QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State of Organization) | (IRS Employer Identification No.) |
Title of Each Class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||||||||||
☒ | Smaller reporting company | |||||||||||||
Emerging growth company |
Page | ||||||||
March 31, | December 31, | |||||||||||||
2024 | 2023 | |||||||||||||
ASSETS | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Loans held for investment | ||||||||||||||
Allowance for credit losses | ( | ( | ||||||||||||
Loans held for investment, net | ||||||||||||||
Real estate owned, net | ||||||||||||||
Acquired real estate leases, net | ||||||||||||||
Accrued interest receivable | ||||||||||||||
Prepaid expenses and other assets, net | ||||||||||||||
Total assets | $ | $ | ||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||
Accounts payable, accrued liabilities and other liabilities | $ | $ | ||||||||||||
Secured financing facilities, net | ||||||||||||||
Due to related persons | ||||||||||||||
Total liabilities | ||||||||||||||
Commitments and contingencies | ||||||||||||||
Shareholders' equity: | ||||||||||||||
Common shares of beneficial interest, $ | ||||||||||||||
Additional paid in capital | ||||||||||||||
Cumulative net income | ||||||||||||||
Cumulative distributions | ( | ( | ||||||||||||
Total shareholders' equity | ||||||||||||||
Total liabilities and shareholders' equity | $ | $ |
Three Months Ended March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
INCOME FROM INVESTMENTS: | ||||||||||||||
Interest and related income | $ | $ | ||||||||||||
Purchase discount accretion | ||||||||||||||
Less: interest and related expenses | ( | ( | ||||||||||||
Income from loan investments, net | ||||||||||||||
Revenue from real estate owned | ||||||||||||||
Total revenue | ||||||||||||||
OTHER EXPENSES: | ||||||||||||||
Base management fees | ||||||||||||||
Incentive fees | ||||||||||||||
General and administrative expenses | ||||||||||||||
Reimbursement of shared services expenses | ||||||||||||||
Provision for (reversal of) credit losses | ( | |||||||||||||
Expenses from real estate owned | ||||||||||||||
Total other expenses | ||||||||||||||
Income before income taxes | ||||||||||||||
Income tax expense | ( | ( | ||||||||||||
Net income | $ | $ | ||||||||||||
Weighted average common shares outstanding - basic and diluted | ||||||||||||||
Net income per common share - basic and diluted | $ | $ |
Number of Common Shares | Common Shares | Additional Paid In Capital | Cumulative Net Income | Cumulative Distributions | Total | |||||||||||||||||||||||||||||||||
Balance at December 31, 2023 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||
Share grants | — | — | — | — | ||||||||||||||||||||||||||||||||||
Share repurchases | ( | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||
Distributions | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||
Balance at March 31, 2024 | $ | $ | $ | $ | ( | $ |
Balance at December 31, 2022 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||
— | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||
Share grants | — | — | — | — | ||||||||||||||||||||||||||||||||||
Share repurchases | ( | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Share forfeitures | ( | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||
Distributions | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | $ | $ | $ | ( | $ |
Three Months Ended March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||
Net income | $ | $ | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Accretion of purchase discount | ( | ( | ||||||||||||
Provision for (reversal of) credit losses | ( | |||||||||||||
Amortization of loan origination and exit fees | ( | ( | ||||||||||||
Amortization of deferred financing costs | ||||||||||||||
Straight line rental income | ( | |||||||||||||
Depreciation and amortization | ||||||||||||||
Share based compensation | ||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Accrued interest receivable | ||||||||||||||
Prepaid expenses and other assets | ||||||||||||||
Accounts payable, accrued liabilities and other liabilities | ( | |||||||||||||
Due to related persons | ( | |||||||||||||
Net cash provided by operating activities | ||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||
Additional funding of loans held for investment | ( | ( | ||||||||||||
Repayment of loans held for investment | ||||||||||||||
Net cash provided by investing activities | ||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||
Repayments under secured financing facilities | ( | ( | ||||||||||||
Payments of deferred financing costs | ( | ( | ||||||||||||
Repurchase of common shares | ( | ( | ||||||||||||
Distributions | ( | ( | ||||||||||||
Net cash used in financing activities | ( | ( | ||||||||||||
Increase in cash and cash equivalents | ||||||||||||||
Cash and cash equivalents at beginning of period | ||||||||||||||
Cash and cash equivalents at end of period | $ | $ | ||||||||||||
SUPPLEMENTAL DISCLOSURES: | ||||||||||||||
Interest paid | $ | $ | ||||||||||||
Income taxes (refunded) paid | $ | ( | $ | |||||||||||
As of March 31, 2024 | As of December 31, 2023 | |||||||||||||
Number of loans | ||||||||||||||
Total loan commitments | $ | $ | ||||||||||||
Unfunded loan commitments (1) | $ | $ | ||||||||||||
Principal balance | $ | $ | ||||||||||||
Carrying value | $ | $ | ||||||||||||
Weighted average coupon rate | % | % | ||||||||||||
Weighted average all in yield (2) | % | % | ||||||||||||
Weighted average floor | % | % | ||||||||||||
Weighted average maximum maturity (years) (3) | ||||||||||||||
Weighted average risk rating | ||||||||||||||
Principal Balance | Deferred Fees and Other Items | Amortized Cost | ||||||||||||||||||
Balance at December 31, 2023 | $ | $ | ( | $ | ||||||||||||||||
Additional funding | ( | |||||||||||||||||||
Repayments | ( | ( | ( | |||||||||||||||||
Net amortization of deferred fees | — | |||||||||||||||||||
Purchase discount accretion | — | |||||||||||||||||||
Balance at March 31, 2024 | $ | $ | ( | $ |
Principal Balance | Deferred Fees and Other Items | Amortized Cost | ||||||||||||||||||
Balance at December 31, 2022 | $ | $ | ( | $ | ||||||||||||||||
Additional funding | ( | |||||||||||||||||||
