What changed in this filing

/stocks — the workspaceLOADING

Item 9A. Controls and Procedures

2021-03-11 compared with 2020-03-17 · 942 added, 892 removed, 1096 unchanged (63% of the section changed)

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Other Information.

On March 10, 2021, we filed a corrected version of our Articles of Amendment and Restatement (“Articles”) to address a scrivener’s error relating to an incorrect cross-reference.

The Articles are filed as Exhibit 3.1 to this Annual Report on Form 10-K.

Directors, Executive Officers and Corporate Governance.

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A copy of our Code of Ethics may be obtained, free of charge, by sending a written request to our executive office – 9 West 57th Street - Suite 4920, New York, NY 10019, attention Chief Financial Officer of Benefit Street Partners Realty Trust, Inc.

In addition, the Code of Ethics is available on the Company’s website at www.bsprealtytrust.com by clicking on “Investor Relations - Corporate Governance - Code of Ethics.” Any amendments and waivers to our Code of Ethics will be disclosed on our website.

In addition, the Code of Ethics is available on the Company’s website at www.bsprealtytrust.com by clicking on “Investor Relations - Code of Ethics.” Any amendments and waivers to our Code of Ethics will be disclosed on our website.

The information required by this Item is incorporated by reference to our definitive proxy statement to be filed with the SEC with respect to our 2021 annual meeting of stockholders.

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The following exhibits are included in this Annual Report on Form 10-K for the year ended December 31, 2020 (and are numbered in accordance with Item 601 of Regulation S-K).

Articles of Amendment and Restatement, effective August 16, 2017.

3.1* Articles of Amendment and Restatement, effective March 10, 2021.

Articles Supplementary of Benefit Street Partners Realty Trust, Inc., dated June 22, 2018, relating to Series A Convertible Preferred Stock

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Guarantee Agreement, dated as of June 18, 2014, between the Company and JPMorgan Chase Bank, National Association.

Indenture, dated October 19, 2015, by and among RFT 2015-FL1 Issuer Ltd., as issuer, RFT 2015-FL1 Co-Issuer LLC, as issuer, Realty Finance Operating Partnership L.P., as advancing agent, and U.S.

Bank National Association, as trustee, note administrator, paying agent, calculation agent, transfer agent, custodian, securities intermediary, backup advancing agent and notes registrar.

Form of Director and Officer Indemnification Agreement.

Indenture, dated as of June 29, 2017, by and among BSPRT 2017-FL1 Issuer, Ltd., BSPRT 2017-FL1 Co-Issuer, LLC, Benefit Street Partners Realty Operating Partnership, L.P., as advancing agent, and U.S.

Bank National Association, as trustee and note administrator.

Amended and Restated Uncommitted Master Repurchase Agreement, dated as of June 12, 2017, by and between BSPRT JPM Loan, LLC and JP Morgan Chase Bank, National Association.

10.11* Amendment No.

5 to Amended and Restated Uncommitted Master Repurchase Agreement, d ated as of October 6 , 2020, by and between BSPRT JPM Loan, LLC and JP Morgan Chase Bank, National Association.

Amended and Restated Guarantee Agreement, dated as of June 12, 2017, by and between the Company and JPMorgan Chase Bank, National Association.

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and Benefit Street Partners, L.L.C.

Form of Purchase Agreement for common stock.

Indenture, dated as of April 5, 2018, by and among BSPRT 2018-FL3 Issuer, Ltd., BSPRT 2018-FL3 Co-Issuer, LLC, Benefit Street Partners Realty Operating Partnership, L.P., as advancing agent, and U.S.

Bank National Association, as trustee, note administrator and custodian.

Form of Purchase Agreement for Series A convertible preferred stock, dated June 1, 2018.

Indenture, dated as of October 12, 2018, by and among BSPRT 2018-FL4 Issuer, Ltd., BSPRT 2018-FL4 Co-Issuer, LLC, Benefit Street Partners Realty Operating Partnership, L.P., as advancing agent, and U.S.

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Bank National Association, as trustee, note administrator and custodian.

Loan and Security Agreement, dated February 11, 2020 and as amended by Agreement of Amendment dated March 26, 2020, among BSPRT OP SUB I, LLC, Benefit Street Partners Realty Trust, Inc., Benefit Street Partners Realty Trust LP, LLC, Benefit Street Partners Realty Operating Partnership, L.P., and Security Benefit Life Insurance Company and the other lenders from time to time parties thereto, and Cortland Capital Market Services LLC, as administrative agent.

Loan and Security Agreement, dated as of February 11, 2020, as amended by that certain Agreement of Amendment No.

1, dated March 26, 2020 and that certain Consent and Amendment No.

2 to Loan and Security Agreement, dated as of July 14, 2020, among BSPRT OP Sub I, LLC, Benefit Street Partners Realty Trust, Inc., Benefit Street Partners Realty Trust LP, LLC, and Benefit Street Partners Realty Operating Partnership, L.P.

and Security Benefit Life Insurance Company and the other lenders from time to time parties thereto, and Cortland Capital Market Services LLC, as administrative agent.

21* Subsidiaries of the Registrant

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† Indicates management contract or compensatory plan or arrangement.

(1) Filed as an exhibit to our current report on Form 8-K filed with the SEC on August 17, 2017.

(1) Filed as an exhibit to our current report on Form 8-K filed with the SEC on June 26, 2018.

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(5) Filed as an exhibit to our quarterly report on Form 10-Q for the quarter ended September 30, 2018 filed with the SEC on November 9, 2018.

(6) Filed as an exhibit to our annual report on Form 10-K for the year ended December 31, 2019 filed with the SEC on March 17, 2020.

(7) Filed as an exhibit to our current report on Form 8-K filed with the SEC on January 6, 2015.

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8 to our Registration Statement on Form S-11 filed with the SEC on October 8, 2014.

(15) Filed as an exhibit to our current report on Form 8-K filed with the SEC on October 23, 2015.

(15) Filed as an exhibit to our quarterly report on Form 10-Q for the quarter ended September 30, 2016 filed with the SEC on November 14, 2016.

(17) Filed as an exhibit to our current report on Form 8-K filed with the SEC on July 6, 2017.

(16) Filed as an exhibit to Amendment No.

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(20) Filed as an exhibit to our current report on Form 8-K filed with the SEC on January 23, 2018.

(23) Filed as an exhibit to our current report on Form 8-K filed with the SEC on February 16, 2018.

(21) Filed as an exhibit to our current report on Form 8-K filed with the SEC on April 11, 2018.

(25) Filed as an exhibit to our current report on Form 8-K filed with the SEC on June 6, 2018.

(22) Filed as an exhibit to our annual report on Form 10-K filed with the SEC on March 29, 2019.

(27) Filed as exhibit 10.1 to our Current Report on Form 8-K filed with the SEC on June 5, 2019.

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized this 16th day of March, 2020 .

(23) Filed as an exhibit 10.1 to our current report on Form 8-K filed with the SEC on June 5, 2019.

(24) Filed as exhibit 10.1 to our quarterly report on Form 10-Q for the quarter ended March 31, 2020 filed with the SEC on May 15, 2020.

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Benefit Street Partners Realty Trust, Inc.

/s/ Richard J.

March 10, 2021 By /s/ Richard J.

Chief Executive Officer and President

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this annual report on Form 10-K has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Name Capacity Date

/s/ Richard J.

Chief Executive Officer and President

March 16, 2020

(Principal Executive Officer)

Byrne Chief Executive Officer and President March 10, 2021

Byrne (Principal Executive Officer)

/s/ Jerome S.

Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer)

March 16, 2020

Baglien Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer) March 10, 2021

/s/ Elizabeth K.

Lead Independent Director

March 16, 2020

/s/ Buford Ortale

March 16, 2020

Tuppeny Lead Independent Director March 10, 2021

/s/ Buford Ortale Director March 10, 2021

Buford Ortale

/s/ Jamie Handwerker

March 16, 2020

/s/ Jamie Handwerker Director March 10, 2021

Jamie Handwerker

/s/ Peter McDonough

March 16, 2020

/s/ Peter McDonough Director March 10, 2021

Peter McDonough

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generally accepted accounting principles.

Adoption of new accounting standard

As discussed in Note 2 to the consolidated financial statements, the Company changed its method of accounting for credit losses in 2020.

As explained below, auditing Benefit Street Partners Realty Trust Inc.’s allowance for credit losses – Commercial mortgage loans held-for-investment, including the adoption of the new accounting guidance, was a critical audit matter.

Basis for Opinion

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We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that:

(1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments.

The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the account or disclosures to which it relates.

Allowance for credit losses – Commercial mortgage loans held-for-investment

Description of the Matter Allowance for credit losses – Commercial mortgage loans held-for-investment totaled $20.9 million as of December 31, 2020.

As disclosed in Note 2 to the consolidated financial statements, the allowance for credit losses for the Commercial mortgage loans held-for-investment carried at amortized cost, represents a lifetime estimate of expected credit losses.

As discussed above and in Note 2 to the financial statements, effective January 1, 2020 the Company adopted new accounting guidance related to the estimate of allowance for credit losses.

The allowance for credit losses is established for current expected credit losses on the Company’s loan portfolio by utilizing expected loss models.

When determining expected losses, the Company uses an economic scenario over a reasonable and supportable forecast period and then fully reverts to historical loss experience to estimate losses over the remaining asset lives.

The Company performs a comprehensive analysis of its loan portfolio and assigns risk ratings to loans that incorporate management's current judgments about their credit quality based on all known and relevant internal and external factors that may affect collectability.

Auditing the Allowance for credit losses – Commercial mortgage loans held-for-investment was complex due to the use of intricate expected loss models and the highly judgmental nature of the economic scenario and the key inputs of the models.

How We Addressed the Matter in Our Audit With the support of specialists, we assessed the economic scenario by, among other procedures, evaluating management’s methodology and agreeing a sample of key economic variables used to external sources.

We also performed and considered the results of various sensitivity analyses and analytical procedures, including comparison of a sample of the key economic variables to alternative external sources, historical statistics and peer real estate investment trust information.

With respect to expected loss models, with the support of specialists, we evaluated model calculation design and re-performed the calculation for the models.

We also tested the appropriateness of a sample of key inputs and assumptions used in these models by agreeing significant inputs and underlying data to internal and external sources, as well as recalculating when required.

We evaluated the overall allowance amount, including model estimates and whether the recorded allowance for credit losses appropriately reflects expected credit losses on the loan portfolio.

We reviewed historical loss statistics, peer real estate investment trust information, subsequent events and transactions and considered whether they corroborate or contradict the Company’s measurement of the allowance for credit losses.

/s/ Ernst & Young LLP

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New York, New York

March XX, 2020

March 10, 2021

BENEFIT STREET PARTNERS REALTY TRUST, INC.

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(In thousands, except share and per share data)

December 31, 2019

December 31, 2018

December 31, 2020 December 31, 2019

Cash and cash equivalents $ 82,071 $ 87,246

Restricted cash 10,070 21,876

Commercial mortgage loans, held for investment, net of allowance of $921 and $4,836

Commercial mortgage loans, held for investment, net of allowance of $ 20,886 and $ 921 as of December 31, 2020 and December 31, 2019, respectively

2,693,848 2,762,042

Commercial mortgage loans, held-for-sale, measured at fair value 67,649 112,562

Real estate securities, available for sale, measured at fair value

Derivative instruments, at fair value

Real estate securities, available for sale, measured at fair value, amortized cost of $ 179,392 and $ 387,294 as of December 31, 2020 and December 31, 2019, respectively

171,136 386,316

Derivative instruments, measured at fair value 25 1,119

Other real estate investments, measured at fair value 2,522 2,557

Receivable for loan repayment (1)

98,551 89,317

Accrued interest receivable 15,295 16,308

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Receivable for unsettled trades — 266

Total assets $ 3,189,761 $ 3,540,620

LIABILITIES AND STOCKHOLDERS' EQUITY

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Other financing and loan participation - commercial mortgage loans 31,379 —

Derivative instruments, at fair value

Derivative instruments, measured at fair value 403 1,581

Interest payable 2,110 4,958

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Total liabilities $ 2,182,063 $ 2,514,705

Commitment and contingencies (See Note 10)

Redeemable convertible preferred stock Series A, $0.01 par value, 60,000 authorized, 40,500 and 29,249 shares issued and outstanding as of December 31, 2019 and December 31, 2018, respectively

Redeemable convertible preferred stock Series C, $0.01 par value, 20,000 authorized, 1,400 shares issued and outstanding as of December 31, 2019 and none issued or outstanding as of December 31, 2018

Preferred stock, $0.01 par value, 50,000,000 authorized, none issued and outstanding as of December 31, 2019 and December 31, 2018

Common stock, $0.01 par value, 949,999,000 shares authorized, 43,916,815 and 39,303,710 shares issued and outstanding as of December 31, 2019 and December 31, 2018, respectively

Redeemable convertible preferred stock Series A, $ 0.01 par value, 60,000 authorized and 40,515 and 40,500 issued and outstanding as of December 31, 2020 and December 31, 2019, respectively

$ 202,292 $ 202,144

Redeemable convertible preferred stock Series C, $ 0.01 par value, 20,000 authorized and 1,400 issued and outstanding as of December 31, 2020 and December 31, 2019, respectively

Preferred stock, $ 0.01 par value, 50,000,000 authorized, none issued and outstanding as of December 31, 2020 and December 31, 2019, respectively

Common stock, $ 0.01 par value, 949,999,000 shares authorized, 44,510,051 and 43,916,815 issued and outstanding as of December 31, 2020 and December 31, 2019, respectively

Additional paid-in capital 912,725 903,310

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Year Ended December 31,

2020 2019 2018

Interest Income:

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Revenue from real estate owned 4,299 3,169 —

Total Income $ 117,615 $ 108,050 $ 82,288

Asset management and subordinated performance fee 15,178 16,226 10,299

Acquisition fees and acquisition expenses

Acquisition expenses 696 900 452

Administrative services expenses 13,120 16,363 13,446

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Other (income)/loss:

Loan loss provision/(recovery)

Provision/(benefit) for credit losses 13,296 3,007 3,370

Impairment losses on real estate owned assets 398 — —

Realized (gain)/loss on extinguishment of debt ( 3,678 ) — —

Realized (gain)/loss on sale of real estate securities 10,137 — 107

Realized (gain)/loss on sale of commercial mortgage loan, held-for-sale ( 184 ) 25 9

Realized (gain)/loss on sale of real estate owned assets, held-for-sale ( 1,851 ) — —

Realized (gain)/loss on sale of commercial mortgage loan, held-for-sale, measured at fair value ( 15,931 ) ( 37,832 ) ( 11,288 )

Unrealized (gain)/loss on commercial mortgage loans held-for-sale

Unrealized (gain)/loss on commercial mortgage loans, held-for-sale, measured at fair value 75 ( 312 ) 237

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Total other (income)/loss $ 15,775 $ ( 32,557 ) $ ( 8,018 )

Income/(loss) before taxes

Income before taxes 52,684 88,407 52,904

Provision/(benefit) for income tax ( 2,062 ) 4,483 $ 79

Net income $ 54,746 $ 83,924 $ 52,825

Net income applicable to common stock $ 39,826 $ 66,914 $ 49,181

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Year Ended December 31,

2020 2019 2018

Net income $ 54,746 $ 83,924 $ 52,825

Unrealized gain/(loss) on available for sale securities ( 7,278 ) ( 978 ) ( 459 )

Comprehensive income attributable to Benefit Street Partners Realty Trust, Inc.

$ 47,468 $ 82,946 $ 52,366

The accompanying notes are an integral part of these consolidated financial statements.

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(In thousands, except share data)

Number of Shares

Additional Paid-In Capital

Accumulated Other Comprehensive Loss

Accumulated Deficit

Total Stockholders' Equity

Number of Shares Par Value Additional Paid-In Capital Accumulated Other Comprehensive Loss Accumulated Deficit Total Stockholders' Equity

Balance, December 31, 2017 31,834,072 $ 320 $ 704,101 $ — $ ( 94,082 ) $ 610,339

Issuance of common stock 7,533,834 75 124,260 — — 124,335

Common stock repurchases ( 809,023 ) ( 8 ) ( 15,077 ) — — ( 15,085 )

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Share-based compensation 5,775 — 157 — — 157

Offering costs — — 102 — — 102

Net income — — — — 52,825 52,825

Distributions declared — — — — ( 53,009 ) ( 53,009 )

Other comprehensive loss

Other comprehensive income — — — ( 459 ) — ( 459 )

Balance, December 31, 2018 39,303,710 $ 395 $ 827,558 $ ( 459 ) $ ( 94,266 ) $ 733,228

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Offering costs — — ( 1,347 ) — — ( 1,347 )

Net income — — — — 83,924 83,924

Distributions declared — — — — ( 75,626 ) ( 75,626 )

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Share-based compensation 10,770 — 193 — — 193

Offering Cost

Offering costs — — ( 214 ) — — ( 214 )

Net income — — — — 54,746 54,746

Distributions declared — — — — ( 67,488 ) ( 67,488 )

Cumulative-effect adjustment upon adoption of ASU 2016-13 (Note 2) — — — — ( 7,761 ) ( 7,761 )

Other comprehensive income — — — ( 7,278 ) — ( 7,278 )

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BENEFIT STREET PARTNERS REALTY TRUST, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (OPEN)

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

For the Years Ended December 31,

2020 2019 2018

Cash flows from operating activities:

Net income $ 54,746 $ 83,924 $ 52,825

Adjustments to reconcile net income to net cash provided by operating activities:

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Share-based compensation 193 156 157

Realized (gain)/loss from sale of real estate securities 10,137 — 107

Realized (gain)/loss from sale of real estate owned, held-for-sale ( 1,851 ) — —

Realized (gain)/loss from extinguishment of debt ( 3,678 ) — —

Unrealized (gain)/loss on commercial mortgage loans held-for-sale 75 ( 359 ) 237

Unrealized (gain)/losses on derivative instruments 995 ( 1,722 ) 1,374

Loan loss (recovery)/provision

Realized (gain)/loss on sale of real estate securities

Impairment losses on real estate securities

Unrealized loss on other real estate securities 32 — —

Depreciation and amortization 2,233 — —

Recognition of deferred rent revenue ( 150 ) — —

Increase/(decrease) for credit losses 13,296 3,007 3,370

Impairment losses on real estate owned assets 398 — —

Origination of commercial mortgage loans, held-for-sale ( 267,553 ) ( 1,020,702 ) ( 621,597 )

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Origination and purchase of commercial mortgage loans, held for investment $ ( 1,281,158 ) $ ( 1,321,644 ) $ ( 1,598,786 )

Purchase of real estate owned

Proceeds from sale of commercial mortgage loans, held for sale

Principal repayments received on commercial mortgage loans, held for investment 1,228,225 756,141 753,921

Purchase of real estate securities

Purchase of other real estate investments — ( 2,511 ) —

Proceeds from sale of real estate securities

Principal repayments received on real estate securities

Purchase of real estate owned and capital expenditures ( 2,824 ) ( 42,018 ) —

Proceeds from sale of real estate owned, held-for-sale 22,472 — —

Proceeds from sale of commercial mortgage loans, held-for-sale 77,164 — 16,910

Purchase of real estate securities ( 148,580 ) ( 369,911 ) ( 39,510 )

Proceeds from sale/repayment of real estate securities 346,201 9,369 12,456

Purchase of derivative instruments ( 813 ) 1,333 ( 804 )

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Reimbursements/(payments) of offering costs and fees related to stock issuances — — ( 887 )

BENEFIT STREET PARTNERS REALTY TRUST, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

Borrowings under collateralized loan obligation — 639,899 1,161,002

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Borrowings on repurchase agreements - real estate securities 2,675,218 1,570,331 280,837

BENEFIT STREET PARTNERS REALTY TRUST, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (OPEN)

(In thousands)

Repayments of repurchase agreements - real estate securities ( 2,882,749 ) ( 1,220,511 ) ( 275,332 )

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Net cash (used in)/provided by financing activities:

$ ( 373,002 ) $ 828,575 $ 961,426

Net change in cash, cash equivalents and restricted cash $ ( 16,981 ) $ ( 95,297 ) $ 112,711

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Supplemental disclosures of cash flow information:

Taxes paid $ 4,400 $ — $ 355

Interest paid 59,819 78,901 53,029

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Common stock issued through distribution reinvestment plan $ 8,814 13,903 14,023

Loans transferred to commercial real estate loans, held-for-sale, transferred at fair value

Commercial mortgage loans transferred from held for investment to held-for-sale 76,979 — 16,750

Distribution payable 15,688 6,912 5,834

Commercial mortgage loans transferred from HFS to HFI

Commercial mortgage loans transferred from held-for-sale to held for investment — 10,072 —

Real estate owned received in foreclosure 35,411 8,110 —

Reconciliation of cash, cash equivalents and restricted cash at end of period:

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Benefit Street Partners L.L.C.

serves as the Company's advisor (the "Advisor")

pursuant to an Amended and Restated Advisory Agreement, dated January 19, 2018 (the "Advisory Agreement").

is a wholly owned subsidiary of Franklin Resources, Inc.

which, together with its various subsidiaries, operates as Franklin

Prior to February 1, 2019, the Advisor was in partnership with Providence Equity Partners L.L.C., a global private

serves as the Company's advisor (the "Advisor") pursuant to an Amended and Restated Advisory Agreement, dated January 19, 2018 (the "Advisory Agreement").

The Advisor is a wholly owned subsidiary of Franklin Resources, Inc.

which, together with its various subsidiaries, operates as Franklin Templeton.

The Advisor, an investment adviser registered with the U.S.

Securities and Exchange Commission (“SEC”), is a

credit-focused alternative asset management firm.

Established in 2008, the Advisor's credit platform manages funds for

institutions and high-net-worth investors across various credit funds and complementary strategies including high yield, levered

loans, private / opportunistic debt, liquid credit, structured credit and commercial real estate debt.

These strategies complement

each other as they all leverage the sourcing, analytical, compliance, and operational capabilities that encompass the platform.

