XML 31 R22.htm IDEA: XBRL DOCUMENT
v3.22.1

Loans Held for Investment (Tables) | 3 Months Ended
--- | ---
Mar. 31, 2022
Receivables [Abstract] |
Summary Investment Holdings | The following table provides a summary of the Company’s loan portfolio as of March 31, 2022 and December 31, 2021:
| March 31, 2022 |  | December 31, 2021
| Fixed Rate |  | Floating Rate (1)(2)(3) |  | Total |  | Fixed Rate |  | Floating Rate (1)(2)(3) |  | Total
Number of loans | 7 |  |  | 18 |  |  | 25 |  |  | 6 |  |  | 15 |  |  | 21 |
Principal balance | $ | 97,914,340 |  |  | $ | 469,606,633 |  |  | $ | 567,520,973 |  |  | $ | 74,880,728 |  |  | $ | 405,270,423 |  |  | $ | 480,151,151 |
Carrying value | $ | 99,264,597 |  |  | $ | 458,754,403 |  |  | $ | 558,019,000 |  |  | $ | 75,520,212 |  |  | $ | 394,153,102 |  |  | $ | 469,673,314 |
Fair value | $ | 99,045,593 |  |  | $ | 457,961,364 |  |  | $ | 557,006,957 |  |  | $ | 75,449,410 |  |  | $ | 391,752,209 |  |  | $ | 467,201,619 |
Weighted-average coupon rate | 12.92 | % |  | 7.16 | % |  | 8.15 | % |  | 12.39 | % |  | 7.01 | % |  | 7.85 | %
Weighted-average remaining term (years) | 1.98 |  | 1.32 |  | 1.44 |  | 1.93 |  | 1.45 |  | 1.53
_______________ (1)These loans pay a coupon rate of LIBOR or Secured Overnight Financing Rate (“SOFR”), as applicable, plus a fixed spread. Coupon rate shown was determined using LIBOR of 0.45% and SOFR of 0.16% as of March 31, 2022 and LIBOR of 0.10% as of December 31, 2021. (2)As of March 31, 2022 and December 31, 2021, amount included $351.1 million and $290.6 million of senior mortgages used as collateral for $241.5 million and $176.9 million of borrowings under credit facilities, respectively (Note 8). (3)As of March 31, 2022 and December 31, 2021, sixteen and thirteen of these loans, respectively, are subject to a LIBOR or SOFR floor, as applicable.
Investment Holdings, Schedule of Investments | The following table presents the activities of the Company’s loan portfolio for the three months ended March 31, 2022 and 2021:
| Loans Held for Investment |  | Loans Held for Investment through Participation Interests |  | Total
Balance, January 1, 2022 | $ | 457,329,582 |  |  | $ | 12,343,732 |  |  | $ | 469,673,314 |
New loans made | 87,538,133 |  |  | 581,688 |  |  | 88,119,821 |
Principal repayments received | (750,000) |  |  | — |  |  | (750,000) |
Net amortization of premiums on loans | (15,348) |  |  | — |  |  | (15,348) |
Accrual, payment and accretion of investment-related fees and other, net | 1,029,625 |  |  | 11,884 |  |  | 1,041,509 |
Provision for loan losses | (50,296) |  |  | — |  |  | (50,296) |
Balance, March 31, 2022 | $ | 545,081,696 |  |  | $ | 12,937,304 |  |  | $ | 558,019,000 |
| Loans Held for Investment |  | Loans Held for Investment through Participation Interests |  | Total
Balance, January 1, 2021 | $ | 417,986,462 |  |  | $ | 4,294,053 |  |  | $ | 422,280,515 |
New loans made | 14,410,706 |  |  | — |  |  | 14,410,706 |
Principal repayments received | (31,531,804) |  |  | — |  |  | (31,531,804) |
PIK interest (1) | 676,646 |  |  | — |  |  | 676,646 |
Net amortization of premiums on loans | (15,348) |  |  | — |  |  | (15,348) |
Accrual, payment and accretion of investment-related fees and other, net | 526,081 |  |  | (1,905) |  |  | 524,176 |
Provision for loan losses | (276,020) |  |  | — |  |  | (276,020) |
Balance, March 31, 2021 | $ | 401,776,723 |  |  | $ | 4,292,148 |  |  | $ | 406,068,871 |
_______________ (1)Certain loans in the Company’s portfolio contain PIK interest provisions. The PIK interest represents contractually deferred interest that is added to the principal balance. PIK interest related to obligations under participation agreements amounted $0.5 million for the three months ended March 31, 2021.
