InPoint Commercial Real Estate Income, Inc.
For the period ended Sep 30, 2025. Filed Nov 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 7, 2025
ICR-PA$19.59+0.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-08.
0000950170-25-105866
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-07.
0001193125-25-272384
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 214 previous paragraphs and 216 current paragraphs.
161 unchanged; 43 reworded; 11 added; 7 removed; 3 previous and 1 current paragraphs rearranged.
Tables are not compared: 27 previous and 27 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (11)
Current report
The CRE debt market has experienced increased activity with the Fed’s recent moves to lower interest rates. CRE investment volume increased by 13% year-over-year in the second quarter to $96 billion. The CBRE Lending Momentum Index, which tracks loans originated or brokered by CBRE, increased 45% year-over-year.
Current report
If the Fed continues rate-cutting through the end of 2025, we may start to see more liquidity in the CRE debt market, with improved ability of borrowers to refinance and pay off existing loans in our portfolio, and enhancement of property values. While lower market rates could mean lower lending rates for newly-originated loans, we may also see a reduction in our borrowing costs, which could help maintain spreads in the portfolio. We continue to consider all of these market factors as we assess our options for the most efficient use of the cash on our balance sheet.
Current report
On September 30, 2025, we sold a $47.5 million loan secured by an office property in Houston, TX, which represented approximately 9% of the total portfolio (including real estate owned) prior to the sale, and recognized a loss of $8.4 million on the sale. The sale reduced our office exposure from 25% prior to the transaction to 18% of our total portfolio (including real estate owned) as of September 30, 2025, and generated a net cash inflow of approximately $10.0 million.
Current report
On September 30, 2025, we entered into a mortgage loan collateralized by the Kansas City property for an aggregate principal amount of $24.5 million. See “Repurchase Agreements, Credit Facility and Mortgage Loan Payable” section below for additional information.
Current report
The loan had a maturity date of November 9, 2026. The Company reviewed the loan and based on the estimated LTV recorded a $1.2 million asset-specific CECL reserve as of September 30, 2025. On October 28, 2025, the Company entered into a discounted payoff agreement with the borrower, pursuant to which the loan was settled for $1.7 million in full satisfaction of all obligations under the loan.
Current report
In October 2025, the loan maturity date was extended to May 9, 2026. The Company reviewed the loan during the quarter ended September 30, 2025 and the estimated value exceeded the loan balance. No asset-specific CECL reserve was recorded as of September 30, 2025.
Current report
Net (Loss) Income
Current report
Net (Loss) Income
Current report
Repurchase Agreements, Credit Facility and Mortgage Loan Payable
Current report
Mortgage Loan Payable
Current report
On September 30, 2025, we entered into a mortgage loan agreement with Ladder Capital Finance LLC for an aggregate principal amount of $24,500. The mortgage loan is collateralized by the Kansas City property. As of September 30, 2025, we had $24,500 outstanding under the mortgage loan. The mortgage loan bears interest at a rate equal to the greater of (a) SOFR plus 2.95% or (b) a floor rate of 6.20% per annum. The mortgage loan requires interest-only payments until the maturity date, at which point the outstanding principal and interest are due. The maturity date of the mortgage loan is October 6, 2027, and we have the option to extend the maturity date for up to three additional one-year periods, subject to the payment of an extension fee, certain costs and expenses and certain other conditions. The mortgage loan contains customary default provisions including failure to pay amounts when due. As of September 30, 2025, the carrying value of the mortgage loan payable was $23,804.
Removed paragraphs (7)
Previous report
The CRE and CRE debt markets have improved as the Federal Reserve began lowering the interest rate in the second half of 2024 but signaled a pause to allow them to evaluate the impact of the implemented rate reductions. The Federal Reserve continues to predict two rate cuts during 2025, but it is uncertain when or if they will occur. The CRE debt market has been active with the stability of the lower interest rates. We believe the CRE debt markets will continue to be competitive and may become more active if the Federal Reserve lowers rates in the second half of 2025. If activity increases, interest rate spreads will likely tighten and should provide existing loans with more refinance opportunities. Office properties continue to see challenges as tenants adjust to the work from home arrangements. We do not believe this will improve during 2025.
Previous report
The loan had a maturity date of October 9, 2025. In February 2025, the Company was notified that the borrower was delinquent on paying the property manager and, as a result, the Company notified the borrower that they were in default of the loan agreement. The Company began foreclosure procedures in March 2025 and acquired the property through a non-judicial foreclosure transaction on July 2, 2025. The Company reviewed the loan and based on the estimated LTV recorded a $2.3 million asset-specific CECL reserve as of June 30, 2025. The loan had been on nonaccrual status since March 1, 2025.
Previous report
The loan matured on April 9, 2025 and was paid off in July 2025.
Previous report
During the six months ended June 30, 2025, we acquired the Kansas City property through a non-judicial foreclosure transaction. The Kansas City property previously collateralized a senior loan. The acquisition was accounted for as an asset acquisition under applicable
Previous report
Net Income
Previous report
Net Income
Previous report
Repurchase Agreements and Credit Facilities
Reworded paragraphs (43)
Previous wording
The following discussion and analysis relate to the three and six months ended June 30, 2025 and 2024 and as of June 30, 2025 and December 31, 2024. 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, 2025 and 2024 and as of September 30, 2025 and December 31, 2024. 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
We did not originate any new loans during 2024 or during the first six months of 2025 as we focused on maintaining our liquidity with several of our loans approaching maturity. During the second quarter of 2025, we funded $0.5 million and received paydowns of $10.5 million on existing loans. We also foreclosed on one loan with an outstanding principal balance of $38.9 million resulting in the acquisition of a multifamily property. During 2025, we will continue to focus on extending or restructuring our maturing loans with an emphasis on obtaining principal reductions or loan payoffs.
Current wording
We did not originate any new loans during 2024 or during the first nine months of 2025 as we focused on maintaining our liquidity with several of our loans approaching maturity. During the third quarter of 2025, we funded $0.5 million and received paydowns of $61.7 million on existing loans and sold one loan with an outstanding principal balance of $47.5 million. We also foreclosed on one loan with an outstanding principal balance of $22.9 million resulting in the acquisition of an office property. During 2025, we will continue to focus on extending or restructuring our maturing loans with an emphasis on obtaining principal reductions or loan payoffs.
Previous wording
The Company’s management has been analyzing the portfolio impact of liquidating the real estate in the portfolio and potentially redeploying those proceeds into newly originated first mortgage loans. The goal is to position the portfolio in order to attempt to pursue a future strategic transaction when capital market conditions have improved, in order to maximize stockholder value and potentially provide our investors with access to some level of liquidity. There is no assurance that the Company will be able to successfully implement any strategic plan. We are continually impacted by evolving market conditions and other complex factors such as (i) the state of the commercial real estate market and financial markets, (ii) our ability to access additional capital or leverage and (iii) changes in general economic conditions such as high interest rates, among other factors. We will provide updates as the Company considers appropriate or as required under applicable law.
Current wording
The Company’s management has been analyzing the portfolio impact of liquidating the real estate in the portfolio and potentially redeploying those proceeds into newly originated first mortgage loans. The Company’s goal is to position the portfolio to pursue a future strategic transaction when capital market conditions have improved, in order to maximize stockholder value and potentially provide our investors with access to some level of liquidity. There is no assurance that the Company will be able to successfully implement any strategic plan. We are continually impacted by evolving market conditions and other complex factors such as (i) the state of the commercial real estate market and financial markets, (ii) our ability to access additional capital or leverage and (iii) changes in general economic conditions such as high interest rates, among other factors. We will provide updates as the Company considers appropriate or as required under applicable law.
Previous wording
Net income attributable to common stockholders was $1.6 million, or $0.16 per share, during the three months ended June 30, 2025, which included $1.0 million in reversal of credit losses.
Current wording
Net loss attributable to common stockholders was $9.1 million, or $0.90 per share, during the three months ended September 30, 2025, which included $0.9 million in reversal of credit losses.
Previous wording
During the second quarter of 2025, we declared gross distributions at an annual rate of $1.25 per common share, which represents an annualized rate of 7.8% on our aggregate NAV of $16.1070 as of June 30, 2025. 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 2025, we declared gross distributions at an annual rate of $1.25 per common share, which represents an annualized rate of 8.2% on our aggregate NAV of $15.2843 as of September 30, 2025. 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
On May 1, 2025, we acquired legal title to a multifamily property located in Kansas City, MO (the “Kansas City property”) through a non-judicial foreclosure transaction. The Kansas City property previously collateralized a senior loan with an amortized cost basis of $38.9 million with a CECL reserve of $0.1 million at the time of the acquisition. The Kansas City property was recorded at $38.9 million based on the estimated fair value at acquisition. On July 14, 2025, we entered into a contract for sale of the Kansas City property for a purchase price of $40.1 million and received $0.8 million earnest money from the buyer on July 18, 2025. The Kansas City property will be classified as held for sale once the buyer completes its due diligence of the asset. We expect to complete the sale of the Kansas City property in the third quarter of 2025.
