UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-40833

INPOINT COMMERCIAL REAL ESTATE INCOME, INC.

(Exact name of registrant as specified in its charter)

Maryland

32-0506267

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer
Identification No.)

2901 Butterfield Road
Oak Brook, Illinois

60523

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (800) 826-8228

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading
Symbol(s)

Name of each exchange on which registered

6.75% Series A Cumulative Redeemable Preferred Stock, par value $0.001

ICR PR A

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☐

Non-accelerated filer	☒	Smaller Reporting Company	☒

Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November 6, 2025, the Registrant had the following shares of common stock outstanding: 8,562,777 shares of Class P common stock, 290,345 shares of Class T common stock, 472,851 shares of Class I common stock, 745,881 shares of Class A common stock, 48,015 shares of Class D common stock and no shares of Class S common stock.

TABLE OF CONTENTS


PART I FINANCIAL INFORMATION
Item 1.	Financial Statements

	Consolidated Balance Sheets as of September 30, 2025 (unaudited) and December 31, 2024	2

	Unaudited Consolidated Statements of Operations for the three and nine months ended September 30, 2025 and 2024	3

	Unaudited Consolidated Statements of Changes in Stockholders’ Equity for the three months ended September 30, 2025 and 2024	4

	Unaudited Consolidated Statements of Changes in Stockholders’ Equity for the nine months ended September 30, 2025 and 2024	5

	Unaudited Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024	6

	Notes to Consolidated Financial Statements (Unaudited)	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	29

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	53

Item 4.	Controls and Procedures	54

PART II OTHER INFORMATION

Item 1.	Legal Proceedings	55

Item 1A.	Risk Factors	55

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	55

Item 3.	Defaults Upon Senior Securities	57

Item 4.	Mine Safety Disclosures	57

Item 5.	Other Information	57

Item 6.	Exhibits	58

Signatures		59

INPOINT COMMERCIAL REAL ESTATE INCOME, INC.

CONSOLIDATED BALANCE SHEETS

(Dollar amounts in thousands, except per share amounts)


	September 30, 2025 (unaudited)			December 31, 2024
ASSETS
Cash and cash equivalents	$	70,878		$	64,549
Restricted cash		2,988			—
Commercial mortgage loans:
Commercial mortgage loans at cost		383,549			563,071
Allowance for credit losses		(8,162	)		(13,898	)
Commercial mortgage loans at cost, net		375,387			549,173
Real estate owned, net of depreciation		93,414			39,633
Acquired lease intangible assets, net		4,656			2,969
Deferred debt finance costs		767			453
Accrued interest receivable		1,268			2,741
Due from related parties		555			—
Prepaid expenses and other assets		2,851			1,797
Total assets	$	552,764		$	661,315
LIABILITIES AND EQUITY
Liabilities:
Repurchase agreements	$	242,270		$	360,677
Loan participations sold, net		47,141			48,524
Mortgage loan payable, net		23,804			—
Acquired lease intangible liabilities, net		639			404
Due to related parties		1,137			1,407
Accrued interest payable		2,513			2,349
Distributions payable		1,052			1,051
Accrued expenses and other liabilities		3,144			2,324
Total liabilities		321,700			416,736

Commitments and contingencies (Note 8)

Stockholders’ Equity:
Preferred stock, $0.001 par value, 50,000,000 shares authorized:
6.75% Series A Cumulative Redeemable Preferred Stock, $0.001 par value, 4,025,000 shares authorized and 3,544,553 shares issued and outstanding as of September 30, 2025 and December 31, 2024		4			4
Class P common stock, $0.001 par value, 500,000,000 shares authorized, 8,562,777 shares issued and outstanding as of September 30, 2025 and December 31, 2024		9			9
Class A common stock, $0.001 par value, 500,000,000 shares authorized, 745,881 shares issued and outstanding as of September 30, 2025 and December 31, 2024		1			1
Class T common stock, $0.001 par value, 500,000,000 shares authorized, 290,345 shares issued and outstanding as of September 30, 2025 and December 31, 2024		—			—
Class S common stock, $0.001 par value, 500,000,000 shares authorized, 0 shares issued and outstanding as of as of September 30, 2025 and December 31, 2024		—			—
Class D common stock, $0.001 par value, 500,000,000 shares authorized, 48,015 shares issued and outstanding as of September 30, 2025 and December 31, 2024		—			—
Class I common stock, $0.001 par value, 500,000,000 shares authorized, 472,851 and 470,980 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively		—			—
Additional paid in capital		340,570			339,524
Accumulated deficit		(109,520	)		(94,959	)
Total stockholders’ equity		231,064			244,579
Total liabilities and stockholders’ equity	$	552,764		$	661,315

The accompanying notes are an integral part of these consolidated financial statements.

INPOINT COMMERCIAL REAL ESTATE INCOME, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, dollar amounts in thousands, except per share amounts)


	Three months ended September 30,						Nine months ended September 30,
	2025			2024			2025			2024
Income:
Interest income	$	8,253		$	14,760		$	29,768		$	44,855
Less: Interest expense		(5,617	)		(9,485	)		(18,833	)		(28,317	)
Net interest income		2,636			5,275			10,935			16,538
Revenue from real estate		2,593			1,274			6,008			1,274
Total income		5,229			6,549			16,943			17,812
Operating expenses:
Advisory fee		780			797			2,353			2,401
Amortization of debt finance costs		329			350			1,001			1,122
Directors compensation		19			20			57			59
Professional service fees		319			255			868			748
Real estate operating expenses		1,742			721			3,787			721
Depreciation and amortization		1,824			656			4,033			656
Other expenses		331			410			986			1,125
Total operating expenses		5,344			3,209			13,085			6,832
Other income (loss):
Reversal of (provision for) credit losses		892			(3,654	)		3,404			(2,905	)
Net realized (loss) gain on disposition of commercial loans		(8,418	)		929			(7,882	)		929
Total other loss		(7,526	)		(2,725	)		(4,478	)		(1,976	)
Net (loss) income		(7,641	)		615			(620	)		9,004
Series A Preferred Stock dividends		(1,495	)		(1,495	)		(4,486	)		(4,486	)
Net (loss) income attributable to common stockholders	$	(9,136	)	$	(880	)	$	(5,106	)	$	4,518
Net (loss) income attributable to common stockholders per share basic and diluted	$	(0.90	)	$	(0.09	)	$	(0.50	)	$	0.45
Weighted average number of shares of common stock
Basic		10,118,262			10,116,561			10,118,087			10,116,315
Diluted		10,118,262			10,116,561			10,118,087			10,117,691

The accompanying notes are an integral part of these consolidated financial statements.