Securities and Exchange Commission (“SEC”), is a credit-focused alternative asset management firm.

Established in 2008, the Advisor's credit platform manages funds for institutions and high-net-worth investors across various credit funds and complementary strategies including high yield, levered loans, private / opportunistic debt, liquid credit, structured credit and commercial real estate debt.

These strategies complement each other as they all leverage the sourcing, analytical, compliance, and operational capabilities that encompass the platform.

The Advisor manages the Company's affairs on a day-to-day basis.

The Advisor receives compensation and fees for services

related to the investment and management of the Company's assets and the operations of the Company.

The Advisor receives compensation and fees for services related to the investment and management of the Company's assets and the operations of the Company.

The Company invests in commercial real estate debt investments, which may include first mortgage loans, subordinated mortgage loans, mezzanine loans and participations in such loans.

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Real estate securities may include CMBS, senior unsecured debt of publicly traded REITs, debt or equity securities of other publicly traded real estate companies and collateralized debt obligations ("CDOs").

The Company also owns real estate acquired by the Company through foreclosure and deed in lieu of foreclosure, and purchased for investment, typically subject to triple net leases.

Note 2 - Summary of Significant Accounting Policies

Basis of Accounting

The accompanying consolidated financial statements and related footnotes have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America ("GAAP") and pursuant to the requirements for reporting on Form 10-K and Regulation S-X, as appropriate.

GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reported periods.

Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ materially.

In the opinion of management, the annual data includes all adjustments, of a normal and recurring nature, necessary for a fair statement of the results for the periods presented.

The Company's consolidated financial statements and related footnotes have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America ("GAAP") and pursuant to the requirements for reporting on Form 10-K and Regulation S-X, as appropriate.

Certain prior period amounts have been reclassified to conform with current presentation.

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The current period’s results of operations will not necessarily be indicative of results in any subsequent reporting period.

Use of Estimates

Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ materially.

In the opinion of management, the interim data includes all adjustments, of a normal and recurring nature, necessary for a fair statement of the results for the periods presented.

The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the entire year or any subsequent periods.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020

In response to the global coronavirus (COVID-19) pandemic, numerous countries, including the U.S., have declared national emergencies with respect to COVID-19 and certain jurisdictions, including those where our corporate headquarters and/or properties that secure our investments, or properties that the Company owns, are located, have at times imposed “stay-at-home” guidelines or orders or other restrictions to help prevent its spread.

The effects of COVID-19 may negatively and materially impact significant estimates and assumptions used by the Company including, but not limited to estimates of expected credit losses, valuation of our equity method investments and the fair value estimates of the Company’s assets and liabilities.

Actual results could materially differ from those estimates.

Principles of Consolidation

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In determining whether the Company has a controlling financial interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the other partners or members, as well as whether the entity is a variable interest entity ("VIE") for which the Company is the primary beneficiary.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2019

The Company has determined the OP is a VIE of which the Company is the primary beneficiary.

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The Company has determined the CLOs are VIEs of which the Company's subsidiary is the primary beneficiary.

The assets and liabilities of the CLOs are consolidated in the accompanying consolidated balance sheet in accordance with ASC 810, Consolidation .

Acquisition Fees and Acquisition Expenses

The Company has historically incurred acquisition fees and acquisition expenses payable to the Advisor.

The Company’s obligation to pay the Advisor acquisition fees terminated in September 2017.

Prior to then, the Company paid the Advisor an acquisition fee based on the principal amount funded by the Company to originate or acquire commercial mortgage loan investments or on the anticipated net equity funded by the Company to acquire real estate securities.

Acquisition fees and acquisition expenses paid to the Company's Advisor in connection with the origination and acquisition of commercial mortgage loan investments and acquisition of real estate securities were evaluated based on the nature of the expense to determine if they should be expensed in the period incurred or capitalized and amortized over the life of the investment.

The Company capitalizes certain direct costs relating to the loan origination activities and the cost is amortized over the life of the loan.

Pursuant to the Advisory Agreement, the Advisor is entitled to an acquisition fee of 1.0% of the principal amount funded by the Company to originate or acquire commercial mortgage loans (or anticipated net equity funded by the Company in the case of acquisition of real estate securities) until the aggregate purchase price for all investments acquired reaches $600,000,000 and reimbursement for insourced acquisition expenses of 0.5% .

In September 2017, the Company's aggregate purchase price for all investments acquired reached $600,000,000 , which concurrently terminated the 1.0% acquisition fee payments to the Advisor for all investments subsequent to the limit being reached.

The assets and liabilities of the CLOs are consolidated in the accompanying consolidated balance sheets in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, Consolidation.

Acquisition Expenses

The Company capitalizes certain direct costs relating to loan origination activities.

The cost is amortized over the life of the loan and recognized in interest income in the Company's consolidated statements of operations.

Acquisition expenses paid on future funding amounts are expensed within the acquisition expenses line in the Company's consolidated statements of operations.

Cash and Cash Equivalents

Cash consists of amounts deposited with high quality financial institutions.

These deposits are guaranteed by the Federal

Deposit Insurance Company up to an insurance limit.

Cash equivalents include short-term, liquid investments in money market

funds with original maturities of 90 days or less when purchased.

Cash equivalents includes a $10.3 million certificate of deposit.

These deposits are guaranteed by the Federal Deposit Insurance Company up to an insurance limit.

Cash equivalents include short-term, liquid investments in money market funds with original maturities of 90 days or less when purchased.

Restricted Cash

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Held for Investment - Commercial mortgage loans that are held for investment purposes and are anticipated to be held until maturity, are carried at cost, net of unamortized acquisition expenses, discounts or premiums and unfunded commitments.

Commercial mortgage loans, held for investment purposes, that are deemed to be impaired are carried at amortized cost less a specific allowance for loan losses.

Commercial mortgage loans, held for investment purposes, are carried at amortized cost less a specific allowance for credit losses.

Interest income is recorded on the accrual basis and related discounts, premiums and acquisition expenses on investments are amortized over the life of the investment using the effective interest method.

Amortization is reflected as an adjustment to interest income in the Company’s consolidated statements of operations.

Guaranteed loan exit fees payable by the borrower upon maturity are accreted over the life of the investment using the effective interest method.

The accretion of guaranteed loan exit fees is recognized in interest income in the Company's consolidated statements of operations.

Held-for-Sale - Commercial mortgage loans that are intended to be sold in the foreseeable future are reported as held-for sale and are transferred at fair value and recorded at the lower of cost or fair value with changes recorded through the

statements of operations.

Unamortized loan origination costs for commercial mortgage loans held-for-sale that are carried at the

lower of cost or fair value are capitalized as part of the carrying value of the loans and recognized upon the sale of such loans.

Amortization of origination costs ceases upon transfer of commercial mortgage loans to held-for-sale.

For the year ended December 31, 2019 , the Company originated $5.0 million of commercial mortgage loans held-for-sale and sold these

loans during the period for net proceeds of approximately $5.0 million .

Guaranteed loan commitment fees payable by the borrower upon maturity are accreted over the life of the investment using the effective interest method.

The accretion of guaranteed loan commitment fees is recognized in interest income in the Company's consolidated statements of operations.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

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December 31, 2020

Unamortized loan origination costs for commercial mortgage loans held-for-sale that are carried at the lower of cost or fair value are capitalized as part of the carrying value of the loans and recognized upon the sale of such loans.

Amortization of origination costs ceases upon transfer of commercial mortgage loans to held-for-sale.

Held-for-Sale, Accounted for Under the Fair Value Option - The fair value option provides an option to elect fair value as an alternative measurement for selected financial assets, financial liabilities, and written loan commitments.

The Company has elected to measure commercial mortgage loans held-for-sale in the Company's TRS under the fair value option.

These commercial mortgage loans are included in the Commercial mortgage loans, held-for-sale, measured at fair value in the consolidated balance sheet.

Interest income received on commercial mortgage loans held-for-sale is recorded on the accrual basis of accounting and is included in interest income in the consolidated statements of operations.

These commercial mortgage loans are included in the Commercial mortgage loans, held-for-sale, measured at fair value in the consolidated balance sheets.

Interest income received on commercial mortgage loans held-for-sale, measured at fair value is recorded on the accrual basis of accounting and is included in interest income in the consolidated statements of operations.

Costs to originate these investments are expensed when incurred.

Real estate owned

Real estate owned (“REO”) represents real estate acquired by the Company through foreclosure, deed in lieu of foreclosure, or purchase.

For real estate acquired by the Company through foreclosure, REO assets are recorded at fair value at acquisition and are presented net of accumulated depreciation.

For REO assets acquired through purchase, REO assets are recorded at cost at acquisition and are presented net of accumulated depreciation.

Real estate assets are depreciated using the straight-line method over estimated useful lives of up to 40 years for buildings

and improvements and up to 15 years for furniture, fixtures and equipment.

Renovations and/or replacements that improve or

extend the life of the real estate asset are capitalized and depreciated over their estimated useful lives.

Real estate owned (“REO”) assets represent real estate acquired by the Company through foreclosure, deed in lieu of foreclosure, or purchase.

REO assets are carried at their estimated fair value at acquisition and are presented net of accumulated depreciation and impairment charges.

The Company allocates the purchase price of acquired real estate assets based on the fair value of the acquired assets such as land, building, furniture, fixtures and equipment.

Asset acquisitions in which monetary consideration is given generally includes the transaction costs of the asset acquisition.

Acquiring assets in groups requires not only ascertaining the cost of the asset (or net asset) group but also allocating that cost to the individual assets (or individual assets and liabilities) that make up the group.

The cost of a group of assets acquired in an asset acquisition shall be allocated to the individual assets acquired or liabilities assumed based on their relative fair values and shall not give rise to goodwill.

Real estate owned assets are depreciated using the straight-line method over estimated useful lives of up to 40 years for buildings and improvements and up to 15 years for furniture, fixtures and equipment.

Renovations and/or replacements that improve or extend the life of the real estate owned assets are capitalized and depreciated over their estimated useful lives.

Real estate owned revenue is recognized when the Company satisfies a performance obligation by transferring a promised good or service to a customer.

The Company is considered to have satisfied all performance obligations at a point in time.

Real estate owned assets that are probable to be sold within one year are reported as held-for-sale.

Real estate owned assets classified as held-for-sale shall be measured at the lower of its carrying amount or fair value less cost to sell.

Real estate owned assets shall not be depreciated or amortized while it is classified as held-for-sale.

Interest and other expenses attributable to the liabilities of a disposal group classified as held-for-sale shall continue to be accrued.

Upon the disposition of a real estate owned asset, the Company calculates realized gains and losses as net proceeds received less the carrying value of the real estate owned asset.

Net proceeds received are net of direct selling costs associated with the disposition of the real estate owned asset.

Operating right of use assets "ROU" represent the Company’s right to use an underlying asset during the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease.

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The Company's incremental borrowing rate considers information at both the corporate and property level and analysis of current market conditions for obtaining new financings.

All leases as of December 31, 2019 were operating leases.

All leases as of December 31, 2020 and December 31, 2019 were operating leases.

Separately, on October 15, 2019, the Company acquired certain real estate assets which had an existing in-place lease asset.

This in-place lease asset is recorded as an Intangible lease asset on the consolidated balance sheet and amortized using the straight-line method over the contractual life of the lease.

Allowance for Loan Losses

The allowance for loan losses reflects management's estimate of loan losses inherent in the loan portfolio as of the balance sheet date.

The reserve is increased or decreased through the loan loss provision or (recovery) on the Company's consolidated statements of operations and is decreased by charge-offs when losses are confirmed through the receipt of assets, such as cash in a pre-foreclosure sale or upon ownership control of the underlying collateral in full satisfaction of the loan upon foreclosure or when significant collection efforts have ceased.

The Company uses a uniform process for determining its allowance for loan losses.

The allowance for loan losses includes a general, formula-based component and an asset-specific component.

General reserves are recorded when (i) available information as of each balance sheet date indicates that it is probable a loss has occurred in the portfolio and (ii) the amount of the loss can be reasonably estimated.

The Company estimates loss rates based on historical realized losses experienced in the industry, given the fact the Company has not experienced significant losses, and takes into account current collateral and economic conditions affecting the probability and severity of losses when establishing the allowance for loan losses.

The Company considers, among other things, payment status, lien position, borrower financial resources and investment in collateral, collateral type, project economics and geographic location as well as national and regional economic factors.

This in-place lease asset is recorded as an Intangible lease asset on the consolidated balance sheets and amortized using the straight-line method over the contractual life of the lease.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020

Credit Losses

In June 2016, the FASB issued Accounting Standards Update ("ASU") No.

2016-13, Financial Instruments-Credit Losses, which amends the credit impairment model for financial instruments.

The Company adopted ASU 2016-13 on January 1, 2020.

Following our adoption of ASU 2016-13, our previous incurred loss model was replaced with a lifetime current expected credit loss (“CECL”) model for financial instruments carried at amortized cost and off-balance sheet credit exposures, such as loans, loan commitments, held-to-maturity (“HTM”) debt securities, financial guarantees, net investments in leases, reinsurance and trade receivables, which will generally result in earlier recognition of allowance for losses.

For available for sale (“AFS”) debt securities, unrealized credit losses are recognized as allowances rather than reductions in amortized cost basis and elimination of the other than temporary impairment concept will result in more frequent estimation of credit losses.

The accounting model for purchased credit impaired loans and debt securities has been simplified, including elimination of some of the asymmetrical treatment between credit losses and credit recoveries, to be consistent with the CECL model for originated and purchased non-credit impaired assets.

The adopted model for ASC 326 as it applies to HTM and AFS securities, encompassing the beneficial interest model for securities that are not of high credit quality, has been clarified to include the effective interest method as a basis for the projection of cash collections method in connection with the newly adopted impairment models for HTM and AFS debt securities under ASC 326 when securities are not of high credit quality.

Upon adoption of ASU 2016-13 on January 1, 2020, the Company recorded an additional allowance for credit losses for our outstanding loans and unfunded loan commitments of $ 7.8 million, or $ 0.18 per share, which was 0.27 % of the aggregate commitment amount of the Company’s loan portfolio at December 31, 2019.

Pre-adoption Transition Adjustment Post-adjustment

Commercial mortgage loans, held for investment, net of allowance $ 2,762,042 $ ( 7,211 ) $ 2,754,831

Accounts payable and accrued expenses (1)

10,925 ( 550 ) 10,375

Accumulated deficit $ ( 85,968 ) $ ( 7,761 ) $ ( 93,729 )

_______________________

(1) Includes allowance associated with unfunded loan commitment.

The following discussion highlights changes to the Company’s accounting policies as a result of this adoption.

Allowance for credit losses

The allowance for credit losses for the Company’s financial instruments carried at amortized cost and off-balance sheet credit exposures, such as loans held for investment and unfunded loan commitments represents a lifetime estimate of expected credit losses.

Factors considered by the Company when determining the allowance for credit losses reserve include loan-specific characteristics such as loan-to-value (“LTV”) ratio, vintage year, loan term, property type, occupancy and geographic location, financial performance of the borrower, expected payments of principal and interest, as well as internal or external information relating to past events, current conditions and reasonable and supportable forecasts.

The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist for multiple financial instruments.

If similar risk characteristics do not exist, the Company measures the allowance for credit losses on an individual instrument basis.

The determination of whether a particular financial instrument should be included in a pool can change over time.

If a financial asset’s risk characteristics change, the Company evaluates whether it is appropriate to continue to keep the financial instrument in its existing pool or evaluate it individually.

In measuring the allowance for credit losses for financial instruments including our unfunded loan commitments that share similar risk characteristics, the Company primarily applies a probability of default (“PD”)/loss given default (“LGD”) model for instruments that are collectively assessed, whereby the allowance for credit losses is calculated as the product of PD, LGD and exposure at default (“EAD”).

The Company’s model principally utilizes historical loss rates derived from a commercial mortgage backed securities database with historical losses from 1998 to 2020 provided by a reputable third party, forecasting the loss parameters using a scenario-based statistical approach over a reasonable and supportable forecast period of twelve months, followed by an immediate reversion to average historical losses.

For financial instruments assessed on an individual basis, including when it is probable that the Company will be unable to collect the full payment of principal and interest on the instrument, the Company applies a discounted cash flow (“DCF”) methodology.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020

For financial instruments where the borrower is experiencing financial difficulty based on the Company’s assessment at the reporting date and the repayment is expected to be provided substantially through the operation or sale of the collateral, the Company may elect to use as a practical expedient the fair value of the collateral at the reporting date when determining the allowance for credit losses.

In developing the allowance for credit losses for its loans held for investment, the Company performs a comprehensive analysis of its loan portfolio and assigns risk ratings to loans that incorporate management's current judgments about their credit quality based on all known and relevant internal and external factors that may affect collectability, using similar factors as those in developing the allowance for credit losses.

This methodology results in loans being segmented by risk classification into risk rating categories that are associated with estimated probabilities of default and principal loss.

Ratings range from "1" to "5" with "1" representing the lowest risk of loss and "5" representing the highest risk of loss.

The asset-specific reserve component relates to reserves for losses on individual impaired loans.

The Company considers a loan to be impaired when, based upon current information and events, it believes that it is probable that the Company will be unable to collect all amounts due under the contractual terms of the loan agreement.

This assessment is made on an individual

Risk rating categories range from "1" to "5" with "1" representing the lowest risk of loss and "5" representing the highest risk of loss with the ratings updated quarterly.

At the time of origination or purchase, loans held for investment are ranked as a “2” and will move accordingly going forward based on the ratings which are defined as follows:

Very Low Risk- Investment exceeding fundamental performance expectations and/or capital gain expected.

Trends and risk factors since time of investment are favorable.

Low Risk- Performing consistent with expectations and a full return of principal and interest expected.

Trends and risk factors are neutral to favorable.

Average Risk- Performing investments requiring closer monitoring.

Trends and risk factors show some deterioration.

High Risk/Delinquent/Potential for Loss- Underperforming investment with the potential of some interest loss but still expecting a positive return on investment.

Trends and risk factors are negative.

Impaired/Defaulted/Loss Likely- Underperforming investment with expected loss of interest and some principal.

The Company also considers qualitative and environmental factors, including, but not limited to, economic and business conditions, nature and volume of the loan portfolio, lending terms, volume and severity of past due loans, concentration of credit and changes in the level of such concentrations in its determination of the allowance for credit losses.

Changes in the allowance for credit losses for the Company’s financial instruments are recorded in Provision/(benefit) for credit losses on the consolidated statements of operations with a corresponding offset to the financial instrument’s amortized cost recorded on the consolidated balance sheets, or as a component of Accounts payable and accrued expenses for unfunded loan commitments.

The Company has elected to not measure an allowance for credit losses for accrued interest receivable as it is timely, following three months time, reversed against interest income when a loan, real estate security or preferred equity investment is placed on nonaccrual status.

The Company did not record reversals of accrued interest receivable during the year ended December 31, 2020.

Loans are charged off against the Provision/(benefit) for credit losses when all or a portion of the principal amount is determined to be uncollectible.

Past due and nonaccrual status

Loans are placed on nonaccrual status and considered non-performing when full payment of principal and interest is unpaid for 90 days or more or where reasonable doubt exists as to timely collection, unless the loan is both well secured and in the process of collection.

Interest received on nonaccrual status loans are accounted for under the cost-recovery method, until qualifying for return to accrual.

Upon restructuring the nonaccrual loan, the Company may return a loan to accrual status when repayment of principal and interest is reasonably assured.

Troubled Debt Restructuring (“TDR”)

The Company classifies an individual financial instrument as a TDR when it has a reasonable expectation that the financial instrument’s contractual terms will be modified in a manner that grants concession to the borrower who is experiencing financial difficulty.

Concessions could include term extensions, payment deferrals, interest rate reductions, principal forgiveness, forbearance, or other actions designed to maximize the Company’s collection on the financial instrument.

The Company determines the allowance for credit losses for financial instruments that are TDRs individually.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

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loan basis each quarter based on such factors as payment status, lien position, borrower financial resources and investment in collateral, collateral type, project economics and geographical location as well as national and regional economic factors.

A reserve is established for an impaired loan when the present value of payments expected to be received, observable market prices or the estimated fair value of the collateral (for loans that are dependent on the collateral for repayment) is lower than the carrying value of that loan.

For collateral dependent impaired loans, impairment is measured using the estimated fair value of collateral less the estimated cost to sell.

Valuations are performed or obtained at the time a loan is determined to be impaired and designated non-performing, and they are updated if circumstances indicate that a significant change in value has occurred.

The Advisor generally will use either the income approach through internally developed valuation models to estimate the fair value of the collateral for such loans or obtain external "as is" appraisals for loan collateral.

A loan is also considered impaired if its terms are modified in a troubled debt restructuring ("TDR").

A TDR occurs when a concession is granted and the debtor is experiencing financial difficulties.

Impairments on TDR loans are generally measured based on the present value of expected future cash flows discounted at the effective interest rate of the original loans.

The Company generally designates non-performing loans at such time as (i) loan payments become 90-days past due;

(ii) the loan has a maturity default;

or (iii) in the opinion of the Company, it is probable the Company will be unable to collect all amounts due according to the contractual terms of the loan.

Income recognition will generally be suspended when a loan is designated non-performing unless the loan is well secured, and resumed only when the suspended loan becomes contractually current and performance is demonstrated to have resumed.

A loan will be written off when it is no longer realizable and legally discharged.

Real Estate Securities

On the acquisition date, all of the Company’s commercial real estate securities were classified as available for sale and carried at fair value, and subsequently any unrealized gains or losses are recognized as a component of accumulated other comprehensive income or loss.

The Company may elect the fair value option for its real estate securities, and as a result, any unrealized gains or losses on such real estate securities will be recorded in the Company’s consolidated statement of operations.

No such election has been made to date.

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Amortization is reflected as an adjustment to interest income in the Company’s consolidated statements of operations.

Impairment Analysis of Real Estate Securities

Commercial real estate securities for which the fair value option has not been elected are periodically evaluated for other-than-temporary impairment.

