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Investments in unconsolidated ventures ($8,764 and $10,283 at fair value, respectively)

1,226,988

1,484,796

585,994

595,305

Receivables, net

41,569

46,456

98,507

112,762

Mortgage loans held in securitization trusts, at fair value

270,680

189,470

Other assets

62,643

87,707

1,822,991

1,872,970

Total assets

7,193,588

7,414,306

Liabilities

Securitization bonds payable, net

833,671

833,153

Mortgage and other notes payable, net

1,152,851

1,256,112

Credit facilities

1,260,419

1,099,233

Due to related party (Note 10)

10,766

11,016

Accrued and other liabilities

145,956

140,424

Intangible liabilities, net

10,548

22,149

10,842

294

Escrow deposits payable

49,499

74,497

Dividends payable

13,147

13,164

Mortgage obligations issued by securitization trusts, at fair value

1,732,388

1,762,914

Total liabilities

5,220,087

5,212,956

Commitments and contingencies (Note 16)

Stockholders’ equity

Preferred stock, $0.01 par value, 50,000,000 shares authorized, no shares issued and outstanding as of March 31, 2020 and 2019

Common stock

1,284

1,285

Additional paid-in capital

2,907,796

2,909,181

Accumulated deficit

(959,695)

(819,738)

Accumulated other comprehensive income (loss)

(42,705)

28,294

Total stockholders’ equity

1,906,680

2,119,022

Noncontrolling interests in investment entities

21,141

31,631

Noncontrolling interests in the Operating Partnership

45,680

50,697

Total equity

1,973,501

2,201,350

Total liabilities and equity

7,193,588

7,414,306

Allowance for loan losses

52,194

272,624

Primary beneficiary

Assets

Cash and cash equivalents

11,965

14,109

Restricted cash

15,737

25,646

Loans and preferred equity held for investment, net

994,306

1,016,781

178,123

381,608

Receivables, net

20,668

26,044

26,638

36,323

Mortgage loans held in securitization trusts, at fair value

210,434

102,397

Other assets

24,867

26,463

1,822,991

1,872,970

Total assets

3,305,729

3,502,341

Liabilities

Securitization bonds payable, net

833,671

833,153

Mortgage and other notes payable, net

297,286

341,480

Credit facilities

24,847

23,882

Accrued and other liabilities

100,764

124,969

Intangible liabilities, net

8,751

20,230

10,842

251

Escrow deposits payable

4,128

10,485

Mortgage obligations issued by securitization trusts, at fair value

1,732,388

1,762,914

Total liabilities

$ 3,012,677

$ 3,117,364

[1]	Net of $52.2 million and $272.6 million of allowance for loan losses at March 31, 2020 and December 31, 2019, respectively. See Note 3, “Loans and Preferred Equity Held for Investments, net and Loans Held for Sale” for further details.

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Investments under fair value option	$ 8,764	$ 10,283
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	50,000,000.0	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
Common stock, shares authorized (in shares)	950,000,000	905,000,000
Common stock, shares issued (in shares)	128,366,427	128,538,703
Common stock, shares outstanding (in shares)	128,366,427	128,538,703
Class A
Common stock, shares authorized (in shares)	950,000,000.0

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Net interest income
Interest income	$ 46,104	$ 38,409
Interest expense	(20,744)	(19,292)
Interest income on mortgage loans held in securitization trusts	20,555	38,476
Interest expense on mortgage obligations issued by securitization trusts	(18,059)	(35,635)
Net interest income	27,856	21,958
Property and other income
Property operating income	52,513	63,134
Other income	9,409	177
Total property and other income	61,922	63,311
Expenses
Management fee expense	7,946	11,358
Property operating expense	22,531	28,180
Transaction, investment and servicing expense	3,134	529
Interest expense on real estate	13,078	13,607
Depreciation and amortization	17,976	27,662
Provision for loan losses	69,932	0
Impairment of operating real estate	4,126	0
Administrative expense (including $342 and $1,843 of equity-based compensation expense, respectively)	7,038	6,653
Total expenses	145,761	87,989
Other income (loss)
Unrealized gain (loss) on mortgage loans and obligations held in securitization trusts, net	(19,452)	1,029
Realized gain on mortgage loans and obligations held in securitization trusts, net	0	48
Other loss, net	(20,162)	(5,079)
Loss before equity in earnings of unconsolidated ventures and income taxes	(95,597)	(6,722)
Equity in earnings of unconsolidated ventures	17,167	21,310
Income tax benefit (expense)	(1,711)	369
Net income (loss)	(80,141)	14,957
Net (income) loss attributable to noncontrolling interests:
Investment entities	(523)	298
Operating Partnership	1,892	(347)
Net income (loss) attributable to Colony Credit Real Estate, Inc. common stockholders	$ (78,772)	$ 14,908
Net income (loss) per common share - basic and diluted (Note 18) (in dollars per share)	$ (0.62)	$ 0.11
Weighted average shares of common stock outstanding - basic and diluted (Note 18) (in shares)	128,487	127,943

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Statement [Abstract]
Share-based compensation expense	$ 342	$ 1,843

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Net income (loss)	$ (80,141)	$ 14,957
Other comprehensive income (loss)
Unrealized gain on real estate securities, available for sale	(75,029)	9,758
Change in fair value of net investment hedges	21,764	7,395
Foreign currency translation loss	(19,436)	(3,310)
Total other comprehensive income	(72,701)	13,843
Comprehensive income (loss)	(152,842)	28,800
Comprehensive (income) loss attributable to noncontrolling interests:
Comprehensive income (loss) attributable to common stockholders	(149,771)	28,427
Investment entities
Net income (loss)	523	(298)
Comprehensive (income) loss attributable to noncontrolling interests:
Comprehensive (income) loss attributable to noncontrolling interests	(523)	298
Operating Partnership
Net income (loss)	(1,892)	347
Other comprehensive income (loss)
Total other comprehensive income	(1,702)	324
Comprehensive (income) loss attributable to noncontrolling interests:
Comprehensive (income) loss attributable to noncontrolling interests	$ 3,594	$ (671)

CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ 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 Operating Partnership	Class A Common Stock	Class B-3 Common Stock
Beginning balance (in shares) at Dec. 31, 2018								83,410,000	44,399,000
Beginning balance at Dec. 31, 2018	$ 2,845,202	$ 2,706,905	$ 2,899,353	$ (193,327)	$ (399)	$ 72,683	$ 65,614	$ 834	$ 444
Increase (Decrease) in Stockholders' Equity
Contributions	24					24
Distributions	(394)					(394)
Adjustments related to the Combination (in shares)								0	0
Adjustments related to the Combination	0	0	0	0		0	0	$ 0	$ 0
Conversion of Class B-3 common stock (in shares)								44,399,000	44,399,000
Conversion of Class B-3 common stock	444							$ 444	$ (444)
Issuance and amortization of equity-based compensation (in shares)								800,000
Issuance and amortization of equity-based compensation	1,843	1,843	1,835					$ 8
Other comprehensive income (loss)	13,843	13,519			13,519		324
Dividends and distributions declared	(57,066)	(55,726)		(55,726)			(1,340)
Shares canceled for tax withholding on vested stock awards (in shares)								(96,000)
Shares canceled for tax withholding on vested stock awards	(1,497)	(1,497)	(1,496)	0	0	0	0	$ (1)
Reallocation of equity		(23)	(23)				23
Net income (loss)	14,957	14,908		14,908		(298)	347
Ending balance (in shares) at Mar. 31, 2019								128,513,000	0
Ending balance at Mar. 31, 2019	2,816,912	2,679,929	2,899,669	(234,145)	13,120	72,015	64,968	$ 1,285	$ 0
Beginning balance (in shares) at Dec. 31, 2019								128,539,000	0
Beginning balance at Dec. 31, 2019	2,201,350	2,119,022	2,909,181	(819,738)	28,294	31,631	50,697	$ 1,285	$ 0
Increase (Decrease) in Stockholders' Equity
Contributions	0					0
Distributions	(11,013)					(11,013)
Conversion of Class B-3 common stock (in shares)								0	0
Conversion of Class B-3 common stock	0							$ 0	$ 0
Issuance and amortization of equity-based compensation (in shares)								0
Issuance and amortization of equity-based compensation	342	342	342					$ 0
Other comprehensive income (loss)	(72,701)	(70,999)			(70,999)		(1,702)
Dividends and distributions declared	(39,463)	(38,541)		(38,541)			(922)
Shares canceled for tax withholding on vested stock awards (in shares)								(173,000)
Shares canceled for tax withholding on vested stock awards	(1,687)	(1,687)	(1,686)	0	0	0	0	$ (1)
Reallocation of equity		(41)	(41)				41
Net income (loss)	(80,141)	(78,772)		(78,772)		523	(1,892)
Ending balance (in shares) at Mar. 31, 2020								128,366,000	0
Ending balance at Mar. 31, 2020	1,973,501	$ 1,906,680	$ 2,907,796	$ (959,695)	$ (42,705)	$ 21,141	$ 45,680	$ 1,284	$ 0
Increase (Decrease) in Stockholders' Equity
Effect of CECL adoption (see Note 2) \| Accounting Standards Update 2016-13	$ 23,186

CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical)	3 Months Ended
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical)	Mar. 31, 2019 $ / shares
Class A
Dividends declared per share of common stock (in dollars per share)	$ 0.44
Class B-3
Dividends declared per share of common stock (in dollars per share)	$ 0.15

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net income (loss)	$ (80,141)	$ 14,957
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Equity in earnings of unconsolidated ventures	(17,167)	(21,310)
Depreciation and amortization	17,976	27,662
Straight-line rental income	(1,426)	(1,732)
Amortization of above/below market lease values, net	(404)	(612)
Amortization of premium/accretion of discount and fees on investments and borrowings, net	(3,992)	(2,582)
Amortization of deferred financing costs	3,582	2,029
Amortization of right-of-use lease assets and operating lease liabilities	24	25
Paid-in-kind interest added to loan principal, net of interest received	(3,171)	(3,258)
Distributions of cumulative earnings from unconsolidated ventures	9,326	18,492
Unrealized gain on mortgage loans and obligations held in securitization trusts, net	19,452	(1,029)
Realized (gain) loss on mortgage loans and obligations held in securitization trusts, net	0	(48)
Provision for loan losses	69,932	0
Impairment of operating real estate	4,126	0
Amortization of equity-based compensation	342	1,843
Mortgage notes above/below market value amortization	(255)	87
Deferred income tax (benefit) expense	(788)	(2,693)
Other loss	20,452	0
Changes in assets and liabilities:
Receivables, net	6,511	(4,200)
Deferred costs and other assets	16,680	4,778
Due to related party	(250)	(1,169)
Other liabilities	(3,605)	6,438
Net cash provided by operating activities	57,204	37,678
Cash flows from investing activities:
Acquisition, origination and funding of loans and preferred equity held for investment, net	(37,452)	(241,693)
Repayment on loans and preferred equity held for investment	160,069	172,686
Repayment on loans held for sale	450	0
Proceeds from sale of real estate	160,830	0
Acquisition of and additions to real estate, related intangibles and leasing commissions	(11,325)	(6,242)
Investments in unconsolidated ventures	(16,748)	(5,182)
Proceeds from sale of investments in unconsolidated ventures	1,795	34,475
Distributions in excess of cumulative earnings from unconsolidated ventures	16,528	65,836
Repayment of principal in mortgage loans held in securitization trusts	6,577	0
Net receipts on settlement of derivative instruments	19,637	1,638
Deposit on investments	0	(352)
Change in escrow deposits	(24,998)	(2,322)
Net cash provided by investing activities	275,363	18,844
Cash flows from financing activities:
Distributions paid on common stock	(38,558)	(55,629)
Distributions paid on common stock to noncontrolling interests	(922)	(1,340)
Shares canceled for tax withholding on vested stock awards	(1,688)	0
Borrowings from mortgage notes	2,280	22,174
Repayment of mortgage notes	(76,585)	(1,509)
Borrowings from credit facilities	249,991	714,615
Repayment of credit facilities	(88,804)	(695,260)
Repayment of securitization bonds	0	(27,709)
Repayment of mortgage obligations issued by securitization trusts	(6,577)	0
Payment of deferred financing costs	(1,600)	(1,593)
Contributions from noncontrolling interests	0	24
Distributions to noncontrolling interests	(11,013)	(394)
Net cash provided by (used in) financing activities	26,524	(46,621)
Effect of exchange rates on cash, cash equivalents and restricted cash	(1,409)	(7)
Net increase (decrease) in cash, cash equivalents and restricted cash	357,682	9,894
Cash, cash equivalents and restricted cash - beginning of period	195,684	187,463
Cash, cash equivalents and restricted cash - end of period	553,366	197,357
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect [Abstract]
Total cash, cash equivalents and restricted cash	553,366	197,357
Supplemental Cash Flow Information [Abstract]
Consolidation of securitization trust (VIE asset/liability additions)	0	24,393
Accrual of distribution payable	(17)	19,083
Foreclosure of loans held for investment, net of provision for loan losses	0	105,437
Right-of-use lease assets and operating lease liabilities	(730)	16,959
PE Investments sale proceeds receivable	0	14,453
Conversion of Class B-3 common stock to Class A common stock	$ 0	$ 444

Business and Organization	3 Months Ended
Business and Organization	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business and Organization	Business and Organization Colony Credit Real Estate, Inc. (together with its consolidated subsidiaries, 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”) (including the junior tranches thereof, 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 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 elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”), beginning with its taxable year ended December 31, 2018. Effective June 25, 2018, the Company changed its name from Colony NorthStar Credit Real Estate, Inc. to Colony Credit Real Estate, Inc. Also on June 25, 2018, Colony NorthStar, Inc. changed its name to Colony Capital, Inc. 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, 2020, the Company owned 97.7% of the OP, as its sole managing member. The remaining 2.3% is owned 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 (“CLNY OP”), a Delaware limited liability company and the operating company of Colony Capital. Colony Capital 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) CLNY OP contributed and conveyed to the Company a select portfolio of assets and liabilities (the “CLNY OP Contributed Portfolio”) of CLNY OP (the “CLNY OP Contribution”), (ii) NRF RED REIT Corp., a Maryland corporation and indirect subsidiary of CLNY 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 CLNY OP Contributed Portfolio, the “CLNY Contributed Portfolio”) of RED REIT (the “RED REIT Contribution” and, together with the CLNY OP Contribution, the “CLNY Contributions”), (iii) NorthStar Real Estate Income Trust, Inc. (“NorthStar I”), a publicly registered non-traded REIT sponsored and managed by a subsidiary of Colony Capital, merged with and into the Company, with the Company surviving the merger (the “NorthStar I Merger”), (iv) NorthStar Real Estate Income II, Inc. (“NorthStar II”), a publicly registered non-traded REIT sponsored and managed by a subsidiary of Colony Capital, 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 CLNY 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 CLNY 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, par value $0.01 per share (the “Class A common stock”), began trading on the New York Stock Exchange (“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. Segment Realignment During the third quarter of 2019, the Company realigned the business and reportable segment information to reflect how the Chief Operating Decision Makers (“CODM”) regularly review and manage the business. Refer to Note 17, “Segment Reporting” for further detail. Impact of COVID-19 At the time of preparation of the first quarter 2020 financial statements, the world is facing a global pandemic, the coronavirus disease 2019, or COVID-19. Efforts to address the pandemic, such as social distancing, closures or reduced capacity of retail and service outlets, hotels, factories and public venues, often mandated by governments, are having a significant impact on the global economy and financial markets across major industries, including many sectors of real estate. Specifically, the Company's loans and preferred equity held for investment and real estate investments in the hospitality and retail sectors have experienced or anticipate a myriad of challenges, including, but not limited to: significant declines in operating cash flows at the Company’s retail and hospitality properties which in turn affect their ability to meet debt service and covenant requirements on investment-level debt (non-recourse to the Company); flexible lease payment terms sought by tenants; potential payment defaults on the Company's loans and preferred equity held for investment; and a distressed market affecting real estate values in general. As the timing of many of the closures and ensuing economic turmoil did not occur until late in the first quarter of 2020, the effects of COVID-19 on the Company's business were not material and adverse in the first quarter of 2020. However, the Company anticipates more pronounced and material effects on the Company’s financial condition and results of operations in future periods, beginning with the second quarter of 2020. The sharp decline and volatility in equity and debt markets, and the challenges faced by the Company as a result of the economic fallout from COVID-19 have affected valuation of the Company’s financial assets, carried at fair value, and also represent indicators of potential impairment on certain loans and preferred equity held for investment and held for sale at the end of the first quarter of 2020. The Company’s consideration and assessment of impairment is discussed further in Note 3, “Loans and Preferred Equity Held for Investment, net and Loans Held for Sale” and Note 14, “Fair Value”. If a general economic downturn resulting from efforts to contain COVID-19 persists, it could have a prolonged material and negative impact on the Company’s financial condition and results of operations. At this time, as the extent and duration of the increasingly broad effects of COVID-19 on the global economy remain unclear, it is difficult for the Company to assess and estimate the impact on the Company's results of operations with any meaningful precision. Accordingly, any estimates of the effects of COVID-19 as reflected and/or discussed in these financial statements are based upon the Company's best estimates using information known to the Company at this time, and such estimates may change in the near term, the effects of which could be material.

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

The significant accounting policies of the Company are described below. The accounting policies of the Company’s unconsolidated ventures are substantially similar to those of the Company.

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, 2020, or for any other future period. These interim financial statements should be read in conjunction with the audited consolidated financial statements 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, 2019.

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.

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.

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Company and its controlled subsidiaries. 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 it has a controlling financial interest by first considering if an entity meets the definition of a variable interest entity (“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

Variable Interest Entities—A VIE is an entity that either (i) lacks sufficient equity to finance its activities without additional subordinated financial support from other parties; (ii) whose equity holders lack the characteristics of a controlling financial interest; or (iii) is established with non-substantive voting rights. A VIE is consolidated by its primary beneficiary, which is defined as the party who has a controlling financial interest in the VIE through (a) power to direct the activities of the VIE that most significantly affect the VIE’s economic performance, and (b) obligation to absorb losses or right to receive benefits of the VIE that could be significant to the VIE. The Company also considers interests held by its related parties, including de facto agents. The Company assesses whether it is a member of a related party group that collectively meets the power and benefits criteria and, if so, whether the Company is most closely associated with the VIE. In performing the related party analysis, the Company considers both qualitative and quantitative factors, including, but not limited to: the amount and characteristics of its investment relative to the related party; the Company’s and the related party’s ability to control or significantly influence key decisions of the VIE including consideration of involvement by de facto agents; the obligation or likelihood for the Company or the related party to fund operating losses of the VIE; and the similarity and significance of the VIE’s business activities to those of the Company and the related party. The determination of whether an entity is a VIE, and whether the Company is the primary beneficiary, may involve significant judgment, including the determination of which activities most significantly affect the entities’ performance, and estimates about the current and future fair values and performance of assets held by the VIE.

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.

As of March 31, 2020, 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, 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 the 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 the 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 defined and discussed below) and certain operating real estate properties that have noncontrolling interests. The noncontrolling interests in the operating real estate properties represent third party joint venture partners with ownership ranging from 3.5% to 20.0%. These noncontrolling interests do not have substantive kick-out nor 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 consolidating parent entity of an Investing VIE, nor to any of the Company’s other consolidated entities.

As of March 31, 2020, the Company held subordinate tranches of securitization trusts in two 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. As a result, 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 expenses of the Investing VIEs are presented in the consolidated financial statements of the Company although the Company legally owns the subordinate tranches of the securitization trusts only. 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 5, “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 are presented separately on the consolidated statements of operations, and the assets and liabilities of the Investing VIEs are separately presented as “Mortgage loans held in securitization trusts, at fair value” and “Mortgage obligations issued by securitization trusts, at fair value,” respectively, on the consolidated balance sheets. Refer to Note 14, “Fair Value” for further discussion.

The Company has adopted guidance issued by the Financial Accounting Standards Board (“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 fair value of the assets of its Investing VIEs. Refer to Note 14, “Fair Value” for further discussion.

Unconsolidated VIEs

As of March 31, 2020, 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. 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, 2020.

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, 2020 (dollars in thousands):



	Carrying Value		Maximum Exposure to Loss
Real estate securities, available for sale	$	179,572	$	238,080
Investments in unconsolidated ventures	499,549		531,730
Loans and preferred equity held for investment, net	17,587		17,587
Total assets	$	696,708	$	787,397

The Company did not provide financial support to the unconsolidated VIEs during the three months ended March 31, 2020. As of March 31, 2020, there were no explicit arrangements or implicit variable interests that could require the Company to provide financial support to the unconsolidated VIEs. The maximum exposure to loss of real estate securities, available for sale was determined as the amortized cost, which represents the purchase price of the investments adjusted by any unamortized premiums or discounts as of March 31, 2020. The maximum exposure to loss of investments in unconsolidated ventures and loans and preferred equity held for investment, net was determined as the carrying value plus any future funding commitments. Refer to Note 3, “Loans and Preferred Equity Held for Investment, net and Loans Held for Sale” and Note 16, “Commitments and Contingencies” for further discussion.

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 Capital. 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. 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.

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 components of OCI include unrealized gain (loss) on CRE debt securities available for sale for which the fair value option was not elected, gain (loss) on derivative instruments used in the Company’s risk management activities used for economic hedging purposes (“designated hedges”), and gain (loss) on foreign currency translation.

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 the measurement alternative allowing the Company to measure both the financial assets and financial 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

Definition of a Business—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 costs, 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.

Asset Acquisitions—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. 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 the acquisition of assets are included in the cost basis of the assets acquired.

Business Combinations—The Company accounts for acquisitions that qualify as business combinations by applying the acquisition method. Transaction costs related to the 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.

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, 2020 or December 31, 2019. 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 and Preferred Equity Held for Investment

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

Loans and Preferred Equity Held for Investment

Loans and preferred equity that the Company has the intent and ability to hold for the foreseeable future are classified as held for investment. Originated loans and preferred equity 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 and preferred equity are recorded at amortized cost, or unpaid principal balance plus purchase premium or less unamortized discount. Costs to purchase loans and preferred equity are expensed as incurred.

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

The Company has debt investments in its portfolio that contain a payment-in-kind (“PIK”) provision. Contractual PIK interest, which represents contractually deferred interest added to the loan balance that is due at the end of the loan term, is generally recorded on an accrual basis to the extent such amounts are expected to be collected. The Company will generally cease accruing PIK interest if there is insufficient value to support the accrual or management does not expect the borrower to be able to pay all principal and interest due.

Nonaccrual—Accrual of interest income is suspended on nonaccrual loans and preferred equity investments. Loans and preferred equity investments 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 and preferred equity investments are placed on nonaccrual status. Interest collected is recognized on a cash basis by crediting income when received; or if ultimate collectability of loan and preferred equity principal is uncertain, interest collected is recognized using a cost recovery method by applying interest collected as a reduction to loan and preferred equity carrying value. Loans and preferred equity investments may be restored to accrual status when all principal and interest are current and full repayment of the remaining contractual principal and interest are reasonably assured.

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.

At March 31, 2020, the Company classified seven loans in its Legacy, Non-Strategic Portfolio as held for sale. See Note 3, “Loans and Preferred Equity Held for Investment, net and Loans Held for Sale” for further detail.

Acquisition, Development and Construction (“ADC”) 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 forgone 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, and 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 is 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, is 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 48 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		1 to 15 years
Tenant improvements		Lesser of the useful life or remaining term of the lease
Furniture, fixtures and equipment		2 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 real estate for impairment generally on an individual property basis. If an impairment indicator exists, the Company evaluates the undiscounted future net cash flows that are expected to be generated by the property, including any estimated proceeds from the eventual disposition of the property. If multiple outcomes are under consideration, the Company may apply a probability-weighted approach to the impairment analysis. Based upon the analysis, if the carrying value of a property exceeds its undiscounted future net cash flows, an impairment loss is recognized for the excess of the carrying value of the property over the estimated fair value of the property. In evaluating and/or measuring impairment, the Company considers, 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. Another key consideration in this assessment is the Company’s assumptions about the highest and best use of its real estate investments and its intent and ability to hold them for a reasonable period that would allow for the recovery of their carrying values. If such assumptions change and the Company shortens its expected hold period, this may result in the recognition of impairment losses.

Real Estate 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. At the time a sale is consummated, the excess, if any, of sale price less selling costs over carrying value of the real estate is recognized as a gain.

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.

At March 31, 2020, the Company classified several of its properties in its Legacy, Non-Strategic Portfolio as held for sale. See Note 6, “Real Estate, net and Real Estate Held for Sale,” Note 17, “Segment Reporting” and Note 19, “Subsequent Events” for further detail.

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 generally recognized 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. If the fair value of the property is lower than the carrying value of the loan, the difference is recognized as provision for loan loss and the cumulative loss allowance on the loan is charged off. The Company periodically evaluates foreclosed properties for subsequent decrease in fair value, which is recorded as an 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 the assets and liabilities of its consolidated Investing VIEs, and as a result, any unrealized gains (losses) on the consolidated Investing VIEs 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, 2020, the Company held subordinate tranches of two securitization trusts, which represent the Company’s retained interest in the securitization trusts, which the Company consolidates under U.S. GAAP. Refer to Note 5, “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 loss on mortgage loans and obligations held in securitization trust, net 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.

Investments in Unconsolidated Ventures

A noncontrolling, unconsolidated ownership interest in an entity may be accounted for using one of (i) equity method where applicable; (ii) fair value option if elected; (iii) fair value through earnings if fair value is readily determinable, including election of net asset value (“NAV”) practical expedient where applicable; or (iv) for equity investments without readily determinable fair values, the measurement alternative to measure at cost adjusted for any impairment and observable price changes, as applicable.

Fair value changes of equity method investments under the fair value option are recorded in earnings from investments in unconsolidated ventures. Fair value changes of other equity investments, including adjustments for observable price changes under the measurement alternative, are recorded in other gain (loss).

Equity Method Investments

The Company accounts for investments under the equity method of accounting if it has the ability to exercise significant influence over the operating and financial policies of an entity, but does 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-proportionate 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 are reported as investing activities in the statement of cash flows under the cumulative earnings approach.

At March 31, 2020 and December 31, 2019, the Company’s investments in unconsolidated joint ventures consisted of investments in PE Investments, senior loans, mezzanine loans and preferred equity held in joint ventures, as well as ADC arrangements accounted for as equity method investments.

Impairment

Evaluation of impairment applies to equity method investments and equity investments under the measurement alternative. If indicators of impairment exist, the Company will first estimate the fair value of its investment. In assessing fair value, the Company generally considers, among others, the estimated enterprise value of the investee or fair value of the investee’s underlying net assets, including net cash flows to be generated by the investee as applicable.

For investments under the measurement alternative, if carrying value of the investment exceeds its fair value, an impairment is deemed to have occurred.

For equity method investments, further consideration is made if a decrease in value of the investment is other-than-temporary to determine if impairment loss should be recognized. Assessment of OTTI involves management judgment, including, but not limited to, consideration of the investee’s financial condition, operating results, business prospects and creditworthiness, the Company’s ability and intent to hold the investment until recovery of its carrying value, or a significant and prolonged decline in traded price of the investee’s equity security. If management is unable to reasonably assert that an impairment is temporary or believes that the Company may not fully recover the carrying value of its investment, then the impairment is considered to be other-than-temporary.

Investments that are other-than-temporarily impaired are written down to their estimated fair value. Impairment loss is recorded in earnings from investments in unconsolidated ventures for equity method investments and in other gain (loss) for investments under the measurement alternative.

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. An indefinite-lived intangible is 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.

Lease Intangibles—Identifiable intangibles recognized in acquisitions of operating real estate properties generally include in-place leases, above- or below-market leases and deferred leasing costs, all of which have finite lives. 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 are 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 estimate 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 the component meets the definition of a participating interest with 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 requires 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, (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.

Derivative Instruments and Hedging Activities

The Company uses derivative instruments to manage its foreign currency risk and interest rate risk. The Company does not use derivative instruments for speculative or trading purposes. All derivative instruments are recorded at fair value and included in other assets or other liabilities on a gross basis on the balance sheet. The accounting for changes in fair value of derivatives depends upon whether or not the Company has elected to designate the derivative in a hedging relationship and the derivative qualifies for hedge accounting. The Company has economic hedges that have not been designated for hedge accounting.

Changes in fair value of derivatives not designated as accounting hedges are recorded in the statement of operations in other gain (loss), net.

For designated accounting hedges, the relationships between hedging instruments and hedged items, risk management objectives and strategies for undertaking the accounting hedges as well as the methods to assess the effectiveness of the derivative prospectively and retrospectively, are formally documented at inception. Hedge effectiveness relates to the amount by which the gain or loss on the designated derivative instrument exactly offsets the change in the hedged item attributable to the hedged risk. If it is determined that a derivative is not expected to be or has ceased to be highly effective at hedging the designated exposure, hedge accounting is discontinued.

Cash Flow Hedges—The Company uses interest rate caps and swaps to hedge its exposure to interest rate fluctuations in forecasted interest payments on floating rate debt. The effective portion of the change in fair value of the derivative is recorded in accumulated other comprehensive income, while hedge ineffectiveness is recorded in earnings. If the derivative in a cash flow hedge is terminated or the hedge designation is removed, related amounts in accumulated other comprehensive income (loss) are reclassified into earnings.

Net Investment Hedges—The Company uses foreign currency hedges to protect the value of its net investments in foreign subsidiaries or equity method investees whose functional currencies are not U.S. dollars. Changes in the fair value of derivatives used as hedges of net investment in foreign operations, to the extent effective, are recorded in the cumulative translation adjustment account within accumulated other comprehensive income (loss).

At the end of each quarter, the Company reassesses the effectiveness of its net investment hedges and as appropriate, dedesignates the portion of the derivative notional amount that is in excess of the beginning balance of its net investments as undesignated hedges.

Release of accumulated other comprehensive income related to net investment hedges occurs upon losing a controlling financial interest in an investment or obtaining control over an equity method investment. Upon sale, complete or substantially complete liquidation of an investment in a foreign subsidiary, or partial sale of an equity method investment, the gain or loss on the related net investment hedge is reclassified from accumulated other comprehensive income to earnings.

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 noncancellable 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 related 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 the 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. Upon sale, complete or substantially complete liquidation of a foreign subsidiary, or upon partial sale of a foreign equity method investment, the translation adjustment associated with the investment, or a proportionate share related to the portion of equity method investment sold, is reclassified from accumulated other comprehensive income or loss into earnings.

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 the 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), net on the consolidated statements of operations.

Disclosures of non-U.S. dollar amounts to be recorded in the future are translated using exchange rates in effect at the date of the most recent balance sheet presented.

Equity-Based Compensation

Equity-classified stock awards granted to executive officers and both independent and non-independent directors are based on the closing price of the Class A common stock on the grant date and recognized on a straight-line basis over the requisite service period of the awards.

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 (“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

For U.S. federal income tax purposes, the Company elected to be taxed as a REIT beginning with its taxable year ended December 31, 2018. To qualify as a REIT, the Company must continually satisfy tests concerning, among other things, the real estate qualification of sources of its income, the real estate composition and values of its assets, the amounts it distributes to stockholders and the diversity of ownership of its stock.

To the extent that the Company qualifies as a REIT, it generally will not be subject to U.S. federal income tax to the extent of its distributions to stockholders. 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 also holds investments in Europe which are subject to tax in each local jurisdiction.

The Company made joint elections to treat certain subsidiaries as taxable REIT subsidiaries (“TRSs”) which may be subject to taxation by U.S. federal, state and local authorities. In general, a TRS of the Company may perform non-customary services for tenants, hold assets that the Company cannot hold directly and 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 during 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.

The Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was passed on March 27, 2020. Among other things, the CARES Act temporarily removed the 80% limitation on the amount of taxable income that can be offset with a net operating loss (“NOL”) for 2019 and 2020 and allowed for a carryback of net operating losses generated in years 2018 through 2020 to each of the preceding five years. The Company is still evaluating the impact of the CARES Act on its NOLs and did not book any adjustments related to the CARES Act for the quarter ended March 31, 2020.

For the three months ended March 31, 2020 and March 31, 2019, the Company recorded income tax expense of $1.7 million and income tax benefit of $0.4 million, respectively.

Accounting Standards Adopted in 2020

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 Company adopted ASU 2016-13 using the modified retrospective method on January 1, 2020.

The existing incurred loss model has been 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 available-for-sale (“AFS”) debt securities, unrealized credit losses are 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 has been 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 was amended to conform to the new impairment models for HTM and AFS debt securities.

Upon adoption of ASU 2016-13 on January 1, 2020 the Company recorded the following (dollars in thousands):



	Impact of ASU 2016-13 Adoption
Assets:
CECL reserve on Loans and preferred equity held for investment, net	$	21,093
Liabilities:
CECL reserve on Accrued and other liabilities	2,093
Total Impact of ASU 2016-13 adoption on Accumulated deficit	$	23,186

The following discussion highlights changes to the Company’s accounting policies as a result of this adoption.

CECL reserve

The CECL reserve for the Company’s financial instruments carried at amortized cost and off-balance sheet credit exposures, such as loans, loan commitments and trade receivables represents a lifetime estimate of expected credit losses. Factors considered by the Company when determining the CECL reserve include loan-specific characteristics such as loan-to-value (“LTV”) ratio, vintage year, loan term, property type, occupancy and geographic location, financial performance of the borrower, expected payments of principal and interest, as well as internal or external information relating to past events, current conditions and reasonable and supportable forecasts.

The CECL reserve is measured on a collective (pool) basis when similar risk characteristics exist for multiple financial instruments. If similar risk characteristics do not exist, the Company measures the CECL reserve on an individual instrument basis. The determination of whether a particular financial instrument should be included in a pool can change over time. If a financial asset’s risk characteristics change, the Company evaluates whether it is appropriate to continue to keep the financial instrument in its existing pool or evaluate it individually.

In measuring the CECL reserve for financial instruments that share similar risk characteristics, the Company primarily applies a probability of default (“PD”)/loss given default (“LGD”) model for instruments that are collectively assessed, whereby the CECL reserve is calculated as the product of PD, LGD and exposure at default (“EAD”). The Company’s model principally utilizes historical loss rates derived from a commercial mortgage backed securities database with historical losses from 1998 through March 2020 provided by a third party, Trepp LLC, forecasting the loss parameters using a scenario-based statistical approach over a reasonable and supportable forecast period of twelve months, followed by a straight-line reversion period of twelve-months back to average historical losses.

For financial instruments assessed outside of the PD/LGD model on an individual basis, including when it is probable that the Company will be unable to collect the full payment of principal and interest on the instrument, the Company applies a discounted cash flow (“DCF”) methodology. For financial instruments where the borrower is experiencing financial difficulty based on the Company’s assessment at the reporting date and the repayment is expected to be provided substantially through the operation or sale of the collateral, the Company may elect to use as a practical expedient the fair value of the collateral at the reporting date when determining the provision for loan losses.

In developing the CECL reserve for its loans and preferred equity held for investment, the Company considers the risk rating of each loan and preferred equity as a key credit quality indicator. The risk ratings are based on a variety of factors, including, without limitation, underlying real estate performance and asset value, values of comparable properties, durability and quality of property cash flows, sponsor experience and financial wherewithal, and the existence of a risk-mitigating loan structure. Additional key considerations include loan-to-value ratios, debt service coverage ratios, loan structure, real estate and credit market dynamics, and risk of default or principal loss. Based on a five-point scale, the Company’s loans and preferred equity held for investment are rated “1” through “5,” from less risk to greater risk, and the ratings are updated quarterly. At the time of origination or purchase, loans and preferred equity held for investment are ranked as a “3” and will move accordingly going forward based on the ratings which are defined as follows:


1.	Very Low Risk-The loan is performing as agreed. The underlying property performance has exceeded underwritten expectations with very strong net operating income (”NOI”), debt service coverage ratio, debt yield and occupancy metrics. Sponsor is investment grade, very well capitalized, and employs very experienced management team.


2.	Low Risk-The loan is performing as agreed. The underlying property performance has met or exceeds underwritten expectations with high occupancy at market rents, resulting in consistent cash flow to service the debt. Strong sponsor that is well capitalized with experienced management team.


3.	Average Risk-The loan is performing as agreed. The underlying property performance is consistent with underwriting expectations. The property generates adequate cash flow to service the debt, and/or there is enough reserve or loan structure to provide time for sponsor to execute the business plan. Sponsor has routinely met its obligations and has experience owning/operating similar real estate.

High Risk/Delinquent/Potential for Loss-The loan is in excess of 30 days delinquent and/or has a risk of a principal loss. The underlying property performance is behind underwritten expectations. Loan covenants may require occasional waivers/modifications. Sponsor has been unable to execute its business plan and local market fundamentals have deteriorated. Operating cash flow is not sufficient to service the debt and debt service payments may be coming from sponsor equity/loan reserves.

Impaired/Defaulted/Loss Likely-The loan is in default or a default is imminent, and has a high risk of a principal loss, or has incurred a principal loss. The underlying property performance is significantly worse than underwritten expectation and sponsor has failed to execute its business plan. The property has significant vacancy and current cash flow does not support debt service. Local market fundamentals have significantly deteriorated resulting in depressed comparable property valuations versus underwriting.

The Company also considers qualitative and environmental factors, including, but not limited to, economic and business conditions, nature and volume of the loan portfolio, lending terms, volume and severity of past due loans, concentration of credit and changes in the level of such concentrations in its determination of the CECL reserve.

The Company has elected to not measure a CECL reserve for accrued interest receivable as it is reversed against interest income when a loan or preferred equity investment is placed on nonaccrual status. Loans and preferred equity investments are charged off against the provision for loan losses when all or a portion of the principal amount is determined to be uncollectible.

Changes in the CECL reserve for the Company’s financial instruments are recorded in provision for loan losses on the Statement of Operations with a corresponding offset to the loans and preferred equity held for investment or as a component of other liabilities for future loan fundings recorded on the Company’s consolidated balance sheets. During the three months ended March 31, 2020, the Company recorded $69.9 million in provision for loan losses on the Company’s consolidated statements of operations, with a corresponding offset to the loans and preferred equity held for investment of $67.6 million and $2.3 million in other liabilities for future loan fundings on the Company’s consolidated balance sheets. The Company’s $69.9 million provision for loan losses recorded during the three months ended March 31, 2020 consists of $39.1 million related to two of the Company’s hospitality loans, $29.0 million determined by the PD/LGD model and $1.8 million related to the discounted payoff of loans during the quarter. See Note 3, “Loans and Preferred Equity Held for Investment, net and Loans Held for Sale” for further detail.

Troubled Debt Restructuring (“TDR”)—The Company classifies an individual financial instrument as a TDR when it has a reasonable expectation that the financial instrument’s contractual terms will be modified in a manner that grants concession to the borrower who is experiencing financial difficulty. 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 financial instrument. The Company determines the CECL reserve for financial instruments that are TDRs individually.

Fair Value Disclosures—In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurements. The ASU requires new disclosures of changes in unrealized gains and losses in other comprehensive income for recurring Level 3 fair value measurements of instruments held at the balance sheet date, as well as the range and weighted average or other quantitative information, if more relevant, of significant unobservable inputs for recurring and nonrecurring Level 3 fair values. Certain previously required disclosures are eliminated, specifically around the valuation process required for Level 3 fair values, policy for timing of transfers between levels of the fair value hierarchy, as well as amounts and reason for transfers between Levels 1 and 2. Additionally, the new guidance clarifies or modifies certain existing disclosures, including clarifying that information about measurement uncertainty of Level 3 fair values should be as of the reporting date and requiring disclosures of the timing of liquidity events for investments measured under the NAV practical expedient, but only if the investee has communicated this information or has announced it publicly. The provisions on new disclosures and modification to disclosure of Level 3 measurement uncertainty are to be applied prospectively, while all other provisions are to be applied retrospectively. The Company adopted ASU No. 2018-13 on January 1, 2020.

Related Party Guidance for VIEs—In November 2018, the FASB issued ASU No. 2018-17, Targeted Improvements to Related Party Guidance for Variable Interest Entities. The ASU amends the VIE guidance to align, throughout the VIE model, the evaluation of a decision maker's or service provider's fee held by a related party whether or not they are under common control, in both the assessment of whether a fee qualifies as a variable interest and the determination of a primary beneficiary. Specifically, a decision maker or service provider considers interests in a VIE held by a related party under common control only if it has a direct interest

in the related party under common control and considers such indirect interest in the VIE held by the related party under common control on a proportionate basis, rather than its entirety. Transition is generally on a modified retrospective basis, with the cumulative effect adjusted to retained earnings at the beginning of the earliest period presented. The Company adopted ASU No. 2018-17 on January 1, 2020, with no transitional impact upon adoption.

Reference Rate Reform-In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The guidance in Topic 848 is optional, the election of which provides temporary relief for the accounting effects on contracts, hedging relationships and other transactions impacted by the transition from interbank offered rates (such as London Interbank Offered Rate, or LIBOR) that are expected to be discontinued by the end of 2021 to alternative reference rates (such as Secured Overnight Financing Rate, or SOFR). Modification of contractual terms to effect the reference rate reform transition on debt, leases, derivatives and other contracts is eligible for relief from modification accounting and accounted for as a continuation of the existing contract. Topic 848 is effective upon issuance through December 31, 2022, and may be applied retrospectively to January 1, 2020. The Company has elected to apply the hedge accounting expedients related to probability and assessment of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives, which preserves existing derivative treatment and presentation. The Company may elect other practical expedients or exceptions as applicable over time as reference rate reform activities occur.

Future Application of Accounting Standards

Income Tax Accounting—In December 2019, the FASB issued ASU No. 2019-12, Simplifying Accounting for Income Taxes. The ASU simplifies accounting for income taxes by eliminating certain exceptions to the general approach in ASC 740, Income Taxes, and clarifies certain aspects of the guidance for more consistent application. The simplifications relate to intraperiod tax allocations when there is a loss in continuing operations and a gain outside of continuing operations, accounting for tax law or tax rate changes and year-to-date losses in interim periods, recognition of deferred tax liability for outside basis difference when investment ownership changes, and accounting for franchise taxes that are partially based on income. The ASU also provides new guidance that clarifies the accounting for transactions resulting in a step-up in tax basis of goodwill, among other changes. Transition is generally prospective, other than the provision related to outside basis difference which is on a modified retrospective basis with cumulative effect adjusted to retained earnings at the beginning of the period adopted, and franchise tax provision which is on either full or modified retrospective. ASU No. 2019-12 is effective January 1, 2021, with early adoption permitted in an interim period, to be applied to all provisions. The Company is currently evaluating the impact of this new guidance.

Accounting for Certain Equity Investments—In January 2020, the FASB issued ASU No. 2020-01, Clarifying the Interactions between Topic 321 Investments-Equity Securities, Topic 323-Investments Equity Method and Joint Ventures, and Topic 815-Derivatives and Hedging. The ASU clarifies that if as a result of an observable transaction, an equity investment under the measurement alternative is transitioned into equity method and vice versa, an equity method investment is transitioned into measurement alternative, the investment is to be remeasured immediately before and after the transaction, respectively. The ASU also clarifies that certain forward contracts or purchased options to acquire equity securities that are not deemed to be derivatives or in-substance common stock will generally be measured using the fair value principles of ASC 321 before settlement or exercise, and that an entity should not be considering how it will account for the resulting investments upon eventual settlement or exercise. ASU No. 2020-01 is to be applied prospectively, effective January 1, 2021, with early adoption permitted in an interim period. The Company is currently evaluating the impact of this new guidance.

Loans and Preferred Equity Held for Investment, net and Loans Held for Sale

3 Months Ended

Mar. 31, 2020

Receivables [Abstract]

Loans and Preferred Equity Held for Investment, net and Loans Held for Sale

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



	March 31, 2020								December 31, 2019
	Unpaid Principal Balance		Carrying Value			Weighted Average Coupon⁽¹⁾		Weighted Average Maturity in Years	Unpaid Principal Balance		Carrying Value			Weighted Average Coupon⁽¹⁾		Weighted Average Maturity in Years
Fixed rate
Mezzanine loans	$	126,807	$	125,993		12.7	%	4.8	$	223,395	$	222,503		12.8	%	4.2
Preferred equity interests	116,901		116,856			12.5	%	6.6	115,384		115,313			12.5	%	6.9
Other loans⁽²⁾	12,731		12,621			15.0	%	4.2	12,572		12,448			15.0	%	4.4
	256,439		255,470						351,351		350,264
Variable rate
Senior loans	1,135,358		1,130,218			5.6	%	3.9	1,462,467		1,457,738			6.0	%	3.8
Securitized loans⁽³⁾	1,006,495		1,002,705			5.1	%	4.0	1,006,495		1,002,696			5.2	%	4.2
Mezzanine loans	14,959		15,079			10.7	%	2.3	38,110		38,258			11.4	%	2.0
	2,156,812		2,148,002						2,507,072		2,498,692
	2,413,251		2,403,472						2,858,423		2,848,956

Allowance for loan losses	NA		(52,194		)				NA		(272,624		)
Loans and preferred equity held for investment, net	$	2,413,251	$	2,351,278					$	2,858,423	$	2,576,332

_________________________________________


(1)	Calculated based on contractual interest rate.


(2)	Includes one corporate term loan secured by the borrower’s limited partnership interests in a fund at March 31, 2020 and December 31, 2019.


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

As of March 31, 2020, the weighted average maturity, including extensions, of loans and preferred equity investments was 4.1 years.

The Company had $8.8 million and $9.8 million of interest receivable related to its loans and preferred equity held for investment, net as of March 31, 2020 and December 31, 2019, respectively. This is included in receivables, net on the Company’s consolidated balance sheets.

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



	Carrying Value
Balance at January 1, 2020	$	2,576,332
Acquisitions/originations/additional funding	37,452
Loan maturities/principal repayments	(176,021		)
Transfer to loans held for sale	(16,625		)
Discount accretion/premium amortization	2,215
Capitalized interest	3,171
Provision for loan losses⁽¹⁾⁽²⁾	(69,686		)
Effect of CECL adoption⁽³⁾	(21,093		)
Charge-off	15,533
Balance at March 31, 2020	$	2,351,278

_________________________________________


(1)	Provision for loan losses excludes $0.2 million determined by the Company’s PD/LGD model for unfunded commitments reported on the consolidated statement of operations, with a corresponding offset to other liabilities recorded on the Company’s consolidated balance sheets.


(2)	Includes $28.8 million related to the Company’s PD/LGD model, $36.8 million recorded on four NY hospitality loans and $2.3 million related to the Midwest hospitality loan both of which were evaluated individually and $1.8 million related to the discounted payoff of loans during the quarter. See further discussion in “Nonaccrual and Past Due Loans and Preferred Equity.”


(3)	Calculated by the Company’s PD/LGD model upon CECL adoption on January 1, 2020. See Note 2, “Summary of Significant Accounting Polices” for further details.

Nonaccrual and Past Due Loans and Preferred Equity

Loans and preferred equity 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. At March 31, 2020, other than the NY hospitality loans and the Midwest hospitality loan discussed below, all other loans and preferred equity held for investment remain current on interest payments.

In March 2018, the borrower on the Company’s four NY hospitality loans in its Legacy, Non-Strategic Portfolio failed to make all required interest payments and the loans were placed on nonaccrual status. These four loans are secured by the same collateral. During 2018, the Company recorded $53.8 million of provision for loan losses to reflect the estimated value to be recovered from the borrower following a sale. During 2019, the Company recorded an additional provision for loan loss of $154.3 million based on significant deterioration in the NY hospitality market, feedback from the sales process and the estimated value to be recovered from the borrower following a potential sale. During the three months ended March 31, 2020 the significant detrimental impact of COVID-19 on the U.S. hospitality industry further contributed to the deterioration of the Company’s four NY hospitality loans and as such the Company recorded an additional provision for loan losses of $36.8 million. On April 22, 2020, the Company completed a discounted payoff of the NY hospitality loans and related investment interests.

Within its Legacy, Non-Strategic Portfolio, the Company has other loans secured by regional malls, that it has been closely monitoring, as follows:

•

The Company placed one loan secured by a regional mall (“Midwest Regional Mall”) on non-accrual status during 2019 as collectability of the principal was uncertain; as such, interest collected is recognized using the cost recovery method by applying interest collected as a reduction to loan carrying value. The Company recorded $10.6 million of impairment related to Midwest Regional Mall during 2019. Additionally, this loan was transferred to held for sale during 2019 and remains held for sale as of March 31, 2020.

•

During 2018, the Company recorded $8.8 million of provision for loan losses on one loan secured by a regional mall (“Northeast Regional Mall B”) to reflect the estimated fair value of the collateral. During 2019, the Company recognized additional provision for loan losses of $10.5 million on Northeast Regional Mall B. The additional provisions were based on then-current and prospective leasing activity to reflect the estimated fair value of the collateral. During the three months ended March 31, 2020, the Northeast Regional Mall was sold. The Company received $9.2 million in gross proceeds and recognized a gain of $1.8 million.


•	Also, during 2019, the Company separately recognized provision for loan losses of $18.5 million on two loans secured by one regional mall (“West Regional Mall”) to reflect the estimated fair value of the collateral. Subsequent to March 31, 2020, the West Regional Mall loan was sold. The company received $23.5 million in gross proceeds and will recognize a gain of $6.8 million.

•

Furthermore, during 2019, the Company recognized a $26.7 million provision for loan losses on three loans to two separate borrowers (“South Regional Mall A” and “South Regional Mall B”) to reflect the estimated fair value of the collateral. During the three months ended March 31, 2020, the Company accepted a discounted payoff of South Regional Mall A. The Company received $22.0 million in gross proceeds and recognized a loss of $1.6 million. Additionally, during the three months ended March 31, 2020, South Regional Mall B was sold. The Company received $13.5 million in gross proceeds and recognized a gain of $8.7 million.

Additionally, within its Core Portfolio, the Company placed one loan secured by a hotel (“Midwest Hospitality”) on non-accrual status due to a borrower default during the fourth quarter of 2019. During the three months ended March 31, 2020 the Company recorded a specific $2.3 million provision for loan loss on the Midwest Hospitality loan to reflect the estimated fair value of the collateral, which was based on feedback from the sales process and the estimated value to be recovered from the borrower following a potential sale. The Company is sweeping cash from the hotel to amortize the unpaid principal balance of the loan.

The following table provides an aging summary of loans and preferred equity held for investment at carrying values before allowance for loan losses, if any (dollars in thousands):



	Current or Less Than 30 Days Past Due		30-59 Days Past Due⁽¹⁾		60-89 Days Past Due		90 Days or More Past Due⁽¹⁾⁽²⁾		Total Loans
March 31, 2020	$	2,373,626	$	—	$	—	$	29,846	$	2,403,472
December 31, 2019	2,558,505		32,322		—		258,129		2,848,956

_________________________________________


(1)	At December 31, 2019, 30-59 days past due includes one loan (Midwest Hospitality) that was placed on non-accrual status during the fourth quarter of 2019 following a borrower default. At March 31, 2020, the Midwest Hospitality loan is 90 days or more past due.

(2)

At December 31, 2019, 90 days or more past due loans includes four NY hospitality loans to the same borrower and secured by the same collateral with combined carrying value before allowance for loan losses of $258.1 million on nonaccrual status. All other loans in this table remain current on interest payments. The four loans were classified as held for sale at March 31, 2020 and sold in April 2020.

Impaired Loans - 2019

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. Impaired loans include predominantly loans under nonaccrual, performing and nonperforming TDRs, as well as loans in maturity default. The following table presents impaired loans at December 31, 2019 (dollars in thousands):



	Unpaid Principal Balance⁽¹⁾		Gross Carrying Value
	Unpaid Principal Balance⁽¹⁾		With Allowance for Loan Losses⁽²⁾		Without Allowance for Loan Losses		Total⁽²⁾		Allowance for Loan Losses
December 31, 2019	$	408,058	$	377,421	$	32,322	$	409,743	$	272,624

_________________________________________


(1)	Includes four NY hospitality loans to the same borrower and secured by the same collateral with combined unpaid principal balance of $257.2 million and gross carrying value of $258.1 million on nonaccrual status. All other loans included in this table remain current on interest payments. The four loans were classified as held for sale at March 31, 2020 and sold in April 2020.


(2)	Includes unpaid principal balance plus any applicable exit fees less net deferred loan fees.

Upon adoption of ASU 2016-13 the incurred loss model has been replaced with a lifetime current expected credit loss model for the Company’s loans carried at amortized cost, and as such all loans in the Company’s portfolio maintain an allowance for loan losses at March 31, 2020. See Note 2 “Summary of Significant Accounting Policies—Accounting Standards Adopted in 2020—Credit Losses” for further details.

The average carrying value and interest income recognized on impaired loans for the three months ended March 31, 2019 were as follows (dollars in thousands):



	Three Months Ended March 31,
	2019
Average carrying value before allowance for loan losses	$	390,376
Interest income	1,476

Allowance for Loan Losses

As of December 31, 2019, the allowance for loan losses was $272.6 million related to $409.7 million in carrying value of loans.

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



	Three Months Ended March 31,
	2020			2019
Allowance for loan losses at beginning of period	$	272,624		$	109,328
Effect of CECL adoption⁽¹⁾	21,093			—
Provision for loan losses⁽²⁾⁽³⁾	69,686			—
Charge-off	(15,533		)	(31,696		)
Transfer to loans held for sale	(295,676		)	—
Allowance for loan losses at end of period	$	52,194		$	77,632

_________________________________________


(1)	Calculated by the Company’s PD/LGD model upon CECL adoption on January 1, 2020. See Note 2, “Summary of Significant Accounting Policies” for further details.


(2)	Provision for loan losses excludes $0.2 million calculated by the Company’s PD/LGD model for unfunded commitments reported on the consolidated statement of operations, with a corresponding offset to other liabilities recorded on the Company’s consolidated balance sheets.


(3)	Includes $28.8 million related to the Company’s PD/LGD model, $36.8 million recorded on four NY hospitality loans and $2.3 million related to the Midwest hospitality loan, both of which were evaluated individually, and $1.8 million related to the discounted payoff of loans during the quarter. See further discussion in “Nonaccrual and Past Due Loans and Preferred Equity.”

Loans and Preferred Equity Held for Sale

The following table summarizes the Company’s assets held for sale related to loans and preferred equity (dollars in thousands):



	March 31, 2020		December 31, 2019
Assets
Loans and preferred equity held for investment, net	$	21,191	$	5,016
Total assets held for sale	$	21,191	$	5,016

At March 31, 2020, the Company has classified seven loans in its Legacy, Non-Strategic Portfolio as held for sale.

There were no assets held for sale that constituted discontinued operations as of March 31, 2020 and December 31, 2019.

Credit Quality Monitoring

Loan and preferred equity 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 loan and preferred equity 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, 2020, there were five loans to two borrowers with contractual payments past due, which were the four NY hospitality loans in our Legacy, Non-Strategic Portfolio and the Midwest Hospitality loan in our Core Portfolio, as previously discussed. An additional loan, Midwest Regional Mall, was placed on non-accrual status during the fourth quarter of 2019 as collectability of the principal is uncertain; as such, interest collected is recognized using the cost recovery method by applying interest collected as a reduction to loan carrying value. The NY hospitality and Midwest Regional Mall loans were classified as held for sale as of March 31, 2020. The remaining loans and preferred equity investments were performing in accordance with the contractual terms of their governing documents and were categorized as performing loans. There were five loans held for investment with contractual payments past due as of December 31, 2019. For the three months ended March 31, 2020, no debt investment contributed more than 10.0% of interest income.

The following table provides a summary by carrying values before any allowance for loan losses of the Company’s loans and preferred equity held for investment by year of origination and credit quality risk ranking (dollars in thousands). Refer to Note 2, “Summary of Significant Accounting Policies—Accounting Standards Adopted in 2020—Credit Losses” for loans risk ranking definitions.



	2020		2019		2018		2017		2016		Prior		Total
Senior loans
Risk Rankings:
3	$	—	$	377,975	$	292,224	$	33,581	$	—	$	—	$	703,780
4	—		798,721		603,534		—		—		—		1,402,255
5	—		—		—		—		—		29,846		29,846
Total Senior loans	—		1,176,696		895,758		33,581		—		29,846		2,135,881

Mezzanine loans
Risk Rankings:
3	—		—		—		—		—		—		—
4	—		69,674		51,785		12,120		—		4,534		138,113
Total Mezzanine loans	—		69,674		51,785		12,120		—		4,534		138,113

Preferred equity interests and other
Risk Rankings:
4	—		12,621		116,857		—		—		—		129,478
Total Preferred equity interests and other	—		12,621		116,857		—		—		—		129,478

Total Loans and preferred equity held for investment	$	—	$	1,258,991	$	1,064,400	$	45,701	$	—	$	34,380	$	2,403,472

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, 2020, assuming the terms to qualify for future fundings, if any, have been met, total gross unfunded lending commitments was $236.7 million. Refer to Note 16, “Commitments and Contingencies” for further details. During the three months ended March 31, 2020, the Company recorded a $2.3 million allowance for lending commitments in accrued and other liabilities on its consolidated balance sheets in accordance with the new credit losses accounting standard No. 2016-13. See Note 2, “Summary of Significant Accounting Policies” for further details.

Investments in Unconsolidated Ventures

3 Months Ended

Mar. 31, 2020

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, 2020		December 31, 2019
Equity method investments	$	577,230	$	585,022
Investments under fair value option	8,764		10,283
Investments in Unconsolidated Ventures	$	585,994	$	595,305

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 Colony Capital 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, 2020 and December 31, 2019, respectively.

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



		Carrying Value
Investments	Description	March 31, 2020		December 31, 2019
ADC investments⁽¹⁾⁽²⁾	Interests in three 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	$	59,047	$	59,576
Other investment ventures⁽¹⁾	Interests in nine investments, each with less than $171.5 million carrying value at March 31, 2020	518,183		525,446

_________________________________________

(1)

The Company’s ownership interest in ADC investments and other investment ventures varies and 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.

Impairment

During the year ended December 31, 2019, the Company recognized its proportionate share of impairment loss totaling $14.7 million on one senior loan secured by a regional mall (“Southeast Regional Mall”) of which the Company owned 50.0% of the joint venture. Southeast Regional Mall was included in the Company’s Legacy, Non-Strategic Portfolio prior to its sale during the three months ended March 31, 2020. The Company received $13.4 million in gross sales proceeds and recognized a gain of $1.6 million.

Also during the year ended December 31, 2019, the Company recorded its proportionate share of impairment loss totaling $16.1 million on two loans and an equity partnership interest secured by residential development projects included in its Legacy, Non-Strategic Portfolio. The impairment losses are as a result of revised property sales expectations. The Company also recorded a $17.6 million impairment loss related to an equity participation interest in a joint venture, within its Core Portfolio, to reflect the estimated fair value of the collateral.

The impairment recorded on each of these investments is included in equity in earnings of unconsolidated ventures on the Company’s consolidated statements of operations.

Investments under Fair Value Option

Private Funds

The Company elected to account for its limited partnership interests, which range from 0.1% to 16.1%, 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.

During the three months ended March 31, 2020, the Company received the final $1.8 million in proceeds related to the sale of its PE Investments.

Investments in Unconsolidated Ventures Held for Sale

During the three months ended March 31, 2020, the Company classified one investment in an unconsolidated venture it its Legacy, Non-Strategic Portfolio with a carrying value of $11.5 million as held for sale.

Real Estate Securities, Available for Sale

3 Months Ended

Mar. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Real Estate Securities, Available for Sale

Investments in CRE Securities

CRE securities are composed 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, 2020 and December 31, 2019 (dollars in thousands):



																Weighted Average
		Principal Amount⁽¹⁾		Total Discount			Amortized Cost		Cumulative Unrealized on Investments					Fair Value		Coupon⁽²⁾		Unleveraged Current Yield
As of Date:	Count	Principal Amount⁽¹⁾		Total Discount			Amortized Cost		Gain		(Loss)			Fair Value		Coupon⁽²⁾		Unleveraged Current Yield
March 31, 2020	43	$	292,284	$	(54,204	)	$	238,080	$	—	$	(58,508	)	$	179,572	3.19	%	7.12	%
December 31, 2019	43	292,284		(55,981		)	236,303		17,084		(563		)	252,824		3.19	%	7.12	%

_________________________________________


(1)	CRE securities serve as collateral for financing transactions including carrying value of $178.3 million as of March 31, 2020 for the CMBS Credit Facilities (refer to Note 9, “Debt,” for further detail). The remainder is unleveraged.


(2)	All CMBS are fixed rate.

The Company recorded an unrealized loss in OCI of $75.0 million for the three months ended March 31, 2020 and an unrealized gain in OCI of $9.8 million for the three months ended March 31, 2019. As of March 31, 2020, the Company held 43 securities with a carrying value of $179.6 million and an unrealized loss of $58.5 million, which were not in an unrealized loss position for a period of greater than 12 months. 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 the amortized cost basis, which may be at expected maturity.

As of March 31, 2020, the weighted average contractual maturity of CRE securities was 30.8 years with an expected maturity of 6.2 years.

The Company had $0.7 million and $0.7 million of interest receivable related to its real estate securities, available for sale as of March 31, 2020 and December 31, 2019, respectively. This is included in receivables, net on the Company’s consolidated balance sheets.

Investments in Investing VIEs

The Company is the directing certificate holder of two 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.

In July 2019, the Company sold its retained investments in the subordinate tranches of one securitization trust for $33.4 million in total proceeds. As a result of the sale, the Company deconsolidated one of the securitization trusts with gross assets and liabilities of approximately $1.2 billion and $1.2 billion, respectively.

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, 2020, the mortgage loans and the related mortgage obligations held in the securitization trusts had an unpaid principal balance of $1.8 billion and $1.6 billion, respectively. As of December 31, 2019, the mortgage loans and the related mortgage obligations held in the securitization trusts had an unpaid principal balance of $1.8 billion and $1.6 billion, respectively. As of March 31, 2020, across the two consolidated securitization trusts, the underlying collateral consisted of 115 underlying commercial mortgage loans, with a weighted average coupon of 4.5% and a weighted average loan to value ratio of 56.7%.

The following table presents the assets and liabilities recorded on the consolidated balance sheets attributable to the securitization trust as of March 31, 2020 and December 31, 2019 (dollars in thousands):



	March 31, 2020		December 31, 2019
Assets
Mortgage loans held in a securitization trust, at fair value	$	1,822,991	$	1,872,970
Receivables, net	7,081		7,020
Total assets	$	1,830,072	$	1,879,990
Liabilities
Mortgage obligations issued by a securitization trust, at fair value	$	1,732,388	$	1,762,914
Accrued and other liabilities	6,247		6,267
Total liabilities	$	1,738,635	$	1,769,181

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 $90.6 million and $110.1 million as of March 31, 2020 and December 31, 2019, respectively, and approximates the fair value of the Company’s retained investments in the subordinate tranches of the securitization trusts, which are eliminated in consolidation. Refer to Note 14, “Fair Value” for a description of the valuation techniques used to measure fair value of assets and liabilities of the Investing VIEs.

The below table presents net income attributable to the Company’s common stockholders for the three months ended March 31, 2020 and 2019 generated from the Company’s investments in the subordinate tranches of the securitization trusts (dollars in thousands):



	Three Months Ended March 31,
	2020			2019
Statement of Operations
Interest expense	$	(185	)	$	(263	)
Interest income on mortgage loans held in securitization trusts	20,555			38,476
Interest expense on mortgage obligations issued by securitization trusts	(18,059		)	(35,635		)
Net interest income	2,311			2,578
Administrative expense	(515		)	(359		)
Unrealized gain (loss) on mortgage loans and obligations held in securitization trusts, net	(19,452		)	1,029
Realized gain on mortgage loans and obligations held in securitization trusts, net	—			48
Net income attributable to Colony Credit Real Estate, Inc. common stockholders	$	(17,656	)	$	3,296

Real Estate, net and Real Estate Held for Sale

3 Months Ended

Mar. 31, 2020

Real Estate [Abstract]

Real Estate, net and Real Estate Held for Sale

The following table presents the Company’s net lease portfolio, net, as of March 31, 2020, and December 31, 2019 (dollars in thousands):



	March 31, 2020			December 31, 2019
Land and improvements	$	200,742		$	209,693
Buildings, building leaseholds, and improvements	860,681			899,889
Tenant improvements	23,543			25,077
Construction-in-progress	1,026			415
Subtotal	$	1,085,992		$	1,135,074
Less: Accumulated depreciation	(68,977		)	(63,995		)
Less: Impairment⁽¹⁾	(23,911		)	(23,911		)
Net lease portfolio, net	$	993,104		$	1,047,168

_________________________________________


(1)	See Note 14, “Fair Value,” for discussion of impairment of real estate.

The following table presents the Company’s portfolio of real estate included in its Legacy, Non-Strategic Portfolio, including foreclosed properties, as of March 31, 2020 and December 31, 2019 (dollars in thousands):



	March 31, 2020			December 31, 2019
Land and improvements	$	60,994		$	91,997
Buildings, building leaseholds, and improvements	346,439			536,046
Tenant improvements	24,708			38,230
Furniture, fixtures and equipment	179			3,183
Construction-in-progress	4,665			6,325
Subtotal	$	436,985		$	675,781
Less: Accumulated depreciation	(30,685		)	(46,079		)
Less: Impairment⁽¹⁾	(172,416		)	(192,074		)
Other portfolio, net	$	233,884		$	437,628

_________________________________________


(1)	See Note 14, “Fair Value,” for discussion of impairment of real estate.

For the three months ended March 31, 2020, the Company had no single property with rental and other income equal to or greater than 10.0% of total revenue.

At March 31, 2020 and December 31, 2019, the Company held foreclosed properties which are included in real estate, net with a carrying value of $3.1 million and $50.7 million, respectively. At March 31, 2020 and December 31, 2019, the Company held foreclosed properties in assets held for sale of $92.3 million and $57.9 million, respectively.

Depreciation Expense

Depreciation expense on real estate was $12.0 million and $19.9 million for the three months ended March 31, 2020 and March 31, 2019, respectively.

Property Operating Income

For the three months ended March 31, 2020 and 2019, the components of property operating income were as follows (dollars in thousands):



	Three Months Ended March 31,
	2020		2019
Lease revenues⁽¹⁾
Minimum lease revenue	$	41,958	$	44,528
Variable lease revenue	6,649		6,656
	$	48,607	$	51,184
Hotel operating income	3,501		11,334
	$	52,108	$	62,518

_________________________________________


(1)	Excludes net amortization income related to above and below-market leases of $0.8 million and $1.2 million for the three months ended March 31, 2020, respectively.

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 noncancellable operating leases, excluding variable lease revenue of tenant reimbursements, to be received over the next five years and thereafter as of March 31, 2020 (dollars in thousands):



Remainder of 2020	$	87,398
2021	106,896
2022	99,485
2023	84,071
2024	73,324
2025 and thereafter	466,713
Total⁽¹⁾	$	917,887

_________________________________________


(1)	Excludes minimum future rents for real estate that is classified as held for sale totaling $40.9 million through 2046.

The following table presents approximate future minimum rental income under noncancellable operating leases to be received over the next five years and thereafter as of December 31, 2019 (dollars in thousands):



2020	$	120,967
2021	113,170
2022	102,314
2023	85,367
2024	71,714
2025 and thereafter	448,812
Total	$	942,344

The rental properties owned at March 31, 2020 are leased under noncancellable operating leases with current expirations ranging from 2020 to 2038, 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 noncancellable operating ground leases as lessee or sublessee with expiration dates through 2055. Rents on certain ground leases are paid directly by the tenants. Ground rent expense for the three months ended March 31, 2020 and 2019 was approximately $0.8 million for both periods.

Refer to Note 16, “Commitments and Contingencies” for the details of future minimum rental payments on noncancellable ground lease on real estate as of March 31, 2020.

Real Estate Asset Acquisitions

The following table summarizes the Company’s real estate asset acquisitions for the year ended December 31, 2019 (dollars in thousands):



					Purchase Price Allocation
Acquisition Date	Property Type and Location	Number of Buildings	Purchase Price⁽¹⁾		Land and Improvements⁽²⁾		Building and Improvements⁽²⁾		Furniture, Fixtures and Equipment		Lease Intangible Assets⁽²⁾		Other Assets		Other Liabilities
Year Ended December 31, 2019
June	Retail - Massachusetts⁽³⁾	3	$	21,919	$	9,294	$	6,598	$	—	$	5,256	$	1,538	$	(767	)
January	Various - in U.S.⁽³⁾	28	105,437		38,145		66,413		—		879		3,223		(3,223		)
			$	127,356	$	47,439	$	73,011	$	—	$	6,135	$	4,761	$	(3,990	)

_________________________________________


(1)	Dollar amounts of purchase price and allocation to assets acquired and liabilities assumed are translated using foreign exchange rate as of the respective dates of acquisitions, where applicable.


(2)	Useful life of real estate acquired is 4 to 33 years for buildings, 1 to 20 years for site improvements, 1 to 27 years for tenant improvements, 5 to 7 years for furniture, fixtures and equipment, and 1 to 27 years for lease intangibles.


(3)	Represents assets acquired by the Company through foreclosure.

Real Estate Held for Sale

The following table summarizes the Company’s assets and related liabilities held for sale related to real estate (dollars in thousands):



	March 31, 2020		December 31, 2019
Assets
Real estate, net	$	229,252	$	178,564
Deferred leasing costs and intangible assets, net	8,722		5,890
Total assets held for sale	$	237,974	$	184,454

Liabilities
Intangible liabilities, net	$	10,842	$	294
Total liabilities related to assets held for sale	$	10,842	$	294

During the three months ended March 31, 2020, the Company classified several properties in its Legacy, Non-Strategic Portfolio as held for sale.

There were no assets held for sale that constituted discontinued operations as of March 31, 2020 and December 31, 2019.

