yield(1)	(605)	(572)
Accretion recognized in earnings	(121)	(1,522)
Ending accretable yield	$ 0	$ 3,835

Loans Held for Investment, net - Changes in Allowance for Loan Losses (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Allowance for Loan and Lease Losses [Roll Forward]
Allowance for loan losses at beginning of period	$ 517,000	$ 3,386,000	$ 3,386,000
Provision for loan losses	0	0	0
Charge-off	0	3,210,000
Allowance for loan losses at end of period	$ 517,000	$ 176,000	$ 517,000

Investments in Unconsolidated Ventures - Investments in Unconsolidated Ventures (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Equity Method Investments and Joint Ventures [Abstract]
Equity method investments	$ 498,973	$ 179,303
Investments under fair value option	257,495	24,417
Investments in unconsolidated ventures	$ 756,468	$ 203,720

Investments in Unconsolidated Ventures - Summary of Equity Method Investments (Details) $ in Thousands	Mar. 31, 2018 USD ($) investment	Dec. 31, 2017 USD ($)
Schedule of Equity Method Investments [Line Items]
Equity method investments	$ 498,973	$ 179,303
ADC investments
Schedule of Equity Method Investments [Line Items]
Equity method investments	$ 320,991	179,303
Number of investments \| investment	8
Other investment ventures
Schedule of Equity Method Investments [Line Items]
Equity method investments	$ 177,982	$ 0
Number of investments \| investment	10
Each investment immaterial balance (less than)	$ 60,400

Investments in Unconsolidated Ventures - Narrative (Details)	Mar. 31, 2018
Minimum
Investment [Line Items]
Investments fair value option, ownership percentage	0.10%
Maximum
Investment [Line Items]
Investments fair value option, ownership percentage	30.30%

Investments in Unconsolidated Ventures - Summarized Financial Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Equity Method Investments and Joint Ventures [Abstract]
Total revenues	$ 19,938	$ 7,803
Net income (loss)	$ 10,107	$ 6,937

Real Estate, net - Real Estate Portfolios (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($) property	Dec. 31, 2017 USD ($)
Real Estate [Line Items]
Net lease portfolio, net	$ 1,495,096	$ 219,740
Foreclosed properties included in real estate	19,900	19,500
Net lease portfolio, net
Real Estate [Line Items]
Land and improvements	102,764	25,262
Buildings, building leaseholds, and improvements	575,589	178,109
Tenant improvements	8,901	2,316
Construction-in-progress	23	21
Subtotal	687,277	205,708
Less: Accumulated depreciation	(10,294)	(5,516)
Net lease portfolio, net	676,983	200,192
Other Portfolio, Net
Real Estate [Line Items]
Land and improvements	134,675	667
Buildings, building leaseholds, and improvements	643,527	18,477
Tenant improvements	28,641	36
Furniture, fixtures and equipment	15,526	680
Construction-in-progress	500	0
Subtotal	822,869	19,860
Less: Accumulated depreciation	(4,756)	(312)
Net lease portfolio, net	$ 818,113	$ 19,548
Property Concentration Risk \| Revenue
Real Estate [Line Items]
Concentration risk, number of properties \| property	0
Concentration risk, percentage	10.00%

Real Estate, net - Minimum Future Rents (Details) $ in Thousands	Mar. 31, 2018 USD ($)
Operating Leases, Future Minimum Payments Receivable [Abstract]
Remainder of 2018	$ 66,776
2019	83,587
2020	74,400
2021	62,095
2022	50,667
2023 Thereafter	94,018
Total	$ 431,543

Real Estate, net - Commitments and Contractual Obligations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Real Estate [Abstract]
Rent expense	$ 700	$ 0
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
Remainder of 2018	2,115
2019	2,821
2020	2,812
2021	2,720
2022	1,798
2023 and thereafter	2,891
Total	$ 15,157

Real Estate Securities, Available for Sale - Investments in CRE Securities (Details) $ in Thousands	Mar. 31, 2018 USD ($) security	Dec. 31, 2017 security
Real estate securities
Carrying value of CMBS Credit Facilities serving as collateral	$ 139,600
Non-accretable amount of total cash flows	$ 4,900
Real estate securities, available for sale
Real estate securities
Count \| security	32	0
Principal amount	$ 234,357
Total Discount	(56,315)
Amortized Cost	178,042
Cumulative unrealized gain on investments	432
Cumulative unrealized (loss) on investments	(2,280)
Real estate securities, available for sale	$ 176,194
Weighted average coupon	3.15%
Weighted average unleveraged current yield	7.36%
CRE security acquired from NorthStar II	$ 31,300
CRE security acquired from NorthStar II, discount	$ 16,900

Real Estate Securities, Available for Sale - Narrative (Details)	3 Months Ended
	Mar. 31, 2018 USD ($) loan security securitization_trust	Mar. 31, 2017 USD ($)	Dec. 31, 2017 security
Real estate securities
Unrealized gains (losses) in OCI	$ (1,800,000)
Number of securities in unrealized loss positions \| security	25
Available-for-sale securities, aggregate carrying value in unrealized loss position	$ 138,200,000
Available-for-sale securities, unrealized loss position, loss	(2,300,000)
OTTI recorded on its CRE securities	$ 0
Number of securitization trusts held \| securitization_trust	3
Net income (loss) attributable to common stockholders	$ (4,860,000)	$ 20,811,000
Real estate securities, available for sale
Real estate securities
Number of CRE securities \| security	32		0
Weighted average contractual maturity (in years)	29 years 10 months 24 days
Expected maturity (in years)	7 years 10 months 24 days
Primary beneficiary
Real estate securities
Mortgage loans held in trust, unpaid principal balance	$ 3,100,000,000
Mortgage obligations held in trust, unpaid principal balance	$ 2,900,000,000
Number of underlying mortgage loans \| loan	159
Weighted average coupon rate	4.90%
Weighted average loan to value ratio	58.00%
Difference between held and issued mortgage loans in securitization trusts	$ 142,000,000
Net income (loss) attributable to common stockholders	$ 2,184,000

