The non-traded REIT is repositioning its holdings through foreclosure sales and new originations as it pursues a future liquidity event for investors.

March 16, 2026

InPoint Commercial Real Estate Income, a non-traded REIT based in Oak Brook, Illinois, reported a net loss of $1.6 million for the fiscal year ended December 31, 2025, a sharp reversal from net income of $12.7 million in 2024. After accounting for preferred stock dividends, the net loss attributable to common stockholders reached $7.6 million, or $0.75 per share.

The Maryland-based company, which holds a diversified portfolio of commercial real estate debt investments primarily consisting of floating-rate first mortgage loans, saw its total loan portfolio decline significantly over the year. As of year-end, commercial mortgage loans held for investment stood at $347.9 million, down from $549.2 million a year earlier — a reduction of more than $200 million driven by loan repayments, a loan sale, foreclosures, and a write-off.

A Year Without New Originations

InPoint did not originate any new loans during 2025, instead focusing on preserving liquidity as several loans approached maturity. The company funded $2.0 million in advances on existing loans while receiving $99.4 million in principal repayments. It also sold a $47.5 million loan secured by a Houston office property, recognizing a loss of $8.4 million on the transaction.

In a notable development, the company wrote off one loan with a $5.4 million outstanding balance related to an office property in Las Vegas after the sponsor indicated it would turn over the property to the senior lender. Two additional loans were transferred to real estate owned through foreclosure, adding a multifamily property in Kansas City, Missouri, and an office property in Charlotte, North Carolina, to the company’s growing portfolio of directly held real estate.

The company did resume lending activity after year-end, originating an $11.4 million first mortgage loan in February 2026 secured by a multifamily property in Texas, with an all-in yield of 7.2 percent.

Growing Real Estate Portfolio Through Foreclosures

InPoint’s portfolio of real estate owned expanded substantially during 2025. The carrying value of directly held properties, net of depreciation, grew to $93.3 million from $39.6 million a year earlier. The company now owns three office properties and two multifamily properties acquired through non-judicial foreclosure transactions.

Management has indicated it is analyzing the impact of liquidating these foreclosed assets and potentially redeploying the proceeds into newly originated first mortgage loans. The stated goal is to position the portfolio for a future strategic transaction when capital market conditions improve, with the aim of maximizing stockholder value and providing investors access to some level of liquidity. However, the company cautioned there is no assurance it will successfully implement any such plan.

Financial Performance and Distribution Coverage

Total income for the year was $23.0 million, compared to $24.4 million in 2024. Net interest income fell to $14.0 million from $21.6 million as the loan portfolio shrank, though revenue from real estate operations more than tripled to $9.0 million as the company collected rent from its expanded property holdings.

Operating expenses rose to $17.9 million from $10.4 million, primarily due to increased real estate operating costs and depreciation associated with the foreclosed properties. The company recorded a $1.2 million reversal of credit losses, an improvement from the $2.3 million provision booked in 2024.

InPoint maintained its common stock distribution at an annualized rate of $1.25 per share throughout 2025, representing an 8.8 percent yield on its year-end net asset value of $14.13 per share. Approximately 90 percent of distributions were funded from operating cash flows, with the remainder coming from cash accumulated in prior periods. The company’s NAV per share for Class P stock stood at $14.12 as of December 31, 2025.

Liquidity and Capital Position

The company ended the year with $76.6 million in unrestricted cash and $302.7 million in available capacity on its borrowing facilities. Total repurchase agreement borrowings declined to $223.4 million from $360.7 million. InPoint also secured a $24.5 million mortgage loan against the Arbor Mist multifamily property in September 2025, adding a new source of financing.

The company’s share repurchase plan and distribution reinvestment plan both remain suspended, as they have been since January 2023. The second public offering terminated on November 1, 2025, and there is no public trading market for InPoint’s common stock. The Series A Preferred Stock continues to trade on the New York Stock Exchange under the ticker ICR PR A.

Interest Rate Environment and Outlook

InPoint noted that the Federal Reserve reduced rates three times during 2025, with the most recent cut in December bringing the target range to 3.50 to 3.75 percent. The company’s weighted average borrowing cost declined to 6.6 percent from 7.7 percent, while the weighted average yield on its loan portfolio fell to 7.5 percent from 8.1 percent.

Management expressed cautious optimism that continued rate reductions could bring more liquidity to the commercial real estate debt market, improve borrowers’ ability to refinance, and support property values. The company said it would focus during 2026 on originating additional loans and working with borrowers on extending or restructuring maturing loans, with an emphasis on obtaining principal reductions or payoffs.

All 15 loans in the portfolio were current on contractual interest payments with no deferrals during 2025. However, one loan secured by a Honolulu office property matured in February 2026 without being repaid or extended, prompting the company to begin foreclosure proceedings. Another loan secured by a Texas multifamily property carries a $942,000 asset-specific reserve as it matures in May 2026.

InPoint is externally managed by Inland InPoint Advisor, a subsidiary of Inland Real Estate Investment Corporation, with sub-advisory services provided by SPCRE InPoint Advisors, an affiliate of Sound Point Capital Management. The company had approximately 10.1 million shares of common stock outstanding as of March 2026 and reported total assets of $529.2 million.