12 unchanged sentences
We may carry our loans at fair value or carrying value in our consolidated balance sheet.
−Removed: As of September 30, 2024 and December 31, 2023, one and two of our loans held for investment were carried at fair value within loans held at fair value in our consolidated balance sheets, respectively, with changes in fair value recorded through earnings.
+Added: As of March 31, 2025 and December 31, 2024, one loan held for investment was carried at fair value within loans held at fair value in our consolidated balance sheets, respectively, with changes in fair value recorded through earnings.
We evaluate our loans on a quarterly basis and fair value is determined by our Board through its independent Audit and Valuation Committee.
29 unchanged sentences
however, this is mitigated to the extent our loans bear interest at a floating rate.
−Removed: As of September 30, 2024, a decrease of 50 bps or increase of 50 bps of the market yield would have resulted in a change in unrealized gain (loss) of approximately $0.3 million and $(0.3) million, respectively.
−Removed: As of September 30, 2024, we had seven floating-rate loans, representing approximately 38% of our portfolio based on aggregate outstanding principal balances.
−Removed: These floating benchmark rates included one-month SOFR subject to a weighted average floor of 3.6% and quoted at 4.8%.
+Added: As of March 31, 2025, a decrease of 50 bps or increase of 50 bps of the market yield would have resulted in a change in unrealized gain (loss) of approximately $0.3 million and $(0.3) million, respectively.
+Added: As of March 31, 2025, we had eight floating-rate loans, representing approximately 42% of our portfolio based on aggregate outstanding principal balances.
+Added: These floating benchmark rates included one-month SOFR quoted at 4.3% and subject to a weighted average floor of 3.8% based on outstanding principal.
We estimate that a hypothetical 100 basis points increase in the floating benchmark rate would result in an increase in annual interest income of approximately $1.1 million and a hypothetical 100 basis points decrease in the floating benchmark rate would result in a decrease in annual interest income of approximately $(0.4) million.
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As a result, we cannot predict the percentage of our capital that will be invested in any individual target investment at any given time.
−Removed: Our loan portfolio as of September 30, 2024 was concentrated with the top three borrowers representing approximately 56.5% of the aggregate outstanding principal balances and approximately 57.5% of the total loan commitments.
+Added: Our loan portfolio as of March 31, 2025 was concentrated with the top three borrowers representing approximately 46.2% of the aggregate outstanding principal balances and approximately 42.0% of the total loan commitments.
Additionally, the industry is experiencing significant consolidation, which we expect to increase, among cannabis operations and certain of our borrowers may combine, increasing the concentration of our borrower portfolio with those consolidated operators.
−Removed: Our largest credit facility represented approximately 26.5% of the aggregate outstanding principal balances of our portfolio and approximately 21.0% of our total loan commitments as of September 30, 2024.
+Added: Our largest credit facility represented approximately 21.6% of the aggregate outstanding principal balances of our portfolio and approximately 19.6% of our total loan commitments as of March 31, 2025.
The borrower under this credit facility is a Subsidiary of Private Company G, a multi-state operator with real estate assets in several states, certain of which have been included as collateral in connection with the senior term loan.
−Removed: Our portion of the senior term loan provided to such borrower has a principal amount of $79.2 million outstanding as of September 30, 2024, which is fully funded.
+Added: Our portion of the senior term loan provided to such borrower has a principal amount of $79.2 million outstanding as of March 31, 2025, which is fully funded.
This senior term loan accrues interest at a fixed rate of 12.5%, a minimum portion of which is payable in cash pursuant to the excess cash flow sweep, and the remainder of which, if any, is paid in kind.
+Added: We placed Subsidiary of Private Company G on nonaccrual status effective December 1, 2023, with an outstanding principal amount of approximately $79.2 million and an amortized cost of approximately $77.8 million as of March 31, 2025 .
+Added: Subsidiary of Private Company G was previously placed on nonaccrual status during various periods in 2023.
+Added: During the three months ended March 31, 2025, we recognized interest income of approximately $0.7 million related to this loan, which was received in cash.
We primarily provide loans to companies operating in the cannabis industry which involves significant risks, including the risk of strict enforcement against our borrowers of the federal illegality of cannabis, our borrowers’ inability to renew or otherwise maintain their licenses or other requisite authorizations for their cannabis operations, and such loans lack of liquidity, and we could lose all or part of any of our loans.
4 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.