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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.

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