Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 22, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 000-56564 | ||
Entity Registrant Name | Invesco Commercial Real Estate Finance Trust, Inc. | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 92-1080856 | ||
Entity Address, Address Line One | 2001 Ross Avenue | ||
Entity Address, Address Line Two | Suite 3400 | ||
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 | 715-7400 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | true | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0 | ||
Documents Incorporated by Reference | Part III of this Form 10-K incorporates by reference certain information (solely to the extent explicitly indicated) from the registrant’s proxy statement for the 2024 Annual Meeting of Stockholders to be filed pursuant to Regulation 14A. | ||
Entity Central Index Key | 0001976927 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Class S Common Stock | |||
Document Information [Line Items] | |||
Title of 12(g) Security | Class S common stock, $0.01 per share | ||
Entity Common Stock, Shares Outstanding | 1,052,598 | ||
Class S-1 Common Stock | |||
Document Information [Line Items] | |||
Title of 12(g) Security | Class S-1 common stock, $0.01 per share | ||
Entity Common Stock, Shares Outstanding | 2,543,345 | ||
Class D Common Stock | |||
Document Information [Line Items] | |||
Title of 12(g) Security | Class D common stock, $0.01 per share | ||
Entity Common Stock, Shares Outstanding | 1,052,598 | ||
Class I Common Stock | |||
Document Information [Line Items] | |||
Title of 12(g) Security | Class I common stock, $0.01 per share | ||
Entity Common Stock, Shares Outstanding | 2,047,972 | ||
Class E Common Stock | |||
Document Information [Line Items] | |||
Title of 12(g) Security | Class E common stock, $0.01 per share | ||
Entity Common Stock, Shares Outstanding | 1,126,422 | ||
Class F Common Stock | |||
Document Information [Line Items] | |||
Title of 12(g) Security | Class F common stock, $0.01 per share | ||
Entity Common Stock, Shares Outstanding | 0 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 238 |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Atlanta, Georgia |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Commercial real estate loan investments, at fair value (including pledged loans of $591,003 as of December 31, 2023) | $ 613,503,000 | $ 0 |
Cash and cash equivalents | 1,975,000 | 30,000 |
Restricted cash | 23,566,000 | 0 |
Interest receivable | 2,448,000 | 0 |
Other assets | 151,000 | 0 |
Total assets | 641,643,000 | 30,000 |
LIABILITIES | ||
Repurchase agreements | 457,861,000 | 0 |
Revolving credit facility, at fair value | 14,000,000 | 30,000 |
Interest payable | 1,687,000 | 0 |
Dividends and distributions payable (including $2,363 due to related party) | 3,138,000 | 0 |
Accounts payable, accrued expenses and other liabilities | 23,978,000 | 0 |
Other liabilities | 10,167,000 | 0 |
Total liabilities | 510,831,000 | 30,000 |
Commitments and contingencies (See Note 12) | ||
Redeemable common stock - related party (See Note 7) | 105,340,000 | 0 |
STOCKHOLDERS’ EQUITY | ||
Additional paid-in capital | 32,549,000 | 0 |
Accumulated deficit | (7,296,000) | 0 |
Total stockholders’ equity | 25,472,000 | 0 |
Total liabilities, redeemable common stock and stockholders’ equity | 641,643,000 | 30,000 |
Class S Common Stock | ||
STOCKHOLDERS’ EQUITY | ||
Common stock | 0 | 0 |
Class S-1 Common Stock | ||
STOCKHOLDERS’ EQUITY | ||
Common stock | 11,000 | 0 |
Class D Common Stock | ||
STOCKHOLDERS’ EQUITY | ||
Common stock | 0 | 0 |
Class I Common Stock | ||
STOCKHOLDERS’ EQUITY | ||
Common stock | 3,000 | 0 |
Class E Common Stock | ||
STOCKHOLDERS’ EQUITY | ||
Common stock | 0 | 0 |
Class F Common Stock | ||
STOCKHOLDERS’ EQUITY | ||
Common stock | 0 | 0 |
Class N Common Stock | ||
STOCKHOLDERS’ EQUITY | ||
Common stock | 0 | $ 0 |
Series A Preferred Stock | ||
STOCKHOLDERS’ EQUITY | ||
12.5% Series A Cumulative Redeemable Preferred Stock, 228 and no shares issued and outstanding, respectively ($228 aggregate liquidation preference as of December 31, 2023) | $ 205,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 2 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Dec. 31, 2023 | |
Net Interest Income | ||
Commercial real estate loan interest income | $ 0 | $ 17,688 |
Other interest income | 0 | 298 |
Interest expense | 0 | (13,471) |
Net interest income | 0 | 4,515 |
Other Income (Expense) | ||
Commitment fee income, net of related party expense of $3,212 and $0, respectively | 0 | 3,212 |
Other income | 0 | 220 |
Total other income (expense), net | 0 | 3,432 |
Expenses | ||
Debt issuance costs related to borrowings, at fair value | 0 | 3,727 |
Organizational costs | 0 | 707 |
General and administrative | 0 | 3,052 |
Total expenses | 0 | 7,486 |
Net income (loss) | 0 | 461 |
Dividends to preferred stockholders | 0 | (10) |
Net income (loss) attributable to common stockholders, diluted | 0 | 451 |
Net income (loss) attributable to common stockholders, basic | $ 0 | $ 451 |
Earnings (loss) per share: | ||
Basic (in dollars per share) | $ 0 | $ 0.29 |
Diluted (in dollars per share) | $ 0 | $ 0.29 |
Weighted average number of shares of common stock | ||
Basic (in shares) | 0 | 1,576,538 |
Diluted (in shares) | 0 | 1,576,588 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 2 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Dec. 31, 2023 | |
Related Party | ||
Commitment and other fee expense | $ 0 | $ 3,212 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders’ Equity and Redeemable Common Stock - USD ($) $ in Thousands | Total | Series A Preferred Stock | Class S Redeemable Common Stock | Series A Preferred Stock Series A Preferred Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) |
Beginning balance at Oct. 26, 2022 | $ 0 | $ 0 | $ 0 | $ 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 0 | |||||
Ending balance at Dec. 31, 2022 | 0 | 0 | 0 | 0 | ||
Beginning balance at Oct. 26, 2022 | 0 | |||||
Ending balance at Dec. 31, 2022 | 0 | $ 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 461 | 461 | ||||
Proceeds from issuance of stock, net of offering costs | 32,442 | $ 205 | 205 | 32,428 | ||
Common stock distribution reinvestment | 63 | 63 | ||||
Common stock dividends | (7,747) | (7,747) | ||||
Preferred stock dividends | (10) | (10) | ||||
Amortization of equity based compensation | 58 | 58 | ||||
Ending balance at Dec. 31, 2023 | 25,472 | $ 205 | $ 32,549 | $ (7,296) | ||
Redeemable Common Stock | ||||||
Proceeds from issuance of redeemable common stock | 105,340 | 26,335 | ||||
Adjustment to carrying value of redeemable common stock | 0 | 0 | ||||
Ending balance at Dec. 31, 2023 | $ 105,340 | $ 26,335 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands | 2 Months Ended | 12 Months Ended |
Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) | |
Cash flows from operating activities: | ||
Net income (loss) | $ 0 | $ 461 |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Debt issuance costs | 0 | 3,727 |
Amortization of equity based compensation | 58 | |
Change in operating assets and liabilities: | ||
Increase in operating assets | 0 | (2,521) |
Increase in operating liabilities | 0 | 2,099 |
Increase in due to affiliate | 0 | 5,215 |
Net cash provided by operating activities | 0 | 9,039 |
Cash flows from investing activities: | ||
Originations and fundings of commercial real estate loans | 0 | (613,503) |
Net cash used in investing activities | 0 | (613,503) |
Cash flows from financing activities: | ||
Proceeds from revolving credit facility | 0 | 239,300 |
Repayment of revolving credit facility | 0 | (225,300) |
Proceeds from repurchase agreements | 0 | 457,861 |
Proceeds from issuance of common stock, net of offering costs | 0 | 34,991 |
Proceeds from issuance of preferred stock, net of offering costs | 0 | 205 |
Proceeds from issuance of redeemable common stock | 0 | 105,340 |
Proceeds from subscriptions paid in advance | 0 | 23,566 |
Proceeds from related party loan | 30 | 0 |
Repayment of related party loan | 0 | (30) |
Cash paid for debt issuance costs | 0 | (1,402) |
Payments of dividends | 0 | (4,556) |
Net cash provided by financing activities | 30 | 629,975 |
Net change in cash, cash equivalents and restricted cash | 30 | 25,511 |
Cash, cash equivalents and restricted cash, beginning of period | 0 | 30 |
Cash, cash equivalents and restricted cash, end of period | 30 | 25,541 |
Supplemental disclosures: | ||
Interest paid | 0 | 11,784 |
Non-cash investing and financing activities: | ||
Dividends and distributions declared not paid | 0 | 3,138 |
Common stock distribution reinvestment | 0 | 63 |
Deferred Offering Costs | 0 | 78 |
Offering costs due to affiliates | 0 | 2,549 |
Debt issuance costs due to affiliate | $ 0 | $ 2,325 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Loans pledged as collateral | $ 591,003 | |
Dividends and distributions declared not paid | $ 3,138 | $ 0 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 50,000,000 | 0 |
Related Party | ||
Dividends and distributions declared not paid | $ 2,363 | |
Series A Preferred Stock | ||
Preferred stock, dividend rate (in percent) | 12.50% | |
Preferred stock, issued (in shares) | 228 | |
Preferred stock, outstanding (in shares) | 228 | |
Preferred stock, liquidation preference | $ 228 | |
Class S Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 500,000,000 | 0 |
Class S-1 Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 500,000,000 | 0 |
Class D Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 500,000,000 | 0 |
Class I Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 500,000,000 | 0 |
Class E Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 500,000,000 | 0 |
Class F Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 500,000,000 | 0 |
Class N Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 0 | 2,000,000 |
Organization and Business Purpo
Organization and Business Purpose | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business Purpose | Organization and Business Purpose Invesco Commercial Real Estate Finance Trust, Inc. (the “Company” or “we”) is a Maryland corporation incorporated in October 2022. Our primary investment strategy is to originate, acquire and manage a diversified portfolio of loans and debt-like preferred equity interests secured by, or unsecured but related to, commercial real estate. To a lesser extent, we may purchase non-distressed public or private debt securities and invest in private operating companies in the business of or related to commercial real estate credit through debt or equity investment. We commenced investing activities in May 2023. We own substantially all of our assets through Invesco Commercial Real Estate Finance Investments, L.P. (the “Operating Partnership”), a wholly-owned subsidiary and have one operating segment. We are externally managed by Invesco Advisers, Inc. (the “Adviser”), a registered investment adviser and an indirect, wholly-owned subsidiary of Invesco Ltd. (“Invesco”), an independent global investment management firm. We intend to qualify to be taxed as a real estate investment trust (“REIT”) for U.S. federal income tax purposes beginning with the taxable year ended December 31, 2023. To qualify for REIT status, we are generally required to distribute at least 90% of our REIT taxable income to our stockholders annually. We operate our business in a manner that permits our exclusion from the definition of an “Investment Company” under the Investment Company Act of 1940, as amended (the “Investment Company Act”). We are engaging in a continuous, unlimited private placement offering of our common stock to “accredited investors” (as defined by Rule 501 promulgated pursuant to the Securities Act) (the “Continuous Offering”) under exemptions provided by Section 4(a)(2) of the Securities Act and applicable state securities laws. The Class S shares, Class S-1 shares, Class D shares, Class I shares, and Class E shares sold in our Continuous Offering have different upfront selling commissions, ongoing stockholder servicing fees, management fees and performance fees. An affiliate of Invesco, Invesco Realty, Inc., has committed to purchase up to $150 million in Shares and an additional $150 million in Shares if needed to avoid triggering any concentration limits imposed by a third party in connection with its distribution or placement of our Shares (the “Invesco Subscription Agreement”). For further information regarding the Invesco Subscription Agreement, see Note 7 - “Redeemable Common Stock” to the consolidated financial statements. An institutional investor committed to purchase $200 million in shares of our Class F common stock. For further information on the Class F shares, see Note 8 - “Stockholders’ Equity”. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Consolidation Our consolidated financial statements have been prepared in accordance with U.S. GAAP and consolidate the financial statements of the Company and its controlled subsidiaries. All significant intercompany transactions, balances, revenues and expenses are eliminated upon consolidation. All numbers in these notes, except in the tables herein, are stated in full amounts, unless otherwise indicated. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. Examples of estimates may include, but are not limited to, estimates of the fair values of financial instruments and estimated payment periods for certain stockholder servicing fee liabilities. Actual results may differ from those estimates. Fair Value Measurements We have elected the fair value option for our commercial real estate loan investments, our repurchase agreements and our revolving credit facility. The Company believes the fair value option will provide its financial statements users with reduced complexity, greater consistency, understandability and comparability. In the month that we originate or acquire a loan, we value our commercial real estate loan investments at fair value, which approximates par. Thereafter, an independent valuation advisor values our commercial loan investments monthly using a discounted cash flow analysis. The yield used in the discounted cash flow analysis is determined by comparing the features of the loan to the interest rates and terms required by lenders in the new loan origination market for similar loans and the yield required by investors acquiring similar loans in the secondary market as well as a comparison of current market and collateral conditions to those present at origination or acquisition. In the month that we enter into a borrowing arrangement, we value our revolving credit facility and repurchase agreements at fair value, which approximates par. Thereafter, an independent valuation advisor values our revolving credit facility and repurchase agreements monthly. The independent valuation advisor calculates the fair value of the revolving credit facility based on a determination of the price that would be paid by another market participant to assume the lender’s position in the transaction. The fair value of the repurchase agreements is calculated using a discounted cash flow analysis where the remaining debt service cash flow, based on the contractual economics stated in the loan agreement, is valued using a market interest rate which reflects an estimate for how a lender would price an equivalent loan for the remaining term. Additionally, we consider current market rates and conditions by evaluating similar borrowing agreements with comparable loan-to-value ratios and credit profiles. The market rate of interest is adjusted to reflect our own credit risk for recourse borrowings. Cash and Cash Equivalents We consider all highly liquid investments that have original or remaining maturity dates of three months or less when purchased to be cash equivalents. Cash and cash equivalents are carried at cost, which approximates fair value due to the highly liquid and short-term nature of these instruments. We may have cash balances in excess of federally insured amounts. We mitigate our risk of loss by maintaining cash deposits with high credit-quality institutions and by actively monitoring the credit risk of our counterparties. Restricted Cash Restricted cash represents cash deposited with our transfer agent for investor subscriptions received prior to the date the subscriptions are effective. Cash held by our transfer agent is not available for general corporate purposes. Commercial Real Estate Loan Investments Commercial real estate loan investments structured as senior loans are generally secured by the borrower’s interest in underlying real estate, and those structured as mezzanine loans are generally secured by the borrower’s equity interests in entities that own underlying real estate. Our investments in commercial real estate loans are supported by perfected security interests in the underlying collateral. We report our commercial real estate loan investments at fair value as described in the Fair Value Measurements section of this Note 2 to the consolidated financial statements. We have elected the fair value option for the commercial loans that we have originated as of the date of our financial statements. We record changes in fair value within unrealized gain (loss) on investments, net in our consolidated statements of operations. We recognize interest income from commercial real estate loans when earned and deemed collectible, or until a loan becomes past due based on the terms of the loan agreement. Income accrual is generally suspended for loans at the earlier of the date on which payments become 90 days past due or when recovery of income and principal becomes doubtful. Interest received after a loan becomes past due or impaired is used to reduce the outstanding loan principal balance. When a delinquent loan previously placed on nonaccrual status has cured, meaning all delinquent principal and interest have been remitted by the borrower, the loan is placed back on accrual status. Alternately, loans that have been placed on nonaccrual status may be placed back on accrual status if restructured and after the loan is considered re-performing. We recognize origination fees and related costs for commercial loans immediately in earnings when we elect the fair value option for commercial loans. The Adviser’s portion of the commitment fee is not due until commitment fees have been received from the borrower; the Adviser is responsible for sourcing, structuring and negotiating loans, and the Adviser has discretion in determining loan fees. The Company discloses this related party expense paid to the Adviser on the face of our consolidated statements of operations to provide transparency as to all fees paid to the Adviser. For the year ended December 31, 2023, there were four commercial real estate loan borrowers who individually accounted for more than 10% of our consolidated gross income. In the event of a partial or whole sale of a commercial loan that qualifies for sale accounting under U.S. GAAP, we derecognize the corresponding asset, and fees paid as part of the partial or whole sale are recognized on our consolidated statements of operations. Share-Based Compensation Under the terms of our 2023 Equity Incentive Plan (the “Incentive Plan”), our independent directors are eligible to receive stock awards as part of their compensation for serving as directors. In addition, we may compensate the employees of our Adviser and its affiliates under the Incentive Plan. Our share-based compensation arrangements may include share options, restricted and non-restricted share awards, performance-based awards and share appreciation rights. We recognize compensation related to stock awards in our consolidated financial statements based on the fair value of the equity or liability instruments issued on the date of grant. Underwriting Commissions, Related Party Selling Commissions and Offering Costs We record underwriting commissions, related party selling commissions and direct costs incurred in connection with our common and preferred stock offerings as a reduction of additional paid-in capital and preferred stock, respectively, when we issue stock. Stockholder Servicing Fees As described in Note 11 - “Related Party Transactions”, we will pay a registered broker-dealer affiliated with the Adviser (the “Dealer Manager”) stockholder servicing fees over time for Class S, Class S-1 and Class D shares sold in the Continuous Offering. Under the terms of our agreement with the Dealer Manager, we calculate stockholder servicing fees as a percentage of Class S NAV, Class S-1 NAV and Class D NAV on an annualized basis. We accrue the full amount of stockholder servicing fees payable as an offering cost at the time each Class S, Class S-1, and Class D share is sold during the Continuous Offering and record the stockholder servicing fee as a reduction of additional paid-in capital when we issue stock. We adjust the liability for