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Loans Held for Investment, net (Tables)

3 Months Ended

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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Tabular disclosure of allowance for credit loss on financing receivable.

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Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
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-Section 50
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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
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-Section 50
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-URI https://asc.fasb.org/extlink&oid=124255953&loc=SL82919230-210447

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