INPOINT COMMERCIAL REAL ESTATE INCOME, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(Unaudited, dollar amounts in thousands)


For the Three Months Ended September 30, 2025	Par Value Preferred Stock		Par Value Common Stock
	Series A		Class P		Class A		Class T		Class S		Class D		Class I		Additional Paid in Capital		Accumulated Deficit			Total Stockholders’ Equity
Balance as of June 30, 2025	$	4	$	9	$	1	$	—	$	—	$	—	$	—	$	340,562	$	(97,232	)	$	243,344
Net loss		—		—		—		—		—		—		—		—		(7,641	)		(7,641	)
Common stock distributions declared		—		—		—		—		—		—		—		—		(3,152	)		(3,152	)
Preferred stock distributions declared		—		—		—		—		—		—		—		—		(1,495	)		(1,495	)
Equity-based compensation		—		—		—		—		—		—		—		8		—			8
Balance at September 30, 2025	$	4	$	9	$	1	$	—	$	—	$	—	$	—	$	340,570	$	(109,520	)	$	231,064


For the Three Months Ended September 30, 2024	Par Value Preferred Stock		Par Value Common Stock
	Series A		Class P		Class A		Class T		Class S		Class D		Class I		Additional Paid in Capital			Accumulated Deficit			Total Stockholders’ Equity
Balance as of June 30, 2024	$	4	$	9	$	1	$	—	$	—	$	—	$	—	$	339,525		$	(89,947	)	$	249,592
Offering costs		—		—		—		—		—		—		—		(15	)		—			(15	)
Net income		—		—		—		—		—		—		—		—			615			615
Common stock distributions declared		—		—		—		—		—		—		—		—			(3,151	)		(3,151	)
Preferred stock distributions declared		—		—		—		—		—		—		—		—			(1,495	)		(1,495	)
Equity-based compensation		—		—		—		—		—		—		—		8			—			8
Balance at September 30, 2024	$	4	$	9	$	1	$	—	$	—	$	—	$	—	$	339,518		$	(93,978	)	$	245,554

The accompanying notes are an integral part of these consolidated financial statements.

INPOINT COMMERCIAL REAL ESTATE INCOME, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(Unaudited, dollar amounts in thousands)


For the Nine Months Ended September 30, 2025	Par Value Preferred Stock		Par Value Common Stock
	Series A		Class P		Class A		Class T		Class S		Class D		Class I		Additional Paid in Capital		Accumulated Deficit			Total Stockholders’ Equity
Balance as of December 31, 2024	$	4	$	9	$	1	$	—	$	—	$	—	$	—	$	339,524	$	(94,959	)	$	244,579
Reimbursement of offering costs (Note 10)		—		—		—		—		—		—		—		1,023		—			1,023
Net loss		—		—		—		—		—		—		—		—		(620	)		(620	)
Common stock distributions declared		—		—		—		—		—		—		—		—		(9,455	)		(9,455	)
Preferred stock distributions declared		—		—		—		—		—		—		—		—		(4,486	)		(4,486	)
Equity-based compensation		—		—		—		—		—		—		—		23		—			23
Balance at September 30, 2025	$	4	$	9	$	1	$	—	$	—	$	—	$	—	$	340,570	$	(109,520	)	$	231,064


For the Nine Months Ended September 30, 2024	Par Value Preferred Stock		Par Value Common Stock
	Series A		Class P		Class A		Class T		Class S		Class D		Class I		Additional Paid in Capital			Accumulated Deficit			Total Stockholders’ Equity
Balance as of December 31, 2023	$	4	$	9	$	1	$	—	$	—	$	—	$	—	$	339,581		$	(89,044	)	$	250,551
Offering costs		—		—		—		—		—		—		—		(86	)		—			(86	)
Net income		—		—		—		—		—		—		—		—			9,004			9,004
Common stock distributions declared		—		—		—		—		—		—		—		—			(9,452	)		(9,452	)
Preferred stock distributions declared		—		—		—		—		—		—		—		—			(4,486	)		(4,486	)
Equity-based compensation		—		—		—		—		—		—		—		23			—			23
Balance at September 30, 2024	$	4	$	9	$	1	$	—	$	—	$	—	$	—	$	339,518		$	(93,978	)	$	245,554

The accompanying notes are an integral part of these consolidated financial statements.

INPOINT COMMERCIAL REAL ESTATE INCOME, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, dollar amounts in thousands)


	Nine months ended September 30,
	2025			2024
Cash flows from operating activities
Net (loss) income	$	(620	)	$	9,004
Adjustments to reconcile net (loss) income to cash provided by operations:
Net realized loss (gain) on disposition of commercial loans		7,882			(929	)
(Reversal of) provision for credit losses		(3,404	)		2,905
Depreciation and amortization expense		4,033			656
Amortization of acquired above- and below-market leases, net		(56	)		(19	)
Amortization of equity-based compensation		23			23
Amortization of debt finance costs to operating expense		1,001			1,122
Amortization of loan extension fees		(671	)		(375	)
Changes in assets and liabilities:
Accrued interest receivable		842			257
Accrued expenses and other liabilities		866			1,183
Accrued interest payable		213			716
Due to related parties		(123	)		(43	)
Prepaid expenses and other assets		(1,054	)		(1,098	)
Net cash provided by operating activities		8,932			13,402
Cash flows from investing activities:
Origination/funding of commercial loans		(2,043	)		(8,006	)
Loan extension fees received on commercial loans		404			298
Principal repayments of commercial loans		74,029			49,845
Proceeds from sale of commercial loan		39,063			13,678
Real estate capital expenditures		(226	)		(3	)
Net cash provided by investing activities		111,227			55,812
Cash flows from financing activities:
Payment of offering costs		(20	)		(112	)
Reimbursement of offering costs		468			—
Proceeds from repurchase agreements		—			8,202
Principal repayments of repurchase agreements		(118,407	)		(46,875	)
Proceeds from mortgage loan payable		24,500			—
Principal repayments of credit facility		—			(9,498	)
Proceeds from sale of loan participations		66			—
Principal repayments of loan participations		(1,498	)		(1,000	)
Debt finance costs		(2,011	)		(1,316	)
Distributions paid to common stockholders		(9,454	)		(9,451	)
Distributions paid to preferred stockholders		(4,486	)		(4,486	)
Net cash used in financing activities		(110,842	)		(64,536	)
Net change in cash, cash equivalents and restricted cash		9,317			4,678
Cash, cash equivalents and restricted cash at beginning of period		64,549			54,143
Cash, cash equivalents and restricted cash at end of period	$	73,866		$	58,821
Supplemental disclosure of cash flow information:
Amortization of deferred exit fees due to related party	$	273		$	(417	)
Interest paid	$	18,615		$	28,881
Offering cost reimbursement receivable from related parties (Note 10)	$	555		$	—
Net assets acquired upon foreclosure of commercial loans	$	58,984		$	24,035
Deferred interest capitalized on real estate loan	$	631		$	—
Accrued stockholder servicing fee due to related party	$	(20	)	$	(27	)

The accompanying notes are an integral part of these consolidated financial statements.

InPoint Commercial Real Estate Income, Inc.

