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Loans Held for Investment, net (Tables)

3 Months Ended

Mar. 31, 2024

Receivables [Abstract]

Schedule of Loans

The table below provides overall statistics for our loan portfolio as of March 31, 2024 and December 31, 2023:    

						As of March 31, 2024						As of December 31, 2023
Number of loans						21						24
Total loan commitments						$	628,891					$	670,293
Unfunded loan commitments (1)						$	38,259					$	40,401
Principal balance						$	590,632					$	629,892
Carrying value						$	583,486					$	622,086
Weighted average coupon rate						9.14		%				9.19		%
Weighted average all in yield (2)						9.58		%				9.64		%
Weighted average floor						1.41		%				1.36		%
Weighted average maximum maturity (years) (3)						2.8						3.0
Weighted average risk rating						3.0						3.0

(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, 2024 and 2023:

						Principal Balance						Deferred Fees and Other Items						Amortized Cost
Balance at December 31, 2023						$	629,892					$	(3,430)					$	626,462
Additional funding						1,044						(158)						886
Repayments						(40,304)						(136)						(40,440)
Net amortization of deferred fees						—						582						582
Purchase discount accretion						—						1,145						1,145
Balance at March 31, 2024						$	590,632					$	(1,997)					$	588,635

						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

The tables below detail the property type and geographic location of the properties securing the loans in our portfolio as of March 31, 2024 and December 31, 2023:

						March 31, 2024																		December 31, 2023
Property Type						Number of Loans						Amortized Cost						Percentage of Value						Number of Loans						Amortized Cost						Percentage of Value
Multifamily						7						$	208,610					35		%				7						$	207,734					33		%
Office						6						166,618						28		%				7						181,268						29		%
Industrial						4						110,181						19		%				5						118,707						19		%
Retail						2						57,387						10		%				3						72,962						12		%
Hotel						2						45,839						8		%				2						45,791						7		%
						21						$	588,635					100		%				24						$	626,462					100		%

						March 31, 2024																		December 31, 2023
Geographic Location						Number of Loans						Amortized Cost						Percentage of Value						Number of Loans						Amortized Cost						Percentage of Value
South						7						$	208,046					35		%				8						$	222,477					36		%
West						8						170,369						29		%				9						185,294						30		%
Midwest						4						128,970						22		%				4						128,876						20		%
East						2						81,250						14		%				3						89,815						14		%
						21						$	588,635					100		%				24						$	626,462					100		%

Schedule of Carrying Value Excluding Allowance of Credit Losses

As of March 31, 2024 and December 31, 2023, the amortized cost of our loan portfolio within each internal risk rating by year of origination was as follows:

March 31, 2024
Risk Rating						Number of Loans						Percentage of Portfolio						2024						2023						2022						2021						Prior						Total
1						—						—		%				$	—					$	—					$	—					$	—					$	—					$	—
2						3						14		%				—						83,229						—						—						—						83,229
3						15						71		%				—						49,141						195,121						144,692						29,571						418,525
4						3						15		%				—						—						—						86,881						—						86,881
5						—						—		%				—						—						—						—						—						—
						21						100		%				$	—					$	132,370					$	195,121					$	231,573					$	29,571					$	588,635

December 31, 2023
Risk Rating						Number of Loans						Percentage of Portfolio						2023						2022						2021						2020						Prior						Total
1						—						—		%				$	—					$	—					$	—					$	—					$	—					$	—
2						3						15		%				37,323						42,089						15,435						—						—						94,847
3						18						71		%				94,881						167,491						144,456						38,548						—						445,376
4						3						14		%				—						—						86,239						—						—						86,239
5						—						—		%				—						—						—						—						—						—
						24						100		%				$	132,204					$	209,580					$	246,130					$	38,548					$	—					$	626,462

Schedule of Changes to Allowance for Credit Loss

The tables below represent the changes to the allowance for credit losses during the three months ended March 31, 2024 and 2023:

						Loans Held for Investment, net						Unfunded Loan Commitments						Total
Balance at December 31, 2023						$	4,376					$	1,452					$	5,828
Provision for (reversal of) credit losses						773						(76)						697
Balance at March 31, 2024						$	5,149					$	1,376					$	6,525

						Loans Held for Investment, net						Unfunded Loan Commitments						Total
Balance at December 31, 2022						$	—					$	—					$	—
Cumulative-effect adjustment upon adoption of the CECL model						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 allowance for credit loss on financing receivable.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479319/326-20-50-13

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 310
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-Publisher FASB
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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
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479319/326-20-50-5

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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.

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-Name Accounting Standards Codification
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