QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 90-0967526 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Large accelerated filer | ☐ | Accelerated filer | ☐ | ||||||||
Non-accelerated filer | ☑ | Smaller reporting company | ☑ | ||||||||
Emerging growth company | ☑ |
Page | ||||||||
PART I | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
March 31, 2021 | December 31, 2020 | |||||||||||||
(unaudited) | ||||||||||||||
Assets | ||||||||||||||
Equity investment in Terra JV, LLC at fair value (cost of $229,062,384 and $230,915,151, respectively) | $ | 233,997,676 | $ | 235,357,977 | ||||||||||
Cash and cash equivalents | 135,654 | 225,214 | ||||||||||||
Other assets | 26,330 | 33,830 | ||||||||||||
Total assets | $ | 234,159,660 | $ | 235,617,021 | ||||||||||
Liabilities and Members’ Capital | ||||||||||||||
Liabilities | ||||||||||||||
Accounts payable and accrued expenses | $ | 222,962 | $ | 199,602 | ||||||||||
Total liabilities | 222,962 | 199,602 | ||||||||||||
0 | 0 | |||||||||||||
Members’ capital: | ||||||||||||||
Managing member | 0 | 0 | ||||||||||||
Non-managing members | 233,936,698 | 235,417,419 | ||||||||||||
Total members’ capital | 233,936,698 | 235,417,419 | ||||||||||||
Total liabilities and members’ capital | $ | 234,159,660 | $ | 235,617,021 | ||||||||||
Net asset value per unit | $ | 35,244 | $ | 35,467 |
September 30, 2017 | December 31, 2016 | |||||||
(unaudited) | ||||||||
Assets | ||||||||
Equity investment in Terra Property Trust, Inc. at fair value — controlled (cost of $277,456,081 and $291,468,567, respectively) | $ | 277,326,857 | $ | 290,419,317 | ||||
Cash and cash equivalents | 167,784 | 41,520 | ||||||
Due from Terra Property Trust, Inc. | 25,000 | — | ||||||
Other assets | 4,542 | 7,447 | ||||||
Total assets | $ | 277,524,183 | $ | 290,468,284 | ||||
Liabilities and Members’ Capital | ||||||||
Liabilities | ||||||||
Accounts payable and accrued expenses | $ | 189,685 | $ | 441,388 | ||||
Due to Terra Property Trust, Inc. | — | 438,249 | ||||||
Other liabilities | 21,697 | — | ||||||
Distributions payable | — | 2,243 | ||||||
Total liabilities | 211,382 | 881,880 | ||||||
Commitments and contingencies (Note 6) | ||||||||
Members’ capital: | ||||||||
Managing member | — | — | ||||||
Non-managing members | 277,312,801 | 289,586,404 | ||||||
Total members’ capital | 277,312,801 | 289,586,404 | ||||||
Total liabilities and members’ capital | $ | 277,524,183 | $ | 290,468,284 |
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | 2021 | 2020 | |||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||||||||
Investment income — controlled | ||||||||||||||||||||||||||||||||
Investment income | Investment income | |||||||||||||||||||||||||||||||
Dividend income | $ | 4,448,792 | $ | 9,824,336 | $ | 15,703,171 | $ | 25,042,346 | Dividend income | $ | 1,126,895 | $ | 1,264,438 | |||||||||||||||||||
Investment income | ||||||||||||||||||||||||||||||||
Other operating income | 111 | 614 | 1,064 | 8,571 | Other operating income | 20 | 144 | |||||||||||||||||||||||||
Total investment income | 4,448,903 | 9,824,950 | 15,704,235 | 25,050,917 | Total investment income | 1,126,915 | 1,264,582 | |||||||||||||||||||||||||
Operating expenses | Operating expenses | |||||||||||||||||||||||||||||||
Professional fees | 104,100 | 269,635 | 431,465 | 549,211 | Professional fees | 120,135 | 174,099 | |||||||||||||||||||||||||
Merger transaction fees | — | — | — | 388,692 | ||||||||||||||||||||||||||||
Other | 3,448 | (38,342 | ) | 35,761 | 52,954 | Other | 385 | 1,449 | ||||||||||||||||||||||||
Total operating expenses | 107,548 | 231,293 | 467,226 | 990,857 | Total operating expenses | 120,520 | 175,548 | |||||||||||||||||||||||||
Net investment income | 4,341,355 | 9,593,657 | 15,237,009 | 24,060,060 | Net investment income | 1,006,395 | 1,089,034 | |||||||||||||||||||||||||
Net change in unrealized depreciation on investment — controlled | 428,032 | (730,673 | ) | 920,026 | (1,400,694 | ) | ||||||||||||||||||||||||||
Net increase in members’ capital resulting from operations | $ | 4,769,387 | $ | 8,862,984 | $ | 16,157,035 | $ | 22,659,366 | ||||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on investment | Net change in unrealized appreciation (depreciation) on investment | 492,466 | (2,286,298) | |||||||||||||||||||||||||||||
Net increase (decrease) in members’ capital resulting from operations | Net increase (decrease) in members’ capital resulting from operations | $ | 1,498,861 | $ | (1,197,264) | |||||||||||||||||||||||||||
Per unit data: | Per unit data: | |||||||||||||||||||||||||||||||
Net investment income per unit | Net investment income per unit | $ | 152 | $ | 164 | |||||||||||||||||||||||||||
Net increase (decrease) in members’ capital resulting from operations per unit | Net increase (decrease) in members’ capital resulting from operations per unit | $ | 226 | $ | (180) | |||||||||||||||||||||||||||
Weighted average units outstanding | Weighted average units outstanding | 6,638 | 6,638 |
Managing Member | Non-Managing Members | Total | |||||||||||||||
Balance, January 1, 2021 | 0 | $ | 235,417,419 | $ | 235,417,419 | ||||||||||||
Capital distributions | 0 | (2,979,582) | (2,979,582) | ||||||||||||||
Increase in members’ capital resulting from operations: | |||||||||||||||||
Net investment income | 0 | 1,006,395 | 1,006,395 | ||||||||||||||
Net change in unrealized appreciation on investment | 0 | 492,466 | 492,466 | ||||||||||||||
Net increase in members’ capital resulting from operations | 0 | 1,498,861 | 1,498,861 | ||||||||||||||
Balance, March 31, 2021 | $ | 0 | $ | 233,936,698 | $ | 233,936,698 |
Managing Member | Non-Managing Members | Total | |||||||||||||||
Balance, January 1, 2020 | 0 | $ | 247,066,913 | $ | 247,066,913 | ||||||||||||
Capital distributions | 0 | (7,467,271) | (7,467,271) | ||||||||||||||
Increase in members’ capital resulting from operations: | |||||||||||||||||
Net investment income | 0 | 1,089,034 | 1,089,034 | ||||||||||||||
Net change in unrealized depreciation on investment | 0 | (2,286,298) | (2,286,298) | ||||||||||||||
Net decrease in members’ capital resulting from operations | 0 | (1,197,264) | (1,197,264) | ||||||||||||||
Balance, March 31, 2020 | $ | 0 | $ | 238,402,378 | $ | 238,402,378 |
Managing Member | Non-Managing Members | Total | |||||||||
Balance, January 1, 2017 | $ | — | $ | 289,586,404 | $ | 289,586,404 | |||||
Capital distributions | — | (23,127,464 | ) | (23,127,464 | ) | ||||||
Capital redemptions | — | (5,303,174 | ) | (5,303,174 | ) | ||||||
Increase in members’ capital resulting from operations: | |||||||||||
Net investment income | — | 15,237,009 | 15,237,009 | ||||||||
Net change in unrealized depreciation on investment | — | 920,026 | 920,026 | ||||||||
Net increase in members’ capital resulting from operations | — | 16,157,035 | 16,157,035 | ||||||||
Balance, September 30, 2017 | $ | — | $ | 277,312,801 | $ | 277,312,801 |
Managing Member | Non-Managing Members | Total | |||||||||
Balance, January 1, 2016 | $ | — | $ | 122,208,698 | $ | 122,208,698 | |||||
Capital contributions from Merger | — | 155,751,516 | 155,751,516 | ||||||||
Capital contributions, net of selling commissions and dealer manager fees of $1,277,916 | — | 25,598,261 | 25,598,261 | ||||||||
Capital distributions | — | (22,949,286 | ) | (22,949,286 | ) | ||||||
Capital redemptions | — | (6,771,430 | ) | (6,771,430 | ) | ||||||
Increase in members’ capital resulting from operations: | |||||||||||
Net investment income | — | 24,060,060 | 24,060,060 | ||||||||
Net change in unrealized depreciation on investment | — | (1,400,694 | ) | (1,400,694 | ) | ||||||
Net increase in members’ capital resulting from operations | — | 22,659,366 | 22,659,366 | ||||||||
Balance, September 30, 2016 | $ | — | $ | 296,497,125 | $ | 296,497,125 |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net increase (decrease) in members’ capital resulting from operations | $ | 1,498,861 | $ | (1,197,264) | |||||||
Adjustments to reconcile net increase (decrease) in members’ capital resulting from operations to net cash provided by operating activities: | |||||||||||
Return of capital on investment | 1,852,767 | 6,562,736 | |||||||||
Net change in unrealized (appreciation) depreciation on investment | (492,466) | 2,286,298 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Decrease (increase) in other assets | 7,500 | (4,873) | |||||||||
Increase in accounts payable and accrued expenses | 23,360 | 68,885 | |||||||||
Decrease in due to related party | 0 | (38,000) | |||||||||
Net cash provided by operating activities | 2,890,022 | 7,677,782 | |||||||||
Cash flows from financing activities: | |||||||||||
Distributions paid | (2,979,582) | (7,467,271) | |||||||||
Net cash used in financing activities | (2,979,582) | (7,467,271) | |||||||||
Net (decrease) increase in cash and cash equivalents | (89,560) | 210,511 | |||||||||
Cash and cash equivalents at beginning of period | 225,214 | 97,937 | |||||||||
Cash and cash equivalents at end of period | $ | 135,654 | $ | 308,448 | |||||||
Supplemental Non-Cash Disclosure: | |||||||||||
Transfer of ownership interest in Terra Property Trust, Inc. to | $ | 0 | $ | 244,006,890 |
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
Cash flows from operating activities: | |||||||
Net increase in members’ capital resulting from operations | $ | 16,157,035 | $ | 22,659,366 | |||
Adjustments to reconcile net increase in members’ capital resulting from operations to net cash provided by operating activities: | |||||||
Purchase of common stock of Terra Property Trust, Inc. | — | (10,000,000 | ) | ||||
Cash transferred to Terra Property Trust, Inc. | — | (5,034,571 | ) | ||||
Return of capital on investment | 14,012,486 | 315,730 | |||||
Net change in unrealized depreciation on investment | (920,026 | ) | 1,400,694 | ||||
Changes in operating assets and liabilities: | |||||||
Interest receivable | — | 351,883 | |||||
Other assets | 898 | (129,397 | ) | ||||
Due to Manager | — | (705,389 | ) | ||||
Accounts payable and accrued expenses | (251,702 | ) | (5,339,803 | ) | |||
Due to Terra Property Trust, Inc. | (463,249 | ) | — | ||||
Taxes payable | — | (621,177 | ) | ||||
Interest payable | — | (172,051 | ) | ||||
Net cash provided by operating activities | 28,535,442 | 2,725,285 | |||||
Cash flows from financing activities: | |||||||
Proceeds from capital contributions, net of selling commissions and dealer manager fees | — | 25,598,261 | |||||
Distributions paid | (23,129,410 | ) | (22,949,286 | ) | |||
Payments for capital redemptions | (5,279,768 | ) | (10,198,413 | ) | |||
Cash acquired in the Merger | — | 3,480,981 | |||||
Net cash used in financing activities | (28,409,178 | ) | (4,068,457 | ) | |||
Net increase (decrease) in cash and cash equivalents | 126,264 | (1,343,172 | ) | ||||
Cash and cash equivalents at beginning of period | 41,520 | 1,862,798 | |||||
Cash and cash equivalents at end of period | $ | 167,784 | $ | 519,626 | |||
Supplemental Disclosure of Cash Flows Information: | |||||||
Cash paid for income taxes | $ | — | $ | 681,033 | |||
Cash paid for interest | $ | — | $ | — |
Total Consideration: | ||||
Fair value of units issued | $ | 155,751,516 | ||
155,751,516 | ||||
Assets Acquired at Fair Value | ||||
Investments, at fair value | 142,768,001 | |||
Investments through participation interests, at fair value | 7,771,619 | |||
Equity investment in Terra Park Green Member, LLC, at fair value | 16,900,000 | |||
Restricted cash | 7,119,078 | |||
Interest receivable | 1,412,840 | |||
Other assets | 35,695 | |||
Liabilities Assumed at Fair Value | ||||
Obligations under participation agreements | (8,154,822 | ) | ||
Interest reserve and other deposits held on loans | (7,119,078 | ) | ||
Accounts payable and accrued expenses | (3,113,022 | ) | ||
Redemption liability | (3,426,983 | ) | ||
Due to Manager | (1,343,020 | ) | ||
Taxes payable | (232,040 | ) | ||
Interest payable | (80,807 | ) | ||
Other liabilities | (266,926 | ) | ||
Net assets acquired excluding cash | 152,270,535 | |||
Cash acquired in the Merger | $ | 3,480,981 |
Total Consideration: | ||||
Fair value of common stock of Terra Property Trust received | $ | 288,259,804 | ||
288,259,804 | ||||
Assets Contributed at Fair Value | ||||
Investments, at fair value | 276,746,475 | |||
Investments through participation interests, at fair value | 13,789,884 | |||
Equity investment in Terra Park Green Member, LLC, at fair value | 16,900,000 | |||
Restricted cash | 21,421,501 | |||
Interest receivable | 2,382,546 | |||
Due from related parties | 438,249 | |||
Other assets | 35,695 | |||
Liabilities Transferred at Fair Value | ||||
Obligations under participation agreements | (24,147,097 | ) | ||
Interest reserve and other deposits held on loans | (21,421,501 | ) | ||
Due to Manager | (2,011,003 | ) | ||
Other liabilities | (909,516 | ) | ||
Net assets transferred excluding cash | 283,225,233 | |||
Cash transferred to Terra Property Trust | $ | 5,034,571 |
Percentage Interest | March 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||
Investment | Date Acquired | Cost | Fair Value | % of Members’ Capital | Cost | Fair Value | % of Members’ Capital | |||||||||||||||||||||||||||||||||||||||||||
Terra JV, LLC | 3/2/2020 | 87.6 | % | $ | 229,062,384 | $ | 233,997,676 | 100.0 | % | $ | 230,915,151 | $ | 235,357,977 | 100.0 | % |
Number of Shares of Common Stock | September 30, 2017 | December 31, 2016 | |||||||||||||||||||||||||
Investment — Controlled | Date Acquired | Cost | Fair Value | % of Net Assets | Cost | Fair Value | % of Net Assets | ||||||||||||||||||||
Terra Property Trust, Inc. — 100% Owned | 1/1/2016 and 3/7/2016 | 14,912,990 | $ | 277,456,081 | $ | 277,326,857 | 100.1 | % | $ | 291,468,567 | $ | 290,419,317 | 100.3 | % |
Portfolio Company | Collateral Location | Property Type | Coupon Rate | Current Interest Rate | Exit Fee | Acquisition Date | Maturity Date | Principal Amount | Amortized Cost | Fair Value (1) | Pro Rata Fair Value (2) | % (3) | ||||||||||||||||||||||||||
Loans held for investment: | ||||||||||||||||||||||||||||||||||||||
Mezzanine loans: | ||||||||||||||||||||||||||||||||||||||
150 Blackstone River Road, LLC | US - MA | Industrial | 8.5 | % | 8.5 | % | 0 | % | 9/21/2017 | 9/6/2027 | $ | 7,000,000 | $ | 7,000,000 | $ | 6,995,064 | $ | 5,351,224 | 2.3 | % | ||||||||||||||||||
Austin H. I. Owner LLC (4) | US - TX | Hotel - full/ select service | 12.5 | % | 12.5 | % | 1.0 | % | 9/30/2015 | 10/6/2020 | 3,890,140 | 3,929,042 | 3,637,281 | 2,782,520 | 1.2 | % | ||||||||||||||||||||||
High Pointe Mezzanine Investments, LLC (5) | US - SC | Student housing | 13.0 | % | 13.0 | % | 1.0 | % | 12/27/2013 | 1/6/2024 | 3,000,000 | 3,189,700 | 2,986,866 | 2,284,952 | 1.0 | % | ||||||||||||||||||||||
LD Milipitas Mezz, LLC (6) | US - CA | Hotel - extended stay | LIBOR +10.25% (2.75% Floor) | 13.0 | % | 1.0 | % | 6/27/2018 | 6/27/2021 | 4,250,000 | 4,292,148 | 4,292,450 | 3,283,724 | 1.4 | % | |||||||||||||||||||||||
Stonewall Station Mezz LLC (5)(7)(8) | US - NC | Infill land | 12.0% current 2.0% PIK | 14.0 | % | 1.0 | % | 5/31/2018 | 5/20/2021 | 10,669,168 | 10,768,255 | 10,789,750 | 8,254,159 | 3.5 | % | |||||||||||||||||||||||
28,809,308 | 29,179,145 | 28,701,411 | 21,956,579 | 9.4 | % |
Collateral Location | Portfolio Company | Structure | Property Type | Coupon Rate | Acquisition Date | Maturity Date | Principal Amount | Amortized Cost | Fair Value (1) | % of Net Assets (2) | ||||||||
Loans held for investment — non-controlled: | ||||||||||||||||||
US - AL | ASA Mgt. Holdings, LLC | Preferred equity investment | Multifamily | 16.0 | % | 4/7/2012 | 8/1/2022 | $ | 2,100,000 | $ | 2,141,204 | $ | 2,124,927 | 0.8 | % | |||
SVA Mgt. Holdings, LLC | Preferred equity investment | Multifamily | 16.0 | % | 4/7/2012 | 8/1/2022 | 1,600,000 | 1,633,817 | 1,619,625 | 0.6 | % | |||||||
Total US - AL | 3,700,000 | 3,775,021 | 3,744,552 | 1.4 | % | |||||||||||||
US - CA | Palmer City-Core Stockton Street, LLC | Preferred equity investment | Hotel | 12.0 | % | 1/17/2014 | 12/17/2017 | 4,325,000 | 4,368,250 | 4,367,145 | 1.6 | % | ||||||
Maguire Partners-1733 Ocean, LLC | First mortgage | Office | LIBOR+8.5% | 3/7/2016 | 3/9/2018 | 52,986,912 | 53,494,280 | 53,637,569 | 19.3 | % | ||||||||
L.A. Warner Hotel Partners, LLC (3)(4)(5) | Preferred equity investment | Hotel | 12.0 | % | 7/25/2014 | 8/4/2018 | 32,100,000 | 32,669,975 | 32,417,458 | 11.7 | % | |||||||
TSG-Parcel 1, LLC (3)(5)(6)(7) | First mortgage | Land | 12.0 | % | 7/10/2015 | 10/10/2017 | 18,000,000 | 18,180,000 | 18,174,048 | 6.6 | % | |||||||
SparQ Mezz Borrower, LLC (8) | Mezzanine loan | Multifamily | 12.0 | % | 9/29/2017 | 10/1/2020 | — | — | — | — | % | |||||||
Total US - CA | 107,411,912 | 108,712,505 | 108,596,220 | 39.2 | % | |||||||||||||
US - DE | BPG Office Partners III/IV LLC (3)(4)(5) | Mezzanine loan | Office | 13.5 | % | 6/5/2015 | 6/5/2018 | 10,000,000 | 10,091,154 | 10,096,628 | 3.6 | % | ||||||
US - FL | 1100 Biscayne Management Holdco, LLC (3)(5)(7) | Mezzanine loan | Hotel | 12.0% current 3.0% PIK | 4/24/2015 | 10/9/2017 | 15,809,601 | 15,954,054 | 15,952,786 | 5.8 | % | |||||||
37 Gables Member LLC (4)(5) | Mezzanine loan | Multifamily | 13.0 | % | 6/16/2016 | 6/16/2019 | 5,750,000 | 5,795,947 | 5,800,317 | 2.1 | % | |||||||
Greystone Gables Holdings Member LLC (4)(5) | Preferred equity investment | Multifamily | 13.0 | % | 6/16/2016 | 6/16/2019 | 500,000 | 503,995 | 504,375 | 0.2 | % | |||||||
RS JZ 2700 NW2, LLC (3)(5) | First mortgage | Land | 12.0 | % | 9/1/2016 | 12/1/2017 | 21,360,000 | 21,569,263 | 21,575,419 | 7.8 | % | |||||||
Total US - FL | 43,419,601 | 43,823,259 | 43,832,897 | 15.9 | % | |||||||||||||
US - GA | YMP Georgia Portfolio Mezzanine, LLC | Mezzanine loan | Multifamily | 14.0 | % | 12/19/2013 | 1/6/2019 | 4,250,000 | 4,487,398 | 4,286,112 | 1.5 | % | ||||||
OHM Atlanta Owner, LLC (5)(6)(9) | First mortgage | Land | 12.0 | % | 6/20/2017 | 6/20/2018 | 24,500,000 | 24,724,490 | 24,724,490 | 8.9 | % | |||||||
Total US - GA | 28,750,000 | 29,211,888 | 29,010,602 | 10.4 | % | |||||||||||||
US - IN | Muncie Mezz, LLC | Mezzanine loan | Student housing | 13.0 | % | 8/29/2013 | 9/6/2023 | 2,700,000 | 2,688,171 | 3,059,033 | 1.1 | % | ||||||
US - MA | 150 Blackstone River Road, LLC | Mezzanine loan | Industrial | 8.5 | % | 9/21/2017 | 9/6/2027 | 7,000,000 | 7,000,000 | 7,000,000 | 2.5 | % | ||||||
US - NC | Milestone Greensboro Holdings, LLC (4)(5) | Mezzanine loan | Hotel | 14.0 | % | 3/1/2013 | 3/1/2018 | 3,500,000 | 3,540,614 | 3,534,591 | 1.3 | % |
Portfolio Company | Collateral Location | Property Type | Coupon Rate | Current Interest Rate | Exit Fee | Acquisition Date | Maturity Date | Principal Amount | Amortized Cost | Fair Value (1) | Pro Rata Fair Value (2) | % (3) | ||||||||||||||||||||||||||
Loans held for investment: | ||||||||||||||||||||||||||||||||||||||
Preferred equity investments: | ||||||||||||||||||||||||||||||||||||||
370 Lex Part Deux, LLC (7)(8) | US - NY | Office | LIBOR + 8.25% (2.44% Floor) | 10.7 | % | 0 | % | 12/17/2018 | 1/9/2022 | $ | 55,327,153 | $ | 55,355,545 | $ | 53,455,746 | $ | 40,893,646 | 17.5 | % | |||||||||||||||||||
Orange Grove Property Investors, LLC (7)(8) | US - CA | Multifamily | LIBOR + 8.0% (4.0% Floor) | 12.0 | % | 1.0 | % | 5/24/2018 | 6/1/2021 | 10,600,000 | 10,703,482 | 10,703,776 | 8,188,389 | 3.5 | % | |||||||||||||||||||||||
REEC Harlem Holdings Company, LLC (9) | US - NY | Mixed use | LIBOR + 12.5% (no Floor) | 12.6 | % | 0 | % | 3/9/2018 | 3/9/2023 | 16,512,842 | 16,512,842 | 13,817,239 | 10,570,188 | 4.5 | % | |||||||||||||||||||||||
RS JZ Driggs, LLC (7)(8)(10) | US - NY | Multifamily | 12.3 | % | 12.3 | % | 1.0 | % | 5/1/2018 | 1/1/2021 | 8,981,615 | 9,071,429 | 9,026,292 | 6,905,113 | 3.0 | % | ||||||||||||||||||||||
The Bristol at Southport, LLC (7)(11) | US - WA | Multifamily | 12.0 | % | 12.0 | % | 1.0 | % | 9/22/2017 | 9/22/2022 | 23,500,000 | 23,688,144 | 23,664,725 | 18,103,515 | 7.7 | % | ||||||||||||||||||||||
114,921,610 | 115,331,442 | 110,667,778 | 84,660,851 | 36.2 | % | |||||||||||||||||||||||||||||||||
First mortgages: | ||||||||||||||||||||||||||||||||||||||
14th & Alice Street Owner, LLC (7)(11) | US - CA | Multifamily | LIBOR + 5.75% (3.25% Floor) | 9.0 | % | 0.5 | % | 3/5/2019 | 3/5/2022 | 36,558,763 | 36,837,952 | 36,537,911 | 27,951,502 | 11.9 | % | |||||||||||||||||||||||
1389 Peachtree St, LP; 1401 Peachtree St, LP; 1409 Peachtree St, LP (12) | US - GA | Office | LIBOR + 4.5% (no Floor) | 4.6 | % | 0.5 | % | 2/22/2019 | 2/10/2022 | 51,649,149 | 51,917,594 | 51,814,815 | 39,638,333 | 16.9 | % | |||||||||||||||||||||||
