InPoint Commercial Real Estate Income Inc

Previous wording

These forward-looking statements are not historical facts but reflect the intent, belief or current expectations of the management of InPoint Commercial Real Estate Income, Inc. (which we refer to herein as the “Company,” “we,” “our” or “us”) based on their knowledge and understanding of the business and industry, the economy and other future conditions. These statements are not guarantees of future performance, and we caution stockholders not to place undue reliance on forward-looking statements. Actual results may differ materially from those expressed or forecasted in the forward-looking statements due to a variety of risks, uncertainties and other factors, including but not limited to the factors listed and described under “Risk Factors” in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC on March 15, 2024 (the “Annual Report”), some of which are briefly summarized below:

Current wording

These forward-looking statements are not historical facts but reflect the intent, belief or current expectations of the management of InPoint Commercial Real Estate Income, Inc. (which we refer to herein as the “Company,” “we,” “our” or “us”) based on their knowledge and understanding of the business and industry, the economy and other future conditions. These statements are not guarantees of future performance, and we caution stockholders not to place undue reliance on forward-looking statements. Actual results may differ materially from those expressed or forecasted in the forward-looking statements due to a variety of risks, uncertainties and other factors, including but not limited to the factors listed and described under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC on March 15, 2024 (the “Annual Report”) and subsequent Quarterly Reports on Form 10-Q, some of which are briefly summarized below:

Previous wording

The following discussion and analysis relate to the three and six months ended June 30, 2024 and 2023 and as of June 30, 2024 and December 31, 2023. You should read the following discussion and analysis along with our unaudited consolidated financial statements and the related notes included in this Quarterly Report on Form 10-Q.

Current wording

The following discussion and analysis relate to the three and nine months ended September 30, 2024 and 2023 and as of September 30, 2024 and December 31, 2023. You should read the following discussion and analysis along with our unaudited consolidated financial statements and the related notes included in this Quarterly Report on Form 10-Q.

Previous wording

In response to inflationary pressures, in 2022 the Federal Reserve began raising its federal funds rate target range and indicated that, due to the persistent high rate of inflation, it would continue to increase rates until a 2% inflation rate is achieved. The Federal Reserve has also been conducting monetary tightening by increasing the sale of bonds it had purchased on the open market. During the third quarter of 2023, the Federal Reserve paused its increase in interest rates to evaluate the impact that the rate increases have had on inflation. Market consensus has been predicting that the Federal Reserve may begin reducing rates in 2024, however the Federal Reserve has not signaled when a decrease may happen. The economic data from the first half of 2024 has shown that inflation continues to be above the Federal Reserve’s 2.0% target. We expect that the commercial real estate market will continue to experience pressure due to the current interest rate environment, and it may take several quarters and/or rate decreases for the market to improve.

Current wording

In response to inflationary pressures, in 2022 the Federal Reserve began raising its federal funds rate target range and indicated that, due to the persistent high rate of inflation, it would continue to increase rates until a 2% inflation rate is achieved. The Federal Reserve has also been conducting monetary tightening by increasing the sale of bonds it had purchased on the open market. During the third quarter of 2023, the Federal Reserve paused its increase in interest rates to evaluate the impact that the rate increases have had on inflation. In September 2024, the Federal Reserve lowered the target range for the federal funds 50 basis points to 4-3/4 to 5 percent and indicated that an additional 50 basis point decrease may occur in the fourth quarter of 2024. We expect that the impact of these rate decreases will be positive for the commercial real estate market as the decrease in debt service cost will improve property performance.

Previous wording

We did not originate any new loans in 2023 or during the first six months of 2024 as we chose to focus on maintaining our liquidity. We anticipate this to continue through the remainder of 2024. The commercial real estate lending market tightened as the Federal Reserve raised rates and lenders concerns over property performance increased. Concerns over office properties continue as tenants evaluate the amount of space they need with more employees working from home. In general, property valuations have decreased as capitalization rates for commercial real estate assets have increased with overall interest rates.

Current wording

We did not originate any new loans in 2023 or during the first nine months of 2024 as we chose to focus on maintaining our liquidity. We anticipate this to continue through the remainder of 2024. The commercial real estate lending market tightened as the Federal Reserve raised rates and lenders concerns over property performance increased. Concerns over office properties continue as tenants evaluate the amount of space they need with more employees working from home. In general, property valuations have decreased as capitalization rates for commercial real estate assets have increased with overall interest rates. We anticipate this will begin to improve as the market adjusts to the lower interest rates.

