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v3.23.1

Loans Held for Investment, net (Tables) | 3 Months Ended
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Mar. 31, 2023
Receivables [Abstract] |
Schedule of Loans | The table below provides overall statistics for our loan portfolio as of March 31, 2023 and December 31, 2022:
|  | As of March 31, 2023 |  | As of December 31, 2022
Number of loans |  | 25 |  | 27
Total loan commitments |  | $ | 674,475 |  | $ | 727,562
Unfunded loan commitments (1) |  | $ | 45,779 |  | $ | 49,007
Principal balance |  | $ | 628,696 |  | $ | 678,555
Carrying value |  | $ | 617,935 |  | $ | 669,929
Weighted average coupon rate |  | 8.57 | % |  | 8.07 | %
Weighted average all in yield (2) |  | 9.06 | % |  | 8.57 | %
Weighted average floor |  | 0.65 | % |  | 0.62 | %
Weighted average maximum maturity (years) (3) |  | 3.1 |  | 3.3
Weighted average risk rating |  | 2.9 |  | 2.9
(1)Unfunded loan commitments are primarily used to finance property improvements and leasing capital and are generally funded over the term of the loan. (2)All in yield represents the yield on a loan, including amortization of deferred fees over the initial term of the loan and excluding any purchase discount accretion. (3) Maximum maturity assumes all borrower loan extension options have been exercised, which options are subject to the borrower meeting certain conditions. The tables below represent our loan activities during the three months ended March 31, 2023 and 2022:
|  | Principal Balance |  | Deferred Fees and Other Items |  | Amortized Cost
Balance at December 31, 2022 |  | $ | 678,555 |  |  | $ | (8,626) |  |  | $ | 669,929 |
Additional funding |  | 1,884 |  |  | (14) |  |  | 1,870 |
Repayments |  | (51,743) |  |  | (175) |  |  | (51,918) |
Net amortization of deferred fees |  | — |  |  | 1,004 |  |  | 1,004 |
Purchase discount accretion |  | — |  |  | 1,185 |  |  | 1,185 |
Balance at March 31, 2023 |  | $ | 628,696 |  |  | $ | (6,626) |  |  | $ | 622,070 |
|  | Principal Balance |  | Deferred Fees and Other Items |  | Amortized Cost
Balance at December 31, 2021 |  | $ | 590,590 |  |  | $ | (19,810) |  |  | $ | 570,780 |
Additional funding |  | 3,304 |  |  | — |  |  | 3,304 |
Originations |  | 91,184 |  |  | (1,148) |  |  | 90,036 |
Repayments |  | (48,247) |  |  | — |  |  | (48,247) |
Net amortization of deferred fees |  | — |  |  | 902 |  |  | 902 |
Purchase discount accretion |  | — |  |  | 5,935 |  |  | 5,935 |
Balance at March 31, 2022 |  | $ | 636,831 |  |  | $ | (14,121) |  |  | $ | 622,710 |
The tables below detail the property type and geographic location of the properties securing the loans in our portfolio as of March 31, 2023 and December 31, 2022:
|  | March 31, 2023 |  | December 31, 2022
Property Type |  | Number of Loans |  | Amortized Cost |  | Percentage of Value |  | Number of Loans |  | Amortized Cost |  | Percentage of Value
Office (1) |  | 10 |  | $ | 244,302 |  |  | 39 | % |  | 11 |  | $ | 252,796 |  |  | 38 | %
Multifamily |  | 8 |  | 198,390 |  |  | 32 | % |  | 8 |  | 197,229 |  |  | 29 | %
Retail |  | 4 |  | 110,037 |  |  | 18 | % |  | 4 |  | 109,248 |  |  | 16 | %
Industrial (1) |  | 3 |  | 69,341 |  |  | 11 | % |  | 4 |  | 110,656 |  |  | 17 | %
|  | 25 |  | $ | 622,070 |  |  | 100 | % |  | 27 |  | $ | 669,929 |  |  | 100 | %
(1) As of December 31, 2022, one loan investment secured by a mixed use property consisting of office space and an industrial warehouse in Aurora, IL was classified as office for the purpose of counting the number of loans in our portfolio because the majority of the square footage of the property consisted of office space. The amortized cost of this loan investment was reflected in office and industrial based on the fair value of the building at the time of origination relative to the total fair value of the property. During the three months ended March 31, 2023, our loan investment in Aurora, IL was repaid.
|  | March 31, 2023 |  | December 31, 2022
Geographic Location |  | Number of Loans |  | Amortized Cost |  | Percentage of Value |  | Number of Loans |  | Amortized Cost |  | Percentage of Value
Midwest |  | 8 |  | $ | 235,289 |  |  | 38 | % |  | 9 |  | $ | 251,208 |  |  | 37 | %
West |  | 8 |  | 148,085 |  |  | 24 | % |  | 8 |  | 146,837 |  |  | 22 | %
South |  | 5 |  | 133,243 |  |  | 21 | % |  | 6 |  | 166,616 |  |  | 25 | %
East |  | 4 |  | 105,453 |  |  | 17 | % |  | 4 |  | 105,268 |  |  | 16 | %
|  | 25 |  | $ | 622,070 |  |  | 100 | % |  | 27 |  | $ | 669,929 |  |  | 100 | %
Schedule of Carrying Value Excluding Allowance of Credit Losses | As of March 31, 2023 and December 31, 2022, the amortized cost of our loan portfolio within each internal risk rating by year of origination was as follows:
March 31, 2023
Risk Rating |  | Number of Loans |  | Percentage of Portfolio |  | 2023 |  | 2022 |  | 2021 |  | Prior |  | Total
1 |  | 1 |  | 2 | % |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 9,496 |  |  | $ | 9,496 |
2 |  | 5 |  | 20 | % |  | — |  |  | 41,952 |  |  | 31,483 |  |  | 52,289 |  |  | 125,724 |
3 |  | 16 |  | 63 | % |  | — |  |  | 128,678 |  |  | 236,711 |  |  | 29,001 |  |  | 394,390 |
4 |  | 3 |  | 15 | % |  | — |  |  | 36,538 |  |  | 39,970 |  |  | 15,952 |  |  | 92,460 |
5 |  | — |  | — | % |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
|  | 25 |  | 100 | % |  | $ | — |  |  | $ | 207,168 |  |  | $ | 308,164 |  |  | $ | 106,738 |  |  | $ | 622,070 |
December 31, 2022
Risk Rating |  | Number of Loans |  | Percentage of Portfolio |  | 2022 |  | 2021 |  | 2020 |  | Prior |  | Total
1 |  | 1 |  | 1 | % |  | $ | — |  |  | $ | — |  |  | $ | 9,708 |  |  | $ | — |  |  | $ | 9,708 |
2 |  | 6 |  | 20 | % |  | — |  |  | 65,902 |  |  | 68,740 |  |  | — |  |  | 134,642 |
3 |  | 17 |  | 65 | % |  | 169,516 |  |  | 235,602 |  |  | — |  |  | 28,998 |  |  | 434,116 |
4 |  | 3 |  | 14 | % |  | 36,506 |  |  | 39,314 |  |  | — |  |  | 15,643 |  |  | 91,463 |
5 |  | — |  | — | % |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
|  | 27 |  | 100 | % |  | $ | 206,022 |  |  | $ | 340,818 |  |  | $ | 78,448 |  |  | $ | 44,641 |  |  | $ | 669,929 |
Schedule of Changes to Allowance for Credit Loss | The table below represents the changes to the allowance for credit losses during the three months ended March 31, 2023:
|  | Loans Held For Investment, net |  | Unfunded Loan Commitments |  | Total
Balance at December 31, 2022 |  | $ | — |  |  | $ | — |  |  | $ | — |
Cumulative-effect adjustment upon adoption of ASU No. 2016-13 |  | 4,893 |  |  | 1,702 |  |  | 6,595 |
Reversal of credit losses |  | (758) |  |  | (229) |  |  | (987) |
Balance At March 31, 2023 |  | $ | 4,135 |  |  | $ | 1,473 |  |  | $ | 5,608 |

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- Definition Tabular disclosure of financing receivables by credit quality indicator. The credit quality indicator is a statistic about the credit quality of financing receivables. Examples include, but not limited to, consumer credit risk scores, credit-rating-agency ratings, an entity's internal credit risk grades, loan-to-value ratios, collateral, collection experience and other internal metrics. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 5 -URI https://asc.fasb.org/extlink&oid=124255953&loc=SL82919230-210447 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 29 -URI https://asc.fasb.org/extlink&oid=123577603&loc=SL6953659-111524 + Details
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- Definition Tabular disclosure of the various types of trade accounts and notes receivable and for each the gross carrying value, allowance, and net carrying value as of the balance sheet date. Presentation is categorized by current, noncurrent and unclassified receivables. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.3,4) -URI https://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682 + Details
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