Seven Hills Realty Trust (SEVN) 10-Q 3 Aug 21 2021 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2021	Jul. 30, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	001-34383
Entity Registrant Name	RMR Mortgage Trust
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	20-4649929
Entity Address, Address Line One	Two Newton Place
Entity Address, Address Line Two	255 Washington Street
Entity Address, Address Line Three	Suite 300
Entity Address, City or Town	Newton
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02458-1634
City Area Code	617
Local Phone Number	332-9530
Title of 12(b) Security	Common Shares of Beneficial Interest
Trading Symbol	RMRM
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		10,217,009
Entity Central Index Key	0001452477
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS/CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
ASSETS
Cash and cash equivalents	$ 30,402	$ 103,314
Restricted cash	205	250
Loans held for investment, net	210,742	91,879
Accrued interest receivable	620
Prepaid expenses and other assets	2,505
Dividends and interest receivable		139
Prepaid expenses		345
Other assets		128
Total assets	244,474	196,055
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable, accrued liabilities and deposits	1,638
Master repurchase facility, net	48,775
Due to related persons	1,006
Accrued income taxes		2,386
Accrued expenses and other liabilities		491
Advisory fee payable		141
Deferred revenue		82
Compliance and internal audit costs payable		31
Administrative fee payable		30
Total liabilities	51,419	3,161
Commitments and contingencies
Shareholders' equity:
Common shares of beneficial interest, $0.001 par value per share; unlimited number of shares authorized; 10,217,009 shares issued and outstanding	10	10
Additional paid in capital	193,065	192,884
Cumulative net income	1,510
Cumulative distributions	1,530
Total shareholders' equity	193,055	192,894
Total liabilities and shareholders' equity	244,474
Net assets attributable to common shares		192,894
Composition of net assets attributable to common shares
Common shares, $0.001 par value per share; unlimited number of shares authorized	10	10
Additional paid in capital	$ 193,065	192,884
Net assets attributable to common shares		$ 192,894
Common shares outstanding (in shares)	10,217,009	10,202,000
Net asset value per share attributable to common shares (in dollars per share)		$ 18.91

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS/CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Loans held for investment, cost		$ 91,879
Common shares, par value (in dollars per share)	$ 0.001	$ 0.001
Common shares issued (in shares)	10,217,009
Common shares outstanding (in shares)	10,217,009	10,202,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS/CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
INCOME FROM INVESTMENTS/INVESTMENT INCOME:
Interest income from investments	$ 3,055		$ 5,056
Less: interest and related expenses	192		192
Income from investments, net	2,863		4,864
Dividend income		$ 3,388		$ 7,517
Interest income		2		23
Other income		10		25
Total investment income		3,400		7,565
OTHER EXPENSES/EXPENSES:
Base management fees	721		1,436
General and administrative expenses	714		1,306
Reimbursement of shared services expenses	275		601
Advisory		547		1,252
Legal		138		175
Compliance and internal audit		34		68
Shareholder reporting		17		35
Custodian		24		48
Administrative		24		48
Preferred share remarketing and auction fees		18		36
Audit		12		24
Trustees' fees and expenses		13		28
Other		51		104
Total expenses before interest expense		878		1,818
Interest expense		297		851
Total expenses	1,710	1,175	3,343	2,669
Income before income tax benefit (expense)	1,153		1,521
Net investment income		2,225		4,896
Income tax benefit (expense)	7		(11)
Net income	$ 1,160		$ 1,510
Weighted average common shares outstanding, basic (in shares)	10,208		10,205
Weighted average common shares outstanding, diluted(in shares)	10,208		10,205
Net income per common share, basic (in dollars per share)	$ 0.11		$ 0.15
Net income per common share, diluted (in dollars per share)	$ 0.11		$ 0.15
Realized and change in unrealized gain (loss) on investments
Net realized gain on investments		6		921
Net change in unrealized gains (losses) on investments		38,386		(84,960)
Net realized and change in unrealized gains (losses) on investments		38,392		(84,039)
Net increase (decrease) in net assets before preferred distributions resulting from operations		40,617		(79,143)
Distributions to preferred shareholders		(87)		(213)
Net increase (decrease) in net assets attributable to common shares resulting from operations		$ 40,530		$ (79,356)

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY/CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS - USD ($) $ in Thousands	Total	Common Shares	Additional Paid In Capital	Cumulative Net Income	Cumulative Distributions
Beginning balance (in shares) at Dec. 31, 2019	10,202,000
Ending balance (in shares) at Jun. 30, 2020	10,202,000
Increase (decrease) in net assets resulting from operations
Net investment income	$ 4,896
Net realized gain on investments	921
Net change in unrealized gains (losses) on investments	(84,960)
Distributions to preferred shareholders	(213)
Net increase (decrease) in net assets attributable to common shares resulting from operations	(79,356)
Distributions to common shareholders from:
Distributable earnings	(4,387)
Total distributions to common shareholders	(4,387)
Total increase (decrease) in net assets attributable to common shares	(83,743)
Beginning of period at Dec. 31, 2019	255,326
End of period at Jun. 30, 2020	$ 171,583
Beginning balance (in shares) at Dec. 31, 2019	10,202,000
Ending balance (in shares) at Jun. 30, 2020	10,202,000
Beginning balance (in shares) at Mar. 31, 2020	10,202,000
Ending balance (in shares) at Jun. 30, 2020	10,202,000
Increase (decrease) in net assets resulting from operations
Net investment income	$ 2,225
Net realized gain on investments	6
Net change in unrealized gains (losses) on investments	38,386
Distributions to preferred shareholders	(87)
Net increase (decrease) in net assets attributable to common shares resulting from operations	40,530
Distributions to common shareholders from:
Distributable earnings	(1,020)
Total distributions to common shareholders	(1,020)
Total increase (decrease) in net assets attributable to common shares	39,510
Beginning of period at Mar. 31, 2020	132,073
End of period at Jun. 30, 2020	$ 171,583
Beginning balance (in shares) at Mar. 31, 2020	10,202,000
Ending balance (in shares) at Jun. 30, 2020	10,202,000
Beginning balance (in shares) at Dec. 31, 2020	10,202,000	10,202,000
Beginning balance at Dec. 31, 2020	$ 192,894	$ 10	$ 192,884	$ 0	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	350			350
Ending balance (in shares) at Mar. 31, 2021		10,202,000
Ending balance at Mar. 31, 2021	193,244	$ 10	192,884	350	(1,530)
Beginning of period at Dec. 31, 2020	$ 192,894
Beginning balance (in shares) at Dec. 31, 2020	10,202,000	10,202,000
Ending balance (in shares) at Mar. 31, 2021		10,202,000
Beginning balance (in shares) at Dec. 31, 2020	10,202,000	10,202,000
Beginning balance at Dec. 31, 2020	$ 192,894	$ 10	192,884	0	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 1,510
Ending balance (in shares) at Jun. 30, 2021	10,217,009	10,217,000
Ending balance at Jun. 30, 2021	$ 193,055	$ 10	193,065	1,510
Beginning of period at Dec. 31, 2020	$ 192,894
Beginning balance (in shares) at Dec. 31, 2020	10,202,000	10,202,000
Ending balance (in shares) at Jun. 30, 2021	10,217,009	10,217,000
Beginning balance (in shares) at Mar. 31, 2021		10,202,000
Beginning balance at Mar. 31, 2021	$ 193,244	$ 10	192,884	350	(1,530)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share grants (in shares)		15,000
Share grants	181		181
Net income	1,160			1,160
Distributions	$ (1,530)				$ (1,530)
Ending balance (in shares) at Jun. 30, 2021	10,217,009	10,217,000
Ending balance at Jun. 30, 2021	$ 193,055	$ 10	$ 193,065	$ 1,510
Beginning balance (in shares) at Mar. 31, 2021		10,202,000
Ending balance (in shares) at Jun. 30, 2021	10,217,009	10,217,000

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2021USD ($)	Jun. 30, 2021USD ($)	Jun. 30, 2020USD ($)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 1,160	$ 1,510
Net increase (decrease) in net assets before preferred distributions resulting from operations			$ (79,143)
Adjustments to reconcile net income to net cash used in operating activities:
Share based compensation		181
Amortization of deferred financing costs		34
Amortization of loan origination and exit fees		(641)
Purchases of long term investments			(5,789)
Proceeds from sales of long term investments			4,901
Net sales of short term investments			(402)
Changes in operating assets and liabilities:
Accrued interest receivable and interest advances		(677)
Prepaid expenses and other assets		(1,983)
Accounts payable, accrued liabilities and deposits		(1,369)
Due to related persons		852
Dividends and interest receivable and other assets			979
Prepaid expenses			54
Interest payable			(89)
Payable for securities purchased			(10)
Advisory fee payable			(62)
Compliance and internal audit costs payable			68
Administrative fee payable			(1)
Accrued expenses and other liabilities			61
Net unrealized losses on investments			84,960
Net realized gain on investments and foreign currency transactions			(921)
Net cash used in operating activities		(2,093)	4,606
CASH FLOWS FROM INVESTING ACTIVITIES:
Origination of loans held for investment		(117,255)
Additional funding of loans held for investment		(820)
Net cash used in investing activities		(118,075)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from master repurchase facility		49,172
Payments of deferred financing costs		(431)
Distributions paid to preferred shareholders			(219)
Distributions paid to common shareholders			(4,387)
Distributions		(1,530)
Net cash provided by financing activities		47,211	(4,606)
Decrease in cash, cash equivalents and restricted cash		(72,957)	0
Cash, cash equivalents and restricted cash at beginning of period		103,564	7
Cash, cash equivalents and restricted cash at end of period	30,607	30,607	7
SUPPLEMENTAL DISCLOSURES:
Interest paid		120	940
Income taxes paid		2,477
Cash and cash equivalents	30,402	30,402
Restricted cash	205	205
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statement of cash flows	$ 30,607	$ 30,607	$ 7

CONSOLIDATED PORTFOLIO OF INVES

CONSOLIDATED PORTFOLIO OF INVESTMENTS $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)
Investment Company, Financial Highlights [Line Items]
Net assets attributable to common shareholders	100.00%
Other assets less liabilities	$ 101,015	[1]
Net assets attributable to common shares	$ 192,894
Mortgage Loan
Investment Company, Financial Highlights [Line Items]
Net assets attributable to common shareholders	47.60%	[2]
Cost	$ 91,879
Value	91,879
Mortgage Loan | Office Property, Downers Grove, IL
Investment Company, Financial Highlights [Line Items]
Committed Principal Amount	30,000
Cost	29,232
Value	29,232
Mortgage Loan | Laboratory Property, Durham, NC
Investment Company, Financial Highlights [Line Items]
Committed Principal Amount	21,500
Cost	13,281
Value	13,281
Mortgage Loan | Retail Property, Los Angeles, CA
Investment Company, Financial Highlights [Line Items]
Committed Principal Amount	24,600
Cost	17,029
Value	17,029
Mortgage Loan | Office Property, Aurora, IL
Investment Company, Financial Highlights [Line Items]
Committed Principal Amount	16,500
Cost	14,540
Value	14,540
Mortgage Loan | Laboratory Property, Berkeley, CA
Investment Company, Financial Highlights [Line Items]
Committed Principal Amount	19,120
Cost	17,797
Value	$ 17,797
Non-Mortgage Loan Investments
Investment Company, Financial Highlights [Line Items]
Net assets attributable to common shareholders	52.40%	[1]
LIBOR | Mortgage Loan | Office Property, Downers Grove, IL
Investment Company, Financial Highlights [Line Items]
Coupon Rate	0.0425
LIBOR | Mortgage Loan | Laboratory Property, Durham, NC
Investment Company, Financial Highlights [Line Items]
Coupon Rate	0.0435
LIBOR | Mortgage Loan | Retail Property, Los Angeles, CA
Investment Company, Financial Highlights [Line Items]
Coupon Rate	0.0425
LIBOR | Mortgage Loan | Office Property, Aurora, IL
Investment Company, Financial Highlights [Line Items]
Coupon Rate	0.0435
LIBOR | Mortgage Loan | Laboratory Property, Berkeley, CA
Investment Company, Financial Highlights [Line Items]
Coupon Rate	0.0435
[1]	Please refer to our Consolidated Statement of Assets and Liabilities for further information on these amounts.
[2]	The mortgage loans we invest in are not registered under the securities laws. These mortgage loans are valued using Level III inputs as defined in the fair value hierarchy under U.S. generally accepted accounting principles, or GAAP.

Organization

Organization	6 Months Ended
	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization RMR Mortgage Trust, or we, us, our, or the Trust, is a Maryland statutory trust. We were previously registered under the Investment Company Act of 1940, as amended, or the 1940 Act, as a closed-end management investment company. Our investment objective while we operated as a registered investment company was investing in equity securities of real estate companies. On January 5, 2021, the Securities and Exchange Commission, or the SEC, issued an order granting our request to deregister as an investment company under the 1940 Act, or the Deregistration. As a result, the Trust changed its SEC registration to a reporting company under the Securities Exchange Act of 1934, as amended, or the Exchange Act. The issuance of the deregistration order enabled us to proceed with full implementation of our new business mandate to operate as a real estate investment trust, or REIT, that focuses primarily on originating and investing in first mortgage whole loans secured by middle market and transitional commercial real estate, or CRE, or the Business Change. On April 26, 2021, we and Tremont Mortgage Trust, or TRMT, entered into an Agreement and Plan of Merger, or the Merger Agreement, pursuant to which, on the terms and subject to the satisfaction or waiver of the conditions thereof, TRMT has agreed to merge with and into us, with us continuing as the surviving entity in the merger, or the Merger. Pursuant to the terms and subject to the conditions set forth in the Merger Agreement, at the effective time of the Merger, or the Effective Time, each common share of beneficial interest, $0.01 par value per share, of TRMT, or TRMT Common Shares, issued and outstanding immediately prior to the Effective Time will be converted into the right to receive 0.52, or the Exchange Ratio, of one newly issued common share of beneficial interest, $0.001 par value per share, of our common shares, or the RMRM Common Shares, subject to adjustment as described in the Merger Agreement, with cash paid in lieu of fractional shares. Under the Merger Agreement, the Exchange Ratio is fixed and will not be adjusted to reflect changes in the market price of the RMRM Common Shares or the TRMT Common Shares prior to the Effective Time. Pursuant to the Merger Agreement, at the Effective Time, any unvested TRMT Common Share awards outstanding under TRMT's equity compensation plan generally will be converted into an unvested RMRM Common Share award under our equity compensation plan, subject to substantially similar vesting requirements and other terms and conditions, determined by multiplying the number of unvested TRMT Common Shares subject to such award by the Exchange Ratio (rounded down to the nearest whole number). The Merger and the other transactions contemplated by the Merger Agreement are collectively referred to herein as the other Transactions. We have incurred $2,183 of transaction costs related to the Merger that are included in prepaid expenses and other assets in the condensed consolidated balance sheet. Following the consummation of the Merger, the combined company will continue to be managed by our and TRMT’s current manager, Tremont Realty Advisors LLC, or TRA or our Manager, pursuant to the terms of our existing management agreement with TRA. Contemporaneously with the execution of the Merger Agreement, we, TRMT and TRA entered into a letter agreement, or the TRA Letter Agreement, pursuant to which, on the terms and subject to conditions contained therein, we, TRMT and TRA have acknowledged and agreed that, effective upon consummation of the Merger, TRMT shall have terminated its management agreement with TRA, and TRA shall have waived its right to receive payment of the termination fee pursuant to such agreement. In consideration of this waiver, we have agreed that, effective upon consummation of the Merger and the termination of TRMT's management agreement with TRA, certain of the expenses TRA had paid pursuant to such management agreement will be included in the “Termination Fee” under and as defined in our existing management agreement with TRA. The TRA Letter Agreement further provides that such termination by TRMT and waiver by TRA shall apply only in respect of the Merger and will not apply in respect of any competing proposal or superior proposal (as those terms are defined in the Merger Agreement) or to any other transaction or arrangement. Contemporaneously with the execution of the Merger Agreement, we entered into a voting agreement with TRA, or the Voting Agreement, pursuant to which TRA has agreed to vote all of the TRMT Common Shares which it is entitled to vote in favor of approval of the Merger and the other Transactions to which TRMT is a party at the special meeting of TRMT's shareholders scheduled to be held on September 17, 2021 for that purpose and against any competing acquisition proposal. Also contemporaneously with the execution of the Merger Agreement, TRMT entered into a voting agreement with Diane Portnoy, pursuant to which Ms. Portnoy has agreed to vote all of our common shares which she is entitled to vote in favor of approval of the issuance of the RMRM Common Shares in the Merger, or the Merger Share Issuance, at the special meeting of our shareholders held for that purpose and against any competing acquisition proposal.