Previous wording

We continue to evaluate all loans on a quarterly basis and assign our internal risk rating with the majority of our loans continuing to perform as expected. While there has been some increase in competition for new loans in the first six months of 2024, refinancing risk continues to be a focus. As such, for our CECL reserve, we have placed additional focus on loans with maturity dates up to nine months from the quarter end to determine if the collateral value would be sufficient to cover the outstanding loan principal balance and have recorded an asset-specific CECL reserve when necessary.

Current wording

We continue to evaluate all loans on a quarterly basis and assign our internal risk rating with the majority of our loans continuing to perform as expected. While there has been some increase in competition for new loans in the first nine months of 2024, refinancing risk continues to be a focus. As such, for our CECL reserve, we have placed additional focus on loans with maturity dates up to nine months from the quarter end to determine if the collateral value would be sufficient to cover the outstanding loan principal balance and have recorded an asset-specific CECL reserve when necessary.

Previous wording

Net income attributable to common stockholders was $3.5 million, or $0.35 per share, during the three months ended June 30, 2024, which included $1.1 million in reversal of credit losses.

Current wording

Net loss attributable to common stockholders was $0.9 million, or $0.09 per share, during the three months ended September 30, 2024, which included $3.7 million in provision for credit losses.

Previous wording

During the second quarter of 2024, we paid an annual gross distribution rate of $1.25 per common share, which represents an annualized rate of 7.5% on our aggregate NAV of $16.5986 as of June 30, 2024. Holders of Class D and Class T shares of common stock received less than the gross distribution amount after the deduction of stockholder servicing fees applicable to those classes.

Current wording

During the third quarter of 2024, we paid an annual gross distribution rate of $1.25 per common share, which represents an annualized rate of 7.6% on our aggregate NAV of $16.4992 as of September 30, 2024. Holders of Class D and Class T shares of common stock received less than the gross distribution amount after the deduction of stockholder servicing fees applicable to those classes.

Previous wording

We had $1.9 million in advances on previously originated loans and loan repayments of $11.2 million resulting in a 1.2% decrease in our loan portfolio to $684.4 million during the three months ended June 30, 2024. The decrease is net of $1.1 million of reversal of credit losses.

Current wording

We had $2.6 million in advances on previously originated loans and loan repayments of $6.4 million resulting in a 6.5% decrease in our loan portfolio to $640.0 million during the three months ended September 30, 2024. The decrease also includes $13.7 million related to the sale of a loan, $3.7 million of provision for credit losses and a loan transferred on foreclosure to real estate owned of $24.4 million.

Previous wording

30 out of our 33 loans were current on their contractual interest payments with no interest deferrals during the three months ended June 30, 2024.

Current wording

27 out of our 30 loans were current on their contractual interest payments with no interest deferrals during the three months ended September 30, 2024.

Previous wording

3 out of our 33 loans were placed on nonaccrual status. After being placed on nonaccrual status, any cash collected, including any interest payments, on such loans is applied against their principal balance.

Current wording

As of September 30, 2024, 2 out of our 30 loans were placed on nonaccrual status. After being placed on nonaccrual status, any cash collected, including any interest payments, on such loans is applied against their principal balance.

Previous wording

The charts below summarize our debt investments portfolio as a percentage of par value by type of rate, our total investment portfolio by investment type and our loan portfolio by collateral type and geographical region as of June 30, 2024 and December 31, 2023:

Current wording

The charts below summarize our debt investments portfolio as a percentage of par value by type of rate, our total investment portfolio by investment type, including real estate owned (“REO”), and our loan portfolio by collateral type and geographical region as of September 30, 2024 and December 31, 2023:

Previous wording

The changes in our loan portfolio by property type and by region as of June 30, 2024 compared to December 31, 2023 were primarily due to loans that were repaid by borrowers in ordinary course.

Current wording

The changes in our loan portfolio by property type and by region as of September 30, 2024 compared to December 31, 2023 were primarily due to sale of a loan, transfer of a loan to REO upon foreclosure, and loans that were repaid by borrowers in ordinary course.

Previous wording

The decrease in the size of our portfolio is primarily due to loan payoffs with no new loans originated during the six months ended June 30, 2024. The decrease in the all-in yield was primarily driven by the three loans placed on nonaccrual status.