Current wording
On July 2, 2025, we acquired legal title to an office property located in Charlotte, NC (the “Charlotte property”) through a non-judicial foreclosure transaction. The Charlotte property previously collateralized a senior loan with an amortized cost basis of $22.9 million with a CECL reserve of $2.3 million at the time of the acquisition. The Charlotte property was recorded at $20.1 million based on the estimated fair value at acquisition.
Previous wording
Our loan portfolio decreased 8.6% to $503.9 million during the three months ended June 30, 2025. The decrease includes $10.5 million in loan repayments and a loan transferred on foreclosure to real estate owned of $38.9 million, partially offset by $0.5 million in advances on previously originated loans and $1.0 million of reversal of credit losses.
Current wording
Our loan portfolio decreased 25.5% to $375.4 million during the three months ended September 30, 2025. The decrease includes $61.7 million in loan repayments, sale of a loan with an outstanding principal balance of $47.5 million and a loan transferred on foreclosure to real estate owned of $22.9 million, partially offset by $0.5 million in advances on previously originated loans, $0.9 million of reversal of credit losses and $2.3 million of CECL reserve charge-off related to the foreclosed loan.
Previous wording
21 out of our 23 loans were current on their contractual interest payments during the three months ended June 30, 2025.
Current wording
17 of our 18 loans were current on their contractual interest payments during the three months ended September 30, 2025.
Previous wording
As of June 30, 2025, 2 out of our 23 loans were 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, 2025, one of our 18 loans was 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
We had net repayments of $40.0 million on our repurchase agreements during the three months ended June 30, 2025.
Current wording
We had net repayments of $75.6 million on our repurchase agreements during the three months ended September 30, 2025.
Previous wording
The changes in our loan portfolio by property type and by region as of June 30, 2025 compared to December 31, 2024 were primarily due to transfer of a loan to REO upon foreclosure and 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, 2025 compared to December 31, 2024 were primarily due to the transfer of two loans to REO upon foreclosures, the sale of one loan, and the repayment of loans by borrowers in ordinary course.
Previous wording
The decrease in the size of our portfolio is primarily due to loan payoffs and foreclosure of a loan with no new loans originated during the six months ended June 30, 2025. The decrease in the all-in yield was primarily driven by the changes in the composition of loans in the portfolio.
Current wording
The decrease in the size of our portfolio is primarily due to loan payoffs, sale of one loan and foreclosure of two loans with no new loans originated during the nine months ended September 30, 2025. The decrease in the all-in yield was primarily driven by the changes in the composition of loans in the portfolio.
Previous wording
As of June 30, 2025, an 80% undivided senior interest in each of loan numbers 1 and 5, 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, 2025, an 80% undivided senior interest in loan number 1, 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 the loan.
Previous wording
June 30, 2025 and excluded from the total. The total is the weighted average of the stated yield, excluding any default interest, as of June 30, 2025. Our first mortgage loans are all floating rate and each contains a minimum SOFR floor. As of June 30, 2025, the weighted average SOFR floor was 0.71%.
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 number 18 is on nonaccrual basis as of September 30, 2025 and excluded from the total. The total is the weighted average of the stated yield, excluding any default interest, as of September 30, 2025. Our first mortgage loans are all floating rate and each contains a minimum SOFR floor. As of September 30, 2025, the weighted average SOFR floor was 0.43%.
Previous wording
The loan matures on November 9, 2026. The Company has reviewed the loan and based on the estimated LTV recorded a $1.2 million asset-specific CECL reserve as of June 30, 2025.
Current wording
The loan matures on December 9, 2025. The Company reviewed the loan during the quarter ended September 30, 2025 and the estimated value exceeded the loan balance. No asset-specific CECL reserve was recorded as of September 30, 2025.
Previous wording
The loan matured on April 9, 2023 and was accruing default interest. On March 18, 2025, the Company extended the loan maturity date to February 9, 2026 to allow the borrower to obtain long-term financing or bridge financing to pay-off the existing loan. The property securing the loan is class A office and was 95% occupied as of June 2025.