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation. Prior to the Business Change, the Trust was accounted for as an investment company in accordance with the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, Topic 946, Financial Services - Investment Companies , or the Predecessor Basis. Upon the Business Change, we discontinued the application of guidance in ASC Topic 946 and prospectively applied the guidance required under GAAP, applicable to companies that are not investment companies, or the Successor Basis. As a result of these changes, our condensed consolidated financial statements as of and for the three and six months ended June 30, 2021 are presented separately from our financial statements on the Predecessor Basis, as of and for the periods prior to December 31, 2020. The results of operations from January 1, 2021 through January 4, 2021 were not material to the Trust's condensed consolidated financial statements and have not been presented separately, but they are included in our condensed consolidated statement of operations for the six months ended June 30, 2021. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement of results for the interim periods have been included. All intercompany transactions and balances with or among our consolidated subsidiaries have been eliminated. Operating results for interim periods are not necessarily indicative of the results that may be expected for the full year. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect reported amounts. Actual results could differ from those estimates. Significant estimates in the accompanying condensed consolidated financial statements include the fair value of financial instruments.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Consolidation. These consolidated financial statements include the accounts of us and our subsidiaries, all of which are 100% owned directly by us. All intercompany transactions and balances with or among our consolidated subsidiaries have been eliminated. For each investment we make, we evaluate whether consolidation of the borrower's financial statements is required under GAAP. GAAP addresses the application of consolidation principles to an investor with a controlling financial interest. Cash, Cash Equivalents and Restricted Cash. We consider highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. Restricted cash primarily consists of deposit proceeds from potential borrowers when originating loans, which may be returned to the applicable borrower upon the closing of the loan, after deducting any transaction costs paid by us for the benefit of such borrower. Loans Held for Investment. Generally, our loans are classified as held for investment based upon our intent and ability to hold them until maturity, or if earlier, repayment. Loans that are held for investment are carried at cost, net of unamortized loan origination and accreted exit fees that are required to be recognized in the carrying value of the loans in accordance with GAAP, unless the loans are deemed to be impaired. Loans that we have a plan to sell or liquidate are held at the lower of cost or fair value less cost to sell. We evaluate each of our loans for impairment at least quarterly by assessing a variety of risk factors in relation to each loan and assigning a risk rating to each loan based on those factors. Factors considered in these evaluations include, but are not limited to, property type, geographic and local market dynamics, physical condition, leasing and tenant profile, projected cash flow, risk of loss, current loan to value ratio, or LTV, debt yield, collateral performance, structure, exit plan and sponsorship. Loans are rated “1” (lower risk) through “5” (impaired/loss likely) as defined below: "1" lower risk—Criteria reflects a sponsor having a strong financial condition and low credit risk and our evaluation of management's experience; collateral performance exceeding performance metrics included in the business plan or credit underwriting; and the property demonstrating stabilized occupancy and/or market rates, resulting in strong current cash flow and net operating income and/or having a very low LTV. "2" average risk—Criteria reflects a sponsor having a stable financial condition and our evaluation of management's experience; collateral performance meeting or exceeding substantially all performance metrics included in the business plan or credit underwriting; and the property demonstrating improved occupancy at market rents, resulting in sufficient current cash flow and/or having a low LTV. "3" acceptable risk—Criteria reflects a sponsor having a history of repaying loans at maturity and meeting its credit obligations and our evaluation of management's experience; collateral performance expected to meet performance metrics included in the business plan or credit underwriting; and the property having a moderate LTV. New loans and loans with a limited history will typically be assigned this rating and will be adjusted to other levels from time to time as appropriate. "4" higher risk—Criteria reflects a sponsor having a history of unresolved missed or late payments, maturity extensions and difficulty timely fulfilling its credit obligations and our evaluation of management's experience; collateral performance failing to meet the business plan or credit underwriting; the existence of a risk of default possibly leading to a loss and/or potential weaknesses that deserve management’s attention; and/or the property having a high LTV. "5" impaired/loss likely—Criteria reflects a very high risk of realizing a principal loss or having incurred a principal loss; a sponsor having a history of default payments, trouble fulfilling its credit obligations, deeds in lieu of foreclosures, and/or bankruptcies; collateral performance is significantly worse than performance metrics included in the business plan; loan covenants or performance milestones having been breached or not attained; timely exit via sale or refinancing being uncertain; and/or the property having a very high LTV. See Note 5 for further information regarding our current loan portfolio’s assessment under our internal risk rating policy. Impairment occurs when it is deemed probable that we will not be able to collect all amounts due under a loan according to its contractual terms. Impairment will then be measured based on the present value of the expected future cash flows discounted at the loan's contractual effective rate and the fair value of any available collateral, net of any costs we expect to incur to realize that value. The determination of this estimated fair value involves judgments and assumptions based on objective and subjective factors. Consideration will be given to various factors, such as business plans, property occupancies, tenant profiles, rental rates, operating expenses and borrowers’ repayment plans, among others, and will require significant judgments regarding certain circumstances, such as guarantees, if any. Upon measurement of an impairment, we will record an allowance to reduce the carrying value of the loan accordingly, and record a corresponding charge to net income in our condensed consolidated statements of operations. As of June 30, 2021, we have not recorded any allowances for losses as we believe it is probable that we will collect all amounts due pursuant to the contractual terms of our loan agreements with borrowers. Fair Value of Financial Instruments. FASB ASC Topic 820-10, Fair Value Measurements and Disclosures , defines fair value, establishes a framework for measuring fair value in accordance with GAAP and expands the required disclosure regarding fair value measurements. ASC Topic 820-10 defines fair value as the price that would be received for a financial instrument in a current sale, which assumes an orderly transaction between market participants on the measurement date. We determine the estimated fair value of financial assets and liabilities using the three-tier fair value hierarchy established by GAAP, which prioritizes the inputs used in measuring fair value. 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 inputs that may be used to measure fair value are as follows: Level I—Inputs include quoted prices in active markets for identical assets or liabilities that we have the ability to access. Level II—Inputs include quoted prices in markets that are less active or inactive or for which all significant inputs are observable, either directly or indirectly. Level III—Inputs include unobservable prices and are supported by little or no market activity and are significant to the overall fair value measurement. Loan Deferred Fees. Loan origination and exit fees are reflected in loans held for investment, net, in our condensed consolidated balance sheet and include fees charged to borrowers. These fees are amortized and accreted, respectively, into interest income over the life of the related loans held for investment. Deferred Financing Costs. Costs incurred in connection with financings are capitalized and recorded as an offset to the related liability and amortized over the respective financing terms and are recorded in our condensed consolidated statements of operations as a component of interest and related expenses. At June 30, 2021, we had approximately $397 of capitalized financing costs, net of amortization. Net Income Per Common Share. We calculate net income per common share, or EPS, by dividing net income by the weighted average number of common shares outstanding during the period. At June 30, 2021 and December 31, 2020, no warrants, options or other types or classes of securities existed that could be potentially dilutive to our common shares outstanding. Revenue Recognition. Interest income related to our first mortgage whole loans secured by CRE will generally be accrued based on the coupon rates applied to the outstanding principal balance of such loans. Fees, premiums and discounts, if any, will be amortized or accreted into interest income over the remaining lives of the loans using the effective interest method, as adjusted for any prepayments. If a loan's interest or principal payments are not paid when due and there is uncertainty that such payments will be collected, the loan may be categorized as non-accrual and no interest will be recorded unless it is collected. When all overdue payments are collected and, in our judgment, a loan is likely to remain current, it may be re-categorized as accrual. For loans purchased at a discount, GAAP limits the yield that may be accreted (accretable yield) to the excess of the investor’s estimate of undiscounted expected principal, interest and other cash flows (cash flows expected at acquisition to be collected) over the investor’s initial investment in the loan. GAAP also requires that the excess of contractual cash flows over cash flows expected to be collected (non-accretable difference) not be recognized as an adjustment of yield, loss accrual or valuation allowance. Subsequent increases in cash flows expected to be collected from such loans generally will be recognized prospectively through adjustment of the loan’s yield over its remaining life. Decreases in cash flows expected to be collected will be recorded as an impairment. Securities Transactions and Investment Income. Under the Predecessor Basis, we recorded securities transactions on a trade date basis, dividend income on the ex-dividend date and any non-cash dividends at the fair market value of the securities received. We use the accrual method for recording interest income, including accretion of original issue discount, where applicable, and accretion of discount on short term investments and identified cost basis for realized gains and losses from securities transactions. The difference between cost and fair value for investments we continue to hold is reflected as unrealized gain (loss), and any change in that amount from a prior period is reflected in the accompanying consolidated statement of operations.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update, or ASU, No. 2016-13, Financial Instruments - Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments , which requires that entities use a new forward-looking “expected loss” model that generally will result in the earlier recognition of allowance for credit losses. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. As a smaller reporting company, we expect to adopt ASU No. 2016-13 on January 1, 2023. We are currently assessing the potential impact the adoption of ASU No. 2016-13 will have on our condensed consolidated financial statements.

