Filed Pursuant to Rule 424(b)(3)
Registration No. 333-264540
INPOINT COMMERCIAL REAL ESTATE INCOME, INC.
SUPPLEMENT NO. 2 DATED DECEMBER 15, 2022 TO THE
PROSPECTUS DATED NOVEMBER 2, 2022
This prospectus supplement no. 2 (this “Supplement”) is part of and should be read in conjunction with the base prospectus of InPoint Commercial Real Estate Income, Inc. dated November 2, 2022 and prospectus supplement no. 1 dated November 15, 2022 (collectively the “prospectus”). Unless otherwise defined herein, capitalized terms used in this Supplement shall have the same meanings as in the prospectus.
The purposes of this Supplement are as follows:
Transaction Prices
The transaction price for each share class of our common stock for subscriptions to be accepted as of January 3, 2023, the first business day of the month, and for distribution reinvestments is as follows:
|
| Transaction |
| |
Class A |
| $ | 19.5424 |
|
Class T |
| $ | 19.5901 |
|
Class S |
| $ | 19.4998 |
|
Class D |
| $ | 19.5330 |
|
Class I |
| $ | 19.5384 |
|
As of November 30, 2022, we had not sold any Class S shares. The January 3, 2023 transaction price for our Class S shares is based on our aggregate NAV for all share classes as of November 30, 2022. The purchase price of our common stock for each share class equals the transaction price of such class, plus applicable upfront selling commissions and dealer manager fees. A detailed calculation of the NAV per share is set forth below. No transactions or events have occurred since November 30, 2022 that would have a material impact on our NAV per share.
November 30, 2022 NAV per Share
We calculate NAV per share in accordance with the valuation guidelines that have been approved by our board of directors. Our NAV per share, which is updated as of the last calendar day of each month, is posted on our website at www.inland-investments.com/inpoint. Please refer to “Net Asset Value Calculation and Valuation Guidelines” in the prospectus, as supplemented, for how our NAV is determined. The Advisor is ultimately responsible for determining our NAV. The valuation of our commercial real estate loan portfolio is reviewed by our independent valuation advisor. We have included a breakdown of the components of total net asset value attributable to common stock and NAV per share for November 30, 2022.
Our total net asset value attributable to common stock presented in the following table includes the NAV of our Class A, Class T, Class S, Class D, and Class I common stock being sold in this offering, as well as our Class P common stock, which is not being sold in this offering. As of November 30, 2022, we had not sold any Class S shares. The following table provides a breakdown of the major components of our total net asset value attributable to common stock as of November 30, 2022 ($ and shares in thousands, except per share data):
Components of NAV |
| November 30, 2022 |
| |
Commercial mortgage loans |
| $ | 841,152 |
|
Real estate owned, net |
|
| 17,100 |
|
Cash and cash equivalents and restricted cash |
|
| 17,996 |
|
Other assets |
|
| 8,911 |
|
Repurchase agreements - commercial mortgage loans |
|
| (488,146 | ) |
Loan participations sold |
|
| (98,538 | ) |
Reserve for negative impact of COVID on real estate owned (1) |
|
| (796 | ) |
Due to related parties |
|
| (2,419 | ) |
Distributions payable |
|
| (1,055 | ) |
Interest payable |
|
| (1,311 | ) |
Accrued stockholder servicing fees (2) |
|
| (156 | ) |
Other liabilities |
|
| (7,176 | ) |
Preferred stock |
|
| (87,210 | ) |
Net asset value attributable to common stock |
| $ | 198,352 |
|
Number of outstanding shares |
|
| 10,172 |
|
Aggregate NAV per share |
| $ | 19.4998 |
|
The following table provides a breakdown of our total net asset value attributable to common stock and NAV per share by share class as of November 30, 2022 ($ and shares in thousands, except per share data):
NAV Per Share |
| Class P |
|
| Class A |
|
| Class T |
|
| Class S |
|
| Class D |
|
| Class I |
|
| Total |
| |||||||
Net asset value attributable to common stock |
| $ | 168,627 |
|
| $ | 14,506 |
|
| $ | 5,879 |
|
| $ | — |
|
| $ | 933 |
|
| $ | 8,394 |
|
| $ | 198,352 |
|
Number of outstanding shares |
|
| 8,652 |
|
|
| 742 |
|
|
| 300 |
|
|
| — |
|
|
| 48 |
|
|
| 430 |
|
|
| 10,172 |
|
NAV per share as of November 30, 2022 |
| $ | 19.4902 |
|
| $ | 19.5424 |
|
| $ | 19.5901 |
|
| $ | — |
|
| $ | 19.5330 |
|
| $ | 19.5384 |
|
| $ | 19.4998 |
|
Commercial Mortgage Loans Held for Investment
The following information supplements the table of select loan information on page 93 of our prospectus to add each of our commercial mortgage loans entered into since November 15, 2022 as of December 14, 2022 ($ in thousands).
Since November 15, 2022
Origination |
| Loan |
| Principal |
|
| Cash Coupon (2) |
| All-in |
| Maximum |
| State |
| Property |
| LTV (4) |
| ||
11/17/22 |
| First Mortgage |
| $ | 22,000 |
|
| S+3.90% |
| 6.9% |
| 11/9/27 |
| AL |
| Multifamily |
|
| 70 | % |
|
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