Real Estate Sales

During the three months ended March 31, 2020, the Company completed the sale of six properties, including three office, one hotel, one multifamily and one manufactured housing for a total gross sales price of $172.6 million and a total loss on sale of $3.6 million. All properties were included in the Company’s Legacy, Non-Strategic Portfolio.

The real estate sold during the three months ended March 31, 2020 did not constitute discontinued operations.

Refer to Note 19, “Subsequent Events” for further detail on additional real estate sales.

Deferred Leasing Costs and Other Intangibles

3 Months Ended

Mar. 31, 2020

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

Deferred Leasing Costs and Other Intangibles

e Company’s deferred leasing costs, other intangible assets and intangible liabilities, excluding those related to assets held for sale, at March 31, 2020 and December 31, 2019 are as follows (dollars in thousands):



	March 31, 2020
	Carrying Amount		Accumulated Amortization			Net Carrying Amount
Deferred Leasing Costs and Intangible Assets
In-place lease values	$	98,820	$	(33,841	)	$	64,979
Deferred leasing costs	40,575		(13,593		)	26,982
Above-market lease values	13,045		(6,499		)	6,546
	$	152,440	$	(53,933	)	$	98,507
Intangible Liabilities
Below-market lease values	$	19,492	$	(8,944	)	$	10,548



	December 31, 2019
	Carrying Amount		Accumulated Amortization			Net Carrying Amount
Deferred Leasing Costs and Intangible Assets
In-place lease values	$	115,139	$	(39,093	)	$	76,046
Deferred leasing costs	42,345		(13,637		)	28,708
Above-market lease values	14,318		(6,310		)	8,008
	$	171,802	$	(59,040	)	$	112,762
Intangible Liabilities
Below-market lease values	$	32,652	$	(10,503	)	$	22,149

The following table summarizes the amortization of deferred leasing costs, intangible assets and intangible liabilities for the three months ended March 31, 2020 and 2019 (dollars in thousands):



	Three Months Ended March 31,
	2020			2019
Above-market lease values	$	(832	)	$	(1,013	)
Below-market lease values	1,236			1,625
Net increase (decrease) to property operating income	$	404		$	612

In-place lease values	$	4,350		$	5,474
Deferred leasing costs	1,647			2,139
Other intangibles	(24		)	119
Amortization expense	$	5,973		$	7,732

The following table presents the amortization of deferred leasing costs, intangible assets and intangible liabilities, excluding those related to assets and liabilities held for sale, for each of the next five years and thereafter as of March 31, 2020 (dollars in thousands):




	2020			2021			2022			2023			2024			2025 and thereafter			Total
Above-market lease values	$	1,844		$	1,672		$	1,351		$	696		$	516		$	467		$	6,546
Below-market lease values	(3,347		)	(4,043		)	(2,875		)	(178		)	(44		)	(61		)	(10,548		)
Net increase (decrease) to property operating income	$	(1,503	)	$	(2,371	)	$	(1,524	)	$	518		$	472		$	406		$	(4,002	)

In-place lease values	$	9,632		$	10,269		$	7,500		$	4,680		$	3,737		$	29,161		$	64,979
Deferred leasing costs	4,712			5,047			4,252			3,086			1,863			8,022			26,982
Amortization expense	$	14,344		$	15,316		$	11,752		$	7,766		$	5,600		$	37,183		$	91,961

Restricted Cash, Other Assets and Accrued and Other Liabilities

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Restricted Cash, Other Assets and Accrued and Other Liabilities

The following table presents a summary of restricted cash as of March 31, 2020 and December 31, 2019 (dollars in thousands):



	March 31, 2020		December 31, 2019
Restricted cash:
Margin pledged as collateral	$	83,401	$	19,536
Borrower escrow deposits	49,499		74,496
Real estate escrow reserves	15,132		18,020
Capital expenditure reserves	7,029		8,882
Working capital and other reserves	3,231		4,198
Tenant lockboxes	1,229		933
Total	$	159,521	$	126,065

The following table presents a summary of other assets as of March 31, 2020 and December 31, 2019 (dollars in thousands):



	March 31, 2020		December 31, 2019
Other assets:
Right-of-use lease asset	$	24,255	$	25,480
Prepaid taxes and deferred tax assets	22,440		21,989
Deferred financing costs, net - credit facilities	7,815		8,382
Prepaid expenses	6,568		5,311
Investment deposits and pending deal costs	935		20,779
Other assets	621		1,644
Derivative asset	9		4,122
Total	$	62,643	$	87,707

The following table presents a summary of accrued and other liabilities as of March 31, 2020 and December 31, 2019 (dollars in thousands):



	March 31, 2020		December 31, 2019
Accrued and other liabilities:
Derivative liability	$	33,344	$	19,133
Current and deferred tax liability	28,679		31,510
Operating lease liability	24,295		25,495
Accounts payable, accrued expenses and other liabilities	23,273		28,278
Interest payable	17,103		16,259
Prepaid rent and unearned revenue	14,464		16,744
Tenant security deposits	2,459		3,005
Unfunded CECL loan allowance	2,339		—
Total	$	145,956	$	140,424

Debt

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Debt

The following table presents debt as of March 31, 2020 and December 31, 2019 (dollars in thousands):



							March 31, 2020				December 31, 2019
	Capacity ($)		Recourse vs. Non-Recourse⁽¹⁾	Final Maturity	Contractual Interest Rate		Principal Amount⁽²⁾		Carrying Value⁽²⁾		Principal Amount⁽²⁾		Carrying Value⁽²⁾
Securitization bonds payable, net
CLNC 2019-FL1⁽³⁾			Non-recourse	Aug-35	LIBOR + 1.59%		$	840,423	$	833,671	$	840,423	$	833,153
Subtotal securitization bonds payable, net							840,423		833,671		840,423		833,153

Mortgage and other notes payable, net
Net lease 6⁽⁴⁾			Non-recourse	Oct-27	4.45%		23,990		23,990		24,117		24,117
Net lease 5⁽⁵⁾			Non-recourse	Nov-26	4.45%		3,406		3,317		3,422		3,329
Net lease 4⁽⁵⁾			Non-recourse	Nov-26	4.45%		7,349		7,157		7,384		7,184
Net lease 3⁽⁵⁾			Non-recourse	Jun-21	4.00%		12,364		12,296		12,450		12,368
Net lease 6⁽⁵⁾			Non-recourse	Jul-23	LIBOR + 2.15%		1,550		1,510		1,658		1,615
Net lease 5⁽⁴⁾			Non-recourse	Aug-26	4.08%		31,677		31,406		31,821		31,539
Net lease 1⁽⁵⁾⁽⁶⁾			Non-recourse	Nov-26	4.45%		18,492		18,007		18,579		18,076
Net lease 1⁽⁷⁾			Non-recourse	Mar-28	4.38%		12,166		11,716		12,221		11,758
Net lease 4⁽⁴⁾			Non-recourse	Apr-21⁽⁸⁾	LIBOR + 2.50%		74,916		74,916		74,916		74,845
Net lease 1⁽⁴⁾			Non-recourse	Jul-25	4.31%		250,000		247,090		250,000		246,961
Net lease 2⁽⁴⁾⁽⁹⁾			Non-recourse	Jun-25	3.91%		152,768		154,934		181,952		184,532
Net lease 3⁽⁴⁾			Non-recourse	Sep-33	4.77%		200,000		198,541		200,000		198,521
Other real estate 4⁽⁵⁾			Non-recourse	Dec-23	4.84%		42,705		43,152		42,925		43,407
Other real estate 2^(5)(10)			Non-recourse	Dec-23	4.94%		—		—		42,443		42,851
Other real estate 8⁽⁵⁾			Non-recourse	Jan-24	5.15%		15,764		16,270		15,819		16,324
Other real estate 10^(5)(11)			Non-recourse	Dec-20	5.34%		11,683		11,879		11,744		11,939
Other real estate 9⁽⁵⁾			Non-recourse	Nov-26	3.98%		23,774		23,022		23,885		23,133
Other real estate 1⁽⁵⁾			Non-recourse	Oct-24	4.47%		108,311		109,019		108,719		109,475
Other real estate 3⁽⁵⁾			Non-recourse	Jan-25	4.30%		74,803		74,148		75,256		74,554
Other real estate 5^(5)(10)			Non-recourse	Apr-23	LIBOR + 4.00%		—		—		33,498		32,801
Other real estate 6^(5)(12)			Non-recourse	Apr-24	LIBOR + 2.95%		21,500		20,922		21,500		20,825
Loan 9⁽¹³⁾			Non-recourse	Jun-24	LIBOR + 3.00%		69,559		69,559		65,958		65,958
Subtotal mortgage and other notes payable, net							1,156,777		1,152,851		1,260,267		1,256,112

Bank credit facility
Bank credit facility⁽¹⁴⁾	$	560,000	Recourse	Feb-23⁽¹⁵⁾	LIBOR + 2.25%		340,000		340,000		113,500		113,500
Subtotal bank credit facility							340,000		340,000		113,500		113,500

Master repurchase facilities
Bank 1 facility 3	$	400,000	Limited Recourse⁽¹⁶⁾	Apr-23⁽¹⁷⁾	LIBOR + 1.93%	(18)	109,404		109,404		106,309		106,309
Bank 2 facility 3	200,000		Limited Recourse⁽¹⁶⁾	Oct-22⁽¹⁹⁾	LIBOR + 2.50%	(18)	22,750		22,750		22,750		22,750
Bank 3 facility 3	600,000		Limited Recourse⁽¹⁶⁾	Apr-22	LIBOR + 2.19%	(18)	222,147		222,147		265,633		265,633
Bank 7 facility 1	500,000		Limited Recourse⁽¹⁶⁾	Apr-22⁽²⁰⁾	LIBOR + 1.93%	(18)	199,740		199,740		221,421		221,421
Bank 8 facility 1	250,000		Limited Recourse⁽¹⁶⁾	Jun-21⁽²¹⁾	LIBOR + 2.00%	(18)	168,987		168,987		164,098		164,098
Bank 9 facility 1	300,000		⁽²²⁾	Nov-23⁽²³⁾	(24)	(18)	—		—		—		—
Subtotal master repurchase facilities	$	2,250,000					723,028		723,028		780,211		780,211



						March 31, 2020				December 31, 2019
	Capacity ($)	Recourse vs. Non-Recourse⁽¹⁾	Final Maturity	Contractual Interest Rate		Principal Amount⁽²⁾		Carrying Value⁽²⁾		Principal Amount⁽²⁾		Carrying Value⁽²⁾
CMBS credit facilities
Bank 1 facility 1		Recourse	(25)	LIBOR + 1.82%	(18)	13,477		13,477		20,375		20,375
Bank 1 facility 2		Recourse	(25)	LIBOR + 3.00%	(18)	12,907		12,907		18,834		18,834
Bank 3 facility		Recourse	(25)	NA	(26)	—		—		—		—
Bank 4 facility		Recourse	(25)	NA	(26)	—		—		—		—
Bank 5 facility 1		Recourse	(25)	NA	(26)	—		—		—		—
Bank 5 facility 2		Recourse	(25)	NA	(26)	—		—		—		—
Bank 6 facility 1		Recourse	(25)	(27)		86,035		86,035		83,584		83,584
Bank 6 facility 2		Recourse	(25)	(27)		84,972		84,972		82,729		82,729
Subtotal CMBS credit facilities						197,391		197,391		205,522		205,522
Subtotal credit facilities						1,260,419		1,260,419		1,099,233		1,099,233

Total						$	3,257,619	$	3,246,941	$	3,199,923	$	3,188,498

_________________________________________


(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 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.


(4)	Represents a mortgage note collateralized by an investment in the Company’s Core Portfolio.


(5)	Represents a mortgage note collateralized by an investment in the Company’s Legacy, Non-Strategic Portfolio.


(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)	Represents a mortgage note collateralized by three properties in the Company’s Legacy, Non-Strategic Portfolio.


(8)	The current maturity of the mortgage payable is April 2020, with a one-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. The Company exercised this extension option subsequent to March 31, 2020.


(9)	As of March 31, 2020, the outstanding principal of the mortgage payable was NOK 1.6 billion, which translated to $152.8 million.


(10)	Represents a mortgage note that was repaid during the first quarter of 2020 in connection with the sale of the collateralized properties.


(11)	Represents two separate senior mortgage notes with a weighted average maturity of December 2020 and weighted average interest rate of 5.34%.


(12)	The current maturity of the mortgage payable is April 2022, 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)	The current maturity of the note payable is June 2021, with three 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. The loan is included in the Company’s Core Portfolio.


(14)	Facility size reduced on May 6, 2020 to $450.0 million.


(15)	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.


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


(17)	The next maturity date is April 2021, with two 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.


(18)	Represents the weighted average spread as of March 31, 2020. The contractual interest rate depends upon asset type and characteristics and ranges from one-month London Interbank Offered Rates (“LIBOR”) plus 1.10% to 3.00%.


(19)	The next maturity date is October 2020, with two one-year extension options available, which may be subject to the satisfaction of certain customary conditions set forth in the governing documents.


(20)	The next maturity date is April 2021, with a one-year extension available, which may be subject to the satisfaction of certain customary conditions set forth in the governing documents.


(21)	The next maturity date is June 2020, with a one-year extension available, which may be subject to the satisfaction of certain customary conditions set forth in the governing documents.


(22)	Recourse is either 25.0% or 50.0% depending on loan metrics.


(23)	The next maturity date is November 2021, with two one-year extension options available, which may be subject to the satisfaction of certain customary conditions set forth in the governing documents.


(24)	The interest rate will be determined by the lender in its sole discretion.


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


(26)	CMBS Credit Facilities are undrawn and fully available.

(27)

Bank 6 Facilities 1 and 2 both have fixed and floating rate financing. Bank 6 Facility 1 consists of $22.6 million financed with a fixed rate of 4.50% and $63.4 million financed with a weighted average interest rate of LIBOR plus 1.77%. Bank 6 Facility 2 consists of $45.5 million financed with a fixed rate of 4.50% and $39.5 million financed with a weighted average interest rate of LIBOR plus 1.50%.

Future Minimum Principal Payments

The following table summarizes future scheduled minimum principal payments at March 31, 2020 based on initial maturity dates or extended maturity dates to the extent criteria are met and the extension option is at the borrower’s discretion (dollars in thousands):



	Total		Securitization Bonds Payable, Net		Mortgage Notes Payable, Net⁽¹⁾		Credit Facilities⁽¹⁾
Remainder of 2020	$	211,060	$	—	$	13,669	$	197,391
2021	258,421		—		89,434		168,987
2022	447,157		—		2,520		444,637
2023	494,529		—		45,125		449,404
2024	217,353		—		217,353		—
2025 and thereafter	1,629,099		840,423		788,676		—
Total	$	3,257,619	$	840,423	$	1,156,777	$	1,260,419

_________________________________________


(1)	Includes $131.3 million of future minimum principal payments related to assets held for sale.

Bank Credit Facility

On February 1, 2018, the Company, through subsidiaries, including the OP, 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”). On February 4, 2019, the aggregate amount of revolving commitments was increased to $560.0 million and on May 6, 2020 these commitments were reduced to $450.0 million. The Bank Credit Facility will mature on February 1, 2022, unless the OP elects to extend the maturity date for up to 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, 2020, the borrowing base valuation was sufficient to support the outstanding principal amount of $340.0 million.

Advances under the Bank Credit Facility accrue interest at a per annum rate equal to, at the applicable borrower’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%. The Company pays a commitment fee of 0.25% or 0.35% per annum of the unused amount (0.25% at March 31, 2020), depending upon the amount of facility utilization.

Substantially all material wholly owned subsidiaries of the Company guarantee the obligations of the Company and any other borrowers under the Bank Credit Facility. As security for the advances under the Bank Credit Facility, the Company pledged substantially all equity interests it owns and granted a security interest in deposit accounts 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 specified in the Bank Credit Facility. At March 31, 2020, the Company was in compliance with all of the financial covenants.

Refer to Note 19, “Subsequent Events” for further discussion regarding the status of the Company’s Bank Credit Facility.

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.

In October 2019, the Company executed a securitization transaction, through wholly-owned subsidiaries, CLNC 2019-FL1, Ltd. and CLNC 2019-FL1, LLC (collectively, “CLNC 2019-FL1”), which resulted in the sale of $840.4 million of investment grade notes. The securitization reflects an advance rate of 83.5% at a weighted average cost of funds of LIBOR plus 1.59%, and is collateralized by a pool of 22 senior loans originated by the Company.

As of March 31, 2020, the Company had $1.0 billion carrying value of CRE debt investments financed with $840.4 million of securitization bonds payable, net.

Master Repurchase Facilities

As of March 31, 2020, the Company, through subsidiaries, had entered into repurchase agreements with multiple global financial institutions to provide an aggregate principal amount of up to $2.3 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, 2020, the Company was in compliance with all of its financial covenants under the Master Repurchase Facilities.

As of March 31, 2020, the Company had $1.0 billion carrying value of CRE debt investments financed with $723.0 million under the master repurchase facilities.

During the three months ended March 31, 2020, the Company received and timely paid a margin call on a hospitality loan and made voluntarily paydowns on two other hospitality and one retail loan. The lender granted the Company a holiday from future margin calls between three and four months, and it obtained broader discretion to enter into permitted modifications with the borrowers on these three specific loans, if necessary.

Refer to Note 19, “Subsequent Events” for further discussion regarding the status of the Company’s Master Repurchase Facilities.

CMBS Credit Facilities

As of March 31, 2020, the Company entered into eight 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, 2020, the Company had $178.3 million carrying value of CRE securities financed with $172.8 million under its CMBS Credit Facilities. As of March 31, 2020, the Company had $28.5 million carrying value of underlying investments in the subordinate tranches of the securitization trusts financed with $24.6 million under its CMBS Credit Facilities.

During the three months ended March 31, 2020, the Company received and timely paid margin calls on its CMBS master repurchase facilities of $48.9 million.

Refer to Note 19, “Subsequent Events” for further discussion regarding the status of the Company’s CMBS Credit Facilities.

Related Party Arrangements	3 Months Ended
Related Party Arrangements	Mar. 31, 2020
Related Party Transactions [Abstract]
Related Party Arrangements	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 is 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 Date 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 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. In November 2019 the Manager, the Company and the OP amended and restated the Management Agreement to modify the “Core Earnings” definition, providing that “unrealized provisions for loan losses and real estate impairments” shall only be applied as exclusions from the definition of Core Earnings if approved by a majority of the independent directors of the Company. Such change became effective during the fourth quarter of 2019 and results in a reduction to Core Earnings which thereby reduces the annual management fee and any incentive fee paid by the Company due to accumulated unrealized provisions for loan losses and real estate impairments to date. 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 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 and (3) any incentive fee (as described below) paid to the Manager since the Closing Date. For the three months ended March 31, 2020 and 2019, the total management fee expense incurred was $7.9 million and $11.4 million, respectively. As of March 31, 2020 and December 31, 2019, $8.2 million and $8.4 million, respectively, of unpaid management fee were included in due to related party in the Company’s consolidated balance sheets. 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, 2020 and 2019. 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 the 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. For the three months ended March 31, 2020 and 2019, the total reimbursements of expenses incurred by the Manager on behalf of the Company and reimbursable in accordance with the Management Agreement was $2.7 million and is included in administrative expense on the consolidated statements of operations. As of both March 31, 2020 and December 31, 2019, there were $2.7 million of unpaid expenses included in due to related party in the Company’s consolidated balance sheets. Other Payables to Manager Other payables to the Manager include Combination related adjustments that consist of certain cash contributions from and distributions to Colony Capital or its subsidiaries on behalf of the CLNY Contributed Portfolio. For the three months ended March 31, 2020, there were no other payables to the Manager. For the three months ended March 31, 2019, the other payables to the Manager was $1.6 million related to tax obligations associated with the vesting of restricted common stock and was included in due to related party in the Company’s consolidated balance sheet as of March 31, 2019. This was paid as of March 31, 2020. Equity Plan Grants In March 2019, the Company granted 800,000 shares to the Manager and/or employees thereof under the 2018 Equity Incentive Plan (the “2018 Plan”). In March 2018, the Company granted 978,946 shares to its non-independent directors, officers and the Manager and/or employees thereof under the 2018 Plan. 735,473 shares remain granted and unvested as of March 31, 2020. See Note 11, “Equity-Based Compensation” for further discussion on the 2018 Plan including shares issued to independent directors of the Company. In connection with these grants, the Company recognized share-based compensation expense of $0.2 million and $1.8 million to its Manager within administrative expense in the consolidated statement of operations for the three months ended March 31, 2020 and March 31, 2019, respectively. Colony Capital, Inc. Internalization Discussions with the Company On April 1, 2020, Colony Capital reported in Amendment No. 3 to the Schedule 13D filed with the SEC that it has postponed any decision regarding a disposition of its management agreement with the Company until market conditions improve due to ongoing uncertainty surrounding the duration and magnitude of the COVID-19 pandemic and its impact on the global economy. Investment Activity All investment acquisitions are approved in accordance with the Company’s investment and related party guidelines, which may include approval by either the audit committee or disinterested members of the Company’s Board of Directors. No investment by the Company will require approval under the related party transaction policy solely because such investment constitutes a co-investment made by and between the Company and any of its subsidiaries, on the one hand, and one or more investment vehicles formed, sponsored, or managed by an affiliate of the Manager on the other hand. 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. In June 2018, the Company increased its commitment to $101.8 million in connection with the joint venture bifurcating the mezzanine loan into a mezzanine loan and a preferred equity investment. The Company’s interest in both the underlying mezzanine loan and preferred equity investment is 31.8%, and the affiliate entities own the remaining 68.2%. Both the underlying mezzanine loan and preferred equity investment carry a fixed 13.0% interest rate. This investment is recorded in investments in unconsolidated ventures in the Company’s consolidated balance sheets. In July 2019, the Company increased its commitment in the mezzanine loan from $101.8 million to $189.0 million. The Company’s interest in the upsized mezzanine loan is 45.2% and it carries a fixed 13.0% interest rate. As of March 31, 2020, the Company had an unfunded commitment of $32.2 million remaining. 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 affiliate has a 27.2% ownership interest in the borrower. The preferred equity investment carries a fixed 12.0% interest rate. This investment is recorded in loans and preferred equity held for investment, net in the Company’s consolidated balance sheets. In July 2018, the Company acquired a $326.8 million Class A office campus located in Norway from an affiliate of the Company’s Manager. In connection with the purchase, the Company assumed senior mortgage financing from a private bond issuance of $197.7 million. The bonds have a five-year term remaining, and carry a fixed interest rate of 3.91%. In July 2018, the Company entered into a joint venture to invest in a development project for land and a Grade A office building in Ireland. The Company agreed to invest up to $69.9 million of the $139.7 million total commitment. The Company co-invested along with two affiliates of the Manager, with the Company owning 50.0% of the joint venture and the affiliate entities owning the remaining 50.0%. The joint venture invested in a senior mortgage loan of $66.7 million with a fixed interest rate of 12.5% and a maturity date of 3.5 years from origination and common equity. In October 2018, the Company entered into a joint venture to invest in a mixed-use development project in Ireland. The Company agreed to invest up to $162.4 million of the $266.5 million total commitment. The Company co-invested along with two affiliates of the Manager, with the Company owning 61.0% of the joint venture and the affiliate entities owning the remaining 39.0%. The joint venture invested in a senior mortgage loan with a fixed interest rate of 15.0% and a maturity date of two years from origination. In October 2018, the Company acquired a $20.0 million mezzanine loan from an affiliate of the Company’s Manager, secured by a pledge of an ownership interest in a luxury condominium development project located in New York, NY. The loan bears interest at 9.5% plus LIBOR. The borrower repaid the loan in February 2020.

Equity-Based Compensation

3 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement [Abstract]

Equity-Based Compensation

On January 29, 2018 the Company’s Board of Directors adopted the 2018 Plan. The 2018 Plan permits the grant of 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; (iii) restricted stock awards; (iv) stock units; (v) unrestricted stock awards; (vi) dividend equivalent rights; (vii) performance awards; (viii) annual cash incentive awards; (ix) long-term incentive units; and (x) 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 in May 2019 to the independent directors of the Company under the 2018 Plan vest in May 2020. Shares granted to non-independent directors, officers and the Manager under the 2018 Plan vest ratably in three annual installments.

The table below summarizes our awards granted, forfeited or vested under the 2018 Plan during the three months ended March 31, 2020:



	Number of Shares
	Restricted Stock		Total		Weighted Average Grant Date Fair Value
Unvested Shares at December 31, 2019	1,335,590		1,335,590		$	17.79
Granted	—		—		—
Vested	(427,841	)	(427,841	)	17.36
Forfeited	(172,276	)	(172,276	)	17.25
Unvested shares at March 31, 2020	735,473		735,473		$	17.65

Fair value of equity awards that vested during the three months ended March 31, 2020 and March 31, 2019, determined based on their respective fair values at vesting date, was $2.6 million and $4.9 million, respectively. Fair value of granted awards is determined based on the closing price of the Class A common stock on the date of grant of the awards. Equity-based compensation is classified within administrative expense in the consolidated statement of operations.

At March 31, 2020, aggregate unrecognized compensation cost for all unvested equity awards was $7.5 million, which is expected to be recognized over a weighted-average period of 1.7 years.

Stockholders' Equity

3 Months Ended

Mar. 31, 2020

Equity [Abstract]

Stockholders' Equity

Stockholders’ Equity

Authorized Capital

As of March 31, 2020, the Company had the authority to issue up to 1.0 billion shares of stock, at $0.01 par value per share, consisting of 950.0 million shares of Class A common stock and 50.0 million shares of preferred stock. On February 1, 2019, the Class B-3 common stock automatically converted to Class A common stock and each unissued share of Class B-3 common stock was automatically reclassified as one share of Class A common stock.

The Company had no shares of preferred stock issued and outstanding as of March 31, 2020.

Dividends

During the three months ended March 31, 2020, the Company declared the following dividends on its common stock:



Declaration Date	Record Date	Payment Date	Per Share
January 15, 2020	January 31, 2020	February 10, 2020	$0.10
February 14, 2020	February 29, 2020	March 10, 2020	$0.10
March 16, 2020	March 31, 2020	April 10, 2020	$0.10

Subsequent to March 31, 2020, the Company and its Board of Directors suspended the Company’s monthly stock dividend beginning with the monthly period ending April 30, 2020. Refer to Note 19, “Subsequent Events” for further discussion regarding the monthly stock dividend.

Stock Repurchase Program

The Company’s Board of Directors authorized a stock repurchase program (the “Stock Repurchase Program”), under which the Company could repurchase up to $300.0 million of its outstanding Class A common stock until March 31, 2020. On February 18, 2020, the Company’s Board of Directors voted to extend the Stock Repurchase Program through March 31, 2021. 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, 2020, the Company had not repurchased any shares under the Stock Repurchase Program.

Accumulated Other Comprehensive Income (Loss)

The following tables present the changes in each component of Accumulated Other Comprehensive Income (Loss) (“AOCI”) attributable to stockholders and noncontrolling interests in the OP, net of immaterial tax effect.

Changes in Components of AOCI - Stockholders



(in thousands)	Unrealized gain (loss) on real estate securities, available for sale			Unrealized gain on net investment hedges		Foreign currency translation loss			Total
AOCI at December 31, 2019	$	15,909		$	25,872	$	(13,487	)	$	28,294
Other comprehensive income (loss)	(73,273		)	21,255		(18,981		)	(70,999		)
AOCI at March 31, 2020	$	(57,364	)	$	47,127	$	(32,468	)	$	(42,705	)



(in thousands)	Unrealized gain (loss) on real estate securities, available for sale			Unrealized gain on net investment hedges		Foreign currency translation loss			Total
AOCI at December 31, 2018	$	(1,295	)	$	11,037	$	(10,141	)	$	(399	)
Other comprehensive income (loss)	9,530			7,222		(3,233		)	13,519
AOCI at March 31, 2019	$	8,235		$	18,259	$	(13,374	)	$	13,120

Changes in Components of AOCI - Noncontrolling Interests in the OP



(in thousands)	Unrealized gain on real estate securities, available for sale			Unrealized gain (loss) on net investment hedges		Foreign currency translation gain (loss)			Total
AOCI at December 31, 2019	$	612		$	893	$	(801	)	$	704
Other comprehensive income (loss)	(1,756		)	509		(455		)	(1,702		)
AOCI at March 31, 2020	$	(1,144	)	$	1,402	$	(1,256	)	$	(998	)



(in thousands)	Unrealized gain (loss) on real estate securities, available for sale			Unrealized gain on net investment hedges		Foreign currency translation loss			Total
AOCI at December 31, 2018	$	(32	)	$	268	$	(246	)	$	(10	)
Other comprehensive income (loss)	228			173		(77		)	324
AOCI at March 31, 2019	$	196		$	441	$	(323	)	$	314

Noncontrolling Interests	3 Months Ended
Noncontrolling Interests	Mar. 31, 2020
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 income (loss) attributable to the noncontrolling interests is based on the limited partners’ ownership percentage of the OP. Net loss attributable to the noncontrolling interests of the OP was $1.9 million for the three months ended March 31, 2020. Net income attributable to the noncontrolling interests of the OP for the three months ended March 31, 2019 was $0.3 million. 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, 2020 was $0.5 million. Net loss attributable to noncontrolling interests in the investment entities for the three months ended March 31, 2019 was $0.3 million.

Fair Value

3 Months Ended

Mar. 31, 2020

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 either 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, or pending sales prices, if applicable. This fair value measurement is generally based on unobservable inputs and, as such, is classified as Level 3 of the fair value hierarchy, unless the PE Investments are valued based on pending sales prices, which are classified as Level 2 of the fair value hierarchy. The Company considers cash flow and NAV information provided by general partners of the underlying funds (“GP NAV”) and the implied yields of those funds in valuing its PE Investments. The Company also considers the values derived from the valuation model as a percentage of GP NAV, and compares the resulting

percentage of GP NAV to precedent transactions, independent research, industry reports as well as pricing from executed purchase and sale agreements related to the disposition of its PE Investments. The Company may, as a result of that comparison, apply a mark-to-market adjustment. 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 5, “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.

Derivatives

Derivative instruments consist of interest rate contracts and foreign exchange contracts that are generally traded over-the-counter, and are valued using a third-party service provider. Quotations on over-the counter derivatives are not adjusted and are generally valued using observable inputs such as contractual cash flows, yield curve, foreign currency rates and credit spreads, and are classified as Level 2 of the fair value hierarchy. Although credit valuation adjustments, such as the risk of default, rely on Level 3 inputs, these inputs are not significant to the overall valuation of its derivatives. As a result, derivative valuations in their entirety are classified as Level 2 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, 2020 and December 31, 2019 by level within the fair value hierarchy (dollars in thousands):



	March 31, 2020								December 31, 2019
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Investments in unconsolidated ventures - PE Investments	$	—	$	124	$	8,640	$	8,764	$	—	$	1,425	$	8,858	$	10,283
Real estate securities, available for sale	—		179,572				179,572		—		252,824		—		252,824
Mortgage loans held in securitization trusts, at fair value	—		—		1,822,991		1,822,991		—		—		1,872,970		1,872,970
Other assets - derivative assets	—		9		—		9		—		4,122		—		4,122
Liabilities:
Mortgage obligations issued by securitization trusts, at fair value	$	—	$	1,732,388	$	—	$	1,732,388	$	—	$	1,762,914	$	—	$	1,762,914
Other liabilities - derivative liabilities	—		33,344		—		33,344		—		19,133		—		19,133

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, 2020 and year ended December 31, 2019 (dollars in thousands):



	Three Months Ended March 31, 2020						Year Ended December 31, 2019
	Investments in unconsolidated ventures - PE Investments			Mortgage loans held in securitization trusts⁽¹⁾			Investments in unconsolidated ventures - PE Investments			Mortgage loans held in securitization trusts⁽¹⁾
Beginning balance	$	8,858		$	1,872,970		$	160,851		$	3,116,978
Contributions⁽²⁾/purchases	—			—			151			—
Distributions/paydowns	(887		)	(6,578		)	(18,407		)	(55,288		)
Deconsolidation of securitization trust⁽³⁾	—			—			—			(1,239,627		)
Equity in earnings	669			—			—			—
Sale of investments	—			—			(48,930		)	(39,848		)
Transfers out of Level 3				—			(84,807		)	—
Unrealized gain (loss) in earnings	—			(43,401		)	—			87,983
Realized gain in earnings				—			—			2,772
Ending balance	$	8,640		$	1,822,991		$	8,858		$	1,872,970

_________________________________________


(1)	For the three months ended March 31, 2020, unrealized loss of $43.4 million related to mortgage loans held in securitization trusts, at fair value was offset by unrealized gain of $23.9 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.


(3)	In July 2019, the Company sold its retained investments in the subordinate tranches of one securitization trust. As a result of the sale, the Company deconsolidated one of the securitization trusts. See Note 5, “Real Estate Securities, Available for Sale” for further information.

Transfers of assets into or out of Level 3 are presented at their fair values as measured at the end of the reporting period. Assets transferred out of Level 3 represent PE Investments that were valued based on their contracted sales price in March 2019.

As of March 31, 2020 and December 31, 2019, the Company utilized a discounted cash flow model, comparable precedent transactions and other market information to quantify Level 3 fair value measurements on a recurring basis. As of March 31, 2020 and December 31, 2019, the key unobservable inputs used in the analysis of PE Investments included discount rates with a range of 11.0% to 12.0% and timing and amount of expected future cash flows. As of March 31, 2020 and December 31, 2019, the key unobservable inputs used in the valuation of mortgage obligations issued by securitization trusts included yields ranging from

14.2% to 34.1% and 15.0% to 16.1%, respectively, and a weighted average life of 5.6 and 5.4 years, respectively. 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, 2020 and March 31, 2019 the Company recorded a net unrealized loss of $19.5 million and a net unrealized gain of $1.0 million respectively, 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, 2020, the company did not record a realized gain on mortgage loans held in securitization trusts, at fair value. For the three months ended March 31, 2019, the Company recorded a de minimis realized gain on mortgage loans held in securitization trusts, at fair value, which represents a recovery of a loss previously recorded in 2018. This amount is recorded as realized gain on mortgage loans and obligations held in securitization trusts, net 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, 2020 and December 31, 2019, 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, 2020 and December 31, 2019 (dollars in thousands):



	March 31, 2020							December 31, 2019
	Principal Amount			Carrying Value		Fair Value		Principal Amount			Carrying Value		Fair Value
Financial assets:⁽¹⁾
Loans and preferred equity held for investment, net	$	2,413,251	⁽²⁾	$	2,351,278	$	2,361,776	$	2,858,423	⁽²⁾	$	2,576,332	$	2,470,561
Financial liabilities:⁽¹⁾
Securitization bonds payable, net	$	840,423		$	833,671	$	840,423	$	840,423		$	833,153	$	840,423
Mortgage and other notes payable, net	1,156,777			1,152,851		1,156,461		1,260,267			1,256,112		1,260,675
Master repurchase facilities	1,260,419			1,260,419		1,260,419		1,099,233			1,099,233		1,099,233

_________________________________________


(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 $236.7 million and $276.6 million as of March 31, 2020 and December 31, 2019, respectively.

