Seven Hills Realty Trust (SEVN) 10-K 20 Feb 24 2023 FY Annual report Financial data

Cover

Cover - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Feb. 15, 2024	Jun. 30, 2023
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2023
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
Document Financial Statement Error Correction [Flag]	false
Entity Shell Company	false
Entity Public Float			$ 129.4
Entity Common Stock, Shares Outstanding		14,810,739
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 2024 Annual Meeting of Shareholders to be filed with the Securities and Exchange Commission within 120 days after the fiscal year ended December 31, 2023.
Entity Central Index Key	0001452477
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY

Audit Information

Audit Information	12 Months Ended
	Dec. 31, 2023
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, 2023	Dec. 31, 2022
ASSETS
Cash and cash equivalents	$ 87,855	$ 71,067
Loans held for investment	626,462	669,929
Allowance for credit losses	(4,376)	0
Loans held for investment, net	622,086	669,929
Real estate owned, net	11,278	0
Acquired real estate leases, net	4,137	0
Accrued interest receivable	3,632	3,354
Prepaid expenses and other assets, net	2,537	2,497
Total assets	731,525	746,847
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable, accrued liabilities and other liabilities	3,808	1,903
Secured financing facilities, net	454,422	471,521
Due to related persons	2,047	1,844
Total liabilities	460,277	475,268
Commitments and contingencies
Shareholders' equity:
Common shares of beneficial interest, $0.001 par value per share; 25,000,000 shares authorized; 14,811,410 and 14,709,165 shares issued and outstanding, respectively	15	15
Additional paid in capital	239,443	238,505
Cumulative net income	71,660	52,290
Cumulative distributions	(39,870)	(19,231)
Total shareholders' equity	271,248	271,579
Total liabilities and shareholders' equity	$ 731,525	$ 746,847

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Common shares, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	25,000,000	25,000,000
Common shares issued (in shares)	14,811,410	14,709,165
Common shares outstanding (in shares)	14,811,410	14,709,165

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
INCOME FROM INVESTMENTS:
Interest and related income	$ 66,337	$ 45,303
Purchase discount accretion	4,128	10,689
Less: interest and related expenses	(33,518)	(17,630)
Income from loan investments, net	36,947	38,362
Revenue from real estate owned	1,288	0
Total revenue	38,235	38,362
OTHER EXPENSES:
Base management fees	4,303	4,260
Incentive fees	968	0
General and administrative expenses	3,947	3,837
Reimbursement of shared services expenses	2,596	2,475
Reversal of credit losses	(799)	0
Expenses from real estate owned	1,293	0
Other transaction related costs	0	37
Total other expenses	12,308	10,609
Income before income taxes	25,927	27,753
Income tax benefit (expense)	38	(113)
Net income	$ 25,965	$ 27,640
Weighted average common shares outstanding- basic (in shares)	14,625	14,540
Weighted average common shares outstanding - diluted (in shares)	14,625	14,540
Net income per common share, basic (in dollars per share)	$ 1.76	$ 1.89
Net income per common share, diluted (in dollars per share)	$ 1.76	$ 1.89

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Common Shares	Additional Paid In Capital	Cumulative Net Income	Cumulative Net Income Cumulative Effect, Period of Adoption, Adjustment	Cumulative Distributions
Beginning balance (in shares) at Dec. 31, 2021			14,597,000
Beginning 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	14,709,165		14,709,000
Ending balance at Dec. 31, 2022	$ 271,579	$ (6,595)	$ 15	238,505	52,290	$ (6,595)	(19,231)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible List]	Accounting Standards Update 2016-13
Share grants (in shares)			122,000
Share grants	$ 1,124			1,124
Share repurchases (in shares)	(17,421)		(17,000)
Share repurchases	$ (183)			(183)
Share forfeitures (in shares)			(3,000)
Share forfeitures	(3)			(3)
Net income	25,965				25,965
Distributions	$ (20,639)						(20,639)
Ending balance (in shares) at Dec. 31, 2023	14,811,410		14,811,000
Ending balance at Dec. 31, 2023	$ 271,248		$ 15	$ 239,443	$ 71,660		$ (39,870)

CONSOLIDATED STATEMENT OF CASH

CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 25,965	$ 27,640
Adjustments to reconcile net income to net cash provided by operating activities:
Accretion of purchase discount	(4,128)	(10,689)
Reversal of credit losses	(799)	0
Amortization of loan origination and exit fees	(3,333)	(3,780)
Amortization of deferred financing costs	1,405	1,033
Straight line rental income	(647)	0
Depreciation and amortization	604	0
Share based compensation	1,121	1,018
Changes in operating assets and liabilities:
Accrued interest receivable	(498)	(1,921)
Prepaid expenses and other assets	630	(1,625)
Accounts payable, accrued liabilities and other liabilities	(253)	342
Due to related persons	203	733
Net cash provided by operating activities	20,270	12,751
CASH FLOWS FROM INVESTING ACTIVITIES:
Origination of loans held for investment	(131,679)	(200,938)
Additional funding of loans held for investment	(5,416)	(16,697)
Repayment of loans held for investment	172,283	133,568
Cash assumed from transfer of loans held for investment to real estate owned	1,742	0
Real estate owned improvements	(1,086)	0
Net cash provided by (used in) investing activities	35,844	(84,067)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from secured financing facilities	123,208	284,867
Repayments under secured financing facilities	(141,009)	(152,121)
Payments of deferred financing costs	(703)	(1,885)
Repurchase of common shares	(183)	(137)
Distributions	(20,639)	(14,636)
Net cash (used in) provided by financing activities	(39,326)	116,088
Increase in cash and cash equivalents	16,788	44,772
Cash and cash equivalents at beginning of period	71,067	26,295
Cash and cash equivalents at end of period	87,855	71,067
SUPPLEMENTAL DISCLOSURES:
Interest paid	32,079	15,710
Income taxes paid	135	134
NON-CASH INVESTING ACTIVITIES
Transfer of loans held for investment to real estate owned	$ 14,800	$ 0

