Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 25, 2021 | Jun. 30, 2020 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | NexPoint Real Estate Finance, Inc. | ||
Entity Central Index Key | 0001786248 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Common Stock, Shares Outstanding | 5,022,578 | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity File Number | 001-39210 | ||
Entity Tax Identification Number | 84-2178264 | ||
Entity Address, Address Line One | 300 Crescent Court | ||
Entity Address, Address Line Two | Suite 700 | ||
Entity Address, City or Town | Dallas | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75201 | ||
City Area Code | (972) | ||
Local Phone Number | 628-4100 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Interactive Data Current | Yes | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
ICFR Auditor Attestation Flag | false | ||
Entity Public Float | $ 83,031,668.28 | ||
Documents Incorporated by Reference | None. | ||
Common Stock, Par Value $0.01 Per Share | |||
Document Information [Line Items] | |||
Trading Symbol | NREF | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Security Exchange Name | NYSE | ||
8.50% Series A Cumulative Redeemable Preferred Stock | |||
Document Information [Line Items] | |||
Trading Symbol | NREF-PRA | ||
Title of 12(b) Security | 8.50% Series A Cumulative Redeemable Preferred Stock, par value 0.01 per share | ||
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 30,241 | |
Restricted cash | 3,230 | |
Loans, held-for-investment, net | 127,777 | |
Common stock, at fair value | 44,626 | |
Mortgage loans, held-for-investment, net | 918,114 | |
Accrued interest and dividends | 5,078 | |
Mortgage loans held in variable interest entities, at fair value | 5,007,515 | |
CMBS structured pass through certificates, at fair value (Note 8) | 38,984 | |
Accounts receivable and other assets | 745 | |
TOTAL ASSETS | 6,176,310 | |
Liabilities: | ||
Secured financing agreements, net | 840,453 | |
Master repurchase agreements | 161,465 | |
Unsecured notes, net | 34,960 | |
Accounts payable and other accrued liabilities | 1,779 | |
Accrued interest payable | 2,311 | |
Bonds payable held in variable interest entities, at fair value | 4,731,429 | |
Total Liabilities | 5,772,397 | |
Redeemable noncontrolling interests in the OP | 275,670 | |
Stockholders' Equity: | ||
Preferred stock, $0.01 par value: 100,000,000 shares authorized; 2,000,000 and 0 shares issued and 1,645,000 and 0 shares outstanding, respectively | 16 | |
Common stock, $0.01 par value: 500,000,000 shares authorized; 5,350,000 and 10 shares issued and 5,022,578 and 10 shares outstanding, respectively | 50 | |
Additional paid-in capital | 138,043 | |
Retained earnings | 3,485 | |
Preferred stock held in treasury at cost; 355,000 shares | (8,567) | |
Common stock held in treasury at cost; 327,422 shares | (4,784) | |
Total Stockholders' Equity | 128,243 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 6,176,310 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 2,000,000 | 0 |
Preferred stock, shares outstanding | 1,645,000 | 0 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares, issued | 5,350,000 | 10 |
Common stock, shares, outstanding | 5,022,578 | 10 |
Common stock, par value | $ 0.01 | $ 0.01 |
Treasury stock, preferred, shares | 355,000 | |
Treasury stock, common, shares | 327,422 |
CONSOLIDATED STATEMENT OF OPERA
CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)$ / sharesshares | |
Net interest income | |
Interest income | $ 38,978 |
Interest expense | (21,312) |
Total net interest income | 17,666 |
Other income (loss) | |
Change in net assets related to consolidated CMBS variable interest entities | 19,932 |
Change in unrealized loss on CMBS structured pass through certificates | (49) |
Loan loss provision | (320) |
Dividend income, net | 6,309 |
Realized losses | (493) |
Other income | 373 |
Total other income | 25,752 |
Operating expenses | |
General and administrative expenses | 3,382 |
Loan servicing fees | 4,314 |
Management fees | 1,552 |
Total operating expenses | 9,248 |
Net income | 34,170 |
Preferred stock dividends | (1,748) |
Net income attributable to redeemable noncontrolling interests | (21,323) |
Net income attributable to common stockholders | $ 11,099 |
Weighted-average common shares outstanding - basic | shares | 5,206 |
Weighted-average common shares outstanding - diluted | shares | 18,648 |
Earnings per share - basic | $ / shares | $ 2.13 |
Earnings per share - diluted | $ / shares | 1.74 |
Dividends declared per common share | $ / shares | $ 1.4198 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - 12 months ended Dec. 31, 2020 - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings Less Dividends | Common Stock Held in Treasury at Cost | Preferred Stock Held in Treasury at Cost |
Beginning Balance, Values at Dec. 31, 2019 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Beginning Balance, Shares at Dec. 31, 2019 | 0 | 0 | |||||
Issuance of common stock through public offering, net | 91,488 | $ 54 | 91,434 | ||||
Issuance of common stock through public offering, net, shares | 5,350,000 | ||||||
Issuance of preferred stock through public offering, net | 46,081 | $ 20 | 46,061 | ||||
Issuance of preferred stock through public offering, net, shares | 2,000,000 | ||||||
Vesting of stock-based compensation | 548 | 548 | |||||
Repurchase of common stock | $ (4,788) | $ (4) | (4,784) | ||||
Repurchase of common stock, shares | (327,422) | (327,422) | |||||
Repurchase of preferred stock | $ (8,571) | $ (4) | (8,567) | ||||
Repurchase of preferred stock, shares | (355,000) | ||||||
Net income attributable to preferred stockholders | 1,748 | 1,748 | |||||
Net income attributable to common stockholders | 11,099 | 11,099 | |||||
Preferred stock dividends declared | (1,748) | (1,748) | |||||
Common stock dividends declared | (7,614) | (7,614) | |||||
Ending Balance, Values at Dec. 31, 2020 | $ 128,243 | $ 16 | $ 50 | $ 138,043 | $ 3,485 | $ (4,784) | $ (8,567) |
Ending balance, Shares at Dec. 31, 2020 | 1,645,000 | 5,022,578 |
CONSOLIDATED STATEMENT OF STO_2
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical) | 12 Months Ended |
Dec. 31, 2020$ / shares | |
Statement Of Stockholders Equity [Abstract] | |
Dividends declared per preferred stock | $ 0.5313 |
Dividends declared per common share | $ 1.4198 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Cash flows from operating activities | |
Net income | $ 34,170 |
Adjustments to reconcile net income to net cash provided by operating activities: | |
Amortization of premiums | 8,280 |
Accretion of discounts | (3,160) |
Loan loss provision, net | 320 |
Net change in unrealized gain on investments held at fair value | (3,981) |
Net realized losses | 493 |
Vesting of stock-based compensation | 548 |
Changes in operating assets and liabilities: | |
Accrued interest and dividends receivable | (6,001) |
Accounts receivable and other assets | (745) |
Accrued interest payable | 2,311 |
Accounts payable, accrued expenses and other liabilities | 667 |
Net cash provided by operating activities | 32,902 |
Cash flows from investing activities | |
Proceeds from payments received on mortgage loans held in variable interest entities | 208,507 |
Proceeds from payments received on mortgage loans held for investment | 22,449 |
Purchases of loans, held-for-investment, net | (108,610) |
Purchases of common stock | (87) |
Purchases of CMBS structured pass through certificates, at fair value | (40,200) |
Purchases of CMBS securitizations held in variable interest entities, at fair value | (150,320) |
Net cash used in investing activities | (68,261) |
Cash flows from financing activities | |
Principal repayments on borrowings under secured financing agreements | (8,225) |
Distributions to bondholders of variable interest entities | (192,908) |
Borrowings under master repurchase agreements | 163,473 |
Principal repayments on borrowings under master repurchase agreements | (2,008) |
Proceeds received on borrowings under secured financing agreements | 59,914 |
Proceeds received from unsecured notes offering, net | 34,904 |
Borrowings under bridge facility | 86,000 |
Bridge facility payments | (181,000) |
Repurchase of preferred stock | (8,571) |
Repurchase of common stock | (4,788) |
Dividends paid to common stockholders | (7,376) |
Dividends paid to preferred stockholders | (874) |
Distributions to redeemable noncontrolling interests in the OP | (19,063) |
Contributions from noncontrolling interests | 11,783 |
Net cash provided by financing activities | 68,830 |
Net increase in cash, cash equivalents and restricted cash | 33,471 |
Cash, cash equivalents and restricted cash, end of period | 33,471 |
Supplemental Disclosure of Cash Flow Information | |
Interest paid | 23,221 |
Supplemental Disclosure of Noncash Activities (Note 2) | |
Contributions from noncontrolling interests, including consolidation of the associated mortgage loans held in variable interest entities | 2,797,735 |
Other assets acquired from contributions from noncontrolling interests | 3,616 |
Assumed debt on contributions from noncontrolling interests, including consolidation of the associated bonds payable held in variable interest entities | (2,539,724) |
Consolidation of mortgage loans and bonds payable held in variable interest entities | 3,179,620 |
Preferred stock investment conversion to common stock (Note 7) | 41,881 |
Stock dividends receivable conversion to common stock (Note 7) | 2,658 |
Increase in dividends payable upon vesting of restricted stock units | 238 |
Stock dividends received | 1,881 |
Increase in dividends payable to preferred stockholders | 874 |
Common Stock | |
Cash flows from financing activities | |
Proceeds from the issuance of stock through public offering, net of offering costs | 91,488 |
Preferred Stock | |
Cash flows from financing activities | |
Proceeds from the issuance of stock through public offering, net of offering costs | $ 46,081 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Description of Business | 1. Organization and Description of Business NexPoint Real Estate Finance, Inc. (the “Company”, “we”, “our”) is a commercial mortgage real estate investment trust (“REIT”) incorporated in Maryland on June 7, 2019. The Company intends to elect to be treated as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”), commencing with our taxable year ending December 31, 2020. The Company is focused on originating, structuring and investing in first-lien mortgage loans, mezzanine loans, preferred equity and common stock, as well as multifamily commercial mortgage-backed securities securitizations (“CMBS securitizations”) The Company commenced operations on February 11, 2020 upon the closing of its initial public offering of shares of its common stock (the “IPO”). Prior to the closing of the IPO, the Company engaged in a series of transactions through which it acquired an initial portfolio consisting of senior pooled mortgage loans backed by single family rental (“SFR”) properties (the “SFR Loans”), the junior most bonds of multifamily CMBS securitizations (the “CMBS B-Pieces”), mezzanine loan and preferred equity investments in real estate companies and properties in other structured real estate investments within the multifamily, SFR and self-storage asset classes (the “Initial Portfolio”). The Initial Portfolio was acquired from affiliates (the “Contribution Group”) of NexPoint Advisors, L.P. (our “Sponsor”), pursuant to a contribution agreement with the Contribution Group through which the Contribution Group contributed their interest in the Initial Portfolio to special purpose entities (“SPEs”) owned by the Subsidiary OPs, in exchange for SubOP Units (the “Formation Transaction”). The Company is externally managed by NexPoint Real Estate Advisors VII, L.P. (the “Manager”), through a management agreement dated February 6, 2020 and amended as of July 17, 2020, for a three-year term set to expire on February 6, 2023 (as amended, the “Management Agreement”), by and between the Company and the Manager. The Manager conducts substantially all of the Company’s operations and provides asset management services for its real estate investments. The Company expects it will only have accounting employees while the Management Agreement is in effect. All of the Company’s investment decisions are made by the Manager, subject to general oversight by the Manager’s investment committee and the Company’s board of directors (the “Board”). The Manager is wholly owned by our Sponsor. The Company’s primary investment objective is to generate attractive, risk-adjusted returns for stockholders over the long term. The Company intends to achieve this objective primarily by originating, structuring and investing in first-lien mortgage loans, mezzanine loans, preferred equity and common stock, as well as multifamily CMBS securitizations. The Company concentrates on investments in real estate sectors where our senior management team has operating expertise, including in the multifamily, SFR, self-storage, hospitality and office sectors predominantly in the top 50 metropolitan statistical areas. In addition, the Company targets lending or investing in properties that are stabilized or have a “light transitional” business plan, meaning a property that requires limited deferred funding to support leasing or ramp-up of operations and for which most capital expenditures are for value-add improvements. Through active portfolio management the Company seeks to take advantage of market opportunities to achieve a superior portfolio risk-mix that delivers attractive total returns. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Accounting The accompanying consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States (“GAAP”). GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the dates of the consolidated financial statements and the amounts of revenues and expenses during the reporting periods. Actual amounts realized or paid could differ from those estimates. All significant intercompany accounts and transactions have been eliminated in consolidation. There have been no significant changes to the Company’s significant accounting policies during the year ended December 31, 2020. The accompanying consolidated financial statements have been prepared according to the rules and regulations of the SEC. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted according to such rules and regulations, although management believes that the disclosures are adequate to make the information presented not misleading. Use of Estimates and Assumptions The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. It is at least reasonably possible that these estimates could change in the near term. Estimates are inherently subjective in nature and actual results could differ from our estimates and the differences could be material. In December 2019, a novel coronavirus, which causes respiratory illness and spreads from person to person (COVID-19), was first identified during an investigation into an outbreak in Wuhan, China. The first case of COVID-19 in the U.S. was reported on January 20, 2020. On March 11, 2020, the World Health Organization declared COVID-19 a pandemic, and on March 13, 2020, the U.S. declared a national emergency with respect to COVID-19. Over the ensuing weeks, former President Trump and the task force that was set up to deal with preparations across the country announced sweeping and unprecedented actions to help slow the spread of the virus. The former President’s task force recommended all citizens practice “social distancing” and other protocols to limit interaction between individuals for a period of 15 days, a recommendation which was later expanded to 30 days and ultimately expired on April 30, 2020. While many of these restrictions and forced closures were initially lifted in varying degrees beginning in May 2020, a resurgence of COVID-19 cases in the United States caused many cities and states to reinstitute such restrictions and closures. In addition, the U.S. government imposed restrictions on the entry of certain travelers into the United States, and the U.S./Mexican and U.S./Canadian borders remain temporarily closed for all non-essential travel to limit the spread of the virus across countries. The Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) imposed a moratorium on evictions for tenants meeting certain requirements, including most federal housing assistance, in cases of nonpayment of rent and the charging of late fees. The CARES Act moratorium expired on July 25, 2020. On August 8, 2020, former President Trump issued an executive order instructing public health officials to consider measurers to temporarily halt evictions. On September 4, 2020, the U.S. Centers for Disease Control and Prevention (the “CDC”) issued an order imposing a new moratorium that temporarily halted evictions for tenants meeting certain requirements, including inability to pay, in cases of nonpayment of rent and the charging of late fees through December 31, 2020. The CDC order was extended through March 31, 2021. As of January 29, 2021, according to the CDC, over 4.7 million individuals in the U.S. have been fully vaccinated for COVID-19, and the U.S. is expected to continue to roll out vaccines across the nation, prioritizing frontline and essential workers, the elderly, and individuals considered high risk. However, the initial rollout of vaccine distribution has encountered significant delays, and uncertainties remain as to the amount of the vaccine available for distribution, the logistics of implementing a national vaccine program, and the overall efficacy of the vaccines once widely administered, especially as new strains of COVID-19 are discovered and the level of resistance these new strains may have to the existing vaccines, if any, remains unknown. On January 14, 2021, President Biden proposed a $1.9 trillion “American Rescue Plan” to combat the pandemic and stimulate the economy. The legislative proposal would provide additional provisions for increased unemployment benefits, rental assistance, small businesses, state and local governments, educational institutions, and substantial funding toward accelerated distribution of vaccinations and COVID-19 testing, as well as direct payments of $1,400 to all eligible persons. The American Rescue Plan is the first of two major spending initiatives expected to be proposed by President Biden. Collectively, these actions, while for the benefit of public health, have had and will likely continue to have a significant impact on the American economy. The U.S. stock market initially experienced historic declines over an extraordinarily short period of time. Certain industries such as airlines, lodging, entertainment, gaming, cruise ships, and industries closely associated with the foregoing have seen, and continue to see, unprecedented declines in business. Potential ineffectiveness or delay of such relief measures could lead to further deterioration of economic conditions, higher unemployment rates, and prolonged recession, which in turn could materially affect our performance, financial condition, results of operations, and cash flows. COVID-19 may also negatively and materially impact estimates and assumptions used by the Company including, but not limited to, fair value estimates and estimates of an allowance for loan losses. See “Item 1A. Risk Factors —Risk Factors Related to Our Business—The current COVID-19 pandemic and the future outbreak of other highly infectious or contagious diseases could materially and adversely impact or disrupt our financial condition, results of operations, cash flows and performance The Company is closely monitoring the impact of the COVID-19 pandemic on all aspects of our business. As of December 31, 2020, there have been two forbearance requests approved in the CMBS B-Piece portfolio, representing 0.8% of the Company’s consolidated unpaid principal balance outstanding. Additionally, there were nine forbearance requests approved in our SFR loan book. However, as of December 31, 2020, these loans were no longer in forbearance. Despite these forbearance requests, the master servicers continued to make payments to the Company for the portion of our CMBS B-Piece and SFR Loans that requested forbearance, and were approved by Freddie Mac, during the entire forbearance period. These agreed upon forbearance requests include both principal and interest payments for three months, with an option to the borrower to extend an additional three months, and require the borrower to repay Freddie Mac within twelve months of the end of the forbearance period. Principles of Consolidation The Company accounts for subsidiary partnerships in which it holds an ownership interest in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, Consolidation Variable Interest Entities The Company evaluates all of its interests in VIEs for consolidation. When the Company’s interests are determined to be variable interests, the Company assesses whether it is deemed to be the primary beneficiary of the VIE. The primary beneficiary of a VIE is required to consolidate the VIE. FASB ASC Topic 810, Consolidation CMBS Trusts The Company consolidates the trusts that issue beneficial ownership interests in mortgage loans secured by commercial real estate (commonly known as CMBS) when the Company holds a variable interest in, and management considers the Company to be the primary beneficiary of those trusts. Management believes the performance of the assets that underlie CMBS issuances most significantly impact the economic performance of the trust, and the primary beneficiary is generally the entity that conducts activities that most significantly impact the performance of the underlying assets. In particular, the most subordinate tranches of CMBS expose the holder to greater variability of economic performance when compared to more senior tranches since the subordinate tranches absorb a disproportionately higher amount of the credit risk related to the underlying assets. Generally, a trust designates the most junior subordinate tranche outstanding as the controlling class, which entitles the holder of the controlling class to unilaterally appoint, remove and replace the special servicer for the trust. For the CMBS that the Company consolidates, the Company owns 100% of the most subordinate tranche of the securities issued by the trusts, which include the controlling class, and has the ability to remove and replace the special servicer. On the Consolidated Balance Sheets as of December 31, 2020, the Company consolidated the five Freddie Mac K-Series securitization entities (the “CMBS Entities”) that were determined to be VIEs and for which the Company is the primary beneficiary. The CMBS Entities are independent of the Company, and the assets and liabilities of the CMBS Entities are not owned by and are not legal obligations of ours. Our exposure to the CMBS Entities is through the subordinated tranches. For financial reporting purposes, the underlying mortgage loans held by the trusts are recorded as a separate line item on the balance sheet under “Mortgage loans held in variable interest entities, at fair value.” The liabilities of the trusts consist solely of obligations to the CMBS holders of the consolidated trusts, excluding the CMBS B-Piece investments held by the Company. The liabilities are presented as “Bonds payable held in variable interest entities, at fair value” on the Consolidated Balance Sheets. The CMBS B-Pieces held by the Company and the interest earned thereon are eliminated in consolidation. Management has elected the measurement alternative in ASC 810 to report the fair value of the assets and liabilities of the consolidated CMBS Entities in order to provide users of the financial statements with better information regarding the effects of credit risk and other market factors on the CMBS B-Pieces owned by the Company. Management has elected to show interest income and interest expense related to the CMBS Entities in aggregate with the change in fair value as “Change in net assets related to consolidated CMBS variable interest entities.” The residual difference between the fair value of the CMBS Entities’ assets and liabilities represents the Company’s investments in the CMBS B-Pieces. Investment in subsidiaries The Company conducts its operations through the OP, which acts as the general partner of the Subsidiary OPs, which own investments through limited liability companies that are SPEs and as the sole member of the Mezz LLC, which owns investments directly. The Company is the majority limited partner of the OP, holds approximately 50.28% of the OP Units in the OP and has the ability to remove the general partner of the OP with or without cause, and as such, consolidates the OP. The Company consolidates the SPEs in which it has a controlling financial interest as well as any VIEs where it is the primary beneficiary. All of the investments the SPEs own are consolidated in the consolidated financial statements. Generally, the assets of each entity can only be used to settle obligations of that particular entity, and the creditors of each entity have no recourse to the assets of other entities or the Company notwithstanding equity pledges various lenders may have in certain entities. Redeemable Noncontrolling Interests Noncontrolling interests represent the ownership interests in consolidated subsidiaries held by entities other than the Company. Those noncontrolling interests that the holder is allowed to redeem before liquidation or termination of the entity that issued those interests are considered redeemable noncontrolling interests. The Subsidiary OPs have redeemable noncontrolling interests classified on the Consolidated Balance Sheets as temporary equity in accordance with ASC 480. This is presented as “Redeemable noncontrolling interests in the OP” on the Consolidated Balance Sheets and their share of “Net Income” as “Net Income attributable to redeemable noncontrolling interests” in the accompanying Consolidated Statement of Operations. The redeemable noncontrolling interests were initially measured at the fair value of the contributed assets in accordance with ASC 805-50. The redeemable noncontrolling interests will be adjusted to their redemption value if such value exceeds the carrying value of the redeemable noncontrolling interests. Capital contributions, distributions and profits and losses are allocated to the redeemable noncontrolling interests in accordance