Broadmark Realty Capital (BRMK) 10-Q 11 May 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	May 08, 2020
Document and Entity Information [Abstract]
Entity Registrant Name	Broadmark Realty Capital Inc.
Entity Central Index Key	0001784797
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		132,111,329
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Assets
Cash and cash equivalents	$ 258,435	$ 238,214
Mortgage notes receivable, net	782,752	821,589
Interest and fees receivable	6,459	4,108
Investment in real property, net	3,703	5,837
Intangible assets, net	874	4,970
Goodwill	136,965	131,965
Other Assets	5,880	2,046
Total assets	1,195,068	1,208,729
Liabilities
Accounts payable and accrued liabilities	3,534	8,415
Dividends payable	10,569	15,842
Total liabilities	14,103	24,257
Commitments and Contingencies
Equity
Common stock, $0.001 par value, 500,000,000 shares authorized, 132,111,329 and 132,015,635 shares issued and outstanding at March 31, 2020 and December 31, 2019	132	132
Preferred Stock, $0.001 par value, 100,000,000 shares authorized, 0 shares issued and outstanding at March 31, 2020 and December 31, 2019
Additional Paid in Capital	1,210,034	1,209,120
Accumulated deficit	(29,201)	(24,780)
Total equity	1,180,965	1,184,472
Total liabilities and equity	$ 1,195,068	$ 1,208,729

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2020	Dec. 31, 2019
Condensed Consolidated Balance Sheets
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)	132,111,329	132,015,635
Common stock shares outstanding (in shares)	132,111,329	132,015,635
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

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2020	Mar. 31, 2019
Financial Designation		Successor	Predecessor	[1]
Revenues
Revenues		$ 31,768	$ 29,783	[1]
Other Income:
Change in fair value of optional subscription liabilities		4,604
Impairment:
Loan loss provision (recovery)		3,622	(224)	[1]
Operating expenses:
Compensation and employee benefits		3,193	1,928	[1]
General and administrative		2,278	3,090	[1]
Total Expenses		9,093	4,794	[1]
Income before income taxes		27,279	24,989	[1]
Income tax provision			0
Net income		$ 27,279	24,989	[1]
Earnings per common share:
Basic	[2]	$ 0.21
Diluted	[2]	$ 0.21
Weighted-average shares of common stock outstanding, basic and diluted
Basic		132,111,329
Diluted		132,336,315
Interest Income [Member]
Revenues
Revenues		$ 24,553	20,623	[1]
Fee Income [Member]
Revenues
Revenues		$ 7,215	$ 9,160	[1]
[1]	Predecessor periods are combined as disclosed in Note 1.
[2]	The Company determined that earnings per unit in the Predecessor periods would not be meaningful to the users of this filing, given the different unit holders and members' equity structures of each individual entity in the Predecessor Company Group.

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands		Preferred units	Common Units [Member]Common Class A Units [Member]	Common Units [Member]Common Class P Units [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings (Accumulated Deficit) [Member]	Total
Financial Designation	[1]							Predecessor
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income							$ 24,989	$ 24,989	[1]
Balances as of at Dec. 31, 2018		$ 684,979	$ 1			$ 767	(637)	685,110
Balance as of (in units) at Dec. 31, 2018			20,950	50
Balance as of (in units) at Dec. 31, 2018		6,827,701
Increase (Decrease) In Members Equity [RollForward]
Contributions		$ 79,535	$ 200					79,735
Contributions (in units)		796,028	850
Reinvestments		$ 7,094						7,094
Reinvestments (in units)		71,086
Net Income							24,989	24,989	[1]
Distributions							(24,134)	(24,134)
Redemptions		$ (13,331)						(13,331)
Redemptions (in units)		(133,513)
Compensation expense related to grant of profits interest						734		734
Compensation expense related to grants of restricted stock units.			(100)	100
Grants of restricted units						134		134
Grants of restricted units (in unit)			150
Balance as of at Mar. 31, 2019		$ 758,277	$ 201			1,635	218	$ 760,331
Balance as of (in units) at Mar. 31, 2019			21,850	150
Balance as of (in units) at Mar. 31, 2019		7,561,302
Financial Designation								Successor
Balance at Dec. 31, 2019					$ 132	1,209,120	(24,780)	$ 1,184,472
Balance, Shares at Dec. 31, 2019					132,015,635
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of shares from vested RSUs (in shares)					95,694
Net Income							27,279	27,279
Dividends							(31,700)	(31,700)
Share based compensation expense						914		914
Balance at Mar. 31, 2020					$ 132	$ 1,210,034	(29,201)	1,180,965
Balance, Shares at Mar. 31, 2020					132,111,329
Increase (Decrease) In Members Equity [RollForward]
Net Income							$ 27,279	$ 27,279
[1]	Predecessor periods are combined as disclosed in Note 1.

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands		2 Months Ended	3 Months Ended			10 Months Ended		12 Months Ended
		Dec. 31, 2019	Mar. 31, 2020	Mar. 31, 2019		Nov. 14, 2019		Dec. 31, 2018
Condensed Consolidated Statement of Cash Flows [Abstract]
Financial Designation, Predecessor and Successor [Fixed List]		Successor	Successor	Predecessor	[1]	Predecessor		Predecessor
Cash flows from operating activities
Net income			$ 27,279	$ 24,989	[1]
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization			(904)
Depreciation	[1]			18
Compensation expense related to grant of profits interest	[1]			734
Share-based compensation expense for restricted stock units			914
Grants of restricted units	[1]			134
Provision for loan losses			3,622	(224)	[1]
Write down of investment in real property	[1]			686
Fair value adjustment to optional subscription liability			(4,604)
Changes in operating assets and liabilities:
Interest and fees receivable			(2,351)	(1,185)	[1]
Change in other assets			(53)	109	[1]
Accounts payable and accrued liabilities			(277)	(450)	[1]
Net cash provided by operating activities			23,626	24,811	[1]
Cash flows from investing activities:
Investments in fixed assets	[1]			(14)
Proceeds from sale of real property			2,213	407	[1]
Improvements to investments in real property			(79)	(66)	[1]
Investments in mortgage notes receivable	[1]			(71,236)
Change in mortgage notes receivable			31,434
Net cash provided by (used in) investing activities			33,568	(70,909)	[1]
Cash flows from financing activities:
Contributions from members	[1]			79,535
Contributions received in advance	[1]			(117)
Dividends paid			(36,973)
Distributions	[1]			(16,116)
Redemptions of members	[1]			(13,331)
Net cash provided by (used in) financing activities			(36,973)	49,971	[1]
Net increase in cash and cash equivalents			20,221	3,873	[1]
Cash and cash equivalents, beginning of period			238,214	112,234	[1]	$ 112,234	[1]
Cash and cash equivalents, end of period		$ 238,214	258,435	116,107	[1]			$ 112,234	[1]
Supplemental disclosure of non-cash investing and financing activities
Dividends payable		$ 15,842	10,569
Reinvested distributions	[1]			$ 7,094
Measurement period adjustment to goodwill and intangible assets			$ 5,000
[1]	Predecessor periods are combined as disclosed in Note 1.

Organization and business

Organization and business	3 Months Ended
	Mar. 31, 2020
Organization and business
Organization and business	Note 1 - Organization and business Broadmark Realty Capital Inc. (“Broadmark Realty,” “Company”, or “Successor”) is an internally managed commercial real estate finance company that offers short-term, first deed of trust loans, secured by real estate to fund the construction and development of, or investment in, residential or commercial properties. Broadmark Realty’s objective to preserve and protect shareholder capital while producing attractive risk-adjusted returns primarily through dividends generated from current income from its loan portfolio. Broadmark Realty operates in select states that it believes to have favorable demographic trends, and those which provide a more efficient and quicker access to collateral in the event of borrower default. On November 14, 2019 (the “Closing Date”), Broadmark Realty Capital Inc., a Maryland corporation (formerly named Trinity Sub Inc.) (“Broadmark Realty”), consummated a business combination (the “Business Combination”) pursuant to an Agreement and Plan of Merger, dated August 9, 2019 (the “Merger Agreement”), by and among the Company, Trinity, Trinity Merger Sub I, Inc. (“Merger Sub I”), Trinity Merger Sub II, LLC (“Merger Sub II” and together with Trinity and Merger Sub I, the “Trinity Parties”), PBRELF I, LLC (“PBRELF”), BRELF II, LLC (“BRELF II”), BRELF III, LLC (“BRELF III”), BRELF IV, LLC (“BRELF IV”) and, together with PBRELF, BRELF II and BRELF III, the “Predecessor Companies” and each a “Predecessor Company”), Pyatt Broadmark Management, LLC (“MgCo I”), Broadmark Real Estate Management II, LLC (“MgCo II”), Broadmark Real Estate Management III, LLC (“MgCo III”), and Broadmark Real Estate Management IV, LLC (“MgCo IV” and, together with MgCo I, MgCo II and MgCo III, the “Predecessor Management Companies” and each a “Predecessor Management Company,” and the Predecessor Management Companies, together with the Predecessor Companies and their subsidiaries, the “Predecessor Company Group”). Pursuant to the terms and subject to the conditions set forth in the Merger Agreement, (i) Merger Sub I merged with and into Trinity, with Trinity being the surviving entity of such merger (the “Trinity Merger”), (ii) immediately following the Trinity Merger, each of the Predecessor Companies merged with and into Merger Sub II, with Merger Sub II being the surviving entity of such merger (the “Company Merger”), and (iii) immediately following the Company Merger, each of the Predecessor Management Companies merged with and into Trinity, with Trinity being the surviving entity of such merger (the “Management Company Merger” and, together with the Trinity Merger and the Company Merger, the “Mergers”). As a result of the Mergers, Merger Sub II and Trinity became wholly owned subsidiaries of Broadmark Realty. The consolidated subsidiaries of Broadmark Realty after the Business Combination include BRMK Lending, LLC, BRMK Management, Corp., and Broadmark Private REIT Management, LLC. BRMK Lending originates short-term, first position loans secured by deeds of trust on real estate. BRMK Management, Corp. (“Manager”) manages the underwriting, closing, servicing and disposition of mortgage notes, and performs all general and administrative duties. Broadmark Private REIT Management, LLC (“Private Manager”) was designed to manage the newly organized Broadmark Private REIT, LLC (“Private REIT”), an unconsolidated affiliate of the Company, that primarily participates in loans originated, underwritten and serviced by a subsidiary of Broadmark Realty. Broadmark Realty intends to elect to be taxed as a real estate investment trust (“REIT”) for U.S. federal income tax purposes commencing with the tax period ending December 31, 2019. 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 distributes at least 90% of its REIT taxable income to its stockholders by prescribed dates and complies with various other requirements. The Company 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. Broadmark Realty has two TRSs being the Manager and Private Manager, respectively. Unless the context otherwise requires, references to “Broadmark Realty”, the “Company”, “we”, “us” and “our” in the remainder of this report refer to Broadmark Realty and its consolidated subsidiaries after the Business Combination and refer to the Predecessor Company Group for periods prior to the Business Combination.

Summary of significant accounti

Summary of significant accounting policies	3 Months Ended
	Mar. 31, 2020
Summary of significant accounting policies
Summary of significant accounting policies	Note 2 - Summary of significant accounting policies Basis of Presentation For periods prior to November 15, 2019, the accompanying consolidated financial statements do not represent the financial position and results of operations of one controlling legal entity, but rather a combination of the historical results of the Predecessor Company Group, which was under common management. Therefore, any reference herein to the Predecessor financial statements is made on a combined basis. For periods from November 15, 2019 on, the accompanying consolidated financial statements represent the consolidated financial statements of the Company, beginning with BRELF II as the accounting acquirer and successor entity. In addition, as a result of the Business Combination, the consolidated financial statements for periods from November 15, 2019 on, are presented on a new basis of accounting pursuant to Accounting Standards Codification ("ASC") 805, Business Combinations (refer to Note 3) to reflect BRELF II acquiring the other entities within the Predecessor Company Group and Trinity in the successor period. The financial information presented in the accompanying unaudited condensed consolidated financial statements has been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and Article 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. In the opinion of management, the accompanying unaudited condensed consolidated financial statements and notes include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the condensed consolidated financial position, results of operations and cash flows for the periods presented. These unaudited condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and notes thereto for the year ended December 31, 2019 included in the Company’s Annual Report on Form 10-K filed on March 16, 2020 with the SEC (the “Annual Report”). The results of the three months ended March 31, 2020 are not necessarily indicative of the results to be expected for the year ending December 31, 2020, for other interim periods or future years. The presentation of the Predecessor period has been conformed to the current period's presentation for the purposes of these consolidated financial statements. Principles of Consolidation For Predecessor period, all intra-entity accounts, balances and transactions have been eliminated in the preparation of the unaudited condensed consolidated financial statements. Beginning November 15, 2019, all significant intercompany accounts, balances and transactions have been eliminated in 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. As of March 31, 2020, Broadmark Realty is not the primary beneficiary of and therefore, does not consolidate any VIEs. Risks and Uncertainties In the normal course of business, the Company encounters one primary type of economic risk in the form of credit risk. Credit risk is the risk of default on the Company's investment in mortgage notes receivable resulting from a borrower’s inability or unwillingness to make contractually required payments. The Company believes that the carrying values of its investments reasonably consider this credit risk. In addition, the Company is subject to significant tax risks. If the Company were to fail to qualify as a REIT in any taxable year, the Company would be subject to U.S. federal corporate income tax, which could be material. Use of Estimates The preparation of the unaudited condensed 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 fair value of financial instruments, such as impaired loans and real property, identified intangibles, and warrant liabilities. Accordingly, actual results could differ from those estimates. Reportable Segments The Company operates the business as one reportable segment. BALANCE SHEET MEASUREMENT Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of 90 days or less at the date of purchase to be cash equivalents. The Company has a cash management sweep account repurchase agreement whereby its bank nightly sweeps cash in excess of $750,000, sells the Company specific U.S. Government Agency securities and then repurchases them the next day. The Company maintains its cash and cash equivalents with financial institutions. At times, such amounts may exceed federally insured limits. As of March 31, 2020 and December 31, 2019, the uninsured cash and cash equivalents balance was $256.9 million and $236.7 million, respectively. There were no restrictions on cash at March 31, 2020 or December 31, 2019. 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 the Company has the intent and ability to hold until maturity or payoff and are carried at amortized cost, net of allowance for loan losses, interest reserve, construction holdbacks and deferred origination and extension fees. Mortgage notes receivable that are in default are deemed to be impaired. All of the Company's loans are considered collateral dependent, and therefore, impaired loans are evaluated for impairment based on the fair value of the collateral less costs to sell. Deferred income represents the amount of the Company's origination and amendment or extension fees that have been deferred and will be recognized in income over the contractual maturity of the underlying loan. Participation in mortgage notes receivable is evaluated for achievement of the characteristics of participating interest per ASC 860 Transfers and Servicing . If the sale of a participation has all of the characteristics of a participating interest, it achieves sale accounting and the mortgage notes receivable is presented net of the participating interest. If the sale of a participation does not have all of the characteristics of a participating interest, it does not achieve sale accounting and is treated as a secured borrowing. As of March 31, 2020, all participation in mortgage notes receivable purchased by the Private REIT have achieved sale accounting and have been derecognized from the unaudited condensed consolidated balance sheet. Real property Real property owned by the Company consists of real estate acquired in settlement of loans. Real estate acquired through foreclosure or deed in lieu of foreclosure is recorded at fair market value at the time of acquisition, which generally approximates the carrying value of the loan secured by such property. Costs related to acquisition, development, construction and improvements are capitalized. Expenditures for repairs and maintenance are charged to expense when incurred. At March 31, 2020 and December 31, 2019, real properties owned by the Company consists of real estate acquired as a result of foreclosure proceedings on one and two non-performing loans, respectively. Goodwill Goodwill represents the excess of the consideration paid over the fair value of net assets acquired in connection with the Business Combination in November 2019. Goodwill is not amortized, but rather tested for impairment annually or more frequently if events or changes in circumstances indicate potential impairment. In testing goodwill for impairment, the Company follows ASC 350, Intangibles—Goodwill and Other , which permits a qualitative assessment of whether it is more likely than not that the fair value of a reporting unit is less than its carrying value including goodwill. If the qualitative assessment determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying value including goodwill, then no impairment is determined to exist for the reporting unit. However, if the qualitative assessment determines that it is more likely than not that the fair value of the reporting unit is less than its carrying value including goodwill, the fair value of that reporting units is compared with its carrying value, including goodwill. If the carrying value of a reporting unit exceeds its fair value, goodwill is considered impaired with the impairment loss equal to the amount by which the carrying value of the goodwill exceeds the implied fair value of that goodwill. Intangible Assets As a result of the Business Combination in November 2019, the Company identified intangible assets in the form of customer relationships. The Company recorded the intangible assets at fair value at the acquisition date and is amortizing the value of finite lived intangibles into expense over the expected useful life. The Company’s intangible assets have estimated useful lives of three years. Fixed Assets Fixed assets, which are included in other assets in the accompanying unaudited condensed 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 is recorded on the straight-line basis over the estimated useful life of the assets, which ranges from three to seven years. Leases In connection with the Business Combination, the Company entered into an arrangement to sublease an operating lease and, based on the guidance in ASC Topic 842, recorded a right-of-use asset and a lease liability in the amount of $0.4 million, representing the present value of the remaining payments under the lease discounted based on the Company’s incremental borrowing rate as of November 14, 2019. The amount is not significant to the consolidated balance sheets. Other Assets Other assets primarily consist of prepaid insurance, right-of-use asset and other operating receivables. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses primarily consist of accruals for payments of legal fees, audit fees, lease liabilities, warrant liabilities and other operating payables. INCOME RECOGNITION Interest Income Interest income on mortgage notes receivable is accrued based on contractual rates applied to the principal balance outstanding, unless there is a minimum interest provision in the mortgage note. Many construction loans provide for minimum interest provisions, under which the contractual rate applies to between 50% and 70% of the face amount of the note until the actual outstanding principal exceeds the minimum threshold. Income recognition is suspended when a loan is designated non-performing and resumes only when the suspended loan becomes contractually current and performance is demonstrated to have resumed, which generally requires consecutive cash payments accompanied by a credit analysis that supports an ability to pay in accordance with the terms of the loan. The accrual of interest is discontinued when management believes, after considering collection efforts and other factors, the amount ultimately to be collected will be insufficient to cover the additional interest payments. Interest previously accrued may be reversed at that time, and such reversal offset against interest income in the consolidated statement of income. Fee Income The Company collects loan origination fees in conjunction with origination. The Successor Company defers and amortizes loan origination fees and direct loan origination costs over the contractual terms of the loans. The Predecessor Companies did not defer origination fees or costs and, rather, recorded origination fees and costs at the time of origination due to the short-term nature of the loans, the difference is not considered significant. In addition, the Company charges amendment or extension fees in conjunction with modification of the terms of its existing loans. Consistent with origination fees, the Successor Company defers and amortizes loan amendment and extension fees over the revised contractual term and the Predecessor did not defer and amortize such fees. The Company charges inspection fees, which the Company uses to hire independent inspectors to report on the status of construction projects. These fees are earned and recognized upon each construction draw request. 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. In addition, the Company charges late fees on borrower payments. The Company monitors its outstanding interest and fees receivables and, based on historical performance, generally writes off the balance after a receivable is 60 days past due. Impairment of Loans The Company designates loans as non-performing at such time as (i) the borrower fails to make the required monthly interest-only loan payments; (ii) the loan has a maturity default; or (iii) in the opinion of management, it is probable the Company will be unable to collect all amounts due according to the contractual terms of the loan. Loans are charged off to the allowance for loan losses when the contractual amount is no longer realizable. The allowance for loan losses reflects management’s estimate of loan losses inherent in the loan portfolio as of the balance sheet date. The allowance is increased or decreased by recording the loan loss provision or recovery in the Company’s consolidated statements of income and is decreased by charge-offs when losses are confirmed through the receipt of assets, such as in a pre-foreclosure sale or upon ownership control of the underlying collateral in full satisfaction of the loan upon foreclosure or when significant collection efforts have ceased. The allowance for loan losses is determined on an asset-specific basis. The asset-specific allowance relates to estimated losses on individual impaired loans. The Company considers a loan to be impaired when, based upon current information and events, it believes that it is probable that the Company will be unable to collect all amounts due under the contractual terms of the loan agreement. This assessment is made on a monthly basis on factors such as payment status, lien position, borrower financial resources and investment collateral, collateral type, project economics and geographical location as well as national and regional economic factors. An allowance is established for an impaired loan when the estimated fair value of the collateral is lower than the carrying value of that loan. For collateral dependent impaired loans, impairment is measured using the estimated fair value of collateral less the estimated cost to sell in comparison to the carrying value. Valuations are performed or obtained at the time a loan is determined to be impaired and designated non-performing, and they are updated if circumstances indicate that a significant change in value has occurred. Given the short term nature of its loans, the Company evaluates the most recent external “as is” 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. As of March 31, 2020, all of the Company's allowance for loan losses represents an asset-specific allowance. EXPENSE RECOGNITION Operating Expenses Operating expenses are accrued as the expenses are incurred. General and administrative expenses primarily consist of legal, audit, insurance, excise taxes and amortization of intangible assets. For the three months ended March 31, 2019, commissions paid to a related party of $1.3 million are included in general and administrative expenses. Share‑Based Payments The Company follows the accounting guidance for share-based payments which requires the measurement and recognition of compensation expense for all stock-based awards made to employees and non-employee directors. Awards are issued under the Broadmark Realty Capital Inc. 2019 Stock Incentive Plan. For awards made to the Company’s employees and directors, the Company initially values restricted stock units based on the grant date closing price of the Company’s common stock. For awards with periodic vesting, the Company recognizes the related 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 value of the award that has vested through that date. The Company accounts for forfeitures prospectively as they occur. If there are any modifications or cancellations of the underlying unvested share-based awards, the Company may be required to accelerate, increase or cancel any remaining unrecognized or previously recorded stock-based compensation expense. Profit Interests (Predecessor) The Predecessor Management Companies’ profits interests were accounted for as share-based compensation under ASC 718 Compensation-Stock Compensation. The Predecessor Management Companies’ expensed the fair value of profits interests granted to its employees and directors over the period each award vests. Compensation cost was measured using the Black-Scholes model. All profits interests vested at the time of the Business Combination. Income Taxes (Successor) The Company intends to elect 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, the Company generally is not subject to U.S. federal income taxes on net income it distributes to its shareholders. The Company intends to make timely distributions sufficient to satisfy the annual distribution requirements. If the Company fails to qualify as a REIT in any taxable year, the Company will be subject to U.S. federal income tax on its taxable income at regulator corporate tax rates. Even if the Company qualifies for taxation as a REIT, the Company may be subject to certain state and local taxes on its income and property and U.S. federal income and excise taxes on its undistributed income. Income Taxes (Predecessor) The Predecessor Companies were taxed as partnerships and REITs under provisions of the Code. As such, the tax attributes of the partnerships are included in the individual tax returns of its members for partnerships and not for the Predecessor Company Group and the REIT entities met the qualifications to be taxed as REITs. Accordingly, the accompanying unaudited condensed consolidated statement of income for the three months ended March 31, 2019 includes no provision for income taxes for the Predecessor Company Group. Earnings per Share ASC 260, Earnings Per Share (“ASC 260”) requires the use of the two-class method of computing earnings per share for all periods presented for each class of common stock and participating security as if all earnings for the period had been distributed. Under the two-class method, net income is first reduced for dividends declared on all classes of securities to arrive at undistributed earnings. During periods of net losses, the net loss is reduced for dividends declared on participating securities only if the security has the right to participate in the earnings of the Company and an objectively determinable contractual obligation to share in net losses of the Company. The remaining earnings are allocated to common stockholders and participating securities to the extent that each security shares in earnings as if all of the earnings for the period had been distributed. Each total is then divided by the applicable weighted average number of common shares outstanding during the period to arrive at basic earnings per share. For the diluted earnings, the denominator includes all outstanding shares of common stock and all potential shares of common stock assumed issued if they are dilutive. For purposes of the Predecessor period which includes the financial results of the Predecessor Company Group, the Company determined that earnings per unit would not be meaningful to the users of this filing, given the different unitholders and members’ equity structures of each individual entity in the Predecessor Company Group. Recent Accounting Pronouncements As an emerging growth company, the Jumpstart Our Business Startups (JOBS) Act permits the Company an extended transition period for complying with new or revised accounting standards affecting public companies. The Company has elected to use this extended transition period and adopt certain new accounting standards on the private company timeline, which means that the Company's financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards on a non-delayed basis. In June 2016, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update ASU 2016‑13, Financial Instruments—Credit Losses (Topic 326), and in 2019 issued ASU 2019‑04, which provides codification improvements, and ASU 2019‑05, which provides targeted transition relief for entities adopting ASU 2016‑13. The financial instruments-credit losses guidance replaces the incurred loss model with an expected loss model, which is referred to as the current expected credit loss (CECL) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables and held-to maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in certain leases recognized by a lessor. In addition, the amendments in this update require that credit losses be presented as an allowance rather than as a write-down on available-for-sale debt securities. The Company has formed a CECL committee that is assessing data and system needs in order to evaluate the impact of adopting the new guidance. The Company expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the Company adopts the standard. At this time, the impact on the Company’s consolidated financial statements is being evaluated. The Company is required to adopt the standard on or before the year beginning January 1, 2023. In January 2017, the FASB issued ASU No. 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment," which simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit's goodwill with the carrying amount of that goodwill. Under the amendments in ASU No. 2017-04, an entity should recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The updated guidance requires a prospective adoption. The Company adopted the standard on January 1, 2020 and there was no material impact on the Company’s unaudited condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), which (1) adds incremental requirements for entities to disclose (a) the amount of total gains or losses for the period recognized in other comprehensive income that is attributable to fair value changes in assets and liabilities held as of the balance sheet date and categorized within Level 3 of the fair value hierarchy (b) the range and weighted average used to develop significant unobservable inputs and (c) how the weighted average was calculated for fair value measurements categorized within Level of the fair value hierarchy and (ii) eliminates disclosure requirements for (a) transfers between Level 1 and Level 2 and (b) valuation processes for Level 3 fair value measurements. The Company adopted the standard on January 1, 2020 and there was no material impact on the Company’s unaudited condensed consolidated financial statements. In November 2019, the FASB issued ASU No. 2019‑10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates: January 1, 2023. The update finalized various effective date delays for the Company as an Emerging Growth Company.

Business Combination

Business Combination	3 Months Ended
	Mar. 31, 2020
Business Combination
Business Combination	Note 3 – Business Combination As discussed in Note 1, the Company entered into the Merger Agreement with Trinity, the Trinity Parties, the Predecessor Companies and the Predecessor Management Companies. The Business Combination was accounted for in accordance with ASC 805, Business Combinations . The Company determined that BRELF II was the accounting acquirer. As such, the Business Combination culminated in two steps: the merger of the Trinity Parties with and into BRELF II as a recapitalization and simultaneous capital issuance, and the acquisition of 100% of the remaining entities within the Predecessor Company Group by BRELF II. In accordance with ASC 805, the merger of the Trinity Parties into BRELF II was accounted for as a recapitalization and is reflected as the issuance of shares for cash. The acquisition of the remaining entities within the Predecessor Company Group by BRELF II was accounted for as a business combination in accordance with ASC 805 using the acquisition method of accounting. Cash proceeds from the recapitalization with Trinity Merger Sub I, Inc. were $327.1 million, partially offset by the consent fee paid to holders of the Company’s warrants to purchase one-fourth (1/4 th ) of one share of our common stock at an exercise price of $2.875 per warrant (the “Public Warrants”) in the aggregate amount of $66.7 million, for net proceeds of $260.4 million. The cash proceeds from the recapitalization with Trinity Merger Sub I, Inc. were used, in part, to pay cash consideration for the acquisition of the Predecessor Company Group and transaction costs (as further described below), leaving approximately $146.9 million remaining. Separately, the cash and equity consideration transferred per the Merger Agreement was allocated between the legal amounts issued for the recapitalization of BRELF II and the cash and equity issued for the acquisition of the Predecessor Company Group. Given that the Merger Agreement was negotiated at arm’s length and based on the fair value of the entities, the legal consideration best depicted the relative fair value of separating the acquisitions from the recapitalization. The amount of common stock issued in the transaction that was attributable to the recapitalization of BRELF II was $495.5 million, along with $12.7 million of transaction costs, which were recorded as operating expenses and were settled in cash of $11.3 million and common stock of $1.4 million. Total consideration allocated to the Business Combination under ASC 805 is $581.8 million, which was measured at its acquisition date fair value, consisting of $102.2 million in cash and $479.6 million of the Company common stock. Such amounts are inclusive of seller-transaction costs of $13.5 million, settled by the acquirer at closing in cash of $11.9 million and common stock of $1.6 million. The purchase price allocation of assets acquired, and liabilities assumed have been recorded at their fair values as of the closing of November 14, 2019, the date of acquisition. The difference between the fair value of net assets acquired, including the value of intangible assets acquired, and the consideration was recorded as goodwill. The fair values of assets acquired and liabilities assumed by BRELF II on November 14, 2019 are as follows: Consideration paid: $ (in thousands) Cash $ 102,245 Common stock 479,619 Total consideration paid $ 581,864 Assets acquired: Cash and cash equivalents 88,505 Investment in real property 8,413 Mortgage notes receivable 344,837 Interest and fees receivable 2,743 Intangible assets 1,000 Other assets 174 Total Assets 445,672 Liabilities assumed: Accounts payable and accrued liability 205 Other liabilities 568 Total Liabilities 773 Net assets acquired 444,899 Goodwill $ 136,965 During the three months ended March 31, 2020, based on additional information obtained about facts and circumstances that existed as of November 14, 2019, the Company 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. The purchase price for the acquisition was determined based on the Company’s expectations of future earnings and cash flows, resulting in the recognition of goodwill. Goodwill predominantly relates to the value of the assembled workforce and intangible assets that do not qualify for separate recognition at the time of the acquisition. Purchased goodwill is deductible for income tax purposes over 15 years. The fair value of the customer relationships was determined using the replacement cost approach. The cost provides a systematic framework for estimating the value of the intangible asset based on the economic principle of substitution. Under this approach, value is estimated by developing the cost to either replace or reproduce (replicate) the asset as if new. The preliminary useful lives for customer relationships were determined based upon the remaining useful economic lives of the assets that are expected to contribute to future cash flows and approximates between two to five years. Amortization expense is recorded on a straight-line method. See Note 6 for further information on the estimated useful lives and amortization related to the acquired intangible assets. As described above, the Company incurred a total of $26.2 million of transaction-related costs for both the Business Combination and the recapitalization of BRELF II, of which $25.8 million was incurred and expensed in the predecessor period and $0.4 million was incurred and expensed in the successor period. Transaction-related expenses are comprised primarily of transaction fees, including legal, finance, consulting, professional fees and other third-party costs. These amounts were recorded as operating expenses in the consolidated statements of income in the periods incurred. At the closing of the transaction in the successor period, the acquirer directly paid (or repaid to the sellers) the amounts owed for such expenses, settling them in a combination of cash and equity. From the perspective of the Successor entity, the settlement of these amounts by the acquirer at closing were allocated between purchase price for the business combination and recapitalization of BRELF II, using a methodology consistent with the allocation of the overall consideration transferred. Included within the transaction-related expenses referred to above, is a termination fee of $10.0 million related to the termination of certain referral agreements the Predecessor Management Companies had in place with a related entity, which settled in $7.0 million of cash and $3.0 million of the Company common stock at closing. Supplemental pro forma financial information When giving effect to the Business Combination as if it closed on January 1, 2019, there are no material differences between historical revenue and earnings of the Company and results on a pro forma basis, except for the timing of transaction costs and amortization expense related to intangible assets, which would have been incurred as of an earlier date. Refer to Note 6 for the future impact of estimated amortization expense related to acquired intangible assets based on the preliminary fair values and preliminary estimated useful lives.

Mortgage notes receivable

Mortgage notes receivable	3 Months Ended
	Mar. 31, 2020
Mortgage notes receivable
Mortgage notes receivable	Note 4 - Mortgage notes receivable The stated principal amount of loans receivable in the Company’s portfolio represents the Company’s interest in loans secured by first deeds of trust, security agreements or legal title to real estate located in the United States. The Company’s lending standards require that all mortgage notes receivable be first position liens and that the maximum loan to value ratio (“LTV”) be 65%, and prior to funding, all loan packages will include an appraisal by an independent qualified appraiser. 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 limits 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 face value of the loan divided by the “as-completed” 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% and the maximum amount to a single borrower may not exceed 15% of the total assets of the Company. The Company considers loan to value ratio as a credit quality indicator about the credit quality of its mortgage notes receivable. The mortgage notes receivable are recorded at their cost, which approximate their face amounts, and interest rates generally range from 10% to 13%. The mortgage notes receivable are considered to be short-term financings, with the expectation of repayment generally within 5 to 12 months. All loans require monthly interest only payments. Most loans are structured with an interest reserve holdback that covers the interest payments for most of the initial term of the loan. Once the interest reserve is depleted, borrowers are expected to make their monthly interest payment within 10 days of month end. Mortgage notes receivable are presented net of construction holdbacks, interest reserves, allowance for loans losses and deferred origination and extension fee income in the consolidated balance sheets. The construction holdback represents amounts withheld from the funding of construction loans until the Company’s management deems 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 and extension fee income represents amounts that will be recognized over the contractual life of the underlying mortgage notes receivable. A summary of information pertaining to mortgage notes receivable at March 31, 2020 and December 31, 2019 is as follows: (dollars in thousands) March 31, 2020 December 31, 2019 Total loan commitments $ 1,099,458 $ 1,101,275 Less: Construction holdbacks (1) 272,274 253,708 Interest reserves (1) 21,703 18,601 Total principal outstanding for mortgage notes, receivable 805,481 828,966 Less: Allowance for loan losses 7,182 4,096 Deferred fees 6,847 3,281 Private REIT participation (2) 8,700 - Mortgage notes receivable, net $ 782,752 $ 821,589 (1) Includes construction holdbacks of $4.5 million and interest reserves of $0.7 million on participating interests sold to the Private REIT (2) Private REIT was determined to be a voting interest entity for which the Company, through its wholly owned subsidiary acting as manager with no equity interest, does not hold a controlling interest in and does not consolidate the Private REIT. Furthermore, the Private REIT participation in loans originated by the Company meets the characteristics of a participating interest per ASC 860 and therefore, is treated as a sale of mortgage notes receivable and is derecognized from the Company’s unaudited condensed consolidated financial statements. Defaulted mortgage notes receivable Loans can be placed in default status if an interest payment is more than 30 days past due; if a note matures and the borrower fails to extend; or if the collateral becomes impaired in such a way that the ultimate collection of the note is doubtful. A loan can be removed from default status if the late interest payments are brought current; if the borrower complies with appropriate re-underwriting to extend the note; or if additional collateral is provided for the note to provide cash flow or bring the loan to collateral value ratio below 65%. The average recorded investment in defaulted and impaired loans was $82.3 and $10.6 million and for the three months ended March 31, 2020 and December 31, 2019, respectively. Non-accrual on defaulted loans and impaired loans No interest income is reported on mortgage notes receivable that are in default, unless the interest is paid in cash and collectability of all amounts due is reasonably assured. At March 31, 2020 and December 31, 2019, defaulted and impaired loans total $152.2 million and $32.9 million in principal outstanding and $145.0 and $28.8 million in mortgage notes receivable, net, respectively, and all defaulted and impaired loans were on nonaccrual status. In addition, in certain instances, where the interest reserve on a current loan has been fully depleted and the interest payment is not expected to be collected from the borrower, the Company may place a current loan on nonaccrual status and recognize interest income on a cash-basis. As of March 31, 2020, the Company’s portfolio included four current loans, totaling $31.7 million in principal outstanding, placed on nonaccrual status. The following table summarizes the activity in the allowance for loan losses for the three months ended March 31, 2020 and March 31, 2019, respectively. All of the allowance for loan losses relates to loans in default. Three Months Ended Three Months Ended (dollars in thousands) March 31, 2020 March 31, 2019 Beginning $ 4,096 $ 1,704 Provision for loan losses 3,654 (224) Charge offs (568) — Recoveries — — Ending $ 7,182 $ 1,480

Fair value measurements

Fair value measurements	3 Months Ended
	Mar. 31, 2020
Fair value measurements
Fair value measurements	Note 5 – Fair value measurements ASC 820, “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. The following table sets forth assets and liabilities measured and reported at fair value on a recurring and nonrecurring basis, as well as for which fair value is only disclosed, as of March 31, 2020 and December 31, 2019. All of these fair values are categorized as Level 3. The table also contains information about valuation methodologies and inputs used for assets that are measured at fair value and categorized within Level 3 as of March 31, 2020 and December 31, 2019. (amounts in thousands) : Valuation Unobservable Range of (dollars in thousands) March 31, 2020 December 31, 2019 technique inputs inputs Optional subscription liability (A) $ 888 $ 5,492 Valuation Model See Note 7 0 - 5 % Real property (B) 3,703 5,837 Market Comparable Market prices for similar properties adjusted for comparability 0 - 10 % Current mortgage notes receivable (C) 637,751 792,736 Market Comparable Market interest rates and collateral value 0 - 10 % Defaulted and impaired loans, net of allowance for loan losses (D) 145,001 28,853 Market Comparable Market interest rates and collateral value 0 - 10 % Total $ 787,343 $ 832,918 A) Warrant liability derivative measured at fair value on a recurring basis. B) Real estate property is measured at lower of cost or market, a non-recurring measurement of fair value. C) The carrying value of Mortgage notes receivable approximates fair value. D) For collateral dependent loans, the fair value is based on the fair value less the costs to sell the underlying property. The carrying value of the defaulted and impaired loans, net of the allowance for loan losses approximates fair value. Fair value on a recurring basis In connection with the Mergers, Trinity Merger Corp. issued $75 million of common stock, along with 7.2 million warrants and an optional subscription of up to $25 million of additional common stock (the “Optional Subscription Liability”) in a private placement transaction with certain entities affiliated with Farallon Capital Management, LLC (“Farallon”), which are described in further detail in Note 11. The Company accounts for the Optional Subscription Liability as a derivative and, in accordance with ASC 815, the Company measures at fair value on a recurring basis. The value of this warrant liability is included in accounts payable and accrued liabilities in the accompanying consolidated balance sheet. The $4.6 million decrease in value for the three months ended March 31, 2020 was recorded as other income in the accompanying unaudited condensed consolidated statement of income for that period. The Optional Subscription Liability is valued using a lattice model that primarily incorporates observable inputs such as the Company’s common stock price, exercise price term of the option and the risk-free rate, however, it also incorporates an assumption for equity volatility based on the volatility of the common stock of comparable public companies. As the result of the Company using unobservable inputs in the valuation, the Company classifies the Optional Subscription Liability as Level 3 within the fair value hierarchy. Fair value on a nonrecurring basis Investments in real properties are initially recorded at the acquisition cost less estimated costs to dispose, which approximates fair value. Upon transfer from mortgage notes receivable to investment in real estate property, the fair value less costs to sell becomes the new cost for the property. Costs related to acquisition, development, construction and improvements are capitalized. At each reporting date, the fair value of real properties is based upon the most recent independent third-party appraisals of value discounted based upon the Company’s experience with actual liquidation values. These discounts to the appraisals generally range from 0% to 10%. As the result of the Company using unobservable inputs in the valuation, the Company classifies investments in real properties as Level 3 within the fair value hierarchy. For mortgage notes receivable in default status, fair values are based on the value of the underlying collateral less the costs to sell. At each reporting date, loans in default status are evaluated based upon the most recent independent third-party appraisals of valued discounted based upon the Company’s experience with actual liquidation values. These discounts to the appraisals generally range from 0% to 10%. As the result of the Company using unobservable inputs in the valuation, the Company classifies investments in real properties as Level 3 within the fair value hierarchy. Fair value disclosure only For certain of the Company’s financial instruments, including cash equivalents, interest and fees receivable, other receivables, accounts payable, and accrued liabilities, which are classified under Level 1 within the fair value hierarchy, the carrying amounts approximate fair value due to their short-term maturities. For mortgage notes receivable in current status, fair values are based on discounted cash flows considering interest rate risk and creditworthiness of the borrower. The mortgage notes receivable are secured by first deeds of trust, security agreements or legal title to real estate located in the United States. The mortgage notes receivable generally have terms ranging between 5 and 12 months and may be extended by paying additional fees. Due to the short-term maturity of the mortgage notes receivable, a premium or discount is not relevant and carrying value approximates fair value. As a result of the use of unobservable inputs, including discount rates and third-party appraisals, the Company classifies mortgage notes receivable as Level 3 within the fair value hierarchy.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Mar. 31, 2020
Goodwill and Intangible Assets
Goodwill and Intangible Assets	Note 6 – Goodwill and Intangible Assets Goodwill All of the Company’s goodwill relates to the Business Combination. As discussed in Note 3, during the three months ended March 31, 2020, the Company recorded a measurement period adjustment to reduce the preliminary fair value of intangible assets in the form of customer relationships by $5.0 million and increased the Company’s preliminary value of goodwill by $5.0 million resulting in $137.0 million of goodwill as of March 31, 2020. As a result of this adjustment to preliminary values, $0.9 million of amortization of intangible assets recorded in 2019 was reversed during the three months ended March 31, 2020. In accordance with ASC Topic 350, the Company continuously evaluates the presence of triggering events that require an impairment test. As of March 31, 2020, the Company determined that the coronavirus pandemic (“COVID-19”) was a triggering event based on the adverse impact on the Company’s business and results of operations. Specifically, the Company noted that the COVID-19 pandemic and containment measures have contributed to, among other things, adverse impacts on the progress of construction on our borrowers’ projects, the demand for and value of commercial and residential real estate that our borrowers have developed, the creditworthiness of our borrowers and other counterparties, the capital and credit market conditions and potential delays in foreclosure proceedings. The Company performed a quantitative assessment of its goodwill based on both the market and income approach and determined that, as of March 31, 2020, the fair value of the reporting unit exceeded the carrying value and there was no goodwill impairment. The Company will continue to monitor the impact of COVID-19 and will reevaluate the fair value of the reporting unit during its annual assessment in October 2020 or earlier in the case of another triggering event. Intangible Assets All of the Company’s intangible assets, which resulted from purchase accounting for the Business Combination, relate to the value of customer relationships and the recorded amounts as of March 31, 2020 consist of the following: Acquired (dollars in thousands) Intangibles Asset Type Customer relationships $ 1,000 Less Accumulated Amortization 126 $ 874 The weighted average life remaining of the intangible assets is approximately 2.7 years. Amortization expense for the next three years, based on preliminary valuations and determinations of useful lives, is expected to be as follows: Year ended December 31, (dollars in thousands) 2020 2021 2022 Estimated future intangible amortization expense $ 251 $ 333 $ 290

Stockholders' Equity and Member

Stockholders' Equity and Members' Equity	3 Months Ended
	Mar. 31, 2020
Stockholders’ Equity and Members’ Equity
Stockholders’ Equity and Members’ Equity	Note 7 - Stockholders’ Equity and Members’ Equity Stockholders’ Equity The Company is authorized to issue 500,000,000 shares of common stock with a par value of $0.001 per share and 100,000,000 shares of preferred stock with a par value of $0.001 per share. Holders of the Company’s common stock are entitled to one vote for each share. At March 31, 2020 and December 31, 2019, there were 132,111,329 and 132,015,635 shares of common stock issued and outstanding, respectively, and no shares of preferred stock issued and outstanding. As of March 31, 2020 and December 31, 2019, there were 41.7 million Public Warrants (including 7.2 million Public Warrants issued to affiliates of Farallon Capital Management, L.L.C.), and 5.2 million warrants outstanding to acquire one share of our common stock at a price of $11.50 per share outstanding (the “Private Warrants”). In the aggregate, the Company has outstanding warrants to purchase approximately 15.6 million shares of common stock at a price of $11.50 per whole share. The liability for the Optional Subscription was $0.9 million as of March 31, 2020 and $5.5 million as of December 31, 2019 and is included in accounts payable and accrued liabilities. Descriptions of the warrants and the Optional Subscription Liability can be found in Note 7 of the Company’s unaudited condensed consolidated financial statements included in the Company’s Annual Report on Form 10-K filed on March 16, 2020 with the SEC The fair value of the Optional Subscription Liability was estimated using a lattice model in accordance with ASC 820, Fair Value, using the assumptions noted below in the following table. Expected volatility is based on the historical volatility of a peer group of public companies. The risk-free interest rate is based on the US Treasury Constant Maturity curve, commensurate with the time to expiry of warrants. As of March 31, 2020 As of December 31, 2019 Expected volatility 56.0 % 13.0 % Expected dividend yield 12.8 % 7.3 % Expected life (in years) 0.9 Risk-free interest rate 0.2 % 1.6 % Earnings per Share The Company presents both basic and diluted earnings per share (“EPS”) amounts in its consolidated financial statements. Basic EPS excludes dilution and is computed by dividing income available to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Diluted EPS reflects the maximum potential dilution that could occur from the Company’s outstanding warrants and restricted stock units. The Company considers two ways to measure dilution to earnings per share: (a) calculate the net number of shares that would be issued assuming any related proceeds are used to buy back outstanding shares (the treasury stock method), or (b) assume the gross number of shares are issued and calculate any related effects on net income available for shareholders, considering participating securities, such as certain unvested restricted stock units which are entitled to nonforfeitable dividends rights (the two-class method). For the period presented within these unaudited condensed consolidated financial statements, the two-class method was deemed to be insignificant. In accordance with U.S. GAAP, the Company's policy is to apply the more dilutive methodology upon issuance of such instruments. The table below presents the computation of basic and diluted net income per share of common stock for the three months ended March 31, 2020. Three Months Ended (amounts in thousands, except share and per share data): March 31, 2020 Basic Earnings Net income and Basic Earnings $ 27,279 Diluted Earnings Net income and Diluted Earnings $ 27,279 Number of Shares: Basic weighted-average shares of common stock outstanding 132,111,329 Shares for warrants and restricted stock units 224,986 Diluted weighted-average shares of common stock outstanding (a) 132,336,315 Earnings Per Share Attributable to common stockholders Basic $ 0.21 Diluted $ 0.21 a) The Company excludes anti-dilutive shares from calculation of weighted-average shares for diluted earnings per share. There were 15.6 million shares related to the Public and Private Warrants, which are not included in the above calculation of diluted earnings per share because in doing so they were anti-dilutive. Members’ Equity (Predecessor) Members’ Equity is presented on a consolidated basis for the Predecessor Company Group, which includes the consolidated preferred units for the Predecessor Companies and the total consolidated Class A and Class P units for the Predecessor Management Companies. The applicable Predecessor Management Company was the sole common unit holder of the Predecessor Company it managed, and, therefore all common units have been eliminated in the preparation of the consolidated Predecessor Company Group financial statements, as they represent intra-entity balances between entities within the consolidated Predecessor Company Group. Earnings Per Unit: The Company determined that earnings per unit would not be meaningful to the users of these financial statements for the Predecessor period.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2020
Income Taxes
Income Taxes	Note 8 - Income Taxes For the Successor period, BRMK Management Corp. and the Broadmark Private REIT Management LLC , subsidiaries of the Company, have elected to be treated as TRSs. Having a TRS permits the Company 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 Code and are conducted in entities which elect to be treated as taxable subsidiaries under the Code. To the extent these criteria are met, the Company will continue to maintain its qualification as a REIT. The Company generally must distribute annually at least 90% of its 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 the Company’s earnings that it distributes. To the extent that the Company satisfies this distribution requirement but distributes less than 100% of its net taxable income, the Company will be subject to U.S. federal income tax on its undistributed taxable income. In addition, the Company will be subject to a 4% nondeductible excise tax if the actual amount that it pays out to its stockholders in a calendar year is less than a minimum amount specified under U.S. federal tax laws. The Company’s qualification as a REIT also depends on its 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 the Company qualifies as a REIT, it may be subject to certain U.S. federal income and excise taxes and state and local taxes on our income and assets. If the Company fails to maintain its qualification as a REIT for any taxable year, the Company may be subject to material penalties as well as federal, state, and local income tax on its taxable income at regular corporate rates and the Company would not be able to qualify as a REIT for the subsequent four full taxable years. As of March 31, 2020, the Company was in compliance with all REIT requirements. Based on the Company’s evaluation, it was concluded that there are no significant uncertain tax positions requiring recognition in the Company’s unaudited condensed 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 these unaudited condensed consolidated financial statements. The state and local tax jurisdictions for which the Company is subject to tax-filing obligations recognize the Company’s status as a REIT, and therefore, the Company generally does not pay income tax in such jurisdictions. The Company may, however, be subject to certain minimum state and local tax filing fees as well as certain excise or business taxes. The Company’s TRS is subject to federal, state and local taxes.

Equity Incentive Plan

Equity Incentive Plan	3 Months Ended
	Mar. 31, 2020
Equity Incentive Plan
Equity Incentive Plan	Note 9 - Equity Incentive Plan Stock Incentive Plan On November 14, 2019, the Company established the Broadmark Realty 2019 Stock Incentive Plan (the “Plan”), which 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 the Company. The Plan is administered by the compensation committee of the Company’s board of directors. As of March 31, 2020, 4,478,313 share awards were available to be issued under the Plan. The Company awarded 521,687 restricted stock units (RSUs) to employees and directors with grant dates during the Successor Period for financial reporting purposes. The RSUs generally vest from one to three years depending on the terms of the specific award other than one RSU grant which vested immediately. All RSUs awarded will be settled upon vesting in shares of Company common stock. If (i) the recipient becomes disabled and the recipient’s employment or service is terminated as a result, (ii) the recipient dies during the vesting period, or (iii) solely with respect to the Company’s Chief Executive Officer and Chief Financial Officer, the recipient’s employment is terminated without Cause (as defined in the Plan) in connection with or within 24 months following a Change in Control (as defined in the Plan), then the vesting of the RSUs will fully accelerate as of the date of termination of employment. Dividend equivalents will not be paid on RSUs granted to executive officers and directors until settlement of those RSUs in shares of Company common stock and these are not considered participating securities. The RSU’s granted to non-executive officer employees are considered participating or entitled to receive all dividends and other distributions paid with respect to those unvested shares of Common Stock, unless determined otherwise by the Compensation Committee. 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 table summarizes the activity related to RSUs during the three months ended March 31, 2020: Weighted Average Grant Date Fair Shares Market Value Unvested RSUs outstanding at January 1, 2020 334,928 11.08 Granted 91,065 $ 12.50 Vested — $ — Forfeited — — Unvested RSUs outstanding at March 31, 2020 425,993 $ 11.38 For the three months ended March 31, 2020, the Company recognized compensation expense related to RSUs of $0.9 million based on amortizing the fair value of the awards over the service (vesting) period. As of March 31, 2020, there was $3.6 million of net unrecognized compensation cost related to unvested stock-based compensation arrangements. This compensation is recognized on a straight-line basis with over half of the compensation expected to be expensed in the next twelve months and has a weighted-average recognition period of 1.7 years. Profits Interests and Equity Compensation (Predecessor) The Predecessor Company Group expensed the fair value of share-based compensation awards granted to its employees and directors over the period each award vests. Compensation cost was measured using the Black-Scholes model. The Predecessor Company Group expensed the fair value of restricted unit awards granted to our employees over the period each award vests. There were 150 units granted during the three months ended March 31, 2019 at $11,717 per unit, which were to vest ratably over 48 months. The fair value of restricted unit awards was equal to the fair value of the Company’s units at the date of grant. The units were valued using an internal model with market inputs available on the date of grant. The restricted units were settled as part of the Business Combination and, accordingly, no share based compensation related to the unit awards was recognized during the three months ended March 31, 2020.

Commitments and contingencies

Commitments and contingencies	3 Months Ended
	Mar. 31, 2020
Commitments and contingencies.
Commitments and contingencies	Note 10 - Commitments and contingencies The Company’s commitments and contingencies include usual obligations incurred by real estate lending companies in the normal course of business. These include interest reserves and construction holdbacks as disclosed in Note 4. In addition, on March 18, 2020, the Company signed a new ten-year lease agreement for its Seattle headquarters which is expected to commence in the first quarter of 2021 upon completion of tenant improvements. In the opinion of management, these matters will not have a material adverse effect on the Company’s financial position and results of operations. From time to time, the Company is 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, the Company does not have a potential liability related to any current legal proceeding or claim that would individually or in the aggregate materially affect its results of operations, financial condition or cash flows. Concentration Risk The Company originates primarily short-term commercial and single-family construction and land development mortgage notes receivable secured by first deeds of trust, mortgages or legal title in real property located in 13 states and the District of Columbia. The Company's loan portfolio is also concentrated within ten counties, the largest being King County, Washington, which comprises the cities of Seattle and Bellevue. As of March 31, 2020, the top ten counties make up 50.6% of the face amount of loans in the Company's total portfolio.

Related party transactions

Related party transactions	3 Months Ended
	Mar. 31, 2020
Related party transactions
Related party transactions	Note 11 - Related party transactions Private Placement with Farallon In connection with the Business Combination and concurrently with the execution of the Merger Agreement, the Company entered into certain subscription agreements with affiliates of Farallon Capital Management, L.L.C. (the “Farallon Entities”) for a private placement (the “PIPE Investment”) of the Company’s shares of common stock, pursuant to which the Company issued and sold to the Farallon Entities an aggregate of 7,174,163 shares of common stock for an aggregate purchase price of approximately $75.0 million immediately prior to the consummation of the Business Combination at a price per share equal to $10.45352229 (the “Reference Price”). In addition, pursuant to the subscription agreements, the Farallon Entities have an option to purchase up to $25.0 million of additional shares of common stock, exercisable at the Reference Price during the 365-day period following the consummation of the Business Combination. In connection with the PIPE Investment, the Company issued to the Farallon Entities an aggregate of 7,174,163 Public Warrants. The Farallon Entities received a fee for each warrant equal to the cash payable per each warrant held by unaffiliated Public Warrant holders in connection with the warrant amendment proposal approved as part of the Business Combination, in an amount equal to $1.60. In addition, the Farallon Entities are entitled to cash settle, in whole or in part, the exercise of their option to purchase up to $25.0 million of additional shares of common stock to the extent the delivery of the additional shares to the Farallon Entities would result, together with their affiliates and any other persons whose beneficial ownership of shares of common stock would be aggregated with the Farallon Entities or their affiliates for purpose of Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), in beneficial ownership in excess of 9.9% of the shares of common stock outstanding immediately after giving effect to such issuance of the shares of common stock. As a result of the PIPE Investment, the Farallon Entities own more than 5% of our outstanding common stock. The Company also provided the Farallon Entities with certain registration rights in connection with the PIPE Investment, pursuant to which we registered in December 2019 the shares of our common stock, Public Warrants and shares issuable upon exercise of the option and Public Warrants under the Securities Act.

Subsequent events

Subsequent events	3 Months Ended
	Mar. 31, 2020
Subsequent events
Subsequent events	Note 12 - Subsequent events Dividend Declaration On April 13, 2020, the Company’s board of directors declared a common stock dividend of $0.06 per share for the month of April 2020, which is payable on May 15, 2020 to stockholders of record as of April 30, 2020. Loan Portfolio Subsequent to March 31, 2020, through May 8, 2020, the Company originated and/or refinanced six mortgage notes receivable with a face amount of $6.0 million. Subsequent to March 31, 2020, through May 8, 2020, the Company had 5 loans enter default status totaling $50.5 million in principal outstanding. These loans have not shown any indications of impairment at this time. In addition, the Company partially or fully cured 6 loans in default status as March 31, 2020 totaling $4.1 million.

Summary of significant accoun_2

Summary of significant accounting policies (Policies)	3 Months Ended
	Mar. 31, 2020
Summary of significant accounting policies
Basis of Presentation	Basis of Presentation For periods prior to November 15, 2019, the accompanying consolidated financial statements do not represent the financial position and results of operations of one controlling legal entity, but rather a combination of the historical results of the Predecessor Company Group, which was under common management. Therefore, any reference herein to the Predecessor financial statements is made on a combined basis. For periods from November 15, 2019 on, the accompanying consolidated financial statements represent the consolidated financial statements of the Company, beginning with BRELF II as the accounting acquirer and successor entity. In addition, as a result of the Business Combination, the consolidated financial statements for periods from November 15, 2019 on, are presented on a new basis of accounting pursuant to Accounting Standards Codification ("ASC") 805, Business Combinations (refer to Note 3) to reflect BRELF II acquiring the other entities within the Predecessor Company Group and Trinity in the successor period. The financial information presented in the accompanying unaudited condensed consolidated financial statements has been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and Article 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. In the opinion of management, the accompanying unaudited condensed consolidated financial statements and notes include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the condensed consolidated financial position, results of operations and cash flows for the periods presented. These unaudited condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and notes thereto for the year ended December 31, 2019 included in the Company’s Annual Report on Form 10-K filed on March 16, 2020 with the SEC (the “Annual Report”). The results of the three months ended March 31, 2020 are not necessarily indicative of the results to be expected for the year ending December 31, 2020, for other interim periods or future years. The presentation of the Predecessor period has been conformed to the current period's presentation for the purposes of these consolidated financial statements.
Principles of Consolidation	Principles of Consolidation For Predecessor period, all intra-entity accounts, balances and transactions have been eliminated in the preparation of the unaudited condensed consolidated financial statements. Beginning November 15, 2019, all significant intercompany accounts, balances and transactions have been eliminated in 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. As of March 31, 2020, Broadmark Realty is not the primary beneficiary of and therefore, does not consolidate any VIEs.
Risks and Uncertainties	Risks and Uncertainties In the normal course of business, the Company encounters one primary type of economic risk in the form of credit risk. Credit risk is the risk of default on the Company's investment in mortgage notes receivable resulting from a borrower’s inability or unwillingness to make contractually required payments. The Company believes that the carrying values of its investments reasonably consider this credit risk. In addition, the Company is subject to significant tax risks. If the Company were to fail to qualify as a REIT in any taxable year, the Company would be subject to U.S. federal corporate income tax, which could be material.
Use of Estimates	Use of Estimates The preparation of the unaudited condensed 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 fair value of financial instruments, such as impaired loans and real property, identified intangibles, and warrant liabilities. Accordingly, actual results could differ from those estimates.
Reportable Segments	Reportable Segments The Company operates the business as one reportable segment.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of 90 days or less at the date of purchase to be cash equivalents. The Company has a cash management sweep account repurchase agreement whereby its bank nightly sweeps cash in excess of $750,000, sells the Company specific U.S. Government Agency securities and then repurchases them the next day. The Company maintains its cash and cash equivalents with financial institutions. At times, such amounts may exceed federally insured limits. As of March 31, 2020 and December 31, 2019, the uninsured cash and cash equivalents balance was $256.9 million and $236.7 million, respectively. There were no restrictions on cash at March 31, 2020 or December 31, 2019.
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 the Company has the intent and ability to hold until maturity or payoff and are carried at amortized cost, net of allowance for loan losses, interest reserve, construction holdbacks and deferred origination and extension fees. Mortgage notes receivable that are in default are deemed to be impaired. All of the Company's loans are considered collateral dependent, and therefore, impaired loans are evaluated for impairment based on the fair value of the collateral less costs to sell. Deferred income represents the amount of the Company's origination and amendment or extension fees that have been deferred and will be recognized in income over the contractual maturity of the underlying loan. Participation in mortgage notes receivable is evaluated for achievement of the characteristics of participating interest per ASC 860 Transfers and Servicing . If the sale of a participation has all of the characteristics of a participating interest, it achieves sale accounting and the mortgage notes receivable is presented net of the participating interest. If the sale of a participation does not have all of the characteristics of a participating interest, it does not achieve sale accounting and is treated as a secured borrowing. As of March 31, 2020, all participation in mortgage notes receivable purchased by the Private REIT have achieved sale accounting and have been derecognized from the unaudited condensed consolidated balance sheet.
Real property	Real property Real property owned by the Company consists of real estate acquired in settlement of loans. Real estate acquired through foreclosure or deed in lieu of foreclosure is recorded at fair market value at the time of acquisition, which generally approximates the carrying value of the loan secured by such property. Costs related to acquisition, development, construction and improvements are capitalized. Expenditures for repairs and maintenance are charged to expense when incurred. At March 31, 2020 and December 31, 2019, real properties owned by the Company consists of real estate acquired as a result of foreclosure proceedings on one and two non-performing loans, respectively.
Goodwill	Goodwill Goodwill represents the excess of the consideration paid over the fair value of net assets acquired in connection with the Business Combination in November 2019. Goodwill is not amortized, but rather tested for impairment annually or more frequently if events or changes in circumstances indicate potential impairment. In testing goodwill for impairment, the Company follows ASC 350, Intangibles—Goodwill and Other , which permits a qualitative assessment of whether it is more likely than not that the fair value of a reporting unit is less than its carrying value including goodwill. If the qualitative assessment determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying value including goodwill, then no impairment is determined to exist for the reporting unit. However, if the qualitative assessment determines that it is more likely than not that the fair value of the reporting unit is less than its carrying value including goodwill, the fair value of that reporting units is compared with its carrying value, including goodwill. If the carrying value of a reporting unit exceeds its fair value, goodwill is considered impaired with the impairment loss equal to the amount by which the carrying value of the goodwill exceeds the implied fair value of that goodwill.
Intangible Assets	Intangible Assets As a result of the Business Combination in November 2019, the Company identified intangible assets in the form of customer relationships. The Company recorded the intangible assets at fair value at the acquisition date and is amortizing the value of finite lived intangibles into expense over the expected useful life. The Company’s intangible assets have estimated useful lives of three years.
Fixed Assets	Fixed Assets Fixed assets, which are included in other assets in the accompanying unaudited condensed 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 is recorded on the straight-line basis over the estimated useful life of the assets, which ranges from three to seven years.
Leases	Leases In connection with the Business Combination, the Company entered into an arrangement to sublease an operating lease and, based on the guidance in ASC Topic 842, recorded a right-of-use asset and a lease liability in the amount of $0.4 million, representing the present value of the remaining payments under the lease discounted based on the Company’s incremental borrowing rate as of November 14, 2019. The amount is not significant to the consolidated balance sheets.
Other Assets	Other Assets Other assets primarily consist of prepaid insurance, right-of-use asset and other operating receivables.
Accounts Payable and Accrued Expenses	Accounts Payable and Accrued Expenses Accounts payable and accrued expenses primarily consist of accruals for payments of legal fees, audit fees, lease liabilities, warrant liabilities and other operating payables.
Interest Income	Interest Income Interest income on mortgage notes receivable is accrued based on contractual rates applied to the principal balance outstanding, unless there is a minimum interest provision in the mortgage note. Many construction loans provide for minimum interest provisions, under which the contractual rate applies to between 50% and 70% of the face amount of the note until the actual outstanding principal exceeds the minimum threshold. Income recognition is suspended when a loan is designated non-performing and resumes only when the suspended loan becomes contractually current and performance is demonstrated to have resumed, which generally requires consecutive cash payments accompanied by a credit analysis that supports an ability to pay in accordance with the terms of the loan. The accrual of interest is discontinued when management believes, after considering collection efforts and other factors, the amount ultimately to be collected will be insufficient to cover the additional interest payments. Interest previously accrued may be reversed at that time, and such reversal offset against interest income in the consolidated statement of income.
Fee Income	Fee Income The Company collects loan origination fees in conjunction with origination. The Successor Company defers and amortizes loan origination fees and direct loan origination costs over the contractual terms of the loans. The Predecessor Companies did not defer origination fees or costs and, rather, recorded origination fees and costs at the time of origination due to the short-term nature of the loans, the difference is not considered significant. In addition, the Company charges amendment or extension fees in conjunction with modification of the terms of its existing loans. Consistent with origination fees, the Successor Company defers and amortizes loan amendment and extension fees over the revised contractual term and the Predecessor did not defer and amortize such fees. The Company charges inspection fees, which the Company uses to hire independent inspectors to report on the status of construction projects. These fees are earned and recognized upon each construction draw request.
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. In addition, the Company charges late fees on borrower payments. The Company monitors its outstanding interest and fees receivables and, based on historical performance, generally writes off the balance after a receivable is 60 days past due.
Impairment of Loans	Impairment of Loans The Company designates loans as non-performing at such time as (i) the borrower fails to make the required monthly interest-only loan payments; (ii) the loan has a maturity default; or (iii) in the opinion of management, it is probable the Company will be unable to collect all amounts due according to the contractual terms of the loan. Loans are charged off to the allowance for loan losses when the contractual amount is no longer realizable. The allowance for loan losses reflects management’s estimate of loan losses inherent in the loan portfolio as of the balance sheet date. The allowance is increased or decreased by recording the loan loss provision or recovery in the Company’s consolidated statements of income and is decreased by charge-offs when losses are confirmed through the receipt of assets, such as in a pre-foreclosure sale or upon ownership control of the underlying collateral in full satisfaction of the loan upon foreclosure or when significant collection efforts have ceased. The allowance for loan losses is determined on an asset-specific basis. The asset-specific allowance relates to estimated losses on individual impaired loans. The Company considers a loan to be impaired when, based upon current information and events, it believes that it is probable that the Company will be unable to collect all amounts due under the contractual terms of the loan agreement. This assessment is made on a monthly basis on factors such as payment status, lien position, borrower financial resources and investment collateral, collateral type, project economics and geographical location as well as national and regional economic factors. An allowance is established for an impaired loan when the estimated fair value of the collateral is lower than the carrying value of that loan. For collateral dependent impaired loans, impairment is measured using the estimated fair value of collateral less the estimated cost to sell in comparison to the carrying value. Valuations are performed or obtained at the time a loan is determined to be impaired and designated non-performing, and they are updated if circumstances indicate that a significant change in value has occurred. Given the short term nature of its loans, the Company evaluates the most recent external “as is” 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. As of March 31, 2020, all of the Company's allowance for loan losses represents an asset-specific allowance.
Operating Expenses	Operating Expenses Operating expenses are accrued as the expenses are incurred. General and administrative expenses primarily consist of legal, audit, insurance, excise taxes and amortization of intangible assets. For the three months ended March 31, 2019, commissions paid to a related party of $1.3 million are included in general and administrative expenses.
Share‑Based Payments	Share‑Based Payments The Company follows the accounting guidance for share-based payments which requires the measurement and recognition of compensation expense for all stock-based awards made to employees and non-employee directors. Awards are issued under the Broadmark Realty Capital Inc. 2019 Stock Incentive Plan. For awards made to the Company’s employees and directors, the Company initially values restricted stock units based on the grant date closing price of the Company’s common stock. For awards with periodic vesting, the Company recognizes the related 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 value of the award that has vested through that date. The Company accounts for forfeitures prospectively as they occur. If there are any modifications or cancellations of the underlying unvested share-based awards, the Company may be required to accelerate, increase or cancel any remaining unrecognized or previously recorded stock-based compensation expense.
Profit Interests (Predecessor)	Profit Interests (Predecessor) The Predecessor Management Companies’ profits interests were accounted for as share-based compensation under ASC 718 Compensation-Stock Compensation. The Predecessor Management Companies’ expensed the fair value of profits interests granted to its employees and directors over the period each award vests. Compensation cost was measured using the Black-Scholes model. All profits interests vested at the time of the Business Combination.
Income Taxes	Income Taxes (Successor) The Company intends to elect 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, the Company generally is not subject to U.S. federal income taxes on net income it distributes to its shareholders. The Company intends to make timely distributions sufficient to satisfy the annual distribution requirements. If the Company fails to qualify as a REIT in any taxable year, the Company will be subject to U.S. federal income tax on its taxable income at regulator corporate tax rates. Even if the Company qualifies for taxation as a REIT, the Company may be subject to certain state and local taxes on its income and property and U.S. federal income and excise taxes on its undistributed income. Income Taxes (Predecessor) The Predecessor Companies were taxed as partnerships and REITs under provisions of the Code. As such, the tax attributes of the partnerships are included in the individual tax returns of its members for partnerships and not for the Predecessor Company Group and the REIT entities met the qualifications to be taxed as REITs. Accordingly, the accompanying unaudited condensed consolidated statement of income for the three months ended March 31, 2019 includes no provision for income taxes for the Predecessor Company Group.
Earnings per Share	Earnings per Share ASC 260, Earnings Per Share (“ASC 260”) requires the use of the two-class method of computing earnings per share for all periods presented for each class of common stock and participating security as if all earnings for the period had been distributed. Under the two-class method, net income is first reduced for dividends declared on all classes of securities to arrive at undistributed earnings. During periods of net losses, the net loss is reduced for dividends declared on participating securities only if the security has the right to participate in the earnings of the Company and an objectively determinable contractual obligation to share in net losses of the Company. The remaining earnings are allocated to common stockholders and participating securities to the extent that each security shares in earnings as if all of the earnings for the period had been distributed. Each total is then divided by the applicable weighted average number of common shares outstanding during the period to arrive at basic earnings per share. For the diluted earnings, the denominator includes all outstanding shares of common stock and all potential shares of common stock assumed issued if they are dilutive. For purposes of the Predecessor period which includes the financial results of the Predecessor Company Group, the Company determined that earnings per unit would not be meaningful to the users of this filing, given the different unitholders and members’ equity structures of each individual entity in the Predecessor Company Group.
Recent Accounting Pronouncements	Recent Accounting Pronouncements As an emerging growth company, the Jumpstart Our Business Startups (JOBS) Act permits the Company an extended transition period for complying with new or revised accounting standards affecting public companies. The Company has elected to use this extended transition period and adopt certain new accounting standards on the private company timeline, which means that the Company's financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards on a non-delayed basis. In June 2016, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update ASU 2016‑13, Financial Instruments—Credit Losses (Topic 326), and in 2019 issued ASU 2019‑04, which provides codification improvements, and ASU 2019‑05, which provides targeted transition relief for entities adopting ASU 2016‑13. The financial instruments-credit losses guidance replaces the incurred loss model with an expected loss model, which is referred to as the current expected credit loss (CECL) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables and held-to maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in certain leases recognized by a lessor. In addition, the amendments in this update require that credit losses be presented as an allowance rather than as a write-down on available-for-sale debt securities. The Company has formed a CECL committee that is assessing data and system needs in order to evaluate the impact of adopting the new guidance. The Company expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the Company adopts the standard. At this time, the impact on the Company’s consolidated financial statements is being evaluated. The Company is required to adopt the standard on or before the year beginning January 1, 2023. In January 2017, the FASB issued ASU No. 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment," which simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit's goodwill with the carrying amount of that goodwill. Under the amendments in ASU No. 2017-04, an entity should recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The updated guidance requires a prospective adoption. The Company adopted the standard on January 1, 2020 and there was no material impact on the Company’s unaudited condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), which (1) adds incremental requirements for entities to disclose (a) the amount of total gains or losses for the period recognized in other comprehensive income that is attributable to fair value changes in assets and liabilities held as of the balance sheet date and categorized within Level 3 of the fair value hierarchy (b) the range and weighted average used to develop significant unobservable inputs and (c) how the weighted average was calculated for fair value measurements categorized within Level of the fair value hierarchy and (ii) eliminates disclosure requirements for (a) transfers between Level 1 and Level 2 and (b) valuation processes for Level 3 fair value measurements. The Company adopted the standard on January 1, 2020 and there was no material impact on the Company’s unaudited condensed consolidated financial statements. In November 2019, the FASB issued ASU No. 2019‑10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates: January 1, 2023. The update finalized various effective date delays for the Company as an Emerging Growth Company.

Business Combination (Tables)

Business Combination (Tables)	3 Months Ended
	Mar. 31, 2020
Business Combination
Summary of preliminary fair values of assets acquired and liabilities assumed by BRELF II	Consideration paid: $ (in thousands) Cash $ 102,245 Common stock 479,619 Total consideration paid $ 581,864 Assets acquired: Cash and cash equivalents 88,505 Investment in real property 8,413 Mortgage notes receivable 344,837 Interest and fees receivable 2,743 Intangible assets 1,000 Other assets 174 Total Assets 445,672 Liabilities assumed: Accounts payable and accrued liability 205 Other liabilities 568 Total Liabilities 773 Net assets acquired 444,899 Goodwill $ 136,965

Mortgage notes receivable (Tabl

Mortgage notes receivable (Tables)	3 Months Ended
	Mar. 31, 2020
Mortgage notes receivable
Schedule of mortgage notes receivable	(dollars in thousands) March 31, 2020 December 31, 2019 Total loan commitments $ 1,099,458 $ 1,101,275 Less: Construction holdbacks (1) 272,274 253,708 Interest reserves (1) 21,703 18,601 Total principal outstanding for mortgage notes, receivable 805,481 828,966 Less: Allowance for loan losses 7,182 4,096 Deferred fees 6,847 3,281 Private REIT participation (2) 8,700 - Mortgage notes receivable, net $ 782,752 $ 821,589 (1) Includes construction holdbacks of $4.5 million and interest reserves of $0.7 million on participating interests sold to the Private REIT (2) Private REIT was determined to be a voting interest entity for which the Company, through its wholly owned subsidiary acting as manager with no equity interest, does not hold a controlling interest in and does not consolidate the Private REIT. Furthermore, the Private REIT participation in loans originated by the Company meets the characteristics of a participating interest per ASC 860 and therefore, is treated as a sale of mortgage notes receivable and is derecognized from the Company’s unaudited condensed consolidated financial statements.
Schedule of allowance for loan losses relates to loans in default	Three Months Ended Three Months Ended (dollars in thousands) March 31, 2020 March 31, 2019 Beginning $ 4,096 $ 1,704 Provision for loan losses 3,654 (224) Charge offs (568) — Recoveries — — Ending $ 7,182 $ 1,480

Fair value measurements (Tables

Fair value measurements (Tables)	3 Months Ended
	Mar. 31, 2020
Fair value measurements
Schedule of valuation methodologies and inputs used for assets that are measured at fair value	The following table sets forth assets and liabilities measured and reported at fair value on a recurring and nonrecurring basis, as well as for which fair value is only disclosed, as of March 31, 2020 and December 31, 2019. All of these fair values are categorized as Level 3. The table also contains information about valuation methodologies and inputs used for assets that are measured at fair value and categorized within Level 3 as of March 31, 2020 and December 31, 2019. (amounts in thousands) : Valuation Unobservable Range of (dollars in thousands) March 31, 2020 December 31, 2019 technique inputs inputs Optional subscription liability (A) $ 888 $ 5,492 Valuation Model See Note 7 0 - 5 % Real property (B) 3,703 5,837 Market Comparable Market prices for similar properties adjusted for comparability 0 - 10 % Current mortgage notes receivable (C) 637,751 792,736 Market Comparable Market interest rates and collateral value 0 - 10 % Defaulted and impaired loans, net of allowance for loan losses (D) 145,001 28,853 Market Comparable Market interest rates and collateral value 0 - 10 % Total $ 787,343 $ 832,918 A) Warrant liability derivative measured at fair value on a recurring basis. B) Real estate property is measured at lower of cost or market, a non-recurring measurement of fair value. C) The carrying value of Mortgage notes receivable approximates fair value. D) For collateral dependent loans, the fair value is based on the fair value less the costs to sell the underlying property. The carrying value of the defaulted and impaired loans, net of the allowance for loan losses approximates fair value.