Disclosure about fair value of financial instruments is based on pertinent information available to management as of March 31, 2020. 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 and Preferred Equity Held for Investment, Net

For loans and preferred equity 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 and preferred equity held for investment are presented net of allowance for loan losses, where applicable.

Securitization Bonds Payable, Net

The Company’s securitization bonds payable, net bear floating rates of interest. As of March 31, 2020, 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.

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 March 31, 2020, 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 and cash equivalents, receivables, and accrued and other liabilities approximate fair value due to their short term nature and credit risk, if any, are negligible.

Nonrecurring Fair Values

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

The following table summarizes assets carried at fair value on a nonrecurring basis as of March 31, 2020 and December 31, 2019 (dollars in thousands):



	March 31, 2020								December 31, 2019
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Loans and preferred equity held for investment, net	$	—	$	—	$	2,351,278	$	2,351,278	$	—	$	—	$	104,797	$	104,797
Loans held for sale	—		—		21,191		21,191		—		—		5,016		5,016
Real estate, net	—		—		344,726		344,726		—		—		448,690		448,690
Real estate assets held for sale	—		—		162,403		162,403		—		—		134,966		134,966
Investments in unconsolidated ventures	—		—		195,393		195,393		—		—		211,024		211,024
Deferred leasing costs and intangible assets, net	—		—		34,005		34,005		—		—		42,122		42,122

The following table summarizes the fair value write-downs to assets carried at nonrecurring fair values during the periods presented (dollars in thousands):



	Three Months Ended March 31,
	2020		2019
Provision for loan losses:
Loans and preferred equity held for investment, net	$	31,499	$	—
Loans held for sale	36,783		—
Total provision for loan losses	$	68,282	$	—

Loans and preferred equity held for investment, net—Provision for loan losses consisted of the Company’s CECL provision for loan losses in the Core Portfolio, as well as one loan that the company individually evaluated for impairment in the Company’s Core Portfolio, which reflected the reduction of the estimated fair value of the collateral. The fair value of the loans collateral was determined by applying a terminal cap rate of 13%. The Company recorded $31.5 million of provision for loan losses in its Core Portfolio during the three months ended March 31, 2020.

Loans held for sale— Provision for loan losses consisted of one loan in the Company’s Legacy, Non-Strategic Portfolio. During the three months ended March 31, 2020 the significant detrimental impact of COVID-19 on the U.S. hospitality industry further contributed to the deterioration of the Company’s four NY hospitality loans and as such the Company recorded an additional provision for loan losses of $36.8 million. On April 22, 2020, the Company completed a discounted payoff of the NY hospitality loans and related investment interests.

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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

Derivatives

3 Months Ended

Mar. 31, 2020

Derivatives

The Company uses derivative instruments to manage the risk of changes in interest rates and foreign exchange rates, arising from both its business operations and economic conditions. Specifically, the Company enters into derivative instruments to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and cash payments, the values of which are driven by interest rates, principally relating to the Company’s investments. Additionally, the Company’s foreign operations expose the Company to fluctuations in foreign exchange rates. The Company enters into derivative instruments to protect the value or fix certain of these foreign denominated amounts in terms of its functional currency, the U.S. dollar. Derivative instruments used in the Company’s risk management activities may be designated as qualifying hedge accounting relationships designated hedges or non-designated hedges.

As of March 31, 2020 and December 31, 2019, fair value of derivative assets and derivative liabilities were as follows (dollars in thousands):



	March 31, 2020								December 31, 2019
	Designated Hedges		Non-Designated Hedges			Total			Designated Hedges			Non-Designated Hedges			Total
Derivative Assets
Foreign exchange contracts	$	—	$	—		$	—		$	—		$	4,122		$	4,122
Interest rate contracts	—		9			9			—			—			—
Included in other assets	$	—	$	9		$	9		$	—		$	4,122		$	4,122
Derivative Liabilities
Foreign exchange contracts	$	—	$	—		$	—		$	(2,128	)	$	(29	)	$	(2,157	)
Interest rate contracts	—		(33,344		)	(33,344		)	—			(16,976		)	(16,976		)
Included in accrued and other liabilities	$	—	$	(33,344	)	$	(33,344	)	$	(2,128	)	$	(17,005	)	$	(19,133	)

As of March 31, 2020, the Company posted $14.5 million in net cash collateral to counterparties for its derivative contracts and those counterparties held $33.4 million in cash collateral.

The following table summarizes the Company’s interest rate contracts as of March 31, 2020:

Type of Derivatives

Notional Currency

Notional Amount (in thousands)

Range of Maturity Dates

Designated

Non-Designated

Interest Rate Swap

USD

—

366,730

April 2020 - August 2028

The table below represents the effect of the derivative financial instruments on the consolidated statements of operations and of comprehensive income (loss) for the three months ended March 31, 2020 and 2019 (dollars in thousands):



	Three Months Ended March 31,
	2020			2019
Other gain (loss), net
Non-designated foreign exchange contracts	$	(4,084	)	$	237
Non-designated interest rate contracts	(16,370		)	(4,083		)
	$	(20,454	)	$	(3,846	)
Other income
Non-designated foreign exchange contracts	$	8,738		$	—
	$	8,738		$	—
Accumulated other comprehensive income (loss)
Designated foreign exchange contracts	$	21,764		$	7,395
	$	21,764		$	7,395

During the three months ended March 31, 2020, the Company received $28.2 million from the unwind of its NOK and EUR FX forwards and realized a gain of $8.7 million which is included in other income on its consolidated statements of operations.

At the end of each quarter, the Company reassesses the effectiveness of its net investment hedges and as appropriate, dedesignates the portion of the derivative notional that is in excess of the beginning balance of its net investments as non-designated hedges. Any unrealized gain or loss on the dedesignated portion of net investment hedges is transferred into earnings, recorded in other gain (loss), net. During the three months ended March 31, 2020 and 2019, no gain (loss) was transferred from accumulated other comprehensive income (loss).

Offsetting Assets and Liabilities

The Company enters into agreements subject to enforceable netting arrangements with its derivative counterparties that allow the Company to offset the settlement of derivative assets and liabilities in the same currency by derivative instrument type or, in the event of default by the counterparty, to offset all derivative assets and liabilities with the same counterparty. The Company has elected not to net derivative asset and liability positions, notwithstanding the conditions for right of offset may have been met. The Company presents derivative assets and liabilities with the same counterparty on a gross basis on the consolidated balance sheets.

The following table sets forth derivative positions where the Company has a right of offset under netting arrangements with the same counterparty as of March 31, 2020 and December 31, 2019 (dollars in thousands):



	Gross Amounts of Assets (Liabilities) Included on Consolidated Balance Sheets			Gross Amounts Not Offset on Consolidated Balance Sheets					Net Amounts of Assets (Liabilities)
				(Assets) Liabilities			Cash Collateral Pledged		Net Amounts of Assets (Liabilities)
March 31, 2020
Derivative Assets
Interest rate contracts	$	9		$	(9	)	$	—	$	—
	$	9		$	(9	)	$	—	$	—
Derivative Liabilities
Interest rate contracts	$	(33,344	)	$	9		$	33,335	$	—
	$	(33,344	)	$	9		$	33,335	$	—

December 31, 2019
Derivative Assets
Foreign exchange contracts	$	4,122		$	(2,157	)	$	—	$	1,965
	$	4,122		$	(2,157	)	$	—	$	1,965
Derivative Liabilities
Foreign exchange contracts	$	(2,157	)	$	2,157		$	—	$	—
Interest rate contracts	(16,976		)	—			16,976		—
	$	(19,133	)	$	2,157		$	16,976	$	—

Commitments and Contingencies

3 Months Ended

Mar. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

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, 2020, assuming the terms to qualify for future fundings, if any, have been met, total unfunded lending commitments for loans and preferred equity held for investment was $162.1 million for senior loans, $37.3 million for securitized loans, $1.2 million for corporate term loans and $36.1 million for mezzanine loans. Total unfunded commitments for equity method investments was $32.2 million.

Ground Lease Obligation

The Company’s operating leases are ground leases acquired with real estate.

At March 31, 2020, the weighted average remaining lease terms were 14.2 years for ground leases.

The following table presents lease expense, included in property operating expense, for the three months ended March 31, 2020 and 2019 (dollars in thousands):



	Three Months Ended March 31,
	2020		2019
Operating lease expense:
Minimum lease expense	$	804	$	809
Variable lease expense	—		—
	$	804	$	809

The operating lease liability was determined using a weighted average discount rate of 5.0%. The following table presents future minimum rental payments, excluding contingent rents, on noncancellable ground leases on real estate as of March 31, 2020 (dollars in thousands):



Remainder of 2020	$	2,390
2021	3,171
2022	3,199
2023	3,229
2024	2,338
2025 and thereafter	21,725
Total lease payments	36,052
Less: Present value discount	11,757
Operating lease liability (Note 8)	$	24,295

The following table presents future minimum rental payments, excluding contingent rents, on noncancellable ground leases on real estate as of December 31, 2019 (dollars in thousands):



2020	$	3,232
2021	3,216
2022	3,244
2023	3,274
2024	2,383
2025 and thereafter	23,079
Total lease payments	38,428
Less: Present value discount	12,933
Operating lease liability (Note 8)	$	25,495

Litigation and Claims

The Company may be involved in litigation and claims in the ordinary course of the business. As of March 31, 2020, the Company was not involved in any legal proceedings that are expected to have a material adverse effect on the Company’s results of operations, financial position or liquidity.

Segment Reporting

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Segment Reporting

Following the Combination, the Company conducted its business through the following five operating segments: the loan portfolio, CRE debt securities, net leased real estate, other, and corporate. The Company continually monitors and reviews its segment reporting structure in accordance with authoritative guidance to determine whether any changes have occurred that would impact our reportable segments.

During the third quarter of 2019, the Company realigned the business and reportable segment information to reflect how the CODM regularly review and manage the business. As a result, the Company presents its business segments as follows:


•	Core Portfolio, which consists of the following four segments and remain unchanged from the prior segments:


◦	Senior and Mezzanine Loans and Preferred Equity—CRE debt investments including senior mortgage loans, mezzanine loans, and preferred equity interests as well as participations in such loans. The segment also includes ADC loan arrangements accounted for as equity method investments.


◦	CRE Debt Securities securities investments currently consisting of BBB and some BB rated CMBS (including Non-Investment Grade “B-pieces” of a CMBS securitization pool), or CRE CLOs (including the junior tranches thereof, collateralized by pools of CRE debt investments).


◦	Net Leased Real Estate—direct investments in CRE 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.


◦	Corporate—includes corporate-level asset management and other fees, related party and general and administrative expenses to the Core Portfolio only.

•

Legacy, Non-Strategic Portfolio—segment consists of direct investments in operating real estate such as multi-tenant office and multifamily residential assets such as real estate acquired in settlement of loans (“REO”) which the Company plans to exit. It also includes two portfolios of PE Investments and certain retail and other legacy loans originated prior to the Combination. This segment includes corporate-level asset management and other fees, related party and general and administrative expenses related to the Legacy, Non-Strategic Portfolio only.

There were no changes in the structure of the Company’s internal organization that prompted the change in reportable segments. Prior period amounts have been revised to conform to the current year presentation shown below.

The Company primarily generates revenue from net interest income on the loan, preferred equity and securities portfolios, rental and other income from its net leased, hotel, multi-tenant office, and multifamily real estate assets, as well as equity in earnings of unconsolidated ventures. 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, 2020 and 2019 (dollars in thousands):



	Core
	Senior and MezzanineLoans and Preferred Equity			CRE Debt Securities			Net Leased Real Estate			Corporate⁽¹⁾			Total Core Portfolio			Legacy, Non-Strategic Portfolio			Total
Three months ended March 31, 2020
Net interest income (expense)	$	23,483		$	5,543		$	—		$	(1,876	)	$	27,150		$	706		$	27,856
Property and other income	24			72			30,531			5			30,632			31,290			61,922
Management fee expense	—			—			—			(6,516		)	(6,516		)	(1,430		)	(7,946		)
Property operating expense	(1		)	—			(3,683		)	—			(3,684		)	(18,847		)	(22,531		)
Transaction, investment and servicing expense	(398		)	—			(143		)	(1,673		)	(2,214		)	(920		)	(3,134		)
Interest expense on real estate	—			—			(8,461		)	—			(8,461		)	(4,617		)	(13,078		)
Depreciation and amortization	—			—			(11,153		)	—			(11,153		)	(6,823		)	(17,976		)
Provision for loan losses	(31,499		)	—			—			—			(31,499		)	(38,433		)	(69,932		)
Impairment of operating real estate	—			—			—			—			—			(4,126		)	(4,126		)
Administrative expense	(363		)	(535		)	(82		)	(3,151		)	(4,131		)	(2,907		)	(7,038		)
Unrealized gain (loss) on mortgage loans and obligations held in securitization trusts, net	—			(19,906		)	—			454			(19,452		)	—			(19,452		)
Other loss, net	—			(16,336		)	(4,084		)	(92		)	(20,512		)	350			(20,162		)
Income (loss) before equity in earnings of unconsolidated ventures and income taxes	(8,754		)	(31,162		)	2,925			(12,849		)	(49,840		)	(45,757		)	(95,597		)
Equity in earnings of unconsolidated ventures	14,074			—			—			—			14,074			3,093			17,167
Income tax benefit (expense)	(361		)	—			198			—			(163		)	(1,548		)	(1,711		)
Net income (loss)	$	4,959		$	(31,162	)	$	3,123		$	(12,849	)	$	(35,929	)	$	(44,212	)	$	(80,141	)

_________________________________________

(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, 2020, $0.5 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.



	Core
	Senior and MezzanineLoans and Preferred Equity			CRE Debt Securities			Net Leased Real Estate			Corporate⁽¹⁾			Total Core Portfolio			Legacy, Non-Strategic Portfolio			Total
Three months ended March 31, 2019
Net interest income (expense)	$	15,882		$	5,312		$	—		$	(2,858	)	$	18,336		$	3,622		$	21,958
Property and other income	93			67			29,904			—			30,064			33,247			63,311
Management fee expense	—			—			—			(9,086		)	(9,086		)	(2,272		)	(11,358		)
Property operating expense	—			—			(8,946		)	—			(8,946		)	(19,234		)	(28,180		)
Transaction, investment and servicing expense	(276		)	—			(45		)	267			(54		)	(475		)	(529		)
Interest expense on real estate	—			—			(8,570		)	—			(8,570		)	(5,037		)	(13,607		)
Depreciation and amortization	—			—			(13,084		)	—			(13,084		)	(14,578		)	(27,662		)
Administrative expense	(289		)	(387		)	(57		)	(2,905		)	(3,638		)	(3,015		)	(6,653		)
Unrealized gain on mortgage loans and obligations held in securitization trusts, net	—			666			—			363			1,029			—			1,029
Realized gain on mortgage loans and obligations held in securitization trusts, net	—			48			—			—			48			—			48
Other gain (loss), net	—			(4,070		)	235			8			(3,827		)	(1,252		)	(5,079		)
Income (loss) before equity in earnings of unconsolidated ventures and income taxes	15,410			1,636			(563		)	(14,211		)	2,272			(8,994		)	(6,722		)
Equity in earnings of unconsolidated ventures	18,368			—			—			—			18,368			2,942			21,310
Income tax benefit (expense)	(12		)	—			2,382			(382		)	1,988			(1,619		)	369
Net income (loss)	$	33,766		$	1,636		$	1,819		$	(14,593	)	$	22,628		$	(7,671	)	$	14,957

_________________________________________

(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, 2019, $0.4 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

The following table presents total assets by segment as of March 31, 2020 and December 31, 2019 (dollars in thousands):



	Core
Total Assets	Senior and Mezzanine Loans and Preferred Equity⁽¹⁾		CRE Debt Securities		Net Leased Real Estate		Corporate⁽²⁾		Total Core Portfolio		Legacy, Non-Strategic Portfolio⁽³⁾		Total
March 31, 2020	$	2,361,830	$	2,073,016	$	1,119,067	$	899,259	$	6,453,172	$	740,416	$	7,193,588
December 31, 2019	2,464,963		2,226,448		1,181,609		496,714		6,369,734		1,044,572		7,414,306

_________________________________________


(1)	Includes investments in unconsolidated ventures totaling $577.2 million and $585.0 million as of March 31, 2020 and December 31, 2019, respectively.


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


(3)	Includes PE Investments totaling $8.8 million and $10.3 million as of March 31, 2020 and December 31, 2019, respectively.

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. Geography information on total income includes equity in earnings of unconsolidated ventures. Geography information on total income and long lived assets are presented as follows (dollars in thousands):



	Three Months Ended March 31,
	2020		2019
Total income by geography:
United States	$	124,953	$	148,790
Europe	20,795		12,681
Other	—		35
Total⁽¹⁾	$	145,748	$	161,506



	March 31, 2020		December 31, 2019
Long-lived assets by geography:
United States	$	1,062,789	$	1,282,189
Europe	262,706		315,369
Total⁽²⁾	$	1,325,495	$	1,597,558

_________________________________________


(1)	Includes interest income, interest income on mortgage loans held in securitization trusts, property and other income and equity in earnings of unconsolidated ventures.

(2)

Long-lived assets are comprised of real estate and real estate related intangible assets, and excludes financial instruments and assets held for sale.

Earnings Per Share

3 Months Ended

Mar. 31, 2020

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, 2020 and 2019 consist of the following (dollars in thousands, except per share data):



	Three Months Ended March 31,
	2020			2019
Net income (loss)	$	(80,141	)	$	14,957
Net (income) loss attributable to noncontrolling interests:
Investment Entities	(523		)	298
Operating Partnership	1,892			(347		)
Net income (loss) attributable to Colony Credit Real Estate, Inc. common stockholders	$	(78,772	)	$	14,908

Numerator:
Net income allocated to participating securities (nonvested shares)	$	(322	)	$	(466	)
Net income (loss) attributable to common stockholders	$	(79,094	)	$	14,442

Denominator:
Weighted average shares outstanding⁽¹⁾⁽²⁾	128,487			127,943

Net income (loss) per common share - basic and diluted⁽²⁾	$	(0.62	)	$	0.11

_________________________________________


(1)	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 CLNY Investment Entities, the Company’s predecessor for accounting purposes. On February 1, 2019, the Class B-3 common stock automatically converted to Class A common stock on a one-for-one basis.

(2)

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, 2020
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Dividends The COVID-19 pandemic has caused extraordinary volatility and unprecedented market conditions, including actual and unanticipated consequences to the Company and certain investments, which may continue. Having paid monthly dividends on its common stock through March 31, 2020, the Company and its Board of Directors determined it was prudent and in the Company’s best interests to conserve available liquidity and suspended the Company’s monthly stock dividend beginning with the monthly period ending April 30, 2020. The Board of Directors will evaluate dividends in future periods based upon customary considerations, including market conditions. Importantly, the Company continues to monitor its taxable income to ensure that the Company meets the minimum distribution requirements to maintain its status as a REIT for the year ending December 31, 2020. Protective Advance The Company holds a $189.0 million investment in a mezzanine loan and preferred equity investment in a development project in Los Angeles County which includes a hospitality and retail renovation and a new condominium tower construction. The Company’s investment is held in a joint venture with affiliates of its Manager (the “Mezzanine Lender”). On April 30, 2020, the Company made its pro-rata $12.9 million share of the Mezzanine Lender’s $34.7 million protective advance to the senior lender while reserving all rights and remedies as Mezzanine Lender. In addition, the Company may fund approximately $2.5 million, representing its ratable share among other funding joint venture participants, of an approximate $5.1 million shortfall to the protective advance as a result of a single investor non-funding event. Hedge Unwinds In April 2020, the Company unwound a portion of its interest rate swaps and in connection with this expects to realize a loss of approximately $16.4 million during the second quarter of 2020, which was previously recorded as an unrealized loss as of March 31, 2020. The Company also called back $15.9 million in net cash collateral to counterparties for its derivative contracts. As of May 7, 2020, those counterparties held $17.4 million in cash collateral. Bank Credit Facility and Master Repurchase Facilities On May 6, 2020, the Company amended its Bank Credit Facility to: (i) reduce the minimum tangible net worth covenant requirement from $2.1 billion to $1.5 billion, providing portfolio management flexibilities as a result of any disruptions in investments caused by COVID-19 or other factors; (ii) reduce the facility size from $560.0 million to $450.0 million (noting current borrowings of $299.0 million); (iii) limit dividends in line with taxable income and restrict stock repurchases, each for liquidity preservation purpose; and (iv) focus new investments on senior mortgages. In addition, on May 7, 2020, the Company amended the tangible net worth covenant under all six of the Company’s Master Repurchase Facilities consistent with the Bank Credit Facility. CMBS Credit Facilities In April 2020, the Company consolidated its CMBS Credit Facilities with one existing counterparty bank. With doing so, the Company paid down its CMBS Credit Facilities borrowing advance rate to a blended borrowing advance rate of 62% and extended the repurchase date on all such borrowings to June 30, 2020. This $73.9 million paydown allows for a 15% additional loss on a bond specific basis before further margin calls. As of May 7, 2020, the Company had $123.5 million outstanding under its CMBS Credit Facilities. The financing bears a fixed interest rate of 4.50%. Investment Sales Subsequent to March 31, 2020, the Company sold two loans in its Legacy, Non-Strategic Portfolio for total gross proceeds of $23.5 million. The Company will recognize a gain of approximately $6.8 million during the second quarter of 2020. Additionally, the Company sold one real estate property in its Legacy, Non-Strategic Portfolio for total gross proceeds of $1.0 million. The Company will recognize a loss of approximately $0.1 million. On April 22, 2020, the Company completed a discounted payoff of its four NY hospitality loans and related investment interests. The Company recorded $36.8 million of provision for loan losses during the three months ended March 31, 2020.

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Basis of Presentation

The Combination

Use of Estimates

Principles of Consolidation

Variable Interest Entities

Consolidated VIEs

Investing VIEs

Unconsolidated VIEs

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, 2020.

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.

Noncontrolling Interests

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

Cash and Cash Equivalents

Restricted Cash

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

Loans and Preferred Equity Held for Investment

Loans Held for Sale

Acquisition, Development and Construction (“ADC”) Arrangements

Operating Real Estate

Real Estate Held for Investment

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

Depreciation—Real estate held for investment, other than land, is 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 48 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		1 to 15 years
Tenant improvements		Lesser of the useful life or remaining term of the lease
Furniture, fixtures and equipment		2 to 8 years

Real Estate Held for Sale

Foreclosed Properties

Real Estate Securities

Impairment

Investments in Unconsolidated Ventures

Equity Method Investments

Impairment

For investments under the measurement alternative, if carrying value of the investment exceeds its fair value, an impairment is deemed to have occurred.

Identified Intangibles

Identifiable Intangibles

Transfers of Financial Assets

Derivative Instruments and Hedging Activities

Changes in fair value of derivatives not designated as accounting hedges are recorded in the statement of operations in other gain (loss), net.

Financing Costs

Revenue Recognition

Property Operating Income

Property operating income includes the following:

Real Estate Securities

Foreign Currency

Disclosures of non-U.S. dollar amounts to be recorded in the future are translated using exchange rates in effect at the date of the most recent balance sheet presented.

Equity Based Compensation

Equity-Based Compensation

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

Income Taxes

Recent Accounting Pronouncements

Accounting Standards Adopted in 2020

Upon adoption of ASU 2016-13 on January 1, 2020 the Company recorded the following (dollars in thousands):



	Impact of ASU 2016-13 Adoption
Assets:
CECL reserve on Loans and preferred equity held for investment, net	$	21,093
Liabilities:
CECL reserve on Accrued and other liabilities	2,093
Total Impact of ASU 2016-13 adoption on Accumulated deficit	$	23,186

The following discussion highlights changes to the Company’s accounting policies as a result of this adoption.

CECL reserve


1.	Very Low Risk-The loan is performing as agreed. The underlying property performance has exceeded underwritten expectations with very strong net operating income (”NOI”), debt service coverage ratio, debt yield and occupancy metrics. Sponsor is investment grade, very well capitalized, and employs very experienced management team.


2.	Low Risk-The loan is performing as agreed. The underlying property performance has met or exceeds underwritten expectations with high occupancy at market rents, resulting in consistent cash flow to service the debt. Strong sponsor that is well capitalized with experienced management team.


3.	Average Risk-The loan is performing as agreed. The underlying property performance is consistent with underwriting expectations. The property generates adequate cash flow to service the debt, and/or there is enough reserve or loan structure to provide time for sponsor to execute the business plan. Sponsor has routinely met its obligations and has experience owning/operating similar real estate.

Future Application of Accounting Standards

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2020

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, 2020 (dollars in thousands):



	Carrying Value		Maximum Exposure to Loss
Real estate securities, available for sale	$	179,572	$	238,080
Investments in unconsolidated ventures	499,549		531,730
Loans and preferred equity held for investment, net	17,587		17,587
Total assets	$	696,708	$	787,397



	March 31, 2020		December 31, 2019
Assets
Mortgage loans held in a securitization trust, at fair value	$	1,822,991	$	1,872,970
Receivables, net	7,081		7,020
Total assets	$	1,830,072	$	1,879,990
Liabilities
Mortgage obligations issued by a securitization trust, at fair value	$	1,732,388	$	1,762,914
Accrued and other liabilities	6,247		6,267
Total liabilities	$	1,738,635	$	1,769,181



	Three Months Ended March 31,
	2020			2019
Statement of Operations
Interest expense	$	(185	)	$	(263	)
Interest income on mortgage loans held in securitization trusts	20,555			38,476
Interest expense on mortgage obligations issued by securitization trusts	(18,059		)	(35,635		)
Net interest income	2,311			2,578
Administrative expense	(515		)	(359		)
Unrealized gain (loss) on mortgage loans and obligations held in securitization trusts, net	(19,452		)	1,029
Realized gain on mortgage loans and obligations held in securitization trusts, net	—			48
Net income attributable to Colony Credit Real Estate, Inc. common stockholders	$	(17,656	)	$	3,296

Schedule of Operating Real Estate Estimated Useful Lives

Depreciation—Real estate held for investment, other than land, is 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 48 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		1 to 15 years
Tenant improvements		Lesser of the useful life or remaining term of the lease
Furniture, fixtures and equipment		2 to 8 years

Schedule of adoption of ASU 2016-13

Upon adoption of ASU 2016-13 on January 1, 2020 the Company recorded the following (dollars in thousands):



	Impact of ASU 2016-13 Adoption
Assets:
CECL reserve on Loans and preferred equity held for investment, net	$	21,093
Liabilities:
CECL reserve on Accrued and other liabilities	2,093
Total Impact of ASU 2016-13 adoption on Accumulated deficit	$	23,186

Loans and Preferred Equity Held for Investment, net

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

Loans and Preferred Equity Held for Investment, net and Loans Held for Sale (Tables)

3 Months Ended

Mar. 31, 2020

Receivables [Abstract]

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



	March 31, 2020								December 31, 2019
	Unpaid Principal Balance		Carrying Value			Weighted Average Coupon⁽¹⁾		Weighted Average Maturity in Years	Unpaid Principal Balance		Carrying Value			Weighted Average Coupon⁽¹⁾		Weighted Average Maturity in Years
Fixed rate
Mezzanine loans	$	126,807	$	125,993		12.7	%	4.8	$	223,395	$	222,503		12.8	%	4.2
Preferred equity interests	116,901		116,856			12.5	%	6.6	115,384		115,313			12.5	%	6.9
Other loans⁽²⁾	12,731		12,621			15.0	%	4.2	12,572		12,448			15.0	%	4.4
	256,439		255,470						351,351		350,264
Variable rate
Senior loans	1,135,358		1,130,218			5.6	%	3.9	1,462,467		1,457,738			6.0	%	3.8
Securitized loans⁽³⁾	1,006,495		1,002,705			5.1	%	4.0	1,006,495		1,002,696			5.2	%	4.2
Mezzanine loans	14,959		15,079			10.7	%	2.3	38,110		38,258			11.4	%	2.0
	2,156,812		2,148,002						2,507,072		2,498,692
	2,413,251		2,403,472						2,858,423		2,848,956

Allowance for loan losses	NA		(52,194		)				NA		(272,624		)
Loans and preferred equity held for investment, net	$	2,413,251	$	2,351,278					$	2,858,423	$	2,576,332

_________________________________________


(1)	Calculated based on contractual interest rate.


(2)	Includes one corporate term loan secured by the borrower’s limited partnership interests in a fund at March 31, 2020 and December 31, 2019.


(3)	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 and preferred equity held for investment, net was as follows (dollars in thousands):



	Carrying Value
Balance at January 1, 2020	$	2,576,332
Acquisitions/originations/additional funding	37,452
Loan maturities/principal repayments	(176,021		)
Transfer to loans held for sale	(16,625		)
Discount accretion/premium amortization	2,215
Capitalized interest	3,171
Provision for loan losses⁽¹⁾⁽²⁾	(69,686		)
Effect of CECL adoption⁽³⁾	(21,093		)
Charge-off	15,533
Balance at March 31, 2020	$	2,351,278

_________________________________________


(1)	Provision for loan losses excludes $0.2 million determined by the Company’s PD/LGD model for unfunded commitments reported on the consolidated statement of operations, with a corresponding offset to other liabilities recorded on the Company’s consolidated balance sheets.


(2)	Includes $28.8 million related to the Company’s PD/LGD model, $36.8 million recorded on four NY hospitality loans and $2.3 million related to the Midwest hospitality loan both of which were evaluated individually and $1.8 million related to the discounted payoff of loans during the quarter. See further discussion in “Nonaccrual and Past Due Loans and Preferred Equity.”

(3)

Calculated by the Company’s PD/LGD model upon CECL adoption on January 1, 2020. See Note 2, “Summary of Significant Accounting Polices” for further details.

Aging Summary of Loans

The following table provides an aging summary of loans and preferred equity held for investment at carrying values before allowance for loan losses, if any (dollars in thousands):



	Current or Less Than 30 Days Past Due		30-59 Days Past Due⁽¹⁾		60-89 Days Past Due		90 Days or More Past Due⁽¹⁾⁽²⁾		Total Loans
March 31, 2020	$	2,373,626	$	—	$	—	$	29,846	$	2,403,472
December 31, 2019	2,558,505		32,322		—		258,129		2,848,956

_________________________________________


(1)	At December 31, 2019, 30-59 days past due includes one loan (Midwest Hospitality) that was placed on non-accrual status during the fourth quarter of 2019 following a borrower default. At March 31, 2020, the Midwest Hospitality loan is 90 days or more past due.

(2)

Impaired Loans

The following table presents impaired loans at December 31, 2019 (dollars in thousands):



	Unpaid Principal Balance⁽¹⁾		Gross Carrying Value
	Unpaid Principal Balance⁽¹⁾		With Allowance for Loan Losses⁽²⁾		Without Allowance for Loan Losses		Total⁽²⁾		Allowance for Loan Losses
December 31, 2019	$	408,058	$	377,421	$	32,322	$	409,743	$	272,624

_________________________________________


(1)	Includes four NY hospitality loans to the same borrower and secured by the same collateral with combined unpaid principal balance of $257.2 million and gross carrying value of $258.1 million on nonaccrual status. All other loans included in this table remain current on interest payments. The four loans were classified as held for sale at March 31, 2020 and sold in April 2020.


(2)	Includes unpaid principal balance plus any applicable exit fees less net deferred loan fees.

The average carrying value and interest income recognized on impaired loans for the three months ended March 31, 2019 were as follows (dollars in thousands):



	Three Months Ended March 31,
	2019
Average carrying value before allowance for loan losses	$	390,376
Interest income	1,476

Allowance for Loan Losses

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



	Three Months Ended March 31,
	2020			2019
Allowance for loan losses at beginning of period	$	272,624		$	109,328
Effect of CECL adoption⁽¹⁾	21,093			—
Provision for loan losses⁽²⁾⁽³⁾	69,686			—
Charge-off	(15,533		)	(31,696		)
Transfer to loans held for sale	(295,676		)	—
Allowance for loan losses at end of period	$	52,194		$	77,632

_________________________________________


(1)	Calculated by the Company’s PD/LGD model upon CECL adoption on January 1, 2020. See Note 2, “Summary of Significant Accounting Policies” for further details.


(2)	Provision for loan losses excludes $0.2 million calculated by the Company’s PD/LGD model for unfunded commitments reported on the consolidated statement of operations, with a corresponding offset to other liabilities recorded on the Company’s consolidated balance sheets.

(3)

Includes $28.8 million related to the Company’s PD/LGD model, $36.8 million recorded on four NY hospitality loans and $2.3 million related to the Midwest hospitality loan, both of which were evaluated individually, and $1.8 million related to the discounted payoff of loans during the quarter. See further discussion in “Nonaccrual and Past Due Loans and Preferred Equity.”

Schedule of Assets Held for Sale Related to Loans and Preferred Equity

The following table summarizes the Company’s assets held for sale related to loans and preferred equity (dollars in thousands):



	March 31, 2020		December 31, 2019
Assets
Loans and preferred equity held for investment, net	$	21,191	$	5,016
Total assets held for sale	$	21,191	$	5,016

Summary of Loans and Preferred Equity Held for Investment by Year of Origination and Credit Quality Risk Ranking



	2020		2019		2018		2017		2016		Prior		Total
Senior loans
Risk Rankings:
3	$	—	$	377,975	$	292,224	$	33,581	$	—	$	—	$	703,780
4	—		798,721		603,534		—		—		—		1,402,255
5	—		—		—		—		—		29,846		29,846
Total Senior loans	—		1,176,696		895,758		33,581		—		29,846		2,135,881

Mezzanine loans
Risk Rankings:
3	—		—		—		—		—		—		—
4	—		69,674		51,785		12,120		—		4,534		138,113
Total Mezzanine loans	—		69,674		51,785		12,120		—		4,534		138,113

Preferred equity interests and other
Risk Rankings:
4	—		12,621		116,857		—		—		—		129,478
Total Preferred equity interests and other	—		12,621		116,857		—		—		—		129,478

Total Loans and preferred equity held for investment	$	—	$	1,258,991	$	1,064,400	$	45,701	$	—	$	34,380	$	2,403,472

Investments in Unconsolidated Ventures (Tables)

3 Months Ended

Mar. 31, 2020

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, 2020		December 31, 2019
Equity method investments	$	577,230	$	585,022
Investments under fair value option	8,764		10,283
Investments in Unconsolidated Ventures	$	585,994	$	595,305

Summary of Equity Method Investments

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



		Carrying Value
Investments	Description	March 31, 2020		December 31, 2019
ADC investments⁽¹⁾⁽²⁾	Interests in three 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	$	59,047	$	59,576
Other investment ventures⁽¹⁾	Interests in nine investments, each with less than $171.5 million carrying value at March 31, 2020	518,183		525,446

_________________________________________

(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 Securities, Available for Sale (Tables)

3 Months Ended

Mar. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Schedule of the CMBS Investments

The following table presents CMBS investments as of March 31, 2020 and December 31, 2019 (dollars in thousands):



																Weighted Average
		Principal Amount⁽¹⁾		Total Discount			Amortized Cost		Cumulative Unrealized on Investments					Fair Value		Coupon⁽²⁾		Unleveraged Current Yield
As of Date:	Count	Principal Amount⁽¹⁾		Total Discount			Amortized Cost		Gain		(Loss)			Fair Value		Coupon⁽²⁾		Unleveraged Current Yield
March 31, 2020	43	$	292,284	$	(54,204	)	$	238,080	$	—	$	(58,508	)	$	179,572	3.19	%	7.12	%
December 31, 2019	43	292,284		(55,981		)	236,303		17,084		(563		)	252,824		3.19	%	7.12	%

_________________________________________


(1)	CRE securities serve as collateral for financing transactions including carrying value of $178.3 million as of March 31, 2020 for the CMBS Credit Facilities (refer to Note 9, “Debt,” for further detail). The remainder is unleveraged.

