(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 | ||||||
N/A | N/A | N/A |
Large accelerated filer | ¨ | Accelerated filer | ¨ | ||||||||
T | Smaller reporting company | ||||||||||
Emerging growth company |
Page | |||||||||||
PART I—FINANCIAL INFORMATION | |||||||||||
ITEM 1. | |||||||||||
ITEM 2. | |||||||||||
ITEM 3. | |||||||||||
ITEM 4. | |||||||||||
PART II—OTHER INFORMATION | |||||||||||
ITEM 1. | |||||||||||
ITEM 1A. | |||||||||||
ITEM 2. | |||||||||||
ITEM 3. | |||||||||||
ITEM 4. | |||||||||||
ITEM 5. | |||||||||||
ITEM 6. | |||||||||||
September 30, 2023 (Unaudited) | December 31, 2022 | ||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Loans receivable, held-for-investment, net of credit loss allowances of $ | |||||||||||
Mortgage-backed securities held-to-maturity, net of credit loss allowances of $ | |||||||||||
Mortgage-backed securities, at fair value, credit loss allowances of $ | |||||||||||
Reimbursement due from sponsor | |||||||||||
Investment in real estate, net | |||||||||||
Receivable for investments sold and repaid | |||||||||||
Interest receivable | |||||||||||
Other assets | |||||||||||
Mortgage loans held in securitization trusts, at fair value | |||||||||||
Total assets(1) | $ | $ | |||||||||
Liabilities | |||||||||||
Collateralized loan obligations, net | $ | $ | |||||||||
Repurchase agreements payable, net | |||||||||||
Credit facilities payable, net | |||||||||||
Mortgage note payable, net | |||||||||||
Due to related party | |||||||||||
Interest payable | |||||||||||
Payable for shares repurchased | |||||||||||
Other liabilities | |||||||||||
Mortgage obligations issued by securitization trusts, at fair value | |||||||||||
Total liabilities(1) | |||||||||||
Commitments and contingencies (See Note 11) | |||||||||||
Stockholders' equity | |||||||||||
Preferred stock, $ | |||||||||||
Class F common stock, $ | |||||||||||
Class Y common stock, $ | |||||||||||
Class T common stock, $ | |||||||||||
Class S common stock, $ | |||||||||||
Class D common stock, $ | |||||||||||
Class M common stock, $ | |||||||||||
Class I common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive income (loss) | ( | ( | |||||||||
Retained earnings (accumulated deficit) | ( | ||||||||||
Total stockholders' equity | |||||||||||
Total liabilities and stockholders' equity | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Net interest income | ||||||||||||||||||||||||||
Interest income | $ | $ | $ | $ | ||||||||||||||||||||||
Less: Interest expense | ( | ( | ( | ( | ||||||||||||||||||||||
Interest income on mortgage loans held in securitization trusts | ||||||||||||||||||||||||||
Less: Interest expense on mortgage obligations issued by securitization trusts | ( | ( | ||||||||||||||||||||||||
Net interest income | ||||||||||||||||||||||||||
Other expenses | ||||||||||||||||||||||||||
Management fee | ||||||||||||||||||||||||||
Performance fee | ||||||||||||||||||||||||||
General and administrative expenses | ||||||||||||||||||||||||||
Less: Expense limitation | ( | |||||||||||||||||||||||||
Add: Expense recoupment to sponsor | ||||||||||||||||||||||||||
Net other expenses | ||||||||||||||||||||||||||
Other income (loss) | ||||||||||||||||||||||||||
(Increase) decrease in current expected credit loss reserve | ( | |||||||||||||||||||||||||
Income (loss) from rental operations, net | ( | ( | ( | ( | ||||||||||||||||||||||
Net change in unrealized gain on interest rate cap | ( | ( | ||||||||||||||||||||||||
Net realized gain (loss) on extinguishment of debt | ||||||||||||||||||||||||||
Net change in unrealized gain (loss) on mortgage-backed securities, fair value option | ||||||||||||||||||||||||||
Unrealized gain (loss) on mortgage loans and obligations held in securitization trusts, net | ( | ( | ||||||||||||||||||||||||
Total other income (loss) | ( | ( | ( | |||||||||||||||||||||||
Net income before taxes | ||||||||||||||||||||||||||
Income tax expense | ( | ( | ( | ( | ||||||||||||||||||||||
Net income | ||||||||||||||||||||||||||
Preferred stock dividends | ( | ( | ( | ( | ||||||||||||||||||||||
Net income attributable to FS Credit Real Estate Income Trust, Inc. | $ | $ | $ | $ | ||||||||||||||||||||||
Per share information—basic and diluted | ||||||||||||||||||||||||||
Net income per share of common stock - basic and diluted | $ | $ | $ | $ | ||||||||||||||||||||||
Weighted average common stock outstanding - basic and diluted |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||||||||||||
Other comprehensive income | ||||||||||||||||||||||||||
Net change in unrealized gain (loss) on mortgage-backed securities available-for-sale | ( | ( | ||||||||||||||||||||||||
Total other comprehensive income (loss) | ( | ( | ||||||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ | ||||||||||||||||||||||
Par Value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock Class F | Common Stock Class Y | Common Stock Class T | Common Stock Class S | Common Stock Class D | Common Stock Class M | Common Stock Class I | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss)(1) | Retained Earnings (Accumulated Deficit) | Total Stockholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2023 | $ | $ | $ | $ | $ | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions declared | — | — | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from distribution reinvestment plan | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemptions of common stock | — | ( | ( | — | ( | ( | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholder servicing fees | — | — | — | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Offering costs | — | — | — | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock units issued | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on preferred stock | — | — | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adoption of ASU 2016-13, see Note 2 | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2023 | $ | $ | $ | $ | $ | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2022 | $ | $ | $ | $ | $ | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions declared | — | — | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from distribution reinvestment plan | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemptions of common stock | — | — | — | ( | — | ( | ( | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholder servicing fees | — | — | — | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Offering costs | — | — | — | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performance contingent rights issued | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on preferred stock | — | — | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2022 | $ | $ | $ | $ | $ | $ | $ | $ | $ | ( | $ | $ |
Par Value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock Class F | Common Stock Class Y | Common Stock Class T | Common Stock Class S | Common Stock Class D | Common Stock Class M | Common Stock Class I | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss)(1) | Retained Earnings (Accumulated Deficit) | Total Stockholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2022 | $ | $ | $ | $ | $ | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions declared | — | — | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from distribution reinvestment plan | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemptions of common stock | ( | — | ( | ( | — | ( | ( | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholder servicing fees | — | — | — | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Offering costs | — | — | — | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock units issued | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on preferred stock | — | — | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2023 | $ | $ | $ | $ | $ | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2021 | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions declared | — | — | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from distribution reinvestment plan | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemptions of common stock | — | — | — | ( | — | ( | ( | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholder servicing fees | — | — | — | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Offering costs | — | — | — | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performance contingent rights issued | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on preferred stock | — | — | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2022 | $ | $ | $ | $ | $ | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Cash flows from operating activities | ||||||||||||||
Net income | $ | $ | ||||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ||||||||||||||
Performance contingent rights issued | ||||||||||||||
Restricted stock units | ||||||||||||||
Amortization of deferred fees on loans and debt securities | ( | ( | ||||||||||||
Amortization of deferred financing costs and discount | ||||||||||||||
Increase in current expected credit loss reserve | ||||||||||||||
Net unrealized (gain) loss on valuation of interest rate cap | ( | |||||||||||||
Depreciation and amortization | ||||||||||||||
Net unrealized (gain) loss on mortgage-backed securities, fair value option | ( | |||||||||||||
Net unrealized (gain) loss on mortgage loans and obligations held in securitization trusts | ||||||||||||||
Changes in assets and liabilities | ||||||||||||||
Reimbursement due from (due to) sponsor | ||||||||||||||
Interest receivable | ( | ( | ||||||||||||
Other assets | ( | |||||||||||||
Due to related party | ||||||||||||||
Interest payable | ||||||||||||||
Other liabilities | ||||||||||||||
Net cash provided by (used in) operating activities | ||||||||||||||
Cash flows used in investing activities | ||||||||||||||
Origination and fundings of loans receivable | ( | ( | ||||||||||||
Principal collections from loans receivable, held-for-investment | ||||||||||||||
Exit and extension fees received on loans receivable, held-for-investment | ||||||||||||||
Purchases of mortgage-backed securities, at fair value | ( | ( | ||||||||||||
Principal repayments of mortgage-backed securities, at fair value | ||||||||||||||
Purchases of mortgage-backed securities held-to-maturity | ( | |||||||||||||
Acquisition of real estate | ( | |||||||||||||
Capital improvements to real estate | ( | |||||||||||||
Net cash provided by (used in) investing activities | ( | ( | ||||||||||||
Cash flows from financing activities | ||||||||||||||
Issuance of common stock | ||||||||||||||
Redemptions of common stock | ( | ( | ||||||||||||
Stockholder distributions paid | ( | ( | ||||||||||||
Stockholder servicing fees paid | ( | ( | ||||||||||||
Offering costs paid | ( | ( | ||||||||||||
Borrowing under mortgage note payable | ||||||||||||||
Borrowings under repurchase agreements | ||||||||||||||
Repayments under repurchase agreements | ( | ( | ||||||||||||
Borrowings under credit facilities | ||||||||||||||
Repayments under credit facilities | ( | ( | ||||||||||||
Proceeds from issuance of collateralized loan obligations | ||||||||||||||
Repayment of collateralized loan obligations | ( | ( | ||||||||||||
Payment of deferred financing costs | ( | ( | ||||||||||||
Net cash provided by (used in) financing activities | ||||||||||||||
Total increase (decrease) in cash, cash equivalents and restricted cash | ||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | ||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | $ |
Nine Months Ended September 30, 2023 | ||||||||||||||
2023 | 2022 | |||||||||||||
Supplemental disclosure of cash flow information and non-cash financial activities | ||||||||||||||
Payments of interest | $ | $ | ||||||||||||
Accrued stockholder servicing fee | $ | $ | ||||||||||||
Distributions payable | $ | $ | ||||||||||||
Reinvestment of stockholder distributions | $ | $ | ||||||||||||
Payable for shares repurchased | $ | $ | ||||||||||||
Loan principal payments held by servicer | $ | $ | ||||||||||||
Payable for investments purchased | $ | $ | ||||||||||||
Purchase of mortgage loans held in securitization trusts at fair value | $ | ( | $ | |||||||||||
Mortgage obligations issued by securitization trusts, at fair value | $ | $ |
September 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Total cash, cash equivalents and restricted cash | $ | $ |
Loan Risk Rating | Summary Description | |||||||
1 | Very Low Risk | |||||||
2 | Low Risk | |||||||
3 | Medium Risk | |||||||
4 | High Risk/Potential for Loss | |||||||
5 | Impaired/Loss Likely: A loan that has a very high risk of realizing a principal loss or has otherwise incurred a principal loss |
Impact of ASU 2016-13 Adoption | ||||||||
Assets: | ||||||||
Loans receivable, held-for-investment | ||||||||
Senior loans | $ | |||||||
Mezzanine loans | ||||||||
CECL reserve on Loans receivable, held-for-investment | ||||||||
CECL reserve on Mortgage-backed securities held-to-maturity | ||||||||
Liabilities: | ||||||||
Other liabilities | ||||||||
CECL reserve on unfunded loan commitments | ||||||||
Total impact of 2016-13 adoption on retained earnings | $ |
Description | Depreciable Life | |||||||
Building | ||||||||
Building and land improvements | ||||||||
Furniture, fixtures and equipment | ||||||||
Tenant improvements | Shorter of estimated useful life or lease term | |||||||
Lease intangibles | Over lease term |
September 30, 2023 (Unaudited) | December 31, 2022 | |||||||||||||
Number of loans | ||||||||||||||
Principal balance | $ | $ | ||||||||||||
Net book value | $ | $ | ||||||||||||
Unfunded loan commitments(1) | $ | $ | ||||||||||||
Weighted-average cash coupon(2)(3) | + | + | % | |||||||||||
Weighted-average all-in yield(2)(3) | + | + | % | |||||||||||
Weighted-average maximum maturity (years)(4) |
For the Nine Months Ended September 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Loans receivable at beginning of period | $ | $ | ||||||||||||
Loan fundings | ||||||||||||||
Loan repayments | ( | ( | ||||||||||||
Amortization of deferred fees on loans | ||||||||||||||
Exit and extension fees received on loans receivable | ( | ( | ||||||||||||
Loans receivable at end of period | ||||||||||||||
CECL reserve | ( | |||||||||||||
Loans receivable, net, at end of period | $ | $ |
September 30, 2023 (Unaudited) | December 31, 2022 | |||||||||||||||||||||||||
Property Type | Net Book Value | Percentage | Net Book Value | Percentage | ||||||||||||||||||||||
Multifamily | $ | % | $ | % | ||||||||||||||||||||||
Hospitality | % | % | ||||||||||||||||||||||||
Office | % | % | ||||||||||||||||||||||||
Industrial | % | % | ||||||||||||||||||||||||
Retail | % | % | ||||||||||||||||||||||||
Self Storage | % | % | ||||||||||||||||||||||||
Various | % | % | ||||||||||||||||||||||||
Mixed Use | % | % | ||||||||||||||||||||||||
Loans receivable at end of period | % | % | ||||||||||||||||||||||||
CECL reserve | ( | |||||||||||||||||||||||||
Loans receivable, net, at end of period | $ | $ |
September 30, 2023 (Unaudited) | December 31, 2022 | |||||||||||||||||||||||||
Geographic Location(1) | Net Book Value | Percentage | Net Book Value | Percentage | ||||||||||||||||||||||
South | $ | % | $ | % | ||||||||||||||||||||||
West | % | % | ||||||||||||||||||||||||
Northeast | % | % | ||||||||||||||||||||||||
Various | % | % | ||||||||||||||||||||||||
Midwest | % | % | ||||||||||||||||||||||||
Loans receivable at end of period | % | % | ||||||||||||||||||||||||
CECL reserve | ( | |||||||||||||||||||||||||
Loans receivable, net, at end of period | $ | $ |
September 30, 2023 (Unaudited) | December 31, 2022 | |||||||||||||||||||||||||||||||||||||
Risk Rating | Number of Loans | Net Book Value | Percentage | Number of Loans | Net Book Value | Percentage | ||||||||||||||||||||||||||||||||
1 | $ | $ | ||||||||||||||||||||||||||||||||||||
2 | ||||||||||||||||||||||||||||||||||||||
3 | % | % | ||||||||||||||||||||||||||||||||||||
4 | % | |||||||||||||||||||||||||||||||||||||
5 | % | |||||||||||||||||||||||||||||||||||||
Loans receivable at end of period | % | % | ||||||||||||||||||||||||||||||||||||
CECL reserve | ( | |||||||||||||||||||||||||||||||||||||
Loans receivable, net, at end of period | $ | $ |
Senior Loans | Mezzanine Loans | Total | ||||||||||||||||||
CECL Reserve as of December 31, 2022 | $ | $ | $ | |||||||||||||||||
CECL reserve recorded on January 1, 2023 | ||||||||||||||||||||
Increase (Decrease) in general CECL reserve | ||||||||||||||||||||
CECL reserve as of March 31, 2023 | $ | $ | $ | |||||||||||||||||
Increase (Decrease) in general CECL reserve | ||||||||||||||||||||
Increase (Decrease) in specific CECL reserve | ||||||||||||||||||||
CECL reserve as of June 30, 2023 | $ | $ | $ | |||||||||||||||||
Increase (Decrease) in general CECL reserve | ( | ( | ( | |||||||||||||||||
Increase (Decrease) in specific CECL reserve | ||||||||||||||||||||
CECL reserve as of September 30, 2023 | $ | $ | $ |
Risk Rating | Net Book Value of Loans Receivable by Year of Origination September 30, 2023 (Unaudited) | |||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | ||||||||||||||||||||||||||||||||||||||
1 | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
2 | ||||||||||||||||||||||||||||||||||||||||||||
3 | ||||||||||||||||||||||||||||||||||||||||||||
4 | ||||||||||||||||||||||||||||||||||||||||||||
5 | ||||||||||||||||||||||||||||||||||||||||||||
Loans receivable | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
CECL reserve | ( | |||||||||||||||||||||||||||||||||||||||||||
Loans receivable, net | $ |
Unfunded Commitments CECL Reserve September 30, 2023 (Unaudited) | ||||||||||||||||||||
Senior Loans | Mezzanine Loans | Total | ||||||||||||||||||
Unfunded Loan Commitments | ||||||||||||||||||||
CECL Reserve as of December 31, 2022 | $ | $ | $ | |||||||||||||||||
CECL reserve recorded on January 1, 2023 | ||||||||||||||||||||
Increase (Decrease) in CECL reserve | ( | ( | ||||||||||||||||||
CECL reserve as of March 31, 2023 | $ | $ | $ | |||||||||||||||||
Increase (Decrease) in CECL reserve | ( | |||||||||||||||||||
CECL reserve as of June 30, 2023 | $ | $ | $ | |||||||||||||||||
Increase (Decrease) in CECL reserve | ( | ( | ( | |||||||||||||||||
CECL reserve as of September 30, 2023 | $ | $ | $ |
Gross Unrealized | Weighted Average | |||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding Face Amount | Amortized Cost Basis | Allowance for Credit Losses | Gains | Losses | Fair Value | Coupon | Remaining Duration (years) | |||||||||||||||||||||||||||||||||||||||||||
September 30, 2023 (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||
CMBS, available-for-sale | $ | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||
CMBS, fair value option | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||
CMBS, available-for-sale | $ | $ | $ | $ | $ | ( | $ |
Nine Months Ended September 30, 2023 | ||||||||
Allowance for credit losses at beginning of period | $ | |||||||
Additions on securities for which credit losses were not previously recorded | ||||||||
(Increase) decrease on securities with previously recorded credit losses | ||||||||
Allowance for credit losses as of March 31, 2023 | ||||||||
Additions on securities for which credit losses were not previously recorded | ( | |||||||
(Increase) decrease on securities with previously recorded credit losses | ||||||||
Allowance for credit losses as of June 30, 2023 | ( | |||||||
Additions on securities for which credit losses were not previously recorded | ||||||||
(Increase) decrease on securities with previously recorded credit losses | ( | |||||||
Allowance for credit losses as of September 30, 2023 | $ | ( |
Estimated Fair Value | Unrealized Losses | |||||||||||||||||||||||||
Securities with a loss less than 12 months | Securities with a loss greater than 12 months | Securities with a loss less than 12 months | Securities with a loss greater than 12 months | |||||||||||||||||||||||
September 30, 2023 (Unaudited) | ||||||||||||||||||||||||||
CMBS, available-for-sale | $ | $ | $ | ( | $ | ( | ||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||
CMBS, available-for-sale | $ | $ | $ | ( | $ | ( |
Amortized Cost Basis | Credit Loss Allowance | Net Carrying Amount | Gross Unrecognized Holding Gains | Gross Unrecognized Holding Losses | Fair Value | |||||||||||||||||||||||||||||||||
September 30, 2023 (Unaudited) | ||||||||||||||||||||||||||||||||||||||
CMBS, held-to-maturity | $ | $ | ( | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||||||||||||||
CMBS, held-to-maturity | $ | $ | $ | $ | $ | $ |
September 30, 2023 (Unaudited) | ||||||||
CMBS, held-to-maturity | ||||||||
CECL Reserve as of December 31, 2022 | $ | |||||||
CECL reserve recorded on January 1, 2023 | ||||||||
Increase (Decrease) in CECL reserve | ( | |||||||
CECL reserve as of March 31, 2023 | $ | |||||||
Increase (Decrease) in CECL reserve | ( | |||||||
CECL reserve as of June 30, 2023 | $ | |||||||
Increase (Decrease) in CECL reserve | ( | |||||||
CECL reserve as of September 30, 2023 | $ |
Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | ||||||||||||||||||||||||||||
September 30, 2023 (Unaudited) | ||||||||||||||||||||||||||||||||
CMBS, held-to-maturity | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||||||||
CMBS, held-to-maturity | $ | $ | $ | $ | $ |
September 30, 2023 (Unaudited) | December 31, 2022 | |||||||||||||
Building and building improvements | $ | $ | ||||||||||||
Land and land improvements | ||||||||||||||
Furniture, fixtures and equipment | ||||||||||||||
In-place lease intangibles | ||||||||||||||
Total | ||||||||||||||
Accumulated depreciation and amortization | ( | ( | ||||||||||||
Real estate, net | $ | $ |
Amortization | ||||||||
2023 (remaining) | $ | |||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
Thereafter | ||||||||
Total | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Rental income | $ | $ | $ | $ | ||||||||||||||||||||||
Less: depreciation and amortization | ( | ( | ( | ( | ||||||||||||||||||||||
Less: cost of rental operations(1) | ( | ( | ( | ( | ||||||||||||||||||||||
Rental operations, net | $ | ( | $ | ( | $ | ( | $ | ( |
As of September 30, 2023 (Unaudited) | ||||||||||||||||||||||||||||||||||||||
Arrangement | Weighted Average Spread(2) | Amount Outstanding(1) | Amount Available | Maturity Date | Carrying Amount of Collateral | Fair Value of Collateral | ||||||||||||||||||||||||||||||||
Collateralized Loan Obligations | ||||||||||||||||||||||||||||||||||||||
2019-FL1 Notes | + | $ | $ | December 18, 2036 | $ | $ | ||||||||||||||||||||||||||||||||
2021-FL2 Notes | + | May 5, 2038 | ||||||||||||||||||||||||||||||||||||
2021-FL3 Notes | + | November 4, 2036 | ||||||||||||||||||||||||||||||||||||
2022-FL4 Notes | + | January 31, 2039 | ||||||||||||||||||||||||||||||||||||
2022-FL5 Notes | + | June 17, 2037 | ||||||||||||||||||||||||||||||||||||
2022-FL6 Notes | + | August 19, 2037 | ||||||||||||||||||||||||||||||||||||
2022-FL7 Notes | + | October 17, 2039 | ||||||||||||||||||||||||||||||||||||
Repurchase Agreements | ||||||||||||||||||||||||||||||||||||||
WF-1 Facility | + | August 30, 2024 | ||||||||||||||||||||||||||||||||||||
GS-1 Facility | + | January 26, 2025 | ||||||||||||||||||||||||||||||||||||
RBC Facility | + | N/A | ||||||||||||||||||||||||||||||||||||
BB-1 Facility | + | February 22, 2024 | ||||||||||||||||||||||||||||||||||||
MS-1 Facility | + | October 13, 2025 | ||||||||||||||||||||||||||||||||||||
NTX-1 Facility | (3) | November 10, 2024 | ||||||||||||||||||||||||||||||||||||
BMO-1 Facility | + | March 1, 2024 | ||||||||||||||||||||||||||||||||||||
Lucid Facility | + | N/A | ||||||||||||||||||||||||||||||||||||
Revolving Credit Facility | ||||||||||||||||||||||||||||||||||||||
MM-1 Facility | + | September 20, 2029 | ||||||||||||||||||||||||||||||||||||
Barclays Facility | (8) | August 1, 2025 | ||||||||||||||||||||||||||||||||||||
Mortgage Loan | ||||||||||||||||||||||||||||||||||||||
Natixis Loan | July 9, 2025 | |||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
As of December 31, 2022 | ||||||||||||||||||||||||||||||||||||||
Arrangement | Weighted Average Interest Rate(2) | Amount Outstanding(1) | Amount Available | Maturity Date | Carrying Amount of Collateral | Fair Value of Collateral | ||||||||||||||||||||||||||||||||
Collateralized Loan Obligations | ||||||||||||||||||||||||||||||||||||||
2019-FL1 Notes | + | $ | $ | December 18, 2036 | $ | $ | ||||||||||||||||||||||||||||||||
2021-FL2 Notes | + | May 5, 2038 | ||||||||||||||||||||||||||||||||||||
2021-FL3 Notes | + | November 4, 2036 | ||||||||||||||||||||||||||||||||||||
2022-FL4 Notes | + | January 31, 2039 | ||||||||||||||||||||||||||||||||||||
2022-FL5 Notes | + | June 17, 2037 | ||||||||||||||||||||||||||||||||||||
2022-FL6 Notes | + | August 19, 2037 | ||||||||||||||||||||||||||||||||||||
2022-FL7 Notes | + | October 17, 2039 | ||||||||||||||||||||||||||||||||||||
Repurchase Agreements | ||||||||||||||||||||||||||||||||||||||
WF-1 Facility | + | August 30, 2024 | ||||||||||||||||||||||||||||||||||||
GS-1 Facility | + | January 26, 2023 | ||||||||||||||||||||||||||||||||||||
RBC Facility | N/A | |||||||||||||||||||||||||||||||||||||
BB-1 Facility | + | February 22, 2024 | ||||||||||||||||||||||||||||||||||||
MS-1 Facility | + | October 13, 2025 | ||||||||||||||||||||||||||||||||||||
NTX-1 Facility | (4) | November 10, 2024 | ||||||||||||||||||||||||||||||||||||
Revolving Credit Facilities | ||||||||||||||||||||||||||||||||||||||
MM-1 Facility | + | September 20, 2029 | ||||||||||||||||||||||||||||||||||||
Barclays Facility | (9) | August 1, 2025 | ||||||||||||||||||||||||||||||||||||
Mortgage Loan | ||||||||||||||||||||||||||||||||||||||
Natixis Loan | + | July 9, 2025 | ||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
Collateralized Loan Obligations(1) | Repurchase Agreements | Revolving Credit Facility | Mortgage Loan | Total | ||||||||||||||||||||||||||||
2023 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
2024 | ||||||||||||||||||||||||||||||||
2025 | ||||||||||||||||||||||||||||||||
2026 | ||||||||||||||||||||||||||||||||
Thereafter | ||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
As of September 30, 2023 (Unaudited) | ||||||||||||||
Collateral Assets | Total Count | Principal Balance | ||||||||||||
2019-FL1 | $ | |||||||||||||
2021-FL2 | ||||||||||||||
2021-FL3 | ||||||||||||||
2022-FL4 | ||||||||||||||
2022-FL5 | ||||||||||||||
2022-FL6 | ||||||||||||||
2022-FL7 | ||||||||||||||
Total | $ |
September 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Face value | $ | $ | ||||||||||||
Unamortized deferred financing costs | ( | ( | ||||||||||||
Unamortized discount | ( | ( | ||||||||||||
Net book value | $ | $ |
September 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Face value | $ | $ | ||||||||||||
Unamortized deferred financing costs | ( | ( | ||||||||||||
Net book value | $ | $ |
September 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Face value | $ | $ | ||||||||||||
Unamortized deferred financing costs | ( | ( | ||||||||||||
Net book value | $ | $ |
September 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Face value | $ | $ | ||||||||||||
Unamortized deferred financing costs | ( | ( | ||||||||||||
Net book value | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||
Related Party | Source Agreement | Description | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||
FS Real Estate Advisor | Advisory Agreement | Base Management Fee(1) | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
FS Real Estate Advisor | Advisory Agreement | Performance Fee(2) | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
FS Real Estate Advisor | Advisory Agreement | Administrative Services Expenses(3) | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
FS Real Estate Advisor | Advisory Agreement | Administrative Services Fee(4) | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
FS Real Estate Advisor | Advisory Agreement | Capital Markets Fees | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Rialto Capital Management | Sub-Advisory Agreement | Valuation Services Fees(5) | $ | $ | $ | $ |
For the Three Months Ended | Amount of Expense Reimbursement | Recoupable Amount | Recoupment paid or payable to sponsor | Expired Amount | Recoupment eligibility expiration | |||||||||||||||||||||||||||
September 30, 2023 | $ | $ | $ | $ | September 30, 2025 | |||||||||||||||||||||||||||
June 30, 2023 | June 30, 2025 | |||||||||||||||||||||||||||||||
March 31, 2023 | March 31, 2025 | |||||||||||||||||||||||||||||||
December 31, 2022 | December 31, 2024 | |||||||||||||||||||||||||||||||
$ | $ | $ | $ |
Shares | |||||||||||||||||||||||||||||||||||||||||||||||
Class F | Class Y | Class T | Class S | Class D | Class M | Class I | Total | ||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock | |||||||||||||||||||||||||||||||||||||||||||||||
Reinvestment of distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Redemptions of common stock | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Transfers in or out | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
Amount | |||||||||||||||||||||||||||||||||||||||||||||||
Class F | Class Y | Class T | Class S | Class D | Class M | Class I | Total | ||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2022 | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Issuance of common stock | |||||||||||||||||||||||||||||||||||||||||||||||
Reinvestment of distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Redemptions of common stock | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Transfers in or out | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Accrued stockholder servicing fees(1) | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2023 | $ | $ | $ | $ | $ | $ | $ | $ |
Shares | |||||||||||||||||||||||||||||||||||||||||||||||
Class F | Class Y | Class T | Class S | Class D | Class M | Class I | Total | ||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock | |||||||||||||||||||||||||||||||||||||||||||||||