Real Estate Securities, Available for Sale - Assets and Liabilities Related to Securitized Trust (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Variable Interest Entity [Line Items]
Mortgage loans held in securitization trusts, at fair value	$ 3,193,298	$ 0
Receivables, net	60,999	35,512
Total Assets	8,120,905	1,839,402
Mortgage obligations issued by securitization trusts, at fair value	3,051,315	0
Accrued and other liabilities	49,896	5,175
Liabilities	4,918,656	$ 431,832
Primary beneficiary
Variable Interest Entity [Line Items]
Mortgage loans held in securitization trusts, at fair value	3,193,298
Receivables, net	13,337
Total Assets	3,206,635
Mortgage obligations issued by securitization trusts, at fair value	3,051,315
Accrued and other liabilities	12,490
Liabilities	$ 3,063,805

Real Estate Securities, Available for Sale - Activity Reported in Statement of Operations Related to Securitized Trust (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Variable Interest Entity [Line Items]
Interest income on mortgage loans held in securitization trusts	$ 25,865	$ 0
Interest expense on mortgage obligations issued by securitization trusts	(24,278)	0
Unrealized gain on mortgage loans and obligations held in securitization trusts, net	497	0
Net income (loss) attributable to Colony NorthStar Credit Real Estate, Inc. common stockholders	(4,860)	$ 20,811
Primary beneficiary
Variable Interest Entity [Line Items]
Interest income on mortgage loans held in securitization trusts	25,865
Interest expense on mortgage obligations issued by securitization trusts	(24,277)
Net interest income	1,588
Other expenses related to securitization trusts	99
Unrealized gain on mortgage loans and obligations held in securitization trusts, net	497
Net income (loss) attributable to Colony NorthStar Credit Real Estate, Inc. common stockholders	$ 2,184

- Deferred Leasing Costs and Intangibles (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Deferred leasing costs
Carrying Amount	$ 29,940	$ 3,671
Accumulated Amortization	(1,680)	(657)
Net Carrying Amount	28,260	3,014
Deferred Leasing Costs and Intangible Assets
Carrying Amount	127,322	14,619
Accumulated Amortization	(14,083)	(3,605)
Net Carrying Amount	113,239	11,014
Intangible Liabilities
Carrying Amount	20,453	51
Accumulated Amortization	(816)	(15)
Net Carrying Amount	19,637	36
In-place lease values
Deferred Leasing Costs and Intangible Assets
Carrying Amount	77,303	9,214
Accumulated Amortization	(11,203)	(2,657)
Net Carrying Amount	66,100	6,557
Above-market lease values
Deferred Leasing Costs and Intangible Assets
Carrying Amount	20,027	1,682
Accumulated Amortization	(1,190)	(283)
Net Carrying Amount	18,837	1,399
Below-market ground lease obligations
Deferred Leasing Costs and Intangible Assets
Carrying Amount	52	52
Accumulated Amortization	(10)	(8)
Net Carrying Amount	$ 42	$ 44

Deferred Leasing Costs and Other Intangibles - Summary of the Amortization of Deferred Leasing Costs and Intangibles (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Mortgage notes above/below market value amortization	$ (2)	$ (2)
Below-market lease values	801	3
Amortization of capitalized above/below market leases	(106)	(62)
Deferred leasing costs	1,023	160
Amortization expense	9,569	972
Above-market lease values
Finite-Lived Intangible Assets [Line Items]
Mortgage notes above/below market value amortization	(907)	(65)
Below-market ground lease obligations
Finite-Lived Intangible Assets [Line Items]
Mortgage notes above/below market value amortization	(2)	(2)
In-place lease values
Finite-Lived Intangible Assets [Line Items]
Mortgage notes above/below market value amortization	$ (8,546)	$ (812)

Deferred Leasing Costs and Other Intangibles - Schedule of Amortization of Deferred Leasing Costs, Intangible Assets and Intangible Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Below-market leases:
Remainder of 2018	$ (3,467)
2019	(4,566)
2020	(2,527)
2021	(1,895)
2022	(1,732)
2023 and after	(5,450)
Total	(19,637)	$ (36)
Deferred leasing costs:
Remainder of 2018	5,285
2019	6,248
2020	4,958
2021	3,763
2022	2,895
2023 and thereafter	5,111
Net Carrying Amount	28,260	3,014
Decrease to rental income
Intangible assets (liabilities) and deferred leasing costs, amortization expense (income):
Remainder of 2018	(81)
2019	(249)
2020	725
2021	445
2022	109
2023 and thereafter	(1,749)
Total	(800)
Increase to property operating expense
Intangible assets (liabilities) and deferred leasing costs, amortization expense (income):
Remainder of 2018	6
2019	8
2020	8
2021	8
2022	8
2023 and thereafter	4
Total	42
Amortization expense
Intangible assets (liabilities) and deferred leasing costs, amortization expense (income):
Remainder of 2018	23,659
2019	22,296
2020	15,523
2021	11,019
2022	8,380
2023 and thereafter	13,483
Total	94,360
Above-market lease values
Finite-lived intangible assets:
Remainder of 2018	3,386
2019	4,317
2020	3,252
2021	2,340
2022	1,841
2023 and after	3,701
Net Carrying Amount	18,837	1,399
Below-market ground lease obligations
Finite-lived intangible assets:
Remainder of 2018	6
2019	8
2020	8
2021	8
2022	8
2023 and after	4
Net Carrying Amount	42	44
In-place lease values
Finite-lived intangible assets:
Remainder of 2018	18,374
2019	16,048
2020	10,565
2021	7,256
2022	5,485
2023 and after	8,372
Net Carrying Amount	$ 66,100	$ 6,557

Other Assets and Liabilities - Summary of Deferred Costs and Other Assets, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Other Assets [Abstract]
Prepaid taxes and deferred tax assets	$ 49,484	$ 1,050
Deferred financing costs, net - credit facilities	3,930	0
Prepaid expenses	3,556	360
Derivative asset	28	117
Total	$ 56,998	$ 1,527

Other Assets and Liabilities - Summary of Other Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Other Liabilities [Abstract]
Accounts payable, accrued expenses and other liabilities	$ 21,286	$ 3,532
Interest payable	17,070	924
Prepaid rent and unearned revenue	6,164	481
Tenant security deposits	3,132	118
Current and deferred tax liability	1,020	120
Derivative liability	1,224	0
Accrued and other liabilities	$ 49,896	$ 5,175

Debt - Schedule of Debt (Details)	3 Months Ended
Debt - Schedule of Debt (Details)	Mar. 31, 2018 USD ($) Extension_Option extension	Dec. 31, 2017 USD ($)
Debt Instrument [Line Items]
Principal Amount	$ 1,704,020,000	$ 392,829,000
Carrying Value	$ 1,698,408,000	389,661,000
Net lease 1
Debt Instrument [Line Items]
Contractual Interest Rate	4.45%
Net lease 2
Debt Instrument [Line Items]
Contractual Interest Rate	4.45%
Net lease 3
Debt Instrument [Line Items]
Contractual Interest Rate	4.45%
Net lease 4
Debt Instrument [Line Items]
Contractual Interest Rate	4.00%
Net lease 6
Debt Instrument [Line Items]
Contractual Interest Rate	4.08%
Net lease 7
Debt Instrument [Line Items]
Contractual Interest Rate	4.45%
Net lease 8
Debt Instrument [Line Items]
Contractual Interest Rate	4.38%
Net lease 10
Debt Instrument [Line Items]
Contractual Interest Rate	4.31%
Multifamily 1
Debt Instrument [Line Items]
Contractual Interest Rate	4.84%
Multifamily 2
Debt Instrument [Line Items]
Contractual Interest Rate	4.94%
Multifamily 3
Debt Instrument [Line Items]
Contractual Interest Rate	5.15%
Multifamily 4
Debt Instrument [Line Items]
Contractual Interest Rate	5.27%
Multifamily 5
Debt Instrument [Line Items]
Contractual Interest Rate	3.98%
Office 1
Debt Instrument [Line Items]
Contractual Interest Rate	4.47%
Office 2
Debt Instrument [Line Items]
Contractual Interest Rate	4.30%
Bank credit facility
Debt Instrument [Line Items]
Capacity	$ 400,000,000
Principal Amount	0	0
Carrying Value	$ 0	0
Debt term extension (in years)	6 months
Number of optional extensions to initial maturity date \| Extension_Option	2
Bank credit facility \| LIBOR
Debt Instrument [Line Items]
Interest rate margin	2.25%
Securitization bonds payable, net
Debt Instrument [Line Items]
Principal Amount	$ 172,145,000	108,794,000
Carrying Value	172,113,000	108,679,000
Securitization bonds payable, net \| 2014 FL1
Debt Instrument [Line Items]
Principal Amount	27,119,000	27,119,000
Carrying Value	$ 27,119,000	27,004,000
Securitization bonds payable, net \| 2014 FL1 \| LIBOR
Debt Instrument [Line Items]
Interest rate margin	3.24%
Securitization bonds payable, net \| 2014 FL2
Debt Instrument [Line Items]
Principal Amount	$ 47,580,000	55,430,000
Carrying Value	$ 47,560,000	55,430,000
Securitization bonds payable, net \| 2014 FL2 \| LIBOR
Debt Instrument [Line Items]
Interest rate margin	3.65%
Securitization bonds payable, net \| 2015 FL3
Debt Instrument [Line Items]
Principal Amount	$ 16,621,000	26,245,000
Carrying Value	$ 16,609,000	26,245,000
Securitization bonds payable, net \| 2015 FL3 \| LIBOR
Debt Instrument [Line Items]
Interest rate margin	4.50%
Securitization bonds payable, net \| Securitization 2016-1
Debt Instrument [Line Items]
Principal Amount	$ 80,825,000	0
Carrying Value	$ 80,825,000	0
Securitization bonds payable, net \| Securitization 2016-1 \| LIBOR
Debt Instrument [Line Items]
Interest rate margin	2.74%
Mortgage and other notes payable, net
Debt Instrument [Line Items]
Principal Amount	$ 929,598,000	284,035,000
Carrying Value	924,018,000	280,982,000
Mortgage and other notes payable, net \| Net lease 1
Debt Instrument [Line Items]
Principal Amount	24,955,000	25,074,000
Carrying Value	24,955,000	25,022,000
Mortgage and other notes payable, net \| Net lease 2
Debt Instrument [Line Items]
Principal Amount	3,529,000	3,544,000
Carrying Value	3,413,000	3,425,000
Mortgage and other notes payable, net \| Net lease 3
Debt Instrument [Line Items]
Principal Amount	7,615,000	7,647,000
Carrying Value	7,364,000	7,390,000
Mortgage and other notes payable, net \| Net lease 4
Debt Instrument [Line Items]
Principal Amount	13,057,000	13,133,000
Carrying Value	12,877,000	12,939,000
Mortgage and other notes payable, net \| Net lease 5
Debt Instrument [Line Items]
Principal Amount	2,383,000	2,482,000
Carrying Value	$ 2,320,000	2,416,000
Mortgage and other notes payable, net \| Net lease 5 \| LIBOR
Debt Instrument [Line Items]
Interest rate margin	2.15%
Mortgage and other notes payable, net \| Net lease 6
Debt Instrument [Line Items]
Principal Amount	$ 32,600,000	32,600,000
Carrying Value	32,245,000	32,234,000
Mortgage and other notes payable, net \| Net lease 7
Debt Instrument [Line Items]
Principal Amount	19,158,000	19,241,000
Carrying Value	18,529,000	18,593,000
Mortgage and other notes payable, net \| Net lease 8
Debt Instrument [Line Items]
Principal Amount	12,585,000	0
Carrying Value	12,029,000	0
Mortgage and other notes payable, net \| Net lease 9
Debt Instrument [Line Items]
Principal Amount	71,890,000	0
Carrying Value	$ 71,830,000	0
Mortgage and other notes payable, net \| Net lease 9 \| LIBOR
Debt Instrument [Line Items]
Interest rate margin	2.20%
Mortgage and other notes payable, net \| Net lease 10
Debt Instrument [Line Items]
Principal Amount	$ 250,000,000	0
Carrying Value	246,124,000	0
Mortgage and other notes payable, net \| Hotel development loan
Debt Instrument [Line Items]
Principal Amount	0	130,000,000
Carrying Value	$ 0	128,649,000
Debt term extension (in years)	1 year
Number of optional extensions to initial maturity date \| Extension_Option	2
Mortgage and other notes payable, net \| Hotel development loan \| LIBOR
Debt Instrument [Line Items]
Interest rate margin	3.50%
Mortgage and other notes payable, net \| Hotel A-Note
Debt Instrument [Line Items]
Principal Amount	$ 0	50,314,000
Carrying Value	$ 0	50,314,000
Mortgage and other notes payable, net \| Hotel A-Note \| LIBOR
Debt Instrument [Line Items]
Interest rate margin	1.60%
Mortgage and other notes payable, net \| Multifamily 1
Debt Instrument [Line Items]
Principal Amount	$ 43,500,000	0
Carrying Value	44,086,000	0
Mortgage and other notes payable, net \| Multifamily 2
Debt Instrument [Line Items]
Principal Amount	43,000,000	0
Carrying Value	43,578,000	0
Mortgage and other notes payable, net \| Multifamily 3
Debt Instrument [Line Items]
Principal Amount	16,000,000
Carrying Value	$ 16,663,000
Mortgage and other notes payable, net \| Multifamily 4
Debt Instrument [Line Items]
Contractual Interest Rate	5.27%
Principal Amount	$ 12,135,000
Carrying Value	12,502,000
Mortgage and other notes payable, net \| Multifamily 5
Debt Instrument [Line Items]
Principal Amount	24,606,000
Carrying Value	23,708,000
Mortgage and other notes payable, net \| Office 1
Debt Instrument [Line Items]
Principal Amount	108,850,000	0
Carrying Value	109,921,000	0
Mortgage and other notes payable, net \| Office 2