Organization

Organization	12 Months Ended
	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	OrganizationSeven 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.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2023
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 our allowance for credit losses and 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 and Cash Equivalents. We consider highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. Secured Financing Agreements. Loans financed through our Secured Financing Agreements (as defined in Note 5) 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 determined to be collateral dependent. Loans that we have a plan to sell or liquidate are held at the lower of cost or fair value less cost to sell. Allowance for Credit Losses. On January 1, 2023, we adopted 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. ASU No. 2016-13 is applicable to financial assets measured at amortized cost and off-balance sheet credit exposures, such as unfunded loan commitments. The allowance for credit losses required under ASU No. 2016-13 is a valuation account that is deducted from the related loans’ amortized cost basis in our consolidated balance sheets. Our loans typically include commitments to fund incremental proceeds to borrowers over the life of the loan; these future funding commitments are also subject to the CECL model. The allowance for credit losses related to unfunded loan commitments is included in accounts payable, accrued liabilities and other liabilities in our consolidated balance sheets. Given the lack of historical loss data related to our loan portfolio, we 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, or CMBS, and commercial real estate, or CRE, loans since 1998. We estimate the allowance for credit losses for our loan portfolio, including unfunded loan commitments, at the individual loan level. Significant inputs to the model include certain loan specific data, such as loan to value, or LTV, property type, geographic location, occupancy, vintage year, remaining loan term, net operating income, expected timing and amounts of future loan fundings, and macroeconomic forecast assumptions, including the performance of CRE assets, unemployment rates, interest rates and other factors. We utilize the model to estimate credit losses over a reasonable and supportable economic forecast period, followed by a straight-line reversion period to average historical losses. Average historical losses are established using a population of third party historical loss data that approximates our portfolio as of the measurement date. We evaluate the estimated allowance for each of our loans individually and we consider our internal loan risk rating as the primary credit quality indicator underlying our assessment. If a loan is determined to be collateral dependent (because the repayment of the loan is expected to be provided substantially through the operation or sale of the underlying collateral property) and the borrower is experiencing financial difficulties, but foreclosure is not probable, we may elect to apply a practical expedient to determine the loan's allowance for credit losses by comparing the collateral's fair value, less costs to sell, if applicable, to the amortized cost basis of the loan. For collateral-dependent loans for which foreclosure is probable, the related allowance for credit losses is determined using the fair value, less costs to sell, if applicable, of the collateral compared to the loan's amortized cost. Upon adoption of ASU No. 2016-13 using the modified retrospective transition method and, based on our loan portfolio, the then current economic environment and expectations for future conditions, we recorded a cumulative-effect adjustment reducing our cumulative net income in our consolidated balance sheets by $6,595, establishing an allowance for credit losses of $4,893 with respect to our then outstanding loans held for investment and increasing accounts payable, accrued liabilities and other liabilities by $1,702 with respect to our then unfunded loan commitments. No reserve for loan losses or allowance for credit losses was recognized within our consolidated financial statements prior to our adoption of ASU No. 2016-13. Concurrent with our adoption of ASU No. 2016-13, on January 1, 2023, we adopted 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 adopted ASU No. 2016-13. Instead, an entity must determine whether a modification results in a new loan or continuation of an existing loan under Accounting Standards Codification, or ASC, 310, Receivables (Topic 310). If a borrower is experiencing financial difficulty, enhanced disclosures are required. ASU No. 2022-02 also requires disclosure of current period gross write offs by year of origination. The adoption of ASU No. 2022-02 using the prospective transition method did not have a material impact on our consolidated financial statements. See Note 3 to our Consolidated Financial Statements included in Part IV, Item 15 of this 2023 Annual Report for further information regarding loan modifications. We evaluate the credit quality of each of our loans 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 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” 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 3 for further information regarding our allowance for credit losses and our loan portfolio’s assessment under our internal risk rating policy. Real Estate Owned. Real estate owned is property acquired in full or partial settlement of loan obligations generally through foreclosure or by deed in lieu of foreclosure. Upon acquisition, we allocate the fair value of the real estate owned in accordance with ASC 805, Business Combinations. Upon acquisition, real estate owned is recognized at the lesser of the fair value of the property and the amortized cost of the loan secured by the property at the time of acquisition. We allocate the purchase price to land, building and improvements, and intangibles based on determinations of the relative fair values of these assets assuming the properties are vacant. The fair value of the property is determined using Level III inputs and standard industry valuation methods, including discounted cash flow analyses that are based on a number of factors, including capitalization rates and discount rates, among others, and sales comparisons. If the amortized cost of the loan exceeds the fair value of the property the difference is recorded through the allowance for credit losses as a write off. Conversely, if the fair value of the property exceeds the amortized cost of the loan, the difference is recorded through the allowance for credit losses as a recovery, with any excess recorded as a gain. Any related shortfall or excess of previously established allowances for credit losses is recognized in the consolidated statements of operations as a provision for or reversal of credit losses, respectively. Subsequent to acquisition, costs incurred related to improvements to the property are capitalized and depreciated over their estimated useful lives and costs related to the operation of the property are expensed as incurred. We recognize depreciation on a straight line basis over estimated useful lives generally ranging from 7 to 40 years. The following is a summary of real estate owned presented in our consolidated balance sheets: December 31, 2023 Land $ 2,880 Building and improvements 7,349 Tenant improvements 1,164 Total real estate owned 11,393 Less: accumulated depreciation (115) Real estate owned, net $ 11,278 Depreciation expense related to real estate owned for the year ended December 31, 2023 was $136 and is included in expenses from real estate owned. We did not record depreciation expense related to real estate owned during the year ended December 31, 2022. We allocate a portion of the purchase price to acquired in place leases and tenant relationships based upon market estimates to lease up the property based on the leases in place at the time of acquisition. We allocate this aggregate value between acquired in place lease values and tenant relationships based on our evaluation of the specific characteristics of each tenant’s lease. We amortize the value of acquired in place leases (included in acquired real estate leases, net in our consolidated balance sheets) over the terms of the associated leases. Such amortization, which is included in expenses from real estate owned in our consolidated income statements, amounted to $458 for the year ended December 31, 2023. We did not record any such amortization during the year ended December 31, 2022. As of December 31, 2023, our acquired real estate lease obligations were as follows: December 31, 2023 Acquired real estate leases $ 4,595 Less: accumulated amortization (458) Acquired real estate leases, net $ 4,137 As of December 31, 2023, the weighted average amortization periods for acquired in place lease values was 7.4 years. Future amortization of acquired in place lease values is estimated to be $771 in 2024, $594 in 2025, $493 in 2026, $493 in 2027, $466 in 2028 and $1,320 thereafter. We regularly evaluate real estate owned for indicators of impairment. Impairment indicators may include declining tenant occupancy, lack of progress leasing vacant space, tenant bankruptcies, low long term prospects for improvement in property performance, weak or declining tenant profitability, cash flow or liquidity, our decision to dispose of an asset before the end of its estimated useful life and legislative, market or industry changes that could permanently reduce the value of a property. If there is an indication that the carrying value of an asset is not recoverable, we estimate the projected undiscounted cash flows to determine if an impairment loss should be recognized. The future net undiscounted cash flows are subjective and are based in part on assumptions regarding hold periods, market rents and terminal capitalization rates. We determine the amount of any impairment loss by comparing the carrying value to estimated fair value. We estimate fair value through an evaluation of recent financial performance and projected discounted cash flows using standard industry valuation methods. 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, 2023. 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 through our provision for credit losses. Revenue from real estate owned represents rental income from operating leases with tenants and is recognized on a straight line basis over the lease term. New Accounting Pronouncements. On November 27, 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , or ASU No. 2023-07, which requires public entities to: i) provide disclosures of significant segment expenses and other segment items if they are regularly provided to the Chief Operating Decision Maker, or the CODM, and included in each reported measure of segment profit or loss; ii) provide all annual disclosures about a reportable segment’s profit or loss and assets currently required by ASC 280, Segment Reporting , or ASC 280, in interim periods; and iii) disclose the CODM’s title and position, as well as an explanation of how the CODM uses the reported measures and other disclosures. Public entities with a single reportable segment must apply all the disclosure requirements of ASU No. 2023-07, as well as all the existing segment disclosures under ASC 280. The amendments in ASU No. 2023-07 are incremental to the requirements in ASC 280 and do not change how a public entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. ASU No. 2023-07 should be applied retrospectively to all prior periods presented in the financial statements and is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating the impact ASU No. 2023-07 will have on our consolidated financial statements and disclosures.

Loans Held for Investment

Loans Held for Investment	12 Months Ended
	Dec. 31, 2023
Receivables [Abstract]
Loans Held for Investment	Loans Held for Investment, net We originate first mortgage loans secured by middle market and transitional CRE, which are generally to be held as long term investments. The table below provides overall statistics for our loan portfolio as of December 31, 2023 and December 31, 2022: As of December 31, 2023 2022 Number of loans 24 27 Total loan commitments $ 670,293 $ 727,562 Unfunded loan commitments (1) $ 40,401 $ 49,007 Principal balance $ 629,892 $ 678,555 Carrying value $ 622,086 $ 669,929 Weighted average coupon rate 9.19 % 8.07 % Weighted average all in yield (2) 9.64 % 8.57 % Weighted average floor 1.36 % 0.62 % Weighted average maximum maturity (years) (3) 3.0 3.3 Weighted average risk rating 3.0 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 2022 and 2023: Principal Balance Deferred Fees and Other Items Amortized Cost 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 Additional funding 5,650 (14) 5,636 Originations 133,300 (1,621) 131,679 Repayments (171,748) (535) (172,283) Transfer to real estate owned (15,865) (95) (15,960) Net amortization of deferred fees — 3,333 3,333 Purchase discount accretion — 4,128 4,128 Balance at December 31, 2023 $ 629,892 $ (3,430) $ 626,462 The tables below detail the property type and geographic location of the properties securing the loans in our portfolio as of December 31, 2023 and December 31, 2022: As of December 31, 2023 2022 Property Type Number of Loans Amortized Cost Percentage of Value Number of Loans Amortized Cost Percentage of Value Multifamily 7 $ 207,734 33 % 8 $ 197,229 29 % Office (1) 7 181,268 29 % 11 252,796 38 % Industrial (1) 5 118,707 19 % 4 110,656 17 % Retail 3 72,962 12 % 4 109,248 16 % Hotel 2 45,791 7 % — — — % 24 $ 626,462 100 % 27 $ 669,929 100 % (1) As of December 31, 2022, one loan investment secured by a mixed use property consisting of office space and an industrial warehouse in Aurora, IL was classified as office for the purpose of counting the number of loans in our portfolio because the majority of the square footage of the property consisted of office space. The amortized cost of this loan investment was reflected in office and industrial based on the fair value of the building at the time of origination relative to the total fair value of the property. During the year ended December 31, 2023, our loan investment in Aurora, IL was repaid. As of December 31, 2023 2022 Geographic Location Number of Loans Amortized Cost Percentage of Value Number of Loans Amortized Cost Percentage of Value South 8 $ 222,477 36 % 6 $ 166,616 25 % West 9 185,294 30 % 8 146,837 22 % Midwest 4 128,876 20 % 9 251,208 37 % East 3 89,815 14 % 4 105,268 16 % 24 $ 626,462 100 % 27 $ 669,929 100 % Credit Quality Information We evaluate the credit quality of each of our loans 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. As of December 31, 2023 and 2022, the amortized cost of our loan portfolio within each internal risk rating by year of origination was as follows: December 31, 2023 Risk Rating Number of Loans Percentage of Portfolio 2023 2022 2021 Prior Total 1 — — % $ — $ — $ — $ — $ — 2 3 15 % 37,323 42,089 15,435 — 94,847 3 18 71 % 94,881 167,491 144,456 38,548 445,376 4 3 14 % — — 86,239 — 86,239 5 — — % — — — — — 24 100 % $ 132,204 $ 209,580 $ 246,130 $ 38,548 $ 626,462 December 31, 2022 Risk Rating Number of Loans Percentage of Portfolio 2022 2021 2020 Prior Total 1 1 1 % $ — $ — $ 9,708 $ — $ 9,708 2 6 20 % — 65,902 68,740 — 134,642 3 17 65 % 169,516 235,602 — 28,998 434,116 4 3 14 % 36,506 39,314 — 15,643 91,463 5 — — % — — — — — 27 100 % $ 206,022 $ 340,818 $ 78,448 $ 44,641 $ 669,929 The borrower of our loan secured by an office property located in Yardley, PA did not pay its debt service obligations due in May 2023, resulting in an event of default. In June 2023, we assumed legal title to the property through a deed in lieu of foreclosure. See Note 4 for further information. The table below present the change to the allowance for credit losses during the year ended December 31, 2023: Loans Held for Investment, net Unfunded Loan Commitments Total Balance at December 31, 2022 $ — $ — $ — Cumulative-effect adjustment upon adoption of ASU No. 2016-13 4,893 1,702 6,595 Reversal of credit losses (549) (250) (799) Write offs (1) (708) — (708) Recoveries 740 — 740 Balance at December 31, 2023 $ 4,376 $ 1,452 $ 5,828 (1) Write offs for the year ended December 31, 2023 relate to our loan secured by an office property located in Yardley, PA that was originated in 2019. We assumed legal title to the property through a deed in lieu of foreclosure in June 2023. See Note 4 for further information. We estimate credit losses over a reasonable and supportable forecast period of 12 months, followed by a straight-line reversion period of 12 months back to average historical losses. The decrease in the allowance for credit losses during the year ended December 31, 2023 compared to the January 1, 2023 cumulative-effect adjustment upon adoption of ASU No. 2016-13, is primarily attributable to a recovery in our previously recorded allowance for credit losses related to the loan transferred to real estate owned in June 2023, partially offset by unfavorable changes in CRE pricing forecasts. 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. Loan modifications are evaluated to determine whether a modification results in a new loan or a continuation of an existing loan under ASC 310. In June 2023, we amended the agreement governing our loan secured by an office property in St. Louis, MO. As part of this amendment, the borrower repaid $5,000 of the outstanding principal amount and the maturity date was extended by six months to December 19, 2023. We accounted for the amendment as a modification to the existing loan because the changes to the terms were determined to be minor. In October 2023, the borrower repaid the full outstanding principal amount on this loan. In August 2023, we amended the agreement governing our loan secured by an office property in Dublin, OH. As part of this amendment, the borrower repaid $2,000 of the outstanding principal amount and the maturity date was extended by one year to August 16, 2024. We accounted for the amendment as a modification to the existing loan because the changes to the terms were determined to be minor. In October 2023, the borrower repaid the full outstanding principal amount on this loan. There were no other modifications to our loan portfolio for borrowers experiencing financial difficulties during the year ended December 31, 2023. We have elected to exclude accrued interest receivable from amortized cost and not to measure an allowance for credit losses on accrued interest receivable. Accrued interest receivables are generally written off when payments are 120 days past due. Such amounts are reversed against interest income and no further interest will be recorded until it is collected. During the year ended December 31, 2023, we reversed $88 of accrued interest related to the loan transferred to real estate owned in June 2023.