(2)

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, 2020 (dollars in thousands):



	Carrying Value		Maximum Exposure to Loss
Real estate securities, available for sale	$	179,572	$	238,080
Investments in unconsolidated ventures	499,549		531,730
Loans and preferred equity held for investment, net	17,587		17,587
Total assets	$	696,708	$	787,397



	March 31, 2020		December 31, 2019
Assets
Mortgage loans held in a securitization trust, at fair value	$	1,822,991	$	1,872,970
Receivables, net	7,081		7,020
Total assets	$	1,830,072	$	1,879,990
Liabilities
Mortgage obligations issued by a securitization trust, at fair value	$	1,732,388	$	1,762,914
Accrued and other liabilities	6,247		6,267
Total liabilities	$	1,738,635	$	1,769,181



	Three Months Ended March 31,
	2020			2019
Statement of Operations
Interest expense	$	(185	)	$	(263	)
Interest income on mortgage loans held in securitization trusts	20,555			38,476
Interest expense on mortgage obligations issued by securitization trusts	(18,059		)	(35,635		)
Net interest income	2,311			2,578
Administrative expense	(515		)	(359		)
Unrealized gain (loss) on mortgage loans and obligations held in securitization trusts, net	(19,452		)	1,029
Realized gain on mortgage loans and obligations held in securitization trusts, net	—			48
Net income attributable to Colony Credit Real Estate, Inc. common stockholders	$	(17,656	)	$	3,296

Schedule of Operating Real Estate Properties

+ References + Details

Real Estate, net and Real Estate Held for Sale (Tables)

3 Months Ended

Mar. 31, 2020

Real Estate [Abstract]

The following table presents the Company’s net lease portfolio, net, as of March 31, 2020, and December 31, 2019 (dollars in thousands):



	March 31, 2020			December 31, 2019
Land and improvements	$	200,742		$	209,693
Buildings, building leaseholds, and improvements	860,681			899,889
Tenant improvements	23,543			25,077
Construction-in-progress	1,026			415
Subtotal	$	1,085,992		$	1,135,074
Less: Accumulated depreciation	(68,977		)	(63,995		)
Less: Impairment⁽¹⁾	(23,911		)	(23,911		)
Net lease portfolio, net	$	993,104		$	1,047,168

_________________________________________


(1)	See Note 14, “Fair Value,” for discussion of impairment of real estate.



	March 31, 2020			December 31, 2019
Land and improvements	$	60,994		$	91,997
Buildings, building leaseholds, and improvements	346,439			536,046
Tenant improvements	24,708			38,230
Furniture, fixtures and equipment	179			3,183
Construction-in-progress	4,665			6,325
Subtotal	$	436,985		$	675,781
Less: Accumulated depreciation	(30,685		)	(46,079		)
Less: Impairment⁽¹⁾	(172,416		)	(192,074		)
Other portfolio, net	$	233,884		$	437,628

_________________________________________

(1)

See Note 14, “Fair Value,” for discussion of impairment of real estate.

Property Operating Income

For the three months ended March 31, 2020 and 2019, the components of property operating income were as follows (dollars in thousands):



	Three Months Ended March 31,
	2020		2019
Lease revenues⁽¹⁾
Minimum lease revenue	$	41,958	$	44,528
Variable lease revenue	6,649		6,656
	$	48,607	$	51,184
Hotel operating income	3,501		11,334
	$	52,108	$	62,518

_________________________________________

(1)

Excludes net amortization income related to above and below-market leases of $0.8 million and $1.2 million for the three months ended March 31, 2020, respectively.

Schedule of Future Minimum Rental Income under Non-cancellable Operating Leases, 2019

The following table presents approximate future minimum rental income under noncancellable operating leases, excluding variable lease revenue of tenant reimbursements, to be received over the next five years and thereafter as of March 31, 2020 (dollars in thousands):



Remainder of 2020	$	87,398
2021	106,896
2022	99,485
2023	84,071
2024	73,324
2025 and thereafter	466,713
Total⁽¹⁾	$	917,887

_________________________________________

(1)

Excludes minimum future rents for real estate that is classified as held for sale totaling $40.9 million through 2046

Schedule of Future Minimum Rental Income under Non-cancellable Operating Leases, 2018



2020	$	120,967
2021	113,170
2022	102,314
2023	85,367
2024	71,714
2025 and thereafter	448,812
Total	$	942,344

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the Company’s real estate asset acquisitions for the year ended December 31, 2019 (dollars in thousands):



					Purchase Price Allocation
Acquisition Date	Property Type and Location	Number of Buildings	Purchase Price⁽¹⁾		Land and Improvements⁽²⁾		Building and Improvements⁽²⁾		Furniture, Fixtures and Equipment		Lease Intangible Assets⁽²⁾		Other Assets		Other Liabilities
Year Ended December 31, 2019
June	Retail - Massachusetts⁽³⁾	3	$	21,919	$	9,294	$	6,598	$	—	$	5,256	$	1,538	$	(767	)
January	Various - in U.S.⁽³⁾	28	105,437		38,145		66,413		—		879		3,223		(3,223		)
			$	127,356	$	47,439	$	73,011	$	—	$	6,135	$	4,761	$	(3,990	)

_________________________________________


(1)	Dollar amounts of purchase price and allocation to assets acquired and liabilities assumed are translated using foreign exchange rate as of the respective dates of acquisitions, where applicable.


(2)	Useful life of real estate acquired is 4 to 33 years for buildings, 1 to 20 years for site improvements, 1 to 27 years for tenant improvements, 5 to 7 years for furniture, fixtures and equipment, and 1 to 27 years for lease intangibles.

(3)

Represents assets acquired by the Company through foreclosure.

Schedule of Operating Real Estate Held for Sale

The following table summarizes the Company’s assets and related liabilities held for sale related to real estate (dollars in thousands):



	March 31, 2020		December 31, 2019
Assets
Real estate, net	$	229,252	$	178,564
Deferred leasing costs and intangible assets, net	8,722		5,890
Total assets held for sale	$	237,974	$	184,454

Liabilities
Intangible liabilities, net	$	10,842	$	294
Total liabilities related to assets held for sale	$	10,842	$	294

Deferred Leasing Costs and Other Intangibles (Tables)

3 Months Ended

Mar. 31, 2020

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, excluding those related to assets held for sale, at March 31, 2020 and December 31, 2019 are as follows (dollars in thousands):



	March 31, 2020
	Carrying Amount		Accumulated Amortization			Net Carrying Amount
Deferred Leasing Costs and Intangible Assets
In-place lease values	$	98,820	$	(33,841	)	$	64,979
Deferred leasing costs	40,575		(13,593		)	26,982
Above-market lease values	13,045		(6,499		)	6,546
	$	152,440	$	(53,933	)	$	98,507
Intangible Liabilities
Below-market lease values	$	19,492	$	(8,944	)	$	10,548



	December 31, 2019
	Carrying Amount		Accumulated Amortization			Net Carrying Amount
Deferred Leasing Costs and Intangible Assets
In-place lease values	$	115,139	$	(39,093	)	$	76,046
Deferred leasing costs	42,345		(13,637		)	28,708
Above-market lease values	14,318		(6,310		)	8,008
	$	171,802	$	(59,040	)	$	112,762
Intangible Liabilities
Below-market lease values	$	32,652	$	(10,503	)	$	22,149

Schedule of Deferred Leasing Costs



	March 31, 2020
	Carrying Amount		Accumulated Amortization			Net Carrying Amount
Deferred Leasing Costs and Intangible Assets
In-place lease values	$	98,820	$	(33,841	)	$	64,979
Deferred leasing costs	40,575		(13,593		)	26,982
Above-market lease values	13,045		(6,499		)	6,546
	$	152,440	$	(53,933	)	$	98,507
Intangible Liabilities
Below-market lease values	$	19,492	$	(8,944	)	$	10,548



	December 31, 2019
	Carrying Amount		Accumulated Amortization			Net Carrying Amount
Deferred Leasing Costs and Intangible Assets
In-place lease values	$	115,139	$	(39,093	)	$	76,046
Deferred leasing costs	42,345		(13,637		)	28,708
Above-market lease values	14,318		(6,310		)	8,008
	$	171,802	$	(59,040	)	$	112,762
Intangible Liabilities
Below-market lease values	$	32,652	$	(10,503	)	$	22,149

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, 2020 and 2019 (dollars in thousands):



	Three Months Ended March 31,
	2020			2019
Above-market lease values	$	(832	)	$	(1,013	)
Below-market lease values	1,236			1,625
Net increase (decrease) to property operating income	$	404		$	612

In-place lease values	$	4,350		$	5,474
Deferred leasing costs	1,647			2,139
Other intangibles	(24		)	119
Amortization expense	$	5,973		$	7,732

Schedule of Future Amortization Expense




	2020			2021			2022			2023			2024			2025 and thereafter			Total
Above-market lease values	$	1,844		$	1,672		$	1,351		$	696		$	516		$	467		$	6,546
Below-market lease values	(3,347		)	(4,043		)	(2,875		)	(178		)	(44		)	(61		)	(10,548		)
Net increase (decrease) to property operating income	$	(1,503	)	$	(2,371	)	$	(1,524	)	$	518		$	472		$	406		$	(4,002	)

In-place lease values	$	9,632		$	10,269		$	7,500		$	4,680		$	3,737		$	29,161		$	64,979
Deferred leasing costs	4,712			5,047			4,252			3,086			1,863			8,022			26,982
Amortization expense	$	14,344		$	15,316		$	11,752		$	7,766		$	5,600		$	37,183		$	91,961

Restricted Cash, Other Assets and Accrued and Other Liabilities (Tables)

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Restricted Cash

The following table presents a summary of restricted cash as of March 31, 2020 and December 31, 2019 (dollars in thousands):



	March 31, 2020		December 31, 2019
Restricted cash:
Margin pledged as collateral	$	83,401	$	19,536
Borrower escrow deposits	49,499		74,496
Real estate escrow reserves	15,132		18,020
Capital expenditure reserves	7,029		8,882
Working capital and other reserves	3,231		4,198
Tenant lockboxes	1,229		933
Total	$	159,521	$	126,065

Summary of Other Assets

The following table presents a summary of other assets as of March 31, 2020 and December 31, 2019 (dollars in thousands):



	March 31, 2020		December 31, 2019
Other assets:
Right-of-use lease asset	$	24,255	$	25,480
Prepaid taxes and deferred tax assets	22,440		21,989
Deferred financing costs, net - credit facilities	7,815		8,382
Prepaid expenses	6,568		5,311
Investment deposits and pending deal costs	935		20,779
Other assets	621		1,644
Derivative asset	9		4,122
Total	$	62,643	$	87,707

Summary of Other Liabilities

The following table presents a summary of accrued and other liabilities as of March 31, 2020 and December 31, 2019 (dollars in thousands):



	March 31, 2020		December 31, 2019
Accrued and other liabilities:
Derivative liability	$	33,344	$	19,133
Current and deferred tax liability	28,679		31,510
Operating lease liability	24,295		25,495
Accounts payable, accrued expenses and other liabilities	23,273		28,278
Interest payable	17,103		16,259
Prepaid rent and unearned revenue	14,464		16,744
Tenant security deposits	2,459		3,005
Unfunded CECL loan allowance	2,339		—
Total	$	145,956	$	140,424

Debt (Tables)

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Summary of Debt

The following table presents debt as of March 31, 2020 and December 31, 2019 (dollars in thousands):



							March 31, 2020				December 31, 2019
	Capacity ($)		Recourse vs. Non-Recourse⁽¹⁾	Final Maturity	Contractual Interest Rate		Principal Amount⁽²⁾		Carrying Value⁽²⁾		Principal Amount⁽²⁾		Carrying Value⁽²⁾
Securitization bonds payable, net
CLNC 2019-FL1⁽³⁾			Non-recourse	Aug-35	LIBOR + 1.59%		$	840,423	$	833,671	$	840,423	$	833,153
Subtotal securitization bonds payable, net							840,423		833,671		840,423		833,153

Mortgage and other notes payable, net
Net lease 6⁽⁴⁾			Non-recourse	Oct-27	4.45%		23,990		23,990		24,117		24,117
Net lease 5⁽⁵⁾			Non-recourse	Nov-26	4.45%		3,406		3,317		3,422		3,329
Net lease 4⁽⁵⁾			Non-recourse	Nov-26	4.45%		7,349		7,157		7,384		7,184
Net lease 3⁽⁵⁾			Non-recourse	Jun-21	4.00%		12,364		12,296		12,450		12,368
Net lease 6⁽⁵⁾			Non-recourse	Jul-23	LIBOR + 2.15%		1,550		1,510		1,658		1,615
Net lease 5⁽⁴⁾			Non-recourse	Aug-26	4.08%		31,677		31,406		31,821		31,539
Net lease 1⁽⁵⁾⁽⁶⁾			Non-recourse	Nov-26	4.45%		18,492		18,007		18,579		18,076
Net lease 1⁽⁷⁾			Non-recourse	Mar-28	4.38%		12,166		11,716		12,221		11,758
Net lease 4⁽⁴⁾			Non-recourse	Apr-21⁽⁸⁾	LIBOR + 2.50%		74,916		74,916		74,916		74,845
Net lease 1⁽⁴⁾			Non-recourse	Jul-25	4.31%		250,000		247,090		250,000		246,961
Net lease 2⁽⁴⁾⁽⁹⁾			Non-recourse	Jun-25	3.91%		152,768		154,934		181,952		184,532
Net lease 3⁽⁴⁾			Non-recourse	Sep-33	4.77%		200,000		198,541		200,000		198,521
Other real estate 4⁽⁵⁾			Non-recourse	Dec-23	4.84%		42,705		43,152		42,925		43,407
Other real estate 2^(5)(10)			Non-recourse	Dec-23	4.94%		—		—		42,443		42,851
Other real estate 8⁽⁵⁾			Non-recourse	Jan-24	5.15%		15,764		16,270		15,819		16,324
Other real estate 10^(5)(11)			Non-recourse	Dec-20	5.34%		11,683		11,879		11,744		11,939
Other real estate 9⁽⁵⁾			Non-recourse	Nov-26	3.98%		23,774		23,022		23,885		23,133
Other real estate 1⁽⁵⁾			Non-recourse	Oct-24	4.47%		108,311		109,019		108,719		109,475
Other real estate 3⁽⁵⁾			Non-recourse	Jan-25	4.30%		74,803		74,148		75,256		74,554
Other real estate 5^(5)(10)			Non-recourse	Apr-23	LIBOR + 4.00%		—		—		33,498		32,801
Other real estate 6^(5)(12)			Non-recourse	Apr-24	LIBOR + 2.95%		21,500		20,922		21,500		20,825
Loan 9⁽¹³⁾			Non-recourse	Jun-24	LIBOR + 3.00%		69,559		69,559		65,958		65,958
Subtotal mortgage and other notes payable, net							1,156,777		1,152,851		1,260,267		1,256,112

Bank credit facility
Bank credit facility⁽¹⁴⁾	$	560,000	Recourse	Feb-23⁽¹⁵⁾	LIBOR + 2.25%		340,000		340,000		113,500		113,500
Subtotal bank credit facility							340,000		340,000		113,500		113,500

Master repurchase facilities
Bank 1 facility 3	$	400,000	Limited Recourse⁽¹⁶⁾	Apr-23⁽¹⁷⁾	LIBOR + 1.93%	(18)	109,404		109,404		106,309		106,309
Bank 2 facility 3	200,000		Limited Recourse⁽¹⁶⁾	Oct-22⁽¹⁹⁾	LIBOR + 2.50%	(18)	22,750		22,750		22,750		22,750
Bank 3 facility 3	600,000		Limited Recourse⁽¹⁶⁾	Apr-22	LIBOR + 2.19%	(18)	222,147		222,147		265,633		265,633
Bank 7 facility 1	500,000		Limited Recourse⁽¹⁶⁾	Apr-22⁽²⁰⁾	LIBOR + 1.93%	(18)	199,740		199,740		221,421		221,421
Bank 8 facility 1	250,000		Limited Recourse⁽¹⁶⁾	Jun-21⁽²¹⁾	LIBOR + 2.00%	(18)	168,987		168,987		164,098		164,098
Bank 9 facility 1	300,000		⁽²²⁾	Nov-23⁽²³⁾	(24)	(18)	—		—		—		—
Subtotal master repurchase facilities	$	2,250,000					723,028		723,028		780,211		780,211



						March 31, 2020				December 31, 2019
	Capacity ($)	Recourse vs. Non-Recourse⁽¹⁾	Final Maturity	Contractual Interest Rate		Principal Amount⁽²⁾		Carrying Value⁽²⁾		Principal Amount⁽²⁾		Carrying Value⁽²⁾
CMBS credit facilities
Bank 1 facility 1		Recourse	(25)	LIBOR + 1.82%	(18)	13,477		13,477		20,375		20,375
Bank 1 facility 2		Recourse	(25)	LIBOR + 3.00%	(18)	12,907		12,907		18,834		18,834
Bank 3 facility		Recourse	(25)	NA	(26)	—		—		—		—
Bank 4 facility		Recourse	(25)	NA	(26)	—		—		—		—
Bank 5 facility 1		Recourse	(25)	NA	(26)	—		—		—		—
Bank 5 facility 2		Recourse	(25)	NA	(26)	—		—		—		—
Bank 6 facility 1		Recourse	(25)	(27)		86,035		86,035		83,584		83,584
Bank 6 facility 2		Recourse	(25)	(27)		84,972		84,972		82,729		82,729
Subtotal CMBS credit facilities						197,391		197,391		205,522		205,522
Subtotal credit facilities						1,260,419		1,260,419		1,099,233		1,099,233

Total						$	3,257,619	$	3,246,941	$	3,199,923	$	3,188,498

_________________________________________


(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)


(4)	Represents a mortgage note collateralized by an investment in the Company’s Core Portfolio.


(5)	Represents a mortgage note collateralized by an investment in the Company’s Legacy, Non-Strategic Portfolio.


(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)	Represents a mortgage note collateralized by three properties in the Company’s Legacy, Non-Strategic Portfolio.


(8)	The current maturity of the mortgage payable is April 2020, with a one-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. The Company exercised this extension option subsequent to March 31, 2020.


(9)	As of March 31, 2020, the outstanding principal of the mortgage payable was NOK 1.6 billion, which translated to $152.8 million.


(10)	Represents a mortgage note that was repaid during the first quarter of 2020 in connection with the sale of the collateralized properties.


(11)	Represents two separate senior mortgage notes with a weighted average maturity of December 2020 and weighted average interest rate of 5.34%.


(12)	The current maturity of the mortgage payable is April 2022, 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)	The current maturity of the note payable is June 2021, with three 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. The loan is included in the Company’s Core Portfolio.


(14)	Facility size reduced on May 6, 2020 to $450.0 million.


(15)	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.


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


(17)	The next maturity date is April 2021, with two 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.


(18)	Represents the weighted average spread as of March 31, 2020. The contractual interest rate depends upon asset type and characteristics and ranges from one-month London Interbank Offered Rates (“LIBOR”) plus 1.10% to 3.00%.


(19)	The next maturity date is October 2020, with two one-year extension options available, which may be subject to the satisfaction of certain customary conditions set forth in the governing documents.


(20)	The next maturity date is April 2021, with a one-year extension available, which may be subject to the satisfaction of certain customary conditions set forth in the governing documents.


(21)	The next maturity date is June 2020, with a one-year extension available, which may be subject to the satisfaction of certain customary conditions set forth in the governing documents.


(22)	Recourse is either 25.0% or 50.0% depending on loan metrics.


(23)	The next maturity date is November 2021, with two one-year extension options available, which may be subject to the satisfaction of certain customary conditions set forth in the governing documents.


(24)	The interest rate will be determined by the lender in its sole discretion.


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


(26)	CMBS Credit Facilities are undrawn and fully available.

(27)

Schedule of Scheduled Principal on Debt



	Total		Securitization Bonds Payable, Net		Mortgage Notes Payable, Net⁽¹⁾		Credit Facilities⁽¹⁾
Remainder of 2020	$	211,060	$	—	$	13,669	$	197,391
2021	258,421		—		89,434		168,987
2022	447,157		—		2,520		444,637
2023	494,529		—		45,125		449,404
2024	217,353		—		217,353		—
2025 and thereafter	1,629,099		840,423		788,676		—
Total	$	3,257,619	$	840,423	$	1,156,777	$	1,260,419

_________________________________________

(1)

Includes $131.3 million of future minimum principal payments related to assets held for sale.

Share-based Payment Arrangement [Abstract]

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

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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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+ Details

Equity-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2020

Summary of Awards Granted or Vested

The table below summarizes our awards granted, forfeited or vested under the 2018 Plan during the three months ended March 31, 2020:



	Number of Shares
	Restricted Stock		Total		Weighted Average Grant Date Fair Value
Unvested Shares at December 31, 2019	1,335,590		1,335,590		$	17.79
Granted	—		—		—
Vested	(427,841	)	(427,841	)	17.36
Forfeited	(172,276	)	(172,276	)	17.25
Unvested shares at March 31, 2020	735,473		735,473		$	17.65

Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2020

Equity [Abstract]

Summary of Distributions Declared

During the three months ended March 31, 2020, the Company declared the following dividends on its common stock:



Declaration Date	Record Date	Payment Date	Per Share
January 15, 2020	January 31, 2020	February 10, 2020	$0.10
February 14, 2020	February 29, 2020	March 10, 2020	$0.10
March 16, 2020	March 31, 2020	April 10, 2020	$0.10

Reclassification out of Accumulated Other Comprehensive Income

Changes in Components of AOCI - Stockholders



(in thousands)	Unrealized gain (loss) on real estate securities, available for sale			Unrealized gain on net investment hedges		Foreign currency translation loss			Total
AOCI at December 31, 2019	$	15,909		$	25,872	$	(13,487	)	$	28,294
Other comprehensive income (loss)	(73,273		)	21,255		(18,981		)	(70,999		)
AOCI at March 31, 2020	$	(57,364	)	$	47,127	$	(32,468	)	$	(42,705	)



(in thousands)	Unrealized gain (loss) on real estate securities, available for sale			Unrealized gain on net investment hedges		Foreign currency translation loss			Total
AOCI at December 31, 2018	$	(1,295	)	$	11,037	$	(10,141	)	$	(399	)
Other comprehensive income (loss)	9,530			7,222		(3,233		)	13,519
AOCI at March 31, 2019	$	8,235		$	18,259	$	(13,374	)	$	13,120

Changes in Components of AOCI - Noncontrolling Interests in the OP



(in thousands)	Unrealized gain on real estate securities, available for sale			Unrealized gain (loss) on net investment hedges		Foreign currency translation gain (loss)			Total
AOCI at December 31, 2019	$	612		$	893	$	(801	)	$	704
Other comprehensive income (loss)	(1,756		)	509		(455		)	(1,702		)
AOCI at March 31, 2020	$	(1,144	)	$	1,402	$	(1,256	)	$	(998	)



(in thousands)	Unrealized gain (loss) on real estate securities, available for sale			Unrealized gain on net investment hedges		Foreign currency translation loss			Total
AOCI at December 31, 2018	$	(32	)	$	268	$	(246	)	$	(10	)
Other comprehensive income (loss)	228			173		(77		)	324
AOCI at March 31, 2019	$	196		$	441	$	(323	)	$	314

Fair Value (Tables)

3 Months Ended

Mar. 31, 2020

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, 2020 and December 31, 2019 by level within the fair value hierarchy (dollars in thousands):



	March 31, 2020								December 31, 2019
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Investments in unconsolidated ventures - PE Investments	$	—	$	124	$	8,640	$	8,764	$	—	$	1,425	$	8,858	$	10,283
Real estate securities, available for sale	—		179,572				179,572		—		252,824		—		252,824
Mortgage loans held in securitization trusts, at fair value	—		—		1,822,991		1,822,991		—		—		1,872,970		1,872,970
Other assets - derivative assets	—		9		—		9		—		4,122		—		4,122
Liabilities:
Mortgage obligations issued by securitization trusts, at fair value	$	—	$	1,732,388	$	—	$	1,732,388	$	—	$	1,762,914	$	—	$	1,762,914
Other liabilities - derivative liabilities	—		33,344		—		33,344		—		19,133		—		19,133

Schedule of Changes in Level 3



	Three Months Ended March 31, 2020						Year Ended December 31, 2019
	Investments in unconsolidated ventures - PE Investments			Mortgage loans held in securitization trusts⁽¹⁾			Investments in unconsolidated ventures - PE Investments			Mortgage loans held in securitization trusts⁽¹⁾
Beginning balance	$	8,858		$	1,872,970		$	160,851		$	3,116,978
Contributions⁽²⁾/purchases	—			—			151			—
Distributions/paydowns	(887		)	(6,578		)	(18,407		)	(55,288		)
Deconsolidation of securitization trust⁽³⁾	—			—			—			(1,239,627		)
Equity in earnings	669			—			—			—
Sale of investments	—			—			(48,930		)	(39,848		)
Transfers out of Level 3				—			(84,807		)	—
Unrealized gain (loss) in earnings	—			(43,401		)	—			87,983
Realized gain in earnings				—			—			2,772
Ending balance	$	8,640		$	1,822,991		$	8,858		$	1,872,970

_________________________________________


(1)	For the three months ended March 31, 2020, unrealized loss of $43.4 million related to mortgage loans held in securitization trusts, at fair value was offset by unrealized gain of $23.9 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.


(3)	In July 2019, the Company sold its retained investments in the subordinate tranches of one securitization trust. As a result of the sale, the Company deconsolidated one of the securitization trusts. See Note 5, “Real Estate Securities, Available for Sale” for further information.

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, 2020 and December 31, 2019 (dollars in thousands):



	March 31, 2020							December 31, 2019
	Principal Amount			Carrying Value		Fair Value		Principal Amount			Carrying Value		Fair Value
Financial assets:⁽¹⁾
Loans and preferred equity held for investment, net	$	2,413,251	⁽²⁾	$	2,351,278	$	2,361,776	$	2,858,423	⁽²⁾	$	2,576,332	$	2,470,561
Financial liabilities:⁽¹⁾
Securitization bonds payable, net	$	840,423		$	833,671	$	840,423	$	840,423		$	833,153	$	840,423
Mortgage and other notes payable, net	1,156,777			1,152,851		1,156,461		1,260,267			1,256,112		1,260,675
Master repurchase facilities	1,260,419			1,260,419		1,260,419		1,099,233			1,099,233		1,099,233

_________________________________________


(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 $236.7 million and $276.6 million as of March 31, 2020 and December 31, 2019, respectively.

Fair Value Measurements, Nonrecurring

The following table summarizes assets carried at fair value on a nonrecurring basis as of March 31, 2020 and December 31, 2019 (dollars in thousands):



	March 31, 2020								December 31, 2019
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Loans and preferred equity held for investment, net	$	—	$	—	$	2,351,278	$	2,351,278	$	—	$	—	$	104,797	$	104,797
Loans held for sale	—		—		21,191		21,191		—		—		5,016		5,016
Real estate, net	—		—		344,726		344,726		—		—		448,690		448,690
Real estate assets held for sale	—		—		162,403		162,403		—		—		134,966		134,966
Investments in unconsolidated ventures	—		—		195,393		195,393		—		—		211,024		211,024
Deferred leasing costs and intangible assets, net	—		—		34,005		34,005		—		—		42,122		42,122

The following table summarizes the fair value write-downs to assets carried at nonrecurring fair values during the periods presented (dollars in thousands):



	Three Months Ended March 31,
	2020		2019
Provision for loan losses:
Loans and preferred equity held for investment, net	$	31,499	$	—
Loans held for sale	36,783		—
Total provision for loan losses	$	68,282	$	—

Derivatives (Tables)

3 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Assets at Fair Value

As of March 31, 2020 and December 31, 2019, fair value of derivative assets and derivative liabilities were as follows (dollars in thousands):



	March 31, 2020								December 31, 2019
	Designated Hedges		Non-Designated Hedges			Total			Designated Hedges			Non-Designated Hedges			Total
Derivative Assets
Foreign exchange contracts	$	—	$	—		$	—		$	—		$	4,122		$	4,122
Interest rate contracts	—		9			9			—			—			—
Included in other assets	$	—	$	9		$	9		$	—		$	4,122		$	4,122
Derivative Liabilities
Foreign exchange contracts	$	—	$	—		$	—		$	(2,128	)	$	(29	)	$	(2,157	)
Interest rate contracts	—		(33,344		)	(33,344		)	—			(16,976		)	(16,976		)
Included in accrued and other liabilities	$	—	$	(33,344	)	$	(33,344	)	$	(2,128	)	$	(17,005	)	$	(19,133	)

Schedule of Derivative Liabilities at Fair Value

As of March 31, 2020 and December 31, 2019, fair value of derivative assets and derivative liabilities were as follows (dollars in thousands):



	March 31, 2020								December 31, 2019
	Designated Hedges		Non-Designated Hedges			Total			Designated Hedges			Non-Designated Hedges			Total
Derivative Assets
Foreign exchange contracts	$	—	$	—		$	—		$	—		$	4,122		$	4,122
Interest rate contracts	—		9			9			—			—			—
Included in other assets	$	—	$	9		$	9		$	—		$	4,122		$	4,122
Derivative Liabilities
Foreign exchange contracts	$	—	$	—		$	—		$	(2,128	)	$	(29	)	$	(2,157	)
Interest rate contracts	—		(33,344		)	(33,344		)	—			(16,976		)	(16,976		)
Included in accrued and other liabilities	$	—	$	(33,344	)	$	(33,344	)	$	(2,128	)	$	(17,005	)	$	(19,133	)

Schedule of Derivative Instruments

The following table summarizes the Company’s interest rate contracts as of March 31, 2020:

Type of Derivatives

Notional Currency

Notional Amount (in thousands)

Range of Maturity Dates

Designated

Non-Designated

Interest Rate Swap

USD

—

366,730

April 2020 - August 2028



	Three Months Ended March 31,
	2020			2019
Other gain (loss), net
Non-designated foreign exchange contracts	$	(4,084	)	$	237
Non-designated interest rate contracts	(16,370		)	(4,083		)
	$	(20,454	)	$	(3,846	)
Other income
Non-designated foreign exchange contracts	$	8,738		$	—
	$	8,738		$	—
Accumulated other comprehensive income (loss)
Designated foreign exchange contracts	$	21,764		$	7,395
	$	21,764		$	7,395

Offsetting Derivative Assets



	Gross Amounts of Assets (Liabilities) Included on Consolidated Balance Sheets			Gross Amounts Not Offset on Consolidated Balance Sheets					Net Amounts of Assets (Liabilities)
				(Assets) Liabilities			Cash Collateral Pledged		Net Amounts of Assets (Liabilities)
March 31, 2020
Derivative Assets
Interest rate contracts	$	9		$	(9	)	$	—	$	—
	$	9		$	(9	)	$	—	$	—
Derivative Liabilities
Interest rate contracts	$	(33,344	)	$	9		$	33,335	$	—
	$	(33,344	)	$	9		$	33,335	$	—

December 31, 2019
Derivative Assets
Foreign exchange contracts	$	4,122		$	(2,157	)	$	—	$	1,965
	$	4,122		$	(2,157	)	$	—	$	1,965
Derivative Liabilities
Foreign exchange contracts	$	(2,157	)	$	2,157		$	—	$	—
Interest rate contracts	(16,976		)	—			16,976		—
	$	(19,133	)	$	2,157		$	16,976	$	—

Offsetting Derivative Liabilities



	Gross Amounts of Assets (Liabilities) Included on Consolidated Balance Sheets			Gross Amounts Not Offset on Consolidated Balance Sheets					Net Amounts of Assets (Liabilities)
				(Assets) Liabilities			Cash Collateral Pledged		Net Amounts of Assets (Liabilities)
March 31, 2020
Derivative Assets
Interest rate contracts	$	9		$	(9	)	$	—	$	—
	$	9		$	(9	)	$	—	$	—
Derivative Liabilities
Interest rate contracts	$	(33,344	)	$	9		$	33,335	$	—
	$	(33,344	)	$	9		$	33,335	$	—

December 31, 2019
Derivative Assets
Foreign exchange contracts	$	4,122		$	(2,157	)	$	—	$	1,965
	$	4,122		$	(2,157	)	$	—	$	1,965
Derivative Liabilities
Foreign exchange contracts	$	(2,157	)	$	2,157		$	—	$	—
Interest rate contracts	(16,976		)	—			16,976		—
	$	(19,133	)	$	2,157		$	16,976	$	—

Commitments and Contingencies Disclosure [Abstract]

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

+ References

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

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

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

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579245-113959

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41638-113959

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41678-113959

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41641-113959

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624171-113959

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

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

+ Details

Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2020

Summary of Lease Expense

The following table presents lease expense, included in property operating expense, for the three months ended March 31, 2020 and 2019 (dollars in thousands):



	Three Months Ended March 31,
	2020		2019
Operating lease expense:
Minimum lease expense	$	804	$	809
Variable lease expense	—		—
	$	804	$	809

Schedule of Future Minimum Rental Payments

The following table presents future minimum rental payments, excluding contingent rents, on noncancellable ground leases on real estate as of December 31, 2019 (dollars in thousands):



2020	$	3,232
2021	3,216
2022	3,244
2023	3,274
2024	2,383
2025 and thereafter	23,079
Total lease payments	38,428
Less: Present value discount	12,933
Operating lease liability (Note 8)	$	25,495

The following table presents future minimum rental payments, excluding contingent rents, on noncancellable ground leases on real estate as of March 31, 2020 (dollars in thousands):



Remainder of 2020	$	2,390
2021	3,171
2022	3,199
2023	3,229
2024	2,338
2025 and thereafter	21,725
Total lease payments	36,052
Less: Present value discount	11,757
Operating lease liability (Note 8)	$	24,295

Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Summary of Segment Reporting

The following tables present segment reporting for the three months ended March 31, 2020 and 2019 (dollars in thousands):



	Core
	Senior and MezzanineLoans and Preferred Equity			CRE Debt Securities			Net Leased Real Estate			Corporate⁽¹⁾			Total Core Portfolio			Legacy, Non-Strategic Portfolio			Total
Three months ended March 31, 2020
Net interest income (expense)	$	23,483		$	5,543		$	—		$	(1,876	)	$	27,150		$	706		$	27,856
Property and other income	24			72			30,531			5			30,632			31,290			61,922
Management fee expense	—			—			—			(6,516		)	(6,516		)	(1,430		)	(7,946		)
Property operating expense	(1		)	—			(3,683		)	—			(3,684		)	(18,847		)	(22,531		)
Transaction, investment and servicing expense	(398		)	—			(143		)	(1,673		)	(2,214		)	(920		)	(3,134		)
Interest expense on real estate	—			—			(8,461		)	—			(8,461		)	(4,617		)	(13,078		)
Depreciation and amortization	—			—			(11,153		)	—			(11,153		)	(6,823		)	(17,976		)
Provision for loan losses	(31,499		)	—			—			—			(31,499		)	(38,433		)	(69,932		)
Impairment of operating real estate	—			—			—			—			—			(4,126		)	(4,126		)
Administrative expense	(363		)	(535		)	(82		)	(3,151		)	(4,131		)	(2,907		)	(7,038		)
Unrealized gain (loss) on mortgage loans and obligations held in securitization trusts, net	—			(19,906		)	—			454			(19,452		)	—			(19,452		)
Other loss, net	—			(16,336		)	(4,084		)	(92		)	(20,512		)	350			(20,162		)
Income (loss) before equity in earnings of unconsolidated ventures and income taxes	(8,754		)	(31,162		)	2,925			(12,849		)	(49,840		)	(45,757		)	(95,597		)
Equity in earnings of unconsolidated ventures	14,074			—			—			—			14,074			3,093			17,167
Income tax benefit (expense)	(361		)	—			198			—			(163		)	(1,548		)	(1,711		)
Net income (loss)	$	4,959		$	(31,162	)	$	3,123		$	(12,849	)	$	(35,929	)	$	(44,212	)	$	(80,141	)

_________________________________________

(1)



	Core
	Senior and MezzanineLoans and Preferred Equity			CRE Debt Securities			Net Leased Real Estate			Corporate⁽¹⁾			Total Core Portfolio			Legacy, Non-Strategic Portfolio			Total
Three months ended March 31, 2019
Net interest income (expense)	$	15,882		$	5,312		$	—		$	(2,858	)	$	18,336		$	3,622		$	21,958
Property and other income	93			67			29,904			—			30,064			33,247			63,311
Management fee expense	—			—			—			(9,086		)	(9,086		)	(2,272		)	(11,358		)
Property operating expense	—			—			(8,946		)	—			(8,946		)	(19,234		)	(28,180		)
Transaction, investment and servicing expense	(276		)	—			(45		)	267			(54		)	(475		)	(529		)
Interest expense on real estate	—			—			(8,570		)	—			(8,570		)	(5,037		)	(13,607		)
Depreciation and amortization	—			—			(13,084		)	—			(13,084		)	(14,578		)	(27,662		)
Administrative expense	(289		)	(387		)	(57		)	(2,905		)	(3,638		)	(3,015		)	(6,653		)
Unrealized gain on mortgage loans and obligations held in securitization trusts, net	—			666			—			363			1,029			—			1,029
Realized gain on mortgage loans and obligations held in securitization trusts, net	—			48			—			—			48			—			48
Other gain (loss), net	—			(4,070		)	235			8			(3,827		)	(1,252		)	(5,079		)
Income (loss) before equity in earnings of unconsolidated ventures and income taxes	15,410			1,636			(563		)	(14,211		)	2,272			(8,994		)	(6,722		)
Equity in earnings of unconsolidated ventures	18,368			—			—			—			18,368			2,942			21,310
Income tax benefit (expense)	(12		)	—			2,382			(382		)	1,988			(1,619		)	369
Net income (loss)	$	33,766		$	1,636		$	1,819		$	(14,593	)	$	22,628		$	(7,671	)	$	14,957

_________________________________________

(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, 2019, $0.4 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

Summary of Total Assets by Segment

The following table presents total assets by segment as of March 31, 2020 and December 31, 2019 (dollars in thousands):



	Core
Total Assets	Senior and Mezzanine Loans and Preferred Equity⁽¹⁾		CRE Debt Securities		Net Leased Real Estate		Corporate⁽²⁾		Total Core Portfolio		Legacy, Non-Strategic Portfolio⁽³⁾		Total
March 31, 2020	$	2,361,830	$	2,073,016	$	1,119,067	$	899,259	$	6,453,172	$	740,416	$	7,193,588
December 31, 2019	2,464,963		2,226,448		1,181,609		496,714		6,369,734		1,044,572		7,414,306

_________________________________________


(1)	Includes investments in unconsolidated ventures totaling $577.2 million and $585.0 million as of March 31, 2020 and December 31, 2019, respectively.