Debt Instrument [Line Items]
Principal Amount	77,381,000	0
Carrying Value	76,449,000	0
Mortgage and other notes payable, net \| Office 3
Debt Instrument [Line Items]
Principal Amount	29,800,000	0
Carrying Value	$ 28,217,000	0
Mortgage and other notes payable, net \| Office 3 \| LIBOR
Debt Instrument [Line Items]
Interest rate margin	3.99%
Mortgage and other notes payable, net \| Multi-tenant office
Debt Instrument [Line Items]
Principal Amount	$ 96,143,000	0
Carrying Value	$ 96,797,000	0
Debt term extension (in years)	2 years
Mortgage and other notes payable, net \| Multi-tenant office \| LIBOR
Debt Instrument [Line Items]
Interest rate margin	1.78%
Mortgage and other notes payable, net \| Other notes payable
Debt Instrument [Line Items]
Principal Amount	$ 40,411,000	0
Carrying Value	$ 40,411,000	0
Debt term extension (in years)	1 year
Percent of recourse of the financed amount	25.00%
Number of optional extensions to initial maturity date \| extension	2
Mortgage and other notes payable, net \| Other notes payable \| LIBOR
Debt Instrument [Line Items]
Interest rate margin	2.48%
Credit Facilities
Debt Instrument [Line Items]
Principal Amount	$ 602,277,000	0
Carrying Value	602,277,000	0
Credit Facilities \| Master repurchase facilities
Debt Instrument [Line Items]
Capacity	1,200,000,000
Principal Amount	501,260,000	0
Carrying Value	501,260,000	0
Credit Facilities \| CMBS credit facilities
Debt Instrument [Line Items]
Principal Amount	101,018,000	0
Carrying Value	101,017,000	0
Credit Facilities \| Bank 1 facility 1 \| Master repurchase facilities
Debt Instrument [Line Items]
Capacity	150,000,000
Principal Amount	42,840,000	0
Carrying Value	$ 42,840,000	0
Debt term extension (in years)	1 year
Percent of recourse of the financed amount	25.00%
Number of optional extensions to initial maturity date \| Extension_Option	3
Percentage of repurchase price for purchased assets available for recourse for debt instrument yield less than 10%	100.00%
Credit Facilities \| Bank 1 facility 1 \| Master repurchase facilities \| LIBOR
Debt Instrument [Line Items]
Interest rate margin	2.35%
Credit Facilities \| Bank 1 facility 1 \| CMBS credit facilities
Debt Instrument [Line Items]
Interest rate margin	1.45%
Principal Amount	$ 29,185,000	0
Carrying Value	29,185,000	0
Credit Facilities \| Bank 1 facility 2 \| Master repurchase facilities
Debt Instrument [Line Items]
Capacity	150,000,000
Principal Amount	48,750,000	0
Carrying Value	$ 48,750,000	0
Debt term extension (in years)	1 year
Credit Facilities \| Bank 1 facility 2 \| Master repurchase facilities \| LIBOR
Debt Instrument [Line Items]
Interest rate margin	2.43%
Credit Facilities \| Bank 1 facility 2 \| CMBS credit facilities
Debt Instrument [Line Items]
Interest rate margin	1.43%
Principal Amount	$ 10,568,000	0
Carrying Value	$ 10,568,000	0
Credit Facilities \| Bank 5 facility 1 \| CMBS credit facilities
Debt Instrument [Line Items]
Interest rate margin	1.16%
Principal Amount	$ 2,546,000	0
Carrying Value	2,546,000	0
Credit Facilities \| Bank 2 facility 1 \| Master repurchase facilities
Debt Instrument [Line Items]
Capacity	200,000,000
Principal Amount	0	0
Carrying Value	$ 0	0
Percent of recourse of the financed amount	25.00%
Amount available for recourse	$ 25,000,000
Credit Facilities \| Bank 2 facility 2 \| Master repurchase facilities
Debt Instrument [Line Items]
Capacity	200,000,000
Principal Amount	26,742,000	0
Carrying Value	$ 26,742,000	0
Debt term extension (in years)	1 year
Credit Facilities \| Bank 2 facility 2 \| Master repurchase facilities \| LIBOR
Debt Instrument [Line Items]
Interest rate margin	2.35%
Credit Facilities \| Bank 3 facility 1 \| Master repurchase facilities
Debt Instrument [Line Items]
Capacity	$ 200,000,000
Principal Amount	179,994,000	0
Carrying Value	$ 179,994,000	0
Debt term extension (in years)	1 year
Percent of recourse of the financed amount	25.00%
Credit Facilities \| Bank 3 facility 1 \| Master repurchase facilities \| LIBOR
Debt Instrument [Line Items]
Interest rate margin	2.37%
Credit Facilities \| Bank 3 facility 2 \| Master repurchase facilities
Debt Instrument [Line Items]
Capacity	$ 300,000,000
Principal Amount	202,934,000	0
Carrying Value	$ 202,934,000	0
Debt term extension (in years)	1 year
Credit Facilities \| Bank 3 facility 2 \| Master repurchase facilities \| LIBOR
Debt Instrument [Line Items]
Interest rate margin	2.41%
Credit Facilities \| Bank 3 facility \| CMBS credit facilities
Debt Instrument [Line Items]
Principal Amount	$ 0	0
Carrying Value	0	0
Credit Facilities \| Bank 4 facility \| CMBS credit facilities
Debt Instrument [Line Items]
Principal Amount	0	0
Carrying Value	0	0
Credit Facilities \| Bank 5 facility 2 \| CMBS credit facilities
Debt Instrument [Line Items]
Principal Amount	0	0
Carrying Value	$ 0	0
Credit Facilities \| Bank 6 facility 1 \| CMBS credit facilities
Debt Instrument [Line Items]
Interest rate margin	1.37%
Principal Amount	$ 23,684,000	0
Carrying Value	$ 23,684,000	0
Credit Facilities \| Bank 6 facility 2 \| CMBS credit facilities
Debt Instrument [Line Items]
Interest rate margin	1.25%
Principal Amount	$ 35,034,000	0
Carrying Value	35,034,000	$ 0
Real estate securities, available for sale
Debt Instrument [Line Items]
Principal Amount	$ 500,700,000
Minimum \| Securitization bonds payable, net \| 2015 FL3
Debt Instrument [Line Items]
Initial debt term (in years)	2 years
Minimum \| Mortgage and other notes payable, net \| Hotel development loan \| LIBOR
Debt Instrument [Line Items]
Contractual Interest Rate	3.50%
Minimum \| Credit Facilities \| CMBS credit facilities
Debt Instrument [Line Items]
Initial debt term (in years)	3 months
Minimum \| Credit Facilities \| Bank 1 facility 1 \| Master repurchase facilities
Debt Instrument [Line Items]
Contractual Interest Rate	1.20%
Initial debt term (in years)	1 month
Maximum \| Securitization bonds payable, net \| 2015 FL3
Debt Instrument [Line Items]
Initial debt term (in years)	3 years
Maximum \| Mortgage and other notes payable, net \| Hotel development loan \| LIBOR
Debt Instrument [Line Items]
Contractual Interest Rate	4.00%
Maximum \| Credit Facilities \| CMBS credit facilities
Debt Instrument [Line Items]
Initial debt term (in years)	6 months
Maximum \| Credit Facilities \| Bank 1 facility 1 \| Master repurchase facilities
Debt Instrument [Line Items]
Contractual Interest Rate	2.75%
Initial debt term (in years)	6 months