Reinvestment of distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Redemptions of common stock | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Transfers in or out | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Amount | |||||||||||||||||||||||||||||||||||||||||||||||
Class F | Class Y | Class T | Class S | Class D | Class M | Class I | Total | ||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2021 | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Issuance of common stock | |||||||||||||||||||||||||||||||||||||||||||||||
Reinvestment of distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Redemptions of common stock | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Transfers in or out | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Accrued stockholder servicing fees(1) | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2022 | $ | $ | $ | $ | $ | $ | $ | $ |
Record Date | Class F | Class Y | Class T | Class S | Class D | Class M | Class I | |||||||||||||||||||||||||||||||||||||
January 30, 2023 | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
February 27, 2023 | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
March 30, 2023 | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
April 27, 2023 | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
May 30, 2023 | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
June 29, 2023 | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
July 28, 2023 | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
August 30, 2023 | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
September 29, 2023 | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Distributions: | ||||||||||||||||||||||||||
Paid or payable in cash | $ | $ | $ | $ | ||||||||||||||||||||||
Reinvested in shares | ||||||||||||||||||||||||||
Total distributions | $ | $ | $ | $ | ||||||||||||||||||||||
Source of distributions: | ||||||||||||||||||||||||||
Cash flows from operating activities | $ | $ | $ | $ | ||||||||||||||||||||||
Offering proceeds | ||||||||||||||||||||||||||
Total sources of distributions | $ | $ | $ | $ | ||||||||||||||||||||||
Net cash provided by (used in) operating activities(1) | $ | $ | $ | $ |
Class F | Class Y | Class T | Class S | Class D | Class M | Class I | ||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
September 30, 2023 (Unaudited) | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||||||||||||
Financial Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities, at fair value | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Mortgage loans held in securitization trusts, at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate cap | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Financial Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage obligations issued by securitization trusts, at fair value | $ | $ | $ | $ |
Mortgage loans held in securitization trusts, at fair value | ||||||||
Fair value at beginning of period | $ | |||||||
Accretion of discount (amortization of premium) | ||||||||
Net realized gain (loss) | ||||||||
Net change in unrealized appreciation (depreciation) | ||||||||
Purchases | ||||||||
Sales and repayments | ||||||||
Issuances | ||||||||
Transfer into Level 3 | ||||||||
Transfers out of Level 3 | ||||||||
Consolidation of securitization trusts | ||||||||
Deconsolidation of securitization trusts | ||||||||
Fair value at end of period | $ | |||||||
Amount of unrealized gains (losses) attributable to assets still held at September 30, 2023 | ||||||||
Included in earnings | $ | |||||||
Included in other comprehensive income |
September 30, 2023 (Unaudited) | December 31, 2022 | |||||||||||||||||||||||||||||||||||||
Book Value | Face Amount | Fair Value | Book Value | Face Amount | Fair Value | |||||||||||||||||||||||||||||||||
Financial Assets | ||||||||||||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Loans receivable - held-for-investment(1) | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Mortgage-backed securities held-to-maturity | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Financial Liabilities | ||||||||||||||||||||||||||||||||||||||
Repurchase agreements(2) | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Credit facilities | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Collateralized loan obligations(2)(3) | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Mortgage note payable(2) | $ | $ | $ | $ | $ | $ |
September 30, 2023 (Unaudited) | December 31, 2022 | |||||||||||||
Assets: | ||||||||||||||
Restricted cash | $ | $ | ||||||||||||
Loans receivable, held-for-investment | ||||||||||||||
Interest receivable | ||||||||||||||
Other assets | ||||||||||||||
Mortgage loans held in securitization trusts, at fair value | ||||||||||||||
Total assets | $ | $ | ||||||||||||
Liabilities | ||||||||||||||
Collateralized loan obligations, net | $ | $ | ||||||||||||
Interest payable | ||||||||||||||
Other liabilities | ||||||||||||||
Mortgage obligations issued by securitization trusts, at fair value | ||||||||||||||
Total liabilities | $ | $ |
Type of Derivative | Notional Amount | Strike | Effective Date | Maturity Date | Fair Value(1) | |||||||||||||||||||||||||||
Interest Rate Cap | $ | % | June 21, 2022 | July 9, 2024 | $ |
Type of Derivative | Realized/Unrealized Gain (Loss) | Location of Gain (Loss) Recognized in Net Income | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||
Interest Rate Cap | Unrealized Loss | Other income (loss) | $ | ( | $ | $ | ( | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Loan fundings(1) | $ | 440,443 | $ | 646,718 | $ | 1,014,971 | $ | 3,731,304 | ||||||||||||||||||
Loan repayments(2) | (247,394) | (94,796) | (631,692) | (483,832) | ||||||||||||||||||||||
Total net fundings | $ | 193,049 | $ | 551,922 | $ | 383,279 | $ | 3,247,472 |
September 30, 2023 (Unaudited) | December 31, 2022 | |||||||||||||
Number of loans | 143 | 142 | ||||||||||||
Principal balance | $ | 7,735,561 | $ | 7,350,271 | ||||||||||
Net book value | $ | 7,665,632 | $ | 7,350,315 | ||||||||||
Unfunded loan commitments(1) | $ | 456,666 | $ | 574,510 | ||||||||||
Weighted-average cash coupon(2) | +3.90% | +3.83% | ||||||||||||
Weighted-average all-in yield(2) | +3.97% | +3.90% | ||||||||||||
Weighted-average maximum maturity (years)(3) | 3.3 | 4.0 |
Loan Type | Origination Date(1) | Total Loan | Principal Balance | Net Book Value | Cash Coupon(2) | All-in Yield(2) | Maximum Maturity(3) | Location | Property Type | LTV(1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | Senior Loan | 3/7/2018 | $ | 11,000 | $ | 11,000 | $ | 10,987 | +5.75% | +5.87% | 6/9/2024 | Las Vegas, NV | Hospitality | 73% | |||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Senior Loan | 6/11/2018 | 8,000 | 8,000 | 7,999 | +5.25% | +5.34% | 3/9/2024 | Miami, FL | Retail | 67% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Senior Loan | 7/18/2018 | 22,500 | 22,500 | 22,464 | +5.36% | +5.53% | 8/9/2025 | Gaithersburg, MD | Hospitality | 73% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Senior Loan | 4/9/2019 | 37,000 | 37,000 | 36,933 | +4.25% | +4.25% | 4/9/2025 | New York City, NY | Mixed Use | 75% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Senior Loan | 6/28/2019 | 28,500 | 28,500 | 28,498 | +5.46% | +5.57% | 7/9/2025 | Davis, CA | Hospitality | 70% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Senior Loan | 10/22/2019 | 15,300 | 15,300 | 15,412 | +5.00% | +5.22% | 5/9/2025 | Oakland, CA | Mixed Use | 74% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | Mezz Loan | 2/14/2020 | 15,000 | 15,000 | 15,000 | +7.61% | +7.61% | 12/5/2026 | Queens, NY | Multifamily | 75% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | Senior Loan | 2/19/2020 | 18,000 | 14,400 | 14,402 | +3.61% | +3.61% | 3/9/2025 | Los Angeles, CA | Mixed Use | 63% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
9 | Mezz Loan | 2/21/2020 | 18,102 | 18,102 | 18,102 | +10.00% | +10.00% | 3/1/2030 | Various | Industrial | 79% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
10 | Senior Loan | 12/10/2020 | 22,300 | 17,672 | 17,669 | +5.36% | +5.37% | 1/9/2026 | Fox Hills, CA | Office | 81% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
11 | Senior Loan | 12/18/2020 | 28,440 | 24,738 | 24,737 | +4.61% | +4.62% | 1/9/2026 | Rockville, MD | Office | 75% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
12 | Senior Loan | 12/29/2020 | 11,983 | 11,808 | 12,062 | +3.86% | +4.03% | 1/9/2026 | Brooklyn, NY | Multifamily | 49% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
13 | Senior Loan | 1/28/2021 | 16,100 | 16,100 | 16,153 | +4.61% | +4.74% | 2/9/2026 | Philadelphia, PA | Self Storage | 84% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
14 | Senior Loan | 2/26/2021 | 18,590 | 17,706 | 17,703 | +3.36% | +3.37% | 3/9/2026 | Newark, NJ | Industrial | 60% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
15 | Senior Loan | 3/11/2021 | 32,000 | 30,000 | 29,997 | +4.61% | +4.70% | 3/9/2026 | Colleyville, TX | Retail | 58% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
16 | Senior Loan | 3/12/2021 | 52,250 | 34,251 | 34,246 | +5.86% | +5.87% | 3/9/2026 | San Francisco, CA | Office | 86% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
17 | Senior Loan | 3/19/2021 | 12,718 | 12,718 | 12,768 | +4.06% | +4.24% | 4/9/2026 | Brooklyn, NY | Multifamily | 84% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
18 | Senior Loan | 3/25/2021 | 13,405 | 12,830 | 12,855 | +3.36% | +3.45% | 4/9/2026 | Lithonia, GA | Multifamily | 72% |
Loan Type | Origination Date(1) | Total Loan | Principal Balance | Net Book Value | Cash Coupon(2) | All-in Yield(2) | Maximum Maturity(3) | Location | Property Type | LTV(1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
19 | Senior Loan | 3/29/2021 | $ | 35,880 | $ | 34,397 | $ | 34,392 | +3.71% | +3.72% | 4/9/2026 | Arlington, TX | Multifamily | 86% | |||||||||||||||||||||||||||||||||||||||||||||||||||
20 | Senior Loan | 4/15/2021 | 64,460 | 64,171 | 64,164 | +2.91% | +2.92% | 5/9/2026 | Lawrenceville, GA | Multifamily | 79% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
21 | Senior Loan | 4/26/2021 | 68,100 | 66,000 | 65,993 | +3.26% | +3.27% | 5/9/2026 | North Las Vegas, NV | Multifamily | 72% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
22 | Senior Loan | 4/27/2021 | 39,050 | 35,562 | 35,558 | +3.26% | +3.27% | 5/9/2026 | Jamaica, NY | Industrial | 61% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
23 | Senior Loan | 5/4/2021 | 30,000 | 24,466 | 24,463 | 5.66% | +5.92% | 5/9/2026 | Richardson, TX | Office | 76% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
24 | Senior Loan | 5/10/2021 | 19,200 | 17,892 | 17,886 | +3.61% | +3.63% | 5/9/2026 | University City, PA | Multifamily | 71% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
25 | Senior Loan | 5/12/2021 | 85,000 | 85,000 | 85,092 | +3.11% | +3.17% | 5/9/2026 | Detroit, MI | Industrial | 75% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
26 | Senior Loan | 5/28/2021 | 35,785 | 31,085 | 31,078 | +5.11% | +5.12% | 6/9/2026 | Austin, TX | Office | 57% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
27 | Senior Loan | 6/16/2021 | 17,500 | 16,956 | 16,952 | +3.36% | +3.37% | 7/9/2026 | Everett, WA | Multifamily | 82% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
28 | Senior Loan | 6/16/2021 | 15,406 | 15,320 | 15,316 | +3.36% | +3.37% | 7/9/2026 | Everett, WA | Multifamily | 78% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
29 | Senior Loan | 6/23/2021 | 48,944 | 48,155 | 48,147 | +2.91% | +2.92% | 7/9/2026 | Roswell, GA | Multifamily | 81% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
30 | Senior Loan | 6/24/2021 | 38,600 | 38,085 | 38,077 | +3.86% | +3.87% | 7/9/2026 | Austin, TX | Multifamily | 82% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
31 | Senior Loan | 6/25/2021 | 25,000 | 24,441 | 24,437 | +3.16% | +3.17% | 7/9/2026 | Austin, TX | Multifamily | 70% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
32 | Senior Loan | 7/7/2021 | 52,200 | 47,173 | 47,165 | +3.11% | +3.12% | 7/9/2026 | Austin, FL | Multifamily | 78% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
33 | Senior Loan | 7/13/2021 | 21,350 | 21,350 | 21,342 | +3.51% | +3.53% | 8/9/2026 | Grand Prairie, TX | Multifamily | 72% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
34 | Senior Loan | 7/20/2021 | 21,136 | 18,828 | 18,858 | 3.36% | +3.46% | 8/9/2026 | Las Vegas, NV | Multifamily | 74% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
35 | Senior Loan | 7/21/2021 | 41,300 | 40,617 | 40,613 | +2.91% | +2.92% | 8/9/2026 | Evanston, IL | Multifamily | 82% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
36 | Senior Loan | 7/22/2021 | 62,100 | 60,858 | 60,849 | +3.41% | +3.42% | 8/9/2026 | Nashville, TN | Multifamily | 76% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
37 | Senior Loan | 7/28/2021 | 43,350 | 42,592 | 42,583 | +3.11% | +3.12% | 8/9/2026 | Sandy Springs, GA | Multifamily | 81% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
38 | Senior Loan | 7/29/2021 | 62,500 | 62,500 | 62,498 | +3.21% | +3.22% | 8/9/2026 | Maitland, FL | Multifamily | 72% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
39 | Senior Loan | 7/29/2021 | 47,500 | 47,500 | 47,498 | +3.21% | +3.22% | 8/9/2026 | Clearwater, FL | Multifamily | 79% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
40 | Senior Loan | 8/2/2021 | 60,130 | 58,947 | 58,934 | +2.91% | +2.92% | 8/9/2026 | Austin, TX | Multifamily | 75% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
41 | Senior Loan | 8/3/2021 | 46,500 | 46,500 | 46,501 | +3.21% | +3.28% | 8/9/2026 | San Antonio, TX | Multifamily | 73% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
42 | Senior Loan | 8/3/2021 | 38,500 | 38,500 | 38,499 | +3.21% | +3.28% | 8/9/2026 | San Antonio, TX | Multifamily | 71% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
43 | Senior Loan | 8/6/2021 | 20,000 | 20,000 | 20,045 | +3.21% | +3.31% | 8/9/2026 | Sandy Springs, GA | Multifamily | 74% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
44 | Senior Loan | 8/9/2021 | 53,160 | 51,836 | 51,827 | +3.26% | +3.27% | 8/9/2026 | Philadelphia, PA | Multifamily | 80% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
45 | Senior Loan | 8/9/2021 | 42,660 | 41,526 | 41,521 | +3.16% | +3.17% | 8/9/2026 | Southaven, MS | Multifamily | 61% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
46 | Senior Loan | 8/13/2021 | 29,817 | 26,475 | 26,503 | +3.21% | +3.30% | 9/9/2026 | Various | Industrial | 76% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
47 | Senior Loan | 8/19/2021 | 43,000 | 43,000 | 42,991 | +3.21% | +3.22% | 9/9/2026 | Omaha, NE | Multifamily | 75% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
48 | Senior Loan | 8/25/2021 | 41,395 | 41,043 | 41,034 | +3.26% | +3.27% | 9/9/2026 | Cypress, TX | Multifamily | 70% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
49 | Senior Loan | 8/26/2021 | 21,805 | 21,605 | 21,596 | +3.21% | +3.23% | 9/9/2026 | Seattle, WA | Multifamily | 75% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
50 | Senior Loan | 8/31/2021 | 37,391 | 37,391 | 37,386 | +3.21% | +3.31% | 9/9/2026 | Colorado Springs, CO | Multifamily | 74% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
51 | Senior Loan | 9/10/2021 | 71,201 | 68,556 | 68,541 | +3.01% | +3.02% | 10/9/2026 | Richardson, TX | Multifamily | 72% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
52 | Senior Loan | 9/23/2021 | 16,300 | 15,343 | 15,421 | +4.36% | +4.61% | 9/9/2026 | Various | Multifamily | 82% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
53 | Mezz Loan | 10/1/2021 | 53,306 | 53,306 | 52,929 | +10.00% | +10.60% | 4/1/2026 | Various | Various | 93% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
54 | Senior Loan | 10/12/2021 | 130,747 | 130,747 | 130,747 | +3.11% | +3.11% | 6/9/2026 | Philadelphia, PA | Multifamily | 67% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
55 | Senior Loan | 10/28/2021 | 40,200 | 39,283 | 39,272 | +3.11% | +3.12% | 11/9/2026 | Dallas, TX | Multifamily | 87% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
56 | Senior Loan | 11/1/2021 | 48,906 | 47,675 | 47,665 | +3.81% | +3.82% | 11/9/2026 | Fort Lauderdale, FL | Office | 72% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
57 | Senior Loan | 11/1/2021 | 42,300 | 41,263 | 41,253 | +3.61% | +3.62% | 11/9/2026 | Doraville, GA | Multifamily | 85% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
58 | Senior Loan | 11/4/2021 | 37,300 | 37,300 | 37,300 | +3.45% | +3.95% | 11/1/2024 | Boca Raton, FL | Multifamily | 84% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
59 | Senior Loan | 11/5/2021 | 55,960 | 52,367 | 52,362 | +3.21% | +3.22% | 11/9/2026 | Houston, TX | Industrial | 79% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
60 | Senior Loan | 11/5/2021 | 36,325 | 35,840 | 35,825 | +3.21% | +3.22% | 11/9/2026 | Mesquite, TX | Multifamily | 81% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
61 | Senior Loan | 11/10/2021 | 47,162 | 44,712 | 44,773 | +3.86% | +4.20% | 11/9/2026 | Fayetteville, AR | Multifamily | 71% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
62 | Senior Loan | 11/18/2021 | 27,387 | 27,387 | 27,380 | +3.71% | +3.72% | 12/9/2026 | Brooklyn, NY | Self Storage | 70% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
63 | Senior Loan | 11/23/2021 | 47,600 | 41,239 | 41,232 | +3.05% | +3.06% | 12/9/2026 | Dallas, TX | Multifamily | 73% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
64 | Senior Loan | 11/23/2021 | 32,000 | 27,802 | 27,796 | +3.05% | +3.06% | 12/9/2026 | Dallas, TX | Multifamily | 74% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
65 | Senior Loan | 11/30/2021 | 38,310 | 37,193 | 37,350 | +4.45% | +4.70% | 12/9/2026 | Memphis, TN | Office | 74% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
66 | Senior Loan | 12/3/2021 | 34,327 | 34,327 | 34,322 | +3.45% | +3.45% | 12/9/2026 | Various | Self Storage | 68% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
67 | Senior Loan | 12/3/2021 | 18,828 | 18,828 | 18,824 | +3.45% | +3.46% | 12/9/2026 | Various | Self Storage | 66% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
68 | Senior Loan | 12/15/2021 | 85,000 | 81,800 | 81,788 | +3.35% | +3.35% | 12/9/2026 | Sunny Isles, FL | Multifamily | 74% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
69 | Senior Loan | 12/15/2021 | 49,000 | 49,000 | 48,988 | +3.45% | +3.46% | 12/9/2026 | Ladson, SC | Multifamily | 77% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
70 | Senior Loan | 12/15/2021 | 28,400 | 27,372 | 27,365 | +3.30% | +3.31% | 12/9/2026 | Arlington, TX | Multifamily | 83% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
71 | Senior Loan | 12/16/2021 | 33,000 | 31,504 | 31,492 | +3.55% | +3.56% | 1/9/2027 | Fort Worth, TX | Multifamily | 74% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
72 | Senior Loan | 12/17/2021 | 46,100 | 36,500 | 36,487 | +4.30% | +4.39% | 1/9/2027 | Seattle, WA | Office | 53% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
73 | Senior Loan | 12/21/2021 | 65,450 | 65,450 | 65,440 | +4.35% | +4.36% | 1/9/2027 | Dallas, TX | Hospitality | 58% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
74 | Senior Loan | 12/21/2021 | 93,900 | 87,743 | 87,734 | +3.80% | +3.80% | 1/9/2027 | Houston, TX | Multifamily | 94% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
75 | Senior Loan | 12/21/2021 | 36,000 | 36,000 | 35,988 | +3.45% | +3.46% | 1/9/2027 | Hackensack, NJ | Multifamily | 71% |
Loan Type | Origination Date(1) | Total Loan | Principal Balance | Net Book Value | Cash Coupon(2) | All-in Yield(2) | Maximum Maturity(3) | Location | Property Type | LTV(1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
76 | Senior Loan | 12/22/2021 | $ | 81,500 | $ | 59,447 | $ | 59,671 | +4.75% | +4.92% | 1/9/2027 | Farmers Branch, TX | Office | 63% | |||||||||||||||||||||||||||||||||||||||||||||||||||
77 | Senior Loan | 12/23/2021 | 83,400 | 74,554 | 74,537 | +4.45% | +4.46% | 1/9/2027 | Westminster, CO | Retail | 70% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
78 | Senior Loan | 12/30/2021 | 95,000 | 95,000 | 94,989 | +4.20% | +4.20% | 1/9/2027 | San Diego, CA | Hospitality | 58% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
79 | Senior Loan | 1/7/2022 | 58,000 | 56,898 | 57,065 | +4.36% | +4.54% | 11/9/2026 | Miami, FL | Hospitality | 52% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
80 | Senior Loan | 1/7/2022 | 36,000 | 36,000 | 36,000 | +3.80% | +3.80% | 1/9/2027 | Jupiter, FL | Office | 72% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
81 | Senior Loan | 1/13/2022 | 103,600 | 94,636 | 94,616 | +3.55% | +3.56% | 1/9/2027 | Austin, TX | Multifamily | 83% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
82 | Senior Loan | 1/28/2022 | 24,489 | 24,489 | 24,539 | +3.81% | +4.01% | 9/9/2026 | Mesquite, TX | Multifamily | 78% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
83 | Senior Loan | 1/28/2022 | 43,650 | 36,581 | 36,666 | +4.00% | +4.13% | 2/9/2027 | Milwaukee, WI | Office | 65% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
84 | Senior Loan | 1/28/2022 | 22,149 | 22,149 | 22,192 | +3.81% | +4.01% | 9/9/2026 | Dallas, TX | Multifamily | 85% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
85 | Senior Loan | 1/28/2022 | 31,229 | 31,229 | 31,292 | +3.81% | +4.01% | 9/9/2026 | Dallas, TX | Multifamily | 83% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
86 | Senior Loan | 2/4/2022 | 89,000 | 89,000 | 89,738 | +3.85% | +3.85% | 2/1/2025 | Temecula, CA | Multifamily | 75% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
87 | Senior Loan | 2/15/2022 | 58,750 | 56,943 | 56,929 | +3.50% | +3.51% | 3/9/2027 | Antioch, TN | Multifamily | 80% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
88 | Senior Loan | 2/17/2022 | 55,400 | 50,093 | 50,152 | +4.10% | +4.19% | 3/9/2027 | Indianapolis, IN | Multifamily | 87% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
89 | Senior Loan | 2/18/2022 | 49,240 | 33,992 | 33,978 | +3.90% | +3.91% | 3/9/2027 | Atlanta, GA | Office | 76% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
90 | Senior Loan | 2/28/2022 | 75,000 | 74,299 | 74,299 | +3.85% | +3.85% | 3/9/2027 | Atlanta, GA | Multifamily | 70% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
91 | Senior Loan | 3/7/2022 | 53,885 | 50,238 | 50,299 | +3.50% | +3.59% | 3/9/2027 | Humble, TX | Multifamily | 79% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
92 | Senior Loan | 3/9/2022 | 84,000 | 80,787 | 80,787 | +3.55% | +3.55% | 3/9/2027 | Temple Hills, MD | Multifamily | 76% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
93 | Senior Loan | 3/10/2022 | 110,150 | 90,577 | 90,559 | +5.00% | +5.01% | 4/9/2027 | Santa Clara, CA | Office | 62% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
94 | Senior Loan | 3/14/2022 | 42,000 | 40,478 | 40,576 | +3.50% | +3.67% | 4/9/2027 | Dallas, TX | Multifamily | 77% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
95 | Senior Loan | 3/22/2022 | 50,750 | 50,750 | 50,750 | +3.60% | +3.60% | 4/9/2027 | Humble, TX | Multifamily | 67% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
96 | Senior Loan | 3/31/2022 | 120,470 | 86,552 | 86,539 | +4.30% | +4.30% | 4/9/2027 | Addison, TX | Office | 69% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
97 | Senior Loan | 4/6/2022 | 46,500 | 44,462 | 44,447 | +3.50% | +3.51% | 4/9/2027 | Atlanta, GA | Multifamily | 80% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
98 | Mezz Loan | 4/6/2022 | 5,379 | 5,379 | 5,379 | +11.00% | +11.00% | 4/9/2027 | Atlanta, GA | Multifamily | 90% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
99 | Senior Loan | 4/13/2022 | 62,650 | 56,294 | 56,275 | +3.90% | +3.91% | 5/9/2027 | Houston, TX | Multifamily | 81% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
100 | Senior Loan | 4/26/2022 | 69,350 | 63,340 | 63,321 | +3.72% | +3.73% | 5/9/2027 | Tucson, AZ | Multifamily | 68% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
101 | Senior Loan | 4/26/2022 | 49,125 | 45,372 | 45,473 | +4.05% | +4.38% | 5/9/2027 | Decatur, GA | Multifamily | 73% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
102 | Senior Loan | 4/27/2022 | 67,940 | 63,473 | 63,506 | +4.00% | +4.06% | 5/9/2027 | Indianapolis, IN | Multifamily | 87% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
103 | Senior Loan | 4/27/2022 | 31,800 | 28,316 | 28,307 | +4.30% | +4.31% | 5/9/2027 | Morrow, GA | Industrial | 77% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
104 | Senior Loan | 4/28/2022 | 195,000 | 195,000 | 195,196 | +4.65% | +4.74% | 5/9/2027 | New York, NY | Hospitality | 70% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
105 | Senior Loan | 4/29/2022 | 90,000 | 90,000 | 90,000 | +3.55% | +3.55% | 5/6/2027 | Reseda, CA | Multifamily | 69% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
106 | Senior Loan | 4/29/2022 | 37,136 | 35,349 | 35,383 | +3.75% | +3.84% | 5/9/2027 | Euless, TX | Multifamily | 82% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
107 | Senior Loan | 5/12/2022 | 58,165 | 56,605 | 56,595 | +3.35% | +3.36% | 5/9/2027 | Denver, CO | Multifamily | 79% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
108 | Mezz Loan | 5/12/2022 | 5,785 | 5,785 | 5,785 | +10.50% | +10.50% | 5/9/2027 | Denver, CO | Multifamily | 87% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
109 | Senior Loan | 5/13/2022 | 93,500 | 92,469 | 92,619 | +4.25% | +4.39% | 5/9/2027 | New York, NY | Multifamily | 64% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
110 | Senior Loan | 5/13/2022 | 89,500 | 86,657 | 86,800 | +4.25% | +4.39% | 5/9/2027 | New York, NY | Multifamily | 63% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
111 | Senior Loan | 5/18/2022 | 105,000 | 105,000 | 105,000 | +3.50% | +3.50% | 6/9/2027 | New Rochelle, NY | Multifamily | 61% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
112 | Senior Loan | 5/20/2022 | 63,000 | 62,364 | 62,357 | +4.15% | +4.15% | 5/9/2027 | Montauk, NY | Hospitality | 80% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
113 | Senior Loan | 5/26/2022 | 108,500 | 100,349 | 100,450 | +3.40% | +3.58% | 6/9/2027 | Mesa, AZ | Multifamily | 68% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
114 | Senior Loan | 6/8/2022 | 144,160 | 144,160 | 144,627 | +3.89% | +4.14% | 6/9/2027 | New York, NY | Multifamily | 73% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
115 | Mezz Loan | 6/8/2022 | 15,840 | 15,840 | 15,892 | +7.50% | +7.75% | 6/9/2027 | New York, NY | Multifamily | 81% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
116 | Senior Loan | 6/9/2022 | 365,610 | 351,276 | 351,245 | 3.30% | +3.30% | 6/9/2027 | Various | Multifamily | 75% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
117 | Senior Loan | 6/14/2022 | 104,630 | 91,030 | 91,014 | +3.80% | +3.81% | 6/9/2027 | San Jose, CA | Industrial | 36% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
118 | Senior Loan | 6/16/2022 | 52,280 | 49,201 | 49,194 | +3.80% | +3.80% | 7/9/2027 | Jacksonville, FL | Multifamily | 77% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
119 | Senior Loan | 6/23/2022 | 57,000 | 48,946 | 48,990 | +4.75% | +4.84% | 7/9/2027 | Seattle, WA | Multifamily | 69% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
120 | Senior Loan | 6/28/2022 | 100,000 | 100,000 | 99,983 | +3.15% | +3.16% | 7/9/2027 | Fayetteville, NC | Multifamily | 76% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
121 | Senior Loan | 6/30/2022 | 106,000 | 100,000 | 99,989 | +4.15% | +4.15% | 7/9/2027 | Lynwood, CA | Retail | 61% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
122 | Senior Loan | 7/7/2022 | 57,250 | 55,542 | 55,590 | +4.35% | +4.44% | 7/9/2027 | Birmingham, AL | Retail | 72% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
123 | Senior Loan | 7/15/2022 | 107,000 | 85,000 | 84,980 | +3.70% | +3.71% | 8/9/2027 | Middletown, DE | Industrial | 68% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
124 | Senior Loan | 7/20/2022 | 85,690 | 80,962 | 81,028 | +3.65% | +3.74% | 8/9/2027 | Phoenix, AZ | Multifamily | 61% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
125 | Senior Loan | 8/4/2022 | 90,000 | 90,000 | 89,990 | +3.65% | +3.65% | 8/9/2027 | Santa Barbara, CA | Various | 60% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
126 | Senior Loan | 8/17/2022 | 55,600 | 53,404 | 53,437 | +3.85% | +3.94% | 9/9/2027 | Austin, TX | Multifamily | 63% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
127 | Senior Loan | 8/25/2022 | 45,000 | 45,000 | 45,234 | +3.50% | +4.00% | 9/9/2027 | McKinney, TX | Multifamily | 53% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
128 | Senior Loan | 9/8/2022 | 87,000 | 74,628 | 74,710 | +4.25% | +4.34% | 9/9/2027 | Washington, DC, MD | Hospitality | 53% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
129 | Senior Loan | 9/22/2022 | 103,552 | 103,552 | 103,811 | +3.66% | +3.79% | 9/1/2024 | Various | Self Storage | 74% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
130 | Senior Loan | 9/30/2022 | 40,000 | 34,500 | 34,585 | +5.00% | +5.27% | 10/9/2027 | New Orleans, LA | Hospitality | 64% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
131 | Senior Loan | 10/3/2022 | 91,100 | 81,300 | 81,284 | +4.50% | +4.51% | 10/9/2027 | Miami, FL | Office | 48% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
132 | Senior Loan | 10/13/2022 | 60,000 | 54,000 | 54,048 | +4.25% | +4.33% | 10/9/2027 | Pinehurst, NC | Multifamily | 60% |
Loan Type | Origination Date(1) | Total Loan | Principal Balance | Net Book Value | Cash Coupon(2) | All-in Yield(2) | Maximum Maturity(3) | Location | Property Type | LTV(1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
