Loans Held for Investment

9 Months Ended

Sep. 30, 2015

As of September 30, 2015, the Company owned 11 loans held for investment with a weighted-average interest rate of 6.9% and weighted-average years to maturity of 9.3 years. The following table presents the composition of the loans held for investment as of September 30, 2015 (dollar amounts in thousands):



	Loans held for investment	Outstanding Balance		Carrying Value		Weighted-Average Interest Rate			Weighted-Average Years to Maturity
Mortgage notes receivable	10	$	26,544	$	24,702	6.3	%	⁽¹⁾	13.8	⁽²⁾
Unsecured note ⁽³⁾	1	15,300		15,300		8.0	%		1.5
Total	11	$	41,844	$	40,002	6.9	%		9.3

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(1)	The interest rates on the mortgage notes receivable range from 5.57% to 7.24%, as of September 30, 2015.


(2)	The mortgage notes receivable have maturity dates ranging from March 2016 to January 2033.


(3)	The Company’s unsecured note is with an affiliate of the Former Manager, as defined within Note 15 – Equity. The unsecured note requires principal payments of $7.7 million on March 31, 2016 and $3.8 million on September 30, 2016 and the remaining balance is due at maturity, on March 31, 2017. The note may be pre-paid at par any time prior to maturity.

The Company’s mortgage notes receivable are comprised primarily of fully-amortizing or nearly fully-amortizing first mortgage loans. The Company has one mortgage note receivable where the Company does not receive monthly payments of principal and interest but rather the interest is capitalized into the outstanding balance that is due at maturity. The mortgage notes receivable are primarily on commercial real estate, each leased to a single tenant. Therefore, the Company’s monitoring of the credit quality of its mortgage notes receivable is focused primarily on an analysis of the tenant, including review of tenant quality and ratings, trends in the tenant’s industry and general economic conditions and an analysis of measures of collateral coverage, such as an estimate of the loan-to-value ratio (principal amount outstanding divided by estimated value of the property) and its remaining term until maturity. As of September 30, 2015 and December 31, 2014, the Company had no reserve for loan loss.

The following table summarizes the scheduled aggregate principal payments due to the Company on the loans held for investment subsequent to September 30, 2015 (in thousands):



	Outstanding Balance
Due within one year	$	9,298
Due after one year through five years	12,924
Due after five years through 10 years	6,516
Due after 10 years⁽¹⁾	17,056
Total	$	45,794

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(1) Includes additional $4.0 million of interest that will be capitalized into the outstanding balance of the note subsequent to September 30, 2015.