Broadmark Realty Capital (BRMK) 10-Q 10 Aug 20 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2020	Aug. 07, 2020
Document Information [Line Items]
Entity Registrant Name	BROADMARK REALTY CAPITAL INC.
Entity Central Index Key	0001784797
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2020
Entity File Number	001-39134
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	84-2620891
Entity Address, Address Line One	1420 Fifth Avenue, Suite 2000
Entity Address, City or Town	Seattle
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98101
City Area Code	206
Local Phone Number	971-0800
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	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		132,231,184
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Amendment Flag	false
Common Stock [Member]
Document Information [Line Items]
Title of 12(b) Security	Common Stock
Trading Symbol	BRMK
Security Exchange Name	NYSE
Warrant
Document Information [Line Items]
Title of 12(b) Security	Warrants
Trading Symbol	BRMK WS
Security Exchange Name	NYSE

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Assets
Cash and cash equivalents	$ 217,969	$ 238,214
Mortgage notes receivable, net	817,319	821,589
Interest and fees receivable	8,986	4,108
Investment in real property, net	3,690	5,837
Intangible assets, net	791	4,970
Goodwill	136,965	131,965
Other assets	4,606	2,046
Total assets	1,190,326	1,208,729
Liabilities and Equity
Accounts payable and accrued liabilities	4,494	8,415
Dividends payable	7,934	15,842
Total liabilities	12,428	24,257
Commitments and Contingencies
Common stock, $0.001 par value, 500,000,000 shares authorized, 132,231,184 and 132,015,635 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively	132	132
Preferred stock, $0.001 par value, 100,000,000 shares authorized, 0 shares issued and outstanding at June 30, 2020 and December 31, 2019
Additional Paid in Capital	1,211,001	1,209,120
Accumulated deficit	(33,235)	(24,780)
Total equity	1,177,898	1,184,472
Total liabilities and equity	$ 1,190,326	$ 1,208,729

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2020	Dec. 31, 2019
Unaudited 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)	132,231,184	132,015,635
Common stock shares outstanding (in shares)	132,231,184	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			6 Months Ended
		Jun. 30, 2020	Jun. 30, 2019		Jun. 30, 2020	Jun. 30, 2019
Financial Designation		Successor	Predecessor	[1]	Successor	Predecessor	[1]
Revenues
Revenues		$ 29,070	$ 36,573	[1]	$ 60,838	$ 66,356	[1]
Other Income (Expense):
Change in fair value of optional subscription liabilities		(1,458)			3,146
Impairment:
Loan loss provision		309	297	[1]	3,931	73	[1]
Operating expenses:
Compensation and employee benefits		3,044	1,925	[1]	6,237	3,853	[1]
General and administrative		4,500	3,151	[1]	6,778	6,241	[1]
Total Expenses		7,853	5,373	[1]	16,946	10,167	[1]
Income before income taxes		19,759	31,200	[1]	47,038	56,189	[1]
Income tax provision			0			0
Net income		$ 19,759	31,200	[1]	$ 47,038	56,189	[1]
Earnings per common share:
Basic	[2]	$ 0.15			$ 0.36
Diluted	[2]	$ 0.15			$ 0.36
Weighted-average shares of common stock outstanding, basic and diluted
Basic		132,165,005			132,120,290
Diluted		132,165,005			132,120,290
Interest Income [Member]
Revenues
Revenues		$ 22,180	23,456	[1]	$ 46,733	44,079	[1]
Fee Income [Member]
Revenues
Revenues		$ 6,890	$ 13,117	[1]	$ 14,105	$ 22,277	[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
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income								$ 24,989	$ 24,989
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	[1]	6,827,701
Increase (Decrease) In Members Equity [RollForward]
Contributions		$ 79,535		$ 200					79,735
Contributions (in units)		796,028	[1]	850
Reinvestments		$ 7,094							7,094
Reinvestments (in units)	[1]	71,086
Net Income								24,989	24,989
Distributions								(24,134)	(24,134)
Redemptions		$ (13,331)							(13,331)
Redemptions (in units)	[1]	(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	[1]	7,561,302
Financial Designation	[1]								Predecessor
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	[1]								$ 56,189
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	[1]	6,827,701
Increase (Decrease) In Members Equity [RollForward]
Net Income	[1]								56,189
Balance as of at Jun. 30, 2019		$ 866,358		$ 201			1,805	2,293	$ 870,657
Balance as of (in units) at Jun. 30, 2019				21,850	150
Balance as of (in units) at Jun. 30, 2019	[1]	8,861,987
Financial Designation	[1]								Predecessor
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income								31,200	$ 31,200	[1]
Balances 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	[1]	7,561,302
Increase (Decrease) In Members Equity [RollForward]
Contributions		$ 122,414							122,414
Contributions (in units)	[1]	1,441,711
Reinvestments		$ 8,594							8,594
Reinvestments (in units)	[1]	86,222
Net Income								31,200	31,200	[1]
Distributions								(29,125)	(29,125)
Redemptions		$ (22,927)							(22,927)
Redemptions (in units)	[1]	(227,248)
Grants of restricted units							170		170
Balance as of at Jun. 30, 2019		$ 866,358		$ 201			1,805	2,293	870,657
Balance as of (in units) at Jun. 30, 2019				21,850	150
Balance as of (in units) at Jun. 30, 2019	[1]	8,861,987
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)
Stock-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
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]
Net Income									47,038
Balance at Jun. 30, 2020						$ 132	1,211,001	(33,235)	1,177,898
Balance, Shares at Jun. 30, 2020						132,231,184
Increase (Decrease) In Members Equity [RollForward]
Net Income									$ 47,038
Financial Designation									Successor
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 Stockholders' Equity [Roll Forward]
Issuance of shares from vested RSUs (in shares)						119,855
Net Income								19,759	19,759
Dividends								(23,793)	(23,793)
Stock-based compensation expense							967		967
Balance at Jun. 30, 2020						$ 132	$ 1,211,001	(33,235)	1,177,898
Balance, Shares at Jun. 30, 2020						132,231,184
Increase (Decrease) In Members Equity [RollForward]
Net Income								$ 19,759	$ 19,759
[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			6 Months Ended			10 Months Ended
		Dec. 31, 2019	Jun. 30, 2020	Jun. 30, 2019	[1]	Jun. 30, 2020	Jun. 30, 2019		Nov. 14, 2019
Unaudited Condensed Consolidated Statement of Cash Flows [Abstract]
Financial Designation, Predecessor and Successor [Fixed List]		Successor	Successor	Predecessor		Successor	Predecessor	[1]	Predecessor
Cash flows from operating activities
Net income						$ 47,038	$ 56,189	[1]
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization						(821)
Depreciation						36	34	[1]
Compensation expense related to grant of profits interest	[1]						734
Stock-based compensation expense for restricted stock units						1,881
Grants of restricted units	[1]						304
Provision for loan losses			$ 309	$ 297		3,931	73	[1]
Write down of investment in real property	[1]						519
Change in fair value of optional subscription liabilities						(3,146)
Changes in operating assets and liabilities:
Interest and fees receivable						(4,878)	(4,284)	[1]
Deferred income						4,887
Change in other assets						(1,385)	(363)	[1]
Accounts payable and accrued liabilities						(775)	816	[1]
Net cash provided by operating activities						46,768	54,022	[1]
Cash flows from investing activities:
Investments in fixed assets	[1]						(67)
Proceeds from sale of real property						2,213	6,139	[1]
Improvements to investments in real property						(66)	(210)	[1]
Change in mortgage notes receivable						(5,759)	(132,497)	[1]
Net cash provided by (used in) investing activities						(3,612)	(126,635)	[1]
Cash flows from financing activities:
Contributions from members	[1]						203,005
Contributions received in advance	[1]						15,395
Dividends paid						(63,401)
Distributions	[1]						(36,174)
Redemptions of members	[1]						(36,258)
Net cash provided by (used in) financing activities						(63,401)	145,968	[1]
Net increase in cash and cash equivalents						(20,245)	73,355	[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	217,969	$ 185,589		217,969	185,589	[1]
Supplemental disclosure of non-cash investing and financing activities
Dividends payable		$ 15,842	$ 7,934			7,934
Reinvested distributions	[1]						$ 15,688
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	6 Months Ended
	Jun. 30, 2020
Organization and business
Organization and business	Note 1 - Organization and business Broadmark Realty Capital Inc. (“Broadmark Realty,” “the Company,” “Successor,” “we,” “us” and “our”) is an internally managed commercial real estate finance company that provides secured financing to real estate investors and developers. Broadmark Realty’s objective is to preserve and protect 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 provide Broadmark Realty the ability to efficiently access the underlying 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 Merger Corp. (“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, LLC originates short-term loans secured by first deed of trust liens on residential and commercial real estate. BRMK Management, Corp. (the “Manager”) manages the underwriting, closing, servicing and disposition of mortgage notes, and performs all general and administrative duties. Broadmark Private REIT Management, LLC (the “Private REIT Manager”) was designed to manage the newly organized Broadmark Private REIT, LLC (the “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 a 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	6 Months Ended