Current wording
In October 2025, the loan maturity date was extended to November 9, 2025.
Previous wording
The loan has no unfunded commitment and matured on October 6, 2024. The borrower is current on all debt service payments. On July 1, 2025, the Company entered into a forbearance and modification agreement with the borrower which extended the maturity date to December 31, 2025. In addition, the Company agreed to accept $2.3 million for the satisfaction of the loan balance plus all accrued and unpaid interest and lender fees. The borrower made a payment of $0.5 million in July 2025 that will be applied against the required amounts due. The Company has recorded a $3.2 million asset-specific CECL reserve on this loan as of June 30, 2025. The loan has been on nonaccrual status since 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. On July 1, 2025, the Company entered into a forbearance and modification agreement with the borrower which extended the maturity date to December 31, 2025. In addition, the Company agreed to accept $2.3 million for the satisfaction of the loan balance plus all accrued and unpaid interest and lender fees. The borrower made a payment of $0.5 million in July 2025 that was applied against the required amounts due. The Company has recorded a $3.2 million asset-specific CECL reserve on this loan as of September 30, 2025. The loan has been on nonaccrual status since July 1, 2024.
Previous wording
As of June 30, 2025 and December 31, 2024, we had borrowings under repurchase agreements totaling $317,852 and $360,677, respectively, and loan participations sold, net, of $47,753 and $48,524, respectively. During the six months ended June 30, 2025 and the year ended December 31, 2024, we had weighted average borrowings, which include borrowings under repurchase agreements and loan participations sold, net, of $372,679 and $459,902, respectively, and weighted average borrowing costs, which also include borrowings under repurchase agreements and loan participations sold, net, of 6.7% and 7.7%, respectively.
Current wording
As of September 30, 2025 and December 31, 2024, we had borrowings under repurchase agreements totaling $242,270 and $360,677, respectively, and loan participations sold, net, of $47,141 and $48,524, respectively. During the nine months ended September 30, 2025 and the year ended December 31, 2024, we had weighted average borrowings, which include borrowings under repurchase agreements and loan participations sold, net, of $347,391 and $459,902, respectively, and weighted average borrowing costs, which also include borrowings under repurchase agreements and loan participations sold, net, of 6.7% and 7.7%, respectively.
Previous wording
The following table shows additional information about the acquisitions:
Current wording
The following table shows additional information about the 2025 acquisitions:
Previous wording
We recognized a gain of $536 upon the foreclosure transaction, which represents total assets received, net of liabilities assumed, less carrying value of loan adjusted for interest, extension fee and CECL reserve.
Current wording
We recognized a net gain of $531 upon the foreclosure transactions, which represents total assets received, net of liabilities assumed, less carrying value of loans adjusted for interest, extension fee and CECL reserve.
Previous wording
On July 14, 2025, we entered into a contract for sale of the Kansas City property for a purchase price of $40,100 and received $780 earnest money from the buyer on July 18, 2025. The property will be classified as held for sale once the buyer completes its due diligence of the asset. We expect to complete the sale of the property in the third quarter of 2025.
Current wording
On July 14, 2025, we entered into a contract for sale of the Kansas City property for a purchase price of $40,100 and received $780 earnest money in escrow from the buyer on July 18, 2025. The buyer subsequently determined not to proceed with the transaction, resulting in termination of the contract and return of the earnest money to the buyer.
Previous wording
The following table shows additional information about the acquisition:
Current wording
The following table shows additional information about the 2024 acquisitions:
Previous wording
Interest income excludes $328 and $582 for the three months ended June 30, 2025 and 2024, respectively, related to bank deposits not included in the investment portfolio. Interest expense excludes $312 and $0 of participation payments for the three months ended June 30, 2025 and 2024, respectively, related to the REO.
Current wording
Interest income excludes $293 and $500 for the three months ended September 30, 2025 and 2024, respectively, related to bank deposits not included in the investment portfolio. Interest expense excludes $612 and $360 of participation payments for the three months ended September 30, 2025 and 2024, respectively, related to the REO. Interest expense also excludes $5 and zero for the three months ended September 30, 2025 and 2024, respectively, related to interest expense on the mortgage loan payable.
Previous wording
The change in our average interest-earning assets and interest-bearing liabilities was due to the paydown of the principal balance as loans matured or were foreclosed on and the subsequent repayment of the amount financed for these loans. The change in the weighted average levered yield was primarily due to the change in the composition of the loans in the portfolio and the change in the composition of financing.
Current wording
The change in our average interest-earning assets and interest-bearing liabilities was due to the paydown of the principal balance as loans matured or were sold or foreclosed on and the subsequent repayment of the amount financed for these loans. The change in the weighted average levered yield was primarily due to the change in the composition of the loans in the portfolio and the change in the composition of financing.
Previous wording
Our revenue from real estate during the three months ended June 30, 2025 and 2024 was $1,887 and $0, respectively. The increase in revenue was primarily due to the acquisition of one property in May 2025 and three properties during the second half of 2024.
Current wording
Our revenue from real estate during the three months ended September 30, 2025 and 2024 was $2,593 and $1,274, respectively. The increase in revenue was primarily due to the acquisition of two properties during 2025 and one property during the fourth quarter of 2024.
Previous wording
Total operating expenses for the three months ended June 30, 2025 and 2024 were $4,406 and $1,723, respectively. The primary driver of the increase in total operating expenses was the acquisition of one property in May 2025 and three properties during the second half of 2024.
Current wording
Total operating expenses for the three months ended September 30, 2025 and 2024 were $5,344 and $3,209, respectively. The primary driver of the increase in total operating expenses was the acquisition of two properties during 2025 and one property during the fourth quarter of 2024.
Previous wording
For the six months ended June 30, 2025 and 2024, our net income was $7,021 and $8,389, respectively. The decrease in net income was primarily due to a reduction in net interest income as the loan portfolio decreased and an increase in real estate operating expenses and depreciation and amortization, partially offset by an increase in revenue from real estate and a decrease in the CECL reserve.
Current wording
For the three months ended September 30, 2025 and 2024, our net (loss) income was $(7,641) and $615, respectively. The decrease in net income was primarily due to a reduction in net interest income as the loan portfolio decreased, net realized loss on disposition of commercial loans compared to a net realized gain during 2024, and an increase in real estate operating expenses and depreciation and amortization, partially offset by an increase in revenue from real estate and a decrease in the CECL reserve.
Previous wording
Comparison of the Six Months Ended June 30, 2025 to the Six Months Ended June 30, 2024
Current wording
Comparison of the Nine Months Ended September 30, 2025 to the Nine Months Ended September 30, 2024
Previous wording
Interest income excludes $936 and $1,220 for the six months ended June 30, 2025 and 2024, respectively, related to bank deposits not included in the investment portfolio. Interest expense excludes $621 and $0 of participation payments for the six months ended June 30, 2025 and 2024, respectively, related to the REO.
Current wording
Interest income excludes $1,229 and $1,720 for the nine months ended September 30, 2025 and 2024, respectively, related to bank deposits not included in the investment portfolio. Interest expense excludes $1,233 and $360 of participation payments for the nine months ended September 30, 2025 and 2024, respectively, related to the REO. Interest expense also excludes $5 and zero for the nine months ended September 30, 2025 and 2024, respectively, related to interest expense on the mortgage loan payable.
Previous wording
The change in our average interest-earning assets and interest-bearing liabilities was due to loan maturities and payoffs. The change in the weighted average levered yield was primarily due to the change in the composition of loans in the portfolio and the change in the composition of financing.
Current wording
The change in our average interest-earning assets and interest-bearing liabilities was due to the paydown of the principal balance as loans matured or were sold or foreclosed on and the subsequent repayment of the amount financed for these loans. The change in the weighted average levered yield was primarily due to the change in the composition of the loans in the portfolio and the change in the composition of financing.
Previous wording
Our revenue from real estate during the six months ended June 30, 2025 and 2024, was $3,415 and $0, respectively. The increase in revenue was primarily due to the acquisition of one property in May 2025 and three properties during the second half of 2024.
Current wording
Our revenue from real estate during the nine months ended September 30, 2025 and 2024, was $6,008 and $1,274, respectively. The increase in revenue was primarily due to the acquisition of two properties during 2025 and one property during the fourth quarter of 2024.
Previous wording
Operating expenses for the six months ended June 30, 2025 and 2024 consisted of the following:
Current wording
Operating expenses for the nine months ended September 30, 2025 and 2024 consisted of the following:
Previous wording
The amount for the six months ended June 30, 2025 is presented net of $408 in employee retention credits received during the period. These credits relate to the Renaissance O’Hare property that we owned from August 20, 2020 through September 28, 2023.
Current wording
The amount for the nine months ended September 30, 2025 is presented net of $408 in employee retention credits received during the period. These credits relate to the Renaissance O’Hare property that we owned from August 20, 2020 through September 28, 2023.
Previous wording
Total operating expenses for the six months ended June 30, 2025 and 2024 were $7,741 and $3,623, respectively. The primary driver of the increase in total operating expenses was the acquisition of one property in May 2025 and three properties during the second half of 2024.
Current wording
Total operating expenses for the nine months ended September 30, 2025 and 2024 were $13,085 and $6,832, respectively. The primary driver of the increase in total operating expenses was the acquisition of two properties in 2025 and one property during the fourth quarter of 2024.
Previous wording
For the three months ended June 30, 2025 and 2024, our net income was $3,073 and $4,990, respectively. The decrease in net income was primarily due to a reduction in net interest income as the loan portfolio decreased and an increase in real estate operating expenses and depreciation and amortization, partially offset by an increase in revenue from real estate.
Current wording
For the nine months ended September 30, 2025 and 2024, our net (loss) income was $(620) and $9,004, respectively. The decrease in net income was primarily due to a reduction in net interest income as the loan portfolio decreased, net realized loss on disposition of commercial loans compared to a net realized gain during 2024, and an increase in real estate operating expenses and depreciation and amortization, partially offset by an increase in revenue from real estate and a decrease in the CECL reserve.
Previous wording
Stockholder servicing fees only apply to Class T, Class S, and Class D shares. For purposes of NAV, we recognize the stockholder servicing fee as a reduction of NAV on a monthly basis as such fee is paid. Under GAAP, we accrue the full cost of the stockholder servicing fee as an offering cost at the time we sell Class T, Class S, and Class D shares. As of June 30, 2025, we had accrued under GAAP $645 of stockholder servicing fees payable to the Dealer Manager related to the Class T and Class D shares sold. As of June 30, 2025, we had not sold any Class S shares and, therefore, we had not accrued any stockholder servicing fees payable to the Dealer Manager related to Class S shares. The Dealer Manager does not retain any of these fees, all of which are retained by, or reallowed (paid) to, participating broker-dealers and servicing broker-dealers for ongoing stockholder services performed by such broker-dealers.
Current wording
Stockholder servicing fees only apply to Class T, Class S, and Class D shares. For purposes of NAV, we recognize the stockholder servicing fee as a reduction of NAV on a monthly basis as such fee is paid. Under GAAP, we accrue the full cost of the stockholder servicing fee as an offering cost at the time we sell Class T, Class S, and Class D shares. As of September 30, 2025, we had accrued under GAAP $645 of stockholder servicing fees payable to Inland Securities Corporation (the “Dealer Manager”) related to the Class T and Class D shares sold. As of September 30, 2025, we had not sold any Class S shares and, therefore, we had not accrued any stockholder servicing fees payable to the Dealer Manager related to Class S shares. The Dealer Manager does not retain any of these fees, all of which are retained by, or reallowed (paid) to, participating broker-dealers and servicing broker-dealers for ongoing stockholder services performed by such broker-dealers.
Previous wording
Wholly Owned Properties. For real properties we own, our Advisor has developed a valuation plan with the objective of having each of our wholly owned properties valued at least annually by an appraisal, except for newly acquired properties as described below, with appraisals scheduled over the course of a year. We rely on property-level information provided by our Advisor, including but not limited to (1) historical and projected operating revenues and expenses of the property, (2) lease agreements with respect to the property and (3) information regarding recent or planned capital expenditures. Appraisals will be performed in accordance with the Internal Revenue Code of Ethics and the Uniform Standards of Professional Appraisal Practices, the real estate appraisal industry standards created by The Appraisal Foundation. Each appraisal must be reviewed, approved and signed by an individual with the professional designation of MAI (Member of the Appraisal Institute). Newly acquired wholly owned properties will initially be valued at cost and thereafter will join the annual appraisal cycle during the year following the first full calendar year in which we own the property. Development assets, if any, will be valued at cost plus capital expenditures and will join the annual appraisal cycle upon stabilization.