Repayments | ( | ( | ( | |||||||||||||||||
Net amortization of deferred fees | — | |||||||||||||||||||
Purchase discount accretion | — | |||||||||||||||||||
Balance at March 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 | $ | % | $ | % | ||||||||||||||||||||||||||||||||||
Office | % | % | ||||||||||||||||||||||||||||||||||||
Industrial | % | % | ||||||||||||||||||||||||||||||||||||
Retail | % | % | ||||||||||||||||||||||||||||||||||||
Hotel | % | % | ||||||||||||||||||||||||||||||||||||
$ | % | $ | % |
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 | $ | % | $ | % | ||||||||||||||||||||||||||||||||||
West | % | % | ||||||||||||||||||||||||||||||||||||
Midwest | % | % | ||||||||||||||||||||||||||||||||||||
East | % | % | ||||||||||||||||||||||||||||||||||||
$ | % | $ | % |
March 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating | Number of Loans | Percentage of Portfolio | 2024 | 2023 | 2022 | 2021 | Prior | Total | ||||||||||||||||||||||||||||||||||||||||||
1 | % | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
% | $ | $ | $ | $ | $ | $ |
December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating | Number of Loans | Percentage of Portfolio | 2023 | 2022 | 2021 | 2020 | Prior | Total | ||||||||||||||||||||||||||||||||||||||||||
1 | % | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
% | $ | $ | $ | $ | $ | $ |
Loans Held for Investment, net | Unfunded Loan Commitments | Total | ||||||||||||||||||
Balance at December 31, 2023 | $ | $ | $ | |||||||||||||||||
Provision for (reversal of) credit losses | ( | |||||||||||||||||||
Balance at March 31, 2024 | $ | $ | $ |
Loans Held for Investment, net | Unfunded Loan Commitments | Total | ||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | |||||||||||||||||
Cumulative-effect adjustment upon adoption of the CECL model | ||||||||||||||||||||
Reversal of credit losses | ( | ( | ( | |||||||||||||||||
Balance At March 31, 2023 | $ | $ | $ |
March 31, 2024 | December 31, 2023 | |||||||||||||
Land, building and improvements | $ | $ | ||||||||||||
Accumulated depreciation | ( | ( | ||||||||||||
Real estate owned, net | ||||||||||||||
Acquired real estate leases, net (1) | ||||||||||||||
Prepaid expenses and other assets, net (2) | ||||||||||||||
Total assets | $ | $ | ||||||||||||
Accounts payable, accrued liabilities and other liabilities | $ | $ | ||||||||||||
Total liabilities | $ | $ |
Debt Obligation | ||||||||||||||||||||||||||||||||||||||||||||
Weighted Average | Collateral | |||||||||||||||||||||||||||||||||||||||||||
Maximum Facility Size | Principal Balance | Carrying Value | Coupon Rate (1) | Remaining Maturity (years) (2) | Maturity Date | Principal Balance | ||||||||||||||||||||||||||||||||||||||
March 31, 2024: | ||||||||||||||||||||||||||||||||||||||||||||
Citibank Master Repurchase Facility | $ | $ | $ | % | 3/15/2025 | $ | ||||||||||||||||||||||||||||||||||||||
UBS Master Repurchase Facility | % | 2/18/2025 | ||||||||||||||||||||||||||||||||||||||||||
BMO Facility | % | Various | ||||||||||||||||||||||||||||||||||||||||||
Wells Fargo Master Repurchase Facility | % | 3/11/2025 | ||||||||||||||||||||||||||||||||||||||||||
Total/weighted average | $ | $ | $ | % | $ |
December 31, 2023: | ||||||||||||||||||||||||||||||||||||||||||||
Citibank Master Repurchase Facility | $ | $ | $ | % | 3/15/2025 | $ | ||||||||||||||||||||||||||||||||||||||
UBS Master Repurchase Facility | % | 2/18/2025 | ||||||||||||||||||||||||||||||||||||||||||
BMO Facility | % | Various | ||||||||||||||||||||||||||||||||||||||||||
Wells Fargo Master Repurchase Facility | % | 3/11/2025 | ||||||||||||||||||||||||||||||||||||||||||
Total/weighted average | $ | $ | $ | % | $ |
Year | Principal Payments on Secured Financing Facilities | |||||||
2024 | $ | |||||||
2025 | ||||||||
2026 and thereafter | ||||||||
$ |
March 31, 2024 | December 31, 2023 | |||||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||||
Loans held for investment | $ | $ | $ | $ | ||||||||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||||
Secured Financing Facilities | $ | $ | $ | $ |
Record Date | Payment Date | Distribution per Share | Total Distribution | |||||||||||||||||
January 22, 2024 | February 15, 2024 | $ | $ | |||||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
Numerators: | ||||||||||||||
Net income | $ | $ | ||||||||||||
Net income attributable to unvested share awards | ( | ( | ||||||||||||
Net income used in calculating net income per common share - basic and diluted | $ | $ | ||||||||||||
Denominators: | ||||||||||||||
Weighted average common shares outstanding - basic and diluted | ||||||||||||||
Net income per common share - basic and diluted | $ | $ | ||||||||||||
March 31, 2024 | December 31, 2023 | ||||||||||
Shareholders' equity | $ | 271,558 | $ | 271,248 | |||||||
Total outstanding common shares | 14,805 | 14,811 | |||||||||
Book value per common share | 18.34 | 18.31 | |||||||||
Unaccreted purchase discount per common share (1) | 0.08 | 0.16 | |||||||||
Allowance for credit losses per common share (2) | 0.44 | 0.40 | |||||||||
Adjusted Book Value per common share | $ | 18.86 | $ | 18.87 | |||||||
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 | ||||||||||||
Weighted average LTV (4) | 68 | % | 68 | % |
# | Location | Property Type | Origination Date | Committed Principal Amount | Principal Balance | Coupon Rate | All in Yield (1) | Maximum Maturity (date) (2) | LTV (3) | Risk Rating | ||||||||||||||||||||||||||||||||||||||||||||||||||||
First mortgage loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | Olmsted Falls, OH | Multifamily | 01/28/2021 | $ | 54,575 | $ | 46,083 | S + 4.00% | S + 4.33% | 01/28/2026 | 63 | % | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||
2 | Dallas, TX | Office | 08/25/2021 | 50,000 | 43,511 | S + 3.25% | S + 3.60% | 08/25/2026 | 72 | % | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Passaic, NJ | Industrial | 09/08/2022 | 47,000 | 39,348 | S + 3.85% | S + 4.26% | 09/08/2027 | 69 | % | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Brandywine, MD | Retail | 03/29/2022 | 42,500 | 42,200 | S + 3.85% | S + 4.26% | 03/29/2027 | 62 | % | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Auburn, AL | Multifamily | 05/11/2023 | 37,500 | 37,500 | S + 3.25% | S + 4.08% | 11/11/2026 | 67 | % | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Starkville, MS | Multifamily | 03/22/2022 | 37,250 | 37,250 | S + 4.00% | S + 4.33% | 03/22/2027 | 70 | % | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||
7 | Farmington Hills, MI | Multifamily | 05/24/2022 | 31,520 | 29,248 | S + 3.15% | S + 3.52% | 05/24/2027 | 75 | % | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||
8 | Downers Grove, IL | Office | 09/25/2020 | 30,000 | 29,500 | S + 4.25% | S + 4.64% | 11/25/2024 | 67 | % | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||
9 | Anaheim, CA | Hotel | 11/29/2023 | 29,000 | 29,000 | S + 4.00% | S + 4.56% | 11/29/2028 | 55 | % | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||
10 | Las Vegas, NV | Multifamily | 06/10/2022 | 28,950 | 25,333 | S + 3.30% | S + 4.08% | 06/10/2027 | 60 | % | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||
11 | Fountain Inn, SC | Industrial | 07/13/2023 | 27,500 | 24,300 | S + 4.25% | S + 4.85% | 07/13/2026 | 76 | % | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||
12 | Plano, TX | Office | 07/01/2021 | 27,385 | 26,537 | S + 4.75% | S + 5.14% | 07/01/2026 | 78 | % | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||
13 | Fayetteville, GA | Industrial | 10/06/2023 | 25,250 | 25,250 | S + 3.35% | S + 3.73% | 10/06/2028 | 55 | % | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||
14 | Carlsbad, CA | Office | 10/27/2021 | 24,750 | 24,417 | S + 3.25% | S + 3.58% | 10/27/2026 | 78 | % | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||
15 | Fontana, CA | Industrial | 11/18/2022 | 24,355 | 22,000 | S + 3.75% | S + 4.29% | 11/18/2026 | 72 | % | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||
16 | Downers Grove, IL | Office | 12/09/2021 | 23,530 | 23,530 | S + 4.25% | S + 4.58% | 12/09/2026 | 72 | % | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||
17 | Bellevue, WA | Office | 11/05/2021 | 21,000 | 20,000 | S + 3.85% | S + 4.19% | 11/05/2026 | 68 | % | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||
18 | Portland, OR | Multifamily | 07/09/2021 | 19,688 | 19,688 | S + 3.57% | S + 3.95% | 07/09/2026 | 75 | % | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||
19 | Scottsdale, AZ | Hotel | 09/27/2023 | 17,250 | 17,250 | S + 4.25% | S + 4.65% | 09/27/2028 | 57 | % | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||
20 | Sandy Springs, GA | Retail | 09/23/2021 | 16,488 | 15,287 | S + 3.75% | S + 4.10% | 09/23/2026 | 72 | % | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||
21 | Portland, OR | Multifamily | 07/30/2021 | 13,400 | 13,400 | S + 3.57% | S + 3.96% | 07/30/2026 | 71 | % | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total/weighted average | $ | 628,891 | $ | 590,632 | S + 3.77% | S + 4.21% | 68 | % | 3.0 |
Facility | Maturity Date | Principal Balance | Unused Capacity | Maximum Facility Size | Collateral Principal Balance | |||||||||||||||||||||||||||
Citibank Master Repurchase Facility | 03/15/2025 | $ | 57,893 | $ | 157,107 | $ | 215,000 | $ | 102,161 | |||||||||||||||||||||||
UBS Master Repurchase Facility | 02/18/2025 | 181,381 | 23,619 | 205,000 | 242,110 | |||||||||||||||||||||||||||
BMO Facility | Various | 87,767 | 62,233 | 150,000 | 118,835 | |||||||||||||||||||||||||||
Wells Fargo Master Repurchase Facility | 03/11/2025 | 95,551 | 29,449 | 125,000 | 127,526 | |||||||||||||||||||||||||||
Total | $ | 422,592 | $ | 272,408 | $ | 695,000 | $ | 590,632 |
Carrying Value | |||||
Balance at December 31, 2023 | $ | 454,422 | |||
Repayments | (33,224) | ||||
Deferred fees | (352) | ||||
Amortization of deferred fees | 325 | ||||
Balance at March 31, 2024 | $ | 421,171 |
Three Months Ended | |||||||||||||||||||||||
March 31, 2024 | December 31, 2023 | Change | % Change | ||||||||||||||||||||
INCOME FROM INVESTMENTS: | |||||||||||||||||||||||
Interest and related income | $ | 16,311 | $ | 17,523 | $ | (1,212) | (6.9 | %) | |||||||||||||||
Purchase discount accretion | 1,145 | 821 | 324 | 39.5 | % | ||||||||||||||||||
Less: interest and related expenses | (8,673) | (8,918) | 245 | (2.7 | %) | ||||||||||||||||||
Income from loan investments, net | 8,783 | 9,426 | (643) | (6.8 | %) | ||||||||||||||||||
Revenue from real estate owned | 579 | 574 | 5 | 0.9 | % | ||||||||||||||||||
Total revenue | 9,362 | 10,000 | (638) | (6.4 | %) | ||||||||||||||||||
OTHER EXPENSES: | |||||||||||||||||||||||
Base management fees | 1,080 | 1,080 | — | — | % | ||||||||||||||||||
Incentive fees | 50 | 307 | (257) | (83.7 | %) | ||||||||||||||||||
General and administrative expenses | 963 | 929 | 34 | 3.7 | % | ||||||||||||||||||
Reimbursement of shared services expenses | 691 | 683 | 8 | 1.2 | % | ||||||||||||||||||
Provision for credit losses | 697 | 500 | 197 | 39.4 | % | ||||||||||||||||||
Expenses from real estate owned | 645 | 559 | 86 | 15.4 | % | ||||||||||||||||||
Total other expenses | 4,126 | 4,058 | 68 | 1.7 | % | ||||||||||||||||||
Income before income taxes | 5,236 | 5,942 | (706) | (11.9 | %) | ||||||||||||||||||
Income tax (expense) benefit | (3) | 103 | (106) | (102.9 | %) | ||||||||||||||||||
Net income | $ | 5,233 | $ | 6,045 | $ | (812) | (13.4 | %) | |||||||||||||||
Weighted average common shares outstanding - basic and diluted | 14,675 | 14,673 | 2 | — | % | ||||||||||||||||||
Net income per common share - basic and diluted | $ | 0.35 | $ | 0.41 | $ | (0.06) | (14.6 | %) |
Three Months Ended | ||||||||||||||
March 31, 2024 | December 31, 2023 | |||||||||||||
Net income | $ | 5,233 | $ | 6,045 | ||||||||||
Non-cash equity compensation expense | 336 | 151 | ||||||||||||
Non-cash accretion of purchase discount | (1,145) | (821) | ||||||||||||
Provision for credit losses | 697 | 500 | ||||||||||||
Depreciation and amortization of real estate owned | 357 | 289 | ||||||||||||
Exit fees collected on loans acquired in Merger (1) | 90 | 148 | ||||||||||||
Distributable Earnings | $ | 5,568 | $ | 6,312 | ||||||||||
Weighted average common shares outstanding - basic and diluted | 14,675 | 14,673 | ||||||||||||
Net income per common share - basic and diluted | $ | 0.35 | $ | 0.41 | ||||||||||
Distributable Earnings per common share - basic and diluted | $ | 0.38 | $ | 0.43 |
Three Months Ended March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
Cash and cash equivalents at beginning of period | $ | 87,855 | $ | 71,067 | ||||||||||
Net cash provided by (used in): | ||||||||||||||
Operating activities | 4,724 | 6,577 | ||||||||||||
Investing activities | 39,554 | 50,267 | ||||||||||||
Financing activities | (38,835) | (43,603) | ||||||||||||
Cash and cash equivalents at end of period | $ | 93,298 | $ | 84,308 |
Payment Due by Period | ||||||||||||||||||||||||||||||||
Total | Less than 1 Year | 1 - 3 Years | 3 - 5 Years | More than 5 years | ||||||||||||||||||||||||||||
Unfunded loan commitments (1) | $ | 38,259 | $ | 21,219 | $ | 17,040 | $ | — | $ | — | ||||||||||||||||||||||
Principal payments on Secured Financing Facilities (2) | 422,592 | 393,762 | 28,830 | — | — | |||||||||||||||||||||||||||
Interest payments on Secured Financing Facilities (3) | 25,682 | 24,744 | 938 | — | — | |||||||||||||||||||||||||||
Lease related costs (4) | 361 | 361 | — | — | — | |||||||||||||||||||||||||||
$ | 486,894 | $ | 440,086 | $ | 46,808 | $ | — | $ | — |
Calendar Month | Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | |||||||||||||||||||||||||
January 2024 | 671 | $ | 12.99 | — | $ | — | |||||||||||||||||||||||
March 2024 | 5,245 | 12.83 | — | — | |||||||||||||||||||||||||
Total/weighted average | 5,916 | $ | 12.85 | — | $ | — | |||||||||||||||||||||||
Exhibit Number | Description | |||||||
3.1 | ||||||||
3.2 | ||||||||
4.1 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
31.3 | ||||||||
31.4 | ||||||||
32.1 | ||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH | XBRL Taxonomy Extension Schema Document. (Filed herewith.) | |||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. (Filed herewith.) | |||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. (Filed herewith.) | |||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. (Filed herewith.) | |||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. (Filed herewith.) | |||||||
104 | Cover Page Interactive Data File. (Formatted as Inline XBRL and contained in Exhibit 101.) |
SEVEN HILLS REALTY TRUST | ||||||||
By: | /s/ Thomas J. Lorenzini | |||||||
Thomas J. Lorenzini President and Chief Investment Officer | ||||||||
Dated: April 29, 2024 | ||||||||
By: | /s/ Fernando Diaz | |||||||
Fernando Diaz Chief Financial Officer and Treasurer (principal financial and accounting officer) | ||||||||
Dated: April 29, 2024 |
Date: April 29, 2024 | /s/ Thomas J. Lorenzini | ||||
Thomas J. Lorenzini President and Chief Investment Officer |
Date: April 29, 2024 | /s/ Fernando Diaz | ||||
Fernando Diaz Chief Financial Officer and Treasurer |
Date: April 29, 2024 | /s/ Matthew P. Jordan | ||||
Matthew P. Jordan Managing Trustee |
Date: April 29, 2024 | /s/ Adam D. Portnoy | ||||
Adam D. Portnoy Managing Trustee |
/s/ Adam D. Portnoy | /s/ Thomas J. Lorenzini | |||||||
Adam D. Portnoy Managing Trustee | Thomas J. Lorenzini President and Chief Investment Officer | |||||||
/s/ Matthew P. Jordan | /s/ Fernando Diaz | |||||||
Matthew P. Jordan Managing Trustee | Fernando Diaz Chief Financial Officer and Treasurer |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Common shares issued (in shares) | 14,805,494 | 14,811,410 |
Common shares outstanding (in shares) | 14,805,494 | 14,811,410 |
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY - USD ($) $ in Thousands |
Total |
Cumulative Effect, Period of Adoption, Adjustment |
Common Shares |
Additional Paid In Capital |
Cumulative Net Income |
Cumulative Net Income
Cumulative Effect, Period of Adoption, Adjustment
|
Cumulative Distributions |
---|---|---|---|---|---|---|---|
Beginning balance (in shares) at Dec. 31, 2022 | 14,709,000 | ||||||
Beginning balance at Dec. 31, 2022 | $ 271,579 | $ (6,595) | $ 15 | $ 238,505 | $ 52,290 | $ (6,595) | $ (19,231) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share grants | 121 | 121 | |||||
Share repurchases (in shares) | (1,000) | ||||||
Share repurchases | (13) | (13) | |||||
Share forfeitures (in shares) | (1,000) | ||||||
Share forfeitures | (1) | (1) | |||||
Net income | 7,803 | 7,803 | |||||
Distributions | (5,147) | (5,147) | |||||
Ending balance (in shares) at Mar. 31, 2023 | 14,707,000 | ||||||
Ending balance at Mar. 31, 2023 | $ 267,747 | $ 15 | 238,612 | 53,498 | (24,378) | ||
Beginning balance (in shares) at Dec. 31, 2023 | 14,811,410 | 14,811,000 | |||||
Beginning balance at Dec. 31, 2023 | $ 271,248 | $ 15 | 239,443 | 71,660 | (39,870) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share grants | $ 336 | 336 | |||||
Share repurchases (in shares) | (5,916) | (6,000) | |||||
Share repurchases | $ (75) | (75) | |||||
Net income | 5,233 | 5,233 | |||||
Distributions | $ (5,184) | (5,184) | |||||
Ending balance (in shares) at Mar. 31, 2024 | 14,805,494 | 14,805,000 | |||||
Ending balance at Mar. 31, 2024 | $ 271,558 | $ 15 | $ 239,704 | $ 76,893 | $ (45,054) |
Basis of Presentation |
3 Months Ended |
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Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements are unaudited. Certain information and disclosures required by U.S. generally accepted accounting principles, or GAAP, for complete financial statements have been condensed or omitted. We believe the disclosures made are adequate to make the information presented not misleading. However, the accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes contained in our Annual Report on Form 10-K for the year ended December 31, 2023, or our 2023 Annual Report. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement of results for the interim periods have been included. All intercompany transactions and balances with or among our consolidated subsidiaries have been eliminated. Operating results for interim periods are not necessarily indicative of the results that may be expected for the full year. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect reported amounts. Actual results could differ from those estimates. Significant estimates in the accompanying condensed consolidated financial statements include the allowance for credit losses, the valuation of real estate owned and the fair value of financial instruments.
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Recent Accounting Pronouncements |
3 Months Ended |
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Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements On November 27, 2023, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, or ASU No. 2023-07, which requires public entities to: i) provide disclosures of significant segment expenses and other segment items if they are regularly provided to the Chief Operating Decision Maker, or the CODM, and included in each reported measure of segment profit or loss; ii) provide all annual disclosures about a reportable segment’s profit or loss and assets currently required by ASC 280, Segment Reporting, or ASC 280, in interim periods; and iii) disclose the CODM’s title and position, as well as an explanation of how the CODM uses the reported measures and other disclosures. Public entities with a single reportable segment must apply all the disclosure requirements of ASU No. 2023-07, as well as all the existing segment disclosures under ASC 280. The amendments in ASU No. 2023-07 are incremental to the requirements in ASC 280 and do not change how a public entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. ASU No. 2023-07 should be applied retrospectively to all prior periods presented in the financial statements and is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating the impact ASU No. 2023-07 will have on our consolidated financial statements and disclosures.
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Loans Held for Investment, net |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Held for Investment, net | Loans Held for Investment, net We originate first mortgage loans secured by middle market and transitional commercial real estate, or CRE, which are generally to be held as long term investments. We fund our loan portfolio using cash on hand and advancements under our Secured Financing Facilities, as defined in Note 5. See Note 5 for further information regarding our secured financing agreements. The table below provides overall statistics for our loan portfolio as of March 31, 2024 and December 31, 2023:
(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:
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:
Credit Quality Information and Allowance for Credit Losses We evaluate the credit quality of each of our loans at least quarterly by assessing a variety of risk factors in relation to each loan and assigning a risk rating to each loan based on those factors. The higher the number, the greater the risk level. See our 2023 Annual Report for more information regarding our loan risk ratings. 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:
Allowance for credit losses We measure our allowance for credit losses using the current expected credit loss, or CECL, model, which is based upon historical experience, current conditions, and reasonable and supportable forecasts incorporating forward-looking information that affect the collectability of the reported amount. The allowance for credit losses is a valuation account that is deducted from the related loans’ amortized cost basis in our condensed consolidated balance sheets. Our loans typically include commitments to fund incremental proceeds to borrowers over the life of the loan; these future funding commitments are also subject to the CECL model. The allowance for credit losses related to unfunded loan commitments is included in accounts payable, accrued liabilities and other liabilities in our condensed consolidated balance sheets. Given the lack of historical loss data related to our loan portfolio, we estimate our expected losses using an analytical model that considers the likelihood of default and loss given default for each individual loan. This analytical model incorporates data from a third party database with historical loan loss information for commercial mortgage-backed securities, or CMBS, and CRE loans since 1998. Significant inputs to the model include certain loan specific data, such as loan to value, or LTV, property type, geographic location, occupancy, vintage year, remaining loan term, net operating income, expected timing and amounts of future loan fundings, and macroeconomic forecast assumptions, including the performance of CRE assets, unemployment rates, interest rates and other factors. We utilize the model to estimate credit losses over a reasonable and supportable economic forecast period of 12 months, followed by a straight-line reversion period of six months to average historical losses. Average historical losses are established using a population of third party historical loss data that approximates our portfolio as of the measurement date. We evaluate the estimated allowance for each of our loans individually and we consider our internal loan risk rating as the primary credit quality indicator underlying our assessment. We have elected to exclude accrued interest receivable from amortized cost and not to measure an allowance for credit losses on accrued interest receivable. Accrued interest receivables are generally written off when payments are 120 days past due. Such amounts are reversed against interest income and no further interest will be recorded until it is collected. If a loan is determined to be collateral dependent (because the repayment of the loan is expected to be provided substantially through the operation or sale of the underlying collateral property) and the borrower is experiencing financial difficulties, but foreclosure is not probable, we may elect to apply a practical expedient to determine the loan's allowance for credit losses by comparing the collateral's fair value, less costs to sell, if applicable, to the amortized cost basis of the loan. For collateral-dependent loans for which foreclosure is probable, the related allowance for credit losses is determined using the fair value, less costs to sell, if applicable, of the collateral compared to the loan's amortized cost. See Note 2 to our Consolidated Financial Statements included in Part IV, Item 15 of our 2023 Annual Report for further information regarding our measurement of our allowance for credit losses. The tables below represent the changes to the allowance for credit losses during the three months ended March 31, 2024 and 2023:
The increase in the allowance for credit losses during the three months ended March 31, 2024 is primarily attributable to a negative outlook in CRE pricing forecasts. The decrease in the allowance for credit losses during the three months ended March 31, 2023, compared to the January 1, 2023 cumulative-effect adjustment upon adoption of the CECL model, was primarily attributable to a favorable macroeconomic outlook as of March 31, 2023, most notably in near-term CRE pricing, and loan repayments. We may enter into loan modifications that include, among other changes, extensions of maturity dates, repurposing or required replenishment of reserves, increases or decreases in loan commitments and required pay downs of principal amounts outstanding. Loan modifications are evaluated to determine whether a modification results in a new loan or a continuation of an existing loan under ASC 310. There were no modifications to our loan portfolio for borrowers experiencing financial difficulties during the three months ended March 31, 2024. We did not have any outstanding past due loans or nonaccrual loans as of March 31, 2024 or December 31, 2023. As of March 31, 2024 and April 25, 2024, all of our borrowers had paid their debt service obligations owed and due to us. See our 2023 Annual Report for more information regarding our nonaccrual policy
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Real Estate Owned |
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Real Estate Owned | Real Estate Owned Real estate owned is property acquired in full or partial settlement of loan obligations generally through foreclosure or by deed in lieu of foreclosure. Upon acquisition, we allocate the fair value of the real estate owned in accordance with ASC 805, Business Combinations. Subsequent to acquisition, costs incurred related to improvements to the property are capitalized and depreciated over their estimated useful lives and costs related to the operation of the property are expensed as incurred. In June 2023, we assumed legal title to an office property located in Yardley, PA through a deed in lieu of foreclosure. The table below presents the assets and liabilities of real estate owned in our condensed consolidated balance sheets:
(1)As of March 31, 2024, the weighted average amortization period of acquired real estate leases was 7.2 years. (2)Includes $925 and $647 and of straight line rent receivables as of March 31, 2024 and December 31, 2023, respectively. Revenue from real estate owned represents rental income from operating leases with tenants and is recognized on a straight line basis over the lease term. We increased revenue from real estate owned to record revenue on a straight line basis by $278 for the three months ended March 31, 2024. Expenses from real estate owned represents costs related to the acquisition of the property, costs to operate the property and depreciation and amortization expense. We regularly evaluate real estate owned for indicators of impairment. Impairment indicators may include declining tenant occupancy, lack of progress leasing vacant space, tenant bankruptcies, low long term prospects for improvement in property performance, weak or declining tenant profitability, cash flow or liquidity, our decision to dispose of an asset before the end of its estimated useful life and legislative, market or industry changes that could permanently reduce the value of a property. If there is an indication that the carrying value of an asset is not recoverable, we estimate the projected undiscounted cash flows to determine if an impairment loss should be recognized. The future net undiscounted cash flows are subjective and are based in part on assumptions regarding hold periods, market rents and terminal capitalization rates. We determine the amount of any impairment loss by comparing the carrying value to estimated fair value. We estimate fair value through an evaluation of recent financial performance and projected discounted cash flows using standard industry valuation methods.