	Jun. 30, 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 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 (“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 our Annual Report on Form 10-K filed on March 16, 2020 with the SEC (the “Annual Report”). The condensed consolidated balance sheet as of December 31, 2019, included herein, was derived from the audited financial statements of Broadmark Realty Capital Inc. as of that date. The presentation of the Predecessor period has been conformed to the current period’s presentation for the purposes of these consolidated financial statements. Additionally, certain balance sheet captions as of December 31, 2019 have been reclassified to conform to the current period's presentation. 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 June 30, 2020, Broadmark Realty is not the primary beneficiary of and, therefore, does not consolidate any VIEs. Certain Significant Risks and Uncertainties In the normal course of business, we encounter one primary type of economic risk in the form of credit risk. Credit risk is the risk of default on our investment in mortgage notes receivable resulting from a borrower’s inability or unwillingness to make contractually required payments. We believe that the carrying values of our investments reasonably consider this credit risk. In addition, we are subject to significant tax risks. If we were to fail to qualify as a REIT in any taxable year, we would be subject to U.S. federal corporate income tax, which could be material. Broadmark Realty operates in a dynamic industry and, accordingly, can be affected by a variety of factors. For example, we believe that changes in any of the following areas could have a significant negative effect on us in terms of our future financial position, results of operations or cash flows: public health crises, like the novel coronavirus (“COVID-19”) pandemic; competition in our market; the stability of the real estate market and the impact of interest rate changes; changes in government regulation affecting our business; natural disasters and catastrophic events; our ability to attract and retain qualified employees and key personnel; protection of customers’ information and other privacy concerns, among other things. 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, goodwill and identified intangibles, and warrant liabilities. Accordingly, actual results could differ from those estimates. Reportable Segments We operate the business as one reportable segment. BALANCE SHEET MEASUREMENT Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of 90 days or less at the date of purchase to be cash equivalents. We have a cash management sweep account repurchase agreement whereby our bank nightly sweeps cash in excess of $750,000, sells us specific U.S. Government Agency securities and then repurchases them the next day. We maintain our cash and cash equivalents with financial institutions. At times, such amounts may exceed federally insured limits. As of June 30, 2020 and December 31, 2019, the uninsured cash and cash equivalents balance was $216.4 million and $236.7 million, respectively. There were no restrictions on cash as of June 30, 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 we have 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, deferred origination and extension fees. Mortgage notes receivable that are in contractual default are deemed to be non-performing and are evaluated for impairment. All of our loans are considered collateral dependent, and therefore, non-performing loans are evaluated for impairment based on the fair value of the collateral less estimated costs to sell. Deferred income represents the amount of our origination and amendment or extension fees that have been deferred and will be recognized in income over the contractual maturity of the underlying loan. ​ Participations in mortgage notes receivables are accounted for as sales and derecognized from the balance sheet when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (1) a group of financial assets or a participating interest in an entire financial asset has been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. If the sales do not meet these criteria, the sale of the participation is treated as a secured borrowing. As of June 30, 2020, all participations in mortgage notes receivable sold to the Private REIT have achieved sale accounting. There were no participations as of December 31, 2019. Real property Real property owned by us consists of real estate acquired in settlement of loans. Real estate acquired through foreclosure or deed in lieu of foreclosure is recorded at fair value at the time of acquisition, which generally approximates the net 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. As of June 30, 2020 and December 31, 2019, real properties owned by us consist of real estate acquired as a result of foreclosure proceedings on one and two partially completed construction projects, 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, we follow ASC 350, Intangibles—Goodwill and Other Intangible Assets As a result of the Business Combination in November 2019, we identified intangible assets in the form of customer relationships. We recorded the intangible assets at fair value at the acquisition date and are amortizing the value of these finite lived intangibles into expense over the expected useful life. Our 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 Other Assets Other assets primarily consist of prepaid insurance, right-of-use asset and other operating receivables. In connection with the Business Combination, we entered into an arrangement to sublease an operating lease and have recorded a right-of-use asset and a lease liability Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities primarily consist of accruals for payments of professional services 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 we believe, 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 condensed consolidated statement of income. Fee Income We collect loan origination fees in conjunction with origination. In addition, we charge extension fees in conjunction with modification of the terms of our existing loans. We defer and amortize loan origination fees, direct loan origination costs and loan extension fees over the contractual terms of the loans. The Predecessor Companies did not defer origination fees, direct loan origination costs, and loan extension fees and, rather, recorded origination fees and costs at the time of origination due to the short-term nature of the loans, and the difference is not considered significant. We charge inspection fees, which we use to hire independent inspectors to report on the status of construction projects. These fees are earned and recognized upon each construction draw request. Interest 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, we charge late fees on borrower payments. We monitor each note’s outstanding interest and fee receivables and, based on historical performance, generally write off the balance after a receivable is greater than 60 days past due. Impairment of Loans We designate loans as non-performing at such time as (1) the borrower fails to make the required monthly interest-only loan payments; (2) the loan has a maturity default; or (3) in the opinion of management, it is probable we 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 collectible. The allowance for loan losses reflects our 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 our 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. We consider a loan to be impaired when, based upon current information and events, we believe that it is probable that we 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 our loans, we evaluate 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 June 30, 2020, all of our allowance for loan losses represents an asset-specific allowance. EXPENSE RECOGNITION Operating Expenses Operating expenses are expensed as incurred. General and administrative expenses primarily consist of professional services, insurance, excise taxes and amortization of intangible assets. During 2020, no commissions were paid to a related party and for the three and six months ended June 30, 2019, commissions paid to a related party were $1.8 and $3.1 million, respectively, which are included in general and administrative expenses. Share‑Based Payments We follow 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 our employees and directors, we initially value restricted stock units based on the grant date closing price of our common stock. For awards with periodic vesting, we recognize 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. We account for forfeitures prospectively as they occur. If there are any modifications or cancellations of the underlying unvested share-based awards, we may be required to accelerate, 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. The Predecessor Management Companies’ expensed the fair value of profits interests granted to its employees and directors over the period each award vested. Compensation cost was measured using the Black-Scholes model. All unvested profits interests vested at the time of the Business Combination. Income Taxes (Successor) We intend 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, we generally are not subject to U.S. federal income taxes on net income we distribute to our shareholders. We intend to make timely distributions sufficient to satisfy the annual distribution requirements. If we fail to qualify as a REIT in any taxable year, we will be subject to U.S. federal income tax on our taxable income at regulator corporate tax rates. Even if we qualify for taxation as a REIT, we may be subject to certain state and local taxes on our income and property and U.S. federal income and excise taxes on our undistributed income and our TRSs are subject to U.S. federal income taxes. 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 and six months ended June 30, 2019 includes no provision for income taxes for the Predecessor Company Group. Earnings per Share We follow the accounting guidance in ASC 260, Earnings Per Share For purposes of the Predecessor period which includes the financial results of the Predecessor Company Group, we 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 Act (“JOBS Act”) permits us an extended transition period for complying with new or revised accounting standards affecting public companies. We have elected to use this extended transition period and adopt certain new accounting standards on the private company timeline, which means that our 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. We will cease to qualify as an emerging growth company effective December 31, 2020 unless the eligibility standards are modified. Loss of emerging growth company status will result in our losing our reporting exemptions noted above. 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, such as 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. We have formed a CECL committee that is assessing data and system needs in order to evaluate the impact of adopting the new guidance. We expect 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 we adopt the standard. At this time, the impact on our consolidated financial statements is being evaluated. We are required to adopt the standard in the fourth quarter of 2020 for the annual period ending December 31, 2020 unless the requirements are modified. In January 2017, the FASB issued ASU 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 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 prospective adoption. We adopted the standard on January 1, 2020 and there was no material impact on our unaudited condensed consolidated financial statements. In August 2018, the FASB issued ASU 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 (2) eliminates disclosure requirements for (a) transfers between Level 1 and Level 2 and (b) valuation processes for Level 3 fair value measurements. We adopted the standard on January 1, 2020 and there was no material impact on our unaudited condensed consolidated financial statements.

