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COMMERCIAL MORTGAGE LOANS HELD-FOR-INVESTMENT (Tables)
 12 Months Ended
Dec. 31, 2023
Receivables [Abstract]  
Summary of Commercial Mortgage Loans
The following tables summarize certain characteristics of the Company's investments in commercial mortgage loans as of December 31, 2023 and December 31, 2022:

Weighted Average
Loan TypeUnpaid Principal Balance
Carrying Value(1)
Loan CountFloating Rate Loan %
Coupon(2)
Term (Years)(3)
December 31, 2023
Loans held-for-investment
Senior secured loans(4)
$1,397,385,160 $1,389,940,203 88 100.0 %8.9 %2.9
     Allowance for credit lossesN/A$(6,059,006)
$1,397,385,160 $1,383,881,197 88 100.0 %8.9 %2.9

Weighted Average
Loan TypeUnpaid Principal BalanceCarrying ValueLoan CountFloating Rate Loan %
Coupon(1)
Term (Years)(2)
December 31, 2022
Loans held-for-investment
Senior secured loans(4)
$1,076,865,099 $1,076,148,186 71 100.0 %7.6 %3.5
N/A$(4,258,668)
$1,076,865,099 $1,071,889,518 71 100.0 %7.6 %3.5

(1)    Carrying Value includes $7,000,863 in unaccreted purchase discounts as of December 31, 2023, there were no unaccreted purchase discounts as of December 31, 2022
(2)    Weighted average coupon assumes applicable one-month LIBOR of 4.18% as of December 31, 2022, and 30-day Term Secured Overnight Financing Rate ("SOFR") of 5.33% and 4.19% as of December 31, 2023 and December 31, 2022, respectively, inclusive of weighted average interest rate floors of 0.38% and 0.27%, respectively. As of December 31, 2023, 100.0% of the investments by total exposure earned a floating rate


indexed to 30-day Term SOFR. As of December 31, 2022, 77.4% of the investments by total investment exposure earned a floating rate indexed to one-month LIBOR and 22.6% of the investments by total investment exposure earned a floating rate indexed to 30-day Term SOFR..
(3)    Weighted average remaining term assumes all extension options are exercised by the borrower; provided, however, that our loans may be repaid prior to such date.
(4)    As of December 31, 2023, $1,375,277,312 of the outstanding senior secured loans were held in VIEs and $8,603,886 of the outstanding senior secured loans were held outside of VIEs. As of December 31, 2022, $996,511,403 of the outstanding senior secured loans were held in VIEs and $75,378,115 of the outstanding senior secured loans were held outside of VIEs.

Activity: For the years ended December 31, 2023 and December 31, 2022, the loan portfolio activity was as follows:

Commercial Mortgage Loans Held-for-Investment
Balance at December 31, 2021$1,001,825,294 
Purchases and advances345,158,577 
Principal payments(270,926,723)
Accretion of purchase discount125,098 
Amortization of purchase premium(61,144)
Accretion of deferred loan fees27,084 
Provision for credit losses(4,258,668)
Balance at December 31, 2022$1,071,889,518 
Purchases and advances594,201,680 
Principal repayments(277,481,511)
Accretion of purchase discount1,070,701 
Amortization of purchase premium(19,253)
Accretion of deferred loan fees292,073 
Cumulative-effect adjustment upon adoption of ASU 2013-16(3,549,501)
Provision for credit losses(2,522,510)
Balance at December 31, 2023$1,383,881,197 
Summary of Loan Risk Ratings The following table presents the principal balance and net book value of the loan portfolio based on the Company's internal risk ratings as of December 31, 2023 and December 31, 2022:
December 31, 2023
Amortized Cost by Year of Origination
Risk RatingNumber of LoansOutstanding Principal2023202220212019
1— $— $— $— $— $— 
23 37,720,000 — 37,276,159 — — 
367 1,019,844,272 17,887,019 449,921,414 542,010,684 — 
416 294,150,124 — 134,664,646 156,450,510 — 
52 45,670,764 — — 8,889,177 36,781,588 
88 $1,397,385,160 $17,887,019 $621,862,219 $707,350,371 $36,781,588 
December 31, 2022
Amortized Cost by Year of Origination
Risk RatingNumber of LoansOutstanding Principal20222021201920182017
1— $— $— $— $— $— $— 
211 153,933,750 85,198,084 67,999,500 — — — 
355 852,474,681 101,654,140 672,421,907 42,077,193 16,672,623 19,668,071 
43 47,448,000 15,000,000 32,448,000 — — — 
52 23,008,668 — 12,750,000 — 6,000,000 — 
71 $1,076,865,099 $201,852,224 $785,619,407 $42,077,193 $22,672,623 $19,668,071 
Schedule of Geographic Concentrations The following tables present the geographic and property types of collateral underlying the Company's commercial mortgage loans as a percentage of the loans' carrying value as of December 31, 2023 and December 31, 2022:
Loans Held-for-Investment
December 31, 2023December 31, 2022
Geography
South43.5 %46.6 %
Southwest29.4 26.7 
Mid-Atlantic15.0 12.4 
Midwest7.9 8.0 
West4.2 6.3 
Total100.0 %100.0 %

December 31, 2023December 31, 2022
Collateral Property Type
Multifamily94.0 %89.6 %
Healthcare5.5 6.4 
Self-Storage0.5 1.8 
Retail— 1.6 
Office— 0.6 
Total100.0 %100.0 %
Schedule of Allowance for Loan Losses
The following table presents the changes for the years ended December 31, 2023 and December 31, 2022 in the provision for credit losses on loans held-for-investment.

Year ended
December 31, 2023December 31, 2022
Allowance for credit losses at beginning of period$4,258,668 $— 
Cumulative-effect adjustment upon adoption of ASU 2016-133,549,501 — 
Provision for credit losses2,522,510 4,258,668 
Charge offs(4,271,673)— 
Allowance for credit losses at end of period $6,059,006 $4,258,668 
The following table presents the changes for the years ended December 31, 2023 and December 31, 2022 in the provision for credit losses on the unfunded commitments of the Company's loans held-for-investment:

Year ended
December 31, 2023December 31, 2022
Allowance for credit losses at beginning of period$— $— 
Cumulative-effect adjustment upon adoption of ASU 2016-1341,939 — 
Provision for credit losses1,708 — 
Allowance for credit losses at end of period$43,647 $— 

The following tables presents the allowance for credit losses for loans held for investment:

December 31, 2023
General ReserveSpecific ReserveTotal Reserve
Allowance for credit losses:
Loans held for investment$6,059,006 $— $6,059,006 
Unfunded loan commitments43,647 — 43,647 
Total allowance for credit losses$6,102,653 $— $6,102,653 
Total unpaid principal balance$1,397,385,160 $— $1,397,385,160 
December 31, 2022
General ReserveSpecific ReserveTotal Reserve
Allowance for credit losses:
Loans held for investment$— $4,258,668 $4,258,668 
Unfunded loan commitments— — — 
Total allowance for credit losses$— $4,258,668 $4,258,668 
Total unpaid principal balance$— $10,258,668 $10,258,668