QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) | |
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(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 | ☐ | |||
☒ | Smaller reporting company | |||||
Emerging growth company |
Page |
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PART I—FINANCIAL INFORMATION |
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ITEM 1. |
1 |
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1 |
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2 |
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3 |
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4 |
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6 |
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7 |
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ITEM 2. |
41 |
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ITEM 3. |
56 |
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ITEM 4. |
58 |
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PART II—OTHER INFORMATION |
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ITEM 1. |
58 |
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ITEM 1A. |
58 |
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ITEM 2. |
59 |
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ITEM 3. |
59 |
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ITEM 4. |
59 |
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ITEM 5. |
59 |
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ITEM 6. |
60 |
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62 |
June 30, 2022 (Unaudited) |
December 31, 2021 |
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Assets |
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Cash and cash equivalents |
$ | $ | ||||||
Restricted cash |
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Loans receivable, held-for-investment |
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Mortgage-backed securities held-to-maturity |
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Mortgage-backed securities available-for-sale, |
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Investment in real estate, net |
— | |||||||
Receivable for investments sold and repaid |
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Interest receivable |
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Deferred financing costs |
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Other assets |
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Total assets (1) |
$ | $ | ||||||
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Liabilities |
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Collateralized loan obligations (net of deferred financing costs of $ |
$ | $ | ||||||
Repurchase agreements payable (net of deferred financing costs of $ |
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Credit facilities payable (net of deferred financing costs of $ |
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Mortgage note payable (net of deferred financing costs of $ |
— | |||||||
Due to related party |
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Interest payable |
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Payable for shares repurchased |
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Other liabilities |
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Total liabilities (1) |
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Commitments and contingencies (See Note 11) |
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Stockholders’ equity |
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Preferred stock, $ |
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Class F common stock, $ |
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Class Y common stock, $ |
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Class T common stock, $ |
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Class S common stock, $ |
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Class D common stock, $ |
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Class M common stock, $ |
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Class I common stock, $ |
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Additional paid-in capital |
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Accumulated other comprehensive income (loss) |
( |
) | ||||||
Retained earnings |
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Total stockholders’ equity |
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Total liabilities and stockholders’ equity |
$ | $ | ||||||
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(1) | The June 30, 2022 and December 31, 2021 consolidated balance sheets include assets of consolidated variable interest entities, or VIEs, that can only be used to settle obligations of the VIEs, and liabilities of consolidated VIEs for which creditors do not have recourse to the Company. As of June 30, 2022 and December 31, 2021, assets of the VIEs totaled $ |
Three Months Ended June 30, |
Six Months Ended June 30, |
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2022 |
2021 |
2022 |
2021 |
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Net interest income |
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Interest income |
$ | $ | $ | $ | ||||||||||||
Less: Interest expense |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
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Net interest income |
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Other expenses |
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Management and performance fees |
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General and administrative expenses |
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Less: Expense limitation |
— | — | — | ( |
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Add: Expense recoupment to sponsor |
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Net other expenses |
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Other income (loss) |
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Net change in unrealized gain (loss) on interest rate cap |
( |
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) | — | ||||||||||
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Total other income (loss) |
( |
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) | — | ||||||||||
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Net income |
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Preferred stock dividends |
( |
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) | ( |
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Net income attributable to FS Credit Real Estate Income Trust, Inc. |
$ | $ | $ | $ | ||||||||||||
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Per share information—basic and diluted |
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Net income per share of common stock (earnings per share) |
$ | $ | $ | $ | ||||||||||||
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Weighted average common stock outstanding |
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Three Months Ended June 30, |
Six Months Ended June 30, |
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2022 |
2021 |
2022 |
2021 |
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Net income |
$ | $ | $ | $ | ||||||||||||
Other comprehensive income |
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Net change in unrealized gain (loss) on mortgage-backed securities available-for-sale |
( |
) | ( |
) | ||||||||||||
Total other comprehensive income (loss) |
( |
) | ( |
) | ||||||||||||
Comprehensive income |
$ | $ | $ | $ | ||||||||||||
Par Value |
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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 |
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Three Months Ended June 30, 2022 |
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Balance as of March 31, 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 |
— | — | — | — | — | — | — | — | ( |
) | — | ( |
) | |||||||||||||||||||||||||||||||
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Balance as of June 30, 2022 |
$ | $ | $ | $ | $ | $ | $ | $ | $ | ( |
) | $ | $ | |||||||||||||||||||||||||||||||
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Three Months Ended June 30, 2021 |
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Balance as of March 31, 2021 |
$ | $ | $ | $ | $ | $ | $ | $ | $ | — | $ | $ | ||||||||||||||||||||||||||||||||
Common stock issued |
— | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Distributions declared |
— | — | — | — | — | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||||||||||||||
Proceeds from distribution reinvestment plan |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Redemptions of common stock |
— | ( |
) | — | — | — | ( |
) | — | ( |
) | — | — | ( |
) | |||||||||||||||||||||||||||||
Stockholder servicing fees |
— | — | — | — | — | — | — | ( |
) | — | — | ( |
) | |||||||||||||||||||||||||||||||
Offering costs |
— | — | — | — | — | — | — | ( |
) | — | — | ( |
) | |||||||||||||||||||||||||||||||
Net income |
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Dividends on preferred stock |
— | — | — | — | — | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||||||||||||||
Other comprehensive income |
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
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Balance as of June 30, 2021 |
$ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
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(1) | Comprised solely of unrealized gain (loss) on mortgage-backed securities, available for sale. |
Par Value |
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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 |
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Six Months Ended June 30, 2022 |
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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 |
— | — | — | — | — | — | — | — | ( |
) | — | ( |
) | |||||||||||||||||||||||||||||||
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Balance as of June 30, 2022 |
$ | $ | $ | $ | $ | $ | $ | $ | $ | ( |
) | $ | $ | |||||||||||||||||||||||||||||||
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Six Months Ended June 30, 2021 |
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Balance as of December 31, 2020 |
$ | $ | $ | $ | $ | $ | $ | $ | $ | — | $ | $ | ||||||||||||||||||||||||||||||||
Common stock issued |
— | — | — | |||||||||||||||||||||||||||||||||||||||||
Distributions declared |
— | — | — | — | — | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||||||||||||||
Proceeds from distribution reinvestment plan |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Redemptions of common stock |
— | ( |
) | — | — | — | ( |
) | — | ( |
) | — | — | ( |
) | |||||||||||||||||||||||||||||
Stockholder servicing fees |
— | — | — | — | — | — | — | ( |
) | — | — | ( |
) | |||||||||||||||||||||||||||||||
Offering costs |
— | — | — | — | — | — | — | ( |
) | — | — | ( |
) | |||||||||||||||||||||||||||||||
Net income |
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Dividends on preferred stock |
— | — | — | — | — | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||||||||||||||
Other comprehensive income |
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
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Balance as of June 30, 2021 |
$ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
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(1) |
Comprised solely of unrealized gain (loss) on mortgage-backed securities, available for sale. |
Six Months Ended June 30, |
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2022 |
2021 |
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Cash flows from operating activities |
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Net income |
$ | $ | ||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities |
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Performance contingent rights issued |
— | |||||||
Amortization of deferred fees on loans and debt securities |
( |
) | ( |
) | ||||
Amortization of deferred financing costs and discount |
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Net change in unrealized loss on interest rate cap |
— | |||||||
Changes in assets and liabilities |
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Reimbursement due from sponsor |
— | |||||||
Interest receivable |
( |
) | ( |
) | ||||
Other assets |
( |
) | ||||||
Due to related party |
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Interest payable |
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Other liabilities |
( |
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Net cash provided by (used in) operating activities |
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Cash flows used in investing activities |
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Origination and fundings of loans receivable, held-for-investment |
( |
) | ( |
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Principal collections from loans receivable, held-for-investment |
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Exit and extension fees received on loans receivable, held-for-investment |
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Purchases of mortgage-backed securities available-for-sale |
( |
) | ( |
) | ||||
Principal repayments of mortgage-backed securities available-for-sale |
— | |||||||
Purchases of mortgage-backed securities held-to-maturity |
( |
) | — | |||||
Acquisition of real estate |
( |
) | — | |||||
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Net cash provided by (used in) investing activities |
( |
) | ( |
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Cash flows from financing activities |
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Issuance of common stock |
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Redemptions of common stock |
( |
) | ( |
) | ||||
Stockholder distributions paid |
( |
) | ( |
) | ||||
Stockholder servicing fees |
( |
) | ( |
) | ||||
Offering costs paid |
( |
) | ( |
) | ||||
Borrowing under mortgage note payable |
— | |||||||
Borrowings under repurchase agreements |
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Repayments under repurchase agreements |
( |
) | ( |
) | ||||
Borrowings under credit facilities |
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Repayments under credit facilities |
( |
) | ( |
) | ||||
Proceeds from issuance of collateralized loan obligations |
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Repayment of collateralized loan obligations |
( |
) | — | |||||
Payment of deferred financing costs |
( |
) | ( |
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Net cash provided by (used in) financing activities |
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Total increase (decrease) in cash, cash equivalents and restricted cash |
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Cash, cash equivalents and restricted cash at beginning of period |
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Cash, cash equivalents and restricted cash at end of period |
$ | $ | ||||||
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Supplemental disclosure of cash flow information and non-cash financial activities |
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Payments of interest |
$ | $ | ||||||
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Accrued stockholder servicing fee |
$ | $ | ||||||
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Distributions payable |
$ | $ | ||||||
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Reinvestment of stockholder distributions |
$ | $ | ||||||
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Payable for shares repurchased |
$ | $ | ||||||
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Loan principal payments held by servicer |
$ | $ | — | |||||
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Loan transferred from loans receivable, held-for-investment held-for-sale |
$ | — | $ | |||||
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June 30, |
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2022 |
2021 |
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Cash and cash equivalents |
$ | $ | ||||||
Restricted cash |
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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: A loan that has a risk of realizing a principal 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 |
Description |
Depreciable Life | |
Building | ||
Building and land improvements | ||
Furniture, fixtures and equipment | ||
Tenant improvements | ||
Lease intangibles |
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. |
• | 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, |
• | Mortgage-backed securities available-for-sale: |
• | Mortgage-backed securities held-to-maturity: |
• | 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. |
June 30, 2022 (Unaudited) |
December 31, 2021 |
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Number of loans |
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Principal balance |
$ | $ | ||||||
Net book value |
$ | $ | ||||||
Unfunded loan commitments (1) |
$ | $ | ||||||
Weighted-average cash coupon (2) |
+ |
% | + |
% | ||||
Weighted-average all-in yield(2) |
+ |
% | + |
% | ||||
Weighted-average maximum maturity (years) (3) |
(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 indexed to the London Interbank Offered Rate, or LIBOR, and 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) | Maximum maturity assumes all extension options are exercised by the borrowers; however, loans may be repaid prior to such date. |
For the Six Months Ended June 30, |
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2022 |
2021 |
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Balance at beginning of period |
$ | $ | ||||||
Loan fundings |
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Loan repayments |
( |
) | ( |
) | ||||
Amortization of deferred fees on loans |
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Exit and extension fees received on loans |
( |
) | ( |
) | ||||
Balance at end of period |
$ | $ | ||||||
June 30, 2022 (Unaudited) |
December 31, 2021 |
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Property Type |
Net Book Value |
Percentage |
Net Book Value |
Percentage |
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Multifamily |
$ | % | $ | % | ||||||||||||
Office |
% | % | ||||||||||||||
Hospitality |
% | % | ||||||||||||||
Retail |
% | % | ||||||||||||||
Industrial |
% | % | ||||||||||||||
Self Storage |
% | % | ||||||||||||||
Various |
% | % | ||||||||||||||
Mixed Use |
% | % | ||||||||||||||
Total |
$ | % | $ | % | ||||||||||||
June 30, 2022 (Unaudited) |
December 31, 2021 |
|||||||||||||||
Geographic Location (1) |
Net Book Value |
Percentage |
Net Book Value |
Percentage |
||||||||||||
South |
$ | % | $ | % | ||||||||||||
West |
% | % | ||||||||||||||
Northeast |
% | % | ||||||||||||||
Various |
% | % | ||||||||||||||
Midwest |
% | % | ||||||||||||||
Total |
$ | % | $ | % | ||||||||||||
(1) | As defined by the United States Department of Commerce, Bureau of the Census. |
June 30, 2022 (Unaudited) |
December 31, 2021 |
|||||||||||||||||||||||
Risk Rating |
Number of Loans |
Net Book Value |
Percentage |
Number of Loans |
Net Book Value |
Percentage |
||||||||||||||||||
1 |
— | $ | — | — | — | $ | — | — | ||||||||||||||||
2 |
— | — | — | — | — | — | ||||||||||||||||||
3 |
% | % | ||||||||||||||||||||||
4 |
— | — | — | — | — | — | ||||||||||||||||||
5 |
— | — | — | — | — | — | ||||||||||||||||||
Total |
$ | % | $ | % | ||||||||||||||||||||
Gross Unrealized |
Weighted Average |
|||||||||||||||||||||||||||
Outstanding Face Amount |
Amortized Cost Basis |
Gains |
Losses |
Fair Value |
Coupon |
Remaining Duration (years) |
||||||||||||||||||||||
June 30, 2022 (Unaudited) |
||||||||||||||||||||||||||||
CMBS, available-for-sale |
$ | $ | $ | $ | ( |
) | $ | % | ||||||||||||||||||||
December 31, 2021 |
||||||||||||||||||||||||||||
CMBS, available-for-sale |
$ | $ | $ | $ | ( |
) | $ | % |
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 |
|||||||||||||
June 30, 2022 (Unaudited) |
||||||||||||||||
CMBS, available-for-sale |
$ | $ | $ | ( |
) | $ | ||||||||||
December 31, 2021 |
||||||||||||||||
CMBS, available-for-sale |
$ | $ | $ | ( |
) | $ |
Net Carrying Amount (Amortized Cost) |
Gross Unrecognized Holding Gains |
Gross Unrecognized Holding Losses |
Fair Value |
|||||||||||||
June 30, 2022 (Unaudited) |
||||||||||||||||
CMBS, held-to-maturity |
$ | $ | ||||||||||||||
December 31, 2021 |
||||||||||||||||
CMBS, held-to-maturity |
$ | $ |
Total |
Less than 1 year |
1-3 years |
3-5 years |
More than 5 years |
||||||||||||||||
June 30, 2022 (Unaudited) |
||||||||||||||||||||
CMBS, held-to-maturity |
$ | $ | $ | |||||||||||||||||
December 31, 2021 |
||||||||||||||||||||
CMBS, held-to-maturity |
$ | $ |
June 30, 2022 (Unaudited) |
||||
Building and building improvements |
$ | |||
Land and land improvements |
||||
Furniture, fixtures and equipment |
||||
Real estate, net |
$ | |||
Amount |
||||
Building and building improvements |
$ | |||
Land and land improvements |
||||
Furniture, fixtures and equipment |
||||
In-place lease intangibles |
||||
Net purchase price |
$ | |||
As of June 30, 2022 (Unaudited) |
||||||||||||||||||||||||
Arrangement (1) |
Rate (2) |
Amount Outstanding |
Amount Available |
Maturity Date |
Carrying Amount of Collateral |
Fair Value of Collateral |
||||||||||||||||||
Collateralized Loan Obligations |
||||||||||||||||||||||||
2019-FL1 Notes |
(3) |
$ | $ | — | $ | $ | ||||||||||||||||||
2021-FL2 Notes |
(3) |
— | ||||||||||||||||||||||
2021-FL3 Notes |
(3) |
— | ||||||||||||||||||||||
2022-FL4 Notes |
( 6 ) |
— | ||||||||||||||||||||||
2022-FL5 Notes |
( 6 ) |
— | ||||||||||||||||||||||
— | ||||||||||||||||||||||||
Repurchase Agreements |
||||||||||||||||||||||||
WF-1 Facility |
( 4 ) |
|||||||||||||||||||||||
GS-1 Facility |
( 5 ) |
|||||||||||||||||||||||
BB-1 Facility |
( 6 ) |
|||||||||||||||||||||||
RBC Facility |
— | N/A | — | — | ||||||||||||||||||||
Revolving Credit Facility |
||||||||||||||||||||||||
CNB Facility |
( 7 ) |
— | — | |||||||||||||||||||||
MM-1 Facility |
( 8 )(9 ) |
|||||||||||||||||||||||
Mortgage Loan |
||||||||||||||||||||||||
Natixis Loan |
( 8 ) |
|||||||||||||||||||||||
Total |
$ |
$ |
$ |
$ |
||||||||||||||||||||