Business Combination

Business Combination	6 Months Ended
	Jun. 30, 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 one-fourth th 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 fair values of assets acquired and liabilities assumed by BRELF II on November 14, 2019 ​ ​ ​ ​ ​ 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 ​ In the first quarter of 2020, based on additional information obtained about facts and circumstances that existed as of November 14, 2019, we recorded a measurement period adjustment to reduce the fair value of intangible assets in the form of customer relationships from $6.0 to $1.0 million. This adjustment increased the preliminary amount of goodwill previously recorded by $5.0 million. The purchase price for the acquisition was determined based on our 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 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	6 Months Ended
	Jun. 30, 2020
Mortgage notes receivable
Mortgage notes receivable	Note 4 - Mortgage notes receivable The stated principal amount of loans receivable in our portfolio represents our interest in loans secured by first deeds of trust, security agreements or legal title to real estate located in the United States. Our lending standards require that all mortgage notes receivable be secured by a first deed of trust lien on real estate and that the maximum loan to value ratio (“LTV”) be no greater than 65% . The LTV is calculated on an “as-complete” appraised value of the underlying collateral as determined by an independent appraiser at the time of the loan origination. The lending standards also limit the initial outstanding principal balance of the loan to a maximum LTV of up to of our total assets. We consider the maximum LTV a credit quality indicator for the credit quality of a mortgage note receivable. Mortgage notes receivable are recorded at cost, which represents the carrying value, and interest rates generally range from a fixed annual rate of 10% to 13%. Mortgage notes receivable are considered to be short-term financings, with initial terms ranging from five 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 we deem construction to be sufficiently completed. The interest reserve represents amounts withheld from the funding of certain mortgage notes receivable for the purpose of satisfying monthly interest payments over all or part of the term of the related note. Accrued interest is paid out of the interest reserve and recognized as interest income at the end of each month. The deferred origination and extension fee income represents amounts that will be recognized over the contractual life of the underlying mortgage notes receivable. The following table summarizes information pertaining to mortgage notes receivable as of June 30, 2020 and December 31, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (dollars in thousands) June 30, 2020 December 31, 2019 Total loan commitments ​ $ 1,121,521 ​ $ 1,101,275 Less: ​ ​ ​ ​ ​ Construction holdbacks (1) ​ ​ 260,401 ​ ​ 253,708 Interest reserves (1) ​ ​ 21,907 ​ ​ 18,601 Private REIT participation (2) ​ ​ 6,931 ​ ​ — Total principal outstanding for our mortgage notes receivable ​ ​ 832,282 ​ ​ 828,966 Less: ​ ​ ​ ​ ​ ​ Allowance for loan losses ​ ​ 6,795 ​ ​ 4,096 Deferred fees ​ ​ 8,168 ​ ​ 3,281 Mortgage notes receivable, net ​ $ 817,319 ​ $ 821,589 (1) Includes construction holdbacks of $7.1 million and interest reserves of $0.7 million on participating interests sold to the Private REIT as of June 30, 2020. (2) The Private REIT was determined to be a voting interest entity for which we, through our wholly owned subsidiary acting as manager with no equity investment, do not hold a controlling interest in and do not consolidate the Private REIT. Furthermore, the Private REIT participation in loans originated by us meets the characteristics of a participating interest in accordance with ASC 860 and therefore, is treated as a sale of mortgage notes receivable and is derecognized from our unaudited condensed consolidated financial statements. Non-accrual status Mortgage notes receivable that are in contractual default are deemed to be non-performing and are evaluated for impairment. Loans can be placed in contractual default status for any of the following reasons: (1) an interest payment is more than 30 days past due; (2) a note matures and the borrower fails to make payment of all amounts owed or extend the loan; or (3) the collateral becomes impaired in such a way that the ultimate collection of the note is doubtful. A loan can be removed from contractual default status if the late interest payments are brought current, the borrower complies with appropriate re-underwriting to extend the note, or additional collateral is provided for the note to provide cash flow or bring the loan to collateral value ratio below 65%. No interest income is recognized on mortgage notes receivable that are in contractual default, unless the interest is paid in cash and collectability of all amounts due is reasonably assured. 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, we may place a current loan on non-accrual status and recognize interest income on a cash-basis. As of June 30, 2020 and December 31, 2019, the principal outstanding on loans placed on non-accrual status were $177.0 and $32.9 million, respectively. For the three and six months ended June 30, 2020, the average recorded investments in loans placed on non-accrual status were $164.6 and $120.7 million, respectively. For the three and six months ended June 30, 2019, the average recorded investments in loans placed on non-accrual status were $11.0 and $11.1 million, respectively. Impaired mortgage notes receivable We evaluate each loan for impairment at least quarterly. Impairment occurs when it is deemed probable that we will not be able to collect all amounts due according to the contractual terms of the loan, at which time, the loan is deemed to be impaired. Placing a loan in contractual default does not in and of itself result in an impairment if we deem it probable that we will ultimately collect all amounts due. If a loan is considered to be impaired, we record an allowance through the provision for loan losses to reduce the carrying value of the loan to the fair value of the collateral less estimated costs to sell, as all of our loans are classified as collateral dependent as repayment is expected solely from the collateral. As of June 30, 2020 and December 31, 2019, the principal outstanding on loans with impairment were $49.5 and $19.8 million, respectively. For the three and six months ended June 30, 2020, the average recorded investments in loans with impairment were $43.8 and $35.8 million, respectively. For the three and six months ended June 30, 2019, the average recorded investments in loans with impairment were $5.2 and $3.4 million, respectively. The following table summarizes the activity in the allowance for loan losses for the three and six months ended June 30, 2020 and June 30, 2019. All of the allowance for loan losses relates to loans deemed to be impaired. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Three Months Ended Six Months Ended ​ Six Months Ended (dollars in thousands) ​ June 30, 2020 ​ June 30, 2019 ​ June 30, 2020 ​ June 30, 2019 Beginning ​ $ 7,182 ​ $ 1,480 ​ $ 4,096 ​ $ 1,704 Provision for loan losses (benefits) ​ 309 ​ 297 ​ 3,931 ​ 73 Charge offs ​ (696) ​ — ​ (1,232) ​ — Ending ​ $ 6,795 ​ $ 1,777 ​ $ 6,795 ​ $ 1,777 ​

Fair value measurements

Fair value measurements	6 Months Ended
	Jun. 30, 2020
Fair value measurements
Fair value measurements	Note 5 – Fair value measurements The following tables present estimated fair values of our financial instruments as of the period indicated, whether or not recognized or recorded in the consolidated balance sheets at the period indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2020 ​ Fair Value Measurements Using ​ ​ ​ Carrying ​ ​ Estimated ​ ​ ​ ​ ​ ​ ​ ​ ​ (dollars in thousands) ​ ​ Value ​ ​ Fair Value ​ ​ Level 1 ​ ​ Level 2 ​ ​ Level 3 Financial Assets ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 217,969 ​ $ 217,969 ​ $ 217,969 ​ $ — ​ $ — Mortgage notes receivable, net ​ 817,319 ​ 817,319 ​ — ​ — ​ 817,319 Interest and fees receivable ​ 8,986 ​ 8,986 ​ — ​ 8,986 ​ — Investment in real property, net ​ 3,690 ​ 3,690 ​ — ​ — ​ 3,690 Financial Liabilities ​ ​ ​ ​ ​ Accounts payable and accrued liabilities (1) ​ $ 4,494 ​ $ 4,494 ​ $ — ​ $ 2,148 ​ $ 2,346 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2019 ​ Fair Value Measurements Using ​ ​ ​ Carrying ​ ​ Estimated ​ ​ ​ ​ ​ ​ ​ ​ ​ (dollars in thousands) ​ ​ Value ​ ​ Fair Value ​ ​ Level 1 ​ ​ Level 2 ​ ​ Level 3 Financial Assets ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 238,214 ​ $ 238,214 ​ $ 238,214 ​ $ — ​ $ — Mortgage notes receivable, net ​ 821,589 ​ 821,589 ​ — ​ — ​ 821,589 Interest and fees receivable ​ 4,108 ​ 4,108 ​ — ​ 4,108 ​ — Investment in real property, net ​ 5,837 ​ 5,837 ​ — ​ — ​ 5,837 Financial Liabilities ​ ​ ​ ​ ​ Accounts payable and accrued liabilities (1) ​ $ 8,415 ​ $ 8,415 ​ $ — ​ $ 2,923 ​ $ 5,492 (1) Includes the level 3 valuation of the optional subscription liability derivative measured at fair value on a recurring basis. ​ We follow the accounting guidance in ASC 820, Fair Value Measurements and Disclosures, which 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 June 30, 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 June 30, 2020 and December 31, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 3 ​ Valuation ​ Unobservable ​ Range of (dollars in thousands) ​ ​ June 30, 2020 ​ December 31, 2019 ​ technique ​ inputs ​ inputs ​ Optional subscription liability (1) $ 2,346 ​ $ 5,492 Valuation model ​ Refer to Note 7 for assumptions ​ 0 - 5 % Real property (2) ​ 3,690 ​ ​ 5,837 Collateral valuations ​ Discount to appraised value based on comparable market prices ​ 0 - 10 % Non-performing and impaired loans, net of allowance for loan losses (3) ​ 211,467 ​ ​ 28,853 Collateral valuations ​ Discount to appraised value based on comparable market prices ​ 0 - 10 % Total $ 217,503 ​ $ 40,182 ​ ​ ​ ​ ​ (1) Optional subscription liability derivative measured at fair value on a recurring basis. (2) Real estate property is stated at lower of cost or fair value, a non-recurring measurement of fair value. (3) Includes non-accrual and impaired loans, net of allowance for loss on loans deemed to be impaired. For our 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 non-performing and impaired loans, net of the allowance for loan losses, which 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 transaction is described in further detail in Note 11. We account for the Optional Subscription Liability as a derivative and, in accordance with ASC 815, we measure at fair value on a recurring basis. The value of this Optional Subscription Liability is included in accounts payable and accrued liabilities in the accompanying consolidated balance sheets. The $3.1 million decrease in value for the six months ended June 30, 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 our 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 using unobservable inputs in the valuation, we classify 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 sell, 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 our experience with actual liquidation values. These discounts to the appraisals generally range from 0% to 10%. As the result of using unobservable inputs in the valuation, we classify investments in real properties as Level 3 within the fair value hierarchy. For mortgage notes receivable in contractual default status, fair values are based on the value of the underlying collateral less the costs to sell. At each reporting date, loans in contractual default status are evaluated based upon the most recent independent third-party appraisals of value discounted based upon our experience with actual liquidation values. These discounts to the appraisals generally range from 0% to 10%. As the result of using unobservable inputs in the valuation, we classify investments in real properties as Level 3 within the fair value hierarchy. Fair value disclosure only For certain of our 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 initial terms ranging between five

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
	Jun. 30, 2020
Goodwill and Intangible Assets
Goodwill and Intangible Assets	Note 6 – Goodwill and Intangible Assets Goodwill All of our goodwill relates to the Business Combination. As discussed in Note 3, in the first quarter of 2020, we 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 our preliminary value of goodwill by $5.0 million resulting in $137.0 million of goodwill as of June 30, 2020. As a result of this adjustment to preliminary values, $0.9 million of amortization of intangible assets recorded in 2019 was reversed in the first quarter of 2020. ​ In accordance with ASC Topic 350, we continuously evaluate the presence of triggering events that require an impairment test. In the first quarter of 2020, we determined that COVID-19 was a triggering event based on the adverse impact on our business and results of operations. Specifically, we noted that COVID-19 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. We performed a quantitative assessment of our 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 goodwill impairment. During the second quarter of 2020, we continued to monitor the impact of COVID-19 and determined there were no new triggering events to warrant updating our quantitative assessment of goodwill performed as of March 31, 2020. We will continue to monitor the impact of COVID-19 and will reevaluate the fair value of the reporting unit during our annual assessment in October 2020 or earlier in the case of another triggering event. ​ Intangible Assets All of our intangible assets relate to the Business Combination, specifically the value of customer relationships. The following table summarizes the balances of intangible assets as of June 30, 2020: ​ ​ ​ ​ ​ ​ ​ Acquired (dollars in thousands) Intangibles Asset Type ​ Customer relationships $ 1,000 Less: Accumulated amortization ​ 209 Intangible assets, net $ 791 ​ The weighted average life remaining of the intangible assets is approximately 2.4 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 ​ $ 168 ​ $ 333 ​ $ 290 ​