Loans Held for Investment

Loans Held for Investment	6 Months Ended
	Jun. 30, 2021
Receivables [Abstract]
Loans Held for Investment	Loans Held for Investment We originate first mortgage loans secured by middle market and transitional CRE, which are generally to be held as long term investments. We funded our existing loan portfolio using cash on hand and advancements under our master repurchase facility with UBS AG, or UBS, or our Master Repurchase Facility. See Note 6 for further information regarding our Master Repurchase Facility. The table below provides overall statistics for our loan portfolio as of June 30, 2021 and December 31, 2020: As of June 30, 2021 As of December 31, 2020 (Predecessor Basis) Number of loans 9 5 Total loan commitments $ 250,710 $ 111,720 Unfunded loan commitments (1)(2) $ 38,291 $ 18,857 Principal balance (2) $ 212,515 $ 92,863 Unamortized net deferred origination and exit fees $ (1,773) $ (984) Carrying value $ 210,742 $ 91,879 Weighted average coupon rate 4.98 % 5.08 % Weighted average all in yield (3) 5.62 % 5.71 % Weighted average LIBOR floor 0.76 % 0.78 % Weighted average maximum maturity (years) (4) 4.2 4.2 Weighted average risk rating 2.9 3.0 Weighted average LTV (5) 68 % 68 % (1) Unfunded loan commitments are primarily used to finance property and building improvements and leasing capital and are generally funded over the term of the loan. (2) The principal balance at June 30, 2021 includes $96 of capitalized interest that does not reduce the amount of unfunded loan commitments. (3) All in yield represents the yield on a loan, excluding any repurchase debt funding applicable to the loan and including amortization of deferred fees over the initial term of the loan. (4) Maximum maturity assumes all borrower loan extension options have been exercised, which options are subject to the borrower meeting certain conditions. (5) LTV represents the initial loan amount divided by the underwritten in-place value of the underlying collateral at closing. The table below represents our loan activities during the three months ended June 30, 2021: Principal Balance Deferred Fees Carrying Value Balance at March 31, 2021 (Successor Basis) $ 148,652 $ (1,405) $ 147,247 Additional funding 693 — 693 Originations 63,170 (755) 62,415 Net amortization of deferred fees — 387 387 Balance at June 30, 2021 (Successor Basis) $ 212,515 $ (1,773) $ 210,742 The table below represents our loan activities during the six months ended June 30, 2021: Principal Balance Deferred Fees Carrying Value Balance at December 31, 2020 (Predecessor Basis) $ 92,863 $ (984) $ 91,879 Additional funding 967 — 967 Originations 118,685 (1,430) 117,255 Net amortization of deferred fees — 641 641 Balance at June 30, 2021 (Successor Basis) $ 212,515 $ (1,773) $ 210,742 In July 2021, we originated a first mortgage loan of $27,385 to refinance a multi-tenant office building located in Plano, TX. This loan requires the borrower to pay interest at the floating rate of LIBOR plus a premium of 475 basis points per annum. This floating rate loan includes an initial funding of $24,635 and a future funding allowance of $2,750 for tenant improvements, leasing commissions and capital expenditures and has a three-year initial term with two, one-year extension options, subject to the borrower meeting certain conditions. Also in July 2021, we originated a first mortgage loan of $19,688 to finance the acquisition of a 100-unit apartment building located in Portland, OR. This loan requires the borrower to pay interest at the floating rate of LIBOR plus a premium of 357 basis points per annum. This floating rate loan was fully funded at closing and has a three-year initial term with two, one-year extension options, subject to the borrower meeting certain conditions. The tables below detail the property type and geographic location of the properties securing the loans in our portfolio as of June 30, 2021 and December 31, 2020: June 30, 2021 December 31, 2020 Property Type Number of Loans Carrying Value Percentage of Value Number of Loans Carrying Value Percentage of Value Office (1) 4 $ 68,395 33 % 2 $ 38,106 41 % Multifamily 1 44,205 21 % — — — % Lab 2 31,199 15 % 2 31,078 34 % Retail 1 17,780 8 % 1 17,029 19 % Industrial (1) 1 49,163 23 % — 5,666 6 % 9 $ 210,742 100 % 5 $ 91,879 100 % (1) Two loan investments secured by mixed use properties consisting of office space and an industrial warehouse in Aurora, IL and Colorado Springs, CO are classified as office for the purpose of counting the number of loans in our portfolio because the majority of the square footage of the properties consists of office space. The carrying value of these loan investments are reflected in office and industrial based on the fair value of the buildings at the time of origination relative to the total fair value of the properties. June 30, 2021 December 31, 2020 Geographic Location Number of Loans Carrying Value Percentage of Value Number of Loans Carrying Value Percentage of Value East 1 $ 33,908 16 % — $ — — % South 2 24,184 11 % 1 13,281 14 % West 3 64,537 31 % 2 34,826 38 % Midwest 3 88,113 42 % 2 43,772 48 % 9 $ 210,742 100 % 5 $ 91,879 100 % Loan Risk Ratings We evaluate each of our loans for impairment at least quarterly by assessing a variety of risk factors in relation to each loan and assigning a risk rating to each loan based on those factors. The higher the number, the greater the risk level. The following table allocates the carrying value of our loan portfolio at June 30, 2021 and December 31, 2020 based on our internal risk rating policy: June 30, 2021 (Successor Basis) December 31, 2020 (Predecessor Basis) Risk Rating Number of Loans Carrying Value Number of Loans Carrying Value 1 — $ — — $ — 2 1 17,850 — — 3 8 192,892 5 91,879 4 — — — — 5 — — — — 9 $ 210,742 5 $ 91,879 The weighted average risk rating of our loans by carrying value was 2.9 and 3.0 as of June 30, 2021 and December 31, 2020, respectively. We did not have any impaired loans or nonaccrual loans as of June 30, 2021 or December 31, 2020. See Note 3 for further information regarding our loan risk ratings.

Debt Agreements

Debt Agreements	6 Months Ended
	Jun. 30, 2021
Debt Disclosure [Abstract]
Debt Agreements	Debt Agreements The table below summarizes our debt agreements as of June 30, 2021: Debt Obligation Weighted Average Collateral Maximum Facility Size Principal Balance Carrying Value Coupon Rate Remaining Maturity (1) (years) Principal Balance Fair Value (2) June 30, 2021: Master Repurchase Facility $ 193,055 $ 49,172 $ 48,775 L + 2.05% 2.5 $ 212,515 $ 208,678 (1) The weighted average remaining maturity is determined using the current maturity date of the corresponding loans, assuming no borrower loan extension options have been exercised. Our Master Repurchase Facility matures on February 18, 2024. (2) See Note 7 for further discussion of our financial assets and liabilities not carried at fair value. On February 18, 2021, one of our wholly owned subsidiaries entered into a master repurchase agreement, or the Master Repurchase Agreement, with UBS for our Master Repurchase Facility, pursuant to which we may sell to UBS, and later repurchase, commercial mortgage loans, or the Purchased Assets. The expiration date of the Master Repurchase Agreement is February 18, 2024, unless extended or earlier terminated in accordance with the terms of the Master Repurchase Agreement. Pursuant to the Master Repurchase Agreement, we will pay UBS a non-refundable upfront fee that is equal to 0.50% of the applicable tranche amount on each Purchase Date (as each term is defined in the Master Repurchase Agreement). While the Master Repurchase Facility has no maximum facility amount, we expect the advancements under the Master Repurchase Facility to not exceed our equity, which, as of June 30, 2021, is $193,055. Our equity will change from time-to-time and may increase or decrease. We expect that the size of our Master Repurchase Facility may similarly change as our equity changes. Under our Master Repurchase Facility, the initial purchase price paid by UBS for each Purchased Asset is up to 75% of the lesser of the market value of the Purchased Asset and the unpaid principal balance of such Purchased Asset, subject to UBS’s approval. Upon the repurchase of a Purchased Asset, we are required to pay UBS the outstanding purchase price of the Purchased Asset, accrued interest and all accrued and unpaid expenses of UBS relating to such Purchased Assets. The pricing rate (or interest rate) relating to a Purchased Asset is equal to one month LIBOR plus a customary premium within a fixed range, determined by the debt yield and property type of the Purchased Asset’s real estate collateral. UBS has the discretion under our Master Repurchase Agreement to make advancements at margins higher than 75%. The weighted average interest rate for advancements under our Master Repurchase Facility was 2.39% for both the three and six months ended June 30, 2021, respectively. In connection with our Master Repurchase Agreement, we entered into a guaranty, or the Guaranty, which requires us to guarantee 25% of the aggregate repurchase price, and 100% of losses in the event of certain bad acts as well any costs and expenses of UBS related to our Master Repurchase Agreement. The Guaranty also requires us to comply with customary financial covenants, which include the maintenance of a minimum tangible net worth, minimum cash liquidity and a total indebtedness to stockholders' equity ratio. Our Master Repurchase Facility also contains margin maintenance provisions that provide UBS with the right, in certain circumstances related to a Credit Event (as defined in the Master Repurchase Agreement) to redetermine the value of Purchased Assets. Where a decline in the value of such Purchased Assets has resulted in a margin deficit, UBS may require us to eliminate any margin deficit through a combination of Purchased Asset repurchases and cash transfers to UBS subject to UBS’s approval. As of June 30, 2021, we were in compliance with all covenants and other terms under our Master Repurchase Agreement and the Guaranty. As of June 30, 2021 and July 30, 2021, we had a $49,172 and a $69,172, respectively, aggregate outstanding principal balance under our Master Repurchase Facility. For the three and six months ended June 30, 2020, we recorded interest expense of $297 and $851, respectively, related to our former revolving credit facility with BNP Paribas Prime Brokerage International Ltd. In November 2020, we repaid all outstanding amounts and terminated that facility.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2021
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments ASC Topic 820, Fair Value Measurements , establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level I) and the lowest priority to unobservable inputs (Level III). A financial asset’s or financial liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. As of June 30, 2021 and December 31, 2020, the carrying values of cash and cash equivalents, restricted cash and accounts payable approximate their fair values due to the short term nature of these financial instruments. At June 30, 2021, the outstanding principal balance under our Master Repurchase Facility approximated the fair value, as interest was based on floating rates based on LIBOR plus a spread, and the spread was consistent with those demanded by the market. We estimate the fair values of our loans held for investment and outstanding principal balances under our Master Repurchase Facility by using Level III inputs, including discounted cash flow analyses and currently prevailing market terms as of the measurement date, determined by significant unobservable market inputs, which include holding periods, discount rates based on LTV, property types and loan pricing expectations which are corroborated by a comparison with other market participants to determine the appropriate market spread to add to the one month LIBOR (Level III inputs as defined in the fair value hierarchy under GAAP). The table below provides information regarding financial assets and liabilities not carried at fair value on a recurring basis in our condensed consolidated balance sheets: June 30, 2021 (Successor Basis) December 31, 2020 (Predecessor Basis) Carrying Value Fair Value Carrying Value Fair Value Financial assets Loans held for investment $ 210,742 $ 209,034 $ 91,879 $ 91,879 Financial liabilities Master Repurchase Facility $ 48,775 $ 48,238 — —

