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COMMERCIAL MORTGAGE LOANS HELD-FOR-INVESTMENT (Tables)
 6 Months Ended
Jun. 30, 2024
Receivables [Abstract]  
Schedule of Commercial Mortgage Loans
The following tables summarize certain characteristics of the Company's investments in commercial mortgage loans as of June 30, 2024 and December 31, 2023:
Weighted Average
Loan TypeUnpaid Principal Balance
Carrying Value(1)
Loan CountFloating Rate Loan %
Coupon(2)
Term
 (Years)(3)
June 30, 2024
Loans held-for-investment
Senior secured loans(4)
$1,201,753,001 $1,195,846,513 78 100.0 %8.9 %2.6
Allowance for credit lossesN/A(9,193,174)
1,201,753,001 1,186,653,339 78 100.0 %8.9 %2.6

Weighted Average
Loan TypeUnpaid Principal Balance
Carrying Value(1)
Loan CountFloating Rate Loan %
Coupon(2)
Term
 (Years)(3)
December 31, 2023
Loans held-for-investment
Senior secured loans(4)
$1,397,385,160 $1,389,940,203 88 100.0 %8.9 %2.9
Allowance for credit lossesNA(6,059,006)
1,397,385,160 1,383,881,197 88 100.0 %8.9 %2.9

(1)    Carrying Value includes $5,577,040 and $7,000,863 in unamortized purchase discounts as of June 30, 2024 and December 31, 2023, respectively.
(2)    Weighted average coupon assumes applicable 30-day Term Secured Overnight Financing Rate ("SOFR") of 5.33% as of June 30, 2024 and December 31, 2023, respectively, inclusive of weighted average interest rate floors of 0.42% and 0.38%, respectively. As of June 30, 2024 and December 31, 2023, 100.0% of the investments by total investment exposure earned a floating rate indexed to 30-day Term SOFR.
(3)    Weighted average remaining term assumes all extension options are exercised by the borrower, provided, however, that our loans may be repaid prior to such date.
(4)    As of June 30, 2024, all of the outstanding senior secured loans were held in VIEs. As of December 31, 2023, $1,375,277,312 of the outstanding senior secured loans were held in VIEs and $8,603,886 of the outstanding senior secured loans were held outside VIEs.

Activity: For the six months ended June 30, 2024, the loan portfolio activity was as follows:

Commercial Mortgage Loans Held-for-Investment
Balance at December 31, 2023$1,383,881,197 
Principal payments(195,632,158)
Accretion of purchase discount1,423,823 
Accretion of deferred loan fees114,645 
Provision for credit losses(3,134,168)
Balance at June 30, 2024
$1,186,653,339 
Schedule of Loan Risk Ratings The following table presents the principal balance and net book value of the loan portfolio based on the Company's internal risk ratings as of June 30, 2024 and December 31, 2023:
June 30, 2024
Amortized Cost by Year of Origination
Risk RatingNumber of LoansOutstanding Principal202320222021
1— $— $— $— $— 
22 30,720,000 — 30,289,080 — 
353 722,569,123 17,848,300 370,714,017 324,704,570 
419 364,347,698 — 135,743,248 224,813,467 
54 84,116,180 — 82,540,657 — 
78 $1,201,753,001 $17,848,300 $619,287,002 $549,518,037 

December 31, 2023
Amortized Cost by Year of Origination
Risk RatingNumber of LoansOutstanding Principal2023202220212019
1— $— $— $— $— $— 
23 37,720,000 — 37,276,159 — — 
367 1,019,844,272 17,887,019 449,921,414 542,010,684 — 
416 294,150,124 — 134,664,646 156,450,510 — 
52 45,670,764 — — 8,889,177 36,781,588 
88 $1,397,385,160 $17,887,019 $621,862,219 $707,350,371 $36,781,588 
Schedule of Geographic Concentrations 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 as of June 30, 2024 and December 31, 2023:
Loans Held-for-Investment
June 30, 2024December 31, 2023
Geography
South38.7 %43.5 %
Southwest34.2 29.4 
Mid-Atlantic14.2 15.0 
Midwest8.0 7.9 
West4.9 4.2 
Total100.0 %100.0 %
June 30, 2024
December 31, 2023
Collateral Property Type
Multifamily93.2 %94.0 %
Seniors Housing and Healthcare6.3 5.5 
Self-Storage0.5 0.5 
Total100.0 %100.0 %
Schedule of Provision for Credit Losses
The following table presents the changes for the three and six months ended June 30, 2024 and June 30, 2023 in the provision for credit losses on loans held-for-investment:
Three months endedSix months ended
June 30, 2024June 30, 2023June 30, 2024June 30, 2023
Allowance for credit losses at beginning of period$7,816,462 $3,357,527 $6,059,006 $4,258,668 
Cumulative-effect adjustment upon adoption of ASU 2016-13— — — 3,549,501 
Provision for credit losses1,376,712 540,368 3,134,168 361,399 
Charge offs— — — (4,271,673)
Allowance for credit losses at end of period$9,193,174 $3,897,895 $9,193,174 $3,897,895 

The following table presents the changes for the three and six months ended June 30, 2024 and June 30, 2023 in the provision for credit losses on the unfunded commitments of the Company's loans held-for-investment:
Three months endedSix months ended
June 30, 2024June 30, 2023June 30, 2024June 30, 2023
Allowance for credit losses at beginning of period$63,064 $41,225 $43,647 $— 
Cumulative-effect adjustment upon adoption of ASU 2016-13— — — 41,939 
Provision for credit losses22,991 14,716 42,408 14,002 
Allowance for credit losses at end of period$86,055 $55,941 $86,055 $55,941 

The following tables present the allowance for credit losses held-for-investment as of June 30, 2024 and December 31, 2023:

June 30, 2024
General ReserveSpecific ReserveTotal Reserve
Allowance for credit losses:
Loans held for investment$8,311,929 $881,245 $9,193,174 
Unfunded loan commitments86,055 — 86,055 
Total allowance for credit losses$8,397,984 $881,245 $9,279,229 
Total unpaid principal balance$1,117,636,821 $84,116,180 $1,201,753,001 

December 31, 2023
General ReserveSpecific ReserveTotal Reserve
Allowance for credit losses:
Loans held for investment$6,059,006 $— $6,059,006 
Unfunded loan commitments43,647 — 43,647 
Total allowance for credit losses$6,102,653 $— $6,102,653 
Total unpaid principal balance$1,397,385,160 $— $1,397,385,160