with the terms of the partnership agreements of the Subsidiary OPs. Acquisition Accounting The Company accounts for the assets acquired in the Formation Transaction as asset acquisitions pursuant to ASC 805-50 rather than as business combinations. Substantially all of the fair value of the assets acquired are concentrated in a group of similar identifiable assets, i.e. the SFR Loans represent one acquisition of similar identifiable assets, and the acquisition of the CMBS B-Pieces represents an additional acquisition of similar identifiable assets. Additionally, there were no corresponding in-place workforce, servicing platforms or any other item that could be considered an input or process associated with these assets. As such, the SFR Loans and the CMBS B-Pieces do not constitute businesses as defined by ASC 805-10-55. As the investments in the Initial Portfolio were contributed to the Subsidiary OPs in a non-cash transaction, cost is based on the fair value of the assets acquired. Formation Transaction The Company commenced operations on February 11, 2020 upon the closing of its IPO. Prior to the closing of the IPO, the Company engaged in the Formation Transaction through which it acquired the Initial Portfolio consisting of SFR Loans, CMBS B-Pieces, mezzanine loan and preferred equity investments in real estate companies and properties in other structured real estate investments within the multifamily, SFR and self-storage asset classes. The Initial Portfolio was acquired from the Contribution Group, pursuant to a contribution agreement through which the Contribution Group contributed their interest in the Initial Portfolio to SPEs owned by the Subsidiary OPs, in exchange for SubOP Units. The assets and liabilities constituting the Initial Portfolio were contributed at fair value using a cutoff date of January 31, 2020. The mezzanine loan, preferred stock and preferred equity investments were valued using a discounted cash flow model using discount rates negotiated with the Contribution Group. A third-party valuation firm was utilized to value the SFR Loans using the income approach in accordance with ASC Topic 820. The income approach utilizes a discounted cash flow method to present value the expected future cash flows. The future cash flows were projected based on the terms of the loans including interest rates, current balances and servicing fees. The future cash flows depend substantially on various other assumptions such as prepayment rates, prepayment charges, default rates, expected loss given default (severity), and other inputs. The Credit Facility (defined below) contributed along with the SFR Loans was also valued using the income approach as previously described. The equity and financial liabilities of the consolidated CMBS B-Pieces were valued using broker quotes (see “—Valuation Methodologies” below for more information on our valuation methodologies). The Bridge Facility (defined below) was originated shortly before the closing of the IPO and was contributed at its carrying value, which approximated fair value. The fair values of the contributed cash and accrued interest and dividends approximated their carrying values because of the short-term nature of these instruments. The fair values of the contributed assets described above were agreed upon by the Contribution Group and used to determine the number of SubOP Units issued. Any purchase premiums or discounts are amortized over the expected life of the investment. The following table shows the par values, fair values and purchase premiums (discounts) of the Initial Portfolio as of February 11, 2020, the closing date of the IPO: Par value Fair Value Premium (Discount) Assets Cash $ 302 $ 302 $ — Loans, held-for-investment, net 22,127 22,282 155 Preferred stock 40,000 40,400 400 Mortgage loans, held-for-investment, net 863,564 934,918 71,354 Accrued interest and dividends 3,616 3,616 — Mortgage loans held in variable interest entities, at fair value 1,790,228 1,790,135 (93 ) $ 2,719,837 $ 2,791,653 $ 71,816 Liabilities Credit facility $ 788,764 $ 788,764 $ — Bridge facility 95,000 95,000 — Bonds payable held in variable interest entities, at fair value 1,655,960 1,655,960 — $ 2,539,724 $ 2,539,724 $ — Total contributions $ 180,113 $ 251,929 $ 71,816 Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash, cash equivalents and restricted cash are stated at cost, which approximates fair value. Substantially all amounts on deposit with major financial institutions exceed insured limits. From time to time, the Company may have to post cash collateral to satisfy margin calls due to changes in fair value of the underlying collateral subject to master repurchase agreements. This cash is listed as restricted cash on the Consolidated Balance Sheet. Mortgage and Other Loans Held-For-Investment Loans that are held-for-investment are carried at their aggregate outstanding face amount, net of applicable (i) unamortized origination or acquisition premium and discounts, (ii) unamortized deferred fees and other direct loan origination costs, (iii) valuation allowance for loan losses and (iv) write-downs of impaired loans. The effective interest method is used to amortize origination or acquisition premiums and discounts and deferred fees or other direct loan origination costs. As prepayments of principal are received, any premiums paid are amortized against interest income. In general, an increase in prepayment rates accelerates the amortization of purchase premiums, thereby reducing the interest income earned on the assets. Conversely, discounts on such assets are accreted into interest income. In general, an increase in prepayment rates accelerates the accretion of purchase discounts, thereby increasing the interest income earned on the assets. Secured Financing and Master Repurchase Agreements The Company’s borrowings under secured financing agreements and master repurchase agreements are treated as collateralized financing arrangements carried at their contractual amounts, net of unamortized debt issuance costs, if any. Income Recognition Interest Income - Loans held-for-investment, CMBS structured pass through certificates and mortgage loans from the consolidated CMBS Entities where the Company expects to collect the contractual interest and principal payments are considered to be performing loans. The Company recognizes income on performing loans in accordance with the terms of the loan on an accrual basis. Interest income also includes amortization of loan premiums or discounts and loan origination costs. Dividend Income - Dividend income is recorded when declared. Realized Gain (Loss) on Sale of Investments - The Company recognizes the excess, or deficiency, of net proceeds received, less the carrying value of such investments, as realized gains or losses, respectively. The Company reverses cumulative, unrealized gains or losses previously reported in its Consolidated Statement of Operations with respect to the investment sold at the time of the sale. Expense Recognition Interest expense, in accordance with the Company’s financing agreements, is recorded on the accrual basis. General and administrative expenses are expensed as incurred. Allowance for Loan Losses The Company, with the assistance of an independent valuations firm, performs a quarterly evaluation of loans classified as held for investment for impairment on a loan by loan basis in accordance with ASC 310-10-35, Receivables, Subsequent Measurement (“ASC 310-10-35”). If the Company determines that it is probable that it will be unable to collect all amounts owed according to the contractual terms of a loan, impairment of that loan is indicated. If a loan is considered to be impaired, the Company will establish an allowance for loan losses, through a valuation provision in earnings that reduces carrying value of the loan to the present value of expected future cash flows discounted at the loan’s contractual effective rate or the fair value of the collateral, if repayment is expected solely from the collateral. For non-impaired loans with no specific allowance the Company determines an allowance for loan losses in accordance with ASC 450-20, Loss Contingencies (“ASC 450-20”), which represents management’s best estimate of incurred losses inherent in the portfolio at the balance sheet date, excluding impaired loans and loans carried at fair value. Management considers quantitative factors likely to cause estimated credit losses including default rate and loss severity rates. The Company also evaluates qualitative factors such as macroeconomic conditions, evaluations of underlying collateral, trends in delinquencies and non-performing assets. Increases to (or reversals of) the allowance for loan loss are included in “Loan loss provision, net” on the accompanying Consolidated Statement of Operations. Significant judgment is required in determining impairment and in estimating the resulting loss allowance, and actual losses, if any, could materially differ from those estimates. The Company performs a quarterly review of the portfolio. In conjunction with this review, the Company assesses the risk factors of each loan, including, without limitation, ratio, debt yield, property type, geographic and local market dynamics, physical condition, collateral, cash-flow volatility, leasing and tenant profile, loan structure, exit plan and project sponsorship. Based on a scale, our loans are rated “1” through “5,” from least risk to greatest risk, respectively, which ratings are defined as follows: 1 – Outperform – Materially exceeds performance metrics (for example, technical milestones, occupancy, rents, net operating income) included in original or current credit underwriting and business plan; 2 – Exceeds Expectations – Collateral performance exceeds substantially all performance metrics included in original or current credit underwriting and business plan; 3 – Satisfactory – Collateral performance meets, or is on track to meet, underwriting; business plan is met or can reasonably be achieved; 4 – Underperformance – Collateral performance falls short of underwriting, material differences exist from business plan, or both; technical milestones have been missed; defaults may exist, or may soon occur absent material improvement; and 5 – Risk of Impairment/Default – Collateral performance is significantly worse than underwriting; major variance from business plan; loan covenants or technical milestones have been breached; timely exit from loan via sale or refinancing is questionable. The Company The Company considers loans to be past-due when a monthly payment is due and unpaid for 60 days or more. Loans will be placed on nonaccrual status and considered non-performing when full payment of principal and interest is in doubt, which generally occurs when they become 120 days or more past-due unless the loan is both well secured and in the process of collection. Accrual of interest on individual loans is discontinued when management believes that, after considering economic and business conditions and collection efforts, the borrower’s financial condition is such that collection of interest is doubtful. Our policy is to stop accruing interest when a loan’s delinquency exceeds 120 days. All interest accrued but not collected for loans that are placed on nonaccrual status or subsequently charged-off are reversed against interest income. Income is subsequently recognized on the cash basis until, in management’s judgment, the borrower’s ability to make periodic principal and interest payments returns and future payments are reasonably assured, in which case the loan is returned to accrual status. For individual loans, a troubled debt restructuring is a formal restructuring of a loan where, for economic or legal reasons related to the borrower’s financial difficulties, a concession that would not otherwise be considered is granted to the borrower. The concession may be granted in various forms, including providing a below-market interest rate, a reduction in the loan balance or accrued interest, an extension of the maturity date, or a combination of these. An individual loan that has had a troubled debt restructuring is considered to be impaired and is subject to the relevant accounting for impaired loans. As of and for the year ended December 31, 2020, the Company had no loans that were considered troubled debt restructurings. A loan is written off when it is no longer realizable and/or it is legally discharged. The Company will evaluate acquired loans and debt securities for which it is probable at acquisition that all contractually required payments will not be collected in accordance with ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. Fair Value GAAP requires the categorization of the fair value of financial instruments into three broad levels that form a hierarchy based on the transparency of inputs to the valuation. Level 1 – Inputs are adjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 – Inputs are other than quoted prices that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar instruments in active markets, and inputs other than quoted prices that are observable for the asset or liability (other than quoted prices), such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 – Inputs are unobservable for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. The Company follows this hierarchy for our financial instruments. Classifications will be based on the lowest level of input that is significant to the fair value measurement. The Company reviews the valuation of Level 3 financial instruments as part of our quarterly process. Valuation of Consolidated VIEs The Company reports the financial assets and liabilities of each consolidated CMBS trust at fair value using the measurement alternative included in Accounting Standards Update (“ASU”) No. 2014-13, Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity (“ASU 2014-13”). Pursuant to ASU 2014-13, both the financial assets and financial liabilities of the consolidated CMBS trusts are measured using the fair value of the financial liabilities (which are considered more observable than the fair value of the financial assets) and the equity of the CMBS trusts beneficially owned by the Company. As a result, the CMBS issued by the consolidated trusts, but not beneficially owned by us, are presented as financial liabilities in our consolidated financial statements, measured at their estimated fair value; the Company measured the financial assets as the total estimated fair value of the CMBS issued by the consolidated trust, regardless of whether such CMBS represent interests beneficially owned by the Company. Under the measurement alternative prescribed by ASU 2014-13, “Net income (loss)” reflects the economic interests in the consolidated CMBS beneficially owned by the Company, presented as “Change in net assets related to consolidated CMBS variable interest entities” in the Consolidated Statement of Operations, which includes applicable (1) changes in the fair value of CMBS beneficially owned by the Company, (2) interest income, interest expense and servicing fees earned from the CMBS trusts and (3) other residual returns or losses of the CMBS trusts, if any. Valuation Methodologies CMBS Trusts - The financial liabilities and equity of the consolidated CMBS trusts were valued using broker quotes. Broker quotes represent the price that an investment could be sold for in a market transaction and represent fair market value. Loans and bonds with quotes that are based on actual trades with a sufficient level of activity on or near the valuation date are classified as Level 2 assets. Loans and bonds that are priced using quotes derived from implied values, bid/ask prices for trades that were never consummated, or a limited amount of actual trades are classified as Level 3 assets because the inputs used by the brokers and pricing services to derive the values are not readily observable. CMBS Structured Pass Through Certificates - CMBS structured pass through certificates (“CMBS I/O Strips”) are categorized as Level 2 assets in the fair value hierarchy. CMBS I/O Strips are valued using broker quotes. Broker quotes represent the price that an investment could be sold for in a market transaction and represent fair market value. Loans and bonds with quotes that are based on actual trades with a sufficient level of activity on or near the valuation date are classified as Level 2 assets SFR Loans, Preferred Equity Investments and Mezzanine Loans - SFR Loans, preferred equity, and mezzanine loan investments are categorized as Level 3 assets in the fair value hierarchy. SFR Loans, preferred equity and mezzanine loan investments are valued using a discounted cash flow model using discount rates derived from observable market data applied to the internal rate of return implied by the expected contractual cash flows. The valuation is done for disclosure purposes only as these investments are not carried at fair value on the consolidated balance sheet. Common Stock Investment – The Common stock investment is categorized as a Level 3 asset in the fair value hierarchy. Despite our ability to exercise significant influence, the Company chose to value the investment in NexPoint Storage Partners, Inc. (“NSP”) using the fair value option in accordance with ASC 825-10. See Note 7 for additional disclosures regarding the fair value of this investment. Repurchase Agreements - The repurchase agreements are categorized as Level 3 liabilities in the fair value hierarchy as such liabilities represent borrowings on collateral with terms specific to each borrower. Given the short to moderate term of the floating-rate facilities, the Company expects the fair value of repurchase agreements to approximate their outstanding principal balances. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis - Certain assets not measured at fair value on an ongoing basis but that are subject to fair-value adjustments only in certain circumstances, such as when there is evidence of impairment, will be measured at fair value on a nonrecurring basis. For first mortgage loans, mezzanine loans and preferred equity investments, the Company applies the amortized cost method of accounting. Overall, our determination of fair value is based upon the best information available for a given circumstance and may incorporate assumptions that are our best estimates after consideration of a variety of internal and external factors. When an independent valuation firm exp |
Loans Held for Investment
Loans Held for Investment | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Loans Held for Investment | 3. Loans Held for Investment The Company’s investments in SFR Loans, mezzanine loans, and preferred equity are accounted for as loans held for investment. The following table summarizes our loans held for investment as of December 31, 2020 (dollars in thousands): Weighted Average Loan Type Outstanding Face Amount Carrying Value (1) Loan Count Fixed Rate (2) Coupon (3) Life (years) (4) December 31, 2020 SFR Loans, held-for-investment $ 854,365 $ 918,114 26 100.00 % 4.90 % 7.39 Mezzanine loans, held-for-investment 105,399 108,557 19 100.00 % 7.46 % 8.82 Preferred equity, held-for-investment 18,877 19,220 3 100.00 % 7.79 % 7.12 $ 978,641 $ 1,045,891 48 100.00 % 5.24 % 7.54 (1) Carrying value includes the outstanding face amount plus unamortized purchase premiums/discounts and any allowance for loan losses. (2) The weighted-average fixed rate is weighted on current principal balance. (3) The weighted-average coupon is weighted on current principal balance. (4) The weighted-average life is weighted on current principal balance and assumes no prepayments. The maturity date for preferred equity investments represents the maturity date of the senior mortgage on the underlying collateral, as the preferred equity investments require repayment upon the sale or refinancing of the asset. For the year ended December 31, 2020, the loan and preferred equity portfolio activity was as follows (in thousands): Held-for-Investment Total Balance at December 31, 2019 $ — $ — Contributions from noncontrolling interests in the OP 967,202 967,202 Acquisitions 108,610 108,610 Proceeds from principal repayments (1) (9,199 ) (9,199 ) Proceeds from redemption of mezzanine loan, net (2) (13,191 ) (13,191 ) Amortization of loan premium, net (3) (6,961 ) (6,961 ) Loan loss provision, net (4) (320 ) (320 ) Realized losses (250 ) (250 ) Balance at December 31, 2020 $ 1,045,891 $ 1,045,891 (1) Includes principal repayments on the SFR Loans including the complete paydown of one loan of $6.6 million. (2) Includes the redemption of one of the mezzanine loans, net of unamortized debt issuance costs of approximately $3.2 million, and one of the preferred equity investments of $10.0 million, net of unamortized debt issuance costs. (3) Includes net amortization of loan purchase premiums. (4) Based on management’s judgment and estimate of credit losses. See Note 2 for additional information. As of December 31, 2020, there were $67.6 million of unamortized premiums on loans held-for-investment, net on the Consolidated Balance Sheets. As discussed in Note 2, the Company evaluates loans classified as held-for-investment on a loan-by-loan basis every quarter. In conjunction with the review of the portfolio, the Company assesses the risk factors of each loan and assign a risk rating based on a variety of factors. Loans are rated “1” through “5,” from least risk to greatest risk, respectively. See Note 2 for a more detailed discussion of the risk factors and ratings. The following table allocates the principal balance and net book value of the loan portfolio based on our internal risk ratings (dollars in thousands): December 31, 2020 Number of Carrying % of Loan Risk Rating Loans Value Portfolio 1 — $ — — 2 — — — 3 48 1,045,891 100.00 % 4 — — — 5 — — — 48 $ 1,045,891 100.00 % As of December 31, 2020, all 48 loans held-for-investment in our portfolio were rated “3,” or “Satisfactory” based on the factors assessed by the Company and discussed in Note 2. The following tables present the geographies and property types of collateral underlying the Company’s loans held-for-investment as a percentage of the loans’ face amounts. This information is unaudited. Geography December 31, 2020 Georgia 39.81 % Florida 20.88 % Texas 7.66 % Maryland 7.26 % Minnesota 4.82 % Alabama 3.59 % New Jersey 1.98 % North Carolina 1.67 % Mississippi 1.03 % Missouri 1.01 % Other (19 states each at <1%) 10.28 % 100.00 % Collateral Property Type December 31, 2020 Single Family Rental 87.30 % Multifamily 12.70 % 100.00 % |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | 4. Debt The following table summarizes the Company’s financing arrangements in place as of December 31, 2020: December 31, 2020 Facility Collateral Date issued Outstanding face amount Carrying value Final stated maturity Weighted average interest rate (1) Weighted average life (years) (2) Outstanding face amount Amortized cost basis Carrying value (3) Weighted average life (years) (2) Master Repurchase Agreements CMBS Mizuho (4) Apr 2020 161,465 161,465 N/A (5) 2.46 % 0.02 1,955,879 313,632 316,827 10.6 Asset Specific Financing Single Family Rental Freddie Mac 7/12/2019 780,539 780,539 3/1/2029 2.44 % 7.4 854,365 918,114 918,114 7.4 Mezzanine Freddie Mac 10/20/2020 59,914 59,914 8/1/2031 0.30 % 9.3 97,899 101,057 101,057 7.1 Unsecured Note Various 10/15/2020 36,500 34,960 10/25/2025 7.50 % 4.8 N/A N/A N/A N/A Total/weighted average $ 1,038,418 $ 1,036,878 2.50 % 6.27 $ 2,908,143 $ 1,332,803 $ 1,335,998 9.52 (1) Weighted-average interest rate using unpaid principal balances. (2) Weighted-average life is determined using the maximum maturity date of the corresponding loans, assuming all extension options are exercised by the borrower. (3) CMBS are shown at fair value. SFR Loans and mezzanine loans are shown at their carrying values. (4) In April 2020, three of our subsidiaries entered into a master repurchase agreement with Mizuho Securities (“Mizuho”). Borrowings under these repurchase agreements are collateralized by portions of the CMBS B-Pieces and CMBS I/O Strips. (5) The master repurchase agreement with Mizuho does not have a stated maturity date. The transactions in place have a one-month to two-month tenor and are expected to roll accordingly. Prior to the Formation Transaction, two of our subsidiaries entered into a loan and security agreement dated, July 12, 2019, with Freddie Mac (the “Credit Facility”). Under the Credit Facility, these entities borrowed approximately $788.8 million in connection with their acquisition of senior pooled mortgage loans backed by SFR properties (the “Underlying Loans”). No additional borrowings can be made under the Credit Facility, and our obligations will be secured by the Underlying Loans. The Credit Facility is guaranteed by certain members of the Contribution Group. The guarantors are subject to minimum net worth and liquidity covenants. The Credit Facility continues to be guaranteed by members of the Contribution Group as of December 31, 2020. The Credit Facility was assumed by the Company as part of the Formation Transaction at carrying value which approximated fair value. As such, the remaining outstanding balance of $788.8 million was contributed to the Company on February 11, 2020. Our borrowings under the Credit Facility will mature on July 12, 2029. However, if an Underlying Loan matures prior to July 12, 2029, the Company will be required to repay the portion of the Credit Facility that is allocated to that loan. As of December 31, 2020, the outstanding balance on the Credit Facility was $780.5 million. In connection with our recent CMBS acquisitions and new mezzanine debt investment, we, through the Subsidiary OPs, have borrowed approximately $161.5 million under our repurchase agreements and posted $2.0 billion par value of our CMBS B-Piece and CMBS I/O Strip investments as collateral as of December 31, 2020 . The CMBS B-Pieces and CMBS I/O Strips held as collateral are illiquid and irreplaceable in nature. These assets are restricted solely to satisfy the interest and principal balances owed to the lender. On October 15, 2020, the OP issued Senior Unsecured Notes (the “Notes”) for an aggregate principal amount of $36.5 million and a coupon rate of 7.50%. The Notes are due October 15, 2025 and were sold at approximately 99% of par value for proceeds of approximately $36.1 million before offering costs. Additionally, the Notes are fully guaranteed by the Company in the event that the