Asset Management Weekly Update, September 13-19, 2020

BYJoey Wilson 21, SEP 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, September 13-19, 2020. You may view activity from the previous weeks by clicking the links below. 

September 6-12, 2020
August 30 - September 5, 2020
August 23-29, 2020
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:

Total Principal and Interest Repaid Chart, 9.13-19

Total Principal and Interest Repaid Table, 9.13-19

 

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. 

Aggregated Performance Metrics Table, 9.13-19
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 - September 13-19


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):

Screen Shot 2020-09-21 at 2.15.40 PM

*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:

2609-2615 E Tioga St
1822 Latona St
1715 Watercrest Cir (Loan #1 and Loan #2)
309 South Sycamore St
1124 Cedarhurst Dr (Loan #1 and Loan #2)
906 Huntington Dr

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 1 loans were repaid. 5 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.

2609-2615 E Tioga St - Repaid Via Workout Agreement

The loan was in maturity default because the borrower failed to repay the loan on time. The borrower was facing delays completing the property due to COVID-19. GROUNDFLOOR provided a loan leniency in the form of a 90 day extension to the borrower, and the loan was repaid under the terms of that workout agreement.

1822 Latona St - Repaid Via Workout Agreement

The loan was in maturity default because the borrower failed to repay the loan on time. The borrower was facing delays listing the property on the market due to COVID-19. GROUNDFLOOR provided a loan leniency in form of a 90 day extension to the borrower, and the loan was repaid under the terms of that workout agreement.

1715 Watercrest Cir - Repaid Via Workout Agreement

This loan was structured into a first position and a second position loan (please see our Split Loans blog post for more information about this loan structure). The loan was in maturity default because the borrower failed to repay the loan on time. The property was completed and listed on the market in January. At the end of January, the borrower advised that the property had been vandalized. GROUNDFLOOR then initiated a workout agreement with the borrower and part of that workout agreement was to suspend the contract interest for a period of 120 days. The loan was repaid under the terms of this workout agreement.

309 South Sycamore St - Repaid Via Workout Agreement

The loan was in maturity default because the borrower failed to repay the loan on time. The borrower was facing delays completing the property due to COVID-19. GROUNDFLOOR provided loan leniency in the form of a 90 day extension to the borrower, and the loan was repaid under the terms of that workout agreement.

906 Huntington Dr - Repaid Out Of Default

The loan was in maturity default because the borrower failed to repay the loan on time. The property was completed and listed on the market but the borrower was not getting enough response to the showings. GROUNDFLOOR issued a Notice of Default to the borrower because the borrower failed to comply with Asset Management policies.

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. 

Loan Activity:

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 properties last week.

We did not go under contract to sell any properties last week.

We did not sell any real estate owned properties last week.