Notes to Consolidated Financial Statements

September 30, 2025

(Unaudited, dollar amounts in thousands, except per share amounts)

Note 1 – Organization and Business Operations

InPoint Commercial Real Estate Income, Inc. (the “Company”) was incorporated in Maryland on September 13, 2016 to originate, acquire and manage a diversified portfolio of commercial real estate (“CRE”) investments primarily comprised of CRE debt, including (i) primarily floating-rate first mortgage loans and (ii) subordinate mortgage and mezzanine loans. The Company may also invest in participations in loans secured by CRE, floating-rate CRE securities, such as commercial mortgage-backed securities (“CMBS”), senior unsecured debt of publicly traded real estate investment trusts (“REITs”), and select equity investments in single-tenant, net leased properties. Substantially all of the Company’s business is conducted through InPoint REIT Operating Partnership, LP (the “Operating Partnership”), a Delaware limited partnership. The Company is the sole general partner and directly or indirectly holds all of the limited partner interests in the Operating Partnership. The Company has elected to be taxed as a REIT for U.S. federal income tax purposes.

The Company is externally managed by Inland InPoint Advisor, LLC (the “Advisor”), a Delaware limited liability company formed in August 2016 that is a wholly owned indirect subsidiary of Inland Real Estate Investment Corporation (“IREIC”), a member of The Inland Real Estate Group of Companies, Inc. The Advisor is responsible for coordinating the management of the day-to-day operations and originating, acquiring and managing the Company’s CRE investment portfolio, subject to the supervision of the Company’s board of directors (the “Board”). The Advisor performs its duties and responsibilities as the Company’s fiduciary pursuant to an amended and restated advisory agreement dated July 1, 2021 among the Company, the Advisor and the Operating Partnership (the “Advisory Agreement”).

The Advisor has delegated certain of its duties to SPCRE InPoint Advisors, LLC (the “Sub-Advisor”), a Delaware limited liability company formed in September 2016 that is a wholly owned subsidiary of Sound Point CRE Management, LP, pursuant to a second amended and restated sub-advisory agreement between the Advisor and the Sub-Advisor dated July 1, 2021. Among other duties, the Sub-Advisor has the authority to identify, negotiate, acquire and originate the Company’s investments and provide portfolio management, disposition, property management and leasing services to the Company. Notwithstanding such delegation to the Sub-Advisor, the Advisor retains ultimate responsibility for the performance of all the matters entrusted to it under the Advisory Agreement, including those duties which the Advisor has not delegated to the Sub-Advisor, such as (i) valuation of the Company’s assets and calculation of the Company’s net asset value (“NAV”); (ii) management of the Company’s day-to-day operations; (iii) preparation of stockholder reports and communications and arrangement of the Company’s annual stockholder meetings; and (iv) monitoring the Company’s ongoing compliance with the REIT qualification requirements for U.S. federal income tax purposes.

On October 25, 2016, the Company commenced a private offering (the “Private Offering”) of up to $500,000 in shares of Class P common stock (“Class P Shares”). The Company issued 10,258,094 Class P Shares in the Private Offering, resulting in gross proceeds of $276,681 and terminated the Private Offering on June 28, 2019.

On March 22, 2019, the Company filed a registration statement on Form S-11 (File No. 333-230465) (the “2019 Registration Statement”) with the Securities and Exchange Commission (the “SEC”) to register up to $2,350,000 in shares of common stock (the “IPO”), and on May 3, 2019, the Company commenced the IPO. The IPO terminated upon the commencement of the Second Public Offering (described below).

On September 22, 2021, the Company completed an underwritten public offering of 3,500,000 shares of its 6.75% Series A Cumulative Redeemable Preferred Stock, par value $0.001 per share (the “Series A Preferred Stock”), with a liquidation preference of $25.00 per share (the “Preferred Stock Offering”). In addition, on October 15, 2021, Raymond James & Associates, Inc., as a representative of the underwriters, partially exercised their over-allotment option to purchase an additional 100,000 shares of Series A Preferred Stock. The Series A Preferred Stock were issued and sold pursuant to an effective registration statement on Form S-11 (File No. 333-258802) filed with the SEC. The Company received net proceeds in the Preferred Stock Offering of $86,310, after underwriter’s discount and issuance costs, and contributed the net proceeds to the Operating Partnership in exchange for an equivalent number of Series A units in the Operating Partnership (with economic terms that mirror those of the Series A Preferred Stock). For more information on the Preferred Stock Offering, see “Note 6 – Stockholders’ Equity.”

On April 28, 2022, the Company filed a registration statement on Form S-11 (File No. 333-264540) (the “2022 Registration Statement”) with the SEC to register up to $2,200,000 in shares of common stock, which was declared effective by the SEC on November 2, 2022 (the “Second Public Offering” and collectively with the IPO, the “Public Offerings”).

InPoint Commercial Real Estate Income, Inc.

Notes to Consolidated Financial Statements

September 30, 2025

(Unaudited, dollar amounts in thousands, except per share amounts)

In light of the pace of fundraising in the Second Public Offering and the amount of monthly redemption requests pursuant to the share repurchase plan (the “SRP”), which were in excess of such fundraising, on January 30, 2023, the Board suspended the SRP. In connection with such suspension, the Board also suspended the primary portion of the Second Public Offering (the “Primary Offering”) and the distribution reinvestment plan (the “DRP”), effective as of February 10, 2023. The Primary Offering terminated on November 1, 2025. The SRP and the DRP each remains suspended unless and until such time as the Board approves their resumption.

Please refer to “Note 14 – Subsequent Events” for updates to the Company’s business after September 30, 2025.

Note 2 – Summary of Significant Accounting Policies

Disclosures discussing all significant accounting policies are set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on March 14, 2025 (the “Annual Report”), under the heading “Note 2 – Summary of Significant Accounting Policies.” See below for discussion of changes to the Company’s significant accounting policies for the nine months ended September 30, 2025.

Basis of Accounting

The accompanying consolidated financial statements and related footnotes have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and require management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reported periods. Actual results could differ from such estimates.

In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation.

Cash, Cash Equivalents and Restricted Cash

Cash and cash equivalents include funds on deposit with financial institutions, including demand deposits with financial institutions with original maturities of three months or less. The account balance may exceed the Federal Deposit Insurance Corporation (“FDIC”) insurance coverage limits and, as a result, there could be a concentration of credit risk related to amounts on deposit in excess of FDIC insurance coverage limits. The Company believes that the risk will not be significant, as the Company does not anticipate the financial institutions’ non-performance.

Restricted cash represents cash the Company is required to hold in a segregated account as additional collateral on real estate securities repurchase agreements and cash required to be set aside by lenders for real estate taxes, insurance, capital expenditures and tenant improvements on the Company’s real estate owned (“REO”).

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the Company’s consolidated balance sheets to such amounts shown on the Company’s consolidated statements of cash flows:


	September 30,
	2025		2024
Cash and cash equivalents	$	70,878	$	58,821
Restricted cash		2,988		—
Total cash, cash equivalents, and restricted cash	$	73,866	$	58,821

Recently Adopted Accounting Pronouncements

In November 2023, the Financial Accounting Standards Board (the “FASB”) issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires a public entity to disclose significant segment expenses and other segment items on an annual and interim basis and to provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that were required annually. Public entities with a single reportable segment are required to provide the new disclosures and all the disclosures required under ASC 280. ASU 2023-07 became effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, and early adoption was permitted. The Company has adopted

InPoint Commercial Real Estate Income, Inc.

Notes to Consolidated Financial Statements

September 30, 2025

(Unaudited, dollar amounts in thousands, except per share amounts)

ASU 2023-07 and updated its disclosures pertaining to having a single reportable segment. See Note 9 – “Segment Reporting” for further information. The adoption did not have any impact on the Company’s financial position, results of operations, or cash flows.

Accounting Pronouncements Recently Issued but Not Yet Effective

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 improves the transparency of income tax disclosures related to rate reconciliation and income taxes. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. The amendments should be applied prospectively, however retrospective application is permitted. The Company does not expect the adoption of ASU 2023-09 to have a material impact on the Company’s 2025 annual consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. Additionally, in January 2025, the FASB issued ASU 2025-01, Clarifying the Effective Date, which revised the effective date of ASU 2024-03 for interim periods. ASU 2024-03 requires disclosures in the notes to the financial statements on specified information about certain costs and expenses that are included on the face of the income statement for each interim and annual reporting period. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026 and interim periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted, and may be applied either prospectively or retrospectively. The Company is currently evaluating the impact of ASU 2024-03 on the Company’s consolidated financial statements.

Note 3 – Commercial Mortgage Loans Held for Investment

The following tables show a summary of the Company’s commercial mortgage loans held for investment as of September 30, 2025 and December 31, 2024:

September 30, 2025


Loan Type (1)	Number of Loans		Principal Balance		Unamortized (fees)/costs, net		Allowance for credit losses			Carrying Value		Weighted Average Interest Rate (2)			Weighted Average Years to Maturity (3)
First mortgage loans		16	$	369,577	$	1,092	$	(5,012	)	$	365,657		7.5	%		0.4
Credit loans		2		12,880		—		(3,150	)		9,730		9.2	%		2.2
Total and average		18	$	382,457	$	1,092	$	(8,162	)	$	375,387		7.5	%		0.5

December 31, 2024


Loan Type (1)	Number of Loans		Principal Balance		Unamortized (fees)/costs, net		Allowance for credit losses			Carrying Value		Weighted Average Interest Rate (2)			Weighted Average Years to Maturity (3)
First mortgage loans		23	$	549,303	$	388	$	(9,898	)	$	539,793		7.7	%		0.6
Credit loans		2		13,380		—		(4,000	)		9,380		9.2	%		1.9
Total and average		25	$	562,683	$	388	$	(13,898	)	$	549,173		7.7	%		0.6

(1)

First mortgage loans are first position mortgage loans and credit loans are mezzanine and subordinated loans.

(2)

Weighted average interest rate is based on the loan spreads plus the applicable indices as of the last interest reset date, which is typically the 15th of each month. On September 15, 2025, the one-month term USD Secured Overnight Financing Rate (“SOFR”) rate reset to 4.15%. On December 15, 2024, the SOFR rate reset to 4.40%. Weighted average interest rate excludes maturity default interest and interest on loans placed on nonaccrual status.

(3)

Weighted average years to maturity excludes allowable extensions on the loans.

InPoint Commercial Real Estate Income, Inc.

Notes to Consolidated Financial Statements

September 30, 2025

(Unaudited, dollar amounts in thousands, except per share amounts)

For the nine months ended September 30, 2025, the activity in the Company’s commercial mortgage loans, held-for-investment portfolio was as follows:


	Commercial mortgage loans at cost			Allowance for credit losses			Carrying Value
Balance at Beginning of Year	$	563,071		$	(13,898	)	$	549,173
Loan originations/advances		2,043			—			2,043
Principal repayments		(72,967	)		—			(72,967	)
Sale of loan (1)		(47,476	)		—			(47,476	)
Amortization of loan origination and deferred exit fees		849			—			849
Deferred interest capitalized on real estate loan		631			—			631
Origination fees and extension fees received on commercial loans		(776	)		—			(776	)
Transfer on foreclosure to real estate owned (2)		(61,826	)		—			(61,826	)
Reversal of credit losses		—			3,357			3,357
Charge-offs (2)		—			2,379			2,379
Balance at End of Period	$	383,549		$	(8,162	)	$	375,387

(1)

Relates to the sale of a loan that was placed on nonaccrual status as of July 15, 2025. The Company completed the sale of the loan in September 2025 and recognized a loss on sale of $8,413 on the loan, which is included within net realized (loss) gain on disposition of commercial loans in the accompanying consolidated statements of operations.

(2)

Relates to the acquisition of two properties secured by senior loans. See Note 13 – “Real Estate Owned” for additional information.

Allowance for Credit Losses

The following table presents the activity in the Company’s allowance for credit losses for the nine months ended September 30, 2025:


	Commercial Mortgage Loans			Unfunded Loan Commitments (1)			Total
Balance at beginning of period	$	(13,898	)	$	(96	)	$	(13,994	)
Reversal of credit losses		3,357			47			3,404
Charge-offs (2)		2,379			—			2,379
Ending allowance for credit losses	$	(8,162	)	$	(49	)	$	(8,211	)

(1)

The reserve for expected credit losses related to unfunded loan commitments is recorded in “accrued expenses and other liabilities” on the consolidated balance sheets.

(2)

Relates to the acquisition of two properties secured by senior loans. See Note 13 – “Real Estate Owned” for additional information.

The following table presents the activity in the Company’s allowance for credit losses for the nine months ended September 30, 2024:


	Commercial Mortgage Loans			Unfunded Loan Commitments (1)			Total
Balance at beginning of period	$	(21,849	)	$	(289	)	$	(22,138	)
(Provision for) reversal of credit losses		(3,055	)		150			(2,905	)
Charge-offs (2)		855			—			855
Ending allowance for credit losses	$	(24,049	)	$	(139	)	$	(24,188	)

(1)

The reserve for expected credit losses related to unfunded loan commitments is recorded in “accrued expenses and other liabilities” on the consolidated balance sheets.

(2)

Relates to the acquisition of two properties secured by a senior loan in July 2024. See Note 13 - “Real Estate Owned” for additional information.

InPoint Commercial Real Estate Income, Inc.