OP cannot satisfy the obligations of the Notes. As of December 31, 2020, any action required under the guaranty is considered remote. On October 20, 2020, the Company acquired a portfolio of 18 mezzanine loans with an aggregate principal amount outstanding of approximately $97.9 million and a weighted average fixed interest rate of 7.54% for a price of 102.0% of the outstanding principal amount plus accrued interest of $0.3 million. Freddie Mac provided seller financing of approximately $59.9 million with a weighted average fixed interest rate of 0.30%. Proceeds from the Notes offering and cash on hand were used to fund the remainder of the purchase price. As of December 31, 2020, the outstanding principal balances related to the SFR Loans and Mezzanine Loans consisted of the following (dollars in thousands): Outstanding Investment Principal Investment Date Balance Location Property Type Interest Type Interest Rate Maturity Date SFR Loans Senior loan 2/11/2020 $ 465,689 Various Single-family Fixed 2.24 % 9/1/2028 Senior loan 2/11/2020 9,200 Various Single-family Fixed 3.51 % 2/1/2028 Senior loan 2/11/2020 4,926 Various Single-family Fixed 2.48 % 8/1/2023 Senior loan 2/11/2020 9,597 Various Single-family Fixed 2.79 % 9/1/2028 Senior loan 2/11/2020 6,877 Various Single-family Fixed 2.69 % 7/1/2028 Senior loan 2/11/2020 5,180 Various Single-family Fixed 2.64 % 10/1/2028 Senior loan 2/11/2020 11,212 Various Single-family Fixed 3.02 % 10/1/2028 Senior loan 2/11/2020 7,638 Various Single-family Fixed 3.02 % 11/1/2028 Senior loan 2/11/2020 46,146 Various Single-family Fixed 2.14 % 10/1/2025 Senior loan 2/11/2020 8,922 Various Single-family Fixed 3.30 % 10/1/2028 Senior loan 2/11/2020 35,837 Various Single-family Fixed 2.70 % 11/1/2028 Senior loan 2/11/2020 5,911 Various Single-family Fixed 2.68 % 11/1/2028 Senior loan 2/11/2020 13,603 Various Single-family Fixed 2.61 % 11/1/2023 Senior loan 2/11/2020 5,346 Various Single-family Fixed 3.14 % 12/1/2028 Senior loan 2/11/2020 9,470 Various Single-family Fixed 3.02 % 12/1/2028 Senior loan 2/11/2020 9,937 Various Single-family Fixed 2.77 % 12/1/2028 Senior loan 2/11/2020 4,882 Various Single-family Fixed 2.97 % 1/1/2029 Senior loan 2/11/2020 8,389 Various Single-family Fixed 3.14 % 1/1/2029 Senior loan 2/11/2020 5,811 Various Single-family Fixed 2.40 % 2/1/2024 Senior loan 2/11/2020 4,279 Various Single-family Fixed 3.06 % 2/1/2029 Senior loan 2/11/2020 16,021 Various Single-family Fixed 2.91 % 2/1/2029 Senior loan 2/11/2020 6,992 Various Single-family Fixed 2.98 % 2/1/2029 Senior loan 2/11/2020 7,272 Various Single-family Fixed 2.80 % 2/1/2029 Senior loan 2/11/2020 6,129 Various Single-family Fixed 2.99 % 3/1/2029 Senior loan 2/11/2020 9,284 Various Single-family Fixed 2.45 % 3/1/2026 Senior loan 2/11/2020 55,988 Various Single-family Fixed 2.70 % 3/1/2029 Total $ 780,539 2.44 % Mezzanine Loans Senior loan 10/20/2020 $ 3,348 Wilmington, DE Multifamily Fixed 0.30 % 5/1/2029 Senior loan 10/20/2020 6,353 White Marsh, MD Multifamily Fixed 0.30 % 7/1/2031 Senior loan 10/20/2020 8,723 Philadelphia, PA Multifamily Fixed 0.30 % 6/1/2029 Senior loan 10/20/2020 2,264 Daytona Beach, FL Multifamily Fixed 0.30 % 10/1/2028 Senior loan 10/20/2020 7,344 Laurel, MD Multifamily Fixed 0.30 % 4/1/2031 Senior loan 10/20/2020 1,836 Temple Hills, MD Multifamily Fixed 0.30 % 8/1/2031 Senior loan 10/20/2020 918 Temple Hills, MD Multifamily Fixed 0.30 % 8/1/2031 Senior loan 10/20/2020 3,390 Lakewood, NJ Multifamily Fixed 0.30 % 5/1/2029 Senior loan 10/20/2020 2,215 Rosedale, MD Multifamily Fixed 0.30 % 7/1/2031 Senior loan 10/20/2020 4,179 North Aurora, IL Multifamily Fixed 0.30 % 1/1/2029 Senior loan 10/20/2020 5,881 Cockeysville, MD Multifamily Fixed 0.30 % 7/1/2031 Senior loan 10/20/2020 4,523 Laurel, MD Multifamily Fixed 0.30 % 7/1/2031 Senior loan 10/20/2020 662 Vancouver, WA Multifamily Fixed 0.30 % 11/1/2030 Senior loan 10/20/2020 1,307 Tyler, TX Multifamily Fixed 0.30 % 10/1/2028 Senior loan 10/20/2020 728 Las Vegas, NV Multifamily Fixed 0.30 % 3/1/2029 Senior loan 10/20/2020 2,026 Atlanta, GA Multifamily Fixed 0.30 % 7/1/2029 Senior loan 10/20/2020 1,763 Des Moines, IA Multifamily Fixed 0.30 % 11/1/2028 Senior loan 10/20/2020 2,454 Urbandale, IA Multifamily Fixed 0.30 % 11/1/2028 Total $ 59,914 0.30 % For the year ended December 31, 2020, the activity related to the carrying value of the secured financing agreements and master repurchase agreements were as follows (in thousands): Balances as of December 31, 2019 $ — Assumption of debt 883,764 Principal borrowings 344,291 Principal repayments (191,233 ) Accretion of loan discounts 56 Balances as of December 31, 2020 $ 1,036,878 Schedule of Debt Maturities The aggregate scheduled maturities, including amortizing principal payments, of total debt for the next five calendar years subsequent to December 31, 2020 are as follows (in thousands): Year Recourse Non-recourse Total 2020 (1) $ — $ (161,465 ) $ (161,465 ) 2021 — — — 2022 — — — 2023 — (18,530 ) (18,530 ) 2024 — (5,811 ) (5,811 ) Thereafter (36,500 ) (816,112 ) (852,612 ) $ (36,500 ) $ (1,001,918 ) $ (1,038,418 ) (1) The transactions in place in the master repurchase agreement with Mizuho have a one-month to two-month tenor and are expected to roll accordingly. KeyBank Bridge Facility On February 7, 2020, we, through the Subsidiary OPs, entered into a $95.0 million bridge facility (the “Bridge Facility”) with KeyBank National Association and immediately drew $95.0 million to fund a portion of the Formation Transaction. The Company used proceeds from the IPO to pay down the entirety of the Bridge Facility. Raymond James Bridge Facility On July 30, 2020, we, through the Subsidiary OPs, entered into a $86.0 million bridge facility (the “RJ Bridge Facility”) with Raymond James Bank, N.A. and drew $21.0 million on July 30, 2020 and $65.0 million on August 7, 2020. The Company used proceeds from the RJ Bridge Facility to finance the acquisitions of the FREMF 2020-KF81 and FREMF 2020-K113 securitizations. The RJ Bridge Facility was repaid in August 2020. |
CMBS Trusts
CMBS Trusts | 12 Months Ended |
Dec. 31, 2020 | |
Statement Of Financial Position [Abstract] | |
CMBS Trusts | 5. CMBS Trusts As of December 31, 2020, the Company consolidated the CMBS Entities that it determined are VIEs and for which the Company is the primary beneficiary. The Company elected the fair-value measurement alternative in accordance with ASU 2014-13 for each of the trusts and carries the fair values of the trust’s assets and liabilities at fair value in its Consolidated Balance Sheets; recognizes changes in the trust’s net assets, including changes in fair-value adjustments and net interest earned, in its Consolidated Statement of Operations; and records cash interest received from the trusts and cash interest paid to bondholders of the CMBS not beneficially owned by the Company, as operating cash-flows. The following table presents the Company’s recognized Trust’s Assets and Liabilities (in thousands): Trust's Assets December 31, 2020 Mortgage loans held in variable interest entities, at fair value $ 5,007,515 Accrued interest receivable 1,063 Trust's Liabilities Bonds payable held in variable interest entities, at fair value (4,731,429 ) Accrued interest payable (794 ) The following table presents “Change in net assets related to consolidated CMBS variable interest entities” (in thousands): For the Year Ended December 31, 2020 Net interest earned $ 15,902 Unrealized gain 4,030 Change in net assets related to consolidated CMBS variable interest entities $ 19,932 The following tables present the geographies and property types of collateral underlying the CMBS trusts consolidated by the Company as a percentage of the collateral unpaid principal balance. This information is unaudited. Geography December 31, 2020 Collateral Property Type December 31, 2020 Florida 16.25 % Multifamily 98.12 % Texas 15.02 % Manufactured Housing 1.88 % Arizona 11.80 % 100.00 % California 8.25 % Georgia 7.05 % Washington 5.76 % Nevada 4.12 % New Jersey 4.14 % New York 3.00 % Pennsylvania 3.30 % Indiana 2.42 % Colorado 2.26 % Virginia 2.09 % Ohio 2.00 % North Carolina 1.98 % Tennessee 1.45 % Utah 1.33 % Maryland 1.32 % Missouri 1.20 % South Carolina 1.08 % Other (15 states each at <1%) 4.21 % 100.00 % |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders Equity Note [Abstract] | |
Preferred Stock | 6. Preferred Stock From February 11, 2020, until November 6, 2020 the Company held one preferred stock investment accounted for as a debt security held to maturity recorded at amortized cost. The preferred stock investment consisted of 41,881 shares of preferred stock in Jernigan Capital, Inc. (“JCAP”), a publicly traded REIT that provided capital to private developers as well as owners and operators of self-storage facilities. The preferred stock paid a fixed quarterly cash dividend of 7% in addition to a quarterly stock dividend of $2.125 million payable on a pro rata basis to the holders of the preferred stock for the first three quarters of 2020. On November 6, 2020, the preferred stock converted to common stock in conjunction with the acquisition of JCAP by affiliates of our Manager. See Note 7 below for additional disclosures regarding the preferred stock. The following table presents the preferred stock investments as of November 6, 2020 (in thousands, except share amounts): Investment Investment Date Shares Carrying Value (1) Property Type Interest Rate (2) Maturity Date Preferred Stock Jernigan Capital 2/11/2020 41,881 $ 42,147 Self-storage 7.00 % 12/31/2021 (1) Carrying value includes an unamortized purchase premium of approximately $0.3 million. (2) Represents the 7% cash dividend and excludes the effect of the quarterly stock dividend. The following table presents activity related to the Company’s preferred stock investments (in thousands): For the Year Ended December 31, 2020 Dividend income $ 6,466 Amortization of premium on preferred stock investment (157 ) $ 6,309 |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2020 | |
Schedule Of Investments [Abstract] | |
Common Stock | 7. Common Stock On November 6, 2020, in connection with the closing of the acquisition of JCAP, by affiliates of the Manager, each share of JCAP’s series A preferred stock issued and outstanding immediately prior to the effective time of the acquisition was converted into the right to receive one share of common stock, par value $0.01 per share, of the surviving company. As a result, the entirety of the Company’s preferred stock investment in JCAP was converted into common stock of the surviving company, NSP. NSP provides debt and equity capital to self-storage entrepreneurs with a view toward eventual outright ownership of the facilities it finances. Following the conversion, the Company owns approximately 25.8% of the total outstanding shares of NSP and thus can exercise significant influence over NSP, implying this investment should be accounted for under the equity method. The Company elected the fair-value option in accordance with ASC 825-10-10 for NSP. The investment in NSP is a Level 3 asset in the fair value hierarchy and will initially be measured using the entry price of the asset. This includes a one for one conversion, accrued interest and dividends and a make whole premium of 5% of the outstanding principal balance of JCAP series A preferred stock, as well as loan deposits paid on behalf of JCAP. The Company’s valuation policy for common stock is to use readily available market prices on the relevant valuation date to the extent they are available. The most recent sales price for shares of JCAP common stock occurred on November 6, 2020 at $17.30 per share. This price was used to convert the JCAP common stock and JCAP Series A preferred stock into shares of common stock of NSP with a price of $1,063.47 per share. As this was the last observable market price, the Company believes it is still the best indicator of fair value as of December 31, 2020. Additionally, there have been no significant events and no additional publicly available market prices for NSP common stock. As such, the Company measured the common stock investment in NSP using the purchase price. The following table presents the common stock investments as of December 31, 2020. (in thousands, except share amounts): Investment Investment Date Shares Fair Value Property Type Common Stock NexPoint Storage Partners 11/6/2020 41,963 $ 44,626 Self-storage The following table presents the activity related to the conversion of JCAP preferred stock to NSP common stock: For the Year Ended December 31, 2020 Contribution of preferred stock $ 40,400 Amortization of premium (157 ) Realized loss on conversion (243 ) Non-cash stock dividends received 1,881 Make-whole premium 2,094 Accrued interest and dividends 564 Purchases of common stock 87 Fair value adjustment — NSP common stock carrying value as of December 31, 2020 $ 44,626 |
CMBS Structured Pass Through Ce
CMBS Structured Pass Through Certificates | 12 Months Ended |
Dec. 31, 2020 | |
Mortgage Loans On Real Estate [Abstract] | |
CMBS Structured Pass Through Certificates | 8. CMBS Structured Pass Through Certificates As of December 31, 2020, the Company held six CMBS I/O Strips at fair value. These CMBS I/O Strips consist of interest only tranches of Freddie Mac structured pass through certificates with underlying portfolios of fixed-rate mortgage loans secured by stabilized multifamily properties. See Note 2 and Note 9 for additional disclosures regarding valuation methodologies for the CMBS I/O Strips. The following table presents the CMBS I/O Strips as of December 31, 2020 (in thousands): Investment Investment Date Carrying Value Property Type Interest Rate Current Yield Maturity Date CMBS I/O Strips CMBS I/O Strip 4/15/2020 $ 966 Multifamily 3.40 % 12.32 % 1/25/2037 CMBS I/O Strip 4/15/2020 885 Multifamily 2.93 % 12.88 % 12/25/2037 CMBS I/O Strip 5/18/2020 2,520 Multifamily 2.02 % 14.43 % 9/25/2046 CMBS I/O Strip 8/6/2020 8,542 Multifamily 0.10 % 13.45 % 6/25/2030 CMBS I/O Strip 8/6/2020 1,796 Multifamily 0.10 % 14.46 % 6/25/2030 CMBS I/O Strip 8/6/2020 24,275 Multifamily 2.98 % 13.30 % 5/25/2048 Total $ 38,984 The following table presents activity related to the Company’s CMBS I/O Strips (in thousands): For the Year Ended December 31, 2020 Interest income $ 1,124 Change in unrealized gain on CMBS structured pass through certificates (49 ) $ 1,075 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 9. Fair Value of Financial Instruments Fair-value measurements are determined based on the assumptions that market participants would use in pricing an asset or liability. As a basis for considering market-participant assumptions in fair-value measurements, ASC 820 establishes a fair-value hierarchy that distinguishes between market-participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market-participant assumptions (unobservable inputs classified within Level 3 of the hierarchy): • Level 1 inputs are adjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. • Level 2 inputs are other than quoted prices that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar instruments in active markets, and inputs that are observable for the asset or liability (other than quoted prices), such as interest rates and yield curves that are observable at commonly quoted intervals. • Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, related market activity for the asset or liability. The Company’s assessment of the significance of a particular input to the fair-value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Financial Instruments Carried at Fair Value See Note 2 and Notes 5 through 8 for additional information. Financial Instruments Not Carried at Fair Value The fair values of cash and cash equivalents, accrued interest and dividends, accounts payable and other accrued liabilities and accrued interest payable approximated their carrying values because of the short-term nature of these instruments. The estimated fair values of other financial instruments were determined by the Company using available market information and appropriate valuation methodologies. Considerable judgment is necessary to interpret market data and develop estimated fair values. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company would realize on the disposition of the financial instruments. The use of different market assumptions or estimation methodologies may have a material effect on the estimated fair value amounts. Long-term indebtedness is carried at amounts that reasonably approximate their fair value. In calculating the fair value of its long-term indebtedness, the Company used interest rate and spread assumptions that reflect current credit worthiness and market conditions available for the issuance of long-term debt with similar terms and remaining maturities. These financial instruments utilize Level 2 inputs . Amounts borrowed under master repurchase agreements are based on their contractual amounts which reasonably approximate their fair value given the short to moderate term and floating rate nature. The carrying values and fair values of the Company’s financial assets and liabilities recorded at fair value on a recurring basis, as well as other financial instruments not carried at fair value as of December 31, 2020 (in thousands): Fair Value Carrying Value Level 1 Level 2 Level 3 Total Assets Cash and cash equivalents $ 30,241 $ 30,241 $ — $ — $ 30,241 Restricted cash 3,230 3,230 — — 3,230 Loans, held-for-investment, net 127,777 — — 128,154 128,154 Common stock 44,626 — — 44,626 44,626 Mortgage loans, held-for-investment, net 918,114 — — 906,561 906,561 Accrued interest and dividends 5,078 5,078 — — 5,078 Mortgage loans held in variable interest entities, at fair value 5,007,515 — 5,007,515 — 5,007,515 CMBS structured pass through certificates, at fair value 38,984 — 38,984 — 38,984 Other assets 745 745 — — 745 $ 6,176,310 $ 39,294 $ 5,046,499 $ 1,079,341 $ 6,165,134 Liabilities Secured financing agreements, net $ 840,453 $ — $ — $ 859,331 $ 859,331 Master repurchase agreements 161,465 — — 161,465 161,465 Unsecured Notes 34,960 — — 34,960 34,960 Accounts payable and other accrued liabilities 1,779 1,779 — — 1,779 Accrued interest payable 2,311 2,311 — — 2,311 Bonds payable held in variable interest entities, at fair value 4,731,429 — 4,731,429 — 4,731,429 $ 5,772,397 $ 4,090 $ 4,731,429 $ 1,055,756 $ 5,791,275 Other Financial Instruments Carried at Fair Value Redeemable noncontrolling interests in the OP have a redemption feature and are marked to their redemption value if such value exceeds the carrying value of the redeemable noncontrolling interests in the OP (see Note 12). The redemption value is based on the fair value of the Company’s common stock at the redemption date, and therefore, is calculated based on the fair value of the Company’s common stock at the balance sheet date. Since the valuation is based on observable inputs such as quoted prices for similar instruments in active markets, redeemable noncontrolling interests in the OP are classified as Level 2 if they are adjusted to their redemption value. At December 31, 2020, the redeemable noncontrolling interests in the OP are valued at their carrying value on the Consolidated Balance Sheets. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | 10. Stockholders’ Equity Common Stock On February 11, 2020, the Company completed its IPO of 5,000,000 shares of common stock, par value $0.01 per share, at a price of $19.00 per share. In connection with the IPO, the Company sold an additional 350,000 shares of common stock, par value $0.01 per share, at a price of $19.00 per share pursuant to the partial exercise of the underwriters’ option to purchase additional shares. Gross proceeds from the IPO and partial exercise was approximately $101.7 million. Underwriting discounts and commissions of approximately $6.9 million and offering expenses of approximately $3.3 million were deducted from additional paid-in-capital. As of December 31, 2020, the Company had 5,350,000 shares of common stock, par value $0.01 per share, issued and 5,022,578 shares of common stock, par value $0.01 per share, outstanding. Preferred Stock On July 24, 2020, the Company issued 2,000,000 shares of its 8.50% Series A Cumulative Redeemable Preferred Stock (the “Series A Preferred Stock”) at a price to the public of $24.00 per share, for gross proceeds of $48.0 million before deducting underwriting discounts and commissions of approximately $1.2 million and other offering expenses of approximately $0.8 million. The Series A Preferred Stock has a $25.00 per share liquidation preference. In connection with the Series A Preferred Stock offering, one of the Subsidiary OPs purchased 455,000 shares of the Series A Preferred Stock at the public offering price of $24.00 per share. On August 4, 2020, prior to settlement of the purchase, the underwriter sold 100,000 shares of the Series A Preferred Stock at a price of $23.50 per share to an unaffiliated third-party investor as part of the primary offering. The Company reimbursed the underwriter for the differential between the $24.00 per share issue price and the $23.50 per share price paid by the third-party investor. We used the net proceeds of the Series A Preferred Stock offering to make the Preferred Offering Acquisitions (as defined in Highlights” in this annual report on Form 10-K). Share Repurchase Program On March 9, 2020, the Board authorized the Share Repurchase Program through which the Company may repurchase up to $10.0 million in shares of its common stock, par value $0.01 per share, during a two-year period that is set to expire on March 9, 2022. On September 28, 2020, the Board authorized the expansion of the Share Repurchase Program to include the Company’s Series A Preferred Stock with the same period and repurchase limit. The Company may utilize various methods to affect the repurchases, and the timing and extent of the repurchases will depend upon several factors, including market and business conditions, regulatory requirements and other corporate considerations, including whether the Company’s common stock is trading at a significant discount to net asset value per share. Repurchases under this program may be discontinued at any time. As of December 31, 2020, the Company had repurchased 327,422 shares of its common stock, par value $0.01 per share, at a total cost of approximately $4.8 million, or $14.61 per share. The 327,422 shares of common stock are classified as treasury stock and reduce the number of shares of the Company’s common stock outstanding and, accordingly, are considered in the weighted-average number of shares outstanding during the period. The audit committee has approved and ratified, subject to the prior authorization of our Board, repurchases from related party affiliates of the Company through the Share Repurchase Program, including accounts advised by affiliates of our Sponsor. As of December 31, 2020, the Company has not repurchased shares of common stock or Series A Preferred Stock under the Share Repurchase Program from its officers, directors, Manager or Sponsor, or affiliates of any of the foregoing. Long Term Incentive Plan On January 31, 2020, the Company’s sole stockholder approved the NexPoint Real Estate Finance, Inc. 2020 Long Term Incentive Plan (the “2020 LTIP”) and the Company filed a registration statement on Form S-8 registering 1,319,734 shares of common stock, par value $0.01 per share, which the Company may issue pursuant to the 2020 LTIP. The 2020 LTIP authorizes the compensation committee of the Board to provide equity-based compensation in the form of stock options, appreciation rights, restricted shares, restricted stock units, performance shares, performance units and certain other awards denominated or payable in, or otherwise based on, the Company’s common stock or factors that may influence the value of the Company’s common stock, plus cash incentive awards, for the purpose of providing the Company’s directors, officers and other key employees (and those of the Manager and the Company’s subsidiaries), the Company’s non-employee directors, and potentially certain non-employees who perform employee-type functions, incentives and rewards for performance. Restricted Stock Units . Under the 2020 LTIP, restricted stock units may be granted to the Company’s directors, officers and other key employees (and those of the Manager and the Company’s subsidiaries) and typically vest over a three to five-year period for officers, employees and certain key employees of the Manager and annually for directors. The most recent grant of restricted stock units to officers, employees and certain key employees of the Manager will vest over a four-year period. Beginning on the date of grant, restricted stock units earn dividends that are payable in cash on the vesting date. On May 8, 2020, pursuant to the 2020 LTIP, the Company granted 14,739 r estricted stock units to its directors, on June 24, 2020, the Company granted 274,274 restricted stock units to its officers and other employees of the Manager and on November 2, 2020, the Company granted 1,838 restricted stock units to the sole member of the general partner of one of the Company’s subsidiaries. The following table includes the number of restricted stock units granted, vested, forfeited and outstanding as of December 31, 2020: 2020 Number of Units Weighted Average Grant Date Fair Value Outstanding January 1, 2020 — $ — Granted 290,851 12.12 Vested — — Forfeited — — Outstanding December 31, 2020 290,851 $ 12.12 Dividends The Board declared the fourth quarterly dividend of 2020 to common shareholders of $0.40 per share on October 26, 2020, which was paid on December 31, 2020. The Board declared a dividend to preferred stockholders of $0.53125 per share on December 22, 2020, which was paid on January 25, 2020. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | 11. Earnings (Loss) Per Share Basic earnings (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the weighted- average number of shares of the Company’s common stock outstanding and excludes any unvested restricted stock units issued pursuant to the 2020 LTIP. Diluted earnings (loss) per share is computed by adjusting basic earnings (loss) per share for the dilutive effect of the assumed vesting of restricted stock units. Additionally, the Company includes the dilutive effect of the potential redemption of OP Units for common shares in accordance with the amended partnership agreement of the OP (the “Amendment”). During periods of net loss, the assumed vesting of restricted stock units is anti-dilutive and is not included in the calculation of earnings (loss) per share. The following table sets forth the computation of basic and diluted earnings (loss) per share for the periods presented (in thousands, except per share amounts): For the Year Ended December 31, 2020 Net income attributable to common stockholders $ 11,099 Earnings for basic computations Net income attributable to redeemable noncontrolling interests 21,323 Net income for diluted computations $ 32,422 Weighted-average common shares outstanding Average number of common shares outstanding - basic 5,206 Average number of unvested restricted stock units 172 Average number of OP Units 13,270 Average number of common shares outstanding - diluted 18,648 Earnings (loss) per weighted average common share: Basic $ 2.13 Diluted $ 1.74 |
