UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended September 30, 2017March 31, 2020
 OR
¨TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number: 000-55188
BENEFIT STREET PARTNERS REALTY TRUST, INC.
(Exact name of registrant as specified in its charter) 
Maryland 46-1406086
(State or Other Jurisdiction of
Incorporation or Organization)
 
(I.R.S. Employer
Identification No.)
   
9 West 57th Street, Suite #4920
New York, New York
 10019
(Address of Principal Executive Office) (Zip Code)

(212) 588-6770
(Registrant’s Telephone Number, Including Area Code)

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
None
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. (check one):Act:
Large accelerated filer o
Accelerated filer o
Non-accelerated filer(Do not check if a smaller reporting company) x
Smaller reporting company o
 
Emerging growth filer o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o


Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

The number of shares of the registrant's common stock, $0.01 par value, outstanding as of October 31, 2017April 30, 2020 was 31,704,950.44,373,856.

2
BENEFIT STREET PARTNERS REALTY TRUST, INC.

TABLE OF CONTENTS



Page
PART I
Page
Item 1. Consolidated Financial Statements and Notes (unaudited) (unaudited)
-11
Item 2. Management'sManagement’s Discussion and Analysis of Financial Condition and Results of Operations
-3348
Item 3. Quantitative and Qualitative Disclosures about Market Risk
-5272
Item 4. Controls and Procedures
-5274
PART II
 
Item 1. Legal Proceedings
-5374
Item 1A. Risk Factors
-5374
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
-5475
Item 3. Defaults Upon Senior Securities
-5475
Item 4. Mine Safety Disclosures
-5476
Item 5. Other Information
-5476
Item 6. Exhibits
-5577
Signatures
-5678


i
Table of Contents

PART I
Item 1. Consolidated Financial Statements.Statements and Notes (unaudited)

1
BENEFIT STREET PARTNERS REALTY TRUST, INC.

CONSOLIDATED BALANCE SHEETS
(In thousands, except for share and per share data)


 March 31, 2020 December 31, 2019
ASSETS(Unaudited)  
Cash and cash equivalents$88,960
 $87,246
Restricted cash90,229
 21,876
Commercial mortgage loans, held for investment, net of allowance of $21,702 and $921 as of March 31, 2020 and December 31, 2019, respectively2,640,979
 2,762,042
Commercial mortgage loans, held-for-sale, measured at fair value91,813
 112,562
Commercial mortgage loans, held-for-sale9,619
 —
Real estate securities, available for sale, measured at fair value, amortized cost of $509,745 and $387,294 as of March 31, 2020 and December 31, 2019, respectively441,160
 386,316
Derivative instruments, at fair value1,173
 1,119
Other real estate investments, measured at fair value2,496
 2,557
Receivable for loan repayment (1)
28,206
 89,317
Accrued interest receivable15,877
 16,308
Prepaid expenses and other assets10,848
 5,322
Intangible lease asset, net of amortization
14,165
 14,377
Operating right of use asset, net of amortization5,902
 5,979
Real estate owned, net of depreciation49,306
 35,333
Receivable for unsettled trades11,152
 266
Total assets$3,501,885
 $3,540,620
LIABILITIES AND STOCKHOLDERS' EQUITY   
Collateralized loan obligations$1,739,009
 $1,803,185
Repurchase agreements - commercial mortgage loans234,524
 252,543
Repurchase agreements - real estate securities496,880
 394,359
Mortgage note payable40,167
 29,167
Other financing and loan participation - commercial mortgage loans15,190
 —
Derivative instruments, at fair value5,528
 1,581
Interest payable2,886
 4,958
Distributions payable6,956
 6,912
Accounts payable and accrued expenses10,008
 10,925
Due to affiliates14,038
 4,789
Operating lease liabilities6,176
 6,136
Deferred rent revenue61
 150
Total liabilities$2,571,423
 $2,514,705
Commitment and contingencies (See Note 10)

 

Redeemable convertible preferred stock Series A, $0.01 par value, 60,000 authorized and 40,514 and 40,500 issued and outstanding as of March 31, 2020 and December 31, 2019, respectively$202,235
 $202,144
Redeemable convertible preferred stock Series C, $0.01 par value, 20,000 authorized and 1,400 issued and outstanding as of March 31, 2020 and December 31, 2019, respectively$6,962
 $6,966
Equity:   
Preferred stock, $0.01 par value, 50,000,000 authorized, none issued and outstanding as of March 31, 2020 and December 31, 2019—
 —
Common stock, $0.01 par value, 949,999,000 shares authorized, 44,396,346 and 43,916,815 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively445
 441
Additional paid-in capital910,905
 903,310
Accumulated other comprehensive income (loss)(68,585) (978)
Accumulated deficit(121,500) (85,968)
Total stockholders' equity$721,265
 $816,805
Total liabilities, redeemable convertible preferred stock and stockholders' equity$3,501,885
 $3,540,620
 September 30, 2017 December 31, 2016
ASSETS(Unaudited)  
Cash and cash equivalents$72,262
 $118,048
Restricted cash7,754
 5,021
Commercial mortgage loans, held for investment, net of allowance of $1,959 and $2,1811,285,106
 1,046,556
Commercial mortgage loans, held-for-sale31,180
 21,179
Commercial mortgage loans, held-for-sale, measured at fair value60,950
 —
Real estate securities, available-for-sale, at fair value—
 49,049
Derivative instruments, at fair value960
 —
Receivable for loan repayment (1)
53,077
 401
Accrued interest receivable6,603
 5,955
Prepaid expenses and other assets3,210
 1,916
Total assets$1,521,102
 $1,248,125
LIABILITIES AND STOCKHOLDERS' EQUITY   
Collateralized loan obligations$515,500
 $278,450
Repurchase agreements - commercial mortgage loans319,385
 257,664
Other financing - commercial mortgage loans29,956
 —
Repurchase agreements - real estate securities39,035
 66,639
Derivative instruments, at fair value1,003
 —
Interest payable1,302
 897
Distributions payable3,766
 5,591
Accounts payable and accrued expenses3,110
 1,170
Due to affiliates4,583
 4,064
Total liabilities$917,640
 $614,475
Commitment and Contingencies (See Note 8)

 

Preferred stock, $0.01 par value, 50,000,000 authorized, none issued and outstanding as of September 30, 2017 and December 31, 2016—
 —
Common stock, $0.01 par value, 949,999,000 shares authorized, 31,641,275 and 31,884,631 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively316
 319
Additional paid-in capital700,362
 704,500
Accumulated other comprehensive income (loss)—
 (500)
Accumulated deficit(97,216) (70,669)
Total stockholders' equity603,462
 633,650
Total liabilities and stockholders' equity$1,521,102
 $1,248,125
    
___________________
(1) Includes $37.5$28.2 million and $89.3 million of cash held by servicer related to CLO loan payoffs pledged to the CLOs as of September 30, 2017March 31, 2020 and December 31, 2019, respectively.

The accompanying notes are an integral part of these unaudited consolidated financial statements.

2
BENEFIT STREET PARTNERS REALTY TRUST, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for share and per share data)
(Unaudited)


Three Months Ended September 30, Nine Months Ended September 30,Three Months Ended March 31,
2017 2016 2017 20162020 2019
Interest income:       
Income:   
Interest income$22,195
 $20,250
 $61,917
 $60,763
$47,854
 $46,511
Less: Interest expense8,845
 7,317
 21,990
 17,478
24,492
 20,366
Net interest income13,350
 12,933
 39,927
 43,285
23,362
 26,145
Revenue from real estate owned1,629
 —
Total Income$24,991
 $26,145
   
Expenses:          
Asset management and subordinated performance fee2,299
 1,066
 6,952
 7,091
3,912
 3,644
Acquisition fees and acquisition expenses1,685
 255
 4,175
 635
Acquisition expenses142
 248
Administrative services expenses1,480
 2,480
 3,285
 3,835
4,112
 3,963
Professional fees1,348
 2,154
 3,320
 4,226
2,784
 2,095
Real estate owned operating expenses1,645
 —
Depreciation and amortization588
 —
Other expenses1,411
 686
 2,773
 2,092
1,587
 896
Total expenses8,223
 6,641
 20,505
 17,879
14,770
 10,846
Other (income)/loss:          
Loan loss (recovery)/provision(641) (113) (222) 721
Realized (gain) loss on commercial mortgage loans held-for-sale(378) —
 1,587
 —
Realized (gain) loss on sale of real estate securities—
 1,032
 (172) 1,032
Unrealized (gain) loss on commercial mortgage loans held-for-sale27
 —
 (220) —
Unrealized (gain) loss on derivatives(583) —
 (583) —
Realized (gain) loss on derivatives18
 —
 18
 —
Increase/(decrease) for credit losses14,597
 2,495
Impairment losses on real estate owned assets398
 —
Realized (gain)/loss on sale of real estate securities438
 —
Realized (gain)/loss on sale of commercial mortgage loan held-for-sale—
 25
Realized (gain)/loss on sale of commercial mortgage loan, held-for-sale, measured at fair value(9,404) (11,181)
Unrealized (gain)/loss on commercial mortgage loans, held-for-sale, measured at fair value1,934
 336
Unrealized (gain)/loss on other real estate investments, measured at fair value
61
 —
Unrealized (gain)/loss on derivatives4,836
 1,066
Realized (gain)/loss on derivatives6,669
 1,458
Total other (income)/loss$(1,557) $919
 $408
 $1,753
$19,529
 $(5,801)
Income (loss) before taxes6,684
 5,373
 19,014
 23,653
Income tax expense (benefit)(291) —
 (291) —
Net income$6,975
 $5,373
 $19,305
 $23,653
Income/(loss) before taxes(9,308) 21,100
Provision/(benefit) for income tax(1,908) 1,210
Net income/(loss)$(7,400) $19,890
Net income/(loss) applicable to common stock$(11,915) $16,108
          
Basic net income per share$0.22
 $0.17
 $0.61
 $0.75
Diluted net income per share$0.22
 $0.17
 $0.61
 $0.75
Basic earnings per share$(0.27) $0.40
Diluted earnings per share$(0.27) $0.40
Basic weighted average shares outstanding31,741,679
 31,516,876
 31,778,169
 31,622,796
44,263,334
 39,798,215
Diluted weighted average shares outstanding31,756,503
 31,523,911
 31,790,267
 31,629,070
44,274,852
 39,811,304

The accompanying notes are an integral part of these unaudited consolidated financial statements.


3

BENEFIT STREET PARTNERS REALTY TRUST, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)
(Unaudited)


 Three Months Ended September 30, Nine Months Ended September 30, 
 2017 2016 2017 2016 
Net income$6,975
 $5,373
 $19,305
 $23,653
 
Unrealized gain/(loss) on available-for-sale securities(448) 2,608
 500
 35
 
Comprehensive income attributable to Benefit Street Partners Realty Trust, Inc.
$6,527
 $7,981
 $19,805
 $23,688
 
  Three months ended March 31,
  2020 2019
Net income/(loss) $(7,400) $19,890
Unrealized gain/(loss) on available for sale securities (67,607) 145
Comprehensive income attributable to Benefit Street Partners Realty Trust, Inc. $(75,007) $20,035

The accompanying notes are an integral part of these unaudited consolidated financial statements.


4

BENEFIT STREET PARTNERS REALTY TRUST, INC.

INC
CONSOLIDATED STATEMENTSTATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(In thousands, except for share data)
(Unaudited)



 Common Stock        Common Stock        
 Number of Shares Par Value Additional Paid-In Capital Accumulated Other Comprehensive Income Accumulated Deficit Total Stockholders' EquityNumber of Shares Par Value Additional Paid-In Capital Accumulated Other Comprehensive Loss Accumulated Deficit Total Stockholders' Equity
Balance, December 31, 2016 31,884,631
 $319
 $704,500
 $(500) $(70,669) $633,650
Balance, December 31, 201943,916,815
 $441
 $903,310
 $(978) $(85,968) $816,805
Issuance of common stock650,034
 7
 10,855
 —
 —
 10,862
Common stock repurchases (1,072,708) (11) (20,536) —
 —
 (20,547)(361,829) (4) (6,711) —
 —
 (6,715)
Common stock issued through distribution reinvestment plan 823,368
 8
 16,342
 —
 —
 16,350
191,326
 1
 3,548
 —
 —
 3,549
Share-based compensation 5,984
 —
 56
 —
 —
 56
—
 —
 39
 —
 —
 39
Offering Cost—
 —
 (136) —
 —
 (136)
Net income/(loss)—
 —
 —
 —
 (7,400) (7,400)
Distributions declared—
 —
 —
 —
 (20,371) (20,371)
Cumulative-effect adjustment upon adoption of ASU 2016-13 (Note 2)—
 —
 —
 —
 (7,761) (7,761)
Other comprehensive income—
 —
 —
 (67,607) —
 (67,607)
Balance, March 31, 202044,396,346
 $445
 $910,905
 $(68,585) $(121,500) $721,265
           
Balance, December 31, 201839,303,710
 $395
 $827,558
 $(459) $(94,266) $733,228
Issuance of common stock1,161,580
 11
 19,398
 —
 —
 19,409
Common stock repurchases(387,530) (4) (7,203) —
 —
 (7,207)
Common stock issued through distribution reinvestment plan180,906
 2
 3,390
 —
 —
 3,392
Share-based compensation—
 —
 39
 —
 —
 39
Offering costs—
 —
 (382) —
 —
 (382)
Net income —
 —
 —
 —
 19,305
 19,305
—
 —
 —
 —
 19,890
 19,890
Distributions declared —
 —
 —
 —
 (45,852) (45,852)—
 —
 —
 —
 (17,449) (17,449)
Other comprehensive income —
 —
 —
 500
 —
 500
—
 $—
 $—
 $145
 $—
 $145
Balance, September 30, 2017 31,641,275
 $316
 $700,362
 $—
 $(97,216) $603,462
Balance, March 31, 201940,258,666
 $404
 $842,800
 $(314) $(91,825) $751,065

The accompanying notes are an integral part of these unaudited consolidated financial statements.



-45
Table of Contents
BENEFIT STREET PARTNERS REALTY TRUST, INC.

INC
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)



Nine Months Ended September 30,Three Months Ended March 31,
2017 20162020 2019
Cash flows from operating activities:      
Net income$19,305
 $23,653
Adjustments to reconcile net income to net cash provided by operating activities:   
Net income (loss)$(7,400) $19,890
Adjustments to reconcile net income (loss) to net cash (used in)/provided by operating activities:   
Premium amortization and (discount accretion), net(1,617) (1,761)(1,710) (1,506)
Accretion of deferred commitment fees(1,887) (1,169)(1,233) (406)
Amortization of deferred financing costs3,735
 2,989
5,684
 1,106
Share-based compensation56
 27
39
 39
Change in unrealized losses on commercial mortgage loans held-for-sale(220) —
Change in unrealized losses on real estate securities—
 1,032
Change in unrealized losses on derivative instruments(583) —
Realized loss on sale of commercial mortgage loans1,587
 —
Loan loss (recovery)/provision(222) 721
Deferred income taxes(291) —
Realized (gain)/loss on sale of real estate securities438
 —
Unrealized (gain)/loss on commercial mortgage loans held-for-sale1,934
 336
Unrealized (gain)/loss on derivative instruments4,836
 1,066
Unrealized (gain)/loss on other real estate investments61
 —
Depreciation and amortization588
 —
Recognition of deferred rent revenue(89) —
Increase/(decrease) for credit losses14,597
 2,495
Impairment losses on real estate owned assets398
 —
Origination of commercial mortgage loans, held-for-sale(119,349) (202,950)
Proceeds from sale of commercial mortgage loans, held-for-sale138,164
 177,138
Changes in assets and liabilities:      
Accrued interest receivable1,240
 1,213
1,664
 (437)
Prepaid expenses and other assets(4,717) 49
(6,300) (1,845)
Accounts payable and accrued expenses3,084
 1,415
(2,068) 772
Due to affiliates519
 (1,529)9,249
 94
Interest payable405
 913
(2,072) 458
Net cash provided by operating activities$20,394
 $27,553
Net cash (used in)/provided by operating activities$37,431
 $(3,750)
Cash flows from investing activities:      
Origination and purchase of commercial mortgage loans, held for investment$(565,094) $(42,236)$(287,644) $(310,904)
Origination of commercial mortgage loans, held-for-sale, measured at fair value
(60,950) —
Receivable for loan repayment(52,676) —
Proceeds from sale of real estate securities34,888
 —
Principal repayments received on commercial mortgage loans, held for investment426,742
 235,633
Purchase of other real estate investments(624) —
Purchase of real estate securities(134,818) (40,200)
Principal repayments received on real estate securities15,000
 2,218
643
 57
Purchase of derivative instruments(383) —
(689) (522)
Proceeds from sale of commercial mortgage loans, held for sale88,352
 69,957
Principal repayments received on commercial mortgage loans, held for investment228,814
 48,906
Net cash (used in)/provided by investing activities$(312,049) $78,845
$3,610
 $(115,936)
Cash flows from financing activities:      
Proceeds from issuances of common stock$10,726
 $19,409
Proceeds from issuances of redeemable convertible preferred stock70
 14,979
Common stock repurchases$(20,546) $(19,026)(6,716) (7,207)
Borrowings under collateralized loan obligations339,500
 —
Repayments of collateralized loan obligations(97,470) —
Repayments of collateralized loan obligation(68,894) (200,426)
Borrowings on repurchase agreements - commercial mortgage loans368,745
 104,626
65,413
 490,189
Repayments of repurchase agreements - commercial mortgage loans(307,024) (68,997)(83,432) (268,740)
Borrowings on repurchase agreements - real estate securities343,151
 1,019,598
340,116
 167,587
Repayments of repurchase agreements - real estate securities(370,754) (1,064,111)(237,596) (190,048)
Borrowings on other financing - commercial mortgage loans36,200
 —
Repayments on other financing - commercial mortgage loans(5,274) —
Increase (decrease) in restricted cash related to financing activities(2,733) 366
Payments of deferred financing costs(6,598) (2,836)
Distributions paid(31,328) (29,952)

-56

BENEFIT STREET PARTNERS REALTY TRUST, INC.

INC
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(In thousands)
(Unaudited)


 Nine Months Ended September 30,
 2017 2016
Net cash (used in) provided by financing activities$245,869
 $(60,332)
Net change in cash and cash equivalents$(45,786) $46,066
Cash and cash equivalents, beginning of period118,048
 14,807
Cash and cash equivalents, end of period$72,262
 $60,873



Nine Months Ended September 30,
Borrowing on other financing and loan participation - commercial mortgage loans15,190
 —
Borrowings on Mortgage Note Payable11,000
 —
Payments of deferred financing costs(75) —
Distributions paid(16,776) (13,791)
Net cash (used in)/provided by financing activities:$29,026
 $11,952
Net change in cash, cash equivalents and restricted cash$70,067
 $(107,734)
Cash, cash equivalents and restricted cash, beginning of period109,122
 204,419
Cash, cash equivalents and restricted cash, end of period$179,189
 $96,685
2017 2016   
Supplemental disclosures of cash flow information:      
Taxes paid$—
 $—
Interest paid$17,850
 $13,576
20,880
 18,802
   
Supplemental disclosures of non-cash flow information:      
Distributions payable$3,766
 $—
Distribution payable6,956
 $6,100
Common stock issued through distribution reinvestment plan16,349
 19,099
3,548
 3,392
Loans transferred to commercial real estate loans, held-for-sale, transferred
at fair value		31,207
 —
Commercial mortgage loans transferred from held for investment to held for sale9,619
 —
Real estate owned received in foreclosure14,000
 —
   
Reconciliation of cash, cash equivalents and restricted cash at end of period:   
Cash and cash equivalents$88,960
 $79,698
Restricted cash
90,229
 16,987
Cash, cash equivalents and restricted cash, end of period$179,189
 $96,685
   

The accompanying notes are an integral part of these unaudited consolidated financial statements.

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BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2017March 31, 2020
(Unaudited)


Note 1 - Organization and Business Operations
Benefit Street Partners Realty Trust, Inc. (the "Company"), formerly known as Realty Finance Trust, Inc., is a real estate finance company that primarily originates, acquires and manages a diversified portfolio of commercial real estate debt investments secured by properties located within and outside the United States. The Company was incorporated in Maryland on November 15, 2012 and commenced business operations on May 14, 2013.
The Company made a tax election to be treated as a real estate investment trust ("REIT"(a "REIT") for U.S. federal income tax purposes commencing with its taxable year ended December 31, 2013. The Company believes that it has qualified as a REIT and intends to continue to meet the requirements for qualification and taxation as a REIT. In addition, the Company, through certain of its subsidiariesa subsidiary which areis treated as a taxable REIT subsidiaries (each a “TRS”subsidiary (a "TRS"), is indirectly subject to U.S.U.S federal, state and local income taxes. Substantially allThe majority of the Company's business is conducted through Benefit Street Partners Realty Operating Partnership, L.P. (the “OP”), a Delaware limited partnership. The Company is the sole general partner and directly or indirectly holds all of the units of limited partner interests in the OP.
The Company has no direct employees. Benefit Street Partners L.L.C. serves as the Company's advisor (the "Advisor") pursuant to an advisory agreement executed on September 29, 2016Amended and Restated Advisory Agreement, dated January 19, 2018 (the “Advisory Agreement”"Advisory Agreement"). The Advisor is a wholly owned subsidiary of Franklin Resources, Inc. which, together with its various subsidiaries, operates as Franklin Templeton. Prior to February 1, 2019, the Advisor was in partnership with Providence Equity Partners L.L.C., a global private equity firm. The Advisor, an investment adviser registered with the U.S. Securities and Exchange Commission (“SEC”), is a credit-focused alternative asset management firm. Established in 2008, the Advisor's credit platform manages funds for institutions and high-net-worth investors across various credit funds and complementary strategies including high yield, levered loans, private / opportunistic debt, liquid credit, structured credit and commercial real estate debt. These strategies complement each other as they all leverage the sourcing, analytical, compliance, and operational capabilities that encompass the platform. The Advisor is in partnership with Providence Equity Partners L.L.C., a global private equity firm. The Advisor manages the Company's affairs on a day-to-day basis. The Advisor receives compensation and fees for services related to the investment and management of the Company's assets and the operations of the Company. Prior to September 29, 2016, Realty Finance Advisor, LLC ("Former Advisor") was the Company's advisor. The Former Advisor was controlled by AR Global Investments, LLC ("AR Global").
The Company invests in commercial real estate debt investments, which may include first mortgage loans, subordinated mortgage loans, mezzanine loans and participations in such loans. The Company also originates conduit loans which the Company intends to sell through its TRS into commercial mortgage-backed securities ("CMBS") securitization transactions at a profit.
The Company may also investinvests in commercial real estate securities. Real estate securities may include CMBS, senior unsecured debt of publicly traded REITs, debt or equity securities of other publicly traded real estate companies and collateralized debt obligations ("CDOs").
Realty Capital Securities, LLC, (the “Former Dealer Manager”) served as the dealer manager of the public offering of common stock conducted The Company also owns real estate, which represents real estate acquired by the Company until January 2016. The Former Advisor and Former Dealer Manager are under common control with AR Global, the parentthrough foreclosure, deed in lieu of American Realty Capital VIII, LLC (the "Former Sponsor"). As a result they are related parties and each of them received compensation and fees for services related to such offering, the investment and management of the Company's assets and the operations of the Company.

foreclosure, or purchase.
Note 2 - Summary of Significant Accounting Policies
Basis of Accounting
The accompanyingCompany's unaudited consolidated financial statements and related footnotes are unaudited and have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America (“GAAP”("GAAP") for interim financial statements and pursuant to the requirements for reporting on Form 10-Q and Regulation S-X, as appropriate. Accordingly, the consolidated financial statements may not include all of the information and notes required by GAAP for annual consolidated financial statements.
These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto as of, and for the year ended December 31, 2019, which are included in the Company's Annual Report on Form 10-K/A filed with the SEC on March 19, 2020.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2020
(Unaudited)

Use of Estimates
GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reported periods. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ materially. In the opinion of management, the interim data includes all adjustments, of a normal and recurring nature, necessary for a fair statement of the results for the periods presented. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the entire year or any subsequent interim periods.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2017
(Unaudited)

These financial statements should be readcoronavirus ("COVID-19") was reported to have surfaced in conjunction with the audited consolidated financial statementsWuhan, China. COVID-19 has since spread to over 200 countries and notes thereto as of, and for the year ended December 31, 2016, which are includedterritories, including every state in the Company's Annual Report on Form 10-K filedU.S and in cities and regions where our corporate headquarters and/or properties that secure our investments, or properties that we own, are located. On March 11, 2020, the World Health Organization declared COVID-19 a pandemic, and since then, numerous countries, including the U.S., have declared national emergencies with respect to COVID-19 and have instituted “stay-at-home” guidelines or orders to help prevent its spread. The disruptive economic effects of the SEC on March 29, 2017. ThereCOVID-19 pandemic have been no significant changes to the Company's significant accounting policiessignificantly impacted our estimates involving credit losses and fair values during the three months ended September 30, 2017.
Certain prior-period amounts have been reclassified to conform with current presentation. In the opinionMarch 31, 2020, including introducing a significant degree of management, all normal recurring adjustments considered necessary for a fair statement of the results of the interim periods have been included. The operating results for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the full year.uncertainty underlying those estimates.
Principles of Consolidation
The accompanying consolidated financial statements include the accounts of the Company, the OP and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.In determining whether the Company has a controlling financial interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the other partners or members, as well as whether the entity is a variable interest entity ("VIE") for which the Company is the primary beneficiary.
The Company has determined the OP is a VIE of which the Company is the primary beneficiary. Substantially all of the Company's assets and liabilities are held by the OP.
The Company consolidates all entities that it controls through either majority ownership or voting rights. In addition, the Company consolidates all VIEs of which the Company is considered the primary beneficiary. VIEs are entities in which equity investors (i) do not have the characteristics of a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The entity that consolidates a VIE is its primary beneficiary and is generally the entity with (i) the power to direct the activities that most significantly affect the VIE’s economic performance and (ii) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE.
The accompanying consolidated financial statements include the accounts of collateralized loan obligations ("CLOs") issued and securitized by wholly owned subsidiaries of the Company. The Company has determined the CLOs are VIEs of which the Company's subsidiary is the primary beneficiary. The assets and liabilities of the CLOs are consolidated in the accompanying consolidated balance sheetsheets in accordance with ASCFinancial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, Consolidation.Consolidation.
Acquisition Fees and Acquisition Expenses
The Company incurs acquisition fees and acquisition expenses payable to the Advisor. The Company pays the Advisor an acquisition fee based on the principal amount funded by the Company to originate or acquire commercial mortgage loan investments or on the anticipated net equity funded by the Company to acquire real estate securities. Acquisition fees and acquisition expenses paid to the Company's Advisor in connection with the origination and acquisition of commercial mortgage loan investments and acquisition of real estate securities are evaluated based on the nature of the expense to determine if they should be expensed in the period incurred or capitalized and amortized over the life of the investment. The Company capitalizes certain direct costs relating to the loan origination activities and the cost is amortized over the life of the loan.
Cash and Cash Equivalents
Cash consists of amounts deposited with high quality financial institutions. These deposits are guaranteed by the Federal Deposit Insurance Company up to an insurance limit. Cash equivalents include short-term, liquid investments in money market funds with original maturities of 90 days or less when purchased. Cash equivalents includes a $10.3 million certificate of deposit.
Restricted Cash
Restricted cash primarily consists of cash pledged as margin on repurchase agreements and derivative transactions. The Advisor receives an acquisition feeduration of 1.0%this restricted cash generally matches the duration of the principal amount funded by the Company to originaterelated repurchase agreements or acquire commercial mortgage loans (or anticipated net equity funded by the Company in the case of acquisition of real estate securities) and receives reimbursement for insourced acquisition expenses of 0.5%; provided, however, that if and when the aggregate purchase price for all investments acquired after the date of the Advisory Agreement reaches $600,000,000, the Company’s obligation to pay acquisition fees to the Advisor shall terminate. There is no such limitation on the acquisition expense reimbursements. In September 2017, the Company's aggregate purchase price for all investments acquired reached $600,000,000, and concurrently terminated the 1.0% acquisition fee payments to the Advisor for all investments subsequent to the limit being reached.derivative transaction.

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BENEFIT STREET PARTNERS REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2020
(Unaudited)

Commercial Mortgage Loans
Held-for-InvestmentHeld for Investment - - Commercial mortgage loans that are held for investment purposes and are anticipated to be held until maturity, are carried at cost, net of unamortized acquisition expenses, discounts or premiums and unfunded commitments. Commercial mortgage loans, held for investment purposes, that are deemed to be impaired are carried at amortized cost less a specific allowance for loancredit losses. Interest income is recorded on the accrual basis and related discounts, premiums and acquisition expenses on investments are amortized over the life of the investment using the effective interest method. Amortization is reflected as an adjustment to interest income in the Company’s consolidated statements of operations. Guaranteed loan exit fees payable by the borrower upon maturity are accreted over the life of the investment using the effective

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2017
(Unaudited)

interest method. The accretion of guaranteed loan exit fees is recognized in interest income in the Company's consolidated statements of operation.operations.
Held-for-Sale - - Commercial mortgage loans that are intended to be sold in the foreseeable future are reported as held-for-sale and are transferred at fair value and recorded at the lower of cost or fair value with changes recorded through the statements of operations. Unamortized loan origination costs for commercial mortgage loans held-for-sale that are carried at the lower of cost or fair value are capitalized as part of the carrying value of the loans and recognized upon the sale of such loans. Amortization of origination costs ceases upon transfer of commercial mortgage loans to held-for-sale.
Held-for-Sale, Accounted for Under the Fair Value Option - The fair value option provides an option to elect fair value as an alternative measurement for selected financial assets, financial liabilities, unrecognized firm commitments, and written loan commitments. As of September 30, 2017, theThe Company has elected to measure commercial mortgage loans held-for-sale in the Company's TRS under the fair value option to better reflect those commercial mortgage loans that are part of securitization warehousing activity.option. These commercial mortgage loans are included in the Commercial mortgage loans, held-for-sale, measured at fair value in the consolidated balance sheet.sheets. Interest income received on Commercialcommercial mortgage loans held-for-sale is recorded on the accrual basis of accounting and is included in interest income in the consolidated statements of operations.
As of September 30, 2017, the fair value carrying amount and the contractual principal outstanding of commercial mortgage loans accounted for under the fair value option was $61.0 million. None of the Company's commercial mortgage loans accounted for under the fair value option are in default or greater than ninety days past due. For the three and nine months ended September 30, 2017, there were no gains or losses relating to the Company's commercial mortgage loans that are accounted for under the fair value option. Acquisition expenses on originating these investments are expensed when incurred. As of December 31, 2016,
Real estate owned
Real estate owned (“REO”) represents real estate acquired by the Company did not account for anythrough foreclosure, deed in lieu of its commercial mortgage loans underforeclosure, or purchase. REO assets are carried at their estimated fair value at acquisition and are presented net of accumulated depreciation and impairment charges. The Company allocates the purchase price of acquired real estate assets based on the fair value option.of the acquired land, building, furniture, fixtures and equipment.
Real estate assets are depreciated using the straight-line method over estimated useful lives of up to 40 years for buildings and improvements and up to 15 years for furniture, fixtures and equipment. Renovations and/or replacements that improve or extend the life of the real estate asset are capitalized and depreciated over their estimated useful lives.
Leases
Operating right of use assets "ROU" represent the Company’s right to use an underlying asset during the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement date based on the present value of fixed lease payments over the lease term. Leases will be classified as either a finance or operating lease, with such classification affecting the pattern and classification of expense recognition in the consolidated statements of operations. For leases greater than 12 months, the Company determines, at the inception of the contract, if the arrangement meets the classification criteria for an operating or finance lease. For leases that have extension options, which can be exercised at the Company's discretion, management uses judgment to determine if it is reasonably certain that such extension options will be elected. If the extension options are reasonably certain to occur, the Company includes the extended term's lease payments in the calculation of the respective lease liability. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The incremental borrowing rate used to discount the lease liability is determined at commencement of the lease, or upon modification of the lease, as the interest rate a lessee would have to pay to borrow on a fully collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. The Company's incremental borrowing rate considers information at both the corporate and property level and analysis of current market conditions for obtaining new financings. All leases as of March 31, 2020 were operating leases.
Separately, on October 15, 2019, the Company acquired certain real estate assets which had an existing in-place lease asset. This in-place lease asset is recorded as an Intangible lease asset on the consolidated balance sheets and amortized using the straight-line method over the contractual life of the lease.