330 Tryon DE LLC (12) | US - NC | Office | LIBOR + 3.85% (2.51% Floor) | 6.4 | % | 0.5 | % | 2/7/2019 | 3/1/2022 | 22,800,000 | 22,903,897 | 22,892,124 | 17,512,475 | 7.5 | % | |||||||||||||||||||||||
870 Santa Cruz, LLC | US - CA | Office | LIBOR + 6.75% (0.5% Floor) | 7.3 | % | 1.0 | % | 12/15/2020 | 12/15/2023 | 11,867,818 | 11,863,875 | 11,979,443 | 9,164,274 | 3.9 | % | |||||||||||||||||||||||
AGRE DCP Palm Springs, LLC (12)(13) | US - CA | Hotel - full/ select service | LIBOR +5.0% (1.80% Floor) | 6.8 | % | 1.5 | % | 12/12/2019 | 1/1/2024 | 43,222,382 | 43,775,181 | 43,864,855 | 33,556,614 | 14.4 | % | |||||||||||||||||||||||
MSC Fields Peachtree Retreat, LLC (12) | US - GA | Multifamily | LIBOR + 3.85% (2.0% Floor) | 5.9 | % | 0.5 | % | 3/15/2019 | 4/1/2022 | 23,308,334 | 23,434,926 | 23,421,439 | 17,917,401 | 7.7 | % | |||||||||||||||||||||||
Patrick Henry Recovery Acquisition, LLC (12) | US - CA | Office | LIBOR + 2.95% (1.5% Floor) | 4.5 | % | 0.3 | % | 11/25/2019 | 12/1/2023 | 18,000,000 | 18,039,903 | 18,030,565 | 13,793,382 | 5.9 | % | |||||||||||||||||||||||
University Park Berkeley, LLC (12)(14) | US - CA | Multifamily | LIBOR + 4.2% (1.50% Floor) | 5.7 | % | 0.8 | % | 2/27/2020 | 3/1/2023 | 24,709,132 | 24,863,082 | 24,877,473 | 19,031,267 | 8.1 | % | |||||||||||||||||||||||
Windy Hill PV Five CM, LLC (15) | US - CA | Office | LIBOR + 6.0% (2.05% Floor) | 8.1 | % | 0.5 | % | 9/20/2019 | 9/20/2022 | 31,883,812 | 31,936,652 | 30,679,466 | 23,469,791 | 10.0 | % | |||||||||||||||||||||||
263,999,390 | 265,573,062 | 264,098,091 | 202,035,039 | 86.3 | % | |||||||||||||||||||||||||||||||||
Total gross loans held for investment | 407,730,308 | 410,083,649 | 403,467,280 | 308,652,469 | 131.9 | % | ||||||||||||||||||||||||||||||||
Obligations under participation agreements and secured borrowing (7)(8)(11)(15) | (93,310,285) | (93,596,454) | (91,599,071) | (70,073,289) | (30.0) | % | ||||||||||||||||||||||||||||||||
Allowance for loan losses | — | (4,014,778) | — | — | — | % | ||||||||||||||||||||||||||||||||
Net loans held for investment | $ | 314,420,023 | $ | 312,472,417 | $ | 311,868,209 | $ | 238,579,180 | 101.9 | % |
Collateral Location | Portfolio Company | Structure | Property Type | Coupon Rate | Acquisition Date | Maturity Date | Principal Amount | Amortized Cost | Fair Value (1) | % of Net Assets (2) | ||||||||
Loans held for investment — non-controlled: | ||||||||||||||||||
US - NY | Cape Church Mezz, LLC (3)(4)(5) | Mezzanine loan | Multifamily | 12.0 | % | 3/15/2016 | 7/15/2019 | $ | 16,663,302 | $ | 16,797,445 | $ | 16,730,367 | 6.0 | % | |||
140 Schermerhorn Street Mezz LLC (5)(6) | Mezzanine loan | Hotel | 12.0 | % | 11/16/2016 | 12/1/2019 | 15,000,000 | 15,115,355 | 15,130,717 | 5.5 | % | |||||||
575 CAD I LLC | Mezzanine loan | Land | 12.0% current 2.5% PIK | 1/31/2017 | 8/1/2019 | 9,280,360 | 9,350,309 | 9,352,034 | 3.4 | % | ||||||||
WWML96MEZZ, LLC | Mezzanine loan | Multifamily | 13.0 | % | 12/18/2015 | 12/31/2018 | 7,687,862 | 7,753,121 | 7,767,565 | 2.8 | % | |||||||
WWML96, LLC | Preferred equity investment | Multifamily | 13.0 | % | 12/18/2015 | 12/31/2018 | 1,438,384 | 1,450,594 | 1,447,064 | 0.5 | % | |||||||
Total US - NY | 50,069,908 | 50,466,824 | 50,427,747 | 18.2 | % | |||||||||||||
US - OR | Pollin Hotels PDX Mezzanine, LLC (4)(5) | Mezzanine loan | Hotel | 13.0 | % | 9/23/2013 | 10/6/2018 | 5,000,000 | 5,225,052 | 5,240,101 | 1.9 | % | ||||||
US - PA | Millennium Waterfront Associates, L.P. | First mortgage | Land | 12.0 | % | 7/2/2015 | 12/29/2017 | 14,150,000 | 14,291,500 | 14,290,080 | 5.2 | % | ||||||
US - SC | High Pointe Mezzanine Investments, LLC (4)(5) | Mezzanine loan | Student housing | 13.0 | % | 12/27/2013 | 1/6/2024 | 3,000,000 | 3,396,889 | 3,428,790 | 1.2 | % | ||||||
US - TN | Kingsport 925-Mezz LLC (4)(5) | Mezzanine loan | Multifamily | 13.0 | % | 1/6/2014 | 12/5/2018 | 3,000,000 | 3,138,451 | 3,120,351 | 1.1 | % | ||||||
US - TX | Northland Museo Member, LLC (4)(5) | Mezzanine loan | Multifamily | 12.0 | % | 11/22/2013 | 12/6/2018 | 4,000,000 | 3,967,600 | 4,072,570 | 1.5 | % | ||||||
Austin H. I. Owner LLC (3)(5) | Mezzanine loan | Hotel | 12.5 | % | 9/30/2015 | 10/6/2020 | 3,500,000 | 3,523,928 | 3,539,140 | 1.3 | % | |||||||
AHF-Heritage #1, LLC | Mezzanine loan | Multifamily | 14.0 | % | 7/30/2012 | 8/11/2022 | 2,689,038 | 2,919,386 | 2,729,307 | 1.0 | % | |||||||
Total US - TX | 10,189,038 | 10,410,914 | 10,341,017 | 3.8 | % | |||||||||||||
US - UT | NB Factory JV, LLC (5)(6) | Preferred equity investment | Student housing | 15.0 | % | 6/29/2017 | 6/26/2020 | 3,595,670 | 3,595,670 | 3,595,670 | 1.2 | % | ||||||
US - WA | The Bristol at Southport, LLC (5)(9) | Preferred equity investment | Multifamily | 10.0% current 2.0% PIK | 9/22/2017 | 10/1/2022 | 22,500,000 | 22,623,164 | 22,685,693 | 8.2 | % | |||||||
US - Various | Nelson Brothers Professional Real Estate, LLC (7) | Facility | Various | 15.0 | % | 8/31/2016 | 1/27/2018 | 8,000,000 | 8,080,000 | 8,078,999 | 2.9 | % | ||||||
Total loans held for investment — non-controlled: | 325,986,129 | 330,071,076 | 330,082,971 | 119.1 | % | |||||||||||||
Loan held for investment through participation interest — non-controlled (10): | ||||||||||||||||||
US - PA | KOP Hotel XXXI Mezz LP (3)(5) | Participation in mezzanine loan | Hotel | 13.0 | % | 11/24/2015 | 12/6/2022 | 1,800,000 | 1,804,562 | 1,820,502 | 0.7 | % | ||||||
Total loan held for investment through participation interest — non-controlled | 1,800,000 | 1,804,562 | 1,820,502 | 0.7 | % | |||||||||||||
Total gross loans held for investment | 327,786,129 | 331,875,638 | 331,903,473 | 119.7 | % | |||||||||||||
Obligations under participation agreements (3)(4)(6)(9)(10) | (70,020,950 | ) | (70,992,661 | ) | (70,910,091 | ) | (25.6 | )% | ||||||||||
Net loans held for investment | $ | 257,765,179 | $ | 260,882,977 | $ | 260,993,382 | 94.1 | % |
Operating real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Description | Acquisition Date | Fair Value of Real Estate (1) | Encumbrance | Net Investment | Pro Rata Net Investment (2) | % (3)(18) | ||||||||||||||||||||||||||||||||||||||||||||
Multi-tenant office building in Santa Monica, CA (16) | 7/30/2018 | $ | 57,321,799 | $ | 40,596,980 | $ | 16,724,819 | $ | 12,794,487 | 5.5 | % | |||||||||||||||||||||||||||||||||||||||
Land in Conshohocken, PA (17) | 1/9/2019 | 13,395,430 | 0 | 13,395,430 | 10,247,504 | 4.4 | % | |||||||||||||||||||||||||||||||||||||||||||
$ | 70,717,229 | $ | 40,596,980 | $ | 30,120,249 | $ | 23,041,991 | 9.9 | % | |||||||||||||||||||||||||||||||||||||||||
Portfolio Company | Dividend Yield | Acquisition Date | Maturity Date | Shares | Cost | Fair Value | Pro Rata Fair Value (2) | % (3) | ||||||||||||||||||||||||||||||||||||||||||
Marketable securities (19): | ||||||||||||||||||||||||||||||||||||||||||||||||||
Common and preferred shares: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Nexpoint Real Estate Finance, Inc. - Cumulative Series A Preferred Shares | 8.5 | % | 7/30/2020 | 7/24/2025 | 50,000 | $ | 1,176,006 | $ | 1,305,000 | $ | 998,325 | 0.4 | % | |||||||||||||||||||||||||||||||||||||
Blackstone Mortgage Trust, Inc. - Class A common shares | 7.6 | % | 3/11/2021 | N/A | 110,100 | 3,489,396 | 3,413,100 | 2,611,022 | 1.1 | % | ||||||||||||||||||||||||||||||||||||||||
Starwood Property Trust, Inc. - Common Shares | 7.6 | % | 3/11/2021 | N/A | 62,000 | 1,489,692 | 1,533,880 | 1,173,418 | 0.5 | % | ||||||||||||||||||||||||||||||||||||||||
Total marketable securities | $ | 6,155,094 | $ | 6,251,980 | $ | 4,782,765 | 2.00 | % |
Collateral Location | Portfolio Company | Structure | Property Type | Coupon Rate | Acquisition Date | Maturity Date | Principal Amount | Amortized Cost | Fair Value (1) | % of Net Assets (2) | ||||||||
Loans held for investment — non-controlled: | ||||||||||||||||||
US - AL | ASA Mgt. Holdings, LLC | Preferred equity investment | Multifamily | 15.0 | % | 4/7/2012 | 8/1/2022 | $ | 2,100,000 | $ | 2,145,498 | $ | 2,120,737 | 0.7 | % | |||
SVA Mgt. Holdings, LLC | Preferred equity investment | Multifamily | 15.0 | % | 4/7/2012 | 8/1/2022 | 1,600,000 | 1,637,463 | 1,615,800 | 0.6 | % | |||||||
Total US - AL | 3,700,000 | 3,782,961 | 3,736,537 | 1.3 | % | |||||||||||||
US - CA | Palmer City-Core Stockton Street, LLC | Preferred equity investment | Hotel | 12.0 | % | 1/17/2014 | 12/17/2017 | 4,325,000 | 4,368,250 | 4,369,096 | 1.5 | % | ||||||
Encino Courtyard Mezzanine, LLC (3) | Mezzanine loan | Retail | 13.5 | % | 12/19/2012 | 1/6/2023 | 2,500,000 | 2,609,852 | 2,529,828 | 0.9 | % | |||||||
Maguire Partners-1733 Ocean, LLC | First mortgage | Office | LIBOR+8.5% | 3/7/2016 | 3/9/2018 | 50,450,061 | 50,902,766 | 50,924,056 | 17.4 | % | ||||||||
L.A. Warner Hotel Partners, LLC (4)(5) | Preferred equity investment | Hotel | 13.3 | % | 7/25/2014 | 8/4/2017 | 20,000,000 | 20,579,513 | 20,201,344 | 7.0 | % | |||||||
SD Carmel Hotel Partners, LLC (3)(4)(5) | Preferred equity investment | Hotel | 12.0 | % | 3/13/2015 | 1/31/2017 | 6,000,000 | 6,059,398 | 6,059,398 | 2.1 | % | |||||||
TSG-Parcel 1, LLC (4)(5)(6) | First mortgage | Land | 12.0 | % | 7/10/2015 | 4/10/2017 | 18,000,000 | 18,180,000 | 18,178,193 | 6.3 | % | |||||||
Total US - CA | 101,275,061 | 102,699,779 | 102,261,915 | 35.2 | % | |||||||||||||
US - DE | BPG Office Partners III/IV LLC (4)(5) | Mezzanine loan | Office | 13.0 | % | 6/5/2015 | 6/5/2018 | 10,000,000 | 10,082,308 | 10,123,340 | 3.5 | % | ||||||
US - FL | Beach Resort Management, LLC | Mezzanine loan | Hotel | 13.0 | % | 7/16/2012 | 8/1/2017 | 4,500,000 | 4,518,850 | 4,517,228 | 1.6 | % | ||||||
CGI Mezz 55MM, LLC (3)(4)(5) | Mezzanine loan | Mixed use | 12.0% current 2.0% PIK | 8/21/2014 | 9/6/2019 | 3,593,947 | 3,619,217 | 3,610,816 | 1.2 | % | ||||||||
1100 Biscayne Management Holdco, LLC (4)(5) | Mezzanine loan | Hotel | 12.0% current 3.0% PIK | 4/24/2015 | 10/9/2017 | 15,359,671 | 15,488,644 | 15,257,412 | 5.2 | % | ||||||||
Caton Mezz, LLC (3)(4)(5) | Mezzanine loan | Office | 12.0% current 2.0% PIK | 7/27/2015 | 1/27/2017 | 5,160,404 | 5,210,404 | 5,189,222 | 1.8 | % | ||||||||
37 Gables Member LLC | Mezzanine loan | Multifamily | 13.0 | % | 6/16/2016 | 6/16/2019 | 5,750,000 | 5,791,644 | 5,797,477 | 2.0 | % | |||||||
Greystone Gables Holdings Member LLC | Preferred equity investment | Multifamily | 13.0 | % | 6/16/2016 | 6/16/2019 | 500,000 | 503,621 | 504,128 | 0.2 | % | |||||||
