(Mark One) | |||||
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | |||||||
(Address of principal executive offices) | (Zip Code) |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||||||||
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||||||||||||||||
☒ | Smaller reporting company | |||||||||||||||||||
Emerging growth company |
Page | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. |
$ in thousands except share amounts | March 31, 2025 | December 31, 2024 | |||||||||
ASSETS | |||||||||||
Commercial real estate loan investments, at fair value (including pledged loans of $ | $ | $ | |||||||||
Cash and cash equivalents | |||||||||||
Restricted cash | |||||||||||
Interest receivable | |||||||||||
Derivative assets, at fair value | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES | |||||||||||
Secured lending agreements, at fair value | $ | $ | |||||||||
Term lending agreement, at fair value | |||||||||||
Interest payable | |||||||||||
Dividends and distributions payable (including $ | |||||||||||
Accounts payable, accrued expenses and other liabilities | |||||||||||
Due to affiliates | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (See Note 12) | |||||||||||
Redeemable common stock - related party (see Note 9) | $ | $ | |||||||||
STOCKHOLDERS’ EQUITY | |||||||||||
Preferred stock, $ | |||||||||||
Common stock, Class S shares, $ | |||||||||||
Common stock, Class S-1 shares, $ | |||||||||||
Common stock, Class D shares, $ | |||||||||||
Common stock, Class D-1 shares, $ | |||||||||||
Common stock, Class I shares, $ | |||||||||||
Common stock, Class E shares, $ | |||||||||||
Common stock, Class F shares, $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive income (loss) | ( | ( | |||||||||
Accumulated deficit | ( | ( | |||||||||
Total stockholders’ equity | |||||||||||
Total liabilities, redeemable common stock and stockholders’ equity | $ | $ |
Three Months Ended March 31, | |||||||||||
$ in thousands except share and per share amounts | 2025 | 2024 | |||||||||
Net Interest Income | |||||||||||
Commercial real estate loan interest income | $ | $ | |||||||||
Other interest income | |||||||||||
Interest expense | ( | ( | |||||||||
Net interest income | |||||||||||
Other Income (Expense) | |||||||||||
Unrealized gain (loss) on loans, net (includes $ | |||||||||||
Unrealized gain (loss) on secured financing facilities, net (includes $ | ( | ( | |||||||||
Gain (loss) on derivative instruments, net | ( | ||||||||||
Gain (loss) on foreign currency transactions, net | |||||||||||
Commitment fee income, net of related party expense of $ | |||||||||||
Other income | |||||||||||
Total other income (expense), net | |||||||||||
Expenses | |||||||||||
Management and performance fees - related party | |||||||||||
Debt issuance and other financing costs related to borrowings, at fair value | |||||||||||
Organizational costs | |||||||||||
General and administrative | |||||||||||
Total expenses | |||||||||||
Net income (loss) | |||||||||||
Dividends to preferred stockholders | ( | ( | |||||||||
Issuance and redemption costs of redeemed preferred stock | ( | ||||||||||
Net income (loss) attributable to common stockholders | $ | $ | |||||||||
Net income (loss) | $ | $ | |||||||||
Currency translation adjustment | |||||||||||
Comprehensive income (loss) | |||||||||||
Dividends to preferred stockholders | ( | ( | |||||||||
Issuance and redemption costs of redeemed preferred stock | ( | ||||||||||
Comprehensive income (loss) attributable to common stockholders | $ | $ | |||||||||
Earnings (loss) per share: | |||||||||||
Net income (loss) attributable to common stockholders | |||||||||||
Basic | $ | $ | |||||||||
Diluted | $ | $ | |||||||||
Weighted average number of shares of common stock | |||||||||||
Basic | |||||||||||
Diluted |
Series A Preferred Stock | Class S Common Stock | Class S-1 Common Stock | Class D Common Stock | Class D-1 Common Stock | Class I Common Stock | Class E Common Stock | Class F Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) | Total Stockholders' Equity | Redeemable Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ in thousands | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2024 | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of common stock, net of offering costs | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of redeemable common stock | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock distribution reinvestment | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock dividends | — | — | — | — | — | — | — | — | — | — | ( | ( | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock dividends | — | — | — | — | — | — | — | — | — | — | ( | ( | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of equity based compensation | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | — | — | — | ( | — | — | ( | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of redeemable common stock | — | — | — | — | — | — | — | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption of preferred stock | ( | — | — | — | — | — | — | — | — | — | ( | ( | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustment to the carrying value of redeemable common stock | — | — | — | — | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2025 | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series A Preferred Stock | Class S Common Stock | Class S-1 Common Stock | Class D Common Stock | Class D-1 Common Stock | Class I Common Stock | Class E Common Stock | Class F Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) | Total Stockholders' Equity | Redeemable Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ in thousands | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2023 | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of common stock, net of offering costs | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock distribution reinvestment | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock dividends | — | — | — | — | — | — | — | — | — | — | ( | ( | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock dividends | — | — | — | — | — | — | — | — | — | — | ( | ( | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of equity based compensation | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2024 | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | ||||||||||
$ in thousands | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | $ | |||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Unrealized (gain) loss on loans, net | ( | ( | |||||||||
Unrealized (gain) loss on secured financing facilities, net | |||||||||||
(Gain) loss on derivative instruments, net | |||||||||||
Debt issuance costs | |||||||||||
Amortization of equity based compensation | |||||||||||
Change in operating assets and liabilities: | |||||||||||
Increase in operating assets | ( | ( | |||||||||
(Increase) decrease in due from affiliates | ( | ||||||||||
(Decrease) increase in operating liabilities | ( | ||||||||||
(Decrease) increase in due to affiliate | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Originations and fundings of commercial real estate loans | ( | ( | |||||||||
Settlement of foreign currency forward contracts, net | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from revolving credit facility | |||||||||||
Repayment of revolving credit facility | ( | ( | |||||||||
Proceeds from secured financing facilities | |||||||||||
Proceeds from issuance of common stock, net of offering costs | |||||||||||
Repurchase of common stock | ( | ||||||||||
Repurchase of redeemable common stock | ( | ||||||||||
Redemption of preferred stock | ( | ||||||||||
Proceeds from subscriptions paid in advance | |||||||||||
Cash paid for debt issuance costs | ( | ( | |||||||||
Payments of dividends | ( | ( | |||||||||
Net cash provided by financing activities | |||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | ( | ||||||||||
Net change in cash, cash equivalents and restricted cash | ( | ( | |||||||||
Cash, cash equivalents and restricted cash, beginning of period | |||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | $ | |||||||||
Supplemental disclosures: | |||||||||||
Interest paid | $ | $ | |||||||||
Non-cash investing and financing activities: | |||||||||||
Dividends and distributions declared not paid | $ | $ | |||||||||
Common stock distribution reinvestment | $ | $ | |||||||||
Issuance of redeemable common stock for payment of management and performance fees | $ | $ | |||||||||
Deferred offering costs due to affiliate | $ | $ | |||||||||
Offering costs due to affiliates | $ | $ | |||||||||
Debt issuance costs due to affiliate | $ | $ | |||||||||
Adjustment to carrying value of redeemable common stock | $ | $ | |||||||||
$ in thousands | ||||||||||||||||||||||||||||||||
Loan Type | Loan Amount(1) | Principal Balance Outstanding | Fair Value | Weighted Average Interest Rate(2) | Weighted Average Life (years)(3) | |||||||||||||||||||||||||||
March 31, 2025 | ||||||||||||||||||||||||||||||||
Senior loans(4) | $ | $ | $ | % | ||||||||||||||||||||||||||||
Mezzanine loans | % | |||||||||||||||||||||||||||||||
Total | $ | $ | $ | % | ||||||||||||||||||||||||||||
December 31, 2024 | ||||||||||||||||||||||||||||||||
Senior loans(4) | $ | $ | $ | % | ||||||||||||||||||||||||||||
Mezzanine loans | % | |||||||||||||||||||||||||||||||
Total | $ | $ | $ | % |
$ in thousands | March 31, 2025 | December 31, 2024 | ||||||||||||||||||||||||
Property Type | Fair Value | Percentage | Fair Value | Percentage | ||||||||||||||||||||||
Multifamily | $ | % | $ | % | ||||||||||||||||||||||
Industrial | % | % | ||||||||||||||||||||||||
Self-storage | % | % | ||||||||||||||||||||||||
Student housing | % | % | ||||||||||||||||||||||||
Total | $ | % | $ | % |
$ in thousands | March 31, 2025 | December 31, 2024 | ||||||||||||||||||||||||
Geographic Location | Fair Value | Percentage | Fair Value | Percentage | ||||||||||||||||||||||
United States: | ||||||||||||||||||||||||||
West | $ | % | $ | % | ||||||||||||||||||||||
South | % | % | ||||||||||||||||||||||||
East | % | % | ||||||||||||||||||||||||
Midwest | % | % | ||||||||||||||||||||||||
Various U.S.(1) | % | % | ||||||||||||||||||||||||
Total | $ | % | $ | % | ||||||||||||||||||||||
Europe: | ||||||||||||||||||||||||||
France(2) | $ | % | $ | % | ||||||||||||||||||||||
Spain(2) | % | % | ||||||||||||||||||||||||
United Kingdom(3) | % | % | ||||||||||||||||||||||||
Total | $ | % | $ | % | ||||||||||||||||||||||
Total | $ | % | $ | % |
March 31, 2025 | December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ in thousands | Current Maturity | Extension Options(1) | Weighted Average Interest Rate(2) | Maximum Facility Size | Available Capacity | Amount Outstanding | Fair Value | Amount Outstanding | Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||