Current wording
Wholly Owned Properties. For real properties we own, our Advisor has developed a valuation plan with the objective of having each of our wholly owned properties valued at least annually by an appraisal, except for newly acquired properties as described below, with appraisals scheduled over the course of a year. We rely on property-level information provided by our Advisor, including but not limited to (1) historical and projected operating revenues and expenses of the property, (2) lease agreements with respect to the property and (3) information regarding recent or planned capital expenditures. Appraisals will be performed in accordance with the Internal Revenue Code of Ethics and the Uniform Standards of Professional Appraisal Practices, the real estate appraisal industry standards created by The Appraisal Foundation. Each appraisal must be reviewed, approved and signed by an individual with the professional designation of MAI (Member of the Appraisal Institute). Newly acquired wholly owned properties will initially be valued at cost and thereafter will join the annual appraisal cycle during the year following the first full calendar year in which we own the property. Development assets, if any, will be valued at cost plus capital expenditures and will join the annual appraisal cycle upon stabilization. Acquisition costs and expenses incurred in connection with the acquisition of multiple wholly owned properties that are not directly related to any single wholly owned property generally will be allocated among the applicable wholly owned properties pro rata based on relative values. Properties purchased as a portfolio or held in a joint venture that acquires properties over time may be valued as a single asset. Each individual appraisal report for our assets will be addressed solely to our company to assist in providing our monthly portfolio valuation.
Previous wording
Our primary sources of funds for liquidity consist of net cash provided by operating activities, repayments of our outstanding loans by borrowers, proceeds from repurchase agreements and other financing arrangements, future issuances of equity and/or debt securities and any follow-on public offerings of common stock. As of June 30, 2025, we had $27 million in cash, $208 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.
Current wording
Our primary sources of funds for liquidity consist of net cash provided by operating activities, repayments of our outstanding loans by borrowers, proceeds from repurchase agreements and other financing arrangements, future issuances of equity and/or debt securities and any follow-on public offerings of common stock. As of September 30, 2025, we had $71 million in cash, $284 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.
Previous wording
We experienced a net decrease in cash and cash equivalents of $37,524 for the six months ended June 30, 2025 compared to a net decrease of $9,586 for the six months ended June 30, 2024. During the six months ended June 30, 2025, we funded $1,498 on existing mortgage loans, received $11,835 in principal payments from our loans, paid down $42,825 on our borrowing facilities, and paid distributions of $9,293.
Current wording
We experienced a net increase in cash and cash equivalents and restricted cash of $9,317 for the nine months ended September 30, 2025 compared to a net increase of $4,678 for the nine months ended September 30, 2024. During the nine months ended September 30, 2025, we funded $2,043 on existing mortgage loans, received $74,029 in principal payments from our loans, paid down $118,407 on our borrowing facilities, received $24,500 from the mortgage loan on REO, received $39,063 from sale of a commercial loan and paid distributions of $13,940.
Previous wording
The JPM Repo Facility, Atlas Repo Facility (prior to its maturity) and WA Credit Facility (prior to its maturity) (collectively, the “Facilities”) are used to finance eligible loans and act in the manner of a revolving credit facility that can be repaid as our assets are paid off and re-drawn as advances against new assets.
Current wording
The JPM Repo Facility, Atlas Repo Facility (prior to its maturity) and WA Credit Facility (prior to its maturity) (collectively, the “Facilities”) have been, and continue to be (in the case of the JPM Repo Facility), used to finance eligible loans and act in the manner of a revolving credit facility that can be repaid as our assets are paid off and re-drawn as advances against new assets.
Showing the first 40 of 43 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
During the nine months ended September 30, 2025, we acquired a multifamily property in Kansas City, MO (the “Kansas City property”) and the Charlotte property through non-judicial foreclosure transactions. The properties previously collateralized two senior loans. The acquisitions were accounted for as asset acquisitions under applicable GAAP guidance. The properties were recorded on our consolidated balance sheet based on the estimated fair value at acquisition. The fair market value estimate was determined based on appraisals performed by independent third-party appraisers.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
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 5 and 23 are on nonaccrual basis as of
Previous report — wording carried elsewhere
GAAP guidance. The Kansas City property was recorded on our consolidated balance sheet based on the estimated fair value at acquisition. The fair market value estimate was determined based on an appraisal performed by an independent third-party appraiser.
Previous report — wording carried elsewhere
Acquisition costs and expenses incurred in connection with the acquisition of multiple wholly owned properties that are not directly related to any single wholly owned property generally will be allocated among the applicable wholly owned properties pro rata based on relative values. Properties purchased as a portfolio or held in a joint venture that acquires properties over time may be valued as a single asset. Each individual appraisal report for our assets will be addressed solely to our company to assist in providing our monthly portfolio valuation.