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IFCN IMH Financial

We are a real estate investment and finance company. We focus on investments in commercial, hospitality, industrial and residential real estate and mortgages secured by those assets. The Company seeks opportunities to invest in real estate-related platforms and projects in partnership with other experienced real estate investment firms, and to sponsor and co-invest in real estate mortgages and other real estate-based investment vehicles.

Company profile

Ticker
IFCN
Website
Employees
Incorporated
Location
Fiscal year end
Industry (SIC)
Former names
IMH Secured Loan Fund, LLC
SEC CIK
Subsidiaries
AZ-Havasu Golden Valley, LLC • AZ-Havasu Kingman, LLC • AZ-Havasu SN 67, LLC • Heber 20, LLC • IMH HI LLC • IMH Holdings, LLC • IMH Holdings • IMH NM LLC • IMH Special Asset NT 107, LLC • IMH Special Asset NT 139, LLC ...

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

15 May 20
22 Oct 21
31 Dec 21
Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
29 Jun 20 Fishleder Andrew Voting Common Stock, par value $0.01 per share Grant Acquire A No No 0 15,645 0 76,102
29 Jun 20 Feuerstein Leigh Voting Common Stock, par value $0.01 per share Grant Acquire A No No 0 15,645 0 75,000
29 Jun 20 Wittman Lori Voting Common Stock, par value $0.01 per share Grant Acquire A No No 0 15,645 0 75,000
29 Jun 20 Racy Michael M. Voting Common Stock, par value $0.01 per share Grant Acquire A No No 0 15,645 0 75,000

Data for the last complete 13F reporting period. To see the most recent changes to ownership, click the ownership history button above.

13F holders
Current Prev Q Change
Total holders 1 1
Opened positions 0 1 EXIT
Closed positions 0 0
Increased positions 0 0
Reduced positions 0 0
13F shares
Current Prev Q Change
Total value 0 0
Total shares 100 100
Total puts 0 0
Total calls 0 0
Total put/call ratio
Largest owners
Shares Value Change
JPM JPMorgan Chase & Co. 100 $0 0.0%
Largest transactions
Shares Bought/sold Change
JPM JPMorgan Chase & Co. 100 0 0.0%