Term Lending Agreement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCREF Lending II | Match-term | Match-term | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Secured Lending Agreements | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Term Financing | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCREF Lending I | Oct 2026 | Oct 2029 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase Agreements | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Morgan Stanley Bank(3) | May 2026 | May 2027 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Citibank | Sep 2026 | Sep 2028 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Barclays(3) | Apr 2027 | Apr 2029 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Wells Fargo | May 2026 | May 2029 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bank of Montreal(3) | Jul 2025 | Jul 2028 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital One(3) | Feb 2027 | Feb 2030 | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total secured financing facilities | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||
Revolving Credit Facility(4) | $ | $ | $ | $ | $ | $ |
$ in thousands | Outstanding Principal | Net Counterparty Exposure | Weighted Average Life (Years)(1) | |||||||||||||||||
March 31, 2025 | ||||||||||||||||||||
Morgan Stanley Bank | $ | $ | ||||||||||||||||||
Citibank | ||||||||||||||||||||
Wells Fargo | ||||||||||||||||||||
Capital One | ||||||||||||||||||||
Total | $ | $ | ||||||||||||||||||
December 31, 2024 | ||||||||||||||||||||
Morgan Stanley Bank | $ | $ | ||||||||||||||||||
Citibank | ||||||||||||||||||||
Barclays | ||||||||||||||||||||
Wells Fargo | ||||||||||||||||||||
Total | $ | $ |
$ in thousands | Secured Lending Agreements(1) | Term Lending Agreement(1) | Total | |||||||||||||||||
Year | ||||||||||||||||||||
2025 (remaining) | $ | $ | $ | |||||||||||||||||
2026 | ||||||||||||||||||||
2027 | ||||||||||||||||||||
2028 | ||||||||||||||||||||
2029 | ||||||||||||||||||||
2030 | ||||||||||||||||||||
Thereafter | ||||||||||||||||||||
Total | $ | $ | $ |
Local Currency | |||||||||||||||||||||||||||||
In thousands | Notional Amount as of December 31, 2024 | Additions | Settlement, Termination, Expiration or Exercise | Notional Amount as of March 31, 2025 | Notional Amount as of March 31, 2025 | ||||||||||||||||||||||||
Buy USD / Sell EUR Forward | € | € | € | ( | € | $ | |||||||||||||||||||||||
Buy USD / Sell GBP Forward | £ | £ | £ | ( | £ | $ |
$ in thousands | Fair Value as of | ||||||||||
March 31, 2025 | December 31, 2024 | ||||||||||
Derivative Assets | $ | $ | |||||||||
Derivative Liabilities | $ | $ |
$ in thousands | Three Months Ended March 31, 2025 | |||||||||||||||||||
Derivatives not designated as hedging instruments | Realized gain (loss) on derivative instruments, net | Unrealized gain (loss), net | Gain (loss) on derivative instruments, net | |||||||||||||||||
Currency Forward Contracts | $ | $ | ( | $ | ( | |||||||||||||||
March 31, 2025 | |||||||||||||||||||||||
Fair Value Measurements Using: | |||||||||||||||||||||||
$ in thousands | Level 1 | Level 2 | Level 3 | Total at Fair Value | |||||||||||||||||||
Assets: | |||||||||||||||||||||||
Commercial real estate loan investments | $ | $ | $ | $ | |||||||||||||||||||
Derivative assets | |||||||||||||||||||||||
Total assets | $ | $ | $ | $ | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Secured lending agreements | $ | $ | $ | $ | |||||||||||||||||||
Term lending agreement | |||||||||||||||||||||||
Total liabilities | $ | $ | $ | $ | |||||||||||||||||||
December 31, 2024 | |||||||||||||||||||||||
Fair Value Measurements Using: | |||||||||||||||||||||||
$ in thousands | Level 1 | Level 2 | Level 3 | Total at Fair Value | |||||||||||||||||||
Assets: | |||||||||||||||||||||||
Commercial real estate loan investments | $ | $ | $ | $ | |||||||||||||||||||
Derivative assets | |||||||||||||||||||||||
Total assets | $ | $ | $ | $ | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Secured lending agreements | $ | $ | $ | $ | |||||||||||||||||||
Term lending agreements | |||||||||||||||||||||||
Total liabilities | $ | $ | $ | $ |
$ in thousands | Three Months Ended March 31, 2025 | ||||
Beginning Balance | $ | ||||
Loan originations and fundings | |||||
Net unrealized gain (loss) | |||||
Foreign currency adjustments(1) | |||||
Ending Balance | $ |
March 31, 2025 | ||||||||||||||||||||||||||||||||
Type | Valuation Technique | Unobservable Input | Weighted Average Rate | Range | Weighted Average Life (years)(1) | |||||||||||||||||||||||||||
Commercial loans | Discounted cash flow | Discount rate |
December 31, 2024 | ||||||||||||||||||||||||||||||||
Type | Valuation Technique | Unobservable Input | Weighted Average Rate | Range | Weighted Average Life (years)(1) | |||||||||||||||||||||||||||
Commercial loans | Discounted cash flow | Discount rate |
$ in thousands | Three Months Ended March 31, 2025 | ||||
Beginning Balance | $ | ||||
Proceeds from revolving credit facility | |||||
Repayment of revolving credit facility | ( | ||||
Net unrealized (gain) loss | |||||
Ending Balance | $ |
Three Months Ended March 31, 2025 | |||||||||||||||||
$ in thousands | Secured Lending Agreements | Term Lending Agreement | Total | ||||||||||||||
Beginning Balance | $ | $ | $ | ||||||||||||||
Proceeds from secured financing facilities | |||||||||||||||||
Net unrealized (gain) loss | ( | ( | |||||||||||||||
Unrealized foreign currency (gain) loss | |||||||||||||||||
Ending Balance | $ | $ | $ |
March 31, 2025 | ||||||||||||||||||||||||||||||||
Type | Valuation Technique | Unobservable Input | Weighted Average Rate | Range | Weighted Average Life (years)(1) | |||||||||||||||||||||||||||
Secured financing facilities | Discounted cash flow | Discount rate |
December 31, 2024 | ||||||||||||||||||||||||||||||||
Type | Valuation Technique | Unobservable Input | Weighted Average Rate | Range | Weighted Average Life (years) | |||||||||||||||||||||||||||
Secured financing facilities | Discounted cash flow | Discount rate |
$ in thousands | March 31, 2025 | December 31, 2024 | ||||||||||||
Accounts payable and accrued expenses | $ | $ | ||||||||||||
Subscriptions paid in advance (1) | ||||||||||||||
Accrued common stock repurchases | ||||||||||||||
Other liabilities | ||||||||||||||
Total | $ | $ |
$ in thousands | March 31, 2025 | December 31, 2024 | |||||||||
Advanced organizational, offering and operating expenses | $ | $ | |||||||||
Reimbursable operating expenses | |||||||||||
Adviser commitment fee payable | |||||||||||
Stockholder servicing fees | |||||||||||
Management fees | |||||||||||
Performance fees | |||||||||||
Total | $ | $ |
$ in thousands | Class S Shares | Class S-1 Shares | Class D Shares | Class D-1 Shares | |||||||||||||||||||
For the period ended March 31, 2025 | $ | $ | $ | $ | |||||||||||||||||||
For the year ended December 31, 2024 | $ | $ | $ | $ | |||||||||||||||||||
Class S Shares | Class S-1 Shares | Class D Shares | Class D -1 Shares | Class I Shares | Class E Shares | Class F Shares | |||||||||||||||||||||||||||||||||||
Maximum Upfront Selling Commissions (% of Transaction Price) | up to | up to | up to | up to | |||||||||||||||||||||||||||||||||||||
Stockholder Servicing Fee (% of NAV) |
March 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
$ in thousands, except share amounts | Class S Shares | Class S-1 Shares | Class D Shares | Class D-1 Shares | Class I Shares | Class E Shares | Class F Shares | Total Purchase Price | |||||||||||||||||||||||||||||||||||||||
Invesco Realty, Inc.(1) | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Invesco Advisers, Inc.(2) | |||||||||||||||||||||||||||||||||||||||||||||||
Members of our board of directors (3) | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ |
December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
$ in thousands, except share amounts | Class S Shares | Class S-1 Shares | Class D Shares | Class D-1 Shares | Class I Shares | Class E Shares | Class F Shares | Total Purchase Price | |||||||||||||||||||||||||||||||||||||||
Invesco Realty, Inc.(1) | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Invesco Advisers, Inc.(2) | |||||||||||||||||||||||||||||||||||||||||||||||
Members of our board of directors (3) | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ |
$ in thousands | Class S Redeemable Common Stock | Class D Redeemable Common Stock | Class I Redeemable Common Stock | Class E Redeemable Common Stock | Total Redeemable Common Stock | ||||||||||||||||||||||||
Balance as of December 31, 2024 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Issuance of redeemable common stock | |||||||||||||||||||||||||||||
Repurchase of redeemable common stock | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Adjustment to carrying value of redeemable common stock | ( | ( | ( | ||||||||||||||||||||||||||
Balance as of March 31, 2025 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
$ in thousands | Class S Redeemable Common Shares | Class D Redeemable Common Shares | Class I Redeemable Common Shares | Class E Redeemable Common Shares | Total Redeemable Common Stock | ||||||||||||||||||||||||
Balance as of December 31, 2023 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Issuance of redeemable common stock | |||||||||||||||||||||||||||||
Adjustment to carrying value of redeemable common stock | |||||||||||||||||||||||||||||
Balance as of March 31, 2024 | $ | $ | $ | $ | $ |
Class S Redeemable Common Shares | Class D Redeemable Common Shares | Class I Redeemable Common Shares | Class E Redeemable Common Shares | Total Redeemable Common Stock | |||||||||||||||||||||||||
Outstanding Shares as of December 31, 2024 | |||||||||||||||||||||||||||||
Issuance of redeemable common stock | |||||||||||||||||||||||||||||
Repurchase of redeemable common stock | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Outstanding Shares as of March 31, 2025 | |||||||||||||||||||||||||||||
Class S Redeemable Common Shares | Class D Redeemable Common Shares | Class I Redeemable Common Shares | Class E Redeemable Common Shares | Total Redeemable Common Stock | |||||||||||||||||||||||||
Outstanding Shares as of December 31, 2023 | |||||||||||||||||||||||||||||
Issuance of redeemable common stock | |||||||||||||||||||||||||||||
Outstanding Shares as of March 31, 2024 |
Three Months Ended March 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
Class S Shares | Class S-1 Shares | Class D Shares | Class D-1 Shares | Class I Shares | Class E Shares | Class F Shares | Total | ||||||||||||||||||||||||||||||||||||||||
