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| | | | F-1 | | |
Operating Data:
(dollars in thousands) |
| |
Successor
Six Months Ended June 30, 2020 |
| |
Successor
Period from November 15, 2019 through December 31, 2019 |
| | |
Predecessor
Period from January 1, 2019 through November 14, 2019 |
| |
Predecessor
Year Ended December 31, 2018 |
| |
Predecessor
Year Ended December 31, 2017 |
| |||||||||||||||
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income
|
| | | $ | 46,733 | | | | | $ | 13,207 | | | | | | $ | 82,225 | | | | | $ | 58,429 | | | | | $ | 31,772 | | |
Fee income
|
| | | | 14,105 | | | | | | 2,767 | | | | | | | 32,785 | | | | | | 37,417 | | | | | | 20,447 | | |
Total Revenue
|
| | | | 60,838 | | | | | | 15,974 | | | | | | | 115,010 | | | | | | 95,846 | | | | | | 52,219 | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Change in fair value of optional
subscription liabilities |
| | | | 3,146 | | | | | | (4,924) | | | | | | | — | | | | | | — | | | | | | — | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Impairment: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loss provision
|
| | | | 3,931 | | | | | | — | | | | | | | 3,342 | | | | | | 1,783 | | | | | | 330 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Compensation and employee benefits
|
| | | | 6,237 | | | | | | 2,527 | | | | | | | 5,554 | | | | | | 3,945 | | | | | | 1,797 | | |
General and administrative
|
| | | | 6,778 | | | | | | 2,843 | | | | | | | 10,402 | | | | | | 8,278 | | | | | | 4,704 | | |
Transaction costs
|
| | | | — | | | | | | 367 | | | | | | | 25,789 | | | | | | — | | | | | | — | | |
Total Expenses
|
| | | | 16,946 | | | | | | 10,661 | | | | | | | 45,087 | | | | | | 14,006 | | | | | | 6,831 | | |
Income before income taxes
|
| | | | 47,038 | | | | | | 5,313 | | | | | | | 69,923 | | | | | | 81,840 | | | | | | 45,388 | | |
Income tax provision
|
| | | | — | | | | | | — | | | | | | | — | | | | | | 90 | | | | | | — | | |
Net income
|
| | | $ | 47,038 | | | | | $ | 5,313 | | | | | | $ | 69,923 | | | | | $ | 81,750 | | | | | $ | 45,388 | | |
Earnings per common share:(1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | $ | 0.36 | | | | | $ | 0.04 | | | | | | | — | | | | | | — | | | | | | — | | |
Diluted
|
| | | $ | 0.36 | | | | | $ | 0.04 | | | | | | | — | | | | | | — | | | | | | — | | |
Balance Sheet
(dollars in thousands) |
| |
Successor
as of June 30, 2020 |
| |
Successor
as of December 31, 2019 |
| | |
Predecessor
as of December 31, 2018 |
| |
Predecessor
as of December 31, 2017 |
| ||||||||||||
Mortgage Notes Receivable, net
|
| | | $ | 817,319 | | | | | $ | 821,589 | | | | | | $ | 589,572 | | | | | $ | 318,091 | | |
Total other assets
|
| | | | 373,017 | | | | | | 387,140 | | | | | | | 128,294 | | | | | | 77,341 | | |
Total assets
|
| | | | 1,190,326 | | | | | | 1,208,729 | | | | | | | 717,866 | | | | | | 395,432 | | |
Total liabilities
|
| | | | 12,428 | | | | | | 24,257 | | | | | | | 32,756 | | | | | | 13,041 | | |
Total equity
|
| | | | 1,177,898 | | | | | | 1,184,472 | | | | | | | 685,110 | | | | | | 382,391 | | |
Total liabilities and equity
|
| | | $ | 1,190,326 | | | | | $ | 1,208,729 | | | | | | $ | 717,866 | | | | | $ | 395,432 | | |
| | | | | | | | | | | | | | |
(dollars in thousands)
|
| |
Successor
Six Months Ended June 30, 2020 |
| |
Combined
Successor and Predecessor Consolidated Year Ended December 31, 2019 |
| ||||||
Core earnings(1)
|
| | | $ | 50,985 | | | | | $ | 113,273 | | |
Core earnings per share, basic(1)
|
| | | $ | 0.39 | | | | | $ | 0.86(2) | | |
Core earnings per share, diluted(1)
|
| | | $ | 0.39 | | | | | $ | 0.86(2) | | |
(amounts in thousands, except share and per share data)
|
| |
Successor
Six Months Ended June 30, 2020 |
| |
Successor
Period from November 15, 2019 through December 31, 2019 |
| |
Combined
Successor and Predecessor Consolidated Three Months Ended December 31, 2019 |
| |
Combined
Successor and Predecessor Consolidated Year Ended December 31, 2019 |
| ||||||||||||
Net income
|
| | | $ | 47,038 | | | | | $ | 5,313 | | | | | $ | (6,812)(1) | | | | | $ | 75,236 | | |
Adjustments for non-core earnings: | | | | | | | | | | | | | | | | | | | | | | | | | |
Transaction costs
|
| | | | — | | | | | | 367 | | | | | | 26,156 | | | | | | 26,156 | | |
Non-cash stock compensation expense
|
| | | | 1,881 | | | | | | 1,417 | | | | | | 1,417 | | | | | | 1,417 | | |
First year public company transition expenses(3)
|
| | | | 2,066 | | | | | | 989 | | | | | | 989 | | | | | | 989 | | |
Change in fair value of optional subscription liabilities
|
| | | | (3,146) | | | | | | 4,924 | | | | | | 4,924 | | | | | | 4,924 | | |
Amortization of intangible assets
|
| | | | (785) | | | | | | 1,030 | | | | | | 1,030 | | | | | | 1,030 | | |
Loan loss provision
|
| | | | 3,931 | | | | | | — | | | | | | — | | | | | | 3,342 | | |
Loss/(gain) on settlement of Real
property |
| | | | — | | | | | | — | | | | | | — | | | | | | 179 | | |
Core earnings
|
| | | $ | 50,985 | | | | | $ | 14,040 | | | | | $ | 27,704 | | | | | $ | 113,273 | | |
Earnings per share, basic
|
| | | $ | 0.36 | | | | | $ | 0.04 | | | | | $ | (0.05) | | | | | $ | 0.57 | | |
Earnings per share, diluted
|
| | | $ | 0.36 | | | | | $ | 0.04 | | | | | $ | (0.05) | | | | | $ | 0.57 | | |
Core earnings per share, basic
|
| | | $ | 0.39 | | | | | $ | 0.11 | | | | | $ | 0.21 | | | | | $ | 0.86 | | |
Core earnings per share, diluted
|
| | | $ | 0.39 | | | | | $ | 0.11 | | | | | $ | 0.21 | | | | | $ | 0.86 | | |
Weighted-average number of shares of common
stock outstanding, basic and diluted |
| | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | 132,120,290 | | | | | | 132,111,329 | | | | | | 132,111,329(2) | | | | | | 132,111,329(2) | | |
Diluted
|
| | | | 132,120,290 | | | | | | 132,499,386 | | | | | | 132,499,386(2) | | | | | | 132,499,386(2) | | |
State
|
| |
Total Committed
Amount of Mortgage Loans |
| |
Percent of
Total Portfolio |
| ||||||
Washington
|
| | | $ | 260.5 | | | | | | 23.3% | | |
Colorado
|
| | | | 259.8 | | | | | | 23.2% | | |
Utah
|
| | | | 241.1 | | | | | | 21.5% | | |
Texas
|
| | | | 175.2 | | | | | | 15.6% | | |
Oregon
|
| | | | 85.2 | | | | | | 7.6% | | |
Idaho
|
| | | | 54.9 | | | | | | 4.9% | | |
Total top six states
|
| | | $ | 1,076.7 | | | | | | 95.7% | | |
Other
|
| | | | 44.8 | | | | | | 4.0% | | |
Total
|
| | | $ | 1,121.5 | | | | | | 100% | | |
Month
|
| |
Dividend Per
Share ($) |
| |
Record Date
|
| |
Payment Date
|
| |||
November – December 2019(1) | | | | | 0.12 | | | |
December 31, 2019
|
| | January 15, 2020 | |
January 2020
|
| | | | 0.08 | | | | January 31, 2020 | | | February 14, 2020 | |
February 2020
|
| | | | 0.08 | | | |
February 28, 2020
|
| | March 13, 2020 | |
March 2020
|
| | | | 0.08 | | | | March 31, 2020 | | | April 15, 2020 | |
April 2020
|
| | | | 0.06 | | | | April 30, 2020 | | | May 15, 2020 | |
May 2020
|
| | | | 0.06 | | | | May 29, 2020 | | | June 15, 2020 | |
June 2020
|
| | | | 0.06 | | | | June 30, 2020 | | | July 15, 2020 | |
July 2020
|
| | | | 0.06 | | | | July 31, 2020 | | | August 14, 2020 | |
August 2020
|
| | | | 0.06 | | | | August 31, 2020 | | |
September 15, 2020(2)
|
|
September 2020
|
| | | | 0.06 | | | |
September 30, 2020
|
| | October 15, 2020(2) | |
(dollars in millions)
|
| |
Three Months Ended
June 30, 2020 |
| |
Six Months Ended
June 30, 2020 |
| ||||||
Loans originated
|
| | | $ | 50.5 | | | | | $ | 158.6 | | |
Loans repaid
|
| | | $ | 53.8 | | | | | $ | 148.9 | | |
(amounts in thousands, except share
and per share data) |
| |
Successor
Three Months Ended June 30, 2020 |
| |
Successor
Six Months Ended June 30, 2020 |
| |
Successor
Period from November 15, 2019 through December 31, 2019 |
| |
Combined
Successor and Predecessor Consolidated Three Months Ended December 31, 2019(1) |
| |
Combined
Successor and Predecessor Consolidated Year Ended December 31, 2019 |
| |||||||||||||||
Net income
|
| | | $ | 19,759 | | | | | $ | 47,038 | | | | | $ | 5,313 | | | | | $ | (6,812) | | | | | $ | 75,236 | | |
Adjustments for non-core earnings:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Transaction costs
|
| | | | — | | | | | | — | | | | | | 367 | | | | | | 26,156 | | | | | | 26,156 | | |
Non-cash stock compensation expense
|
| | | | 967 | | | | | | 1,881 | | | | | | 1,417 | | | | | | 1,417 | | | | | | 1,417 | | |
First year public company transition expenses(3)
|
| | | | 834 | | | | | | 2,066 | | | | | | 989 | | | | | | 989 | | | | | | 989 | | |
Change in fair value of optional subscription liabilities
|
| | | | 1,458 | | | | | | (3,146) | | | | | | 4,924 | | | | | | 4,924 | | | | | | 4,924 | | |
Amortization of intangible
assets |
| | | | 119 | | | | | | (785) | | | | | | 1,030 | | | | | | 1,030 | | | | | | 1,030 | | |
Loan loss provision
|
| | | | 309 | | | | | | 3,931 | | | | | | — | | | | | | — | | | | | | 3,342 | | |
Loss/(gain) on settlement of
Real property |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 179 | | |
Core earnings
|
| | | $ | 23,446 | | | | | $ | 50,985 | | | | | $ | 14,040 | | | | | $ | 27,704 | | | | | $ | 113,273 | | |
Earnings per share, basic
|
| | | $ | 0.15 | | | | | $ | 0.36 | | | | | $ | 0.04 | | | | | $ | (0.05) | | | | | $ | 0.57 | | |
Earnings per share, diluted
|
| | | $ | 0.15 | | | | | $ | 0.36 | | | | | $ | 0.04 | | | | | $ | (0.05) | | | | | $ | 0.57 | | |
Core earnings per share, basic
|
| | | $ | 0.18 | | | | | $ | 0.39 | | | | | $ | 0.11 | | | | | $ | 0.21 | | | | | $ | 0.86 | | |
Core earnings per share, diluted
|
| | | $ | 0.18 | | | | | $ | 0.39 | | | | | $ | 0.11 | | | | | $ | 0.21 | | | | | $ | 0.86 | | |
Weighted-average number of
shares of common stock outstanding, basic and diluted |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | 132,165,005 | | | | | | 132,120,290 | | | | | | 132,111,329 | | | | | | 132,111,329(2) | | | | | | 132,111,329(2) | | |
Diluted
|
| | | | 132,165,005 | | | | | | 132,120,290 | | | | | | 132,499,386 | | | | | | 132,499,386(2) | | | | | | 132,499,386(2) | | |
| | |
Three Months Ended
|
| |
Six Months Ended
|
| ||||||||||||||||||
Statements of Operations Data:
|
| |
June 30,
2020 (Successor) |
| |
June 30,
2019 (Predecessor) |
| |
June 30,
2020 (Successor) |
| |
June 30,
2019 (Predecessor) |
| ||||||||||||
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income
|
| | | $ | 22,180 | | | | | $ | 23,456 | | | | | $ | 46,733 | | | | | $ | 44,079 | | |
Fee income
|
| | | | 6,890 | | | | | | 13,117 | | | | | | 14,105 | | | | | | 22,277 | | |
Total Revenue
|
| | | | 29,070 | | | | | | 36,573 | | | | | | 60,838 | | | | | | 66,356 | | |
Other Income (Expense): | | | | | | | | | | | | | | | | | | | | | | | | | |
Change in fair value of optional subscription liabilities
|
| | | | (1,458) | | | | | | — | | | | | | 3,146 | | | | | | — | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Impairment: | | | | | | | | | | | | | | | | | | | | | | | | | |
Loan loss provision
|
| | | | 309 | | | | | | 297 | | | | | | 3,931 | | | | | | 73 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Compensation and employee benefits
|
| | | | 3,044 | | | | | | 1,925 | | | | | | 6,237 | | | | | | 3,853 | | |
General and administrative
|
| | | | 4,500 | | | | | | 3,151 | | | | | | 6,778 | | | | | | 6,241 | | |
Total Expenses
|
| | | | 7,853 | | | | | | 5,373 | | | | | | 16,946 | | | | | | 10,167 | | |
Income before income taxes
|
| | | | 19,759 | | | | | | 31,200 | | | | | | 47,038 | | | | | | 56,189 | | |
Income tax provision
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net income
|
| | | $ | 19,759 | | | | | $ | 31,200 | | | | | $ | 47,038 | | | | | $ | 56,189 | | |
|
| | |
Three Months Ended
|
| |
Six Months Ended
|
| ||||||||||||||||||
Percentage of Revenue:
|
| |