Shareholders' Equity

Shareholders' Equity	6 Months Ended
	Jun. 30, 2021
Equity [Abstract]
Shareholders' Equity	Shareholders' Equity Common Share Awards We have common shares available for issuance under the terms of our 2021 Equity Compensation Plan, or the 2021 Plan. The values of the share awards are based upon the closing price of our common shares on The Nasdaq Stock Market LLC, or Nasdaq, on the date of award. The common shares that we have awarded to our Trustees vested immediately. We have not made any awards of common shares to date under the 2021 Plan to our officers and other employees of our Manager and of RMR LLC. We expect that the awards of common shares that we award to these persons will vest in five equal annual installments beginning on the date of award. We will recognize the value of awarded shares in general and administrative expenses ratably over the vesting period. We will recognize any share forfeitures as they occur. On May 27, 2021, in accordance with our Trustee compensation arrangements, we awarded to each of our five Trustees 3,000 of our common shares, valued at $12.10 per common share, the closing price of our common shares on the Nasdaq that day. Distributions For the six months ended June 30, 2021, we declared and paid a distribution to common shareholders as follows: Record Date Payment Date Distribution per Share Total Distribution April 26, 2021 May 20, 2021 $ 0.15 $ 1,530 On July 15, 2021, we declared a quarterly distribution of $0.15 per common share, or approximately $1,533 in aggregate, to shareholders of record as of July 26, 2021. We expect to pay this distribution on or about August 19, 2021.

Management Agreement with our M

Management Agreement with our Manager	6 Months Ended
	Jun. 30, 2021
Related Party Transactions [Abstract]
Management Agreement with our Manager	Management Agreement with our Manager We have no employees. The personnel and various services we require to operate our business are provided to us by our Manager, pursuant to a management agreement, which provides for the day to day management of our operations by our Manager, subject to the oversight and direction of our Board of Trustees. Prior Agreements with RMR Advisors Administration Agreement. Prior to its merger with our Manager on January 6, 2021, RMR Advisors LLC, or RMR Advisors, performed administrative functions for us pursuant to an administration agreement with us. RMR Advisors was also a party to a subadministration agreement with State Street Bank and Trust Company, or State Street, to perform substantially all fund accounting and other administrative services for us. Under the administration agreement, RMR Advisors was entitled to reimbursement of the cost of providing administrative services. On January 6, 2021, RMR Advisors merged with and into our Manager, with our Manager being the surviving entity, and our Manager assumed the administration agreement with us and the subadministration agreement with State Street. Each of those agreements was terminated, effective March 16, 2021. We incurred administration service fees of $24 and $48 for the three and six months ended June 30, 2020, respectively, and $15 for the period from January 1, 2021 to March 16, 2021, all of which related to the subadministration service fees payable by RMR Advisors to State Street and reimbursable by us; we did not incur any additional administration service fees beyond those reimbursable amounts for those periods. Investment Advisory Agreement. Prior to January 5, 2021, RMR Advisors provided us with a continuous investment program, made day to day investment decisions and generally managed our business affairs in accordance with our investment objectives and policies as a registered investment company pursuant to an investment advisory agreement. The investment advisory agreement was terminated on January 5, 2021 with our deregistration as an investment company. Pursuant to the investment advisory agreement, RMR Advisors was compensated at an annual rate of 0.85% of our average daily managed assets. We incurred advisory fees of $547 and $1,252 for the three and six months ended June 30, 2020, respectively, and for the period from January 1, 2021 to January 5, 2021, we incurred advisory fees of $22 which is included in base management fees in our condensed consolidated statements of operations. We incurred internal audit and compliance costs reimbursable to RMR Advisors of $34 and $68 for the three and six months ended June 30, 2020, respectively. Current Management Agreement with our Manager Effective January 5, 2021, our Manager provides services to us pursuant to a new management agreement. We recognized base management fees of $721 and $1,414 for the three and six months ended June 30, 2021, respectively. Pursuant to the terms of our management agreement, no management incentive fees are payable until the first full quarter following the effective date of the management agreement and, thereafter, any management incentive fees would be subject to our Manager earning those fees in accordance with the management agreement adopted by us. We did not incur any management incentive fees for the three and six months ended June 30, 2021. We are required to pay or to reimburse our Manager and its affiliates for all other costs and expenses of our operations. Some of these overhead, professional and other services are provided by The RMR LLC Group, or RMR LLC, pursuant to a shared services agreement between our Manager and RMR LLC. We reimburse our Manager for shared services costs our Manager pays to RMR LLC. These reimbursements include an allocation of the cost of personnel employed by RMR LLC and our share of RMR LLC’s costs for providing our internal audit function. These shared services costs are subject to approval by a majority of our Independent Trustees at least annually. We incurred shared services costs of $312 and $664 and payable to our Manager for the three and six months ended June 30, 2021, respectively. We include these amounts in reimbursement of shared services expenses or general and administrative expenses, as applicable, in our condensed consolidated statements of operations. Contemporaneously with the execution of the Merger Agreement, we, TRMT and TRA entered into the TRA Letter Agreement, pursuant to which, on the terms and subject to conditions contained therein, we, TRMT and TRA have acknowledged and agreed that, effective upon consummation of the Merger, TRMT shall have terminated its management agreement with TRA, and TRA shall have waived its right to receive payment of the termination fee pursuant to such agreement. In consideration of this waiver, we have agreed that, effective upon consummation of the Merger and the termination of TRMT’s management agreement with TRA, certain of the expenses TRA had paid pursuant to such management agreement will be included in the “Termination Fee” under and as defined in our existing management agreement with TRA. The TRA Letter Agreement further provides that such termination by TRMT and waiver by TRA shall apply only in respect of the Merger and will not apply in respect of any competing proposal or superior proposal (as those terms are defined in the Merger Agreement) or to any other transaction or arrangement. See Note 1 for further information regarding the TRA Letter Agreement and the Merger.

Related Person Transactions

Related Person Transactions	6 Months Ended
	Jun. 30, 2021
Related Party Transactions [Abstract]
Related Person Transactions	Related Person Transactions We have relationships and historical and continuing transactions with our Manager, RMR LLC, The RMR Group Inc., or RMR Inc., and others related to them, including other companies to which RMR LLC or its subsidiaries provide management services and some of which have trustees, directors or officers who are also our Trustees or officers. Our Manager is a subsidiary of RMR LLC, which is a majority owned subsidiary of RMR Inc., and RMR Inc. is the managing member of RMR LLC. RMR LLC provides certain shared services to our Manager that are applicable to us, and we reimburse our Manager for the amounts it pays for those services. One of our Managing Trustees, Adam Portnoy, is the sole trustee, an officer and the controlling shareholder of ABP Trust, which is the controlling shareholder of RMR Inc., and he is also a director of our Manager, a managing director and the president and chief executive officer of RMR Inc., and an officer and employee of RMR LLC. In connection with the Business Change, our Board of Trustees appointed Thomas J. Lorenzini as our President and G. Douglas Lanois as our Chief Financial Officer and Treasurer. Mr. Lorenzini and Mr. Lanois succeeded Fernando Diaz and Brian E. Donley, respectively, who each resigned from our Company, effective January 5, 2021. In addition, on January 5, 2021, Jennifer B. Clark resigned as our Managing Trustee, and our Board of Trustees elected Matthew P. Jordan as successor Managing Trustee to fill the vacancy created by Ms. Clark’s resignation. Also effective January 1, 2021, Mr. Jordan was appointed as a director and the president and chief executive officer of our Manager. Mr. Jordan is an officer of RMR Inc. and an officer and employee of RMR LLC, and Messrs. Lorenzini and Lanois are officers of RMR LLC and officers and employees of our Manager and/or RMR LLC. Our Independent Trustees also serve as independent directors or independent trustees of other public companies to which RMR LLC or its subsidiaries provide management services. Adam Portnoy serves as the chair of the boards of trustees and boards of directors of several of these public companies and as a managing director or managing trustee of all of these companies. Other officers of RMR LLC, including Mr. Jordan and certain of our other officers and officers of our Manager, serve as managing trustees, managing directors or officers of certain of these companies. Our Manager, Tremont Realty Advisors LLC. We have a management agreement with our Manager to provide management services to us. See Note 9 for further information regarding our management agreement with our Manager. Our Manager also provides management services to TRMT. Tremont Mortgage Trust . As described further in Note 1, on April 26, 2021, we and TRMT entered into the Merger Agreement. Adam D. Portnoy and Matthew P. Jordan, our Managing Trustees, are also TRMT’s managing trustees. Thomas J. Lorenzini, our President, also serves as president of TRMT, and G. Douglas Lanois, our Chief Financial Officer and Treasurer, also serves as chief financial officer and treasurer of TRMT. John L. Harrington serves as one of our Independent Trustees and is also an independent trustee of TRMT, and Joseph L. Morea, one of our Independent Trustees, previously served as an independent trustee of TRMT; Jeffrey P. Somers, one of our Independent Trustees, previously served as an independent trustee of TRMT. See Note 1 for further information regarding the Merger and the other Transactions. For further information about these and other such relationships and certain other related person transactions, refer to our definitive Proxy Statement for our 2021 Annual Meeting of Shareholders, to our Current Report on Form 8-K dated April 26, 2021 and to our joint proxy statement/prospectus that is included in our registration statement on Form S-4 filed with the SEC on June 9, 2021, as subsequently amended and declared effective on July 26, 2021, or the Form S-4.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesWe intend to elect to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, or the IRC, effective for our 2020 taxable year. Accordingly, we generally are not, and will not be, subject to U.S. federal income tax, provided that we meet certain distribution and other requirements. We are subject to certain state and local taxes, certain of which amounts are or will be reported as income taxes in our condensed consolidated statements of operations.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies As of June 30, 2021, we had unfunded commitments of $38,291 related to our loans held for investment that are not reflected in our condensed consolidated balance sheet. These unfunded commitments had a weighted average initial maturity of 2.5 years as of June 30, 2021. See Note 5 for further information related to our loans held for investment.