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Secured Financing Agreements |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Financing Agreements | Secured Financing Agreements Our secured financing agreements at March 31, 2024 consisted of agreements that govern: our master repurchase facility with Wells Fargo, National Association, or Wells Fargo, or the Wells Fargo Master Repurchase Facility; our master repurchase facility with Citibank, N.A., or Citibank, or the Citibank Master Repurchase Facility; our master repurchase facility with UBS AG, or UBS, or the UBS Master Repurchase Facility, and our facility loan program with BMO Harris Bank N.A., or BMO, or the BMO Facility. We refer to the Wells Fargo Master Repurchase Facility, Citibank Master Repurchase Facility and UBS Master Repurchase Facility, collectively, as our Master Repurchase Facilities. We refer to the Master Repurchase Facilities and the BMO Facility, collectively, as our Secured Financing Facilities. See our 2023 Annual Report for more information regarding our Secured Financing Facilities. The table below summarizes our Secured Financing Facilities as of March 31, 2024 and December 31, 2023:
(1)The weighted average coupon rate is determined using the Secured Overnight Financing Rate, or SOFR, plus a spread ranging from 1.83% to 2.90%, as applicable, for the respective borrowings under our Secured Financing Facilities as of the applicable date. (2)The weighted average remaining maturity of our Master Repurchase Facilities is determined using the earlier of the underlying loan investment maturity date and the respective repurchase agreement maturity date. The weighted average remaining maturity of the BMO Facility is determined using the underlying loan investment maturity date. As of March 31, 2024, we were in compliance with the covenants and other terms of the agreements that govern our Secured Financing Facilities. As of March 31, 2024, our outstanding borrowings under our Secured Financing Facilities had the following remaining maturities:
Based upon the performance and payment history of our commercial mortgage loans, along with our ability to obtain financing under repurchase agreements and success in extending certain of our existing Master Repurchase Agreements, we believe it is probable that we will extend our Master Repurchase Facilities prior to their maturities.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements The carrying values of cash and cash equivalents and accounts payable approximate their fair values due to the short term nature of these financial instruments. We estimate the fair values of our loans held for investment and outstanding principal balances under our Secured Financing Facilities by using Level III inputs, including discounted cash flow analyses and currently prevailing market terms as of the measurement date. See our 2023 Annual Report for further information regarding the fair value of financial instruments. The table below provides information regarding financial assets and liabilities not carried at fair value in our condensed consolidated balance sheets:
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Shareholders' Equity |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity | Shareholders' Equity Common Share Purchases During the three months ended March 31, 2024, we purchased 5,916 of our common shares from certain current and former officers of The RMR Group LLC, or RMR in satisfaction of tax withholding and payment obligations in connection with the vesting of awards of our common shares, valued at the closing price of our common shares on The Nasdaq Stock Market LLC, or Nasdaq on the applicable purchase date. The aggregate value of common shares purchased was $75. Distributions For the three months ended March 31, 2024, we declared and paid regular quarterly distributions to common shareholders, using cash on hand, as follows:
On April 11, 2024, we declared a quarterly distribution of $0.35 per common share, or $5,182, to shareholders of record on April 22, 2024. We expect to pay this distribution on or about May 16, 2024, using cash on hand.
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Management Agreement with Tremont |
3 Months Ended |
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Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Management Agreement with Tremont | Management Agreement with Tremont We have no employees. The personnel and various services we require to operate our business are provided to us, pursuant to a management agreement with Tremont Realty Capital LLC, or Tremont, which provides for the day to day management of our operations by Tremont, subject to the oversight and direction of our Board of Trustees. We pay Tremont an annual base management fee payable quarterly (0.375% per quarter) in arrears equal to 1.5% of our “Equity,” as defined under our management agreement. We include these amounts in base management fees in our condensed consolidated statements of operations. Pursuant to the terms of our management agreement, we also pay Tremont management incentive fees, subject to Tremont earning those fees in accordance with the management agreement. We include these amounts in incentive fees in our condensed consolidated statements of operations. Tremont, and not us, is responsible for the costs of its employees who provide services to us, unless any such payment or reimbursement is specifically approved by a majority of our Independent Trustees, is a shared services cost or relates to awards made under any equity compensation plan adopted by us. We are required to pay or to reimburse Tremont and its affiliates for all other costs and expenses of our operations. Some of these overhead, professional and other services are provided by RMR, pursuant to a shared services agreement between Tremont and RMR. These reimbursements include an allocation of the cost of personnel employed by RMR. These shared services costs are subject to approval by a majority of our Independent Trustees at least annually. We include these amounts in reimbursement of shared services expenses in our condensed consolidated statements of operations. See our 2023 Annual Report for further information regarding our management agreement with Tremont.
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Related Person Transactions |
3 Months Ended |
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Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related Person Transactions | Related Person Transactions We have relationships and historical and continuing transactions with Tremont, RMR, The RMR Group Inc., or RMR Inc., and others related to them, including other companies to which RMR or its subsidiaries provide management services and some of which have trustees or officers who are also our Trustees or officers. Tremont is a subsidiary of RMR, which is a majority owned subsidiary of RMR Inc., and RMR Inc. is the managing member of RMR. RMR provides certain shared services to Tremont that are applicable to us, and we reimburse Tremont or pay RMR for the amounts Tremont or RMR pays for those services. One of our Managing Trustees and Chair of our Board of Trustees, Adam D. Portnoy, is the sole trustee, an officer and the controlling shareholder of ABP Trust, which is the controlling shareholder of RMR Inc., and he is also a director of Tremont, the chair of the board of directors, a managing director and the president and chief executive officer of RMR Inc., and an officer and employee of RMR. Matthew P. Jordan, our other Managing Trustee, is a director and the president and chief executive officer of Tremont. Mr. Jordan is also an officer of RMR Inc. and an officer and employee of RMR, and our other officers are officers and employees of Tremont and/or RMR. Our Independent Trustees also serve as independent trustees of other public companies to which RMR or its subsidiaries provide management services. Adam D. Portnoy serves as the chair of the board and as a managing trustee of those companies and other officers of RMR, including Mr. Jordan and certain of our other officers and officers of Tremont serve as managing trustees or officers of certain of these companies. Our Manager, Tremont Realty Capital LLC. Tremont provides management services to us pursuant to our management agreement. See Note 8 for further information regarding our management agreement. As of March 31, 2024, Tremont owned 1,708,058 of our common shares, and Mr. Portnoy beneficially owned (including through Tremont and ABP Trust) 13.5% of our outstanding common shares. Property Management Agreement with RMR. We entered into a property management agreement with RMR in July 2023 with respect to real estate owned in Yardley, PA. Pursuant to this agreement, RMR provides property management services and we pay management fees equal to 3.0% of gross collected rents. Also under the terms of this property management agreement, we pay RMR additional fees for construction supervision services equal to 5.0% of the cost of such construction. Either we or RMR may terminate this agreement upon 30 days' prior notice. No termination fee would be payable as a result of terminating the agreement. We recognized property management and construction supervision fees of $9 for the three months ended March 31, 2024, related to real estate owned. For further information about these and other such relationships and certain other related person transactions, refer to our 2023 Annual Report.
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Income Taxes |
3 Months Ended |
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Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We have elected to be taxed as a real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended, or the IRC. Accordingly, we generally are not, and will not be, subject to U.S. federal income tax, provided that we meet certain distribution and other requirements. We are subject to certain state and local taxes, certain of which amounts are or will be reported as income taxes in our condensed consolidated statements of operations.
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Weighted Average Common Shares |
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Weighted Average Common Shares | Weighted Average Common Shares We calculate net income per common share - basic using the two class method. We calculate net income per common share - diluted using the more dilutive of the two class or treasury stock method. Unvested share awards are considered participating securities and the related impact on earnings are considered when calculating net income per common share - basic and net income per common share - diluted. The calculation of net income per common share - basic and diluted is as follows (amounts in thousands, except per share data):
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Commitments and Contingencies |
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Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies As of March 31, 2024, we had unfunded loan commitments of $38,259 related to our loans held for investment that are not reflected in our condensed consolidated balance sheets. These unfunded loan commitments had a weighted average initial maturity of 1.0 years as of March 31, 2024. See Note 3 for further information related to our loans held for investment. As of March 31, 2024, we had estimated unspent lease related costs of $361.
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Basis of Presentation (Policies) |
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Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying condensed consolidated financial statements are unaudited. Certain information and disclosures required by U.S. generally accepted accounting principles, or GAAP, for complete financial statements have been condensed or omitted. We believe the disclosures made are adequate to make the information presented not misleading. However, the accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes contained in our Annual Report on Form 10-K for the year ended December 31, 2023, or our 2023 Annual Report. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement of results for the interim periods have been included. All intercompany transactions and balances with or among our consolidated subsidiaries have been eliminated. Operating results for interim periods are not necessarily indicative of the results that may be expected for the full year.
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Use of Estimates | The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect reported amounts. Actual results could differ from those estimates. Significant estimates in the accompanying condensed consolidated financial statements include the allowance for credit losses, the valuation of real estate owned and the fair value of financial instruments.
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Recent Accounting Pronouncements | On November 27, 2023, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, or ASU No. 2023-07, which requires public entities to: i) provide disclosures of significant segment expenses and other segment items if they are regularly provided to the Chief Operating Decision Maker, or the CODM, and included in each reported measure of segment profit or loss; ii) provide all annual disclosures about a reportable segment’s profit or loss and assets currently required by ASC 280, Segment Reporting, or ASC 280, in interim periods; and iii) disclose the CODM’s title and position, as well as an explanation of how the CODM uses the reported measures and other disclosures. Public entities with a single reportable segment must apply all the disclosure requirements of ASU No. 2023-07, as well as all the existing segment disclosures under ASC 280. The amendments in ASU No. 2023-07 are incremental to the requirements in ASC 280 and do not change how a public entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. ASU No. 2023-07 should be applied retrospectively to all prior periods presented in the financial statements and is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating the impact ASU No. 2023-07 will have on our consolidated financial statements and disclosures.
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Loans Held for Investment, net (Tables) |
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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:
(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:
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:
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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:
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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:
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Real Estate Owned (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Banking and Thrift, Interest [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets and Liabilities of Real Estate Owned | The table below presents the assets and liabilities of real estate owned in our condensed consolidated balance sheets:
(1)As of March 31, 2024, the weighted average amortization period of acquired real estate leases was 7.2 years. (2)Includes $925 and $647 and of straight line rent receivables as of March 31, 2024 and December 31, 2023, respectively.
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Secured Financing Agreements (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | The table below summarizes our Secured Financing Facilities as of March 31, 2024 and December 31, 2023:
(1)The weighted average coupon rate is determined using the Secured Overnight Financing Rate, or SOFR, plus a spread ranging from 1.83% to 2.90%, as applicable, for the respective borrowings under our Secured Financing Facilities as of the applicable date. (2)The weighted average remaining maturity of our Master Repurchase Facilities is determined using the earlier of the underlying loan investment maturity date and the respective repurchase agreement maturity date. The weighted average remaining maturity of the BMO Facility is determined using the underlying loan investment maturity date.
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Schedule of Maturities of Long-term Debt | As of March 31, 2024, our outstanding borrowings under our Secured Financing Facilities had the following remaining maturities:
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Fair Value Measurements (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The table below provides information regarding financial assets and liabilities not carried at fair value in our condensed consolidated balance sheets:
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Shareholders' Equity (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Distributions Declared | For the three months ended March 31, 2024, we declared and paid regular quarterly distributions to common shareholders, using cash on hand, as follows:
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Weighted Average Common Shares (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Weighted Average Number of Common Shares | The calculation of net income per common share - basic and diluted is as follows (amounts in thousands, except per share data):
|
Loans Held for Investment, net - Loan Portfolio Statistics (Details) $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2024
USD ($)
loan
|
Dec. 31, 2023
USD ($)
loan
|
Mar. 31, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
|
Receivables [Abstract] | ||||
Number of loans | loan | 21 | 24 | ||
Total loan commitments | $ 628,891 | $ 670,293 | ||
Unfunded loan commitments | 38,259 | 40,401 | ||
Principal balance | 590,632 | 629,892 | $ 628,696 | $ 678,555 |
Carrying value | $ 583,486 | $ 622,086 | ||
Weighted average coupon rate | 9.14% | 9.19% | ||
Weighted average all in yield | 9.58% | 9.64% | ||
Weighted average floor | 1.41% | 1.36% | ||
Weighted average maximum maturity (years) | 2 years 9 months 18 days | 3 years | ||
Weighted average risk rating | 3.0 | 3.0 |
Loans Held for Investment, net - Loan Activity (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Principal Balance | ||
Beginning balance | $ 629,892 | $ 678,555 |
Additional funding | 1,044 | 1,884 |
Repayments | (40,304) | (51,743) |
Ending balance | 590,632 | 628,696 |
Deferred Fees and Other Items | ||
Beginning balance | (3,430) | (8,626) |
Additional funding | (158) | (14) |
Repayments | (136) | (175) |
Net amortization of deferred fees | 582 | 1,004 |
Purchase discount accretion | 1,145 | 1,185 |
Ending balance | (1,997) | (6,626) |
Amortized Cost | ||
Beginning balance | 626,462 | 669,929 |
Additional funding | 886 | 1,870 |
Repayments | (40,440) | (51,918) |
Net amortization of deferred fees | 582 | 1,004 |
Purchase discount accretion | 1,145 | 1,185 |
Ending balance | $ 588,635 | $ 622,070 |
Real Estate Owned - Schedule of Assets and Liabilities of Real Estate Owned (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Banking and Thrift, Interest [Abstract] | ||
Land, building and improvements | $ 11,393 | $ 11,393 |
Accumulated depreciation | (263) | (115) |
Real estate owned, net | 11,130 | 11,278 |
Acquired real estate leases, net | 3,937 | 4,137 |
Prepaid expenses and other assets, net | 1,576 | 1,352 |
Total assets | 16,643 | 16,767 |
Accounts payable, accrued liabilities and other liabilities | 472 | 517 |
Total liabilities | $ 472 | 517 |
Acquired lease term (in years) | 7 years 2 months 12 days | |
Straight line rent receivables | $ 925 | $ 647 |
Real Estate Owned - Narrative (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Banking and Thrift, Interest [Abstract] | |
Straight line rent adjustments | $ 278 |
Secured Financing Agreements - Schedule of Maturities of Long-term Debt (Details) - Total/weighted average $ in Thousands |
Mar. 31, 2024
USD ($)
|
---|---|
Debt Instrument [Line Items] | |
2024 | $ 157,062 |
2025 | 265,530 |
2026 and thereafter | 0 |
Total | $ 422,592 |
Fair Value Measurements - Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - Level III - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Carrying Value | ||
Financial assets | ||
Loans held for investment | $ 583,486 | $ 622,086 |
Financial liabilities | ||
Secured Financing Facilities | 421,171 | 454,422 |
Fair Value | ||
Financial assets | ||
Loans held for investment | 586,426 | 626,079 |
Financial liabilities | ||
Secured Financing Facilities | $ 419,899 | $ 454,620 |
Shareholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |||||
---|---|---|---|---|---|---|
May 16, 2024 |
Feb. 15, 2024 |
Jan. 22, 2024 |
Jan. 11, 2024 |
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Class of Stock [Line Items] | ||||||
Share repurchases (in shares) | 5,916 | |||||
Share repurchases | $ 75 | $ 13 | ||||
Distribution per share, declared (in dollars per share) | $ 0.35 | |||||
Distribution per share, paid (in dollars per share) | $ 0.35 | |||||
Distributions | $ 5,184 | $ 5,182 | $ 5,184 | $ 5,147 | ||
Forecast | ||||||
Class of Stock [Line Items] | ||||||
Distribution per share, declared (in dollars per share) | $ 0.35 | |||||
Distribution per share, paid (in dollars per share) | $ 0.35 |
Shareholders' Equity - Distributions (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
Feb. 15, 2024 |
Jan. 22, 2024 |
Jan. 11, 2024 |
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Equity [Abstract] | |||||
Distribution per share, declared (in dollars per share) | $ 0.35 | ||||
Distribution per Share, paid (in dollars per share) | $ 0.35 | ||||
Total Distribution | $ 5,184 | $ 5,182 | $ 5,184 | $ 5,147 |
Management Agreement with Tremont (Details) |
Mar. 31, 2024
employee
|
---|---|
Related Party Transactions [Abstract] | |
Number of employees | 0 |
Quarterly base management fee (as a percent) | 0.375% |
Annualized base management fee (as a percent) | 1.50% |
Related Person Transactions (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended |
---|---|---|
Jul. 31, 2023 |
Mar. 31, 2024 |
|
The RMR Group Inc | ||
Related Party Transaction [Line Items] | ||
Property management agreement, termination notice period (in days) | 30 days | |
RMR Group | ||
Related Party Transaction [Line Items] | ||
Real estate owned, property management and construction supervision fees | $ 9 | |
Management Services | Tremont Realty Advisors LLC | ||
Related Party Transaction [Line Items] | ||
Shares owned (in shares) | 1,708,058 | |
Outstanding common shares (as a percent) | 13.50% | |
Property Management Services | The RMR Group Inc | ||
Related Party Transaction [Line Items] | ||
Property management fee (as a percent) | 3.00% | |
Construction Supervision Services | The RMR Group Inc | ||
Related Party Transaction [Line Items] | ||
Property management fee (as a percent) | 5.00% |
Weighted Average Common Shares (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Numerators: | ||
Net income | $ 5,233 | $ 7,803 |
Net income attributable to unvested share awards | (48) | (67) |
Net income used in calculating net income per common share - basic | 5,185 | 7,736 |
Net income used in calculating net income per common share - diluted | $ 5,185 | $ 7,736 |
Denominators: | ||
Weighted average common shares outstanding - basic (in shares) | 14,675 | 14,582 |
Weighted average common shares outstanding - diluted (in shares) | 14,675 | 14,582 |
Net income per common share - basic (in dollars per share) | $ 0.35 | $ 0.53 |
Net income per common share - diluted (in dollars per share) | $ 0.35 | $ 0.53 |
Commitments and Contingencies (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Other Commitments [Line Items] | ||
Unfunded loan commitments | $ 38,259 | $ 40,401 |
Weighted average maximum maturity (in years) | 2 years 9 months 18 days | 3 years |
Unspent leasing related obligation | $ 361 | |
Unfunded Commitments | ||
Other Commitments [Line Items] | ||
Weighted average maximum maturity (in years) | 1 year |
Label | Element | Value |
---|---|---|
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |