Strong Q4 Distributable Earnings
Distributable earnings for Q4 2025 were $4.6 million, or $0.28 per share (would have been $0.31 per share adjusted for the rights offering), contributing to full-year 2025 distributable earnings of $1.21 per share.
Successful Rights Offering and Increased Capacity
Completed a rights offering in December raising $61.5 million in net proceeds, which management says increased investment capacity by over $200 million; manager increased ownership to just over 20% aligning interests with shareholders.
Accelerated Q4 Originations and Ongoing Q1 Activity
Closed or acquired 3 new loans in Q4 with total commitments of $101.3 million (student housing $37.3M, hotel $37M, industrial $27M). Since quarter-end closed an additional $30.5M loan and has ~ $37M expected to close soon plus ~ $39M in diligence.
Portfolio Growth and Quality Metrics
Total loan commitments of $724.5 million across 24 floating-rate first mortgage loans as of Dec 31, 2025 — up $83 million year-over-year (≈13% YoY). Weighted average all-in yield was 7.92%, weighted average loan-to-value at origination 66%, and weighted average risk rating improved to 2.8.
No Delinquencies or Nonaccruals
All loans were current on debt service at year-end with no past due or nonaccrual loans; no 5-rated loans, no collateral-dependent loans and no loans with specific reserves, underscoring underwriting/asset management strength.
Interest Rate Floor Protection
All but one loan have SOFR floors; 7 floors became active in Q4 providing approximately $0.01 of quarterly earnings protection based on SOFR as of Dec 31. One group of floors ranges from 25 bps to 4.34% with a weighted average floor of 2.81%.
Liquidity and Financing Capacity
Ended the quarter with $123 million cash on hand; since quarter-end extended maturities on two secured facilities and increased the maximum size of one facility by $125 million, resulting in pro forma secured financing capacity of $377 million.
Large and Diverse Pipeline
Management is evaluating over $1.0 billion of loan opportunities across multiple property types (medical office, necessity retail, self-storage, hospitality, industrial, multifamily) and expects near-term production cadence that could average ~$200 million per quarter later in 2026.