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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________________________ 
FORM 10-Q
__________________________________ 
(Mark One)
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended March 31, 2022
OR
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from                     to                    
Commission File Number: 001-34452
__________________________________ 
Apollo Commercial Real Estate Finance, Inc.
(Exact name of registrant as specified in its charter)
__________________________________ 
Maryland 27-0467113
(State or other jurisdiction of
incorporation or organization)
 (I.R.S. Employer
Identification No.)
Apollo Commercial Real Estate Finance, Inc.
c/o Apollo Global Management, Inc.
9 West 57th Street, 43rd Floor,
New York, New York 10019
(Address of principal executive offices) (Zip Code)
(212) 515–3200
(Registrant’s telephone number, including area code)
__________________________________ 
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Common Stock, $0.01 par valueARINew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer   Accelerated filer 
Non-accelerated filer   Smaller reporting company 
 Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  
As of April 22, 2022, there were 140,590,843 shares, par value $0.01, of the registrant’s common stock issued and outstanding.




Table of Contents
 

3


PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Apollo Commercial Real Estate Finance, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands—except share data)
March 31, 2022December 31, 2021
Assets:
Cash and cash equivalents$215,749 $343,106 
Commercial mortgage loans, net(1)(2)
7,586,554 7,012,312 
Subordinate loans and other lending assets, net(2)
763,488 844,948 
Assets related to real estate owned, held for sale157,084  
Other assets52,892 47,753 
Derivative assets, net41,251 16,788 
Real estate owned, net (net of $2,645 accumulated depreciation in 2021)
 151,788 
Total Assets$8,817,018 $8,416,695 
Liabilities and Stockholders' Equity
Liabilities:
Secured debt arrangements, net (net of deferred financing costs of $10,705 and $9,062 in 2022 and 2021, respectively)
$4,571,314 $4,150,268 
Senior secured term loans, net (net of deferred financing costs of $11,959 and $12,734 in 2022 and 2021, respectively)
767,297 768,325 
Senior secured notes, net (net of deferred financing costs of $5,753 and $5,949 in 2022 and 2021, respectively)
494,247 494,051 
Convertible senior notes, net573,667 569,979 
Accounts payable, accrued expenses and other liabilities(3)
118,133 102,609 
Participations sold26,276 27,064 
Payable to related party9,354 9,773 
Liabilities related to real estate owned, held for sale5,712  
Total Liabilities6,566,000 6,122,069 
Commitments and Contingencies (see Note 17)
Stockholders’ Equity:
Preferred stock, $0.01 par value, 50,000,000 shares authorized, Series B-1, 6,770,393 shares issued and outstanding ($169,260 liquidation preference) in 2022 and 2021 (see Note 16)
68 68 
Common stock, $0.01 par value, 450,000,000 shares authorized, 140,541,409 and 139,894,060 shares issued and outstanding in 2022 and 2021, respectively
1,405 1,399 
Additional paid-in-capital2,703,354 2,721,042 
Accumulated deficit(453,809)(427,883)
Total Stockholders’ Equity2,251,018 2,294,626 
Total Liabilities and Stockholders’ Equity$8,817,018 $8,416,695 
———————
(1) Includes $6,501,562 and $5,957,707 pledged as collateral under secured debt arrangements in 2022 and 2021, respectively.
(2) Net of $196,377 and $178,588 CECL Allowances in 2022 and 2021, respectively, comprised of $175,000 and $145,000 Specific CECL Allowance and $21,377 and $33,588 General CECL Allowance, respectively.
(3) Includes $3,928 and $3,106 of General CECL Allowance related to unfunded commitments on commercial mortgage loans, subordinate loans and other lending assets, net in 2022 and 2021, respectively.

See notes to unaudited condensed consolidated financial statements.
4


Apollo Commercial Real Estate Finance, Inc. and Subsidiaries
Condensed Consolidated Statement of Operations (Unaudited)
(in thousands—except share and per share data)
 
Three months ended March 31,
 20222021
Net interest income:
Interest income from commercial mortgage loans$84,424 $75,356 
Interest income from subordinate loans and other lending assets 15,835 31,459 
Interest expense(45,118)(35,664)
Net interest income$55,141 $71,151 
Revenue from real estate owned operations9,040  
Total net revenue$64,181 $71,151 
Operating expenses:
General and administrative expenses (includes equity-based compensation of $4,698 and $4,387 in 2022 and 2021, respectively)
$(7,187)$(6,940)
Management fees to related party(9,354)(9,364)
Operating expenses related to real estate owned(9,652) 
Depreciation and amortization on real estate owned(704) 
Total operating expenses$(26,897)$(16,304)
Other income$ $92 
Reversal of (provision for) loan losses, net(1)
(18,611)1,238 
Realized losses and impairments on real estate owned (550)
Foreign currency translation loss(32,518)(7,449)
Gain on foreign currency forward contracts (includes unrealized gains of $18,142 and $10,502 in 2022 and 2021, respectively)
22,762 9,800 
Unrealized gain on interest rate hedging instruments 6,321 357 
Net income$15,238 $58,335 
Preferred dividends(3,068)(3,385)
Net income available to common stockholders$12,170 $54,950 
Net income per share of common stock:
Basic$0.08 $0.39 
Diluted$0.08 $0.37 
Basic weighted-average shares of common stock outstanding140,353,386 139,805,863 
Diluted weighted-average shares of common stock outstanding140,353,386 170,792,684 
Dividend declared per share of common stock$0.35 $0.35 
———————
(1) Comprised of $30,000 and $0 Specific CECL Allowance and $11,389 and $1,238 of General CECL Reversals for the three months ended March 31, 2022 and 2021, respectively.


See notes to unaudited condensed consolidated financial statements.
5


Apollo Commercial Real Estate Finance, Inc. and Subsidiaries
Condensed Consolidated Statement of Changes in Stockholders’ Equity (Unaudited)
(in thousands—except share and per share data)
 Preferred StockCommon StockAdditional
Paid-In-Capital
Accumulated
Deficit
Total
SharesParSharesPar
Balance at January 1, 20226,770,393 $68 139,894,060 $1,399 $2,721,042 $(427,883)$2,294,626 
Adoption of ASU 2020-06— — — — (15,408)11,992 (3,416)
Capital increase (decrease) related to Equity Incentive Plan— — 647,349 6 (2,280)— (2,274)
Net income— — — — — 15,238 15,238 
Dividends declared on preferred stock - $0.45 per share
— — — — — (3,068)(3,068)
Dividends declared on common stock - $0.35 per share
— — — — — (50,088)(50,088)
Balance at March 31, 20226,770,393 $68 140,541,409 $1,405 $2,703,354 $(453,809)$2,251,018 




Preferred StockCommon StockAdditional
Paid-In-Capital
Accumulated
Deficit
Total
SharesParSharesPar
Balance at January 1, 20216,770,393 $68 139,295,867 $1,393 $2,707,792 $(438,724)$2,270,529 
Capital increase related to Equity Incentive Plan— — 553,008 5 103 — 108 
Offering costs— — — — (40)— (40)
Net income— — — — — 58,335 58,335 
Dividends declared on preferred stock - $0.50 per share
— — — — — (3,385)(3,385)
Dividends declared on common stock - $0.35 per share
— — — — — (49,794)(49,794)
Balance at March 31, 20216,770,393 $68 139,848,875 $1,398 $2,707,855 $(433,568)$2,275,753 