Stockholders' Equity and Member

Stockholders' Equity and Members' Equity	6 Months Ended
	Jun. 30, 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 our common stock are entitled to one vote for each share. As of June 30, 2020 and December 31, 2019, there were 132,231,184 and 132,015,635 shares of common stock issued outstanding As of June 30, 2020 and December 31, 2019 The liability for the Optional Subscription was $2.3 million as of June 30, 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 our audited consolidated financial statements included in our 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 June 30, 2020 As of December 31, 2019 Expected volatility ​ 64.0 % ​ 13.0 % Expected dividend yield ​ 7.6 % ​ 7.3 % Expected life (in years) ​ 0.4 ​ 0.9 ​ Risk-free interest rate ​ 0.2 % ​ 1.6 % ​ Earnings per Share We present both basic and diluted earnings per share (“EPS”) amounts in our condensed 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 our outstanding warrants and restricted stock units. We consider 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 GAAP, our 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 and six months ended June 30, 2020. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended (dollars in thousands, except share and per share data): ​ June 30, 2020 ​ June 30, 2020 Basic Earnings ​ ​ Net income and Basic Earnings ​ $ 19,759 ​ $ 47,038 ​ ​ ​ ​ ​ ​ ​ Diluted Earnings ​ ​ ​ ​ Net income and Diluted Earnings ​ $ 19,759 ​ $ 47,038 Number of Shares: ​ ​ ​ Basic weighted-average shares of common stock outstanding ​ ​ 132,165,005 ​ ​ 132,120,290 Shares for warrants and restricted stock units ​ — ​ — Diluted weighted-average shares of common stock outstanding (1) ​ ​ 132,165,005 ​ ​ 132,120,290 Earnings Per Share Attributable to common stockholders ​ ​ Basic ​ $ 0.15 ​ $ 0.36 Diluted ​ $ 0.15 ​ $ 0.36 (1) We exclude 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 and 353,364 shares of unvested restricted stock awards, which are not included in the above calculation of diluted earnings per share because in doing so they would be 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 condensed consolidated Predecessor Company Group financial statements, as they represent intra-entity balances between entities within the consolidated Predecessor Company Group. ​ Earnings Per Unit (Predecessor) We determined that earnings per unit would not be meaningful to the users of these financial statements for the Predecessor period.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2020
Income Taxes
Income Taxes	Note 8 - Income Taxes For the Successor period, the Manager has elected to be treated as a TRS and this election applies to the wholly owned subsidiaries of the Manager, including the Private Manager, refer to Note 1 for further discussion. Having TRSs permit us to participate in certain activities from which REITs are generally precluded, as long as these activities meet specific criteria, are conducted within the parameters of certain limitations established by the Code and are conducted in entities which elect to be treated as taxable subsidiaries under the Code. To the extent these criteria are met, we will continue to maintain the qualification as a REIT. We generally must distribute annually at least 90% of our net taxable income, subject to certain adjustments and excluding any net capital gain, in order for U.S. federal income tax not to apply to our earnings that we distribute. To the extent that we satisfy this distribution requirement but distribute less than 100% of our net taxable income, we will be subject to U.S. federal income tax on our undistributed taxable income. In addition, we will be subject to a 4% nondeductible excise tax if the actual amount that we pay out to our stockholders in a calendar year is less than a minimum amount specified under U.S. federal tax laws. Our qualification as a REIT also depends on our ability to meet various other requirements imposed by the Code, which relate to organizational structure, diversity of stock ownership, and certain restrictions with regard to the nature of assets and the sources of income. Even if we qualify as a REIT, we may be subject to certain U.S. federal income and excise taxes and state and local taxes on our income and assets. If we fail to maintain our qualification as a REIT for any taxable year, we may be subject to material penalties as well as federal, state, and local income tax on our taxable income at regular corporate rates and we would not be able to qualify as a REIT for the subsequent four full taxable years. As of June 30, 2020 and December 31, 2019, we were in compliance with all REIT requirements. Based on our evaluation, we concluded that there are no significant uncertain tax positions requiring recognition in our 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 the accompanying unaudited condensed consolidated financial statements. The state and local tax jurisdictions for which we are subject to tax-filing obligations recognize our status as a REIT, and therefore, we generally do not pay income tax in such jurisdictions. We may, however, be subject to certain minimum state and local tax filing fees as well as certain excise or business taxes. Our TRSs are subject to federal, state and local income taxes.

Equity Incentive Plan

Equity Incentive Plan	6 Months Ended
	Jun. 30, 2020
Equity Incentive Plan
Equity Incentive Plan	Note 9 - Equity Incentive Plan Stock Incentive Plan On November 14, 2019, we 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 us. The Plan is administered by the compensation committee of our board of directors. As of June 30, 2020 and December 31, 2019, respectively, 4,431,087 and 4,569,378 share awards were available to be issued under the Plan. We awarded 568,913 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 All RSUs awarded will be settled upon vesting in shares of our common stock. If (1) the recipient becomes disabled and the recipient’s employment or service is terminated as a result, (2) the recipient dies during the vesting period, or (3) solely with respect to our 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 are not paid on RSUs granted to executive officers and directors until settlement of those RSUs in shares of our common stock and these are not considered participating securities. The RSUs 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 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted Average ​ ​ ​ ​ Grant Date Fair ​ ​ Shares ​ Market Value Unvested RSUs outstanding as of January 1, 2020 334,928 ​ $ 11.08 Granted 186,759 ​ ​ 11.77 Vested (95,694) ​ ​ 11.08 Unvested RSUs outstanding as of March 31, 2020 425,993 ​ ​ ​ Granted 47,226 ​ ​ 9.64 Vested (119,855) ​ $ 11.08 Unvested RSUs outstanding as of June 30, 2020 353,364 ​ ​ ​ ​ For the three and six months ended June 30, 2020, we recognized compensation expense related to RSUs of $1.0 and $1.9 million based on amortizing the fair value of the awards over the service (vesting) period. As of June 30, 2020, there was $3.1 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 six months and has a weighted-average recognition period of 1.3 years. Profits Interests and Equity Compensation (Predecessor) The Predecessor Company Group expensed the fair value of share-based compensation awards granted to 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 employees over the period each award vested. There were . The fair value of restricted unit awards was equal to the fair value of the Predecessor 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,

Commitments and contingencies

Commitments and contingencies	6 Months Ended
	Jun. 30, 2020
Commitments and contingencies.
Commitments and contingencies	Note 10 - Commitments and contingencies The following table illustrates our contractual obligations and commercial commitments by due date as of June 30, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less than 1 ​ ​ ​ ​ More than (dollars in thousands) ​ Total ​ year ​ 1-3 years ​ 3-5 years ​ 5 years Operating lease obligations ​ $ 12,076 ​ $ 647 ​ $ 1,879 ​ $ 1,993 ​ $ 7,557 Construction holdbacks ​ 260,401 ​ 230,435 ​ 29,966 ​ — ​ — Total ​ $ 272,477 ​ $ 231,082 ​ $ 31,845 ​ $ 1,993 ​ $ 7,557 ​ Our 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, we signed a new ten-year lease agreement for our Seattle headquarters which is expected to commence in the first or second quarter of 2021 upon completion of tenant improvements. From time to time, we are named as a defendant in legal actions relating to transactions conducted in the ordinary course of business. Although there can be no assurance of the outcome of such legal actions, in the opinion of management, we do not have a potential liability related to any current legal proceeding or claim that would individually or in the aggregate materially affect our results of operations, financial condition or cash flows. Concentration Risk We originate primarily short-term loans secured by first deed of trust liens on residential and commercial real estate located in 13 states and the District of Columbia. Our loan portfolio is also concentrated within ten counties, the largest being Wasatch in Utah. As of June 30, 2020, the top ten counties make up 46.7% of the total committed amount of loans in our total portfolio.

Related party transactions

Related party transactions	6 Months Ended
	Jun. 30, 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. Broadmark Private REIT, LLC The Private REIT is a private real estate finance company that primarily participates in short-term, first deed of trust loans secured by real estate that are originated, underwritten and serviced by Broadmark Realty Capital Inc. The Private REIT was determined to be a voting interest entity for which we, through our wholly owned subsidiary acting as manager with no equity investment, do not hold a controlling interest in and do not consolidate the Private REIT. Furthermore, the Private REIT participation in loans originated by us meets the characteristics of a participating interest in accordance with ASC 860 and therefore, is treated as a sale of mortgage notes receivable and is derecognized from our unaudited condensed consolidated financial statements. As of June 30, 2020, the Private REIT’s assets under management were approximately $12.4 million.

Subsequent events

Subsequent events	6 Months Ended
	Jun. 30, 2020
Subsequent events
Subsequent events	Note 12 - Subsequent events Dividend Declaration On July 13, 2020, our board of directors declared a common stock dividend of $0.06 per share for the month of July 2020, which is payable on August 14, 2020 to stockholders of record as of July 31, 2020. On August 10, 2020, our board of directors declared a common stock dividend of $0.06 per share for the month of August 2020, which is payable on September 15, 2020 to stockholders of record as of August 31, 2020. Loan Portfolio Subsequent to June 30, 2020, through August 7, 2020, we originated $88.0 million in face amounts of mortgage notes receivable.

