Asset Management Weekly Update, August 23-29, 2020
BY Dave Wilson, Director of Asset Management 31, AUG 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, August 23-29, 2020. You may view activity from the previous weeks by clicking the links below.
August 16-22, 2020
August 9-15, 2020
August 2-8, 2020
July 26 - August 1, 2020
July 19-25, 2020
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 - August 23-29
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 6 loans were repaid. 1 of these loans proceeded according to schedule, repaying on time and in full with the contract interest rate. 5 loans last week were special situation loans, the details of which are below.
1622 North Palmway - Repaid Via Workout Agreement
The loan was in maturity default because the borrower failed to repay on time. The property was under contract on August 1, but did not close until the end of the month. The borrower was provided with a 90 day extension in case the property did not close by the end of the month, and the loan was repaid under the terms of that workout agreement.
8230 South Morgan St - Repaid Out Of Default
The loan was in maturity default because the borrower failed to repay on time. The property was completed and listed on the market before the maturity date; however, because of COVID-19 the contract fell through a couple of times. The borrower had to lower the listing price and list the property on the market again in order to sell the property quickly. The borrower was able to sell the property and repay GROUNDFLOOR.
3559 Peoria Rd - Repaid Via Workout Agreement
The loan was in maturity default because the borrower failed to repay on time. The borrower was facing delays in completing the property before the maturity date due to the COVID-19 pandemic. The borrower was in the process of refinancing this loan to repay GROUNDFLOOR. This refinancing process took longer than expected due to COVID-19, so we granted an extension. The loan was repaid under the terms of this workout agreement.
1381 Sylvan Rd SW - Repaid Via Workout Agreement
The loan was in maturity default because the borrower was unable to repay GROUNDFLOOR on time. The borrower was facing delays completing the property due to COVID-19. The borrower was provided with a 90 day extension so the property could be completed. The loan was repaid under the terms of this workout agreement.
406 Harvard Blvd - Repaid Via Workout Agreement
The loan was in maturity default because the borrower was unable to repay GROUNDFLOOR on time. The borrower was facing delays completing the project due to COVID-19. The borrower was granted a 90 day extension to provide adequate time to sell the property. The loan was repaid under the terms of this workout agreement.
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 proceeded with foreclosure actions on the following properties last week:
Real Estate Owned (REO) Activity:
We did not take possession of any properties last week.
We did not go under contract to sell any properties last week.
We sold the following real estate owned properties last week: