
	December 31, 2022									December 31, 2021
	Fixed Rate			Floating Rate (1)(2)(3)			Total			Fixed Rate			Floating Rate (1)(2)(3)			Total
Number of loans	8			23			31			6			15			21
Principal balance	$	90,990,183		$	554,805,276		$	645,795,459		$	74,880,728		$	405,270,423		$	480,151,151
Carrying value	$	92,274,998		$	534,215,769		$	626,490,767		$	75,520,212		$	394,153,102		$	469,673,314
Fair value	$	90,729,098		$	532,416,656		$	623,145,754		$	75,449,410		$	391,752,209		$	467,201,619
Weighted-average coupon rate	13.82		%	11.23		%	11.59		%	12.39		%	7.01		%	7.85		%
Weighted-average remaining term (years)	1.35			1.10			1.14			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 4.39%, average SOFR of 4.06% and forward-looking term rate based on SOFR (“Term SOFR”) of 4.36% as of December 31, 2022 and LIBOR of 0.10% as of December 31, 2021.

(2)As of December 31, 2022 and 2021, amount included $413.1 million and $163.1 million of senior mortgages used as collateral for $261.0 million and $93.8 million of borrowings under credit facilities, respectively (Note 9).


	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	257,780,401		32,225,275		290,005,676
Principal repayments received	(197,484,239)		—		(197,484,239)
Loans acquired and contributed in connection with the BDC Merger	77,562,529		(2,744,091)		74,818,438
Net amortization of premiums on loans	(469,563)		(87,449)		(557,012)
Accrual, payment and accretion of investment-related fees and other, net	1,512,638		335,361		1,847,999
Provision for loan losses	(11,813,409)		—		(11,813,409)
Balance, December 31, 2022	$	584,417,939	$	42,072,828	$	626,490,767


	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	240,130,367		12,307,366		252,437,733
Principal repayments received	(192,530,456)		(4,250,000)		(196,780,456)
PIK interest (1)	1,955,109		—		1,955,109
Net amortization of premiums on loans	(61,390)		—		(61,390)
Accrual, payment and accretion of investment-related fees and other, net	1,405,206		(7,687)		1,397,519
Realized loss on loan repayments (2)(3)	(651,553)		—		(651,553)
Provision for loan losses	(10,904,163)		—		(10,904,163)
Balance, December 31, 2021	$	457,329,582	$	12,343,732	$	469,673,314

(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 $1.0 million for the year ended December 31, 2021.

(2)On September 2, 2021, the Company foreclosed on a hotel property encumbered by a first mortgage and the related subordinated mezzanine loan, both of which were held by the Company, with an aggregate principal balance $14.6 million. On September 23, 2021, the hotel property was sold to a third party for $13.8 million. The net proceeds from the sale, together with a payment under a contractual guarantee of $0.8 million from the borrower, were used to pay off both loans in full. In connection with the loan repayment, the related obligation under participation agreement of $6.4 million was simultaneously satisfied. In connection with the loan repayment, the Company recorded a loss of $0.4 million related to the write-off of the interest accrued but uncollected in the third quarter of 2021, excluding the amount attributable to obligations under participation agreements of $0.1 million.


	December 31, 2022						December 31, 2021
Loan Structure	Principal Balance		Carrying Value		% of Total		Principal Balance		Carrying Value		% of Total
First mortgages	$	456,408,889	$	461,299,182	73.7	%	$	345,454,454	$	348,101,455	74.0	%
Preferred equity investments	121,231,434		122,132,177		19.5	%	92,252,340		92,400,572		19.7	%
Mezzanine loans	39,352,303		39,451,115		6.3	%	17,444,357		17,622,804		3.8	%
Credit facility	28,802,833		29,080,183		4.6	%	25,000,000		25,206,964		5.4	%
Allowance for loan losses	—		(25,471,890)		(4.1)	%	—		(13,658,481)		(2.9)	%
Total	$	645,795,459	$	626,490,767	100.0	%	$	480,151,151	$	469,673,314	100.0	%


	December 31, 2022						December 31, 2021
Property Type	Principal Balance		Carrying Value		% of Total		Principal Balance		Carrying Value		% of Total
Office	$	184,196,708	$	184,722,657	29.4	%	$	221,596,870	$	222,426,872	47.3	%
Industrial	147,796,164		148,891,742		23.8	%	32,000,000		32,206,964		6.9	%
Multifamily	104,589,464		105,570,432		16.9	%	80,805,787		81,835,756		17.4	%
Mixed-use	64,880,450		65,838,965		10.5	%	28,940,658		28,977,024		6.2	%
Infill land	48,860,291		49,565,437		7.9	%	28,960,455		28,923,827		6.2	%
Hotel - full/select service	43,222,382		43,758,804		7.0	%	56,847,381		57,395,682		12.2	%
Student housing	31,000,000		31,774,261		5.1	%	31,000,000		31,565,670		6.7	%
Infrastructure	21,250,000		21,840,359		3.5	%	—		—		—	%
Allowance for loan losses	—		(25,471,890)		(4.1)	%	—		(13,658,481)		(2.9)	%
Total	$	645,795,459	$	626,490,767	100.0	%	$	480,151,151	$	469,673,314	100.0	%


	December 31, 2022						December 31, 2021
Geographic Location	Principal Balance		Carrying Value		% of Total		Principal Balance		Carrying Value		% of Total
United States
California	$	164,253,345	$	165,839,561	26.5	%	$	234,968,151	$	237,015,597	50.4	%
New York	91,845,479		91,877,084		14.7	%	92,252,340		92,400,572		19.7	%
Georgia	72,401,718		73,101,964		11.7	%	53,289,288		53,536,884		11.4	%
Texas	67,625,000		68,142,046		10.9	%	13,625,000		13,725,690		2.9	%
New Jersey	62,228,622		62,958,482		10.0	%	—		—		—	%
Washington	56,671,267		57,027,639		9.1	%	3,523,401		3,382,683		0.7	%
Utah	49,250,000		50,698,251		8.1	%	28,000,000		28,420,056		6.1	%
North Carolina	43,520,028		44,041,162		7.0	%	44,492,971		44,704,699		9.5	%
Arizona	31,000,000		31,276,468		5.0	%	—		—		—	%
Massachusetts	7,000,000		7,000,000		1.1	%	7,000,000		7,000,000		1.5	%
South Carolina	—		—		—	%	3,000,000		3,145,614		0.7	%
Allowance for loan losses	—		(25,471,890)		(4.1)	%	—		(13,658,481)		(2.9)	%
Total	$	645,795,459	$	626,490,767	100.0	%	$	480,151,151	$	469,673,314	100.0	%

As described in Note 2, the Manager evaluates the Company’s loan portfolio on a quarterly basis or more frequently as needed. In conjunction with the quarterly review of the Company’s loan portfolio, the Manager assesses the risk factors of each loan, and assigns a risk rating based on a five-point scale with “1” being the lowest risk and “5” being the greatest risk.


	December 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		25,041,782		3.8	%	2	25,000,000		25,041,124		5.2	%
3	25	530,867,244		536,992,660		82.4	%	15	349,273,811		352,164,409		72.9	%
4	—	—		—		—	%	1	60,012,639		60,012,639		12.4	%
5	—	—		—		—	%	—	—		—		—	%
Other (1)	4	89,928,215		89,928,215		13.8	%	3	45,864,701		46,113,623		9.5	%
	31	$	645,795,459	651,962,657		100.0	%	21	$	480,151,151	483,331,795		100.0	%
Allowance for loan losses				(25,471,890)							(13,658,481)
Total, net of allowance for loan losses				$	626,490,767						$	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 December 31, 2022 and 2021, the specific allowance for loan losses on these loans were $25.5 million and $12.8 million, respectively, as a result of a decline in the fair value of the respective collateral.

As of December 31, 2022, the Company did not have any loans with a loan risk rating of “4” or “5”, and did not record any general allowance for loan losses for the year ended December 31, 2022. As of December 31, 2022, the Company had four loans deemed impaired and recorded specific allowance for loan losses of $11.8 million for the year ended December 31, 2022. As of December 31, 2021, the Company had one loan with a loan risk rating of “4” and no loans with a loan risk rating of “5”, and recorded general allowance for loan losses of $0.6 million for the year ended December 31, 2021. Additionally, as of December 31, 2021, the Company had three loans deemed impaired and recorded specific allowance for loan losses of $10.3 million for the year ended December 31, 2021.


	Years Ended December 31,
	2022		2021
Allowance for loan losses, beginning of year	$	13,658,481	$	3,738,758
Provision for loan losses	11,813,409		10,904,163
Charge-offs (1)	—		(984,440)
Allowance for loan losses, end of year	$	25,471,890	$	13,658,481

As of December 31, 2022 and 2021, the Company had two loans and one loan that were in default, respectively. Additionally, for the years ended December 31, 2022 and 2021, the Company suspended interest income accrual of $8.5 million and $3.6 million, respectively, on three loans because recovery of such income was doubtful.

As of December 31, 2022, there was one investment that qualified as troubled debt restructuring. As of December 31, 2021, the Company had a recorded investment in troubled debt restructuring of $13.7 million.

2022 — In December 2022, the borrower of a $40.1 million senior loan experienced financial difficulty and offered to repay the loan for $38.7 million. The remaining $1.4 million was converted to subordinated equity that accrues dividends at 8.0% and the Company is entitled to receive waterfall profit upon a sale. The Company does not anticipate a full recovery of the equity position and does not expect to receive any additional income. As a result, the remaining $1.4 million is reflected as a loan

(1) As of December 31, 2022, the principal balance of this loan was the same as the carrying value. The Company recorded an allowance for loan losses of $1.4 million to fully reserve for the unpaid principal balance. There was no income from this investment from the date of modification on December 28, 2022 through December 31, 2022.

2021 — Due to financial difficulty resulting from the COVID-19 pandemic, a borrower defaulted on interest payments in May 2020 on a $3.5 million mezzanine loan, and the Company subsequently suspended the interest accrual. The Company purchased the senior loan from a third-party lender on September 3, 2021 in order to facilitate a refinancing. Subsequently on September 23, 2021, the senior and mezzanine loans were refinanced and the Company issued a new senior loan with a committed amount of $14.7 million, of which $13.6 million was funded at closing. The concession granted in the refinancing was the forgiveness of principal and accrued interest of $1.3 million on the mezzanine loan, of which $1.0 million was previously recorded as an allowance for loan losses, in addition to $0.4 million of nonaccrual interest. The Company classified the refinancing as a TDR as it met all the conditions to be considered a TDR pursuant to ASC 310-40. This investment was repaid in full in April 2022.

(1) As of December 31, 2021, the principal balance of this loan was $13.6 million and the carrying value of this loan, which includes the present value of the exit fee, was $13.7 million. There is no allowance for loan losses recorded for this new senior loan.

Once classified as a TDR, the new senior loan was classified as an impaired loan until it was extinguished and the carrying value was evaluated at each reporting date for collectability based on the fair value of the underlying collateral. Since the fair value of the collateral was greater than the carrying value of the new senior loan, no specific allowance was recorded as of December 31, 2021. For the period from January 1, 2022 through the date of repayment on April 1, 2022, income from the new senior loan was $0.3 million. For the year ended December 31, 2021, interest income from the new senior loan was $0.3 million.