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Rosemarie A. Thurston
Michael J. Kessler Alston & Bird LLP 1201 W. Peachtree Street NW Atlanta, GA 30309 (404) 881-7000 Fax: (404) 253-8447 |
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Brad L. Shiffman
Thomas A. Cournoyer Blank Rome LLP 1271 Avenue of the Americas New York, NY 10021 Tel: (212) 885-5000 Fax: (212) 885-5001 |
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Large accelerated filer
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Accelerated filer
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Non-accelerated filer
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Smaller reporting company
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Emerging growth company
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| | | | | 46 | | | |
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| | | | | 48 | | | |
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| | | | | 88 | | |
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March 31, 2021
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Fixed Rate
|
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Floating
Rate (1)(2)(3) |
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Total Gross
Loans |
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Obligations under
Participation Agreements and Secured Borrowing |
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Total Net Loans
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Number of loans
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| | | | 6 | | | | | | 13 | | | | | | 19 | | | | | | 7 | | | | | | 19 | | |
Principal balance
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| | | $ | 57,040,923 | | | | | $ | 350,689,385 | | | | | $ | 407,730,308 | | | | | $ | 93,310,285 | | | | | $ | 314,420,023 | | |
Amortized cost
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| | | | 57,157,301 | | | | | | 348,911,570 | | | | | | 406,068,871 | | | | | | 93,596,454 | | | | | | 312,472,417 | | |
Fair value
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| | | | 57,099,978 | | | | | | 346,367,302 | | | | | | 403,467,280 | | | | | | 91,599,071 | | | | | | 311,868,209 | | |
Weighted average coupon rate
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| | | | 12.07% | | | | | | 7.66% | | | | | | 8.28% | | | | | | 9.97% | | | | | | 7.78% | | |
Weighted-average remaining term (years)
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| | | | 1.57 | | | | | | 1.41 | | | | | | 1.43 | | | | | | 0.90 | | | | | | 1.59 | | |
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March 31, 2021
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Loan Structure
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Principal Balance
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Carrying
Value |
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% of Total
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First mortgages
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$212,718,851
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$214,217,072
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68.6%
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Preferred equity investments
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77,586,298
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77,828,409
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24.9%
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Mezzanine loans
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24,114,874
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24,441,714
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7.8%
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Allowance for loan losses
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—
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(4,014,778)
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(1.3)%
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Total
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$314,420,023
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$312,472,417
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100.0%
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March 31, 2021
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Property Type
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Principal Balance
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Carrying
Value |
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% of Total
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Office
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$150,129,899
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$150,669,866
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48.2%
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Multifamily
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80,440,026
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81,087,592
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26.0%
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Hotel – full/select service
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47,112,522
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47,704,223
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15.3%
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Mixed use
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16,512,842
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16,512,842
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5.3%
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Industrial
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7,000,000
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7,000,000
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2.2%
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Infill land
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5,974,734
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6,030,824
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1.9%
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Hotel – extended stay
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4,250,000
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4,292,148
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1.4%
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Student housing
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3,000,000
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3,189,700
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1.0%
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Allowance for loan losses
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—
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(4,014,778)
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(1.3)%
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Total
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$314,420,023
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$312,472,417
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100.0%
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March 31, 2021
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Geographic Location
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Principal Balance
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Carrying
Value |
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% of Total
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United States
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California
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$121,331,368
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$122,393,503
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39.1%
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Georgia
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74,957,483
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75,352,520
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24.1%
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New York
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56,966,298
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57,039,596
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18.3%
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North Carolina
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28,774,734
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28,934,721
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9.3%
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Washington
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18,500,000
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18,648,113
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6.0%
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Massachusetts
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7,000,000
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7,000,000
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2.2%
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Texas
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3,890,140
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3,929,042
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1.3%
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South Carolina
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3,000,000
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3,189,700
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1.0%
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Allowance for loan losses
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—
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(4,014,778)
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(1.3)%
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Total
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$314,420,023
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$312,472,417
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100.0%
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(Unaudited)
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As of March 31, 2021
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Actual
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As Adjusted
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Cash and cash equivalents | | | | | | | | | | | | | |
Cash and cash equivalents
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| | | $ | 18,464,161 | | | | | $ | 56,422,328 | | |