RS JZ 2700 NW2, LLC | First mortgage | Land | 12.0 | % | 9/1/2016 | 12/1/2017 | 19,620,000 | 19,795,534 | 19,800,927 | 6.8 | % | |||||||
Total US - FL | 54,484,022 | 54,927,914 | 54,677,210 | 18.8 | % | |||||||||||||
US - GA | YMP Georgia Portfolio Mezzanine, LLC | Mezzanine loan | Multifamily | 14.0 | % | 12/19/2013 | 1/6/2019 | 4,250,000 | 4,604,941 | 4,387,683 | 1.5 | % | ||||||
US - IN | Muncie Mezz, LLC | Mezzanine loan | Student housing | 13.0 | % | 8/29/2013 | 9/6/2023 | 2,700,000 | 2,683,938 | 3,039,674 | 1.0 | % | ||||||
US - MA | Phoenix CR 2012A, LLC, Phoenix CR 2012B, LLC, & Phoenix CR 2012C, LLC | Mezzanine loan | Multifamily | 12.0 | % | 7/27/2012 | 8/11/2022 | 4,000,000 | 4,112,275 | 4,071,618 | 1.4 | % |
Portfolio Company | Collateral Location | Property Type | Coupon Rate | Current Interest Rate | Exit Fee | Acquisition Date | Maturity Date | Principal Amount | Amortized Cost | Fair Value (1) | Pro Rata Fair Value (2) | % (3) | ||||||||||||||||||||||||||
Loans held for investment: | ||||||||||||||||||||||||||||||||||||||
Mezzanine loans: | ||||||||||||||||||||||||||||||||||||||
150 Blackstone River Road, LLC | US - MA | Industrial | 8.5 | % | 8.5 | % | 0 | % | 9/21/2017 | 9/6/2027 | $ | 7,000,000 | $ | 7,000,000 | $ | 7,007,397 | $ | 5,360,659 | 2.3 | % | ||||||||||||||||||
Austin H. I. Owner LLC (4) | US - TX | Hotel | 12.5 | % | 12.5 | % | 1.0 | % | 9/30/2015 | 10/6/2020 | 3,848,712 | 3,887,200 | 3,533,118 | 2,702,835 | 1.1 | % | ||||||||||||||||||||||
High Pointe Mezzanine Investments, LLC (5) | US - SC | Student housing | 15.0 | % | 15.0 | % | 1.0 | % | 12/27/2013 | 1/6/2024 | 3,000,000 | 3,204,375 | 2,988,110 | 2,285,904 | 1.0 | % | ||||||||||||||||||||||
LD Milipitas Mezz, LLC (6) | US - CA | Hotel | LIBOR +10.25% (2.75% Floor) | 13.0 | % | 1.0 | % | 6/27/2018 | 6/27/2021 | 4,250,000 | 4,294,053 | 4,293,969 | 3,284,886 | 1.4 | % | |||||||||||||||||||||||
Stonewall Station Mezz LLC (5)(7)(8) | US - NC | Infill land | 12.0% current 2.0% PIK | 14.0 | % | 1.0 | % | 5/31/2018 | 5/20/2021 | 10,442,567 | 10,537,512 | 10,472,034 | 8,011,106 | 3.4 | % | |||||||||||||||||||||||
28,541,279 | 28,923,140 | 28,294,628 | 21,645,390 | 9.2 | % | |||||||||||||||||||||||||||||||||
Preferred equity investments: | ||||||||||||||||||||||||||||||||||||||
370 Lex Part Deux, LLC (7)(8) | US - NY | Office | LIBOR + 8.25% (2.44% Floor) | 10.7 | % | 0 | % | 12/17/2018 | 1/9/2022 | 53,874,507 | 53,912,363 | 51,935,025 | 39,730,294 | 16.9 | % | |||||||||||||||||||||||
City Gardens 333 LLC (7)(8) | US - CA | Student housing | LIBOR + 9.95% (2.0% Floor) | 12.0 | % | 0 | % | 4/11/2018 | 4/1/2021 | 28,303,628 | 28,307,408 | 28,276,767 | 21,631,727 | 9.2 | % | |||||||||||||||||||||||
Orange Grove Property Investors, LLC (7)(8) | US - CA | Condominium | LIBOR + 8.0% (4.0% Floor) | 12.0 | % | 1.0 | % | 5/24/2018 | 6/1/2021 | 10,600,000 | 10,701,924 | 10,707,274 | 8,191,065 | 3.5 | % | |||||||||||||||||||||||
REEC Harlem Holdings Company, LLC | US - NY | land | LIBOR + 12.5% (no Floor) | 12.6 | % | 0 | % | 3/9/2018 | 3/9/2023 | 16,767,984 | 16,767,984 | 14,314,585 | 10,950,658 | 4.7 | % | |||||||||||||||||||||||
RS JZ Driggs, LLC (7)(8)(9) | US - NY | Multifamily | 12.3 | % | 12.3 | % | 1.0 | % | 5/1/2018 | 1/1/2021 | 8,544,513 | 8,629,929 | 8,612,869 | 6,588,845 | 2.8 | % | ||||||||||||||||||||||
The Bristol at Southport, LLC (7)(10) | US - WA | Multifamily | 12.0 | % | 12.0 | % | 1.0 | % | 9/22/2017 | 9/22/2022 | 23,500,000 | 23,682,536 | 23,670,806 | 18,108,167 | 7.6 | % | ||||||||||||||||||||||
141,590,632 | 142,002,144 | 137,517,326 | 105,200,756 | 44.7 | % |
Portfolio Company | Collateral Location | Property Type | Coupon Rate | Current Interest Rate | Exit Fee | Acquisition Date | Maturity Date | Principal Amount | Amortized Cost | Fair Value (1) | Pro Rata Fair Value (2) | % (3) | ||||||||||||||||||||||||||
Loans held for investment: | ||||||||||||||||||||||||||||||||||||||
First mortgages: | ||||||||||||||||||||||||||||||||||||||
14th & Alice Street Owner, LLC (7)(10) | US - CA | Multifamily | LIBOR + 5.75% (3.25% Floor) | 9.0 | % | 0.5 | % | 3/5/2019 | 3/5/2022 | $ | 32,625,912 | $ | 32,877,544 | $ | 32,551,137 | $ | 24,901,620 | 10.6 | % | |||||||||||||||||||
1389 Peachtree St, LP; 1401 Peachtree St, LP; 1409 Peachtree St, LP (11) | US - GA | Office | LIBOR + 4.5% (no Floor) | 4.6 | % | 0.5 | % | 2/22/2019 | 2/10/2022 | 50,808,453 | 51,068,554 | 50,982,247 | 39,001,419 | 16.6 | % | |||||||||||||||||||||||
330 Tryon DE LLC (11) | US - NC | Office | LIBOR + 3.85% (2.51% Floor) | 6.4 | % | 0.5 | % | 2/7/2019 | 3/1/2022 | 22,800,000 | 22,901,294 | 22,869,879 | 17,495,457 | 7.4 | % | |||||||||||||||||||||||
870 Santa Cruz, LLC | US - CA | Office | LIBOR + 6.75% (0.5% Floor) | 7.3 | % | 1.0 | % | 12/15/2020 | 12/15/2023 | 10,760,355 | 10,724,590 | 10,859,726 | 8,307,690 | 3.5 | % | |||||||||||||||||||||||
AGRE DCP Palm Springs, LLC (11)(12) | US - CA | Hotel | LIBOR +4.75% (1.80% Floor) | 6.6 | % | 0.5 | % | 12/12/2019 | 1/1/2023 | 45,294,097 | 45,506,051 | 45,519,030 | 34,822,058 | 14.8 | % | |||||||||||||||||||||||
MSC Fields Peachtree Retreat, LLC (11) | US - GA | Multifamily | LIBOR + 3.85% (2.0% Floor) | 5.9 | % | 0.5 | % | 3/15/2019 | 4/1/2022 | 23,308,334 | 23,437,198 | 23,428,860 | 17,923,078 | 7.6 | % | |||||||||||||||||||||||
Patrick Henry Recovery Acquisition, LLC (11) | US - CA | Office | LIBOR + 2.95% (1.5% Floor) | 4.5 | % | 0.3 | % | 11/25/2019 | 12/1/2023 | 18,000,000 | 18,039,456 | 17,994,495 | 13,765,789 | 5.8 | % | |||||||||||||||||||||||
University Park Berkeley, LLC (11)(13) | US - CA | Student housing | LIBOR + 4.2% (1.50% Floor) | 5.7 | % | 0.8 | % | 2/27/2020 | 3/1/2023 | 23,990,786 | 24,131,808 | 24,162,710 | 18,484,473 | 7.9 | % | |||||||||||||||||||||||
Windy Hill PV Five CM, LLC (14) | US - CA | Office | LIBOR + 6.0% (2.05% Floor) | 8.1 | % | 0.5 | % | 9/20/2019 | 9/20/2022 | 26,454,910 | 26,407,494 | 25,227,156 | 19,298,774 | 8.2 | % | |||||||||||||||||||||||
254,042,847 | 255,093,989 | 253,595,240 | 194,000,358 | 82.4 | % | |||||||||||||||||||||||||||||||||
Total gross loans held for investment | 424,174,758 | 426,019,273 | 419,407,194 | 320,846,504 | 136.3 | % | ||||||||||||||||||||||||||||||||
Obligations under participation agreements and secured borrowing (7)(8)(10)(14) | (89,548,151) | (89,769,560) | (87,730,239) | (67,113,633) | (28.5) | % | ||||||||||||||||||||||||||||||||
Allowance for loan losses | — | (3,738,758) | — | — | — | % | ||||||||||||||||||||||||||||||||
Net loans held for investment | $ | 334,626,607 | $ | 332,510,955 | $ | 331,676,955 | $ | 253,732,871 | 107.8 | % |
Collateral Location | Portfolio Company | Structure | Property Type | Coupon Rate | Acquisition Date | Maturity Date | Principal Amount | Amortized Cost | Fair Value (1) | % of Net Assets (2) | ||||||||
Loans held for investment — non-controlled: | ||||||||||||||||||
US - NC | Milestone Greensboro Holdings, LLC | Mezzanine loan | Hotel | 14.0 | % | 3/1/2013 | 3/1/2018 | $ | 3,500,000 | $ | 3,551,028 | $ | 3,550,732 | 1.2 | % | |||
US - NJ | Essence 144 Urban Renewal, LLC | First mortgage | Multifamily | 12.0 | % | 1/14/2015 | 3/14/2017 | 22,639,955 | 22,865,291 | 22,864,082 | 7.9 | % | ||||||
US - NY | Cape Church Mezz, LLC | Mezzanine loan | Multifamily | 12.0 | % | 3/15/2016 | 7/15/2019 | 15,207,664 | 15,323,482 | 15,341,724 | 5.3 | % | ||||||
140 Schermerhorn Street Mezz LLC | Mezzanine loan | Hotel | 12.0 | % | 11/16/2016 | 12/1/2019 | 15,000,000 | 15,105,343 | 15,118,900 | 5.2 | % | |||||||
WWML96MEZZ, LLC | Mezzanine loan | Multifamily | 13.0 | % | 12/18/2015 | 12/31/2018 | 4,075,585 | 4,106,941 | 4,104,596 | 1.4 | % | |||||||
WWML96, LLC | Preferred equity investment | Multifamily | 13.0 | % | 12/18/2015 | 12/31/2018 | 1,303,583 | 1,313,612 | 1,281,507 | 0.4 | % | |||||||
Total US - NY | 35,586,832 | 35,849,378 | 35,846,727 | 12.3 | % | |||||||||||||
US - OR | Pollin Hotels PDX Mezzanine, LLC | Mezzanine loan | Hotel | 13.0 | % | 9/23/2013 | 10/6/2018 | 5,000,000 | 5,356,923 | 5,324,812 | 1.8 | % | ||||||
US - PA | PHL Hotel Partners, LLC | Preferred equity investment | Hotel | 13.0 | % | 10/8/2013 | 11/1/2017 | 3,742,000 | 3,779,420 | 3,772,758 | 1.3 | % | ||||||
Millennium Waterfront Associates, L.P. | First mortgage | Land | 12.0 | % | 7/2/2015 | 1/2/2017 | 13,980,000 | 14,119,800 | 14,118,397 | 4.9 | % | |||||||
Total US - PA | 17,722,000 | 17,899,220 | 17,891,155 | 6.2 | % | |||||||||||||
US - SC | High Pointe Mezzanine Investments, LLC | Mezzanine loan | Student housing | 13.0 | % | 12/27/2013 | 1/6/2024 | 3,000,000 | 3,441,697 | 3,176,165 | 1.1 | % | ||||||
US - TN | Kingsport 925-Mezz LLC | Mezzanine loan | Multifamily | 13.0 | % | 1/6/2014 | 12/5/2018 | 3,000,000 | 3,208,266 | 3,111,362 | 1.1 | % | ||||||
315 JV, LLC (6) | Mezzanine loan | Office | 12.0% current 3.0% PIK | 11/15/2013 | 5/28/2017 | 6,877,843 | 6,971,219 | 6,935,693 | 2.4 | % | ||||||||
Total US - TN | 9,877,843 | 10,179,485 | 10,047,055 | 3.5 | % | |||||||||||||
US - TX | Northland Museo Member, LLC | Mezzanine loan | Multifamily | 12.0 | % | 11/22/2013 | 12/6/2018 | 4,000,000 | 3,946,771 | 4,051,342 | 1.4 | % | ||||||
Austin H. I. Owner LLC (4)(5) | Mezzanine loan | Hotel | 12.5 | % | 9/30/2015 | 10/6/2020 | 3,500,000 | 3,521,769 | 3,549,105 | 1.2 | % | |||||||
AHF-Heritage #1, LLC | Mezzanine loan | Multifamily | 14.0 | % | 7/30/2012 | 8/11/2022 | 2,689,038 | 2,951,669 | 2,794,286 | 1.0 | % | |||||||
Total US - TX | 10,189,038 | 10,420,209 | 10,394,733 | 3.6 | % | |||||||||||||
US - Various | Capital Square Realty Advisors, LLC | Facility | Various | 13%-14% | 12/17/2013 | 7/29/2017 | 15,500,000 | 15,643,328 | 15,643,328 | 5.4 | % | |||||||
Nelson Brothers Professional Real Estate, LLC | Facility | Various | 15.0 | % | 8/31/2016 | 7/27/2017 | 8,000,000 | 8,073,342 | 8,073,342 | 2.8 | % | |||||||
Total US - Various | 23,500,000 | 23,716,670 | 23,716,670 | 8.2 | % | |||||||||||||
Total loans held for investment — non-controlled: | 311,424,751 | 316,174,017 | 315,110,108 | 108.5 | % |
Operating real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Description | Acquisition Date | Fair Value of Real Estate | Encumbrance | Net Investment | Pro Rata Net Investment (2) | % (3)(17) | ||||||||||||||||||||||||||||||||||||||||||||
Multi-tenant office building in Santa Monica, CA (15) | 7/30/2018 | $ | 57,321,799 | $ | 44,020,225 | $ | 13,301,574 | $ | 10,175,704 | 4.3 | % | |||||||||||||||||||||||||||||||||||||||
Land in Conshohocken, PA (16) | 1/9/2019 | 13,395,430 | 0 | 13,395,430 | 10,247,504 | 4.4 | % | |||||||||||||||||||||||||||||||||||||||||||
$ | 70,717,229 | $ | 44,020,225 | $ | 26,697,004 | $ | 20,423,208 | 8.7 | % | |||||||||||||||||||||||||||||||||||||||||
Portfolio Company | Interest/Dividend Rate | Acquisition Date | Maturity Date | Shares | Cost | Fair Value | Pro Rata Fair Value (2) | % (3) | ||||||||||||||||||||||||||||||||||||||||||
Marketable securities (18): | ||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred shares: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Nexpoint Real Estate Finance, Inc. - Cumulative Series A Preferred Shares | 8.50 | % | 7/30/2020 | 7/24/2025 | 50,000 | $ | 1,176,006 | $ | 1,287,500 | $ | 984,938 | 0.42 | % | |||||||||||||||||||||||||||||||||||||
Total marketable securities | $ | 1,176,006 | $ | 1,287,500 | $ | 984,938 | 0.42 | % |
Collateral Location | Portfolio Company | Structure | Property Type | Coupon Rate | Acquisition Date | Maturity Date | Principal Amount | Amortized Cost | Fair Value (1) | % of Net Assets (2) | ||||||||
Loans held for investment through participation interests — non-controlled (7): | ||||||||||||||||||
US - NY | QPT 24th Street Mezz LLC (4)(5) | Participation in mezzanine loan | Land | 12.0% current 2.0% PIK | 12/15/2015 | 6/15/2017 | 12,780,220 | 12,897,391 | 12,897,392 | 4.5 | % | |||||||
US - PA | KOP Hotel XXXI Mezz LP (4)(5) | Participation in mezzanine loan | Hotel | 13.0 | % | 11/24/2015 | 12/6/2022 | 1,800,000 | 1,804,135 | 1,847,839 | 0.6 | % | ||||||
Total loans held for investment through participation interest — non-controlled | 14,580,220 | 14,701,526 | 14,745,231 | 5.1 | % | |||||||||||||
Total gross loans held for investment | 326,004,971 | 330,875,543 | 329,855,339 | 113.6 | % | |||||||||||||
Obligations under participation agreements (4)(6) | (32,635,785 | ) | (32,986,194 | ) | (32,904,955 | ) | (11.3 | )% | ||||||||||
Net loans held for investment | $ | 293,369,186 | $ | 297,889,349 | $ | 296,950,384 | 102.3 | % |
March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||
Investment | Cost | Fair Value | % of Members’ Capital | Cost | Fair Value | % of Members’ Capital | ||||||||||||||||||||||||||||||||
87.6% interest in Terra JV, LLC | $ | 229,062,384 | $ | 233,997,676 | 100.0 | % | $ | 230,915,151 | $ | 235,357,977 | 100.0 | % |
September 30, 2017 | December 31, 2016 | |||||||||||||||||||||
Investment | Cost | Fair Value | % of Net Assets | Cost | Fair Value | % of Net Assets | ||||||||||||||||
14,912,990 common shares of Terra Property Trust, Inc. | $ | 277,456,081 | $ | 277,326,857 | 100.1 | % | $ | 291,468,567 | $ | 290,419,317 | 100.3 | % |
March 31, 2021 | December 31, 2020 | |||||||||||||
Carrying value of loans held for investment | $ | 406,068,871 | $ | 422,280,515 | ||||||||||
Equity investment in a limited partnership, net | 50,505,511 | 36,259,959 | ||||||||||||
Real estate owned, net | 72,242,825 | 73,178,939 | ||||||||||||
Cash, cash equivalent and restricted cash | 27,600,059 | 32,920,323 | ||||||||||||
Other assets | 29,380,759 | 23,837,445 | ||||||||||||
Total assets | 585,798,025 | 588,477,181 | ||||||||||||
Term loan payable, obligations under participation agreements, mortgage loan payable, revolving line of credit and secured borrowing | (245,967,816) | (239,132,654) | ||||||||||||
Accounts payable, accrued expenses and other liabilities | (28,798,305) | (35,769,686) | ||||||||||||
Lease intangible liabilities | (10,128,244) | (10,249,776) | ||||||||||||
Total liabilities | (284,894,365) | (285,152,116) | ||||||||||||
Stockholder’s equity | $ | 300,903,660 | $ | 303,325,065 |
September 30, 2017 | December 31, 2016 | |||||||
Carrying value of investments | $ | 331,875,638 | $ | 330,683,840 | ||||
Other assets | 79,469,290 | 53,966,401 | ||||||
Total assets | 411,344,928 | 384,650,241 | ||||||
Mortgage loan payable and obligations under participation agreements | (105,051,385 | ) | (66,855,038 | ) | ||||
Accounts payable, accrued expenses and other liabilities | (28,725,822 | ) | (26,203,277 | ) | ||||
Total liabilities | (133,777,207 | ) | (93,058,315 | ) | ||||
Stockholder’s equity | $ | 277,567,721 | $ | 291,591,926 |
Three Months Ended March 31, | ||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||
Revenues | $ | 10,289,252 | $ | 12,077,571 | ||||||||||||||||
Expenses | (10,136,375) | (11,188,049) | ||||||||||||||||||
Net loss on extinguishment of obligations under participation agreements | 0 | (319,453) | ||||||||||||||||||
Realized gains on marketable securities | 0 | 8,894 | ||||||||||||||||||
Unrealized losses on marketable securities | (14,608) | 0 | ||||||||||||||||||
Equity income from investment in a limited partnership | 1,337,827 | $ | 0 | |||||||||||||||||
Net income | $ | 1,476,096 | $ | 578,963 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Revenues | $ | 9,651,677 | $ | 14,408,350 | $ | 28,197,274 | $ | 37,395,488 | ||||||||
Expenses | (4,598,716 | ) | (4,584,017 | ) | (12,379,894 | ) | (12,493,517 | ) | ||||||||
Realized gain on investments | (604,169 | ) | — | (114,209 | ) | 140,375 | ||||||||||
Net income | $ | 4,448,792 | $ | 9,824,333 | $ | 15,703,171 | $ | 25,042,346 |
March 31, 2021 | |||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Investment: | |||||||||||||||||||||||
Equity investment in Terra JV | $ | 0 | $ | 0 | $ | 233,997,676 | $ | 233,997,676 |
September 30, 2017 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements | |||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||
Investment: | Investment: | |||||||||||||||||||||||||||||||||||||
Equity investment in Terra Property Trust | $ | — | $ | — | $ | 277,326,857 | $ | 277,326,857 | ||||||||||||||||||||||||||||||
Equity investment in Terra JV | Equity investment in Terra JV | $ | 0 | $ | 0 | $ | 235,357,977 | $ | 235,357,977 |
December 31, 2016 | |||||||||||||||
Fair Value Measurements | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Investment: | |||||||||||||||
Equity investment in Terra Property Trust | $ | — | $ | — | $ | 290,419,317 | $ | 290,419,317 |
Equity Investment in Terra JV | Equity Investment in Terra Property Trust | ||||||||||||||||
Three Months Ended March 31, 2021 | Period from March 2, 2020 to March 31, 2020 | Period from January 1, 2020 to March 1, 2020 | |||||||||||||||
Beginning balance | $ | 235,357,977 | $ | 0 | $ | 247,263,245 | |||||||||||
Transfer of ownership interest in Terra Property Trust to Terra JV | 0 | 244,006,890 | (244,006,890) | ||||||||||||||
Return of capital | (1,852,767) | (2,779,129) | (3,783,607) | ||||||||||||||
Net change in unrealized appreciation (depreciation) on investment | 492,466 | (2,813,550) | 527,252 | ||||||||||||||
Ending balance | $ | 233,997,676 | $ | 238,414,211 | $ | 0 | |||||||||||
Net change in unrealized appreciation (depreciation) on investment for the period relating to those Level 3 assets that were still held by the Company | $ | 492,466 | $ | (2,813,550) | $ | 0 |
Equity Investment in Terra Property Trust | ||||||||
Nine Months Ended September 30, | ||||||||
2017 | 2016 | |||||||
Beginning balance | $ | 290,419,317 | $ | — | ||||
Shares of Terra Property Trust common stock received in exchange for the Company’s consolidated portfolio of net assets | — | 288,259,804 | ||||||
Shares of Terra Property Trust common stock purchased | — | 10,000,000 | ||||||
Return of capital | (14,012,486 | ) | (315,730 | ) | ||||
Net change in unrealized depreciation on investment | 920,026 | (1,400,694 | ) | |||||
Ending balance | $ | 277,326,857 | $ | 296,543,380 | ||||
Net change in unrealized depreciation on investment for the period relating to those Level 3 assets that were still held by the Company | $ | 920,026 | $ | (1,400,694 | ) |
Fair Value | Primary Valuation Technique | Unobservable Inputs | March 31, 2021 | |||||||||||||||||||||||||||||
Asset Category | Minimum | Maximum | Weighted Average | |||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Equity investment in Terra JV | $233,997,676 | Discounted cash flow (1)(2) | Discount rate (1)(2) | 4.00 | % | 20.05 | % | 14.68 | % |
Fair Value | Primary Valuation Technique | Unobservable Inputs | December 31, 2020 | |||||||||||||||||||||||||||||
Asset Category | Minimum | Maximum | Weighted Average | |||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Equity investment in Terra JV | $ | 235,357,977 | Discounted cash flow (1)(2) | Discount rate (1)(2) | 5.25 | % | 20.05 | % | 14.17 | % |
Fair Value | Primary Valuation Technique | Unobservable Inputs | September 30, 2017 | ||||||||||||
Asset Category | Minimum | Maximum | Weighted Average | ||||||||||||
Assets: | |||||||||||||||
Equity investment in Terra Property Trust | $ | 277,326,857 | Discounted cash flow | Discount rate | 2.56 | % | 15.00 | % | 12.71 | % |
Fair Value | Primary Valuation Technique | Unobservable Inputs | December 31, 2016 | ||||||||||||
Asset Category | Minimum | Maximum | Weighted Average | ||||||||||||
Assets: | |||||||||||||||
Equity investment in Terra Property Trust | $ | 290,419,317 | Discounted cash flow | Discount rate | 9.09 | % | 15.96 | % | 12.19 | % |
Nine Months Ended September 30, 2017 | Nine Months Ended September 30, 2016 | |||||||||||||||||
Managing Member | Non-Managing Members | Total | Managing Member | Non-Managing Members | Total | |||||||||||||
Units outstanding, beginning of period | — | 6,826.5 | 6,826.5 | — | 2,878.9 | 2,878.9 | ||||||||||||
Units issued in the Merger | — | — | — | — | 3,670.4 | 3,670.4 | ||||||||||||
Units admitted through the Rights Offering | — | — | — | — | 573.3 | 573.3 | ||||||||||||
Early redemption of Continuing Income Units | — | (7.9 | ) | (7.9 | ) | — | — | — | ||||||||||
Termination Units redeemed | — | (121.1 | ) | (121.1 | ) | — | (161.3 | ) | (161.3 | ) | ||||||||
Units outstanding, end of period | — | 6,697.5 | 6,697.5 | — | 6,961.3 | 6,961.3 |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Per unit operating performance: | |||||||||||
Net asset value per unit, beginning of period | $ | 35,467 | $ | 37,222 | |||||||
Increase (decrease) in members’ capital from operations (1): | |||||||||||
Net investment income | 152 | 164 | |||||||||