Total Outstanding Shares as of December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock to unaffiliated stockholders | |||||||||||||||||||||||||||||||||||||||||||||||
Common stock distribution reinvestment | |||||||||||||||||||||||||||||||||||||||||||||||
Issuance of redeemable common shares(1) | |||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Repurchase of redeemable common stock | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Total Outstanding Shares as of March 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2024 | |||||||||||||||||||||||||||||||||||||||||
Class S Shares | Class S-1 Shares | Class D Shares | Class I Shares | Class E Shares | Class F Shares | Total | |||||||||||||||||||||||||||||||||||
Total Outstanding Shares as of December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||
Issuance of common stock to unaffiliated stockholders | |||||||||||||||||||||||||||||||||||||||||
Common stock distribution reinvestment | |||||||||||||||||||||||||||||||||||||||||
Total Outstanding Shares as of March 31, 2024 | |||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||
Class S Shares | Class S-1 Shares | Class D Shares | Class D-1 Shares(1) | Class I Shares | Class E Shares | Class F Shares | ||||||||||||||||||||||||||||||||||||||
Aggregate distribution declared per share | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Stockholder servicing fee per share | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Net distribution declared per share | $ | $ | $ | $ | $ | $ | $ |
Three Months Ended March 31, 2024 | ||||||||||||||||||||||||||||||||||||||
Class S Shares | Class S-1 Shares | Class D Shares | Class I Shares | Class E Shares | Class F Shares(3) | |||||||||||||||||||||||||||||||||
Aggregate distribution declared per share | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Stockholder servicing fee per share | ( | |||||||||||||||||||||||||||||||||||||
Net distribution declared per share | $ | $ | $ | $ | $ | $ |
For the Three Months Ended | |||||||||||
$ in thousands, except share and per share amounts | March 31, 2025 | March 31, 2024 | |||||||||
Net income (loss) available to common stockholders | $ | $ | |||||||||
Weighted average common shares outstanding | |||||||||||
Effect of dilutive restricted stock awards | |||||||||||
Diluted weighted average common shares outstanding | |||||||||||
Earnings (loss) per share: | |||||||||||
Basic | $ | $ | |||||||||
Diluted | $ | $ |
$ in thousands except share amounts | Shares Issued to Third-Parties | Shares Issued to Affiliates(1)(2) | DRP Shares(3) | |||||||||||||||||
Class S | ||||||||||||||||||||
Class S-1 | ||||||||||||||||||||
Class D | ||||||||||||||||||||
Class D-1 | ||||||||||||||||||||
Class I | ||||||||||||||||||||
Class E | ||||||||||||||||||||
Class F | ||||||||||||||||||||
Total | ||||||||||||||||||||
Total net proceeds(4) | $ | $ | $ |
$ in thousands | March 31, 2025 | December 31, 2024 | March 31, 2024 | ||||||||||||||
Number of investments | 56 | 46 | 14 | ||||||||||||||
Principal balance | $ | 2,785,906 | $ | 2,390,362 | $ | 823,415 | |||||||||||
Fair value | $ | 2,788,480 | $ | 2,391,078 | $ | 824,333 | |||||||||||
Unfunded loan commitments(1) | $ | 337,952 | $ | 298,266 | $ | 131,091 | |||||||||||
Weighted-average interest rate(2) | 7.23 | % | 7.38 | % | 8.46 | % | |||||||||||
Weighted-average maximum maturity (years)(3) | 4.1 | 4.3 | 4.6 | ||||||||||||||
Origination loan-to-value (LTV)(4) | 62 | % | 63 | % | 65 | % |
Three Months Ended | Three Months Ended | ||||||||||
$ in thousands | March 31, 2025 | March 31, 2024 | |||||||||
Loan originations | $ | 368,733 | $ | 204,439 | |||||||
Loan fundings | 15,973 | 5,473 | |||||||||
Loan repayments and sales | — | — | |||||||||
Total net fundings | $ | 384,706 | $ | 209,912 | |||||||
$ 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 | 05/17/2023 | 7.67% | $ | 136,000 | $ | 123,926 | $ | 123,926 | 6/9/2025 | 6/9/2028 | |||||||||||||||||||||||||||||||||||||||
San Jose | Multifamily | 05/31/2023 | 7.47% | 41,700 | 41,700 | 41,700 | 6/9/2026 | 6/9/2028 | ||||||||||||||||||||||||||||||||||||||||||
New York (4) | Multifamily | 07/26/2023 | 7.42% | 73,600 | 73,600 | 73,600 | 8/9/2026 | 8/9/2028 | ||||||||||||||||||||||||||||||||||||||||||
Los Angeles | Multifamily | 08/04/2023 | 7.42% | 85,180 | 81,037 | 81,037 | 8/9/2025 | 8/9/2028 | ||||||||||||||||||||||||||||||||||||||||||
Miami | Industrial | 08/25/2023 | 7.67% | 42,676 | 36,700 | 36,700 | 9/9/2025 | 9/9/2028 | ||||||||||||||||||||||||||||||||||||||||||
Richmond | Industrial | 09/25/2023 | 7.67% | 38,300 | 34,718 | 34,718 | 10/9/2025 | 10/9/2028 | ||||||||||||||||||||||||||||||||||||||||||
Atlanta | Industrial | 11/06/2023 | 7.67% | 92,950 | 84,494 | 84,494 | 11/9/2025 | 11/9/2028 | ||||||||||||||||||||||||||||||||||||||||||
Dallas | Multifamily | 12/07/2023 | 7.12% | 70,000 | 65,224 | 65,280 | 12/9/2026 | 12/9/2028 | ||||||||||||||||||||||||||||||||||||||||||
Seattle | Multifamily | 12/12/2023 | 7.27% | 68,500 | 68,500 | 68,500 | 12/9/2026 | 12/9/2028 | ||||||||||||||||||||||||||||||||||||||||||
New York (5) | Multifamily | 12/21/2023 | 7.32% | 22,500 | 22,500 | 22,500 | 12/9/2026 | 12/9/2028 | ||||||||||||||||||||||||||||||||||||||||||
Houston | Multifamily | 01/24/2024 | 7.32% | 61,500 | 61,000 | 61,000 | 2/9/2027 | 2/9/2029 | ||||||||||||||||||||||||||||||||||||||||||
New York | Multifamily | 02/08/2024 | 7.32% | 120,000 | 76,865 | 76,865 | 2/9/2027 | 2/9/2029 | ||||||||||||||||||||||||||||||||||||||||||
Orange County | Multifamily | 03/05/2024 | 7.47% | 56,600 | 56,520 | 56,520 | 3/9/2027 | 3/9/2029 | ||||||||||||||||||||||||||||||||||||||||||
Los Angeles | Multifamily | 03/28/2024 | 7.32% | 45,000 | 41,535 | 41,538 | 4/9/2026 | 4/9/2029 | ||||||||||||||||||||||||||||||||||||||||||
Los Angeles | Multifamily | 04/12/2024 | 7.37% | 66,050 | 61,125 | 61,163 | 4/9/2027 | 4/9/2029 | ||||||||||||||||||||||||||||||||||||||||||
New York | Multifamily | 05/02/2024 | 7.32% | 150,000 | 40,724 | 40,935 | 5/9/2027 | 5/9/2029 | ||||||||||||||||||||||||||||||||||||||||||
Fort Worth | Multifamily | 05/15/2024 | 7.22% | 22,500 | 21,775 | 21,775 | 6/9/2026 | 6/9/2029 | ||||||||||||||||||||||||||||||||||||||||||
Fort Worth | Multifamily | 05/15/2024 | 7.22% | 23,650 | 23,500 | 23,500 | 6/9/2026 | 6/9/2029 | ||||||||||||||||||||||||||||||||||||||||||
Orange County | Industrial | 05/31/2024 | 7.17% | 47,275 | 43,472 | 43,497 | 6/9/2027 | 6/9/2029 | ||||||||||||||||||||||||||||||||||||||||||
Dallas | Multifamily | 06/07/2024 | 7.12% | 40,740 | 36,797 | 36,873 | 6/9/2027 | 6/9/2029 | ||||||||||||||||||||||||||||||||||||||||||
San Francisco | Multifamily | 06/17/2024 | 6.97% | 33,500 | 30,653 | 30,701 | 7/9/2027 | 7/9/2029 | ||||||||||||||||||||||||||||||||||||||||||
Jacksonville | Multifamily | 06/28/2024 | 7.42% | 40,350 | 38,903 | 38,903 | 7/9/2027 | 7/9/2029 | ||||||||||||||||||||||||||||||||||||||||||
Various U.S. | Self-Storage | 07/10/2024 | 7.52% | 42,448 | 41,439 | 41,469 | 8/9/2027 | 8/9/2029 | ||||||||||||||||||||||||||||||||||||||||||
Houston | Multifamily | 07/24/2024 | 7.22% | 50,750 | 49,750 | 49,786 | 8/9/2026 | 8/9/2029 | ||||||||||||||||||||||||||||||||||||||||||
Tampa | Multifamily | 08/01/2024 | 7.02% | 41,750 | 41,750 | 41,780 | 8/9/2027 | 8/9/2029 | ||||||||||||||||||||||||||||||||||||||||||
Dallas | Multifamily | 08/01/2024 | 7.17% | 44,000 | 44,000 | 44,032 | 8/9/2026 | 8/9/2029 | ||||||||||||||||||||||||||||||||||||||||||
Las Vegas | Industrial | 08/20/2024 | 7.12% | 55,515 | 53,325 | 53,373 | 9/9/2027 | 9/9/2029 | ||||||||||||||||||||||||||||||||||||||||||
Various U.S. | Self-Storage | 08/27/2024 | 7.52% | 11,267 | 10,467 | 10,476 | 9/9/2027 | 9/9/2029 | ||||||||||||||||||||||||||||||||||||||||||
Washington D.C. | Multifamily | 08/28/2024 | 7.07% | 101,000 | 98,611 | 98,796 | 9/9/2027 | 9/9/2029 | ||||||||||||||||||||||||||||||||||||||||||
Various U.S. | Industrial | 08/30/2024 | 7.72% | 83,500 | 77,576 | 77,683 | 9/9/2027 | 9/9/2029 | ||||||||||||||||||||||||||||||||||||||||||
Various U.S. | Industrial | 09/12/2024 | 7.07% | 128,010 | 122,463 | 122,463 | 10/9/2027 | 10/9/2029 | ||||||||||||||||||||||||||||||||||||||||||
Various U.S. | Industrial | 09/13/2024 | 7.07% | 47,881 | 47,881 | 47,881 | 10/9/2027 | 10/9/2029 | ||||||||||||||||||||||||||||||||||||||||||
Barcelona, Spain | Industrial | 09/26/2024 | 5.96% | 99,014 | 99,014 | 99,111 | 10/9/2027 | 10/9/2028 | ||||||||||||||||||||||||||||||||||||||||||
Paris, France | Industrial | 09/26/2024 | 5.96% | 88,463 | 88,463 | 88,550 | 10/9/2027 | 10/9/2028 | ||||||||||||||||||||||||||||||||||||||||||
Bristol, United Kingdom | Industrial | 09/26/2024 | 7.72% | 107,366 | 107,366 | 107,516 | 10/9/2027 | 10/9/2028 | ||||||||||||||||||||||||||||||||||||||||||
Tacoma | Self-Storage | 10/08/2024 | 7.52% | 13,356 | 12,829 | 12,842 | 10/9/2027 | 10/9/2029 | ||||||||||||||||||||||||||||||||||||||||||
Gainesville | Self-Storage | 10/08/2024 | 7.52% | 7,030 | 6,757 | 6,765 | 10/9/2027 | 10/9/2029 | ||||||||||||||||||||||||||||||||||||||||||
Lynchburg | Self-Storage | 10/08/2024 | 7.52% | 14,225 | 13,383 | 13,397 | 10/9/2027 | 10/9/2029 | ||||||||||||||||||||||||||||||||||||||||||
Los Angeles | Multifamily | 10/10/2024 | 7.17% | 22,545 | 20,360 | 20,382 | 10/9/2026 | 10/9/2029 | ||||||||||||||||||||||||||||||||||||||||||
Washington D.C. | Multifamily | 10/15/2024 | 7.02% | 98,900 | 97,570 | 97,786 | 10/9/2027 | 10/9/2029 | ||||||||||||||||||||||||||||||||||||||||||
San Jose | Industrial | 10/31/2024 | 12.08% | 30,000 | 11,475 | 11,475 | 10/31/2027 | 10/31/2029 | ||||||||||||||||||||||||||||||||||||||||||
New York (6) | Multifamily | 12/06/2024 | 7.07% | 61,897 | 61,397 | 61,421 | 12/9/2027 | 12/9/2029 | ||||||||||||||||||||||||||||||||||||||||||
Orange County | Industrial | 12/13/2024 | 7.27% | 67,832 | 54,400 | 54,485 | 1/9/2028 | 1/9/2030 | ||||||||||||||||||||||||||||||||||||||||||
Riverside | Industrial | 12/17/2024 | 7.52% | 58,092 | 47,187 | 47,260 | 1/9/2028 | 1/9/2030 | ||||||||||||||||||||||||||||||||||||||||||
Ft Lauderdale | Self-Storage | 12/18/2024 | 7.52% | 14,251 | 13,096 | 13,117 | 1/9/2028 | 1/9/2030 | ||||||||||||||||||||||||||||||||||||||||||
Chicago | Industrial | 12/20/2024 | 7.27% | 31,802 | 30,415 | 30,463 | 1/9/2028 | 1/9/2030 | ||||||||||||||||||||||||||||||||||||||||||
Austin | Industrial | 01/16/2025 | 7.37% | 26,042 | 22,044 | 22,082 | 2/9/2028 | 2/9/2030 | ||||||||||||||||||||||||||||||||||||||||||
Raleigh | Student Housing | 01/30/2025 | 7.02% | 43,460 | 38,500 | 38,604 | 2/9/2027 | 2/9/2030 | ||||||||||||||||||||||||||||||||||||||||||