Noncontrolling Interests
Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2020 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | 12. Noncontrolling Interests Redeemable Noncontrolling Interests in the Subsidiary OPs In connection with the Formation Transaction, the Contribution Group contributed assets to SPEs owned by Subsidiary OPs in exchange for SubOP Units. Net income (loss) is allocated to holders of SubOP Units based upon net income (loss) attributable to common stockholders and the weighted-average number of SubOP Units outstanding to total common shares plus SubOP Units outstanding during the period. Capital contributions, distributions, and profits and losses are allocated to SubOP Units in accordance with the terms of the partnership agreement of the Subsidiary OPs. Each time the Subsidiary OPs distribute cash, limited partners of the Subsidiary OPs receive their pro-rata share of the distribution. In connection with the issuance of SubOP Units to the Contribution Group on February 11, 2020, the Subsidiary OPs and the OP amended the partnership agreements of the Subsidiary OPs (the “Subsidiary OP Amendments”). Pursuant to the Subsidiary OP Amendments, limited partners holding SubOP Units have the right to cause each of the Subsidiary OPs to redeem their units at a redemption price equal to and in the form of the Cash Amount (as defined in the partnership agreements of the Subsidiary OPs), provided that such SubOP Units have been outstanding for at least one year. The OP is the general partner of the Subsidiary OPs and may, in its sole discretion, purchase the SubOP Units by paying to the SubOP Unit holder either the Cash Amount or the OP Unit Amount (one OP Unit for each SubOP Unit, subject to adjustment), as defined in the partnership agreements of the Subsidiary OPs. Notwithstanding the foregoing, a limited partner will not be entitled to exercise its redemption right to the extent the issuance of the OP Units to the redeeming limited partner would (1) be prohibited, as determined in the OP’s sole discretion, or (2) cause the acquisition of OP Units by such redeeming limited partner to be “integrated” with any other distribution of OP Units for purposes of complying with the Securities Act of 1933, as amended (the “Securities Act”). The OP, as the general partner and primary beneficiary of the Subsidiary OPs, consolidates the Subsidiary OPs. Redeemable Noncontrolling Interests in the OP Interests in the OP held by limited partners are represented by OP Units. As of December 31, 2020, the Company is the majority limited partner in the OP. Net income (loss) is allocated to holders of OP Units based upon net income (loss) attributable to common stockholders and the weighted-average number of OP Units outstanding to total common shares plus OP Units outstanding during the period. Capital contributions, distributions, and profits and losses are allocated to OP Units in accordance with the terms of the partnership agreement of the OP. Each time the OP distributes cash to the Company, limited partners of the OP receive their pro-rata share of the distribution. In connection with the IPO on February 11, 2020, the Company and the OP GP amended the partnership agreement of the OP (the “OP Amendment”). Pursuant to the OP Amendment, limited partners holding OP Units have the right to cause the OP to redeem their units at a redemption price equal to and in the form of the Cash Amount (as defined in the partnership agreement of the OP and discussed further below), provided that such OP Units have been outstanding for at least one year. The Company may, in its sole discretion, purchase the OP Units by paying to the limited partner either the Cash Amount or the REIT Shares Amount (generally one share of common stock of the Company for each OP Unit, subject to adjustment) as defined in the partnership agreement of the OP. Notwithstanding the foregoing, a limited partner will not be entitled to exercise its redemption right to the extent the issuance of the Company’s common stock to the redeeming limited partner would (1) be prohibited, as determined in the Company’s sole discretion, under the Company’s charter or (2) cause the acquisition of common stock by such redeeming limited partner to be “integrated” with any other distribution of the Company’s common stock for purposes of complying with the Securities Act. Accordingly, the Company records the OP Units held by noncontrolling limited partners outside of permanent equity and reports the OP Units at the greater of their carrying value or their redemption value using the Company’s stock price at each balance sheet date. The Cash Amount is defined in the partnership agreement of the OP as the greater of the most recent net asset value of the Company as determined by our Board (the “NAV”) and the volume-weighted average price of the Company’s common stock, which because the Company’s common stock is listed on the New York Stock Exchange will be calculated for the ten consecutive trading days (the “Ten Day VWAP”) immediately preceding the date on which the general partner of the OP receives a notice of redemption from the limited partner, or the first business day thereafter (the “Valuation Date”). The Ten Day VWAP calculated based on a Valuation Date of December 31, 2020 On July 30, 2020, NREF OP IV, L.P. (“OP IV”), one of the Subsidiary OPs, entered into subscription agreements with certain entities affiliated with the Manager (the “Manager Affiliates”), which were then-current majority owners of OP IV, for 359,000 SubOP Units in OP IV for total consideration of approximately $6.6 million. On August 4, 2020, OP IV entered into additional subscription agreements with the Manager Affiliates for 267,320 SubOP Units in OP IV for total consideration of approximately $4.9 million. The total number of SubOP Units issued was calculated by dividing the total consideration by the combined book value of the Company’s common stock and the SubOP Units, on a per share or unit basis, as of June 30, 2020, or $18.33 per SubOP Unit. On September 30, 2020, the unitholders (other than the OP) of OP IV exercised their redemption right for 100% of their units outstanding. Following direction and approval of the Board and the general partner of OP IV, the OP purchased the tendered OP IV units in exchange for an equal number of OP Units. After the transaction, OP IV is wholly-owned by the OP and the Company owns 50.28% of the OP. The following table sets forth the redeemable noncontrolling interests in the OP (reflecting the OP’s consolidation of the Subsidiary OPs) for the year ended December 31, 2020 (in thousands): Redeemable noncontrolling interests in the OP, December 31, 2019 $ — Contributions from redeemable noncontrolling interests in the OP 273,410 Net income attributable to redeemable noncontrolling interests in the OP 21,323 Distributions to redeemable noncontrolling interests in the OP (19,063 ) Redeemable noncontrolling interests in the OP, December 31, 2020 $ 275,670 On July 20, 2020, in connection with the anticipated issuance by the Company of the Series A Preferred Stock, the OP, following the direction and approval of the Board, amended the partnership agreement of the OP to provide for the issuance of 8.50% Series A Cumulative Redeemable Preferred Units (liquidation preference $25.00 per unit) in our OP (the “Series A Preferred Units”). The Company contributed the net proceeds from the sale of the Series A Preferred Stock to the OP in exchange for the same number of Series A Preferred Units. The Series A Preferred Units have economic terms that are substantially the same as the terms of the Series A Preferred Stock. The Series A Preferred Units rank, as to distributions and upon liquidation, senior to OP Units. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 13. Related Party Transactions Formation Transaction Company commenced operations on February 11, 2020 upon the closing of its IPO. Prior to the closing of the IPO, the Company engaged in the Formation Transaction through which it acquired the Initial Portfolio. The Initial Portfolio was acquired from the Contribution Group, which was comprised of affiliates of our Sponsor, pursuant to a contribution agreement with the Contribution Group through which the Contribution Group contributed their interest in the Initial Portfolio to SPEs owned by the Subsidiary OPs, in exchange for SubOP Units. See Note 12 for more information regarding the noncontrolling interests in the Subsidiary OPs held by the Contribution Group. Management Fee In accordance with the Management Agreement, the Company pays the Manager an annual management fee equal to 1.5% of Equity (as defined below), paid monthly, in cash or shares of Company common stock at the election of our Manager (the “Annual Fee”). The duties performed by the Company’s Manager under the terms of the Management Agreement include, but are not limited to: providing daily management for the Company, selecting and working with third-party service providers, formulating an investment strategy for the Company and selecting suitable investments, managing the Company’s outstanding debt and its interest rate exposure and determining when to sell assets. “Equity” means (a) the sum of (1) total stockholders’ equity immediately prior to the IPO, plus (2) the net proceeds received by the Company from all issuances of the Company’s equity securities in and after the IPO, plus (3) the Company’s cumulative Core Earnings (as defined below) from and after the IPO to the end of the most recently completed calendar quarter, (b) less (1) any distributions to the holders of the Company’s common stock from and after the IPO to the end of the most recently completed calendar quarter and (2) all amounts that the Company or any of its subsidiaries has paid to repurchase for cash the shares of the Company’s equity securities from and after the IPO to the end of the most recently completed calendar quarter. In the Company’s calculation of Equity, the Company will adjust its calculation of Core Earnings to remove the compensation expense relating to awards granted under one or more of its long-term incentive plans that is added back in the calculation of Core Earnings. Additionally, for the avoidance of doubt, Equity does not include the assets contributed to the Company in the Formation Transaction. “Core Earnings” means the net income (loss) attributable to the common stockholders of the Company, computed in accordance with GAAP, including realized gains and losses not otherwise included in net income (loss), excluding any unrealized gains or losses or other similar non-cash items that are included in net income (loss) for the applicable reporting period, regardless of whether such items are included in other comprehensive (loss), or in net income (loss) and adding back amortization of stock-based compensation. Net income (loss) attributable to common stockholders may also be adjusted for one-time events pursuant to changes in GAAP and certain material non-cash income or expense items, in each case after discussions between the Manager and the independent directors of the Board and approved by a majority of the independent directors of the Board. Pursuant to the terms of the Management Agreement, the Company is required to pay directly or reimburse the Manager for all documented Operating Expenses and Offering Expenses it incurs on behalf of the Company. “Operating Expenses” include legal, accounting, financial and due diligence services performed by the Manager that outside professionals or outside consultants would otherwise perform, the Company’s pro rata share of rent, telephone, utilities, office furniture, equipment, machinery and other office, internal and overhead expenses of the Manager required for the Company’s operations, and compensation expenses under the 2020 LTIP. “Offering Expenses” include all expenses (other than underwriters’ discounts) in connection with an offering of securities, including, without limitation, legal, accounting, printing, mailing and filing fees and other documented offering expenses. For the year ended December 31, 2020, the Company reimbursed the Manager for approximately $0.1 million of Offering Expenses that were paid on the Company’s behalf. Connections at Buffalo Pointe Contribution On May 29, 2020, the OP entered into a contribution agreement (the “Buffalo Pointe Contribution Agreement”) with entities affiliated with executive officers of the Company and the Manager (the “BP Contributors”) whereby the BP Contributors contributed their respective preferred membership interests in NexPoint Buffalo Pointe Holdings, LLC (“Buffalo Pointe”), to the OP for total consideration of $10.0 million paid in OP Units. A total of 564,334.09 OP Units were issued to the BP Contributors, which was calculated by dividing the total consideration of $10.0 million by the combined book value of the Company’s common stock and the SubOP Units, on a per share or unit basis, as of the end of the first quarter, or $17.72 per OP Unit. Buffalo Pointe owns a stabilized multifamily property located in Houston, Texas with 90.3% occupancy as of December 31, 2020. The preferred equity investment pays current interest at a rate of 6.5%, deferred interest at a rate of 4.5%, has an LTV of 82.9% and a maturity date of May 1, 2030. Pursuant to the OP’s limited partnership agreement and the Buffalo Pointe Contribution Agreement, t he BP Contributors have the right to cause our OP to redeem their OP Units for cash or, at our election, shares of our common stock on a one-for-one basis, subject to adjustment, as provided and subject to the limitations in our OP’s limited partnership agreement, provided the OP Units have been outstanding for at least one year and our stockholders have approved the issuance of shares of common stock to the BP Contributors. The Formation Transaction The Formation Transaction was a related party transaction between the Contribution Group and the Company as the entities in the Contribution Group are affiliates of our Sponsor. See Note 1 for additional disclosures regarding the Formation Transaction. Jernigan Capital Acquisition On November 6, 2020, a subsidiary of the Company and affiliates of our Manager completed a merger with JCAP, taking that entity private, and converting the Company’s preferred stock investment into common shares of NSP, the surviving entity. See Notes 6 and 7 for additional disclosure regarding this transaction. RSU Issuance On May 8, 2020, in accordance with the 2020 LTIP, the Company granted 14,739 restricted stock units to its directors, on June 24, 2020, the Company granted 274,274 restricted stock units to its officers and other employees of the Manager, and o n November 2, 2020, the Company granted 1,838 restricted stock units to the sole member of the general partner of one of the Company’s subsidiaries. See Note 10 for additional disclosures. Expense Cap Pursuant to the terms of the Management Agreement, direct payment of operating expenses by the Company, which includes compensation expense relating to equity awards granted under the 2020 LTIP, together with reimbursement of operating expenses to the Manager, plus the Annual Fee, may not exceed 2.5% of equity book value (the “Expense Cap”) for any calendar year or portion thereof, provided, however, that this limitation will not apply to Offering Expenses, legal, accounting, financial, due diligence and other service fees incurred in connection with extraordinary litigation and mergers and acquisitions and other events outside the ordinary course of business or any out-of-pocket acquisition or due diligence expenses incurred in connection with the acquisition or disposition of certain real estate-related investments. For the year ended December 31, 2020, operating expenses did not exceed the Expense Cap. For the year ended December 31, 2020, the Company incurred management fees of $1.6 million. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 14. Commitments and Contingencies The Company is not aware of any contractual obligations, legal proceedings, or any other contingent obligations incurred in the normal course of business that would have a material adverse effect on our consolidated financial statements. The Notes previously mentioned in Note 4 are fully guaranteed by the Company. As of December 31, 2020, there has been no indication that the OP will not be able to satisfy the terms of the Notes. The Company considers any action required under the guaranty to be remote. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 15. Subsequent Events Mezzanine Loan Investment On January 21, 2021, the Company issued two mezzanine loans encompassing an A-note and B-note structure, with an aggregate principal amount outstanding of approximately $26.4 million. The $24.8 million A-note matures on January 21, 2024, plus two one-year extensions and the $1.5 million B-note matures on February 21, 2022. The A-note generates interest income at a rate of WSJ Prime plus a spread with a minimum all-in rate of 12.5% for the first 25 months, and 14.5% thereafter. The B-note generates interest income at a rate of WSJ Prime plus a spread over the index of 10.0%, with a minimum all-in rate of 12.5%. A fixed minimum rate of 8.0% is paid in cash on a monthly basis. The difference between the 8.0% minimum monthly payment and the all-in rate is accrued as paid-in-kind (“PIK”) interest and is compounded on a monthly basis. Dividends Declared On February 15, 2021, the Board declared a quarterly dividend of $0.475 per share, payable on March 31, 2021 to common stockholders of record on March 15, 2021. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Accounting | Basis of Accounting The accompanying consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States (“GAAP”). GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the dates of the consolidated financial statements and the amounts of revenues and expenses during the reporting periods. Actual amounts realized or paid could differ from those estimates. All significant intercompany accounts and transactions have been eliminated in consolidation. There have been no significant changes to the Company’s significant accounting policies during the year ended December 31, 2020. The accompanying consolidated financial statements have been prepared according to the rules and regulations of the SEC. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted according to such rules and regulations, although management believes that the disclosures are adequate to make the information presented not misleading. |
Use of Estimates and Assumptions | Use of Estimates and Assumptions The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. It is at least reasonably possible that these estimates could change in the near term. Estimates are inherently subjective in nature and actual results could differ from our estimates and the differences could be material. In December 2019, a novel coronavirus, which causes respiratory illness and spreads from person to person (COVID-19), was first identified during an investigation into an outbreak in Wuhan, China. The first case of COVID-19 in the U.S. was reported on January 20, 2020. On March 11, 2020, the World Health Organization declared COVID-19 a pandemic, and on March 13, 2020, the U.S. declared a national emergency with respect to COVID-19. Over the ensuing weeks, former President Trump and the task force that was set up to deal with preparations across the country announced sweeping and unprecedented actions to help slow the spread of the virus. The former President’s task force recommended all citizens practice “social distancing” and other protocols to limit interaction between individuals for a period of 15 days, a recommendation which was later expanded to 30 days and ultimately expired on April 30, 2020. While many of these restrictions and forced closures were initially lifted in varying degrees beginning in May 2020, a resurgence of COVID-19 cases in the United States caused many cities and states to reinstitute such restrictions and closures. In addition, the U.S. government imposed restrictions on the entry of certain travelers into the United States, and the U.S./Mexican and U.S./Canadian borders remain temporarily closed for all non-essential travel to limit the spread of the virus across countries. The Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) imposed a moratorium on evictions for tenants meeting certain requirements, including most federal housing assistance, in cases of nonpayment of rent and the charging of late fees. The CARES Act moratorium expired on July 25, 2020. On August 8, 2020, former President Trump issued an executive order instructing public health officials to consider measurers to temporarily halt evictions. On September 4, 2020, the U.S. Centers for Disease Control and Prevention (the “CDC”) issued an order imposing a new moratorium that temporarily halted evictions for tenants meeting certain requirements, including inability to pay, in cases of nonpayment of rent and the charging of late fees through December 31, 2020. The CDC order was extended through March 31, 2021. As of January 29, 2021, according to the CDC, over 4.7 million individuals in the U.S. have been fully vaccinated for COVID-19, and the U.S. is expected to continue to roll out vaccines across the nation, prioritizing frontline and essential workers, the elderly, and individuals considered high risk. However, the initial rollout of vaccine distribution has encountered significant delays, and uncertainties remain as to the amount of the vaccine available for distribution, the logistics of implementing a national vaccine program, and the overall efficacy of the vaccines once widely administered, especially as new strains of COVID-19 are discovered and the level of resistance these new strains may have to the existing vaccines, if any, remains unknown. On January 14, 2021, President Biden proposed a $1.9 trillion “American Rescue Plan” to combat the pandemic and stimulate the economy. The legislative proposal would provide additional provisions for increased unemployment benefits, rental assistance, small businesses, state and local governments, educational institutions, and substantial funding toward accelerated distribution of vaccinations and COVID-19 testing, as well as direct payments of $1,400 to all eligible persons. The American Rescue Plan is the first of two major spending initiatives expected to be proposed by President Biden. Collectively, these actions, while for the benefit of public health, have had and will likely continue to have a significant impact on the American economy. The U.S. stock market initially experienced historic declines over an extraordinarily short period of time. Certain industries such as airlines, lodging, entertainment, gaming, cruise ships, and industries closely associated with the foregoing have seen, and continue to see, unprecedented declines in business. Potential ineffectiveness or delay of such relief measures could lead to further deterioration of economic conditions, higher unemployment rates, and prolonged recession, which in turn could materially affect our performance, financial condition, results of operations, and cash flows. COVID-19 may also negatively and materially impact estimates and assumptions used by the Company including, but not limited to, fair value estimates and estimates of an allowance for loan losses. See “Item 1A. Risk Factors —Risk Factors Related to Our Business—The current COVID-19 pandemic and the future outbreak of other highly infectious or contagious diseases could materially and adversely impact or disrupt our financial condition, results of operations, cash flows and performance The Company is closely monitoring the impact of the COVID-19 pandemic on all aspects of our business. As of December 31, 2020, there have been two forbearance requests approved in the CMBS B-Piece portfolio, representing 0.8% of the Company’s consolidated unpaid principal balance outstanding. Additionally, there were nine forbearance requests approved in our SFR loan book. However, as of December 31, 2020, these loans were no longer in forbearance. Despite these forbearance requests, the master servicers continued to make payments to the Company for the portion of our CMBS B-Piece and SFR Loans that requested forbearance, and were approved by Freddie Mac, during the entire forbearance period. These agreed upon forbearance requests include both principal and interest payments for three months, with an option to the borrower to extend an additional three months, and require the borrower to repay Freddie Mac within twelve months of the end of the forbearance period. |
Principles of Consolidation | Principles of Consolidation The Company accounts for subsidiary partnerships in which it holds an ownership interest in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, Consolidation |
Variable Interest Entities | Variable Interest Entities The Company evaluates all of its interests in VIEs for consolidation. When the Company’s interests are determined to be variable interests, the Company assesses whether it is deemed to be the primary beneficiary of the VIE. The primary beneficiary of a VIE is required to consolidate the VIE. FASB ASC Topic 810, Consolidation |
CMBS Trusts | CMBS Trusts The Company consolidates the trusts that issue beneficial ownership interests in mortgage loans secured by commercial real estate (commonly known as CMBS) when the Company holds a variable interest in, and management considers the Company to be the primary beneficiary of those trusts. Management believes the performance of the assets that underlie CMBS issuances most significantly impact the economic performance of the trust, and the primary beneficiary is generally the entity that conducts activities that most significantly impact the performance of the underlying assets. In particular, the most subordinate tranches of CMBS expose the holder to greater variability of economic performance when compared to more senior tranches since the subordinate tranches absorb a disproportionately higher amount of the credit risk related to the underlying assets. Generally, a trust designates the most junior subordinate tranche outstanding as the controlling class, which entitles the holder of the controlling class to unilaterally appoint, remove and replace the special servicer for the trust. For the CMBS that the Company consolidates, the Company owns 100% of the most subordinate tranche of the securities issued by the trusts, which include the controlling class, and has the ability to remove and replace the special servicer. On the Consolidated Balance Sheets as of December 31, 2020, the Company consolidated the five Freddie Mac K-Series securitization entities (the “CMBS Entities”) that were determined to be VIEs and for which the Company is the primary beneficiary. The CMBS Entities are independent of the Company, and the assets and liabilities of the CMBS Entities are not owned by and are not legal obligations of ours. Our exposure to the CMBS Entities is through the subordinated tranches. For financial reporting purposes, the underlying mortgage loans held by the trusts are recorded as a separate line item on the balance sheet under “Mortgage loans held in variable interest entities, at fair value.” The liabilities of the trusts consist solely of obligations to the CMBS holders of the consolidated trusts, excluding the CMBS B-Piece investments held by the Company. The liabilities are presented as “Bonds payable held in variable interest entities, at fair value” on the Consolidated Balance Sheets. The CMBS B-Pieces held by the Company and the interest earned thereon are eliminated in consolidation. Management has elected the measurement alternative in ASC 810 to report the fair value of the assets and liabilities of the consolidated CMBS Entities in order to provide users of the financial statements with better information regarding the effects of credit risk and other market factors on the CMBS B-Pieces owned by the Company. Management has elected to show interest income and interest expense related to the CMBS Entities in aggregate with the change in fair value as “Change in net assets related to consolidated CMBS variable interest entities.” The residual difference between the fair value of the CMBS Entities’ assets and liabilities represents the Company’s investments in the CMBS B-Pieces. |
Investment in Subsidiaries | Investment in subsidiaries The Company conducts its operations through the OP, which acts as the general partner of the Subsidiary OPs, which own investments through limited liability companies that are SPEs and as the sole member of the Mezz LLC, which owns investments directly. The Company is the majority limited partner of the OP, holds approximately 50.28% of the OP Units in the OP and has the ability to remove the general partner of the OP with or without cause, and as such, consolidates the OP. The Company consolidates the SPEs in which it has a controlling financial interest as well as any VIEs where it is the primary beneficiary. All of the investments the SPEs own are consolidated in the consolidated financial statements. Generally, the assets of each entity can only be used to settle obligations of that particular entity, and the creditors of each entity have no recourse to the assets of other entities or the Company notwithstanding equity pledges various lenders may have in certain entities. |
Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interests Noncontrolling interests represent the ownership interests in consolidated subsidiaries held by entities other than the Company. Those noncontrolling interests that the holder is allowed to redeem before liquidation or termination of the entity that issued those interests are considered redeemable noncontrolling interests. The Subsidiary OPs have redeemable noncontrolling interests classified on the Consolidated Balance Sheets as temporary equity in accordance with ASC 480. This is presented as “Redeemable noncontrolling interests in the OP” on the Consolidated Balance Sheets and their share of “Net Income” as “Net Income attributable to redeemable noncontrolling interests” in the accompanying Consolidated Statement of Operations. The redeemable noncontrolling interests were initially measured at the fair value of the contributed assets in accordance with ASC 805-50. The redeemable noncontrolling interests will be adjusted to their redemption value if such value exceeds the carrying value of the redeemable noncontrolling interests. Capital contributions, distributions and profits and losses are allocated to the redeemable noncontrolling interests in accordance with the terms of the partnership agreements of the Subsidiary OPs. |
Acquisition Accounting | Acquisition Accounting The Company accounts for the assets acquired in the Formation Transaction as asset acquisitions pursuant to ASC 805-50 rather than as business combinations. Substantially all of the fair value of the assets acquired are concentrated in a group of similar identifiable assets, i.e. the SFR Loans represent one acquisition of similar identifiable assets, and the acquisition of the CMBS B-Pieces represents an additional acquisition of similar identifiable assets. Additionally, there were no corresponding in-place workforce, servicing platforms or any other item that could be considered an input or process associated with these assets. As such, the SFR Loans and the CMBS B-Pieces do not constitute businesses as defined by ASC 805-10-55. As the investments in the Initial Portfolio were contributed to the Subsidiary OPs in a non-cash transaction, cost is based on the fair value of the assets acquired. |
Formation Transaction | Formation Transaction The Company commenced operations on February 11, 2020 upon the closing of its IPO. Prior to the closing of the IPO, the Company engaged in the Formation Transaction through which it acquired the Initial Portfolio consisting of SFR Loans, CMBS B-Pieces, mezzanine loan and preferred equity investments in real estate companies and properties in other structured real estate investments within the multifamily, SFR and self-storage asset classes. The Initial Portfolio was acquired from the Contribution Group, pursuant to a contribution agreement through which the Contribution Group contributed their interest in the Initial Portfolio to SPEs owned by the Subsidiary OPs, in exchange for SubOP Units. The assets and liabilities constituting the Initial Portfolio were contributed at fair value using a cutoff date of January 31, 2020. The mezzanine loan, preferred stock and preferred equity investments were valued using a discounted cash flow model using discount rates negotiated with the Contribution Group. A third-party valuation firm was utilized to value the SFR Loans using the income approach in accordance with ASC Topic 820. The income approach utilizes a discounted cash flow method to present value the expected future cash flows. The future cash flows were projected based on the terms of the loans including interest rates, current balances and servicing fees. The future cash flows depend substantially on various other assumptions such as prepayment rates, prepayment charges, default rates, expected loss given default (severity), and other inputs. The Credit Facility (defined below) contributed along with the SFR Loans was also valued using the income approach as previously described. The equity and financial liabilities of the consolidated CMBS B-Pieces were valued using broker quotes (see “—Valuation Methodologies” below for more information on our valuation methodologies). The Bridge Facility (defined below) was originated shortly before the closing of the IPO and was contributed at its carrying value, which approximated fair value. The fair values of the contributed cash and accrued interest and dividends approximated their carrying values because of the short-term nature of these instruments. The fair values of the contributed assets described above were agreed upon by the Contribution Group and used to determine the number of SubOP Units issued. Any purchase premiums or discounts are amortized over the expected life of the investment. The following table shows the par values, fair values and purchase premiums (discounts) of the Initial Portfolio as of February 11, 2020, the closing date of the IPO: Par value Fair Value Premium (Discount) Assets Cash $ 302 $ 302 $ — Loans, held-for-investment, net 22,127 22,282 155 Preferred stock 40,000 40,400 400 Mortgage loans, held-for-investment, net 863,564 934,918 71,354 Accrued interest and dividends 3,616 3,616 — Mortgage loans held in variable interest entities, at fair value 1,790,228 1,790,135 (93 ) $ 2,719,837 $ 2,791,653 $ 71,816 Liabilities Credit facility $ 788,764 $ 788,764 $ — Bridge facility 95,000 95,000 — Bonds payable held in variable interest entities, at fair value 1,655,960 1,655,960 — $ 2,539,724 $ 2,539,724 $ — Total contributions $ 180,113 $ 251,929 $ 71,816 |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash, cash equivalents and restricted cash are stated at cost, which approximates fair value. Substantially all amounts on deposit with major financial institutions exceed insured limits. From time to time, the Company may have to post cash collateral to satisfy margin calls due to changes in fair value of the underlying collateral subject to master repurchase agreements. This cash is listed as restricted cash on the Consolidated Balance Sheet. |
Mortgage and Other Loans Held-for-investment | Mortgage and Other Loans Held-For-Investment Loans that are held-for-investment are carried at their aggregate outstanding face amount, net of applicable (i) unamortized origination or acquisition premium and discounts, (ii) unamortized deferred fees and other direct loan origination costs, (iii) valuation allowance for loan losses and (iv) write-downs of impaired loans. The effective interest method is used to amortize origination or acquisition premiums and discounts and deferred fees or other direct loan origination costs. As prepayments of principal are received, any premiums paid are amortized against interest income. In general, an increase in prepayment rates accelerates the amortization of purchase premiums, thereby reducing the interest income earned on the assets. Conversely, discounts on such assets are accreted into interest income. In general, an increase in prepayment rates accelerates the accretion of purchase discounts, thereby increasing the interest income earned on the assets. |
Secured Financing and Master Repurchase Agreements | Secured Financing and Master Repurchase Agreements The Company’s borrowings under secured financing agreements and master repurchase agreements are treated as collateralized financing arrangements carried at their contractual amounts, net of unamortized debt issuance costs, if any. |
Income Recognition | Income Recognition Interest Income - Loans held-for-investment, CMBS structured pass through certificates and mortgage loans from the consolidated CMBS Entities where the Company expects to collect the contractual interest and principal payments are considered to be performing loans. The Company recognizes income on performing loans in accordance with the terms of the loan on an accrual basis. Interest income also includes amortization of loan premiums or discounts and loan origination costs. Dividend Income - Dividend income is recorded when declared. Realized Gain (Loss) on Sale of Investments - The Company recognizes the excess, or deficiency, of net proceeds received, less the carrying value of such investments, as realized gains or losses, respectively. The Company reverses cumulative, unrealized gains or losses previously reported in its Consolidated Statement of Operations with respect to the investment sold at the time of the sale. |
Expense Recognition | Expense Recognition Interest expense, in accordance with the Company’s financing agreements, is recorded on the accrual basis. General and administrative expenses are expensed as incurred. |
Allowance for Loan Losses | Allowance for Loan Losses The Company, with the assistance of an independent valuations firm, performs a quarterly evaluation of loans classified as held for investment for impairment on a loan by loan basis in accordance with ASC 310-10-35, Receivables, Subsequent Measurement (“ASC 310-10-35”). If the Company determines that it is probable that it will be unable to collect all amounts owed according to the contractual terms of a loan, impairment of that loan is indicated. If a loan is considered to be impaired, the Company will establish an allowance for loan losses, through a valuation provision in earnings that reduces carrying value of the loan to the present value of expected future cash flows discounted at the loan’s contractual effective rate or the fair value of the collateral, if repayment is expected solely from the collateral. For non-impaired loans with no specific allowance the Company determines an allowance for loan losses in accordance with ASC 450-20, Loss Contingencies (“ASC 450-20”), which represents management’s best estimate of incurred losses inherent in the portfolio at the balance sheet date, excluding impaired loans and loans carried at fair value. Management considers quantitative factors likely to cause estimated credit losses including default rate and loss severity rates. The Company also evaluates qualitative factors such as macroeconomic conditions, evaluations of underlying collateral, trends in delinquencies and non-performing assets. Increases to (or reversals of) the allowance for loan loss are included in “Loan loss provision, net” on the accompanying Consolidated Statement of Operations. Significant judgment is required in determining impairment and in estimating the resulting loss allowance, and actual losses, if any, could materially differ from those estimates. The Company performs a quarterly review of the portfolio. In conjunction with this review, the Company assesses the risk factors of each loan, including, without limitation, ratio, debt yield, property type, geographic and local market dynamics, physical condition, collateral, cash-flow volatility, leasing and tenant profile, loan structure, exit plan and project sponsorship. Based on a scale, our loans are rated “1” through “5,” from least risk to greatest risk, respectively, which ratings are defined as follows: 1 – Outperform – Materially exceeds performance metrics (for example, technical milestones, occupancy, rents, net operating income) included in original or current credit underwriting and business plan; 2 – Exceeds Expectations – Collateral performance exceeds substantially all performance metrics included in original or current credit underwriting and business plan; 3 – Satisfactory – Collateral performance meets, or is on track to meet, underwriting; business plan is met or can reasonably be achieved; 4 – Underperformance – Collateral performance falls short of underwriting, material differences exist from business plan, or both; technical milestones have been missed; defaults may exist, or may soon occur absent material improvement; and 5 – Risk of Impairment/Default – Collateral performance is significantly worse than underwriting; major variance from business plan; loan covenants or technical milestones have been breached; timely exit from loan via sale or refinancing is questionable. The Company The Company considers loans to be past-due when a monthly payment is due and unpaid for 60 days or more. Loans will be placed on nonaccrual status and considered non-performing when full payment of principal and interest is in doubt, which generally occurs when they become 120 days or more past-due unless the loan is both well secured and in the process of collection. Accrual of interest on individual loans is discontinued when management believes that, after considering economic and business conditions and collection efforts, the borrower’s financial condition is such that collection of interest is doubtful. Our policy is to stop accruing interest when a loan’s delinquency exceeds 120 days. All interest accrued but not collected for loans that are placed on nonaccrual status or subsequently charged-off are reversed against interest income. Income is subsequently recognized on the cash basis until, in management’s judgment, the borrower’s ability to make periodic principal and interest payments returns and future payments are reasonably assured, in which case the loan is returned to accrual status. For individual loans, a troubled debt restructuring is a formal restructuring of a loan where, for economic or legal reasons related to the borrower’s financial difficulties, a concession that would not otherwise be considered is granted to the borrower. The concession may be granted in various forms, including providing a below-market interest rate, a reduction in the loan balance or accrued interest, an extension of the maturity date, or a combination of these. An individual loan that has had a troubled debt restructuring is considered to be impaired and is subject to the relevant accounting for impaired loans. As of and for the year ended December 31, 2020, the Company had no loans that were considered troubled debt restructurings. A loan is written off when it is no longer realizable and/or it is legally discharged. The Company will evaluate acquired loans and debt securities for which it is probable at acquisition that all contractually required payments will not be collected in accordance with ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. |
Fair Value | Fair Value GAAP requires the categorization of the fair value of financial instruments into three broad levels that form a hierarchy based on the transparency of inputs to the valuation. Level 1 – Inputs are adjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 – Inputs are other than quoted prices that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar instruments in active markets, and inputs other than quoted prices that are observable for the asset or liability (other than quoted prices), such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 – Inputs are unobservable for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. The Company follows this hierarchy for our financial instruments. Classifications will be based on the lowest level of input that is significant to the fair value measurement. The Company reviews the valuation of Level 3 financial instruments as part of our quarterly process. Valuation of Consolidated VIEs The Company reports the financial assets and liabilities of each consolidated CMBS trust at fair value using the measurement alternative included in Accounting Standards Update (“ASU”) No. 2014-13, Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity (“ASU 2014-13”). Pursuant to ASU 2014-13, both the financial assets and financial liabilities of the consolidated CMBS trusts are measured using the fair value of the financial liabilities (which are considered more observable than the fair value of the financial assets) and the equity of the CMBS trusts beneficially owned by the Company. As a result, the CMBS issued by the consolidated trusts, but not beneficially owned by us, are presented as financial liabilities in our consolidated financial statements, measured at their estimated fair value; the Company measured the financial assets as the total estimated fair value of the CMBS issued by the consolidated trust, regardless of whether such CMBS represent interests beneficially owned by the Company. Under the measurement alternative prescribed by ASU 2014-13, “Net income (loss)” reflects the economic interests in the consolidated CMBS beneficially owned by the Company, presented as “Change in net assets related to consolidated CMBS variable interest entities” in the Consolidated Statement of Operations, which includes applicable (1) changes in the fair value of CMBS beneficially owned by the Company, (2) interest income, interest expense and servicing fees earned from the CMBS trusts and (3) other residual returns or losses of the CMBS trusts, if any. Valuation Methodologies CMBS Trusts - The financial liabilities and equity of the consolidated CMBS trusts were valued using broker quotes. Broker quotes represent the price that an investment could be sold for in a market transaction and represent fair market value. Loans and bonds with quotes that are based on actual trades with a sufficient level of activity on or near the valuation date are classified as Level 2 assets. Loans and bonds that are priced using quotes derived from implied values, bid/ask prices for trades that were never consummated, or a limited amount of actual trades are classified as Level 3 assets because the inputs used by the brokers and pricing services to derive the values are not readily observable. CMBS Structured Pass Through Certificates - CMBS structured pass through certificates (“CMBS I/O Strips”) are categorized as Level 2 assets in the fair value hierarchy. CMBS I/O Strips are valued using broker quotes. Broker quotes represent the price that an investment could be sold for in a market transaction and represent fair market value. Loans and bonds with quotes that are based on actual trades with a sufficient level of activity on or near the valuation date are classified as Level 2 assets SFR Loans, Preferred Equity Investments and Mezzanine Loans - SFR Loans, preferred equity, and mezzanine loan investments are categorized as Level 3 assets in the fair value hierarchy. SFR Loans, preferred equity and mezzanine loan investments are valued using a discounted cash flow model using discount rates derived from observable market data applied to the internal rate of return implied by the expected contractual cash flows. The valuation is done for disclosure purposes only as these investments are not carried at fair value on the consolidated balance sheet. Common Stock Investment – The Common stock investment is categorized as a Level 3 asset in the fair value hierarchy. Despite our ability to exercise significant influence, the Company chose to value the investment in NexPoint Storage Partners, Inc. (“NSP”) using the fair value option in accordance with ASC 825-10. See Note 7 for additional disclosures regarding the fair value of this investment. Repurchase Agreements - The repurchase agreements are categorized as Level 3 liabilities in the fair value hierarchy as such liabilities represent borrowings on collateral with terms specific to each borrower. Given the short to moderate term of the floating-rate facilities, the Company expects the fair value of repurchase agreements to approximate their outstanding principal balances. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis - Certain assets not measured at fair value on an ongoing basis but that are subject to fair-value adjustments only in certain circumstances, such as when there is evidence of impairment, will be measured at fair value on a nonrecurring basis. For first mortgage loans, mezzanine loans and preferred equity investments, the Company applies the amortized cost method of accounting. Overall, our determination of fair value is based upon the best information available for a given circumstance and may incorporate assumptions that are our best estimates after consideration of a variety of internal and external factors. When an independent valuation firm expresses an opinion on the fair value of a financial instrument in the form of a range, the Company selects a value within the range provided by the independent valuation firm, generally the midpoint, to assess the reasonableness of our estimated fair value for that financial instrument. |