See notes to unaudited condensed consolidated financial statements.
6


Apollo Commercial Real Estate Finance, Inc. and Subsidiaries
Condensed Consolidated Statement of Cash Flows (Unaudited)
(in thousands)
 For the three months ended March 31,
 20222021
Cash flows provided by operating activities:
     Net income$15,238 $58,335 
Adjustments to reconcile net income to net cash provided by operating activities:
     Amortization of discount/premium and PIK(14,333)(24,671)
     Amortization of deferred financing costs2,856 3,196 
     Equity-based compensation4,698 4,387 
     Provision for (reversal of) loan losses, net18,611 (1,238)
     Foreign currency loss24,212 7,479 
     Gain on derivative instruments(24,463)(10,859)
     Depreciation and amortization on real estate owned704  
     Realized losses and impairments on investments and real estate owned 550 
     Changes in operating assets and liabilities:
          Proceeds received from PIK interest20,141 6,000 
          Other assets(1,830)1,238 
          Accounts payable, accrued expenses and other liabilities4,245 (274)
          Payable to related party(419)(233)
Net cash provided by operating activities49,660 43,910 
Cash flows used in investing activities:
    New funding of commercial mortgage loans(1,193,945)(417,161)
    Add-on funding of commercial mortgage loans(116,789)(77,499)
    Add-on funding of subordinate loans and other lending assets(29,099)(41,317)
    Proceeds received from the repayment and sale of commercial mortgage loans637,512 200,077 
    Proceeds received from the repayment of subordinate loans and other lending assets90,071 30,470 
    Origination and exit fees received on commercial mortgage loans, and subordinate loans and other lending assets, net18,073 6,301 
    Capital expenditures on real estate assets(48) 
    Increase in collateral related to derivative contracts, net16,370 430 
Net cash used in investing activities(577,855)(298,699)
Cash flows provided by financing activities:
     Payment of offering costs (40)
     Proceeds from secured debt arrangements1,012,730 322,234 
     Repayments of secured debt arrangements(542,213)(331,613)
     Repayments of senior secured term loan principal(2,000)(1,250)
     Proceeds from issuance of senior secured term loan 297,000 
     Payment of deferred financing costs(3,528)(5,369)
     Withholding tax payment upon RSU delivery(6,972)(4,279)
     Dividends on common stock(50,270)(49,947)
     Dividends on preferred stock(3,068)(3,385)
Net cash provided by financing activities404,679 223,351 
Net decrease in cash and cash equivalents, including cash classified within assets related to real estate owned, held for sale(123,516)(31,438)
Less increase in cash classified within assets related to real estate owned, held for sale(3,841) 
Net decrease in cash and cash equivalents(127,357)(31,438)
Cash and cash equivalents, beginning of period343,106 325,498 
Cash and cash equivalents, end of period$215,749 $294,060 
Supplemental disclosure of cash flow information:
     Interest paid$35,185 $36,494 
Supplemental disclosure of non-cash financing activities:
    Dividend declared, not yet paid$53,156 $52,615 
    Change in participation sold$(788)$15,735 
    Loan proceeds held by servicer$5,097 $1,550 
    Deferred financing costs, not yet paid$ $2,596 
Transfer of assets to assets related to real estate owned, held for sale$153,243 $ 
Transfer of liabilities to liabilities related to real estate owned, held for sale$5,712 $ 

See notes to unaudited condensed consolidated financial statements.
7


Apollo Commercial Real Estate Finance, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)
Note 1 – Organization
Apollo Commercial Real Estate Finance, Inc. (together with its consolidated subsidiaries, is referred to throughout this report as the "Company," "ARI," "we," "us" and "our") is a corporation that has elected to be taxed as a real estate investment trust ("REIT") for U.S. federal income tax purposes and primarily originates, acquires, invests in and manages performing commercial first mortgage loans, subordinate financings, and other commercial real estate related debt investments. These asset classes are referred to as our target assets.
We were formed in Maryland on June 29, 2009, commenced operations on September 29, 2009 and are externally managed and advised by ACREFI Management, LLC (the "Manager"), an indirect subsidiary of Apollo Global Management, Inc. (together with its subsidiaries, "Apollo").
We elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, commencing with the taxable year ended December 31, 2009. To maintain our tax qualification as a REIT, we are required to distribute at least 90% of our taxable income, excluding net capital gains, to stockholders and meet certain other asset, income, and ownership tests.
Note 2 – Summary of Significant Accounting Policies
Basis of Presentation
The accompanying condensed consolidated financial statements include our accounts and those of our consolidated subsidiaries. All intercompany amounts have been eliminated. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Our most significant estimates include current expected credit losses. Actual results could differ from those estimates.
These unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to
Form 10-Q and should be read in conjunction with the consolidated financial statements and notes thereto included in our
Annual Report on Form 10-K for the year ended December 31, 2021 ("Annual Report"), as filed with the Securities and
Exchange Commission (the "SEC"). In the opinion of management, all adjustments (consisting only of normal recurring
adjustments) necessary to present fairly our financial position, results of operations and cash flows have been included. Our
results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected for
the full year or any other future period.
We currently operate in one reporting segment.
Risks and Uncertainties
During the first quarter of 2020, there was a global outbreak of a novel coronavirus ("COVID-19"), which was declared by the World Health Organization as a pandemic. The ongoing COVID-19 pandemic in many countries continues to adversely impact global economic activity and has contributed to significant volatility in financial markets. In response to COVID-19, the United States and numerous other countries and organizations have implemented a variety of actions to mobilize efforts to mitigate the ongoing and expected impact. Although more normalized activities have resumed and there has been improvement due to global and domestic vaccination efforts, we are not in a position to estimate the ultimate impact COVID-19 and its variants will have on our business and the economy as a whole. Due to various uncertainties, including the ultimate geographic spread of the virus, the rise of new variants that may occur, the severity of such new variants, the duration of the pandemic, and actions that may be taken by governmental authorities, further business risks could arise. We believe the estimates used in preparing our financial statements and related footnotes are reasonable and supportable based on the best information available to us as of March 31, 2022. The uncertainty surrounding COVID-19 and its variants may materially impact the accuracy of the estimates and assumptions used in the financial statements and related footnotes and, as a result, actual results may vary significantly from estimates.

