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We may carry our loans at fair value or carrying value in our consolidated balance sheet.
−Removed: 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.
+Added: As of June 30, 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.
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however, this is mitigated to the extent our loans bear interest at a floating rate.
−Removed: 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.
−Removed: As of March 31, 2025, we had eight floating-rate loans, representing approximately 42% of our portfolio based on aggregate outstanding principal balances.
+Added: As of June 30, 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 June 30, 2025, we had eight floating-rate loans, representing approximately 42% of our portfolio based on aggregate outstanding principal balances.
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.
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Credit risk will also be addressed through our Manager’s ongoing review, and loans will be monitored for variance from expected prepayments, defaults, severities, losses and cash flow on a quarterly basis.
−Removed: Other than the acquisition of our initial portfolio of loans and certain loan commitments relating to Private Company A, we, through our Manager, have originated substantially all of our loans and intend to continue to originate our loans, but we have previously and may in the future acquire loans from time to time.
+Added: Other than the acquisition of our initial portfolio of loans and certain loan commitments relating to Private Company A, we, through our Manager, have originated substantially all of our loans and intend to continue to originate our loans, but
+Added: we have previously and may in the future acquire loans from time to time.
Our Investment Guidelines are not subject to any limits or proportions with respect to the mix of target investments that we make or that we may in the future acquire other than as necessary to maintain our exemption from registration under the Investment Company Act and our qualification as a REIT.
1 unchanged sentence
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 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.
+Added: Our loan portfolio as of June 30, 2025 was concentrated with the top three borrowers representing approximately 46.3% of the aggregate outstanding principal balances and approximately 42.3% 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 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.
+Added: Our largest credit facility represented approximately 21.9% of the aggregate outstanding principal balances of our portfolio and approximately 19.8% of our total loan commitments as of June 30, 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 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.
−Removed: 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 .
−Removed: Subsidiary of Private Company G was previously placed on nonaccrual status during various periods in 2023.
−Removed: 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.
+Added: We placed Subsidiary of Private Company G on nonaccrual status effective December 1, 2023 and previously during various periods in 2023.
+Added: As of June 30, 2025, the loan with Subsidiary of Private Company G had an outstanding principal amount of approximately $78.9 million and an amortized cost of approximately $77.4 million, respectively.
+Added: During the three and six months ended June 30, 2025, we recognized interest income of zero and approximately $0.7 million related to this loan, which was received in cash.
+Added: As full recovery of principal and accrued interest is doubtful, future cash receipts received in accordance with terms of the forbearance agreement are accounted for under the cost recovery method.
+Added: During the three and six months ended June 30, 2025, approximately $0.3 million and $0.3 million of contractual interest payments were received and applied as a reduction to this loan’s amortized cost, respectively.
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.
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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.