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

(3)

Includes PE Investments totaling $8.8 million and $10.3 million as of March 31, 2020 and December 31, 2019, respectively.

Schedule of Revenue by Geographic Areas

Geography information on total income and long lived assets are presented as follows (dollars in thousands):



	Three Months Ended March 31,
	2020		2019
Total income by geography:
United States	$	124,953	$	148,790
Europe	20,795		12,681
Other	—		35
Total⁽¹⁾	$	145,748	$	161,506

Schedule of Long-lived Assets by Geographic Areas



	March 31, 2020		December 31, 2019
Long-lived assets by geography:
United States	$	1,062,789	$	1,282,189
Europe	262,706		315,369
Total⁽²⁾	$	1,325,495	$	1,597,558

_________________________________________


(1)	Includes interest income, interest income on mortgage loans held in securitization trusts, property and other income and equity in earnings of unconsolidated ventures.

(2)

Long-lived assets are comprised of real estate and real estate related intangible assets, and excludes financial instruments and assets held for sale.

Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2020

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, 2020 and 2019 consist of the following (dollars in thousands, except per share data):



	Three Months Ended March 31,
	2020			2019
Net income (loss)	$	(80,141	)	$	14,957
Net (income) loss attributable to noncontrolling interests:
Investment Entities	(523		)	298
Operating Partnership	1,892			(347		)
Net income (loss) attributable to Colony Credit Real Estate, Inc. common stockholders	$	(78,772	)	$	14,908

Numerator:
Net income allocated to participating securities (nonvested shares)	$	(322	)	$	(466	)
Net income (loss) attributable to common stockholders	$	(79,094	)	$	14,442

Denominator:
Weighted average shares outstanding⁽¹⁾⁽²⁾	128,487			127,943

Net income (loss) per common share - basic and diluted⁽²⁾	$	(0.62	)	$	0.11

_________________________________________


(1)	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 CLNY Investment Entities, the Company’s predecessor for accounting purposes. On February 1, 2019, the Class B-3 common stock automatically converted to Class A common stock on a one-for-one basis.

(2)

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)	Mar. 31, 2020 employee $ / shares	Dec. 31, 2019 $ / shares	Jan. 31, 2018 $ / shares
Schedule of Investments [Line Items]
Entity number of employees \| employee	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Credit RE Operating Company, LLC
Schedule of Investments [Line Items]
Ownership percentage by parent (in percentage)	97.70%
Ownership percentage by noncontrolling owners (in percentage)	2.30%
Class A
Schedule of Investments [Line Items]
Common stock, par value (in dollars per share)			$ 0.01

Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands		3 Months Ended
	Jan. 31, 2018	Mar. 31, 2020 USD ($) loan variable_interest_entity	Mar. 31, 2019 USD ($)	Dec. 31, 2019 USD ($)
Variable Interest Entity [Line Items]
Conversion of stock, conversion ratio	1
Income tax benefit (expense)		$ (1,711)	$ 369
Provision for loan losses		69,932	$ 0
Other liabilities		145,956		$ 140,424
Operating right-of-use asset		24,255		25,480
Operating lease liability		$ 24,295		25,495
Primary beneficiary
Variable Interest Entity [Line Items]
Number of investing VIEs \| variable_interest_entity		2
Other liabilities		$ 100,764		$ 124,969
Third Party Joint Venture Partners \| Minimum \| Not primary beneficiary
Variable Interest Entity [Line Items]
Ownership percentage by noncontrolling owners (in percentage)		3.50%
Third Party Joint Venture Partners \| Maximum \| Not primary beneficiary
Variable Interest Entity [Line Items]
Ownership percentage by noncontrolling owners (in percentage)		20.00%
Legacy, non-strategic portfolio
Variable Interest Entity [Line Items]
Loans held-for-sale, number of loans \| loan		7
CECL reserve on Loans and preferred equity held for investment, net
Variable Interest Entity [Line Items]
Financing receivable, allowance for credit loss, writeoff		$ 67,600
Other liabilities
Variable Interest Entity [Line Items]
Financing receivable, allowance for credit loss, writeoff		2,300
Hospitality loan \| Accounting Standards Update 2016-13
Variable Interest Entity [Line Items]
Provision for loan losses		39,100
PD/LGD model \| Accounting Standards Update 2016-13
Variable Interest Entity [Line Items]
Provision for loan losses		29,000
Sale of loans \| Accounting Standards Update 2016-13
Variable Interest Entity [Line Items]
Provision for loan losses		$ 1,800

Summary of Significant Accounting Policies - Classification, Carrying Value and Maximum Exposure of VIEs (Details) - Unconsolidated VIEs $ in Thousands	Mar. 31, 2020 USD ($)
Variable Interest Entity [Line Items]
Carrying Value	$ 696,708
Maximum Exposure to Loss	787,397
Real estate securities, available for sale
Variable Interest Entity [Line Items]
Carrying Value	179,572
Maximum Exposure to Loss	238,080
Investments in unconsolidated ventures
Variable Interest Entity [Line Items]
Carrying Value	499,549
Maximum Exposure to Loss	531,730
Loans and preferred equity held for investment, net
Variable Interest Entity [Line Items]
Carrying Value	17,587
Maximum Exposure to Loss	$ 17,587

Summary of Significant Accounting Policies - Operating Real Estate Estimated Useful Lives (Details)	3 Months Ended
	Mar. 31, 2020
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)	48 years
Land improvements \| Minimum
Property, Plant and Equipment [Line Items]
Useful life (in years)	1 year
Land improvements \| Maximum
Property, Plant and Equipment [Line Items]
Useful life (in years)	15 years
Furniture, fixtures and equipment \| Minimum
Property, Plant and Equipment [Line Items]
Useful life (in years)	2 years
Furniture, fixtures and equipment \| Maximum
Property, Plant and Equipment [Line Items]
Useful life (in years)	8 years

Summary of Significant Accounting Policies - Schedule of adoption of ASU 2016-13 (Details) - Accounting Standards Update 2016-13 - USD ($) $ in Thousands	Mar. 31, 2020	Jan. 01, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Impact of ASU 2016-13 adoption on Accumulated deficit	$ 23,186	$ (23,186)
CECL reserve on Loans and preferred equity held for investment, net
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Impact of ASU 2016-13 adoption on Accumulated deficit	21,093
CECL reserve on Accrued and other liabilities
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total Impact of ASU 2016-13 adoption on Accumulated deficit	$ 2,093

Loans and Preferred Equity Held for Investment, net and Loans Held for Sale - Summary of Loans Held for Investment, Net (Details)
$ in Thousands

3 Months Ended

Mar. 31, 2020

USD ($)

loan

Dec. 31, 2019

USD ($)

Mar. 31, 2020

USD ($)

loan

Mar. 31, 2019

USD ($)

Dec. 31, 2018

USD ($)

$ 2,413,251

$ 2,858,423

$ 2,413,251

Allowance for loan losses

2,403,472

(52,194)

(272,624)

(52,194)

$ (77,632)

$ (109,328)

Total

^[1]

$ 2,351,278

2,576,332

2,351,278

Troubled debt restructuring, number of contracts | loan

$ 69,932

$ 0

Fixed rate

$ 256,439

351,351

$ 256,439

Variable rate

Commercial Mortgage, Including PCI Loans

2,156,812

2,507,072

2,156,812

Mezzanine loans | Fixed rate

2,413,251

2,858,423

2,413,251

Total

2,403,472

2,848,956

2,403,472

$ 126,807

$ 223,395

126,807

12.70%

12.80%

Mezzanine loans | Variable rate

4 years 9 months 18 days

4 years 2 months 12 days

$ 14,959

$ 38,110

14,959

10.70%

11.40%

Preferred equity interests | Fixed rate

2 years 3 months 18 days

2 years

$ 116,901

$ 115,384

116,901

12.50%

6 years 7 months 6 days

6 years 10 months 24 days

Other Loans | Fixed rate

$ 12,731

$ 12,572

12,731

15.00%

Senior loans | Variable rate

4 years 2 months 12 days

4 years 4 months 24 days

$ 1,135,358

$ 1,462,467

1,135,358

5.60%

6.00%

Securitized loans | Variable rate

3 years 10 months 24 days

3 years 9 months 18 days

$ 1,006,495

1,006,495

5.10%

5.20%

Loans and preferred equity held for investment | Fixed rate

4 years

4 years 2 months 12 days

Loans and preferred equity held for investment | Variable rate

$ 255,470

$ 350,264

255,470

Loans and preferred equity held for investment | Commercial Mortgage, Including PCI Loans

2,148,002

2,498,692

2,148,002

Loans and preferred equity held for investment | Mezzanine loans | Fixed rate

2,403,472

2,848,956

2,403,472

Loans and preferred equity held for investment | Mezzanine loans | Variable rate

125,993

222,503

125,993

Loans and preferred equity held for investment | Preferred equity interests | Fixed rate

15,079

38,258

15,079

Loans and preferred equity held for investment | Other Loans | Fixed rate

116,856

115,313

116,856

Loans and preferred equity held for investment | Senior loans | Variable rate

12,621

12,448

12,621

Loans and preferred equity held for investment | Securitized loans | Variable rate

1,130,218

1,457,738

1,130,218

$ 1,002,705

$ 1,002,696

$ 1,002,705

[1]	Net of $52.2 million and $272.6 million of allowance for loan losses at March 31, 2020 and December 31, 2019, respectively. See Note 3, “Loans and Preferred Equity Held for Investments, net and Loans Held for Sale” for further details.

Loans and Preferred Equity Held for Investment, net and Loans Held for Sale - Activity in Loans Held for Investment, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward]
Balance at January 1, 2020			$ 2,576,332
Acquisitions/originations/additional funding	$ 37,452
Loan maturities/principal repayments	(176,021)
Transfer to loans held for sale	(16,625)
Discount accretion/premium amortization	2,215
Capitalized interest	3,171
Provision for loan losses	(69,686)
Effect of CECL adoption	(21,093)
Charge-off	15,533
Balance at end of period	2,351,278
Unfunded commitments	200
Provision for loan losses	69,932	$ 0
PD/LGD model
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward]
Provision for loan losses	28,800
NY hospitality loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward]
Provision for loan losses	36,800
Midwest hospitality
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward]
Provision for loan losses	$ 2,300

Loans and Preferred Equity Held for Investment, net and Loans Held for Sale - Narrative (Details)		1 Months Ended	3 Months Ended			12 Months Ended
	Mar. 31, 2020 USD ($) borrower loan	May 08, 2020 USD ($)	Mar. 31, 2020 USD ($) borrower loan investment	Mar. 31, 2019 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2019 USD ($) property loan investment	Dec. 31, 2018 USD ($)	Apr. 22, 2020 loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maturity period of debt instruments depending upon the asset type (in years)	4 years 1 month 6 days
Interest receivable	$ 8,800,000		$ 8,800,000			$ 9,800,000
Provision for loan losses			69,932,000	$ 0
Provision for Loan and Lease Losses			$ 69,932,000	0
Troubled debt restructuring, number of contracts \| loan	0		0
Allowance for loan losses	$ 52,194,000		$ 52,194,000	77,632,000		272,624,000	$ 109,328,000
Carrying value of loans						409,700,000
Assets-held-for-sale, including discontinued operations	$ 0		$ 0			$ 0
Real estate debt investments with contractual payments past due	5		5			5
Number of borrowers, contractual payments past due \| borrower	2		2
Number of CRE debt investments contributed to more than 10% of interest income \| investment			0
Percent of interest income contributed by investment (in percentage)			10.00%
Future funding commitments	$ 236,700,000		$ 236,700,000			$ 276,600,000
NY hospitality loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans, non-accrual status \| loan	4		4
Commercial mortgage, regional mall loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provision for loan losses						$ 26,700,000	$ 8,800,000
Number of loans with potential loss \| loan						3
Number of properties collateralized \| property						2
Commercial mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying value of loans						$ 377,421,000
Future funding commitments	$ 236,700,000		$ 236,700,000
Hospitality
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provision for loan losses			2,300,000
NY hospitality loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provision for loan losses				$ 154,300,000	$ 53,800,000
Northeast Regional Mall B \| Commercial mortgage, regional mall loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provision for loan losses						10,500,000
Proceeds from sale of loans receivable			9,200,000
Gain (loss) on sales of loans, net			1,800,000
West Regional Mall \| Commercial mortgage, regional mall loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provision for loan losses						$ 18,500,000
Number of loans with potential loss \| loan						2
Number of properties collateralized \| property						1
South Regional Mall A \| Commercial mortgage, regional mall loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Proceeds from sale of loans receivable			22,000,000.0
Gain (loss) on sales of loans, net			(1,600,000)
South Regional Mall B \| Commercial mortgage, regional mall loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Proceeds from sale of loans receivable			13,500,000
Gain (loss) on sales of loans, net			$ 8,700,000
Legacy, non-strategic portfolio
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-sale, number of loans \| loan			7
Legacy, non-strategic portfolio \| NY hospitality loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans, non-accrual status \| loan	4		4
Non-Core \| Legacy, non-strategic portfolio
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provision for Loan and Lease Losses			$ 38,433,000
Number of loans, non-accrual status \| loan	1		1
Impaired financing receivable, recorded impairment						$ 10,600,000
Core
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provision for Loan and Lease Losses			$ 31,499,000
Core \| Midwest hospitality \| Hospitality
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans, non-accrual status \| loan	1		1
COVID-19
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provision for loan losses			$ 36,800,000
Subsequent event \| Northeast Regional Mall B \| Commercial mortgage, regional mall loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gain (loss) on sales of loans, net		$ 6,800,000
Subsequent event \| West Regional Mall \| Commercial mortgage, regional mall loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Proceeds from sale of loans receivable		$ 23,500,000
Subsequent event \| Legacy, non-strategic portfolio \| NY hospitality loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans, non-accrual status \| loan								4

Loans and Preferred Equity Held for Investment, net and Loans Held for Sale - Nonaccrual and Past Due Loans (Details)
$ in Thousands

Mar. 31, 2020

USD ($)

loan

Dec. 31, 2019

USD ($)

Loans and preferred equity held for investment, net

^[1]

$ 2,351,278

$ 2,576,332

Commercial mortgage

Loans and preferred equity held for investment, net

2,403,472

2,848,956

Commercial mortgage | Current or Less Than 30 Days Past Due

Loans and preferred equity held for investment, net

2,373,626

2,558,505

Commercial mortgage | 30-59 Days Past Due

Loans and preferred equity held for investment, net

32,322

Commercial mortgage | 60-89 Days Past Due

Loans and preferred equity held for investment, net

Commercial mortgage | 90 Days or More Past Due / Nonaccrual

Loans and preferred equity held for investment, net

$ 29,846

$ 258,129

NY hospitality loans

Number of loans, non-accrual status | loan

First mortgage loans | Commercial mortgage, hospitality loan | 90 Days or More Past Due / Nonaccrual

Loans and preferred equity held for investment, net

$ 258,100

Core | Midwest hospitality | Hospitality

Number of loans, non-accrual status | loan

[1]	Net of $52.2 million and $272.6 million of allowance for loan losses at March 31, 2020 and December 31, 2019, respectively. See Note 3, “Loans and Preferred Equity Held for Investments, net and Loans Held for Sale” for further details.

Loans and Preferred Equity Held for Investment, net and Loans Held for Sale - Impaired Loans (Details)
$ in Thousands

3 Months Ended

Mar. 31, 2020

USD ($)

loan

Mar. 31, 2019

USD ($)

Dec. 31, 2019

USD ($)

Financing Receivable, Allowance for Credit Loss [Line Items]

Gross carrying Value with allowance for loan losses

$ 409,700

Loans and preferred equity held for investment, net

^[1]

$ 2,351,278

2,576,332

Troubled debt restructuring, number of contracts | loan

$ 69,932

$ 0

Commercial mortgage

Financing Receivable, Allowance for Credit Loss [Line Items]

Unpaid principal balance

408,058

Gross carrying Value with allowance for loan losses

377,421

Gross carrying value without allowance for loan losses

32,322

Gross carrying value total

409,743

Allowance for loan losses

272,624

Loans and preferred equity held for investment, net

$ 2,403,472

2,848,956

Average carrying value before allowance for loan losses

390,376

Interest income

$ 1,476

90 Days or More Past Due / Nonaccrual | Commercial mortgage

Financing Receivable, Allowance for Credit Loss [Line Items]

Loans and preferred equity held for investment, net

29,846

$ 258,129

First mortgage loans | 90 Days or More Past Due / Nonaccrual | Commercial mortgage, hospitality loan

Financing Receivable, Allowance for Credit Loss [Line Items]

Loans and preferred equity held for investment, net

258,100

Hotel | Hotel, New York | 90 Days or More Past Due / Nonaccrual | Commercial mortgage, hospitality loan

Financing Receivable, Allowance for Credit Loss [Line Items]

Loans and preferred equity held for investment, net

$ 257,200

Hotel | Hotel, New York | First mortgage loans | 90 Days or More Past Due / Nonaccrual | Commercial mortgage, hospitality loan

Financing Receivable, Allowance for Credit Loss [Line Items]

Number of loans, non-accrual status | loan

[1]	Net of $52.2 million and $272.6 million of allowance for loan losses at March 31, 2020 and December 31, 2019, respectively. See Note 3, “Loans and Preferred Equity Held for Investments, net and Loans Held for Sale” for further details.

Loans and Preferred Equity Held for Investment, net and Loans Held for Sale - Changes in Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Allowance for Loan and Lease Losses [Roll Forward]
Allowance for loan losses at beginning of period	$ 272,624	$ 109,328
Effect of CECL adoption	21,093	0
Provision for loan losses	69,686	0
Charge-off	(15,533)	(31,696)
Transfer to loans held for sale	(295,676)	0
Allowance for loan losses at end of period	$ 52,194	$ 77,632

Loans and Preferred Equity Held for Investment, net and Loans Held for Sale - Schedule of Assets Held for Sale (Details) - USD ($)
$ in Thousands

Mar. 31, 2020

Dec. 31, 2019

Long Lived Assets Held-for-sale [Line Items]

Loans and preferred equity held for investment, net

^[1]

$ 2,351,278

$ 2,576,332

Total assets held for sale

270,680

189,470

Held-for-sale

Long Lived Assets Held-for-sale [Line Items]

Loans and preferred equity held for investment, net

21,191

5,016

Total assets held for sale

$ 21,191

$ 5,016

[1]	Net of $52.2 million and $272.6 million of allowance for loan losses at March 31, 2020 and December 31, 2019, respectively. See Note 3, “Loans and Preferred Equity Held for Investments, net and Loans Held for Sale” for further details.

Loans and Preferred Equity Held for Investment, net and Loans Held for Sale - Summary of Loans and Preferred Equity Held for Investment by Year of Origination and Credit Quality Risk Ranking (Details) $ in Thousands	Mar. 31, 2020 USD ($)
Financing Receivable, Credit Quality Indicator [Line Items]
2020	$ 0
2019	1,258,991
2018	1,064,400
2017	45,701
2016	0
Prior	34,380
Total	2,403,472
Senior loans
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0
2019	1,176,696
2018	895,758
2017	33,581
2016	0
Prior	29,846
Total	2,135,881
Senior loans \| Average risk
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0
2019	377,975
2018	292,224
2017	33,581
2016	0
Prior	0
Total	703,780
Senior loans \| High risk/delinquent/potential for loss
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0
2019	798,721
2018	603,534
2017	0
2016	0
Prior	0
Total	1,402,255
Senior loans \| Impaired/defaulted/loss likely
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0
2019	0
2018	0
2017	0
2016	0
Prior	29,846
Total	29,846
Mezzanine loans
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0
2019	69,674
2018	51,785
2017	12,120
2016	0
Prior	4,534
Total	138,113
Mezzanine loans \| Average risk
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0
2019	0
2018	0
2017	0
2016	0
Prior	0
Total	0
Mezzanine loans \| High risk/delinquent/potential for loss
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0
2019	69,674
2018	51,785
2017	12,120
2016	0
Prior	4,534
Total	138,113
Preferred equity interests
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0
2019	12,621
2018	116,857
2017	0
2016	0
Prior	0
Total	129,478
Preferred equity interests \| High risk/delinquent/potential for loss
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0
2019	12,621
2018	116,857
2017	0
2016	0
Prior	0
Total	$ 129,478

Investments in Unconsolidated Ventures - Investments in Unconsolidated Ventures (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Equity Method Investments and Joint Ventures [Abstract]
Equity method investments	$ 577,230	$ 585,022
Investments under fair value option	8,764	10,283
Investments in Unconsolidated Ventures	$ 585,994	$ 595,305

Investments in Unconsolidated Ventures - Summary of Equity Method Investments (Details) $ in Thousands	Mar. 31, 2020 USD ($) investment	Dec. 31, 2019 USD ($)
Schedule of Equity Method Investments [Line Items]
Equity method investments	$ 577,230	$ 585,022
ADC investments
Schedule of Equity Method Investments [Line Items]
Equity method investments	$ 59,047	59,576
Number of investments \| investment	3
Other investment ventures
Schedule of Equity Method Investments [Line Items]
Equity method investments	$ 518,183	$ 525,446
Number of investments \| investment	9
Each investment immaterial balance (less than)	$ 171,500

Investments in Unconsolidated Ventures - Narrative (Details) $ in Millions	2 Months Ended	3 Months Ended
	Feb. 27, 2020 USD ($)	Mar. 31, 2020 USD ($) loan
Minimum
Schedule of Equity Method Investments [Line Items]
Investments fair value option, ownership percentage (in percentage)		0.10%
Maximum
Schedule of Equity Method Investments [Line Items]
Investments fair value option, ownership percentage (in percentage)		16.10%
Investments in unconsolidated ventures - PE Investments
Schedule of Equity Method Investments [Line Items]
Proceeds related to sale of PE Investments		$ 1.8
Loans and equity partnership interest, legacy, non-strategic portfolio
Schedule of Equity Method Investments [Line Items]
Investments in unconsolidated ventures		$ 16.1
Number of impaired loans \| loan		2
Equity participation interest in joint venture, core portfolio
Schedule of Equity Method Investments [Line Items]
Investments in unconsolidated ventures		$ 17.6
Commercial mortgage, regional mall loans \| Southeast regional mall
Schedule of Equity Method Investments [Line Items]
Investments in unconsolidated ventures		$ 14.7
Number of impaired loans \| loan		1
Interest in joint venture (in percentage)		50.00%
Proceeds from sale of loans held-for-sale	$ 13.4
Gains from sale of properties	$ 1.6
Legacy, non-strategic portfolio
Schedule of Equity Method Investments [Line Items]
Investments in and advance to affiliates, subsidiaries, associates, and joint ventures, reclassification to held-for-sale		$ 11.5

Real Estate Securities, Available for Sale - Investments in CRE Securities (Details) $ in Thousands	Mar. 31, 2020 USD ($) security	Dec. 31, 2019 USD ($) security
Debt Securities, Available-for-sale [Line Items]
Real estate securities, available for sale	$ 179,572	$ 252,824
Real estate securities, available for sale
Debt Securities, Available-for-sale [Line Items]
Count \| security	43	43,000
Principal amount	$ 292,284	$ 292,284
Total Discount	(54,204)	(55,981)
Amortized Cost	238,080	236,303
Cumulative unrealized gain on investments	0	17,084
Cumulative unrealized (loss) on investments	(58,508)	(563)
Real estate securities, available for sale	$ 179,572	$ 252,824
Weighted average coupon (in percentage)	3.19%	3.19%
Weighted average unleveraged current yield (in percentage)	7.12%	7.12%
Collateral pledged
Debt Securities, Available-for-sale [Line Items]
Carrying value of CMBS Credit Facilities serving as collateral	$ 178,300

Real Estate Securities, Available for Sale - Narrative (Details) $ in Thousands		1 Months Ended	3 Months Ended
	Mar. 31, 2020 USD ($) loan security securitization_trust	Jul. 31, 2019 USD ($) securitization_trust	Mar. 31, 2020 USD ($) loan security securitization_trust	Mar. 31, 2019 USD ($)	Dec. 31, 2019 USD ($)
Debt Securities, Available-for-sale [Line Items]
Unrealized gains (losses) in OCI			$ (75,000)	$ 9,800
Number of securities in an unrealized loss position, less than 12 months \| security	43		43
Securities in an unrealized loss position, less than 12 months	$ 179,600		$ 179,600
Unrealized loss on securities in an unrealized loss position, less than 12 months	58,500		58,500
Interest receivable	$ 700		$ 700		$ 700
Number of securitization trusts held \| securitization_trust	2		2
Gross assets	$ 7,193,588		$ 7,193,588		7,414,306
Gross liabilities	$ 5,220,087		5,220,087		5,212,956
Real estate securities, available for sale
Debt Securities, Available-for-sale [Line Items]
Weighted average contractual maturity	30 years 9 months 18 days
Expected maturity	6 years 2 months 12 days
Primary beneficiary
Debt Securities, Available-for-sale [Line Items]
Number of securitization trusts sold \| securitization_trust		1
Proceeds from sale of mortgage loans held in securitization trusts		$ 33,400
Gross assets	$ 1,830,072	1,200,000	1,830,072		1,879,990
Gross liabilities	1,738,635	$ 1,200,000	1,738,635		1,769,181
Primary beneficiary
Debt Securities, Available-for-sale [Line Items]
Gross assets	3,305,729		3,305,729		3,502,341
Gross liabilities	3,012,677		3,012,677		3,117,364
Mortgage loans held in trust, unpaid principal balance	1,800,000		1,800,000		1,800,000
Mortgage obligations held in trust, unpaid principal balance	$ 1,600,000		$ 1,600,000		1,600,000
Number of underlying mortgage loans \| loan	115		115
Weighted average coupon (in percentage)	4.50%		4.50%
Weighted average loan to value ratio (in percentage)	56.70%		56.70%
Difference between held and issued mortgage loans in securitization trusts	$ 90,600		$ 90,600		$ 110,100

Real Estate Securities, Available for Sale - Assets and Liabilities Related to Securitized Trust (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Jul. 31, 2019
Assets
Mortgage loans held in securitization trusts, at fair value	$ 1,822,991	$ 1,872,970
Receivables, net	41,569	46,456
Total assets	7,193,588	7,414,306
Liabilities
Mortgage obligations issued by securitization trusts, at fair value	1,732,388	1,762,914
Accrued and other liabilities	145,956	140,424
Total liabilities	5,220,087	5,212,956
Primary beneficiary
Assets
Mortgage loans held in securitization trusts, at fair value	1,822,991	1,872,970
Receivables, net	7,081	7,020
Total assets	1,830,072	1,879,990	$ 1,200,000
Liabilities
Mortgage obligations issued by securitization trusts, at fair value	1,732,388	1,762,914
Accrued and other liabilities	6,247	6,267
Total liabilities	$ 1,738,635	$ 1,769,181	$ 1,200,000

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, 2020	Mar. 31, 2019
Variable Interest Entity [Line Items]
Interest expense	$ (20,744)	$ (19,292)
Interest income on mortgage loans held in securitization trusts	20,555	38,476
Interest expense on mortgage obligations issued by securitization trusts	(18,059)	(35,635)
Administrative expense	(7,038)	(6,653)
Unrealized gain (loss) on mortgage loans and obligations held in securitization trusts, net	(19,452)	1,029
Realized gain on mortgage loans and obligations held in securitization trusts, net	0	48
Net income (loss) attributable to common stockholders	(79,094)	14,442
Primary beneficiary
Variable Interest Entity [Line Items]
Interest expense	(185)	(263)
Interest income on mortgage loans held in securitization trusts	20,555	38,476
Interest expense on mortgage obligations issued by securitization trusts	(18,059)	(35,635)
Net interest income	2,311	2,578
Administrative expense	(515)	(359)
Unrealized gain (loss) on mortgage loans and obligations held in securitization trusts, net	(19,452)	1,029
Realized gain on mortgage loans and obligations held in securitization trusts, net	0	48
Net income (loss) attributable to common stockholders	$ (17,656)	$ 3,296

Real Estate, net and Real Estate Held for Sale - Real Estate Portfolios (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($) property	Dec. 31, 2019 USD ($)
Real Estate [Line Items]
Net lease portfolio, net	$ 1,226,988	$ 1,484,796
Foreclosed properties included in real estate	3,100	50,700
Net lease portfolio, net
Real Estate [Line Items]
Land and improvements	200,742	209,693
Buildings, building leaseholds, and improvements	860,681	899,889
Tenant improvements	23,543	25,077
Construction-in-progress	1,026	415
Subtotal	1,085,992	1,135,074
Less: Accumulated depreciation	(68,977)	(63,995)
Less: Impairment	(23,911)	(23,911)
Net lease portfolio, net	993,104	1,047,168
Other portfolio, net
Real Estate [Line Items]
Land and improvements	60,994	91,997
Buildings, building leaseholds, and improvements	346,439	536,046
Tenant improvements	24,708	38,230
Furniture, fixtures and equipment	179	3,183
Construction-in-progress	4,665	6,325
Subtotal	436,985	675,781
Less: Accumulated depreciation	(30,685)	(46,079)
Less: Impairment	(172,416)	(192,074)
Net lease portfolio, net	$ 233,884	437,628
Property Concentration Risk \| Revenue
Real Estate [Line Items]
Concentration risk, number of properties \| property	0
Concentration risk (in percentage)	10.00%
Held-for-sale
Real Estate [Line Items]
Foreclosed properties included in real estate	$ 92,300	$ 57,900

Real Estate, net and Real Estate Held for Sale - Depreciation Expense (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Real Estate [Abstract]
Depreciation expense on real estate	$ 12.0	$ 19.9

Real Estate, net and Real Estate Held for Sale - Property Operating Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Lease revenues
Minimum lease revenue	$ 41,958	$ 44,528
Variable lease revenue	6,649	6,656
Total lease revenues	48,607	51,184
Hotel operating income	3,501	11,334
Property operating income	52,108	62,518
Net amortization income related to above and below-market leases	$ 800	$ 1,200

Real Estate, net and Real Estate Held for Sale - Minimum Future Rents (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract]
2020	$ 87,398	$ 120,967
2021	106,896	113,170
2022	99,485	102,314
2023	84,071	85,367
2024	73,324	71,714
2025 and thereafter	466,713	448,812
Total	917,887	$ 942,344
Minimum future rents for real estate, held for sale through 2029	$ 40,900

