QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
— |
— |
— |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer |
☒ | Smaller reporting company | ||||
Emerging growth company |
INDEX | PAGE NO. |
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PART I. |
FINANCIAL INFORMATION | 1 | ||||
Item 1. |
Financial Statements | 1 | ||||
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations | 18 | ||||
Item 3. |
Quantitative and Qualitative Disclosures About Market Risk | 31 | ||||
Item 4. |
Controls and Procedures | 33 | ||||
PART II. |
OTHER INFORMATION | 33 | ||||
Item 1. |
Legal Proceedings | 33 | ||||
Item 1A. |
Risk Factors | 33 | ||||
Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds | 33 | ||||
Item 3. |
Defaults Upon Senior Securities | 33 | ||||
Item 4. |
Mine Safety Disclosures | 33 | ||||
Item 5. |
Other Information | 34 | ||||
Item 6. |
Exhibits | 34 | ||||
Item 1. | Financial Statements |
As of September 30, 2023 |
As of December 31, 2022 (1) |
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Assets |
||||||||
Loan receivables held for investments, net, at amortized cost |
||||||||
Mortgage loans receivable |
$ | $ | ||||||
Allowance for credit losses |
( |
) | ( |
) | ||||
Equity method investments |
||||||||
Cash and cash equivalents |
||||||||
Restricted cash |
— | |||||||
Accrued interest receivable |
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Other assets |
— | |||||||
Reimbursement receivable (see Note 8) |
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Deferred financing costs, net |
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Total assets |
$ | $ | ||||||
Liabilities and Members’ Capital |
||||||||
Liabilities |
||||||||
Debt obligations |
||||||||
Capital received in advance |
— | |||||||
Distribution payable |
||||||||
Related party payables and accrued expenses (See Note 8) |
||||||||
Incentive fee payable (see Note 8) |
||||||||
Management fee payable (see Note 8) |
||||||||
Accounts payable and accrued expenses |
||||||||
Other liabilities |
||||||||
Total Liabilities |
$ | $ | ||||||
Commitments and contingencies (see Note 10) |
||||||||
Members’ capital |
||||||||
Common units ( |
$ | |||||||
Distributions in excess of earnings |
( |
) | ( |
) | ||||
Total member’s capital |
||||||||
Total liabilities and members’ capital |
$ | |||||||
(1) |
Prior period conformed to current presentation |
For the Three months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 (1) |
|||||||||||||
Net interest income |
||||||||||||||||
Interest income net of amortization/accretion |
$ | |||||||||||||||
Interest expense |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Net interest income |
||||||||||||||||
Provision for credit losses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Net interest income after provision for credit losses |
||||||||||||||||
Operating Expenses: |
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Management fees (see Note 8) |
||||||||||||||||
Incentive fees |
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Professional fees |
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Administration and custodian fees |
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Other expenses |
||||||||||||||||
Total operating expenses |
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Other Income: |
||||||||||||||||
Reimbursement - Investment Manager (see Note 8) |
( |
) | ||||||||||||||
Waived management fees (see Note 8) |
||||||||||||||||
Income from equity method investments |
||||||||||||||||
Other income |
||||||||||||||||
Total other income |
||||||||||||||||
Net Income |
$ | $ | ||||||||||||||
Net income per unit (basic and diluted) |
||||||||||||||||
Net income per unit (basic and diluted) |
$ | $ | $ | |||||||||||||
Weighted average units outstanding |
(1) |
Prior period conformed to current presentation |
Common Units | ||||||||||||||||
Units | Paid in Capital In Excess of Par |
Distributions in Excess of Earnings |
Total Members’ Capital |
|||||||||||||
Members’ capital at December 31, 2022 |
$ | $ | ( |
) | $ | |||||||||||
Issuance of common units |
— | |||||||||||||||
Redemption of common units |
— | — | — | |||||||||||||
Net Income |
— | — | ||||||||||||||
Distributions declared |
— | — | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Members capital at March 31, 2023 |
$ | $ | ( |
) | $ | |||||||||||
|
|
|
|
|
|
|||||||||||
Issuance of common units |
$ | $ | — | $ | ||||||||||||
Net Income |
— | — | ||||||||||||||
Distributions declared |
— | — | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Members capital at June 30, 2023 |
$ | $ | ( |
) | $ | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Issuance of common units |
$ | $ | — | $ | ||||||||||||
Net Income |
— | — | ||||||||||||||
Distributions declared |
— | — | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Members capital at September 30, 2023 |
$ | $ | ( |
) | $ | |||||||||||
|
|
|
|
|
|
|
|
Common Units | ||||||||||||||||
Units | Paid in Capital In Excess of Par |
Distributions in Excess of Earnings |
Total Members’ Capital |
|||||||||||||
Members’ capital at December 31, 2021 |
$ | $ | ( |
) | $ | |||||||||||
Issuance of common units |
— | |||||||||||||||
Net Income |
— | — | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Members capital at March 31, 2022 |
$ | $ | ( |
) | $ | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Issuance of common units |
— | $ | ||||||||||||||
Net Income |
— | — | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Members capital at June 30, 2022 |
$ | $ | $ | |||||||||||||
|
|
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|
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|
|||||||||||
Issuance of common units |
— | $ | ||||||||||||||
|
|
|
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|
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|
|||||||||
Net Income |
— | — | ||||||||||||||
|
|
|
|
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|
|
|
|||||||||
Distributions declared |
— | — | ( |
) | ( |
) | ||||||||||
|
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|
|
|
|
|
|
|||||||||
Members capital at Sept 30, 2022 |
$ | $ | ( |
) | $ | |||||||||||
|
|
|
|
|
|
|
|
For the Nine Months Ended September 30, 2023 |
For the Nine Months Ended September 30, 2022 (1) |
|||||||
Cash flows from operating activities |
||||||||
Net income |
$ | $ | ||||||
Adjustments to reconcile net income to net cash provided by operating activities |
||||||||
Amortization of net loan fees and discount/premiums on loans receivable |
( |
) | ( |
) | ||||
Income from equity method investments |
( |
) | ( |
) | ||||
Distributions of earnings from equity method investments |
||||||||
Amortization of deferred financing costs |
||||||||
Provision for credit loss |
||||||||
Increase or decrease in operating assets and liabilities: |
||||||||
(Increase) in accrued interest receivable |
( |
) | ( |
) | ||||
(Increase) in other assets |
( |
) | ||||||
Increase in prepaid expenses |
||||||||
Decrease (increase) in reimbursement receivable |
( |
) | ||||||
Increase in related party payables and accrued expenses |
||||||||
Increase in incentive fee payable |
||||||||
Increase in management fee payable |
||||||||
Increase in accounts payable and accrued expenses |
||||||||
(Decrease) increase in other liabilities |
( |
) | ||||||
|
|
|
|
|||||
Net cash provided by operating activities |
||||||||
Cash flows from investing activities |
||||||||
Origination and purchase of mortgage loan receivables |
( |
) | ( |
) | ||||
Purchase of equity method investments |
( |
) | ||||||
Distributions from equity method investments in excess of earnings |
||||||||
|
|
|
|
|||||
Net cash used for investing activities |
( |
) | ( |
) | ||||
Cash flows from financing activities |
||||||||
Issuance of common units |
||||||||
Capital received in advance |
||||||||
Distributions paid |
( |
) | ( |
) | ||||
Line of credit borrowings |
||||||||
Line of credit paydowns |
( |
) | ( |
) | ||||
Repurchase agreement borrowings |
||||||||
Repurchase agreement paydowns |
( |
) | ||||||
Note payable borrowings |
||||||||
Deferred financing costs paid |
( |
) | ( |
) | ||||
|
|
|
|
|
|
|
|
|
Net cash provided by financing activities |
||||||||
|
|
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|
|||||
Net increase in cash and cash equivalents |
||||||||
Cash and cash equivalents and restricted cash, beginning of period |
||||||||
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|
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|
|||||
Cash and cash equivalents and restricted cash, end of period |
$ | $ | ||||||
|
|
|
|
|
|
|
|
|
Reconciliation of cash and cash equivalents and restricted cash |
|
|
| |||||
Cash and cash equivalents |
$ | $ | ||||||
Restricted cash |
||||||||
|
|
|
|
|
|
|
|
|
Cash and cash equivalents and restricted cash, end of period |
$ | $ | ||||||
|
|
|
|
|
|
|
|
|
Supplemental financing activities |
| |||||||
Cash paid during the period for interest |
$ | $ |
(1) |
Prior period conformed to current presentation |
1. | Organization and Business Purpose |
2. | Significant Accounting Policies |
• | Level 1—Valuations are based on quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date. |
• | Level 2—Valuations are based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly and model-based valuation techniques for which all significant inputs are observable. |
• | Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models incorporating significant unobservable inputs, such as discounted cash flow models and other similar valuations techniques. The valuation of Level 3 assets and liabilities generally requires significant management judgment due to the inability to observe inputs to valuation. |
3. | Capital Commitments |
(in thousands) | As of September 30, 2023 |
As of December 31, 2022 |
||||||
Capital Commitments |
$ | $ | ||||||
Cumulative Capital Funded (1) |
||||||||
Unfunded Capital Commitments |
$ | $ | ||||||
(1) |
Excludes cumulative amounts reinvested totaling $ |
4. | Loan Receivables Held for Investment |
Investment (in thousands) |
Investment Type | Loan Type | Origination Date |
Total Commitment |
Loan Balance |
Contractual Interest Rate |
Carrying Value at September 30,2023 |
Interest Rate at September 30, 2023(1) |
Maturity Date |
Payment Terms |
||||||||||||||||||||||||||||||
Loan 1 |
$ | $ | $ | |||||||||||||||||||||||||||||||||||||
Loan 2 |
||||||||||||||||||||||||||||||||||||||||
Loan 3 |
||||||||||||||||||||||||||||||||||||||||
Loan 4 |
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Loan 5 |
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Loan 6 |
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Loan 7 |
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Loan 8 |
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Loan 9 |
||||||||||||||||||||||||||||||||||||||||
Loan 10 |
||||||||||||||||||||||||||||||||||||||||
Total |
$ | $ | $ | |||||||||||||||||||||||||||||||||||||
(1) |
The above loan receivables held for investment are floating rate loans and are presented with the contractual rate based on SOFR or the applicable SOFR floor plus the applicable spread as of September 30, 2023 |
Investment (in thousands) |
Investment Type | Loan Type | Origination Date |
Total Commitment |
Loan Balance |
Contractual Interest Rate |
Carrying Value at December 31, 2022 |
Interest rate at December 31, 2022 (1) |
Maturity Date |
Payment Terms |
||||||||||||||||||||||||||||||
Loan 1 |
$ | $ | % | $ | % | |||||||||||||||||||||||||||||||||||
Loan 2 |
% | % | ||||||||||||||||||||||||||||||||||||||
Loan 3 |
% | % | ||||||||||||||||||||||||||||||||||||||
Loan 4 |
% | % | ||||||||||||||||||||||||||||||||||||||
Loan 5 |
% | % | ||||||||||||||||||||||||||||||||||||||
Loan 6 |
% | % | ||||||||||||||||||||||||||||||||||||||
Loan 7 |
% | % | ||||||||||||||||||||||||||||||||||||||
Total |
$ | $ | $ | |||||||||||||||||||||||||||||||||||||
(1) |
The above loan receivables held for investment are floating rate loans and are presented using SOFR or the applicable SOFR floor plus the applicable spread as of December 31, 2022 |
5. | Equity Method Investments |
(1) |
Prior period conformed to current presentation |
As of June 30, 2023 | As of December 31, 2022 | |||||||
Assets |
||||||||
Investments in mortgage loans |
$ | $ | ||||||
Cash and cash equivalents |
||||||||
Other assets |
||||||||
Total assets |
||||||||
Liabilities |
||||||||
Accrued expenses |
||||||||
Other liabilities |
||||||||
Total liabilities |
||||||||
Total equity |
||||||||
Total liabilities and equity |
$ | $ | ||||||
For the Three Months Ended June 30, 2023 |
For the Nine Months Ended June 30, 2023 |
|||||||
Total income |
$ | |
$ | |
||||
Total expenses |
||||||||
Net investment income |
||||||||
Net realized gain (loss) |
||||||||
Net change in unrealized depreciation |
( |
) | ( |
) | ||||
Net income |
$ | $ | ||||||
6. | Fair Value of Financial Instruments |
(in thousands) | Carrying Value |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Assets |
||||||||||||||||||||
Loan receivables held for investment |
$ | $ | — | $ | — | $ | $ | |||||||||||||
$ | $ | — | $ | — | $ | $ | ||||||||||||||
Liabilities |
||||||||||||||||||||
Line of credit |
$ | $ | — | $ | — | $ | $ | |||||||||||||
Repurchase agreement |
— | — | ||||||||||||||||||
Note payable |
— | — | ||||||||||||||||||
$ | $ | — | $ | — | $ | $ | ||||||||||||||
(in thousands) | Carrying Value |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Assets |
||||||||||||||||||||
Loan receivables held for investment |
$ | $ | — | $ | — | $ | $ | |||||||||||||
$ | $ | — | $ | — | $ | $ | ||||||||||||||
Liabilities |
||||||||||||||||||||
Line of credit |
$ | $ | — | $ | — | $ | $ | |||||||||||||
Repurchase agreement |
— | — | ||||||||||||||||||
$ | $ | — | $ | — | $ | $ | ||||||||||||||
7. | Debt Obligations |
Debt Obligation (in thousands) |
Outstanding Balance as of September 30, 2023 |
Outstanding Balance as of December 31, 2022 |
Weighted Average Interest Rate at September 30, 2023 (1) |
Value of Underlying Collateral as of September 30, 2023 |
||||||||||||
Credit facility |
$ | $ | % | N/A | ||||||||||||
Repurchase agreement |
% | |||||||||||||||
Note payable |
% | |||||||||||||||
Total |
$ | $ | $ | |||||||||||||
(1) |
The above rates are the weighted average interest rates of floating rate loans and are presented using SOFR or the Prime Rate or the applicable SOFR or Prime Rate floor plus the applicable spread as of September 30, 2023. |
Year ending December 31, | Borrowing by Maturity (in thousands) |
|||
2023 (last 6 months) |
$ | |||
2024 |
||||
2025 |
||||
2026 |
||||
2027 |
||||
Total |
$ | |||
8. | Related Party Transactions |
Aggregate Capital Commitment of a Member | Applicable Percentage | |||
$ |
% | |||
$ |
% | |||
$ |
% | |||
$ |
% | |||
$ |
% |
9. | Risks and Uncertainties |
10. | Commitments and Contingencies |
Expiration Date |
Unfunded Commitment (in thousands) |
|||||||
Loan 1 |
$ | |||||||
Loan 2 |
||||||||
Loan 3 |
||||||||
Loan 4 |
||||||||
Loan 5 |
||||||||
Loan 6 |
— | |||||||
Loan 7 |
||||||||
Loan 8 |
||||||||
Loan 9 |
— | |||||||
Loan 10 |
||||||||
Total |
$ |
Expiration Date |
Unfunded Commitment (in thousands) |
|||||||
Loan 1 |
$ | |||||||
Loan 2 |
||||||||
Loan 3 |
||||||||
Loan 4 |
||||||||
Loan 5 |
||||||||
Loan 6 |
— | |||||||
Loan 7 |
||||||||
Total |
$ | |||||||
11. | Economic Dependency |
12. | Subsequent Events |
• | general economic and market conditions, including heightened inflation, slower growth or recession, changes to fiscal and monetary policy, higher interest rates, currency fluctuations, and other conditions particularly affecting the real estate industry; |
• | adverse conditions in the areas where our Portfolio Investments (as defined herein) or the properties underlying such Portfolio Investments are located and local real estate conditions; |
• | an economic downturn could disproportionately impact the investments that we intend to target, potentially causing us to experience a decrease in investment opportunities and diminished demand for capital from our Portfolio Investments; |
• | a contraction of available credit and/or an inability to access the equity markets could impair our lending and investment activities; |
• | interest rate volatility could adversely affect our results, particularly if we elect to use leverage as part of our investment strategy; |
• | our future operating results; |
• | our business prospects; |
• | our contractual arrangements and relationships with third parties; |
• | competition with other entities and our affiliates for investment opportunities; |
• | the speculative and illiquid nature of our investments; |
• | the use of borrowed money to finance a portion of our investments; |
• | the adequacy of our financing sources and working capital; |
• | the loss of key personnel; |
• | the ability of the Investment Manager to locate suitable investments for us and to monitor and administer our investments; |
• | the ability of the Investment Manager to attract and retain highly talented professionals; |
• | limitations imposed on our business and our ability to satisfy requirements to maintain our exclusion from registration under the Investment Company Act of 1940, as amended (the “Investment Company Act”) or to maintain our qualification as a real estate investment trust, or REIT, for U.S. federal income tax purposes; |
• | the effect of legal, tax and regulatory changes; and |
• | the other risks, uncertainties and other factors we identify under “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2022. |
NAV Per Unit | ||||
December 31, 2022 |
$ | 9.6439 | ||
September 30, 2023 |
$ | 9.7369 |
• | investment expenses (including any expenses that the Investment Manager reasonably determines to be related to investments, including expenses related to due diligence, sourcing, purchasing, structuring, originating, disposing, monitoring, financing or hedging of our or each Subsidiary’s assets, such as brokerage commissions, expenses relating to clearing and settlement charges, custodial fees, bank service fees and interest expense, whether or not the investment was consummated); |
• | expenses related to owning and operating real assets; |
• | servicing fees and expenses including such expenses incurred or such fees paid to the Investment Manager or its affiliate in its capacity as servicer if the Company believes the Investment Manager or its affiliate can provide such services more effectively and at a cost that is comparable to prevailing market rates for such services; |
• | expenses incurred in connection with collection of monies owed to the Company or any Subsidiary; |
• | expenses relating to compliance with REIT qualification requirements; |
• | costs for forming and maintaining any Subsidiaries; |
• | expenses arising out of or related to the foreclosure on collateral securing one or more investments of the Company, and, thereafter, expenses associated with holding, valuing, disposing of, trading, financing, negotiating and structuring such foreclosed collateral (including the costs of structuring, establishing, maintaining and liquidating any vehicles established to hold or facilitate the holding of such foreclosed collateral); |
• | legal expenses; |
• | professional fees (including, without limitation, expenses of asset managers, consultants and experts or master servicing or special servicing fees payable to a third party servicer or to the Investment Manager or its affiliates) relating to investments; |
• | accounting expenses; |
• | auditing and tax preparation and other tax-related expenses; |
• | research-related expenses to the extent that such services fall within the safe harbor of Section 28(e) of the Exchange Act (including, without limitation, news and quotation services, market data services, and fees to third-party providers of research and/or portfolio risk management services); |
• | travel-related expenses (including costs related to transportation, lodging and accommodations, meals and entertainment); |
• | interest expense, initial and variation margin requirements, appraisal fees and expenses; |
• | broken deal expenses and other transactional charges; |
• | fees or costs, and all other out-of-pocket expenses incurred in connection with the preparation and distribution of reports to the Members and the operation and administration of the Company’s costs and expenses incurred in connection with the organization and offering and sale of Units (including, without limitation, all legal expenses, printing and mailing costs, insurance costs, filing and registration fees); |
• | the Management Fee; |
• | the Incentive Fee; |
• | the costs and expenses of third-party risk management products and services (including, without limitation, the costs of risk management software or database packages); |
• | any insurance, indemnity or litigation expense (including premiums for policies taken out to cover members of the Board and officers of the Investment Manager, regardless of whether or not those policies cover liability that is not indemnifiable pursuant to the terms of the LLC Agreement); |
• | fees of the Administrator; |
• | expenses associated with the Company’s or any Subsidiary’s administrative and reporting costs, financial statements and tax returns, including the meeting expenses of the Board or the Members; |
• | expenses related to regulatory compliance; |
• | expenses related to the procurement, maintenance, enhancement and use of software programs and systems; |
• | expenses of certain in-house services performed by the Investment Manager in respect of the Company if the Investment Manager believes it can provide such services more effectively and at a cost that is comparable to prevailing market rates for such services; |
• | compensation payable to the Company’s chief financial officer, chief accounting officer and other staff of the Company (which such compensation shall be allocated among the Company and other applicable clients of the Investment Manager on a basis that the Investment Manager believes in good faith to be fair and reasonable); |
• | expenses incurred in connection with complying with provisions in other agreements, including “most favored nations” provisions; |
• | any extraordinary expenses (including, to the extent permitted by law, if applicable, indemnification or litigation expenses and any judgments or settlements paid in connection therewith or other costs or expenses arising therefrom); |
• | any taxes, fees or other governmental charges levied against the Company; |
• | wind-up and liquidation expenses (and expenses comparable to the foregoing); and |
• | other similar expenses related to the Company. |
Investment (in thousands) |
Balance | Interest Rate at September 30, 2023 |
Maturity Date |
Loan Structure |
Property Type | Geographic Location |
||||||||||||||||||
Loan 1 |
$ | 41,276 | 8.39 | % | 1/10/2024 | First Lien | Multifamily | California | ||||||||||||||||
Loan 2 |
$ | 41,440 | 8.94 | % | 7/10/2025 | First Lien | Industrial | Mississippi | ||||||||||||||||
Loan 3 |
$ | 41,000 | 11.83 | % | 3/10/2025 | First Lien | Hospitality | California | ||||||||||||||||
Loan 4 |
$ | 39,913 | 8.63 | % | 5/10/2025 | First Lien | Multifamily | New York | ||||||||||||||||
Loan 5 |
$ | 52,437 | 9.58 | % | 8/5/2024 | First Lien | Office | Texas | ||||||||||||||||
Loan 6 |
$ | 37,748 | 10.08 | % | 7/5/2025 | First Lien | Hospitality | California | ||||||||||||||||
Loan 7 |
$ | 15,590 | 14.38 | % | 3/10/2024 | First Lien | Mixed Use | California | ||||||||||||||||
Loan 8 |
$ | 34,498 | 8.83 | % | 3/10/2026 | First Lien | Industrial | Georgia | ||||||||||||||||
Loan 9 |
$ | 165,300 | 7.58 | % | 8/9/2024 | First Lien | Student Housing | Various | ||||||||||||||||
Loan 10 |
$ | 85,000 | 8.23 | % | 9/10/2026 | First Lien | Multifamily | Virginia |
For the Three months Ended September 30, |
Nine Months Ended September 30, |
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2023 | 2022 | 2023 | 2022 (1) |
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Net interest income |
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Interest income net of amortization/accretion |
$ | 12,287 | $ | 4,225 | $ | 30,079 | $ | 7,522 | ||||||||
Interest expense |
(7,105 | ) | (2,583 | ) | (17,887 | ) | (4,061 | ) | ||||||||
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|
|
|
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Net interest income |
5,182 | 1,673 | 12,192 | 3,461 | ||||||||||||
Provision for credit losses |
(410 | ) | (346 | ) | (1,286 | ) | (1,633 | ) | ||||||||
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|
|
|
|
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Net interest income after provision for credit losses |
4,772 | 1,327 | 10,906 | 1,828 | ||||||||||||
Operating Expenses: |
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Management fees (see Note 8) |
621 | 393 | 1,539 | 750 | ||||||||||||
Incentive fees (see Note 8) |
385 | 91 | 1,067 | 91 | ||||||||||||
Professional fees |
268 | 277 | 900 | 711 | ||||||||||||
Administration and custodian fees |
74 | 48 | 202 | 109 | ||||||||||||
Other expenses |
4 | 8 | 40 | 13 | ||||||||||||
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|
|
|
|
|
|
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Total operating expenses |
1,352 | 817 | 3,748 | 1,675 | ||||||||||||
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|
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|
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Other Income: |
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Reimbursement—Investment Manager (see Note 8) |
(47 | ) | 88 | 169 | 358 | |||||||||||
Waived management fees (see Note 8) |
— | — | — | 300 | ||||||||||||
Income from equity method investments |
1,589 | 1,642 | 4,939 | 1,818 | ||||||||||||
Other income |
195 | 10 | 334 | 27 | ||||||||||||
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|
|
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Total other income |
$ | 1,737 | $ | 1,740 | 5,442 | 2,503 | ||||||||||
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|
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|
|
|
|
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Net Income |
5,157 | 2,250 | $ | 12,600 | $ | 2,656 | ||||||||||
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|
|
|
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Net income per unit (basic and diluted) |
$ | 0.29 | $ | 0.20 | $ | 0.85 | $ | 0.37 | ||||||||
Weighted average units outstanding |
18,024,113 | 11,253,028 | 14,897,713 | 7,104,557 |
(1) |
Prior period conformed to current presentation |
• | managing and supervising the development of our Private Offering; |
• | obtaining market research and economic and statistical data in connection with the investment objectives and policies discussed herein; |
• | identifying, sourcing, evaluating and monitoring investment opportunities consistent with the investment objectives and policies discussed herein, including but not limited to, locating, analyzing and selecting potential investments and, within the discretionary limits and authority granted to the Investment Manager by the Board, making investments in and dispositions of our assets; |
• | structuring and conducting negotiations on our behalf with respect to prospective acquisitions, purchases, sales, exchanges or other dispositions of investments, with sellers, purchasers, and other counterparties and, if applicable, their respective agents, advisors and representatives, and determining the structure and terms of such transactions; |
• | serving as advisor with respect to decisions regarding any of our financings and hedging strategies; |
• | engaging and supervising various service providers on our behalf; |
• | providing accounting and administrative services, including but not limited to, the performance of administrative functions required for day-to-day operations; and |
• | managing communications with Members, including written and electronic communications, and establishing technology infrastructure to assist in supporting and servicing Members. |
Change in Interest Rates |
Increase (Decrease in Interest Income) |
Increase (Decrease) in Interest Expense |
Net Increase (Decrease) in Net Investment Income |
|||||||||
Down 100 basis points |
$ | (5.5 million | ) | $ | (4.1 million | ) | $ | (1.5 million | ) | |||
Down 50 basis points |
(2.8 million | ) | (2.0 million | ) | (728 thousand | ) | ||||||
Up 50 basis points |
2.8 million | 2.0 million | 728 thousand | |||||||||
Up 100 basis points |
5.5 million | 4.1 million | 1.5 million |
31.1 | Certification of Chief Executive Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended* | |
31.2 | Certification of Chief Financial Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended* | |
32.1 | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, as amended* | |
101.INS | XBRL Instance Document—the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the XBRL document* | |
101.SCH | Inline XBRL Taxonomy Extension Schema Document* | |
101.CAL | Inline XBRL Taxonomy Calculation Linkbase Document* | |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document* | |
101.LAB | Inline XBRL Taxonomy Label Linkbase Document* | |
101.PRE | Inline XBRL Taxonomy Presentation Linkbase Document* | |
104 | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101)* |
* | Filed herewith |
AB Commercial Real Estate Private Debt Fund, LLC | ||
By: | /s/ Peter Gordon | |
Peter Gordon | ||
Senior Vice President and Director |