Notes to Consolidated Financial Statements

September 30, 2025

(Unaudited, dollar amounts in thousands, except per share amounts)

As of September 30, 2025, the Company had a total current expected credit loss (“CECL”) reserve of $8,211, which included an asset-specific component of $4,358 related to two loans. During the nine months ended September 30, 2025, the Company decreased the CECL reserve by $5,783, which includes $2,379 charge-offs related to two loans. This CECL reserve reflects certain loans assessed for impairment in the Company’s portfolio as well as reserves determined based on an analysis of macroeconomic conditions. See “Asset-Specific CECL Reserve” section below for further discussion on the loans with asset-specific CECL reserve.

As of September 30, 2024, the Company had a total CECL reserve of $24,188, which included an asset-specific component of $16,754 related to five loans. During the nine months ended September 30, 2024, the Company increased the CECL reserve by $2,905 and reduced the CECL reserve by $855 with the charge-off of one loan. This CECL reserve reflects certain loans assessed for impairment in the Company’s portfolio as well as reserves determined based on an analysis of macroeconomic conditions.

Credit Characteristics

As part of the Company’s process for monitoring the credit quality of its investments, it performs a quarterly asset review of the investment portfolio and assigns risk ratings to each of its loans and certain securities it may own, such as CMBS. Risk factors include payment status, lien position, borrower financial resources and investment in collateral, collateral type, project economics and geographic location, as well as national and regional economic factors. To determine the likelihood of loss, the loans are rated on a 5-point scale as follows:


Investment Grade	Investment Grade Definition
1	Investment exceeding fundamental performance expectations and/or capital gain expected. Trends and risk factors since time of investment are favorable.
2	Performing consistent with expectations and a full return of principal and interest expected. Trends and risk factors are neutral to favorable.
3	Performing investment requiring closer monitoring. Trends and risk factors show some deterioration. Collection of principal and interest is still expected.
4	Underperforming investment with the potential of some interest loss but still expecting a positive return on investment. Trends and risk factors are negative.
5	Underperforming investment with expected loss of interest and some principal.

All investments are assigned an initial risk rating of 2 at origination or acquisition.

As of September 30, 2025, six loans had a risk rating of 2, nine had a risk rating of 3, two had a risk rating of 4 and one had a risk rating of 5. As of December 31, 2024, thirteen loans had a risk rating of 2, six had a risk rating of 3, four had a risk rating of 4 and two had a risk rating of 5.

Asset-Specific CECL Reserve

The table below provides the components of the asset-specific CECL reserve as of September 30, 2025 and December 31, 2024:


Loan Type	Collateral Type	September 30, 2025		December 31, 2024
Senior	Multifamily	$	—	$	212	(1)
Credit	Office		3,150		4,000	(2)
Senior	Office		1,208		937	(3)
Senior	Office		—		1,080	(4)
Senior	Office		—		803	(5)
Senior	Industrial		—		187	(6)
Total		$	4,358	$	7,219
____________

(1)

The loan is secured by a multifamily property in Arlington, TX with an outstanding balance of $24,331 and no unfunded commitment as of September 30, 2025, and a maturity date of December 9, 2025. During the quarter ended March 31, 2025, the Company observed an increase in the in-place net operating income and other macroeconomic improvements which resulted in

InPoint Commercial Real Estate Income, Inc.

Notes to Consolidated Financial Statements

September 30, 2025

(Unaudited, dollar amounts in thousands, except per share amounts)

an improvement in the estimated value of the property. As the estimated value exceeded the loan balance, the asset-specific CECL reserve was reversed. During the quarter ended September 30, 2025, the Company reviewed the property performance and estimated the property value, noting that the valuation exceeded the outstanding loan balance. As a result, no asset-specific CECL reserve was recorded for the loan as of September 30, 2025. The loan has a risk rating of 3 as of September 30, 2025.

(2)

The loan is secured by an office property in Las Vegas, NV with an outstanding balance of $5,380 and no unfunded commitment as of September 30, 2025. The Company has recorded an asset-specific CECL reserve of $3,150 for the loan as of September 30, 2025. On July 1, 2025, the Company entered into a forbearance and modification agreement with the borrower, which extended the maturity date of the loan to December 31, 2025. In addition, the Company agreed to accept $2,250 for the satisfaction of the loan balance plus all accrued and unpaid interest and lender fees. The borrower made a payment of $500 in July 2025 that was applied against the required amounts due. The loan has a risk rating of 5 as of September 30, 2025 and has been on nonaccrual status since July 1, 2024.

(3)

The loan was secured by an office property in Memphis, TN with an outstanding balance of $2,862 and no unfunded commitment as of September 30, 2025 and a maturity date of November 9, 2026. During the fourth quarter of 2024, the borrower sold a property included in the loan and paid down the principal balance of $5,072, and the Company extended the loan for one year. The Company has recorded an asset-specific CECL reserve of $1,208 as of September 30, 2025 as the estimated value of the property securing the loan was below the loan balance. The loan had a risk rating of 4 as of September 30, 2025. On October 28, 2025, the Company entered into a discounted payoff agreement with the borrower, pursuant to which the loan was settled for $1,678 in full satisfaction of all obligations under the loan.

(4)

The loan is secured by an office property in San Diego, CA with an outstanding balance of $13,626 and an unfunded commitment of $669 as of September 30, 2025, and a maturity date of May 9, 2026. During the quarter ended March 31, 2025, the Company observed an increase in the in-place net operating income and other macroeconomic improvements which resulted in an improvement in the estimated value of the property. As the estimated value exceeded the loan balance, the asset-specific CECL reserve was reversed. During the quarter ended September 30, 2025, the Company reviewed the property performance and estimated the property value, noting that the valuation exceeded the outstanding loan balance. As a result, no asset-specific CECL reserve was recorded for the loan as of September 30, 2025. The loan has a risk rating of 3 as of September 30, 2025.

(5)

The loan is secured by an office property in Honolulu, HI with an outstanding balance of $12,700 and no unfunded commitment as of September 30, 2025. The loan matured on April 9, 2023 and was accruing default interest. On March 18, 2025, the Company extended the loan maturity date to February 9, 2026 to allow the borrower to obtain long-term financing or other bridge financing. As part of the extension, the borrower made a principal reduction payment of $750 and paid other considerations. See “Loan Modifications” below for further information. During the quarter ended June 30, 2025, the Company observed an increase in the in-place net operating income and other macroeconomic improvements which resulted in an improvement in the estimated value of the property. As the estimated value exceeded the loan balance, the asset-specific CECL reserve was reversed. During the quarter ended September 30, 2025, the Company reviewed the property performance and estimated the property value, noting that the valuation exceeded the outstanding loan balance. As a result, no asset-specific CECL reserve was recorded for the loan as of September 30, 2025. The loan has a risk rating of 3 as of September 30, 2025.

(6)

The loan was secured by an industrial property in Mangonia Park, FL with an outstanding balance of $17,096 and no unfunded commitment as of June 30, 2025. The loan matured on April 9, 2025. During the quarter ended March 31, 2025, the Company observed an increase in the in-place net operating income and other macroeconomic improvements which resulted in an improvement in the estimated value of the property. As the estimated value exceeded the loan balance, the asset-specific CECL reserve was reversed. The loan was paid off in full including all outstanding accrued interest on July 8, 2025.