If the fair value of a security is less than its amortized cost, the security is considered impaired.

Impairment of a security is considered other-than-temporary when (i) the Company has the intent to sell the impaired security;

(ii) it is more likely than not the Company will be required to sell the security;

or (iii) the Company does not expect to recover the entire amortized cost of the security.

If the Company determines that an other-than-temporary impairment exists and a sale is likely, the impairment charge is recognized as an impairment of assets on the Company's consolidated statement of operations.

If a sale is not expected, the portion of the impairment charge related to credit factors is recorded as an impairment of assets on the Company's consolidated statement of operations with the remainder recorded as an unrealized gain or loss on investments reported as a component of accumulated other comprehensive income or loss.

The Company uses the specific identification method in determining the cost relief for real estate securities sold.

Realized gains and losses from the sale of real estate securities are included in the Company’s consolidated statements of operations.

AFS real estate securities which have experienced a decline in the fair value below their amortized cost basis (i.e., impairment) are evaluated each reporting period to determine whether the decline in fair value is due to credit-related factors.

Any impairment that is not credit-related is recognized in accumulated other comprehensive income, while credit-related impairment is recognized as an allowance on the consolidated balance sheets with a corresponding adjustment on the consolidated statements of operations.

If the Company intends to sell an impaired real estate security or more likely than not will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount is recognized in the consolidated statements of operations with a corresponding adjustment to the security’s amortized cost basis.

The Company analyzes the AFS security portfolio on a periodic basis for credit losses at the individual security level using the same criteria described above for those amortized cost financial assets subject to an allowance for credit losses including but not limited to;

performance of the underlying assets in the security, borrower financial resources and investment in collateral, collateral type, credit ratings, project economics and geographic location as well as national and regional economic factors.

The non-credit loss component of the unrealized loss within the Company’s AFS portfolio is recognized as an adjustment to the individual security’s asset balance with an offsetting entry to accumulated other comprehensive income in the consolidated balance sheets.

Repurchase Agreements

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The deferred financing costs related to the Company's various Master Repurchase Agreements as well as certain prepaid subscription costs are included in Prepaid expenses and other assets on the consolidated balance sheets.

Deferred financing cost on the Company's collateralized debt obligations ("CLO") are netted against the Company's CLO payable in the Collateralized debt obligations on the consolidated balance sheets.

Deferred financing cost on the Company's collateralized loan obligations ("CLO") are netted against the Company's CLO payable in the Collateralized loan obligations on the consolidated balance sheets.

Deferred financing costs are amortized over the terms of the respective financing agreement using the effective interest method and included in interest expense on the Company's consolidated statements of operations.

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Share Repurchase Program

The Company has a Share Repurchase Program (the "SRP") that enables stockholders to sell their shares to the Company, subject to certain conditions.

Refer to Note 9 - Stock Transactions for a description of the SRP.

When a stockholder requests a redemption and the redemption is approved by the board of directors, the Company will reclassify such obligation from equity to a liability based on the settlement value of the obligation.

Shares repurchased under the SRP will have the status of authorized but unissued shares.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

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December 31, 2020

The Company has a Share Repurchase Program (the "SRP"), which became effective as of February 28, 2016, that enables stockholders to sell their shares to the Company.

Subject to certain conditions, stockholders that purchased shares of our common stock or received their shares from us (directly or indirectly) through one or more non-cash transactions and have held their shares for a period of at least one year may request that we repurchase their shares of common stock so long as the repurchase otherwise complies with the provisions of Maryland law.

Repurchase requests made following the death or qualifying disability of a stockholder will not be subject to any minimum holding period.

On August 10, 2017, our board of directors amended the SRP to provide that the repurchase price per share for requests will be equal to the lesser of (i) our most recent estimated per-share NAV, as approved by our board of directors from time to time, and (ii) our book value per share, computed in accordance with GAAP, multiplied by a percentage equal to (i) 92.5% , if the person seeking repurchase has held his or her shares for a period greater than one year and less than two years;

(ii) 95% , if the person seeking repurchase has held his or her shares for a period greater than two years and less than three years;

(iii) 97.5% , if the person seeking repurchase has held his or her shares for a period greater than three years and less than four years;

or (iv) 100% , if the person seeking repurchase has held his or her shares for a period greater than four years or in the case of requests for death or disability.

Repurchases pursuant to the SRP, when requested, generally will be made semiannually (each six -month period ending June 30 or December 31, a “fiscal semester”).

Repurchases for any fiscal semester will be limited to a maximum of 2.5% of the weighted average number of shares of common stock outstanding during the previous fiscal year, with a maximum for any fiscal year of 5.0% of the weighted average number of shares of common stock outstanding during the previous fiscal year.

Funding for repurchases pursuant to the SRP for any given fiscal semester will be limited to proceeds received during that same fiscal semester through the issuance of common stock pursuant to any Dividend Reinvestment Plan ("DRIP") in effect from time to time, provided that the board of directors has the power, in its sole discretion, to determine the amount of shares repurchased during any fiscal semester as well as the amount of funds to be used for that purpose.

Due to these limitations, we cannot guarantee that we will be able to accommodate all repurchase requests made during any fiscal semester or fiscal year.

However, a stockholder may withdraw its request at any time or ask that we honor the request when funds are available.

Pending repurchase requests will be honored on a pro rata basis.

We will generally pay repurchase proceeds, less any applicable tax or other withholding required by law, by the 31st day following the end of the fiscal semester during which the repurchase request was made.

Shares repurchased under the SRP will have the status of authorized but unissued shares.

Offering and Related Costs

The Company is currently offering shares of the Company’s common stock, Series A convertible preferred stock (“Series A Preferred Stock”) and Series C convertible preferred stock (the “Series C Preferred Stock,” and, together with the Series A Preferred stock, the “Preferred Stock”) in private placements exempt from the registration requirements of the Securities Act of 1933, as amended (the “Offering”).

In connection with the Offering, the Company incurred various offering costs and will continue to incur these costs until the Offering is complete.

Since 2018, the Company has from time to time offered, and may in the future offer, shares of the Company’s common stock or one or more series of its preferred stock (“Preferred Stock”), including its Series A convertible preferred stock (“Series A Preferred Stock”) and Series C convertible preferred stock (the “Series C Preferred Stock,”) in private placements exempt from the registration requirements of the Securities Act of 1933, as amended.

In connection with these offerings, the Company incurs various offering costs.

These offering costs include but are not limited to legal, accounting, printing, mailing and filing fees, and diligence expenses of broker-dealers.

Offering costs for the common stock are recorded in the Company’s stockholders’ equity, while the offering costs for the Preferred Stock are included within Redeemable convertible preferred stock Series A and Redeemable convertible preferred stock series C, respectively, on the Company’s consolidated balance sheets.

Offering costs for the common stock are recorded in the Company’s stockholders’ equity, while the offering costs for the Preferred Stock are included within Series A Preferred Stock and Series C Preferred Stock, respectively, on the Company’s consolidated balance sheets.

Distribution Reinvestment Plan

Pursuant to the DRIP, stockholders may elect to reinvest distributions by purchasing shares of common stock in lieu of receiving cash.

Pursuant to the Company's distribution reinvestment plan ("DRIP"), stockholders may elect to reinvest distributions by purchasing shares of common stock in lieu of receiving cash.

No dealer manager fees or selling commissions are paid with respect to shares purchased pursuant to the DRIP.

Participants purchasing shares pursuant to the DRIP have the same rights and are treated in the same manner as if such shares were issued pursuant to the Offering.

The purchase price for shares purchased through the DRIP is the lesser of (i) the Company’s most recent estimated per share NAV, and (ii) the Company’s GAAP book value per share.

There is no market for our common stock.

The board of directors may designate that certain cash or other distributions be excluded from the DRIP.

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See Note 12 - Share-Based Compensation.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2019

The Company has conducted its operations to qualify as a REIT for U.S.

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For financial reporting purposes, the TRS is consolidated and a provision for current and deferred taxes is established for the portion of earnings recognized by the Company with respect to its interest in its TRS.

Total income tax expense for the years ended December 31, 2019 , December 31, 2018 and December 31, 2017 were $4.5 million , $0.1 million and $0.2 million respectively.

Total income tax provision/(benefit) for the years ended December 31, 2020, December 31, 2019 and December 31, 2018 were $( 2.1 ) million, $ 4.5 million and $ 0.1 million, respectively.

The Company uses a more-likely-than-not threshold for recognition and derecognition of tax positions taken or to be taken in a tax return.

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Treasury note futures and credit derivatives on various indices including CMBX and CDX.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020

The Company recognizes all derivatives on the consolidated balance sheets at fair value.

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Per Share Data

The Company’s Preferred Stock is considered a participating security.

As such, the Company is required to include the Preferred Stock in the calculation of basic earnings per share and calculate basic earnings per share using the two-class method.

The Company’s Preferred Stock is considered a participating security and the Company calculates basic earnings per share using the two-class method.

The Company’s dilutive earnings per share calculation is computed using the more dilutive result of the treasury stock method, assuming the participating security is a potential common share, or the two-class method, assuming the participating security is not converted.

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• The real estate owned business represents real estate acquired by the Company through foreclosure, deed in lieu of foreclosure, or purchase.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2019

See Note 16 - Segment Reporting for further information regarding the Company's segments.

Redeemable Convertible Preferred Stock

The Company’s Preferred Stock is classified outside of permanent equity in the consolidated balance sheets.

Subject to certain conditions, the Preferred Stock is redeemable at the option of the holder of Preferred Stock, outside of the control of the Company.

As set forth in the Articles Supplementary relating to each of the Series A Preferred Stock and the Series C Preferred Stock (the “Articles Supplementary”) to the Company’s Articles of Amendment and Restatement, the Preferred Stock is redeemable for shares of the Company's common stock, $0.01 par value per share (the "Common Stock") at the option of the shareholder upon a change of control (as defined in the Articles Supplementary) or after the sixth anniversary of the date of issuance.

The Company’s outstanding Preferred Stock is classified outside of permanent equity in the consolidated balance sheets.

Subject to certain conditions, the outstanding Preferred Stock is redeemable at the option of the holders of the Preferred Stock, outside of the control of the Company.

As set forth in the Articles Supplementary relating to each of the Series A Preferred Stock and the Series C Preferred Stock (collectively, the “Articles Supplementary”) to the Company’s Articles of Amendment and Restatement, the Preferred Stock is redeemable for shares of the Company's common stock, $ 0.01 par value per share (the "Common Stock") at the option of the holder upon a change of control (as defined in the Articles Supplementary) or after the sixth anniversary of the date of issuance.

A change in control of the Company occurs if any person acquires more than 50% of the total economic interests or voting power of all securities of the Company, other than in a liquidity event.

Shares of Preferred Stock rank senior to shares of Common Stock with respect to rights to receive dividends and to participate in distributions or payments upon any voluntary or involuntary liquidation, dissolution or winding up of the Company.

Dividends payable on each share of Preferred Stock will be equal to the greater of (i) an amount equal to $16.67 per share and (ii) the monthly dividend that would have been paid had such share of Preferred Stock been converted to a share of Common Stock, subject to proration in the event that such share of Preferred Stock was not outstanding for the full month.

Dividends payable on each share of outstanding Preferred Stock will be equal to the greater of (i) an amount equal to $ 16.67 per share and (ii) the monthly dividend that would have been paid had such share of Preferred Stock been converted to a share of Common Stock, subject to proration in the event that such share of Preferred Stock was not outstanding for the full month.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020

Immediately prior to a “Liquidity Event,” each outstanding share of Series A Preferred Stock shall convert into 299.2 shares of Common Stock, subject to anti-dilution adjustments (the “Conversion Rate”).

Series C Preferred Stock will convert into shares of Common Stock at the same Conversion Rate on the one-year anniversary of a Liquidity Event, subject to the Company’s right to accelerate the conversion to a date no earlier than six months after the Liquidity Event, upon at least ten days prior notice to the holders of the Series C Preferred Stock.

Each outstanding share of Series C Preferred Stock will convert into shares of Common Stock at the same Conversion Rate on the one-year anniversary of a Liquidity Event, subject to the Company’s right to accelerate the conversion to a date no earlier than six months after the Liquidity Event, upon at least ten days prior notice to the holders of the Series C Preferred Stock.

A “Liquidity Event” is defined as (i) the listing of the Common Stock on a national securities exchange or quotation on an electronic inter-dealer quotation system;

1 unchanged sentence

or (iii) any other transaction or series of transaction that results in all shares of Common Stock being transferred or exchange for cash or securities which are listed on a national securities exchange or quoted on an electronic inter-dealer quotation system.

If there has not been a Liquidity Event within six years from the initial issuance of the Preferred Stock, each holder of Preferred Stock shall have the right to convert all, but not less than all, of the Preferred Stock held by such holder into Common Stock at the Conversion Rate.

Each holder also has the option to convert its shares of Preferred Stock into Common Stock upon a change in control (as defined in the respective Articles Supplementary for the Series A Preferred Stock and Series C Preferred Stock) of the Company.

In addition, neither the Company nor a holder of shares of Preferred Stock may redeem shares of the Preferred Stock until six years from the initial issuance of the Preferred Stock, except in cases of a change in control (as defined in the respective Articles Supplementary).

Holders of the Preferred Stock are entitled to vote on each matter submitted to a vote of the stockholders of the Company upon which the holders of Common Stock are entitled to vote, upon which the holders of the Preferred Stock and holders of the Common Stock shall vote together as a single class.

The number of votes applicable to a share of Preferred Stock will be equal to the number of shares of Common Stock a share of Preferred Stock could have been converted into as of the record date set for purposes of such stockholder vote (rounded down to the nearest whole number of shares of Common Stock).

If there has not been a Liquidity Event within six years from the initial issuance of the outstanding Preferred Stock, each holder of Preferred Stock shall have the right to convert all, but not less than all, of the Preferred Stock held by such holder into Common Stock at the Conversion Rate.

Each holder also has the option to convert its shares of outstanding Preferred Stock into Common Stock upon a change in control (as defined in the respective Articles Supplementary for the Series A Preferred Stock and Series C Preferred Stock) of the Company.

In addition, neither the Company nor a holder of shares of outstanding Preferred Stock may redeem shares of the Preferred Stock until six years from the initial issuance of the Preferred Stock, except in cases of a change in control (as defined in the respective Articles Supplementary).

Holders of the outstanding Preferred Stock are entitled to vote on each matter submitted to a vote of the stockholders of the Company upon which the holders of Common Stock are entitled to vote, upon which the holders of the Preferred Stock and holders of the Common Stock shall vote together as a single class.

The number of votes applicable to a share of outstanding Preferred Stock will be equal to the number of shares of Common Stock a share of Preferred Stock could have been converted into as of the record date set for purposes of such stockholder vote (rounded down to the nearest whole number of shares of Common Stock).

In addition, the affirmative vote of the holders of two-thirds of the outstanding shares of Preferred Stock is required to approve the issuance of any equity securities senior to the Preferred Stock and to take certain actions materially adverse to the holders of the Preferred Stock.

Recently Adopted Accounting Pronouncements

In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU")

2016-02 ("ASC 842"), Leases, which replaced Topic 840, Leases, and requires lessees to recognize leases on the balance sheet

and disclose key information about leasing arrangements ("ASU 2016-02").

ASC 842 was subsequently amended by ASU

2018-01, “Land Easement Practical Expedient for Transition to ASC 842” ("ASU 2018-01");

ASU 2018-10, Codification

Improvements to ASC 842, Leases” ("ASU 2018-10");

and ASU 2018-11, “Targeted Improvements” ("ASU 2018-11").

The new standard establishes a right-of-use ("ROU") model that requires a lessee to recognize a ROU asset and lease liability

on the balance sheet for all leases with a term longer than 12 months.

The Company adopted ASC 842 on January 1, 2019.

Accounting Pronouncements Not Yet Adopted

In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326):

Measurement of Credit Losses on Financial Instruments.

The standard and subsequent amendments, known as the Current Expected Credit Loss (“CECL”) model, significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income.

CECL amends the existing credit loss model to reflect a reporting entity's current estimate of all expected credit losses, not only based on historical experience and current conditions, but also by including reasonable and supportable forecasts incorporating forward-looking information.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2019

For available-for-sale (“AFS”) debt securities, unrealized credit losses will be recognized as allowances rather than reductions in amortized cost basis and elimination of the OTTI concept will result in more frequent estimation of credit losses.

2016-13 is effective for fiscal years and interim periods beginning after December 15, 2019, and will be adopted through a cumulative-effect adjustment to accumulated deficit as of January 1, 2020.

The CECL reserve required under ASU 2016-13 is a valuation account that is deducted from the amortized cost basis of the related loans and AFS debt securities on our consolidated balance sheets, which will reduce our stockholders’ equity.

The initial CECL reserve recorded on January 1, 2020 will be reflected as a direct charge against retained earnings;

however, future net changes to the CECL reserve will be recognized in net income on our consolidated statement of operations.

ASU 2016-13 does not require use of a particular method for determining the CECL reserve, but it does specify the allowance should be based on relevant information about past events, including historical loss experience, composition of the current loan and AFS debt securities portfolio, current conditions, and reasonable and supportable forecasts for the expected term of each loan.

We expect that recognition of credit losses will generally be accelerated under the CECL model.

Additionally, but for a few narrow exceptions, ASU 2016-13 does not have a minimum threshold for recognition of impairment losses and requires that all financial instruments, including those for which there is a low risk of loss, incur some amount of valuation reserve to reflect the inherent risk of loss regardless of credit quality, amount of subordinate capital, or other risk mitigants.

As part of the implementation process, we have utilized loan loss forecasting models and have implemented policies, systems and controls necessary for the implementation and ongoing measurement of the CECL reserve.

We elected to utilize a widely-used analytical model incorporating a loss-given-default methodology and loan performance data for commercial real estate loans dating back to 1998.

Our loans may include commitments to fund incremental proceeds to our borrowers over the life of the loan, which are also subject to the CECL model.

The CECL reserve related to future loan funding will be recorded as a component of Other Liabilities on our balance sheet and be estimated using the same process as for our outstanding loan balances.

Changes in this component of the CECL reserve will similarly impact our consolidated net income.

Upon adoption of ASU 2016-13 on January 1, 2020, we expect to record a cumulative-effect adjustment to our accumulated deficit of $7.8 million , or $0.18 book value per share, which is 0.27% of the aggregate commitment amount of the Company’s loan portfolio at December 31, 2019.

We do not expect the impact of CECL on our portfolio of AFS debt securities to be material.

In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820), Disclosure Framework - Changes

to the Disclosure Requirements for Fair Value Measurement" ("ASU 2018-13").

The guidance provides amendments to the fair

value measurement disclosure requirements of ASC 820.

ASU 2018-13 is effective for all entities for fiscal years beginning

after December 15, 2019, including interim periods therein.

Early adoption is permitted for any eliminated or

modified disclosures upon issuance of this ASU.

The Company is currently evaluating the impact of this new guidance.

Company does not expect the adoption of ASU 2018-13 to have a material impact on its financial statements and related

BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2019

On March 12, 2020, the FASB issued ASU No.

2020-04, Reference Rate Reform (Topic 848):

Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary optional expedients and exceptions to the US GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates.

The guidance is effective upon issuance and generally can be applied through December 31, 2022.

The Company has not adopted any of the optional expedients or exceptions through December 31, 2020, but will continue to evaluate the possible adoption of any such expedients or exceptions during the effective period as circumstances evolve.

Note 3 - Commercial Mortgage Loans

The following table is a summary of the Company's commercial mortgage loans, held for investment, carrying values by class (dollars in thousands):

December 31, 2019

December 31, 2018

December 31, 2020 December 31, 2019

Senior loans $ 2,698,823 $ 2,721,325

Mezzanine loans 15,911 41,638

Total gross carrying value of loans 2,714,734 2,762,963

Allowance for loan losses (1)

Allowance for credit losses (1)

Total commercial mortgage loans, held for investment, net $ 2,693,848 $ 2,762,042

________________________

(1) Includes $0.0 million and $4.1 million of loan loss provision specifically reserved on 1 loan in non-performing status as of December 31, 2019 and December 31, 2018, respectively.

The following table presents the activity in the Company's allowance for loan losses (dollars in thousands):

Year Ended December 31,

Beginning of period

Loan loss provision/(recovery)

Ending allowance for loan losses

(1) As of December 31, 2020 and 2019, there have been no specific reserves for loans in non-performing status.

As of December 31, 2020 and December 31, 2019, the Company's total commercial mortgage loan portfolio, excluding commercial mortgage loans accounted for under the fair value option, was comprised of 130 and 122 loans, respectively.

The following table represents the composition by loan type of the Company's commercial mortgage loans portfolio, excluding commercial mortgage loans, held for investment (dollars in thousands).

December 31, 2019

Allowance for Credit Losses

The following table presents the activity in the Company's allowance for credit losses, excluding the unfunded loan commitments, as of December 31, 2020 (dollars in thousands):

BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020

Year Ended December 31, 2020

MultiFamily Retail Office Industrial Mixed Use Hospitality Self Storage Manufactured Housing Total

Beginning Balance $ 322 $ 202 $ 249 $ 23 $ 4 $ 103 $ — $ 18 $ 921

Cumulative-effect adjustment upon adoption of ASU 2016-13 3,220 386 1,966 434 9 739 399 58 7,211

Current Period:

Provision/(benefit) for credit losses ( 447 ) ( 184 ) ( 640 ) 3,338 119 11,231 ( 282 ) 46 13,181

Write offs — — — — — ( 427 ) — — ( 427 )

Ending Balance $ 3,095 $ 404 $ 1,575 $ 3,795 $ 132 $ 11,646 $ 117 $ 122 $ 20,886

The Company recorded an increase in its allowance for credit losses during the year ended December 31, 2020 of $ 13.2 million.

This is primarily driven by the significant adverse change in the overall economic outlook due to the COVID-19 pandemic.