Debt - Future Minimum Principal Payments (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Remainder of 2018	$ 419,172
2019	280,970
2020	14,778
2021	159,053
2022	2,519
2023 and thereafter	827,528
Total	1,704,020	$ 392,829
Securitization Bonds Payable, Net
Debt Instrument [Line Items]
Remainder of 2018	0
2019	0
2020	0
2021	0
2022	0
2023 and thereafter	172,145
Total	172,145	108,794
Mortgage Notes Payable, Net
Debt Instrument [Line Items]
Remainder of 2018	138,161
2019	2,544
2020	14,778
2021	116,213
2022	2,519
2023 and thereafter	655,383
Total	929,598
Credit Facilities
Debt Instrument [Line Items]
Remainder of 2018	281,011
2019	278,426
2020	0
2021	42,840
2022	0
2023 and thereafter	0
Total	$ 602,277	$ 0

Debt - Narrative (Details)					3 Months Ended
Debt - Narrative (Details)	Apr. 26, 2018 USD ($)	Apr. 23, 2018 USD ($)	Apr. 20, 2018 USD ($)	Feb. 01, 2018 USD ($)	Mar. 31, 2018 USD ($) agreement extension	Dec. 31, 2017 USD ($)
Debt Instrument [Line Items]
Credit facilities					$ 602,277,000	$ 0
Carrying value					1,698,408,000	389,661,000
Principal amount					1,704,020,000	392,829,000
Carrying value of CMBS Credit Facilities					139,600,000
Master repurchase facilities
Debt Instrument [Line Items]
Maximum borrowing capacity					1,200,000,000
Real estate securities, available for sale
Debt Instrument [Line Items]
Principal amount					500,700,000
Carrying value served as collateral					$ 703,000,000
Real estate securities, available for sale \| CMBS credit facilities
Debt Instrument [Line Items]
Number of master repurchase agreements \| agreement					7
Master repurchase facilities
Debt Instrument [Line Items]
Carrying value					$ 602,277,000	0
Principal amount					602,277,000	0
Master repurchase facilities \| Revolving credit facility \| Credit Agreement
Debt Instrument [Line Items]
Maximum borrowing capacity				$ 400,000,000.0	$ 400,000,000.0
Number of optional extensions to initial maturity date \| extension					2
Debt term extension (in months)					6 months
Credit facilities					$ 0
Commitment fee percentage				0.25%
Unused amount, commitment fee percentage				0.35%	0.35%
Master repurchase facilities \| Term loan facilities
Debt Instrument [Line Items]
Principal amount					$ 501,300,000
Master repurchase facilities \| CMBS credit facilities
Debt Instrument [Line Items]
Carrying value					101,017,000	0
Principal amount					101,018,000	0
Securitization Bonds Payable, Net
Debt Instrument [Line Items]
Carrying value					172,113,000	108,679,000
Principal amount					$ 172,145,000	$ 108,794,000
LIBOR \| Master repurchase facilities \| Revolving credit facility \| Credit Agreement
Debt Instrument [Line Items]
Interest rate margin				2.25%
Base Rate \| Master repurchase facilities \| Revolving credit facility \| Credit Agreement
Debt Instrument [Line Items]
Interest rate margin				1.25%
Subsequent Event \| Master Repurchase Agreement, Bank 3 Facility 3
Debt Instrument [Line Items]
Maximum borrowing capacity			$ 500,000,000.0
Repurchase agreement term (in years)			3 years
Subsequent Event \| Master Repurchase Agreement, Bank 1 Facility 1
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 300,000,000.0
Repurchase agreement term (in years)		3 years
Subsequent Event \| Master Repurchase Agreement, Bank 7 Facility 1
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 500,000,000.0
Repurchase agreement term (in years)	3 years

Related Party Arrangements - Fees to the Manager (Narrative) (Details)	3 Months Ended
	Mar. 31, 2018
Management Fee
Related Party Transaction [Line Items]
Related party transaction rate (as a percentage)	1.50%
Management Fee per Quarter
Related Party Transaction [Line Items]
Related party transaction rate (as a percentage)	0.375%
Asset Management Fees
Related Party Transaction [Line Items]
Related party transaction rate (as a percentage)	20.00%
Asset Management Fees per Year
Related Party Transaction [Line Items]
Related party transaction rate (as a percentage)	7.00%