Real Estate, net and Real Estate Held for Sale - Commitments and Contractual Obligations (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Real Estate [Abstract]
Ground rent expense	$ 0.8	$ 0.8

Real Estate, net and Real Estate Held for Sale - Real Estate Asset Acquisitions (Details) $ in Thousands	1 Months Ended		3 Months Ended	12 Months Ended
	Jun. 30, 2019 USD ($) building	Jan. 31, 2019 USD ($) building	Mar. 31, 2020	Dec. 31, 2019 USD ($)
Real Estate [Line Items]
Purchase Price				$ 127,356
Land and Improvements				47,439
Building and Improvements				73,011
Furniture, Fixtures and Equipment				0
Lease intangible assets				6,135
Other Assets				4,761
Other Liabilities				$ (3,990)
Retail - Massachusetts
Real Estate [Line Items]
Number of Buildings \| building	3
Purchase Price	$ 21,919
Land and Improvements	9,294
Building and Improvements	6,598
Furniture, Fixtures and Equipment	0
Lease intangible assets	5,256
Other Assets	1,538
Other Liabilities	$ (767)
Industrial - Various in U.S.
Real Estate [Line Items]
Number of Buildings \| building		28
Purchase Price		$ 105,437
Land and Improvements		38,145
Building and Improvements		66,413
Furniture, Fixtures and Equipment		0
Lease intangible assets		879
Other Assets		3,223
Other Liabilities		$ (3,223)
Building (fee interest) \| Minimum
Real Estate [Line Items]
Useful lives of intangibles acquired (in years)			4 years
Building (fee interest) \| Maximum
Real Estate [Line Items]
Useful lives of intangibles acquired (in years)			33 years
Site improvements \| Minimum
Real Estate [Line Items]
Useful lives of intangibles acquired (in years)			1 year
Site improvements \| Maximum
Real Estate [Line Items]
Useful lives of intangibles acquired (in years)			20 years
Tenant improvements \| Minimum
Real Estate [Line Items]
Useful lives of intangibles acquired (in years)			1 year
Tenant improvements \| Maximum
Real Estate [Line Items]
Useful lives of intangibles acquired (in years)			27 years
Furniture, fixtures and equipment \| Minimum
Real Estate [Line Items]
Useful lives of intangibles acquired (in years)			5 years
Furniture, fixtures and equipment \| Maximum
Real Estate [Line Items]
Useful lives of intangibles acquired (in years)			7 years
In-place lease values \| Minimum
Real Estate [Line Items]
Useful lives of intangibles acquired (in years)			1 year
In-place lease values \| Maximum
Real Estate [Line Items]
Useful lives of intangibles acquired (in years)			27 years

Real Estate, net and Real Estate Held for Sale - Summary of Assets And Liabilities Held for Sale (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Assets
Real estate, net	$ 229,252	$ 178,564
Deferred leasing costs and intangible assets, net	8,722	5,890
Total assets held for sale	237,974	184,454
Liabilities
Intangible liabilities, net	10,842	294
Total liabilities related to assets held for sale	$ 10,842	$ 294

Real Estate, net and Real Estate Held for Sale - Real Estate Sales (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($) property	Mar. 31, 2019 USD ($)
Real Estate [Line Items]
Number of real estate properties	6
Gain (loss) on sale of properties \| $	$ (3,600)
Impairment of operating real estate \| $	4,126	$ 0
Multi-tenant office portfolio in bothell, washington
Real Estate [Line Items]
Proceeds from sale of real estate \| $	$ 172,600
Company's Legacy, Non-Strategic Portfolio \| Office
Real Estate [Line Items]
Number of real estate properties	3
Company's Legacy, Non-Strategic Portfolio \| Multifamily
Real Estate [Line Items]
Number of real estate properties	1
Company's Legacy, Non-Strategic Portfolio \| Manufactured housing
Real Estate [Line Items]
Number of real estate properties	1
Company’s Core Portfolio \| Hotel
Real Estate [Line Items]
Number of real estate properties	1

Deferred Leasing Costs and Other Intangibles - Schedule of Deferred Leasing Costs and Intangibles (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Deferred leasing costs
Carrying Amount	$ 40,575	$ 42,345
Accumulated Amortization	(13,593)	(13,637)
Net Carrying Amount	26,982	28,708
Deferred Leasing Costs and Intangible Assets
Carrying Amount	152,440	171,802
Accumulated Amortization	(53,933)	(59,040)
Net Carrying Amount	98,507	112,762
Intangible Liabilities - Below-market lease values
Carrying Amount	19,492	32,652
Accumulated Amortization	(8,944)	(10,503)
Net Carrying Amount	10,548	22,149
In-place lease values
Deferred Leasing Costs and Intangible Assets
Carrying Amount	98,820	115,139
Accumulated Amortization	(33,841)	(39,093)
Net Carrying Amount	64,979	76,046
Above-market lease values
Deferred Leasing Costs and Intangible Assets
Carrying Amount	13,045	14,318
Accumulated Amortization	(6,499)	(6,310)
Net Carrying Amount	$ 6,546	$ 8,008

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, 2020	Mar. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Below-market lease values	$ 1,236	$ 1,625
Net increase (decrease) to property operating income	404	612
Deferred leasing costs	1,647	2,139
Amortization expense	5,973	7,732
Above-market lease values
Finite-Lived Intangible Assets [Line Items]
Mortgage notes above/below market value amortization	(832)	(1,013)
In-place lease values
Finite-Lived Intangible Assets [Line Items]
Mortgage notes above/below market value amortization	(4,350)	(5,474)
Other intangibles
Finite-Lived Intangible Assets [Line Items]
Mortgage notes above/below market value amortization	$ 24	$ (119)

Deferred Leasing Costs and Other Intangibles - Schedule of Amortization of Deferred Leasing Costs, Intangible Assets and Intangible Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Below-market lease values
2020	$ (3,347)
2021	(4,043)
2022	(2,875)
2023	(178)
2024	(44)
2025 and thereafter	(61)
Total	(10,548)	$ (22,149)
Deferred leasing costs
2020	4,712
2021	5,047
2022	4,252
2023	3,086
2024	1,863
2025 and thereafter	8,022
Net Carrying Amount	26,982	28,708
Net increase (decrease) to property operating income
Intangible assets (liabilities) and deferred leasing costs, amortization expense (income):
2020	(1,503)
2021	(2,371)
2022	(1,524)
2023	518
2024	472
2025 and thereafter	406
Total	(4,002)
Amortization expense
Intangible assets (liabilities) and deferred leasing costs, amortization expense (income):
2020	14,344
2021	15,316
2022	11,752
2023	7,766
2024	5,600
2025 and thereafter	37,183
Total	91,961
Above-market lease values
Above-market lease values
2020	1,844
2021	1,672
2022	1,351
2023	696
2024	516
2025 and thereafter	467
Net Carrying Amount	6,546	8,008
In-place lease values
Above-market lease values
2020	9,632
2021	10,269
2022	7,500
2023	4,680
2024	3,737
2025 and thereafter	29,161
Net Carrying Amount	$ 64,979	$ 76,046

Restricted Cash, Other Assets and Accrued and Other Liabilities - Summary of Restricted Cash (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	$ 159,521	$ 126,065	$ 107,441	$ 110,146
Margin pledged as collateral
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	83,401	19,536
Borrower escrow deposits
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	49,499	74,496
Real estate escrow reserves
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	15,132	18,020
Capital expenditure reserves
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	7,029	8,882
Working capital and other reserves
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	3,231	4,198
Tenant lockboxes
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	$ 1,229	$ 933

Restricted Cash, Other Assets and Accrued and Other Liabilities - Summary of Deferred Costs and Other Assets, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Other Assets [Abstract]
Right-of-use lease asset	$ 24,255	$ 25,480
Prepaid taxes and deferred tax assets	22,440	21,989
Deferred financing costs, net - credit facilities	7,815	8,382
Prepaid expenses	6,568	5,311
Investment deposits and pending deal costs	935	20,779
Other assets	621	1,644
Derivative asset	9	4,122
Total	$ 62,643	$ 87,707

Restricted Cash, Other Assets and Accrued and Other Liabilities - Summary of Other Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Accrued and other liabilities:
Derivative liability	$ 33,344	$ 19,133
Current and deferred tax liability	28,679	31,510
Operating lease liability	24,295	25,495
Accounts payable, accrued expenses and other liabilities	23,273	28,278
Interest payable	17,103	16,259
Prepaid rent and unearned revenue	14,464	16,744
Tenant security deposits	2,459	3,005
Unfunded CECL loan allowance	2,339
Total	$ 145,956	$ 140,424

Debt - Schedule of Debt (Details) kr in Billions	3 Months Ended
Debt - Schedule of Debt (Details) kr in Billions	Mar. 31, 2020 USD ($) property extension debt_instrument	May 07, 2020	May 06, 2020 USD ($)	Mar. 31, 2020 NOK (kr) property	Dec. 31, 2019 USD ($)
Debt Instrument [Line Items]
Principal amount	$ 3,257,619,000				$ 3,199,923,000
Carrying value	3,246,941,000				3,188,498,000
Mortgage and other notes payable, net	1,152,851,000				1,256,112,000
Net lease 2
Debt Instrument [Line Items]
Mortgage and other notes payable, net	$ 152,800,000			kr 1.6
Other real estate 10
Debt Instrument [Line Items]
Number of instruments \| debt_instrument	2
Weighted average interest rate (in percentage)	5.34%			5.34%
Securitization bonds payable, net
Debt Instrument [Line Items]
Principal amount	$ 840,423,000				840,423,000
Carrying value	$ 833,671,000				833,153,000
Securitization bonds payable, net \| CLNC 2019-FL1 \| LIBOR
Debt Instrument [Line Items]
Interest rate margin (in percentage)	1.59%
Mortgage and other notes payable, net
Debt Instrument [Line Items]
Principal amount	$ 1,156,777,000				1,260,267,000
Carrying value	1,152,851,000				1,256,112,000
Mortgage and other notes payable, net \| Loan 9
Debt Instrument [Line Items]
Principal amount	69,559,000				65,958,000
Carrying value	$ 69,559,000				65,958,000
Mortgage and other notes payable, net \| Loan 9 \| LIBOR
Debt Instrument [Line Items]
Interest rate margin (in percentage)	3.00%
Mortgage and other notes payable, net \| Other notes payable
Debt Instrument [Line Items]
Debt term extension available (in years)	1 year
Number of optional extensions to initial maturity date \| extension	3
Mortgage and other notes payable, net \| Net lease 1, periodic payment of principal and interest
Debt Instrument [Line Items]
Number of properties \| property	2			2
Mortgage and other notes payable, net \| Net lease 1, periodic payment of interest
Debt Instrument [Line Items]
Number of properties \| property	1			1
Credit facilities
Debt Instrument [Line Items]
Principal amount	$ 1,260,419,000				1,099,233,000
Carrying value	$ 1,260,419,000				1,099,233,000
Credit facilities \| LIBOR
Debt Instrument [Line Items]
Interest rate margin (in percentage)	2.25%
Credit facilities \| Master repurchase facilities
Debt Instrument [Line Items]
Capacity	$ 2,250,000,000
Principal amount	723,028,000				780,211,000
Carrying value	$ 723,028,000				780,211,000
Percent of recourse of the financed amount	25.00%			25.00%
Credit facilities \| CMBS credit facilities
Debt Instrument [Line Items]
Principal amount	$ 197,391,000				205,522,000
Carrying value	197,391,000				205,522,000
Credit facilities \| Bank credit facility
Debt Instrument [Line Items]
Capacity	560,000,000
Principal amount	340,000,000				113,500,000
Carrying value	340,000,000				113,500,000
Credit facilities \| Bank 1 facility 3 \| Master repurchase facilities
Debt Instrument [Line Items]
Capacity	400,000,000
Principal amount	109,404,000				106,309,000
Carrying value	$ 109,404,000				106,309,000
Debt term extension available (in years)	1 year
Number of optional extensions to initial maturity date \| extension	2
Credit facilities \| Bank 1 facility 3 \| Master repurchase facilities \| LIBOR
Debt Instrument [Line Items]
Interest rate margin (in percentage)	1.93%
Credit facilities \| Bank 2 facility 3 \| Master repurchase facilities
Debt Instrument [Line Items]
Capacity	$ 200,000,000
Principal amount	22,750,000				22,750,000
Carrying value	$ 22,750,000				22,750,000
Debt term extension available (in years)	1 year
Number of optional extensions to initial maturity date \| extension	2
Credit facilities \| Bank 2 facility 3 \| Master repurchase facilities \| LIBOR
Debt Instrument [Line Items]
Interest rate margin (in percentage)	2.50%
Credit facilities \| Bank 3 facility 3 \| Master repurchase facilities
Debt Instrument [Line Items]
Capacity	$ 600,000,000
Principal amount	222,147,000				265,633,000
Carrying value	$ 222,147,000				265,633,000
Credit facilities \| Bank 3 facility 3 \| Master repurchase facilities \| LIBOR
Debt Instrument [Line Items]
Interest rate margin (in percentage)	2.19%
Credit facilities \| Bank 7 facility 1 \| Master repurchase facilities
Debt Instrument [Line Items]
Capacity	$ 500,000,000
Principal amount	199,740,000				221,421,000
Carrying value	$ 199,740,000				221,421,000
Debt term extension available (in years)	1 year
Credit facilities \| Bank 7 facility 1 \| Master repurchase facilities \| LIBOR
Debt Instrument [Line Items]
Interest rate margin (in percentage)	1.93%
Credit facilities \| Bank 8 facility 1 \| Master repurchase facilities
Debt Instrument [Line Items]
Capacity	$ 250,000,000
Principal amount	168,987,000				164,098,000
Carrying value	$ 168,987,000				164,098,000
Debt term extension available (in years)	1 year
Credit facilities \| Bank 8 facility 1 \| Master repurchase facilities \| LIBOR
Debt Instrument [Line Items]
Interest rate margin (in percentage)	2.00%
Credit facilities \| Bank 9 Facility 1 \| Master repurchase facilities
Debt Instrument [Line Items]
Capacity	$ 300,000,000
Principal amount	0				0
Carrying value	$ 0				0
Debt term extension available (in years)	1 year
Number of optional extensions to initial maturity date \| extension	2
Credit facilities \| Bank 6 facility 1 fixed rate financing \| CMBS credit facilities
Debt Instrument [Line Items]
Principal amount	$ 22,600,000
Credit facilities \| Bank 6 facility 1 floating rate financing \| CMBS credit facilities
Debt Instrument [Line Items]
Principal amount	$ 63,400,000
Credit facilities \| Bank 6 facility 1 floating rate financing \| CMBS credit facilities \| LIBOR
Debt Instrument [Line Items]
Interest rate margin (in percentage)	1.77%
Credit facilities \| Bank 6 facility 2 fixed financing \| CMBS credit facilities
Debt Instrument [Line Items]
Contractual interest rate (in percentage)	4.50%			4.50%
Principal amount	$ 45,500,000
Credit facilities \| Bank 6 facility 2 floating financing \| CMBS credit facilities
Debt Instrument [Line Items]
Principal amount	$ 39,500,000
Credit facilities \| Bank 6 facility 2 floating financing \| CMBS credit facilities \| LIBOR
Debt Instrument [Line Items]
Interest rate margin (in percentage)	1.50%
Credit facilities \| Bank 1 facility 1 \| CMBS credit facilities
Debt Instrument [Line Items]
Principal amount	$ 13,477,000				20,375,000
Carrying value	$ 13,477,000				20,375,000
Credit facilities \| Bank 1 facility 1 \| CMBS credit facilities \| LIBOR
Debt Instrument [Line Items]
Interest rate margin (in percentage)	1.82%
Credit facilities \| Bank 1 facility 2 \| CMBS credit facilities
Debt Instrument [Line Items]
Principal amount	$ 12,907,000				18,834,000
Carrying value	$ 12,907,000				18,834,000
Credit facilities \| Bank 1 facility 2 \| CMBS credit facilities \| LIBOR
Debt Instrument [Line Items]
Interest rate margin (in percentage)	3.00%
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 1 \| 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]
Principal amount	86,035,000				83,584,000
Carrying value	86,035,000				83,584,000
Credit facilities \| Bank 6 facility 2 \| CMBS credit facilities
Debt Instrument [Line Items]
Principal amount	84,972,000				82,729,000
Carrying value	84,972,000				82,729,000
Bank credit facility
Debt Instrument [Line Items]
Principal amount	340,000,000				113,500,000
Carrying value	$ 340,000,000				113,500,000
Bank credit facility \| Bank credit facility
Debt Instrument [Line Items]
Debt term extension available (in years)	6 months
Number of optional extensions to initial maturity date \| extension	2
Minimum \| Securitization bonds payable, net
Debt Instrument [Line Items]
Initial debt term (in years)	2 years
Minimum \| Credit facilities \| Master repurchase facilities \| LIBOR
Debt Instrument [Line Items]
Contractual interest rate (in percentage)	1.10%			1.10%
Initial debt term (in years)	1 month
Minimum \| Credit facilities \| CMBS credit facilities
Debt Instrument [Line Items]
Initial debt term (in years)	1 month
Minimum \| Credit facilities \| Bank 9 Facility 1 \| Master repurchase facilities
Debt Instrument [Line Items]
Percent of recourse of the financed amount	25.00%			25.00%
Maximum \| Securitization bonds payable, net
Debt Instrument [Line Items]
Initial debt term (in years)	3 years
Maximum \| Credit facilities \| Master repurchase facilities \| LIBOR
Debt Instrument [Line Items]
Contractual interest rate (in percentage)	3.00%			3.00%
Maximum \| Credit facilities \| CMBS credit facilities
Debt Instrument [Line Items]
Initial debt term (in years)	3 months
Maximum \| Credit facilities \| Bank 9 Facility 1 \| Master repurchase facilities
Debt Instrument [Line Items]
Percent of recourse of the financed amount	50.00%			50.00%
Collateralized by a property in Company's Core Portfolio \| Net lease 6
Debt Instrument [Line Items]
Contractual interest rate (in percentage)	4.45%			4.45%
Collateralized by a property in Company's Core Portfolio \| Net lease 5
Debt Instrument [Line Items]
Contractual interest rate (in percentage)	4.08%			4.08%
Collateralized by a property in Company's Core Portfolio \| Net lease 3
Debt Instrument [Line Items]
Contractual interest rate (in percentage)	4.77%			4.77%
Collateralized by a property in Company's Core Portfolio \| Net lease 1
Debt Instrument [Line Items]
Contractual interest rate (in percentage)	4.31%			4.31%
Collateralized by a property in Company's Core Portfolio \| Net lease 2
Debt Instrument [Line Items]
Contractual interest rate (in percentage)	3.91%			3.91%
Collateralized by a property in Company's Core Portfolio \| Mortgage and other notes payable, net \| Net lease 6
Debt Instrument [Line Items]
Principal amount	$ 23,990,000				24,117,000
Carrying value	23,990,000				24,117,000
Collateralized by a property in Company's Core Portfolio \| Mortgage and other notes payable, net \| Net lease 5
Debt Instrument [Line Items]
Principal amount	31,677,000				31,821,000
Carrying value	31,406,000				31,539,000
Collateralized by a property in Company's Core Portfolio \| Mortgage and other notes payable, net \| Net lease 4
Debt Instrument [Line Items]
Principal amount	74,916,000				74,916,000
Carrying value	74,916,000				74,845,000
Collateralized by a property in Company's Core Portfolio \| Mortgage and other notes payable, net \| Net lease 3
Debt Instrument [Line Items]
Principal amount	200,000,000				200,000,000
Carrying value	198,541,000				198,521,000
Collateralized by a property in Company's Core Portfolio \| Mortgage and other notes payable, net \| Net lease 1
Debt Instrument [Line Items]
Principal amount	250,000,000				250,000,000
Carrying value	247,090,000				246,961,000
Collateralized by a property in Company's Core Portfolio \| Mortgage and other notes payable, net \| Net lease 2
Debt Instrument [Line Items]
Principal amount	152,768,000				181,952,000
Carrying value	$ 154,934,000				184,532,000
Collateralized by a property in Legacy, Non-Strategic Portfolio \| Net lease 5
Debt Instrument [Line Items]
Contractual interest rate (in percentage)	4.45%			4.45%
Collateralized by a property in Legacy, Non-Strategic Portfolio \| Net lease 4
Debt Instrument [Line Items]
Contractual interest rate (in percentage)	4.45%			4.45%
Collateralized by a property in Legacy, Non-Strategic Portfolio \| Net lease 3
Debt Instrument [Line Items]
Contractual interest rate (in percentage)	4.00%			4.00%
Collateralized by a property in Legacy, Non-Strategic Portfolio \| Net lease 1
Debt Instrument [Line Items]
Contractual interest rate (in percentage)	4.45%			4.45%
Collateralized by a property in Legacy, Non-Strategic Portfolio \| Other real estate 4
Debt Instrument [Line Items]
Contractual interest rate (in percentage)	4.84%			4.84%
Collateralized by a property in Legacy, Non-Strategic Portfolio \| Other real estate 2
Debt Instrument [Line Items]
Contractual interest rate (in percentage)	4.94%			4.94%
Collateralized by a property in Legacy, Non-Strategic Portfolio \| Other real estate 8
Debt Instrument [Line Items]
Contractual interest rate (in percentage)	5.15%			5.15%
Collateralized by a property in Legacy, Non-Strategic Portfolio \| Other real estate 10
Debt Instrument [Line Items]
Contractual interest rate (in percentage)	5.34%			5.34%
Collateralized by a property in Legacy, Non-Strategic Portfolio \| Other real estate 9
Debt Instrument [Line Items]
Contractual interest rate (in percentage)	3.98%			3.98%
Collateralized by a property in Legacy, Non-Strategic Portfolio \| Other real estate 1
Debt Instrument [Line Items]
Contractual interest rate (in percentage)	4.47%			4.47%
Collateralized by a property in Legacy, Non-Strategic Portfolio \| Other real estate 3
Debt Instrument [Line Items]
Contractual interest rate (in percentage)	4.30%			4.30%
Collateralized by a property in Legacy, Non-Strategic Portfolio \| Mortgage and other notes payable, net \| Net lease 6
Debt Instrument [Line Items]
Principal amount	$ 1,550,000				1,658,000
Carrying value	$ 1,510,000				1,615,000
Collateralized by a property in Legacy, Non-Strategic Portfolio \| Mortgage and other notes payable, net \| Net lease 6 \| LIBOR
Debt Instrument [Line Items]
Interest rate margin (in percentage)	2.15%
Collateralized by a property in Legacy, Non-Strategic Portfolio \| Mortgage and other notes payable, net \| Net lease 5
Debt Instrument [Line Items]
Principal amount	$ 3,406,000				3,422,000
Carrying value	3,317,000				3,329,000
Collateralized by a property in Legacy, Non-Strategic Portfolio \| Mortgage and other notes payable, net \| Net lease 4
Debt Instrument [Line Items]
Principal amount	7,349,000				7,384,000
Carrying value	$ 7,157,000				7,184,000
Collateralized by a property in Legacy, Non-Strategic Portfolio \| Mortgage and other notes payable, net \| Net lease 4 \| LIBOR
Debt Instrument [Line Items]
Interest rate margin (in percentage)	2.50%
Collateralized by a property in Legacy, Non-Strategic Portfolio \| Mortgage and other notes payable, net \| Net lease 3
Debt Instrument [Line Items]
Principal amount	$ 12,364,000				12,450,000
Carrying value	12,296,000				12,368,000
Collateralized by a property in Legacy, Non-Strategic Portfolio \| Mortgage and other notes payable, net \| Net lease 1
Debt Instrument [Line Items]
Principal amount	18,492,000				18,579,000
Carrying value	18,007,000				18,076,000
Collateralized by a property in Legacy, Non-Strategic Portfolio \| Mortgage and other notes payable, net \| Other real estate 4
Debt Instrument [Line Items]
Principal amount	42,705,000				42,925,000
Carrying value	$ 43,152,000				43,407,000
Debt term extension available (in years)	1 year
Collateralized by a property in Legacy, Non-Strategic Portfolio \| Mortgage and other notes payable, net \| Other real estate 2
Debt Instrument [Line Items]
Principal amount	$ 0				42,443,000
Carrying value	0				42,851,000
Collateralized by a property in Legacy, Non-Strategic Portfolio \| Mortgage and other notes payable, net \| Other real estate 8
Debt Instrument [Line Items]
Principal amount	15,764,000				15,819,000
Carrying value	16,270,000				16,324,000
Collateralized by a property in Legacy, Non-Strategic Portfolio \| Mortgage and other notes payable, net \| Other real estate 10
Debt Instrument [Line Items]
Principal amount	11,683,000				11,744,000
Carrying value	11,879,000				11,939,000
Collateralized by a property in Legacy, Non-Strategic Portfolio \| Mortgage and other notes payable, net \| Other real estate 9
Debt Instrument [Line Items]
Principal amount	23,774,000				23,885,000
Carrying value	23,022,000				23,133,000
Collateralized by a property in Legacy, Non-Strategic Portfolio \| Mortgage and other notes payable, net \| Other real estate 1
Debt Instrument [Line Items]
Principal amount	108,311,000				108,719,000
Carrying value	109,019,000				109,475,000
Collateralized by a property in Legacy, Non-Strategic Portfolio \| Mortgage and other notes payable, net \| Other real estate 3
Debt Instrument [Line Items]
Principal amount	74,803,000				75,256,000
Carrying value	74,148,000				74,554,000
Collateralized by a property in Legacy, Non-Strategic Portfolio \| Mortgage and other notes payable, net \| Other real estate 5
Debt Instrument [Line Items]
Principal amount	0				33,498,000
Carrying value	$ 0				32,801,000
Collateralized by a property in Legacy, Non-Strategic Portfolio \| Mortgage and other notes payable, net \| Other real estate 5 \| LIBOR
Debt Instrument [Line Items]
Interest rate margin (in percentage)	4.00%
Collateralized by a property in Legacy, Non-Strategic Portfolio \| Mortgage and other notes payable, net \| Other real estate 6
Debt Instrument [Line Items]
Principal amount	$ 21,500,000				21,500,000
Carrying value	$ 20,922,000				20,825,000
Debt term extension available (in years)	1 year
Number of optional extensions to initial maturity date \| extension	2
Collateralized by a property in Legacy, Non-Strategic Portfolio \| Mortgage and other notes payable, net \| Other real estate 6 \| LIBOR
Debt Instrument [Line Items]
Interest rate margin (in percentage)	2.95%
Collateralized by properties in Legacy, Non-Strategic Portfolio \| Net lease 1
Debt Instrument [Line Items]
Contractual interest rate (in percentage)	4.38%			4.38%
Collateralized by properties in Legacy, Non-Strategic Portfolio \| Mortgage and other notes payable, net \| Net lease 1
Debt Instrument [Line Items]
Principal amount	$ 12,166,000				12,221,000
Carrying value	$ 11,716,000				11,758,000
Number of properties \| property	3			3
CLNC 2019-FL1 \| Investment grade notes
Debt Instrument [Line Items]
Principal amount	$ 840,423,000				840,423,000
Carrying value	$ 833,671,000				$ 833,153,000
Subsequent event \| Credit facilities \| Bank credit facility
Debt Instrument [Line Items]
Capacity			$ 450,000,000.0
Subsequent event \| Credit facilities \| Bank 6 facility 1 fixed rate financing \| CMBS credit facilities
Debt Instrument [Line Items]
Contractual interest rate (in percentage)		4.50%

Debt - Future Minimum Principal Payments (Details) $ in Thousands	Mar. 31, 2020 USD ($)
Future Scheduled Minimum Principal Payments
2020	$ 211,060
2021	258,421
2022	447,157
2023	494,529
2024	217,353
2025 and thereafter	1,629,099
Total	3,257,619
Securitization Bonds Payable, Net
Future Scheduled Minimum Principal Payments
2020	0
2021	0
2022	0
2023	0
2024	0
2025 and thereafter	840,423
Total	840,423
Mortgage Notes Payable, Net
Future Scheduled Minimum Principal Payments
2020	13,669
2021	89,434
2022	2,520
2023	45,125
2024	217,353
2025 and thereafter	788,676
Total	1,156,777
Future minimum principal payments related to assets held for sale	131,300
Credit facilities
Future Scheduled Minimum Principal Payments
2020	197,391
2021	168,987
2022	444,637
2023	449,404
2024	0
2025 and thereafter	0
Total	$ 1,260,419

Debt - Narrative (Details)			3 Months Ended
Debt - Narrative (Details)	Mar. 31, 2020 USD ($) loan agreement	Feb. 01, 2018 USD ($)	Mar. 31, 2020 USD ($) loan extension agreement	Mar. 31, 2019	Oct. 01, 2019 loan	Feb. 04, 2019 USD ($)
Debt Instrument [Line Items]
Principal amount	$ 3,257,619,000		$ 3,257,619,000
Carrying value of investments in tranche	28,500,000		28,500,000
Master repurchase facilities
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 2,300,000,000		$ 2,300,000,000
Real estate securities, available for sale \| CMBS credit facilities
Debt Instrument [Line Items]
Number of master repurchase agreements \| agreement	8		8
Payment on margin calls			$ 48,900,000
Master repurchase facilities
Debt Instrument [Line Items]
Principal amount	$ 1,260,419,000		1,260,419,000
Master repurchase facilities \| Bank credit facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 560,000,000		$ 560,000,000
Master repurchase facilities \| Revolving credit facility \| Credit Agreement
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 400,000,000.0				$ 560,000,000.0
Number of optional extensions to initial maturity date \| extension			2
Debt term extension available (in years)			6 months
Unused amount, commitment fee percentage	0.25%
Master repurchase facilities \| Master repurchase facilities
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 2,250,000,000		$ 2,250,000,000
Principal amount	723,000,000.0		723,000,000.0
Master repurchase facilities \| CMBS credit facilities
Debt Instrument [Line Items]
Subordinated investments in tranche	24,600,000		24,600,000
Master repurchase facilities \| Non-subordinated CMBS
Debt Instrument [Line Items]
Principal amount	172,800,000		172,800,000
Bank credit facility
Debt Instrument [Line Items]
Principal amount	340,000,000.0		$ 340,000,000.0
Bank credit facility \| Bank credit facility
Debt Instrument [Line Items]
Number of optional extensions to initial maturity date \| extension			2
Debt term extension available (in years)			6 months
Securitization Bonds Payable, Net
Debt Instrument [Line Items]
Principal amount	840,423,000		$ 840,423,000
LIBOR \| Master repurchase facilities
Debt Instrument [Line Items]
Interest rate margin (in percentage)			2.25%
LIBOR \| Master repurchase facilities \| Revolving credit facility \| Credit Agreement
Debt Instrument [Line Items]
Interest rate margin (in percentage)		2.25%
Base Rate \| Master repurchase facilities \| Revolving credit facility \| Credit Agreement
Debt Instrument [Line Items]
Interest rate margin (in percentage)		1.25%
Collateral pledged
Debt Instrument [Line Items]
Carrying value of CMBS Credit Facilities serving as collateral	178,300,000		$ 178,300,000
Minimum \| Master repurchase facilities \| Revolving credit facility \| Credit Agreement
Debt Instrument [Line Items]
Unused amount, commitment fee percentage				0.25%
Maximum \| Master repurchase facilities \| Revolving credit facility \| Credit Agreement
Debt Instrument [Line Items]
Unused amount, commitment fee percentage				0.35%
Senior loan \| Master repurchase facilities \| Master repurchase facilities
Debt Instrument [Line Items]
Carrying value served as collateral	1,000,000,000.0		1,000,000,000.0
Senior loan \| Securitization Bonds Payable, Net
Debt Instrument [Line Items]
Carrying value served as collateral	$ 1,000,000,000.0		$ 1,000,000,000.0
Hospitality loan
Debt Instrument [Line Items]
Loans paydown \| loan	2		2
Retail loan
Debt Instrument [Line Items]
Loans paydown \| loan	1		1
CLNC 2019-FL1 \| Investment grade notes
Debt Instrument [Line Items]
Sale of notes			$ 840,400,000
Advance rate					83.50%
Number of loans \| loan					22
CLNC 2019-FL1 \| LIBOR \| Investment grade notes
Debt Instrument [Line Items]
Weighted average cost of funds percentage					1.59%

Related Party Arrangements - Fees to the Manager (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Related Party Transaction [Line Items]
Related party expenses incurred	$ 2,700,000	$ 2,700,000
Incentive fees	$ 0	0
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%
Affiliated Entity \| Asset management fees
Related Party Transaction [Line Items]
Related party expenses incurred	$ 7,900,000	$ 11,400,000
Due to related party	$ 8,200,000		$ 8,400,000

Related Party Arrangements - Reimbursements of Expenses (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Related Party Transaction [Line Items]
Related party expenses incurred	$ 2.7	$ 2.7
Affiliated Entity \| Operating costs
Related Party Transaction [Line Items]
Due to related party	$ 2.7		$ 2.7

Related Party Arrangements - Other Payables to Manager (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Affiliated Entity \| Other payables to manager
Related Party Transaction [Line Items]
Assumed in the combination	$ 0	$ 1,600,000

Related Party Arrangements - Manager Equity Plan (Details) - USD ($)
$ in Thousands

1 Months Ended

3 Months Ended

12 Months Ended

Mar. 31, 2020

Dec. 31, 2019

Mar. 31, 2019

Oct. 31, 2018

Jul. 31, 2018

May 31, 2018

Mar. 31, 2018

Jul. 31, 2017

Mar. 31, 2020

Mar. 31, 2019

Dec. 31, 2019

Jul. 01, 2019

Jun. 30, 2019

Jun. 30, 2018

Granted (in shares)

Outstanding (in shares)

735,473

1,335,590

735,473

1,335,590

Share-based compensation expense

$ 342

$ 1,843

Loans and preferred equity held for investment, net

^[1]

$ 2,351,278

$ 2,576,332

2,351,278

$ 2,576,332

Unfunded commitment remaining

32,200

Purchase of Class A office campus

2,413,251

2,858,423

2,413,251

2,858,423

127,356

Carrying value

3,246,941

3,188,498

3,246,941

3,188,498

Maturity period of debt instruments depending upon the asset type (in years)

$ 2,403,472

2,403,472

4 years 1 month 6 days

Land site and development of office building

$ 69,900

Joint venture, total commitment

50.00%

$ 139,700

Maturity period of debt instruments depending upon the asset type (in years)

3 years 6 months

Mixed-use development project in Ireland

$ 162,400

Joint venture, total commitment

61.00%

$ 266,500

Mezzanine loan | Investment in mezzanine loan

Mezzanine loan investment

$ 60,000

Mezzanine loan

$ 180,000

$ 101,800

Fixed interest rate (In percentage)

31.80%

13.00%

Unfunded commitment remaining

$ 32,200

Mezzanine loan | Upsized Mezzanine Loan with Affiliate

$ 101,800

Fixed interest rate (In percentage)

45.20%

13.00%

Management

Granted (in shares)

800,000

978,946

Outstanding (in shares)

735,473

Share-based compensation expense

$ 200

$ 1,800

Affiliated Entity

Purchase of Class A office campus

$ 326,800

Carrying value

$ 197,700

Affiliated Entity | Land site and development of office building

Affiliated Entity | Mixed-use development project in Ireland

50.00%

Affiliated Entity | Mezzanine loan | Investment in mezzanine loan

39.00%

Affiliated Entity | Preferred equity investment

68.20%

27.20%

Preferred equity debt investment fixed interest rate (in percentage)

$ 89,100

12.00%

July 2018 Senior Mortgage Private Bond | Affiliated Entity

Fixed interest rate (In percentage)

3.91%

Initial debt term (in years)

5 years

Fixed rate

Fixed rate | Preferred equity interests

$ 256,439

351,351

256,439

351,351

Preferred equity debt investment fixed interest rate (in percentage)

$ 116,901

$ 115,384

116,901

115,384

12.50%

Fixed rate | Preferred equity interests | Land site and development of office building

Preferred equity debt investment fixed interest rate (in percentage)

12.50%

Fixed rate | Preferred equity interests | Mixed-use development project in Ireland

Preferred equity debt investment fixed interest rate (in percentage)

15.00%

Maturity term (in years)

2 years

LIBOR | Mezzanine loans | Mezzanine Loan, Luxury Condominium Development Project in New York, New York

Loan interest rate (in percentage)

9.50%

Loans and preferred equity held for investment | Fixed rate

Loans and preferred equity held for investment | Fixed rate | Preferred equity interests

$ 255,470

$ 350,264

255,470

350,264

Loans and preferred equity held for investment | Fixed rate | Preferred equity interests | Land site and development of office building

$ 116,856

$ 115,313

$ 116,856

$ 115,313

Loans and preferred equity held for investment | Mezzanine loans | Mezzanine Loan, Luxury Condominium Development Project in New York, New York

$ 66,700

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

$ 20,000

[1]	Net of $52.2 million and $272.6 million of allowance for loan losses at March 31, 2020 and December 31, 2019, respectively. See Note 3, “Loans and Preferred Equity Held for Investments, net and Loans Held for Sale” for further details.