Summary of significant accoun_2

Summary of significant accounting policies (Policies)	6 Months Ended
	Jun. 30, 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 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 (“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 our Annual Report on Form 10-K filed on March 16, 2020 with the SEC (the “Annual Report”). The condensed consolidated balance sheet as of December 31, 2019, included herein, was derived from the audited financial statements of Broadmark Realty Capital Inc. as of that date. The presentation of the Predecessor period has been conformed to the current period’s presentation for the purposes of these consolidated financial statements. Additionally, certain balance sheet captions as of December 31, 2019 have been reclassified to conform to the current period's presentation.
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 June 30, 2020, Broadmark Realty is not the primary beneficiary of and, therefore, does not consolidate any VIEs.
Certain Significant Risks and Uncertainties	Certain Significant Risks and Uncertainties In the normal course of business, we encounter one primary type of economic risk in the form of credit risk. Credit risk is the risk of default on our investment in mortgage notes receivable resulting from a borrower’s inability or unwillingness to make contractually required payments. We believe that the carrying values of our investments reasonably consider this credit risk. In addition, we are subject to significant tax risks. If we were to fail to qualify as a REIT in any taxable year, we would be subject to U.S. federal corporate income tax, which could be material. Broadmark Realty operates in a dynamic industry and, accordingly, can be affected by a variety of factors. For example, we believe that changes in any of the following areas could have a significant negative effect on us in terms of our future financial position, results of operations or cash flows: public health crises, like the novel coronavirus (“COVID-19”) pandemic; competition in our market; the stability of the real estate market and the impact of interest rate changes; changes in government regulation affecting our business; natural disasters and catastrophic events; our ability to attract and retain qualified employees and key personnel; protection of customers’ information and other privacy concerns, among other things.
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, goodwill and identified intangibles, and warrant liabilities. Accordingly, actual results could differ from those estimates.
Reportable Segments	Reportable Segments We operate the business as one reportable segment.
Cash and Cash Equivalents	Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of 90 days or less at the date of purchase to be cash equivalents. We have a cash management sweep account repurchase agreement whereby our bank nightly sweeps cash in excess of $750,000, sells us specific U.S. Government Agency securities and then repurchases them the next day. We maintain our cash and cash equivalents with financial institutions. At times, such amounts may exceed federally insured limits. As of June 30, 2020 and December 31, 2019, the uninsured cash and cash equivalents balance was $216.4 million and $236.7 million, respectively. There were no restrictions on cash as of June 30, 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 we have 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, deferred origination and extension fees. Mortgage notes receivable that are in contractual default are deemed to be non-performing and are evaluated for impairment. All of our loans are considered collateral dependent, and therefore, non-performing loans are evaluated for impairment based on the fair value of the collateral less estimated costs to sell. Deferred income represents the amount of our origination and amendment or extension fees that have been deferred and will be recognized in income over the contractual maturity of the underlying loan. ​ Participations in mortgage notes receivables are accounted for as sales and derecognized from the balance sheet when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (1) a group of financial assets or a participating interest in an entire financial asset has been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. If the sales do not meet these criteria, the sale of the participation is treated as a secured borrowing. As of June 30, 2020, all participations in mortgage notes receivable sold to the Private REIT have achieved sale accounting. There were no participations as of December 31, 2019.
Real property	Real property Real property owned by us consists of real estate acquired in settlement of loans. Real estate acquired through foreclosure or deed in lieu of foreclosure is recorded at fair value at the time of acquisition, which generally approximates the net 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. As of June 30, 2020 and December 31, 2019, real properties owned by us consist of real estate acquired as a result of foreclosure proceedings on one and two partially completed construction projects, 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, we follow ASC 350, Intangibles—Goodwill and Other
Intangible Assets	Intangible Assets As a result of the Business Combination in November 2019, we identified intangible assets in the form of customer relationships. We recorded the intangible assets at fair value at the acquisition date and are amortizing the value of these finite lived intangibles into expense over the expected useful life. Our 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
Other Assets	Other Assets Other assets primarily consist of prepaid insurance, right-of-use asset and other operating receivables. In connection with the Business Combination, we entered into an arrangement to sublease an operating lease and have recorded a right-of-use asset and a lease liability
Accounts Payable and Accrued Liabilities	Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities primarily consist of accruals for payments of professional services 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 we believe, 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 condensed consolidated statement of income.
Fee Income	Fee Income We collect loan origination fees in conjunction with origination. In addition, we charge extension fees in conjunction with modification of the terms of our existing loans. We defer and amortize loan origination fees, direct loan origination costs and loan extension fees over the contractual terms of the loans. The Predecessor Companies did not defer origination fees, direct loan origination costs, and loan extension fees and, rather, recorded origination fees and costs at the time of origination due to the short-term nature of the loans, and the difference is not considered significant. We charge inspection fees, which we use to hire independent inspectors to report on the status of construction projects. These fees are earned and recognized upon each construction draw request.
Interest 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, we charge late fees on borrower payments. We monitor each note’s outstanding interest and fee receivables and, based on historical performance, generally write off the balance after a receivable is greater than 60 days past due.
Impairment of Loans	Impairment of Loans We designate loans as non-performing at such time as (1) the borrower fails to make the required monthly interest-only loan payments; (2) the loan has a maturity default; or (3) in the opinion of management, it is probable we 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 collectible. The allowance for loan losses reflects our 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 our 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. We consider a loan to be impaired when, based upon current information and events, we believe that it is probable that we 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 our loans, we evaluate 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 June 30, 2020, all of our allowance for loan losses represents an asset-specific allowance.
Operating Expenses	Operating Expenses Operating expenses are expensed as incurred. General and administrative expenses primarily consist of professional services, insurance, excise taxes and amortization of intangible assets. During 2020, no commissions were paid to a related party and for the three and six months ended June 30, 2019, commissions paid to a related party were $1.8 and $3.1 million, respectively, which are included in general and administrative expenses.
ShareBased Payments	Share‑Based Payments We follow 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 our employees and directors, we initially value restricted stock units based on the grant date closing price of our common stock. For awards with periodic vesting, we recognize 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. We account for forfeitures prospectively as they occur. If there are any modifications or cancellations of the underlying unvested share-based awards, we may be required to accelerate, 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. The Predecessor Management Companies’ expensed the fair value of profits interests granted to its employees and directors over the period each award vested. Compensation cost was measured using the Black-Scholes model. All unvested profits interests vested at the time of the Business Combination.
Income Taxes	Income Taxes (Successor) We intend 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, we generally are not subject to U.S. federal income taxes on net income we distribute to our shareholders. We intend to make timely distributions sufficient to satisfy the annual distribution requirements. If we fail to qualify as a REIT in any taxable year, we will be subject to U.S. federal income tax on our taxable income at regulator corporate tax rates. Even if we qualify for taxation as a REIT, we may be subject to certain state and local taxes on our income and property and U.S. federal income and excise taxes on our undistributed income and our TRSs are subject to U.S. federal income taxes. 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 and six months ended June 30, 2019 includes no provision for income taxes for the Predecessor Company Group.
Earnings per Share	Earnings per Share We follow the accounting guidance in ASC 260, Earnings Per Share For purposes of the Predecessor period which includes the financial results of the Predecessor Company Group, we 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 Act (“JOBS Act”) permits us an extended transition period for complying with new or revised accounting standards affecting public companies. We have elected to use this extended transition period and adopt certain new accounting standards on the private company timeline, which means that our 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. We will cease to qualify as an emerging growth company effective December 31, 2020 unless the eligibility standards are modified. Loss of emerging growth company status will result in our losing our reporting exemptions noted above. 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, such as 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. We have formed a CECL committee that is assessing data and system needs in order to evaluate the impact of adopting the new guidance. We expect 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 we adopt the standard. At this time, the impact on our consolidated financial statements is being evaluated. We are required to adopt the standard in the fourth quarter of 2020 for the annual period ending December 31, 2020 unless the requirements are modified. In January 2017, the FASB issued ASU 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 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 prospective adoption. We adopted the standard on January 1, 2020 and there was no material impact on our unaudited condensed consolidated financial statements. In August 2018, the FASB issued ASU 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 (2) eliminates disclosure requirements for (a) transfers between Level 1 and Level 2 and (b) valuation processes for Level 3 fair value measurements. We adopted the standard on January 1, 2020 and there was no material impact on our unaudited condensed consolidated financial statements.