Related Party Arrangements - Summary of Fees and Reimbursements (Details) - Affiliated Entity $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($)
Related Party Transaction, Due to Related Parties [Roll Forward]
Due from (to) related party	$ 0
Combination Related Consideration	9,309
Amount incurred	9,715
Amount paid	(6,375)
Due from (to) related party	12,649
Management
Related Party Transaction, Due to Related Parties [Roll Forward]
Due from (to) related party	0
Combination Related Consideration	0
Amount incurred	8,000
Amount paid	0
Due from (to) related party	8,000
Operating costs
Related Party Transaction, Due to Related Parties [Roll Forward]
Due from (to) related party	0
Combination Related Consideration	0
Amount incurred	1,715
Amount paid	0
Due from (to) related party	1,715
Other Payables to Manager
Related Party Transaction, Due to Related Parties [Roll Forward]
Due from (to) related party	0
Combination Related Consideration	2,934
Amount incurred	0
Amount paid	0
Due from (to) related party	2,934
Liabilities assumed in the Combination
Related Party Transaction, Due to Related Parties [Roll Forward]
Due from (to) related party	0
Combination Related Consideration	6,375
Amount incurred	0
Amount paid	(6,375)
Due from (to) related party	$ 0

Related Party Arrangements - Manager Equity Plan (Narrative) (Details)	1 Months Ended	3 Months Ended
	Jul. 31, 2017 USD ($)	Mar. 31, 2018 USD ($) shares	Mar. 31, 2017 USD ($)	Dec. 31, 2017 USD ($)	Nov. 30, 2016 USD ($) investment
Related Party Transaction [Line Items]
Granted (in shares) \| shares		1,003,818
Allocated expenses included in administrative expenses		$ 3,228,000	$ 3,012,000
Securitization financing transaction, amount					$ 284,200,000
Total commitment		498,973,000		$ 179,303,000
Equity-based compensation expense		$ 285,000	$ 0
Loans held for investment, net
Related Party Transaction [Line Items]
Securitization financing transaction, amount					$ 254,700,000
Securitization financing transaction, number of loans used for collateral \| investment					10
NorthStar Income \| Senior Participations
Related Party Transaction [Line Items]
Securitization financing transaction, amount					$ 29,500,000
Securitization financing transaction, number of loans used for collateral \| investment					3
Investment in mezzanine loan
Related Party Transaction [Line Items]
Interest in investments, percent	50.00%
Mezzanine loan \| Investment in mezzanine loan
Related Party Transaction [Line Items]
Mezzanine loan investment	$ 60,000,000
Mezzanine loan	$ 180,000,000
Interest in investments, percent	33.30%
Total commitment	$ 60,000,000
CLNC Manager, LLC
Related Party Transaction [Line Items]
Granted (in shares) \| shares		978,946
Equity-based compensation expense		$ 300,000

Equity-Based Compensation - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Jan. 29, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested (in shares)	0
Equity-based compensation expense	$ 285,000	$ 0
Compensation cost not yet recognized	$ 18,700,000
Compensation cost not yet recognized, period for recognition	2 years 10 months 28 days
Class A
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)			4,000,000

Equity-Based Compensation - Summary of Awards Granted or Vested (Details)	3 Months Ended
	Mar. 31, 2018 $ / shares shares
Number of Shares [Roll Forward]
Unvested Shares at December 31, 2017 (in shares)	0
Granted (in shares)	1,003,818
Vested (in shares)	0
Forfeited (in shares)	0
Unvested shares at March 31, 2018 (Unaudited) (in shares)	1,003,818
Weighted Average Grant Date Fair Value [Roll Forward]
Unvested Shares at December 31, 2017, weighted average grant date fair value (in dollars per share) \| $ / shares	$ 0.00
Granted, weighted average grant date fair value (in dollars per share) \| $ / shares	19.39
Vested, weighted average grant date fair value (in dollars per share) \| $ / shares	0.00
Forfeited, weighted average grant date fair value (in dollars per share) \| $ / shares	0.00
Unvested shares at March 31, 2018, weighted average grant date fair value (Unaudited) (in dollars per share) \| $ / shares	$ 19.39
Restricted Stock
Number of Shares [Roll Forward]
Unvested Shares at December 31, 2017 (in shares)	0
Granted (in shares)	1,003,818
Vested (in shares)	0
Forfeited (in shares)	0
Unvested shares at March 31, 2018 (Unaudited) (in shares)	1,003,818

Stockholders' Equity - Narrative (Details) - USD ($)	3 Months Ended
Stockholders' Equity - Narrative (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for issuance	1,000,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Class A
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, shares authorized (in shares)	905,000,000	905,000,000
Stock Repurchase Program, amount authorized for repurchase	$ 300,000,000.0
Shares repurchased under Stock Repurchase Program	0
Class B-3
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, shares authorized (in shares)	45,000,000	45,000,000

Stockholders' Equity - Dividends (Details) - $ / shares				3 Months Ended
Stockholders' Equity - Dividends (Details) - $ / shares	Mar. 15, 2018	Feb. 26, 2018	Feb. 23, 2018	Mar. 31, 2018	Mar. 31, 2017
Equity [Abstract]
Dividends declared per share of common stock (in dollars per share)	$ 0.145	$ 0.145		$ 0.29	$ 0.00
Dividends paid per share of common stock (in dollars per share)	$ 0.145		$ 0.145

Noncontrolling Interests (Details) - USD ($) $ in Thousands	3 Months Ended
Noncontrolling Interests (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Mar. 31, 2017
Noncontrolling Interest [Abstract]
Net income attributable to noncontrolling interests, operating partnerships	$ 57	$ 0
Net income attributable to noncontrolling interests, investment entities	$ 2,370	$ 9,137

Fair Value - Financial Assets Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Assets:
Real estate securities, available for sale	$ 176,194	$ 0
Mortgage loans held in securitization trusts, at fair value	3,193,298	0
Liabilities:
Mortgage obligations issued by securitization trusts, at fair value	3,051,315	0
Recurring basis
Assets:
Investments in unconsolidated ventures	257,495	24,717
Real estate securities, available for sale	176,194	0
Mortgage loans held in securitization trusts, at fair value	3,193,298	0
Liabilities:
Mortgage obligations issued by securitization trusts, at fair value	3,051,315	0
Recurring basis \| Level 1
Assets:
Investments in unconsolidated ventures	0	0
Real estate securities, available for sale	0	0
Mortgage loans held in securitization trusts, at fair value	0	0
Liabilities:
Mortgage obligations issued by securitization trusts, at fair value	0	0
Recurring basis \| Level 2
Assets:
Investments in unconsolidated ventures	0	0
Real estate securities, available for sale	176,194	0
Mortgage loans held in securitization trusts, at fair value	0	0
Liabilities:
Mortgage obligations issued by securitization trusts, at fair value	3,051,315	0
Recurring basis \| Level 3
Assets:
Investments in unconsolidated ventures	257,495	24,717
Real estate securities, available for sale	0	0
Mortgage loans held in securitization trusts, at fair value	3,193,298	0
Liabilities:
Mortgage obligations issued by securitization trusts, at fair value	$ 0	$ 0