Schedule of Accounts, Notes, Loans and Financing Receivable | The tables below detail the types of loans in the Company’s loan portfolio, as well as the property type and geographic location of the properties securing these loans as of March 31, 2022 and December 31, 2021:
|  | March 31, 2022 |  | December 31, 2021
Loan Structure |  | Principal Balance |  | Carrying Value |  | % of Total |  | Principal Balance |  | Carrying Value |  | % of Total
First mortgages |  | $ | 410,635,036 |  |  | $ | 413,619,050 |  |  | 74.1 | % |  | $ | 345,454,454 |  |  | $ | 348,101,455 |  |  | 74.0 | %
Preferred equity investments |  | 93,441,580 |  |  | 93,607,463 |  |  | 16.8 | % |  | 92,252,340 |  |  | 92,400,572 |  |  | 19.7 | %
Credit facility |  | 46,000,000 |  |  | 46,885,375 |  |  | 8.4 | % |  | 25,000,000 |  |  | 25,206,964 |  |  | 5.4 | %
Mezzanine loans |  | 17,444,357 |  |  | 17,615,889 |  |  | 3.2 | % |  | 17,444,357 |  |  | 17,622,804 |  |  | 3.8 | %
Allowance for loan losses |  | — |  |  | (13,708,777) |  |  | (2.5) | % |  | — |  |  | (13,658,481) |  |  | (2.9) | %
Total |  | $ | 567,520,973 |  |  | $ | 558,019,000 |  |  | 100.0 | % |  | $ | 480,151,151 |  |  | $ | 469,673,314 |  |  | 100.0 | %
|  | March 31, 2022 |  | December 31, 2021
Property Type |  | Principal Balance |  | Carrying Value |  | % of Total |  | Principal Balance |  | Carrying Value |  | % of Total
Office |  | $ | 229,192,520 |  |  | $ | 230,101,500 |  |  | 41.2 | % |  | $ | 221,596,870 |  |  | $ | 222,426,872 |  |  | 47.3 | %
Multifamily |  | 120,216,869 |  |  | 122,074,241 |  |  | 21.9 | % |  | 80,805,787 |  |  | 81,835,756 |  |  | 17.4 | %
Industrial |  | 67,571,608 |  |  | 67,606,537 |  |  | 12.1 | % |  | 32,000,000 |  |  | 32,206,964 |  |  | 6.9 | %
Hotel - full/select service |  | 56,918,328 |  |  | 57,520,720 |  |  | 10.3 | % |  | 56,847,381 |  |  | 57,395,682 |  |  | 12.2 | %
Infill land |  | 33,807,563 |  |  | 33,895,151 |  |  | 6.1 | % |  | 28,960,455 |  |  | 28,923,827 |  |  | 6.2 | %
Student housing |  | 31,000,000 |  |  | 31,667,292 |  |  | 5.7 | % |  | 31,000,000 |  |  | 31,565,670 |  |  | 6.7 | %
Mixed use |  | 28,814,085 |  |  | 28,862,336 |  |  | 5.2 | % |  | 28,940,658 |  |  | 28,977,024 |  |  | 6.2 | %
Allowance for loan losses |  | — |  |  | (13,708,777) |  |  | (2.5) | % |  | — |  |  | (13,658,481) |  |  | (2.9) | %
Total |  | $ | 567,520,973 |  |  | $ | 558,019,000 |  |  | 100.0 | % |  | $ | 480,151,151 |  |  | $ | 469,673,314 |  |  | 100.0 | %
|  | March 31, 2022 |  | December 31, 2021
Geographic Location |  | Principal Balance |  | Carrying Value |  | % of Total |  | Principal Balance |  | Carrying Value |  | % of Total
United States |  |  |  |  |  |  |  |  |  |  |  |
California |  | $ | 241,635,304 |  |  | $ | 243,830,108 |  |  | 43.7 | % |  | $ | 234,968,151 |  |  | $ | 237,015,597 |  |  | 50.4 | %
New York |  | 93,441,580 |  |  | 93,607,463 |  |  | 16.8 | % |  | 92,252,340 |  |  | 92,400,572 |  |  | 19.7 | %
