Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 11, 2021 | |
Document And Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | INPOINT COMMERCIAL REAL ESTATE INCOME, INC. | |
Entity Central Index Key | 0001690012 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity File Number | 001-40833 | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 32-0506267 | |
Entity Address, Address Line One | 2901 Butterfield Road | |
Entity Address, City or Town | Oak Brook | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60523 | |
City Area Code | 800 | |
Local Phone Number | 826-8228 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | 6.75% Series A Cumulative Redeemable Preferred Stock, par value $0.001 | |
Trading Symbol | ICR PR A | |
Security Exchange Name | NYSE | |
Class P Common Stock | ||
Document And Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 9,683,024 | |
Class T Common Stock | ||
Document And Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 400,023 | |
Class I Common Stock | ||
Document And Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 385,930 | |
Class A Common Stock | ||
Document And Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 657,963 | |
Class D Common Stock | ||
Document And Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 46,973 | |
Class S Common Stock | ||
Document And Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 0 |
CONSOLIDATED BALANCE SHEETS (un
CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 134,837 | $ 72,107 |
Commercial mortgage loans at cost | 522,342 | 441,814 |
Real estate owned, net of depreciation | 31,724 | 32,474 |
Finance lease right of use asset, net of amortization | 5,472 | 5,525 |
Deferred debt finance costs | 894 | 1,001 |
Accrued interest receivable | 1,221 | 1,168 |
Prepaid expenses and other assets | 1,946 | 902 |
Total assets | 698,436 | 554,991 |
Liabilities: | ||
Repurchase agreements—commercial mortgage loans | 343,180 | 290,699 |
Credit facility payable | 14,350 | |
Finance lease liability | 17,023 | 16,790 |
Loan fees payable | 51 | 401 |
Due to related parties | 2,225 | 2,093 |
Accrued interest payable | 320 | 292 |
Distributions payable | 1,166 | 867 |
Accrued expenses | 7,079 | 3,593 |
Total liabilities | 385,394 | 314,735 |
Stockholders’ Equity: | ||
Preferred stock,$0.001 par value, 50,000,000 shares authorized: 6.75% Series A Cumulative Redeemable Preferred Stock, $0.001 par value, 4,025,000 shares authorized, 3,500,000 and 0 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively | 4 | |
Additional paid in capital (net of offering costs of $29,146 and $24,964 at September 30, 2021 and December 31, 2020, respectively) | 362,954 | 287,498 |
Accumulated deficit | (49,927) | (47,253) |
Total stockholders’ equity | 313,042 | 240,256 |
Total liabilities and stockholders’ equity | 698,436 | 554,991 |
Class P Common Stock | ||
Stockholders’ Equity: | ||
Common stock | 10 | 10 |
Total stockholders’ equity | 10 | 10 |
Class A Common Stock | ||
Stockholders’ Equity: | ||
Common stock | 1 | 1 |
Total stockholders’ equity | 1 | 1 |
Class T Common Stock | ||
Stockholders’ Equity: | ||
Common stock | 0 | 0 |
Class S Common Stock | ||
Stockholders’ Equity: | ||
Common stock | 0 | 0 |
Class D Common Stock | ||
Stockholders’ Equity: | ||
Common stock | 0 | 0 |
Class I Common Stock | ||
Stockholders’ Equity: | ||
Common stock | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Additional paid in capital, offering costs | $ 29,146 | $ 24,964 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Class P Common Stock | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares, issued | 9,764,410 | 10,151,787 |
Common stock, shares, outstanding | 9,764,410 | 10,151,787 |
Class A Common Stock | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares, issued | 654,478 | 655,835 |
Common stock, shares, outstanding | 654,478 | 655,835 |
Class T Common Stock | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares, issued | 399,496 | 398,233 |
Common stock, shares, outstanding | 399,496 | 398,233 |
Class S Common Stock | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares, issued | 0 | 0 |
Common stock, shares, outstanding | 0 | 0 |
Class D Common Stock | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares, issued | 46,813 | 50,393 |
Common stock, shares, outstanding | 46,813 | 50,393 |
Class I Common Stock | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares, issued | 383,460 | 381,955 |
Common stock, shares, outstanding | 383,460 | 381,955 |
6.75% Series A Cumulative Redeemable Preferred Stock | ||
Preferred stock, par value | $ 0.001 | |
Preferred stock, shares authorized | 4,025,000 | |
Percentage of cumulative redeemable preferred stock | 6.75% | |
Preferred stock, shares issued | 3,500,000 | 0 |
Preferred stock, shares outstanding | 3,500,000 | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income: | ||||
Interest income | $ 7,321 | $ 7,667 | $ 20,995 | $ 26,782 |
Less: Interest expense | (2,401) | (1,983) | (6,526) | (8,628) |
Net interest income | 4,920 | 5,684 | 14,469 | 18,154 |
Revenue from real estate owned | 2,716 | 365 | 5,328 | 365 |
Total income | 7,636 | 6,049 | 19,797 | 18,519 |
Operating expenses: | ||||
Advisory fee | 771 | 1,572 | 2,245 | 3,973 |
Debt finance costs | 327 | 403 | 1,138 | 961 |
Directors compensation | 19 | 25 | 53 | 73 |
Professional service fees | 212 | 246 | 718 | 1,758 |
Real estate owned operating expenses | 3,268 | 944 | 6,880 | 944 |
Depreciation and amortization | 272 | 122 | 817 | 122 |
Other expenses | 305 | 209 | 821 | 681 |
Net operating expenses | 5,174 | 3,521 | 12,672 | 8,512 |
Other income (loss): | ||||
Reversal of (provision for) loan losses | 54 | (5,711) | ||
Realized loss on sale of commercial loan | (375) | |||
Unrealized gain (loss) in value of real estate securities | 13,404 | (5,499) | ||
Realized loss on the sale of real estate securities | (9,930) | (29,218) | ||
Total other income (loss) | 3,528 | (40,803) | ||
Net income (loss) | 2,462 | 6,056 | 7,125 | (30,796) |
Net income (loss) attributable to common stockholders | $ 2,462 | $ 6,056 | $ 7,125 | $ (30,796) |
Net income (loss) attributable to common stockholders per share basic and diluted | $ 0.22 | $ 0.52 | $ 0.62 | $ (2.67) |
Weighted average number of shares of common stock | ||||
Basic | 11,433,665 | 11,630,987 | 11,570,868 | 11,537,483 |
Diluted | 11,434,305 | 11,631,431 | 11,571,131 | 11,537,483 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands | Total | Series A Preferred Stock | Class P Common Stock | Class A Common Stock | Additional Paid in Capital | Accumulated Deficit |
Balance at Dec. 31, 2019 | $ 256,166 | $ 10 | $ 265,963 | $ (9,807) | ||
Proceeds from issuance of common stock | 24,262 | $ 1 | 24,261 | |||
Offering costs | (2,135) | (2,135) | ||||
Net income (loss) | (30,796) | (30,796) | ||||
Common stock distributions declared | (6,064) | (6,064) | ||||
Distribution reinvestment | 127 | 127 | ||||
Redemptions | (763) | (763) | ||||
Equity-based compensation | 23 | 23 | ||||
Balance at Sep. 30, 2020 | 240,820 | 10 | 1 | 287,476 | (46,667) | |
Balance at Jun. 30, 2020 | 237,530 | 10 | 1 | 287,703 | (50,184) | |
Offering costs | (235) | (235) | ||||
Net income (loss) | 6,056 | 6,056 | ||||
Common stock distributions declared | (2,539) | (2,539) | ||||
Equity-based compensation | 8 | 8 | ||||
Balance at Sep. 30, 2020 | 240,820 | 10 | 1 | 287,476 | (46,667) | |
Balance at Dec. 31, 2020 | 240,256 | 10 | 1 | 287,498 | (47,253) | |
Proceeds from issuance of common stock | 10 | 10 | ||||
Proceeds from issuance of preferred stock | 87,500 | $ 4 | 87,496 | |||
Offering costs | (4,182) | (4,182) | ||||
Net income (loss) | 7,125 | 7,125 | ||||
Common stock distributions declared | (9,799) | (9,799) | ||||
Distribution reinvestment | 421 | 421 | ||||
Redemptions | (8,313) | (8,313) | ||||
Equity-based compensation | 24 | 24 | ||||
Balance at Sep. 30, 2021 | 313,042 | 4 | 10 | 1 | 362,954 | (49,927) |
Balance at Jun. 30, 2021 | 238,301 | 10 | 1 | 287,150 | (48,860) | |
Proceeds from issuance of common stock | 8 | 8 | ||||
Proceeds from issuance of preferred stock | 87,500 | 4 | 87,496 | |||
Offering costs | (3,736) | (3,736) | ||||
Net income (loss) | 2,462 | 2,462 | ||||
Common stock distributions declared | (3,529) | (3,529) | ||||
Distribution reinvestment | 161 | 161 | ||||
Redemptions | (8,132) | (8,132) | ||||
Equity-based compensation | 7 | 7 | ||||
Balance at Sep. 30, 2021 | $ 313,042 | $ 4 | $ 10 | $ 1 | $ 362,954 | $ (49,927) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||||
Net income (loss) | $ 2,462 | $ 6,056 | $ 7,125 | $ (30,796) | |
Adjustments to reconcile net income (loss) to cash provided by operations: | |||||
Net realized loss on real estate securities | 9,930 | 29,218 | |||
Net unrealized loss on real estate securities | (13,404) | 5,499 | |||
Provision for loan losses | 5,711 | $ 4,726 | |||
Realized loss on sale of commercial mortgage loan | 375 | ||||
Depreciation and amortization expense | 817 | 122 | |||
Reduction in the carrying amount of the right-of-use asset | 53 | 6 | |||
Amortization of equity-based compensation | 24 | 23 | |||
Amortization of debt finance costs to operating expense | 1,138 | 961 | |||
Amortization of debt finance costs to interest expense | 54 | 60 | |||
Amortization of bond discount | (307) | ||||
Amortization of origination fees | (582) | (1,228) | |||
Amortization of deferred exit fees | 6 | 62 | |||
Amortization of loan extension fees | (266) | ||||
Changes in assets and liabilities: | |||||
Accrued interest receivable | (53) | 389 | |||
Accrued expenses | 3,486 | 503 | |||
Loan fees payable | (350) | 176 | |||
Accrued interest payable | 261 | (532) | |||
Due to related parties | (168) | 687 | |||
Prepaid expenses and other assets | (1,044) | (679) | |||
Net cash provided by operating activities | 10,501 | 10,250 | |||
Cash flows from investing activities: | |||||
Origination of commercial loans | (149,068) | (59,990) | |||
Loan extension fees received on commercial loans | 231 | ||||
Principal repayments of commercial loans | 69,500 | 85,080 | |||
Proceeds from sale of commercial loan | 9,625 | ||||
Acquisition of real estate owned and capital expenditures | (67) | (637) | |||
Proceeds from real estate securities sold | 96,453 | ||||
Real estate securities principal paydown | 2,178 | ||||
Net cash (used in) provided by investing activities | (79,404) | 132,709 | |||
Cash flows from financing activities: | |||||
Proceeds from issuance of common stock | 10 | 24,261 | |||
Proceeds from issuance of preferred stock | 87,500 | ||||
Redemptions of common stock | (8,313) | (763) | |||
Payment of offering costs | (4,231) | (1,714) | |||
Proceeds from repurchase agreements | 103,920 | 578,182 | |||
Principal repayments of repurchase agreements | (51,438) | (720,180) | |||
Proceeds from credit facility | 14,350 | ||||
Debt finance costs | (1,086) | (786) | |||
Distributions paid to common stockholders | (9,079) | (6,770) | |||
Net cash provided by (used in) financing activities | 131,633 | (127,770) | |||
Net change in cash, cash equivalents and restricted cash | 62,730 | 15,189 | |||
Cash, cash equivalents and restricted cash at beginning of period | 72,107 | 37,639 | 37,639 | ||
Cash, cash equivalents and restricted cash at end of period | $ 134,837 | $ 52,828 | 134,837 | 52,828 | $ 72,107 |
Supplemental disclosure of cash flow information: | |||||
Amortization of deferred exit fees due to related party | 349 | 208 | |||
Interest paid | 6,498 | 9,050 | |||
Receivables for real estate securities sold | 12,066 | ||||
Deferred interest capitalized on commercial loan | 258 | ||||
Accrued stockholder servicing fee due to related party | (49) | 420 | |||
Distribution reinvestment | $ 421 | $ 127 |
Organization and Business Opera
Organization and Business Operations | 9 Months Ended |
Sep. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Business Operations | Note 1 – Organization and Business Operations InPoint Commercial Real Estate Income, Inc. (the “Company”) was incorporated in Maryland on September 13, 2016 to originate, acquire and manage a diversified portfolio of commercial real estate (“CRE”) investments primarily comprised of floating-rate CRE debt, including first mortgage loans, subordinate mortgage and mezzanine loans, and participations in such loans. The Company may also invest in floating-rate CRE securities, such as commercial mortgage-backed securities (“CMBS”), and senior unsecured debt of publicly traded real estate investment trusts (“REITs”), and select equity investments in single-tenant, net leased properties. Substantially all of the Company’s business is conducted through InPoint REIT Operating Partnership, LP (the “Operating Partnership”), a Delaware limited partnership. The Company is the sole general partner and directly or indirectly holds all limited partner interests in the Operating Partnership. The Company has elected to be taxed as a REIT for U.S. federal income tax purposes. The Company is externally managed by Inland InPoint Advisor, LLC (the “Advisor”), a Delaware limited liability company formed in August 2016 that is a wholly owned indirect subsidiary of Inland Real Estate Investment Corporation, a member of The Inland Real Estate Group of Companies, Inc. The Advisor is responsible for coordinating the management of the day-to-day operations and originating, acquiring and managing the Company’s CRE investment portfolio, subject to the supervision of the Company’s board of directors (the “Board”). The Advisor performs its duties and responsibilities as the Company’s fiduciary pursuant to a second amended and restated advisory agreement dated July 1, 2021 among the Company, the Operating Partnership and the Advisor (the “Advisory Agreement”). The Advisor has delegated certain of its duties to SPCRE InPoint Advisors, LLC (the “Sub-Advisor”), a Delaware limited liability company formed in September 2016 that is a wholly owned subsidiary of Sound Point CRE Management, LP, pursuant to a second amended and restated sub-advisory agreement between the Advisor and the Sub-Advisor dated July 1, 2021. Among other duties, the Sub-Advisor has the authority to identify, negotiate, acquire and originate the Company’s investments and provide portfolio management, disposition, property management and leasing services to the Company. Notwithstanding such delegation to the Sub-Advisor, the Advisor retains ultimate responsibility for the performance of all the matters entrusted to it under the Advisory Agreement, including those duties that the Advisor has not delegated to the Sub-Advisor, such as (i) valuation of the Company’s assets and calculation of the Company’s net asset value (“NAV”); (ii) management of the Company’s day-to-day operations; (iii) preparation of stockholder reports and communications and arrangement of the Company’s annual stockholder meeting; and (iv) monitoring the Company’s ongoing compliance with the REIT qualification requirements. On October 25, 2016, the Company commenced a private offering (the “Private Offering”) of up to $500,000 of shares of Class P common stock (“Class P shares”). Inland Securities Corporation, an affiliate of the Advisor (the “Dealer Manager”), was the dealer manager for the Private Offering. The Company issued 10,258,094 Class P shares in the Private Offering, resulting in gross proceeds of $276,681 and terminated the Private Offering on June 28, 2019, in anticipation of selling shares in a registered public offering. On May 3, 2019, the Company commenced its public offering of up to $2,350,000 of shares of its common stock (the “IPO”) registered with the Securities and Exchange Commission (the “SEC”) on Form S-11 (File No. 333-230465, the “Registration Statement”). The purchase price per share for each class of common stock in the IPO (Class A, Class I, Class D, Class S and Class T) varies and generally equals the prior month’s NAV per share, as determined monthly, plus applicable upfront selling commissions and dealer manager fees. The Dealer Manager serves as the Company’s exclusive dealer manager for the IPO on a best efforts basis. On March 24, 2020, the Board suspended (i) the sale of shares in the IPO, (ii) the operation of the share repurchase program (the “SRP”), (iii) the payment of distributions to the Company’s stockholders, and (iv) the operation of the distribution reinvestment plan (the “DRP”), effective as of April 6, 2020. In determining to take these actions, the Board considered various factors, including the impact of the COVID-19 pandemic on the economy, the inability to accurately calculate the Company’s NAV per share due to uncertainty, volatility and lack of liquidity in the market, the Company’s need for liquidity due to financing challenges related to additional collateral required by the banks that regularly finance the Company’s assets and these uncertain and rapidly changing economic conditions. Though the Company did not calculate the NAV for the months of March through May 2020, the Advisor resumed calculating the NAV beginning as of June 30, 2020 following its determination that volatility in the market for the Company’s investments had declined and the U.S. economic outlook had improved. In August 2020, the Company resumed paying distributions monthly to stockholders of record for all classes of its common stock. On October 1, 2020, the SEC declared effective the Company’s post-effective amendment to the Registration Statement, thereby permitting the Company to resume offers and sales of shares of common stock in the IPO, including through the DRP. On March 1, 2021, the SRP was reinstated for the Company’s stockholders requesting repurchase of shares as a result of the death or qualified disability of the holder, and on July 1, 2021, the SRP was reinstated for all stockholders. In accordance with the terms of the SRP that allow the Company to repurchase fewer shares than the maximum amount permitted under the SRP, the Company repurchased fewer shares than the maximum amount permitted for the months of July, August and September 2021 as directed by the Board . Beginning on October 1, 2021, the total amount of aggregate repurchases of shares is limited as set forth in the SRP (no more than 2 % of the Company’s aggregate NAV per month as of the last day of the previous calendar month and no more than 5 % of the Company’s aggregate NAV per calendar quarter with NAV measured as of the last day of the previous calendar quarter ). Notwithstanding the foregoing, the Company may repurchase fewer shares than these limits in any month, or none . Further, the Board may modify, suspend or terminate the SRP if it deems such action to be in the Company’s best interest and the best interest of its stockholders. On September 22, 2021, the Company completed an underwritten public offering of 3,500,000 shares of its 6.75% Series A Cumulative Redeemable Preferred Stock, par value $0.001 per share (the “Series A Preferred Stock”) , with a liquidation preference of $25.00 per share (the “Preferred Stock Offering”) . The Series A Preferred Stock were issued and sold pursuant to an effective registration statement on Form S-11 (File No. 333-258802) filed with the SEC. Preferred Stock Offering Please refer to “Note 15 – Subsequent Events” for updates to the Company’s business after September 30, 2021. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting Policies Disclosures discussing all significant accounting policies are set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (the “Annual Report”), as filed with the SEC on March 19, 2021, under the heading “Note 2 – Summary of Significant Accounting Policies.” The Company has added to its significant accounting policies for the nine months ended September 30, 2021 as a result of the draw on its credit facility. Basis of Accounting The accompanying consolidated financial statements and related footnotes have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and require management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reported periods. Actual results could differ from such estimates. In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. Credit Facility Payable The Company has a credit facility to finance the acquisition or origination of commercial mortgage loans. This credit facility, when drawn upon, is accounted for as debt. The fees paid for this credit facility are recorded in deferred debt finance costs on the consolidated balance sheet and are amortized straight line over the period of the agreement to debt finance costs on the consolidated statement of operations. For further information on the credit facility, see “Note 5 – Repurchase Agreements and Credit Facilities.” Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include funds on deposit with financial institutions, including demand deposits with financial institutions with original maturities of three months or less. The account balance may exceed the Federal Deposit Insurance Corporation (“FDIC”) insurance coverage limits and, as a result, there could be a concentration of credit risk related to amounts on deposit in excess of FDIC insurance coverage limits. The Company believes that the risk will not be significant, as the Company does not anticipate the financial institutions’ non-performance. Restricted cash represents cash the Company is required to hold in a segregated account as additional collateral on real estate securities repurchase agreements. As of September 30, 2021 and December 31, 2020, the Company had repaid all outstanding repurchase agreements secured by real estate securities and, therefore, no restricted cash was held. Accounting Pronouncements Recently Issued but Not Yet Effective In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which changed how entities measure credit losses for financial assets carried at amortized cost. ASU 2016-13 eliminated the requirement that a credit loss must be probable before it can be recognized and instead required an entity to recognize the current estimate of all expected credit losses. ASU 2016-13 became effective for SEC filers for reporting periods beginning after December 15, 2019. In November 2019, the FASB issued ASU 2019-10, “Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates”, which grants smaller reporting companies (as defined by the SEC) until reporting periods commencing after December 15, 2022 to implement ASU 2016-13. As a smaller reporting company, the Company will continue to evaluate the future impact ASU 2016-13, once implemented, will have on its allowance for loan losses estimate. |
Commercial Mortgage Loans Held
Commercial Mortgage Loans Held for Investment | 9 Months Ended |
Sep. 30, 2021 | |
Mortgage Loans On Real Estate [Abstract] | |
Commercial Mortgage Loans Held for Investment | Note 3 – Commercial Mortgage Loans Held for Investment The tables below show the Company’s commercial mortgage loans held for investment as of September 30, 2021 and December 31, 2020: September 30, 2021 Loan Type (1) Number of Loans Principal Balance Unamortized (fees)/costs, net Carrying Value Weighted Average Interest Rate Weighted Average Years to Maturity First mortgage loans 31 $ 504,764 $ 1,078 $ 505,842 5.0 % 1.4 Credit loans 3 16,500 — 16,500 9.5 % 4.1 Total and average 34 $ 521,264 $ 1,078 $ 522,342 5.2 % 1.5 December 31, 2020 Loan Type (1) Number of Loans Principal Balance Unamortized (fees)/costs, net Carrying Value Weighted Average Interest Rate Weighted Average Years to Maturity First mortgage loans 26 $ 425,196 $ 118 $ 425,314 5.3 % 1.5 Credit loans 3 16,500 — 16,500 9.5 % 4.9 Total and average 29 $ 441,696 $ 118 $ 441,814 5.5 % 1.6 (1) For the nine months ended September 30, 2021 and the year ended December 31, 2020, the activity in the Company’s commercial mortgage loans, held-for-investment portfolio was as follows: Nine Months Ended September 30, 2021 Year Ended December 31, 2020 Balance at Beginning of Year $ 441,814 $ 504,702 Loan originations 149,068 69,135 Principal repayments (69,500 ) (99,727 ) Amortization of loan origination, loan extension and deferred exit fees 1,191 1,818 Sale of commercial loan — (10,000 ) Origination fees and extension fees received on commercial loans (231 ) — Provision for loan losses — (4,726 ) Deferred interest capitalized on commercial loan — 386 Transfer on deed-in-lieu of foreclosure to real estate owned — (19,774 ) Balance at End of Period $ 522,342 $ 441,814 Allowance for Loan Losses The following table presents the activity in the Company’s allowance for loan losses: Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 Beginning of period $ — $ — Provision for loan losses — (5,711 ) Charge-offs — 5,711 Ending allowance for loan losses $ — $ — During the nine-month period ended September 30, 2021, the Company determined that no loan losses were probable and, therefore, did not record an allowance for loan losses. In accordance with the Company’s allowance for loan loss policy, during the nine-month period ended September 30, 2020, the Company recorded impairment charges of $5,711 on one first mortgage loan secured by a hotel property in Illinois. The impairment charges were based on the estimated fair value of the underlying collateral, and the loan was terminated during August 2020 in connection with the Company’s acquisition of the collateral via a deed-in-lieu of foreclosure. In addition, the Company previously recorded a provision for loan loss of $1,500 on a credit loan secured by a hotel property located in Florida. During the quarter ended September 30, 2020, the Company determined that the loan had improved and that a loss was no longer probable. As such, the $1,500 allowance for loan loss previously recorded was reversed against the provision for loan losses. For the three and nine months ended September 30, 2020, interest income for the impaired loans was $0 and $465, respectively. For further information on the Company’s allowance for loan losses policy, see “Note 2 – Summary of Significant Accounting Policies” in its Annual Report. Credit Characteristics As part of the Company’s process for monitoring the credit quality of its investments, it performs a quarterly asset review of the investment portfolio and assigns risk ratings to each of its loans and certain securities it may own, such as CMBS. Risk factors include payment status, lien position, borrower financial resources and investment in collateral, collateral type, project economics and geographic location, as well as national and regional economic factors. To determine the likelihood of loss, the loans are rated on a 5-point scale as follows: Investment Grade Investment Grade Definition 1 Investment exceeding fundamental performance expectations and/or capital gain expected. Trends and risk factors since time of investment are favorable. 2 Performing consistent with expectations and a full return of principal and interest expected. Trends and risk factors are neutral to favorable. 3 Performing investment requiring closer monitoring. Trends and risk factors show some deterioration. Collection of principal and interest is still expected. 4 Underperforming investment with the potential of some interest loss but still expecting a positive return on investment. Trends and risk factors are negative. 5 Underperforming investment with expected loss of interest and some principal. All investments are assigned an initial risk rating of 2 at origination or acquisition. As of September 30, 2021, 28 loans had a risk rating of 2, six had a risk rating of 3 and none had a risk rating of 4. As of December 31, 2020, 19 loans had a risk rating of 2, seven had a risk rating of 3 and three had a risk rating of 4. There were no loans with a risk rating of 1 or 5 as of September 30, 2021 or December 31, 2020. Loan Modifications During April 2020, the Company agreed to modify one first mortgage loan on a hospitality property providing for a two-month partial reduction in the required monthly interest payment with payment of the amount by which the interest payments were reduced deferred to the two-month period beginning in October 2020. Prior to the COVID-19 pandemic, the loan was current on all required payments. The loan has continued to perform after the modification, and the underlying hospitality property has seen improvement in operating metrics due to increasing travel demand. The Company continues to monitor the loan, but does not believe a loss is probable and, as such, has not recorded any provision for loan losses related to the loan. |
Real Estate Securities
Real Estate Securities | 9 Months Ended |
Sep. 30, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Real Estate Securities | Note 4 – Real Estate Securities The Company classified its real estate securities as available-for-sale as of September 30, 2020. These investments were reported at fair value in the consolidated balance sheets with changes in fair value recorded in other income or loss in the consolidated statements of operations. The Company did not hold any real estate securities at September 30, 2021 or December 31, 2020. During the nine months ended September 30, 2020, the Company held real estate securities that generated unrealized losses in value of $5,710, primarily attributed to the significant economic impact of the COVID-19 pandemic on the economy. During the three and nine months ended September 30, 2020, the Company sold real estate securities for $52,525 and $96,453, respectively, that resulted in realized losses of $9,930 and $29,218, respectively. |
Repurchase Agreements and Credi
Repurchase Agreements and Credit Facilities | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure Of Repurchase Agreements [Abstract] | |