Restricted cash
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| | | | 7,096,549 | | | | | | 7,096,549 | | |
Total cash and cash equivalents | | | | $ | 25,560,710 | | | | | $ | 63,518,877 | | |
Debt | | | | | | | | | | | | | |
Term loan payable
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| | | $ | 106,454,107 | | | | | $ | 106,454,107 | | |
Obligations under participation agreements
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| | | | 71,276,756 | | | | | | 71,276,756 | | |
Mortgage loan payable
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| | | | 40,596,980 | | | | | | 40,596,980 | | |
Secured borrowing
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| | | | 22,033,529 | | | | | | 22,033,529 | | |
Revolving Line of Credit payable
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| | | | 8,030,611 | | | | | | 8,030,611 | | |
Notes offered hereby
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| | | | — | | | | | | 40,000,000 | | |
Total Debt
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| | | $ | 248,391,983 | | | | | $ | 288,391,983 | | |
Stockholders’ equity
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12.5% Series A Cumulative Non-Voting Preferred Stock at liquidation preference, 125 shares authorized and 125 shares issued and outstanding, actual and as adjusted
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| | | $ | 125,000 | | | | | $ | 125,000 | | |
Common stock, $0.01 par value, 450,000,000 shares authorized and 19,487,460 shares issued and outstanding, actual and as adjusted
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| | | | 194,875 | | | | | | 194,875 | | |
Additional paid-in capital
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| | | | 373,443,672 | | | | | | 373,443,672 | | |
Accumulated deficit
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| | | | (72,859,887) | | | | | | (72,859,887) | | |
Total Equity
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| | | $ | 300,903,660 | | | | | $ | 300,903,660 | | |
Total Capitalization
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| | | $ | 549,295,643 | | | | | $ | 589,295,643 | | |
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Three Months Ended March 31,
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Years Ended December 31,
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2021
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2020
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2020
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2019
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Operating Data: | | | | | | | | | | | | | | | | ||||||||||
Total revenues
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| | | $ | 10,289,252 | | | | | $ | 12,077,571 | | | | | $ | 50,320,888 | | | | | $ | 51,399,525 | | |
Total operating expenses
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| | | | 5,579,725 | | | | | | 6,110,396 | | | | | | 26,667,214 | | | | | | 22,607,397 | | |
Other income and (expenses)
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| | | | (3,233,431) | | | | | | (5,388,212) | | | | | | (18,397,944) | | | | | | (19,749,353) | | |
Net income
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| | | $ | 1,476,096 | | | | | $ | 578,963 | | | | | $ | 5,255,730 | | | | | $ | 9,042,775 | | |
Net income allocable to common stock
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| | | $ | 1,472,190 | | | | | $ | 575,057 | | | | | $ | 5,240,106 | | | | | $ | 9,027,151 | | |
Per Share Data: | | | | | | | | | | | | | | | | ||||||||||
Net income per share of common stock
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Basic and diluted
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| | | $ | 0.08 | | | | | $ | 0.03 | | | | | $ | 0.28 | | | | | $ | 0.60 | | |
Distribution declared per share of common stock
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| | | $ | 0.20 | | | | | $ | 0.53 | | | | | $ | 1.16 | | | | | $ | 2.03 | | |
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March 31,
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December 31,
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2021
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2020
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2020
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2019
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Balance Sheet Data: | | | | | | | | | | | | | | | | ||||||||||
Loans held for investment, net
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| | | $ | 406,068,871 | | | | | $ | 402,969,513 | | | | | $ | 422,280,515 | | | | | $ | 378,612,768 | | |
Equity investment in a limited partnership
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| | | | 50,505,511 | | | | | | — | | | | | | 36,259,959 | | | | | | — | | |
Real estate owned, net
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| | | | 72,242,825 | | | | | | 76,645,592 | | | | | | 73,178,939 | | | | | | 77,596,475 | | |
Other assets
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| | | | 56,980,818 | | | | | | 124,872,224 | | | | | | 56,757,768 | | | | | | 71,133,835 | | |
Total assets
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| | | | 585,798,025 | | | | | | 604,487,329 | | | | | | 588,477,181 | | | | | | 527,343,078 | | |
Debt
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| | | | 245,967,816 | | | | | | 238,640,684 | | | | | | 239,132,654 | | | | | | 227,548,397 | | |
Lease intangible liabilities, net
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| | | | 10,128,244 | | | | | | 11,276,085 | | | | | | 10,249,776 | | | | | | 11,424,809 | | |
Other liabilities
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| | | | 28,798,305 | | | | | | 39,719,823 | | | | | | 35,769,686 | | | | | | 40,826,139 | | |
Total liabilities
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| | | | 284,894,365 | | | | | | 289,636,592 | | | | | | 285,152,116 | | | | | | 279,799,345 | | |
Equity
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| | | $ | 300,903,660 | | | | | $ | 314,850,737 | | | | | $ | 303,325,065 | | | | | $ | 247,543,733 | | |
Underwriter
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Principal
amount of Notes |
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Ladenburg Thalmann & Co. Inc.
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| | | $ | | | |
B. Riley Securities, Inc.
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Incapital LLC
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William Blair & Company L.L.C.
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Total
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| | | $ | 40,000,000 | | |
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Per Note
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Without
Option |
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With
Option |
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Public offering price
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| | | $ | 25.00 | | | | | $ | 40,000,000 | | | | | $ | 46,000,000 | | |
Underwriting discount (sales load) paid by us(1)
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| | | $ | 0.78125 | | | | | $ | 1,250,000 | | | | | $ | 1,437,500 | | |
Estimated Proceeds to us, before expenses
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| | | $ | 24.21875 | | | | | $ | 38,750,000 | | | | | $ | 44,562,500 | | |
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Ladenburg Thalmann
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B. Riley Securities
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| | Incapital | | |
William Blair
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SEC Registration Fee
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| | | $ | 8,183 | | |
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FINRA Filing Fee
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| | | | 11,750 | | |
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NYSE Listing Fee
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| | | | 36,900 | | |
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Accounting Fees & Expenses
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| | | | 175,000 | | |
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Legal Fees and Expenses
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| | | | 465,000 | | |
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Printing Fees and Expenses
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| | | | 40,000 | | |
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Miscellaneous Fees and Expenses
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| | | | 55,000 | | |
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Total
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| | | $ | 791,833 | | |
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Signature
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Title
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Date
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*
Andrew M. Axelrod
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Chairman of the Board
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June 1, 2021
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/s/ Vikram S. Uppal
Vikram S. Uppal
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Director and Chief Executive Officer
(Principal Executive Officer) |
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June 1, 2021
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/s/ Gregory M. Pinkus
Gregory M. Pinkus
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Chief Financial Officer, Chief Operating Officer, Treasurer and Secretary
(Principal Financial and Accounting Officer) |
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June 1, 2021
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*
Roger H. Beless
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Director
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June 1, 2021
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*
Michael L. Evans
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Director
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June 1, 2021
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*By:
/s/ Gregory M. Pinkus
Gregory M. Pinkus
Attorney-in-Fact |
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