Seven Hills Realty Trust (SEVN) 10-K 13 Feb 23 2022 FY Annual report Financial data

Cover

Cover - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Feb. 09, 2023	Jun. 30, 2022
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-34383
Entity Registrant Name	Seven Hills Realty 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 stock, $0.001 par value per share
Trading Symbol	SEVN
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	false
Entity Shell Company	false
Entity Public Float			$ 134
Entity Common Stock, Shares Outstanding		14,707,110
Documents Incorporated by Reference	Certain information required by Items 10, 11, 12, 13 and 14 of Part III of this Annual Report on Form 10-K is incorporated by reference to our definitive Proxy Statement for the 2023 Annual Meeting of Shareholders to be filed with the Securities and Exchange Commission within 120 days after the fiscal year ended December 31, 2022.
Entity Central Index Key	0001452477
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY

Audit Information

Audit Information	12 Months Ended
	Dec. 31, 2022
Audit Information [Abstract]
Auditor Firm ID	34
Auditor Name	Deloitte & Touche LLP
Auditor Location	Boston, Massachusetts

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
ASSETS
Cash and cash equivalents	$ 71,057	$ 26,197
Restricted cash	10	98
Loans held for investment, net	669,929	570,780
Prepaid expenses and other assets	5,851	2,918
Total assets	746,847	599,993
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable, accrued liabilities and deposits	1,903	1,561
Secured financing facilities, net	471,521	339,627
Due to related persons	1,844	1,111
Total liabilities	475,268	342,299
Commitments and contingencies
Shareholders' equity:
Common shares of beneficial interest, $0.001 par value per share; 25,000,000 shares authorized; 14,709,165 and 14,597,079 shares issued and outstanding, respectively	15	15
Additional paid in capital	238,505	237,624
Cumulative net income	52,290	24,650
Cumulative distributions	(19,231)	(4,595)
Total shareholders' equity	271,579	257,694
Total liabilities and shareholders' equity	$ 746,847	$ 599,993

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Common shares, par value (in dollars per share)	$ 0.001	$ 0.001
Common shares authorized (in shares)	25,000,000	25,000,000
Common shares issued (in shares)	14,709,165	14,709,165
Common shares outstanding (in shares)	14,597,079	14,597,079

CONSOLIDATED STATEMENT OF OPERA

CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
INCOME FROM INVESTMENTS/INVESTMENT INCOME:
Interest income from investments	$ 45,303	$ 16,775
Purchase discount accretion	10,689	18,932
Less: interest and related expenses	(17,630)	(2,253)
Income from investments, net	38,362	33,454
OTHER EXPENSES/EXPENSES:
Base management fees	4,260	3,221
General and administrative expenses	4,080	3,091
Reimbursement of shared services expenses	2,232	1,565
Other transaction related costs	37	589
Total other expenses	10,609	8,466
Income tax expense	27,753	24,988
Net income	(113)	(338)
Net income	$ 27,640	$ 24,650
Weighted average common shares outstanding- basic (in shares)	14,540	11,304
Weighted average common shares outstanding - diluted (in shares)	14,540	11,304
Net income per common share, basic (in dollars per share)	$ 1.89	$ 2.18
Net income per common share, diluted (in dollars per share)	$ 1.89	$ 2.18

CONSOLIDATED STATEMENT OF SHARE

CONSOLIDATED STATEMENT 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, 2020		10,202,000
Beginning balance at Dec. 31, 2020	$ 192,894	$ 10	$ 192,884	$ 0	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of shares (in shares)		4,285,000
Issuance of shares	44,175	$ 5	44,170
Share grants (in shares)		116,000
Share grants	$ 627		627
Share repurchases (in shares)	(5,530)	(6,000)
Share repurchases	$ (57)		(57)
Net income	24,650			24,650
Distributions	$ (4,595)				(4,595)
Ending balance (in shares) at Dec. 31, 2021	14,597,079	14,597,000
Ending balance at Dec. 31, 2021	$ 257,694	$ 15	237,624	24,650	(4,595)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share grants (in shares)		127,000
Share grants	$ 1,019		1,019
Share repurchases (in shares)	(13,898)	(14,000)
Share repurchases	$ (137)		(137)
Share forfeitures (in shares)		(1,000)
Share forfeitures	(1)		(1)
Net income	27,640			27,640
Distributions	$ (14,636)				(14,636)
Ending balance (in shares) at Dec. 31, 2022	14,597,079	14,709,000
Ending balance at Dec. 31, 2022	$ 271,579	$ 15	$ 238,505	$ 52,290	$ (19,231)

CONSOLIDATED STATEMENT OF CASH

CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 27,640	$ 24,650
Adjustments to reconcile net income to net cash provided by operating activities:
Accretion of purchase discount	(10,689)	(18,932)
Share based compensation	1,018	627
Amortization of deferred financing costs	1,033	211
Amortization of loan origination and exit fees	(3,780)	(1,679)
Changes in operating assets and liabilities:
Prepaid expenses and other assets	(3,546)	(2,039)
Accounts payable, accrued liabilities and deposits	342	(2,329)
Due to related persons	733	283
Net cash provided by operating activities	12,751	792
CASH FLOWS FROM INVESTING ACTIVITIES:
Origination of loans held for investment	(200,938)	(343,471)
Additional funding of loans held for investment	(16,697)	(4,343)
Repayment of loans held for investment	133,568	59,041
Payment of merger related costs	0	(6,160)
Cash assumed in merger	0	11,070
Net cash used in investing activities	(84,067)	(283,863)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from secured financing facilities	284,867	249,804
Repayments under secured financing facilities	(152,121)	(37,897)
Payments of deferred financing costs	(1,885)	(1,453)
Repurchase of common shares	(137)	(57)
Distributions	(14,636)	(4,595)
Net cash provided by financing activities	116,088	205,802
Increase (decrease) in cash, cash equivalents and restricted cash	44,772	(77,269)
Cash, cash equivalents and restricted cash at beginning of period	26,295	103,564
Cash, cash equivalents and restricted cash at end of period	71,067	26,295
SUPPLEMENTAL DISCLOSURES:
Interest paid	15,710	1,718
Income taxes paid	134	2,681
NON-CASH INVESTING ACTIVITIES
Loans held for investment acquired by issuance of common shares	0	162,990
Working capital net liabilities assumed	0	924
NON-CASH FINANCING ACTIVITIES
Assumption of master repurchase facility	0	128,962
Issuance of common shares	0	44,175
Cash and cash equivalents	71,057	26,197
Restricted cash	10	98
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows	$ 71,067	$ 26,295

Organization

Organization	12 Months Ended
	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization Seven Hills Realty Trust is a Maryland real estate investment trust, or REIT, that focuses primarily on originating and investing in first mortgage loans secured by middle market and transitional commercial real estate, or CRE. We were previously organized as a Maryland statutory trust and were 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 SEC, issued an order granting our request to deregister as an investment company under the 1940 Act, or the Deregistration Order. As a result, we changed our SEC registration to a reporting company under the Securities Exchange Act of 1934, as amended. On December 22, 2021, we converted from a Maryland statutory trust to a Maryland REIT.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation. These consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles, or GAAP, which requires us to make estimates and assumptions that affect reported amounts. Actual results could differ from those estimates. Significant estimates in the accompanying consolidated financial statements include the fair value of financial instruments. Consolidation. These consolidated financial statements include the accounts of ours 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 loan investment we make, we evaluate whether we have a controlling financial interest and consolidation of the borrower's financial statements is required under GAAP. 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 received 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. Secured Financing Agreements. Loans financed through our Secured Financing Agreements (as defined in Note 6) are treated as collateralized financing transactions, unless they meet sales treatment under GAAP. Pursuant to GAAP treatment of collateralized financing transactions, loans financed through our Secured Financing Agreements remain on our consolidated balance sheets as assets and cash received from the purchasers is recorded on our consolidated balance sheets as liabilities. Interest paid in accordance with our Secured Financing Agreements is recorded as interest expense. Loans Held for Investment. Generally, our loans are classified as held for investment based upon our intent and ability to hold them until maturity. Loans that are held for investment are carried at cost, net of unamortized loan origination fees, accreted exit fees, unamortized premiums and unaccreted discounts, as applicable, 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” (less risk) through “5” (greater risk) 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 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 consolidated statements of operations. As of December 31, 2022, we have not recorded any allowance 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. We determine the estimated fair value of financial assets and liabilities using the three-tier fair value hierarchy established by GAAP, which prioritizes observable inputs in active markets when measuring fair value. The three levels of inputs that may be used to measure fair value in order of priority 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 fees charged to our borrowers and unamortized or unaccreted balances are reflected as a reduction in loans held for investment, net, in our consolidated balance sheets. These fees are recognized in 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 a reduction to the related liability in our consolidated balance sheets. Deferred financing costs are amortized over the term of the respective financing agreement and are recorded in our consolidated statements of operations as a component of interest and related expenses. Net Income Per Common Share. We calculate net income per common share - basic using the two class method. We calculate net income per common share - diluted using the more dilutive of the two class or treasury stock method. Revenue Recognition. Interest income related to our first mortgage 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 until 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. We did not have any non-accrual loans as of December 31, 2022. 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.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board, or 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 replaces the “incurred loss” model for recognizing credit losses with a forward-looking “expected loss” model that generally will result in the earlier recognition of credit losses. The measurement of current expected credit losses, or CECL, is based upon historical experience, current conditions, and reasonable and supportable forecasts incorporating forward-looking information that affect the collectability of the reported amount. CECL is applicable to financial assets measured at amortized cost and off-balance sheet credit exposures, such as unfunded loan commitments. The reserve required under ASU No. 2016-13 is a valuation account that is deducted from the related loans’ amortized cost basis on our consolidated balance sheets and will reduce our total stockholders’ equity. ASU No. 2016-13 requires a cumulative-effect adjustment to equity as of the beginning of the reporting period of adoption. However, future changes to the reserve will be recognized in net income on our consolidated statements of operations. As a smaller reporting company, ASU No. 2016-13 is effective on January 1, 2023. The implementation process included selection of a credit loss model, changes to our internal reporting processes, changes to our internal controls and documentation of related policies and procedures. Given the lack of historical loss data related to our loan portfolio, we elected to estimate our expected losses using an analytical model that considers the likelihood of default and loss given default for each individual loan. This analytical model incorporates data from a third party database with historical loan loss information for commercial mortgage-backed securities and CRE loans since 1998. Significant inputs to the model include certain loan specific data, such as LTV, property type, geographic location, occupancy, debt service coverage ratio and/or net operating income and a macroeconomic forecast. We may use other acceptable alternative approaches in the future depending on, among other factors, the type of loan, underlying collateral and availability of relevant historical market loan loss data. Based on our loan portfolio, including unfunded loan commitments, at December 31, 2022, the current economic environment and expectations for future conditions, upon adoption of ASU No. 2016-13, we expect to record a cumulative-effect adjustment to reduce our cumulative net income within a range of $6,000 to $8,000, or $0.41 to $0.54 per common share. In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures , which eliminated the guidance for and recognitions of troubled debt restructurings for all entities that have adopted ASU No. 2016-13. Instead, an entity must apply the loan refinancing and restructure guidance in Accounting Standards Codification, or ASC, Topic 310, Receivables (Topic 310), to determine whether a modification results in a new loan or continuation of an existing loan. If a borrower is experiencing financial difficulty, enhanced disclosures are required. ASU No. 2022-02 also amended the guidance on vintage disclosures to require disclosure of current period gross write-offs by year of origination. The adoption of ASU No. 2022-02 prospectively on January 1, 2023, concurrently with the adoption of ASU No. 2016-13 did not have a material impact on our condensed consolidated financial statements.

Merger with Tremont Mortgage Tr

Merger with Tremont Mortgage Trust	12 Months Ended
	Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]
Merger with Tremont Mortgage Trust	Merger with Tremont Mortgage Trust On September 30, 2021, we completed our merger with Tremont Mortgage Trust, or TRMT, at which time TRMT merged with and into us, with us continuing as the surviving entity, or the Merger. As a condition of the Merger, each one issued and outstanding common share of beneficial interest, $0.01 par value per share, of TRMT was automatically converted into the right to receive 0.516 of our common shares of beneficial interest, $0.001 par value per common share, or our common shares. The purchase price, based on the closing price of our common shares on September 30, 2021 of $10.31 per share, was $169,150, including the assumption of $128,962 outstanding under TRMT’s master repurchase facility with Citibank, N.A., or Citibank, or the Citibank Master Repurchase Facility, closing costs of $6,160 and assumed working capital of $10,146. The table below summarizes the consideration transferred and liabilities assumed as a result of the Merger: TRMT Common Shares outstanding 8,303,629 Multiplied by the exchange ratio 0.516 4,284,673 TRMT fractional shares adjustment (73) SEVN common shares issued 4,284,600 Closing price of SEVN common shares on September 30, 2021 $ 10.31 Value of consideration transferred $ 44,174 Assumed working capital (10,146) Assumed Citibank Master Repurchase Facility, principal balance 128,962 Merger related costs 6,160 Consideration transferred and liabilities assumed $ 169,150 After consideration of applicable factors pursuant to ASC Topic 805, Business Combinations , including the application of a screen test to evaluate if substantially all the fair value of TRMT as the acquired entity is concentrated in a single identifiable asset or group of similar identifiable assets, we have concluded that the Merger qualifies as an asset acquisition under GAAP. Accordingly, SEVN accounted for the Merger as an asset acquisition, with Merger related costs capitalized as a component of the cost of the assets acquired and SEVN treated as the acquirer of TRMT. The assets acquired and liabilities assumed were recorded at their relative fair values and added to our consolidated balance sheet as of September 30, 2021. The fair value of the loans acquired in the Merger exceeded the purchase price of the loans. In accordance with GAAP, a purchase discount of $36,443 was recorded for the difference between the fair value and purchase price of the loans acquired. The purchase discount was allocated to each acquired TRMT loan based on their relative fair value and has been and is being accreted into income over the remaining term of the respective loan. For the years ended December 31, 2022 and 2021, we recorded purchase discount accretion of $10,689 and $18,932, respectively. The table below summarizes the purchase price allocation for the Merger: Cash and cash equivalents $ 11,070 Loans held for investment, net 169,150 Accrued interest receivable 603 Prepaid expenses and other assets 31 Total assets 180,854 Accounts payable and other liabilities (901) Citibank Master Repurchase Facility (128,962) Due to related persons (657) Net assets acquired 50,334 Assumed working capital (10,146) Assumed Citibank Master Repurchase Facility, principal balance 128,962 Consideration transferred and liabilities assumed $ 169,150

Loans Held for Investment

Loans Held for Investment	12 Months Ended
	Dec. 31, 2022
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 loan portfolio using cash on hand and advancements under our Secured Financing Facilities, as defined in Note 6, and we acquired TRMT's loan portfolio in the Merger with our common shares. See Note 4 for further information regarding the Merger and Note 6 for further information regarding our Secured Financing Agreements. The table below provides overall statistics for our loan portfolio as of December 31, 2022 and 2021: As of December 31, 2022 2021 Number of loans 27 26 Total loan commitments $ 727,562 $ 648,266 Unfunded loan commitments (1) $ 49,007 $ 57,772 Principal balance (2) $ 678,555 $ 590,590 Carrying value $ 669,929 $ 570,780 Weighted average coupon rate 8.07 % 4.54 % Weighted average all in yield (2) 8.57 % 5.08 % Weighted average floor 0.62 % 0.68 % Weighted average maximum maturity (years) (3) 3.3 3.8 Weighted average risk rating 2.9 2.9 (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) All in yield represents the yield on a loan, including amortization of deferred fees over the initial term of the loan and excluding any purchase discount accretion. (3) Maximum maturity assumes all borrower loan extension options have been exercised, which options are subject to the borrower meeting certain conditions. The table below represents our loan activities during 2021 and 2022: Principal Balance Deferred Fees and Other Items Carrying Value Balance at December 31, 2020 $ 92,863 $ (984) $ 91,879 Additional funding 4,710 — 4,710 Originations 347,366 (3,895) 343,471 Repayments (59,041) (156) (59,197) Net amortization of deferred fees — 1,835 1,835 Loans acquired in Merger (1) 204,692 901 205,593 Purchase discount on loans acquired in Merger — (36,443) (36,443) Purchase discount accretion (2) — 18,932 18,932 Balance at December 31, 2021 590,590 (19,810) 570,780 Additional funding 17,310 — 17,310 Originations 203,244 (2,306) 200,938 Repayments (132,589) (979) (133,568) Net amortization of deferred fees — 3,780 3,780 Purchase discount accretion — 10,689 10,689 Balance at December 31, 2022 $ 678,555 $ (8,626) $ 669,929 (1) Deferred fees and other items for loans acquired in Merger represent exit fees contractually due upon repayment of loans acquired in the Merger. (2) Purchase discount accretion for the year ended December 31, 2021 reflects the impact of a waived exit fee of $120 due from a borrower of a loan acquired in the Merger. The tables below detail the property type and geographic location of the properties securing the loans in our portfolio as of December 31, 2022 and 2021: As of December 31, 2022 2021 Property Type Number of Loans Carrying Value Percentage of Value Number of Loans Carrying Value Percentage of Value Office (1) 11 $ 252,796 38 % 13 $ 269,865 47 % Multifamily 8 197,229 29 % 5 106,002 19 % Industrial (1) 4 110,656 17 % 3 92,791 16 % Retail 4 109,248 16 % 4 88,724 16 % Lab — — — % 1 13,398 2 % 27 $ 669,929 100 % 26 $ 570,780 100 % (1) As of December 31, 2021, two loan investments secured by mixed use properties consisting of office space and an industrial warehouse in Aurora, IL and Colorado Springs, CO were 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 consisted of office space. The carrying value of these loan investments were reflected in office and industrial based on the fair value of the buildings at the time of origination relative to the total fair values of the properties. During the year ended December 31, 2022, our loan investment in Colorado Springs, CO was repaid. As of December 31, 2022 2021 Geographic Location Number of Loans Carrying Value Percentage of Value Number of Loans Carrying Value Percentage of Value Midwest 9 $ 251,208 37 % 8 $ 216,700 38 % South 6 166,616 25 % 7 153,495 27 % West 8 146,837 22 % 8 145,453 25 % East 4 105,268 16 % 3 55,132 10 % 27 $ 669,929 100 % 26 $ 570,780 100 % Loan Credit Quality 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 table below allocates the carrying value of our loan portfolio as of December 31, 2022 and 2021 based on our internal risk rating policy: As of December 31, 2022 2021 Risk Rating Number of Loans Carrying Value Number of Loans Carrying Value 1 1 $ 9,708 — $ — 2 6 134,642 4 94,743 3 17 434,116 21 463,600 4 3 91,463 1 12,437 5 — — — — 27 $ 669,929 26 $ 570,780 The weighted average risk rating of our loans by carrying value was 2.9 as of December 31, 2022 and 2021. Certain of our borrowers’ business operations or tenants, particularly at certain office and retail properties, were negatively impacted by the COVID-19 pandemic and continue to be impacted by market conditions that arose or intensified during or in response to the pandemic. Current inflationary pressures, rising or sustained high interest rates, supply chain issues or a prolonged economic slowdown or recession could amplify those negative impacts. Therefore, certain of our borrowers’ business plans will likely take longer to execute than initially expected, and as a result, certain of our borrowers may be unable to pay their debt service obligations owed and due to us as currently scheduled or at all. As of December 31, 2022, we had three loans representing approximately 14% of the carrying value of our loan portfolio with a loan risk rating of “4” or “higher risk". See Note 2 for further information regarding our loan risk ratings. We may enter into loan modifications that include among other changes, extensions of maturity dates, repurposing or required replenishment of reserves, increases or decreases in loan commitments and required pay downs of principal amounts outstanding. Modifications that represent concessions to a borrower that is experiencing financial difficulties are classified as troubled debt restructurings and considered impaired. In February 2022, we amended the agreement governing our loan secured by an office property located in Yardley, PA. As part of this amendment, the loan commitment was increased by $1,600, or the Additional Advance, and is available to be used to finance debt service costs and operating costs of the borrower. Additionally, the initial maturity date was extended by one year to December 19, 2023. For purposes of calculating interest due to us for this loan, the Additional Advance is deemed to be outstanding as of the date of the amendment, regardless of whether such amounts have been advanced, at the London Interbank Offered Rate, or LIBOR, or a replacement base rate determined by us if LIBOR is no longer available, plus 12.0%. As of December 31, 2022, this loan had a risk rating of “4” and an outstanding principal balance of $15,583. The modification of this loan resulting from the amendment was determined not to be a troubled debt restructuring. However, we accounted for this modification as an extinguishment in accordance with ASC Topic 310, Receivables , because the changes to the terms were determined to be more than minor. As such, we recognized the related unaccreted purchase discount of $1,748 as interest income from investments in our condensed consolidated statements of income at the time of the modification. The borrower’s interest rate cap on the loan expired in December 2022. We have agreed to forbear enforcement of the event of default per the terms of the loan agreement related to the termination of an interest rate cap without replacement, subject to certain terms and conditions. As of February 9, 2023, we believe the borrower was in compliance with other terms of the loan agreement. There were no other material modifications to our loan portfolio during the year ended December 31, 2022. We did not have any impaired loans or nonaccrual loans as of December 31, 2022 or 2021. As of December 31, 2022 and February 9, 2023, our borrowers had paid their debt service obligations owed and due to us and none of the loans included in our investment portfolio were in default, except for the interest rate cap forbearance described above.

Secured Financing Agreements

Secured Financing Agreements	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
Secured Financing Agreements	Secured Financing Agreements UBS Master Repurchase Facility On February 18, 2021, one of our wholly owned subsidiaries entered into our master repurchase agreement with UBS AG, or UBS, or our UBS Master Repurchase Agreement, for a facility, or our UBS Master Repurchase Facility, pursuant to which we may sell to UBS, and later repurchase, commercial mortgage loans, which are referred to as purchased assets. The maximum amount of available advancements under the UBS Master Repurchase Agreement is $192,000, and the expiration date of the UBS Master Repurchase Agreement is February 18, 2024, unless extended or earlier terminated in accordance with the terms of the UBS Master Repurchase Agreement. Pursuant to the UBS 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 UBS Master Repurchase Agreement). The amended and restated UBS Master Repurchase Agreement, which was effective March 9, 2022, made certain changes to the agreement and related fee letter, including replacing LIBOR with the Secured Overnight Financing Rate, or SOFR, for interest rate calculations on advancements under the UBS Master Repurchase Facility and modifying certain pricing terms. Under our UBS 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 was equal to one month SOFR plus a 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 UBS Master Repurchase Agreement to make advancements at margins higher than 75%. On May 4, 2022, we amended and restated our UBS Master Repurchase Agreement. In connection with our UBS Master Repurchase Agreement, we entered into a guaranty, or the UBS 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 as any costs and expenses of UBS related to our UBS Master Repurchase Agreement. The UBS Guaranty also contains financial covenants, which require us to maintain a minimum tangible net worth, a minimum liquidity and to satisfy a total indebtedness to stockholders' equity ratio. Our UBS 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 UBS 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. In addition, our UBS Master Repurchase Agreement provides for acceleration of the date of repurchase of the purchased assets by us and UBS’s liquidation of the purchased assets upon the occurrence and continuation of certain events of default, including a change of control of us, which includes Tremont Realty Capital LLC, or Tremont, ceasing to act as our sole manager or to be a wholly owned subsidiary of The RMR Group LLC, or RMR. Citibank Master Repurchase Facility As discussed in Note 4, as a result of the Merger, we assumed the Citibank Master Repurchase Facility. On September 30, 2021, as a result of the Merger, we became party to TRMT's master repurchase facility and entered into a guaranty, or the Citibank Guaranty, in favor of Citibank, pursuant to which, among other things, we replaced TRMT as guarantor of certain obligations under the master repurchase agreement, as amended, with Citibank, or the Citibank Master Repurchase Agreement and amended the Citibank Master Repurchase Agreement and the related fee agreement. On March 15, 2022, we amended and restated our Citibank Master Repurchase Agreement to make certain changes to the agreement and related fee letter, including increasing the maximum amount of available advancements under our Citibank Master Repurchase Facility to $215,000, replacing LIBOR with SOFR for interest rate calculations on advancements under the Citibank Master Repurchase Facility, modifying certain pricing terms and extending the stated maturity date to March 15, 2025, subject to earlier termination as provided for in the Citibank Master Repurchase Agreement. Pursuant to the Citibank Master Repurchase Agreement, we may sell to Citibank, and later repurchase, floating rate mortgage loans and other related assets. Under our Citibank Master Repurchase Agreement, the initial purchase price paid by Citibank for each purchased asset is up to 75% of the lesser of the market value of the purchased asset or the unpaid principal balance of such purchased asset, subject to Citibank’s approval. Upon the repurchase of a purchased asset, we are required to pay Citibank the outstanding purchase price of the purchased asset, accrued interest and all accrued and unpaid expenses of Citibank relating to such purchased asset. The price differential (or interest rate) relating to a purchased asset was equal to LIBOR plus a premium of 200 to 250 basis points, determined by the yield of the purchased asset and the property type of the purchased asset’s real estate collateral. Citibank has the discretion under our Citibank Master Repurchase Agreement to make advancements at margins higher than 75% and at premiums of less than 200 basis points. The Citibank Guaranty, which requires us to guarantee 25% of our subsidiary's prompt and complete payment of the purchase price, purchase price differential and any costs and expenses of Citibank related to our Citibank Master Repurchase Agreement. The Citibank Guaranty also contains financial covenants, which require us to maintain a minimum tangible net worth, a minimum liquidity, a minimum interest coverage ratio and to satisfy a total indebtedness to tangible net worth ratio. These maintenance provisions provide Citibank with the right, in certain circumstances related to a credit event, as defined in our Citibank Master Repurchase Agreement, to re-determine the value of purchased assets. Where a decline in the value of such purchased assets has resulted in a margin deficit, Citibank may require us to eliminate any margin deficit through a combination of purchased asset repurchases and cash transfers to Citibank, subject to Citibank's approval. Our Citibank Master Repurchase Agreement also provides for acceleration of the date of repurchase of the purchased assets by us and Citibank’s liquidation of the purchased assets upon the occurrence and continuation of certain events of default, including a change of control of us, which includes Tremont ceasing to act as our sole manager or to be a wholly owned subsidiary of RMR. BMO Facility On November 9, 2021, one of our wholly owned subsidiaries entered into our facility loan program agreement and the security agreement with BMO Harris Bank N.A., or BMO, or our BMO Loan Program Agreement, with BMO as administrative agent for the lenders. Amounts advanced under an uncommitted credit facility, originally up to the maximum principal amount of $100,000, or the BMO Facility, may be used to fund new mortgage loan originations and/or fund future funding obligations under existing and new mortgage loans pursuant to separate agreements, or the BMO Facility Loan Agreements. BMO Facility Loan Agreements issued under the BMO Facility are coterminous with the pledged mortgage loan investments, are not subject to margin calls and allow for up to an 80% advance rate, subject to certain loan to cost and LTV limits. Interest on advancements under the BMO Facility are calculated at SOFR plus a premium. BMO Facility Loan Agreements issued under our BMO Facility are secured by a security interest and collateral assignment of the underlying loans to our borrowers which are secured by real property owned by such borrowers. On April 25, 2022, we amended our BMO Loan Program Agreement to increase the maximum principal amount available under our BMO Facility, from $100,000 to $150,000. In connection with our BMO Loan Program Agreement, we guaranteed certain of the obligations under our BMO Loan Program Agreement and the BMO Facility Loan Agreements pursuant to a limited guaranty from us to and for the benefit of the administrative agent for itself and such other lenders. Specifically, the BMO Guaranty requires us to guarantee 25% of the then current outstanding principal balance of the facility loans and 100% of losses or the entire indebtedness in the event of certain bad acts as well as any costs and expenses of the administrative agent or lenders related to our BMO Loan Program Agreement. In addition, the BMO Guaranty contains financial covenants that require us to maintain a minimum tangible net worth and a minimum liquidity and to satisfy a total indebtedness to stockholders’ equity ratio. Our BMO Loan Program Agreement provides for acceleration of all payment obligations due under the BMO Facility Loan Agreements upon the occurrence and continuation of certain events of default, including a change of control of us, which includes Tremont ceasing to act as our sole manager or to be a wholly owned subsidiary of R MR. Wells Fargo Master Repurchase Facility On March 11, 2022, one of our wholly owned subsidiaries entered into a master repurchase and securities agreement with Wells Fargo, National Association, or Wells Fargo, or the Wells Fargo Master Repurchase Agreement, for the Wells Fargo Master Repurchase Facility. The Wells Fargo Master Repurchase Facility provides up to $125,000 in advances, with an option to increase the maximum facility amount to $250,000, subject to certain terms and conditions. We may sell to Wells Fargo, and later repurchase, commercial mortgage loans, which are referred to as purchased assets. The expiration date of the Wells Fargo Master Repurchase Agreement is March 11, 2025, unless extended or earlier terminated in accordance with the terms of the Wells Fargo Master Repurchase Agreement. Under the Wells Fargo Master Repurchase Facility, the initial purchase price paid by Wells Fargo for each purchased asset is up to 75% or 80%, depending on the property type of the purchased asset’s real estate collateral, of the lesser of the market value of the purchased asset or the unpaid principal balance of such purchased asset, and subject to Wells Fargo’s approval. Upon the repurchase of a purchased asset, we are required to pay Wells Fargo the outstanding purchase price of the purchased asset, accrued interest and all accrued and unpaid expenses of Wells Fargo relating to such purchased asset. Interest on advancements under the Wells Fargo Master Repurchase Facility is calculated at SOFR, plus a premium. In connection with our Wells Fargo Master Repurchase Agreement, we entered into a guaranty, or the Wells Fargo 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 as any costs and expenses of Wells Fargo related to our Wells Fargo Master Repurchase Agreement. The Wells Fargo Guaranty also contains financial covenants, which require us to maintain a minimum tangible net worth, a minimum liquidity and a minimum interest coverage ratio and to satisfy a total indebtedness to stockholders’ equity ratio. Our Wells Fargo Master Repurchase Facility also contains margin maintenance provisions that provide Wells Fargo with the right, in certain circumstances related to a credit event, as defined in the Wells Fargo 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, Wells Fargo may require us to eliminate any margin deficit through a combination of purchased asset repurchases and cash transfers to Wells Fargo subject to Wells Fargo’s approval. In addition, our Wells Fargo Master Repurchase Agreement provides for acceleration of the date of repurchase of the purchased assets by us and Wells Fargo’s liquidation of the purchased assets upon the occurrence and continuation of certain events of default, including a change of control of us, which includes Tremont ceasing to act as our sole manager or to be a wholly owned subsidiary of RMR. We refer to the UBS Master Repurchase Facility, Citibank Master Repurchase Facility, BMO Facility and Wells Fargo Master Repurchase Facility, collectively, as our Secured Financing Facilities. We refer to the UBS Master Repurchase Agreement, Citibank Master Repurchase Agreement and Wells Fargo Master Repurchase Agreement, collectively, as our Master Repurchase Agreements, and to our Master Repurchase Agreements, the BMO Loan Program Agreement and the BMO Facility Loan Agreements, collectively, as our Secured Financing Agreements. As of December 31, 2022, we were in compliance with the covenants and other terms of the agreements that govern our Secured Financing Facilities. As of December 31, 2022 and February 9, 2023, we had aggregate outstanding principal balances under our Secured Financing Facilities of $473,615 and $462,286, respectively. The table below summarizes our Secured Financing Facilities as of December 31, 2022 and 2021: Debt Obligation Weighted Average Collateral Maximum Facility Size Principal Balance Carrying Value Coupon Rate (1) Remaining Maturity (years) (2) Principal Balance December 31, 2022: Citibank Master Repurchase Facility $ 215,000 $ 150,647 $ 150,360 6.34 % 1.1 $ 205,234 UBS Master Repurchase Facility 192,000 144,437 143,887 6.48 % 1.1 198,254 BMO Facility 150,000 111,105 110,473 6.22 % 2.2 148,476 Wells Fargo Master Repurchase Facility 125,000 67,426 66,801 6.23 % 2.1 89,008 Total/weighted average $ 682,000 $ 473,615 $ 471,521 6.34 % 1.5 $ 640,972 December 31, 2021: Citibank Master Repurchase Facility $ 213,482 $ 161,825 $ 161,724 2.03 % 0.7 $ 222,129 UBS Master Repurchase Facility 192,000 167,928 167,024 2.09 % 2.0 225,868 BMO Facility 100,000 11,116 10,879 2.01 % 2.7 14,821 Total/weighted average $ 505,482 $ 340,869 $ 339,627 2.06 % 1.4 $ 462,818 (1) The weighted average coupon rate is determined using LIBOR or SOFR plus a spread ranging from 1.80% to 2.51%, as applicable, for the respective borrowings under our Secured Financing Facilities as of the applicable date. (2) The weighted average remaining maturity is determined using the current maturity date of our corresponding loan investments, assuming no borrower loan extension options have been exercised. As of December 31, 2022, our Citibank Master Repurchase Facility, UBS Master Repurchase Facility and Wells Fargo Master Repurchase Facility mature on March 15, 2025, February 18, 2024 and March 11, 2025, respectively. Our BMO Facility matures at various dates based on the respective underlying loans held for investment. As of December 31, 2022, our outstanding borrowings under our Secured Financing Facilities had the following remaining maturities: Maturity Year Principal Payments 2023 $ 99,112 2024 264,246 2025 110,257 2026 and thereafter — $ 473,615

Fair Value of Financial Instrum

Fair Value of Financial Instruments	12 Months Ended
	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments 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. We estimate the fair values of our loans held for investment and outstanding principal balances under our Secured Financing Facilities by using Level III inputs, including discounted cash flow analyses and currently prevailing market terms as of the measurement date. The table below provides carrying values and fair values of our financial assets and liabilities not carried at fair value in our consolidated balance sheets: As of December 31, 2022 2021 Carrying Value Fair Value Carrying Value Fair Value Financial assets Loans held for investment $ 669,929 $ 679,911 $ 570,780 $ 597,669 Financial liabilities Secured Financing Facilities $ 471,521 $ 471,362 $ 339,627 $ 341,679

Shareholders' Equity

Shareholders' Equity	12 Months Ended
	Dec. 31, 2022
Equity [Abstract]
Shareholders' Equity	Shareholders' Equity Common Share Awards We have common shares available for issuance under the terms of our Amended and Restated 2021 Equity Compensation Plan, or the 2021 Plan. During the years ended December 31, 2022 and 2021, we awarded to our officers and certain other employees of Tremont and of RMR annual share awards of 85,000 and 83,000 of our common shares, respectively, valued at $859 and $864, in aggregate, respectively. In accordance with our Trustee compensation arrangements, during the years ended December 31, 2022 and 2021, we awarded each of our then Trustees 6,000 of our common shares valued at $448 and $369, respectively, as part of their annual compensation. The values of the share awards are based upon the closing price of our common shares on Nasdaq on the dates of awards. The common shares that we award to our Trustees as trustee compensation vest immediately. The common shares we award to our officers and certain other employees of Tremont and of RMR vest in five equal annual installments beginning on the date of award. We recognize any share forfeitures as they occur. We include the value of awarded shares in general and administrative expenses ratably over the vesting period. A summary of shares granted, forfeited, vested and unvested under the terms of the 2021 Plan for the years ended December 31, 2022 and 2021 is as follows: 2022 2021 Number of Weighted Average Grant Number of Weighted Average Grant Unvested shares, beginning of year 91,584 $ 10.39 — $ — Shares granted 127,000 $ 10.29 116,000 $ 10.63 Shares forfeited (1,016) $ 10.39 — $ — Shares vested (87,888) $ 10.45 (50,786) $ 10.89 Shares granted at the effective date of the Merger — $ — 26,370 $ 10.31 Unvested shares, end of year 129,680 $ 10.24 91,584 $ 10.39 The 129,680 unvested shares as of December 31, 2022 are scheduled to vest as follows: 44,089 shares in 2023, 36,291 shares in 2024, 32,300 shares in 2025 and 17,000 shares in 2026. As of December 31, 2022, the estimated future compensation expense for the unvested shares was $1,180. The weighted average period over which the compensation expense will be recorded is approximately 23 months. During the years ended December 31, 2022 and 2021, we recorded $1,018 and $627, respectively, of compensation expense related to the 2021 Plan. At December 31, 2022, 251,074 of our common shares remained available for issuance under the 2021 Plan. Common Share Purchases During the years ended December 31, 2022 and 2021, we purchased 13,898 and 5,530 of our common shares, respectively, from certain of our current and former officers and employees of Tremont and/or RMR in satisfaction of tax withholding and payment obligations in connection with the vesting of awards of our common shares, valued at the closing price of our common shares on Nasdaq on the applicable purchase date. The aggregate value of common shares purchased during the years ended December 31, 2022 and 2021 was $137 and $57, respectively. Distributions During the years ended December 31, 2022 and 2021, we paid distributions to common shareholders as follows: Characterization of Distributions Year Annual Per Share Distribution Total Distribution Return of Capital Ordinary Income Qualified Dividend 2022 $ 1.00 $ 14,636 — % 100 % — % 2021 $ 0.45 $ 4,595 21 % 79 % — % On January 12, 2023, we declared a quarterly distribution of $0.35 per common share, or $5,148, to shareholders of record on January 23, 2023. We expect to pay this distribution to our shareholders on or about February 16, 2023 using cash on hand.