Baton Rouge | Student Housing | 02/06/2025 | 7.02% | 29,500 | 22,750 | 22,812 | 2/9/2027 | 2/9/2030 | ||||||||||||||||||||||||||||||||||||||||||
Columbia | Student Housing | 02/06/2025 | 7.02% | 29,750 | 24,780 | 24,847 | 2/9/2027 | 2/9/2030 | ||||||||||||||||||||||||||||||||||||||||||
Portland | Multifamily | 02/13/2025 | 7.02% | 60,165 | 59,483 | 59,556 | 3/9/2027 | 3/9/2030 | ||||||||||||||||||||||||||||||||||||||||||
Austin | Student Housing | 02/19/2025 | 7.02% | 49,943 | 44,800 | 44,921 | 3/9/2027 | 3/9/2030 | ||||||||||||||||||||||||||||||||||||||||||
Eugene | Student Housing | 02/19/2025 | 7.02% | 73,053 | 63,857 | 64,030 | 3/9/2027 | 3/9/2030 | ||||||||||||||||||||||||||||||||||||||||||
Knoxville | Student Housing | 02/20/2025 | 7.02% | 98,290 | 80,500 | 80,644 | 3/9/2027 | 3/9/2030 | ||||||||||||||||||||||||||||||||||||||||||
Minneapolis | Self-Storage | 03/11/2025 | 7.42% | 7,475 | 6,900 | 6,900 | 4/9/2028 | 4/9/2030 | ||||||||||||||||||||||||||||||||||||||||||
Philadelphia | Self-Storage | 03/11/2025 | 7.42% | 6,715 | 6,050 | 6,050 | 4/9/2028 | 4/9/2030 | ||||||||||||||||||||||||||||||||||||||||||
7.23% | $ | 3,123,858 | $ | 2,785,906 | $ | 2,788,480 |
$ in thousands | ||||||||||||||||||||
Counterparty | Loan Count | Fair Value | % of Loan Portfolio | |||||||||||||||||
Borrower A(1) | 3 | 295,177 | 11 | % | ||||||||||||||||
Sponsor A(2) | 7 | 320,596 | 11 | % | ||||||||||||||||
Sponsor B - Facility I(3) | 6 | 251,160 | 9 | % | ||||||||||||||||
Sponsor B - Facility II(3) | 8 | 111,016 | 4 | % | ||||||||||||||||
Sponsor B - Facility III(3) | 5 | 195,214 | 7 | % |
$ in thousands | Current Maturity | Extension Options | Weighted Average Interest Rate | Maximum Facility Size | Amount Outstanding | Available Balance | ||||||||||||||||||||||||||||||||
Term Lending Agreement | ||||||||||||||||||||||||||||||||||||||
INCREF Lending II | Match-term | Match-term | 6.61% | 300,000 | 134,518 | 165,482 | ||||||||||||||||||||||||||||||||
Secured Lending Agreements | ||||||||||||||||||||||||||||||||||||||
Term Financing | ||||||||||||||||||||||||||||||||||||||
INCREF Lending I | Oct 2026 | Oct 2029 | 6.33% | 837,517 | 728,711 | 108,806 | ||||||||||||||||||||||||||||||||
Repurchase Agreements | ||||||||||||||||||||||||||||||||||||||
Morgan Stanley Bank | May 2026 | May 2027 | 6.59% | 500,000 | 345,886 | 154,114 | ||||||||||||||||||||||||||||||||
Citibank | Sep 2026 | Sep 2028 | 5.65% | 500,000 | 284,992 | 215,008 | ||||||||||||||||||||||||||||||||
Barclays | Apr 2027 | Apr 2029 | 6.23% | 500,000 | 199,305 | 300,695 | ||||||||||||||||||||||||||||||||
Wells Fargo | May 2026 | May 2029 | 6.15% | 300,000 | 268,724 | 31,276 | ||||||||||||||||||||||||||||||||
Bank of Montreal | Jul 2025 | Jul 2028 | —% | 25,000 | — | 25,000 | ||||||||||||||||||||||||||||||||
Capital One | Feb 2027 | Feb 2030 | 5.85% | 250,000 | 187,124 | 62,876 | ||||||||||||||||||||||||||||||||
Total secured financing facilities | $ | 3,212,517 | $ | 2,149,260 | $ | 1,063,257 | ||||||||||||||||||||||||||||||||
Revolving Credit Facility | 8.26% | $ | 135,000 | $ | — | $ | 135,000 |
Three Months Ended March 31, | |||||||||||||||||
$ in thousands except per share amount | 2025 | 2024 | $ Change | ||||||||||||||
Net Interest Income | |||||||||||||||||
Commercial real estate loan interest income | $ | 46,841 | $ | 15,140 | $ | 31,701 | |||||||||||
Other interest income | 975 | 241 | 734 | ||||||||||||||
Interest expense | (31,297) | (10,406) | (20,891) | ||||||||||||||
Net interest income | 16,519 | 4,975 | 11,544 | ||||||||||||||
Other Income (Expense) | |||||||||||||||||
Unrealized gain (loss) on loans, net | 12,680 | 918 | 11,762 | ||||||||||||||
Unrealized gain (loss) on secured financing facilities, net | (8,474) | (723) | (7,751) | ||||||||||||||
Gain (loss) on derivative instruments, net | (2,180) | — | (2,180) | ||||||||||||||
Gain (loss) on foreign currency transactions, net | 9 | — | 9 | ||||||||||||||
Commitment fee income, net of related party expense of $2,119 and $1,398 for the three months ended March 31, 2025 and 2024, respectively | 2,119 | 1,398 | 721 | ||||||||||||||
Other income | 289 | 101 | 188 | ||||||||||||||
Total other income (expense), net | 4,443 | 1,694 | 2,749 | ||||||||||||||
Expenses | |||||||||||||||||
Management and performance fees - related party | 1,830 | 350 | 1,480 | ||||||||||||||
Debt issuance and other financing costs related to borrowings, at fair value | 4,916 | 469 | 4,447 | ||||||||||||||
Organizational costs | 2 | 5 | (3) | ||||||||||||||
General and administrative | 2,550 | 1,158 | 1,392 | ||||||||||||||
Total expenses | 9,298 | 1,982 | 7,316 | ||||||||||||||
Net income (loss) | $ | 11,664 | $ | 4,687 | $ | 6,977 | |||||||||||
Dividends to preferred stockholders | (2) | (7) | 5 | ||||||||||||||
Issuance and redemption costs of redeemed preferred stock | (27) | — | (27) | ||||||||||||||
Net income (loss) attributable to common stockholders | $ | 11,635 | $ | 4,680 | $ | 6,955 | |||||||||||
Earnings (loss) per share: | |||||||||||||||||
Net income (loss) attributable to common stockholders | |||||||||||||||||
Basic | $ | 0.43 | $ | 0.65 | $ | (0.22) | |||||||||||
Diluted | $ | 0.43 | $ | 0.65 | $ | (0.22) | |||||||||||
Weighted average number of shares of common stock | |||||||||||||||||
Basic | 27,233,292 | 7,183,194 | 20,050,098 | ||||||||||||||
Diluted | 27,233,368 | 7,183,777 | 20,049,591 |
Three Months Ended March 31, | |||||||||||
$ in thousands | 2025 | 2024 | |||||||||
Average earning assets(1) | $ | 2,663,955 | $ | 740,952 | |||||||
Average earning assets yield(2) | 7.03 | % | 8.17 | % |
Three Months Ended March 31, | |||||||||||
$ in thousands | 2025 | 2024 | |||||||||
Average borrowings(1) | $ | 2,043,460 | $ | 569,169 | |||||||
Maximum borrowings (2) | $ | 2,149,259 | $ | 627,258 | |||||||
Average cost of funds(3) | 6.13 | % | 7.31 | % |
Three Months Ended March 31, | |||||||||||
$ in thousands | 2025 | 2024 | |||||||||
Secured financing facilities interest expense | $ | 31,072 | $ | 10,134 | |||||||
Revolving credit agreement interest expense | 225 | 272 | |||||||||
Total interest expense | $ | 31,297 | $ | 10,406 |
$ in thousands, except share data | March 31, 2025 | December 31, 2024 | ||||||||||||
Commercial real estate loan investments, at fair value | $ | 2,788,480 | 2,391,078 | |||||||||||
Cash and cash equivalents | 65,675 | 80,221 | ||||||||||||
Restricted cash | 28,572 | 19,813 | ||||||||||||
Interest receivable | 13,316 | 12,600 | ||||||||||||
Derivative assets, at fair value | 1,767 | 4,064 | ||||||||||||
Other assets(1) | 727 | 5,780 | ||||||||||||
Unamortized debt costs | 9,608 | 332 | ||||||||||||
Secured lending agreements, at fair value | (2,015,125) | (1,720,350) | ||||||||||||
Term lending agreement, at fair value | (134,518) | (134,518) | ||||||||||||
Interest payable | (7,871) | (8,344) | ||||||||||||
Dividends and distributions payable | (4,257) | (3,765) | ||||||||||||
Accounts payable, accrued expenses and other liabilities | (34,294) | (23,159) | ||||||||||||
Due to affiliates(2) | (6,389) | (8,756) | ||||||||||||
Preferred stock liquidation preference | — | (228) | ||||||||||||
Net asset value | $ | 705,691 | $ | 614,768 | ||||||||||
Number of outstanding shares(3) | 27,808,959 | 24,252,394 |
$ in thousands, except per share data | Class S Shares | Class S-1 Shares | Class D Shares | Class I Shares | Class E Shares | Class F Shares | Total | |||||||||||||||||||||||||||||||||||||
Net asset value | $ | 30,299 | $ | 266,239 | $ | 30,307 | $ | 125,584 | $ | 37,394 | $ | 215,868 | $ | 705,691 | ||||||||||||||||||||||||||||||
Number of outstanding shares(1) | 1,206,852 | 10,563,745 | 1,207,933 | 4,989,536 | 1,461,264 | 8,379,629 | 27,808,959 | |||||||||||||||||||||||||||||||||||||
NAV Per Share(2) | $ | 25.11 | $ | 25.20 | $ | 25.09 | $ | 25.17 | $ | 25.59 | $ | 25.76 |
$ in thousands | March 31, 2025 | December 31, 2024 | ||||||||||||
Stockholders' equity | $ | 546,203 | 435,349 | |||||||||||
Adjustments: | ||||||||||||||
Redeemable common stock - related party | 124,341 | 151,367 | ||||||||||||
Advanced organizational, offering and operating expenses(1) | 13,371 | 14,128 | ||||||||||||
Accrued stockholder servicing fees not currently payable(2) | 12,168 | 8,372 | ||||||||||||
Unamortized debt issuance costs | 9,608 | 5,780 | ||||||||||||
Preferred stock liquidation preference | — | (228) | ||||||||||||
NAV | $ | 705,691 | $ | 614,768 |
Three Months Ended | Three Months Ended | ||||||||||||||||||||||
March 31, 2025 | March 31, 2024 | ||||||||||||||||||||||
$ in thousands | Amount | Percentage | Amount | Percentage | |||||||||||||||||||
Distributions | |||||||||||||||||||||||
Payable in cash | $ | 4,915 | 38 | % | $ | 4,779 | 76 | % | |||||||||||||||
Reinvested in shares | 8,028 | 62 | % | 1,532 | 24 | % | |||||||||||||||||
Total distributions | $ | 12,943 | 100 | % | $ | 6,311 | 100 | % | |||||||||||||||
Sources of Distributions | |||||||||||||||||||||||
Cash flows from operating activities | $ | 11,271 | 87 | % | $ | 6,311 | 100 | % | |||||||||||||||
Offering proceeds | 1,672 | 13 | % | — | — | ||||||||||||||||||
Total sources of distribution | $ | 12,943 | 100 | % | $ | 6,311 | 100 | % | |||||||||||||||
Net cash provided by operating activities | $ | 11,271 | $ | 8,435 |
Declaration Date | Class S Shares | Class S-1 Shares | Class D Shares | Class I Shares | Class E Shares | Class F Shares | ||||||||||||||||||||||||||||||||
January 31, 2025 | $ | 0.1599 | $ | 0.1418 | $ | 0.1600 | $ | 0.1600 | $ | 0.1600 | $ | 0.1600 | ||||||||||||||||||||||||||
February 28, 2025 | 0.1599 | 0.1436 | 0.1600 | 0.1600 | 0.1600 | 0.1600 | ||||||||||||||||||||||||||||||||
February 28, 2025(1) | 0.0200 | 0.0200 | 0.0200 | 0.0200 | 0.0200 | 0.0200 | ||||||||||||||||||||||||||||||||
March 31, 2025 | 0.1599 | 0.1418 | 0.1600 | 0.1600 | 0.1600 | 0.1600 | ||||||||||||||||||||||||||||||||
Total(2) | $ | 0.4997 | $ | 0.4472 | $ | 0.5000 | $ | 0.5000 | $ | 0.5000 | $ | 0.5000 |
Three Months Ended March 31, | |||||||||||
$ in thousands | 2025 | 2024 | |||||||||
Cash flows from operating activities | $ | 11,271 | $ | 8,435 | |||||||
Cash flows from investing activities | (384,589) | (209,912) | |||||||||
Cash flows from financing activities | 367,532 | 195,917 | |||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1) | — | |||||||||
Net change in cash, cash equivalents and restricted cash | $ | (5,787) | $ | (5,560) |
$ in thousands | March 31, 2025 | December 31, 2024 | |||||||||
Cash and cash equivalents | $ | 65,675 | $ | 80,221 | |||||||
Available borrowings under revolving credit agreements | 135,000 | 135,000 | |||||||||
Available borrowings under secured financing facilities | 1,063,257 | 1,008,228 | |||||||||
$ | 1,263,932 | $ | 1,223,449 | ||||||||
