Asset Management Weekly Update, July 19-25, 2020
BY Dave Wilson, Director of Asset Management 27, JUL 2020
As the financial and real estate markets continue to experience upheaval due to the COVID-19 pandemic, we understand that some GROUNDFLOOR investors may become more concerned than usual with the status of their investments.
We recently published an extensive stress test analysis of our entire outstanding portfolio to understand what potential effects a coronavirus-related recession could have on our investors’ portfolios. While this analysis is useful to help inform our customers about how GROUNDFLOOR investments could respond to changing market conditions, we also feel it is important to share how our loans are actually performing in real time.
To that end, as part of our continued efforts to be highly accountable to our investors and provide ongoing transparency, we are pleased to begin publishing weekly updates of loan repayments and asset management activities. This latest installment looks at activity from last week, July 19-25, 2020. You may view activity from the previous weeks by clicking the links below.
July 12-18, 2020
July 5-11, 2020
June 28 - July 4, 2020
June 21-27, 2020
June 14-20, 2020
June 7-13, 2020
May 31-June 6, 2020
May 24-30, 2020
May 17-23, 2020
May 10-16, 2020
Principal and Interest Repaid Over The Past Four Weeks
First, let’s take a look at the total principal and interest repayments disbursed to investors over the past four weeks:
Aggregated Performance Metrics
Next, let’s take a deeper dive into repayment activity over the past weeks to get a better picture of how our recently repaid loans have been performing. We examine the metrics of loans repaid within the last four weeks, loans repaid since the start of Q2 (which also coincides with the general onset of economic impacts in the U.S. of the COVID-19 pandemic), and loans repaid year to date.
It’s important to underscore that this table showcases the performance of loans that were repaid during the delineated periods, not the performance of loans originated during these timeframes.
Last Week’s Repayments - July 19-25
This table presents loans that were repaid within the previous week (Sunday-Saturday), with details on the status, actual vs. expected term, actual vs. expected rate, and the exit valuation (sales price or appraised value at time of refinancing):
*NOTE: Actual rate is not inclusive of any promotions. Individual repayments are dependent on how long your principal is active in a given loan.
**NOTE: The borrower did not disclose the source of repayment proceeds.
Key To Loan Status Column:
Current - loan remained current throughout the term and repaid with full principal (plus interest)
Default - loan was resolved while in default
Workout - a workout plan was put into effect and the loan was resolved under the terms of the workout agreement
REO - GROUNDFLOOR assumed title to the property (either through foreclosure or deed in lieu) and sold the property.
Links to the loan detail pages for the above loans:
Special Situations Repaid Last Week
Next, we provide a weekly overview of special situation loans we resolved in the prior week.
Last week, a total of 9 loans were repaid. 7 of these loans proceeded according to schedule, repaying on time and in full with the contract interest rate. 2 loans last week were special situation loans, the details of which are below.
266 Wadley St NW - Repaid Out Of Default
The borrower was unable to complete the project by maturity. GROUNDFLOOR issued a notice of default and began foreclosure proceedings on the property. The property was only partially completed upon foreclosure and was in the early stages of framing, with no rough plumbing or electrical; as such, it was sold "as is" on July 8th, 2020 for $60,000. After adding the remaining escrow balance and subtracting foreclosure costs and fees, the net recovery on this property was $78,787.47. Impacted investors may view a more detailed breakdown of the recovery in our recent email communication.
2728 McAfee Rd - Repaid Via Workout Agreement
The borrower was unable to repay the loan by the maturity date, leading to a maturity default. A 90-day forbearance was granted. The property was sold on July 20th, 2020.
Special Situations Activity Last Week
Finally, our asset management team moved forward with the following special situation loans last week (see link to each individual loan page for detailed history of updates). As a reminder, all performing loans are monitored for repayment status starting at 120 days prior to maturity.
We have entered into a workout agreement on the following loans:We did not proceed with foreclosure actions on any properties last week.
Real Estate Owned (REO) Activity:
We did not take possession of any new properties last week.
We went under contract to sell the following properties last week:
We sold the following real estate owned properties last week: