XML 37 R26.htm IDEA: XBRL DOCUMENT v3.22.2.2
USE OF SPECIAL PURPOSE ENTITIES AND VARIABLE INTEREST ENTITIES (Tables)
 9 Months Ended
Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Condensed Consolidated Balance Sheets
The carrying values of the Company's total assets and liabilities related to LFT CRE 2021-FL1, Ltd. at September 30, 2022 and December 31, 2021 included the following VIE assets and liabilities:

ASSETSSeptember 30, 2022December 31, 2021
Cash, cash equivalents and restricted cash$28,222,095 $3,530,006 
Accrued interest receivable3,912,849 3,941,695 
Investment related receivable— 22,400,000 
Loans held for investment, net of allowance for loan losses971,905,743 974,025,294 
Total Assets$1,004,040,687 $1,003,896,995 
LIABILITIES
Accrued interest payable$1,575,598 $607,892 
Collateralized loan obligations(1)
828,673,313 826,782,543 
Total Liabilities$830,248,911 $827,390,435 
Equity173,791,776 176,506,560 
Total liabilities and equity$1,004,040,687 $1,003,896,995 

(1)     The stated maturity of the collateral loan obligations per the terms of the underlying collateralized loan obligation agreement is June 14, 2039 for LFT CRE 2021-FL1, Ltd.
Schedule Of Loan And Borrowing Characteristics
The following tables present certain loan and borrowing characteristics of LFT CRE 2021-FL1, Ltd. as of September 30, 2022 and December 31, 2021:
As of September 30, 2022
Collateralized Loan ObligationsCountPrincipal Value
Carrying Value(1)
Wtd. Avg. Coupon(2)
Collateral (loan investments)64$971,881,150 $971,905,743 
6.01%
Financing provided1833,750,000 828,673,313 
4.25%

As of December 31, 2021
Collateralized Loan ObligationsCountPrincipal Value
Carrying Value(1)
Wtd. Avg. Coupon(2)
Collateral (loan investments)64$974,069,994 $974,025,294 
3.93%
Financing provided1833,750,000 826,782,543 
1.54%

(1)     The carrying value for LFT CRE 2021-FL1, Ltd. is net of debt issuance costs of $5,076,687 and $6,967,457 for September 30, 2022 and December 31, 2021, respectively.
(2)    Weighted average coupon for loan investments assumes applicable one-month LIBOR of 2.66% and 0.10% and 30-day Term Secured Overnight Financing Rate ("SOFR") of 2.60% and 0.00% as of September 30, 2022 and December 31, 2021, respectively, inclusive of weighted average interest rate floors of 0.26% and 0.49%, and spreads of 3.36% and 3.42%, respectively. As of September 30, 2022, 86.5% of the investments by total investment exposure earned a floating rate indexed to one-month USD LIBOR and 13.5% of the investments by total investment exposure earned a floating rate indexed to 30-day Term SOFR. As of December 31, 2021, 100% of the investments by total investment exposure earned a floating rate indexed to one-month LIBOR. Weighted coupon for the financing assumes applicable one-month LIBOR of 2.82% and 0.11% as of September 30, 2022 and December 31, 2021 and spreads of 1.43% for September 30, 2022 and December 31, 2021
Condensed Consolidated Statements of Operations
The statement of operations related to LFT CRE 2021-FL1, Ltd., Hunt CRE 2017-FL1, Ltd. and Hunt CRE 2018-FL2, Ltd. for the three and nine months ended September 30, 2022 and September 30, 2021 include the following income and expense items:

Statements of OperationsThree Months Ended September 30, 2022Three Months Ended September 30, 2021
Interest income$13,907,856 $9,412,072 
Interest expense(8,317,893)(3,891,093)
Net interest income$5,589,963 $5,520,979 
Provision for loan losses351,914 
General and administrative fees(145,418)(118,804)
Net income$5,796,459 $5,402,175 
Statements of OperationsNine Months Ended September 30, 2022Nine Months Ended
September 30, 20201
Interest income$35,454,425 $24,543,893 
Interest expense(17,607,021)(8,288,278)
Net interest income$17,847,404 $16,255,615 
Loss on extinguishment of debt— (1,663,926)
Provision for loan losses— — 
General and administrative fees(469,785)(147,604)
Net income$17,377,619 $14,444,085