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BENEFIT STREET PARTNERS REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2020
(Unaudited)

Credit Losses
In June 2016, the FASB issued Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments-Credit Losses, which amends the credit impairment model for financial instruments. The Company adopted ASU 2016-13 on January 1, 2020.
Following our adoption of ASU 2016-13, our previous incurred loss model was replaced with a lifetime current expected credit loss (“CECL”) model for financial instruments carried at amortized cost and off-balance sheet credit exposures, such as loans, loan commitments, held-to-maturity (“HTM”) debt securities, financial guarantees, net investments in leases, reinsurance and trade receivables, which will generally result in earlier recognition of allowance for losses. For available for sale (“AFS”) debt securities, unrealized credit losses are recognized as allowances rather than reductions in amortized cost basis and elimination of the other than temporary impairment concept will result in more frequent estimation of credit losses. The accounting model for purchased credit impaired loans and debt securities has been simplified, including elimination of some of the asymmetrical treatment between credit losses and credit recoveries, to be consistent with the CECL model for originated and purchased non-credit impaired assets. The existing model for beneficial interests that are not of high credit quality was amended to conform to the new impairment models for HTM and AFS debt securities. Upon adoption of ASU 2016-13 on January 1, 2020, we recorded an additional allowance for credit losses for our outstanding loans and unfunded loan commitments of $7.8 million, or $0.18 per share, which was 0.27% of the aggregate commitment amount of the Company’s loan portfolio at December 31, 2019.
 Pre-adoptionTransition AdjustmentPost-adjustment
Assets  
Commercial mortgage loans, held for investment, net of allowance2,762,042
(7,211)2,754,831
Liabilities  

Accounts payable and accrued expenses (1)

10,925
(550)10,375
Equity  —
Accumulated deficit(85,968)(7,761)(93,729)
___________________
(1) Includes allowance associated with unfunded loan commitment.
The following discussion highlights changes to the Company’s accounting policies as a result of this adoption.
Allowance for Loan Lossescredit losses
The allowance for credit losses for the Company’s financial instruments carried at amortized cost and off-balance sheet credit exposures, such as loans held for investment and unfunded loan losses reflects management'scommitments represents a lifetime estimate of expected credit losses. Factors considered by the Company when determining the allowance for credit losses reserve include loan-specific characteristics such as loan-to-value (“LTV”) ratio, vintage year, loan losses inherent in the loan portfolio asterm, property type, occupancy and geographic location, financial performance of the balance sheet date. The reserve is increased through the loan loss provision on the Company's consolidated statementsborrower, expected payments of operationsprincipal and is decreased by charge-offs when losses are confirmed through the receipt of assets, suchinterest, as cash in a pre-foreclosure salewell as internal or upon ownership control of the underlying collateral in full satisfaction of the loan upon foreclosure or when significant collection efforts have ceased. The Company uses a uniform process for determining its allowance for loan losses. external information relating to past events, current conditions and reasonable and supportable forecasts.
The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist for multiple financial instruments. If similar risk characteristics do not exist, the Company measures the allowance for credit losses on an individual instrument basis. The determination of whether a particular financial instrument should be included in a pool can change over time. If a financial asset’s risk characteristics change, the Company evaluates whether it is appropriate to continue to keep the financial instrument in its existing pool or evaluate it individually.
In measuring the allowance for credit losses for financial instruments including our unfunded loan commitments that share similar risk characteristics, the Company primarily applies a probability of default (“PD”)/loss given default (“LGD”) model for instruments that are collectively assessed, whereby the allowance for credit losses includesis calculated as the product of PD, LGD and exposure at default (“EAD”). The Company’s model principally utilizes historical loss rates derived from a general, formula-based componentcommercial mortgage backed securities database with historical losses from 1998 to 2020 provided by a reputable third party, forecasting the loss parameters using a scenario-based statistical approach over a reasonable and supportable forecast period of twelve months, followed by an asset-specific component.
General reserves are recordedimmediate reversion to average historical losses. For financial instruments assessed on an individual basis, including when (i) available information as of each balance sheet date indicates that it is probable that the Company will be unable to collect the full payment of principal and interest on the instrument, the Company applies a loss has occurred indiscounted cash flow (“DCF”) methodology.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2020
(Unaudited)

For financial instruments where the portfolioborrower is experiencing financial difficulty based on the Company’s assessment at the reporting date and (ii) the amountrepayment is expected to be provided substantially through the operation or sale of the loss can be reasonably estimated. The Company estimates loss rates based on historical realized losses experienced in the industry, given the factcollateral, the Company has not experienced any losses, and takes into account currentmay elect to use as a practical expedient the fair value of the collateral and economic conditions affectingat the probability and severity of lossesreporting date when establishingdetermining the allowance for loancredit losses. The
In developing the allowance for credit losses for its loans held for investment, the Company performs a comprehensive analysis of its loan portfolio and assigns risk ratings to loans that incorporate management's current judgments about their credit quality based on all known and relevant internal and external factors that may affect collectability. The Company considers, among other things, payment status, lien position, borrower financial resources and investmentcollectability, using similar factors as those in collateral, collateral type, project economics and geographic location as well as national and regional economic factors.developing the allowance for credit losses. This methodology results in loans being segmented by risk classification into risk rating categories that are associated with estimated probabilities of default and principal loss. RatingsRisk rating categories range from "1" to "5" with "1" representing the lowest risk of loss and "5" representing the highest risk of loss.loss with the ratings updated quarterly. At the time of origination or purchase, loans held for investment are ranked as a “2” and will move accordingly going forward based on the ratings which are defined as follows:
1.
Very Low Risk- Investment exceeding fundamental performance expectations and/or capital gain expected. Trends and risk factors since time of investment are favorable.
2.
Low Risk- Performing consistent with expectations and a full return of principal and interest expected. Trends and risk factors are neutral to favorable.
3.
Average Risk- Performing investments requiring closer monitoring. Trends and risk factors show some deterioration.
4.
High Risk/Delinquent/Potential for Loss- Underperforming investment with the potential of some interest loss but still expecting a positive return on investment. Trends and risk factors are negative.
5.
Impaired/Defaulted/Loss Likely- Underperforming investment with expected loss of interest and some principal.
The Company also considers qualitative and environmental factors, including, but not limited to, economic and business conditions, nature and volume of the loan portfolio, lending terms, volume and severity of past due loans, concentration of credit and changes in the level of such concentrations in its determination of the allowance for credit losses.
Changes in the allowance for credit losses for the Company’s financial instruments are recorded in Increase/(decrease) for
credit losses on the consolidated statements of operations with a corresponding offset to the financial instrument’s amortized cost recorded on the consolidated balance sheets, or as a component of Accounts payable and accrued expenses for unfunded loan commitments.
The asset-specific reserve component relatesCompany has elected to reservesnot measure an allowance for credit losses for accrued interest receivable as it is reversed against interest income when a loan or preferred equity investment is placed on individual impaired loans. Thenonaccrual status. Loans are charged off against the Increase/(decrease) for credit losses when all or a portion of the principal amount is determined to be uncollectible.
Past due and nonaccrual status
Loans are placed on nonaccrual status and considered non-performing when full payment of principal and interest is unpaid for 90 days or more or where reasonable doubt exists as to timely collection, unless the loan is both well secured and in the process of collection. Interest received on nonaccrual status loans are accounted for under the cost-recovery method, until qualifying for return to accrual. Upon restructuring the nonaccrual loan, the Company considersmay return a loan to be impairedaccrual status when based upon current informationrepayment of principal and events,interest is reasonably assured.
Troubled Debt Restructuring (“TDR”)
The Company classifies an individual financial instrument as a TDR when it believes that it is probablehas a reasonable expectation that the Companyfinancial instrument’s contractual terms will be unablemodified in a manner that grants concession to collectthe borrower who is experiencing financial difficulty. Concessions could include term extensions, payment deferrals, interest rate reductions, principal forgiveness, forbearance, or other actions designed to maximize the Company’s collection on the financial instrument. The Company determines the allowance for credit losses for financial instruments that are TDRs individually.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2020
(Unaudited)

Real Estate Securities
On the acquisition date, all amounts due under the contractual terms of the loan agreement. This assessment is made on an individual loan basis each quarter basedCompany’s commercial real estate securities were classified as available for sale and carried at fair value, and subsequently any unrealized gains or losses are recognized as a component of accumulated other comprehensive income or loss. The Company may elect the fair value option for its real estate securities, and as a result, any unrealized gains or losses on such factorsreal estate securities will be recorded in the Company’s consolidated statements of operations. No such election has been made to date. Related discounts, premiums and acquisition expenses on investments are amortized over the life of the investment using the effective interest method. Amortization is reflected as payment status, lien position,an adjustment to interest income in the Company’s consolidated statements of operations.
AFS real estate securities which have experienced a decline in the fair value below their amortized cost basis (i.e., impairment) are evaluated each reporting period to determine whether the decline in fair value is due to credit-related factors. Any impairment that is not credit-related is recognized in other comprehensive income, while credit-related impairment is recognized as an allowance on the consolidated balance sheets with a corresponding adjustment on the consolidated statements of operations. If the Company intends to sell an impaired real estate security or more likely than not will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount is recognized in the consolidated statements of operations with a corresponding adjustment to the security’s amortized cost basis.
The Company analyzes the AFS security portfolio on a periodic basis for credit losses at the individual security level using the same criteria described above for those amortized cost financial assets subject to an allowance for credit losses including but not limited to; performance of the underlying assets in the security, borrower financial resources and investment in collateral, collateral type, credit ratings, project economics and geographicalgeographic location as well as national and regional economic factors. A reserve
The non-credit loss component of the unrealized loss within the Company’s AFS portfolio is established forrecognized as an impaired loanadjustment to the individual security’s asset balance with an offsetting entry to other comprehensive income in the consolidated balance sheets.
Repurchase Agreements
Commercial mortgage loans and real estate securities sold under repurchase agreements have been treated as collateralized financing transactions because the Company maintains effective control over the transferred securities. Commercial mortgage loans and real estate securities financed through a repurchase agreement remain on the Company’s consolidated balance sheets as an asset and cash received from the purchaser is recorded as a liability. Interest paid in accordance with repurchase agreements is recorded in interest expense on the Company's consolidated statements of operations.
Deferred Financing Costs
The deferred financing costs related to the Company's various Master Repurchase Agreements as well as certain prepaid subscription costs are included in Prepaid expenses and other assets on the consolidated balance sheets. Deferred financing cost on the Company's collateralized debt obligations ("CLO") are netted against the Company's CLO payable in the Collateralized debt obligations on the consolidated balance sheets. Deferred financing costs are amortized over the terms of the respective financing agreement using the effective interest method and included in interest expense on the Company's consolidated statements of operations. Unamortized deferred financing costs are generally expensed when the presentassociated debt is refinanced or repaid before maturity.
Share Repurchase Program
The Company has a Share Repurchase Program (the "SRP"), which became effective as of February 28, 2016, that enables stockholders to sell their shares to the Company.
Subject to certain conditions, stockholders that purchased shares of our common stock or received their shares from us (directly or indirectly) through one or more non-cash transactions and have held their shares for a period of at least one year may request that we repurchase their shares of common stock so long as the repurchase otherwise complies with the provisions of Maryland law. Repurchase requests made following the death or qualifying disability of a stockholder will not be subject to any minimum holding period.
On August 10, 2017, our board of directors amended the SRP to provide that the repurchase price per share for requests will be equal to the lesser of (i) our most recent estimated per-share NAV, as approved by our board of directors from time to time, and (ii) our book value per share, computed in accordance with GAAP, multiplied by a percentage equal to (i) 92.5%, if the person seeking repurchase has held his or her shares for a period greater than one year and less than two years; (ii) 95%, if the person seeking repurchase has held his or her shares for a period greater than two years and less than three years; (iii) 97.5%, if the person seeking repurchase has held his or her shares for a period greater than three years and less than four years; or (iv) 100%, if the person seeking repurchase has held his or her shares for a period greater than four years or in the case of payments expected to be received, observable market pricesrequests for death or the estimated fair value of the collateral (for loans that are dependent on the collateral for repayment) is lower than the carrying value of that loan.
For collateral dependent impaired loans, impairment is measured using the estimated fair value of collateral less the estimated cost to sell. Valuations are performed or obtained at the time a loan is determined to be impaired and designated non-performing, and they are updated if circumstances indicate that a significant change in value has occurred. The Advisor generally will use the income approach through internally developed valuation models to estimate the fair value of the collateral for such loans. In more limited cases, the Advisor will obtain external "as is" appraisals for loan collateral, generally when thirddisability.

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March 31, 2020
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Repurchases pursuant to the SRP, when requested, generally will be made semiannually (each six-month period ending June 30 or December 31, a “fiscal semester”). Repurchases for any fiscal semester will be limited to a maximum of 2.5% of the weighted average number of shares of common stock outstanding during the previous fiscal year, with a maximum for any fiscal year of 5.0% of the weighted average number of shares of common stock outstanding during the previous fiscal year. Funding for repurchases pursuant to the SRP for any given fiscal semester will be limited to proceeds received during that same fiscal semester through the issuance of common stock pursuant to any Dividend Reinvestment Plan ("DRIP") in effect from time to time, provided that the board of directors has the power, in its sole discretion, to determine the amount of shares repurchased during any fiscal semester as well as the amount of funds to be used for that purpose. On March 26, 2020, the Company temporarily suspended the DRIP. Therefore amounts available to fund repurchases for the first fiscal semester of 2020 will be limited to DRIP proceeds from January and February 2020, and amounts available to fund repurchases for the second fiscal semester of 2020 will depend on the amount of dividends paid and the reactivation of the DRIP. Due to these limitations, we cannot guarantee that we will be able to accommodate all repurchase requests made during any fiscal semester or fiscal year. However, a stockholder may withdraw its request at any time or ask that we honor the request when funds are available. Pending repurchase requests will be honored on a pro rata basis. We will generally pay repurchase proceeds, less any applicable tax or other withholding required by law, by the 31st day following the end of the fiscal semester during which the repurchase request was made.
When a stockholder requests a redemption and the redemption is approved by the board of directors, the Company will reclassify such obligation from equity to a liability based on the settlement value of the obligation. Shares repurchased under the SRP will have the status of authorized but unissued shares.
Offering and Related Costs
The Company is currently offering shares of the Company’s common stock, Series A convertible preferred stock (“Series A Preferred Stock”) and Series C convertible preferred stock (the “Series C Preferred Stock,” and, together with the Series A Preferred stock, the “Preferred Stock”) in private placements exempt from the registration requirements of the Securities Act of 1933, as amended (the “Offering”). In connection with the Offering, the Company incurred various offering costs and will continue to incur these costs until the Offering is complete. These offering costs include but are not limited to legal, accounting, printing, mailing and filing fees, and diligence expenses of broker-dealers. Offering costs for the common stock are recorded in the Company’s stockholders’ equity, while the offering costs for the Preferred Stock are included within Redeemable convertible preferred stock Series A and Redeemable convertible preferred stock series C, respectively, on the Company’s consolidated balance sheets.
Distribution Reinvestment Plan
Pursuant to the DRIP, stockholders may elect to reinvest distributions by purchasing shares of common stock in lieu of receiving cash. No dealer manager fees or selling commissions are paid with respect to shares purchased pursuant to the DRIP. Participants purchasing shares pursuant to the DRIP have the same rights and are treated in the same manner as if such shares were issued pursuant to the Offering. The board of directors may designate that certain cash or other distributions be excluded from the DRIP. The Company has the right to amend any aspect of the DRIP or terminate the DRIP with ten days’ notice to participants. Shares issued under the DRIP are recorded to equity in the consolidated balance sheets in the period distributions are declared. On March 26, 2020, the Company temporarily suspended the DRIP. Until the Company reactivates the DRIP, stockholder participants will receive any distributions paid by the Company in cash.

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BENEFIT STREET PARTNERS REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2017March 31, 2020
(Unaudited)

party participations exist.
A loan is also considered impaired if its terms are modified in a troubled debt restructuring ("TDR"). A TDR occurs when a concession is granted and the debtor is experiencing financial difficulties. Impairments on TDR loans are generally measured based on the present value of expected future cash flows discounted at the effective interest rate of the original loans.Income Taxes
The Company designates non-performing loanshas conducted its operations to qualify as a REIT for U.S. federal income tax purposes beginning with its taxable year ended December 31, 2013. As a REIT, if the Company meets certain organizational and operational requirements and distributes at such time as (i) loan payments become 90-days past due; (ii)least 90% of its "REIT taxable income" (determined before the loan hasdeduction of dividends paid and excluding net capital gains) to its stockholders in a maturity default; or (iii) inyear, it will not be subject to U.S. federal income tax to the opinionextent of the Company,income that it is probabledistributes. However, even if the Company willqualifies for taxation as a REIT, it may be unablesubject to collectcertain state and local taxes on income in addition to U.S. federal income and excise taxes on its undistributed income. The Company, through its TRS, is indirectly subject to U.S. federal, state and local income taxes. The Company’s TRS is not consolidated for U.S. federal income tax purposes, but is instead taxed as a C corporation. For financial reporting purposes, the TRS is consolidated and a provision for current and deferred taxes is established for the portion of earnings recognized by the Company with respect to its interest in its TRS. Total income tax (benefit) expense for the three months ended March 31, 2020 and March 31, 2019 were $(1.9) million and $1.2 million, respectively.
The Company uses a more-likely-than-not threshold for recognition and derecognition of tax positions taken or to be taken in a tax return. The Company has assessed its tax positions for all open tax years beginning with December 31, 2016 and concluded that there were no uncertainties to be recognized. The Company’s accounting policy with respect to interest and penalties related to tax uncertainties is to classify these amounts due accordingas provision for income taxes.
The Company utilizes the TRS to reduce the contractual termsimpact of the loan. Income recognition will be suspended whenprohibited transaction tax and to avoid penalty for the holding of assets not qualifying as real estate assets for purposes of the REIT asset tests. Any income associated with a loanTRS is designated non-performingfully taxable because the TRS is subject to federal and resumed only when the suspended loan becomes contractually current and performance is demonstrated to have resumed. A loan will be written off when it is no longer realizable and legally discharged.state income taxes as a domestic C corporation based upon its net income.
Derivatives and Hedging Activities
In the normal course of business, the Company is exposed to the effect of interest rate changes and may undertake a strategy to limit these risks through the use of derivatives.  The Company uses derivatives primarily to economically hedge against interest rates, CMBS spreads and macro market risk in order to minimize volatility.  The Company may use a variety of derivative instruments that are considered conventional, such asincluding but not limited to: Treasury note futures and credit derivatives on various indices including CMBX and CDX.
The Company recognizes all derivatives on the consolidated balance sheets at fair value.  The Company does not designate derivatives as hedges to qualify for hedge accounting for financial reporting purposes and therefore any net payments under, or fluctuations in the fair value of these derivatives have been recognized currently in unrealized gain/(loss) on derivative instruments in the accompanying consolidated statements of operations. The Company records derivative asset and liability positions on a gross basis with any collateral posted with or received from counterparties recorded separately within Restricted cash on the Company’s consolidated balance sheets. Certain derivatives that the Company has entered into are subject to master netting agreements with its counterparties, allowing for netting of the same transaction, in the same currency, on the same date.
Per Share Data
The Company’s Preferred Stock is considered a participating security. As such, the Company is required to include the Preferred Stock in the calculation of basic earnings per share and calculate basic earnings per share using the two-class method. The Company’s dilutive earnings per share calculation is computed using the more dilutive result of the treasury stock method, assuming the participating security is a potential common share, or the two-class method, assuming the participating security is not converted. The Company calculates basic earnings per share by dividing net income attributableapplicable to the Companycommon stock for the period by the weighted-average number of shares of common stock outstanding for that period. Diluted earnings per share reflects the potential dilution that could occur from shares issuableoutstanding if potential shares of common stock with a dilutive effect have been issued in connection with the restricted stock plan and if convertibleor upon conversion of the outstanding shares were exercised,of the Company’s Preferred Stock, except when doing so would be anti-dilutive.

15
BENEFIT STREET PARTNERS REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2020
(Unaudited)

Reportable Segments
The Company has determined that it has threefour reportable segments based on how the chief operating decision maker reviews and manages the business. The threefour reporting segments are as follows:
The real estate debt business which is focused on originating, acquiring and asset managing commercial real estate debt investments, including first mortgage loans, subordinate mortgages, mezzanine loans and participations in such loans.
The real estate securities business which is focused on investing in and asset managing commercial real estate securities primarily consisting of CMBS and may include unsecured REIT debt, CDO notes and other securities.
The commercial conduit operated business throughin the Company's TRS, which is focused on originating and subsequently selling fixed-rate commercial real estate loans into the CMBS securitization market at a profit.market.
The real estate owned business represents real estate acquired by the Company through foreclosure, deed in lieu of foreclosure, or purchase.
See Note 1315 - Segment Reporting for further information regarding the Company's segments.
Recently Issued Accounting PronouncementsRedeemable Convertible Preferred Stock
In March 2016,The Company’s Preferred Stock is classified outside of permanent equity in the Financial Accounting Standards Board ("FASB"consolidated balance sheets. Subject to certain conditions, the Preferred Stock is redeemable at the option of the holder of Preferred Stock, outside of the control of the Company. As set forth in the Articles Supplementary relating to each of the Series A Preferred Stock and the Series C Preferred Stock (the “Articles Supplementary”) issued guidance which requiresto the Company’s Articles of Amendment and Restatement, the Preferred Stock is redeemable for shares of the Company's common stock, $0.01 par value per share (the "Common Stock") at the option of the shareholder upon a change of control (as defined in the Articles Supplementary) or after the sixth anniversary of the date of issuance. A change in control of the Company occurs if any person acquires more than 50% of the total economic interests or voting power of all securities of the Company, other than in a liquidity event.
Shares of Preferred Stock rank senior to shares of Common Stock with respect to rights to receive dividends and to participate in distributions or payments upon any voluntary or involuntary liquidation, dissolution or winding up of the Company. Dividends payable on each share of Preferred Stock will be equal to the greater of (i) an entityamount equal to determine whether$16.67 per share and (ii) the naturemonthly dividend that would have been paid had such share of its promise to provide goods or servicesPreferred Stock been converted to a customershare of Common Stock, subject to proration in the event that such share of Preferred Stock was not outstanding for the full month.
Immediately prior to a “Liquidity Event,” each outstanding share of Series A Preferred Stock shall convert into 299.2 shares of Common Stock, subject to anti-dilution adjustments (the “Conversion Rate”). Series C Preferred Stock will convert into shares of Common Stock at the same Conversion Rate on the one-year anniversary of a Liquidity Event, subject to the Company’s right to accelerate the conversion to a date no earlier than six months after the Liquidity Event, upon at least ten days prior notice to the holders of the Series C Preferred Stock. A “Liquidity Event” is performeddefined as (i) the listing of the Common Stock on a national securities exchange or quotation on an electronic inter-dealer quotation system; (ii) a merger or business combination involving the Company pursuant to which outstanding shares Common Stock are exchanged for securities of another company which are listed on a national securities exchange or quoted on an electronic inter-dealer quotation system; or (iii) any other transaction or series of transaction that results in all shares of Common Stock being transferred or exchange for cash or securities which are listed on a principalnational securities exchange or agent capacityquoted on an electronic inter-dealer quotation system. If there has not been a Liquidity Event within six years from the initial issuance of the Preferred Stock, each holder of Preferred Stock shall have the right to convert all, but not less than all, of the Preferred Stock held by such holder into Common Stock at the Conversion Rate. Each holder also has the option to convert its shares of Preferred Stock into Common Stock upon a change in control (as defined in the respective Articles Supplementary for the Series A Preferred Stock and Series C Preferred Stock) of the Company. In addition, neither the Company nor a holder of shares of Preferred Stock may redeem shares of the Preferred Stock until six years from the initial issuance of the Preferred Stock, except in cases of a change in control (as defined in the respective Articles Supplementary).
Holders of the Preferred Stock are entitled to vote on each matter submitted to a vote of the stockholders of the Company upon which the holders of Common Stock are entitled to vote, upon which the holders of the Preferred Stock and holders of the Common Stock shall vote together as a single class. The number of votes applicable to a share of Preferred Stock will be equal to the number of shares of Common Stock a share of Preferred Stock could have been converted into as of the record date set for purposes of such stockholder vote (rounded down to the nearest whole number of shares of Common Stock). In addition, the affirmative vote of the holders of two-thirds of the outstanding shares of Preferred Stock is required to approve the issuance of any equity securities senior to the Preferred Stock and to recognize revenue in a gross or net manner based on its principal/agent designation. This guidance is effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluatingtake certain actions materially adverse to the impactholders of this new guidance.the Preferred Stock.

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BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2017March 31, 2020
(Unaudited)

In June 2016, the FASB issued guidance that changes how entities measure credit losses for financial assets carried at amortized cost. The update eliminates the requirement that a credit loss must be probable before it can be recognized and instead requires an entity to recognize the current estimate of all expected credit losses. Additionally, the update requires credit losses on available-for-sale debt securities to be carried as an allowance rather than as a direct write-down of the asset. The amendments become effective for reporting periods beginning after December 15, 2019. The amendments may be adopted early for reporting periods beginning after December 15, 2018. The Company is currently evaluating the impact of this new guidance.
In August 2016, the FASB issued guidance on how certain transactions should be classified and presented in the statement of cash flows as either operating, investing or financing activities. Among other things, the update provides specific guidance on where to classify debt prepayment and extinguishment costs, payments for contingent consideration made after a business combination and distributions received from equity method investments. The revised guidance is effective for reporting periods beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance.
In October 2016, the FASB issued guidance where a reporting entity will need to evaluate if it should consolidate a VIE. The amendments change the evaluation of whether a reporting entity is the primary beneficiary of a VIE by changing how a single decision maker of a VIE treats indirect interests in the entity held through related parties that are under common control with the reporting entity. The revised guidance is effective for reporting periods beginning after December 15, 2016. The Company adopted this guidance on January 1, 2017. The application of this guidance does not have a material impact on the Company’s consolidated financial statements.
In November 2016, the FASB issued guidance on the classification of restricted cash in the statement of cash flows. The amendment requires restricted cash to be included in the beginning-of-period and end-of-period total cash amounts. Therefore, transfers between cash and restricted cash will no longer be shown on the statement of cash flows. The guidance is effective for reporting periods beginning after December 15, 2017. Early adoption is permitted. We do not expect this guidance to have a material impact on the Company’s consolidated financial statements.
Note 3 - Commercial Mortgage Loans
The following table is a summary of the Company's commercial mortgage loans, held-for-investment,held for investment, carrying values by class (in(dollars in thousands):
 March 31, 2020 December 31, 2019
Senior loans$2,653,564
 $2,721,325
Mezzanine loans9,117
 41,638
Total gross carrying value of loans2,662,681
 2,762,963
Less: Allowance for credit losses (1)
21,702
 921
Total commercial mortgage loans, held for investment, net$2,640,979
 $2,762,042
___________________
 September 30, 2017 December 31, 2016
Senior loans$1,254,879
 $901,907
Mezzanine loans32,186
 136,830
Subordinated loans—
 10,000
Total gross carrying value of loans1,287,065
 1,048,737
Less: Allowance for loan losses1,959
 2,181
Total commercial mortgage loans, held for investment, net$1,285,106
 $1,046,556
The following table presents the activity(1)As of March 31, 2020 and December 31, 2019, there have been no specific reserves for loans in the Company's allowance for loan losses (in thousands):
 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016
Beginning of period$2,181
 $888
Provision for loan losses(222) 721
Charge-offs—
 —
Recoveries—
 —
Ending allowance for loan losses$1,959
 $1,609
non-performing status.
As of September 30, 2017March 31, 2020 and December 31, 2016,2019, the Company's total commercial mortgage loan portfolio, excluding commercial mortgage loans accounted for under the fair value option, was comprised of 73118 and 71122 loans, respectively.
Allowance for Credit Losses
The following table presents the activity in the Company's allowance for credit losses, excluding the unfunded loan commitments, for the three months ended March 31, 2020 (dollars in thousands):
  March 31, 2020
  Multifamily Retail Office Industrial Mixed Use Hospitality Self Storage Mobile Housing Total
Beginning Balance $322
 $202
 $249
 $23
 $4
 $103
 $—
 $18
 $921
Cumulative-effect adjustment upon adoption of ASU 2016-13 3,220
 386
 1,966
 434
 9
 739
 399
 58
 7,211
Current Period:                  
Increase/(decrease) for credit losses 8,647
 565
 2,358
 1,875
 28
 655
 (123) (8) 13,997
Write-offs —
 —
 —
 —
 —
 (427) —
 —
 (427)
Ending Balance $12,189
 $1,153

$4,573
 $2,332
 $41
 $1,070
 $276
 $68
 $21,702
The increase in the provision for credit losses during the three months ended March 31, 2020 of $13,997 is primarily driven by the significant adverse change in the overall economic outlook due to the COVID-19 pandemic. These are allowance for credit losses on commercial mortgage loans, held-for-investment, as of March 31, 2020 and December 31, 2019.

-1117
Table of Contents
BENEFIT STREET PARTNERS REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2020
(Unaudited)

The following table presents the activity in the Company's allowance for credit losses, for the unfunded loan commitments, for the three months ended March 31, 2020 (dollars in thousands):
  March 31, 2020
  Multifamily Retail Office Industrial Mixed Use Hospitality Self Storage Mobile Housing Total
Beginning Balance $—
 $—
 $—
 $—
 $—
 $—
 $—
 $—
 $—
Cumulative-effect adjustment upon adoption of ASU 2016-13 239
 40
 150
 30
 1
 57
 28
 5
 550
Current Period:                  
Increase/(decrease) for credit losses

 56
 (40) 242
 257
 (1) 117
 (28) (3) 600
Write-offs —
 —
 —
 —
 —
 —
 —
 —
 —
Ending Balance $295
 $—
 $392
 $287
 $—
 $174
 $—
 $2
 $1,150
The following table represents the composition by loan type of the Company's commercial mortgage loans portfolio, excluding commercial mortgage loans, held-for-sale, measured at fair value (dollars in thousands):
  March 31, 2020 December 31, 2019
Loan Type Par Value Percentage Par Value Percentage
Multifamily $1,395,956
 52.3% $1,491,971
 53.9%
Office 430,870
 16.1% 414,772
 15.0%
Hospitality 398,186
 14.9% 446,562
 16.1%
Industrial 144,093
 5.4% 118,743
 4.3%
Retail 111,620
 4.2% 111,620
 4.0%
Mixed Use 65,040
 2.4% 58,808
 2.1%
Self Storage 63,057
 2.4% 67,767
 2.4%
Land 16,400
 0.6% 16,400
 0.6%
Manufactured Housing 44,911
 1.7% 44,656
 1.6%
Total $2,670,133
 100.0% $2,771,299
 100.0%
As of March 31, 2020 and December 31, 2019, the Company's total commercial mortgage loans, held-for-sale, measured at fair value comprised of 8 and 7 loans, respectively. As of March 31, 2020 and December 31, 2019, the contractual principal outstanding of commercial mortgage loans, held-for-sale, measured at fair value was $93.7 million and $112.5 million, respectively. As of March 31, 2020 and December 31, 2019, none of the Company's commercial mortgage loans, held-for-sale, measured at fair value were in default or greater than ninety days past due.
The following table represents the composition by loan type of the Company's commercial mortgage loans, held-for-sale, measured at fair value (dollars in thousands):
  March 31, 2020 December 31, 2019
Loan Type Par Value Percentage Par Value Percentage
Multifamily $41,000
 43.8% $78,250
 69.6%
Industrial 23,625
 25.2% 23,625
 21.0%
Retail 21,193
 22.6% 2,613
 2.3%
Office 6,000
 6.4% —
 —%
Manufactured Housing 1,850
 2.0% —
 —%
Hospitality —
 —% 8,000
 7.1%
Total $93,668
 100.0% $112,488
 100.0%
Loan Credit Quality and Vintage

18
BENEFIT STREET PARTNERS REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2017March 31, 2020
(Unaudited)

The following tables present the amortized cost of our commercial mortgage loans, held for investment at March 31, 2020, by loan type, the Company’s internal risk rating and year of origination. The risk ratings are updated as of March 31, 2020.
As of March 31, 2020  
  2020 2019 2018 2017 2016 2015 Prior Total
                 
Multifamily:                
Risk Rating:                
1-2 internal grade $177,191
 $456,036
 $617,533
 $34,875
 $—
 $—
 $3,489
 $1,289,124
3-4 internal grade —
 —
 65,805
 37,812
 —
 —
 —
 103,617
Total Multifamily Loans $177,191
 $456,036
 $683,338
 $72,687
 $—
 $—
 $3,489
 $1,392,741
                 
Retail:                
Risk Rating:                
1-2 internal grade $—
 $54,618
 $16,319
 $—
 $—
 $—
 $9,450
 $80,387
3-4 internal grade —
 3,501
 43,907
 —
 —
 —
 —
 47,408
Total Retail Loans $—
 $58,119
 $60,226
 $—
 $—
 $—
 $9,450
 $127,795
                 
Office:                
Risk Rating:                
1-2 internal grade $49,163
 $173,988
 $97,936
 $41,645
 $—
 $10,700
 $—
 $373,432
3-4 internal grade —
 —
 45,259
 10,506
 —
 —
 —
 55,765
Total Office Loans $49,163
 $173,988
 $143,195
 $52,151
 $—
 $10,700
 $—
 $429,197
                 
Industrial:                
Risk Rating:                
1-2 internal grade $25,241
 $84,576
 $—
 $—
 $—
 $33,655
 $—
 $143,472
3-4 internal grade —
 —
 —
 —
 —
 —
 —
 —
Total Industrial Loans $25,241
 $84,576
 $—
 $—
 $—
 $33,655
 $—
 $143,472
                 
Mixed Use:                
Risk Rating:                
1-2 internal grade $—
 $—
 $52,097
 $12,953
 $—
 $—
 $—
 $65,050
3-4 internal grade —
 —
 —
 —
 —
 —
 —
 —
Total Mixed Use Loans $—
 $—
 $52,097
 $12,953
 $—
 $—
 $—
 $65,050
                 
Hospitality:                
Risk Rating:                
1-2 internal grade $—
 $8,735
 $20,962
 $—
 $—
 $—
 $—
 $29,697
3-4 internal grade —
 161,948
 114,190
 90,940
 —
 —
 —
 367,078
Total Hospitality Loans $—
 $170,683
 $135,152
 $90,940
 $—
 $—
 $—
 $396,775
                 
Self Storage:                
Risk Rating:                
1-2 internal grade $—
 $—
 $62,937
 $—
 $—
 $—
 $—
 $62,937
3-4 internal grade —
 —
 —
 —
 —
 —
 —
 —
Total Self Storage Loans $—
 $—
 $62,937
 $—
 $—
 $—
 $—
 $62,937
                 

19
BENEFIT STREET PARTNERS REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2020
(Unaudited)

 September 30, 2017December 31, 2016
Loan Type Par Value Percentage Par Value Percentage
Office $433,110
 32.7% $340,944
 31.6%
Multifamily 441,431
 33.4% 329,203
 30.6%
Hospitality 126,673
 9.6% 143,582
 13.3%
Retail 223,315
 16.9% 154,684
 14.4%
Mixed Use 45,235
 3.4% 56,136
 5.2%
Industrial 53,208
 4.0% 52,688
 4.9%
Total (1)
 $1,322,972
 100.0% $1,077,237
 100.0%
         
(1) Excludes $60.95 million in commercial mortgage loans held-for-sale, measured at fair value in the Company's TRS segment

Manufactured Housing:                
Risk Rating:                
1-2 internal grade $—
 $44,714
 $—
 $—
 $—
 $—
 $—
 $44,714
3-4 internal grade —
 —
 —
 —
 —
 —
 —
 —
Total Manufactured Housing Loans $—
 $44,714
 $—
 $—
 $—
 $—
 $—

$44,714
                 
Total $251,595
 $988,116
 $1,136,945
 $228,731
 $—
 $44,355
 $12,939
 $2,662,681
Past Due Status
The following table presents an aging summary of the loans amortized cost basis at March 31, 2020 (dollars in thousands):
  Multifamily Retail Office Industrial Mixed Use Hospitality Self Storage Mobile Housing Total
Status:                  
Current $1,392,741
 $127,795
 $383,938
 $143,472
 $65,050
 $339,700
 $62,937
 $44,714
 $2,560,347
1-29 days past due(1)
 —
 —
 45,259
 —
 —
 —
 —
 —
 45,259
30-59 days past due —
 —
 —
 —
 —
 —
 —
 —
 —
60-89 days past due —
 —
 —
 —
 —
 —
 —
 —
 —
90-119 days past due —
 —
 —
 —
 —
 —
 —
 —
 —
120+ days past due(2)
 —
 —
 —
 —
 —
 57,075
 —
 —
 57,075
Total $1,392,741
 $127,795
 $429,197
 $143,472
 $65,050
 $396,775

$62,937
 $44,714
 $2,662,681
__________________
(1) For the three months ended March 31, 2020, interest income recognized on this loan was $0.6 million.
(2) For the three months ended March 31, 2020, interest income recognized on this loan was $0.0 million.
As of September 30, 2017March 31, 2020, the Company had two loans on non-accrual status with a cost basis of $57.1 million and $45.3 million. As of December 31, 2016,2019, the Company's total commercial mortgage loans, held for sale, measured at fair value comprisedCompany had one loan on non-accrual status with a cost basis of 4 and 0 loans, respectively.
 September 30, 2017December 31, 2016
Loan Type Par Value Percentage Par Value Percentage
Industrial $11,600
 19.1% $—
 —%
Mixed Use 14,150
 23.2% —
 —%
Multifamily 7,200
 11.8% —
 —%
Retail 28,000
 45.9% —
 —%
Total $60,950
 100.0% $—
 —%
         
   

$57.1 million.
Credit Characteristics
As part of the Company's process for monitoring the credit quality of its commercial mortgage loans, excluding those held-for-sale, measured at fair value, it performs a quarterly loan portfolio assessment and assigns risk ratings to each of its loans. The loans are ratedscored on a 5-point scale of 1 to 5 as follows:
Investment Rating Summary Description
1 Investment exceeding fundamental performance expectations and/or capital gain expected. Trends and risk factors since time of investment are favorable.
2 Performing consistent with expectations and a full return of principal and interest expected. Trends and risk factors are neutral to favorable.
3 Performing investments requiring closer monitoring. Trends and risk factors show some deterioration.
4 Underperforming investment with the potential of some interest loss but still expecting a positive return on investment. Trends and risk factors are negative.
5 Underperforming investment with expected loss of interest and some principal.