Legal Proceeding and Claims

Legal Proceeding and Claims	6 Months Ended
	Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Legal Proceeding and Claims	Note 13. Legal Proceedings and Claims As of July 30, 2021, four lawsuits have been filed by purported shareholders of ours and TRMT in connection with the proposed Merger between us and TRMT. The lawsuits were brought by the plaintiffs individually and are captioned Bishins v. Tremont Mortgage Trust, et al. , Case No. 1:21-cv-05435 (S.D.N.Y., filed June 21, 2021), Lee v. Tremont Mortgage Trust, et al ., Case No. 1:21-cv-05618 (S.D.N.Y., filed June 29, 2021), Merewether v. Tremont Mortgage Trust, et al ., Case No. 1:21-cv-13116 (D.N.J., filed June 29, 2021) and Parthenakis v. RMR Mortgage Trust, et al ., Case No. 1:21-cv-05694 (S.D.N.Y, filed July 1, 2021), each, a complaint, and collectively, the complaints. The Bishins , Lee and Merewether complaints name as defendants TRMT and the TRMT board of trustees. The Bishins and Lee complaints also name RMRM as a defendant. The Parthenakis complaint names as defendants us and our Board of Trustees. The plaintiffs generally assert claims under Section 14(a) and Section 20(a) of the Exchange Act, contending that the registration statement on Form S-4 filed with the SEC on June 9, 2021, and serving as the preliminary joint proxy statement/prospectus, omitted or misrepresented material information regarding the proposed merger between us and TRMT. The complaints generally seek injunctive relief preventing us and TRMT from consummating the Merger, rescission or rescissory damages, an award of plaintiffs’ costs, including attorneys’ fees and expenses, and such other relief the court may deem just and proper. The Bishins complaint also seeks a declaration that the Merger Agreement was entered into in breach of the Bishins individual defendants’ fiduciary duties and is therefore unlawful and unenforceable. The Lee and Merewether complaints additionally seek a declaration that the defendants violated Sections 14(a) and 20(a) of the Exchange Act and an order directing the defendants to disseminate a registration statement that does not contain any untrue or misleading statements of material fact. The Parthenakis complaint also seeks an order requiring the Parthenakis defendants to account to plaintiffs for all damages suffered as a result of their wrongdoing.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
Basis of Presentation	Prior to the Business Change, the Trust was accounted for as an investment company in accordance with the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, Topic 946, Financial Services - Investment Companies , or the Predecessor Basis. Upon the Business Change, we discontinued the application of guidance in ASC Topic 946 and prospectively applied the guidance required under GAAP, applicable to companies that are not investment companies, or the Successor Basis. As a result of these changes, our condensed consolidated financial statements as of and for the three and six months ended June 30, 2021 are presented separately from our financial statements on the Predecessor Basis, as of and for the periods prior to December 31, 2020. The results of operations from January 1, 2021 through January 4, 2021 were not material to the Trust's condensed consolidated financial statements and have not been presented separately, but they are included in our condensed consolidated statement of operations for the six months ended June 30, 2021. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement of results for the interim periods have been included. All intercompany transactions and balances with or among our consolidated subsidiaries have been eliminated. Operating results for interim periods are not necessarily indicative of the results that may be expected for the full year.
Use of Estimates	The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect reported amounts. Actual results could differ from those estimates. Significant estimates in the accompanying condensed consolidated financial statements include the fair value of financial instruments.
Consolidation	Consolidation. These consolidated financial statements include the accounts of us and our subsidiaries, all of which are 100% owned directly by us. All intercompany transactions and balances with or among our consolidated subsidiaries have been eliminated.
Cash, Cash Equivalents and Restricted Cash	Cash, Cash Equivalents and Restricted Cash. We consider highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. Restricted cash primarily consists of deposit proceeds from potential borrowers when originating loans, which may be returned to the applicable borrower upon the closing of the loan, after deducting any transaction costs paid by us for the benefit of such borrower.
Loans Held for Investment	Loans Held for Investment. Generally, our loans are classified as held for investment based upon our intent and ability to hold them until maturity, or if earlier, repayment. Loans that are held for investment are carried at cost, net of unamortized loan origination and accreted exit fees that are required to be recognized in the carrying value of the loans in accordance with GAAP, unless the loans are deemed to be impaired. Loans that we have a plan to sell or liquidate are held at the lower of cost or fair value less cost to sell. We evaluate each of our loans for impairment at least quarterly by assessing a variety of risk factors in relation to each loan and assigning a risk rating to each loan based on those factors. Factors considered in these evaluations include, but are not limited to, property type, geographic and local market dynamics, physical condition, leasing and tenant profile, projected cash flow, risk of loss, current loan to value ratio, or LTV, debt yield, collateral performance, structure, exit plan and sponsorship. Loans are rated “1” (lower risk) through “5” (impaired/loss likely) as defined below: "1" lower risk—Criteria reflects a sponsor having a strong financial condition and low credit risk and our evaluation of management's experience; collateral performance exceeding performance metrics included in the business plan or credit underwriting; and the property demonstrating stabilized occupancy and/or market rates, resulting in strong current cash flow and net operating income and/or having a very low LTV. "2" average risk—Criteria reflects a sponsor having a stable financial condition and our evaluation of management's experience; collateral performance meeting or exceeding substantially all performance metrics included in the business plan or credit underwriting; and the property demonstrating improved occupancy at market rents, resulting in sufficient current cash flow and/or having a low LTV. "3" acceptable risk—Criteria reflects a sponsor having a history of repaying loans at maturity and meeting its credit obligations and our evaluation of management's experience; collateral performance expected to meet performance metrics included in the business plan or credit underwriting; and the property having a moderate LTV. New loans and loans with a limited history will typically be assigned this rating and will be adjusted to other levels from time to time as appropriate. "4" higher risk—Criteria reflects a sponsor having a history of unresolved missed or late payments, maturity extensions and difficulty timely fulfilling its credit obligations and our evaluation of management's experience; collateral performance failing to meet the business plan or credit underwriting; the existence of a risk of default possibly leading to a loss and/or potential weaknesses that deserve management’s attention; and/or the property having a high LTV. "5" impaired/loss likely—Criteria reflects a very high risk of realizing a principal loss or having incurred a principal loss; a sponsor having a history of default payments, trouble fulfilling its credit obligations, deeds in lieu of foreclosures, and/or bankruptcies; collateral performance is significantly worse than performance metrics included in the business plan; loan covenants or performance milestones having been breached or not attained; timely exit via sale or refinancing being uncertain; and/or the property having a very high LTV. See Note 5 for further information regarding our current loan portfolio’s assessment under our internal risk rating policy. Impairment occurs when it is deemed probable that we will not be able to collect all amounts due under a loan according to its contractual terms. Impairment will then be measured based on the present value of the expected future cash flows discounted at the loan's contractual effective rate and the fair value of any available collateral, net of any costs we expect to incur to realize that value. The determination of this estimated fair value involves judgments and assumptions based on objective and subjective factors. Consideration will be given to various factors, such as business plans, property occupancies, tenant profiles, rental rates, operating expenses and borrowers’ repayment plans, among others, and will require significant judgments regarding certain circumstances, such as guarantees, if any. Upon measurement of an impairment, we will record an allowance to reduce the carrying value of the loan accordingly, and record a corresponding charge to net income in our condensed consolidated statements of operations.
Fair Value of Financial Instruments	Fair Value of Financial Instruments. FASB ASC Topic 820-10, Fair Value Measurements and Disclosures , defines fair value, establishes a framework for measuring fair value in accordance with GAAP and expands the required disclosure regarding fair value measurements. ASC Topic 820-10 defines fair value as the price that would be received for a financial instrument in a current sale, which assumes an orderly transaction between market participants on the measurement date. We determine the estimated fair value of financial assets and liabilities using the three-tier fair value hierarchy established by GAAP, which prioritizes the inputs used in measuring fair value. 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 inputs that may be used to measure fair value are as follows: Level I—Inputs include quoted prices in active markets for identical assets or liabilities that we have the ability to access. Level II—Inputs include quoted prices in markets that are less active or inactive or for which all significant inputs are observable, either directly or indirectly.
Loan Deferred Fees	Loan Deferred Fees. Loan origination and exit fees are reflected in loans held for investment, net, in our condensed consolidated balance sheet and include fees charged to borrowers. These fees are amortized and accreted, respectively, into interest income over the life of the related loans held for investment.
Deferred Financing Costs	Deferred Financing Costs. Costs incurred in connection with financings are capitalized and recorded as an offset to the related liability and amortized over the respective financing terms and are recorded in our condensed consolidated statements of operations as a component of interest and related expenses.
Net Income Per Common Share	Net Income Per Common Share. We calculate net income per common share, or EPS, by dividing net income by the weighted average number of common shares outstanding during the period.
Revenue Recognition	Revenue Recognition. Interest income related to our first mortgage whole loans secured by CRE will generally be accrued based on the coupon rates applied to the outstanding principal balance of such loans. Fees, premiums and discounts, if any, will be amortized or accreted into interest income over the remaining lives of the loans using the effective interest method, as adjusted for any prepayments. If a loan's interest or principal payments are not paid when due and there is uncertainty that such payments will be collected, the loan may be categorized as non-accrual and no interest will be recorded unless it is collected. When all overdue payments are collected and, in our judgment, a loan is likely to remain current, it may be re-categorized as accrual.
Securities Transactions and Investment Income	Securities Transactions and Investment Income. Under the Predecessor Basis, we recorded securities transactions on a trade date basis, dividend income on the ex-dividend date and any non-cash dividends at the fair market value of the securities received. We use the accrual method for recording interest income, including accretion of original issue discount, where applicable, and accretion of discount on short term investments and identified cost basis for realized gains and losses from securities transactions. The difference between cost and fair value for investments we continue to hold is reflected as unrealized gain (loss), and any change in that amount from a prior period is reflected in the accompanying consolidated statement of operations.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update, or ASU, No. 2016-13, Financial Instruments - Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments , which requires that entities use a new forward-looking “expected loss” model that generally will result in the earlier recognition of allowance for credit losses. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. As a smaller reporting company, we expect to adopt ASU No. 2016-13 on January 1, 2023. We are currently assessing the potential impact the adoption of ASU No. 2016-13 will have on our condensed consolidated financial statements.