June 30,
2020 (Successor) |
| |
June 30,
2019 (Predecessor) |
| |
June 30,
2020 (Successor) |
| |
June 30,
2019 (Predecessor) |
| ||||||||||||
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income
|
| | | | 76% | | | | | | 64% | | | | | | 77% | | | | | | 66% | | |
Fee income
|
| | | | 24 | | | | | | 36 | | | | | | 23 | | | | | | 34 | | |
Total Revenue
|
| | | | 100 | | | | | | 100 | | | | | | 100 | | | | | | 100 | | |
Other Income: | | | | | | | | | | | | | | | | | | | | | | | | | |
Change in fair value of optional subscription liability
|
| | | | (5) | | | | | | 0 | | | | | | 5 | | | | | | 0 | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Impairment: | | | | | | | | | | | | | | | | | | | | | | | | | |
Loss provision (recovery)
|
| | | | 1 | | | | | | 1 | | | | | | 7 | | | | | | 0 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Compensation and employee benefits
|
| | | | 11 | | | | | | 5 | | | | | | 10 | | | | | | 6 | | |
General and administrative
|
| | | | 15 | | | | | | 9 | | | | | | 11 | | | | | | 9 | | |
Total Expenses
|
| | | | 27 | | | | | | 15 | | | | | | 28 | | | | | | 15 | | |
Income before income taxes
|
| | | | 68 | | | | | | 85 | | | | | | 77 | | | | | | 85 | | |
Income tax provision
|
| | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | |
Net income
|
| | | | 68% | | | | | | 85% | | | | | | 77% | | | | | | 85% | | |
(dollars in thousands)
|
| |
Total
|
| |
Less than
1 year |
| |
1 – 3 years
|
| |
3 – 5 years
|
| |
More than
5 years |
| |||||||||||||||
Operating lease obligations
|
| | | $ | 12,076 | | | | | $ | 647 | | | | | $ | 1,879 | | | | | $ | 1,993 | | | | | $ | 7,557 | | |
Construction holdbacks
|
| | | | 260,401 | | | | | | 230,435 | | | | | | 29,966 | | | | | | — | | | | | | — | | |
Total
|
| | | $ | 272,477 | | | | | $ | 231,082 | | | | | $ | 31,845 | | | | | $ | 1,993 | | | | | $ | 7,557 | | |
|
(dollars in thousands)
|
| |
Successor
November 15 through December 31, 2019 |
| | |
Predecessor
January 1 through November 14, 2019 |
| |
Year Ended
December 31, 2018 |
| |||||||||
Revenues | | | | | | | | | | | | | | | | | | | | |
Interest income
|
| | | $ | 13,207 | | | | | | $ | 82,225 | | | | | $ | 58,429 | | |
Fee income
|
| | | | 2,767 | | | | | | | 32,785 | | | | | | 37,417 | | |
Total Revenue
|
| | | | 15,974 | | | | | | | 115,010 | | | | | | 95,846 | | |
Expenses | | | | | | | | | | | | | | | | | | | | |
Impairment: | | | | | | | | | | | | | | | | | | | | |
Loss provision
|
| | | | — | | | | | | | 3,342 | | | | | | 1,783 | | |
Other Expense: | | | | | | | | | | | | | | | | | | | | |
Change in fair value of optional subscription liabilities
|
| | | | 4,924 | | | | | | | — | | | | | | — | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | |
Compensation and employee benefits
|
| | | | 2,527 | | | | | | | 5,554 | | | | | | 3,945 | | |
General and administrative
|
| | | | 2,843 | | | | | | | 10,402 | | | | | | 8,278 | | |
Transaction costs
|
| | | | 367 | | | | | | | 25,789 | | | | | | — | | |
Total Expenses
|
| | | | 10,661 | | | | | | | 45,087 | | | | | | 14,006 | | |
Income before income taxes
|
| | | | 5,313 | | | | | | | 69,923 | | | | | | 81,840 | | |
Income tax provision
|
| | | | — | | | | | | | — | | | | | | 90 | | |
Net income
|
| | | $ | 5,313 | | | | | | $ | 69,923 | | | | | $ | 81,750 | | |
| | |
Year Ended December 31,
|
| |
Increase (Decrease)
|
| ||||||||||||||||||
(dollars in thousands)
|
| |
2018
|
| |
2017
|
| |
Amount
|
| |
%
|
| ||||||||||||
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income
|
| | | $ | 58,429 | | | | | $ | 31,772 | | | | | $ | 26,657 | | | | | | 83.9% | | |
Fee income
|
| | | | 37,417 | | | | | | 20,447 | | | | | | 16,970 | | | | | | 83.0% | | |
Total Revenue
|
| | | | 95,846 | | | | | | 52,219 | | | | | | 43,627 | | | | | | 83.5% | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Impairment: | | | | | | | | | | | | | | | | | | | | | | | | | |
Loss provision
|
| | | | 1,783 | | | | | | 330 | | | | | | 1,453 | | | | | | 440.3% | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Compensation and employee benefits
|
| | | | 3,945 | | | | | | 1,797 | | | | | | 2,148 | | | | | | 119.5% | | |
General and administrative
|
| | | | 8,278 | | | | | | 4,704 | | | | | | 3,574 | | | | | | 76.0% | | |
Total Expenses
|
| | | | 14,006 | | | | | | 6,831 | | | | | | 7,175 | | | | | | 105.0% | | |
Income before income taxes
|
| | | | 81,840 | | | | | | 45,388 | | | | | | 36,452 | | | | | | 80.3% | | |
Income tax provision
|
| | | | 90 | | | | | | — | | | | | | 90 | | | | | | — | | |
Net income
|
| | | $ | 81,750 | | | | | $ | 45,388 | | | | | $ | 36,362 | | | | | | 80.1% | | |
| | |
Payments by Period
|
| |||||||||||||||||||||||||||
Contractual Obligations
|
| |
Total
|
| |
Less than
1 year |
| |
1 – 3 years
|
| |
3 – 5 years
|
| |
More than
5 years |
| |||||||||||||||
Operating lease obligations
|
| | | $ | 518 | | | | | $ | 518 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Construction reserves
|
| | | | 253,708 | | | | | | 222,562 | | | | | | 31,146 | | | | | | — | | | | | | — | | |
Total
|
| | | $ | 254,226 | | | | | $ | 223,080 | | | | | $ | 31,146 | | | | | $ | — | | | | | $ | — | | |
(dollars in thousands)
|
| |
Successor
Six Months Ended June 30, 2020 |
| |
Predecessor
Six Months Ended June 30, 2019 |
| ||||||
Cash provided by (used in): | | | | | | | | | | | | | |
Operating activities
|
| | | | 46,768 | | | | | | 54,022 | | |
Investing activities
|
| | | | (3,612) | | | | | | (126,635) | | |
Financing activities
|
| | | | (63,401) | | | | | | 145,968 | | |
Net increase / (decrease) in cash & cash equivalents
|
| | | | (20,245) | | | | | | 73,355 | | |
(Dollar amounts in millions)
|
| |
For the Six
Months Ended June 30, |
| |
For the Years Ended,
December 31, |
| ||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| ||||||||||||
Loans originated
|
| | | | 37 | | | | | | 72 | | | | | | 116 | | | | | | 194 | | |
Loans repaid
|
| | | | 75 | | | | | | 72 | | | | | | 140 | | | | | | 140 | | |
| | |
As of June 30,
|
| |
As of December 31,
|
| ||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| ||||||||||||
Number of loans outstanding
|
| | | | 216 | | | | | | 264 | | | | | | 241 | | | | | | 266 | | |
Unpaid principal balance (end of period balance)(1)
|
| | | $ | 832.3 | | | | | $ | 722.7 | | | | | $ | 829.0 | | | | | $ | 591.3 | | |
Total commitment
|
| | | $ | 1,121.5 | | | | | $ | 1,031.3 | | | | | $ | 1,101.3 | | | | | $ | 898.1 | | |
Average total commitment
|
| | | $ | 5.2 | | | | | $ | 3.9 | | | | | $ | 4.6 | | | | | $ | 3.4 | | |
Weighted average contractual interest rate per annum(2)
|
| | | | 12% | | | | | | 12% | | | | | | 12% | | | | | | 12% | | |
Year of Origination
|
| |
Number of
Loans |
| |
Total
Commitment ($M)(1) |
| ||||||
2020 (through June 30)
|
| | | | 37 | | | | | $ | 158.6 | | |
2019
|
| | | | 116 | | | | | $ | 446.6 | | |
2018
|
| | | | 194 | | | | | $ | 647.0 | | |
2017
|
| | | | 175 | | | | | $ | 397.7 | | |
2016 and prior
|
| | | | 565 | | | | | $ | 523.6 | | |
| | |
At June 30, 2020
|
| |||||||||||||||
Loan Purpose
|
| |
# of Loans
|
| |
Total
Commitment ($M) |
| |
%
|
| |||||||||
Vertical Construction
|
| | | | 153 | | | | | $ | 781.3 | | | | | | 69.7% | | |
Horizontal Development
|
| | | | 29 | | | | | | 194.3 | | | | | | 17.3% | | |
Investment
|
| | | | 34 | | | | | | 145.9 | | | | | | 13.0% | | |
Total | | | | | 216 | | | | | $ | 1,121.5 | | | | | | 100.0% | | |
| | |
At June 30, 2020
|
| |||||||||||||||
Property Type
|
| |
# of Loans
|
| |
Total
Commitment ($M) |
| |
%
|
| |||||||||
For Sale Residential
|
| | | | 112 | | | | | $ | 397.8 | | | | | | 35.5% | | |
For Rent Residential
|
| | | | 21 | | | | | | 197.3 | | | | | | 17.6% | | |
Horizontal Development
|
| | | | 33 | | | | | | 201.2 | | | | | | 17.9% | | |
Commercial/Other
|
| | | | 32 | | | | | | 246.3 | | | | | | 22.0% | | |
Raw Land
|
| | | | 18 | | | | | | 78.9 | | | | | | 7.0% | | |
Total | | | | | 216 | | | | | $ | 1,121.5 | | | | | | 100.0% | | |
| | |
June 30, 2020
|
| |||||||||||||||
State
|
| |
# of
Loans |
| |
Total
Commitment ($M) |
| |
%
|
| |||||||||
WA
|
| | | | 58 | | | | | $ | 260.5 | | | | | | 23.2% | | |
CO
|
| | | | 48 | | | | | | 259.8 | | | | | | 23.2% | | |
UT
|
| | | | 31 | | | | | | 241.1 | | | | | | 21.5% | | |
TX
|
| | | | 17 | | | | | | 175.2 | | | | | | 15.6% | | |
OR
|
| | | | 12 | | | | | | 85.2 | | | | | | 7.6% | | |
ID
|
| | | | 16 | | | | | | 54.9 | | | | | | 4.9% | | |
Other
|
| | | | 34 | | | | | | 44.8 | | | | | | 4.0% | | |
Total | | | | | 216 | | | | | $ | 1,121.5 | | | | | | 100.0% | | |
Name
|
| |
Age
as of June 30, 2020 |
| |
Position
|
|
Joseph L. Schocken | | |
73
|
| | Chairman and Director | |
Jeffrey B. Pyatt | | |
60
|
| | President and Chief Executive Officer and Director | |
Stephen G. Haggerty | | |
52
|
| | Director | |
Daniel J. Hirsch | | |
46
|
| | Director | |
Kevin M. Luebbers | | |
53
|
| | Director | |
Norma J. Lawrence | | |
65
|
| | Director | |
David A. Karp | | |
60
|
| | Director | |
Name
|
| |
Age
as of June 30, 2020 |
| |
Position
|
|
Jeffrey B. Pyatt | | |
60
|
| | President and Chief Executive Officer and Director | |
David Schneider | | |
38
|
| | Chief Financial Officer | |
Linda D. Koa | | |
44
|
| | Chief Operating Officer and Secretary | |
Nevin Boparai | | |
41
|
| | Chief Legal Officer | |
Daniel Hirsty | | |
30
|
| | Chief Credit Officer | |
Name
|
| |
Fees
Paid in Cash ($) |
| |
Stock
Awards(1) ($) |
| |
All Other
Compensation ($) |
| |
Total
($) |
| ||||||||||||
Stephen G. Haggerty
|
| | | | 22,500 | | | | | | — | | | | | | — | | | | | | 22,500 | | |
Daniel J. Hirsch
|
| | | | 22,500 | | | | | | — | | | | | | — | | | | | | 22,500 | | |
Kevin M. Luebbers
|
| | | | 25,000 | | | | | | — | | | | | | — | | | | | | 25,000 | | |
Norma J. Lawrence
|
| | | | 22,500 | | | | | | — | | | | | | — | | | | | | 22,500 | | |
David A. Karp
|
| | | | 28,750 | | | | | | — | | | | | | — | | | | | | 28,750 | | |
Name
|
| |
Annual Base
Salary ($) |
| |
Target Bonus
|
| |
Shares subject to
initial RSU Award |
| ||||||
Jeffrey B. Pyatt
|
| | | | 400,000 | | | | 62.5% of Annual Base Salary | | | | | 95,694 | | |
David N. Schneider
|
| | | | 350,000 | | | | $250,000 | | | | | 48,000 | | |
Adam J. Fountain (resigned)
|
| | | | 400,000 | | | | 62.5% of Annual Base Salary | | | | | —(1) | | |
Joanne Van Sickle (resigned)
|
| | | | 150,000 | | | |
166.66% of Annual Base Salary
|
| | | | — | | |
| | |
Threshold
|
| |
Target
|
| |
High
|
| |||||||||
Jeffrey B. Pyatt
|
| | | | 62.5% | | | | | | 125.0% | | | | | | 200.0% | | |
David Schneider
|
| | | | 50.0% | | | | | | 100.0% | | | | | | 150.0% | | |
Name and Principal Position
|
| |
Year
|
| |
Salary
($) |
| |
Bonus
($) |
| |
Stock
Awards(1) ($) |
| |
Option
Awards ($) |
| |
Non-equity
Incentive Plan Compensation ($) |
| |
All Other
Compensation(2) ($) |
| |
Total
($) |
| ||||||||||||||||||||||||
Jeffrey B. Pyatt,
President and Chief Executive Officer |
| | | | 2019 | | | | | | 50,000 | | | | | | — | | | | | | 1,060,290 | | | | | | — | | | | | | — | | | | | | 6,928,781 | | | | | | 8,039,071 | | |
| | | 2018 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 8,669,797 | | | | | | 8,669,797 | | | ||
Joseph L. Schocken,
Non-Executive Chairman and Chief Executive Officer of Predecessor Company Group |
| | | | 2019 | | | | | | — | | | | | | — | | | | | | 1,060,290 | | | | | | — | | | | | | — | | | | | | 7,599,579 | | | | | | 8,659,869 | | |
| | | 2018 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 8,669,797 | | | | | | 8,669,797 | | | ||
David N. Schneider,
Chief Financial Officer(3) |
| | | | 2019 | | | | | | 21,875 | | | | | | 150,000(3) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 171,875 | | |
Adam J. Fountain,
Former Executive Vice President(4) |
| | | | 2019 | | | | | | 50,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,423,082 | | | | | | 2,473,082 | | |
Joanne Van Sickle,
Former Controller(5) |
| | | | 2019 | | | | | | 163,308 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,942,579 | | | | | | 2,105,887 | | |
| | | 2018 | | | | | | 139,968 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,067,550 | | | | | | 2,207,518 | | |
Plan Category
|
| |
Number of
Securities to be Issued upon Exercise of Outstanding Options, Warrants and Rights (a) |
| |
Weighted-Average
Exercise Price of Outstanding Options, Warrants and Rights (b) |
| |
Number of Securities Stock
Remaining Available for Future Issuance under Equity Compensation Plans (Excluding Securities Reflected in Column (a)) (c) |
| |||||||||
Equity compensation plans approved by stockholders
|
| | | | 334,928 | | | | | | —(1) | | | | | | 4,569,378 | | |
Equity compensation plans not approved by stockholders
|
| | | | — | | | | | | — | | | | | | — | | |
Total
|
| | | | 334,928 | | | | | | — | | | | | | 4,569,378 | | |
Predecessor Company
|
| |
Predecessor
Management Company |
| |
2019 Compensation
|
| |||
PBRELF I
|
| |
MgCo I
|
| | | $ | 39,862,604 | | |
BRELF II
|
| |
MgCo II
|
| | | $ | 46,739,135 | | |
BRELF III
|
| |
MgCo III
|
| | | $ | 2,054,930 | | |
BRELF IV
|
| |
MgCo IV
|
| | | $ | 176,059 | | |
Name of Beneficial Owner(1)
|
| |
Shares
Beneficially Owned |
| |
Percentage
of Outstanding Shares Beneficially Owned |
| ||||||
Joseph L. Schocken(2)
|
| | | | 2,083,657 | | | | | | 1.6% | | |
Jeffrey B. Pyatt(3)
|
| | | | 2,500,960 | | | | | | 1.9% | | |
Stephen G. Haggerty(4)
|
| | | | 821,184 | | | | | | * | | |
Daniel J. Hirsch(5)
|
| | | | 30,000 | | | | | | * | | |
Kevin M. Luebbers(6)
|
| | | | 20,000 | | | | | | * | | |
Norma J. Lawrence
|
| | | | — | | | | | | * | | |
David A. Karp
|
| | | | — | | | | | | * | | |
David Schneider
|
| | | | — | | | | | | * | | |
Adam Fountain(7)
|
| | | | 607,773 | | | | | | * | | |
Joanne Van Sickle(8)
|
| | | | 413,288 | | | | | | * | | |
All current directors and executive officers as a group (10 individuals)(9)
|
| | | | 5,497,106 | | | | | | 4.2% | | |
All directors, executive officers and other named executive officers (12 individuals, including former executive officers)(10)
|
| | | | 6,518,167 | | | | | | 4.9% | | |
Greater than 5% Stockholders: | | | | | | | | | | | | | |
Farallon Capital Management, L.L.C.(11)
|
| | | | 11,355,402 | | | | | | 8.3% | | |
Vanguard Group Inc.(12)
|
| | | | 8,851,056 | | | | | | 6.7% | | |
Multi-Sector Credit, LLC(13)
|
| | | | 8,090,231 | | | | | | 6.1% | | |
| | |
Before the Offering
|
| | | | | | | | | | | | | |
After the Offering
|
| ||||||||||||||||||||||||||||||
Name of Selling Stockholder
|
| |
Number of
Shares of Common Stock Beneficially Owned |
| |
Percentage of
Outstanding Shares of Common Stock |
| |
Number of
Warrants |
| |
Number of
Shares of Common Stock Being Offered |
| |
Number of
Warrants Being Offered |
| |
Number of
Shares of Common Stock Beneficially Owned |
| |
Percentage of
Outstanding Shares of Common Stock |
| |
Number of
Warrants |
| ||||||||||||||||||||||||
Farallon Capital (AM) Investors, L.P.
|
| | | | 312,293 (1) | | | | | | * | | | | | | 197,301 | | | | | | 312,293 (1) | | | | | | 197,301 | | | | | | — | | | | | | * | | | | | | — | | |
Farallon Capital Institutional Partners II, L.P.
|
| | | | 908,384 (2) | | | | | | * | | | | | | 573,969 | | | | | | 908,384 (2) | | | | | | 573,969 | | | | | | — | | | | | | * | | | | | | — | | |
Farallon Capital Institutional Partners, III, L.P.
|
| | | | 596,089 (3) | | | | | | * | | | | | | 376,667 | | | | | | 596,089 (3) | | | | | | 376,667 | | | | | | — | | | | | | * | | | | | | — | | |
Four Crossings Institutional Partners V, L.P.
|
| | | | 851,585 (4) | | | | | | * | | | | | | 538,096 | | | | | | 851,585 (4) | | | | | | 538,096 | | | | | | — | | | | | | * | | | | | | — | | |
Farallon Capital Institutional Partners, L.P.
|
| | | | 4,911,316 (5) | | | | | | 3.7% | | | | | | 3,103,021 | | | | | | 4,911,316 (5) | | | | | | 3,103,021 | | | | | | — | | | | | | * | | | | | | — | | |
Farallon Capital Partners, L.P.
|
| | | | 3,775,735 (6) | | | | | | 2.8% | | | | | | 2,385,559 | | | | | | 3,775,735(6) | | | | | | 2,385,559 | | | | | | — | | | | | | * | | | | | | — | | |
| | |
Page
|
| |||
| | | | F-3 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-7 | | | |
| | | | F-8 | | | |
| | | | F-29 | | | |
| | | | F-30 | | | |
| | | | F-31 | | | |
| | | | F-32 | | | |
| | | | F-33 | | | |
| | | | F-34 | | | |
| | | | F-35 | | | |
| | | | F-36 | | | |
Trinity Merger Corp. | | | | | | | |
For the Nine Months Ended September 30, 2019 | | | | | | | |
| | | | F-59 | | | |
| | | | F-60 | | | |
| | | | F-61 | | | |
| | | | F-62 | | | |
| | | | F-63 | | | |
For the Year Ended December 31, 2018 | | | | | | | |
| | | | F-76 | | | |
| | | | F-77 | | | |
| | | | F-78 | | |
| | |
Page
|
| |||
| | | | F-79 | | | |
| | | | F-80 | | | |
| | | | F-81 | | | |
Broadmark Realty Capital Inc. | | | | | | | |
| | | | F-92 | | |
| | |
June 30, 2020
|
| |
December 31, 2019
|
| ||||||
Assets | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 217,969 | | | | | $ | 238,214 | | |
Mortgage notes receivable, net
|
| | | | 817,319 | | | | | | 821,589 | | |
Interest and fees receivable
|
| | | | 8,986 | | | | | | 4,108 | | |
Investment in real property, net
|
| | | | 3,690 | | | | | | 5,837 | | |
Intangible assets, net
|
| | | | 791 | | | | | | 4,970 | | |
Goodwill
|
| | | | 136,965 | | | | | | 131,965 | | |
Other assets
|
| | | | 4,606 | | | | | | 2,046 | | |
Total assets
|
| | | $ | 1,190,326 | | | | | $ | 1,208,729 | | |
Liabilities and Equity | | | | | | | | | | | | | |
Accounts payable and accrued liabilities
|
| | | $ | 4,494 | | | | | $ | 8,415 | | |
Dividends payable
|
| | | | 7,934 | | | | | | 15,842 | | |
Total liabilities
|
| | | $ | 12,428 | | | | | $ | 24,257 | | |
Commitments and Contingencies | | | | | | | | | | | | | |
Common stock, $0.001 par value, 500,000,000 shares authorized, 132,231,184 and 132,015,635 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively
|
| | | | 132 | | | | | | 132 | | |
Preferred stock, $0.001 par value, 100,000,000 shares authorized, 0 shares issued and outstanding at June 30, 2020 and December 31, 2019
|
| | | | — | | | | | | — | | |
Additional Paid in Capital
|
| | | | 1,211,001 | | | | | | 1,209,120 | | |
Accumulated deficit
|
| | | | (33,235) | | | | | | (24,780) | | |
Total equity
|
| | | | 1,177,898 | | | | | | 1,184,472 | | |
Total liabilities and equity
|
| | | $ | 1,190,326 | | | | | $ | 1,208,729 | | |
| | |
Successor
Three Months Ended June 30, 2020 |
| |
Predecessor
Three Months Ended June 30, 2019(2) |
| |
Successor
Six Months Ended June 30, 2020 |
| |
Predecessor
Six Months Ended June 30, 2019(2) |
| ||||||||||||
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income
|
| | | $ | 22,180 | | | | | $ | 23,456 | | | | | $ | 46,733 | | | | | $ | 44,079 | | |
Fee income
|
| | | | 6,890 | | | | | | 13,117 | | | | | | 14,105 | | | | | | 22,277 | | |
Total Revenue
|
| | | | 29,070 | | | | | | 36,573 | | | | | | 60,838 | | | | | | 66,356 | | |
Other Income (Expense): | | | | | | | | | | | | | | | | | | | | | | | | | |
Change in fair value of optional subscription
liabilities |
| | | | (1,458) | | | | | | — | | | | | | 3,146 | | | | | | — | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Impairment: | | | | | | | | | | | | | | | | | | | | | | | | | |
Loan loss provision
|
| | | | 309 | | | | | | 297 | | | | | | 3,931 | | | | | | 73 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Compensation and employee benefits
|
| | | | 3,044 | | | | | | 1,925 | | | | | | 6,237 | | | | | | 3,853 | | |
General and administrative
|
| | | | 4,500 | | | | | | 3,151 | | | | | | 6,778 | | | | | | 6,241 | | |
Total Expenses
|
| | | | 7,853 | | | | | | 5,373 | | | | | | 16,946 | | | | | | 10,167 | | |
Income before income taxes
|
| | | | 19,759 | | | | | | 31,200 | | | | | | 47,038 | | | | | | 56,189 | | |
Income tax provision
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net income
|
| | | $ | 19,759 | | | | | $ | 31,200 | | | | | $ | 47,038 | | | | | $ | 56,189 | | |
Earnings per common share:(1) | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | $ | 0.15 | | | | | $ | — | | | | | $ | 0.36 | | | | | $ | — | | |
Diluted
|
| | | $ | 0.15 | | | | | $ | — | | | | | $ | 0.36 | | | | | $ | — | | |
Weighted-average shares of common stock outstanding, basic and diluted
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | 132,165,005 | | | | | | — | | | | | | 132,120,290 | | | | | | — | | |
Diluted
|
| | | | 132,165,005 | | | | | | — | | | | | | 132,120,290 | | | | | | — | | |
| | |
Preferred
|
| |
Common stock
|
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| | |||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Total
|
| |||||||||||||||||||||||||||
Balances as of December 31, 2019
|
| | | | — | | | | | $ | — | | | | | | 132,015,635 | | | | | $ | 132 | | | | | $ | 1,209,120 | | | | | $ | (24,780) | | | | | $ | 1,184,472 | | |
Issuance of shares from vested RSUs
|
| | | | — | | | | | | — | | | | | | 95,694 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net Income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 27,279 | | | | | | 27,279 | | |
Dividends
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (31,700) | | | | | | (31,700) | | |
Stock-based compensation expense
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 914 | | | | | | — | | | | | | 914 | | |
Balances as of March 31, 2020
|
| | | | — | | | | | $ | — | | | | | | 132,111,329 | | | | | $ | 132 | | | | | $ | 1,210,034 | | | | | $ | (29,201) | | | | | $ | 1,180,965 | | |
Issuance of shares from vested RSUs
|
| | | | — | | | | | | — | | | | | | 119,855 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net Income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 19,759 | | | | | | 19,759 | | |
Dividends
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (23,793) | | | | | | (23,793) | | |
Stock-based compensation expense
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 967 | | | | | | — | | | | | | 967 | | |
Balances as of June 30, 2020
|
| | | | — | | | | | $ | — | | | | | | 132,231,184 | | | | | $ | 132 | | | | | $ | 1,211,001 | | | | | $ | (33,235) | | | | | $ | 1,177,898 | | |
| | |
Class A Units
|
| |
Class P Units
|
| |
Preferred Units
|
| |
Additional
Paid-in Capital |
| |
Retained
Earnings (Accumulated Deficit) |
| | ||||||||||||||||||||||||||||||||||||||
| | |
Units
|
| |
Amount
|
| |
Units
|
| |
Amount
|
| |
Units(1)
|
| |
Amount
|
| |
Total
|
| |||||||||||||||||||||||||||||||||
Balances as of December 31, 2018 (Predecessor)
|
| | | | 20,950 | | | | | $ | 1 | | | | | | 50 | | | | | $ | — | | | | | | 6,827,701 | | | | | $ | 684,979 | | | | | $ | 767 | | | | | $ | (637) | | | | | $ | 685,110 | | |
Contributions
|
| | | | 850 | | | | | | 200 | | | | | | — | | | | | | — | | | | | | 796,028 | | | | | | 79,535 | | | | | | — | | | | | | — | | | | | | 79,735 | | |
Reinvestments
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 71,086 | | | | | | 7,094 | | | | | | — | | | | | | — | | | | | | 7,094 | | |
Net Income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 24,989 | | | | | | 24,989 | | |
Distributions
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (24,134) | | | | | | (24,134) | | |
Redemptions
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (133,513) | | | | | | (13,331) | | | | | | — | | | | | | — | | | | | | (13,331) | | |
Compensation expense related to grant of profits interest
|