20
BENEFIT STREET PARTNERS REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2020
(Unaudited)

All commercial mortgage loans, excluding loans classified as commercial mortgage loans, held-for-sale, measured at fair value within the consolidated balance sheets, are assigned an initial risk rating of 2.0. As of September 30, 2017March 31, 2020 and December 31, 2016,2019, the weighted average risk rating of the loans was 2.22.3 and 2.1, respectively. As of
The following table represents the allocation by risk rating for the Company's commercial mortgage loans, held for investment (dollars in thousands):
March 31, 2020  December 31, 2019
Risk Rating  Number of Loans  Par Value Risk Rating  Number of Loans  Par Value
1  —
  $—
 1  —
  $—
2  90
  2,094,654
 2  113
  2,452,330
3  27
  518,404
 3  8
  298,994
4  1
  57,075
 4  1
  19,975
5  —
  —
 5  —
  —
   118
  $2,670,133
   122
  $2,771,299
September 30, 2017For the three months ended March 31, 2020 and year ended December 31, 2016, the Company did not have any loans that were past due on their payments, in non-accrual status or impaired.
For the nine months ended September 30, 2017 and September 30, 2016,2019, the activity in the Company's commercial mortgage loans, held-for-investmentheld for investment portfolio was as follows (in(dollars in thousands):

-12
Table of Contents
BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2017
(Unaudited)

 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016
Balance at Beginning of Year$1,046,556
 $1,124,201
Acquisitions and originations566,490
 42,236
Dispositions(68,514) —
Principal repayments(228,814) (48,127)
Discount accretion and premium amortization*1,604
 1,704
Loans transferred to commercial real estate loans, held-for-sale, at fair value(31,207) —
Fees capitalized into carrying value of loans(1,231) —
Provision for loan losses222
 (721)
Balance at End of Period$1,285,106
 $1,119,293
 Three Months Ended March 31, For the Year Ended December 31,
 2020 2019
Balance at Beginning of Year$2,762,042
 $2,206,830
Cumulative-effect adjustment upon adoption of ASU 2016-13(7,211) —
Acquisitions and originations288,825
 1,326,983
Principal repayments(366,058) (771,774)
Discount accretion/premium amortization1,751
 6,264
Loans reclassified to held-for-sale(9,619) —
Loans transferred from/(to) commercial real estate loans, held-for-sale—
 10,100
Net fees capitalized into carrying value of loans(1,181) (5,339)
Increase/(decrease) for credit losses(13,997) (3,007)
Charge-off from allowance427
 6,922
Transfer on foreclosure to real estate owned(14,000) —
Transfer on deed in lieu of foreclosure to real estate owned—
 (14,937)
Balance at End of Period$2,640,979
 $2,762,042
________________________
* Includes amortizationAs of capitalizedMarch 31, 2020, the Company wrote off a commercial mortgage loan, held for investment, with a carrying value $14.4 million in exchange for the possession of a REO investment at a fair value of $14.0 million at the time of the transfer. The $14.0 million REO investment is comprised of $11.6 million of real property (land, building and improvements) and $2.4 million of personal property (furniture, fixture, and equipment). The transfer occurred when the Company took possession of the property by completing a foreclosure transaction which resulted in $0.4 million impairment loss at the time of transfer. The Company accounted for the REO acquired during the three months ended March 31, 2020 as an asset acquisition. The results of operations of the REO have been included in the Company’s consolidated statements of operations and comprehensive income since the acquisition fees and expenses.

date.
Note 4 - Real Estate Securities
The following is a summary of the Company's real estate securities, CMBS (in(dollars in thousands):
    Weighted Average    
  Number of Investments Interest Rate Maturity Par Value Fair Value
September 30, 2017 —
 —% n/a $—
 $—
December 31, 2016 6
 5.8% February 2020 50,000
 49,049
March 31, 2020
Type Interest Rate Maturity Par Value Fair Value
CMBS 1 3.7% 5/15/2022 $13,250 $10,408

21
BENEFIT STREET PARTNERS REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2020
(Unaudited)

CMBS 2 2.8% 6/26/2025 11,488 10,250
CMBS 3 3.1% 2/15/2036 40,000 34,728
CMBS 4 2.4% 5/15/2036 18,500 14,672
CMBS 5 2.1% 5/15/2036 15,000 14,259
CMBS 6 2.2% 5/15/2037 13,500 11,279
CMBS 7 2.4% 5/15/2037 15,000 12,538
CMBS 8 2.2% 6/15/2037 7,000 6,386
CMBS 9 2.6% 2/15/2036 9,600 8,695
CMBS 10 2.5% 8/15/2036 10,000 9,083
CMBS 11 2.6% 6/15/2037 8,000 7,330
CMBS 12 2.3% 7/15/2038 13,000 10,802
CMBS 13 2.3% 9/15/2037 32,000 27,563
CMBS 14 2.7% 9/15/2037 24,000 20,628
CMBS 15 2.3% 10/19/2038 50,000 42,408
CMBS 16 2.7% 10/19/2038 26,000 22,210
CMBS 17 2.2% 6/15/2034 15,000 13,332
CMBS 18 2.5% 6/15/2034 6,500 5,606
CMBS 19 2.9% 6/15/2034 12,000 10,417
CMBS 20 2.0% 12/15/2036 20,000 17,920
CMBS 21 2.3% 12/15/2036 25,000 22,221
CMBS 22 2.1% 2/15/2035 22,500 18,255
CMBS 23 2.5% 2/15/2035 16,000 13,166
CMBS 24 2.5% 2/15/2035 2,000 1,646
CMBS 25 2.1% 2/15/2035 2,200 1,785
CMBS 26 2.6% 3/15/2035 12,500 11,153
CMBS 27 3.0% 3/15/2035 25,665 23,056
CMBS 28 2.3% 3/15/2037 28,000 25,601
CMBS 29 2.6% 3/15/2037 15,000 13,763
December 31, 2019
Type Interest Rate Maturity Par Value Fair Value
CMBS 1 4.7% 5/15/2022 $13,250 $13,274
CMBS 2 3.8% 6/26/2025 12,131 12,151
CMBS 3 4.1% 2/15/2036 40,000 40,186
CMBS 4 3.7% 5/15/2036 18,500 18,535
CMBS 5 3.1% 5/15/2036 15,000 15,019
CMBS 6 3.2% 5/15/2037 13,500 13,525
CMBS 7 3.4% 5/15/2037 15,000 15,028
CMBS 8 3.2% 6/15/2037 7,000 7,013
CMBS 9 3.6% 2/15/2036 9,600 9,641
CMBS 10 3.5% 8/15/2036 10,000 10,027
CMBS 11 3.6% 6/15/2037 8,000 8,015
CMBS 12 3.3% 7/15/2038 13,000 13,022
CMBS 13 3.3% 9/15/2037 32,000 32,074
CMBS 14 3.7% 9/15/2037 24,000 24,084

22
BENEFIT STREET PARTNERS REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2020
(Unaudited)

CMBS 15 3.3% 10/19/2038 50,000 50,094
CMBS 16 3.7% 10/19/2038 26,000 26,029
CMBS 17 3.2% 6/15/2034 15,000 15,022
CMBS 18 3.5% 6/15/2034 6,500 6,509
CMBS 19 3.9% 6/15/2034 12,000 12,022
CMBS 20 3.1% 12/15/2036 20,000 20,021
CMBS 21 3.4% 12/15/2036 25,000 25,025
The Company classified its CMBS investments as available-for-saleavailable for sale as of September 30, 2017March 31, 2020 and December 31, 2016.2019. These investments are reported at fair value in the consolidated balance sheets with changes in fair value recorded in "accumulatedaccumulated other comprehensive income or loss"(loss). The weighted average contractual maturity for CLO investments included within the CMBS portfolio as of March 31, 2020 and December 31, 2019 was 16 and 17 years. The weighted average contractual maturity for single asset single borrower "SASB" investments as of March 31, 2020 and December 31, 2019 was 14 and 5 years.
The following table shows the amortized cost, allowance for expected credit losses, unrealized gains/lossesgain/(loss) and fair value of the Company's CMBS investments as of September 30, 2017 and December 31, 2016 (inby investment type (dollars in thousands):
  Amortized Cost Unrealized Gains Unrealized Losses Fair Value
September 30, 2017 $—
 $—
 $—
 $—
December 31, 2016 49,548
 —
 (499) 49,049
  Amortized Cost Credit Loss Allowance Unrealized Gain Unrealized Loss Fair Value
March 31, 2020          
CLOs $411,234
 $—
 $—
 $(59,830) $351,404
SASB 98,511
 —
 —
 (8,755) 89,756
Total $509,745
 $—
 $—
 $(68,585) $441,160
December 31, 2019          
CLOs 330,000
 $—
 1
 (881) 329,120
SASB 57,294
 —
 —
 (98) 57,196
Total $387,294
 $—
 $1
 $(979) $386,316
As of September 30, 2017,March 31, 2020 the Company held no CMBS positions. As of December 31, 2016, the Company held 629 CMBS positions with an aggregate carrying value of $49.5$510 million and an unrealized loss of $0.5$69 million, of which 2two positions had a totalan unrealized loss of $0.2 million for a period greater than 12twelve months. As of December 31, 2019, the Company held 21 CMBS positions with an aggregate carrying value of $387 million and an unrealized loss of $1 million, of which two positions had an unrealized loss for a period greater than twelve months.
The Companyfollowing table provides information on the unrealized losses and fair value on the Company's real estate securities, CMBS, available for sale that were in an unrealized loss position, and for which an allowance for credit losses has recognizednot been recorded as of March 31, 2020 and December 31, 2019 (amounts in thousands):
 Fair Value Unrealized Loss
 Securities with an unrealized loss less than 12 months Securities with an unrealized loss greater than 12 months Securities with an unrealized loss less than 12 months Securities with an unrealized loss greater than 12 months
March 31, 2020       
CLOs$341,003
 $10,401
 $(56,944) $(2,886)
SASB79,506
 10,250
 (7,468) (1,287)
Total$420,509
 $20,651
 $(64,412) $(4,173)
December 31, 2019       
CLOs$315,845
 $13,275
 $(863) $(17)
SASB45,045
 12,151
 (67) (31)
Total$360,890
 $25,426
 $(930) $(48)

23
BENEFIT STREET PARTNERS REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2020
(Unaudited)

As of March 31, 2020 and December 31, 2019, there are two securities with unrealized losses reflected in the table above. After evaluating the securities, we concluded that the unrealized losses reflected above were noncredit-related and would be recovered from the securities’ estimated future cash flows. We considered a gainnumber of $0.2 millionfactors in reaching this conclusion, including that we did not intend to sell the securities, it was not considered more likely than not that we would be forced to sell the securities prior to recovering our amortized cost, and that there were no material credit events that would have caused us to otherwise conclude that we would not recover our cost. The allowance for credit losses is calculated using a discounted cash flow approach and is measured as the nine months ended September 30, 2017 and recognizeddifference between the original cash flows expected to be collected to the revised cash flows expected to be collected discounted using the effective interest rate, limited by the amount that the fair value is less than the amortized cost basis. Significant judgment is used in projecting cash flows. As a result, actual income and/or credit losses could be materially different from what is currently projected and/or reported.
The following table provides information on the amounts of gain/(loss) on the Company's real estate securities, CMBS, available for sale (dollars in thousands):
  Three Months Ended March 31,
  2020 2019
Unrealized gain/(loss) available-for-sale securities $(67,607) $145
Reclassification of net (gain)/loss on available-for-sale securities included in net income (loss) from sales of securities —
 —
Unrealized gain/(loss) available-for-sale securities, net of reclassification adjustment $(67,607) $145
The amounts reclassified for net (gain)/loss on available for sale securities from sales of approximately $1 million for the three and nine months ended September 30, 2016, recorded withinsecurities are included in the realized (gain)/loss on sale of real estate securities in the Company's consolidated statements of operations. The Company did not have any realized gains or losses duringCompany's unrealized gain/(loss) on available for sale securities is net of tax. Due to the three months ended September 30, 2017.Company's designation as a REIT, there was no tax impact on unrealized gain/(loss) on available for sale securities.

The following table provides information on the amountsdeterioration in fair value of gains (losses) on the Company's real estate securities CMBS, available-for-sale:for both collateralized loan obligations and other securities as of March 31, 2020 can be attributed mainly to the market down-turn and volatility as a result of high unemployment and credit uncertainties related to the outbreak of COVID-19. Management currently does not have the intention to sell any of the real estate securities as of March 31, 2020.

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Table of Contents
BENEFIT STREET PARTNERS REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2020
(Unaudited)

Note 5 - Real Estate Owned
The following table summarizes the Company's real estate owned assets as of March 31, 2020 (dollars in thousands):
As of March 31, 2020        
Acquisition Date Property Type Primary Location(s) Land Building and Improvements Furniture, Fixtures and Equipment Accumulated Depreciation Real Estate Owned, net
August 2019 (1)(2)
 Hotel Chicago, IL $—
 $8,337
 $—
 $(139) $8,198
October 2019 (1)
 Office Jeffersonville, IN 1,887
 21,989
 3,565
 (333) 27,108
March 2020 (1)(3)
 Hotel Knoxville, TN 3,800
 7,838
 2,362
 —
 14,000
      $5,687
 $38,164
 $5,927
 $(472) $49,306
________________________
(1)Refer to Note 2 for the useful life of the above assets
(2)Represents assets acquired by the Company by completing a deed-in-lieu of foreclosure transaction
(3)Represents assets acquired by the Company by completing a foreclosure transaction
The following table summarizes the Company's real estate asset acquisitions for the year ended December 31, 2019 (dollars in thousands):
As of December 31, 2019        
Acquisition Date Property Type Primary Location(s) Land Building and Improvements Furniture, Fixtures and Equipment Accumulated Depreciation Real Estate Owned, net
August 2019 (1)(2)
 Hotel Chicago, IL $—
 $8,110
 $—
 $(86) $8,024
October 2019 (1)
 Office Jeffersonville, IN 1,887
 25,554
 —
 (133) 27,309
      $1,887
 $33,664
 $—
 $(219) $35,333
________________________
(1)Refer to Note 2 for the useful life of the above assets
(2)Represents assets acquired by the Company by completing a deed-in-lieu of foreclosure transaction
Depreciation expense for the three months ended March 31, 2020 and March 31, 2019 totaled $0.3 million and $0.0 million, respectively.


25
BENEFIT STREET PARTNERS REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2017March 31, 2020
(Unaudited)

Note 6 - Leases
Operating Right of Use Asset
The following table summarizes the Company's operating right of use asset recognized in the consolidated balance sheets as of March 31, 2020 (dollars in thousands):
         
  Three Months Ended September 30, Nine Months Ended September 30,
  2017 2016 2017 2016
Unrealized gains (losses) available-for-sale securities $(448) $1,449
 $19
 $(1,124)
Reclassification of net (gains) losses on available-for-sale securities included in net income (loss) —
 1,159
 481
 1,159
Unrealized gains (losses) available-for-sale securities, net of reclassification adjustment $(448) $2,608
 $500
 $35
         
The amounts reclassified for net (gain) loss on available-for-sale securities are included in the realized (gain) loss on sale of real estate securities in the Company's consolidated statements of operations.
 
March 31, 2020          
Acquisition Date Property Type Primary Location(s) Operating Right of Use Asset, Gross Accumulated Amortization Operating Right of Use Asset, net of Amortization
August 2019 Hotel Chicago, IL $6,109
 $(207) $5,902
      $6,109
 $(207) $5,902
The following table summarizes the Company's operating right of use asset recognized in the consolidated balance sheets as of December 31, 2019 (dollars in thousands):
December 31, 2019        
Acquisition Date Property Type Primary Location(s) Operating Right of Use Asset, Gross Accumulated Amortization Operating Right of Use Asset, net of Amortization
August 2019 Hotel Chicago, IL $6,109
 $(130) $5,979
      $6,109
 $(130) $5,979
Operating Lease Liabilities
On August 19, 2019, in conjunction with the deed-in-lieu of foreclosure transaction, the Company assumed a non-cancelable ground lease for the land on which the property is located and classified the lease as an operating lease. The ground lease requires monthly rental payments with annual increases of 3%. The initial term of the lease expires in 2067 and can be renewed for a sixty-year period. Rent expense for this operating lease for the three months ended March 31, 2020 and March 31, 2019 totaled $0.2 million and $0.0 million, respectively.
The following table summarizes the Company's schedule of minimum future lease payments as of March 31, 2020 (dollars in thousands):
Minimum Future Lease Payments March 31, 2020
2020 (April - December) $300
2021 410
2022 422
2023 435
2024 448
2025 and beyond 39,438
Total undiscounted lease payments $41,453
Less: Amount representing interest (35,277)
Present value of lease liability $6,176

26
BENEFIT STREET PARTNERS REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2020
(Unaudited)

The following table summarizes the Company's schedule of minimum future lease payments as of December 31, 2019 (dollars in thousands):
Minimum Future Lease Payments December 31, 2019
2020 $398
2021 410
2022 422
2023 435
2024 448
2025 and beyond 39,438
Total undiscounted lease payments $41,551
Less: Amount representing interest (35,415)
Present value of lease liability $6,136
The discount rate used to calculate the lease liability as of March 31, 2020 and December 31, 2019 is 9%. The remaining lease term is 47.70 years as of March 31, 2020 and 47.95 as of December 31, 2019.
Intangible Lease Asset
The following table summarizes the Company's intangible lease asset recognized in the consolidated balance sheets as of March 31, 2020 (dollars in thousands):
March 31, 2020          
Acquisition Date Property Type Primary Location(s) Intangible Lease Asset, Gross Accumulated Amortization Intangible Lease Asset, Net of Amortization
October 2019 Office Jeffersonville, IN $14,509
 $(344) $14,165
      $14,509
 $(344) $14,165
The following table summarizes the Company's intangible lease asset recognized in the consolidated balance sheets as of December 31, 2019 (dollars in thousands):
December 31, 2019          
Acquisition Date Property Type Primary Location(s) Intangible Lease Asset, Gross Accumulated Amortization Intangible Lease Asset, Net of Amortization
October 2019 Office Jeffersonville, IN $14,509
 $(131) $14,377
      $14,509
 $(131) $14,377
Rental Income
On October 15, 2019, the Company purchased an office building that was subject to an existing triple net lease. The minimum rental amount due under the lease is subject to annual increases of 1.5%. The initial term of the lease expires in 2037 and contains renewal options for four consecutive five-year terms. The remaining lease term is 17.1 years. Rental income for this operating lease for the three months ended March 31, 2020 and March 31, 2019 totaled $0.7 million and $0.0 million, respectively.

27
BENEFIT STREET PARTNERS REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2020
(Unaudited)

The following table summarizes the Company's schedule of future minimum rents to be received under the lease (dollars in thousands):
Minimum Rents March 31, 2020
2020 (April - December) $1,903
2021 2,568
2022 2,607
2023 2,646
2024 2,686
2025 and beyond 36,894
Total minimum rent $49,304
AmortizationExpense
Intangible lease assets are amortized using the straight-line method over the contractual life of the lease, of a period up to 20.0 years. The weighted average life of intangible assets as of March 31, 2020 is approximately 17.1 years. Amortization expense for the three months ended March 31, 2020 and March 31, 2019 totaled $0.2 million and $0.0 million, respectively.
The following table summarizes the Company's expected amortization for intangible assets over the next five years, assuming no further acquisitions or dispositions (dollars in thousands):
Amortization Expense March 31, 2020
2020 (April - December) $(619)
2021 (825)
2022 (825)
2023 (825)
2024 (825)
Note 57 - Debt
Repurchase Agreements - Commercial Mortgage Loans
The Company has entered into repurchase facilities with JPMorgan Chase Bank, National Association (the "JPM Repo Facility"), Goldman Sachs Bank USA (the "GS Repo Facility"), U.S.U.S Bank National Association (the "USB Repo Facility"), Barclays Bank PLC (the "Barclays Revolver Facility" and the "Barclays Repo Facility"), Wells Fargo Bank, National Association (the "WF Repo Facility"), and Credit Suisse AG (the "CS Repo Facility" and together with the JPM Repo Facility, GS Repo Facility, USB Repo Facility, WF Repo Facility, Barclays Revolver Facility, and Barclays Repo Facility, the "Repo Facilities").
The JPM Repo Facility has aFacilities are financing sources through which the Company may pledge one or more mortgage loans to the financing entity in exchange for funds typically at an advance rate of between 65% to 80% of the principal amount of the mortgage loan being pledged.
The details of the Company's Repo Facilities at March 31, 2020 and December 31, 2019 are as follows (dollars in thousands):
As of March 31, 2020
Repurchase Facility Committed Financing Amount Outstanding 
Interest Expense(1)
 Ending Weighted Average Interest Rate Maturity
JPM Repo Facility (2)
 $300,000
 $119,604
 $1,362
 3.83% 1/30/2021
USB Repo Facility (3)
 100,000
 8,250
 152
 3.18% 6/15/2020
CS Repo Facility (4)
 200,000
 71,740
 1,349
 4.06% 9/27/2020
WF Repo Facility (5)
 175,000
 —
 396
 N/A
 11/21/2020
Barclays Revolver Facility (6)
 100,000
 4,200
 51
 5.34% 9/20/2021
Barclays Repo Facility (7)
 300,000
 30,730
 332
 3.24% 3/15/2022
Total $1,175,000
 $234,524
 $3,642
    
__________________________

28
BENEFIT STREET PARTNERS REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2020
(Unaudited)

(1) For the three months ended March 31, 2020. Includes amortization of deferred financing costs.
(2) On September 3, 2019, the committed financing amount was downsized from $520 million to $300 million and the maturity date of June 12, 2019 plus a one-year extension at the Company's option and provides upwas amended to $300.0 million in advances. The GS Repo Facility has a maturity date of December 27, 2018, with a one-year extension at the Company’s option, which may be exercised upon the satisfaction of certain conditions, and provides up to $250.0 million in advances. The USB Repo Facility matures on July 15, 2020, withJanuary 30, 2021.
(3) Includes two one-year extensions at the option of an indirect wholly-owned subsidiary of the Company, which may be exercised upon the satisfaction of certain conditions, and provides up to $100.0 million in advances. The CS Repo Facility matures on August 30, 2018 and provides up to $250.0 million in advances. Prior to the end of each calendar quarter,conditions.
(4) On March 26, 2020, the Company may request anexercised the extension of the termination date for an additional 364 days from the end of such calendar quarter subject tooption upon the satisfaction of certain conditions, and approvals. extended the term maturity to September 27, 2020.
(5) Includes three one-year extensions at the Company’s option, which may be exercised upon the satisfaction of certain conditions.
(6) On September 13, 2019, the Company exercised the extension option, and extended the term maturity to September 20, 2021. There is one more one-year extension option available at the Company's discretion.
(7) Includes two one-year extensions at the Company's option.
As of December 31, 2019
Repurchase Facility Committed Financing Amount Outstanding 
Interest Expense(1)
 Ending Weighted Average Interest Rate 
Maturity

JPM Repo Facility (2)
 $300,000
 $107,526
 $6,862
 4.51% 1/30/2021
USB Repo Facility (3)
 100,000
 —
 622
 N/A
 6/15/2020
CS Repo Facility (4)
 300,000
 87,375
 5,563
 4.84% 3/27/2020
WF Repo Facility (5)
 175,000
 24,942
 1,333
 3.65% 11/21/2020
Barclays Revolver Facility (6)
 100,000
 —
 976
 N/A
 9/20/2021
Barclays Repo Facility (7)
 300,000
 32,700
 1,260
 3.80% 3/15/2022
Total $1,275,000
 $252,543
 $16,616
    
_______________________
(1) For the twelve months ended December 31, 2019. Includes amortization of deferred financing costs.
(2) On September 3, 2019, the committed financing amount was downsized from $520 million to $300 million and the maturity date was amended to January 30, 2021.
(3) Includes two one-year extensions at the option of an indirect wholly-owned subsidiary of the Company, which may be exercised upon the satisfaction of certain conditions.
(4) On March 26, 2019, the Company exercised the extension option upon the satisfaction of certain conditions, and extended the term maturity to March 27, 2020.
(5) Includes three one-year extensions at the Company’s option, which may be exercised upon the satisfaction of certain conditions.
(6) On September 13, 2019, the Company exercised the extension option, and extended the term maturity to September 20, 2021. There is one more one-year extension option available at the Company's discretion.
(7) Includes two one-year extensions at the Company's option.

The Company expects to use the advances from the Repo Facilities are all subject to various adjustments.
Advances under the JPM Repo Facility currently accrue interest at per annum rates generally equal to the sum of (i) the applicable LIBOR index rate plus (ii) a margin of 2.40%. Borrowings under the GS Repo Facility accrue interest at per annum rates generally equal to the sum of (i) a spread over LIBOR of between 2.35% to 2.85%, depending on the attributes of the purchased asset, and (ii) 0.50%. Borrowings under the USB Repo Facility accrue interest at per annum rates generally equal to the sum of (i) the applicable LIBOR index rate plus (ii) a margin between 2.25% to 3.00%, depending on the attributes of the purchased assets. Borrowings under the CS Repo Facility accrue interest at per annum rates generally equal to the sum of (i) the applicable LIBOR index rate plus (ii) a margin of 2.50% depending on the attributes of the purchased assets.
We expect to use advances from these repo facilities to finance the acquisition or origination of eligible loans, including first mortgage loans, subordinated mortgage loans, mezzanine loans and participation interests therein.
As of September 30, 2017 and December 31, 2016, the Company had $137.5 million and $257.7 million outstanding under the JPM Repo Facility with weighted average interest rates on advances of 3.36% and 3.08%, respectively. The Company incurred $7.1 million and $3.4 million in interest expense on the JPM Repo Facility for the nine months ended September 30, 2017 and 2016, respectively, including amortization of deferred financing cost.
As of September 30, 2017, the Company had $138 million outstanding under the GS Repo Facility with a weighted average interest rate on advances of 3.58%. The Company incurred $3.2 million of interest expense on the GS Repo Facility for the nine months ended September 30, 2017, including amortization of deferred financing cost. The Company had no advances under the GS Repo Facility as of December 31, 2016. The Company did not incur any interest expense on the GS Repo Facility during the nine months ended September 30, 2016.

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BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2017
(Unaudited)

As of September 30, 2017, the Company had $12.3 million outstanding under the USB Repo Facility with a weighted average interest rate on advances of 4.16%. The Company incurred $0.2 million of interest expense on the USB Repo Facility for the nine months ended September 30, 2017, including amortization of deferred financing cost.
As of September 30, 2017, the Company had $31.6 million outstanding under the CS Repo Facility with a weighted average interest rate on advances of 3.73%. The Company incurred $57.6 thousand of interest expense on the CS Repo Facility for the nine months ended September 30, 2017, including amortization of deferred financing cost. The Company had no advances under the CS Repo Facility as of December 31, 2016. The Company did not incur any interest expense on the CS Repo Facility during the nine months ended September 30, 2016
The Repo Facilities generally provide that in the event of a decrease in the value of the Company's collateral, the lenders can demand additional collateral. Should the value of the Company’s collateral decrease as a result of deteriorating credit quality, resulting margin calls may cause an adverse change in the Company’s liquidity position. As of September 30, 2017March 31, 2020 and December 31, 2016,2019, the Company is in compliance with all debt covenants.
The Company entered into the Barclays Facility on September 19, 2017  The Barclays Facility provides for a senior secured $75 million revolving line of creditOther financing and bears interest at per annum rates equal to one of two base rates plus an applicable margin. The Barclays Facility has a maturity of September 19, 2019, subject to an extension term of one year, and provides for quarterly interest-only payments, with all principal and interest outstanding being due on the maturity date. The Barclays Facility may be prepaid from time to time and at any time, in whole or in part, without premium or penalty. The Company expects to use advances on the Barclays Facility to finance the origination of eligible loans, including first lien mortgage loans, junior mortgage loans, mezzanine loans, andloan participation interests therein.  As of September 30, 2017, the Company had no advances under the Barclays Facility.
Other financing - Commercial Mortgage Loans
On March 23, 2020, the Company transferred $15.2 million of its interest in a term loan to Sterling National Bank ("SNB") via a participation agreement. The Company incurred $13.0 thousand of interest expense on SNB for the three months ended March 31, 2020.
Unsecured Debt
On March 26, 2020, the Company and certain of its subsidiaries entered into a financing arrangementmaterial amendment to an existing lending agreement with Pacific Western BankSecurity Benefit Life Insurance Company ("SBL"), secured by a pledge of equity interests in certain of the Company’s subsidiaries, for term financing (“PWB Financing”) on May 17, 2017.a total commitment of $100 million with a maturity of February 10, 2023 and a rate of one-month LIBOR + 4.5%. The PWB Financing providedamendment revised the terms of the existing SBL lending agreement, entered into in February 2020, to permit the Company with $36.2 million and is collateralized by a portfolio asset of $54.2 million. The PWB Financing currently accrues interest at per annum rates equal to the sum of (i) the applicable LIBOR index rate plus (ii) a margin of 4.00%. The PWB Financing initially matures on June 9, 2019, with two one-year extension options at the Company’s option. As of September 30, 2017, the Company had $30.5 million outstandingborrow under the PWB Financing.agreement. The Company incurred $0.7 million$17.0 thousand of interest expense on the PWB Financinglending agreement with SBL for the ninethree months ended September 30, 2017, including amortizationMarch 31, 2020. As of deferred financing cost.March 31, 2020 there was no outstanding balance.

29
BENEFIT STREET PARTNERS REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2020
(Unaudited)

Repurchase Agreements - Real Estate Securities
The Company has entered into various Master Repurchase Agreements (the "MRAs") that allow the Company to sell real estate securities while providing a fixed repurchase price for the same real estate securities in the future. The repurchase contracts on each security under an MRA generally mature in 30 to 9030-90 days and terms are adjusted for current market rates as necessary. As of September 30, 2017, the Company pledged Tranche C of RFT 2015-FL1 under its MRAs. As of December 31, 2016, the Company pledged Tranche C of RFT 2015-FL1 and its real estate securities available for sale under its MRAs.
Below is a summary of the Company's MRAs as of September 30, 2017March 31, 2020 and December 31, 2016 (in2019 (dollars in thousands):
        Weighted Average
Counterparty Amount Outstanding Accrued Interest 
Collateral Pledged (1)
 Interest Rate Days to Maturity
As of March 31, 2020          
JP Morgan Securities LLC $159,879
 $595
 $202,688
 2.21% 11
Wells Fargo Securities, LLC 159,924
 955
 190,623
 2.32% 12
Barclays Capital Inc. 79,047
 365
 106,965
 2.28% 17
Citigroup Global Markets, Inc. 98,030
 653
 109,500
 2.60% 16
Total/Weighted Average $496,880
 $2,568
 $609,776
 2.33% 13
           
As of December 31, 2019          
JP Morgan Securities LLC $83,353
 $124
 $93,500
 2.53% 20
Wells Fargo Securities, LLC $178,304
 $1,199
 $209,873
 2.94% 11
Barclays Capital Inc. $40,720
 $221
 $47,475
 2.81% 23
Citigroup Global Markets, Inc. 91,982
 413
 103,453
 2.69% 19
Total/Weighted Average $394,359
 $1,957
 $454,301
 2.79% 16
________________________
        Weighted Average
Counterparty Amount Outstanding Accrued Interest Fair Value Collateral Pledged (*) Interest Rate Days to Maturity
As of September 30, 2017          
J.P. Morgan Securities LLC
 $39,035
 $74
 $55,764
 2.97% 6
Total/Weighted Average $39,035
 $74
 $55,764
 2.97% 6
           
As of December 31, 2016          
J.P. Morgan Securities LLC
 $59,122
 $96
 $92,658
 2.55% 6
Citigroup Global Markets, Inc. 3,879
 1
 4,850
 2.11% 26
Wells Fargo Securities, LLC
 3,638
 4
 4,850
 2.05% 13
Total/Weighted Average $66,639
 $101
 $102,358
 2.50% 8

-15
Table1 Includes $89.1 million and $68.5 million of Contents
BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2017
(Unaudited)

* Includes $55.8 and $53.3 Tranche C of Company issued CLO notes, held by the Company, which eliminatesare eliminated within the real estate securities, at fair value line ofin the consolidated balance sheets as of September 30, 2017March 31, 2020 and December 31, 2016,2019, respectively.
Collateralized Loan ObligationObligations
On October 19, 2015, RFT 2015-FL1January 15, 2020, the Company called all of the outstanding notes issued by BSPRT 2017-FL2 Issuer, Ltd. (the “2015 Issuer”), a wholly owned indirect subsidiary of the Company. The outstanding principal of the notes on the date of the call was $21.0 million. The Company recognized all the remaining unamortized deferred financing costs of $4.5 million recorded within the Interest expense line of the consolidated statements of operations, which was a non-cash charge.
As of March 31, 2020 and RFT 2015-FL1December 31, 2019 the notes issued by BSPRT 2018-FL3 Issuer, Ltd. and BSPRT 2018-FL3 Co-Issuer, LLC, (the “2015 Co-Issuer”), both wholly owned indirect subsidiaries of the Company, entered into an indenture with the OP, as advancing agent, U.S. Bank National Association as note administrator and U.S. Bank National Association as trustee, which governs the issuance of approximately $350.2 million principal balance secured floating rate notes (the “Notes”). In addition, concurrently with the issuance of the Notes, the 2015 Issuer also issued 78,188,494 Preferred Shares, par value of $0.001 per share and with an aggregate liquidation preference and notional amount equal to $1,000 per share (the “Preferred Shares”), which were not offered as part of closing the indenture. For U.S. federal income tax purposes, the 2015 Issuer and 2015 Co-Issuer are disregarded entities.
On June 29, 2017, BSPRT 2017-FL1 Issuer, Ltd. (the “2017 Issuer”) and BSPRT 2017-FL1 Co-Issuer, LLC (the “2017 Co-Issuer”), both wholly owned indirect subsidiaries of the Company, entered into an indenture with the OP, as advancing agent, U.S. Bank National Association as note administrator and U.S. Bank National Association as trustee, which governs the issuance of approximately $339.5 million principal balance secured floating rate notes (the “Notes”). In addition, concurrently with the issuance of the Notes, the 2017 Issuer also issued 78,561,345 Preferred Shares, par value of $0.001 per share and with an aggregate liquidation preference and notional amount equal to $1,000 per share (the “Preferred Shares”), which were not offered as part of closing the indenture. For U.S. federal income tax purposes, the 2017 Issuer and 2017 Co-Issuer are disregarded entities.
As of September 30, 2017 and December 31, 2016, the CLO Notes issued in 2015 are collateralized by interests in a pool of 1742 and 2741 mortgage assets having a total principal balance of $321.8$579.6 million and $419.3$523.2 million, respectively (the “Mortgage Assets”"2018-FL3 Mortgage Assets") originated by a subsidiary of the Company.. The sale of the 2018-FL3 Mortgage Assets to BSPRT 2018-FL3 Issuer, Ltd. is governed by a Mortgage Asset Purchase Agreement dated as of April 5, 2018, between the 2015Company and BSPRT 2018-FL3 Issuer, Ltd.
As of March 31, 2020 and December 31, 2019 the notes issued by BSPRT 2018-FL4 Issuer, Ltd. and BSPRT 2018-FL4 Co-Issuer, LLC, each wholly owned indirect subsidiaries of the Company, are collateralized by interests in a pool of 53 and 49 mortgage assets having a principal balance of $868.7 million and $867.9 million, respectively (the "2018-FL4 Mortgage Assets"). The sale of the 2018-FL4 Mortgage Assets to BSPRT 2018-FL4 Issuer is governed by a Mortgage Asset Purchase Agreement dated as of October 19, 2015,12, 2018, between the Company and the 2015BSPRT 2018-FL4 Issuer. In connection with the securitization, the 2015 Issuer and 2015 Co-Issuer offered and sold the following classes of Notes to third parties: Class A, Class B and Class C. A wholly owned subsidiary of the Company retained approximately $56.0 million of the total $76.0 million of Class C and all of the preferred equity in the Issuer. The retained Class C and its related interest income and the preferred equity are eliminated in the Company's consolidated financial statements. The Company, as the holder of preferred equity in the 2015 Issuer, will absorb the first losses of the CLO, which may have a negative impact to the Company's result of operations. The issuance of the CLO also results in an increase in interest expense within the Consolidated Statements of Operations.
As of September 30, 2017March 31, 2020 and December 31, 2019, the CLO Notesnotes issued in 2017by BSPRT 2019-FL5 Issuer, Ltd. and BSPRT 2019-FL5 Co-Issuer, LLC, each wholly owned indirect subsidiaries of the Company, are collateralized by interests in a pool of 2353 and 48 mortgage assets having a total principal balance of $418.1$803.4 million and $809.4 million respectively (the “Mortgage Assets”"2019-FL5 Mortgage Assets") originated by a subsidiary of the Company.. The sale of the 2019-FL5 Mortgage Assets to the 2017BSPRT 2019-FL5 Issuer is governed by a Mortgage Asset Purchase Agreement dated as of June 29, 2017,May 30, 2019, between the Company and the 2017BSPRT 2019-FL5 Issuer. In connection with the securitization, the 2017 Issuer and 2017 Co-Issuer offered and sold the following classes of Notes to third parties: Class A, Class B and Class C. A wholly owned subsidiary of the Company retained all of the preferred equity in the 2017 Issuer. The Company, as the holder of preferred equity in the 2017 Issuer, will absorb the first losses of the CLO, which may have a negative impact to the Company's result of operations. The issuance of the CLO also results in an increase in interest expense within the Consolidated Statements of Operations.











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Table of Contents
BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2017March 31, 2020
(Unaudited)

The Company, through its wholly-owned subsidiaries, holds the preferred equity tranches of the above CLOs of approximately $256.9 million and $305.4 million as of March 31, 2020 and December 31, 2019, respectively. The following tables representtable represents the terms of the 2015notes issued by the 2018-FL3 Issuer, 2018-FL4 Issuer and 2017 CLOs issued, respectively.2019-FL5 Issuer (the "CLOs), respectively, as of March 31, 2020 (dollars in thousands):
CLO Facility Tranche Par Value Issued 
Par Value Outstanding (1)
 Interest Rate Maturity Date
2018-FL3 Issuer Tranche A $286,700
 $275,800
 1M LIBOR + 105 10/15/2034
2018-FL3 Issuer Tranche A-S 77,775
 77,775
 1M LIBOR + 135 10/15/2034
2018-FL3 Issuer Tranche B 41,175
 41,175
 1M LIBOR + 165 10/15/2034
2018-FL3 Issuer Tranche C 39,650
 39,650
 1M LIBOR + 255 10/15/2034
2018-FL3 Issuer Tranche D 42,700
 42,700
 1M LIBOR + 345 10/15/2034
2018-FL4 Issuer Tranche A 416,827
 416,827
 1M LIBOR + 105 9/15/2035
2018-FL4 Issuer Tranche A-S 73,813
 73,813
 1M LIBOR + 130 9/15/2035
2018-FL4 Issuer Tranche B 56,446
 56,446
 1M LIBOR + 160 9/15/2035
2018-FL4 Issuer Tranche C 68,385
 68,385
 1M LIBOR + 210 9/15/2035
2018-FL4 Issuer Tranche D 57,531
 57,531
 1M LIBOR + 275 9/15/2035
2019-FL5 Issuer Tranche A 407,025
 407,025
 1M LIBOR + 115 5/15/2029
2019-FL5 Issuer Tranche A-S 76,950
 76,950
 1M LIBOR + 148 5/15/2029
2019-FL5 Issuer Tranche B 50,000
 50,000
 1M LIBOR + 140 5/15/2029
2019-FL5 Issuer Tranche C 61,374
 61,374
 1M LIBOR + 200 5/15/2029
2019-FL5 Issuer Tranche D 48,600
 5,000
 1M LIBOR + 240 5/15/2029
2019-FL5 Issuer Tranche E 20,250
 3,000
 1M LIBOR + 285 5/15/2029
    $1,825,201
 $1,753,451
    
___________________
2015 Facility ($000s) Par Value Issued 
Par Value Outstanding (*)
 Interest Rate Maturity Date
As of September 30, 2017        
Tranche A $231,345
 $124,690
 1M LIBOR + 175 8/1/2030
Tranche B 42,841
 42,841
 1M LIBOR + 388 8/1/2030
Tranche C 76,044
 20,000
 1M LIBOR + 525 8/1/2030
  $350,230
 $187,531
    
         
As of December 31, 2016        
Tranche A $231,345
 $222,195
 1M LIBOR + 175 8/1/2030
Tranche B 42,841
 42,841
 1M LIBOR + 388 8/1/2030
Tranche C 76,044
 20,000
 1M LIBOR + 525 8/1/2030
  $350,230
 $285,036
    
________________________
*(1) Excludes $56.0 million and $56.0$267.1 million of Tranche C of Company issued CLO notes, held by the Company, which eliminatesare eliminated within the collateralized loan obligation line of the consolidated balance sheets as of September 30, 2017 and DecemberMarch 31, 2016, respectively.2020.


31
2017 Facility ($000s) Par Value Issued Par Value Outstanding Interest Rate Maturity Date
As of September 30, 2017        
Tranche A $223,600
 $223,600
 1M LIBOR + 135 7/1/2027
Tranche B 48,000
 48,000
 1M LIBOR + 240 7/1/2027
Tranche C 67,900
 67,900
 1M LIBOR + 425 7/1/2027
  $339,500
 $339,500
    
         
BENEFIT STREET PARTNERS REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2020
(Unaudited)

The following table represents the terms of the notes issued by the 2017-FL1 Issuer, 2017-FL2 Issuer, 2018-FL3 Issuer and 2018-FL4 Issuer, as of December 31, 2019 (dollars in thousands):
CLO Facility Tranche Par Value Issued 
Par Value Outstanding (1)
 Interest Rate Maturity Date
2017-FL2 Issuer Tranche A $237,970
 $—
 1M LIBOR + 82 10/15/2034
2017-FL2 Issuer Tranche A-S 36,357
 —
 1M LIBOR + 110 10/15/2034
2017-FL2 Issuer Tranche B 26,441
 —
 1M LIBOR + 140 10/15/2034
2017-FL2 Issuer Tranche C 25,339
 —
 1M LIBOR + 215 10/15/2034
2017-FL2 Issuer Tranche D 35,255
 21,444
 1M LIBOR + 345 10/15/2034
2018-FL3 Issuer Tranche A 286,700
 286,700
 1M LIBOR + 105 10/15/2034
2018-FL3 Issuer Tranche A-S 77,775
 77,775
 1M LIBOR + 135 10/15/2034
2018-FL3 Issuer Tranche B 41,175
 41,175
 1M LIBOR + 165 10/15/2034
2018-FL3 Issuer Tranche C 39,650
 39,650
 1M LIBOR + 255 10/15/2034
2018-FL3 Issuer Tranche D 42,700
 42,700
 1M LIBOR + 345 10/15/2034
2018-FL4 Issuer Tranche A 416,827
 416,827
 1M LIBOR + 105 9/15/2035
2018-FL4 Issuer Tranche A-S 73,813
 73,813
 1M LIBOR + 130 9/15/2035
2018-FL4 Issuer Tranche B 56,446
 56,446
 1M LIBOR + 160 9/15/2035
2018-FL4 Issuer Tranche C 68,385
 68,385
 1M LIBOR + 210 9/15/2035
2018-FL4 Issuer Tranche D 57,531
 57,531
 1M LIBOR + 275 9/15/2035
2019-FL5 Issuer Tranche A 407,025
 407,025
 1M LIBOR + 115 5/15/2029
2019-FL5 Issuer Tranche A-S 76,950
 76,950
 1M LIBOR + 148 5/15/2029
2019-FL5 Issuer Tranche B 50,000
 50,000
 1M LIBOR + 140 5/15/2029
2019-FL5 Issuer Tranche C 61,374
 61,374
 1M LIBOR + 200 5/15/2029
2019-FL5 Issuer Tranche D 48,600
 24,300
 1M LIBOR + 240 5/15/2029
2019-FL5 Issuer Tranche E 20,250
 20,250
 1M LIBOR + 285 5/15/2029
    $2,186,563
 $1,822,345
    
(1) Excludes $261.4 million of CLO notes, held by the Company, which are eliminated within the collateralized loan obligation line of the consolidated balance sheets as of December 31, 2019.

32
BENEFIT STREET PARTNERS REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2020
(Unaudited)

The below table reflects the total assets and liabilities of the Company's twooutstanding CLOs. The CLOs are considered VIEs and are consolidated into the Company's consolidated financial statements as of September 30, 2017March 31, 2020 and December 31, 20162019 as the Company is the primary beneficiary of the VIEs.VIE. The Company is the primary beneficiary of the CLOs because (i) the Company has the power to direct the activities that most significantly affect the VIEs'VIE’s economic performance and (ii) the right to receive benefits from the VIEs or the obligation to absorb losses of the VIEs that could be significant to the VIEs.VIE.
Assets (dollars in thousands) March 31, 2020 December 31, 2019
Cash (1)
 $28,680
 $89,946
Commercial mortgage loans, held for investment, net (2)
 2,235,406
 2,294,663
Accrued interest receivable 10,522
 6,254
Total Assets $2,274,608
 $2,390,863
     
Liabilities    
Notes payable (3)(4)
 $2,006,137
 $2,064,601
Accrued interest payable 1,659
 2,576
Total Liabilities $2,007,796
 $2,067,177

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Table of Contents
BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2017
(Unaudited)

Assets ($000s) September 30, 2017 December 31, 2016
Cash (1)
 $37,615
 $5
Commercial mortgage loans, held for investment, net of allowance of $1,431 and $1,017 (2)
 699,928
 417,057
Accrued interest receivable 1,899
 1,101
Total assets $739,442
 $418,163
     
Liabilities    
Notes payable (3)(4)
 $571,303
 $334,246
Interest payable 980
 564
Total liabilities $572,283
 $334,810
     
_______________________________________________
(1) Includes $37.5$28.2 million and $89.3 million of cash held by the servicer related to CLO loan payoffs as of September 30, 2017.March 31, 2020 and December 31, 2019, respectively.
(2) The balance is presented net of allowance for loancredit loss of $1.4$10.5 million and $1.0$0.8 million as of September 30, 2017March 31, 2020 and December 31, 2016,2019, respectively.
(3) Includes $55.8$267.1 million and $55.8$261.4 million of Tranche C of Company issued CLO notes, held by the Company, which eliminatesare eliminated within the Collateralcollateralized loan obligationsobligation line of the consolidated balance sheets as of September 30, 2017March 31, 2020 and December 31, 2016,2019, respectively.
(4) The balance is presented net of deferred financing cost and discount of $11.5$14.4 million and $6.8$19.2 million as of September 30, 2017March 31, 2020 and December 31, 2016,2019, respectively.

33
BENEFIT STREET PARTNERS REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2020
(Unaudited)

Note 68 - Net IncomeEarnings Per Share
BasicThe Company uses the two-class method in calculating basic and diluted earnings per share. Net income/(loss) is allocated between our common share (“EPS”) is computed by dividingstock and other participating securities based on their participation rights. Diluted net income ofper share has been computed using the Company by the weighted-average number of common shares outstanding. Diluted EPS is computed in the same manner as basic EPS, except theweighted average number of shares is increased to include additionalof common shares that would have beenstock outstanding if potential common shares with aand other dilutive effect had been issued. Potential common shares consist primarily of share-based compensation awards calculated using the treasury stock method. As of September 30, 2017 and September 30, 2016, the Company did not have any anti-dilutive common shares outstanding.securities. The following table ispresents a summaryreconciliation of the numerators and denominators of the basic and diluted net incomeearnings per share computationcomputations and the calculation of basic and diluted earnings per share for the three and nine months ended September 30, 2017March 31, 2020 and 2016, respectively:March 31, 2019 (in thousands, except share and per share data):
 Three Months Ended September 30, Nine Months Ended September 30,
 2017 2016 2017 2016
Net income (in thousands)$6,975
 $5,373
 $19,305
 $23,653
Basic weighted average shares outstanding31,741,679
 31,516,876
 31,778,169
 31,622,796
Unvested restricted shares14,824
 7,035
 12,098
 6,274
Diluted weighted average shares outstanding31,756,503
 31,523,911
 31,790,267
 31,629,070
Basic net income per share$0.22
 $0.17
 $0.61
 $0.75
Diluted net income per share$0.22
 $0.17
 $0.61
 $0.75
 Three Months Ended March 31,
Numerator2020 2019
Net income/(Loss)$(7,400) $19,890
Less: Preferred stock dividends4,515
 3,320
Less: Undistributed earnings allocated to preferred stock—
 462
Net income/(Loss) attributable to common shareholders (for basic and diluted earnings per share)(11,915) 16,108

   
Denominator   
Weighted-average common shares outstanding for basic earnings per share44,263,334
 39,798,215
Effect of dilutive shares:   
Unvested restricted shares11,518
 13,089
Weighted-average common shares outstanding for diluted earnings per share44,274,852
 39,811,304



 

Basic earnings per share$(0.27) $0.40
Diluted earnings per share$(0.27) $0.40

34
BENEFIT STREET PARTNERS REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2020
(Unaudited)

Note 79 - Common Stock Transactions
As of September 30, 2017March 31, 2020 and December 31, 2016,2019, the Company had 31,641,27544,396,346 and 31,884,63143,916,815 shares of common stock outstanding, respectively, including shares issued pursuant to the Dividend Reinvestment Plan ("DRIP"Company's distribution reinvestment plan (the "DRIP"), share repurchases and unvested restricted shares.
OnAs of March 31, 2020 and December 30, 2014,31, 2019, the Company filed with the Maryland State Department of Assessmentshad 40,514 and Taxation articles supplementary to its charter that reclassified 1,000 authorized but unissued40,500 shares of the Company’s common stock asSeries A Preferred Stock outstanding, respectively and 1,400 shares of convertible stock and setSeries C Preferred Stock outstanding.
The following tables present the terms of such convertible shares. The Company then issued 1,000 convertible shares to the Former Advisor for $1.00 per share. The convertible shares automatically converted to shares of common stock upon the first occurrence of certain triggering events, including the termination of the Advisory Agreement with the Former Advisor and the

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2017
(Unaudited)

Company, with payouts dependent on the achievement of certain stockholder total return thresholds. Subsequent to September 30, 2016, the Company determined that as a result of the termination of the advisory agreement between the Former Advisor and the Company a triggering event had occurred. Based on the Company’s determination of the enterprise value of the Company on the date of the triggering event, the total distributions paid to the Company’s stockholders through the date of the triggering event, and the sum ofactivity in the Company's stockholders’ invested capital as ofSeries A Preferred Stock for the date ofperiods ended March 31, 2020 and March 31, 2019, respectively (dollars in thousands, except share amounts):
Series A Preferred Stock Shares Amount
Balance, December 31, 2019 40,500
 $202,144
Issuance of Preferred Stock, net of offering cost 14
 70
Dividends paid in Preferred Stock —
 2
Offering Costs —
 (5)
Amortization of offering costs —
 24
Ending Balance, March 31, 2020 40,514
 $202,235
     
  Shares Amount
Balance, December 31, 2018 29,249
 $145,786
Issuance of Preferred Stock 2,996
 14,979
Amortization of offering costs —
 25
Ending Balance, March 31, 2019 32,245
 $160,790
The following table presents the triggering event, thatactivity in the convertible shares converted into a number of common shares equal to zero. As a result,Company's Series C Preferred Stock for the convertible shares that were issued to the Former Advisor have been extinguished and no common shares were issuedperiod ended March 31, 2020 (dollars in connection with the conversion and the par value of the shares was transferred to Additional Paid In Capital upon extinguishment.thousands, except share amounts):
Series C Preferred Stock Shares Amount
Balance, December 31, 2019 1,400
 $6,966
Issuance of Preferred Stock, net of offering cost —
 —
Dividends paid in Preferred Stock —
 —
Offering Costs —
 (5)
Amortization of offering costs —
 1
Ending Balance, March 31, 2020 1,400
 $6,962
Distributions
In order to maintain its election to qualify as a REIT, the Company must currently distribute, at a minimum, an amount equal to 90% of its taxable income, without regard to the deduction for distributions paid and excluding net capital gains. The Company must distribute 100% of its taxable income (including net capital gains) to avoid paying corporate U.S. federal income taxes.
On May 13, 2013, the Company's board of directors authorized and declared a distribution calculated daily at a rate of $0.00565068493 per day, which is equivalent to $2.0625 per annum, per share of common stock. In March 2016, the Company's board of directors ratified the existing distribution amount equivalent to $2.0625 per annum for calendar year 2016. On November 10, 2016 the Company’s board of directors changed the DRIP offer price to $20.05, which is equal to the estimated per-share NAV as of September 30, 2016 approved by the board of directors. In August 2017, the Company’s board of directors authorized and declared a distribution calculated daily at a rate of $0.00394521 per day, which is equivalent to $1.44 per annum, per share of common stock. The price change was applied to the reinvestment of distributions commencing with the October 2016 distributions. On May 10, 2017, the Company’s board of directors changed the methodology used to determine the DRIP offer price to be the lesser of (i) the Company’s most recent estimated per-share NAV, as approved by the Company’s board of directors from time to time, and (ii) the Company’s book value per share, computed in accordance with GAAP. Based on this new methodology, the DRIP offer price for May 2017, June 2017 and July 2017 was $19.62 per share, which was the GAAP book value per share as of March 31, 2017. The DRIP offer price for September 2017, October 2017 and November 2017 was $19.29 per share, which was the GAAP book value per share as of June 30, 2017. Starting December 2017 the DRIP offer price will be $19.02 per share, which is the Company's estimated per share NAV as of September 30, 2017.
The Company's distributions are payable by the fifth day following each month end to stockholders of record at the close of business each day during the prior month. Distribution payments are dependent on the availability of funds. The Company's board of directors may reduce the amount of distributions paid or suspend distribution payments at any time, and therefore, distributions payments are not assured.
For the three months ended March 31, 2020 and March 31, 2019, the Company declared daily common stock distributions equivalent to $1.44 per annum per share. For the three months ended March 31, 2020 and March 31, 2019, the Company declared monthly Preferred Stock dividends per share equivalent to the amount of common stock distributions that would be paid on a conversion of Preferred Stock into common stock.

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BENEFIT STREET PARTNERS REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2020
(Unaudited)

As of March 31, 2020 and December 31, 2019, the Company had declared but unpaid common stock distributions of $5.4 million and $5.4 million, respectively. Additionally, as of March 31, 2020 and December 31, 2019, the Company had declared but unpaid Series A Preferred Stock distributions of $1.5 million and $1.5 million, respectively, and $0.1 million and $0.1 million of Series C Preferred stock, respectively. These amounts are included in Distributions payable on the Company’s consolidated balance sheets.
The Company distributed $47.6$15.8 million during the ninethree months ended September 30, 2017,March 31, 2020, comprised of $31.3$12.2 million in cash and $16.3$3.6 million in shares of common stock issued under the DRIP. The Company distributed $49.0$14.0 million during the ninethree months ended September 30, 2016,March 31, 2019, comprised of $30.0$10.6 million in cash and $19.1$3.4 million in shares of common stock issued under the DRIP.
Share Repurchase Program
The Company's board of directors unanimously approved an amended and restated share repurchase program (the “SRP”), which became effective on February 28, 2016. The SRP enables stockholders to sell their shares to the Company. Subject to certain conditions, stockholders that purchased shares of the Company's common stock or received their shares from us (directly or indirectly) through one or more non-cash transactions and have held their shares for a period of at least one year may request that the Company repurchase their shares of common stock so long as the repurchase otherwise complies with the provisions of Maryland law. Repurchase requests made following the death or qualifying disability of a stockholder will not be subject to any minimum holding period.
On August 10, 2017, the Company's board of directors amended the SRP to provide that the repurchase price per share for requests will be equal to the lesser of (i) the Company’s most recent estimated per-share NAV,net asset value ("NAV"), as approved by the Company’s board of directors from time to time, and (ii) the Company’s book value per share, computed in accordance with GAAP, multiplied by a percentage equal to (i) 92.5%, if the person seeking repurchase has held his or her shares for a period greater than one year and less than two years; (ii) 95%, if the person seeking repurchase has held his or her shares for a period greater than two years and less than three years; (iii) 97.5%, if the person seeking repurchase has held his or her shares for a period greater than three years and less than four years; or (iv) 100%, if the person seeking repurchase has held his or her shares for a period greater than four years or in the case of requests for death or qualifying disability.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2017
(Unaudited)

The Company’s most recent estimated per-share NAV is $19.02 and$18.57, as determined by the board of directors, as of September 30, 2019. The Company’s GAAP book value per share as of September 30, 2017March 31, 2020 is $19.07. These amendments will begin to apply to repurchases made pursuant to the SRP for the fiscal semester ended December 31, 2017.
$16.25.
Repurchase requests related to death or a qualifying disability must satisfy certain conditions, each of which are assessed by and at the sole discretion of the Company, including the following conditions. In the case of death, the shareholder must be a natural person (or a revocable grantor trust) and the Company must receive a written notice from the estate of the shareholder, the recipient of the shares through bequest or inheritance, or the trustee in the case of a revocable grantor trust. In the case of a “qualifying disability”, the shareholder must be a natural person (or a revocable grantor trust) and the Company must receive a written notice from the shareholder, or the trustee in the case of a revocable grantor trust, that the condition was not pre-existing on the date the shares were acquired. In order for a disability to be considered a “qualifying disability”, the shareholder must receive and provide evidence (the shareholder application and the notice of final determination) of disability based upon a physical or mental condition or impairment made by a government agency responsible for reviewing and determining disability retirement benefits (e.g. the Social Security Administration).

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BENEFIT STREET PARTNERS REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2020
(Unaudited)

Repurchases pursuant to the SRP, when requested, generally will be made semiannually (each six-month period ending June 30 or December 31, a “fiscal semester”). Repurchases for any fiscal semester will be limited to a maximum of 2.5% of the weighted average number of shares of common stock outstanding during the previous fiscal year, with a maximum for any fiscal year of 5.0% of the weighted average number of shares of common stock outstanding during the previous fiscal year. Funding for repurchases pursuant to the SRP for any given fiscal semester will be limited to proceeds received during that same fiscal semester through the issuance of common stock pursuant to any DRIP in effect from time to time, provided that the Company's board of directors has the power, in its sole discretion, to determine the amount of shares repurchased during any fiscal semester as well as the amount of funds to be used for that purpose. Any repurchase requests received during such fiscal semester will be paid at the price, computed as described above on the last day of such fiscal semester. On March 26, 2020, the Company temporarily suspended the DRIP. Therefore amounts available to fund repurchases for the first semester of 2020 will be limited to DRIP proceeds from January and February 2020, and amounts available to fund repurchases for the second semester of 2020 will depend on the amount of dividends paid and the reactivation of the DRIP. Due to these limitations, the Company cannot guarantee that the Company will be able to accommodate all repurchase requests made during any fiscal semester or fiscal year. However, a stockholder may withdraw its request at any time or ask that the Company honors the request when funds are available. Pending repurchase requests will be honored on a pro rata basis. The Company will generally pay repurchase proceeds, less any applicable tax or other withholding required by law, by the 31st day following the end of the fiscal semester during which the repurchase request was made.
When a stockholder requests redemption and the redemption is approved, the Company will reclassify such obligation from equity to a liability based on the settlement value of the obligation. Shares repurchased under the SRP will have the status of authorized but unissued shares.

The following table reflects the number of shares repurchased under the SRP cumulatively through September 30, 2017:March 31, 2020:
 Number of Requests Number of Shares Repurchased Average Price per Share
Cumulative as of December 31, 20195,878
 3,542,267
 $20.23
January 1 - January 31, 2020(1)
1,170
 361,829
 18.56
February 1 - February 28, 2020—
 —
 N/A
March 1 - March 31, 2020—
 —
 N/A
Cumulative as of March 31, 20207,048
 3,904,096
 $20.08
_______________________

  Number of Requests Number of Shares Repurchased Average Price per Share
Cumulative as of December 31, 2016 985
 918,683
 $23.94
January 1 - March 31, 2017 502
 496,678
 19.04
April 1 - June 30, 2017 2
 327
 20.08
July 1 - September 30, 2017 636
 575,703
 19.24
Cumulative as of September 30, 2017 2,125
 1,991,391
 $21.37
(1) Reflects shares repurchased in January 2020 pursuant to repurchase requests submitted for the second semester of 2019. Pursuant to the terms of the SRP, the Company is only authorized to repurchase up to the amount of proceeds reinvested through our DRIP during the applicable semester. As a result, redemption requests for 11,496 shares were not fulfilled for the second semester of 2019.
Note 810 - Commitments and Contingencies
Unfunded Commitments forUnder Commercial Mortgage Loans
As of September 30, 2017March 31, 2020 and December 31, 2016,2019, the Company had the below unfunded commitments to the Company's borrowers.borrowers (dollars in thousands):
Funding ExpirationMarch 31, 2020 December 31, 2019
2020$62,515
 $90,519
202178,497
 100,861
202264,972
 56,863
202368,664
 8,637
2024 and beyond5,450
 5,450
 $280,098
 $262,330
The borrowers are required to meet or maintain certain metrics in order to qualify for the unfunded commitment amounts.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2017March 31, 2020
(Unaudited)

Funding Expiration September 30, 2017 December 31, 2016
2016 $—
 $—
2017 4,766
 7,794
2018 44,180
 62,368
2019 27,705
 9,072
2020 19,856
 —
Total $96,507
 $79,234

Litigation and Regulatory Matters
In the ordinary course of business, the Company may become subject to litigation, claims and regulatory matters. Except as noted below, theThe Company has no knowledge of material legal or regulatory proceedings pending or known to be contemplated against the Company at this time.  On June 6, 2016, an action was filed against the Company and two of its directors in the United States District Court for the Southern District of New York and styled Rurode v. Realty Finance Trust, Inc., et. al., No. 1:16-cv-04553.  The plaintiff’s individual and derivative complaint alleged that the Company made material misstatements in the proxy statement for its 2016 annual stockholder’s meeting related to an alleged planned merger transaction between the Company and an affiliate of its Former advisor.  The plaintiff alleged violations of Section 14(a) of the Securities Exchange Act of 1934 and sought to enjoin the Company’s 2016 annual meeting.  On June 28, 2016, the parties filed, and the court subsequently entered, a stipulation and order of dismissal of the action, but provided that the court would retain jurisdiction to consider any application by plaintiff for an award of attorneys’ fees.  On October 20, 2016, the plaintiff submitted a request for $0.75 million in fees and expenses. On November 14, 2016, the defendants filed a memorandum of law in opposition to that fee request. On July 19, 2017, the Company and the plaintiff entered into an agreement pursuant to which the Company paid $245,000 in attorneys’ fees and expenses and the plaintiff agreed to withdraw its October 20, 2016 fee request to the court and to release the Company from any further claims related to such fee request.
Note 911 - Related Party Transactions and Arrangements
The Company entered intoAdvisory Agreement Fees and Reimbursements
Pursuant to the Advisory Agreement, with the Advisor on September 29, 2016.
The Advisor receives an acquisition fee of 1.0% of the principal amount funded by the Company makes or was required to originate or acquire commercial mortgage loans (or anticipated net equity funded bymake the following payments and reimbursements to the Advisor:
•The Company inreimburses the caseAdvisor’s costs of acquisitions of real estate securities) and receives reimbursement for insourced acquisition expenses of 0.5%; provided, however, that if and when the aggregate purchase price for all investments acquired after the date ofproviding services pursuant to the Advisory Agreement, reaches $600,000,000,except the salaries and benefits paid by the Advisor to the Company’s obligation to pay acquisition fees to the Advisor shall terminate. In no event will the total of all acquisition fees and acquisition expenses exceed 4.5% of the principal amount funded with respect to the Company's total portfolio including subsequent funding to investments in the Company's portfolio. In September 2017, the Company's aggregate purchase price for all investments acquired reached $600,000,000, and concurrently terminated the 1.0% acquisition fee payments to the Advisor for all investments subsequent to the limit being reached.executive officers.
•The Company pays the Advisor, or its affiliates, a monthly asset management fee equal to one-twelfth of 1.5% of stockholder’s equity as calculated pursuant to the Advisory Agreement.
•The Company will pay the Advisor an annual subordinated performance fee calculated on the basis of total return to stockholders, payable monthly in arrears, such that for any year in which total return on stockholders’ capital exceeds 6.0% per annum, theour Advisor will be entitled to 15.0% of the excess total return; provided that in no event will the annual subordinated performance fee payable to theour Advisor exceed 10.0% of the aggregate total return for such year.
•The Company will reimbursereimburses the Advisor for insourced expenses incurred by the Advisor on the Company‘s behalf related to administrative services such as accounting, legalselecting, evaluating, originating and other servicesacquiring investments in accordancean amount up to 0.5% of the principal amount funded by the Company to originate or acquire commercial mortgage loans and up to 0.5% of the anticipated net equity funded by the Company to acquire real estate securities investments.
The table below shows the costs incurred due to arrangements with our Advisor and its affiliates during the advisory agreement.
Until September 29, 2016, the Former Advisor served as the Company’s advisorthree months ended March 31, 2020 and March 31, 2019 and the Companyassociated payable as of March 31, 2020 and December 31, 2019 (dollars in thousands):
 
Three Months Ended
March 31,
 Payable as of
 2020 2019 March 31, 2020 December 31, 2019
Acquisition expenses (1)
$142
 $248
 $1
 $225
Administrative services expenses4,112
 3,963
 4,392
 1,238
Asset management and subordinated performance fee3,912
 3,644
 5,901
 3,326
Other related party expenses (2)(3)
582
 265
 3,744
 —
Total related party fees and reimbursements$8,748
 $8,120
 $14,038
 $4,789
________________________
(1) Total acquisition expenses paid the Former Advisor certain fees and expense reimbursements pursuant to its advisory agreement with the Former Advisor.
Duringduring the three and nine months ended September 30, 2017, the Company paid acquisition feesMarch 31, 2020 and expenses of $3.0March 31, 2019 were $2.1 million and $9.0$1.8 million respectively, of which $1.7$2.0 million and $4.2$1.5 million respectively, have been recognizedwere capitalized within the commercial mortgage loans, held for investment line of the consolidated balance sheets for the periods ended March 31, 2020 and 2019.
(2) These are primarily related to reimbursable costs incurred related to the increase in Acquisition fees andloan origination activities. These amounts are included in Other expenses onin the Company's consolidated statements of operations. In addition, during
(3) The related party payable includes $2.5 million of payments made by the three and nine months ended September 30, 2017,Advisor to third party vendors on behalf of the Company and $0.7 million of capitalized $1.3 millionacquisition expenses that are amortized over the life of the loan.
The payables as of March 31, 2020 and $4.8 million, respectively of acquisition fees andDecember 31, 2019 in the table above are included in Due to affiliates on the Company's consolidated balance sheets.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2017March 31, 2020
(Unaudited)

expenses included in CommercialOther Transactions
On February 22, 2018, the Company purchased commercial mortgage loans, withinheld-for-sale from an entity that is an affiliate of our Advisor, for an aggregate purchase price of $27.8 million. The purchase of the Company'scommercial mortgage loans and the $27.8 million purchase price were approved by the Company’s board of directors. On April 18, 2018, the Company sold $23.3 million of these commercial mortgage loans into a CMBS securitization. There had been a full principal pay-down on the remaining $4.5 million of these commercial mortgage loans as of March 31, 2020, which were previously recorded in commercial mortgage loans, held-for-investment, on the consolidated balance sheets, which is amortized over the life of each investment using the effective interest method.sheets.
During the three and nine months ended September 30, 2016,On March 26, 2020, the Company paid acquisition fees and expensescertain of $0.3its subsidiaries entered into a material amendment to an existing lending agreement with SBL, an entity that also holds 14,950 of the Company’s outstanding shares of Series A Preferred Stock, secured by a pledge of equity interests in certain of the Company’s subsidiaries, for a total commitment of $100.0 million with a maturity of February 10, 2023 and $0.6 million respectively, and recognizeda rate of one-month LIBOR + 4.5%. The amendment revised the same amounts respectively,terms of the existing SBL lending agreement, entered into in Acquisition fees and expensesFebruary 2020, to permit the Company to borrow under the agreement. The Company incurred $17 thousand of interest expense on the Company's consolidated statements of operations. The Company did not capitalize any acquisitions expenseslending agreement with SBL for the three and nine months ended September 30, 2016.
The Company paid the Former Advisor, or its affiliates, a monthly asset management fee equal to one-twelfthMarch 31, 2020. As of 0.75% of the cost of the Company's assets. The asset management feeMarch 31, 2020 there was based on the lower of the cost of the Company's assets and the fair value of the Company's assets (fair value consist of the market value of each portfolio investment as determined by the Former Advisor in accordance with the Company's valuation guidelines).
During the three and nine months ended September 30, 2017, the Company incurred $2.3 million and $7.0 million in asset management fees, respectively. During the three and nine months ended September 30, 2016, the Company incurred $1.1 million and $7.1 million in asset management fees, respectively. These asset management fees are recorded in "Asset management and subordinated performance fee" within the consolidated statements of operations.
The Company is required to pay the Advisor an annual subordinated performance fee calculated on the basis of total return to stockholders, payable monthly in arrears, such that for any year in which total return on stockholders’ capital exceeds 6.0% per annum, the Former Advisor will be entitled to 15.0% of the excess total return; provided that in no event will the annual subordinated performance fee payable to the Former Advisor exceed 10.0% of the aggregate total return for such year. This fee will be payable only upon the sale of assets, distributions or other event which results in the Company's return on stockholders’ capital exceeding 6.0% per annum.
The Company did not incur an annual subordinated performance fee during the three and nine months ended September 30, 2017 and September 30, 2016. These subordinated performance fees are recorded in "Asset management and subordinated performance fees" within the Company's consolidated statements of operations.
The table below depicts related party fees and reimbursements in connection with the operations of the Company for the three and nine months ended September 30, 2017 and 2016 and the associated payable as of September 30, 2017 and December 31, 2016 (in thousands):
  Three Months Ended September 30, Nine Months Ended September 30, Payable as of
  2017 2016 2017 2016 September 30, 2017 December 31, 2016
Total compensation and reimbursement for services provided by the Former Advisor, its affiliates, entities under common control with the Former Advisor and the Former Dealer Manager

 $—
 $—
 $—
 $—
 $480
 $480
Acquisition fees and expenses 3,014
 255
 8,968
 635
 212
 —
Administrative services expenses 1,480
—
2,480
 3,285
 3,835
 1,480
 1,000
Advisory and investment banking fee —
 —
 —
 6
 —
 —
Asset management and subordinated performance fee 2,299
 1,066
 6,952
 7,091
 2,299
 2,439
Other related party expenses 87
 6
 183
 56
 112
 145
Total related party fees and reimbursements $6,880
 $3,807
 $19,388
 $11,623
 $4,583
 $4,064
The payables as of September 30, 2017 and December 31, 2016 in the table above are included in "Due to affiliates" in the Company's consolidated balance sheets.
Subject to the limitations outlined below, the Company reimbursed the Former Advisor's cost of providing administrative services and personnel costs in connection with other services provided, in addition to paying an asset management fee;outstanding balance.

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BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2017
(Unaudited)

however, the Company did not reimburse the Former Advisor for personnel costs in connection with services for which the Former Advisor received acquisition fees or disposition fees. For the three and nine months ended September 30, 2017, the Company incurred $1.5 million and $3.3 million of administrative costs in connection with the operations of the Company, which is included in "Administrative services expenses" in the consolidated statements of operations. For the three and nine months ended September 30, 2016, the Company incurred $2.5 million and $3.8 million of administrative costs in connection with the operations of the Company, which is included in "Administrative services expenses" in the consolidated statements of operations.
The Advisor is required to pay any expenses in which the Company's operating expenses as defined by North American Securities Administrators Association at the end of the four preceding fiscal quarters exceeds the greater of (i) 2.0% of average invested assets or (ii) 25.0% of net income for such expense year. For the preceding four fiscal quarters, the Company did not exceed the greater of the two aforementioned criteria as of September 30, 2017.
The Company has also established a restricted share plan for the benefit of employees, directors, employees of the Advisor and its affiliates.
Note 1012 - Fair Value of Financial Instruments
GAAP establishes a hierarchy of valuation techniques based on the observability of inputs used in measuring financial instruments at fair values. GAAP establishes market-based or observable inputs as the preferred source of values, followed by valuation models using management assumptions in the absence of market inputs. The three levels of the hierarchy are described below:
Level I - Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date.
Level II - Inputs (other than quoted prices included in Level I) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life.
Level III - Unobservable inputs that reflect the entity’sentity's own assumptions about the assumptions that market participants would use in the pricing of the asset or liability and are consequently not based on market activity, but rather through particular valuation techniques.
The determination of where an asset or liability falls in the above hierarchy requires significant judgment and factors specific to the asset or liability. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company evaluates its hierarchy disclosures each quarter and depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter.
The Company has implemented valuation control processes to validate the fair value of the Company's financial instruments measured at fair value including those derived from pricing models. These control processes are designed to assure that the values used for financial reporting are based on observable inputs wherever possible. In the event that observable inputs are not available, the control processes are designed to assure that the valuation approach utilized is appropriate and consistently applied and the assumptions are reasonable.

Financial Instruments Measured at Fair Value on a Recurring Basis
CMBS, recorded in real estate securities, held-for-sale, measured at fair value on the consolidated balance sheets are valued utilizing both observable and unobservable market inputs. These factors include projected future cash flows, ratings, subordination levels, vintage, remaining lives, credit issues, and recent trades of similar real estate securities and the spreads used in the prior valuation. Depending upon the significance of the fair value inputs used in determining these fair
values, these real estate securities are classified in either Level II or Level III of the fair value hierarchy. The Company obtains current market spread information where available and uses this information in evaluating and validating the market price of all CMBS.securities. Depending upon the significance of the fair value inputs used in determining these fair values, these real estate securities are classified in either Level II or Level III of the fair value hierarchy. As of September 30, 2017 the Company had no CMBS. As ofMarch 31, 2020 and December 31, 2016,2019 the Company obtained broker quotesthird party pricing for determining the fair value of each CMBS investment, used. As the broker quotes were both limited and non-binding, the Company has classified the CMBS asresulting in a Level III.

II classification.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2017March 31, 2020
(Unaudited)

Commercial mortgage loans held-for-sale, measured at fair value in the Company's TRS are initially recorded at transaction proceeds, which are considered to be the best initial estimate of fair value. The Company engaged the services of a third party independent valuation firm to determine fair value of certain investments held by the Company. Fair value is determined using a discounted cash flow model that primarily considers changes in interest rates and credit spreads, weighted average life and current performance of the underlying collateral. This model uses market data from recent securitizations that have similar collateral to the Company’s loan portfolio and other information available from market participants. All results of the model are evaluated by the Company’s senior investment professionals. The Company alsoclassified the commercial mortgage loans held-for-sale, measured at fair value as Level III.
Other real estate investments, measured at fair value on the consolidated balance sheets are valued using unobservable inputs. The Company engaged the services of a third party independent valuation firm to determine fair value of certain investments, including preferred equity investments, held by the Company. Future profitFair value is determined using a discounted cash flow model that primarily considers changes in interest rates and loss fromcredit spreads, weighted average life and current performance of the securitization is not recognized, but overall spread moves are captured in the loan valuation, theunderlying collateral. The Company classified the commercial mortgage loans held-for-sale,other real estate investments, measured at fair value as Level III.

The fair value for Treasury note futures is derived using market prices.  Treasury note futures trade on the Chicago Mercantile Exchange (“CME”). The deliverable instruments are a variety of recently issued 10-year U.S. Treasury notes. The future contracts are liquid and are centrally cleared through the CME.  Treasury note futures are generally categorized in Level I of the fair value hierarchy.