133 | Mezz Loan | 10/20/2022 | $ | 31,111 | $ | 29,084 | $ | 29,084 | +6.50% | +6.50% | 10/9/2027 | Philadelphia, PA | Mixed Use | 15% | |||||||||||||||||||||||||||||||||||||||||||||||||||
134 | Senior Loan | 11/3/2022 | 73,000 | 51,350 | 51,386 | +4.75% | +4.85% | 11/9/2027 | Adairsville, GA | Hospitality | 45% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
135 | Senior Loan | 11/15/2022 | 146,200 | 146,200 | 146,200 | +4.21% | +4.21% | 11/9/2027 | Nashville, TN | Hospitality | 51% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
136 | Senior Loan | 12/21/2022 | 55,000 | 53,451 | 53,467 | +3.85% | +3.95% | 12/9/2027 | San Bernardino, CA | Multifamily | 67% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
137 | Senior Loan | 1/13/2023 | 100,000 | 100,000 | 100,088 | +4.75% | +4.87% | 1/13/2025 | New York, NY | Hospitality | 41% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
138 | Senior Loan | 1/20/2023 | 138,407 | 120,407 | 120,407 | +3.70% | +3.70% | 2/9/2028 | Various | Industrial | 95% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
139 | Mezz Loan | 1/20/2023 | 15,379 | 13,379 | 13,379 | +5.20% | +5.20% | 2/9/2028 | Various | Industrial | 106% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
140 | Senior Loan | 3/29/2023 | 48,010 | 48,010 | 46,619 | +2.25% | +4.19% | 10/9/2027 | Various | Multifamily | 57% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
141 | Senior Loan | 7/14/2023 | 156,500 | 156,500 | 156,491 | +4.00% | +4.05% | 7/9/2028 | Various | Multifamily | 69% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
142 | Senior Loan | 7/18/2023 | 128,000 | 120,000 | 120,000 | +3.75% | +3.75% | 8/9/2026 | Jersey City, NJ | Multifamily | 55% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
143 | Senior Loan | 7/31/2023 | 82,000 | 82,000 | 82,025 | +4.95% | +5.12% | 8/9/2028 | Berkeley, CA | Hospitality | 58% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total/Weighted Average | $ | 8,192,227 | $ | 7,735,561 | $ | 7,737,902 | +3.90% | +3.97% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CECL Reserve | (72,270) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans receivable, net | $ | 7,665,632 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Net interest income | ||||||||||||||||||||||||||
Interest income | $ | 192,867 | $ | 111,575 | $ | 551,164 | $ | 226,436 | ||||||||||||||||||
Less: Interest expense | (110,572) | (59,107) | (315,461) | (104,506) | ||||||||||||||||||||||
Interest income on mortgage loans held in securitization trusts | 4,363 | — | 11,590 | — | ||||||||||||||||||||||
Less: Interest expense on mortgage obligations issued by securitization trusts | (3,425) | — | (9,283) | — | ||||||||||||||||||||||
Net interest income | 83,233 | 52,468 | 238,010 | 121,930 | ||||||||||||||||||||||
Other expenses | ||||||||||||||||||||||||||
Management fee | 9,092 | 6,629 | 25,514 | 15,825 | ||||||||||||||||||||||
Performance fee | 6,354 | 3,904 | 17,742 | 4,056 | ||||||||||||||||||||||
General and administrative expenses | 10,008 | 5,685 | 30,446 | 14,528 | ||||||||||||||||||||||
Less: Expense limitation | — | — | (148) | — | ||||||||||||||||||||||
Add: Expense recoupment to sponsor | 753 | 256 | 753 | 3,026 | ||||||||||||||||||||||
Net other expenses | 26,207 | 16,474 | 74,307 | 37,435 | ||||||||||||||||||||||
Other income (loss) | ||||||||||||||||||||||||||
(Increase) decrease in current expected credit loss reserve | 101 | — | (42,130) | — | ||||||||||||||||||||||
Income (loss) from rental operations, net | (234) | (1,068) | (1,931) | (1,068) | ||||||||||||||||||||||
Net change in unrealized gain on interest rate cap | (762) | 1,758 | (1,370) | 309 | ||||||||||||||||||||||
Net realized gain (loss) on extinguishment of debt | 265 | — | 265 | — | ||||||||||||||||||||||
Net change in unrealized gain (loss) on mortgage-backed securities, fair value option | 45 | — | 325 | — | ||||||||||||||||||||||
Unrealized gain (loss) on mortgage loans and obligations held in securitization trusts, net | (213) | — | (742) | — | ||||||||||||||||||||||
Total other income (loss) | (798) | 690 | (45,583) | (759) | ||||||||||||||||||||||
Net income before taxes | 56,228 | 36,684 | 118,120 | 83,736 | ||||||||||||||||||||||
Income tax expense | (274) | (348) | (2,260) | (831) | ||||||||||||||||||||||
Net income | 55,954 | 36,336 | 115,860 | 82,905 | ||||||||||||||||||||||
Preferred stock dividends | (3) | (3) | (11) | (11) | ||||||||||||||||||||||
Net income attributable to FS Credit Real Estate Income Trust, Inc. | $ | 55,951 | $ | 36,333 | $ | 115,849 | $ | 82,894 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Net income (GAAP) | $ | 55,954 | $ | 36,336 | $ | 115,860 | $ | 82,905 | ||||||||||||||||||
Adjustments to arrive at funds from operations: | ||||||||||||||||||||||||||
Real estate depreciation and amortization | 1,835 | 1,839 | 5,501 | 1,839 | ||||||||||||||||||||||
Funds from operations | $ | 57,789 | $ | 38,175 | $ | 121,361 | $ | 84,744 | ||||||||||||||||||
Adjustments to arrive at modified funds from operations: | ||||||||||||||||||||||||||
Accretion of discount on mortgage-backed securities held-to-maturity | (679) | (198) | (6,055) | (497) | ||||||||||||||||||||||
Straight-line rental income | (547) | (342) | (2,877) | (342) | ||||||||||||||||||||||
Net change in unrealized (gain) loss on interest rate cap | 762 | (1,758) | 1,370 | (309) | ||||||||||||||||||||||
Net change in current expected credit loss reserve | (101) | — | 42,130 | — | ||||||||||||||||||||||
Net change in unrealized (gain) loss on mortgage-backed securities fair value option | (45) | — | (325) | — | ||||||||||||||||||||||
Unrealized (gain) loss on mortgage loans and obligations held in securitization trusts, net | 213 | — | 742 | — | ||||||||||||||||||||||
Modified funds from operations | $ | 57,392 | $ | 35,877 | $ | 156,346 | $ | 83,596 |
Components of NAV | September 30, 2023 | |||||||
Cash and cash equivalents | $ | 166,940 | ||||||
Restricted cash | 47,935 | |||||||
Loans receivable, net of specific CECL reserve of $2,967 | 7,734,935 | |||||||
Mortgage-backed securities held-to-maturity | 74,614 | |||||||
Mortgage-backed securities, at fair value | 225,095 | |||||||
Interest receivable | 35,987 | |||||||
Investment in real estate | 184,672 | |||||||
Receivable for investment sold and repaid | 46,316 | |||||||
Other assets | 1,819 | |||||||
Mortgage loans held in securitization trusts, at fair value | 330,629 | |||||||
Repurchase agreements payable, net of deferred financing costs | (239,457) | |||||||
Credit facility payable | (839,507) | |||||||
Collateralized loan obligations, net of deferred financing costs | (4,306,272) | |||||||
Mortgage note, net of deferred financing costs | (123,480) | |||||||
Accrued servicing fees(1) | (1,330) | |||||||
Other liabilities | (298,170) | |||||||
Mortgage loan obligations held in securitization trusts, at fair value | (95,044) | |||||||
Net asset value | $ | 2,945,682 |
NAV per Share | Class F | Class Y | Class T | Class S | Class D | Class M | Class I | Total | ||||||||||||||||||||||||||||||||||||||||||
Net asset value | $ | 19,018 | $ | 21,944 | $ | 34,260 | $ | 1,609,044 | $ | 16,824 | $ | 119,622 | $ | 1,124,970 | $ | 2,945,682 | ||||||||||||||||||||||||||||||||||
Number of outstanding shares | 755,420 | 906,648 | 1,378,393 | 64,127,317 | 675,550 | 4,792,423 | 46,397,317 | 119,033,068 | ||||||||||||||||||||||||||||||||||||||||||
NAV per share as of September 30, 2023 | $ | 25.1754 | $ | 24.2039 | $ | 24.8547 | $ | 25.0914 | $ | 24.9043 | $ | 24.9607 | $ | 24.2464 |
Input | Hypothetical Change | Investment in Real Estate Values | ||||||||||||
Discount Rate | 0.25% decrease | +3.4% | ||||||||||||
0.25% increase | (3.3%) | |||||||||||||
Exit Capitalization Rate | 0.25% decrease | +9.3% | ||||||||||||
0.25% increase | (8.5%) |
Reconciliation of Stockholders' Equity to NAV | September 30, 2023 | |||||||
Total stockholders' equity under GAAP | $ | 2,765,134 | ||||||
Preferred stock | (125) | |||||||
Total stockholders' equity, net of preferred stock, under GAAP | 2,765,009 | |||||||
Adjustments: | ||||||||
Accrued stockholder servicing fees(1) | 114,503 | |||||||
General CECL reserve(2) | 71,010 | |||||||
Unrealized real estate appreciation(3) | (9,635) | |||||||
Accumulated depreciation and amortization(4) | 9,131 | |||||||
Other adjustments(5) | (4,336) | |||||||
Net asset value | $ | 2,945,682 |
Nine Months Ended September 30, 2023 | ||||||||||||||
2023 | 2022 | |||||||||||||
Cash flows from operating activities | $ | 201,619 | $ | 96,098 | ||||||||||
Cash flows used in investing activities | (492,199) | (3,624,819) | ||||||||||||
Cash flows from financing activities | 303,837 | 3,616,355 | ||||||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash | $ | 13,257 | $ | 87,634 |
Quarter Ended | Quarterly Average Unpaid Principal Balance | End of Period Unpaid Principal Balance | Maximum Unpaid Principal Balance at Any Month-End | |||||||||||||||||
September 30, 2023 | $ | 1,142,991 | $ | 1,092,175 | $ | 1,221,440 | ||||||||||||||
June 30, 2023 | $ | 1,158,316 | $ | 1,101,753 | $ | 1,158,043 | ||||||||||||||
March 31, 2023 | $ | 1,222,233 | $ | 1,278,135 | $ | 1,308,357 | ||||||||||||||
December 31, 2022 | $ | 1,413,499 | $ | 1,015,284 | $ | 1,582,899 | ||||||||||||||
September 30, 2022 | $ | 1,692,516 | $ | 1,528,931 | $ | 1,935,464 | ||||||||||||||
Basis Point Changes in Interest Rates | Increase (Decrease) in Interest Income | Increase (Decrease) in Interest Expense | Increase (Decrease) in Net Interest Income | Percentage Change in Net Interest Income | ||||||||||||||||||||||
Down 50 basis points(1) | $ | (39,375) | $ | (26,971) | $ | (12,404) | (3.7) | % | ||||||||||||||||||
Down 25 basis points(1) | $ | (19,688) | $ | (13,486) | $ | (6,202) | (1.8) | % | ||||||||||||||||||
No change | — | — | — | — | ||||||||||||||||||||||
Up 25 basis points | $ | 19,688 | $ | 13,486 | $ | 6,202 | 1.8 | % | ||||||||||||||||||
Up 50 basis points | $ | 39,375 | $ | 26,971 | $ | 12,404 | 3.7 | % |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs(1) | ||||||||||||||||||||||
July 1 - July 31, 2023 | 763,786 | $ | 24.75 | 763,786 | — | |||||||||||||||||||||
August 1 - August 31, 2023 | 1,039,180 | $ | 24.90 | 1,039,180 | — | |||||||||||||||||||||
September 1 - September 30, 2023 | 1,106,110 | $ | 24.47 | 1,106,110 | — | |||||||||||||||||||||
Total | 2,909,076 | 2,909,076 | — |
3.1 | ||||||||
3.2 | ||||||||
3.3 | ||||||||
3.4 | ||||||||
3.5 | ||||||||
4.1 | ||||||||
10.1 | ||||||||
10.2 | ||||||||
31.1* | ||||||||
31.2* | ||||||||
32.1+ | ||||||||
101.INS* | Inline XBRL Instance Document. | |||||||
101.SCH* | Inline XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
101.LAB* | Inline XBRL Taxonomy Extension Labels Linkbase Document. | |||||||
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
104* | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
FS CREDIT REAL ESTATE INCOME TRUST, INC. | |||||
By: | /s/ MICHAEL C. FORMAN | ||||
Michael C. Forman Chief Executive Officer (Principal Executive Officer) | |||||
By: | /s/ CHRISTOPHER CONDELLES | ||||
Christopher Condelles Chief Financial Officer (Principal Accounting and Financial Officer) | |||||
/S/ MICHAEL C. FORMAN | ||
Michael C. Forman | ||
Chief Executive Officer |
/S/ CHRISTOPHER CONDELLES | ||
Christopher Condelles | ||
Chief Financial Officer |
/S/ MICHAEL C. FORMAN | ||
Michael C. Forman | ||
Chief Executive Officer | ||
/S/ CHRISTOPHER CONDELLES | ||
Christopher Condelles | ||
Chief Financial Officer |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
||
---|---|---|---|---|
Assets | ||||
CECL reserve on Loans receivable, held-for-investment | $ 72,270 | $ 0 | ||
CECL reserve on Mortgage-backed securities held-to-maturity | 71 | 0 | ||
Credit Loss Allowance | $ 9,674 | $ 0 | ||
Stockholders' equity | ||||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | ||
Preferred stock, shares issued (in shares) | 125 | 125 | ||
Preferred stock, shares outstanding (in shares) | 125 | 125 | ||
Total assets | [1] | $ 8,784,408 | $ 8,337,816 | |
Total liabilities | [1] | 6,019,274 | 6,020,659 | |
Variable Interest Entity, Primary Beneficiary | ||||
Stockholders' equity | ||||
Total assets | 5,892,207 | 5,896,039 | ||
Total liabilities | $ 4,616,997 | $ 4,640,998 | ||
Common Stock Class F | ||||
Stockholders' equity | ||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized (in shares) | 125,000,000 | 125,000,000 | ||
Common stock, shares issued (in shares) | 755,420 | 857,710 | ||
Common stock, shares outstanding (in shares) | 755,420 | 857,710 | ||
Common Stock Class Y | ||||
Stockholders' equity | ||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized (in shares) | 125,000,000 | 125,000,000 | ||
Common stock, shares issued (in shares) | 906,648 | 906,648 | ||
Common stock, shares outstanding (in shares) | 906,648 | 906,648 | ||
Common Stock Class T | ||||
Stockholders' equity | ||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized (in shares) | 125,000,000 | 125,000,000 | ||
Common stock, shares issued (in shares) | 1,378,393 | 1,600,878 | ||
Common stock, shares outstanding (in shares) | 1,378,393 | 1,600,878 | ||
Common Stock Class S | ||||
Stockholders' equity | ||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized (in shares) | 125,000,000 | 125,000,000 | ||
Common stock, shares issued (in shares) | 64,127,317 | 54,908,336 | ||
Common stock, shares outstanding (in shares) | 64,127,317 | 54,908,336 | ||
Common Stock Class D | ||||
Stockholders' equity | ||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized (in shares) | 125,000,000 | 125,000,000 | ||
Common stock, shares issued (in shares) | 675,550 | 742,999 | ||
Common stock, shares outstanding (in shares) | 675,550 | 742,999 | ||
Common Stock Class M | ||||
Stockholders' equity | ||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized (in shares) | 125,000,000 | 125,000,000 | ||
Common stock, shares issued (in shares) | 4,792,423 | 4,645,072 | ||
Common stock, shares outstanding (in shares) | 4,792,423 | 4,645,072 | ||
Common Stock Class I | ||||
Stockholders' equity | ||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 | ||
Common stock, shares issued (in shares) | 46,397,317 | 34,011,164 | ||
Common stock, shares outstanding (in shares) | 46,397,317 | 34,011,164 | ||
Mortgage-Backed Securities | ||||
Assets | ||||
CECL reserve on Mortgage-backed securities held-to-maturity | $ 71 | $ 0 | ||
Credit Loss Allowance | $ 9,674 | $ 0 | ||
|
Unaudited Consolidated Statements of Operations - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Net interest income | ||||
Interest income | $ 192,867 | $ 111,575 | $ 551,164 | $ 226,436 |
Less: Interest expense | (110,572) | (59,107) | (315,461) | (104,506) |
Interest income on mortgage loans held in securitization trusts | 4,363 | 0 | 11,590 | 0 |
Less: Interest expense on mortgage obligations issued by securitization trusts | (3,425) | 0 | (9,283) | 0 |
Net interest income | 83,233 | 52,468 | 238,010 | 121,930 |
Other expenses | ||||
Management fee | 9,092 | 6,629 | 25,514 | 15,825 |
Performance fee | 6,354 | 3,904 | 17,742 | 4,056 |
General and administrative expenses | 10,008 | 5,685 | 30,446 | 14,528 |
Less: Expense limitation | 0 | 0 | (148) | 0 |
Add: Expense recoupment to sponsor | 753 | 256 | 753 | 3,026 |
Net other expenses | 26,207 | 16,474 | 74,307 | 37,435 |
Other income (loss) | ||||
(Increase) decrease in current expected credit loss reserve | 101 | 0 | (42,130) | 0 |
Income (loss) from rental operations, net | (234) | (1,068) | (1,931) | (1,068) |
Net change in unrealized gain on interest rate cap | (762) | 1,758 | (1,370) | 309 |
Net realized gain (loss) on extinguishment of debt | 265 | 0 | 265 | 0 |
Net change in unrealized gain (loss) on mortgage-backed securities, fair value option | 45 | 0 | 325 | 0 |
Unrealized gain (loss) on mortgage loans and obligations held in securitization trusts, net | (213) | 0 | (742) | 0 |
Total other income (loss) | (798) | 690 | (45,583) | (759) |
Net income before taxes | 56,228 | 36,684 | 118,120 | 83,736 |
Income tax expense | (274) | (348) | (2,260) | (831) |
Net income | 55,954 | 36,336 | 115,860 | 82,905 |
Preferred stock dividends | (3) | (3) | (11) | (11) |
Net income attributable to FS Credit Real Estate Income Trust, Inc.—diluted | 55,951 | 36,333 | 115,849 | 82,894 |
Net income attributable to FS Credit Real Estate Income Trust, Inc.—basic | $ 55,951 | $ 36,333 | $ 115,849 | $ 82,894 |
Per share information—basic and diluted | ||||
Net income per share of common stock—basic (in dollars per share) | $ 0.48 | $ 0.42 | $ 1.04 | $ 1.18 |
Net income per share of common stock—diluted (in dollars per share) | $ 0.48 | $ 0.42 | $ 1.04 | $ 1.18 |
Weighted average common stock outstanding—basic (in shares) | 116,419,969 | 86,518,645 | 111,391,684 | 70,104,149 |
Weight average common stock outstanding—diluted (in shares) | 116,419,969 | 86,518,645 | 111,391,684 | 70,104,149 |
Unaudited Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 55,954 | $ 36,336 | $ 115,860 | $ 82,905 |
Other comprehensive income | ||||
Net change in unrealized gain (loss) on mortgage-backed securities available-for-sale | 2,242 | (382) | 3,777 | (3,660) |
Total other comprehensive income (loss) | 2,242 | (382) | 3,777 | (3,660) |
Comprehensive income | $ 58,196 | $ 35,954 | $ 119,637 | $ 79,245 |
Unaudited Consolidated Statements of Changes in Equity - USD ($) $ in Thousands |
Total |
Revision of Prior Period, Accounting Standards Update, Adjustment |
Common Stock |
Common Stock
Common Stock Class F
|
Common Stock
Common Stock Class F
Par Value
|
Common Stock
Common Stock Class Y
|
Common Stock
Common Stock Class Y
Par Value
|
Common Stock
Common Stock Class T
|
Common Stock
Common Stock Class T
Par Value
|
Common Stock
Common Stock Class S
|
Common Stock
Common Stock Class S
Par Value
|
Common Stock
Common Stock Class D
|
Common Stock
Common Stock Class D
Par Value
|
Common Stock
Common Stock Class M
|
Common Stock
Common Stock Class M
Par Value
|
Common Stock
Common Stock Class I
|
Common Stock
Common Stock Class I
Par Value
|
Additional Paid-In Capital |
Accumulated Other Comprehensive Income (Loss) |
[1] | Retained Earnings (Accumulated Deficit) |
Retained Earnings (Accumulated Deficit)
Revision of Prior Period, Accounting Standards Update, Adjustment
|
||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Beginning balance at Dec. 31, 2021 | $ 973,340 | $ 971,310 | $ 22,138 | $ 9 | $ 22,371 | $ 9 | $ 33,862 | $ 14 | $ 531,150 | $ 228 | $ 15,945 | $ 6 | $ 66,836 | $ 29 | $ 279,008 | $ 114 | $ 969,558 | $ 86 | $ 3,287 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Common stock issued | 1,311,962 | 1,311,962 | 0 | 0 | 4,699 | 2 | 760,752 | 302 | 2,840 | 1 | 40,238 | 14 | 503,433 | 208 | 1,311,435 | |||||||||
Distributions declared | (78,643) | (78,643) | ||||||||||||||||||||||
Proceeds from distribution reinvestment plan | 37,838 | 37,838 | 554 | 0 | 793 | 22,106 | 9 | 277 | 1,820 | 1 | 12,288 | 5 | 37,823 | |||||||||||
Redemptions of common stock | (99,944) | (99,944) | (1,870) | 0 | (835) | (57,119) | (23) | (549) | (3,840) | (2) | (35,731) | (15) | (99,904) | |||||||||||
Stockholder servicing fees | (61,558) | (61,558) | ||||||||||||||||||||||
Offering costs | (9,869) | (9,869) | ||||||||||||||||||||||
Performance contingent rights issued | 11,409 | 11,409 | ||||||||||||||||||||||
Net income | 82,905 | 82,905 | ||||||||||||||||||||||
Dividends on preferred stock | (11) | (11) | ||||||||||||||||||||||
Other comprehensive income (loss) | (3,660) | (3,660) | ||||||||||||||||||||||
Ending balance at Sep. 30, 2022 | $ 2,163,769 | 2,159,608 | 20,822 | 9 | 22,371 | 9 | 38,284 | 16 | 1,197,986 | 516 | 18,013 | 7 | 99,043 | 42 | 763,089 | 312 | 2,158,894 | (3,574) | 7,538 | |||||
Accounting Standards Update [Extensible Enumeration] | Impact of ASU 2016-13 Adoption | |||||||||||||||||||||||
Beginning balance at Dec. 31, 2021 | $ 973,340 | 971,310 | 22,138 | 9 | 22,371 | 9 | 33,862 | 14 | 531,150 | 228 | 15,945 | 6 | 66,836 | 29 | 279,008 | 114 | 969,558 | 86 | 3,287 | |||||
Ending balance at Dec. 31, 2022 | 2,317,157 | $ (41,521) | 2,315,378 | 21,008 | 9 | 22,371 | 9 | 38,473 | 16 | 1,274,345 | 549 | 18,417 | 7 | 108,522 | 46 | 832,242 | 340 | 2,314,639 | (11,906) | 13,448 | $ (41,521) | |||
Beginning balance at Jun. 30, 2022 | 1,821,230 | 9 | 9 | 15 | 446 | 7 | 37 | 245 | 1,820,033 | (3,192) | 3,621 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Common stock issued | 381,818 | 1 | 76 | 5 | 72 | 381,664 | ||||||||||||||||||
Distributions declared | (32,416) | (32,416) | ||||||||||||||||||||||
Proceeds from distribution reinvestment plan | 15,943 | 4 | 1 | 2 | 15,936 | |||||||||||||||||||
Redemptions of common stock | (43,173) | (10) | (1) | (7) | (43,155) | |||||||||||||||||||
Stockholder servicing fees | (15,130) | (15,130) | ||||||||||||||||||||||
Offering costs | (2,870) | (2,870) | ||||||||||||||||||||||
Performance contingent rights issued | 2,416 | 2,416 | ||||||||||||||||||||||
Net income | 36,336 | 36,336 | ||||||||||||||||||||||
Dividends on preferred stock | (3) | (3) | ||||||||||||||||||||||
Other comprehensive income (loss) | (382) | (382) | ||||||||||||||||||||||
Ending balance at Sep. 30, 2022 | 2,163,769 | 2,159,608 | 20,822 | 9 | 22,371 | 9 | 38,284 | 16 | 1,197,986 | 516 | 18,013 | 7 | 99,043 | 42 | 763,089 | 312 | 2,158,894 | (3,574) | 7,538 | |||||
Beginning balance at Dec. 31, 2022 | 2,317,157 | $ (41,521) | 2,315,378 | 21,008 | 9 | 22,371 | 9 | 38,473 | 16 | 1,274,345 | 549 | 18,417 | 7 | 108,522 | 46 | 832,242 | 340 | 2,314,639 | (11,906) | 13,448 | $ (41,521) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Common stock issued | 685,403 | 685,403 | 0 | 0 | 1,812 | 322,941 | 129 | 3,275 | 18,333 | 6 | 339,042 | 149 | 685,119 | |||||||||||
Distributions declared | (141,076) | (141,076) | ||||||||||||||||||||||
Proceeds from distribution reinvestment plan | 68,670 | 68,670 | 559 | 0 | 838 | 37,215 | 15 | 318 | 2,088 | 1 | 27,652 | 13 | 68,641 | |||||||||||
Redemptions of common stock | (240,434) | (240,434) | (2,862) | (1) | 0 | (2,723) | (2) | (127,360) | (52) | (929) | (10,015) | (5) | (96,545) | (38) | (240,336) | |||||||||
Stockholder servicing fees | (18,214) | (18,214) | ||||||||||||||||||||||
Offering costs | (5,159) | (5,159) | ||||||||||||||||||||||
Restricted stock units issued | 20,682 | 20,682 | ||||||||||||||||||||||
Net income | 115,860 | 115,860 | ||||||||||||||||||||||
Dividends on preferred stock | (11) | (11) | ||||||||||||||||||||||
Other comprehensive income (loss) | 3,777 | 3,777 | ||||||||||||||||||||||
Ending balance at Sep. 30, 2023 | 2,765,134 | 2,810,803 | 18,448 | 8 | 22,371 | 9 | 32,904 | 14 | 1,487,838 | 641 | 16,727 | 7 | 111,970 | 48 | 1,120,545 | 464 | 2,825,372 | (8,129) | (53,300) | |||||
Beginning balance at Jun. 30, 2023 | 2,630,503 | 7 | 9 | 15 | 617 | 7 | 48 | 435 | 2,697,971 | (10,371) | (58,235) | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Common stock issued | 171,962 | 35 | 2 | 34 | 171,891 | |||||||||||||||||||
Distributions declared | (51,016) | (51,016) | ||||||||||||||||||||||
Proceeds from distribution reinvestment plan | 25,196 | 5 | 6 | 25,185 | ||||||||||||||||||||
Redemptions of common stock | (71,309) | 1 | (1) | (16) | (2) | (11) | (71,280) | |||||||||||||||||
Stockholder servicing fees | (4,464) | (4,464) | ||||||||||||||||||||||
Offering costs | (1,297) | (1,297) | ||||||||||||||||||||||
Restricted stock units issued | 7,366 | 7,366 | ||||||||||||||||||||||
Net income | 55,954 | 55,954 | ||||||||||||||||||||||
Dividends on preferred stock | (3) | (3) | ||||||||||||||||||||||
Other comprehensive income (loss) | 2,242 | 2,242 | ||||||||||||||||||||||
Ending balance at Sep. 30, 2023 | $ 2,765,134 | $ 2,810,803 | $ 18,448 | $ 8 | $ 22,371 | $ 9 | $ 32,904 | $ 14 | $ 1,487,838 | $ 641 | $ 16,727 | $ 7 | $ 111,970 | $ 48 | $ 1,120,545 | $ 464 | $ 2,825,372 | $ (8,129) | $ (53,300) | |||||
|
Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Cash flows from operating activities | ||
Net income | $ 115,860 | $ 82,905 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ||
Performance contingent rights issued | 0 | 11,409 |
Restricted stock units | 20,682 | 0 |
Amortization of deferred fees on loans and debt securities | (11,636) | (3,616) |
Amortization of deferred financing costs and discount | 16,059 | 7,884 |
Increase in current expected credit loss reserve | 42,130 | 0 |
Net unrealized (gain) loss on valuation of interest rate cap | 1,370 | (309) |
Depreciation and amortization | 5,501 | 1,839 |
Net unrealized (gain) loss on mortgage-backed securities, fair value option | (325) | 0 |
Net unrealized (gain) loss on mortgage loans and obligations held in securitization trusts | 742 | 0 |
Changes in assets and liabilities | ||
Reimbursement due from (due to) sponsor | 605 | 0 |
Interest receivable | (3,747) | (15,580) |
Other assets | 1,756 | (9,418) |
Due to related party | 753 | 194 |
Interest payable | 9,343 | 11,236 |
Other liabilities | 2,526 | 9,554 |
Net cash provided by (used in) operating activities | 201,619 | 96,098 |
Cash flows used in investing activities | ||
Origination and fundings of loans receivable | (1,014,971) | (3,731,304) |
Principal collections from loans receivable, held-for-investment | 586,298 | 489,846 |
Exit and extension fees received on loans receivable, held-for-investment | 851 | 472 |
Purchases of mortgage-backed securities, at fair value | (86,636) | (150,598) |
Principal repayments of mortgage-backed securities, at fair value | 22,387 | 9,169 |
Purchases of mortgage-backed securities held-to-maturity | 0 | (48,536) |
Acquisition of real estate | 0 | (193,868) |
Capital improvements to real estate | (128) | 0 |
Net cash provided by (used in) investing activities | (492,199) | (3,624,819) |
Cash flows from financing activities | ||
Issuance of common stock | 685,403 | 1,311,962 |
Redemptions of common stock | (273,855) | (76,046) |
Stockholder distributions paid | (70,506) | (37,959) |
Stockholder servicing fees paid | (10,074) | (6,385) |
Offering costs paid | (5,159) | (11,204) |
Borrowing under mortgage note payable | 0 | 124,700 |
Borrowings under repurchase agreements | 122,261 | 1,667,021 |
Repayments under repurchase agreements | (640,322) | (1,688,409) |
Borrowings under credit facilities | 807,084 | 1,276,366 |
Repayments under credit facilities | (268,066) | (771,451) |
Proceeds from issuance of collateralized loan obligations | 0 | 1,971,137 |
Repayment of collateralized loan obligations | (40,029) | (109,631) |
Payment of deferred financing costs | (2,900) | (33,746) |
Net cash provided by (used in) financing activities | 303,837 | 3,616,355 |
Total increase (decrease) in cash, cash equivalents and restricted cash | 13,257 | 87,634 |
Cash, cash equivalents and restricted cash at beginning of period | 201,618 | 85,808 |
Cash, cash equivalents and restricted cash at end of period | 214,875 | 173,442 |
Supplemental disclosure of cash flow information and non-cash financial activities | ||
Payments of interest | 290,059 | 85,386 |
Accrued stockholder servicing fee | 8,140 | 55,173 |
Distributions payable | 8,717 | 5,789 |
Reinvestment of stockholder distributions | 68,670 | 37,838 |
Payable for shares repurchased | 27,067 | 28,125 |
Loan principal payments held by servicer | 46,316 | 611 |
Payable for investments purchased | 6,663 | 0 |
Purchase of mortgage loans held in securitization trusts at fair value | (6,663) | 0 |
Mortgage obligations issued by securitization trusts, at fair value | $ 298,170 | $ 0 |
Principal Business and Organization |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principal Business and Organization | Principal Business and Organization FS Credit Real Estate Income Trust, Inc., or the Company, was incorporated under the general corporation laws of the State of Maryland on November 7, 2016 and formally commenced investment operations on September 13, 2017. The Company is currently conducting a public offering of up to $2,750,000 of its Class T, Class S, Class D, Class M and Class I shares of common stock pursuant to a registration statement on Form S-11 filed with the Securities and Exchange Commission, or SEC, consisting of up to $2,500,000 in shares in its primary offering and up to $250,000 in shares pursuant to its distribution reinvestment plan. The Company is also conducting a private offering of its Class I common stock and previously conducted private offerings of its Class F common stock and Class Y common stock. The Company is managed by FS Real Estate Advisor, LLC, or FS Real Estate Advisor, a subsidiary of the Company’s sponsor, Franklin Square Holdings, L.P., which does business as FS Investments, or FS Investments, a national sponsor of alternative investment funds designed for the individual investor. FS Real Estate Advisor has engaged Rialto Capital Management, LLC, or Rialto, to act as its sub-adviser. The Company has elected to be taxed as a real estate investment trust, or REIT, for U.S. federal income tax purposes commencing with its taxable year ended December 31, 2017. The Company intends to be an investment vehicle of indefinite duration focused on real estate debt investments and other real estate-related assets. The shares of common stock are generally intended to be sold and repurchased by the Company on a continuous basis. The Company intends to conduct its operations so that it is not required to register under the Investment Company Act of 1940, as amended, or the 1940 Act. The Company’s primary investment objectives are to: provide current income in the form of regular, stable cash distributions to achieve an attractive dividend yield; preserve and protect invested capital; realize appreciation in net asset value, or NAV, from proactive investment management and asset management; and provide an investment alternative for stockholders seeking to allocate a portion of their long-term investment portfolios to commercial real estate debt with lower volatility than public real estate companies.
|
Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation: The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP. The unaudited consolidated financial statements include both the Company’s accounts and the accounts of its wholly owned subsidiaries and variable interest entities, or VIEs, of which the Company is the primary beneficiary, as of September 30, 2023. All significant intercompany transactions have been eliminated in consolidation. In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. The Company has evaluated the impact of subsequent events through the date the unaudited consolidated financial statements were issued. Reclassifications: Certain amounts in the unaudited consolidated financial statements as of and for the three and nine months ended September 30, 2023 and the audited consolidated financial statements as of and for the year ended December 31, 2022 may have been reclassified to conform to the classifications used to prepare the unaudited consolidated financial statements as of and for the three and nine months ended September 30, 2023. Use of Estimates: The preparation of the unaudited consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Principles of Consolidation: Financial Accounting Standards Board, or FASB, Accounting Standards Codification Topic 810—Consolidation, or ASC Topic 810, provides guidance on the identification of a VIE (an entity for which control is achieved through means other than voting rights) and the determination of which business enterprise, if any, should consolidate the VIE. An entity is considered a VIE if any of the following applies: (1) the equity investors (if any) lack one or more of the essential characteristics of a controlling financial interest; (2) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support; or (3) the equity investors have voting rights that are not proportionate to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. The Company consolidates VIEs in which it is considered to be the primary beneficiary. The primary beneficiary is defined as the entity having both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the VIE’s performance; and (2) the obligation to absorb losses and right to receive the returns from the VIE that would be significant to the VIE. The Company determines whether it is the primary beneficiary of an entity subject to consolidation based on a qualitative assessment of the VIE’s capital structure, contractual terms, nature of the VIE’s operations and purpose and the Company’s relative exposure to the related risks of the VIE on the date it becomes initially involved in the VIE. The Company reassesses its VIE determination with respect to an entity on an ongoing basis. For the Company's consolidated securitization VIEs, the third party ownership interests are reflected as liabilities in the Company's consolidated balance sheet because the beneficial interests payable to these third parties are legally issued in the form of debt. The Company's presentation of net income attributes earnings to controlling and non-controlling interests. Refer to Note 10 for additional discussion of the Company's VIEs. Cash, Cash Equivalents and Restricted Cash: The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company invests its cash in overnight institutional money market funds. As of September 30, 2023 and 2022, the Company's investment in overnight institutional money market funds was $138,344 and $49,725, respectively. The Company's uninvested cash is maintained with high credit quality financial institutions, which are members of the Federal Deposit Insurance Corporation. The Company's cash is held with major financial institutions and may at times exceed federally insured limits. Restricted cash primarily represents cash held in an account to fund additional collateral interests within the Company's collateralized loan obligations. The following table provides a reconciliation of cash, cash equivalents and restricted cash in the Company’s unaudited consolidated balance sheets to the total amount shown in the Company’s unaudited consolidated statements of cash flows:
Loans Receivable: The Company originates and purchases commercial real estate debt and related instruments generally to be held as long-term investments at amortized cost. Loans that the Company originates or purchases that the Company is unable to hold, or intends to sell or otherwise dispose of, in the foreseeable future are classified as held-for-sale and are carried at the lower of amortized cost or fair value. The Company's held-for-sale securities are subject to the adoption of ASU 2016-13, as discussed below. Mortgage-backed Securities: Mortgage-backed securities are classified as held-to-maturity or available-for-sale or accounted for under the fair value option. The Company determines the appropriate classification of its securities at the time they are acquired and evaluates the appropriateness of such classifications at each balance sheet date. Mortgage-backed securities are classified as held-to-maturity when the Company intends to, and has the ability to hold until maturity. Held-to-maturity securities are stated at amortized cost on the consolidated balance sheets. The Company’s remaining mortgage-backed securities are classified as either available-for-sale or accounted for under the fair value option and are reported at fair value on the consolidated balance sheets as components of Mortgage-backed securities, at fair value. The Company elected the fair value option for all mortgage-backed securities acquired during the three and nine months ended September 30, 2023. Changes in fair value for mortgage-backed securities accounted for under the fair value option are recorded in the consolidated statements of operations as a component of Net change in unrealized gain (loss) on mortgage-backed securities, fair value option. The Company chose to elect the fair value option in order to simplify the accounting treatment for its investment securities. The fair value option provides an option to elect fair value as an alternative measurement for selected financial instruments. The fair value option may be elected only upon the occurrence of certain specified events, including when the Company enters into an eligible firm commitment, at initial recognition of the financial instrument, as well as upon a business combination or consolidation of a subsidiary. The election is irrevocable unless a new election event occurs. Prior to the three and nine months ended September 30, 2023, all mortgage-backed securities acquired that were not classified as held-to-maturity were classified as available-for-sale, stated at fair value and the changes in fair value are recorded in other comprehensive income. The Company’s held-to-maturity and available-for-sale securities are subject to the adoption of ASU 2016-13, as discussed below. Credit Losses: ASU 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326), or ASU 2016-13, became effective for the Company on January 1, 2023. ASU 2016-13 significantly changes how entities measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. ASU 2016-13 replaces the previous incurred loss model with a current expected credit loss (“CECL”) model for instruments measured at amortized cost. The CECL model applies to the Company's loans receivable, held-for-investment and its mortgage-backed securities held-to-maturity which are carried at amortized cost, including future funding commitments and accrued interest receivable related to those loans and securities. However, as permitted by ASC Topic 326, the Company has elected not to measure an allowance for credit losses on accrued interest receivable (which is classified separately on its consolidated balance sheets), but rather write off in a timely manner by reversing interest income and/or cease accruing interest that would likely be uncollectible. CECL requires an entity to consider historical loss experience, current conditions, and a reasonable and supportable forecast of the macroeconomic environment. Considering the lack of historical company data related to any realized loan losses since its inception, the Company elected to estimate its general CECL reserve by using a probability-weighted analytical model that considers the likelihood of default and loss-given-default for each individual loan. The credit loss model utilizes historical loss rates derived from a third party commercial real estate loan database with historical loan loss data beginning in 1998. The Company provides specific loan-level inputs which include loan-to-value, principal balances, property type, location, coupon, origination year, term, subordination, expected repayment dates, and property net operating income. The Company also considers qualitative and environmental factors, including, but not limited to, macroeconomic forecasts and business conditions and trends, concentration of credit and changes in the level of such concentrations. The reasonable and supportable forecast period is followed by an immediate reversion period back to historical loss rates. The Company's loans typically include commitments to fund incremental proceeds to its borrowers over the life of the loan, which future funding commitments are also subject to the CECL model. The CECL reserve related to future loan fundings is recorded as a component of Other liabilities on its consolidated balance sheets. This CECL reserve is estimated using the same process outlined above for its outstanding loan balances, and changes in this component of the CECL reserve will similarly impact its consolidated net income. For both the funded and unfunded portions of its loans, the Company considers its internal risk rating of each loan as the primary credit quality indicator underlying the assessment. FS Real Estate Advisor and Rialto perform a quarterly review of the Company's portfolio of loans. In connection with this review, FS Real Estate Advisor and Rialto assess the risk factors of each loan and assign a risk rating based on a variety of factors, including, without limitation, loan-to-value ratio, or LTV, debt yield, property type, geographic and local market dynamics, physical condition, cash flow volatility, leasing and tenant profile, loan structure and exit plan, and project sponsorship. Based on a 5-point scale, the Company's loans are rated "1" through "5," from less risk to greater risk, which ratings are defined as follows:
Impairment is indicated when it is deemed probable that the Company will not be able to collect all amounts due to it pursuant to the contractual terms of the loan. If a loan is determined to be impaired, the Company records the impairment as a specific CECL reserve. For determining a specific CECL reserve, financial instruments are assessed outside of the CECL model on an individual basis. For collateral dependent loans that the Company determines foreclosure of the collateral is probable, the Company measures the expected losses based on the differences between the fair value of the collateral and the amortized cost basis of the loan as of the measurement date. For collateral dependent loans where the Company determine foreclosure is not probable, a practical expedient to estimate expected losses is applied using the difference between the collateral’s fair value (less costs to sell the asset if repayment is expected through the sale of the collateral) and the amortized cost basis of the loan. These valuations require significant judgments, which include assumptions regarding capitalization rates, leasing, creditworthiness of major tenants, occupancy rates, availability of financing, exit plan, loan sponsorship, actions of other lenders, and other factors deemed necessary by FS Real Estate Advisor and Rialto. Actual losses, if any, could ultimately differ from these estimates. The Company adopted ASU 2016-13 using the modified-retrospective method for all financial assets measured at amortized cost. Prior to its adoption, the Company had no loan loss provisions on its consolidated balance sheets. The Company recorded a cumulative-effect adjustment to the opening retained earnings in its unaudited consolidated statement of changes in equity as of January 1, 2023. The following table details the impact of this adoption:
Separate provisions of ASC Topic 326 apply to the Mortgage-backed securities available-for-sale, which are carried at fair value with unrealized gains and losses reported as a component of Accumulated other comprehensive income (loss). The Company is required to establish an initial credit loss allowance for those available-for-sale securities that are purchased with credit deterioration (“PCD”) by grossing up the amortized cost basis of each security and providing an offsetting credit loss allowance for the difference between expected cash flows and contractual cash flows, both on a present value basis. As of the January 1, 2023 effective date, no such credit loss allowance gross-up was required on available-for-sale debt securities with PCD. The Company uses a discounted cash flow method to estimate and recognize a credit loss allowance on its available-for-sale securities. The credit loss allowance represents the difference between the security's amortized cost basis and the present value of expected cash flows. The credit loss allowance is limited to the difference between the security's fair value and its amortized cost. Changes in the credit loss allowance are recognized immediately in earnings as a component of (Increase) decrease in current expected credit loss reserve. Real Estate: In accordance with the guidance for business combinations, the Company determines whether the acquisition of a property qualifies as a business combination, which requires that the assets acquired and liabilities assumed constitute a business. If the property acquired is not a business, the Company accounts for the transaction as an asset acquisition. The guidance for business combinations states that when substantially all the fair value of the gross assets to be acquired is concentrated in a single identifiable asset or group of similar identifiable assets, the asset or set of assets is not a business. The one property acquisition to date was acquired in 2022 and was accounted for as an asset acquisition. Upon the acquisition of a property, the Company assesses the fair value of acquired tangible and intangible assets (including land, buildings, tenant improvements, “above-market” and “below-market” leases, acquired in-place leases, other identified intangible assets and assumed liabilities) and allocates the purchase price to the acquired assets and assumed liabilities. The Company assesses and considers fair value based on estimated cash flow projections that utilize discount and/or capitalization rates that it deems appropriate, as well as other available market information. Estimates of future cash flows are based on several factors including the historical operating results, known and anticipated trends and market and economic conditions. The Company capitalizes acquisition-related costs associated with asset acquisitions. The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant. The Company records acquired in-place lease values based on the Company’s evaluation of the specific characteristics of each tenant’s lease. The Company will record acquired above-market and below-market leases at their fair values which represents the present value of the difference between contractual rents of acquired leases and market rents at the time of the acquisition for the remaining lease term, discounted for tenant credit risks. The Company also considers an allocation of purchase price of other acquired intangibles, including acquired in-place leases that may have a customer relationship intangible value, including (but not limited to) the nature and extent of the existing relationship with the tenants, the tenants’ credit quality and expectations of lease renewals. Based on its acquisition to date, the Company’s allocation to customer relationship intangible assets has not been material. Intangible assets and intangible liabilities are recorded as a component of other assets and other liabilities, respectively, on the Company’s consolidated balance sheets. The amortization of acquired above-market, below-market, and in-place leases is recorded as an adjustment to rental operations, net, on the Company’s unaudited consolidated statements of operations. The cost of buildings and improvements includes the purchase price of the Company’s properties and any acquisition-related costs, along with any subsequent improvements to such properties. The Company’s investments in real estate are stated at cost and are generally depreciated on a straight-line basis over the estimated useful lives of the assets as follows:
The Company’s management reviews its real estate properties for impairment each quarter or when there is an event or change in circumstances that indicates an impaired value. Since the impairment model considers real estate properties to be “long-lived assets to be held and used,” cash flows to determine whether an asset has been impaired are undiscounted. Accordingly, the Company’s strategy of holding properties over the long term directly decreases the likelihood of recording an impairment loss. If the Company’s strategy changes or market conditions otherwise dictate an earlier sale date, an impairment loss may be recognized and such loss could be material to the Company’s results. If the Company determines that an impairment has occurred, the affected assets must be reduced to their fair value. During the periods presented, no such impairment occurred. Fair Value of Financial Instruments: Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, or ASC Topic 820, defines fair value, establishes a framework for measuring fair value, and requires certain disclosures about fair value measurements under GAAP. Specifically, this guidance defines fair value based on exit price, or the price that would be received upon the sale of an asset or the transfer of a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 also establishes a fair value hierarchy that prioritizes and ranks the level of market price observability used in measuring financial instruments. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument, and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination, as follows: Level 1: Generally includes only unadjusted quoted prices that are available in active markets for identical financial instruments as of the reporting date. Level 2: Pricing inputs include quoted prices in active markets for similar instruments, quoted prices in less active or inactive markets for identical or similar instruments where multiple price quotes can be obtained, and other observable inputs, such as interest rates, yield curves, credit risks, and default rates. Level 3: Pricing inputs are unobservable for the financial instruments and include situations where there is little, if any, market activity for the financial instrument. 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. The estimated value of each asset reported at fair value using Level 3 inputs is determined by an internal committee comprised of members of senior management of FS Real Estate Advisor. Certain of the Company's assets are reported at fair value either (i) on a recurring basis, as of each quarter-end, or (ii) on a nonrecurring basis, as a result of impairment or other events. The Company generally values its assets recorded at fair value by either (i) discounting expected cash flows based on assumptions regarding the collection of principal and interest and estimated market rates, or (ii) obtaining assessments from third-party dealers. For collateral-dependent loans that are identified as impaired, the Company measures impairment by comparing FS Real Estate Advisor's estimation of fair value of the underlying collateral, less costs to sell, to the book value of the respective loan. These valuations may require significant judgments, which include assumptions regarding capitalization rates, leasing, creditworthiness of major tenants, occupancy rates, availability of financing, exit plan, loan sponsorship, actions of other lenders, and other factors deemed necessary by FS Real Estate Advisor and Rialto. The Company is also required by GAAP to disclose fair value information about financial instruments that are not otherwise reported at fair value in the Company's consolidated balance sheets, to the extent it is practicable to estimate a fair value for those instruments. These disclosure requirements exclude certain financial instruments and all non-financial instruments. The Company elected the fair value option for initial and subsequent recognition of the assets and liabilities of its consolidated securitization mortgage loans held in securitization trusts and the related CMBS investments. Interest income and interest expense associated with these loans are presented separately on the unaudited consolidated statements of operations. The Company separately presents the assets and liabilities of its consolidated securitization loans as individual line items on its consolidated balance sheets. The liabilities of its consolidated securitization loans consist solely of obligations to the bondholders of the related trusts, and are thus presented as a single line item entitled “Mortgage obligations issued by securitization trusts.” The assets of its consolidated securitization loans consist principally of loans. These assets in the aggregate are likewise presented as a single line item entitled “Mortgage loans held in securitization trusts.” The residual difference shown on its unaudited consolidated statements of operations in the line item “Unrealized gain (loss) on mortgage loans and obligations held in securitization trusts” represents the Company's beneficial interest in the mortgage loans. The securitization mortgage loan assets as a whole can only be used to settle the obligations of the consolidated mortgage loans. The assets of the Company's securitization mortgage loans are not individually accessible by the bondholders, which creates inherent limitations from a valuation perspective. The securitization mortgage loans in which the Company invests are “static”; that is, no reinvestment is permitted, and there is no active management of the underlying assets. In determining the fair value of the assets and liabilities of the securitization mortgage loans, the Company maximizes the use of observable inputs over unobservable inputs. Liabilities of the consolidated mortgage obligations: The Company's consolidated mortgage obligations generally represent bonds that are not owned by the Company directly. The majority of these are either traded in the marketplace or can be analogized to similar securities that are traded in the marketplace. For these liabilities, pricing is considered to be Level 2, where the valuation is based upon quoted prices for similar instruments traded in active markets. The Company generally utilizes third party pricing service providers for valuing these liabilities. In order to determine whether to utilize the valuations provided by third parties, the Company conducts an ongoing evaluation of their valuation methodologies and processes, as well as a review of the individual valuations themselves. In evaluating third party pricing for reasonableness, the Company considers a variety of factors, including market transaction information for the particular bond, market transaction information for bonds within the same trust, market transaction information for similar bonds, the bond’s ratings and the bond’s subordination levels. For the minority portion of the Company's consolidated mortgage obligations which consist of unrated or non-investment grade bonds that are not owned by the Company directly, pricing may be either Level 2 or Level 3. If independent third party pricing similar to that noted above is available, the Company considers the valuation to be Level 2. If such third party pricing is not available, the valuation is generated from model-based techniques that use significant unobservable assumptions, and the Company considers the valuation to be Level 3. For mortgage obligations classified as Level 3, valuation is determined based on discounted expected future cash flows which take into consideration expected duration and yields based on market transaction information, ratings, subordination levels, vintage and current market spread. Mortgage obligations may shift between Level 2 and Level 3 of the fair value hierarchy if the significant fair value inputs used to price the mortgage obligations become or cease to be observable. Assets of the consolidated mortgage loans: The individual assets of a mortgage loan are inherently incapable of precise measurement given their illiquid nature and the limitations on available information related to these assets. Because the Company's methodology for valuing these assets does not value the individual assets of a mortgage loan, but rather uses the value of the mortgage obligations as an indicator of the fair value of mortgage loan assets as a whole, the Company has determined that its valuations of mortgage loan assets in their entirety should be classified in Level 3 of the fair value hierarchy. The following methods and assumptions are used to estimate the fair value of other classes of financial instruments, for which it is practicable to estimate that value: •Cash and cash equivalents: The carrying amount of cash on deposit and in money market funds approximates fair value. •Restricted cash: The carrying amount of restricted cash approximates fair value. •Loans receivable held-for-investment, net: The fair values for these loans were estimated by FS Real Estate Advisor based on a discounted cash flow methodology taking into consideration factors, including capitalization rates, discount rates, leasing, occupancy rates, availability and cost of financing, exit plan, sponsorship, actions of other lenders, and indications of market value from other market participants. •Mortgage-backed securities, at fair value : The fair values for these investments were based on indicative deal quotes. •Mortgage-backed securities held-to-maturity: The fair values for these investments were estimated by FS Real Estate Advisor based on a discounted cash flow methodology pursuant to which a discount rate or market yield is used to discount the estimated future cash flows expected to be received from the underlying investment, which include both future principal and interest payments. Significant increases or decreases in the discount rate or market yield would result in a decrease or increase in the fair value measurement. •Collateralized loan obligations, repurchase agreements payable, credit facilities payable, and mortgage note payable: The fair values for these instruments were estimated based on the rate at which similar credit facilities would have currently been priced. Deferred Financing Costs: Deferred financing costs include issuance and other costs related to the Company’s debt obligations. The deferred financing costs related to the Company’s collateralized loan obligations, repurchase agreements, and mortgage note payable, are recorded as a reduction in the net book value of the related liability on the Company's consolidated balance sheets. Deferred financing costs related to the Company’s revolving credit facilities and facilities that are undrawn as of the reporting date are recorded as an asset on the Company’s consolidated balance sheets. These costs are amortized as interest expense using the straight-line method over the term of the related obligation, which approximates the effective interest method. Revenue Recognition: Security transactions are accounted for on the trade date. The Company records interest income from its loans receivable portfolio on an accrual basis to the extent that the Company expects to collect such amounts. The Company does not accrue as a receivable interest or dividends on loans and securities if there is reason to doubt the collectability of such income. Discounts or premiums associated with the investment securities are amortized or accreted into interest income as a yield adjustment on the effective interest method, based on expected cash flows through the expected maturity date of the investment. On at least a quarterly basis, the Company reviews and, if appropriate, makes adjustments to its cash flow projections. The Company records dividend income on the ex-dividend date. Any loan origination fees to which the Company is entitled, loan exit fees, original issue discount and market discount are capitalized and such amounts are amortized as interest income over the respective term of the investment. Upon the prepayment of a loan or security, any unamortized loan origination fees to which the Company is entitled are recorded as fee income. The Company records prepayment premiums on loans and securities as fee income when it receives such amounts. Loans are considered past due when payments are not made in accordance with the contractual terms. The Company does not accrue as receivable interest on loans if it is not probable that such income will be collected. Unless the loan is both well secured and in the process of collection, loans are placed on non-accrual status when principal or interest is 120 days or more past due or when repayment of interest and principal is, in our judgment, in doubt. Interest payments received on non-accrual loans are generally recognized as interest income on a cash basis. If a full recovery of principal is doubtful, the cost recovery method is applied whereby any cash received is applied to the outstanding principal balance of the loan. Recognition of interest income on non-performing loans on an accrual basis is resumed when it is probable that the Company will be able to collect amounts due according to the contractual terms. As of September 30, 2023 and December 31, 2022, there were no loans with accrued interest past due 30 days or more, respectively. Offering Costs: Offering costs primarily include, among other things, marketing expenses and printing, legal and due diligence fees and other costs pertaining to the Company’s continuous public offering of shares of its common stock, including the preparation of the registration statement and salaries and direct expenses of FS Real Estate Advisor’s personnel, employees of its respective affiliates and others while engaged in such activities. The Company may reimburse FS Real Estate Advisor and Rialto for any offering expenses that they incurred on the Company's behalf, up to a cap of 0.75% of gross proceeds raised after such time. During the period from November 7, 2016 (Inception) to September 30, 2023, the Company incurred offering costs of $23,659, which were paid on its behalf by FS Investments (see Note 7). Income Taxes: The Company elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, or the Code, commencing with its taxable year ended December 31, 2017. In order to maintain its status as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of its annual REIT taxable income to its stockholders. As a REIT, the Company generally will not be subject to federal income tax on income that it distributes to stockholders. If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal income tax on its taxable income at regular corporate income tax rates and generally will not be permitted to qualify for treatment as a REIT for federal income tax purposes for the four taxable years following the year during which qualification is lost unless the Internal Revenue Service grants the Company relief under certain statutory provisions. Uncertainty in Income Taxes: The Company evaluates each of its tax positions to determine if they meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax benefits or liabilities in the unaudited consolidated financial statements. Recognition of a tax benefit or liability with respect to an uncertain tax position is required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Company recognizes interest and penalties, if any, related to unrecognized tax liabilities as income tax expense in the unaudited consolidated statements of operations. During the nine months ended September 30, 2023 and 2022, the Company did not incur any interest or penalties and none are accrued at September 30, 2023. Stockholder Servicing Fees: The Company follows the guidance in Accounting Standards Codification Topic 405, Liabilities, when accounting for stockholder servicing fees. The Company will pay stockholder servicing fees over time on its shares of Class T, Class S, Class D and Class M common stock as described in Note 7. The Company records stockholder servicing fees as a reduction to additional paid-in capital and records the related liability in an amount equal to its best estimate of the fees payable in relation to the shares of Class T, Class S, Class D and Class M common stock on the date such shares are issued. The liability will be reduced over time, as the fees are paid to the dealer manager, or adjusted if the fees are no longer payable. Earnings Per Share: The restricted stock units grant Class I shares issued to FS Real Estate Advisor and Rialto for payment of the administrative services fee are considered to be participating securities. The impact of these restricted stock units on basic and diluted earnings per common share ("EPS") has been calculated using the two-class method whereby earnings are allocated to the restricted stock units based on dividends declared and the restricted stock units' participation rights in undistributed earnings. As of September 30, 2023 and December 31, 2022, the effects of the two-class method on basic and diluted EPS were not material to the Company's consolidated financial statements. Derivative Instruments: The Company uses interest rate caps to manage risks from fluctuations in interest rates. The Company has not designated any of these contracts as fair value or cash flow hedges for accounting purposes. The Company records its derivatives on its consolidated balance sheets at fair value and such amounts are included in Other assets. Any changes in the fair value of these derivatives are recorded in earnings. The valuation of the Company's interest rate caps is determined based on assumptions that management believes market participants would use in pricing, using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of the derivative. This analysis reflects the contractual terms of the derivative, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with those derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by the Company and its counterparties. However, as of September 30, 2023, the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and determined that the credit valuation adjustments are not significant to the overall valuation of the Company’s derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy.
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Loans Receivable, net |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Receivable, net | Loans Receivable, net The following table details overall statistics for the Company's loans receivable portfolio as of September 30, 2023 and December 31, 2022:
_________________________ (1) The Company may be required to provide funding when requested by the borrowers in accordance with the terms of the underlying agreements. (2) The Company's floating rate loans are expressed as a spread over the relevant benchmark rates, which include the Secured Overnight Financing Rate, or SOFR. In addition to cash coupon, all-in yield includes accretion of discount (amortization of premium) and accrual of exit fees. (3) As of September 30, 2023, the one-month SOFR rate was 5.32%. As of December 31, 2022, the one-month LIBOR rate was 4.39% and the one-month SOFR rate was 4.36%. (4) Maximum maturity assumes all extension options are exercised by the borrowers; however, loans may be repaid prior to such date. For the nine months ended September 30, 2023 and 2022, the activity in the Company's loan portfolio, was as follows:
The following tables detail the property type and geographic location of the properties securing the loans in the Company's loans receivable, held-for-investment portfolio as of September 30, 2023 and December 31, 2022:
__________________________ (1) As defined by the United States Department of Commerce, Bureau of the Census. Loan Risk Rating As further described in Note 2, FS Real Estate Advisor and Rialto assess the risk factors of each loan and assign a risk rating based on a variety of factors, including, without limitation, loan-to-value ratio, or LTV, debt yield, property type, geographic and local market dynamics, physical condition, cash flow volatility, leasing and tenant profile, loan structure and exit plan, and project sponsorship. Based on a 5-point scale, the Company's loans are rated "1" through "5", from less risk to greater risk, which ratings are defined in Note 2. The following table allocates the net book value of the Company's loans receivable, held-for-investment portfolio based on the Company's internal risk ratings:
Current Expected Credit Loss Reserve The CECL reserve required under GAAP reflects the Company's current estimate of potential credit losses related to the loans and debt securities included in its consolidated balance sheets. The general CECL reserve is measured on a collective basis wherever similar risk characteristics exist within a pool of similar assets. The Company has identified senior loans and mezzanine loans as pools within its loans receivable portfolio. Refer to Note 2 for further discussion of the Company's CECL reserve. The following table provides details on the changes in CECL reserve for funded loans by investment pool:
The Company's initial CECL reserve against its loans receivable portfolio of $39,419 recorded on January 1, 2023 is reflected as a direct charge to retained earnings on its unaudited consolidated statements of changes in equity; however subsequent changes to the CECL reserve are recognized through net income on its unaudited consolidated statements of operations. During the three and nine months ended September 30, 2023, the Company recorded a decrease of $2,336 and an increase of $32,851, respectively, in expected credit loss reserve against its loans receivable portfolio, bringing the total CECL reserve to $72,270 as of September 30, 2023. The Company had one risk-rated 5 senior office loan located in Seattle, WA, originated in December 2021, with an outstanding principal balance of $36,500, amortized cost of $36,487, and an unfunded commitment of $9,600 as of September 30, 2023. The property experienced slower than anticipated leasing activity due to softness in the overall Seattle market office trends. During the three and nine months ended September 30, 2023, the Company recorded a $2,967 specific CECL reserve related to the loan calculated using the loan's collateral fair value, which was determined by applying a capitalization rate of 7.25% and a discount rate of 9.25%. In May 2023, this loan was placed on non-accrual status and future interest collections will be accounted for under the cost recovery method. The Company did not have any additional impaired loans, non-accrual loans, or loans in maturity default within the loans receivable, held-for-investment portfolio as of September 30, 2023. The Company's primary credit quality indicator is its risk ratings, which are further discussed in Note 2. The following table presents the net book value of its loans receivable, held-for-investment portfolio as of September 30, 2023 by year of origination and risk rating:
Current Expected Credit Loss Reserve for Unfunded Loan Commitments As of September 30, 2023, the Company had unfunded commitments of $456,666. The expected credit losses over the contractual period of its loans are subject to the obligation to extend credit through its unfunded loan commitments. See Note 2 for further discussion of the CECL reserve related to its unfunded loan commitments. The following table provides details on the changes in CECL reserve for unfunded loan commitments by investment pool:
The Company's initial CECL reserve against its unfunded loan commitments of $1,163 recorded on January 1, 2023 is reflected as a direct charge to retained earnings on its unaudited consolidated statements of changes in equity; however subsequent changes to the CECL reserve are recognized through net income on the unaudited consolidated statements of operations. During the three and nine months ended September 30, 2023, the Company recorded a decrease of $130 and an increase of $473, respectively, in expected credit loss reserve against its unfunded loan commitments, bringing the Company's total CECL reserve on its unfunded loan commitments to $1,636 as of September 30, 2023.
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Mortgage Backed Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Backed Securities | Mortgage Backed Securities Mortgage-backed securities, at fair value Commercial mortgage-backed securities, or CMBS, classified as available-for-sale are reported at fair value on the consolidated balance sheets with changes in fair value recorded in other comprehensive income. CMBS accounted for under the fair value option are reported at fair value on the consolidated balance sheets with changes in fair value recorded in the consolidated statements of operations as a component of Net change in unrealized gain (loss) on mortgage-backed securities, fair value option. The table below summarizes various attributes of the Company's investments in CMBS reported at fair value as of September 30, 2023 and December 31, 2022, respectively.
__________________________ (1) Calculated using the one-month SOFR rate of 5.32% as of September 30, 2023. (2) Calculated using the one-month LIBOR rate of 4.39% and the one-month SOFR rate of 4.36% as of December 31, 2022. As of September 30, 2023, there was one CMBS, available for sale placed on non-accrual status during the quarter with an amortized cost of $14,126. All future interest collections will be accounted for under the cost recovery method. The Company uses a discounted cash flow method to estimate and recognize an allowance for its available-for sale securities. The following table provides details on the changes in allowance for credit losses for available-for sale securities:
The following table presents the gross unrealized losses and estimated fair value of any available-for-sale securities for which an allowance for credit losses has not been recorded that were in an unrealized loss position as of September 30, 2023 and December 31, 2022, respectively.
As of September 30, 2023 and December 31, 2022, there were ten securities and fifteen securities, respectively, with unrealized losses reflected in the table above. After evaluating the securities and recording adjustments for credit losses, the Company concluded that the remaining unrealized losses reflected above were noncredit-related and would be recovered from the securities’ estimated future cash flows. The Company considered a number of factors in reaching this conclusion, including that it did not intend to sell the securities, it was not considered more likely than not that the Company would be forced to sell the securities prior to recovering its amortized cost, and there were no material credit events that would have caused the Company to otherwise conclude that it would not recover the cost of the securities. Mortgage-backed securities, held-to-maturity The table below summarizes various attributes of the Company's investments in held-to-maturity CMBS as of September 30, 2023 and December 31, 2022, respectively.
The following table provides details on the changes in CECL reserve for held-to-maturity CMBS:
The table below summarizes the maturities of the Company's investments in held-to-maturity CMBS as of September 30, 2023 and December 31, 2022, respectively:
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Real Estate |
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Real Estate [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate | Real Estate Investment in real estate, net, consisted of the following as of September 30, 2023 and December 31, 2022:
The following table details the Company's future amortization of intangible assets for each of the next five years and thereafter:
The components of rental operations, net on the Company's unaudited consolidated statements of operations consisted of the following:
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Financing Arrangements |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Arrangements | Financing Arrangements The following tables present summary information with respect to the Company's outstanding financing arrangements as of September 30, 2023 and December 31, 2022.
________________ (1) The amount outstanding under the facilities approximates their fair value. (2) The rates are expressed over the relevant floating benchmark rates, which include Term SOFR, and SOFR Average (compounded average of SOFR over a rolling 30-day period). (3) Benchmark rate is subject to a 0.00% floor. SOFR benchmark rate is selected with respect to a transaction as set forth in the related transaction confirmation for the underlying transaction. (4) Term SOFR is subject to a 0.00% floor. GS-1 and Goldman Sachs may mutually agree on rates outside this range or a different floor on an asset by asset basis. (5) Term SOFR or SOFR Average (compounded average of SOFR over a rolling 30-day period), subject to a 0.00% floor. (6) Term SOFR is subject to a 0.00% floor. (7) The rate applicable under the MM-1 Facility is subject to a credit spread adjustment of 0.11%, which was included when the benchmark transitioned from USD LIBOR to Term SOFR. (8) Borrowings under the Barclays Facility bear interest, at the Company's election, at either a base rate plus a spread of 1.25% per annum or one-, three- or six-month Term SOFR plus a spread of 2.25% per annum and a credit spread adjustment of 0.10% per annum.
_______________________ (1) The amount outstanding under the facilities approximates their fair value. (2) The rates are expressed over the relevant floating benchmark rates, which include USD LIBOR, Term SOFR, and SOFR Average (compounded average of SOFR over a rolling 30-day period). (3) USD LIBOR is subject to a 0.00% floor. (4) Benchmark rate is subject to a 0.00% floor. LIBOR or SOFR benchmark rate is selected with respect to a transaction as set forth in the related transaction confirmation for the underlying transaction. (5) Term SOFR is subject to a 0.00% floor. GS-1 and Goldman Sachs may mutually agree on rates outside this range or a different floor on an asset by asset basis. (6) USD LIBOR, Term SOFR or SOFR Average (compounded average of SOFR over a rolling 30-day period), subject to a 0.00% floor. (7) Term SOFR is subject to a 0.00% floor. (8) The rate applicable under the MM-1 Facility is subject to a credit spread adjustment of 0.11%, which was included when the benchmark transitioned from USD LIBOR to Term SOFR. (9) Borrowings under the Barclays Facility bear interest, at the Company's election, at either a base rate plus a spread of 1.25% per annum or one-, three- or six-month Term SOFR plus a spread of 2.25% per annum and a credit spread adjustment of 0.10% per annum. The Company's average borrowings and weighted average interest rate, including the effect of non-usage fees, for the nine months ended September 30, 2023 were $5,674,603 and 7.12%, respectively. The Company's average borrowings and weighted average interest rate, including the effect of non-usage fees, for the year ended December 31, 2022 were $4,560,400 and 3.83%, respectively. Under its financing arrangements, the Company has made certain representations and warranties and is required to comply with various covenants, reporting requirements and other customary requirements for similar financing arrangements. The Company was in compliance with all covenants required by its financing arrangements as of September 30, 2023 and December 31, 2022. Maturities The Company generally requires the amount outstanding on debt obligations to be paid down before the financing arrangement's respective maturity date. The following table sets forth the Company's repayment schedule for secured financings outstanding as of September 30, 2023 based on the maturity date of each financing arrangement:
_______________________ (1) The allocation of repayments under the Company's collateralized loan obligations is based on the maturity date of each agreement, or the maximum maturity date assuming all extension options are exercised by the borrower if the reinvestment period has expired. Collateralized Loan Obligations The Company financed certain pools of loans through collateralized loan obligations, which include 2019-FL1, 2021-FL2, 2021-FL3, 2022-FL4, 2022-FL5, 2022-FL6 and 2022-FL7, or collectively, the CLOs. The following table outlines the number of loans, including partial loans, and the principal balance of the collateralized pool of interests for each CLO.
Deferred financing costs and discounts related to the collateralization of the CLO notes are amortized to interest expense over the remaining life of the loans. The following table outlines the net book value of the Company's CLOs on its consolidated balance sheets.
Repurchase Agreements The Company has entered into and maintains in effect eight repurchase facilities. The Company, through direct or indirect wholly owned subsidiaries, entered into repurchase agreements with Wells Fargo (the “WF-1 Facility”), Goldman Sachs (the “GS-1 Facility”), Royal Bank of Canada (the “RBC Facility”), Barclays Bank PLC (the “BB-1 Facility”), Morgan Stanley Bank, N.A. (the “MS-1 Facility”), Natixis, New York Branch (the “NTX-1 Facility”), Bank of Montreal (the "BMO-1 Facility"), and Lucid Prime Fund (the "Lucid Facility"). The Company uses repurchase facilities for multiple purposes, including, but not limited to, (i) financing the acquisition and origination of (a) real estate loans or senior controlling participation interests in such loans, (b) pari passu participation interests in mortgage loans and (c) mezzanine loans and, (ii) repurchase transactions of securities and financial instruments. Each repurchase facility is subject to certain representations, warranties, covenants, events of default and indemnities unique to each facility but customary for agreements of this type. Further, the Company has entered into guarantees with respect to each of the repurchase facilities in which the Company guarantees obligations of the facility. Each transaction under each repurchase facility has its own specific terms, such as identification of the assets subject to the transaction, sale price, repurchase price and rate. The Company incurred deferred financing costs in connection with each repurchase facility, which costs are being amortized to interest expense over the life of that repurchase facility. The following table outlines the net book value of the Company's repurchase facilities on its consolidated balance sheets.
WF-1 Facility On August 24, 2023, FS CREIT Finance WF-1 LLC, an indirect wholly owned special-purpose financing subsidiary of the Company, entered into a Maturity Date and Funding Period Extension Confirmation Letter and Amendment No. 11 to Master Repurchase and Securities Contract, or Eleventh Amendment to Master Repurchase Agreement, amending Master Repurchase and Securities Contract dated as of August 30, 2017 with Wells Fargo Bank, National Association, as buyer. The Eleventh Amendment to Master Repurchase Agreement provides for, among other things, an extension of each of the Maturity Date and the Funding Expiration Date, in each case, from August 30, 2023 to August 30, 2024. BMO-1 Facility On August 3, 2023, the Company closed on the 1st Amendment to the Master Repurchase Agreement between Bank of Montreal and FS CREIT Finance BMO-1 LLC. The amendment provides for, among other things, (i) the addition of “component interest,” “component interest documents,” and “component interest note”, (ii) a revision to Schedule 1(b) – Re: Purchased Assets Consisting of Component Interests, and (iii) a revision to Exhibit A – Form of Transaction Request and Confirmation. There are no changes to the economic terms of the agreement. Revolving Credit Facilities The Company has entered into, and maintains in effect, two revolving credit facilities, the Barclays Facility and the MM-1 Facility. The Barclays Facility is utilized for purposes of financing the operating expenses and general corporate purposes of the Company and its subsidiaries. The MM-1 Facility is utilized for the purposes of financing the acquisition and origination of commercial mortgage loan assets meeting specified eligibility criteria and concentration limits, pay transaction costs and fund distributions to FS CREIT Finance Holdings, LLC (and ultimately to the Company). The Company incurred deferred financing costs in connection with each revolving credit facility, which costs are being amortized to interest expense over the life of that facility. The following table details the net book value of the Company's revolving credit facilities on its consolidated balance sheets.
Mortgage Loan Natixis Loan On June 23, 2022, FS CREIT 555 Aviation LLC, an indirect wholly-owned subsidiary of the Company, entered into a mortgage loan related to its purchase of 555 Aviation (see Note 5). The Company incurred deferred financing costs, which are being amortized to interest expense over the life of the facility. The following table details the net book value of the Company's mortgage loan on its consolidated balance sheets.