The following table presents the activity in the Company's allowance for credit losses, for the unfunded loan commitments, as of December 31, 2020 (dollars in thousands):

Year Ended December 31, 2020

MultiFamily Retail Office Industrial Mixed Use Hospitality Self Storage Manufactured Housing Total

Beginning Balance $ — $ — $ — $ — $ — $ — $ — $ — $ —

Cumulative-effect adjustment upon adoption of ASU 2016-13 239 40 150 30 1 57 28 5 550

Current Period:

Provision/(benefit) for credit losses ( 154 ) ( 40 ) ( 103 ) 388 13 44 ( 28 ) ( 5 ) 115

Ending Balance $ 85 $ — $ 47 $ 418 $ 14 $ 101 $ — $ — $ 665

The following table represents the composition by loan type of the Company's commercial mortgage loans portfolio, excluding commercial mortgage loans, held for investment (dollars in thousands):

December 31, 2020 December 31, 2019

Loan Type Par Value Percentage Par Value Percentage

Multifamily $ 1,202,694 44.2 % $ 1,491,971 53.9 %

Office 517,464 19.0 % 414,772 15.0 %

Hospitality 403,908 14.8 % 446,562 16.1 %

Industrial 243,404 8.9 % 118,743 4.3 %

Mixed Use 102,756 3.8 % 58,808 2.1 %

Self Storage 86,424 3.2 % 67,767 2.4 %

Retail 78,550 2.9 % 111,620 4.0 %

Manufactured Housing 71,263 2.6 % 44,656 1.6 %

Land 16,400 0.6 % 16,400 0.6 %

Total $ 2,722,863 100.0 % $ 2,771,299 100.0 %

BENEFIT STREET PARTNERS REALTY TRUST, INC.

1 unchanged sentence

December 31, 2020

As of December 31, 2019 and December 31, 2018 , the Company's total commercial mortgage loans, held-for-sale, measured at fair value was comprised of 7 and 7 loans, respectively.

As of December 31, 2019 and December 31, 2018 , the contractual principal outstanding of commercial mortgage loans, held-for-sale, measured at fair value was $112.5 million and $77.1 million , respectively.

As of December 31, 2019 and December 31, 2018 , none of the Company's commercial mortgage loans, held-for-sale, measured at fair value were in default or greater than 90 days past due.

As of December 31, 2020 and 2019, the Company's total commercial mortgage loans, held-for-sale, measured at fair value was comprised of three and seven loans, respectively.

As of December 31, 2020 and 2019, the contractual principal outstanding of commercial mortgage loans, held-for-sale, measured at fair value was $ 67.6 million and $ 112.5 million, respectively.

As of December 31, 2020 and 2019, none of the Company's commercial mortgage loans, held-for-sale, measured at fair value were in default or greater than 90 days past due.

The following table represents the composition by loan type of the Company's commercial mortgage loans, held-for-sale, measured at fair value (dollars in thousands):

December 31, 2020 December 31, 2019

Loan Type Par Value Percentage Par Value Percentage

Industrial $ 67,550 99.9 % $ 23,625 21.0 %

Multifamily 100 0.1 % 78,250 69.6 %

Retail — — % 2,613 2.3 %

Hospitality — — % 8,000 7.1 %

Total $ 67,650 100.0 % $ 112,488 100.0 %

Loan Credit Quality and Vintage

The following tables present the amortized cost of our commercial mortgage loans, held for investment as of December 31, 2020, by loan type, the Company’s internal risk rating and year of origination.

The risk ratings are updated as of December 31, 2020.

2020 2019 2018 2017 2016 2015 Prior Total

1-2 internal grade $ 583,550 $ 349,588 $ 188,975 $ — $ — $ — $ 3,488 $ 1,125,601

3-4 internal grade — — 35,887 37,812 — — — 73,699

Total Multifamily Loans $ 583,550 $ 349,588 $ 224,862 $ 37,812 $ — $ — $ 3,488 $ 1,199,300

1-2 internal grade $ 13,277 $ 22,760 $ 16,400 $ — $ — $ — $ — $ 52,437

3-4 internal grade — 12,872 29,425 — — — — 42,297

Total Retail Loans $ 13,277 $ 35,632 $ 45,825 $ — $ — $ — $ — $ 94,734

1-2 internal grade $ 244,301 $ 160,709 $ 61,169 $ 40,846 $ — $ — $ — $ 507,025

3-4 internal grade — — — 8,392 — — — 8,392

Total Office Loans $ 244,301 $ 160,709 $ 61,169 $ 49,238 $ — $ — $ — $ 515,417

1-2 internal grade $ 119,193 $ 89,590 $ — $ — $ — $ 33,655 $ — $ 242,438

3-4 internal grade — — — — — — — —

Total Industrial Loans $ 119,193 $ 89,590 $ — $ — $ — $ 33,655 $ — $ 242,438

BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020

1-2 internal grade $ 30,246 $ — $ 59,451 $ 12,839 $ — $ — $ — $ 102,536

3-4 internal grade — — — — — — — —

Total Mixed Use Loans $ 30,246 $ — $ 59,451 $ 12,839 $ — $ — $ — $ 102,536

1-2 internal grade $ 26,878 $ 10,547 $ — $ — $ — $ — $ — $ 37,425

3-4 internal grade — 160,079 115,026 90,612 — — — 365,717

Total Hospitality Loans $ 26,878 $ 170,626 $ 115,026 $ 90,612 $ — $ — $ — $ 403,142

Self Storage:

1-2 internal grade $ 41,305 $ — $ 44,908 $ — $ — $ — $ — $ 86,213

3-4 internal grade — — — — — — — —

Total Self Storage Loans $ 41,305 $ — $ 44,908 $ — $ — $ — $ — $ 86,213

Manufactured Housing:

1-2 internal grade $ 25,905 $ 45,049 $ — $ — $ — $ — $ — $ 70,954

3-4 internal grade — — — — — — — —

Total Manufactured Housing Loans $ 25,905 $ 45,049 $ — $ — $ — $ — $ — $ 70,954

Total $ 1,084,655 $ 851,194 $ 551,241 $ 190,501 $ — $ 33,655 $ 3,488 $ 2,714,734

Past Due Status

The following table presents an aging summary of the loans amortized cost basis at December 31, 2020 (dollars in thousands):

Multifamily Retail Office Industrial Mixed Use Hospitality Self Storage Manufactured Housing Total

Current $ 1,161,488 $ 94,734 $ 515,417 $ 242,438 $ 102,536 $ 346,067 $ 86,213 $ 70,954 $ 2,619,847

1-29 days past due — — — — — — — — —

30-59 days past due (1)

37,812 — — — — — — — 37,812

60-89 days past due — — — — — — — — —

90-119 days past due — — — — — — — — —

120+ days past due (1)

— — — — — 57,075 — — 57,075

Total $ 1,199,300 $ 94,734 $ 515,417 $ 242,438 $ 102,536 $ 403,142 $ 86,213 $ 70,954 $ 2,714,734

________________________

(1) For the year ended December 31, 2020, interest income recognized on these two loans was $ 1.9 million.

As of December 31, 2020, the Company had two loans on non-accrual status with a total cost basis of $ 94.9 million for which there was no related allowance for credit losses.

As of December 31, 2019, the Company had one loan on non-accrual status with a cost basis of $ 57.1 million.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020

14 unchanged sentences

All commercial mortgage loans, excluding loans classified as commercial mortgage loans, held-for-sale, measured at fair value within the consolidated balance sheets, are assigned an initial risk rating of 2.0 .

As of December 31, 2019 and December 31, 2018 , the weighted average risk ratings of loans were 2.1 and 2.1 , respectively.

The following table represents the allocation by risk rating for the Company's commercial mortgage loans, excluding loans classified as commercial mortgage loans, held-for-sale, measured at fair value:

December 31, 2019

December 31, 2018

Number of Loans

As of December 31, 2019 , the Company had 1 loan on non-accrual status with an unpaid principal balance of $57.1 million that had interest past due for greater than 90 days.

As of December 31, 2018 , the Company had 1 loan on non-accrual status with an unpaid principal balance of $ 14.3 million that had interest past due for greater than 90 days.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2019

For the year ended December 31, 2019 and December 31, 2018 , the activity in the Company's commercial mortgage loans, held-for-investment portfolio was as follows (dollars in thousands):

As of December 31, 2020 and 2019, the weighted average risk ratings of loans were 2.2 and 2.1 , respectively.

The following table represents the allocation by risk rating for the Company's commercial mortgage loans, held for investment, measured at fair value:

December 31, 2020 December 31, 2019

Risk Rating Number of Loans Par Value Risk Rating Number of Loans Par Value

1 — $ — 1 — —

2 104 2,232,045 2 113 2,452,330

3 22 384,040 3 8 298,994

4 4 106,778 4 1 19,975

130 $ 2,722,863 122 $ 2,771,299

For the years ended December 31, 2020 and December 31, 2019, the activity in the Company's commercial mortgage loans, held for investment portfolio was as follows (dollars in thousands):

Year Ended December 31,

Balance at Beginning of Year $ 2,762,042 $ 2,206,830

Cumulative-effect adjustment upon adoption of ASU 2016-13 ( 7,211 ) —

Acquisitions and originations 1,287,720 1,326,983

3 unchanged sentences

Net fees capitalized into carrying value of loans ( 6,562 ) ( 5,339 )

Loan Loss recovery/(provision)

Provision/(benefit) for credit losses ( 13,181 ) ( 3,007 )

Charge-off from allowance 427 6,922

Transfer to real estate owned ( 35,064 ) —

Transfer on deed in lieu of foreclosure to real estate owned — ( 14,937 )

Balance at End of Period

As of December 31, 2019 , the Company wrote off a commercial mortgage loan, held for investment, with a carrying value $14.9 million in exchange for the possession of a REO investment at a fair value of $8.1 million at the time of the transfer.

The $8.1 million REO investment is comprised of $8.1 million of real property (building and improvements) and $0.0 million of personal property (furniture, fixture, and equipment).

The transfer occurred when the Company took possession of the property by completing a deed-in-lieu of foreclosure transaction which resulted in a charge-off of $6.4 million that was taken through the loan loss provision in prior periods as well as $0.5 million of additional loan loss provision at the time of transfer.

The Company accounted for the REO acquired during the period ended December 31, 2019 as an asset acquisition.

The results of operations of the REO have been included in the Company’s consolidated statements of operations since the acquisition date.

Balance at End of Year $ 2,693,848 $ 2,762,042

BENEFIT STREET PARTNERS REALTY TRUST, INC.

1 unchanged sentence

December 31, 2020

During the year ended December 31, 2020, the Company wrote off a commercial mortgage loan, held for investment, with a carrying value of $ 14.4 million in exchange for the possession of a REO investment at a fair value of $ 14.0 million at the time of the transfer.

This $ 14.0 million REO investment was comprised of $ 11.6 million of real property (land, building and improvements) and $ 2.4 million of personal property (furniture, fixture, and equipment).

The transfer occurred when the Company took possession of the property by completing a foreclosure transaction in March 2020, resulting in a $ 0.4 million impairment loss at the time of transfer.

Since the foreclosure was entered into due to the borrower experiencing financial difficulty and the recorded investment in the receivable was more than the fair value for the collateral collected, the transaction qualifies as a TDR.

The Company sold this REO asset during the year ended December 31, 2020 for a $ 1.4 million gain, presented net of direct selling costs associated with the disposition of the asset, included within Realized gain/loss on sale of real estate owned assets, held-for-sale in the Company's consolidated statements of operations.

The results of operations of the REO and the gain on sale have been included in the Company’s consolidated statements of operations for the year ended December 31, 2020.

During the year ended December 31, 2020, the Company reached an agreement with a borrower to take possession of certain real estate collateral.

At the time of transfer, the carrying value of the commercial mortgage loan, held for investment was $ 21.1 million, which was exchanged for possession of the REO asset at a purchase price of $ 21.4 million.

This $ 21.4 million REO investment was comprised of $ 18.9 million of real property (land, building and improvements) and $ 2.5 million of personal property (furniture, fixture, and equipment).

The Company accounted for the REO acquired during the year ended December 31, 2020 as an asset acquisition.

No gain or loss was recognized at the time of transfer.

The Company sold this REO asset during the year ended December 31, 2020 for a $ 0.4 million gain, included within Realized gain/loss on sale of real estate owned assets, held-for-sale in the Company's consolidated statements of operations.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020

Note 4 - Real Estate Securities

1 unchanged sentence

December 31, 2020

Interest Rate

Type Interest Rate Maturity Par Value Fair Value

CMBS 1 3.0 % 5/15/2022 $ 13,250 $ 12,657

CMBS 2 2.2 % 6/26/2025 10,800 10,335

CMBS 3 2.5 % 2/15/2036 40,000 38,292

CMBS 4 1.9 % 6/15/2037 8,000 7,892

CMBS 5 2.1 % 9/15/2037 24,000 23,297

CMBS 6 2.3 % 6/15/2034 12,000 11,580

CMBS 7 1.5 % 12/15/2036 20,000 18,975

CMBS 8 1.8 % 12/15/2036 25,000 23,268

CMBS 9 2.3 % 3/15/2035 25,665 24,840

December 31, 2019

Interest Rate

Type Interest Rate Maturity Par Value Fair Value

CMBS 1 4.7 % 5/15/2022 $ 13,250 $ 13,274

CMBS 2 3.8 % 6/26/2025 12,131 12,151

CMBS 3 4.1 % 2/15/2036 40,000 40,186

CMBS 4 3.7 % 5/15/2036 18,500 18,535

CMBS 5 3.1 % 5/15/2036 15,000 15,019

CMBS 6 3.2 % 5/15/2037 13,500 13,525

CMBS 7 3.4 % 5/15/2037 15,000 15,028

CMBS 8 3.2 % 6/15/2037 7,000 7,013

CMBS 9 3.6 % 2/15/2036 9,600 9,641

CMBS 10 3.5 % 8/15/2036 10,000 10,027

CMBS 11 3.6 % 6/15/2037 8,000 8,015

CMBS 12 3.3 % 7/15/2038 13,000 13,022

CMBS 13 3.3 % 9/15/2037 32,000 32,074

CMBS 14 3.7 % 9/15/2037 24,000 24,084

CMBS 15 3.3 % 10/19/2038 50,000 50,094

CMBS 16 3.7 % 10/19/2038 26,000 26,029

CMBS 17 3.2 % 6/15/2034 15,000 15,022

CMBS 18 3.5 % 6/15/2034 6,500 6,509

CMBS 19 3.9 % 6/15/2034 12,000 12,022

CMBS 20 3.1 % 12/15/2036 20,000 20,021

CMBS 21 3.4 % 12/15/2036 25,000 25,025

The Company classified its CMBS investments as available for sale as of December 31, 2020 and December 31, 2019.

These investments are reported at fair value in the consolidated balance sheets with changes in fair value recorded in accumulated other comprehensive income/(loss).

The following table shows the amortized cost, unrealized gain/(loss) and fair value of the Company's CMBS investments (dollars in thousands):

Amortized Cost

Unrealized Gain

Unrealized Loss

The weighted average contractual maturity for CLO investments included within the CMBS portfolio as of December 31, 2020 and December 31, 2019 was 14 and 17 years.

The weighted average contractual maturity for single asset single borrower "SASB" investments as of December 31, 2020 and December 31, 2019 was 14 and 5 years.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020

The following table shows the amortized cost, allowance for expected credit losses, unrealized gain/(loss) and fair value of the Company's CMBS investments by investment type (dollars in thousands):

Amortized Cost Credit Loss Allowance Unrealized Gain Unrealized Loss Fair Value

December 31, 2020

As of December 31, 2019 the Company held 21 CMBS positions with an aggregate carrying value of $387.3 million and an unrealized loss of $1.0 million , of which 2 positions had an unrealized loss for a period greater than twelve months.

As of December 31, 2018 , the Company held 2 CMBS positions with an aggregate carrying value of $26.9 million and an unrealized loss of $0.5 million of which no positions had an unrealized loss for a period greater than twelve months.

CLO $ 123,444 $ — $ — $ ( 4,888 ) $ 118,556

SASB 55,948 — — ( 3,368 ) 52,580

Total $ 179,392 $ — $ — $ ( 8,256 ) $ 171,136

December 31, 2019

CLO $ 330,000 $ — $ 1 ( 881 ) $ 329,120

SASB 57,294 — — ( 98 ) 57,196

Total $ 387,294 $ — $ 1 $ ( 979 ) $ 386,316

As of December 31, 2020 the Company held nine CMBS positions with an amortized cost basis of $ 179.4 million and an unrealized loss of $ 8.3 million, of which seven positions had an unrealized loss for a period greater than twelve months.

As of December 31, 2019, the Company held 21 CMBS positions with an amortized cost basis of $ 387.3 million and an unrealized loss of $ 1.0 million of which 2 positions had an unrealized loss for a period greater than twelve months.

The following table provides information on the unrealized losses and fair value on the Company's real estate securities, CMBS, available for sale that were in an unrealized loss position, and for which an allowance for credit losses has not been recorded as of December 31, 2020 and December 31, 2019 (amounts in thousands):

Fair Value Unrealized Loss

Securities with an unrealized loss less than 12 months Securities with an unrealized loss greater than 12 months Securities with an unrealized loss less than 12 months Securities with an unrealized loss greater than 12 months

December 31, 2020

CLOs $ 63,131 $ 55,425 $ ( 2,824 ) $ ( 2,064 )

SASB — 52,580 — ( 3,368 )

Total $ 63,131 $ 108,005 $ ( 2,824 ) $ ( 5,432 )

December 31, 2019

CLOs $ 315,845 $ 13,275 $ ( 863 ) $ ( 17 )

SASB 45,045 12,151 ( 67 ) ( 31 )

Total $ 360,890 $ 25,426 $ ( 930 ) $ ( 48 )

As of December 31, 2020 and December 31, 2019, there were seven securities and two securities, respectively with unrealized losses for a period greater than twelve months reflected in the table above.

After evaluating the securities, the Company concluded that the unrealized losses reflected above were noncredit-related and would be recovered from the securities’ estimated future cash flows.

The Company considered a number of factors in reaching this conclusion, including that the Company did not intend to sell the securities, it was not considered more likely than not that we would be forced to sell the securities prior to recovering our amortized cost, the portfolio is made up of investment grade securities of recent originations and higher tranches, and that there were no material credit events that would have caused us to otherwise conclude that the Company would not recover our cost.

The allowance for credit losses is calculated using a discounted cash flow approach and is measured as the difference between the original cash flows expected to be collected to the revised cash flows expected to be collected discounted using the effective interest rate, limited by the amount that the fair value is less than the amortized cost basis.

Significant judgment is used in projecting cash flows.

As a result, actual income and/or credit losses could be materially different from what is currently projected and/or reported.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

3 unchanged sentences

Year Ended December 31,

2020 2019 2018

Unrealized gain/(loss) available for sale securities $ ( 8,026 ) $ ( 978 ) $ ( 459 )

4 unchanged sentences

Due to the Company's designation as a REIT, there was no tax impact on unrealized gain/(loss) on available for sale securities.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2019

The deterioration in fair value of real estate securities for both collateralized loan obligations and other securities as of December 31, 2020 can be attributed mainly to the market down-turn and volatility as a result of high unemployment and credit uncertainties related to the outbreak of COVID-19.

Management currently does not have the intention to sell any of the real estate securities as of December 31, 2020.

Note 5 - Real Estate Owned

The following table summarizes the Company's real estate asset acquisitions for the twelve months ended December 31, 2019 (dollars in thousands):

The following table summarizes the Company's real estate owned assets as of December 31, 2020 (dollars in thousands):

As of December 31, 2020

Acquisition Date

Property Type

Primary Location(s)

Building and Improvements

Furniture, Fixtures and Equipment

Accumulated Depreciation

Real Estate Owned, net

Acquisition Date Property Type Primary Location(s) Land Building and Improvements Furniture, Fixtures and Equipment Accumulated Depreciation Real Estate Owned, net

October 2019 (1)

Office Jeffersonville, IN $ 1,887 $ 21,989 $ 3,565 $ ( 931 ) $ 26,510

$ 1,887 $ 21,989 $ 3,565 $ ( 931 ) $ 26,510

________________________

(1) Refer to Note 2 for the useful life of the above assets.

The following table summarizes the Company's real estate owned assets as of December 31, 2019 (dollars in thousands):

As of December 31, 2019

Acquisition Date Property Type Primary Location(s) Land Building and Improvements Furniture, Fixtures and Equipment Accumulated Depreciation Real Estate Owned, net

August 2019 (1)(2)

Hotel Chicago, IL $ — $ 8,110 $ — $ ( 86 ) $ 8,024

October 2019 (1)

Jeffersonville, IN

Office Jeffersonville, IN 1,887 25,554 — ( 133 ) $ 27,309

$ 1,887 $ 33,664 $ — $ ( 219 ) $ 35,333

________________________

(1) Refer to Note 2 for the useful life of the above assets.

(2) Represents assets acquired by the Company by completing a deed-in-lieu of foreclosure transaction.

Depreciation expense for the twelve months ended December 31, 2019 totaled $0.2 million .

Depreciation expense for the years ended December 31, 2020 and 2019 totaled $ 1.0 million and $ 0.2 million, respectively.

During the year ended December 31, 2020, the Company entered into a deed in lieu of foreclosure agreement which resulted in the transfer of the REO asset located in Chicago, Illinois to a third party and thereby extinguished $ 11.0 million of debt that was acquired by the Company in 2020.

The cost basis of the REO asset at the time of transfer was $ 16.3 million and liabilities assumed by the third party, including the extinguishment of debt, were $ 19.5 million, resulting in a realized gain of $ 3.2 million recognized in the consolidated statements of operations for the year ended December 31, 2020.

In addition, during the first quarter of 2020, the Company recorded $ 0.4 million of Impairment losses on real estate owned assets in the consolidated statement of operations as indicators of impairment were noted through the Company's test for recoverability and review of the valuation estimates and operating results.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

3 unchanged sentences

Operating Right of Use Asset

The following table summarizes the Company's operating right of use asset recognized in the consolidated balance sheet for the twelve months ended December 31, 2019 (dollars in thousands):

Acquisition Date

Property Type

Primary Location(s)

Operating Right of Use Asset Gross

Accumulated Amortization

Operating Right of Use Asset, net of Amortization

The Company had no operating right of use assets as of December 31, 2020 (see Note 5 - Real Estate Owned).

The following table summarizes the Company's operating right of use asset recognized in the consolidated balance sheets as of December 31, 2019 (dollars in thousands):

Acquisition Date Property Type Primary Location(s) Operating Right of Use Asset Gross Accumulated Amortization Operating Right of Use Asset, Net of Amortization

August 2019 Hotel Chicago, IL $ 6,109 $ ( 130 ) $ 5,979

$ 6,109 $ ( 130 ) $ 5,979

Operating Lease Liabilities

On August 19, 2019, in conjunction with the deed-in-lieu of foreclosure transaction (see Note 3), the Company assumed a non-cancelable ground lease for the land on which the property is located and classified the lease as an operating lease.

The ground lease requires monthly rental payments with annual increases of 3% .

The initial term of the lease expires in 2067 and can be renewed for a sixty -year period.

Rent expense for this operating lease for the twelve months ended December 31, 2019 totaled $0.3 million .

The following table summarizes the Company's schedule of minimum future lease payments (dollars in thousands):

Minimum Future Lease Payments

December 31, 2019

2025 and beyond

Total undiscounted lease payments

Amount representing interest

Present value of lease liability

The discount rate used to calculate the lease liability is 9% and the remaining lease term is 47.95 years.

The Company had no operating lease liabilities as of December 31, 2020 (see Note 5 - Real Estate Owned).

On August 19, 2019, in conjunction with a deed-in-lieu of foreclosure transaction, the Company assumed a non-cancelable ground lease for the land on which the property is located and classified the lease as an operating lease.

The ground lease required monthly rental payments with annual increases of 3 %.

The initial term of the lease expired in 2067, which included a sixty -year period renewal.

Rent expense for this operating lease for the years ended December 31, 2020 and 2019 totaled $ 0.7 million and $ 0.3 million, respectively.

The discount rate used to calculate the lease liability was 9 % and the remaining lease term was 47.95 years as of December 31, 2019.

Intangible Lease Asset

The following table summarizes the Company's intangible lease asset recognized in the consolidated balance sheet for the twelve months ended December 31, 2019 (dollars in thousands):

Acquisition Date

Property Type

Primary Location(s)

Intangible Lease Asset Gross

Accumulated Amortization

Intangible Lease Asset, net of Amortization

Jeffersonville, IN

The following table summarizes the Company's intangible lease asset recognized in the consolidated balance sheets as of December 31, 2020 (dollars in thousands):

Acquisition Date Property Type Primary Location(s) Intangible Lease Asset, Gross Accumulated Amortization Intangible Lease Asset, Net of Amortization

October 2019 Office Jeffersonville, IN $ 14,509 $ ( 963 ) $ 13,546

$ 14,509 $ ( 963 ) $ 13,546

The following table summarizes the Company's intangible lease asset recognized in the consolidated balance sheets as of December 31, 2019 (dollars in thousands):

Acquisition Date Property Type Primary Location(s) Intangible Lease Asset, Gross Accumulated Amortization Intangible Lease Asset, Net of Amortization

October 2019 Office Jeffersonville, IN $ 14,509 $ ( 131 ) $ 14,377

$ 14,509 $ ( 131 ) $ 14,377

Rental Income

On October 15, 2019, the Company purchased an existing triple net lease.

On October 15, 2019, the Company purchased an office building that was subject to an existing triple net lease.

The minimum rental amount due under the lease is subject to annual increases of 1.5 %.

1 unchanged sentence

The remaining lease term is 16.3 years.

Rental income for this operating lease for the twelve months ended December 31, 2019 totaled $0.6 million .

Rental income for this operating lease for the years ended December 31, 2020 and 2019 totaled $ 2.9 million and $ 0.6 million, respectively and is included in Revenue from real estate owned in the consolidated statements of operations.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

1 unchanged sentence

December 31, 2020

The following table summarizes the Company's schedule of future minimum rents to be received (dollars in thousands):

December 31, 2019

The following table summarizes the Company's schedule of future minimum rents to be received under the lease (dollars in thousands):

Minimum Rents December 31, 2020

2026 and beyond 34,168

3 unchanged sentences

The weighted average life of intangible assets as of December 31, 2020 is approximately 16.3 years.

Amortization expense for the twelve months ended December 31, 2019 totaled $0.2 million .

Amortization expense for the years ended December 31, 2020 and 2019 totaled $ 0.8 million and $ 0.2 million, respectively.

The following table summarizes the Company's expected amortization for intangible assets over the next five years, assuming no further acquisitions or dispositions (dollars in thousands):

Amortization Expense

December 31, 2019

Amortization Expense December 31, 2020

2021 $ ( 825 )

Note 7 - Debt

Repurchase Agreements - Commercial Mortgage Loans

The Company entered into repurchase facilities with JPMorgan Chase Bank, National Association (the "JPM Repo Facility"), U.S Bank National Association (the "USB Repo Facility"), Barclays Bank PLC (the "Barclays Revolver Facility" and the "Barclays Repo Facility"), Wells Fargo Bank, National Association (the "WF Repo Facility"), and Credit Suisse AG (the "CS Repo Facility" and together with JPM Repo Facility, USB Repo Facility, WF Repo Facility, Barclays Revolver Facility, and Barclays Repo Facility, the "Repo Facilities").

The Company has entered into repurchase facilities with JPMorgan Chase Bank, National Association (the "JPM Repo Facility"), U.S Bank National Association (the "USB Repo Facility"), Barclays Bank PLC (the "Barclays Revolver Facility" and the "Barclays Repo Facility"), Wells Fargo Bank, National Association (the "WF Repo Facility"), and Credit Suisse AG (the "CS Repo Facility" and together with JPM Repo Facility, USB Repo Facility, WF Repo Facility, Barclays Revolver Facility, and Barclays Repo Facility, the "Repo Facilities").

The Repo Facilities are financing sources through which the Company may pledge one or more mortgage loans to the financing entity in exchange for funds typically at an advance rate of between 65 % to 80 % of the principal amount of the mortgage loan being pledged.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020

The details of the Company's Repo Facilities at December 31, 2020 and December 31, 2019 are as follows (dollars in thousands):

As of December 31, 2020

Repurchase Facility

Committed Financing

Amount Outstanding

Interest Expense (1)

Ending Weighted Average Interest Rate

Initial Term Maturity

Repurchase Facility Committed Financing Amount Outstanding Interest Expense (1)

Ending Weighted Average Interest Rate Initial Term Maturity

JPM Repo Facility (2)

$ 300,000 $ 113,884 $ 5,020 2.54 % 10/6/2022

USB Repo Facility (3)

100,000 5,775 599 2.40 % 6/15/2021

CS Repo Facility (4)

200,000 106,971 3,539 2.84 % 8/19/2021

WF Repo Facility (5)

175,000 27,150 1,041 2.50 % 11/21/2021

Barclays Revolver Facility (6)

100,000 — 387 N/A 9/20/2021

Barclays Repo Facility (7)

300,000 22,560 1,046 2.51 % 3/15/2022

BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2019

Total $ 1,175,000 $ 276,340 $ 11,632

________________________

(1) For the year ended December 31, 2020.

Includes amortization of deferred financing costs.

(2) On September 3, 2019, the committed financing amount was downsized from $520 million to $300 million and the maturity date was amended to January 30, 2021.

(3) Includes two one -year extensions at the option of an indirect wholly-owned subsidiary of the Company, which may be exercised upon the satisfaction of certain conditions.

(4) On March 26, 2019, the Company exercised the extension option upon the satisfaction of certain conditions, and extended the term maturity to March 27, 2020.

(5) Includes three one -year extensions at the Company’s option, which may be exercised upon the satisfaction of certain conditions.

(6) On September 13, 2019, the Company exercised the extension option, and extended the term maturity to September 20, 2021.

There is one more one -year extension option available at the Company's discretion.

(2) On October 6, 2020 the maturity date was amended to October 6, 2022.

(3) On June 9, 2020, the Company exercised the extension option upon the satisfaction of certain conditions, and extended the term maturity to June 15, 2021.

(4) On August 28, 2020, the Company exercised the extension option upon the satisfaction of certain conditions, and extended the term maturity to August 19, 2021.

Additionally, in 2020 the committed financing amount was downsized from $ 300 million to $ 200 million.

(5) On November 17, 2020, the Company exercised the extension option upon the satisfaction of certain conditions, and extended the term maturity to November 21, 2021.

There are two more one-year extension options available at the Company's discretion.

(6) There is one one -year extension option available at the Company's discretion.

(7) Includes two one -year extensions at the Company's option.

As of December 31, 2019

Repurchase Facility

Committed Financing

Amount Outstanding

Interest Expense (1)

Ending Weighted Average Interest Rate

Initial Term Maturity

Repurchase Facility Committed Financing Amount Outstanding Interest Expense (1)

Ending Weighted Average Interest Rate Initial Term Maturity

JPM Repo Facility (2)

GS Repo Facility (3)

$ 300,000 $ 107,526 $ 6,862 4.51 % 1/30/2021

USB Repo Facility (3)

100,000 — 622 N/A 6/15/2020

CS Repo Facility (4)

300,000 87,375 5,563 4.84 % 3/27/2020

WF Repo Facility (5)

175,000 24,942 1,333 3.65 % 11/21/2020

Barclays Revolver Facility (6)

100,000 — 976 N/A 9/20/2021

Barclays Facility (7)

300,000 32,700 1,260 3.80 % 3/15/2022

Total $ 1,275,000 $ 252,543 $ 16,616

________________________

(1) For the year ended December 31, 2019.

Includes amortization of deferred financing costs.

(2) On January 30, 2018 the committed financing amount was upsized from $ 300 million to $ 520 million and the maturity date was amended to January 30, 2020 .

Includes a one -year extension at the Company's option.

(3) Matured on December 27, 2018.

Committed balance was $250 million prior to maturity.

(2) On September 3, 2019, the committed financing amount was downsized from $ 520 million to $ 300 million and the maturity date was amended to January 30, 2021.

(3) Includes two one -year extensions at the option of an indirect wholly-owned subsidiary of the Company, which may be exercised upon the satisfaction of certain conditions.

(5) On July 19, 2018, the committed financing amount was upsized from $ 250 million to $ 300 million .

On June 20, 2018, the Company exercised the extension option upon the satisfaction of certain conditions, and extended the term maturity to June 19, 2019.

(4) On March 26, 2019, the Company exercised the extension option upon the satisfaction of certain conditions, and extended the term maturity to March 27, 2020.

(5) Includes three one -year extensions at the Company’s option, which may be exercised upon the satisfaction of certain conditions.

(7) On July 30, 2018, the committed financing amount was upsized from $ 75 million to $ 100 million .

Includes a one -year extension at the Company's option.

(6) On September 13, 2019, the Company exercised the extension option, and extended the term maturity to September 20, 2021.

There is one more one -year extension option available at the Company's discretion.

(7) Includes two one -year extensions at the Company's option.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020

The Company expects to use the advances from the Repo Facilities to finance the acquisition or origination of eligible loans, including first mortgage loans, subordinated mortgage loans, mezzanine loans and participation interests therein.

2 unchanged sentences

Other financing and loan participation - Commercial Mortgage Loans

On December 11, 2018, the Company transferred $10.0 million of its interest in a term loan to City National Bank ("City National Financing") via a participation agreement.

As of December 31, 2019 , the City National Financing accrued interest at an annual rate of 4.6% The Company incurred $0.2 million of interest expense on the City National Financing for the year ended December 31, 2019 .

On April 10, 2019, the Company terminated the participation agreement with City National Bank and paid off the $ 10.0 million under the participation agreement.

On March 23, 2020, the Company transferred $ 15.2 million of its interest in a term loan to Sterling National Bank ("SNB") via a participation agreement.

During 2020, the Company's outstanding loan increased resultant of future fundings, leading to an increase in amount outstanding via the participation agreement.

The Company incurred $ 0.5 million of interest expense on SNB for the year ended December 31, 2020.

As of December 31, 2020 the outstanding participation balance was $ 31.4 million.

The loan matures on February 9, 2023.

Mortgage Note Payable

On October 15, 2019, the Company obtained a commercial mortgage loan for $ 29.2 million related to the real estate owned portfolio.

As of December 31, 2019 the loan accrued interest at an annual rate of 3.85% .

The Company incurred $0.2 million of interest expense for the year ended December 31, 2019 .

BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2019

As of December 31, 2020 the loan accrued interest at an annual rate of 3.85 % and matures on November 6, 2034.

The Company incurred $ 1.1 million of interest expense for the twelve months ended December 31, 2020.

Additionally, on January 6, 2020, the Company obtained a commercial mortgage loan for $ 11.0 million related to the real estate owned portfolio.

As of December 31, 2020 the loan and related real estate owned asset was no longer held by the Company (see Note 5 - Real Estate Owned) .

The Company incurred $ 0.8 million of interest expense for the twelve months ended December 31, 2020.

Unsecured Debt

Pursuant to a lending and security agreement with Security Benefit Life Insurance Company ("SBL"), which was entered into in February 2020 and amended in March and August 2020, the Company may borrow up to $ 100.0 million at a rate of one-month LIBOR + 4.5 %.

The facility has a maturity of February 10, 2023 and is secured by a pledge of equity interests in certain of the Company’s subsidiaries.

The Company incurred $ 0.2 million of interest expense on the lending agreement with SBL for the twelve months ended December 31, 2020.

As of December 31, 2020, there was no outstanding balance under the lending agreement.

Repurchase Agreements - Real Estate Securities

1 unchanged sentence

The repurchase contracts on each security under an MRA generally mature in 30 - 90 days and terms are adjusted for current market rates as necessary.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020

Below is a summary of the Company's MRAs as of December 31, 2020 and 2019 (dollars in thousands):

As of December 31, 2019

Weighted Average

Amount Outstanding

Accrued Interest

Collateral Pledged (1)

Interest Rate

Days to Maturity

Counterparty Amount Outstanding Accrued Interest Collateral Pledged (1)

Interest Rate Days to Maturity

As of December 31, 2020

JP Morgan Securities LLC $ 33,791 $ 1,668 $ 43,612 1.75 % 31

Wells Fargo Securities, LLC

Wells Fargo Securities, LLC — 1,057 — N/A N/A

Goldman Sachs International 22,440 455 30,794 1.68 % 16

Barclays Capital Inc.

76,809 2,102 97,244 1.71 % 33

Credit Suisse AG — 905 — N/A N/A

Citigroup Global Markets, Inc.

53,788 2,532 71,723 1.70 % 29

Total/Weighted Average $ 186,828 $ 8,719 $ 243,373 1.71 % 33

As of December 31, 2019

Weighted Average

Amount Outstanding

Accrued Interest

Collateral Pledged (1)

Interest Rate

Days to Maturity

JP Morgan Securities LLC $ 83,353 $ 124 $ 93,500 2.53 % 20

Wells Fargo Securities, LLC 178,304 1,199 209,873 2.94 % 11

Barclays Capital Inc.

40,720 221 47,475 2.81 % 23

Citigroup Global Markets, Inc.

91,982 413 103,453 2.69 % 19

Total/Weighted Average $ 394,359 $ 1,957 $ 454,301 2.79 % 16

2 unchanged sentences

Collateralized Loan Obligation

On April 15, 2019 , the Company called all of the outstanding notes issued by BSPRT 2017-FL1 Issuer, Ltd., a wholly owned indirect subsidiary of the Company.

On January 15, 2020, the Company called all of the outstanding notes issued by BSPRT 2017-FL2 Issuer, Ltd., a wholly owned indirect subsidiary of the Company.

The outstanding principal of the notes on the date of the call was $ 21.0 million.

The Company recognized all the remaining unamortized deferred financing costs of $ 4.5 million recorded within the Interest expense line of the consolidated statements of operations, which was a non-cash charge.

As of December 31, 2019 and December 31, 2018 the notes issued by BSPRT 2017-FL2 Issuer, a wholly owned indirect subsidiary of the Company, are collateralized by interests in a pool of 5 and 12 mortgage assets having a total principal balance of $100.8 million and $244.6 million , respectively (the “2017-FL2 Mortgage Assets”).

The sale of the 2017-FL2 Mortgage Assets to BSPRT 2017-FL2 Issuer is governed by a Mortgage Asset Purchase Agreement dated as of November 29, 2017, between the Company and BSPRT 2017-FL2 Issuer.

As of December 31, 2020 and December 31, 2019 the notes issued by BSPRT 2018-FL3 Issuer, Ltd.

4 unchanged sentences

and BSPRT 2018-FL4 Co-Issuer, LLC, each wholly owned indirect subsidiaries of the Company, are collateralized by interests in a pool of 59 and 49 mortgage assets having a principal balance of $ 852.1 million and $ 867.9 million, respectively (the "2018-FL4 Mortgage Assets").

The sale of the 2018-FL4 Mortgage Assets to BSPRT 2018-FL4 Issuer is governed by a Mortgage Asset Purchase Agreement dated as of October 12, 2018, between the Company and BSPRT 2018-FL4 Issuer.

On May 30, 2019, BSPRT 2019-FL5 Issuer, Ltd.

(the “Issuer”) and BSPRT 2019-FL5 Co-Issuer, LLC (the “Co-Issuer”), both wholly owned indirect subsidiaries of the Company, collateralized by interests in a pool of 49 mortgage assets having a principal balance of $810.0 million (the "2019-FL5 Mortgage Assets") entered into an indenture with the OP, as advancing

The sale of the 2018-FL4 Mortgage Assets to BSPRT 2018-FL4 Issuer, Ltd.

is governed by a Mortgage Asset Purchase Agreement dated as of October 12, 2018, between the Company and BSPRT 2018-FL4 Issuer, Ltd.

As of December 31, 2020 and December 31, 2019, the notes issued by BSPRT 2019-FL5 Issuer, Ltd.

and BSPRT 2019-FL5 Co-Issuer, LLC, each wholly owned indirect subsidiaries of the Company, are collateralized by interests in a pool of 54 and 48 mortgage assets having a principal balance of $ 799.8 million and $ 809.4 million respectively (the "2019-FL5 Mortgage Assets").

The sale of the 2019-FL5 Mortgage Assets to BSPRT 2019-FL5 Issuer, Ltd.

is governed by a Mortgage Asset Purchase Agreement dated as of May 30, 2019, between the Company and BSPRT 2019-FL5 Issuer, Ltd.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

1 unchanged sentence

December 31, 2020

Bank National Association as note administrator and U.S.

Bank National Association as trustee, which governs the issuance of approximately $ 714.8 million principal balance secured floating rate notes (the “Notes”), of which $ 639.9 million were purchased by third party investors and $ 74.9 million purchased by a wholly owned subsidiary of the OP.

In addition, concurrently with the issuance of the Notes, the Issuer also issued 95,177 Preferred Shares, par value of $0.001 per share and with an aggregate liquidation preference and notional amount equal to $1,000 per share (the “Preferred Shares”), which were not offered as part of closing the indenture.

federal income tax purposes, the Issuer and Co-Issuer are disregarded entities.

As of December 31, 2019 , the notes issued by BSPRT 2019-FL5 Issuer, Ltd.

and BSPRT 2019-FL5 Co-Issuer, LLC, each wholly owned indirect subsidiaries of the Company, are collateralized by interests in a pool of 48 mortgage assets having a principal balance of $ 809.4 million, respectively (the "2019-FL5 Mortgage Assets").

The sale of the 2019-FL5 Mortgage Assets to BSPRT 2019-FL5 Issuer is governed by a Mortgage Asset Purchase Agreement dated as of May 30, 2019, between the Company and BSPRT 2019-FL5 Issuer.

The Company, through its wholly-owned subsidiaries, holds the preferred equity tranches of all four of the above CLOs of approximately $305.4 million and $288.8 million as of December 31, 2019 and December 31, 2018 , respectively.

The following table represents the terms of the notes issued by the 2017-FL1 Issuer, 2017-FL2 Issuer, 2018-FL3 Issuer, 2018-FL4 Issuer, and 2019-FL5 Issuer (the "CLOs), respectively, as of December 31, 2019 (dollars in thousands):

Par Value Issued

Par Value Outstanding (1)

Interest Rate

Maturity Date

2017-FL2 Issuer

1M LIBOR + 82

2017-FL2 Issuer

1M LIBOR + 110

2017-FL2 Issuer

1M LIBOR + 140

2017-FL2 Issuer

1M LIBOR + 215

2017-FL2 Issuer

1M LIBOR + 345

2018-FL3 Issuer

1M LIBOR + 105

2018-FL3 Issuer

1M LIBOR + 135

2018-FL3 Issuer

1M LIBOR + 165

2018-FL3 Issuer

1M LIBOR + 255

2018-FL3 Issuer

1M LIBOR + 345

2018-FL4 Issuer

1M LIBOR + 105

2018-FL4 Issuer

1M LIBOR + 130

2018-FL4 Issuer

1M LIBOR + 160

2018-FL4 Issuer

1M LIBOR + 210

2018-FL4 Issuer

1M LIBOR + 275

2019-FL5 Issuer

1M LIBOR + 115

2019-FL5 Issuer

1M LIBOR + 148

2019-FL5 Issuer

1M LIBOR + 140

2019-FL5 Issuer

1M LIBOR + 200

2019-FL5 Issuer

1M LIBOR + 240

2019-FL5 Issuer

1M LIBOR + 285

The Company, through its wholly-owned subsidiaries, holds the preferred equity tranches of the above CLOs of approximately $ 256.9 million and $ 305.4 million as of December 31, 2020 and December 31, 2019, respectively.

The following table represents the terms of the notes issued by the 2018-FL3 Issuer, 2018-FL4 Issuer, and 2019-FL5 Issuer (the "CLOs), respectively, as of December 31, 2020 (dollars in thousands):

CLO Facility Tranche Par Value Issued Par Value Outstanding (1)

Interest Rate Maturity Date

2018-FL3 Issuer Tranche A $ 286,700 $ 161,745 1M LIBOR + 105

2018-FL3 Issuer Tranche A-S 77,775 77,775 1M LIBOR + 135

2018-FL3 Issuer Tranche B 41,175 41,175 1M LIBOR + 165

2018-FL3 Issuer Tranche C 39,650 39,650 1M LIBOR + 255

2018-FL3 Issuer Tranche D 42,700 42,700 1M LIBOR + 345

2018-FL4 Issuer Tranche A 416,827 416,659 1M LIBOR + 105

2018-FL4 Issuer Tranche A-S 73,813 73,813 1M LIBOR + 130

2018-FL4 Issuer Tranche B 56,446 56,446 1M LIBOR + 160

2018-FL4 Issuer Tranche C 68,385 68,385 1M LIBOR + 210

2018-FL4 Issuer Tranche D 57,531 57,531 1M LIBOR + 275

2019-FL5 Issuer Tranche A 407,025 407,025 1M LIBOR + 115

2019-FL5 Issuer Tranche A-S 76,950 76,950 1M LIBOR + 148

2019-FL5 Issuer Tranche B 50,000 50,000 1M LIBOR + 140

2019-FL5 Issuer Tranche C 61,374 61,373 1M LIBOR + 200

2019-FL5 Issuer Tranche D 48,600 5,000 1M LIBOR + 240

2019-FL5 Issuer Tranche E 20,250 3,000 1M LIBOR + 285

$ 1,825,201 $ 1,639,227

________________________

(1) Excludes $ 267.1 million of CLO notes, held by the Company, which are eliminated within the collateralized loan obligation line of the consolidated balance sheets as of December 31, 2020.

2 unchanged sentences

December 31, 2020

The following table represents the terms of the notes issued by the 2017-FL1 Issuer, 2017-FL2 Issuer, 2018-FL3 Issuer, and 2018-FL4 Issuer, (the "CLOs), respectively, as of December 31, 2018 (dollars in thousands):

Par Value Issued

Par Value Outstanding (1)

Interest Rate

Maturity Date

2017-FL1 Issuer

1M LIBOR + 135

2017-FL1 Issuer

1M LIBOR + 240

2017-FL1 Issuer

1M LIBOR + 425

2017-FL2 Issuer

1M LIBOR + 82

2017-FL2 Issuer

1M LIBOR + 110

2017-FL2 Issuer

1M LIBOR + 140

2017-FL2 Issuer

1M LIBOR + 215

2017-FL2 Issuer

1M LIBOR + 345

2018-FL3 Issuer

1M LIBOR + 105

2018-FL3 Issuer

1M LIBOR + 135

2018-FL3 Issuer

1M LIBOR + 165

2018-FL3 Issuer

1M LIBOR + 255

2018-FL3 Issuer

1M LIBOR + 345

2018-FL4 Issuer

1M LIBOR + 105

2018-FL4 Issuer

1M LIBOR + 130

2018-FL4 Issuer

1M LIBOR + 160

2018-FL4 Issuer

1M LIBOR + 210

2018-FL4 Issuer

1M LIBOR + 275

CLO Facility Tranche Par Value Issued Par Value Outstanding (1)

Interest Rate Maturity Date

2017-FL2 Issuer Tranche A $ 237,970 $ — 1M LIBOR + 82

2017-FL2 Issuer Tranche A-S 36,357 — 1M LIBOR + 110

2017-FL2 Issuer Tranche B 26,441 — 1M LIBOR + 140

2017-FL2 Issuer Tranche C 25,339 — 1M LIBOR + 215

2017-FL2 Issuer Tranche D 35,255 21,444 1M LIBOR + 345

2018-FL3 Issuer Tranche A 286,700 286,700 1M LIBOR + 105

2018-FL3 Issuer Tranche A-S 77,775 77,775 1M LIBOR + 135

2018-FL3 Issuer Tranche B 41,175 41,175 1M LIBOR + 165

2018-FL3 Issuer Tranche C 39,650 39,650 1M LIBOR + 255

2018-FL3 Issuer Tranche D 42,700 42,700 1M LIBOR + 345

2018-FL4 Issuer Tranche A 416,827 416,827 1M LIBOR + 105

2018-FL4 Issuer Tranche A-S 73,813 73,813 1M LIBOR + 130

2018-FL4 Issuer Tranche B 56,446 56,446 1M LIBOR + 160

2018-FL4 Issuer Tranche C 68,385 68,385 1M LIBOR + 210

2018-FL4 Issuer Tranche D 57,531 57,531 1M LIBOR + 275

2019-FL5 Issuer Tranche A 407,025 407,025 1M LIBOR + 115

2019-FL5 Issuer Tranche A-S 76,950 76,950 1M LIBOR + 148

2019-FL5 Issuer Tranche B 50,000 50,000 1M LIBOR + 140

2019-FL5 Issuer Tranche C 61,374 61,374 1M LIBOR + 200

2019-FL5 Issuer Tranche D 48,600 24,300 1M LIBOR + 240

2019-FL5 Issuer Tranche E 20,250 20,250 1M LIBOR + 285

$ 2,186,563 $ 1,822,345

________________________

(1) Excludes $ 261.4 million of CLO notes, held by the Company, which are eliminated within the collateralized loan obligation line of the consolidated balance sheets as of December 31, 2019.

2 unchanged sentences

December 31, 2020

The below table reflects the total assets and liabilities of the Company's four CLOs.

The below table reflects the total assets and liabilities of the Company's outstanding CLOs.

The CLOs are considered VIEs and are consolidated into the Company's consolidated financial statements as of December 31, 2020 and December 31, 2019 as the Company is the primary beneficiary of the VIE.

The Company is the primary beneficiary of the CLOs because (i) the Company has the power to direct the activities that most significantly affect the VIE’s economic performance and (ii) the right to receive benefits from the VIEs or the obligation to absorb losses of the VIEs that could be significant to the VIE.

Assets (dollars in thousands)

December 31, 2019

December 31, 2018

Assets (dollars in thousands) December 31, 2020 December 31, 2019

Cash and cash equivalents (1)

$ 99,025 $ 89,946

Commercial mortgage loans, held for investment, net (2)

2,044,956 2,294,663

Accrued interest receivable 5,626 6,254

Total Assets $ 2,149,607 $ 2,390,863

Notes payable (3)(4)

$ 1,892,616 $ 2,064,601

Accrued interest payable 1,240 2,576

2 unchanged sentences

(1) Includes $ 98.6 million and $ 89.3 million of cash held by the servicer related to CLO loan payoffs as of December 31, 2020 and December 31, 2019.

(2) The balance is presented net of allowance for loan loss of $0.8 million and $0.6 million as of December 31, 2019 and December 31, 2018 , respectively.

(2) The balance is presented net of allowance for credit losses of $ 19.4 million and $ 0.8 million as of December 31, 2020 and December 31, 2019, respectively.

(3) Includes $ 267.1 million and $ 261.4 million of CLO notes, held by the Company, which are eliminated within the collateralized loan obligation line of the consolidated balance sheets as of December 31, 2020 and December 31, 2019.

(4) The balance is presented net of deferred financing cost and discount of $ 13.7 million and $ 19.2 million as of December 31, 2020 and December 31, 2019, respectively.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2019

Note 8 - Earnings Per Share

4 unchanged sentences

Year Ended December 31,

Numerator 2020 2019 2018

Net income $ 54,746 $ 83,924 $ 52,825

Preferred stock dividends 14,920 15,337 3,644

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As of December 31, 2020 and December 31, 2019, the Company had 44,510,051 and 43,916,815 shares of common stock outstanding, respectively, including shares issued pursuant to the Company's distribution reinvestment plan (the "DRIP"), share repurchases and unvested restricted shares.

As of December 31, 2019 , the Company had $10.7 million outstanding of binding purchase commitments for common stock.

As of December 31, 2018 , the Company did not have any outstanding binding purchase commitments for common stock.

As of December 31, 2020 and December 31, 2019, the Company had 40,515 and 40,500 shares of Series A Preferred Stock outstanding, respectively and 1,400 and 1,400 shares of Series C Preferred Stock outstanding, respectively.

As of December 31, 2019 and 2018, the Company did not have any outstanding of binding purchase commitments for Series A or Series C Preferred Stock.

The following tables present the activity in the Company's Series A Preferred Stock for the periods ended December 31, 2020 and December 31, 2019, respectively (dollars in thousands, except share amounts):

Series A Preferred Stock

Series A Preferred Stock Shares Amount

Beginning Balance, December 31, 2019 40,500 $ 202,144

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Ending Balance, December 31, 2020 40,515 $ 202,292

Series A Preferred Stock Shares Amount

Beginning Balance, December 31, 2018 29,249 $ 145,786

Issuance of Preferred Stock 11,247 56,233

Dividends paid in Preferred Stock 4 24

Offering costs — —

1 unchanged sentence

Ending Balance, December 31, 2019 40,500 $ 202,144

The following tables present the activity in the Company's Series C Preferred Stock for the period ended December 31, 2019 , (dollars in thousands, except share amounts):

Series C Preferred Stock

The following tables present the activity in the Company's Series C Preferred Stock for the periods ended December 31, 2020 and December 31, 2019, (dollars in thousands, except share amounts):

Series C Preferred Stock Shares Amount

Beginning Balance, December 31, 2019 1,400 $ 6,966

4 unchanged sentences

Ending Balance, December 31, 2020 1,400 $ 6,962

Series C Preferred Stock Shares Amount

Beginning Balance, December 31, 2018 — $ —

Issuance of Preferred Stock 1,400 6,998

Dividends paid in Preferred Stock — —

Offering costs — ( 33 )

Amortization of offering costs — 1

Ending Balance, December 31, 2019 1,400 $ 6,966

BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020

Distributions

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federal income taxes.

The Company's distributions are payable by the fifth day following each month end to stockholders of record at the close of business each day during the prior month.

Distribution payments are dependent on the availability of funds.

The Company's board of directors may reduce the amount of distributions paid or suspend distribution payments at any time, and therefore, distributions payments are not assured.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2019

For the years ended December 31, 2019 and December 31, 2018 , the Company declared daily common stock distributions equivalent to 1.44 per annum per share, respectively.

For the years ended December 31, 2019 and December 31, 2018 , the Company declared monthly Preferred Stock dividends per share equivalent to the amount of common stock distributions that would be paid on a conversion of Preferred Stock into common stock.

In April 2020, the Company’s board of directors unanimously approved a transition in the timing of the dividend payments to holders of the Company’s common stock from a monthly payment with daily accruals to a quarterly payment and accrual basis.

The first quarterly dividend was the second quarter 2020 dividend payable in July 2020.

Similarly, the Company began paying accrued and unpaid dividends on Preferred Stock on a quarterly basis.

The monthly distributions for the first quarter of 2020 were paid at a daily rate equivalent to $ 1.44 per annum, per share of common stock.

Starting with the second quarter 2020 distribution, the 2020 quarterly distributions were paid at a quarterly rate of $ 0.275 per share of common stock (equivalent to $ 1.10 per annum).

Distribution payments are dependent on the availability of funds.

The board of directors may reduce the amount of distributions paid or suspend distribution payments at any time, and therefore, distribution payments are not assured.

Subject to the terms of the Preferred Stock, dividends on the Company’s Preferred Stock are generally paid on an as-converted basis with the common stock.

The Company distributed $ 45.7 million of common stock dividends during the year ended December 31, 2020, comprised of $ 36.8 million in cash and $ 8.9 million in shares of common stock issued under the DRIP.

The DRIP was temporarily suspended for the March 2020 dividend due to COVID-19 related valuation volatility, but was reactivated for the second quarter 2020 dividend.

The Company distributed $ 59.7 million of common stock dividends during the year ended December 31, 2019, comprised of $ 45.8 million in cash and $ 13.9 million in shares of common stock issued under the DRIP.

As of December 31, 2020 and December 31, 2019, the Company had declared but unpaid common stock distributions of $ 12.2 million and $ 5.4 million, respectively.

1 unchanged sentence

These amounts are included in Distributions payable on the Company’s consolidated balance sheets.

The Company distributed $59.7 million during the year ended December 31, 2019 , comprised of $45.8 million in cash and $13.9 million in shares of common stock issued under the DRIP.

The Company distributed $48.5 million during the year ended December 31, 2018 , comprised of $34.5 million in cash and $14.0 million in shares of common stock issued under the DRIP.

Share Repurchase Program

3 unchanged sentences

Repurchase requests made following the death or qualifying disability of a stockholder will not be subject to any minimum holding period.

On August 10, 2017, the Company's board of directors amended the SRP to provide that the repurchase price per share for requests will be equal to the lesser of (i) the Company’s most recent estimated per-share net asset value ("NAV"), as approved by the Company’s board of directors from time to time, and (ii) the Company’s book value per share, computed in accordance with GAAP, multiplied by a percentage equal to (i) 92.5% , if the person seeking repurchase has held his or her shares for a period greater than one year and less than two years;

The repurchase price per share for SRP repurchases is equal to the lesser of (i) the Company’s most recent estimated per-share net asset value ("NAV"), as approved by the Company’s board of directors from time to time, and (ii) the Company’s book value per share, computed in accordance with GAAP, multiplied by a percentage equal to (i) 92.5 %, if the person seeking repurchase has held his or her shares for a period greater than one year and less than two years;

(ii) 95 %, if the person seeking repurchase has held his or her shares for a period greater than two years and less than three years;

1 unchanged sentence

or (iv) 100 %, if the person seeking repurchase has held his or her shares for a period greater than four years or in the case of requests for death or disability.

The Company’s most recent estimated per-share NAV is $18.57 , as determined by the board of directors, as of September 30, 2019.

The Company’s estimated per-share NAV as of December 31, 2020, as determined by the board of directors, is $ 17.88 .

The Company’s GAAP book value per share as of December 31, 2020 is $ 17.94 .

BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020

Repurchase requests related to death or a qualifying disability must satisfy certain conditions, each of which are assessed by and at the sole discretion of the Company, including the following conditions.

8 unchanged sentences

Due to these limitations, the Company cannot guarantee that the Company will be able to accommodate all repurchase requests made during any fiscal semester or fiscal year.

However, a stockholder may withdraw its request at any time or ask that the Company honors the

BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2019

request when funds are available.

However, a stockholder may withdraw its request at any time or ask that the Company honors the request when funds are available.

Pending repurchase requests will be honored on a pro rata basis.

The Company will generally pay repurchase proceeds, less any applicable tax or other withholding required by law, by the 31st day following the end of the fiscal semester during which the repurchase request was made.

When a stockholder requests redemption and the redemption is approved, the Company will reclassify such obligation from equity to a liability based on the settlement value of the obligation.

Shares repurchased under the SRP will have the status of authorized but unissued shares.

The following table reflects the number of shares repurchased under the SRP cumulatively through December 31, 2020:

Number of Requests

Number of Shares Repurchased

Average Price per Share

Number of Requests Number of Shares Repurchased Average Price per Share

Cumulative as of December 31, 2019 5,878 3,542,267 $ 20.23

January 1 - January 31, 2020 (1)

February 1 - February 28, 2019

March 1 - March 31, 2019

1,170 373,135 18.56

February 1 - February 28, 2020 — — N/A

March 1 - March 31, 2020 — — N/A

April 1 - April 30, 2020 (1)

May 1 - May 31, 2019

June 1 - June 30, 2019

May 1 - May 31, 2020 — — N/A

June 1 - June 30, 2020 — — N/A

July 1 - July 31, 2020 (2)

August 1 - August 31, 2019

1,046 206,332 16.25

August 1 - August 31, 2020 — — N/A

September 1 - September 30, 2020 (2)

October 1 - October 31, 2019

November 1 - November 30, 2019

December 1 - December 31, 2019

October 1 - October 31, 2020 — — N/A

November 1 - November 30, 2020 — — N/A

December 1 - December 31, 2020 — — N/A

Cumulative as of December 31, 2020 8,094 4,121,734 $ 19.88

________________________

(1) Reflects shares repurchased in January 2019 pursuant to repurchase requests submitted for the fiscal semester ended December 31, 2018.

(2) Reflects shares repurchased in July 2019 pursuant to repurchase requests submitted for the fiscal semester ended June 30, 2019.

Pursuant to the terms of the SRP, the Board only authorized repurchases up to the amount of proceeds reinvested through our DRIP.

As a result, redemption requests for this semester in the amount of 1,934,369 shares were not fulfilled.

(1) Reflects shares repurchased pursuant to repurchase requests submitted for the second semester of 2019, including 11,306 shares which for administrative reasons were processed in April 2020.

Pursuant to the terms of the SRP, the Company is only authorized to repurchase up to the amount of proceeds reinvested through our DRIP during the applicable semester.

As a result, redemption requests in the amount of 1,986,803 shares were not fulfilled for the second semester of 2019.

(2) Reflects shares repurchased pursuant to repurchase requests submitted for the first semester of 2020, including 771 shares which for administrative reasons were processed in September 2020.

Pursuant to the terms of the SRP, the Company is only authorized to repurchase up to the amount of proceeds reinvested through our DRIP during the applicable semester.

As a result, redemption requests in the amount of 1,677,268 shares were not fulfilled for the first semester of 2020.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020

Note 10 - Commitments and Contingencies

1 unchanged sentence

As of December 31, 2020 and 2019, the Company had the below unfunded commitments to the Company's borrowers (dollars in thousands):

Funding Expiration

December 31, 2019

December 31, 2018

Funding Expiration December 31, 2020 December 31, 2019

2020 $ — $ 90,519

2021 59,692 100,861

2022 91,420 56,863

2023 69,880 8,637

2024 and beyond 7,700 5,450

$ 228,692 $ 262,330

The borrowers are required to meet or maintain certain metrics in order to qualify for the unfunded commitment amounts.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2019

Litigation and Regulatory Matters

In the ordinary course of business, the Company may become subject to litigation, claims and regulatory matters.

The Company has no knowledge of material legal or regulatory proceedings pending or known to be contemplated against the Company at this time.

The Company is not presently involved in any material litigation arising outside the ordinary course of business.

However, the Company is involved in routine litigation arising in the ordinary course of business, none of which the Company believes, individually or in the aggregate, will have a material impact on the Company’s financial condition, operating results or cash flows.

Note 11 - Related Party Transactions and Arrangements

Advisory Agreement Fees and Reimbursements

Pursuant to the Advisory Agreement, the Company makes or was required to make the following payments and reimbursements to the Advisor:

Pursuant to the Advisory Agreement, the Company is required to make the following payments and reimbursements to the Advisor:

• The Company reimburses the Advisor’s costs of providing services pursuant to the Advisory Agreement, except the salaries and benefits paid by the Advisor to the Company’s executive officers.

3 unchanged sentences

• The Company reimburses the Advisor for insourced expenses incurred by the Advisor on the Company's behalf related to selecting, evaluating, originating and acquiring investments in an amount up to 0.5 % of the principal amount funded by the Company to originate or acquire commercial mortgage loans and up to 0.5 % of the anticipated net equity funded by the Company to acquire real estate securities investments.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020

The table below shows the costs incurred due to arrangements with our Advisor and its affiliates during the years ended December 31, 2020, 2019 and 2018 and the associated payable as of December 31, 2020 and 2019 (dollars in thousands):

Year Ended December 31,

Payable as of December 31,

Acquisition fees and acquisition expenses (1)

Year Ended December 31, Payable as of December 31,

2020 2019 2018 2020 2019

Acquisition expenses (1)

696 900 452 — 225

Administrative services expenses 13,120 16,363 13,446 2,940 1,238

1 unchanged sentence

Other related party expenses (2)(3)

703 1,610 1,259 1,812 —

Total related party fees and reimbursements $ 29,697 $ 35,099 $ 25,456 $ 9,525 $ 4,789

________________________

(1) Total acquisition fees and expenses paid during the years ended December 31, 2019 , 2018 and 2017 were $8.4 million , $ 8.1 million and $ 10.2 million respectively, of which $7.5 million , $ 7.6 million and $ 6.0 million were capitalized within the commercial mortgage loans, held for investment line of the consolidated balance sheets for years ended December 31, 2019 , 2018 and 2017 .

(2) These are primarily related to reimbursable costs incurred related to the increase in loan origination activities.

These amounts are included in Other expenses in the Company's consolidated statements of operations.

(1) Total acquisition fees and expenses paid during the years ended December 31, 2020, 2019 and 2018 were $ 7.1 million, $ 8.4 million and $ 8.1 million respectively, of which $ 6.4 million, $ 7.5 million and $ 7.6 million were capitalized within the commercial mortgage loans, held for investment line of the consolidated balance sheets for the years ended December 31, 2020, 2019 and 2018.

(2) These are related to reimbursable costs incurred related to the increase in loan origination activities and are included in Other expenses in the Company's consolidated statements of operations.

(3) The related party payable includes $ 1.8 million of payments made by the Advisor to third party vendors on behalf of the Company.

The payables as of December 31, 2020 and 2019 in the table above are included in Due to affiliates on the Company's consolidated balance sheets.

Purchases of Common Stock and Preferred Stock

Refer to Note 9 - Stock Transactions for a description of the Company’s private placements.

Officers of the Company and other employees of the Advisor and its affiliates (“Manager Investors”), as well as members of the Company's board of directors, have acquired common stock and Series A preferred stock in these private placements on substantially the same terms applying to purchases by third party accredited investors unaffiliated with the Company or the Advisor.

The Manager Investors acquired an aggregate of $2.4 million of common stock in these private placements during the year ended December 31, 2019.

During the year ended December 31, 2019, each independent member of the Company's board of directors acquired 5,984 shares of common stock in these private placements for an aggregate purchase price of $0.4 million .

BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2019

Other Transactions

On February 22, 2018, the Company purchased commercial mortgage loans, held-for-sale from an entity that is an affiliate of our Advisor, for an aggregate purchase price of $ 27.8 million .