(1) | The carrying 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 |
(4) |
Benchmark rate is subject to a |
(5) |
Term SOFR is subject to a 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 |
(7) |
Term SOFR is subject to a floor. The CNB Facility is subject to a credit spread adjustment of |
(8) |
Term SOFR is subject to a |
(9) |
The MM-1 Facility is subject to a credit spread adjustment of |
As of December 31, 2021 |
||||||||||||||||||||||||
Arrangement (1) |
Rate (2) |
Amount Outstanding |
Amount Available |
Maturity Date |
Carrying Amount of Collateral |
Fair Value of Collateral |
||||||||||||||||||
Collateralized Loan Obligation |
||||||||||||||||||||||||
2019-FL1 Notes |
(3) |
$ | $ | — | $ | $ | ||||||||||||||||||
2021-FL2 Notes |
(3) |
— | ||||||||||||||||||||||
2021-FL3 Notes |
(3) |
— | ||||||||||||||||||||||
— | ||||||||||||||||||||||||
Repurchase Agreements |
||||||||||||||||||||||||
WF-1 Facility |
( 4 ) |
|||||||||||||||||||||||
GS-1 Facility |
( 5 ) |
|||||||||||||||||||||||
BB-1 Facility |
||||||||||||||||||||||||
RBC Facility |
— | N/A | — | — | ||||||||||||||||||||
Revolving Credit Facility |
||||||||||||||||||||||||
CNB Facility |
( 6 ) |
— | — | |||||||||||||||||||||
MM-1 Facility |
(3) |
|||||||||||||||||||||||
Total |
$ |
$ |
$ |
$ |
||||||||||||||||||||
(1) | The carrying amount outstanding under the facilities approximates their fair value. |
(2) | The rates are expressed over the relevant floating benchmark rates, which include USD LIBOR. |
(3) | USD LIBOR is subject to a |
(4) |
USD LIBOR is subject to a WF-1 facility are using term SOFR as the reference rate, subject to the rates specified in their applicable transaction confirmations. |
(5) |
USD LIBOR is subject to a GS-1 and Goldman Sachs, may mutually agree on rates outside this range or a different LIBOR floor on an asset by asset basis. |
( 6 ) |
USD LIBOR is subject to a |
Collateralized Loan Obligations |
Repurchase Agreements |
Revolving Credit Facility |
Mortgage Loan |
Total |
||||||||||||||||
2022 |
$ | $ | $ | $ | $ | |||||||||||||||
2023 |
||||||||||||||||||||
2024 |
||||||||||||||||||||
2025 |
||||||||||||||||||||
2026 |
||||||||||||||||||||
Thereafter |
||||||||||||||||||||
Total |
$ | $ | $ | $ | $ | |||||||||||||||
As of June 30, 2022 (Unaudited) |
||||||||
Collateralized Loan Obligation |
Total Loans |
Principal |
||||||
2019-FL1 Notes |
$ | |||||||
2021-FL2 Notes |
||||||||
2021-FL3 Notes |
||||||||
2022-FL4 Notes |
||||||||
2022-FL5 Notes |
||||||||
Total |
$ | |||||||
As of June 30, 2022 (Unaudited) |
||||
Collateralized Loan Obligation |
Issuance Costs and Discount to be Amortized |
|||
2019-FL1 Notes |
$ | |||
2021-FL2 Notes |
||||
2021-FL3 Notes |
||||
2022-FL4 Notes |
||||
2022-FL5 Notes |
||||
Total |
$ | |||
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||||||
Related Party |
Source Agreement |
Description |
2022 |
2021 |
2022 |
2021 |
||||||||||||||
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) |
$ | $ | $ | $ |
(1) | During the six months ended June 30, 2022, FS Real Estate Advisor received $ |
June 30, 2022 and 2021, $ |
(2) | During the six months ended June 30, 2022 and 2021, $ |
(3) | During the six months ended June 30, 2022 and 2021, $ |
• | with respect to the Company’s outstanding Class T shares equal to |
• | with respect to the Company’s outstanding Class S shares equal to |
• | with respect to the Company’s outstanding Class D shares equal to |
• | with respect to the Company’s outstanding Class M shares equal to |
For the Three Months Ended |
Amount of Expense Reimbursement |
Recoupable Amount |
Recoupment paid or payable to sponsor |
Expired Amount |
Recoupment eligibility expiration |
|||||||||||||||
June 30, 2022 |
$ | $ | $ | $ | N/A | |||||||||||||||
March 31, 2022 |
— | — | — | — | N/A | |||||||||||||||
December 31, 2021 |
— | — | — | — | N/A | |||||||||||||||
September 30, 2021 |
— | — | — | — | N/A | |||||||||||||||
June 30, 2021 |
— | — | — | — | N/A | |||||||||||||||
March 31, 2021 |
— | — | ||||||||||||||||||
December 31, 2020 |
— | |||||||||||||||||||
September 30, 2020 |
— | — | ||||||||||||||||||
June 30, 2020 |
— | — | ||||||||||||||||||
March 31, 2020 |
— | — | — | — | N/A | |||||||||||||||
December 31, 2019 |
— | — | ||||||||||||||||||
September 30, 2019 |
— | — | ||||||||||||||||||
June 30, 2019 |
— | — | Expired |
|||||||||||||||||
March 31, 2019 |
— | — | Expired |
|||||||||||||||||
December 31, 2018 |
— | Expired |
||||||||||||||||||
September 30, 2018 |
— | Expired |
||||||||||||||||||
June 30, 2018 |
— | Expired |
||||||||||||||||||
March 31, 2018 |
— | — | Expired |
|||||||||||||||||
December 31, 2017 |
— | — | Expired |
|||||||||||||||||
September 30, 2017 |
— | — | Expired |
|||||||||||||||||
$ | $ | $ | $ | |||||||||||||||||
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 June 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 June 30, 2022 |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares |
||||||||||||||||||||||||||||||||
Class F |
Class Y |
Class T |
Class S |
Class D |
Class M |
Class I |
Total |
|||||||||||||||||||||||||
Balance as of December 31, 2020 |
||||||||||||||||||||||||||||||||
Issuance of common stock |
||||||||||||||||||||||||||||||||
Reinvestment of distributions |
||||||||||||||||||||||||||||||||
Redemptions of common stock |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
Transfers in or out |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance as of June 30, 2021 |
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount |
||||||||||||||||||||||||||||||||
Class F |
Class Y |
Class T |
Class S |
Class D |
Class M |
Class I |
Total |
|||||||||||||||||||||||||
Balance as of December 31, 2020 |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Issuance of common stock |
||||||||||||||||||||||||||||||||
Reinvestment of distributions |
||||||||||||||||||||||||||||||||
Redemptions of common stock |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
Transfers in or out |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
Accrued stockholder servicing fees (1) |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance as of June 30, 2021 |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
Record Date |
Class F |
Class Y |
Class T |
Class S |
Class D |
Class M |
Class I |
|||||||||||||||||||||
January 28, 2022 |
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
February 25, 2022 |
||||||||||||||||||||||||||||
March 30, 2022 |
||||||||||||||||||||||||||||
April 28, 2022 |
||||||||||||||||||||||||||||
May 27, 2022 |
||||||||||||||||||||||||||||
June 29, 2022 |
||||||||||||||||||||||||||||
Total |
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||||||
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) |
$ | $ | $ | $ | ||||||||||||
(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. |
Class F |
Class Y |
Class T |
Class S |
Class D |
Class M |
Class I |
||||||||||||||||||
$ |
$ | $ | $ | $ | $ | $ |
June 30, 2022 (Unaudited) |
December 31, 2021 |
|||||||||||||||||||||||||||||||
Total |
Level 1 |
Level 2 |
Level 3 |
Total |
Level 1 |
Level 2 |
Level 3 |
|||||||||||||||||||||||||
Mortgage-backed securities available-for-sale |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Interest rate cap |
$ | $ | $ | $ | $ | $ | $ | $ |
June 30, 2022 (Unaudited) |
December 31, 2021 |
|||||||||||||||||||||||
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) |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Mortgage note payable (2) |
$ | $ | $ | $ | $ | $ |
(1) | Book value of loans receivable represents the face amount, net of unamortized loan fees and costs and accrual of exit fees, as applicable. |
(2) | Book value represents the face amount, net of deferred financing costs. |
June 30, 2022 (Unaudited) |
December 31, 2021 |
|||||||
Assets: |
||||||||
Restricted cash |
$ | $ | ||||||
Loans receivable, held-for-investment |
||||||||
Interest receivable |
||||||||
Other assets |
||||||||
Total assets |
$ | $ | ||||||
Liabilities |
||||||||
Collateralized loan obligations (net of deferred financing costs of $ |
$ | $ | ||||||
Interest payable |
||||||||
Other liabilities |
||||||||
Total liabilities |
$ | $ | ||||||
June 30, 2022 |
||||
Intangible assets (1) |
||||
In-place lease intangibles |
$ | |||
Total intangible assets |
$ | |||
(1) | Included in Other assets in the Company’s consolidated balance sheets. |
Amortization |
||||
2022 (remaining) |
$ | |||
2023 |
||||
2024 |
||||
2025 |
||||
2026 |
||||
2027 |
||||
Thereafter |
||||
Total |
$ | |||
Type of Derivative |
Notional Amount |
Strike |
Effective Date |
Maturity Date |
Fair Value (1) |
|||||||||||||||
Interest Rate Cap |
$ | % | $ |
(1) | Included in Other assets in the Company’s consolidated balance sheets. |
Type of Derivative |
Realized/Unrealized Gain (Loss) |
Location of Gain (Loss) Recognized in Net Income |
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||||||||||||||
Interest Rate Cap |
Unrealized Loss | (1 | ) | $ | ( |
) | $ | $ | ( |
) | $ |
(1) | Included in Other income (loss) in the Company’s consolidated statements of operations |
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations (in thousands, except share and per share amounts). |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||||||
Loan fundings (1) |
$ | 2,042,818 | $ | 793,678 | $ | 3,084,586 | $ | 1,018,208 | ||||||||
Loan repayments |
(154,561 | ) | (72,182 | ) | (389,036 | ) | (96,067 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total net fundings |
$ | 1,888,257 | $ | 721,496 | $ | 2,695,550 | $ | 922,141 | ||||||||
|
|
|
|
|
|
|
|
(1) | Includes new loan originations and additional fundings made under existing loans. |
June 30, 2022 (Unaudited) |
December 31, 2021 |
|||||||
Number of loans |
135 | 102 | ||||||
Principal balance |
$ | 6,539,424 | $ | 3,843,110 | ||||
Net book value |
$ | 6,538,370 | $ | 3,841,868 | ||||
Unfunded loan commitments (1) |
$ | 610,703 | $ | 414,818 | ||||
Weighted-average cash coupon (2) |
+3.82 | % | +3.68 | % | ||||
Weighted-average all-in yield(2) |
+3.87 | % | +3.73 | % | ||||
Weighted-average maximum maturity (years) (3) |
4.4 | 4.5 |
(1) | We may be required to provide funding when requested by the borrower in accordance with the terms of the underlying agreements. |
(2) | Our floating-rate loans are indexed to LIBOR and SOFR. In addition to cash coupon, all-in yield includes accretion of discount (amortization of premium) and accrual of exit fees. |
(3) | Maximum maturity assumes all extension options are exercised by the borrower; however loans may be repaid prior to such date. |
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 | 6/9/2022 | $ | 365,611 | $ | 336,733 | $ | 336,683 | +3.30 | % | +3.30 | % | 6/9/2027 | Various | Multifamily | 74 | % | |||||||||||||||||||||
2 |
Senior Loan | 4/28/2022 | 195,000 | 195,000 | 194,980 | +4.65 | % | +4.76 | % | 5/9/2027 | New York, NY | Hospitality | 70 | % | ||||||||||||||||||||||||
3 |
Senior Loan | 12/7/2021 | 175,000 | 150,783 | 150,767 | +3.60 | % | +3.60 | % | 12/9/2026 | Miami, FL | Retail | 38 | % | ||||||||||||||||||||||||
4 |
Mezz Loan | 10/1/2021 | 150,000 | 99,949 | 99,295 | 10.00 | % | 10.26 | % | 4/1/2026 | Various | Various | 93 | % | ||||||||||||||||||||||||
5 |
Senior Loan | 6/8/2022 | 144,160 | 144,160 | 144,175 | +3.89 | % | +4.14 | % | 6/9/2027 | New York, NY | Multifamily | 73 | % | ||||||||||||||||||||||||
6 |
Senior Loan | 10/12/2021 | 130,747 | 130,747 | 130,747 | +3.00 | % | +3.00 | % | 6/9/2026 | Philadelphia, PA | Multifamily | 69 | % | ||||||||||||||||||||||||
7 |
Senior Loan | 3/31/2022 | 120,470 | 81,979 | 81,962 | +4.30 | % | +4.31 | % | 4/9/2027 | Addison, TX | Office | 67 | % | ||||||||||||||||||||||||
8 |
Senior Loan | 9/9/2021 | 118,265 | 118,265 | 118,250 | +3.20 | % | +3.20 | % | 9/9/2026 | Various, NY | Self Storage | 70 | % | ||||||||||||||||||||||||
9 |
Senior Loan | 6/14/2022 | 111,100 | 97,500 | 97,475 | +3.80 | % | +3.81 | % | 6/9/2027 | San Jose, CA | Office | 39 | % | ||||||||||||||||||||||||
10 |
Senior Loan | 3/10/2022 | 110,150 | 90,577 | 90,549 | +5.00 | % | +5.01 | % | 4/9/2027 | Santa Clara, CA | Office | 62 | % | ||||||||||||||||||||||||
11 |
Senior Loan | 5/26/2022 | 108,500 | 97,172 | 97,157 | +3.40 | % | +3.59 | % | 6/9/2027 | Mesa, AZ | Multifamily | 67 | % | ||||||||||||||||||||||||
12 |
Senior Loan | 6/30/2022 | 106,000 | 100,000 | 99,985 | +4.15 | % | +4.15 | % | 7/9/2027 | Lynwood, CA | Retail | 61 | % | ||||||||||||||||||||||||
13 |
Senior Loan | 5/18/2022 | 105,000 | 105,000 | 105,000 | +3.50 | % | +3.50 | % | 6/9/2027 | New Rochelle, NY | Multifamily | 61 | % | ||||||||||||||||||||||||
14 |
Senior Loan | 1/13/2022 | 103,600 | 91,942 | 91,915 | +3.55 | % | +3.56 | % | 1/9/2027 | Austin, TX | Multifamily | 80 | % | ||||||||||||||||||||||||
15 |
Senior Loan | 6/28/2022 | 100,000 | 100,000 | 99,975 | +3.15 | % | +3.16 | % | 7/9/2027 | Fayetteville, NC | Multifamily | 76 | % | ||||||||||||||||||||||||
16 |
Senior Loan | 12/30/2021 | 95,000 | 95,000 | 94,983 | +4.20 | % | +4.21 | % | 1/9/2027 | San Diego, CA | Hospitality | 58 | % | ||||||||||||||||||||||||
17 |
Senior Loan | 12/21/2021 | 93,900 | 72,888 | 72,873 | +3.80 | % | +3.81 | % | 1/9/2027 | Houston, TX | Multifamily | 76 | % | ||||||||||||||||||||||||
18 |
Senior Loan | 5/13/2022 | 93,500 | 84,327 | 84,308 | +4.25 | % | +4.40 | % | 5/9/2027 | New York, NY | Multifamily | 60 | % | ||||||||||||||||||||||||
19 |
Senior Loan | 4/29/2022 | 90,000 | 90,000 | 90,000 | +3.55 | % | +3.55 | % | 5/6/2027 | Reseda, CA | Multifamily | 69 | % | ||||||||||||||||||||||||
20 |
Senior Loan | 5/13/2022 | 89,500 | 76,173 | 76,153 | +4.25 | % | +4.40 | % | 5/9/2027 | New York, NY | Multifamily | 58 | % | ||||||||||||||||||||||||
21 |
Senior Loan | 2/4/2022 | 89,000 | 89,000 | 89,180 | +3.75 | % | +3.75 | % | 2/1/2025 | Temecula, CA | Multifamily | 75 | % | ||||||||||||||||||||||||
22 |
Senior Loan | 12/15/2021 | 85,000 | 81,800 | 81,779 | +3.35 | % | +3.36 | % | 12/9/2026 | Sunny Isles, FL | Multifamily | 74 | % | ||||||||||||||||||||||||
23 |
Senior Loan | 5/12/2021 | 85,000 | 85,000 | 85,036 | 3.00 | % | +3.05 | % | 5/9/2026 | Detroit, MI | Industrial | 73 | % | ||||||||||||||||||||||||
24 |
Senior Loan | 3/9/2022 | 84,000 | 78,077 | 78,077 | +3.55 | % | +3.55 | % | 3/9/2027 | Temple Hills, MD | Multifamily | 75 | % | ||||||||||||||||||||||||
25 |
Senior Loan | 12/23/2021 | 83,400 | 73,028 | 73,005 | +4.45 | % | +4.46 | % | 1/9/2027 | Westminster, CO | Retail | 65 | % | ||||||||||||||||||||||||
26 |
Senior Loan | 12/22/2021 | 81,500 | 54,000 | 54,049 | +4.75 | % | +4.93 | % | 1/9/2027 | Farmers Branch, TX | Office | 62 | % | ||||||||||||||||||||||||
27 |
Senior Loan | 2/28/2022 | 75,000 | 72,250 | 72,250 | +3.85 | % | +3.85 | % | 3/9/2027 | Atlanta, GA | Multifamily | 68 | % | ||||||||||||||||||||||||
28 |
Senior Loan | 9/10/2021 | 71,201 | 66,900 | 66,879 | +3.25 | % | +3.26 | % | 10/9/2026 | Richardson, TX | Multifamily | 68 | % | ||||||||||||||||||||||||
29 |
Senior Loan | 4/26/2022 | 69,350 | 63,340 | 63,309 | +3.72 | % | +3.74 | % | 5/9/2027 | Tucson, AZ | Multifamily | 68 | % | ||||||||||||||||||||||||
30 |
Senior Loan | 4/26/2021 | 68,100 | 66,000 | 65,984 | +3.15 | % | +3.16 | % | 5/9/2026 | North Las Vegas, NV | Multifamily | 72 | % | ||||||||||||||||||||||||
31 |
Senior Loan | 4/27/2022 | 67,940 | 57,720 | 57,702 | +4.00 | % | +4.06 | % | 5/9/2027 | Indianapolis, IN | Multifamily | 79 | % | ||||||||||||||||||||||||
32 |
Senior Loan | 12/21/2021 | 65,450 | 65,450 | 65,433 | +4.35 | % | +4.36 | % | 1/9/2027 | Dallas, TX | Hospitality | 58 | % | ||||||||||||||||||||||||
33 |
Senior Loan | 4/15/2021 | 64,460 | 62,657 | 62,641 | +2.80 | % | +2.81 | % | 5/9/2026 | Lawrenceville, GA | Multifamily | 75 | % | ||||||||||||||||||||||||
34 |
Senior Loan | 5/20/2022 | 63,001 | 62,039 | 62,031 | 4.15 | % | +4.15 | % | 5/9/2027 | Montauk, NY | Hospitality | 80 | % | ||||||||||||||||||||||||
35 |
Senior Loan | 4/13/2022 | 62,650 | 53,400 | 53,369 | +3.90 | % | +3.92 | % | 5/9/2027 | Houston, TX | Multifamily | 78 | % | ||||||||||||||||||||||||
36 |
Senior Loan | 7/29/2021 | 62,500 | 62,500 | 62,497 | +3.10 | % | +3.10 | % | 8/9/2026 | Maitland, FL | Multifamily | 72 | % | ||||||||||||||||||||||||
37 |
Senior Loan | 7/22/2021 | 62,100 | 60,100 | 60,082 | +3.30 | % | +3.31 | % | 8/9/2026 | Nashville, TN | Multifamily | 75 | % | ||||||||||||||||||||||||
38 |
Senior Loan | 8/2/2021 | 60,130 | 58,445 | 58,425 | +2.80 | % | +2.81 | % | 8/9/2026 | Austin, TX | Multifamily | 73 | % | ||||||||||||||||||||||||
39 |
Senior Loan | 2/15/2022 | 58,750 | 56,020 | 55,998 | +3.50 | % | +3.51 | % | 3/9/2027 | Antioch, TN | Multifamily | 79 | % | ||||||||||||||||||||||||
40 |
Senior Loan | 5/12/2022 | 58,165 | 53,885 | 53,870 | +3.35 | % | +3.36 | % | 5/9/2027 | Denver, CO | Multifamily | 80 | % | ||||||||||||||||||||||||
41 |
Senior Loan | 1/7/2022 | 58,000 | 53,275 | 53,321 | +4.25 | % | +4.43 | % | 11/9/2026 | Miami, FL | Hospitality | 49 | % | ||||||||||||||||||||||||
42 |
Senior Loan | 8/13/2021 | 57,500 | 51,311 | 51,292 | +3.10 | % | +3.19 | % | 9/9/2026 | Various, FL | Industrial | 68 | % | ||||||||||||||||||||||||
43 |
Senior Loan | 6/23/2022 | 57,000 | 48,498 | 48,475 | +4.75 | % | +4.85 | % | 7/9/2027 | Seattle, WA | Multifamily | 68 | % | ||||||||||||||||||||||||
44 |
Senior Loan | 6/18/2021 | 56,000 | 56,000 | 55,992 | +3.50 | % | +3.51 | % | 7/9/2026 | Chicago, IL | Multifamily | 77 | % | ||||||||||||||||||||||||
45 |
Senior Loan | 11/5/2021 | 55,960 | 48,644 | 48,636 | +3.10 | % | +3.10 | % | 11/9/2026 | Houston, TX | Industrial | 74 | % | ||||||||||||||||||||||||
46 |
Senior Loan | 2/17/2022 | 55,400 | 46,186 | 46,180 | +4.10 | % | +4.20 | % | 3/9/2027 | Indianapolis, IN | Multifamily | 80 | % | ||||||||||||||||||||||||
47 |
Senior Loan | 11/10/2021 | 54,476 | 45,522 | 45,531 | +3.75 | % | +4.10 | % | 11/9/2026 | Fayetteville, AR | Multifamily | 70 | % | ||||||||||||||||||||||||
48 |
Senior Loan | 3/7/2022 | 53,885 | 46,879 | 46,879 | +3.50 | % | +3.59 | % | 3/9/2027 | Humble, TX | Multifamily | 75 | % | ||||||||||||||||||||||||
49 |
Senior Loan | 8/9/2021 | 53,160 | 51,333 | 51,315 | +3.15 | % | +3.16 | % | 8/9/2026 | Philadelphia, PA | Multifamily | 79 | % | ||||||||||||||||||||||||
50 |
Senior Loan | 6/16/2022 | 52,280 | 44,280 | 44,270 | +3.80 | % | +3.81 | % | 7/9/2027 | Jacksonville, FL | Multifamily | 71 | % | ||||||||||||||||||||||||
51 |
Senior Loan | 3/12/2021 | 52,250 | 30,961 | 30,946 | +5.75 | % | +5.75 | % | 3/9/2026 | San Francisco, CA | Office | 65 | % | ||||||||||||||||||||||||
52 |
Senior Loan | 7/7/2021 | 52,200 | 44,970 | 44,952 | +3.00 | % | +3.00 | % | 7/9/2026 | Austin, FL | Multifamily | 74 | % | ||||||||||||||||||||||||
53 |
Senior Loan | 3/22/2022 | 50,750 | 50,750 | 50,750 | +3.60 | % | +3.60 | % | 4/9/2027 | Humble, TX | Multifamily | 72 | % | ||||||||||||||||||||||||
54 |
Senior Loan | 2/18/2022 | 49,240 | 33,480 | 33,458 | +3.90 | % | +3.92 | % | 3/9/2027 | Atlanta, GA | Office | 60 | % | ||||||||||||||||||||||||
55 |
Senior Loan | 4/26/2022 | 49,125 | 43,525 | 43,508 | +4.05 | % | +4.15 | % | 5/9/2027 | Decatur, GA | Multifamily | 72 | % | ||||||||||||||||||||||||
56 |
Senior Loan | 12/15/2021 | 49,000 | 49,000 | 48,979 | +3.45 | % | +3.46 | % | 12/9/2026 | Ladson, SC | Multifamily | 77 | % | ||||||||||||||||||||||||
57 |
Senior Loan | 6/23/2021 | 48,944 | 45,421 | 45,403 | +2.80 | % | +2.80 | % | 7/9/2026 | Roswell, GA | Multifamily | 75 | % |
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) |
||||||||||||||||||||||||||||
58 |
Senior Loan | 11/1/2021 | $ | 48,907 | $ | 44,798 | $ | 44,778 | +3.70 | % | +3.71 | % | 11/9/2026 | Fort Lauderdale, FL | Office | 67 | % | |||||||||||||||||||||
59 |
Senior Loan | 11/23/2021 | 47,600 | 39,401 | 39,388 | +3.05 | % | +3.06 | % | 12/9/2026 | Dallas, TX | Multifamily | 69 | % | ||||||||||||||||||||||||
60 |
Senior Loan | 7/29/2021 | 47,500 | 47,500 | 47,497 | +3.10 | % | +3.10 | % | 8/9/2026 | Clearwater, FL | Multifamily | 79 | % | ||||||||||||||||||||||||
61 |
Senior Loan | 8/3/2021 | 46,500 | 46,500 | 46,490 | +3.10 | % | +3.11 | % | 8/9/2026 | San Antonio, TX | Multifamily | 72 | % | ||||||||||||||||||||||||
62 |
Senior Loan | 4/6/2022 | 46,500 | 44,000 | 43,976 | +3.50 | % | +3.52 | % | 4/9/2027 | Atlanta, GA | Multifamily | 79 | % | ||||||||||||||||||||||||
63 |
Senior Loan | 12/17/2021 | 46,100 | 36,500 | 36,499 | +4.30 | % | +4.40 | % | 1/9/2027 | Seattle, WA | Office | 53 | % | ||||||||||||||||||||||||
64 |
Senior Loan | 6/4/2021 | 45,000 | 45,000 | 44,981 | +3.20 | % | +3.21 | % | 6/9/2026 | Dallas, TX | Multifamily | 69 | % | ||||||||||||||||||||||||
65 |
Senior Loan | 1/28/2022 | 43,650 | 34,045 | 34,051 | +4.00 | % | +4.15 | % | 2/9/2027 | Milwaukee, WI | Office | 59 | % | ||||||||||||||||||||||||
66 |
Senior Loan | 7/28/2021 | 43,350 | 41,420 | 41,402 | +3.00 | % | +3.01 | % | 8/9/2026 | Sandy Springs, GA | Multifamily | 77 | % | ||||||||||||||||||||||||
67 |
Senior Loan | 8/19/2021 | 43,000 | 43,000 | 42,981 | +3.10 | % | +3.11 | % | 9/9/2026 | Omaha, NE | Multifamily | 75 | % | ||||||||||||||||||||||||
68 |
Senior Loan | 8/9/2021 | 42,660 | 37,695 | 37,684 | +3.05 | % | +3.06 | % | 8/9/2026 | Southaven, MS | Multifamily | 57 | % | ||||||||||||||||||||||||
69 |
Senior Loan | 11/1/2021 | 42,300 | 40,006 | 39,986 | +3.50 | % | +3.52 | % | 11/9/2026 | Doraville, GA | Multifamily | 82 | % | ||||||||||||||||||||||||
70 |
Senior Loan | 3/14/2022 | 42,000 | 40,200 | 40,206 | +3.50 | % | +3.67 | % | 4/9/2027 | Dallas, TX | Multifamily | 76 | % | ||||||||||||||||||||||||
71 |
Senior Loan | 8/25/2021 | 41,395 | 40,404 | 40,385 | +3.15 | % | +3.17 | % | 9/9/2026 | Cypress, TX | Multifamily | 69 | % | ||||||||||||||||||||||||
72 |
Senior Loan | 7/21/2021 | 41,300 | 38,954 | 38,943 | +2.80 | % | +2.81 | % | 8/9/2026 | Evanston, IL | Multifamily | 77 | % | ||||||||||||||||||||||||
73 |
Senior Loan | 10/28/2021 | 40,200 | 36,351 | 36,330 | +3.00 | % | +3.02 | % | 11/9/2026 | Dallas, TX | Multifamily | 74 | % | ||||||||||||||||||||||||
74 |
Senior Loan | 4/27/2021 | 39,050 | 35,177 | 35,167 | +3.15 | % | +3.16 | % | 5/9/2026 | Jamaica, NY | Industrial | 61 | % | ||||||||||||||||||||||||
75 |
Senior Loan | 8/31/2021 | 38,700 | 35,207 | 35,188 | +3.10 | % | +3.10 | % | 9/9/2026 | Colorado Springs, CO | Multifamily | 68 | % | ||||||||||||||||||||||||
76 |
Senior Loan | 6/24/2021 | 38,600 | 36,000 | 35,983 | +3.75 | % | +3.77 | % | 7/9/2026 | Austin, TX | Multifamily | 76 | % | ||||||||||||||||||||||||
77 |
Senior Loan | 8/3/2021 | 38,500 | 38,500 | 38,490 | +3.10 | % | +3.11 | % | 8/9/2026 | San Antonio, TX | Multifamily | 72 | % | ||||||||||||||||||||||||
78 |
Senior Loan | 11/30/2021 | 38,310 | 34,418 | 34,468 | +4.45 | % | +4.70 | % | 12/9/2026 | Memphis, TN | Office | 70 | % | ||||||||||||||||||||||||
79 |
Senior Loan | 4/9/2019 | 38,000 | 38,000 | 37,998 | +3.75 | % | +3.75 | % | 4/9/2024 | New York City, NY | Mixed Use | 75 | % | ||||||||||||||||||||||||
80 |
Senior Loan | 11/4/2021 | 37,300 | 35,920 | 35,920 | +3.35 | % | +3.85 | % | 11/1/2024 | Boca Raton, FL | Multifamily | 81 | % | ||||||||||||||||||||||||
81 |
Senior Loan | 4/29/2022 | 37,136 | 34,136 | 34,126 | +3.75 | % | +3.85 | % | 5/9/2027 | Euless, TX | Multifamily | 80 | % | ||||||||||||||||||||||||
82 |
Senior Loan | 11/5/2021 | 36,325 | 32,675 | 32,654 | +3.10 | % | +3.12 | % | 11/9/2026 | Mesquite, TX | Multifamily | 73 | % | ||||||||||||||||||||||||
83 |
Senior Loan | 12/21/2021 | 36,000 | 36,000 | 35,979 | +3.45 | % | +3.47 | % | 1/9/2027 | Hackensack, NJ | Multifamily | 68 | % | ||||||||||||||||||||||||
84 |
Senior Loan | 1/7/2022 | 36,000 | 36,000 | 36,000 | +3.80 | % | +3.80 | % | 1/9/2027 | Jupiter, FL | Office | 72 | % | ||||||||||||||||||||||||
85 |
Senior Loan | 3/29/2021 | 35,880 | 33,939 | 33,923 | +3.60 | % | +3.60 | % | 4/9/2026 | Arlington, TX | Multifamily | 80 | % | ||||||||||||||||||||||||
86 |
Senior Loan | 5/28/2021 | 35,785 | 31,085 | 31,068 | +5.00 | % | +5.02 | % | 6/9/2026 | Austin, TX | Office | 57 | % | ||||||||||||||||||||||||
87 |
Senior Loan | 2/27/2020 | 35,641 | 33,521 | 33,524 | +3.15 | % | +3.15 | % | 3/9/2025 | Various, SC | Industrial | 72 | % | ||||||||||||||||||||||||
88 |
Senior Loan | 6/22/2021 | 34,500 | 31,328 | 31,317 | +3.60 | % | +3.60 | % | 7/9/2026 | Tallahassee, FL | Multifamily | 74 | % | ||||||||||||||||||||||||
89 |
Senior Loan | 12/3/2021 | 34,327 | 34,327 | 34,318 | +3.45 | % | +3.46 | % | 12/9/2026 | Various, NY | Self Storage | 63 | % | ||||||||||||||||||||||||
90 |
Senior Loan | 12/16/2021 | 33,000 | 30,796 | 30,775 | +3.55 | % | +3.57 | % | 1/9/2027 | Fort Worth, TX | Multifamily | 72 | % | ||||||||||||||||||||||||
91 |
Senior Loan | 11/23/2021 | 32,000 | 26,379 | 26,367 | +3.05 | % | +3.07 | % | 12/9/2026 | Dallas, TX | Multifamily | 69 | % | ||||||||||||||||||||||||
92 |
Senior Loan | 3/11/2021 | 32,000 | 30,000 | 29,991 | +4.50 | % | +4.51 | % | 3/9/2026 | Colleyville, TX | Retail | 58 | % | ||||||||||||||||||||||||
93 |
Senior Loan | 4/27/2022 | 31,800 | 22,800 | 22,786 | +4.30 | % | +4.32 | % | 5/9/2027 | Morrow, GA | Industrial | 62 | % | ||||||||||||||||||||||||
94 |
Senior Loan | 1/28/2022 | 31,229 | 31,229 | 31,233 | +3.70 | % | +3.81 | % | 9/9/2026 | Dallas, TX | Multifamily | 82 | % | ||||||||||||||||||||||||
95 |
Senior Loan | 12/29/2020 | 31,128 | 28,191 | 28,344 | +3.75 | % | +3.93 | % | 1/9/2026 | Brooklyn, NY | Multifamily | 60 | % | ||||||||||||||||||||||||
96 |
Senior Loan | 5/4/2021 | 30,000 | 19,659 | 19,652 | +5.55 | % | +5.56 | % | 5/9/2026 | Richardson, TX | Office | 65 | % | ||||||||||||||||||||||||
97 |
Senior Loan | 6/28/2019 | 28,500 | 28,500 | 28,641 | +5.35 | % | +5.52 | % | 7/9/2024 | Davis, CA | Hospitality | 72 | % | ||||||||||||||||||||||||
98 |
Senior Loan | 12/18/2020 | 28,440 | 24,738 | 24,735 | +4.50 | % | +4.50 | % | 1/9/2026 | Rockville, MD | Office | 69 | % | ||||||||||||||||||||||||
99 |
Senior Loan | 12/15/2021 | 28,400 | 26,199 | 26,187 | +3.30 | % | +3.32 | % | 12/9/2026 | Arlington, TX | Multifamily | 79 | % | ||||||||||||||||||||||||
100 |
Senior Loan | 11/18/2021 | 27,387 | 27,387 | 27,375 | +3.60 | % | +3.61 | % | 12/9/2026 | Brooklyn, NY | Self Storage | 70 | % | ||||||||||||||||||||||||
101 |
Senior Loan | 1/20/2021 | 25,250 | 22,563 | 22,551 | +4.75 | % | +4.75 | % | 2/9/2026 | Laguna Hills, CA | Office | 63 | % | ||||||||||||||||||||||||
102 |
Senior Loan | 3/31/2021 | 25,250 | 25,250 | 25,238 | +3.20 | % | +3.22 | % | 4/9/2026 | Tempe, AZ | Multifamily | 77 | % | ||||||||||||||||||||||||
103 |
Senior Loan | 6/25/2021 | 25,000 | 23,898 | 23,887 | +3.05 | % | +3.06 | % | 7/9/2026 | Austin, TX | Multifamily | 68 | % | ||||||||||||||||||||||||
104 |
Senior Loan | 5/28/2021 | 24,700 | 23,087 | 23,077 | +3.50 | % | +3.52 | % | 6/9/2026 | Jacksonville, FL | Industrial | 61 | % | ||||||||||||||||||||||||
105 |
Senior Loan | 1/28/2022 | 24,489 | 24,489 | 24,490 | +3.70 | % | +3.81 | % | 9/9/2026 | Mesquite, TX | Multifamily | 78 | % | ||||||||||||||||||||||||
106 |
Senior Loan | 7/18/2018 | 22,650 | 22,650 | 22,712 | +5.25 | % | +5.37 | % | 8/9/2023 | Gaithersburg, MD | Hospitality | 80 | % | ||||||||||||||||||||||||
107 |
Senior Loan | 12/10/2020 | 22,300 | 17,183 | 17,172 | +5.25 | % | +5.25 | % | 1/9/2026 | Fox Hills, CA | Office | 55 | % | ||||||||||||||||||||||||
108 |
Senior Loan | 1/28/2022 | 22,149 | 22,149 | 22,149 | +3.70 | % | +3.81 | % | 9/9/2026 | Dallas, TX | Multifamily | 85 | % | ||||||||||||||||||||||||
109 |
Senior Loan | 8/26/2021 | 21,805 | 20,009 | 19,990 | +3.10 | % | +3.13 | % | 9/9/2026 | Seattle, WA | Multifamily | 69 | % | ||||||||||||||||||||||||
110 |
Senior Loan | 7/13/2021 | 21,350 | 21,350 | 21,332 | +3.40 | % | +3.43 | % | 8/9/2026 | Grand Prairie, TX | Multifamily | 72 | % | ||||||||||||||||||||||||
111 |
Senior Loan | 7/20/2021 | 21,136 | 18,259 | 18,257 | +3.25 | % | +3.36 | % | 8/9/2026 | Las Vegas, NV | Multifamily | 72 | % | ||||||||||||||||||||||||
112 |
Senior Loan | 8/6/2021 | 20,000 | 20,000 | 20,013 | +3.10 | % | +3.25 | % | 8/9/2026 | Sandy Springs, GA | Multifamily | 74 | % | ||||||||||||||||||||||||
113 |
Senior Loan | 5/10/2021 | 19,200 | 17,776 | 17,760 | +3.50 | % | +3.53 | % | 5/9/2026 | University City, PA | Multifamily | 70 | % | ||||||||||||||||||||||||
114 |
Senior Loan | 12/3/2021 | 18,828 | 18,828 | 18,820 | +3.45 | % | +3.46 | % | 12/9/2026 | Various, NY | Self Storage | 63 | % | ||||||||||||||||||||||||
115 |
Senior Loan | 2/26/2021 | 18,589 | 17,491 | 17,482 | +3.25 | % | +3.25 | % | 3/9/2026 | Newark, NJ | Industrial | 57 | % | ||||||||||||||||||||||||
116 |
Mezz Loan | 2/21/2020 | 18,102 | 18,102 | 18,101 | 10.00 | % | 10.00 | % | 3/1/2030 | Various, SC | Industrial | 70 | % | ||||||||||||||||||||||||
117 |
Senior Loan | 2/19/2020 | 18,000 | 14,400 | 14,406 | +3.50 | % | +3.49 | % | 3/9/2025 | Los Angeles, CA | Mixed Use | 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) |
||||||||||||||||||||||||||||||||
118 |
Senior Loan | 6/16/2021 | $ | 17,500 | $ | 16,376 | $ | 16,366 | +3.25 | % | +3.25 | % | 7/9/2026 | Everett, WA | Multifamily | 69 | % | |||||||||||||||||||||||||
119 |
Senior Loan | 10/22/2019 | 17,500 | 15,643 | 15,730 | +4.50 | % | +4.66 | % | 11/9/2024 | Oakland, CA | Mixed Use | 70 | % | ||||||||||||||||||||||||||||
120 |
Senior Loan | 9/23/2021 | 16,300 | 14,828 | 14,844 | +4.25 | % | +4.56 | % | 9/9/2026 | Various, NJ | Multifamily | 77 | % | ||||||||||||||||||||||||||||
121 |
Senior Loan | 1/28/2021 | 16,100 | 16,100 | 16,127 | +4.50 | % | +4.63 | % | 2/9/2026 | Philadelphia, PA | Self Storage | 79 | % | ||||||||||||||||||||||||||||
122 |
Mezz Loan | 6/8/2022 | 15,840 | 15,840 | 15,842 | +7.50 | % | +7.75 | % | 6/9/2027 | New York, NY | Multifamily | 81 | % | ||||||||||||||||||||||||||||
123 |
Senior Loan | 6/16/2021 | 15,406 | 14,780 | 14,770 | +3.25 | % | +3.25 | % | 7/9/2026 | Everett, WA | Multifamily | 71 | % | ||||||||||||||||||||||||||||
124 |
Mezz Loan | 2/14/2020 | 15,000 | 15,000 | 15,000 | +7.50 | % | +7.50 | % | 12/5/2026 | Queens, NY | Multifamily | 75 | % | ||||||||||||||||||||||||||||
125 |
Senior Loan | 11/17/2020 | 14,550 | 13,548 | 13,543 | +4.00 | % | +4.00 | % | 12/9/2025 | Vista, CA | Industrial | 54 | % | ||||||||||||||||||||||||||||
126 |
Senior Loan | 3/25/2021 | 13,405 | 12,019 | 12,024 | +3.25 | % | +3.36 | % | 4/9/2026 | Lithonia, GA | Multifamily | 67 | % | ||||||||||||||||||||||||||||
127 |
Senior Loan | 3/19/2021 | 12,718 | 12,718 | 12,736 | +3.95 | % | +4.14 | % | 4/9/2026 | Brooklyn, NY | Multifamily | 85 | % | ||||||||||||||||||||||||||||
128 |
Senior Loan | 1/28/2022 | 12,092 | 12,092 | 12,088 | +3.70 | % | +3.82 | % | 9/9/2026 | Duncanville, TX | Multifamily | 83 | % | ||||||||||||||||||||||||||||
129 |
Senior Loan | 3/7/2018 | 12,050 | 12,050 | 12,080 | +5.00 | % | +5.17 | % | 9/7/2022 | Las Vegas, NV | Hospitality | 71 | % | ||||||||||||||||||||||||||||
130 |
Senior Loan | 11/17/2020 | 11,010 | 10,636 | 10,631 | +4.00 | % | +4.02 | % | 12/9/2025 | Miramar, CA | Industrial | 65 | % | ||||||||||||||||||||||||||||
131 |
Senior Loan | 6/11/2018 | 8,000 | 8,000 | 8,040 | 4.50 | % | +4.61 | % | 3/9/2024 | Miami, FL | Retail | 68 | % | ||||||||||||||||||||||||||||
132 |
Senior Loan | 2/17/2021 | 7,000 | 7,000 | 7,010 | +3.85 | % | +4.04 | % | 3/9/2026 | Brooklyn, NY | Multifamily | 81 | % | ||||||||||||||||||||||||||||
133 |
Senior Loan | 6/11/2018 | 6,750 | 6,750 | 6,767 | +4.25 | % | +4.35 | % | 6/9/2023 | Miami, FL | Retail | 61 | % | ||||||||||||||||||||||||||||
134 |
Mezz Loan | 5/12/2022 | 5,785 | 5,785 | 5,785 | +10.50 | % | +10.50 | % | 5/9/2027 | Denver, CO | Multifamily | 86 | % | ||||||||||||||||||||||||||||
135 |
Mezz Loan | 4/6/2022 | 5,049 | 5,049 | 5,049 | +11.00 | % | +11.00 | % | 4/9/2027 | Atlanta, GA | Multifamily | 88 | % | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Total/Weighted Average |
|
$ | 7,150,123 | $ | 6,539,424 | $ | 6,538,370 | +3.82 | % | +3.87 | % | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
(1) | Date loan was originated or acquired by us, and the loan-to-value, |
(2) | The weighted-average cash coupon and all-in yield are expressed as a spread over the relevant floating benchmark rates, which include USD LIBOR and SOFR. In addition to cash coupon, all-in yield include accretion of discount (amortization of premium) and accrual of exit fees. |
(3) | Maximum maturity assumes all extension options are exercised by the borrower, however loans may be repaid prior to such date. |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||||||
Net interest income |
||||||||||||||||
Interest income |
$ | 68,877 | $ | 16,039 | $ | 114,861 | $ | 27,755 | ||||||||
Less: Interest expense |
(29,184 | ) | (4,981 | ) | (45,399 | ) | (7,810 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net interest income |
39,693 | 11,058 | 69,462 | 19,945 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Other expenses |
||||||||||||||||
Management and performance fees |
5,351 | 1,708 | 9,348 | 3,281 | ||||||||||||
General and administrative expenses |
5,783 | 1,394 | 9,326 | 2,799 | ||||||||||||
Less: Expense limitation |
— | — | — | (56 | ) | |||||||||||
Add: Expense recoupment to sponsor |
1,460 | 390 | 2,770 | 390 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net other expenses |
12,594 | 3,492 | 21,444 | 6,414 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Other income (loss) |
||||||||||||||||
Net change in unrealized gain (loss) on interest rate cap |
(1,449 | ) | — | (1,449 | ) | — | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total other income (loss) |
(1,449 | ) | — | (1,449 | ) | — | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income |
25,650 | 7,566 | 46,569 | 13,531 | ||||||||||||
Preferred stock dividends |
(4 | ) | (4 | ) | (8 | ) | (8 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income attributable to FS Credit Real Estate Income Trust, Inc. |
$ | 25,646 | $ | 7,562 | $ | 46,561 | $ | 13,523 | ||||||||
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||||||
Net income (GAAP) |
$ | 25,650 | $ | 7,566 | $ | 46,569 | $ | 13,531 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Funds from operations |
$ | 25,650 | $ | 7,566 | $ | 46,569 | $ | 13,531 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Adjustments to arrive at modified funds from operations: |
||||||||||||||||
Accretion of discount on mortgage-backed securities held-to-maturity |
(152) | (137) | (299) | (271) | ||||||||||||
Net unrealized loss on interest rate cap |
(1,449) | — | (1,449) | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Modified funds from operations |
$ | 24,049 | $ | 7,429 | $ | 44,821 | $ | 13,260 | ||||||||
|
|
|
|
|
|
|
|
• | Commercial real estate debt classified as held-for-investment sub-adviser, evaluates for impairment each loan classified as held-for-investment. |
• | Mortgage-backed securities are classified as held-to-maturity |
• | Mortgage-backed securities that we do not hold for the purpose of selling in the near-term or may dispose of prior to maturity, are classified as available-for-sale mid-point of the average bid and ask prices obtained from such sources. |
• | Investments in real estate will initially be valued at cost, which is expected to represent fair value at that time. FS Real Estate Advisor, with assistance from our sub-adviser, expects to receive an appraisal performed by an independent third-party appraisal firm on each property prior to or upon acquisition. Each property will then be valued by an independent third-party appraisal firm no less frequently than annually. FS Real Estate Advisor will update the valuations of our properties for each month in which we do not receive an appraisal report from a third-party appraisal firm. Such monthly update valuations will be based on the then most recent appraisals provided by a third-party appraisal firm, current market data and other relevant information. |
• | Liabilities include repurchase agreements payable, credit facility payable, collateralized loan obligations, fees payable to FS Real Estate Advisor and the dealer manager, accounts payable, accrued operating expenses, any portfolio-level credit facilities, and other liabilities. All liabilities are valued at amounts payable, net of unamortized premium or discount, and net of unamortized debt issuance costs. Liabilities related to stockholder servicing fees allocable to Class T, Class S, Class D and Class M shares are only included in the NAV calculation for those classes. Liabilities related to advisory fees allocable to Class T, Class S, Class D, Class M, Class I and Class Y shares are only included in the NAV calculation for those classes. |
Components of NAV |
June 30, 2022 |
|||
Cash and cash equivalents |
$ | 75,659 | ||
Restricted cash |
19,111 | |||
Loans receivable |
6,538,370 | |||
Mortgage-backed securities held-to-maturity |
78,942 | |||
Mortgage-backed securities available-for-sale, |
153,274 | |||
Interest receivable |
14,904 | |||
Deferred financing costs |
647 | |||
Investment in real estate |
160,711 | |||
Receivable for investment sold and repaid |
52,959 | |||
Other assets |
42,284 | |||
Repurchase agreements payable, net of deferred financing costs |
(1,175,651 | ) | ||
Credit facility payable |
(692,472 | ) | ||
Collateralized loan obligations, net of deferred financing costs |
(3,193,515 | ) | ||
Mortgage note, net of deferred financing costs |
(122,568 | ) | ||
Accrued servicing fees (1) |
(831 | ) | ||
Other liabilities |
(38,894 | ) | ||
|
|
|||
Net asset value |
$ | 1,912,930 | ||
|
|
(1) | See Reconciliation of Stockholders’ Equity to NAV below for an explanation of the differences between the stockholder servicing fees accrued for purposes of NAV and the amount accrued under GAAP. |
NAV per Share |
Class F |
Class Y |
Class T |
Class S |
Class D |
Class M |
Class I |
Total |
||||||||||||||||||||||||
Net asset value |
$ | 22,599 | $ | 22,082 | $ | 37,627 | $ | 1,122,659 | $ | 17,168 | $ | 92,705 | $ | 598,090 | $ | 1,912,930 | ||||||||||||||||
Number of outstanding shares |
904,792 | 906,648 | 1,508,682 | 44,602,788 | 680,347 | 3,701,528 | 24,516,086 | 76,820,871 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
NAV per share as of June 30, 2022 |
$ | 24.9767 | $ | 24.3557 | $ | 24.9404 | $ | 25.1698 | $ | 24.9734 | $ | 25.0450 | $ | 24.4031 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Stockholders’ Equity to NAV |
June 30, 2022 |
|||
Total stockholders’ equity under GAAP |
$ | 1,821,230 | ||
Preferred stock |
(125 | ) | ||
|
|
|||
Total stockholders’ equity, net of preferred stock, under GAAP |
1,821,105 | |||
Adjustments: |
||||
Accrued stockholder servicing fees (1) |
90,376 | |||
Net change in unrealized (gain) loss on interest rate cap |
1,449 | |||
|
|
|||
Net asset value |
$ | 1,912,930 | ||
|
|
(1) | Stockholder servicing fees only apply to Class T, Class S, Class D and Class M shares. Under GAAP, we accrue future stockholder servicing fees in an amount equal to our best estimate of fees payable to FS Investment Solutions at the time such shares are sold. For purposes of NAV, we recognize 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. |
• | a stockholder would be able to realize the NAV per share for the class of shares a stockholder owns if the stockholder attempts to sell its shares; |
• | a stockholder would ultimately realize distributions per share equal to per share NAV upon a liquidation of our assets and settlement of our liabilities or upon any other liquidity event; |
• | shares of our common stock would trade at per share NAV on a national securities exchange; |
• | a third party in an arm’s-length transaction would offer to purchase all or substantially all of our shares of common stock at NAV; |
• | NAV would equate to a market price for an open-end real estate fund; and |
• | NAV would represent the fair value of our assets less liabilities under GAAP. |
Six Months Ended June 30, 2022 |
||||||||
2022 |
2021 |
|||||||
Cash flows from operating activities |
$ | 48,925 | $ | 33,038 | ||||
Cash flows used in investing activities |
(3,087,732 | ) | (941,381 | ) | ||||
Cash flows from financing activities |
3,047,769 | 922,471 | ||||||
|
|
|
|
|||||
Net increase (decrease) in cash and cash equivalents and restricted cash |
$ | 8,962 | $ | 14,128 | ||||
|
|
|
|
Loan Risk Rating |
Summary Description | |
1 | Very Low Risk | |
2 | Low Risk | |
3 | Medium Risk | |
4 | High Risk/Potential for Loss: A loan that has a risk of realizing a principal 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 |
Item 3. |
Quantitative and Qualitative Disclosures About Market Risk. |
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) |
$ | (32,026 | ) | $ | (25,628 | ) | $ | (6,398 | ) | (3.1 |
)% | |||||
Down 25 basis points (1) |
$ | (16,157 | ) | $ | (12,839 | ) | $ | (3,318 | ) | (1.6 |
)% | |||||
No change |
— | — | — | — | ||||||||||||
Up 25 basis points |
$ | 16,305 | $ | 12,839 | $ | 3,466 | 1.7 |
% | ||||||||
Up 50 basis points |
$ | 32,682 | $ | 25,678 | $ | 7,004 | 3.4 |
% |
(1) | Decrease in rates assumes the applicable benchmark rate does not decrease below 0%. |
Item 4. |
Controls and Procedures. |
Item 1. |
Legal Proceedings. |
Item 1A. |
Risk Factors. |
Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds. |
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) |
||||||||||||
April 1 - April 30, 2022 |
202,898 | $ | 25.10 | 202,898 | — | |||||||||||
May 1 - May 31, 2022 |
465,115 | $ | 25.00 | 465,115 | — | |||||||||||
June 1 - June 30, 2022 |
637,024 | $ | 24.92 | 637,024 | — | |||||||||||
|
|
|
|
|
|
|||||||||||
Total |
1,305,037 | 1,305,037 | — | |||||||||||||
|
|
|
|
|
|
(1) | Repurchases are limited as described above. |
Item 3. Defaults |
upon Senior Securities. |
Item 4. |
Mine Safety Disclosures. |
Item 5. |
Other Information. |
Item 6. |
Exhibits. |
31.2* | Certification of Chief Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1+ | Certification of Chief Executive Officer and Chief Financial Officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
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* | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |
104* | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
* | Filed herewith |
+ | This exhibit shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that Section. Such exhibit shall not be deemed incorporated into any filing under the Securities Act or the Exchange Act. |
FS CREDIT REAL ESTATE INCOME TRUST, INC. | ||
By: | /s/ MICHAEL C. FORMAN | |
Michael C. Forman Chief Executive Officer (Principal Executive Officer) | ||
By: | /s/ EDWARD T. GALLIVAN, JR. | |
Edward T. Gallivan, Jr. Chief Financial Officer (Principal Accounting and Financial Officer) |
Exhibit 31.1
CERTIFICATION
PURSUANT TO 17 CFR 240.13a-14
PROMULGATED UNDER
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Michael C. Forman, certify that:
1. | I have reviewed this Quarterly Report on Form 10-Q of FS Credit Real Estate Income Trust, Inc. |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: August 15, 2022
/s/ MICHAEL C. FORMAN |
Michael C. Forman |
Chief Executive Officer |
Exhibit 31.2
CERTIFICATION
PURSUANT TO 17 CFR 240.13a-14
PROMULGATED UNDER
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Edward T. Gallivan, Jr., certify that:
1. | I have reviewed this Quarterly Report on Form 10-Q of FS Credit Real Estate Income Trust, Inc. |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: August 15, 2022
/s/ EDWARD T. GALLIVAN, JR. |
Edward T. Gallivan, Jr. |
Chief Financial Officer |
Exhibit 32.1
CERTIFICATION
PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report on Form 10-Q of FS Credit Real Estate Income Trust, Inc. (the Company) for the quarter ended June 30, 2022, as filed with the Securities and Exchange Commission on the date hereof (the Form 10-Q), Michael C. Forman, as Chief Executive Officer of the Company, and Edward T. Gallivan, Jr., as Chief Financial Officer of the Company, each hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to his knowledge:
| the Form 10-Q of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and |
| the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Dated: August 15, 2022
/s/ MICHAEL C. FORMAN |
Michael C. Forman |
Chief Executive Officer |
/s/ EDWARD T. GALLIVAN, JR. |
Edward T. Gallivan, Jr. |
Chief Financial Officer |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
||
---|---|---|---|---|
Deferred financing costs | $ 647 | $ 658 | ||
Preferred stock, par value | $ 0.01 | $ 0.01 | ||
Preferred stock, shares authorized | 50,000,000 | 50,000,000 | ||
Preferred stock, shares issued | 125 | 125 | ||
Preferred stock, shares outstanding | 125 | 125 | ||
VIE Assets | [1] | $ 7,135,412 | $ 4,024,394 | |
VIE Liabilities | [1] | 5,314,182 | 3,051,054 | |
Variable Interest Entity, Primary Beneficiary [Member] | ||||
VIE Assets | 4,033,871 | 2,347,510 | ||
VIE Liabilities | 3,197,715 | 1,887,944 | ||
Repurchase agreements payable [Member] | ||||
Deferred financing costs | 3,278 | 1,958 | ||
Collateralized Loan Obligations [Member] | ||||
Deferred financing costs | 27,057 | 16,701 | ||
Credit facilities payable [Member] | ||||
Deferred financing costs | 8,666 | 2,230 | ||
Mortgage note payable [Member] | ||||