During the three and nine months ended September 30, 2025, the Company recognized $130 and $2,569, respectively, in interest income related to the nonaccrual status loans prior to such loans being placed on nonaccrual status. During the three and nine months ended September 30, 2024, the Company recognized $0 and $426, respectively, in interest income related to the nonaccrual status loans prior to such loans being placed on nonaccrual status. During the three and nine months ended September 30, 2025 and 2024, there was no reversal of interest income as a result of placing the loans on nonaccrual status. For the three and nine months ended September 30, 2025, the total interest income forgone on the loans on nonaccrual status was $882 and $2,538, respectively. For the three and nine months ended September 30, 2024, the total interest income forgone on the loans on nonaccrual status was $1,205 and $4,287, respectively.

InPoint Commercial Real Estate Income, Inc.

Notes to Consolidated Financial Statements

September 30, 2025

(Unaudited, dollar amounts in thousands, except per share amounts)

Loan Modifications

The Company may amend or modify a loan based on its specific facts and circumstances. These modifications are often in the form of a term extension to provide the borrower additional time to refinance or sell the collateral property in order to repay the principal balance of the loan. Such extensions are generally made at the loan’s contractual interest rate and may require an extension fee be paid to the Company.

During the three months ended September 30, 2025, the Company made one such modification that is disclosable under ASU 2022-02, Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”), as it was considered an other-than-insignificant payment delay for a borrower experiencing financial difficulty. In this instance, the Company entered into a forbearance and modification agreement with the borrower under a credit loan secured by an office property located in Las Vegas, NV, which extended the maturity date to December 31, 2025, as described above. In addition, the Company agreed to accept $2,250 for the satisfaction of the loan balance plus all accrued and unpaid interest and lender fees. The borrower made a payment of $500 in July 2025 that was applied against the required amounts due. The loan’s modified terms were included in the determination of the CECL reserve as of September 30, 2025. The loan had an amortized cost basis of $2,230, which is net of $3,150 of asset-specific CECL reserve on the loan, representing 0.6% of the Company’s commercial mortgage loans as of September 30, 2025. During the nine months ended September 30, 2025, the Company made two such modifications (one of which is described above) that are disclosable under ASU 2022-02, as those were considered other-than-insignificant payment delays for borrowers experiencing financial difficulty. In the other instance, the Company granted a term extension to February 9, 2026 for a senior loan secured by an office property located in Honolulu, HI described above. The modification provided for $750 in principal paydown and payments toward cash flow reserve deposit and modification fee of $600 and $50, respectively. The modification also provides for the accrued maturity default interest of $631 on the loan as of March 31, 2025 to be repaid as deferred commitment fee upon loan maturity. The loan’s modified terms were included in the determination of the CECL reserve. The loan had an amortized cost basis of $12,700, representing 3.4% of the Company’s commercial mortgage loans as of September 30, 2025.

During the three months ended September 30, 2024, the Company made no such modifications that are disclosable under ASU 2022-02. During the nine months ended September 30, 2024, the Company made one such modification that is disclosable under ASU 2022-02, as it was considered an other-than-insignificant payment delay for a borrower experiencing financial difficulty. In this instance, the Company granted a two-year term extension, which can be further extended by one year subject to certain terms and conditions, for a senior loan secured by an office property located in Charlotte, NC described above. The Company waived maturity default interest of $738 on the loan. No principal was forgiven as a result of the modification. The modification provides for payment-in-kind of any accrued interest that exceeds a per annum rate of 4%. The loan’s modified terms were included in the determination of the CECL reserve. The loan had an amortized cost basis of $22,897, representing 3.6% of the Company’s commercial mortgage loans as of September 30, 2024.

Note 4 – Repurchase Agreements, Credit Facility and Mortgage Loan Payable

Commercial Mortgage Loans

On February 15, 2018, the Company, through a wholly owned subsidiary, entered into a master repurchase agreement (the “Atlas Repo Facility”) with Column Financial, Inc. as administrative agent for certain of its affiliates. As the Company’s business grew, it extended the maturity date of the Atlas Repo Facility. The most recent extension was in November 2023 for a twelve-month term and the maximum advance amount was reduced to $100,000. On February 8, 2023, Column Financial, Inc. and affiliated parties sold and assigned their interest in the Atlas Repo Facility to Atlas Securitized Products Investments 2, L.P. (“Atlas”) with no changes to the terms of the Atlas Repo Facility. Advances under the Atlas Repo Facility accrued interest at a per annum annual rate equal to SOFR plus 2.50% to 3.00% with a 0.15% to 0.25% floor. The Company paid off the outstanding balance on the Atlas Repo Facility in May 2023. The Atlas Repo Facility matured on November 8, 2024 and the Company chose not to extend the facility.

On May 6, 2019, the Company, through a wholly owned subsidiary, entered into an uncommitted master repurchase agreement (the “JPM Repo Facility”) with JPMorgan Chase Bank, National Association (“JPM”). The JPM Repo Facility provides up to $150,000 in advances that the Company expects to use to finance the acquisition or origination of eligible loans and participation interests therein. Advances made prior to December 2021 under the JPM Repo Facility accrue interest at per annum rates equal to the sum of (i) the applicable one-month USD London Interbank Offered Rate (“LIBOR”) index rate plus (ii) a margin of between 1.75% to 2.50% with no floor, depending on the attributes of the purchased assets. Advances made subsequent to December 2021 under the JPM Repo Facility accrue interest at per annum rates equal to the sum of SOFR plus an agreed upon margin. As of September 30, 2025, all of the advances made under the JPM Repo Facility were indexed to SOFR and have margins between 1.85% and 2.85% with a floor between 0.00% to

InPoint Commercial Real Estate Income, Inc.

Notes to Consolidated Financial Statements

September 30, 2025

(Unaudited, dollar amounts in thousands, except per share amounts)

2.00%. In May 2022, the maturity date of the JPM Repo Facility was extended to May 6, 2023. On May 5, 2023, the Company entered into an amendment that extended the maturity date to May 6, 2026, with the option to extend the maturity date further to May 6, 2028 subject to two optional one-year extensions. The amendment also increased the maximum facility amount to $526,076. The Company used the increased capacity to pay off the balance on the Atlas Repo Facility. The JPM Repo Facility is subject to certain financial covenants. The Company was in compliance with all financial covenant requirements as of September 30, 2025 and December 31, 2024.

On March 10, 2021, the Company, through a wholly owned subsidiary, entered into a loan and security agreement and a promissory note (collectively, the “WA Credit Facility”) with Western Alliance Bank (“Western Alliance”). The WA Credit Facility provided for loan advances up to the lesser of $75,000 or the borrowing base. The borrowing base consisted of eligible assets pledged to and accepted by Western Alliance in its discretion up to the lower of (i) 60% to 70% of loan-to-unpaid balance or (ii) 45% to 50% of the loan-to-appraised value (depending on the property type underlying the asset, for both (i) and (ii)). Assets that would otherwise be eligible became ineligible after being pledged as part of the borrowing base for 36 months. Advances under the WA Credit Facility accrued interest at an annual rate equal to one-month LIBOR plus 3.25% with a floor of 0.75%. The initial maturity date of the WA Credit Facility was March 10, 2023. On March 9, 2023, the Company extended the maturity date of the WA Credit Facility to March 10, 2025, modified that loan advances are up to the lesser of $40,000 or the borrowing base, and changed the index rate from LIBOR to SOFR. In addition, the spread increased to 3.50% and the floor to 2.50%. The Company had an option to convert the loan made pursuant to the WA Credit Facility upon its initial maturity to a term loan with the same interest rate and floor and a maturity of two years in exchange for, among other things, a conversion fee of 0.25% of the outstanding amount at the time of conversion. The WA Credit Facility required maintenance of an average unrestricted aggregate deposit account balance with Western Alliance of not less than $3,750, until the calendar quarter ended on June 30, 2023 and not less than $5,000 commencing with the calendar quarter ended on September 30, 2023. Failure to meet the minimum deposit balance resulted in, among other things, the interest rate of the WA Credit Facility increasing by 0.50% per annum for each quarter in which the compensating balances were not maintained. The Company paid off the outstanding balance on the WA Credit Facility in May 2024. The Company decided the WA Credit Facility was no longer necessary and chose not to renew it when it matured on March 10, 2025.

The JPM Repo Facility, Atlas Repo Facility (prior to its maturity) and WA Credit Facility (prior to its maturity) (collectively, the “Facilities”) have been, and continue to be (in the case of the JPM Repo Facility), used to finance eligible loans and each act in the manner of a revolving credit facility that can be repaid as the Company’s assets are paid off and re-drawn as advances against new assets.

The details of the Facilities as of September 30, 2025 and December 31, 2024 are as follows:


September 30, 2025									Weighted Average
	Committed Financing		Amount Outstanding (1)		Accrued Interest Payable		Collateral Pledged		Interest Rate			Days to Maturity
JPM Repo Facility	$	526,076	$	242,270	$	576	$	340,388		6.58	%		949
Total Repurchase Facilities — commercial mortgage loans	$	526,076	$	242,270	$	576	$	340,388		6.58	%		949


December 31, 2024									Weighted Average
	Committed Financing		Amount Outstanding (1)		Accrued Interest Payable		Collateral Pledged		Interest Rate			Days to Maturity
JPM Repo Facility	$	526,076	$	360,677	$	958	$	496,287		6.79	%		1,222
Total Repurchase Facilities — commercial mortgage loans		526,076		360,677		958		496,287		6.79	%		1,222
WA Credit Facility		40,000		—		—		—		—			69
	$	566,076	$	360,677	$	958	$	496,287		6.79	%		1,222

(1)

Excluding $0 of unamortized debt issuance costs as of September 30, 2025 and December 31, 2024.

InPoint Commercial Real Estate Income, Inc.

Notes to Consolidated Financial Statements

September 30, 2025

(Unaudited, dollar amounts in thousands, except per share amounts)

Mortgage Loan Payable

On September 30, 2025, the Company entered into a mortgage loan agreement with Ladder Capital Finance LLC for an aggregate principal amount of $24,500. The mortgage loan is collateralized by the Company’s multifamily REO asset located in Kansas City, MO. As of September 30, 2025, the Company had $24,500 outstanding under the mortgage loan. The mortgage loan bears interest at a rate equal to the greater of (a) SOFR plus 2.95% or (b) a floor rate of 6.20% per annum. The mortgage loan requires interest-only payments until the maturity date, at which point the outstanding principal and interest are due. The maturity date of the mortgage loan is October 6, 2027, and the Company has the option to extend the maturity date for up to three additional one-year periods, subject to the payment of an extension fee, certain costs and expenses and certain other conditions. The mortgage loan contains customary default provisions including failure to pay amounts when due.

Debt issuance costs for the mortgage loan are amortized as a component of interest expense. These costs are reported as a direct deduction to the Company’s outstanding mortgage loan payable. As of September 30, 2025, the carrying value of the mortgage loan payable was $23,804.

Note 5 – Loan Participations Sold, Net

On November 15, 2021, the Company sold a non-recourse senior participation interest in nine first mortgage loans to a third party. Under the loan participation agreement, in the event of default by the underlying mortgagor, any amounts paid are first allocated to the third party before any amounts are allocated to the Company’s subordinate interest. The Company, as the directing participant in the loan participation agreement, is entitled to exercise, without the consent of the third party, each of the consent approval and control rights under the applicable underlying mortgage loan documents with a few exceptions. The Company requires the third party’s approval for any modification or amendment to the loan, a bankruptcy plan for an underlying mortgagor where the third party would incur an out-of-pocket loss, or any transfer of the underlying mortgaged property if the Company’s approval is required by the underlying mortgage documents. The Company remains the directing participant unless certain conditions are met related to losses on the property or if the mortgagor is an affiliate of the Company. In the former case, the Company may post cash or short-term U.S. government securities as collateral to retain the rights of the directing participant.

The third party, as the senior participation interest holder, receives interest and principal payments from the borrower until they receive the amounts to which they are entitled. All expenses or losses on the underlying mortgages are allocated first to the Company and then to the third party. If the underlying mortgage is in default, the Company will have the option to purchase the third party’s participation interest and remove it from the loan participation agreement.

The financing or transfer of a portion of a loan by the non-recourse sale of a senior interest in the loan through a participation agreement generally does not qualify as a sale under GAAP. Therefore, in this instance, the Company presents the whole loan as an asset and the loan participation sold as a liability on the consolidated balance sheet until the loan is repaid. The obligation to pay principal and interest on these liabilities is generally based on the performance of the related loan obligation. The gross presentation of loan participations sold does not impact stockholders’ equity or net income.

On July 2, 2025, the Company acquired legal title to an office property through a non-judicial foreclosure transaction. On July 2, 2024, the Company acquired legal title to two office properties through non-judicial foreclosure transactions. Both the underlying loans were subject to loan participation agreements. Upon foreclosure, the Company is still subject to the participation payments to the third party. Such payments are based on the underlying properties’ net income before depreciation adjusted for any non-cash revenue. If the monthly payment exceeds the interest due under the participation agreement, the excess is paid to the third party and recorded as a reduction of accrued and unpaid interest first and then as a reduction of the principal. If the monthly payment is less than the interest due under the participation agreement, the shortfall is accrued as interest payable. During the three and nine months ended September 30, 2025, the total monthly payments were $559 and $984, respectively, and the interest due under the participation agreements was $602 and $1,223, respectively. As a result, the shortfall of $43 and $239 during the three and nine months ended September 30, 2025, respectively, resulted in an increase in accrued but unpaid interest. The participation payments have been included within interest expense in the accompanying consolidated statements of operations. As of September 30, 2025 and December 31, 2024, the Company had $1,405 and $764, respectively, in accrued but unpaid interest on these properties.