Recent Accounting Pronouncements
In March 2020, the FASB issued ASU 2020-04 "Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting" ("ASU 2020-04"). ASU 2020-04 provides optional expedients and exceptions for applying GAAP to debt instruments, derivatives, and other contracts that reference London Interbank Offered Rate ("LIBOR") or other reference rates expected to be discontinued as a result of reference rate reform. This guidance is optional
8


and may be elected through December 31, 2022 using a prospective application on all eligible contract modifications. We have loan agreements, debt agreements, and an interest rate cap that incorporate LIBOR as a referenced interest rate. It is difficult to predict what effect, if any, the phase-out of LIBOR and the use of alternative benchmarks may have on our business or on the overall financial markets. During the fourth quarter of 2021, we adopted optional expedients per ASU 2020-04 for certain of our commercial mortgage loans and debt agreements denominated in British Pound Sterling ("GBP") and Euro ("EUR") with contracts that reference GBP LIBOR and EUR LIBOR, respectively. As prescribed by the optional expedients within ASU 2020-04, we have accounted for applicable modified contracts that incorporate alternative benchmarks as if they are not substantially different. We will continue to evaluate the possible adoption of any such expedients or exceptions for certain of our commercial mortgage loans and debt agreements denominated in US dollars.
In March 2022, the FASB issued ASU 2022-02 "Financial InstrumentsCredit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures" ("ASU 2022-02"). The intention of ASU 2022-02 is to simplify the guidance surrounding loan modifications and restructurings and to eliminate the accounting guidance related to TDR. The new guidance deviates from TDR guidance as disclosures are now based on whether a modification or restructuring with a borrower experiencing financial difficulty results in principal forgiveness, an interest rate reduction, a significant payment delay or term extension as opposed to simply a concession. The new guidance requires disclosure by class of financing receivables, of the types of modifications, the financial effects of those modifications and the performance of those modified receivables in the last twelve months. As it relates to ASC 326-20 we are now allowed to use any acceptable method to determine credit losses as a result of modification or restructuring with a borrower experiencing financial difficulty. ASU 2022-02 also requires disclosure of gross write-offs recorded in the current period, on a year-to-date basis, by year of origination in the vintage disclosures. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022. Entities are able to early adopt these amendments and have the ability to early adopt the TDR enhancements separately from the vintage disclosures. We have not yet adopted this ASU and will continue to evaluate the effects of adoption.
Note 3 – Fair Value Disclosure
GAAP establishes a hierarchy of valuation techniques based on the observability of the inputs utilized in measuring financial instruments at fair value. Market-based or observable inputs are the preferred source of values, followed by valuation models using management's assumptions in the absence of market-based or observable inputs. The three levels of the hierarchy as noted in ASC 820, "Fair Value Measurements and Disclosures" are described below:
Level I — Quoted prices in active markets for identical assets or liabilities.
Level II — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants would use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others.
Level III — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used.
While we anticipate that our valuation methods are appropriate and consistent with valuation methods used by other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. We use inputs that are current as of the measurement date, which may include periods of market dislocation, during which price transparency may be reduced.
The fair values of foreign exchange ("Fx") forwards are determined by comparing the contracted forward exchange rate to the current market exchange rate. The current market exchange rates are determined by using market spot rates, forward rates and interest rate curves for the underlying countries. Our Fx forwards are classified as Level II in the fair value hierarchy.
The fair value of our interest rate cap is determined by using the market standard methodology of discounting the future expected cash receipts that would occur if variable interest rates rise above the strike rate of the interest rate cap. The variable interest rates used in the calculation of projected receipts on the interest rate cap are based on a third party expert's expectation of future interest rates derived from observable market interest rate curves and volatilities. Our interest rate cap is classified as Level II in the fair value hierarchy.
9