$ in thousands | At March 31, 2025 | |||||||||||||
Change in Interest Rates | Projected Increase (Decrease) in Net Interest Income | Percentage Change in Projected Net Interest Income | ||||||||||||
+1.00% | $ | 6,326 | 9.80 | % | ||||||||||
-1.00% | $ | (921) | (1.40) | % |
Counterparty | Loan Count | Fair Value | % of Loan Portfolio | |||||||||||||||||
Borrower A(1) | 3 | 295,177 | 11 | % |
$ in thousands | At March 31, 2025 | |||||||||||||
Change in Market Spreads | Projected Increase (Decrease) in Net Portfolio Value | Percentage Change in Projected Net Portfolio Value | ||||||||||||
+1.00% | $ | (1,509) | (0.24) | % | ||||||||||
-1.00% | $ | 5,479 | 0.86 | % |
March 31, 2025 | ||||||||||||||
Euro | GBP | |||||||||||||
Foreign currency assets | € | 175,602 | £ | 84,439 | ||||||||||
Foreign currency liabilities | (140,098) | (67,323) | ||||||||||||
Foreign currency contracts - notional, net | (38,597) | (18,911) | ||||||||||||
Net exposure to exchange rate fluctuations | € | (3,093) | £ | (1,795) | ||||||||||
Net exposure to exchange rate fluctuations in USD(1) | $ | (3,347) | $ | (2,322) |
$ in thousands, except share and per share amounts | Issuance Date | Number of Shares | Price per Share | Total Value | ||||||||||||||||||||||
Class S-1 | January 16, 2025 | 26,237 | $ | 25.1648 | $ | 660 | ||||||||||||||||||||
Class D | January 16, 2025 | 12 | $ | 25.0440 | $ | — | ||||||||||||||||||||
Class I | January 16, 2025 | 10,737 | $ | 25.1302 | $ | 270 | ||||||||||||||||||||
Class E | January 16, 2025 | 427 | $ | 25.4005 | $ | 11 | ||||||||||||||||||||
Class F | January 16, 2025 | 51,391 | $ | 25.5864 | $ | 1,315 | ||||||||||||||||||||
Class S-1 | February 12, 2025 | 31,892 | $ | 25.1951 | $ | 804 | ||||||||||||||||||||
Class D | February 12, 2025 | 13 | $ | 25.0840 | $ | — | ||||||||||||||||||||
Class I | February 12, 2025 | 11,724 | $ | 25.1623 | $ | 295 | ||||||||||||||||||||
Class E | February 12, 2025 | 428 | $ | 25.4712 | $ | 11 | ||||||||||||||||||||
Class F | February 12, 2025 | 51,589 | $ | 25.6480 | $ | 1,323 | ||||||||||||||||||||
Class S-1 | March 14, 2025 | 39,966 | $ | 25.1612 | $ | 1,005 | ||||||||||||||||||||
Class D | March 14, 2025 | 74 | $ | 25.0527 | $ | 2 | ||||||||||||||||||||
Class I | March 14, 2025 | 14,349 | $ | 25.1292 | $ | 361 | ||||||||||||||||||||
Class E | March 14, 2025 | 515 | $ | 25.4785 | $ | 13 | ||||||||||||||||||||
Class F | March 14, 2025 | 58,391 | $ | 25.6517 | $ | 1,498 |
Month of: | Total Number of Shares Repurchased | Average Price Paid per Share(1) | Total Number of Shares Repurchased as Part of Publicly Announced Plans or Programs(2) | Maximum Number of Shares Pending Repurchase Pursuant to Publicly Announced Plans or Programs (3) | ||||||||||||||||||||||
January 2025 | 14,028 | $ | 24.33 | 14,028 | — | |||||||||||||||||||||
February 2025 | 16,705 | $ | 24.70 | 16,705 | — | |||||||||||||||||||||
March 2025(4) | 1,191,045 | $ | 25.19 | — | — | |||||||||||||||||||||
1,221,778 | $ | 25.17 | 30,733 | — |
Class of Notes | Principal or Notional Amount | Percentage of the Aggregate Notional Amount of all Notes | Ratings (Moody's/Fitch) | Initial Weighted Average Life of Notes(1) | Fully Extended Weighted Average Life of Notes(1) | |||||||||||||||||||||||||||
Class A Notes | $ 706,068,00 | 58.000% | Aaa(sf) / AAAsf | 3.37 years | 3.88 years | |||||||||||||||||||||||||||
Class A-S Notes | $ 129,344,00 | 10.625% | NR / AAAsf | 3.96 years | 4.59 years | |||||||||||||||||||||||||||
Class B Notes | $ 91,302,00 | 7.500% | NR / AA-sf | 4.12 years | 4.73 years | |||||||||||||||||||||||||||
Class C Notes | $ 71,520,00 | 5.875% | NR / A-sf | 4.20 years | 4.84 years | |||||||||||||||||||||||||||
Class D Notes | $ 42,608,00 | 3.500% | NR / BBBsf | 4.41 years | 4.87 years | |||||||||||||||||||||||||||
Class E Notes | $ 22,825,00 | 1.875% | NR / BBB-sf | 4.45 years | 4.87 years | |||||||||||||||||||||||||||
Class F Notes | $ 42,608,00 | 3.500% | NR / BB-sf | 4.45 years | 4.87 years | |||||||||||||||||||||||||||
Class G Notes | $ 30,434,00 | 2.500% | NR / B-sf | 4.45 years | 4.87 years | |||||||||||||||||||||||||||
Income Notes | $ 80,650,32 | 6.625% | NR / NR | N/A | N/A |
Note Protection Test | Ratio | |||||||
Minimum Par Value | 112.16% | |||||||
Minimum Interest Coverage | 120.00% |
Exhibit No. | Description | |||||||
3.1 | ||||||||
3.2 | ||||||||
3.3 | ||||||||
3.4 | ||||||||
3.5 | ||||||||
3.6 | ||||||||
3.7 | ||||||||
3.8 | ||||||||
3.9 | ||||||||
3.10 | ||||||||
3.11 | ||||||||
4.1 | ||||||||
31.1* | ||||||||
31.2* | ||||||||
32.1** | ||||||||
32.2** | ||||||||
101 | The following financial information from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, formatted in iXBRL (inline eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets; (ii) Condensed Consolidated Statements of Comprehensive Income; (iii) Condensed Consolidated Statements of Changes in Equity and Redeemable Equity Instruments; and (iv) Condensed Consolidated Statements of Cash Flows | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
* Filed herewith ** Furnished herewith |
INVESCO COMMERCIAL REAL ESTATE FINANCE TRUST, INC. | ||||||||
May 12, 2025 | By: | /s/ Hubert J. Crouch | ||||||
Hubert J. Crouch | ||||||||
Chief Executive Officer | ||||||||
(Principal Executive Officer) | ||||||||
May 12, 2025 | By: | /s/ Courtney Popelka | ||||||
Courtney Popelka | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial Officer and Principal Accounting Officer) |
Date: May 12, 2025 | ||||||||
/s/ Hubert J. Crouch | ||||||||
Hubert J. Crouch | ||||||||
Chief Executive Officer | ||||||||
(Principal Executive Officer) |
Date: May 12, 2025 | ||||||||
/s/ Courtney Popelka | ||||||||
Courtney Popelka | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial Officer and Principal Accounting Officer) |
/s/ Hubert J. Crouch | |||||
Hubert J. Crouch | |||||
Chief Executive Officer | |||||
(Principal Executive Officer) | |||||
May 12, 2025 |
/s/ Courtney Popelka | |||||
Courtney Popelka | |||||
Chief Financial Officer | |||||
(Principal Financial Officer and Principal Accounting Officer) | |||||
May 12, 2025 |
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2025 |
Mar. 31, 2024 |
|
Unrealized foreign exchange gains | $ 10,800 | |
Unrealized foreign exchange losses | (8,700) | |
Related Party | ||
Commitment and other fee expense | $ 2,119 | $ 1,398 |
Organization and Business Purpose |
3 Months Ended |
---|---|
Mar. 31, 2025 | |
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. 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. 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 qualified as a real estate investment trust (“REIT”) for U.S. federal income tax purposes beginning with the taxable year ended December 31, 2023. We have one operating segment. 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 structured as a perpetual-life REIT and 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, Class S-1, Class D, Class D-1, Class I, and Class E shares sold in our Continuous Offering have different upfront selling commissions, ongoing stockholder servicing fees, management fees and performance fees.
|
Summary of Significant Accounting Policies |
3 Months Ended |
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Mar. 31, 2025 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Consolidation Certain disclosures included in our Annual Report on Form 10-K are not required to be included on an interim basis in our quarterly reports on Form 10-Q. We have condensed or omitted these disclosures. Therefore, this Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2024. Our condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“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. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, consisting of normal recurring accruals, which are necessary for a fair statement of our financial condition and results of operations for the period presented. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in our condensed 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. Significant Accounting Policies There have been no changes to our accounting policies included in Note 2 to the consolidated financial statements of our Annual Report on Form 10-K for the year ended December 31, 2024.
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Commercial Real Estate Loan Investments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Real Estate Loan Investments | Commercial Real Estate Loan Investments The table below summarizes our investments in commercial real estate loans as of March 31, 2025 and December 31, 2024.
(1)Loan amount consists of outstanding principal balance plus unfunded loan commitments. (2)Domestic loans earn interest at the one-month Term Secured Overnight Financing Rate (“SOFR”) plus a spread. Euro denominated loans earn interest at three-month Euro Interbank Offered Rate (“Euribor”) plus a spread. Our loan denominated in British pounds sterling earns interest at three-month Sterling Overnight Index Average (“SONIA”) plus a spread. (3)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)Senior loans include senior mortgages and similar credit quality loans, including related contiguous subordinate loans and accommodation mezzanine loans in connection with the senior mortgage financing. The tables below detail the property type and geographic location of the properties securing our commercial real estate loans as of March 31, 2025 and December 31, 2024.
(1) Various U.S. includes self-storage and industrial portfolios with multiple locations throughout the United States. (2) Our European loans that are collateralized by industrial commercial real estate in France and Spain are denominated in Euros and have a fair value of €81.8 million and €91.6 million, respectively, as of March 31, 2025. (3) Our European loan that is collateralized by industrial commercial real estate in the United Kingdom is denominated in British pounds sterling and has a fair value of £83.1 million as of March 31, 2025. The weighted average loan-to-value ratio, a metric utilized in the fair value measurement of our commercial real estate loan investments, for our loan investments at March 31, 2025 was approximately 65% based on the loan principal amount and the independent property appraisals.
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Borrowings |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | Borrowings The table below summarizes our borrowing arrangements as of March 31, 2025 and December 31, 2024. Our borrowing arrangements include secured lending and term lending agreements (collectively, our “secured financing facilities”) and a revolving credit facility.
(1) Assumes all available extension options are exercised. (2) Represents the weighted average interest rate in effect as of March 31, 2025. (3) Certain extension options for these facilities are subject to lender approval and compliance with certain financial and administrative covenants. (4) Maturity date is aligned with the Company’s ability to call remaining outstanding capital committed under the Invesco Subscription Agreement, as further explained below. Borrowings denominated in U.S. dollars under our secured financing facilities and revolving credit facility bear interest at one-month SOFR plus a spread. Euro denominated borrowings bear interest at three-month Euribor plus a spread, and our British pounds Sterling denominated borrowings bear interest at three-month SONIA plus a spread. Our secured financing facilities are subject to certain non-financial and financial covenants, including liquidity, tangible net worth and leverage covenants. We were in compliance with these covenants as of March 31, 2025. Term Lending Agreement In August 2024, we entered into a $300.0 million Facility Loan Program and Security Agreement with a financial institution (“INCREF Lending II”) that provides asset-based financing on a non-mark-to-market basis with partial recourse to us and match-term to the underlying loans. We have pledged certain commercial real estate loan investments with a fair value of approximately $175.8 million as collateral for INCREF Lending II. We segregate the commercial real estate loans that we have pledged as collateral in our books and records. Our term lending agreement counterparty has the right to resell or repledge the collateral posted but has the obligation to return the pledged collateral upon maturity of the term lending agreement. Secured Lending Agreements In July 2024, we entered into a $837.5 million Master Repurchase Agreement with a financial institution (“INCREF Lending I”) that provides asset-based financing with partial recourse to us and does not provide the lender with margin call rights. The term of the facility matches the term of the underlying collateral up to two years and is subject to three additional one-year extension options that we may exercise upon satisfaction of certain customary conditions and thresholds. We have pledged certain commercial real estate loan investments with a fair value of approximately $917.5 million as collateral for INCREF Lending I. We have also entered into traditional repurchase agreements with six financial institutions, as detailed in the table above. We have pledged certain commercial real estate loan investments with a fair value of approximately $1.7 billion as collateral for these agreements. Certain borrowings under our Citibank repurchase agreement are collateralized by European commercial real estate loans. The borrowings are denominated in Euros and British pound sterling and have a fair value of €138.7 million and £66.5 million, respectively, as of March 31, 2025. 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 were not required to post any margin under our master repurchase agreements as of March 31, 2025 and December 31, 2024. 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. 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. Master repurchase agreements are recourse obligations. Counterparty Exposure We have pledged certain commercial real estate loan investments as collateral for our secured financing facilities. If a secured financing counterparty were to default on its obligation to return the collateral, we would be exposed to potential losses to the extent the fair value of the collateral that we have pledged to the counterparty exceeded the amount loaned to us plus interest due to the counterparty. The following table summarizes our net exposure with those counterparties where the amount at risk exceeded 10.0% of stockholders’ equity as of March 31, 2025 and December 31, 2024.
(1) Assumes all extension options are exercised for borrowing facilities that may be extended at our option, subject to compliance with certain financial and administrative covenants. The following table shows the aggregate amount of maturities of our outstanding borrowings over the next five years and thereafter as of March 31, 2025:
(1) Assumes all extension options are exercised for borrowing facilities that may be extended at our option, subject to compliance with certain financial and administrative covenants. Revolving Credit Facility Our revolving credit facility is secured by uncalled capital subscriptions under the terms of the Invesco Subscription Agreement, as described in Note 9 - “Redeemable Common Stock - Related Party”. 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). 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. The facility is prepayable without penalty. Our revolving credit facility is subject to certain affirmative and negative non-financial and financial covenants, including a limitation on indebtedness. We were in compliance with these covenants as of March 31, 2025.
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Derivatives and Hedging Activities |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives and Hedging Activities | Derivatives and Hedging Activities Currency Forward Contracts We enter into currency forward contracts to help mitigate the impact of changes in foreign currency exchange rates on our investments and financing transactions denominated in currencies other than the U.S. dollar. Despite being economic hedges, we have elected not to treat our foreign currency forwards as hedges for accounting purposes and, therefore, the realized and unrealized gains and losses associated with such instruments are included in gain (loss) on derivative instruments, net in our condensed consolidated statements of comprehensive income. Gain or (loss) on foreign currency transactions, net reflects the net financial impact resulting from changes in exchange rates between the time we enter into foreign currency transactions and when they are settled. The following table summarizes changes in the notional amount of our currency forward contracts during three months ended March 31, 2025:
The table below presents the fair value of our currency forward contracts, as well as their classification on the condensed consolidated balance sheet as of March 31, 2025:
The following table summarizes the effect of currency forward contracts reported in gain (loss) on derivative instruments, net on the condensed consolidated statements of comprehensive income for the three months ended March 31, 2025:
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Fair Value of Financial Instruments |
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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 tables detail our financial instruments measured at fair value on a recurring basis:
Valuation of Commercial Real Estate Loan Investments 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:
(1) The foreign currency adjustment in the table above differs from the amount reflected in the condensed consolidated Statement of Comprehensive Income by approximately $16,000 relating to the translation of certain foreign commercial real estate loans that is included in the currency translation adjustment balance of comprehensive income. The following tables summarize the significant unobservable inputs used in the fair value measurement of our investments in commercial loans:
(1) Based on expected cash flows and potential prepayments. 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 Given the uncertainty of future cash flows and 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 revolving credit facility:
Valuation of Secured Financing Facilities We have entered into secured financing facilities to provide floating rate financing for our commercial real estate loan investments. Our secured financing facilities are carried at fair value based on significant unobservable inputs and are classified as Level 3. The following tables show a reconciliation of the beginning and ending fair value measurements of our secured financing facilities:
The following tables summarize the significant unobservable inputs used in the fair value measurement of our secured financing facilities:
(1) Based on expected cash flows and potential prepayments. 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.
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Accounts Payable, Accrued Expenses and Other Liabilities |
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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 March 31, 2025 and December 31, 2024.
(1) Represents subscriptions received by our transfer agent prior to the date the subscriptions are effective.
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Related Party Transactions |
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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 March 31, 2025 and December 31, 2024.
Advanced Organizational, Offering and Operating Expenses Under the terms of our Amended and Restated Advisory Agreement (“Advisory Agreement”), the Adviser advanced all of our organizational, offering and operating expenses (other than upfront selling commissions and ongoing stockholder servicing fees) incurred through May 31, 2024. Starting in December 2024, we began reimbursing the Adviser for these costs ratably over 52 months. As of March 31, 2025, we owe the Adviser approximately $13.4 million (December 31, 2024: $14.2 million) for the remaining outstanding balance of the expenses advanced by the Adviser under this arrangement. Reimbursable Operating Expenses Operating expenses incurred by the Adviser on our behalf after May 31, 2024 are reimbursed quarterly to the Adviser, and the balance outstanding as of March 31, 2025 and December 31, 2024 is listed in the above table as “Reimbursable operating expenses.” Starting with the quarter ending June 30, 2025, we may not reimburse the Adviser at the end of any fiscal quarter for total operating expenses (as defined in the Advisory Agreement) that 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”) for the four consecutive fiscal quarters then ended. We may reimburse the Adviser for operating 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. Adviser Commitment Fee Payable 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 on a fully-funded basis, as determined by the Adviser at the time of origination. We pay the Adviser 50% (not to exceed 0.5% of the whole loan on a fully funded basis) of any commitment fee charged to borrowers in connection with each new loan 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 condensed consolidated statements of comprehensive income. Stockholder Servicing Fees and Other Selling Commissions Invesco Distributors, Inc. (the “Dealer Manager”) is entitled to receive upfront selling commissions and stockholder servicing fees for Class S, Class S-1, Class D and Class D-1 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 and will waive stockholder servicing fees to the extent a broker-dealer is not eligible to receive it for failure to provide such service. We did not issue any Class D-1 shares as of March 31, 2025. We accrue the full amount of stockholder servicing fees payable as an offering cost at the time each Class S, Class S-1, Class D and Class D-1 share is sold during the Continuous Offering. The following table summarizes stockholder servicing fees paid for the period ended March 31, 2025 and the year ended December 31, 2024.
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:
We will cease paying the stockholder servicing fee with respect to any Class S 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 (7.75% for clients of certain participating broker dealers) 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). At the end of such month, such Class S 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 and Class D-1 shares. Management Fee and Performance Fee Under the terms of our Advisory Agreement, we pay the Adviser a management fee equal to 1.0% per annum of NAV, calculated monthly before giving effect to any accruals for the management fee, stockholder servicing fees, performance fees or any distributions with respect to our Class S, Class S-1, Class D, Class D-1 and Class I shares. We also pay the Adviser a performance fee equal to 10% of our “Performance Fee Income” with respect to our Class S, Class S-1, Class D, Class D-1 and Class I 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. We will not pay the Adviser a management or performance fee with respect to our Class E shares. 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. During the period that the Adviser advanced our organizational, offering and operating expenses, net income for purposes of the performance fee calculation excluded these advanced expenses. After the period that the Adviser advanced our organizational, offering and operating expenses, net income for purposes of the performance fee calculation includes previously advanced expenses that are to be repaid to the Adviser during the period. 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, and the Advisory Agreement does not prohibit the Adviser from entering into economic or other arrangements with other persons. 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. Management fees and performance fees began to accrue on March 1, 2024. Management fees are accrued monthly and paid quarterly in arrears and performance fees are paid annually. During the three months ended March 31, 2025, we incurred management fees of $1.1 million of which $1.1 million is accrued as a component of due to affiliates on our condensed consolidated balance sheets as of March 31, 2025. During the three months ended March 31, 2025, we incurred performance fees of $768,000, of which $768,000 is accrued as a component of due to affiliates on our condensed consolidated balance sheets as of March 31, 2025. During the three months ended March 31, 2025, we issued 29,300 and 81,185 Class E Redeemable Common Stock shares as payment for the management fees and performance fees earned, respectively. The shares issued to the Adviser for payment of the management fee and performance fee were issued at the applicable NAV per share at the end of each quarter for which the fees were earned. The current term of our Advisory Agreement expires on March 31, 2026. 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 of directors 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 $602,000 of costs for support personnel provided by the Adviser for the three months ended March 31, 2025 that are recorded as a component of due to affiliates on our condensed consolidated balance sheets and as general and administrative expenses on our condensed consolidated statements of comprehensive income. During the three months ended March 31, 2024, we incurred $232,000, of costs for support personnel provided by the Adviser. Related Party Share Ownership The tables below summarize the number of shares and the total purchase price of the shares owned by affiliates as of March 31, 2025 and as of December 31, 2024.
(1) Shares issued to Invesco Realty, Inc. are governed by the terms of the Invesco Subscription Agreement and classified as redeemable common shares on our condensed consolidated balance sheets. See Note 9 - “Redeemable Common Stock - Related Party” for further information. (2) Shares issued to Invesco Advisers, Inc. are governed by the terms of our Advisory Agreement and classified as redeemable common shares on our condensed consolidated balance sheets. See Note 9 - “Redeemable Common Stock - Related Party” for further information. (3) Represents shares issued to members of our board of directors, including stock awards under our Share-Based Compensation Plan.
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Redeemable Common Stock - Related Party |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Temporary Equity Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable Common Stock - Related Party | Redeemable Common Stock - Related Party Invesco Realty, Inc. (“Invesco Realty”), an affiliate of Invesco, has committed to purchase up to $300.0 million in shares of our common stock (the “Invesco Subscription Agreement”). We may call $150.0 million in capital under the Invesco Subscription Agreement in one or more closings through March 23, 2028. We may also call up to $150.0 million in additional capital (for a total of $300.0 million) if needed to avoid triggering any concentration limit imposed by a third party in connection with its distribution or placement of our shares or for purposes of repaying indebtedness drawn on the revolving credit facility. As of March 31, 2025, we had called $120.0 million of the total $300.0 million. The remaining uncalled amount serves as collateral for the revolving credit facility. Invesco Realty may not submit its shares for repurchase under the share repurchase plan described in Note 10 - “Stockholders’ Equity” 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 Realty after all requests from unaffiliated stockholders have been fulfilled. We may elect to repurchase all or any portion of the shares acquired by Invesco Realty 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). The Adviser or its affiliate must continue to hold at least $200,000 in shares for so long as Invesco or any affiliate thereof serves as our external adviser. As discussed in Note 8 - “Related Party Transactions”, our management and performance fees are payable in cash or Class E shares at the option of the Adviser. Because the Adviser may elect to have the Company repurchase shares issued as payment for management fees or performance fees, we classify these shares as redeemable common stock. Class E shares issued to the Adviser as payment for management or performance fees are not subject to the repurchase limits of the Company’s share repurchase plan described in Note 10 - “Stockholders’ Equity,” any lockup period applicable to the Adviser, or any reduction penalty for an early repurchase. The Adviser also has the option to exchange Class E shares issued as payment for management or performance fees for Class S, Class S-1, Class D, Class D-1, Class F, or Class I shares. During the three months ended March 31, 2025, we issued 29,300 and 81,185 Class E shares to the Adviser as payment for management fees and performance fees payable as of December 31, 2024, respectively. The following tables summarize the changes in redeemable common stock for the three months ended March 31, 2025 and 2024:
The following tables summarize the changes in our outstanding shares of redeemable common stock shares for the three months ended March 31, 2025 and 2024:
Stapled Unit Offerings of Preferred and Common Stock On January 31, 2025, we redeemed all 111 Stapled Units and 117 New Stapled Units issued and outstanding. 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. Each New Stapled Unit consists of one share of Series A Preferred Stock and one Class S-1 Share. The cash redemption price for each share of stapled common stock was the NAV per share for the applicable share class as of December 31, 2024. Through the redemption of all Stapled Units and New Stapled Units, we redeemed all 228 issued and outstanding shares of our Series A Preferred Stock for approximately $232,000, plus accrued and unpaid dividends. The cash redemption price for each share of Series A Preferred Stock was $1,000. The excess of the consideration transferred over carrying value was accounted for as a deemed dividend and resulted in a reduction of approximately $27,000 in net income (loss) attributable to common stockholders for the three months ended March 31, 2025. Prior to redemption, holders of our Series A Preferred Stock were entitled to receive dividends at an annual rate of 12.5% of the liquidation preference of $1,000 per share or $125.00 per share per annum. Common Stock The table below summarizes changes in our outstanding shares of common stock for the three months ended March 31, 2025 and 2024. We did not issue any Class D-1 Shares as of March 31, 2025.