| | | | (100) | | | | | | — | | | | | | 100 | | | | | | — | | | | | | — | | | | | | — | | | | | | 734 | | | | | | — | | | | | | 734 | | |
Grants of restricted units
|
| | | | 150 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 134 | | | | | | — | | | | | | 134 | | |
Balances as of March 31, 2019 (Predecessor)
|
| | | | 21,850 | | | | | $ | 201 | | | | | | 150 | | | | | $ | — | | | | | | 7,561,302 | | | | | $ | 758,277 | | | | | $ | 1,635 | | | | | $ | 218 | | | | | $ | 760,331 | | |
Contributions
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,441,711 | | | | | | 122,414 | | | | | | — | | | | | | — | | | | | | 122,414 | | |
Reinvestments
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 86,222 | | | | | | 8,594 | | | | | | — | | | | | | — | | | | | | 8,594 | | |
Net Income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 31,200 | | | | | | 31,200 | | |
Distributions
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (29,125) | | | | | | (29,125) | | |
Redemptions
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (227,248) | | | | | | (22,927) | | | | | | — | | | | | | — | | | | | | (22,927) | | |
Grants of restricted units
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 170 | | | | | | — | | | | | | 170 | | |
Balances as of June 30, 2019 (Predecessor)
|
| | | | 21,850 | | | | | $ | 201 | | | | | | 150 | | | | | $ | — | | | | | | 8,861,987 | | | | | $ | 866,358 | | | | | $ | 1,805 | | | | | $ | 2,293 | | | | | $ | 870,657 | | |
| | |
Successor
Six Months Ended June 30, 2020 |
| |
Predecessor
Six Months Ended June 30, 2019(1) |
| ||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Net income
|
| | | $ | 47,038 | | | | | $ | 56,189 | | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | |
Amortization
|
| | | | (821) | | | | | | — | | |
Depreciation
|
| | | | 36 | | | | | | 34 | | |
Compensation expense related to grant of profits interest
|
| | | | — | | | | | | 734 | | |
Stock-based compensation expense for restricted stock units
|
| | | | 1,881 | | | | | | — | | |
Grants of restricted units
|
| | | | — | | | | | | 304 | | |
Provision for loan losses
|
| | | | 3,931 | | | | | | 73 | | |
Write down of investment in real property
|
| | | | — | | | | | | 519 | | |
Change in fair value of optional subscription liabilities
|
| | | | (3,146) | | | | | | — | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Interest and fees receivable
|
| | | | (4,878) | | | | | | (4,284) | | |
Deferred income
|
| | | | 4,887 | | | | | | — | | |
Change in other assets
|
| | | | (1,385) | | | | | | (363) | | |
Accounts payable and accrued liabilities
|
| | | | (775) | | | | | | 816 | | |
Net cash provided by operating activities
|
| | | | 46,768 | | | | | | 54,022 | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Investments in fixed assets
|
| | | | — | | | | | | (67) | | |
Proceeds from sale of real property
|
| | | | 2,213 | | | | | | 6,139 | | |
Improvements to investments in real property
|
| | | | (66) | | | | | | (210) | | |
Change in mortgage notes receivable
|
| | | | (5,759) | | | | | | (132,497) | | |
Net cash provided by (used in) investing activities
|
| | | | (3,612) | | | | | | (126,635) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Contributions from members
|
| | | | — | | | | | | 203,005 | | |
Contributions received in advance
|
| | | | — | | | | | | 15,395 | | |
Dividends paid
|
| | | | (63,401) | | | | | | — | | |
Distributions
|
| | | | — | | | | | | (36,174) | | |
Redemptions of members
|
| | | | — | | | | | | (36,258) | | |
Net cash provided by (used in) financing activities
|
| | | | (63,401) | | | | | | 145,968 | | |
Net increase in cash and cash equivalents
|
| | | | (20,245) | | | | | | 73,355 | | |
Cash and cash equivalents, beginning of period
|
| | | | 238,214 | | | | | | 112,234 | | |
Cash and cash equivalents, end of period
|
| | | $ | 217,969 | | | | | $ | 185,589 | | |
Supplemental disclosure of non-cash investing and financing activities
|
| | | | | | | | | | | | |
Dividends payable
|
| | | | 7,934 | | | | | | — | | |
Reinvested distributions
|
| | | | — | | | | | | 15,688 | | |
Measurement period adjustment to goodwill and intangible assets
|
| | | | 5,000 | | | | | | — | | |
Consideration paid:
|
| |
$(in thousands)
|
| |||
Cash
|
| | | $ | 102,245 | | |
Common stock
|
| | | | 479,619 | | |
Total consideration paid
|
| | | $ | 581,864 | | |
Assets acquired: | | | | | | | |
Cash and cash equivalents
|
| | | | 88,505 | | |
Investment in real property
|
| | | | 8,413 | | |
Mortgage notes receivable
|
| | | | 344,837 | | |
Interest and fees receivable
|
| | | | 2,743 | | |
Intangible assets
|
| | | | 1,000 | | |
Other assets
|
| | | | 174 | | |
Total Assets
|
| | | | 445,672 | | |
Liabilities assumed: | | | | | | | |
Accounts payable and accrued liability
|
| | | | 205 | | |
Other liabilities
|
| | | | 568 | | |
Total Liabilities
|
| | | | 773 | | |
Net assets acquired
|
| | | | 444,899 | | |
Goodwill
|
| | | $ | 136,965 | | |
(dollars in thousands)
|
| |
June 30, 2020
|
| |
December 31, 2019
|
| ||||||
Total loan commitments
|
| | | $ | 1,121,521 | | | | | $ | 1,101,275 | | |
Less: | | | | | | | | | | | | | |
Construction holdbacks(1)
|
| | | | 260,401 | | | | | | 253,708 | | |
Interest reserves(1)
|
| | | | 21,907 | | | | | | 18,601 | | |
Private REIT participation(2)
|
| | | | 6,931 | | | | | | — | | |
Total principal outstanding for our mortgage notes receivable
|
| | | | 832,282 | | | | | | 828,966 | | |
Less: | | | | | | | | | | | | | |
Allowance for loan losses
|
| | | | 6,795 | | | | | | 4,096 | | |
Deferred fees
|
| | | | 8,168 | | | | | | 3,281 | | |
Mortgage notes receivable, net
|
| | | $ | 817,319 | | | | | $ | 821,589 | | |
(dollars in thousands)
|
| |
Three Months Ended
June 30, 2020 |
| |
Three Months Ended
June 30, 2019 |
| |
Six Months Ended
June 30, 2020 |
| |
Six Months Ended
June 30, 2019 |
| ||||||||||||
Beginning
|
| | | $ | 7,182 | | | | | $ | 1,480 | | | | | $ | 4,096 | | | | | $ | 1,704 | | |
Provision for loan losses (benefits)
|
| | | | 309 | | | | | | 297 | | | | | | 3,931 | | | | | | 73 | | |
Charge offs
|
| | | | (696) | | | | | | — | | | | | | (1,232) | | | | | | — | | |
Ending
|
| | | $ | 6,795 | | | | | $ | 1,777 | | | | | $ | 6,795 | | | | | $ | 1,777 | | |
| | |
June 30, 2020
|
| |
Fair Value Measurements Using
|
| ||||||||||||||||||||||||
(dollars in thousands)
|
| |
Carrying
Value |
| |
Estimated
Fair Value |
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |||||||||||||||
Financial Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 217,969 | | | | | $ | 217,969 | | | | | $ | 217,969 | | | | | $ | — | | | | | $ | — | | |
Mortgage notes receivable, net
|
| | | | 817,319 | | | | | | 817,319 | | | | | | — | | | | | | — | | | | | | 817,319 | | |
Interest and fees receivable
|
| | | | 8,986 | | | | | | 8,986 | | | | | | — | | | | | | 8,986 | | | | | | — | | |
Investment in real property, net
|
| | | | 3,690 | | | | | | 3,690 | | | | | | — | | | | | | — | | | | | | 3,690 | | |
Financial Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable and accrued liabilities(1)
|
| | | $ | 4,494 | | | | | $ | 4,494 | | | | | $ | — | | | | | $ | 2,148 | | | | | $ | 2,346 | | |
| | |
December 31, 2019
|
| |
Fair Value Measurements Using
|
| ||||||||||||||||||||||||
(dollars in thousands)
|
| |
Carrying
Value |
| |
Estimated
Fair Value |
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |||||||||||||||
Financial Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 238,214 | | | | | $ | 238,214 | | | | | $ | 238,214 | | | | | $ | — | | | | | $ | — | | |
Mortgage notes receivable, net
|
| | | | 821,589 | | | | | | 821,589 | | | | | | — | | | | | | — | | | | | | 821,589 | | |
Interest and fees receivable
|
| | | | 4,108 | | | | | | 4,108 | | | | | | — | | | | | | 4,108 | | | | | | — | | |
Investment in real property, net
|
| | | | 5,837 | | | | | | 5,837 | | | | | | — | | | | | | — | | | | | | 5,837 | | |
Financial Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable and accrued liabilities(1)
|
| | | $ | 8,415 | | | | | $ | 8,415 | | | | | $ | — | | | | | $ | 2,923 | | | | | $ | 5,492 | | |
| | |
Level 3
|
| | | | ||||||||||||||||||
(dollars in thousands)
|
| |
June 30, 2020
|
| |
December 31, 2019
|
| |
Valuation
technique |
| |
Unobservable
inputs |
| |
Range of
inputs |
| |||||||||
Optional subscription liability(1)
|
| | | $ | 2,346 | | | | | $ | 5,492 | | | | Valuation model | | |
Refer to Note 7 for assumptions
|
| | | | 0 – 5% | | |
Real property(2)
|
| | | | 3,690 | | | | | | 5,837 | | | |
Collateral valuations
|
| |
Discount to appraised value based on comparable market prices
|
| | | | 0 – 10% | | |
Non-performing and
impaired loans, net of allowance for loan losses(3) |
| | | | 211,467 | | | | | | 28,853 | | | |
Collateral valuations
|
| |
Discount to appraised value based on comparable market prices
|
| | | | 0 – 10% | | |
Total
|
| | | $ | 217,503 | | | | | $ | 40,182 | | | | | | | | | | | | | | |
(dollars in thousands)
|
| |
Acquired
Intangibles |
| |||
Asset Type
|
| | | | | | |
Customer relationships
|
| | | $ | 1,000 | | |
Less: Accumulated amortization
|
| | | | 209 | | |
Intangible assets, net
|
| | | $ | 791 | | |
| | |
Year ended December 31,
|
| |||||||||||||||
(dollars in thousands)
|
| |
2020
|
| |
2021
|
| |
2022
|
| |||||||||
Estimated future intangible amortization expense
|
| | |
$
|
168
|
| | | |
$
|
333
|
| | | |
$
|
290
|
| |
| | |
As of June 30, 2020
|
| |
As of December 31, 2019
|
| ||||||
Expected volatility
|
| | | | 64.0% | | | | | | 13.0% | | |
Expected dividend yield
|
| | | | 7.6% | | | | | | 7.3% | | |
Expected life (in years)
|
| | | | 0.4 | | | | | | 0.9 | | |
Risk-free interest rate
|
| | | | 0.2% | | | | | | 1.6% | | |
(dollars in thousands, except share and per share data):
|
| |
Three Months Ended
June 30, 2020 |
| |
Six Months Ended
June 30, 2020 |
| ||||||
Basic Earnings | | | | | | | | | | | | | |
Net income and Basic Earnings
|
| | | $ | 19,759 | | | | | $ | 47,038 | | |
Diluted Earnings | | | | | | | | | | | | | |
Net income and Diluted Earnings
|
| | | $ | 19,759 | | | | | $ | 47,038 | | |
Number of Shares: | | | | | | | | | | | | | |
Basic weighted-average shares of common stock
outstanding |
| | | | 132,165,005 | | | | | | 132,120,290 | | |
Shares for warrants and restricted stock units
|
| | | | — | | | | | | — | | |
Diluted weighted-average shares of common stock outstanding(1)
|
| | | | 132,165,005 | | | | | | 132,120,290 | | |
Earnings Per Share Attributable to common stockholders | | | | | | | | | | | | | |
Basic
|
| | | $ | 0.15 | | | | | $ | 0.36 | | |
Diluted
|
| | | $ | 0.15 | | | | | $ | 0.36 | | |
| | |
Shares
|
| |
Weighted Average
Grant Date Fair Market Value |
| ||||||
Unvested RSUs outstanding as of January 1, 2020
|
| | | | 334,928 | | | | | $ | 11.08 | | |
Granted
|
| | | | 186,759 | | | | | | 11.77 | | |
Vested
|
| | | | (95,694) | | | | | | 11.08 | | |
Unvested RSUs outstanding as of March 31, 2020
|
| | | | 425,993 | | | | | | | | |
Granted
|
| | | | 47,226 | | | | | | 9.64 | | |
Vested
|
| | | | (119,855) | | | | | $ | 11.08 | | |
Unvested RSUs outstanding as of June 30, 2020
|
| | | | 353,364 | | | | | | | | |
(dollars in thousands)
|
| |
Total
|
| |
Less than 1
year |
| |
1-3 years
|
| |
3-5 years
|
| |
More than
5 years |
| |||||||||||||||
Operating lease obligations
|
| | | $ | 12,076 | | | | | $ | 647 | | | | | $ | 1,879 | | | | | $ | 1,993 | | | | | $ | 7,557 | | |
Construction holdbacks
|
| | | | 260,401 | | | | | | 230,435 | | | | | | 29,966 | | | | | | — | | | | | | — | | |
Total
|
| | | $ | 272,477 | | | | | $ | 231,082 | | | | | $ | 31,845 | | | | | $ | 1,993 | | | | | $ | 7,557 | | |
| | |
Successor
December 31, 2019 |
| |
Predecessor
December 31, 2018(1) |
| ||||||