The following table summarizes the levels in the fair value hierarchy into which our assets and liabilities with recurring fair value measurements were categorized as of March 31, 2022 and December 31, 2021 ($ in thousands): 
 Fair Value as of March 31, 2022Fair Value as of December 31, 2021
 Level ILevel IILevel IIITotalLevel ILevel IILevel IIITotal
Recurring fair value measurements:
Foreign currency forward, net$ $33,482 $ $33,482 $ $15,340 $ $15,340 
Interest rate cap asset 7,769  7,769  1,448  1,448 
Total financial instruments$ $41,251 $ $41,251 $ $16,788 $ $16,788 
Note 4 – Commercial Mortgage Loans, Subordinate Loans and Other Lending Assets, Net
Our loan portfolio was comprised of the following at March 31, 2022 and December 31, 2021 ($ in thousands):
Loan TypeMarch 31, 2022December 31, 2021
Commercial mortgage loans, net(1)
$7,586,554 $7,012,312 
Subordinate loans and other lending assets, net 763,488 844,948 
Carrying value, net$8,350,042 $7,857,260 
  ———————
(1)Includes $85.5 million and $97.8 million in 2022 and 2021, respectively, of contiguous financing structured as subordinate loans.

Our loan portfolio consisted of 98% floating rate loans, based on amortized cost, as of each of March 31, 2022 and December 31, 2021.
Activity relating to our loan portfolio for the three months ended March 31, 2022 was as follows ($ in thousands):
Principal
Balance
Deferred Fees/Other Items (1)
Specific CECL Allowance
Carrying Value, Net(2)
December 31, 2021$8,072,377 $(36,529)$(145,000)$7,890,848 
New funding of loans1,196,111 — — 1,196,111 
Add-on loan fundings(3)
145,888 — — 145,888 
Loan repayments and sales(725,508)— — (725,508)
Gain (loss) on foreign currency translation(101,297)1,036 — (100,261)
Specific CECL Allowance— — (30,000)(30,000)
Deferred fees and other items— (20,461)— (20,461)
PIK interest and amortization of fees7,083 7,719 — 14,802 
March 31, 2022$8,594,654 $(48,235)$(175,000)$8,371,419 
General CECL Allowance(4)
(21,377)
Carrying value, net$8,350,042 
———————
(1)Other items primarily consist of purchase discounts or premiums, cost recovery interest, exit fees, deferred origination expenses, and the activity of unconsolidated joint ventures.
(2)December 31, 2021 carrying value excludes General CECL Allowance.
(3)Represents fundings committed prior to 2022.
(4)$3.9 million of the General CECL Allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable, accrued expenses and other liabilities in our condensed consolidated balance sheet.


The following table details overall statistics for our loan portfolio at the dates indicated ($ in thousands):
10


March 31, 2022December 31, 2021
Number of loans 67 67 
Principal balance$8,594,654 $8,072,377 
Carrying value, net$8,350,042 $7,857,260 
Unfunded loan commitments(1)
$1,800,235 $1,357,122 
Weighted-average cash coupon(2)
4.5 %4.5 %
Weighted-average remaining fully-extended term(3)
3.0 years2.9 years
Weighted-average expected term(4)
2.0 years2.3 years
———————
(1)Unfunded loan commitments are funded to finance construction costs, tenant improvements, leasing commissions, or carrying costs. These future commitments are funded over the term of each loan, subject in certain cases to an expiration date.
(2)For floating rate loans, based on applicable benchmark rates as of the specified dates. For loans placed on non-accrual or cost recovery the interest rate used in calculating weighted-average cash coupon is 0%.
(3)Assumes all extension options are exercised.
(4)Expected term represents our estimated timing of repayments as of the specified dates. Excludes risk-rated 5 loans.

