FS Credit Real Estate Income Trust (FSREI) 10-Q 14 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 10, 2017
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Trading Symbol	CIK0001690536
Entity Registrant Name	FS Credit Real Estate Income Trust, Inc.
Entity Central Index Key	1,690,536
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Common Class S [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		571,410
Common Class Y [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		190,384

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Assets
Cash and cash equivalents	$ 245	$ 200
Restricted cash	2,000
Loans receivable	38,771	0
Reimbursement due from sponsor	164
Interest receivable	101
Total assets	41,281	200
Liabilities
Repurchase agreements payable (net of deferred financing costs of $396 and $0, respectively)	22,854
Due to related party	100
Interest payable	39
Other liabilities	178
Total liabilities	23,171
Commitments and contingencies (See Note 8)
Stockholders' equity
Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued and outstanding	0	0
Additional paid-in capital	18,060	200
Retained earnings	42
Total stockholders' equity	18,110	200
Total liabilities and equity	41,281	200
Common Class S [Member]
Stockholders' equity
Common stock, value	6	0
Total stockholders' equity	6	0
Common Class Y [Member]
Stockholders' equity
Common stock, value	2	0
Total stockholders' equity	2
Common Class T [Member]
Stockholders' equity
Common stock, value	0	0
Common Class T - C [Member]
Stockholders' equity
Common stock, value	0	0
Common Class D [Member]
Stockholders' equity
Common stock, value	0	0
Common Class M [Member]
Stockholders' equity
Common stock, value	0	0
Common Class I [Member]
Stockholders' equity
Common stock, value	$ 0	$ 0

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Deferred financing costs	$ 396	$ 0
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common Class S [Member]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	125,000,000	125,000,000
Common stock, shares issued	568,000	8,000
Common stock, shares outstanding	568,000	8,000
Common Class Y [Member]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	125,000,000	125,000,000
Common stock, shares issued	154,720	0
Common stock, shares outstanding	154,720	0
Common Class T [Member]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	125,000,000	125,000,000
Common stock, shares issued	0	0
Common stock, shares outstanding	0	0
Common Class T - C [Member]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	125,000,000	125,000,000
Common stock, shares issued	0	0
Common stock, shares outstanding	0	0
Common Class D [Member]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	125,000,000	125,000,000
Common stock, shares issued	0	0
Common stock, shares outstanding	0	0
Common Class M [Member]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	125,000,000	125,000,000
Common stock, shares issued	0	0
Common stock, shares outstanding	0	0
Common Class I [Member]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	0	0
Common stock, shares outstanding	0	0

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017
Net interest income
Interest income	$ 116	$ 116
Less: Interest expense	61	61
Net interest income	55	55
Other expenses
General and administrative expenses	177	177
Less: Expense limitation	(164)	(164)
Net other expenses	13	13
Net income	$ 42	$ 42
Per share information-basic and diluted
Net income (loss) per share of common stock (earnings per share)	$ 0.25	$ 0.67
Weighted average common stock outstanding	171,417	63,071

Consolidated Statement of Chang

Consolidated Statement of Changes in Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Class S [Member]	Common Class Y [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]
Balance at beginning of period, amount at Dec. 07, 2016	$ 0			$ 0
Common stock issued	200	$ 0		200
Common stock issued, shares		8,000
Balance at end of period, amount at Dec. 31, 2016	200	$ 0		200
Balance at end of period, shares at Dec. 31, 2016		8,000
Common stock issued	17,868	$ 6	$ 2	17,860
Common stock issued, shares		560,000	154,720
Net income (loss)	42				$ 42
Balance at end of period, amount at Sep. 30, 2017	$ 18,110	$ 6	$ 2	$ 18,060	$ 42
Balance at end of period, shares at Sep. 30, 2017		568,000	154,720

Consolidated Statement of Cash

Consolidated Statement of Cash Flows (Unaudited) $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)
Cash flows from operating activities
Net income	$ 42
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of deferred fees on loans	(14)
Amortization of deferred financing costs	21
Changes in assets and liabilities
Interest receivable	(101)
Reimbursement due from sponsor	(164)
Due to related party	100
Interest payable	39
Other liabilities	178
Net cash provided by (used in) operating activities	101
Cash flows used in investing activities:
Origination and fundings of loans receivable	(38,757)
Net cash used in investing activities	(38,757)
Cash flows from financing activities
Issuance of common stock	17,868
Borrowings under repurchase agreement	23,250
Payment of deferred financing costs	(417)
Net cash provided by (used in) financing activities	40,701
Total increase in cash, cash equivalents and restricted cash	2,045
Cash, cash equivalents and restricted cash at beginning of period	200
Cash, cash equivalents and restricted cash at end of period	2,245
Supplemental disclosure of cash flows information
Payments of interest	$ 0

Principal Business and Organiza

Principal Business and Organization	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Principal Business and Organization	Note 1. Principal Business and Organization FS Credit Real Estate Income Trust, Inc. (formerly FS Real Estate Credit Income Trust, Inc.), or the Company, was incorporated under the general corporation laws of the State of Maryland on November 7, 2016 and formally commenced investment operations on September 13, 2017. The Company is currently conducting an initial public offering of up to $2,750,000 of its Class T, Class T-C, S-11 sub-adviser. The Company intends to qualify as a real estate investment trust, or REIT, for U.S. federal income tax purposes commencing with its first taxable year of operations. The Company intends to be an investment vehicle of indefinite duration focused on real estate debt investments and other real estate-related assets, the shares of common stock are generally intended to be sold and repurchased by the Company on a continuous basis. The Company intends to conduct its operations so that it is not required to register under the Investment Company Act of 1940, as amended, or the 1940 Act. The Company’s primary investment objectives are to: provide current income in the form of regular, stable cash distributions to achieve an attractive dividend yield; preserve and protect invested capital; realize appreciation in net asset value, or NAV, from proactive investment management and asset management; and provide an investment alternative for stockholders seeking to allocate a portion of their long-term investment portfolios to commercial real estate debt with lower volatility than public real estate companies.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2. Summary of Significant Accounting Policies Basis of Presentation: Use of Estimates: Cash, Cash Equivalents and Restricted Cash: The following table provides a reconciliation of cash, cash equivalents and restricted cash in the Company’s consolidated balance sheet to the total amount shown in the Company’s consolidated statement of cash flows: September 30, 2017 Cash and cash equivalents $ 245 Restricted cash 2,000 Total cash, cash equivalents and restricted cash shown in the Company’s consolidated statement of cash flows $ 2,245 Loans Receivable and Provision for Loan Losses: Deferred Financing Costs: Fair Value of Financial Instruments: Fair Value Measurements and Disclosures ASC Topic 820 also establishes a fair value hierarchy that prioritizes and ranks the level of market price observability used in measuring financial instruments. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument, and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination, as follows: Level 1: Generally includes only unadjusted quoted prices that are available in active markets for identical financial instruments as of the reporting date. Level 2: Pricing inputs include quoted prices in active markets for similar instruments, quoted prices in less active or inactive markets for identical or similar instruments where multiple price quotes can be obtained, and other observable inputs, such as interest rates, yield curves, credit risks, and default rates. Level 3 Pricing inputs are unobservable for the financial instruments and include situations where there is little, if any, market activity for the financial instrument. These inputs require significant judgment or estimation by management of third parties when determining fair value and generally represent anything that does not meet the criteria of Levels 1 and 2. The estimated value of each asset reported at fair value using Level 3 inputs is determined by an internal committee composed of members of senior management of FS Real Estate Advisor. Certain of the Company’s other assets are reported at fair value either (i) on a recurring basis, as of each quarter-end, The Company is also required by GAAP to disclose fair value information about financial instruments, that are not otherwise reported at fair value in the Company’s consolidated balance sheet, to the extent it is practicable to estimate a fair value for those instruments. These disclosure requirements exclude certain financial instruments and all non-financial The following methods and assumptions are used to estimate the fair value of each class of financial instruments, for which it is practicable to estimate that value: • Cash and cash equivalents: The carrying amount of cash on deposit and in money market funds approximates fair value. • Restricted cash: The carrying amount of restricted cash approximates fair value. • Loans receivable, net: The fair values for these loans were estimated by FS Real Estate Advisor based on discounted cash flow methodology taking into consideration factors, including capitalization rates, discount rates, leasing, occupancy rates, availability and cost of financing, exit plan, sponsorship, actions of other lenders, and indications of market value from other market participants. • Repurchase obligations: The fair values for these instruments were estimated based on the rate at which a similar credit facility would have currently priced. Revenue Recognition: ex-dividend Organization Costs: Offering Costs: Income Taxes: Uncertainty in Income Taxes Stockholder Servicing Fees: Liabilities Class T-C, paid-in Class T-C,

Loans Receivable

Loans Receivable	9 Months Ended
	Sep. 30, 2017
Receivables [Abstract]
Loans Receivable	Note 3. Loans Receivable The following table details overall statistics for the Company’s loans receivable portfolio: September 30, 2017 Number of loans 2 Principal balance $ 38,750 Net book value $ 38,771 Unfunded loan commitments (1) $ 5,060 Weighted-average yield (2) 6.00 % Weighted-average maximum maturity (years) (3) 3.3 (1) The Company may be required to provide funding when requested by the borrowers in accordance with the terms of the underlying agreements. (2) As of September 30, 2017, the Company’s floating rate loans were indexed to the US Dollar London Interbank Offered Rate, or LIBOR. (3) Maximum maturity assumes all extension options are exercised by the borrower, however loans may be repaid prior to such date. For the nine months ended September 30, 2017, the activity in the Company’s loan portfolio was as follows: Loans Balance at beginning of period $ — Loan fundings 38,757 Sales and repayments — Realized gain (loss) on sale of loans receivable — Accretion/amortization of discount, premium and other fees 14 Balance at end of period $ 38,771 The Company did not have any impaired loans, non-accrual

Financing Arrangements

Financing Arrangements	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Financing Arrangements	Note 4. Financing Arrangements The following table presents summary information with respect to the Company’s outstanding financing arrangement as of September 30, 2017: Arrangement Type of Weighted (1) Amount Amount Weighted (2) WF-1 (1) Repurchase 3.53 % $ 23,250 $ 51,750 3.3 (1) The carrying amount outstanding under the facility approximates its fair value. (2) The weighted average term is determined based on the maximum maturity of the corresponding loans, assuming all extension options are exercised by the borrowers. Each transaction under the facility has its own specific terms. The Company’s average borrowings for the nine months ended September 30, 2017 was $1,469. On August 30, 2017, the Company’s indirect wholly owned, special-purpose financing subsidiary, FS CREIT Finance WF-1 WF-1 WF-1 WF-1 The funding period and term of the WF-1 one-year The Company incurred costs of $417 in connection with obtaining the WF-1 In connection with the Repurchase Agreement, the Company also entered into a guarantee agreement, or the Guarantee, pursuant to which the Company will guarantee its subsidiary’s obligations under the Repurchase Agreement with Wells Fargo, subject to limitations specified therein. The Repurchase Agreement and Guarantee contain representations, warranties, covenants, events of default and indemnities that are customary for agreements of their type. In addition, the Company’s subsidiary is required to maintain a certain minimum liquidity amount in a collateral account with Wells Fargo and the Company is required (i) to maintain its adjusted tangible net worth at an amount equal to or greater than (x) before it has achieved the equity capital threshold, the sum of $37,500 plus 75% of all equity capital raised by it from and after the closing date and (y) after it has achieved the equity capital threshold, the greater of (A) the sum of $37,500 plus 75% of all equity capital raised by it from and after the closing date and (B) 75% of the then-current maximum facility size; (ii) to maintain, commencing on September 30, 2018, an earnings before interest, taxes, depreciation and amortization, or EBITDA, to interest expense ratio not less than 1.50 to 1.00; (iii) to maintain a total indebtedness to tangible net worth ratio of less than 3.00 to 1.00; and (iv) to maintain (x) the sum of its liquidity plus (y) an amount equal to all cash and cash equivalents then held in certain cash collateral accounts at not less than 10% of the then-current maximum facility size. As of September 30, 2017, the Company was in compliance with these covenants.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2017
Related Party Transactions [Abstract]
Related Party Transactions	Note 5. Related Party Transactions Compensation of FS Real Estate Advisor and the Dealer Manager Pursuant to the amended and restated advisory agreement dated as of August 30, 2017, or the advisory agreement, FS Real Estate Advisor is entitled to a base management fee that accrues daily equal to 1/365th of 1.25% of the NAV for the Company’s Class T, Class T-C, Class The performance fee will be calculated and payable quarterly in arrears in an amount equal to 10.0% of the Company’s Core Earnings (as defined below) for the immediately preceding quarter, subject to a hurdle rate, expressed as a rate of return on average adjusted capital, equal to 1.625% per quarter, or an annualized hurdle rate of 6.5%. As a result, FS Real Estate Advisor does not earn a performance fee for any quarter until the Company’s Core Earnings for such quarter exceed the hurdle rate of 1.625%. For purposes of the performance fee, “adjusted capital” means cumulative net proceeds generated from sales of the Company’s common stock (including proceeds from the Company’s distribution reinvestment plan) reduced for distributions from non-liquidating “catch-up” For purposes of calculating the performance fee, “Core Earnings” means: the net income (loss) attributable to stockholders of Class Y, Class T, Class T-C, Class (i) non-cash non-cash (v) one-time non-cash Pursuant to the amended and restated sub-advisory sub-advisory The Company will reimburse FS Real Estate Advisor and Rialto for their actual costs incurred in providing administrative services. FS Real Estate Advisor and Rialto will be required to allocate the cost of such services to the Company based on objective factors such as total assets, revenues and/or time allocations. At least annually, the Company’s board of directors will review the amount of the administrative services expenses reimbursable to FS Real Estate Advisor and Rialto to determine whether such amounts are reasonable in relation to the services provided. The Company will not reimburse FS Real Estate Advisor or Rialto for any services for which it receives a separate fee or for any administrative expenses allocated to employees to the extent they serve as executive officers of the Company. FS Investments funded the Company’s organization and offering costs in the amount of $243 and $2,369, respectively for the period from November 7, 2016 (Inception) to September 30, 2017. These expenses include legal, accounting, printing, mailing and filing fees and expenses, due diligence expenses of participating broker-dealers supported by detailed and itemized invoices, costs in connection with preparing sales materials, design and website expenses, fees and expenses of the Company’s transfer agent, fees to attend retail seminars sponsored by participating broker-dealers and reimbursements for customary travel, lodging, and meals, but excluding selling commissions, dealer manager fees and stockholder servicing fees. Under the advisory agreement, FS Real Estate Advisor has agreed to advance all of the Company’s organization and offering expenses on the Company’s behalf until it has raised $250,000 of gross proceeds from its public offering. The Company will reimburse FS Real Estate Advisor for any organization and offering expenses that it or Rialto has incurred on the Company’s behalf, up to a cap of 0.75% of the gross proceeds from its public offering in excess of $250,000. During the nine months ended September 30, 2017, the Company incurred costs of $100 in connection with obtaining the WF-1 The dealer manager for the Company’s continuous public offering is FS Investment Solutions, LLC, or FS Investment Solutions, which is one of the Company’s affiliates. Under the dealer manager agreement, dated as of September 7, 2017, or the dealer manager agreement, FS Investment Solutions is entitled to receive upfront selling commissions of up to 3.0%, and upfront dealer manager fees of 1.25% of the purchase price of each Class T share sold in the primary offering (subject to reductions for certain categories of purchasers). FS Investment Solutions is entitled to receive upfront selling commissions of up to 3.0% of the purchase price per Class T-C share re-allowed No selling commissions or dealer manager fees will be payable on the sale of Class D, Class M, Class I, Class S or Class Y shares or on shares of any class sold pursuant to the Company’s distribution reinvestment plan. Subject to the limitations described below, the Company will pay the dealer manager stockholder servicing fees for ongoing services rendered to stockholders by participating broker-dealers or by broker-dealers servicing investors’ accounts, referred to as servicing broker-dealers: • with respect to the Company’s outstanding Class T shares equal to 1.0% per annum of the aggregate NAV of its outstanding Class T shares; • with respect to the Company’s outstanding Class T-C T-C Class T-C • with respect to the Company’s outstanding Class D shares equal to 0.3% per annum of the aggregate NAV of its outstanding Class D shares; and • with respect to the Company’s outstanding Class M shares equal to 0.3% per annum of the aggregate NAV of its outstanding Class M shares. The Company will not pay a stockholder servicing fee with respect to its Class I, Class S or Class Y shares. The dealer manager will re-allow The Company will cease paying stockholder servicing fees with respect to any Class T, Class T-C Class T-C Expense Limitation Agreement The Company has entered into an expense limitation agreement with FS Real Estate Advisor and Rialto pursuant to which FS Real Estate Advisor and Rialto have agreed to waive reimbursement of or pay, on a quarterly basis, the Company’s annualized ordinary operating expenses for such quarter to the extent such expenses exceed 1.5% per annum of its average daily net assets attributable to each of its classes of common stock. The Company will repay FS Real Estate Advisor or Rialto on a quarterly basis any ordinary operating expenses previously waived or paid, but only if the reimbursement would not cause the then-current expense limitation, if any, to be exceeded. In addition, the reimbursement of expenses will be made only if payable not more than three years from the end of the fiscal quarter in which the expenses were paid or waived. Investment Activity During the nine months ended September 30, 2017, the Company purchased a $9,500 floating-rate whole mortgage loan from an affiliate of Rialto at cost. The purchase was approved by the Company’s board of directors, including all of the independent directors, in accordance with the Company’s charter. Capital Contribution by FS Real Estate Advisor and Rialto In December 2016, pursuant to a private placement, Michael C. Forman and David J. Adelman, principals of FS Investments, contributed an aggregate of $200 to purchase 8,000 common shares at the price of $25.00 per share. These individuals will not tender these common shares for repurchase as long as FS Real Estate Advisor remains the Company’s adviser. FS Investments is controlled by Mr. Forman, the Company’s president and chief executive officer and Mr. Adelman. In addition, the Company is conducting a private placement to certain individuals and entities affiliated with FS Real Estate Advisor and Rialto concurrent with the public offering, in which these parties collectively intend to purchase $50,000 of the Company’s Class S shares at a price of $25.00 per share. FS Investments and Rialto have agreed that, after the initial $50,000 is purchased, for so long as it or its affiliate is serving as the Company’s adviser or the Company’s sub-adviser,

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2017
Equity [Abstract]
Stockholders' Equity	Note 6. Stockholders’ Equity Below is a summary of transactions with respect to shares of the Company’s common stock for the nine months ended September 30, 2017: Class S Class Y Total Shares Amount Shares Amount Shares Amount Balance at beginning of period 8,000 $ 200 — $ — 8,000 $ 200 Issuance of common stock 560,000 14,000 154,720 3,868 714,720 17,868 Balance at end of period 568,000 $ 14,200 154,720 $ 3,868 722,720 $ 18,068 Share Repurchase Plan The Company has adopted a share repurchase plan, whereby on a daily basis, stockholders may request that the Company repurchase all or any portion of their shares. Class Y shares and Class S shares are not eligible to participate in the Company’s share repurchase plan until the second anniversary of the commencement of the Company’s public offering. The repurchase of shares is limited during any calendar quarter to shares whose aggregate value (based on the repurchase price per share on the day the repurchase is effected) is 5% of the combined NAV of all classes of shares then participating in the Company’s share repurchase plan as of the last day of the previous calendar quarter, which means that in any 12-month Distribution Reinvestment Plan Pursuant to the Company’s distribution reinvestment plan, holders of shares of any class of the Company’s common stock may elect to have their cash distributions reinvested in additional shares of the Company’s common stock. The purchase price for shares pursuant to the distribution reinvestment plan will be equal to the Company’s NAV per share applicable to the class of shares purchased, calculated as of the distribution date.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Note 7. Fair Value of Financial Instruments As discussed in Note 2, GAAP requires disclosure of fair value information about financial instruments, whether or not recognized in the statement of financial position, for which it is practicable to estimate that value. The following table details the carrying amount, face amount, and fair value of the financial instruments described in Note 2: September 30, 2017 December 31, 2016 Carrying Face Fair Carrying Face Fair Financial Assets Cash $ 2,245 $ 2,245 $ 2,245 $ 200 $ 200 $ 200 Loans receivable $ 38,771 $ 38,750 $ 38,871 — — — Financial Liabilities Repurchase obligations $ 22,854 $ 23,250 $ 23,250 — — — Estimates of fair value for cash are measured using observable, quoted market prices, or Level 1 inputs. Estimates of fair value for loans receivable and repurchase obligations are measured using unobservable inputs, or Level 3 inputs.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 8. Commitments and Contingencies The Company enters into contracts that contain a variety of indemnification provisions. The Company’s maximum exposure under these arrangements is unknown; however, the Company has not had prior claims or losses pursuant to these contracts. Management of FS Real Estate Advisor has reviewed the Company’s existing contracts and expects the risk of loss to the Company to be remote. The Company is not currently subject to any material legal proceedings and, to the Company’s knowledge, no material legal proceedings are threatened against the Company. From time to time, the Company may be party to certain legal proceedings in the ordinary course of business. While the outcome of any legal proceedings cannot be predicted with certainty, the Company does not expect that any such proceedings will have a material effect upon its financial condition or results of operations. See Note 2 for a discussion of the Company’s commitments to FS Real Estate Advisor and its affiliates (including FS Investments) for the reimbursement of organization and offering costs funded by FS Investments once gross proceeds from the Company’s public offering exceed $250,000.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	Note 9. Subsequent Events Distributions On October 25, 2017 and November 6, 2017, the board of directors of the Company declared distributions for October 2017 through March 2018 for each class of its outstanding common stock in the gross amount of $0.1510 per share. The net distributions for each class of outstanding common stock (which represents the gross distributions less any applicable class-specific expenses including stockholder servicing fees) have been or will be paid monthly to stockholders of record as of the monthly record dates previously determined by the Company’s board of directors. These distributions have been or will be paid in cash or reinvested in shares of the Company’s common stock for stockholders participating in the Company’s distribution reinvestment plan.

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation:
Use of Estimates	Use of Estimates:
Cash, Cash Equivalents and Restricted Cash	Cash, Cash Equivalents and Restricted Cash: The following table provides a reconciliation of cash, cash equivalents and restricted cash in the Company’s consolidated balance sheet to the total amount shown in the Company’s consolidated statement of cash flows: September 30, 2017 Cash and cash equivalents $ 245 Restricted cash 2,000 Total cash, cash equivalents and restricted cash shown in the Company’s consolidated statement of cash flows $ 2,245
Loans Receivable and Provision for Loan Losses	Loans Receivable and Provision for Loan Losses:
Deferred Financing Costs	Deferred Financing Costs:
Fair Value of Financial Instruments	Fair Value of Financial Instruments: Fair Value Measurements and Disclosures ASC Topic 820 also establishes a fair value hierarchy that prioritizes and ranks the level of market price observability used in measuring financial instruments. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument, and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination, as follows: Level 1: Generally includes only unadjusted quoted prices that are available in active markets for identical financial instruments as of the reporting date. Level 2: Pricing inputs include quoted prices in active markets for similar instruments, quoted prices in less active or inactive markets for identical or similar instruments where multiple price quotes can be obtained, and other observable inputs, such as interest rates, yield curves, credit risks, and default rates. Level 3 Pricing inputs are unobservable for the financial instruments and include situations where there is little, if any, market activity for the financial instrument. These inputs require significant judgment or estimation by management of third parties when determining fair value and generally represent anything that does not meet the criteria of Levels 1 and 2. The estimated value of each asset reported at fair value using Level 3 inputs is determined by an internal committee composed of members of senior management of FS Real Estate Advisor. Certain of the Company’s other assets are reported at fair value either (i) on a recurring basis, as of each quarter-end, The Company is also required by GAAP to disclose fair value information about financial instruments, that are not otherwise reported at fair value in the Company’s consolidated balance sheet, to the extent it is practicable to estimate a fair value for those instruments. These disclosure requirements exclude certain financial instruments and all non-financial The following methods and assumptions are used to estimate the fair value of each class of financial instruments, for which it is practicable to estimate that value: • Cash and cash equivalents: The carrying amount of cash on deposit and in money market funds approximates fair value. • Restricted cash: The carrying amount of restricted cash approximates fair value. • Loans receivable, net: The fair values for these loans were estimated by FS Real Estate Advisor based on discounted cash flow methodology taking into consideration factors, including capitalization rates, discount rates, leasing, occupancy rates, availability and cost of financing, exit plan, sponsorship, actions of other lenders, and indications of market value from other market participants. • Repurchase obligations: The fair values for these instruments were estimated based on the rate at which a similar credit facility would have currently priced.
Revenue Recognition	Revenue Recognition: ex-dividend
Organization Costs	Organization Costs:
Offering Costs	Offering Costs:
Income Taxes	Income Taxes:
Uncertainty in Income Taxes	Uncertainty in Income Taxes
Stockholder Servicing Fees	Stockholder Servicing Fees: Liabilities Class T-C, paid-in Class T-C,

Summary of Significant Accoun17

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Reconciliation of Cash, Cash Equivalents and Restricted Cash	The following table provides a reconciliation of cash, cash equivalents and restricted cash in the Company’s consolidated balance sheet to the total amount shown in the Company’s consolidated statement of cash flows: September 30, 2017 Cash and cash equivalents $ 245 Restricted cash 2,000 Total cash, cash equivalents and restricted cash shown in the Company’s consolidated statement of cash flows $ 2,245

Loans Receivable (Tables)

Loans Receivable (Tables)	9 Months Ended
	Sep. 30, 2017
Receivables [Abstract]
Summary of Details Overall Statistics for Loans Receivable Portfolio	The following table details overall statistics for the Company’s loans receivable portfolio: September 30, 2017 Number of loans 2 Principal balance $ 38,750 Net book value $ 38,771 Unfunded loan commitments (1) $ 5,060 Weighted-average yield (2) 6.00 % Weighted-average maximum maturity (years) (3) 3.3 (1) The Company may be required to provide funding when requested by the borrowers in accordance with the terms of the underlying agreements. (2) As of September 30, 2017, the Company’s floating rate loans were indexed to the US Dollar London Interbank Offered Rate, or LIBOR. (3) Maximum maturity assumes all extension options are exercised by the borrower, however loans may be repaid prior to such date.
Summary of Activity in Loan Portfolio	For the nine months ended September 30, 2017, the activity in the Company’s loan portfolio was as follows: Loans Balance at beginning of period $ — Loan fundings 38,757 Sales and repayments — Realized gain (loss) on sale of loans receivable — Accretion/amortization of discount, premium and other fees 14 Balance at end of period $ 38,771

Financing Arrangements (Tables)

Financing Arrangements (Tables)	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Summary of Information of Outstanding Financing Arrangement	The following table presents summary information with respect to the Company’s outstanding financing arrangement as of September 30, 2017: Arrangement Type of Weighted (1) Amount Amount Weighted (2) WF-1 (1) Repurchase 3.53 % $ 23,250 $ 51,750 3.3 (1) The carrying amount outstanding under the facility approximates its fair value. (2) The weighted average term is determined based on the maximum maturity of the corresponding loans, assuming all extension options are exercised by the borrowers. Each transaction under the facility has its own specific terms.

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2017
Equity [Abstract]
Summary of Common Stock Transactions	Below is a summary of transactions with respect to shares of the Company’s common stock for the nine months ended September 30, 2017: Class S Class Y Total Shares Amount Shares Amount Shares Amount Balance at beginning of period 8,000 $ 200 — $ — 8,000 $ 200 Issuance of common stock 560,000 14,000 154,720 3,868 714,720 17,868 Balance at end of period 568,000 $ 14,200 154,720 $ 3,868 722,720 $ 18,068

Fair Value of Financial Instr21

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2017
Fair Value Disclosures [Abstract]
Summary of Carrying Amount, Face Amount, and Fair Value of Financial Instruments	The following table details the carrying amount, face amount, and fair value of the financial instruments described in Note 2: September 30, 2017 December 31, 2016 Carrying Face Fair Carrying Face Fair Financial Assets Cash $ 2,245 $ 2,245 $ 2,245 $ 200 $ 200 $ 200 Loans receivable $ 38,771 $ 38,750 $ 38,871 — — — Financial Liabilities Repurchase obligations $ 22,854 $ 23,250 $ 23,250 — — —

Principal Business and Organi22

Principal Business and Organization - Additional Information (Detail) - Class T, Class T-C, Class D, Class M and Class I shares [Member] - Maximum [Member]	9 Months Ended
	Sep. 30, 2017USD ($)
Subsidiary, Sale of Stock [Line Items]
Common stock value submitted for approval under initial public offering	$ 2,750,000,000
Primary Offering [Member]
Subsidiary, Sale of Stock [Line Items]
Common stock value submitted for approval under initial public offering	2,500,000,000
Distribution Reinvestment Plan [Member]
Subsidiary, Sale of Stock [Line Items]
Common stock value submitted for approval under initial public offering	$ 250,000,000

Summary of Significant Accoun23

Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Cash and cash equivalents	$ 245	$ 200
Restricted cash	2,000
Total cash, cash equivalents and restricted cash shown in the Company's consolidated statement of cash flows	$ 2,245	$ 200

Summary of Significant Accoun24

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)	9 Months Ended	11 Months Ended
	Sep. 30, 2017	Sep. 30, 2017
Accounting Policies [Abstract]
Organization costs incurred		$ 243,000
Offering costs incurred		2,369,000
Percentage of distribution of annual REIT taxable income to stockholders to qualify as REIT	90.00%
Unrecognized interest or penalties		$ 0

Loans Receivable - Summary of D

Loans Receivable - Summary of Details Overall Statistics for Loans Receivable Portfolio (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)Loans	Dec. 31, 2016USD ($)
Loans and Leases Receivable, Net Amount [Abstract]
Number of loans | Loans	2
Principal balance	$ 38,750
Net book value	38,771	$ 0
Unfunded loan commitments	$ 5,060
Weighted-average yield	6.00%
Weighted-average maximum maturity (years)	3 years 3 months 19 days

Loans Receivable - Summary of A

Loans Receivable - Summary of Activity in Loan Portfolio (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)
Loans and Leases Receivable, Net Amount [Abstract]
Balance at beginning of period	$ 0
Loan fundings	38,757
Sales and repayments	0
Realized gain (loss) on sale of loans receivable	0
Accretion/amortization of discount, premium and other fees	14
Balance at end of period	$ 38,771

Financing Arrangements - Summar

Financing Arrangements - Summary of Information of Outstanding Financing Arrangement (Detail) - WF-1 Facility [Member] $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)
Assets Sold under Agreements to Repurchase [Line Items]
Weighted Average Rate	3.53%
Amount Outstanding	$ 23,250
Amount Available	$ 51,750
Weighted Average Term	3 years 3 months 19 days

Financing Arrangements - Additi

Financing Arrangements - Additional Information (Detail)	Aug. 30, 2017USD ($)Extension	Sep. 30, 2017USD ($)	Dec. 31, 2016USD ($)
Assets Sold under Agreements to Repurchase [Line Items]
Deferred financing costs		$ 417,000
Deferred financing costs		396,000	$ 0
WF-1 Facility [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Average borrowings		$ 1,469,000
Funding period and term of facility		3 years 3 months 19 days
Deferred financing costs	$ 417,000
Deferred financing costs		$ 396,000
Covenant description		The Repurchase Agreement and Guarantee contain representations, warranties, covenants, events of default and indemnities that are customary for agreements of their type. In addition, the Company’s subsidiary is required to maintain a certain minimum liquidity amount in a collateral account with Wells Fargo and the Company is required (i) to maintain its adjusted tangible net worth at an amount equal to or greater than (x) before it has achieved the equity capital threshold, the sum of $37,500 plus 75% of all equity capital raised by it from and after the closing date and (y) after it has achieved the equity capital threshold, the greater of (A) the sum of $37,500 plus 75% of all equity capital raised by it from and after the closing date and (B) 75% of the then-current maximum facility size; (ii) to maintain, commencing on September 30, 2018, an earnings before interest, taxes, depreciation and amortization, or EBITDA, to interest expense ratio not less than 1.50 to 1.00; (iii) to maintain a total indebtedness to tangible net worth ratio of less than 3.00 to 1.00; and (iv) to maintain (x) the sum of its liquidity plus (y) an amount equal to all cash and cash equivalents then held in certain cash collateral accounts at not less than 10% of the then-current maximum facility size.
Equity capital threshold, amount		$ 37,500,000
Equity capital threshold, percentage		75.00%
Percentage of current maximum facility		75.00%
EBITDA to interest expense ratio		150.00%
Total indebtedness to tangible net worth ratio		300.00%
Cash to be maintained in cash collateral accounts with respect to maximum borrowings		10.00%
WF-1 Facility [Member] | FS CREIT Finance WF -1 LLC [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Maximum amount of financing available	75,000,000
Increase in amount of financing available	$ 150,000,000
Funding period and term of facility	1 year
Number of extensions of funding period | Extension	3
Extension period of funding	1 year
WF-1 Facility [Member] | Minimum [Member] | FS CREIT Finance WF -1 LLC [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Increase in amount of financing available		$ 150,000,000
WF-1 Facility [Member] | Maximum [Member] | FS CREIT Finance WF -1 LLC [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Increase in amount of financing available		$ 200,000,000

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) - USD ($)	1 Months Ended	9 Months Ended	11 Months Ended
	Dec. 31, 2016	Sep. 30, 2017	Sep. 30, 2017
Related Party Transaction [Line Items]
Performance fee percentage		10.00%
Hurdle rate on average adjusted capital		1.625%
Annualized hurdle rate		6.50%
Quarterly core earnings rate		1.806%
Annualized core earnings rate		7.222%
Organization costs incurred			$ 243,000
Offering costs incurred			2,369,000
Minimum gross proceeds from public offering to reimburse expense		$ 250,000,000	$ 250,000,000
Stock issued during period	$ 200,000	17,868,000
Common Class S [Member]
Related Party Transaction [Line Items]
Base management fee		0
Performance fees on shares		$ 0
Number of common shares issued	8,000	560,000
Stock issued during period	$ 0	$ 6,000
Common Class Y [Member]
Related Party Transaction [Line Items]
Base management fee		$ 0
Number of common shares issued		154,720
Stock issued during period		$ 2,000
Maximum [Member]
Related Party Transaction [Line Items]
Organization and offering expenses reimbursement as percentage of gross proceeds from public offering		15.00%	15.00%
FS Real Estate Advisor [Member]
Related Party Transaction [Line Items]
Base management fee percentage		1.25%
Base management fee description		Accrues daily equal to 1/365th of 1.25% of the NAV for the Company's Class T, Class T-C, Class D, Class M and Class I shares for such day, payable quarterly and in arrears.
Percentage of base management fees and performance fees payable to advisor		50.00%
Payment financing costs		$ 100,000
FS Real Estate Advisor [Member] | Common Class S [Member]
Related Party Transaction [Line Items]
Stockholders servicing fee		0
FS Real Estate Advisor [Member] | Common Class Y [Member]
Related Party Transaction [Line Items]
Stockholders servicing fee		$ 0
FS Real Estate Advisor [Member] | Common Class T [Member]
Related Party Transaction [Line Items]
Dealer manager upfront selling commissions fees percentage		3.00%
Upfront dealer manager fees percentage		1.25%
Stockholders servicing fee percentage on aggregate NAV of outstanding shares		1.00%
FS Real Estate Advisor [Member] | Common Class T - C [Member]
Related Party Transaction [Line Items]
Dealer manager upfront selling commissions fees percentage		3.00%
Stockholders servicing fee percentage on aggregate NAV of outstanding shares		0.85%
Advisor stockholders servicing fee percentage on aggregate NAV of outstanding shares		0.60%
Dealer stockholders servicing fee percentage on aggregate NAV of outstanding shares		0.25%
FS Real Estate Advisor [Member] | Common Class D [Member]
Related Party Transaction [Line Items]
Stockholders servicing fee percentage on aggregate NAV of outstanding shares		0.30%
FS Real Estate Advisor [Member] | Common Class M [Member]
Related Party Transaction [Line Items]
Stockholders servicing fee percentage on aggregate NAV of outstanding shares		0.30%
FS Real Estate Advisor [Member] | Class D, Class M, Class I, Class S Or Class Y Shares [Member]
Related Party Transaction [Line Items]
Selling commissions or dealer manager fees payable		$ 0
FS Real Estate Advisor [Member] | Common Class I [Member]
Related Party Transaction [Line Items]
Stockholders servicing fee		$ 0
FS Real Estate Advisor [Member] | Class D Share [Member]
Related Party Transaction [Line Items]
Stockholder servicing fees percentage		1.25%	1.25%
FS Real Estate Advisor [Member] | Class T, Class T-C and Class M Shares [Member]
Related Party Transaction [Line Items]
Stockholder servicing fees percentage		7.25%	7.25%
FS Real Estate Advisor [Member] | Maximum [Member]
Related Party Transaction [Line Items]
Organization and offering expenses reimbursement as percentage of gross proceeds from public offering		0.75%	0.75%
FS Real Estate Advisor and Rialto [Member] | Expense Limitation Agreement [Member]
Related Party Transaction [Line Items]
Percentage of minimum operating expenses to be waived or paid		1.50%
FS Real Estate Advisor and Rialto [Member] | Private Placement [Member]
Related Party Transaction [Line Items]
Aggregate proceeds from private placement	$ 200,000
Number of common shares issued	8,000
Common stock, price per share	$ 25
FS Real Estate Advisor and Rialto [Member] | Common Class S [Member] | Private Placement [Member]
Related Party Transaction [Line Items]
Common stock allocated to investors		$ 50,000,000	$ 50,000,000
Common stock, price per share		$ 25	$ 25
Net assets		$ 750,000,000	$ 750,000,000
Stock issued during period		$ 14,000,000
FS Real Estate Advisor and Rialto [Member] | Maximum [Member] | Expense Limitation Agreement [Member]
Related Party Transaction [Line Items]
Period for which reimbursement payable		3 years
FS Real Estate Advisor and Rialto [Member] | Minimum [Member] | Common Class S [Member] | Private Placement [Member]
Related Party Transaction [Line Items]
Investments to be maintained		$ 10,000,000	$ 10,000,000
Rialto [Member]
Related Party Transaction [Line Items]
Purchase of floating-rate whole mortgage loan		$ 9,500,000

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Common Stock Transactions (Detail) - USD ($) $ in Thousands	1 Months Ended	9 Months Ended
	Dec. 31, 2016	Sep. 30, 2017
Class of Stock [Line Items]
Balance at beginning of period, amount	$ 0	$ 200
Issuance of common stock, amount	200	17,868
Balance at end of period, amount	$ 200	$ 18,110
Common Class S [Member]
Class of Stock [Line Items]
Balance at beginning of period, shares		8,000
Issuance of common stock, shares	8,000	560,000
Balance at end of period, shares	8,000	568,000
Balance at beginning of period, amount		$ 0
Issuance of common stock, amount	$ 0	6
Balance at end of period, amount	$ 0	$ 6
Common Class Y [Member]
Class of Stock [Line Items]
Issuance of common stock, shares		154,720
Balance at end of period, shares		154,720
Issuance of common stock, amount		$ 2
Balance at end of period, amount		$ 2
Common Stock [Member]
Class of Stock [Line Items]
Balance at beginning of period, shares		8,000
Issuance of common stock, shares		714,720
Balance at end of period, shares	8,000	722,720
Balance at beginning of period, amount		$ 200
Issuance of common stock, amount		17,868
Balance at end of period, amount	$ 200	$ 18,068
Common Stock [Member] | Common Class S [Member]
Class of Stock [Line Items]
Balance at beginning of period, shares		8,000
Issuance of common stock, shares		560,000
Balance at end of period, shares	8,000	568,000
Balance at beginning of period, amount		$ 200
Issuance of common stock, amount		14,000
Balance at end of period, amount	$ 200	$ 14,200
Common Stock [Member] | Common Class Y [Member]
Class of Stock [Line Items]
Issuance of common stock, shares		154,720
Balance at end of period, shares		154,720
Issuance of common stock, amount		$ 3,868
Balance at end of period, amount		$ 3,868

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2017
Class of Stock Disclosures [Abstract]
Repurchase of shares to NAV of all classes of shares, percentage	5.00%
Percentage limited to repurchase of shares to NAV of all classes of shares	20.00%

Fair Value of Financial Instr32

Fair Value of Financial Instruments - Summary of Carrying Amount, Face Amount, and Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash	$ 2,245	$ 200
Loans receivable	38,771
Repurchase obligations	22,854
Portion at Other than Fair Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash	2,245	200
Loans receivable	38,750
Repurchase obligations	23,250
Estimate of Fair Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash	2,245	$ 200
Loans receivable	38,871
Repurchase obligations	$ 23,250

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($)	9 Months Ended	11 Months Ended
	Sep. 30, 2017	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Minimum gross proceeds from public offering to reimburse expense	$ 250,000,000	$ 250,000,000

Subsequent Events - Additional

Subsequent Events - Additional Information (Detail) - $ / shares	Nov. 06, 2017	Oct. 25, 2017
Subsequent Event [Member]
Subsequent Event [Line Items]
Distributions declared per share for each class of outstanding common stock	$ 0.1510	$ 0.1510