Management Agreement with Tremo

Management Agreement with Tremont	12 Months Ended
	Dec. 31, 2022
Related Party Transactions [Abstract]
Management Agreement with Tremont	Management Agreement with Tremont We have no employees. Effective January 5, 2021, upon receipt of the Deregistration Order, we entered into a management agreement with Tremont. T he personnel and various services we require to operate our business are provided to us by Tremont, pursuant to the management agreement, which provides for the day to day management of our operations by Tremont, subject to the oversight and direction of our Board of Trustees. Prior to the Merger, Tremont also provided management services to TRMT. In connection with the Merger, TRMT terminated its management agreement with Tremont, and Tremont waived its right to receive payment of the termination fees that would have otherwise resulted due to the Merger. In consideration of this waiver, we agreed that, effective upon consummation of the Merger and the termination of TRMT’s management agreement with Tremont, certain of the expenses Tremont had paid pursuant to TRMT’s management agreement will be included in the “Termination Fee” under and as defined in our existing management agreement with Tremont. Our management agreement with Tremont provides for an annual base management fee and an incentive fee, payable in cash, among other terms: • Base Management Fee . We are required to pay Tremont the annual base management fee equal to 1.5% of our “Equity”, payable in cash quarterly (0.375% per quarter) in arrears. Under our management agreement, “Equity” means (a) the sum of (i) our net asset value as of January 5, 2021, plus (ii) the net proceeds received by us from any future sale or issuance of shares of beneficial interest, plus (iii) our cumulative “Distributable Earnings,” as defined below, for the period commencing on January 5, 2021 to the end of the applicable most recent completed calendar quarter, less (b) (i) any distributions previously paid to holders of our common shares, (ii) any incentive fee previously paid to Tremont and (iii) any amount that we may have paid to repurchase our common shares. All items in the foregoing sentence (other than clause (a)(iii)) are calculated on a daily weighted average basis. As a result of the Merger, as of September 30, 2021, the net book value of TRMT was included as “Equity” under the management agreement. • Incentive Fee. We are required to pay Tremont quarterly an incentive fee in arrears in cash equal to the difference between: • The product of (i) 20% and (ii) the difference between (A) our Distributable Earnings for the most recent 12 month period (or such lesser number of completed calendar quarters, if applicable), including the calendar quarter (or part thereof) for which the calculation of the incentive fee is being made, and (B) the product of (1) our Equity in the most recent 12 month period (or such lesser number of completed calendar quarters, if applicable), including the calendar quarter (or part thereof) for which the calculation of the incentive fee is being made, and (2) 7% per year, and • The sum of any incentive fees paid to Tremont with respect to the first three calendar quarters of the most recent 12 month period (or such lesser number of completed calendar quarters, if applicable). No incentive fee shall be payable with respect to any calendar quarter unless Distributable Earnings for the 12 most recently completed calendar quarters (or such lesser number of completed calendar quarters, if applicable) in the aggregate is greater than zero. Pursuant to the terms of our management agreement, no management incentive fees were payable until after the quarter ended March 31, 2021 and, thereafter, any management incentive fees are subject to Tremont earning those fees in accordance with the management agreement. For purposes of the calculation of base management fees and incentive fees payable to Tremont under our management agreement, “Distributable Earnings” is defined as net income (or loss) attributable to our common shareholders, computed in accordance with GAAP, including realized losses not otherwise included in GAAP net income (loss), and excluding: (a) the incentive fees earned by Tremont; (b) depreciation and amortization (if any); (c) non-cash equity compensation expense (if any); (d) unrealized gains, losses and other similar non-cash items that are included in net income for the period of the calculation (regardless of whether such items are included in or deducted from net income or in other comprehensive income or loss under GAAP); and (e) one-time events pursuant to changes in GAAP and certain material non-cash income or expense items, in each case after discussion between Tremont and our Independent Trustees and approved by a majority of our Independent Trustees. Distributable Earnings are reduced for realized losses on loan investments when amounts are deemed uncollectable. Pursuant to the terms of our management agreement, the exclusion of depreciation and amortization from the calculation of Distributable Earnings shall only apply with respect to real property we own. Our shares of beneficial interest that are entitled to a specific periodic distribution or have other debt characteristics will not be included in “Equity” for the purpose of calculating incentive fees payable to Tremont. Instead, the aggregate distribution amount that accrues to such shares during the calendar quarter of such calculation will be subtracted from Distributable Earnings for purposes of calculating incentive fees, unless such distribution is otherwise already excluded from Distributable Earnings. Equity and Distributable Earnings as defined in our management agreement are non-GAAP financial measures and may be different from our shareholders’ equity and our net income calculated according to GAAP. We recognized base management fees of $4,260 and $3,221 for the years ended December 31, 2022 and 2021. No incentive fee was earned for the year ended December 31, 2022 or 2021. Term. The initial term of our management agreement ends on December 31, 2023, and the agreement will automatically renew for successive one year terms beginning January 1, 2024, and each January 1 thereafter, unless it is sooner terminated as detailed below. Termination Rights. We have the right to terminate our management agreement with Tremont upon written notice delivered no later than 180 days prior to a renewal date by the affirmative vote of at least two-thirds (2/3) of our Independent Trustees based upon a determination that: (a) Tremont’s performance is unsatisfactory and materially detrimental to us or (b) the base management fee and incentive fee, taken as a whole, payable to Tremont under our management agreement are not fair to us (provided that, in the instance of (b), Tremont will be afforded the opportunity to renegotiate the base management fee and incentive fee prior to termination). Our management agreement may be terminated by Tremont before each annual renewal upon written notice delivered to our Board of Trustees no later than 180 days prior to an annual renewal date. We may also terminate our management agreement at any time without the payment of any termination fee, with at least 30 days’ prior written notice from us upon the occurrence of a “cause event,” as defined in the management agreement. Tremont may terminate our management agreement in certain other circumstances, including if we become required to register as an investment company under the 1940 Act for our uncured “material breach,” as defined in our management agreement, we materially reduce Tremont’s duties and responsibilities or scope of its authority under our management agreement or we cease or take steps to cease to conduct the business of originating or investing in CRE loans. Termination Fee. In the event our management agreement is terminated by us without a cause event or by Tremont for a material breach, we will be required to pay Tremont a termination fee equal to: (a) three times the sum of (i) the average annual base management fee and (ii) the average annual incentive fee, in each case paid or payable to Tremont during the 24 month period immediately preceding the most recently completed calendar quarter prior to the date of termination or, if such termination occurs within 24 months of its initial commencement, the base management fee and the incentive fee will be annualized for such two year period based on such fees earned by Tremont from January 5, 2021, through the most recently completed calendar quarter prior to the termination date, plus (b) $1,600. No termination fee will be payable if our management agreement is terminated by us for a cause event or by Tremont without our material breach. In addition, as described above, in connection with the Merger and the termination of TRMT’s management agreement with Tremont, the initial organizational costs related to TRMT’s formation and the costs of its initial public offering and the concurrent private placement that Tremont had paid pursuant to that management agreement of $6,680 will be included in the “Termination Fee” under and as defined in our management agreement with Tremont. Expense Reimbursement. Tremont, and not us, is responsible for the costs of its employees who provide services to us, including the cost of Tremont’s personnel who originate our loans, unless any such payment or reimbursement is specifically approved by a majority of our Independent Trustees, is a shared services cost or relates to awards made under any equity compensation plan adopted by us. Generally, it is the practice of Tremont and RMR to treat individuals who spend 50% or more of their business time providing services to Tremont as employees of Tremont. We are required to pay or to reimburse Tremont and its affiliates for all other costs and expenses of our operations, including but not limited to, the cost of rent, utilities, office furniture, equipment, machinery and other overhead type expenses, the costs of legal, accounting, auditing, tax planning and tax return preparation, consulting services, diligence costs related to our investments, investor relations expenses and other professional services, and other costs and expenses not specifically required under our management agreement to be borne by Tremont. Some of these overhead, professional and other services are provided by RMR pursuant to a shared services agreement between Tremont and RMR. We reimburse Tremont for shared services costs Tremont pays to RMR and its affiliates, and these reimbursements include an allocation of the cost of applicable personnel employed by RMR and our share of RMR’s costs of providing our internal audit function, with such shared services costs being subject to approval by a majority of our Independent Trustees at least annually. We incurred shared services costs of $2,232 and $1,565 for the years ended December 31, 2022 and 2021, respectively, payable to Tremont as reimbursement for shared services costs it paid to RMR. We include these amounts in reimbursement of shared services expenses in our consolidated statements of operations. Business Opportunities. Under our management agreement, we and Tremont have agreed that for so long as Tremont is managing us, neither Tremont nor any of its affiliates, including RMR, will sponsor or manage any other publicly traded REIT that invests primarily in first mortgage loans secured by middle market and transitional CRE located in the United States, unless such activity is approved by our Independent Trustees. However, our management agreement does not prohibit Tremont or its affiliates (including RMR) or their respective directors, trustees, officers, employees or agents from competing or providing services to other persons, funds and investment vehicles, private REITs or other entities that may compete with us, including, among other things, with respect to the origination, acquisition, making, arranging or managing of first mortgage loans secured by middle market or transitional CRE or other investments like those we intend to make. Because Tremont and RMR will not be prohibited from competing with us in all circumstances, and RMR provides management services to other companies, conflicts of interest exist with regard to the allocation of investment opportunities and for the time and attention of Tremont, RMR and their personnel. Our management agreement acknowledges these conflicts of interest and, in that agreement, we agree that Tremont, RMR and their subsidiaries may resolve such conflicts in good faith in their fair and reasonable discretion. In the case of such a conflict, Tremont, RMR and their subsidiaries will endeavor to allocate such investment opportunities in a fair and reasonable manner, taking into account such factors as they deem appropriate. Our management agreement also provides that if Tremont, its affiliates (including RMR) or any of their respective directors, trustees, officers, employees or agents acquires knowledge of a potential business opportunity, we renounce any potential interest or expectation in, or right to be offered or to participate in, such business opportunity to the maximum extent permitted by Maryland law. Liability and Indemnification . Tremont maintains a contractual as opposed to a fiduciary relationship with us. Pursuant to our management agreement, Tremont does not assume any responsibility other than to render the services called for thereunder in good faith and is not responsible for any action of our Board of Trustees in following or declining to follow its advice or recommendations. Under the terms of our management agreement, Tremont and its affiliates, including RMR, and their respective directors, trustees, officers, shareholders, owners, members, managers, employees and personnel will not be liable to us or any of our Trustees, shareholders or subsidiaries, or any of the trustees, directors or shareholders of any of our subsidiaries, for any acts or omissions related to the provision of services to us under our management agreement, except by reason of acts or omissions that have been determined in a final, non-appealable adjudication to have constituted bad faith, fraud, intentional misconduct, gross negligence or reckless disregard of the duties of Tremont under our management agreement. In addition, under the terms of our management agreement, we agree to indemnify, hold harmless and advance expenses to Tremont and its affiliates, including RMR, and their respective directors, trustees, officers, shareholders, owners, members, managers, employees and personnel from and against any and all expenses, losses, damages, liabilities, demands, charges and claims of any nature whatsoever, including all reasonable attorneys’, accountants’ and experts’ fees and expenses, arising from any acts or omissions related to the provision of services to us or the performance of any matters pursuant to an instruction by our Board of Trustees, except to the extent there is a final, non-appealable adjudication that such acts or omissions constituted bad faith, fraud, intentional misconduct, gross negligence or reckless disregard of the duties of Tremont under our management agreement. Such persons will also not be liable for trade errors that may result from ordinary negligence, including errors in the investment decision making or trade process. Other. In addition to the fees and expense reimbursements payable to Tremont under our management agreement, Tremont and its affiliates may benefit from other fees paid to them in respect of our investments. For example, if we seek to securitize some of our CRE loans, Tremont or its affiliates may act as collateral manager. In any of these or other capacities, Tremont and its affiliates may receive fees for their services if approved by a majority of our Independent Trustees.

Related Person Transactions

Related Person Transactions	12 Months Ended
	Dec. 31, 2022
Related Party Transactions [Abstract]
Related Person Transactions	Related Person Transactions We have relationships and historical and continuing transactions with Tremont, RMR, The RMR Group Inc., or RMR Inc., and others related to them, including other companies to which RMR or its subsidiaries provide management services and some of which have trustees, directors or officers who are also our Trustees or officers. Tremont is a subsidiary of RMR, which is a majority owned subsidiary of RMR Inc., and RMR Inc. is the managing member of RMR. RMR provides certain shared services to Tremont that are applicable to us, and we reimburse Tremont or pay RMR for the amounts Tremont or RMR pays for those services. One of our Managing Trustees and Chair of our Board of Trustees, Adam D. 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 Tremont, the chair of the board of directors, a managing director and the president and chief executive officer of RMR Inc., and an officer and employee of RMR. Matthew P. Jordan, our other Managing Trustee, is a director and the president and chief executive officer of Tremont. Mr. Jordan is also an officer of RMR Inc. and an officer and employee of RMR, and our other officers are officers and employees of Tremont and/or RMR. Our Independent Trustees also serve as independent directors or independent trustees of other public companies to which RMR or its subsidiaries provide management services. Adam D. Portnoy serves as the chair of the board and as a managing director or managing trustee of those companies and other officers of RMR, including Mr. Jordan and certain of our other officers and officers of Tremont, serve as managing trustees, managing directors or officers of certain of these companies. Our Manager, Tremont Realty Capital LLC. Tremont provides management services to us pursuant to our management agreement. See Note 9 for further information regarding our management agreement. Tremont also provided management services to TRMT until the Merger. On May 11, 2022, Tremont purchased 882,407 of our common shares from Diane Portnoy, the mother of Adam D. Portnoy. Tremont paid an aggregate purchase price of $9,469 for these shares. As of December 31, 2022, Tremont owned 1,708,058 of our common shares, or approximately 11.6% of our outstanding common shares, and Mr. Portnoy beneficially owned (including through Tremont and ABP Trust) 13.4% of our outstanding common shares. RMR Inc. and RMR . RMR provides certain shared services to Tremont which are applicable to us, and we reimburse Tremont or pay RMR for the amounts Tremont or RMR pays for those services. See Note 9 for further information regarding this shared services arrangement. TRMT . As described further in Note 4, we and TRMT merged on September 30, 2021. Prior to the Merger, Adam D. Portnoy and Matthew P. Jordan, our Managing Trustees, were also TRMT’s managing trustees, Thomas J. Lorenzini, our President, also served as president of TRMT, and G. Douglas Lanois, our former Chief Financial Officer and Treasurer, also served as chief financial officer and treasurer of TRMT. Joseph L. Morea, one of our Independent Trustees, previously served as an independent trustee of TRMT and Jeffrey P. Somers, one of our Independent Trustees, previously served as an independent trustee of TRMT. Effective upon the Merger, John L. Harrington resigned from our Board of Trustees; he had served as one of our Independent Trustees and as an independent trustee of TRMT. Share Awards to our Officers and Employees of Tremont and RMR . As described further in Note 8, we award shares to our officers and other employees of Tremont and/or RMR annually. Generally, one fifth of these awards vests on the award date and one fifth vests on each of the next four anniversaries of the award dates. These awards to employees of Tremont and RMR are in addition to the share awards to our Managing Trustees, as Trustee compensation, and the fees we paid to Tremont. We purchased common shares awarded to certain of our officers and employees of Tremont and/or RMR in satisfaction of tax withholding obligations in connection with the vesting of awards of our common shares. See Note 8 for further information regarding these purchases. Acceleration of Unvested Shares of a Former Officer. G. Douglas Lanois resigned as our Chief Financial Officer and Treasurer, effective September 30, 2022. Our Compensation Committee approved the acceleration of all 3,648 of the unvested shares owned by Mr. Lanois of us as of his separation date, January 1, 2023. We recognized share based compensation of $24 related to the acceleration of these shares during the year ended December 31, 2022.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesWe have elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended. 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 consolidated statements of operations.

Weighted Average Common Shares

Weighted Average Common Shares	12 Months Ended
	Dec. 31, 2022
Earnings Per Share [Abstract]
Weighted Average Common Shares	Weighted Average Common SharesWe calculate net income per common share - basic using the two class method. We calculate net income per common share - diluted using the more dilutive of the two class or treasury stock method. Unvested share awards and the related impact on earnings are considered when calculating net income per common share - basic and net income per common share - diluted. The calculation of basic and diluted earnings per common share is as follows (amounts in thousands, except per share data): Year Ended December 31, 2022 2021 Numerators: Net income $ 27,640 $ 24,650 Income attributable to unvested participating securities (193) — Net income used in calculating net income per common share $ 27,447 $ 24,650 Denominators: Weighted average common shares outstanding - basic and diluted 14,540 11,304 Net income per common share - basic and diluted $ 1.89 $ 2.18

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and ContingenciesAs of December 31, 2022, we had unfunded loan commitments of $49,007 related to our loans held for investment that are not reflected in our consolidated balance sheets. These unfunded loan commitments had a weighted average initial maturity of 1.6 years as of December 31, 2022. See Note 5 for further information related to our loans held for investment.

Schedule IV - Mortgage Loans on

Schedule IV - Mortgage Loans on Real Estate	12 Months Ended
	Dec. 31, 2022
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]
Schedule IV - Mortgage Loans on Real Estate	# Property Type/Location Interest Rate Maturity Date Maximum Maturity Date (1) Payment Terms (2) Prior Liens (3) Principal Carrying Value First Mortgage Loans (4) 1 Multifamily, Olmsted Falls, OH L + 4.00% 01/28/2024 01/28/2026 I/O — $ 46,083 $ 46,164 2 Office, Dallas, TX L + 3.25% 08/25/2024 08/25/2026 I/O — 43,450 39,314 3 Industrial, Passaic, NJ S + 3.85% 09/08/2025 09/08/2027 I/O — 38,440 38,010 4 Retail, Brandywine, MD S + 3.85% 03/29/2025 03/29/2027 I/O — 42,200 41,906 5 Retail, West Bloomfield, MI L + 3.85% 12/16/2023 12/16/2024 I/O — 37,453 37,363 6 Multifamily, Starkville, MS S + 4.00% 03/22/2025 03/22/2027 I/O — 36,787 36,506 7 Industrial, Summerville, SC L + 3.50% 12/20/2024 12/20/2026 I/O — 35,000 34,769 8 Multifamily, Farmington Hills, MI S + 3.15% 05/24/2025 05/24/2027 I/O — 28,691 28,746 9 Office, Downers Grove, IL L + 4.25% 11/25/2023 11/25/2024 I/O — 29,500 29,528 10 Multifamily, Las Vegas, NV S + 3.30% 06/10/2025 06/10/2027 I/O — 24,223 24,035 11 Office, St. Louis, MO L + 3.25% 03/20/2023 06/20/2023 I/O — 28,866 28,998 12 Office, Plano, TX L + 4.75% 07/01/2024 07/01/2026 I/O — 26,152 26,048 13 Office, Carlsbad, CA L + 3.25% 10/27/2024 10/27/2026 I/O — 23,825 23,672 14 Industrial, Fontana, CA S + 3.75% 11/18/2024 11/18/2026 I/O — 22,000 21,758 15 Office, Downers Grove, IL L + 4.25% 12/09/2024 12/09/2026 I/O — 23,530 23,493 16 Office, Dublin, OH S + 3.75% 02/18/2023 02/18/2023 I/O — 22,507 22,728 17 Office, Bellevue, WA L + 3.85% 11/05/2024 11/05/2026 I/O — 20,000 19,868 18 Multifamily, Portland, OR L + 3.57% 07/09/2024 07/09/2026 I/O — 19,687 19,611 19 Multifamily, Ames, IA L + 3.80% 11/15/2024 11/15/2026 I/O — 17,820 17,704 20 Office / Industrial, Aurora, IL L + 4.35% 12/18/2023 12/18/2024 I/O — 16,429 16,485 21 Office, Yardley, PA L + 4.58% 12/19/2023 12/19/2024 I/O — 15,583 15,643 22 Retail, Sandy Springs, GA L + 3.75% 09/23/2024 09/23/2026 I/O — 15,017 14,918 23 Retail, Delray Beach, FL S + 4.25% 03/18/2024 03/18/2026 I/O — 15,149 15,061 24 Office, Westminster, CO L + 3.75% 05/25/2024 05/25/2026 I/O — 14,634 13,428 25 Multifamily, Portland, OR L + 3.57% 07/30/2024 07/30/2026 I/O — 13,400 12,183 26 Multifamily, Seattle, WA L + 3.55% 08/16/2024 08/16/2026 I/O — 12,354 12,282 27 Industrial, Allentown, PA S + 3.50% 01/24/2024 01/24/2025 I/O — 9,775 9,708 Total $ 678,555 $ 669,929 (1) Maximum maturity assumes all extension option have been exercised, which options are subject to the borrower meeting certain conditions. (2) I/O = interest only until final maturity. (3) Represents only third party prior liens. (4) As of December 31, 2022, none of our borrowers were delinquent in payment. Reconciliation of Mortgage Loans on Real Estate: Carrying Value Balance as of January 1, 2021 $ 91,879 Additions during the year: Originations 347,366 Loans acquired in the Merger 205,593 Additional funding 4,710 Purchase discount accretion 18,932 Net amortization of deferred fees 1,835 Deductions during the year: Repayment of mortgage loans (59,197) Deferred fees (3,895) Purchase discount on loans acquired in the Merger (36,443) Balance as of December 31, 2021 570,780 Additions during the year: Originations 203,244 Additional funding 17,310 Purchase discount accretion 10,689 Net amortization of deferred fees 3,780 Deductions during the year: Repayments (133,568) Deferred fees (2,306) Balance as of December 31, 2022 $ 669,929

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation. These consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles, or GAAP, which requires us to make estimates and assumptions that affect reported amounts.
Use of Estimates	Actual results could differ from those estimates. Significant estimates in the accompanying consolidated financial statements include the fair value of financial instruments.
Consolidation	Consolidation. These consolidated financial statements include the accounts of ours 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 received 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.
Secured Financing Agreements	Secured Financing Agreements. Loans financed through our Secured Financing Agreements (as defined in Note 6) are treated as collateralized financing transactions, unless they meet sales treatment under GAAP. Pursuant to GAAP treatment of collateralized financing transactions, loans financed through our Secured Financing Agreements remain on our consolidated balance sheets as assets and cash received from the purchasers is recorded on our consolidated balance sheets as liabilities. Interest paid in accordance with our Secured Financing Agreements is recorded as interest expense.
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. Loans that are held for investment are carried at cost, net of unamortized loan origination fees, accreted exit fees, unamortized premiums and unaccreted discounts, as applicable, 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” (less risk) through “5” (greater risk) 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 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 consolidated statements of operations.
Fair Value of Financial Instruments	Fair Value of Financial Instruments. We determine the estimated fair value of financial assets and liabilities using the three-tier fair value hierarchy established by GAAP, which prioritizes observable inputs in active markets when measuring fair value. The three levels of inputs that may be used to measure fair value in order of priority 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 fees charged to our borrowers and unamortized or unaccreted balances are reflected as a reduction in loans held for investment, net, in our consolidated balance sheets. These fees are recognized in 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 a reduction to the related liability in our consolidated balance sheets. Deferred financing costs are amortized over the term of the respective financing agreement and are recorded in our 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 - basic using the two class method. We calculate net income per common share - diluted using the more dilutive of the two class or treasury stock method.
Revenue Recognition	Revenue Recognition. Interest income related to our first mortgage 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 until 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. We did not have any non-accrual loans as of December 31, 2022. 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.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board, or 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 replaces the “incurred loss” model for recognizing credit losses with a forward-looking “expected loss” model that generally will result in the earlier recognition of credit losses. The measurement of current expected credit losses, or CECL, is based upon historical experience, current conditions, and reasonable and supportable forecasts incorporating forward-looking information that affect the collectability of the reported amount. CECL is applicable to financial assets measured at amortized cost and off-balance sheet credit exposures, such as unfunded loan commitments. The reserve required under ASU No. 2016-13 is a valuation account that is deducted from the related loans’ amortized cost basis on our consolidated balance sheets and will reduce our total stockholders’ equity. ASU No. 2016-13 requires a cumulative-effect adjustment to equity as of the beginning of the reporting period of adoption. However, future changes to the reserve will be recognized in net income on our consolidated statements of operations. As a smaller reporting company, ASU No. 2016-13 is effective on January 1, 2023. The implementation process included selection of a credit loss model, changes to our internal reporting processes, changes to our internal controls and documentation of related policies and procedures. Given the lack of historical loss data related to our loan portfolio, we elected to estimate our expected losses using an analytical model that considers the likelihood of default and loss given default for each individual loan. This analytical model incorporates data from a third party database with historical loan loss information for commercial mortgage-backed securities and CRE loans since 1998. Significant inputs to the model include certain loan specific data, such as LTV, property type, geographic location, occupancy, debt service coverage ratio and/or net operating income and a macroeconomic forecast. We may use other acceptable alternative approaches in the future depending on, among other factors, the type of loan, underlying collateral and availability of relevant historical market loan loss data. Based on our loan portfolio, including unfunded loan commitments, at December 31, 2022, the current economic environment and expectations for future conditions, upon adoption of ASU No. 2016-13, we expect to record a cumulative-effect adjustment to reduce our cumulative net income within a range of $6,000 to $8,000, or $0.41 to $0.54 per common share. In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures , which eliminated the guidance for and recognitions of troubled debt restructurings for all entities that have adopted ASU No. 2016-13. Instead, an entity must apply the loan refinancing and restructure guidance in Accounting Standards Codification, or ASC, Topic 310, Receivables (Topic 310), to determine whether a modification results in a new loan or continuation of an existing loan. If a borrower is experiencing financial difficulty, enhanced disclosures are required. ASU No. 2022-02 also amended the guidance on vintage disclosures to require disclosure of current period gross write-offs by year of origination. The adoption of ASU No. 2022-02 prospectively on January 1, 2023, concurrently with the adoption of ASU No. 2016-13 did not have a material impact on our condensed consolidated financial statements.