The fair value for a credit default swap contract isswaps and interest rate swaps contracts are derived using a pricing modelmodels that isare widely accepted by marketplace participants. Credit default swaps and interest rate swaps are traded in the OTC market. The pricing model takesmodels take into account multiple inputs including specific contract terms, interest rate yield curves, interest rates, credit curves, recovery rates, andand/or current credit spreads obtained from swap counterparties and other market participants. Most inputs into the modelmodels are not subjective as they are observable in the marketplace or set per the contract. Valuation is primarily determined by the difference between the contract spread and the current market spread. The contract spread (or rate) is generally fixed and the market spread is determined by the credit risk of the underlying debt or reference entity. If the underlying indices are liquid and the OTC market for the current spread is active, credit default swaps and interest rate swaps are categorized in Level II of the fair value hierarchy. If the underlying indices are illiquid and the OTC market for the current spread is not active, credit default swaps are categorized in Level III of the fair value hierarchy. The credit default swaps and interest rate swaps are generally categorized in Level II of the fair value hierarchy.
A review of the fair value hierarchy classification is conducted on a quarterly basis. Changes in the type of inputs may result in a reclassification for certain assets or liabilities. The Company's policy with respect to transfers between levels of the fair value hierarchy is to recognize transfers into and out of each level as of the beginning of the reporting period. There were no material transfers between levels within fair value hierarchy during the quarter ended March 31, 2020.

40
BENEFIT STREET PARTNERS REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2020
(Unaudited)

The following table presents information about the Company’sCompany's financial instruments carried at fair value on a recurring basis in the consolidated balance sheets by its level in the fair value hierarchy as of September 30, 2017March 31, 2020 and December 31, 2016:2019 (dollars in thousands):
($ in thousands)Total Level I Level II Level III
September 30, 2017       
Assets, at fair value       
Real estate securities$—
 $—
 $—
 $—
Commercial mortgage loans, held-for-sale (1)
60,950
 —
 —
 60,950
Treasury note futures754
 754
 —
 —
Credit derivatives206
 —
 206
 —
Total assets, at fair value$61,910
 $754
 $206
—
$60,950
        
Liabilities, at fair value       
Credit derivatives$1,003
 $—
 $1,003
 $—
Total liabilities, at fair value$1,003
 $—
 $1,003
 $—
        
December 31, 2016
      
   Assets, at fair value       
Real estate securities$49,049
 $—
 $—
 $49,049
Commercial mortgage loans, held-for-sale (1)
—
 —
 —
 —
Treasury note futures—
 —
 —
 —
Credit derivatives—
 —
 —
 —
Total assets, at fair value$49,049
 $—
 $—
 $49,049
(1) Loans held in the Company's TRS, reported within "Commercial mortgage loans, held-for-sale, measured at fair value" on the consolidated balance sheets.  
 Total Level I Level II Level III
March 31, 2020       
Real estate securities, available for sale, measured at fair value$441,160
 $—
 $441,160
 $—
Commercial mortgage loans, held-for-sale, measured at fair value91,813
 —
 —
 91,813
Other real estate investments, measured at fair value2,496
 —
 —
 2,496
Credit default swaps1,173
 —
 1,173
 —
Interest rate swaps—
 —
 —
 —
Total assets, at fair value$536,642
 $—
 $442,333
 $94,309
        
Liabilities, at fair value       
Credit default swaps$4,016
 $—
 $4,016
 $—
Interest rate swaps1,512
 —
 1,512
 —
Treasury note futures—
 —
 —
 $—
Total liabilities, at fair value$5,528
 $—
 $5,528
 $—
        
December 31, 2019
      
Real estate securities, available for sale, measured at fair value$386,316
 $—
 $386,316
 $—
Commercial mortgage loans, held-for-sale, measured at fair value112,562
 —
 —
 112,562
Other real estate investments, measured at fair value

2,557
 —
 —
 2,557
Credit default swaps59
 —
 59
 —
Interest rate swaps325
 —
 325
 —
Treasury Note Futures735
 735
 —
 —
Total assets, at fair value$502,554
 $735
 $386,700
 $115,119
        
Liabilities, at fair value       
Credit Default Swaps$1,581
 $—
 $1,581
 $—
Total liabilities, at fair value$1,581
 $—
 $1,581
 $—

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BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2017March 31, 2020
(Unaudited)

The following table summarizes the valuation method and significant unobservable inputs used for the Company’s financial instruments that are categorized within Level III of the fair value hierarchy as of September 30, 2017. Both observable and unobservable inputs may be used to determine the fair value of positions that the Company has classified within the Level III category. As a result, the unrealized gains and losses for assets and liabilities within the Level III category may include changes in fair value that were attributable to both observable and unobservable inputs.
September 30, 2017Asset CategoryFair Value September 30, 2017 (in thousands)Valuation MethodologiesUnobservable Inputs (1)
Weighted Average (2)
Range
 Commercial mortgage loans, held-for-sale, measured at fair value$60,950Discounted Cash FlowYield4.39%4.21%-4.87%
(1) In determining certain of these inputs, the Company evaluates a variety of factors including economic conditions, industry and market developments, market valuations of comparable companies and company specific developments including exit strategies and realization opportunities. The Company has determined that market participants would take these inputs into account when valuing the investments.
(2) Inputs were weighted based on the fair value of the investments included in the range.


























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BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2017
(Unaudited)

The following table presents additional information about the Company’s financial instruments which are measured at fair value on a recurring basis as of September 30, 2017 and December 31, 2016 for which the Company has used Level III inputs to determine fair value (in thousands):
  September 30, 2017
  Commercial Mortgage Loans, held-for-sale, measured at fair value Real Estate Securities
Beginning balance, January 1, 2017 $—
 $49,049
Transfers into Level III   —
Total realized and unrealized gains (losses) included in earnings:    
Realized gain (loss) on sale of real estate securities —
 172
Impairment losses on real estate securities —
 
Net accretion —
 167
Unrealized gains (losses) included in OCI (1)
 —
 500
Purchases 60,950
 —
Sales / paydown —
 (49,888)
Cash repayments/receipts —
 —
Transfers out of Level III —
 —
Ending balance, September 30, 2017 $60,950
 $—
     
  December 31, 2016
  Commercial Mortgage Loans, held-for-sale, measured at fair value Real Estate Securities
Beginning balance, January 1, 2016 $—
 $—
Transfers into Level III —
 57,639
Total realized and unrealized gains (losses) included in earnings:    
Realized gain (loss) on sale of real estate securities —
 (874)
Impairment losses on real estate securities —
 (310)
Net accretion —
 —
Unrealized gains (losses) included in OCI —
 1,719
Purchases —
 —
Sales/paydown —
 (9,125)
Cash repayments/receipts —
 —
Transfers out of Level III —
 —
Ending balance, December 31, 2016 $—
 $49,049
________________________
(1) - Unrealized gains included in Other comprehensive income ("OCI") are attributable to assets held at December 31, 2016.





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BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2017
(Unaudited)

Financial Instruments Measured at Fair Value on a Non-Recurring Basis
The following table presents the Company's financial instruments carried at fair value on a non-recurring basis in the consolidated balance sheets by its level in the fair value hierarchy as of September 30, 2017 and December 31, 2016 (in thousands):
 Total Level I Level II Level III
September 30, 2017       
Commercial mortgage loans, held-for-sale (1)
$33,451
 $—
 $—
 $33,451
December 31, 2016       
Commercial mortgage loans, held-for-sale (1)
21,179
 —
 —
 21,179
(1) Fair value of the Commercial mortgage loans, held-for-sale as presented in the consolidated balance sheets is recorded at lower of cost or fair value. This treatment resulted in assets of $31,180 and $21,179 at September 30, 2017 and December 31, 2016, respectively.

The following table summarizes the valuation method and significant unobservable inputs used for the Company’s financial instruments that are categorized within Level III of the fair value hierarchy as of September 30, 2017andMarch 31, 2020 and December 31, 2016. Both observable and unobservable inputs may be used to determine the fair value of positions that the Company has classified within the Level III category. As a result, the unrealized gains and losses for assets and liabilities within the Level III category may include changes2019 (dollars in fair value that were attributable to both observable and unobservable inputs.thousands):
Asset CategoryFair Value Valuation Methodologies 
Unobservable Inputs (1)
 
Weighted Average (2)
 Range
March 31, 2020         
Commercial mortgage loans, held-for-sale, measured at fair value$91,813  Discounted Cash Flow  Yield 4.2% 2.4% - 5.6%
Other real estate investments, measured at fair value2,496  Discounted Cash Flow  Yield 13.4% 12.4% - 14.4%
          
December 31, 2019         
Commercial mortgage loans, held-for-sale, measured at fair value$112,562  Discounted Cash Flow  Yield 4.9% 4.7% - 5.2%
Other real estate investments, measured at fair value2,557  Discounted Cash Flow  Yield 12.4% 11.4% - 13.4%
($ in thousands)Asset CategoryFair Value September 30, 2017Valuation Methodologies
Unobservable Inputs (1)
Weighted Average (2)
Range
September 30, 2017Commercial mortgage loans, held-for-sale$33,451
Discounted Cash FlowYield10.18%10% - 13%
       
December 31, 2016Commercial mortgage loans, held-for-sale$21,179
Discounted Cash FlowYield10.80%10.5% - 11%
________________________
(1) In determining certain of these inputs, the Company evaluates a variety of factors including economic conditions, industry and market developments, market valuations of comparable companies and company specific developments including exit strategies and realization opportunities. The Company has determined that market participants would take these inputs into account when valuing the investments.
(2) Inputs were weighted based on the fair value of the investments included in the range.

A reviewIncreases or decreases in any of the fair value hierarchy classification is conducted on a quarterly basis. Changesabove unobservable inputs in the type of inputs mayisolation would result in a reclassification for certain assets. The Company's policy with respect to transfers between levels of thelower or higher fair value hierarchy is to recognize transfers into and out of each levelmeasurement for such assets.



42
BENEFIT STREET PARTNERS REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2020
(Unaudited)

The following table presents additional information about the Company’s financial instruments which are measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019 for which the beginning of the reporting period. There were no transfers between levels withinCompany has used Level III inputs to determine fair value hierarchy during the three and nine months ended September 30, 2017.(dollars in thousands):
  March 31, 2020
  Commercial Mortgage Loans, held-for-sale, measured at fair value  Other Real Estate Investments, measured at fair value
Beginning balance, January 1, 2020 $112,562
 $2,557
Transfers into Level III —
 —
Total realized and unrealized gain (loss) included in earnings:    
Realized gain (loss) on sale of commercial mortgage loans held-for-sale 9,404
 —
Unrealized gain (loss) on commercial mortgage loans held-for-sale and other real estate investments (1,934) (61)
Net accretion —
 —
Purchases 119,349
 —
Sales / paydowns (147,568) —
Cash repayments/receipts —
 —
Transfers out of Level III —
 —
Ending Balance, March 31, 2020 $91,813
 $2,496
     
  December 31, 2019
  Commercial Mortgage Loans, held-for-sale, measured at fair value  Other Real Estate Investments, measured at fair value
Beginning balance, January 1, 2019 $76,863
 $—
Transfers into Level III —
 —
Total realized and unrealized gain (loss) included in earnings:    
Realized gain (loss) on sale of real estate securities 37,832
 —
Realized gain (loss) on sale of commercial mortgage loan held-for-sale —
 —
Unrealized gain (loss) on commercial mortgage loans held-for-sale 312
 47
Net accretion —
 —
Purchases 1,015,677
 2,510
Sales / paydowns (1,008,050) —
Cash repayments/receipts —
 —
Transfers out of Level III (10,072) —
Ending Balance, December 31, 2019 $112,562
 $2,557


43
BENEFIT STREET PARTNERS REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2020
(Unaudited)

The fair value of cash and cash equivalents and restricted cash are measured using observable quoted market prices, or Level I inputs and their carrying value approximates their fair value. The fair value of borrowings under repurchase agreements approximate their carrying value on the consolidated balance sheets due to their short-term nature, and are measured using Level II inputs.













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BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2017
(Unaudited)

Financial Instruments Not Measured at Fair Value
The fair values of the Company's commercial mortgage loans, held-for-investmentheld for investment and collateralized loan obligations, which are not reported at fair value on the consolidated balance sheets are reported below as of September 30, 2017March 31, 2020 and December 31, 2016 (in2019 (dollars in thousands):
   Level Carrying Amount Fair Value
September 30, 2017       
Commercial mortgage loans, held-for-investment (1)
Asset III $1,287,065
 $1,281,114
Collateralized loan obligationLiability II 515,500
 583,046
December 31, 2016       
Commercial mortgage loans, held-for-investment (1)
Asset III 1,048,737
 1,029,756
Collateralized loan obligationLiability II 278,450
 282,001
   Level 
Carrying Amount (1)(2)
 Fair Value
March 31, 2020       
Commercial mortgage loans, held for investmentAsset III $2,672,300
 $2,673,611
Collateralized loan obligationsLiability III 1,739,009
 1,610,761
Mortgage Note PayableLiability III 40,167
 40,167
December 31, 2019      
Commercial mortgage loans, held for investmentAsset III $2,762,963
 $2,784,650
Collateralized loan obligationsLiability III 1,803,185
 1,822,386
Mortgage Note PayableLiability III 29,167
 29,167
________________________
1(1) The carrying value is gross of $2.0$21.7 million and $2.2$0.9 million of allowance for loancredit losses as of September 30, 2017March 31, 2020 and December 31, 2016,2019, respectively.
(2) The carrying value is inclusive of $9.6 million of commercial mortgage loans, held-for-sale as of March 31, 2020.
The fair value of the commercial mortgage loans, held for investment is estimated using a discounted cash flow analysis, based on the Advisor's experience with similar types of investments. The Company received broker quotes for each trancheestimates the fair value of the CLOs issued in 2015collateralized loan obligations using external broker quotes. The fair value of the other financing and 2017.loan participation-commercial mortgage loans is generally estimated using a discounted cash flow analysis.


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Table of Contents
BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2017
(Unaudited)

Note 1113 - Derivative Instruments
The Company uses derivative instruments primarily to economically manage the fair value variability of fixed rate assets caused by interest rate fluctuations and overall portfolio market risk.

As of September 30, 2017,March 31, 2020, the net premiums received on derivative instrument assets were $0.6$0.7 million.

The following derivative instruments were outstanding as of September 30, 2017 ($March 31, 2020 and December 31, 2019 (dollars in thousands):
      
   Fair Value     Fair Value
Contract type Notional 
Assets (1)
Liabilities (1)
 Net Notional 
Assets 
 Liabilities
Credit derivatives $66,000
 $206
$1,003
 $(797)
March 31, 2020      
Credit default swaps $55,000
 $1,173
 $—
Interest rate swaps 67,489
 —
 4,016
Treasury note futures 69,676
 754
—
 754
 30,000
 —
 1,512
Total $135,676
 $960
$1,003
 $(43) $152,489
 $1,173
 $5,528
            
(1) Shown as derivative instruments, at fair value, in the accompanying consolidated balance sheets.
      
December 31, 2019      
Credit default swaps $94,300
 $59
 $1,581
Interest rate swaps 42,546
 325
 —
Treasury note futures 74,000
 735
 —
Total $210,846
 $1,119
 $1,581

The Company did not have any derivative instruments outstanding as of December
44
BENEFIT STREET PARTNERS REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2016.2020
(Unaudited)

The following tablestable indicates the net realized and unrealized losses on derivatives, by primary underlying risk exposure, as included in loss on derivative instruments in the consolidated statements of operations for the three and nine months ended September 30, 2017. The Company did not have any net realizedMarch 31, 2020 and unrealized gain or loss on derivatives during the three and nine months ended September 30, 2016.

March 31, 2019:
Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017
Unrealized
Gain (Loss)
 
Realized
Gain (Loss)
 Total 
Unrealized
Gain (Loss)
 
Realized
Gain (Loss)
 TotalThree Months Ended March 31, 2020 Three Months Ended March 31, 2019
Contract type           
Unrealized
(Gain)/Loss
 
Realized
(Gain)/Loss
 
Unrealized
(Gain)/Loss
 
Realized
(Gain)/Loss
Credit derivatives$(171) $(18) $(189) $(171) $(18) $(189)
Credit default swaps$(1,752) $61
 $112
 $1,378
Interest rate swaps4,340
 2,946
 1,197
 (415)
Treasury note futures754
 —
 754
 754
 —
 754
2,248
 3,627
 (243) 350
Options—
 35
   145
Total$583
 $(18) $565
 $583
 $(18) $565
$4,836
 $6,669
 $1,066
 $1,458



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Table of Contents
BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2017
(Unaudited)

Note 1214 - Offsetting Assets and Liabilities
The Company's consolidated balance sheets usesused a gross presentation of derivatives and repurchase agreements and collateral pledged. Master netting agreements that the Company has entered into with its derivative and repurchase agreement counterparties allow for netting of the same transaction, in the same currency, on the same date.  Assets, liabilities, and collateral subject to master netting agreements as of September 30, 2017 and December 31, 2016 are disclosed in the tables above. The Company does not present its derivative and repurchase agreements net on the consolidated balance sheets as it has elected gross presentation.
The table below provides a gross presentation, the effects of offsetting and a net presentation of the Company's derivative instruments and repurchase agreements and derivatives within the scope of ASC 210-20, Balance Sheet—Offsetting, as of September 30, 2017March 31, 2020 and December 31, 2016, (in2019 (dollars in thousands):
        Gross Amounts Not Offset on the Balance Sheet  
  Gross Amounts of Recognized Assets
Gross Amounts Offset in the Balance Sheet
Net Amount of Assets Presented in the Balance Sheet
Financial Instruments
Cash Collateral Received Net Amount
September 30, 2017            
Derivatives $960
 $—
 $960
 $—
 $—
 $960
Total $960

$—

$960

$—

$—
 $960
             
        Gross Amounts Not Offset on the Balance Sheet  
  Gross Amounts of Recognized Liabilities Gross Amounts Offset on the Balance Sheet Net Amount of Liabilities Presented on the Balance Sheet 
Financial Instruments as Collateral Pledged (*)
 Cash Collateral Pledged Net Amount
September 30, 2017            
Repurchase agreements, commercial mortgage loans $319,385
 $—
 $319,385
 $553,364
 $5,005
 $—
Repurchase agreements - real estate securities 39,035
 —
 39,035
 55,764
 389
 —
Derivatives 1,003
 —
 1,003
 —
 1,436
 —
Total $359,423
—
$—

$359,423

$609,128
—
$6,830
—
$—
             
             
        Gross Amounts Not Offset on the Balance Sheet  
December 31, 2016 Gross Amounts of Recognized Liabilities Gross Amounts Offset on the Balance Sheet Net Amount of Liabilities Presented on the Balance Sheet Financial Instruments as Collateral Pledged (*) Cash Collateral Pledged Net Amount
Repurchase agreements, commercial mortgage loans $257,664
 $—
 $257,664
 $399,914
 $5,000
 $—
Real estate securities 66,639
 —
 66,639
 102,358
 21
 —
Total $324,303
—
$—
—
$324,303
—
$502,272
—
$5,021
—
$—
       Gross Amounts Not Offset on the Balance Sheet 
Assets Gross Amounts of Recognized Assets Gross Amounts Offset on the Balance Sheet Net Amount of Assets Presented on the Balance Sheet Financial Instruments 
Cash Collateral(1)
 Net Amount
March 31, 2020            
Derivative instruments, at fair value $1,173
 $—
 $1,173
 $—
 $—
 $1,173
December 31, 2019            
Derivative instruments, at fair value $1,119
 $—
 $1,119
 $—
 $10,895
 $—
* Includes $55.8 million and $53.3 million Tranche C of Company issued CLO held by the Company, which eliminates

45
BENEFIT STREET PARTNERS REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2020
(Unaudited)

        Gross Amounts Not Offset on the Balance Sheet  
Liabilities Gross Amounts of Recognized Liabilities Gross Amounts Offset on the Balance Sheet Net Amount of Liabilities Presented on the Balance Sheet Financial Instruments 
Cash Collateral(1)
 Net Amount
March 31, 2020            
Repurchase agreements - commercial mortgage loans $234,524
 $—
 $234,524
 $370,760
 $5,015
 $—
Repurchase agreements - real estate securities $496,880
 $—
 $496,880
 $609,776
 $76,157
 $—
Derivative instruments, at fair value $5,528
 $—
 $5,528
 
 $8,584
 $—
December 31, 2019            
Repurchase agreements - commercial mortgage loans $252,543
 $—
 $252,543
 $394,229
 $5,011
 $—
Repurchase agreements - real estate securities $394,359
 $—
 $394,359
 $455,301
 $1,657
 $—
Derivative instruments, at fair value $1,581
 $—
 $1,581
 $—
 $3,679
 $—
_______________________
(1) These cash collateral amounts are recorded within the real estate securities, at fair value line ofRestricted cash balance on the consolidated balance sheets as of September 30, 2017 and December 31, 2016, respectively.sheets.
Note 1315 - Segment Reporting
The Company has determined that it has three reportable segments based on howconducts its business through the chief operating decision maker reviews and manages the business. The threefollowing reporting segments are as follows:segments:
The real estate debt, real estate owned and other real estate investments business which is focusedfocuses on originating, acquiring and asset managing commercial real estate debt and equity investments, including first mortgage loans, subordinate mortgages, mezzanine loans and participations in such loans.

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Table of Contents
BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2017
(Unaudited)

loans and other real estate investments.
The real estate securities business focuses on investing in and asset managing commercial real estate securities primarily consisting of CMBS and may include unsecured REIT debt, CDO notes and other securities.
The commercial real estate conduit business operated through the Company's TRS, which is focused on generating superior risk-adjusted returns by originating and subsequently selling fixed-rate commercial real estate loans into the CMBS securitization market at a profit.
The real estate owned business represents real estate acquired by the Company performed a recastthrough foreclosure, deed in lieu of its results of operations for the TRS, a new line of business, and determined there to be no material changes.foreclosure, or purchase

46
BENEFIT STREET PARTNERS REALTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2020
(Unaudited)

The following table represents the Company's operations by segment for the three months ended September 30, 2017March 31, 2020 and 2016 (inMarch 31, 2019 (dollars in thousands):
Three Months Ended September 30, 2017 Total Real Estate Debt Real Estate Securities TRS
Interest income $22,195
 $21,795
 $269
 $131
Interest expense 8,845
 8,386
 409
 50
Net income (loss) 6,975
 7,588
 (22) (591)
Three Months Ended September 30, 2016        
Interest income 20,250
 18,682
 1,568
 —
Interest expense 7,317
 6,642
 675
 —
Net income 5,373
 5,265
 108
 —

The following table represents the Company's operations by segment for the nine months ended September 30, 2017 and 2016 (in thousands):
Nine Months Ended September 30, 2017 Total Real Estate Debt 
Real Estate Securities

 TRS
Interest income $61,917
 $60,435
 $1,351
 $131
Interest expense 21,990
 20,686
 1,254
 50
Net income 19,305
 19,627
 269
 (591)
Nine Months Ended September 30, 2016        
Interest income 60,763
 55,973
 4,790
 —
Interest expense 17,478
 15,443
 2,035
 —
Net income 23,653
 22,775
 878
 —

The following table represents the Company's total assets by segment as of September 30, 2017 and December 31, 2016 (in
thousands):
As of September 30, 2017 Total Real Estate Debt 
Real Estate Securities

 Conduit
Total Assets $1,521,102
 $1,437,630
 $389
 $83,083
As of December 31, 2016        
Total Assets 1,248,125
 1,198,806
 49,319
 —

Three Months Ended March 31, 2020 Total Real Estate Debt and Other Real Estate Investments Real Estate Securities TRS Real Estate Owned
Interest income $47,854
 $43,369
 $3,295
 $1,190
 $—
Revenue from real estate owned 1,629
 —
 —
 —
 1,629
Interest expense 24,492
 21,708
 1,807
 693
 284
Net income/(loss) (7,400) (1,183) 1,050
 (5,982) (1,285)
Total assets as of March 31, 2020 3,501,885
 2,775,939
 519,916
 132,694
 73,336
Three Months Ended March 31, 2019          
Interest income $46,511
 $43,634
 $507
 $2,370
 $—
Revenue from real estate owned —
 —
 —
 —
 —
Interest expense 20,366
 18,743
 498
 1,125
 —
Net income/(loss) 19,890
 14,725
 9
 5,156
 —
Total assets as of December 31, 2019 3,540,620
 2,964,233
 388,170
 131,193
 57,024
For the purposes of the table above, any expenses not associated with a specific segment have been allocated to the business segments using a percentage derived by using the sum of commercial mortgage loans net and real estate securities, at fair valueoriginated during the year as the denominator and commercial mortgage loans, held for investment, net of allowance and real estate securities,commercial mortgage loans, held-for-sale, measured at fair value as the numerators.numerator.

-31
Table of Contents
BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2017
(Unaudited)

Note 1416 - Subsequent Events
Distributions PaidThe Company has evaluated subsequent events through the filing of this Quarterly Report on Form 10-Q.
On October 2, 2017 and November 1, 2017, the Company paid monthly distributions of $3.7 million and $3.9 million, respectively, to stockholders of record during the month of September 2017 and October 2017, respectively. Pursuant to the DRIP, $1.2 million of the October 2017 distribution $1.3 million of the November 2017 distribution was used to purchase 63,693 and 65,287 shares, respectively.
Determination of Net Asset Value per Share
On November 9, 2017,April 22, 2020, the Company’s boardBoard of directorsDirectors unanimously determined an estimated NAV per shareapproved a transition in the timing of its dividend payments to holders of the Company’s common stock, of $19.02Series A Convertible Preferred Stock and Series C Convertible Preferred Stock from a monthly to a quarterly basis, effective as of September 30, 2017. The estimated NAV per share is based upon the estimated valuedate of the announcement. The Company’s assets less the Company’s liabilities as of September 30, 2017. An independent third-party valuation firm was engagedPreferred Stock will continue to value the Company’s investment portfolio. The Advisor calculated the estimated NAV per share based in part on this valuation and recommended to the board of directors the estimated NAV per share calculated by the Advisor. The valuation was performedaccrue dividends monthly in accordance with the provisionsterms of Practice Guideline 2013-01, Valuations of Publicly Registered Non-Listed REITs, issued bysuch Preferred Stock.   
Since December 2019, COVID-19 has spread globally, including to every state in the Investment Program Association in April 2013.
AsUnited States. In March 2020, the World Health Organization declared COVID-19 a resultpandemic, and subsequently, the United States declared a national emergency. The COVID-19 pandemic has had repercussions across domestic and global economies and financial markets. The global impact of the approvalCOVID-19 outbreak evolved rapidly and many governmental authorities, including state and local governments in regions in which our borrowers own properties, have reacted by instituting government restrictions, border closings, quarantines, “shelter-in-place” orders and “social distancing” guidelines which have forced many of our borrowers to suspend or significantly restrict their business activities, and has resulted in a dramatic increase in national unemployment.
The COVID-19 pandemic has had an adverse effect on our operations and the boardoperations of directorsmany of our lenders. The extent to which the COVID-19 pandemic impacts our future operating results will depend on future developments which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the estimated NAV per share as of September 30, 2017,pandemic and pursuant to the termsdirect and indirect economic effects of the DRIPpandemic and SRP, the Company (i) will offer shares pursuant to the DRIP at a purchase price of $19.02, beginning with November 2017 distributions which are reinvested in December 2017; and (ii) will repurchase shares pursuant to the SRP at a repurchase price of $19.02, subject to discounts in certain circumstances and subject to the terms and conditions of the SRP.containment measures.



Item 2.7. Management's Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis should be read in conjunction with the accompanying consolidated financial statements of Benefit Street Partners Realty Trust, Inc. Thethe notes thereto and other financial information included elsewhere in this Quarterly Report on Form 10-Q, as well as our Annual Report on Form 10-K10-K/A for the fiscal year ended December 31, 20162019 filed with the U.S. Securities and Exchange Commission (the "SEC") on March 29, 2017.19, 2020.
As used herein, the terms "we," "our" and "us" refer to Benefit Street Partners Realty Trust, Inc., a Maryland corporation, and, as required by context, to Benefit Street Partners Realty Operating Partnership, L.P., a Delaware limited partnership, which we refer to as the "OP," and to its subsidiaries. We are externally managed by Benefit Street Partners L.L.C. (our "Advisor").
The forward-looking statements contained in this Quarterly Report on Form 10-Q may include, but are not limited to, statements as to:
our business and investment strategy;
our ability to make investments in a timely manner or on acceptable terms;
the impact of the COVID-19 pandemic;
current credit market conditions and our ability to obtain long-term financing for our investments in a timely manner and on terms that are consistent with what we project when we invest;
the effect of general market, real estate market, economic and political conditions, including the recent economic slowdown and dislocation in the global credit markets;
our ability to make scheduled payments on our debt obligations;
our ability to generate sufficient cash flows to make distributions to our stockholders;
our ability to generate sufficient debt and equity capital to fund additional investments including through our ability to execute securitization transactions;
our ability to refinance our existing financing arrangements;
the degree and nature of our competition;
the availability of qualified personnel;
we may be deemed to be an investment company under the Investment Company Act of 1940, as amended (the "Investment Company Act"), and thus subject to regulation under the Investment Company Act; and
our ability to maintain our qualification as a real estate investment trust ("REIT"); and
other factors set forth under the caption "Risk Factors" in our Annual Report on Form 10-K10-K/A for the year ended December 31, 2016 and in Item 1A of Part II of this Form 10-Q for the quarter ended September 30, 2017.2019.
In addition, words such as "anticipate," "believe," "expect" and "intend" indicate a forward-looking statement, although not all forward-looking statements include these words. The forward-looking statements contained in this Quarterly Report on Form 10-Q involve risks and uncertainties. Our actual results could differ materially from those implied or expressed in the forward-looking statements for any reason.
Currently, one of the most significant factors that could cause actual outcomes to differ materially from our forward-looking statements is the potential adverse effect of the current pandemic of the novel coronavirus, or COVID-19, on the financial condition, operating results and cash flows of the Company, its borrowers, the real estate market, the global economy and the financial markets. The extent to which the COVID-19 pandemic impacts us and our borrowers will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic and the direct and indirect economic effects of the pandemic and containment measures, among others.
Our investors should not place undue reliance on these forward-looking statements. The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statement to reflect events or circumstances occurring after the date of this Quarterly Report on Form 10-Q.

Overview
We were incorporated in Maryland on November 15, 2012 and conducthave conducted our operations to qualify as a REIT for U.S. federal income tax purposes beginning with theour taxable year ended December 31, 2013. In addition, theThe Company, through certain subsidiariesa subsidiary which areis treated as taxable REIT subsidiaries (each a “TRS”),TRS, is indirectly subject to U.S. federal, state and local income taxes. On May 14, 2013, weWe commenced business operations after raising in excess of $2.0 million of equity, the amount required for us to release equity proceeds from escrow.May 2013. We are in business toprimarily originate, acquire and manage a diversified portfolio of commercial real estate debt investments secured by properties located both within and outside of the United States. We may also invest in commercial real estate securities. Commercial real estate debt investments may include first mortgage loans, subordinated mortgage loans, mezzanine loans and participations in such loans. Commercial real estate securities may include commercial mortgage-backed securities ("CMBS") , senior unsecured debtSubstantially all of publicly traded REITs, debtour business is conducted through the OP, a Delaware limited partnership. We are the sole general partner and directly or equity securitiesindirectly hold all of other publicly traded real estate companies and CDOs. the units of limited partner interests in the OP.
The Company also originates conduit loans which the Company intends to sell through its TRS into CMBS securitization transactions at a profit.
We havehas no direct employees. On September 29, 2016 we terminatedWe are managed by our advisory agreement with our former advisorAdvisor pursuant to an Amended and entered into theRestated Advisory Agreement, with our Advisor.dated January 19, 2018 (the "Advisory Agreement"). Our Advisor manages our affairs on a day-to-day basis. The Advisor receives compensation and fees for services related to the investment and management of our assets and our operations.

The Advisor, an SEC-registered investment adviser, is a credit-focused alternative asset management firm. The Advisor manages assetsfunds for institutions and high-net-worth investors across a broad range ofvarious credit funds and complementary credit strategies including high yield, levered loans, private/private / opportunistic debt, liquid credit, structured credit and commercial real estate debt. These strategies complement each other as they all leverage the sourcing, analytical, compliance, and operational capabilities that encompass the Advisor’s robust platform. On February 1, 2019, Franklin Resources, Inc. and Templeton International, Inc. (collectively, “Franklin Templeton”) acquired the Advisor (the “Transaction”). The AdvisorTransaction did not impact the terms of the Advisory Agreement and the Transaction did not result in any changes to the executive officers of the Company.
The Company invests in commercial real estate debt investments, which may include first mortgage loans, subordinated mortgage loans, mezzanine loans and participations in such loans. The Company also originates conduit loans which the Company intends to sell through its TRS into CMBS securitization transactions at a profit. The Company also owns real estate, which represents real estate acquired by the Company through foreclosure, deed in lieu of foreclosure, or purchase.
The Company also invests in commercial real estate securities. Real estate securities may include CMBS, senior unsecured debt of publicly traded REITs, debt or equity securities of other publicly traded real estate companies and CDOs.
COVID-19 Pandemic
Since December 2019, COVID-19 has spread globally, including to every state in the United States. In March 2020, the World Health Organization declared COVID-19 a pandemic, and subsequently, the United States declared a national emergency. The COVID-19 pandemic has had significant repercussions across domestic and global economies and financial markets, including the industries in which our borrowers operate. The global impact of the COVID-19 outbreak evolved rapidly and many governmental authorities, including state and local governments in regions in which our borrowers own properties, have reacted by instituting government restrictions, border closings, quarantines, “shelter-in-place” orders and “social distancing” guidelines which have forced many of our borrowers to suspend or significantly restrict their business activities, and has resulted in a dramatic increase in national unemployment.
The COVID-19 pandemic has had and is affiliatedcontinuing to have a material impact on our operations:
Impact on Operating Results. With respect to our operating results in the quarter ended March 31, 2020, the COVID-19 pandemic drove a significant increase in our allowance for credit loss provision on our securities portfolio. This was a result of deterioration in the broader capital markets and uncertainty due to COVID-19 and its expected impact on values of properties underlying our real-estate debt assets. Due primarily to changes in market conditions associated with Providence Equity Partners L.L.C.the COVID-19 pandemic, the weighted average risk rating of our loan portfolio increased from 2.1 as of December 31, 2019 to 2.3 as of March 31, 2020, and the amortized cost basis of our loans past due increased by $45.3 million over this period. Additionally, we expect a decrease in conduit loan activity in the near term.
During April 2020, we have made limited modifications to certain loans to assist borrowers during the COVID-19 pandemic, but none of these modifications qualify as troubled debt restructurings ("TDRs").
Impact on Liquidity. In March and April 2020, there were significant disruptions in the financial markets that impacted our real estate securities portfolio. This resulted in decreases in market value for these assets due to volatility and lack of liquidity. We received margin calls from certain of our lenders due to the decline in pricing, which we satisfied through the contribution of additional cash, thereby reducing our liquidity position and substantially reducing our levered returns on this portfolio of assets. In addition, many of our lenders have reduced the advance rates on our repurchase agreements, which has further adversely impacted our liquidity and reduced anticipated returns. Although the markets for these assets have recently stabilized, if they were to suffer similar disruptions as a result of the ongoing economic impacts of COVID-19 or otherwise, we could receive additional margin calls which would strain our liquidity. In addition, the financial market dislocations created by the COVID-19 pandemic have currently made financing through CDO or CLO securitizations more difficult.