Business Combination (Tables)

Business Combination (Tables)	6 Months Ended
	Jun. 30, 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)	6 Months Ended
	Jun. 30, 2020
Mortgage notes receivable
Schedule of mortgage notes receivable	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (dollars in thousands) June 30, 2020 December 31, 2019 Total loan commitments ​ $ 1,121,521 ​ $ 1,101,275 Less: ​ ​ ​ ​ ​ Construction holdbacks (1) ​ ​ 260,401 ​ ​ 253,708 Interest reserves (1) ​ ​ 21,907 ​ ​ 18,601 Private REIT participation (2) ​ ​ 6,931 ​ ​ — Total principal outstanding for our mortgage notes receivable ​ ​ 832,282 ​ ​ 828,966 Less: ​ ​ ​ ​ ​ ​ Allowance for loan losses ​ ​ 6,795 ​ ​ 4,096 Deferred fees ​ ​ 8,168 ​ ​ 3,281 Mortgage notes receivable, net ​ $ 817,319 ​ $ 821,589 (1) Includes construction holdbacks of $7.1 million and interest reserves of $0.7 million on participating interests sold to the Private REIT as of June 30, 2020. (2) The Private REIT was determined to be a voting interest entity for which we, through our wholly owned subsidiary acting as manager with no equity investment, do not hold a controlling interest in and do not consolidate the Private REIT. Furthermore, the Private REIT participation in loans originated by us meets the characteristics of a participating interest in accordance with ASC 860 and therefore, is treated as a sale of mortgage notes receivable and is derecognized from our unaudited condensed consolidated financial statements.
Schedule of allowance for loan losses relates to loans in default	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Three Months Ended Six Months Ended ​ Six Months Ended (dollars in thousands) ​ June 30, 2020 ​ June 30, 2019 ​ June 30, 2020 ​ June 30, 2019 Beginning ​ $ 7,182 ​ $ 1,480 ​ $ 4,096 ​ $ 1,704 Provision for loan losses (benefits) ​ 309 ​ 297 ​ 3,931 ​ 73 Charge offs ​ (696) ​ — ​ (1,232) ​ — Ending ​ $ 6,795 ​ $ 1,777 ​ $ 6,795 ​ $ 1,777

Fair value measurements (Tables

Fair value measurements (Tables)	6 Months Ended
	Jun. 30, 2020
Fair value measurements
Schedule of fair value of assets and liabilities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2020 ​ Fair Value Measurements Using ​ ​ ​ Carrying ​ ​ Estimated ​ ​ ​ ​ ​ ​ ​ ​ ​ (dollars in thousands) ​ ​ Value ​ ​ Fair Value ​ ​ Level 1 ​ ​ Level 2 ​ ​ Level 3 Financial Assets ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 217,969 ​ $ 217,969 ​ $ 217,969 ​ $ — ​ $ — Mortgage notes receivable, net ​ 817,319 ​ 817,319 ​ — ​ — ​ 817,319 Interest and fees receivable ​ 8,986 ​ 8,986 ​ — ​ 8,986 ​ — Investment in real property, net ​ 3,690 ​ 3,690 ​ — ​ — ​ 3,690 Financial Liabilities ​ ​ ​ ​ ​ Accounts payable and accrued liabilities (1) ​ $ 4,494 ​ $ 4,494 ​ $ — ​ $ 2,148 ​ $ 2,346 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2019 ​ Fair Value Measurements Using ​ ​ ​ Carrying ​ ​ Estimated ​ ​ ​ ​ ​ ​ ​ ​ ​ (dollars in thousands) ​ ​ Value ​ ​ Fair Value ​ ​ Level 1 ​ ​ Level 2 ​ ​ Level 3 Financial Assets ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 238,214 ​ $ 238,214 ​ $ 238,214 ​ $ — ​ $ — Mortgage notes receivable, net ​ 821,589 ​ 821,589 ​ — ​ — ​ 821,589 Interest and fees receivable ​ 4,108 ​ 4,108 ​ — ​ 4,108 ​ — Investment in real property, net ​ 5,837 ​ 5,837 ​ — ​ — ​ 5,837 Financial Liabilities ​ ​ ​ ​ ​ Accounts payable and accrued liabilities (1) ​ $ 8,415 ​ $ 8,415 ​ $ — ​ $ 2,923 ​ $ 5,492 (1) Includes the level 3 valuation of the optional subscription liability derivative measured at fair value on a recurring basis.
Schedule of valuation methodologies and inputs used for assets that are measured at fair value	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 3 ​ Valuation ​ Unobservable ​ Range of (dollars in thousands) ​ ​ June 30, 2020 ​ December 31, 2019 ​ technique ​ inputs ​ inputs ​ Optional subscription liability (1) $ 2,346 ​ $ 5,492 Valuation model ​ Refer to Note 7 for assumptions ​ 0 - 5 % Real property (2) ​ 3,690 ​ ​ 5,837 Collateral valuations ​ Discount to appraised value based on comparable market prices ​ 0 - 10 % Non-performing and impaired loans, net of allowance for loan losses (3) ​ 211,467 ​ ​ 28,853 Collateral valuations ​ Discount to appraised value based on comparable market prices ​ 0 - 10 % Total $ 217,503 ​ $ 40,182 ​ ​ ​ ​ ​ (1) Optional subscription liability derivative measured at fair value on a recurring basis. (2) Real estate property is stated at lower of cost or fair value, a non-recurring measurement of fair value. (3) Includes non-accrual and impaired loans, net of allowance for loss on loans deemed to be impaired. For our 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 non-performing and impaired loans, net of the allowance for loan losses, which approximates fair value.

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 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 ​ 209 Intangible assets, net $ 791
Schedule of future amortization expense	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ended December 31, (dollars in thousands) 2020 2021 2022 Estimated future intangible amortization expense ​ $ 168 ​ $ 333 ​ $ 290

Stockholders' Equity and Memb_2

Stockholders' Equity and Members' Equity (Tables)	6 Months Ended
	Jun. 30, 2020
Stockholders' Equity and Members' Equity
Schedule of assumptions used in estimating fair value of derivative liability	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of June 30, 2020 As of December 31, 2019 Expected volatility ​ 64.0 % ​ 13.0 % Expected dividend yield ​ 7.6 % ​ 7.3 % Expected life (in years) ​ 0.4 ​ 0.9 ​ Risk-free interest rate ​ 0.2 % ​ 1.6 %
Schedule of basic and diluted earnings per share	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended (dollars in thousands, except share and per share data): ​ June 30, 2020 ​ June 30, 2020 Basic Earnings ​ ​ Net income and Basic Earnings ​ $ 19,759 ​ $ 47,038 ​ ​ ​ ​ ​ ​ ​ Diluted Earnings ​ ​ ​ ​ Net income and Diluted Earnings ​ $ 19,759 ​ $ 47,038 Number of Shares: ​ ​ ​ Basic weighted-average shares of common stock outstanding ​ ​ 132,165,005 ​ ​ 132,120,290 Shares for warrants and restricted stock units ​ — ​ — Diluted weighted-average shares of common stock outstanding (1) ​ ​ 132,165,005 ​ ​ 132,120,290 Earnings Per Share Attributable to common stockholders ​ ​ Basic ​ $ 0.15 ​ $ 0.36 Diluted ​ $ 0.15 ​ $ 0.36 (1) We exclude 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 and 353,364 shares of unvested restricted stock awards, which are not included in the above calculation of diluted earnings per share because in doing so they would be anti-dilutive.

Equity Incentive Plan (Tables)

Equity Incentive Plan (Tables)	6 Months Ended
	Jun. 30, 2020
Equity Incentive Plan
Summary of the activity related to restricted stock	​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted Average ​ ​ ​ ​ Grant Date Fair ​ ​ Shares ​ Market Value Unvested RSUs outstanding as of January 1, 2020 334,928 ​ $ 11.08 Granted 186,759 ​ ​ 11.77 Vested (95,694) ​ ​ 11.08 Unvested RSUs outstanding as of March 31, 2020 425,993 ​ ​ ​ Granted 47,226 ​ ​ 9.64 Vested (119,855) ​ $ 11.08 Unvested RSUs outstanding as of June 30, 2020 353,364 ​ ​ ​

Commitments and contingencies (

Commitments and contingencies (Tables)	6 Months Ended
	Jun. 30, 2020
Commitments and contingencies.
Schedule of contractual obligations and commercial commitments	The following table illustrates our contractual obligations and commercial commitments by due date as of June 30, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less than 1 ​ ​ ​ ​ More than (dollars in thousands) ​ Total ​ year ​ 1-3 years ​ 3-5 years ​ 5 years Operating lease obligations ​ $ 12,076 ​ $ 647 ​ $ 1,879 ​ $ 1,993 ​ $ 7,557 Construction holdbacks ​ 260,401 ​ 230,435 ​ 29,966 ​ — ​ — Total ​ $ 272,477 ​ $ 231,082 ​ $ 31,845 ​ $ 1,993 ​ $ 7,557

Organization and business (Deta

Organization and business (Details)	6 Months Ended
	Jun. 30, 2020subsidiary
Organization and business
Number of Taxable REIT Subsidiaries	1

Summary of significant accoun_3

Summary of significant accounting policies - (Details)	2 Months Ended	3 Months Ended			6 Months Ended			10 Months Ended
	Dec. 31, 2019USD ($)loan	Jun. 30, 2020USD ($)loan	Jun. 30, 2019USD ($)		Jun. 30, 2020USD ($)segmentloan	Jun. 30, 2019USD ($)		Nov. 14, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial Designation, Predecessor and Successor [Fixed List]	Successor	Successor	Predecessor	[1]	Successor	Predecessor	[1]	Predecessor
Number of Reportable Segments | segment					1
Threshold Sweep Account Balance		$ 750,000			$ 750,000
Uninsured cash and cash equivalents balance	$ 236,700,000	216,400,000			216,400,000
Restricted cash	$ 0	$ 0			$ 0
Number of non performing loans | loan	2	1			1
Estimated Useful Lives of Intangible assets					3 years
Right-of-use asset		$ 400,000			$ 400,000
Lease Liability		400,000			400,000
Commissions paid to a related party		$ 0	$ 1,800,000		$ 0	$ 3,100,000
Provision for income taxes			$ 0			$ 0
Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Estimated Useful Lives of fixed assets					7 years
Contractual Rate					70.00%
Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
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	Jun. 30, 2020	Jun. 30, 2019	[1]	Jun. 30, 2020	Jun. 30, 2019	[1]	Nov. 14, 2019
Business Acquisition [Line Items]
Financial Designation, Predecessor and Successor [Fixed List]		Successor	Successor	Predecessor		Successor	Predecessor		Predecessor
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	Jun. 30, 2020	Jun. 30, 2019	[1]	Jun. 30, 2020	Jun. 30, 2019	[1]	Nov. 14, 2019
Business Acquisition [Line Items]
Financial Designation, Predecessor and Successor [Fixed List]		Successor	Successor	Predecessor		Successor	Predecessor		Predecessor
Cash	$ 102,200
Common stock	479,600
Total consideration paid	581,800
Goodwill		$ 131,965	$ 136,965			$ 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