stockholder servicing fees as the fees are paid to the Dealer Manager or when fees are no longer payable under the terms of our agreement with the Dealer Manager. Repurchase Agreements We have financed our investments in commercial real estate loans primarily through the use of repurchase agreements. These financing transactions are secured by our commercial real estate loan investments; therefore, we treat repurchase agreements as collateralized financing transactions and carry repurchase agreements at fair value in our consolidated financial statements. Because we elected the fair value option for repurchase agreements, we record changes in fair value as unrealized gain (loss) on borrowings, net in our consolidated statements of operations. We account for our repurchase agreements as secured borrowings because we maintain effective control over the commercial real estate loans that we have financed. We record investments in commercial real estate loans and the related repurchase agreement financing on a gross basis in our consolidated balance sheets, and the corresponding interest income and interest expense on a gross basis in our consolidated statements of operations. Redeemable Common Stock We classify common stock held by Invesco Realty, Inc., an Invesco affiliate, as redeemable common stock on our consolidated balance sheets. We determined that we should classify common stock held by Invesco Realty, Inc. as redeemable common stock because our Adviser has been deemed to have control of the Company for accounting purposes. We report our redeemable common stock on our consolidated balance sheets at redemption value. Redemption value is determined based on our net asset value (“NAV”) per share as of our balance sheet date. We calculate NAV as U.S. GAAP stockholders’ equity adjusted for the redemption value of our redeemable common stock; certain organizational expenses, offering costs and operating expenses advanced by our Adviser that are not currently payable; accrued stockholder fees not currently payable; and the liquidation preference of our preferred stock. Increases or decreases in the value of redeemable common stock will be charged to additional paid-in capital until the Company has retained earnings. Debt Issuance Costs We finance our investments using a variety of debt instruments. When we incur debt issuance costs prior to a debt facility closing, we expense the costs as incurred if we intend to elect the fair value option to account for the debt facility and the closing is probable as of the balance sheet date. Earnings (Loss) per Share We calculate basic earnings per share by dividing net earnings attributable to common stockholders for the period by the weighted average number of common shares outstanding during the period, including redeemable common stock. Diluted earnings per share takes into account the effect of dilutive instruments, such as unvested restricted stock awards, and uses the average share price for the period in determining the number of incremental shares that are to be added to the weighted-average number of shares outstanding. Income Taxes We intend to qualify to be taxed as a REIT commencing with our taxable year ended December 31, 2023. We will elect REIT status when we file our 2023 tax return in 2024. Accordingly, we will generally not be subject to U.S. federal and applicable state and local corporate income tax to the extent that we make qualifying distributions to our stockholders, and provided that we satisfy certain asset, income, distribution and stock ownership tests on an ongoing basis. If we fail to qualify as a REIT and do not qualify for certain statutory relief provisions, we will be subject to U.S. federal, state and local income taxes and may be precluded from qualifying as a REIT for the four taxable years following the year in which we lost our REIT qualification. Accordingly, our failure to qualify as a REIT could have a material adverse impact on our results of operations and amounts available for distribution to stockholders. We compute our dividends paid deduction for qualifying dividends to our stockholders using our REIT taxable income as opposed to net income reported on our consolidated financial statements. REIT taxable income will generally differ from net income determined in accordance with U.S. GAAP, because the determination of REIT taxable income is based on tax regulations and not financial accounting principles. We may elect to treat one or more of our subsidiaries as a taxable REIT subsidiary (“TRS”). In general, a TRS may hold assets and engage in activities that we cannot hold or engage in directly and generally may engage in any real estate or non-real estate-related business. A TRS is subject to U.S. federal, state and local corporate income taxes. At December 31, 2023, no such election had been made. Recently Issued Accounting Pronouncements In November 2023, the Financial Standards Accounting Board issued an accounting standards update intended to improve reportable segment disclosure requirements on an annual and interim basis. The amendments require, among other items, enhanced disclosures around significant segment expenses regularly provided to the chief operating decision maker (“CODM”), as well as the CODM's title and position. Additionally, the amendments expand the scope of all segment reporting disclosure requirements to include those entities with only a single operating segment, such as us. We are required to implement the amendments in our consolidated financial statements for the year ended December 31, 2024 and for interim periods thereafter. The amendments must be applied on a retrospective basis and early adoption is permitted. We are currently evaluating the impact of these amendments on our disclosures. |
Commercial Real Estate Loan Inv
Commercial Real Estate Loan Investments | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Commercial Real Estate Loan Investments | Commercial Real Estate Loan Investments As of December 31, 2023, we have the following investments in commercial real estate loans. We did not have any investments in commercial real estate loans as of December 31, 2022. Loans include senior mortgages and similar credit quality loans, including related contiguous subordinate loans. $ in thousands Metropolitan Statistical Area Property Type Origination Date Weighted Average Interest Rate (1) Loan Amount (2) Principal Balance Outstanding Fair Value Current Maturity Maximum Maturity (3) Phoenix Industrial 5/17/2023 8.71% $ 136,000 $ 121,269 $ 121,269 6/9/2025 6/9/2028 San Jose (4) Multifamily 5/31/2023 8.52% 41,700 41,700 41,700 6/9/2026 6/9/2028 New York (5) Multifamily 7/26/2023 8.47% 73,600 73,600 73,600 8/9/2026 8/9/2028 Los Angeles Multifamily 8/4/2023 8.47% 85,180 80,383 80,383 8/9/2025 8/9/2028 Miami Industrial 8/25/2023 8.72% 42,676 35,130 35,130 9/9/2025 9/9/2028 Richmond Industrial 9/25/2023 8.71% 38,300 31,560 31,560 10/9/2025 10/9/2028 Atlanta Industrial 11/6/2023 8.71% 92,950 78,784 78,784 11/9/2025 11/9/2028 Dallas Multifamily 12/7/2023 8.17% 70,000 60,077 60,077 12/9/2026 12/9/2028 Seattle Multifamily 12/12/2023 8.32% 68,500 68,500 68,500 12/9/2026 12/9/2028 New York (6) Multifamily 12/21/2023 8.36% 22,500 22,500 22,500 12/9/2026 12/9/2028 8.53% $ 671,406 $ 613,503 $ 613,503 (1) Represents weighted average interest rate of the most recent interest period in effect for each loan as of period end. Loans earn interest at the one-month Term Secured Overnight Financing Rate (“SOFR”) plus a spread. (2) Loan amount consists of outstanding principal balance plus unfunded loan commitments. (3) Maximum maturity assumes all extension options are exercised by the borrower; however, loans may be repaid prior to such date. Extension options are subject to certain conditions as defined in the respective loan agreement. (4) An affiliate of the Adviser previously originated a loan to an unaffiliated borrower in August 2018 secured by the same collateral as this loan. We negotiated the terms of our loan directly with the unaffiliated borrower at market and without the involvement of the affiliate of the Adviser. The unaffiliated borrower used the refinancing proceeds from our loan to repay the loan of the affiliate of the Adviser. (5) The total whole loan is $73.6 million, including (i) a senior mortgage loan of $55.2 million and (ii) a mezzanine note of $18.4 million. (6) The total whole loan is $22.5 million, including (i) a senior mortgage loan of $18.0 million and (ii) a mezzanine note of $4.5 million. The weighted average loan-to-value ratio, a metric utilized in the fair value measurement of our commercial real estate loan investments, for our ten loan investments was approximately 65% based on the independent property appraisals at the time of origination. Three of our senior commercial real estate loans aggregating $231.6 million and approximately 38% of our loan portfolio as of December 31, 2023 are cross collateralized and cross defaulted under a master credit agreement with a single borrower. The properties underlying these loans are newly constructed industrial properties with no previous rental history. The Company has committed to fund an additional $35.6 million under the master credit agreement for leasing costs, interest reserves and capital expenditures. Funding depends on timing of lease-up, renovation and capital improvements as well as satisfaction of certain cash flow tests. The weighted average loan to value ratio for these loans is approximately 68% based on independent appraisals of the properties at the time of origination. Interest income from these loans for the year ended December 31, 2023 totaled $8.2 million, or 47% of our total commercial real estate loan interest income. Commitment fee income, net of related party expense of $1.3 million totaled $1.3 million or 42% of total commitment fee income, net of related party expense. We may choose to add additional commercial real estate loans under the master credit agreement with the borrower. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings The below table summarizes our repurchase agreement and revolving line of credit borrowings as of December 31, 2023. We did not have any repurchase agreement or revolving credit facility borrowings as of December 31, 2022. $ in thousands Weighted Average Interest rate (1) Maturity Date Maximum Facility Size Amount Outstanding Fair Value Available Balance Repurchase Agreements: Morgan Stanley Bank N.A. (2) 7.86% 5/25/2025 $ 250,000 $ 174,209 $ 174,209 $ 75,791 Citibank N.A. (3) 7.63% 6/1/2025 (original); 6/1/2027 (fully extended) 200,000 61,464 61,464 138,536 Bank of Montreal (4) 7.44% 7/18/2025 (original); 7/14/2028 (fully extended) 234,144 222,188 222,188 11,956 Total Repurchase Agreements 7.63% 684,144 457,861 457,861 226,283 Revolving Credit Facility (5) 8.26% 100,000 14,000 14,000 86,000 Total 7.64% $ 784,144 $ 471,861 $ 471,861 $ 312,283 (1) Represents weighted average interest rate as of period end. Borrowings under our repurchase agreements and revolving credit facility carry interest at one-month Term SOFR plus a spread. (2) Borrowing facility has an extension option of one year, subject to lender approval and compliance with certain financial and administrative covenants. (3) Borrowing facility reflects maximum maturity of two remaining extension options of one year each, because these extensions are at our option. The extensions, consistent with our current borrowing terms, are subject to ongoing compliance with certain financial and administrative covenants as well as payment of applicable extension fees. (4) Borrowing facility has three extension options of one year, subject to lender approval and compliance with certain financial and administrative covenants. (5) The final maturity date of the Revolving Credit Facility is aligned with the Company’s ability to call remaining outstanding capital under certain subscription agreements, as further explained below. The following table shows the aggregate amount of maturities of our outstanding borrowings over the next five years and thereafter as of December 31, 2023: Year Repurchase Agreements Revolving Credit Facility Total $ in thousands 2024 $ — $ 14,000 $ 14,000 2025 457,861 — 457,861 2026 — — — 2027 — — — 2028 — — — Thereafter — — — Total $ 457,861 $ 14,000 $ 471,861 The Company commenced investing in commercial real estate loans in May 2023 and did not have any third party borrowings as of December 31, 2022. See Note 5 - “Loan Payable - Related Party” for information on related party borrowings as of December 31, 2022. Repurchase Agreements We have entered into repurchase agreement facilities to provide floating rate financing for our commercial real estate loan investments. The repurchase agreements bear interest at one-month term SOFR plus a spread and initially mature in 2025 with extension options into 2026, 2027, and 2028, respectively, which are generally subject to lender approval. We have pledged our commercial real estate loan investments with a fair value of approximately $591.0 million as collateral for our repurchase agreements. We segregate the commercial real estate loans that we have pledged as collateral in our books and records. Our repurchase agreement counterparties have the right to resell or repledge the collateral posted but have the obligation to return the pledged collateral upon maturity of the repurchase agreement. We may be required to post margin under our repurchase agreements if there is a material adverse change in the credit characteristics of a particular loan with respect to the underlying property, borrower, or particular real estate market. We were not required to post any margin under our repurchase agreements as of December 31, 2023. A margin deficiency may generally result from either a decline in the underlying loan’s market value or a shortfall in operating performance of the property. Our repurchase agreement counterparties generally retain the right to determine the fair value of the underlying collateral in their sole discretion. Subject to applicable thresholds, we would generally be required to post cash as collateral. We may finance multiple commercial loan investments under a repurchase agreement; therefore, a margin excess in one asset could help mitigate a margin deficiency in another asset under the same repurchase agreement. We intend to maintain a level of liquidity that will enable us to meet margin calls. Our repurchase agreements are subject to certain liquidity, tangible net worth and leverage covenants. We were in compliance with these covenants as of December 31, 2023. Revolving Credit Facility In December 2023, we entered into a revolving credit facility with Goldman Sachs Bank that is secured by uncalled capital subscriptions from an affiliate of Invesco and the Company’s sole Class F subscriber under the terms of the Invesco Subscription Agreement and the Class F Subscription Agreement, respectively. as each is more fully described in Note 7 - “Redeemable Common Stock” and Note 8 - “Stockholders’ Equity”. The facility provides for loans up to a maximum of $100 million. Borrowings under the facility bear interest at one-month Term SOFR or the prime rate plus a spread. The revolving credit facility allows for the ability to obtain tranches of term financing in addition to general borrowings under an Uncommitted Tranche (as defined in the credit agreement). At December 31, 2023, the amount outstanding under the facility was drawn from the Uncommitted Tranche. The Uncommitted Tranche is due on demand (15 business days after notice); any Funded Tranche (as defined in the credit agreement) is due no later than (a) three years from issuance or (b) 360 days after notice; and all amounts outstanding under the facility are due 30 days prior to the last date on which capital calls may be issued. As of December 31, 2023, we had an available balance of $86.0 million under the facility. The facility is prepayable without penalty. Our revolving credit facility is subject to certain affirmative and negative covenants including a limitation on indebtedness. We were in compliance with these covenants as of December 31, 2023. Prior to entering into our current revolving credit facility, we had a revolving credit facility with Bank of America that was secured by the Invesco Subscription Agreement. We paid interest on borrowings under the initial revolving credit facility at daily SOFR plus a spread. We paid a fee of 30 basis points per annum on any unused portion of the facility and recorded these fees as interest expense in our consolidated statements of operations. We repaid our initial revolving credit facility in full when it matured in October 2023. Loan Payable - Related Party In December 2022, we entered into a revolving credit agreement with an affiliate of Invesco that provides for maximum borrowings of $30,000. Principal on loans made under the agreement is due nine months after the date each loan is made. We incur interest on loans made under the agreement at the short-term applicable federal rate in effect at the time each borrowing is made. As of December 31, 2022, we borrowed $30,000 under the terms of this agreement and owed $76 for accrued interest on the loan. The carrying amount of the loan approximated fair value as of December 31, 2022 given the short term nature of the facility. The weighted average interest rate on the loan was 4.55% as of December 31, 2022. We incurred $649 of interest expense on the loan in the year ended December 31, 2023 . We repaid the loan, including accrued interest expense, in June 2023. |
Loan Payable - Related Party
Loan Payable - Related Party | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Loan Payable - Related Party | Borrowings The below table summarizes our repurchase agreement and revolving line of credit borrowings as of December 31, 2023. We did not have any repurchase agreement or revolving credit facility borrowings as of December 31, 2022. $ in thousands Weighted Average Interest rate (1) Maturity Date Maximum Facility Size Amount Outstanding Fair Value Available Balance Repurchase Agreements: Morgan Stanley Bank N.A. (2) 7.86% 5/25/2025 $ 250,000 $ 174,209 $ 174,209 $ 75,791 Citibank N.A. (3) 7.63% 6/1/2025 (original); 6/1/2027 (fully extended) 200,000 61,464 61,464 138,536 Bank of Montreal (4) 7.44% 7/18/2025 (original); 7/14/2028 (fully extended) 234,144 222,188 222,188 11,956 Total Repurchase Agreements 7.63% 684,144 457,861 457,861 226,283 Revolving Credit Facility (5) 8.26% 100,000 14,000 14,000 86,000 Total 7.64% $ 784,144 $ 471,861 $ 471,861 $ 312,283 (1) Represents weighted average interest rate as of period end. Borrowings under our repurchase agreements and revolving credit facility carry interest at one-month Term SOFR plus a spread. (2) Borrowing facility has an extension option of one year, subject to lender approval and compliance with certain financial and administrative covenants. (3) Borrowing facility reflects maximum maturity of two remaining extension options of one year each, because these extensions are at our option. The extensions, consistent with our current borrowing terms, are subject to ongoing compliance with certain financial and administrative covenants as well as payment of applicable extension fees. (4) Borrowing facility has three extension options of one year, subject to lender approval and compliance with certain financial and administrative covenants. (5) The final maturity date of the Revolving Credit Facility is aligned with the Company’s ability to call remaining outstanding capital under certain subscription agreements, as further explained below. The following table shows the aggregate amount of maturities of our outstanding borrowings over the next five years and thereafter as of December 31, 2023: Year Repurchase Agreements Revolving Credit Facility Total $ in thousands 2024 $ — $ 14,000 $ 14,000 2025 457,861 — 457,861 2026 — — — 2027 — — — 2028 — — — Thereafter — — — Total $ 457,861 $ 14,000 $ 471,861 The Company commenced investing in commercial real estate loans in May 2023 and did not have any third party borrowings as of December 31, 2022. See Note 5 - “Loan Payable - Related Party” for information on related party borrowings as of December 31, 2022. Repurchase Agreements We have entered into repurchase agreement facilities to provide floating rate financing for our commercial real estate loan investments. The repurchase agreements bear interest at one-month term SOFR plus a spread and initially mature in 2025 with extension options into 2026, 2027, and 2028, respectively, which are generally subject to lender approval. We have pledged our commercial real estate loan investments with a fair value of approximately $591.0 million as collateral for our repurchase agreements. We segregate the commercial real estate loans that we have pledged as collateral in our books and records. Our repurchase agreement counterparties have the right to resell or