Property Type
The table below details the property type of the properties securing the loans in our portfolio at the dates indicated ($ in thousands):
March 31, 2022December 31, 2021
Property TypeCarrying
Value
% of
Portfolio
(1)
Carrying
Value
% of
Portfolio(1)
Office$1,980,780 23.7 %$1,700,779 21.6 %
Hotel1,949,106 23.3 1,875,439 23.8 
Residential-for-sale896,714 10.7 956,617 12.1 
Healthcare637,570 7.6 316,321 4.0 
Retail Center508,117 6.1 414,740 5.3 
Residential-for-rent470,861 5.6 477,569 6.1 
Mixed Use417,967 5.0 269,839 3.4 
Industrial364,953 4.4 377,068 4.8 
Urban Retail358,221 4.3 711,592 9.0 
Other(2)
787,130 9.3 790,884 9.9 
Total$8,371,419 100.0 %$7,890,848 100.0 %
General CECL Allowance(3)
(21,377)(33,588)
Carrying value, net$8,350,042 $7,857,260 

(1)Percentage of portfolio calculations are made prior to consideration of General CECL Allowance.
(2)Other property types include parking garages (3.1%), caravan parks (2.6%), multifamily development (2.1%) and urban predevelopment (1.5%) in 2022, and parking garages (3.3%), caravan parks (2.8%), multifamily development (2.2%), and urban predevelopment (1.6%) in 2021.
(3)$3.9 million and $3.1 million of the General CECL Allowance for 2022 and 2021, respectively, is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable, accrued expenses and other liabilities in our condensed consolidated balance sheet.

Geography
The table below details the geographic distribution of the properties securing the loans in our portfolio at the dates indicated ($ in thousands):
March 31, 2022December 31, 2021
Geographic LocationCarrying
Value
% of
Portfolio
(1)
Carrying
Value
% of
Portfolio(1)
New York City$2,295,383 27.4 %$2,000,661 25.4 %
United Kingdom1,989,250 23.8 2,297,286 29.1 
11


Other Europe(2)
1,494,435 17.9 1,295,870 16.4 
Southeast769,205 9.2 708,920 9.0 
Midwest681,237 8.1 689,274 8.7 
West341,569 4.1 356,097 4.5 
Other(3)
800,340 9.5 542,740 6.9 
Total$8,371,419 100.0 %$7,890,848 100.0 %
General CECL Allowance(4)
(21,377)(33,588)
Carrying value, net$8,350,042 $7,857,260 

(1)Percentage of portfolio calculations are made prior to consideration of General CECL Allowance.
(2)Other Europe includes Germany (5.6%), Italy (4.3%), Spain (3.9%), Sweden (3.3%), and Ireland (0.8%) in 2022 and Germany (6.1%), Sweden (3.6%), Spain (3.3%), Italy (2.6%), and Ireland (0.8%) in 2021.
(3)Other includes Northeast (5.9%), Southwest (1.9%), Mid-Atlantic (1.4%) and Other (0.3%) in 2022 and Southwest (3.5%), Northeast (1.5%), Mid-Atlantic (1.6%), and Other (0.3%) in 2021.
(4)$3.9 million and $3.1 million of the General CECL Allowance for 2022 and 2021, respectively, is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable, accrued expenses and other liabilities in our condensed consolidated balance sheet.

Risk Rating
We assess the risk factors of each loan and assign a risk rating based on a variety of factors, including, without limitation, loan to value ("LTV") ratio, debt yield, property type, geographic and local market dynamics, physical condition, cash flow volatility, leasing and tenant profile, loan structure and exit plan, and project sponsorship. This review is performed quarterly. Based on a 5-point scale, our loans are rated "1" through "5," from less risk to greater risk, which ratings are defined as follows:

    1.    Very low risk
    2.    Low risk
    3. Moderate/average risk
    4. High risk/potential for loss: a loan that has a risk of realizing a principal loss
    5. Impaired/loss likely: a loan that has a high risk of realizing principal loss, has incurred principal loss or an impairment has been recorded

The following tables allocate the carrying value of our loan portfolio based on our internal risk ratings and date of origination at the dates indicated ($ in thousands):
March 31, 2022
Year Originated
Risk RatingNumber of LoansTotal% of Portfolio20222021202020192018Prior
1 $  %$ $ $ $ $ $ 
21 32,000 0.4 %