Current wording

The decrease in the size of our portfolio is primarily due to loan payoffs, foreclosure of a loan, and a sale of a loan with no new loans originated during the nine months ended September 30, 2024. The decrease in the all-in yield was primarily driven by the loans placed on nonaccrual status.

Previous wording

As of June 30, 2024, an 80% undivided senior interest in each of loan numbers 1, 2, 3, and 7, which includes the right to receive priority interest payments at a rate of one-month term USD Secured Overnight Financing Rate (“SOFR”)+2.00%, was sold by our Operating Partnership pursuant to a Loan Participation Agreement dated November 15, 2021. Our Operating Partnership has retained a 20% undivided subordinate interest in each of these loans.

Current wording

As of September 30, 2024, an 80% undivided senior interest in each of loan numbers 1, 2, and 6, which includes the right to receive priority interest payments at a rate of one-month term USD Secured Overnight Financing Rate (“SOFR”)+2.00%, was sold by our Operating Partnership pursuant to a Loan Participation Agreement dated November 15, 2021. Our Operating Partnership has retained a 20% undivided subordinate interest in each of these loans.

Previous wording

Cash coupon is the stated rate on the loan. All-in yield is the present value of all future principal and interest payments on the loan and does not include any origination fees or deferred commitment fees. Loan numbers 2, 9 and 13 are on nonaccrual basis as of June 30, 2024 and excluded from the total. The total is the weighted average of the stated yield, excluding any default interest, as of June 30, 2024. Our first mortgage loans are all floating rate and each contains a minimum SOFR floor. As of June 30, 2024, the weighted average SOFR floor was 0.69%.

Current wording

Cash coupon is the stated rate on the loan. All-in yield is the present value of all future principal and interest payments on the loan and does not include any origination fees or deferred commitment fees. Loan numbers 10 and 30 are on nonaccrual basis as of September 30, 2024 and excluded from the total. Loan number 6 is paying interest at a 4.0% fixed current rate and accruing the remaining amount as payment-in-kind. The total is the weighted average of the stated yield, excluding any default interest, as of September 30, 2024. Our first mortgage loans are all floating rate and each contains a minimum SOFR floor. As of September 30, 2024, the weighted average SOFR floor was 0.65%.

Previous wording

The loan matured on April 9, 2023 and is currently accruing default interest. The Company is negotiating an extension to allow the borrower to obtain long-term financing. The Company expects to complete the loan extension in the third quarter of 2024. The property securing the loan is class A office and is 91% occupied as of May 31, 2024. The Company has reviewed the loan and based on the current estimated LTV does not believe the loan is impaired.

Current wording

The loan matured on April 9, 2023 and is currently accruing default interest. The Company is negotiating an extension to allow the borrower to obtain long-term financing. The Company expects to complete the loan extension in the fourth quarter of 2024. The property securing the loan is class A office and is 90% occupied as of September 30, 2024. The Company has reviewed the loan and based on the current estimated LTV does not believe the loan is impaired.

Previous wording

The loan matured on May 9, 2024. The Company was unable to negotiate an additional loan extension or pay-off with the sponsor. The Company has begun the foreclosure process with respect to the underlying property and expects to complete the process in October 2024. The loan is on nonaccrual status and based on the estimated LTV, the Company recorded a $6.9 million asset-specific CECL reserve as of June 30, 2024.

Current wording

The loan matured on May 9, 2024. The Company was unable to negotiate an additional loan extension or pay-off with the sponsor. The loan was on nonaccrual status and based on the estimated LTV, the Company recorded a $9.9 million asset-specific CECL reserve as of September 30, 2024. On October 23, 2024, the Company acquired the legal title to the underlying property through a non-judicial foreclosure transaction.

Previous wording

The loan has no unfunded commitment and matures on October 6, 2024. The borrower is current on all debt service payments. The property is occupied by a single tenant that is exiting the property at the end of its lease. The Company believes that the sponsor will have difficulty refinancing or repaying the loan at maturity without a long-term tenant. The Company has recorded a $4.0 million asset-specific CECL reserve on this loan as of June 30, 2024. The loan was placed on nonaccrual status effective July 1, 2024.

Current wording

The loan has no unfunded commitment and matured on October 6, 2024. The borrower is current on all debt service payments. The property is occupied by a single tenant that is possibly exiting the property at the end of its lease. The Company has negotiated with the borrower a possible repayment at an amount less than the outstanding balance. The Company has recorded a $4.0 million asset-specific CECL reserve on this loan as of September 30, 2024. The loan was placed on nonaccrual status effective July 1, 2024.

Previous wording

We entered into master repurchase agreements to fund our loan portfolio. As of June 30, 2024 and December 31, 2023, we had total borrowings of $422,944 (which is net of $0 unamortized debt issuance costs) and $457,438 (which is net of $0 of unamortized debt issuance costs), respectively. During the six months ended June 30, 2024 and the year ended December 31, 2023, we had weighted average borrowings of $499,552 and $562,396 and weighted average borrowing costs of 7.5% and 7.4%, respectively.

Current wording

We entered into master repurchase agreements to fund our loan portfolio. As of September 30, 2024 and December 31, 2023, we had total borrowings of $418,765 (which is net of $0 unamortized debt issuance costs) and $457,438 (which is net of $0 of unamortized debt issuance costs), respectively. During the nine months ended September 30, 2024 and the year ended December 31, 2023, we had weighted average borrowings of $472,163 and $562,396 and weighted average borrowing costs of 7.8% and 7.4%, respectively.

Previous wording

Based on principal amount for repurchase agreements. Amounts are calculated based on the average daily balance.

Current wording

Based on principal amount for repurchase agreements. Amounts are calculated based on the average daily balance. Loan participations sold excludes the participation interest related to the REO.

Previous wording

Interest income excludes $582 and $130 for the three months ended June 30, 2024 and 2023, respectively, related to bank deposits not included in the investment portfolio.

Current wording

Interest income excludes $500 and $172 for the three months ended September 30, 2024 and 2023, respectively, related to bank deposits not included in the loan portfolio. Interest expense excludes $360 of participation payments related to the REO.

Previous wording

The change in our average interest-earning assets and interest-bearing liabilities was due to loan maturities. The change in the weighted average levered yield was primarily due to the three loans that were placed on nonaccrual status.

Current wording

The change in our average interest-earning assets and interest-bearing liabilities was due to loan maturities and foreclosure. The change in the weighted average levered yield was primarily due to the loans that were placed on nonaccrual status.

Previous wording

Net operating expenses for the three months ended June 30, 2024 and 2023 were $1,723 and $13,899, respectively. The primary driver of the decrease in net operating expenses was the sale of Renaissance O’Hare in September 2023.

Current wording

Net operating expenses for the three months ended September 30, 2024 and 2023 were $3,209 and $5,567, respectively. The primary driver of the decrease in net operating expenses was the sale of Renaissance O’Hare in September 2023.

Previous wording

Comparison of the Six Months Ended June 30, 2024 to the Six Months Ended June 30, 2023

Current wording

Comparison of the Nine Months Ended September 30, 2024 to the Nine Months Ended September 30, 2023

Previous wording

Based on principal amount for repurchase agreements. Amounts are calculated based on the average daily balance.

Current wording

Based on principal amount for repurchase agreements. Amounts are calculated based on the average daily balance. Loan participations sold excludes the participation interest related to the REO.

Previous wording

Interest income excludes $1,220 and $193 for the six months ended June 30, 2024 and 2023, respectively, related to bank deposits not included in the investment portfolio.

Current wording

Interest income excludes $1,720 and $365 for the nine months ended September 30, 2024 and 2023, respectively, related to bank deposits not included in the loan portfolio. Interest expense excludes $360 of participation payments related to the REO.

Previous wording

The change in our average interest-earning assets and interest-bearing liabilities was due to loan maturities. The change in the weighted average levered yield was primarily due to the three loans that were placed on nonaccrual status.

Current wording

The change in our average interest-earning assets and interest-bearing liabilities was due to loan maturities and foreclosure. The change in the weighted average levered yield was primarily due to the loans that were placed on nonaccrual status.

Previous wording

Net operating expenses for the six months ended June 30, 2024 and 2023 consisted of the following:

Current wording

Net operating expenses for the nine months ended September 30, 2024 and 2023 consisted of the following:

Previous wording

Net operating expenses for the six months ended June 30, 2024 and 2023 were $3,623 and $19,223, respectively. The primary driver of the decrease in net operating expenses was the sale of Renaissance O’Hare in September 2023.