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2020
Goodwill and Intangible Assets
Schedule of change in net book value of intangible assets	Acquired (dollars in thousands) Intangibles Asset Type Customer relationships $ 1,000 Less Accumulated Amortization 126 $ 874
Schedule of future amortization expense	Year ended December 31, (dollars in thousands) 2020 2021 2022 Estimated future intangible amortization expense $ 251 $ 333 $ 290

Stockholders_ Equity and Member

Stockholders’ Equity and Members’ Equity (Tables)	3 Months Ended
	Mar. 31, 2020
Stockholders’ Equity and Members’ Equity
Schedule of assumptions used in estimating fair value of derivative liability	As of March 31, 2020 As of December 31, 2019 Expected volatility 56.0 % 13.0 % Expected dividend yield 12.8 % 7.3 % Expected life (in years) 0.9 Risk-free interest rate 0.2 % 1.6 %
Schedule of basic and diluted earnings per share	Three Months Ended (amounts in thousands, except share and per share data): March 31, 2020 Basic Earnings Net income and Basic Earnings $ 27,279 Diluted Earnings Net income and Diluted Earnings $ 27,279 Number of Shares: Basic weighted-average shares of common stock outstanding 132,111,329 Shares for warrants and restricted stock units 224,986 Diluted weighted-average shares of common stock outstanding (a) 132,336,315 Earnings Per Share Attributable to common stockholders Basic $ 0.21 Diluted $ 0.21 a) The Company excludes anti-dilutive shares from calculation of weighted-average shares for diluted earnings per share. There were 15.6 million shares related to the Public and Private Warrants, which are not included in the above calculation of diluted earnings per share because in doing so they were anti-dilutive.

Equity Incentive Plan (Tables)

Equity Incentive Plan (Tables)	3 Months Ended
	Mar. 31, 2020
Equity Incentive Plan
Summary of the activity related to restricted stock	Weighted Average Grant Date Fair Shares Market Value Unvested RSUs outstanding at January 1, 2020 334,928 11.08 Granted 91,065 $ 12.50 Vested — $ — Forfeited — — Unvested RSUs outstanding at March 31, 2020 425,993 $ 11.38

Organization and business (Deta

Organization and business (Details)	3 Months Ended
	Mar. 31, 2020subsidiary
Organization and business
Number of Taxable REIT Subsidiaries	2

Summary of significant accoun_3

Summary of significant accounting policies - (Details)	2 Months Ended	3 Months Ended			10 Months Ended	12 Months Ended
	Dec. 31, 2019USD ($)loan	Mar. 31, 2020USD ($)segmentloan	Mar. 31, 2019USD ($)		Nov. 14, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial Designation, Predecessor and Successor [Fixed List]	Successor	Successor	Predecessor	[1]	Predecessor	Predecessor
Number of Reportable Segments | segment		1
Threshold Sweep Account Balance		$ 750,000
Uninsured cash and cash equivalents balance	$ 236,700,000	256,900,000
Restricted cash	$ 0	$ 0
Number of non performing loans | loan	2	1
Impairment of goodwill		$ 0
Estimated Useful Lives of Intangible assets		3 years
Right-of-use asset		$ 400,000
Lease Liability		$ 400,000
Commissions paid to a related party			$ 1,300,000
Provision for income taxes			$ 0
Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Mortgage Notes Receivable Term		12 months
Estimated Useful Lives of fixed assets		7 years
Contractual Rate		70.00%
Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Mortgage Notes Receivable Term		5 months
Estimated Useful Lives of fixed assets		3 years
Contractual Rate		50.00%
[1]	Predecessor periods are combined as disclosed in Note 1.

Business Combination - Acquisit

Business Combination - Acquisition (Details) - USD ($) $ / shares in Units, $ in Thousands	Nov. 14, 2019	Dec. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	[1]	Nov. 14, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Financial Designation, Predecessor and Successor [Fixed List]		Successor	Successor	Predecessor		Predecessor	Predecessor
Number of share per warrant		1	1
Exercise price per share (in dollars per share)		$ 11.50	$ 11.50
Total consideration	$ 581,800
Settlement in cash	102,200
Settlement in common stock	479,600
Seller transaction costs	13,500
Seller transaction costs (settled in cash)	11,900
Seller transaction costs (settled in stock)	1,600
Trinity
Business Acquisition [Line Items]
Proceeds From Recapitalization	$ 327,100
Number of share per warrant	0.250					0.250
Exercise price per share (in dollars per share)	$ 2.875					$ 2.875
Consent fee paid to holders of Public Warrants	$ 66,700
Net proceeds	260,400
Remaining proceeds from recapitalization	146,900
Total consideration	581,864
Settlement in cash	102,245
Settlement in common stock	$ 479,619
BRELF II
Business Acquisition [Line Items]
Percentage of acquisition	100.00%					100.00%
Stock issued in connection with recapitalization	$ 495,500
Transaction cost settled in cash	11,300
Transaction cost settled in stock	1,400
BRELF II | Operating expense
Business Acquisition [Line Items]
Transaction costs in connection with recapitalization	$ 12,700
[1]	Predecessor periods are combined as disclosed in Note 1.

Business Combination - Fair Val

Business Combination - Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Nov. 14, 2019	Dec. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	[1]	Nov. 14, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Financial Designation, Predecessor and Successor [Fixed List]		Successor	Successor	Predecessor		Predecessor	Predecessor
Cash	$ 102,200
Common stock	479,600
Total consideration paid	581,800
Goodwill		$ 131,965	$ 136,965
Trinity
Business Acquisition [Line Items]
Cash	102,245
Common stock	479,619
Total consideration paid	581,864
Cash and cash equivalents	88,505					$ 88,505
Investment in real property	8,413					8,413
Mortgage notes receivable	344,837					344,837
Interest and fees receivable	2,743					2,743
Intangible assets	1,000					1,000
Other assets	174					174
Total Assets	445,672					445,672
Accounts payable and accrued liability	205					205
Other liabilities	568					568
Total Liabilities	773					773
Net assets acquired	444,899					444,899
Goodwill	$ 136,965					$ 136,965
[1]	Predecessor periods are combined as disclosed in Note 1.

Business Combination - Purchase

Business Combination - Purchase Consideration (Details) - USD ($) $ in Thousands	Nov. 14, 2019	Dec. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	[1]	Mar. 31, 2020	Nov. 14, 2019	Dec. 31, 2018	Mar. 31, 2020
Business Acquisition [Line Items]
Financial Designation, Predecessor and Successor [Fixed List]		Successor	Successor	Predecessor			Predecessor	Predecessor
Purchased Goodwill, Income Tax Amortization Period			15 years
Useful economic lives			3 years
Settlement made for termination of referral agreements			$ 10,000
Settlement made in the form of cash			7,000
Settlement made in the form of common stock			3,000
Customer relationships
Business Acquisition [Line Items]
Allocation of the preliminary fair value	$ 6,000		1,000			$ 1,000	$ 6,000		$ 1,000
Goodwill, Period Increase (Decrease), Total			$ 5,000
Customer relationships | Maximum
Business Acquisition [Line Items]
Useful economic lives	5 years
Customer relationships | Minimum
Business Acquisition [Line Items]
Useful economic lives	2 years
Trinity
Business Acquisition [Line Items]
Allocation of the preliminary fair value	$ 1,000						1,000
Transaction costs						$ 400	$ 25,800		$ 26,200
[1]	Predecessor periods are combined as disclosed in Note 1.

Mortgage notes receivable - Add

Mortgage notes receivable - Additional Information (Details)	2 Months Ended	3 Months Ended			10 Months Ended	12 Months Ended
	Dec. 31, 2019USD ($)	Mar. 31, 2020USD ($)loan	Mar. 31, 2019USD ($)		Nov. 14, 2019	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)
Loans and Leases Receivable Disclosure [Line Items]
Financial Designation, Predecessor and Successor [Fixed List]	Successor	Successor	Predecessor	[1]	Predecessor		Predecessor
Percentage of maximum loan to value ratio		65.00%
Percentage of maximum of amount of a single loan		10.00%
Percentage of assets of entity		15.00%
Carrying value for mortgage notes receivable	$ 821,589,000	$ 782,752,000				$ 821,589,000
Allowance for loan losses	4,096,000	$ 7,182,000	$ 1,480,000			4,096,000	$ 1,704,000
Monthly interest rate payment term		10 days
Impaired Financing Receivable, Interest Income, Cash Basis Method		$ 0
Impaired Financing Receivable, Recorded Investment	32,900,000	$ 152,200,000				32,900,000
Impaired Financing Receivable, Number Of Loans | loan		4
Impaired Financing Receivable, Unpaid Principal Balance		$ 31,700,000
Impaired Financing Receivable, Average Recorded Investment		$ 82,300,000				10,600,000
Maximum
Loans and Leases Receivable Disclosure [Line Items]
Interest rate (as a percent)		13.00%
Term of mortgage notes receivable		12 months
Minimum
Loans and Leases Receivable Disclosure [Line Items]
Interest rate (as a percent)		10.00%
Term of mortgage notes receivable		5 months
Mortgage notes receivables
Loans and Leases Receivable Disclosure [Line Items]
Impaired Financing Receivable, Recorded Investment	$ 28,800,000	$ 145,000,000				$ 28,800,000
[1]	Predecessor periods are combined as disclosed in Note 1.

Mortgage notes receivable - Inf

Mortgage notes receivable - Information pertaining to mortgage notes receivable (Details) - USD ($) $ in Thousands	2 Months Ended	3 Months Ended			10 Months Ended	12 Months Ended
	Dec. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	[1]	Nov. 14, 2019	Dec. 31, 2018
Mortgage notes receivable
Financial Designation, Predecessor and Successor [Fixed List]	Successor	Successor	Predecessor		Predecessor	Predecessor
Total loan commitments	$ 1,101,275	$ 1,099,458
Construction holdbacks	253,708	272,274
Interest reserves	18,601	21,703
Total principal outstanding for mortgage notes, receivable	828,966	805,481
Allowance for loan losses	4,096	7,182
Deferred fees	3,281	6,847
Private REIT participation		8,700
Mortgage notes receivable, net	$ 821,589	782,752
Sale Of Mortgage Notes Receivable, Construction Holdbacks		4,500
Sale Of Mortgage Notes Receivable, Interest Reserves		$ 700
[1]	Predecessor periods are combined as disclosed in Note 1.

Mortgage notes receivable - All

Mortgage notes receivable - Allowance for loan loss (Details) - USD ($) $ in Thousands	2 Months Ended	3 Months Ended			10 Months Ended	12 Months Ended
	Dec. 31, 2019	Mar. 31, 2020	Mar. 31, 2019		Nov. 14, 2019	Dec. 31, 2018
Mortgage notes receivable
Financial Designation, Predecessor and Successor [Fixed List]	Successor	Successor	Predecessor	[1]	Predecessor	Predecessor
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Financing Receivable, Allowance for Credit Loss, Beginning Balance		$ 4,096	$ 1,704		$ 1,704
Provision for loan losses		3,654	(224)
Charge offs		(568)
Financing Receivable, Allowance for Credit Loss, Ending Balance	$ 4,096	$ 7,182	$ 1,480			$ 1,704
[1]	Predecessor periods are combined as disclosed in Note 1.

Fair value measurements - Valua

Fair value measurements - Valuation Methodologies and Inputs Used for Assets Measured at Fair Value (Details) $ in Thousands	2 Months Ended	3 Months Ended			10 Months Ended	12 Months Ended
	Dec. 31, 2019USD ($)	Mar. 31, 2020USD ($)	Mar. 31, 2019	[1]	Nov. 14, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Designation, Predecessor and Successor [Fixed List]	Successor	Successor	Predecessor		Predecessor	Predecessor
Assets measured at fair value	$ 832,918	$ 787,343
Warrant Liability
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	5,492	888
Real Property
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	5,837	$ 3,703
Real Property | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range of inputs		0
Real Property | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range of inputs		10
Mortgage notes receivables
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	792,736	$ 637,751
Mortgage notes receivables | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range of inputs		0
Mortgage notes receivables | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range of inputs		10
Defaulted and Impaired Loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	$ 28,853	$ 145,001
Defaulted and Impaired Loans | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range of inputs		0
Defaulted and Impaired Loans | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range of inputs		10
Equity Volatility | Warrant Liability | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range of inputs		0
Equity Volatility | Warrant Liability | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range of inputs		5
[1]	Predecessor periods are combined as disclosed in Note 1.

Fair value measurements - Addit

Fair value measurements - Additional Information (Details) shares in Millions, $ in Millions	2 Months Ended	3 Months Ended			10 Months Ended	12 Months Ended
	Dec. 31, 2019shares	Mar. 31, 2020USD ($)shares	Mar. 31, 2019	[1]	Nov. 14, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Designation, Predecessor and Successor [Fixed List]	Successor	Successor	Predecessor		Predecessor	Predecessor
Warrants outstanding (in shares) | shares	41.7	41.7
Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Term of mortgage notes receivable		5 months
Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Term of mortgage notes receivable		12 months
Farallon PIPE Warrants
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrants outstanding (in shares) | shares	7.2	7.2
Recurring | Trinity Public Warrants
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Value of shares issued | $		$ 75
Recurring | Farallon PIPE Warrants
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrants outstanding (in shares) | shares		7.2
Purchase of additional shares of common stock | $		$ 25
Recurring | Other expense | Farallon PIPE Warrants
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Increase in warrant liability | $		$ 4.6
Non recurring | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Percentage of discounts to appraisals		0.00%
Percentage of discounts to appraisals for mortgage notes receivable		0
Non recurring | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Percentage of discounts to appraisals		10.00%
Percentage of discounts to appraisals for mortgage notes receivable		10
[1]	Predecessor periods are combined as disclosed in Note 1.