repledge the collateral posted but have the obligation to return the pledged collateral upon maturity of the repurchase agreement. We may be required to post margin under our repurchase agreements if there is a material adverse change in the credit characteristics of a particular loan with respect to the underlying property, borrower, or particular real estate market. We were not required to post any margin under our repurchase agreements as of December 31, 2023. A margin deficiency may generally result from either a decline in the underlying loan’s market value or a shortfall in operating performance of the property. Our repurchase agreement counterparties generally retain the right to determine the fair value of the underlying collateral in their sole discretion. Subject to applicable thresholds, we would generally be required to post cash as collateral. We may finance multiple commercial loan investments under a repurchase agreement; therefore, a margin excess in one asset could help mitigate a margin deficiency in another asset under the same repurchase agreement. We intend to maintain a level of liquidity that will enable us to meet margin calls. Our repurchase agreements are subject to certain liquidity, tangible net worth and leverage covenants. We were in compliance with these covenants as of December 31, 2023. Revolving Credit Facility In December 2023, we entered into a revolving credit facility with Goldman Sachs Bank that is secured by uncalled capital subscriptions from an affiliate of Invesco and the Company’s sole Class F subscriber under the terms of the Invesco Subscription Agreement and the Class F Subscription Agreement, respectively. as each is more fully described in Note 7 - “Redeemable Common Stock” and Note 8 - “Stockholders’ Equity”. The facility provides for loans up to a maximum of $100 million. Borrowings under the facility bear interest at one-month Term SOFR or the prime rate plus a spread. The revolving credit facility allows for the ability to obtain tranches of term financing in addition to general borrowings under an Uncommitted Tranche (as defined in the credit agreement). At December 31, 2023, the amount outstanding under the facility was drawn from the Uncommitted Tranche. The Uncommitted Tranche is due on demand (15 business days after notice); any Funded Tranche (as defined in the credit agreement) is due no later than (a) three years from issuance or (b) 360 days after notice; and all amounts outstanding under the facility are due 30 days prior to the last date on which capital calls may be issued. As of December 31, 2023, we had an available balance of $86.0 million under the facility. The facility is prepayable without penalty. Our revolving credit facility is subject to certain affirmative and negative covenants including a limitation on indebtedness. We were in compliance with these covenants as of December 31, 2023. Prior to entering into our current revolving credit facility, we had a revolving credit facility with Bank of America that was secured by the Invesco Subscription Agreement. We paid interest on borrowings under the initial revolving credit facility at daily SOFR plus a spread. We paid a fee of 30 basis points per annum on any unused portion of the facility and recorded these fees as interest expense in our consolidated statements of operations. We repaid our initial revolving credit facility in full when it matured in October 2023. Loan Payable - Related Party In December 2022, we entered into a revolving credit agreement with an affiliate of Invesco that provides for maximum borrowings of $30,000. Principal on loans made under the agreement is due nine months after the date each loan is made. We incur interest on loans made under the agreement at the short-term applicable federal rate in effect at the time each borrowing is made. As of December 31, 2022, we borrowed $30,000 under the terms of this agreement and owed $76 for accrued interest on the loan. The carrying amount of the loan approximated fair value as of December 31, 2022 given the short term nature of the facility. The weighted average interest rate on the loan was 4.55% as of December 31, 2022. We incurred $649 of interest expense on the loan in the year ended December 31, 2023 . We repaid the loan, including accrued interest expense, in June 2023. |
Accounts payable, accrued expen
Accounts payable, accrued expenses and other liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accounts payable, accrued expenses and other liabilities | Accounts payable, accrued expenses and other liabilities The following table details the components of accounts payable, accrued expenses and other liabilities as of December 31, 2023. We did not have any accounts payable, accrued expenses and other liabilities as of December 31, 2022. $ in thousands December 31, 2023 Accounts payable and accrued expenses $ 14 Subscriptions paid in advance (1) 23,566 Other liabilities 398 Total $ 23,978 (1) Represents subscriptions received by our transfer agent prior to the date the subscriptions are effective. |
Redeemable Common Stock - Relat
Redeemable Common Stock - Related Party | 12 Months Ended |
Dec. 31, 2023 | |
Temporary Equity Disclosure [Abstract] | |
Redeemable Common Stock - Related Party | Redeemable Common Stock - Related Party Invesco Realty, Inc., an affiliate of Invesco, has committed to purchase up to $300 million in Shares. We may call $150 million in capital under the Invesco Subscription Agreement in one or more closings through March 23, 2028. We may also call up to $150 million in additional capital if needed to avoid triggering any concentration limit imposed by a third party in connection with its distribution or placement of our Shares. Invesco’s affiliate may not submit its Shares for repurchase under the share repurchase plan described in Note 11 - “Related Party Transactions” until the earlier of March 23, 2028 and the date that our aggregate NAV is at least $1.5 billion. We can only accept a repurchase request from Invesco’s affiliate after all requests from unaffiliated stockholders have been fulfilled. We may elect to repurchase all or any portion of the Shares acquired by Invesco’s affiliate at any time at a per Share price equal to the most recently determined NAV per Share for each class (or another transaction price we believe reflects the NAV per Share more appropriately than the prior month’s NAV per Share). Invesco’s affiliate has agreed that it will hold $200,000 in Shares for as long as the Adviser or its affiliate acts in an advisory capacity to us. As of December 31, 2023, we have called $105.3 million of capital under the Invesco Subscription Agreement and may call an additional $44.7 million of the initial $150 million capital committed under the Invesco Subscription Agreement. The following tables summarize the changes in our outstanding shares of redeemable common stock for the year ended December 31, 2023: Class S Redeemable Common Stock Class D Redeemable Common Stock Class I Redeemable Common Stock Class E Redeemable Common Stock Total Redeemable Common Stock $ in thousands Balance as of December 31, 2022 $ — $ — $ — $ — $ — Proceeds from issuance of redeemable common stock 26,335 26,335 26,335 26,335 105,340 Adjustment to carrying value of redeemable common stock — — — — — Balance as of December 31, 2023 $ 26,335 $ 26,335 $ 26,335 $ 26,335 $ 105,340 Stapled Unit Offerings of Preferred and Common Stock We issued 111 stapled units (the “Stapled Units”) in a private placement in June 2023 for net proceeds of approximately $107,000 after issuance costs. Each Stapled Unit consists of one share of 12.5% Series A Cumulative Redeemable Preferred Stock (the “Series A Preferred Stock”), one Class S Share, one Class D Share and one Class I Share. We issued 117 stapled units (the “New Stapled Units”) in a private placement in November 2023 for net proceeds of approximately $108,000 after issuance costs. Each New Stapled Unit consists of one share of Series A Preferred Stock and one Class S-1 Share. The Stapled Unit and New Stapled Unit holders cannot separate the individual shares of stock that constitute the Stapled Unit and New Stapled Units and can only sell or transfer the Stapled Unit and New Stapled Units as a unit. Holders of Stapled Units and New Stapled Units are not eligible to participate in the share repurchase plan discussed below. We allocated the proceeds of the Stapled Unit and New Stapled Unit offerings based on the relative fair value of the preferred and common stock issued in the offering. The Series A Preferred Stock has a liquidation value of $1,000 per share. Holders of our Series A Preferred Stock are entitled to receive dividends at an annual rate of 12.5% of the liquidation preference, or $125.00 per share per annum. Dividends are cumulative and payable annually. We can call the Series A Preferred Stock at any time through December 31, 2024 at a 5% redemption premium above the liquidation value. The Series A Preferred Stock has no redemption premium on or after January 1, 2025, and we can call the Series A Preferred Stock for $1,000 per share at any time on or after January 1, 2025. We can call the common shares issued in these offerings at any time at the current transaction price for the respective class of common stock. Each class of common shares is separately redeemable from the Series A Preferred Stock and each other class of common shares. If we elect to redeem any class of common shares included in the Stapled Unit or New Stapled Unit, we will redeem all common shares of that class included in the Stapled Units or New Stapled Units, as applicable. Common Stock The following table summarizes changes in our outstanding shares of common stock for the year ended December 31, 2023. We did not issue any common stock in 2022. Class S Class S-1 Shares Class D Class I Class E Total Total Outstanding Shares as of December 31, 2022 — — — — — — Issuance of common shares to unaffiliated stockholders 111 1,052,255 111 330,438 12,352 1,395,267 Stock awards (1) — — — — 2,989 2,989 Common stock distribution reinvestment — 1,919 — 581 — 2,500 Common stock shares as of December 31, 2023 111 1,054,174 111 331,019 15,341 1,400,756 Issuance of redeemable common shares (2) 1,052,487 — 1,052,487 1,052,487 1,052,464 4,209,925 Total Outstanding Shares as of December 31, 2023 1,052,598 1,054,174 1,052,598 1,383,506 1,067,805 5,610,681 (1) Represents shares issued to independent directors under the Incentive Plan. See Share-Based Compensation Plan below. (2) Consists of shares issued to an Invesco affiliate that are classified as redeemable common stock. See Note 7 - “Redeemable Common Stock.” In December 2023, we entered into a subscription agreement (the “Class F Subscription Agreement”) with an institutional investor to purchase up to $200 million of Class F shares. The initial purchase price for Class F shares will be the prior month’s NAV of Class E shares. For a discussion of fees paid to the Adviser for Class F shares, see Note 11 - “Related Party Transactions - Management Fee and Performance Fee”. As of December 31, 2023, we have not issued any Class F shares. Distributions For the year ended December 31, 2023, we declared distributions of $7.8 million. We accrued $3.1 million for distributions payable, of which $2.4 million was accrued for distributions payable to related parties, in our consolidated balance sheets as of December 31, 2023 . We did not declare any distributions in 2022. The following table details the aggregate distributions declared per share for each applicable class of stock for the year ended December 31, 2023: Year Ended December 31, 2023 Class S Class S-1 Class D Class I Class E Aggregate distribution declared per share $ 4.7628 $ 0.8810 $ 4.7628 $ 4.7628 $ 4.7628 Stockholder servicing fee per share — (0.0539) — — — Net distribution declared per share $ 4.7628 $ 0.8271 $ 4.7628 $ 4.7628 $ 4.7628 The following table sets forth the dividends declared per share of our preferred and common stock that are taxable in the fiscal tax year ended December 31, 2023 and the related tax characterization. Tax Characterization of Dividends Dividends Declared and Taxable in Current Year Ordinary Dividends Return of Capital Capital Gain Distribution Series A Preferred Stock $ 5.9000 $ 5.9000 $ — $ — Common Stock: Class S $ 4.2018 $ 3.2044 $ 0.9974 $ — Class S-1 $ 0.3200 $ 0.2440 $ 0.0760 $ — Class D $ 4.2018 $ 3.2044 $ 0.9974 $ — Class I $ 4.2018 $ 3.2044 $ 0.9974 $ — Class E $ 4.2018 $ 3.2044 $ 0.9974 $ — Share Repurchase Plan We have adopted a share repurchase plan for our common stock. On a monthly basis, our stockholders may request that we repurchase all or any portion of their shares. We may choose, in our discretion, to repurchase all, some or none of the shares that have been requested to be repurchased at the end of any month, subject to any limitations in the share repurchase plan. The total amount of share repurchases under the plan is limited to 2% of our aggregate NAV per month and 5% of our aggregate NAV per calendar quarter. Shares will be repurchased at a price equal to the transaction price on the applicable repurchase date, subject to any early repurchase deduction. Our transaction price will generally equal our prior month's NAV per share for that share class. Shares repurchased within one year of the date of issuance generally will be repurchased at 95% of the current transaction price (the “Early Repurchase Deduction”). The Early Repurchase Deduction will not apply to shares acquired through the distribution reinvestment plan discussed below. Due to the illiquid nature of investments in commercial real estate loans, we may not have sufficient liquid resources to fund repurchase requests. Our Board may modify or suspend the share repurchase plan. Class F stockholders may not participate in our share repurchase plan until the earlier of (i) the date our NAV reaches $1.5 billion and (ii) March 23, 2028. However, Class F stockholders are entitled to request that we repurchase their shares in the event that there is a key person event or a material strategy change as defined in the terms of the Class F subscription agreement. We did not receive any stockholder redemption requests in the year ended December 31, 2023. Distribution Reinvestment Plan We have adopted a distribution reinvestment plan whereby stockholders will have their cash distributions automatically reinvested in additional shares of common stock unless they elect to receive their distributions in cash. The per share purchase price for shares purchased under the distribution reinvestment plan is equal to the transaction price at the time the distribution is payable. The transaction price will generally be equal to our prior month’s NAV per share for that share class. Stockholders do not pay upfront selling commissions when purchasing shares under the distribution reinvestment plan; however, all outstanding Class S, Class S-1 and Class D shares purchased under the distribution reinvestment plan will be subject to an ongoing stockholder servicing fee. The stockholder servicing fees for Class S shares, Class S-1 shares and Class D shares are calculated based on the NAV for those shares and reduce the NAV and the distributions payable with respect to shares of each such class. Share-Based Compensation Plan In November 2023, we granted 2,989 restricted shares of Class E common stock to our independent directors under the terms of our Incentive Plan. The restricted shares will become unrestricted shares of common stock on the first anniversary of the grant date unless forfeited, subject to certain conditions that accelerate vesting. As of December 31, 2023, we had 1,097,011 shares of common stock available for future issuance under the Incentive Plan. |
Stockholders_ Equity
Stockholders’ Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Stockholders’ Equity | Redeemable Common Stock - Related Party Invesco Realty, Inc., an affiliate of Invesco, has committed to purchase up to $300 million in Shares. We may call $150 million in capital under the Invesco Subscription Agreement in one or more closings through March 23, 2028. We may also call up to $150 million in additional capital if needed to avoid triggering any concentration limit imposed by a third party in connection with its distribution or placement of our Shares. Invesco’s affiliate may not submit its Shares for repurchase under the share repurchase plan described in Note 11 - “Related Party Transactions” until the earlier of March 23, 2028 and the date that our aggregate NAV is at least $1.5 billion. We can only accept a repurchase request from Invesco’s affiliate after all requests from unaffiliated stockholders have been fulfilled. We may elect to repurchase all or any portion of the Shares acquired by Invesco’s affiliate at any time at a per Share price equal to the most recently determined NAV per Share for each class (or another transaction price we believe reflects the NAV per Share more appropriately than the prior month’s NAV per Share). Invesco’s affiliate has agreed that it will hold $200,000 in Shares for as long as the Adviser or its affiliate acts in an advisory capacity to us. As of December 31, 2023, we have called $105.3 million of capital under the Invesco Subscription Agreement and may call an additional $44.7 million of the initial $150 million capital committed under the Invesco Subscription Agreement. The following tables summarize the changes in our outstanding shares of redeemable common stock for the year ended December 31, 2023: Class S Redeemable Common Stock Class D Redeemable Common Stock Class I Redeemable Common Stock Class E Redeemable Common Stock Total Redeemable Common Stock $ in thousands Balance as of December 31, 2022 $ — $ — $ — $ — $ — Proceeds from issuance of redeemable common stock 26,335 26,335 26,335 26,335 105,340 Adjustment to carrying value of redeemable common stock — — — — — Balance as of December 31, 2023 $ 26,335 $ 26,335 $ 26,335 $ 26,335 $ 105,340 Stapled Unit Offerings of Preferred and Common Stock We issued 111 stapled units (the “Stapled Units”) in a private placement in June 2023 for net proceeds of approximately $107,000 after issuance costs. Each Stapled Unit consists of one share of 12.5% Series A Cumulative Redeemable Preferred Stock (the “Series A Preferred Stock”), one Class S Share, one Class D Share and one Class I Share. We issued 117 stapled units (the “New Stapled Units”) in a private placement in November 2023 for net proceeds of approximately $108,000 after issuance costs. Each New Stapled Unit consists of one share of Series A Preferred Stock and one Class S-1 Share. The Stapled Unit and New Stapled Unit holders cannot separate the individual shares of stock that constitute the Stapled Unit and New Stapled Units and can only sell or transfer the Stapled Unit and New Stapled Units as a unit. Holders of Stapled Units and New Stapled Units are not eligible to participate in the share repurchase plan discussed below. We allocated the proceeds of the Stapled Unit and New Stapled Unit offerings based on the relative fair value of the preferred and common stock issued in the offering. The Series A Preferred Stock has a liquidation value of $1,000 per share. Holders of our Series A Preferred Stock are entitled to receive dividends at an annual rate of 12.5% of the liquidation preference, or $125.00 per share per annum. Dividends are cumulative and payable annually. We can call the Series A Preferred Stock at any time through December 31, 2024 at a 5% redemption premium above the liquidation value. The Series A Preferred Stock has no redemption premium on or after January 1, 2025, and we can call the Series A Preferred Stock for $1,000 per share at any time on or after January 1, 2025. We can call the common shares issued in these offerings at any time at the current transaction price for the respective class of common stock. Each class of common shares is separately redeemable from the Series A Preferred Stock and each other class of common shares. If we elect to redeem any class of common shares included in the Stapled Unit or New Stapled Unit, we will redeem all common shares of that class included in the Stapled Units or New Stapled Units, as applicable. Common Stock The following table summarizes changes in our outstanding shares of common stock for the year ended December 31, 2023. We did not issue any common stock in 2022. Class S Class S-1 Shares Class D Class I Class E Total Total Outstanding Shares as of December 31, 2022 — — — — — — Issuance of common shares to unaffiliated stockholders 111 1,052,255 111 330,438 12,352 1,395,267 Stock awards (1) — — — — 2,989 2,989 Common stock distribution reinvestment — 1,919 — 581 — 2,500 Common stock shares as of December 31, 2023 111 1,054,174 111 331,019 15,341 1,400,756 Issuance of redeemable common shares (2) 1,052,487 — 1,052,487 1,052,487 1,052,464 4,209,925 Total Outstanding Shares as of December 31, 2023 1,052,598 1,054,174 1,052,598 1,383,506 1,067,805 5,610,681 (1) Represents shares issued to independent directors under the Incentive Plan. See Share-Based Compensation Plan below. (2) Consists of shares issued to an Invesco affiliate that are classified as redeemable common stock. See Note 7 - “Redeemable Common Stock.” In December 2023, we entered into a subscription agreement (the “Class F Subscription Agreement”) with an institutional investor to purchase up to $200 million of Class F shares. The initial purchase price for Class F shares will be the prior month’s NAV of Class E shares. For a discussion of fees paid to the Adviser for Class F shares, see Note 11 - “Related Party Transactions - Management Fee and Performance Fee”. As of December 31, 2023, we have not issued any Class F shares. Distributions For the year ended December 31, 2023, we declared distributions of $7.8 million. We accrued $3.1 million for distributions payable, of which $2.4 million was accrued for distributions payable to related parties, in our consolidated balance sheets as of December 31, 2023 . We did not declare any distributions in 2022. The following table details the aggregate distributions declared per share for each applicable class of stock for the year ended December 31, 2023: Year Ended December 31, 2023 Class S Class S-1 Class D Class I Class E Aggregate distribution declared per share $ 4.7628 $ 0.8810 $ 4.7628 $ 4.7628 $ 4.7628 Stockholder servicing fee per share — (0.0539) — — — Net distribution declared per share $ 4.7628 $ 0.8271 $ 4.7628 $ 4.7628 $ 4.7628 The following table sets forth the dividends declared per share of our preferred and common stock that are taxable in the fiscal tax year ended December 31, 2023 and the related tax characterization. Tax Characterization of Dividends Dividends Declared and Taxable in Current Year Ordinary Dividends Return of Capital Capital Gain Distribution Series A Preferred Stock $ 5.9000 $ 5.9000 $ — $ — Common Stock: Class S $ 4.2018 $ 3.2044 $ 0.9974 $ — Class S-1 $ 0.3200 $ 0.2440 $ 0.0760 $ — Class D $ 4.2018 $ 3.2044 $ 0.9974 $ — Class I $ 4.2018 $ 3.2044 $ 0.9974 $ — Class E $ 4.2018 $ 3.2044 $ 0.9974 $ — Share Repurchase Plan We have adopted a share repurchase plan for our common stock. On a monthly basis, our stockholders may request that we repurchase all or any portion of their shares. We may choose, in our discretion, to repurchase all, some or none of the shares that have been requested to be repurchased at the end of any month, subject to any limitations in the share repurchase plan. The total amount of share repurchases under the plan is limited to 2% of our aggregate NAV per month and 5% of our aggregate NAV per calendar quarter. Shares will be repurchased at a price equal to the transaction price on the applicable repurchase date, subject to any early repurchase deduction. Our transaction price will generally equal our prior month's NAV per share for that share class. Shares repurchased within one year of the date of issuance generally will be repurchased at 95% of the current transaction price (the “Early Repurchase Deduction”). The Early Repurchase Deduction will not apply to shares acquired through the distribution reinvestment plan discussed below. Due to the illiquid nature of investments in commercial real estate loans, we may not have sufficient liquid resources to fund repurchase requests. Our Board may modify or suspend the share repurchase plan. Class F stockholders may not participate in our share repurchase plan until the earlier of (i) the date our NAV reaches $1.5 billion and (ii) March 23, 2028. However, Class F stockholders are entitled to request that we repurchase their shares in the event that there is a key person event or a material strategy change as defined in the terms of the Class F subscription agreement. We did not receive any stockholder redemption requests in the year ended December 31, 2023. Distribution Reinvestment Plan We have adopted a distribution reinvestment plan whereby stockholders will have their cash distributions automatically reinvested in additional shares of common stock unless they elect to receive their distributions in cash. The per share purchase price for shares purchased under the distribution reinvestment plan is equal to the transaction price at the time the distribution is payable. The transaction price will generally be equal to our prior month’s NAV per share for that share class. Stockholders do not pay upfront selling commissions when purchasing shares under the distribution reinvestment plan; however, all outstanding Class S, Class S-1 and Class D shares purchased under the distribution reinvestment plan will be subject to an ongoing stockholder servicing fee. The stockholder servicing fees for Class S shares, Class S-1 shares and Class D shares are calculated based on the NAV for those shares and reduce the NAV and the distributions payable with respect to shares of each such class. Share-Based Compensation Plan In November 2023, we granted 2,989 restricted shares of Class E common stock to our independent directors under the terms of our Incentive Plan. The restricted shares will become unrestricted shares of common stock on the first anniversary of the grant date unless forfeited, subject to certain conditions that accelerate vesting. As of December 31, 2023, we had 1,097,011 shares of common stock available for future issuance under the Incentive Plan. |
Earnings per Common Share
Earnings per Common Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share Earnings per share for the year ended December 31, 2023 is computed as presented in the table below. We did not present a calculation for earnings per share for the year ended December 31, 2022, because we did not issue any common stock in the year ended December 31, 2022. $ in thousands, except per share amount Year Ended December 31, 2023 Numerator (Income) Basic Earnings: Net income (loss) available to common stockholders $ 451 Denominator (Weighted Average Shares) Basic Earnings: Shares available to common stockholders 1,576,538 Effect of dilutive securities: Restricted stock awards 50 Dilutive Shares 1,576,588 Earnings (loss) per share: Net income (loss) attributable to common stockholders Basic $ 0.29 Diluted $ 0.29 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments A three-level valuation hierarchy exists for disclosure of fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect our market assumptions. The three levels are defined as follows: Level 1 — quoted prices are available in active markets for identical investments as of the measurement date. We do not adjust the quoted price for these investments. Level 2 — quoted prices are available in markets that are not active or model inputs are based on inputs that are either directly or indirectly observable as of the measurement date. Level 3 — pricing inputs are unobservable and include instances where there is minimal, if any, market activity for the investment. These inputs require significant judgment or estimation by management or third parties when determining fair value and generally represent anything that does not meet the criteria of Levels 1 and 2. Due to the inherent uncertainty of these estimates, these values may differ materially from the values that would have been used had a ready market for these investments existed. Valuation of Financial Instruments Measured at Fair Value The following table details our financial instruments measured at fair value on a recurring basis: December 31, 2023 Fair Value Measurements Using: $ in thousands Level 1 Level 2 Level 3 Total at Fair Value Assets: Commercial real estate loan investments $ — $ — $ 613,503 $ 613,503 Liabilities: Revolving credit facility — — 14,000 14,000 Repurchase agreements — — 457,861 457,861 Total liabilities $ — $ — $ 471,861 $ 471,861 Valuation of Commercial Real Estate Loan Investments Our commercial real estate loan investments consist of senior mortgages and similar credit quality loans, including related contiguous subordinate loans, and are classified as Level 3. The commercial loans are carried at fair value based on significant unobservable inputs. The following table shows a reconciliation of the beginning and ending fair value measurements of our commercial real estate loan investments: $ in thousands Year Ended December 31, 2023 Beginning Balance $ — Loan originations and fundings 613,503 Net unrealized gain (loss) — Ending Balance at December 31, 2023 $ 613,503 The following table summarizes the significant unobservable inputs used in the fair value measurement of our investments in commercial loans: Type Valuation Technique Unobservable Input Weighted Average Rate Range Weighted Average Life (years) Commercial loans Discounted cash flow Discount rate 8.52% 8.16% - 8.71% 2.12 The discount rate above is subject to change based on changes in economic and market conditions, in addition to changes in the underlying economics of the arrangement, such as changes in the underlying property valuation and debt service. These rates are also based on the location, type and nature of each underlying property and related industry publications. Changes in discount rates result in increases or decreases in the fair values of these investments. The discount rate encompasses, among other things, uncertainties in the valuation models with respect to the amount and timing of cash flows. It is not possible for us to predict the effect of future economic or market conditions based on our estimated fair values. Valuation of Revolving Credit Facility We entered into our revolving credit facility with Goldman Sachs in December 2023. Given the uncertainty of future cash flows, including our ability to prepay without penalty, we determined the fair value of our revolving credit facility to approximate par. The following table shows a reconciliation of the beginning and ending fair value measurements of our Goldman Sachs revolving credit facility: $ in thousands Year Ended December 31, 2023 Beginning Balance $ — Proceeds from revolving credit facility 14,000 Repayment of revolving credit facility — Net unrealized gain (loss) — Ending Balance at December 31, 2023 $ 14,000 Valuation of Repurchase Agreements We have entered into repurchase agreement facilities to provide floating rate financing for our commercial real estate loan investments. Our repurchase agreements are carried at fair value based on significant unobservable inputs and are classified as Level 3. The following table shows a reconciliation of the beginning and ending fair value measurements of our repurchase agreements: $ in thousands Year Ended December 31, 2023 Beginning Balance $ — Transfers from Level 2 117,140 Borrowings under repurchase agreements 340,721 Repayments of repurchase agreements — Net unrealized gain (loss) — Ending Balance at December 31, 2023 $ 457,861 Transfers into or out of the Level 3 category occur when unobservable inputs, such as the Company’s best estimate of what a market participant would use to determine a current transaction price, become more or less significant to the fair value measurement. Transfers into Level 3 for the year ended December 31, 2023 include the fair value of the outstanding principal balance for two repurchase agreements entered into in May and June 2023 and primarily relates to the reduction of available observable inputs. The following table summarizes the significant unobservable inputs used in the fair value measurement of our repurchase agreements: Type Valuation Technique Unobservable Input Weighted Average Rate Range Weighted Average Life (years) Repurchase agreements Discounted cash flow Discount rate 7.62% 7.31% - 7.86% 1.48 The discount rate above is subject to change based on changes in economic and market conditions, in addition to changes in the underlying economics of the pledged commercial real estate loan, such as changes in the loan-to-value ratio, credit profile and debt service. These rates are also based on the location, type and nature of each pledged property underlying the commercial real estate loan and related industry publications. Changes in discount rates result in increases or decreases in the fair values of these investments. The discount rate encompasses, among other things, uncertainties in the valuation models with respect to the amount and timing of cash flows. It is not possible for us to predict the effect of future economic or market conditions based on our estimated fair values. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Due to Affiliates The following table details the components of due to affiliates as of December 31, 2023 (December 31, 2022: $76. See Note 5 - “Loan Payable - Related Party”). As of $ in thousands December 31, 2023 Adviser commitment fee payable $ 113 Advanced organizational costs 707 Advanced offering costs 1,293 Advanced debt issuance costs 3,727 Advanced general and administrative expenses (1) 2,993 Accrued stockholder servicing fees 1,334 Total $ 10,167 (1) Advanced general and administrative expenses includes approximately $73,000 of prepaid expenses which are included in Other assets on our consolidated balance sheets. Adviser Commitment Fee We charge a commitment fee to borrowers in connection with the origination of each new loan. The commitment fee is calculated as a percentage of the whole loan at the time of the loan closing. We pay the Adviser 50% of the commitment fee (not to exceed 0.5% of the loan amount) as compensation for sourcing, structuring and negotiating the loan. The commitment fee income and related expense to the Adviser is reported as commitment fee income, net of related party expense on the consolidated statements of operations. As of December 31, 2023, we owed the Adviser $113,000 for commitment fees (as of December 31, 2022: None). Organizational Costs and Offering Expenses The Adviser has agreed to advance all of our organizational costs and offering expenses (other than upfront selling commissions and ongoing stockholder servicing fees) incurred through the earlier of (1) the date that our NAV reaches $1.0 billion and (2) March 31, 2024. Under the terms of our amended advisory agreement dated March 26, 2024, we will reimburse the Adviser for all of our organizational costs and offering expenses advanced through March 31, 2024 ratably over the 52 months commencing December 1, 2024. Under the terms of our advisory agreement, organizational costs and offering expenses became a liability of the Company on March 23, 2023. Organizational costs and offering expenses include costs incurred by the Adviser prior to entering into the advisory agreement with the Company. As of December 31, 2023 , we owed the Adviser for organizational costs and offering expenses that the Adviser incurred on our behalf of approximately $707,000 and $1.3 million, respectively (December 31, 2022: None and None , respectively), that are recorded as a component of due to affiliates on our consolidated balance sheets. Operating Expenses Reimbursement The Adviser has agreed to advance our operating expenses, including debt issuance costs and general and administrative expenses, incurred through the earlier of (1) the date that our NAV reaches $500 million and (2) March 31, 2024 . Under the terms of our amended advisory agreement dated March 26, 2024, we will reimburse the Adviser for all of our operating expenses advanced through March 31, 2024 ratably over 52 months commencing December 1, 2024. As of December 31, 2023 , the Adviser had incurred operating expenses, including debt issuance costs of $3.7 million (December 31, 2022: None) and general and administrative expenses of $3.0 million (December 31, 2022: None ) on our behalf that are recorded as a component of due to affiliates on our consolidated balance sheets. Following March 31, 2024, we will reimburse the Adviser at the end of each fiscal quarter for total operating expenses paid by the Adviser. However, we may not reimburse the Adviser at the end of any fiscal quarter for total operating expenses (as defined in our charter) that, in the four consecutive fiscal quarters then ended, exceed the greater of 2% of average invested assets or 25% of net income determined without reduction for any non-cash reserves and excluding any gain from the sale of our assets for that period (the “2%/25% Guidelines”). We may reimburse the Adviser for expenses in excess of the 2%/25% Guidelines if a majority of our independent directors determines that such excess expenses are justified based on unusual and non-recurring factors. Stockholder Servicing Fees and Other Selling Commissions We have entered into an agreement with the Dealer Manager in connection with the Continuous Offering. Under the terms of our agreement, the Dealer Manager is entitled to receive upfront selling commissions and stockholder servicing fees for Class S, Class S-1 and Class D shares sold in the Continuous Offering. The Dealer Manager reallows (pays) all or a portion of the stockholder servicing fees to participating broker-dealers and servicing broker-dealers for ongoing stockholder services performed by such broker-dealers. We accrue the full amount of stockholder servicing fees payable as an offering cost at the time each Class S-1 share is sold during the Continuous Offering. During the year ended December 31, 2023, we paid approximately $15,000 of stockholder servicing fees with respect to the outstanding Class S-1 shares and did not incur stockholder servicing fees with respect to the outstanding Class S and Class D shares. As of December 31, 2022, we had not incurred selling commissions or stockholder servicing fees. The following table summarizes the upfront selling commissions for each class of shares payable at the time of subscription and the stockholder servicing fee we pay the Dealer Manager on an annualized basis as a percentage of the NAV for such class: Class S Class S-1 Shares Class D Class I Class E Class F Maximum Upfront Selling Commissions up to 3.5% up to 3.5% up to 1.5% — — — Stockholder Servicing Fee 0.85% 0.85% 0.25% — — — We will cease paying the stockholder servicing fee with respect to any Class S share or Class D share held in a stockholder’s account at the end of the month in which the Dealer Manager, in conjunction with the transfer agent, determines that total upfront selling commissions and stockholder servicing fees paid with respect to the shares held by the stockholder would exceed, in the aggregate, 8.75% of the gross proceeds from the sale of such shares (including the gross proceeds of any shares issued under our distribution reinvestment plan upon the reinvestment of distributions paid with respect thereto or with respect to any shares issued under our distribution reinvestment plan directly or indirectly attributable to such shares). At the end of such month, such Class S share or Class D share will convert into a number of Class I shares (including any fractional shares), with an equivalent aggregate NAV as such share. Such servicing fee limit does not apply to the Class S-1 shares. Management Fee and Performance Fee We will pay the Adviser a management fee equal to 1.0% per annum of NAV, calculated monthly in arrears as of the end of the immediately preceding month with respect to our Class S Shares, Class S-1 Shares, Class D Shares and Class I Shares. We will also pay the Adviser a Performance Fee equal to 10% of our “Performance Fee Income.” Performance Fee Income with respect to each class of common shares subject to a performance fee means the net income (determined in accordance with U.S. GAAP) allocable to such class of common shares subject to adjustment as defined under the terms of our advisory agreement. We will not pay the Adviser a performance fee with respect to any class of shares that has a negative total return per share for the calendar year. For purposes of the performance fee calculation, total return per share is defined as an amount equal to: (i) the cumulative distributions per share accrued with respect to such class of common shares since the beginning of the calendar year plus (ii) the change in NAV per share of such class of common shares since the beginning of the calendar year, prior to giving effect to (y) any accrual for performance fees with respect to such class of common shares or (z) any applicable stockholder servicing fees. The management fee and the performance fee are payable in cash or Class E shares at the option of the Adviser. We will not pay the Adviser a management or performance fee with respect to our Class E shares. We will not pay the Adviser a management fee with respect to our Class F shares. We will pay the Adviser a performance fee with respect to the Class F shares. The Class F performance fee payable with respect to each calendar year will be an amount equal to 10% of the excess of Performance Fee Income allocable to Class F Shares over a 6% annualized return on the Class F NAV per share. No performance fee is payable if the Performance Fee Income allocable to Class F is below the annualized 6% return in any calendar year or for a rolling two-year period. Management fees and performance fees will begin to accrue on March 1, 2024. Management fees will be paid quarterly in arrears and performance fees will be paid annually. The initial term of our advisory agreement expires on March 31, 2025. The advisory agreement is subject to automatic renewals for successive one-year periods unless otherwise terminated in accordance with the provisions of the agreement. If the advisory agreement is terminated, the Adviser will be entitled to receive its prorated management fee and performance fee owed through the date of termination. If we elect not to renew our advisory agreement based on unsatisfactory performance and not for cause, we owe our Adviser a termination fee equal to three times the sum of our average annual management fee during the 24-month period before termination, calculated as of the end of the most recently completed fiscal quarter. Our Adviser is subject to the supervision and oversight of our Board and has only such functions and authority as we delegate to it. The Adviser and its affiliates provide us with our management team, including our officers and appropriate support personnel. Each of our officers is an employee of the Adviser or one of its affiliates. We do not have any employees. We incurred $420,000 (December 31, 2022: None) of costs for support personnel provided by the Adviser for the year ended December 31, 2023 that are recorded as a component of due to affiliates on our consolidated balance sheets. Related Party Share Ownership The table below summarizes the number of shares and the total purchase price of the shares that have been purchased by affiliates as of December 31, 2023. $ in thousands, except share amounts Class S Shares Class S-1 Shares Class D Shares Class I Shares Class E Shares Total Purchase Price Invesco Realty, Inc. (1) 1,052,487 — 1,052,487 1,052,487 1,052,464 $ 105,340 Members of our board of directors (2) — — — — 2,989 75 Total 1,052,487 — 1,052,487 1,052,487 1,055,453 $ 105,415 (1) Shares issued to Invesco Realty, Inc. are governed by the terms of the Invesco Subscription Agreement and classified as redeemable common shares on the consolidated balance sheet. See Note 7 - Redeemable Common Stock” for further information. (2) Represents stock awards under our Share-Based Compensation Plan. See Note 8, “Stockholders’ Equity” for further information. |
Commitment and Contingencies
Commitment and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments and contingencies may arise in the ordinary course of business. As of December 31, 2023, we had unfunded commitments of $57.9 million for six of our commercial real estate loan investments. The unfunded commitments consist of funding for leasing costs, interest reserves and capital expenditures. Funding depends on timing of lease-up, renovation and capital improvements as well as satisfaction of certain cash flow tests. Therefore, the exact timing and amounts of such future loan fundings are uncertain. We expect to fund our loan commitments over the weighted average remaining term of the related loans of 1.89 years. We have also committed to pay counterparty legal, diligence and other fees in connection with new financing facilities in the ordinary course of business. From time to time, we may be involved in various claims and legal actions arising in the ordinary course of business. As of December 31, 2023, we were not involved in any material legal proceedings. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Investment Portfolio Activity Subsequent to December 31, 2023, we originated 4 commercial real estate loans with an aggregate outstanding principal amount of $204.4 million and a total loan amount of $283.1 million. The loans earn interest at one-month term SOFR plus a spread for a weighted average interest rate of 8.37% based on the interest rate in effect at origination. Stockholders’ Equity Subsequent to December 31, 2023, we issued the following stock: $ in thousands except share amounts Shares Net Proceeds Common Stock: Class S — $ — Class S-1 (1)(2) 1,489,171 36,917 Class D — — Class I (3)(4) 664,466 16,494 Class E (5)(6) 58,617 1,455 Total 2,212,254 $ 54,866 (1) Includes 1,467,311 shares issued to retail investors for net proceeds of $36.9 million. (2) Includes 21,860 shares issued under our distribution reinvestment plan for a total value of $550,000, which is excluded from Net Proceeds. (3) Includes 656,221 shares issued to retail investors for net proceeds of $16.5 million. (4) Includes 8,245 shares issued under our distribution reinvestment plan for a total value of $207,000, which is excluded from Net Proceeds. (5) Includes 57,994 shares issued to retail investors for net proceeds of $1.5 million. (6) |
Quarterly Financial Data (unaud
Quarterly Financial Data (unaudited) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Quarterly Financial Data (unaudited) | Quarterly Financial Data (unaudited) Revision of Previously Issued Interim Financial Statements In the fourth quarter of 2023, we identified interpretive guidance for public companies that is related to the accounting for and balance sheet classification of redeemable common stock issued to Invesco Realty, Inc. under the Invesco Subscription Agreement. We determined that we should classify common stock held by Invesco Realty, Inc. as redeemable common stock because our Adviser has been deemed to have control of the Company for accounting purposes. We have recorded the common stock held by Invesco Realty, Inc. at redemption value as of December 31, 2023. The reclassification of Invesco Realty, Inc’s common stock from stockholders’ equity to redeemable common stock did not have any impact on our net asset value, consolidated statement of operations or our consolidated statement of cash flows. For further information regarding redeemable common stock, see Note 2 - “Summary of Significant Accounting Policies - Redeemable Common Stock” and Note 7 - “Redeemable Common Stock”. We concluded that the stockholders’ equity misclassification is immaterial to the interim condensed consolidated financial statements that were included in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2023. The impacts of the reclassification on our consolidated balance sheet and the consolidated statement of changes in stockholders’ equity as of and for the nine months ended September 30, 2023 are as follows: $ in thousands except share amounts As Reported Adjustment As Revised Redeemable common stock - related party $ — $ 85,340 $ 85,340 Common stock, Class S shares, $0.01 par value per share, 500,000,000 shares authorized 9 (9) — Common stock, Class D shares, $0.01 par value per share, 500,000,000 shares authorized 9 (9) — Common stock, Class I shares, $0.01 par value per share, 500,000,000 shares authorized 9 (9) — Common stock, Class E shares, $0.01 par value per share, 500,000,000 shares authorized 9 (9) — Additional paid-in capital 85,313 (85,304) 9 |
Schedule IV - Mortgage Loans on
Schedule IV - Mortgage Loans on Real Estate | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
Schedule IV - Mortgage Loans on Real Estate | INVESCO COMMERCIAL REAL ESTATE FINANCE TRUST, INC. Schedule IV Mortgage Loans on Real Estate As of December 31, 2023 $ in thousands Type of Loan (1)(2) Description / Location Interest Rate (3) Maturity Date (4) Periodic Payment Terms (5) Prior Liens Face Amount of Mortgages Carrying Amount of Mortgages (6) Principal Amount of Loans Subject to Delinquent Principal or Interest Senior Loan Industrial / Phoenix 8.71 % 6/9/2028 I $ — $ 121,269 $ 121,269 $ — Senior Loan Multifamily / San Jose 8.52 % 6/9/2028 I — 41,700 41,700 — Senior Loan Multifamily / New York 8.47 % 8/9/2028 I — 73,600 73,600 — Senior Loan Multifamily / Los Angeles 8.47 % 8/9/2028 I — 80,383 80,383 — Senior Loan Industrial / Miami 8.72 % 9/9/2028 I — 35,130 35,130 — Senior Loan Industrial / Richmond 8.71 % 10/9/2028 I — 31,560 31,560 — Senior Loan Industrial / Atlanta 8.71 % 11/9/2028 I — 78,784 78,784 — Senior Loan Multifamily / Dallas 8.17 % 12/9/2028 I — 60,077 60,077 — Senior Loan Multifamily / Seattle 8.32 % 12/9/2028 I — 68,500 68,500 — Senior Loan Multifamily / New York 8.36 % 12/9/2028 I — 22,500 22,500 — Total loans $ — $ 613,503 $ 613,503 $ — (1) Senior loans may include accommodation mezzanine loans in connection with the senior mortgage financing. (2) Each individual mortgage loan exceeded 3% of the total carrying amount of our loan portfolio as of December 31, 2023. (3) The interest rates are expressed as the one-month Term SOFR of the most recent interest period in effect as of December 31, 2023 plus a spread. (4) Maximum maturity assumes all extension options are exercised by the borrower; however, loans may be repaid prior to such date. Extension options are subject to certain conditions as defined in the respective loan agreement. (5) I = interest only until the stated maturity date of the loan. (6) The tax basis of the loans included above is $615.9 million as of December 31, 2023. Reconciliation of Carrying Value of Mortgage Loans on Real Estate: The following table reconciles mortgage loans on real estate for the year ended December 31, 2023: 2023 Balance at beginning of period $ — Additions during period: Originations and fundings of new loans 613,503 Unrealized gain — Deductions during period: Collection of principal — Unrealized loss — Balance at end of period $ 613,503 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation Our consolidated financial statements have been prepared in accordance with U.S. GAAP and consolidate the financial statements of the Company and its controlled subsidiaries. All significant intercompany transactions, balances, revenues and expenses are eliminated upon consolidation. All numbers in these notes, except in the tables herein, are stated in full amounts, unless otherwise indicated. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. Examples of estimates may include, but are not limited to, estimates of the fair values of financial instruments and estimated payment periods for certain stockholder servicing fee liabilities. Actual results may differ from those estimates. |
Fair Value Measurements | Fair Value Measurements We have elected the fair value option for our commercial real estate loan investments, our repurchase agreements and our revolving credit facility. The Company believes the fair value option will provide its financial statements users with reduced complexity, greater consistency, understandability and comparability. In the month that we originate or acquire a loan, we value our commercial real estate loan investments at fair value, which approximates par. Thereafter, an independent valuation advisor values our commercial loan investments monthly using a discounted cash flow analysis. The yield used in the discounted cash flow analysis is determined by comparing the features of the loan to the interest rates and terms required by lenders in the new loan origination market for similar loans and the yield required by investors acquiring similar loans in the secondary market as well as a comparison of current market and collateral conditions to those present at origination or acquisition. |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents We consider all highly liquid investments that have original or remaining maturity dates of three months or less when purchased to be cash equivalents. Cash and cash equivalents are carried at cost, which approximates fair value due to the highly liquid and short-term nature of these instruments. We may have cash balances in excess of federally insured amounts. We mitigate our risk of loss by maintaining cash deposits with high credit-quality institutions and by actively monitoring the credit risk of our counterparties. Restricted Cash Restricted cash represents cash deposited with our transfer agent for investor subscriptions received prior to the date the subscriptions are effective. Cash held by our transfer agent is not available for general corporate purposes. |
Commercial Real Estate Loan Investments | Commercial Real Estate Loan Investments Commercial real estate loan investments structured as senior loans are generally secured by the borrower’s interest in underlying real estate, and those structured as mezzanine loans are generally secured by the borrower’s equity interests in entities that own underlying real estate. Our investments in commercial real estate loans are supported by perfected security interests in the underlying collateral. We report our commercial real estate loan investments at fair value as described in the Fair Value Measurements section of this Note 2 to the consolidated financial statements. We have elected the fair value option for the commercial loans that we have originated as of the date of our financial statements. We record changes in fair value within unrealized gain (loss) on investments, net in our consolidated statements of operations. We recognize interest income from commercial real estate loans when earned and deemed collectible, or until a loan becomes past due based on the terms of the loan agreement. Income accrual is generally suspended for loans at the earlier of the date on which payments become 90 days past due or when recovery of income and principal becomes doubtful. Interest received after a loan becomes past due or impaired is used to reduce the outstanding loan principal balance. When a delinquent loan previously placed on nonaccrual status has cured, meaning all delinquent principal and interest have been remitted by the borrower, the loan is placed back on accrual status. Alternately, loans that have been placed on nonaccrual status may be placed back on accrual status if restructured and after the loan is considered re-performing. We recognize origination fees and related costs for commercial loans immediately in earnings when we elect the fair value option for commercial loans. The Adviser’s portion of the commitment fee is not due until commitment fees have been received from the borrower; the Adviser is responsible for sourcing, structuring and negotiating loans, and the Adviser has discretion in determining loan fees. The Company discloses this related party expense paid to the Adviser on the face of our consolidated statements of operations to provide transparency as to all fees paid to the Adviser. For the year ended December 31, 2023, there were four commercial real estate loan borrowers who individually accounted for more than 10% of our consolidated gross income. In the event of a partial or whole sale of a commercial loan that qualifies for sale accounting under U.S. GAAP, we derecognize the corresponding asset, and fees paid as part of the partial or whole sale are recognized on our consolidated statements of operations. |
Share-Based Compensation | Share-Based Compensation Under the terms of our 2023 Equity Incentive Plan (the “Incentive Plan”), our independent directors are eligible to receive stock awards as part of their compensation for serving as directors. In addition, we may compensate the employees of our Adviser and its affiliates under the Incentive Plan. |
Underwriting Commissions, Related Party Selling Commissions and Offering Costs, Stockholder Servicing Fees, And Redeemable Common Stock | Underwriting Commissions, Related Party Selling Commissions and Offering Costs We record underwriting commissions, related party selling commissions and direct costs incurred in connection with our common and preferred stock offerings as a reduction of additional paid-in capital and preferred stock, respectively, when we issue stock. Stockholder Servicing Fees As described in Note 11 - “Related Party Transactions”, we will pay a registered broker-dealer affiliated with the Adviser (the “Dealer Manager”) stockholder servicing fees over time for Class S, Class S-1 and Class D shares sold in the Continuous Offering. Under the terms of our agreement with the Dealer Manager, we calculate stockholder servicing fees as a percentage of Class S NAV, Class S-1 NAV and Class D NAV on an annualized basis. We accrue the full amount of stockholder servicing fees payable as an offering cost at the time each Class S, Class S-1, and Class D share is sold during the Continuous Offering and record the stockholder servicing fee as a reduction of additional paid-in capital when we issue stock. We adjust the liability for stockholder servicing fees as the fees are paid to the Dealer Manager or when fees are no longer payable under the terms of our agreement with the Dealer Manager. Redeemable Common Stock We classify common stock held by Invesco Realty, Inc., an Invesco affiliate, as redeemable common stock on our consolidated balance sheets. We determined that we should classify common stock held by Invesco Realty, Inc. as redeemable common stock because our Adviser has been deemed to have control of the Company for accounting purposes. We report our redeemable common stock on our consolidated balance sheets at redemption value. Redemption value is determined based on our net asset value (“NAV”) per share as of our balance sheet date. We calculate NAV as U.S. GAAP stockholders’ equity adjusted for the redemption value of our redeemable common stock; certain organizational expenses, offering costs and operating expenses advanced by our Adviser that are not currently payable; accrued stockholder fees not currently payable; and the liquidation preference of our preferred stock. Increases or decreases in the value of redeemable common stock will be charged to additional paid-in capital until the Company has retained earnings. |
Repurchase Agreements | Repurchase Agreements We have financed our investments in commercial real estate loans primarily through the use of repurchase agreements. These financing transactions are secured by our commercial real estate loan investments; therefore, we treat repurchase agreements as collateralized financing transactions and carry repurchase agreements at fair value in our consolidated financial statements. Because we elected the fair value option for repurchase agreements, we record changes in fair value as unrealized gain (loss) on borrowings, net in our consolidated statements of operations. We account for our repurchase agreements as secured borrowings because we maintain effective control over the commercial real estate loans that we have financed. We record investments in commercial real estate loans and the related repurchase agreement financing on a gross basis in our consolidated balance sheets, and the corresponding interest income and interest expense on a gross basis in our consolidated statements of operations. |
Debt Issuance Costs | Debt Issuance Costs |
Earnings (Loss) per Share | Earnings (Loss) per Share We calculate basic earnings per share by dividing net earnings attributable to common stockholders for the period by the weighted average number of common shares outstanding during the period, including redeemable common stock. Diluted earnings per share takes into account the effect of dilutive instruments, such as unvested restricted stock awards, and uses the average share price for the period in determining the number of incremental shares that are to be added to the weighted-average number of shares outstanding. |
Income Taxes | Income Taxes We intend to qualify to be taxed as a REIT commencing with our taxable year ended December 31, 2023. We will elect REIT status when we file our 2023 tax return in 2024. Accordingly, we will generally not be subject to U.S. federal and applicable state and local corporate income tax to the extent that we make qualifying distributions to our stockholders, and provided that we satisfy certain asset, income, distribution and stock ownership tests on an ongoing basis. If we fail to qualify as a REIT and do not qualify for certain statutory relief provisions, we will be subject to U.S. federal, state and local income taxes and may be precluded from qualifying as a REIT for the four taxable years following the year in which we lost our REIT qualification. Accordingly, our failure to qualify as a REIT could have a material adverse impact on our results of operations and amounts available for distribution to stockholders. We compute our dividends paid deduction for qualifying dividends to our stockholders using our REIT taxable income as opposed to net income reported on our consolidated financial statements. REIT taxable income will generally differ from net income determined in accordance with U.S. GAAP, because the determination of REIT taxable income is based on tax regulations and not financial accounting principles. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In November 2023, the Financial Standards Accounting Board issued an accounting standards update intended to improve reportable segment disclosure requirements on an annual and interim basis. The amendments require, among other items, enhanced disclosures around significant segment expenses regularly provided to the chief operating decision maker (“CODM”), as well as the CODM's title and position. Additionally, the amendments expand the scope of all segment reporting disclosure requirements to include those entities with only a single operating segment, such as us. We are required to implement the amendments in our consolidated financial statements for the year ended December 31, 2024 and for interim periods thereafter. The amendments must be applied on a retrospective basis and early adoption is permitted. We are currently evaluating the impact of these amendments on our disclosures. |