Repurchase Agreements and Credit Facilities | Note 5 – Repurchase Agreements and Credit Facilities Commercial Mortgage Loans On February 15, 2018, the Company, through a wholly owned subsidiary, entered into a master repurchase agreement (the “CF Repo Facility”) with Column Financial, Inc. as administrative agent for certain of its affiliates. The CF Repo Facility had an initial advance amount of $100,000, subject to a maximum advance amount of $250,000. The Company increased the advance amount in August 2018 to $175,000, and in January 2019 to $250,000. In March 2020, the Company temporarily increased the maximum advance amount to $300,000, but on June 30, 2020, the temporary increase expired and the maximum advance amount reverted to $250,000. The initial term of the CF Repo Facility was 12 months and the Company extended the maturity date in March 2020 to February 2021. During December 2020, the maturity date was further extended to December 2021. Advances under the CF Repo Facility for loans made before December 18, 2020 accrue interest at a per annum rate equal to the London Interbank Offered Rate (“LIBOR”) plus 2.25% with a 0.75% floor. Loans made on or after December 18, 2020 accrue interest at a per annum annual rate equal to LIBOR plus 2.25% to 2.75% with a 0.25% to 0.75% floor. The CF Repo Facility is subject to certain financial covenants. The Company was in compliance with all financial covenant requirements as of September 30, 2021 and December 31, 2020. On May 6, 2019, the Company, through a wholly owned subsidiary, entered into an uncommitted master repurchase agreement (the “JPM Repo Facility”) with JPMorgan Chase Bank, National Association. The JPM Repo Facility provides up to $150,000 in advances that the Company expects to use to finance the acquisition or origination of eligible loans and participation interests therein. Advances under the JPM Repo Facility accrue interest at per annum rates equal to the sum of (i) the applicable LIBOR index rate plus (ii) a margin of between 1.75% to 2.50%, depending on the attributes of the purchased assets. The maturity date of the JPM Repo Facility is May 6, 2022, with a one-year extension at the Company’s option, which may be exercised upon the satisfaction of certain conditions. The JPM Repo Facility is subject to certain financial covenants. The Company was in compliance with all financial covenant requirements as of September 30, 2021 and December 31, 2020. On March 10, 2021, the Company, through a wholly owned subsidiary, entered into a loan and security agreement and a promissory note (collectively, the “WA Credit Facility”) with Western Alliance Bank, an Arizona corporation (“Western Alliance”). The WA Credit Facility provides for loan advances up to the lesser of $75,000 or the borrowing base. The borrowing base consists of eligible assets pledged to and accepted by Western Alliance in its discretion up to the lower of (i) 60% to 70% of loan-to-unpaid balance or (ii) 45% to 50% of the loan-to-appraised value (depending on the property type underlying the asset, for both (i) and (ii)). Assets that would otherwise be eligible become ineligible after being pledged as part of the borrowing base for 36 months. Advances under the WA Credit Facility accrue interest at an annual rate equal to one-month LIBOR plus 3.25% with a floor of 4.0%. The initial maturity date of the WA Credit Facility is March 10, 2023. The Company has an option to convert the loan made pursuant to the WA Credit Facility upon its initial maturity to a term loan with the same interest rate and floor and a maturity of two years in exchange for, among other things, a conversion fee of 0.25% of the outstanding amount at the time of conversion. The WA Credit Facility requires maintenance of an average unrestricted aggregate deposit account balance with Western Alliance of not less than $3,750. Failure to meet the minimum deposit balance will result in, among other things, the interest rate of the WA Credit Facility increasing by 0.25% per annum for each quarter in which the compensating balances are not maintained. The Company was in compliance with all financial covenant requirements as of September 30, 2021 The JPM Repo Facility, CF Repo Facility and WA Credit Facility (collectively, the “Facilities”) are used to finance eligible loans and each act in the manner of a revolving credit facility that can be repaid as the Company’s assets are paid off and re-drawn as advances against new assets. The tables below show the Facilities as of September 30, 2021 and December 31, 2020: September 30, 2021 Weighted Average Committed Financing Amount Outstanding (1) Accrued Interest Payable Collateral Pledged Interest Rate Days to Maturity CF Repo Facility $ 250,000 $ 203,239 $ 199 $ 288,473 2.70 % 79 JPM Repo Facility 150,000 139,970 100 195,791 1.99 % 218 Repurchase agreements - commercial mortgage loans 400,000 343,209 299 484,264 2.41 % 136 WA Credit Facility 75,000 14,350 21 20,500 4.00 % 526 $ 475,000 $ 357,559 $ 320 $ 504,764 2.48 % 151 December 31, 2020 Weighted Average Committed Financing Amount Outstanding (1) Accrued Interest Payable Collateral Pledged Interest Rate Days to Maturity CF Repo Facility $ 250,000 $ 159,948 $ 187 $ 228,359 3.00 % 352 JPM Repo Facility 150,000 130,778 105 190,047 2.08 % 126 $ 400,000 $ 290,726 $ 292 $ 418,406 2.58 % 250 (1) Excludes $29 and $27 of unamortized debt issuance costs at September 30, 2021 and December 31, 2020, respectively. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Note 6 – Stockholders’ Equity Preferred Stock Offering On September 22, 2021, the Company issued and sold 3,500,000 shares of the Series A Preferred Stock at a public offering price of $25.00 per share, Dividends on the Series A Preferred Stock are cumulative and payable quarterly in arrears at a rate per annum equal to 6.75% per annum of the $25.00 liquidation preference (the “Initial Rate”). Subject to certain exceptions, upon a Change of Control that occurs on or prior to September 22, 2022 or upon a Downgrade Event (as such terms are defined in the Articles Supplementary designating the Series A Preferred Stock (the “Articles Supplementary”)) or where any shares of the Series A Preferred Stock remain outstanding after September 22, 2026, the Series A Preferred Stock will thereafter accrue cumulative cash dividends at a rate higher than the Initial Rate. Subject to certain exceptions, beginning on September 22, 2022, upon the occurrence of a Change of Control, each holder of shares of Series A Preferred Stock will have the right to convert some or all of the Series A Preferred Stock held by such holder into a number of the Company’s shares of Class I common stock as provided for in the Articles Supplementary. The Company may not redeem the Series A Preferred Stock prior to September 22, 2026, except in limited circumstances relating to maintaining the Company’s qualification as a REIT and in connection with a Change of Control The Series A Preferred Stock is listed on the New York Stock Exchange under the symbol ICR PR A. Share activity for Common Stock and Preferred Stock The following tables detail the change in the Company’s outstanding shares of all classes of common and preferred stock, including restricted common stock: Preferred Stock Common Stock Nine months ended September 30, 2021 Series A Class P Class A Class T Class S Class D Class I Beginning balance — 10,151,787 655,835 398,233 — 50,393 381,955 Issuance of shares 3,500,000 — — — — — 480 Distribution reinvestment — — 8,016 4,125 — 1,263 7,404 Issuance of restricted shares — — — — — — — Redemptions — (387,377 ) (9,373 ) (2,862 ) — (4,843 ) (6,379 ) Ending balance 3,500,000 9,764,410 654,478 399,496 — 46,813 383,460 Common Stock Nine months ended September 30, 2020 Class P Class A Class T Class S Class D Class I Beginning balance 10,182,305 272,006 121,718 — 41,538 100,743 Issuance of shares — 379,250 274,570 — 8,066 276,250 Distribution reinvestment — 2,310 963 — 477 1,309 Issuance of restricted shares — — — — — — Redemptions (30,518 ) — — — — — Ending balance 10,151,787 653,566 397,251 — 50,081 378,302 Distributions Distributions declared for January and February of 2020 on Class P shares were based on monthly record dates, payable in arrears the following month equal to a monthly amount of 1/12th 1/12th On March 24, 2020, the Board suspended the payment of distributions to the Company’s stockholders. In determining to suspend the payment of distributions, the Board considered various factors, including the impact of the COVID-19 pandemic on the economy, the inability to accurately calculate the Company’s NAV per share due to uncertainty, volatility and lack of liquidity in the market, the Company’s need for liquidity due to financing challenges related to additional collateral required by the banks that regularly finance the Company’s assets and these uncertain and rapidly changing economic conditions. Though the Company did not calculate the NAV for the months of March through May 2020, the Advisor resumed calculating the NAV beginning as of June 30, 2020 following its determination that volatility in the market for the Company’s investments had declined and the U.S. economic outlook had improved. In August 2020, the Company resumed paying distributions monthly to stockholders of record for all classes of shares. The table below presents the aggregate annualized and monthly distributions declared on common stock by record date for all classes of shares since the Company resumed paying distributions. Record date Aggregate annualized gross distribution declared per share Aggregate monthly gross distribution declared per share July 31, 2020 $ 0.8576 $ 0.0715 August 31, 2020 $ 0.8800 $ 0.0733 September 30, 2020 $ 0.9000 $ 0.0750 October 31, 2020 $ 0.9000 $ 0.0750 November 30, 2020 $ 0.9000 $ 0.0750 December 31, 2020 $ 0.9000 $ 0.0750 January 31, 2021 $ 0.9500 $ 0.0792 February 28, 2021 $ 1.0000 $ 0.0833 March 31, 2021 $ 1.0500 $ 0.0875 April 30, 2021 $ 1.1000 $ 0.0917 May 31, 2021 $ 1.1500 $ 0.0958 June 30, 2021 $ 1.2500 $ 0.1042 July 31, 2021 $ 1.2500 $ 0.1042 August 31, 2021 $ 1.2500 $ 0.1042 September 30, 2021 $ 1.2500 $ 0.1042 Series A Preferred Stock dividends are paid quarterly in arrears based on an annualized distribution rate of 6.75% of the $25.00 per share liquidation preference, or $1.6875 per share per annum. The Series A Preferred Stock was issued on September 22, 2021 and no distributions were declared as of September 30, 2021. The table below presents the aggregate and net distributions declared for each applicable class of common stock during the nine months ended September 30, 2021 and 2020. The table excludes distributions declared for any month for a class of shares of stock when there were no outstanding shares of that class on the record date corresponding to that distribution. Common Stock Nine months ended September 30, 2021 Class P Class A Class T Class S Class D Class I Aggregate gross distributions declared per share $ 0.8543 $ 0.8543 $ 0.8543 $ — $ 0.8543 $ 0.8543 Stockholder servicing fee per share N/A N/A 0.1287 — 0.0379 N/A Net distributions declared per share $ 0.8543 $ 0.8543 $ 0.7256 $ — $ 0.8164 $ 0.8543 Common Stock Nine months ended September 30, 2020 Class P Class A Class T Class S Class D Class I Aggregate gross distributions declared per share $ 0.5398 $ 0.4898 $ 0.4898 $ — $ 0.4898 $ 0.4898 Stockholder servicing fee per share N/A N/A 0.0809 — 0.0237 N/A Net distributions declared per share $ 0.5398 $ 0.4898 $ 0.4089 $ — $ 0.4661 $ 0.4898 As of September 30, 2021, and December 31, 2020, distributions declared but not yet paid amounted to $1,166 and $867, respectively. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Note 7 – Net Income (Loss) Per Share Basic earnings per share (“EPS”) are computed by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS is computed by dividing net income attributable to common stockholders by the common shares plus common share equivalents. The Company’s common share equivalents are unvested restricted shares. The Company excludes antidilutive restricted shares from the calculation of weighted-average shares for diluted earnings per share. There were zero and 41 antidilutive restricted shares for the three and nine months ended September 30, 2021, respectively. There were zero and 285 antidilutive restricted shares for the three and nine months ended September 30, 2020, respectively. ee “Note 11 – Equity-Based Compensation.” The following table is a summary of the basic and diluted net income (loss) per share computation for the three and nine months ended September 30, 2021 and 2020: Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Net income (loss) attributable to common stockholders $ 2,462 $ 6,056 $ 7,125 $ (30,796 ) Weighted average shares outstanding, basic 11,433,665 11,630,987 11,570,868 11,537,483 Dilutive effect of restricted stock 640 444 263 — Weighted average shares outstanding, diluted 11,434,305 11,631,431 11,571,131 11,537,483 Net income (loss) attributable to common stockholders per share, basic and diluted $ 0.22 $ 0.52 $ 0.62 $ (2.67 ) |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 8 – Commitments and Contingencies In the ordinary course of business, the Company may become subject to litigation, claims and regulatory matters. The Company has no knowledge of material legal or regulatory proceedings pending or known to be contemplated against the Company at this time. The Company has made a commitment to advance additional funds under certain of its CRE loans if the borrower meets certain conditions. As of September 30, 2021, the Company had 26 of such loans with a total remaining future funding commitment of $67,563. As of December 31, 2020, the Company had 20 such loans with a total remaining future funding commitment of $50,940. The Company advances future funds if the borrower meets certain requirements as specified in the individual loan agreements. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 9 – Segment Reporting The Company has one reportable segment as defined by GAAP for the nine months ended September 30, 2021 and 2020. |
Transactions with Related Parti
Transactions with Related Parties | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Transactions with Related Parties | Note 10 – Transactions with Related Parties As of September 30, 2021, the Advisor had invested $1,000 in the Company through the purchase of 40,040 Class P shares. The purchase price per Class P share for the Advisor’s investment was equal to $25.00, with no payment of selling commissions, dealer manager fees or organization and offering expenses. The Advisor has agreed pursuant to its subscription agreement that, for so long as it or its affiliate is serving as the Company’s advisor, (i) it will not sell or transfer at least 8,000 of the Class P shares that it has purchased, accounting for $200 of its investment, to an unaffiliated third party; (ii) it will not be eligible to submit a request for these 40,040 Class P shares pursuant to the SRP prior to the fifth anniversary of the date on which such Class P shares were purchased (November 2021); and (iii) repurchase requests made for these Class P shares will only be accepted (a) on the last business day of a calendar quarter, (b) after all repurchase requests from all other stockholders for such quarter have been accepted and (c) to the extent that such repurchases do not cause total repurchases in the quarter in which they are being repurchased to exceed that quarter’s repurchase cap. As of September 30, 2021, Sound Point Capital Management, LP (“Sound Point”), an affiliate of the Sub-Advisor, had invested $3,000 in the Company through the purchase of 120,000 Class P shares. The purchase price per Class P share for this investment was $25.00, with no payment of selling commissions, dealer manager fees or organization and offering expenses. Sound Point has agreed pursuant to its subscription agreement that, for so long as the Sub-Advisor or its affiliate is serving as the Company’s sub-advisor, (i) it will not be eligible to submit a request for the repurchase of these 120,000 Class P shares pursuant to the SRP prior to the fifth anniversary of the date on which such Class P shares were purchased (November 2021); and (ii) repurchase requests made for these Class P shares will only be accepted (a) on the last business day of a calendar quarter, (b) after all repurchase requests from all other stockholders for such quarter have been accepted and (c) to the extent that such repurchases do not cause total repurchases in the quarter in which they are being repurchased to exceed that quarter’s repurchase cap. The following table summarizes the Company’s related party transactions for the three and nine months ended September 30, 2021 and 2020 and the amount due to related parties at September 30, 2021 and December 31, 2020: Three months ended September 30, Nine months ended September 30, Payable as of September 30, Payable as of December 31, 2021 2020 2021 2020 2021 2020 Organization and offering expense reimbursement (1) $ 22 $ — $ 22 $ 70 $ 22 $ — Selling commissions and dealer manager fee (2) — — — 758 — — Advisory fee (3) 771 1,572 2,245 3,973 283 507 Loan fees (4) 270 137 2,469 1,230 1,254 912 Accrued stockholder servicing fee (5) — — — 446 625 674 Operating expense reimbursement to advisor (6) 63 — 78 — 41 — Total $ 1,126 $ 1,709 $ 4,814 $ 6,477 $ 2,225 $ 2,093 (1) The Company reimbursed the Advisor, the Sub-Advisor and their respective affiliates for costs and other expenses related to the Private Offering, provided that aggregate reimbursements of such costs and expenses did not exceed the organization and offering expenses paid by investors in connection with the sale of Class P shares in the Private Offering. The Company reimburses the Advisor, the Sub-Advisor and their respective affiliates for costs and other expenses related to the IPO, provided the Advisor has agreed to reimburse the Company to the extent that the organization and offering expenses that the Company incurs exceeds 15% of its gross proceeds from the IPO. For the Private Offering, o (2) The Dealer Manager received selling commissions up to 5%, and a dealer manager fee up to 3%, of the transaction price for each Class P share sold in the Private Offering, the majority of which was paid to third-party broker-dealers. For the IPO, the Dealer Manager is entitled to receive (a) upfront selling commissions of up to 6.0%, and upfront dealer manager fees of up to 1.25%, of the transaction price of each Class A share sold in the primary offering, however such amounts may vary at certain participating broker-dealers provided that the sum will not exceed 7.25% of the transaction price; (b) upfront selling commissions of up to 3.0%, and upfront dealer manager fees of 0.5%, of the transaction price of each Class T share sold in the primary offering, however such amounts may vary at certain participating broker-dealers provided that the sum will not exceed 3.5% of the transaction price; and (c) upfront selling commissions of up to 3.5% of the transaction price of each Class S share sold in the primary offering. No upfront selling commissions or dealer manager fees are paid with respect to purchases of Class D shares, Class I shares or shares of any class sold pursuant to the DRP. (3) The advisory fee is comprised of two separate components: (1) a fixed component payable monthly and (2) a performance component payable annually. Prior to July 1, 2021, the fixed component of the advisory fee was paid in an amount equal to 1/12th of 1.25 1/12 th ( 4 ) Pursuant to the Advisory Agreement, the Company pays the Advisor all loan origination and administrative fees related to CRE loans held for investment, to the extent that such fees are paid by the borrower. ( 5 ) Subject to the Financial Industry Regulatory Authority, Inc. limitations on underwriting compensation, the Company pays the Dealer Manager selling commissions over time as stockholder servicing fees for ongoing services rendered to stockholders by participating broker-dealers or broker-dealers servicing stockholders’ accounts as follows: (a) for Class T shares only, 0.85% per annum of the NAV of the Class T shares; (b) for Class S shares only, 0.85% per annum of the aggregate NAV for the Class S shares; and (c) for Class D shares only, 0.25% per annum of the aggregate NAV for the Class D shares. The Company will cease paying the stockholder servicing fee with respect to any Class T share, Class S share or Class D share held in a stockholder’s account upon the occurrence of certain events. The Company accrues the full cost of the stockholder servicing fee as an offering cost at the time the Company sells Class T, Class S, and Class D shares. The Dealer Manager does not retain any of these fees, all of which are retained by, or reallowed (paid) to, participating broker-dealers and servicing broker-dealers for ongoing stockholder services performed by such broker-dealers. (6) Prior to July 1, 2021, the Company reimbursed the Advisor for expenses that it (or the Sub-Advisor acting on the Advisor’s behalf) incurs in connection with providing services to the Company, provided that the Company did not reimburse overhead costs, including rent and utilities or personnel costs (including salaries, bonuses, benefits and severance payments) and the Company only reimbursed the Advisor for fees payable to its affiliates if they are incurred for legal or marketing services rendered on the Company’s behalf. Effective July 1, 2021, the Company reimburses for all of the expenses attributable to the Company or its subsidiaries, including the Operating Partnership, and paid or incurred by the Advisor, the Sub-Advisor or their respective affiliates in providing services to the Company under the Advisory Agreement, including personnel and related employment costs Expense Limitation Agreement Pursuant to an expense limitation agreement (the “Expense Limitation Agreement”) dated July 1, 2021, the Advisor and Sub-Advisor agree to waive reimbursement of or pay, on a quarterly basis, certain of the Company’s ordinary operating expenses for each class of shares to the extent necessary to ensure that the ordinary operating expenses do not exceed 1.5% of the average monthly net assets on an annualized basis (the “1.5% Expense Limit”). Amounts waived or paid by the Advisor or Sub-Advisor pursuant to the Expense Limitation Agreement are subject to conditional repayment on a quarterly basis by the Company during the three years following the quarter in which the expenses were incurred, but only to the extent such repayment does not cause the Company to exceed its then-current expenses limitation, if any, for such quarter. Any waiver or reimbursement by the Advisor or Sub-Advisor not repaid by the Company within the three-year Separately from the limitation on ordinary operating expenses under the Expense Limitation Agreement, the Advisor and Sub-Advisor voluntarily chose not to seek reimbursement for certain expenses that they incurred or paid on behalf of the Company during the three and nine months ended September 30, 2021, and for which they may have been entitled to be reimbursed. The Advisory Agreement and Sub-Advisory Agreement provide that expenses will be submitted monthly to the Company for reimbursement, and the amount of expenses submitted for reimbursement in any particular month is not necessarily indicative of the total amount of expenses actually incurred by the Advisor and the Sub-Advisor in providing services to the Company and for which reimbursement could have been received by the Advisor or Sub-Advisor. Revolving Credit Liquidity Letter Agreements Inland Real Estate Investment Corporation (“IREIC”), the Company’s sponsor, and Sound Point have agreed under separate letter agreements dated July 20, 2021, and July 15, 2021, respectively, to make revolving credit loans to the Company in an aggregate principal amount outstanding at any one time not to exceed $5,000 and $15,000, respectively (the “IREIC-Sound Point Commitments”) from time to time until the Termination Date (defined below) of the letter agreements. These letter agreements are identical to each other in all material respects other than the commitment amounts. Use of the IREIC-Sound Point Commitments is limited to satisfying requirements to maintain cash or cash equivalents under the Company’s repurchase and other borrowing arrangements. The “Termination Date” is the earliest of (i) the Maturity Date (defined below) (ii) the first date on which the Company’s balance sheet equity is equal to or greater than $500,000, (iii) the date IREIC or one of its affiliates is no longer the Company’s Advisor or Sound Point or one of its affiliates is no longer the Company’s Sub-Advisor and (iv) such earlier date on which the commitment will terminate as provided in the letter agreements, for example, because of an event of default. The “Maturity Date” is one year from the date of the agreement, and the Maturity Date will be automatically extended every year for an additional year, unless (a) the lender delivers notice of termination 60 days |
Equity-Based Compensation
Equity-Based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity-Based Compensation | Note 11 – Equity-Based Compensation On December 1, 2020, the Company granted each of its three independent directors 464 restricted Class I shares for a total of 1,393 Class I shares with a grant date fair value of $21.54 per share and a total combined fair value of $30. The restricted Class I shares will vest in equal one-third On December 2, 2019, the Company granted each of its three independent directors 399 restricted Class I shares for a total of 1,197 Class I shares with a grant date fair value of $25.07 per share and a total combined fair value of $30. The restricted Class I shares vest in equal one-third one-third one-third Under the Company’s Independent Director Restricted Share Plan, restricted shares generally vest over a three-year A summary table of the status of the restricted shares is presented below: Restricted Shares Weighted Average Grant Date Fair Value Per Share Outstanding at December 31, 2020 3,391 $ 23.59 Granted — - Vested (800 ) 25.00 Converted — — Forfeited — — Outstanding at September 30, 2021 2,591 $ 23.16 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 12 – Fair Value of Financial Instruments GAAP requires the disclosure of fair value information about financial instruments, whether or not they are recognized at fair value in the consolidated balance sheets, for which it is practicable to estimate that value. The following table details the carrying amount and estimated fair value of the Company’s financial instruments at the dates below: September 30, 2021 December 31, 2020 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Financial assets Cash and cash equivalents $ 134,837 $ 134,837 $ 72,107 $ 72,107 Commercial mortgage loans, net 522,342 524,847 441,814 441,267 Total $ 657,179 $ 659,684 $ 513,921 $ 513,374 Financial liabilities Repurchase agreements - commercial mortgage loans $ 343,180 $ 343,180 $ 290,699 $ 290,699 Credit facility payable 14,350 14,350 — — Total $ 357,530 $ 357,530 $ 290,699 $ 290,699 The following describes the Company’s methods for estimating the fair value for financial instruments: • The estimated fair value of cash and cash equivalents and restricted cash was based on the bank balance and was a Level 1 fair value measurement. • The estimated fair value of commercial mortgage loans, net is a Level 3 fair value measurement. The Sub-Advisor estimates the fair values of commercial loans by analyzing interest rate spreads on loans based on various factors including capitalization rates, occupancy rates, sponsorship, geographic concentration, collateral type, market conditions and actions of other lenders. • The estimated fair values of the repurchase agreements – commercial mortgage loans and the credit facility payable are Level 3 fair value measurements based on expected present value techniques. This method discounts future estimated cash flows using rates the Company determined best reflect current market interest rates that would be offered for repurchase agreements and credit facilities with similar characteristics and credit quality. |
Real Estate Owned
Real Estate Owned | 9 Months Ended |
Sep. 30, 2021 | |
Real Estate [Abstract] | |
Real Estate Owned | Note 13 – Real Estate Owned The following table summarizes the Company’s real estate owned assets as of September 30, 2021: Acquisition Date Property Type Primary Location(s) Building and Improvements Furniture, Fixtures and Equipment Accumulated Depreciation Real Estate Owned, Net August 2020 (1)(2) Hotel Chicago, IL $ 26,683 $ 6,262 $ (1,221 ) $ 31,724 (1) Refer to “Note 2 – Summary of Significant Accounting Policies” in the Annual Report for useful life of the above assets. (2) Represents assets acquired by the Company by completing a deed-in-lieu of foreclosure transaction. In February 2021, the Company received a loan under the Paycheck Protection Program (“PPP”) related to the operations of the Company’s 362-room hotel located in Chicago, Illinois known as the Renaissance Chicago O’Hare Suites Hotel (the “Renaissance O’Hare”). This five-year loan was for $1,093 with a fixed interest rate of 1.00% that does not compound. The PPP was created as part of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). To be eligible to receive a loan, companies must make a number of certifications related to The Company intends to qualify and apply for loan forgiveness and as such is accounting for this PPP loan using a government grant accounting approach. The grant proceeds are initially recorded in accrued expenses on the consolidated balance sheet. Each month, those proceeds are applied as a reduction to payroll-related costs within real estate owned operating expenses on the consolidated statement of operations until the proceeds have been fully absorbed by the payroll-related expenses. As of September 30, 2021, no balance remains recorded in accrued expenses for the PPP loan to be absorbed by payroll-related expenses. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | Note 14 – Leases The Company is the lessee under one ground lease. The ground lease, which commenced on April 1, 1999, was assumed as part of the Renaissance O’Hare acquired through a deed-in-lieu of foreclosure transaction on August 20, 2020 and extends through March 31, 2098. The lease is classified as a finance lease. Under the ground lease, the Company is prohibited from mortgaging the land but is not prohibited from making a leasehold mortgage for property constructed on the land. The Company may terminate the lease as of March 31, 2049, March 31, 2065 and March 31, 2081 provided that twelve months’ notice is provided to the lessor prior to those respective dates. Upon assumption of the lease, the Company recorded a lease liability of $16,827 and a right-of-use asset of $5,549 on its consolidated balance sheet. The lease liability was based on the present value of the ground lease’s future payments using an interest rate of 11.37%, which the Company considers reasonable and within the range of the Company’s incremental borrowing rate. For the three and nine months ended September 30, 2021 and 2020, total finance lease cost recorded to real estate owned operating expenses on the Company’s consolidated statements of operations was comprised as follows: Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Amortization of right-of-use assets $ 18 $ 6 $ 53 $ 6 Interest on lease liabilities 482 158 1,440 158 Total finance lease cost $ 500 $ 164 $ 1,493 $ 164 The table below shows the Company’s finance lease right of use asset, net of amortization as of September 30, 2021 and December 31, 2020: September 30, December 31, 2021 2020 Finance lease right of use asset, gross $ 5,549 $ 5,549 Accumulated amortization (77 ) (24 ) Finance lease right of use asset, net of amortization $ 5,472 $ 5,525 Remaining lease payments for the ground lease as of September 30, 2021 for each of the five succeeding years and thereafter is as follows: Lease Payments 2021 (remaining) $ 403 2022 1,611 2023 1,611 2024 1,745 2025 1,772 Thereafter 271,457 Total undiscounted lease payments $ 278,599 Less: Amount representing interest (261,576 ) Present value of lease liability $ 17,023 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 15 – Subsequent Events The Company has evaluated subsequent events through November 12, 2021, the date the financial statements were issued. The following are updates on the Company’s operations since September 30, 2021. Common Stock Distributions On October 28, 2021, the Company announced that the Board authorized distributions to stockholders of record as of October 31, 2021, payable on or about November 17, 2021 Common Stock Class P Class A Class T Class S Class D Class I Aggregate gross distributions declared per share $ 0.1042 $ 0.1042 $ 0.1042 $ — $ 0.1042 $ 0.1042 Stockholder servicing fee per share N/A N/A 0.0147 — 0.0043 N/A Net distributions declared per share $ 0.1042 $ 0.1042 $ 0.0895 $ — $ 0.0999 $ 0.1042 Partial Exercise of Over-allotment Option in Series A Preferred Stock Offering On October 7, 2021, Raymond James & Associates, Inc., as representative of the underwriters, |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Accounting | Basis of Accounting The accompanying consolidated financial statements and related footnotes have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and require management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reported periods. Actual results could differ from such estimates. In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. |