On February 22, 2018, the Company purchased commercial mortgage loans, held-for-sale from an entity that is an affiliate of the Company's Advisor, for an aggregate purchase price of $ 27.8 million.

The purchase of the commercial mortgage loans and the $ 27.8 million purchase price were approved by the Company’s board of directors.

On April 18, 2018, the Company sold $ 23.3 million of these commercial mortgage loans into a CMBS securitization.

The remaining $4.5 million of principal, with carrying value of $3.9 million , of these commercial mortgage loans are recorded in commercial mortgage loans, held-for-investment, on the consolidated balance sheet as of December 31, 2019 .

The remaining $ 4.5 million of these commercial mortgage loans, recorded as held for investment, were fully paid down during the year ended December 31, 2020.

SBL is an entity that also holds 14,950 of the Company’s outstanding shares of Series A Preferred Stock.

The facility has a maturity of February 10, 2023 and is secured by a pledge of equity interests in certain of the Company’s subsidiaries.

The Company incurred $ 0.2 million of interest expense on the lending agreement with SBL for the year ended December 31, 2020.

As of December 31, 2020 there was no outstanding balance under the lending agreement.

Note 12 - Share-Based Compensation

8 unchanged sentences

The fair value of the restricted share awards are expensed over the vesting period.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020

As of December 31, 2020, the Company had granted 44,876 restricted shares to its independent directors, of which 5,333 were forfeited and 27,823 have vested, leaving a balance of 11,720 unvested restricted shares.

11 unchanged sentences

The Company evaluates its hierarchy disclosures each quarter and depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2019

The Company has implemented valuation control processes to validate the fair value of the Company's financial instruments measured at fair value including those derived from pricing models.

2 unchanged sentences

Financial Instruments Measured at Fair Value on a Recurring Basis

CMBS is recorded in real estate securities, available for sale, measured at fair value on the consolidated balance sheets, are valued utilizing both observable and unobservable market inputs.

CMBS recorded in real estate securities, available for sale, measured at fair value on the consolidated balance sheets are valued utilizing both observable and unobservable market inputs.

These factors include projected future cash flows, ratings, subordination levels, vintage, remaining lives, credit issues, and recent trades of similar real estate securities.

Depending upon the significance of the fair value inputs used in determining these fair values, these real estate securities are classified in either Level II or Level III of the fair value hierarchy.

As of December 31, 2019 , the Company obtained third party pricing for determining the fair value of each CMBS investment, which resulted in a Level II classification.

As of December 31, 2018 , the Company classified the real estate securities, available for sale, measured at fair value as Level III.

As of December 31, 2020 and December 31, 2019, the Company obtained third party pricing for determining the fair value of each CMBS investment, resulting in a Level II classification.

Commercial mortgage loans held-for-sale, measured at fair value in the Company's TRS are initially recorded at transaction proceeds, which are considered to be the best initial estimate of fair value.

1 unchanged sentence

Fair value is determined using a discounted cash flow model that primarily considers changes in interest rates and credit spreads, weighted average life and current performance of the underlying collateral.

Commercial mortgage loans held-for-sale, measured at fair value that are originated in the last month of the reporting period are held and marked to the transaction proceeds.

The Company classified the commercial mortgage loans held-for-sale, measured at fair value as Level III.

Other real estate investments, measured at fair value on the consolidated balance sheets are valued using unobservable inputs.

The Company engaged the services of a third party independent valuation firm to determine fair value of certain investments, including preferred equity investments, held by the Company.

The Company classified the other real estate investments, measured at fair value as Level III.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020

The fair value for Treasury note futures is derived using market prices.

15 unchanged sentences

A review of the fair value hierarchy classification is conducted on a quarterly basis.

Changes in the type of inputs may result in a reclassification for certain assets.

Changes in the type of inputs may result in a reclassification for certain assets or liabilities.

The Company's policy with respect to transfers between levels of the fair value hierarchy is to recognize transfers into and out of each level as of the beginning of the reporting period.

There were six transfers out of Level III of the fair value hierarchy during the year ended December 31, 2019 .

There were no material transfers between levels within the fair value hierarchy during the years ended December 31, 2020 and December 31, 2019.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

2 unchanged sentences

The following table presents the Company's financial instruments carried at fair value on a recurring basis in the consolidated balance sheets by its level in the fair value hierarchy as of December 31, 2020 and December 31, 2019 (dollars in thousands):

December 31, 2019

December 31, 2020 Total Level I Level II Level III

Assets, at fair value

2 unchanged sentences

Other real estate investments, measured at fair value 2,522 — — 2,522

Credit default swaps

Interest rate swaps 25 — 25 —

Treasury note futures

Total assets, at fair value $ 241,332 $ — $ 171,161 $ 70,171

Liabilities at FV

Liabilities, at fair value

Credit default swaps $ 297 $ — $ 297 $ —

Treasury note futures 106 106 — —

Total liabilities, at fair value $ 403 $ 106 $ 297 $ —

3 unchanged sentences

Commercial mortgage loans, held-for-sale, measured at fair value 112,562 — — 112,562

Other real estate investments, measured at fair value 2,557 — — 2,557

Credit default swaps 59 — 59 —

Interest rate swaps 325 — 325 —

Treasury note futures 735 735 — —

Total assets, at fair value $ 502,554 $ 735 $ 386,700 $ 115,119

Liabilities, at fair value

Interest rate swaps

Treasury note futures

Credit default swaps $ 1,581 $ — $ 1,581 $ —

Total liabilities, at fair value $ 1,581 $ — $ 1,581 $ —

5 unchanged sentences

The following table summarizes the valuation method and significant unobservable inputs used for the Company’s financial instruments that are categorized within Level III of the fair value hierarchy as of December 31, 2020 and December 31, 2019 (dollars in thousands).

Asset Category

Valuation Methodologies

Unobservable Inputs (1)

Asset Category Fair Value Valuation Methodologies Unobservable Inputs (1)

Weighted Average (2)

December 31, 2020

Commercial mortgage loans, held-for-sale, measured at fair value

Discounted Cash Flow

Other real estate investments, measured at fair value

Discounted Cash Flow

11.4% - 13.4%

Commercial mortgage loans, held-for-sale, measured at fair value $ 67,649 Discounted Cash Flow Yield 16.6 % 15.6 % - 17.6 %

Other real estate investments, measured at fair value 2,522 Discounted Cash Flow Yield 13.2 % 12.2 % - 14.2 %

December 31, 2019

Commercial mortgage loans, held-for-sale, measured at fair value

Discounted Cash Flow

Real estate securities, available for sale, measured at fair value

Broker Quotes

Commercial mortgage loans, held-for-sale, measured at fair value $ 112,562 Discounted Cash Flow Yield 4.9 % 4.7 % - 5.2 %

Other real estate investments, measured at fair value 2,557 Broker Quotes Yield 12.4 % 11.4 % - 13.4 %

________________________

8 unchanged sentences

December 31, 2020

Commercial mortgage loans, held-for-sale, measured at fair value

Real estate securities, available for sale, measured at fair value

Other real estate investments, measured at fair value

Commercial mortgage loans, held-for-sale, measured at fair value Other real estate investments, measured at fair value

Beginning balance, January 1, 2020 $ 112,562 $ 2,557

1 unchanged sentence

Total realized and unrealized gain/(loss) included in earnings:

Realized gain (loss) on sale of real estate securities

Realized gain/(loss) on sale of commercial mortgage loan, held-for-sale 15,931 —

1 unchanged sentence

Net accretion — ( 3 )

Unrealized gain (loss) included in OCI (1)

Purchases (1)

Sales / paydowns (1)

Cash repayments / receipts

( 328,321 ) —

Transfers out of Level III (2)

December 31, 2019 balance

Ending Balance, December 31, 2020 $ 67,649 $ 2,522

December 31, 2019

Commercial mortgage loans, held-for-sale, measured at fair value

Real estate securities, available for sale, measured at fair value

Other real estate investments, measured at fair value

Commercial mortgage loans, held-for-sale, measured at fair value Other real estate investments, measured at fair value

Beginning balance, January 1, 2019 $ 76,863 $ —

5 unchanged sentences

Net accretion — —

Unrealized gains (losses) included in OCI (1)

Unrealized gain (loss) included in OCI — —

Purchases 1,015,677 2,510

Sales / paydowns ( 1,008,050 ) —

1 unchanged sentence

Transfers out of Level III (2)

December 31, 2018 balance

Ending Balance, December 31, 2019 $ 112,562 $ 2,557

________________________

(1) Unrealized losses included in Other comprehensive income ("OCI") are attributable to assets held at December 31, 2019 and December 31, 2018 .

(1) Excluded from Purchases and Sales/paydowns are $ 679.1 million and $ 682.0 million, respectively, of loans that collateralize a CMBS investment required to be consolidated in connection with the Company's retention of the B tranche during the year ended December 31, 2020.

Upon disposition of the B tranche during the year ended December 31, 2020, the Company recognized a gain of $ 2.8 million that is recorded in Realized gain/loss on sale of real estate securities on the consolidated statements of operations.

(2) Transfers in and transfers out include transfers between Commercial mortgage loans, held-for-sale and Commercial mortgage loans, held for investment.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

5 unchanged sentences

The fair values of the Company's commercial mortgage loans, held for investment and collateralized loan obligations, which are not reported at fair value on the consolidated balance sheets are reported below as of December 31, 2020 and 2019 (dollars in thousands):

Carrying Amount

Level Carrying Amount Fair Value

December 31, 2020

Commercial mortgage loans, held for investment (1)

Collateralized loan obligation

Mortgage note payable

Asset III $ 2,714,734 $ 2,724,039

Collateralized loan obligation Liability III 1,625,498 1,606,478

Mortgage note payable Liability III 29,167 29,167

Other financing and loan participation - commercial mortgage loans Liability III 31,379 31,379

December 31, 2019

Commercial mortgage loans, held for investment (1)

Collateralized loan obligation

Other financing and loan participation - commercial mortgage loans

Asset III $ 2,762,963 $ 2,784,650

Collateralized loan obligation Liability III 1,803,185 1,822,386

Mortgage note payable Liability III 29,167 29,167

________________________

(1) The carrying value is gross of $0.9 million and $4.8 million of allowance for loan losses as of December 31, 2019 and December 31, 2018 , respectively.

(1) The carrying value is gross of $ 20.9 million and $ 0.9 million of allowance for credit losses as of December 31, 2020 and December 31, 2019, respectively.

The fair value of the commercial mortgage loans, held for investment is estimated using a discounted cash flow analysis, based on the Advisor's experience with similar types of investments.

9 unchanged sentences

The following derivative instruments were outstanding as of December 31, 2020 and December 31, 2019 (dollars in thousands):

Contract type

Contract type Notional Assets

As of December 31, 2020

2 unchanged sentences

Treasury note futures 43,500 — 106

Total $ 122,017 $ 25 $ 403

As of December 31, 2019

2 unchanged sentences

Treasury note futures 74,000 735 —

Total $ 210,846 $ 1,119 $ 1,581

The following table indicates the net realized and unrealized gains and losses on derivatives, by primary underlying risk exposure, as included in loss on derivative instruments in the consolidated statements of operations for year ended December 31, 2020 and December 31, 2019:

Year Ended December 31, 2019

Year Ended December 31, 2018

Contract type

Year Ended December 31, 2020 Year Ended December 31, 2019

Contract type Unrealized

(Gain)/Loss Realized

(Gain)/Loss Unrealized

(Gain)/Loss Realized

Credit default swaps $ ( 143 ) $ 323 $ 456 $ 2,230

1 unchanged sentence

Treasury note futures 842 4,665 ( 1,798 ) 1,962

Options — 35 — 401

Total $ 995 $ 12,486 $ ( 1,722 ) $ 4,324

BENEFIT STREET PARTNERS REALTY TRUST, INC.

5 unchanged sentences

Gross Amounts Not Offset on the Balance Sheet

Gross Amounts of Recognized Assets

Assets Gross Amounts of Recognized Assets

Gross Amounts Offset on the Balance Sheet

1 unchanged sentence

Financial Instruments

Cash Collateral Pledged (1)

Cash Collateral (1)

December 31, 2020

3 unchanged sentences

Gross Amounts Not Offset on the Balance Sheet

Gross Amounts of Recognized Liabilities

Liabilities Gross Amounts of Recognized Liabilities

Gross Amounts Offset on the Balance Sheet

Net Amount of Liabilities Presented on the Balance Sheet

Net Amount of Assets Presented on the Balance Sheet

Financial Instruments

Cash Collateral Pledged (1)

Cash Collateral (1)

December 31, 2020

7 unchanged sentences

________________________

(1) These cash collateral amounts are recorded within the Restricted cash balance on the consolidated balance sheets.

(1) These cash collateral amounts are recorded within the Restricted cash and Accounts payable and accrued expenses balances on the consolidated balance sheets.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

8 unchanged sentences

The following table represents the Company's operations by segment for the years ended December 31, 2020, December 31, 2019 and December 31, 2018 (dollars in thousands):

December 31, 2019

Real Estate Debt and Other Real Estate

Real Estate Securities

Real Estate Owned

December 31, 2020 Total Real Estate Debt and Other Real Estate Real Estate Securities TRS Real Estate Owned

Interest income $ 179,872 $ 165,907 $ 10,854 $ 3,111 $ —

1 unchanged sentence

Interest expense 66,556 54,480 7,914 2,185 1,977

Net income 54,746 66,383 ( 7,207 ) ( 5,559 ) 1,129

Total assets as of December 31, 2020 3,189,761 2,866,790 175,088 105,364 42,519

1 unchanged sentence

Interest income $ 195,299 $ 181,434 $ 6,149 $ 7,716 $ —

Revenue from real estate owned 3,169 — — — 3,169

Interest expense 90,418 83,597 2,911 3,670 240

Net income 83,924 61,936 3,238 19,130 ( 380 )

Total assets as of December 31, 2019 3,540,620 2,964,233 388,170 131,193 57,024

2 unchanged sentences

Interest expense 70,000 65,521 770 3,709 —

Net income 52,825 50,041 ( 160 ) 2,944 —

Total assets as of December 31, 2018 2,606,078 2,492,440 26,474 87,164 —

For the purposes of the table above, any expenses not associated with a specific segment have been allocated to the business segments using a percentage derived by using the sum of commercial mortgage loans originated during the year as the denominator and commercial mortgage loans, net and commercial mortgage loans, held-for-sale, measured at fair value as numerator.

For the purposes of the table above, any expenses not associated with a specific segment have been allocated to the business segments using a percentage derived by using the sum of commercial mortgage loans originated during the year as the denominator and commercial mortgage loans, held for investment net of allowance and commercial mortgage loans, held-for-sale, measured at fair value as numerator.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020

Note 17 - Income Taxes

10 unchanged sentences

Total income tax expense for the year ended December 31, 2019 , December 31, 2018 and December 31, 2017 were $4.5 million , $0.1 million and $0.2 million , respectively.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2019

Total income tax expense (benefit) for the years ended December 31, 2020, December 31, 2019 and December 31, 2018 were $( 2.1 ) million, $ 4.5 million and $ 0.1 million, respectively.

The Company uses a more-likely-than-not threshold for recognition and derecognition of tax positions taken or to be taken in a tax return.

2 unchanged sentences

Components of the provision for income taxes consist of the following (dollars in thousands):

Years Ended December 31,

Year Ended December 31,

2020 2019 2018

Current expense/(benefit)

Federal $ ( 2,086 ) $ 4,076 $ 68

State and local 370 397 12

1 unchanged sentence

Deferred expense/(benefit)

Federal $ — $ 10 $ ( 1 )

State and local ( 346 ) — —

1 unchanged sentence

Provision for income tax expense/(benefit) $ ( 2,062 ) $ 4,483 $ 79

The tax characteristic of $1.44 distributions per common share declared during 2019 was $1.20 ordinary income and $0.24 return of capital.

The tax characteristics of the $ 1.30 distributions per common share declared during 2020 was $ 1.24 ordinary income and $ 0.06 capital gain.

Of the $ 1.24 of ordinary income, $ 1.24 represents the amount of the ordinary dividend that may be eligible for the 20% deduction applicable to qualified REIT dividends under Internal Revenue Code Section 199A.

The tax characteristics of $430.88 per share of Series A Preferred stock declared during 2019 was all ordinary income.

Of the $430.88 of ordinary income, $430.88 represents the amount of the ordinary dividend that may be eligible for the 20% deduction applicable to qualified REIT dividends under Section 199A.

The tax characteristics of $35.41 per share of Series C Preferred stock declared during 2019 was all ordinary income.

The tax characteristics of the $ 390.48 distributions per share of Series A Preferred Stock and Series C Preferred Stock declared during 2020 was $ 370.93 ordinary income and $ 19.55 capital gain.

Of the $ 370.93 of ordinary income, $ 370.93 represents the amount of the ordinary dividend that may be eligible for the 20% deduction applicable to qualified REIT dividends under Section 199A.

1 unchanged sentence

The tax characteristics of the $ 430.88 distributions per share of Series A Preferred Stock declared during 2019 was all ordinary income.

The tax characteristics of the $ 35.41 distributions per share of Series C Preferred Stock declared during 2019 was all ordinary income.

The Company utilizes the TRS to reduce the impact of the prohibited transaction tax and to avoid penalty for the holding of assets not qualifying as real estate assets for purposes of the REIT asset tests.

Any income associated with a TRS is fully taxable because the TRS is subject to federal and state income taxes as a domestic C corporation based upon its net income.

Enacted on December 22, 2017, the recently passed Tax Cuts and Jobs Act ("TCJA") made many significant changes to the U.S.

federal income tax laws applicable to businesses and their owners, including REITs and their stockholders, and may lessen the relative competitive advantage of operating as a REIT rather than as a C corporation.

Pursuant to this legislation, as of January 1, 2018, (1) the federal income tax rate applicable to corporations is reduced to 21% , (2) the highest marginal individual income tax rate is reduced to 37% (through taxable years ending in 2025), (3) the corporate alternative minimum tax is repealed, and (4) the backup withholding rate for U.S.

stockholders is reduced to 24% .

Generally, under the new interest expense limitation rules, the Company’s business interest expense deduction cannot exceed the sum of business interest income, 30% of adjusted taxable income (cannot be less than zero), and any floor plan financing interest expense for the taxable year.

The Company completed its assessment of the income tax provisions of the sections of the TCJA that were effective for the year ended December 31, 2019 , and there were no material amounts recorded.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted in response to the COVID-19 pandemic.

The CARES Act, among other things, permits NOL carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before 2021.

In addition, the CARES Act allows NOLs incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes.

The Company is currently evaluating the impact of the CARES Act, and expects to fully utilize the current year NOL under the NOL carryback provision of the CARES Act.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

3 unchanged sentences

The following is a summary of the unaudited quarterly results of operations for the years ended December 31, 2020, 2019 and 2018 (dollars in thousands, except per share data):

March 31 June 30 September 30 December 31

Net interest income $ 23,362 $ 28,106 $ 29,301 $ 32,547

Net income ( 7,400 ) 7,814 21,497 32,835

Net income applicable to common stock ( 11,915 ) 4,359 16,739 25,624

4 unchanged sentences

Net interest income $ 26,145 $ 22,356 $ 29,349 $ 27,031

Net income 19,890 14,526 25,913 23,595

Net income applicable to common stock 16,108 11,036 20,460 19,310

4 unchanged sentences

Net interest income $ 10,734 $ 19,738 $ 25,823 $ 25,993

Net income 5,296 12,102 19,000 16,427

Net income applicable to common stock 5,296 12,086 17,745 14,054

7 unchanged sentences

The Company has evaluated subsequent events through the filing of this Annual Report on Form 10-K.

Private Placements

Subsequent to December 31, 2019 , the Company sold an additional $10.9 million of common stock at $16.71 per share and $0.1 million of Series A Preferred Stock at $5,000 per share plus accrued dividends to accredited investors.

BENEFIT STREET PARTNERS REALTY TRUST, INC.

