Subsequent Events |
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Subsequent Events | Note 16 – Subsequent Events The Company has evaluated subsequent events through March 30, 2023, the date the consolidated financial statements were issued, and determined that there have not been any events that have occurred that would require adjustments to disclosures in the consolidated financial statements except for the following transactions: Suspension of Share Repurchase Plan, Primary Offering, and Distribution Reinvestment Plan In light of the pace of fundraising in the Second Public Offering and the amount of monthly redemption requests pursuant to the SRP, which are currently in excess of such fundraising, on January 30, 2023, the Board unanimously approved, effective immediately, the suspension of the operation of the SRP. In connection with such suspension, the Board has also unanimously approved the suspension of the sale of shares in the primary portion of the public offering (the “Primary Offering”), effective immediately, and the suspension of the sale of shares pursuant to the DRP, effective as of February 10, 2023. The Primary Offering, the SRP, and the DRP shall each remain suspended unless and until such time as the Board approves their resumption. In connection with the foregoing, the Board has decided to evaluate strategic alternatives available to the Company. Termination of Series A Preferred Repurchase Program The Board previously authorized and approved the Series A Preferred Repurchase Program pursuant to which the Company was permitted to repurchase up to the lesser of 1,000,000 shares or $15,000,000 of the outstanding shares of the Company’s 6.75% Series A Cumulative Redeemable Preferred Stock through December 31, 2022 (later extended through December 31, 2023). On January 30, 2023, the Board unanimously approved the termination of the Series A Preferred Repurchase Program. Distributions On February 17, 2023, the Company paid distributions for each class of its common stock to stockholders of record as of January 31, 2023 in the amounts per share set forth below:
On February 27, 2023, the Company announced that the Board authorized a distribution on its Series A Preferred Stock to stockholders of record as of March 15, 2023, payable on or about March 30, 2023 in the amount of $0.421875 per share.
On March 17, 2023, the Company paid distributions for each class of its common stock to stockholders of record as of February 28, 2023 in the amounts per share set forth below:
Loan Loss Reserve In March 2023, changes in local market conditions cast doubt on the collectability of one of the Company’s first mortgage loans. A large tenant in a competing office building decided to relocate their operations. Consequently, the increase in the supply of available office space is pushing down rents in the area which is having a detrimental impact on the value of the underlying collateral on the loan. As a result, the Company has recorded a loan loss reserve of $3,588 as of December 31, 2022. The loss reserve includes the total principal balance and accrued fees of $17,120 net of the participation interest of $13,532. Repurchase Agreements and Credit Facilities On February 8, 2023, Column Financial, Inc. and affiliated parties sold and assigned their interest in the CF Loan Facility to Atlas Securitized Products Investments 2, L.P. All other terms of the loan facility were unchanged. |