Commercial Real Estate Loan I_2
Commercial Real Estate Loan Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Investments in Commercial Real Estate Loans | As of December 31, 2023, we have the following investments in commercial real estate loans. We did not have any investments in commercial real estate loans as of December 31, 2022. Loans include senior mortgages and similar credit quality loans, including related contiguous subordinate loans. $ in thousands Metropolitan Statistical Area Property Type Origination Date Weighted Average Interest Rate (1) Loan Amount (2) Principal Balance Outstanding Fair Value Current Maturity Maximum Maturity (3) Phoenix Industrial 5/17/2023 8.71% $ 136,000 $ 121,269 $ 121,269 6/9/2025 6/9/2028 San Jose (4) Multifamily 5/31/2023 8.52% 41,700 41,700 41,700 6/9/2026 6/9/2028 New York (5) Multifamily 7/26/2023 8.47% 73,600 73,600 73,600 8/9/2026 8/9/2028 Los Angeles Multifamily 8/4/2023 8.47% 85,180 80,383 80,383 8/9/2025 8/9/2028 Miami Industrial 8/25/2023 8.72% 42,676 35,130 35,130 9/9/2025 9/9/2028 Richmond Industrial 9/25/2023 8.71% 38,300 31,560 31,560 10/9/2025 10/9/2028 Atlanta Industrial 11/6/2023 8.71% 92,950 78,784 78,784 11/9/2025 11/9/2028 Dallas Multifamily 12/7/2023 8.17% 70,000 60,077 60,077 12/9/2026 12/9/2028 Seattle Multifamily 12/12/2023 8.32% 68,500 68,500 68,500 12/9/2026 12/9/2028 New York (6) Multifamily 12/21/2023 8.36% 22,500 22,500 22,500 12/9/2026 12/9/2028 8.53% $ 671,406 $ 613,503 $ 613,503 (1) Represents weighted average interest rate of the most recent interest period in effect for each loan as of period end. Loans earn interest at the one-month Term Secured Overnight Financing Rate (“SOFR”) plus a spread. (2) Loan amount consists of outstanding principal balance plus unfunded loan commitments. (3) Maximum maturity assumes all extension options are exercised by the borrower; however, loans may be repaid prior to such date. Extension options are subject to certain conditions as defined in the respective loan agreement. (4) An affiliate of the Adviser previously originated a loan to an unaffiliated borrower in August 2018 secured by the same collateral as this loan. We negotiated the terms of our loan directly with the unaffiliated borrower at market and without the involvement of the affiliate of the Adviser. The unaffiliated borrower used the refinancing proceeds from our loan to repay the loan of the affiliate of the Adviser. (5) The total whole loan is $73.6 million, including (i) a senior mortgage loan of $55.2 million and (ii) a mezzanine note of $18.4 million. (6) The total whole loan is $22.5 million, including (i) a senior mortgage loan of $18.0 million and (ii) a mezzanine note of $4.5 million. |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The below table summarizes our repurchase agreement and revolving line of credit borrowings as of December 31, 2023. We did not have any repurchase agreement or revolving credit facility borrowings as of December 31, 2022. $ in thousands Weighted Average Interest rate (1) Maturity Date Maximum Facility Size Amount Outstanding Fair Value Available Balance Repurchase Agreements: Morgan Stanley Bank N.A. (2) 7.86% 5/25/2025 $ 250,000 $ 174,209 $ 174,209 $ 75,791 Citibank N.A. (3) 7.63% 6/1/2025 (original); 6/1/2027 (fully extended) 200,000 61,464 61,464 138,536 Bank of Montreal (4) 7.44% 7/18/2025 (original); 7/14/2028 (fully extended) 234,144 222,188 222,188 11,956 Total Repurchase Agreements 7.63% 684,144 457,861 457,861 226,283 Revolving Credit Facility (5) 8.26% 100,000 14,000 14,000 86,000 Total 7.64% $ 784,144 $ 471,861 $ 471,861 $ 312,283 (1) Represents weighted average interest rate as of period end. Borrowings under our repurchase agreements and revolving credit facility carry interest at one-month Term SOFR plus a spread. (2) Borrowing facility has an extension option of one year, subject to lender approval and compliance with certain financial and administrative covenants. (3) Borrowing facility reflects maximum maturity of two remaining extension options of one year each, because these extensions are at our option. The extensions, consistent with our current borrowing terms, are subject to ongoing compliance with certain financial and administrative covenants as well as payment of applicable extension fees. (4) Borrowing facility has three extension options of one year, subject to lender approval and compliance with certain financial and administrative covenants. |
Schedule of Maturities of Long-Term Debt | The following table shows the aggregate amount of maturities of our outstanding borrowings over the next five years and thereafter as of December 31, 2023: Year Repurchase Agreements Revolving Credit Facility Total $ in thousands 2024 $ — $ 14,000 $ 14,000 2025 457,861 — 457,861 2026 — — — 2027 — — — 2028 — — — Thereafter — — — Total $ 457,861 $ 14,000 $ 471,861 |
Accounts payable, accrued exp_2
Accounts payable, accrued expenses and other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | The following table details the components of accounts payable, accrued expenses and other liabilities as of December 31, 2023. We did not have any accounts payable, accrued expenses and other liabilities as of December 31, 2022. $ in thousands December 31, 2023 Accounts payable and accrued expenses $ 14 Subscriptions paid in advance (1) 23,566 Other liabilities 398 Total $ 23,978 (1) Represents subscriptions received by our transfer agent prior to the date the subscriptions are effective. |
Redeemable Common Stock - Rel_2
Redeemable Common Stock - Related Party (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Temporary Equity Disclosure [Abstract] | |
Schedule of Stock by Class | The following tables summarize the changes in our outstanding shares of redeemable common stock for the year ended December 31, 2023: Class S Redeemable Common Stock Class D Redeemable Common Stock Class I Redeemable Common Stock Class E Redeemable Common Stock Total Redeemable Common Stock $ in thousands Balance as of December 31, 2022 $ — $ — $ — $ — $ — Proceeds from issuance of redeemable common stock 26,335 26,335 26,335 26,335 105,340 Adjustment to carrying value of redeemable common stock — — — — — Balance as of December 31, 2023 $ 26,335 $ 26,335 $ 26,335 $ 26,335 $ 105,340 Class S Redeemable Common Shares Class D Redeemable Common Shares Class I Redeemable Common Shares Class E Redeemable Common Shares Total Redeemable Common Shares Balance as of December 31, 2022 — — — — — Issuance of redeemable common stock 1,052,487 1,052,487 1,052,487 1,052,464 4,209,925 Balance as of December 31, 2023 1,052,487 1,052,487 1,052,487 1,052,464 4,209,925 |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Common Stock Outstanding Roll Forward | The following table summarizes changes in our outstanding shares of common stock for the year ended December 31, 2023. We did not issue any common stock in 2022. Class S Class S-1 Shares Class D Class I Class E Total Total Outstanding Shares as of December 31, 2022 — — — — — — Issuance of common shares to unaffiliated stockholders 111 1,052,255 111 330,438 12,352 1,395,267 Stock awards (1) — — — — 2,989 2,989 Common stock distribution reinvestment — 1,919 — 581 — 2,500 Common stock shares as of December 31, 2023 111 1,054,174 111 331,019 15,341 1,400,756 Issuance of redeemable common shares (2) 1,052,487 — 1,052,487 1,052,487 1,052,464 4,209,925 Total Outstanding Shares as of December 31, 2023 1,052,598 1,054,174 1,052,598 1,383,506 1,067,805 5,610,681 (1) Represents shares issued to independent directors under the Incentive Plan. See Share-Based Compensation Plan below. (2) Consists of shares issued to an Invesco affiliate that are classified as redeemable common stock. See Note 7 - “Redeemable Common Stock.” |
Dividends Declared | The following table details the aggregate distributions declared per share for each applicable class of stock for the year ended December 31, 2023: Year Ended December 31, 2023 Class S Class S-1 Class D Class I Class E Aggregate distribution declared per share $ 4.7628 $ 0.8810 $ 4.7628 $ 4.7628 $ 4.7628 Stockholder servicing fee per share — (0.0539) — — — Net distribution declared per share $ 4.7628 $ 0.8271 $ 4.7628 $ 4.7628 $ 4.7628 The following table sets forth the dividends declared per share of our preferred and common stock that are taxable in the fiscal tax year ended December 31, 2023 and the related tax characterization. Tax Characterization of Dividends Dividends Declared and Taxable in Current Year Ordinary Dividends Return of Capital Capital Gain Distribution Series A Preferred Stock $ 5.9000 $ 5.9000 $ — $ — Common Stock: Class S $ 4.2018 $ 3.2044 $ 0.9974 $ — Class S-1 $ 0.3200 $ 0.2440 $ 0.0760 $ — Class D $ 4.2018 $ 3.2044 $ 0.9974 $ — Class I $ 4.2018 $ 3.2044 $ 0.9974 $ — Class E $ 4.2018 $ 3.2044 $ 0.9974 $ — |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | $ in thousands, except per share amount Year Ended December 31, 2023 Numerator (Income) Basic Earnings: Net income (loss) available to common stockholders $ 451 Denominator (Weighted Average Shares) Basic Earnings: Shares available to common stockholders 1,576,538 Effect of dilutive securities: Restricted stock awards 50 Dilutive Shares 1,576,588 Earnings (loss) per share: Net income (loss) attributable to common stockholders Basic $ 0.29 Diluted $ 0.29 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table details our financial instruments measured at fair value on a recurring basis: December 31, 2023 Fair Value Measurements Using: $ in thousands Level 1 Level 2 Level 3 Total at Fair Value Assets: Commercial real estate loan investments $ — $ — $ 613,503 $ 613,503 Liabilities: Revolving credit facility — — 14,000 14,000 Repurchase agreements — — 457,861 457,861 Total liabilities $ — $ — $ 471,861 $ 471,861 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table shows a reconciliation of the beginning and ending fair value measurements of our commercial real estate loan investments: $ in thousands Year Ended December 31, 2023 Beginning Balance $ — Loan originations and fundings 613,503 Net unrealized gain (loss) — Ending Balance at December 31, 2023 $ 613,503 |
Fair Value Measurement Inputs and Valuation Techniques | The following table summarizes the significant unobservable inputs used in the fair value measurement of our investments in commercial loans: Type Valuation Technique Unobservable Input Weighted Average Rate Range Weighted Average Life (years) Commercial loans Discounted cash flow Discount rate 8.52% 8.16% - 8.71% 2.12 The following table summarizes the significant unobservable inputs used in the fair value measurement of our repurchase agreements: Type Valuation Technique Unobservable Input Weighted Average Rate Range Weighted Average Life (years) Repurchase agreements Discounted cash flow Discount rate 7.62% 7.31% - 7.86% 1.48 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table shows a reconciliation of the beginning and ending fair value measurements of our Goldman Sachs revolving credit facility: $ in thousands Year Ended December 31, 2023 Beginning Balance $ — Proceeds from revolving credit facility 14,000 Repayment of revolving credit facility — Net unrealized gain (loss) — Ending Balance at December 31, 2023 $ 14,000 $ in thousands Year Ended December 31, 2023 Beginning Balance $ — Transfers from Level 2 117,140 Borrowings under repurchase agreements 340,721 Repayments of repurchase agreements — Net unrealized gain (loss) — Ending Balance at December 31, 2023 $ 457,861 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following table details the components of due to affiliates as of December 31, 2023 (December 31, 2022: $76. See Note 5 - “Loan Payable - Related Party”). As of $ in thousands December 31, 2023 Adviser commitment fee payable $ 113 Advanced organizational costs 707 Advanced offering costs 1,293 Advanced debt issuance costs 3,727 Advanced general and administrative expenses (1) 2,993 Accrued stockholder servicing fees 1,334 Total $ 10,167 (1) Advanced general and administrative expenses includes approximately $73,000 of prepaid expenses which are included in Other assets on our consolidated balance sheets. The following table summarizes the upfront selling commissions for each class of shares payable at the time of subscription and the stockholder servicing fee we pay the Dealer Manager on an annualized basis as a percentage of the NAV for such class: Class S Class S-1 Shares Class D Class I Class E Class F Maximum Upfront Selling Commissions up to 3.5% up to 3.5% up to 1.5% — — — Stockholder Servicing Fee 0.85% 0.85% 0.25% — — — The table below summarizes the number of shares and the total purchase price of the shares that have been purchased by affiliates as of December 31, 2023. $ in thousands, except share amounts Class S Shares Class S-1 Shares Class D Shares Class I Shares Class E Shares Total Purchase Price Invesco Realty, Inc. (1) 1,052,487 — 1,052,487 1,052,487 1,052,464 $ 105,340 Members of our board of directors (2) — — — — 2,989 75 Total 1,052,487 — 1,052,487 1,052,487 1,055,453 $ 105,415 (1) Shares issued to Invesco Realty, Inc. are governed by the terms of the Invesco Subscription Agreement and classified as redeemable common shares on the consolidated balance sheet. See Note 7 - Redeemable Common Stock” for further information. (2) Represents stock awards under our Share-Based Compensation Plan. See Note 8, “Stockholders’ Equity” for further information. |
Subsequent Events (Tables)
Subsequent Events (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Schedule of Stockholders Equity | Subsequent to December 31, 2023, we issued the following stock: $ in thousands except share amounts Shares Net Proceeds Common Stock: Class S — $ — Class S-1 (1)(2) 1,489,171 36,917 Class D — — Class I (3)(4) 664,466 16,494 Class E (5)(6) 58,617 1,455 Total 2,212,254 $ 54,866 (1) Includes 1,467,311 shares issued to retail investors for net proceeds of $36.9 million. (2) Includes 21,860 shares issued under our distribution reinvestment plan for a total value of $550,000, which is excluded from Net Proceeds. (3) Includes 656,221 shares issued to retail investors for net proceeds of $16.5 million. (4) Includes 8,245 shares issued under our distribution reinvestment plan for a total value of $207,000, which is excluded from Net Proceeds. (5) Includes 57,994 shares issued to retail investors for net proceeds of $1.5 million. (6) |
Quarterly Financial Data (una_2
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | as of and for the nine months ended September 30, 2023 are as follows: $ in thousands except share amounts As Reported Adjustment As Revised Redeemable common stock - related party $ — $ 85,340 $ 85,340 Common stock, Class S shares, $0.01 par value per share, 500,000,000 shares authorized 9 (9) — Common stock, Class D shares, $0.01 par value per share, 500,000,000 shares authorized 9 (9) — Common stock, Class I shares, $0.01 par value per share, 500,000,000 shares authorized 9 (9) — Common stock, Class E shares, $0.01 par value per share, 500,000,000 shares authorized 9 (9) — Additional paid-in capital 85,313 (85,304) 9 |
Organization and Business Pur_2
Organization and Business Purpose (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) segment | |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |
Number of operating segments | segment | 1 |
Affiliated Entity | Invesco Subscription Agreement | |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |
Purchase commitment, called capital | $ 150 |
Purchase commitment, called capital, additional amount | 150 |
Investor | Invesco Subscription Agreement | |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |
Investment commitment, called capital | $ 200 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Four Commercial Real Estate Loan Borrowers | Revenue Benchmark | Customer Concentration Risk | |
Concentration Risk [Line Items] | |
Concentration risk (in percent) | 10% |
Commercial Real Estate Loan I_3
Commercial Real Estate Loan Investments - Investments in Commercial Real Estate Loans (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Weighted Average Interest Rate | 8.53% | |
Loan Amount | $ 671,406,000 | |
Principal Balance Outstanding | 613,503,000 | |
Fair Value | $ 613,503,000 | $ 0 |
Commercial Loans, Industrial, Phoenix | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Weighted Average Interest Rate | 8.71% | |
Loan Amount | $ 136,000,000 | |
Principal Balance Outstanding | 121,269,000 | |
Fair Value | $ 121,269,000 | |
Commercial Loans, Multifamily, San Jose | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Weighted Average Interest Rate | 8.52% | |
Loan Amount | $ 41,700,000 | |
Principal Balance Outstanding | 41,700,000 | |
Fair Value | $ 41,700,000 | |
Commercial Loans, Multifamily, New York, Maturing August 2026 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Weighted Average Interest Rate | 8.47% | |
Loan Amount | $ 73,600,000 | |
Principal Balance Outstanding | 73,600,000 | |
Fair Value | 73,600,000 | |
Commercial Loans, Multifamily, New York, Maturing August 2026 | Senior Mortgage Loan | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Principal Balance Outstanding | 55,200,000 | |
Commercial Loans, Multifamily, New York, Maturing August 2026 | Mezzanine Note | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Principal Balance Outstanding | $ 18,400,000 | |
Commercial Loans, Los Angeles, Maturing August 2025 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Weighted Average Interest Rate | 8.47% | |
Loan Amount | $ 85,180,000 | |
Principal Balance Outstanding | 80,383,000 | |
Fair Value | $ 80,383,000 | |
Commercial Loans, Industrial, Miami | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Weighted Average Interest Rate | 8.72% | |
Loan Amount | $ 42,676,000 | |
Principal Balance Outstanding | 35,130,000 | |
Fair Value | $ 35,130,000 | |
Commercial Loans, Industrial, Virginia | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Weighted Average Interest Rate | 8.71% | |
Loan Amount | $ 38,300,000 | |
Principal Balance Outstanding | 31,560,000 | |
Fair Value | $ 31,560,000 | |
Commercial Loans, Industrial, Atlanta | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Weighted Average Interest Rate | 8.71% | |
Loan Amount | $ 92,950,000 | |
Principal Balance Outstanding | 78,784,000 | |
Fair Value | $ 78,784,000 | |
Commercial Loans, Multifamily, Dallas | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Weighted Average Interest Rate | 8.17% | |
Loan Amount | $ 70,000,000 | |
Principal Balance Outstanding | 60,077,000 | |
Fair Value | $ 60,077,000 | |
Commercial Loans, Seattle, Maturing December 2026 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Weighted Average Interest Rate | 8.32% | |
Loan Amount | $ 68,500,000 | |
Principal Balance Outstanding | 68,500,000 | |
Fair Value | $ 68,500,000 | |
Commercial Loans, Multifamily, New York, Maturing December 2026 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Weighted Average Interest Rate | 8.36% | |
Loan Amount | $ 22,500,000 | |
Principal Balance Outstanding | 22,500,000 | |
Fair Value | 22,500,000 | |
Commercial Loans, Multifamily, New York, Maturing December 2026 | Senior Mortgage Loan | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Principal Balance Outstanding | 18,000,000 | |
Commercial Loans, Multifamily, New York, Maturing December 2026 | Mezzanine Note | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Principal Balance Outstanding | 4,500,000 | |
Commercial Loans, Cross-Collateralized And Cross-Defaulted | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Principal Balance Outstanding | $ 231,600,000 |
Commercial Real Estate Loan I_4
Commercial Real Estate Loan Investments - Narrative (Details) | 2 Months Ended | 12 Months Ended |
Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) loanInvestment | |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair Value | $ 0 | $ 613,503,000 |
Number of loan investments | loanInvestment | 10 | |
Weighted average loan-to-value ratio (in percent) | 65% | |
Principal Balance Outstanding | $ 613,503,000 | |
Commercial real estate loan interest income | 0 | 17,688,000 |
Commitment fee income | 0 | 3,212,000 |