Equity-Based Compensation - Narrative (Details) - USD ($) $ in Thousands, shares in Millions		3 Months Ended
	Mar. 31, 2020	Mar. 31, 2020	Mar. 31, 2019	Jan. 29, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value at vesting date		$ 2,600	$ 4,900
Share-based compensation expense		342	$ 1,843
Compensation cost not yet recognized	$ 7,500	$ 7,500
Compensation cost not yet recognized, period for recognition	1 year 8 months 12 days
Class A
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)				4.0

Equity-Based Compensation - Summary of Awards Granted or Vested (Details)	3 Months Ended
	Mar. 31, 2020 $ / shares shares
Number of Shares [Roll Forward]
Unvested Shares at beginning of period (in shares)	1,335,590
Granted (in shares)	0
Vested (in shares)	(427,841)
Forfeited (in shares)	(172,276)
Unvested shares at end of period (in shares)	735,473
Weighted Average Grant Date Fair Value [Roll Forward]
Unvested Shares at beginning of period, weighted average grant date fair value (in dollars per share) \| $ / shares	$ 17.79
Granted, weighted average grant date fair value (in dollars per share) \| $ / shares	0
Vested, weighted average grant date fair value (in dollars per share) \| $ / shares	17.36
Forfeited, weighted average grant date fair value (in dollars per share) \| $ / shares	17.25
Unvested shares at end of period, weighted average grant date fair value (Unaudited) (in dollars per share) \| $ / shares	$ 17.65
Restricted Stock
Number of Shares [Roll Forward]
Unvested Shares at beginning of period (in shares)	1,335,590
Granted (in shares)	0
Vested (in shares)	(427,841)
Forfeited (in shares)	(172,276)
Unvested shares at end of period (in shares)	735,473

Stockholders' Equity - Narrative (Details) - USD ($)				3 Months Ended
Stockholders' Equity - Narrative (Details) - USD ($)	Mar. 16, 2020	Feb. 14, 2020	Jan. 15, 2020	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Jan. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for issuance (in shares)				1,000,000,000.0
Common stock, par value (in dollars per share)				$ 0.01		$ 0.01
Common stock, shares authorized (in shares)				950,000,000		905,000,000
Preferred stock, shares authorized (in shares)				50,000,000.0		50,000,000
Preferred stock, shares issued (in shares)				0		0
Preferred stock, shares outstanding (in shares)				0		0
Dividends declared per share of common stock (in dollars per share)	$ 0.10	$ 0.10	$ 0.10
Class A
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, par value (in dollars per share)							$ 0.01
Common stock, shares authorized (in shares)				950,000,000.0
Dividends declared per share of common stock (in dollars per share)				$ 0.30	$ 0.44
Stock repurchase program, amount authorized for repurchase				$ 300,000,000.0
Shares repurchased under Stock Repurchase Program (in shares)				0

Stockholders' Equity - Dividends (Details) - $ / shares	Mar. 16, 2020	Feb. 14, 2020	Jan. 15, 2020
Subsequent Event [Line Items]
Dividends declared per share of common stock (in dollars per share)	$ 0.10	$ 0.10	$ 0.10

Stockholders' Equity - AOCI (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
AOCI Attributable to Parent, Net of Tax [Roll Forward]
AOCI, beginning balance	$ 2,119,022
Other comprehensive income (loss)	(70,999)	$ 13,519
AOCI, ending balance	1,906,680
AOCI Attributable to Noncontrolling Interest, Net of Tax [Abstract]
Other comprehensive income (loss)	(1,702)	324
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
AOCI, beginning balance	28,294	(399)
AOCI, ending balance	(42,705)	13,120
Unrealized gain (loss) on real estate securities, available for sale
AOCI Attributable to Parent, Net of Tax [Roll Forward]
AOCI, beginning balance	15,909	(1,295)
Other comprehensive income (loss)	(73,273)	9,530
AOCI, ending balance	(57,364)	8,235
Unrealized gain on net investment hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
AOCI, beginning balance	25,872	11,037
Other comprehensive income (loss)	21,255	7,222
AOCI, ending balance	47,127	18,259
Foreign currency translation loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
AOCI, beginning balance	(13,487)	(10,141)
Other comprehensive income (loss)	(18,981)	(3,233)
AOCI, ending balance	(32,468)	(13,374)
Unrealized gain (loss) on real estate securities, available for sale
AOCI Attributable to Noncontrolling Interest, Net of Tax [Abstract]
AOCI, beginning balance	612	(32)
Other comprehensive income (loss)	(1,756)	228
AOCI, ending balance	(1,144)	196
Unrealized gain (loss) on net investment hedges
AOCI Attributable to Noncontrolling Interest, Net of Tax [Abstract]
AOCI, beginning balance	893	268
Other comprehensive income (loss)	509	173
AOCI, ending balance	1,402	441
Foreign currency translation gain (loss)
AOCI Attributable to Noncontrolling Interest, Net of Tax [Abstract]
AOCI, beginning balance	(801)	(246)
Other comprehensive income (loss)	(455)	(77)
AOCI, ending balance	(1,256)	(323)
AOCI Attributable to Noncontrolling Interest
AOCI Attributable to Noncontrolling Interest, Net of Tax [Abstract]
AOCI, beginning balance	704	(10)
AOCI, ending balance	$ (998)	$ 314

Noncontrolling Interests (Details) - USD ($) $ in Thousands	3 Months Ended
Noncontrolling Interests (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Mar. 31, 2019
Noncontrolling Interest [Abstract]
Net income (loss) attributable to noncontrolling interests	$ (1,892)	$ 347
Net income (loss) attributable to noncontrolling interests, investment entities	$ 523	$ (298)

Fair Value - Financial Assets Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Assets:
Real estate securities, available for sale	$ 179,572	$ 252,824
Mortgage loans held in securitization trusts, at fair value	1,822,991	1,872,970
Other assets - derivative assets	9	4,122
Liabilities:
Mortgage obligations issued by securitization trusts, at fair value	1,732,388	1,762,914
Other liabilities - derivative liabilities	33,344	19,133
Recurring basis
Assets:
Investments in unconsolidated ventures - PE Investments	8,764	10,283
Real estate securities, available for sale	179,572	252,824
Mortgage loans held in securitization trusts, at fair value	1,822,991	1,872,970
Other assets - derivative assets	9	4,122
Liabilities:
Mortgage obligations issued by securitization trusts, at fair value	1,732,388	1,762,914
Other liabilities - derivative liabilities	33,344	19,133
Recurring basis \| Level 1
Assets:
Investments in unconsolidated ventures - PE Investments	0	0
Real estate securities, available for sale	0	0
Mortgage loans held in securitization trusts, at fair value	0	0
Other assets - derivative assets	0	0
Liabilities:
Mortgage obligations issued by securitization trusts, at fair value	0	0
Other liabilities - derivative liabilities	0	0
Recurring basis \| Level 2
Assets:
Investments in unconsolidated ventures - PE Investments	124	1,425
Real estate securities, available for sale	179,572	252,824
Mortgage loans held in securitization trusts, at fair value	0	0
Other assets - derivative assets	9	4,122
Liabilities:
Mortgage obligations issued by securitization trusts, at fair value	1,732,388	1,762,914
Other liabilities - derivative liabilities	33,344	19,133
Recurring basis \| Level 3
Assets:
Investments in unconsolidated ventures - PE Investments	8,640	8,858
Real estate securities, available for sale		0
Mortgage loans held in securitization trusts, at fair value	1,822,991	1,872,970
Other assets - derivative assets	0	0
Liabilities:
Mortgage obligations issued by securitization trusts, at fair value	0	0
Other liabilities - derivative liabilities	$ 0	$ 0

Fair Value - Changes in Fair Value of Financial Assets Measured on a Recurring Basis (Details) $ in Thousands	1 Months Ended	3 Months Ended
	Jul. 31, 2019 securitization_trust	Mar. 31, 2020 USD ($)	Mar. 31, 2019 USD ($)
Additional information about financial assets
Realized gain in earnings		$ 0	$ 48
Investments in unconsolidated ventures - PE Investments \| Recurring basis \| Level 3
Additional information about financial assets
Beginning balance		8,858	160,851
Contributions/purchases		0	151
Distributions/paydowns		(887)	(18,407)
Deconsolidation of securitization trust		0	0
Equity in earnings		669	0
Sale of investments		0	(48,930)
Transfers out of Level 3			(84,807)
Unrealized gain (loss) in earnings		0	0
Realized gain in earnings			0
Ending balance		8,640
Mortgage obligations issued by securitization trusts \| Recurring basis \| Level 3
Additional information about financial assets
Beginning balance		1,872,970	3,116,978
Contributions/purchases		0	0
Distributions/paydowns		(6,578)	(55,288)
Deconsolidation of securitization trust		0	(1,239,627)
Equity in earnings		0	0
Sale of investments		0	(39,848)
Transfers out of Level 3		0	0
Unrealized gain (loss) in earnings		(43,401)	87,983
Realized gain in earnings		0	$ 2,772
Ending balance		1,822,991
Unrealized loss in earnings		$ 23,900
Primary beneficiary
Additional information about financial assets
Number of securitization trusts sold \| securitization_trust	1

Fair Value - Narrative (Details) $ in Thousands	1 Months Ended	3 Months Ended
Fair Value - Narrative (Details) $ in Thousands	Jul. 31, 2019 securitization_trust	Mar. 31, 2020 USD ($) measurement_input loan	Mar. 31, 2019 USD ($)	Dec. 31, 2019 measurement_input
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Realized gain in earnings		$ 0	$ 48
Unrealized gain on mortgage loans and obligations held in securitization trusts, net		19,452	(1,029)
Provision for loan losses		69,932	0
Fair value, measurements, nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Provision for loan losses		68,282	0
Investments in unconsolidated ventures - PE Investments \| Level 3 \| Recurring basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Realized gain in earnings			0
Mortgage obligations issued by securitization trusts \| Level 3 \| Recurring basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Realized gain in earnings		$ 0	$ 2,772
Discount Rate \| Investments in unconsolidated ventures - PE Investments \| Level 3 \| Recurring basis \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
PE investment, measurement input \| measurement_input		0.110
Discount Rate \| Investments in unconsolidated ventures - PE Investments \| Level 3 \| Recurring basis \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
PE investment, measurement input \| measurement_input		0.120
Measurement Input, Yield \| 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 (in percentage) \| measurement_input		0.142		0.150
Measurement Input, Yield \| 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 (in percentage) \| measurement_input		0.341		0.161
Measurement Input, Expected Term \| 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		5 years 7 months 6 days	5 years 4 months 24 days
Terminal Capitalization Rate \| Fair value, measurements, nonrecurring \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate investment property, net, measurement input (in percentage) \| measurement_input		0.13
Legacy, non-strategic portfolio
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of loans \| loan		1
Core
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Realized gain in earnings			$ 48
Unrealized gain on mortgage loans and obligations held in securitization trusts, net		$ 19,452	(1,029)
Non-Core \| Legacy, non-strategic portfolio
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Realized gain in earnings			0
Unrealized gain on mortgage loans and obligations held in securitization trusts, net		0	0
Primary beneficiary
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of securitization trusts sold \| securitization_trust	1
CECL reserve on Loans and preferred equity held for investment, net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Provision for loan losses		31,500
CECL reserve on Loans and preferred equity held for investment, net \| Fair value, measurements, nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Provision for loan losses		31,499	0
Loans held for sale
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Provision for loan losses		36,800
Loans held for sale \| Fair value, measurements, nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Provision for loan losses		$ 36,783	$ 0

Fair Value - Principal Amount, Carrying Value and Fair Value of Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Financial assets:
Unpaid Principal Balance	$ 2,413,251	$ 2,858,423
Financial liabilities:
Principal amount, financial liabilities	3,257,619	3,199,923
Future funding commitments	236,700	276,600
Carrying Value
Financial assets:
Loans and preferred equity held for investment, net	2,351,278	2,576,332
Fair Value
Financial assets:
Loans and preferred equity held for investment, net	2,361,776	2,470,561
Securitization bonds payable, net
Financial liabilities:
Principal amount, financial liabilities	840,423	840,423
Securitization bonds payable, net \| Carrying Value
Financial liabilities:
Financial liabilities	833,671	833,153
Securitization bonds payable, net \| Fair Value
Financial liabilities:
Financial liabilities	840,423	840,423
Mortgage and other notes payable, net
Financial liabilities:
Principal amount, financial liabilities	1,156,777	1,260,267
Mortgage and other notes payable, net \| Carrying Value
Financial liabilities:
Financial liabilities	1,152,851	1,256,112
Mortgage and other notes payable, net \| Fair Value
Financial liabilities:
Financial liabilities	1,156,461	1,260,675
Master repurchase facilities
Financial liabilities:
Principal amount, financial liabilities	1,260,419	1,099,233
Master repurchase facilities \| Carrying Value
Financial liabilities:
Financial liabilities	1,260,419	1,099,233
Master repurchase facilities \| Fair Value
Financial liabilities:
Financial liabilities	$ 1,260,419	$ 1,099,233

Fair Value - Summary of Assets Carried at Fair Value on a Nonrecurring Basis (Details) - USD ($)
$ in Thousands

Mar. 31, 2020

Dec. 31, 2019

Loans and preferred equity held for investment, net

^[1]

$ 2,351,278

$ 2,576,332

1,226,988

1,484,796

Fair value, measurements, nonrecurring

270,680

189,470

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Loans and preferred equity held for investment, net

2,351,278

104,797

21,191

5,016

344,726

448,690

Investments in unconsolidated ventures - PE Investments

162,403

134,966

195,393

211,024

Fair value, measurements, nonrecurring | Level 1

34,005

42,122

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Loans and preferred equity held for investment, net

Investments in unconsolidated ventures - PE Investments

Fair value, measurements, nonrecurring | Level 2

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Loans and preferred equity held for investment, net

Investments in unconsolidated ventures - PE Investments

Fair value, measurements, nonrecurring | Level 3

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Loans and preferred equity held for investment, net

2,351,278

104,797

21,191

5,016

344,726

448,690

Investments in unconsolidated ventures - PE Investments

162,403

134,966

195,393

211,024

$ 34,005

$ 42,122

[1]	Net of $52.2 million and $272.6 million of allowance for loan losses at March 31, 2020 and December 31, 2019, respectively. See Note 3, “Loans and Preferred Equity Held for Investments, net and Loans Held for Sale” for further details.

Fair Value - Summary of the Fair Value Write-downs to Assets Carried at nonrecurring Fair Values (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Provision for loan losses:
Provision for loan losses	$ 69,932	$ 0
Loans and preferred equity held for investment, net
Provision for loan losses:
Provision for loan losses	31,500
Loans held for sale
Provision for loan losses:
Provision for loan losses	36,800
Fair value, measurements, nonrecurring
Provision for loan losses:
Provision for loan losses	68,282	0
Fair value, measurements, nonrecurring \| Loans and preferred equity held for investment, net
Provision for loan losses:
Provision for loan losses	31,499	0
Fair value, measurements, nonrecurring \| Loans held for sale
Provision for loan losses:
Provision for loan losses	$ 36,783	$ 0

Derivatives - Schedule of Derivatives Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Derivative Assets
Derivative assets included in other assets	$ 9	$ 4,122
Derivative Liabilities
Derivative liability included in accrued and other liabilities	(33,344)	(19,133)
Other assets
Derivative Assets
Designated hedges included in other assets	0	0
Non-designated hedges included in other assets	9	4,122
Derivative assets included in other assets	9	4,122
Other assets \| Foreign exchange contracts
Derivative Assets
Designated hedges included in other assets	0	0
Non-designated hedges included in other assets	0	4,122
Derivative assets included in other assets	0	4,122
Other assets \| Interest rate contracts
Derivative Assets
Designated hedges included in other assets	0	0
Non-designated hedges included in other assets	9	0
Derivative assets included in other assets	9	0
CECL reserve on Accrued and other liabilities
Derivative Liabilities
Designated hedges included in accrued and other liabilities	0	(2,128)
Non-designated hedges included in accrued and other liabilities	(33,344)	(17,005)
Derivative liability included in accrued and other liabilities	(33,344)	(19,133)
CECL reserve on Accrued and other liabilities \| Foreign exchange contracts
Derivative Liabilities
Designated hedges included in accrued and other liabilities	0	(2,128)
Non-designated hedges included in accrued and other liabilities	0	(29)
Derivative liability included in accrued and other liabilities	0	(2,157)
CECL reserve on Accrued and other liabilities \| Interest rate contracts
Derivative Liabilities
Designated hedges included in accrued and other liabilities	0	0
Non-designated hedges included in accrued and other liabilities	(33,344)	(16,976)
Derivative liability included in accrued and other liabilities	$ (33,344)	$ (16,976)

Derivatives - Narrative (Details) - USD ($)	1 Months Ended	3 Months Ended		12 Months Ended
Derivatives - Narrative (Details) - USD ($)	Apr. 30, 2020	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	May 07, 2020
Derivative [Line Items]
Cash collateral to counterparties for its derivative contracts		$ 14,500,000
Cash collateral for the derivative contracts		33,400,000
Net receipts on settlement of derivative instruments		19,637,000	$ 1,638,000
Realized gain (loss) non-designated foreign exchange contracts		8,738,000	$ 0
Gain (loss) was transferred from accumulated other comprehensive income (loss)		0		$ 0
Subsequent event
Derivative [Line Items]
Cash collateral to counterparties for its derivative contracts	$ 15,900,000
Cash collateral for the derivative contracts					$ 17,400,000
NOK and EUR FX forwards
Derivative [Line Items]
Net receipts on settlement of derivative instruments		$ 28,200,000
Interest Rate Swap \| Designated \| Subsequent event
Derivative [Line Items]
Loss on derivative	$ 16,400,000

Derivatives - Summary of Derivative Contracts (Details) - Interest Rate Swap $ in Thousands	Mar. 31, 2020 USD ($)
Designated
Derivative [Line Items]
Notional Amount	$ 0
Non-Designated
Derivative [Line Items]
Notional Amount	$ 366,730

Derivatives - Summary of Derivative Effects (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Derivative [Line Items]
Other gain (loss), net	$ (20,454)	$ (3,846)
Realized gain (loss) non-designated foreign exchange contracts	8,738	0
Non-Designated \| Foreign exchange contracts
Derivative [Line Items]
Non-designated foreign exchange contracts	(4,084)	237
Non-Designated \| Interest rate contracts
Derivative [Line Items]
Non-designated interest rate contracts	(16,370)	(4,083)
Designated
Derivative [Line Items]
Designated foreign exchange contracts	21,764	7,395
Designated \| Foreign exchange contracts
Derivative [Line Items]
Designated foreign exchange contracts	$ 21,764	$ 7,395

Derivatives - Offsetting Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Derivative Assets
Gross amounts of assets included on consolidated balance sheets	$ 9	$ 4,122
Gross amounts not offset on consolidated balance sheets (assets)	(9)	(2,157)
Gross amounts not offset on consolidated balance sheets (cash collateral pledged)	0	0
Net amounts of assets	0	1,965
Derivative Liabilities
Gross amounts of (liabilities) included on consolidated balance sheets	(33,344)	(19,133)
Gross amounts not offset on consolidated balance sheets liabilities	9	2,157
Gross amounts not offset on consolidated balance sheets (cash collateral pledged)	33,335	16,976
Net amounts of liabilities	0	0
Foreign exchange contracts
Derivative Assets
Gross amounts of assets included on consolidated balance sheets		4,122
Gross amounts not offset on consolidated balance sheets (assets)		(2,157)
Gross amounts not offset on consolidated balance sheets (cash collateral pledged)		0
Net amounts of assets		1,965
Derivative Liabilities
Gross amounts of (liabilities) included on consolidated balance sheets		(2,157)
Gross amounts not offset on consolidated balance sheets liabilities		2,157
Gross amounts not offset on consolidated balance sheets (cash collateral pledged)		0
Net amounts of liabilities		0
Interest rate contracts
Derivative Assets
Gross amounts of assets included on consolidated balance sheets	9
Gross amounts not offset on consolidated balance sheets (assets)	(9)
Gross amounts not offset on consolidated balance sheets (cash collateral pledged)	0
Net amounts of assets	0
Derivative Liabilities
Gross amounts of (liabilities) included on consolidated balance sheets	(33,344)	(16,976)
Gross amounts not offset on consolidated balance sheets liabilities	9	0
Gross amounts not offset on consolidated balance sheets (cash collateral pledged)	33,335	16,976
Net amounts of liabilities	$ 0	$ 0

Commitments and Contingencies - Lending Commitments (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Future funding commitments	$ 236.7	$ 276.6
Total unfunded commitments for equity method investments	32.2
Senior loans
Debt Instrument [Line Items]
Future funding commitments	162.1
Securitized loans
Debt Instrument [Line Items]
Future funding commitments	37.3
Corporate term loans
Debt Instrument [Line Items]
Future funding commitments	1.2
Mezzanine loans
Debt Instrument [Line Items]
Future funding commitments	$ 36.1

Commitments and Contingencies - Ground Lease Obligation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Minimum lease expense	$ 804	$ 809
Ground rent expense	$ 800	$ 800
Weighted average remaining lease term	14 years 2 months 12 days
Weighted average discount rate (as a percentage)	5.00%

Commitments and Contingencies - Summary of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Minimum lease expense	$ 804	$ 809
Variable lease expense	0	0
Operating lease expense	$ 804	$ 809

Commitments and Contingencies - Future Minimum Rental Payments (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Noncancelable ground leases on real estate
Remainder of 2020	$ 2,390	$ 3,232
2021	3,171	3,216
2022	3,199	3,244
2023	3,229	3,274
2024	2,338	2,383
2025 and thereafter	21,725	23,079
Total lease payments	36,052	38,428
Less: Present value discount	11,757	12,933
Operating lease liability (Note 8)	$ 24,295	$ 25,495

Segment Reporting - Reportable Operating Segments (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($) segment	Mar. 31, 2019 USD ($)	Dec. 31, 2019 USD ($)
Segment Reporting Information [Line Items]
Number of segments \| segment	5
Net interest income (loss)	$ 27,856	$ 21,958
Property and other income	61,922	63,311
Management fee expense	(7,946)	(11,358)
Property operating expense	(22,531)	(28,180)
Transaction, investment and servicing expense	(3,134)	(529)
Interest expense on real estate	(13,078)	(13,607)
Depreciation and amortization	(17,976)	(27,662)
Provision for loan losses	(69,932)	0
Impairment of operating real estate	(4,126)	0
Administrative expense	(7,038)	(6,653)
Unrealized gain on mortgage loans and obligations held in securitization trusts, net	(19,452)	1,029
Realized gain on mortgage loans and obligations held in securitization trusts, net	0	48
Other loss, net	(20,162)	(5,079)
Loss before equity in earnings of unconsolidated ventures and income taxes	(95,597)	(6,722)
Equity in earnings of unconsolidated ventures	17,167	21,310
Income tax benefit (expense)	(1,711)	369
Net income (loss)	(80,141)	14,957
Total Assets	7,193,588		$ 7,414,306
Equity method investments	577,230		585,022
PE Investments	$ 8,764		10,283
Core
Segment Reporting Information [Line Items]
Number of segments \| segment	4
Net interest income (loss)	$ 27,150	18,336
Property and other income	30,632	30,064
Management fee expense	(6,516)	(9,086)
Property operating expense	(3,684)	(8,946)
Transaction, investment and servicing expense	(2,214)	(54)
Interest expense on real estate	(8,461)	(8,570)
Depreciation and amortization	(11,153)	(13,084)
Provision for loan losses	(31,499)
Impairment of operating real estate	0
Administrative expense	(4,131)	(3,638)
Unrealized gain on mortgage loans and obligations held in securitization trusts, net	(19,452)	1,029
Realized gain on mortgage loans and obligations held in securitization trusts, net		48
Other loss, net	(20,512)	(3,827)
Loss before equity in earnings of unconsolidated ventures and income taxes	(49,840)	2,272
Equity in earnings of unconsolidated ventures	14,074	18,368
Income tax benefit (expense)	(163)	1,988
Net income (loss)	(35,929)	22,628
Total Assets	6,453,172		6,369,734
Core \| Senior and MezzanineLoans and Preferred Equity
Segment Reporting Information [Line Items]
Net interest income (loss)	23,483	15,882
Property and other income	24	93
Management fee expense	0	0
Property operating expense	(1)	0
Transaction, investment and servicing expense	(398)	(276)
Interest expense on real estate	0	0
Depreciation and amortization	0	0
Provision for loan losses	(31,499)
Impairment of operating real estate	0
Administrative expense	(363)	(289)
Unrealized gain on mortgage loans and obligations held in securitization trusts, net	0	0
Realized gain on mortgage loans and obligations held in securitization trusts, net		0
Other loss, net	0	0
Loss before equity in earnings of unconsolidated ventures and income taxes	(8,754)	15,410
Equity in earnings of unconsolidated ventures	14,074	18,368
Income tax benefit (expense)	(361)	(12)
Net income (loss)	4,959	33,766
Total Assets	2,361,830		2,464,963
Core \| CRE Debt Securities
Segment Reporting Information [Line Items]
Net interest income (loss)	5,543	5,312
Property and other income	72	67
Management fee expense	0	0
Property operating expense	0	0
Transaction, investment and servicing expense	0	0
Interest expense on real estate	0	0
Depreciation and amortization	0	0
Provision for loan losses	0
Impairment of operating real estate	0
Administrative expense	(535)	(387)
Unrealized gain on mortgage loans and obligations held in securitization trusts, net	(19,906)	666
Realized gain on mortgage loans and obligations held in securitization trusts, net		48
Other loss, net	(16,336)	(4,070)
Loss before equity in earnings of unconsolidated ventures and income taxes	(31,162)	1,636
Equity in earnings of unconsolidated ventures	0	0
Income tax benefit (expense)	0	0
Net income (loss)	(31,162)	1,636
Total Assets	2,073,016		2,226,448
Core \| Net Leased Real Estate
Segment Reporting Information [Line Items]
Net interest income (loss)	0	0
Property and other income	30,531	29,904
Management fee expense	0	0
Property operating expense	(3,683)	(8,946)
Transaction, investment and servicing expense	(143)	(45)
Interest expense on real estate	(8,461)	(8,570)
Depreciation and amortization	(11,153)	(13,084)
Provision for loan losses	0
Impairment of operating real estate	0
Administrative expense	(82)	(57)
Unrealized gain on mortgage loans and obligations held in securitization trusts, net	0	0
Realized gain on mortgage loans and obligations held in securitization trusts, net		0
Other loss, net	(4,084)	235
Loss before equity in earnings of unconsolidated ventures and income taxes	2,925	(563)
Equity in earnings of unconsolidated ventures	0	0
Income tax benefit (expense)	198	2,382
Net income (loss)	3,123	1,819
Total Assets	1,119,067		1,181,609
Core \| Corporate
Segment Reporting Information [Line Items]
Net interest income (loss)	(1,876)	(2,858)
Property and other income	5	0
Management fee expense	(6,516)	(9,086)
Property operating expense	0	0
Transaction, investment and servicing expense	(1,673)	267
Interest expense on real estate	0	0
Depreciation and amortization	0	0
Provision for loan losses	0
Impairment of operating real estate	0
Administrative expense	(3,151)	(2,905)
Unrealized gain on mortgage loans and obligations held in securitization trusts, net	454	363
Realized gain on mortgage loans and obligations held in securitization trusts, net		0
Other loss, net	(92)	8
Loss before equity in earnings of unconsolidated ventures and income taxes	(12,849)	(14,211)
Equity in earnings of unconsolidated ventures	0	0
Income tax benefit (expense)	0	(382)
Net income (loss)	(12,849)	(14,593)
Accretion (amortization) of discounts and premiums, investments	500	400
Total Assets	899,259		496,714
Non-Core \| Legacy, Non-Strategic Portfolio
Segment Reporting Information [Line Items]
Net interest income (loss)	706	3,622
Property and other income	31,290	33,247
Management fee expense	(1,430)	(2,272)
Property operating expense	(18,847)	(19,234)
Transaction, investment and servicing expense	(920)	(475)
Interest expense on real estate	(4,617)	(5,037)
Depreciation and amortization	(6,823)	(14,578)
Provision for loan losses	(38,433)
Impairment of operating real estate	(4,126)
Administrative expense	(2,907)	(3,015)
Unrealized gain on mortgage loans and obligations held in securitization trusts, net	0	0
Realized gain on mortgage loans and obligations held in securitization trusts, net		0
Other loss, net	350	(1,252)
Loss before equity in earnings of unconsolidated ventures and income taxes	(45,757)	(8,994)
Equity in earnings of unconsolidated ventures	3,093	2,942
Income tax benefit (expense)	(1,548)	(1,619)
Net income (loss)	(44,212)	$ (7,671)
Total Assets	$ 740,416		$ 1,044,572

Segment Reporting - Total Income and Long-lived Assets by Geography (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Segment Reporting Information [Line Items]
Total income by geography	$ 145,748	$ 161,506
Long-lived assets by geography	1,325,495		$ 1,597,558
United States
Segment Reporting Information [Line Items]
Total income by geography	124,953	148,790
Long-lived assets by geography	1,062,789		1,282,189
Europe
Segment Reporting Information [Line Items]
Total income by geography	20,795	12,681
Long-lived assets by geography	262,706		$ 315,369
Other
Segment Reporting Information [Line Items]
Total income by geography	$ 0	$ 35

Earnings Per Share (Details) $ / shares in Units, $ in Thousands		3 Months Ended
	Jan. 31, 2018 shares	Mar. 31, 2020 USD ($) $ / shares shares	Mar. 31, 2019 USD ($) $ / shares shares	Dec. 31, 2019 shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net income (loss)		$ (80,141)	$ 14,957
Net (income) loss attributable to noncontrolling interests:
Investment entities		(523)	298
Operating Partnership		1,892	(347)
Net income (loss) attributable to Colony Credit Real Estate, Inc. common stockholders		(78,772)	14,908
Numerator:
Net income allocated to participating securities (nonvested shares)		(322)	(466)
Net income (loss) attributable to common stockholders		$ (79,094)	$ 14,442
Denominator:
Weighted average shares outstanding - basic and diluted (in shares) \| shares		128,487,000	127,943,000
Net income (loss) per common share - basic and diluted (in dollars per share) \| $ / shares		$ (0.62)	$ 0.11
Antidilutive securities excluded from computation of earnings per share (in shares) \| shares		3,075,623
Common stock, shares outstanding (in shares) \| shares		128,366,427		128,538,703
Conversion of stock, conversion ratio	1
Option conversion ratio		1
Class B-3
Denominator:
Common stock, shares outstanding (in shares) \| shares	44,400,000

Subsequent Events (Details)

1 Months Ended

3 Months Ended

May 08, 2020

USD ($)

loan

Apr. 30, 2020

USD ($)

Mar. 31, 2020

USD ($)

Mar. 31, 2019

USD ($)

May 07, 2020

USD ($)

May 06, 2020

USD ($)

Dec. 31, 2019

USD ($)

Loans and preferred equity held for investment, net

^[1]

$ 2,351,278,000

$ 2,576,332,000

Cash collateral to counterparties for its derivative contracts

14,500,000

Cash collateral for the derivative contracts

33,400,000

3,257,619,000

69,932,000

$ 0

Subsequent event

Cash collateral to counterparties for its derivative contracts

$ 15,900,000

Cash collateral for the derivative contracts

$ 17,400,000

Legacy, Non-Strategic Portfolio | Subsequent event

Number of loans sold | loan

Proceeds from sale of joint ventures

$ 23,500,000

Forecast | Subsequent event

Gains from real estate and real estate joint ventures

$ 6,800,000

Designated | Interest Rate Swap | Subsequent event

Loss on derivative

$ 16,400,000

Credit facilities

Credit facilities | Bank credit facility

1,260,419,000

Minimum net worth required for compliance

2,100,000,000

Maximum borrowing capacity

560,000,000

Credit facilities | Bank credit facility | Subsequent event

Minimum net worth required for compliance

$ 1,500,000,000

Maximum borrowing capacity

450,000,000.0

Line of credit facility, fair value of amount outstanding

$ 299,000,000.0

Non-subordinated CMBS | Credit facilities

Non-subordinated CMBS | Credit facilities | Subsequent event

172,800,000

Debt instrument, advance, interest rate (in percentage)

62.00%

Repayments of debt

$ 73,900,000

Debt instrument, bond specific basic before further margin calls, additional loss (in percentage)

15.00%

LA hospitality, retail, and condominium | Mezzanine loans and preferred equity Interest

$ 123,500,000

Loans and preferred equity held for investment, net

189,000,000.0

LA hospitality, retail, and condominium | Mezzanine loans and preferred equity Interest | Subsequent event

Senior notes, protective advance, pro-rata share

$ 12,900,000

Senior notes, protective advance

34,700,000

Senior notes, allowance to fund

2,500,000

Senior note, shortfall to protective advance

$ 5,100,000

Real estate property | Legacy, Non-Strategic Portfolio | Subsequent event

Number of loans sold | loan

Proceeds from sale of joint ventures

$ 1,000,000.0

Gains from real estate and real estate joint ventures

$ (100,000)

COVID-19