COMMERCIAL MORTGAGE LOANS HELD-FOR-INVESTMENT (Notes)

6 Months Ended

Jun. 30, 2018

COMMERCIAL MORTGAGE LOANS HELD-FOR-INVESTMENT

The following table summarizes certain characteristics of the Company's investments in commercial mortgage loans as of June 30, 2018; the Company had no such investments as of December 31, 2017:



						Weighted Average
Loan Type	Outstanding Face Amount		Carrying Value		Loan Count	Floating Rate Loan %⁽¹⁾		Coupon⁽¹⁾		Life (Years)⁽²⁾
June 30, 2018
Loans held-for-investment
Senior secured loans⁽³⁾	$	326,883,547	$	326,883,547	22	100.0	%	6.9	%	3.1
	326,883,547		326,883,547		22	100.0	%	6.9	%	3.1

(1) Average weighted by outstanding face amount of loan. Weighted average coupon assumes applicable one-month LIBOR rate as of June 30, 2018

(2) The weighted average life of each loan is based on the expected timing of the receipt of contractual cash flows assuming all extension options are exercised by the borrower

(3) As of June 30, 2018, $320,907,160 of the outstanding senior secured loans are held in VIEs and $5,976,387 of the outstanding senior secured loans are loan participations

Activity: For the six months ended June 30, 2018, the loan portfolio activity was as follows:



	Commercial Mortgage Loans Held-for-Investment			Total
Balance at December 31, 2017	$	—		$	—
Purchases, net	347,288,547			347,288,547
Proceeds from principal repayments	(20,405,000		)	(20,405,000		)
Balance at June 30, 2018	$	326,883,547		$	326,883,547

Loan Risk Ratings: As further described in Note 2, the Company evaluates the commercial mortgage loan portfolio on a quarterly basis. In conjunction with the quarterly commercial mortgage loan portfolio review, the Company assesses the risk factors of each loan, and assigns a risk rating based on a variety of factors. Loans are rated "1" (very low risk) through "5" (default risk), which are described in Note 2. The following table presents the principal balance and net book value of the loan portfolio based on the Company's internal risk ratings:



June 30, 2018
Risk Rating	Number of Loans	Outstanding Face Amount		Net Book Value
1	—	$	—	—
2	6	82,883,245		82,883,245
3	13	195,210,492		195,210,492
4	3	48,789,810		48,789,810
5	—	—		—
	22	$	326,883,547	326,883,547

As of June 30, 2018, the average risk rating of the commercial mortgage loan portfolio was 3.0 (Moderate Risk), weighted by investment carrying value, with 85.1% of commercial loans held-for-investment, rated 3 (Moderate Risk) or better by the Company's Manager.

Concentration of Credit Risk: The following tables present the geographic and property types of collateral underlying the Company's commercial mortgage loans as a percentage of the loans' carrying value:

Loans Held-for-Investment



	June 30, 2018			June 30, 2018
Geography			Collateral Property Type
Texas	28.4	%	Multifamily	88.1	%
Arizona	15.2		Retail	6.8
Georgia	10.8		Mixed Use	3.7
Connecticut	8.6		Office	1.4
Florida	8.2		Total	100.0	%
California	7.6
Mississippi	6.3
Washington	4.7
North Carolina	4.6
Ohio	3.7
Louisiana	1.9
Total	100.0	%

The table below sets forth additional information relating to our portfolio as of June 30, 2018:



Loan #	Investment	Origination Date	Total Loan Commitment	Outstanding Face Amount	Location	Property Type	Coupon	Max Remaining Term (Years)	LTV
1	Senior Loan	12-Jun-17	4,675,000	4,675,000	Winston-Salem, NC	Multi-Family	1mL + 6.0%	2.1	77.2	%
2	Senior Loan	30-Jan-17	3,743,000	3,743,000	Tyler, TX	Multi-Family	1mL + 5.5%	1.7	58.3	%
3	Senior Loan	5-Nov-15	6,035,000	6,035,000	Pascagoula, MS	Multi-Family	1mL + 4.5%	2.4	70.7	%
4	Senior Loan	23-Dec-15	13,500,000	12,226,811	Akron, OH	Mixed Use	1mL + 5.3%	2.7	68.7	%
5	Senior Loan	11-Oct-17	6,370,000	6,370,000	New Orleans, LA	Multi-Family	1mL + 4.1%	4.4	75.5	%
6	Senior Loan	13-Oct-17	14,715,000	14,715,000	Hattiesburg, MS	Multi-Family	1mL + 4.8%	4.4	78.4	%
7	Senior Loan	9-Jan-18	10,317,000	8,960,694	North Highlands, CA	Multi-Family	1mL + 4.0%	4.7	79.0	%
8	Senior Loan	16-Jun-17	5,810,000	5,625,170	Dallas, TX	Multi-Family	1mL + 4.8%	4.1	75.2	%
9	Senior Loan	15-Nov-17	30,505,000	30,505,000	Phoenix, AZ	Multi-Family	1mL + 3.8%	4.5	74.3	%
10	Senior Loan	30-Nov-16	5,000,000	4,526,252	Stafford, TX	Office	1mL + 5.5%	3.5	56.4	%
11	Senior Loan	30-Dec-16	28,125,000	28,125,000	Stamford, CT	Multi-Family	1mL + 4.8%	3.6	64.5	%
12	Senior Loan	1-Sep-16	26,800,000	26,800,000	Tampa, FL	Multi-Family	1mL + 5.5%	1.3	70.3	%
13	Senior Loan	16-Aug-17	24,000,000	24,000,000	League City, TX	Multi-Family	1mL + 4.5%	2.3	76.4	%
14	Senior Loan	29-Sep-17	12,664,000	11,658,308	Austell, GA	Multi-Family	1mL + 4.2%	4.3	81.6	%
15	Senior Loan	4-Nov-16	10,250,000	10,250,000	Greensboro, NC	Multi-Family	1mL + 5.3%	1.4	83.8	%
16	Senior Loan	6-Sep-17	15,250,000	15,250,000	Seattle, WA	Multi-Family	1mL + 4.5%	1.3	54.1	%
17	Senior Loan	17-Nov-16	16,600,000	15,871,183	Stockton, CA	Multi-Family	1mL + 5.1%	3.5	76.5	%
18	Senior Loan	17-Apr-17	23,488,000	23,488,000	Brookhaven, GA	Multi-Family	1mL + 4.8%	3.9	72.8	%
19	Senior Loan	9-May-17	16,500,000	13,437,757	Austin, TX	Retail	1mL + 7.3%	4.0	67.5	%
20	Senior Loan	29-Jun-16	32,820,000	32,820,000	Various	Multi-Family	1mL + 5.5%	1.1	70.6	%
21	Senior Loan	1-Dec-17	19,110,000	19,110,000	Tuscon, AZ	Multi-Family	1mL + 4.5%	4.5	80.3	%
22	Senior Loan	19-Apr-17	11,200,000	8,691,382	Austin, TX	Retail	1mL + 5.2%	3.9	31.7	%

The following table presents certain loan and borrowing characteristics of Hunt CRE 2017-FL1, Ltd.:



As of June 30, 2018
Collateral (loan investments)				Debt (notes issued)
Outstanding Principal		Carrying Value		Face Value		Carrying Value
$	320,907,160	$	320,907,160	$	290,732,000	$	287,738,948

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

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