v3.25.2
LOANS HELD FOR INVESTMENT AT CARRYING VALUE
 6 Months Ended
Jun. 30, 2025
LOANS HELD FOR INVESTMENT AT CARRYING VALUE [Abstract]  
LOANS HELD FOR INVESTMENT AT CARRYING VALUE LOANS HELD FOR INVESTMENT AT CARRYING VALUE
As of June 30, 2025 and December 31, 2024, the Company’s portfolio included thirteen and nine loans held at carrying value, respectively. The aggregate originated commitment under these loans was approximately $360.2 million and $190.9 million, respectively, and outstanding principal was approximately $251.0 million and $132.6 million, respectively, as of June 30, 2025 and December 31, 2024. During the six months ended June 30, 2025, the Company funded approximately $130.0 million of new loans and additional principal on existing loans and had approximately $11.5 million of principal repayments of loans held at carrying value. As of June 30, 2025 and December 31, 2024, approximately 86% and 79%, respectively, of the Company’s loans held at carrying value had floating interest rates. As of June 30, 2025, these floating benchmark rates included one-month Secured Overnight Financing Rate (“SOFR”) quoted at 4.3% and subject to a weighted average floor of 4.1% and U.S. prime rate subject to a weighted average floor of 8.0% and quoted at 7.5% based on outstanding principal.
The following tables summarizes the Company’s loans held at carrying value as of June 30, 2025 and December 31, 2024:
As of June 30, 2025
Outstanding
Principal(1)
Original
Issue
(Discount) Premium
Carrying
Value(1)
Weighted
Average
Remaining Life
(Years)(2)
Senior mortgage loans(3)(4)
$211,128,362 $(2,447,813)$208,680,549 2.2
Subordinate debt39,867,160 (210,697)39,656,463 2.2
Total loans held at carrying value$250,995,522 $(2,658,510)$248,337,012 2.2
As of December 31, 2024
Outstanding
Principal(1)
Original
Issue
(Discount) Premium
Carrying
Value(1)
Weighted
Average
Remaining Life
(Years)(2)
Senior mortgage loans(3)
$109,300,553 $(1,495,512)$107,805,041 2.6
Subordinate debt23,255,736 (327,147)22,928,589 2.4
Total loans held at carrying value$132,556,289 $(1,822,659)$130,733,630 2.6
(1)The difference between the carrying value and the outstanding principal amount of the loans consists of unaccreted OID or premium and loan origination costs.
(2)Weighted average remaining life is calculated based on the carrying value of each respective group of loans as of June 30, 2025 and December 31, 2024.
(3)Senior mortgage loans include senior loans that also have a contiguous subordinate loan because as a whole, the expected credit quality of the subordinate loan is more similar to that of a senior loan.
(4)If the Company holds both the A-note and B-note, the loan is categorized as a senior mortgage loan.
The following table presents changes in loans held at carrying value as of and for the six months ended June 30, 2025:
Principal Original Issue
(Discount)
Premium		Carrying Value
Total loans held at carrying value at December 31, 2024$132,556,289 $(1,822,659)$130,733,630 
New fundings121,867,470 (1,451,078)120,416,392 
Interest drawn on loans8,103,971 — 8,103,971 
Accretion of original issue discount and premium, net— 615,227 615,227 
Loan repayments(11,542,613)— (11,542,613)
PIK interest10,405 — 10,405 
Total loans held at carrying value at June 30, 2025$250,995,522 $(2,658,510)$248,337,012 
A more detailed listing of the Company’s loans held at carrying value portfolio based on information available as of June 30, 2025 is as follows:
Loan TypeLocation
Outstanding
Principal(1)
Original
Issue
(Discount)
Premium
Carrying
Value(1)
Interest
Rate
Maturity
Date(2)
Payment
Terms(3)
Senior mortgage loans:
ResidentialAustin, TX$14,087,288 $(219,071)$13,868,217 9.00 %
(4)
7/3/2027I/O
HospitalitySan Antonio, TX26,793,821 (189,583)26,604,238 10.85 %
(5)
8/9/2027I/O
ResidentialPBG, FL29,632,394 (276,693)29,355,701 12.57 %
(6)
9/1/2027I/O
ResidentialPBG, FL27,093,251 (244,141)26,849,110 10.57 %
(7)
9/1/2027I/O
ResidentialFort Lauderdale, FL7,678,034 (207,692)7,470,342 11.45 %
(8)
12/30/2026I/O
HospitalityAustin, TX30,955,196 (322,222)30,632,974 9.82 %
(9)
12/11/2027I/O
ResidentialAventura, FL29,413,408 (240,659)29,172,749 9.32 %
(10)
1/27/2027I/O
Net Leased TenantNew Orleans, LA627,492 (378,889)248,603 10.10 %
(11)
1/30/2028I/O
ResidentialDallas, TX44,548,166 (413,333)44,134,833 7.97 %
(12)
3/14/2028I/O
ResidentialPark City, UT299,312 44,470 343,782 11.25 %
(13)
8/1/2027I/O
Subordinate debt:
ResidentialSarasota, FL24,705,249 (162,086)24,543,163 13.00 %
(14)
5/12/2027I/O
ResidentialMiami, FL10,205,636 (101,111)10,104,525 13.25 %
(15)
11/15/2027I/O
ResidentialMiami, FL4,956,275 52,500 5,008,775 14.82 %
(16)
12/13/2028I/O
Total loans held at carrying value$250,995,522 $(2,658,510)$248,337,012 
(1)The difference between the carrying value and the outstanding principal amount of the loans consists of unaccreted OID or premium and loan origination costs.
(2)Certain loans are subject to contractual extension options and may be subject to performance based or other conditions as stipulated in the loan agreement. Actual maturities may differ from contractual maturities stated herein as certain borrowers may have the right to prepay with or without paying a prepayment penalty. The Company may also extend contractual maturities and amend other terms of the loans in connection with loan modifications.
(3)I/O = interest-only, P/I = principal and interest. P/I loans may include interest-only periods for a portion of the loan term.
(4)Base interest rate of 4.25% plus SOFR (SOFR floor of 4.75%).
(5)Base interest rate of 6.35% plus SOFR (SOFR floor of 4.50%).
(6)Base interest rate of 8.25% plus SOFR (SOFR floor of 4.00%).
(7)Base interest rate of 6.25% plus SOFR (SOFR floor of 4.00%).
(8)Cash interest rate represents a blended rate of differing cash interest rates applicable to each of the A-Notes and B-Notes to which the Company is a lender under the credit agreements. The A-Notes bear interest at a base interest rate of 4.75% plus SOFR (SOFR floor of 4.75%) and the B-Notes bear interest at a base interest rate of 11.00% plus SOFR (SOFR floor of 4.75%).
(9)Base interest rate of 5.50% plus SOFR (SOFR floor of 4.00%).
(10)Base interest rate of 5.00% plus SOFR (SOFR floor of 4.00%).
(11)Base interest rate of 5.60% plus SOFR (SOFR floor of 4.50%).
(12)Base interest rate of 3.65% plus SOFR (SOFR floor of 3.90%).
(13)Base interest rate of 3.25% plus U.S. prime rate (U.S. prime floor of 8.00%).
(14)Base interest rate of 13.00%.
(15)Base interest rate of 13.25%.
(16)Base interest rate of 9.50% plus SOFR (SOFR floor of 4.00%) and PIK interest rate of 1.00%.