Loans Held for Investment (Tabl

Loans Held for Investment (Tables)	6 Months Ended
	Jun. 30, 2021
Receivables [Abstract]
Schedule of Loans	The table below provides overall statistics for our loan portfolio as of June 30, 2021 and December 31, 2020: As of June 30, 2021 As of December 31, 2020 (Predecessor Basis) Number of loans 9 5 Total loan commitments $ 250,710 $ 111,720 Unfunded loan commitments (1)(2) $ 38,291 $ 18,857 Principal balance (2) $ 212,515 $ 92,863 Unamortized net deferred origination and exit fees $ (1,773) $ (984) Carrying value $ 210,742 $ 91,879 Weighted average coupon rate 4.98 % 5.08 % Weighted average all in yield (3) 5.62 % 5.71 % Weighted average LIBOR floor 0.76 % 0.78 % Weighted average maximum maturity (years) (4) 4.2 4.2 Weighted average risk rating 2.9 3.0 Weighted average LTV (5) 68 % 68 % (1) Unfunded loan commitments are primarily used to finance property and building improvements and leasing capital and are generally funded over the term of the loan. (2) The principal balance at June 30, 2021 includes $96 of capitalized interest that does not reduce the amount of unfunded loan commitments. (3) All in yield represents the yield on a loan, excluding any repurchase debt funding applicable to the loan and including amortization of deferred fees over the initial term of the loan. (4) Maximum maturity assumes all borrower loan extension options have been exercised, which options are subject to the borrower meeting certain conditions. (5) LTV represents the initial loan amount divided by the underwritten in-place value of the underlying collateral at closing. The table below represents our loan activities during the three months ended June 30, 2021: Principal Balance Deferred Fees Carrying Value Balance at March 31, 2021 (Successor Basis) $ 148,652 $ (1,405) $ 147,247 Additional funding 693 — 693 Originations 63,170 (755) 62,415 Net amortization of deferred fees — 387 387 Balance at June 30, 2021 (Successor Basis) $ 212,515 $ (1,773) $ 210,742 The table below represents our loan activities during the six months ended June 30, 2021: Principal Balance Deferred Fees Carrying Value Balance at December 31, 2020 (Predecessor Basis) $ 92,863 $ (984) $ 91,879 Additional funding 967 — 967 Originations 118,685 (1,430) 117,255 Net amortization of deferred fees — 641 641 Balance at June 30, 2021 (Successor Basis) $ 212,515 $ (1,773) $ 210,742 June 30, 2021 December 31, 2020 Property Type Number of Loans Carrying Value Percentage of Value Number of Loans Carrying Value Percentage of Value Office (1) 4 $ 68,395 33 % 2 $ 38,106 41 % Multifamily 1 44,205 21 % — — — % Lab 2 31,199 15 % 2 31,078 34 % Retail 1 17,780 8 % 1 17,029 19 % Industrial (1) 1 49,163 23 % — 5,666 6 % 9 $ 210,742 100 % 5 $ 91,879 100 % (1) Two loan investments secured by mixed use properties consisting of office space and an industrial warehouse in Aurora, IL and Colorado Springs, CO are classified as office for the purpose of counting the number of loans in our portfolio because the majority of the square footage of the properties consists of office space. The carrying value of these loan investments are reflected in office and industrial based on the fair value of the buildings at the time of origination relative to the total fair value of the properties. June 30, 2021 December 31, 2020 Geographic Location Number of Loans Carrying Value Percentage of Value Number of Loans Carrying Value Percentage of Value East 1 $ 33,908 16 % — $ — — % South 2 24,184 11 % 1 13,281 14 % West 3 64,537 31 % 2 34,826 38 % Midwest 3 88,113 42 % 2 43,772 48 % 9 $ 210,742 100 % 5 $ 91,879 100 % June 30, 2021 (Successor Basis) December 31, 2020 (Predecessor Basis) Risk Rating Number of Loans Carrying Value Number of Loans Carrying Value 1 — $ — — $ — 2 1 17,850 — — 3 8 192,892 5 91,879 4 — — — — 5 — — — — 9 $ 210,742 5 $ 91,879

Debt Agreements (Tables)

Debt Agreements (Tables)	6 Months Ended
	Jun. 30, 2021
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	The table below summarizes our debt agreements as of June 30, 2021: Debt Obligation Weighted Average Collateral Maximum Facility Size Principal Balance Carrying Value Coupon Rate Remaining Maturity (1) (years) Principal Balance Fair Value (2) June 30, 2021: Master Repurchase Facility $ 193,055 $ 49,172 $ 48,775 L + 2.05% 2.5 $ 212,515 $ 208,678 (1) The weighted average remaining maturity is determined using the current maturity date of the corresponding loans, assuming no borrower loan extension options have been exercised. Our Master Repurchase Facility matures on February 18, 2024.

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2021
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The table below provides information regarding financial assets and liabilities not carried at fair value on a recurring basis in our condensed consolidated balance sheets: June 30, 2021 (Successor Basis) December 31, 2020 (Predecessor Basis) Carrying Value Fair Value Carrying Value Fair Value Financial assets Loans held for investment $ 210,742 $ 209,034 $ 91,879 $ 91,879 Financial liabilities Master Repurchase Facility $ 48,775 $ 48,238 — —

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2021
Equity [Abstract]
Dividends Declared	For the six months ended June 30, 2021, we declared and paid a distribution to common shareholders as follows: Record Date Payment Date Distribution per Share Total Distribution April 26, 2021 May 20, 2021 $ 0.15 $ 1,530

Organization (Details)

Organization (Details) - USD ($) $ / shares in Units, $ in Thousands	Apr. 26, 2021	Jun. 30, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Common shares, par value (in dollars per share)		$ 0.001	$ 0.001
Merger Agreement
Business Acquisition [Line Items]
Common shares, par value (in dollars per share)	$ 0.001
Exchange ratio of shares issued per acquiree share ( in shares)	0.52
Transaction costs		$ 2,183
Merger Agreement | Tremont Mortgage Trust
Business Acquisition [Line Items]
Common shares, par value (in dollars per share)	$ 0.01

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Percent ownership	100.00%
Debt financing costs	$ 397
Antidilutive securities excluded from computation of earnings per share (in shares)	0	0

Loans Held for Investment - Loa

Loans Held for Investment - Loan Portfolio Statistics (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021USD ($)loan	Dec. 31, 2020USD ($)loan	Mar. 31, 2021USD ($)
Receivables [Abstract]
Number of loans | loan	9	5
Total loan commitments	$ 250,710	$ 111,720
Unfunded loan commitments	38,291	18,857
Principal Balance	212,515	92,863	$ 148,652
Unamortized net deferred origination and exit fees	(1,773)	(984)	$ (1,405)
Carrying value	$ 210,742	$ 91,879
Weighted average coupon rate	4.98%	5.08%
Weighted average all in yield	5.62%	5.71%
Weighted average LIBOR floor	0.76%	0.78%
Weighted average maximum maturity (years)	4 years 2 months 12 days	4 years 2 months 12 days
Weighted average risk rating	2.9	3
Weighted average LTV	0.68	0.68
Capitalized interest	$ 96	$ 96