Real Estate Owned

Real Estate Owned	12 Months Ended
	Dec. 31, 2023
Banking and Thrift, Interest [Abstract]
Real Estate Owned	Real Estate Owned In June 2023, we assumed legal title to an office property located in Yardley, PA through a deed in lieu of foreclosure. As of June 30, 2023, the property met the held for sale criteria required by ASC 360 and was classified as held for sale. The amortized cost basis of $15,960 of the related loan exceeded the fair value of the property, including cash assumed of $1,742 and net liabilities assumed of $550, less estimated costs to sell of $740, by $708. The previously established allowance for credit losses for the related loan was $1,335, resulting in a decrease to our provision for credit losses of $627 recorded in our consolidated statements of operations during the six months ended June 30, 2023. Upon assumption of legal title of the property, we also assumed $2,258 of outstanding commitments for lease related costs pursuant to previously executed tenant leases. As of September 30, 2023, although there was not a change to the plan of sale, the property did not meet the held for sale criteria required by ASC 360 and was classified as held for investment. As a result, we recorded a reversal of credit losses of $740 for estimated costs to sell in our consolidated statements of operations during the three months ended September 30, 2023. We accounted for the acquisition as an asset acquisition and allocated the fair value of the assumed assets and liabilities on the acquisition date as follows: Acquisition Date Fair Value Land Buildings and Improvements Acquired Real Estate Leases June 2023 $ 14,800 $ 2,880 $ 7,325 $ 4,595 Other assets related to real estate owned of $1,352, including $647 of straight line rent receivables, are included in prepaid expenses and other assets, net, in our consolidated balance sheets at December 31, 2023. Accrued expenses and other liabilities related to real estate owned of $517 are included in accounts payable, accrued liabilities and other liabilities in our consolidated balance sheets at December 31, 2023. There were no other assets or accrued expenses and other liabilities related to real estate owned at December 31, 2022. We increased revenue from real estate owned to record revenue on a straight line basis by $647 for the year ended December 31, 2023. Expenses from real estate owned represents costs related to the acquisition of the property, costs to operate the property and depreciation and amortization expense. The following operating lease maturity analysis presents the future contractual lease payments to be received by us through 2034 as of December 31, 2023: Year Amount 2024 $ 1,743 2025 1,925 2026 1,824 2027 1,892 2028 1,868 Thereafter 5,957 Total $ 15,209

Secured Financing Agreements

Secured Financing Agreements	12 Months Ended
	Dec. 31, 2023
Debt Disclosure [Abstract]
Secured Financing Agreements	Secured Financing Agreements UBS Master Repurchase Facility We are a party to a 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. In July 2023, we amended and restated our master repurchase agreement with UBS, or the UBS Master Repurchase Agreement. The amended and restated UBS Master Repurchase Agreement made certain changes to the agreement and related fee letter, including extending the stated maturity date to February 18, 2025. In August 2023, we amended the related fee letter to increase the maximum amount of available advancements under the UBS Master Repurchase Facility to $205,000. 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). 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 the one month Secured Overnight Financing Rate, or 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%. 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. Citibank Master Repurchase Facility We are a party to a master repurchase agreement with Citibank NA, or Citibank, or our Citibank Master Repurchase Agreement, for a facility, or our Citibank Master Repurchase Facility, pursuant to which we may sell to Citibank, and later repurchase, commercial mortgage loans, which are referred to as purchased assets. The maximum amount of available advancements under our Citibank Master Repurchase Facility is $215,000 and the stated maturity date is 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 SOFR 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. In connection with our Citibank Master Repurchase Agreement, we entered into a guaranty, or 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. BMO Facility We are a party to a 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, up to the maximum principal amount of $150,000, 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. 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. Wells Fargo Master Repurchase Facility We are a party to 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. 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, 2023, we were in compliance with the covenants and other terms of the agreements that govern our Secured Financing Facilities. The table below summarizes our Secured Financing Facilities as of December 31, 2023 and 2022: Debt Obligation Weighted Average Collateral Maximum Facility Size Principal Balance Carrying Value Coupon Rate (1) Remaining Maturity (years) (2) Principal Balance December 31, 2023: Citibank Master Repurchase Facility $ 215,000 $ 91,115 $ 90,811 7.47 % 0.7 $ 142,465 UBS Master Repurchase Facility 205,000 181,381 181,162 7.72 % 0.8 241,887 BMO Facility 150,000 87,767 87,451 7.29 % 1.3 118,471 Wells Fargo Master Repurchase Facility 125,000 95,551 94,998 7.44 % 1.1 127,069 Total/weighted average $ 695,000 $ 455,814 $ 454,422 7.53 % 0.9 $ 629,892 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 (1) The weighted average coupon rate is determined using SOFR plus a spread ranging from 1.83% to 2.90%, as applicable, for the respective borrowings under our Secured Financing Facilities as of the applicable date. (2) The weighted average remaining maturity of our Master Repurchase Facilities is determined using the earlier of the underlying loan investment maturity date and the respective repurchase agreement maturity date. As of December 31, 2023, our Citibank Master Repurchase Facility, UBS Master Repurchase Facility and Wells Fargo Master Repurchase Facility mature on March 15, 2025, February 18, 2025 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, 2023, our outstanding borrowings under our Secured Financing Facilities had the following remaining maturities: Maturity Year Principal Payments 2024 $ 223,745 2025 232,069 2026 and thereafter — $ 455,814

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The carrying values of cash and cash equivalents 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 information regarding our financial assets and liabilities not carried at fair value in our consolidated balance sheets: As of December 31, 2023 2022 Carrying Value Fair Value Carrying Value Fair Value Financial assets Loans held for investment $ 622,086 $ 626,079 $ 669,929 $ 679,911 Financial liabilities Secured Financing Facilities $ 454,422 $ 454,620 $ 471,521 $ 471,362

Shareholders' Equity

Shareholders' Equity	12 Months Ended
	Dec. 31, 2023
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, 2023 and 2022, we awarded to our officers and certain other employees of Tremont and of RMR annual share awards of 80,000 and 85,000 of our common shares, respectively, valued at $876 and $859, in aggregate, respectively. In accordance with our Trustee compensation arrangements, during the years ended December 31, 2023 and 2022, we awarded each of our then Trustees 6,000 of our common shares valued at $387 and $448, respectively, as part of their annual compensation. The values of the share awards are based upon the closing price of our common shares on The Nasdaq Stock Market LLC, or Nasdaq, on the 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, 2023 and 2022 is as follows: 2023 2022 Number of Weighted Average Grant Number of Weighted Average Grant Unvested shares, beginning of year 129,680 $ 10.24 91,584 $ 10.39 Shares granted 122,000 $ 10.35 127,000 $ 10.29 Shares forfeited (2,334) $ 10.19 (1,016) $ 10.39 Shares vested (112,925) $ 9.96 (87,888) $ 10.45 Unvested shares, end of year 136,421 $ 10.57 129,680 $ 10.24 The 136,421 unvested shares as of December 31, 2023 are scheduled to vest as follows: 46,722 shares in 2024, 43,300 shares in 2025, 30,400 shares in 2026 and 15,999 shares in 2027. As of December 31, 2023, the estimated future compensation expense for the unvested shares was $1,303. The weighted average period over which the compensation expense will be recorded is approximately 22 months. During the years ended December 31, 2023 and 2022, we recorded $1,121 and $1,018, respectively, of compensation expense related to the 2021 Plan. At December 31, 2023, 148,829 of our common shares remained available for issuance under the 2021 Plan. Common Share Purchases During the years ended December 31, 2023 and 2022, we purchased 17,421 and 13,898 of our common shares, respectively, from certain of our current and former officers and 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, 2023 and 2022 was $183 and $137, respectively. Distributions During the years ended December 31, 2023 and 2022, we declared and paid regular quarterly distributions to common shareholders, using cash on hand, as follows: Characterization of Distributions Year Annual Per Share Distribution Total Distribution Return of Capital Ordinary Income Qualified Dividend 2023 $ 1.40 $ 20,639 — % 100 % — % 2022 $ 1.00 $ 14,636 — % 100 % — % On January 11, 2024, we declared a quarterly distribution of $0.35 per common share, or $5,184, to shareholders of record on January 22, 2024, and we paid this distribution on February 15, 2024 using cash on hand.

Management Agreement with Tremo

Management Agreement with Tremont	12 Months Ended
	Dec. 31, 2023
Related Party Transactions [Abstract]
Management Agreement with Tremont	Management Agreement with Tremont We have no employees. T he personnel and various services we require to operate our business are provided to us, pursuant to a management agreement with Tremont, which provides for the day to day management of our operations by Tremont, subject to the oversight and direction of our Board of Trustees. 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 “Core 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 our merger with Tremont Mortgage Trust, or TRMT, in 2021, or 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 Core 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 Core 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, 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, “Core 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 of real estate owned and related intangible assets (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. Core 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 Core 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 Core Earnings for purposes of calculating incentive fees, unless such distribution is otherwise already excluded from Core Earnings. Equity and Core 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. Term. The initial term of our management agreement ended on December 31, 2023, and the agreement automatically renewed for a successive one year term on January 1, 2024, and will renew for successive one year terms 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 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. 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.

Related Person Transactions

Related Person Transactions	12 Months Ended
	Dec. 31, 2023
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 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 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 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 8 for further information regarding our management agreement. 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, 2023, Tremont owned 1,708,058 of our common shares, or approximately 11.5% of our outstanding common shares, and Mr. Portnoy beneficially owned (including through Tremont and ABP Trust) 13.5% 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 8 for further information regarding this shared services arrangement. Share Awards to our Officers and Employees of Tremont and RMR . As described further in Note 7, 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 7 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. Property Management Agreement with RMR . We entered into a property management agreement with RMR in July 2023 with respect to real estate owned in Yardley, PA. Pursuant to this agreement, RMR provides property management services and we pay management fees equal to 3.0% of gross collected rents. Also under the terms of this property management agreement, we pay RMR additional fees for construction supervision services equal to 5.0% of the cost of such construction. Either we or RMR may terminate this agreement upon 30 days' prior notice. No termination fee would be payable as a result of terminating the agreement. We recognized property management and construction supervision fees of $17 during the year ended December 31, 2023, related to real estate owned.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes

Weighted Average Common Shares

Weighted Average Common Shares	12 Months Ended
	Dec. 31, 2023
Earnings Per Share [Abstract]
Weighted Average Common Shares	Weighted Average Common Shares 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. Unvested share awards are considered participating securities 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 net income per common share - basic and diluted is as follows (amounts in thousands, except per share data): Year Ended December 31, 2023 2022 Numerators: Net income $ 25,965 $ 27,640 Income attributable to unvested share awards (219) (193) Net income used in calculating net income per common share - basic and diluted $ 25,746 $ 27,447 Denominators: Weighted average common shares outstanding - basic and diluted 14,625 14,540 Net income per common share - basic and diluted $ 1.76 $ 1.89

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies As of December 31, 2023, we had unfunded loan commitments of $40,401 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 1.1 years as of December 31, 2023. See Note 3 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, 2023
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 S + 4.00% 01/28/2024 01/28/2026 I/O — $ 46,083 $ 46,471 2 Office, Dallas, TX S + 3.25% 08/25/2024 08/25/2026 I/O — 43,510 41,949 3 Industrial, Passaic, NJ S + 3.85% 09/08/2025 09/08/2027 I/O — 38,985 38,723 4 Retail, Brandywine, MD S + 3.85% 03/29/2025 03/29/2027 I/O — 42,200 42,089 5 Multifamily, Auburn, AL S + 3.25% 11/11/2025 11/11/2026 I/O — 37,500 37,323 6 Multifamily, Starkville, MS S + 4.00% 03/22/2025 03/22/2027 I/O — 36,919 36,767 7 Multifamily, Farmington Hills, MI S + 3.15% 05/24/2025 05/24/2027 I/O — 29,121 29,287 8 Office, Downers Grove, IL S + 4.25% 11/25/2024 11/25/2024 I/O — 29,500 29,544 9 Hotel, Anaheim, CA S + 4.00% 11/29/2025 11/29/2028 I/O — 29,000 28,711 10 Multifamily, Las Vegas, NV S + 3.30% 06/10/2025 06/10/2027 I/O — 25,185 25,196 11 Industrial, Fountain Inn, SC S + 4.25% 07/13/2025 07/13/2026 I/O — 24,300 24,084 12 Office, Plano, TX S + 4.75% 07/01/2024 07/01/2026 I/O — 26,463 26,475 13 Industrial, Fayetteville, GA S + 3.35% 10/06/2026 10/06/2028 I/O — 25,250 25,007 14 Office, Carlsbad, CA S + 3.25% 10/27/2024 10/27/2026 I/O — 24,417 24,349 15 Industrial, Fontana, CA S + 3.75% 11/18/2024 11/18/2026 I/O — 22,000 21,891 16 Office, Downers Grove, IL S + 4.25% 12/09/2024 12/09/2026 I/O — 23,530 23,574 17 Office, Bellevue, WA S + 3.85% 11/05/2024 11/05/2026 I/O — 20,000 19,941 18 Multifamily, Portland, OR S + 3.57% 07/09/2024 07/09/2026 I/O — 19,688 19,695 19 Hotel, Scottsdale, AZ S + 4.25% 09/27/2026 09/27/2028 I/O — 17,250 17,081 20 Retail, Delray Beach, FL S + 4.25% 03/18/2024 03/18/2026 I/O — 15,602 15,627 21 Retail, Sandy Springs, GA S + 3.75% 09/23/2024 09/23/2026 I/O — 15,287 15,245 22 Office, Westminster, CO S + 3.75% 05/25/2024 05/25/2026 I/O — 15,750 15,435 23 Multifamily, Portland, OR S + 3.57% 07/30/2024 07/30/2026 I/O — 13,400 12,995 24 Industrial, Allentown, PA S + 3.50% 01/24/2024 01/24/2025 I/O — 8,952 9,003 Total $ 629,892 $ 626,462 Less: allowance for credit losses (5) (4,376) Total carrying value including allowance for credit losses $ 622,086 (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, 2023, none of our borrowers were delinquent in payment. (5) For further information regarding our allowance for credit losses, see Note 3 to our Consolidated Financial Statements. Reconciliation of Mortgage Loans on Real Estate: Carrying Value Balance as of January 1, 2022 $ 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 Additions during the year: Originations 133,300 Additional funding 5,636 Purchase discount accretion 4,128 Net amortization of deferred fees 3,333 Decrease in allowance for credit losses 517 Deductions during the year: Repayments (172,283) Transfer to real estate owned (15,960) Deferred fees (1,621) Cumulative effect adjustment upon adoption of ASU No. 2016-13 (4,893) Balance as of December 31, 2023 $ 622,086

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation.
Use of Estimates	Actual results could differ from those estimates. Significant estimates in the accompanying consolidated financial statements include our allowance for credit losses and 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 and Cash Equivalents	Cash and Cash Equivalents. We consider highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents.
Secured Financing Agreements	Secured Financing Agreements. Loans financed through our Secured Financing Agreements (as defined in Note 5) 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 determined to be collateral dependent. Loans that we have a plan to sell or liquidate are held at the lower of cost or fair value less cost to sell.
Allowance for Credit Losses	Allowance for Credit Losses. On January 1, 2023, we adopted 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. ASU No. 2016-13 is applicable to financial assets measured at amortized cost and off-balance sheet credit exposures, such as unfunded loan commitments. The allowance for credit losses required under ASU No. 2016-13 is a valuation account that is deducted from the related loans’ amortized cost basis in our consolidated balance sheets. Our loans typically include commitments to fund incremental proceeds to borrowers over the life of the loan; these future funding commitments are also subject to the CECL model. The allowance for credit losses related to unfunded loan commitments is included in accounts payable, accrued liabilities and other liabilities in our consolidated balance sheets. Given the lack of historical loss data related to our loan portfolio, we 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, or CMBS, and commercial real estate, or CRE, loans since 1998. We estimate the allowance for credit losses for our loan portfolio, including unfunded loan commitments, at the individual loan level. Significant inputs to the model include certain loan specific data, such as loan to value, or LTV, property type, geographic location, occupancy, vintage year, remaining loan term, net operating income, expected timing and amounts of future loan fundings, and macroeconomic forecast assumptions, including the performance of CRE assets, unemployment rates, interest rates and other factors. We utilize the model to estimate credit losses over a reasonable and supportable economic forecast period, followed by a straight-line reversion period to average historical losses. Average historical losses are established using a population of third party historical loss data that approximates our portfolio as of the measurement date. We evaluate the estimated allowance for each of our loans individually and we consider our internal loan risk rating as the primary credit quality indicator underlying our assessment. If a loan is determined to be collateral dependent (because the repayment of the loan is expected to be provided substantially through the operation or sale of the underlying collateral property) and the borrower is experiencing financial difficulties, but foreclosure is not probable, we may elect to apply a practical expedient to determine the loan's allowance for credit losses by comparing the collateral's fair value, less costs to sell, if applicable, to the amortized cost basis of the loan. For collateral-dependent loans for which foreclosure is probable, the related allowance for credit losses is determined using the fair value, less costs to sell, if applicable, of the collateral compared to the loan's amortized cost. Upon adoption of ASU No. 2016-13 using the modified retrospective transition method and, based on our loan portfolio, the then current economic environment and expectations for future conditions, we recorded a cumulative-effect adjustment reducing our cumulative net income in our consolidated balance sheets by $6,595, establishing an allowance for credit losses of $4,893 with respect to our then outstanding loans held for investment and increasing accounts payable, accrued liabilities and other liabilities by $1,702 with respect to our then unfunded loan commitments. No reserve for loan losses or allowance for credit losses was recognized within our consolidated financial statements prior to our adoption of ASU No. 2016-13. Concurrent with our adoption of ASU No. 2016-13, on January 1, 2023, we adopted 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 adopted ASU No. 2016-13. Instead, an entity must determine whether a modification results in a new loan or continuation of an existing loan under Accounting Standards Codification, or ASC, 310, Receivables (Topic 310). If a borrower is experiencing financial difficulty, enhanced disclosures are required. ASU No. 2022-02 also requires disclosure of current period gross write offs by year of origination. The adoption of ASU No. 2022-02 using the prospective transition method did not have a material impact on our consolidated financial statements. See Note 3 to our Consolidated Financial Statements included in Part IV, Item 15 of this 2023 Annual Report for further information regarding loan modifications. We evaluate the credit quality of each of our loans 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 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” 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 3 for further information regarding our allowance for credit losses and our loan portfolio’s assessment under our internal risk rating policy.
Real Estate Owned	Real Estate Owned. Real estate owned is property acquired in full or partial settlement of loan obligations generally through foreclosure or by deed in lieu of foreclosure. Upon acquisition, we allocate the fair value of the real estate owned in accordance with ASC 805, Business Combinations. Upon acquisition, real estate owned is recognized at the lesser of the fair value of the property and the amortized cost of the loan secured by the property at the time of acquisition. We allocate the purchase price to land, building and improvements, and intangibles based on determinations of the relative fair values of these assets assuming the properties are vacant. The fair value of the property is determined using Level III inputs and standard industry valuation methods, including discounted cash flow analyses that are based on a number of factors, including capitalization rates and discount rates, among others, and sales comparisons. If the amortized cost of the loan exceeds the fair value of the property the difference is recorded through the allowance for credit losses as a write off. Conversely, if the fair value of the property exceeds the amortized cost of the loan, the difference is recorded through the allowance for credit losses as a recovery, with any excess recorded as a gain. Any related shortfall or excess of previously established allowances for credit losses is recognized in the consolidated statements of operations as a provision for or reversal of credit losses, respectively. Subsequent to acquisition, costs incurred related to improvements to the property are capitalized and depreciated over their estimated useful lives and costs related to the operation of the property are expensed as incurred. We recognize depreciation on a straight line basis over estimated useful lives generally ranging from 7 to 40 years. The following is a summary of real estate owned presented in our consolidated balance sheets: December 31, 2023 Land $ 2,880 Building and improvements 7,349 Tenant improvements 1,164 Total real estate owned 11,393 Less: accumulated depreciation (115) Real estate owned, net $ 11,278 Depreciation expense related to real estate owned for the year ended December 31, 2023 was $136 and is included in expenses from real estate owned. We did not record depreciation expense related to real estate owned during the year ended December 31, 2022. We allocate a portion of the purchase price to acquired in place leases and tenant relationships based upon market estimates to lease up the property based on the leases in place at the time of acquisition. We allocate this aggregate value between acquired in place lease values and tenant relationships based on our evaluation of the specific characteristics of each tenant’s lease. We amortize the value of acquired in place leases (included in acquired real estate leases, net in our consolidated balance sheets) over the terms of the associated leases. Such amortization, which is included in expenses from real estate owned in our consolidated income statements, amounted to $458 for the year ended December 31, 2023. We did not record any such amortization during the year ended December 31, 2022. As of December 31, 2023, our acquired real estate lease obligations were as follows: December 31, 2023 Acquired real estate leases $ 4,595 Less: accumulated amortization (458) Acquired real estate leases, net $ 4,137 As of December 31, 2023, the weighted average amortization periods for acquired in place lease values was 7.4 years. Future amortization of acquired in place lease values is estimated to be $771 in 2024, $594 in 2025, $493 in 2026, $493 in 2027, $466 in 2028 and $1,320 thereafter. We regularly evaluate real estate owned for indicators of impairment. Impairment indicators may include declining tenant occupancy, lack of progress leasing vacant space, tenant bankruptcies, low long term prospects for improvement in property performance, weak or declining tenant profitability, cash flow or liquidity, our decision to dispose of an asset before the end of its estimated useful life and legislative, market or industry changes that could permanently reduce the value of a property. If there is an indication that the carrying value of an asset is not recoverable, we estimate the projected undiscounted cash flows to determine if an impairment loss should be recognized. The future net undiscounted cash flows are subjective and are based in part on assumptions regarding hold periods, market rents and terminal capitalization rates. We determine the amount of any impairment loss by comparing the carrying value to estimated fair value. We estimate fair value through an evaluation of recent financial performance and projected discounted cash flows using standard industry valuation methods.
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.
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, 2023. 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 through our provision for credit losses.
New Accounting Pronouncements	New Accounting Pronouncements. On November 27, 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , or ASU No. 2023-07, which requires public entities to: i) provide disclosures of significant segment expenses and other segment items if they are regularly provided to the Chief Operating Decision Maker, or the CODM, and included in each reported measure of segment profit or loss; ii) provide all annual disclosures about a reportable segment’s profit or loss and assets currently required by ASC 280, Segment Reporting , or ASC 280, in interim periods; and iii) disclose the CODM’s title and position, as well as an explanation of how the CODM uses the reported measures and other disclosures. Public entities with a single reportable segment must apply all the disclosure requirements of ASU No. 2023-07, as well as all the existing segment disclosures under ASC 280. The amendments in ASU No. 2023-07 are incremental to the requirements in ASC 280 and do not change how a public entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. ASU No. 2023-07 should be applied retrospectively to all prior periods presented in the financial statements and is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating the impact ASU No. 2023-07 will have on our consolidated financial statements and disclosures.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2023
Accounting Policies [Abstract]
Schedule of Real Estate Owned	The following is a summary of real estate owned presented in our consolidated balance sheets: December 31, 2023 Land $ 2,880 Building and improvements 7,349 Tenant improvements 1,164 Total real estate owned 11,393 Less: accumulated depreciation (115) Real estate owned, net $ 11,278 December 31, 2023 Acquired real estate leases $ 4,595 Less: accumulated amortization (458) Acquired real estate leases, net $ 4,137

Loans Held for Investment (Tabl

Loans Held for Investment (Tables)	12 Months Ended
	Dec. 31, 2023
Receivables [Abstract]
Schedule of Loans	The table below provides overall statistics for our loan portfolio as of December 31, 2023 and December 31, 2022: As of December 31, 2023 2022 Number of loans 24 27 Total loan commitments $ 670,293 $ 727,562 Unfunded loan commitments (1) $ 40,401 $ 49,007 Principal balance $ 629,892 $ 678,555 Carrying value $ 622,086 $ 669,929 Weighted average coupon rate 9.19 % 8.07 % Weighted average all in yield (2) 9.64 % 8.57 % Weighted average floor 1.36 % 0.62 % Weighted average maximum maturity (years) (3) 3.0 3.3 Weighted average risk rating 3.0 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 2022 and 2023: Principal Balance Deferred Fees and Other Items Amortized Cost 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 Additional funding 5,650 (14) 5,636 Originations 133,300 (1,621) 131,679 Repayments (171,748) (535) (172,283) Transfer to real estate owned (15,865) (95) (15,960) Net amortization of deferred fees — 3,333 3,333 Purchase discount accretion — 4,128 4,128 Balance at December 31, 2023 $ 629,892 $ (3,430) $ 626,462 The tables below detail the property type and geographic location of the properties securing the loans in our portfolio as of December 31, 2023 and December 31, 2022: As of December 31, 2023 2022 Property Type Number of Loans Amortized Cost Percentage of Value Number of Loans Amortized Cost Percentage of Value Multifamily 7 $ 207,734 33 % 8 $ 197,229 29 % Office (1) 7 181,268 29 % 11 252,796 38 % Industrial (1) 5 118,707 19 % 4 110,656 17 % Retail 3 72,962 12 % 4 109,248 16 % Hotel 2 45,791 7 % — — — % 24 $ 626,462 100 % 27 $ 669,929 100 % (1) As of December 31, 2022, one loan investment secured by a mixed use property consisting of office space and an industrial warehouse in Aurora, IL was classified as office for the purpose of counting the number of loans in our portfolio because the majority of the square footage of the property consisted of office space. The amortized cost of this loan investment was reflected in office and industrial based on the fair value of the building at the time of origination relative to the total fair value of the property. During the year ended December 31, 2023, our loan investment in Aurora, IL was repaid. As of December 31, 2023 2022 Geographic Location Number of Loans Amortized Cost Percentage of Value Number of Loans Amortized Cost Percentage of Value South 8 $ 222,477 36 % 6 $ 166,616 25 % West 9 185,294 30 % 8 146,837 22 % Midwest 4 128,876 20 % 9 251,208 37 % East 3 89,815 14 % 4 105,268 16 % 24 $ 626,462 100 % 27 $ 669,929 100 %
Schedule of Carrying Value Excluding Allowance of Credit Losses	As of December 31, 2023 and 2022, the amortized cost of our loan portfolio within each internal risk rating by year of origination was as follows: December 31, 2023 Risk Rating Number of Loans Percentage of Portfolio 2023 2022 2021 Prior Total 1 — — % $ — $ — $ — $ — $ — 2 3 15 % 37,323 42,089 15,435 — 94,847 3 18 71 % 94,881 167,491 144,456 38,548 445,376 4 3 14 % — — 86,239 — 86,239 5 — — % — — — — — 24 100 % $ 132,204 $ 209,580 $ 246,130 $ 38,548 $ 626,462 December 31, 2022 Risk Rating Number of Loans Percentage of Portfolio 2022 2021 2020 Prior Total 1 1 1 % $ — $ — $ 9,708 $ — $ 9,708 2 6 20 % — 65,902 68,740 — 134,642 3 17 65 % 169,516 235,602 — 28,998 434,116 4 3 14 % 36,506 39,314 — 15,643 91,463 5 — — % — — — — — 27 100 % $ 206,022 $ 340,818 $ 78,448 $ 44,641 $ 669,929
Schedule of Changes to Allowance for Credit Loss	The table below present the change to the allowance for credit losses during the year ended December 31, 2023: Loans Held for Investment, net Unfunded Loan Commitments Total Balance at December 31, 2022 $ — $ — $ — Cumulative-effect adjustment upon adoption of ASU No. 2016-13 4,893 1,702 6,595 Reversal of credit losses (549) (250) (799) Write offs (1) (708) — (708) Recoveries 740 — 740 Balance at December 31, 2023 $ 4,376 $ 1,452 $ 5,828 (1) Write offs for the year ended December 31, 2023 relate to our loan secured by an office property located in Yardley, PA that was originated in 2019. We assumed legal title to the property through a deed in lieu of foreclosure in June 2023. See Note 4 for further information.

Real Estate Owned (Tables)

Real Estate Owned (Tables)	12 Months Ended
	Dec. 31, 2023
Banking and Thrift, Interest [Abstract]
Summarizes the Estimated Consideration Transferred and Liabilities Assumed	We accounted for the acquisition as an asset acquisition and allocated the fair value of the assumed assets and liabilities on the acquisition date as follows: Acquisition Date Fair Value Land Buildings and Improvements Acquired Real Estate Leases June 2023 $ 14,800 $ 2,880 $ 7,325 $ 4,595
Schedule of Operating Lease Maturity	The following operating lease maturity analysis presents the future contractual lease payments to be received by us through 2034 as of December 31, 2023: Year Amount 2024 $ 1,743 2025 1,925 2026 1,824 2027 1,892 2028 1,868 Thereafter 5,957 Total $ 15,209

Secured Financing Agreements (T

Secured Financing Agreements (Tables)	12 Months Ended
	Dec. 31, 2023
Debt Disclosure [Abstract]
Schedule of Secured Financing Agreements	The table below summarizes our Secured Financing Facilities as of December 31, 2023 and 2022: Debt Obligation Weighted Average Collateral Maximum Facility Size Principal Balance Carrying Value Coupon Rate (1) Remaining Maturity (years) (2) Principal Balance December 31, 2023: Citibank Master Repurchase Facility $ 215,000 $ 91,115 $ 90,811 7.47 % 0.7 $ 142,465 UBS Master Repurchase Facility 205,000 181,381 181,162 7.72 % 0.8 241,887 BMO Facility 150,000 87,767 87,451 7.29 % 1.3 118,471 Wells Fargo Master Repurchase Facility 125,000 95,551 94,998 7.44 % 1.1 127,069 Total/weighted average $ 695,000 $ 455,814 $ 454,422 7.53 % 0.9 $ 629,892 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 (1) The weighted average coupon rate is determined using SOFR plus a spread ranging from 1.83% to 2.90%, as applicable, for the respective borrowings under our Secured Financing Facilities as of the applicable date. (2) The weighted average remaining maturity of our Master Repurchase Facilities is determined using the earlier of the underlying loan investment maturity date and the respective repurchase agreement maturity date. As of December 31, 2023, our Citibank Master Repurchase Facility, UBS Master Repurchase Facility and Wells Fargo Master Repurchase Facility mature on March 15, 2025, February 18, 2025 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, 2023, our outstanding borrowings under our Secured Financing Facilities had the following remaining maturities: Maturity Year Principal Payments 2024 $ 223,745 2025 232,069 2026 and thereafter — $ 455,814

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2023
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The table below provides information regarding our financial assets and liabilities not carried at fair value in our consolidated balance sheets: As of December 31, 2023 2022 Carrying Value Fair Value Carrying Value Fair Value Financial assets Loans held for investment $ 622,086 $ 626,079 $ 669,929 $ 679,911 Financial liabilities Secured Financing Facilities $ 454,422 $ 454,620 $ 471,521 $ 471,362

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	12 Months Ended
	Dec. 31, 2023
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, 2023 and 2022 is as follows: 2023 2022 Number of Weighted Average Grant Number of Weighted Average Grant Unvested shares, beginning of year 129,680 $ 10.24 91,584 $ 10.39 Shares granted 122,000 $ 10.35 127,000 $ 10.29 Shares forfeited (2,334) $ 10.19 (1,016) $ 10.39 Shares vested (112,925) $ 9.96 (87,888) $ 10.45 Unvested shares, end of year 136,421 $ 10.57 129,680 $ 10.24
Schedule of Dividends Declared	During the years ended December 31, 2023 and 2022, we declared and paid regular quarterly distributions to common shareholders, using cash on hand, as follows: Characterization of Distributions Year Annual Per Share Distribution Total Distribution Return of Capital Ordinary Income Qualified Dividend 2023 $ 1.40 $ 20,639 — % 100 % — % 2022 $ 1.00 $ 14,636 — % 100 % — %

Weighted Average Common Shares

Weighted Average Common Shares (Tables)	12 Months Ended
	Dec. 31, 2023
Earnings Per Share [Abstract]
Schedule of Weighted Average Number of Shares	The calculation of net income per common share - basic and diluted is as follows (amounts in thousands, except per share data): Year Ended December 31, 2023 2022 Numerators: Net income $ 25,965 $ 27,640 Income attributable to unvested share awards (219) (193) Net income used in calculating net income per common share - basic and diluted $ 25,746 $ 27,447 Denominators: Weighted average common shares outstanding - basic and diluted 14,625 14,540 Net income per common share - basic and diluted $ 1.76 $ 1.89

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Jan. 01, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percent ownership	100%
Allowance for credit losses	$ 4,376		$ 0
Depreciation expense related to real estate owned	136
Accumulated amortization of real estate owned	$ 458
Acquired lease term	7 years 4 months 24 days
Amortization of acquired lease 2024	$ 771
Amortization of acquired lease 2025	594
Amortization of acquired lease 2026	493
Amortization of acquired lease 2027	493
Amortization of acquired lease 2028	466
Amortization of acquired lease thereafter	$ 1,320
Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Estimated useful lives	7 years
Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Estimated useful lives	40 years
Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	$ 5,828		0
Loans Held for Investment, net
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	4,376		0
Unfunded Loan Commitments
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	$ 1,452		0
Cumulative Effect, Period of Adoption, Adjustment | Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses		$ 6,595	6,595
Cumulative Effect, Period of Adoption, Adjustment | Loans Held for Investment, net
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses		4,893	4,893
Cumulative Effect, Period of Adoption, Adjustment | Unfunded Loan Commitments
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses		$ 1,702	$ 1,702

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Real Estate Owned (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Total real estate owned	$ 11,393
Less: accumulated amortization	(115)
Real estate owned, net	11,278	$ 0
Acquired real estate leases	4,595
Less: accumulated depreciation	458
Acquired real estate leases, net	4,137	$ 0
Land
Property, Plant and Equipment [Line Items]
Total real estate owned	2,880
Building and improvements
Property, Plant and Equipment [Line Items]
Total real estate owned	7,349
Tenant improvements
Property, Plant and Equipment [Line Items]
Total real estate owned	$ 1,164

Loans Held for Investment - Loa

Loans Held for Investment - Loan Portfolio Statistics (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($) loan	Dec. 31, 2022 USD ($) loan	Dec. 31, 2021 USD ($)
Receivables [Abstract]
Number of Loans | loan	24	27
Total loan commitments	$ 670,293	$ 727,562
Unfunded loan commitments	40,401	49,007
Principal balance	629,892	678,555	$ 590,590
Carrying value	$ 622,086	$ 669,929
Weighted average coupon rate	9.19%	8.07%
Weighted average all in yield	9.64%	8.57%
Weighted average floor	1.36%	0.62%
Weighted average maximum maturity (years)	3 years	3 years 3 months 18 days
Weighted average risk rating	3	2.9

Loans Held for Investment - L_2

Loans Held for Investment - Loan Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Principal Balance
Principal, beginning balance	$ 678,555	$ 590,590
Additional funding	5,650	17,310
Originations	133,300	203,244
Repayments	(171,748)	(132,589)
Transfer to real estate owned	(15,865)
Principal, ending balance	629,892	678,555
Deferred Fees and Other Items
Beginning balance	(8,626)	(19,810)
Additional funding	(14)	0
Originations	(1,621)	(2,306)
Repayments	(535)	(979)
Transfer to real estate owned	(95)
Net amortization of deferred fees	3,333	3,780
Purchase discount accretion	4,128	10,689
Ending balance	(3,430)	(8,626)
Amortized Cost
Beginning balance	669,929	570,780
Additional funding	5,636	17,310
Originations	131,679	200,938
Repayments	(172,283)	(133,568)
Transfer to real estate owned	(15,960)
Net amortization of deferred fees	3,333	3,780
Purchase discount accretion	4,128	10,689
Ending balance	$ 626,462	$ 669,929

Loans Held for Investment - L_3

Loans Held for Investment - Loan Portfolio (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($) loan	Dec. 31, 2022 USD ($) loan	Dec. 31, 2021 USD ($)
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	24	27
Amortized Cost | $	$ 626,462	$ 669,929	$ 570,780
Percentage of Portfolio	100%	100%
South
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	8	6
Amortized Cost | $	$ 222,477	$ 166,616
Percentage of Portfolio	36%	25%
West
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	9	8
Amortized Cost | $	$ 185,294	$ 146,837
Percentage of Portfolio	30%	22%
Midwest
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	4	9
Amortized Cost | $	$ 128,876	$ 251,208
Percentage of Portfolio	20%	37%
East
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	3	4
Amortized Cost | $	$ 89,815	$ 105,268
Percentage of Portfolio	14%	16%
Multifamily
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	7	8
Amortized Cost | $	$ 207,734	$ 197,229
Percentage of Portfolio	33%	29%
Office
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	7	11
Amortized Cost | $	$ 181,268	$ 252,796
Percentage of Portfolio	29%	38%
Industrial
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	5	4
Amortized Cost | $	$ 118,707	$ 110,656
Percentage of Portfolio	19%	17%
Retail
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	3	4
Amortized Cost | $	$ 72,962	$ 109,248
Percentage of Portfolio	12%	16%
Hotel
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	2	0
Amortized Cost | $	$ 45,791	$ 0
Percentage of Portfolio	7%	0%

Loans Held for Investment - L_4

Loans Held for Investment - Loan Risk Ratings Carrying Value (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($) loan	Dec. 31, 2022 USD ($) loan
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	24	27
Percentage of Portfolio	100%	100%
2023	$ 132,204	$ 206,022
2022	209,580	340,818
2021	246,130	78,448
Prior	38,548	44,641
Loans held for investment	$ 626,462	$ 669,929
1
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	0	1
Percentage of Portfolio	0%	1%
2023	$ 0	$ 0
2022	0	0
2021	0	9,708
Prior	0	0
Loans held for investment	$ 0	$ 9,708
2
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	3	6
Percentage of Portfolio	15%	20%
2023	$ 37,323	$ 0
2022	42,089	65,902
2021	15,435	68,740
Prior	0	0
Loans held for investment	$ 94,847	$ 134,642
3
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	18	17
Percentage of Portfolio	71%	65%
2023	$ 94,881	$ 169,516
2022	167,491	235,602
2021	144,456	0
Prior	38,548	28,998
Loans held for investment	$ 445,376	$ 434,116
4
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	3	3
Percentage of Portfolio	14%	14%
2023	$ 0	$ 36,506
2022	0	39,314
2021	86,239	0
Prior	0	15,643
Loans held for investment	$ 86,239	$ 91,463
5
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	0	0
Percentage of Portfolio	0%	0%
2023	$ 0	$ 0
2022	0	0
2021	0	0
Prior	0	0
Loans held for investment	$ 0	$ 0