Georgia |  | 53,970,491 |  |  | 54,221,854 |  |  | 9.7 | % |  | 53,289,288 |  |  | 53,536,884 |  |  | 11.4 | %
North Carolina |  | 45,781,188 |  |  | 46,026,460 |  |  | 8.2 | % |  | 44,492,971 |  |  | 44,704,699 |  |  | 9.5 | %
New Jersey |  | 35,571,608 |  |  | 35,391,604 |  |  | 6.3 | % |  | — |  |  | — |  |  | — | %
Utah |  | 28,000,000 |  |  | 28,529,857 |  |  | 5.1 | % |  | 28,000,000 |  |  | 28,420,056 |  |  | 6.1 | %
Washington |  | 24,424,855 |  |  | 24,487,967 |  |  | 4.4 | % |  | 3,523,401 |  |  | 3,382,683 |  |  | 0.7 | %
Pennsylvania |  | 21,000,000 |  |  | 21,670,442 |  |  | 3.9 | % |  | — |  |  | — |  |  | — | %
Texas |  | 13,695,947 |  |  | 13,824,587 |  |  | 2.5 | % |  | 13,625,000 |  |  | 13,725,690 |  |  | 2.9 | %
Massachusetts |  | 7,000,000 |  |  | 7,000,000 |  |  | 1.3 | % |  | 7,000,000 |  |  | 7,000,000 |  |  | 1.5 | %
South Carolina |  | 3,000,000 |  |  | 3,137,435 |  |  | 0.6 | % |  | 3,000,000 |  |  | 3,145,614 |  |  | 0.7 | %
Allowance for loan losses |  | — |  |  | (13,708,777) |  |  | (2.5) | % |  | — |  |  | (13,658,481) |  |  | (2.9) | %
Total |  | $ | 567,520,973 |  |  | $ | 558,019,000 |  |  | 100.0 | % |  | $ | 480,151,151 |  |  | $ | 469,673,314 |  |  | 100.0 | %
The following table allocates the principal balance and the carrying value of the Company’s loans based on the loan risk rating as of March 31, 2022 and December 31, 2021:
|  | March 31, 2022 |  | December 31, 2021
Loan Risk Rating |  | Number of Loans |  | Principal Balance |  | Carrying Value |  | % of Total |  | Number of Loans |  | Principal Balance |  | Carrying Value |  | % of Total
1 |  | — |  |  | $ | — |  |  | $ | — |  |  | — | % |  | — |  |  | $ | — |  |  | $ | — |  |  | — | %
2 |  | 2 |  |  | 25,000,000 |  |  | 25,041,590 |  |  | 4.4 | % |  | 2 |  |  | 25,000,000 |  |  | 25,041,124 |  |  | 5.2 | %
3 |  | 19 |  |  | 435,383,446 |  |  | 439,254,137 |  |  | 76.8 | % |  | 15 |  |  | 349,273,811 |  |  | 352,164,409 |  |  | 72.9 | %
4 |  | 1 |  |  | 60,583,057 |  |  | 60,583,057 |  |  | 10.6 | % |  | 1 |  |  | 60,012,639 |  |  | 60,012,639 |  |  | 12.4 | %
5 |  | — |  |  | — |  |  | — |  |  | — | % |  | — |  |  | — |  |  | — |  |  | — | %
Other (1) |  | 3 |  |  | 46,554,470 |  |  | 46,848,993 |  |  | 8.2 | % |  | 3 |  |  | 45,864,701 |  |  | 46,113,623 |  |  | 9.5 | %
|  | 25 |  |  | $ | 567,520,973 |  |  | 571,727,777 |  |  | 100.0 | % |  | 21 |  |  | $ | 480,151,151 |  |  | 483,331,795 |  |  | 100.0 | %
Allowance for loan losses |  | (13,708,777) |  |  |  |  |  |  |  |  | (13,658,481) |  |  |
Total, net of allowance for loan losses |  | $ | 558,019,000 |  |  |  |  |  |  |  |  | $ | 469,673,314 |  |  |
_______________ (1)Because these loans have an event of default, they are removed from the pool of loans on which a general allowance is calculated and are evaluated for collectability individually. As of both March 31, 2022 and December 31, 2021, the specific allowance for loan losses on these loans were $12.8 million, as a result of a decline in the fair value of the respective collateral.