(1) Consists of shares issued to an Invesco affiliate for the payment of management fees and performance fees that are classified as redeemable common stock. See Note 9 - “Redeemable Common Stock - Related Party”.
Distributions We are generally required to distribute at least 90% our taxable income to our stockholders each year to comply with the REIT provisions of the Internal Revenue Code. Taxable income does not necessarily equal net income as calculated in accordance with U.S. GAAP. For the three months ended March 31, 2025 and 2024, we declared distributions of $12.9 million and $6.3 million, respectively. We accrued $4.3 million for distributions payable, of which $788,000 was accrued for distributions payable to related parties, in our condensed consolidated balance sheet as of March 31, 2025. We accrued $3.8 million for distributions payable, of which $1.0 million was accrued for distributions payable to related parties, in our condensed consolidated balance sheet as of December 31, 2024. The tables below detail the aggregate distributions declared per share for each applicable class of stock for the three months ended March 31, 2025 and March 31, 2024:
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. 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. During the three months ended March 31, 2025, we fulfilled all requests under the share repurchase plan and repurchased 30,733 shares of common stock. For the three months ended March 31, 2024, we did not repurchase any shares under the share repurchase plan. Distribution Reinvestment Plan We have adopted a distribution reinvestment plan whereby common 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 (including fractional shares) under the distribution reinvestment plan is equal to the transaction price at the time the distribution is payable.
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Stockholders’ Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders’ Equity | Redeemable Common Stock - Related Party Invesco Realty, Inc. (“Invesco Realty”), an affiliate of Invesco, has committed to purchase up to $300.0 million in shares of our common stock (the “Invesco Subscription Agreement”). We may call $150.0 million in capital under the Invesco Subscription Agreement in one or more closings through March 23, 2028. We may also call up to $150.0 million in additional capital (for a total of $300.0 million) if needed to avoid triggering any concentration limit imposed by a third party in connection with its distribution or placement of our shares or for purposes of repaying indebtedness drawn on the revolving credit facility. As of March 31, 2025, we had called $120.0 million of the total $300.0 million. The remaining uncalled amount serves as collateral for the revolving credit facility. Invesco Realty may not submit its shares for repurchase under the share repurchase plan described in Note 10 - “Stockholders’ Equity” 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 Realty after all requests from unaffiliated stockholders have been fulfilled. We may elect to repurchase all or any portion of the shares acquired by Invesco Realty 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). The Adviser or its affiliate must continue to hold at least $200,000 in shares for so long as Invesco or any affiliate thereof serves as our external adviser. As discussed in Note 8 - “Related Party Transactions”, our management and performance fees are payable in cash or Class E shares at the option of the Adviser. Because the Adviser may elect to have the Company repurchase shares issued as payment for management fees or performance fees, we classify these shares as redeemable common stock. Class E shares issued to the Adviser as payment for management or performance fees are not subject to the repurchase limits of the Company’s share repurchase plan described in Note 10 - “Stockholders’ Equity,” any lockup period applicable to the Adviser, or any reduction penalty for an early repurchase. The Adviser also has the option to exchange Class E shares issued as payment for management or performance fees for Class S, Class S-1, Class D, Class D-1, Class F, or Class I shares. During the three months ended March 31, 2025, we issued 29,300 and 81,185 Class E shares to the Adviser as payment for management fees and performance fees payable as of December 31, 2024, respectively. The following tables summarize the changes in redeemable common stock for the three months ended March 31, 2025 and 2024:
The following tables summarize the changes in our outstanding shares of redeemable common stock shares for the three months ended March 31, 2025 and 2024:
Stapled Unit Offerings of Preferred and Common Stock On January 31, 2025, we redeemed all 111 Stapled Units and 117 New Stapled Units issued and outstanding. 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. Each New Stapled Unit consists of one share of Series A Preferred Stock and one Class S-1 Share. The cash redemption price for each share of stapled common stock was the NAV per share for the applicable share class as of December 31, 2024. Through the redemption of all Stapled Units and New Stapled Units, we redeemed all 228 issued and outstanding shares of our Series A Preferred Stock for approximately $232,000, plus accrued and unpaid dividends. The cash redemption price for each share of Series A Preferred Stock was $1,000. The excess of the consideration transferred over carrying value was accounted for as a deemed dividend and resulted in a reduction of approximately $27,000 in net income (loss) attributable to common stockholders for the three months ended March 31, 2025. Prior to redemption, holders of our Series A Preferred Stock were entitled to receive dividends at an annual rate of 12.5% of the liquidation preference of $1,000 per share or $125.00 per share per annum. Common Stock The table below summarizes changes in our outstanding shares of common stock for the three months ended March 31, 2025 and 2024. We did not issue any Class D-1 Shares as of March 31, 2025.
(1) Consists of shares issued to an Invesco affiliate for the payment of management fees and performance fees that are classified as redeemable common stock. See Note 9 - “Redeemable Common Stock - Related Party”.
Distributions We are generally required to distribute at least 90% our taxable income to our stockholders each year to comply with the REIT provisions of the Internal Revenue Code. Taxable income does not necessarily equal net income as calculated in accordance with U.S. GAAP. For the three months ended March 31, 2025 and 2024, we declared distributions of $12.9 million and $6.3 million, respectively. We accrued $4.3 million for distributions payable, of which $788,000 was accrued for distributions payable to related parties, in our condensed consolidated balance sheet as of March 31, 2025. We accrued $3.8 million for distributions payable, of which $1.0 million was accrued for distributions payable to related parties, in our condensed consolidated balance sheet as of December 31, 2024. The tables below detail the aggregate distributions declared per share for each applicable class of stock for the three months ended March 31, 2025 and March 31, 2024:
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. 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. During the three months ended March 31, 2025, we fulfilled all requests under the share repurchase plan and repurchased 30,733 shares of common stock. For the three months ended March 31, 2024, we did not repurchase any shares under the share repurchase plan. Distribution Reinvestment Plan We have adopted a distribution reinvestment plan whereby common 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 (including fractional shares) under the distribution reinvestment plan is equal to the transaction price at the time the distribution is payable.
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Earnings per Common Share |
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Earnings per Common Share | Earnings per Common Share Earnings per share for the three months ended March 31, 2025 and 2024 is computed as presented in the table below.
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Commitments and Contingencies |
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Mar. 31, 2025 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments and contingencies may arise in the ordinary course of business. As of March 31, 2025, we had unfunded commitments of $338.0 million for certain 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 1.97 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 March 31, 2025, the Company was not involved in any material legal proceedings.
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Segment Reporting |
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Mar. 31, 2025 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment ReportingWe conduct our business as a single operating segment. Because the accounting policies for the segment are the same as those described in Note 2 “Summary of Significant Accounting Policies,” to the consolidated financial statements of our Annual Report on Form 10-K for the year ended December 31, 2024, total segment net income and total segment assets are equal to total net income and total assets, as reported on our condensed consolidated statements of comprehensive income and condensed consolidated balance sheets, respectively. All revenues for the segment are derived from external customers. |
Subsequent Events |
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Subsequent Events | Subsequent Events Stockholders’ Equity Subsequent to March 31, 2025, we issued the following shares of common stock:
(1)Affiliates include related parties discussed in Note 8 - “Related Party Transactions”. (2)Includes 41,491 Class E shares issued to our Adviser as payment for management fees for total consideration of $1.1 million, which is excluded from Total net proceeds. (3)Represents shares issued under our distribution reinvestment plan. (4)With respect to DRP Shares, Total net proceeds represents total value of shares issued under our distribution reinvestment plan. INCREF 2025-FL1 CLO On May 7, 2025, the Company entered into a collateralized loan obligation (“CLO”), contributing $1.2 billion of commercial real estate loan investments into the CLO and issuing $1.2 billion of Secured Notes and Income Notes. The Company retained $219 million of the CLO, consisting of Classes D, E, F, and G and the Income Notes. The Secured Notes bear interest at Term SOFR plus a spread and will mature at par on the payment date in October 2042, unless redeemed or repaid prior thereto. The proceeds from the issuance, after payment of certain fees and expenses, were primarily used to repay amounts owed to certain repurchase agreement facility lenders, creating $882 million in available warehouse capacity. See Item 5, Other Information, for a summary of the transaction.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
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Mar. 31, 2025 |
Mar. 31, 2024 |
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Pay vs Performance Disclosure | ||
Net income (loss) | $ 11,664 | $ 4,687 |
Insider Trading Arrangements |
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Mar. 31, 2025 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accounting Policies (Policies) |
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Mar. 31, 2025 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation Certain disclosures included in our Annual Report on Form 10-K are not required to be included on an interim basis in our quarterly reports on Form 10-Q. We have condensed or omitted these disclosures. Therefore, this Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2024. Our condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“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. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, consisting of normal recurring accruals, which are necessary for a fair statement of our financial condition and results of operations for the period presented.
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Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in our condensed 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.
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Commercial Real Estate Loan Investments (Tables) |
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Schedule of Investments in Commercial Real Estate Loans | The table below summarizes our investments in commercial real estate loans as of March 31, 2025 and December 31, 2024.
(1)Loan amount consists of outstanding principal balance plus unfunded loan commitments. (2)Domestic loans earn interest at the one-month Term Secured Overnight Financing Rate (“SOFR”) plus a spread. Euro denominated loans earn interest at three-month Euro Interbank Offered Rate (“Euribor”) plus a spread. Our loan denominated in British pounds sterling earns interest at three-month Sterling Overnight Index Average (“SONIA”) plus a spread. (3)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)Senior loans include senior mortgages and similar credit quality loans, including related contiguous subordinate loans and accommodation mezzanine loans in connection with the senior mortgage financing. The tables below detail the property type and geographic location of the properties securing our commercial real estate loans as of March 31, 2025 and December 31, 2024.
(1) Various U.S. includes self-storage and industrial portfolios with multiple locations throughout the United States. (2) Our European loans that are collateralized by industrial commercial real estate in France and Spain are denominated in Euros and have a fair value of €81.8 million and €91.6 million, respectively, as of March 31, 2025. (3) Our European loan that is collateralized by industrial commercial real estate in the United Kingdom is denominated in British pounds sterling and has a fair value of £83.1 million as of March 31, 2025.
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Borrowings (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | The table below summarizes our borrowing arrangements as of March 31, 2025 and December 31, 2024. Our borrowing arrangements include secured lending and term lending agreements (collectively, our “secured financing facilities”) and a revolving credit facility.