Credit Facility Payable | Credit Facility Payable The Company has a credit facility to finance the acquisition or origination of commercial mortgage loans. This credit facility, when drawn upon, is accounted for as debt. The fees paid for this credit facility are recorded in deferred debt finance costs on the consolidated balance sheet and are amortized straight line over the period of the agreement to debt finance costs on the consolidated statement of operations. For further information on the credit facility, see “Note 5 – Repurchase Agreements and Credit Facilities.” |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include funds on deposit with financial institutions, including demand deposits with financial institutions with original maturities of three months or less. The account balance may exceed the Federal Deposit Insurance Corporation (“FDIC”) insurance coverage limits and, as a result, there could be a concentration of credit risk related to amounts on deposit in excess of FDIC insurance coverage limits. The Company believes that the risk will not be significant, as the Company does not anticipate the financial institutions’ non-performance. Restricted cash represents cash the Company is required to hold in a segregated account as additional collateral on real estate securities repurchase agreements. As of September 30, 2021 and December 31, 2020, the Company had repaid all outstanding repurchase agreements secured by real estate securities and, therefore, no restricted cash was held. |
Accounting Pronouncements Recently Issued but Not Yet Effective | Accounting Pronouncements Recently Issued but Not Yet Effective In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which changed how entities measure credit losses for financial assets carried at amortized cost. ASU 2016-13 eliminated the requirement that a credit loss must be probable before it can be recognized and instead required an entity to recognize the current estimate of all expected credit losses. ASU 2016-13 became effective for SEC filers for reporting periods beginning after December 15, 2019. In November 2019, the FASB issued ASU 2019-10, “Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates”, which grants smaller reporting companies (as defined by the SEC) until reporting periods commencing after December 15, 2022 to implement ASU 2016-13. As a smaller reporting company, the Company will continue to evaluate the future impact ASU 2016-13, once implemented, will have on its allowance for loan losses estimate. |
Commercial Mortgage Loans Hel_2
Commercial Mortgage Loans Held for Investment (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Mortgage Loans On Real Estate [Abstract] | |
Schedule of Commercial Mortgage Loans Held for Investment | The tables below show the Company’s commercial mortgage loans held for investment as of September 30, 2021 and December 31, 2020: September 30, 2021 Loan Type (1) Number of Loans Principal Balance Unamortized (fees)/costs, net Carrying Value Weighted Average Interest Rate Weighted Average Years to Maturity First mortgage loans 31 $ 504,764 $ 1,078 $ 505,842 5.0 % 1.4 Credit loans 3 16,500 — 16,500 9.5 % 4.1 Total and average 34 $ 521,264 $ 1,078 $ 522,342 5.2 % 1.5 December 31, 2020 Loan Type (1) Number of Loans Principal Balance Unamortized (fees)/costs, net Carrying Value Weighted Average Interest Rate Weighted Average Years to Maturity First mortgage loans 26 $ 425,196 $ 118 $ 425,314 5.3 % 1.5 Credit loans 3 16,500 — 16,500 9.5 % 4.9 Total and average 29 $ 441,696 $ 118 $ 441,814 5.5 % 1.6 (1) |
Schedule of Commercial Mortgage Loans held for Investment Portfolio | For the nine months ended September 30, 2021 and the year ended December 31, 2020, the activity in the Company’s commercial mortgage loans, held-for-investment portfolio was as follows: Nine Months Ended September 30, 2021 Year Ended December 31, 2020 Balance at Beginning of Year $ 441,814 $ 504,702 Loan originations 149,068 69,135 Principal repayments (69,500 ) (99,727 ) Amortization of loan origination, loan extension and deferred exit fees 1,191 1,818 Sale of commercial loan — (10,000 ) Origination fees and extension fees received on commercial loans (231 ) — Provision for loan losses — (4,726 ) Deferred interest capitalized on commercial loan — 386 Transfer on deed-in-lieu of foreclosure to real estate owned — (19,774 ) Balance at End of Period $ 522,342 $ 441,814 |
Schedule of Allowance for Loan Losses | The following table presents the activity in the Company’s allowance for loan losses: Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 Beginning of period $ — $ — Provision for loan losses — (5,711 ) Charge-offs — 5,711 Ending allowance for loan losses $ — $ — |
Summary of Investment Grade of Loans Loss | As part of the Company’s process for monitoring the credit quality of its investments, it performs a quarterly asset review of the investment portfolio and assigns risk ratings to each of its loans and certain securities it may own, such as CMBS. Risk factors include payment status, lien position, borrower financial resources and investment in collateral, collateral type, project economics and geographic location, as well as national and regional economic factors. To determine the likelihood of loss, the loans are rated on a 5-point scale as follows: Investment Grade Investment Grade Definition 1 Investment exceeding fundamental performance expectations and/or capital gain expected. Trends and risk factors since time of investment are favorable. 2 Performing consistent with expectations and a full return of principal and interest expected. Trends and risk factors are neutral to favorable. 3 Performing investment requiring closer monitoring. Trends and risk factors show some deterioration. Collection of principal and interest is still expected. 4 Underperforming investment with the potential of some interest loss but still expecting a positive return on investment. Trends and risk factors are negative. 5 Underperforming investment with expected loss of interest and some principal. |
Repurchase Agreements and Cre_2
Repurchase Agreements and Credit Facilities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Commercial Mortgage Loans | |
Repurchase Agreement [Line Items] | |
Schedule of Outstanding Repurchase Agreements | The tables below show the Facilities as of September 30, 2021 and December 31, 2020: September 30, 2021 Weighted Average Committed Financing Amount Outstanding (1) Accrued Interest Payable Collateral Pledged Interest Rate Days to Maturity CF Repo Facility $ 250,000 $ 203,239 $ 199 $ 288,473 2.70 % 79 JPM Repo Facility 150,000 139,970 100 195,791 1.99 % 218 Repurchase agreements - commercial mortgage loans 400,000 343,209 299 484,264 2.41 % 136 WA Credit Facility 75,000 14,350 21 20,500 4.00 % 526 $ 475,000 $ 357,559 $ 320 $ 504,764 2.48 % 151 December 31, 2020 Weighted Average Committed Financing Amount Outstanding (1) Accrued Interest Payable Collateral Pledged Interest Rate Days to Maturity CF Repo Facility $ 250,000 $ 159,948 $ 187 $ 228,359 3.00 % 352 JPM Repo Facility 150,000 130,778 105 190,047 2.08 % 126 $ 400,000 $ 290,726 $ 292 $ 418,406 2.58 % 250 (1) Excludes $29 and $27 of unamortized debt issuance costs at September 30, 2021 and December 31, 2020, respectively. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of Change in Outstanding Shares Including Restricted Common Stock | The following tables detail the change in the Company’s outstanding shares of all classes of common and preferred stock, including restricted common stock: Preferred Stock Common Stock Nine months ended September 30, 2021 Series A Class P Class A Class T Class S Class D Class I Beginning balance — 10,151,787 655,835 398,233 — 50,393 381,955 Issuance of shares 3,500,000 — — — — — 480 Distribution reinvestment — — 8,016 4,125 — 1,263 7,404 Issuance of restricted shares — — — — — — — Redemptions — (387,377 ) (9,373 ) (2,862 ) — (4,843 ) (6,379 ) Ending balance 3,500,000 9,764,410 654,478 399,496 — 46,813 383,460 Common Stock Nine months ended September 30, 2020 Class P Class A Class T Class S Class D Class I Beginning balance 10,182,305 272,006 121,718 — 41,538 100,743 Issuance of shares — 379,250 274,570 — 8,066 276,250 Distribution reinvestment — 2,310 963 — 477 1,309 Issuance of restricted shares — — — — — — Redemptions (30,518 ) — — — — — Ending balance 10,151,787 653,566 397,251 — 50,081 378,302 |
Schedule of Distributions Declared | The table below presents the aggregate annualized and monthly distributions declared on common stock by record date for all classes of shares since the Company resumed paying distributions. Record date Aggregate annualized gross distribution declared per share Aggregate monthly gross distribution declared per share July 31, 2020 $ 0.8576 $ 0.0715 August 31, 2020 $ 0.8800 $ 0.0733 September 30, 2020 $ 0.9000 $ 0.0750 October 31, 2020 $ 0.9000 $ 0.0750 November 30, 2020 $ 0.9000 $ 0.0750 December 31, 2020 $ 0.9000 $ 0.0750 January 31, 2021 $ 0.9500 $ 0.0792 February 28, 2021 $ 1.0000 $ 0.0833 March 31, 2021 $ 1.0500 $ 0.0875 April 30, 2021 $ 1.1000 $ 0.0917 May 31, 2021 $ 1.1500 $ 0.0958 June 30, 2021 $ 1.2500 $ 0.1042 July 31, 2021 $ 1.2500 $ 0.1042 August 31, 2021 $ 1.2500 $ 0.1042 September 30, 2021 $ 1.2500 $ 0.1042 Common Stock Nine months ended September 30, 2021 Class P Class A Class T Class S Class D Class I Aggregate gross distributions declared per share $ 0.8543 $ 0.8543 $ 0.8543 $ — $ 0.8543 $ 0.8543 Stockholder servicing fee per share N/A N/A 0.1287 — 0.0379 N/A Net distributions declared per share $ 0.8543 $ 0.8543 $ 0.7256 $ — $ 0.8164 $ 0.8543 Common Stock Nine months ended September 30, 2020 Class P Class A Class T Class S Class D Class I Aggregate gross distributions declared per share $ 0.5398 $ 0.4898 $ 0.4898 $ — $ 0.4898 $ 0.4898 Stockholder servicing fee per share N/A N/A 0.0809 — 0.0237 N/A Net distributions declared per share $ 0.5398 $ 0.4898 $ 0.4089 $ — $ 0.4661 $ 0.4898 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Summary of Basic and Diluted Net Income (Loss) Per Share | The following table is a summary of the basic and diluted net income (loss) per share computation for the three and nine months ended September 30, 2021 and 2020: Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Net income (loss) attributable to common stockholders $ 2,462 $ 6,056 $ 7,125 $ (30,796 ) Weighted average shares outstanding, basic 11,433,665 11,630,987 11,570,868 11,537,483 Dilutive effect of restricted stock 640 444 263 — Weighted average shares outstanding, diluted 11,434,305 11,631,431 11,571,131 11,537,483 Net income (loss) attributable to common stockholders per share, basic and diluted $ 0.22 $ 0.52 $ 0.62 $ (2.67 ) |
Transactions with Related Par_2
Transactions with Related Parties (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Summary of Related Party Transactions | The following table summarizes the Company’s related party transactions for the three and nine months ended September 30, 2021 and 2020 and the amount due to related parties at September 30, 2021 and December 31, 2020: Three months ended September 30, Nine months ended September 30, Payable as of September 30, Payable as of December 31, 2021 2020 2021 2020 2021 2020 Organization and offering expense reimbursement (1) $ 22 $ — $ 22 $ 70 $ 22 $ — Selling commissions and dealer manager fee (2) — — — 758 — — Advisory fee (3) 771 1,572 2,245 3,973 283 507 Loan fees (4) 270 137 2,469 1,230 1,254 912 Accrued stockholder servicing fee (5) — — — 446 625 674 Operating expense reimbursement to advisor (6) 63 — 78 — 41 — Total $ 1,126 $ 1,709 $ 4,814 $ 6,477 $ 2,225 $ 2,093 (1) The Company reimbursed the Advisor, the Sub-Advisor and their respective affiliates for costs and other expenses related to the Private Offering, provided that aggregate reimbursements of such costs and expenses did not exceed the organization and offering expenses paid by investors in connection with the sale of Class P shares in the Private Offering. The Company reimburses the Advisor, the Sub-Advisor and their respective affiliates for costs and other expenses related to the IPO, provided the Advisor has agreed to reimburse the Company to the extent that the organization and offering expenses that the Company incurs exceeds 15% of its gross proceeds from the IPO. For the Private Offering, o (2) The Dealer Manager received selling commissions up to 5%, and a dealer manager fee up to 3%, of the transaction price for each Class P share sold in the Private Offering, the majority of which was paid to third-party broker-dealers. For the IPO, the Dealer Manager is entitled to receive (a) upfront selling commissions of up to 6.0%, and upfront dealer manager fees of up to 1.25%, of the transaction price of each Class A share sold in the primary offering, however such amounts may vary at certain participating broker-dealers provided that the sum will not exceed 7.25% of the transaction price; (b) upfront selling commissions of up to 3.0%, and upfront dealer manager fees of 0.5%, of the transaction price of each Class T share sold in the primary offering, however such amounts may vary at certain participating broker-dealers provided that the sum will not exceed 3.5% of the transaction price; and (c) upfront selling commissions of up to 3.5% of the transaction price of each Class S share sold in the primary offering. No upfront selling commissions or dealer manager fees are paid with respect to purchases of Class D shares, Class I shares or shares of any class sold pursuant to the DRP. (3) The advisory fee is comprised of two separate components: (1) a fixed component payable monthly and (2) a performance component payable annually. Prior to July 1, 2021, the fixed component of the advisory fee was paid in an amount equal to 1/12th of 1.25 1/12 th ( 4 ) Pursuant to the Advisory Agreement, the Company pays the Advisor all loan origination and administrative fees related to CRE loans held for investment, to the extent that such fees are paid by the borrower. ( 5 ) Subject to the Financial Industry Regulatory Authority, Inc. limitations on underwriting compensation, the Company pays the Dealer Manager selling commissions over time as stockholder servicing fees for ongoing services rendered to stockholders by participating broker-dealers or broker-dealers servicing stockholders’ accounts as follows: (a) for Class T shares only, 0.85% per annum of the NAV of the Class T shares; (b) for Class S shares only, 0.85% per annum of the aggregate NAV for the Class S shares; and (c) for Class D shares only, 0.25% per annum of the aggregate NAV for the Class D shares. The Company will cease paying the stockholder servicing fee with respect to any Class T share, Class S share or Class D share held in a stockholder’s account upon the occurrence of certain events. The Company accrues the full cost of the stockholder servicing fee as an offering cost at the time the Company sells Class T, Class S, and Class D shares. The Dealer Manager does not retain any of these fees, all of which are retained by, or reallowed (paid) to, participating broker-dealers and servicing broker-dealers for ongoing stockholder services performed by such broker-dealers. (6) Prior to July 1, 2021, the Company reimbursed the Advisor for expenses that it (or the Sub-Advisor acting on the Advisor’s behalf) incurs in connection with providing services to the Company, provided that the Company did not reimburse overhead costs, including rent and utilities or personnel costs (including salaries, bonuses, benefits and severance payments) and the Company only reimbursed the Advisor for fees payable to its affiliates if they are incurred for legal or marketing services rendered on the Company’s behalf. Effective July 1, 2021, the Company reimburses for all of the expenses attributable to the Company or its subsidiaries, including the Operating Partnership, and paid or incurred by the Advisor, the Sub-Advisor or their respective affiliates in providing services to the Company under the Advisory Agreement, including personnel and related employment costs |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Restricted Shares | A summary table of the status of the restricted shares is presented below: Restricted Shares Weighted Average Grant Date Fair Value Per Share Outstanding at December 31, 2020 3,391 $ 23.59 Granted — - Vested (800 ) 25.00 Converted — — Forfeited — — Outstanding at September 30, 2021 2,591 $ 23.16 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Amount and Estimated Fair Value of Company's Financial Instruments | The following table details the carrying amount and estimated fair value of the Company’s financial instruments at the dates below: September 30, 2021 December 31, 2020 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Financial assets Cash and cash equivalents $ 134,837 $ 134,837 $ 72,107 $ 72,107 Commercial mortgage loans, net 522,342 524,847 441,814 441,267 Total $ 657,179 $ 659,684 $ 513,921 $ 513,374 Financial liabilities Repurchase agreements - commercial mortgage loans $ 343,180 $ 343,180 $ 290,699 $ 290,699 Credit facility payable 14,350 14,350 — — Total $ 357,530 $ 357,530 $ 290,699 $ 290,699 |