Deferred financing costs | $ 2,132 | $ 0 | ||
Common Class F [Member] | ||||
Common stock, par value | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized | 125,000,000 | 125,000,000 | ||
Common stock, shares issued | 904,792 | 902,878 | ||
Common stock, shares outstanding | 904,792 | 902,878 | ||
Common Class Y [Member] | ||||
Common stock, par value | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized | 125,000,000 | 125,000,000 | ||
Common stock, shares issued | 906,648 | 906,648 | ||
Common stock, shares outstanding | 906,648 | 906,648 | ||
Common Class T [Member] | ||||
Common stock, par value | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized | 125,000,000 | 125,000,000 | ||
Common stock, shares issued | 1,508,682 | 1,407,377 | ||
Common stock, shares outstanding | 1,508,682 | 1,407,377 | ||
Common Class S [Member] | ||||
Common stock, par value | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized | 125,000,000 | 125,000,000 | ||
Common stock, shares issued | 44,602,788 | 22,823,721 | ||
Common stock, shares outstanding | 44,602,788 | 22,823,721 | ||
Common Class D [Member] | ||||
Common stock, par value | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized | 125,000,000 | 125,000,000 | ||
Common stock, shares issued | 680,347 | 642,162 | ||
Common stock, shares outstanding | 680,347 | 642,162 | ||
Common Class M [Member] | ||||
Common stock, par value | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized | 125,000,000 | 125,000,000 | ||
Common stock, shares issued | 3,701,528 | 2,876,736 | ||
Common stock, shares outstanding | 3,701,528 | 2,876,736 | ||
Common Class I [Member] | ||||
Common stock, par value | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized | 300,000,000 | 300,000,000 | ||
Common stock, shares issued | 24,516,086 | 11,366,687 | ||
Common stock, shares outstanding | 24,516,086 | 11,366,687 | ||
|
Unaudited Consolidated Statements of Operations - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Net interest income | ||||
Interest income | $ 68,877 | $ 16,039 | $ 114,861 | $ 27,755 |
Less: Interest expense | (29,184) | (4,981) | (45,399) | (7,810) |
Net interest income | 39,693 | 11,058 | 69,462 | 19,945 |
Other expenses | ||||
Management and performance fees | 5,351 | 1,708 | 9,348 | 3,281 |
General and administrative expenses | 5,783 | 1,394 | 9,326 | 2,799 |
Less: Expense limitation | (56) | |||
Add: Expense recoupment to sponsor | 1,460 | 390 | 2,770 | 390 |
Net other expenses | 12,594 | 3,492 | 21,444 | 6,414 |
Other income (loss) | ||||
Net change in unrealized gain (loss) on interest rate cap | (1,449) | (1,449) | ||
Total other income (loss) | (1,449) | (1,449) | ||
Net income | 25,650 | 7,566 | 46,569 | 13,531 |
Preferred stock dividends | (4) | (4) | (8) | (8) |
Net income attributable to FS Credit Real Estate Income Trust, Inc. | $ 25,646 | $ 7,562 | $ 46,561 | $ 13,523 |
Per share information—basic and diluted | ||||
Net income per share of common stock (earnings per share), Basic | $ 0.36 | $ 0.41 | $ 0.75 | $ 0.82 |
Net income per share of common stock (earnings per share, Diluted | $ 0.36 | $ 0.41 | $ 0.75 | $ 0.82 |
Weighted average common stock outstanding, Basic | 71,346,254 | 18,511,402 | 61,767,077 | 16,566,229 |
Weighted average common stock outstanding, Diluted | 71,346,254 | 18,511,402 | 61,767,077 | 16,566,229 |
Unaudited Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 25,650 | $ 7,566 | $ 46,569 | $ 13,531 |
Other comprehensive income | ||||
Net change in unrealized gain (loss) on mortgage-backed securities available-for-sale | (2,867) | 80 | (3,278) | 80 |
Total other comprehensive income (loss) | (2,867) | 80 | (3,278) | 80 |
Comprehensive income | $ 22,783 | $ 7,646 | $ 43,291 | $ 13,611 |
Unaudited Consolidated Statements of Changes in Equity - USD ($) $ in Thousands |
Total |
Common Class Y [Member] |
Common Class T [Member] |
Common Class S [Member] |
Common Class D [Member] |
Common Class M [Member] |
Common Class I [Member] |
Common Stock [Member] |
Common Stock [Member]
Common Class F [Member]
|
Common Stock [Member]
Common Class F [Member]
Par Value [Member]
|
Common Stock [Member]
Common Class Y [Member]
|
Common Stock [Member]
Common Class Y [Member]
Par Value [Member]
|
Common Stock [Member]
Common Class T [Member]
|
Common Stock [Member]
Common Class T [Member]
Par Value [Member]
|
Common Stock [Member]
Common Class S [Member]
|
Common Stock [Member]
Common Class S [Member]
Par Value [Member]
|
Common Stock [Member]
Common Class D [Member]
|
Common Stock [Member]
Common Class D [Member]
Par Value [Member]
|
Common Stock [Member]
Common Class M [Member]
|
Common Stock [Member]
Common Class M [Member]
Par Value [Member]
|
Common Stock [Member]
Common Class I [Member]
|
Common Stock [Member]
Common Class I [Member]
Par Value [Member]
|
Additional Paid-In Capital [Member] |
Accumulated Other Comprehensive Income (Loss) [Member] |
[1] | Retained Earnings (Accumulated Deficit) [Member] |
||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Balance at beginning of period, amount at Dec. 31, 2020 | $ 305,712 | $ 303,827 | $ 22,378 | $ 9 | $ 3,449 | $ 1 | $ 29,971 | $ 12 | $ 134,705 | $ 58 | $ 13,573 | $ 5 | $ 46,154 | $ 20 | $ 53,597 | $ 22 | $ 303,783 | $ 1,802 | ||||||||||
Common stock issued | 187,917 | $ 9 | $ 1 | $ 42 | $ 1 | $ 5 | $ 18 | 187,917 | 0 | 20,749 | 1,690 | 106,853 | 2,282 | 10,996 | 45,347 | 187,841 | ||||||||||||
Distributions declared | (13,511) | (13,511) | ||||||||||||||||||||||||||
Proceeds from distribution reinvestment plan | 5,154 | 1 | 1 | 5,154 | 392 | 0 | 505 | 2,705 | 157 | 590 | 805 | 5,152 | ||||||||||||||||
Redemptions of common stock | (5,233) | (1) | (1) | (5,233) | (258) | (1,827) | (503) | (922) | 0 | (1,072) | (651) | (5,231) | ||||||||||||||||
Stockholder servicing fees | (9,476) | (9,476) | ||||||||||||||||||||||||||
Offering costs | (679) | (679) | ||||||||||||||||||||||||||
Net income | 13,531 | 13,531 | ||||||||||||||||||||||||||
Dividends on preferred stock | (8) | (8) | ||||||||||||||||||||||||||
Other comprehensive income (loss) | 80 | $ 80 | ||||||||||||||||||||||||||
Balance at end of period, amount at Jun. 30, 2021 | 483,487 | 482,189 | 22,352 | 9 | 22,371 | 9 | 31,514 | 13 | 234,624 | 101 | 14,929 | 6 | 55,941 | 24 | 100,458 | 41 | 481,390 | 80 | 1,814 | |||||||||
Balance at beginning of period, amount at Mar. 31, 2021 | 363,335 | 9 | 1 | 13 | 72 | 5 | 22 | 30 | 361,358 | 1,825 | ||||||||||||||||||
Common stock issued | 125,472 | 9 | 28 | 1 | 3 | 10 | 125,421 | |||||||||||||||||||||
Distributions declared | (7,573) | (7,573) | ||||||||||||||||||||||||||
Proceeds from distribution reinvestment plan | 2,912 | 1 | 1 | 2,910 | ||||||||||||||||||||||||
Redemptions of common stock | (1,792) | $ (1) | (1) | (1,790) | ||||||||||||||||||||||||
Stockholder servicing fees | (6,146) | (6,146) | ||||||||||||||||||||||||||
Offering costs | (363) | (363) | ||||||||||||||||||||||||||
Net income | 7,566 | 7,566 | ||||||||||||||||||||||||||
Dividends on preferred stock | (4) | (4) | ||||||||||||||||||||||||||
Other comprehensive income (loss) | 80 | 80 | ||||||||||||||||||||||||||
Balance at end of period, amount at Jun. 30, 2021 | 483,487 | 482,189 | 22,352 | 9 | 22,371 | 9 | 31,514 | 13 | 234,624 | 101 | 14,929 | 6 | 55,941 | 24 | 100,458 | 41 | 481,390 | 80 | 1,814 | |||||||||
Balance at beginning of period, amount 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 | |||||||||
Common stock issued | 930,144 | 1 | 226 | $ 1 | 9 | 136 | 930,144 | 0 | 0 | 2,846 | 567,895 | 1,501 | 26,392 | 331,510 | 929,771 | |||||||||||||
Distributions declared | (46,227) | (46,227) | ||||||||||||||||||||||||||
Proceeds from distribution reinvestment plan | 21,895 | 5 | 3 | 21,895 | 366 | 0 | 515 | 13,021 | 182 | 1,295 | 6,516 | 21,887 | ||||||||||||||||
Redemptions of common stock | (56,771) | (13) | (1) | (8) | (56,771) | (318) | 0 | (787) | (31,901) | (462) | (3,307) | (19,996) | (56,749) | |||||||||||||||
Stockholder servicing fees | (46,428) | (46,428) | ||||||||||||||||||||||||||
Offering costs | (6,999) | (6,999) | ||||||||||||||||||||||||||
Performance contingent rights issued | 8,993 | 8,993 | ||||||||||||||||||||||||||
Net income | 46,569 | 46,569 | ||||||||||||||||||||||||||
Dividends on preferred stock | (8) | (8) | ||||||||||||||||||||||||||
Other comprehensive income (loss) | (3,278) | (3,278) | ||||||||||||||||||||||||||
Balance at end of period, amount at Jun. 30, 2022 | 1,821,230 | 1,820,150 | 22,186 | 9 | 22,371 | 9 | 36,279 | 15 | 1,035,353 | 446 | 16,886 | 7 | 86,538 | 37 | 600,537 | 245 | 1,820,033 | (3,192) | 3,621 | |||||||||
Balance at beginning of period, amount at Mar. 31, 2022 | 1,388,142 | 9 | 9 | 14 | 331 | 7 | 32 | 182 | 1,383,218 | (325) | 4,665 | |||||||||||||||||
Common stock issued | 480,121 | $ 1 | 121 | 6 | 64 | 479,929 | ||||||||||||||||||||||
Distributions declared | (26,690) | (26,690) | ||||||||||||||||||||||||||
Proceeds from distribution reinvestment plan | 12,521 | 3 | 2 | 12,516 | ||||||||||||||||||||||||
Redemptions of common stock | (32,597) | $ (9) | $ (1) | $ (3) | (32,584) | |||||||||||||||||||||||
Stockholder servicing fees | (24,799) | (24,799) | ||||||||||||||||||||||||||
Offering costs | (3,598) | (3,598) | ||||||||||||||||||||||||||
Performance contingent rights issued | 5,351 | 5,351 | ||||||||||||||||||||||||||
Net income | 25,650 | 25,650 | ||||||||||||||||||||||||||
Dividends on preferred stock | (4) | (4) | ||||||||||||||||||||||||||
Other comprehensive income (loss) | (2,867) | (2,867) | ||||||||||||||||||||||||||
Balance at end of period, amount at Jun. 30, 2022 | $ 1,821,230 | $ 1,820,150 | $ 22,186 | $ 9 | $ 22,371 | $ 9 | $ 36,279 | $ 15 | $ 1,035,353 | $ 446 | $ 16,886 | $ 7 | $ 86,538 | $ 37 | $ 600,537 | $ 245 | $ 1,820,033 | $ (3,192) | $ 3,621 | |||||||||
|
Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
|||
Cash flows from operating activities | ||||
Net income | $ 46,569 | $ 13,531 | ||
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ||||
Performance contingent rights issued | 8,993 | |||
Amortization of deferred fees on loans and debt securities | (2,020) | (731) | ||
Amortization of deferred financing costs and discount | 4,268 | 1,503 | ||
Net change in unrealized loss on interest rate cap | 1,449 | |||
Changes in assets and liabilities | ||||
Reimbursement due from sponsor | 444 | |||
Interest receivable | (8,043) | (873) | ||
Other assets | (8,999) | 15,876 | ||
Due to related party | 1,397 | 8,866 | ||
Interest payable | 5,331 | 463 | ||
Other liabilities | (20) | (6,041) | ||
Net cash provided by (used in) operating activities | [1] | 48,925 | 33,038 | |
Cash flows used in investing activities | ||||
Origination and fundings of loans receivable, held-for-investment | (3,084,586) | (1,018,208) | ||
Principal collections from loans receivable, held-for-investment | 342,702 | 96,067 | ||
Exit and extension fees received on loans receivable, held-for-investment | 769 | 335 | ||
Purchases of mortgage-backed securities available-for-sale | (112,073) | (19,575) | ||
Principal repayments of mortgage-backed securities available-for-sale | 62 | |||
Purchases of mortgage-backed securities held-to-maturity | (40,804) | |||
Acquisition of real estate | (193,802) | |||
Net cash provided by (used in) investing activities | (3,087,732) | (941,381) | ||
Cash flows from financing activities | ||||
Issuance of common stock | 930,144 | 187,917 | ||
Redemptions of common stock | (41,748) | (6,210) | ||
Stockholder distributions paid | (22,216) | (7,816) | ||
Stockholder servicing fees | (3,674) | (994) | ||
Offering costs paid | (8,334) | (679) | ||
Borrowing under mortgage note payable | 124,700 | |||
Borrowings under repurchase agreements | 1,586,790 | 690,482 | ||
Repayments under repurchase agreements | (1,312,829) | (612,790) | ||
Borrowings under credit facilities | 879,823 | 156,000 | ||
Repayments under credit facilities | (377,875) | (121,000) | ||
Proceeds from issuance of collateralized loan obligations | 1,407,120 | 646,935 | ||
Repayment of collateralized loan obligations | (89,631) | |||
Payment of deferred financing costs | (24,501) | (9,374) | ||
Net cash provided by (used in) financing activities | 3,047,769 | 922,471 | ||
Total increase (decrease) in cash, cash equivalents and restricted cash | 8,962 | 14,128 | ||
Cash, cash equivalents and restricted cash at beginning of period | 85,808 | 17,874 | ||
Cash, cash equivalents and restricted cash at end of period | 94,770 | 32,002 | ||
Supplemental disclosure of cash flow information and non-cash financial activities | ||||
Payments of interest | 35,800 | 5,844 | ||
Accrued stockholder servicing fee | 42,754 | 8,482 | ||
Distributions payable | 5,059 | 1,663 | ||
Reinvestment of stockholder distributions | 21,895 | 5,154 | ||
Payable for shares repurchased | 19,250 | 553 | ||
Loan principal payments held by servicer | $ 52,959 | |||
Loan transferred from loans receivable, held-for-investment to loans receivable, held-for-sale | $ 24,397 | |||
|
Principal Business and Organization |
6 Months Ended |
---|---|
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principal Business and Organization | Note 1. 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 also 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 |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Basis of Presentation: Reclassifications: Use of Estimates: reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Principles of Consolidation: 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. Refer to Note 10 for additional discussion of the Company’s VIEs. Cash, Cash Equivalents and Restricted Cash: The following table provides a reconciliation of cash, cash equivalents and restricted cash in the Company’s consolidated balance sheets to the total amount shown in the Company’s unaudited consolidated statements of cash flows:
Loans Receivable and Provision for Loan Losses: through a charge to the provision for loan losses. Impairment of these loans, which are collateral dependent, is measured by comparing the estimated fair value of the underlying collateral, less costs to sell, to the book value of the respective 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. 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 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 5-point scale, the Company’s loans are rated “1” through “5,” from less risk to greater risk, which ratings are defined as follows:
Mortgage-backed Securities: held-to-maturity available-for-sale held-to-maturity Held-to-maturity available-for sale and are reported at fair value on the consolidated balance sheets with changes in fair value recorded in other comprehensive income. The Company regularly monitors its mortgage-backed securities to ensure investments that may be other-than-temporarily impaired are timely identified, properly valued and charged against earnings in the proper period. The determination that a security has incurred an other-than-temporary decline in value requires the judgment of management. Assessment factors include, but are not limited to, the length of time and the extent to which the market value has been less than amortized cost, the financial condition and rating of the issuer, and the intent to sell or whether it is more likely than not that the Company will be required to sell. Real Estate: identifiable assets, the asset or set of assets is not a business. The one property acquisition to date has been 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 and below-market leases is recorded as an adjustment to rental revenue on the Company’s Consolidated statements of operations. The amortization of in-place leases is recorded as an adjustment to depreciation and amortization expense on the Company’s 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 cash flows on real estate properties are considered to be “long-lived assets to be held and used” on an undiscounted basis to determine whether an asset has been impaired, 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: Fair Value Measurements and Disclosures 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:
The estimated value of each asset reported at fair value using Level 3 inputs is determined by an internal committee composed 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 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:
Deferred Financing Costs: Revenue Recognition: 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. Loans are placed on non-accrual status when full repayment of principal and interest is in doubt, which generally occurs when principal or interest is 120 days or more past due unless the loan is both well secured and in the process of collection. Interest payments received on non-accrual loans are generally recognized as interest income on a cash basis. 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. Rental revenue primarily consists of base rent arising from tenant leases at the Company’s properties. Base rent is recognized on a straight-line basis over the life of the lease, including any rent increases or rent abatement. The Company begins to recognize revenue upon the acquisition of the related property or when a tenant takes possession of the leased space. Other rental revenues include amounts due from tenants for costs related to common area maintenance, real estate taxes, and other recoverable costs included in lease agreements. The Company evaluates the collectability of receivables related to rental revenue on an individual lease basis. In making this determination, the Company considers the length of time a receivable has been outstanding, tenant credit-worthiness, payment history, available information about the financial condition of the tenant, and current economic trends, among other factors. Tenant receivables that are deemed uncollectible are recognized as a reduction to rental revenue. Organization Costs: Offering Costs: paid-in capital on the consolidated balance sheets as it raises proceeds in its continuous public offering in excess of $250,000. In April 2020, FS Real Estate Advisor agreed not to seek reimbursement of organization and offering costs previously incurred until such time as it determined that the Company had achieved economies of scale sufficient to ensure that it could bear a reasonable level of expenses in relation to its income. The Company began reimbursing FS Real Estate Advisor in September 2020 and, as such, 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 after such time. During the period from November 7, 2016 (Inception) to June 30, 2022, the Company incurred offering costs of $18,494, which were paid on its behalf by FS Investments (see Note 7). Income Taxes: 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 Stockholder Servicing Fees: Liabilities 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. Derivative Instruments 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 June 30, 2022, 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. Recent Accounting Pronouncements: 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326) 2016-13. ASU 2016-13 significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. ASU 2016-13 will replace the “incurred loss” available-for-sale 2019-10, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instrument (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) Effective Dates, 2016-13 for smaller reporting companies until fiscal years beginning after December 15, 2022. While the Company, as a smaller reporting company, continues to evaluate the impact of this update on its unaudited consolidated financial statements, the Company expects that the adoption will result in an increased amount of provisions for potential loan losses as well as the recognition of such provisions earlier in the credit cycle. The Company currently does not have any provision for loan losses recorded on the consolidated financial statements.
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Loans Receivable | Note 3. Loans Receivable The following table details overall statistics for the Company’s loans receivable portfolio as of June 30, 2022 and December 31, 2021:
For the six months ended June 30, 2022 and 2021, 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
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 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
The Company did not have any impaired loans,
non-accrual loans, or loans in maturity default within the loans receivable, held-for-investment |
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Mortgage-Backed Securities | Note 4. Mortgage Backed Securities Mortgage-backed securities, available-for-sale Commercial mortgage-backed securities, or CMBS, classified as available-for-sale The table below summarizes various attributes of the Company’s investments in available-for-sale
The following table presents the gross unrealized losses and estimated fair value of any available-for-sale
As of June 30, 2022 and December 31, 2021, there were twelve securities and one security, 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
The table below summarizes the maturities of the Company’s investments in held-to-maturity
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Real Estate | Note 5. Real Estate Investment in real estate, net, consisted of the following as of June 30, 2022:
No real estate was owned as of December 31, 2021. Acquisition On June 23, 2022, the Company acquired 555 Aviation, a 260,000 square foot creative office building located in El Segundo, California. The property was built in 1966 and was renovated in 2017 to convert the property into a creative office building, including LEED Gold certification, a glass façade and an interior open-air atrium. The property sits on 13 acres and is located in a growing Los Angeles sub-market of El Segundo near Los Angeles International Airport. The property is currently 100% leased to three tenants. The following table details the purchase price allocation for the property acquired. As of June 30, 2022, this was the only property held by the Company.
The weighted average amortization period for the acquired
in-place lease intangibles for the property acquired during the three months ended June 30, 2022 was approximately nine years. |
Financing Arrangements |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Arrangements | Note 6. Financing Arrangements The following tables present summary information with respect to the Company’s outstanding financing arrangements as of June 30, 2022 and December 31, 2021.
The Company’s average borrowings and weighted average interest rate, including the effect of non-usage fees, for the six months ended June 30, 2022 were $3,672,968 and 2.22%, respectively. The Company’s average borrowings and weighted average interest rate, including the effect of non-usage fees, for the year ended December 31, 2021 were $1,346,445 and 1.69%, 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 June 30, 2022 and December 31, 2021. 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 based on the maturity date of each financing arrangement:
Collateralized Loan Obligations The Company financed certain pools of loans through collateralized loan obligations, which include 2019-FL1, 2021-FL2, 2021-FL3, 2022-FL4, and 2022-FL5, or collectively, the CLOs. The following table outlines the number of loans and the principal balance of the collateralized pool of interests for each CLO.
The Company incurred issuance costs and discount related to the collateralization of the CLO Notes, which are amortized to interest expense over the remaining life of the loans. The following table outlines the issuance costs and discount to be amortized.
2022-FL5 NotesOn June 16, 2022, the Company issued $570,112 of collateralized loan obligation notes, or the CLO5 Transaction, through the Sub-REIT and a wholly-owned financing subsidiary of the Sub-REIT, FS Rialto 2022-FL5 Issuer, LLC, a Delaware limited liability company, as issuer. Repurchase Agreements WF-1 Facility On August 30, 2017, the Company’s indirect wholly owned, special-purpose financing subsidiary, FS CREIT Finance WF-1 LLC, or WF-1, as seller, entered into a Master Repurchase and Securities Contract, or, as amended, the WF-1 Repurchase Agreement, and together with the related transaction documents, the WF-1 Facility, with Wells Fargo, as buyer, to finance the acquisition and origination of commercial real estate whole loans or senior controlling participation interests in such loans. The maximum amount of financing available under the WF-1 Facility as of June 30, 2022 is $650,000. Each transaction under the WF-1 Facility has its own specific terms, such as identification of the assets subject to the transaction, sale price, repurchase price and rate. On February 11, 2022, the WF-1 Repurchase Agreement was amended to temporarily increase the maximum amount of financing available from $350,000 to $650,000 until May 11, 2022. On May 12, 2022, the WF-1 Repurchase Agreement was amended to extend the temporary increase of $ 650,000 maximum amount of financing available until September 30, 2022 and to extend the maturity date and availability period, in each case, from August 30, 2022 to August 30, 2023. The Company incurred deferred financing costs, which are being amortized to interest expense over the life of the facility. As of June 30, 2022, $1,367 of deferred financing costs had yet to be amortized to interest expense. GS-1 Facility On January 26, 2018, the Company’s indirect wholly-owned, special-purpose financing subsidiary, FS CREIT Finance GS-1 LLC, or GS-1, as seller, entered into an Uncommitted Master Repurchase and Securities Contract Agreement, or, as amended, the GS-1 Repurchase Agreement, and together with the related transaction documents, the GS-1 Facility with Goldman Sachs, as buyer, to finance the acquisition and origination of whole, performing senior commercial or multifamily floating-rate mortgage loans secured by first liens on office, retail, industrial, hospitality, multifamily or other commercial properties. The maximum amount of financing available under the GS-1 Facility as of June 30, 2022 is $350,000. Each transaction under the GS-1 Facility has its own specific terms, such as identification of the assets subject to the transaction, sale price, repurchase price and rate. On January 26, 2022, the GS-1 Repurchase Agreement was amended to extend the availability period to January 26, 2023, with an option to extend one additional year to January 26, 2024. After the end of the availability period, GS-1 may exercise an option to commence a one-year amortization period, so long as certain conditions are met. During the amortization period, certain changes to the terms of the GS-1 Facility would apply, including an increase to the rate charged on each asset financed under the GS-1 Facility. The maximum amount of financing available increased from $250,000 to $350,000 with a temporary additional increase to $500,000 that was available until the closing of the CLO4 Transaction. The Company incurred deferred financing costs, which are being amortized to interest expense over the life of the facility. As of June 30, 2022, $335 of deferred financing costs had yet to be amortized to interest expense. BB-1 Facility On February 22, 2021, the Company’s indirect wholly owned, special-purpose financing subsidiary, FS CREIT Finance BB-1 LLC, or BB-1, entered into a Master Repurchase Agreement, or the BB-1 Repurchase Agreement, and together with the related transaction documents, the BB-1 Facility, as seller, with Barclays Bank PLC, or Barclays, as purchaser, to finance the acquisition and origination of whole, performing senior commercial or multifamily floating-rate mortgage loans secured by first liens on office, retail, industrial, hospitality, multifamily, self-storage and manufactured housing property (or a combination of the foregoing, including associated parking structures). The maximum amount of financing available under the BB-1 Facility as of June 30, 2022 was $700,000. Each transaction under the BB-1 Facility has its own specific terms, such as identification of the assets subject to the transaction, sale price, repurchase price and rate. On June 7, 2022, the BB-1 Loan Agreement was amended to, among other things, increase the maximum committed facility amount to $700,000. The initial availability period of the BB-1 Facility is three years. BB-1 may extend the availability period for a one-year term extension, so long as certain conditions are met. After the end of the availability period, BB-1 one-year amortization period up to two times, so long as certain conditions are met. During the amortization period, certain of the terms of the BB-1 Facility will be modified, including a requirement to pay down a certain amount of the outstanding purchase price of each asset financed under the BB-1 Facility.The Company incurred deferred financing costs, which are being amortized to interest expense over the life of the facility. As of June 30, 2022, $1,576 of deferred financing costs had yet to be amortized to interest expense. RBC Facility On March 2, 2020, the Company’s wholly-owned subsidiary, FS CREIT Investments LLC, or FS CREIT Investments, as seller, entered into a Master Repurchase Agreement, or the RBC Facility, with Royal Bank of Canada, or RBC, as buyer, to enable FS CREIT Investments to execute repurchase transactions of securities and financial instruments on an asset-by-asset Revolving Credit Facilities CNB Facility On August 22, 2019, the Company and FS CREIT Finance Holdings LLC, or Finance Holdings, a direct wholly owned subsidiary of the Company, each as a borrower, entered into a Loan and Security Agreement, or the CNB Loan Agreement, and together with the related transaction documents, the CNB Facility, with City National Bank, or CNB, as administrative agent and lender. The maximum committed facility amount under the CNB Facility as of June 30, 2022 was $100,000. Borrowings under the CNB Facility are subject to compliance with a borrowing base calculated based on the Company’s stockholder subscriptions and certain cash and assets held directly by the Company. Borrowed amounts under the CNB facility must be repaid no later than 180 days after the funding date of such borrowing. In addition, the borrowers pay a non-utilization fee quarterly in arrears in an amount equal to0.375% per annum on the daily unused portion of the maximum facility amount. The CNB Facility matures on June 7, 2023, with an option to extend for up to three additional terms not longer than 364 days each, subject to CNB’s consent. On May 5, 2022, the CNB Loan Agreement was amended to, among other things, (i) increase the maximum committed facility amount from $55,000 to $100,000, (ii) introduce a new borrowing condition requiring collateral coverage of 1.4 times for each dollar borrowed in excess of $50,000, and (iii) transition the benchmark rate from LIBOR to SOFR, resulting in an interest rate of SOFR plus a spread of 2.25% plus a credit spread adjustment of 0.10%. The Company incurred deferred financing costs, which are being amortized to interest expense over the life of the facility. As of June 30, 2022, $647 of deferred financing costs had yet to be amortized to interest expense. MM-1 Facility On September 20, 2021, FS CREIT Finance MM-1 LLC, or MM-1, an indirect wholly-owned, special-purpose financing subsidiary of the Company, entered into a Loan and Servicing Agreement, or the MM-1 LoanMM-1 Facility, by and among Finance Holdings, MM-1, as borrower and portfolio asset servicer, Massachusetts Mutual Life Insurance Company, or Mass Mutual, and the other lenders from time to time party thereto, or the Lenders, Wells Fargo Bank, N.A., as administrative agent and as collateral custodian, and Mass Mutual, as facility servicer. The maximum committed facility amount under the MM-1 Facility as of June 30, 2022 is $1,000,000. Borrowings under the MM-1 Facility are subject to compliance with a borrowing base calculated based on advance rates applied to the value of MM-1’s assets. The MM-1 Facility provides for a three-year availability period for borrowings, extendable for one additional year (for an additional fee of 0.25%) and an eight-year final maturity. Under the MM-1 Facility, starting 18 months after the initial closing date, the full interest rate on outstanding loans will be payable on 85% of the commitments, or the Minimum Usage Amount, regardless of usage. The MM-1 Facility also has an unused commitment fee of 0.30% per annum payable on: (i) during the first 18 months after the closing date, the unused commitment amounts and (ii) thereafter, the unused commitment amounts in excess of the Minimum Usage Amount. On February 23, 2022, the MM-1 Repurchase Agreement was amended to exercise the accordion option to increase the maximum committed facility amount from $200,000 to $250,000. On March 4, 2022 the MM-1 Repurchase Agreement was further amended to increase the maximum committed facility amount from $250,000 to $500,000, and reduce the applicable interest spread from 2.10% to 2.05% per annum. On April 27, 2022, the MM-1 Repurchase Agreement was amended and restated to provide for an increase of the maximum committed facility amount from $500,000 to $1,000,000, and a change of interest rate from LIBOR plus a spread of 2.05% to Term SOFR plus a spread of 2.025% plus a credit spread adjustment of 0.11%. The Company incurred deferred financing costs, which are being amortized to interest expense over the life of the facility. As of June 30, 2022, $8,666 of deferred financing costs had yet to be amortized to interest expense. 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 maximum amount of financing under the facility as of June 30, 2022 is $ 126,700. The Company incurred deferred financing costs, which are being amortized to interest expense over the life of the facility. As of June 30, 2022, $2,132 of deferred financing costs had yet to be amortized to interest expense. |
Related Party Transactions |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions | Note 7. Related Party Transactions Compensation of FS Real Estate Advisor and the Dealer Manager Pursuant to the third amended and restated advisory agreement dated as of December 15, 2021 or the 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, 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. FS 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 andapproved 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 form of Class I PCR agreement to be 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 (A) realized gains (losses) not otherwise included in GAAP net income (loss), (B) stockholder servicing fees, and (C) reimbursements for organization and offering expenses, and excluding (i) non-cash equity compensation expense, (ii) depreciation and amortization, (iii) 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 (iv) 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 most recently published 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. 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 six months ended June 30, 2022 and 2021, $24,328 and $9,682, respectively, in origination fees were paid directly by the borrowers to FS Real Estate Advisor or Rialto and not to the Company. The Company reimburses FS Real Estate Advisor and Rialto for their actual costs incurred in providing administrative services to the Company. FS Real Estate Advisor and Rialto are required to allocate the cost of such services to the Company based on objective factors such as total assets, revenues and/or time allocations. 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. FS Investments funded the Company’s organization and offering costs in the amount of $18,737 for the period from November 7, 2016 (Inception) to June 30, 2022. 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. Under the advisory agreement, FS Real Estate Advisor agreed to advance all of the Company’s organization and offering expenses on the Company’s behalf until it raised $250,000 of gross proceeds from its public offering. FS Real Estate Advisor and Rialto agreed to defer the recoupment of any organization and offering expenses that may be reimbursable by the Company under the advisory agreement with respect to gross proceeds raised in the offering in excess of $250,000 until FS Real Estate Advisor, in its sole discretion, determined that the Company had achieved economies of scale sufficient to ensure that it could bear a reasonable level of expenses in relation to its income. The Company began reimbursing FS Real Estate Advisor in September 2020 and, as such, 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 after such time. During the six months ended June 30, 2022, the Company paid $6,999 to FS Real Estate Advisor for offering costs previously funded. As of June 30, 2022, $9,076 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 during the six months ended June 30, 2022 and 2021:
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 % 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:
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 June 30, 2022 and December 31, 2021, the Company accrued $91,206 and $48,514, 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 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 a ttributable 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. FS Real Estate Advisor and Rialto each agreed to waive the recoupment of any amounts that may be subject to conditional reimbursement during the quarterly period ended March 31, 2020. 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 June 30, 2022, the Company accrued $5,839 for reimbursement of expenses that FS Real Estate Advisor and Rialto paid or waived, including $0 in reimbursements for the six months ended June 30, 2022. During the period from September 13, 2017 (Commencement of Operations) to June 30, 2022, the Company received $5,839 in cash reimbursements from FS Real Estate Advisor. During the six months ended June 30, 2022, $482 of expense recoupments were paid to FS Real Estate Advisor and Rialto. As of June 30, 2022 and December 31, 2021, $1,460 and $62, respectively, of expense recoupments were payable to FS Real Estate Advisor and Rialto and $257 of expense reimbursements received from FS Real Estate Advisor and Rialto were eligible for recoupment. 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 June 30, 2022, 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 $22,221 and $388, respectively. RIAL 2022-FL8 Transaction In the second quarter of 2022, the Company purchased $36,000 of the Class E Notes 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. |
Stockholder's Equity |
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Stockholders' Equity | Note 8. Stockholders’ Equity Below is a summary of transactions with respect to shares of the Company’s common stock during the six months ended June 30, 2022 and 2021:
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 means that in any NAV per calendar quarter of all classes of shares then participating in the share repurchase plan, which 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 six months ended June 30, 2022 and 2021, the Company repurchased 2,278,898 and 210,037, respectively, shares of common stock under its share repurchase plan representing a total of $56,771 and $5,233, respectively. The Company had no unfulfilled repurchase requests during the three months ended June 30, 2022 or 2021, 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 six months ended June 30, 2022:
The following table reflects the amount of cash distributions that the Company paid on its common stock during the six months ended June 30, 2022, and 2021:
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 July 2022 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. |
Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Note 9. Fair Value of Financial Instruments The following table presents the Company’s financial assets carried at fair value in the consolidated balance sheets by its level in the fair value hierarchy:
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:
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, |
Variable Interest Entities |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities | Note 10. Variable Interest Entities Consolidated Variable Interest Entities 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. The following table details the assets and liabilities of the Company’s consolidated CLOs as of June 30, 2022 and December 31, 2021:
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. Non-Consolidated Variable Interest Entities The Company invested $67,005 in subordinated positions of CMBS trusts which are considered VIEs. The Company is not the primary beneficiary of the VIEs because it does not have the power to direct the activities that most significantly affect the VIEs’ economic performance, nor does it provide guarantees or recourse to the VIEs other than standard representations and warranties and, therefore, does not consolidate the VIEs on its balance sheets. The Company has classified its investment in the CMBS as held-to-maturity The Company is not obligated to provide, nor has it provided financial support to these consolidated and
non-consolidated VIEs. |
Commitments and Contingencies |
6 Months Ended |
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Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11. 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. |
Intangibles |
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Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangibles | Note 12. Intangibles The gross carrying amount and accumulated amortization of the Company’s real estate related intangible assets consisted of the following as of June 30, 2022:
No intangible assets or liabilities related to the Company’s real estate investments existed as of December 31, 2021. 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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Derivative Instruments |
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Summary of Derivative Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | Note 13. 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 June 30, 2022. The Company did not hold any interest rate caps as of December 31, 2021.
The following table details the fair value of the Company’s derivative financial instrument:
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Subsequent Events |
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Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 14. Subsequent Events The following is a discussion of material events that have occurred subsequent to June 30, 2022 through the issuance of the unaudited consolidated financial statements. Barclay Revolving Credit Facility On August 1, 2022, the Company, as borrower, entered into a senior secured revolving credit facility, or the Senior Secured Revolving Credit Facility with Barclays, as administrative agent, and the lenders party thereto. The Senior Secured Revolving Credit Facility provides for borrowings, subject to a borrowing base calculation, in an aggregate maximum committed amount of up to $310,000, with an option for the Company to request, at one or more times, that existing and/or new lenders, at their election, provide up to $155,000 of additional commitments. The Senior Secured Revolving Credit Facility will mature on August 1, 2025, subject to options for the Company to request that lenders, at their election, provide up to two one-year maturity extensions. In connection with the closing of the Senior Secured Revolving Credit Facility, the Company repaid all outstanding borrowings and all other obligations under, and concurrently terminated, the CNB Facility. Borrowings under the Senior Secured Revolving Credit 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 per annum and a credit spread adjustment of 0.10% per annum. In each case, the spread will increase by 0.25 % on the 60th day any loan remains outstanding. The Company will pay a commitment fee of 0.25% per annum on undrawn availability for each day on which over 50% of the maximum committed amount is undrawn and 0.35% per annum on undrawn availability for each day on which 50% or less of the maximum committed amount is undrawn. In connection with the Senior Secured Revolving Credit Facility, the Company has made certain representations and warranties and must comply with various covenants and reporting requirements customary for facilities of this type. In addition, the Company must comply with the following financial covenants, in each case, measured as of the last day of each fiscal quarter: (a) a minimum fixed charge coverage ratio for the prior four fiscal quarters of not less than 1.50 to 1.00, (b) minimum tangible net worth not less than the sum of (i) $1,367,009 plus (ii) 75% of net cash proceeds from any offering of the Company’s capital stock after the closing date of the Senior Secured Revolving Credit Facility minus (iii) 50% of any cash used by the Company to repurchase any of its capital stock after the closing date of the Senior Secured Revolving Credit Facility, (c) minimum liquidity not less than $10,000, (d) a maximum debt to equity ratio for the prior four fiscal quarters of not greater than 3.50 to 1.00, and (e) an interest coverage ratio (calculated using earnings of assets contributing to the borrowing base) for the prior four fiscal quarters of not less than 1.50 to 1.00. The Senior Secured Revolving Credit Facility contains events of default customary for facilities of this type. Upon the occurrence of an event of default, Barclays, at the instruction of the lenders, may terminate the commitments and declare outstanding borrowings and all other obligations under the Senior Secured Revolving Credit Facility immediately due and payable. The Company’s obligations under the Senior Secured Revolving Credit Facility are guaranteed by certain of the Company’s subsidiaries. The Company’s obligations under the Senior Secured Revolving Credit Facility are secured by a first priority security interest in substantially all of the assets of the Company and the subsidiary guarantors thereunder. Status of Offerings As of August 5 2022, the Company has issued 92,410,687 shares of common stock (consisting of 2,629,044 shares of Class F common stock, 1,036,671 shares of Class Y common stock, 1,685,871 shares of Class T common stock, 51,221,317 shares of Class S common stock, 783,331 shares of Class D common stock, 4,502,874 shares of Class M common stock and 30,551,579 shares of Class I common stock), including shares issued pursuant to its distribution reinvestment plan, for gross proceeds of $2,306,777. , |
Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | Basis of Presentation: |
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Reclassifications | Reclassifications: |
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Use of Estimates | Use of Estimates: reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
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Principles of Consolidation | Principles of Consolidation: 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. Refer to Note 10 for additional discussion of the Company’s VIEs. |
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Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash: The following table provides a reconciliation of cash, cash equivalents and restricted cash in the Company’s consolidated balance sheets to the total amount shown in the Company’s unaudited consolidated statements of cash flows:
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Loans Receivable and Provision for Loan Losses | Loans Receivable and Provision for Loan Losses: through a charge to the provision for loan losses. Impairment of these loans, which are collateral dependent, is measured by comparing the estimated fair value of the underlying collateral, less costs to sell, to the book value of the respective 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. 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 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 5-point scale, the Company’s loans are rated “1” through “5,” from less risk to greater risk, which ratings are defined as follows:
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Mortgage backed securities | Mortgage-backed Securities: held-to-maturity available-for-sale held-to-maturity Held-to-maturity available-for sale and are reported at fair value on the consolidated balance sheets with changes in fair value recorded in other comprehensive income. The Company regularly monitors its mortgage-backed securities to ensure investments that may be other-than-temporarily impaired are timely identified, properly valued and charged against earnings in the proper period. The determination that a security has incurred an other-than-temporary decline in value requires the judgment of management. Assessment factors include, but are not limited to, the length of time and the extent to which the market value has been less than amortized cost, the financial condition and rating of the issuer, and the intent to sell or whether it is more likely than not that the Company will be required to sell. |
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Real Estate | Real Estate: identifiable assets, the asset or set of assets is not a business. The one property acquisition to date has been 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 and below-market leases is recorded as an adjustment to rental revenue on the Company’s Consolidated statements of operations. The amortization of in-place leases is recorded as an adjustment to depreciation and amortization expense on the Company’s 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 cash flows on real estate properties are considered to be “long-lived assets to be held and used” on an undiscounted basis to determine whether an asset has been impaired, 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. |
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Fair Value of Financial Instruments | Fair Value of Financial Instruments: Fair Value Measurements and Disclosures 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:
The estimated value of each asset reported at fair value using Level 3 inputs is determined by an internal committee composed 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 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:
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Deferred Financing Costs | Deferred Financing Costs: |
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Revenue Recognition | Revenue Recognition: 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. Loans are placed on non-accrual status when full repayment of principal and interest is in doubt, which generally occurs when principal or interest is 120 days or more past due unless the loan is both well secured and in the process of collection. Interest payments received on non-accrual loans are generally recognized as interest income on a cash basis. 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. Rental revenue primarily consists of base rent arising from tenant leases at the Company’s properties. Base rent is recognized on a straight-line basis over the life of the lease, including any rent increases or rent abatement. The Company begins to recognize revenue upon the acquisition of the related property or when a tenant takes possession of the leased space. Other rental revenues include amounts due from tenants for costs related to common area maintenance, real estate taxes, and other recoverable costs included in lease agreements. The Company evaluates the collectability of receivables related to rental revenue on an individual lease basis. In making this determination, the Company considers the length of time a receivable has been outstanding, tenant credit-worthiness, payment history, available information about the financial condition of the tenant, and current economic trends, among other factors. Tenant receivables that are deemed uncollectible are recognized as a reduction to rental revenue. |
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Organization Costs | Organization Costs: |
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Offering Costs | Offering Costs: paid-in capital on the consolidated balance sheets as it raises proceeds in its continuous public offering in excess of $250,000. In April 2020, FS Real Estate Advisor agreed not to seek reimbursement of organization and offering costs previously incurred until such time as it determined that the Company had achieved economies of scale sufficient to ensure that it could bear a reasonable level of expenses in relation to its income. The Company began reimbursing FS Real Estate Advisor in September 2020 and, as such, 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 after such time. During the period from November 7, 2016 (Inception) to June 30, 2022, the Company incurred offering costs of $18,494, which were paid on its behalf by FS Investments (see Note 7). |
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Income Taxes | Income Taxes: 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. |
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Uncertainty in Income Taxes | Uncertainty in Income Taxes |
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Stockholder Servicing Fees | Stockholder Servicing Fees: Liabilities 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. |
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Derivative Instruments | Derivative Instruments 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 June 30, 2022, 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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Recent Accounting Pronouncements | Recent Accounting Pronouncements: 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326) 2016-13. ASU 2016-13 significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. ASU 2016-13 will replace the “incurred loss” model under existing guidance with an “expected loss” model for instruments measured at amortized cost and require entities to record allowances for available-for-sale 2019-10, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instrument (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) Effective Dates, 2016-13 for smaller reporting companies until fiscal years beginning after December 15, 2022. While the Company, as a smaller reporting company, continues to evaluate the impact of this update on its unaudited consolidated financial statements, the Company expects that the adoption will result in an increased amount of provisions for potential loan losses as well as the recognition of such provisions earlier in the credit cycle. The Company currently does not have any provision for loan losses recorded on the consolidated financial statements. |
Summary of Significant Accounting Policies (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash in the Company’s consolidated balance sheets to the total amount shown in the Company’s unaudited consolidated statements of cash flows:
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Summary of Useful Lives of Investments in Real Estate | 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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Loans Receivable (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Details Overall Statistics for Loans Receivable Portfolio | The following table details overall statistics for the Company’s loans receivable portfolio as of June 30, 2022 and December 31, 2021:
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Summary of Activity in Loan Portfolio | For the six months ended June 30, 2022 and 2021, the activity in the Company’s loan portfolio, was as follows:
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Schedule of Loan Receivables Acquired By Property | 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
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Schedule of Loan Receivables Acquired By Geographics |
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Loans receivable based on internal risk ratings | The following table allocates the net book value of the Company’s loans receivable, held-for-investment
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Mortgage-Backed Securities (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Available-for-sale Securities Reconciliation | The table below summarizes various attributes of the Company’s investments in available-for-sale
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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
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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
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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
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Real Estate (Table) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
Real Estate [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Real Estate Properties | Investment in real estate, net, consisted of the following as of June 30, 2022:
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Summary of Asset Acquisition | The following table details the purchase price allocation for the property acquired. As of June 30, 2022, this was the only property held by the Company.
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Financing Arrangements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 June 30, 2022 and December 31, 2021.
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Summary of based on the maturity date of each financing arrangement | The following table sets forth the Company’s repayment schedule for secured financings based on the maturity date of each financing arrangement:
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Summary of number of loans and the principal balance | The Company financed certain pools of loans through collateralized loan obligations, which include 2019-FL1, 2021-FL2, 2021-FL3, 2022-FL4, and 2022-FL5, or collectively, the CLOs. The following table outlines the number of loans and the principal balance of the collateralized pool of interests for each CLO.
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Summary of the issuance costs and discount to be amortized | The following table outlines the issuance costs and discount to be amortized.
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Related Party Transactions (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions [Table Text Block] | The following table describes the fees and expenses accrued under the advisory agreement during the six months ended June 30, 2022 and 2021:
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Schedule Of Expense Reimbursed | 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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Stockholder's Equity (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Common Stock Transactions | Below is a summary of transactions with respect to shares of the Company’s common stock during the six months ended June 30, 2022 and 2021:
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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 six months ended June 30, 2022:
The following table reflects the amount of cash distributions that the Company paid on its common stock during the six months ended June 30, 2022, and 2021:
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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 July 2022 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) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | The following table presents the Company’s financial assets carried at fair value in the consolidated balance sheets by its level in the fair value hierarchy:
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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:
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Variable Interest Entities (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 CLOs as of June 30, 2022 and December 31, 2021:
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Intangibles (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets | The gross carrying amount and accumulated amortization of the Company’s real estate related intangible assets consisted of the following as of June 30, 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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Derivative Instruments (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Derivative Instruments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Derivative Instruments | Company’s derivative instrument as of June 30, 2022. The Company did not hold any interest rate caps as of December 31, 2021.
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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 - Additional Information (Detail) - Class T, Class S, Class D, Class M and Class I shares [Member] - Maximum [Member] |
6 Months Ended |
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Jun. 30, 2022
USD ($)
| |
Subsidiary, Sale of Stock [Line Items] | |
Common stock value submitted for approval under initial public offering | $ 2,750,000,000 |
Primary Offering [Member] | |
Subsidiary, Sale of Stock [Line Items] | |
Common stock value submitted for approval under initial public offering | 2,500,000,000 |
Distribution Reinvestment Plan [Member] | |
Subsidiary, Sale of Stock [Line Items] | |
Common stock value submitted for approval under initial public offering | $ 250,000,000 |
Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|---|---|
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 75,659 | $ 46,798 | $ 13,318 | |
Restricted cash | 19,111 | 39,010 | 18,684 | |
Total cash, cash equivalents and restricted cash | $ 94,770 | $ 85,808 | $ 32,002 | $ 17,874 |
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands |
6 Months Ended | |
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Jun. 30, 2022 |
Jun. 30, 2021 |
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Offering costs incurred | $ 18,494 | |
Percentage of distribution of annual REIT taxable income to stockholders to qualify as REIT | 90.00% | |
Unrecognized interest or penalties | $ 0 | $ 0 |
Minimum Gross Proceeds From Public Offering To Charge Offering Costs | $ 250,000 | |
Percentage of reimbursement revenue | 0.75% | |
Accrued Unrecognised Interest or Penalties | $ 0 |
Summary of Significant Accounting Policies - Summary of Useful Lives of Investments in Real Estate (Detail) |
6 Months Ended |
---|---|
Jun. 30, 2022 | |
Tenant improvements [Member] | |
Disclosure In Tabular Form Of Useful Lives Of Investments In Real Estate [Line Items] | |
Depreciable life | Shorter of estimated useful life or lease term |
Lease intangibles [Member] | |
Disclosure In Tabular Form Of Useful Lives Of Investments In Real Estate [Line Items] | |
Depreciable life | Over lease term |
Minimum [Member] | Building [Member] | |
Disclosure In Tabular Form Of Useful Lives Of Investments In Real Estate [Line Items] | |
Depreciable life | 30 years |
Minimum [Member] | Building and land improvements [Member] | |
Disclosure In Tabular Form Of Useful Lives Of Investments In Real Estate [Line Items] | |
Depreciable life | 2 years |
Minimum [Member] | Furniture, fixtures and equipment [Member] | |
Disclosure In Tabular Form Of Useful Lives Of Investments In Real Estate [Line Items] | |
Depreciable life | 1 year |
Maximum [Member] | Building [Member] | |
Disclosure In Tabular Form Of Useful Lives Of Investments In Real Estate [Line Items] | |
Depreciable life | 42 years |
Maximum [Member] | Building and land improvements [Member] | |
Disclosure In Tabular Form Of Useful Lives Of Investments In Real Estate [Line Items] | |
Depreciable life | 20 years |
Maximum [Member] | Furniture, fixtures and equipment [Member] | |
Disclosure In Tabular Form Of Useful Lives Of Investments In Real Estate [Line Items] | |
Depreciable life | 10 years |
Loans Receivable - Summary of Details Overall Statistics for Loans Receivable Portfolio (Detail) $ in Thousands |
6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022
USD ($)
Loans
|
Dec. 31, 2021
USD ($)
Loans
|
Jun. 30, 2021
USD ($)
|
Dec. 31, 2020
USD ($)
|
|
Loans and Leases Receivable, Net Amount [Abstract] | ||||
Number of loans | Loans | 135 | 102 | ||
Principal balance | $ 6,539,424 | $ 3,843,110 | ||
Net book value | 6,538,370 | 3,841,868 | $ 1,622,415 | $ 700,149 |
Unfunded loan commitments | $ 610,703 | $ 414,818 | ||
Weighted-average cash coupon | 3.82% | 3.68% | ||
Weighted-average all-in yield | 3.87% | 3.73% | ||
Weighted-average maximum maturity (years) | 4 years 4 months 24 days | 4 years 6 months |
Loans Receivable - Summary of Activity in Loan Portfolio (Detail) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Loans and Leases Receivable, Net Amount [Abstract] | ||
Balance at beginning of period | $ 3,841,868 | $ 700,149 |
Loan fundings | 3,084,586 | 1,018,208 |
Loan repayments | (389,036) | (96,067) |
Amortization of deferred fees on loans | 1,721 | 460 |
Exit and extension fees received on loans receivable | (769) | (335) |
Balance at end of period | $ 6,538,370 | $ 1,622,415 |
Loans Receivable - Loan Receivables Acquired By Property (Detail) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Dec. 31, 2021 |
Jun. 30, 2021 |
Dec. 31, 2020 |
|
Net book value | $ 6,538,370 | $ 3,841,868 | $ 1,622,415 | $ 700,149 |
Percentage | 100.00% | 100.00% | ||
Multifamily [Member] | ||||
Net book value | $ 4,204,627 | $ 2,192,346 | ||
Percentage | 64.00% | 57.00% | ||
Office [Member] | ||||
Net book value | $ 689,413 | $ 430,084 | ||
Percentage | 11.00% | 11.00% | ||
Hospitality [Member] | ||||
Net book value | $ 534,181 | $ 223,847 | ||
Percentage | 8.00% | 6.00% | ||
Retail [Member] | ||||
Net book value | $ 368,555 | $ 277,044 | ||
Percentage | 6.00% | 7.00% | ||
Industrial [Member] | ||||
Net book value | $ 359,275 | $ 348,071 | ||
Percentage | 5.00% | 9.00% | ||
Self Storage [Member] | ||||
Net book value | $ 214,890 | $ 236,921 | ||
Percentage | 3.00% | 6.00% | ||
Various [Member] | ||||
Net book value | $ 99,295 | $ 65,910 | ||
Percentage | 2.00% | 2.00% | ||
Mixed-Use [Member] | ||||
Net book value | $ 68,134 | $ 67,645 | ||
Percentage | 1.00% | 2.00% |
Loans Receivable - Loan Receivables Acquired By Geographics (Detail) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Dec. 31, 2021 |
Jun. 30, 2021 |
Dec. 31, 2020 |
|
Net book value | $ 6,538,370 | $ 3,841,868 | $ 1,622,415 | $ 700,149 |
Percentage | 100.00% | 100.00% | ||
South [Member] | ||||
Net book value | $ 3,137,981 | $ 2,270,087 | ||
Percentage | 48.00% | 59.00% | ||
West [Member] | ||||
Net book value | $ 1,301,765 | $ 637,142 | ||
Percentage | 20.00% | 17.00% | ||
Northeast [Member] | ||||
Net book value | $ 1,301,761 | $ 646,761 | ||
Percentage | 20.00% | 16.00% | ||
Various [Member] | ||||
Net book value | $ 435,978 | $ 65,910 | ||
Percentage | 7.00% | 2.00% | ||
Midwest [Member] | ||||
Net book value | $ 360,885 | $ 221,968 | ||
Percentage | 5.00% | 6.00% |
Loans Receivable - Summary of loans receivable based on internal risk ratings: (Detail) $ in Thousands |
6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022
USD ($)
Loans
|
Dec. 31, 2021
USD ($)
Loans
|
Jun. 30, 2021
USD ($)
|
Dec. 31, 2020
USD ($)
|
|
Loans Receivable Based On Internal Risk Ratings [Line Items] | ||||
Number of loans | Loans | 135 | 102 | ||
Net book value | $ | $ 6,538,370 | $ 3,841,868 | $ 1,622,415 | $ 700,149 |
Percentage | 100.00% | 100.00% | ||
Risk Level, Medium [Member] | ||||
Loans Receivable Based On Internal Risk Ratings [Line Items] | ||||
Number of loans | Loans | 135 | 102 | ||
Net book value | $ | $ 6,538,370 | $ 3,841,868 | ||
Percentage | 100.00% | 100.00% |
Mortgage-Backed Securities - Schedule of Available-for-sale Securities Reconciliation (Detail) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended | |
---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Dec. 31, 2021 |
|
Outstanding Face Amount | $ 112,073 | $ 19,575 | |
Fair Value | $ 153,274 | $ 44,518 | |
Weighted Average Coupon | 3.82% | 3.68% | |
CMBS [Member] | |||
Outstanding Face Amount | $ 159,543 | $ 44,580 | |
Amortized Cost Basis | 156,467 | 44,432 | |
Gross Unrealize Gains | 185 | 99 | |
Gross Unrealized Losses | (3,378) | (13) | |
Fair Value | $ 153,274 | $ 44,518 | |
Weighted Average Coupon | 6.69% | 6.58% | |
Weighted Average Remaining Duration (years) | 13 years 4 months 24 days | 15 years 1 month 6 days |
Mortgage-Backed Securities - Schedule of Available-for-sale an Unrealized Loss Position (Detail) - Commercial Mortgage Backed Securities [Member] - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Debt Securities Available For Sale Unrealized Loss Position Fair Value [Line Items] | ||
Securities with a loss less than 12 months | $ 131,072 | $ 905 |
Securities with a loss greater than 12 months | 0 | 0 |
Securities with a loss less than 12 months | (3,378) | (13) |
Securities with a loss greater than 12 months | $ 0 | $ 0 |
Mortgage-Backed Securities - Schedule of Available-for-sale an Unrealized Loss Position (Parenthetical) (Detail) - securities |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Commercial Mortgage Backed Securities [Member] | ||
Debt Securities Available For Sale Unrealized Loss Position Fair Value [Line Items] | ||
Debt securities available for sale unrealized loss positions number of positions | 12 | 1 |
Mortgage-Backed Securities - Summary of Investment Held-to-maturity CMBS (Detail) - Commercial Mortgage Backed Securities - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Schedule of Held-to-maturity Securities [Line Items] | ||
Net Carrying Amount (Amortized Cost) | $ 78,942 | $ 37,862 |
Gross Unrecognized Holding Gains | 0 | 0 |
Gross Unrecognized Holding Losses | 0 | 0 |
Fair Value | $ 78,942 | $ 37,862 |
Mortgage-Backed Securities - Summary of Maturities of Investment Held-to-maturity CMBS (Detail) - Commercial Mortgage Backed Securities - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Schedule of Held-to-maturity Securities [Line Items] | ||
CMBS, held-to-maturity, Total | $ 78,942 | $ 37,862 |
CMBS, held-to-maturity, Less than 1 year | 0 | 0 |
CMBS, held-to-maturity, 1-3 years | 0 | 0 |
CMBS, held-to-maturity, 3-5 years | 38,145 | 37,862 |
CMBS, held-to-maturity, More than 5 years | $ 40,797 | $ 0 |
Real Estate - Schedule of Real Estate Properties (Detail) $ in Thousands |
Jun. 30, 2022
USD ($)
|
---|---|
Real Estate [Line Items] | |
Real estate, net | $ 160,711 |
Building and building improvements [Member] | |
Real Estate [Line Items] | |
Real estate, net | 120,461 |
Land and land improvements [Member] | |
Real Estate [Line Items] | |
Real estate, net | 39,186 |
Furniture, fixtures and equipment [Member] | |
Real Estate [Line Items] | |
Real estate, net | $ 1,064 |
Real Estate - Summary of Asset Acquisition (Detail) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2022
USD ($)
| |
Asset Acquisition [Line Items] | |
Net purchase price | $ 193,802 |
Building and building improvements [Member] | |
Asset Acquisition [Line Items] | |
Net purchase price | 120,461 |
Land and land improvements [Member] | |
Asset Acquisition [Line Items] | |
Net purchase price | 39,186 |
Furniture, fixtures and equipment [Member] | |
Asset Acquisition [Line Items] | |
Net purchase price | 1,064 |
In-place lease intangibles [Member] | |
Asset Acquisition [Line Items] | |
Net purchase price | $ 33,091 |
Real Estate - Additional Information (Detail) |
3 Months Ended | |
---|---|---|
Jun. 30, 2022 |
Jun. 23, 2022
ft²
Tenants
|
|
In-place lease intangibles [Member] | ||
Real Estate [Line Items] | ||
Acquired finite lived intangible assets weighted average useful lives | 9 years | |
Creative office building [Member] | ||
Real Estate [Line Items] | ||
Area of real estate property | ft² | 260,000 | |
Percentage of real estate property leased to lessee | 100.00% | |
Number of tenants to whom the property has been leased | Tenants | 3 |
Financing Arrangements - Summary of Information of Outstanding Financing Arrangement (Detail) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Dec. 31, 2021 |
|||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Amount Outstanding | $ 5,230,993 | $ 3,007,241 | ||
Amount Available | $ 996,232 | 232,358 | ||
Description of variable rate | 0.00 | |||
Carrying Amount of Collateral | [1] | $ 7,135,412 | 4,024,394 | |
Asset Pledged as Collateral without Right [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Carrying Amount of Collateral | 5,896,033 | 3,373,658 | ||
Asset Pledged as Collateral [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Fair Value of Collateral | 5,898,512 | 3,377,354 | ||
Collateralized Loan Obligations [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Amount Outstanding | 3,226,226 | 1,903,083 | ||
Collateralized Loan Obligations [Member] | Asset Pledged as Collateral without Right [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Carrying Amount of Collateral | 3,992,448 | 2,298,368 | ||
Collateralized Loan Obligations [Member] | Asset Pledged as Collateral [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Fair Value of Collateral | 3,994,667 | 2,301,878 | ||
Repurchase Agreements [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Amount Outstanding | 1,178,929 | 904,968 | ||
Amount Available | 595,370 | 176,548 | ||
Repurchase Agreements [Member] | Asset Pledged as Collateral without Right [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Carrying Amount of Collateral | 1,100,623 | 882,214 | ||
Repurchase Agreements [Member] | Asset Pledged as Collateral [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Fair Value of Collateral | 1,100,754 | 882,130 | ||
Revolving Credit Facility [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Amount Outstanding | 701,138 | 199,190 | ||
Amount Available | 398,862 | 55,810 | ||
Revolving Credit Facility [Member] | Asset Pledged as Collateral without Right [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Carrying Amount of Collateral | 642,251 | 193,076 | ||
Revolving Credit Facility [Member] | Asset Pledged as Collateral [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Fair Value of Collateral | 642,380 | 193,346 | ||
Mortgage Loan [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Amount Outstanding | 124,700 | |||
2019-FLI Notes [Member] | Collateralized Loan Obligations [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Amount Outstanding | $ 238,034 | $ 327,665 | ||
Description of variable rate | +1.20% - 2.50% | +1.20% - 2.50% | ||
Maturity Date | Dec. 18, 2036 | Dec. 18, 2036 | ||
2019-FLI Notes [Member] | Collateralized Loan Obligations [Member] | Asset Pledged as Collateral without Right [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Carrying Amount of Collateral | $ 336,297 | $ 424,665 | ||
2019-FLI Notes [Member] | Collateralized Loan Obligations [Member] | Asset Pledged as Collateral [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Fair Value of Collateral | $ 335,994 | $ 424,877 | ||
2019-FLI Notes [Member] | Minimum [Member] | Collateralized Loan Obligations [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Basis for effective rate | 1.20 | 1.20 | ||
2019-FLI Notes [Member] | Maximum [Member] | Collateralized Loan Obligations [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Basis for effective rate | 2.50 | 2.50 | ||
2021-FL2 Notes [Member] | Collateralized Loan Obligations [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Amount Outstanding | $ 646,935 | $ 646,935 | ||
Description of variable rate | +1.22% - 3.45% | +1.22% - 3.45% | ||
Maturity Date | May 05, 2038 | May 05, 2038 | ||
2021-FL2 Notes [Member] | Collateralized Loan Obligations [Member] | Asset Pledged as Collateral without Right [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Carrying Amount of Collateral | $ 782,721 | $ 740,083 | ||
2021-FL2 Notes [Member] | Collateralized Loan Obligations [Member] | Asset Pledged as Collateral [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Fair Value of Collateral | $ 782,945 | $ 741,226 | ||
2021-FL2 Notes [Member] | Minimum [Member] | Collateralized Loan Obligations [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Basis for effective rate | 1.22 | 1.22 | ||
2021-FL2 Notes [Member] | Maximum [Member] | Collateralized Loan Obligations [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Basis for effective rate | 3.45 | 3.45 | ||
2021-FL3 Notes [Member] | Collateralized Loan Obligations [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Amount Outstanding | $ 928,483 | $ 928,483 | ||
Description of variable rate | +1.25% - 2.85% | +1.25% - 2.85% | ||
Maturity Date | Nov. 04, 2036 | Nov. 04, 2036 | ||
2021-FL3 Notes [Member] | Collateralized Loan Obligations [Member] | Asset Pledged as Collateral without Right [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Carrying Amount of Collateral | $ 1,133,690 | $ 1,133,620 | ||
2021-FL3 Notes [Member] | Collateralized Loan Obligations [Member] | Asset Pledged as Collateral [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Fair Value of Collateral | $ 1,134,805 | $ 1,135,775 | ||
2021-FL3 Notes [Member] | Minimum [Member] | Collateralized Loan Obligations [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Basis for effective rate | 1.25 | 1.25 | ||
2021-FL3 Notes [Member] | Maximum [Member] | Collateralized Loan Obligations [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Basis for effective rate | 2.85 | 2.85 | ||
2022-FL4 Notes [Member] | Collateralized Loan Obligations [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Amount Outstanding | $ 842,662 | |||
Description of variable rate | +1.90% - 4.75% | |||
Maturity Date | Jan. 31, 2039 | |||
2022-FL4 Notes [Member] | Collateralized Loan Obligations [Member] | Asset Pledged as Collateral without Right [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Carrying Amount of Collateral | $ 1,077,266 | |||
2022-FL4 Notes [Member] | Collateralized Loan Obligations [Member] | Asset Pledged as Collateral [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Fair Value of Collateral | $ 1,078,595 | |||
2022-FL4 Notes [Member] | Minimum [Member] | Collateralized Loan Obligations [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Basis for effective rate | 1.90 | |||
2022-FL4 Notes [Member] | Maximum [Member] | Collateralized Loan Obligations [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Basis for effective rate | 4.75 | |||
2022-FL5 Notes [Member] | Collateralized Loan Obligations [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Amount Outstanding | $ 570,112 | |||
Description of variable rate | +2.30% - 5.41% | |||
Maturity Date | Jun. 17, 2037 | |||
2022-FL5 Notes [Member] | Collateralized Loan Obligations [Member] | Asset Pledged as Collateral without Right [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Carrying Amount of Collateral | $ 662,474 | |||
2022-FL5 Notes [Member] | Collateralized Loan Obligations [Member] | Asset Pledged as Collateral [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Fair Value of Collateral | $ 662,328 | |||
2022-FL5 Notes [Member] | Minimum [Member] | Collateralized Loan Obligations [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Basis for effective rate | 2.30 | |||
2022-FL5 Notes [Member] | Maximum [Member] | Collateralized Loan Obligations [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Basis for effective rate | 5.41 | |||
WF-1 Facility [Member] | Repurchase Agreements [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Amount Outstanding | $ 495,250 | $ 218,912 | ||
Amount Available | $ 154,750 | $ 131,088 | ||
Description of variable rate | +2.15% - 2.50% | +2.15% - 2.50% | ||
Maturity Date | Aug. 30, 2023 | Aug. 30, 2022 | ||
WF-1 Facility [Member] | Repurchase Agreements [Member] | Asset Pledged as Collateral without Right [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Carrying Amount of Collateral | $ 496,652 | $ 225,276 | ||
WF-1 Facility [Member] | Repurchase Agreements [Member] | Asset Pledged as Collateral [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Fair Value of Collateral | $ 496,554 | $ 225,181 | ||
WF-1 Facility [Member] | Minimum [Member] | Repurchase Agreements [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Basis for effective rate | 2.15 | 2.15 | ||
WF-1 Facility [Member] | Maximum [Member] | Repurchase Agreements [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Basis for effective rate | 2.50 | 2.50 | ||
GS-1 Facility [Member] | Repurchase Agreements [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Amount Outstanding | $ 221,273 | $ 212,005 | ||
Amount Available | $ 128,727 | $ 37,995 | ||
Description of variable rate | +1.75% - 2.75% | +1.75% - 2.75% | ||
Maturity Date | Jan. 26, 2023 | Jan. 26, 2022 | ||
GS-1 Facility [Member] | Repurchase Agreements [Member] | Asset Pledged as Collateral without Right [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Carrying Amount of Collateral | $ 225,183 | $ 212,677 | ||
GS-1 Facility [Member] | Repurchase Agreements [Member] | Asset Pledged as Collateral [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Fair Value of Collateral | $ 224,481 | $ 212,574 | ||
GS-1 Facility [Member] | Minimum [Member] | Repurchase Agreements [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Basis for effective rate | 1.75 | 1.75 | ||
GS-1 Facility [Member] | Maximum [Member] | Repurchase Agreements [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Basis for effective rate | 2.75 | 2.75 | ||
BB-1 Facility [Member] | Repurchase Agreements [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Amount Outstanding | $ 388,107 | $ 442,535 | ||
Amount Available | $ 311,893 | $ 7,465 | ||
Description of variable rate | +1.55% - 1.95% | +1.55% - 1.95% | ||
Maturity Date | Feb. 22, 2024 | Feb. 22, 2024 | ||
BB-1 Facility [Member] | Repurchase Agreements [Member] | Asset Pledged as Collateral without Right [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Carrying Amount of Collateral | $ 378,788 | $ 444,261 | ||
BB-1 Facility [Member] | Repurchase Agreements [Member] | Asset Pledged as Collateral [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Fair Value of Collateral | $ 379,719 | $ 444,375 | ||
BB-1 Facility [Member] | Minimum [Member] | Repurchase Agreements [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Basis for effective rate | 1.55 | 1.55 | ||
BB-1 Facility [Member] | Maximum [Member] | Repurchase Agreements [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Basis for effective rate | 1.95 | 1.95 | ||
RBC Facility [Memebr] | Repurchase Agreements [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Amount Outstanding | $ 74,299 | $ 31,516 | ||
Description of variable rate | +1.35% | +1.35% | ||
Basis for effective rate | 1.35 | 1.35 | ||
CNB Facility [Member] | Revolving Credit Facility [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Amount Outstanding | $ 50,000 | $ 6,000 | ||
Amount Available | $ 50,000 | $ 49,000 | ||
Description of variable rate | +2.25% | +2.25% | ||
Basis for effective rate | 2.25 | 2.25 | ||
Maturity Date | Jun. 07, 2023 | Jun. 07, 2023 | ||
MM-1 Facility [Member] | Revolving Credit Facility [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Amount Outstanding | $ 651,138 | $ 193,190 | ||
Amount Available | $ 348,862 | $ 6,810 | ||
Description of variable rate | +2.03% | +2.10% | ||
Basis for effective rate | 2.03 | 2.10 | ||
Maturity Date | Sep. 20, 2029 | Sep. 20, 2029 | ||
MM-1 Facility [Member] | Revolving Credit Facility [Member] | Asset Pledged as Collateral without Right [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Carrying Amount of Collateral | $ 642,251 | $ 193,076 | ||
MM-1 Facility [Member] | Revolving Credit Facility [Member] | Asset Pledged as Collateral [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Fair Value of Collateral | 642,380 | $ 193,346 | ||
Natixis Loan [Member] | Mortgage Loan [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Amount Outstanding | 124,700 | |||
Amount Available | $ 2,000 | |||
Description of variable rate | +2.15% | |||
Basis for effective rate | 2.15 | |||
Maturity Date | Jul. 09, 2025 | |||
Natixis Loan [Member] | Mortgage Loan [Member] | Asset Pledged as Collateral without Right [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Carrying Amount of Collateral | $ 160,711 | |||
Natixis Loan [Member] | Mortgage Loan [Member] | Asset Pledged as Collateral [Member] | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Fair Value of Collateral | $ 160,711 | |||
|
Financing Arrangements - Summary of Information of Outstanding Financing Arrangement (Parenthetical) (Detail) |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2022 |
Dec. 31, 2021 |
|
Assets Sold under Agreements to Repurchase [Line Items] | ||
LIBOR rate | 0.00 | |
London Interbank Offered Rate (LIBOR) [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
LIBOR rate | 0.00 | 0.00 |
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
LIBOR rate | 0.00 | 0.00 |
Benchmark Rate [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
LIBOR rate | 0.00 | |
WF-1 Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
LIBOR rate | 0.00 | |
WF-1 Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
LIBOR rate | 0.00 | |
GS-1 Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
LIBOR rate | 0.50 | |
GS-1 Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
LIBOR rate | 0.00 | 0.50 |
BB-1 Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
LIBOR rate | 0.50 | 0.50 |
BB-1 Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
LIBOR rate | 0.50 | 0.50 |
Debt instrument credit spread adjustment | 0.10% | |
MM1 Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
LIBOR rate | 0.11 |
Financing Arrangements - Summary of Based on the Maturity Date of each Financing Arrangement (Detail) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Schedule Of Maturities Of Long Term Debt [Line Items] | ||
2022 | $ 495,250 | |
2023 | 271,273 | |
2024 | 388,107 | |
2025 | 124,700 | |
2026 | 0 | |
Thereafter | 3,951,663 | |
Total | 5,230,993 | $ 3,007,241 |
Collateralized Loan Obligations [Member] | ||
Schedule Of Maturities Of Long Term Debt [Line Items] | ||
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
Thereafter | 3,226,226 | |
Total | 3,226,226 | 1,903,083 |
Repurchase Agreements [Member] | ||
Schedule Of Maturities Of Long Term Debt [Line Items] | ||
2022 | 495,250 | |
2023 | 221,273 | |
2024 | 388,107 | |
2025 | 0 | |
2026 | 0 | |
Thereafter | 74,299 | |
Total | 1,178,929 | 904,968 |
Revolving Credit Facility [Member] | ||
Schedule Of Maturities Of Long Term Debt [Line Items] | ||
2022 | 0 | |
2023 | 50,000 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
Thereafter | 651,138 | |
Total | 701,138 | $ 199,190 |
Mortgages [Member] | ||
Schedule Of Maturities Of Long Term Debt [Line Items] | ||
2022 | 0 | |
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 (Detail) $ in Thousands |
Jun. 30, 2022
USD ($)
Loans
|
---|---|
Disclosure In Tabular Form Of Number Of Collateral Loans And Principal Amount Of Obligation [Line Items] | |
Total Loans | Loans | 116 |
Principal | $ | $ 3,993,779 |
Collateralized Loan Obligations [Member] | 2019-FLI Notes [Member] | |
Disclosure In Tabular Form Of Number Of Collateral Loans And Principal Amount Of Obligation [Line Items] | |
Total Loans | Loans | 16 |
Principal | $ | $ 336,601 |
Collateralized Loan Obligations [Member] | 2021-FL2 Notes [Member] | |
Disclosure In Tabular Form Of Number Of Collateral Loans And Principal Amount Of Obligation [Line Items] | |
Total Loans | Loans | 28 |
Principal | $ | $ 782,978 |
Collateralized Loan Obligations [Member] | 2021-FL3 Notes [Member] | |
Disclosure In Tabular Form Of Number Of Collateral Loans And Principal Amount Of Obligation [Line Items] | |
Total Loans | Loans | 26 |
Principal | $ | $ 1,134,028 |
Collateralized Loan Obligations [Member] | 2022-FL4 Notes [Member] | |
Disclosure In Tabular Form Of Number Of Collateral Loans And Principal Amount Of Obligation [Line Items] | |
Total Loans | Loans | 23 |
Principal | $ | $ 1,077,573 |
Collateralized Loan Obligations [Member] | 2022-FL5 Notes [Member] | |
Disclosure In Tabular Form Of Number Of Collateral Loans And Principal Amount Of Obligation [Line Items] | |
Total Loans | Loans | 23 |
Principal | $ | $ 662,599 |
Financing Arrangements - Summary of the Issuance Costs and Discount to be Amortized (Detail) - Collateralized Loan Obligations [Member] $ in Thousands |
Jun. 30, 2022
USD ($)
|
---|---|
Disclosure In Tabular Form Of Unamortized Debt Issuance And Discount For Collateralized Loan Obligation [Line Items] | |
Issuance Costs and Discount to be Amortized | $ 27,057 |
2019-FLI Notes [Member] | |
Disclosure In Tabular Form Of Unamortized Debt Issuance And Discount For Collateralized Loan Obligation [Line Items] | |
Issuance Costs and Discount to be Amortized | 2,790 |
2021-FL2 Notes [Member] | |
Disclosure In Tabular Form Of Unamortized Debt Issuance And Discount For Collateralized Loan Obligation [Line Items] | |
Issuance Costs and Discount to be Amortized | 5,438 |
2021-FL3 Notes [Member] | |
Disclosure In Tabular Form Of Unamortized Debt Issuance And Discount For Collateralized Loan Obligation [Line Items] | |
Issuance Costs and Discount to be Amortized | 6,482 |
2022-FL4 Notes [Member] | |
Disclosure In Tabular Form Of Unamortized Debt Issuance And Discount For Collateralized Loan Obligation [Line Items] | |
Issuance Costs and Discount to be Amortized | 7,066 |
2022-FL5 Notes [Member] | |
Disclosure In Tabular Form Of Unamortized Debt Issuance And Discount For Collateralized Loan Obligation [Line Items] | |
Issuance Costs and Discount to be Amortized | $ 5,281 |
Financing Arrangements - Additional Information (Detail) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 |
May 05, 2022 |
Apr. 27, 2022 |
Mar. 04, 2022 |
Jun. 30, 2022 |
Dec. 31, 2021 |
Jun. 16, 2022 |
May 12, 2022 |
Mar. 31, 2022 |
Feb. 23, 2022 |
Feb. 11, 2022 |
Feb. 01, 2022 |
Jan. 26, 2022 |
Jul. 07, 2021 |
Jul. 06, 2021 |
|
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||||||||
Deferred financing costs | $ 647 | $ 647 | $ 658 | ||||||||||||
Long term debt gross | 5,230,993 | 5,230,993 | 3,007,241 | ||||||||||||
Mortgages [Member] | |||||||||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||||||||
Long term debt gross | 124,700 | 124,700 | |||||||||||||
Collateralized Loan Obligations [Member] | |||||||||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||||||||
Deferred financing costs | 27,057 | 27,057 | 16,701 | ||||||||||||
Well Fargo Securities LLC [Member] | Collateralized Loan Obligations [Member] | |||||||||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||||||||
Amortization expense od debt issuance cost | 1,367 | ||||||||||||||
WF-1 Facility [Member] | |||||||||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||||||||
Average borrowings | 3,672,968 | $ 1,346,445 | |||||||||||||
Maximum amount of financing available | 650,000 | 650,000 | $ 650,000 | $ 350,000 | |||||||||||
Increase in amount of financing available | 650,000 | $ 650,000 | |||||||||||||
Weighted Average Rate | 2.22% | 1.69% | |||||||||||||
GS-1 Facility [Member] | |||||||||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||||||||
Increase in amount of financing available | 350,000 | $ 350,000 | $ 500,000 | ||||||||||||
GS-1 Facility [Member] | Collateralized Loan Obligations [Member] | |||||||||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||||||||
Amortization expense od debt issuance cost | 335 | ||||||||||||||
GS-1 Facility [Member] | Minimum [Member] | |||||||||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||||||||
Increase in amount of financing available | $ 250,000 | ||||||||||||||
GS-1 Facility [Member] | Maximum [Member] | |||||||||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||||||||
Increase in amount of financing available | $ 350,000 | ||||||||||||||
CNB Facility [Member] | |||||||||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||||||||
Maximum amount of financing available | $ 100,000 | $ 55,000 | |||||||||||||
Increase in amount of financing available | 100,000 | $ 100,000 | |||||||||||||
CNB Facility [Member] | Collateralized Loan Obligations [Member] | |||||||||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||||||||
Amortization expense od debt issuance cost | 647 | ||||||||||||||
CNB Facility [Member] | LIBOR [Member] | |||||||||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||||||||
Unused capacity commitment fee percentage | 0.375% | ||||||||||||||
2022-FL5 Notes [Member] | Collateralized Loan Obligations [Member] | |||||||||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||||||||
Long term debt gross | $ 570,112 | ||||||||||||||
BB-1 Facility [Member] | |||||||||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||||||||
Maximum amount of financing available | $ 700,000 | ||||||||||||||
Funding period and term of facility | 3 years | ||||||||||||||
BB-1 Facility [Member] | Collateralized Loan Obligations [Member] | |||||||||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||||||||
Amortization expense od debt issuance cost | 1,576 | ||||||||||||||
BB-1 Facility [Member] | Maximum [Member] | |||||||||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||||||||
Increase in amount of financing available | $ 700,000 | ||||||||||||||
MM-1 Facility [Member] | |||||||||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||||||||
Maximum amount of financing available | 1,000,000 | $ 500,000 | $ 1,000,000 | ||||||||||||
Increase in amount of financing available | $ 1,000,000 | ||||||||||||||
Unused capacity commitment fee percentage | 85.00% | ||||||||||||||
Line of Credit Facility, Description | change of interest rate from LIBOR plus a spread of 2.05% to Term SOFR plus a spread of 2.025% plus a credit spread adjustment of 0.11%. | ||||||||||||||
MM-1 Facility [Member] | Collateralized Loan Obligations [Member] | |||||||||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||||||||
Deferred financing costs | 8,666 | $ 8,666 | |||||||||||||
MM-1 Facility [Member] | Minimum [Member] | |||||||||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||||||||
Increase in amount of financing available | $ 250,000 | 200,000 | |||||||||||||
Weighted Average Rate | 2.10% | ||||||||||||||
MM-1 Facility [Member] | Maximum [Member] | |||||||||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||||||||
Increase in amount of financing available | $ 500,000 | $ 250,000 | |||||||||||||
Weighted Average Rate | 2.05% | ||||||||||||||
Amended City National Bank Facility [Member] | |||||||||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||||||||
Line of credit facility interest rate Description | collateral coverage of 1.4 times for each dollar borrowed in excess of $50,000, | ||||||||||||||
Amended City National Bank Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||||||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||||||||
Line of credit facility interest rate Description | 2.25% plus a credit spread adjustment of 0.10%. | ||||||||||||||
Natixis Loan [Member] | Mortgages [Member] | |||||||||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||||||||
Maximum amount of financing available | 126,700 | 126,700 | |||||||||||||
Long term debt gross | 124,700 | 124,700 | |||||||||||||
Unamortized debt discount and issuance costs | $ 2,132 | $ 2,132 |
Related Party Transactions - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | 68 Months Ended | ||||
---|---|---|---|---|---|---|---|
Jun. 30, 2022 |
Dec. 31, 2021 |
Dec. 08, 2016 |
Jun. 30, 2022 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
|
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% | ||||||
Due to Related Parties | $ 92,665 | $ 48,514 | $ 92,665 | $ 92,665 | $ 92,665 | ||
Organization and offering costs | 18,737 | ||||||
Recoupment Payable | 1,460 | 62 | |||||
Recoupment Amount | 257 | ||||||
Payments to Acquire Mortgage-Backed Securities (MBS), Available-for-Sale | 112,073 | $ 19,575 | |||||
Affiliate of Rialto [Member] | Class E Notes mortgage-backed securities [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Payments to Acquire Mortgage-Backed Securities (MBS), Available-for-Sale | 36,000 | ||||||
Class D, Class M, Class I, Class F Or Class Y Shares [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Selling commissions or dealer manager fees payable | $ 0 | ||||||
Common Class F [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Performance fee percentage | 0.00% | ||||||
Investments Owned | $ 388 | $ 388 | $ 388 | $ 388 | |||
Maximum [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Organization and offering expenses reimbursement as percentage of gross proceeds from public offering | 15.00% | 15.00% | 15.00% | 15.00% | |||
FS Real Estate Advisor [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Base management fee percentage | 1.25% | ||||||
Base management fee description | 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. | ||||||
Minimum gross proceeds from public offering to reimburse expense | $ 250,000 | ||||||
Organization and offering expenses reimbursement as percentage of gross proceeds from public offering | 0.75% | 0.75% | 0.75% | 0.75% | |||
Due to Related Parties | $ 9,076 | $ 9,076 | $ 9,076 | $ 9,076 | |||
Investments Owned | $ 22,221 | $ 22,221 | 22,221 | $ 22,221 | |||
Payments To Related Party For Offering Costs Previously Funded | $ 6,999 | ||||||
FS Real Estate Advisor [Member] | Expense Limitation [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of minimum operating expenses to be waived or paid | 1.50% | ||||||
FS Real Estate Advisor [Member] | Common Class S [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Dealer manager upfront selling commissions fees percentage | 3.50% | ||||||
Stockholders servicing fee percentage on aggregate NAV of outstanding shares | 0.85% | ||||||
Stockholder servicing fees percentage | 8.75% | 8.75% | 8.75% | 8.75% | |||
FS Real Estate Advisor [Member] | Common Class T [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Dealer manager upfront selling commissions fees percentage | 3.00% | ||||||
Upfront dealer manager fees percentage | 0.50% | ||||||
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% | ||||||
Stockholder servicing fees percentage | 8.75% | 8.75% | 8.75% | 8.75% | |||
Selling commission and fee maximum percent | 3.50% | ||||||
FS Real Estate Advisor [Member] | Common Class D [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Stockholders servicing fee percentage on aggregate NAV of outstanding shares | 0.30% | ||||||
Stockholder servicing fees percentage | 1.25% | 1.25% | 1.25% | 1.25% | |||
FS Real Estate Advisor [Member] | Common Class M [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Stockholders servicing fee percentage on aggregate NAV of outstanding shares | 0.30% | ||||||
Stockholder servicing fees percentage | 7.25% | 7.25% | 7.25% | 7.25% | |||
FS Real Estate Advisor [Member] | Class T, Class T-C and Class M Shares [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Stockholder servicing fees percentage | 10.00% | 10.00% | 10.00% | 10.00% | |||
FS Real Estate Advisor [Member] | Class T, Class S, Class D and Class M Share [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Stockholder servicing fees percentage | 10.00% | 10.00% | 10.00% | 10.00% | |||
FS Real Estate Advisor [Member] | Maximum [Member] | Expense Limitation [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Period for which reimbursement payable | 3 years | ||||||
FS Real Estate Advisor and Rialto [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Reimbursement expenses due from sponsor | $ 0 | ||||||
Amount received as reimbursement | 5,839 | ||||||
Recoupment Payable | 482 | ||||||
Rialto [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Purchase of floating-rate whole mortgage loan | $ 5,839 | ||||||
FS Investments and Rialto [Member] | Private Placement [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Aggregate proceeds from private placement | $ 200 | ||||||
Number of common shares issued | 8,000 | ||||||
Common stock, price per share | $ 25 | $ 25 | $ 25 | $ 25 | |||
FS Investment Solutions [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Due to Related Parties | $ 91,206 | $ 48,514 | $ 91,206 | $ 91,206 | $ 91,206 |
Related Party Transactions - Summary of Fees and Expenses Accrued under Advisory Agreement (Detail) - Fs Real Estate Advisor [Member] - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Base Management Fees [Member] | ||||
Related Party Transaction [Line Items] | ||||
FS Real Estate Advisor | $ 5,351 | $ 1,285 | $ 9,196 | $ 2,321 |
Performance Fees [Member] | ||||
Related Party Transaction [Line Items] | ||||
FS Real Estate Advisor | 0 | 423 | 152 | 960 |
Administrative Services Expenses [Member] | ||||
Related Party Transaction [Line Items] | ||||
FS Real Estate Advisor | $ 3,565 | $ 652 | $ 5,224 | $ 1,448 |
Related Party Transactions - Summary of Fees and Expenses Accrued under Advisory Agreement (Parenthetical) (Detail) - Fs Real Estate Advisor [Member] - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Related Party Transaction [Line Items] | ||
Management Fee Payable | $ 0 | |
Cash [Member] | ||
Related Party Transaction [Line Items] | ||
Fees and expenses accrued | 2,007 | |
Payment Management Fees [Member] | ||
Related Party Transaction [Line Items] | ||
Fees and expenses accrued | 8,993 | |
Base Management Fees [Member] | ||
Related Party Transaction [Line Items] | ||
Fees and expenses accrued | 2,007 | $ 1,804 |
Performance Fee Payable | 0 | |
Performance Fees [Member] | ||
Related Party Transaction [Line Items] | ||
Fees and expenses accrued | 557 | 800 |
Administrative Services Expenses [Member] | ||
Related Party Transaction [Line Items] | ||
Fees and expenses accrued | $ 4,796 | $ 1,270 |
Related Party Transactions - Summary of reimbursed by FS Real Estate (Detail) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 |
Mar. 31, 2021 |
Dec. 31, 2020 |
Sep. 30, 2020 |
Jun. 30, 2020 |
Dec. 31, 2019 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Dec. 31, 2021 |
|
Schedule Of Expense Reimbursed [Line Items] | ||||||||||||||||
Expense Reimbursement | $ 0 | $ 56 | $ 444 | $ 397 | $ 182 | $ 500 | $ 491 | $ 420 | $ 537 | $ 709 | $ 645 | $ 561 | $ 356 | $ 377 | $ 164 | $ 5,839 |
Recoupable Amount | 0 | $ 56 | $ 201 | 257 | ||||||||||||
Recoupment eligibility expiration | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 | September 30, 2020 | ||
Recoupment Paid Or Payable | 0 | $ 243 | $ 397 | $ 182 | $ 500 | $ 491 | $ 420 | $ 537 | $ 62 | $ 8 | $ 390 | 3,230 | ||||
Recoupment Expired Amount | $ 0 | $ 647 | $ 637 | $ 171 | $ 356 | $ 377 | $ 164 | $ 2,352 |
Stockholder's Equity - Summary of Common Stock Transactions (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|||
Class of Stock [Line Items] | ||||||
Balance at beginning of period, amount | $ 1,388,142 | $ 363,335 | $ 973,340 | $ 305,712 | ||
Issuance of common stock, amount | 480,121 | 125,472 | 930,144 | 187,917 | ||
Reinvestment of distributions, amount | 12,521 | 2,912 | 21,895 | 5,154 | ||
Redemptions of common stock, amount | (32,597) | (1,792) | (56,771) | (5,233) | ||
Balance at end of period, amount | 1,821,230 | 483,487 | 1,821,230 | 483,487 | ||
Common Class Y [Member] | ||||||
Class of Stock [Line Items] | ||||||
Issuance of common stock, amount | 9 | 9 | ||||
Redemptions of common stock, amount | (1) | (1) | ||||