Net change in unrealized appreciation (depreciation) on investment | 74 | (344) | |||||||||
Total increase (decrease) in members’ capital from operations | 226 | (180) | |||||||||
Distributions to members (2): | |||||||||||
Capital distributions | (449) | (1,126) | |||||||||
Net decrease in members’ capital resulting from distributions | (449) | (1,126) | |||||||||
Net asset value per unit, end of period | $ | 35,244 | $ | 35,916 | |||||||
Ratios to average net assets: | |||||||||||
Expenses | 0.21 | % | 0.29 | % | |||||||
Net investment income | 1.72 | % | 1.79 | % | |||||||
IRR, beginning of period | 5.82 | % | 6.40 | % | |||||||
IRR, end of period | 5.73 | % | 6.08 | % |
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
Per unit operating performance: | |||||||
Net asset value per unit, beginning of period | $ | 42,423 | $ | 42,451 | |||
Increase in members’ capital from operations (1): | |||||||
Net investment income | 2,240 | 3,469 | |||||
Net change in unrealized depreciation on investment | 135 | (202 | ) | ||||
Total increase in members’ capital from operations | 2,375 | 3,267 | |||||
Distributions to member (2): | |||||||
Capital distributions | (3,401 | ) | (3,309 | ) | |||
Net decrease in members’ capital resulting from distributions | (3,401 | ) | (3,309 | ) | |||
Capital share transactions: | |||||||
Other (3) | 8 | 181 | |||||
Net increase in members’ capital resulting from capital share transactions | 8 | 181 | |||||
Net asset value per unit, end of period | $ | 41,405 | $ | 42,590 |
Nine Months Ended September 30, | |||||
2017 | 2016 | ||||
Ratios to average net assets: | |||||
Expenses (4) | 0.22 | % | 0.40 | % | |
Net investment income | 7.13 | % | 10.99 | % | |
IRR, beginning of period | 5.43 | % | 0.34 | % | |
IRR, end of period | 6.07 | % | 4.91 | % |
March 31, 2021 | |||||||||||||||||||||||||||||
Fixed Rate | Floating Rate (1)(2)(3) | Total Gross Loans | Obligations under Participation Agreements and Secured Borrowing | Total Net Loans | |||||||||||||||||||||||||
Number of loans | 6 | 13 | 19 | 7 | 19 | ||||||||||||||||||||||||
Principal balance | $ | 57,040,923 | $ | 350,689,385 | $ | 407,730,308 | $ | 93,310,285 | $ | 314,420,023 | |||||||||||||||||||
Amortized cost | 57,157,301 | 348,911,570 | 406,068,871 | 93,596,454 | 312,472,417 | ||||||||||||||||||||||||
Fair value | 57,099,978 | 346,367,302 | 403,467,280 | 91,599,071 | 311,868,209 | ||||||||||||||||||||||||
Weighted average coupon rate | 12.07 | % | 7.66 | % | 8.28 | % | 9.97 | % | 7.78 | % | |||||||||||||||||||
Weighted-average remaining term (years) | 1.57 | 1.41 | 1.43 | 0.90 | 1.59 |
September 30, 2017 | |||||||||||||||||||
Fixed Rate | Floating Rate (1) | Total Gross Loans | Obligations under Participation Agreements | Total Net Loans | |||||||||||||||
Number of loans | 32 | 1 | 1 | 33 | 19 | 33 | |||||||||||||
Principal balance | $ | 274,799,217 | $ | 52,986,912 | $ | 327,786,129 | 70,020,950 | $ | 257,765,179 | ||||||||||
Amortized cost | 278,381,358 | 53,494,280 | 331,875,638 | 70,992,661 | 260,882,977 | ||||||||||||||
Fair value | 278,265,904 | 53,637,569 | 331,903,473 | 70,910,091 | 260,993,382 | ||||||||||||||
Weighted average coupon rate | 12.60 | % | 9.73 | % | 12.13 | % | 12.49 | % | 11.99 | % | |||||||||
Weighted-average remaining terms (year) | 1.68 | 0.44 | 1.48 | 1.26 | 1.54 |
December 31, 2016 | December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
Fixed Rate | Floating Rate (1) | Total Gross Loans | Obligations under Participation Agreements | Total Net Loans | Fixed Rate | Floating Rate (1)(2)(3) | Total Gross Loans | Obligations under Participation Agreements and Secured Borrowing | Total Net Loans | ||||||||||||||||||||||||||||||||||||||
Number of loans | 37 | 1 | 38 | 11 | 38 | Number of loans | 6 | 14 | 20 | 8 | 20 | ||||||||||||||||||||||||||||||||||||
Principal balance | $ | 275,554,910 | $ | 50,450,061 | $ | 326,004,971 | 32,635,785 | $ | 293,369,186 | Principal balance | $ | 56,335,792 | $ | 367,838,966 | $ | 424,174,758 | $ | 89,548,151 | $ | 334,626,607 | |||||||||||||||||||||||||||
Amortized cost | 279,781,074 | 50,902,766 | 330,683,840 | 32,986,194 | 297,697,646 | Amortized cost | 56,464,310 | 365,816,205 | 422,280,515 | 89,769,560 | 332,510,955 | ||||||||||||||||||||||||||||||||||||
Fair value | 278,931,283 | 50,924,056 | 329,855,339 | 32,904,955 | 296,950,384 | Fair value | 56,284,334 | 363,122,860 | 419,407,194 | 87,730,239 | 331,676,955 | ||||||||||||||||||||||||||||||||||||
Weighted average coupon rate | 12.98 | % | 9.19 | % | 12.38 | % | 12.96 | % | 12.33 | % | Weighted average coupon rate | 12.17 | % | 7.95 | % | 8.51 | % | 10.16 | % | 8.07 | % | ||||||||||||||||||||||||||
Weighted-average remaining terms (year) | 1.42 | 1.19 | 1.39 | 1.35 | 1.37 | ||||||||||||||||||||||||||||||||||||||||||
Weighted-average remaining term (years) | Weighted-average remaining term (years) | 1.78 | 1.44 | 1.48 | 1.08 | 1.59 |
(1)These loans pay a coupon rate of London Interbank Offered Rate (“LIBOR”) plus a fixed spread. Coupon rate shown was determined using LIBOR of 0.11% and 0.14% as of March 31, 2021 and December 31, 2020. (2)As of March 31, 2021 and December 31, 2020, amounts included $183.7 million and $184.2 million of senior mortgages used as collateral for $106.5 million and $107.6 million of borrowings under a term loan, respectively. As of March 31, 2021, amounts also included $11.9 million of senior mortgages used as collateral for $8.0 million of borrowings under a revolving line of credit. Borrowings under the term loan bear interest at an annual rate of LIBOR plus 4.25% with a LIBOR floor of 1.00%. Borrowings under the revolving line of credit bear interest at a minimum rate of 4.0%. (3)As of March 31, 2021 and December 31, 2020, eleven and twelve of these loans, respectively, are subject to a LIBOR floor. In addition to its net loan portfolio, as of March 31, 2021 and December 31, 2020, Terra Property Trust owned 4.9 acres of adjacent land acquired via deed in lieu of foreclosure and a multi-tenant office building acquired via foreclosure. The land and building and related lease intangible assets and liabilities had a net carrying value of $62.1 million and $62.9 million as of March 31, 2021 and December 31, 2020, respectively. The mortgage loan payable encumbering the office building had an outstanding principal amount of $40.6 million and $44.0 million as of March 31, 2021 and December 31, 2020, respectively. Additionally, as of March 31, 2021 and December 31, 2020, Terra Property Trust owned 83.5% and 90.3%, respectively, of equity interest in a limited partnership that invests in performing and non-performing mortgages, loans, mezzanines and other credit instruments supported by underlying commercial real estate assets. As of March 31, 2021 and December 31, 2020, the equity interest had a carrying value of $50.5 million and $36.3 million, respectively. Portfolio Investment Activity For the three months ended March 31, 2021 and 2020, Terra Property Trust invested $15.5 million and $12.6 million in new investments and had $25.0 million and $10.0 million of repayments, resulting in net repayments of $9.4 million and net investments of $2.6 million, respectively. Amounts are net of obligations under participation agreements, secured borrowing, borrowings under the master repurchase agreement, the term loan and the revolving line of credit. In addition, in March 2020, Terra Property Trust issued 4,574,470.35 shares of common stock in exchange for the settlement of an aggregate of $49.8 million of participation interests in loans that it owned, cash of $25.5 million and other working capital. In connection with the transactions, the related participation obligations were settled. 26 |
March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||
Loan Structure | Principal Balance | Amortized Cost | Fair Value | % of Total | Principal Balance | Amortized Cost | Fair Value | % of Total | ||||||||||||||||||||||||||||||||||||||||||
First mortgages | $ | 212,718,851 | $ | 214,217,072 | $ | 214,067,237 | 48.8 | % | $ | 209,660,270 | $ | 210,694,778 | $ | 210,517,299 | 47.9 | % | ||||||||||||||||||||||||||||||||||
Preferred equity investments | 77,586,298 | 77,828,409 | 73,847,051 | 16.8 | % | 101,019,788 | 101,267,732 | 97,472,723 | 22.2 | % | ||||||||||||||||||||||||||||||||||||||||
Mezzanine loans | 24,114,874 | 24,441,714 | 23,953,921 | 5.5 | % | 23,946,549 | 24,287,203 | 23,686,933 | 5.4 | % | ||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | — | (4,014,778) | — | — | % | — | (3,738,758) | — | — | % | ||||||||||||||||||||||||||||||||||||||||
Total loan investments | $ | 314,420,023 | 312,472,417 | 311,868,209 | 71.1 | % | $ | 334,626,607 | 332,510,955 | 331,676,955 | 75.5 | % | ||||||||||||||||||||||||||||||||||||||
Marketable securities | 6,155,094 | 6,251,980 | 1.4 | % | 1,176,006 | 1,287,500 | 0.3 | % | ||||||||||||||||||||||||||||||||||||||||||
Real estate owned | 62,114,581 | 70,717,229 | 16.1 | % | 63,385,339 | 70,717,229 | 16.1 | % | ||||||||||||||||||||||||||||||||||||||||||
Equity investment in a limited partnership | 50,505,511 | 49,919,016 | 11.4 | % | 36,385,339 | 35,678,585 | 8.1 | % | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 431,247,603 | $ | 438,756,434 | 100.0 | % | $ | 433,457,639 | $ | 439,360,269 | 100.0 | % |
September 30, 2017 | December 31, 2016 | |||||||||||||||||||||||||||||
Loan Structure | Principal Balance | Amortized Cost | Fair Value | % of Total | Principal Balance | Amortized Cost | Fair Value | % of Total | ||||||||||||||||||||||
First mortgages | $ | 106,946,912 | $ | 107,981,096 | $ | 108,124,338 | 41.4 | % | $ | 117,890,016 | $ | 118,995,391 | $ | 119,018,338 | 40.1 | % | ||||||||||||||
Mezzanine loans | 89,335,269 | 90,756,354 | 90,821,211 | 34.8 | % | 118,524,437 | 121,037,421 | 120,466,609 | 40.6 | % | ||||||||||||||||||||
Preferred equity investments | 53,482,998 | 54,065,527 | 53,968,834 | 20.7 | % | 47,415,691 | 48,229,921 | 47,838,821 | 16.1 | % | ||||||||||||||||||||
Other (1) | 8,000,000 | 8,080,000 | 8,078,999 | 3.1 | % | 9,539,042 | 9,626,616 | 9,626,616 | 3.2 | % | ||||||||||||||||||||
Allowance for loan losses | — | — | — | — | % | — | (191,703 | ) | — | — | % | |||||||||||||||||||
Total | $ | 257,765,179 | $ | 260,882,977 | $ | 260,993,382 | 100.0 | % | $ | 293,369,186 | $ | 297,697,646 | $ | 296,950,384 | 100.0 | % |