Current wording

Net operating expenses for the nine months ended September 30, 2024 and 2023 were $6,832 and $24,790, respectively. The primary driver of the decrease in net operating expenses was the sale of Renaissance O’Hare in September 2023.

Previous wording

For the three months ended June 30, 2024 and 2023, our net income (loss) was $4,990 and $(15,335), respectively. The increase in net income was primarily due to a reversal of credit losses of $1,086 in 2024 compared to $13,364 in provision for credit losses in 2023 and $6,934 in provision for asset impairment related to the sale of Renaissance O’Hare in 2023 with no comparable activity in 2024.

Current wording

For the nine months ended September 30, 2024 and 2023, our net income (loss) was $9,004 and $(5,722), respectively. The increase in net income was primarily due to the loss on the sale of the Renaissance O’Hare recognized in 2023 and a comparatively larger provision for credit losses recognized in the nine months ending September 30, 2023.

Previous wording

Our presentation of FFO and MFFO may not be comparable to other similarly titled measures presented by other REITs. We believe that the use of FFO and MFFO provides a more complete understanding of our operating performance to stockholders and to management, and when compared year over year, reflects the impact on our operations from trends in operating costs, general and administrative expenses, and interest costs. Neither FFO nor MFFO is intended to be an alternative to “net income” or to “cash flows from operating activities” as determined by GAAP as a measure of our capacity to pay distributions. Management uses FFO and MFFO to compare our operating performance to that of other REITs and to assess our operating performance.

Current wording

Our presentation of FFO and MFFO may not be comparable to other similarly titled measures presented by other REITs. We believe that the use of FFO and MFFO provides a more complete understanding of our operating performance to stockholders and to management, and when compared year over year, reflects the impact on our operations from trends in occupancy rates, rental rates, operating costs, general and administrative expenses, and interest costs. Neither FFO nor MFFO is intended to be an alternative to “net income” or to “cash flows from operating activities” as determined by GAAP as a measure of our capacity to pay distributions. Management uses FFO and MFFO to compare our operating performance to that of other REITs and to assess our operating performance.

Previous wording

Our valuation reports will not be addressed to the public and may not be relied upon by any other person to establish an estimated value of our common stock and will not constitute a recommendation to any person to purchase or sell any shares of our common stock. In preparing our NAV calculation, our Advisor will not solicit third-party indications of interest for our common stock in connection with possible purchases thereof or the acquisition of all or any part of our company. Real estate appraisals are reported on a free and clear basis (for example no mortgage), irrespective of any property-level financing that may be in place. The primary methodology used to value properties is the income approach, whereby value is derived by determining the present value of an asset’s stream of future cash flows (for example, discounted cash flow analysis). Consistent with industry practices, the income approach incorporates subjective judgments regarding comparable rental and operating expense data, the capitalization or discount rate, and projections of future rent and expenses based on appropriate evidence. Other methodologies that may also be used to value properties include sales comparisons and replacement cost approaches. Because the appraisals involve subjective judgments, the fair value of our assets, which is included in our NAV, may not reflect the liquidation value or net realizable value of our properties.

Current wording

Our valuation reports will not be addressed to the public and may not be relied upon by any other person to establish an estimated value of our common stock and will not constitute a recommendation to any person to purchase or sell any shares of our common stock. In preparing our NAV calculation, our Advisor will not solicit third-party indications of interest for our common stock in connection with possible purchases thereof or the acquisition of all or any part of our company. Real estate appraisals are reported on a free and clear basis (for example no mortgage), irrespective of any property-level financing that may be in place. The primary methodology used to value properties is the income approach, whereby value is derived by determining the present value of an asset’s stream of future cash flows (for example, discounted cash flow analysis). Consistent with industry practices, the income approach incorporates subjective judgments regarding comparable rental and operating expense data, the capitalization or discount rate, and projections of future rent and expenses based on appropriate evidence.

Previous wording

Our primary sources of liquidity include $44.6 million in cash, $243 million in available capacity on our borrowing facilities, and $20 million in available borrowing capacity from our revolving credit letter agreements with IREIC and Sound Point. We may seek additional sources of liquidity from syndicated financing in the form of collateralized loan obligations, sale of loan participations, other borrowings, including additional repurchase agreement facilities and borrowings not related to a specific investment and future offerings of equity and debt securities.