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Related Party Transactions |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions | Related Party Transactions Compensation of FS Real Estate Advisor, Rialto and the Dealer Manager Base Management Fee Pursuant to the fourth amended and restated advisory agreement dated as of December 1, 2022 or the New Advisory Agreement, FS Real Estate Advisor is entitled to a base management fee equal to 1.25% of the NAV for the Company's Class T, Class S, Class D, Class M and Class I shares, payable quarterly in arrears. The payment of all or any portion of the base management fee accrued with respect to any quarter may be deferred by FS Real Estate Advisor, without interest, and may be taken in any such other quarter as FS Real Estate Advisor may determine. In calculating the Company's base management fee, the Company will use its NAV before giving effect to accruals for such fee, the performance fee, the administrative services fee, stockholder servicing fees or distributions payable on its shares. The base management fee is a class-specific expense. No base management fee is paid on the Company's Class F or Class Y shares. Performance Fee FS Real Estate Advisor is also entitled to the performance fee calculated and payable quarterly in arrears in an amount equal to 10.0% of the Company's Core Earnings (as defined below) for the immediately preceding quarter, subject to a hurdle rate, expressed as a rate of return on average adjusted capital, equal to 1.625% per quarter, or an annualized hurdle rate of 6.5%. As a result, FS Real Estate Advisor does not earn a performance fee for any quarter until the Company's Core Earnings for such quarter exceed the hurdle rate of 1.625%. For purposes of the performance fee, “adjusted capital” means cumulative net proceeds generated from sales of the Company's common stock other than Class F common stock (including proceeds from the Company's distribution reinvestment plan) reduced for distributions from non-liquidating dispositions of the Company's investments paid to stockholders and amounts paid for share repurchases pursuant to the Company's share repurchase plan. Once the Company's Core Earnings in any quarter exceed the hurdle rate, FS Real Estate Advisor will be entitled to a “catch-up” fee equal to the amount of Core Earnings in excess of the hurdle rate, until the Company's Core Earnings for such quarter equal 1.806%, or 7.222% annually, of adjusted capital. Thereafter, FS Real Estate Advisor is entitled to receive 10.0% of the Company's Core Earnings. For purposes of calculating the performance fee, “Core Earnings” means: the net income (loss) attributable to stockholders of Class Y, Class T, Class S, Class D, Class M and Class I shares, computed in accordance with GAAP (provided that net income (loss) attributable to Class Y stockholders shall be reduced by an amount equal to the base management fee that would have been paid if Class Y shares were subject to such fee), including realized gains (losses) not otherwise included in GAAP net income (loss) and excluding (i) non-cash equity compensation expense, (ii) the performance fee, (iii) depreciation and amortization, (iv) any unrealized gains or losses or other similar non-cash items that are included in net income for the applicable reporting period, regardless of whether such items are included in other comprehensive income or loss, or in net income, and (v) one-time events pursuant to changes in GAAP and certain material non-cash income or expense items, in each case after discussions between FS Real Estate Advisor and the Company's independent directors and approved by a majority of the Company's independent directors. The performance fee is a class-specific expense. No performance fee is paid on the Company's Class F shares. Method of Payment Pursuant to the advisory agreement, the base management fee and performance fee may be paid, at FS Real Estate Advisor’s election, in (i) cash, (ii) Class I shares, (iii) performance-contingent rights Class I share awards, or Class I PCRs, or (iv) any combination of cash, Class I shares or Class I PCRs. Under the Class I PCR agreement entered into between the Company, FS Real Estate Advisor and Rialto, or the Adviser Entities, the PCR Agreement, management and performance fees may be payable to the Adviser Entities in the form of Class I PCRs to the extent that distributions paid to stockholders in the applicable fiscal quarter exceed the Company’s Adjusted Core Earnings. “Adjusted Core Earnings” means: the net income (loss) attributable to stockholders, computed in accordance with GAAP, including (i) realized gains (losses) not otherwise included in GAAP net income (loss), (ii) stockholder servicing fees, and (iii) reimbursements for organization and offering expenses, and excluding (A) non-cash equity compensation expense, (B) non-cash equity based administration fees, (C) depreciation and amortization, (D) any unrealized gains or losses or other similar non-cash items that are included in net income for the applicable reporting period, regardless of whether such items are included in other comprehensive income or loss, or in net income, and (E) one-time events pursuant to changes in GAAP and certain material non-cash income or expense items. Thereafter, Class I PCRs may become issuable in the form of Class I shares upon the achievement of the following conditions in any fiscal quarter following the initial issuance of the Class I PCRs, together, the Performance Conditions: (a) Adjusted Core Earnings for the quarter exceed distributions paid to stockholders during such quarter (such difference, the “Excess Distributable Income”) and (b) the annualized distribution yield on the Class I Shares (measured over such quarter) is at least at the yield target determined by management given then-current market conditions, the Yield Target. The initial Yield Target will be a 6.0% annualized yield on the Class I shares. On the last day of any fiscal quarter in which the Company achieves the Performance Conditions (the “Performance Achievement Date”), the Company will issue to the Adviser Entities the number of Class I shares equal in value to the Excess Distributable Income for such quarter in respect of any outstanding Class I PCRs. The Adviser Entities, and their respective affiliates and employees, may not request repurchase by the Company of any Class I shares issued under the PCR Agreement for a period of six (6) months from the date of issuance. Thereafter, upon ten days’ written notice to the Company by the Adviser Entities, the Company must repurchase any Class I shares requested to be repurchased by the Adviser Entities at the then current transaction price per Class I share; provided that no repurchase shall be permitted that would jeopardize the Company’s qualification as a REIT or violate Maryland law. If, prior to the Performance Achievement Date, (i) the New Advisory Agreement is terminated in accordance with Section 12(b) of the New Advisory Agreement (other than Section 12(b)(iii) thereof) or (ii) the sub-advisory agreement is terminated in accordance with Section 9(b) thereof (other than Section 9(b)(v) thereof), any rights related to the Class I PCRs evidenced thereby by the terminated party as of the date of such termination shall immediately vest and the Company shall issue the number of Class I shares issuable upon such vesting. If, prior to the Performance Achievement Date, either of the Adviser Entities resigns as the adviser or sub-adviser, respectively, of the Company, then any rights related to the Class I PCRs evidenced thereby as of the date of such resignation shall remain outstanding and Class I shares issuable in respect thereof shall be issued upon achievement of the Performance Conditions. Administrative Services Fee On December 1, 2022, the Company and FS Real Estate Advisor entered into the Fourth Amended and Restated Advisory Agreement (the “Advisory Agreement”), which amends and restates the Third Amended and Restated Advisory Agreement, dated December 15, 2021, to replace the reimbursement of administrative service expenses with an administrative services fee equal to 1.0% of the Company’s net asset value per annum attributable to all shares of common stock, before giving effect to any accruals for the base management fee, the performance fee, the administrative services fee, the stockholder servicing fee or any distributions. Under the Advisory Agreement, the administrative services fee will be payable quarterly and in arrears in the cash equivalent number of restricted stock units (“Class I RSUs”) representing the right to receive Class I shares of the Company’s common stock (“Class I shares”) based on the then-current Class I transaction price as of the last day of such quarter. Class I RSUs in payment of the administrative services fee will provide the Adviser the right to receive a number of Class I shares equivalent to the number of Class I RSUs, subject to the terms and conditions set forth in the Class I RSU Agreement. FS Real Estate Advisor may elect, at a later date, to have the Company repurchase some or all of the Class I shares issued to the Adviser in accordance with the Advisory Agreement, including Class I shares issued pursuant to any Class I RSUs, at a per share price equal to the then-current Class I share transaction price. Such Class I shares will not be subject to the repurchase limits of the Company’s share repurchase plan or any reduction or penalty for an early repurchase, provided that the approval of the Company’s independent directors is required for any repurchase request of FS Real Estate Advisor or Rialto, for Class I shares received as payment for advisory fees that, when combined with any stockholder repurchase requests submitted through the Company’s share purchase plan, would cause the Company to exceed the monthly and quarterly repurchase limitations of its share repurchase plan. The FS Real Estate Advisor will have no registration rights with respect to such Class I shares. Any such Class I shares and Class I RSUs issued to Rialto will have the same rights and conditions as those issued to FS Real Estate Advisor. At least annually, the Company’s board of directors reviews the amount of the administrative services expenses reimbursable to FS Real Estate Advisor and Rialto to determine whether such amounts are reasonable in relation to the services provided. The Company will not reimburse FS Real Estate Advisor or Rialto for any services for which it receives a separate fee or for any administrative expenses allocated to employees to the extent they serve as executive officers of the Company. Class I Restricted Stock Unit Agreement On December 1, 2022, the Company, FS Real Estate Advisor and Rialto entered into the Class I Restricted Stock Unit Agreement (the “Class I RSU Agreement”). Pursuant to the Class I RSU Agreement, and in accordance with the Advisory Agreement, the administrative services fee will be payable quarterly in arrears on the last day of each quarter in the cash equivalent number of Class I RSUs based on the then-current Class I share transaction price as of the last day of such quarter. On the last day of each quarter, the Company will issue to FS Real Estate Advisor and Rialto the cash equivalent number of Class I RSUs to which each is entitled. Class I RSUs will vest ratably on the first calendar day of the month following the one, two and three-year anniversary of the applicable grant date, provided that (i) 100% of the Adviser’s Class I RSUs will immediately vest upon the nonrenewal or termination of the Advisory Agreement pursuant to Section 12(b)(ii), Section 12(b)(iii) or Section 12(b)(iv) thereof; (ii) 100% of the Sub-Adviser’s Class I RSUs will immediately vest upon the nonrenewal or termination of the sub-advisory agreement between FS Real Estate Advisor and Rialto (the “Sub-Advisory Agreement”) pursuant to Section 9(b)(i), Section 9(b)(iii), Section 9(b)(iv), Section 9(b)(v) or Section 9(b)(vi) thereof; (iii) 100% of the Adviser’s unvested Class I RSUs will be automatically forfeited upon termination of the Advisory Agreement pursuant to Section 12(b)(i) thereof; and (iv) 100% of the Sub-Adviser’s unvested Class I RSUs will be automatically forfeited upon termination of the Sub-Advisory Agreement pursuant to Section 9(b)(ii) thereof. If FS Real Estate Advisor and Rialto resigns as the Company’s adviser or sub-adviser, respectively, then any rights related to the Class I RSUs evidenced thereby as of the date of such resignation will remain outstanding and Class I shares issuable in respect thereof will be issued upon the applicable vesting date. If the Company declares a cash distribution on the Class I shares underlying unvested Class I RSUs, then the Company will credit the account of FS Real Estate Advisor and Rialto with the applicable distribution equivalents, which will be subject to the same vesting and forfeiture restrictions as the Class I RSUs. FS Real Estate Advisor and Rialto, and their respective affiliates and employees, may not request repurchase by the Company of any Class I shares issued under the Class I RSU Agreement for a period of six months from the date of issuance. Thereafter, upon ten days’ written notice to the Company the Company must repurchase any Class I shares requested to be repurchased by FS Real Estate Advisor and Rialto at the most recently published transaction price per Class I share; provided that no repurchase will be permitted that would jeopardize the Company’s qualification as a REIT or violate Maryland law. Origination Fees FS Real Estate Advisor has engaged Rialto as sub-adviser to originate loans and other investments on behalf of the Company, and FS Real Estate Advisor oversees the sub-adviser’s origination activities. In connection with these activities, origination fees of up to 1.0% of the loan amount for first lien, subordinated or mezzanine debt or preferred equity financing may be retained by the sub-adviser or FS Real Estate Advisor. Such origination fees will be retained only to the extent they are paid by the borrower, either directly to Rialto or FS Real Estate Advisor or indirectly through the Company. During the nine months ended September 30, 2023 and 2022, $7,418 and $33,237, respectively, in origination fees were paid directly by the borrowers to FS Real Estate Advisor or Rialto and not to the Company. During the nine months ended September 30, 2023 and 2022, $0 and $2,000, respectively, in capital market fees were paid to affiliates of the Company. Offering Costs FS Investments funded the Company’s offering costs in the amount of $23,902 for the period from November 7, 2016 (Inception) to September 30, 2023. These expenses include legal, accounting, printing, mailing and filing fees and expenses, due diligence expenses of participating broker-dealers supported by detailed and itemized invoices, costs in connection with preparing sales materials, design and website expenses, fees and expenses of the Company’s transfer agent, fees to attend retail seminars sponsored by participating broker-dealers and reimbursements for customary travel, lodging, and meals, but excluding selling commissions, dealer manager fees and stockholder servicing fees. FS Real Estate Advisor may be reimbursed for any organization and offering expenses that it or Rialto has incurred on the Company's behalf, up to a cap of 0.75% of gross proceeds raised. During the nine months ended September 30, 2023, the Company paid $5,159 to FS Real Estate Advisor for offering costs previously funded. As of September 30, 2023, $4,180 of offering expenses previously funded remained subject to reimbursement to FS Real Estate Advisor and Rialto. The following table describes the fees and expenses accrued under the advisory agreement and sub-advisory agreement during the nine months ended September 30, 2023 and 2022:
_______________________ (1) During the nine months ended September 30, 2023, FS Real Estate Advisor received $23,949, in cash as payment for management fees. During the nine months ended September 2022, FS Real Estate Advisor received $2,007 in cash and $11,409 of performance contingent rights were issued as payment for management fees. As of September 30, 2023 and 2022, there were $9,088 and $0 base management fees payable to FS Real Estate Advisor. (2) During the nine months ended September 30, 2023 and 2022, $16,160 and $557, respectively, in performance fees were paid to FS Real Estate Advisor. As of September 30, 2023, there were $6,354 performance fees payable to FS Real Estate Advisor. (3) During the nine months ended September 30, 2022, $7,978, of the accrued administrative services expenses related to the allocation of costs of administrative personnel for services rendered to the Company by FS Real Estate Advisor and Rialto and the remainder related to other reimbursable expenses. These amounts are recorded as general and administrative expenses on the accompanying unaudited consolidated statements of operations. (4) On December 1, 2022, the Company's method for reimbursing administrative services expense was replaced with an administrative services fee equal to 1.0% of the Company’s net asset value per annum attributable to all shares of common stock, before giving effect to any accruals for the base management fee, the performance fee, the administrative services fee, the stockholder servicing fee or any distributions. (5) During the nine months ended September 30, 2023 and 2022, $214 and $193, respectively, in valuation fees were paid by the Company to Rialto. The dealer manager for the Company’s continuous public offering is FS Investment Solutions, LLC, or FS Investment Solutions, which is an affiliate of FS Real Estate Advisor. Under the amended and restated dealer manager agreement dated as of August 17, 2018, or the dealer manager agreement, FS Investment Solutions is entitled to receive upfront selling commissions of up to 3.0%, and upfront dealer manager fees of 0.5% of the transaction price of each Class T share sold in the primary offering, however such amounts may vary at certain participating broker-dealers provided that the sum will not exceed 3.5% of the transaction price (subject to reductions for certain categories of purchasers). FS Investment Solutions is entitled to receive upfront selling commissions of up to 3.5% of the transaction price per Class S share sold in the primary offering (subject to reductions for certain categories of purchasers). The dealer manager anticipates that all of the selling commissions and dealer manager fees will be re-allowed to participating broker-dealers, unless a particular broker-dealer declines to accept some portion of the dealer manager fee they are otherwise eligible to receive. Pursuant to the dealer manager agreement, the Company also reimburses FS Investment Solutions or participating broker-dealers for bona fide due diligence expenses, provided that total organization and offering expenses shall not exceed 15% of the gross proceeds in the Company's public offering. No selling commissions or dealer manager fees are payable on the sale of Class D, Class M, Class I, Class F or Class Y shares or on shares of any class sold pursuant to the Company's distribution reinvestment plan. Subject to the limitations described below, the Company pays FS Investment Solutions stockholder servicing fees for ongoing services rendered to stockholders by participating broker-dealers or by broker-dealers servicing stockholders’ accounts, referred to as servicing broker-dealers: •with respect to the Company's outstanding Class T shares equal to 0.85% per annum of the aggregate NAV of its outstanding Class T shares, consisting of an advisor stockholder servicing fee of 0.65% per annum and a dealer stockholder servicing fee of 0.20% per annum; however, with respect to Class T shares sold through certain participating broker-dealers, the advisor stockholder servicing fee and the dealer stockholder servicing fee may be other amounts, provided that the sum of such fees will always equal 0.85% per annum of the NAV of such shares; •with respect to the Company's outstanding Class S shares equal to 0.85% per annum of the aggregate NAV of its outstanding Class S shares; •with respect to the Company's outstanding Class D shares equal to 0.3% per annum of the aggregate NAV of its outstanding Class D shares; and •with respect to the Company's outstanding Class M shares equal to 0.3% per annum of the aggregate NAV of its outstanding Class M shares. The Company does not pay a stockholder servicing fee with respect to its Class I, Class F or Class Y shares. The dealer manager reallows some or all of the stockholder servicing fees to participating broker-dealers, servicing broker-dealers and financial institutions (including bank trust departments) for ongoing stockholder services performed by such broker-dealers, and waives (pays back to the Company) stockholder servicing fees to the extent a broker-dealer or financial institution is not eligible or otherwise declines to receive all or a portion of such fees. The Company will cease paying stockholder servicing fees with respect to any Class D, Class M, Class S and Class T shares held in a stockholder’s account at the end of the month in which the total underwriting compensation from the upfront selling commissions, dealer manager fees and stockholder servicing fees, as applicable, paid with respect to such account would exceed 1.25%, 7.25%, 8.75% and 8.75%, respectively (or a lower limit for shares sold by certain participating broker-dealers or financial institutions) of the gross proceeds from the sale of shares in such account. These amounts are referred to as the sales charge cap. At the end of such month that the sales charge cap is reached, each Class D, Class M, Class S or Class T share in such account will convert into a number of Class I shares (including any fractional shares) with an equivalent aggregate NAV as such share. In addition, the Company will cease paying stockholder servicing fees on each Class D share, Class M share, Class S share and Class T share held in a stockholder’s account and each such share will convert to Class I shares on the earlier to occur of the following: (i) a listing of Class I shares on a national securities exchange; (ii) the sale or other disposition of all or substantially all of the Company’s assets or the Company’s merger or consolidation with or into another entity in a transaction in which holders of Class D, Class M, Class S or Class T shares receive cash and/or shares of stock that are listed on a national securities exchange; or (iii) the date following the completion of the Company’s public offering on which, in the aggregate, underwriting compensation from all sources in connection with the Company’s public offering, including selling commissions, dealer manager fees, stockholder servicing fees and other underwriting compensation, is equal to 10% of the gross proceeds from its primary offering. The Company accrues future stockholder servicing fees in an amount equal to its best estimate of fees payable to FS Investment Solutions at the time such shares are sold. As of September 30, 2023 and December 31, 2022, the Company accrued $115,832 and $107,692, respectively, of stockholder servicing fees payable to FS Investment Solutions. FS Investment Solutions has entered into agreements with selected dealers distributing the Company's shares in the public offering, which provide, among other things, for the re-allowance of the full amount of the selling commissions and dealer manager fee and all or a portion of the stockholder servicing fees received by FS Investment Solutions to such selected dealers. FS Investment Solutions also serves or served as the placement agent for the Company’s private offerings of Class I, Class F and Class Y shares pursuant to placement agreements. FS Investment Solutions does not receive any compensation pursuant to these agreements. Expense Limitation The Company has entered into an amended and restated expense limitation agreement with FS Real Estate Advisor and Rialto, or the expense limitation agreement, pursuant to which FS Real Estate Advisor and Rialto have agreed to waive reimbursement of or pay, on a quarterly basis, the Company’s annualized ordinary operating expenses for such quarter to the extent such expenses exceed 1.5% per annum of its average net assets attributable to each of its classes of common stock. The Company will repay FS Real Estate Advisor or Rialto on a quarterly basis any ordinary operating expenses previously waived or paid, but only if the reimbursement would not cause the then-current expense limitation, if any, to be exceeded. In addition, the reimbursement of expenses will be made only if payable not more than three years from the end of the fiscal quarter in which the expenses were paid or waived. To the extent that the conditions to recoupment are satisfied in a future quarter (prior to the expiration of the three-year period for reimbursement set forth in the expense limitation agreement), such expenses may be subject to conditional recoupment in accordance with the terms of the expense limitation agreement. During the period from September 13, 2017 (Commencement of Operations) to September 30, 2023, the Company accrued $6,592 for reimbursement of expenses that FS Real Estate Advisor and Rialto paid or waived, including $148 in reimbursements for the nine months ended September 30, 2023. During the period from September 13, 2017 (Commencement of Operations) to September 30, 2023, the Company received $6,592 in cash reimbursements from FS Real Estate Advisor. As of September 30, 2023, the Company had $61 of reimbursements due from FS Real Estate Advisor and Rialto. During the nine months ended September 30, 2023 no expense recoupments were paid to FS Real Estate Advisor and Rialto. As of September 30, 2023, no expense recoupments were payable to FS Real Estate Advisor and Rialto. The following table reflects the amounts paid or waived by FS Real Estate Advisor and Rialto under the expense limitation agreement and the expiration date for future possible reimbursements by the Company:
Capital Contributions and Commitments In December 2016, pursuant to a private placement, Michael C. Forman and David J. Adelman, principals of FS Investments, contributed an aggregate of $200 to purchase 8,000 Class F shares at the price of $25.00 per share. These individuals will not tender these shares of common stock for repurchase as long as FS Real Estate Advisor remains the Company's adviser. FS Investments is controlled by Mr. Forman, the Company's president and chief executive officer, and Mr. Adelman. As of September 30, 2023, the ownership in the Company's Class F Shares by FS Real Estate Advisor and Rialto (and each of their respective affiliates and designees) was $18,583 and $402, respectively. RIAL 2022-FL8 Transaction In the second quarter of 2022 and 2023, the Company purchased $36,000 and $15,000, respectively, of mortgage-backed securities in a transaction in which an affiliate of Rialto is the issuer of the notes. These securities are accounted for as available-for-sale.
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Stockholder's Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | Below is a summary of transactions with respect to shares of the Company's common stock during the nine months ended September 30, 2023 and 2022:
_______________________ (1) Stockholder servicing fees only apply to Class T, Class S, Class D and Class M shares. Under GAAP, the Company accrues future stockholder servicing fees in an amount equal to its best estimate of fees payable to FS Investment Solutions at the time such shares are sold. For purposes of NAV, the Company recognizes the stockholder servicing fee as a reduction of NAV on a monthly basis. As a result, the estimated liability for the future stockholder servicing fees, which are accrued at the time each share is sold, will have no effect on the NAV of any class. Share Repurchase Plan The Company has adopted an amended and restated share repurchase plan, or share repurchase plan, whereby on a monthly basis, stockholders may request that the Company repurchase all or any portion of their shares. The repurchase of shares is limited to no more than 2% of the Company's aggregate NAV per month of all classes of shares then participating in the share repurchase plan and no more than 5% of the Company's aggregate NAV per calendar quarter of all classes of shares then participating in the share repurchase plan, which means that in any 12-month period, the Company limits repurchases to approximately 20% of the total NAV of all classes of shares then participating in the share repurchase plan. The Company's board of directors may modify, suspend or terminate the share repurchase plan if it deems such action to be in the Company's best interest and the best interest of its stockholders. During the nine months ended September 30, 2023 and 2022, the Company repurchased 9,723,258 and 4,014,502, respectively, shares of common stock under its share repurchase plan representing a total of $240,434 and $99,944, respectively. The Company had no unfulfilled repurchase requests during the nine months ended September 30, 2023 or 2022, respectively. Distribution Reinvestment Plan Pursuant to the Company's distribution reinvestment plan, holders of shares of any class of the Company's common stock may elect to have their cash distributions reinvested in additional shares of the Company's common stock. The purchase price for shares pursuant to the distribution reinvestment plan will be equal to the transaction price for such shares at the time the distribution is payable. Distributions The Company generally intends to distribute substantially all of its taxable income, which does not necessarily equal net income as calculated in accordance with GAAP, to its stockholders each year to comply with the REIT provisions of the Code. Dividends are paid first to the holders of the Company's Series A preferred stock at the rate of 12.0% per annum plus all accumulated and unpaid dividends thereon, and then to the holders of the Company's common stock. All distributions will be made at the discretion of the Company's board of directors and will depend upon its taxable income, financial condition, maintenance of REIT status, applicable law, and other factors that the Company's board of directors deems relevant. The following table reflects the cash distributions per share that the Company paid on its common stock during the nine months ended September 30, 2023:
The following table reflects the amount of cash distributions that the Company paid on its common stock during the nine months ended September 30, 2023, and 2022:
______________________ (1) Cash flows from operating activities are supported by expense support payments from FS Real Estate Advisor and Rialto pursuant to the Company's expense limitation agreement. See Note 7 for additional information regarding the Company's expense limitation agreement. The Company currently declares and pays regular cash distributions on a monthly basis. The Company’s board of directors previously authorized regular monthly cash distributions for October 2023 for each class of its outstanding common stock in the net distribution amounts per share set forth below:
The distributions for each class of outstanding common stock have been or will be paid monthly to stockholders of record as of the monthly record dates previously determined by the Company's board of directors. These distributions have been or will be paid in cash or reinvested in shares of the Company’s common stock for stockholders participating in the Company’s distribution reinvestment plan.
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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 The following table presents the Company's financial assets and liabilities carried at fair value in the consolidated balance sheets by its level in the fair value hierarchy:
The following table presents the changes in fair value of financial assets which are measured at fair value on a recurring basis using Level 3 inputs to determine fair value for the nine months ended September 30, 2023:
As of September 30, 2023, the Company utilized a discounted cash flow model, comparable precedent transactions and other market information to quantify Level 3 fair value measurements on a recurring basis. As of September 30, 2023, the key unobservable inputs used in the valuation of mortgage obligations issued by securitization trusts included a blended yield ranging from 12.69% to 16.82% (weighted average blended yield of 14.16%) and a life of 1 to 3.5 years (weighted average life of 2.6 years). Significant increases or decreases in any one of the inputs described above in isolation may result in significantly different fair value of the financial assets and liabilities using such Level 3 inputs. As discussed in Note 2, GAAP requires disclosure of fair value information about financial instruments, whether or not recognized in the statement of financial position, for which it is practicable to estimate that value. The following table details the carrying amount, face amount, and fair value of the financial instruments described in Note 2:
__________________ (1) Book value of loans receivable represents the face amount, net of CECL reserve, unamortized loan fees and costs and accrual of exit fees, as applicable. (2) Book value represents the face amount, net of deferred financing costs and discount. (3) Face value represents the face amount, net of discount. Estimates of fair value for cash, cash equivalents and restricted cash are measured using observable, quoted market prices, or Level 1 inputs. Estimates of fair value for loans receivable, mortgage-backed securities held-to-maturity, repurchase obligations, credit facility obligations and the collateralized loan and mortgage obligations are measured using unobservable inputs, or Level 3 inputs. CMBS, Fair Value Option As discussed in the “Fair Value of Financial Instruments” section of Note 2 herein, the Company elected the fair value option for certain CMBS mortgage loans in an effort to eliminate an accounting mismatch resulting from consolidation of the related mortgage loans held in securitization trusts. As of September 30, 2023, the fair value and unpaid principal balance of these CMBS, excluding the notional value of interest-only securities and before consolidation of the securitization mortgage loans, were $33,230 and $36,469, respectively. As a result of the consolidation of the mortgage loans, the total fair value balance of $330,629 represents the Company's economic interest in the asset. The vast majority of this fair value (all except $33,230 at September 30, 2023) is eliminated in consolidation of the related mortgage obligations before arriving at the GAAP balance for the fair value option investment securities.
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Variable Interest Entities |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities | Variable Interest Entities Consolidated Variable Interest Entities The following table details the assets and liabilities of the Company's consolidated variable interest entities as of September 30, 2023 and December 31, 2022:
The Company has financed a portion of its loans through CLOs, which are considered VIEs. The Company has a controlling financial interest in the CLOs and, therefore, consolidates them on its balance sheets because the Company has both (i) the power to direct activities of the CLOs that most significantly affect the CLOs' economic performance and (ii) the obligation to absorb losses and the right to receive benefits of the CLOs that could potentially be significant to the CLOs. Assets held by the CLOs are restricted and can be used only to settle obligations of the CLOs. The liabilities are non-recourse to the Company and can only be satisfied from the assets of the CLOs. Investment Securities Mortgage loans and obligations held in securitization trusts consolidated in accordance with ASC 810 are structured as pass through entities that receive principal and interest on the underlying collateral and distribute those payments to the certificate holders. The assets and other instruments held by these securitization entities are restricted and can only be used to fulfill the obligations of the entity. Additionally, the obligations of the securitization entities do not have any recourse to the general credit of any other consolidated entities, nor to the Company as the primary beneficiary. The mortgage obligations initially represent investment securities on the balance sheet (pre-consolidation). Upon consolidation of the mortgage loans and obligations, the associated investment securities are eliminated, as is the interest income related to those securities. The inclusion of the assets and liabilities of the mortgage loans and obligations in which the Company is deemed the primary beneficiary has no economic effect on the Company. Its exposure to the obligations of mortgage loans and obligations held in securitization is generally limited to its investment in these entities. The Company is not obligated to provide, nor has provided, any financial support for any of these consolidated structures. Non-Consolidated Variable Interest Entities The Company invested in subordinated positions of CMBS trusts which are considered mortgage loans and obligations held in securitization trusts. The Company is not the primary beneficiary of the mortgage loans and obligations because it does not have the power to direct the activities that most significantly affect the mortgage loans and obligations' economic performance, nor does it provide guarantees or recourse to the mortgage loans and obligations other than standard representations and warranties and, therefore, does not consolidate the mortgage loans and obligations on its balance sheets. The Company has classified its investment in the CMBS as either held-to-maturity or available-for-sale debt securities that are included on the Company's consolidated balance sheets and are part of the Company's ongoing impairment review. The Company's maximum exposure to loss of the securities are limited to its book value of $317,117 as of September 30, 2023. The Company is not obligated to provide, nor has it provided financial support to these consolidated and non-consolidated mortgage loans and obligations.
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Commitments and Contingencies |
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Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company enters into contracts that contain a variety of indemnification provisions. The Company’s maximum exposure under these arrangements is unknown; however, the Company has not had prior claims or losses pursuant to these contracts. Management of FS Real Estate Advisor has reviewed the Company’s existing contracts and expects the risk of loss to the Company to be remote. The Company is not currently subject to any material legal proceedings and, to the Company’s knowledge, no material legal proceedings are threatened against the Company. From time to time, the Company may be party to certain legal proceedings in the ordinary course of business. While the outcome of any legal proceedings cannot be predicted with certainty, the Company does not expect that any such proceedings will have a material effect on its financial condition or results of operations. See Note 7 for a discussion of the Company’s commitments to FS Real Estate Advisor and its affiliates (including FS Investments) for the reimbursement of organization and offering costs funded by FS Investments and for the reimbursement of amounts paid or waived by FS Real Estate Advisor and Rialto under the expense limitation agreement.
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Derivative Instrument |
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Summary of Derivative Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instrument | Derivative Instrument The Company has entered into an interest rate cap contract in order to limit its exposure against the variability of future interest rates on its variable interest rate borrowing. The Company has not designated this derivative as a hedge for accounting purposes. The Company has not entered into a master netting arrangement with its third-party counterparty and does not offset on its consolidated balance sheets the fair value amount recorded for its derivative instrument. The table below provides additional information regarding the Company's derivative instrument as of September 30, 2023.
__________________ (1) Included in Other assets in the Company's consolidated balance sheets. The following table details the fair value of the Company's derivative financial instrument:
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Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | Basis of Presentation: The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP. The unaudited consolidated financial statements include both the Company’s accounts and the accounts of its wholly owned subsidiaries and variable interest entities, or VIEs, of which the Company is the primary beneficiary, as of September 30, 2023. All significant intercompany transactions have been eliminated in consolidation. In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. The Company has evaluated the impact of subsequent events through the date the unaudited consolidated financial statements were issued. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassifications | Reclassifications: Certain amounts in the unaudited consolidated financial statements as of and for the three and nine months ended September 30, 2023 and the audited consolidated financial statements as of and for the year ended December 31, 2022 may have been reclassified to conform to the classifications used to prepare the unaudited consolidated financial statements as of and for the three and nine months ended September 30, 2023. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Use of Estimates | Use of Estimates: The preparation of the unaudited consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principles of Consolidation | Principles of Consolidation: Financial Accounting Standards Board, or FASB, Accounting Standards Codification Topic 810—Consolidation, or ASC Topic 810, provides guidance on the identification of a VIE (an entity for which control is achieved through means other than voting rights) and the determination of which business enterprise, if any, should consolidate the VIE. An entity is considered a VIE if any of the following applies: (1) the equity investors (if any) lack one or more of the essential characteristics of a controlling financial interest; (2) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support; or (3) the equity investors have voting rights that are not proportionate to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. The Company consolidates VIEs in which it is considered to be the primary beneficiary. The primary beneficiary is defined as the entity having both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the VIE’s performance; and (2) the obligation to absorb losses and right to receive the returns from the VIE that would be significant to the VIE. The Company determines whether it is the primary beneficiary of an entity subject to consolidation based on a qualitative assessment of the VIE’s capital structure, contractual terms, nature of the VIE’s operations and purpose and the Company’s relative exposure to the related risks of the VIE on the date it becomes initially involved in the VIE. The Company reassesses its VIE determination with respect to an entity on an ongoing basis. For the Company's consolidated securitization VIEs, the third party ownership interests are reflected as liabilities in the Company's consolidated balance sheet because the beneficial interests payable to these third parties are legally issued in the form of debt. The Company's presentation of net income attributes earnings to controlling and non-controlling interests.
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Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash: The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company invests its cash in overnight institutional money market funds. As of September 30, 2023 and 2022, the Company's investment in overnight institutional money market funds was $138,344 and $49,725, respectively. The Company's uninvested cash is maintained with high credit quality financial institutions, which are members of the Federal Deposit Insurance Corporation. The Company's cash is held with major financial institutions and may at times exceed federally insured limits. Restricted cash primarily represents cash held in an account to fund additional collateral interests within the Company's collateralized loan obligations. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Receivable | Loans Receivable: The Company originates and purchases commercial real estate debt and related instruments generally to be held as long-term investments at amortized cost. Loans that the Company originates or purchases that the Company is unable to hold, or intends to sell or otherwise dispose of, in the foreseeable future are classified as held-for-sale and are carried at the lower of amortized cost or fair value. The Company's held-for-sale securities are subject to the adoption of ASU 2016-13, as discussed below. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed Securities | Mortgage-backed Securities: Mortgage-backed securities are classified as held-to-maturity or available-for-sale or accounted for under the fair value option. The Company determines the appropriate classification of its securities at the time they are acquired and evaluates the appropriateness of such classifications at each balance sheet date. Mortgage-backed securities are classified as held-to-maturity when the Company intends to, and has the ability to hold until maturity. Held-to-maturity securities are stated at amortized cost on the consolidated balance sheets. The Company’s remaining mortgage-backed securities are classified as either available-for-sale or accounted for under the fair value option and are reported at fair value on the consolidated balance sheets as components of Mortgage-backed securities, at fair value. The Company elected the fair value option for all mortgage-backed securities acquired during the three and nine months ended September 30, 2023. Changes in fair value for mortgage-backed securities accounted for under the fair value option are recorded in the consolidated statements of operations as a component of Net change in unrealized gain (loss) on mortgage-backed securities, fair value option. The Company chose to elect the fair value option in order to simplify the accounting treatment for its investment securities. The fair value option provides an option to elect fair value as an alternative measurement for selected financial instruments. The fair value option may be elected only upon the occurrence of certain specified events, including when the Company enters into an eligible firm commitment, at initial recognition of the financial instrument, as well as upon a business combination or consolidation of a subsidiary. The election is irrevocable unless a new election event occurs. Prior to the three and nine months ended September 30, 2023, all mortgage-backed securities acquired that were not classified as held-to-maturity were classified as available-for-sale, stated at fair value and the changes in fair value are recorded in other comprehensive income. The Company’s held-to-maturity and available-for-sale securities are subject to the adoption of ASU 2016-13, as discussed below. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Losses | Credit Losses: ASU 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326), or ASU 2016-13, became effective for the Company on January 1, 2023. ASU 2016-13 significantly changes how entities measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. ASU 2016-13 replaces the previous incurred loss model with a current expected credit loss (“CECL”) model for instruments measured at amortized cost. The CECL model applies to the Company's loans receivable, held-for-investment and its mortgage-backed securities held-to-maturity which are carried at amortized cost, including future funding commitments and accrued interest receivable related to those loans and securities. However, as permitted by ASC Topic 326, the Company has elected not to measure an allowance for credit losses on accrued interest receivable (which is classified separately on its consolidated balance sheets), but rather write off in a timely manner by reversing interest income and/or cease accruing interest that would likely be uncollectible. CECL requires an entity to consider historical loss experience, current conditions, and a reasonable and supportable forecast of the macroeconomic environment. Considering the lack of historical company data related to any realized loan losses since its inception, the Company elected to estimate its general CECL reserve by using a probability-weighted analytical model that considers the likelihood of default and loss-given-default for each individual loan. The credit loss model utilizes historical loss rates derived from a third party commercial real estate loan database with historical loan loss data beginning in 1998. The Company provides specific loan-level inputs which include loan-to-value, principal balances, property type, location, coupon, origination year, term, subordination, expected repayment dates, and property net operating income. The Company also considers qualitative and environmental factors, including, but not limited to, macroeconomic forecasts and business conditions and trends, concentration of credit and changes in the level of such concentrations. The reasonable and supportable forecast period is followed by an immediate reversion period back to historical loss rates. The Company's loans typically include commitments to fund incremental proceeds to its borrowers over the life of the loan, which future funding commitments are also subject to the CECL model. The CECL reserve related to future loan fundings is recorded as a component of Other liabilities on its consolidated balance sheets. This CECL reserve is estimated using the same process outlined above for its outstanding loan balances, and changes in this component of the CECL reserve will similarly impact its consolidated net income. For both the funded and unfunded portions of its loans, the Company considers its internal risk rating of each loan as the primary credit quality indicator underlying the assessment. FS Real Estate Advisor and Rialto perform a quarterly review of the Company's portfolio of loans. In connection with this review, FS Real Estate Advisor and Rialto assess the risk factors of each loan and assign a risk rating based on a variety of factors, including, without limitation, loan-to-value ratio, or LTV, debt yield, property type, geographic and local market dynamics, physical condition, cash flow volatility, leasing and tenant profile, loan structure and exit plan, and project sponsorship. Based on a 5-point scale, the Company's loans are rated "1" through "5," from less risk to greater risk, which ratings are defined as follows:
Impairment is indicated when it is deemed probable that the Company will not be able to collect all amounts due to it pursuant to the contractual terms of the loan. If a loan is determined to be impaired, the Company records the impairment as a specific CECL reserve. For determining a specific CECL reserve, financial instruments are assessed outside of the CECL model on an individual basis. For collateral dependent loans that the Company determines foreclosure of the collateral is probable, the Company measures the expected losses based on the differences between the fair value of the collateral and the amortized cost basis of the loan as of the measurement date. For collateral dependent loans where the Company determine foreclosure is not probable, a practical expedient to estimate expected losses is applied using the difference between the collateral’s fair value (less costs to sell the asset if repayment is expected through the sale of the collateral) and the amortized cost basis of the loan. These valuations require significant judgments, which include assumptions regarding capitalization rates, leasing, creditworthiness of major tenants, occupancy rates, availability of financing, exit plan, loan sponsorship, actions of other lenders, and other factors deemed necessary by FS Real Estate Advisor and Rialto. Actual losses, if any, could ultimately differ from these estimates. The Company adopted ASU 2016-13 using the modified-retrospective method for all financial assets measured at amortized cost. Prior to its adoption, the Company had no loan loss provisions on its consolidated balance sheets. The Company recorded a cumulative-effect adjustment to the opening retained earnings in its unaudited consolidated statement of changes in equity as of January 1, 2023. The following table details the impact of this adoption:
Separate provisions of ASC Topic 326 apply to the Mortgage-backed securities available-for-sale, which are carried at fair value with unrealized gains and losses reported as a component of Accumulated other comprehensive income (loss). The Company is required to establish an initial credit loss allowance for those available-for-sale securities that are purchased with credit deterioration (“PCD”) by grossing up the amortized cost basis of each security and providing an offsetting credit loss allowance for the difference between expected cash flows and contractual cash flows, both on a present value basis. As of the January 1, 2023 effective date, no such credit loss allowance gross-up was required on available-for-sale debt securities with PCD. The Company uses a discounted cash flow method to estimate and recognize a credit loss allowance on its available-for-sale securities. The credit loss allowance represents the difference between the security's amortized cost basis and the present value of expected cash flows. The credit loss allowance is limited to the difference between the security's fair value and its amortized cost. Changes in the credit loss allowance are recognized immediately in earnings as a component of (Increase) decrease in current expected credit loss reserve.
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Real Estate | Real Estate: In accordance with the guidance for business combinations, the Company determines whether the acquisition of a property qualifies as a business combination, which requires that the assets acquired and liabilities assumed constitute a business. If the property acquired is not a business, the Company accounts for the transaction as an asset acquisition. The guidance for business combinations states that when substantially all the fair value of the gross assets to be acquired is concentrated in a single identifiable asset or group of similar identifiable assets, the asset or set of assets is not a business. The one property acquisition to date was acquired in 2022 and was accounted for as an asset acquisition. Upon the acquisition of a property, the Company assesses the fair value of acquired tangible and intangible assets (including land, buildings, tenant improvements, “above-market” and “below-market” leases, acquired in-place leases, other identified intangible assets and assumed liabilities) and allocates the purchase price to the acquired assets and assumed liabilities. The Company assesses and considers fair value based on estimated cash flow projections that utilize discount and/or capitalization rates that it deems appropriate, as well as other available market information. Estimates of future cash flows are based on several factors including the historical operating results, known and anticipated trends and market and economic conditions. The Company capitalizes acquisition-related costs associated with asset acquisitions. The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant. The Company records acquired in-place lease values based on the Company’s evaluation of the specific characteristics of each tenant’s lease. The Company will record acquired above-market and below-market leases at their fair values which represents the present value of the difference between contractual rents of acquired leases and market rents at the time of the acquisition for the remaining lease term, discounted for tenant credit risks. The Company also considers an allocation of purchase price of other acquired intangibles, including acquired in-place leases that may have a customer relationship intangible value, including (but not limited to) the nature and extent of the existing relationship with the tenants, the tenants’ credit quality and expectations of lease renewals. Based on its acquisition to date, the Company’s allocation to customer relationship intangible assets has not been material. Intangible assets and intangible liabilities are recorded as a component of other assets and other liabilities, respectively, on the Company’s consolidated balance sheets. The amortization of acquired above-market, below-market, and in-place leases is recorded as an adjustment to rental operations, net, on the Company’s unaudited consolidated statements of operations. The cost of buildings and improvements includes the purchase price of the Company’s properties and any acquisition-related costs, along with any subsequent improvements to such properties. The Company’s investments in real estate are stated at cost and are generally depreciated on a straight-line basis over the estimated useful lives of the assets as follows:
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Fair Value of Financial Instruments | Fair Value of Financial Instruments: Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, or ASC Topic 820, defines fair value, establishes a framework for measuring fair value, and requires certain disclosures about fair value measurements under GAAP. Specifically, this guidance defines fair value based on exit price, or the price that would be received upon the sale of an asset or the transfer of a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 also establishes a fair value hierarchy that prioritizes and ranks the level of market price observability used in measuring financial instruments. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument, and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination, as follows: Level 1: Generally includes only unadjusted quoted prices that are available in active markets for identical financial instruments as of the reporting date. Level 2: Pricing inputs include quoted prices in active markets for similar instruments, quoted prices in less active or inactive markets for identical or similar instruments where multiple price quotes can be obtained, and other observable inputs, such as interest rates, yield curves, credit risks, and default rates. Level 3: Pricing inputs are unobservable for the financial instruments and include situations where there is little, if any, market activity for the financial instrument. 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. The estimated value of each asset reported at fair value using Level 3 inputs is determined by an internal committee comprised of members of senior management of FS Real Estate Advisor. Certain of the Company's assets are reported at fair value either (i) on a recurring basis, as of each quarter-end, or (ii) on a nonrecurring basis, as a result of impairment or other events. The Company generally values its assets recorded at fair value by either (i) discounting expected cash flows based on assumptions regarding the collection of principal and interest and estimated market rates, or (ii) obtaining assessments from third-party dealers. For collateral-dependent loans that are identified as impaired, the Company measures impairment by comparing FS Real Estate Advisor's estimation of fair value of the underlying collateral, less costs to sell, to the book value of the respective loan. These valuations may require significant judgments, which include assumptions regarding capitalization rates, leasing, creditworthiness of major tenants, occupancy rates, availability of financing, exit plan, loan sponsorship, actions of other lenders, and other factors deemed necessary by FS Real Estate Advisor and Rialto. The Company is also required by GAAP to disclose fair value information about financial instruments that are not otherwise reported at fair value in the Company's consolidated balance sheets, to the extent it is practicable to estimate a fair value for those instruments. These disclosure requirements exclude certain financial instruments and all non-financial instruments. The Company elected the fair value option for initial and subsequent recognition of the assets and liabilities of its consolidated securitization mortgage loans held in securitization trusts and the related CMBS investments. Interest income and interest expense associated with these loans are presented separately on the unaudited consolidated statements of operations. The Company separately presents the assets and liabilities of its consolidated securitization loans as individual line items on its consolidated balance sheets. The liabilities of its consolidated securitization loans consist solely of obligations to the bondholders of the related trusts, and are thus presented as a single line item entitled “Mortgage obligations issued by securitization trusts.” The assets of its consolidated securitization loans consist principally of loans. These assets in the aggregate are likewise presented as a single line item entitled “Mortgage loans held in securitization trusts.” The residual difference shown on its unaudited consolidated statements of operations in the line item “Unrealized gain (loss) on mortgage loans and obligations held in securitization trusts” represents the Company's beneficial interest in the mortgage loans. The securitization mortgage loan assets as a whole can only be used to settle the obligations of the consolidated mortgage loans. The assets of the Company's securitization mortgage loans are not individually accessible by the bondholders, which creates inherent limitations from a valuation perspective. The securitization mortgage loans in which the Company invests are “static”; that is, no reinvestment is permitted, and there is no active management of the underlying assets. In determining the fair value of the assets and liabilities of the securitization mortgage loans, the Company maximizes the use of observable inputs over unobservable inputs. Liabilities of the consolidated mortgage obligations: The Company's consolidated mortgage obligations generally represent bonds that are not owned by the Company directly. The majority of these are either traded in the marketplace or can be analogized to similar securities that are traded in the marketplace. For these liabilities, pricing is considered to be Level 2, where the valuation is based upon quoted prices for similar instruments traded in active markets. The Company generally utilizes third party pricing service providers for valuing these liabilities. In order to determine whether to utilize the valuations provided by third parties, the Company conducts an ongoing evaluation of their valuation methodologies and processes, as well as a review of the individual valuations themselves. In evaluating third party pricing for reasonableness, the Company considers a variety of factors, including market transaction information for the particular bond, market transaction information for bonds within the same trust, market transaction information for similar bonds, the bond’s ratings and the bond’s subordination levels. For the minority portion of the Company's consolidated mortgage obligations which consist of unrated or non-investment grade bonds that are not owned by the Company directly, pricing may be either Level 2 or Level 3. If independent third party pricing similar to that noted above is available, the Company considers the valuation to be Level 2. If such third party pricing is not available, the valuation is generated from model-based techniques that use significant unobservable assumptions, and the Company considers the valuation to be Level 3. For mortgage obligations classified as Level 3, valuation is determined based on discounted expected future cash flows which take into consideration expected duration and yields based on market transaction information, ratings, subordination levels, vintage and current market spread. Mortgage obligations may shift between Level 2 and Level 3 of the fair value hierarchy if the significant fair value inputs used to price the mortgage obligations become or cease to be observable. Assets of the consolidated mortgage loans: The individual assets of a mortgage loan are inherently incapable of precise measurement given their illiquid nature and the limitations on available information related to these assets. Because the Company's methodology for valuing these assets does not value the individual assets of a mortgage loan, but rather uses the value of the mortgage obligations as an indicator of the fair value of mortgage loan assets as a whole, the Company has determined that its valuations of mortgage loan assets in their entirety should be classified in Level 3 of the fair value hierarchy. The following methods and assumptions are used to estimate the fair value of other classes of financial instruments, for which it is practicable to estimate that value: •Cash and cash equivalents: The carrying amount of cash on deposit and in money market funds approximates fair value. •Restricted cash: The carrying amount of restricted cash approximates fair value. •Loans receivable held-for-investment, net: The fair values for these loans were estimated by FS Real Estate Advisor based on a discounted cash flow methodology taking into consideration factors, including capitalization rates, discount rates, leasing, occupancy rates, availability and cost of financing, exit plan, sponsorship, actions of other lenders, and indications of market value from other market participants. •Mortgage-backed securities, at fair value : The fair values for these investments were based on indicative deal quotes. •Mortgage-backed securities held-to-maturity: The fair values for these investments were estimated by FS Real Estate Advisor based on a discounted cash flow methodology pursuant to which a discount rate or market yield is used to discount the estimated future cash flows expected to be received from the underlying investment, which include both future principal and interest payments. Significant increases or decreases in the discount rate or market yield would result in a decrease or increase in the fair value measurement. •Collateralized loan obligations, repurchase agreements payable, credit facilities payable, and mortgage note payable: The fair values for these instruments were estimated based on the rate at which similar credit facilities would have currently been priced.
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Deferred Financing Costs | Deferred Financing Costs: Deferred financing costs include issuance and other costs related to the Company’s debt obligations. The deferred financing costs related to the Company’s collateralized loan obligations, repurchase agreements, and mortgage note payable, are recorded as a reduction in the net book value of the related liability on the Company's consolidated balance sheets. Deferred financing costs related to the Company’s revolving credit facilities and facilities that are undrawn as of the reporting date are recorded as an asset on the Company’s consolidated balance sheets. These costs are amortized as interest expense using the straight-line method over the term of the related obligation, which approximates the effective interest method. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition: Security transactions are accounted for on the trade date. The Company records interest income from its loans receivable portfolio on an accrual basis to the extent that the Company expects to collect such amounts. The Company does not accrue as a receivable interest or dividends on loans and securities if there is reason to doubt the collectability of such income. Discounts or premiums associated with the investment securities are amortized or accreted into interest income as a yield adjustment on the effective interest method, based on expected cash flows through the expected maturity date of the investment. On at least a quarterly basis, the Company reviews and, if appropriate, makes adjustments to its cash flow projections. The Company records dividend income on the ex-dividend date. Any loan origination fees to which the Company is entitled, loan exit fees, original issue discount and market discount are capitalized and such amounts are amortized as interest income over the respective term of the investment. Upon the prepayment of a loan or security, any unamortized loan origination fees to which the Company is entitled are recorded as fee income. The Company records prepayment premiums on loans and securities as fee income when it receives such amounts. Loans are considered past due when payments are not made in accordance with the contractual terms. The Company does not accrue as receivable interest on loans if it is not probable that such income will be collected. Unless the loan is both well secured and in the process of collection, loans are placed on non-accrual status when principal or interest is 120 days or more past due or when repayment of interest and principal is, in our judgment, in doubt. Interest payments received on non-accrual loans are generally recognized as interest income on a cash basis. If a full recovery of principal is doubtful, the cost recovery method is applied whereby any cash received is applied to the outstanding principal balance of the loan. Recognition of interest income on non-performing loans on an accrual basis is resumed when it is probable that the Company will be able to collect amounts due according to the contractual terms. As of September 30, 2023 and December 31, 2022, there were no loans with accrued interest past due 30 days or more, respectively.
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Offering Costs | Offering Costs: Offering costs primarily include, among other things, marketing expenses and printing, legal and due diligence fees and other costs pertaining to the Company’s continuous public offering of shares of its common stock, including the preparation of the registration statement and salaries and direct expenses of FS Real Estate Advisor’s personnel, employees of its respective affiliates and others while engaged in such activities. The Company may reimburse FS Real Estate Advisor and Rialto for any offering expenses that they incurred on the Company's behalf, up to a cap of 0.75% of gross proceeds raised after such time. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes: The Company elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, or the Code, commencing with its taxable year ended December 31, 2017. In order to maintain its status as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of its annual REIT taxable income to its stockholders. As a REIT, the Company generally will not be subject to federal income tax on income that it distributes to stockholders. If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal income tax on its taxable income at regular corporate income tax rates and generally will not be permitted to qualify for treatment as a REIT for federal income tax purposes for the four taxable years following the year during which qualification is lost unless the Internal Revenue Service grants the Company relief under certain statutory provisions. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Uncertainty in Income Taxes | Uncertainty in Income Taxes: The Company evaluates each of its tax positions to determine if they meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax benefits or liabilities in the unaudited consolidated financial statements. Recognition of a tax benefit or liability with respect to an uncertain tax position is required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Company recognizes interest and penalties, if any, related to unrecognized tax liabilities as income tax expense in the unaudited consolidated statements of operations. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholder Servicing Fees | Stockholder Servicing Fees: The Company follows the guidance in Accounting Standards Codification Topic 405, Liabilities, when accounting for stockholder servicing fees. The Company will pay stockholder servicing fees over time on its shares of Class T, Class S, Class D and Class M common stock as described in Note 7. The Company records stockholder servicing fees as a reduction to additional paid-in capital and records the related liability in an amount equal to its best estimate of the fees payable in relation to the shares of Class T, Class S, Class D and Class M common stock on the date such shares are issued. The liability will be reduced over time, as the fees are paid to the dealer manager, or adjusted if the fees are no longer payable. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share: The restricted stock units grant Class I shares issued to FS Real Estate Advisor and Rialto for payment of the administrative services fee are considered to be participating securities. The impact of these restricted stock units on basic and diluted earnings per common share ("EPS") has been calculated using the two-class method whereby earnings are allocated to the restricted stock units based on dividends declared and the restricted stock units' participation rights in undistributed earnings. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | Derivative Instruments: The Company uses interest rate caps to manage risks from fluctuations in interest rates. The Company has not designated any of these contracts as fair value or cash flow hedges for accounting purposes. The Company records its derivatives on its consolidated balance sheets at fair value and such amounts are included in Other assets. Any changes in the fair value of these derivatives are recorded in earnings. The valuation of the Company's interest rate caps is determined based on assumptions that management believes market participants would use in pricing, using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of the derivative. This analysis reflects the contractual terms of the derivative, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with those derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by the Company and its counterparties. However, as of September 30, 2023, the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and determined that the credit valuation adjustments are not significant to the overall valuation of the Company’s derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy.
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Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash in the Company’s unaudited consolidated balance sheets to the total amount shown in the Company’s unaudited consolidated statements of cash flows:
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Schedule of Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash in the Company’s unaudited consolidated balance sheets to the total amount shown in the Company’s unaudited consolidated statements of cash flows:
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Summary of Internal Risk Ratings | Based on a 5-point scale, the Company's loans are rated "1" through "5," from less risk to greater risk, which ratings are defined as follows:
The following table allocates the net book value of the Company's loans receivable, held-for-investment portfolio based on the Company's internal risk ratings:
The Company's primary credit quality indicator is its risk ratings, which are further discussed in Note 2. The following table presents the net book value of its loans receivable, held-for-investment portfolio as of September 30, 2023 by year of origination and risk rating:
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Schedule of Impact of ASU 2016-13 Adoption | The following table details the impact of this adoption:
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Summary of Useful Lives of Investments in Real Estate | The Company’s investments in real estate are stated at cost and are generally depreciated on a straight-line basis over the estimated useful lives of the assets as follows:
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Loans Receivable, net (Tables) |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Loans Receivable Portfolio | The following table details overall statistics for the Company's loans receivable portfolio as of September 30, 2023 and December 31, 2022:
_________________________ (1) The Company may be required to provide funding when requested by the borrowers in accordance with the terms of the underlying agreements. (2) The Company's floating rate loans are expressed as a spread over the relevant benchmark rates, which include the Secured Overnight Financing Rate, or SOFR. In addition to cash coupon, all-in yield includes accretion of discount (amortization of premium) and accrual of exit fees. (3) As of September 30, 2023, the one-month SOFR rate was 5.32%. As of December 31, 2022, the one-month LIBOR rate was 4.39% and the one-month SOFR rate was 4.36%. (4) Maximum maturity assumes all extension options are exercised by the borrowers; however, loans may be repaid prior to such date. For the nine months ended September 30, 2023 and 2022, the activity in the Company's loan portfolio, was as follows:
The following tables detail the property type and geographic location of the properties securing the loans in the Company's loans receivable, held-for-investment portfolio as of September 30, 2023 and December 31, 2022:
__________________________ (1) As defined by the United States Department of Commerce, Bureau of the Census.
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Summary of Loans by Year of Origination and Risk Rating | Based on a 5-point scale, the Company's loans are rated "1" through "5," from less risk to greater risk, which ratings are defined as follows:
The following table allocates the net book value of the Company's loans receivable, held-for-investment portfolio based on the Company's internal risk ratings:
The Company's primary credit quality indicator is its risk ratings, which are further discussed in Note 2. The following table presents the net book value of its loans receivable, held-for-investment portfolio as of September 30, 2023 by year of origination and risk rating:
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Summary of Allowance for Credit Loss on Financing Receivable | The following table provides details on the changes in CECL reserve for funded loans by investment pool:
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Mortgage Backed Securities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Available-for-Sale Debt Securities | The table below summarizes various attributes of the Company's investments in CMBS reported at fair value as of September 30, 2023 and December 31, 2022, respectively.
__________________________ (1) Calculated using the one-month SOFR rate of 5.32% as of September 30, 2023. (2) Calculated using the one-month LIBOR rate of 4.39% and the one-month SOFR rate of 4.36% as of December 31, 2022.
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Schedule of Debt Securities Under Fair Value Option | The table below summarizes various attributes of the Company's investments in CMBS reported at fair value as of September 30, 2023 and December 31, 2022, respectively.
__________________________ (1) Calculated using the one-month SOFR rate of 5.32% as of September 30, 2023. (2) Calculated using the one-month LIBOR rate of 4.39% and the one-month SOFR rate of 4.36% as of December 31, 2022.
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Schedule of Recognize an Allowance for Its Available-for Sale Securities | The Company uses a discounted cash flow method to estimate and recognize an allowance for its available-for sale securities. The following table provides details on the changes in allowance for credit losses for available-for sale securities:
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Schedule of Available-for-sale an Unrealized Loss Position | The following table presents the gross unrealized losses and estimated fair value of any available-for-sale securities for which an allowance for credit losses has not been recorded that were in an unrealized loss position as of September 30, 2023 and December 31, 2022, respectively.
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Summary of Investment Held-to-maturity CMBS | The table below summarizes various attributes of the Company's investments in held-to-maturity CMBS as of September 30, 2023 and December 31, 2022, respectively.
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Schedule of Activity in CECL Reserve for Held-to Maturity CMBS | The following table provides details on the changes in CECL reserve for held-to-maturity CMBS:
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Summary of Maturities of Investment Held-to-maturity CMBS | The table below summarizes the maturities of the Company's investments in held-to-maturity CMBS as of September 30, 2023 and December 31, 2022, respectively:
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Real Estate (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Real Estate Investments | Investment in real estate, net, consisted of the following as of September 30, 2023 and December 31, 2022:
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table details the Company's future amortization of intangible assets for each of the next five years and thereafter:
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Schedule of Rental Operations | The components of rental operations, net on the Company's unaudited consolidated statements of operations consisted of the following:
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Financing Arrangements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Information of Outstanding Financing Arrangement | The following tables present summary information with respect to the Company's outstanding financing arrangements as of September 30, 2023 and December 31, 2022.
________________ (1) The amount outstanding under the facilities approximates their fair value. (2) The rates are expressed over the relevant floating benchmark rates, which include Term SOFR, and SOFR Average (compounded average of SOFR over a rolling 30-day period). (3) Benchmark rate is subject to a 0.00% floor. SOFR benchmark rate is selected with respect to a transaction as set forth in the related transaction confirmation for the underlying transaction. (4) Term SOFR is subject to a 0.00% floor. GS-1 and Goldman Sachs may mutually agree on rates outside this range or a different floor on an asset by asset basis. (5) Term SOFR or SOFR Average (compounded average of SOFR over a rolling 30-day period), subject to a 0.00% floor. (6) Term SOFR is subject to a 0.00% floor. (7) The rate applicable under the MM-1 Facility is subject to a credit spread adjustment of 0.11%, which was included when the benchmark transitioned from USD LIBOR to Term SOFR. (8) Borrowings under the Barclays Facility bear interest, at the Company's election, at either a base rate plus a spread of 1.25% per annum or one-, three- or six-month Term SOFR plus a spread of 2.25% per annum and a credit spread adjustment of 0.10% per annum.
_______________________ (1) The amount outstanding under the facilities approximates their fair value. (2) The rates are expressed over the relevant floating benchmark rates, which include USD LIBOR, Term SOFR, and SOFR Average (compounded average of SOFR over a rolling 30-day period). (3) USD LIBOR is subject to a 0.00% floor. (4) Benchmark rate is subject to a 0.00% floor. LIBOR or SOFR benchmark rate is selected with respect to a transaction as set forth in the related transaction confirmation for the underlying transaction. (5) Term SOFR is subject to a 0.00% floor. GS-1 and Goldman Sachs may mutually agree on rates outside this range or a different floor on an asset by asset basis. (6) USD LIBOR, Term SOFR or SOFR Average (compounded average of SOFR over a rolling 30-day period), subject to a 0.00% floor. (7) Term SOFR is subject to a 0.00% floor. (8) The rate applicable under the MM-1 Facility is subject to a credit spread adjustment of 0.11%, which was included when the benchmark transitioned from USD LIBOR to Term SOFR. (9) Borrowings under the Barclays Facility bear interest, at the Company's election, at either a base rate plus a spread of 1.25% per annum or one-, three- or six-month Term SOFR plus a spread of 2.25% per annum and a credit spread adjustment of 0.10% per annum.
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Summary of Repayment for Secured Financings Outstanding | The following table sets forth the Company's repayment schedule for secured financings outstanding as of September 30, 2023 based on the maturity date of each financing arrangement:
_______________________ (1) The allocation of repayments under the Company's collateralized loan obligations is based on the maturity date of each agreement, or the maximum maturity date assuming all extension options are exercised by the borrower if the reinvestment period has expired.
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Summary of Number of Loans and the Principal Balance | The following table outlines the number of loans, including partial loans, and the principal balance of the collateralized pool of interests for each CLO.
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Summary of Net Book Value of Debt Instrument | The following table outlines the net book value of the Company's CLOs on its consolidated balance sheets.
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Related Party Transactions (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions | The following table describes the fees and expenses accrued under the advisory agreement and sub-advisory agreement during the nine months ended September 30, 2023 and 2022:
_______________________ (1) During the nine months ended September 30, 2023, FS Real Estate Advisor received $23,949, in cash as payment for management fees. During the nine months ended September 2022, FS Real Estate Advisor received $2,007 in cash and $11,409 of performance contingent rights were issued as payment for management fees. As of September 30, 2023 and 2022, there were $9,088 and $0 base management fees payable to FS Real Estate Advisor. (2) During the nine months ended September 30, 2023 and 2022, $16,160 and $557, respectively, in performance fees were paid to FS Real Estate Advisor. As of September 30, 2023, there were $6,354 performance fees payable to FS Real Estate Advisor. (3) During the nine months ended September 30, 2022, $7,978, of the accrued administrative services expenses related to the allocation of costs of administrative personnel for services rendered to the Company by FS Real Estate Advisor and Rialto and the remainder related to other reimbursable expenses. These amounts are recorded as general and administrative expenses on the accompanying unaudited consolidated statements of operations. (4) On December 1, 2022, the Company's method for reimbursing administrative services expense was replaced with an administrative services fee equal to 1.0% of the Company’s net asset value per annum attributable to all shares of common stock, before giving effect to any accruals for the base management fee, the performance fee, the administrative services fee, the stockholder servicing fee or any distributions. (5) During the nine months ended September 30, 2023 and 2022, $214 and $193, respectively, in valuation fees were paid by the Company to Rialto.The following table reflects the amounts paid or waived by FS Real Estate Advisor and Rialto under the expense limitation agreement and the expiration date for future possible reimbursements by the Company:
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Stockholders' Equity (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Common Stock Transactions | Stockholders' Equity Below is a summary of transactions with respect to shares of the Company's common stock during the nine months ended September 30, 2023 and 2022:
_______________________ (1) Stockholder servicing fees only apply to Class T, Class S, Class D and Class M shares. Under GAAP, the Company accrues future stockholder servicing fees in an amount equal to its best estimate of fees payable to FS Investment Solutions at the time such shares are sold. For purposes of NAV, the Company recognizes the stockholder servicing fee as a reduction of NAV on a monthly basis. As a result, the estimated liability for the future stockholder servicing fees, which are accrued at the time each share is sold, will have no effect on the NAV of any class.
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Summary of Cash Distributions Per Share that Paid on its Common Stock | The following table reflects the cash distributions per share that the Company paid on its common stock during the nine months ended September 30, 2023:
The following table reflects the amount of cash distributions that the Company paid on its common stock during the nine months ended September 30, 2023, and 2022:
______________________ (1) Cash flows from operating activities are supported by expense support payments from FS Real Estate Advisor and Rialto pursuant to the Company's expense limitation agreement. See Note 7 for additional information regarding the Company's expense limitation agreement.
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Schedule of Cash Distribution on Class of Common Stock | The Company currently declares and pays regular cash distributions on a monthly basis. The Company’s board of directors previously authorized regular monthly cash distributions for October 2023 for each class of its outstanding common stock in the net distribution amounts per share set forth below:
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Fair Value of Financial Instruments (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Financial Assets and Liabilities Carried at Fair Value | The following table presents the Company's financial assets and liabilities carried at fair value in the consolidated balance sheets by its level in the fair value hierarchy:
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Summary of Changes in Fair Value of Financial Assets Which Are Measured at Fair Value on a Recurring Basis | The following table presents the changes in fair value of financial assets which are measured at fair value on a recurring basis using Level 3 inputs to determine fair value for the nine months ended September 30, 2023:
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Summary of Carrying Amount, Face Amount, and Fair Value of Financial Instruments | The following table details the carrying amount, face amount, and fair value of the financial instruments described in Note 2:
__________________ (1) Book value of loans receivable represents the face amount, net of CECL reserve, unamortized loan fees and costs and accrual of exit fees, as applicable. (2) Book value represents the face amount, net of deferred financing costs and discount. (3) Face value represents the face amount, net of discount.
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Variable Interest Entities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Detailed Information About the Assets and Liabilities | The following table details the assets and liabilities of the Company's consolidated variable interest entities as of September 30, 2023 and December 31, 2022:
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Derivative Instrument (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Derivative Instruments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Derivative Instruments | The table below provides additional information regarding the Company's derivative instrument as of September 30, 2023.