September 30, 2017 | December 31, 2016 | |||||||||||||||||||||||||||||
Property Type | Principal Balance | Amortized Cost | Fair Value | % of Total | Principal Balance | Amortized Cost | Fair Value | % of Total | ||||||||||||||||||||||
Multifamily | $ | 71,765,501 | $ | 72,775,385 | $ | 72,426,060 | 27.8 | % | $ | 83,510,933 | $ | 85,021,199 | $ | 84,556,067 | 28.5 | % | ||||||||||||||
Office | 57,382,912 | 57,930,352 | 58,076,047 | 22.3 | % | 69,506,033 | 70,159,209 | 70,158,868 | 23.6 | % | ||||||||||||||||||||
Land | 53,960,000 | 54,486,816 | 54,486,769 | 20.8 | % | 53,746,133 | 54,255,486 | 54,258,353 | 18.2 | % | ||||||||||||||||||||
Hotel | 53,922,152 | 54,641,489 | 54,562,580 | 20.9 | % | 66,351,287 | 67,557,902 | 67,077,247 | 22.6 | % | ||||||||||||||||||||
Industrial | 7,000,000 | 7,000,000 | 7,000,000 | 2.7 | % | — | — | — | — | % | ||||||||||||||||||||
Student housing | 5,734,614 | 5,968,935 | 6,362,927 | 2.4 | % | 5,700,000 | 6,125,635 | 6,215,839 | 2.1 | % | ||||||||||||||||||||
Mixed use | — | — | — | — | % | 2,515,758 | 2,533,450 | 2,527,566 | 0.9 | % | ||||||||||||||||||||
Other (1) | 8,000,000 | 8,080,000 | 8,078,999 | 3.1 | % | 12,039,042 | 12,236,468 | 12,156,444 | 4.1 | % | ||||||||||||||||||||
Allowance for loan losses | — | — | — | — | % | — | (191,703 | ) | — | — | % | |||||||||||||||||||
Total | $ | 257,765,179 | $ | 260,882,977 | $ | 260,993,382 | 100.0 | % | $ | 293,369,186 | $ | 297,697,646 | $ | 296,950,384 | 100.0 | % |
March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||
Property Type | Principal Balance | Amortized Cost | Fair Value | % of Total | Principal Balance | Amortized Cost | Fair Value | % of Total | ||||||||||||||||||||||||||||||||||||||||||
Office | $ | 150,129,899 | $ | 150,669,866 | $ | 149,342,121 | 34.1 | % | $ | 145,560,299 | $ | 146,010,011 | $ | 144,654,237 | 32.9 | % | ||||||||||||||||||||||||||||||||||
Multifamily | 80,440,026 | 81,087,592 | 80,890,073 | 18.4 | % | 103,057,678 | 103,678,464 | 103,502,170 | 23.5 | % | ||||||||||||||||||||||||||||||||||||||||
Hotel - full/select service | 47,112,522 | 47,704,223 | 47,502,136 | 10.8 | % | 49,142,809 | 49,393,251 | 49,052,148 | 11.2 | % | ||||||||||||||||||||||||||||||||||||||||
Mixed use | 16,512,842 | 16,512,842 | 13,817,239 | 3.1 | % | 16,767,984 | 16,767,984 | 14,314,585 | 3.3 | % | ||||||||||||||||||||||||||||||||||||||||
Industrial | 7,000,000 | 7,000,000 | 6,995,064 | 1.6 | % | 7,000,000 | 7,000,000 | 7,007,397 | 1.6 | % | ||||||||||||||||||||||||||||||||||||||||
Infill land | 5,974,734 | 6,030,824 | 6,042,260 | 1.4 | % | 5,847,837 | 5,901,575 | 5,864,339 | 1.3 | % | ||||||||||||||||||||||||||||||||||||||||
Hotel - extended stay | 4,250,000 | 4,292,148 | 4,292,450 | 1.0 | % | 4,250,000 | 4,294,053 | 4,293,969 | 1.0 | % | ||||||||||||||||||||||||||||||||||||||||
Student housing | 3,000,000 | 3,189,700 | 2,986,866 | 0.7 | % | 3,000,000 | 3,204,375 | 2,988,110 | 0.7 | % | ||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | — | (4,014,778) | — | — | % | — | (3,738,758) | — | — | % | ||||||||||||||||||||||||||||||||||||||||
Total loan investments | $ | 314,420,023 | 312,472,417 | 311,868,209 | 71.1 | % | $ | 334,626,607 | 332,510,955 | 331,676,955 | 75.5 | % | ||||||||||||||||||||||||||||||||||||||
Marketable securities | 6,155,094 | 6,251,980 | 1.4 | % | 1,176,006 | $ | 1,287,500 | 0.3 | % | |||||||||||||||||||||||||||||||||||||||||
Real estate owned | 62,114,581 | 70,717,229 | 16.1 | % | 63,385,339 | 70,717,229 | 16.1 | % | ||||||||||||||||||||||||||||||||||||||||||
Equity investment in a limited partnership | 50,505,511 | 49,919,016 | 11.4 | % | 36,385,339 | 35,678,585 | 8.1 | % | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 431,247,603 | $ | 438,756,434 | 100.0 | % | $ | 433,457,639 | $ | 439,360,269 | 100.0 | % |
March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||
Geographic Location | Principal Balance | Amortized Cost | Fair Value | % of Total | Principal Balance | Amortized Cost | Fair Value | % of Total | ||||||||||||||||||||||||||||||||||||||||||
United States | ||||||||||||||||||||||||||||||||||||||||||||||||||
California | $ | 121,331,368 | $ | 122,393,503 | $ | 122,372,064 | 28.0 | % | $ | 143,454,602 | $ | 144,066,584 | $ | 143,989,756 | 32.9 | % | ||||||||||||||||||||||||||||||||||
Georgia | 74,957,483 | 75,352,520 | 75,236,254 | 17.1 | % | 74,116,787 | 74,505,752 | 74,411,107 | 16.9 | % | ||||||||||||||||||||||||||||||||||||||||
New York | 56,966,298 | 57,039,596 | 53,076,619 | 12.1 | % | 56,058,669 | 56,139,234 | 52,378,785 | 11.9 | % | ||||||||||||||||||||||||||||||||||||||||
North Carolina | 28,774,734 | 28,934,721 | 28,934,384 | 6.6 | % | 28,647,837 | 28,802,869 | 28,734,218 | 6.5 | % | ||||||||||||||||||||||||||||||||||||||||
Washington | 18,500,000 | 18,648,113 | 18,629,677 | 4.2 | % | 18,500,000 | 18,643,699 | 18,634,464 | 4.2 | % | ||||||||||||||||||||||||||||||||||||||||
Massachusetts | 7,000,000 | 7,000,000 | 6,995,064 | 1.6 | % | 7,000,000 | 7,000,000 | 7,007,397 | 1.6 | % | ||||||||||||||||||||||||||||||||||||||||
Texas | 3,890,140 | 3,929,042 | 3,637,281 | 0.8 | % | 3,848,712 | 3,887,200 | 3,533,118 | 0.8 | % | ||||||||||||||||||||||||||||||||||||||||
South Carolina | 3,000,000 | 3,189,700 | 2,986,866 | 0.7 | % | 3,000,000 | 3,204,375 | 2,988,110 | 0.7 | % | ||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | — | (4,014,778) | — | — | % | — | (3,738,758) | — | — | % | ||||||||||||||||||||||||||||||||||||||||
Total loan investments | $ | 314,420,023 | 312,472,417 | 311,868,209 | 71.1 | % | $ | 334,626,607 | 332,510,955 | 331,676,955 | 75.5 | % | ||||||||||||||||||||||||||||||||||||||
Marketable securities | 6,155,094 | 6,251,980 | 1.4 | % | 1,176,006 | 1,287,500 | 0.3 | % | ||||||||||||||||||||||||||||||||||||||||||
Real estate owned | 62,114,581 | 70,717,229 | 16.1 | % | 63,385,339 | 70,717,229 | 16.1 | % | ||||||||||||||||||||||||||||||||||||||||||
Equity investment in a limited partnership | 50,505,511 | 49,919,016 | 11.4 | % | 36,385,339 | 35,678,585 | 8.1 | % | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 431,247,603 | $ | 438,756,434 | 100.0 | % | 1 | $ | 433,457,639 | $ | 439,360,269 | 100.0 | % |
September 30, 2017 | December 31, 2016 | |||||||||||||||||||||||||||||
Geographic Location | Principal Balance | Amortized Cost | Fair Value | % of Total | Principal Balance | Amortized Cost | Fair Value | % of Total | ||||||||||||||||||||||
United States | ||||||||||||||||||||||||||||||
California | $ | 90,816,912 | $ | 91,818,221 | $ | 91,838,599 | 35.2 | % | $ | 89,925,061 | $ | 91,165,200 | $ | 90,798,926 | 30.5 | % | ||||||||||||||
New York | 37,805,463 | 38,107,156 | 38,068,216 | 14.5 | % | 37,032,965 | 37,324,858 | 37,315,430 | 12.6 | % | ||||||||||||||||||||
Florida | 34,529,152 | 34,851,771 | 34,858,786 | 13.3 | % | 49,122,324 | 49,520,673 | 49,320,018 | 16.6 | % | ||||||||||||||||||||
Washington | 20,250,000 | 20,360,848 | 20,417,124 | 7.8 | % | — | — | — | — | % | ||||||||||||||||||||
Pennsylvania | 15,410,000 | 15,554,693 | 15,564,431 | 6.0 | % | 18,982,000 | 19,162,115 | 19,184,642 | 6.5 | % | ||||||||||||||||||||
Georgia | 15,250,000 | 15,588,190 | 15,386,904 | 5.9 | % | 4,250,000 | 4,604,941 | 4,387,683 | 1.5 | % | ||||||||||||||||||||
Texas | 7,651,038 | 7,879,004 | 7,764,279 | 3.0 | % | 9,139,038 | 9,363,678 | 9,330,002 | 3.1 | % | ||||||||||||||||||||
Massachusetts | 7,000,000 | 7,000,000 | 7,000,000 | 2.7 | % | 4,000,000 | 4,112,275 | 4,071,618 | 1.4 | % | ||||||||||||||||||||
Delaware | 4,396,000 | 4,436,072 | 4,438,478 | 1.7 | % | 7,000,000 | 7,057,616 | 7,086,338 | 2.4 | % | ||||||||||||||||||||
Alabama | 3,700,000 | 3,775,021 | 3,744,552 | 1.4 | % | 3,844,445 | 3,928,742 | 3,882,318 | 1.3 | % | ||||||||||||||||||||
Oregon | 3,140,000 | 3,273,511 | 3,290,784 | 1.3 | % | 5,000,000 | 5,356,923 | 5,324,812 | 1.8 | % | ||||||||||||||||||||
North Carolina | 2,198,000 | 2,222,837 | 2,219,723 | 0.9 | % | 4,921,404 | 4,985,576 | 4,985,280 | 1.7 | % | ||||||||||||||||||||
Tennessee | 1,884,000 | 1,966,718 | 1,959,580 | 0.8 | % | 9,877,843 | 10,179,485 | 10,047,055 | 3.4 | % | ||||||||||||||||||||
New Jersey | — | — | — | — | % | 22,639,955 | 22,865,291 | 22,864,082 | 7.7 | % | ||||||||||||||||||||
Virginia | — | — | — | — | % | 6,675,510 | 6,737,238 | 6,737,238 | 2.3 | % | ||||||||||||||||||||
Arizona | — | — | — | — | % | 5,719,598 | 5,772,487 | 5,772,487 | 1.9 | % | ||||||||||||||||||||
Other (1) | 13,734,614 | 14,048,935 | 14,441,926 | 5.5 | % | 15,239,043 | 15,752,251 | 15,842,455 | 5.3 | % | ||||||||||||||||||||
Allowance for loan losses | — | — | — | — | % | — | (191,703 | ) | — | — | % | |||||||||||||||||||
Total | $ | 257,765,179 | $ | 260,882,977 | $ | 260,993,382 | 100.0 | % | $ | 293,369,186 | $ | 297,697,646 | $ | 296,950,384 | 100.0 | % |
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | Change | |||||||||||||||||||||
Investment income | |||||||||||||||||||||||
Dividend income | $ | 1,126,895 | $ | 1,264,438 | $ | (137,543) | |||||||||||||||||
Other operating income | 20 | 144 | (124) | ||||||||||||||||||||
Total investment income | 1,126,915 | 1,264,582 | (137,667) | ||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Professional fees | 120,135 | 174,099 | (53,964) | ||||||||||||||||||||
Other | 385 | 1,449 | (1,064) | ||||||||||||||||||||
Total operating expenses | 120,520 | 175,548 | (55,028) | ||||||||||||||||||||
Net investment income | 1,006,395 | 1,089,034 | (82,639) | ||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on investment | 492,466 | (2,286,298) | 2,778,764 | ||||||||||||||||||||
Net increase (decrease) in members’ capital resulting from operations | $ | 1,498,861 | $ | (1,197,264) | $ | 2,696,125 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||||||||||||
Investment income | |||||||||||||||||||||||
Dividend income | $ | 4,448,792 | $ | 9,824,336 | $ | (5,375,544 | ) | $ | 15,703,171 | $ | 25,042,346 | $ | (9,339,175 | ) | |||||||||
Other operating income | 111 | 614 | (503 | ) | 1,064 | 8,571 | (7,507 | ) | |||||||||||||||
Total investment income | 4,448,903 | 9,824,950 | (5,376,047 | ) | 15,704,235 | 25,050,917 | (9,346,682 | ) | |||||||||||||||
Operating expenses | |||||||||||||||||||||||
Professional fees | 104,100 | 269,635 | (165,535 | ) | 431,465 | 549,211 | (117,746 | ) | |||||||||||||||
Merger transaction fees | — | — | — | — | 388,692 | (388,692 | ) | ||||||||||||||||