Loans Held for Investment - Nar

Loans Held for Investment - Narrative (Details) - USD ($) $ in Thousands	1 Months Ended		12 Months Ended
	Aug. 31, 2023	Jun. 30, 2023	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, reversal of accrued interest			$ 88
MISSOURI | Office
Accounts, Notes, Loans and Financing Receivable [Line Items]
Proceeds from outstanding principal amount		$ 5
Financing receivable, extended maturity period		6 months
OHIO | Office
Accounts, Notes, Loans and Financing Receivable [Line Items]
Proceeds from outstanding principal amount	$ 2
Financing receivable, extended maturity period	1 year

Loans Held for Investment, net

Loans Held for Investment, net - Provision for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2023	Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance		$ 0
Reversal of credit losses		(799)	$ 0
Ending balance		4,376	0
Loans Held for Investment, net
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance		0
Reversal of credit losses		(549)
Write offs		(708)
Recoveries	$ 740	740
Ending balance		4,376	0
Loans Held for Investment, net | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance		4,893
Ending balance			4,893
Unfunded Loan Commitments
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance		0
Reversal of credit losses		(250)
Write offs		0
Recoveries		0
Ending balance		1,452	0
Unfunded Loan Commitments | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance		1,702
Ending balance			1,702
Total
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance		0
Reversal of credit losses		(799)
Write offs		(708)
Recoveries		740
Ending balance		5,828	0
Total | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance		$ 6,595
Ending balance			$ 6,595

Real Estate Owned - Narrative (

Real Estate Owned - Narrative (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2023
Real Estate [Line Items]
Other assets related to real estate owned				$ 1,352
Straight line rent receivables				$ 647
Acquired lease term				7 years 4 months 24 days
Accrued expenses and other liabilities related to real estate owned				$ 517
Straight line rent adjustments				647
Loans Held for Investment, net
Real Estate [Line Items]
Recoveries		$ 740		740
Total
Real Estate [Line Items]
Recoveries				740
Unfunded Loan Commitments
Real Estate [Line Items]
Recoveries				$ 0
Office Property, Yardley, PA
Real Estate [Line Items]
Acquired real estate leases	$ 15,960		$ 15,960
Real estate owned, fair value of property, including cash	1,742		1,742
Net working capital	550		550
Real estate owned, estimated cost to sell	740		740
Real estate owned, estimated cost to sell by	708
Real estate owned, allowance for credit losses	1,335
Real estate owned, decrease to provision for credit losses			627
Outstanding commitments for lease related cost	$ 2,258		$ 2,258

Real Estate Owned - Schedule of

Real Estate Owned - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Banking and Thrift, Interest [Abstract]
Fair Value	$ 14,800
Land	2,880
Buildings and Improvements	7,325
Acquired Real Estate Leases	$ 4,595

Real Estate Owned - Schedule _2

Real Estate Owned - Schedule of Operating Lease Maturity (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Banking and Thrift, Interest [Abstract]
2024	$ 1,743
2025	1,925
2026	1,824
2027	1,892
2028	1,868
Thereafter	5,957
Total	$ 15,209

Secured Financing Agreements -

Secured Financing Agreements - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Aug. 31, 2023	Dec. 31, 2022	Feb. 18, 2021
Total/weighted average
Assets Sold under Agreements to Repurchase [Line Items]
Maximum facility size	$ 695,000		$ 682,000
UBS Master Repurchase Facility | Total/weighted average
Assets Sold under Agreements to Repurchase [Line Items]
Maximum facility size		$ 205,000
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 Master Repurchase Facility | Master Repurchase Facility
Assets Sold under Agreements to Repurchase [Line Items]
Maximum facility size	$ 205,000		192,000
Citibank Master Repurchase Facility | Total/weighted average
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 Master Repurchase Facility | Total/weighted average | LIBOR
Assets Sold under Agreements to Repurchase [Line Items]
Variable basis spread	2%
Citibank Master Repurchase Facility | Total/weighted average | Minimum | SOFR
Assets Sold under Agreements to Repurchase [Line Items]
Variable basis spread	2%
Citibank Master Repurchase Facility | Total/weighted average | Maximum | SOFR
Assets Sold under Agreements to Repurchase [Line Items]
Variable basis spread	2.50%
Citibank Master Repurchase Facility | Master Repurchase Facility
Assets Sold under Agreements to Repurchase [Line Items]
Maximum facility size	$ 215,000		215,000
BMO Facility | Total/weighted average
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 Facility | Master Repurchase Facility
Assets Sold under Agreements to Repurchase [Line Items]
Maximum facility size	$ 150,000		150,000
Wells Fargo Master Repurchase Facility | Total/weighted average
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 Master Repurchase Facility | Total/weighted average | Minimum
Assets Sold under Agreements to Repurchase [Line Items]
Percent of purchased asset	75%
Wells Fargo Master Repurchase Facility | Total/weighted average | Maximum
Assets Sold under Agreements to Repurchase [Line Items]
Percent of purchased asset	80%
Wells Fargo Master Repurchase Facility | Wells Fargo Master Repurchase Facility
Assets Sold under Agreements to Repurchase [Line Items]
Maximum facility size	$ 125,000		$ 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, 2023	Dec. 31, 2022	Aug. 31, 2023
Total/weighted average
Debt Instrument [Line Items]
Maximum Facility Size	$ 695,000	$ 682,000
Principal Balance	455,814	473,615
Carrying Value	$ 454,422	$ 471,521
Coupon Rate	7.53%	6.34%
Remaining maturity (Years)	10 months 24 days	1 year 6 months
Principal Balance	$ 629,892	$ 640,972
SOFR | Total/weighted average | Maximum
Debt Instrument [Line Items]
Coupon Rate	2.90%
SOFR | Total/weighted average | Minimum
Debt Instrument [Line Items]
Coupon Rate	1.83%
Citibank Master Repurchase Facility | Master Repurchase Facility
Debt Instrument [Line Items]
Maximum Facility Size	$ 215,000	215,000
Principal Balance	91,115	150,647
Carrying Value	$ 90,811	$ 150,360
Coupon Rate	7.47%	6.34%
Remaining maturity (Years)	8 months 12 days	1 year 1 month 6 days
Principal Balance	$ 142,465	$ 205,234
UBS Master Repurchase Facility | Total/weighted average
Debt Instrument [Line Items]
Maximum Facility Size			$ 205,000
UBS Master Repurchase Facility | Master Repurchase Facility
Debt Instrument [Line Items]
Maximum Facility Size	205,000	192,000
Principal Balance	181,381	144,437
Carrying Value	$ 181,162	$ 143,887
Coupon Rate	7.72%	6.48%
Remaining maturity (Years)	9 months 18 days	1 year 1 month 6 days
Principal Balance	$ 241,887	$ 198,254
BMO Facility | Master Repurchase Facility
Debt Instrument [Line Items]
Maximum Facility Size	150,000	150,000
Principal Balance	87,767	111,105
Carrying Value	$ 87,451	$ 110,473
Coupon Rate	7.29%	6.22%
Remaining maturity (Years)	1 year 3 months 18 days	2 years 2 months 12 days
Principal Balance	$ 118,471	$ 148,476
Wells Fargo Master Repurchase Facility | Wells Fargo Master Repurchase Facility
Debt Instrument [Line Items]
Maximum Facility Size	125,000	125,000
Principal Balance	95,551	67,426
Carrying Value	$ 94,998	$ 66,801
Coupon Rate	7.44%	6.23%
Remaining maturity (Years)	1 year 1 month 6 days	2 years 1 month 6 days
Principal Balance	$ 127,069	$ 89,008

Secured Financing Agreements _3

Secured Financing Agreements - Debt Maturities (Details) - Total/weighted average $ in Thousands	Dec. 31, 2023 USD ($)
Debt Instrument [Line Items]
2024	$ 223,745
2025	232,069
2026 and thereafter	0
Total	$ 455,814

Fair Value Measurements - Recur

Fair Value Measurements - Recurring Fair Value (Details) - Level III - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for investment	$ 622,086	$ 669,929
Secured Financing Facilities	454,422	471,521
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for investment	626,079	679,911
Secured Financing Facilities	$ 454,620	$ 471,362

Shareholders' Equity - Narrativ

Shareholders' Equity - Narrative (Details) $ / shares in Units, $ in Thousands		12 Months Ended
	Jan. 11, 2024 USD ($) $ / shares	Dec. 31, 2023 USD ($) installment $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares
Subsidiary, Sale of Stock [Line Items]
Share repurchases (in shares)		17,421	13,898
Shares repurchased | $		$ 183	$ 137
Annual per share distribution (in dollars per share) | $ / shares		$ 1.40	$ 1
Distributions | $		$ 20,639	$ 14,636
Subsequent Event
Subsidiary, Sale of Stock [Line Items]
Distribution per Share, declared (in dollars per share) | $ / shares	$ 0.35
Annual per share distribution (in dollars per share) | $ / shares	$ 0.35
Distributions | $	$ 5,184
2021 Equity Compensation Plan | Restricted Unvested Common Shares
Subsidiary, Sale of Stock [Line Items]
Shares granted (in shares)		122,000	127,000
Number of installments | installment		5
2024		46,722
2025		43,300
2026		30,400
2027		15,999
Future compensation expense | $		$ 1,303
Future compensation expense, period of recognition		22 months
Compensation expense | $		$ 1,121	$ 1,018
Common shares available for issuance (in shares)		148,829
Officers And Certain Other Employees Compensation Arrangement | Restricted Unvested Common Shares
Subsidiary, Sale of Stock [Line Items]
Shares granted (in shares)		80,000	85,000
Grants in period | $		$ 876	$ 859
Trustee Compensation Arrangements | Restricted Unvested Common Shares
Subsidiary, Sale of Stock [Line Items]
Shares granted (in shares)		6,000	6,000
Grants in period | $		$ 387	$ 448