The extent to which the COVID-19 pandemic impacts our future operating results and liquidity will depend on future developments which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic and the direct and indirect economic effects of the pandemic and containment measures. The inability of our borrowers to meet their loan obligations and/or borrowers filing for bankruptcy protection would reduce our cash flows, which would impact our ability to pay dividends to our stockholders. For further discussion of the potential impacts from the COVID-19 pandemic on our business, financial condition, results of operations, liquidity and our ability to make distributions to our stockholders, refer to “Risk Factors” in Part II, Item 1A of this Quarterly Report on Form 10-Q.
Estimated Per Share NAV
On November 9, 2017,12, 2019, our board of directors, upon the recommendation of the Advisor, unanimously approved and established an estimated per share net asset value (“NAV”("NAV") per share of $19.02.the Company’s common stock of$18.57. The estimated per share NAV iswas based upon the estimated value of ourthe Company’s assets less ourthe Company’s liabilities as of September 30, 20172019 (the “Valuation Date”). This valuation was performed in accordance with the provisions of Practice Guideline 2013-01, Valuations of Publicly Registered Non-Listed REITs, issued by the Investment Program Association in April 2013. We believe that there have been no material changes between2013, including the Valuation Dateuse of an independent third-party valuation firm to estimate the fair value of our commercial real estate debt investments and the date of this filing that would impact the estimated per share NAV.commercial mortgage backed securities.
With the unanimous approval of our board of directors, we engaged an independent third-party valuation firm to estimate the fair value of our loans. The valuation firm estimated the value of our loan portfolio by applying a discounted cash flow analysis to each loan to determine a range of estimated valuations. To estimate the Company’s NAV, the Advisor adjusted the loan portfolio valuation prepared by the valuation advisor by adding the amounts of cash and other tangible assets reflected on our balance sheet (as computed in accordance with GAAP) and subtracting our liabilities as reflected on our balance sheet (computed in accordance with GAAP). Based in part on these valuation ranges, the Advisor estimated that the Company’s NAV as of September 30, 2017 ranged from $18.562019 is $18.57 which falls within the valuation range of $18.07 to $19.49, with a midpoint estimated NAV of $19.02 (the “Midpoint Valuation”). $19.15.
The Advisor recommended our board of directors approve the Midpoint Valuation as our estimated per share NAV.NAV of $18.57. As with any methodology used to estimate value, the methodologies employed to estimate the NAV were based upon a number of estimates and assumptions that may not be accurate or complete. If different judgments, assumptions or opinions were used, a different estimate would likely result.
We believe that the method used to determine the estimated per share NAV of the Company’s common stock is the methodology most commonly used by public, non-listed REITs to estimate per share NAV. The estimated per share NAV does not represent the per share amount a third party would pay to acquire us, or the price at which our common stock would trade in the event we were listed on a national securities exchange. For example, the estimated per share NAV of the Company’s common stock does not reflect a liquidity discount for the fact that the shares are not currently traded on a national securities exchange and other costs that may be incurred in connection with a liquidity event. Our estimated per share NAV does not reflect the conversion of any of our Series A convertible preferred stock ("Series A Preferred Stock") or Series C convertible preferred stock (“Series C Preferred Stock,” and with the Series A Preferred Stock, the “Preferred Stock”).
The estimated per share NAV was determined at a moment in time and as of the Valuation Date and the values of our assets and liabilities will change over time as a result of changes relating to the individual loans in our portfolio as well as changes and developments in the real estate and capital markets generally, including changes in interest rates. For example, the estimated per share NAV does not reflect the significant adverse impact on our business and the value of our shares related to the COVID-19 pandemic discussed above. Stockholders should not rely on the estimated per share NAV in making a decision to buy or sell shares of our common stock.
Significant Accounting Policies and Use of Estimates
A summary of our significant accounting policies is set forth in Note 2 - Summary of Significant Accounting Policies to our consolidated financial statements included in this Quarterly Report on Form 10-Q. A full disclosure of our significant accounting polices is disclosed in our Annual Report on Form 10-K10-K/A for the year ended December 31, 2016.2019.

Portfolio
As of September 30, 2017March 31, 2020 and December 31, 2016,2019, our portfolio consisted of 73118 and 71 commercial mortgage loans, excluding commercial mortgage loans accounted for under the fair value option, and 0 and 6 investments in CMBS, respectively. The122 commercial mortgage loans, held for investment hadwith a total carrying value, net of allowance for loancredit losses, of $1,285.1$2,641.0 million and $1,046.6 million.$2,762.0 million, respectively. As of September 30, 2017March 31, 2020 and December 31, 2016, the Company's2019, our total commercial mortgage loans, held for sale, measured at fair value comprised of 48 loans with total fair value of $91.8 million and 07 loans with total fair value of $112.6 million, respectively. As of September 30, 2017March 31, 2020 and December 31, 2016, the Company's total2019, our real estate securities, available for sale, measured at fair value comprised of 29 CMBS investments had awith total fair value of $0.0$441.2 million and $49.021 CMBS investments with total fair value of $386.3 million, respectively. As of March 31, 2020 and December 31, 2019, our other real estate investments consisted of 1 investment, measured at fair value, comprised of $2.5 million and $2.6 million, respectively. As of March 31, 2020, our real estate owned portfolio comprised of 3 investments with a carrying value of $49.3 million. As of December 31, 2019, our real estate owned portfolio was comprised of 2 investments with a carrying value of $35.3 million.
For our commercial mortgage loans, excluding commercial mortgage loans accounted for under the fair value option, we currently estimate loss rates based on historical realized losses experienced in the industry and take into account current collateral and economic conditions affecting the probability or severity of losses when establishing the allowance for loancredit losses. We recorded a general allowance for loan lossescredit loss as of September 30, 2017March 31, 2020 and December 31, 20162019 in the amount of $2.0$21.7 million and $2.2$0.9 million, respectively. There were no impaired or specifically reserved
As of March 31, 2020, we wrote off a commercial mortgage loan, held for investment, with a carrying value $14.4 million in exchange for the possession of a real estate owned investment at a fair value of $14.0 million at the time of the transfer. The transfer occurred when we took possession of the property by completing a foreclosure transaction which resulted in $0.4 million of Increase/(decrease) for credit losses at the time of transfer.
As of March 31, 2020, we had two loans in the portfolio aswith unpaid contractual principal balance and carrying values of September 30, 2017$57.1 million and $45.3 million, respectively. We did not take any asset specific reserves for these loans. As of December 31, 2019, we had one loan with unpaid contractual principal balance and carrying value of $57.1 million that had interest past due for greater than 90 days.
As of March 31, 2020 and December 31, 2016.
As of September 30, 2017 and December 31, 2016,2019, our commercial mortgage loans, excluding commercial mortgage loans accounted for under the fair value option, had a weighted average coupon of 6.4%4.9% and 6.1%5.6%, and a weighted average remaining life of 1.51.6 years and 1.91.8 years, respectively. We had no CMBS as of September 30, 2017. As of March 31, 2020 and December 31, 2016,2019, our CMBS investments had a weighted average coupon of 5.8%2.8% and 3.7% and a remaining life of 3.115.6 years and 15.8 years, respectively.
As of March 31, 2020 our Real estate securities, available for sale, measured at fair value had an unrecognized unrealized loss of $67.6 million included within the consolidated statements of other comprehensive income. The deterioration in fair value of real estate securities as of March 31, 2020 can be attributed mainly to the market down-turn and volatility as a result of high unemployment and credit uncertainties related to the outbreak of COVID-19.


The following charts summarize our commercial mortgage loans, excluding commercial mortgage loans, held-for-sale, measured at fair value and CMBS as a percentage of par value,held for investment, by the collateral type, geographical region and coupon rate type as of September 30, 2017March 31, 2020 and December 31, 2016:2019:
chart-04b080afd68655daad2.jpgchart-db36cafeb7a551cab75.jpg
chart-37f0b865266d59218f7.jpgchart-00310417f619559a9e1.jpg

chart-b6111f57127053989e6.jpgchart-62dac3e622e358f4a25.jpgchart-ef70977dfe7f5995843.jpgchart-0e20dd7b367557b6aa9.jpg



chart-b7e37181c2b85a1a899.jpgchart-76c8ff1a35b25920b6a.jpg


chart-06f6af563c05542e8eb.jpgchart-202b0f41c62551ed8fd.jpg

An investments region classification is defined according to the below map below based on the location of investments'investments secured property.
map.jpgusamapregions22july2015a17.jpg


The following charts showshow the par value by contractual maturity year for the commercial mortgage loans, held-for-investmentheld for investments in our portfolio excluding loans held in our TRS segment as of September 30, 2017March 31, 2020 and December 31, 2016.2019:
chart-098340e0e44a5c7a92b.jpg

chart-10c38a37ad51534da88.jpg
chart-5401501b616754279d6.jpg

chart-82e4f5def8335a4bb4f.jpg

The following table shows selected data from our commercial mortgage loans, portfolio, excluding commercial mortgage loans accountedheld for under the fair value optioninvestment in our portfolio as of September 30, 2017 (inMarch 31, 2020 (dollars in thousands):
Loan TypeProperty TypePar Value
Interest Rate (1)
Effective Yield
Loan to Value (2)
Senior 1 Office$31,2501M LIBOR + 4.50%5.7%75.0%
Senior 2 Retail9,4501M LIBOR + 4.90%6.1%69.2%
Senior 3 Hospitality4,4231M LIBOR + 5.50%6.7%55.3%
Senior 4 Retail11,8001M LIBOR + 4.75%6.0%79.4%
Senior 5 Office33,7341M LIBOR + 4.65%5.9%80.0%
Senior 6 Office42,4811M LIBOR + 5.25%6.5%75.0%
Senior 7 Office13,4401M LIBOR + 5.00%6.2%75.0%
Senior 8 Office30,4501M LIBOR + 4.60%5.8%65.0%
Senior 9 Retail11,6841M LIBOR + 4.50%5.7%74.8%
Senior 10 Multifamily14,7751M LIBOR + 5.00%6.2%76.7%
Senior 11 Retail10,7451M LIBOR + 5.25%6.5%80.0%
Senior 12 Hospitality16,8001M LIBOR + 4.90%6.1%74.0%
Senior 13 Multifamily26,4101M LIBOR + 4.25%5.5%79.7%
Senior 14 Multifamily14,9171M LIBOR + 4.50%5.7%76.0%
Senior 15 Retail14,6001M LIBOR + 4.25%5.5%65.0%
Senior 16 Retail27,2491M LIBOR + 4.75%6.0%67.4%
Senior 17 Office9,8441M LIBOR + 4.65%5.9%70.8%
Senior 18 Industrial19,5531M LIBOR + 4.25%5.5%68.0%
Senior 19 Multifamily18,9411M LIBOR + 4.20%5.4%76.4%
Senior 20 Hospitality10,3501M LIBOR + 5.50%6.7%69.9%
Senior 21 Hospitality15,3751M LIBOR + 5.30%6.5%73.5%
Senior 22 Mixed Use45,2351M LIBOR + 5.50%6.7%72.6%
Senior 23 Retail7,5001M LIBOR + 5.00%6.2%59.0%
Senior 24 Retail4,7251M LIBOR + 5.50%6.7%72.0%
Senior 25 Multifamily44,5951M LIBOR + 4.25%5.5%77.0%
Senior 26 Multifamily18,0751M LIBOR + 4.50%5.7%75.0%
Senior 27 Office14,0401M LIBOR + 4.75%6.0%74.4%
Senior 28 Multifamily24,3871M LIBOR + 4.25%5.5%69.6%
TypeProperty TypePar Value
Interest Rate (1)
Effective Yield
Loan to Value (2)
Senior Debt 1Retail$9,4501 month LIBOR + 4.50%5.5%69.2%
Senior Debt 2Office10,7001 month LIBOR + 4.65%5.6%70.8%
Senior Debt 3Industrial33,6551 month LIBOR + 4.00%5.0%65.0%
Senior Debt 4Mixed Use12,9531 month LIBOR + 5.00%6.0%73.3%
Senior Debt 5Office14,0801 month LIBOR + 4.45%5.4%64.2%
Senior Debt 6Office10,5061 month LIBOR + 6.00%7.0%74.0%
Senior Debt 7Multifamily37,8121 month LIBOR + 3.35%4.3%76.0%
Senior Debt 8Office27,5741 month LIBOR + 4.15%5.1%69.5%
Senior Debt 9Multifamily34,8751 month LIBOR + 3.75%4.7%71.2%
Senior Debt 10Hospitality10,6001 month LIBOR + 5.00%6.0%61.6%
Senior Debt 11Hospitality5,9211 month LIBOR + 3.50%4.5%77.0%
Senior Debt 12Multifamily18,9851 month LIBOR + 3.62%4.6%69.5%
Senior Debt 13Hospitality57,0751 month LIBOR + 5.19%6.2%51.8%
Senior Debt 14Multifamily65,0361 month LIBOR + 4.50%5.5%22.4%
Senior Debt 15Hospitality10,2501 month LIBOR + 5.25%6.2%60.7%
Senior Debt 16Hospitality23,0001 month LIBOR + 4.66%5.7%48.1%
Senior Debt 17Multifamily19,2801 month LIBOR + 3.60%4.6%80.5%
Senior Debt 18Office24,4261 month LIBOR + 4.65%5.6%56.4%
Senior Debt 19Hospitality21,0001 month LIBOR + 4.00%5.0%54.8%
Senior Debt 20Multifamily20,7411 month LIBOR + 4.25%5.2%75.0%
Senior Debt 21Multifamily42,0001 month LIBOR + 3.70%4.7%63.7%
Senior Debt 22Hospitality28,2721 month LIBOR + 4.00%5.0%68.0%
Senior Debt 23Hospitality22,0181 month LIBOR + 4.40%5.4%72.7%
Senior Debt 24Multifamily34,7881 month LIBOR + 3.00%4.0%83.6%
Senior Debt 25Self Storage4,1201 month LIBOR + 4.05%5.0%45.5%
Senior Debt 26Self Storage6,4961 month LIBOR + 4.05%5.0%55.8%
Senior Debt 27Self Storage7,6061 month LIBOR + 4.05%5.0%57.6%
Senior Debt 28Self Storage2,4001 month LIBOR + 4.05%5.0%37.6%
Senior Debt 29Self Storage6,3101 month LIBOR + 5.05%6.0%59.1%
Senior Debt 30Multifamily22,7751 month LIBOR + 3.15%4.1%79.7%
Senior Debt 31Multifamily11,5901 month LIBOR + 3.75%4.7%85.9%
Senior Debt 32Multifamily66,0001 month LIBOR + 3.75%4.7%76.8%
Senior Debt 33Multifamily17,2501 month LIBOR + 3.95%4.9%70.0%
Senior Debt 34Hospitality22,3551 month LIBOR + 3.50%4.5%68.8%
Senior Debt 35Mixed Use52,0881 month LIBOR + 4.87%5.9%49.0%
Senior Debt 36Multifamily12,0071 month LIBOR + 3.50%4.5%74.6%
Senior Debt 37Multifamily18,0001 month LIBOR + 3.30%4.3%83.1%
Senior Debt 38Office22,0001 month LIBOR + 3.75%4.7%70.0%
Senior Debt 39Office45,2591 month LIBOR + 4.23%5.2%59.6%
Senior Debt 40Self Storage6,6001 month LIBOR + 6.00%7.0%58.9%
Senior Debt 41Multifamily7,2501 month LIBOR + 4.00%5.0%75.6%
Senior Debt 42Multifamily116,5741 month LIBOR + 3.10%4.1%79.1%
Senior Debt 43Office13,5511 month LIBOR + 3.40%4.4%67.5%
Senior Debt 44Retail29,5006.25%6.3%68.5%
Senior Debt 45Multifamily25,5001 month LIBOR + 3.50%4.5%73.3%
Senior Debt 46Self Storage12,1251 month LIBOR + 5.50%6.5%68.1%
Senior Debt 47Office38,0671 month LIBOR + 3.74%4.7%62.4%
Senior Debt 48Multifamily15,3031 month LIBOR + 3.15%4.1%80.3%
Senior Debt 49Multifamily21,6751 month LIBOR + 3.40%4.4%80.5%
Senior Debt 50Multifamily29,9001 month LIBOR + 3.35%4.3%73.0%
Senior Debt 51Multifamily39,6611 month LIBOR + 3.10%4.1%75.5%
Senior Debt 52Self Storage17,4001 month LIBOR + 4.00%5.0%69.5%
Senior Debt 53Multifamily10,0201 month LIBOR + 3.45%4.4%76.8%

Loan TypeProperty TypePar Value
Interest Rate (1)
Effective Yield
Loan to Value (2)
Senior 29 Multifamily18,1461M LIBOR + 3.85%5.1%76.8%
Senior 30 Multifamily5,5191M LIBOR + 3.95%5.2%77.5%
Senior 31 Multifamily13,1201M LIBOR + 3.95%5.2%78.2%
Senior 32 Multifamily5,8941M LIBOR + 4.05%5.3%80.0%
Senior 33 Industrial33,6551M LIBOR + 4.00%5.2%65.0%
Senior 34 Office12,0001M LIBOR + 4.75%6.0%54.1%
Senior 35 Office35,0001M LIBOR + 5.00%6.2%79.0%
Senior 36 Office19,9791M LIBOR + 4.55%5.8%70.0%
Senior 37 Office29,0061M LIBOR + 4.25%5.5%73.3%
Senior 38 Office15,0301M LIBOR + 5.35%6.6%47.1%
Senior 39 Multifamily14,0001M LIBOR + 5.00%6.2%56.3%
Senior 40 Office16,3001M LIBOR + 6.00%7.2%74.8%
Senior 41 Retail13,7001M LIBOR + 4.75%6.0%62.6%
Senior 42 Retail28,5001M LIBOR + 4.73%6.0%73.1%
Senior 43 Retail12,7001M LIBOR + 5.00%6.2%73.3%
Senior 44 Multifamily23,1501M LIBOR + 5.00%6.2%71.7%
Senior 45 Multifamily45,1031M LIBOR + 6.75%8.0%83.4%
Senior 46 Retail15,7501M LIBOR + 5.25%6.5%70.5%
Senior 47 Retail25,0001M LIBOR + 4.40%5.6%71.4%
Senior 48 Multifamily13,9441M LIBOR + 7.10%8.3%76.4%
Senior 49 Hospitality12,6001M LIBOR + 5.50%6.7%61.6%
Senior 50 Hospitality11,7501M LIBOR + 5.50%6.7%71.2%
Senior 51 Retail20,4501M LIBOR + 5.00%6.2%60.9%
Senior 52 Multifamily26,0001M LIBOR + 7.25%8.5%69.7%
Senior 53 Hospitality14,9001M LIBOR + 6.25%7.5%69.0%
Senior 54 Office11,5801M LIBOR + 4.45%5.7%65.0%
Senior 55 Office9,7501M LIBOR + 5.50%6.7%74.0%
Senior 56 Multifamily39,7001M LIBOR + 5.50%6.7%76.0%
Senior 57 Multifamily25,5001M LIBOR + 4.85%6.1%83.1%
Senior 58 Retail7,5001M LIBOR + 5.25%6.5%70.5%
Senior 59 Office62,0401M LIBOR + 4.50%5.7%69.2%
Senior 60 Multifamily38,7751M LIBOR + 4.50%5.7%73.8%
Senior 61 Hospitality8,8751M LIBOR + 6.20%7.4%67.7%
Senior 62 Office25,1201M LIBOR + 4.15%5.4%69.5%
Mezzanine 1 Multifamily4,00012.00%12.0%74.5%
Mezzanine 2 Office7,00012.00%12.0%78.3%
Mezzanine 3 Retail1,96313.00%13.0%85.0%
Mezzanine 4 Multifamily3,4809.50%9.5%84.5%
Mezzanine 5 Office5,0663M LIBOR + 10.00%11.2%79.5%
Mezzanine 6 Office10,00010.00%10.0%79.0%
Mezzanine 7 Hospitality7,14010.00%10.0%73.9%
Mezzanine 8 Hospitality3,90010.00%10.0%73.9%
Mezzanine 9 Hospitality12,51010.00%10.0%73.9%
Mezzanine 10 Hospitality8,05010.00%10.0%73.9%
Mezzanine 11 Multifamily3,0001M LIBOR + 13.00%14.2%69.7%
  $1,322,973 5.9%72.5%
TypeProperty TypePar Value
Interest Rate (1)
Effective Yield
Loan to Value (2)
Senior Debt 54Multifamily67,9801 month LIBOR + 3.45%4.4%76.3%
Senior Debt 55Land16,4001 month LIBOR + 6.00%7.0%45.7%
Senior Debt 56Hospitality8,5951 month LIBOR + 4.80%5.8%62.5%
Senior Debt 57Retail14,5001 month LIBOR + 4.75%5.7%53.5%
Senior Debt 58Industrial11,3571 month LIBOR + 3.95%4.9%66.4%
Senior Debt 59Multifamily48,5001 month LIBOR + 3.75%4.7%69.5%
Senior Debt 60Multifamily32,3881 month LIBOR + 3.25%4.2%73.8%
Senior Debt 61Multifamily54,0571 month LIBOR + 5.70%6.7%70.7%
Senior Debt 62Office7,2001 month LIBOR + 3.90%4.9%67.6%
Senior Debt 63Hospitality10,0001 month LIBOR + 4.95%5.9%69.0%
Senior Debt 64Manufactured Housing8,6111 month LIBOR + 3.90%4.9%60.3%
Senior Debt 65Hospitality9,7471 month LIBOR + 3.44%4.4%44.8%
Senior Debt 66Retail14,2501 month LIBOR + 3.95%4.9%61.2%
Senior Debt 67Hospitality21,0001 month LIBOR + 4.14%5.1%56.0%
Senior Debt 68Office21,8501 month LIBOR + 4.25%5.2%62.3%
Senior Debt 69Multifamily23,7501 month LIBOR + 3.10%4.1%73.1%
Senior Debt 70Multifamily36,2501 month LIBOR + 3.10%4.1%73.4%
Senior Debt 71Retail13,4001 month LIBOR + 4.00%5.0%84.0%
Senior Debt 72Office41,8121 month LIBOR + 3.50%4.5%71.0%
Senior Debt 73Retail8,5001 month LIBOR + 5.00%6.0%51.6%
Senior Debt 74Hospitality8,7841 month LIBOR + 4.50%5.5%68.7%
Senior Debt 75Multifamily18,1001 month LIBOR + 3.40%4.4%76.4%
Senior Debt 76Multifamily28,2501 month LIBOR + 3.40%4.4%77.2%
Senior Debt 77Hospitality19,9001 month LIBOR + 3.48%4.5%61.8%
Senior Debt 78Multifamily18,5531 month LIBOR + 3.10%4.1%67.4%
Senior Debt 79Office25,9001 month LIBOR + 3.77%4.8%68.2%
Senior Debt 80Hospitality17,8641 month LIBOR + 3.75%4.7%62.6%
Senior Debt 81Hospitality15,5001 month LIBOR + 4.00%5.0%56.4%
Senior Debt 82Hospitality5,2501 month LIBOR + 4.25%5.2%47.7%
Senior Debt 83Hospitality12,4601 month LIBOR + 4.45%5.4%62.9%
Senior Debt 84Hospitality9,0001 month LIBOR + 4.50%5.5%64.0%
Senior Debt 85Retail9,4001 month LIBOR + 4.20%5.2%77.1%
Senior Debt 86Manufactured Housing12,2001 month LIBOR + 3.65%4.6%48.4%
Senior Debt 87Manufactured Housing24,1001 month LIBOR + 3.65%4.6%53.8%
Senior Debt 88Multifamily23,1491 month LIBOR + 2.65%3.6%75.8%
Senior Debt 89Office29,7501 month LIBOR + 3.35%4.3%54.3%
Senior Debt 90Hospitality34,8061 month LIBOR + 3.99%5.0%31.0%
Senior Debt 91Multifamily11,5901 month LIBOR + 2.65%3.6%71.6%
Senior Debt 92Multifamily34,9131 month LIBOR + 2.75%3.7%79.3%
Senior Debt 93Industrial51,5001 month LIBOR + 3.75%4.7%59.7%
Senior Debt 94Office21,8251 month LIBOR + 3.50%4.5%70.9%
Senior Debt 95Hospitality7,1001 month LIBOR + 4.00%5.0%70.3%
Senior Debt 96Industrial22,2301 month LIBOR + 3.55%4.5%69.7%
Senior Debt 97Multifamily19,5751 month LIBOR + 2.75%3.7%71.7%
Senior Debt 98Multifamily16,1001 month LIBOR + 3.75%4.7%64.9%
Senior Debt 99Multifamily26,0001 month LIBOR + 3.15%4.1%71.6%
Senior Debt 100Retail9,1201 month LIBOR + 5.25%6.2%71.8%
Senior Debt 101Multifamily25,7671 month LIBOR + 2.70%3.7%76.0%
Senior Debt 102Multifamily7,1501 month LIBOR + 4.75%5.7%75.3%
Senior Debt 103Multifamily25,0001 month LIBOR + 3.00%4.0%75.5%
Senior Debt 104Multifamily8,7861 month LIBOR + 2.80%3.8%69.2%
Senior Debt 105Office26,5001 month LIBOR + 6.00%7.0%64.9%
Senior Debt 106Multifamily12,2891 month LIBOR + 3.10%4.1%63.7%
Senior Debt 107Multifamily35,1001 month LIBOR + 3.25%4.2%70.2%
Senior Debt 108Office23,3701 month LIBOR + 3.70%4.7%65.7%

TypeProperty TypePar Value
Interest Rate (1)
Effective Yield
Loan to Value (2)
Senior Debt 109Industrial25,3501 month LIBOR + 3.50%4.5%58.1%
Senior Debt 110Multifamily11,8001 month LIBOR + 3.15%4.1%72.4%
Senior Debt 111Multifamily43,2071 month LIBOR + 5.50%6.5%43.4%
Senior Debt 112Office26,5001 month LIBOR + 2.70%3.7%71.4%
Senior Debt 113Multifamily75,1001 month LIBOR + 4.35%5.3%64.7%
Senior Debt 114Hospitality17,6895.75%5.8%52.9%
Mezzanine Loan 1Multifamily3,4809.50%9.5%84.3%
Mezzanine Loan 2Retail3,50010.00%10.0%59.7%
Mezzanine Loan 3Multifamily1,10011.01%11.0%68.4%
Mezzanine Loan 4Multifamily1,00011.00%11.0%68.9%
  $2,670,133 4.9%66.2%
________________________
(1) Our floating rate loan agreements contain the contractual obligation for the borrower to maintain an interest rate cap to protect against rising interest rates. In a simple interest rate cap, the borrower pays a premium for a notional principal amount based on a capped interest rate (the "cap rate"“cap rate”). When the floating rate exceeds the cap rate, the borrower receives a payment from the cap counterparty equal to the difference between the floating rate and the cap rate on the same notional principal amount for a specified period of time. When interest rates rise, the value of an interest rate cap will increase, thereby reducing the borrower's exposure to rising interest rates.
(2) Loan to value percentage is from metrics at origination.

The following table shows selected data from our commercial mortgage loans, held-for-sale, measured at fair value.value in our portfolio as of March 31, 2020 (dollars in thousands):
Loan TypeProperty TypePar ValueInterest RateEffective Yield
Loan to Value (1)
TRS Senior 1 Mixed Use$14,1504.41%4.4%53.4%
TRS Senior 2 Retail28,0004.34%4.3%69.5%
TRS Senior 3 Multifamily7,2004.87%4.9%49.7%
TRS Senior 4 Industrial11,6004.21%4.2%55.8%
  60,950 n/m60.8%
      
(1) Loan to value percentage is from metrics at origination.

  
n/m - not meaningful.  
      
Loan TypeProperty TypePar ValueInterest RateEffective Yield
Loan to Value (1)
TRS Senior Debt 1Industrial$23,6252.90%4.7%74.1%
TRS Senior Debt 2Multifamily30,0004.55%3.5%52.8%
TRS Senior Debt 3Multifamily11,0004.45%4.1%59.8%
TRS Senior Debt 4Retail1,8684.06%4.4%69.9%
TRS Senior Debt 5Retail17,5003.94%4.0%74.2%
TRS Senior Debt 6Manufactured Housing1,8504.25%4.1%70.6%
TRS Senior Debt 7Retail1,8254.09%4.1%48.0%
TRS Senior Debt 8Office6,0004.06%3.7%60.6%
  $93,668 4.0%64.1%
________________________
(1)Loan to value percentage is from metrics at origination.


The following table shows selected data from our real estate securities, available for sale, measured at fair value in our portfolio as of March 31, 2020 (dollars in thousands):
TypePar ValueInterest RateEffective Yield
CMBS 1$13,2501 month LIBOR + 2.95%3.9%
CMBS 211,4881 month LIBOR + 2.10%3.1%
CMBS 340,0001 month LIBOR + 2.35%3.3%
CMBS 418,5001 month LIBOR + 1.70%2.7%
CMBS 515,0001 month LIBOR + 1.37%2.4%
CMBS 613,5001 month LIBOR + 1.50%2.5%
CMBS 715,0001 month LIBOR + 1.70%2.7%
CMBS 87,0001 month LIBOR + 1.50%2.5%
CMBS 99,6001 month LIBOR + 1.90%2.9%
CMBS 1010,0001 month LIBOR + 1.75%2.7%
CMBS 118,0001 month LIBOR + 1.85%2.8%
CMBS 1213,0001 month LIBOR + 1.60%2.6%
CMBS 1332,0001 month LIBOR + 1.60%2.6%
CMBS 1424,0001 month LIBOR + 2.00%3.0%
CMBS 1550,0001 month LIBOR + 1.55%2.5%
CMBS 1626,0001 month LIBOR + 1.90%2.9%
CMBS 1715,0001 month LIBOR + 1.45%2.4%
CMBS 186,5001 month LIBOR + 1.75%2.7%
CMBS 1912,0001 month LIBOR + 2.15%3.1%
CMBS 2020,0001 month LIBOR + 1.33%2.3%
CMBS 2125,0001 month LIBOR + 1.63%2.6%
CMBS 2222,5001 month LIBOR + 1.40%2.4%
CMBS 2316,0001 month LIBOR + 1.80%2.8%
CMBS 242,0001 month LIBOR + 1.80%2.8%
CMBS 252,2001 month LIBOR + 1.40%2.4%
CMBS 2612,5001 month LIBOR + 1.75%2.7%
CMBS 2725,6651 month LIBOR + 2.15%3.1%
CMBS 2828,0001 month LIBOR + 1.34%2.3%
CMBS 2915,0001 month LIBOR + 1.63%2.6%
 $508,703 2.8%
The following table shows selected data from our other real estate investments, measured at fair value in our portfolio as of March 31, 2020 (dollars in thousands):
TypeProperty TypePar ValuePreferred Return
Preferred Equity 1Retail$2,50012.50%
  $2,500 
The following table shows selected data from our real estate owned assets in our portfolio as of March 31, 2020 (dollars in thousands):
TypeProperty TypeCarrying Value
Real Estate Owned 1Hospitality$8,198
Real Estate Owned 2Office27,108
Real Estate Owned 3Hospitality14,000
  $49,306

Results of Operations
The Company has determined that it has three reportable segments based on howComparison of the chief operating decision maker reviews and managesThree Months Ended March 31, 2020 to the business. The three reporting segments are as follows:Three Months Ended March 31, 2019
We conduct our business through the following segments:
The real estate debt business which is focusedfocuses on originating, acquiring and asset managing commercial real estate debt investments, including first mortgage loans, subordinate mortgages, mezzanine loans and participations in such loans.
The real estate securities business focuses on investing in and asset managing commercial real estate securities primarily consisting of CMBS and may include unsecured REIT debt, CDO notes and other securities.
The conduitConduit business operated through the Company's TRS, which is focused on generating superior risk-adjusted returns by originating and subsequently selling fixed-rate commercial real estate loans into the CMBS securitization market at a profit.
The real estate owned business represents real estate acquired by the Company performed a recastthrough foreclosure, deed in lieu of its results of operations for the TRS, a new line of business, and determined there to be no material changes.

Comparison of the Three Months Ended September 30,2017 to the Three Months Ended September 30, 2016foreclosure, or purchase.
Net Interest Income
Net interest income is generated on our interest-earning assets less related interest-bearing liabilities and is recorded as part of our real estate debt, and real estate securities and TRS segments.
The following table presents the average balance of interest-earning assets less related interest-bearing liabilities, associated interest income and expense and corresponding yield earned and incurred for the three months ended September 30, 2017March 31, 2020 and 2016March 31, 2019 (dollars in thousands):

 Three Months Ended September 30, Three Months Ended March 31,
 2017 2016 2020 2019
 
Average Carrying Value(1)
 
Interest Income / Expense(2)
 
WA Yield / Financing Cost(3)(4)
 
Average Carrying Value(1)
 
Interest Income / Expense(2)
 
WA Yield / Financing Cost(3)(4)
 
Average Carrying Value(1)
 
Interest Income/Expense(2)
 
WA Yield/Financing Cost(3)(4)
 
Average Carrying Value(1)
 
Interest Income/Expense(2)
 
WA Yield/Financing Cost(3)(4)
Interest-earning assets:                        
Real estate debt $1,272,914
 $21,919
 6.9% $1,127,464
 $18,682
 6.6% $2,702,936
 $43,369
 6.4% $2,325,959
 $43,634
 7.5%
Real estate conduit 100,175
 1,190
 4.8% 150,821
 2,370
 6.3%
Real estate securities 12,749
 276
 8.7% 122,264
 1,568
 5.1% 406,186
 3,295
 3.2% 41,151
 507
 4.9%
Total $1,285,663
 $22,195
 6.9% $1,249,728
 $20,250
 6.5% $3,209,297
 $47,854
 6.0% $2,517,931
 $46,511
 7.4%
Interest-bearing liabilities:                        
Repurchase agreements - commercial mortgage loans $237,017
 $2,784
 4.7% $253,860
 $4,451
 7.0%
Other financing - commercial mortgage loans 34,681
 472
 5.4% —
 —
 —%
Repurchase agreements - real estate securities 47,477
 409
 3.4% 114,086
 675
 2.4%
Repurchase Agreements - commercial mortgage loans $282,282
 $3,911
 5.5% $357,850
 $5,046
 5.6%
Other financing and loan participation - commercial mortgage loans 1,502
 18
 4.8% 9,904
 123
 5.0%
Repurchase Agreements - real estate securities 412,809
 2,572
 2.5% 52,711
 498
 3.8%
Collateralized loan obligations 523,227
 5,180
 4.0% 287,443
 2,191
 3.0% 1,776,274
 17,991
 4.1% 1,385,288
 14,583
 4.2%
Derivative instruments, at fair value —
 —
 N/A
 —
 116
 N/A
Total $842,402
 $8,845
 4.2% $655,389
 $7,317
 4.5% $2,472,867
 $24,492
 4.0% $1,805,753
 $20,366
 4.5%
Net interest income/spread   $13,350
 2.7%   $12,933
 2.0%   $23,362
 2.0%   $26,145
 2.9%
Average leverage %(5)
 65.5%     52.4%     77.1%     71.7%    
Weighted average levered yield(6)
 

 

 8.7%     7.5%     12.7%   

 14.7%
________________________
(1) Based on amortized cost for real estate debt and real estate securities and principal amount for repurchase agreements. Amounts are calculated based on daily averages for the three months ended September 30, 2017March 31, 2020 and 2016,March 31, 2019, respectively.
(2) Includes the effect of amortization of premium or accretion of discount and deferred fees.
(3) Calculated as interest income or expense divided by average carrying value.
(4) Annualized.

(5) Calculated by dividing total average interest-bearing liabilities by total average interest-earning assets.
(6) Calculated by taking the sum of (i) thedividing net interest income/spread multiplied by difference between the average leverageinterest-earning assets and (ii) the interest-earning assets.

average interest-bearing liabilities.
Interest Incomeincome
Interest income earned duringfor the three months ended September 30, 2017 was $1.9March 31, 2020 and March 31, 2019 totaled $47.9 million higher compared toand $46.5 million, respectively. As of March 31, 2020, our portfolio consisted of 118 commercial mortgage loans, 8 commercial mortgage loans, held-for-sale, measured at fair value, 29 investments in CMBS and one other real estate investment, measured at fair value. The main driver in the three months ended September 30, 2016. The increase in interest income was due to an increase in the 1 Month LIBOR, the benchmark index for our loans and an increase of $35$691.4 million in the average carrying value of our interest-earning assets. As of September 30, 2017, our loans had a total carrying value of $1,379.2 million and our CMBS investments had a fair value of $0.0 million, while as of September 30, 2016, our loans had a total carrying value of $1,120.9 million and our CMBS investments had a fair value of $57.6 million.
Interest Expenseexpense
Interest expense for the three months ended September 30, 2017 was $1.5March 31, 2020 increased to $24.5 million higher compared to theinterest expense for three months ended September 30, 2016.March 31, 2019 of $20.4 million. The increase in interest expense was due to an increase in the 1 Month LIBOR, the benchmark index for our financing lines and an increase of $187$667.1 million in the average carrying value of our interest-bearing liabilities.

