Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 22, 2023 | Jun. 30, 2022 | |
Document Information [Line Items] | |||
Entity Registrant Name | Broadmark Realty Capital Inc. | ||
Entity Central Index Key | 0001784797 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Securities Act File Number | 001-39134 | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 84-2620891 | ||
Entity Address, Address Line One | 1420 Fifth Avenue, Suite 2000 | ||
Entity Address, City or Town | Seattle | ||
Entity Address, State or Province | WA | ||
Entity Address, Postal Zip Code | 98101 | ||
City Area Code | 206 | ||
Local Phone Number | 971-0800 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0.9 | ||
Entity Common Stock, Shares Outstanding | 131,749,957 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement relating to its 2023 annual meeting of shareholders (the “2023 Proxy Statement”) are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. The 2023 Proxy Statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K. | ||
Auditor Name | Moss Adams LLP | ||
Auditor Location | Everett, Washington | ||
Auditor Firm ID | 659 | ||
Common Stock [Member] | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | BRMK | ||
Security Exchange Name | NYSE | ||
Warrant | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Warrants | ||
Trading Symbol | BRMK WS | ||
Security Exchange Name | NYSEAMER |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 54,964 | $ 132,889 |
Mortgage notes receivable, net | 881,950 | 901,350 |
Interest and fees receivable, net | 14,775 | 17,526 |
Investment in real property held for sale, net | 24,516 | 52,531 |
Investment in real property held for use, net | 63,382 | 15,536 |
Right-of-use assets | 5,609 | 6,016 |
Goodwill | 0 | 136,965 |
Other assets | 6,311 | 8,342 |
Total assets | 1,051,507 | 1,271,155 |
Liabilities and stockholders' equity | ||
Senior unsecured notes, net | 97,789 | 97,223 |
Dividends payable | 4,654 | 9,291 |
Accounts payable and accrued liabilities | 13,489 | 8,180 |
Lease liabilities | 7,522 | 7,993 |
Total liabilities | 123,454 | 122,687 |
Commitments and contingencies (Note 12) | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value, 100,000,000 shares authorized, no shares issued and outstanding at December 31, 2022 and December 31, 2021 | 0 | 0 |
Common stock, $0.001 par value, 500,000,000 shares authorized, 131,645,145 and 132,716,338 issued and outstanding at December 31, 2022 and December 31, 2021, respectively | 131 | 132 |
Additional paid in capital | 1,215,229 | 1,216,957 |
Accumulated deficit | (287,307) | (68,621) |
Total stockholders' equity | 928,053 | 1,148,468 |
Total liabilities and stockholders' equity | $ 1,051,507 | $ 1,271,155 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock shares issued (in shares) | 0 | 0 |
Preferred stock shares outstanding (in shares) | 0 | 0 |
Common stock par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock shares issued (in shares) | 131,645,145 | 132,716,338 |
Common stock shares outstanding (in shares) | 131,645,145 | 132,716,338 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues: | |||
Total revenues | $ 108,877 | $ 120,544 | $ 122,358 |
Revenues | 106,078 | 120,544 | 122,358 |
Real property revenue from operations | 2,799 | 0 | 0 |
Expenses: | |||
Compensation and employee benefits | 16,935 | 15,093 | 15,646 |
General and administrative | 13,300 | 11,518 | 15,083 |
Real property operating expenses and depreciation | 6,365 | 108 | 168 |
Interest expense | 8,638 | 3,320 | 0 |
Total expenses | 45,238 | 30,039 | 30,897 |
Impairment: | |||
Provision for credit losses, net | 38,266 | 6,179 | 6,722 |
Goodwill Impairment | 136,965 | 0 | 0 |
Total impairment | 175,231 | 6,179 | 6,722 |
Other (expense) income: | |||
Change in fair value of warrant liabilities | 1,813 | (1,838) | 5,492 |
Gain on sale of real property | 984 | 0 | 0 |
Impairment on real property | (7,596) | 0 | 0 |
Total other (expense) income | (4,799) | (1,838) | 5,492 |
(Loss) income before provision for income taxes | (116,391) | 82,488 | 90,231 |
Income tax provision | 0 | 0 | 0 |
Net (loss) income | $ (116,391) | $ 82,488 | $ 90,231 |
Earnings per common share: | |||
Basic | $ (0.88) | $ 0.62 | $ 0.68 |
Diluted | $ (0.88) | $ 0.62 | $ 0.68 |
Weighted-average shares of common stock outstanding, basic and diluted | |||
Basic | 132,841,196 | 132,579,289 | 132,209,495 |
Diluted | 132,841,196 | 132,666,502 | 132,261,113 |
Interest Income [Member] | |||
Revenues: | |||
Revenues | $ 83,410 | $ 89,957 | $ 93,869 |
Fee Income [Member] | |||
Revenues: | |||
Revenues | $ 22,668 | $ 30,587 | $ 28,489 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment [Member] | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Accumulated Deficit) [Member] | Retained Earnings (Accumulated Deficit) [Member] Cumulative Effect, Period of Adoption, Adjustment [Member] |
Balance at Dec. 31, 2019 | $ 1,184,472 | $ (1,975) | $ 0 | $ 132 | $ 1,209,120 | $ (24,780) | $ (1,975) |
Balance, Shares at Dec. 31, 2019 | 0 | 132,015,635 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 90,231 | 90,231 | |||||
Dividends | (103,174) | (103,174) | |||||
Issuance of shares for vested restricted stock units (in shares) | 516,723 | ||||||
Issuance of shares for exercised warrants (in Shares) | 25 | ||||||
Stock-based compensation expense for restricted stock units | 4,867 | 4,867 | |||||
Purchase of treasury stock | 0 | ||||||
Balance at Dec. 31, 2020 | 1,174,421 | $ 132 | 1,213,987 | (39,698) | |||
Balance, Shares at Dec. 31, 2020 | 132,532,383 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 82,488 | 82,488 | |||||
Dividends | (111,411) | (111,411) | |||||
Issuance of shares for vested restricted stock units (in shares) | 231,053 | ||||||
Shares withheld for tax liability | (485) | (485) | |||||
Shares withheld for tax liability (in shares) | (47,098) | ||||||
Stock-based compensation expense for restricted stock units | 3,455 | 3,455 | |||||
Purchase of treasury stock | 0 | ||||||
Balance at Dec. 31, 2021 | 1,148,468 | $ 132 | 1,216,957 | (68,621) | |||
Balance, Shares at Dec. 31, 2021 | 132,716,338 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | (116,391) | (116,391) | |||||
Dividends | (102,295) | (102,295) | |||||
Issuance of shares for vested restricted stock units (in shares) | 285,853 | ||||||
Shares withheld for tax liability | (508) | (508) | 0 | ||||
Shares withheld for tax liability (in shares) | (61,885) | ||||||
Issuance of shares for exercised warrants (in Shares) | 112 | ||||||
Stock-based compensation expense for restricted stock units | 3,779 | 3,779 | 0 | ||||
Repurchase of common stock (In Shares) | (1,295,273) | ||||||
Repurchase of common stock | (5,000) | $ (1) | (4,999) | 0 | |||
Purchase of treasury stock | (5,000) | ||||||
Balance at Dec. 31, 2022 | $ 928,053 | $ 131 | $ 1,215,229 | $ (287,307) | |||
Balance, Shares at Dec. 31, 2022 | 131,645,145 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | |||
Net income (loss) | $ (116,391) | $ 82,488 | $ 90,231 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Accretion of deferred origination and amendment fees | (21,608) | (27,741) | (23,114) |
Depreciation and amortization | 1,314 | 741 | (558) |
Goodwill impairment | 136,965 | 0 | 0 |
Amortization of right of use assets | 407 | 382 | 446 |
Amortization of debt issuance costs | 572 | 78 | 0 |
Amortization of credit facility costs | 1,510 | 1,255 | 0 |
Stock-based compensation expense for restricted stock units | 3,779 | 3,455 | 4,867 |
Provision for credit losses, net | 38,266 | 6,179 | 6,722 |
Gain on sale of real property | (984) | 0 | 0 |
Impairment on real property | 7,596 | 0 | 0 |
Change in fair value of warrant liabilities | (1,813) | 1,838 | (5,492) |
Changes in operating assets and liabilities: | |||
Interest and fees receivable, net | 1,507 | (3,169) | (10,249) |
Other assets | 16 | 385 | (1,073) |
Accounts payable and accrued liabilities | 6,553 | (1,397) | 2,469 |
Lease liabilities | (471) | (364) | (446) |
Net cash provided by operating activities | 57,218 | 64,130 | 63,803 |
Cash flows from investing activities: | |||
Fundings of mortgage notes receivable | (540,579) | (675,009) | 445,794 |
Principal collections | 500,486 | 569,104 | 458,309 |
Origination and amendment fees received on mortgage notes receivable | 15,073 | 13,916 | 13,670 |
Purchases of property and equipment | (137) | (476) | 0 |
Proceeds from sale of real property | 8,365 | 4,319 | 6,356 |
Improvements in real property | (5,911) | (4,435) | (119) |
Repurchase of participations in mortgage notes receivable | 0 | (43,498) | 0 |
Net cash provided by (used in) investing activities | (22,703) | (136,079) | 32,422 |
Cash flows from financing activities: | |||
Dividends paid | (106,932) | (110,072) | (111,064) |
Purchase of treasury stock | (5,000) | 0 | 0 |
Proceeds from issuance of senior unsecured notes | 0 | 100,000 | 0 |
Payment of debt issue costs | 0 | (2,855) | 0 |
Payment of costs to obtain financing | 0 | (5,125) | 0 |
Proceeds from borrowings on credit facilities | 45,000 | 50,000 | 0 |
Repayment of borrowings on credit facilities | (45,000) | (50,000) | 0 |
Payment of taxes on shares withheld for tax liability | (508) | (485) | 0 |
Net cash used in financing activities | (112,440) | (18,537) | (111,064) |
Net decrease in cash and cash equivalents | (77,925) | (90,486) | (14,839) |
Cash and cash equivalents, beginning of period | 132,889 | 223,375 | 238,214 |
Cash and cash equivalents, end of period | 54,964 | 132,889 | 223,375 |
Supplemental disclosure of cash flow information: | |||
Interest paid | 5,193 | 0 | 0 |
Supplemental disclosure of non-cash investing and financing activities | |||
Dividends payable | 4,654 | 9,291 | 7,952 |
Measurement Period Adjustment to Goodwill and Intangible Assets | 0 | 0 | 5,000 |
Mortgage notes receivable converted to investment in real property | 54,230 | 54,349 | 8,873 |
Investments in real property converted to mortgage notes receivable | 25,900 | 0 | 0 |
Interest and fee receivables converted to investments in real property | 1,244 | 4,129 | 0 |
Operating lease right-of-use assets | 0 | 6,360 | 0 |
Lease liabilities arising from obtaining right-of-use assets | 0 | 8,319 | 0 |
Property and equipment purchased through tenant improvement allowance | $ 0 | $ 1,959 | $ 0 |
Organization and Business
Organization and Business | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business | Note 1 - Organization and Business Broadmark Realty Capital Inc. (“Broadmark Realty,” “the Company,” “we,” “us” and “our”) is an internally managed commercial real estate finance company that provides secured financing to real estate investors and developers. Broadmark Realty’s objective is to preserve and protect stockholder capital while producing attractive risk-adjusted returns primarily through dividends generated from current income from its loan portfolio. Broadmark Realty has historically operated in states that it believes to have favorable demographic trends and provide Broadmark Realty the ability to efficiently access the underlying collateral in the event of borrower default. The consolidated subsidiaries of Broadmark Realty include BRMK Lending, LLC, BRMK Management, Corp., and Broadmark Private REIT Management, LLC. BRMK Lending, LLC originates short-term loans generally secured by first deed of trust liens on residential and commercial real estate. BRMK Management, Corp. (the “Manager”) manages the underwriting, closing, servicing and disposition of mortgage notes, and performs all general and administrative duties for Broadmark Realty. Broadmark Private REIT Management, LLC (the “Private REIT Manager”) previously managed Broadmark Private REIT, LLC (the “Private REIT”), which was an unconsolidated affiliate of the Company that primarily participated in loans originated, underwritten and serviced by a subsidiary of Broadmark Realty. The Private REIT was liquidated during the quarter ended September 30, 2021. Refer to Note 14 for details about the liquidation of the Private REIT. Broadmark Realty has elected to be taxed as a real estate investment trust (“REIT”) for U.S. federal income tax purposes. Broadmark Realty generally will not be subject to U.S. federal corporate income tax on that portion of its net income that is distributed to stockholders if it annually distributes dividends equal to at least 90% of its REIT taxable income to its stockholders (determined without regard to the dividends-paid deduction and excluding net capital gains) by prescribed dates and complies with various other requirements. Broadmark Realty also operates its business in a manner that permits it to maintain an exclusion from registration under the Investment Company Act of 1940. As a REIT, Broadmark Realty may own up to 100% of the stock of one or more taxable REIT subsidiaries (“TRSs”), which may earn income that would not be qualifying income if earned directly by a REIT. The Manager is a TRS and this election applies to the wholly-owned subsidiaries of the Manager, including the Private REIT Manager. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 - Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements include Broadmark Realty Capital Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. These consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”). Principles of Consolidation Broadmark Realty consolidates those entities in which it has control over significant operating, financial and investing decisions of the entity, as well as those entities deemed to be variable interest entities (“VIEs”), if any, in which Broadmark Realty is determined to be the primary beneficiary. Broadmark Realty is not the primary beneficiary of, and therefore does not consolidate, any VIEs in the accompanying consolidated financial statements. The Private REIT was determined to be a voting interest entity for which we, through our wholly-owned subsidiary who previously acted as manager with no significant equity investment, did not hold a controlling interest in and, therefore, did not consolidate. Furthermore, the Private REIT's participation in loans originated by us met the characteristics of a participating interest and the criterion for sale accounting in accordance with GAAP and therefore, the loans were derecognized from our consolidated financial statements. The Private REIT was liquidated in August 2021 and all participations in mortgage notes receivable held by the Private REIT were purchased for cash by the Company at the settlement value which approximated fair value. Reclassifications Certain amounts in our prior period consolidated financial statements have been reclassified to conform to the presentation of our current period consolidated financial statements. These reclassifications had no effect on our previously reported net income or stockholders’ equity. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts and disclosures at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. The most significant estimates relate to the expected credit losses on our loans, the fair value of financial instruments, goodwill impairment, exit prices for collateral dependent loans and the fair value of investments in real property. Accordingly, actual results could differ from those estimates. For certain real properties, where a recent appraisal is either unavailable or not most representative of fair value, the fair value of the “as complete” property is based on a broker opinion of value including a capitalized income analysis and replacement cost analysis considering market rents, vacancy rates, capitalization rates, land cost comparisons, market trends and economic conditions. Depending on the stage of the underlying property, we also consider estimated costs to complete remaining construction and to lease up the finished property. The assessment of fair value of real property is subject to uncertainty and, in certain cases, sensitive to the selection of comparable properties. Certain Significant Risks and Uncertainties In the normal course of business, we encounter two primary types of economic risk in the form of credit and market risks. Credit risk is the risk of default on our investment in mortgage notes receivable resulting from a borrower's inability or unwillingness to make contractually required payments. Market risk is the risk of declining real estate values for the collateral underlying our loans which may make it more difficult for existing borrowers to remain current on their payment obligations, reduce the speed or ability for our loans to be repaid through the sale or refinance of the collateral and increase the likelihood that we will incur losses on our loans in the event of default as the value of collateral may be insufficient to cover our investment in the loan. We believe that the carrying values of our loans reasonably consider these risks. In addition, we are subject to significant tax risks. If we were to fail to qualify as a REIT in any taxable year, we would be subject to U.S. federal corporate income tax, which could be material. We operate in a dynamic industry and, accordingly, can be affected by a variety of factors. For example, we believe that changes in any of the following areas could have a significant negative effect on us in terms of our future financial position, results of operations or cash flows: the economy in the areas we operate; the stability of the real estate market and the impact of interest rate changes; competition in our market; changes in government regulation affecting our business; public health crises, like the COVID-19 pandemic; natural disasters, catastrophic events and the physical effects of climate change; and our ability to attract and retain qualified employees and key personnel, among other things. Reportable Segments We operate the business as one reportable segment. Our principal business activities are related to the origination underwriting and serving of loans secured by real estate as well the investment in real property held for sale and use. BALANCE SHEET MEASUREMENT Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of 90 days or less at the date of purchase to be cash equivalents. We have a cash management sweep account repurchase agreement, whereby our bank nightly sweeps cash in excess of $ 750,000 , sells us specific U.S. government agency securities and then repurchases these securities the next day. We maintain our cash and cash equivalents with financial institutions, which are insured up to a maximum of $ 250,000 per account as of December 31, 2022 and 2021 . The balances in these accounts may exceed the insured limits. There were no restrictions on cash as of December 31, 2022 or 2021 . Mortgage Notes Receivable Mortgage notes receivable (referred to herein as “mortgage notes receivable”, “construction loans”, “loans”, or “notes”) are classified as held for investment , as we have the intent and ability to hold until maturity or payoff and are carried in the consolidated balance sheets at amortized cost, net of construction holdbacks, interest reserves, allowance for credit losses and deferred origination and amendment fees as described in Note 3. Current Expected Credit Losses Allowance We adopted the current expected credit loss (“CECL”) standard during the year ended December 31, 2020. The initial CECL allowance adjustment of $ 2.0 million was recorded effective January 1, 2020 as a cumulative-effect of change in accounting principle through a direct charge to accumulated deficit on our consolidated statements of stockholders’ equity; however, subsequent changes to the CECL allowance are recognized in our consolidated statements of operations. We record an allowance for credit losses in accordance with the CECL standard on our loan portfolio, including unfunded construction holdbacks, on a collective basis by assets with similar risk characteristics. In addition, for assets that are classified as collateral dependent where (1) we have begun a foreclosure, (2) bankruptcy is declared, (3) we have elected to pursue the appointment of a receiver, (4) Loan-to-value (“LTV”) or current LTV is greater than 100% or (5) we intend to obtain ownership of the property, we continue to record loan specific allowances based on the fair value of the collateral for expected credit losses under the CECL standard. Given the short-term nature of our loans, we evaluate the most recent external appraisal and, depending on the age of the appraisal, may order a new appraisal or, where available, will evaluate against existing comparable sales or other pertinent information to estimate the fair value of the collateral for such loans. The CECL standard requires an entity to consider historical loss experience, current conditions, and a reasonable and supportable forecast of the economic environment. The Company utilizes a probability of default/loss given default (“PD/LGD”) method for estimating current expected credit losses. In accordance with the PD/LGD method, an annual historical loss rate is applied to the amortized cost of an asset or pool of assets over the remaining expected life. The PD/LGD method requires consideration of the timing of expected future funding of existing commitments and repayments over each asset’s remaining life. An annual loss factor, adjusted for macroeconomic estimates, is applied over each subsequent period and aggregated to arrive at the CECL allowance. In determining the CECL allowance, we considered various factors including (1) historical loss experience in our portfolio, (2) historical loss experience in the commercial real estate lending market, (3) loan specific losses for loans deemed collateral dependent based on excess amortized cost over the fair value of the underlying collateral (4) timing of expected pay offs including prepayments and extensions where reasonably expected and (5) our current and future view of the macroeconomic environment. We utilize a reasonable and supportable forecast period equal to the contractual term of the loan plus short-term extensions of one to three months that are reasonably expected for construction loans. Management estimates the allowance for credit losses using relevant information, from internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. The allowance for credit losses is maintained at a level sufficient to provide for expected credit losses over the life of the loan based on evaluating historical credit loss experience and making adjustments to historical loss information for differences in the specific risk characteristics in the current loan portfolio. The CECL allowance related to the principal outstanding is presented within mortgage notes receivable, net and for unfunded commitments is within accounts payable and accrued liabilities in our consolidated balance sheets. We have made an accounting policy election to exclude accrued interest receivable, included in interest and fees receivable, net on our consolidated balance sheets, from the amortized cost basis of the related mortgage notes receivable in determining the CECL allowance, as any uncollectable accrued interest receivable is written off either when the collateral underlying the loan is sold or upon transfer to real estate owned. No interest income is recognized on mortgage notes receivable that are in contractual default unless the collectability of all principal is not in doubt and collection of accrued amounts is reasonably assured or paid in cash. In addition, if a loan is deemed collateral dependent or high risk, it is placed on non-accrual status with interest income recognized on a cash-basis where principal collection is not in doubt. Deferred Income Deferred income represents the amount of our origination, loan servicing and amendment fees that have been deferred and will be recognized in income over the contractual maturity of the underlying loan. Origination and loan servicing fees are included in the total commitment to the borrower and financed at the time of loan origination. Amendment fees are either included in the total commitment to the borrower and financed at the time of the loan amendment or are billed to the borrower when the loan is amended and not capitalized into the principal outstanding. Deferred origination, loan servicing and amendment fees capitalized into the principal outstanding are included within mortgage notes receivable, net on the consolidated balance sheets. Deferred amendment fees that are not included in the principal outstanding are presented within interest and fees receivable, net in the consolidated balance sheets. Interest and Fees Receivable Interest on performing loans is accrued and recognized as interest income at the contractual rate of interest, or at the contractual rate of monthly minimum interest, if applicable. Extension fees are charged when we agree to extend the maturity dates of loans. In addition, late fees are charged when borrower payments are contractually past due. We monitor each note’s outstanding interest and fee receivables and, based on historical performance, generally reserve against the balance after a receivable is greater than 60 days past due unless collectability of all amounts due is reasonably assured. Real Property To maximize recovery against a defaulted loan, we may assume legal title or physical possession of the underlying collateral through foreclosure or the execution of a deed in lieu of foreclosure. The properties are initially measured at fair value. If the fair value of the property is lower than the carrying value of the loan, the difference is recognized as current expected credit loss reserves. In the case that there is a loss in excess of the cumulative reserve on the loan, the additional loss is recognized as a realized principal loss which is included as part of our provision for credit losses, net on our consolidated statements of operations. If the collateral value exceeds the carrying value of the loan, we then record some or all the unpaid, accrued interest and fees to the carrying value of the property. Real Property Held for Sale Real property is classified as held for sale in the period when we (1) commit to a plan and have the authority to sell the asset in its current condition, (2) have initiated an active marketing plan to sell the asset at a price that is reflective of its current fair value and (3) the sale of the asset is both probable and expected to qualify for full sales recognition within a period of 12 months. Real property classified as held for sale is held at the lower of cost or fair value at the time of acquisition and is evaluated for subsequent decreases in fair value on a quarterly basis. Any subsequent decreases in value are recorded as impairment in real property in our consolidated statements of operations. Depreciation is not recorded on assets classified as held for sale and operating and holding expenditures are charged to expense when incurred. Based on a change in circumstances, we may have a change to a plan of sale and decide not to sell real property previously classified as held for sale, in which case we would reclassify as held for use. Upon reclassification to held for use, the real property is measured at the lower of (1) its carrying amount before the asset was classified as held for sale, adjusted for any depreciation or amortization expense that would have been recognized had the assets continued to be classified as held for use, or (2) the fair value at the date of the subsequent decision not to sell. Real Property Held for Use Properties that are classified as held for use are carried at cost less accumulated depreciation. We evaluate our real property held for use for impairment at the time of acquisition and whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. If an impairment indicator exists, we evaluate the undiscounted net cash flows that are expected to be generated by the property, including any estimated proceeds from the eventual disposition of the property. Based upon the analysis, if the carrying value of a property exceeds its undiscounted net cash flows, an impairment loss is recognized for the excess of the carrying value of the property over the estimated fair value of the property. In evaluating and/or measuring impairment, we consider, among other things, current and estimated future cash flows associated with each property, market information for each sub-market, including, where applicable, competition levels, foreclosure levels, leasing trends, occupancy trends, lease or room rates, and the market prices of similar properties recently sold or currently being offered for sale and other quantitative and qualitative factors. Another key consideration in this assessment is our assumption about the highest and best use of the real estate investments and our intent and ability to hold them for a reasonable period that would allow for the recovery of their carrying values. Costs related to acquisition, development, construction and improvements are capitalized to the extent the investment in the real property held for use does not exceed the fair value less estimated costs to sell. Expenditures for repairs and maintenance are charged to expense when incurred. Once construction is complete and the property is held available for occupancy, real property held for use is depreciated using the straight-line method over the estimated useful life of the property. Depreciation expense is no longer recorded once the real property is classified as held for sale. Leases Our office space in Seattle, Washington is subject to an operating lease. The right of use assets and lease liabilities in our consolidated balance sheets relate to this lease. The lease agreement includes both lease components (e.g., fixed rent) and non-lease components (e.g., common-area maintenance). We account for the lease and non-lease components as a single component. Right of use assets represent our right to use an underlying asset during the lease term and lease liabilities represent our obligation to make lease payments. Right of use assets and lease liabilities are recognized at the lease commencement date based on the present value of the total lease payments not yet paid, including lease incentives not yet received, with the right of use assets further adjusted for any prepaid or accrued lease payments, lease incentives received and/or initial direct costs incurred. Our lease arrangement also includes variable payments for costs such as common-area maintenance, utilities, taxes or other operating costs, which are based on a percentage of actual expenses incurred. These variable lease payments are excluded from the measurement of the right of use assets and lease liabilities. When our lease includes an option to extend the lease term, we consider several factors in determining if a renewal option is reasonably certain of being exercised at lease commencement, including, but not limited to, contract-based, asset-based and entity-based factors. We reassess the term of the existing lease if there is a significant event or change in circumstances within our control that affects whether we are reasonably certain to exercise the option to extend the lease. Examples of such events or changes include construction of significant leasehold improvements or other modifications or customizations to the underlying asset, relevant business decisions or subleases. As our lease did not provide an implicit rate, we used our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. We recognize lease expense for our operating lease on a straight-line basis over the lease term. Variable lease payments are generally recognized when incurred. These expenses are included in general and administrative expenses in the consolidated statements of operations. Goodwill Goodwill represents the excess of the cost of an acquired business over the fair value of the assets acquired at the date of acquisition and is not amortized. Goodwill is assessed for impairment annually in the fourth quarter or more frequently if events occur or circumstances change that indicate an impairment may exist. Our assessment begins with an evaluation of qualitative factors, including macroeconomic conditions, industry and market considerations, current and projected financial performance, changes in strategy and market capitalization to determine whether it is more likely than not that the fair value of our single reporting unit exceeds the carrying value. A high degree of judgment is required in evaluating the qualitative factors. If we conclude that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, a quantitative test is then performed. The quantitative test consists of comparing the estimated fair value of the reporting unit to its carrying amount, including goodwill, using income or market approaches. If the estimated fair value of the reporting unit is less than the carrying value including goodwill, an impairment write-down of goodwill would be required for the excess of carrying value over the estimated fair value. When market comparables or observable market values are not meaningful or not available, we estimate the fair value of a reporting unit using only the income approach. Estimating the fair value of our reporting unit requires the use of inputs and assumptions for which there is inherent uncertainty. Other Assets Other assets primarily consist of deferred financing costs related to our revolving credit facility, fixed assets, prepaid insurance and other operating receivables. Fixed Assets Fixed assets, which are included in other assets in the accompanying consolidated balance sheets are stated at cost, less accumulated depreciation. Repairs and maintenance to these assets are charged to expense as incurred; major improvements enhancing the function and/or useful life are capitalized. When items are sold or retired, the related cost and accumulated depreciation are removed from the accounts and any gains or losses arising from such transactions are recognized. Depreciation and amortization are recorded on the straight-line basis over the estimated useful life of the assets. For computer equipment, office equipment, furniture and fixtures the useful lives range from three to seven years . For leasehold improvements, we amortize over the shorter of expected useful life or lease term. Deferred Financing Costs Deferred financing costs that are included in other assets represent direct costs associated with the execution of the revolving credit facility. Such costs are included in other assets because the revolving credit facility has no principal outstanding as of December 31, 2022 and there is no recognized debt liability. These costs are amortized on the straight-line basis over the initial term of our revolving credit facility. Intangible Assets We record intangible assets at fair value at the acquisition date and amortize their value into expense over the expected useful life. All of our intangible assets relate to the value of customer relationships. As of December 31, 2022 , our intangible assets have been fully amortized. Senior Unsecured Notes Senior unsecured notes are recorded at the face amount of the notes net of unamortized issuance costs. Debt Issuance Costs Debt issuance costs represent direct costs associated with the issuance of a debt instrument that are deferred and amortized over the initial term of our debt instruments. Debt issuance costs are reported in the consolidated balance sheets as a direct deduction from the face amount of the debt issued. Costs that do not qualify as debt issuance costs are expensed as incurred. INCOME RECOGNITION Interest Income Interest income on mortgage notes receivable is accrued based on contractual rates applied to the principal balance, unless there is a minimum interest provision in the mortgage note. Certain construction loans provide for minimum interest provisions, to which the contractual rate applies, which are typically between 50 % and 70 % of the face amount of the note until the actual outstanding principal exceeds the minimum threshold. Our loans originated since the second quarter of 2021 typically do not provide for minimum interest provisions. Mortgage notes receivable can be placed in contractual default status for any of the following reasons: (1) interest receivable is 60 days past due, (2) the loan was not repaid at the maturity date (3) there is a breach of terms in the loan documents or (4) the value of the collateral is less than the loan amount. The accrual of interest income is suspended when a loan is in contractual default unless the interest is paid in cash or collectability of all amounts due is reasonably assured. In addition, we may place a loan on non-accrual status when the loan is either deemed collateral dependent or high risk. The following criteria are used to determine if a loan is deemed high risk: (1) total outstanding interest and fee receivables are greater than 15% of the total commitment and outstanding face rate interest receivable if 60 days past due, (2) there is a significant decline in the value of the collateral due to entitlement, engineering or project changes, (3) introduction of significant uncertainty due to the project or collateral type, (4) significant decline in value of collateral due to market conditions, (5) significant damage or loss to the collateral, (6) adverse claim against the property or borrower and (7) unfunded construction cost overruns. Interest previously accrued may be reversed at that time, and such reversal is offset against interest income. The accrual of interest income resumes only when the loans are no longer deemed collateral dependent or high risk, with collectability being reasonably assured. Fee Income We charge loan origination and loan servicing fees in conjunction with origination. Amendment fees are charged when loan terms are modified, such as increases in interest reserves and construction holdbacks in line with our underwriting criteria or upon modification of a loan for the transition from horizontal development to vertical construction. We defer and amortize loan origination, loan servicing and amendment fees over the contractual terms of the loans. Extension fees are charged when we agree to extend the maturity dates of loans and we charge fees on past due receivables. Extension and late fees are recognized when billed to the borrower. We charge inspection fees, which we use to hire independent inspectors to report on the status of construction projects. These fees are earned and recognized upon each construction draw request. EXPENSE RECOGNITION Interest Expense Interest expense on debt obligations is accrued based on the note rate applied to the face amount of the debt outstanding. Amortization of debt issuance costs and deferred financing costs over the initial term of the debt instruments is reported as interest expense in the consolidated statements of operations. Stock‑Based Compensation We measure compensation expense for all share-based awards at fair value on the date of grant and recognize compensation expense over the service period on a straight-line basis for awards expected to vest, which is generally three years for employees and one year for directors. Awards made to our employees and directors, typically consist of restricted stock units (“RSUs”). Employee stock-based compensation expense is included in compensation and employee benefits and director stock-based compensation expense is included in general and administrative in the consolidated statement of operations. For awards with only a service vesting condition, the fair value of the award is based on the grant date closing price of our common stock less the present value of expected dividends over the requisite service period, as the awards are not entitled to dividends. For these awards, we recognize stock-based compensation expense on a straight-line basis over the requisite service period for the entire award, subject to periodic adjustments to ensure that the cumulative amount of expense recognized through the end of any reporting period is at least equal to the portion of the grant date fair value of the award that has vested through that date, and we account for forfeitures prospectively as they occur. For awards that contain both service vesting and market conditions, referred to as performance restricted stock units (“pRSUs”), we use a Monte Carlo simulation model to calculate the grant date fair value. For these market-condition awards, regardless of the outcome of the market condition, we recognize stock-based compensation expense on a straight-line basis over the longest of explicit and derived service periods, and we account for forfeitures prospectively as they occur. If there are any modifications or cancellations of the underlying unvested share-based awards, we may be required to accelerate or increase any remaining unrecognized or previously recorded stock-based compensation expense. Income Taxes We have elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, for U.S. federal income tax purposes (the “Code”). As a REIT, we generally are not subject to U.S. federal income taxes on net income we distribute to our stockholders. We intend to make timely distributions sufficient to satisfy the annual distribution requirements. If we fail to qualify as a REIT in any taxable year, we will be subject to U.S. federal income tax on our taxable income at regular corporate tax rates. Even if we qualify for taxation as a REIT, we may be subject to certain state and local taxes on our income and property and U.S. federal income and excise taxes on our undistributed income. Our TRSs are subject to U.S. federal income taxes. Earnings per Share (“EPS”) Basic EPS is calculated by dividing the net (loss) income attributable to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Diluted EPS is calculated by dividing the net (loss) income attributable to common stockholders by the weighted average number of shares of common stock outstanding determined for the basic EPS computation plus the effect of any dilutive securities. We include unvested shares of restricted stock in the computation of diluted EPS by using the treasury stock method. We include unvested performance units as contingently issuable shares in the computation of diluted EPS once the market criteria are met, assuming that the end of the reporting period is the end of the contingency period. Any anti-dilutive securities are excluded from the diluted EPS calculation. Recently Issued Accounting Pronouncements Not Yet Adopted In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, which eliminates the accounting guidance for troubled debt restructurings (“TDR”) for creditors that have adopted the CECL standard and requires enhanced disclosures for loan modifications made to borrowers experiencing financial difficulty in the form of interest rate reductions, principal forgiveness, other-than-insignificant payment delays, or term extensions. In addition, the new guidance requires presentation in the vintage disclosures of current-period gross write-offs by year of origination. The guidance is effective for the Company in the first quarter of 2023. Entities are able to early adopt the guidance and have the ability to early adopt the TDR enhancements separately from the vintage disclosures. We have not yet adopted this ASU. While the guidance will result in expanded disclosures, we do not believe the adoption of this guidance will have a material impact on our financial position, results of operation or cash flows. |
Mortgage Notes Receivable
Mortgage Notes Receivable | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Mortgage Notes Receivable | Note 3 - Mortgage Notes Receivable The stated principal amount of mortgage notes receivable in our portfolio represents our interest in loans generally secured by first deeds of trust, security agreements or legal title to real estate located in the United States. Our lending standards typically require that all mortgage notes receivable be secured by a first deed of trust lien on real estate and that the maximum LTV be no greater than 65 %. The LTV is calculated on an “as-complete” appraised value of the underlying collateral as determined by an independent appraiser at the time of the loan origination. The lending standards also typically limit the initial outstanding principal balance of the loan to a maximum LTV of up to 65 % of the “as-is” appraised value of the underlying collateral, as determined by an independent appraiser at the time of the loan origination. Unless otherwise indicated, LTV is measured by the total commitment amount of the loan at origination divided by the “as-complete” appraisal. LTVs do not reflect interim loan activity such as construction draws or interest payments capitalized to loans, or partial repayments of the loan. The maximum amount of a single loan may not exceed 10 % of our total assets and the maximum amount to a single borrower may not exceed 15 % of our total assets. We consider the maximum LTV as an indicator for the credit quality of a mortgage note receivable. Mortgage notes receivable are considered to be short-term financings. As of December 31, 2022, the weighted average term outstanding of our active loans was 22 months, which we often elect to extend for several months, based on our evaluation of the expected timeline for completion of construction. All loans require monthly interest only payments, with our weighted average interest rate on our portfolio being 10.2 % as of December 31, 2022 . Most loans are structured with an interest reserve holdback that covers the interest payments for the initial term of the loan. Once the interest reserve is depleted, borrowers are expected to pay their monthly interest payment within 10 days of month-end. Mortgage notes receivable are presented net of construction holdbacks, interest reserves, allowance for credit losses and deferred origination and amendment fee income in the consolidated balance sheets. The construction holdback represents amounts withheld from the funding of construction loans until we deem construction to be sufficiently completed. The interest reserve represents amounts withheld from the funding of certain mortgage notes receivable for the purpose of satisfying monthly interest payments over all or part of the term of the related note. Accrued interest is paid out of the interest reserve and recognized as interest income at the end of each month. The deferred origination, loan servicing and amendment fee income represents amounts that will be recognized over the contractual life of the underlying mortgage notes receivable. The following table reconciles outstanding mortgage loan commitments to the outstanding balance of mortgage notes receivable as of December 31, 2022 and 2021: (dollars in thousands) December 31, 2022 December 31, 2021 Total loan commitments $ 1,417,325 $ 1,489,055 Less: Construction holdbacks (1) 452,690 524,462 Interest reserves 33,633 39,880 Total principal outstanding for our mortgage notes receivable 931,002 924,713 Less: Allowance for credit losses (2) 41,492 10,394 Deferred origination and amendment fees 7,560 12,969 Mortgage notes receivable, net $ 881,950 $ 901,350 (1) As of December 31, 2022 and 2021 this amount includes $ 22.8 and $ 17.3 million, respectively, of construction holdbacks for defaulted loans that we are no longer required to pay. These amounts are included in the loan commitment totals. (2) As of December 31, 2022 and 2021, $ 1.5 and $ 0.9 million, respectively, of the CECL allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our consolidated balance sheet. When a loan is deemed collateral dependent or high risk, it is placed on non-accrual status with interest income recognized on a cash-basis where principal collection is not in doubt. As of December 31, 2022 and 2021, the principal outstanding on loans in contractual default status placed on non-accrual status was $ 217.2 and $ 101.9 million, respectively. As of December 31, 2022 and 2021, the principal outstanding on loans in contractual default was $ 250.4 and $ 174.0 million, respectively. The following tables show the carrying value of loans in contractual default status by collateral type and the LTV of the loans in contractual default at the dates indicated: December 31, 2022 (dollars in thousands) Number of Loans Carrying Value % of Portfolio Collateral Type Residential lots 8 $ 71,306 28.5 % Condos 3 42,237 16.9 Hotel 2 28,919 11.5 Entitled Land 2 22,447 9.0 Townhomes 5 21,175 8.5 Single Family Housing 11 20,335 8.1 Mixed Use 4 14,795 5.9 Unentitled Land 1 10,496 4.2 Apartments 2 6,947 2.8 Offices 1 6,288 2.5 Retail 1 5,443 2.2 Total 40 $ 250,388 100.0 % December 31, 2022 (dollars in thousands) Carrying Value % of Portfolio LTV (1) 0 - 40% $ 3,969 1.6 % 41 - 60% 91,201 36.4 61 - 80% 139,537 55.7 Above 80% 15,681 6.3 Total $ 250,388 100.0 % (1) Represents current LTV as of origination or latest amendment. At December 31, 2022, the weighted average LTV for loans in contractual default using the latest appraisal was 124.8 % . The weighted average LTV of our loans in contractual default net of our allowance for credit losses was approximately 84.9 %. December 31, 2021 (dollars in thousands) Number of Loans Carrying Value % of Portfolio Collateral Type Condos 4 $ 47,741 27.4 % Senior Housing 1 25,337 14.6 Residential lots 3 19,541 11.2 Townhomes 6 18,870 10.8 Entitled Land 1 17,335 10.0 Mixed Use 4 15,858 9.1 Hotel 1 14,583 8.4 Unentitled Land 2 5,403 3.1 Apartments 2 5,341 3.1 Single Family Housing 7 3,973 2.3 Total 31 $ 173,984 100.0 % December 31, 2021 (dollars in thousands) Carrying Value % of Portfolio LTV (1) 0 - 40% $ 22,737 13.1 % 41 - 60% 26,902 15.5 61 - 80% 110,548 63.5 Above 80% 13,797 7.9 Total $ 173,984 100.0 % (1) Represents LTV as of origination or latest amendment. Current Expected Credit Losses In assessing the CECL allowance, we consider historical loss experience, current conditions, and a reasonable and supportable forecast of the macroeconomic environment. We derived an annual historical loss rate based on the Company’s historical loss experience in its portfolio and the historical loss experience in the commercial real estate industry provided by a third party adjusted to incorporate the risks of construction lending and to reflect our expectations of the macroeconomic environment based on forecast data per the Federal Reserve. The following tables summarize the activity in the CECL allowance during the years ended December 31, 2022 and 2021: CECL Allowance (dollars in thousands) Funded Unfunded (2) Total CECL allowance as of December 31, 2020 $ 10,590 $ — $ 10,590 Provision for credit losses, net 5,275 904 6,179 Charge-offs (1) ( 5,471 ) — ( 5,471 ) CECL allowance as of December 31, 2021 10,394 904 11,298 Provision for credit losses, net 37,696 570 38,266 Charge-offs (1) ( 6,598 ) — ( 6,598 ) CECL allowance as of December 31, 2022 $ 41,492 $ 1,474 $ 42,966 (1) Charge-offs result from either loan repayments where the proceeds are less than the principal outstanding or transfers to investment in real property at the time that we take ownership of the property where the fair values of the underlying collateral are less than the principal outstanding. (2) CECL allowance related to unfunded commitments is presented as a liability under accounts payable and accrued liabilities in our consolidated balance sheet. As of December 31, 2022, the funded and unfunded CECL allowance aggregated $ 43.0 million, which represents an increase of $ 38.3 million for the year ended December 31, 2022 . This increased allowance reflects increased loan specific allowances for certain high risk and collateral dependent loans where the fair value of the underlying collateral was less than the amortized cost of the loan, as well as increased uncertainty in the macroeconomic outlook, including weakening credit indicators, inflationary pressures, rising interest rates and market volatility. In determining our CECL allowance, we segment loans with similar characteristics. All of our loans are secured by residential or commercial real estate and, in assessing estimated credit losses, we evaluate various metrics, including, but not limited to, construction type, collateral type, LTV, market conditions of property location and borrower experience and financial strength. The following tables allocate the carrying value of our loan portfolio based on our internal credit quality indicators in assessing estimated credit losses and vintage of origination at the dates indicated: December 31, 2022 Year Originated (1) (dollars in thousands) Carrying Value % of Portfolio 2022 2021 2020 2019 Prior Construction Type Vertical Construction $ 552,468 59.8 % $ 352,355 $ 128,130 $ 33,895 $ 1,928 $ 36,160 Horizontal Development 221,078 24.1 144,082 68,201 8,795 — — Investment 46,536 5.0 46,536 — — — — Rehabilitation 39,422 4.3 12,936 15,009 11,477 — — Land Entitlement 26,132 2.8 4,146 21,986 — — — Bridge 22,611 2.4 19,450 937 — 2,224 — Acquisition 15,195 1.6 13,454 1,741 — — — Total 923,442 100.0 % $ 592,959 $ 236,004 $ 54,167 $ 4,152 $ 36,160 CECL allowance (2) ( 41,492 ) Carrying value, net $ 881,950 (1) Represents the year of either origination or amendment where the loan incurred a full re-underwriting in connection with the amendment . (2) Includes $ 35.0 million in loan specific allowances for loans deemed collateral dependent based on the excess amortized cost over the fair value of the underlying collateral. In addition, $ 1.5 million of the CECL allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our consolidated balance sheet. December 31, 2022 Year Originated (1) (dollars in thousands) Carrying Value % of Portfolio 2022 2021 2020 2019 Prior Collateral Type Apartments $ 191,708 20.8 % $ 134,816 $ 49,944 $ 5,020 $ 1,928 $ — Single Family Housing 133,702 14.5 124,218 9,245 239 — — Townhomes 106,888 11.6 81,393 24,701 794 — — Residential Lots 104,100 11.3 56,675 38,630 8,795 — — Entitled Land 76,251 8.3 54,265 21,986 — — — Condos 71,975 7.8 29,738 2,515 3,562 — 36,160 Commercial 58,515 6.3 13,838 44,677 — — — Mixed Use 50,127 5.4 6,209 30,217 11,477 2,224 — Hotel 30,221 3.3 14,116 — 16,105 — — Offices 18,467 2.0 12,179 — 6,288 — — Unentitled Land 17,262 1.9 16,325 937 — — — Senior Housing 16,595 1.8 16,595 — — — — Duplex 13,639 1.5 13,639 — — — — Commercial Other 11,411 1.2 — 11,411 — — — Retail 9,071 1.0 5,443 1,741 1,887 — — Quadplex 8,932 1.0 8,932 — — — — Commercial Lots 4,018 0.4 4,018 — — — — Triplex 560 0.1 560 — — — — Total 923,442 100.0 % $ 592,959 $ 236,004 $ 54,167 $ 4,152 $ 36,160 CECL allowance (2) ( 41,492 ) Carrying value, net $ 881,950 (1) Represents the year of either origination or amendment where the loan incurred a full re-underwriting in connection with the amendment. (2) Includes $ 35.0 million in loan specific allowances for loans deemed collateral dependent based on the excess amortized cost over the fair value of the underlying collateral. In addition, $ 1.5 million of the CECL allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our consolidated balance sheet. December 31, 2022 Year Originated (1) (dollars in thousands) Carrying Value % of Portfolio 2022 2021 2020 2019 Prior LTV (2) 0 - 40% $ 26,053 2.8 % $ 22,544 $ 3,509 $ — $ — $ — 41 - 45% 29,025 3.1 7,039 21,986 — — — 46 - 50% 42,267 4.6 22,524 13,455 6,288 — — 51 - 55% 144,649 15.7 76,978 58,876 8,795 — — 56 - 60% 107,098 11.6 98,691 8,407 — — — 61 - 65% 456,743 49.5 284,722 112,569 21,364 1,928 36,160 66 - 70% 93,104 10.1 71,638 16,561 2,681 2,224 — 71 - 75% 4,280 0.5 4,280 — — — — 76- 80% 2,540 0.3 2,540 — — — — Above 80% 17,683 1.9 2,003 641 15,039 — — Total 923,442 100.0 % $ 592,959 $ 236,004 $ 54,167 $ 4,152 $ 36,160 CECL allowance (3) ( 41,492 ) Carrying value, net $ 881,950 (1) Represents the year of either origination or amendment where the loan incurred a full re-underwriting in connection with the amendment. (2) Represents LTV as of origination or latest amendment. LTVs above 65 % generally represent loans in contractual default status where we have agreed to extend funds to the borrower above 65 % in order to facilitate successful completion of the construction and return of capital. (3) Includes $ 35.0 million in loan specific allowances for loans deemed collateral dependent based on the excess amortized cost over the fair value of the underlying collateral. In addition, $ 1.5 million of the CECL allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our consolidated balance sheet. December 31, 2021 Year Originated (1) (dollars in thousands) Carrying Value % of Portfolio 2021 2020 2019 2018 2017 Prior Construction Type Vertical Construction $ 478,475 52.5 % $ 234,861 $ 191,896 $ 1,177 $ 2,491 $ 47,789 $ 261 Horizontal Development 196,543 21.5 169,041 27,502 — — — — Acquisition 96,937 10.6 96,937 — — — — — Investment 65,703 7.2 42,509 2,101 — 3,608 17,485 — Rehabilitation 27,023 3.0 11,320 15,703 — — — — Land Entitlement 24,529 2.7 24,529 — — — — — Bridge 22,534 2.5 18,072 2,537 1,925 — — — Total 911,744 100.0 % $ 597,269 $ 239,739 $ 3,102 $ 6,099 $ 65,274 $ 261 CECL allowance (2) ( 10,394 ) Carrying value, net $ 901,350 (1) Represents the year of either origination or amendment where the loan incurred a full re-underwriting in connection with the amendment. (2) Includes $ 0.7 million in loan specific allowances for loans deemed collateral dependent based on the excess amortized cost over the fair value of the underlying collateral. In addition, $ 0.9 million of the CECL allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our consolidated balance sheet. December 31, 2021 Year Originated (1) (dollars in thousands) Carrying Value % of Portfolio 2021 2020 2019 2018 2017 Prior Collateral Type Residential Lots $ 111,644 12.2 % $ 85,219 $ 26,425 $ — $ — $ — $ — Apartments 107,765 11.8 38,232 68,356 1,177 — — — Townhomes 93,300 10.2 51,240 28,979 — 1,017 11,803 261 Mixed Use 85,929 9.5 53,530 30,474 1,925 — — — Single Family Housing 87,902 9.6 84,703 3,049 — — 150 — Condos 64,492 7.1 8,805 18,227 — 1,474 35,986 — Commercial 61,592 6.8 61,592 — — — — — Senior Housing 61,236 6.7 35,899 25,337 — — — — Storage 56,481 6.2 56,481 — — — — — Unentitled Land 46,019 5.0 42,411 — — 3,608 — — Entitled Land 45,098 4.9 27,763 — — — 17,335 — Hotel 31,665 3.5 4,886 26,779 — — — — Offices 15,348 1.7 8,280 7,068 — — — — Commercial Lots 10,227 1.1 6,670 3,557 — — — — Quadplex 9,769 1.1 9,769 — — — — — Commercial Other 9,080 1.0 9,080 — — — — — Retail 7,873 0.9 6,385 1,488 — — — — Duplex 6,324 0.7 6,324 — — — — — Total 911,744 100.0 % $ 597,269 $ 239,739 $ 3,102 $ 6,099 $ 65,274 $ 261 CECL allowance (2) ( 10,394 ) Carrying value, net $ 901,350 (1) Represents the year of either origination or amendment where the loan incurred a full re-underwriting in connection with the amendment. (2) Includes $ 0.7 million in loan specific allowances for loans deemed collateral dependent based on the excess amortized cost over the fair value of the underlying collateral. In addition, $ 0.9 million of the CECL allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our consolidated balance sheet. December 31, 2021 Year Originated (1) (dollars in thousands) Carrying Value % of Portfolio 2021 2020 2019 2018 2017 Prior LTV (2) 0 - 40% $ 53,907 5.9 % $ 32,634 $ — $ — $ 3,608 $ 17,665 $ — 41 - 45% 48,431 5.3 44,380 4,051 — — — — 46 - 50% 63,690 7.0 41,356 21,317 — 1,017 — — 51 - 55% 92,238 10.1 74,978 17,260 — — — — 56 - 60% 79,039 8.7 27,115 40,190 — — 11,473 261 61 - 65% 559,997 61.4 372,645 146,640 3,102 1,474 36,136 — 66 - 70% 645 0.1 645 — — — — — 71 - 80% — 0.0 — — — — — — Above 80% 13,797 1.5 3,516 10,281 — — — — Total 911,744 100.0 % $ 597,269 $ 239,739 $ 3,102 $ 6,099 $ 65,274 $ 261 CECL allowance (3) ( 10,394 ) Carrying value, net $ 901,350 (1) Represents the year of either origination or amendment where the loan incurred a full re-underwriting in connection with the amendment. (2) Represents LTV as of origination or latest amendment. LTVs above 65 % generally represent loans in contractual default status where we have agreed to extend funds to the borrower above 65 % in order to ensure successful completion of the construction and return of capital. (3) Includes $ 0.7 million in loan specific allowances for loans deemed collateral dependent based on the excess amortized cost over the fair value of the underlying collateral. In addition, $ 0.9 million of the CECL allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our consolidated balance sheet. The following tables allocate the carrying value of collateral dependent loans in our loan portfolio to the collateral type at the dates indicated: December 31, 2022 (dollars in thousands) Carrying Value CECL Allowance (1) Carrying Value, net Collateral Type Residential Lots $ 70,664 $ ( 11,519 ) $ 59,145 Condos 42,237 ( 5,892 ) 36,345 Land 21,986 ( 108 ) 21,878 Townhomes 18,296 ( 1,706 ) 16,590 Single Family Housing 16,993 ( 950 ) 16,043 Hotel 16,106 ( 9,151 ) 6,955 Apartments 6,947 ( 978 ) 5,969 Offices 6,288 ( 5,042 ) 1,246 Mixed Use 3,318 ( 1,320 ) 1,998 Total $ 202,835 $ ( 36,666 ) $ 166,169 December 31, 2021 (dollars in thousands) Carrying Value CECL Allowance (1) Carrying Value, net Collateral Type Senior Housing $ 25,337 $ ( 1,103 ) $ 24,234 Entitled Land 17,335 ( 42 ) 17,293 Single Family Housing 1,730 ( 15 ) 1,715 Condos 1,109 ( 673 ) 436 Townhomes 261 ( 1 ) 260 Total $ 45,772 $ ( 1,834 ) $ 43,938 |
Investment in Real Property
Investment in Real Property | 12 Months Ended |
Dec. 31, 2022 | |
Real Estate [Abstract] | |
Investment in Real Property | Note 4 – Investment in Real Property As of December 31, 2022 and 2021, we owned 11 and nine properties or projects, with aggregate carrying value of $ 87.9 and $ 68.1 million, respectively. The following tables provide information about the carrying value of our owned real property at the dates indicated: (dollars in thousands) December 31, 2022 December 31, 2021 Collateral Type Senior Housing $ 49,917 $ — Offices 15,414 19,388 Single Family Housing 8,538 4,134 Townhomes 6,712 9,281 Apartments 5,024 — Residential Lots 2,293 3,012 Condos — 28,441 Retail — 3,811 Total $ 87,898 $ 68,067 December 31, 2022 December 31, 2021 (dollars in thousands) Number of Properties Carrying Value Number of Properties Carrying Value Collateral Type Held for sale 7 $ 24,516 5 $ 52,531 Held for use 4 63,382 4 15,536 Total 11 $ 87,898 9 $ 68,067 For the years ended December 31, 2022, 2021 and 2020, we recorded the operating revenue, expenses, fixed asset depreciation and impairment in our consolidated statement of operations as shown below for investment in real property, held for sale and held for use, respectively: Held for Sale (dollars in thousands) December 31, 2022 December 31, 2021 December 31, 2020 Revenue from operations $ 276 $ — $ — Gain on sale 984 Less: Operating expenses 1,990 101 168 Depreciation (1) 125 — — Impairment 6,111 — — Net loss from investment in real property, held for sale $ ( 6,966 ) $ ( 101 ) $ ( 168 ) (1) Depreciation incurred for a real property before it was reclassified to held for sale. Held for Use (dollars in thousands) December 31, 2022 December 31, 2021 December 31, 2020 Revenue from operations $ 2,523 $ — $ — Less: Operating expenses 3,697 7 — Depreciation 553 — — Impairment 1,485 — — Net loss from investment in real property, held for use $ ( 3,212 ) $ ( 7 ) $ — In April 2022, the Company executed an agreement with an unrelated party to sell a real property with a carrying value of $ 28.4 million for a sales price of $ 29.0 million. As part of the sale, the Company received a promissory note from the purchaser in the principal amount of $ 25.9 million. The note was amended to extend the financing term, resulting in an extension of the maturity date to December 31, 2022 after receiving partial payments on July 1, 2022 and August 31, 2022. In December 2022, the Company amended the loan to extend the maturity date to April 1, 2023 , whereby we agreed to an additional advance of $ 0.4 million. This seller-financed sale of real property was evaluated for derecognition of the transferred assets and income recognition based on whether a sales contract existed and effective control was transferred to the purchaser and it was determined that the transaction met all of the criterion to be recognized as a sale. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 5 – Fair Value Measurements The accounting guidance on fair value measurements and disclosures requires the categorization of fair value measurement into three broad levels of the fair value hierarchy as follows: Level 1 – Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 – Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Our development of fair value estimates, particularly Level 3 fair value assets and liabilities with significant unobservable inputs, involves judgment and a high degree of subjectivity. While we anticipate that our valuation methods are appropriate and consistent with valuation methods used by other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Likewise, due to the general illiquidity of some of these assets and liabilities, subsequent transactions may be at values significantly different from those reported. The following tables present estimated fair values of our financial instruments, as of the date indicated, whether or not recognized or recorded in the consolidated balance sheets at the periods indicated: December 31, 2022 Fair Value Measurements Using (dollars in thousands) Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 54,964 $ 54,964 $ 54,964 $ — $ — Mortgage notes receivable, net 881,950 865,304 — — 865,304 Interest and fees receivable, net 14,775 14,775 — 14,775 — Financial Liabilities Senior unsecured notes, net 97,789 99,990 99,990 — — Private placement warrant liability 25 25 — 25 — December 31, 2021 Fair Value Measurements Using (dollars in thousands) Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 132,889 $ 132,889 $ 132,889 $ — $ — Mortgage notes receivable, net 901,350 901,350 — — 901,350 Interest and fees receivable, net 17,526 17,526 — 17,526 — Financial Liabilities Senior unsecured notes, net 97,223 100,000 100,000 — — Private placement warrant liability 1,838 1,838 — 1,838 — The following table sets forth assets measured and reported at fair value on a nonrecurring basis as of December 31, 2022 and 2021. All of these values are categorized as Level 3. The table also contains information about valuation methodologies and inputs for: Carrying Value Fair Value (dollars in thousands) December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Valuation Technique Unobservable Inputs Range of Inputs Investment in real property held for sale (1) $ 14,628 $ — $ 15,075 $ — Collateral valuations Discount to appraised value based on comparable market prices, broker opinion of value, discounted cash flows or capitalization rate applied to estimate net operating income 0 - 10 % Investment in real property held for use (1) $ 25,167 $ — $ 33,379 $ — Collateral valuations Discount to appraised value based on comparable market prices, broker opinion of value, discounted cash flows or capitalization rate applied to estimate net operating income 0 - 10 % Collateral dependent loans, net of allowance for credit losses (1) 81,470 436 87,622 835 Collateral valuations Discount to appraised value based on comparable market prices or broker opinion of value, discounted cash flows or capitalization rate applied to estimate net operating income 0 - 10 % Total $ 121,265 $ 436 $ 136,076 $ 835 (1) Previously reported amounts included all real properties and collateral dependent loans regardless of whether an adjustment was required to mark to fair value in the reporting period. The current disclosure represents only those loans and properties for which an adjustment was required to report at fair value on a nonrecurring basis during the reporting periods. Fair Value on a Recurring Basis The private placement warrants are carried at fair value. Initially, the fair value of the private placement warrants was classified as Level 3 within the fair value hierarchy as it was valued using a lattice model, which primarily incorporates observable inputs such as our common stock price, exercise price, term of the warrant, dividend yield and the risk-free rate; however, it also incorporates an assumption for equity volatility. For the unobservable volatility input, we solved for the volatility of the public warrants using the lattice model that captures the redemption right and analyzed the calculated equity volatility based on the volatility of the common stock of comparable public companies. This valuation methodology resulted in the same value per share for both the public warrants and private placement warrants, indicating the redemption right, a feature excluded from private placement warrants, did not change the valuation; and therefore, the quoted price per share of the public warrants was used to value the private placement warrants on a recurring basis beginning September 30, 2021. As we utilized observable inputs in the valuation, specifically a quoted price for a similar item in an active market, we re-classified the private placement warrant liability from a Level 3 to a Level 2 within the fair value hierarchy as of September 30, 2021. The fair value of the 5.2 million private placement warrants, estimated using the quoted share price of the public warrants, was approximately $ 0.001 and $ 0.09 per warrant or $ 0.005 and $ 0.35 per share to arrive at $ 0.02 and $ 1.8 million, respectively, as of December 31, 2022 and 2021. Refer to Note 9 for additional details on the private placement warrants. Fair Value on a Nonrecurring Basis For our investments in real property held for sale, we compare the cost basis to the fair value of real properties at each reporting period, based upon the most recent independent third-party appraisals of value discounted based upon our experience with actual liquidation values. These discounts to the appraisals generally range from 0 % to 10 % and are considered unobservable inputs in Level 3 within the fair value hierarchy. Any decline in the fair value of real property held for sale will be recorded in a valuation account to offset the cost basis and carry at fair value on a non-recurring basis. Similarly, whenever changes in circumstances indicate that the carrying amounts may not be recoverable for our investments in real property held for use, we evaluate the undiscounted net cash flows that are expected to be generated from the property, including any estimated proceeds from the eventual disposition of the property. If the carrying value of a property held for use exceeds its undiscounted net cash flows, an impairment loss is recognized for the excess of the carrying value of the property over the estimated fair value of the property and will be recorded in a valuation account on a non-recurring basis. The fair value of collateral dependent loans is based upon the most recent independent third-party appraisal of value, discounted between 0% to 10% based upon our experience with actual liquidation values. For certain collateral dependent loans, where a recent appraisal is either unavailable or not most representative of fair value, the fair value is based on a broker opinion of value including a capitalized income analysis and replacement cost analysis considering historical operating results, market rents, vacancy rates, capitalization rates, land cost comparisons, market trends and economic conditions. The assessment of fair value of real property is subject to uncertainty and, in certain cases, sensitive to the selection of comparable properties. As the result of using unobservable inputs in the valuation, we classify collateral dependent as Level 3 within the fair value hierarchy. Impairment indicators may subject goodwill to nonrecurring fair value measurements when certain triggering events occur. In the fourth quarter of 2022, the Company recorded impairment charges for goodwill. The implied fair value of our goodwill was estimated using both the discounted cash flow and market multiple approaches, which are Level 3 valuation techniques. Refer to Note 6 for additional details on significant inputs used in our analysis. Fair Value Disclosure Only For our financial instruments, including cash equivalents, which are classified under Level 1 within the fair value hierarchy as well as interest and fees receivable, accounts payable and accrued liabilities which are classified under Level 2 within the fair value hierarchy, the carrying amounts approximate fair value due to their short-term maturities. Our mortgage notes receivable are evaluated for expected credit losses and are presented net of an allowance for credit losses. We determined the fair value of our mortgage notes receivable based on a discounted cash flow methodology, taking into consideration various factors including discount rates, interest rate spreads and third-party appraisals for estimating as-complete appraised values. The interest rate spreads range from 0.01 % to 0.14 %, with a weighted average spread of 0.04 %. As we utilize unobservable inputs, we classify mortgage notes receivable as Level 3 within the fair value hierarchy. Our senior unsecured notes were purchased at par by investors in a private placement, but trade in the secondary market. Fair value is estimated using current market quotes received from active markets and we classify as Level 1 within the fair value hierarchy. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 6 – Goodwill and Intangible Assets All of our goodwill and intangibles relate to the business combination (“Business Combination”), via a special purpose acquisition company that closed on November 14, 2019. In the first quarter of 2020, based on additional information obtained about facts and circumstances that existed as of November 14, 2019, we recorded a measurement period adjustment to reduce the fair value of intangible assets in the form of customer relationships from $ 6.0 to $ 1.0 million. This adjustment increased the preliminary amount of goodwill previously recorded by $ 5.0 million resulting in $ 137.0 million of goodwill as of September 30, 2020. As a result of this adjustment to preliminary values, $ 0.9 million of amortization of intangible assets recorded in 2019 was reversed in the first quarter of 2020. Goodwill We test our reporting unit for goodwill impairment annually in the fourth quarter, or upon a triggering event. Our qualitative analysis performed in the fourth quarter of 2022 considered continued interest rate hikes by the Federal Reserve to curb rising inflation and resulting market volatility, a significant slowdown in real estate transactions and less capital available in the marketplace to finance real estate projects and further decreases in our stock price. We concluded that it was more likely than not that the fair value of our reporting unit was less than its carrying amount as of December 31, 2022 and, therefore, a quantitative analysis was necessary. The quantitative analysis was based on income and market multiples approaches. Under the income approach, the fair value of a reporting unit was estimated based on the present value of estimated future cash flows covering discrete forecast periods as well as terminal value determinations. We prepared cash flow projections based on management's estimates of long-term growth rates, pre-tax return on earnings, earning asset growth and return on tangible equity, taking into consideration industry and market conditions. The discount rate was based on the weighted-average cost of capital adjusted for the relevant risk associated with business-specific characteristics and the uncertainty related to the reporting unit's ability to execute on the projected cash flows. Under the market approach, fair value was estimated based on market multiples of revenue and earnings derived from comparable publicly traded companies with similar operating and investment characteristics as the reporting unit, as well as observable market values of our reporting unit based on any third-party attributions of value to such unit in the context of potential transactions with us. We weighted the fair value derived from the market approach commensurate with the level of comparability of these publicly traded companies to the reporting unit. Our 2022 annual goodwill impairment analysis resulted in impairment charges for goodwill related to the Broadmark lending business which is our only reporting unit. The decline in fair value of the reporting unit below its carrying value resulted in changes from expected future cash flows as compared to prior year projections which is more broadly a result of macroeconomic factors and other operational challenges as well as an increase in cost of capital. As a result, we recorded a goodwill impairment charge of $ 137.0 million in the fourth quarter of 2022. The reporting unit has no remaining goodwill as of December 31, 2022 and an excess of fair value over carrying value of net assets of 0 % as of the annual test date. The business is facing challenges reflected in the results for the year ended December 31, 2022. In the later part of the third quarter of 2022 and continuing into the fourth quarter of 2022, market interest rates rose markedly and rapidly primarily as a result of the Federal Reserve's actions to curb rapidly rising inflation. This led to a significant slowdown in real estate transactions and less capital available in the marketplace to finance real estate projects. During the fourth quarter, rising interest rates and macroeconomic uncertainties in the capital markets lead to a significant decrease in real estate sales in the marketplace and in the availability of capital from traditional lenders for longer-term financing of completed construction and development projects, which negatively affected our borrowers' ability to sell or refinance our collateral and repay our loans. As a result, this led us to have a higher percentage of defaults go into non-accrual, additional properties foreclose or start the foreclosure process and the decision to slow origination pace to preserve liquidity. The following table sets forth the changes in the carrying amount of goodwill: (dollars in thousands) Goodwill Goodwill as of December 31, 2020 $ 136,965 Goodwill as of December 31, 2021 136,965 Less: Impairment 136,965 Goodwill as of December 31, 2022 $ — Intangible Assets The following table summarizes the balances of intangible assets as of December 31, 2022 and 2021: (dollars in thousands) December 31, 2022 December 31, 2021 Asset Type Customer relationships $ 1,000 $ 1,000 Less: Accumulated amortization 1,000 718 Intangible assets, net $ — $ 282 |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | Accounts Payable and Accrued Liabilities The follo wing table presents a summary of accounts payable and accrued liabilities as of December 31, 2022 and 2021: (dollars in thousands) December 31, 2022 December 31, 2021 Accounts payable and accrued liabilities Borrower deposits $ 5,519 $ 925 Accounts payable and other liabilities 4,223 $ 4,315 Accrued salaries, bonus and commissions. 2,272 $ 2,034 Allowance for credit losses on unfunded commitments 1,475 906 Total $ 13,489 $ 8,180 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Note 8 - Debt On February 19, 2021, we entered into a credit agreement with a syndicate of lenders and JPMorgan Chase Bank, N.A., as administrative agent for the lenders, providing for a $ 135.0 million revolving credit facility maturing on February 19, 2024 . Advances under the revolving credit facility bear interest at prime rate plus 2.75 % and the facility has a commitment fee of 1.0 % of unfunded commitment per annum. We incurred fees of approximately $ 4.5 million in relation to the revolving credit facility, which were capitalized as deferred financing costs on the consolidated balance sheets and are being amortized over the three-year term. As of December 31, 2022, the revolving credit facility has no principal outstanding. Our obligations under the revolving credit facility are secured by substantially all of the Company’s assets. The revolving credit facility contains covenants customary for financings of this type, including limitations on the incurrence of indebtedness, liens, asset dispositions, acquisitions, mergers and consolidations, certain dividends, distributions, stock repurchases and other payments, advances and investments, payments to affiliates, optional prepayments and other modifications of certain other indebtedness, and amendments, terminations and waivers of certain material agreements, as well as compliance with leverage and coverage ratios and maintenance of minimum tangible net worth. Among other things, the credit agreement provides that we may not pay cash dividends that would result in non-compliance with the financial covenants under the credit agreement or during an event of default under the credit agreement, except in the case of defaults other than payment defaults, for dividends in amounts necessary to maintain our REIT status. The revolving credit facility contains events of default customary for financings of this type, including failure to pay principal, interest and other amounts, materially incorrect representations or warranties, failure to observe covenants and other terms of the revolving credit facility, cross-defaults to other indebtedness, bankruptcy, insolvency, material judgments, certain ERISA violations, changes in control and failure to maintain REIT status, in some cases subject to customary grace periods. On November 4, 2022, the credit agreement governing the revolving credit facility was amended to allow for repurchases of shares of the Company’s common stock, subject to certain limitations. On November 12, 2021, we completed a private offering of $ 100.0 million of senior unsecured notes. Interest on the notes accrues at the fixed rate of 5.0 % per annum, which is payable semi-annually on May 15 and November 15. The notes may be prepaid prior to their maturity date, subject to the payment of applicable premiums. The note purchase agreement governing the notes contains financial covenants that require compliance with leverage and coverage ratios and maintenance of minimum tangible net worth, as well as other affirmative and negative covenants that may limit, among other things, our ability to incur liens and enter into mergers or transfer all or substantially all of our assets. The note purchase agreement also includes customary representations and warranties and customary events of default. The amounts outstanding under the notes will be due on November 15, 2026 . We incurred fees of approximately $ 2.9 million in relation to the issuance of the notes, which are amortized to interest expense over the remaining life of the respective loan term. The following table presents the carrying values of our senior unsecured notes as of the periods indicated: (dollars in thousands) December 31, 2022 December 31, 2021 Principal $ 100,000 $ 100,000 Debt issuance costs ( 2,861 ) ( 2,855 ) Amortization of debt issuance costs 650 78 Total notes, net $ 97,789 $ 97,223 The following table summarizes the components of interest expense related to our senior unsecured notes and revolving credit facility for the periods indicated: Year Ended December 31, 2022 December 31, 2021 (dollars in thousands) Amortization of Deferred Debt Issuance Costs Interest on Borrowings Undrawn Fees Amortization of Deferred Debt Issuance Costs Interest on Borrowings Undrawn Fees 5.0% senior unsecured notes $ 572 $ 4,986 $ — $ 78 $ 694 $ — Revolving credit facility 1,510 151 1,419 1,255 107 1,186 Total $ 2,082 $ 5,137 $ 1,419 $ 1,333 $ 801 $ 1,186 |
Stockholders' Equity and Earnin
Stockholders' Equity and Earnings per Common Share | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity and Earnings per Common Share | Note 9 - Stockholders’ Equity and Earnings per Common Share Stockholders' Equity Stockholders’ Voting Rights Holders of our common stock are entitled to one vote for each share. Equity Offering Program On March 2, 2021, we entered into a distribution agreement with J.P. Morgan Securities LLC, Barclays Capital Inc., B. Riley Securities, Inc., JMP Securities LLC and Raymond James & Associates, Inc. as sales agents, to sell shares of our common stock having an aggregate gross sales price of up to $ 200,000,000 , from time to time, through an “at-the-market” equity offering program (the “ATM Program”). We have no obligation to sell any shares under the ATM Program and sold no shares under the ATM Program during the year ended December 31, 2022 and 2021. Stock Repurchase Authorizations On November 7, 2022, the Board of Directors approved a stock repurchase program authorizing the Company to repurchase up to $ 75.0 million of its common stock, par value $ 0.001 per share. Repurchases under the stock repurchase program may be made at management’s discretion from time to time on the open market, in privately negotiated transactions or otherwise, in each case subject to compliance with all Securities and Exchange Commission rules and other legal requirements, and may be made in part under one or more Rule 10b5-1 plans, which permit stock repurchases at times when the Company might otherwise be precluded from doing so. The timing and amount of any repurchase transactions will be determined by the Company’s management based on its evaluation of market conditions, share price, legal requirements and other factors. There is no guarantee as to the exact number of shares that will be repurchased under the stock repurchase program, or that any repurchases will occur. In addition, the stock repurchase program may be suspended, extended or terminated by the Company at any time without prior notice. As of December 31, 2022, $ 70.0 million remained available for future repurchases. Public and Private Warrants As of December 31, 2022 and 2021 there were 41.7 million public warrants outstanding to purchase one-fourth of a share and 5.2 million private placement warrants outstanding to purchase one share of common stock. In the aggregate, we have outstanding warrants to purchase approximately 15.6 million shares of common stock at a price of $ 11.50 per whole share. Settlement of outstanding warrants will be in shares of our common stock, unless we elect (solely in our discretion) to settle warrants we have called for redemption in cash, and subject to customary adjustment in the event of business combinations and certain tender offers. Unless earlier redeemed, the public warrants will expire on November 19, 2024. The liability for the private placement warrants was $ 0.02 million as of December 31, 2022 and is included in accounts payable and accrued liabilities in the consolidated balance sheet. Earnings per Common Share The table below presents the computation of basic and diluted net earnings per share of common stock for the periods presented: Year Ended (dollars in thousands, except share and per share data): December 31, 2022 December 31, 2021 Net (loss) income $ ( 116,391 ) $ 82,488 Basic weighted-average shares of common stock outstanding 132,841,196 132,579,289 Dilutive effect of share-based compensation – unvested restricted stock units (1) — 87,213 Diluted weighted-average shares of common stock outstanding 132,841,196 132,666,502 Basic earnings per common share $ ( 0.88 ) $ 0.62 Diluted earnings per common share $ ( 0.88 ) $ 0.62 (1) Amounts exclude all potential common and common equivalent shares for periods when there is a net loss from continuing operations. For the periods presented, th e following common stock equivalents were excluded from the calculations of diluted earnings per share because their effect would have been anti-dilutive: Year Ended December 31, 2022 December 31, 2021 Weighted-average restricted stock units outstanding 27,091 199,709 Unexercised public warrants and private placement warrants 15,604,192 15,604,304 Total stock equivalents excluded 15,631,283 15,804,013 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10 - Income Taxes The Manager has elected to be treated as a TRS and this election applies to the wholly-owned subsidiaries of the Manager, including the Private REIT Manager. Having TRSs permit us to participate in certain activities from which REITs are generally precluded, as long as these activities meet specific criteria, are conducted within the parameters of certain limitations established by the Internal Revenue Code of 1986, as amended (the “Code”) and are conducted in entities which elect to be treated as taxable subsidiaries under the Code. To the extent these criteria are met, we will continue to maintain the qualification as a REIT. We generally must distribute annually at least 90% of our net taxable income, subject to certain adjustments and excluding any net capital gain, in order for U.S. federal income tax not to apply to earnings that we distribute. To the extent that we satisfy this distribution requirement but distribute less than 100% of our net taxable income, we will be subject to U.S. federal income tax on our undistributed taxable income. In addition, we will be subject to a 4 % nondeductible excise tax if the actual amount that we pay out to our stockholders in a calendar year is less than a minimum amount specified under U.S. federal tax laws. Our qualification as a REIT also depends on our ability to meet various other requirements imposed by the Code, which relate to organizational structure, diversity of stock ownership, and certain restrictions with regard to the nature of assets and the sources of income. Even if we qualify as a REIT, we may be subject to certain U.S. federal income and excise taxes and state and local taxes on our income and assets. If we fail to maintain our qualification as a REIT for any taxable year, we may be subject to material penalties as well as federal, state, and local income tax on our taxable income at regular corporate rates and we would not be able to qualify as a REIT for the subsequent four full taxable years. As of December 31, 2022 and 2021, we were in compliance with all REIT requirements. Based on our evaluation, we concluded that there are no significant uncertain tax positions requiring recognition in our consolidated financial statements of a contingent tax liability for uncertain tax positions. Additionally, there were no amounts accrued for penalties or interest as of or during the periods presented in the accompanying consolidated financial statements. The state and local tax jurisdictions for which we are subject to tax-filing obligations recognize our status as a REIT, and therefore, we generally do not pay income tax in such jurisdictions. We may, however, be subject to certain minimum state and local tax filing fees as well as certain excise or business taxes. Our TRSs are subject to U.S. federal, state and local income taxes. |
Equity Incentive Plan
Equity Incentive Plan | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Equity Incentive Plan | Note 11 - Equity Incentive Plan Stock Incentive Plan The Broadmark Realty 2019 Stock Incentive Plan (the “Plan”) allows for the issuance of up to 5,000,000 stock options, stock appreciation rights, restricted stock awards, restricted stock units or other equity-based awards or any combination thereof to the directors, employees, consultants or any other party providing services to us. The Plan is administered by the compensation committee of our board of directors. As of December 31, 2022 , there were 3,291,351 shares available to be awarded under the Plan. Awards made to our employees and directors typically consist of restricted stock units (“RSUs”) with only a service vesting condition. Awards to certain of our employees contain both service vesting and market conditions and are referred to as performance restricted stock units (“pRSUs”). The RSUs granted under the Plan generally vest from one to three years depending on the terms of the specific award. All RSUs awarded will be settled upon vesting in shares of our common stock. For the Company's pRSUs, in addition to service conditions, the ultimate number of shares to be earned depends on the achievement of market-based performance conditions. The market-based performance conditions are based on the Company's achievement of a relative total shareholder return (“TSR”) performance requirement, on a percentile basis, compared to a defined group of peer companies over a three year performance period, or contingent upon achieving specific stock price milestones over a five year performance period. The Company uses a Monte Carlo simulation model to determine the grant-date fair value of awards with market-based performance conditions. The weighted average fair value and assumptions used to value the pRSU awards granted with market-based performance conditions are as follows: Year Ended December 31, 2022 December 31, 2021 Performance share fair value $ 6.74 $ 8.20 Risk-free interest rate 1.74 % 0.27 % Expected volatility 30.48 % 25.71 % Expected life (in years) 2.85 2.77 Expected dividend yield 9.82 % 8.13 % Dividend equivalents are not accrued or paid on unvested equity awards that were granted to employees, executive officers and directors and accordingly those unvested equity awards are not considered participating securities. If an award granted under the Plan expires or terminates, the shares subject to any portion of the award that expires or terminates without having been exercised or paid will again become available for the issuance of additional awards. The following tables summarize the activity related to RSUs and pRSUs during 2022: Shares Weighted Average Grant Date Fair Market Value Unvested RSUs outstanding as of December 31, 2020 434,143 Granted 295,063 $ 10.08 Vested ( 231,053 ) $ 10.61 Forfeited ( 13,837 ) $ 10.58 Unvested RSUs outstanding as of December 31, 2021 484,316 Granted 750,038 $ 6.02 Vested ( 285,853 ) $ 10.01 Forfeited ( 200,589 ) $ 7.31 Unvested RSUs outstanding as of December 31, 2022 747,912 Shares Weighted Average Grant Date Fair Market Value Unvested pRSUs outstanding as of December 31, 2020 — Granted 113,958 $ 8.20 Unvested pRSUs outstanding as of December 31, 2021 113,958 Granted 276,679 $ 6.74 Forfeited ( 182,976 ) $ 7.07 Unvested pRSUs outstanding as of December 31, 2022 207,661 As of December 31, 2022, there was $ 4.1 million of net unrecognized compensation cost related to unvested stock-based compensation arrangements. This compensation will be recognized on a straight-line basis over a weighted-average recognition period of 1.5 years. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Note 12 - Commitments and Contingencies The following table illustrates our contractual obligations and commercial commitments by due date as of December 31, 2022: (dollars in thousands) Total Less than 1 year 1-3 years 3-5 years More than 5 years Construction holdbacks (1) $ 429,920 $ 261,243 $ 168,677 $ — $ — Operating lease obligations (2) 9,930 887 2,018 2,140 4,885 Total $ 439,850 $ 262,130 $ 170,695 $ 2,140 $ 4,885 (1) The funding timing and amounts of construction holdbacks are uncertain as these commitments relate to loans for construction costs and depend on the progress and performance of the underlying projects. In addition, $ 22.8 million of holdbacks are excluded from this table as they represent capital expenditures required to complete construction for defaulted loans that we are no longer required to pay. (2) The total operating lease obligation includes $ 2.4 million of imputed interest. Construction Loans Our commitments and contingencies include usual obligations incurred by real estate lending companies in the normal course of business, including construction holdbacks as disclosed in Note 3. Lease Commitments On March 18, 2020, we entered into a non-cancelable operating lease agreement for our office space in Seattle with an original lease period expiring in January 2032, which includes an option to extend the lease term for an additional five years. We have concluded that the renewal option is not reasonably certain of being exercised, therefore, the renewal is not included in the right of use asset and lease liability. The lease commencement date was in the first quarter of 2021. The total future cash payments included in the measurement of our operating lease liabilities, net of lease incentives, was $ 11.7 million at inception of the lease. The right-of-use assets obtained in exchange for the new operating lease obligation and the tenant improvements were $ 6.4 and $ 2.0 million, respectively. The discount rate for the operating lease was 6 % , resulting in an initial imputed interest amount of $ 3.3 million. Legal Proceedings From time to time, we are named as a defendant in legal actions relating to transactions conducted in the ordinary course of business. Although there can be no assurance of the outcome of such legal actions, in the opinion of management, we do not have a potential liability related to any current legal proceeding or claim that would individually or in the aggregate materially affect our results of operations, financial condition or cash flows. Concentration Risk Our loan portfolio as of December 31, 2022 is generally secured by first deed of trust liens on residential and commercial real estate located in 20 states and the District of Columbia. Our loan portfolio is also concentrated within ten counties, the largest being King County in Washington. As of December 31, 2022 and 2021, the top ten counties make up 46.7 % of the total committed amount of loans in our total portfolio. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | Note 13 - Employee Benefit Plan In 2022, we adopted a defined contribution 401(k) retirement plan covering Broadmark employees who have met certain eligibility requirements (the “Broadmark 401(k) Plan”). Eligible employees may contribute pre-tax compensation up to a maximum amount allowable under Internal Revenue Service limitations. Employee contributions and earnings thereon vest immediately. We currently match 3.5 % on employee contributions of up to 6 % of their annual compensation. The total expense related to the Broadmark 401(k) Plan was $ 0.3 million for the year ended December 31, 2022 . |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 14 - Related Party Transactions In August 2021, in connection with the liquidation of the Private REIT, all participations in mortgage notes receivable held by the Private REIT were offered to and purchased for cash by the Company at the settlement value which approximated fair value of $ 43.5 million. As of September 30, 2021, the Private REIT had distributed the net assets in excess of cash required to discharge liabilities (including accrued liabilities for liquidation costs) to its investors based on their relative percentage interests. The Private REIT Manager, acting as liquidator, was responsible for discharging the Private REIT’s remaining liabilities and winding up its affairs, which was completed in the fourth quarter of 2021. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 15 - Subsequent Events Dividend Declaration On January 15, 2023, our board of directors declared a monthly cash dividend of $ 0.035 per common share payable on February 15, 2023 to stockholders of record as of January 31, 2023, and on February 15, 2023, our board of directors declared a cash dividend of $ 0.035 per common share payable on March 15, 2023 to stockholders of record as of February 28, 2023. Investment in Real Property On January 24, 2023, the Company acquired via a deed-in-lieu of foreclosure an 84,378 square foot luxury apartment property in Colorado. The property previously served as collateral for a loan held for investment with a carrying value of $ 33.4 million, net of a CECL reserve of $ 2.8 million at December 31, 2022. On February 9, 2023 the Company acquired via a deed-in-lieu of foreclosure a 5.4 acre property in Illinois. The property previously served as collateral for a loan held for investment with a carrying value of $ 15.0 million, net of a CECL reserve of $ 0.3 million at December 31, 2022. On February 10, 2023, the Company acquired via foreclosure a 70.6 acre property in Utah. The property previously served as collateral for a loan held for investment with a carrying value of $ 8.5 million, net of a CECL reserve of $0.3 million at December 31, 2022. On February 15, 2023, the Company acquired via foreclosure a 123.4 acre property in Colorado. The property previously served as collateral for a loan held for investment with a carrying value of $ 9.5 million, net of a CECL reserve of $ 0.4 million at December 31, 2022. Agreement and Plan of Merger On February 26, 2023, the Company, Ready Capital Corporation (“Ready Capital”) and Ready Capital Merger Sub, LLC (“Merger Sub”) entered into an Agreement and Plan of Merger (the “Agreement”), pursuant to which the Company will merge with and into Merger Sub and each share of the Company’s common stock will be converted into 0.47233 shares of Ready Capital common stock. The transaction is expected to close during the second quarter of 2023, subject to the respective approvals by the stockholders of Ready Capital and the Company and other customary closing conditions. Ready Capital is a multi-strategy real estate finance company that originates, acquires finances, and services small-to-medium balance commercial loans and is headquartered in New York, New York. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements include Broadmark Realty Capital Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. These consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”). |
Principles of Consolidation | Principles of Consolidation Broadmark Realty consolidates those entities in which it has control over significant operating, financial and investing decisions of the entity, as well as those entities deemed to be variable interest entities (“VIEs”), if any, in which Broadmark Realty is determined to be the primary beneficiary. Broadmark Realty is not the primary beneficiary of, and therefore does not consolidate, any VIEs in the accompanying consolidated financial statements. The Private REIT was determined to be a voting interest entity for which we, through our wholly-owned subsidiary who previously acted as manager with no significant equity investment, did not hold a controlling interest in and, therefore, did not consolidate. Furthermore, the Private REIT's participation in loans originated by us met the characteristics of a participating interest and the criterion for sale accounting in accordance with GAAP and therefore, the loans were derecognized from our consolidated financial statements. The Private REIT was liquidated in August 2021 and all participations in mortgage notes receivable held by the Private REIT were purchased for cash by the Company at the settlement value which approximated fair value. |
Reclassifications | Reclassifications Certain amounts in our prior period consolidated financial statements have been reclassified to conform to the presentation of our current period consolidated financial statements. These reclassifications had no effect on our previously reported net income or stockholders’ equity. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts and disclosures at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. The most significant estimates relate to the expected credit losses on our loans, the fair value of financial instruments, goodwill impairment, exit prices for collateral dependent loans and the fair value of investments in real property. Accordingly, actual results could differ from those estimates. For certain real properties, where a recent appraisal is either unavailable or not most representative of fair value, the fair value of the “as complete” property is based on a broker opinion of value including a capitalized income analysis and replacement cost analysis considering market rents, vacancy rates, capitalization rates, land cost comparisons, market trends and economic conditions. Depending on the stage of the underlying property, we also consider estimated costs to complete remaining construction and to lease up the finished property. The assessment of fair value of real property is subject to uncertainty and, in certain cases, sensitive to the selection of comparable properties. |
Certain Significant Risks and Uncertainties | Certain Significant Risks and Uncertainties In the normal course of business, we encounter two primary types of economic risk in the form of credit and market risks. Credit risk is the risk of default on our investment in mortgage notes receivable resulting from a borrower's inability or unwillingness to make contractually required payments. Market risk is the risk of declining real estate values for the collateral underlying our loans which may make it more difficult for existing borrowers to remain current on their payment obligations, reduce the speed or ability for our loans to be repaid through the sale or refinance of the collateral and increase the likelihood that we will incur losses on our loans in the event of default as the value of collateral may be insufficient to cover our investment in the loan. We believe that the carrying values of our loans reasonably consider these risks. In addition, we are subject to significant tax risks. If we were to fail to qualify as a REIT in any taxable year, we would be subject to U.S. federal corporate income tax, which could be material. We operate in a dynamic industry and, accordingly, can be affected by a variety of factors. For example, we believe that changes in any of the following areas could have a significant negative effect on us in terms of our future financial position, results of operations or cash flows: the economy in the areas we operate; the stability of the real estate market and the impact of interest rate changes; competition in our market; changes in government regulation affecting our business; public health crises, like the COVID-19 pandemic; natural disasters, catastrophic events and the physical effects of climate change; and our ability to attract and retain qualified employees and key personnel, among other things. |
Reportable Segments | Reportable Segments We operate the business as one reportable segment. Our principal business activities are related to the origination underwriting and serving of loans secured by real estate as well the investment in real property held for sale and use. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of 90 days or less at the date of purchase to be cash equivalents. We have a cash management sweep account repurchase agreement, whereby our bank nightly sweeps cash in excess of $ 750,000 , sells us specific U.S. government agency securities and then repurchases these securities the next day. We maintain our cash and cash equivalents with financial institutions, which are insured up to a maximum of $ 250,000 per account as of December 31, 2022 and 2021 . The balances in these accounts may exceed the insured limits. There were no restrictions on cash as of December 31, 2022 or 2021 . |
Mortgage Notes Receivable | Mortgage Notes Receivable Mortgage notes receivable (referred to herein as “mortgage notes receivable”, “construction loans”, “loans”, or “notes”) are classified as held for investment , as we have the intent and ability to hold until maturity or payoff and are carried in the consolidated balance sheets at amortized cost, net of construction holdbacks, interest reserves, allowance for credit losses and deferred origination and amendment fees as described in Note 3. |
Current Expected Credit Losses Allowance | Current Expected Credit Losses Allowance We adopted the current expected credit loss (“CECL”) standard during the year ended December 31, 2020. The initial CECL allowance adjustment of $ 2.0 million was recorded effective January 1, 2020 as a cumulative-effect of change in accounting principle through a direct charge to accumulated deficit on our consolidated statements of stockholders’ equity; however, subsequent changes to the CECL allowance are recognized in our consolidated statements of operations. We record an allowance for credit losses in accordance with the CECL standard on our loan portfolio, including unfunded construction holdbacks, on a collective basis by assets with similar risk characteristics. In addition, for assets that are classified as collateral dependent where (1) we have begun a foreclosure, (2) bankruptcy is declared, (3) we have elected to pursue the appointment of a receiver, (4) Loan-to-value (“LTV”) or current LTV is greater than 100% or (5) we intend to obtain ownership of the property, we continue to record loan specific allowances based on the fair value of the collateral for expected credit losses under the CECL standard. Given the short-term nature of our loans, we evaluate the most recent external appraisal and, depending on the age of the appraisal, may order a new appraisal or, where available, will evaluate against existing comparable sales or other pertinent information to estimate the fair value of the collateral for such loans. The CECL standard requires an entity to consider historical loss experience, current conditions, and a reasonable and supportable forecast of the economic environment. The Company utilizes a probability of default/loss given default (“PD/LGD”) method for estimating current expected credit losses. In accordance with the PD/LGD method, an annual historical loss rate is applied to the amortized cost of an asset or pool of assets over the remaining expected life. The PD/LGD method requires consideration of the timing of expected future funding of existing commitments and repayments over each asset’s remaining life. An annual loss factor, adjusted for macroeconomic estimates, is applied over each subsequent period and aggregated to arrive at the CECL allowance. In determining the CECL allowance, we considered various factors including (1) historical loss experience in our portfolio, (2) historical loss experience in the commercial real estate lending market, (3) loan specific losses for loans deemed collateral dependent based on excess amortized cost over the fair value of the underlying collateral (4) timing of expected pay offs including prepayments and extensions where reasonably expected and (5) our current and future view of the macroeconomic environment. We utilize a reasonable and supportable forecast period equal to the contractual term of the loan plus short-term extensions of one to three months that are reasonably expected for construction loans. Management estimates the allowance for credit losses using relevant information, from internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. The allowance for credit losses is maintained at a level sufficient to provide for expected credit losses over the life of the loan based on evaluating historical credit loss experience and making adjustments to historical loss information for differences in the specific risk characteristics in the current loan portfolio. The CECL allowance related to the principal outstanding is presented within mortgage notes receivable, net and for unfunded commitments is within accounts payable and accrued liabilities in our consolidated balance sheets. We have made an accounting policy election to exclude accrued interest receivable, included in interest and fees receivable, net on our consolidated balance sheets, from the amortized cost basis of the related mortgage notes receivable in determining the CECL allowance, as any uncollectable accrued interest receivable is written off either when the collateral underlying the loan is sold or upon transfer to real estate owned. No interest income is recognized on mortgage notes receivable that are in contractual default unless the collectability of all principal is not in doubt and collection of accrued amounts is reasonably assured or paid in cash. In addition, if a loan is deemed collateral dependent or high risk, it is placed on non-accrual status with interest income recognized on a cash-basis where principal collection is not in doubt. |
Deferred Income | Deferred Income Deferred income represents the amount of our origination, loan servicing and amendment fees that have been deferred and will be recognized in income over the contractual maturity of the underlying loan. Origination and loan servicing fees are included in the total commitment to the borrower and financed at the time of loan origination. Amendment fees are either included in the total commitment to the borrower and financed at the time of the loan amendment or are billed to the borrower when the loan is amended and not capitalized into the principal outstanding. Deferred origination, loan servicing and amendment fees capitalized into the principal outstanding are included within mortgage notes receivable, net on the consolidated balance sheets. Deferred amendment fees that are not included in the principal outstanding are presented within interest and fees receivable, net in the consolidated balance sheets. |
Interest and Fees Receivable | Interest and Fees Receivable Interest on performing loans is accrued and recognized as interest income at the contractual rate of interest, or at the contractual rate of monthly minimum interest, if applicable. Extension fees are charged when we agree to extend the maturity dates of loans. In addition, late fees are charged when borrower payments are contractually past due. We monitor each note’s outstanding interest and fee receivables and, based on historical performance, generally reserve against the balance after a receivable is greater than 60 days past due unless collectability of all amounts due is reasonably assured. |
Real property | Real Property To maximize recovery against a defaulted loan, we may assume legal title or physical possession of the underlying collateral through foreclosure or the execution of a deed in lieu of foreclosure. The properties are initially measured at fair value. If the fair value of the property is lower than the carrying value of the loan, the difference is recognized as current expected credit loss reserves. In the case that there is a loss in excess of the cumulative reserve on the loan, the additional loss is recognized as a realized principal loss which is included as part of our provision for credit losses, net on our consolidated statements of operations. If the collateral value exceeds the carrying value of the loan, we then record some or all the unpaid, accrued interest and fees to the carrying value of the property. Real Property Held for Sale Real property is classified as held for sale in the period when we (1) commit to a plan and have the authority to sell the asset in its current condition, (2) have initiated an active marketing plan to sell the asset at a price that is reflective of its current fair value and (3) the sale of the asset is both probable and expected to qualify for full sales recognition within a period of 12 months. Real property classified as held for sale is held at the lower of cost or fair value at the time of acquisition and is evaluated for subsequent decreases in fair value on a quarterly basis. Any subsequent decreases in value are recorded as impairment in real property in our consolidated statements of operations. Depreciation is not recorded on assets classified as held for sale and operating and holding expenditures are charged to expense when incurred. Based on a change in circumstances, we may have a change to a plan of sale and decide not to sell real property previously classified as held for sale, in which case we would reclassify as held for use. Upon reclassification to held for use, the real property is measured at the lower of (1) its carrying amount before the asset was classified as held for sale, adjusted for any depreciation or amortization expense that would have been recognized had the assets continued to be classified as held for use, or (2) the fair value at the date of the subsequent decision not to sell. Real Property Held for Use Properties that are classified as held for use are carried at cost less accumulated depreciation. We evaluate our real property held for use for impairment at the time of acquisition and whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. If an impairment indicator exists, we evaluate the undiscounted net cash flows that are expected to be generated by the property, including any estimated proceeds from the eventual disposition of the property. Based upon the analysis, if the carrying value of a property exceeds its undiscounted net cash flows, an impairment loss is recognized for the excess of the carrying value of the property over the estimated fair value of the property. In evaluating and/or measuring impairment, we consider, among other things, current and estimated future cash flows associated with each property, market information for each sub-market, including, where applicable, competition levels, foreclosure levels, leasing trends, occupancy trends, lease or room rates, and the market prices of similar properties recently sold or currently being offered for sale and other quantitative and qualitative factors. Another key consideration in this assessment is our assumption about the highest and best use of the real estate investments and our intent and ability to hold them for a reasonable period that would allow for the recovery of their carrying values. Costs related to acquisition, development, construction and improvements are capitalized to the extent the investment in the real property held for use does not exceed the fair value less estimated costs to sell. Expenditures for repairs and maintenance are charged to expense when incurred. Once construction is complete and the property is held available for occupancy, real property held for use is depreciated using the straight-line method over the estimated useful life of the property. Depreciation expense is no longer recorded once the real property is classified as held for sale. |
Leases | Leases Our office space in Seattle, Washington is subject to an operating lease. The right of use assets and lease liabilities in our consolidated balance sheets relate to this lease. The lease agreement includes both lease components (e.g., fixed rent) and non-lease components (e.g., common-area maintenance). We account for the lease and non-lease components as a single component. Right of use assets represent our right to use an underlying asset during the lease term and lease liabilities represent our obligation to make lease payments. Right of use assets and lease liabilities are recognized at the lease commencement date based on the present value of the total lease payments not yet paid, including lease incentives not yet received, with the right of use assets further adjusted for any prepaid or accrued lease payments, lease incentives received and/or initial direct costs incurred. Our lease arrangement also includes variable payments for costs such as common-area maintenance, utilities, taxes or other operating costs, which are based on a percentage of actual expenses incurred. These variable lease payments are excluded from the measurement of the right of use assets and lease liabilities. When our lease includes an option to extend the lease term, we consider several factors in determining if a renewal option is reasonably certain of being exercised at lease commencement, including, but not limited to, contract-based, asset-based and entity-based factors. We reassess the term of the existing lease if there is a significant event or change in circumstances within our control that affects whether we are reasonably certain to exercise the option to extend the lease. Examples of such events or changes include construction of significant leasehold improvements or other modifications or customizations to the underlying asset, relevant business decisions or subleases. As our lease did not provide an implicit rate, we used our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. We recognize lease expense for our operating lease on a straight-line basis over the lease term. Variable lease payments are generally recognized when incurred. These expenses are included in general and administrative expenses in the consolidated statements of operations. |
Goodwill | Goodwill Goodwill represents the excess of the cost of an acquired business over the fair value of the assets acquired at the date of acquisition and is not amortized. Goodwill is assessed for impairment annually in the fourth quarter or more frequently if events occur or circumstances change that indicate an impairment may exist. Our assessment begins with an evaluation of qualitative factors, including macroeconomic conditions, industry and market considerations, current and projected financial performance, changes in strategy and market capitalization to determine whether it is more likely than not that the fair value of our single reporting unit exceeds the carrying value. A high degree of judgment is required in evaluating the qualitative factors. If we conclude that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, a quantitative test is then performed. The quantitative test consists of comparing the estimated fair value of the reporting unit to its carrying amount, including goodwill, using income or market approaches. If the estimated fair value of the reporting unit is less than the carrying value including goodwill, an impairment write-down of goodwill would be required for the excess of carrying value over the estimated fair value. When market comparables or observable market values are not meaningful or not available, we estimate the fair value of a reporting unit using only the income approach. Estimating the fair value of our reporting unit requires the use of inputs and assumptions for which there is inherent uncertainty. |
Other Assets | Other Assets Other assets primarily consist of deferred financing costs related to our revolving credit facility, fixed assets, prepaid insurance and other operating receivables. |
Fixed Assets | Fixed Assets Fixed assets, which are included in other assets in the accompanying consolidated balance sheets are stated at cost, less accumulated depreciation. Repairs and maintenance to these assets are charged to expense as incurred; major improvements enhancing the function and/or useful life are capitalized. When items are sold or retired, the related cost and accumulated depreciation are removed from the accounts and any gains or losses arising from such transactions are recognized. Depreciation and amortization are recorded on the straight-line basis over the estimated useful life of the assets. For computer equipment, office equipment, furniture and fixtures the useful lives range from three to seven years . For leasehold improvements, we amortize over the shorter of expected useful life or lease term. |
Deferred Financing Costs | Deferred Financing Costs Deferred financing costs that are included in other assets represent direct costs associated with the execution of the revolving credit facility. Such costs are included in other assets because the revolving credit facility has no principal outstanding as of December 31, 2022 and there is no recognized debt liability. These costs are amortized on the straight-line basis over the initial term of our revolving credit facility. |
Intangible Assets | Intangible Assets We record intangible assets at fair value at the acquisition date and amortize their value into expense over the expected useful life. All of our intangible assets relate to the value of customer relationships. As of December 31, 2022 , our intangible assets have been fully amortized. |
Debt, Policy | Senior Unsecured Notes Senior unsecured notes are recorded at the face amount of the notes net of unamortized issuance costs. Debt Issuance Costs Debt issuance costs represent direct costs associated with the issuance of a debt instrument that are deferred and amortized over the initial term of our debt instruments. Debt issuance costs are reported in the consolidated balance sheets as a direct deduction from the face amount of the debt issued. Costs that do not qualify as debt issuance costs are expensed as incurred. |
Interest Income | Interest Income Interest income on mortgage notes receivable is accrued based on contractual rates applied to the principal balance, unless there is a minimum interest provision in the mortgage note. Certain construction loans provide for minimum interest provisions, to which the contractual rate applies, which are typically between 50 % and 70 % of the face amount of the note until the actual outstanding principal exceeds the minimum threshold. Our loans originated since the second quarter of 2021 typically do not provide for minimum interest provisions. Mortgage notes receivable can be placed in contractual default status for any of the following reasons: (1) interest receivable is 60 days past due, (2) the loan was not repaid at the maturity date (3) there is a breach of terms in the loan documents or (4) the value of the collateral is less than the loan amount. The accrual of interest income is suspended when a loan is in contractual default unless the interest is paid in cash or collectability of all amounts due is reasonably assured. In addition, we may place a loan on non-accrual status when the loan is either deemed collateral dependent or high risk. The following criteria are used to determine if a loan is deemed high risk: (1) total outstanding interest and fee receivables are greater than 15% of the total commitment and outstanding face rate interest receivable if 60 days past due, (2) there is a significant decline in the value of the collateral due to entitlement, engineering or project changes, (3) introduction of significant uncertainty due to the project or collateral type, (4) significant decline in value of collateral due to market conditions, (5) significant damage or loss to the collateral, (6) adverse claim against the property or borrower and (7) unfunded construction cost overruns. Interest previously accrued may be reversed at that time, and such reversal is offset against interest income. The accrual of interest income resumes only when the loans are no longer deemed collateral dependent or high risk, with collectability being reasonably assured. |
Fee Income | Fee Income We charge loan origination and loan servicing fees in conjunction with origination. Amendment fees are charged when loan terms are modified, such as increases in interest reserves and construction holdbacks in line with our underwriting criteria or upon modification of a loan for the transition from horizontal development to vertical construction. We defer and amortize loan origination, loan servicing and amendment fees over the contractual terms of the loans. Extension fees are charged when we agree to extend the maturity dates of loans and we charge fees on past due receivables. Extension and late fees are recognized when billed to the borrower. We charge inspection fees, which we use to hire independent inspectors to report on the status of construction projects. These fees are earned and recognized upon each construction draw request. |
Interest Expense | Interest Expense Interest expense on debt obligations is accrued based on the note rate applied to the face amount of the debt outstanding. Amortization of debt issuance costs and deferred financing costs over the initial term of the debt instruments is reported as interest expense in the consolidated statements of operations. |
Share-Based Payments | Stock‑Based Compensation We measure compensation expense for all share-based awards at fair value on the date of grant and recognize compensation expense over the service period on a straight-line basis for awards expected to vest, which is generally three years for employees and one year for directors. Awards made to our employees and directors, typically consist of restricted stock units (“RSUs”). Employee stock-based compensation expense is included in compensation and employee benefits and director stock-based compensation expense is included in general and administrative in the consolidated statement of operations. For awards with only a service vesting condition, the fair value of the award is based on the grant date closing price of our common stock less the present value of expected dividends over the requisite service period, as the awards are not entitled to dividends. For these awards, we recognize stock-based compensation expense on a straight-line basis over the requisite service period for the entire award, subject to periodic adjustments to ensure that the cumulative amount of expense recognized through the end of any reporting period is at least equal to the portion of the grant date fair value of the award that has vested through that date, and we account for forfeitures prospectively as they occur. For awards that contain both service vesting and market conditions, referred to as performance restricted stock units (“pRSUs”), we use a Monte Carlo simulation model to calculate the grant date fair value. For these market-condition awards, regardless of the outcome of the market condition, we recognize stock-based compensation expense on a straight-line basis over the longest of explicit and derived service periods, and we account for forfeitures prospectively as they occur. If there are any modifications or cancellations of the underlying unvested share-based awards, we may be required to accelerate or increase any remaining unrecognized or previously recorded stock-based compensation expense. |
Income Taxes | Income Taxes We have elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, for U.S. federal income tax purposes (the “Code”). As a REIT, we generally are not subject to U.S. federal income taxes on net income we distribute to our stockholders. We intend to make timely distributions sufficient to satisfy the annual distribution requirements. If we fail to qualify as a REIT in any taxable year, we will be subject to U.S. federal income tax on our taxable income at regular corporate tax rates. Even if we qualify for taxation as a REIT, we may be subject to certain state and local taxes on our income and property and U.S. federal income and excise taxes on our undistributed income. Our TRSs are subject to U.S. federal income taxes. |
Earnings per Share | Earnings per Share (“EPS”) Basic EPS is calculated by dividing the net (loss) income attributable to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Diluted EPS is calculated by dividing the net (loss) income attributable to common stockholders by the weighted average number of shares of common stock outstanding determined for the basic EPS computation plus the effect of any dilutive securities. We include unvested shares of restricted stock in the computation of diluted EPS by using the treasury stock method. We include unvested performance units as contingently issuable shares in the computation of diluted EPS once the market criteria are met, assuming that the end of the reporting period is the end of the contingency period. Any anti-dilutive securities are excluded from the diluted EPS calculation. |
Recent Accounting Pronouncements Not Yet Adopted | Recently Issued Accounting Pronouncements Not Yet Adopted In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, which eliminates the accounting guidance for troubled debt restructurings (“TDR”) for creditors that have adopted the CECL standard and requires enhanced disclosures for loan modifications made to borrowers experiencing financial difficulty in the form of interest rate reductions, principal forgiveness, other-than-insignificant payment delays, or term extensions. In addition, the new guidance requires presentation in the vintage disclosures of current-period gross write-offs by year of origination. The guidance is effective for the Company in the first quarter of 2023. Entities are able to early adopt the guidance and have the ability to early adopt the TDR enhancements separately from the vintage disclosures. We have not yet adopted this ASU. While the guidance will result in expanded disclosures, we do not believe the adoption of this guidance will have a material impact on our financial position, results of operation or cash flows. |
Mortgage Notes Receivable (Tabl
Mortgage Notes Receivable (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Schedule of mortgage notes receivable | The following table reconciles outstanding mortgage loan commitments to the outstanding balance of mortgage notes receivable as of December 31, 2022 and 2021: (dollars in thousands) December 31, 2022 December 31, 2021 Total loan commitments $ 1,417,325 $ 1,489,055 Less: Construction holdbacks (1) 452,690 524,462 Interest reserves 33,633 39,880 Total principal outstanding for our mortgage notes receivable 931,002 924,713 Less: Allowance for credit losses (2) 41,492 10,394 Deferred origination and amendment fees 7,560 12,969 Mortgage notes receivable, net $ 881,950 $ 901,350 (1) As of December 31, 2022 and 2021 this amount includes $ 22.8 and $ 17.3 million, respectively, of construction holdbacks for defaulted loans that we are no longer required to pay. These amounts are included in the loan commitment totals. (2) As of December 31, 2022 and 2021, $ 1.5 and $ 0.9 million, respectively, of the CECL allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our consolidated balance sheet. When a loan is deemed collateral dependent or high risk, it is placed on |
Schedule of carrying value of loans in contractual default status by collateral type and the LTV | The following tables show the carrying value of loans in contractual default status by collateral type and the LTV of the loans in contractual default at the dates indicated: December 31, 2022 (dollars in thousands) Number of Loans Carrying Value % of Portfolio Collateral Type Residential lots 8 $ 71,306 28.5 % Condos 3 42,237 16.9 Hotel 2 28,919 11.5 Entitled Land 2 22,447 9.0 Townhomes 5 21,175 8.5 Single Family Housing 11 20,335 8.1 Mixed Use 4 14,795 5.9 Unentitled Land 1 10,496 4.2 Apartments 2 6,947 2.8 Offices 1 6,288 2.5 Retail 1 5,443 2.2 Total 40 $ 250,388 100.0 % December 31, 2022 (dollars in thousands) Carrying Value % of Portfolio LTV (1) 0 - 40% $ 3,969 1.6 % 41 - 60% 91,201 36.4 61 - 80% 139,537 55.7 Above 80% 15,681 6.3 Total $ 250,388 100.0 % (1) Represents current LTV as of origination or latest amendment. At December 31, 2022, the weighted average LTV for loans in contractual default using the latest appraisal was 124.8 % . The weighted average LTV of our loans in contractual default net of our allowance for credit losses was approximately 84.9 %. December 31, 2021 (dollars in thousands) Number of Loans Carrying Value % of Portfolio Collateral Type Condos 4 $ 47,741 27.4 % Senior Housing 1 25,337 14.6 Residential lots 3 19,541 11.2 Townhomes 6 18,870 10.8 Entitled Land 1 17,335 10.0 Mixed Use 4 15,858 9.1 Hotel 1 14,583 8.4 Unentitled Land 2 5,403 3.1 Apartments 2 5,341 3.1 Single Family Housing 7 3,973 2.3 Total 31 $ 173,984 100.0 % December 31, 2021 (dollars in thousands) Carrying Value % of Portfolio LTV (1) 0 - 40% $ 22,737 13.1 % 41 - 60% 26,902 15.5 61 - 80% 110,548 63.5 Above 80% 13,797 7.9 Total $ 173,984 100.0 % (1) Represents LTV as of origination or latest amendment. |
Schedule of activity in the CECL Allowance | The following tables summarize the activity in the CECL allowance during the years ended December 31, 2022 and 2021: CECL Allowance (dollars in thousands) Funded Unfunded (2) Total CECL allowance as of December 31, 2020 $ 10,590 $ — $ 10,590 Provision for credit losses, net 5,275 904 6,179 Charge-offs (1) ( 5,471 ) — ( 5,471 ) CECL allowance as of December 31, 2021 10,394 904 11,298 Provision for credit losses, net 37,696 570 38,266 Charge-offs (1) ( 6,598 ) — ( 6,598 ) CECL allowance as of December 31, 2022 $ 41,492 $ 1,474 $ 42,966 (1) Charge-offs result from either loan repayments where the proceeds are less than the principal outstanding or transfers to investment in real property at the time that we take ownership of the property where the fair values of the underlying collateral are less than the principal outstanding. (2) CECL allowance related to unfunded commitments is presented as a liability under accounts payable and accrued liabilities in our consolidated balance sheet. As of December 31, 2022, the funded and unfunded CECL allowance aggregated $ 43.0 million, which represents an increase of $ 38.3 million for the year ended December 31, 2022 . This increased allowance reflects increased loan specific allowances for certain high risk and collateral dependent loans where the fair value of the underlying collateral was less than the amortized cost of the loan, as well as increased uncertainty in the macroeconomic outlook, including weakening credit indicators, inflationary pressures, rising interest rates and market volatility. |
Schedule of composition of loan portfolio | The following tables allocate the carrying value of our loan portfolio based on our internal credit quality indicators in assessing estimated credit losses and vintage of origination at the dates indicated: December 31, 2022 Year Originated (1) (dollars in thousands) Carrying Value % of Portfolio 2022 2021 2020 2019 Prior Construction Type Vertical Construction $ 552,468 59.8 % $ 352,355 $ 128,130 $ 33,895 $ 1,928 $ 36,160 Horizontal Development 221,078 24.1 144,082 68,201 8,795 — — Investment 46,536 5.0 46,536 — — — — Rehabilitation 39,422 4.3 12,936 15,009 11,477 — — Land Entitlement 26,132 2.8 4,146 21,986 — — — Bridge 22,611 2.4 19,450 937 — 2,224 — Acquisition 15,195 1.6 13,454 1,741 — — — Total 923,442 100.0 % $ 592,959 $ 236,004 $ 54,167 $ 4,152 $ 36,160 CECL allowance (2) ( 41,492 ) Carrying value, net $ 881,950 (1) Represents the year of either origination or amendment where the loan incurred a full re-underwriting in connection with the amendment . (2) Includes $ 35.0 million in loan specific allowances for loans deemed collateral dependent based on the excess amortized cost over the fair value of the underlying collateral. In addition, $ 1.5 million of the CECL allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our consolidated balance sheet. December 31, 2022 Year Originated (1) (dollars in thousands) Carrying Value % of Portfolio 2022 2021 2020 2019 Prior Collateral Type Apartments $ 191,708 20.8 % $ 134,816 $ 49,944 $ 5,020 $ 1,928 $ — Single Family Housing 133,702 14.5 124,218 9,245 239 — — Townhomes 106,888 11.6 81,393 24,701 794 — — Residential Lots 104,100 11.3 56,675 38,630 8,795 — — Entitled Land 76,251 8.3 54,265 21,986 — — — Condos 71,975 7.8 29,738 2,515 3,562 — 36,160 Commercial 58,515 6.3 13,838 44,677 — — — Mixed Use 50,127 5.4 6,209 30,217 11,477 2,224 — Hotel 30,221 3.3 14,116 — 16,105 — — Offices 18,467 2.0 12,179 — 6,288 — — Unentitled Land 17,262 1.9 16,325 937 — — — Senior Housing 16,595 1.8 16,595 — — — — Duplex 13,639 1.5 13,639 — — — — Commercial Other 11,411 1.2 — 11,411 — — — Retail 9,071 1.0 5,443 1,741 1,887 — — Quadplex 8,932 1.0 8,932 — — — — Commercial Lots 4,018 0.4 4,018 — — — — Triplex 560 0.1 560 — — — — Total 923,442 100.0 % $ 592,959 $ 236,004 $ 54,167 $ 4,152 $ 36,160 CECL allowance (2) ( 41,492 ) Carrying value, net $ 881,950 (1) Represents the year of either origination or amendment where the loan incurred a full re-underwriting in connection with the amendment. (2) Includes $ 35.0 million in loan specific allowances for loans deemed collateral dependent based on the excess amortized cost over the fair value of the underlying collateral. In addition, $ 1.5 million of the CECL allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our consolidated balance sheet. December 31, 2022 Year Originated (1) (dollars in thousands) Carrying Value % of Portfolio 2022 2021 2020 2019 Prior LTV (2) 0 - 40% $ 26,053 2.8 % $ 22,544 $ 3,509 $ — $ — $ — 41 - 45% 29,025 3.1 7,039 21,986 — — — 46 - 50% 42,267 4.6 22,524 13,455 6,288 — — 51 - 55% 144,649 15.7 76,978 58,876 8,795 — — 56 - 60% 107,098 11.6 98,691 8,407 — — — 61 - 65% 456,743 49.5 284,722 112,569 21,364 1,928 36,160 66 - 70% 93,104 10.1 71,638 16,561 2,681 2,224 — 71 - 75% 4,280 0.5 4,280 — — — — 76- 80% 2,540 0.3 2,540 — — — — Above 80% 17,683 1.9 2,003 641 15,039 — — Total 923,442 100.0 % $ 592,959 $ 236,004 $ 54,167 $ 4,152 $ 36,160 CECL allowance (3) ( 41,492 ) Carrying value, net $ 881,950 (1) Represents the year of either origination or amendment where the loan incurred a full re-underwriting in connection with the amendment. (2) Represents LTV as of origination or latest amendment. LTVs above 65 % generally represent loans in contractual default status where we have agreed to extend funds to the borrower above 65 % in order to facilitate successful completion of the construction and return of capital. (3) Includes $ 35.0 million in loan specific allowances for loans deemed collateral dependent based on the excess amortized cost over the fair value of the underlying collateral. In addition, $ 1.5 million of the CECL allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our consolidated balance sheet. December 31, 2021 Year Originated (1) (dollars in thousands) Carrying Value % of Portfolio 2021 2020 2019 2018 2017 Prior Construction Type Vertical Construction $ 478,475 52.5 % $ 234,861 $ 191,896 $ 1,177 $ 2,491 $ 47,789 $ 261 Horizontal Development 196,543 21.5 169,041 27,502 — — — — Acquisition 96,937 10.6 96,937 — — — — — Investment 65,703 7.2 42,509 2,101 — 3,608 17,485 — Rehabilitation 27,023 3.0 11,320 15,703 — — — — Land Entitlement 24,529 2.7 24,529 — — — — — Bridge 22,534 2.5 18,072 2,537 1,925 — — — Total 911,744 100.0 % $ 597,269 $ 239,739 $ 3,102 $ 6,099 $ 65,274 $ 261 CECL allowance (2) ( 10,394 ) Carrying value, net $ 901,350 (1) Represents the year of either origination or amendment where the loan incurred a full re-underwriting in connection with the amendment. (2) Includes $ 0.7 million in loan specific allowances for loans deemed collateral dependent based on the excess amortized cost over the fair value of the underlying collateral. In addition, $ 0.9 million of the CECL allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our consolidated balance sheet. December 31, 2021 Year Originated (1) (dollars in thousands) Carrying Value % of Portfolio 2021 2020 2019 2018 2017 Prior Collateral Type Residential Lots $ 111,644 12.2 % $ 85,219 $ 26,425 $ — $ — $ — $ — Apartments 107,765 11.8 38,232 68,356 1,177 — — — Townhomes 93,300 10.2 51,240 28,979 — 1,017 11,803 261 Mixed Use 85,929 9.5 53,530 30,474 1,925 — — — Single Family Housing 87,902 9.6 84,703 3,049 — — 150 — Condos 64,492 7.1 8,805 18,227 — 1,474 35,986 — Commercial 61,592 6.8 61,592 — — — — — Senior Housing 61,236 6.7 35,899 25,337 — — — — Storage 56,481 6.2 56,481 — — — — — Unentitled Land 46,019 5.0 42,411 — — 3,608 — — Entitled Land 45,098 4.9 27,763 — — — 17,335 — Hotel 31,665 3.5 4,886 26,779 — — — — Offices 15,348 1.7 8,280 7,068 — — — — Commercial Lots 10,227 1.1 6,670 3,557 — — — — Quadplex 9,769 1.1 9,769 — — — — — Commercial Other 9,080 1.0 9,080 — — — — — Retail 7,873 0.9 6,385 1,488 — — — — Duplex 6,324 0.7 6,324 — — — — — Total 911,744 100.0 % $ 597,269 $ 239,739 $ 3,102 $ 6,099 $ 65,274 $ 261 CECL allowance (2) ( 10,394 ) Carrying value, net $ 901,350 (1) Represents the year of either origination or amendment where the loan incurred a full re-underwriting in connection with the amendment. (2) Includes $ 0.7 million in loan specific allowances for loans deemed collateral dependent based on the excess amortized cost over the fair value of the underlying collateral. In addition, $ 0.9 million of the CECL allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our consolidated balance sheet. December 31, 2021 Year Originated (1) (dollars in thousands) Carrying Value % of Portfolio 2021 2020 2019 2018 2017 Prior LTV (2) 0 - 40% $ 53,907 5.9 % $ 32,634 $ — $ — $ 3,608 $ 17,665 $ — 41 - 45% 48,431 5.3 44,380 4,051 — — — — 46 - 50% 63,690 7.0 41,356 21,317 — 1,017 — — 51 - 55% 92,238 10.1 74,978 17,260 — — — — 56 - 60% 79,039 8.7 27,115 40,190 — — 11,473 261 61 - 65% 559,997 61.4 372,645 146,640 3,102 1,474 36,136 — 66 - 70% 645 0.1 645 — — — — — 71 - 80% — 0.0 — — — — — — Above 80% 13,797 1.5 3,516 10,281 — — — — Total 911,744 100.0 % $ 597,269 $ 239,739 $ 3,102 $ 6,099 $ 65,274 $ 261 CECL allowance (3) ( 10,394 ) Carrying value, net $ 901,350 (1) Represents the year of either origination or amendment where the loan incurred a full re-underwriting in connection with the amendment. (2) Represents LTV as of origination or latest amendment. LTVs above 65 % generally represent loans in contractual default status where we have agreed to extend funds to the borrower above 65 % in order to ensure successful completion of the construction and return of capital. (3) Includes $ 0.7 million in loan specific allowances for loans deemed collateral dependent based on the excess amortized cost over the fair value of the underlying collateral. In addition, $ 0.9 million of the CECL allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our consolidated balance sheet. |
Schedule of carrying value of collateral dependent loans | The following tables allocate the carrying value of collateral dependent loans in our loan portfolio to the collateral type at the dates indicated: December 31, 2022 (dollars in thousands) Carrying Value CECL Allowance (1) Carrying Value, net Collateral Type Residential Lots $ 70,664 $ ( 11,519 ) $ 59,145 Condos 42,237 ( 5,892 ) 36,345 Land 21,986 ( 108 ) 21,878 Townhomes 18,296 ( 1,706 ) 16,590 Single Family Housing 16,993 ( 950 ) 16,043 Hotel 16,106 ( 9,151 ) 6,955 Apartments 6,947 ( 978 ) 5,969 Offices 6,288 ( 5,042 ) 1,246 Mixed Use 3,318 ( 1,320 ) 1,998 Total $ 202,835 $ ( 36,666 ) $ 166,169 December 31, 2021 (dollars in thousands) Carrying Value CECL Allowance (1) Carrying Value, net Collateral Type Senior Housing $ 25,337 $ ( 1,103 ) $ 24,234 Entitled Land 17,335 ( 42 ) 17,293 Single Family Housing 1,730 ( 15 ) 1,715 Condos 1,109 ( 673 ) 436 Townhomes 261 ( 1 ) 260 Total $ 45,772 $ ( 1,834 ) $ 43,938 |
Investment in Real Property (Ta
Investment in Real Property (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Real Estate [Abstract] | |
Schedule of carrying value of owned real estate | The following tables provide information about the carrying value of our owned real property at the dates indicated: (dollars in thousands) December 31, 2022 December 31, 2021 Collateral Type Senior Housing $ 49,917 $ — Offices 15,414 19,388 Single Family Housing 8,538 4,134 Townhomes 6,712 9,281 Apartments 5,024 — Residential Lots 2,293 3,012 Condos — 28,441 Retail — 3,811 Total $ 87,898 $ 68,067 December 31, 2022 December 31, 2021 (dollars in thousands) Number of Properties Carrying Value Number of Properties Carrying Value Collateral Type Held for sale 7 $ 24,516 5 $ 52,531 Held for use 4 63,382 4 15,536 Total 11 $ 87,898 9 $ 68,067 |
Schedule of investment in real property, held for sale and held for use | For the years ended December 31, 2022, 2021 and 2020, we recorded the operating revenue, expenses, fixed asset depreciation and impairment in our consolidated statement of operations as shown below for investment in real property, held for sale and held for use, respectively: Held for Sale (dollars in thousands) December 31, 2022 December 31, 2021 December 31, 2020 Revenue from operations $ 276 $ — $ — Gain on sale 984 Less: Operating expenses 1,990 101 168 Depreciation (1) 125 — — Impairment 6,111 — — Net loss from investment in real property, held for sale $ ( 6,966 ) $ ( 101 ) $ ( 168 ) (1) Depreciation incurred for a real property before it was reclassified to held for sale. Held for Use (dollars in thousands) December 31, 2022 December 31, 2021 December 31, 2020 Revenue from operations $ 2,523 $ — $ — Less: Operating expenses 3,697 7 — Depreciation 553 — — Impairment 1,485 — — Net loss from investment in real property, held for use $ ( 3,212 ) $ ( 7 ) $ — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value of assets and liabilities | The following tables present estimated fair values of our financial instruments, as of the date indicated, whether or not recognized or recorded in the consolidated balance sheets at the periods indicated: December 31, 2022 Fair Value Measurements Using (dollars in thousands) Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 54,964 $ 54,964 $ 54,964 $ — $ — Mortgage notes receivable, net 881,950 865,304 — — 865,304 Interest and fees receivable, net 14,775 14,775 — 14,775 — Financial Liabilities Senior unsecured notes, net 97,789 99,990 99,990 — — Private placement warrant liability 25 25 — 25 — December 31, 2021 Fair Value Measurements Using (dollars in thousands) Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 132,889 $ 132,889 $ 132,889 $ — $ — Mortgage notes receivable, net 901,350 901,350 — — 901,350 Interest and fees receivable, net 17,526 17,526 — 17,526 — Financial Liabilities Senior unsecured notes, net 97,223 100,000 100,000 — — Private placement warrant liability 1,838 1,838 — 1,838 — |
Schedule of valuation methodologies and inputs used for assets that are measured at fair value | The following table sets forth assets measured and reported at fair value on a nonrecurring basis as of December 31, 2022 and 2021. All of these values are categorized as Level 3. The table also contains information about valuation methodologies and inputs for: Carrying Value Fair Value (dollars in thousands) December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Valuation Technique Unobservable Inputs Range of Inputs Investment in real property held for sale (1) $ 14,628 $ — $ 15,075 $ — Collateral valuations Discount to appraised value based on comparable market prices, broker opinion of value, discounted cash flows or capitalization rate applied to estimate net operating income 0 - 10 % Investment in real property held for use (1) $ 25,167 $ — $ 33,379 $ — Collateral valuations Discount to appraised value based on comparable market prices, broker opinion of value, discounted cash flows or capitalization rate applied to estimate net operating income 0 - 10 % Collateral dependent loans, net of allowance for credit losses (1) 81,470 436 87,622 835 Collateral valuations Discount to appraised value based on comparable market prices or broker opinion of value, discounted cash flows or capitalization rate applied to estimate net operating income 0 - 10 % Total $ 121,265 $ 436 $ 136,076 $ 835 (1) Previously reported amounts included all real properties and collateral dependent loans regardless of whether an adjustment was required to mark to fair value in the reporting period. The current disclosure represents only those loans and properties for which an adjustment was required to report at fair value on a nonrecurring basis during the reporting periods. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying amount of goodwill | The following table sets forth the changes in the carrying amount of goodwill: (dollars in thousands) Goodwill Goodwill as of December 31, 2020 $ 136,965 Goodwill as of December 31, 2021 136,965 Less: Impairment 136,965 Goodwill as of December 31, 2022 $ — |
Schedule of change in net book value of intangible assets | The following table summarizes the balances of intangible assets as of December 31, 2022 and 2021: (dollars in thousands) December 31, 2022 December 31, 2021 Asset Type Customer relationships $ 1,000 $ 1,000 Less: Accumulated amortization 1,000 718 Intangible assets, net $ — $ 282 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Summary of accounts payable and accrued liabilities | The follo wing table presents a summary of accounts payable and accrued liabilities as of December 31, 2022 and 2021: (dollars in thousands) December 31, 2022 December 31, 2021 Accounts payable and accrued liabilities Borrower deposits $ 5,519 $ 925 Accounts payable and other liabilities 4,223 $ 4,315 Accrued salaries, bonus and commissions. 2,272 $ 2,034 Allowance for credit losses on unfunded commitments 1,475 906 Total $ 13,489 $ 8,180 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Values of The Company's Debt | The following table presents the carrying values of our senior unsecured notes as of the periods indicated: (dollars in thousands) December 31, 2022 December 31, 2021 Principal $ 100,000 $ 100,000 Debt issuance costs ( 2,861 ) ( 2,855 ) Amortization of debt issuance costs 650 78 Total notes, net $ 97,789 $ 97,223 |
Schedule of Interest Expense Related to Senior Unsecured Notes and Revolving Credit Facility | The following table summarizes the components of interest expense related to our senior unsecured notes and revolving credit facility for the periods indicated: Year Ended December 31, 2022 December 31, 2021 (dollars in thousands) Amortization of Deferred Debt Issuance Costs Interest on Borrowings Undrawn Fees Amortization of Deferred Debt Issuance Costs Interest on Borrowings Undrawn Fees 5.0% senior unsecured notes $ 572 $ 4,986 $ — $ 78 $ 694 $ — Revolving credit facility 1,510 151 1,419 1,255 107 1,186 Total $ 2,082 $ 5,137 $ 1,419 $ 1,333 $ 801 $ 1,186 |
Stockholders' Equity and Earn_2
Stockholders' Equity and Earnings per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of basic and diluted earnings per common share | The table below presents the computation of basic and diluted net earnings per share of common stock for the periods presented: Year Ended (dollars in thousands, except share and per share data): December 31, 2022 December 31, 2021 Net (loss) income $ ( 116,391 ) $ 82,488 Basic weighted-average shares of common stock outstanding 132,841,196 132,579,289 Dilutive effect of share-based compensation – unvested restricted stock units (1) — 87,213 Diluted weighted-average shares of common stock outstanding 132,841,196 132,666,502 Basic earnings per common share $ ( 0.88 ) $ 0.62 Diluted earnings per common share $ ( 0.88 ) $ 0.62 (1) Amounts exclude all potential common and common equivalent shares for periods when there is a net loss from continuing operations. |
Schedule of stock equivalents excluded from diluted net income per share | For the periods presented, th e following common stock equivalents were excluded from the calculations of diluted earnings per share because their effect would have been anti-dilutive: Year Ended December 31, 2022 December 31, 2021 Weighted-average restricted stock units outstanding 27,091 199,709 Unexercised public warrants and private placement warrants 15,604,192 15,604,304 Total stock equivalents excluded 15,631,283 15,804,013 |
Equity Incentive Plan (Tables)
Equity Incentive Plan (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Assumptions Used in Estimating Fair Value of Derivative Liability | The weighted average fair value and assumptions used to value the pRSU awards granted with market-based performance conditions are as follows: Year Ended December 31, 2022 December 31, 2021 Performance share fair value $ 6.74 $ 8.20 Risk-free interest rate 1.74 % 0.27 % Expected volatility 30.48 % 25.71 % Expected life (in years) 2.85 2.77 Expected dividend yield 9.82 % 8.13 % |
Summary of Activity Related to Restricted Stock | The following tables summarize the activity related to RSUs and pRSUs during 2022: Shares Weighted Average Grant Date Fair Market Value Unvested RSUs outstanding as of December 31, 2020 434,143 Granted 295,063 $ 10.08 Vested ( 231,053 ) $ 10.61 Forfeited ( 13,837 ) $ 10.58 Unvested RSUs outstanding as of December 31, 2021 484,316 Granted 750,038 $ 6.02 Vested ( 285,853 ) $ 10.01 Forfeited ( 200,589 ) $ 7.31 Unvested RSUs outstanding as of December 31, 2022 747,912 Shares Weighted Average Grant Date Fair Market Value Unvested pRSUs outstanding as of December 31, 2020 — Granted 113,958 $ 8.20 Unvested pRSUs outstanding as of December 31, 2021 113,958 Granted 276,679 $ 6.74 Forfeited ( 182,976 ) $ 7.07 Unvested pRSUs outstanding as of December 31, 2022 207,661 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of contractual obligations and commercial commitments | The following table illustrates our contractual obligations and commercial commitments by due date as of December 31, 2022: (dollars in thousands) Total Less than 1 year 1-3 years 3-5 years More than 5 years Construction holdbacks (1) $ 429,920 $ 261,243 $ 168,677 $ — $ — Operating lease obligations (2) 9,930 887 2,018 2,140 4,885 Total $ 439,850 $ 262,130 $ 170,695 $ 2,140 $ 4,885 (1) The funding timing and amounts of construction holdbacks are uncertain as these commitments relate to loans for construction costs and depend on the progress and performance of the underlying projects. In addition, $ 22.8 million of holdbacks are excluded from this table as they represent capital expenditures required to complete construction for defaulted loans that we are no longer required to pay. (2) The total operating lease obligation includes $ 2.4 million of imputed interest. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional information (Details) | 12 Months Ended | |||
Dec. 31, 2022 USD ($) Property Segment | Dec. 31, 2021 USD ($) Property | Dec. 31, 2020 USD ($) | Jan. 01, 2020 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Additional paid in capital | $ 1,215,229,000 | $ 1,216,957,000 | ||
Number of Reportable Segments | Segment | 1 | |||
Threshold Sweep Account Balance | $ 750,000 | |||
Cash and cash equivalents insured maximum per account | 250,000 | 250,000 | ||
Restricted cash | 0 | 0 | ||
Accumulated deficit | (287,307,000) | (68,621,000) | ||
Provision for credit losses, net | 38,266,000 | 6,179,000 | $ 6,722,000 | |
Net income (Loss) | $ (116,391,000) | $ 82,488,000 | 90,231,000 | |
Number of properties | Property | 11 | 9 | ||
Real Estate Project Value | $ 87,900,000 | $ 68,100,000 | ||
Goodwill Impairment | 136,965,000 | 0 | 0 | |
Provision for income taxes | $ 0 | $ 0 | $ 0 | |
Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accumulated deficit | $ 2,000,000 | |||
Employees | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Vesting period | 3 years | |||
Directors | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Vesting period | 1 year | |||
Maximum [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Estimated Useful Lives of fixed assets | 7 years | |||
Contractual Rate | 70% | |||
Minimum [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Estimated Useful Lives of fixed assets | 3 years | |||
Contractual Rate | 50% |
Business Combination - Schedule
Business Combination - Schedule of Preliminary Fair Values of Assets Acquired and Liabilities Assumed by BRELF II (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Liabilities assumed: | |||
Goodwill | $ 0 | $ 136,965 | $ 136,965 |
Business Combination - Addition
Business Combination - Additional information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Customer Relationships [Member] | |
Business Acquisition [Line Items] | |
Goodwill, period increase decrease | $ 5 |
Mortgage Notes Receivable - Add
Mortgage Notes Receivable - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of maximum loan to value ratio | 65% | |
Percentage of maximum of amount of a single loan | 10% | |
Percentage of maximum amount of loans to single borrower | 15% | |
Term of mortgage notes receivable | 22 months | |
Interest rate (as a percent) | 10.20% | |
Monthly interest rate payment term | 10 days | |
Principal outstanding on non accrual status | $ 217.2 | $ 101.9 |
Contractual loans | 250.4 | $ 174 |
Funded and unfunded allowance aggregated | 43 | |
Increase Decrease in founded unfounded allowance aggregate | $ 38.3 | |
Maximum [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Percentage of maximum loan to value ratio | 65% | |
Interest rate (as a percent) | 0.14% | |
Minimum [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Interest rate (as a percent) | 0.01% |
Mortgage Notes Receivable - Inf
Mortgage Notes Receivable - Information pertaining to mortgage notes receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Construction holdbacks | $ 22,800 | |||||
Total principal outstanding for our mortgage notes receivable held for investment | 923,442 | [1] | $ 911,744 | [2] | ||
Adoption of ASU 2016-13 | 41,492 | [1],[3],[4] | 10,394 | [2],[5],[6] | ||
Mortgage notes receivable held for investment, net | 881,950 | 901,350 | ||||
Mortgage notes receivables | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loan commitments | 1,417,325 | 1,489,055 | ||||
Construction holdbacks | [7] | 452,690 | 524,462 | |||
Interest reserves | 33,633 | 39,880 | ||||
Total principal outstanding for our mortgage notes receivable held for investment | 931,002 | 924,713 | ||||
Adoption of ASU 2016-13 | [8] | 41,492 | 10,394 | |||
Deferred origination and amendment fees | 7,560 | 12,969 | ||||
Mortgage notes receivable held for investment, net | 881,950 | 901,350 | ||||
Broadmark Private REIT, LLC | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Construction holdbacks | 17,300 | |||||
Unfunded Loan Commitment [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Adoption of ASU 2016-13 | [9] | 1,474 | 904 | $ 0 | ||
Unfunded Loan Commitment [Member] | Accounts payable and accrued liabilities | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Adoption of ASU 2016-13 | 1,500 | 900 | ||||
Funded And Unfunded Loan Commitment [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Adoption of ASU 2016-13 | $ 42,966 | $ 11,298 | $ 10,590 | |||
[1] Represents LTV as of origination or latest amendment. LTVs above 65 % generally represent loans in contractual default status where we have agreed to extend funds to the borrower above 65 % in order to facilitate successful completion of the construction and return of capital. Represents LTV as of origination or latest amendment. LTVs above 65 % generally represent loans in contractual default status where we have agreed to extend funds to the borrower above 65 % in order to ensure successful completion of the construction and return of capital. Includes $ 35.0 million in loan specific allowances for loans deemed collateral dependent based on the excess amortized cost over the fair value of the underlying collateral. In addition, $ 1.5 million of the CECL allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our consolidated balance sheet. Represents the year of either origination or amendment where the loan incurred a full re-underwriting in connection with the amendment. Includes $ 0.7 million in loan specific allowances for loans deemed collateral dependent based on the excess amortized cost over the fair value of the underlying collateral. In addition, $ 0.9 million of the CECL allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our consolidated balance sheet. Includes $ 0.7 million in loan specific allowances for loans deemed collateral dependent based on the excess amortized cost over the fair value of the underlying collateral. In addition, $ 0.9 million of the CECL allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our consolidated balance sheet. As of December 31, 2022 and 2021 this amount includes $ 22.8 and $ 17.3 million, respectively, of construction holdbacks for defaulted loans that we are no longer required to pay. These amounts are included in the loan commitment totals. As of December 31, 2022 and 2021, $ 1.5 and $ 0.9 million, respectively, of the CECL allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our consolidated balance sheet. CECL allowance related to unfunded commitments is presented as a liability under accounts payable and accrued liabilities in our consolidated balance sheet. |
Mortgage Notes Receivable - Sch
Mortgage Notes Receivable - Schedule reconciles outstanding mortgage loan commitments to the outstanding balance of recevable (Parenthetical) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Construction Hold Backs | $ 22,800 | |||||
Financing Receivable, Allowance for Credit Loss | $ 41,492 | [1],[2],[3] | $ 10,394 | [4],[5],[6] | ||
Debt, Weighted Average Interest Rate | 0.04% | |||||
Unfunded Loan Commitment [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Financing Receivable, Allowance for Credit Loss | [7] | $ 1,474 | 904 | $ 0 | ||
LTV [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Debt, Weighted Average Interest Rate | 124.80% | |||||
Accounts payable and accrued liabilities | Unfunded Loan Commitment [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Financing Receivable, Allowance for Credit Loss | $ 1,500 | 900 | ||||
Broadmark Private Reit Llc [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Construction Hold Backs | $ 17,300 | |||||
[1] Includes $ 35.0 million in loan specific allowances for loans deemed collateral dependent based on the excess amortized cost over the fair value of the underlying collateral. In addition, $ 1.5 million of the CECL allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our consolidated balance sheet. Represents LTV as of origination or latest amendment. LTVs above 65 % generally represent loans in contractual default status where we have agreed to extend funds to the borrower above 65 % in order to facilitate successful completion of the construction and return of capital. Represents the year of either origination or amendment where the loan incurred a full re-underwriting in connection with the amendment. Includes $ 0.7 million in loan specific allowances for loans deemed collateral dependent based on the excess amortized cost over the fair value of the underlying collateral. In addition, $ 0.9 million of the CECL allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our consolidated balance sheet. Includes $ 0.7 million in loan specific allowances for loans deemed collateral dependent based on the excess amortized cost over the fair value of the underlying collateral. In addition, $ 0.9 million of the CECL allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our consolidated balance sheet. Represents LTV as of origination or latest amendment. LTVs above 65 % generally represent loans in contractual default status where we have agreed to extend funds to the borrower above 65 % in order to ensure successful completion of the construction and return of capital. CECL allowance related to unfunded commitments is presented as a liability under accounts payable and accrued liabilities in our consolidated balance sheet. |
Mortgage Notes Receivable - S_2
Mortgage Notes Receivable - Schedule of carrying value of loans in contractual default status by collateral type and the LTV (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 USD ($) Loan | Dec. 31, 2021 USD ($) Loan | |||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Carrying Value | $ 923,442 | [1] | $ 911,744 | [2] |
Percentage of portfolio | 100% | [1] | 100% | [2] |
Number of Loans | Loan | 11 | 9 | ||
Apartments | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Carrying Value | $ 191,708 | $ 107,765 | ||
Percentage of portfolio | 20.80% | 11.80% | ||
Residential Lots | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Carrying Value | $ 104,100 | $ 111,644 | ||
Percentage of portfolio | 11.30% | 12.20% | ||
Single Family Housing | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Carrying Value | $ 133,702 | $ 87,902 | ||
Percentage of portfolio | 14.50% | 9.60% | ||
Townhomes | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Carrying Value | $ 106,888 | $ 93,300 | ||
Percentage of portfolio | 11.60% | 10.20% | ||
Entitled Land | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Carrying Value | $ 76,251 | $ 45,098 | ||
Percentage of portfolio | 8.30% | 4.90% | ||
Condos | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Carrying Value | $ 71,975 | $ 64,492 | ||
Percentage of portfolio | 7.80% | 7.10% | ||
Mixed Use | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Carrying Value | $ 50,127 | $ 85,929 | ||
Percentage of portfolio | 5.40% | 9.50% | ||
Offices | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Carrying Value | $ 6,288 | |||
Senior Housing | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Carrying Value | $ 16,595 | $ 61,236 | ||
Percentage of portfolio | 1.80% | 6.70% | ||
Commercial other | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Carrying Value | $ 11,411 | $ 9,080 | ||
Percentage of portfolio | 1.20% | 1% | ||
Duplex | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Carrying Value | $ 13,639 | $ 6,324 | ||
Percentage of portfolio | 1.50% | 0.70% | ||
Retail | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Carrying Value | $ 9,071 | $ 7,873 | ||
Percentage of portfolio | 1% | 0.90% | ||
Quadplex | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Carrying Value | $ 8,932 | $ 9,769 | ||
Percentage of portfolio | 1% | 1.10% | ||
Commercial Lots | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Carrying Value | $ 4,018 | $ 10,227 | ||
Percentage of portfolio | 0.40% | 1.10% | ||
Triplex | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Carrying Value | $ 560 | |||
Percentage of portfolio | 0.10% | |||
0 - 40% | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Carrying Value | $ 26,053 | [1] | $ 53,907 | [2] |
Percentage of portfolio | 2.80% | [1] | 5.90% | [2] |
LTV [Member] | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Carrying Value | $ 250,388 | $ 173,984 | ||
Percentage of portfolio | 100% | 100% | ||
Number of Loans | Loan | 40 | 31 | ||
LTV [Member] | Apartments | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Carrying Value | $ 6,947 | $ 5,341 | ||
Percentage of portfolio | 2.80% | 3.10% | ||
Number of Loans | Loan | 2 | 2 | ||
LTV [Member] | Residential Lots | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Carrying Value | $ 71,306 | $ 19,541 | ||
Percentage of portfolio | 28.50% | 11.20% | ||
Number of Loans | Loan | 8 | 3 | ||
LTV [Member] | Single Family Housing | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Carrying Value | $ 20,335 | $ 3,973 | ||
Percentage of portfolio | 8.10% | 2.30% | ||
Number of Loans | Loan | 11 | 7 | ||
LTV [Member] | Townhomes | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Carrying Value | $ 21,175 | $ 18,870 | ||
Percentage of portfolio | 8.50% | 10.80% | ||
Number of Loans | Loan | 5 | 6 | ||
LTV [Member] | Entitled Land | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Carrying Value | $ 22,447 | $ 17,335 | ||
Percentage of portfolio | 9% | 10% | ||
Number of Loans | Loan | 2 | 1 | ||
LTV [Member] | Condos | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Carrying Value | $ 42,237 | $ 47,741 | ||
Percentage of portfolio | 16.90% | 27.40% | ||
Number of Loans | Loan | 3 | 4 | ||
LTV [Member] | Mixed Use | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Carrying Value | $ 14,795 | $ 15,858 | ||
Percentage of portfolio | 5.90% | 9.10% | ||
Number of Loans | Loan | 4 | 4 | ||
LTV [Member] | Hotel | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Carrying Value | $ 28,919 | $ 14,583 | ||
Percentage of portfolio | 11.50% | 8.40% | ||
Number of Loans | Loan | 2 | 1 | ||
LTV [Member] | Unentitled Land | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Carrying Value | $ 10,496 | $ 5,403 | ||
Percentage of portfolio | 4.20% | 3.10% | ||
Number of Loans | Loan | 1 | 2 | ||
LTV [Member] | Offices | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Carrying Value | $ 6,288 | |||
Percentage of portfolio | 2.50% | |||
Number of Loans | Loan | 1 | |||
LTV [Member] | Senior Housing | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Carrying Value | $ 25,337 | |||
Percentage of portfolio | 14.60% | |||
Number of Loans | Loan | 1 | |||
LTV [Member] | Retail | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Carrying Value | $ 5,443 | |||
Percentage of portfolio | 2.20% | |||
Number of Loans | Loan | 1 | |||
LTV [Member] | 0 - 40% | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Carrying Value | $ 3,969 | $ 22,737 | ||
Percentage of portfolio | 1.60% | 13.10% | ||
LTV [Member] | 41 - 60% | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Carrying Value | $ 91,201 | $ 26,902 | ||
Percentage of portfolio | 36.40% | 15.50% | ||
LTV [Member] | 61 - 80% | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Carrying Value | $ 139,537 | $ 110,548 | ||
Percentage of portfolio | 55.70% | 63.50% | ||
LTV [Member] | 81 - 100% | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Carrying Value | $ 15,681 | $ 13,797 | ||
Percentage of portfolio | 6.30% | 7.90% | ||
[1] Represents LTV as of origination or latest amendment. LTVs above 65 % generally represent loans in contractual default status where we have agreed to extend funds to the borrower above 65 % in order to facilitate successful completion of the construction and return of capital. Represents LTV as of origination or latest amendment. LTVs above 65 % generally represent loans in contractual default status where we have agreed to extend funds to the borrower above 65 % in order to ensure successful completion of the construction and return of capital. |
Mortgage Notes Receivable - All
Mortgage Notes Receivable - Allowance for loan loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for Credit Loss, Beginning Balance | [1],[2],[3] | $ 10,394 | |||
Adoption of ASU 2016-13 | 41,492 | [4],[5],[6] | $ 10,394 | [1],[2],[3] | |
Allowance for Credit Loss, Ending Balance | 41,492 | [4],[5],[6] | 10,394 | [1],[2],[3] | |
Unfunded Loan Commitment [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for Credit Loss, Beginning Balance | [7] | 904 | 0 | ||
Adoption of ASU 2016-13 | [7] | 1,474 | 904 | ||
Provision for credit losses, net | [7] | 570 | 904 | ||
Charge-offs | [7],[8] | 0 | 0 | ||
Allowance for Credit Loss, Ending Balance | [7] | 1,474 | 904 | ||
Funded And Unfunded Loan Commitment [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for Credit Loss, Beginning Balance | 11,298 | 10,590 | |||
Adoption of ASU 2016-13 | 42,966 | 11,298 | |||
Provision for credit losses, net | 38,266 | 6,179 | |||
Charge-offs | [8] | (6,598) | (5,471) | ||
Allowance for Credit Loss, Ending Balance | 42,966 | 11,298 | |||
Funded Loan Commitment [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for Credit Loss, Beginning Balance | 10,394 | 10,590 | |||
Adoption of ASU 2016-13 | 41,492 | 10,394 | |||
Provision for credit losses, net | 37,696 | 5,275 | |||
Charge-offs | [8] | (6,598) | (5,471) | ||
Allowance for Credit Loss, Ending Balance | $ 41,492 | $ 10,394 | |||
[1] Includes $ 0.7 million in loan specific allowances for loans deemed collateral dependent based on the excess amortized cost over the fair value of the underlying collateral. In addition, $ 0.9 million of the CECL allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our consolidated balance sheet. Includes $ 0.7 million in loan specific allowances for loans deemed collateral dependent based on the excess amortized cost over the fair value of the underlying collateral. In addition, $ 0.9 million of the CECL allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our consolidated balance sheet. Represents LTV as of origination or latest amendment. LTVs above 65 % generally represent loans in contractual default status where we have agreed to extend funds to the borrower above 65 % in order to ensure successful completion of the construction and return of capital. Includes $ 35.0 million in loan specific allowances for loans deemed collateral dependent based on the excess amortized cost over the fair value of the underlying collateral. In addition, $ 1.5 million of the CECL allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our consolidated balance sheet. Represents LTV as of origination or latest amendment. LTVs above 65 % generally represent loans in contractual default status where we have agreed to extend funds to the borrower above 65 % in order to facilitate successful completion of the construction and return of capital. Represents the year of either origination or amendment where the loan incurred a full re-underwriting in connection with the amendment. CECL allowance related to unfunded commitments is presented as a liability under accounts payable and accrued liabilities in our consolidated balance sheet. Charge-offs result from either loan repayments where the proceeds are less than the principal outstanding or transfers to investment in real property at the time that we take ownership of the property where the fair values of the underlying collateral are less than the principal outstanding. |
Mortgage Notes Receivable - Com
Mortgage Notes Receivable - Composition of loan portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Carrying Value | $ 923,442 | [1] | $ 911,744 | [2] | ||
CECL Allowance | (41,492) | [1],[3],[4] | (10,394) | [2],[5],[6] | ||
Carrying value, net | $ 881,950 | [1] | $ 901,350 | [2] | ||
Percentage of portfolio | 100% | [1] | 100% | [2] | ||
2022 | $ 592,959 | [1],[7],[8],[9] | $ 597,269 | [2],[10] | ||
2021 | 236,004 | [1],[7],[8],[9] | 239,739 | [2],[10] | ||
2020 | 54,167 | [1],[7],[8],[9] | 3,102 | [2],[10] | ||
2019 | 4,152 | [1],[7],[8],[9] | 6,099 | [2],[10] | ||
2018 | [2],[10] | 65,274 | ||||
Prior | $ 36,160 | [1],[4],[9] | $ 261 | [2],[10] | ||
LTV general percent indicating default status | 65 | 65 | ||||
Allowances on excess amortized cost over fair value | $ 700 | |||||
0 - 40% | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Carrying Value | $ 26,053 | [1] | $ 53,907 | [2] | ||
Percentage of portfolio | 2.80% | [1] | 5.90% | [2] | ||
2022 | $ 22,544 | [1],[8] | $ 32,634 | [2],[11] | ||
2021 | [1],[8] | 3,509 | ||||
2019 | [2],[11] | 3,608 | ||||
2018 | [2],[11] | 17,665 | ||||
Prior | [2],[11] | 0 | ||||
41 - 45% | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Carrying Value | $ 29,025 | [1] | $ 48,431 | [2] | ||
Percentage of portfolio | 3.10% | [1] | 5.30% | [2] | ||
2022 | $ 7,039 | [1],[8] | $ 44,380 | [2],[11] | ||
2021 | 21,986 | [1],[8] | 4,051 | [2],[11] | ||
2020 | [1],[8] | 0 | ||||
2019 | [2],[11] | 0 | ||||
46 - 50% | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Carrying Value | $ 42,267 | [1] | $ 63,690 | [2] | ||
Percentage of portfolio | 4.60% | [1] | 7% | [2] | ||
2022 | $ 22,524 | [1],[8] | $ 41,356 | [2],[11] | ||
2021 | 13,455 | [1],[8] | 21,317 | [2],[11] | ||
2020 | [1],[8] | 6,288 | ||||
2019 | [2],[11] | 1,017 | ||||
Prior | [2],[11] | 0 | ||||
51 - 55% | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Carrying Value | $ 144,649 | [1] | $ 92,238 | [2] | ||
Percentage of portfolio | 15.70% | [1] | 10.10% | [2] | ||
2022 | $ 76,978 | [1],[8] | $ 74,978 | [2],[11] | ||
2021 | 58,876 | [1],[8] | 17,260 | [2],[11] | ||
2020 | [1],[8] | 8,795 | ||||
2018 | [2],[11] | 0 | ||||
56 - 60% | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Carrying Value | $ 107,098 | [1] | $ 79,039 | [2] | ||
Percentage of portfolio | 11.60% | [1] | 8.70% | [2] | ||
2022 | $ 98,691 | [1],[8] | $ 27,115 | [2],[11] | ||
2021 | 8,407 | [1],[8] | 40,190 | [2],[11] | ||
2020 | 0 | [1],[8] | 0 | [2],[11] | ||
2019 | [1],[8] | 0 | ||||
2018 | [2],[11] | 11,473 | ||||
Prior | [2],[11] | 261 | ||||
61 - 65% | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Carrying Value | $ 456,743 | [1] | $ 559,997 | [2] | ||
Percentage of portfolio | 49.50% | [1] | 61.40% | [2] | ||
2022 | $ 284,722 | [1],[8] | $ 372,645 | [2],[11] | ||
2021 | 112,569 | [1],[8] | 146,640 | [2],[11] | ||
2020 | 21,364 | [1],[8] | 3,102 | [2],[11] | ||
2019 | 1,928 | [1],[8] | 1,474 | [2],[11] | ||
2018 | [2],[11] | 36,136 | ||||
Prior | [1],[8] | 36,160 | ||||
66 - 70% | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Carrying Value | $ 93,104 | [1] | $ 645 | [2] | ||
Percentage of portfolio | 10.10% | [1] | 0.10% | [2] | ||
2022 | $ 71,638 | [1],[8] | $ 645 | [2],[11] | ||
2021 | [1],[8] | 16,561 | ||||
2020 | [1],[8] | 2,681 | ||||
2019 | [1],[8] | 2,224 | ||||
71 - 75% | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Carrying Value | [1] | $ 4,280 | ||||
Percentage of portfolio | [1] | 0.50% | ||||
2022 | [1],[8] | $ 4,280 | ||||
2021 | [8] | 0 | ||||
2020 | [8] | 0 | ||||
2019 | [8] | 0 | ||||
Prior | [8] | 0 | ||||
71 - 80% | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Carrying Value | [2] | $ 0 | ||||
Percentage of portfolio | [2] | 0% | ||||
2022 | [2],[11] | $ 0 | ||||
76 - 80% | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Carrying Value | [1] | $ 2,540 | ||||
Percentage of portfolio | [1] | 0.30% | ||||
2022 | [1],[8] | $ 2,540 | ||||
2021 | [8] | 0 | ||||
2020 | [8] | 0 | ||||
2019 | [8] | 0 | ||||
Prior | [8] | 0 | ||||
Above 80% | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Carrying Value | $ 17,683 | [1] | $ 13,797 | [2] | ||
Percentage of portfolio | 1.90% | [1] | 1.50% | [2] | ||
2022 | $ 2,003 | [8] | $ 3,516 | [2],[11] | ||
2021 | 641 | [1],[8] | 10,281 | [2],[11] | ||
2020 | 15,039 | [1],[8] | 0 | [2],[11] | ||
2018 | [2],[11] | 0 | ||||
Prior | [8] | 0 | ||||
Apartments | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Carrying Value | $ 191,708 | $ 107,765 | ||||
Percentage of portfolio | 20.80% | 11.80% | ||||
2022 | $ 134,816 | [7] | $ 38,232 | [12] | ||
2021 | 49,944 | [7] | 68,356 | [12] | ||
2020 | 5,020 | [7] | 1,177 | [12] | ||
2019 | 1,928 | [7] | 0 | [12] | ||
2018 | [12] | 0 | ||||
Prior | [4] | 0 | ||||
Residential Lots | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Carrying Value | $ 104,100 | $ 111,644 | ||||
Percentage of portfolio | 11.30% | 12.20% | ||||
2022 | $ 56,675 | [4] | $ 85,219 | [12] | ||
2021 | 38,630 | [4] | 26,425 | [12] | ||
2020 | [4] | 8,795 | ||||
2019 | [4] | 0 | ||||
2018 | [12] | 0 | ||||
Prior | [4] | 0 | ||||
Single Family Housing | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Carrying Value | $ 133,702 | $ 87,902 | ||||
Percentage of portfolio | 14.50% | 9.60% | ||||
2022 | $ 124,218 | [4] | $ 84,703 | [12] | ||
2021 | 9,245 | [4] | 3,049 | [12] | ||
2020 | 239 | [4] | 0 | [12] | ||
2019 | 0 | [4] | 0 | [12] | ||
2018 | [12] | 150 | ||||
Prior | 0 | [4] | 0 | [12] | ||
Townhomes | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Carrying Value | $ 106,888 | $ 93,300 | ||||
Percentage of portfolio | 11.60% | 10.20% | ||||
2022 | $ 81,393 | [4] | $ 51,240 | [12] | ||
2021 | 24,701 | [4] | 28,979 | [12] | ||
2020 | 794 | [4] | 0 | [12] | ||
2019 | 0 | [4] | 1,017 | [12] | ||
2018 | [12] | 11,803 | ||||
Prior | 0 | [4] | 261 | [12] | ||
Commercial | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Carrying Value | $ 58,515 | $ 61,592 | ||||
Percentage of portfolio | 6.30% | 6.80% | ||||
2022 | $ 13,838 | [4] | $ 61,592 | [12] | ||
2021 | 44,677 | [4] | 0 | [12] | ||
2020 | [4] | 0 | ||||
2019 | [4] | 0 | ||||
Prior | [4] | 0 | ||||
Entitled Land | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Carrying Value | $ 76,251 | $ 45,098 | ||||
Percentage of portfolio | 8.30% | 4.90% | ||||
2022 | $ 54,265 | [4] | $ 27,763 | [12] | ||
2021 | [4] | 21,986 | ||||
2020 | [4] | 0 | ||||
2019 | [4] | 0 | ||||
Prior | [4] | 0 | ||||
Condos | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Carrying Value | $ 71,975 | $ 64,492 | ||||
Percentage of portfolio | 7.80% | 7.10% | ||||
2022 | $ 29,738 | [4] | $ 8,805 | [12] | ||
2021 | 2,515 | [4] | 18,227 | [12] | ||
2020 | 3,562 | [4] | 0 | [12] | ||
2019 | 0 | [4] | 1,474 | [12] | ||
2018 | [12] | 35,986 | ||||
Prior | [4] | 36,160 | ||||
Mixed Use | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Carrying Value | $ 50,127 | $ 85,929 | ||||
Percentage of portfolio | 5.40% | 9.50% | ||||
2022 | $ 6,209 | [4] | $ 53,530 | [12] | ||
2021 | 30,217 | [4] | 30,474 | [12] | ||
2020 | 11,477 | [4] | 1,925 | [12] | ||
2019 | [4] | 2,224 | ||||
Prior | [4] | 0 | ||||
Hotel | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Carrying Value | $ 30,221 | $ 31,665 | ||||
Percentage of portfolio | 3.30% | 3.50% | ||||
2022 | $ 14,116 | [4] | $ 4,886 | [12] | ||
2021 | 0 | [4] | 26,779 | [12] | ||
2020 | [4] | 16,105 | ||||
2019 | [4] | 0 | ||||
Prior | [4] | 0 | ||||
Unentitled Land | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Carrying Value | $ 17,262 | $ 46,019 | ||||
Percentage of portfolio | 1.90% | 5% | ||||
2022 | $ 16,325 | [4] | $ 42,411 | [12] | ||
2021 | [4] | 937 | ||||
2020 | 0 | [4] | 0 | [12] | ||
2019 | 0 | [4] | 3,608 | [12] | ||
Prior | 0 | [4] | 0 | [12] | ||
Offices | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Carrying Value | $ 18,467 | $ 15,348 | ||||
Percentage of portfolio | 2% | 1.70% | ||||
2022 | $ 12,179 | [4] | $ 8,280 | [12] | ||
2021 | 0 | [4] | 7,068 | [12] | ||
2020 | [4] | 6,288 | ||||
2019 | [4] | 0 | ||||
Prior | [4] | 0 | ||||
Senior Housing | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Carrying Value | $ 16,595 | $ 61,236 | ||||
Percentage of portfolio | 1.80% | 6.70% | ||||
2022 | $ 16,595 | [4] | $ 35,899 | [12] | ||
2021 | 0 | [4] | 25,337 | [12] | ||
2020 | [4] | 0 | ||||
2019 | [4] | 0 | ||||
Prior | [4] | 0 | ||||
Commercial other | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Carrying Value | $ 11,411 | $ 9,080 | ||||
Percentage of portfolio | 1.20% | 1% | ||||
2022 | $ 0 | [4] | $ 9,080 | [12] | ||
2021 | [4] | 11,411 | ||||
2020 | [4] | 0 | ||||
2019 | [4] | 0 | ||||
Prior | [4] | 0 | ||||
Duplex | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Carrying Value | $ 13,639 | $ 6,324 | ||||
Percentage of portfolio | 1.50% | 0.70% | ||||
2022 | $ 13,639 | [4] | $ 6,324 | [12] | ||
2021 | [4] | 0 | ||||
2020 | [4] | 0 | ||||
2019 | 0 | [4] | 0 | [12] | ||
Prior | [4] | 0 | ||||
Retail | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Carrying Value | $ 9,071 | $ 7,873 | ||||
Percentage of portfolio | 1% | 0.90% | ||||
2022 | $ 5,443 | [4] | $ 6,385 | [12] | ||
2021 | 1,741 | [4] | 1,488 | [12] | ||
2020 | [4] | 1,887 | ||||
2019 | [4] | 0 | ||||
Prior | [4] | 0 | ||||
Quadplex | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Carrying Value | $ 8,932 | $ 9,769 | ||||
Percentage of portfolio | 1% | 1.10% | ||||
2022 | $ 8,932 | [4] | $ 9,769 | [12] | ||
2021 | [4] | 0 | ||||
2020 | [4] | 0 | ||||
2019 | [4] | 0 | ||||
Prior | [4] | 0 | ||||
Commercial Lots | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Carrying Value | $ 4,018 | $ 10,227 | ||||
Percentage of portfolio | 0.40% | 1.10% | ||||
2022 | $ 4,018 | [4] | $ 6,670 | [12] | ||
2021 | 0 | [4] | 3,557 | [12] | ||
2020 | [4] | 0 | ||||
2019 | [4] | 0 | ||||
Prior | [4] | 0 | ||||
Triplex | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Carrying Value | $ 560 | |||||
Percentage of portfolio | 0.10% | |||||
2022 | [4] | $ 560 | ||||
2021 | [4] | 0 | ||||
2020 | [4] | 0 | ||||
2019 | [4] | 0 | ||||
Prior | [4] | 0 | ||||
Storage | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Carrying Value | $ 56,481 | |||||
Percentage of portfolio | 6.20% | |||||
2022 | [12] | $ 56,481 | ||||
Vertical Construction | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Carrying Value | $ 552,468 | $ 478,475 | ||||
Percentage of portfolio | 59.80% | 52.50% | ||||
2022 | $ 352,355 | [9] | $ 234,861 | [10] | ||
2021 | 128,130 | [9] | 191,896 | [10] | ||
2020 | 33,895 | [9] | 1,177 | [10] | ||
2019 | 1,928 | [9] | 2,491 | [10] | ||
2018 | [10] | 47,789 | ||||
Prior | 36,160 | [9] | 261 | [10] | ||
Horizontal Development | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Carrying Value | $ 221,078 | $ 196,543 | ||||
Percentage of portfolio | 24.10% | 21.50% | ||||
2022 | $ 144,082 | [9] | $ 169,041 | [10] | ||
2021 | 68,201 | [9] | 27,502 | [10] | ||
2020 | [9] | 8,795 | ||||
2019 | 0 | [9] | 0 | [10] | ||
2018 | [10] | 0 | ||||
Prior | [9] | 0 | ||||
Acquisition | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Carrying Value | $ 15,195 | $ 96,937 | ||||
Percentage of portfolio | 1.60% | 10.60% | ||||
2022 | $ 13,454 | [9] | $ 96,937 | [10] | ||
2021 | [9] | 1,741 | ||||
2019 | [9] | 0 | ||||
Prior | [9] | 0 | ||||
Investment | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Carrying Value | $ 46,536 | $ 65,703 | ||||
Percentage of portfolio | 5% | 7.20% | ||||
2022 | $ 46,536 | [9] | $ 42,509 | [10] | ||
2021 | 0 | [9] | 2,101 | [10] | ||
2020 | [10] | 0 | ||||
2019 | 0 | [9] | 3,608 | [10] | ||
2018 | [10] | 17,485 | ||||
Prior | 0 | [9] | 0 | [10] | ||
Rehabilitation | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Carrying Value | $ 39,422 | $ 27,023 | ||||
Percentage of portfolio | 4.30% | 3% | ||||
2022 | $ 12,936 | [9] | $ 11,320 | [10] | ||
2021 | 15,009 | [9] | 15,703 | [10] | ||
2020 | [9] | 11,477 | ||||
2019 | [9] | 0 | ||||
Prior | [9] | 0 | ||||
Land Entitlement | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Carrying Value | $ 26,132 | $ 24,529 | ||||
Percentage of portfolio | 2.80% | 2.70% | ||||
2022 | $ 4,146 | [9] | $ 24,529 | [10] | ||
2021 | [9] | 21,986 | ||||
2019 | [9] | 0 | ||||
2018 | [12] | 17,335 | ||||
Prior | [9] | 0 | ||||
Bridge | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Carrying Value | $ 22,611 | $ 22,534 | ||||
Percentage of portfolio | 2.40% | 2.50% | ||||
2022 | $ 19,450 | [9] | $ 18,072 | [10] | ||
2021 | 937 | [9] | 2,537 | [10] | ||
2020 | [10] | 1,925 | ||||
2019 | [9] | 2,224 | ||||
Prior | [9] | 0 | ||||
Unfunded Loan Commitment [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
CECL Allowance | [13] | (1,474) | (904) | $ 0 | ||
Unfunded Loan Commitment [Member] | Accounts payable and accrued liabilities | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
CECL Allowance | (1,500) | $ (900) | ||||
Allowances on excess amortized cost over fair value | $ 35,000 | |||||
[1] Represents LTV as of origination or latest amendment. LTVs above 65 % generally represent loans in contractual default status where we have agreed to extend funds to the borrower above 65 % in order to facilitate successful completion of the construction and return of capital. Represents LTV as of origination or latest amendment. LTVs above 65 % generally represent loans in contractual default status where we have agreed to extend funds to the borrower above 65 % in order to ensure successful completion of the construction and return of capital. Includes $ 35.0 million in loan specific allowances for loans deemed collateral dependent based on the excess amortized cost over the fair value of the underlying collateral. In addition, $ 1.5 million of the CECL allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our consolidated balance sheet. Represents the year of either origination or amendment where the loan incurred a full re-underwriting in connection with the amendment. Includes $ 0.7 million in loan specific allowances for loans deemed collateral dependent based on the excess amortized cost over the fair value of the underlying collateral. In addition, $ 0.9 million of the CECL allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our consolidated balance sheet. Includes $ 0.7 million in loan specific allowances for loans deemed collateral dependent based on the excess amortized cost over the fair value of the underlying collateral. In addition, $ 0.9 million of the CECL allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our consolidated balance sheet. Includes $ 35.0 million in loan specific allowances for loans deemed collateral dependent based on the excess amortized cost over the fair value of the underlying collateral. In addition, $ 1.5 million of the CECL allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our consolidated balance sheet. Represents the year of either origination or amendment where the loan incurred a full re-underwriting in connection with the amendment. Represents the year of either origination or amendment where the loan incurred a full re-underwriting in connection with the amendment Represents the year of either origination or amendment where the loan incurred a full re-underwriting in connection with the amendment. Represents the year of either origination or amendment where the loan incurred a full re-underwriting in connection with the amendment. Represents the year of either origination or amendment where the loan incurred a full re-underwriting in connection with the amendment. CECL allowance related to unfunded commitments is presented as a liability under accounts payable and accrued liabilities in our consolidated balance sheet. |
Mortgage Notes Receivable - S_3
Mortgage Notes Receivable - Schedule of carrying value of collateral dependent loans (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Carrying Value | $ 923,442 | [1] | $ 911,744 | [2] | |
CECL Allowance | (41,492) | [1],[3],[4] | (10,394) | [2],[5],[6] | |
Financing Receivable, after Allowance for Credit Loss, Total | 881,950 | [1] | 901,350 | [2] | |
Allowances on excess amortized cost over fair value | 700 | ||||
Loan portfolio [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Carrying Value | 202,835 | 45,772 | |||
CECL Allowance | (36,666) | (1,834) | |||
Financing Receivable, after Allowance for Credit Loss, Total | 166,169 | 43,938 | |||
Senior Housing [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Carrying Value | 16,595 | 61,236 | |||
Senior Housing [Member] | Loan portfolio [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Carrying Value | 25,337 | ||||
CECL Allowance | (1,103) | ||||
Financing Receivable, after Allowance for Credit Loss, Total | 24,234 | ||||
Entitled Land [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Carrying Value | 76,251 | 45,098 | |||
Entitled Land [Member] | Loan portfolio [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Carrying Value | 17,335 | ||||
CECL Allowance | (42) | ||||
Financing Receivable, after Allowance for Credit Loss, Total | 17,293 | ||||
Single Family Housing [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Carrying Value | 16,993 | ||||
CECL Allowance | (950) | ||||
Financing Receivable, after Allowance for Credit Loss, Total | 16,043 | ||||
Single Family Housing [Member] | Loan portfolio [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Carrying Value | 1,730 | ||||
CECL Allowance | (15) | ||||
Financing Receivable, after Allowance for Credit Loss, Total | 1,715 | ||||
Condos [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Carrying Value | 71,975 | 64,492 | |||
Condos [Member] | Loan portfolio [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Carrying Value | 42,237 | 1,109 | |||
CECL Allowance | (5,892) | (673) | |||
Financing Receivable, after Allowance for Credit Loss, Total | 36,345 | 436 | |||
Townhomes [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Carrying Value | 106,888 | 93,300 | |||
Townhomes [Member] | Loan portfolio [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Carrying Value | 18,296 | 261 | |||
CECL Allowance | (1,706) | (1) | |||
Financing Receivable, after Allowance for Credit Loss, Total | 16,590 | 260 | |||
Hotel | Loan portfolio [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Carrying Value | 16,106 | ||||
CECL Allowance | (9,151) | ||||
Financing Receivable, after Allowance for Credit Loss, Total | 6,955 | ||||
Offices [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Carrying Value | 6,288 | ||||
CECL Allowance | [7] | (5,042) | |||
Financing Receivable, after Allowance for Credit Loss, Total | 1,246 | ||||
Offices [Member] | Loan portfolio [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Carrying Value | 6,947 | ||||
CECL Allowance | (978) | ||||
Financing Receivable, after Allowance for Credit Loss, Total | 5,969 | ||||
Residential Lots [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Carrying Value | 104,100 | 111,644 | |||
Residential Lots [Member] | Loan portfolio [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Carrying Value | 70,664 | ||||
CECL Allowance | (11,519) | ||||
Financing Receivable, after Allowance for Credit Loss, Total | 59,145 | ||||
Commercial Other [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Carrying Value | 11,411 | 9,080 | |||
Mixed Use [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Carrying Value | 50,127 | 85,929 | |||
Mixed Use [Member] | Loan portfolio [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Carrying Value | 3,318 | ||||
CECL Allowance | (1,320) | ||||
Financing Receivable, after Allowance for Credit Loss, Total | 1,998 | ||||
Retail [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Carrying Value | 9,071 | $ 7,873 | |||
Retail [Member] | Loan portfolio [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Carrying Value | 21,986 | ||||
CECL Allowance | (108) | ||||
Financing Receivable, after Allowance for Credit Loss, Total | $ 21,878 | ||||
[1] Represents LTV as of origination or latest amendment. LTVs above 65 % generally represent loans in contractual default status where we have agreed to extend funds to the borrower above 65 % in order to facilitate successful completion of the construction and return of capital. Represents LTV as of origination or latest amendment. LTVs above 65 % generally represent loans in contractual default status where we have agreed to extend funds to the borrower above 65 % in order to ensure successful completion of the construction and return of capital. Includes $ 35.0 million in loan specific allowances for loans deemed collateral dependent based on the excess amortized cost over the fair value of the underlying collateral. In addition, $ 1.5 million of the CECL allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our consolidated balance sheet. Represents the year of either origination or amendment where the loan incurred a full re-underwriting in connection with the amendment. Includes $ 0.7 million in loan specific allowances for loans deemed collateral dependent based on the excess amortized cost over the fair value of the underlying collateral. In addition, $ 0.9 million of the CECL allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our consolidated balance sheet. Includes $ 0.7 million in loan specific allowances for loans deemed collateral dependent based on the excess amortized cost over the fair value of the underlying collateral. In addition, $ 0.9 million of the CECL allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our consolidated balance sheet. Includes $ 35.0 million in loan specific allowances for loans deemed collateral dependent based on the excess amortized cost over the fair value of the underlying collateral. In addition, $ 1.5 million of the CECL allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable and accrued liabilities in our consolidated balance sheet. |
Investment in Real Property - S
Investment in Real Property - Schedule of carrying value of owned real estate (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) Loan | Dec. 31, 2021 USD ($) Loan | |
Real Estate [Line Items] | ||
Investment in real property held for use, net | $ 63,382 | $ 15,536 |
Investment in real property held for sale, net | 24,516 | 52,531 |
Real Estate Investment Property, Net, Total | $ 87,898 | $ 68,067 |
Number of Loans | Loan | 11 | 9 |
Condos | ||
Real Estate [Line Items] | ||
Real Estate Investment Property, Net, Total | $ 0 | $ 28,441 |
Offices | ||
Real Estate [Line Items] | ||
Real Estate Investment Property, Net, Total | 15,414 | 19,388 |
Townhomes | ||
Real Estate [Line Items] | ||
Real Estate Investment Property, Net, Total | 6,712 | 9,281 |
Single Family Housing | ||
Real Estate [Line Items] | ||
Real Estate Investment Property, Net, Total | 8,538 | 4,134 |
Retail | ||
Real Estate [Line Items] | ||
Real Estate Investment Property, Net, Total | 0 | 3,811 |
Residential Lots | ||
Real Estate [Line Items] | ||
Real Estate Investment Property, Net, Total | 2,293 | 3,012 |
Real Estate Held-for-sale One [Member] | ||
Real Estate [Line Items] | ||
Investment in real property held for sale, net | $ 24,516 | $ 52,531 |
Number of Loans | Loan | 7 | 5 |
Real Estate Held-for-sale Two [Member] | ||
Real Estate [Line Items] | ||
Investment in real property held for use, net | $ 63,382 | $ 15,536 |
Number of Loans | Loan | 4 | 4 |
Senior Housing [Member] | ||
Real Estate [Line Items] | ||
Real Estate Investment Property, Net, Total | $ 49,917 | $ 0 |
Apartments | ||
Real Estate [Line Items] | ||
Real Estate Investment Property, Net, Total | $ 5,024 | $ 0 |
Investment in Real Property -_2
Investment in Real Property - Schedule of investment in real property, held for sale and held for use (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Real Estate [Line Items] | ||||
Real property operating expenses and depreciation | $ 6,365 | $ 108 | $ 168 | |
Impairment on real property | 7,596 | 0 | 0 | |
Net (loss) income | (116,391) | 82,488 | 90,231 | |
Real Estate Held-for-sale One [Member] | ||||
Real Estate [Line Items] | ||||
Real property operating expenses and depreciation | 1,990 | 101 | 168 | |
Revenue from operations | 276 | 0 | 0 | |
Gain on sale | 984 | |||
Depreciation | [1] | 125 | 0 | 0 |
Impairment on real property | 6,111 | 0 | 0 | |
Net (loss) income | (6,966) | (101) | (168) | |
Real Estate Held-for-sale Two [Member] | ||||
Real Estate [Line Items] | ||||
Real property operating expenses and depreciation | 3,697 | 7 | 0 | |
Revenue from operations | 2,523 | 0 | 0 | |
Depreciation | 553 | 0 | 0 | |
Impairment on real property | 1,485 | 0 | 0 | |
Net (loss) income | $ (3,212) | $ (7) | $ 0 | |
[1] Depreciation incurred for a real property before it was reclassified to held for sale. |
Investment in Real Property - A
Investment in Real Property - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Property | Apr. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) Property | |
Defined Benefit Plan Disclosure [Line Items] | |||
Number of properties | Property | 11 | 9 | |
Real Estate Project Value | $ 87.9 | $ 68.1 | |
Extend maturity date | Apr. 01, 2023 | ||
Promissory note principal amount | $ 25.9 | ||
Additional advance payment | $ 0.4 | ||
Unrelated Party [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Real property carrying value | 28.4 | ||
Real property sale price | $ 29 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair value of assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Carrying Value | ||
Financial Assets | ||
Cash and cash equivalents | $ 54,964 | $ 132,889 |
Mortgage notes receivable held for investment, net | 881,950 | 901,350 |
Interest and fees receivable, net | 14,775 | 17,526 |
Financial Liabilities | ||
Senior unsecured notes | 97,789 | 97,223 |
Private placement warrant liability | 25 | 1,838 |
Estimated Fair Value | ||
Financial Assets | ||
Cash and cash equivalents | 54,964 | 132,889 |
Mortgage notes receivable held for investment, net | 865,304 | 901,350 |
Interest and fees receivable, net | 14,775 | 17,526 |
Financial Liabilities | ||
Senior unsecured notes | 99,990 | 100,000 |
Private placement warrant liability | 25 | 1,838 |
Level 1 | Estimated Fair Value | ||
Financial Assets | ||
Cash and cash equivalents | 54,964 | 132,889 |
Financial Liabilities | ||
Senior unsecured notes | 99,990 | 100,000 |
Level 2 | Estimated Fair Value | ||
Financial Assets | ||
Interest and fees receivable, net | 14,775 | 17,526 |
Financial Liabilities | ||
Private placement warrant liability | 25 | 1,838 |
Level 3 | Estimated Fair Value | ||
Financial Assets | ||
Mortgage notes receivable held for investment, net | $ 865,304 | $ 901,350 |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation Methodologies and Inputs Used for Assets Measured at Fair Value (Details) - Non recurring $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Real Property Held For Sale [Member] | Minimum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Range of inputs | [1] | 0 | |
Real Property Held For Sale [Member] | Maximum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Range of inputs | [1] | 10 | |
Collateral Dependent Loans [Member] | Minimum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Range of inputs | [1] | 0 | |
Collateral Dependent Loans [Member] | Maximum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Range of inputs | [1] | 10 | |
Real Property Held For Use [Member] | Minimum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Range of inputs | [1] | 0 | |
Real Property Held For Use [Member] | Maximum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Range of inputs | [1] | 10 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | $ 136,076 | $ 835 | |
Carrying Value | 121,265 | 436 | |
Level 3 | Real Property Held For Sale [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | [1] | 15,075 | 0 |
Carrying Value | [1] | 14,628 | 0 |
Level 3 | Collateral Dependent Loans [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | [1] | 87,622 | 835 |
Carrying Value | [1] | 81,470 | 436 |
Level 3 | Real Property Held For Use [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | [1] | 33,379 | 0 |
Carrying Value | [1] | $ 25,167 | $ 0 |
[1] Previously reported amounts included all real properties and collateral dependent loans regardless of whether an adjustment was required to mark to fair value in the reporting period. The current disclosure represents only those loans and properties for which an adjustment was required to report at fair value on a nonrecurring basis during the reporting periods. |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Change in fair value of warrant liabilities | $ (1,813) | $ 1,838 | $ (5,492) | |
Investment Interest Rate | 10.20% | |||
Debt, Weighted Average Interest Rate | 0.04% | |||
Maximum [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Investment Interest Rate | 0.14% | |||
Maximum [Member] | Real Property [Member] | Fair Value, Nonrecurring [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Range of inputs | [1] | 10 | ||
Maximum [Member] | Collateral Dependent Loans [Member] | Fair Value, Nonrecurring [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Range of inputs | [1] | 10 | ||
Minimum [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Investment Interest Rate | 0.01% | |||
Minimum [Member] | Real Property [Member] | Fair Value, Nonrecurring [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Range of inputs | [1] | 0 | ||
Minimum [Member] | Collateral Dependent Loans [Member] | Fair Value, Nonrecurring [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Range of inputs | [1] | 0 | ||
Warrant [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Share price | $ 0.005 | $ 0.35 | ||
Private Placement Warrants | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Warrants outstanding (in shares) | 5.2 | 5.2 | ||
Warrants outstanding | $ 20 | $ 1,800 | ||
Share price | $ 0.001 | $ 0.09 | ||
Fair Value Measurement Transfer from Level 3 To Level 2 Description | The fair value of the 5.2 million private placement warrants, estimated using the quoted share price of the public warrants, was approximately $0.001 and $0.09 per warrant or $0.005 and $0.35 per share to arrive at $0.02 and $1.8 million, respectively, as of December 31, 2022 and 2021. Refer to Note 9 for additional details on the private placement warrants. | |||
[1] Previously reported amounts included all real properties and collateral dependent loans regardless of whether an adjustment was required to mark to fair value in the reporting period. The current disclosure represents only those loans and properties for which an adjustment was required to report at fair value on a nonrecurring basis during the reporting periods. |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Carrying amount of goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill, Beginning Balance | $ 136,965 | $ 136,965 | |
Goodwill Impairment | 136,965 | 0 | $ 0 |
Goodwill, Ending Balance | $ 0 | $ 136,965 | $ 136,965 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of change in net book value of intangible assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Less Accumulated amortization | $ 1,000 | $ 718 |
Intangible assets, net | 0 | 282 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired Intangibles, Gross | $ 1,000 | $ 1,000 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Additional Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 0 | $ 136,965 | $ 136,965 | |
Goodwill Impairment | $ 136,965 | $ 0 | $ 0 | |
Net assets of fair value over carrying value | 0% | |||
Remaining goodwill | $ 0 | |||
Customer Relationships [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Adjustment to fair value of intangible assets | $ 6,000 | |||
Goodwill, Period Increase (Decrease) | 5,000 | |||
Goodwill | $ 137,000 | |||
Amortization of intangible assets | 900 | |||
Increase (Decrease) in Intangible Assets, Current | $ 1,000 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities - Summary of accounts payable and accrued liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts Payable and Accrued Liabilities [Abstract] | ||
Borrower deposits | $ 5,519 | $ 925 |
Accounts payable and other liabilities | 4,223 | 4,315 |
Accrued salaries, bonus and commissions. | 2,272 | 2,034 |
Allowance for credit losses on unfunded commitments | 1,475 | 906 |
Total | $ 13,489 | $ 8,180 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Thousands | Nov. 12, 2021 | Feb. 19, 2021 | Dec. 31, 2022 | Dec. 31, 2021 |
Line of Credit Facility [Line Items] | ||||
Aggregate principal amount | $ 100,000 | $ 100,000 | ||
Average interest rate | 0.04% | |||
Debt issuance cost | $ 97,789 | $ 97,223 | ||
5.0% Senior Unsecured Notes Due 2026 [Member] | Private Offering [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Aggregate principal amount | $ 100,000 | |||
Fixed interest rate | 5% | |||
Debt issuance cost | $ 2,900 | |||
5.0% Senior Unsecured Notes Due 2026 [Member] | Private Offering [Member] | Future [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maturity Date | Nov. 15, 2026 | |||
Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Commitment Fee Percentage | 1% | |||
Amount of revolving credit facility | $ 135,000 | |||
Maturity Date | Feb. 19, 2024 | |||
Amortization period | 3 years | |||
Revolving credit facility outstanding, amount | $ 0 | |||
Deferred financing costs | $ 4,500 | |||
Revolving Credit Facility [Member] | Prime Rate Member | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Interest Rate During Period | 2.75% |
Debt - Schedule of Carrying Val
Debt - Schedule of Carrying Values Senior Unsecured Notes (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 100,000 | $ 100,000 |
Debt issuance costs | (2,861) | (2,855) |
Amortization of debt issuance costs | 650 | 78 |
Total notes, net | $ 97,789 | $ 97,223 |
Debt - Schedule of Senior Unsec
Debt - Schedule of Senior Unsecured Notes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Line of Credit Facility [Line Items] | ||
Aggregate principal amount | $ 100,000 | $ 100,000 |
Amortization of Deferred Debt Issuance Costs | $ 2,082 | $ 1,333 |
Debt - Summary of Interest Expe
Debt - Summary of Interest Expense Related to Senior Unsecured Notes and Revolving Credit Facility (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Line of Credit Facility [Line Items] | ||
Amortization of Deferred Debt Issuance Costs | $ 2,082 | $ 1,333 |
Interest on Borrowings | 5,137 | 801 |
Undrawn Fees | 1,419 | 1,186 |
5.00% Senior Unsecured Notes [Member] | ||
Line of Credit Facility [Line Items] | ||
Amortization of Deferred Debt Issuance Costs | 572 | 78 |
Interest on Borrowings | 4,986 | 694 |
Undrawn Fees | 0 | 0 |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Amortization of Deferred Debt Issuance Costs | 1,510 | 1,255 |
Interest on Borrowings | 151 | 107 |
Undrawn Fees | $ 1,419 | $ 1,186 |
Stockholders' Equity and Earn_3
Stockholders' Equity and Earnings per Common Share - Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net income | $ (116,391) | $ 82,488 | ||
Basic weighted-average shares of common stock outstanding | 132,841,196 | 132,579,289 | 132,209,495 | |
Dilutive effect of share-based compensation - unvested restricted stock units | [1] | 0 | 87,213 | |
Diluted weighted-average shares of common stock outstanding | 132,841,196 | 132,666,502 | 132,261,113 | |
Basic earnings per common share | $ (0.88) | $ 0.62 | $ 0.68 | |
Diluted earnings per share | $ (0.88) | $ 0.62 | $ 0.68 | |
[1] Amounts exclude all potential common and common equivalent shares for periods when there is a net loss from continuing operations. |
Stockholders' Equity and Earn_4
Stockholders' Equity and Earnings per Common Share - Schedule of Stock Equivalents Excluded from Diluted Net Income Per Share (Details) - shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Weighted-average restricted stock units outstanding | 27,091 | 199,709 |
Unexercised public and private warrants | 15,604,192 | 15,604,304 |
Total stock equivalents excluded | 15,631,283 | 15,804,013 |
Stockholders' Equity and Earn_5
Stockholders' Equity and Earnings per Common Share - (Additional Information) (Details) $ / shares in Units, shares in Millions | 12 Months Ended | |||
Nov. 07, 2022 USD ($) $ / shares | Dec. 31, 2022 USD ($) Vote $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Mar. 02, 2021 USD ($) | |
Class of Warrant or Right [Line Items] | ||||
Exercise price per share (in dollars per share) | $ / shares | $ 11.50 | $ 11.50 | ||
Warrants issued | shares | 15.6 | 15.6 | ||
Private placement warrant liabilities | $ 20,000 | |||
Common stock number of voting rights | Vote | 1 | |||
Common Stock Aggregate Gross Sales Price | $ 200,000,000 | |||
Common stock par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||
Remained available for future repurchases | $ 70,000,000 | |||
Public Warrants | ||||
Class of Warrant or Right [Line Items] | ||||
Warrants outstanding (in shares) | shares | 41.7 | 41.7 | ||
Private Placement Warrants | ||||
Class of Warrant or Right [Line Items] | ||||
Warrants outstanding (in shares) | shares | 5.2 | 5.2 | ||
Warrants outstanding | $ 20,000 | $ 1,800,000 | ||
Share Price | $ / shares | $ 0.001 | $ 0.09 | ||
Directors | ||||
Class of Warrant or Right [Line Items] | ||||
Payments for Repurchase of Common Stock | $ 75,000,000 | |||
Common stock par value (in dollars per share) | $ / shares | $ 0.001 |
Income Taxes - Additional infor
Income Taxes - Additional information (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Income Tax Disclosure [Abstract] | |
Uncertain tax positions | $ 0 |
Amount accrued for penalties or interest | $ 0 |
Nondeductible excise tax | 4% |
Equity Incentive Plan - Additio
Equity Incentive Plan - Additional information (Details) - 2019 Stock Incentive Plan [Member] - shares | Dec. 31, 2022 | Nov. 14, 2019 |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Shares authorized under plan | 5,000,000 | |
Shares available for grant | 3,291,351 |
Equity Incentive Plan - Schedul
Equity Incentive Plan - Schedule of Assumptions Used in Estimating Fair Value of Derivative Liability (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | ||
Performance share fair value | $ 6,740 | $ 8,200 |
Risk-free interest rate | 1.74% | 0.27% |
Expected volatility | 30.48% | 25.71% |
Expected life (in years) | 2 years 10 months 6 days | 2 years 9 months 7 days |
Expected dividend yield | 9.82% | 8.13% |
Equity Incentive Plan - Summary
Equity Incentive Plan - Summary of Activity Related to Restricted Stock - (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted Stock Units [Member] | ||
Shares | ||
Outstanding at the beginning | 484,316 | 434,143 |
Granted | 750,038 | 295,063 |
Vested | (285,853) | (231,053) |
Forfeited | (200,589) | (13,837) |
Outstanding at the end | 747,912 | 484,316 |
Weighted Average Grant Date Fair Market Value | ||
Granted | $ 6.02 | $ 10.08 |
Vested | 10.01 | 10.61 |
Forfeited | $ 7.31 | $ 10.58 |
Performance Based Restricted Share Unit [Member] | ||
Shares | ||
Outstanding at the beginning | 113,958 | 0 |
Granted | 276,679 | 113,958 |
Forfeited | (182,976) | |
Outstanding at the end | 207,661 | 113,958 |
Weighted Average Grant Date Fair Market Value | ||
Granted | $ 6.74 | $ 8.20 |
Forfeited | $ 7.07 |
Equity Incentive Plan - Compens
Equity Incentive Plan - Compensation Additional information (Details) - Restricted Stock Units [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Unrecognized compensation cost related to unvested stock-based compensation arrangements | $ 4.1 |
Weighted-average recognition period | 1 year 6 months |
Commitments and Contingencies -
Commitments and Contingencies - Contractual Obligations (Details) $ in Thousands | Dec. 31, 2022 USD ($) | |
Other Commitments [Line Items] | ||
Less than 1 year | $ 262,130 | |
1-3 years | 170,695 | |
3-5 years | 2,140 | |
More than 5 years | 4,885 | |
Total | 439,850 | |
Construction holdbacks | ||
Other Commitments [Line Items] | ||
Less than 1 year | 261,243 | [1] |
1-3 years | 168,677 | [1] |
3-5 years | 0 | [1] |
More than 5 years | 0 | [1] |
Total | 429,920 | [1] |
Operating lease obligations | ||
Other Commitments [Line Items] | ||
Less than 1 year | 887 | [2] |
1-3 years | 2,018 | [2] |
3-5 years | 2,140 | [2] |
More than 5 years | 4,885 | [2] |
Total | $ 9,930 | [2] |
[1] The funding timing and amounts of construction holdbacks are uncertain as these commitments relate to loans for construction costs and depend on the progress and performance of the underlying projects. In addition, $ 22.8 million of holdbacks are excluded from this table as they represent capital expenditures required to complete construction for defaulted loans that we are no longer required to pay. The total operating lease obligation includes $ 2.4 million of imputed interest. |
Commitments and Contingencies_2
Commitments and Contingencies - Contractual Obligations (Parenthetical) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Imputed Interest | $ 2.4 |
Capital expenditures | $ 22.8 |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - Mortgage notes receivables - Geographic concentration risk | 12 Months Ended | |
Dec. 31, 2022 State Country | Dec. 31, 2021 | |
Concentration Risk [Line Items] | ||
Number of states in mortgage loans were originated | State | 20 | |
Number of counties in which loan portfolio concentrated | Country | 10 | |
Major Country | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 46.70% | 46.70% |
Commitments and Contingencies_4
Commitments and Contingencies - Lease Commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |||||
Lease incentives | $ 11,700 | ||||
Right-of-use assets obtained in exchange | $ 6,400 | $ 0 | $ 6,360 | $ 0 | |
Tenant improvements | $ 2,000 | $ 0 | $ 1,959 | $ 0 | |
Discount rate for the operation lease | 6% | ||||
Imputed interest amount | $ 3,300 |
Employee Benefit Plan (Addition
Employee Benefit Plan (Additional Information) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Retirement Benefits [Abstract] | |
Broadmark annual contributions on employee contributions | 3.50% |
Employees contributions of annual compensation | 6% |
Total Expenses of Compensations | $ 0.3 |
Related Party Transactions Addi
Related Party Transactions Additional information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Aug. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||||
Payments to acquire mortgage notes receivable | $ 0 | $ 43,498 | $ 0 | |
Broadmark Private Reit Llc [Member] | ||||
Related Party Transaction [Line Items] | ||||
Payments to acquire mortgage notes receivable | $ 43,500 |
Subsequent Events Additional in
Subsequent Events Additional information (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||||||
Feb. 26, 2023 | Feb. 15, 2023 $ / shares | Jan. 15, 2023 $ / shares | Dec. 31, 2022 USD ($) | Feb. 10, 2023 USD ($) a | Feb. 09, 2023 USD ($) a | Jan. 24, 2023 USD ($) ft² | |
Denver Colorado | |||||||
Subsequent Event [Line Items] | |||||||
Current expected credit loss reserve | $ 2.8 | ||||||
Northbrook Illinois | |||||||
Subsequent Event [Line Items] | |||||||
Current expected credit loss reserve | 0.3 | ||||||
Loveland Colorado | |||||||
Subsequent Event [Line Items] | |||||||
Current expected credit loss reserve | 0.4 | ||||||
Utah | |||||||
Subsequent Event [Line Items] | |||||||
Current expected credit loss reserve | $ 84.9 | ||||||
Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Common stock dividend declared | $ / shares | $ 0.035 | $ 0.035 | |||||
Subsequent Event | Denver Colorado | |||||||
Subsequent Event [Line Items] | |||||||
Collateral security held investment | $ 33.4 | ||||||
Area of Land | ft² | 84,378 | ||||||
Subsequent Event | Northbrook Illinois | |||||||
Subsequent Event [Line Items] | |||||||
Collateral security held investment | $ 15 | ||||||
Area of Land | a | 5.4 | ||||||
Subsequent Event | Loveland Colorado | |||||||
Subsequent Event [Line Items] | |||||||
Collateral security held investment | $ 9.5 | ||||||
Area of Land | a | 123.4 | ||||||
Subsequent Event | Utah | |||||||
Subsequent Event [Line Items] | |||||||
Collateral security held investment | $ 8.5 | ||||||
Area of Land | a | 70.6 | ||||||
Subsequent Event | Ready Capital Member | |||||||
Subsequent Event [Line Items] | |||||||
Conversion of stock, type of stock converted | 0.47233 |