Filed Pursuant to Rule 424(b)(3)

Registration No. 333-230465

INPOINT COMMERCIAL REAL ESTATE INCOME, INC.

SUPPLEMENT NO. 18 DATED JANUARY 14, 2021 TO THE

PROSPECTUS DATED MARCH 19, 2021

 

This prospectus supplement no. 18 (this “Supplement”) is part of and should be read in conjunction with the base prospectus of InPoint Commercial Real Estate Income, Inc. dated March 19, 2021, prospectus supplement no. 1 dated April 15, 2021, prospectus supplement no. 2 dated April 29, 2021, prospectus supplement no. 3 dated May 17, 2021, prospectus supplement no. 4 dated June 15, 2021, prospectus supplement no. 5 dated July 8, 2021, prospectus supplement no. 6 dated July 12, 2021, prospectus supplement no. 7 dated July 15, 2021, prospectus supplement no. 8 dated August 16, 2021, prospectus supplement no. 9 dated September 7, 2021, prospectus supplement no. 10 dated September 15, 2021, prospectus supplement no. 11 dated September 15, 2021, prospectus supplement no. 12 dated September 22, 2021, prospectus supplement no. 13 dated October 15, 2021, prospectus supplement no. 14 dated November 15, 2021, prospectus supplement no. 15 dated November 29, 2021, prospectus supplement no. 16 dated December 15, 2021 and prospectus supplement no. 17 dated January 11, 2022 (collectively, the “prospectus”). Unless otherwise defined herein, capitalized terms used in this Supplement shall have the same meanings as in the prospectus.

 

The purposes of this Supplement are as follows:

 

 

to disclose the transaction price as of February 1, 2022, the first business day of the month, for each class of our common stock being offered and sold in this offering; and

 

to disclose our NAV per share as of December 31, 2021; and

 

to disclose each of our commercial mortgage loans entered into since December 15, 2021 as of January 13, 2022.

Transaction Prices

The transaction price for each share class of our common stock for subscriptions to be accepted as of February 1, 2022, the first business day of the month, and for distribution reinvestments is as follows:

 

 

Transaction Price (per share)

 

Class A

 

$

20.2156

 

Class T

 

$

20.2149

 

Class S

 

$

20.1761

 

Class D

 

$

20.2102

 

Class I

 

$

20.2160

 

 

 

As of December 31, 2021, we had not sold any Class S shares. The February 1, 2022 transaction price for our Class S shares is based on our aggregate NAV for all share classes as of December 31, 2021. The purchase price of our common stock for each share class equals the transaction price of such class, plus applicable upfront selling commissions and dealer manager fees. A detailed calculation of the NAV per share is set forth below. No transactions or events have occurred since December 31, 2021 that would have a material impact on our NAV per share.

December 31, 2021 NAV per Share

We calculate NAV per share in accordance with the valuation guidelines that have been approved by our board of directors. Our NAV per share, which is updated as of the last calendar day of each month, is posted on our website at www.inland-investments.com/inpoint. Please refer to “Net Asset Value Calculation and Valuation Guidelines” in the prospectus, as supplemented, for how our NAV is determined. The Advisor is ultimately responsible for determining our NAV. The valuation of our commercial real estate loan portfolio is reviewed by our independent valuation advisor. We have included a breakdown of the components of total net asset value attributable to common stock and NAV per share for December 31, 2021.


Our total net asset value attributable to common stock presented in the following table includes the NAV of our Class A, Class T, Class S, Class D, and Class I common stock being sold in this offering, as well as our Class P common stock, which is not being sold in this offering. As of December 31, 2021, we had not sold any Class S shares. The following table provides a breakdown of the major components of our total net asset value attributable to common stock as of December 31, 2021 ($ and shares in thousands, except per share data):

Components of NAV

 

December 31, 2021

 

Commercial mortgage loans

 

$

667,405

 

Real estate owned, net (1)

 

 

17,100

 

Cash and cash equivalents and restricted cash

 

 

57,268

 

Other assets

 

 

7,092

 

Repurchase agreements - commercial mortgage loans

 

 

(307,083

)

Credit facility payable

 

 

(14,350

)

Loan participations sold

 

 

(109,772

)

Reserve for negative impact of COVID on real estate owned (2)

 

 

(1,402

)

Due to related parties

 

 

(2,894

)

Distributions payable

 

 

(1,137

)

Interest payable

 

 

(364

)

Accrued stockholder servicing fees (3)

 

 

(111

)

Other liabilities

 

 

(3,864

)

Preferred stock

 

 

(86,597

)

Net asset value attributable to common stock

 

$

221,291

 

Number of outstanding shares

 

 

10,968

 

Aggregate NAV per share

 

$

20.1761

 

 

 

(1)

We obtained an appraisal of the Renaissance Chicago O’Hare Suites Hotel dated December 30, 2021 that valued the property at $17,100.