Merger with Tremont Mortgage _2

Merger with Tremont Mortgage Trust (Tables)	12 Months Ended
	Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]
Summary of Asset Acquisition	The table below summarizes the consideration transferred and liabilities assumed as a result of the Merger: TRMT Common Shares outstanding 8,303,629 Multiplied by the exchange ratio 0.516 4,284,673 TRMT fractional shares adjustment (73) SEVN common shares issued 4,284,600 Closing price of SEVN common shares on September 30, 2021 $ 10.31 Value of consideration transferred $ 44,174 Assumed working capital (10,146) Assumed Citibank Master Repurchase Facility, principal balance 128,962 Merger related costs 6,160 Consideration transferred and liabilities assumed $ 169,150 The table below summarizes the purchase price allocation for the Merger: Cash and cash equivalents $ 11,070 Loans held for investment, net 169,150 Accrued interest receivable 603 Prepaid expenses and other assets 31 Total assets 180,854 Accounts payable and other liabilities (901) Citibank Master Repurchase Facility (128,962) Due to related persons (657) Net assets acquired 50,334 Assumed working capital (10,146) Assumed Citibank Master Repurchase Facility, principal balance 128,962 Consideration transferred and liabilities assumed $ 169,150

Loans Held for Investment (Tabl

Loans Held for Investment (Tables)	12 Months Ended
	Dec. 31, 2022
Receivables [Abstract]
Schedule of Loans	The table below provides overall statistics for our loan portfolio as of December 31, 2022 and 2021: As of December 31, 2022 2021 Number of loans 27 26 Total loan commitments $ 727,562 $ 648,266 Unfunded loan commitments (1) $ 49,007 $ 57,772 Principal balance (2) $ 678,555 $ 590,590 Carrying value $ 669,929 $ 570,780 Weighted average coupon rate 8.07 % 4.54 % Weighted average all in yield (2) 8.57 % 5.08 % Weighted average floor 0.62 % 0.68 % Weighted average maximum maturity (years) (3) 3.3 3.8 Weighted average risk rating 2.9 2.9 (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) All in yield represents the yield on a loan, including amortization of deferred fees over the initial term of the loan and excluding any purchase discount accretion. (3) Maximum maturity assumes all borrower loan extension options have been exercised, which options are subject to the borrower meeting certain conditions. The table below represents our loan activities during 2021 and 2022: Principal Balance Deferred Fees and Other Items Carrying Value Balance at December 31, 2020 $ 92,863 $ (984) $ 91,879 Additional funding 4,710 — 4,710 Originations 347,366 (3,895) 343,471 Repayments (59,041) (156) (59,197) Net amortization of deferred fees — 1,835 1,835 Loans acquired in Merger (1) 204,692 901 205,593 Purchase discount on loans acquired in Merger — (36,443) (36,443) Purchase discount accretion (2) — 18,932 18,932 Balance at December 31, 2021 590,590 (19,810) 570,780 Additional funding 17,310 — 17,310 Originations 203,244 (2,306) 200,938 Repayments (132,589) (979) (133,568) Net amortization of deferred fees — 3,780 3,780 Purchase discount accretion — 10,689 10,689 Balance at December 31, 2022 $ 678,555 $ (8,626) $ 669,929 (1) Deferred fees and other items for loans acquired in Merger represent exit fees contractually due upon repayment of loans acquired in the Merger. (2) Purchase discount accretion for the year ended December 31, 2021 reflects the impact of a waived exit fee of $120 due from a borrower of a loan acquired in the Merger. The tables below detail the property type and geographic location of the properties securing the loans in our portfolio as of December 31, 2022 and 2021: As of December 31, 2022 2021 Property Type Number of Loans Carrying Value Percentage of Value Number of Loans Carrying Value Percentage of Value Office (1) 11 $ 252,796 38 % 13 $ 269,865 47 % Multifamily 8 197,229 29 % 5 106,002 19 % Industrial (1) 4 110,656 17 % 3 92,791 16 % Retail 4 109,248 16 % 4 88,724 16 % Lab — — — % 1 13,398 2 % 27 $ 669,929 100 % 26 $ 570,780 100 % (1) As of December 31, 2021, two loan investments secured by mixed use properties consisting of office space and an industrial warehouse in Aurora, IL and Colorado Springs, CO were 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 consisted of office space. The carrying value of these loan investments were reflected in office and industrial based on the fair value of the buildings at the time of origination relative to the total fair values of the properties. During the year ended December 31, 2022, our loan investment in Colorado Springs, CO was repaid. As of December 31, 2022 2021 Geographic Location Number of Loans Carrying Value Percentage of Value Number of Loans Carrying Value Percentage of Value Midwest 9 $ 251,208 37 % 8 $ 216,700 38 % South 6 166,616 25 % 7 153,495 27 % West 8 146,837 22 % 8 145,453 25 % East 4 105,268 16 % 3 55,132 10 % 27 $ 669,929 100 % 26 $ 570,780 100 % The table below allocates the carrying value of our loan portfolio as of December 31, 2022 and 2021 based on our internal risk rating policy: As of December 31, 2022 2021 Risk Rating Number of Loans Carrying Value Number of Loans Carrying Value 1 1 $ 9,708 — $ — 2 6 134,642 4 94,743 3 17 434,116 21 463,600 4 3 91,463 1 12,437 5 — — — — 27 $ 669,929 26 $ 570,780

Secured Financing Agreements (T

Secured Financing Agreements (Tables)	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
Schedule of Secured Financing Agreements	The table below summarizes our Secured Financing Facilities as of December 31, 2022 and 2021: Debt Obligation Weighted Average Collateral Maximum Facility Size Principal Balance Carrying Value Coupon Rate (1) Remaining Maturity (years) (2) Principal Balance December 31, 2022: Citibank Master Repurchase Facility $ 215,000 $ 150,647 $ 150,360 6.34 % 1.1 $ 205,234 UBS Master Repurchase Facility 192,000 144,437 143,887 6.48 % 1.1 198,254 BMO Facility 150,000 111,105 110,473 6.22 % 2.2 148,476 Wells Fargo Master Repurchase Facility 125,000 67,426 66,801 6.23 % 2.1 89,008 Total/weighted average $ 682,000 $ 473,615 $ 471,521 6.34 % 1.5 $ 640,972 December 31, 2021: Citibank Master Repurchase Facility $ 213,482 $ 161,825 $ 161,724 2.03 % 0.7 $ 222,129 UBS Master Repurchase Facility 192,000 167,928 167,024 2.09 % 2.0 225,868 BMO Facility 100,000 11,116 10,879 2.01 % 2.7 14,821 Total/weighted average $ 505,482 $ 340,869 $ 339,627 2.06 % 1.4 $ 462,818 (1) The weighted average coupon rate is determined using LIBOR or SOFR plus a spread ranging from 1.80% to 2.51%, as applicable, for the respective borrowings under our Secured Financing Facilities as of the applicable date. (2) The weighted average remaining maturity is determined using the current maturity date of our corresponding loan investments, assuming no borrower loan extension options have been exercised. As of December 31, 2022, our Citibank Master Repurchase Facility, UBS Master Repurchase Facility and Wells Fargo Master Repurchase Facility mature on March 15, 2025, February 18, 2024 and March 11, 2025, respectively. Our BMO Facility matures at various dates based on the respective underlying loans held for investment.
Schedule of Maturities of Long-term Debt	As of December 31, 2022, our outstanding borrowings under our Secured Financing Facilities had the following remaining maturities: Maturity Year Principal Payments 2023 $ 99,112 2024 264,246 2025 110,257 2026 and thereafter — $ 473,615

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The table below provides carrying values and fair values of our financial assets and liabilities not carried at fair value in our consolidated balance sheets: As of December 31, 2022 2021 Carrying Value Fair Value Carrying Value Fair Value Financial assets Loans held for investment $ 669,929 $ 679,911 $ 570,780 $ 597,669 Financial liabilities Secured Financing Facilities $ 471,521 $ 471,362 $ 339,627 $ 341,679

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	12 Months Ended
	Dec. 31, 2022
Equity [Abstract]
Schedule of Unvested Share Activity	A summary of shares granted, forfeited, vested and unvested under the terms of the 2021 Plan for the years ended December 31, 2022 and 2021 is as follows: 2022 2021 Number of Weighted Average Grant Number of Weighted Average Grant Unvested shares, beginning of year 91,584 $ 10.39 — $ — Shares granted 127,000 $ 10.29 116,000 $ 10.63 Shares forfeited (1,016) $ 10.39 — $ — Shares vested (87,888) $ 10.45 (50,786) $ 10.89 Shares granted at the effective date of the Merger — $ — 26,370 $ 10.31 Unvested shares, end of year 129,680 $ 10.24 91,584 $ 10.39
Schedule of Dividends Declared	During the years ended December 31, 2022 and 2021, we paid distributions to common shareholders as follows: Characterization of Distributions Year Annual Per Share Distribution Total Distribution Return of Capital Ordinary Income Qualified Dividend 2022 $ 1.00 $ 14,636 — % 100 % — % 2021 $ 0.45 $ 4,595 21 % 79 % — %

Weighted Average Common Shares

Weighted Average Common Shares (Tables)	12 Months Ended
	Dec. 31, 2022
Earnings Per Share [Abstract]
Schedule of Weighted Average Number of Shares	The calculation of basic and diluted earnings per common share is as follows (amounts in thousands, except per share data): Year Ended December 31, 2022 2021 Numerators: Net income $ 27,640 $ 24,650 Income attributable to unvested participating securities (193) — Net income used in calculating net income per common share $ 27,447 $ 24,650 Denominators: Weighted average common shares outstanding - basic and diluted 14,540 11,304 Net income per common share - basic and diluted $ 1.89 $ 2.18

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Additional Information (Details)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Percent ownership	100%

Recent Accounting Pronounceme_2

Recent Accounting Pronouncements (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Jan. 01, 2023	Dec. 31, 2022	Dec. 31, 2021
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net income		$ 27,640	$ 24,650
Net income per common share, basic (in dollars per share)		$ 1.89	$ 2.18
Net income per common share, diluted (in dollars per share)		$ 1.89	$ 2.18
Accounting Standards Update 2016-13 | Subsequent Event | Forecast | Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net income	$ 6,000
Net income per common share, basic (in dollars per share)	$ 0.41
Net income per common share, diluted (in dollars per share)	$ 0.41
Accounting Standards Update 2016-13 | Subsequent Event | Forecast | Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net income	$ 8,000
Net income per common share, basic (in dollars per share)	$ 0.54
Net income per common share, diluted (in dollars per share)	$ 0.54

Merger with Tremont Mortgage _3

Merger with Tremont Mortgage Trust - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Sep. 30, 2021	Dec. 31, 2022	Dec. 31, 2021
Asset Acquisition [Line Items]
Common shares, par value (in dollars per share)		$ 0.001	$ 0.001
Purchase discount accretion		$ 10,689	$ 18,932
TRMT Merger
Asset Acquisition [Line Items]
Common shares, par value (in dollars per share)	$ 0.001
Exchange ratio of shares issued per acquiree share ( in shares)	0.516
Share price (in dollars per share)	$ 10.31
Aggregate transaction value paid	$ 169,150
Assumed Citibank Master Repurchase Facility, principal balance	128,962
Merger related costs	6,160
Assumed working capital	(10,146)
Purchase discount	$ 36,443
Purchase discount accretion		$ 10,689	$ 18,932
TRMT Merger | Tremont Mortgage Trust
Asset Acquisition [Line Items]
Common shares, par value (in dollars per share)	$ 0.01
TRMT Merger | Tremont Mortgage Trust And Seven Hills Realty Trust
Asset Acquisition [Line Items]
Merger related costs	$ 6,160

Merger with Tremont Mortgage _4

Merger with Tremont Mortgage Trust - Summary of Consideration Transferred and Liabilities Assumed (Details) - TRMT Merger $ / shares in Units, $ in Thousands	Sep. 30, 2021 USD ($) $ / shares shares
Asset Acquisition [Line Items]
TRMT common shares outstanding (in shares) | shares	8,303,629
Exchange ratio of shares issued per acquiree share ( in shares) | shares	0.516
SEVN Common Shares issued, before adjustment (in shares) | shares	4,284,673
TRMT fractional shares adjustment (in shares) | shares	(73)
SEVN common shares issued (in shares) | shares	4,284,600
Share price (in dollars per share) | $ / shares	$ 10.31
Value of consideration transferred | $	$ 44,174
Assumed working capital | $	(10,146)
Assumed Citibank Master Repurchase Facility, principal balance | $	128,962
Merger related costs | $	6,160
Consideration transferred and liabilities assumed | $	$ 169,150