__________________ (1) Included in Other assets in the Company's consolidated balance sheets.
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Summary of Fair Value of the Company Derivative Financial Instrument | The following table details the fair value of the Company's derivative financial instrument:
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Principal Business and Organization (Details) - Class T, Class S, Class D, Class M and Class I shares - Maximum |
9 Months Ended |
---|---|
Sep. 30, 2023
USD ($)
| |
Subsidiary, Sale of Stock [Line Items] | |
Common stock value submitted for approval under initial public offering | $ 2,750,000 |
Primary Offering | |
Subsidiary, Sale of Stock [Line Items] | |
Common stock value submitted for approval under initial public offering | 2,500,000 |
Distribution Reinvestment Plan | |
Subsidiary, Sale of Stock [Line Items] | |
Common stock value submitted for approval under initial public offering | $ 250,000 |
Summary of Significant Accounting Policies - Additional Information (Details) |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 30, 2023
USD ($)
|
Sep. 30, 2022
USD ($)
|
Dec. 31, 2022
asset_acquisition
|
|
Accounting Policies [Abstract] | |||
Cash investment in money market fund | $ 138,344,000 | $ 49,725,000 | |
Number of asset acquisitions | asset_acquisition | 1 | ||
Percentage of reimbursement revenue | 0.75% | ||
Offering costs incurred | $ 23,659,000 | ||
Unrecognized interest or penalties | 0 | $ 0 | |
Accrued unrecognized interest or penalties | $ 0 |
Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|---|---|
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 166,940 | $ 183,665 | $ 147,321 | |
Restricted cash | 47,935 | 17,953 | 26,121 | |
Total cash, cash equivalents and restricted cash | $ 214,875 | $ 201,618 | $ 173,442 | $ 85,808 |
Summary of Significant Accounting Policies - Schedule Of Impact Of ASU 2016-13 Adoption (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Jan. 01, 2022 |
---|---|---|---|---|---|---|
Loans receivable, held-for-investment | ||||||
CECL reserve on Loans receivable, held-for-investment | $ 72,270 | $ 74,606 | $ 41,021 | $ 0 | $ 0 | |
CECL reserve on Mortgage-backed securities held-to-maturity | 71 | 388 | 656 | 0 | ||
Liabilities | ||||||
CECL reserve on unfunded loan commitments | 1,636 | $ 1,766 | $ 1,131 | 0 | ||
Total impact of 2016-13 adoption on retained earnings | $ (53,300) | 13,448 | ||||
Cumulative Effect, Period of Adoption, Adjustment | ||||||
Loans receivable, held-for-investment | ||||||
CECL reserve on Loans receivable, held-for-investment | 39,419 | |||||
CECL reserve on Mortgage-backed securities held-to-maturity | 939 | |||||
Liabilities | ||||||
CECL reserve on unfunded loan commitments | $ 1,163 | |||||
Impact of ASU 2016-13 Adoption | Cumulative Effect, Period of Adoption, Adjustment | ||||||
Loans receivable, held-for-investment | ||||||
CECL reserve on Loans receivable, held-for-investment | $ 39,419 | |||||
CECL reserve on Mortgage-backed securities held-to-maturity | 939 | |||||
Liabilities | ||||||
CECL reserve on unfunded loan commitments | 1,163 | |||||
Total impact of 2016-13 adoption on retained earnings | 41,521 | |||||
Impact of ASU 2016-13 Adoption | Cumulative Effect, Period of Adoption, Adjustment | Senior loans | ||||||
Loans receivable, held-for-investment | ||||||
CECL reserve on Loans receivable, held-for-investment | 35,456 | |||||
Impact of ASU 2016-13 Adoption | Cumulative Effect, Period of Adoption, Adjustment | Mezzanine loans | ||||||
Loans receivable, held-for-investment | ||||||
CECL reserve on Loans receivable, held-for-investment | $ 3,963 |
Summary of Significant Accounting Policies - Summary of Useful Lives of Investments in Real Estate (Details) |
Sep. 30, 2023 |
---|---|
Minimum | Building | |
Property, Plant and Equipment [Line Items] | |
Depreciable life | 30 years |
Minimum | Building and land improvements | |
Property, Plant and Equipment [Line Items] | |
Depreciable life | 2 years |
Minimum | Furniture, fixtures and equipment | |
Property, Plant and Equipment [Line Items] | |
Depreciable life | 1 year |
Maximum | Building | |
Property, Plant and Equipment [Line Items] | |
Depreciable life | 42 years |
Maximum | Building and land improvements | |
Property, Plant and Equipment [Line Items] | |
Depreciable life | 20 years |
Maximum | Furniture, fixtures and equipment | |
Property, Plant and Equipment [Line Items] | |
Depreciable life | 10 years |
Loans Receivable, net - Summary of Details Overall Statistics for Loans Receivable Portfolio (Details) $ in Thousands |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 30, 2023
USD ($)
loan
|
Dec. 31, 2022
USD ($)
loan
|
Sep. 30, 2022
USD ($)
|
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of loans | loan | 143 | 142 | |
Principal balance | $ 7,735,561 | $ 7,350,271 | |
Net Book Value | 7,665,632 | 7,350,315 | $ 7,091,841 |
Unfunded loan commitments | $ 456,666 | $ 574,510 | |
Weighted-average cash coupon | 3.90% | 3.83% | |
Weighted average all-in yield | 3.97% | 3.90% | |
Weighted-average maximum maturity (years) | 3 years 3 months 18 days | 4 years | |
LIBOR | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Variable Rate | 4.39% | ||
SOFR | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Variable Rate | 5.32% | 4.36% |
Loans Receivable, net - Summary of Activity in Loan Portfolio (Details) - USD ($) $ in Thousands |
9 Months Ended | ||||
---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
|
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Losses [Roll Forward] | |||||
Loans receivable at beginning of period | $ 7,350,315 | $ 3,841,868 | |||
Loan fundings | 1,014,971 | 3,731,304 | |||
Loan repayments | (631,692) | (483,832) | |||
Amortization of deferred fees on loans | 5,159 | 2,973 | |||
Exit and extension fees received on loans receivable | (851) | (472) | |||
Loans receivable at end of period | 7,737,902 | 7,091,841 | |||
CECL reserve | (72,270) | 0 | $ (74,606) | $ (41,021) | $ 0 |
Net Book Value | $ 7,665,632 | $ 7,091,841 | $ 7,350,315 |
Loans Receivable, net - Loan Receivables Acquired By Property (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2023 |
Dec. 31, 2022 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Sep. 30, 2022 |
Dec. 31, 2021 |
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable at end of period | $ 7,737,902 | $ 7,350,315 | $ 7,091,841 | $ 3,841,868 | ||
CECL reserve | (72,270) | 0 | $ (74,606) | $ (41,021) | 0 | |
Net Book Value | $ 7,665,632 | $ 7,350,315 | $ 7,091,841 | |||
Percentage | 100.00% | 100.00% | ||||
Multifamily | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable at end of period | $ 4,752,761 | $ 4,439,830 | ||||
Percentage | 61.00% | 61.00% | ||||
Hospitality | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable at end of period | $ 1,025,990 | $ 792,305 | ||||
Percentage | 13.00% | 11.00% | ||||
Office | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable at end of period | $ 678,392 | $ 755,797 | ||||
Percentage | 9.00% | 10.00% | ||||
Industrial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable at end of period | $ 573,407 | $ 369,551 | ||||
Percentage | 7.00% | 5.00% | ||||
Retail | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable at end of period | $ 268,112 | $ 424,374 | ||||
Percentage | 4.00% | 6.00% | ||||
Self Storage | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable at end of period | $ 200,490 | $ 317,861 | ||||
Percentage | 3.00% | 4.00% | ||||
Various | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable at end of period | $ 142,919 | $ 156,031 | ||||
Percentage | 2.00% | 2.00% | ||||
Mixed Use | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable at end of period | $ 95,831 | $ 94,566 | ||||
Percentage | 1.00% | 1.00% |
Loans Receivable, net - Loan Receivables Acquired By Geographic Area (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2023 |
Dec. 31, 2022 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Sep. 30, 2022 |
Dec. 31, 2021 |
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable at end of period | $ 7,737,902 | $ 7,350,315 | $ 7,091,841 | $ 3,841,868 | ||
CECL reserve | (72,270) | 0 | $ (74,606) | $ (41,021) | 0 | |
Net Book Value | $ 7,665,632 | $ 7,350,315 | $ 7,091,841 | |||
Percentage | 100.00% | 100.00% | ||||
South | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable at end of period | $ 3,753,978 | $ 3,719,093 | ||||
Percentage | 49.00% | 51.00% | ||||
West | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable at end of period | $ 1,546,279 | $ 1,487,391 | ||||
Percentage | 20.00% | 20.00% | ||||
Northeast | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable at end of period | $ 1,430,235 | $ 1,326,408 | ||||
Percentage | 18.00% | 18.00% | ||||
Various | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable at end of period | $ 688,390 | $ 507,105 | ||||
Percentage | 9.00% | 7.00% | ||||
Midwest | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable at end of period | $ 319,020 | $ 310,318 | ||||
Percentage | 4.00% | 4.00% |
Loans Receivable, net - Summary of Loans Receivable Based on Internal Risk Ratings (Details) $ in Thousands |
9 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2023
USD ($)
loan
|
Dec. 31, 2022
USD ($)
loan
|
Jun. 30, 2023
USD ($)
|
Mar. 31, 2023
USD ($)
|
Sep. 30, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
|
|
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Number of Loans | loan | 143 | 142 | ||||
Net Book Value | $ 7,737,902 | $ 7,350,315 | $ 7,091,841 | $ 3,841,868 | ||
CECL reserve | (72,270) | 0 | $ (74,606) | $ (41,021) | 0 | |
Net Book Value | $ 7,665,632 | $ 7,350,315 | $ 7,091,841 | |||
Percentage | 100.00% | 100.00% | ||||
1 | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Number of Loans | loan | 0 | 0 | ||||
Net Book Value | $ 0 | $ 0 | ||||
Percentage | 0.00% | 0.00% | ||||
2 | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Number of Loans | loan | 0 | 0 | ||||
Net Book Value | $ 0 | $ 0 | ||||
Percentage | 0.00% | 0.00% | ||||
3 | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Number of Loans | loan | 132 | 142 | ||||
Net Book Value | $ 7,293,831 | $ 7,350,315 | ||||
Percentage | 95.00% | 100.00% | ||||
4 | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Number of Loans | loan | 10 | 0 | ||||
Net Book Value | $ 407,584 | $ 0 | ||||
Percentage | 5.00% | 0.00% | ||||
5 | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Number of Loans | loan | 1 | 0 | ||||
Net Book Value | $ 36,487 | $ 0 | ||||
Percentage | 0.00% | 0.00% |
Loans Receivable, net - Summary of Allowance For Credit Loss On Financing Receivable (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Sep. 30, 2023 |
|
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
CECL reserve, beginning balance | $ 74,606 | $ 41,021 | $ 0 | $ 0 |
Increase in CECL Reserves | 2,336 | 1,602 | 32,851 | |
CECL reserve, ending balance | 72,270 | 74,606 | 41,021 | 72,270 |
General Credit Loss Reserve | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Increase in CECL Reserves | (2,336) | 30,618 | ||
Specific Credit Loss Reserve | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Increase in CECL Reserves | 0 | 2,967 | ||
Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
CECL reserve, beginning balance | 39,419 | 39,419 | ||
Senior loans | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
CECL reserve, beginning balance | 69,103 | 36,680 | 0 | 0 |
Increase in CECL Reserves | 1,224 | |||
CECL reserve, ending balance | 66,812 | 69,103 | 36,680 | 66,812 |
Senior loans | General Credit Loss Reserve | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Increase in CECL Reserves | (2,291) | 29,456 | ||
Senior loans | Specific Credit Loss Reserve | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Increase in CECL Reserves | 0 | 2,967 | ||
Senior loans | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
CECL reserve, beginning balance | 35,456 | 35,456 | ||
Mezzanine loans | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
CECL reserve, beginning balance | 5,503 | 4,341 | 0 | 0 |
Increase in CECL Reserves | 378 | |||
CECL reserve, ending balance | 5,458 | 5,503 | 4,341 | 5,458 |
Mezzanine loans | General Credit Loss Reserve | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Increase in CECL Reserves | (45) | 1,162 | ||
Mezzanine loans | Specific Credit Loss Reserve | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Increase in CECL Reserves | $ 0 | $ 0 | ||
Mezzanine loans | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
CECL reserve, beginning balance | $ 3,963 | $ 3,963 |
Loans Receivable, net - Additional Information (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|---|
Sep. 30, 2023
USD ($)
|
Jun. 30, 2023
USD ($)
|
Mar. 31, 2023
USD ($)
|
Sep. 30, 2023
USD ($)
loan
|
Dec. 31, 2022
USD ($)
loan
|
Sep. 30, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
|
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
CECL reserve | $ 72,270 | $ 74,606 | $ 41,021 | $ 72,270 | $ 0 | $ 0 | |
CECL reserve against its loans receivable portfolio | 2,336 | 1,602 | $ 32,851 | ||||
Number of loans | loan | 143 | 142 | |||||
Net Book Value | 7,665,632 | $ 7,665,632 | $ 7,350,315 | 7,091,841 | |||
Loans receivable at end of period | 7,737,902 | 7,737,902 | 7,350,315 | $ 7,091,841 | $ 3,841,868 | ||
Unfunded loan commitments | 456,666 | 456,666 | 574,510 | ||||
CECL reserve on unfunded loan commitments | 1,636 | 1,766 | 1,131 | 1,636 | 0 | ||
Increase (decrease) in CECL reserve | (130) | 635 | (32) | $ 473 | |||
Cumulative Effect, Period of Adoption, Adjustment | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
CECL reserve | 39,419 | ||||||
CECL reserve on unfunded loan commitments | $ 1,163 | ||||||
5 | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Number of loans | loan | 1 | 0 | |||||
Loans receivable at end of period | 36,487 | $ 36,487 | $ 0 | ||||
Specific Credit Loss Reserve | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
CECL reserve against its loans receivable portfolio | 0 | 2,967 | |||||
Senior loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
CECL reserve | 66,812 | 69,103 | 36,680 | 66,812 | 0 | ||
CECL reserve against its loans receivable portfolio | 1,224 | ||||||
CECL reserve on unfunded loan commitments | 1,612 | 1,734 | 1,096 | 1,612 | 0 | ||
Increase (decrease) in CECL reserve | (122) | 638 | $ (33) | ||||
Senior loans | Cumulative Effect, Period of Adoption, Adjustment | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
CECL reserve | 35,456 | ||||||
CECL reserve on unfunded loan commitments | $ 1,129 | ||||||
Senior loans | 5 | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Net Book Value | 36,500 | 36,500 | |||||
Loans receivable at end of period | 36,487 | 36,487 | |||||
Unfunded loan commitments | 9,600 | 9,600 | |||||
Senior loans | Specific Credit Loss Reserve | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
CECL reserve against its loans receivable portfolio | 0 | $ 2,967 | |||||
Senior loans | Specific Credit Loss Reserve | 5 | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
CECL reserve against its loans receivable portfolio | $ 2,967 | $ 2,967 | |||||
Capitalization Rate | 5 | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Measurement input | 0.0725 | 0.0725 | |||||
Discount Rate | 5 | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Measurement input | 0.0925 | 0.0925 |
Loans Receivable, net - Summary of Net Book Value of Loans Receivable by Year of Origination (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|---|---|---|---|
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
2023 | $ 639,009 | |||||
2022 | 4,083,637 | |||||
2021 | 2,790,991 | |||||
2020 | 101,972 | |||||
2019 | 80,843 | |||||
Prior | 41,450 | |||||
Total | 7,737,902 | $ 7,350,315 | $ 7,091,841 | $ 3,841,868 | ||
CECL reserve | (72,270) | $ (74,606) | $ (41,021) | 0 | 0 | |
Net Book Value | 7,665,632 | 7,350,315 | $ 7,091,841 | |||
1 | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
2023 | 0 | |||||
2022 | 0 | |||||
2021 | 0 | |||||
2020 | 0 | |||||
2019 | 0 | |||||
Prior | 0 | |||||
Total | 0 | 0 | ||||
2 | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
2023 | 0 | |||||
2022 | 0 | |||||
2021 | 0 | |||||
2020 | 0 | |||||
2019 | 0 | |||||
Prior | 0 | |||||
Total | 0 | 0 | ||||
3 | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
2023 | 639,009 | |||||
2022 | 3,758,801 | |||||
2021 | 2,704,837 | |||||
2020 | 84,303 | |||||
2019 | 65,431 | |||||
Prior | 41,450 | |||||
Total | 7,293,831 | 7,350,315 | ||||
4 | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
2023 | 0 | |||||
2022 | 324,836 | |||||
2021 | 49,667 | |||||
2020 | 17,669 | |||||
2019 | 15,412 | |||||
Prior | 0 | |||||
Total | 407,584 | 0 | ||||
5 | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
2023 | 0 | |||||
2022 | 0 | |||||
2021 | 36,487 | |||||
2020 | 0 | |||||
2019 | 0 | |||||
Prior | 0 | |||||
Total | $ 36,487 | $ 0 |
Loans Receivable, net - Credit Loss Reserve on Unfunded Commitments (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Sep. 30, 2023 |
|
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward] | ||||
CECL reserved beginning of period | $ 1,766 | $ 1,131 | $ 0 | $ 0 |
Increase (decrease) in CECL reserve | (130) | 635 | (32) | 473 |
CECL reserved end of period | 1,636 | 1,766 | 1,131 | 1,636 |
Cumulative Effect, Period of Adoption, Adjustment | ||||
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward] | ||||
CECL reserved beginning of period | 1,163 | 1,163 | ||
Senior loans | ||||
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward] | ||||
CECL reserved beginning of period | 1,734 | 1,096 | 0 | 0 |
Increase (decrease) in CECL reserve | (122) | 638 | (33) | |
CECL reserved end of period | 1,612 | 1,734 | 1,096 | 1,612 |
Senior loans | Cumulative Effect, Period of Adoption, Adjustment | ||||
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward] | ||||
CECL reserved beginning of period | 1,129 | 1,129 | ||
Mezzanine Loans | ||||
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward] | ||||
CECL reserved beginning of period | 32 | 35 | 0 | 0 |
Increase (decrease) in CECL reserve | (8) | (3) | 1 | |
CECL reserved end of period | $ 24 | $ 32 | 35 | 24 |
Mezzanine Loans | Cumulative Effect, Period of Adoption, Adjustment | ||||
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward] | ||||
CECL reserved beginning of period | $ 34 | $ 34 |
Mortgage Backed Securities - Schedule of Available-for-sale Securities Reconciliation (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|
Debt Securities, Available-for-Sale [Line Items] | ||||
Allowance for Credit Losses | $ (9,674) | $ (6,992) | $ 0 | $ 0 |
Weighted-average cash coupon | 3.90% | 3.83% | ||
LIBOR | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Variable Rate | 4.39% | |||
SOFR | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Variable Rate | 5.32% | 4.36% | ||
Commercial Mortgage Backed Securities | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Outstanding Face Amount | $ 172,392 | $ 173,207 | ||
Amortized Cost Basis | 169,739 | 171,369 | ||
Allowance for Credit Losses | (9,674) | 0 | ||
Gross Unrealized Gains | 96 | 45 | ||
Gross Unrealized Losses | (8,226) | (11,950) | ||
Fair Value | $ 151,935 | $ 159,464 | ||
Weighted-average cash coupon | 10.06% | 9.18% | ||
Weighted Average Remaining Duration (years) | 14 years 8 months 12 days | 12 years 8 months 12 days | ||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Outstanding Face Amount | $ 75,830 | |||
Amortized Cost Basis | 72,835 | |||
Allowance for Credit Losses | 0 | |||
Gross unrealized gains | 406 | |||
Gross unrealized losses | (81) | |||
Fair Value | $ 73,160 | |||
Weighted-average cash coupon | 7.30% | |||
Weighted Average Remaining Duration (years) | 2 years 9 months 18 days |
Mortgage Backed Securities - Schedule of Recognize an Allowance for Its Available-for Sale Securities (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Sep. 30, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
|
Debt Securities, Available-for-Sale, Allowance for Credit Loss [Roll Forward] | |||
Allowance for credit losses at beginning of period | $ (6,992) | $ 0 | $ 0 |
Additions on securities for which credit losses were not previously recorded | 0 | (6,992) | 0 |
(Increase) decrease on securities with previously recorded credit losses | (2,682) | 0 | 0 |
Allowance for credit losses at ending of period | $ (9,674) | $ (6,992) | $ 0 |
Mortgage Backed Securities - Schedule of Available-for-sale an Unrealized Loss Position (Details) - Commercial Mortgage Backed Securities - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Estimated Fair Value | ||
Securities with a loss less than 12 months | $ 175,428 | $ 150,230 |
Securities with a loss greater than 12 months | 97,174 | 756 |
Unrealized Losses | ||
Securities with a loss less than 12 months | (8,312) | (11,889) |
Securities with a loss greater than 12 months | $ (8,183) | $ (61) |
Mortgage Backed Securities - Narrative (Details) $ in Thousands |
Sep. 30, 2023
USD ($)
security
|
Dec. 31, 2022
security
|
---|---|---|
Debt Securities, Available-for-Sale [Line Items] | ||
Debt securities, available-for-sale, nonaccrual, number of commercial mortgage-backed securities | 1 | |
Debt securities, available-for-sale, nonaccrual | $ | $ 14,126 | |
Commercial Mortgage Backed Securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Debt securities available for sale unrealized loss positions number of positions | 10 | 15 |
Mortgage Backed Securities - Summary of Investment Held-to-maturity CMBS (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|
Schedule of Held-to-Maturity Securities [Line Items] | ||||
Credit Loss Allowance | $ (71) | $ (388) | $ (656) | $ 0 |
Net Carrying Amount | 74,543 | 68,559 | ||
Commercial Mortgage Backed Securities | ||||
Schedule of Held-to-Maturity Securities [Line Items] | ||||
Amortized Cost Basis | 74,614 | 68,559 | ||
Credit Loss Allowance | (71) | 0 | ||
Net Carrying Amount | 74,543 | 68,559 | ||
Gross Unrecognized Holding Gains | 0 | 0 | ||
Gross Unrecognized Holding Losses | (7,340) | 0 | ||
Fair Value | $ 67,203 | $ 68,559 |
Mortgage Backed Securities - Summary of Debt Securities, Held-to-Maturity, Allowance for Credit Loss (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Sep. 30, 2023 |
Mar. 31, 2023 |
Jun. 30, 2023 |
|
Debt Securities, Held-to-Maturity, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
CECL reserve, beginning balance | $ 388 | $ 0 | $ 0 |
Increase (Decrease) in CECL reserve | (317) | (283) | (268) |
CECL reserve, ending balance | $ 71 | 656 | 388 |
Cumulative Effect, Period of Adoption, Adjustment | |||
Debt Securities, Held-to-Maturity, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
CECL reserve, beginning balance | $ 939 | $ 939 |
Mortgage Backed Securities - Summary of Maturities of Investment Held-to-maturity CMBS (Details) - Commercial Mortgage Backed Securities - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Schedule of Held-to-Maturity Securities [Line Items] | ||
Total | $ 74,614 | $ 68,559 |
Less than 1 year | 0 | 0 |
1-3 years | 44,492 | 38,435 |
3-5 years | 30,122 | 30,124 |
More than 5 years | $ 0 | $ 0 |
Real Estate - Schedule of Real Estate Properties (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Real Estate [Line Items] | ||
Real estate, gross | $ 194,307 | $ 194,179 |
Accumulated depreciation and amortization | (9,131) | (3,630) |
Real estate, net | 185,176 | 190,549 |
In-place lease intangibles | ||
Real Estate [Line Items] | ||
Real estate, gross | 33,530 | 33,402 |
Building and building improvements | ||
Real Estate [Line Items] | ||
Real estate, gross | 120,527 | 120,527 |
Land and land improvements | ||
Real Estate [Line Items] | ||
Real estate, gross | 39,186 | 39,186 |
Furniture, fixtures and equipment | ||
Real Estate [Line Items] | ||
Real estate, gross | $ 1,064 | $ 1,064 |
Real Estate - Schedule of Finite Lived Intangible Assets Future Amortization Expense (Details) $ in Thousands |
Sep. 30, 2023
USD ($)
|
---|---|
Real Estate [Abstract] | |
2023 (remaining) | $ 912 |
2024 | 3,814 |
2025 | 3,814 |
2026 | 3,806 |
2027 | 3,803 |
Thereafter | 12,134 |
Total | $ 28,283 |
Real Estate - Schedule of Rental Operations (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Real Estate [Abstract] | ||||
Rental income | $ 5,297 | $ 3,569 | $ 14,985 | $ 3,569 |
Less: depreciation and amortization | (1,835) | (1,839) | (5,501) | (1,839) |
Less: cost of rental operations | (3,696) | (2,798) | (11,415) | (2,798) |
Rental operations, net | (234) | $ (1,068) | (1,931) | $ (1,068) |
Interest expense related to mortgage note payable | $ 2,365 | $ 6,718 |
Financing Arrangements - Summary of Information of Outstanding Financing Arrangement (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Dec. 31, 2022 |
|||
Debt Instrument [Line Items] | ||||
Amount Outstanding | $ 5,560,665 | $ 5,579,737 | ||
Amount Available | 2,493,338 | 2,284,216 | ||
Carrying Amount of Collateral | [1] | 8,784,408 | 8,337,816 | |
Carrying Amount of Collateral | ||||
Debt Instrument [Line Items] | ||||
Carrying Amount of Collateral | 7,332,442 | 7,138,397 | ||
Fair Value of Collateral | ||||
Debt Instrument [Line Items] | ||||
Fair Value of Collateral | $ 7,294,863 | $ 7,163,689 | ||
Minimum | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Spread | 0.00% | 0.00% | ||
Minimum | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Spread | 0.00% | |||
Minimum | Benchmark Rate | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Spread | 0.00% | |||
WF-1 Facility | Minimum | SOFR | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Spread | 0.00% | |||
GS-1 Facility | Minimum | SOFR | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Spread | 0.00% | 0.00% | ||
BB-1 Facility | Minimum | SOFR | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Spread | 0.00% | |||
MM-1 Facility | SOFR | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Spread | 0.11% | 0.11% | ||
Natixis Loan | Weighted Average | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Spread | 2.15% | |||
Collateralized Loan Obligations | ||||
Debt Instrument [Line Items] | ||||
Amount Outstanding | $ 4,343,790 | $ 4,383,819 | ||
Amount Available | 0 | 0 | ||
Collateralized Loan Obligations | Carrying Amount of Collateral | ||||
Debt Instrument [Line Items] | ||||
Carrying Amount of Collateral | 5,498,839 | 5,546,779 | ||
Collateralized Loan Obligations | Fair Value of Collateral | ||||
Debt Instrument [Line Items] | ||||
Fair Value of Collateral | 5,444,092 | 5,547,859 | ||
Collateralized Loan Obligations | 2019-FL1 Notes | ||||
Debt Instrument [Line Items] | ||||
Amount Outstanding | 194,223 | 196,785 | ||
Amount Available | 0 | 0 | ||
Collateralized Loan Obligations | 2019-FL1 Notes | Carrying Amount of Collateral | ||||
Debt Instrument [Line Items] | ||||
Carrying Amount of Collateral | 292,227 | 294,751 | ||
Collateralized Loan Obligations | 2019-FL1 Notes | Fair Value of Collateral | ||||
Debt Instrument [Line Items] | ||||
Fair Value of Collateral | $ 290,996 | $ 295,040 | ||
Collateralized Loan Obligations | 2019-FL1 Notes | Weighted Average | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Spread | 1.66% | 1.55% | ||
Collateralized Loan Obligations | 2021-FL2 Notes | ||||
Debt Instrument [Line Items] | ||||
Amount Outstanding | $ 640,056 | $ 646,935 | ||
Amount Available | 0 | 0 | ||
Collateralized Loan Obligations | 2021-FL2 Notes | Carrying Amount of Collateral | ||||
Debt Instrument [Line Items] | ||||
Carrying Amount of Collateral | 768,945 | 782,767 | ||
Collateralized Loan Obligations | 2021-FL2 Notes | Fair Value of Collateral | ||||
Debt Instrument [Line Items] | ||||
Fair Value of Collateral | $ 761,177 | $ 783,381 | ||
Collateralized Loan Obligations | 2021-FL2 Notes | Weighted Average | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Spread | 1.64% | 1.53% | ||
Collateralized Loan Obligations | 2021-FL3 Notes | ||||
Debt Instrument [Line Items] | ||||
Amount Outstanding | $ 928,483 | $ 928,483 | ||
Amount Available | 0 | 0 | ||
Collateralized Loan Obligations | 2021-FL3 Notes | Carrying Amount of Collateral | ||||
Debt Instrument [Line Items] | ||||
Carrying Amount of Collateral | 1,102,550 | 1,133,769 | ||
Collateralized Loan Obligations | 2021-FL3 Notes | Fair Value of Collateral | ||||
Debt Instrument [Line Items] | ||||
Fair Value of Collateral | $ 1,094,349 | $ 1,135,195 | ||
Collateralized Loan Obligations | 2021-FL3 Notes | Weighted Average | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Spread | 1.61% | 1.51% | ||
Collateralized Loan Obligations | 2022-FL4 Notes | ||||
Debt Instrument [Line Items] | ||||
Amount Outstanding | $ 837,662 | $ 837,662 | ||
Amount Available | 0 | 0 | ||
Collateralized Loan Obligations | 2022-FL4 Notes | Carrying Amount of Collateral | ||||
Debt Instrument [Line Items] | ||||
Carrying Amount of Collateral | 1,080,659 | 1,081,159 | ||
Collateralized Loan Obligations | 2022-FL4 Notes | Fair Value of Collateral | ||||
Debt Instrument [Line Items] | ||||
Fair Value of Collateral | $ 1,068,520 | $ 1,080,953 | ||
Collateralized Loan Obligations | 2022-FL4 Notes | Weighted Average | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Spread | 2.21% | 2.21% | ||
Collateralized Loan Obligations | 2022-FL5 Notes | ||||
Debt Instrument [Line Items] | ||||
Amount Outstanding | $ 560,224 | $ 570,112 | ||
Amount Available | 0 | 0 | ||
Collateralized Loan Obligations | 2022-FL5 Notes | Carrying Amount of Collateral | ||||
Debt Instrument [Line Items] | ||||
Carrying Amount of Collateral | 689,919 | 689,885 | ||
Collateralized Loan Obligations | 2022-FL5 Notes | Fair Value of Collateral | ||||
Debt Instrument [Line Items] | ||||
Fair Value of Collateral | $ 680,370 | $ 689,246 | ||
Collateralized Loan Obligations | 2022-FL5 Notes | Weighted Average | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Spread | 2.78% | 3.05% | ||
Collateralized Loan Obligations | 2022-FL6 Notes | ||||
Debt Instrument [Line Items] | ||||
Amount Outstanding | $ 552,100 | $ 566,250 | ||
Amount Available | 0 | 0 | ||
Collateralized Loan Obligations | 2022-FL6 Notes | Carrying Amount of Collateral | ||||
Debt Instrument [Line Items] | ||||
Carrying Amount of Collateral | 749,880 | 749,837 | ||
Collateralized Loan Obligations | 2022-FL6 Notes | Fair Value of Collateral | ||||
Debt Instrument [Line Items] | ||||
Fair Value of Collateral | $ 742,077 | $ 749,502 | ||
Collateralized Loan Obligations | 2022-FL6 Notes | Weighted Average | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Spread | 2.84% | 2.96% | ||
Collateralized Loan Obligations | 2022-FL7 Notes | ||||
Debt Instrument [Line Items] | ||||
Amount Outstanding | $ 631,042 | $ 637,592 | ||
Amount Available | 0 | 0 | ||
Collateralized Loan Obligations | 2022-FL7 Notes | Carrying Amount of Collateral | ||||
Debt Instrument [Line Items] | ||||
Carrying Amount of Collateral | 814,659 | 814,611 | ||
Collateralized Loan Obligations | 2022-FL7 Notes | Fair Value of Collateral | ||||
Debt Instrument [Line Items] | ||||
Fair Value of Collateral | $ 806,603 | $ 814,542 | ||
Collateralized Loan Obligations | 2022-FL7 Notes | Weighted Average | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Spread | 3.18% | 3.35% | ||
Line of Credit | Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Amount Outstanding | $ 242,175 | $ 760,236 | ||
Amount Available | 2,033,338 | 1,283,198 | ||
Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Amount Outstanding | 850,000 | 310,982 | ||
Amount Available | 460,000 | 999,018 | ||
Line of Credit | Carrying Amount of Collateral | Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Carrying Amount of Collateral | 528,312 | 993,224 | ||
Line of Credit | Carrying Amount of Collateral | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Carrying Amount of Collateral | 1,148,927 | 439,431 | ||
Line of Credit | Fair Value of Collateral | Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Fair Value of Collateral | 525,706 | 984,740 | ||
Line of Credit | Fair Value of Collateral | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Fair Value of Collateral | 1,140,393 | 439,051 | ||
Line of Credit | WF-1 Facility | Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Amount Outstanding | 48,870 | 375,381 | ||
Amount Available | 551,130 | 224,619 | ||
Line of Credit | WF-1 Facility | Carrying Amount of Collateral | Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Carrying Amount of Collateral | 62,596 | 481,146 | ||
Line of Credit | WF-1 Facility | Fair Value of Collateral | Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Fair Value of Collateral | $ 61,921 | $ 480,371 | ||
Line of Credit | WF-1 Facility | Weighted Average | Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Spread | 1.88% | 2.04% | ||
Line of Credit | GS-1 Facility | Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Amount Outstanding | $ 18,781 | $ 34,519 | ||
Amount Available | 431,219 | 315,481 | ||
Line of Credit | GS-1 Facility | Carrying Amount of Collateral | Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Carrying Amount of Collateral | 84,448 | 48,276 | ||
Line of Credit | GS-1 Facility | Fair Value of Collateral | Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Fair Value of Collateral | $ 83,981 | $ 47,846 | ||
Line of Credit | GS-1 Facility | Weighted Average | Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Spread | 2.83% | 2.40% | ||
Line of Credit | RBC Facility | Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Amount Outstanding | $ 29,646 | $ 55,934 | ||
Amount Available | 0 | 0 | ||
Line of Credit | RBC Facility | Carrying Amount of Collateral | Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Carrying Amount of Collateral | 0 | 85,707 | ||
Line of Credit | RBC Facility | Fair Value of Collateral | Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Fair Value of Collateral | $ 0 | $ 79,274 | ||
Line of Credit | RBC Facility | Weighted Average | Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Spread | 1.30% | 1.39% | ||
Line of Credit | BB-1 Facility | Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Amount Outstanding | $ 11,474 | $ 186,139 | ||
Amount Available | 688,526 | 513,861 | ||
Line of Credit | BB-1 Facility | Carrying Amount of Collateral | Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Carrying Amount of Collateral | 14,801 | 236,783 | ||
Line of Credit | BB-1 Facility | Fair Value of Collateral | Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Fair Value of Collateral | $ 14,690 | $ 236,462 | ||
Line of Credit | BB-1 Facility | Weighted Average | Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Spread | 1.96% | 2.14% | ||
Line of Credit | MS-1 Facility | Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Amount Outstanding | $ 37,537 | $ 108,263 | ||
Amount Available | 112,463 | 41,737 | ||
Line of Credit | MS-1 Facility | Carrying Amount of Collateral | Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Carrying Amount of Collateral | 89,990 | 141,312 | ||