Common Class T [Member] | ||||||
Class of Stock [Line Items] | ||||||
Issuance of common stock, amount | 1 | 1 | 1 | |||
Common Class S [Member] | ||||||
Class of Stock [Line Items] | ||||||
Issuance of common stock, amount | 121 | 28 | 226 | 42 | ||
Reinvestment of distributions, amount | 3 | 1 | 5 | 1 | ||
Redemptions of common stock, amount | (9) | (13) | ||||
Common Class D [Member] | ||||||
Class of Stock [Line Items] | ||||||
Issuance of common stock, amount | 1 | 1 | 1 | |||
Common Class M [Member] | ||||||
Class of Stock [Line Items] | ||||||
Issuance of common stock, amount | 6 | 3 | 9 | 5 | ||
Redemptions of common stock, amount | (1) | (1) | (1) | (1) | ||
Common Class I [Member] | ||||||
Class of Stock [Line Items] | ||||||
Issuance of common stock, amount | 64 | 10 | 136 | 18 | ||
Reinvestment of distributions, amount | 2 | $ 1 | 3 | $ 1 | ||
Redemptions of common stock, amount | $ (3) | $ (8) | ||||
Common Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Balance at beginning of period, shares | 40,926,209 | 12,762,748 | ||||
Issuance of common stock, shares | 37,312,534 | 7,505,183 | ||||
Reinvestment of distributions, shares | 857,442 | 205,175 | ||||
Redemptions of common stock, shares | (2,278,898) | (210,037) | ||||
Transfers in or out, shares | 3,584 | 1,190 | ||||
Balance at end of period, shares | 76,820,871 | 20,264,259 | 76,820,871 | 20,264,259 | ||
Balance at beginning of period, amount | $ 971,310 | $ 303,827 | ||||
Issuance of common stock, amount | 930,144 | 187,917 | ||||
Reinvestment of distributions, amount | 21,895 | 5,154 | ||||
Redemptions of common stock, amount | (56,771) | (5,233) | ||||
Accrued stockholder servicing fees, amount | [1] | (46,428) | (9,476) | |||
Transfers in or out, amount | 0 | 0 | ||||
Balance at end of period, amount | $ 1,820,150 | $ 482,189 | $ 1,820,150 | $ 482,189 | ||
Common Stock [Member] | Common Class F [Member] | ||||||
Class of Stock [Line Items] | ||||||
Balance at beginning of period, shares | 902,878 | 912,469 | ||||
Issuance of common stock, shares | 0 | 0 | ||||
Reinvestment of distributions, shares | 14,613 | 15,638 | ||||
Redemptions of common stock, shares | (12,699) | (10,270) | ||||
Transfers in or out, shares | 0 | (6,392) | ||||
Balance at end of period, shares | 904,792 | 911,445 | 904,792 | 911,445 | ||
Balance at beginning of period, amount | $ 22,138 | $ 22,378 | ||||
Issuance of common stock, amount | 0 | 0 | ||||
Reinvestment of distributions, amount | 366 | 392 | ||||
Redemptions of common stock, amount | (318) | (258) | ||||
Accrued stockholder servicing fees, amount | [1] | 0 | 0 | |||
Transfers in or out, amount | 0 | (160) | ||||
Balance at end of period, amount | $ 22,186 | $ 22,352 | $ 22,186 | $ 22,352 | ||
Common Stock [Member] | Common Class Y [Member] | ||||||
Class of Stock [Line Items] | ||||||
Balance at beginning of period, shares | 906,648 | 137,116 | ||||
Issuance of common stock, shares | 0 | 843,659 | ||||
Reinvestment of distributions, shares | 0 | 0 | ||||
Redemptions of common stock, shares | 0 | (74,127) | ||||
Transfers in or out, shares | 0 | 0 | ||||
Balance at end of period, shares | 906,648 | 906,648 | 906,648 | 906,648 | ||
Balance at beginning of period, amount | $ 22,371 | $ 3,449 | ||||
Issuance of common stock, amount | 0 | 20,749 | ||||
Reinvestment of distributions, amount | 0 | 0 | ||||
Redemptions of common stock, amount | 0 | (1,827) | ||||
Accrued stockholder servicing fees, amount | [1] | 0 | 0 | |||
Transfers in or out, amount | 0 | 0 | ||||
Balance at end of period, amount | $ 22,371 | $ 22,371 | $ 22,371 | $ 22,371 | ||
Common Stock [Member] | Common Class T [Member] | ||||||
Class of Stock [Line Items] | ||||||
Balance at beginning of period, shares | 1,407,377 | 1,245,658 | ||||
Issuance of common stock, shares | 113,913 | 67,299 | ||||
Reinvestment of distributions, shares | 20,616 | 20,142 | ||||
Redemptions of common stock, shares | (31,495) | (20,042) | ||||
Transfers in or out, shares | (1,729) | (3,664) | ||||
Balance at end of period, shares | 1,508,682 | 1,309,393 | 1,508,682 | 1,309,393 | ||
Balance at beginning of period, amount | $ 33,862 | $ 29,971 | ||||
Issuance of common stock, amount | 2,846 | 1,690 | ||||
Reinvestment of distributions, amount | 515 | 505 | ||||
Redemptions of common stock, amount | (787) | (503) | ||||
Accrued stockholder servicing fees, amount | [1] | (113) | (57) | |||
Transfers in or out, amount | (44) | (92) | ||||
Balance at end of period, amount | $ 36,279 | $ 31,514 | $ 36,279 | $ 31,514 | ||
Common Stock [Member] | Common Class S [Member] | ||||||
Class of Stock [Line Items] | ||||||
Balance at beginning of period, shares | 22,823,721 | 5,778,640 | ||||
Issuance of common stock, shares | 22,528,563 | 4,222,421 | ||||
Reinvestment of distributions, shares | 516,751 | 106,935 | ||||
Redemptions of common stock, shares | (1,266,247) | (36,438) | ||||
Transfers in or out, shares | 0 | (1,684) | ||||
Balance at end of period, shares | 44,602,788 | 10,069,874 | 44,602,788 | 10,069,874 | ||
Balance at beginning of period, amount | $ 531,150 | $ 134,705 | ||||
Issuance of common stock, amount | 567,895 | 106,853 | ||||
Reinvestment of distributions, amount | 13,021 | 2,705 | ||||
Redemptions of common stock, amount | (31,901) | (922) | ||||
Accrued stockholder servicing fees, amount | [1] | (44,812) | (8,674) | |||
Transfers in or out, amount | 0 | (43) | ||||
Balance at end of period, amount | $ 1,035,353 | $ 234,624 | $ 1,035,353 | $ 234,624 | ||
Common Stock [Member] | Common Class D [Member] | ||||||
Class of Stock [Line Items] | ||||||
Balance at beginning of period, shares | 642,162 | 546,298 | ||||
Issuance of common stock, shares | 59,993 | 90,823 | ||||
Reinvestment of distributions, shares | 7,279 | 6,249 | ||||
Redemptions of common stock, shares | (18,465) | 0 | ||||
Transfers in or out, shares | (10,622) | (42,355) | ||||
Balance at end of period, shares | 680,347 | 601,015 | 680,347 | 601,015 | ||
Balance at beginning of period, amount | $ 15,945 | $ 13,573 | ||||
Issuance of common stock, amount | 1,501 | 2,282 | ||||
Reinvestment of distributions, amount | 182 | 157 | ||||
Redemptions of common stock, amount | (462) | 0 | ||||
Accrued stockholder servicing fees, amount | [1] | (15) | (18) | |||
Transfers in or out, amount | (265) | (1,065) | ||||
Balance at end of period, amount | $ 16,886 | $ 14,929 | $ 16,886 | $ 14,929 | ||
Common Stock [Member] | Common Class M [Member] | ||||||
Class of Stock [Line Items] | ||||||
Balance at beginning of period, shares | 2,876,736 | 1,971,039 | ||||
Issuance of common stock, shares | 1,052,345 | 436,462 | ||||
Reinvestment of distributions, shares | 31,546 | 23,427 | ||||
Redemptions of common stock, shares | (131,950) | (42,670) | ||||
Transfers in or out, shares | (127,149) | 0 | ||||
Balance at end of period, shares | 3,701,528 | 2,388,258 | 3,701,528 | 2,388,258 | ||
Balance at beginning of period, amount | $ 66,836 | $ 46,154 | ||||
Issuance of common stock, amount | 26,392 | 10,996 | ||||
Reinvestment of distributions, amount | 1,295 | 590 | ||||
Redemptions of common stock, amount | (3,307) | (1,072) | ||||
Accrued stockholder servicing fees, amount | [1] | (1,488) | (727) | |||
Transfers in or out, amount | (3,190) | 0 | ||||
Balance at end of period, amount | $ 86,538 | $ 55,941 | $ 86,538 | $ 55,941 | ||
Common Stock [Member] | Common Class I [Member] | ||||||
Class of Stock [Line Items] | ||||||
Balance at beginning of period, shares | 11,366,687 | 2,171,528 | ||||
Issuance of common stock, shares | 13,557,720 | 1,844,519 | ||||
Reinvestment of distributions, shares | 266,637 | 32,784 | ||||
Redemptions of common stock, shares | (818,042) | (26,490) | ||||
Transfers in or out, shares | 143,084 | 55,285 | ||||
Balance at end of period, shares | 24,516,086 | 4,077,626 | 24,516,086 | 4,077,626 | ||
Balance at beginning of period, amount | $ 279,008 | $ 53,597 | ||||
Issuance of common stock, amount | 331,510 | 45,347 | ||||
Reinvestment of distributions, amount | 6,516 | 805 | ||||
Redemptions of common stock, amount | (19,996) | (651) | ||||
Accrued stockholder servicing fees, amount | [1] | 0 | 0 | |||
Transfers in or out, amount | 3,499 | 1,360 | ||||
Balance at end of period, amount | $ 600,537 | $ 100,458 | $ 600,537 | $ 100,458 | ||
|
Stockholder's Equity - Additional Information (Detail) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended | |
---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Dec. 31, 2021 |
|
Percentage limited to repurchase of shares to NAV of all classes of shares | 20.00% | ||
Shares repurchased under repurchase plan | 2,278,898 | 210,037 | |
Shares repurchased under repurchase plan, value | $ 56,771 | $ 5,233 | |
Maximum [Member] | |||
Repurchase of shares to NAV of all classes of shares, percentage | 5.00% | ||
Minimum [Member] | |||
Repurchase of shares to NAV of all classes of shares, percentage | 2.00% | ||
Series A Preferred Stock [Member] | |||
Preferred Stock, Dividend Rate | 12.00% |
Stockholder's Equity - Summary of Cash Distributions Per Share that Paid on its Common Stock (Detail) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 29, 2022 |
May 27, 2022 |
Apr. 28, 2022 |
Mar. 30, 2022 |
Feb. 25, 2022 |
Jan. 28, 2022 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|||
Distributions: | ||||||||||||
Paid or payable in cash | $ 14,169 | $ 4,661 | $ 24,332 | $ 8,357 | ||||||||
Reinvested in shares | 12,521 | 2,912 | 21,895 | 5,154 | ||||||||
Total distributions | 26,690 | 7,573 | 46,227 | 13,511 | ||||||||
Cash flows from operating activities | 26,690 | 7,573 | 46,227 | 13,511 | ||||||||
Offering proceeds | 0 | 0 | 0 | 0 | ||||||||
Total sources of distributions | 26,690 | 7,573 | 46,227 | 13,511 | ||||||||
Net cash provided by (used in) operating activities | [1] | $ 27,196 | $ 9,619 | $ 48,925 | $ 33,038 | |||||||
Common Class F [Member] | ||||||||||||
Dividends Payable [Line Items] | ||||||||||||
Distributions paid per share of common stock | $ 0.161 | $ 0.161 | $ 0.161 | $ 0.161 | $ 0.161 | $ 0.161 | $ 0.966 | |||||
Common Class Y [Member] | ||||||||||||
Dividends Payable [Line Items] | ||||||||||||
Distributions paid per share of common stock | 0.161 | 0.161 | 0.161 | 0.161 | 0.161 | 0.161 | 0.966 | |||||
Common Class T [Member] | ||||||||||||
Dividends Payable [Line Items] | ||||||||||||
Distributions paid per share of common stock | 0.1173 | 0.1173 | 0.1173 | 0.1173 | 0.1173 | 0.1173 | 0.7038 | |||||
Common Class S [Member] | ||||||||||||
Dividends Payable [Line Items] | ||||||||||||
Distributions paid per share of common stock | 0.1173 | 0.1173 | 0.1173 | 0.1173 | 0.1173 | 0.1173 | 0.7038 | |||||
Common Class D [Member] | ||||||||||||
Dividends Payable [Line Items] | ||||||||||||
Distributions paid per share of common stock | 0.1288 | 0.1288 | 0.1288 | 0.1288 | 0.1288 | 0.1288 | 0.7728 | |||||
Common Class M [Member] | ||||||||||||
Dividends Payable [Line Items] | ||||||||||||
Distributions paid per share of common stock | 0.1288 | 0.1288 | 0.1288 | 0.1288 | 0.1288 | 0.1288 | 0.7728 | |||||
Common Class I [Member] | ||||||||||||
Dividends Payable [Line Items] | ||||||||||||
Distributions paid per share of common stock | $ 0.135 | $ 0.135 | $ 0.135 | $ 0.135 | $ 0.135 | $ 0.135 | $ 0.81 | |||||
|
Stockholder's Equity - Schedule of Cash Distribution On Class of Common Stock (Detail) |
1 Months Ended |
---|---|
Jul. 31, 2022
$ / shares
| |
Common Class F [Member] | |
Class of Stock [Line Items] | |
Distributions declared per share for each class of outstanding common stock | $ 0.161 |
Common Class Y [Member] | |
Class of Stock [Line Items] | |
Distributions declared per share for each class of outstanding common stock | 0.161 |
Common Class T [Member] | |
Class of Stock [Line Items] | |
Distributions declared per share for each class of outstanding common stock | 0.1173 |
Common Class S [Member] | |
Class of Stock [Line Items] | |
Distributions declared per share for each class of outstanding common stock | 0.1173 |
Common Class D [Member] | |
Class of Stock [Line Items] | |
Distributions declared per share for each class of outstanding common stock | 0.1288 |
Common Class M [Member] | |
Class of Stock [Line Items] | |
Distributions declared per share for each class of outstanding common stock | 0.1288 |
Common Class I [Member] | |
Class of Stock [Line Items] | |
Distributions declared per share for each class of outstanding common stock | $ 0.135 |
Fair Value of Financial Instruments - Summary Of Company Financial Instruments Carried At Fair Value In The Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Mortgage-backed securities available-for-sale | $ 153,274 | $ 44,518 |
Interest rate cap | 2,518 | 0 |
Fair Value, Inputs, Level 1 [Member] | ||
Mortgage-backed securities available-for-sale | 0 | 0 |
Interest rate cap | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Mortgage-backed securities available-for-sale | 153,274 | 44,518 |
Interest rate cap | 2,518 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Mortgage-backed securities available-for-sale | 0 | 0 |
Interest rate cap | $ 0 | $ 0 |
Fair Value of Financial Instruments - Summary of Carrying Amount, Face Amount, and Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
||||
---|---|---|---|---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Mortgage-backed securities held-to-maturity | $ 78,942 | $ 37,862 | ||||
Collateralized loan obligations | 3,193,515 | 1,886,382 | ||||
Reported Value Measurement [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Cash, cash equivalents and restricted cash | 94,770 | 85,808 | ||||
Loans receivable—held-for-investment | [1] | 6,538,370 | 3,841,868 | |||
Mortgage-backed securities held-to-maturity | 78,942 | 37,862 | ||||
Repurchase agreements | [2] | 1,175,651 | 903,010 | |||
Credit facilities | 692,472 | 196,960 | ||||
Collateralized loan obligations | [2] | 3,193,515 | 1,886,382 | |||
Mortgage note payable | [2] | 122,568 | 0 | |||
Portion at Other than Fair Value Measurement [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Cash, cash equivalents and restricted cash | 94,770 | 85,808 | ||||
Loans receivable—held-for-investment | [1] | 6,539,424 | 3,843,110 | |||
Mortgage-backed securities held-to-maturity | 159,543 | 50,300 | ||||
Repurchase agreements | [2] | 1,178,929 | 904,968 | |||
Credit facilities | 701,138 | 199,190 | ||||
Collateralized loan obligations | [2] | 3,220,572 | 1,903,083 | |||
Mortgage note payable | [2] | 124,700 | 0 | |||
Estimate of Fair Value Measurement [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Cash, cash equivalents and restricted cash | 94,770 | 85,808 | ||||
Loans receivable—held-for-investment | [1] | 6,541,502 | 3,844,685 | |||
Mortgage-backed securities held-to-maturity | 78,942 | 37,862 | ||||
Repurchase agreements | [2] | 1,178,929 | 904,968 | |||
Credit facilities | 701,138 | 199,190 | ||||
Collateralized loan obligations | [2] | 3,220,572 | 1,903,083 | |||
Mortgage note payable | [2] | $ 124,700 | $ 0 | |||
|
Variable Interest Entities - Schedule of detailed information about the assets and liabilities (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
||
---|---|---|---|---|
Variable Interest Entity [Line Items] | ||||
VIE Assets | [1] | $ 7,135,412 | $ 4,024,394 | |
VIE Liabilities | [1] | 5,314,182 | 3,051,054 | |
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Variable Interest Entity [Line Items] | ||||
VIE Assets | 4,033,871 | 2,347,510 | ||
VIE Liabilities | 3,197,715 | 1,887,944 | ||
Restricted cash [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Variable Interest Entity [Line Items] | ||||
VIE Assets | 4,153 | 37,364 | ||
Loans receivable, held-for-investment [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Variable Interest Entity [Line Items] | ||||
VIE Assets | 3,992,448 | 2,298,367 | ||
Interest receivable [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Variable Interest Entity [Line Items] | ||||
VIE Assets | 9,576 | 5,154 | ||
Other Assets [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Variable Interest Entity [Line Items] | ||||
VIE Assets | 27,694 | 6,625 | ||
Collateralized loan obligation [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Variable Interest Entity [Line Items] | ||||
VIE Liabilities | 3,193,515 | 1,886,382 | ||
Interest payable [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Variable Interest Entity [Line Items] | ||||
VIE Liabilities | 3,988 | 1,357 | ||
Other Liabilities [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Variable Interest Entity [Line Items] | ||||
VIE Liabilities | $ 212 | $ 205 | ||
|
Variable Interest Entities - Schedule of detailed information about the assets and liabilities (Parenthetical) (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Deferred financing cost [Member] | ||
Variable Interest Entity [Line Items] | ||
Deferred Offering Costs | $ 27,057 | $ 16,701 |
Variable Interest Entities - Additional Information (Detail) - Variable Interest Entity, Not Primary Beneficiary [Member] - Commercial Mortgage Backed Securities $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2022
USD ($)
| |
Variable Interest Entity [Line Items] | |
Payments to Acquire Equity Method Investments | $ 67,005 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | $ 78,942 |
Intangibles - Schedule of Finite Lived Intangible Assets (Detail) - Other Noncurrent Assets [Member] $ in Thousands |
Jun. 30, 2022
USD ($)
|
[1] | ||
---|---|---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | $ 33,091 | |||
Leases, Acquired-in-Place [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | $ 33,091 | |||
|
Intangibles - Schedule of Finite Lived Intangible Assets Future Amortization Expense (Detail) $ in Thousands |
Jun. 30, 2022
USD ($)
|
---|---|
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
2022 (remaining) | $ 1,907 |
2023 | 3,814 |
2024 | 3,814 |
2025 | 3,814 |
2026 | 3,806 |
2027 | 3,803 |
Thereafter | 12,133 |
Total | $ 33,091 |
Derivative Instruments - Summary of Derivative Instruments (Detail) - Interest Rate Cap [Member] $ in Thousands |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2022
USD ($)
| ||||
Derivative [Line Items] | ||||
Notional Amount | $ 126,700 | |||
Strike | 2.25% | |||
Effective Date | Jun. 21, 2022 | |||
Maturity Date | Jul. 09, 2024 | |||
Fair Value | $ 2,518 | [1] | ||
|
Derivative Instruments - Summary of Fair Value of the Company Derivative Financial Instrument (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Unrealized Gain (Loss) on Derivatives | $ (1,449) | $ (1,449) | ||||
Interest Rate Cap [Member] | Not Designated as Hedging Instrument [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Unrealized Gain (Loss) on Derivatives | [1] | $ (1,449) | $ 0 | $ (1,449) | $ 0 | |
|
Subsequent Events - Additional Information (Detail) $ in Thousands |
6 Months Ended | ||||
---|---|---|---|---|---|
Aug. 05, 2022
USD ($)
shares
|
Aug. 01, 2022
USD ($)
Ratio
|
Jun. 30, 2022
USD ($)
shares
|
Jun. 30, 2021
USD ($)
|
Dec. 31, 2021
USD ($)
shares
|
|
Subsequent Event [Line Items] | |||||
Common stock shares issued | $ | $ 930,144 | $ 187,917 | |||
Line of credit facility, remaining borrowing capacity | $ | $ 996,232 | $ 232,358 | |||
Common Class F [Member] | |||||
Subsequent Event [Line Items] | |||||
Common stock, shares issued | 904,792 | 902,878 | |||
Common Class Y [Member] | |||||
Subsequent Event [Line Items] | |||||
Common stock, shares issued | 906,648 | 906,648 | |||
Common Class T [Member] | |||||
Subsequent Event [Line Items] | |||||
Common stock, shares issued | 1,508,682 | 1,407,377 | |||
Common Class S [Member] | |||||
Subsequent Event [Line Items] | |||||
Common stock, shares issued | 44,602,788 | 22,823,721 | |||
Common Class D [Member] | |||||
Subsequent Event [Line Items] | |||||
Common stock, shares issued | 680,347 | 642,162 | |||
Common Class M [Member] | |||||
Subsequent Event [Line Items] | |||||
Common stock, shares issued | 3,701,528 | 2,876,736 | |||
Common Class I [Member] | |||||
Subsequent Event [Line Items] | |||||
Common stock, shares issued | 24,516,086 | 11,366,687 | |||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Common stock shares issued | $ | $ 2,306,777 | ||||
Subsequent Event [Member] | Barclay Revolving Credit Facility [Member] | |||||
Subsequent Event [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ | $ 310,000 | ||||
Line of credit facility, remaining borrowing capacity | $ | $ 155,000 | ||||
Debt instrument, term | 1 year | ||||
Line of credit facility, expiration date | Aug. 01, 2025 | ||||
Percentage of increase decrease in basis spread rate during period | 0.25% | ||||
Minimum tangible net | $ | $ 1,367,009 | ||||
Percentage of net cash proceeds from any offering of the company's capital stock | 75.00% | ||||
Percentage of cash used by the company to repurchase any of its capital stock after the closing date | 50.00% | ||||
Subsequent Event [Member] | Barclay Revolving Credit Facility [Member] | Minimum [Member] | |||||
Subsequent Event [Line Items] | |||||
Line of credit facility, interest rate during period | 1.25% | ||||
Line of credit facility, unused capacity, commitment fee percentage | 0.25% | ||||
Percentage of the maximum committed amount is undrawn | 50.00% | ||||
Minimum fixed charge coverage ratio | Ratio | 1 | ||||
Maximum debt to equity ratio | Ratio | 1 | ||||
Interest coverage ratio | Ratio | 1 | ||||
Subsequent Event [Member] | Barclay Revolving Credit Facility [Member] | Maximum [Member] | |||||
Subsequent Event [Line Items] | |||||
Line of credit facility, interest rate during period | 2.25% | ||||
Line of credit facility, unused capacity, commitment fee percentage | 0.35% | ||||
Percentage of the maximum committed amount is undrawn | 50.00% | ||||
Minimum fixed charge coverage ratio | Ratio | 1.5 | ||||
Minimum liquidity amount | $ | $ 10,000 | ||||
Maximum debt to equity ratio | Ratio | 3.5 | ||||
Interest coverage ratio | Ratio | 1.5 | ||||
Subsequent Event [Member] | Common Class F [Member] | |||||
Subsequent Event [Line Items] | |||||
Common stock, shares issued | 2,629,044 | ||||
Subsequent Event [Member] | Common Stock [Member] | |||||
Subsequent Event [Line Items] | |||||
Common stock, shares issued | 92,410,687 | ||||
Subsequent Event [Member] | Common Class Y [Member] | |||||
Subsequent Event [Line Items] | |||||
Common stock, shares issued | 1,036,671 | ||||
Subsequent Event [Member] | Common Class T [Member] | |||||
Subsequent Event [Line Items] | |||||
Common stock, shares issued | 1,685,871 | ||||
Subsequent Event [Member] | Common Class S [Member] | |||||
Subsequent Event [Line Items] | |||||
Common stock, shares issued | 51,221,317 | ||||
Subsequent Event [Member] | Common Class D [Member] | |||||
Subsequent Event [Line Items] | |||||
Common stock, shares issued | 783,331 | ||||
Subsequent Event [Member] | Common Class M [Member] | |||||
Subsequent Event [Line Items] | |||||
Common stock, shares issued | 4,502,874 | ||||
Subsequent Event [Member] | Common Class I [Member] | |||||
Subsequent Event [Line Items] | |||||
Common stock, shares issued | 30,551,579 |
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