Related Party | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Commitment and other fee expense | $ 0 | $ 3,212,000 |
Commercial Loans, Cross-Collateralized And Cross-Defaulted | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Weighted average loan-to-value ratio (in percent) | 68% | |
Number of commercial real estate loans | loanInvestment | 3 | |
Principal Balance Outstanding | $ 231,600,000 | |
Percentage of loan portfolio (in percent) | 38% | |
Additional funded commitment | $ 35,600,000 | |
Commercial real estate loan interest income | 8,200,000 | |
Commitment fee income | 1,300,000 | |
Commercial Loans, Cross-Collateralized And Cross-Defaulted | Related Party | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Commitment and other fee expense | $ 1,300,000 | |
Commercial Loans, Cross-Collateralized And Cross-Defaulted | Commercial Real Estate Loan Interest Income Benchmark | Customer Concentration Risk | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Concentration risk (in percent) | 47% | |
Commercial Loans, Cross-Collateralized And Cross-Defaulted | Commitment Fee Income Benchmark | Customer Concentration Risk | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Concentration risk (in percent) | 42% |
Borrowings- Summary of Repurcha
Borrowings- Summary of Repurchase Agreement and Revolving Line of Credit Borrowings (Details) | 12 Months Ended | |
Dec. 31, 2023 USD ($) extensionOption | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | ||
Weighted Average Interest rate (in percent) | 7.64% | |
Maximum Facility Size | $ 784,144,000 | |
Amount Outstanding | 471,861,000 | |
Fair Value | 471,861,000 | |
Available Balance | 312,283,000 | |
Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 457,861,000 | |
Repurchase Agreements | Line of Credit | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest rate (in percent) | 7.63% | |
Maximum Facility Size | $ 684,144,000 | |
Amount Outstanding | 457,861,000 | $ 0 |
Fair Value | 457,861,000 | |
Available Balance | $ 226,283,000 | |
Repurchase Agreements | Repurchase Agreements, Morgan Stanley Bank N.A. | Line of Credit | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest rate (in percent) | 7.86% | |
Maximum Facility Size | $ 250,000,000 | |
Amount Outstanding | 174,209,000 | |
Fair Value | 174,209,000 | |
Available Balance | $ 75,791,000 | |
Extension option (in years) | 1 year | |
Repurchase Agreements | Repurchase Agreements, Citibank N.A. | Line of Credit | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest rate (in percent) | 7.63% | |
Maximum Facility Size | $ 200,000,000 | |
Amount Outstanding | 61,464,000 | |
Fair Value | 61,464,000 | |
Available Balance | $ 138,536,000 | |
Extension option (in years) | 1 year | |
Number of extension options | extensionOption | 2 | |
Repurchase Agreements | Repurchase Agreements, Bank of Montreal | Line of Credit | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest rate (in percent) | 7.44% | |
Maximum Facility Size | $ 234,144,000 | |
Amount Outstanding | 222,188,000 | |
Fair Value | 222,188,000 | |
Available Balance | $ 11,956,000 | |
Extension option (in years) | 1 year | |
Number of extension options | extensionOption | 3 | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 14,000,000 | |
Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest rate (in percent) | 8.26% | |
Maximum Facility Size | $ 100,000,000 | |
Amount Outstanding | 14,000,000 | $ 0 |
Fair Value | 14,000,000 | |
Available Balance | $ 86,000,000 |
Borrowings - Maturities of Outs
Borrowings - Maturities of Outstanding Borrowings (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Maturities of Long-Term Debt [Abstract] | |
2024 | $ 14,000 |
2025 | 457,861 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
Thereafter | 0 |
Total | 471,861 |
Repurchase Agreements | |
Maturities of Long-Term Debt [Abstract] | |
2024 | 0 |
2025 | 457,861 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
Thereafter | 0 |
Total | 457,861 |
Revolving Credit Facility | |
Maturities of Long-Term Debt [Abstract] | |
2024 | 14,000 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
Thereafter | 0 |
Total | $ 14,000 |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) $ in Thousands | 1 Months Ended | 9 Months Ended |
Dec. 31, 2023 USD ($) d yr | Sep. 30, 2023 | |
Line of Credit Facility [Line Items] | ||
Loans pledged as collateral | $ 591,003 | |
Maximum borrowings | 784,144 | |
Available Balance | 312,283 | |
Revolving Credit Facility | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowings | 100,000 | |
Available Balance | 86,000 | |
Unused capacity, commitment fee (in percent) | 0.30% | |
Revolving Credit Facility | Subscription Agreements Credit Facility | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowings | $ 100,000 | |
Threshold days | d | 30 | |
Available Balance | $ 86,000 | |
Revolving Credit Facility | Uncommitted Tranche, Subscription Agreements Credit Facility | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Threshold business days | d | 15 | |
Revolving Credit Facility | Funded Tranche, Subscription Agreements Credit Facility | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Threshold years from issuance | yr | 3 | |
Threshold years from after notice | d | 360 |
Loan Payable - Related Party (D
Loan Payable - Related Party (Details) - USD ($) | 2 Months Ended | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Disclosure [Line Items] | |||
Maximum borrowings | $ 784,144,000 | ||
Proceeds from revolving credit facility | $ 0 | 239,300,000 | |
Interest payable | 0 | $ 1,687,000 | $ 0 |
Weighted Average Interest rate (in percent) | 7.64% | ||
Affiliated Entity | |||
Debt Disclosure [Line Items] | |||
Interest payable | 76 | 76 | |
Revolving Credit Facility | Line of Credit | |||
Debt Disclosure [Line Items] | |||
Maximum borrowings | $ 100,000,000 | ||
Weighted Average Interest rate (in percent) | 8.26% | ||
Revolving Credit Facility | Line of Credit | Affiliated Entity | |||
Debt Disclosure [Line Items] | |||
Maximum borrowings | 30,000 | 30,000 | |
Proceeds from revolving credit facility | 30,000 | ||
Interest payable | $ 76 | $ 76 | |
Weighted Average Interest rate (in percent) | 4.55% | 4.55% | |
Interest expense | $ 649 |
Accounts payable, accrued exp_3
Accounts payable, accrued expenses and other liabilities (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accounts payable, accrued expenses and other liabilities | $ 14,000 | |
Subscriptions paid in advance | 23,566,000 | |
Other liabilities | 398,000 | |
Total | $ 23,978,000 | $ 0 |
Redeemable Common Stock - Rel_3
Redeemable Common Stock - Related Party - Narrative (Details) - Affiliated Entity - Invesco Subscription Agreement $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Temporary Equity [Line Items] | |
Purchase commitment | $ 300,000 |
Purchase commitment, called capital | 150,000 |
Purchase commitment, called capital, additional amount | 150,000 |
Stock repurchase, minimum net asset value threshold to submit | 1,500,000 |
Amount of shares to be held by related party | 200 |
Called capital | 105,300 |
Called Capital, additional amount | $ 44,700 |
Redeemable Common Stock - Rel_4
Redeemable Common Stock - Related Party - Changes In Outstanding Shares Of Redeemable Common Stock (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) shares | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |
Beginning balance | $ 0 |
Beginning balance (in shares) | shares | 0 |
Proceeds from issuance of redeemable common stock | $ 105,340 |
Issuance of redeemable common stock (in shares) | shares | 4,209,925 |
Adjustment to carrying value of redeemable common stock | $ 0 |
Ending balance | $ 105,340 |
Ending balance (in shares) | shares | 4,209,925 |
Class S Redeemable Common Stock | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |
Beginning balance | $ 0 |
Beginning balance (in shares) | shares | 0 |
Proceeds from issuance of redeemable common stock | $ 26,335 |
Issuance of redeemable common stock (in shares) | shares | 1,052,487 |
Adjustment to carrying value of redeemable common stock | $ 0 |
Ending balance | $ 26,335 |
Ending balance (in shares) | shares | 1,052,487 |
Class D Redeemable Common Stock | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |
Beginning balance | $ 0 |
Beginning balance (in shares) | shares | 0 |
Proceeds from issuance of redeemable common stock | $ 26,335 |
Issuance of redeemable common stock (in shares) | shares | 1,052,487 |
Adjustment to carrying value of redeemable common stock | $ 0 |
Ending balance | $ 26,335 |
Ending balance (in shares) | shares | 1,052,487 |
Class I Redeemable Common Stock | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |
Beginning balance | $ 0 |
Beginning balance (in shares) | shares | 0 |
Proceeds from issuance of redeemable common stock | $ 26,335 |
Issuance of redeemable common stock (in shares) | shares | 1,052,487 |
Adjustment to carrying value of redeemable common stock | $ 0 |
Ending balance | $ 26,335 |
Ending balance (in shares) | shares | 1,052,487 |
Class E Redeemable Common Stock | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |
Beginning balance | $ 0 |
Beginning balance (in shares) | shares | 0 |
Proceeds from issuance of redeemable common stock | $ 26,335 |
Issuance of redeemable common stock (in shares) | shares | 1,052,464 |
Adjustment to carrying value of redeemable common stock | $ 0 |
Ending balance | $ 26,335 |
Ending balance (in shares) | shares | 1,052,464 |
Stockholders_ Equity - Narrativ
Stockholders’ Equity - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Nov. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Class of Stock [Line Items] | |||||
Dividends | $ 7,800,000 | $ 0 | |||
Dividends and distributions declared not paid | $ 3,138,000 | $ 3,138,000 | $ 0 | ||
Net asset value threshold, per month (in percent) | 2% | 2% | |||
Net asset value threshold, per quarter (in percent) | 5% | 5% | |||
Early repurchase threshold, period (in years) | 1 year | ||||
Share repurchase plan participation, NAV threshold | $ 1,500,000,000 | ||||
Transaction price threshold (in percent) | 95% | ||||
2023 Equity Incentive Plan | |||||
Class of Stock [Line Items] | |||||
Common stock available for future issuance | 1,097,011 | 1,097,011 | |||
Related Party | |||||
Class of Stock [Line Items] | |||||
Dividends and distributions declared not paid | $ 2,363,000 | $ 2,363,000 | |||
Series A Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Preferred stock, dividend rate (in percent) | 12.50% | ||||
Liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 | |||
Dividend rate, per annum (in dollars per share) | $ 125 | ||||
Call premium above liquidation value (in percent) | 5% | ||||
Class E Common Stock | Restricted stock awards | 2023 Equity Incentive Plan | |||||
Class of Stock [Line Items] | |||||
Grants in period (in shares) | (2,989) | ||||
Private Placement | |||||
Class of Stock [Line Items] | |||||
Sale of stock, number of shares issued in transaction | 117 | 111 | |||
Proceeds from issuance of private placement | $ 108,000 | $ 107,000 | |||
Private Placement | Series A Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Sale of stock, number of shares issued in transaction | 1 | 1 | |||
Preferred stock, dividend rate (in percent) | 12.50% | ||||
Private Placement | Class S Common Stock | |||||
Class of Stock [Line Items] | |||||
Sale of stock, number of shares issued in transaction | 1 | ||||
Private Placement | Class D Common Stock | |||||
Class of Stock [Line Items] | |||||
Sale of stock, number of shares issued in transaction | 1 | ||||
Private Placement | Class I Common Stock | |||||
Class of Stock [Line Items] | |||||
Sale of stock, number of shares issued in transaction | 1 | ||||
Private Placement | Class S-1 Common Stock | |||||
Class of Stock [Line Items] | |||||
Sale of stock, number of shares issued in transaction | 1 | ||||
Class F Subscription Agreement | Class F Common Stock | Investor | |||||
Class of Stock [Line Items] | |||||
Purchase commitment | $ 200,000,000 |
Stockholders_ Equity - Changes
Stockholders’ Equity - Changes in Shares of Common Stock (Details) | 12 Months Ended |
Dec. 31, 2023 shares | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Issuance of redeemable common stock (in shares) | 4,209,925 |
Total Outstanding (in shares) | 5,610,681 |
Common Stock | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Beginning balance (in shares) | 0 |
Issuance of common stock (in shares) | 1,395,267 |
Stock awards (in shares) | 2,989 |
Common stock distribution reinvestment (in shares) | 2,500 |
Ending balance (in shares) | 1,400,756 |
Class S Common Stock | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Issuance of redeemable common stock (in shares) | 1,052,487 |
Total Outstanding (in shares) | 1,052,598 |
Class S Common Stock | Common Stock | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Beginning balance (in shares) | 0 |
Issuance of common stock (in shares) | 111 |
Stock awards (in shares) | 0 |
Common stock distribution reinvestment (in shares) | 0 |
Ending balance (in shares) | 111 |
Class S-1 Common Stock | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Issuance of redeemable common stock (in shares) | 0 |
Total Outstanding (in shares) | 1,054,174 |
Class S-1 Common Stock | Common Stock | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Beginning balance (in shares) | 0 |
Issuance of common stock (in shares) | 1,052,255 |
Stock awards (in shares) | 0 |
Common stock distribution reinvestment (in shares) | 1,919 |
Ending balance (in shares) | 1,054,174 |
Class D Common Stock | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Issuance of redeemable common stock (in shares) | 1,052,487 |
Total Outstanding (in shares) | 1,052,598 |
Class D Common Stock | Common Stock | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Beginning balance (in shares) | 0 |
Issuance of common stock (in shares) | 111 |
Stock awards (in shares) | 0 |
Common stock distribution reinvestment (in shares) | 0 |
Ending balance (in shares) | 111 |
Class I Common Stock | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Issuance of redeemable common stock (in shares) | 1,052,487 |
Total Outstanding (in shares) | 1,383,506 |
Class I Common Stock | Common Stock | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Beginning balance (in shares) | 0 |
Issuance of common stock (in shares) | 330,438 |
Stock awards (in shares) | 0 |
Common stock distribution reinvestment (in shares) | 581 |
Ending balance (in shares) | 331,019 |
Class E Common Stock | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Issuance of redeemable common stock (in shares) | 1,052,464 |
Total Outstanding (in shares) | 1,067,805 |
Class E Common Stock | Common Stock | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Beginning balance (in shares) | 0 |
Issuance of common stock (in shares) | 12,352 |
Stock awards (in shares) | 2,989 |
Common stock distribution reinvestment (in shares) | 0 |
Ending balance (in shares) | 15,341 |
Stockholders_ Equity - Distribu
Stockholders’ Equity - Distributions Declared Per Share (Details) | 3 Months Ended |
Dec. 31, 2023 $ / shares | |
Class S Common Stock | |
Class of Stock [Line Items] | |
Common stock, aggregate distribution declared per share (in dollars per share) | $ 4.7628 |
Common stock, Shareholder servicing fee per share | 0 |
Common stock, Net distributions declared per share | 4.7628 |
Class S-1 Common Stock | |
Class of Stock [Line Items] | |
Common stock, aggregate distribution declared per share (in dollars per share) | 0.8810 |
Common stock, Shareholder servicing fee per share | (0.0539) |
Common stock, Net distributions declared per share | 0.8271 |
Class D Common Stock | |
Class of Stock [Line Items] | |
Common stock, aggregate distribution declared per share (in dollars per share) | 4.7628 |
Common stock, Shareholder servicing fee per share | 0 |
Common stock, Net distributions declared per share | 4.7628 |
Class I Common Stock | |
Class of Stock [Line Items] | |
Common stock, aggregate distribution declared per share (in dollars per share) | 4.7628 |
Common stock, Shareholder servicing fee per share | 0 |
Common stock, Net distributions declared per share | 4.7628 |
Class E Common Stock | |
Class of Stock [Line Items] | |
Common stock, aggregate distribution declared per share (in dollars per share) | 4.7628 |
Common stock, Shareholder servicing fee per share | 0 |
Common stock, Net distributions declared per share | $ 4.7628 |
Stockholders_ Equity - Taxable
Stockholders’ Equity - Taxable Distributions Declared Per Share (Details) | 12 Months Ended |
Dec. 31, 2023 $ / shares | |
Series A Preferred Stock | |
Class of Stock [Line Items] | |
Preferred Stock, Dividends Declared and Taxable in Current Year | $ 5.9000 |
Series A Preferred Stock | Ordinary Dividends | |
Class of Stock [Line Items] | |
Preferred Stock, Dividends Declared and Taxable in Current Year | 5.9000 |
Series A Preferred Stock | Return of Capital | |
Class of Stock [Line Items] | |
Preferred Stock, Dividends Declared and Taxable in Current Year | 0 |
Series A Preferred Stock | Capital Gain Distribution | |
Class of Stock [Line Items] | |
Preferred Stock, Dividends Declared and Taxable in Current Year | 0 |
Class S Common Stock | |
Class of Stock [Line Items] | |
Common Stock, Dividends Declared and Taxable in Current Year | 4.2018 |
Class S Common Stock | Ordinary Dividends | |
Class of Stock [Line Items] | |
Common Stock, Dividends Declared and Taxable in Current Year | 3.2044 |
Class S Common Stock | Return of Capital | |
Class of Stock [Line Items] | |
Common Stock, Dividends Declared and Taxable in Current Year | 0.9974 |
Class S Common Stock | Capital Gain Distribution | |
Class of Stock [Line Items] | |
Common Stock, Dividends Declared and Taxable in Current Year | 0 |
Class S-1 Common Stock | |
Class of Stock [Line Items] | |
Common Stock, Dividends Declared and Taxable in Current Year | 0.3200 |
Class S-1 Common Stock | Ordinary Dividends | |
Class of Stock [Line Items] | |
Common Stock, Dividends Declared and Taxable in Current Year | 0.2440 |
Class S-1 Common Stock | Return of Capital | |
Class of Stock [Line Items] | |
Common Stock, Dividends Declared and Taxable in Current Year | 0.0760 |
Class S-1 Common Stock | Capital Gain Distribution | |
Class of Stock [Line Items] | |
Common Stock, Dividends Declared and Taxable in Current Year | 0 |
Class D Common Stock | |
Class of Stock [Line Items] | |
Common Stock, Dividends Declared and Taxable in Current Year | 4.2018 |
Class D Common Stock | Ordinary Dividends | |
Class of Stock [Line Items] | |
Common Stock, Dividends Declared and Taxable in Current Year | 3.2044 |
Class D Common Stock | Return of Capital | |
Class of Stock [Line Items] | |
Common Stock, Dividends Declared and Taxable in Current Year | 0.9974 |
Class D Common Stock | Capital Gain Distribution | |
Class of Stock [Line Items] | |
Common Stock, Dividends Declared and Taxable in Current Year | 0 |
Class I Common Stock | |
Class of Stock [Line Items] | |
Common Stock, Dividends Declared and Taxable in Current Year | 4.2018 |
Class I Common Stock | Ordinary Dividends | |
Class of Stock [Line Items] | |
Common Stock, Dividends Declared and Taxable in Current Year | 3.2044 |
Class I Common Stock | Return of Capital | |
Class of Stock [Line Items] | |
Common Stock, Dividends Declared and Taxable in Current Year | 0.9974 |
Class I Common Stock | Capital Gain Distribution | |
Class of Stock [Line Items] | |
Common Stock, Dividends Declared and Taxable in Current Year | 0 |
Class E Common Stock | |
Class of Stock [Line Items] | |
Common Stock, Dividends Declared and Taxable in Current Year | 4.2018 |
Class E Common Stock | Ordinary Dividends | |
Class of Stock [Line Items] | |
Common Stock, Dividends Declared and Taxable in Current Year | 3.2044 |
Class E Common Stock | Return of Capital | |
Class of Stock [Line Items] | |
Common Stock, Dividends Declared and Taxable in Current Year | 0.9974 |
Class E Common Stock | Capital Gain Distribution | |
Class of Stock [Line Items] | |
Common Stock, Dividends Declared and Taxable in Current Year | $ 0 |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 2 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Dec. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Common stock, issued (in shares) | 0 | |
Basic Earnings: | ||
Net income (loss) attributable to common stockholders | $ 0 | $ 451 |
Basic Earnings: | ||
Shares available to common stockholders (in shares) | 0 | 1,576,538 |
Effect of dilutive securities: | ||
Restricted stock awards (in shares) | 50 | |
Dilutive Shares (in shares) | 0 | 1,576,588 |
Net income (loss) attributable to common stockholders | ||
Basic (in dollars per share) | $ 0 | $ 0.29 |
Diluted (in dollars per share) | $ 0 | $ 0.29 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Assets and Liabilities Measured At Fair Value On A Recurring Basis (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Commercial real estate loan investments | $ 613,503,000 | $ 0 |
