Tremont Mortgage Trust (TRMT) 10-Q 27 Jul 21 2021 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2021	Jul. 26, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	001-38199
Entity Registrant Name	Tremont Mortgage Trust
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	82-1719041
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	796-8317
Title of 12(b) Security	Common Shares of Beneficial Interest
Trading Symbol	TRMT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Smaller Business Entity	true
Emerging Growth Company	true
Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		8,312,322
Entity Central Index Key	0001708405
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
ASSETS
Cash and cash equivalents	$ 8,273	$ 10,521
Restricted cash	95	0
Loans held for investment, net	237,697	282,246
Accrued interest receivable	796	996
Prepaid expenses and other assets	303	419
Total assets	247,164	294,182
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable, accrued liabilities and deposits	1,127	5,041
Master repurchase facility, net	155,562	200,233
Due to related persons	602	5
Total liabilities	157,291	205,279
Commitments and contingencies
Shareholders' equity:
Common shares of beneficial interest, $0.01 par value per share; 25,000,000 shares authorized; 8,312,322 and 8,302,911 shares issued and outstanding, respectively	83	83
Additional paid in capital	89,288	89,160
Cumulative net income	12,461	10,788
Cumulative distributions	(11,959)	(11,128)
Total shareholders’ equity	89,873	88,903
Total liabilities and shareholders' equity	$ 247,164	$ 294,182

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock shares authorized (in shares)	25,000,000	25,000,000
Common stock shares issued (in shares)	8,312,322	8,302,911
Common stock shares outstanding (in shares)	8,312,322	8,302,911

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
INCOME FROM INVESTMENTS:
Interest income from investments	$ 4,148	$ 4,496	$ 8,634	$ 8,780
Less: interest and related expenses	(988)	(1,368)	(2,123)	(3,125)
Income from investments, net	3,160	3,128	6,511	5,655
OTHER EXPENSES:
Base management fees	341	0	682	0
Management incentive fees	0	0	620	0
General and administrative expenses	685	524	1,328	1,064
Reimbursement of shared services expenses	206	242	344	563
Transaction related expenses	1,822	0	1,849	0
Total expenses	3,054	766	4,823	1,627
Income before income tax expense	106	2,362	1,688	4,028
Income tax expense	(8)	0	(15)	0
Net income	$ 98	$ 2,362	$ 1,673	$ 4,028
Weighted average common shares outstanding - basic (in shares)	8,218	8,177	8,215	8,173
Weighted average common shares outstanding - diluted (in shares)	8,266	8,177	8,253	8,173
Net income per common share - basic (in dollars per share)	$ 0.01	$ 0.29	$ 0.20	$ 0.49
Net income per common share - diluted (in dollars per share)	$ 0.01	$ 0.29	$ 0.20	$ 0.49

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY - USD ($) $ in Thousands	Total	Common Shares	Additional Paid In Capital	Cumulative Net Income	Cumulative Distributions
Beginning balance (in shares) at Dec. 31, 2019		8,240,000
Beginning balance at Dec. 31, 2019	$ 86,221	$ 82	$ 88,869	$ 1,937	$ (4,667)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share grants	42		42
Share repurchases (in shares)		(1,000)
Share repurchases	(2)		(2)
Net income	1,666			1,666
Distributions	(1,895)				(1,895)
Ending balance (in shares) at Mar. 31, 2020		8,239,000
Ending balance at Mar. 31, 2020	86,032	$ 82	88,909	3,603	(6,562)
Beginning balance (in shares) at Dec. 31, 2019		8,240,000
Beginning balance at Dec. 31, 2019	86,221	$ 82	88,869	1,937	(4,667)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	4,028
Ending balance (in shares) at Jun. 30, 2020		8,254,000
Ending balance at Jun. 30, 2020	88,465	$ 83	88,979	5,965	(6,562)
Beginning balance (in shares) at Mar. 31, 2020		8,239,000
Beginning balance at Mar. 31, 2020	86,032	$ 82	88,909	3,603	(6,562)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share grants (in shares)		15,000
Share grants	72	$ 1	71
Share repurchases	(1)		(1)
Net income	2,362			2,362
Ending balance (in shares) at Jun. 30, 2020		8,254,000
Ending balance at Jun. 30, 2020	$ 88,465	$ 83	88,979	5,965	(6,562)
Beginning balance (in shares) at Dec. 31, 2020	8,302,911	8,303,000
Beginning balance at Dec. 31, 2020	$ 88,903	$ 83	89,160	10,788	(11,128)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share grants (in shares)		3,000
Share grants	51		51
Share repurchases	(51)		(51)
Net income	1,575			1,575
Ending balance (in shares) at Mar. 31, 2021		8,306,000
Ending balance at Mar. 31, 2021	$ 90,529	$ 83	89,211	12,363	(11,128)
Beginning balance (in shares) at Dec. 31, 2020	8,302,911	8,303,000
Beginning balance at Dec. 31, 2020	$ 88,903	$ 83	89,160	10,788	(11,128)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	1,673
Distributions	$ (5,232)
Ending balance (in shares) at Jun. 30, 2021	8,312,322	8,312,000
Ending balance at Jun. 30, 2021	$ 89,873	$ 83	89,288	12,461	(11,959)
Beginning balance (in shares) at Mar. 31, 2021		8,306,000
Beginning balance at Mar. 31, 2021	90,529	$ 83	89,211	12,363	(11,128)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share grants (in shares)		15,000
Share grants	128		128
Share repurchases (in shares)		(9,000)
Net income	98			98
Distributions	$ (831)				(831)
Ending balance (in shares) at Jun. 30, 2021	8,312,322	8,312,000
Ending balance at Jun. 30, 2021	$ 89,873	$ 83	$ 89,288	$ 12,461	$ (11,959)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 1,673	$ 4,028
Adjustments to reconcile net income to net cash provided by operating activities:
Share based compensation	179	114
Amortization of deferred financing costs	214	241
Amortization of loan origination and exit fees	(467)	(950)
Changes in operating assets and liabilities:
Accrued interest receivable and interest advances	(72)	(575)
Prepaid expenses and other assets	116	28
Accounts payable, accrued liabilities and deposits	487	(234)
Due to related persons	597	279
Net cash provided by operating activities	2,727	2,931
CASH FLOWS FROM INVESTING ACTIVITIES:
Origination of loans held for investment	(13,199)	(25,738)
Additional funding of loans held for investment	(2,475)	(9,067)
Repayment of loans held for investment	60,962	0
Net cash provided by (used in) investing activities	45,288	(34,805)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from master repurchase facility	17,112	35,602
Repayments under master repurchase facility	(61,997)	0
Payments of deferred financing costs	0	(72)
Repurchase of common shares	(51)	(3)
Distributions	(5,232)	(1,895)
Net cash (used in) provided by financing activities	(50,168)	33,632
(Decrease) increase in cash, cash equivalents and restricted cash	(2,153)	1,758
Cash, cash equivalents and restricted cash at beginning of period	10,521	8,875
Cash, cash equivalents and restricted cash at end of period	8,368	10,633
SUPPLEMENTAL DISCLOSURES:
Interest paid	1,956	2,941
Income taxes paid	56	0
Cash and cash equivalents	8,273	10,632
Restricted cash	95	1
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows	$ 8,368	$ 10,633

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements of Tremont Mortgage Trust and its consolidated subsidiaries are unaudited. Certain information and disclosures required by U.S. generally accepted accounting principles, or GAAP, for complete financial statements have been condensed or omitted. We believe the disclosures made are adequate to make the information presented not misleading. However, the accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes contained in our Annual Report on Form 10-K for the year ended December 31, 2020, or our Annual Report. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement of results for the interim period have been included. All intercompany transactions and balances with or among our consolidated subsidiaries have been eliminated. Operating results for interim periods are not necessarily indicative of the results that may be expected for the full year. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect reported amounts. Actual results could differ from those estimates. Significant estimates in the accompanying condensed consolidated financial statements include the fair value of financial instruments. On April 26, 2021, we and RMR Mortgage Trust, or RMRM, entered into an Agreement and Plan of Merger, or the Merger Agreement, pursuant to which, on the terms and subject to the satisfaction or waiver of the conditions thereof, we have agreed to merge with and into RMRM, with RMRM continuing as the surviving entity in the merger, or the Merger. Pursuant to the terms and subject to the conditions set forth in the Merger Agreement, at the effective time of the Merger, or the Effective Time, each of our common shares of beneficial interest, $0.01 par value per share, or our common shares, issued and outstanding immediately prior to the Effective Time will be converted into the right to receive 0.52, or the Exchange Ratio, of one newly issued common share of beneficial interest, $0.001 par value per share, of RMRM, or the RMRM Common Shares, subject to adjustment as described in the Merger Agreement, with cash paid in lieu of fractional shares. Under the Merger Agreement, the Exchange Ratio is fixed and will not be adjusted to reflect changes in the market price of our common shares or the RMRM Common Shares prior to the Effective Time. Pursuant to the Merger Agreement, at the Effective Time, any unvested common share awards outstanding under our equity compensation plan generally will be converted into an unvested RMRM Common Share award under RMRM’s equity compensation plan, subject to substantially similar vesting requirements and other terms and conditions, determined by multiplying the number of our unvested common shares subject to such award by the Exchange Ratio (rounded down to the nearest whole number). The Merger and the other transactions contemplated by the Merger Agreement are collectively referred to herein as the other Transactions. We have incurred $1,849 of transaction expenses related to the Merger that are included in transaction related expenses in the condensed consolidated statements of operations for the six months ended June 30, 2021. Following the consummation of the Merger, the combined company will continue to be managed by our and RMRM’s current manager, Tremont Realty Advisors LLC, or TRA or our Manager, pursuant to the terms of RMRM’s existing management agreement with TRA. Contemporaneously with the execution of the Merger Agreement, we, RMRM and TRA entered into a letter agreement, or the TRA Letter Agreement, pursuant to which, on the terms and subject to conditions contained therein, we, RMRM and TRA have acknowledged and agreed that, effective upon consummation of the Merger, we shall have terminated our management agreement with TRA, and TRA shall have waived its right to receive payment of the termination fee pursuant to such agreement. In consideration of this waiver, RMRM has agreed that, effective upon consummation of the Merger and the termination of our management agreement with TRA, certain of the expenses TRA had paid on our behalf pursuant to such management agreement will be included in the “Termination Fee” under and as defined in RMRM’s existing management agreement with TRA. The TRA Letter Agreement further provides that such termination by us and waiver by TRA shall apply only in respect of the Merger and will not apply in respect of any competing proposal or superior proposal (as those terms are defined in the Merger Agreement) or to any other transaction or arrangement. Contemporaneously with the execution of the Merger Agreement, we entered into a voting agreement, or the Voting Agreement, with Diane Portnoy, in her capacity as a greater than 5% holder of RMRM Common Shares, pursuant to which she has agreed to vote all of the RMRM Common Shares which she is entitled to vote in favor of approval of the issuance of RMRM Common Shares to be issued in the Merger, or the Merger Share Issuance, at the special meeting of RMRM’s shareholders scheduled to be held on September 17, 2021 for that purpose, and against any competing acquisition proposal.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, No. 2016-13, Financial Instruments - Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments , which requires that entities use a new forward-looking “expected loss” model that generally will result in the earlier recognition of allowance for credit losses. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. ASU No. 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. As an emerging growth company that has opted to take advantage of the extended transition period, we expect to adopt ASU No. 2016-13 on January 1, 2023. We are currently assessing the potential impact the adoption of ASU No. 2016-13 will have on our condensed consolidated financial statements.

Loans Held for Investment

Loans Held for Investment	6 Months Ended
	Jun. 30, 2021
Receivables [Abstract]
Loans Held for Investment	Loans Held for Investment We originate first mortgage loans secured by middle market and transitional commercial real estate, or CRE, which we generally hold until maturity or, if earlier, repayment. We funded our existing loan portfolio using cash on hand and advancements under our master repurchase facility with Citibank, N.A., or Citibank, or our Master Repurchase Facility, and other debt financing. See Note 4 for further information regarding our Master Repurchase Facility. The table below provides overall statistics for our loan portfolio as of June 30, 2021 and December 31, 2020: As of June 30, 2021 As of December 31, 2020 Number of loans 13 14 Total loan commitments $ 246,029 $ 293,890 Unfunded loan commitments (1) $ 9,085 $ 12,236 Principal balance $ 236,944 $ 281,654 Unamortized net deferred origination and exit fees $ 753 $ 592 Carrying value $ 237,697 $ 282,246 Weighted average coupon rate 5.61 % 5.70 % Weighted average all in yield (2) 6.36 % 6.39 % Weighted average LIBOR floor 1.94 % 2.10 % Weighted average maximum maturity (years) (3) 2.2 2.6 Weighted average risk rating 3.0 3.2 Weighted average LTV (4) 65 % 67 % (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, excluding any repurchase debt funding applicable to the loan, and including amortization of deferred fees over the initial term of the loan. (3) Maximum maturity assumes all borrower loan extension options have been exercised, which options are subject to the borrower meeting certain conditions. (4) Loan to value ratio, or LTV, represents the initial loan amount divided by the underwritten in-place value of the underlying collateral at closing. The table below represents our loan activities during the three months ended June 30, 2021: Principal Balance Deferred Fees Carrying Value Balance at March 31, 2021 $ 259,390 $ 789 $ 260,179 Additional funding 210 — 210 Originations 13,506 (208) 13,298 Repayments (36,162) 137 (36,025) Net amortization of deferred fees — 35 35 Balance at June 30, 2021 $ 236,944 $ 753 $ 237,697 The table below represents our loan activities during the six months ended June 30, 2021: Principal Balance Deferred Fees Carrying Value Balance at December 31, 2020 $ 281,654 $ 592 $ 282,246 Additional funding 2,746 — 2,746 Originations 13,506 (307) 13,199 Repayments (60,962) 137 (60,825) Net amortization of deferred fees — 331 331 Balance at June 30, 2021 $ 236,944 $ 753 $ 237,697 In February 2021, we amended the agreement governing our loan secured by a retail property located in Coppell, TX to extend the maturity date of the loan by six months to August 12, 2021. As part of this amendment, the borrower funded an interest reserve of $500 and repaid $250 of the principal balance of the loan, thereby reducing the total loan commitment to $19,865. This amendment also includes a six month extension option contingent upon the borrower repaying an additional $250 of the principal balance and meeting certain other conditions. We collected a fee from the borrower of $99 in connection with this amendment. In February 2021, we received $24,830 of repayment proceeds from the borrower on our loan that was used to finance the acquisition of a 432 unit apartment community located in Rochester, NY, which included the $24,550 principal amount outstanding under the loan, as well as accrued interest, an exit fee and our associated legal expenses. In April 2021, we amended the agreement governing our loan secured by an office property located in Metairie, LA to extend the maturity date of the loan by six months to October 11, 2021 and to eliminate any further borrower extension rights. We collected a fee from the borrower of $45 in connection with this amendment. As of June 30, 2021, the outstanding principal amount under this loan was $17,351. In May 2021, we originated a first mortgage loan of $15,250 to refinance an office property with 125,000 square feet located in Westminster, CO. This loan requires the borrower to pay interest at the floating rate of LIBOR plus a premium of 375 basis points per annum. This floating rate loan includes an initial funding of $13,506 and a future funding allowance of $1,744 for tenant improvements, leasing commissions and capital expenditures and has a three year initial term with two, one-year extension options, subject to the borrower meeting certain conditions. Also in May 2021, we received $36,726 of repayment proceeds from the borrower under our loan secured by an industrial facility located in Barrington, NJ, which included the $36,162 principal amount outstanding under the loan, as well as accrued interest, an exit fee and our associated legal expenses. In June 2021, at the borrower's request, we amended the agreement governing our loan secured by an office property located in Houston, TX to extend the maturity date of the loan by 45 days to August 10, 2021. As of June 30, 2021, the outstanding principal amount under this loan was $14,489. In July 2021, the borrower under our loan secured by a retail property located in Paradise Valley, AZ notified us that the property is expected to be sold during the third quarter of 2021. Upon sale, we expect to be repaid the principal amount outstanding under the loan, as well as accrued interest, an exit fee and our associated legal expenses. As of June 30, 2021, the outstanding principal amount under this loan was $11,197. Also in July 2021, the borrower under our loan secured by a multifamily property located in Houston, TX notified us that the property is expected to be sold during the third quarter of 2021. Upon sale, we expect to be repaid the principal amount outstanding under the loan, as well as accrued interest, an exit fee and our associated legal expenses. As of June 30, 2021, the outstanding principal amount under this loan was $27,929. Also in July 2021, the borrower under our loan secured by an office property located in Dublin, OH notified us that the property is expected to be refinanced during the third quarter of 2021. Upon refinance, we expect to be repaid the principal amount outstanding under the loan, as well as accrued interest, an exit fee and our associated legal expenses. As of June 30, 2021 the outstanding principal under this loan was $21,556. The tables below detail the property type and geographic location of the properties securing the loans in our portfolio as of June 30, 2021 and December 31, 2020: June 30, 2021 December 31, 2020 Property Type Number of Loans Carrying Value Percentage of Value Number of Loans Carrying Value Percentage of Value Office 6 $ 109,208 46 % 5 $ 94,412 34 % Multifamily 2 46,276 19 % 3 70,417 25 % Industrial 1 13,960 6 % 2 49,209 17 % Retail 3 44,284 19 % 3 44,298 16 % Hotel 1 23,969 10 % 1 23,910 8 % 13 $ 237,697 100 % 14 $ 282,246 100 % June 30, 2021 December 31, 2020 Geographic Location Number of Loans Carrying Value Percentage of Value Number of Loans Carrying Value Percentage of Value East 3 $ 46,321 20 % 5 $ 105,695 37 % South 5 104,216 44 % 5 104,256 37 % Midwest 3 62,484 26 % 3 61,185 22 % West 2 24,676 10 % 1 11,110 4 % 13 $ 237,697 100 % 14 $ 282,246 100 % Loan Risk Ratings We evaluate each of our loans for impairment at least quarterly by assessing a variety of risk factors in relation to each loan and assigning a risk rating to each loan based on those factors. The higher the number, the greater the risk level. See our Annual Report for more information regarding our loan risk ratings. The following table allocates the carrying value of our loan portfolio at June 30, 2021 and December 31, 2020 based on our internal risk rating policy: June 30, 2021 December 31, 2020 Risk Rating Number of Loans Carrying Value Number of Loans Carrying Value 1 — $ — — $ — 2 3 67,567 3 77,553 3 6 98,921 4 76,343 4 4 71,209 7 128,350 5 — — — — 13 $ 237,697 14 $ 282,246 The weighted average risk rating of our loans by carrying value was 3.0 and 3.2 as of June 30, 2021 and December 31, 2020, respectively. The COVID-19 pandemic has negatively impacted some of our borrowers’ business operations or tenants, particularly in the cases of our retail and hospitality collateral, some of which are the types of properties that have been most negatively impacted by the pandemic. We expect that those negative impacts may continue and may apply to other borrowers and/or their tenants. Further, although economic activity in the United States has improved significantly from the low points during the pandemic to date, certain industries have not recovered to their pre-pandemic positions. Therefore, certain of our borrowers’ business plans will likely take longer to execute than initially expected and certain of our borrowers may be unable to pay their debt service obligations owed and due to us as currently scheduled or at all. As of June 30, 2021, we had four loans representing 30% of the carrying value of our loan portfolio with a loan risk rating of “4” or “higher risk", compared to seven loans representing 45% of the carrying value of our loan portfolio as of December 31, 2020. We did not have any impaired loans or nonaccrual loans as of June 30, 2021 or December 31, 2020. As of July 26, 2021, all of our borrowers had paid all of their debt service obligations owed and due to us and none of the loans included in our investment portfolio were in default.

Debt Agreements

Debt Agreements	6 Months Ended
	Jun. 30, 2021
Debt Disclosure [Abstract]
Debt Agreements	Debt Agreements The table below summarizes our debt agreements as of June 30, 2021 and December 31, 2020: Debt Obligation Weighted Average Collateral Maximum Facility Size Principal Balance Carrying Value Coupon Rate Remaining Maturity (1) (years) Principal Balance Fair Value (2) June 30, 2021: Master Repurchase Facility $ 213,482 $ 156,167 $ 155,562 L + 2.00% 0.6 $ 236,944 $ 233,032 December 31, 2020: Master Repurchase Facility $ 213,482 $ 201,051 $ 200,233 L + 2.00% 1.1 $ 281,654 $ 279,381 (1) The weighted average remaining maturity is determined using the current maturity date of the corresponding loans, assuming no borrower loan extension options have been exercised. Our Master Repurchase Facility matures on November 6, 2022. (2) See Note 5 for further discussion of our financial assets and liabilities not carried at fair value. Master Repurchase Facility Under our 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 is equal to LIBOR plus a premium of 200 to 250 basis points, determined by the yield of the purchased asset and the property type of the purchased asset’s real estate collateral. Citibank has the discretion under our Master Repurchase Agreement to make advancements at margins higher than 75% and at premiums of less than 200 basis points. The weighted average interest rate for advancements under our Master Repurchase Facility was 1.98% and 2.47% f or the three months ended June 30, 2021, and 2020, respectively, and 2.18% and 2.97% for the six months ended June 30, 2021 and 2020, respectively. At June 30, 2021, we had approximately $605 of capitalized financing costs, net of amortization. In connection with our Master Repurchase Agreement, we entered into a guaranty, or, as amended, the 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 Master Repurchase Agreement. The Guaranty also requires us to comply with customary financial covenants, which include the maintenance of a minimum tangible net worth, minimum cash liquidity, a total indebtedness to tangible net worth ratio and a minimum interest coverage ratio. These maintenance provisions provide Citibank with the right, in certain circumstances related to a credit event, as defined in our Master Repurchase Agreement, to re-determine the value of purchased assets. Where a decline in the value of purchased assets has resulted in a margin deficit, Citibank may require us to eliminate such margin deficit through a combination of purchased asset repurchases and cash transfers to Citibank, subject to Citibank's approval. As of June 30, 2021, we have not received a margin call under our Master Repurchase Agreement. Our Master Repurchase Agreement also provides for acceleration of the date of repurchase of the purchased assets and Citibank’s liquidation of the purchased assets upon the occurrence and continuation of certain events of default, including a change of control of us, which includes our Manager, ceasing to act as our sole manager or to be a wholly owned subsidiary of The RMR Group LLC, or RMR LLC. As of June 30, 2021, we were in compliance with all of the covenants and ot her terms under our Master Repurchase Agreement and the Guaranty.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2021
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments ASC Topic 820, Fair Value Measurements , establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level I), and the lowest priority to unobservable inputs (Level III). A financial asset’s or financial liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The carrying values of cash and cash equivalents, restricted cash and accounts payable approximate their fair values due to the short term nature of these financial instruments. The outstanding principal balances under our Master Repurchase Facility approximate their fair values, as interest is based on floating rates based on LIBOR plus a spread, and the spread is consistent with those demanded by the market. We estimate the fair values of our loans held for investment and outstanding principal balances under our Master Repurchase Facility by using Level III inputs, including discounted cash flow analyses and currently prevailing market terms as of the measurement date, determined by significant unobservable market inputs, which include holding periods, discount rates based on LTV, property types and loan pricing expectations which are corroborated by a comparison with other market participants to determine the appropriate market spread to add to the one month LIBOR (Level III inputs as defined in the fair value hierarchy under GAAP). The table below provides information regarding financial assets and liabilities not carried at fair value on a recurring basis in our condensed consolidated balance sheets: June 30, 2021 December 31, 2020 Carrying Value Fair Value Carrying Value Fair Value Financial assets Loans held for investment $ 237,697 $ 233,032 $ 282,246 $ 279,381 Financial liabilities Master Repurchase Facility $ 155,562 $ 155,962 $ 200,233 $ 199,936

Shareholders' Equity

Shareholders' Equity	6 Months Ended
	Jun. 30, 2021
Equity [Abstract]
Shareholders' Equity	Shareholders' Equity Common Share Awards and Repurchases We have common shares available for issuance under the terms of our 2017 Amended and Restated Equity Compensation Plan, or the 2017 Plan. The values of the share awards are based upon the closing price of our common shares on The Nasdaq Stock Market LLC, or Nasdaq, on the date of award. The common shares awarded to our Trustees vest immediately. The common shares awarded to our officers and other employees of our Manager and of RMR LLC vest in five equal annual installments beginning on the date of award. We recognize the value of awarded shares in general and administrative expenses ratably over the vesting period. We recognize share forfeitures as they occur. On February 19, 2021, in accordance with our Trustee compensation arrangements, we awarded one of our Trustees 3,000 of our common shares, valued at $4.81 per common share, the closing price of our common shares on the Nasdaq that day. On May 27, 2021, in accordance with our Trustee compensation arrangements, we awarded to each of our five Trustees 3,000 of our common shares, valued at $6.11 per common share, the closing price of our common shares on the Nasdaq that day. On June 30, 2021, we purchased 8,589 of our common shares, valued at $6.07 per common share, the closing price of our common shares on Nasdaq on that day, from our former Trustee and officer and from a former officer and employee of RMR LLC in satisfaction of tax withholding and payment obligations in connection with the vesting of awards of our common shares. Distributions For the six months ended June 30, 2021, we declared and paid a distribution to common shareholders as follows: Record Date Payment Date Distribution Per Share Total Distribution December 17, 2020 January 15, 2021 $ 0.53 $ 4,401 April 26, 2021 May 20, 2021 0.10 831 $ 0.63 $ 5,232 Our distribution paid on January 15, 2021 is treated for federal income tax purposes as having been paid and received on December 31, 2020. On July 15, 2021, we declared a quarterly distribution of $0.10 per common share, or approximately $831 in aggregate, to shareholders of record as of July 26, 2021. We expect to pay this distribution on or about August 19, 2021.

Management Agreement with our M

Management Agreement with our Manager	6 Months Ended
	Jun. 30, 2021
Related Party Transactions [Abstract]
Management Agreement with our Manager	Management Agreement with our Manager We have no employees. The personnel and various services we require to operate our business are provided to us by our Manager pursuant to a management agreement, which provides for the day to day management of our operations by our Manager, subject to the oversight and direction of our Board of Trustees. We recognized base management fees of $341 and no management incentive fees for the three months ended June 30, 2021, and base management fees of $682 and management incentive fees of $620 for the six months ended June 30, 2021. Our Manager previously waived any base management or management incentive fees otherwise due and payable by us under our management agreement for the period beginning July 1, 2018 until December 31, 2020. As a result, we did not recognize any base management or management incentive fees for the three or six months ended June 30, 2020. If our Manager had not waived these base management and management incentive fees, we would have recognized $323 and $643 of base management fees for the three and six months ended June 30, 2020 and $36, respectively, of management incentive fees would have been paid or payable for both the three and six months ended June 30, 2020. Our Manager, and not us, is responsible for the costs of its employees who provide services to us, including the cost of our Manager’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. We are required to pay or to reimburse our Manager and its affiliates for all other costs and expenses of our operations. Some of these overhead, professional and other services are provided by RMR LLC pursuant to a shared services agreement between our Manager and RMR LLC. We reimburse our Manager for shared services costs our Manager pays to RMR LLC. These reimbursements include an allocation of the cost of personnel employed by RMR LLC and our share of RMR LLC’s costs for providing our internal audit function. These shared services costs are subject to approval by a majority of our Independent Trustees at least annually. We incurred shared services costs of $241 and $280 payable to our Manager for the three months ended June 30, 2021 and 2020, respectively, and $417 and $638 for the six months ended June 30, 2021 and 2020, respectively. We include these amounts in reimbursement of shared services expenses or general and administrative expenses, as applicable, in our condensed consolidated statements of operations. Pursuant to the TRA Letter Agreement, on the terms and subject to conditions contained therein, we and our Manager agreed that, effective upon consummation of the Merger, we shall have terminated our management agreement, and our Manager shall have waived its right to receive payment of the termination fee due on account thereof. Following termination of the management agreement in accordance with the TRA Letter Agreement, pro rata base management and management incentive fees will continue to be payable under the terms of the management agreement. See Note 1 for further information regarding the TRA Letter Agreement and the Merger.

Related Person Transactions

Related Person Transactions	6 Months Ended
	Jun. 30, 2021
Related Party Transactions [Abstract]
Related Person Transactions	Related Person Transactions We have relationships and historical and continuing transactions with our Manager, RMR LLC, The RMR Group Inc., or RMR Inc., and others related to them, including other companies to which RMR LLC or its subsidiaries provide management services and some of which have trustees, directors or officers who are also our Trustees or officers. Our Manager is a subsidiary of RMR LLC, which is a majority owned subsidiary of RMR Inc., and RMR Inc. is the managing member of RMR LLC. RMR LLC provides certain shared services to our Manager that are applicable to us, and we reimburse our Manager for the amounts it pays for those services. One of our Managing Trustees, Adam Portnoy, is the sole trustee, an officer and the controlling shareholder of ABP Trust, which is the controlling shareholder of RMR Inc., and he is also a director of our Manager, a managing director and the president and chief executive officer of RMR Inc., and an officer and employee of RMR LLC. David M. Blackman served as our other Managing Trustee and our President and Chief Executive Officer, and as a director and the president, and chief executive officer of our Manager until his resignation from those positions on December 31, 2020 in connection with his retirement. Following Mr. Blackman’s resignation, Matthew P. Jordan was appointed as our other Managing Trustee and Thomas J. Lorenzini was appointed as our President, each effective January 1, 2021. Also effective January 1, 2021, Mr. Jordan was appointed as a director and the president and chief executive officer of our Manager. Mr. Jordan is an officer of RMR Inc. and an officer and employee of RMR LLC and Mr. Lorenzini is an officer and employee of our Manager and an officer of RMR LLC. In addition, each of our other officers is also an officer and/or employee of our Manager or RMR LLC. Our Independent Trustees also serve as independent directors or independent trustees of other public companies to which RMR LLC or its subsidiaries provide management services. Adam Portnoy serves as the chair of the boards of trustees and boards of directors of several of these public companies and as a managing director or managing trustee of all of these companies. Other officers of RMR LLC, including Mr. Jordan and certain of our other officers and officers of our Manager, serve as managing trustees, managing directors or officers of certain of these companies. Our Manager, Tremont Realty Advisors LLC . We have a management agreement with our Manager to provide management services to us. See Note 7 for further information regarding our management agreement with our Manager. Our Manager is our largest shareholder and, as of June 30, 2021, owned 1,600,100 of our common shares, or approximately 19.2% of our outstanding common shares. RMR Mortgage Trust . As described further in Note 1, on April 26, 2021, we and RMRM entered into the Merger Agreement. Adam D. Portnoy and Matthew P. Jordan, our Managing Trustees, are also RMRM’s managing trustees. Thomas J. Lorenzini, our President, also serves as president of RMRM, and G. Douglas Lanois, our Chief Financial Officer and Treasurer, also serves as chief financial officer and treasurer of RMRM. John L. Harrington serves as one of our Independent Trustees and is also an independent trustee of RMRM, and Joseph L. Morea, one of our Independent Trustees, previously served as an independent trustee of RMRM; Jeffrey P. Somers previously served as one of our Independent Trustees and is currently an independent trustee of RMRM. See Note 1 for further information regarding the Merger and the other Transactions. For further information about these and other such relationships and certain other related person transactions, refer to our Annual Report and to our Current Report on Form 8-K dated April 26, 2021.

Income Taxes

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

Weighted Average Common Shares

Weighted Average Common Shares	6 Months Ended
	Jun. 30, 2021
Earnings Per Share [Abstract]
Weighted Average Common Shares	Weighted Average Common SharesUnvested share awards and other potentially dilutive common share issuances, and the related impact on earnings, are considered when calculating diluted net income per share. The table below provides a reconciliation of the weighted average number of common shares used in the calculation of basic and diluted net income per share (amounts in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2021 2020 2021 2020 Weighted average common shares for basic net income per share 8,218 8,177 8,215 8,173 Effect of dilutive securities: unvested share awards (1) 48 — 38 — Weighted average common shares for diluted net income per share 8,266 8,177 8,253 8,173 (1) For the three and six months ended June 30, 2020, 105 and 64 unvested common shares, respectively, were not included in the calculation of diluted earnings per share because to do so would have been antidilutive.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Unfunded Loan Commitments As of June 30, 2021, we had unfunded loan commitments of $9,085 related to our loans held for investment that are not reflected in our condensed consolidated balance sheets. These unfunded loan commitments had a weighted average initial maturity of 0.8 years as of June 30, 2021. See Note 3 for further information related to our loans held for investment. Secured Borrowings

Legal Proceedings and Claims

Legal Proceedings and Claims	6 Months Ended
	Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Legal Proceedings and Claims	Legal Proceedings and Claims As of July 26, 2021, three lawsuits have been filed by purported shareholders of ours in connection with the proposed Merger between us and RMRM. The lawsuits were brought by the plaintiffs individually and are captioned Bishins v. Tremont Mortgage Trust, et al., Case No. 1:21-cv-05435 (S.D.N.Y., filed June 21, 2021), Lee v. Tremont Mortgage Trust, et al., Case No. 1:21-cv-05618 (S.D.N.Y., filed June 29, 2021) and Merewether v. Tremont Mortgage Trust, et al., Case No. 1:21-cv-13116 (D.N.J., filed June 29, 2021), each, a complaint, and collectively, the complaints. The Bishins, Lee and Merewether complaints name as defendants us and our Board of Trustees. The Bishins and Lee complaints also name RMRM as a defendant. The plaintiffs generally assert claims under Section 14(a) and Section 20(a) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, contending that the registration statement on Form S-4 filed with the Securities and Exchange Commission, or SEC, on June 9, 2021, and serving as the preliminary joint proxy statement/prospectus, omitted or misrepresented material information regarding the proposed merger between us and RMRM. The complaints generally seek injunctive relief preventing us and RMRM from consummating the Merger, rescission or rescissory damages, an award of plaintiffs’ costs, including attorneys’ fees and expenses, and such other relief the court may deem just and proper. The Bishins complaint also seeks a declaration that the Merger Agreement was entered into in breach of the Bishins individual defendants’ fiduciary duties and is therefore unlawful and unenforceable. The Lee and Merewether complaints additionally seek a declaration that the defendants violated Sections 14(a) and 20(a) of the Exchange Act and an order directing the defendants to disseminate a registration statement that does not contain any untrue or misleading statements of material fact. We and our Board of Trustees deny that we have violated any laws or breached any duties to our shareholders and believe the claims asserted in the complaints are without merit.

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	The accompanying condensed consolidated financial statements of Tremont Mortgage Trust and its consolidated subsidiaries are unaudited. Certain information and disclosures required by U.S. generally accepted accounting principles, or GAAP, for complete financial statements have been condensed or omitted. We believe the disclosures made are adequate to make the information presented not misleading. However, the accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes contained in our Annual Report on Form 10-K for the year ended December 31, 2020, or our Annual Report. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement of results for the interim period have been included. All intercompany transactions and balances with or among our consolidated subsidiaries have been eliminated. Operating results for interim periods are not necessarily indicative of the results that may be expected for the full year.
Use of Estimates	The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect reported amounts. Actual results could differ from those estimates. Significant estimates in the accompanying condensed consolidated financial statements include the fair value of financial instruments.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, No. 2016-13, Financial Instruments - Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments , which requires that entities use a new forward-looking “expected loss” model that generally will result in the earlier recognition of allowance for credit losses. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. ASU No. 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. As an emerging growth company that has opted to take advantage of the extended transition period, we expect to adopt ASU No. 2016-13 on January 1, 2023. We are currently assessing the potential impact the adoption of ASU No. 2016-13 will have on our condensed consolidated financial statements.

Loans Held for Investment (Tabl

Loans Held for Investment (Tables)	6 Months Ended
	Jun. 30, 2021
Receivables [Abstract]
Schedule of Loans	The table below provides overall statistics for our loan portfolio as of June 30, 2021 and December 31, 2020: As of June 30, 2021 As of December 31, 2020 Number of loans 13 14 Total loan commitments $ 246,029 $ 293,890 Unfunded loan commitments (1) $ 9,085 $ 12,236 Principal balance $ 236,944 $ 281,654 Unamortized net deferred origination and exit fees $ 753 $ 592 Carrying value $ 237,697 $ 282,246 Weighted average coupon rate 5.61 % 5.70 % Weighted average all in yield (2) 6.36 % 6.39 % Weighted average LIBOR floor 1.94 % 2.10 % Weighted average maximum maturity (years) (3) 2.2 2.6 Weighted average risk rating 3.0 3.2 Weighted average LTV (4) 65 % 67 % (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, excluding any repurchase debt funding applicable to the loan, and including amortization of deferred fees over the initial term of the loan. (3) Maximum maturity assumes all borrower loan extension options have been exercised, which options are subject to the borrower meeting certain conditions. (4) Loan to value ratio, or LTV, represents the initial loan amount divided by the underwritten in-place value of the underlying collateral at closing. The table below represents our loan activities during the three months ended June 30, 2021: Principal Balance Deferred Fees Carrying Value Balance at March 31, 2021 $ 259,390 $ 789 $ 260,179 Additional funding 210 — 210 Originations 13,506 (208) 13,298 Repayments (36,162) 137 (36,025) Net amortization of deferred fees — 35 35 Balance at June 30, 2021 $ 236,944 $ 753 $ 237,697 The table below represents our loan activities during the six months ended June 30, 2021: Principal Balance Deferred Fees Carrying Value Balance at December 31, 2020 $ 281,654 $ 592 $ 282,246 Additional funding 2,746 — 2,746 Originations 13,506 (307) 13,199 Repayments (60,962) 137 (60,825) Net amortization of deferred fees — 331 331 Balance at June 30, 2021 $ 236,944 $ 753 $ 237,697 The tables below detail the property type and geographic location of the properties securing the loans in our portfolio as of June 30, 2021 and December 31, 2020: June 30, 2021 December 31, 2020 Property Type Number of Loans Carrying Value Percentage of Value Number of Loans Carrying Value Percentage of Value Office 6 $ 109,208 46 % 5 $ 94,412 34 % Multifamily 2 46,276 19 % 3 70,417 25 % Industrial 1 13,960 6 % 2 49,209 17 % Retail 3 44,284 19 % 3 44,298 16 % Hotel 1 23,969 10 % 1 23,910 8 % 13 $ 237,697 100 % 14 $ 282,246 100 % June 30, 2021 December 31, 2020 Geographic Location Number of Loans Carrying Value Percentage of Value Number of Loans Carrying Value Percentage of Value East 3 $ 46,321 20 % 5 $ 105,695 37 % South 5 104,216 44 % 5 104,256 37 % Midwest 3 62,484 26 % 3 61,185 22 % West 2 24,676 10 % 1 11,110 4 % 13 $ 237,697 100 % 14 $ 282,246 100 % June 30, 2021 December 31, 2020 Risk Rating Number of Loans Carrying Value Number of Loans Carrying Value 1 — $ — — $ — 2 3 67,567 3 77,553 3 6 98,921 4 76,343 4 4 71,209 7 128,350 5 — — — — 13 $ 237,697 14 $ 282,246

Debt Agreements (Tables)

Debt Agreements (Tables)	6 Months Ended
	Jun. 30, 2021
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	The table below summarizes our debt agreements as of June 30, 2021 and December 31, 2020: Debt Obligation Weighted Average Collateral Maximum Facility Size Principal Balance Carrying Value Coupon Rate Remaining Maturity (1) (years) Principal Balance Fair Value (2) June 30, 2021: Master Repurchase Facility $ 213,482 $ 156,167 $ 155,562 L + 2.00% 0.6 $ 236,944 $ 233,032 December 31, 2020: Master Repurchase Facility $ 213,482 $ 201,051 $ 200,233 L + 2.00% 1.1 $ 281,654 $ 279,381 (1) The weighted average remaining maturity is determined using the current maturity date of the corresponding loans, assuming no borrower loan extension options have been exercised. Our Master Repurchase Facility matures on November 6, 2022.

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2021
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The table below provides information regarding financial assets and liabilities not carried at fair value on a recurring basis in our condensed consolidated balance sheets: June 30, 2021 December 31, 2020 Carrying Value Fair Value Carrying Value Fair Value Financial assets Loans held for investment $ 237,697 $ 233,032 $ 282,246 $ 279,381 Financial liabilities Master Repurchase Facility $ 155,562 $ 155,962 $ 200,233 $ 199,936

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2021
Equity [Abstract]
Schedule of Distributions	For the six months ended June 30, 2021, we declared and paid a distribution to common shareholders as follows: Record Date Payment Date Distribution Per Share Total Distribution December 17, 2020 January 15, 2021 $ 0.53 $ 4,401 April 26, 2021 May 20, 2021 0.10 831 $ 0.63 $ 5,232

Weighted Average Common Shares

Weighted Average Common Shares (Tables)	6 Months Ended
	Jun. 30, 2021
Earnings Per Share [Abstract]
Schedule of Weighted Average Number of Common Shares	The table below provides a reconciliation of the weighted average number of common shares used in the calculation of basic and diluted net income per share (amounts in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2021 2020 2021 2020 Weighted average common shares for basic net income per share 8,218 8,177 8,215 8,173 Effect of dilutive securities: unvested share awards (1) 48 — 38 — Weighted average common shares for diluted net income per share 8,266 8,177 8,253 8,173 (1) For the three and six months ended June 30, 2020, 105 and 64 unvested common shares, respectively, were not included in the calculation of diluted earnings per share because to do so would have been antidilutive.

Basis of Presentation (Details)

Basis of Presentation (Details) - USD ($) $ / shares in Units, $ in Thousands	Apr. 26, 2021	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Business Acquisition [Line Items]
Common stock, par value (in dollars per share)		$ 0.01		$ 0.01		$ 0.01
Transaction related expenses		$ 1,822	$ 0	$ 1,849	$ 0
Merger Agreement
Business Acquisition [Line Items]
Common stock, par value (in dollars per share)	$ 0.01
Exchange ratio of shares issued per acquiree share ( in shares)	0.52
Voting agreement, ownership percent threshold	5.00%
Merger Agreement | RMR Mortgage Trust
Business Acquisition [Line Items]
Common stock, par value (in dollars per share)	$ 0.001

Loans Held for Investment - Loa

Loans Held for Investment - Loan Portfolio Statistics (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021USD ($)loan	Dec. 31, 2020USD ($)loan	Mar. 31, 2021USD ($)
Receivables [Abstract]
Number of Loans | loan	13	14
Total loan commitments	$ 246,029	$ 293,890
Unfunded loan commitments	9,085	12,236
Principal balance	236,944	281,654	$ 259,390
Unamortized net deferred origination and exit fees	753	592	$ 789
Carrying value	$ 237,697	$ 282,246
Weighted average coupon rate	5.61%	5.70%
Weighted average all in yield	6.36%	6.39%
Weighted average LIBOR floor	1.94%	2.10%
Weighted average maximum maturity (years)	2 years 2 months 12 days	2 years 7 months 6 days
Weighted average risk rating	3	3.2
Weighted average LTV	0.65	0.67

Loans Held for Investment - L_2

Loans Held for Investment - Loan Activity (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	6 Months Ended
	Feb. 28, 2021	Jun. 30, 2021	Jun. 30, 2021
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward]
Principal, beginning balance		$ 259,390	$ 281,654
Deferred fees, beginning balance		789	592
Carrying value, beginning balance		260,179	282,246
Additional funding		210	2,746
Principal, originations		13,506	13,506
Deferred fees, loan funding	$ (99)	(208)	(307)
Net book value, loan funding		13,298	13,199
Repayments		(36,162)	(60,962)
Deferred fees, repayments		137	137
Repayments, net		(36,025)	(60,825)
Net amortization of deferred fees		35	331
Principal, ending balance		236,944	236,944
Deferred fees, ending balance		753	753
Carrying value, ending balance		$ 237,697	$ 237,697

Loans Held for Investment - Nar

Loans Held for Investment - Narrative (Details) ft² in Thousands, $ in Thousands	1 Months Ended			3 Months Ended	6 Months Ended		12 Months Ended
	May 31, 2021USD ($)ft²trustee	Apr. 30, 2021USD ($)	Feb. 28, 2021USD ($)apartment_unit	Jun. 30, 2021USD ($)	Jun. 30, 2021USD ($)loan	Jun. 30, 2020loan	Dec. 31, 2020USD ($)loan	Jul. 31, 2021USD ($)	Mar. 31, 2021USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Deferred fees, loan funding			$ 99	$ 208	$ 307
Committed principal amount				$ 236,944	$ 236,944		$ 281,654		$ 259,390
Weighted average risk rating				3	3		3.2
Number of Loans | loan					13		14
Percentage of Value				100.00%	100.00%		100.00%
Risk Rating, 4
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | loan					4	7	7
Percentage of Value				30.00%	30.00%		45.00%
Coppell, TX
Accounts, Notes, Loans and Financing Receivable [Line Items]
Period of extension			6 months
Interest reserve funded by borrower			$ 500
Repaid principal amount			250
Proceeds from reduce loan commitment			19,865
Rochester, NY
Accounts, Notes, Loans and Financing Receivable [Line Items]
Proceeds from repayment			$ 24,830
Number of apartment units | apartment_unit			432,000
Committed principal amount			$ 24,550
Metairie, LA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Period of extension		6 months
Deferred fees, loan funding		$ 45
Committed principal amount		$ 17,351
Westminster, Colorado | First Mortgage Bridge Loans | Office Property
Accounts, Notes, Loans and Financing Receivable [Line Items]
Committed principal amount	$ 15,250
Area of property | ft²	125
Initial term	3 years
Number of extension options | trustee	2
Extension term	1 year
Westminster, Colorado | First Mortgage Bridge Loans | Office Property | Initial Funding
Accounts, Notes, Loans and Financing Receivable [Line Items]
Committed principal amount	$ 13,506
Westminster, Colorado | First Mortgage Bridge Loans | Office Property | Future Funding Allowance
Accounts, Notes, Loans and Financing Receivable [Line Items]
Committed principal amount	$ 1,744
Westminster, Colorado | LIBOR | First Mortgage Bridge Loans | Office Property
Accounts, Notes, Loans and Financing Receivable [Line Items]
Basis spread on variable rate	3.75%
Barrington, NJ
Accounts, Notes, Loans and Financing Receivable [Line Items]
Proceeds from repayment	$ 36,726
Committed principal amount	$ 36,162
Houston, TX
Accounts, Notes, Loans and Financing Receivable [Line Items]
Period of extension	45 days
Committed principal amount	$ 14,489			$ 27,929	$ 27,929
Paradise Valley, AZ | Subsequent Event
Accounts, Notes, Loans and Financing Receivable [Line Items]
Committed principal amount								$ 11,197
Dublin, OH
Accounts, Notes, Loans and Financing Receivable [Line Items]
Committed principal amount				$ 21,556	$ 21,556

Loans Held for Investment - L_3

Loans Held for Investment - Loan Portfolio (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021USD ($)loan	Dec. 31, 2020USD ($)loan	Mar. 31, 2021USD ($)
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	13	14
Carrying value | $	$ 237,697	$ 282,246	$ 260,179
Percentage of Value	100.00%	100.00%
East
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	3	5
Carrying value | $	$ 46,321	$ 105,695
Percentage of Value	20.00%	37.00%
South
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	5	5
Carrying value | $	$ 104,216	$ 104,256
Percentage of Value	44.00%	37.00%
Midwest
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	3	3
Carrying value | $	$ 62,484	$ 61,185
Percentage of Value	26.00%	22.00%
West
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	2	1
Carrying value | $	$ 24,676	$ 11,110
Percentage of Value	10.00%	4.00%
Office
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	6	5
Carrying value | $	$ 109,208	$ 94,412
Percentage of Value	46.00%	34.00%
Multifamily
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	2	3
Carrying value | $	$ 46,276	$ 70,417
Percentage of Value	19.00%	25.00%
Industrial
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	1	2
Carrying value | $	$ 13,960	$ 49,209
Percentage of Value	6.00%	17.00%
Retail
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	3	3
Carrying value | $	$ 44,284	$ 44,298
Percentage of Value	19.00%	16.00%
Hotel
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	1	1
Carrying value | $	$ 23,969	$ 23,910
Percentage of Value	10.00%	8.00%

Loans Held for Investment - L_4

Loans Held for Investment - Loan Risk Ratings (Details) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2021USD ($)loan	Jun. 30, 2020loan	Dec. 31, 2020USD ($)loan	Mar. 31, 2021USD ($)
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	13		14
Carrying value | $	$ 237,697		$ 282,246	$ 260,179
Risk Rating, 1
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	0		0
Carrying value | $	$ 0		$ 0
Risk Rating, 2
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	3		3
Carrying value | $	$ 67,567		$ 77,553
Risk Rating, 3
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	6		4
Carrying value | $	$ 98,921		$ 76,343
Risk Rating, 4
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	4	7	7
Carrying value | $	$ 71,209		$ 128,350
Risk Rating, 5
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan	0		0
Carrying value | $	$ 0		$ 0

Debt Agreements - Schedule of D

Debt Agreements - Schedule of Debt (Details) - Master Repurchase Facility - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Maximum Facility Size	$ 213,482	$ 213,482
Principal Balance	156,167	201,051
Carrying Value	$ 155,562	$ 200,233
Weighted Average, Remaining Maturity (years)	7 months 6 days	1 year 1 month 6 days
Collateral, principal balance	$ 236,944	$ 281,654
Collateral, Fair Value	$ 233,032	$ 279,381
LIBOR
Debt Instrument [Line Items]
Weighted Average, Coupon Rate	2.00%	2.00%

Debt Agreements - Narrative (De

Debt Agreements - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Assets Sold under Agreements to Repurchase [Line Items]
Capitalized financing costs, net	$ 605		$ 605
Mortgages and Related Assets
Assets Sold under Agreements to Repurchase [Line Items]
Debt, weighted average interest rate	1.98%	2.47%	2.18%	2.97%
Percentage of loan guaranteed	25.00%		25.00%
Citibank, N.A. | Mortgages and Related Assets
Assets Sold under Agreements to Repurchase [Line Items]
Percentage of purchased asset, initial purchase price	75.00%		75.00%
Minimum percentage of margin to advance	75.00%		75.00%
Citibank, N.A. | Mortgages and Related Assets | LIBOR
Assets Sold under Agreements to Repurchase [Line Items]
Variable basis spread			2.00%
Citibank, N.A. | Mortgages and Related Assets | LIBOR | Minimum
Assets Sold under Agreements to Repurchase [Line Items]
Variable basis spread			2.00%
Citibank, N.A. | Mortgages and Related Assets | LIBOR | Maximum
Assets Sold under Agreements to Repurchase [Line Items]
Variable basis spread			2.50%

Fair Value of Financial Instr_3

Fair Value of Financial Instruments (Details) - Level III - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for investment	$ 237,697	$ 282,246
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for investment	233,032	279,381
Master Repurchase Facility | Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Master Repurchase Facility	155,562	200,233
Master Repurchase Facility | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Master Repurchase Facility	$ 155,962	$ 199,936

Shareholders' Equity - Narrativ

Shareholders' Equity - Narrative (Details) $ / shares in Units, $ in Thousands	Jul. 26, 2021USD ($)$ / shares	May 27, 2021trustee$ / sharesshares	Apr. 26, 2021USD ($)$ / shares	Feb. 19, 2021trustee$ / sharesshares	Dec. 17, 2020USD ($)$ / shares	Jun. 30, 2021USD ($)	Mar. 31, 2020USD ($)	Jun. 30, 2021USD ($)installment$ / sharesshares
Subsequent Event [Line Items]
Number of trustees | trustee		5
Grants awarded (in shares) | shares		3,000
Grants awarded (in dollars per share)		$ 6.11		$ 4.81
Shares repurchased (in shares) | shares								8,589
Shares repurchased, cost per share (in dollars per share)								$ 6.07
Distributions declared (in dollars per share)			$ 0.10		$ 0.53			$ 0.63
Distributions | $			$ 831		$ 4,401	$ 831	$ 1,895	$ 5,232
Subsequent Event
Subsequent Event [Line Items]
Distributions declared (in dollars per share)	$ 0.10
Distributions | $	$ 831
Trustee
Subsequent Event [Line Items]
Number of trustees | trustee				1
Grants awarded (in shares) | shares				3,000
Fully Vested Common Shares | Officer | 2017 Plan
Subsequent Event [Line Items]
Number of installments | installment								5

Shareholders' Equity - Schedule

Shareholders' Equity - Schedule of Share Repurchases and Distributions (Details) - USD ($) $ / shares in Units, $ in Thousands	May 20, 2021	Apr. 26, 2021	Jan. 15, 2021	Dec. 17, 2020	Jun. 30, 2021	Mar. 31, 2020	Jun. 30, 2021
Equity [Abstract]
Distributions declared (in dollars per share)		$ 0.10		$ 0.53			$ 0.63
Distributions paid (in dollars per share)	$ 0.10		$ 0.53				$ 0.63
Distributions		$ 831		$ 4,401	$ 831	$ 1,895	$ 5,232

Management Agreement with our_2

Management Agreement with our Manager (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021USD ($)employee	Jun. 30, 2020USD ($)	Jun. 30, 2021USD ($)employee	Jun. 30, 2020USD ($)
Related Party Transaction [Line Items]
Number of employees | employee	0		0
Base management fees	$ 341	$ 0	$ 682	$ 0
Management incentive fees	0	0	620	0
Reimbursement of shared services expenses	206	242	344	563
Principal Owner
Related Party Transaction [Line Items]
Base management fees		323		643
Management incentive fees		36		36
Principal Owner | Shared Service Costs
Related Party Transaction [Line Items]
Reimbursement of shared services expenses	$ 241	$ 280	$ 417	$ 638

Related Person Transactions (De

Related Person Transactions (Details) - Tremont Mortgage Trust - Tremont Realty Advisors LLC	Jun. 30, 2021shares
Related Party Transaction [Line Items]
Shares owned (in shares)	1,600,100
Noncontrolling ownership interest	19.20%

Weighted Average Common Share_2

Weighted Average Common Shares (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Earnings Per Share [Abstract]
Weighted average common shares outstanding - basic (in shares)	8,218	8,177	8,215	8,173
Effect of dilutive securities: unvested share awards (in shares)	48	0	38	0
Weighted average common shares outstanding - diluted (in shares)	8,266	8,177	8,253	8,173
Antidilutive securities (in shares)		105		64

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Other Commitments [Line Items]
Unfunded loan commitments	$ 9,085	$ 12,236
Weighted average maximum maturity	2 years 2 months 12 days	2 years 7 months 6 days
Mortgages and Related Assets
Other Commitments [Line Items]
Borrowings outstanding	$ 156,167
Weighted average maturity	7 months 6 days	1 year 1 month 6 days
Unfunded Commitments
Other Commitments [Line Items]
Weighted average maximum maturity	9 months 18 days

Legal Proceedings and Claims (D

Legal Proceedings and Claims (Details)	Jul. 26, 2021claim
Subsequent Event
Subsequent Event [Line Items]
Number of lawsuits filed	3