(1) Assumes all available extension options are exercised. (2) Represents the weighted average interest rate in effect as of March 31, 2025. (3) Certain extension options for these facilities are subject to lender approval and compliance with certain financial and administrative covenants. (4) Maturity date is aligned with the Company’s ability to call remaining outstanding capital committed under the Invesco Subscription Agreement, as further explained below.
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Schedule of Net Exposure With Counterparties Where Amount At Risk Exceeded 10.0% of Stockholders’ Equity | The following table summarizes our net exposure with those counterparties where the amount at risk exceeded 10.0% of stockholders’ equity as of March 31, 2025 and December 31, 2024.
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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 March 31, 2025:
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Derivatives and Hedging Activities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions | The following table summarizes changes in the notional amount of our currency forward contracts during three months ended March 31, 2025:
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Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The table below presents the fair value of our currency forward contracts, as well as their classification on the condensed consolidated balance sheet as of March 31, 2025:
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Schedule of Gain (Loss) on Derivative Instruments | The following table summarizes the effect of currency forward contracts reported in gain (loss) on derivative instruments, net on the condensed consolidated statements of comprehensive income for the three months ended March 31, 2025:
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Fair Value of Financial Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables detail our financial instruments measured at fair value on a recurring basis:
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Schedule 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:
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Schedule of Fair Value Measurement Inputs and Valuation Techniques | The following tables summarize the significant unobservable inputs used in the fair value measurement of our investments in commercial loans:
(1) Based on expected cash flows and potential prepayments. The following tables summarize the significant unobservable inputs used in the fair value measurement of our secured financing facilities:
(1) Based on expected cash flows and potential prepayments.
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Schedule of 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 revolving credit facility: The following tables show a reconciliation of the beginning and ending fair value measurements of our secured
financing facilities:
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Accounts Payable, Accrued Expenses and Other Liabilities (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 March 31, 2025 and December 31, 2024.
(1) Represents subscriptions received by our transfer agent prior to the date the subscriptions are effective.
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Related Party Transactions (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Due to Affiliates | The following table details the components of due to affiliates as of March 31, 2025 and December 31, 2024.
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:
The tables below summarize the number of shares and the total purchase price of the shares owned by affiliates as of March 31, 2025 and as of December 31, 2024.
(1) Shares issued to Invesco Realty, Inc. are governed by the terms of the Invesco Subscription Agreement and classified as redeemable common shares on our condensed consolidated balance sheets. See Note 9 - “Redeemable Common Stock - Related Party” for further information. (2) Shares issued to Invesco Advisers, Inc. are governed by the terms of our Advisory Agreement and classified as redeemable common shares on our condensed consolidated balance sheets. See Note 9 - “Redeemable Common Stock - Related Party” for further information. (3) Represents shares issued to members of our board of directors, including stock awards under our Share-Based Compensation Plan.
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Redeemable Common Stock - Related Party (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Temporary Equity Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock by Class | The following tables summarize the changes in redeemable common stock for the three months ended March 31, 2025 and 2024:
The following tables summarize the changes in our outstanding shares of redeemable common stock shares for the three months ended March 31, 2025 and 2024:
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Stockholders’ Equity (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Common Stock Outstanding Roll Forward | The table below summarizes changes in our outstanding shares of common stock for the three months ended March 31, 2025 and 2024. We did not issue any Class D-1 Shares as of March 31, 2025.
(1) Consists of shares issued to an Invesco affiliate for the payment of management fees and performance fees that are classified as redeemable common stock. See Note 9 - “Redeemable Common Stock - Related Party”.
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Schedule of Dividends Declared | The tables below detail the aggregate distributions declared per share for each applicable class of stock for the three months ended March 31, 2025 and March 31, 2024:
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Earnings per Common Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | Earnings per share for the three months ended March 31, 2025 and 2024 is computed as presented in the table below.
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Subsequent Events (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Subsequent Events [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stockholders Equity | Subsequent to March 31, 2025, we issued the following shares of common stock:
(1)Affiliates include related parties discussed in Note 8 - “Related Party Transactions”. (2)Includes 41,491 Class E shares issued to our Adviser as payment for management fees for total consideration of $1.1 million, which is excluded from Total net proceeds. (3)Represents shares issued under our distribution reinvestment plan. (4)With respect to DRP Shares, Total net proceeds represents total value of shares issued under our distribution reinvestment plan.
|
Organization and Business Purpose (Details) |
3 Months Ended |
---|---|
Mar. 31, 2025
segment
| |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 1 |
Commercial Real Estate Loan Investments - Investments in Commercial Real Estate Loans (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2025 |
Dec. 31, 2024 |
|
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Loan Amount | $ 3,123,858 | $ 2,688,628 |
Principal Balance Outstanding | 2,785,906 | 2,390,362 |
Fair Value | $ 2,788,480 | $ 2,391,078 |
Weighted Average Interest Rate | 7.23% | 7.38% |
Weighted Average Life (years) | 4 years 1 month 20 days | 4 years 3 months 7 days |
Senior loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Loan Amount | $ 3,093,858 | $ 2,658,628 |
Principal Balance Outstanding | 2,774,431 | 2,385,124 |
Fair Value | $ 2,777,005 | $ 2,385,840 |
Weighted Average Interest Rate | 7.21% | 7.37% |
Weighted Average Life (years) | 4 years 1 month 20 days | 4 years 3 months 3 days |
Mezzanine loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Loan Amount | $ 30,000 | $ 30,000 |
Principal Balance Outstanding | 11,475 | 5,238 |
Fair Value | $ 11,475 | $ 5,238 |
Weighted Average Interest Rate | 12.08% | 12.23% |
Weighted Average Life (years) | 4 years 7 months 2 days | 4 years 10 months 2 days |
Commercial Real Estate Loan Investments - Narrative (Details) |
Mar. 31, 2025 |
---|---|
Fair Value Disclosures [Abstract] | |
Weighted average loan-to-value ratio | 65.00% |
Borrowings - Maturities of Outstanding Borrowings (Details) $ in Thousands |
Mar. 31, 2025
USD ($)
|
---|---|
Debt Instrument [Line Items] | |
2025 (remaining) | $ 0 |
2026 | 0 |
2027 | 345,886 |
2028 | 284,992 |
2029 | 1,320,922 |
2030 | 197,460 |
Thereafter | 0 |
Total | 2,149,260 |
Secured Debt | Secured Lending Agreements | |
Debt Instrument [Line Items] | |
2025 (remaining) | 0 |
2026 | 0 |
2027 | 345,886 |
2028 | 284,992 |
2029 | 1,196,740 |
2030 | 187,124 |
Thereafter | 0 |
Total | 2,014,742 |
Secured Debt | Term Lending Agreement | |
Debt Instrument [Line Items] | |
2025 (remaining) | 0 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
2029 | 124,182 |
2030 | 10,336 |
Thereafter | 0 |
Total | $ 134,518 |
Derivatives and Hedging Activities - Changes in the Notional Amount of our Currency Forward Contracts (Details) - 3 months ended Mar. 31, 2025 - Foreign Exchange Forward - Not Designated as Hedging Instrument € in Thousands, £ in Thousands, $ in Thousands |
EUR (€) |
USD ($) |
GBP (£) |
---|---|---|---|
Derivative, Notional Amount [Roll Forward] | |||
Beginning balance | € 39,474 | £ 19,417 | |
Additions | 0 | 0 | |
Settlement, Termination, Expiration or Exercise | (877) | (506) | |
Ending balance | € 38,597 | £ 18,911 | |
Euro Member Countries, Euro | |||
Derivative, Notional Amount [Roll Forward] | |||
Ending balance | $ 43,821 | ||
United Kingdom, Pounds | |||
Derivative, Notional Amount [Roll Forward] | |||
Ending balance | $ 24,978 |
Derivatives and Hedging Activities - Fair Value of our Currency Forward Contracts (Details) - USD ($) $ in Thousands |
Mar. 31, 2025 |
Dec. 31, 2024 |
---|---|---|
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative assets | $ 1,767 | $ 4,064 |
Foreign Exchange Forward | Not Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative assets | 1,767 | 4,064 |
Derivative liabilities | $ 0 | $ 0 |
Derivatives and Hedging Activities - Effect of Currency Forward Contracts Reported in Gain (Loss) on Derivative Instruments (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2025 |
Mar. 31, 2024 |
|
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Unrealized gain (loss), net | $ (2,180) | $ 0 |
Gain (loss) on derivative instruments, net | (2,180) | $ 0 |
Foreign Exchange Forward | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Realized gain (loss) on derivative instruments, net | 117 | |
Unrealized gain (loss), net | (2,297) | |
Gain (loss) on derivative instruments, net | $ (2,180) |
Accounts Payable, Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2025 |
Dec. 31, 2024 |
---|---|---|
Payables and Accruals [Abstract] | ||
Accounts payable and accrued expenses | $ 4,864 | $ 2,073 |
Subscriptions paid in advance | 28,495 | 19,784 |
Accrued common stock repurchases | 0 | 55 |
Other liabilities | 935 | 1,247 |
Total | $ 34,294 | $ 23,159 |
Related Party Transactions - Stockholder Servicing Fees (Details) - Dealer Manager - Affiliated Entity - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2025 |
Dec. 31, 2024 |
|
Class S Common Stock | ||
Related Party Transaction [Line Items] | ||
Stockholder service fee | $ 0 | $ 1 |
Class S-1 Common Stock | ||
Related Party Transaction [Line Items] | ||
Stockholder service fee | 435 | 761 |
Class D Common Stock | ||
Related Party Transaction [Line Items] | ||
Stockholder service fee | 0 | 0 |
Class D-1 Common Stock | ||
Related Party Transaction [Line Items] | ||
Stockholder service fee | $ 0 | $ 0 |
Redeemable Common Stock - Related Party - Narrative (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2025
USD ($)
shares
| |
Affiliated Entity | Invesco Subscription Agreement | |
Temporary Equity [Line Items] | |
Maximum purchase commitment | $ 300,000 |
Capital callable under purchase commitment | 150,000 |
Additional capital callable under purchase commitment | 150,000 |
Called capital under purchase commitment | 120,000 |
Stock repurchase, minimum net asset value threshold to submit | 1,500,000 |
Amount of shares to be held by related party | $ 200 |
Subsidiaries | Adviser | Class E Redeemable Common Stock | |
Temporary Equity [Line Items] | |
Issuance of redeemable common stock, performance fees (in shares) | shares | 81,185 |
Issuance of redeemable common stock, management fees (in shares) | shares | 29,300 |
Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2025 |
Mar. 31, 2024 |
|
Earnings Per Share [Abstract] | ||
Net income (loss) available to common stockholders | $ 11,635 | $ 4,680 |
Weighted average common shares outstanding (in shares) | 27,233,292 | 7,183,194 |
Effect of dilutive restricted stock awards (in shares) | 76 | 583 |
Diluted weighted average common shares outstanding (in shares) | 27,233,368 | 7,183,777 |
Earnings (loss) per share: | ||
Basic (in dollars per share) | $ 0.43 | $ 0.65 |
Diluted (in dollars per share) | $ 0.43 | $ 0.65 |
Commitments and Contingencies (Details) - Unfunded Loan Commitment $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2025
USD ($)
| |
Other Commitments [Line Items] | |
Unfunded loan commitment | $ 338.0 |
Term of related loan (in years) | 1 year 11 months 19 days |
Subsequent Events - Narrative (Details) - USD ($) $ in Thousands |
May 07, 2025 |
Mar. 31, 2025 |
Dec. 31, 2024 |
---|---|---|---|
Subsequent Event [Line Items] | |||
Loan Amount | $ 3,123,858 | $ 2,688,628 | |
Subsequent Event | Collateralized Loan Obligations | |||
Subsequent Event [Line Items] | |||
Issuance of notes | $ 1,200,000 | ||
Retention | 219,000 | ||
Repayments | 882,000 | ||
Asset Pledged as Collateral | Subsequent Event | Collateralized Loan Obligations | |||
Subsequent Event [Line Items] | |||
Loan Amount | $ 1,200,000 |
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