Liabilities: | ||
Revolving credit facility | 471,861,000 | |
Repurchase agreements | 457,861,000 | $ 0 |
Fair Value, Recurring | ||
Assets: | ||
Commercial real estate loan investments | 613,503,000 | |
Liabilities: | ||
Revolving credit facility | 14,000,000 | |
Repurchase agreements | 457,861,000 | |
Total liabilities | 471,861,000 | |
Level 1 | Fair Value, Recurring | ||
Assets: | ||
Commercial real estate loan investments | 0 | |
Liabilities: | ||
Revolving credit facility | 0 | |
Repurchase agreements | 0 | |
Total liabilities | 0 | |
Level 2 | Fair Value, Recurring | ||
Assets: | ||
Commercial real estate loan investments | 0 | |
Liabilities: | ||
Revolving credit facility | 0 | |
Repurchase agreements | 0 | |
Total liabilities | 0 | |
Level 3 | Fair Value, Recurring | ||
Assets: | ||
Commercial real estate loan investments | 613,503,000 | |
Liabilities: | ||
Revolving credit facility | 14,000,000 | |
Repurchase agreements | 457,861,000 | |
Total liabilities | $ 471,861,000 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Dec. 31, 2023 | |
Securities Loaned or Sold under Agreements to Repurchase | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 0 | |
Transfers from Level 2 | 117,140 | |
Borrowings | 340,721 | |
Repayments | 0 | |
Net unrealized gain (loss) | 0 | |
Ending balance | $ 457,861 | 457,861 |
Revolving Credit Facility | Long-Term Debt | Line of Credit | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 0 | |
Proceeds | 14,000 | |
Repayments | 0 | |
Net unrealized gain (loss) | 0 | |
Ending balance | 14,000 | 14,000 |
Commercial Real Estate Loan Investments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 0 | |
Loan originations and fundings | 613,503 | |
Net unrealized gain (loss) | 0 | |
Ending balance | $ 613,503 | $ 613,503 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Significant Unobservable Inputs (Details) - Valuation Technique, Discounted Cash Flow | Dec. 31, 2023 |
Measurement Input, Expected Term | Securities Loaned or Sold under Agreements to Repurchase | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Repurchase agreements, measurement input | 1.48 |
Commercial Real Estate Loan Investments | Measurement Input, Expected Term | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Commercial loans, measurement input | 2.12 |
Weighted Average | Measurement Input, Discount Rate | Securities Loaned or Sold under Agreements to Repurchase | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Repurchase agreements, measurement input | 0.0762 |
Weighted Average | Commercial Real Estate Loan Investments | Measurement Input, Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Commercial loans, measurement input | 0.0852 |
Minimum | Measurement Input, Discount Rate | Securities Loaned or Sold under Agreements to Repurchase | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Repurchase agreements, measurement input | 0.0731 |
Minimum | Commercial Real Estate Loan Investments | Measurement Input, Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Commercial loans, measurement input | 0.0816 |
Maximum | Measurement Input, Discount Rate | Securities Loaned or Sold under Agreements to Repurchase | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Repurchase agreements, measurement input | 0.0786 |
Maximum | Commercial Real Estate Loan Investments | Measurement Input, Discount Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Commercial loans, measurement input | 0.0871 |
Related Party Transactions - Co
Related Party Transactions - Components of Due to Affiliates (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Related Party Transaction [Line Items] | ||
Interest payable | $ 1,687,000 | $ 0 |
Other liabilities | 10,167,000 | 0 |
Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Interest payable | $ 76 | |
Other liabilities | 10,167,000 | |
Affiliated Entity | Adviser commitment fee payable | ||
Related Party Transaction [Line Items] | ||
Other liabilities | 113,000 | |
Affiliated Entity | Advanced organizational costs | ||
Related Party Transaction [Line Items] | ||
Other liabilities | 707,000 | |
Affiliated Entity | Advanced offering costs | ||
Related Party Transaction [Line Items] | ||
Other liabilities | 1,293,000 | |
Affiliated Entity | Advanced debt issuance costs | ||
Related Party Transaction [Line Items] | ||
Other liabilities | 3,727,000 | |
Affiliated Entity | Advanced general and administrative expenses | ||
Related Party Transaction [Line Items] | ||
Other liabilities | 2,993,000 | |
Affiliated Entity | Accrued stockholder servicing fees | ||
Related Party Transaction [Line Items] | ||
Other liabilities | 1,334,000 | |
Affiliated Entity | Prepaid Expenses | ||
Related Party Transaction [Line Items] | ||
Other liabilities | $ 73,000 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) fiscalQuarter | Dec. 31, 2022 USD ($) | |
Related Party Transaction [Line Items] | |||||
Advisory agreement, automatic renewals, term per renewal (in years) | 1 year | ||||
Termination fee, average annual management fee, multiplier | 3 | ||||
Termination fee, term before termination (in months) | 24 months | ||||
Adviser | Subsidiaries | |||||
Related Party Transaction [Line Items] | |||||
Adviser commitment fee, base rate (in percent) | 0.50 | ||||
Adviser commitment fee, base rate, loan origination (in percent) | 0.005 | ||||
Adviser commitment fee payable | $ 113,000 | $ 0 | $ 113,000 | $ 113,000 | $ 0 |
Advance of origination and offering fees, net asset value threshold | 1,000,000,000 | 1,000,000,000 | $ 1,000,000,000 | ||
Organization and offering expenses, reimbursement term (in months) | 52 months | ||||
Advance of operating expense reimbursement, net asset value threshold | 500,000,000 | 500,000,000 | $ 500,000,000 | ||
Reimbursement period, number of consecutive quarters | fiscalQuarter | 4 | ||||
Operating expenses reimbursement, average invested assets (in percent) | 2% | ||||
Operating expenses reimbursement, net income (in percent) | 25% | ||||
Management and service fees, base rate (in percent) | 1% | ||||
Management and service fees, incentive rate (in percent) | 10% | ||||
Support personnel costs | $ 420,000 | $ 0 | |||
Adviser | Subsidiaries | Class F Common Stock | |||||
Related Party Transaction [Line Items] | |||||
Management and service fees, base rate (in percent) | 6% | ||||
Management and service fees, incentive rate (in percent) | 10% | ||||
Adviser | Subsidiaries | Organizational Costs | |||||
Related Party Transaction [Line Items] | |||||
Amounts of transaction | 707,000 | 0 | |||
Adviser | Subsidiaries | Offering Expenses | |||||
Related Party Transaction [Line Items] | |||||
Amounts of transaction | $ 1,300,000 | 0 | |||
Adviser | Subsidiaries | Operating Expenses, Including Debt Issuance Costs | |||||
Related Party Transaction [Line Items] | |||||
Amounts of transaction | 0 | 3,700,000 | |||
Adviser | Subsidiaries | General and Administrative Expense | |||||
Related Party Transaction [Line Items] | |||||
Amounts of transaction | $ 0 | $ 3,000,000 | |||
Dealer Manager | Affiliated Entity | Class S-1 Common Stock | |||||
Related Party Transaction [Line Items] | |||||
Stockholder service fee | $ 15,000 | ||||
Dealer Manager | Affiliated Entity | Class S Common Stock | |||||
Related Party Transaction [Line Items] | |||||
Stockholder service fee | 0 | ||||
Dealer Manager | Affiliated Entity | Class D Common Stock | |||||
Related Party Transaction [Line Items] | |||||
Stockholder service fee | $ 0 | ||||
Dealer Manager | Affiliated Entity | Common Class S And Class D | |||||
Related Party Transaction [Line Items] | |||||
Gross proceeds from sale of shares (in percent) | 8.75% |
Related Party Transactions - Up
Related Party Transactions - Upfront Selling Commissions and Stockholder Servicing Fee (Details) - Dealer Manager - Affiliated Entity | 12 Months Ended |
Dec. 31, 2023 | |
Class S Common Stock | |
Related Party Transaction [Line Items] | |
Maximum Upfront Selling Commissions (% of Transaction Price) | 3.50% |
Stockholder Servicing Fee (% of NAV) | 85% |
Class S-1 Common Stock | |
Related Party Transaction [Line Items] | |
Maximum Upfront Selling Commissions (% of Transaction Price) | 3.50% |
Stockholder Servicing Fee (% of NAV) | 85% |
Class D Common Stock | |
Related Party Transaction [Line Items] | |
Maximum Upfront Selling Commissions (% of Transaction Price) | 1.50% |
Stockholder Servicing Fee (% of NAV) | 25% |
Class I Common Stock | |
Related Party Transaction [Line Items] | |
Maximum Upfront Selling Commissions (% of Transaction Price) | 0% |
Stockholder Servicing Fee (% of NAV) | 0% |
Class E Common Stock | |
Related Party Transaction [Line Items] | |
Maximum Upfront Selling Commissions (% of Transaction Price) | 0% |
Stockholder Servicing Fee (% of NAV) | 0% |
Class F Common Stock | |
Related Party Transaction [Line Items] | |
Maximum Upfront Selling Commissions (% of Transaction Price) | 0% |
Stockholder Servicing Fee (% of NAV) | 0% |
Related Party Transactions - Sh
Related Party Transactions - Shares Purchased By Affiliates (Details) - Affiliated Entity | 12 Months Ended |
Dec. 31, 2023 USD ($) shares | |
Related Party Transaction [Line Items] | |
Total Purchase Price | $ | $ 105,415,000 |
Invesco Realty, Inc. | |
Related Party Transaction [Line Items] | |
Total Purchase Price | $ | 105,340,000 |
Members of our board of directors | |
Related Party Transaction [Line Items] | |
Total Purchase Price | $ | $ 75,000 |
Class S Common Stock | |
Related Party Transaction [Line Items] | |
Shares | 1,052,487 |
Class S Common Stock | Invesco Realty, Inc. | |
Related Party Transaction [Line Items] | |
Shares | 1,052,487 |
Class S Common Stock | Members of our board of directors | |
Related Party Transaction [Line Items] | |
Shares | 0 |
Class S-1 Common Stock | |
Related Party Transaction [Line Items] | |
Shares | 0 |
Class S-1 Common Stock | Invesco Realty, Inc. | |
Related Party Transaction [Line Items] | |
Shares | 0 |
Class S-1 Common Stock | Members of our board of directors | |
Related Party Transaction [Line Items] | |
Shares | 0 |
Class D Common Stock | |
Related Party Transaction [Line Items] | |
Shares | 1,052,487 |
Class D Common Stock | Invesco Realty, Inc. | |
Related Party Transaction [Line Items] | |
Shares | 1,052,487 |
Class D Common Stock | Members of our board of directors | |
Related Party Transaction [Line Items] | |
Shares | 0 |
Class I Common Stock | |
Related Party Transaction [Line Items] | |
Shares | 1,052,487 |
Class I Common Stock | Invesco Realty, Inc. | |
Related Party Transaction [Line Items] | |
Shares | 1,052,487 |
Class I Common Stock | Members of our board of directors | |
Related Party Transaction [Line Items] | |
Shares | 0 |
Class E Common Stock | |
Related Party Transaction [Line Items] | |
Shares | 1,055,453 |
Class E Common Stock | Invesco Realty, Inc. | |
Related Party Transaction [Line Items] | |
Shares | 1,052,464 |
Class E Common Stock | Members of our board of directors | |
Related Party Transaction [Line Items] | |
Shares | 2,989 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) - Unfunded Loan Commitment $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) investment | |
Other Commitments [Line Items] | |
Unfunded loan commitment | $ | $ 57.9 |
Term of related loan (in years) | 1 year 10 months 20 days |
Number of unfunded loan investments | investment | 6 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) - Subsequent Event $ in Millions | Mar. 25, 2024 USD ($) loanInvestment |
Subsequent Event [Line Items] | |
Number of commercial real estate loans originated | loanInvestment | 4 |
Aggregate outstanding principal amount of commercial real estate loans | $ 204.4 |
Total loan amount of commercial real estate loans | $ 283.1 |
Weighted average interest rate of commercial real estate loans (in percent) | 8.37% |
Subsequent Events - Stock Issua
Subsequent Events - Stock Issuance (Details) - Subsequent Event $ in Thousands | 3 Months Ended |
Mar. 25, 2024 USD ($) shares | |
Subsequent Event [Line Items] | |
Shares | shares | 2,212,254 |
Net Proceeds | $ | $ 54,866 |
Class S Common Stock | |
Subsequent Event [Line Items] | |
Shares | shares | 0 |
Net Proceeds | $ | $ 0 |
Class S-1 Common Stock | |
Subsequent Event [Line Items] | |
Shares | shares | 1,489,171 |
Net Proceeds | $ | $ 36,917 |
Class S-1 Common Stock | Investor | |
Subsequent Event [Line Items] | |
Shares | shares | 1,467,311 |
Net Proceeds | $ | $ 36,900 |
Class S-1 Common Stock | Distribution Reinvestment Plan | |
Subsequent Event [Line Items] | |
Shares | shares | 21,860 |
Net Proceeds | $ | $ 550 |
Class D Common Stock | |
Subsequent Event [Line Items] | |
Shares | shares | 0 |
Net Proceeds | $ | $ 0 |
Class I Common Stock | |
Subsequent Event [Line Items] | |
Shares | shares | 664,466 |
Net Proceeds | $ | $ 16,494 |
Class I Common Stock | Investor | |
Subsequent Event [Line Items] | |
Shares | shares | 656,221 |
Net Proceeds | $ | $ 16,500 |
Class I Common Stock | Distribution Reinvestment Plan | |
Subsequent Event [Line Items] | |
Shares | shares | 8,245 |
Net Proceeds | $ | $ 207 |
Class E Common Stock | |
Subsequent Event [Line Items] | |
Shares | shares | 58,617 |
Net Proceeds | $ | $ 1,455 |
Class E Common Stock | Investor | |
Subsequent Event [Line Items] | |
Shares | shares | 57,994 |
Net Proceeds | $ | $ 1,500 |
Class E Common Stock | Distribution Reinvestment Plan | |
Subsequent Event [Line Items] | |
Shares | shares | 623 |
Net Proceeds | $ | $ 16 |
Quarterly Financial Data (una_3
Quarterly Financial Data (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | Oct. 26, 2022 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Redeemable common stock - related party | $ 105,340 | $ 85,340 | $ 0 | $ 0 |
Additional paid-in capital | 32,549 | 9 | 0 | |
Class S Common Stock | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Common stock | $ 0 | $ 0 | $ 0 | |
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 | 0 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |
Class D Common Stock | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Common stock | $ 0 | $ 0 | $ 0 | |
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 | 0 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |
Class I Common Stock | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Common stock | $ 3 | $ 0 | $ 0 | |
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 | 0 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |
Class E Common Stock | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Common stock | $ 0 | $ 0 | $ 0 | |
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 | 0 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |
As Reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Redeemable common stock - related party | $ 0 | |||
Additional paid-in capital | 85,313 | |||
As Reported | Class S Common Stock | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Common stock | 9 | |||
As Reported | Class D Common Stock | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Common stock | 9 | |||
As Reported | Class I Common Stock | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Common stock | 9 | |||
As Reported | Class E Common Stock | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Common stock | 9 | |||
Adjustment | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Redeemable common stock - related party | 85,340 | |||
Additional paid-in capital | (85,304) | |||
Adjustment | Class S Common Stock | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Common stock | (9) | |||
Adjustment | Class D Common Stock | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Common stock | (9) | |||
Adjustment | Class I Common Stock | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Common stock | (9) | |||
Adjustment | Class E Common Stock | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Common stock | $ (9) |
Schedule IV - Mortgage Loans _2
Schedule IV - Mortgage Loans on Real Estate (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Prior Liens | $ 0 | |
Face Amount of Mortgages | 613,503 | |
Carrying Amount of Mortgages(6) | 613,503 | $ 0 |
Principal Amount of Loans Subject to Delinquent Principal or Interest | 0 | |
Tax basis of mortgage loans | $ 615,900 | |
Senior Loan, Industrial / Phoenix | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 8.71% | |
Prior Liens | $ 0 | |
Face Amount of Mortgages | 121,269 | |
Carrying Amount of Mortgages(6) | 121,269 | |
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 | |
Senior Loan, Multifamily / San Jose | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 8.52% | |
Prior Liens | $ 0 | |
Face Amount of Mortgages | 41,700 | |
Carrying Amount of Mortgages(6) | 41,700 | |
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 | |
Senior Loan, Multifamily / New York, Maturing August 2028 | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 8.47% | |
Prior Liens | $ 0 | |
Face Amount of Mortgages | 73,600 | |
Carrying Amount of Mortgages(6) | 73,600 | |
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 | |
Senior Loan, Multifamily / Los Angeles | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 8.47% | |
Prior Liens | $ 0 | |
Face Amount of Mortgages | 80,383 | |
Carrying Amount of Mortgages(6) | 80,383 | |
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 | |
Senior Loan, Industrial / Miami | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 8.72% | |
Prior Liens | $ 0 | |
Face Amount of Mortgages | 35,130 | |
Carrying Amount of Mortgages(6) | 35,130 | |
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 | |
Senior Loan, Industrial / Richmond | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 8.71% | |
Prior Liens | $ 0 | |
Face Amount of Mortgages | 31,560 | |
Carrying Amount of Mortgages(6) | 31,560 | |
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 | |
Senior Loan, Industrial / Atlanta | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 8.71% | |
Prior Liens | $ 0 | |
Face Amount of Mortgages | 78,784 | |
Carrying Amount of Mortgages(6) | 78,784 | |
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 | |
Senior Loan, Multifamily / Dallas | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 8.17% | |
Prior Liens | $ 0 | |
Face Amount of Mortgages | 60,077 | |
Carrying Amount of Mortgages(6) | 60,077 | |
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 | |
Senior Loan, Multifamily / Seattle | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 8.32% | |
Prior Liens | $ 0 | |
Face Amount of Mortgages | 68,500 | |
Carrying Amount of Mortgages(6) | 68,500 | |
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 | |
Senior Loan, Multifamily / New York, Maturing December 2028 | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 8.36% | |
Prior Liens | $ 0 | |
Face Amount of Mortgages | 22,500 | |
Carrying Amount of Mortgages(6) | 22,500 | |
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 |
Schedule IV - Mortgage Loans _3
Schedule IV - Mortgage Loans on Real Estate - Reconciliation Of Carrying Value Of Mortgage Loans on Real Estate (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |
Balance at beginning of period | $ 0 |
Originations and fundings of new loans | 613,503 |
Unrealized gain | 0 |
Collection of principal | 0 |
Unrealized loss | 0 |
Balance at end of period | $ 613,503 |
Uncategorized Items - incref-20
Label | Element | Value |
Common Class S-1 [Member] | Common Stock [Member] | ||
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | $ 11,000 |
Equity, Attributable to Parent | us-gaap_StockholdersEquity | 11,000 |
Equity, Attributable to Parent | us-gaap_StockholdersEquity | 0 |
Equity, Attributable to Parent | us-gaap_StockholdersEquity | 0 |
Common Class S [Member] | Common Stock [Member] | ||
Equity, Attributable to Parent | us-gaap_StockholdersEquity | 0 |
Equity, Attributable to Parent | us-gaap_StockholdersEquity | 0 |
Equity, Attributable to Parent | us-gaap_StockholdersEquity | 0 |
Common Class D [Member] | Common Stock [Member] | ||
Equity, Attributable to Parent | us-gaap_StockholdersEquity | 0 |
Equity, Attributable to Parent | us-gaap_StockholdersEquity | 0 |
Equity, Attributable to Parent | us-gaap_StockholdersEquity | 0 |
Common Class E [Member] | Common Stock [Member] | ||
Equity, Attributable to Parent | us-gaap_StockholdersEquity | 0 |
Equity, Attributable to Parent | us-gaap_StockholdersEquity | 0 |
Equity, Attributable to Parent | us-gaap_StockholdersEquity | 0 |
Common Class F [Member] | Common Stock [Member] | ||
Equity, Attributable to Parent | us-gaap_StockholdersEquity | 0 |
Equity, Attributable to Parent | us-gaap_StockholdersEquity | 0 |
Equity, Attributable to Parent | us-gaap_StockholdersEquity | 0 |
Common Class I [Member] | Common Stock [Member] | ||
Stock Issued During Period, Value, New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | 3,000 |
Equity, Attributable to Parent | us-gaap_StockholdersEquity | 0 |
Equity, Attributable to Parent | us-gaap_StockholdersEquity | 0 |
Equity, Attributable to Parent | us-gaap_StockholdersEquity | $ 3,000 |