Real Estate Owned (Tables)
Real Estate Owned (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Real Estate [Abstract] | |
Schedule of Company's REO Assets | The following table summarizes the Company’s real estate owned assets as of September 30, 2021: Acquisition Date Property Type Primary Location(s) Building and Improvements Furniture, Fixtures and Equipment Accumulated Depreciation Real Estate Owned, Net August 2020 (1)(2) Hotel Chicago, IL $ 26,683 $ 6,262 $ (1,221 ) $ 31,724 (1) Refer to “Note 2 – Summary of Significant Accounting Policies” in the Annual Report for useful life of the above assets. (2) Represents assets acquired by the Company by completing a deed-in-lieu of foreclosure transaction. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Summary of Finance Lease Cost | For the three and nine months ended September 30, 2021 and 2020, total finance lease cost recorded to real estate owned operating expenses on the Company’s consolidated statements of operations was comprised as follows: Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Amortization of right-of-use assets $ 18 $ 6 $ 53 $ 6 Interest on lease liabilities 482 158 1,440 158 Total finance lease cost $ 500 $ 164 $ 1,493 $ 164 |
Schedule of Finance Lease Right of Use Asset, Net of Amortization | The table below shows the Company’s finance lease right of use asset, net of amortization as of September 30, 2021 and December 31, 2020: September 30, December 31, 2021 2020 Finance lease right of use asset, gross $ 5,549 $ 5,549 Accumulated amortization (77 ) (24 ) Finance lease right of use asset, net of amortization $ 5,472 $ 5,525 |
Schedule of Remaining Lease Payments for the Ground Lease | Remaining lease payments for the ground lease as of September 30, 2021 for each of the five succeeding years and thereafter is as follows: Lease Payments 2021 (remaining) $ 403 2022 1,611 2023 1,611 2024 1,745 2025 1,772 Thereafter 271,457 Total undiscounted lease payments $ 278,599 Less: Amount representing interest (261,576 ) Present value of lease liability $ 17,023 |
Subsequent Events (Tables)
Subsequent Events (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Schedule of Authorized Distributions for Class of Common Stock | On October 28, 2021, the Company announced that the Board authorized distributions to stockholders of record as of October 31, 2021, payable on or about November 17, 2021 Common Stock Class P Class A Class T Class S Class D Class I Aggregate gross distributions declared per share $ 0.1042 $ 0.1042 $ 0.1042 $ — $ 0.1042 $ 0.1042 Stockholder servicing fee per share N/A N/A 0.0147 — 0.0043 N/A Net distributions declared per share $ 0.1042 $ 0.1042 $ 0.0895 $ — $ 0.0999 $ 0.1042 |
Organization and Business Ope_2
Organization and Business Operations - Additional Information (Details) - USD ($) | Oct. 01, 2021 | Sep. 22, 2021 | May 03, 2019 | Oct. 25, 2016 | Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 28, 2019 | Jun. 30, 2021 | Dec. 31, 2020 |
Organization And Business Operations [Line Items] | ||||||||||
Issuance of common stock, shares | $ 8,000 | $ 10,000 | $ 24,262,000 | |||||||
Stock repurchase shares | 0 | |||||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | |||||||
Maximum | Share Repurchase Program | Forecast | ||||||||||
Organization And Business Operations [Line Items] | ||||||||||
Percentage of aggregate net asset value per month | 2.00% | |||||||||
Percentage of aggregate net asset value per quarter | 5.00% | |||||||||
Maximum | Initial Public Offering | ||||||||||
Organization And Business Operations [Line Items] | ||||||||||
Issuance of common stock, shares | $ 2,350,000,000 | |||||||||
Class P Common Stock | ||||||||||
Organization And Business Operations [Line Items] | ||||||||||
Shares issued, private offering | 10,258,094 | |||||||||
Gross proceeds from issuance of private offering | $ 276,681,000 | |||||||||
Class P Common Stock | Maximum | ||||||||||
Organization And Business Operations [Line Items] | ||||||||||
Shares issued value, private offering | $ 500,000,000 | |||||||||
Series A Preferred Stock | ||||||||||
Organization And Business Operations [Line Items] | ||||||||||
Liquidation preference per share | $ 25 | |||||||||
Series A Preferred Stock | Preferred Stock Offering | ||||||||||
Organization And Business Operations [Line Items] | ||||||||||
Preferred stock, shares issued | 3,500,000 | |||||||||
Percentage of cumulative redeemable preferred stock | 6.75% | |||||||||
Preferred stock, par value | $ 0.001 | |||||||||
Liquidation preference per share | $ 25 | |||||||||
Net proceeds after underwriter's discount and issuance costs | $ 84,046,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Cash and cash equivalents, description | Cash and cash equivalents include funds on deposit with financial institutions, including demand deposits with financial institutions with original maturities of three months or less. | |
Restricted cash current | $ 0 | $ 0 |
Commercial Mortgage Loans Hel_3
Commercial Mortgage Loans Held for Investment - Schedule of Commercial Mortgage Loans held for Investment (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021USD ($)Loan | Dec. 31, 2020USD ($)Loan | Dec. 31, 2019USD ($) | |
Mortgage Loans On Real Estate [Line Items] | |||
Number of Loans | Loan | 34 | 29 | |
Principal Balance | $ 521,264 | $ 441,696 | |
Unamortized (fees)/costs, net | 1,078 | 118 | |
Carrying Value | $ 522,342 | $ 441,814 | $ 504,702 |
Weighted Average Interest Rate | 5.20% | 5.50% | |
Weighted Average Years to Maturity | 1 year 6 months | 1 year 7 months 6 days | |
First Mortgage Loans [Member] | |||
Mortgage Loans On Real Estate [Line Items] | |||
Number of Loans | Loan | 31 | 26 | |
Principal Balance | $ 504,764 | $ 425,196 | |
Unamortized (fees)/costs, net | 1,078 | 118 | |
Carrying Value | $ 505,842 | $ 425,314 | |
Weighted Average Interest Rate | 5.00% | 5.30% | |
Weighted Average Years to Maturity | 1 year 4 months 24 days | 1 year 6 months | |
Credit Loans [Member] | |||
Mortgage Loans On Real Estate [Line Items] | |||
Number of Loans | Loan | 3 | 3 | |
Principal Balance | $ 16,500 | $ 16,500 | |
Carrying Value | $ 16,500 | $ 16,500 | |
Weighted Average Interest Rate | 9.50% | 9.50% | |
Weighted Average Years to Maturity | 4 years 1 month 6 days | 4 years 10 months 24 days |
Commercial Mortgage Loans Hel_4
Commercial Mortgage Loans Held for Investment - Schedule of Commercial Mortgage Loans held for Investment Portfolio (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Mortgage Loans On Real Estate [Abstract] | |||
Balance at Beginning of Year | $ 441,814 | $ 504,702 | $ 504,702 |
Loan originations | 149,068 | 69,135 | |
Principal repayments | (69,500) | (99,727) | |
Amortization of loan origination, loan extension and deferred exit fees | 1,191 | 1,818 | |
Sale of commercial loan | (10,000) | ||
Origination fees and extension fees received on commercial loans | (231) | ||
Provision for loan losses | $ (5,711) | (4,726) | |
Deferred interest capitalized on commercial loan | 386 | ||
Transfer on deed-in-lieu of foreclosure to real estate owned | (19,774) | ||
Balance at End of Period | $ 522,342 | $ 441,814 |
Commercial Mortgage Loans Hel_5
Commercial Mortgage Loans Held for Investment - Schedule of Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2020 | |
Mortgage Loans On Real Estate [Abstract] | ||
Provision for loan losses | $ (5,711) | $ (4,726) |
Charge-offs | $ 5,711 |
Commercial Mortgage Loans Hel_6
Commercial Mortgage Loans Held for Investment - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Apr. 30, 2020Loan | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)LoanRating | Sep. 30, 2020USD ($)Loan | Dec. 31, 2020LoanRating | |
Mortgage Loans On Real Estate [Line Items] | |||||
Interest income for impaired loans | $ | $ 0 | $ 465 | |||
Initial risk rating for commercial mortgage loans held for investment and real estate securities | Rating | 2 | 2 | |||
Number of loans risk rated two | 28 | 19 | |||
Number of loans risk rated three | 6 | 7 | |||
Number of loans risk rated four | 0 | 3 | |||
Number of loans risk rated one | 0 | 0 | |||
Number of loans risk rated five | 0 | 0 | |||
First Mortgage Loans [Member] | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Number of loans modification | 1 | ||||
First Mortgage Loans [Member] | Illinois [Member] | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Impairment charges on loans | $ | $ 5,711 | ||||
Number of loans impaired | 1 | ||||
First Mortgage Loans [Member] | Florida [Member] | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Provision for loan loss reversed | $ | 1,500 | ||||
Credit Loans [Member] | Florida [Member] | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Allowance for loan loss | $ | $ 1,500 | $ 0 | $ 1,500 |
Commercial Mortgage Loans Hel_7
Commercial Mortgage Loans Held for Investment - Summary of Investment Grade of Loans Loss (Details) - Commercial Mortgage Loans | 9 Months Ended |
Sep. 30, 2021 | |
Investment Grade One | |
Financing Receivable Recorded Investment [Line Items] | |
Description of Investment Grade | Investment exceeding fundamental performance expectations and/or capital gain expected. Trends and risk factors since time of investment are favorable. |
Investment Grade Two | |
Financing Receivable Recorded Investment [Line Items] | |
Description of Investment Grade | Performing consistent with expectations and a full return of principal and interest expected. Trends and risk factors are neutral to favorable. |
Investment Grade Three | |
Financing Receivable Recorded Investment [Line Items] | |
Description of Investment Grade | Performing investment requiring closer monitoring. Trends and risk factors show some deterioration. Collection of principal and interest is still expected. |
Investment Grade Four | |
Financing Receivable Recorded Investment [Line Items] | |
Description of Investment Grade | Underperforming investment with the potential of some interest loss but still expecting a positive return on investment. Trends and risk factors are negative. |
Investment Grade Five | |
Financing Receivable Recorded Investment [Line Items] | |
Description of Investment Grade | Underperforming investment with expected loss of interest and some principal. |
Real Estate Securities - Additi
Real Estate Securities - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2021 | Dec. 31, 2020 | |
Schedule Of Available For Sale Securities [Line Items] | ||||
Real estate securities sold | $ 96,453 | |||
Real Estate Securities | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Carrying value of investments | $ 0 | $ 0 | ||
Net unrealized loss | 5,710 | |||
Real estate securities sold | $ 52,525 | 96,453 | ||
Realized loss | $ 9,930 | $ 29,218 |
Repurchase Agreements and Cre_3
Repurchase Agreements and Credit Facilities - Additional Information (Details) - USD ($) | Mar. 10, 2021 | May 06, 2019 | Dec. 31, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Jun. 30, 2020 | Jan. 31, 2019 | Aug. 31, 2018 | Jun. 30, 2018 | Feb. 15, 2018 |
Commercial Mortgage Loans | London Interbank Offered Rate | Western Alliance Facility | ||||||||||
Repurchase Agreement [Line Items] | ||||||||||
LIBOR spread | 3.25% | |||||||||
Floor rate | 4.00% | |||||||||
CF Repo Facility | London Interbank Offered Rate | Minimum | Loan made on or after December 18, 2020 | ||||||||||
Repurchase Agreement [Line Items] | ||||||||||
LIBOR spread | 2.25% | |||||||||
Floor rate | 0.25% | |||||||||
CF Repo Facility | London Interbank Offered Rate | Maximum | Loan made on or after December 18, 2020 | ||||||||||
Repurchase Agreement [Line Items] | ||||||||||
LIBOR spread | 2.75% | |||||||||
Floor rate | 0.75% | |||||||||
CF Repo Facility | Commercial Mortgage Loans | ||||||||||
Repurchase Agreement [Line Items] | ||||||||||
Repurchase agreement, maximum advance amount | $ 300,000,000 | $ 250,000,000 | $ 250,000,000 | $ 175,000,000 | $ 250,000,000 | $ 100,000,000 | ||||
Extended maturity date | 2021-12 | 2021-02 | ||||||||
CF Repo Facility | Commercial Mortgage Loans | London Interbank Offered Rate | Loans made before December 18, 2020 | ||||||||||
Repurchase Agreement [Line Items] | ||||||||||
LIBOR spread | 2.25% | |||||||||
Floor rate | 0.75% | |||||||||
JP Morgan Repo Facility | Commercial Mortgage Loans | ||||||||||
Repurchase Agreement [Line Items] | ||||||||||
Repurchase agreement, maximum advance amount | $ 150,000,000 | |||||||||
Maturity date | May 6, 2022 | |||||||||
Line of credit facility successive term option to extension period, description | a one-year extension | |||||||||
JP Morgan Repo Facility | Commercial Mortgage Loans | London Interbank Offered Rate | Minimum | ||||||||||
Repurchase Agreement [Line Items] | ||||||||||
LIBOR spread | 1.75% | |||||||||
JP Morgan Repo Facility | Commercial Mortgage Loans | London Interbank Offered Rate | Maximum | ||||||||||
Repurchase Agreement [Line Items] | ||||||||||
LIBOR spread | 2.50% | |||||||||
Western Alliance Credit Facility | Commercial Mortgage Loans | ||||||||||
Repurchase Agreement [Line Items] | ||||||||||
Repurchase agreement, maximum advance amount | $ 75,000,000 | |||||||||
Maturity date | Mar. 10, 2023 | |||||||||
Borrowing base period for eligible pledged assets become ineligible | 36 months | |||||||||
Convertible by option term loan initial maturity period | 2 years | |||||||||
Percentage of conversion fee of convertible by option term loan. | 0.25% | |||||||||
Minimum average unrestricted aggregate deposit balance amount to be maintained | $ 3,750,000 | |||||||||
Increased interest rate due to failure to meet the minimum deposit balance | 0.25% | |||||||||
Western Alliance Credit Facility | Commercial Mortgage Loans | Minimum | ||||||||||
Repurchase Agreement [Line Items] | ||||||||||
Loan-to-unpaid balance percentage | 60.00% | |||||||||
Loan-to-appraised value percentage | 45.00% | |||||||||
Western Alliance Credit Facility | Commercial Mortgage Loans | Maximum | ||||||||||
Repurchase Agreement [Line Items] | ||||||||||
Loan-to-unpaid balance percentage | 70.00% | |||||||||
Loan-to-appraised value percentage | 50.00% |
Repurchase Agreements and Cre_4
Repurchase Agreements and Credit Facilities - Schedule of Outstanding Repurchase Agreements (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Repurchase Agreements and Credit Facility [Line Items] | ||
Accrued Interest Payable | $ 320 | $ 292 |
CF Repo Facility | Commercial Mortgage Loans | ||
Repurchase Agreements and Credit Facility [Line Items] | ||
Committed Financing | 250,000 | 250,000 |
Amount Outstanding | 203,239 | 159,948 |
Accrued Interest Payable | 199 | 187 |
Collateral Pledged | $ 288,473 | $ 228,359 |
Weighted Average Interest Rate | 2.70% | 3.00% |
Weighted Average Days to Maturity | 79 days | 352 days |
JPM Repo Facility | Commercial Mortgage Loans | ||
Repurchase Agreements and Credit Facility [Line Items] | ||
Committed Financing | $ 150,000 | $ 150,000 |
Amount Outstanding | 139,970 | 130,778 |
Accrued Interest Payable | 100 | 105 |
Collateral Pledged | $ 195,791 | $ 190,047 |
Weighted Average Interest Rate | 1.99% | 2.08% |