Current wording

Our primary sources of liquidity include $58.8 million in cash, $247 million in available capacity on our borrowing facilities, and $20 million in available borrowing capacity from our revolving credit letter agreements with IREIC and Sound Point. We may seek additional sources of liquidity from syndicated financing in the form of collateralized loan obligations, sale of loan participations, other borrowings, including additional repurchase agreement facilities and borrowings not related to a specific investment and future offerings of equity and debt securities.

Previous wording

We experienced a net decrease in cash and cash equivalents of $9,586 for the six months ended June 30, 2024 compared to a net increase of $15,226 for the six months ended June 30, 2023. During the six months ended June 30, 2024, we funded $5,387 in mortgage loans, received $43,410 in principal payments from our loans, paid down $43,992, which is net of draws of $8,201, on our borrowing facilities, and paid distributions of $9,291.

Current wording

We experienced a net increase in cash and cash equivalents of $4,678 for the nine months ended September 30, 2024 compared to a net increase of $24,259 for the nine months ended September 30, 2023. During the nine months ended September 30, 2024, we funded

Previous wording

On May 6, 2019, we, through our wholly owned subsidiary, entered into an uncommitted master repurchase agreement (the “JPM Repo Facility”) with JPMorgan Chase Bank, National Association (“JPM”). The JPM Repo Facility provides up to $150,000 in advances that we expect to use to finance the acquisition or origination of eligible loans and participation interests therein. Advances made prior to December 2021 under the JPM Repo Facility accrue interest at per annum rates equal to the sum of (i) the applicable LIBOR index rate plus (ii) a margin of between 1.75% to 2.50% with no floor, depending on the attributes of the purchased assets. Advances made subsequent to December 2021 under the JPM Repo Facility accrue interest at per annum rates equal to the sum of SOFR plus an agreed upon margin. As of June 30, 2024, all of the advances made under the JPM Repo Facility were indexed to SOFR and have margins between 1.85% and 2.85% with a floor between 0.00% and 2.00%. In May 2022, the maturity date of the JPM Repo Facility was extended to May 6, 2023. On May 5, 2023, we entered into an amendment that extended the maturity date to May 6, 2026, with the option to extend the maturity date further to May 6, 2028 subject to two optional one-year extensions. The amendment also increased the maximum facility amount to $526,076. We used the increased capacity to pay off the balance on the Atlas Repo Facility. The JPM

Current wording

On May 6, 2019, we, through our wholly owned subsidiary, entered into an uncommitted master repurchase agreement (the “JPM Repo Facility”) with JPMorgan Chase Bank, National Association (“JPM”). The JPM Repo Facility provides up to $150,000 in advances that we expect to use to finance the acquisition or origination of eligible loans and participation interests therein. Advances made prior to December 2021 under the JPM Repo Facility accrue interest at per annum rates equal to the sum of (i) the applicable LIBOR index rate plus (ii) a margin of between 1.75% to 2.50% with no floor, depending on the attributes of the purchased assets. Advances made subsequent to December 2021 under the JPM Repo Facility accrue interest at per annum rates equal to the sum of SOFR plus an agreed upon margin. As of September 30, 2024, all of the advances made under the JPM Repo Facility were indexed to SOFR and have margins between 1.85% and 2.85% with a floor between 0.00% and 2.00%. In May 2022, the maturity date of the JPM Repo Facility was extended to May 6, 2023. On May 5, 2023, we entered into an amendment that extended the maturity date to May 6, 2026, with the option to extend the maturity date further to May 6, 2028 subject to two optional one-year extensions. The amendment also increased the maximum facility amount to $526,076. We used the increased capacity to pay off the balance on the Atlas Repo Facility. The JPM Repo Facility is subject to certain financial covenants. We were in compliance with all financial covenant requirements as of September 30, 2024 and December 31, 2023.

Previous wording

During the six months ended June 30, 2024 and 2023, we recorded $1,456 and $2,988 of interest expense related to loan participations sold, respectively.

Current wording

During the nine months ended September 30, 2024 and 2023, we recorded $2,673 and $4,096 of interest expense related to loan participations sold, respectively.

Previous wording

During the six months ended June 30, 2024 and 2023, 100% of our distributions were paid from cash flows from operating activities generated during the period.

Current wording

During the nine months ended September 30, 2024 and 2023, 100% of our distributions were paid from cash flows from operating activities generated during the period.