Income Taxes | Income Taxes The Company believes that it will operate in a manner that will allow it to qualify for taxation as a REIT under the Code, commencing with its taxable year ending December 31, 2020. As a result of the Company’s expected REIT qualification, the Company does not expect to pay U.S. federal corporate level taxes. To qualify as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement to distribute annually at least 90% of its “REIT taxable income,” as defined by the Code, to its stockholders. If the Company fails to meet these requirements, it could be subject to federal income tax on all of the Company’s taxable income at regular corporate rates for that year. The Company would not be able to deduct distributions paid to stockholders in any year in which it fails to qualify as a REIT. Additionally, the Company will also be disqualified from electing to be taxed as a REIT for the four taxable years following the year during which qualification was lost unless the Company is entitled to relief under specific statutory provisions. Taxable income from certain non-REIT activities is managed through a taxable REIT subsidiary (“TRS”), which is subject to U.S. federal and applicable state and local corporate income taxes. As of December 31, 2020, the Company believes it is in compliance with all applicable REIT requirements and had no significant taxes associated with its TRS. The Company evaluates the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing our tax returns to determine whether the tax positions are “more-likely-than-not” (greater than 50 percent probability) of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Our management is required to analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions, which include federal and certain states. There are no examinations in progress and none are expected at this time. The Company recognizes its tax positions and evaluates them using a two-step process. First, the Company determines whether a tax position is more likely than not to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Second, the Company will determine the amount of benefit to recognize and record the amount that is more likely than not to be realized upon ultimate settlement. The Company had no material unrecognized tax benefit or expense, accrued interest or penalties as of December 31, 2020. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Section 107 of the JOBS Act p rovides that an emerging growth company can take advantage of the extended transition period provided in Section 13(a) of the Securities Exchange Act of 1934, as amended, for complying with new or revised accounting standards applicable to public companies. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company has elected to take advantage of this extended transition period. As a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates for such new or revised standards. The Company may elect to comply with public company effective dates at any time, and such election would be irrevocable pursuant to Section 107(b) of the JOBS Act In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses on Financial Instruments This allowance is deducted from the financial asset’s amortized cost basis to present the net amount expected to be collected. The new expected credit loss model will also apply to purchased financial assets with credit deterioration, superseding current accounting guidance for such assets. The amended guidance also amends the impairment model for available-for-sale debt securities, requiring entities to determine whether all or a portion of the unrealized loss on such securities is a credit loss, and also eliminating the option for management to consider the length of time a security has been in an unrealized loss position as a factor in concluding whether or not a credit loss exists. The amended model states that an entity will recognize an allowance for credit losses on available-for-sale debt securities as a contra account to the amortized cost basis, instead of a direct reduction of the amortized cost basis of the investment, as under current guidance. As a result, entities will recognize improvements to estimated credit losses on available-for-sale debt securities immediately in earnings as opposed to in interest income over time. There are also additional disclosure requirements included in this guidance. The amended guidance is to be applied on a modified retrospective basis with the cumulative effect of initially applying the amendments recognized in retained earnings at the date of initial application. However, certain provisions of the guidance are only required to be applied on a prospective basis. That methodology replaces the probable, incurred loss model for those assets. The new standard is effective for the Company for annual and interim periods beginning after December 15, 2023. While the Company is currently evaluating the impact ASU 2016-13 will have on the Company’s consolidated financial statements, the ultimate impact will depend on the portfolio and facts and circumstances near the date of adoption. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326. Financial Instruments – Credit Losses In May 2019, the FASB issued ASU 2019-05, Targeted Transition Relief for Topic 326. Financial Instruments – Credit Losses In March 2020, the FASB issued AU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting |
Other Matters | Other Matters During the second quarter of 2020, immaterial errors were identified on the Q1 2020 consolidated statement of cash flows relating to the consolidation of the Company’s CMBS trusts where the Company is the primary beneficiary. The correction of these errors would result in an increase of approximately $28.2 million in investing cash inflows with a corresponding increase in financing cash outflows in the March 31, 2020 consolidated statement of cash flows. Additionally, for the three-month period ended March 31, 2020, the supplemental disclosures of non-cash investing and financing activities omitted non-cash increases in mortgage loans held in VIEs and non-cash increases in bonds payable from consolidated VIEs of approximately $48.0 million related to the consolidation of VIEs resulting from contributions of CMBS B-pieces in connection with the Formation Transaction. These errors have been corrected in the year-to-date cash flow information for 2020. As a result, the table in Note 2 presenting the contributed assets and liabilities has also been corrected to reflect increases of approximately $48.0 million to both the mortgage loans held in VIEs and bonds payable held in VIEs. There was no impact to total contributions. There was also no impact to the Consolidated Balance Sheets, the Consolidated Statement of Operations or the Consolidated Statement of Stockholders’ Equity. These errors have been corrected in the year-to-date cash flow information for 2020 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Par Values, Fair Values and Purchase Premiums (Discounts) of Initial Portfolio | The following table shows the par values, fair values and purchase premiums (discounts) of the Initial Portfolio as of February 11, 2020, the closing date of the IPO: Par value Fair Value Premium (Discount) Assets Cash $ 302 $ 302 $ — Loans, held-for-investment, net 22,127 22,282 155 Preferred stock 40,000 40,400 400 Mortgage loans, held-for-investment, net 863,564 934,918 71,354 Accrued interest and dividends 3,616 3,616 — Mortgage loans held in variable interest entities, at fair value 1,790,228 1,790,135 (93 ) $ 2,719,837 $ 2,791,653 $ 71,816 Liabilities Credit facility $ 788,764 $ 788,764 $ — Bridge facility 95,000 95,000 — Bonds payable held in variable interest entities, at fair value 1,655,960 1,655,960 — $ 2,539,724 $ 2,539,724 $ — Total contributions $ 180,113 $ 251,929 $ 71,816 |
Loans Held for Investment (Tabl
Loans Held for Investment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Summary of Loans Held for Investment | The following table summarizes our loans held for investment as of December 31, 2020 (dollars in thousands): Weighted Average Loan Type Outstanding Face Amount Carrying Value (1) Loan Count Fixed Rate (2) Coupon (3) Life (years) (4) December 31, 2020 SFR Loans, held-for-investment $ 854,365 $ 918,114 26 100.00 % 4.90 % 7.39 Mezzanine loans, held-for-investment 105,399 108,557 19 100.00 % 7.46 % 8.82 Preferred equity, held-for-investment 18,877 19,220 3 100.00 % 7.79 % 7.12 $ 978,641 $ 1,045,891 48 100.00 % 5.24 % 7.54 (1) Carrying value includes the outstanding face amount plus unamortized purchase premiums/discounts and any allowance for loan losses. (2) The weighted-average fixed rate is weighted on current principal balance. (3) The weighted-average coupon is weighted on current principal balance. (4) The weighted-average life is weighted on current principal balance and assumes no prepayments. The maturity date for preferred equity investments represents the maturity date of the senior mortgage on the underlying collateral, as the preferred equity investments require repayment upon the sale or refinancing of the asset. |
Summary of Loan and Preferred Equity Portfolio Activity | For the year ended December 31, 2020, the loan and preferred equity portfolio activity was as follows (in thousands): Held-for-Investment Total Balance at December 31, 2019 $ — $ — Contributions from noncontrolling interests in the OP 967,202 967,202 Acquisitions 108,610 108,610 Proceeds from principal repayments (1) (9,199 ) (9,199 ) Proceeds from redemption of mezzanine loan, net (2) (13,191 ) (13,191 ) Amortization of loan premium, net (3) (6,961 ) (6,961 ) Loan loss provision, net (4) (320 ) (320 ) Realized losses (250 ) (250 ) Balance at December 31, 2020 $ 1,045,891 $ 1,045,891 (1) Includes principal repayments on the SFR Loans including the complete paydown of one loan of $6.6 million. (2) Includes the redemption of one of the mezzanine loans, net of unamortized debt issuance costs of approximately $3.2 million, and one of the preferred equity investments of $10.0 million, net of unamortized debt issuance costs. (3) Includes net amortization of loan purchase premiums. (4) Based on management’s judgment and estimate of credit losses. See Note 2 for additional information. |
Principal Balance and Net Book Value of Loan Portfolio Based on Internal Risk Ratings | The following table allocates the principal balance and net book value of the loan portfolio based on our internal risk ratings (dollars in thousands): December 31, 2020 Number of Carrying % of Loan Risk Rating Loans Value Portfolio 1 — $ — — 2 — — — 3 48 1,045,891 100.00 % 4 — — — 5 — — — 48 $ 1,045,891 100.00 % |
Summary of Loans Held for Investment as Percentage of Loans Face Amount | The following tables present the geographies and property types of collateral underlying the Company’s loans held-for-investment as a percentage of the loans’ face amounts. This information is unaudited. Geography December 31, 2020 Georgia 39.81 % Florida 20.88 % Texas 7.66 % Maryland 7.26 % Minnesota 4.82 % Alabama 3.59 % New Jersey 1.98 % North Carolina 1.67 % Mississippi 1.03 % Missouri 1.01 % Other (19 states each at <1%) 10.28 % 100.00 % Collateral Property Type December 31, 2020 Single Family Rental 87.30 % Multifamily 12.70 % 100.00 % |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Company's Financing Arrangements | The following table summarizes the Company’s financing arrangements in place as of December 31, 2020: December 31, 2020 Facility Collateral Date issued Outstanding face amount Carrying value Final stated maturity Weighted average interest rate (1) Weighted average life (years) (2) Outstanding face amount Amortized cost basis Carrying value (3) Weighted average life (years) (2) Master Repurchase Agreements CMBS Mizuho (4) Apr 2020 161,465 161,465 N/A (5) 2.46 % 0.02 1,955,879 313,632 316,827 10.6 Asset Specific Financing Single Family Rental Freddie Mac 7/12/2019 780,539 780,539 3/1/2029 2.44 % 7.4 854,365 918,114 918,114 7.4 Mezzanine Freddie Mac 10/20/2020 59,914 59,914 8/1/2031 0.30 % 9.3 97,899 101,057 101,057 7.1 Unsecured Note Various 10/15/2020 36,500 34,960 10/25/2025 7.50 % 4.8 N/A N/A N/A N/A Total/weighted average $ 1,038,418 $ 1,036,878 2.50 % 6.27 $ 2,908,143 $ 1,332,803 $ 1,335,998 9.52 (1) Weighted-average interest rate using unpaid principal balances. (2) Weighted-average life is determined using the maximum maturity date of the corresponding loans, assuming all extension options are exercised by the borrower. (3) CMBS are shown at fair value. SFR Loans and mezzanine loans are shown at their carrying values. (4) In April 2020, three of our subsidiaries entered into a master repurchase agreement with Mizuho Securities (“Mizuho”). Borrowings under these repurchase agreements are collateralized by portions of the CMBS B-Pieces and CMBS I/O Strips. (5) The master repurchase agreement with Mizuho does not have a stated maturity date. The transactions in place have a one-month to two-month tenor and are expected to roll accordingly. |
Schedule of Outstanding Principal Balances Related to SFR Loans and Mezzanine Loans | As of December 31, 2020, the outstanding principal balances related to the SFR Loans and Mezzanine Loans consisted of the following (dollars in thousands): Outstanding Investment Principal Investment Date Balance Location Property Type Interest Type Interest Rate Maturity Date SFR Loans Senior loan 2/11/2020 $ 465,689 Various Single-family Fixed 2.24 % 9/1/2028 Senior loan 2/11/2020 9,200 Various Single-family Fixed 3.51 % 2/1/2028 Senior loan 2/11/2020 4,926 Various Single-family Fixed 2.48 % 8/1/2023 Senior loan 2/11/2020 9,597 Various Single-family Fixed 2.79 % 9/1/2028 Senior loan 2/11/2020 6,877 Various Single-family Fixed 2.69 % 7/1/2028 Senior loan 2/11/2020 5,180 Various Single-family Fixed 2.64 % 10/1/2028 Senior loan 2/11/2020 11,212 Various Single-family Fixed 3.02 % 10/1/2028 Senior loan 2/11/2020 7,638 Various Single-family Fixed 3.02 % 11/1/2028 Senior loan 2/11/2020 46,146 Various Single-family Fixed 2.14 % 10/1/2025 Senior loan 2/11/2020 8,922 Various Single-family Fixed 3.30 % 10/1/2028 Senior loan 2/11/2020 35,837 Various Single-family Fixed 2.70 % 11/1/2028 Senior loan 2/11/2020 5,911 Various Single-family Fixed 2.68 % 11/1/2028 Senior loan 2/11/2020 13,603 Various Single-family Fixed 2.61 % 11/1/2023 Senior loan 2/11/2020 5,346 Various Single-family Fixed 3.14 % 12/1/2028 Senior loan 2/11/2020 9,470 Various Single-family Fixed 3.02 % 12/1/2028 Senior loan 2/11/2020 9,937 Various Single-family Fixed 2.77 % 12/1/2028 Senior loan 2/11/2020 4,882 Various Single-family Fixed 2.97 % 1/1/2029 Senior loan 2/11/2020 8,389 Various Single-family Fixed 3.14 % 1/1/2029 Senior loan 2/11/2020 5,811 Various Single-family Fixed 2.40 % 2/1/2024 Senior loan 2/11/2020 4,279 Various Single-family Fixed 3.06 % 2/1/2029 Senior loan 2/11/2020 16,021 Various Single-family Fixed 2.91 % 2/1/2029 Senior loan 2/11/2020 6,992 Various Single-family Fixed 2.98 % 2/1/2029 Senior loan 2/11/2020 7,272 Various Single-family Fixed 2.80 % 2/1/2029 Senior loan 2/11/2020 6,129 Various Single-family Fixed 2.99 % 3/1/2029 Senior loan 2/11/2020 9,284 Various Single-family Fixed 2.45 % 3/1/2026 Senior loan 2/11/2020 55,988 Various Single-family Fixed 2.70 % 3/1/2029 Total $ 780,539 2.44 % Mezzanine Loans Senior loan 10/20/2020 $ 3,348 Wilmington, DE Multifamily Fixed 0.30 % 5/1/2029 Senior loan 10/20/2020 6,353 White Marsh, MD Multifamily Fixed 0.30 % 7/1/2031 Senior loan 10/20/2020 8,723 Philadelphia, PA Multifamily Fixed 0.30 % 6/1/2029 Senior loan 10/20/2020 2,264 Daytona Beach, FL Multifamily Fixed 0.30 % 10/1/2028 Senior loan 10/20/2020 7,344 Laurel, MD Multifamily Fixed 0.30 % 4/1/2031 Senior loan 10/20/2020 1,836 Temple Hills, MD Multifamily Fixed 0.30 % 8/1/2031 Senior loan 10/20/2020 918 Temple Hills, MD Multifamily Fixed 0.30 % 8/1/2031 Senior loan 10/20/2020 3,390 Lakewood, NJ Multifamily Fixed 0.30 % 5/1/2029 Senior loan 10/20/2020 2,215 Rosedale, MD Multifamily Fixed 0.30 % 7/1/2031 Senior loan 10/20/2020 4,179 North Aurora, IL Multifamily Fixed 0.30 % 1/1/2029 Senior loan 10/20/2020 5,881 Cockeysville, MD Multifamily Fixed 0.30 % 7/1/2031 Senior loan 10/20/2020 4,523 Laurel, MD Multifamily Fixed 0.30 % 7/1/2031 Senior loan 10/20/2020 662 Vancouver, WA Multifamily Fixed 0.30 % 11/1/2030 Senior loan 10/20/2020 1,307 Tyler, TX Multifamily Fixed 0.30 % 10/1/2028 Senior loan 10/20/2020 728 Las Vegas, NV Multifamily Fixed 0.30 % 3/1/2029 Senior loan 10/20/2020 2,026 Atlanta, GA Multifamily Fixed 0.30 % 7/1/2029 Senior loan 10/20/2020 1,763 Des Moines, IA Multifamily Fixed 0.30 % 11/1/2028 Senior loan 10/20/2020 2,454 Urbandale, IA Multifamily Fixed 0.30 % 11/1/2028 Total $ 59,914 0.30 % |
Activity Related to Carrying Value of Secured Financing Agreements and Master Repurchase Agreements | For the year ended December 31, 2020, the activity related to the carrying value of the secured financing agreements and master repurchase agreements were as follows (in thousands): Balances as of December 31, 2019 $ — Assumption of debt 883,764 Principal borrowings 344,291 Principal repayments (191,233 ) Accretion of loan discounts 56 Balances as of December 31, 2020 $ 1,036,878 |
Summary of Aggregate Scheduled Maturities of Total Debt | The aggregate scheduled maturities, including amortizing principal payments, of total debt for the next five calendar years subsequent to December 31, 2020 are as follows (in thousands): Year Recourse Non-recourse Total 2020 (1) $ — $ (161,465 ) $ (161,465 ) 2021 — — — 2022 — — — 2023 — (18,530 ) (18,530 ) 2024 — (5,811 ) (5,811 ) Thereafter (36,500 ) (816,112 ) (852,612 ) $ (36,500 ) $ (1,001,918 ) $ (1,038,418 ) (1) The transactions in place in the master repurchase agreement with Mizuho have a one-month to two-month tenor and are expected to roll accordingly. |
CMBS Trusts (Tables)
CMBS Trusts (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Statement Of Financial Position [Abstract] | |
Schedule of Recognized Trust's Assets and Liabilities | The following table presents the Company’s recognized Trust’s Assets and Liabilities (in thousands): Trust's Assets December 31, 2020 Mortgage loans held in variable interest entities, at fair value $ 5,007,515 Accrued interest receivable 1,063 Trust's Liabilities Bonds payable held in variable interest entities, at fair value (4,731,429 ) Accrued interest payable (794 ) |
Schedule of Change in Net Assets Related to Consolidated CMBS Variable Interest Entities | The following table presents “Change in net assets related to consolidated CMBS variable interest entities” (in thousands): For the Year Ended December 31, 2020 Net interest earned $ 15,902 Unrealized gain 4,030 Change in net assets related to consolidated CMBS variable interest entities $ 19,932 |
Schedule of Geographies and Property Types of Collateral Underlying the CMBS Trusts as Percentage of Collateral Unpaid Principal Balance | The following tables present the geographies and property types of collateral underlying the CMBS trusts consolidated by the Company as a percentage of the collateral unpaid principal balance. This information is unaudited. Geography December 31, 2020 Collateral Property Type December 31, 2020 Florida 16.25 % Multifamily 98.12 % Texas 15.02 % Manufactured Housing 1.88 % Arizona 11.80 % 100.00 % California 8.25 % Georgia 7.05 % Washington 5.76 % Nevada 4.12 % New Jersey 4.14 % New York 3.00 % Pennsylvania 3.30 % Indiana 2.42 % Colorado 2.26 % Virginia 2.09 % Ohio 2.00 % North Carolina 1.98 % Tennessee 1.45 % Utah 1.33 % Maryland 1.32 % Missouri 1.20 % South Carolina 1.08 % Other (15 states each at <1%) 4.21 % 100.00 % |
Preferred Stock (Tables)
Preferred Stock (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders Equity Note [Abstract] | |
Schedule of Preferred Stock Investments | The following table presents the preferred stock investments as of November 6, 2020 (in thousands, except share amounts): Investment Investment Date Shares Carrying Value (1) Property Type Interest Rate (2) Maturity Date Preferred Stock Jernigan Capital 2/11/2020 41,881 $ 42,147 Self-storage 7.00 % 12/31/2021 (1) Carrying value includes an unamortized purchase premium of approximately $0.3 million. (2) Represents the 7% cash dividend and excludes the effect of the quarterly stock dividend. |
Schedule of Activity Related to Preferred Stock Investments | The following table presents activity related to the Company’s preferred stock investments (in thousands): For the Year Ended December 31, 2020 Dividend income $ 6,466 Amortization of premium on preferred stock investment (157 ) $ 6,309 |
Common Stock (Tables)
Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule Of Investments [Abstract] | |
Schedule of Common Stock Investments | The following table presents the common stock investments as of December 31, 2020. (in thousands, except share amounts): Investment Investment Date Shares Fair Value Property Type Common Stock NexPoint Storage Partners 11/6/2020 41,963 $ 44,626 Self-storage |
Schedule of Activity Related to Conversion of Preferred Stock to Common Stock | The following table presents the activity related to the conversion of JCAP preferred stock to NSP common stock: For the Year Ended December 31, 2020 Contribution of preferred stock $ 40,400 Amortization of premium (157 ) Realized loss on conversion (243 ) Non-cash stock dividends received 1,881 Make-whole premium 2,094 Accrued interest and dividends 564 Purchases of common stock 87 Fair value adjustment — NSP common stock carrying value as of December 31, 2020 $ 44,626 |
CMBS Structured Pass Through _2
CMBS Structured Pass Through Certificates (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Mortgage Loans On Real Estate [Abstract] | |
Summary of CMBS I/O Strips | The following table presents the CMBS I/O Strips as of December 31, 2020 (in thousands): Investment Investment Date Carrying Value Property Type Interest Rate Current Yield Maturity Date CMBS I/O Strips CMBS I/O Strip 4/15/2020 $ 966 Multifamily 3.40 % 12.32 % 1/25/2037 CMBS I/O Strip 4/15/2020 885 Multifamily 2.93 % 12.88 % 12/25/2037 CMBS I/O Strip 5/18/2020 2,520 Multifamily 2.02 % 14.43 % 9/25/2046 CMBS I/O Strip 8/6/2020 8,542 Multifamily 0.10 % 13.45 % 6/25/2030 CMBS I/O Strip 8/6/2020 1,796 Multifamily 0.10 % 14.46 % 6/25/2030 CMBS I/O Strip 8/6/2020 24,275 Multifamily 2.98 % 13.30 % 5/25/2048 Total $ 38,984 |
Schedule of Activity Related to CMBS I/O Strips | The following table presents activity related to the Company’s CMBS I/O Strips (in thousands): For the Year Ended December 31, 2020 Interest income $ 1,124 Change in unrealized gain on CMBS structured pass through certificates (49 ) $ 1,075 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Values and Fair Values of Financial Assets and Liabilities Recorded at Fair Value on a Recurring Basis | The carrying values and fair values of the Company’s financial assets and liabilities recorded at fair value on a recurring basis, as well as other financial instruments not carried at fair value as of December 31, 2020 (in thousands): Fair Value Carrying Value Level 1 Level 2 Level 3 Total Assets Cash and cash equivalents $ 30,241 $ 30,241 $ — $ — $ 30,241 Restricted cash 3,230 3,230 — — 3,230 Loans, held-for-investment, net 127,777 — — 128,154 128,154 Common stock 44,626 — — 44,626 44,626 Mortgage loans, held-for-investment, net 918,114 — — 906,561 906,561 Accrued interest and dividends 5,078 5,078 — — 5,078 Mortgage loans held in variable interest entities, at fair value 5,007,515 — 5,007,515 — 5,007,515 CMBS structured pass through certificates, at fair value 38,984 — 38,984 — 38,984 Other assets 745 745 — — 745 $ 6,176,310 $ 39,294 $ 5,046,499 $ 1,079,341 $ 6,165,134 Liabilities Secured financing agreements, net $ 840,453 $ — $ — $ 859,331 $ 859,331 Master repurchase agreements 161,465 — — 161,465 161,465 Unsecured Notes 34,960 — — 34,960 34,960 Accounts payable and other accrued liabilities 1,779 1,779 — — 1,779 Accrued interest payable 2,311 2,311 — — 2,311 Bonds payable held in variable interest entities, at fair value 4,731,429 — 4,731,429 — 4,731,429 $ 5,772,397 $ 4,090 $ 4,731,429 $ 1,055,756 $ 5,791,275 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Summary of Number of Restricted Stock Units Granted, Vested, Forfeited and Outstanding | The following table includes the number of restricted stock units granted, vested, forfeited and outstanding as of December 31, 2020: 2020 Number of Units Weighted Average Grant Date Fair Value Outstanding January 1, 2020 — $ — Granted 290,851 12.12 Vested — — Forfeited — — Outstanding December 31, 2020 290,851 $ 12.12 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings (Loss) Per Share | The following table sets forth the computation of basic and diluted earnings (loss) per share for the periods presented (in thousands, except per share amounts): For the Year Ended December 31, 2020 Net income attributable to common stockholders $ 11,099 Earnings for basic computations Net income attributable to redeemable noncontrolling interests 21,323 Net income for diluted computations $ 32,422 Weighted-average common shares outstanding Average number of common shares outstanding - basic 5,206 Average number of unvested restricted stock units 172 Average number of OP Units 13,270 Average number of common shares outstanding - diluted 18,648 Earnings (loss) per weighted average common share: Basic $ 2.13 Diluted $ 1.74 |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Noncontrolling Interest [Abstract] | |
Schedule of Redeemable Noncontrolling Interests | The following table sets forth the redeemable noncontrolling interests in the OP (reflecting the OP’s consolidation of the Subsidiary OPs) for the year ended December 31, 2020 (in thousands): Redeemable noncontrolling interests in the OP, December 31, 2019 $ — Contributions from redeemable noncontrolling interests in the OP 273,410 Net income attributable to redeemable noncontrolling interests in the OP 21,323 Distributions to redeemable noncontrolling interests in the OP (19,063 ) Redeemable noncontrolling interests in the OP, December 31, 2020 $ 275,670 |
Organization and Description _2
Organization and Description of Business - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Real Estate Properties [Line Items] | |
Date of incorporation | Jun. 7, 2019 |
OP | |
Real Estate Properties [Line Items] | |
Limited partner ownership percentage | 50.28% |
SubOP | Two Subsidiary Partnerships | |
Real Estate Properties [Line Items] | |
Limited partner ownership percentage | 27.78% |
SubOP | One Subsidiary Partnerships | |
Real Estate Properties [Line Items] | |
Limited partner ownership percentage | 100.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | Jan. 29, 2021Individual | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($)Loan | Jan. 14, 2021USD ($) |
Summary Of Significant Accounting Policies [Line Items] | ||||
Percentage of loan unpaid principal balance outstanding | 2.44% | |||
Loans that were considered troubled debt restructurings | Loan | 0 | |||
Minimum percentage of distributed taxable income to qualify as REIT | 90.00% | |||
Unrecognized tax benefit or expense, accrued interest or penalties | $ 0 | |||
Increase in investing cash inflows | (68,261,000) | |||
Increase in financing cash outflows | $ 68,830,000 | |||
Financial Asset Acquired with Deteriorated Credit Quality | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of loans acquired | Loan | 0 | |||
Minimum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Loans delinquency period | 120 days | |||
Percentage of uncertain tax positions likelihood of being sustained | 50.00% | |||
OP | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Limited partner ownership percentage | 50.28% | |||
CMBS Trusts | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Variable interest entity, ownership percentage | 100.00% | |||
CMBS Trusts | Restatement Adjustment | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Increase in investing cash inflows | $ 28,200,000 | |||
Increase in financing cash outflows | 28,200,000 | |||
CMBS B-Piece Investments | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of forbearance requests on loan | Loan | 2 | |||
Percentage of loan unpaid principal balance outstanding | 0.80% | |||
CMBS B-Piece Investments | Restatement Adjustment | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Omitted non-cash increases in mortgage loans and bonds payable held in variable interest entities | $ 48,000,000 | |||
SFR Loans | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of forbearance requests on loan | Loan | 9 | |||
Subsequent Event | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of individuals fully vaccinated for COVID-19 | Individual | 4,700,000 | |||
CARES Act of 2020 aid proposal amount | $ 1,900,000,000,000 | |||
Direct payments to eligible persons under American Rescue Plan | $ 1,400 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Par Values, Fair Values and Purchase Premiums (Discounts) of Initial Portfolio (Details) $ in Thousands | Feb. 11, 2020USD ($) |
Par Value | |
Assets | |
Cash | $ 302 |
Loans, held-for-investment, net | 22,127 |
Preferred stock | 40,000 |
Mortgage loans, held-for-investment, net | 863,564 |
Accrued interest and dividends | 3,616 |
Mortgage loans held in variable interest entities, at fair value | 1,790,228 |
Assets | 2,719,837 |
Liabilities | |
Credit facility | 788,764 |
Bridge facility | 95,000 |
Bonds payable held in variable interest entities, at fair value | 1,655,960 |
Liabilities | 2,539,724 |
Total contributions | 180,113 |
Fair Value | |
Assets | |
Cash | 302 |
Loans, held-for-investment, net | 22,282 |
Preferred stock | 40,400 |
Mortgage loans, held-for-investment, net | 934,918 |
Accrued interest and dividends | 3,616 |
Mortgage loans held in variable interest entities, at fair value | 1,790,135 |
Assets | 2,791,653 |
Liabilities | |
Credit facility | 788,764 |
Bridge facility | 95,000 |
Bonds payable held in variable interest entities, at fair value | 1,655,960 |
Liabilities | 2,539,724 |
Total contributions | 251,929 |
Premium (Discount) | |
Assets | |
Loans, held-for-investment, net | 155 |
Preferred stock | 400 |
Mortgage loans, held-for-investment, net | 71,354 |
Mortgage loans held in variable interest entities, at fair value | (93) |
Assets | 71,816 |
Liabilities | |
Total contributions | $ 71,816 |
Loans Held for Investment - Sum
Loans Held for Investment - Summary of Loans Held for Investment (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)Loan | |
Accounts Notes And Loans Receivable [Line Items] | |
Outstanding Face Amount | $ 978,641 |
Carrying Value | $ 1,045,891 |
Loan Count | Loan | 48 |
Weighted Average Fixed Rate | 100.00% |
Weighted Average Coupon | 5.24% |
Weighted Average Life (years) | 7 years 6 months 14 days |
SFR Loans Held-For-Investment | |
Accounts Notes And Loans Receivable [Line Items] | |
Outstanding Face Amount | $ 854,365 |
Carrying Value | $ 918,114 |
Loan Count | Loan | 26 |
Weighted Average Fixed Rate | 100.00% |
Weighted Average Coupon | 4.90% |
Weighted Average Life (years) | 7 years 4 months 20 days |
Mezzanine Loans Held-For-Investment | |
Accounts Notes And Loans Receivable [Line Items] | |
Outstanding Face Amount | $ 105,399 |
Carrying Value | $ 108,557 |
Loan Count | Loan | 19 |
Weighted Average Fixed Rate | 100.00% |
Weighted Average Coupon | 7.46% |
Weighted Average Life (years) | 8 years 9 months 25 days |
Preferred Equity, Held-for-Investment | |
Accounts Notes And Loans Receivable [Line Items] | |
Outstanding Face Amount | $ 18,877 |
Carrying Value | $ 19,220 |
Loan Count | Loan | 3 |
Weighted Average Fixed Rate | 100.00% |
Weighted Average Coupon | 7.79% |
Weighted Average Life (years) | 7 years 1 month 13 days |
Loans Held for Investment - S_2
Loans Held for Investment - Summary of Loan and Preferred Equity Portfolio Activity (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Accounts Notes And Loans Receivable [Line Items] | |
Contributions from noncontrolling interests in the OP | $ 967,202 |
Acquisitions | 108,610 |
Proceeds from principal repayments | (9,199) |
Proceeds from redemption of mezzanine loan, net | (13,191) |
Amortization of loan premium, net | (6,961) |
Loan loss provision, net | (320) |
Realized losses | (250) |
Balance at December 31, 2020 | 1,045,891 |
Held-For-Investment | |
Accounts Notes And Loans Receivable [Line Items] | |
Contributions from noncontrolling interests in the OP | 967,202 |
Acquisitions | 108,610 |
Proceeds from principal repayments | (9,199) |
Proceeds from redemption of mezzanine loan, net | (13,191) |
Amortization of loan premium, net | (6,961) |
Loan loss provision, net | (320) |
Realized losses | (250) |
Balance at December 31, 2020 | $ 1,045,891 |
Loans Held for Investment - S_3
Loans Held for Investment - Summary of Loan and Preferred Equity Portfolio Activity (Parenthetical) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Accounts Notes And Loans Receivable [Line Items] | |
Principal repayments of paydown | $ 9,199 |
Mezzanine Loans Held-For-Investment | |
Accounts Notes And Loans Receivable [Line Items] | |
Unamortized debt issuance costs | 3,200 |
Preferred Equity, Held-for-Investment | |
Accounts Notes And Loans Receivable [Line Items] | |
Unamortized debt issuance costs | 10,000 |
SFR Loans | |
Accounts Notes And Loans Receivable [Line Items] | |
Principal repayments of paydown | $ 6,600 |
Loans Held for Investment - Add
Loans Held for Investment - Additional Information (Details) $ in Millions | Dec. 31, 2020USD ($) |
Accounts Notes Loans And Financing Receivable Gross Allowance And Net [Abstract] | |
Unamortized premiums on loans held-for-investment | $ 67.6 |
Loans Held for Investment - Pri
Loans Held for Investment - Principal Balance and Net Book Value of Loan Portfolio Based on Internal Risk Ratings (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)Loan | |
Accounts Notes And Loans Receivable [Line Items] | |
Number of Loans | Loan | 48 |
Carrying Value | $ | $ 1,045,891 |
% of Loan Portfolio | 100.00% |
Risk Rating 3 | |
Accounts Notes And Loans Receivable [Line Items] | |
Number of Loans | Loan | 48 |
Carrying Value | $ | $ 1,045,891 |
% of Loan Portfolio | 100.00% |
Loans Held for Investment - S_4
Loans Held for Investment - Summary of Loans Held for Investment as Percentage of Loans Face Amount (Details) | Dec. 31, 2020 |
Accounts Notes And Loans Receivable [Line Items] | |
Percent of loans held for investment | 100.00% |
Single Family Rental | |
Accounts Notes And Loans Receivable [Line Items] | |
Percent of loans held for investment | 87.30% |
Multifamily | |
Accounts Notes And Loans Receivable [Line Items] | |
Percent of loans held for investment | 12.70% |
Georgia | |
Accounts Notes And Loans Receivable [Line Items] | |
Percent of loans held for investment | 39.81% |
Florida | |
Accounts Notes And Loans Receivable [Line Items] | |
Percent of loans held for investment | 20.88% |
Texas | |
Accounts Notes And Loans Receivable [Line Items] | |
Percent of loans held for investment | 7.66% |
Maryland | |
Accounts Notes And Loans Receivable [Line Items] | |
Percent of loans held for investment | 7.26% |
Minnesota | |
Accounts Notes And Loans Receivable [Line Items] | |
Percent of loans held for investment | 4.82% |
Alabama | |
Accounts Notes And Loans Receivable [Line Items] | |
Percent of loans held for investment | 3.59% |
New Jersey | |
Accounts Notes And Loans Receivable [Line Items] | |
Percent of loans held for investment | 1.98% |
North Carolina | |
Accounts Notes And Loans Receivable [Line Items] | |
Percent of loans held for investment | 1.67% |
Mississippi | |
Accounts Notes And Loans Receivable [Line Items] | |
Percent of loans held for investment | 1.03% |
Missouri | |
Accounts Notes And Loans Receivable [Line Items] | |
Percent of loans held for investment | 1.01% |
Other (19 States Each at Less Than 1%) | |
Accounts Notes And Loans Receivable [Line Items] | |
Percent of loans held for investment | 10.28% |
Debt - Summary of Company's Fin
Debt - Summary of Company's Financing Arrangements (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($) | ||
Asset Specific Financing | Facility | ||
Debt Instrument [Line Items] | ||
Outstanding face amount | $ 1,038,418 | |
Carrying value | $ 1,036,878 | |
Weighted average interest rate | 2.50% | [1] |
Weighted average life (years) | 6 years 3 months 7 days | [2] |
Asset Specific Financing | Collateral | ||
Debt Instrument [Line Items] | ||
Outstanding face amount | $ 2,908,143 | |
Amortized cost basis | 1,332,803 | |
Carrying value | $ 1,335,998 | [3] |
Weighted average life (years) | 9 years 6 months 7 days | [2] |
Mizuho | Master Repurchase Agreements | Facility | CMBS | ||
Debt Instrument [Line Items] | ||
Date issued | Apr. 30, 2020 | [4] |
Outstanding face amount | $ 161,465 | [4] |
Carrying value | $ 161,465 | [4] |
Weighted average interest rate | 2.46% | [1],[4] |
Weighted average life (years) | 7 days | [2],[4] |
Mizuho | Master Repurchase Agreements | Collateral | CMBS | ||
Debt Instrument [Line Items] | ||
Outstanding face amount | $ 1,955,879 | [4] |
Amortized cost basis | 313,632 | [4] |
Carrying value | $ 316,827 | [3],[4] |
Weighted average life (years) | 10 years 7 months 6 days | [2],[4] |
Freddie Mac | Asset Specific Financing | Facility | ||
Debt Instrument [Line Items] | ||
Date issued | Jul. 12, 2019 | |
Outstanding face amount | $ 780,539 | |
Carrying value | $ 780,539 | |
Final stated maturity | Mar. 1, 2029 | |
Weighted average interest rate | 2.44% | [1] |
Weighted average life (years) | 7 years 4 months 24 days | [2] |
Freddie Mac | Asset Specific Financing | Facility | Mezzanine | ||
Debt Instrument [Line Items] | ||
Date issued | Oct. 20, 2020 | |
Outstanding face amount | $ 59,914 | |
Carrying value | $ 59,914 | |
Final stated maturity | Aug. 1, 2031 | |
Weighted average interest rate | 0.30% | [1] |
Weighted average life (years) | 9 years 3 months 18 days | [2] |
Freddie Mac | Asset Specific Financing | Collateral | ||
Debt Instrument [Line Items] | ||
Outstanding face amount | $ 854,365 | |
Amortized cost basis | 918,114 | |
Carrying value | $ 918,114 | [3] |
Weighted average life (years) | 7 years 4 months 24 days | [2] |
Freddie Mac | Asset Specific Financing | Collateral | Mezzanine | ||
Debt Instrument [Line Items] | ||
Outstanding face amount | $ 97,899 | |
Amortized cost basis | 101,057 | |
Carrying value | $ 101,057 | [3] |
Weighted average life (years) | 7 years 1 month 6 days | [2] |
Various | Asset Specific Financing | Facility | Unsecured Note | ||
Debt Instrument [Line Items] | ||
Date issued | Oct. 15, 2020 | |
Outstanding face amount | $ 36,500 | |
Carrying value | $ 34,960 | |
Final stated maturity | Oct. 25, 2025 | |
Weighted average interest rate | 7.50% | [1] |
Weighted average life (years) | 4 years 9 months 18 days | [2] |
[1] | Weighted-average interest rate using unpaid principal balances. | |
[2] | Weighted-average life is determined using the maximum maturity date of the corresponding loans, assuming all extension options are exercised by the borrower. | |
[3] | CMBS are shown at fair value. SFR Loans and mezzanine loans are shown at their carrying values. | |
[4] | In April 2020, three of our subsidiaries entered into a master repurchase agreement with Mizuho Securities (“Mizuho”). Borrowings under these repurchase agreements are collateralized by portions of the CMBS B-Pieces and CMBS I/O Strips. |
Debt - Additional Information (
Debt - Additional Information (Details) | Oct. 20, 2020USD ($)Loan | Oct. 15, 2020USD ($) | Aug. 07, 2020USD ($) | Jul. 30, 2020USD ($) | Feb. 07, 2020USD ($) | Jul. 12, 2019USD ($)Subsidiary | Dec. 31, 2020USD ($) | Feb. 11, 2020USD ($) |
Debt Instrument [Line Items] | ||||||||
Proceeds from long-term lines of credit | $ 163,473,000 | |||||||
Long-term line of credit, total | 780,539,000 | |||||||
Proceeds received from unsecured notes offering, net | 34,904,000 | |||||||
Mezzanine | ||||||||
Debt Instrument [Line Items] | ||||||||
Loans and leases receivable, number of loans | Loan | 18 | |||||||
Loans and leases receivable, gross, total | $ 97,900,000 | |||||||
Loans and leases receivable, weighted average fixed rate | 7.54% | |||||||
Percentage of acquired loans held for investment face amount | 102.00% | |||||||
Interest receivable | $ 300,000 | |||||||
Unsecured Note | OP | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, interest rate, stated percentage | 7.50% | |||||||
Outstanding face amount | $ 36,500,000 | |||||||
Debt instrument par value percentage | 99.00% | |||||||
Proceeds received from unsecured notes offering, net | $ 36,100,000 | |||||||
Freddie Mac | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of subsidiaries | Subsidiary | 2 | |||||||
Credit facility, maturity date | Jul. 12, 2029 | |||||||
Credit Facility | CMBS | ||||||||
Debt Instrument [Line Items] | ||||||||
Proceeds from long-term lines of credit | 161,500,000 | |||||||
Credit Facility | Freddie Mac | ||||||||
Debt Instrument [Line Items] | ||||||||
Proceeds from long-term lines of credit | $ 788,800,000 | |||||||
Long-term line of credit, total | 780,500,000 | $ 788,800,000 | ||||||
Line of credit facility, remaining borrowing capacity | $ 0 | |||||||
Proceeds from lines of credit, total | $ 59,900,000 | |||||||
Weighted average interest rate | 0.30% | |||||||
Credit Facility | Mizuho | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, collateral amount | $ 2,000,000,000 | |||||||
Bridge Facility | KeyBank | ||||||||
Debt Instrument [Line Items] | ||||||||
Bridge loan | $ 95,000,000 | |||||||
Proceeds form short-term debt, total | $ 95,000,000 | |||||||
RJ Bridge Facility | Raymond James, Bank, N.A. | ||||||||
Debt Instrument [Line Items] | ||||||||
Bridge loan | $ 86,000,000 | |||||||
Proceeds form short-term debt, total | $ 65,000,000 | $ 21,000,000 |
Debt - Schedule of Outstanding
Debt - Schedule of Outstanding Principal Balances Related to SFR Loans and Mezzanine Loans (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Debt Instrument [Line Items] | |
Outstanding Principal Balance | $ 780,539 |
Interest Rate | 2.44% |
Senior Loan | Single Family Rental | Debt Instrument One | |
Debt Instrument [Line Items] | |
Investment Date | Feb. 11, 2020 |
Outstanding Principal Balance | $ 465,689 |
Interest Type | Fixed |
Interest Rate | 2.24% |
Maturity Date | Sep. 1, 2028 |
Senior Loan | Single Family Rental | Debt Instrument Two | |
Debt Instrument [Line Items] | |
Investment Date | Feb. 11, 2020 |
Outstanding Principal Balance | $ 9,200 |
Interest Type | Fixed |
Interest Rate | 3.51% |
Maturity Date | Feb. 1, 2028 |
Senior Loan | Single Family Rental | Debt Instrument Three | |
Debt Instrument [Line Items] | |
Investment Date | Feb. 11, 2020 |
Outstanding Principal Balance | $ 4,926 |
Interest Type | Fixed |
Interest Rate | 2.48% |
Maturity Date | Aug. 1, 2023 |
Senior Loan | Single Family Rental | Debt Instrument Four | |
Debt Instrument [Line Items] | |
Investment Date | Feb. 11, 2020 |
Outstanding Principal Balance | $ 9,597 |
Interest Type | Fixed |
Interest Rate | 2.79% |
Maturity Date | Sep. 1, 2028 |
Senior Loan | Single Family Rental | Debt Instrument Five | |
Debt Instrument [Line Items] | |
Investment Date | Feb. 11, 2020 |
Outstanding Principal Balance | $ 6,877 |
Interest Type | Fixed |
Interest Rate | 2.69% |
Maturity Date | Jul. 1, 2028 |
Senior Loan | Single Family Rental | Debt Instrument Six | |
Debt Instrument [Line Items] | |
Investment Date | Feb. 11, 2020 |
Outstanding Principal Balance | $ 5,180 |
Interest Type | Fixed |
Interest Rate | 2.64% |
Maturity Date | Oct. 1, 2028 |
Senior Loan | Single Family Rental | Debt Instrument Seven | |
Debt Instrument [Line Items] | |
Investment Date | Feb. 11, 2020 |
Outstanding Principal Balance | $ 11,212 |
Interest Type | Fixed |
Interest Rate | 3.02% |
Maturity Date | Oct. 1, 2028 |
Senior Loan | Single Family Rental | Debt Instrument Eight | |
Debt Instrument [Line Items] | |
Investment Date | Feb. 11, 2020 |
Outstanding Principal Balance | $ 7,638 |
Interest Type | Fixed |
Interest Rate | 3.02% |
Maturity Date | Nov. 1, 2028 |
Senior Loan | Single Family Rental | Debt Instrument Nine | |
Debt Instrument [Line Items] | |
Investment Date | Feb. 11, 2020 |
Outstanding Principal Balance | $ 46,146 |
Interest Type | Fixed |
Interest Rate | 2.14% |
Maturity Date | Oct. 1, 2025 |
Senior Loan | Single Family Rental | Debt Instrument Ten | |
Debt Instrument [Line Items] | |
Investment Date | Feb. 11, 2020 |
Outstanding Principal Balance | $ 8,922 |
Interest Type | Fixed |
Interest Rate | 3.30% |
Maturity Date | Oct. 1, 2028 |
Senior Loan | Single Family Rental | Debt Instrument Eleven | |
Debt Instrument [Line Items] | |
Investment Date | Feb. 11, 2020 |
Outstanding Principal Balance | $ 35,837 |
Interest Type | Fixed |
Interest Rate | 2.70% |
Maturity Date | Nov. 1, 2028 |
Senior Loan | Single Family Rental | Debt Instrument Twelve | |
Debt Instrument [Line Items] | |
Investment Date | Feb. 11, 2020 |
Outstanding Principal Balance | $ 5,911 |
Interest Type | Fixed |
Interest Rate | 2.68% |
Maturity Date | Nov. 1, 2028 |
Senior Loan | Single Family Rental | Debt Instrument Thirteen | |
Debt Instrument [Line Items] | |
Investment Date | Feb. 11, 2020 |
Outstanding Principal Balance | $ 13,603 |
Interest Type | Fixed |
Interest Rate | 2.61% |
Maturity Date | Nov. 1, 2023 |
Senior Loan | Single Family Rental | Debt Instrument Fourteen | |
Debt Instrument [Line Items] | |
Investment Date | Feb. 11, 2020 |
Outstanding Principal Balance | $ 5,346 |
Interest Type | Fixed |
Interest Rate | 3.14% |
Maturity Date | Dec. 1, 2028 |
Senior Loan | Single Family Rental | Debt Instrument Fifteen | |
Debt Instrument [Line Items] | |
Investment Date | Feb. 11, 2020 |
Outstanding Principal Balance | $ 9,470 |
Interest Type | Fixed |
Interest Rate | 3.02% |
Maturity Date | Dec. 1, 2028 |
Senior Loan | Single Family Rental | Debt Instrument Sixteen | |
Debt Instrument [Line Items] | |
Investment Date | Feb. 11, 2020 |
Outstanding Principal Balance | $ 9,937 |
Interest Type | Fixed |
Interest Rate | 2.77% |
Maturity Date | Dec. 1, 2028 |
Senior Loan | Single Family Rental | Debt Instrument Seventeen | |
Debt Instrument [Line Items] | |
Investment Date | Feb. 11, 2020 |
Outstanding Principal Balance | $ 4,882 |
Interest Type | Fixed |
Interest Rate | 2.97% |
Maturity Date | Jan. 1, 2029 |
Senior Loan | Single Family Rental | Debt Instrument Eighteen | |
Debt Instrument [Line Items] | |
Investment Date | Feb. 11, 2020 |
Outstanding Principal Balance | $ 8,389 |
Interest Type | Fixed |
Interest Rate | 3.14% |
Maturity Date | Jan. 1, 2029 |
Senior Loan | Single Family Rental | Debt Instrument Nineteen | |
Debt Instrument [Line Items] | |
Investment Date | Feb. 11, 2020 |
Outstanding Principal Balance | $ 5,811 |
Interest Type | Fixed |
Interest Rate | 2.40% |
Maturity Date | Feb. 1, 2024 |
Senior Loan | Single Family Rental | Debt Instrument Twenty | |
Debt Instrument [Line Items] | |
Investment Date | Feb. 11, 2020 |
Outstanding Principal Balance | $ 4,279 |
Interest Type | Fixed |
Interest Rate | 3.06% |
Maturity Date | Feb. 1, 2029 |
Senior Loan | Single Family Rental | Debt Instrument Twenty One | |
Debt Instrument [Line Items] | |
Investment Date | Feb. 11, 2020 |
Outstanding Principal Balance | $ 16,021 |
Interest Type | Fixed |
Interest Rate | 2.91% |
Maturity Date | Feb. 1, 2029 |
Senior Loan | Single Family Rental | Debt Instrument Twenty Two | |
Debt Instrument [Line Items] | |
Investment Date | Feb. 11, 2020 |
Outstanding Principal Balance | $ 6,992 |
Interest Type | Fixed |
Interest Rate | 2.98% |
Maturity Date | Feb. 1, 2029 |
Senior Loan | Single Family Rental | Debt Instrument Twenty Three | |
Debt Instrument [Line Items] | |
Investment Date | Feb. 11, 2020 |
Outstanding Principal Balance | $ 7,272 |
Interest Type | Fixed |
Interest Rate | 2.80% |
Maturity Date | Feb. 1, 2029 |
Senior Loan | Single Family Rental | Debt Instrument Twenty Four | |
Debt Instrument [Line Items] | |
Investment Date | Feb. 11, 2020 |
Outstanding Principal Balance | $ 6,129 |
Interest Type | Fixed |
Interest Rate | 2.99% |
Maturity Date | Mar. 1, 2029 |
Senior Loan | Single Family Rental | Debt Instrument Twenty Five | |
Debt Instrument [Line Items] | |
Investment Date | Feb. 11, 2020 |
Outstanding Principal Balance | $ 9,284 |
Interest Type | Fixed |
Interest Rate | 2.45% |
Maturity Date | Mar. 1, 2026 |
Senior Loan | Single Family Rental | Debt Instrument Twenty Six | |
Debt Instrument [Line Items] | |
Investment Date | Feb. 11, 2020 |
Outstanding Principal Balance | $ 55,988 |
Interest Type | Fixed |
Interest Rate | 2.70% |
Maturity Date | Mar. 1, 2029 |
Mezzanine Loans | Senior Loan | Multifamily | |
Debt Instrument [Line Items] | |
Outstanding Principal Balance | $ 59,914 |
Interest Rate | 0.30% |
Mezzanine Loans | Senior Loan | Multifamily | Debt Instrument One | Wilmington, DE | |
Debt Instrument [Line Items] | |
Investment Date | Oct. 20, 2020 |
Outstanding Principal Balance | $ 3,348 |
Interest Type | Fixed |
Interest Rate | 0.30% |
Maturity Date | May 1, 2029 |
Mezzanine Loans | Senior Loan | Multifamily | Debt Instrument Two | White Marsh, MD | |
Debt Instrument [Line Items] | |
Investment Date | Oct. 20, 2020 |
Outstanding Principal Balance | $ 6,353 |
Interest Type | Fixed |
Interest Rate | 0.30% |
Maturity Date | Jul. 1, 2031 |
Mezzanine Loans | Senior Loan | Multifamily | Debt Instrument Three | Philadelphia, PA | |
Debt Instrument [Line Items] | |
Investment Date | Oct. 20, 2020 |
Outstanding Principal Balance | $ 8,723 |
Interest Type | Fixed |
Interest Rate | 0.30% |
Maturity Date | Jun. 1, 2029 |
Mezzanine Loans | Senior Loan | Multifamily | Debt Instrument Four | Daytona Beach, FL | |
Debt Instrument [Line Items] | |
Investment Date | Oct. 20, 2020 |
Outstanding Principal Balance | $ 2,264 |
Interest Type | Fixed |
Interest Rate | 0.30% |
Maturity Date | Oct. 1, 2028 |
Mezzanine Loans | Senior Loan | Multifamily | Debt Instrument Five | Laurel, MD | |
Debt Instrument [Line Items] | |
Investment Date | Oct. 20, 2020 |
Outstanding Principal Balance | $ 7,344 |
Interest Type | Fixed |
Interest Rate | 0.30% |
Maturity Date | Apr. 1, 2031 |
Mezzanine Loans | Senior Loan | Multifamily | Debt Instrument Six | Temple Hills, MD | |
Debt Instrument [Line Items] | |
Investment Date | Oct. 20, 2020 |
Outstanding Principal Balance | $ 1,836 |
Interest Type | Fixed |
Interest Rate | 0.30% |
Maturity Date | Aug. 1, 2031 |
Mezzanine Loans | Senior Loan | Multifamily | Debt Instrument Seven | Temple Hills, MD | |
Debt Instrument [Line Items] | |
Investment Date | Oct. 20, 2020 |
Outstanding Principal Balance | $ 918 |
Interest Type | Fixed |
Interest Rate | 0.30% |
Maturity Date | Aug. 1, 2031 |
Mezzanine Loans | Senior Loan | Multifamily | Debt Instrument Eight | Lakewood, NJ | |
Debt Instrument [Line Items] | |
Investment Date | Oct. 20, 2020 |
Outstanding Principal Balance | $ 3,390 |
Interest Type | Fixed |
Interest Rate | 0.30% |
Maturity Date | May 1, 2029 |
Mezzanine Loans | Senior Loan | Multifamily | Debt Instrument Nine | Rosedale, MD | |
Debt Instrument [Line Items] | |
Investment Date | Oct. 20, 2020 |
Outstanding Principal Balance | $ 2,215 |
Interest Type | Fixed |
Interest Rate | 0.30% |
Maturity Date | Jul. 1, 2031 |
Mezzanine Loans | Senior Loan | Multifamily | Debt Instrument Ten | North Aurora, IL | |
Debt Instrument [Line Items] | |
Investment Date | Oct. 20, 2020 |
Outstanding Principal Balance | $ 4,179 |
Interest Type | Fixed |
Interest Rate | 0.30% |
Maturity Date | Jan. 1, 2029 |
Mezzanine Loans | Senior Loan | Multifamily | Debt Instrument Eleven | Cockeysville, MD | |
Debt Instrument [Line Items] | |
Investment Date | Oct. 20, 2020 |
Outstanding Principal Balance | $ 5,881 |
Interest Type | Fixed |
Interest Rate | 0.30% |
Maturity Date | Jul. 1, 2031 |
Mezzanine Loans | Senior Loan | Multifamily | Debt Instrument Twelve | Laurel, MD | |
Debt Instrument [Line Items] | |
Investment Date | Oct. 20, 2020 |
Outstanding Principal Balance | $ 4,523 |
Interest Type | Fixed |
Interest Rate | 0.30% |
Maturity Date | Jul. 1, 2031 |
Mezzanine Loans | Senior Loan | Multifamily | Debt Instrument Thirteen | Vancouver, WA | |
Debt Instrument [Line Items] | |
Investment Date | Oct. 20, 2020 |
Outstanding Principal Balance | $ 662 |
Interest Type | Fixed |
Interest Rate | 0.30% |
Maturity Date | Nov. 1, 2030 |
Mezzanine Loans | Senior Loan | Multifamily | Debt Instrument Fourteen | Tyler, TX | |
Debt Instrument [Line Items] | |
Investment Date | Oct. 20, 2020 |
Outstanding Principal Balance | $ 1,307 |
Interest Type | Fixed |
Interest Rate | 0.30% |
Maturity Date | Oct. 1, 2028 |
Mezzanine Loans | Senior Loan | Multifamily | Debt Instrument Fifteen | Las Vegas, NV | |
Debt Instrument [Line Items] | |
Investment Date | Oct. 20, 2020 |
Outstanding Principal Balance | $ 728 |
Interest Type | Fixed |
Interest Rate | 0.30% |
Maturity Date | Mar. 1, 2029 |
Mezzanine Loans | Senior Loan | Multifamily | Debt Instrument Sixteen | Atlanta, GA | |
Debt Instrument [Line Items] | |
Investment Date | Oct. 20, 2020 |
Outstanding Principal Balance | $ 2,026 |
Interest Type | Fixed |
Interest Rate | 0.30% |
Maturity Date | Jul. 1, 2029 |
Mezzanine Loans | Senior Loan | Multifamily | Debt Instrument Seventeen | Des Moines, IA | |
Debt Instrument [Line Items] | |
Investment Date | Oct. 20, 2020 |
Outstanding Principal Balance | $ 1,763 |
Interest Type | Fixed |
Interest Rate | 0.30% |
Maturity Date | Nov. 1, 2028 |
Mezzanine Loans | Senior Loan | Multifamily | Debt Instrument Eighteen | Urbandale, IA | |
Debt Instrument [Line Items] | |
Investment Date | Oct. 20, 2020 |
Outstanding Principal Balance | $ 2,454 |
Interest Type | Fixed |
Interest Rate | 0.30% |
Maturity Date | Nov. 1, 2028 |
Debt - Activity Related to Carr
Debt - Activity Related to Carrying Value of Secured Financing Agreements and Master Repurchase Agreements (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Debt Instrument [Line Items] | |
Principal borrowings | $ 163,473 |
Principal repayments | (2,008) |
Balances as of December 31, 2020 | 780,539 |
Secured Financing Agreements and Master Repurchase Agreements | |
Debt Instrument [Line Items] | |
Assumption of debt | 883,764 |
Principal borrowings | 344,291 |
Principal repayments | (191,233) |
Accretion of loan discounts | 56 |
Balances as of December 31, 2020 | $ 1,036,878 |
Debt - Summary of Aggregate Sch
Debt - Summary of Aggregate Scheduled Maturities of Total Debt (Details) $ in Thousands | Dec. 31, 2020USD ($) | |
Debt Instrument [Line Items] | ||
2020 | $ (161,465) | [1] |
2023 | (18,530) | |
2024 | (5,811) | |
Thereafter | (852,612) | |
Total debt | (1,038,418) | |
Recourse | ||
Debt Instrument [Line Items] | ||
Thereafter | (36,500) | |
Total debt | (36,500) | |
Non-recourse | ||
Debt Instrument [Line Items] | ||
2020 | (161,465) | [1] |
2023 | (18,530) | |
2024 | (5,811) | |
Thereafter | (816,112) | |
Total debt | $ (1,001,918) | |
[1] | The transactions in place in the master repurchase agreement with Mizuho have a one-month to two-month tenor and are expected to roll accordingly. |
CMBS Trusts - Schedule of Recog
CMBS Trusts - Schedule of Recognized Trust's Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Mortgage loans held in variable interest entities, at fair value | $ 5,007,515 | |
CMBS Trusts | ||
ASSETS | ||
Mortgage loans held in variable interest entities, at fair value | 5,007,515 | |
Accrued interest receivable | 1,063 | |
Liabilities: | ||
Bonds payable held in variable interest entities, at fair value | (4,731,429) | |
Accrued interest payable | $ (794) |