2 unchanged sentences

(Dollars in thousands)

Property Type

Carrying Amount

Maturity Date

Senior Debt 1

1 month LIBOR + 4.50%

Interest Only

Senior Debt 2

1 month LIBOR + 4.65%

Interest Only

Senior Debt 3

1 month LIBOR + 4.00%

Description Property Type Face Amount Carrying Amount Interest

Terms Maturity Date

Senior Debt 1 Industrial $ 33,655 $ 33,655 1 month LIBOR + 4.00 %

Interest Only 11/9/2021

Senior Debt 4

1 month LIBOR + 5.00%

Senior Debt 2 Mixed Use 12,839 12,839 1 month LIBOR + 5.00 %

Interest Only 4/9/2021

Senior Debt 5

1 month LIBOR + 4.45%

Senior Debt 3 Office 14,034 14,034 1 month LIBOR + 4.45 %

Interest Only 9/9/2021

Senior Debt 6

1 month LIBOR + 6.00%

Senior Debt 4 Office 8,391 8,391 1 month LIBOR + 6.00 %

Amortizing Balloon 10/9/2021

Senior Debt 7

1 month LIBOR + 3.35%

Senior Debt 5 Multifamily 37,812 37,812 1 month LIBOR + 3.35 %

Amortizing Balloon 1/9/2022

Senior Debt 8

1 month LIBOR + 4.15%

Senior Debt 6 Office 26,811 26,811 1 month LIBOR + 4.15 %

Amortizing Balloon 10/9/2021

Senior Debt 9

1 month LIBOR + 3.75%

Interest Only

Senior Debt 10

1 month LIBOR + 5.00%

Senior Debt 7 Hospitality 10,400 10,400 1 month LIBOR + 6.25 %

Interest Only 5/9/2022

Senior Debt 11

1 month LIBOR + 3.50%

Senior Debt 8 Hospitality 5,894 5,894 1 month LIBOR + 3.50 %

Amortizing Balloon 12/9/2021

Senior Debt 12

1 month LIBOR + 3.62%

Senior Debt 9 Hospitality 57,075 57,075 1 month LIBOR + 5.19 %

Interest Only 6/9/2019

Senior Debt 13

1 month LIBOR + 5.19%

Senior Debt 10 Multifamily 77,945 77,701 1 month LIBOR + 4.50 %

Interest Only 12/31/2021

Senior Debt 14

1 month LIBOR + 4.50%

Senior Debt 11 Hospitality 10,250 10,247 1 month LIBOR + 5.25 %

Interest Only 2/9/2021

Senior Debt 15

1 month LIBOR + 5.25%

Senior Debt 12 Hospitality 23,000 22,998 1 month LIBOR + 6.00 %

Interest Only 1/9/2021

Senior Debt 16

1 month LIBOR + 4.41%

Senior Debt 13 Office 23,726 23,726 1 month LIBOR + 5.15 %

Interest Only 2/9/2021

Senior Debt 17

1 month LIBOR + 3.60%

Senior Debt 14 Multifamily 41,826 41,811 1 month LIBOR + 3.70 %

Interest Only 3/9/2021

Senior Debt 18

1 month LIBOR + 3.30%

Senior Debt 15 Hospitality 28,272 28,255 1 month LIBOR + 4.00 %

Interest Only 4/9/2021

Senior Debt 19

1 month LIBOR + 4.65%

Senior Debt 16 Hospitality 22,700 22,688 1 month LIBOR + 4.40 %

Interest Only 4/9/2021

Senior Debt 20

1 month LIBOR + 4.00%

Senior Debt 17 Multifamily 35,886 35,886 1 month LIBOR + 3.00 %

Interest Only 5/9/2021

Senior Debt 21

1 month LIBOR + 3.70%

Senior Debt 18 Self Storage 3,851 3,849 1 month LIBOR + 4.05 %

Interest Only 5/9/2021

Senior Debt 22

1 month LIBOR + 4.25%

Senior Debt 19 Self Storage 6,496 6,492 1 month LIBOR + 4.05 %

Interest Only 5/9/2021

Senior Debt 23

1 month LIBOR + 3.70%

Senior Debt 20 Self Storage 7,606 7,600 1 month LIBOR + 4.05 %

Interest Only 5/9/2021

Senior Debt 24

1 month LIBOR + 4.95%

Senior Debt 21 Self Storage 2,400 2,398 1 month LIBOR + 4.05 %

Interest Only 6/9/2021

Senior Debt 25

1 month LIBOR + 4.00%

Senior Debt 22 Self Storage 6,310 6,305 1 month LIBOR + 5.05 %

Interest Only 6/9/2021

Senior Debt 26

1 month LIBOR + 4.40%

Senior Debt 23 Hospitality 22,355 22,332 1 month LIBOR + 3.50 %

Interest Only 3/9/2023

Senior Debt 27

1 month LIBOR + 3.00%

Senior Debt 24 Mixed Use 59,451 59,451 1 month LIBOR + 4.87 %

Interest Only 7/9/2021

Senior Debt 28

1 month LIBOR + 4.05%

Senior Debt 25 Office 21,100 21,100 1 month LIBOR + 3.75 %

Interest Only 9/9/2021

Senior Debt 29

1 month LIBOR + 4.05%

Senior Debt 26 Self Storage 6,299 6,299 1 month LIBOR + 6.00 %

Interest Only 9/9/2021

Senior Debt 30

1 month LIBOR + 5.05%

Senior Debt 27 Office 16,342 16,342 1 month LIBOR + 3.40 %

Amortizing Balloon 9/9/2021

Senior Debt 28 Retail 29,500 29,426 6.25 % Interest Only 9/9/2023

Senior Debt 29 Self Storage 11,966 11,966 1 month LIBOR + 5.50 %

Interest Only 10/9/2021

Senior Debt 31

1 month LIBOR + 3.50%

Senior Debt 30 Multifamily 16,172 16,172 1 month LIBOR + 3.15 %

Interest Only 11/9/2021

Senior Debt 32

1 month LIBOR + 4.05%

Senior Debt 31 Multifamily 22,417 22,417 1 month LIBOR + 3.40 %

Interest Only 11/9/2021

Senior Debt 33

1 month LIBOR + 5.05%

Senior Debt 32 Multifamily 29,868 29,868 1 month LIBOR + 3.35 %

Interest Only 11/9/2021

Senior Debt 34

1 month LIBOR + 3.15%

Senior Debt 33 Land 16,400 16,400 1 month LIBOR + 6.00 %

Interest Only 12/11/2021

Senior Debt 35

1 month LIBOR + 3.75%

Senior Debt 34 Hospitality 8,523 8,507 1 month LIBOR + 4.80 %

Amortizing Balloon 1/9/2022

Senior Debt 35 Industrial 14,160 14,159 1 month LIBOR + 3.95 %

Interest Only 1/9/2021

Senior Debt 36

1 month LIBOR + 3.75%

Senior Debt 36 Multifamily 48,500 48,498 1 month LIBOR + 3.75 %

Interest Only 1/9/2021

Senior Debt 37

1 month LIBOR + 3.95%

Senior Debt 37 Multifamily 23,295 23,196 1 month LIBOR + 5.70 %

Interest Only 8/9/2021

Senior Debt 38

1 month LIBOR + 4.00%

Senior Debt 38 Office 7,200 7,198 1 month LIBOR + 3.90 %

Interest Only 2/9/2021

Senior Debt 39

1 month LIBOR + 4.50%

Senior Debt 39 Manufactured Housing 8,893 8,858 1 month LIBOR + 4.40 %

Interest Only 3/9/2022

Senior Debt 40

1 month LIBOR + 4.87%

Senior Debt 40 Hospitality 14,000 13,985 1 month LIBOR + 4.47 %

Interest Only 4/9/2021

Property Type

Carrying Amount

Maturity Date

Senior Debt 41

1 month LIBOR + 3.50%

Senior Debt 41 Retail 14,250 14,260 1 month LIBOR + 3.95 %

Interest Only 4/9/2021

Senior Debt 42

1 month LIBOR + 3.30%

Senior Debt 42 Hospitality 21,000 20,981 1 month LIBOR + 4.14 %

Interest Only 5/9/2021

Senior Debt 43

1 month LIBOR + 3.75%

Description Property Type Face Amount Carrying Amount Interest

Terms Maturity Date

Senior Debt 43 Multifamily 24,711 24,669 1 month LIBOR + 3.10 %

Interest Only 5/9/2022

Senior Debt 44

1 month LIBOR + 4.23%

Senior Debt 44 Multifamily 37,643 37,581 1 month LIBOR + 3.10 %

Interest Only 5/9/2022

Senior Debt 45

1 month LIBOR + 6.00%

Senior Debt 45 Office 42,631 42,519 1 month LIBOR + 3.50 %

Interest Only 5/9/2022

Senior Debt 46

1 month LIBOR + 4.00%

Senior Debt 46 Retail 8,500 8,500 1 month LIBOR + 7.50 %

Interest Only 12/9/2021

Senior Debt 47

1 month LIBOR + 3.10%

Senior Debt 47 Hospitality 10,580 10,547 1 month LIBOR + 4.50 %

Interest Only 6/9/2022

Senior Debt 48

1 month LIBOR + 3.40%

Amortizing Balloon

Senior Debt 49

Senior Debt 48 Multifamily 18,100 18,097 1 month LIBOR + 3.40 %

Interest Only 6/9/2021

Senior Debt 50

1 month LIBOR + 3.50%

Senior Debt 49 Hospitality 19,900 19,850 1 month LIBOR + 4.15 %

Interest Only 6/9/2022

Senior Debt 51

1 month LIBOR + 5.50%

Senior Debt 50 Multifamily 18,656 18,604 1 month LIBOR + 3.10 %

Interest Only 6/9/2022

Senior Debt 52

1 month LIBOR + 3.74%

Senior Debt 51 Office 34,400 34,232 1 month LIBOR + 3.90 %

Interest Only 6/9/2022

Senior Debt 53

1 month LIBOR + 3.15%

Senior Debt 52 Hospitality 20,930 20,852 1 month LIBOR + 3.75 %

Interest Only 8/9/2022

Senior Debt 54

1 month LIBOR + 3.40%

Senior Debt 53 Hospitality 15,500 15,452 1 month LIBOR + 4.00 %

Interest Only 10/9/2022

Senior Debt 55

1 month LIBOR + 3.35%

Senior Debt 54 Hospitality 5,250 5,242 1 month LIBOR + 4.25 %

Interest Only 7/9/2021

Senior Debt 56

1 month LIBOR + 3.10%

Senior Debt 55 Hospitality 12,750 12,708 1 month LIBOR + 4.45 %

Interest Only 8/9/2022

Senior Debt 57

1 month LIBOR + 4.00%

Senior Debt 56 Hospitality 9,545 9,525 1 month LIBOR + 4.50 %

Interest Only 8/9/2021

Senior Debt 58

1 month LIBOR + 3.45%

Senior Debt 57 Retail 9,400 9,371 1 month LIBOR + 4.20 %

Interest Only 9/9/2022

Senior Debt 59

1 month LIBOR + 3.45%

Senior Debt 58 Manufactured Housing 12,200 12,162 1 month LIBOR + 3.65 %

Interest Only 10/9/2022

Senior Debt 60

1 month LIBOR + 6.00%

Senior Debt 59 Manufactured Housing 24,100 24,029 1 month LIBOR + 3.65 %

Interest Only 9/9/2022

Senior Debt 61

1 month LIBOR + 4.80%

Senior Debt 60 Multifamily 23,149 23,103 1 month LIBOR + 2.65 %

Interest Only 9/9/2021

Senior Debt 61 Office 29,750 29,681 1 month LIBOR + 3.35 %

Interest Only 9/9/2022

Senior Debt 62 Hospitality 34,484 34,407 1 month LIBOR + 3.99 %

Amortizing Balloon 11/9/2021

Senior Debt 62

1 month LIBOR + 4.75%

Senior Debt 63 Multifamily 12,839 12,787 1 month LIBOR + 2.65 %

Interest Only 11/9/2022

Senior Debt 63

1 month LIBOR + 3.95%

Senior Debt 64 Multifamily 37,021 36,924 1 month LIBOR + 2.75 %

Interest Only 11/9/2023

Senior Debt 64

1 month LIBOR + 2.99%

Senior Debt 65 Industrial 53,500 53,297 1 month LIBOR + 3.75 %

Interest Only 12/9/2021

Senior Debt 65

1 month LIBOR + 3.75%

Senior Debt 66 Office 21,825 21,728 1 month LIBOR + 3.50 %

Interest Only 12/9/2022

Senior Debt 66

1 month LIBOR + 3.25%

Senior Debt 67 Hospitality 7,100 7,076 1 month LIBOR + 4.00 %

Interest Only 12/9/2022

Senior Debt 67

1 month LIBOR + 5.20%

Senior Debt 68 Industrial 22,230 22,133 1 month LIBOR + 3.55 %

Interest Only 12/9/2023

Senior Debt 68

1 month LIBOR + 3.90%

Senior Debt 69 Multifamily 21,083 21,017 1 month LIBOR + 2.75 %

Interest Only 12/9/2022

Senior Debt 69

1 month LIBOR + 4.95%

Senior Debt 70 Multifamily 27,087 26,989 1 month LIBOR + 3.15 %

Interest Only 12/9/2022

Senior Debt 70

Manufactured Housing

1 month LIBOR + 3.90%

Senior Debt 71 Multifamily 26,130 26,069 1 month LIBOR + 2.70 %

Interest Only 12/9/2022

Senior Debt 71

1 month LIBOR + 5.00%

Senior Debt 72 Multifamily 7,150 7,119 1 month LIBOR + 4.75 %

Interest Only 12/9/2021

Senior Debt 72

1 month LIBOR + 3.44%

Senior Debt 73 Multifamily 25,000 24,935 1 month LIBOR + 3.00 %

Interest Only 1/9/2022

Senior Debt 73

1 month LIBOR + 3.95%

Senior Debt 74 Office 25,500 25,351 1 month LIBOR + 4.35 %

Interest Only 1/9/2024

Senior Debt 74

1 month LIBOR + 4.14%

Senior Debt 75 Multifamily 14,181 14,141 1 month LIBOR + 3.10 %

Interest Only 2/9/2023

Senior Debt 75

1 month LIBOR + 4.25%

Senior Debt 76 Office 48,276 47,862 1 month LIBOR + 3.70 %

Interest Only 2/9/2023

Senior Debt 76

1 month LIBOR + 3.10%

Senior Debt 77 Industrial 25,350 25,315 1 month LIBOR + 3.50 %

Interest Only 5/9/2021

Senior Debt 77

1 month LIBOR + 3.10%

Senior Debt 78 Multifamily 11,800 11,757 1 month LIBOR + 3.15 %

Interest Only 8/9/2022

Senior Debt 78

1 month LIBOR + 4.00%

Senior Debt 79 Office 27,598 27,491 1 month LIBOR + 2.70 %

Interest Only 2/9/2023

Senior Debt 79

1 month LIBOR + 3.50%

Senior Debt 80 Multifamily 75,100 75,260 1 month LIBOR + 4.35 %

Interest Only 8/9/2021

Senior Debt 80

1 month LIBOR + 5.00%

Senior Debt 81 Manufactured Housing 1,385 1,385 5.50 % Interest Only 5/9/2025

Senior Debt 82 Industrial 14,650 14,606 1 month LIBOR + 6.00 %

Interest Only 11/9/2021

Senior Debt 81

1 month LIBOR + 4.50%

Senior Debt 83 Multifamily 7,149 7,123 1 month LIBOR + 4.75 %

Interest Only 5/9/2022

Senior Debt 82

1 month LIBOR + 3.40%

Senior Debt 84 Multifamily 6,764 6,731 1 month LIBOR + 4.90 %

Interest Only 7/9/2023

Senior Debt 83

1 month LIBOR + 3.40%

Senior Debt 85 Multifamily 46,000 45,797 1 month LIBOR + 4.75 %

Interest Only 7/9/2023

Senior Debt 84

1 month LIBOR + 3.48%

Senior Debt 86 Multifamily 5,550 5,530 1 month LIBOR + 6.87 %

Interest Only 1/9/2022

Senior Debt 85

1 month LIBOR + 3.10%

Senior Debt 87 Industrial 16,400 16,312 1 month LIBOR + 6.25 %

Interest Only 7/9/2023

Property Type

Carrying Amount

Maturity Date

Senior Debt 86

1 month LIBOR + 3.77%

Description Property Type Face Amount Carrying Amount Interest

Terms Maturity Date

Senior Debt 88 Multifamily 14,505 14,425 1 month LIBOR + 4.75 %

Interest Only 7/9/2023

Senior Debt 87

1 month LIBOR + 3.75%

Senior Debt 89 Multifamily 23,438 23,337 1 month LIBOR + 4.65 %

Interest Only 7/9/2023

Senior Debt 88

1 month LIBOR + 4.00%

Senior Debt 90 Multifamily 4,300 4,281 1 month LIBOR + 5.50 %

Interest Only 2/9/2023

Senior Debt 89

1 month LIBOR + 4.25%

Senior Debt 91 Manufactured Housing 7,680 7,645 1 month LIBOR + 4.50 %

Interest Only 8/9/2023

Senior Debt 90

1 month LIBOR + 4.45%

Senior Debt 92 Mixed Use 30,465 30,246 1 month LIBOR + 5.15 %

Interest Only 8/9/2023

Senior Debt 91

1 month LIBOR + 3.50%

Senior Debt 93 Multifamily 3,140 3,126 1 month LIBOR + 6.25 %

Interest Only 8/9/2022

Senior Debt 92

1 month LIBOR + 4.50%

Senior Debt 94 Industrial 24,657 24,376 1 month LIBOR + 4.60 %

Interest Only 9/6/2022

Senior Debt 93

1 month LIBOR + 2.80%

Senior Debt 95 Multifamily — — 1 month LIBOR + 5.25 %

Interest Only 7/1/2022

Senior Debt 94

1 month LIBOR + 4.20%

Senior Debt 96 Hospitality 27,000 26,878 1 month LIBOR + 6.50 %

Interest Only 9/9/2023

Senior Debt 95

Manufactured Housing

1 month LIBOR + 3.65%

Senior Debt 97 Multifamily 2,465 2,453 1 month LIBOR + 5.75 %

Interest Only 9/9/2022

Senior Debt 96

Manufactured Housing

1 month LIBOR + 3.65%

Senior Debt 98 Multifamily 50,000 49,789 1 month LIBOR + 6.69 %

Interest Only 9/9/2022

Senior Debt 97

Amortizing Balloon

Senior Debt 98

1 month LIBOR + 2.65%

Senior Debt 99 Self Storage 29,895 29,759 1 month LIBOR + 5.00 %

Interest Only 9/9/2023

Senior Debt 99

1 month LIBOR + 3.35%

Senior Debt 100 Multifamily 11,622 11,545 1 month LIBOR + 4.75 %

Interest Only 9/9/2022

Senior Debt 100

1 month LIBOR + 3.99%

Amortizing Balloon

Senior Debt 101

1 month LIBOR + 2.65%

Senior Debt 101 Manufactured Housing 3,400 3,384 1 month LIBOR + 5.00 %

Interest Only 9/9/2022

Senior Debt 102

1 month LIBOR + 2.75%

Senior Debt 102 Multifamily 27,550 27,431 1 month LIBOR + 5.75 %

Interest Only 9/9/2022

Senior Debt 103

1 month LIBOR + 3.75%

Senior Debt 103 Multifamily 76,000 75,649 1 month LIBOR + 4.10 %

Interest Only 10/9/2023

Senior Debt 104

1 month LIBOR + 3.50%

Senior Debt 104 Multifamily 58,000 57,732 1 month LIBOR + 5.25 %

Interest Only 10/9/2023

Senior Debt 105

1 month LIBOR + 4.00%

Senior Debt 105 Manufactured Housing 5,020 4,996 1 month LIBOR + 5.25 %

Interest Only 10/9/2023

Senior Debt 106

1 month LIBOR + 3.55%

Senior Debt 106 Office 19,003 18,909 1 month LIBOR + 4.50 %

Interest Only 10/9/2023

Senior Debt 107

1 month LIBOR + 2.75%

Senior Debt 107 Office 69,675 69,339 5.15 % Interest Only 10/9/2025

Senior Debt 108 Office 30,900 30,670 1 month LIBOR + 5.20 %

Interest Only 10/9/2023

Senior Debt 108

1 month LIBOR + 3.75%

Senior Debt 109 Multifamily 10,945 10,895 1 month LIBOR + 7.04 %

Interest Only 5/9/2022

Senior Debt 109

1 month LIBOR + 3.15%

Senior Debt 110 Self Storage 11,600 11,546 1 month LIBOR + 4.76 %

Interest Only 11/9/2022

Senior Debt 110

1 month LIBOR + 5.25%

Senior Debt 111 Industrial 24,552 24,426 1 month LIBOR + 4.35 %

Interest Only 11/9/2022

Senior Debt 111

1 month LIBOR + 2.70%

Senior Debt 112 Manufactured Housing 5,000 4,929 1 month LIBOR + 5.90 %

Interest Only 5/9/2023

Senior Debt 112

1 month LIBOR + 4.75%

Senior Debt 113 Office 12,750 12,682 1 month LIBOR + 5.00 %

Interest Only 11/9/2023

Senior Debt 113

1 month LIBOR + 3.00%

Senior Debt 114 Multifamily 40,937 40,682 1 month LIBOR + 4.35 %

Interest Only 11/9/2023

Senior Debt 114

1 month LIBOR + 2.80%

Senior Debt 115 Multifamily 36,200 35,997 1 month LIBOR + 4.45 %

Interest Only 11/9/2023

Senior Debt 115

1 month LIBOR + 5.50%

Senior Debt 116 Multifamily 8,250 8,200 1 month LIBOR + 5.50 %

Interest Only 11/9/2023

Senior Debt 116

Amortizing Balloon

Mezzanine Loan 1

Senior Debt 117 Retail 11,963 11,833 1 month LIBOR + 4.87 %

Interest Only 5/9/2022

Mezzanine Loan 2

Amortizing Balloon

Mezzanine Loan 3

1 month LIBOR + 8.01%

Senior Debt 118 Manufactured Housing 3,585 3,567 1 month LIBOR + 5.40 %

Interest Only 12/9/2022

Mezzanine Loan 4

Senior Debt 119 Multifamily 5,730 5,701 1 month LIBOR + 5.00 %

Interest Only 6/9/2023

Mezzanine Loan 5

Senior Debt 120 Multifamily 18,800 18,613 1 month LIBOR + 4.00 %

Interest Only 12/9/2024

Mezzanine Loan 6

Senior Debt 121 Industrial 14,250 14,160 1 month LIBOR + 4.50 %

Interest Only 12/9/2023

Senior Debt 122 Office 11,550 11,479 1 month LIBOR + 5.50 %

Interest Only 1/9/2024

Senior Debt 123 Multifamily 21,000 20,884 1 month LIBOR + 4.60 %

Interest Only 1/9/2024

Senior Debt 124 Office 26,000 25,869 1 month LIBOR + 5.00 %

Interest Only 1/9/2023

Senior Debt 125 Hospitality 17,401 17,243 5.75 % Amortizing Balloon 10/6/2021

Mezzanine Loan 1 Multifamily 3,480 3,488 9.50 % Interest Only 7/1/2024

Mezzanine Loan 2 Retail 3,500 3,500 10.00 % Interest Only 2/6/2029

Mezzanine Loan 3 Multifamily 6,500 6,473 1 month LIBOR + 10.25 %

Interest Only 9/9/2022

Mezzanine Loan 4 Retail 1,438 1,444 1 month LIBOR + 10.75 %

Interest Only 5/9/2022

Mezzanine Loan 5 Multifamily 1,000 1,005 11.00 % Interest Only 11/6/2028

$ 2,722,863 $ 2,714,734

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.

What changed 10-K

Item 9A. Controls and Procedures