Expenses from operations
Expenses from operations for the three months ended September 30, 2017March 31, 2020 and 2016March 31, 2019 were made up of the following (in(dollars in thousands):
 Three Months Ended September 30, Three months ended March 31,
 2017 2016 2020 2019
Asset management and subordinated performance fee $2,299
 $1,066
 $3,912
 $3,644
Acquisition fees and acquisition expenses 1,685
 255
Administrative services expenses 4,112
 3,963
Acquisition expenses 142
 248
Professional fees 1,348
 2,154
 2,784
 2,095
Administrative services expenses 1,480
 2,480
Real estate owned operating expenses 1,645
 —
Depreciation and amortization 588
 —
Other expenses 1,411
 686
 1,587
 896
Total expenses $8,223
 $6,641
Total expenses from operations $14,770
 $10,846
The increase in our expenses from operations was primarily related to real estate owned operating expenses and depreciation and amortization. The increase is attributable to our 3 real estate owned investments during three months ended March 31, 2020 the as compared to none during the three months ended March 31, 2019. For the three months ended September 30, 2017,March 31, 2020, we incurred approximately $1.6 million of real estate owned operating expenses; compared to $0.0 million of such expenses were primarilyfor the three months ended March 31, 2019, as there was no real estate owned at the time. Additionally, during the three months ended March 31, 2020, we incurred $0.6 million of depreciation and amortization expenses related to asset management and subordinated performance fees.real estate owned, compared to $0.0 million three months ended March 31, 2019. During the three months ended September 30, 2017March 31, 2020 and September 30, 2016,March 31, 2019, we incurred $2.3 million and $1.1 million of asset management and subordinated performance fees respectively, anof $3.9 million and $3.6 million, respectively. The increase of $1.2 million. The entire $2.3 million in the asset management and subordinated performance fee linewas primarily driven by the larger stockholders’ equity and Preferred Stock in the three months ended March 31, 2020 compared to the three months ended March 31, 2019. The increases in administrative expense reimbursement, professional fees and other expenses are due to increases in overall Company growth and origination activities.
Realized Gain/Loss on Commercial Mortgage Loans Held-for-Sale
There were no sales on commercial mortgage loans held-for-sale for the three months ended September 30, 2017 is composed of asset management fees, as there was no subordinated performance fee dueMarch 31, 2020 compared to applicable conditions not having been satisfied. The $1.1 million in the asset management and subordinated performance fee line$25.0 thousand realized loss for the three months ended September 30, 2016, is composed approximately $2.3 millionMarch 31, 2019 on the sale of asset management fees andone commercial mortgage loan held-for-sale for proceeds of $5.0 million.
Realized gain on commercial mortgage loans held-for-sale, measured at fair value at the reversal of approximately $1.3 million of subordinated performance fees.
DuringTRS for the three months ended September 30, 2017 and September 30, 2016, we incurred $1.7March 31, 2020 was $9.4 million and $0.3compared to a realized gain of $11.2 million of acquisition fees and acquisition expenses, respectively, an increase of approximately $1.4 million, primarily due to the fact we had nominal origination activity in 2016. This increase was offset by decreases in professional fees and administrative services expenses infor the three months ended September 30, 2017March 31, 2019. The $1.8 million decrease in realized gain was due to lower sales volume from the sale of fixed-rate commercial real estate loans into the CMBS securitization market during the three months ended March 31, 2020 compared to September 30, 2016, whichthe three months ended March 31, 2019. Total proceeds were primarily due$147.6 million for the three months ended March 31, 2020 compared to $183.3 million for the change made to our advisor in the third quarter of 2016.three months ended March 31, 2019.

ComparisonUnrealized Gain/Loss on Real Estate Securities Available for Sale
As of March 31, 2020 our Real estate securities, available for sale, measured at fair value had an unrecognized unrealized loss of $67.6 million included within the Nine Months Ended September 30, 2017to the Nine Months Ended September 30, 2016
Net Interest Income
Net interest income is generated on our interest-earning assets less related interest-bearing liabilities and is recorded as partconsolidated statements of our real estate debt andother comprehensive income. The deterioration in fair value of real estate securities segments.
The following table presents the average balanceas of interest-earning assets less related interest-bearing liabilities, associated interest income and expense and corresponding yield earned and incurred for the nine months ended September 30, 2017 and 2016 (dollars in thousands):

  Nine Months Ended September 30,
  2017 2016
  
Average Carrying Value(1)
 
Interest Income / Expense(2)
 
WA Yield / Financing Cost(3)(4)
 
Average Carrying Value(1)
 
Interest Income / Expense(2)
 
WA Yield / Financing Cost(3)(4)
Interest-earning assets:            
Real estate debt $1,157,015
 $60,566
 7.0% $1,133,211
 $55,973
 6.6%
Real estate securities 25,424
 1,351
 7.1% 128,474
 4,790
 5.0%
Total $1,182,439
 $61,917
 7.0% $1,261,685
 $60,763
 6.4%
Interest-bearing liabilities:            
Repurchase agreements - commercial mortgage loans $301,665
 $10,511
 4.6% $248,436
 $9,019
 4.8%
Other financing - commercial mortgage loans 17,555
 712
 5.4% —
 —
 n/a
Repurchase agreements - real estate securities 54,928
 1,254
 3.0% 119,054
 2,035
 2.3%
Collateralized loan obligations 335,683
 9,513
 3.8% 287,351
 6,424
 3.0%
Total $709,831
 $21,990
 4.1% $654,841
 $17,478
 3.6%
Net interest income/spread   $39,927
 2.9%   $43,285
 2.8%
Average leverage %(5)
 60.0%     51.9%    
Weighted average levered yield(6)
 

 

 8.7%     7.9%
________________________
(1) Based on amortized cost for real estate debt and real estate securities and principal amount for repurchase agreements. Amounts are calculated based on daily averages for nine months ended September 30, 2017 and 2016, respectively.
(2) Includes the effect of amortization of premium or accretion of discount and deferred fees.
(3) Calculated as interest income or expense divided by average carrying value.
(4) Annualized.
(5) Calculated by dividing total average interest-bearing liabilities by total average interest-earning assets.
(6) Calculated by taking the sum of (i) the net interest spread multiplied by the average leverage and (ii) the interest-earning assets.

Interest Income
Our interest income during the nine months ended September 30, 2017 was $1.2 million higher comparedMarch 31, 2020 can be attributed mainly to the same period in 2016. The increase was primarily duemarket down-turn and volatility as a result of high unemployment and credit uncertainties related to the increase in the weighted average yieldoutbreak of our portfolio. As of September 30, 2017, our loans had a carrying value of $1,379.2 million and our CMBS investments had a fair value of $0.0 million, while as of September 30, 2016, our loans had a total carrying value of $1,120.9 million and our CMBS investments had a fair value of $57.6 million.
Interest Expense
Interest expense for the nine months ended September 30, 2017 was $4.5 million higher compared to the nine months ended September 30, 2016. The increase was primarily due to the increase in the average carrying value of our interest-bearing liabilities.

Expenses
Expenses for the nine months ended September 30, 2017 and 2016 were made up of the following (in thousands):
  Nine Months Ended September 30,
  2017 2016
Asset management and subordinated performance fee $6,952
 $7,091
Acquisition fees and acquisition expenses 4,175
 635
Professional fees 3,320
 4,226
Administrative services expenses 3,285
 3,835
Other expenses 2,773
 2,092
Total expenses from operations $20,505
 $17,879
For the nine months ended September 30, 2017, expenses were primarily related to asset management fees and acquisition fees and acquisition expenses. During the nine months ended September 30, 2017 and September 30, 2016, we incurred $7.0 million and $7.1 million of asset management and subordinated performance fees, respectively, a decrease of $0.1 million. The entire $7.0 million in the asset management and subordinated performance fee line for the nine months ended September 30, 2017 is comprised of asset management fees.
During the nine months ended September 30, 2017 and September 30, 2016, we incurred $4.2 million and $0.6 million of acquisition fees and acquisition expenses, respectively, an increase of approximately $3.6 million, primarily due to the fact we had nominal origination activity in 2016. This increase was partially offset by decreases in professional fees and administrative services expenses in the nine months ended September 30, 2017 compared to September 30, 2016, which were primarily due to expenses incurred in connection with the change in our advisor in 2016.COVID-19.

Liquidity and Capital Resources
Our principal demands for cash will be acquisition costs, including the purchase price of anyfunding our loan investments, we originate or acquire,continuing debt service obligations, distributions to our stockholders and the payment of our operating and administrative expenses, continuing debt service obligations, and distributions to our stockholders. We currently believe that we have sufficient liquidity and capital resources available for all anticipated uses, including the acquisition of additional investments, required debt service and the payment of cash dividends.expenses.
We expect to use additional debt and equity financing as a source of capital. Our board of directors currently intends to operate at a leverage level of between one to three times book value of equity. However, our board of directors may change this target without shareholder approval. In addition, for the three months ended March 31, 2020, we raised an additional $10.9 million through sales of common and preferred equity to institutional and individual investors. We anticipate that adequateour debt and equity financing sources and our anticipated cash will be generated from operations will be adequate to fund our operating and administrative expenses, continuing debt service obligations and the paymentanticipated uses of distributions.capital.
In addition to our current mix of financing sources, we may also access additional forms of financings, including credit facilities, securitizations, public and private, secured and unsecured debt issuances by us or our subsidiaries, or through capital recycling initiatives whereby we sell certain assets in our portfolio and reinvest the proceeds in assets with more attractive risk-adjusted returns.

Refer to “COVID-19 Pandemic” above for information on the impact of the COVID-19 pandemic on our liquidity.
Collateralized Loan Obligations
On January 15, 2020, the Company called all of the outstanding notes issued by BSPRT 2017-FL2 Issuer, Ltd., a wholly owned indirect subsidiary of the Company. The outstanding principal of the notes on the date of the call was $21.0 million. The Company recognized all the remaining unamortized deferred financing costs of $4.5 million recorded within the Interest expense line of the consolidated statements of operations, which was a non-cash charge.
As of March 31, 2020 and December 31, 2019 the notes issued by BSPRT 2018-FL3 Issuer, Ltd. and BSPRT 2018-FL3 Co-Issuer, LLC, wholly owned indirect subsidiaries of the Company, are collateralized by interests in a pool of 42 and 41 mortgage assets having a principal balance of $579.6 million and $523.2 million, respectively (the "2018-FL3 Mortgage Assets"). The sale of the 2018-FL3 Mortgage Assets to BSPRT 2018-FL3 Issuer, Ltd. is governed by a Mortgage Asset Purchase Agreement dated as of April 5, 2018, between the Company and BSPRT 2018-FL3 Issuer, Ltd.
As of March 31, 2020 and December 31, 2019 the notes issued by BSPRT 2018-FL4 Issuer, Ltd. and BSPRT 2018-FL4 Co-Issuer, LLC, each wholly owned indirect subsidiaries of the Company, are collateralized by interests in a pool of 53 and 49 mortgage assets having a principal balance of $868.7 million and $867.9 million, respectively (the "2018-FL4 Mortgage Assets"). The sale of the 2018-FL4 Mortgage Assets to BSPRT 2018-FL4 Issuer is governed by a Mortgage Asset Purchase Agreement dated as of October 12, 2018, between the Company and BSPRT 2018-FL4 Issuer.
As of March 31, 2020 and December 31, 2019, the notes issued by BSPRT 2019-FL5 Issuer, Ltd. and BSPRT 2019-FL5 Co-Issuer, LLC, each wholly owned indirect subsidiaries of the Company, are collateralized by interests in a pool of 53 and 48 mortgage assets having a principal balance of $803.4 million and $809.4 million respectively (the "2019-FL5 Mortgage Assets"). The sale of the 2019-FL5 Mortgage Assets to BSPRT 2019-FL5 Issuer is governed by a Mortgage Asset Purchase Agreement dated as of May 30, 2019, between the Company and BSPRT 2019-FL5 Issuer.
Repurchase Agreement,Agreements, Commercial Mortgage Loans
As of September 30, 2017,March 31, 2020, we have repurchase facilities with JPMorgan Chase Bank, National Association (the "JPM Repo Facility"), Goldman Sachs Bank USA (the "GS Repo Facility"), U.S.U.S Bank National Association (the "USB Repo Facility"), Barclays Bank PLC (the "Barclays Revolver Facility" and the "Barclays Repo Facility"), Wells Fargo Bank, National Association (the "WF Repo Facility"), and Credit Suisse AG (the "CS Repo Facility" and together with JPM Repo Facility, GS Repo Facility, USB Repo Facility, WF Repo Facility, Barclays Revolver Facility and Barclays Repo Facility, the "Repo Facilities").
The JPM Repo Facility has a maturity date of June 12, 2019 plus a one-year extension at the Company's option and provides up to $300.0 million in advances. The GS Repo Facility has a maturity date of December 27, 2018, with a one-year extension at the Company’s option,Facilities are financing sources through which may be exercised upon the satisfaction of certain conditions, and provides up to $250.0 million in advances. The USB Repo Facility matures on July 15, 2020, with two one-year extensions at the option of the Company, which may be exercised upon the satisfaction of certain conditions, and provides up to $100.0 million in advances. The CS Repo Facility matures on August 30, 2018 and provides up to $250.0 million in advances. Prior to the end of each calendar quarter, the Company may requestpledge one or more mortgage loans to the financing entity in exchange for funds typically at an extensionadvance rate of between 65% to 80% of the termination date for an additional 364 days fromprincipal amount of the end of such calendar quarter subject to the satisfaction of certain conditions and approvals.mortgage loan being pledged.
We expect to use the advances from these Repo Facilities to finance the acquisition or origination of eligible loans, including first mortgage loans, subordinated mortgage loans, mezzanine loans and participation interests therein.

As of September 30, 2017 and December 31, 2016, there was $137.5 million and $257.7 million outstanding under the JPM Repo Facility, respectively. As of September 30, 2017, we had $138.0 million outstanding under the GS Repo Facility. The Company had no advances under the GS Repo Facility as of December 31, 2016. As of September 30, 2017, we had $12.3 million outstanding under the USB Repo Facility. The Company had no advances under the USB Repo Facility as of December 31, 2016. As of September 30, 2017, we had $31.6 million outstanding under the CS Repo Facility. The Company had no advances under the CS Repo Facility as of December 31, 2016.
The Company entered into the Barclays Facility on September 19, 2017.  The Barclays Facility provides for a senior secured $75 million revolving line of credit and bears interest at per annum rates equal to one of two base rates plus an applicable margin. The Barclays Facility has a maturity of September 19, 2019, subject to an extension term of one year, and provides for quarterly interest-only payments, with all principal and interest outstanding being due on the maturity date. The Barclays Facility may be prepaid from time to time and at any time, in whole or in part, without premium or penalty. The Company expects to use advances on the Barclays Facility to finance the origination of eligible loans, including first lien mortgage loans, junior mortgage loans, mezzanine loans, and participation interests therein.  As of September 30, 2017, the Company had no advances under the Barclays Facility.
The Repo Facilities generally provide that in the event of a decrease in the value of the Company'sour collateral, the lenders can demand additional collateral. Should the value of the Company’sour collateral decrease as a result of deteriorating credit quality, resulting margin calls may cause an adverse change in the Company’sour liquidity position.
The details of our Repo Facilities at March 31, 2020 and December 31, 2019 are as follows (dollars in thousands):
As of March 31, 2020          
Repurchase Facility Committed Financing Amount Outstanding 
Interest Expense(1)
 Ending Weighted Average Interest Rate Maturity
JPM Repo Facility (2)
 $300,000
 $119,604
 $1,362
 3.83% 1/30/2021
USB Repo Facility (3)
 100,000
 8,250
 152
 3.18% 6/15/2020
CS Repo Facility (4)
 200,000
 71,740
 1,349
 4.06% 9/27/2020
WF Repo Facility (5)
 175,000
 —
 396
 N/A
 11/21/2020
Barclays Revolver Facility (6)
 100,000
 4,200
 51
 5.34% 9/20/2021
Barclays Repo Facility (7)
 300,000
 30,730
 332
 3.24% 3/15/2022
Total $1,175,000
 $234,524
 $3,642
    
__________________________
(1) For the three months ended March 31, 2020. Includes amortization of deferred financing costs.
(2) On September 3, 2019, the committed financing amount was downsized from $520 million to $300 million and the maturity date was amended to January 30, 2021.
(3) Includes two one-year extensions at the option of an indirect wholly-owned subsidiary of the Company, which may be exercised upon the satisfaction of certain conditions.
(4) On March 26, 2020, the Company exercised the extension option upon the satisfaction of certain conditions, and extended the term maturity to September 27, 2020.
(5) Includes three one-year extensions at the Company’s option, which may be exercised upon the satisfaction of certain conditions.
(6) On September 13, 2019, the Company exercised the extension option, and extended the term maturity to September 20, 2021. There is one more one-year extension option available at the Company's discretion.
(7) Includes two one-year extensions at the Company's option.
As of December 31, 2019          
Repurchase Facility Committed Financing Amount Outstanding 
Interest Expense(1)
 Ending Weighted Average Interest Rate Maturity
JPM Repo Facility (2)
 $300,000
 $107,526
 $6,862
 4.51% 1/30/2021
USB Repo Facility (3)
 100,000
 —
 622
 N/A
 6/15/2020
CS Repo Facility (4)
 300,000
 87,375
 5,563
 4.84% 3/27/2020
WF Repo Facility (5)
 175,000
 24,942
 1,333
 3.65% 11/21/2020
Barclays Revolver Facility (6)
 100,000
 —
 976
 N/A
 9/20/2021
Barclays Repo Facility (7)
 300,000
 32,700
 1,260
 3.80% 3/15/2022
Total $1,275,000
 $252,543
 $16,616
    
_______________________
(1) For the twelve months ended December 31, 2019. Includes amortization of deferred financing costs.
(2) On September 3, 2019, the committed financing amount was downsized from $520 million to $300 million and the maturity date was amended to January 30, 2021.
(3) Includes two one-year extensions at the option of an indirect wholly-owned subsidiary of the Company, which may be exercised upon the satisfaction of certain conditions.
(4) On March 26, 2019, the Company exercised the extension option upon the satisfaction of certain conditions, and extended the term maturity to March 27, 2020.
(5) Includes three one-year extensions at the Company’s option, which may be exercised upon the satisfaction of certain conditions.
(6) On September 13, 2019, the Company exercised the extension option, and extended the term maturity to September 20, 2021. There is one more one-year extension option available at the Company's discretion.
(7) Includes two one-year extensions at the Company's option.

Other financing and loan participation - Commercial Mortgage Loans
WeOn March 23, 2020, the Company transferred $15.2 million of its interest in a term loan to Sterling National Bank ("SNB") via a participation agreement. The Company incurred $13.0 thousand of interest expense on SNB for the three months ended March 31, 2020.
Unsecured Debt
On March 26, 2020, the Company and certain of its subsidiaries entered into a financing arrangementmaterial amendment to an existing lending agreement with Pacific Western BankSecurity Benefit Life Insurance Company ("SBL"), secured by a pledge of equity interests in certain of the Company’s subsidiaries, for term financing (“PWB Financing”) on May 17, 2017.a total commitment of $100 million with a maturity of February 10, 2023 and a rate of one-month LIBOR + 4.5%. The PWB Financing providedamendment revised the terms of the existing SBL lending agreement, entered into in February 2020, to permit the Company to borrow under the agreement. The Company incurred $17.0 thousand of interest expense on its lending agreement with $36.2 million and is collateralized by a portfolio asset of $54.2 million. The PWB Financing initially matures on June 9, 2019, with two one-year extension option atSBL for the Company’s option.three months ended March 31, 2020. As of September 30, 2017, we had $30.5 millionMarch 31, 2020 there was no outstanding under the PWB Financingbalance.

CMBS Master Repurchase Agreements - Real Estate Securities
We have entered into various CMBS Master Repurchase Agreements ("MRAs"(“MRAs”) that allow us to sell real estate securities while providing a fixed repurchase price for the same real estate securities in the future. The repurchase contracts on each security under an MRA generally mature in 30 to 90 days and terms are adjusted for current market rates as necessary. As of September 30, 2017March 31, 2020 and December 31, 2016,2019, we entered into sixwere party to four MRAs, of which one and threetwo were in useused for each respective periods presented, described below (in(dollars in thousands):
 Amount     Weighted Average       Weighted Average
Counterparty Outstanding Accrued Interest Collateral Pledged (*) Interest Rate Days to Maturity Amount Outstanding Accrued Interest 
Collateral Pledged (1)
 Interest Rate Days to Maturity
As of September 30, 2017          
J.P. Morgan Securities LLC $39,035
 $74
 $55,764
 2.97% 6
As of March 31, 2020          
JP Morgan Securities LLC $159,879
 $595
 $202,688
 2.21% 11
Wells Fargo Securities, LLC 159,924
 955
 190,623
 2.32% 12
Barclays Capital Inc. 79,047
 365
 106,965
 2.28% 17
Citigroup Global Markets, Inc. 98,030
 653
 109,500
 2.60% 16
Total/Weighted Average $39,035
 $74
 $55,764
 2.97% 6 $496,880
 $2,568
 $609,776
 2.33% 13
                  
As of December 31, 2016         
J.P. Morgan Securities LLC $59,122
 $96
 $92,658
 2.55% 6
As of December 31, 2019         
JP Morgan Securities LLC $83,353
 $124
 $93,500
 2.53% 20
Wells Fargo Securities, LLC $178,304
 $1,199
 $209,873
 2.94% 11
Barclays Capital Inc. $40,720
 $221
 $47,475
 2.81% 23
Citigroup Global Markets, Inc. 3,879
 1
 4,850
 2.11% 26 91,982
 413
 103,453
 2.69% 19
Wells Fargo Securities, LLC
 3,638
 4
 4,850
 2.05% 13
Total/Weighted Average $66,639
 $101
 $102,358
 2.50% 8 $394,359
 $1,957
 $454,301
 2.79% 16
________________________
(*) 1Collateral includes $55.8 Includes $89.1 million and $53.3$68.5 million Tranche C of Company issued CLO notes, held by the Company, which eliminatesare eliminated within the real estate securities, at fair value line ofin the consolidated balance sheets as of September 30, 2017March 31, 2020 and December 31, 2016,2019, respectively.
The following tables summarize our Repurchase Agreements, Commercial Mortgage Loans and our MRAs for the three months ended March 31, 2020, 2019 and 2018, respectively:
 As of March 31, 2020
 Amount Outstanding Average Outstanding Balance
 Q1 Q1
Repurchase Agreements - Commercial Mortgage Loans$234,524
 $282,282
Repurchase Agreements - Real Estate Securities$496,880
 $412,809
    
 As of March 31, 2019
 Amount Outstanding Average Outstanding Balance
 Q1 Q1
Repurchase Agreements- Commercial Mortgage Loans$370,889
 $357,850
Repurchase Agreements - Real Estate Securities$22,078
 $52,711
    
 As of March 31, 2018
 Amount Outstanding Average Outstanding Balance
 Q1 Q1
Repurchase Agreements - Commercial Mortgage Loans$501,310
 $313,509
Repurchase Agreements - Real Estate Securities$—
 $19,542

The use of our warehouse lines is dependent upon a number of factors including but not limited to: origination volume, loan repayments and prepayments, our use of other financing sources such as collateralized loan obligations, our liquidity needs and types of loan assets and underlying collateral that we hold.
During the three months ended March 31, 2020, the maximum average outstanding balance was $721.04 million, of which $452.8 million was related to repurchase agreements on our commercial mortgage loans and $268.2 million for repurchase agreements on our real estate securities.
During the three months ended March 31, 2019, the maximum average outstanding balance was $473.4 million, of which $427.8 million was related to repurchase agreements on our commercial mortgage loans and $45.7 million for repurchase agreements on our real estate securities.
During the three months ended March 31, 2018, the maximum average outstanding balance was $516.9 million, all of which was related to repurchase agreements on our commercial mortgage loans.
Private Placements
Since February 2018, we have been conducting offerings of our common stock, Series A Preferred Stock, and Series C Preferred Stock in offerings exempt from the registration requirements of the Securities Act. The following table summarizes the issuance of common stock in these offerings (dollars in thousands, except share amounts):
 Total
 Shares Issued Proceeds
Balance, December 31, 201912,136,262
 $201,225
January 2020284,983
 4,762
February 2020365,051
 6,100
March 2020—
 —
Balance, March 31, 202012,786,296
 212,087
As of March 31, 2020, we had no outstanding of binding purchase commitments for common stock.

The following table summarizes the sales of Series A Preferred Stock in these offerings (dollars in thousands, except share amounts):
 Total
 Shares Issued Proceeds
Balance, December 31, 201940,496
 $202,549
January 2020—
 —
February 202014
 70
March 2020—
 —
Balance, March 31, 202040,510
 $202,619
As of March 31, 2020, we had no outstanding of binding purchase commitments for Series A Preferred Stock.
The following table summarizes the sales of Series C Preferred Stock in these offerings (dollars in thousands, except share amounts):
 Total
 Shares Issued Proceeds
Balance, December 31, 20191,400
 $7,000
January 2020—
 —
February 2020—
 —
March 2020—
 —
Balance, March 31, 20201,400
 $7,000
As of March 31, 2020, we had no outstanding of binding purchase commitments for Series C Preferred Stock.
The following tables present the activity in our Series A Preferred Stock for the periods ended March 31, 2020 and March 31, 2019, respectively (dollars in thousands, except share amounts):
Series A Preferred Stock Shares Amount
Balance, December 31, 2019 40,500
 $202,144
Issuance of Preferred Stock, net of offering cost 14
 70
Dividends paid in Preferred Stock —
 2
Offering Costs —
 (5)
Amortization of offering costs —
 24
Ending Balance, March 31, 2020 40,514
 $202,235
     
  Shares Amount
Balance, December 31, 2018 29,249
 $145,786
Issuance of Preferred Stock 2,996
 14,979
Amortization of offering costs —
 25
Ending Balance, March 31, 2019 32,245
 $160,790
The following tables present the activity in our Series C Preferred Stock for the periods ended March 31, 2020 (dollars in thousands, except share amounts):
Series C Preferred Stock Shares Amount
Balance, December 31, 2019 1,400
 $6,966
Issuance of Preferred Stock, net of offering cost —
 —
Dividends paid in Preferred Stock —
 —
Offering Costs —
 (5)
Amortization of offering costs —
 1
Ending Balance, March 31, 2020 1,400
 $6,962


Distributions
On May 13, 2013,In order to maintain its election to qualify as a REIT, the Company must currently distribute, at a minimum, an amount equal to 90% of its taxable income, without regard to the deduction for distributions paid and excluding net capital gains. The Company must distribute 100% of its taxable income (including net capital gains) to avoid paying corporate U.S. federal income taxes.
Distributions on our board of directorscommon stock are payable when authorized and declared a distribution calculated daily at a rateby our Board of $0.00565068493, which is equivalent to $2.0625 per annum, per share of common stock. In March 2016, our board of directors ratified the same distribution amount. In August 2017, our board of directors authorized and declared a distribution calculated daily at a rate of $0.00394521 per day, which is equivalent to $1.44 per annum, per share of common stock.Directors. Distribution payments are dependent on the availability of funds. The boardOur Board of directorsDirectors may changereduce the amount of distributions paid or suspend distribution payments at any time, and therefore, distributiondistributions payments are not assured.

The distribution will beDividends payable on each share of Series A and Series C Preferred Stock are generally equal to the monthly dividend that would have been paid had such share of Preferred Stock been converted to a share of common stock, except to the extent common stock dividends have been reduced below certain specified levels. To the extent dividends on Preferred Shares are not authorized and declared by our Board of Directors and paid by the fifth day followingCompany monthly, the enddividend amounts will accrue.
On April 22, 2020, the Company’s Board of each monthDirectors unanimously approved a transition in the timing of its dividend payments, if any, to stockholdersholders of record at the closeCompany’s common stock and Preferred Stock from a monthly to a quarterly basis, effective as of business each day during the prior month.date of the announcement. The Company’s Preferred Stock will continue to accrue dividends monthly in accordance with the terms of such Preferred Stock. On March 26, 2020, the Company temporarily suspended the DRIP.
The below table shows the distributions paid on shares outstanding of common stock during the ninethree months ended September 30, 2017March 31, 2020 and nine months ended September 30, 2016 (inMarch 31, 2019 (dollars in thousands):
Three months Ended March 31, 2020   
Payment Date Amount Paid in Cash  Amount Issued under DRIP
January 2, 2020$4,154
 $1,211
February 5, 20204,177
 1,210
March 2, 20203,919
 1,130
Total$12,250
 $3,551
Nine Months Ended September 30, 2017

Payment Date		   Amount Paid in Cash Amount Issued under DRIP
January 3, 2017   $3,575
 $2,007
February 1, 2017   3,560
 1,957
March 1, 2017   3,231
 1,770
April 1, 2017   3,621
 1,926
May 1, 2017   3,536
 1,846
June 1, 2017   3,692
 1,887
July 3, 2017   3,607
 1,809
August 1, 2017   3,755
 1,854
September 1, 2017   2,751
 1,293
Total   $31,328
 $16,349
Three months Ended March 31, 2019   
Payment Date Amount Paid in Cash  Amount Issued under DRIP
January 4, 2019$3,576
 $1,171
February 1, 20193,657
 1,168
March 1, 20193,333
 1,053
Total$10,566
 $3,392

Nine Months Ended September 30, 2016

Payment Date		 Amount Paid in Cash Amount Issued under DRIP
January 4, 2016   $3,225
 $2,324
February 2, 2016   3,337
 2,159
March 2, 2016   3,057
 2,099
April 1, 2016   3,342
 2,188
May 2, 2016   3,296
 2,068
June 1, 2016   3,446
 2,112
July 1, 2016   3,361
 2,034
August 3, 2016   3,423
 2,070
September 1, 2016   3,465
 2,045
Total   $29,952
 $19,099




The following table shows the sources for the payment of distributions to common stockholders for the periods presented (in(dollars in thousands):

  Three Months Ended September 30, Nine Months Ended September 30,
  2017 2016 2017 2016
Distributions:                
Cash distributions paid $10,113
   $10,249
   $31,328
   $29,952
  
Distributions reinvested 4,956
   6,149
   16,349
   19,099
  
Total distributions $15,069
   $16,398
   $47,677
   $49,051
  
Source of distribution coverage:                
Cash flows provided by operations $4,324
 28.7% $8,349
 50.9% $20,394
 42.8% $27,553
 56.2%
Available cash on hand 5,789
 38.4% 1,900
 11.6% 10,934
 22.9% 2,399
 4.9%
Common stock issued under DRIP 4,956
 32.9% 6,149
 37.5% 16,349
 34.3% 19,099
 38.9%
Total sources of distributions $15,069
 100.0% $16,398
 100.0% $47,677
 100.0% $49,051
 100.0%
Cash flows provided by operations (GAAP) $4,324
   $8,349
   $20,394
   $27,553
  
Net income (GAAP) $6,975
   $5,373
   $19,305
   $23,653
  
 Three months Ended March 31,
 2020 2019
Distributions:       
  Distributions paid In Cash$12,250
   $10,566
  
  Distributions Reinvested3,551
   3,392
  
Total Distributions$15,801
   $13,958
  
Source of Distribution Coverage:       
  Net Income/(Loss)$—
 —% $10,566
 75.7%
  Available cash on hand12,250
 77.5% —
 —%
  Common Stock Issued Under DRIP3,551
 22.5% 3,392
 24.3%
Total Sources of Distributions$15,801
 100.0% $13,958
 100.0%
Net Income/(Loss) applicable to common stock (GAAP)$(11,915)   $16,108
  
The following table compares cumulative distributions paid to cumulative net income (in accordance with GAAP) for the period from November 15, 2012 (date of inception) through September 30, 2017 (in thousands):
  For the Period from November 15, 2012 (date of inception) to September 30, 2017
Distributions paid:  
Common stockholders in cash $106,406
Common stockholders pursuant to DRIP / offering proceeds 66,773
Total distributions paid $173,179
Reconciliation of net income:  
Net interest income $157,300
Realized loss on sale of real estate securities (1,734)
Realized loss on loans held for sale (1,475)
Acquisition fees (17,283)
Other operating expenses (56,522)
Net income 80,286
Cash flows provided by operations $84,312

Cash Flows
Cash Flows for the Nine Months Ended September 30, 2017Three months ended March 31, 2020
Net cash provided by operating activities for the ninethree months ended September 30, 2017March 31, 2020 was $20.4$37.4 million. Cash inflows were primarily driven by net incomecash inflows of $19.3 million.$18.8 million related to originations of and proceeds from sales of commercial mortgage loans, measured at fair value and $48.2 million of interest proceeds received. Inflows were partially offset by the payment of $20.9 million of interest expense.
Net cash used inprovided by investing activities for the ninethree months ended September 30, 2017March 31, 2020 was $312.0$3.6 million. Cash outflows were primarily driven by the origination and acquisition of $565.1$287.6 million was due to new originationsof commercial mortgage loans and additional funding activities. This was partially offset by cash inflows of proceeds from the salepurchase of real estate securities of $34.9 million,$134.8 million. Outflows were offset by proceeds from the sale of commercial mortgage loans of $88.4 million and principal repayments of $228.8 million.$426.7 million received on commercial mortgage loans.
Net cash provided by financing activities for the ninethree months ended September 30, 2017March 31, 2020 was $245.9 million. Cash inflows were primarily driven by proceeds of $339.5 million from issuance of our CLO, BSPRT 2017-FL1. This was partially offset by cash outflows of $61.7 million net repayments on the Repo Facilities, $27.6 million from net repayment on our CMBS MRAs, the payment of $31.3 million in cash distributions paid to stockholders, $20.5 million of stock redemptions and repayments on collateralized debt obligations of $97.5 million.
Cash Flows for the Nine Months Ended September 30, 2016
Net cash provided by operating activities for the nine months ended September 30, 2016 was $27.6 million. Cash inflows were primarily driven by net income of $23.7 million.

Net cash provided by investing activities for the nine months ended September 30, 2016 was $78.8$29.0 million. Cash inflows were primarily driven by proceeds from the salenet borrowing on our CMBS MRAs of real estate securities of $70 million and principal repayments of $51.1 million,$102.5 million. Inflows were partially offset by additional fundingthe payment of $42.2$16.8 million in cash distributions to stockholders and $6.7 million of stock repurchases and repayments on CLOs of $68.9 million.
Cash Flows for the Three months ended March 31, 2019
Net cash used in financingoperating activities for the ninethree months ended September 30, 2016March 31, 2019 was $60.3$3.8 million. Cash inflows were primarily driven by $35.6an increase in net income to $19.9 million, offset by net cash outflows of $25.8 million related to originations of and proceeds from sales of commercial mortgage loans, measured at fair value.
Net cash used in investing activities for the three months ended March 31, 2019 was $115.9 million. Cash outflows were primarily driven by the origination and acquisition of $310.9 million of commercial mortgage loans and purchase of real estate securities of $40.2 million. Outflows were offset by proceeds from principal repayments of $235.6 million received on commercial mortgage loans.
Net cash provided by financing activities for the three months ended March 31, 2019 was $12.0 million. Cash inflows were primarily driven by proceeds from net borrowingsborrowing on the JPM Repo Facility offset by $44.5Facilities of $221.4 million and proceeds from net paymentborrowing on our CMBS MRAS,MRAs of $22.5 million. Inflows were partially offset by the payment of $30.0$13.8 million in cash distributions paid to stockholders and $19.0$7.2 million of stock redemptions.repurchases and repayments on CLOs of $200.4 million.
Election as a REIT
We elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code commencing with the taxable year ended December 31, 2013. As a REIT, if we meet certain organizational and operational requirements and distribute at least 90% of our "REIT taxable income" (determined before the deduction of dividends paid and excluding net capital gains) to our stockholders in a year, we will not be subject to U.S. federal income tax to the extent of the income that we distribute. Even if we qualify for taxation as a REIT, we may be subject to certain state and local taxes on our income and property, and U.S. federal income and excise taxes on our undistributed income.
Contractual Obligations and Commitments
Our contractual obligations, excluding interest obligations (as amounts are not fixed or determinable), as of March 31, 2020 are summarized as follows (dollars in thousands):
 Less than 1 year 1 to 3 years 3 to 5 years More than 5 years Total
Unfunded loan commitments (1)
$141,012
 $133,636
 $5,450
 $—
 $280,098
Maturities of lease liabilities for operating lease710
 857
 909
 38,977
 41,453
Repurchase agreements - commercial mortgage loans199,594
 34,930
 —
 —

234,524
Repurchase agreements - real estate securities496,880
 —
 —
 —
 496,880
CLOs (2)
—
 —
 —
 1,753,451

1,753,451
Mortgage Note Payable—
 —
 —
 40,167
 40,167
Total$838,196

$169,423

$6,359

$1,832,595

$2,846,573
_______________________
(1) The allocation of our unfunded loan commitments is based on the earlier of the commitment expiration date or the loan maturity date.
(2) Excludes $267.1 million and $261.4 million of CLO notes, held by the Company, which are eliminated within the collateralized loan obligation line of the consolidated balance sheets as of March 31, 2020 and December 31, 2019.