Other | 3,448 | (38,342 | ) | 41,790 | 35,761 | 52,954 | (17,193 | ) | |||||||||||||||
Total operating expenses | 107,548 | 231,293 | (123,745 | ) | 467,226 | 990,857 | (523,631 | ) | |||||||||||||||
Net investment income | 4,341,355 | 9,593,657 | (5,252,302 | ) | 15,237,009 | 24,060,060 | (8,823,051 | ) | |||||||||||||||
Net change in unrealized depreciation on investment | 428,032 | (730,673 | ) | 1,158,705 | 920,026 | (1,400,694 | ) | 2,320,720 | |||||||||||||||
Net increase in members’ capital resulting from operations | $ | 4,769,387 | $ | 8,862,984 | $ | (4,093,597 | ) | $ | 16,157,035 | $ | 22,659,366 | $ | (6,502,331 | ) |
Three Months Ended September 30, 2017 | Three Months Ended September 30, 2016 | |||||||||||
Weighted Average Principal Amount | Weighted Average Coupon Rate | Weighted Average Principal Amount | Weighted Average Coupon Rate | |||||||||
Gross loans | $ | 314,920,884 | 12.1% | $ | 318,263,084 | 12.5% | ||||||
Obligations under participation agreements | (68,234,833 | ) | 12.5% | (24,792,000 | ) | 13.2% | ||||||
Mortgage loan payable | (34,000,000 | ) | 5.7% | (34,000,000 | ) | 5.8% | ||||||
Net loans | $ | 212,686,051 | 13.0% (1) | $ | 259,471,084 | 13.3% (1) |
Nine Months Ended September 30, 2017 | Nine Months Ended September 30, 2016 | |||||||||||
Weighted Average Principal Amount | Weighted Average Coupon Rate | Weighted Average Principal Amount | Weighted Average Coupon Rate | |||||||||
Gross loans | $ | 338,889,294 | 12.0% | $ | 309,970,724 | 12.8% | ||||||
Obligations under participation agreements | (52,385,371 | ) | 12.4% | (22,848,289 | ) | 13.4% | ||||||
Mortgage loan payable | (36,928,955 | ) | 5.7% | (30,435,055 | ) | 5.8% | ||||||
Net loans | $ | 249,574,968 | 12.8% (1) | $ | 256,687,380 | 13.6% (1) |
Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | |||||||||||||||||||||||||
Weighted Average Principal Amount (1) | Weighted Average Coupon Rate (2) | Weighted Average Principal Amount (1) | Weighted Average Coupon Rate (2) | |||||||||||||||||||||||
Total portfolio | ||||||||||||||||||||||||||
Gross loans | $ | 408,985,092 | 8.4 | % | $ | 388,164,960 | 9.5 | % | ||||||||||||||||||
Obligations under participation agreements and secured borrowing | (88,594,532) | 10.1 | % | (88,056,951) | 11.7 | % | ||||||||||||||||||||
Repurchase agreement payable | — | — | % | (94,465,741) | 4.0 | % | ||||||||||||||||||||
Term loan payable | (107,776,898) | 5.3 | % | — | — | % | ||||||||||||||||||||
Revolving line of credit | (1,745,785) | 4.0 | % | — | — | % | ||||||||||||||||||||
Net loans (3) | $ | 210,867,877 | 9.3 | % | $ | 205,642,268 | 11.1 | % | ||||||||||||||||||
Senior loans | ||||||||||||||||||||||||||
Gross loans | 255,124,634 | 6.4 | % | 189,925,027 | 6.9 | % | ||||||||||||||||||||
Obligations under participation agreements and secured borrowing | (45,478,823) | 8.6 | % | (17,680,599) | 10.6 | % | ||||||||||||||||||||
Repurchase agreement payable | — | — | % | (94,465,741) | 4.0 | % | ||||||||||||||||||||
Term loan payable | (107,776,898) | 5.3 | % | — | — | % | ||||||||||||||||||||
Revolving line of credit | (1,745,785) | 4.0 | % | — | — | % | ||||||||||||||||||||
Net loans (3) | $ | 100,123,128 | 6.6 | % | $ | 77,778,687 | 9.7 | % | ||||||||||||||||||
Subordinated loans (4) | ||||||||||||||||||||||||||
Gross loans | 153,860,458 | 11.7 | % | 198,239,933 | 12.0 | % | ||||||||||||||||||||
Obligations under participation agreements | (43,115,709) | 11.6 | % | (70,376,352) | 12.0 | % | ||||||||||||||||||||
Net loans (3) | $ | 110,744,749 | 11.7 | % | $ | 127,863,581 | 12.0 | % |
Three Months Ended September 30, | ||||||||||||
2017 | 2016 | Change | ||||||||||
Interest income | $ | 9,598,478 | $ | 9,245,815 | $ | 352,663 | ||||||
Interest expense — obligations under participation agreements | (2,001,349 | ) | (839,996 | ) | (1,161,353 | ) | ||||||
Interest expense — mortgage loan payable | (625,477 | ) | (503,466 | ) | (122,011 | ) | ||||||
Net interest income | $ | 6,971,652 | $ | 7,902,353 | $ | (930,701 | ) | |||||
Weighted average carrying value of gross loans | $ | 320,242,875 | $ | 325,305,778 | $ | (5,062,903 | ) | |||||
Weighted average carrying value of obligations under participation agreements | (69,032,326 | ) | (25,292,536 | ) | (43,739,790 | ) | ||||||
Weighted average carrying value of mortgage loan payable | (33,921,185 | ) | (33,736,918 | ) | (184,267 | ) | ||||||
Weighted average carrying value of net loans | $ | 217,289,364 | $ | 266,276,324 | $ | (48,986,960 | ) | |||||
Annualized net effective yield (1) | 12.7 | % | 12.7 | % | — | % |
Three Months Ended September 30, | ||||||||||||
2017 | 2016 | Change | ||||||||||
Senior loans | ||||||||||||
Weighted average carrying value of net loans | $ | 84,784,385 | $ | 71,433,279 | $ | 13,351,106 | ||||||
Annualized net effective yield (1) | 11.4 | % | 12.7 | % | (1.3 | )% | ||||||
Subordinated loans | ||||||||||||
Weighted average carrying value of net loans | $ | 132,504,979 | $ | 194,843,045 | $ | (62,338,066 | ) | |||||
Annualized net effective yield (1) | 13.4 | % | 12.6 | % | 0.8 | % |
Nine Months Ended September 30, | ||||||||||||
2017 | 2016 | Change | ||||||||||
Interest income | $ | 27,721,062 | $ | 29,008,206 | $ | (1,287,144 | ) | |||||
Interest expense — obligations under participation agreements | (4,712,165 | ) | (2,321,418 | ) | (2,390,747 | ) | ||||||
Interest expense — mortgage loan payable | (2,021,006 | ) | (1,174,968 | ) | (846,038 | ) | ||||||
Net interest income | $ | 20,987,891 | $ | 25,511,820 | $ | (4,523,929 | ) | |||||
Weighted average carrying value of gross loans | $ | 345,427,543 | $ | 318,048,375 | $ | 27,379,168 | ||||||
Weighted average carrying value of obligations under participation agreements | (56,230,271 | ) | (23,284,885 | ) | (32,945,386 | ) | ||||||
Weighted average carrying value of mortgage loan payable | (36,737,795 | ) | (26,701,336 | ) | (10,036,459 | ) | ||||||
Weighted average carrying value of net loans | $ | 252,459,477 | $ | 268,062,154 | $ | (15,602,677 | ) | |||||
Annualized net effective yield (1) | 11.4 | % | 12.8 | % | (1.4 | )% | ||||||
Senior loans | ||||||||||||
Weighted average carrying value of net loans | $ | 104,279,060 | $ | 61,575,436 | $ | 42,703,624 | ||||||
Annualized net effective yield (1) | 9.2 | % | 13.0 | % | (3.8 | )% | ||||||
Subordinated loans | ||||||||||||
Weighted average carrying value of net loans | $ | 148,180,417 | $ | 206,486,718 | $ | (58,306,301 | ) | |||||
Annualized net effective yield (1) | 12.8 | % | 12.6 | % | 0.2 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | |||||||||||||
Net contractual interest income (1) | 12.7 | % | 13.3 | % | (0.6 | )% | 12.5 | % | 13.5 | % | (1.0 | )% | ||||||
Non-collection of interest income, net (2) | — | % | — | % | — | % | (0.5 | )% | — | % | (0.5 | )% | ||||||
Amortization of net purchase premium (3) | (0.1 | )% | (0.6 | )% | 0.5 | % | (0.5 | )% | (0.7 | )% | 0.2 | % | ||||||
Net transaction fee income (expense) | 0.1 | % | — | % | 0.1 | % | (0.1 | )% | — | % | (0.1 | )% | ||||||
Total | 12.7 | % | 12.7 | % | — | % | 11.4 | % | 12.8 | % | (1.4 | )% |
Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | ||||||||||||||||||||||||||||
Obligations under participation agreements — principal (1) | $ | 71,276,756 | $ | 66,276,756 | $ | 5,000,000 | $ | — | $ | — | ||||||||||||||||||||||
Secured borrowing — principal (1) | 22,033,529 | — | 22,033,529 | — | — | |||||||||||||||||||||||||||
Mortgage loan payable — principal (2) | 40,596,980 | 801,547 | 39,795,433 | — | — | |||||||||||||||||||||||||||
Term loan payable — principal (3) | 106,454,107 | — | 44,614,424 | 61,839,683 | — | |||||||||||||||||||||||||||
Revolving Line of Credit payable — principal (4) | 8,030,611 | — | 8,030,611 | — | — | |||||||||||||||||||||||||||
Interest on borrowings (5) | 33,582,806 | 15,913,261 | 15,171,799 | 2,497,746 | — | |||||||||||||||||||||||||||
Unfunded lending commitments (6) | 55,545,829 | 53,402,223 | 2,143,606 | — | — | |||||||||||||||||||||||||||
Ground lease commitment (7) | 82,877,438 | 1,264,500 | 2,529,000 | 2,529,000 | 76,554,938 | |||||||||||||||||||||||||||
$ | 420,398,056 | $ | 137,658,287 | $ | 139,318,402 | $ | 66,866,429 | $ | 76,554,938 |
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | 2021 | 2020 | |||||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||||||||||||
Origination fee expense (1) | $ | 624,255 | $ | 734,706 | $ | 2,381,562 | $ | 2,396,149 | ||||||||||||||||||||||||||||
Origination and extension fee expense (1) | Origination and extension fee expense (1) | $ | 345,384 | $ | 437,617 | |||||||||||||||||||||||||||||||
Asset management fee | 785,748 | 948,372 | 2,397,595 | 2,482,315 | Asset management fee | 1,156,543 | 1,029,533 | |||||||||||||||||||||||||||||
Asset servicing fee | 152,047 | 227,101 | 529,535 | 602,662 | Asset servicing fee | 273,207 | 234,208 | |||||||||||||||||||||||||||||
Operating expenses reimbursed to Manager | 725,197 | 838,287 | 2,425,699 | 2,516,849 | Operating expenses reimbursed to Manager | 1,342,758 | 1,367,189 | |||||||||||||||||||||||||||||
Disposition fee (2) | 197,614 | 44,879 | 798,333 | 451,980 | Disposition fee (2) | 250,988 | 75,520 | |||||||||||||||||||||||||||||
Total | $ | 2,484,861 | $ | 2,793,345 | $ | 8,532,724 | $ | 8,449,955 | Total | $ | 3,368,880 | $ | 3,144,067 |
35 (1)Origination and extension fee expense is generally offset with origination and extension fee income. Any excess is deferred |
Exhibit No. | Description and Method of Filing | |||||||
2.1 | ||||||||
2.2 | ||||||||
2.3 | ||||||||
2.4 | ||||||||
2.5 |
3.1 | ||||||||
31.1* | ||||||||
31.2* | ||||||||
32** | ||||||||
101.INS** | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |||||||
101.SCH** | XBRL Taxonomy Extension Schema Document | |||||||
101.CAL** | XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.LAB** | XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE** | XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
Cover Page Interactive Data File Included as Exhibit 101 (embedded within the Inline XBRL |
TERRA SECURED INCOME FUND 5, LLC | ||||||||
By: | /s/ | |||||||
Chief Executive Officer | ||||||||
(Principal Executive Officer) | ||||||||
By: | /s/ Gregory M. Pinkus | |||||||
Gregory M. Pinkus | ||||||||
Chief Financial Officer and Chief Operating Officer, | ||||||||
(Principal Financial and Accounting Officer) |