Weighted Average Days to Maturity | 218 days | 126 days |
Repo Facility | Commercial Mortgage Loans | ||
Repurchase Agreements and Credit Facility [Line Items] | ||
Committed Financing | $ 400,000 | $ 400,000 |
Amount Outstanding | 343,209 | 290,726 |
Accrued Interest Payable | 299 | 292 |
Collateral Pledged | $ 484,264 | $ 418,406 |
Weighted Average Interest Rate | 2.41% | 2.58% |
Weighted Average Days to Maturity | 136 days | 250 days |
Western Alliance Credit Facility | Commercial Mortgage Loans | ||
Repurchase Agreements and Credit Facility [Line Items] | ||
Committed Financing | $ 75,000 | |
Amount Outstanding | 14,350 | |
Accrued Interest Payable | 21 | |
Collateral Pledged | $ 20,500 | |
Weighted Average Interest Rate | 4.00% | |
Weighted Average Days to Maturity | 526 days | |
Facilities | Commercial Mortgage Loans | ||
Repurchase Agreements and Credit Facility [Line Items] | ||
Committed Financing | $ 475,000 | |
Amount Outstanding | 357,559 | |
Accrued Interest Payable | 320 | |
Collateral Pledged | $ 504,764 | |
Weighted Average Interest Rate | 2.48% | |
Weighted Average Days to Maturity | 151 days |
Repurchase Agreements and Cre_5
Repurchase Agreements and Credit Facilities - Schedule of Outstanding Repurchase Agreements (Parenthetical) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Commercial Mortgage Loans | Repo Facility | ||
Repurchase Agreements and Credit Facility [Line Items] | ||
Unamortized debt issuance costs | $ 29 | $ 27 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 22, 2021 | Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | Feb. 29, 2020 | Jan. 31, 2020 |
Class Of Stock [Line Items] | ||||||
Preferred stock, change of control, terms of conversion | Subject to certain exceptions, beginning on September 22, 2022, upon the occurrence of a Change of Control, each holder of shares of Series A Preferred Stock will have the right to convert some or all of the Series A Preferred Stock held by such holder into a number of the Company’s shares of Class I common stock as provided for in the Articles Supplementary. | |||||
Distributions payable | $ 1,166 | $ 1,166 | $ 867 | |||
Series A Preferred Stock | ||||||
Class Of Stock [Line Items] | ||||||
Liquidation preference per share | $ 25 | |||||
Preferred stock, redemption date | Sep. 22, 2026 | |||||
Preferred stock, redemption price per share | $ 25 | |||||
Percentage of dividend rate | 6.75% | |||||
Dividend cash paid | $ 1.6875 | |||||
Distributions declared | $ 0 | |||||
Class P Common Stock | ||||||
Class Of Stock [Line Items] | ||||||
Gross monthly distribution amount | $ 0.16 | $ 0.16 | ||||
Annualized gross distribution per share | 1.92 | 1.92 | ||||
Class A Common Stock | ||||||
Class Of Stock [Line Items] | ||||||
Gross monthly distribution amount | 0.135 | 0.135 | ||||
Annualized gross distribution per share | 1.62 | 1.62 | ||||
Class T Common Stock | ||||||
Class Of Stock [Line Items] | ||||||
Gross monthly distribution amount | 0.135 | 0.135 | ||||
Annualized gross distribution per share | 1.62 | 1.62 | ||||
Class D Common Stock | ||||||
Class Of Stock [Line Items] | ||||||
Gross monthly distribution amount | 0.135 | 0.135 | ||||
Annualized gross distribution per share | 1.62 | 1.62 | ||||
Class I Common Stock | ||||||
Class Of Stock [Line Items] | ||||||
Gross monthly distribution amount | 0.135 | 0.135 | ||||
Annualized gross distribution per share | $ 1.62 | $ 1.62 | ||||
Preferred Stock Offering | Series A Preferred Stock | ||||||
Class Of Stock [Line Items] | ||||||
Preferred stock, shares issued | 3,500,000 | |||||
Offered price | $ 25 | |||||
Net proceeds after underwriter's discount and issuance costs | $ 84,046 | |||||
Option to purchase additional shares for underwriters, number of days | 30 days | |||||
Percentage of cumulative redeemable preferred stock | 6.75% | |||||
Liquidation preference per share | $ 25 | |||||
Over-Allotment | Series A Preferred Stock | ||||||
Class Of Stock [Line Items] | ||||||
Additional shares issued to cover over-allotments | 525,000 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Change in Outstanding Shares Including Restricted Common Stock (Details) - shares | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Series A Preferred Stock | ||
Class Of Stock [Line Items] | ||
Issuance of shares | 3,500,000 | |
Ending balance | 3,500,000 | |
Class P Common Stock | ||
Class Of Stock [Line Items] | ||
Beginning balance | 10,151,787 | 10,182,305 |
Redemptions | (387,377) | (30,518) |
Ending balance | 9,764,410 | 10,151,787 |
Class A Common Stock | ||
Class Of Stock [Line Items] | ||
Beginning balance | 655,835 | 272,006 |
Issuance of shares | 379,250 | |
Distribution reinvestment | 8,016 | 2,310 |
Redemptions | (9,373) | |
Ending balance | 654,478 | 653,566 |
Class T Common Stock | ||
Class Of Stock [Line Items] | ||
Beginning balance | 398,233 | 121,718 |
Issuance of shares | 274,570 | |
Distribution reinvestment | 4,125 | 963 |
Redemptions | (2,862) | |
Ending balance | 399,496 | 397,251 |
Class S Common Stock | ||
Class Of Stock [Line Items] | ||
Beginning balance | 0 | |
Ending balance | 0 | |
Class D Common Stock | ||
Class Of Stock [Line Items] | ||
Beginning balance | 50,393 | 41,538 |
Issuance of shares | 8,066 | |
Distribution reinvestment | 1,263 | 477 |
Redemptions | (4,843) | |
Ending balance | 46,813 | 50,081 |
Class I Common Stock | ||
Class Of Stock [Line Items] | ||
Beginning balance | 381,955 | 100,743 |
Issuance of shares | 480 | 276,250 |
Distribution reinvestment | 7,404 | 1,309 |
Redemptions | (6,379) | |
Ending balance | 383,460 | 378,302 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Aggregate Annualized and Monthly Distributions Declared by Record Date for all Classes of Shares (Details) - $ / shares | 1 Months Ended | ||||||||||||||
Sep. 30, 2021 | Aug. 31, 2021 | Jul. 31, 2021 | Jun. 30, 2021 | May 31, 2021 | Apr. 30, 2021 | Mar. 31, 2021 | Feb. 28, 2021 | Jan. 31, 2021 | Dec. 31, 2020 | Nov. 30, 2020 | Oct. 31, 2020 | Sep. 30, 2020 | Aug. 31, 2020 | Jul. 31, 2020 | |
Class Of Stock [Line Items] | |||||||||||||||
Record date | Sep. 30, 2021 | Aug. 31, 2021 | Jul. 31, 2021 | Jun. 30, 2021 | May 31, 2021 | Apr. 30, 2021 | Mar. 31, 2021 | Feb. 28, 2021 | Jan. 31, 2021 | Dec. 31, 2020 | Nov. 30, 2020 | Oct. 31, 2020 | Sep. 30, 2020 | Aug. 31, 2020 | Jul. 31, 2020 |
Aggregate Annualized Gross Dividend Declared | |||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||
Aggregate gross distribution declared per share | $ 1.2500 | $ 1.2500 | $ 1.2500 | $ 1.2500 | $ 1.1500 | $ 1.1000 | $ 1.0500 | $ 1 | $ 0.9500 | $ 0.9000 | $ 0.9000 | $ 0.9000 | $ 0.9000 | $ 0.8800 | $ 0.8576 |
Aggregate Monthly Gross Dividend Declared | |||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||
Aggregate gross distribution declared per share | $ 0.1042 | $ 0.1042 | $ 0.1042 | $ 0.1042 | $ 0.0958 | $ 0.0917 | $ 0.0875 | $ 0.0833 | $ 0.0792 | $ 0.0750 | $ 0.0750 | $ 0.0750 | $ 0.0750 | $ 0.0733 | $ 0.0715 |
Stockholders' Equity - Schedu_3
Stockholders' Equity - Schedule of Aggregate and Net Distributions Declared for Applicable Class of Common Stock (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Class P Common Stock | ||
Distributions Declared [Line Items] | ||
Aggregate gross distributions declared per share | $ 0.8543 | $ 0.5398 |
Net distributions declared per share | 0.8543 | 0.5398 |
Class A Common Stock | ||
Distributions Declared [Line Items] | ||
Aggregate gross distributions declared per share | 0.8543 | 0.4898 |
Net distributions declared per share | 0.8543 | 0.4898 |
Class T Common Stock | ||
Distributions Declared [Line Items] | ||
Aggregate gross distributions declared per share | 0.8543 | 0.4898 |
Stockholder servicing fee per share | 0.1287 | 0.0809 |
Net distributions declared per share | 0.7256 | 0.4089 |
Class D Common Stock | ||
Distributions Declared [Line Items] | ||
Aggregate gross distributions declared per share | 0.8543 | 0.4898 |
Stockholder servicing fee per share | 0.0379 | 0.0237 |
Net distributions declared per share | 0.8164 | 0.4661 |
Class I Common Stock | ||
Distributions Declared [Line Items] | ||
Aggregate gross distributions declared per share | 0.8543 | 0.4898 |
Net distributions declared per share | $ 0.8543 | $ 0.4898 |
Net Income (Loss) Per Share - A
Net Income (Loss) Per Share - Additional information (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Antidilutive restricted shares | 0 | 0 | 41 | 285 |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Summary of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) attributable to common stockholders | $ 2,462 | $ 6,056 | $ 7,125 | $ (30,796) |
Weighted average shares outstanding, basic | 11,433,665 | 11,630,987 | 11,570,868 | 11,537,483 |
Dilutive effect of restricted stock | 640 | 444 | 263 | |
Weighted average shares outstanding, diluted | 11,434,305 | 11,631,431 | 11,571,131 | 11,537,483 |
Net income (loss) attributable to common stockholders per share basic and diluted | $ 0.22 | $ 0.52 | $ 0.62 | $ (2.67) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Thousands | Sep. 30, 2021USD ($)Loan | Dec. 31, 2020USD ($)Loan |
Commitments And Contingencies Disclosure [Abstract] | ||
Number of commercial real estate loans | Loan | 26 | 20 |
Commercial real estate, remaining future funding commitment | $ | $ 67,563 | $ 50,940 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) - Segment | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting [Abstract] | ||
Number of reportable segment | 1 | 1 |
Transactions with Related Par_3
Transactions with Related Parties - Additional Information (Details) | Jul. 20, 2021USD ($) | Jul. 15, 2021USD ($) | Nov. 30, 2016USD ($)$ / sharesshares | Sep. 30, 2021USD ($)shares | Sep. 30, 2020USD ($) | Dec. 31, 2020shares |
Related Party Transaction [Line Items] | ||||||
Proceeds from issuance of common stock | $ 10,000 | $ 24,261,000 | ||||
Expense Limitation Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Annualized ordinary operating expenses of quarter to extent expenses do not exceed average monthly net assets percentage | 1.5 | |||||
Annualized basis expense limit percentage | 1.50% | |||||
Reimbursement of expenses payable term | 3 years | |||||
Waive reimbursement on quarterly basis terms | waive reimbursement of or pay, on a quarterly basis, certain of the Company’s ordinary operating expenses for each class of shares to the extent necessary to ensure that the ordinary operating expenses do not exceed 1.5% of the average monthly net assets on an annualized basis (the “1.5% Expense Limit”). Amounts waived or paid by the Advisor or Sub-Advisor pursuant to the Expense Limitation Agreement are subject to conditional repayment on a quarterly basis by the Company during the three years following the quarter in which the expenses were incurred, but only to the extent such repayment does not cause the Company to exceed its then-current expenses limitation, if any, for such quarter. Any waiver or reimbursement by the Advisor or Sub-Advisor not repaid by the Company within the three-year period will be deemed permanently waived and not subject to repayment under the Expense Limitation Agreement. During the three months ended September 30, 2021, the amounts of ordinary operating expenses either submitted for reimbursement by the Advisor and Sub-Advisor or incurred by the Company directly that were subject to the Expense Limitation Agreement did not exceed the 1.5% Expense Limit. | |||||
Expense Limitation Agreement | Maximum | ||||||
Related Party Transaction [Line Items] | ||||||
Reimbursement of expenses payable term | 3 years | |||||
Class P Common Stock | ||||||
Related Party Transaction [Line Items] | ||||||
Common stock, shares, issued | shares | 9,764,410 | 10,151,787 | ||||
Advisor | Class P Common Stock | ||||||
Related Party Transaction [Line Items] | ||||||
Proceeds from issuance of common stock | $ 1,000,000 | |||||
Common stock, shares, issued | shares | 40,040 | |||||
Common stock, purchase price per share | $ / shares | $ 25 | |||||
Payment of selling commissions | $ 0 | |||||
Payment of dealer manager fees | 0 | |||||
Payment of organization and offering expenses | 0 | |||||
Subscription agreement, minimum number of shares to be held | shares | 8,000 | |||||
Subscription agreement, value of minimum number of shares to be held | $ 200,000 | |||||
Description of subscription agreement | The Advisor has agreed pursuant to its subscription agreement that, for so long as it or its affiliate is serving as the Company’s advisor, (i) it will not sell or transfer at least 8,000 of the Class P shares that it has purchased, accounting for $200 of its investment, to an unaffiliated third party; (ii) it will not be eligible to submit a request for these 40,040 Class P shares pursuant to the SRP prior to the fifth anniversary of the date on which such Class P shares were purchased (November 2021); and (iii) repurchase requests made for these Class P shares will only be accepted (a) on the last business day of a calendar quarter, (b) after all repurchase requests from all other stockholders for such quarter have been accepted and (c) to the extent that such repurchases do not cause total repurchases in the quarter in which they are being repurchased to exceed that quarter’s repurchase cap | |||||
Sub-Advisor | Class P Common Stock | ||||||
Related Party Transaction [Line Items] | ||||||
Proceeds from issuance of common stock | $ 3,000,000 | |||||
Common stock, shares, issued | shares | 120,000 | |||||
Common stock, purchase price per share | $ / shares | $ 25 | |||||
Payment of selling commissions | $ 0 | |||||
Payment of dealer manager fees | 0 | |||||
Payment of organization and offering expenses | $ 0 | |||||
Description of subscription agreement | Sound Point has agreed pursuant to its subscription agreement that, for so long as the Sub-Advisor or its affiliate is serving as the Company’s sub-advisor, (i) it will not be eligible to submit a request for the repurchase of these 120,000 Class P shares pursuant to the SRP prior to the fifth anniversary of the date on which such Class P shares were purchased (November 2021); and (ii) repurchase requests made for these Class P shares will only be accepted (a) on the last business day of a calendar quarter, (b) after all repurchase requests from all other stockholders for such quarter have been accepted and (c) to the extent that such repurchases do not cause total repurchases in the quarter in which they are being repurchased to exceed that quarter’s repurchase cap. | |||||
Inland Real Estate Investment Corporation | Revolving Credit Liquidity Letter Agreements | ||||||
Related Party Transaction [Line Items] | ||||||
Number of days notice of termination prior to maturity date of agreement | 60 days | 60 days | ||||
Fixed interest rate | 6.00% | 6.00% | ||||
Inland Real Estate Investment Corporation | Revolving Credit Liquidity Letter Agreements | Maximum | ||||||
Related Party Transaction [Line Items] | ||||||
Aggregate principal amount outstanding | $ 5,000,000 | $ 15,000,000 | ||||
Inland Real Estate Investment Corporation | Revolving Credit Liquidity Letter Agreements | Minimum | ||||||
Related Party Transaction [Line Items] | ||||||
Stockholders equity balance to trigger termination of liquidity letter agreements | $ 500,000,000 | $ 500,000,000 |
Transactions with Related Par_4
Transactions with Related Parties - Summary of Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||||
Advisory fee | $ 771 | $ 1,572 | $ 2,245 | $ 3,973 | |
Accrued stockholder servicing fee | (49) | 420 | |||
Total, payable | 2,225 | 2,225 | $ 2,093 | ||
Advisor, Sub-Advisor and Dealer Manager | |||||
Related Party Transaction [Line Items] | |||||
Organization and offering expense reimbursement | 22 | 22 | 70 | ||
Selling commissions and dealer manager fee | 758 | ||||
Advisory fee | 771 | 1,572 | 2,245 | 3,973 | |
Loan fees | 270 | 137 | 2,469 | 1,230 | |
Accrued stockholder servicing fee | 446 | ||||
Operating expense reimbursement to advisor | 63 | 78 | |||