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	2 Months Ended	3 Months Ended			10 Months Ended	12 Months Ended
	Dec. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	[1]	Nov. 14, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Financial Designation, Predecessor and Successor [Fixed List]	Successor	Successor	Predecessor		Predecessor	Predecessor
Goodwill	$ 131,965	$ 136,965
Impairment of goodwill		0
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Period Increase (Decrease)		(5,000)
Goodwill, Period Increase (Decrease), Total		5,000
Goodwill		137,000
Amortization of intangible assets		900
Acquired Intangibles, Gross		1,000
Less Accumulated Amortization		126
Acquired Intangibles, Net		$ 874
Weighted average life remaining of the intangible assets		2 years 8 months 12 days
[1]	Predecessor periods are combined as disclosed in Note 1.

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Amortization (Details) - USD ($) $ in Thousands	2 Months Ended	3 Months Ended			10 Months Ended	12 Months Ended
	Dec. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	[1]	Nov. 14, 2019	Dec. 31, 2018
Goodwill and Intangible Assets
Financial Designation, Predecessor and Successor [Fixed List]	Successor	Successor	Predecessor		Predecessor	Predecessor
Estimated future intangible amortization expense
2020		$ 251
2021		333
2022		$ 290
[1]	Predecessor periods are combined as disclosed in Note 1.

Stockholders_ Equity and Memb_2

Stockholders’ Equity and Members’ Equity - Stock (Details)	2 Months Ended	3 Months Ended			10 Months Ended	12 Months Ended
	Dec. 31, 2019$ / sharesshares	Mar. 31, 2020Vote$ / sharesshares	Mar. 31, 2019	[1]	Nov. 14, 2019	Dec. 31, 2018
Stockholders’ Equity and Members’ Equity
Financial Designation, Predecessor and Successor [Fixed List]	Successor	Successor	Predecessor		Predecessor	Predecessor
Common stock shares authorized (in shares)	500,000,000	500,000,000
Common stock par value (in dollars per share) | $ / shares	$ 0.001	$ 0.001
Preferred stock shares authorized (in shares)	100,000,000	100,000,000
Preferred Stock, Par or Stated Value Per Share | $ / shares	$ 0.001	$ 0.001
Number of votes per share | Vote		1
Common stock shares issued (in shares)	132,015,635	132,111,329
Common stock shares outstanding (in shares)	132,015,635	132,111,329
Preferred stock shares issued (in shares)	0	0
Preferred stock shares outstanding (in shares)	0	0
[1]	Predecessor periods are combined as disclosed in Note 1.

Stockholders_ Equity and Memb_3

Stockholders’ Equity and Members’ Equity - Warrant (Details) - USD ($) $ / shares in Units, $ in Millions	2 Months Ended	3 Months Ended			10 Months Ended	12 Months Ended
	Dec. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	[1]	Nov. 14, 2019	Dec. 31, 2018
Class of Warrant or Right [Line Items]
Financial Designation, Predecessor and Successor [Fixed List]	Successor	Successor	Predecessor		Predecessor	Predecessor
Number of share per warrant	1	1
Warrants outstanding (in shares)	41,700,000	41,700,000
Exercise price per share (in dollars per share)	$ 11.50	$ 11.50
Trinity Public Warrants
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	15,600,000	15,600,000
Exercise price per share (in dollars per share)	$ 11.500	$ 11.500
Farallon PIPE Warrants
Class of Warrant or Right [Line Items]
Warrants outstanding (in shares)	7,200,000	7,200,000
Warrants outstanding	$ 5.5	$ 0.9
Private Placement Warrants
Class of Warrant or Right [Line Items]
Warrants outstanding (in shares)	5,200,000	5,200,000
[1]	Predecessor periods are combined as disclosed in Note 1.

Stockholders_ Equity and Memb_4

Stockholders’ Equity and Members’ Equity - Optional Subscription (Details)	2 Months Ended	3 Months Ended			10 Months Ended	12 Months Ended
	Dec. 31, 2019Y	Mar. 31, 2020Y	Mar. 31, 2019	[1]	Nov. 14, 2019	Dec. 31, 2018
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Financial Designation, Predecessor and Successor [Fixed List]	Successor	Successor	Predecessor		Predecessor	Predecessor
Expected volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	13	56
Expected dividend yield
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	7.3	12.8
Expected life (in years)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.9	0.6
Risk-free interest rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	1.6	0.2
[1]	Predecessor periods are combined as disclosed in Note 1.

Stockholders_ Equity and Memb_5

Stockholders’ Equity and Members’ Equity - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands		2 Months Ended	3 Months Ended			10 Months Ended	12 Months Ended
		Dec. 31, 2019	Mar. 31, 2020	Mar. 31, 2019		Nov. 14, 2019	Dec. 31, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Financial Designation, Predecessor and Successor [Fixed List]		Successor	Successor	Predecessor	[1]	Predecessor	Predecessor
Basic Earnings
Net income			$ 27,279	$ 24,989	[1]
Basic Earnings			27,279
Diluted Earnings
Net income			27,279	$ 24,989	[1]
Diluted Earnings			$ 27,279
Weighted average number of common shares:
Basic weighted-average shares of common stock outstanding			132,111,329
Shares for warrants and restricted stock units			224,986
Diluted weighted-average shares of common stock outstanding			132,336,315
Earnings Per Share Attributable to common stockholders
Basic	[2]		$ 0.21
Diluted	[2]		$ 0.21
Restricted stock units
Earnings Per Share Attributable to common stockholders
Granted			91,065	150
Warrant
Earnings Per Share Attributable to common stockholders
Antidilutive securities			15,600,000
[1]	Predecessor periods are combined as disclosed in Note 1.
[2]	The Company determined that earnings per unit in the Predecessor periods would not be meaningful to the users of this filing, given the different unit holders and members' equity structures of each individual entity in the Predecessor Company Group.

Income Taxes - (Details)

Income Taxes - (Details) - USD ($) $ in Thousands	2 Months Ended	3 Months Ended			10 Months Ended	12 Months Ended
	Dec. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	[1]	Nov. 14, 2019	Dec. 31, 2018
Income Taxes
Financial Designation, Predecessor and Successor [Fixed List]	Successor	Successor	Predecessor		Predecessor	Predecessor
Uncertain tax positions		$ 0
Amount accrued for penalties or interest		$ 0
[1]	Predecessor periods are combined as disclosed in Note 1.

Equity Incentive Plan - (Detail

Equity Incentive Plan - (Details) - shares	2 Months Ended	3 Months Ended			10 Months Ended	12 Months Ended
	Dec. 31, 2019	Mar. 31, 2020	Mar. 31, 2019		Nov. 14, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Financial Designation, Predecessor and Successor [Fixed List]	Successor	Successor	Predecessor	[1]	Predecessor	Predecessor
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSU's granted		91,065	150
Share-based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period, Which Vested Immediately		1
Vesting period			48 months
2019 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized					5,000,000
Shares available for grant		4,478,313
2019 Stock Incentive Plan | Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Threshold period within which recipient employment is terminated without cause to trigger accelerated vesting		24 months
2019 Stock Incentive Plan | Restricted stock units | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		1 year
2019 Stock Incentive Plan | Restricted stock units | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		3 years
2019 Stock Incentive Plan | Restricted stock units | Non employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSU's granted		521,687
[1]	Predecessor periods are combined as disclosed in Note 1.

Equity Incentive Plan - RSU's A

Equity Incentive Plan - RSU's Activity - (Details) - $ / shares	2 Months Ended	3 Months Ended			10 Months Ended	12 Months Ended
	Dec. 31, 2019	Mar. 31, 2020	Mar. 31, 2019		Nov. 14, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Financial Designation, Predecessor and Successor [Fixed List]	Successor	Successor	Predecessor	[1]	Predecessor	Predecessor
Restricted stock units
Shares
Outstanding at the beginning		334,928
Granted		91,065	150
Outstanding at the end	334,928	425,993
Weighted Average Grant Date Fair Market Value
Outstanding at the beginning		$ 11.08
Granted		12.50	$ 11,717
Outstanding at the end	$ 11.08	$ 11.38
[1]	Predecessor periods are combined as disclosed in Note 1.

Equity Incentive Plan - Compens

Equity Incentive Plan - Compensation (Details) - USD ($) $ / shares in Units, $ in Millions	2 Months Ended	3 Months Ended			10 Months Ended	12 Months Ended
	Dec. 31, 2019	Mar. 31, 2020	Mar. 31, 2019		Nov. 14, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Financial Designation, Predecessor and Successor [Fixed List]	Successor	Successor	Predecessor	[1]	Predecessor	Predecessor
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation expense		$ 0.9	$ 0
Unrecognized compensation cost related to unvested stock-based compensation arrangements		$ 3.6
Weighted-average recognition period		1 year 8 months 12 days
RSU's granted		91,065	150
Fair value of grants		$ 12.50	$ 11,717
Vesting period			48 months
[1]	Predecessor periods are combined as disclosed in Note 1.

Commitments and contingencies (

Commitments and contingencies (Details)	2 Months Ended	3 Months Ended			10 Months Ended	12 Months Ended
	Dec. 31, 2019	Mar. 31, 2020statecounty	Mar. 31, 2019	[1]	Nov. 14, 2019	Dec. 31, 2018
Concentration Risk [Line Items]
Financial Designation, Predecessor and Successor [Fixed List]	Successor	Successor	Predecessor		Predecessor	Predecessor
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract		10 years
Mortgage notes receivables | Geographic concentration risk
Concentration Risk [Line Items]
Number of states in mortgage loans were originated | state		13
Number of counties in which loan portfolio concentrated | county		10
Concentration risk percentage		50.60%
[1]	Predecessor periods are combined as disclosed in Note 1.

Related party transactions (Det

Related party transactions (Details) - USD ($) $ / shares in Units, $ in Millions	2 Months Ended	3 Months Ended			10 Months Ended	12 Months Ended
	Dec. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	[1]	Nov. 14, 2019	Dec. 31, 2018
Related Party Transaction [Line Items]
Financial Designation	Successor	Successor	Predecessor		Predecessor	Predecessor
Warrants outstanding (in shares)	41,700,000	41,700,000
Farallon Capital Management, L.L.C
Related Party Transaction [Line Items]
Shares issued		7,174,163
Aggregate purchase price		$ 75
Reference Price		$ 10.45352229
Common stock exercisable term		365 days
Warrants outstanding (in shares)		7,174,163
Class of Warrant or Right, Amendment Fee Price of Warrants or Rights		$ 1.60
Farallon Capital Management, L.L.C | Farallon Capital Management, L.L.C
Related Party Transaction [Line Items]
Ownership percentage		5.00%
Maximum | Farallon Capital Management, L.L.C
Related Party Transaction [Line Items]
Additional shares of common stock		25,000,000
Minimum | Farallon Capital Management, L.L.C
Related Party Transaction [Line Items]
Beneficial ownership percentage		9.90%
[1]	Predecessor periods are combined as disclosed in Note 1.

Subsequent events (Details)

Subsequent events (Details) $ / shares in Units, $ in Millions	May 08, 2020USD ($)itemloan	Apr. 13, 2020$ / shares	May 08, 2020USD ($)loan	Dec. 31, 2019	Mar. 31, 2020USD ($)loan	Mar. 31, 2019	[1]	Nov. 14, 2019	Dec. 31, 2018
Subsequent Event [Line Items]
Financial Designation, Predecessor and Successor [Fixed List]				Successor	Successor	Predecessor		Predecessor	Predecessor
Impaired Financing Receivable, Number Of Loans | loan					4
Impaired Financing Receivable, Unpaid Principal Balance					$ 31.7
Subsequent Event
Subsequent Event [Line Items]
Common stock dividend declared | $ / shares		$ 0.06
Number of Mortgage notes receivable originated and/or refinanced | item	6
Financing Receivable, Loan in Process	$ 6		$ 6
Impaired Financing Receivable, Number Of Loans | loan	5		5
Impaired Financing Receivable, Unpaid Principal Balance	$ 50.5		$ 50.5
Impaired Financing Receivable, Number Of Loans Cured | loan			6
Impaired Financing Receivable, Cured Unpaid Principal Balance			$ 4.1
[1]	Predecessor periods are combined as disclosed in Note 1.