CMBS Trusts - Schedule of Chang
CMBS Trusts - Schedule of Change in Net Assets Related to Consolidated CMBS Variable Interest Entities (Details) - CMBS Variable Interest Entities $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Net interest earned | $ 15,902 |
Unrealized gain | 4,030 |
Change in net assets related to consolidated CMBS variable interest entities | $ 19,932 |
CMBS Trusts - Schedule of Geogr
CMBS Trusts - Schedule of Geographies and Property Types of Collateral Underlying the CMBS Trusts as Percentage of Collateral Unpaid Principal Balance (Details) - CMBS Trusts | Dec. 31, 2020 |
Financing Receivable Impaired [Line Items] | |
Percentage of collateral unpaid principal balance | 100.00% |
Multifamily | |
Financing Receivable Impaired [Line Items] | |
Percentage of collateral unpaid principal balance | 98.12% |
Manufactured Housing | |
Financing Receivable Impaired [Line Items] | |
Percentage of collateral unpaid principal balance | 1.88% |
Florida | |
Financing Receivable Impaired [Line Items] | |
Percentage of collateral unpaid principal balance | 16.25% |
Texas | |
Financing Receivable Impaired [Line Items] | |
Percentage of collateral unpaid principal balance | 15.02% |
Arizona | |
Financing Receivable Impaired [Line Items] | |
Percentage of collateral unpaid principal balance | 11.80% |
California | |
Financing Receivable Impaired [Line Items] | |
Percentage of collateral unpaid principal balance | 8.25% |
Georgia | |
Financing Receivable Impaired [Line Items] | |
Percentage of collateral unpaid principal balance | 7.05% |
Washington | |
Financing Receivable Impaired [Line Items] | |
Percentage of collateral unpaid principal balance | 5.76% |
Nevada | |
Financing Receivable Impaired [Line Items] | |
Percentage of collateral unpaid principal balance | 4.12% |
New Jersey | |
Financing Receivable Impaired [Line Items] | |
Percentage of collateral unpaid principal balance | 4.14% |
New York | |
Financing Receivable Impaired [Line Items] | |
Percentage of collateral unpaid principal balance | 3.00% |
Pennsylvania | |
Financing Receivable Impaired [Line Items] | |
Percentage of collateral unpaid principal balance | 3.30% |
Indiana | |
Financing Receivable Impaired [Line Items] | |
Percentage of collateral unpaid principal balance | 2.42% |
Colorado | |
Financing Receivable Impaired [Line Items] | |
Percentage of collateral unpaid principal balance | 2.26% |
Virginia | |
Financing Receivable Impaired [Line Items] | |
Percentage of collateral unpaid principal balance | 2.09% |
Ohio | |
Financing Receivable Impaired [Line Items] | |
Percentage of collateral unpaid principal balance | 2.00% |
North Carolina | |
Financing Receivable Impaired [Line Items] | |
Percentage of collateral unpaid principal balance | 1.98% |
Tennessee | |
Financing Receivable Impaired [Line Items] | |
Percentage of collateral unpaid principal balance | 1.45% |
Utah | |
Financing Receivable Impaired [Line Items] | |
Percentage of collateral unpaid principal balance | 1.33% |
Maryland | |
Financing Receivable Impaired [Line Items] | |
Percentage of collateral unpaid principal balance | 1.32% |
Missouri | |
Financing Receivable Impaired [Line Items] | |
Percentage of collateral unpaid principal balance | 1.20% |
South Carolina | |
Financing Receivable Impaired [Line Items] | |
Percentage of collateral unpaid principal balance | 1.08% |
Other (15 states each at 1%) | |
Financing Receivable Impaired [Line Items] | |
Percentage of collateral unpaid principal balance | 4.21% |
Preferred Stock - Additional In
Preferred Stock - Additional Information (Details) - Preferred Stock Investment - Jernigan Capital, Inc - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | |
Class Of Stock [Line Items] | ||||
Investment shares | 41,881 | |||
Cash dividend on preferred stock shares investment, percentage | 7.00% | |||
Stock dividend on preferred stock shares investment | $ 2,125 | $ 2,125 | $ 2,125 | |
Preferred Stock, dividend payment terms | The preferred stock paid a fixed quarterly cash dividend of 7% in addition to a quarterly stock dividend of $2.125 million payable on a pro rata basis to the holders of the preferred stock |
Preferred Stock - Schedule of P
Preferred Stock - Schedule of Preferred Stock Investments (Details) - Jernigan Capital, Inc - Preferred Stock Investment $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)shares | ||
Class Of Stock [Line Items] | ||
Investment Date | Feb. 11, 2020 | |
Shares | shares | 41,881 | |
Carrying Value | $ | $ 42,147 | [1] |
Property Type | Self-storage | |
Interest Rate | 7.00% | [2] |
Maturity Date | Dec. 31, 2021 | |
[1] | Carrying value includes an unamortized purchase premium of approximately $0.3 million. | |
[2] | Represents the 7% cash dividend and excludes the effect of the quarterly stock dividend. |
Preferred Stock - Schedule of_2
Preferred Stock - Schedule of Preferred Stock Investments (Parenthetical) (Details) - Jernigan Capital, Inc - Preferred Stock Investment $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Class Of Stock [Line Items] | |
Unamortized purchase premium | $ 0.3 |
Cash dividend excluding effect of quarterly stock dividend | 7.00% |
Preferred Stock - Schedule of A
Preferred Stock - Schedule of Activity Related to Preferred Stock Investments (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Class Of Stock [Line Items] | |
Dividend income | $ 6,309 |
Preferred Stock Investment | |
Class Of Stock [Line Items] | |
Dividend income | 6,466 |
Amortization of premium on preferred stock investment | (157) |
Total | $ 6,309 |
Common Stock - Additional Infor
Common Stock - Additional Information (Details) - $ / shares | Nov. 06, 2020 | Dec. 31, 2020 | Mar. 09, 2020 | Dec. 31, 2019 |
Schedule Of Investments [Line Items] | ||||
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | |
Jernigan Capital, Inc | ||||
Schedule Of Investments [Line Items] | ||||
Common stock share price per share | $ 17.30 | |||
NexPoint Storage Partners, Inc | ||||
Schedule Of Investments [Line Items] | ||||
Common stock, par value | $ 0.01 | |||
Number of common stock shares issued upon exchange of each preferred stock. | 1 | |||
Conversion of stock, type of stock converted | preferred stock | |||
Equity ownership percentage | 25.80% | |||
Common stock accrued interest and dividend rate percentage | 5.00% | |||
Conversion of stock conversion price per share of common stock | $ 1,063.47 |
Common Stock - Schedule of Comm
Common Stock - Schedule of Common Stock Investments (Details) - NexPoint Storage Partners, Inc - Common Stock $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)shares | |
Schedule Of Investments [Line Items] | |
Investment Date | Nov. 6, 2020 |
Investment Shares | shares | 41,963 |
Fair Value | $ | $ 44,626 |
Property Type | Self-storage |
Common Stock - Schedule of Acti
Common Stock - Schedule of Activity Related to Conversion of Preferred Stock to Common Stock (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Schedule Of Investments [Line Items] | |
Amortization of premium | $ (8,280) |
NexPoint Storage Partners, Inc | Common Stock | |
Schedule Of Investments [Line Items] | |
Contribution of preferred stock | 40,400 |
Amortization of premium | (157) |
Realized loss on conversion | (243) |
Non-cash stock dividends received | 1,881 |
Make-whole premium | 2,094 |
Accrued interest and dividends | 564 |
Purchases of common stock | 87 |
NSP common stock carrying value as of December 31, 2020 | $ 44,626 |
CMBS Structured Pass Through _3
CMBS Structured Pass Through Certificates - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2020Loan | |
CMBS I/O Strips | |
Mortgage Loans On Real Estate [Line Items] | |
Number of collateralized mortgage obligations at fair value | 6 |
CMBS Structured Pass Through _4
CMBS Structured Pass Through Certificates - Summary of CMBS I/O Strips (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Mortgage Loans On Real Estate [Line Items] | ||
Carrying Value | $ 918,114 | |
CMBS I/O Strips with Maturity Date 1/25/2037 | Multifamily | ||
Mortgage Loans On Real Estate [Line Items] | ||
Investment Date | Apr. 15, 2020 | |
Carrying Value | $ 966 | |
Interest Rate | 3.40% | |
Current Yield | 12.32% | |
Maturity Date | Jan. 25, 2037 | |
CMBS I/O Strips with Maturity Date 12/25/2037 | Multifamily | ||
Mortgage Loans On Real Estate [Line Items] | ||
Investment Date | Apr. 15, 2020 | |
Carrying Value | $ 885 | |
Interest Rate | 2.93% | |
Current Yield | 12.88% | |
Maturity Date | Dec. 25, 2037 | |
CMBS I/O Strips with Maturity Date 9/25/2046 | Multifamily | ||
Mortgage Loans On Real Estate [Line Items] | ||
Investment Date | May 18, 2020 | |
Carrying Value | $ 2,520 | |
Interest Rate | 2.02% | |
Current Yield | 14.43% | |
Maturity Date | Sep. 25, 2046 | |
13.45% CMBS I/O Strips with Maturity Date 6/25/2030 | Multifamily | ||
Mortgage Loans On Real Estate [Line Items] | ||
Investment Date | Aug. 6, 2020 | |
Carrying Value | $ 8,542 | |
Interest Rate | 0.10% | |
Current Yield | 13.45% | |
Maturity Date | Jun. 25, 2030 | |
14.46% CMBS I/O Strips with Maturity Date 6/25/2030 | Multifamily | ||
Mortgage Loans On Real Estate [Line Items] | ||
Investment Date | Aug. 6, 2020 | |
Carrying Value | $ 1,796 | |
Interest Rate | 0.10% | |
Current Yield | 14.46% | |
Maturity Date | Jun. 25, 2030 | |
CMBS I/O Strips with Maturity Date 5/25/2048 | Multifamily | ||
Mortgage Loans On Real Estate [Line Items] | ||
Investment Date | Aug. 6, 2020 | |
Carrying Value | $ 24,275 | |
Interest Rate | 2.98% | |
Current Yield | 13.30% | |
Maturity Date | May 25, 2048 | |
CMBS I/O Strips | ||
Mortgage Loans On Real Estate [Line Items] | ||
Carrying Value | $ 38,984 |
CMBS Structured Pass Through _5
CMBS Structured Pass Through Certificates - Schedule of Activity Related to CMBS I/O Strips (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Mortgage Loans On Real Estate [Line Items] | |
Interest income | $ 38,978 |
Change in unrealized gain on CMBS structured pass through certificates | 19,932 |
CMBS I/O Strips | |
Mortgage Loans On Real Estate [Line Items] | |
Interest income | 1,124 |
Change in unrealized gain on CMBS structured pass through certificates | (49) |
Total | $ 1,075 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Schedule of Carrying Values and Fair Values of Financial Assets and Liabilities Recorded at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Feb. 11, 2020 | Dec. 31, 2019 |
Liabilities | |||
Secured financing agreements, net | $ 840,453 | ||
Carrying Value | |||
Assets | |||
Cash and cash equivalents | $ 302 | ||
Loans, held-for-investment, net | 22,127 | ||
Mortgage loans, held-for-investment, net | 863,564 | ||
Accrued interest and dividends | 3,616 | ||
Mortgage loans held in variable interest entities, at fair value | 1,790,228 | ||
Assets | 2,719,837 | ||
Liabilities | |||
Bonds payable held in variable interest entities, at fair value | 1,655,960 | ||
Liabilities | $ 2,539,724 | ||
Fair Value Recurring Basis | |||
Assets | |||
Cash and cash equivalents | 30,241 | ||
Restricted cash | 3,230 | ||
Loans, held-for-investment, net | 128,154 | ||
Common stock | 44,626 | ||
Mortgage loans, held-for-investment, net | 906,561 | ||
Accrued interest and dividends | 5,078 | ||
Mortgage loans held in variable interest entities, at fair value | 5,007,515 | ||
CMBS structured pass through certificates, at fair value | 38,984 | ||
Other assets | 745 | ||
Assets | 6,165,134 | ||
Liabilities | |||
Secured financing agreements, net | 859,331 | ||
Master repurchase agreements | 161,465 | ||
Unsecured Notes | 34,960 | ||
Accounts payable and other accrued liabilities | 1,779 | ||
Accrued interest payable | 2,311 | ||
Bonds payable held in variable interest entities, at fair value | 4,731,429 | ||
Liabilities | 5,791,275 | ||
Fair Value Recurring Basis | Carrying Value | |||
Assets | |||
Cash and cash equivalents | 30,241 | ||
Restricted cash | 3,230 | ||
Loans, held-for-investment, net | 127,777 | ||
Common stock | 44,626 | ||
Mortgage loans, held-for-investment, net | 918,114 | ||
Accrued interest and dividends | 5,078 | ||
Mortgage loans held in variable interest entities, at fair value | 5,007,515 | ||
CMBS structured pass through certificates, at fair value | 38,984 | ||
Other assets | 745 | ||
Assets | 6,176,310 | ||
Liabilities | |||
Secured financing agreements, net | 840,453 | ||
Master repurchase agreements | 161,465 | ||
Unsecured Notes | 34,960 | ||
Accounts payable and other accrued liabilities | 1,779 | ||
Accrued interest payable | 2,311 | ||
Bonds payable held in variable interest entities, at fair value | 4,731,429 | ||
Liabilities | 5,772,397 | ||
Fair Value Recurring Basis | Level 1 | |||
Assets | |||
Cash and cash equivalents | 30,241 | ||
Restricted cash | 3,230 | ||
Accrued interest and dividends | 5,078 | ||
Other assets | 745 | ||
Assets | 39,294 | ||
Liabilities | |||
Accounts payable and other accrued liabilities | 1,779 | ||
Accrued interest payable | 2,311 | ||
Liabilities | 4,090 | ||
Fair Value Recurring Basis | Level 2 | |||
Assets | |||
Mortgage loans held in variable interest entities, at fair value | 5,007,515 | ||
CMBS structured pass through certificates, at fair value | 38,984 | ||
Assets | 5,046,499 | ||
Liabilities | |||
Bonds payable held in variable interest entities, at fair value | 4,731,429 | ||
Liabilities | 4,731,429 | ||
Fair Value Recurring Basis | Level 3 | |||
Assets | |||
Loans, held-for-investment, net | 128,154 | ||
Common stock | 44,626 | ||
Mortgage loans, held-for-investment, net | 906,561 | ||
Assets | 1,079,341 | ||
Liabilities | |||
Secured financing agreements, net | 859,331 | ||
Master repurchase agreements | 161,465 | ||
Unsecured Notes | 34,960 | ||
Liabilities | $ 1,055,756 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) | Dec. 22, 2020 | Nov. 02, 2020 | Oct. 26, 2020 | Aug. 04, 2020 | Jul. 24, 2020 | Jul. 20, 2020 | Jun. 24, 2020 | May 08, 2020 | Mar. 09, 2020 | Feb. 11, 2020 | Jan. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Class Of Stock [Line Items] | |||||||||||||
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||
Common stock, shares, issued | 5,350,000 | 10 | |||||||||||
Common stock, shares, outstanding | 5,022,578 | 10 | |||||||||||
Share repurchase program, authorized amount | $ 10,000,000 | ||||||||||||
Stock repurchase program, expiration date | Mar. 9, 2022 | ||||||||||||
Stock repurchase program period in force | 2 years | ||||||||||||
Share repurchase program, treasury stock shares | 327,422 | ||||||||||||
Share repurchase program, treasury stock, value | $ 4,788,000 | ||||||||||||
Share repurchase program, treasury stock, per share | $ 14.61 | ||||||||||||
Treasury stock, common, shares | 327,422 | ||||||||||||
Restricted Stock Units | |||||||||||||
Class Of Stock [Line Items] | |||||||||||||
Restricted stock units granted | 290,851 | ||||||||||||
Common Stock | |||||||||||||
Class Of Stock [Line Items] | |||||||||||||
Number of shares issued/sold | 5,350,000 | ||||||||||||
Gross proceeds from IPO | $ 91,488,000 | ||||||||||||
Share repurchase program, treasury stock shares | 327,422 | ||||||||||||
Share repurchase program, treasury stock, value | $ 4,000 | ||||||||||||
Dividends payable, amount per share | $ 0.40 | ||||||||||||
Dividends payable date declared | Oct. 26, 2020 | ||||||||||||
Dividend payable date to be paid | Dec. 31, 2020 | ||||||||||||
Preferred Stock | |||||||||||||
Class Of Stock [Line Items] | |||||||||||||
Gross proceeds from IPO | $ 46,081,000 | ||||||||||||
Dividends payable, amount per share | $ 0.53125 | ||||||||||||
Dividends payable date declared | Dec. 22, 2020 | ||||||||||||
Dividend payable date to be paid | Jan. 25, 2020 | ||||||||||||
2020 LTIP | |||||||||||||
Class Of Stock [Line Items] | |||||||||||||
Common stock, par value | $ 0.01 | ||||||||||||
2020 LTIP | Restricted Stock Units | |||||||||||||
Class Of Stock [Line Items] | |||||||||||||
Vesting period | 4 years | ||||||||||||
2020 LTIP | Restricted Stock Units | General Partner | |||||||||||||
Class Of Stock [Line Items] | |||||||||||||
Restricted stock units granted | 1,838 | ||||||||||||
2020 LTIP | Restricted Stock Units | Directors | |||||||||||||
Class Of Stock [Line Items] | |||||||||||||
Restricted stock units granted | 14,739 | ||||||||||||
2020 LTIP | Restricted Stock Units | Officers and Other Employees | |||||||||||||
Class Of Stock [Line Items] | |||||||||||||
Restricted stock units granted | 274,274 | ||||||||||||
2020 LTIP | Restricted Stock Units | Minimum | |||||||||||||
Class Of Stock [Line Items] | |||||||||||||
Vesting period | 3 years | ||||||||||||
2020 LTIP | Restricted Stock Units | Maximum [Member] | |||||||||||||
Class Of Stock [Line Items] | |||||||||||||
Vesting period | 5 years | ||||||||||||
2020 LTIP | Common Stock | |||||||||||||
Class Of Stock [Line Items] | |||||||||||||
Number of shares issued under the plan | 1,319,734 | ||||||||||||
Series A Cumulative Redeemable Preferred Stock | |||||||||||||
Class Of Stock [Line Items] | |||||||||||||
Cash dividend on preferred stock shares investment, percentage | 8.50% | ||||||||||||
Preferred stock, liquidation preference per share | $ 25 | ||||||||||||
Series A Preferred Stock | |||||||||||||
Class Of Stock [Line Items] | |||||||||||||
Share repurchase program, treasury stock shares | 0 | ||||||||||||
IPO | |||||||||||||
Class Of Stock [Line Items] | |||||||||||||
Number of shares issued/sold | 5,000,000 | ||||||||||||
Common stock, par value | $ 0.01 | ||||||||||||
Common stock price, per share | $ 19 | ||||||||||||
Additional number of common stock shares sold | 350,000 | ||||||||||||
Additional common stock sold price, per share | $ 19 | ||||||||||||
Gross proceeds from IPO | $ 101,700,000 | ||||||||||||
Underwriting discount and commission expenses | 6,900,000 | ||||||||||||
Offering expenses | $ 3,300,000 | ||||||||||||
IPO | Series A Cumulative Redeemable Preferred Stock | |||||||||||||
Class Of Stock [Line Items] | |||||||||||||
Number of shares issued/sold | 2,000,000 | ||||||||||||
Gross proceeds from IPO | $ 48,000,000 | ||||||||||||
Underwriting discount and commission expenses | 1,200,000 | ||||||||||||
Offering expenses | $ 800,000 | ||||||||||||
Cash dividend on preferred stock shares investment, percentage | 8.50% | ||||||||||||
Preferred Stock, price per share | $ 24 | ||||||||||||
Preferred stock, liquidation preference per share | $ 25 | ||||||||||||
Number of shares purchased | 455,000 | ||||||||||||
Stock purchase price per share | $ 24 | ||||||||||||
IPO | Series A Cumulative Redeemable Preferred Stock | Underwriter | |||||||||||||
Class Of Stock [Line Items] | |||||||||||||
Number of shares issued/sold | 100,000 | ||||||||||||
Stock selling price per share | $ 23.50 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Number of Restricted Stock Units Granted, Vested, Forfeited and Outstanding (Details) - Restricted Stock Units | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Units, Granted | shares | 290,851 |
Number of Units, Outstanding December 31, 2020 | shares | 290,851 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | $ 12.12 |
Weighted Average Grant Date Fair Value, Outstanding December 31, 2020 | $ / shares | $ 12.12 |
Earnings (Loss) Per Share - Sch
Earnings (Loss) Per Share - Schedule of Computation of Basic and Diluted Earnings (Loss) Per Share (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)$ / sharesshares | |
Earnings Per Share Reconciliation [Abstract] | |
Net income attributable to common stockholders | $ | $ 11,099 |
Earnings for basic computations | |
Net income attributable to redeemable noncontrolling interests | $ | 21,323 |
Net income for diluted computations | $ | $ 32,422 |
Weighted-average common shares outstanding | |
Average number of common shares outstanding - basic | 5,206 |
Average number of unvested restricted stock units | 172 |
Average number of OP Units | 13,270 |
Average number of common shares outstanding - diluted | 18,648 |
Earnings (loss) per weighted average common share: | |
Basic | $ / shares | $ 2.13 |
Diluted | $ / shares | $ 1.74 |
Noncontrolling Interests - Addi
Noncontrolling Interests - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 04, 2020 | Jul. 30, 2020 | Jul. 20, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Sep. 30, 2020 |
Series A Cumulative Redeemable Preferred Stock | ||||||
Minority Interest [Line Items] | ||||||
Cash dividend on preferred stock shares investment, percentage | 8.50% | |||||
Preferred stock, liquidation preference per share | $ 25 | |||||
Subscription Agreements | OP IV | ||||||
Minority Interest [Line Items] | ||||||
Percentage of redemption right exercised | 100.00% | |||||
Noncontrolling interest, ownership percentage | 50.28% | |||||
OP IV | Subscription Agreements | ||||||
Minority Interest [Line Items] | ||||||
Book value of common stock per share | $ 18.33 | |||||
Manager Affiliates | Operating Partnership | Subscription Agreements | ||||||
Minority Interest [Line Items] | ||||||
Weighted average price of partnership units | $ 16.98 | |||||
Operating partnership shares outstanding | 13,787,123 | |||||
Cash consideration paid | $ 234.1 | |||||
Manager Affiliates | OP IV | Subscription Agreements | ||||||
Minority Interest [Line Items] | ||||||
Operating partnership shares issued | 267,320 | 359,000 | ||||
Total consideration | $ 4.9 | $ 6.6 |
Noncontrolling Interests - Sche
Noncontrolling Interests - Schedule of Redeemable Noncontrolling Interests (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Noncontrolling Interest [Abstract] | |
Redeemable noncontrolling interests in the OP, December 31, 2019 | |
Contributions from redeemable noncontrolling interests in the OP | 273,410 |
Net income attributable to redeemable noncontrolling interests in the OP | 21,323 |
Distributions to redeemable noncontrolling interests in the OP | (19,063) |
Redeemable noncontrolling interests in the OP, December 31, 2020 | $ 275,670 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | Nov. 02, 2020 | Jun. 24, 2020 | May 29, 2020 | May 08, 2020 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | |||||
Offering expenses | $ 100,000 | ||||
Description of partnership units | Pursuant to the OP’s limited partnership agreement and the Buffalo Pointe Contribution Agreement, the BP Contributors have the right to cause our OP to redeem their OP Units for cash or, at our election, shares of our common stock on a one-for-one basis, subject to adjustment, as provided and subject to the limitations in our OP’s limited partnership agreement, provided the OP Units have been outstanding for at least one year and our stockholders have approved the issuance of shares of common stock to the BP Contributors. | ||||
Management fees | $ 1,552,000 | ||||
Restricted Stock Units | |||||
Related Party Transaction [Line Items] | |||||
Restricted stock units granted | 290,851 | ||||
2020 LTIP | Restricted Stock Units | Directors | |||||
Related Party Transaction [Line Items] | |||||
Restricted stock units granted | 14,739 | ||||
2020 LTIP | Restricted Stock Units | Officers and Other Employees | |||||
Related Party Transaction [Line Items] | |||||
Restricted stock units granted | 274,274 | ||||
NexPoint Real Estate Advisors VII, L.P. | |||||
Related Party Transaction [Line Items] | |||||
Percentage of annual advisory, paid monthly | 1.50% | ||||
Increase (decrease) in operating expense in excess of expense capital | $ 0 | ||||
Management fees | $ 1,600,000 | ||||
NexPoint Real Estate Advisors VII, L.P. | Maximum [Member] | |||||
Related Party Transaction [Line Items] | |||||
Percentage of direct payment of operating expense | 2.50% | ||||
Buffalo Pointe | Contribution Agreement | |||||
Related Party Transaction [Line Items] | |||||
Percentage of preferred equity investment current interest rate | 6.50% | ||||
Percentage of preferred equity investment deferred interest rate | 4.50% | ||||
Percentage of loan to value | 82.90% | ||||
Preferred equity investment maturity date | May 1, 2030 | ||||
Buffalo Pointe | Contribution Agreement | Texas | |||||
Related Party Transaction [Line Items] | |||||
Percentage of occupancy of multifamily property | 90.30% | ||||
Buffalo Pointe | Operating Partnership | Contribution Agreement | |||||
Related Party Transaction [Line Items] | |||||
Consideration paid | $ 10,000,000 | ||||
Operating partnership shares issued | 564,334.09 | ||||
Book value of common stock per share | $ 17.72 | ||||
General Partner | 2020 LTIP | Restricted Stock Units | |||||
Related Party Transaction [Line Items] | |||||
Restricted stock units granted | 1,838 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) $ / shares in Units, $ in Thousands | Feb. 15, 2021$ / shares | Jan. 21, 2021USD ($)LoanExtension | Oct. 26, 2020$ / shares | Dec. 31, 2020USD ($)Loan |
Subsequent Event [Line Items] | ||||
Number of mezzanine loans acquired | Loan | 48 | |||
Aggregate principal amount outstanding | $ 978,641 | |||
Common Stock | ||||
Subsequent Event [Line Items] | ||||
Dividends payable, amount per share | $ / shares | $ 0.40 | |||
Dividends payable date declared | Oct. 26, 2020 | |||
Dividend payable date to be paid | Dec. 31, 2020 | |||
Subsequent Event | Common Stock | ||||
Subsequent Event [Line Items] | ||||
Dividends payable, amount per share | $ / shares | $ 0.475 | |||
Dividends payable date declared | Feb. 15, 2021 | |||
Dividend payable date to be paid | Mar. 31, 2021 | |||
Dividends payable, date of record | Mar. 15, 2021 | |||
Mezzanine Loan Investment | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Number of mezzanine loans acquired | Loan | 2 | |||
Aggregate principal amount outstanding | $ 26,400 | |||
Frequency of payment description | paid in cash on a monthly basis | |||
Minimum rate | 8.00% | |||
Mezzanine Loan Investment | Subsequent Event | A-Note | ||||
Subsequent Event [Line Items] | ||||
Aggregate principal amount outstanding | $ 24,800 | |||
Maturity date | Jan. 21, 2024 | |||
Loans held for investment number of extension option | Extension | 2 | |||
Loans held for investment extension term | 1 year | |||
Mezzanine Loan Investment | Subsequent Event | A-Note | Minimum | ||||
Subsequent Event [Line Items] | ||||
Loans held for investment, interest rate with variable spread | 14.50% | |||
Mezzanine Loan Investment | Subsequent Event | B-Note | ||||
Subsequent Event [Line Items] | ||||
Aggregate principal amount outstanding | $ 1,500 | |||
Maturity date | Feb. 21, 2022 | |||
Interest rate on loan | 10.00% | |||
Mezzanine Loan Investment | Subsequent Event | B-Note | Minimum | ||||
Subsequent Event [Line Items] | ||||
Loans held for investment, interest rate with variable spread | 12.50% |