Allowance for loan losses | The following table presents the activity in the Company’s allowance for loan losses for the three months ended March 31, 2022 and 2021:
|  | Three Months Ended March 31,
|  | 2022 |  | 2021
Allowance for loan losses, beginning of period |  | $ | 13,658,481 |  |  | $ | 3,738,758 |
Provision for loan losses |  | 50,296 |  |  | 276,020 |
Charge-offs |  | — |  |  | — |
Recoveries |  | — |  |  | — |
Allowance for loan losses, end of period |  | $ | 13,708,777 |  |  | $ | 4,014,778 |
Summarizes the recorded investment of TDR | The following table summarizes the recorded investment of TDR as of the date of restructuring:
Number of loans modified |  | 1 |  |
Pre-modified recorded carrying value |  | $ | 18,503,470 |  |  |
Post-modified recorded carrying value (1) |  | $ | 13,625,000 |  |  |
_______________ (1)As of March 31, 2022, the principal balance of this loan was $13.7 million and the carrying value of this loan, which includes the present value of the exit fee, was $13.8 million. There is no allowance for loan losses recorded for this new senior loan.

X
- Definition Tabular disclosure of allowance for credit loss on financing receivable. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 11B -URI http://asc.fasb.org/extlink&oid=123577603&loc=SL6953423-111524 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 13 -URI http://asc.fasb.org/extlink&oid=124255953&loc=SL82919249-210447 + Details
Name: | us-gaap_AllowanceForCreditLossesOnFinancingReceivablesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of data and information required in the supplementary schedule applicable to management investment companies listing holdings of unaffiliated investments. + References No definition available. + Details
Name: | us-gaap_InvestmentHoldingsScheduleOfInvestmentsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_ReceivablesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682 + Details
Name: | us-gaap_ScheduleOfAccountsNotesLoansAndFinancingReceivableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the summary of investment holdings. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-12B) -URI http://asc.fasb.org/extlink&oid=122147990&loc=d3e611197-123010 + Details
Name: | us-gaap_SummaryInvestmentHoldingsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of troubled debt restructuring which results when the debtor restructures the terms of its debt with a creditor due to the debtor's financial difficulties and the creditor grants certain concessions to obtain payment it might not otherwise receive. Includes a description of the principal changes in terms, the major features of settlement for each restructuring, the aggregate gain on restructuring and the related income tax effect, the per share amount of the total gain on restructuring, net of related income tax effect, and the total gain (loss) on transfers of assets recognized during the period. After the troubled debt restructuring has occurred debtors discuss the extent and amount to which amounts contingently payable are included in the carrying amount of restructured payables, and the conditions under which those amounts would become payable or would be forgiven when there is at least a reasonable possibility that a liability for contingent payments will be incurred. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 60 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6402221&loc=d3e15743-112638 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 60 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6402221&loc=d3e15765-112638 + Details
Name: | us-gaap_SummaryOfTroubledDebtRestructuringNoteDebtorTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration