SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2023

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

On January 18, 2024, the Company received a second insurance payment, in the amount of approximately $13.5 million, relating to a “5” risk rated loan collateralized by a multifamily property in Columbus, Ohio, currently in receivership, which had a carrying value of $8.9 million as of December 31, 2023. The application of these insurance proceeds will reduce the carrying value of this loan to $0, and it is expected that after taking into consideration certain legal and other costs and amounts deemed recoverable, will result in the recognition of approximately $1.9 million of income in the quarter ending March 31, 2024.

On February 5, 2024, LFT CRE 2021-FL1, Ltd, as lender, and the borrower on a loan collateralized by a multifamily property in Virginia Beach, VA, entered into an amendment which modified the terms of the underlying loan agreement. The loan, which had an unpaid principal balance of $36.8 million as of December 31, 2023, was on non-accrual status as of such date and was risk rated a “5” due to monetary default. In connection with the modification, the borrower, among other things, made a principal payment of approximately $3.6 million and brought current any past due interest, escrows and reserves, which will result in interest of approximately $0.5 million that was unpaid as of December 31, 2023 being recognized as income in the quarter ending March 31, 2024. The note rate on the loan has been amended to SOFR + 400 basis points from SOFR + 327 basis points and the stated maturity date of the loan has been amended to April 5, 2024, with the ability for borrower to extend, under certain conditions, to May 3, 2024.