Financial report summary

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Risks
  • Risks Related to Our Business Strategy and Our Operations:
  • We have continued to record losses as a result of limited income-producing assets, significant operating and overhead costs, significant interest and dividend costs, provisions for credit losses, and impairment losses which may continue to harm our results of operations and raise substantial doubt about our ability to continue as a going concern.
  • Holders of our Series B Preferred Stock have substantial approval rights over our operations. Their interests may not coincide with holders of our Common Stock and they may make decisions with which we disagree.
  • If we are unable to sell our existing assets, or are only able to do so at a loss, we may be unable to implement our investment strategy in the time-frame sought or at all.
  • If we do not resume our mortgage investing activities or investing activities in a meaningful manner, we will not be able to grow our business and our results of operations and financial condition will be harmed.
  • Our access to public capital markets and private sources of financing has been limited and, thus, our ability to make investments in our target assets has been limited.
  • Our business model and investment strategies involve substantial risk and may not be successful.
  • We are subject to the business, financial, and operating risks common to the hotel and hospitality industries, which could reduce our revenues and limit opportunities for growth.
  • Our operating results could fluctuate to the extent that our business relies on leisure travel and corporate events.
  • We are required to fund certain amounts for the Hotel Fund if the hotel does not achieve specified levels of operating profit and cash flows.
  • We anticipate that a portion of our portfolio will continue to include non-performing and distressed commercial real estate mortgage loans, or loans that may become non-performing and distressed which are subject to increased risks relative to performing mortgage loans.
  • We may continue to foreclose on the remaining loans in our portfolio, which could harm our results of operations and financial condition.
  • If our exposure to a particular borrower or borrower group increases, the failure by that borrower or borrower group to perform on its loan obligations could harm our results of operations and financial condition.
  • If we are unable to properly analyze potential investment opportunities for our assets, we may incur losses that could further impair our financial condition and results of operations.
  • We have limited personnel with experience in developing real estate and we may not be able to solely manage the real estate we acquire or foreclose upon or develop the underlying projects in a timely or cost-effective manner, or at all, which could harm our financial condition and results of operations.
  • Acquiring ownership of property, through foreclosure or otherwise, subjects us to the various risks of owning real property and we could incur unexpected costs and expenses, which could harm our business.
  • The supply of commercial mortgage loans available at significant discounts will likely decrease as the economy improves, which could prevent us from implementing our business strategies or maximizing our returns on such investments.
  • A secondary market for our loans or other assets we acquire may not develop, in which case we may not be able to diversify our assets in response to changes in economic and other conditions, and we may be forced to bear the risk of deteriorating real estate markets, which could increase borrower defaults on our loans and cause us to experience losses.
  • We may lack control over certain of our commercial mortgage loans and other investments, which may result in dispositions of these investments that are inconsistent with our economic, business, and other interests and goals.
  • Short-term loans that we may originate or acquire may involve a greater risk of loss than traditional investment-grade mortgage loans with fully insured borrowers, which could result in greater losses.
  • The subordinated loan assets that we may acquire, which involve greater risks of loss than senior loans secured by income-producing properties, could result in losses that could harm our results of operations and financial condition.
  • Our due diligence may not reveal all of a borrower’s assets or liabilities or other investment risks or weaknesses in a business which could result in loan losses.
  • Legislative and regulatory initiatives could harm our business.
  • Our business is subject to regulation by several government agencies and a disciplinary or civil action that occurs as a result of an actual or alleged violation of any rules or regulations to which we are subject could harm our business.
  • Our prior or future loan agreements have contained or may contain restrictive covenants relating to our operations that could materially adversely affect our business, results of operations, and financial condition. A breach of any of these restrictive covenants that results in an event of default under the applicable loan agreement could result in, among other things, accelerated maturity of the applicable loan, early redemption of our Series B Preferred Shares, and other ramifications that could be detrimental to our financial position and liquidity.
  • Any borrowing by us will increase our risk, which may reduce the return on our assets, reduce cash available for distribution to our stockholders, and increase losses.
  • Any repurchase agreements and bank credit facilities into which we may enter in the future to finance our operations may require us to provide additional collateral or pay down debt which could have the effect of reducing the capital that might otherwise be available to be used to fund our operations or expand our business.
  • Our loans may contain restrictive covenants relating to our operations which could harm our business, results of operations, and financial condition.
  • We have experienced defaults on our commercial mortgage loan assets and expect to experience such defaults in the future, which may harm our business.
  • If commercial property borrowers are unable to generate net income from operating the property, we may experience losses on those loans.