Loans Held for Investment - L_2

Loans Held for Investment - Loan Activity (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2021
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward]
Principal, beginning balance	$ 148,652	$ 92,863
Deferred fees, beginning balance	(1,405)	(984)
Carrying value, beginning balance	147,247	91,879
Additional funding	693	967
Principal, originations	63,170	118,685
Deferred fees, originations	(755)	(1,430)
Carrying value, originations	62,415	117,255
Net amortization of deferred fees	387	641
Principal, ending balance	212,515	212,515
Deferred fees, ending balance	(1,773)	(1,773)
Carrying value, ending balance	$ 210,742	$ 210,742

Loans Held for Investment - Nar

Loans Held for Investment - Narrative (Details) $ in Thousands	1 Months Ended
	Jul. 31, 2021USD ($)trustee	Jun. 30, 2021USD ($)	Mar. 31, 2021USD ($)	Dec. 31, 2020USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Committed Principal Amount		$ 212,515	$ 148,652	$ 92,863
Weighted average risk rating		2.9		3
Plano, Texas | Office/Industrial Property | First Mortgage Bridge Loans | Subsequent Event
Accounts, Notes, Loans and Financing Receivable [Line Items]
Committed Principal Amount	$ 27,385
Initial term	3 years
Number of extension options | trustee	2
Extension term	1 year
Plano, Texas | Office/Industrial Property | LIBOR | First Mortgage Bridge Loans | Subsequent Event
Accounts, Notes, Loans and Financing Receivable [Line Items]
Basis spread on variable rate	4.75%
Plano, Texas | Office/Industrial Property | Initial Funding | First Mortgage Bridge Loans | Subsequent Event
Accounts, Notes, Loans and Financing Receivable [Line Items]
Committed Principal Amount	$ 24,635
Plano, Texas | Office/Industrial Property | Future Funding Allowance | First Mortgage Bridge Loans | Subsequent Event
Accounts, Notes, Loans and Financing Receivable [Line Items]
Committed Principal Amount	2,750
Portland, Oregon | Apartment Building | First Mortgage Bridge Loans | Subsequent Event
Accounts, Notes, Loans and Financing Receivable [Line Items]
Committed Principal Amount	$ 19,688
Initial term	3 years
Number of extension options | trustee	2
Extension term	1 year
Number of properties | trustee	100
Portland, Oregon | Apartment Building | LIBOR | First Mortgage Bridge Loans | Subsequent Event
Accounts, Notes, Loans and Financing Receivable [Line Items]
Basis spread on variable rate	3.57%

Loans Held for Investment - L_3

Loans Held for Investment - Loan Portfolio (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021USD ($)loan	Dec. 31, 2020USD ($)loan	Mar. 31, 2021USD ($)
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans	9	5
Carrying value | $	$ 210,742	$ 91,879	$ 147,247
Percentage of Value	100.00%	100.00%
East
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans	1	0
Carrying value | $	$ 33,908	$ 0
Percentage of Value	16.00%	0.00%
South
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans	2	1
Carrying value | $	$ 24,184	$ 13,281
Percentage of Value	11.00%	14.00%
West
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans	3	2
Carrying value | $	$ 64,537	$ 34,826
Percentage of Value	31.00%	38.00%
Midwest
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans	3	2
Carrying value | $	$ 88,113	$ 43,772
Percentage of Value	42.00%	48.00%
Office
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans	4	2
Carrying value | $	$ 68,395	$ 38,106
Percentage of Value	33.00%	41.00%
Multifamily
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans	1	0
Carrying value | $	$ 44,205	$ 0
Percentage of Value	21.00%	0.00%
Lab
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans	2	2
Carrying value | $	$ 31,199	$ 31,078
Percentage of Value	15.00%	34.00%
Retail
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans	1	1
Carrying value | $	$ 17,780	$ 17,029
Percentage of Value	8.00%	19.00%
Industrial
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans	1	0
Carrying value | $	$ 49,163	$ 5,666
Percentage of Value	23.00%	6.00%
Mixed Use Properties
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans	2

Loans Held for Investment - L_4

Loans Held for Investment - Loan Risk Ratings (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021USD ($)loan	Dec. 31, 2020USD ($)loan	Mar. 31, 2021USD ($)
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	9	5
Carrying value | $	$ 210,742	$ 91,879	$ 147,247
Risk Rating, 1
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	0	0
Carrying value | $	$ 0	$ 0
Risk Rating, 2
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	1	0
Carrying value | $	$ 17,850	$ 0
Risk Rating, 3
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	8	5
Carrying value | $	$ 192,892	$ 91,879
Risk Rating, 4
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	0	0
Carrying value | $	$ 0	$ 0
Risk Rating, 5
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans | loan	0	0
Carrying value | $	$ 0	$ 0

Debt Agreements - Schedule of D

Debt Agreements - Schedule of Debt (Details) - Mortgages and Related Assets $ in Thousands	6 Months Ended
	Jun. 30, 2021USD ($)
Debt Instrument [Line Items]
Maximum Facility Size	$ 193,055
Principal Balance	49,172
Carrying Value	$ 48,775
Remaining Maturity (1) (years)	2 years 6 months
Collateral, Principal Balance	$ 212,515
Collateral, Fair Value	$ 208,678
LIBOR
Debt Instrument [Line Items]
Coupon Rate	2.05%

Debt Agreements - Narrative (De

Debt Agreements - Narrative (Details) - USD ($) $ in Thousands	Jul. 30, 2021	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Mar. 31, 2021	Feb. 18, 2021	Dec. 31, 2020
Assets Sold under Agreements to Repurchase [Line Items]
Equity		$ 193,055		$ 193,055		$ 193,244		$ 192,894
Outstanding balance		$ 48,775		48,775
Repayment of note payable				$ 49,172
Interest expense			$ 297		$ 851
Subsequent Event
Assets Sold under Agreements to Repurchase [Line Items]
Repayment of note payable	$ 69,172
Mortgages and Related Assets
Assets Sold under Agreements to Repurchase [Line Items]
Debt, weighted average interest rate		2.39%		2.39%
Percentage of loan guaranteed							25.00%
Debt instrument, loan percentage guaranteed in event of certain bad acts							100.00%
UBS AG | Mortgages and Related Assets
Assets Sold under Agreements to Repurchase [Line Items]
Non-refundable upfront fee, percent of tranche							0.50%
Percentage of purchased asset, initial purchase price							75.00%
Minimum percentage of margin to advance							75.00%

Fair Value of Financial Instr_3

Fair Value of Financial Instruments (Details) - Level III - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for investment	$ 210,742	$ 91,879
Master Repurchase Facility	48,775	0
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for investment	209,034	91,879
Master Repurchase Facility	$ 48,238	$ 0

Shareholders' Equity (Details)

Shareholders' Equity (Details) $ / shares in Units, $ in Thousands	Jul. 15, 2021USD ($)$ / shares	May 27, 2021trustee$ / sharesshares	May 20, 2021USD ($)$ / shares	Jun. 30, 2021USD ($)installment	Jun. 30, 2021installment
Class of Stock [Line Items]
Distributions paid (in dollars per share)			$ 0.15
Distributions | $			$ 1,530	$ 1,530
2021 Equity Compensation Plan
Class of Stock [Line Items]
Number of installments | installment				5	5
Vesting percentage					20.00%
Trustee Compensation Arrangements
Class of Stock [Line Items]
Number of trustees | trustee		5
Grants awarded (in shares) | shares		3,000
Grants awarded (in dollars per share)		$ 12.10
Subsequent Event
Class of Stock [Line Items]
Distributions | $	$ 1,533
Distributions declared (in dollars per share)	$ 0.15

Management Agreement with our_2

Management Agreement with our Manager (Details) $ in Thousands	Jan. 05, 2021USD ($)	Jun. 30, 2021USD ($)employee	Mar. 16, 2021USD ($)	Jun. 30, 2020USD ($)	Jun. 30, 2021USD ($)employee	Jun. 30, 2020USD ($)	Jan. 04, 2021
Related Party Transaction [Line Items]
Number of employees | employee		0			0
Administrative			$ 15	$ 24		$ 48
Annual rate, percent of average daily managed assets							0.85%
Advisory	$ 22			547		1,252
Compliance and internal audit				$ 34		$ 68
Base management fees		$ 721			$ 1,436
Reimbursement of shared services expenses		275			601
Principal Owner
Related Party Transaction [Line Items]
Base management fees		721			1,414
Principal Owner | Shared Service Costs
Related Party Transaction [Line Items]
Reimbursement of shared services expenses		$ 312			$ 664

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Other Commitments [Line Items]
Unfunded loan commitments	$ 38,291	$ 18,857
Weighted average maximum maturity	4 years 2 months 12 days	4 years 2 months 12 days
Unfunded Commitments
Other Commitments [Line Items]
Weighted average maximum maturity	2 years 6 months

Legal Proceedings and Claims (D

Legal Proceedings and Claims (Details)	Jul. 30, 2021claim
Subsequent Event
Subsequent Event [Line Items]
Number of lawsuits	4