Assets | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 238,214 | | | | | $ | 112,234 | | |
Mortgage notes receivable, net
|
| | | | 821,589 | | | | | | 589,572 | | |
Interest and fees receivable
|
| | | | 4,108 | | | | | | 2,053 | | |
Investment in real property, net
|
| | | | 5,837 | | | | | | 12,091 | | |
Right-of-use assets
|
| | | | 518 | | | | | | — | | |
Intangible assets, net
|
| | | | 4,970 | | | | | | — | | |
Goodwill
|
| | | | 131,965 | | | | | | — | | |
Other Assets
|
| | | | 1,528 | | | | | | 1,916 | | |
Total assets
|
| | | $ | 1,208,729 | | | | | $ | 717,866 | | |
Liabilities and Equity | | | | | | | | | | | | | |
Accounts payable and accrued liabilities
|
| | | $ | 7,897 | | | | | $ | 1,915 | | |
Dividends payable
|
| | | | 15,842 | | | | | | 6,334 | | |
Lease liabilities
|
| | | | 518 | | | | | | — | | |
Contributions received in advance
|
| | | | — | | | | | | 24,507 | | |
Total liabilities
|
| | | | 24,257 | | | | | | 32,756 | | |
Commitments and Contingencies | | | | | | | | | | | | | |
Common stock, $0.001 and $0.00 par value, 500,000,000 and 0 shares
authorized, 132,015,635 and 0 shares issued and outstanding at December 31, 2019 and 2018 |
| | | | 132 | | | | | | — | | |
Preferred Stock and Units, $0.001 and $0.00 par value, 100,000,000 and
0 shares/units authorized, 0 and 6,827,701 shares/units issued and outstanding at December 31, 2019 and 2018 |
| | | | — | | | | | | 684,979 | | |
Additional Paid in Capital
|
| | | | 1,209,120 | | | | | | 767 | | |
Retained earnings/(Accumulated deficit)
|
| | | | (24,780) | | | | | | (637) | | |
Predecessor Equity
|
| | | | — | | | | | | 1 | | |
Total equity
|
| | | | 1,184,472 | | | | | | 685,110 | | |
Total liabilities and equity
|
| | | $ | 1,208,729 | | | | | $ | 717,866 | | |
| | |
Successor
|
| | |
Predecessor
|
| |
Predecessor
|
| |
Predecessor
|
| ||||||||||||
| | |
Period from
November 15, 2019 through December 31, 2019 |
| | |
Period from
January 1, 2019 through November 14, 2019(2) |
| |
Year Ended
December 31, 2018(2) |
| |
Year Ended
December 31, 2017(2) |
| ||||||||||||
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income
|
| | | $ | 13,207 | | | | | | $ | 82,225 | | | | | $ | 58,429 | | | | | $ | 31,772 | | |
Fee income
|
| | | | 2,767 | | | | | | | 32,785 | | | | | | 37,417 | | | | | | 20,447 | | |
Total Revenue
|
| | | | 15,974 | | | | | | | 115,010 | | | | | | 95,846 | | | | | | 52,219 | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | |
Impairment: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loan loss provision
|
| | | | — | | | | | | | 3,342 | | | | | | 1,783 | | | | | | 330 | | |
Other Expense: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Change in fair value of warrant liabilities
|
| | | | 4,924 | | | | | | | — | | | | | | — | | | | | | — | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Compensation and employee benefits
|
| | | | 2,527 | | | | | | | 5,554 | | | | | | 3,945 | | | | | | 1,797 | | |
General and administrative
|
| | | | 2,843 | | | | | | | 10,402 | | | | | | 8,278 | | | | | | 4,704 | | |
Transaction costs
|
| | | | 367 | | | | | | | 25,789 | | | | | | — | | | | | | — | | |
Total Expenses
|
| | | | 10,661 | | | | | | | 45,087 | | | | | | 14,006 | | | | | | 6,831 | | |
Income before income taxes
|
| | | | 5,313 | | | | | | | 69,923 | | | | | | 81,840 | | | | | | 45,388 | | |
Income tax provision
|
| | | | — | | | | | | | — | | | | | | 90 | | | | | | — | | |
Net income
|
| | | $ | 5,313 | | | | | | $ | 69,923 | | | | | $ | 81,750 | | | | | $ | 45,388 | | |
Earnings per common share:(1) | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | $ | 0.04 | | | | | | | | | | | | | | | | | | | | | |
Diluted
|
| | | $ | 0.04 | | | | | | | | | | | | | | | | | | | | | |
Weighted-average shares of common stock outstanding, basic and diluted
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | 132,111,329 | | | | | | | | | | | | | | | | | | | | | |
Diluted
|
| | | | 132,499,386 | | | | | | | | | | | | | | | | | | | | | |
| | |
Class A Units
|
| |
Class P Units
|
| |
Preferred Units
|
| |
Additional
Paid in Capital |
| |
Retained
Earnings (Accumulated Deficit) |
| | | | | | | |||||||||||||||||||||||||||||||||
| | |
Units
|
| |
Amount
|
| |
Units
|
| |
Amount
|
| |
Units(1)
|
| |
Amount
|
| |
Total
|
| |||||||||||||||||||||||||||||||||
Balances at January 1, 2017 (Predecessor)(3)
|
| | | | 11,000 | | | | | $ | 1 | | | | |
|
—
|
| | | | $ | — | | | | |
|
—
|
| | | | $ | 250,912 | | | | | $ | 189 | | | | | $ | 491 | | | | | $ | 251,593 | | |
Contributions
|
| | | | 8,500 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 130,645 | | | | | | — | | | | | | — | | | | | | 130,645 | | |
Reinvestments
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 11,951 | | | | | | — | | | | | | — | | | | | | 11,951 | | |
Net Income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 45,388 | | | | | | 45,388 | | |
Distributions
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (46,340) | | | | | | (46,340) | | |
Redemptions
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (10,913) | | | | | | — | | | | | | — | | | | | | (10,913) | | |
Grants of restricted stock
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 67 | | | | | | — | | | | | | 67 | | |
Balances at December 31, 2017 (Predecessor)(3)
|
| | | | 19,500 | | | | | $ | 1 | | | | | | — | | | | | $ | — | | | | | | — | | | | | $ | 382,595 | | | | | $ | 256 | | | | | $ | (461) | | | | | $ | 382,391 | | |
Contributions
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 308,426,581 | | | | | | 308,426 | | | | | | — | | | | | | — | | | | | | 308,426 | | |
Reinvestments
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 21,477,478 | | | | | | 21,478 | | | | | | — | | | | | | — | | | | | | 21,478 | | |
Net Income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | `81,750 | | | | | | 81,750 | | |
Distributions
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (81,926) | | | | | | (81,926) | | |
Redemptions
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (27,520,106) | | | | | | (27,520) | | | | | | — | | | | | | — | | | | | | (27,520) | | |
REIT Conversion, net(2)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (295,566,252) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Compensation expense related to grant of profits interest
|
| | | | (50) | | | | | | — | | | | | | 50 | | | | | | — | | | | | | — | | | | | | — | | | | | | 259 | | | | | | — | | | | | | 259 | | |
Grants of restricted stock
|
| | | | 1,500 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 252 | | | | | | — | | | | | | 252 | | |
Balances as of December 31, 2018 (Predecessor)(3)
|
| | | | 20,950 | | | | | $ | 1 | | | | | | 50 | | | | | $ | — | | | | | | 6,827,701 | | | | | $ | 684,979 | | | | | $ | 767 | | | | | $ | (637) | | | | | $ | 685,110 | | |
Contributions
|
| | | | 850 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,563,859 | | | | | | 356,386 | | | | | | — | | | | | | — | | | | | | 356,386 | | |
Reinvestments
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 336,366 | | | | | | 33,637 | | | | | | — | | | | | | — | | | | | | 33,637 | | |
Net Income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 69,923 | | | | | | 69,923 | | |
Distributions
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (102,204) | | | | | | (102,204) | | |
Redemptions
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,555,623) | | | | | | (155,744) | | | | | | — | | | | | | — | | | | | | (155,744) | | |
Compensation expense related to grant of profits interests
|
| | | | (100) | | | | | | — | | | | | | 100 | | | | | | — | | | | | | — | | | | | | — | | | | | | 734 | | | | | | — | | | | | | 734 | | |
Compensation expense related to grants of restricted stock units
|
| | | | 150 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 474 | | | | | | — | | | | | | 474 | | |
Balances as of November 14, 2019 (Predecessor)(3)
|
| | | | 21,850 | | | | | $ | 1 | | | | | | 150 | | | | | $ | — | | | | | | 9,172,303 | | | | | $ | 919,258 | | | | | $ | 1,975 | | | | | $ | (32,918) | | | | | $ | 888,316 | | |
|
| | |
Preferred
|
| |
Common stock
|
| |
Additional
Paid-in Capital |
| |
Retained
Earnings (Accumulated Deficit) |
| |
Total
|
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balances as of November 14, 2019 BRELF II, LLC
|
| | | | 4,655,758 | | | | | $ | 467,235 | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | (12,259) | | | | | $ | 454,976 | | |
Recapitalization of BRELF II, LLC and Broadmark
|
| | | | (4,655,758) | | | | | | (467,235) | | | | | | 86,118,101 | | | | | | 86 | | | | | | 794,798 | | | | | | (1,992) | | | | | | 325,657 | | |
Consent fee paid to warrant holders
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (66,679) | | | | | | — | | | | | | (66,679) | | |
Issuance of shares in connection with Business Combination
|
| | | | — | | | | | | — | | | | | | 45,896,534 | | | | | | 46 | | | | | | 479,573 | | | | | | — | | | | | | 479,619 | | |
Issuance of shares from the exercise of warrants
|
| | | | — | | | | | | — | | | | | | 1000 | | | | | | — | | | | | | 11 | | | | | | — | | | | | | 11 | | |
Net Income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,313 | | | | | | 5,313 | | |
Dividends
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (15,842) | | | | | | (15,842) | | |
Share based compensation expense
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,417 | | | | | | — | | | | | | 1,417 | | |
Balances as of December 31, 2019 (Successor)
|
| | | | — | | | | | $ | — | | | | | | 132,015,635 | | | | | $ | 132 | | | | | $ | 1,209,120 | | | | | $ | (24,780) | | | | | $ | 1,184,472 | | |
|
| | |
Successor
|
| | |
Predecessor
|
| |
Predecessor
|
| |
Predecessor
|
| ||||||||||||
(dollars in thousands)
|
| |
Period from
November 15, 2019 through December 31, 2019 |
| | |
Period from
January 1, 2019 through November 14, 2019(1) |
| |
Year Ended
December 31, 2018(1) |
| |
Year Ended
December 31, 2017(1) |
| ||||||||||||
Cash flows from operating activities | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income
|
| | | $ | 5,313 | | | | | | $ | 69,923 | | | | | $ | 81,750 | | | | | $ | 45,388 | | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Amortization
|
| | | | 1,030 | | | | | | | 1 | | | | | | 1 | | | | | | 1 | | |
Depreciation
|
| | | | 8 | | | | | | | 111 | | | | | | 96 | | | | | | 48 | | |
Compensation expense related to grant of profits interest
|
| | | | — | | | | | | | 734 | | | | | | 259 | | | | | | — | | |
Share-based compensation expense for restricted stock units
|
| | | | 1,417 | | | | | | | — | | | | | | — | | | | | | — | | |
Compensation expense related to grant of Class A units
|
| | | | — | | | | | | | 474 | | | | | | — | | | | | | — | | |
Grants of restricted units
|
| | | | — | | | | | | | — | | | | | | 252 | | | | | | 67 | | |
Provision for loan losses
|
| | | | — | | | | | | | 3,342 | | | | | | 1,783 | | | | | | 330 | | |
Gain on sale of real property
|
| | | | — | | | | | | | — | | | | | | (317) | | | | | | — | | |
Write down of investment in real property
|
| | | | — | | | | | | | 179 | | | | | | — | | | | | | — | | |
Change in unrealized loss on investments in real property
|
| | | | — | | | | | | | — | | | | | | 167 | | | | | | — | | |
Fair value adjustment to warranty liability
|
| | | | 4,924 | | | | | | | — | | | | | | — | | | | | | — | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Change in fees receivable from escrow
|
| | | | — | | | | | | | — | | | | | | (319) | | | | | | (395) | | |
Interest and fees receivable
|
| | | | 1,908 | | | | | | | (5,134) | | | | | | (882) | | | | | | 1,440 | | |
Investment in real property
|
| | | | — | | | | | | | — | | | | | | — | | | | | | (51) | | |
Change in other assets