Jun. 30, 2020

Mar. 31, 2020

Jun. 30, 2019

[1]

Jun. 30, 2020

Jun. 30, 2019

[1]

Jun. 30, 2020

Nov. 14, 2019

Jun. 30, 2020

Business Acquisition [Line Items]

Financial Designation, Predecessor and Successor [Fixed List]

Successor

Successor

Predecessor

Successor

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

$ 1,000

$ 6,000

$ 1,000

Goodwill, Period Increase (Decrease), Total

$ 5,000

$ 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) - USD ($) $ in Millions	2 Months Ended	3 Months Ended			6 Months Ended			10 Months Ended
	Dec. 31, 2019	Jun. 30, 2020	Jun. 30, 2019		Jun. 30, 2020	Jun. 30, 2019		Nov. 14, 2019
Loans and Leases Receivable Disclosure [Line Items]
Financial Designation, Predecessor and Successor [Fixed List]	Successor	Successor	Predecessor	[1]	Successor	Predecessor	[1]	Predecessor
Percentage of maximum loan to value ratio					65.00%
Percentage of maximum of amount of a single loan					10.00%
Percentage of maximum amount of loans to single borrower					15.00%
Monthly interest rate payment term					10 days
Percentage of minimum collateral ratio		65.00%			65.00%
Interest income mortgage notes receivable					$ 0
Principal outstanding on non accrual status	$ 32.9	$ 177			177
Average principal outstanding on non accrual status		164.6	$ 11		120.7	$ 11.1
Impaired Financing Receivable, Unpaid Principal Balance	$ 19.8	49.5			49.5
Impaired Financing Receivable, Average Recorded Investment		$ 43.8	$ 5.2		$ 35.8	$ 3.4
Maximum
Loans and Leases Receivable Disclosure [Line Items]
Interest rate (as a percent)		13.00%			13.00%
Term of mortgage notes receivable					18 months
Minimum
Loans and Leases Receivable Disclosure [Line Items]
Interest rate (as a percent)		10.00%			10.00%
Term of mortgage notes receivable					5 months
[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 ($)	2 Months Ended	3 Months Ended			6 Months Ended			10 Months Ended
	Dec. 31, 2019	Jun. 30, 2020	Jun. 30, 2019	[1]	Jun. 30, 2020	Jun. 30, 2019	[1]	Nov. 14, 2019
Loans and Leases Receivable Disclosure [Line Items]
Financial Designation, Predecessor and Successor [Fixed List]	Successor	Successor	Predecessor		Successor	Predecessor		Predecessor
Total loan commitments	$ 1,101,275,000	$ 1,121,521,000			$ 1,121,521,000
Construction holdbacks	253,708,000	260,401,000			260,401,000
Interest reserves	18,601,000	21,907,000			21,907,000
Private REIT participation	0	6,931,000			6,931,000
Total principal outstanding for our mortgage notes, receivable	828,966,000	832,282,000			832,282,000
Allowance for loan losses	4,096,000	6,795,000			6,795,000
Deferred fees	3,281,000	8,168,000			8,168,000
Mortgage notes receivable, net	$ 821,589,000	817,319,000			817,319,000
Sale Of Mortgage Notes Receivable, Construction Holdbacks		7,100,000			7,100,000
Sale Of Mortgage Notes Receivable, Interest Reserves		700,000			700,000
Broadmark Private REIT, LLC
Loans and Leases Receivable Disclosure [Line Items]
Equity investment		$ 0			$ 0
[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			6 Months Ended			10 Months Ended
	Dec. 31, 2019	Jun. 30, 2020	Jun. 30, 2019		Jun. 30, 2020	Jun. 30, 2019		Nov. 14, 2019
Mortgage notes receivable
Financial Designation, Predecessor and Successor [Fixed List]	Successor	Successor	Predecessor	[1]	Successor	Predecessor	[1]	Predecessor
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Financing Receivable, Allowance for Credit Loss, Beginning Balance		$ 7,182	$ 1,480		$ 4,096	$ 1,704		$ 1,704
Provision for loan losses (benefits)		309	297		3,931	73
Charge offs		(696)			(1,232)
Financing Receivable, Allowance for Credit Loss, Ending Balance	$ 4,096	$ 6,795	$ 1,777		$ 6,795	$ 1,777
[1]	Predecessor periods are combined as disclosed in Note 1.

Fair value measurements - Fair

Fair value measurements - Fair value of assets and liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Carrying Value
Financial Assets
Cash and cash equivalents	$ 217,969	$ 238,214
Mortgage notes receivable, net	817,319	821,589
Interest and fees receivable	8,986	4,108
Investment in real property, net	3,690	5,837
Financial Liabilities
Accounts payable and accrued liabilities	4,494	8,415
Estimated Fair Value
Financial Assets
Cash and cash equivalents	217,969	238,214
Mortgage notes receivable, net	817,319	821,589
Interest and fees receivable	8,986	4,108
Investment in real property, net	3,690	5,837
Financial Liabilities
Accounts payable and accrued liabilities	4,494	8,415
Level 1 | Estimated Fair Value
Financial Assets
Cash and cash equivalents	217,969	238,214
Level 2 | Estimated Fair Value
Financial Assets
Interest and fees receivable	8,986	4,108
Financial Liabilities
Accounts payable and accrued liabilities	2,148	2,923
Level 3 | Estimated Fair Value
Financial Assets
Mortgage notes receivable, net	817,319	821,589
Investment in real property, net	3,690	5,837
Financial Liabilities
Accounts payable and accrued liabilities	$ 2,346	$ 5,492

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			6 Months Ended			10 Months Ended
	Dec. 31, 2019USD ($)	Jun. 30, 2020USD ($)	Jun. 30, 2019	[1]	Jun. 30, 2020USD ($)	Jun. 30, 2019	[1]	Nov. 14, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Designation, Predecessor and Successor [Fixed List]	Successor	Successor	Predecessor		Successor	Predecessor		Predecessor
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	$ 40,182	$ 217,503			$ 217,503
Recurring | Equity Volatility | Warrant Liability | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range of inputs		0			0
Recurring | Equity Volatility | Warrant Liability | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range of inputs		5			5
Recurring | Level 3 | Warrant Liability
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	5,492	$ 2,346			$ 2,346
Non recurring | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range of inputs		0			0
Non recurring | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range of inputs		10			10
Non recurring | Real Property | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range of inputs		0			0
Non recurring | Real Property | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range of inputs		10			10
Non recurring | Defaulted and Impaired Loans | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range of inputs		0			0
Non recurring | Defaulted and Impaired Loans | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range of inputs		10			10
Non recurring | Level 3 | Real Property
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	5,837	$ 3,690			$ 3,690
Non recurring | Level 3 | Defaulted and Impaired Loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	$ 28,853	$ 211,467			$ 211,467
[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			6 Months Ended			10 Months Ended
	Dec. 31, 2019shares	Jun. 30, 2020shares	Jun. 30, 2019	[1]	Jun. 30, 2020USD ($)shares	Jun. 30, 2019	[1]	Nov. 14, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Designation, Predecessor and Successor [Fixed List]	Successor	Successor	Predecessor		Successor	Predecessor		Predecessor
Warrants outstanding (in shares) | shares	41.7	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					18 months
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			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					$ 3.1
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			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			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				6 Months Ended			10 Months Ended
	Dec. 31, 2019	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	[1]	Jun. 30, 2020	Jun. 30, 2019	[1]	Nov. 14, 2019
Finite-Lived Intangible Assets [Line Items]
Financial Designation, Predecessor and Successor [Fixed List]	Successor	Successor		Predecessor		Successor	Predecessor		Predecessor
Goodwill	$ 131,965	$ 136,965				$ 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			5,000
Goodwill		137,000				137,000
Amortization of intangible assets			$ 900
Acquired Intangibles, Gross		1,000				1,000
Less Accumulated Amortization		209				209
Acquired Intangibles, Net		$ 791				$ 791
Weighted average life remaining of the intangible assets						2 years 4 months 24 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			6 Months Ended			10 Months Ended
	Dec. 31, 2019	Jun. 30, 2020	Jun. 30, 2019	[1]	Jun. 30, 2020	Jun. 30, 2019	[1]	Nov. 14, 2019
Goodwill and Intangible Assets
Financial Designation, Predecessor and Successor [Fixed List]	Successor	Successor	Predecessor		Successor	Predecessor		Predecessor
Estimated future intangible amortization expense
2020		$ 168			$ 168
2021		333			333
2022		$ 290			$ 290
[1]	Predecessor periods are combined as disclosed in Note 1.