Merger with Tremont Mortgage _5

Merger with Tremont Mortgage Trust - Purchase Price Allocation (Details) - TRMT Merger $ in Thousands	Sep. 30, 2021 USD ($)
Asset Acquisition [Line Items]
Cash and cash equivalents	$ 11,070
Loans held for investment, net	169,150
Accrued interest receivable	603
Prepaid expenses and other assets	31
Total assets	180,854
Accounts payable and other liabilities	(901)
Citibank Master Repurchase Facility	(128,962)
Due to related persons	(657)
Net assets acquired	50,334
Assumed working capital	(10,146)
Assumed Citibank Master Repurchase Facility, principal balance	128,962
Consideration transferred and liabilities assumed	$ 169,150

Loans Held for Investment - Loa

Loans Held for Investment - Loan Portfolio Statistics (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) loan	Dec. 31, 2021 USD ($) loan	Dec. 31, 2020 USD ($)
Receivables [Abstract]
Number of Loans | loan	27	26
Total loan commitments	$ 727,562	$ 648,266
Unfunded loan commitments	49,007	57,772
Principal balance	678,555	590,590	$ 92,863
Carrying value	$ 669,929	$ 570,780
Weighted average coupon rate	8.07%	4.54%
Weighted average all in yield	8.57%	5.08%
Weighted average floor	0.62%	0.68%
Weighted average maximum maturity (years)	3 years 3 months 18 days	3 years 9 months 18 days
Weighted average risk rating	2.9	2.9

Loans Held for Investment - L_2

Loans Held for Investment - Loan Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Loan Activities
Principal, beginning balance	$ 590,590	$ 92,863
Deferred fees and other items, beginning balance	(19,810)	(984)
Carrying value, beginning balance	570,780	91,879
Additional funding	17,310	4,710
Originations	203,244	347,366
Deferred fees	(2,306)	(3,895)
Carrying value, originations	200,938	343,471
Repayments	(132,589)	(59,041)
Deferred fees and other items, repayments	(979)	(156)
Carrying value, repayment	(133,568)	(59,197)
Net amortization of deferred fees	3,780	1,835
Loans acquired in Merger		204,692
Deferred fees and other items, loans acquired in Merger		901
Loans acquired in Merger, net		205,593
Purchase discount on mortgage loans acquired, deferred fees		(36,443)
Purchase discount on loans acquired in the Merger		(36,443)
Purchase discount accretion	10,689	18,932
Principal, ending balance	678,555	590,590
Deferred fees and other items, ending balance	(8,626)	(19,810)
Carrying value, ending balance	669,929	$ 570,780
Loan origination and exit fees, net of amortization	$ 120

Loans Held for Investment - L_3

Loans Held for Investment - Loan Portfolio (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) loan	Dec. 31, 2021 USD ($) loan	Dec. 31, 2020 USD ($)
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	27	26
Carrying Value | $	$ 669,929	$ 570,780	$ 91,879
Percentage of Value	100%	100%
East
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	4	3
Carrying Value | $	$ 105,268	$ 55,132
Percentage of Value	16%	10%
South
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	6	7
Carrying Value | $	$ 166,616	$ 153,495
Percentage of Value	25%	27%
West
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	8	8
Carrying Value | $	$ 146,837	$ 145,453
Percentage of Value	22%	25%
Midwest
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	9	8
Carrying Value | $	$ 251,208	$ 216,700
Percentage of Value	37%	38%
Office
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	11	13
Carrying Value | $	$ 252,796	$ 269,865
Percentage of Value	38%	47%
Multifamily
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	8	5
Carrying Value | $	$ 197,229	$ 106,002
Percentage of Value	29%	19%
Industrial
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	4	3
Carrying Value | $	$ 110,656	$ 92,791
Percentage of Value	17%	16%
Retail
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	4	4
Carrying Value | $	$ 109,248	$ 88,724
Percentage of Value	16%	16%
Lab
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	0	1
Carrying Value | $	$ 0	$ 13,398
Percentage of Value	0%	2%

Loans Held for Investment - L_4

Loans Held for Investment - Loan Risk Ratings (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) loan	Dec. 31, 2021 USD ($) loan	Dec. 31, 2020 USD ($)
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	27	26
Carrying Value | $	$ 669,929	$ 570,780	$ 91,879
Risk Rating, 1
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	1	0
Carrying Value | $	$ 9,708	$ 0
Risk Rating, 2
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	6	4
Carrying Value | $	$ 134,642	$ 94,743
Risk Rating, 3
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	17	21
Carrying Value | $	$ 434,116	$ 463,600
Risk Rating, 4
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	3	1
Carrying Value | $	$ 91,463	$ 12,437
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

Loans Held for Investment - Nar

Loans Held for Investment - Narrative (Details) $ in Thousands		12 Months Ended
	Feb. 28, 2022 USD ($)	Dec. 31, 2022 USD ($) loan	Dec. 31, 2021 USD ($) loan	Dec. 31, 2020 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Weighted average risk rating		2.9	2.9
Number of Loans | loan		27	26
Percentage of Value		100%	100%
Principal		$ 678,555	$ 590,590	$ 92,863
First Mortgage Bridge Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Principal		$ 678,555
Retail
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | loan		4	4
Percentage of Value		16%	16%
Office
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | loan		11	13
Percentage of Value		38%	47%
Yardley, PA | Office | First Mortgage Bridge Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Principal		$ 15,583
Office Property, Yardley, PA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Increase of loan commitment from amendment	$ 1,600
Unaccreted purchase discount		$ 1,748
Office Property, Yardley, PA | LIBOR
Accounts, Notes, Loans and Financing Receivable [Line Items]
Variable rate	12%
Risk Rating, 4
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | loan		3	1
Percentage of Value		14%

Secured Financing Agreements -

Secured Financing Agreements - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Apr. 25, 2022	Mar. 15, 2022	Mar. 11, 2022	Dec. 31, 2021	Nov. 09, 2021	Feb. 18, 2021
Assets Sold under Agreements to Repurchase [Line Items]
Aggregate outstanding principal balance of secured financing facilities	$ 473,615
Mortgages and Related Assets
Assets Sold under Agreements to Repurchase [Line Items]
Maximum Facility Size	$ 682,000				$ 505,482
UBS | 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%
Minimum percentage of margin to advance							75%
Percentage of loan guaranteed							25%
Debt instrument, loan percentage guaranteed in event of certain bad acts							100%
UBS | Asset Specific Financing
Assets Sold under Agreements to Repurchase [Line Items]
Maximum Facility Size							$ 192
Citibank | Mortgages and Related Assets
Assets Sold under Agreements to Repurchase [Line Items]
Percentage of purchased asset, initial purchase price	75%
Minimum percentage of margin to advance	75%
Percentage of loan guaranteed	25%
Citibank | Mortgages and Related Assets | LIBOR
Assets Sold under Agreements to Repurchase [Line Items]
Variable basis spread	2%
Citibank | Mortgages and Related Assets | Minimum | LIBOR
Assets Sold under Agreements to Repurchase [Line Items]
Variable basis spread	2%
Citibank | Mortgages and Related Assets | Maximum
Assets Sold under Agreements to Repurchase [Line Items]
Maximum Facility Size			$ 215,000
Citibank | Mortgages and Related Assets | Maximum | LIBOR
Assets Sold under Agreements to Repurchase [Line Items]
Variable basis spread	2.50%
BMO | Mortgages and Related Assets
Assets Sold under Agreements to Repurchase [Line Items]
Minimum percentage of margin to advance						80%
Percentage of loan guaranteed						25%
Debt instrument, loan percentage guaranteed in event of certain bad acts							100%
BMO | Asset Specific Financing
Assets Sold under Agreements to Repurchase [Line Items]
Maximum Facility Size	$ 150,000	$ 150,000			$ 100,000	$ 100,000
Wells Fargo | Mortgages and Related Assets
Assets Sold under Agreements to Repurchase [Line Items]
Percentage of loan guaranteed	25%
Debt instrument, loan percentage guaranteed in event of certain bad acts	100%
Wells Fargo | Mortgages and Related Assets | Minimum
Assets Sold under Agreements to Repurchase [Line Items]
Percent of purchased asset				75%
Wells Fargo | Mortgages and Related Assets | Maximum
Assets Sold under Agreements to Repurchase [Line Items]
Percent of purchased asset				80%
Wells Fargo | Asset Specific Financing
Assets Sold under Agreements to Repurchase [Line Items]
Maximum Facility Size				$ 125,000
Option to increase the maximum facility amount				$ 250,000

Secured Financing Agreements _2

Secured Financing Agreements - Schedule of Secured Financing Agreements (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Apr. 25, 2022	Mar. 15, 2022	Mar. 11, 2022	Nov. 09, 2021	Feb. 18, 2021
Mortgages and Related Assets
Debt Instrument [Line Items]
Maximum Facility Size	$ 682,000	$ 505,482
Principal Balance	473,615	340,869
Carrying Value	$ 471,521	$ 339,627
Coupon Rate	6.34%	2.06%
Remaining maturity (Years)	1 year 6 months	1 year 4 months 24 days
Principal Balance	$ 640,972	$ 462,818
LIBOR Or SOFR | Mortgages and Related Assets | Maximum
Debt Instrument [Line Items]
Coupon Rate	2.51%	2.51%
LIBOR Or SOFR | Mortgages and Related Assets | Minimum
Debt Instrument [Line Items]
Coupon Rate	1.80%	1.80%
Citibank | Mortgages and Related Assets | Maximum
Debt Instrument [Line Items]
Maximum Facility Size				$ 215,000
Citibank | Master Repurchase Facility
Debt Instrument [Line Items]
Maximum Facility Size	$ 215,000	$ 213,482
Principal Balance	150,647	161,825
Carrying Value	$ 150,360	$ 161,724
Coupon Rate	6.34%	2.03%
Remaining maturity (Years)	1 year 1 month 6 days	8 months 12 days
Principal Balance	$ 205,234	$ 222,129
UBS | Master Repurchase Facility
Debt Instrument [Line Items]
Maximum Facility Size	192,000	192,000
Principal Balance	144,437	167,928
Carrying Value	$ 143,887	$ 167,024
Coupon Rate	6.48%	2.09%
Remaining maturity (Years)	1 year 1 month 6 days	2 years
Principal Balance	$ 198,254	$ 225,868
UBS | Asset Specific Financing
Debt Instrument [Line Items]
Maximum Facility Size							$ 192
BMO | Asset Specific Financing
Debt Instrument [Line Items]
Maximum Facility Size	150,000	100,000	$ 150,000			$ 100,000
Principal Balance	111,105	11,116
Carrying Value	$ 110,473	$ 10,879
Coupon Rate	6.22%	2.01%
Remaining maturity (Years)	2 years 2 months 12 days	2 years 8 months 12 days
Principal Balance	$ 148,476	$ 14,821
Wells Fargo | Master Repurchase Facility
Debt Instrument [Line Items]
Maximum Facility Size	125,000
Principal Balance	67,426
Carrying Value	$ 66,801
Coupon Rate	6.23%
Remaining maturity (Years)	2 years 1 month 6 days
Principal Balance	$ 89,008
Wells Fargo | Asset Specific Financing
Debt Instrument [Line Items]
Maximum Facility Size					$ 125,000

Secured Financing Agreements _3

Secured Financing Agreements - Debt Maturities (Details) - Mortgages and Related Assets $ in Thousands	Dec. 31, 2022 USD ($)
Debt Instrument [Line Items]
2023	$ 99,112
2024	264,246
2025	110,257
2026 and thereafter	0
Total	$ 473,615

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Recurring Fair Value (Details) - Level III - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for investment	$ 669,929	$ 570,780
Secured Financing Facilities	471,521	339,627
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for investment	679,911	597,669
Secured Financing Facilities	$ 471,362	$ 341,679

Shareholders' Equity - Narrativ

Shareholders' Equity - Narrative (Details) $ / shares in Units, $ in Thousands			12 Months Ended
	Jan. 23, 2023 USD ($)	Jan. 12, 2023 $ / shares	Dec. 31, 2022 USD ($) installment shares	Dec. 31, 2021 USD ($) shares
Subsidiary, Sale of Stock [Line Items]
Share repurchases (in shares)			13,898	5,530
Shares repurchased | $			$ 137	$ 57
Total Distribution | $			$ 14,636	$ 4,595
Subsequent Event
Subsidiary, Sale of Stock [Line Items]
Distribution per Share, declared (in dollars per share) | $ / shares		$ 0.35
Total Distribution | $	$ 5,148
2021 Equity Compensation Plan | Restricted Unvested Common Shares
Subsidiary, Sale of Stock [Line Items]
Shares granted (in shares)			127,000	116,000
Number of installments | installment			5
2023			44,089
2024			36,291
2025			32,300
2026			17,000
Future compensation expense | $			$ 1,180
Future compensation expense, period of recognition			23 months
Compensation expense | $			$ 1,018	$ 627
Common shares available for issuance (in shares)			251,074
Officers And Certain Other Employees Compensation Arrangement | Restricted Unvested Common Shares
Subsidiary, Sale of Stock [Line Items]
Shares granted (in shares)			85,000	83,000
Grants in period | $			$ 859	$ 864
Trustee Compensation Arrangements | Restricted Unvested Common Shares
Subsidiary, Sale of Stock [Line Items]
Shares granted (in shares)			6,000	6,000
Grants in period | $			$ 448	$ 369