Total | 1,126 | $ 1,709 | 4,814 | $ 6,477 | |
Organization and offering expense reimbursement, payable | 22 | 22 | |||
Advisory fee, payable | 283 | 283 | 507 | ||
Loan fees, payable | 1,254 | 1,254 | 912 | ||
Accrued stockholder servicing fee, payable | 625 | 625 | 674 | ||
Operating expense reimbursement to advisor, payable | 41 | 41 | |||
Total, payable | $ 2,225 | $ 2,225 | $ 2,093 |
Transactions with Related Par_5
Transactions with Related Parties - Summary of Related Party Transactions (Parenthetical) (Details) - Advisor - USD ($) $ in Thousands | Jul. 01, 2021 | Jul. 16, 2019 | Jun. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2021 |
Related Party Transaction [Line Items] | |||||
Maximum percentage of gross proceeds from issuance of initial public offering | 15.00% | ||||
Percentage of gross value of assets, paid monthly | 0.104% | ||||
Percentage of excess total return | 20.00% | ||||
Fixed component of advisory fees waived | $ 1,475 | ||||
Percentage of fixed component of advisory fees waived | 50.00% | ||||
Class T Common Stock | |||||
Related Party Transaction [Line Items] | |||||
Percentage of stockholder servicing fees on net asset value | 0.85% | ||||
Class S Common Stock | |||||
Related Party Transaction [Line Items] | |||||
Aggregate percentage of stockholder servicing fees on net asset value | 0.85% | ||||
Class D and Class I Common Stock | |||||
Related Party Transaction [Line Items] | |||||
Percentage of upfront selling commission | 0.00% | ||||
Percentage of upfront dealer manager fee | 0.00% | ||||
Class D Common Stock | |||||
Related Party Transaction [Line Items] | |||||
Aggregate percentage of stockholder servicing fees on net asset value | 0.25% | ||||
Initial Public Offering | Class T Common Stock | |||||
Related Party Transaction [Line Items] | |||||
Percentage of upfront dealer manager fee | 0.50% | ||||
Maximum | |||||
Related Party Transaction [Line Items] | |||||
Percentage of net asset value of assets, paid monthly | 0.208% | ||||
Percentage of aggregate total return | 15.00% | ||||
Maximum | Private Offering | Class P Common Stock | |||||
Related Party Transaction [Line Items] | |||||
Percentage of selling commission | 5.00% | ||||
Percentage of dealer manager fee | 3.00% | ||||
Maximum | Initial Public Offering | Class A Common Stock | |||||
Related Party Transaction [Line Items] | |||||
Percentage of upfront selling commission | 6.00% | ||||
Percentage of upfront dealer manager fee | 1.25% | ||||
Percentage of participation dealers fee | 7.25% | ||||
Maximum | Initial Public Offering | Class T Common Stock | |||||
Related Party Transaction [Line Items] | |||||
Percentage of upfront selling commission | 3.00% | ||||
Percentage of participation dealers fee | 3.50% | ||||
Maximum | Initial Public Offering | Class S Common Stock | |||||
Related Party Transaction [Line Items] | |||||
Percentage of upfront selling commission | 3.50% | ||||
Minimum | |||||
Related Party Transaction [Line Items] | |||||
Minimum percentage to earn performance component of advisory fee | 7.00% |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Details) - Restricted Shares $ / shares in Units, $ in Thousands | Dec. 01, 2020USD ($)Director$ / sharesshares | Dec. 02, 2019USD ($)Director$ / sharesshares | Jan. 07, 2019USD ($)Director$ / sharesshares | Mar. 01, 2018USD ($)Director$ / sharesshares | Sep. 30, 2021USD ($)shares | Sep. 30, 2020USD ($)shares | Sep. 30, 2021USD ($)shares | Sep. 30, 2020USD ($) |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Vested shares | 800 | |||||||
RSP | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Fair value of restricted shares at vesting date | $ | $ 16 | $ 17 | ||||||
Vested shares | 0 | 0 | ||||||
RSP | Independent Directors | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Vesting period | 3 years | |||||||
Compensation expense | $ | $ 7 | $ 8 | $ 24 | $ 23 | ||||
Unrecognized compensation cost | $ | $ 36 | $ 36 | ||||||
Weighted average remaining period that compensation expense recognizable | 10 months 24 days | |||||||
Class P Common Stock | RSP | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of independent directors | Director | 3 | 3 | ||||||
Grant date fair value of restricted shares | $ / shares | $ 25 | $ 25 | ||||||
Combined fair value of restricted shares | $ | $ 30 | $ 30 | ||||||
Restricted shares description | These restricted Class P shares vest in equal one-third increments on January 7, 2020, 2021 and 2022 | These restricted Class P shares vested in equal one-third increments on March 1, 2019, 2020 and 2021 | ||||||
Class P Common Stock | RSP | Year 1 | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Restricted shares award vest percentage | 33.33% | 33.33% | ||||||
Class P Common Stock | RSP | Year 2 | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Restricted shares award vest percentage | 33.33% | 33.33% | ||||||
Class P Common Stock | RSP | Year 3 | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Restricted shares award vest percentage | 33.33% | 33.33% | ||||||
Class P Common Stock | RSP | Independent Director One | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of restricted shares | 400 | 400 | ||||||
Class P Common Stock | RSP | Independent Director Two | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of restricted shares | 400 | 400 | ||||||
Class P Common Stock | RSP | Independent Director Three | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of restricted shares | 400 | 400 | ||||||
Class P Common Stock | RSP | Independent Directors | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of restricted shares | 1,200 | 1,200 | ||||||
Class I Common Stock | RSP | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of independent directors | Director | 3 | 3 | ||||||
Grant date fair value of restricted shares | $ / shares | $ 21.54 | $ 25.07 | ||||||
Combined fair value of restricted shares | $ | $ 30 | $ 30 | ||||||
Restricted shares description | The restricted Class I shares will vest in equal one-third increments on December 1, 2021, 2022 and 2023. | The restricted Class I shares vest in equal one-third increments on December 2, 2020, 2021 and 2022 | ||||||
Class I Common Stock | RSP | Year 1 | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Restricted shares award vest percentage | 33.33% | 33.33% | ||||||
Class I Common Stock | RSP | Year 2 | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Restricted shares award vest percentage | 33.33% | 33.33% | ||||||
Class I Common Stock | RSP | Year 3 | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Restricted shares award vest percentage | 33.33% | 33.33% | ||||||
Class I Common Stock | RSP | Independent Director One | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of restricted shares | 464 | 399 | ||||||
Class I Common Stock | RSP | Independent Director Two | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of restricted shares | 464 | 399 | ||||||
Class I Common Stock | RSP | Independent Director Three | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of restricted shares | 464 | 399 | ||||||
Class I Common Stock | RSP | Independent Directors | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of restricted shares | 1,393 | 1,197 |
Equity-Based Compensation - Sum
Equity-Based Compensation - Summary of the Restricted Shares (Details) - Restricted Shares | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding beginning balance, Shares | shares | 3,391 |
Vested, Shares | shares | (800) |
Outstanding ending balance, Shares | shares | 2,591 |
Outstanding beginning balance, Weighted average grant date fair value per share | $ / shares | $ 23.59 |
Vested, Weighted average grant date fair value per share | $ / shares | 25 |
Outstanding ending balance, Weighted average grant date fair value per share | $ / shares | $ 23.16 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Schedule of Carrying Amount and Estimated Fair Value of Company's Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Carrying Amount | ||
Financial assets | ||
Cash and cash equivalents | $ 134,837 | $ 72,107 |
Commercial mortgage loans, net | 522,342 | 441,814 |
Total | 657,179 | 513,921 |
Financial liabilities | ||
Credit facility payable | 14,350 | |
Total | 357,530 | 290,699 |
Carrying Amount | Commercial Mortgage Loans | ||
Financial liabilities | ||
Repurchase agreements | 343,180 | 290,699 |
Estimated Fair Value | ||
Financial assets | ||
Cash and cash equivalents | 134,837 | 72,107 |
Commercial mortgage loans, net | 524,847 | 441,267 |
Total | 659,684 | 513,374 |
Financial liabilities | ||
Credit facility payable | 14,350 | |
Total | 357,530 | 290,699 |
Estimated Fair Value | Commercial Mortgage Loans | ||
Financial liabilities | ||
Repurchase agreements | $ 343,180 | $ 290,699 |
Real Estate Owned - Schedule of
Real Estate Owned - Schedule of Company's REO Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2021 | Dec. 31, 2020 | ||
Real Estate [Line Items] | |||
Real Estate Owned, Net | $ 31,724 | $ 32,474 | |
Hotel | Chicago, IL | |||
Real Estate [Line Items] | |||
Acquisition Date | [1],[2] | 2020-08 | |
Building and Improvements | $ 26,683 | ||
Furniture, Fixtures and Equipment | 6,262 | ||
Accumulated Depreciation | (1,221) | ||
Real Estate Owned, Net | $ 31,724 | ||
[1] | Refer to “Note 2 – Summary of Significant Accounting Policies” in the Annual Report for useful life of the above assets. | ||
[2] | Represents assets acquired by the Company by completing a deed-in-lieu of foreclosure transaction. |
Real Estate Owned - Additional
Real Estate Owned - Additional Information (Details) - Paycheck Protection Program | 1 Months Ended | |
Feb. 28, 2021USD ($)Room | Sep. 30, 2021USD ($) | |
Real Estate [Line Items] | ||
Loans amount | $ 1,093,000 | |
Loan term | 5 years | |
Fixed interest rate | 1.00% | |
Accrued expenses | $ 0 | |
Chicago, IL | ||
Real Estate [Line Items] | ||
Number of hotel room | Room | 362 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2021 | Dec. 31, 2020 | Aug. 20, 2020 | |
Leases [Abstract] | |||
Lessee finance lease description | The Company is the lessee under one ground lease. The ground lease, which commenced on April 1, 1999, was assumed as part of the Renaissance O’Hare acquired through a deed-in-lieu of foreclosure transaction on August 20, 2020 and extends through March 31, 2098. The lease is classified as a finance lease. Under the ground lease, the Company is prohibited from mortgaging the land but is not prohibited from making a leasehold mortgage for property constructed on the land. The Company may terminate the lease as of March 31, 2049, March 31, 2065 and March 31, 2081 provided that twelve months’ notice is provided to the lessor prior to those respective dates. | ||
Finance lease, commencement date | Apr. 1, 1999 | ||
Finance lease, expiration date | Mar. 31, 2098 | ||
Finance lease liability | $ 17,023 | $ 16,790 | $ 16,827 |
Finance lease, right-of-use asset | $ 5,549 | $ 5,549 | $ 5,549 |
Finance lease liability, interest rate | 11.37% | ||
Lessee finance lease termination description | Company may terminate the lease as of March 31, 2049, March 31, 2065 and March 31, 2081 |
Leases - Summary of Finance Lea
Leases - Summary of Finance Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Leases [Abstract] | ||||
Amortization of right-of-use assets | $ 18 | $ 6 | $ 53 | $ 6 |
Interest on lease liabilities | 482 | 158 | 1,440 | 158 |
Total finance lease cost | $ 500 | $ 164 | $ 1,493 | $ 164 |
Leases - Schedule of Finance Le
Leases - Schedule of Finance Lease Right of Use Asset, Net of Amortization (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Aug. 20, 2020 |
Leases [Abstract] | |||
Finance lease right of use asset, gross | $ 5,549 | $ 5,549 | $ 5,549 |
Accumulated amortization | (77) | (24) | |
Finance lease right of use asset, net of amortization | $ 5,472 | $ 5,525 |
Leases - Schedule of Remaining
Leases - Schedule of Remaining Lease Payments for the Ground Lease (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Aug. 20, 2020 |
Leases [Abstract] | |||
2021 (remaining) | $ 403 | ||
2022 | 1,611 | ||
2023 | 1,611 | ||
2024 | 1,745 | ||
2025 | 1,772 | ||
Thereafter | 271,457 | ||
Total undiscounted lease payments | 278,599 | ||
Less: Amount representing interest | (261,576) | ||
Present value of lease liability | $ 17,023 | $ 16,790 | $ 16,827 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ in Thousands | Oct. 28, 2021 | Oct. 15, 2021 | Sep. 22, 2021 | Sep. 30, 2021 | Aug. 31, 2021 | Jul. 31, 2021 | Jun. 30, 2021 | May 31, 2021 | Apr. 30, 2021 | Mar. 31, 2021 | Feb. 28, 2021 | Jan. 31, 2021 | Dec. 31, 2020 | Nov. 30, 2020 | Oct. 31, 2020 | Sep. 30, 2020 | Aug. 31, 2020 | Jul. 31, 2020 |
Subsequent Event [Line Items] | ||||||||||||||||||
Record date | Sep. 30, 2021 | Aug. 31, 2021 | Jul. 31, 2021 | Jun. 30, 2021 | May 31, 2021 | Apr. 30, 2021 | Mar. 31, 2021 | Feb. 28, 2021 | Jan. 31, 2021 | Dec. 31, 2020 | Nov. 30, 2020 | Oct. 31, 2020 | Sep. 30, 2020 | Aug. 31, 2020 | Jul. 31, 2020 | |||
Over-Allotment | Series A Preferred Stock | ||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||
Additional shares issued to cover over-allotments | 525,000 | |||||||||||||||||
Subsequent Event | Series A Preferred Stock | Raymond James & Associates, Inc. | ||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||
Net proceeds after underwriter's discount and issuance costs | $ 2,421 | |||||||||||||||||
Subsequent Event | Over-Allotment | Series A Preferred Stock | Raymond James & Associates, Inc. | ||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||
Additional shares issued to cover over-allotments | 100,000 | |||||||||||||||||
Subsequent Event | Common Stock | ||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||
Record date | Oct. 31, 2021 | |||||||||||||||||
Dividends declared date | Oct. 28, 2021 | |||||||||||||||||
Distributions payable date | Nov. 17, 2021 |
Subsequent Events - Schedule of
Subsequent Events - Schedule of Authorized Distributions for Class of Common Stock (Details) - $ / shares | Oct. 28, 2021 | Sep. 30, 2021 | Sep. 30, 2020 |
Class P Common Stock | |||
Subsequent Event [Line Items] | |||
Aggregate gross distributions declared per share | $ 0.8543 | $ 0.5398 | |
Class A Common Stock | |||
Subsequent Event [Line Items] | |||
Aggregate gross distributions declared per share | 0.8543 | 0.4898 | |
Class T Common Stock | |||
Subsequent Event [Line Items] | |||
Aggregate gross distributions declared per share | 0.8543 | 0.4898 | |
Stockholder servicing fee per share | 0.1287 | 0.0809 | |
Class D Common Stock | |||
Subsequent Event [Line Items] | |||
Aggregate gross distributions declared per share | 0.8543 | 0.4898 | |
Stockholder servicing fee per share | 0.0379 | 0.0237 | |
Class I Common Stock | |||
Subsequent Event [Line Items] | |||
Aggregate gross distributions declared per share | $ 0.8543 | $ 0.4898 | |
Subsequent Event | Class P Common Stock | |||
Subsequent Event [Line Items] | |||
Aggregate gross distributions declared per share | $ 0.1042 | ||
Net distributions declared per share | 0.1042 | ||
Subsequent Event | Class A Common Stock | |||
Subsequent Event [Line Items] | |||
Aggregate gross distributions declared per share | 0.1042 | ||
Net distributions declared per share | 0.1042 | ||
Subsequent Event | Class T Common Stock | |||
Subsequent Event [Line Items] | |||
Aggregate gross distributions declared per share | 0.1042 | ||
Stockholder servicing fee per share | 0.0147 | ||
Net distributions declared per share | 0.0895 | ||
Subsequent Event | Class D Common Stock | |||
Subsequent Event [Line Items] | |||
Aggregate gross distributions declared per share | 0.1042 | ||
Stockholder servicing fee per share | 0.0043 | ||
Net distributions declared per share | 0.0999 | ||
Subsequent Event | Class I Common Stock | |||
Subsequent Event [Line Items] | |||
Aggregate gross distributions declared per share | 0.1042 | ||
Net distributions declared per share | $ 0.1042 |