Stockholders' Equity and Memb_3

Stockholders' Equity and Members' Equity - Stock (Details)	2 Months Ended	3 Months Ended			6 Months Ended			10 Months Ended
	Dec. 31, 2019$ / sharesshares	Jun. 30, 2020$ / sharesshares	Jun. 30, 2019	[1]	Jun. 30, 2020Vote$ / sharesshares	Jun. 30, 2019	[1]	Nov. 14, 2019
Stockholders' Equity and Members' Equity
Financial Designation, Predecessor and Successor [Fixed List]	Successor	Successor	Predecessor		Successor	Predecessor		Predecessor
Common stock shares authorized (in shares)	500,000,000	500,000,000			500,000,000
Common stock par value (in dollars per share) | $ / shares	$ 0.001	$ 0.001			$ 0.001
Preferred stock shares authorized (in shares)	100,000,000	100,000,000			100,000,000
Preferred Stock, Par or Stated Value Per Share | $ / shares	$ 0.001	$ 0.001			$ 0.001
Number of votes per share | Vote					1
Common stock shares issued (in shares)	132,015,635	132,231,184			132,231,184
Common stock shares outstanding (in shares)	132,015,635	132,231,184			132,231,184
Preferred stock shares issued (in shares)	0	0			0
Preferred stock shares outstanding (in shares)	0	0			0
[1]	Predecessor periods are combined as disclosed in Note 1.

Stockholders' Equity and Memb_4

Stockholders' Equity and Members' Equity - Warrant (Details) - USD ($) $ / shares in Units, $ in Millions	2 Months Ended	3 Months Ended			6 Months Ended			10 Months Ended
	Dec. 31, 2019	Jun. 30, 2020	Jun. 30, 2019	[1]	Jun. 30, 2020	Jun. 30, 2019	[1]	Nov. 14, 2019
Class of Warrant or Right [Line Items]
Financial Designation, Predecessor and Successor [Fixed List]	Successor	Successor	Predecessor		Successor	Predecessor		Predecessor
Warrants outstanding (in shares)	41,700,000	41,700,000			41,700,000
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			15,600,000
Exercise price per share (in dollars per share)	$ 11.50	$ 11.50			$ 11.50
Farallon PIPE Warrants
Class of Warrant or Right [Line Items]
Warrants outstanding	$ 5.5	$ 2.3			$ 2.3
Private Placement Warrants
Class of Warrant or Right [Line Items]
Number of share per warrant	1	1			1
Warrants outstanding (in shares)	5,200,000	5,200,000			5,200,000
Exercise price per share (in dollars per share)	$ 11.50	$ 11.50			$ 11.50
[1]	Predecessor periods are combined as disclosed in Note 1.

Stockholders' Equity and Memb_5

Stockholders' Equity and Members' Equity - Optional Subscription (Details)	2 Months Ended	3 Months Ended			6 Months Ended			10 Months Ended
	Dec. 31, 2019Y	Jun. 30, 2020Y	Jun. 30, 2019	[1]	Jun. 30, 2020Y	Jun. 30, 2019	[1]	Nov. 14, 2019
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Financial Designation, Predecessor and Successor [Fixed List]	Successor	Successor	Predecessor		Successor	Predecessor		Predecessor
Expected volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	13	64			64
Expected dividend yield
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	7.3	7.6			7.6
Expected life (in years)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.9	0.4			0.4
Risk-free interest rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	1.6	0.2			0.2
[1]	Predecessor periods are combined as disclosed in Note 1.

Stockholders' Equity and Memb_6

Stockholders' Equity and Members' Equity - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands		2 Months Ended	3 Months Ended			6 Months Ended			10 Months Ended
		Dec. 31, 2019	Jun. 30, 2020	Jun. 30, 2019	[1]	Jun. 30, 2020	Jun. 30, 2019	[1]	Nov. 14, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Financial Designation, Predecessor and Successor [Fixed List]		Successor	Successor	Predecessor		Successor	Predecessor		Predecessor
Basic Earnings
Net income and Basic Earnings			$ 19,759			$ 47,038
Diluted Earnings
Net income and Diluted Earnings			$ 19,759			$ 47,038
Weighted average number of common shares:
Basic weighted-average shares of common stock outstanding			132,165,005			132,120,290
Shares for warrants and restricted stock units			0			0
Diluted weighted-average shares of common stock outstanding			132,165,005			132,120,290
Earnings Per Share Attributable to common stockholders
Basic	[2]		$ 0.15			$ 0.36
Diluted	[2]		$ 0.15			$ 0.36
Public and Private Warrants
Earnings Per Share Attributable to common stockholders
Antidilutive securities						15,600,000
Restricted Stock
Earnings Per Share Attributable to common stockholders
Antidilutive securities						353,364
[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			6 Months Ended			10 Months Ended
	Dec. 31, 2019	Jun. 30, 2020	Jun. 30, 2019	[1]	Jun. 30, 2020	Jun. 30, 2019	[1]	Nov. 14, 2019
Income Taxes
Financial Designation, Predecessor and Successor [Fixed List]	Successor	Successor	Predecessor		Successor	Predecessor		Predecessor
Uncertain tax positions		$ 0			$ 0
Amount accrued for penalties or interest		$ 0			$ 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				6 Months Ended			10 Months Ended
	Dec. 31, 2019	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	[1]	Jun. 30, 2020	Jun. 30, 2019		Nov. 14, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Financial Designation, Predecessor and Successor [Fixed List]	Successor	Successor		Predecessor		Successor	Predecessor	[1]	Predecessor
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSU's granted		47,226	186,759				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	4,569,378	4,431,087				4,431,087
2019 Stock Incentive Plan | Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSU's granted						568,913
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
[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				6 Months Ended			10 Months Ended
	Dec. 31, 2019	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	[1]	Jun. 30, 2020	Jun. 30, 2019		Nov. 14, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Financial Designation, Predecessor and Successor [Fixed List]	Successor	Successor		Predecessor		Successor	Predecessor	[1]	Predecessor
Restricted stock units
Shares
Outstanding at the beginning		425,993	334,928			334,928
Granted		47,226	186,759				150
Vested		(119,855)	(95,694)
Outstanding at the end	334,928	353,364	425,993			353,364
Weighted Average Grant Date Fair Market Value
Outstanding at the beginning			$ 11.08			$ 11.08
Granted		$ 9.64	11.77				$ 11,717
Vested		$ 11.08	$ 11.08
Outstanding at the end	$ 11.08
[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				6 Months Ended			10 Months Ended
	Dec. 31, 2019	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	[1]	Jun. 30, 2020	Jun. 30, 2019		Nov. 14, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Financial Designation, Predecessor and Successor [Fixed List]	Successor	Successor		Predecessor		Successor	Predecessor	[1]	Predecessor
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation expense		$ 1				$ 1.9
Unrecognized compensation cost related to unvested stock-based compensation arrangements		$ 3.1				$ 3.1
Weighted-average recognition period						1 year 3 months 18 days
RSU's granted		47,226	186,759				150
Share based compensation, settled units		$ 0				$ 0
Fair value of grants		$ 9.64	$ 11.77				$ 11,717
Vesting period							48 months
[1]	Predecessor periods are combined as disclosed in Note 1.

Commitments and contingencies -

Commitments and contingencies - Contractual Obligations (Details) $ in Thousands	Jun. 30, 2020USD ($)
Other Commitments [Line Items]
Less than 1 year	$ 231,082
1-3 years	31,845
3-5 years	1,993
More than 5 years	7,557
Total	272,477
Operating lease obligations
Other Commitments [Line Items]
Less than 1 year	647
1-3 years	1,879
3-5 years	1,993
More than 5 years	7,557
Total	12,076
Construction holdbacks
Other Commitments [Line Items]
Less than 1 year	230,435
1-3 years	29,966
Total	$ 260,401

Commitments and contingencies_2

Commitments and contingencies (Details)	2 Months Ended	3 Months Ended			6 Months Ended			10 Months Ended
	Dec. 31, 2019	Jun. 30, 2020	Jun. 30, 2019	[1]	Jun. 30, 2020statecounty	Jun. 30, 2019	[1]	Nov. 14, 2019	Mar. 18, 2020
Concentration Risk [Line Items]
Financial Designation, Predecessor and Successor [Fixed List]	Successor	Successor	Predecessor		Successor	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					46.70%
[1]	Predecessor periods are combined as disclosed in Note 1.

Related party transactions (Det

Related party transactions (Details) - USD ($)	2 Months Ended	3 Months Ended			6 Months Ended			10 Months Ended
	Dec. 31, 2019	Jun. 30, 2020	Jun. 30, 2019	[1]	Jun. 30, 2020	Jun. 30, 2019	[1]	Nov. 14, 2019
Related Party Transaction [Line Items]
Financial Designation	Successor	Successor	Predecessor		Successor	Predecessor		Predecessor
Warrants outstanding (in shares)	41,700,000	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					$ 75,000,000
Reference Price		$ 10.45352229			$ 10.45352229
Common stock exercisable term					365 days
Warrants outstanding (in shares)		7,174,163			7,174,163
Class of Warrant or Right, Amendment Fee Price of Warrants or Rights		$ 1.60			$ 1.60
Farallon Capital Management, L.L.C | Farallon Capital Management, L.L.C
Related Party Transaction [Line Items]
Ownership percentage		5.00%			5.00%
Broadmark Private REIT, LLC
Related Party Transaction [Line Items]
Equity investment		$ 0			$ 0
Private REIT's assets under management		$ 12,400,000			$ 12,400,000
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) - USD ($) $ / shares in Units, $ in Millions	Aug. 10, 2020	Jul. 13, 2020	Dec. 31, 2019	Jun. 30, 2020	Jun. 30, 2019	[1]	Jun. 30, 2020	Jun. 30, 2019	[1]	Nov. 14, 2019	Aug. 07, 2020
Subsequent Event [Line Items]
Financial Designation, Predecessor and Successor [Fixed List]			Successor	Successor	Predecessor		Successor	Predecessor		Predecessor
Subsequent Event
Subsequent Event [Line Items]
Common stock dividend declared	$ 0.06	$ 0.06
Financing Receivable, Loan in Process											$ 88
[1]	Predecessor periods are combined as disclosed in Note 1.