|
| | | | (1,291) | | | | | | | (290) | | | | | | (2,388) | | | | | | 192 | | |
Accounts payable and accrued liabilities
|
| | | | (7,669) | | | | | | | 22,158 | | | | | | 1,100 | | | | | | 938 | | |
Net cash provided by operating activities
|
| | | | 5,640 | | | | | | | 91,498 | | | | | | 81,502 | | | | | | 47,958 | | |
Cash flows from investing activities: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash paid for acquisitions, net of cash acquired
|
| | | | (13,740) | | | | | | | — | | | | | | — | | | | | | — | | |
Investments in fixed assets
|
| | | | — | | | | | | | (268) | | | | | | (261) | | | | | | (6) | | |
Proceeds from sale of real property
|
| | | | 2,577 | | | | | | | 6,363 | | | | | | 6,970 | | | | | | — | | |
Improvements to investments in real property
|
| | | | — | | | | | | | (308) | | | | | | (1,790) | | | | | | — | | |
Investments in mortgage notes receivable
|
| | | | (14,729) | | | | | | | (222,178) | | | | | | (280,569) | | | | | | (127,790) | | |
Net cash used in investing activities
|
| | | | (25,892) | | | | | | | (216,391) | | | | | | (275,650) | | | | | | (127,796) | | |
Cash flows from financing activities: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Proceeds from recapitalization with Trinity Merger Sub
|
| | | | 327,056 | | | | | | | — | | | | | | — | | | | | | — | | |
Contributions from members
|
| | | | — | | | | | | | 356,386 | | | | | | 308,426 | | | | | | 130,645 | | |
Contributions received in advance
|
| | | | — | | | | | | | (24,507) | | | | | | 17,137 | | | | | | 4,957 | | |
Dividends paid
|
| | | | — | | | | | | | — | | | | | | 2,640 | | | | | | 1,172 | | |
Distributions
|
| | | | (1,992) | | | | | | | (74,900) | | | | | | (60,448) | | | | | | (34,327) | | |
Redemptions of members
|
| | | | — | | | | | | | (155,744) | | | | | | (27,520) | | | | | | (10,913) | | |
Proceeds from exercise of warrants
|
| | | | 11 | | | | | | | — | | | | | | — | | | | | | — | | |
Consent fee paid to holders of Public Warrants
|
| | | | (66,679) | | | | | | | — | | | | | | — | | | | | | — | | |
Net cash provided by financing activities
|
| | | | 258,396 | | | | | | | 101,235 | | | | | | 240,235 | | | | | | 91,534 | | |
Net change in cash and cash equivalents
|
| | | | 238,144 | | | | | | | (23,658) | | | | | | 46,087 | | | | | | 11,696 | | |
Cash and cash equivalents, beginning of period
|
| | | | 70 | | | | | | | 112,234 | | | | | | 66,147 | | | | | | 54,451 | | |
Cash and cash equivalents, end of period
|
| | | $ | 238,214 | | | | | | $ | 88,576 | | | | | $ | 112,234 | | | | | $ | 66,147 | | |
Supplemental disclosure of non-cash investing and financing activities
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
Common stock issued in connection with the Business Combination
|
| | | $ | 479,619 | | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Common stock issued in connection with the Recapitalization of BRELF II
|
| | | | 495,496 | | | | | | | — | | | | | | — | | | | | | — | | |
Common stock issued for transaction expenses in connection with Business Combination
and Recapitalization |
| | | | 1,391 | | | | | | | — | | | | | | — | | | | | | — | | |
Assumption of consent fee liability in connection with the recapitalization with Trinity Merger Sub I, Inc.
|
| | | | 66,679 | | | | | | | — | | | | | | — | | | | | | — | | |
Dividends payable
|
| | | | 15,842 | | | | | | | — | | | | | | — | | | | | | — | | |
Reinvested distributions
|
| | | | — | | | | | | | 33,637 | | | | | | 21,478 | | | | | | 11,951 | | |
Mortgage notes receivable converted to real property owned
|
| | | | — | | | | | | | 2,046 | | | | | | 7,316 | | | | | | 5,210 | | |
| | |
$ (in thousands)
|
| |||
Consideration paid: | | | | | | | |
Cash
|
| | | $ | 102,245 | | |
Common stock
|
| | | | 479,619 | | |
Total consideration paid
|
| | | $ | 581,864 | | |
Assets acquired: | | | | | | | |
Cash and cash equivalents
|
| | | | 88,505 | | |
Investment in real property
|
| | | | 8,413 | | |
Mortgage notes receivable
|
| | | | 344,837 | | |
Interest and fees receivable
|
| | | | 2,743 | | |
Intangible assets
|
| | | | 6,000 | | |
Other assets
|
| | | | 174 | | |
Total Assets
|
| | | | 450,672 | | |
Liabilities assumed: | | | | | | | |
Accounts payable and accrued liability
|
| | | | 205 | | |
Other liabilities
|
| | | | 568 | | |
Total Liabilities
|
| | | | 773 | | |
Net assets acquired
|
| | | | 449,899 | | |
Goodwill
|
| | | $ | 131,965 | | |
| | |
Successor
|
| |
Predecessor
|
| ||||||
(dollars in thousands)
|
| |
At December 31, 2019
|
| |
At December 31, 2018
|
| ||||||
Current mortgage notes receivable
|
| | | $ | 796,017 | | | | | $ | 580,003 | | |
Defaulted and impaired loans(1)
|
| | | | 32,949 | | | | | | 11,273 | | |
Outstanding balances for mortgage notes receivable before deferred fees and allowance for loan losses
|
| | | | 828,966 | | | | | | 591,276 | | |
Less: | | | | | | | | | | | | | |
Deferred fees
|
| | | | 3,281 | | | | | | — | | |
Allowance for loan losses
|
| | | | 4,096 | | | | | | 1,704 | | |
Carrying value for mortgage notes receivable
|
| | | $ | 821,589 | | | | | $ | 589,572 | | |
(dollars in thousands)
|
| |
Allowance for
loans in default |
| |
Total
reserves |
| ||||||
Beginning January 1, 2018 (Predecessor)
|
| | | $ | — | | | | | $ | — | | |
Provision for loan losses
|
| | | | 1,783 | | | | | | 1,783 | | |
Charge offs
|
| | | | (340) | | | | | | (340) | | |
Recoveries
|
| | | | 261 | | | | | | 261 | | |
Ending December 31, 2018 (Predecessor)
|
| | | | 1,704 | | | | | | 1,704 | | |
Provision for loan losses
|
| | | | 3,342 | | | | | | 3,342 | | |
Charge offs
|
| | | | (452) | | | | | | (452) | | |
Recoveries
|
| | | | — | | | | | | — | | |
Ending November 14, 2019 (Predecessor)
|
| | | | 4,594 | | | | | | 4,594 | | |
Beginning November 15, 2019 (Successor)(1)
|
| | | | 4,096 | | | | | | 4,096 | | |
Provision for loan losses
|
| | | | — | | | | | | — | | |
Charge offs
|
| | | | — | | | | | | — | | |
Recoveries
|
| | | | — | | | | | | — | | |
Ending December 31, 2019 (Successor)
|
| | | $ | 4,096 | | | | | $ | 4,096 | | |
(dollars in thousands)
|
| |
Quoted prices in active
markets for identical assets (Level 1) |
| |
Significant other
observable inputs (Level 2) |
| |
Significant other
unobservable inputs (Level 3) |
| |||||||||
Warrant Liability(A)
|
| | | $ | — | | | | | $ | — | | | | | $ | 5,492 | | |
Real property(B)
|
| | | | — | | | | | | — | | | | | | 5,837 | | |
Mortgage notes receivable(C)
|
| | | | — | | | | | | — | | | | | | 821,589 | | |
Total
|
| | | $ | — | | | | | $ | — | | | | | $ | 832,918 | | |
| | |
Quotes prices in active
markets for identical assets (Level 1) |
| |
Significant other
observable inputs (Level 2) |
| |
Significant other
unobservable inputs (Level 3) |
| |||||||||
Real estate property(A)
|
| | | $ | — | | | | | $ | — | | | | | $ | 12,091 | | |
Mortgage notes receivable(B)
|
| | | | — | | | | | | — | | | | | | 589,572 | | |
Total
|
| | | $ | — | | | | | $ | — | | | | | $ | 601,663 | | |
Investments
|
| |
At December 31,
2019 |
| |
At December 31,
2018 |
| |
Valuation
technique |
| |
Unobservable
input |
| |
Range of
inputs |
| ||||||
(dollars in thousands)
|
| |
(Successor)
|
| |
(Predecessor)
|
| | | | | | | | | | ||||||
Warrant liability
|
| | | $ | 5,492 | | | | | $ | — | | | | Valuation Model | | | Equity Volatility | | | 0% – 5% | |
Mortgage notes receivable
|
| | | | 821,589 | | | | | | 589,572 | | | |
Market Comparable
|
| |
Adjustment to
Appraisal Value |
| | 0% – 10% | |
Real property
|
| | | | 5,837 | | | | | | 12,091 | | | |
Market Comparable
|
| |
Adjustment to
Appraisal Value |
| | 0% – 10% | |
Total
|
| | | $ | 832,918 | | | | | $ | 601,663 | | | | | | | | | | | |
(dollars in thousands)
|
| |
Acquired
Intangibles |
| |||
Asset Type | | | | | | | |
Customer relationships
|
| | | $ | 6,000 | | |
Less Accumulated Amortization
|
| | | | 1,030 | | |
| | | | $ | 4,970 | | |
| | |
Year ended December 31,
|
| |||||||||||||||
(dollars in thousands)
|
| |
2020
|
| |
2021
|
| |
2022
|
| |||||||||
Estimated future intangible amortization expense
|
| | | $ | 1,728 | | | | | $ | 1,728 | | | | | $ | 1,514 | | |
| | |
As of November 15, 2019
|
| |
As of December 31, 2019
|
| ||||||
Expected volatility
|
| | | | 12.0% | | | | | | 13% | | |
Expected dividend yield
|
| | | | 11.3% | | | | | | 7.3% | | |
Expected life (in years)
|
| | | | 1.0 | | | | | | 0.9 | | |
Risk-free interest rate
|
| | | | 1.6% | | | | | | 1.6% | | |
| | |
Successor
|
| |||
(dollars and shares in thousands except per share amounts):
|
| |
Period from November 15,
2019 through December 31, 2019 |
| |||
Basic Earnings | | | | | | | |
Net income and Basic Earnings
|
| | | $ | 5,313 | | |
Diluted Earnings | | | | | | | |
Net income and Diluted Earnings
|
| | | $ | 5,313 | | |
Number of Shares: | | | | | | | |
Basic weighted-average shares of common stock outstanding(a)
|
| | | | 132,111 | | |
Shares for warrants and restricted stock units
|
| | | | 388 | | |
|
| | |
Successor
|
| |||
(dollars and shares in thousands except per share amounts):
|
| |
Period from November 15,
2019 through December 31, 2019 |
| |||
Diluted weighted-average shares of common stock outstanding(b)
|
| | | | 132,499 | | |
Earnings Per Share Attributable to common stockholders | | | | | | | |
Basic
|
| | | $ | 0.04 | | |
Diluted
|
| | | $ | 0.04 | | |
| | |
Shares
|
| |
Weighted Average
Grant Date Fair Market Value |
| ||||||
Outstanding at November 15, 2019 (Successor)
|
| | | | — | | | | | | — | | |
Granted
|
| | | | 430,622 | | | | | $ | 11.08 | | |
Vested
|
| | | | (95,694) | | | | | $ | 11.08 | | |
Forfeited
|
| | | | — | | | | | | — | | |
Outstanding at December 31, 2019 (Successor)
|
| | | | 334,928 | | | | | $ | 11.08 | | |
| | |
For the
Period from November 15 to December 31, |
| |
For the
Period from October 1 to November 14, |
| |
For the
Quarters Ended September 30, |
| |
For the
Quarters Ended June 30, |
| |
For the
Quarters Ended March 31, |
| |||||||||||||||
(dollars and shares in thousands except per share amounts)
|
| |
Successor
|
| |
Predecessor
|
| ||||||||||||||||||||||||
2019: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue
|
| | | $ | 15,974 | | | | | $ | 14,073 | | | | | $ | 34,581 | | | | | $ | 36,573 | | | | | $ | 29,783 | | |
Net income
|
| | | | 5,313 | | | | | | (12,125) | | | | | | 25,856 | | | | | | 31,202 | | | | | | 24,990 | | |
Earnings per common share data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings per share | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted
|
| | | $ | 0.04 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Weighted average number of common shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | 132,111 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Diluted
|
| | | | 132,499 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | |
For the Quarters Ended
|
| |||||||||||||||||||||
(dollars in thousands)
|
| |
December 31,
|
| |
September 30,
|
| |
June 30,
|
| |
March 31,
|
| ||||||||||||
| | |
Predecessor
|
| |||||||||||||||||||||
2018: | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue
|
| | | $ | 28,972 | | | | | $ | 28,027 | | | | | $ | 21,500 | | | | | $ | 17,348 | | |
Net income
|
| | | | 24,290 | | | | | | 24,520 | | | | | | 18,438 | | | | | | 14,503 | | |
| | |
September 30,
2019 (unaudited) |
| |
December 31,
2018 (audited) |
| ||||||
Assets | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | |
Cash
|
| | | $ | 148,499 | | | | | $ | 650,629 | | |
Prepaid expenses
|
| | | | 74,094 | | | | | | 47,730 | | |
Cash and marketable securities held in Trust Account
|
| | | | 360,197,326 | | | | | | — | | |
Total Current Assets
|
| | | | 360,419,919 | | | | | | 698,359 | | |