  • We rely on the value of our real estate collateral to help protect us from incurring losses on our commercial mortgage loans, and the realizable value of that real estate collateral is subject to appraisal errors and events beyond our control.
  • Our underwriting standards and procedures may not adequately protect us from loan defaults, which could harm our business.
  • Guarantors of our loans may not have sufficient assets to support their guarantees, which, in the event of a loan default where the realizable value of the underlying collateral is insufficient to fully amortize our loan.
  • We may experience a further decline in the fair value of our assets, which could harm our results of operations and our financial condition.
  • Many of our assets are recorded at the lower of cost or fair value assessments, and as a result, there may be uncertainty as to the value of these assets.
  • Competition for buyers of real estate that we own, or for permanent take-out financing for our borrowers, places severe pressure on asset values, and we may not be able to realize the full value of any of our assets as a result.
  • Our historical focus on originating and acquiring construction loans exposes us to risks associated with the uncertainty of completion of the underlying project, which may result in losses on those loans.
  • Risks of cost overruns and non-completion of renovation of the properties underlying rehabilitation loans may result in losses.
  • Our loans and real estate assets are concentrated geographically and a downturn in the economies or markets in which we operate could harm our asset values.
  • We may have difficulty protecting our rights as a secured lender, which could reduce the value or amount of collateral available to us upon foreclosure and harm our business.
  • If any of the real estate upon which we have foreclosed were to suffer an uninsured loss, we could lose the capital invested in such properties as well as the anticipated future cash flows from the loans secured by those properties.
  • Our development activities expose us to project cost, completion, and resale risks.
  • We may be exposed to liabilities for risks associated with the use of hazardous substances on any of our properties.
  • Risks Related to Our Relationship with JIA and its Affiliates:
  • We may have conflicts of interest with JIA and its affiliates, which could result in investment decisions that are not in the best interests of our stockholders.
  • We may be obligated to pay JIA quarterly incentive compensation even if we incur a net loss during a particular quarter.
  • JIA has a contractual as opposed to a fiduciary relationship with us and we are required to indemnify JIA against certain liabilities.
  • We may not be able to utilize our net operating loss carryforwards and built-in tax losses as anticipated, which could result in greater than anticipated tax liabilities.
  • Uncertainties in the interpretation and application of the 2017 Tax Cuts and Jobs Act could materially affect our tax obligations and effective tax rate.
  • Our decisions about raising capital may adversely affect our business and financial results. Furthermore, our growth may be limited if we are not able to raise additional capital.
  • A financial downturn, recession or other declines in the U.S. real estate market could further adversely affect our operating results and liquidity.
  • We depend on key personnel and an error in judgment or the loss of their services could harm our business.
  • Our risk management efforts may not be effective.
  • Our technology infrastructure and systems are important and any significant disruption or breach of the security of this infrastructure or these systems could have an adverse effect on our business. We also rely on technology infrastructure and systems of third parties who provide services to us and with whom we transact business.
  • Failure to prevent or detect a malicious cyber-attack on our systems and databases could result in a misappropriation of confidential information or access to highly sensitive information.
  • Conducting our business in a manner so that we are exempt from registration under the Investment Company Act may reduce our flexibility and could limit our ability to pursue certain opportunities. At the same time, failure to continue to qualify for exemption from the Investment Company Act could adversely affect us.
  • Risks Related to our Common Stock:
  • Under our Preferred Stock Certificates of Designation, we are not permitted to pay dividends on our common stock and we may not meet Delaware law requirements or have sufficient cash to pay dividends in the future.
  • A limited number of shareholders own shares of our Series B Preferred Stock that are convertible into a significant percentage of our fully-diluted Common Stock, which could have adverse consequences to other holders of our Common Stock.
  • Certain provisions of our certificate of incorporation, bylaws, debt instruments and the Delaware General Corporation Law could make it more difficult for a third-party to acquire us, even if doing so would benefit our stockholders.
  • Shares of our Common Stock are subject to certain restrictions on transfer under Article V of the Company’s Bylaws, which could restrict your ability to sell your shares in certain circumstances.
  • The ability to take action against our directors and officers is limited by our charter and bylaws and provisions of Delaware law and we may (or, in some cases, are obligated to) indemnify our current and former directors and officers against certain losses relating to their service to us.
Management Discussion
  • Cash Used In Operating Activities.
  • Cash used in operating activities was $21.8 million and $14.7 million for the years ended December 31, 2019 and 2018, respectively. Cash from operating activities includes the cash generated from hospitality income, management fees, mortgage interest and investment and other income, offset by amounts paid for operating expenses for operating properties, real estate owned, professional fees, general and administrative costs, funding of other receivables, interest on borrowings and litigation settlement payments and related costs. The increase in cash used in operating activities from 2018 to 2019 is primarily attributed to the pay down of accounts payable, accrued interest and funding of other asset purchases.
  • Cash Provided By (Used In) Investing Activities.
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