Related Party Arrangements
We entered intoBenefit Street Partners L.L.C.
Amended Advisory Agreement
Refer to “Note 11 - Related Party Transactions and Arrangements” for a summary of the Company’s Advisory Agreement with the Advisor on September 29, 2016.
The Advisor Agreement providesand amounts paid to the Advisor shall receivepursuant to the Advisory Agreement for the three months ended March 31, 2020 and 2019.
Loan Acquisitions
On February 22, 2018, the Company purchased commercial mortgage loans from an acquisition feeentity that is an affiliate of 1.0%our Advisor, for an aggregate purchase price of $27.8 million. The purchase of the principal amount funded by us to originate or acquire commercial mortgage loans and 1.0% of the anticipated net equity funded by us to acquire real estate securities; provided, however, that if and when the aggregate$27.8 million purchase price for all investments acquired after the date of the Advisory Agreement reaches $600,000,000, our obligation to pay acquisition fees to the Advisor shall terminate. We reimburse the Advisor for insourced expenses incurredwere approved by the Advisor on our behalf related to selecting, evaluating, originating and acquiring investments in an amount up to 0.5%Company’s board of directors. On April 18, 2018, the principal amount funded by us to originate or acquireCompany sold $23.3 million of these commercial mortgage loans into a CMBS securitization. The remaining $4.5 million of these commercial mortgage loans were sold as of March 31, 2020, which were previously recorded in commercial mortgage loans, held-for-sale, measured at fair value on the consolidated balance sheets.
Lending Agreement with Stockholder
On March 26, 2020, the Company and upcertain of its subsidiaries entered into a material amendment to 0.5%an existing lending agreement with SBL, an entity that also holds 14,950 of the anticipated netCompany’s outstanding shares of Series A Preferred Stock, secured by a pledge of equity funded by us to acquire real estate securities investments. In no event will the total of all acquisition fees and acquisition expenses exceed 4.5%interests in certain of the principal amount fundedCompany’s subsidiaries, for a total commitment of $100.0 million with respect to our total portfolio including subsequent funding to investments in our portfolio. In September 2017,a maturity of February 10, 2023 and a rate of one-month LIBOR + 4.5%. The amendment revised the Company's aggregate purchase price for all investments acquired after the dateterms of the Advisory Agreement reached $600,000,000, and therefore we will no longer be obligatedexisting SBL lending agreement, entered into in February 2020, to paypermit the Advisor acquisition fees in connection with acquisitions subsequentCompany to that date.
We payborrow under the Advisor, or its affiliates, a monthly asset management fee equal to one-twelfthagreement. The Company incurred $17 thousand of 1.5% of stockholder’s equity as calculated pursuant to the Advisory Agreement. We will pay the Advisor, an annual subordinated performance fee calculatedinterest expense on the basis of total return to stockholders, payable monthly in arrears, such thatlending agreement with SBL for any year in which total return on stockholders’ capital exceeds 6.0% per annum, the Advisor will be entitled to 15.0% of the excess total return; provided that in no event will the annual subordinated performance fee payable to the Advisor exceed 10.0% of the aggregate total return for such year. We will reimburse the Advisor for expenses incurred related to administrative services such as accounting, legal and other services in accordance with the advisory agreement.
Total Costs Incurred Due to Related Party Arrangements
The table below shows the costs incurred due to arrangements with our Advisor (with respect to the ninethree months ended September 30, 2017) and the Former Advisor and its affiliates and the Advisor (with respect to the nine months ended September 30, 2016) during the three and nine months ended September 30, 2017 and 2016 and the associated payable asMarch 31, 2020. As of September 30, 2017 and DecemberMarch 31, 2016 (in thousands). Of the amounts included in the table below, $26.4 thousand and $28.4 thousand for three and nine months ended September 30, 2016, respectively, for asset management fees and acquisition fees and expenses, were the only amounts payable to the Advisor.
See Note 9 - Related Party Transactions and Arrangements for further detail.
  Three Months Ended September 30, Nine Months Ended September 30, Payable as of
  20172016 2017 2016 September 30, 2017 December 31, 2016
Total compensation and reimbursement for services provided by the Former Advisor, its affiliates, entities under common control with the Former Advisor and the Former Dealer Manager

 —
—
 —
 —
 480
 480
Acquisition fees and expenses(1)
 3,014
255
 8,968
 635
 212
 —
Administrative services expenses 1,480
2,480
 3,285
 3,835
 1,480
 1,000
Advisory and investment banking fee —
—
 —
 6
 —
 —
Asset management and subordinated performance fee 2,299
1,066
 6,952
 7,091
 2,299
 2,439
Other related party expenses 87
6
 183
 56
 112
 145
Total $6,880
$3,807
 $19,388
 $11,623
 $4,583
 $4,064
________________________
1 Includes amortization of capitalized acquisition fees and expenses.2020 there was no outstanding balance.

The payables as of September 30, 2017 and December 31, 2016 in the table above are included in Due to affiliates on our consolidated balance sheets.
Off Balance Sheet Arrangements
We currently have no off balance sheet arrangements as of September 30, 2017March 31, 2020 and through the date of the filing of this Form 10-Q.
Non-GAAP Financial Measures
Funds from Operations and Modified Funds from Operations
Due to certain unique operating characteristics of real estate companies, as discussed below, the National Association of Real Estate Investment Trusts ("NAREIT") and the Investment Program Association ("IPA") industry trade groups, have each promulgated measures respectively known as funds from operations ("FFO") and modified funds from operations ("MFFO"), which we believe to be appropriate supplemental measures to reflect the operating performance of a REIT. The use of FFO and MFFO is recommended by the REIT industry as supplemental performance measures. However, FFO and MFFO are not equivalentssubstitutes to our net income or loss as determined under generally accepted accounting principles ("GAAP"). net income or loss. We believe our presentations of FFO and MFFO assist investors in analyzing and comparing our operating and financial performance between reporting periods.
We define FFO, a non-GAAP measure, consistent with the standards established by the White Paper on FFO approved by the Board of Governors of NAREIT as revised in February 2004 (the "White Paper"). The White Paper defines FFO as net income or loss computed in accordance with GAAP, excluding gains or losses from sales of depreciable property, property and asset impairment write-downs, real estate depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect FFO.on the same basis. Our business plan is to operate as a mortgage REIT with our portfolio consisting of commercial mortgage loan investments and investments in real estate securities. We will typically have no FFO adjustments to our net income or loss computed in accordance with GAAP as a result of operating as a mortgage REIT. Although we have the ability to acquire real property, we have not acquired any at this time and as such have not had any FFO adjustments to our net income or loss computed in accordance with GAAP.
Publicly registered, non-listed REITs typically operate differently from exchange traded REITs because they generally have a limited life followed by a liquidity event or other targeted exit strategy. Non-listed REITs typically have a significant amount of acquisition activity and are substantially more dynamic during their initial years of investment and operation as compared to later years when the proceeds from their continuous public offering have been fully invested and when we are seeking to implement a liquidity event or other exit strategy. However, it is likely that we will make investments past the acquisition stage, albeit at a substantially lower level.
The origination and acquisition of debt investments is a key operating feature of our business plan that results in the generation of income and cash flows in order to make distributions to stockholders. Acquisition fees paid to our Advisor and acquisition expenses reimbursed to our Advisor in connection with the origination and acquisition of debt investments are evaluated in accordance with GAAP to determine if they should be expensed in the period incurred or capitalized and amortized over the life of the investment. Acquisition fees and acquisition expenses that are deemed to be expensed in the period incurred are included in the computation of net income or loss from operations. The amortization of acquisition fees and acquisition expenses that are able to be capitalized are included in the computation of net income or loss from operations. All such acquisition fees and acquisition expenses are paid in cash when incurred that would otherwise be available to distribute to our stockholders. When proceeds from our equity offerings have not been sufficient to fund the payment of acquisition fees and the reimbursement of acquisition expenses to our Former Advisor or Advisor, such fees and expenses have been paid from other sources, including financings, operating cash flow, net proceeds from the sale of investments or from other cash flows. We believe that acquisition fees and acquisition expenses incurred by us negatively impact our operating performance during the period in which such investments are originated or acquired by reducing cash flows and therefore the potential distributions to stockholders.
We define MFFO, a non-GAAP measure, consistent with the IPA's Guideline 2010 - 01, Supplemental Performance Measure for Publicly Registered, Non-Listed REITs: Modified Funds from Operations (the "Practice Guideline") issued by the IPA in November 2010. We define MFFO as FFO further adjusted for the following items, as applicable: acquisition fees (to the extent reflected in net income or loss from operations in the current period);fees; accretion of discounts and amortization of premiums and other loan expenses on debt investments; fair value adjustments on real estate related investments such as commercial real estate securities or derivative investments included in net income; impairments of real estate related investments, gains or losses included in net income from the extinguishment or sale of debt, hedges, foreign exchange, derivatives or securities holdings where trading of such holdings is not a fundamental attribute of the business plan, unrealized gains or losses from fair value adjustments on real estate securities, including commercial mortgage backed securities and other securities, interest rate swaps and other derivatives not deemed to be hedges and foreign exchanges holdings; unrealized gains or losses resulting from consolidation from, or deconsolidation to, equity accounting, and after adjustments for consolidated and unconsolidated partnerships and joint ventures, with such adjustments calculated to reflect MFFO on the same basis. The accretion of discounts and amortization of premiums and other loan expenses on debt investments, gains and losses on hedges,

foreign exchange, derivatives or securities holdings, unrealized gains and losses resulting from consolidations, as well as other listed cash flow adjustments are adjustments made to net income in calculating the cash flows provided by operating activities and, in some cases, reflect gains or losses which are unrealized and may not ultimately be realized. While we will be responsible for managing interest rate, hedge and foreign exchange risk, we expect to retain an outside consultant to review all our hedging agreements. Inasmuch as interest rate hedges are not a fundamental part of our operations, we believe it is appropriate to exclude such gains and losses in calculating MFFO, as such gains and losses are not reflective of our core operations.
Our MFFO calculation excludes impairments of real estate related investments, including loans. We assess the credit quality of our investments and adequacy of loancredit loss reserves on a quarterly basis, or more frequently as necessary. For loans classified as held-for-investment, we establish and maintain a general allowance for loancredit losses inherent in our portfolio at the reporting date and, where appropriate, a specific allowance for loancredit losses for loans we have determined to be impaired at the reporting date. An individual loan is considered impaired when it is deemed probable that we will not be able to collect all amounts due according to the contractual terms of the loan. Real estate related securities are evaluated for other-than-temporary impairment whenwhich have experienced a decline in the fair value below their amortized cost basis (i.e., impairment) are evaluated each reporting period to determine whether the decline in fair value is due to credit-related factors. Credit-related impairment is recognized as an allowance on the consolidated balance sheets with a corresponding adjustment on the consolidated statements of a security falls below its net amortized cost.operations. Significant judgment is required in this analysis. We consider the estimated net recoverable value of the loan or security as well as other factors, including but not limited to the fair value of any collateral, the amount and the status of any senior debt, the prospects for the borrower and the competitive situation of the region where the borrower does business. Fair value is typically estimated based upon discounting the expected future cash flows of the underlying collateral taking into consideration the discount rate, capitalization rate, occupancy, creditworthiness of major tenants and many other factors. This requires significant judgment and because it is based upon projections of future economic events, which are inherently subjective, the amounts ultimately realized may differ materially from the carrying value as of the balance sheet date. If upon completion of the assessment, the estimated fair value of the underlying collateral is less than the net carrying value of the loan, a specific allowance for loancredit losses is recorded. In the case of real estate securities, all or a portion of a deemed impairment may be recorded. Due to our limited life, any allowance for loancredit losses or impairment of real estate securities recorded may be difficult to recover.
MFFO is a metric used by management to evaluate our performance against other non-listed REITs which have limited lives with short and defined acquisition periods and targeted exit strategies shortly thereafter and is not intended to be used as a liquidity measure. Although management uses the MFFO metric to evaluate future operating performance, this metric excludes certain key operating items and other adjustments that may affect our overall operating performance. MFFO is not equivalent to net income or loss as determined under GAAP. We believe that our use of MFFO and the adjustments used to calculate it allow us to present our performance in a manner that reflects certain characteristics that are unique to non-listed REITs, such as their limited life, limited and defined acquisition period and targeted exit strategy, and hence that the use of such measures is useful to investors.
We believe that FFO provides useful context for understanding MFFO, and we believe that MFFO is a useful non-GAAP measure for non-listed REITs. It is helpful to management and stockholders in assessing our future operating performance once our organization and offering and acquisition and development stages are complete, because it eliminates from net income non-cash fair value adjustments on our real estate securities and acquisition fees and acquisition expenses that are incurred as part of our investment activities. However, MFFO may not be a useful measure of our operating performance or as a comparable measure to other typical non-listed REITs if we do not continue to operate in a similar manner to other non-listed REITs, including if we were to extend our acquisition and development stage or if we determined not to pursue an exit strategy.
However, MFFO does have certain limitations. For instance, the effect of any amortization or accretion on investments originated or acquired at a premium or discount, respectively, is not reported in MFFO. In addition, realized gains or losses from acquisitions and dispositions and other adjustments listed above are not reported in MFFO, even though such realized gains or losses and other adjustments could affect our operating performance and cash available for distribution. Stockholders should note that any cash gains generated from the sale of investments would generally be used to fund new investments. Any mark-to-market or fair value adjustments may be based on many factors, including current operational or individual property issues or general market or overall industry conditions.
Neither FFO nor MFFO is equivalent to net income or loss or cash flow provided by operating activities determined in accordance with GAAP and should not be construed to be more relevant or accurate than the GAAP methodology in evaluating our operating performance or our ability to pay distributions to our stockholders. Neither FFO nor MFFO is necessarily indicative of cash flow available to fund our cash needs including our ability to make distributions to our stockholders. FFO and MFFO do not represent amounts available for management’s discretionary use because of needed capital replacement or expansion, debt service obligations or other commitments or uncertainties. Furthermore, neither FFO nor MFFO should be considered as an alternative to net income or loss as an indicator of our operating performance.
Neither the SEC, NAREIT nor any other regulatory body has passed judgment on the acceptability of the adjustments that we use to calculate FFO or MFFO. In the future, the SEC, NAREIT or another regulatory body may decide to standardize the

allowable adjustments across the non-listed REIT industry and we would have to adjust our calculation and characterization of FFO or MFFO.
The table below reflects the items deducted or added to net income or loss in our calculation of FFO and MFFO for the ninethree months ended September 30, 2017March 31, 2020 and 2016 (inMarch 31, 2019 (dollars in thousands):
  Three Months Ended September 30, Nine Months Ended September 30,
  2017 2016 2017 2016
Funds From Operations:        
Net income (GAAP) $6,975
 $5,373
 $19,305
 $23,653
Funds from operations $6,975
 $5,373
 $19,305
 $23,653
Modified Funds From Operations:        
Funds from operations $6,975
 $5,373
 $19,305
 $23,653
Accretion of premiums, discounts and fees on investments, net (458) (619) (1,617) (1,761)
Acquisition fees 1,685
 255
 4,175
 635
Unrealized (gain) loss on commercial mortgage loans held-for-sale 27
 —
 (220) —
Loan loss (recovery)/provision (641) (113) (222) 721
Unrealized (gains)/losses on derivatives (583) —
 (583) —
Income tax (benefit)/expense

 (291) —
 (291)—
—
Modified funds from operations $6,714
 $4,896
 $20,547
 $23,248
 Three Months Ended March 31,
 2020 2019
Funds From Operations:   
Net income/(loss)$(7,400) $19,890
Impairment losses on real estate owned assets398
 —
Depreciation and amortization588
 —
Funds from operations$(6,414) $19,890
Modified Funds From Operations:   
Funds from operations$(6,414) $19,890
Amortization of premiums, discounts and fees on investments, net(1,710) (1,506)
Acquisition expenses142
 248
Unrealized (gain) loss on financial instruments6,831
 1,402
Increase/(decrease) for credit losses14,597
 2,495
Modified funds from operations (1)
$13,446
 $22,529

__________________________
(1) Modified funds from operations for three months ended March 31, 2020 includes a non-cash charge of $4.5 million related to the call of BSPRT 2017 - FL2 CLO on January 15, 2020. Excluding the non-cash charge modified funds from operations would be $17.9 million. For three months ended March 31, 2019 there was no such non-cash adjustment.
Item 3. Quantitative and Qualitative Disclosures about Market Risk.
Credit Risk
Our investments are subject to a high degree of credit risk. Credit risk is the exposure to loss from loan defaults. Default rates are subject to a wide variety of factors, including, but not limited to, borrower financial condition, property performance, property management, supply/demand factors, construction trends, consumer behavior, regional economics, interest rates, the strength of the U.S. economy, and other factors beyond our control. All loans are subject to a certain probability of default. We manage credit risk through the underwriting process, acquiring our investments at the appropriate discount to face value, if any, and establishing loss assumptions. We also carefully monitor the performance of the loans, as well as external factors that may affect their value.
Capital Market Risk
We are exposed to risks related to the debt capital markets, and our related ability to finance our business through borrowings under repurchase obligations or other debt instruments. As a REIT, we are required to distribute a significant portion of our taxable income annually, which constrains our ability to accumulate operating cash flow and therefore requires us to utilize debt or equity capital to finance our business. We seek to mitigate these risks by monitoring the debt capital markets to inform our decisions on the amount, timing and terms of capital we raise.
The COVID-19 pandemic has resulted in extreme volatility in a variety of global markets, including the real estate-related debt markets. We have and may continue to receive margin calls from our lenders as a result of the decline in the market value of the assets pledged by us to our lenders under our repurchase agreements and warehouse credit facilities, and if we fail to resolve such margin calls when due by payment of cash or delivery of additional collateral, the lenders may exercise remedies including demanding payment by us of our aggregate outstanding financing obligations and/or taking ownership of the loans or other assets securing the applicable obligations and liquidating them at inopportune prices.
Interest Rate Risk
Our market risk arises primarily from interest rate risk relating to interest rate fluctuations. Many factors including governmental monetary and tax policies, domestic and international economic and political considerations and other factors that are beyond our control contribute to interest rate risk. To meet our short and long-term liquidity requirements, we may borrow funds at fixed and variable rates. Our interest rate risk management objectives are to limit the impact of interest rate changes in earnings and cash flows and to lower our overall borrowing costs. To achieve these objectives, from time to time, we may enter into interest rate hedge contracts such as swaps, collars and treasury lock agreements in order to mitigate our interest rate risk with respect to various debt instruments. While hedging activities may insulate us against adverse changes in interest rates, they may also limit our ability to participate in benefits of lower interest rates with respect to our portfolio of investments with fixed interest rates. During the periods covered by this report, we did not engage in interest rate hedging activities. We do not hold or issue these derivative contracts for trading or speculative purposes. We do not have any foreign denominated investments, and thus, we are not exposed to foreign currency fluctuations.

As of September 30, 2017March 31, 2020 and December 31, 2016,2019, our portfolio included 64118 and 62135 variable rate investments, respectively, based on LIBOR for various terms. Borrowings under our repurchase agreements are also based on LIBOR. The following table quantifies the potential changes in interest income net of interest expense should interest rates increase by 5025 or 10050 basis points or decrease by 25 basis points, assuming that our current balance sheet was to remain constant and no actions were taken to alter our existing interest rate sensitivity:sensitivity.
For the LIBOR sensitivity range, a reduction in LIBOR results in an increase in our portfolio return. This is driven by the LIBOR floor in place for majority of our commercial mortgage loans, held for investment. In contrast, the majority of our financing instruments do not have LIBOR floors. The present of a LIBOR floor on interest-bearing assets coupled with lack of LIBOR floor on interest bearing liabilities allows the portfolio to generate a higher return for a decrease in LIBOR rate compared to increase in LIBOR rate for the LIBOR range presented:
 Estimated Percentage Change in Interest Income Net of Interest Expense Estimated Percentage Change in Interest Income Net of Interest Expense
Change in Interest Rates September 30, 2017 December 31, 2016 March 31, 2020 December 31, 2019
(-) 25 Basis Points (1.86)% (1.94)% 3.96 % 3.22 %
Base Interest Rate — % — % — % — %
(+) 50 Basis Points 3.31 % 3.89 % (6.34)% (2.20)%
(+) 100 Basis Points 6.75 % 7.78 % (9.40)% (0.26)%
Real Estate Risk
The market values of commercial mortgage assets are subject to volatility and may be affected adversely by a number of factors, including, but not limited to, the impacts of the COVID-19 pandemic discussed above, national, regional and local economic conditions (which may be adversely affected by industry slowdowns and other factors); local real estate conditions; changes or continued weakness in specific industry segments; and demographic factors. In addition, decreases in property values reduce the value of the collateral and the potential proceeds available to a borrower to repay the underlying loans, which could also cause us to suffer losses.


Item 4. Controls and Procedures.
Disclosure Controls and Procedures
In accordance with Rules 13a-15(b) and 15d-15(b) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in RuleRules 13a-15(e) and Rule 15d-15(e) of the Exchange Act) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded, as of the end of such period, that our disclosure controls and procedures are effective in recording, processing, summarizing and reporting, on a timely basis, information required to be disclosed by us in our reports that we file or submit under the Exchange Act.
Changes in Internal ControlsControl Over Financial Reporting
During the three monthsquarter ended September 30, 2017,March 31, 2020, there were no changes in our internal controlscontrol over financial reporting (as defined in Rule 13a-15(f) and 15(d)-15(f) of the Exchange Act) that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II
Item 1. Legal Proceedings.
In the ordinary course of business, the Company may become subject to litigation, claims and regulatory matters. Except as noted below, theThe Company has no knowledge of material pending legal proceedings, other than ordinary routine litigation incidental to the business, or material pending or threatened regulatory proceedings, pending or known to be contemplated against the Company at this time.  On June 6, 2016, an action was filed against the Company and two of its directors in the United States District Court for the Southern District of New York and styled Rurode v. Realty Finance Trust, Inc., et. al., No. 1:16-cv-04553.  The plaintiff’s individual and derivative complaint alleged that the Company made material misstatements in the proxy statement for its 2016 annual stockholder’s meeting related to an alleged planned merger transaction between the Company and an affiliate of its former advisor.  The plaintiff alleged violations of Section 14(a) of the Securities Exchange Act of 1934 and sought to enjoin the Company’s 2016 annual meeting.  On June 28, 2016, the parties filed, and the court subsequently entered,  a stipulation and order of dismissal of the action, but provided that the court would retain jurisdiction to consider any application by plaintiff for an award of attorneys’ fees.  On October 20, 2016, the plaintiff submitted a request for $0.75 million in fees and expenses. On July 19, 2017, the Company and the plaintiff entered into an agreement pursuant to which the Company paid $245,000 in attorneys’ fees and expenses and the plaintiff agreed to withdraw its October 20, 2016 fee request to the court and to release the Company from any further claims related to such fee request.
Item 1A. Risk Factors.
Our potential risks and uncertainties are presentedExcept as described below, there have been no material changes to the risk factors relating to the Company disclosed in the section entitled "Risk Factors" contained in the Annual Report onour Form 10-K10-K/A for the year ended December 31, 2016. In addition, we have identified2019.
The COVID-19 pandemic is materially and adversely affecting our financial condition, operating results and cash flows and the following risk factors which may potentially impact our business due to the conduit segmentoperations and financial performance of many of the business.

We may use warehouse facilities that may limitborrowers underlying our ability to acquirereal estate-related assets, and we may incur lossesexpect the adverse impacts will continue in the future.
Since December 2019, COVID-19 has spread globally, including to every state in the United States. In March 2020, the World Health Organization declared COVID-19 a pandemic, and subsequently, the United States declared a national emergency. The COVID-19 pandemic has had, and another pandemic or public health crisis in the future could have, repercussions across domestic and global economies and financial markets. The global impact of the COVID-19 outbreak evolved rapidly and many governmental authorities, including state and local governments in regions in which our borrowers own properties, have reacted by instituting government restrictions, border closings, quarantines, “shelter-in-place” orders and “social distancing” guidelines which have forced many of our borrowers to suspend or significantly restrict their business activities, and has resulted in a dramatic increase in national unemployment.
The COVID-19 pandemic is materially and adversely affecting our financial condition, operating results and cash flows and the operations and financial performance of many of the borrowers underlying our real estate-related assets, and we expect the adverse impacts will continue in the future. Specifically, the COVID-19 pandemic has:
significantly disrupted the financial markets for the assets in our real estate securities portfolio, resulting in significant decreases in market values for these assets and significant market volatility. This has resulted in margin calls from our lenders, which we have thus far satisfied, and could result in future margin calls which, if not satisfied, could result in the collateralliquidation of some of our assets at significant losses.
resulted in a decline in the value of commercial real estate generally, and significant declines in certain assets classes, including hospitality and retail, which has negatively impacted the value of our commercial mortgage loan portfolio, and could continue to negatively impact the value in the future, potentially materially.
negatively impacted the financial stability of many of our borrowers, which has and is liquidated.expected to continue to result in an increase in the number of our borrowers who become delinquent or default on their loans, or who seek to defer payment on or to amend the terms of their loans. Borrowers in the hospitality and retail sector have been particularly adversely impacted.
increased the cost and decreased the availability of debt capital, including as a result of dislocations in the commercial mortgage-backed securities market, which has currently made raising capital through CDO or CLO securitizations impracticable, and as a result of lenders permitting significantly lower advance rates on our repurchase agreements.

We may utilize warehouse facilities pursuant to which we accumulate mortgageas a result of the decline in the market value of the loans in anticipation of a securitization financing, which assets are pledged as collateral for such facilities until the securitization transaction is consummated. In order to borrow funds to acquire assets under any additional warehouse facilities, we expect that our lenders thereunder would have the right to review the potential assets for which we are seeking financing. We may be unable to obtain the consent of a lender to acquire assets that we believe would be beneficial to usCDOs and CLOs, we may be unable to obtain alternate financing for such assets. In addition, no assurance can be given that a securitization transaction would be consummated with respect to the assets being warehoused. If the securitization is not consummated, the lender could liquidate the warehoused collateral and we would then have to pay any amount by which the original purchase price of the collateral assets exceeds its sale price, subject to negotiated caps, if any, on our exposure. In addition, regardless of whether the securitization is consummated, if any of the warehoused collateral is sold before the consummation, we would have to bear any resulting loss on the sale. No assurance can be given that we will be able to obtain additional warehouse facilities on favorable terms,meet certain interest coverage tests, overcollateralization coverage tests or at all.

We directly or indirectly utilize non‑recourse securitizations, and such structures expose us to risksother tests that could result in losses to us.

We utilize non‑recourse securitizationsa change in the priority of our investmentsdistributions, which could result in mortgage loansthe reduction or elimination of distributions to the extent consistent withsubordinate debt and equity tranches we own until the maintenancetests have been met or certain senior classes of securities have been paid in full. Accordingly, we may experience a reduction in our REIT qualificationcash flow from those interests which may adversely affect our liquidity and exemption from the Investment Company Act in ordertherefore our ability to generate cash for funding new investments and/fund our operations or to leverage existing assets. In most instances, this involves us transferring our loans to a special purpose securitization entity in exchange for cash. In some sale transactions, we also retain a subordinated interest in the loans sold. The securitization of our portfolio investments might magnify our exposure to losses on those portfolio investments because the subordinated interest we retain in the loans sold would be subordinate to the senior interest in the loans sold, and we would, therefore, absorb all of the losses sustained with respect to a loan sold before the owners of the senior interest experience any losses. Moreover, we cannot be assured that we will be able to access the securitization market in the future, or be able to do so at favorable rates. The inability to consummate securitizations of our portfolio investments to finance our investmentsaddress maturing liabilities on a long‑term basis could require us to seek other forms of potentially less attractivetimely basis.
resulted in a general decline in business activity which if continued will result in a decline in demand for mortgage financing, or to liquidate assets at an inopportune time or price, which could adversely affect our performanceability to make new investments or to redeploy the proceeds from repayments of our existing investments.
created valuation uncertainties that make it difficult to estimate provisions for credit losses.
resulted in an extended period of remote working by our Advisor’s employees which could strain technology resources and introduce operational risks, including heightened cybersecurity risk.
The extent to which the COVID-19 pandemic impacts our or our borrowers’ operations will depend on future developments which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic and the direct and indirect economic effects of the pandemic and containment measures. The inability of our borrowers to meet their loan obligations and/or borrowers filing for bankruptcy protection would reduce our cash flows, which would impact our ability to continuepay dividends to grow our business.

stockholders. The securitization market is subjectrapid development and fluidity of this situation precludes any prediction as to an evolving regulatory environment that may affect certain aspectsthe full adverse impact of these activities.

Asthe COVID-19 pandemic. Moreover, many risk factors set forth in our Annual Report on Form 10-K/A for the year ended December 31, 2019 should be interpreted as heightened risks as a result of the dislocationimpact of the credit markets, the securitization market has become subject to additional regulation. In particular, pursuant to the Dodd‑Frank Wall Street Reform and Consumer Protection Act, various federal agencies have promulgated a rule that generally requires issuers in securitizations to retain 5% of the risk associated with the securities. To the extent we are required to buy significant B‑Pieces in our securitizations, this could reduce our returns in these transactions.


We enter into hedging transactions that could expose us to contingent liabilities in the future.

Subject to maintaining our qualification as a REIT, part of our investment strategy involves entering into hedging transactions that require us to fund cash payments in certain circumstances (such as the early termination of the hedging instrument caused by an event of default or other early termination event, or the decision by a counterparty to request margin securities it is contractually owed under the terms of the hedging instrument). The amount due would be equal to the unrealized loss of the open swap positions with the respective counterparty and could also include other fees and charges. These economic losses will be reflected in our results of operations, and our ability to fund these obligations will depend on the liquidity of our assets and access to capital at the time, and the need to fund these obligations could adversely impact our financial condition.

Hedging may adversely affect our earnings, which could reduce our cash available for distribution to our stockholders.

Subject to maintaining our qualification as a REIT, we pursue various hedging strategies to seek to reduce our exposure to adverse changes in interest rates. Our hedging activity varies in scope based on the level and volatility of interest rates, exchange rates, the types of assets held and other changing market conditions. Hedging may fail to protect or could adversely affect us because, among other things:
interest rate, currency and/or credit hedging can be expensive and may result in us receiving less interest income;
available interest rate hedges may not correspond directly with the interest rate risk for which protection is sought;
due to a credit loss, prepayment or asset sale, the duration of the hedge may not match the duration of the related asset or liability;
the amount of income that a REIT may earn from hedging transactions (other than hedging transactions that satisfy certain requirements of the Internal Revenue Code or that are done through a taxable REIT subsidiary) to offset losses is limited by U.S. federal tax provisions governing REITs;
the credit quality of the hedging counterparty owing money on the hedge may be downgraded to such an extent that it impairs our ability to sell or assign our side of the hedging transaction; and
the hedging counterparty owing money in the hedging transaction may default on its obligation to pay.

We may fail to recalculate, readjust or execute hedges in an efficient manner.

Any hedging activity in which we engage may materially and adversely affect our results of operations and cash flows. Therefore, while we may enter into such transactions seeking to reduce risks, unanticipated changes in interest rates, credit spreads or currencies may result in poorer overall investment performance than if we had not engaged in any such hedging transactions. In addition, the degree of correlation between price movements of the instruments used in a hedging strategy and price movements in the portfolio positions or liabilities being hedged may vary materially. Moreover, for a variety of reasons, we may not seek to establish a perfect correlation between such hedging instruments and the portfolio positions or liabilities being hedged. Any such imperfect correlation may prevent us from achieving the intended hedge and expose us to risk of loss.COVID-19 pandemic.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
We did not sell any equity securities that were not registered under theUnregistered Sales of Equity Securities Act during the three months ended September 30, 2017.
Refer to See Note 7"Note 9 - Common Stock Transactions" to our consolidated financial statements included in this Quarterly Report on Form 10-Q for a discussion of the common stock purchase agreements and preferred stock purchase agreements we entered into with certain accredited investors, certain officers of the Company, and certain owners, employees and associates of the Advisor and its affiliates pursuant to which such persons committed to buy shares of our amendedcommon stock and restated sharePreferred Stock. During the three months ended March 31, 2020, the Company sold 650,034 shares of common stock for proceeds of $10.9 million, 14 shares of Series A Preferred Stock for proceeds of $0.1 million and did not sell any Series C Preferred Stock. As of March 31, 2020, the Company did not have any outstanding purchase commitments for any classes of the Company's shares.
The offer and sale of the common stock and Preferred Stock were conducted in reliance upon the exemption provided in Section 4(a)(2) of the Securities Act and/or Regulation D promulgated thereunder.
Issuer Purchases of Equity Securities
Share repurchase program (the “SRP”), which became effectiveactivity under the SRP during three months ended March 31, 2020 was as follows:
 Number of Requests Number of Shares Repurchased Average Price per Share
Cumulative as of December 31, 20195,878
 3,542,267
 $20.23
January 1 - January 31, 2020(1)
1,170
 361,829
 $18.56
February 1 - February 28, 2020—
 —
 N/A
March 1 - March 31, 2020—
 —
 N/A
Cumulative as of March 31, 20207,048
 3,904,096
 $20.08
__________________
(1) Reflects shares repurchased in January 2020 pursuant to repurchase requests submitted for the second semester of 2019. Pursuant to the terms of the SRP, the Company is only authorized to repurchase up to the amount of proceeds reinvested through our DRIP during the applicable semester. On March 26, 2020, the Company temporarily suspended the DRIP. As a result, redemption requests for 11,496 shares were not fulfilled for the second semester of 2019. Therefore amounts available to fund repurchases for the first semester of 2020 will be limited to DRIP proceeds from January and February 2020, and amounts available to fund repurchases for the second semester of 2020 will depend on February 28, 2016.the amount of dividends paid and the reactivation of the DRIP. See "Note 9 - Stock Transactions" to our consolidated financial statements included in this Quarterly Report on Form 10-Q for further discussion of our SRP.
Item 3. Defaults upon Senior Securities.
Not applicable.

Item 4. Mine Safety Disclosures.
Not applicable.
Item5. Other Information.
Not applicable.None.

Item 6. Exhibits.
EXHIBITS INDEX
The following exhibits are included in this Quarterly Report on Form 10-Q for the quarter ended September 30, 2017March 31, 2020 (and are numbered in accordance with Item 601 of Regulation S-K).
Exhibit No. Description
3.110.1(1)*
 
ArticlesLoan and Security Agreement, dated February 11, 2020 and as amended by Agreement of Amendment and Restatement, effective August 16, 2017.
3.2(1)
Amended and Restated Bylaws.
10.1(2)
Master Repurchase Agreement, dated as of August 31, 2017, by andMarch 26, 2020, among Column Financial, Inc., Credit Suisse AG, Alpine Securitization Ltd., Benefit Street Partners Realty Trust, Inc. and BSPRT Finance Sub-LenderOP SUB I, LLC.
10.2(2)
Guaranty, dated as of August 31, 2017, by and between Benefit Street Partners Realty Trust, Inc. and ColumnFinancial, Inc.
10.3(3)
Credit Agreement, dated as of September 19, 2017, by and amongLLC, Benefit Street Partners Realty Trust, Inc., BSPRT BB Loan,Benefit Street Partners Realty Trust LP, LLC, BSPRT Finance Sub-Lender II, LLC, Barclays Bank PLC, as sole lead arrangerBenefit Street Partners Realty Operating Partnership, L.P., and bookrunner, Barclays Bank PLC, as administrative agent,Security Benefit Life Insurance Company and the other lenders from time to time parties thereto.thereto, and Cortland Capital Market Services LLC, as administrative agent.
10.431.1(3)*
Guarantee and Collateral Agreement, dated as of September 19, 2017, by and among Benefit Street Partners Realty Trust, Inc., BSPRT BB Loan, LLC, BSPRT Finance Sub-Lender II, LLC and Barclays Bank PLC, as administrative agent for the secured parties.
31.1* 
Certification of the Principal Executive Officer of the Company pursuant to Securities Exchange Act Rule 13a - 14(a) or 15(d) - 14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2*
31.2*
 
Certification of the Principal Financial Officer of the Company pursuant to Securities Exchange Act Rule 13a - 14(a) or 15(d) - 14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32*
32*
 
Written statements of the Principal Executive Officer and Principal Financial Officer of the Company pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101*
101*
 
XBRL (eXtensible Business Reporting Language). The following materials from Benefit Street Partners Realty Trust, Inc.’s Quarterly Report on Form 10-Q for the nine monthsquarter ended September 30, 2017,March 31, 2020, formatted in XBRL: (i) the consolidatedConsolidated Balance Sheets, (ii) the consolidatedConsolidated Statements of Operations and Comprehensive Income (Loss), (iii) the consolidated Statements of Comprehensive Income, (iv) the consolidatedConsolidated Statement of Changes in Stockholders' Equity, (v)(iv) the consolidatedConsolidated Statements of Cash Flows and (vi)(v) the Notes to the consolidatedConsolidated Financial StatementsStatements.

*Filed herewith.
(1) Filed as an exhibit to our current report on Form 8-K filed with the SEC on August 17, 2017.
(2) Filed as an exhibit to our current report on Form 8-K filed with the SEC on September 7, 2017.
(3) Filed as an exhibit to our current report on Form 8-K filed with the SEC on September 25, 2017.SIGNATURES







BENEFIT STREET PARTNERS REALTY TRUST, INC.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
BENEFIT STREET PARTNERS REALTY TRUST, INC.
  Benefit Street Partners Realty Trust, Inc. 
Dated: NovemberMay 14, 20172020
By: By
/s/ Richard J. Byrne
Name: Richard J. Byrne
Title: Chief Executive Officer and President
(Principal Executive Officer)
  
Dated: NovemberMay 14, 20172020
By: By
/s/ Jerome S. Baglien
Name: Jerome S. Baglien
Title: Chief Financial Officer and Treasurer
(Principal Financial Officer and Principal Accounting Officer)


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