Line of Credit | MS-1 Facility | Fair Value of Collateral | Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Fair Value of Collateral | $ 88,855 | $ 140,787 | ||
Line of Credit | MS-1 Facility | Weighted Average | Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Spread | 2.65% | 2.86% | ||
Line of Credit | NTX-1 Facility | Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Amount Outstanding | $ 0 | $ 0 | ||
Amount Available | 250,000 | 187,500 | ||
Line of Credit | NTX-1 Facility | Carrying Amount of Collateral | Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Carrying Amount of Collateral | 0 | 0 | ||
Line of Credit | NTX-1 Facility | Fair Value of Collateral | Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Fair Value of Collateral | 0 | 0 | ||
Line of Credit | BMO-1 Facility | Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Amount Outstanding | 80,000 | |||
Amount Available | 0 | |||
Line of Credit | BMO-1 Facility | Carrying Amount of Collateral | Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Carrying Amount of Collateral | 276,477 | |||
Line of Credit | BMO-1 Facility | Fair Value of Collateral | Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Fair Value of Collateral | $ 276,259 | |||
Line of Credit | BMO-1 Facility | Weighted Average | Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Spread | 2.00% | |||
Line of Credit | Lucid Facility | Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Amount Outstanding | $ 15,867 | |||
Amount Available | 0 | |||
Line of Credit | Lucid Facility | Carrying Amount of Collateral | Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Carrying Amount of Collateral | 0 | |||
Line of Credit | Lucid Facility | Fair Value of Collateral | Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Fair Value of Collateral | $ 0 | |||
Line of Credit | Lucid Facility | Weighted Average | Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Spread | 1.15% | |||
Line of Credit | MM-1 Facility | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Amount Outstanding | $ 850,000 | 310,982 | ||
Amount Available | 150,000 | 689,018 | ||
Line of Credit | MM-1 Facility | Carrying Amount of Collateral | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Carrying Amount of Collateral | 1,148,927 | 439,431 | ||
Line of Credit | MM-1 Facility | Fair Value of Collateral | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Fair Value of Collateral | $ 1,140,393 | $ 439,051 | ||
Line of Credit | MM-1 Facility | Weighted Average | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Spread | 2.14% | 2.14% | ||
Line of Credit | Barclays Facility | SOFR | ||||
Debt Instrument [Line Items] | ||||
Debt instrument credit spread adjustment | 0.10% | |||
Line of Credit | Barclays Facility | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Amount Outstanding | $ 0 | $ 0 | ||
Amount Available | 310,000 | $ 310,000 | ||
Debt instrument credit spread adjustment | 0.10% | |||
Line of Credit | Barclays Facility | Carrying Amount of Collateral | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Carrying Amount of Collateral | 0 | $ 0 | ||
Line of Credit | Barclays Facility | Fair Value of Collateral | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Fair Value of Collateral | $ 0 | $ 0 | ||
Line of Credit | Barclays Facility | Minimum | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Spread | 1.25% | |||
Line of Credit | Barclays Facility | Minimum | Revolving Credit Facility | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Spread | 1.25% | |||
Line of Credit | Barclays Facility | Maximum | SOFR | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Spread | 2.25% | |||
Line of Credit | Barclays Facility | Maximum | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Spread | 2.25% | |||
Mortgage Loan | ||||
Debt Instrument [Line Items] | ||||
Amount Outstanding | $ 124,700 | |||
Mortgage Loan | Natixis Loan | ||||
Debt Instrument [Line Items] | ||||
Amount Outstanding | 124,700 | $ 124,700 | ||
Amount Available | 0 | 2,000 | ||
Mortgage Loan | Natixis Loan | Carrying Amount of Collateral | ||||
Debt Instrument [Line Items] | ||||
Carrying Amount of Collateral | 156,364 | 158,963 | ||
Mortgage Loan | Natixis Loan | Fair Value of Collateral | ||||
Debt Instrument [Line Items] | ||||
Fair Value of Collateral | $ 184,672 | $ 192,039 | ||
Mortgage Loan | Natixis Loan | Weighted Average | ||||
Debt Instrument [Line Items] | ||||
Weighted Average Spread | 2.15% | |||
|
Financing Arrangements - Additional Information (Details) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2023
USD ($)
facility
|
Dec. 31, 2022
USD ($)
|
|
Debt Disclosure [Abstract] | ||
Average borrowings | $ | $ 5,674,603 | $ 4,560,400 |
Weighted average spread | 7.12% | 3.83% |
Number of repurchase facilities | 8 | |
Number of revolving credit facilities | 2 |
Financing Arrangements - Summary of Repayment for Secured Financings Outstanding (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Debt Instrument [Line Items] | ||
2023 | $ 0 | |
2024 | 152,941 | |
2025 | 284,114 | |
2026 | 556,744 | |
Thereafter | 4,566,866 | |
Total | 5,560,665 | $ 5,579,737 |
Collateralized Loan Obligations | ||
Debt Instrument [Line Items] | ||
2023 | 0 | |
2024 | 12,597 | |
2025 | 103,096 | |
2026 | 556,744 | |
Thereafter | 3,671,353 | |
Total | 4,343,790 | 4,383,819 |
Line of Credit | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
2023 | 0 | |
2024 | 140,344 | |
2025 | 56,318 | |
2026 | 0 | |
Thereafter | 45,513 | |
Total | 242,175 | 760,236 |
Line of Credit | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
Thereafter | 850,000 | |
Total | 850,000 | $ 310,982 |
Mortgage Loan | ||
Debt Instrument [Line Items] | ||
2023 | 0 | |
2024 | 0 | |
2025 | 124,700 | |
2026 | 0 | |
Thereafter | 0 | |
Total | $ 124,700 |
Financing Arrangements - Summary of Number of Loans and the Principal Balance (Details) - Collateralized Loan Obligations $ in Thousands |
Sep. 30, 2023
USD ($)
loan
|
---|---|
Debt Instrument [Line Items] | |
Total Count | loan | 165 |
Principal Balance | $ | $ 5,500,233 |
2019-FL1 | |
Debt Instrument [Line Items] | |
Total Count | loan | 14 |
Principal Balance | $ | $ 292,791 |
2021-FL2 | |
Debt Instrument [Line Items] | |
Total Count | loan | 26 |
Principal Balance | $ | $ 769,064 |
2021-FL3 | |
Debt Instrument [Line Items] | |
Total Count | loan | 30 |
Principal Balance | $ | $ 1,102,723 |
2022-FL4 | |
Debt Instrument [Line Items] | |
Total Count | loan | 25 |
Principal Balance | $ | $ 1,080,841 |
2022-FL5 | |
Debt Instrument [Line Items] | |
Total Count | loan | 25 |
Principal Balance | $ | $ 690,000 |
2022-FL6 | |
Debt Instrument [Line Items] | |
Total Count | loan | 24 |
Principal Balance | $ | $ 750,000 |
2022-FL7 | |
Debt Instrument [Line Items] | |
Total Count | loan | 21 |
Principal Balance | $ | $ 814,814 |
Financing Arrangements - Summary of Net Book Value of Debt Instrument (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Sep. 30, 2022 |
---|---|---|
Collateralized Loan Obligations | ||
Debt Instrument [Line Items] | ||
Face value | $ 4,343,790 | $ 3,772,476 |
Unamortized deferred financing costs | (27,733) | (30,649) |
Unamortized discount | (9,785) | (7,887) |
Net book value | 4,306,272 | 3,733,940 |
Line of Credit | Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Face value | 242,175 | 883,580 |
Unamortized deferred financing costs | (2,718) | (2,976) |
Net book value | 239,457 | 880,604 |
Line of Credit | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Face value | 850,000 | 704,105 |
Unamortized deferred financing costs | (10,493) | (8,383) |
Net book value | 839,507 | 695,722 |
Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Face value | 124,700 | 124,700 |
Unamortized deferred financing costs | (1,220) | (2,132) |
Net book value | $ 123,480 | $ 122,568 |
Related Party Transactions - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands |
1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 80 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 01, 2022 |
Dec. 31, 2016 |
Sep. 30, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Jun. 30, 2023 |
|
Related Party Transaction [Line Items] | ||||||||||||
Administrative service fee percentage | 1.00% | |||||||||||
Organization and offering costs | $ 23,902 | |||||||||||
Offering expenses | $ 116,585 | $ 107,692 | $ 116,585 | $ 116,585 | ||||||||
Recoupment paid or payable to sponsor | 148 | |||||||||||
Purchases of mortgage-backed securities, at fair value | $ 86,636 | $ 150,598 | ||||||||||
Related Party | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Performance fee percentage | 10.00% | |||||||||||
Hurdle rate on average adjusted capital | 1.625% | |||||||||||
Annualized hurdle rate | 6.50% | |||||||||||
Quarterly core earnings rate | 1.806% | |||||||||||
Annualized core earnings rate | 7.222% | |||||||||||
Percentage of origination fees of loan amount | 1.00% | |||||||||||
Recoupment paid or payable to sponsor | 0 | $ 61 | $ 87 | 605 | 753 | |||||||
Recoupment amount | $ 6,592 | |||||||||||
Recoupment payable | $ 61 | $ 61 | $ 61 | |||||||||
Related Party | Maximum | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Public offering | 15.00% | 15.00% | 15.00% | |||||||||
Related Party | Common Stock Class F | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Investments owned | $ 402 | $ 402 | $ 402 | |||||||||
Related Party | FS Real Estate Advisor | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Base management fee percentage | 1.25% | |||||||||||
Administrative service fee percentage | 1.00% | |||||||||||
Capital Markets Fees | $ 0 | $ 0 | $ 0 | 2,000 | ||||||||
Public offering | 0.75% | 0.75% | 0.75% | |||||||||
Offering costs previously funded | $ 5,159 | |||||||||||
Offering expenses | $ 4,180 | 4,180 | $ 4,180 | |||||||||
Investments owned | $ 18,583 | $ 18,583 | $ 18,583 | |||||||||
Related Party | FS Real Estate Advisor | Expense Limitation | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Percentage of minimum operating expenses to be waived or paid | 1.50% | |||||||||||
Related Party | FS Real Estate Advisor | Maximum | Expense Limitation | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Period for which reimbursement payable | 3 years | |||||||||||
Related Party | FS Real Estate Advisor | Class T, Class S, Class D and Class M Share | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Stockholder servicing fees percentage | 10.00% | 10.00% | 10.00% | |||||||||
Related Party | FS Real Estate Advisor | Common Stock Class T | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Stockholder servicing fees percentage | 8.75% | 8.75% | 8.75% | |||||||||
Dealer manager upfront selling commissions fees percentage | 3.00% | |||||||||||
Upfront dealer manager fees percentage | 0.50% | |||||||||||
Selling commission and fee maximum percent | 3.50% | |||||||||||
Stockholders servicing fee percentage on aggregate NAV of outstanding shares | 0.85% | |||||||||||
Advisor stockholders servicing fee percentage on aggregate NAV of outstanding shares | 0.65% | |||||||||||
Dealer stockholders servicing fee percentage on aggregate NAV of outstanding shares | 0.20% | |||||||||||
Related Party | FS Real Estate Advisor | Common Stock Class S | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Stockholder servicing fees percentage | 8.75% | 8.75% | 8.75% | |||||||||
Dealer manager upfront selling commissions fees percentage | 3.50% | |||||||||||
Stockholders servicing fee percentage on aggregate NAV of outstanding shares | 0.85% | |||||||||||
Related Party | FS Real Estate Advisor | Common Stock Class D | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Stockholder servicing fees percentage | 1.25% | 1.25% | 1.25% | |||||||||
Stockholders servicing fee percentage on aggregate NAV of outstanding shares | 0.30% | |||||||||||
Related Party | FS Real Estate Advisor | Common Stock Class M | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Stockholder servicing fees percentage | 7.25% | 7.25% | 7.25% | |||||||||
Stockholders servicing fee percentage on aggregate NAV of outstanding shares | 0.30% | |||||||||||
Related Party | FS Real Estate Advisor | Class T, Class T-C and Class M Shares | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Stockholder servicing fees percentage | 10.00% | 10.00% | 10.00% | |||||||||
Related Party | FS Real Estate Advisor and Rialto | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Payment of loan origination fees | $ 7,418 | $ 33,237 | ||||||||||
Related Party | FS Real Estate Advisor and Rialto | Class I Share Performance-contingent Rights Agreement | Performance-Contingent Rights (PCRs) | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Annualized distribution yield | 6.00% | |||||||||||
Agreement period | 6 months | |||||||||||
Period of written notice to the company by the adviser entities | 10 days | |||||||||||
Related Party | FS Real Estate Advisor and Rialto | Class I Restricted Stock Units Sub Advisory Agreement | Restricted Stock Units (RSUs) | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Agreement period | 6 months | |||||||||||
Period of written notice to the company by the adviser entities | 10 days | |||||||||||
Award vesting rights, percentage | 100.00% | |||||||||||
Award non vesting rights, percentage | 100.00% | |||||||||||
Related Party | FS Investment Solutions | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Offering expenses | $ 115,832 | $ 107,692 | $ 115,832 | $ 115,832 | ||||||||
Related Party | Rialto | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Purchase of floating-rate whole mortgage loan | $ 6,592 | |||||||||||
Related Party | FS Investments and Rialto | Private Placement | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Aggregate proceeds from private placement | $ 200 | |||||||||||
Issuance of common stock (in shares) | 8,000 | |||||||||||
Common stock, price per share (in dollars per share) | $ 25.00 | |||||||||||
Related Party | Affiliate Of Rialto | Class E Notes Mortgage Backed Securities | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Purchases of mortgage-backed securities, at fair value | $ 15,000 | $ 36,000 |
Related Party Transactions - Summary of Fees and Expenses Accrued under Advisory Agreement (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Dec. 01, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Related Party Transaction [Line Items] | |||||
Base Management Fee | $ 9,092 | $ 6,629 | $ 25,514 | $ 15,825 | |
Performance contingent rights issued | 0 | 11,409 | |||
Administrative service fee percentage | 1.00% | ||||
Related Party | FS Real Estate Advisor | |||||
Related Party Transaction [Line Items] | |||||
Base Management Fee | 9,092 | 6,629 | 25,514 | 15,825 | |
Performance fee | 6,354 | 3,904 | 17,742 | 4,056 | |
Administrative Services Expenses | 0 | 3,434 | 0 | 8,658 | |
Administrative Services Fee | 7,366 | 0 | 20,682 | 0 | |
Capital Markets Fees | 0 | 0 | 0 | 2,000 | |
Payment for management fees | 23,949 | 2,007 | |||
Performance contingent rights issued | 11,409 | ||||
Management fee payable | 9,088 | 0 | 9,088 | 0 | |
Payment for incentive fees | 16,160 | 557 | |||
Incentive fee payable | 6,354 | 6,354 | |||
Allocation of administrative expense | 7,978 | ||||
Administrative service fee percentage | 1.00% | ||||
Related Party | Rialto Capital Management | |||||
Related Party Transaction [Line Items] | |||||
Valuation Services Fees | $ 108 | $ 106 | 329 | 299 | |
Payment of valuation service fees | $ 214 | $ 193 |
Related Party Transactions - Summary of Reimbursed by FS Real Estate (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Sep. 30, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Sep. 30, 2023 |
Sep. 30, 2023 |
|
Related Party Transaction [Line Items] | ||||||
Recoupment paid or payable to sponsor | $ 148 | |||||
Related Party | ||||||
Related Party Transaction [Line Items] | ||||||
Amount of Expense Reimbursement | $ 0 | $ 61 | $ 87 | $ 605 | $ 753 | |
Recoupable Amount | 753 | 0 | 0 | 0 | 753 | |
Recoupment paid or payable to sponsor | 0 | 61 | 87 | 605 | 753 | |
Expired Amount | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Stockholders' Equity - Summary of Common Stock Transactions (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | $ 2,630,503 | $ 1,821,230 | $ 2,317,157 | $ 973,340 |
Issuance of common stock | 171,962 | 381,818 | 685,403 | 1,311,962 |
Reinvestment of distributions | 25,196 | 15,943 | 68,670 | 37,838 |
Redemptions of common stock | (71,309) | (43,173) | (240,434) | (99,944) |
Ending balance | $ 2,765,134 | $ 2,163,769 | $ 2,765,134 | $ 2,163,769 |
Common Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period, shares | 97,672,807 | 40,926,209 | ||
Beginning balance | $ 2,315,378 | $ 971,310 | ||
Issuance of common stock (in shares) | 28,287,149 | 52,699,603 | ||
Issuance of common stock | $ 685,403 | $ 1,311,962 | ||
Reinvestment of distributions (in shares) | 2,777,240 | 1,498,182 | ||
Reinvestment of distributions | $ 68,670 | $ 37,838 | ||
Redemptions of common stock (in shares) | (9,723,258) | (4,014,502) | ||
Redemptions of common stock | $ (240,434) | $ (99,944) | ||
Transfers in or out (in shares) | (19,130) | (4,184) | ||
Transfers in or out | $ 0 | $ 0 | ||
Accrued stockholder servicing fees | $ (18,214) | $ (61,558) | ||
Balance at end of period, shares | 119,033,068 | 91,113,676 | 119,033,068 | 91,113,676 |
Ending balance | $ 2,810,803 | $ 2,159,608 | $ 2,810,803 | $ 2,159,608 |
Common Stock | Class F | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period, shares | 857,710 | 902,878 | ||
Beginning balance | $ 21,008 | $ 22,138 | ||
Issuance of common stock (in shares) | 0 | 0 | ||
Issuance of common stock | $ 0 | $ 0 | ||
Reinvestment of distributions (in shares) | 22,334 | 22,136 | ||
Reinvestment of distributions | $ 559 | $ 554 | ||
Redemptions of common stock (in shares) | (114,365) | (74,770) | ||
Redemptions of common stock | $ (2,862) | $ (1,870) | ||
Transfers in or out (in shares) | 10,259 | 0 | ||
Transfers in or out | $ (257) | $ 0 | ||
Accrued stockholder servicing fees | $ 0 | $ 0 | ||
Balance at end of period, shares | 755,420 | 850,244 | 755,420 | 850,244 |
Ending balance | $ 18,448 | $ 20,822 | $ 18,448 | $ 20,822 |
Common Stock | Class Y | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period, shares | 906,648 | 906,648 | ||
Beginning balance | $ 22,371 | $ 22,371 | ||
Issuance of common stock (in shares) | 0 | 0 | ||
Issuance of common stock | $ 0 | $ 0 | ||
Reinvestment of distributions (in shares) | 0 | 0 | ||
Reinvestment of distributions | $ 0 | $ 0 | ||
Redemptions of common stock (in shares) | 0 | 0 | ||
Redemptions of common stock | $ 0 | $ 0 | ||
Transfers in or out (in shares) | 0 | 0 | ||
Transfers in or out | $ 0 | $ 0 | ||
Accrued stockholder servicing fees | $ 0 | $ 0 | ||
Balance at end of period, shares | 906,648 | 906,648 | 906,648 | 906,648 |
Ending balance | $ 22,371 | $ 22,371 | $ 22,371 | $ 22,371 |
Common Stock | Class T | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period, shares | 1,600,878 | 1,407,377 | ||
Beginning balance | $ 38,473 | $ 33,862 | ||
Issuance of common stock (in shares) | 72,725 | 188,212 | ||
Issuance of common stock | $ 1,812 | $ 4,699 | ||
Reinvestment of distributions (in shares) | 33,745 | 31,615 | ||
Reinvestment of distributions | $ 838 | $ 793 | ||
Redemptions of common stock (in shares) | (109,653) | (33,438) | ||
Redemptions of common stock | $ (2,723) | $ (835) | ||
Transfers in or out (in shares) | 219,302 | 1,729 | ||
Transfers in or out | $ (5,447) | $ (43) | ||
Accrued stockholder servicing fees | $ (49) | $ (192) | ||
Balance at end of period, shares | 1,378,393 | 1,592,037 | 1,378,393 | 1,592,037 |
Ending balance | $ 32,904 | $ 38,284 | $ 32,904 | $ 38,284 |
Common Stock | Class S | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period, shares | 54,908,336 | 22,823,721 | ||
Beginning balance | $ 1,274,345 | $ 531,150 | ||
Issuance of common stock (in shares) | 12,869,916 | 30,189,475 | ||
Issuance of common stock | $ 322,941 | $ 760,752 | ||
Reinvestment of distributions (in shares) | 1,484,600 | 877,669 | ||
Reinvestment of distributions | $ 37,215 | $ 22,106 | ||
Redemptions of common stock (in shares) | (5,080,070) | (2,268,159) | ||
Redemptions of common stock | $ (127,360) | $ (57,119) | ||
Transfers in or out (in shares) | 55,465 | 0 | ||
Transfers in or out | $ (1,390) | $ 0 | ||
Accrued stockholder servicing fees | $ (17,913) | $ (58,903) | ||
Balance at end of period, shares | 64,127,317 | 51,622,706 | 64,127,317 | 51,622,706 |
Ending balance | $ 1,487,838 | $ 1,197,986 | $ 1,487,838 | $ 1,197,986 |
Common Stock | Class D | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period, shares | 742,999 | 642,162 | ||
Beginning balance | $ 18,417 | $ 15,945 | ||
Issuance of common stock (in shares) | 131,578 | 113,587 | ||
Issuance of common stock | $ 3,275 | $ 2,840 | ||
Reinvestment of distributions (in shares) | 12,790 | 11,074 | ||
Reinvestment of distributions | $ 318 | $ 277 | ||
Redemptions of common stock (in shares) | (37,372) | (21,931) | ||
Redemptions of common stock | $ (929) | $ (549) | ||
Transfers in or out (in shares) | 174,445 | 18,729 | ||
Transfers in or out | $ (4,338) | $ (468) | ||
Accrued stockholder servicing fees | $ (16) | $ (32) | ||
Balance at end of period, shares | 675,550 | 726,163 | 675,550 | 726,163 |
Ending balance | $ 16,727 | $ 18,013 | $ 16,727 | $ 18,013 |
Common Stock | Class M | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period, shares | 4,645,072 | 2,876,736 | ||
Beginning balance | $ 108,522 | $ 66,836 | ||
Issuance of common stock (in shares) | 734,839 | 1,605,166 | ||
Issuance of common stock | $ 18,333 | $ 40,238 | ||
Reinvestment of distributions (in shares) | 83,733 | 52,503 | ||
Reinvestment of distributions | $ 2,088 | $ 1,820 | ||
Redemptions of common stock (in shares) | (401,787) | (153,213) | ||
Redemptions of common stock | $ (10,015) | $ (3,840) | ||
Transfers in or out (in shares) | 269,434 | 142,726 | ||
Transfers in or out | $ (6,722) | $ (3,580) | ||
Accrued stockholder servicing fees | $ (236) | $ (2,431) | ||
Balance at end of period, shares | 4,792,423 | 4,238,466 | 4,792,423 | 4,238,466 |
Ending balance | $ 111,970 | $ 99,043 | $ 111,970 | $ 99,043 |
Common Stock | Class I | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period, shares | 34,011,164 | 11,366,687 | ||
Beginning balance | $ 832,242 | $ 279,008 | ||
Issuance of common stock (in shares) | 14,478,091 | 20,603,163 | ||
Issuance of common stock | $ 339,042 | $ 503,433 | ||
Reinvestment of distributions (in shares) | 1,140,038 | 503,185 | ||
Reinvestment of distributions | $ 27,652 | $ 12,288 | ||
Redemptions of common stock (in shares) | (3,980,011) | (1,462,991) | ||
Redemptions of common stock | $ (96,545) | $ (35,731) | ||
Transfers in or out (in shares) | (748,035) | (167,368) | ||
Transfers in or out | $ 18,154 | $ 4,091 | ||
Accrued stockholder servicing fees | $ 0 | $ 0 | ||
Balance at end of period, shares | 46,397,317 | 31,177,412 | 46,397,317 | 31,177,412 |
Ending balance | $ 1,120,545 | $ 763,089 | $ 1,120,545 | $ 763,089 |
Stockholders' Equity - Additional Information (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Class of Stock [Line Items] | ||
Percentage of share repurchases of aggregate net asset value | 20.00% | |
Shares repurchased under repurchase plan (in shares) | 9,723,258 | 4,014,502 |
Shares repurchased under repurchase plan, value | $ 240,434 | $ 99,944 |
Series A Preferred Stock | ||
Class of Stock [Line Items] | ||
Dividend rate | 12.00% | |
Minimum | ||
Class of Stock [Line Items] | ||
Repurchase of shares to NAV of all classes of shares, percentage | 2.00% | |
Maximum | ||
Class of Stock [Line Items] | ||
Repurchase of shares to NAV of all classes of shares, percentage | 5.00% |
Stockholders' Equity - Summary of Cash Distributions Per Share that Paid on its Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 29, 2023 |
Aug. 30, 2023 |
Jul. 28, 2023 |
Jun. 29, 2023 |
May 30, 2023 |
Apr. 27, 2023 |
Mar. 30, 2023 |
Feb. 27, 2023 |
Jan. 30, 2023 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Distributions: | |||||||||||||
Paid or payable in cash | $ 25,820 | $ 16,473 | $ 72,406 | $ 40,805 | |||||||||
Reinvested in shares | 25,196 | 15,943 | 68,670 | 37,838 | |||||||||
Total distributions | 51,016 | 32,416 | 141,076 | 78,643 | |||||||||
Cash flows from operating activities | 51,016 | 32,416 | 141,076 | 78,643 | |||||||||
Offering proceeds | 0 | 0 | 0 | 0 | |||||||||
Total sources of distributions | 51,016 | 32,416 | 141,076 | 78,643 | |||||||||
Net cash provided by (used in) operating activities | $ 81,922 | $ 47,173 | $ 201,619 | $ 96,098 | |||||||||
Class F | |||||||||||||
Dividends Payable [Line Items] | |||||||||||||
Distributions paid per share of common stock (in dollars per share) | $ 0.1799 | $ 0.1799 | $ 0.1799 | $ 0.1799 | $ 0.1749 | $ 0.1749 | $ 0.1749 | $ 0.1696 | $ 0.1696 | $ 1.5835 | |||
Class Y | |||||||||||||
Dividends Payable [Line Items] | |||||||||||||
Distributions paid per share of common stock (in dollars per share) | 0.1799 | 0.1799 | 0.1799 | 0.1799 | 0.1749 | 0.1749 | 0.1749 | 0.1696 | 0.1696 | 1.5835 | |||
Class T | |||||||||||||
Dividends Payable [Line Items] | |||||||||||||
Distributions paid per share of common stock (in dollars per share) | 0.1362 | 0.1362 | 0.1362 | 0.1362 | 0.1312 | 0.1312 | 0.1312 | 0.1259 | 0.1259 | 1.1902 | |||
Class S | |||||||||||||
Dividends Payable [Line Items] | |||||||||||||
Distributions paid per share of common stock (in dollars per share) | 0.1362 | 0.1362 | 0.1362 | 0.1362 | 0.1312 | 0.1312 | 0.1312 | 0.1259 | 0.1259 | 1.1902 | |||
Class D | |||||||||||||
Dividends Payable [Line Items] | |||||||||||||
Distributions paid per share of common stock (in dollars per share) | 0.1477 | 0.1477 | 0.1477 | 0.1477 | 0.1427 | 0.1427 | 0.1427 | 0.1374 | 0.1374 | 1.2937 | |||
Class M | |||||||||||||
Dividends Payable [Line Items] | |||||||||||||
Distributions paid per share of common stock (in dollars per share) | 0.1477 | 0.1477 | 0.1477 | 0.1477 | 0.1427 | 0.1427 | 0.1427 | 0.1374 | 0.1374 | 1.2937 | |||
Class I | |||||||||||||
Dividends Payable [Line Items] | |||||||||||||
Distributions paid per share of common stock (in dollars per share) | $ 0.1539 | $ 0.1539 | $ 0.1539 | $ 0.1539 | $ 0.1489 | $ 0.1489 | $ 0.1489 | $ 0.1436 | $ 0.1436 | $ 1.3495 |
Stockholders' Equity - Schedule of Cash Distribution On Class of Common Stock (Details) |
1 Months Ended |
---|---|
Jul. 31, 2023
$ / shares
| |
Class F | |
Class of Stock [Line Items] | |
Distributions declared (in USD per share) | $ 0.1799 |
Class Y | |
Class of Stock [Line Items] | |
Distributions declared (in USD per share) | 0.1799 |
Class T | |
Class of Stock [Line Items] | |
Distributions declared (in USD per share) | 0.1362 |
Class S | |
Class of Stock [Line Items] | |
Distributions declared (in USD per share) | 0.1362 |
Class D | |
Class of Stock [Line Items] | |
Distributions declared (in USD per share) | 0.1477 |
Class M | |
Class of Stock [Line Items] | |
Distributions declared (in USD per share) | 0.1477 |
Class I | |
Class of Stock [Line Items] | |
Distributions declared (in USD per share) | $ 0.1539 |
Fair Value of Financial Instruments - Summary Of Company Financial Instruments Carried At Fair Value In The Consolidated Balance Sheets (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Financial Assets | ||
Mortgage-backed securities, at fair value | $ 225,095 | $ 159,464 |
Mortgage loans held in securitization trusts, at fair value | 330,629 | 324,263 |
Interest rate cap | 3,246 | 4,616 |
Total | 558,970 | 488,343 |
Financial Liabilities | ||
Mortgage obligations issued by securitization trusts, at fair value | 298,170 | 291,193 |
Level 1 | ||
Financial Assets | ||
Mortgage-backed securities, at fair value | 0 | 0 |
Mortgage loans held in securitization trusts, at fair value | 0 | 0 |
Interest rate cap | 0 | 0 |
Total | 0 | 0 |
Financial Liabilities | ||
Mortgage obligations issued by securitization trusts, at fair value | 0 | 0 |
Level 2 | ||
Financial Assets | ||
Mortgage-backed securities, at fair value | 225,095 | 159,464 |
Mortgage loans held in securitization trusts, at fair value | 0 | 0 |
Interest rate cap | 3,246 | 4,616 |
Total | 228,341 | 164,080 |
Financial Liabilities | ||
Mortgage obligations issued by securitization trusts, at fair value | 298,170 | 291,193 |
Level 3 | ||
Financial Assets | ||
Mortgage-backed securities, at fair value | 0 | 0 |
Mortgage loans held in securitization trusts, at fair value | 330,629 | 324,263 |
Interest rate cap | 0 | 0 |
Total | 330,629 | 324,263 |
Financial Liabilities | ||
Mortgage obligations issued by securitization trusts, at fair value | $ 0 | $ 0 |
Fair Value of Financial Instruments - Summary of changes in fair value of financial assets which are measured at fair value on a recurring basis (Details) - Mortgage loans held in securitization trusts, at fair value $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2023
USD ($)
| |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Fair value at beginning of period | $ 324,263 |
Accretion of discount (amortization of premium) | 0 |
Net realized gain (loss) | 0 |
Net change in unrealized appreciation (depreciation) | 6,366 |
Purchases | 0 |
Sales and repayments | 0 |
Issuances | 0 |
Transfer into Level 3 | 0 |
Transfers out of Level 3 | 0 |
Consolidation of securitization trusts | 0 |
Deconsolidation of securitization trusts | 0 |
Fair value at end of period | 330,629 |
Included in earnings | 0 |
Included in other comprehensive income | $ 0 |
Fair Value of Financial Instruments - Additional Information (Details) $ in Thousands |
Sep. 30, 2023
USD ($)
yr
|
Dec. 31, 2022
USD ($)
|
---|---|---|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Mortgage-backed securities, at fair value | $ | $ 225,095 | $ 159,464 |
Commercial Mortgage Backed Securities | CMBS, fair value option | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Mortgage-backed securities, at fair value | $ | 33,230 | |
Face value | $ | $ 36,469 | |
Minimum | Level 3 | Blended Yield | Discounted Cash Flow | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Mortgage obligation, measurement input | 0.1269 | |
Minimum | Level 3 | Expected Term | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Mortgage obligation, measurement input | yr | 1 | |
Maximum | Level 3 | Blended Yield | Discounted Cash Flow | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Mortgage obligation, measurement input | 0.1682 | |
Maximum | Level 3 | Expected Term | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Mortgage obligation, measurement input | yr | 3.5 | |
Weighted Average | Level 3 | Blended Yield | Discounted Cash Flow | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Mortgage obligation, measurement input | 0.1416 | |
Weighted Average | Level 3 | Expected Term | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Mortgage obligation, measurement input | yr | 2.6 |
Fair Value of Financial Instruments - Summary of Carrying Amount, Face Amount, and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Financial Liabilities | ||
Collateralized loan obligations | $ 4,306,272 | $ 4,336,701 |
Book Value | ||
Financial Assets | ||
Cash, cash equivalents and restricted cash | 214,875 | 201,618 |
Loans receivable, held-for-investment | 7,665,632 | 7,350,315 |
Mortgage-backed securities held-to-maturity | 74,543 | 68,559 |
Financial Liabilities | ||
Repurchase agreements | 239,457 | 756,816 |
Credit facilities | 839,507 | 298,544 |
Collateralized loan obligations | 4,306,272 | 4,336,701 |
Mortgage note payable | 123,480 | 122,568 |
Face Amount | ||
Financial Assets | ||
Cash, cash equivalents and restricted cash | 214,875 | 201,618 |
Loans receivable, held-for-investment | 7,735,561 | 7,350,271 |
Mortgage-backed securities held-to-maturity | 80,300 | 80,300 |
Financial Liabilities | ||
Repurchase agreements | 242,175 | 760,236 |
Credit facilities | 850,000 | 310,982 |
Collateralized loan obligations | 4,334,005 | 4,371,684 |
Mortgage note payable | 124,700 | 124,700 |
Fair Value | ||
Financial Assets | ||
Cash, cash equivalents and restricted cash | 214,875 | 201,618 |
Loans receivable, held-for-investment | 7,655,946 | 7,339,105 |
Mortgage-backed securities held-to-maturity | 67,203 | 68,559 |
Financial Liabilities | ||
Repurchase agreements | 242,175 | 760,236 |
Credit facilities | 850,000 | 310,982 |
Collateralized loan obligations | 4,334,005 | 4,371,684 |
Mortgage note payable | $ 124,700 | $ 124,700 |
Variable Interest Entities - Schedule of detailed information about the assets and liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
||
---|---|---|---|---|---|
Assets | |||||
Restricted cash | $ 47,935 | $ 17,953 | $ 26,121 | ||
Loans receivable, held-for-investment | 7,665,632 | 7,350,315 | $ 7,091,841 | ||
Interest receivable | 35,987 | 32,240 | |||
Other assets | 6,155 | 9,281 | |||
Mortgage loans held in securitization trusts, at fair value | 330,629 | 324,263 | |||
Total assets | [1] | 8,784,408 | 8,337,816 | ||
Liabilities | |||||
Collateralized loan obligations, net | 4,306,272 | 4,336,701 | |||
Interest payable | 28,722 | 19,379 | |||
Other liabilities | 40,014 | 27,278 | |||
Mortgage obligations issued by securitization trusts, at fair value | 298,170 | 291,193 | |||
Total liabilities | [1] | 6,019,274 | 6,020,659 | ||
Variable Interest Entity, Primary Beneficiary | |||||
Assets | |||||
Restricted cash | 32,477 | 0 | |||
Loans receivable, held-for-investment | 5,498,839 | 5,546,779 | |||
Interest receivable | 23,228 | 24,144 | |||
Other assets | 7,034 | 853 | |||
Mortgage loans held in securitization trusts, at fair value | 330,629 | 324,263 | |||
Total assets | 5,892,207 | 5,896,039 | |||
Liabilities | |||||
Collateralized loan obligations, net | 4,306,272 | 4,336,701 | |||
Interest payable | 12,022 | 12,631 | |||
Other liabilities | 533 | 473 | |||
Mortgage obligations issued by securitization trusts, at fair value | 298,170 | 291,193 | |||
Total liabilities | $ 4,616,997 | $ 4,640,998 | |||
|
Variable Interest Entities - Additional Information (Details) $ in Thousands |
Sep. 30, 2023
USD ($)
|
---|---|
Variable Interest Entity, Not Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
Maximum exposure to loss | $ 317,117 |
Derivative Instrument - Summary of Derivative Instruments (Details) - Interest Rate Cap $ in Thousands |
Sep. 30, 2023
USD ($)
|
---|---|
Derivative [Line Items] | |
Notional Amount | $ 126,700 |
Strike | 2.25% |
Fair Value | $ 3,246 |
Derivative Instrument - Summary of Fair Value of the Company Derivative Financial Instrument (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net change in unrealized gain on interest rate cap | $ (762) | $ 1,758 | $ (1,370) | $ 309 |
Interest Rate Cap | Unrealized Loss | Other income (loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net change in unrealized gain on interest rate cap | $ (762) | $ 1,758 | $ (1,370) | $ 309 |
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