Shareholders' Equity - Nonveste

Shareholders' Equity - Nonvested Share Activity (Details) - Restricted Unvested Common Shares - 2021 Equity Compensation Plan - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Number of Shares
Unvested shares, beginning of year (in shares)	91,584	0
Shares granted (in shares)	127,000	116,000
Shares forfeited (in shares)	(1,016)	0
Shares vested (in shares)	(87,888)	(50,786)
Shares granted at the Effective Time of the Merger (in shares)	0	26,370
Unvested shares, end of year (in shares)	129,680	91,584
Weighted Average Grant Date Fair Value
Unvested shares, beginning of year (in dollars per share)	$ 10.39	$ 0
Shares granted (in dollars per share)	10.29	10.63
Shares forfeited (in dollars per share)	10.39	0
Shares vested (in dollars per share)	10.45	10.89
Shares granted at the Effective Time of the Merger (in dollars per share)	0	10.31
Unvested shares, end of year (in dollars per share)	$ 10.24	$ 10.39

Shareholders' Equity - Repurcha

Shareholders' Equity - Repurchases and Distributions (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Equity [Abstract]
Distribution per Share, paid (in dollars per share)	$ 1	$ 0.45
Total Distribution	$ 14,636	$ 4,595
Return of Capital	0%	21%
Ordinary Income	100%	79%
Qualified Dividend	0%	0%

Management Agreement with Tre_2

Management Agreement with Tremont (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) employee	Dec. 31, 2021 USD ($)	Jan. 05, 2021
Related Party Transaction [Line Items]
Number of employees | employee	0
Annualized base management fee			1.50%
Quarterly base management fee			0.375%
Incentive fee percentage			20%
Base management fee, percent of equity			7%
Base management fees	$ 4,260	$ 3,221
Management agreement term	1 year
Management agreement terminated upon written notice delivered term	180 days
Management agreement, termination rights, affirmative vote threshold, percentage	66.67%
Management agreement, terminated upon written notice, cause event term	30 days
Management agreement termination fee	3
Termination fee calculation period	24 months
Termination fee calculation annualized period	2 years
Exit fees	$ 1,600
Formation costs included in termination fee	6,680
Reimbursement of shared services expenses	$ 2,232	$ 1,565
Shared Service Costs | Principal Owner
Related Party Transaction [Line Items]
Percent threshold to be considered employee of manager	50%

Related Person Transactions (De

Related Person Transactions (Details) - Affiliated Entity - USD ($) $ in Thousands			12 Months Ended
	Sep. 30, 2022	May 11, 2022	Dec. 31, 2022
Officers and Employees | Share-based Payment Arrangement, Tranche One
Related Party Transaction [Line Items]
Vesting percentage of awards granted			20%
Officers and Employees | Share-based Payment Arrangement, Tranche Two
Related Party Transaction [Line Items]
Vesting percentage of awards granted			20%
Officers and Employees | Share-based Payment Arrangement, Tranche Three
Related Party Transaction [Line Items]
Vesting percentage of awards granted			20%
Officers and Employees | Share-Based Payment Arrangement, Tranche Four
Related Party Transaction [Line Items]
Vesting percentage of awards granted			20%
Officers and Employees | Share-Based Payment Arrangement, Tranche Five
Related Party Transaction [Line Items]
Vesting percentage of awards granted			20%
Chief Financial Officer
Related Party Transaction [Line Items]
Accelerated vesting (in shares)	3,648
Accelerated compensation cost			$ 24
Management Services | Diane Portnoy
Related Party Transaction [Line Items]
Ownership percentage		13.40%
Management Services | Diane Portnoy | Tremont Realty Advisors Llc
Related Party Transaction [Line Items]
Common shares purchased (in shares)		882,407
Aggregate purchase price		$ 9,469
Management Services | Tremont Realty Advisors Llc
Related Party Transaction [Line Items]
Shares owned by related party (in shares)		1,708,058
Ownership percentage		11.60%

Weighted Average Common Share_2

Weighted Average Common Shares (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Numerators:
Net income	$ 27,640	$ 24,650
Income attributable to unvested participating securities	(193)	0
Net income used in calculating net income per common share, basic	27,447	24,650
Net income used in calculating net income per common share, diluted	$ 27,447	$ 24,650
Denominators:
Weighted average common shares outstanding - basic (in shares)	14,540	11,304
Weighted average common shares outstanding - diluted (in shares)	14,540	11,304
Net income per common share, basic (in dollars per share)	$ 1.89	$ 2.18
Net income per common share, diluted (in dollars per share)	$ 1.89	$ 2.18

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Loss Contingencies [Line Items]
Unfunded loan commitments	$ 49,007	$ 57,772
Weighted average initial maturity	3 years 3 months 18 days	3 years 9 months 18 days
Unfunded Commitments
Loss Contingencies [Line Items]
Weighted average initial maturity	1 year 7 months 6 days

Schedule IV - Mortgage Loans _2

Schedule IV - Mortgage Loans on Real Estate - Schedule of Mortgage Loans on Real Estate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Principal	$ 678,555	$ 590,590	$ 92,863
Carrying Value	669,929	570,780	$ 91,879
Office
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	252,796	269,865
Lab
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	0	13,398
Retail
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	109,248	88,724
Multifamily
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	197,229	106,002
Industrial
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	110,656	$ 92,791
First Mortgage Bridge Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Principal	678,555
Carrying Value	669,929
First Mortgage Bridge Loans | Office | Dallas, TX
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	0
Principal	43,450
Carrying Value	$ 39,314
First Mortgage Bridge Loans | Office | Dallas, TX | LIBOR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.25%
First Mortgage Bridge Loans | Office | Downers Grove, IL
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	$ 0
Principal	29,500
Carrying Value	$ 29,528
First Mortgage Bridge Loans | Office | Downers Grove, IL | LIBOR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	4.25%
First Mortgage Bridge Loans | Office | St. Louis, MO
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	$ 0
Principal	28,866
Carrying Value	$ 28,998
First Mortgage Bridge Loans | Office | St. Louis, MO | LIBOR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.25%
First Mortgage Bridge Loans | Office | Plano, TX
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	$ 0
Principal	26,152
Carrying Value	$ 26,048
First Mortgage Bridge Loans | Office | Plano, TX | LIBOR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	4.75%
First Mortgage Bridge Loans | Office | Carlsbad, CA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	$ 0
Principal	23,825
Carrying Value	$ 23,672
First Mortgage Bridge Loans | Office | Carlsbad, CA | LIBOR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.25%
First Mortgage Bridge Loans | Office | Downers Grove, IL
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	$ 0
Principal	23,530
Carrying Value	$ 23,493
First Mortgage Bridge Loans | Office | Downers Grove, IL | LIBOR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	4.25%
First Mortgage Bridge Loans | Office | Dublin, OH
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	$ 0
Principal	22,507
Carrying Value	$ 22,728
First Mortgage Bridge Loans | Office | Dublin, OH | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.75%
First Mortgage Bridge Loans | Office | Bellevue, WA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	$ 0
Principal	20,000
Carrying Value	$ 19,868
First Mortgage Bridge Loans | Office | Bellevue, WA | LIBOR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.85%
First Mortgage Bridge Loans | Office | Industrial, Aurora, IL
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	$ 0
Principal	16,429
Carrying Value	$ 16,485
First Mortgage Bridge Loans | Office | Industrial, Aurora, IL | LIBOR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	4.35%
First Mortgage Bridge Loans | Office | Yardley, PA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	$ 0
Principal	15,583
Carrying Value	$ 15,643
First Mortgage Bridge Loans | Office | Yardley, PA | LIBOR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	4.58%
First Mortgage Bridge Loans | Office | Westminster, CO
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	$ 0
Principal	14,634
Carrying Value	$ 13,428
First Mortgage Bridge Loans | Office | Westminster, CO | LIBOR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.75%
First Mortgage Bridge Loans | Retail | Brandywine, MD
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	$ 0
Principal	42,200
Carrying Value	$ 41,906
First Mortgage Bridge Loans | Retail | Brandywine, MD | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.85%
First Mortgage Bridge Loans | Retail | West Bloomfield, MI
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	$ 0
Principal	37,453
Carrying Value	$ 37,363
First Mortgage Bridge Loans | Retail | West Bloomfield, MI | LIBOR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.85%
First Mortgage Bridge Loans | Retail | Sandy Springs, GA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	$ 0
Principal	15,017
Carrying Value	$ 14,918
First Mortgage Bridge Loans | Retail | Sandy Springs, GA | LIBOR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.75%
First Mortgage Bridge Loans | Retail | Delray Beach, FL
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	$ 0
Principal	15,149
Carrying Value	$ 15,061
First Mortgage Bridge Loans | Retail | Delray Beach, FL | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	4.25%
First Mortgage Bridge Loans | Multifamily | Olmstead Falls, OH
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	$ 0
Principal	46,083
Carrying Value	$ 46,164
First Mortgage Bridge Loans | Multifamily | Olmstead Falls, OH | LIBOR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	4%
First Mortgage Bridge Loans | Multifamily | Starkville, MS
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	$ 0
Principal	36,787
Carrying Value	$ 36,506
First Mortgage Bridge Loans | Multifamily | Starkville, MS | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	4%
First Mortgage Bridge Loans | Multifamily | Farmington Hills, MI
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	$ 0
Principal	28,691
Carrying Value	$ 28,746
First Mortgage Bridge Loans | Multifamily | Farmington Hills, MI | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.15%
First Mortgage Bridge Loans | Multifamily | Las Vegas, NV
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	$ 0
Principal	24,223
Carrying Value	$ 24,035
First Mortgage Bridge Loans | Multifamily | Las Vegas, NV | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.30%
First Mortgage Bridge Loans | Multifamily | Portland, OR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	$ 0
Principal	19,687
Carrying Value	$ 19,611
First Mortgage Bridge Loans | Multifamily | Portland, OR | LIBOR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.57%
First Mortgage Bridge Loans | Multifamily | Ames, IA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	$ 0
Principal	17,820
Carrying Value	$ 17,704
First Mortgage Bridge Loans | Multifamily | Ames, IA | LIBOR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.80%
First Mortgage Bridge Loans | Multifamily | Portland, OR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	$ 0
Principal	13,400
Carrying Value	$ 12,183
First Mortgage Bridge Loans | Multifamily | Portland, OR | LIBOR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.57%
First Mortgage Bridge Loans | Multifamily | Seattle, WA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	$ 0
Principal	12,354
Carrying Value	$ 12,282
First Mortgage Bridge Loans | Multifamily | Seattle, WA | LIBOR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.55%
First Mortgage Bridge Loans | Industrial | Passiac, NJ
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	$ 0
Principal	38,440
Carrying Value	$ 38,010
First Mortgage Bridge Loans | Industrial | Passiac, NJ | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.85%
First Mortgage Bridge Loans | Industrial | Summerville, SC
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	$ 0
Principal	35,000
Carrying Value	$ 34,769
First Mortgage Bridge Loans | Industrial | Summerville, SC | LIBOR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.50%
First Mortgage Bridge Loans | Industrial | Fontana, CA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	$ 0
Principal	22,000
Carrying Value	$ 21,758
First Mortgage Bridge Loans | Industrial | Fontana, CA | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.75%
First Mortgage Bridge Loans | Industrial | Allentown, PA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	$ 0
Principal	9,775
Carrying Value	$ 9,708
First Mortgage Bridge Loans | Industrial | Allentown, PA | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.50%

Schedule IV - Mortgage Loans _3

Schedule IV - Mortgage Loans on Real Estate - Reconciliation of Mortgage Loans on Real Estate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Loan Activities
Carrying value, beginning balance	$ 570,780	$ 91,879
Additions during the year:
Originations	203,244	347,366
Loans acquired in the Merger		205,593
Additional funding	17,310	4,710
Purchase discount accretion	10,689	18,932
Net amortization of deferred fees	3,780	1,835
Deductions during the year:
Repayment of mortgage loans	(133,568)	(59,197)
Deferred fees	(2,306)	(3,895)
Purchase discount on loans acquired in the Merger		(36,443)
Carrying value, ending balance	$ 669,929	$ 570,780