 

(2)

As of December 31, 2020, we established as a component of the NAV calculation a $2,250 reserve for the estimated negative impact of COVID-19 during 2021 on real estate owned. We have increased this reserve by an additional $1,000 as of December 31, 2021, for expected losses during 2022 for the real estate owned related to the continuing COVID-19 pandemic. Because we had already established a reserve for losses, the monthly loss on real estate owned set forth below reduces the reserve but has no negative effect on the NAV. Below is a reconciliation of the reserve ($ in thousands):

Beginning reserve balance as of November 30, 2021

 

$

(723

)

Plus: Net loss on real estate owned for November:

 

 

 

 

Revenue from real estate owned

 

 

662

 

Real estate owned operating expense

 

 

(1,017

)

Non-cash adjustment for ground lease

 

 

34

 

Net loss from real estate owned

 

 

(321

)

Additional reserve

 

 

(1,000

)

Reserve balance as of December 31, 2021

 

$

(1,402

)

 

 

(3)

Stockholder servicing fees only apply to Class T, Class S, and Class D shares. For purposes of NAV, we recognize the stockholder servicing fee as a reduction of NAV on a monthly basis as such fee is paid. Under accounting principles generally accepted in the United States of America (“GAAP”), we accrue the full cost of the stockholder servicing fee as an offering cost at the time we sell Class T, Class S, and Class D shares. As of December 31, 2021, we have accrued under GAAP $700 of stockholder servicing fees payable to the Dealer Manager related to the Class T and Class D shares sold. As of December 31, 2021, we have not sold any Class S shares and, therefore, we have not accrued any stockholder servicing fees payable to the Dealer Manager related to Class S shares. The Dealer Manager does not retain any of these fees, all of which are retained by, or reallowed (paid) to, participating broker-dealers and servicing broker-dealers for ongoing stockholder services performed by such broker-dealers.

 

 

The following table provides a breakdown of our total net asset value attributable to common stock and NAV per share by share class as of December 31, 2021 ($ and shares in thousands, except per share data):


NAV Per Share

 

Class P

 

 

Class A

 

 

Class T

 

 

Class S

 

 

Class D

 

 

Class I

 

 

Total

 

Net asset value attributable to common stock

 

$

191,462

 

 

$

13,328

 

 

$

7,845

 

 

$

 

 

$

956

 

 

$

7,687

 

 

$

221,291

 

Number of outstanding shares

 

 

9,493

 

 

 

659

 

 

 

388

 

 

 

 

 

 

47

 

 

 

380

 

 

 

10,968

 

NAV per share as of December 31, 2021

 

$

20.1689

 

 

$

20.2156

 

 

$

20.2149

 

 

$

 

 

$

20.2102

 

 

$

20.2160

 

 

$

20.1761

 

 

Commercial Mortgage Loans Held for Investment

The following information supplements the table of select loan information on page 73 of our prospectus to add each of our commercial mortgage loans entered into since December 15, 2021 as of January 13, 2022 ($ in thousands):

Since December 15, 2021

Origination

Date

 

Loan

Type (1)

 

Principal

Balance

 

 

Cash Coupon (2)

 

All-in

Yield (2)

 

 

Maximum

Maturity (3)

 

State

 

Property

Type

 

LTV (4)

 

12/15/21

 

First mortgage

 

$

25,210

 

 

L+3.20%

 

3.3%

 

 

1/9/27

 

OR

 

Multifamily

 

 

70

%

(1)

First mortgage loans are first position mortgage loans.

(2)

Cash coupon is the stated rate on the loan. All-in yield is the present value of all future principal and interest payments on the loan and does not include any origination fees or deferred commitment fees. Our first mortgage loans are all floating rate and each contains a minimum LIBOR floor.

(3)

Maximum maturity assumes all extension options are exercised by the borrower; however, loans may be repaid prior to such date.

(4)

Loan-to-value (“LTV”) was determined at loan origination and is not updated for subsequent property valuations or loan modifications.

 

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