Fair Value - Changes in Fair Value of Financial Assets Measured on a Recurring Basis (Details) - Recurring basis - Level 3 - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
PE Investment
Additional information about financial assets
Beginning balance	$ 24,417	$ 0
Contributions/purchases	243,786	72,325
Distributions/paydowns	(15,946)	(49,344)
Equity in earnings	6,320	6,829
Unrealized loss in earnings	(1,082)	(5,393)
Ending balance	257,495	24,417
Mortgage obligations issued by securitization trusts
Additional information about financial assets
Beginning balance	0
Contributions/purchases	3,327,199
Distributions/paydowns	(111,181)
Equity in earnings	0
Unrealized loss in earnings	(22,720)
Ending balance	3,193,298	$ 0
Unrealized gain in earnings	$ 23,200

Fair Value - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
Fair Value - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unrealized gain on mortgage loans and obligations held in securitization trusts, net	$ 497	$ 0
PE Investment \| Level 3 \| Recurring basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unrealized loss in earnings	$ 1,082		$ 5,393
PE Investment \| Level 3 \| Recurring basis \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate	11.10%		11.10%
PE Investment \| Level 3 \| Recurring basis \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate	20.00%		12.40%
Mortgage obligations issued by securitization trusts \| Level 3 \| Recurring basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unrealized loss in earnings	$ 22,720
Mortgage obligations issued by securitization trusts \| Level 3 \| Recurring basis \| Weighted average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Weighted average expected maturity of CRE securities	6 years 2 months 16 days
Mortgage obligations issued by securitization trusts \| Level 3 \| Recurring basis \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate	9.60%
Mortgage obligations issued by securitization trusts \| Level 3 \| Recurring basis \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate	14.20%

Fair Value - Principal Amount, Carrying Value and Fair Value of Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Financial assets:
Unpaid Principal Balance	$ 1,805,636	$ 1,307,740
Financial liabilities:
Future funding commitments	68,300	19,200
Carrying Value
Financial assets:
Loans held for investment, net	1,816,218	1,300,784
Fair Value
Financial assets:
Loans held for investment, net	1,814,530	1,311,783
Securitization bonds payable, net
Financial liabilities:
Principal amount, financial liabilities	172,145	108,794
Securitization bonds payable, net \| Carrying Value
Financial liabilities:
Financial liabilities	172,113	108,794
Securitization bonds payable, net \| Fair Value
Financial liabilities:
Financial liabilities	172,113	108,974
Mortgage notes payable, net
Financial liabilities:
Principal amount, financial liabilities	929,598	284,035
Mortgage notes payable, net \| Carrying Value
Financial liabilities:
Financial liabilities	924,018	280,868
Mortgage notes payable, net \| Fair Value
Financial liabilities:
Financial liabilities	885,756	282,333
Master repurchase facilities
Financial liabilities:
Principal amount, financial liabilities	602,277	0
Master repurchase facilities \| Carrying Value
Financial liabilities:
Financial liabilities	602,277	0
Master repurchase facilities \| Fair Value
Financial liabilities:
Financial liabilities	$ 602,277	$ 0

Segment Reporting - Reportable Operating Segments (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($) segment	Mar. 31, 2017 USD ($)	Dec. 31, 2017 USD ($)
Segment Reporting [Abstract]
Number of segments \| segment	5
Segment Reporting Information [Line Items]
Net interest income	$ 30,311	$ 29,047
Property and other income	29,062	5,300
Management fee expense	(8,000)
Property operating expense	(11,719)	(1,611)
Transaction, investment and servicing expense	(30,941)	(701)
Interest expense on real estate	(6,393)	(976)
Depreciation and amortization	(18,792)	(2,285)
Administrative expense	(3,228)	(3,012)
Unrealized gain on mortgage loans and obligations held in securitization trusts, net	497	0
Other gain on investments, net	465	0
Income (loss) before equity in earnings of unconsolidated ventures and income taxes	(18,738)	25,762
Equity in earnings of unconsolidated ventures	15,788	6,038
Income tax benefit	549	223
Net income (loss)	(2,401)	32,023
Total Assets	8,120,905		$ 1,839,402
Investments in unconsolidated ventures	756,468		203,720
Loan
Segment Reporting Information [Line Items]
Net interest income	28,232	29,047
Property and other income	2,237	724
Management fee expense	0
Property operating expense	(1,223)	(537)
Transaction, investment and servicing expense	(441)	(614)
Interest expense on real estate	(223)	0
Depreciation and amortization	(677)	(97)
Administrative expense	(135)	(65)
Unrealized gain on mortgage loans and obligations held in securitization trusts, net	0
Other gain on investments, net	442
Income (loss) before equity in earnings of unconsolidated ventures and income taxes	28,212	28,458
Equity in earnings of unconsolidated ventures	10,550	4,209
Income tax benefit	816	0
Net income (loss)	39,578	32,667
Total Assets	2,590,367		1,573,714
Investments in unconsolidated ventures	179,300
CRE Debt Securities
Segment Reporting Information [Line Items]
Net interest income	2,902
Property and other income	2
Management fee expense	0
Property operating expense	0
Transaction, investment and servicing expense	0
Interest expense on real estate	0
Depreciation and amortization	0
Administrative expense	84
Unrealized gain on mortgage loans and obligations held in securitization trusts, net	(110)
Other gain on investments, net	0
Income (loss) before equity in earnings of unconsolidated ventures and income taxes	2,878
Equity in earnings of unconsolidated ventures	0
Income tax benefit	0
Net income (loss)	2,878
Total Assets	3,597,300		0
Net leased real estate
Segment Reporting Information [Line Items]
Net interest income	0	0
Property and other income	12,442	4,576
Management fee expense	0
Property operating expense	(4,106)	(1,074)
Transaction, investment and servicing expense	(10)	(87)
Interest expense on real estate	(3,498)	(976)
Depreciation and amortization	(6,570)	(2,188)
Administrative expense	(1)	0
Unrealized gain on mortgage loans and obligations held in securitization trusts, net	0
Other gain on investments, net	23
Income (loss) before equity in earnings of unconsolidated ventures and income taxes	(1,720)	251
Equity in earnings of unconsolidated ventures	0	0
Income tax benefit	0	0
Net income (loss)	(1,720)	251
Total Assets	741,861		241,271
Other
Segment Reporting Information [Line Items]
Net interest income	0	0
Property and other income	14,204	0
Management fee expense	0
Property operating expense	(6,390)	0
Transaction, investment and servicing expense	(12)	0
Interest expense on real estate	(2,672)	0
Depreciation and amortization	(11,545)	0
Administrative expense	(4)
Unrealized gain on mortgage loans and obligations held in securitization trusts, net	0
Other gain on investments, net	0
Income (loss) before equity in earnings of unconsolidated ventures and income taxes	(6,419)	0
Equity in earnings of unconsolidated ventures	5,238	1,829
Income tax benefit	(267)	223
Net income (loss)	(1,448)	2,052
Total Assets	1,148,338		24,417
Investments in unconsolidated ventures			24,400
Corporate
Segment Reporting Information [Line Items]
Net interest income	(823)	0
Property and other income	177	0
Management fee expense	(8,000)
Property operating expense	0	0
Transaction, investment and servicing expense	(30,478)	0
Interest expense on real estate	0	0
Depreciation and amortization	0	0
Administrative expense	(3,172)	2,947
Unrealized gain on mortgage loans and obligations held in securitization trusts, net	607
Other gain on investments, net	0
Income (loss) before equity in earnings of unconsolidated ventures and income taxes	(41,689)	(2,947)
Equity in earnings of unconsolidated ventures	0	0
Income tax benefit	0	0
Net income (loss)	(41,689)	$ (2,947)
Total Assets	43,039		$ 0
Intersegment Eliminations \| Corporate
Segment Reporting Information [Line Items]
Net interest income	$ 600

Segment Reporting - Revenue by Geographic Areas (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Segment Reporting Information [Line Items]
Total income by geography	$ 107,815,000	$ 46,489,000
United States
Segment Reporting Information [Line Items]
Total income by geography	107,815,000	45,590,000
Other
Segment Reporting Information [Line Items]
Total income by geography	$ 0	$ 899,000

Earnings Per Share (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($) $ / shares shares	Mar. 31, 2017 USD ($) $ / shares shares	Dec. 31, 2017 shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net income (loss)	$ (2,401)	$ 32,023
Net (income) loss attributable to noncontrolling interests:
Investment entities	(2,370)	(9,137)
Operating Partnership	57	(2,075)
Net income (loss) attributable to Colony NorthStar Credit Real Estate, Inc. common stockholders	(4,714)	20,811
Numerator:
Net (income) loss allocated to participating securities (nonvested shares)	(146)	0
Net income (loss) attributable to common stockholders	$ (4,860)	$ 20,811
Denominator:
Weighted average shares outstanding - basic and diluted \| shares	98,662,000	44,399,000
Net income (loss) per common share - basic and diluted (in dollars per share) \| $ / shares	$ (0.05)	$ 0.47
Antidilutive securities excluded from computation of earnings per share \| shares	3,075,623
Option conversion ratio	1
Class B-3
Denominator:
Common stock, shares outstanding (in shares) \| shares	44,399,000		0

Subsequent Events (Details)								1 Months Ended	3 Months Ended
Subsequent Events (Details)	May 03, 2018 $ / shares	Apr. 26, 2018 USD ($)	Apr. 23, 2018 USD ($)	Apr. 20, 2018 USD ($)	Apr. 16, 2018 $ / shares	Mar. 15, 2018 $ / shares	Feb. 26, 2018 $ / shares	Apr. 30, 2018 USD ($) loan real_estate_securities	Mar. 31, 2018 USD ($) $ / shares	Mar. 31, 2017 $ / shares	Dec. 31, 2017 USD ($)
Subsequent Event [Line Items]
Dividends declared per share of common stock (in dollars per share) \| $ / shares						$ 0.145	$ 0.145		$ 0.29	$ 0.00
Future funding commitments									$ 68,300,000		$ 19,200,000
Face value									1,805,636,000		$ 1,307,740,000
Subsequent Event
Subsequent Event [Line Items]
Number of real estate securities acquired \| real_estate_securities								2
Principal amount, real estate securities, available-for-sale								$ 18,100,000
Aggregate discount of purchased investments								$ 4,000,000
Aggregate discount of purchased investments (as a percentage)								21.80%
Loans in default \| loan								2
Loans in default, total outstanding principal balances								$ 117,000,000
Master Repurchase Agreement, Bank 1 Facility 1 \| Subsequent Event
Subsequent Event [Line Items]
Repurchase agreement term (in years)			3 years
Maximum borrowing capacity			$ 300,000,000.0
Master Repurchase Agreement, Bank 3 Facility 3 \| Subsequent Event
Subsequent Event [Line Items]
Repurchase agreement term (in years)				3 years
Maximum borrowing capacity				$ 500,000,000.0
Master Repurchase Agreement, Bank 7 Facility 1 \| Subsequent Event
Subsequent Event [Line Items]
Repurchase agreement term (in years)		3 years
Maximum borrowing capacity		$ 500,000,000.0
First mortgage loans \| Oxnard, CA First Mortgage Loan [Member] \| Subsequent Event
Subsequent Event [Line Items]
Loans held for investment, net								36,500,000
Future funding commitments								$ 1,500,000
First mortgage loans \| LIBOR \| Oxnard, CA First Mortgage Loan [Member] \| Subsequent Event
Subsequent Event [Line Items]
Contractual Interest Rate								7.50%
Interest rate after certain conditions are satisfied								5.20%
Class A \| Subsequent Event
Subsequent Event [Line Items]
Dividends declared per share of common stock (in dollars per share) \| $ / shares	$ 0.145
Annualized dividend (in dollars per share) \| $ / shares	1.74				$ 1.74
Class B-3 \| Subsequent Event
Subsequent Event [Line Items]
Dividends declared per share of common stock (in dollars per share) \| $ / shares	0.145				0.145
Annualized dividend (in dollars per share) \| $ / shares	$ 1.74				$ 1.74
Preferred Equity Investment \| Affiliated Entity
Subsequent Event [Line Items]
Face value									$ 89,100,000
Number of real estate properties									0
Sponsor invested and maintained amount									$ 87,000,000