Shareholders' Equity - Nonveste

Shareholders' Equity - Nonvested Share Activity (Details) - Restricted Unvested Common Shares - 2021 Equity Compensation Plan - $ / shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Number of Shares
Unvested shares, beginning of year (in shares)	129,680	91,584
Shares granted (in shares)	122,000	127,000
Shares forfeited (in shares)	(2,334)	(1,016)
Shares vested (in shares)	(112,925)	(87,888)
Unvested shares, end of year (in shares)	136,421	129,680
Weighted Average Grant Date Fair Value
Unvested shares, beginning of year (in dollars per share)	$ 10.24	$ 10.39
Shares granted (in dollars per share)	10.35	10.29
Shares forfeited (in dollars per share)	10.19	10.39
Shares vested (in dollars per share)	9.96	10.45
Unvested shares, end of year (in dollars per share)	$ 10.57	$ 10.24

Shareholders' Equity - Repurcha

Shareholders' Equity - Repurchases and Distributions (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Equity [Abstract]
Annual Per Share Distribution (in dollars per share)	$ 1.40	$ 1
Total Distribution	$ 20,639	$ 14,636
Return of Capital	0%	0%
Ordinary Income	100%	100%
Qualified Dividend	0%	0%

Management Agreement with Tre_2

Management Agreement with Tremont (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($) employee	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%
Management agreement term	1 year
Management agreement, termination rights, affirmative vote threshold, percentage	66.67%
Management agreement terminated upon written notice delivered term	180 days
Management agreement, terminated upon written notice, cause event term	30 days
Management agreement termination fee	3
Termination fee calculation period	24 months
Exit fees	$ 1,600
Formation costs included in termination fee	$ 6,680
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) - USD ($) $ in Thousands			1 Months Ended	12 Months Ended
	Jan. 01, 2023	May 11, 2022	Jul. 31, 2023	Dec. 31, 2023
Affiliated Entity | Chief Financial Officer
Related Party Transaction [Line Items]
Accelerated vesting (in shares)	3,648
The RMR Group Inc
Related Party Transaction [Line Items]
Property management agreement, termination notice period			30 days
RMR Group
Related Party Transaction [Line Items]
Real estate owned, property management and construction supervision fees				$ 17
Related Party | Officers and Employees | Share-based Payment Arrangement, Tranche One
Related Party Transaction [Line Items]
Vesting percentage of awards granted				20%
Related Party | Officers and Employees | Share-based Payment Arrangement, Tranche Two
Related Party Transaction [Line Items]
Vesting percentage of awards granted				20%
Related Party | Officers and Employees | Share-based Payment Arrangement, Tranche Three
Related Party Transaction [Line Items]
Vesting percentage of awards granted				20%
Related Party | Officers and Employees | Share-Based Payment Arrangement, Tranche Four
Related Party Transaction [Line Items]
Vesting percentage of awards granted				20%
Related Party | Officers and Employees | Share-Based Payment Arrangement, Tranche Five
Related Party Transaction [Line Items]
Vesting percentage of awards granted				20%
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				11.50%
Management Services | Affiliated Entity | Diane Portnoy
Related Party Transaction [Line Items]
Ownership percentage				13.50%
Property Management Services | The RMR Group Inc
Related Party Transaction [Line Items]
Property management fee, percent fee			3%
Construction Supervision Services | The RMR Group Inc
Related Party Transaction [Line Items]
Property management fee, percent fee			5%

Weighted Average Common Share_2

Weighted Average Common Shares (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Numerators:
Net income	$ 25,965	$ 27,640
Income attributable to unvested share awards	(219)	(193)
Net income used in calculating net income per common share, basic	25,746	27,447
Net income used in calculating net income per common share, diluted	$ 25,746	$ 27,447
Denominators:
Weighted average common shares outstanding - basic (in shares)	14,625	14,540
Weighted average common shares outstanding - diluted (in shares)	14,625	14,540
Net income per common share, basic (in dollars per share)	$ 1.76	$ 1.89
Net income per common share, diluted (in dollars per share)	$ 1.76	$ 1.89

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Loss Contingencies [Line Items]
Unfunded loan commitments	$ 40,401	$ 49,007
Weighted average initial maturity	3 years	3 years 3 months 18 days
Unspent leasing related obligation	$ 361
Unfunded Commitments
Loss Contingencies [Line Items]
Weighted average initial maturity	1 year 1 month 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, 2023	Dec. 31, 2022	Dec. 31, 2021
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Principal	$ 629,892	$ 678,555	$ 590,590
Carrying Value	626,462	669,929	570,780
Total carrying value including allowance for credit losses	622,086	669,929	$ 570,780
Office
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	181,268	252,796
Retail
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	72,962	109,248
Multifamily
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	207,734	197,229
Industrial
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	118,707	110,656
Hotel
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	45,791	$ 0
First Mortgage Bridge Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Principal	629,892
Carrying Value	626,462
Less: allowance for credit losses	(4,376)
Total carrying value including allowance for credit losses	622,086
First Mortgage Bridge Loans | Office | Office, Dallas, TX
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	0
Principal	43,510
Carrying Value	41,949
First Mortgage Bridge Loans | Office | 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	29,544
First Mortgage Bridge Loans | Office | Office, Plano, TX
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	0
Principal	26,463
Carrying Value	26,475
First Mortgage Bridge Loans | Office | Office, Carlsbad, CA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	0
Principal	24,417
Carrying Value	24,349
First Mortgage Bridge Loans | Office | Office, Downers Grove, IL 2
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	0
Principal	23,530
Carrying Value	23,574
First Mortgage Bridge Loans | Office | 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	19,941
First Mortgage Bridge Loans | Office | Office, Westminster, CO
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	0
Principal	15,750
Carrying Value	$ 15,435
First Mortgage Bridge Loans | Office | SOFR | Office, Dallas, TX
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 | SOFR | Office, Downers Grove, IL
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 | SOFR | Office, Plano, TX
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 | SOFR | Office, Carlsbad, CA
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 | SOFR | Office, Downers Grove, IL 2
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 | SOFR | Office, Bellevue, WA
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 | SOFR | Office, Westminster, CO
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 | 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	42,089
First Mortgage Bridge Loans | Retail | Retail, Delray Beach, FL
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	0
Principal	15,602
Carrying Value	15,627
First Mortgage Bridge Loans | Retail | Retail, Sandy Springs, GA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	0
Principal	15,287
Carrying Value	$ 15,245
First Mortgage Bridge Loans | Retail | SOFR | Retail, Brandywine, MD
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 | SOFR | Retail, Delray Beach, FL
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	4.25%
First Mortgage Bridge Loans | Retail | SOFR | Retail, Sandy Springs, GA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.75%
First Mortgage Bridge Loans | Multifamily | Multifamily, Olmsted 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	46,471
First Mortgage Bridge Loans | Multifamily | Multifamily, Auburn, AL
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	0
Principal	37,500
Carrying Value	37,323
First Mortgage Bridge Loans | Multifamily | Multifamily, Starkville, MS
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	0
Principal	36,919
Carrying Value	36,767
First Mortgage Bridge Loans | Multifamily | Multifamily, Farmington Hills, MI
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	0
Principal	29,121
Carrying Value	29,287
First Mortgage Bridge Loans | Multifamily | Multifamily, Las Vegas, NV
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	0
Principal	25,185
Carrying Value	25,196
First Mortgage Bridge Loans | Multifamily | Multifamily, Portland, OR 1
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	0
Principal	19,688
Carrying Value	19,695
First Mortgage Bridge Loans | Multifamily | 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	$ 12,995
First Mortgage Bridge Loans | Multifamily | SOFR | Multifamily, Olmsted Falls, OH
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	4%
First Mortgage Bridge Loans | Multifamily | SOFR | Multifamily, Auburn, AL
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.25%
First Mortgage Bridge Loans | Multifamily | SOFR | Multifamily, Starkville, MS
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	4%
First Mortgage Bridge Loans | Multifamily | SOFR | Multifamily, Farmington Hills, MI
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 | SOFR | Multifamily, Las Vegas, NV
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 | SOFR | Multifamily, Portland, OR 1
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 | SOFR | Multifamily, Portland, OR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.57%
First Mortgage Bridge Loans | Industrial | Industrial, Passaic, NJ
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	$ 0
Principal	38,985
Carrying Value	38,723
First Mortgage Bridge Loans | Industrial | Industrial, Fountain Inn, SC
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	0
Principal	24,300
Carrying Value	24,084
First Mortgage Bridge Loans | Industrial | Industrial, Fayetteville, GA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	0
Principal	25,250
Carrying Value	25,007
First Mortgage Bridge Loans | Industrial | 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	21,891
First Mortgage Bridge Loans | Industrial | Industrial, Allentown, PA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	0
Principal	8,952
Carrying Value	$ 9,003
First Mortgage Bridge Loans | Industrial | SOFR | Industrial, Passaic, NJ
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 | SOFR | Industrial, Fountain Inn, SC
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	4.25%
First Mortgage Bridge Loans | Industrial | SOFR | Industrial, Fayetteville, GA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.35%
First Mortgage Bridge Loans | Industrial | SOFR | Industrial, Fontana, CA
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 | SOFR | Industrial, Allentown, PA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.50%
First Mortgage Bridge Loans | Hotel | Hotel, Anaheim, CA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	$ 0
Principal	29,000
Carrying Value	28,711
First Mortgage Bridge Loans | Hotel | Hotel, Scottsdale, AZ
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Prior Liens	0
Principal	17,250
Carrying Value	$ 17,081
First Mortgage Bridge Loans | Hotel | SOFR | Hotel, Anaheim, CA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	4%
First Mortgage Bridge Loans | Hotel | SOFR | Hotel, Scottsdale, AZ
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	4.25%

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, 2023	Dec. 31, 2022
Principal Balance
Beginning balance	$ 669,929	$ 570,780
Additions during the year:
Originations	133,300	203,244
Additional funding	5,636	17,310
Purchase discount accretion	4,128	10,689
Net amortization of deferred fees		3,780
Decrease in allowance for credit losses	517
Deductions during the year:
Repayments	(172,283)	(133,568)
Transfer to real estate owned	(15,960)
Deferred fees	(1,621)	(2,306)
Ending balance	622,086	669,929
Accounting Standards Update 2016-13
Principal Balance
Beginning balance	$ (4,893)
Deductions during the year:
Ending balance		$ (4,893)