Cash and marketable securities held in Trust Account
|
| | | | — | | | | | | 355,633,275 | | |
Total Assets
|
| | | $ | 360,419,919 | | | | | $ | 356,331,634 | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | |
Accounts payable and accrued expenses
|
| | | $ | 3,496,840 | | | | | $ | 130,814 | | |
Income taxes payable
|
| | | | 5,146 | | | | | | 36,021 | | |
Promissory note — related party
|
| | | | 1,000,000 | | | | | | — | | |
Total Current Liabilities
|
| | | | 4,501,986 | | | | | | 166,835 | | |
Deferred underwriting fee payable
|
| | | | 15,525,000 | | | | | | 15,525,000 | | |
Total Liabilities
|
| | | | 20,026,986 | | | | | | 15,691,835 | | |
Commitments | | | | | | | | | | | | | |
Common stock subject to possible redemption, 32,131,082 and 32,572,779 shares at redemption value at September 30, 2019 and December 31, 2018, respectively
|
| | | | 335,392,928 | | | | | | 335,639,798 | | |
Stockholders’ Equity: | | | | | | | | | | | | | |
Preferred stock, $0.0001 par value; 5,000,000 shares authorized; none issued and outstanding
|
| | | | — | | | | | | — | | |
Class A common stock, $0.0001 par value; 400,000,000 shares
authorized; 2,368,918 and 1,927,221 issued and outstanding (excluding 32,131,082 and 32,572,779 shares subject to possible redemption) at September 30, 2019 and December 31, 2018, respectively |
| | | | 237 | | | | | | 193 | | |
Class B common stock, $0.0001 par value; 50,000,000 shares authorized;
8,625,000 shares issued and outstanding at September 30, 2019 and December 31, 2018 |
| | | | 863 | | | | | | 863 | | |
Additional paid-in capital
|
| | | | 2,100,741 | | | | | | 1,853,915 | | |
Retained earnings
|
| | | | 2,898,164 | | | | | | 3,145,030 | | |
Total Stockholders’ Equity
|
| | | | 5,000,005 | | | | | | 5,000,001 | | |
Total Liabilities and Stockholders’ Equity
|
| | | $ | 360,419,919 | | | | | $ | 356,331,634 | | |
| | |
Nine Months
Ended September 30, 2019 |
| |
For the
Period from January 24, 2018 (inception) through September 30, 2018 |
| ||||||
Formation and operating costs
|
| | | $ | 5,050,505 | | | | | $ | 406,603 | | |
Loss from operations
|
| | | | (5,050,505) | | | | | | (406,603) | | |
Other income: | | | | | | | | | | | | | |
Interest income on marketable securities held in Trust Account
|
| | | | 6,119,764 | | | | | | 2,596,644 | | |
(Loss) income before provision for income taxes
|
| | | | 1,069,259 | | | | | | 2,190,041 | | |
Provision for income taxes
|
| | | | (1,316,125) | | | | | | (524,295) | | |
Net (loss) income
|
| | | $ | (246,866) | | | | | $ | 1,665,746 | | |
Weighted average shares outstanding of Class A common stock
|
| | | | 34,500,000 | | | | | | 34,500,000 | | |
Basic and diluted net income per share, Class A
|
| | | $ | 0.13 | | | | | $ | 0.07 | | |
Weighted average shares outstanding of Class B common stock
|
| | | | 8,625,000 | | | | | | 8,625,000 | | |
Basic and diluted net loss per share, Class B
|
| | | $ | (0.56) | | | | | $ | (0.10) | | |
| | |
Class A
Common Stock |
| |
Class B
Common Stock |
| |
Additional
Paid-in Capital |
| |
Retained
Earnings/ (Accumulated Deficit) |
| |
Total
Stockholders’ Equity |
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance – January 24, 2018 (inception)
|
| | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Class B common stock issued to Sponsor
|
| | | | — | | | | | | — | | | | | | 8,625,000 | | | | | | 863 | | | | | | 24,137 | | | | | | — | | | | | | 25,000 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (814) | | | | | | (814) | | |
Balance – March 31, 2018 (unaudited)
|
| | |
|
—
|
| | | |
|
—
|
| | | | | 8,625,000 | | | | | | 863 | | | | | | 24,137 | | | | | | (814) | | | | | | 24,186 | | |
Sale of 34,500,000 Units, net of
underwriting discounts and offering expenses |
| | | | 34,500,000 | | | | | | 3,450 | | | | | | — | | | | | | — | | | | | | 325,116,319 | | | | | | — | | | | | | 325,119,769 | | |
Sale of 12,350,000 Private Placement Warrants
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 12,350,000 | | | | | | — | | | | | | 12,350,000 | | |
Common stock subject to
redemption |
| | | | (32,587,602) | | | | | | (3,259) | | | | | | — | | | | | | — | | | | | | (332,931,834) | | | | | | — | | | | | | (332,935,093) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 441,139 | | | | | | 441,139 | | |
Balance – June 30, 2018 (unaudited)
|
| | | | 1,912,398 | | | | | | 191 | | | | | | 8,625,000 | | | | | | 863 | | | | | | 4,558,622 | | | | | | 440,325 | | | | | | 5,000,001 | | |
Change in value of common stock subject to possible redemption
|
| | | | 6,974 | | | | | | 1 | | | | | | — | | | | | | — | | | | | | (1,225,422) | | | | | | — | | | | | | (1,225,421) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,225,421 | | | | | | 1,225,421 | | |
Balance – September 30, 2018 (unaudited)
|
| | | | 1,919,372 | | | | | $ | 192 | | | | | | 8,625,000 | | | | | $ | 863 | | | | | $ | 3,333,200 | | | | | $ | 1,665,746 | | | | | $ | 5,000,001 | | |
| | |
Class A
Common Stock |
| |
Class B
Common Stock |
| |
Additional
Paid-in Capital |
| |
Retained
Earnings |
| |
Total
Stockholders’ Equity |
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance – January 1, 2019
|
| | | | 1,927,221 | | | | | $ | 193 | | | | | | 8,625,000 | | | | | $ | 863 | | | | | $ | 1,853,915 | | | | | $ | 3,145,030 | | | | | $ | 5,000,001 | | |
Change in value of common stock subject to possible redemption
|
| | | | 18,983 | | | | | | 2 | | | | | | — | | | | | | — | | | | | | (1,358,659) | | | | | | — | | | | | | (1,358,657) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,358,657 | | | | | | 1,358,657 | | |
Balance – March 31, 2019 (unaudited)
|
| | | | 1,946,204 | | | | | | 195 | | | | | | 8,625,000 | | | | | | 863 | | | | | | 495,256 | | | | | | 4,503,687 | | | | | | 5,000,001 | | |
Change in value of common stock subject to possible redemption
|
| | | | 135,944 | | | | | | 13 | | | | | | — | | | | | | — | | | | | | (41,227) | | | | | | — | | | | | | (41,214) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 41,214 | | | | | | 41,214 | | |
Balance – June 30, 2019 (unaudited)
|
| | | | 2,082,148 | | | | | | 208 | | | | | | 8,625,000 | | | | | | 863 | | | | | | 454,029 | | | | | | 4,544,901 | | | | | | 5,000,001 | | |
Change in value of common stock subject to possible redemption
|
| | | | 286,770 | | | | | | 29 | | | | | | — | | | | | | — | | | | | | 1,646,712 | | | | | | — | | | | | | 1,646,741 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,646,737) | | | | | | (1,646,737) | | |
Balance – September 30, 2019
(unaudited) |
| | | | 2,368,918 | | | | | $ | 237 | | | | | | 8,625,000 | | | | | $ | 863 | | | | | $ | 2,100,741 | | | | | $ | 2,898,164 | | | | | $ | 5,000,005 | | |
| | |
Nine Months
Ended September 30, 2019 |
| |
For the Period
from January 24, 2018 (inception) Through September 30, 2018 |
| ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net (loss) income
|
| | | $ | (246,866) | | | | | $ | 1,665,746 | | |
Adjustments to reconcile net (loss) income to net cash used in operating activities:
|
| | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account
|
| | | | (6,119,764) | | | | | | (2,596,644) | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Income tax receivable
|
| | | | — | | | | | | (25,705) | | |
Prepaid expenses
|
| | | | (26,364) | | | | | | (66,169) | | |
Accounts payable and accrued expenses
|
| | | | 3,366,026 | | | | | | 156,465 | | |
Income taxes payable
|
| | | | (30,875) | | | | | | — | | |
Net cash used in operating activities
|
| | | | (3,057,843) | | | | | | (866,307) | | |
Cash Flow from Investing Activities: | | | | | | | | | | | | | |
Investment of cash in Trust Account
|
| | | | — | | | | | | (351,900,000) | | |
Cash withdrawn from Trust Account
|
| | | | 1,555,713 | | | | | | 550,250 | | |
Net cash provided by (used in) investing activities
|
| | | | 1,555,713 | | | | | | (351,349,750) | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | |
Proceeds from issuance of Class B common stock to Sponsor
|
| | | | — | | | | | | 25,000 | | |
Proceeds from sale of Units, net of underwriting discounts paid
|
| | | | — | | | | | | 341,550,000 | | |
Proceeds from sale of Private Placement Warrants
|
| | | | — | | | | | | 12,350,000 | | |
Proceeds from promissory note – related party
|
| | | | 1,000,000 | | | | | | 213,000 | | |
Repayment of promissory note – related party
|
| | | | — | | | | | | (213,000) | | |
Payment of offering costs
|
| | | | — | | | | | | (905,231) | | |
Net cash provided by financing activities
|
| | | | 1,000,000 | | | | | | 353,019,769 | | |
Net Change in Cash
|
| | | | (502,130) | | | | | | 803,712 | | |
Cash – Beginning of the period
|
| | | | 650,629 | | | | | | — | | |
Cash – End of the period
|
| | | $ | 148,499 | | | | | $ | 803,712 | | |
Supplemental cash flow information: | | | | | | | | | | | | | |
Cash paid for income taxes
|
| | | $ | 1,347,000 | | | | | $ | 550,250 | | |
Supplemental disclosure of non-cash investing and financing activities: | | | | | | | | | | | | | |
Initial classification of common stock subject to possible redemption
|
| | | $ | — | | | | | $ | 332,485,331 | | |
Change in value of common stock subject to possible redemption
|
| | | $ | (246,870) | | | | | $ | 1,675,183 | | |
Deferred underwriting fee charged to additional paid in capital
|
| | | $ | — | | | | | $ | 15,525,000 | | |
Held-To-Maturity
|
| |
Amortized
Cost |
| |
Gross
Holding Gains |
| |
Fair Value
|
| |||||||||
September 30, 2019 | | | | | | | | | | | | | | | | | | | |
U.S. Treasury Securities (Mature on 10/22/2019)
|
| | | $ | 360,196,236 | | | | | $ | 24,135 | | | | | $ | 360,220,371 | | |
Total
|
| | | $ | 360,196,236 | | | | | $ | 24,135 | | | | | $ | 360,220,371 | | |
December 31, 2018 | | | | | | | | | | | | | | | | | | | |
U.S. Treasury Securities (Mature on 2/14/2019)
|
| | | $ | 177,713,107 | | | | | $ | 2,169 | | | | | $ | 177,715,276 | | |
U.S. Treasury Securities (Mature on 3/14/2019)
|
| | | | 177,915,883 | | | | | | 11,908 | | | | | | 177,927,791 | | |
Total
|
| | | $ | 355,628,990 | | | | | $ | 14,077 | | | | | $ | 355,643,067 | | |
| Assets | | | | | | | |
| Current Assets | | | | | | | |
|
Cash
|
| | | $ | 650,629 | | |
|
Prepaid expenses
|
| | | | 47,730 | | |
|
Total Current Assets
|
| | | $ | 698,359 | | |
|
Cash and marketable securities held in Trust Account
|
| | | | 355,633,275 | | |
|
Total Assets
|
| | | $ | 356,331,634 | | |
| Liabilities and Stockholders’ Equity | | | | | | | |
| Current Liabilities | | | | | | | |
|
Accounts payable and accrued expenses
|
| | | $ | 130,814 | | |
|
Income taxes payable
|
| | | | 36,021 | | |
|
Total Current Liabilities
|
| | | $ | 166,835 | | |
|
Deferred underwriting fee payable
|
| | | | 15,525,000 | | |
|
Total Liabilities
|
| | | $ | 15,691,835 | | |
| Commitments | | | | | | | |
|
Common stock subject to possible redemption, 32,572,779 shares at redemption value
|
| | | | 335,639,798 | | |
| Stockholders’ Equity: | | | | | | | |
|
Preferred stock, $0.0001 par value; 5,000,000 shares authorized; none issued and outstanding
|
| | | | — | | |
|
Class A common stock, $0.0001 par value; 400,000,000 shares authorized; 1,927,221 issued and outstanding (excluding 32,572,779 shares subject to possible
redemption) |
| | | | 193 | | |
|
Class B common stock, $0.0001 par value; 50,000,000 shares authorized; 8,625,000 shares issued and outstanding
|
| | | | 863 | | |
|
Additional paid-in capital
|
| | | | 1,853,915 | | |
|
Retained earnings
|
| | | | 3,145,030 | | |
|
Total Stockholders’ Equity
|
| | | $ | 5,000,001 | | |
|
Total Liabilities and Stockholders’ Equity
|
| | | $ | 356,331,634 | | |
|
Operating costs
|
| | | $ | 552,724 | | |
|
Loss from operations
|
| | | | (552,724) | | |
| Other income: | | | | | | | |
|
Interest income on marketable securities held in Trust Account
|
| | | | 4,533,775 | | |
|
Income before provision for income taxes
|
| | | | 3,981,051 | | |
|
Provision for income taxes
|
| | | | (836,021) | | |
|
Net income
|
| | | $ | 3,145,030 | | |
|
Weighted average shares outstanding of Class A common stock
|
| | | | 34,500,000 | | |
|
Basic and diluted net income per share, Class A
|
| | | | 0.13 | | |
|
Weighted average shares outstanding of Class B common stock
|
| | | | 8,625,000 | | |
|
Basic and diluted net loss per share, Class B
|
| | | $ | (0.15) | | |
| | |
Class A
Common Stock |
| |
Class B
Common Stock |
| |
Additional
Paid-in Capital |
| |
Retained
Earnings |
| |
Total
Stockholders’ Equity |
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance – January 24, 2018 (inception)
|
| | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Class B common stock issued to Sponsor
|
| | | | — | | | | | | — | | | | | | 8,625,000 | | | | | | 863 | | | | | | 24,137 | | | | | | — | | | | | | 25,000 | | |
Sale of 34,500,000 Units, net of underwriting discounts and offering expenses
|
| | | | 34,500,000 | | | | | | 3,450 | | | | | | — | | | | | | — | | | | | | 325,116,319 | | | | | | — | | | | | | 325,119,769 | | |
Sale of 12,350,000 private
placement warrants |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 12,350,000 | | | | | | — | | | | | | 12,350,000 | | |
Common stock subject to
redemption |
| | | | (32,572,779) | | | | | | (3,257) | | | | | | — | | | | | | — | | | | | | (335,636,541) | | | | | | — | | | | | | (335,639,798) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,145,030 | | | | | | 3,145,030 | | |
Balance – December 31, 2018
|
| | | | 1,927,221 | | | | | $ | 193 | | | | | | 8,625,000 | | | | | $ | 863 | | | | | $ | 1,853,915 | | | | | $ | 3,145,030 | | | | | $ | 5,000,001 | | |
| Cash Flows from Operating Activities: | | | | | | | |
|
Net income
|
| | | $ | 3,145,030 | | |
| Adjustments to reconcile net income to net cash used in operating activities: | | | | | | | |
|
Interest earned on marketable securities held in Trust Account
|
| | | | (4,533,775) | | |
|
Changes in operating assets and liabilities:
|
| | | | | | |
|
Prepaid expenses
|
| | | | (47,730) | | |
|
Accounts payable and accrued expenses
|
| | | | 130,814 | | |
|
Income tax payable
|
| | | | 36,021 | | |
|
Net cash used in operating activities
|
| | | | (1,269,640) | | |
| Cash Flow from Investing Activities: | | | | | | | |
|
Investment of cash in Trust Account
|
| | | | (351,900,000) | | |
|
Cash withdrawn from Trust Account
|
| | | | 800,500 | | |
|
Net cash used in investing activities
|
| | | | (351,099,500) | | |
| Cash Flows from Financing Activities: | | | | | | | |
|
Proceeds from issuance of Class B common stock to Sponsor
|
| | | | 25,000 | | |
|
Proceeds from sale of Units, net of underwriting discounts paid
|
| | | | 341,550,000 | | |
|
Proceeds from sale of private placement warrants
|
| | | | 12,350,000 | | |
|
Proceeds from promissory note – related party
|
| | | | 213,000 | | |
|
Repayment of promissory note – related party
|
| | | | (213,000) | | |
|
Payment of offering costs
|
| | |
|
(905,231)
|
| |
|
Net cash provided by financing activities
|
| | | | 353,019,769 | | |
|
Net Change in Cash
|
| | | | 650,629 | | |
|
Cash – Beginning of the period
|
| | |
|
—
|
| |
|
Cash – End of the period
|
| | | $ | 650,629 | | |
| Supplementary cash flow information: | | | | | | | |
|
Cash paid for income taxes
|
| | | $ | 800,500 | | |
| Supplemental disclosure of non-cash investing and financing activities: | | | | | | | |
|
Initial classification of common stock subject to redemption
|
| | | $ | 332,485,331 | | |
|
Change in value of common stock subject to redemption
|
| | | $ | 3,154,467 | | |
|
Deferred underwriting fee charged to additional paid in capital
|
| | | $ | 15,525,000 | | |
| Federal | | | | | | | |
|
Current
|
| | | $ | 836,021 | | |
|
Deferred
|
| | | | — | | |
| State | | | | | | | |
|
Current
|
| | | | — | | |
|
Deferred
|
| | | | — | | |
|
Change in valuation allowance
|
| | | | — | | |
|
Income tax provision
|
| | | $ | 836,021 | | |
|
Statutory federal income tax rate
|
| | | | (21.0)% | | |
|
State taxes, net of federal tax benefit
|
| | | | 0.0% | | |
|
Income tax provision (benefit)
|
| | | | (21.0)% | | |
Held-To-Maturity
|
| |
Amortized
Cost |
| |
Gross
Holding Gains |
| |
Fair Value
|
| |||||||||
U.S. Treasury Securities (Mature on 2/14/2019)
|
| | | $ | 177,713,107 | | | | | $ | 2,169 | | | | | $ | 177,715,276 | | |
U.S. Treasury Securities (Mature on 3/14/2019)
|
| | | | 177,915,883 | | | | | | 11,908 | | | | | | 177,927,791 | | |
Total
|
| | | $ | 355,628,990 | | | | | $ | 14,077 | | | | | $ | 355,643,067 | | |
| | |
First
Quarter |
| |
Second
Quarter |
| |
Third
Quarter |
| |
Fourth
Quarter |
| ||||||||||||
For the period from January 24, 2018 (inception) through December 31, 2018
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating costs
|
| | | $ | 814 | | | | | $ | 182,192 | | | | | $ | 223,597 | | | | | $ | 146,121 | | |
Interest income
|
| | | | — | | | | | | 775,735 | | | | | | 1,820,909 | | | | | | 1,937,131 | | |
Provision for income taxes
|
| | | | — | | | | | | (152,404) | | | | | | (371,891) | | | | | | (311,726) | | |
Net income (loss)
|
| | | | (814) | | | | | | 441,139 | | | | | | 1,225,421 | | | | | | 1,479,284 | | |
Basic and diluted income per share, Class A common stock
|
| | | | — | | | | | | 0.02 | | | | | | 0.05 | | | | | | 0.05 | | |
Basic and diluted income (loss) per share, Class B
|
| | | $ | (0.00) | | | | | $ | (0.02) | | | | | $ | (0.06) | | | | | $ | (0.02) | | |
| | |
Historical
Broadmark Realty For the six months ended June 30, 2020 |
| |
Pro forma
Adjustments For the six months ended June 30, 2020 |
| | | | | | | |
Pro forma
Combined For the six months ended June 30, 2020 |
| |||||||||
Revenues | | | | | | | | | | | | | | | | | | | | | |||||
Interest income
|
| | | $ | 46,733 | | | | | | — | | | | | | | | | | | $ | 46,733 | | |
Fee income
|
| | | | 14,105 | | | | | | — | | | | | | | | | | | | 14,105 | | |
Total Revenue
|
| | | | 60,838 | | | | | | — | | | | | | | | | | | | 60,838 | | |
Other Income: | | | | | | | | | | | | | | | | | | | | | | | | | |
Change in fair value of optional subscription
liabilities |
| | | | 3,146 | | | | | | (3,146) | | | | |
|
A
|
| | | | | — | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Impairment: | | | | | | | | | | | | | | | | | | | | | | | | | |
Loan loss provision (recovery)
|
| | | | 3,931 | | | | | | — | | | | | | | | | | | | 3,931 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Compensation and employee benefits
|
| | | | 6,237 | | | | | | (1,613) | | | | |
|
B
|
| | | | | 4,624 | | |
General and administrative
|
| | | | 6,778 | | | | | | 1,070 | | | | |
|
C
|
| | | | | 7,848 | | |
Total Expenses
|
| | | | 16,946 | | | | | | (543) | | | | | | | | | | | | 16,403 | | |
Income before income taxes
|
| | | | 47,038 | | | | | | (2,603) | | | | | | | | | | | | 44,435 | | |
Income tax provision
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | |
Net income
|
| | | $ | 47,038 | | | | | | (2,603) | | | | | | | | | | | $ | 44,435 | | |
Earnings per common share:(1) | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | $ | 0.36 | | | | | | | | | | | | | | | | | | 0.34 | | |
Diluted
|
| | | $ | 0.36 | | | | | | | | | | | | | | | | | | 0.34 | | |
Weighted-average shares of common stock outstanding, basic and diluted
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | 132,120,290 | | | | | | | | | | | | | | | | | | 132,120,290 | | |
Diluted
|
| | | | 132,120,290 | | | | | | | | | | | | | | | | | | 132,120,290 | | |
| | |
Historical
Broadmark Realty For the year ended December 31, 2019 |
| |
Pro forma
Adjustments For the year ended December 31, 2019 |
| | | | | | | |
Pro forma
Combined For the year ended December 31, 2019 |
| |||||||||
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income
|
| | | $ | 95,432 | | | | | | — | | | | | | | | | | | | 95,432 | | |
Fee income
|
| | | | 35,552 | | | | | | — | | | | | | | | | | | | 35,552 | | |
Total Revenue
|
| | | | 130,984 | | | | | | | | | | | | | | | | | | 130,984 | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Impairment: | | | | | | | | | | | | | | | | | | | | | | | | | |
Loan loss provision (recovery)
|
| | | | 3,342 | | | | | | — | | | | | | | | | | | | 3,342 | | |
Other Expense: | | | | | | | | | | | | | | | | | | | | | | | | | |
Change in fair value of optional subscription liabilities
|
| | | | 4,924 | | | | | | — | | | | | | | | | | | | 4,924 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Compensation and employee benefits
|
| | | | 8,081 | | | | | | 3,716 | | | | |
|
D
|
| | | | | 11,797 | | |
General and administrative
|
| | | | 13,245 | | | | | | (1,685) | | | | |
|
E
|
| | | | | 11,560 | | |
Transaction costs
|
| | | | 26,156 | | | | | | (26,156) | | | | |
|
F
|
| | | | | — | | |
Total Expenses
|
| | | | 55,748 | | | | | | (24,125) | | | | | | | | | | | | 31,623 | | |
Income before income taxes
|
| | | | 75,236 | | | | | | 24,125 | | | | | | | | | | | | 99,361 | | |
Income tax provision
|
| | | | — | | | | | | | | | | | | | | | | | | | | |
Net income
|
| | | $ | 75,236 | | | | | | 24,125 | | | | | | | | | | | | 99,361 | | |
Earnings per common share:(1) | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | 0.57 | | | | | | | | | | | | | | | | | | 0.75 | | |
Diluted
|
| | | | 0.57 | | | | | | | | | | | | | | | | | | 0.75 | | |
Weighted-average shares of common stock outstanding, basic and diluted
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | 132,111,329 | | | | | | 330,197 | | | | |
|
G
|
| | | | | 132,441,526 | | |
Diluted
|
| | | | 132,499,386 | | | | | | 330,197 | | | | |
|
G
|
| | | | | 132,829,583 | | |
| | |
Historical
Successor Period from November 15, 2019 through December 31, 2019 |
| |
Historical
Predecessor Period from January 1, 2019 through November 14, 2019 |
| |
Historical
Broadmark Realty For the year ended December 31, 2019 |
| |||||||||
Revenues | | | | | | | | | | | | | | | | | | | |
Interest income
|
| | | $ | 13,207 | | | | | $ | 82,225 | | | | | $ | 95,432 | | |
Fee income
|
| | | | 2,767 | | | | | | 32,785 | | | | | | 35,552 | | |
Total Revenue
|
| | | | 15,974 | | | | | | 115,010 | | | | | | 130,984 | | |
Expenses | | | | | | | | | | | | | | | | | | | |
Impairment: | | | | | | | | | | | | | | | | | | | |
Loan loss provision (recovery)
|
| | | | — | | | | | | 3,342 | | | | | | 3,342 | | |
Other Expense: | | | | | | | | | | | | | | | | | | | |
Change in fair value of optional subscription liabilities
|
| | | | 4,924 | | | | | | — | | | | | | 4,924 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | |
Compensation and employee benefits
|
| | | | 2,527 | | | | | | 5,554 | | | | | | 8,081 | | |
General and administrative
|
| | | | 2,843 | | | | | | 10,402 | | | | | | 13,245 | | |
Transaction costs
|
| | | | 367 | | | | | | 25,789 | | | | | | 26,156 | | |
Total Expenses
|
| | | | 10,661 | | | | | | 45,087 | | | | | | 55,748 | | |
Income before income taxes
|
| | | | 5,313 | | | | | | 69,923 | | | | | | 75,236 | | |
Income tax provision
|
| | | | — | | | | | | — | | | | | | — | | |
Net income
|
| | | $ | 5,313 | | | | | $ | 69,923 | | | | | $ | 75,236 | | |
Earnings per common share:(1)
|
| | | | | | | | | | | | | | | | | | |
Basic
|
| | | $ | 0.04 | | | | | | — | | | | | | — | | |
Diluted
|
| | | $ | 0.04 | | | | | | — | | | | | | — | | |
Weighted-average shares of common stock outstanding,
basic and diluted |
| | | | | | | | | | | | | | | | | | |
Basic
|
| | | | 132,111,329 | | | | | | — | | | | | | — | | |
Diluted
|
| | | | 132,499,386 | | | | | | — | | | | | | — | | |