InPoint Commercial Real Estate Income, Inc.

Notes to Consolidated Financial Statements

September 30, 2025

(Unaudited, dollar amounts in thousands, except per share amounts)

The following tables detail the Company’s loan participations sold as of September 30, 2025 and December 31, 2024:


	September 30, 2025
Loan Participations Sold	Count		Principal Balance		Book Value		Yield/Cost (1)	Guarantee (2)	Weighted Average Maximum Maturity (4)
Total Loans		1	$	12,700	$	12,715	SOFR+1.8%	n/a		0.36
Senior participations (3) (5)		3	$	47,141	$	47,141	SOFR+2.0%	n/a		0.36


	December 31, 2024
Loan Participations Sold	Count		Principal Balance		Book Value		Yield/Cost (1)	Guarantee (2)	Weighted Average Maximum Maturity (4)
Total Loans		2	$	36,528	$	29,294	SOFR+3.6%	n/a		0.77
Senior participations (3) (5)		3	$	48,524	$	48,524	SOFR+2.0%	n/a		0.77
____________

(1)

The yield/cost is the present value of all future principal and interest payments on the loan or participation interest and does not include any origination fees or deferred commitment fees. The yield/cost excludes maturity default interest and interest on loans placed on nonaccrual status.

(2)

As of September 30, 2025 and December 31, 2024, the loan participations sold were non-recourse to the Company.

(3)

During the nine months ended September 30, 2025 and 2024, the Company recorded $2,252 and $2,673, respectively, of interest expense related to loan participations sold.

(4)

Based on the furthest maximum maturity date of all the loans subject to the participation agreement.

(5)

Includes participation interest related to the foreclosed properties described above.

Note 6 – Stockholders’ Equity

Preferred Stock Offering

On September 22, 2021, the Company issued and sold 3,500,000 shares of the Series A Preferred Stock at a public offering price of $25.00 per share. In addition, on October 15, 2021, Raymond James & Associates, Inc., as representative of the underwriters, partially exercised their over-allotment option to purchase an additional 100,000 shares of Series A Preferred Stock. The Series A Preferred Stock were issued and sold pursuant to an effective registration statement on Form S-11 (File No. 333-258802) filed with the SEC. The Company received net proceeds of approximately $86,310, after underwriter’s discount and issuance costs, and contributed the net proceeds to the Operating Partnership in exchange for an equivalent number of Series A units in the Operating Partnership.

Dividends on the Series A Preferred Stock are cumulative and payable quarterly in arrears at a rate per annum equal to 6.75% per annum of the $25.00 liquidation preference (the “Initial Rate”). Subject to certain exceptions, upon a Downgrade Event (as such terms are defined in the Articles Supplementary designating the Series A Preferred Stock (the “Articles Supplementary”)) or where any shares of the Series A Preferred Stock remain outstanding after September 22, 2026, the Series A Preferred Stock will thereafter accrue cumulative cash dividends at a rate higher than the Initial Rate.

Subject to certain exceptions, upon the occurrence of a Change of Control, each holder of shares of Series A Preferred Stock will have the right to convert some or all of the Series A Preferred Stock held by such holder into a number of the Company’s shares of Class I common stock as provided for in the Articles Supplementary.

The Company may not redeem the Series A Preferred Stock prior to September 22, 2026, except in limited circumstances relating to maintaining the Company’s qualification as a REIT and in connection with a Change of Control. On and after September 22, 2026, the Company may, at its option, redeem the Series A Preferred Stock, in whole or from time-to-time in part, at a price of $25.00 per share of Series A Preferred Stock plus an amount equal to accrued and unpaid dividends (whether or not declared), if any. The Series A Preferred Stock has no maturity date and will remain outstanding indefinitely unless redeemed by the Company or converted by the holder pursuant to its terms (as set forth in the Articles Supplementary).

InPoint Commercial Real Estate Income, Inc.

Notes to Consolidated Financial Statements

September 30, 2025

(Unaudited, dollar amounts in thousands, except per share amounts)

On August 11, 2022, the Board authorized and approved a share repurchase program (the “Series A Preferred Repurchase Program”) pursuant to which the Company was permitted to repurchase up to the lesser of 1,000,000 shares or $15,000 of the outstanding shares of the Company’s Series A Preferred Stock through December 31, 2022. On November 10, 2022, the Board approved to extend the Series A Preferred Repurchase Program through December 31, 2023. Under the Series A Preferred Repurchase Program, repurchases of shares of the Company’s Series A Preferred Stock were to be made at management’s discretion from time to time through open market purchases, privately-negotiated transactions, block purchases or otherwise in accordance with applicable federal securities laws. On January 30, 2023, the Board approved the termination of the Series A Preferred Repurchase Program.

The Series A Preferred Stock is listed on the New York Stock Exchange under the symbol ICR PR A.

Share Activity for Common Stock and Preferred Stock

The following tables detail the change in the Company’s outstanding shares of all classes of common and preferred stock, including restricted common stock:


	Preferred Stock		Common Stock
Nine months ended September 30, 2025	Series A		Class P		Class A		Class T		Class S		Class D		Class I
Beginning balance		3,544,553		8,562,777		745,881		290,345		—		48,015		470,980
Issuance of restricted shares		—		—		—		—		—		—		1,871
Ending balance		3,544,553		8,562,777		745,881		290,345		—		48,015		472,851


	Preferred Stock		Common Stock
Nine months ended September 30, 2024	Series A		Class P		Class A			Class T		Class S		Class D		Class I
Beginning balance		3,544,553		8,562,777		745,887			290,345		—		48,015		469,168
Issuance of restricted shares		—		—		—			—		—		—		1,812
Administrative correction		—		—		(6	)		—		—		—		—
Ending balance		3,544,553		8,562,777		745,881			290,345		—		48,015		470,980

InPoint Commercial Real Estate Income, Inc.

Notes to Consolidated Financial Statements

September 30, 2025

(Unaudited, dollar amounts in thousands, except per share amounts)

Distributions – Common Stock and Series A Preferred Stock

The table below presents the aggregate annualized and monthly distributions declared on common stock by record date for all classes of shares since January 1, 2024.


Record date	Aggregate annualized gross distribution declared per share		Aggregate monthly gross distribution declared per share
January 31, 2024	$	1.2500	$	0.1042
February 29, 2024	$	1.2500	$	0.1042
March 31, 2024	$	1.2500	$	0.1042
April 30, 2024	$	1.2500	$	0.1042
May 31, 2024	$	1.2500	$	0.1042
June 30, 2024	$	1.2500	$	0.1042
July 31, 2024	$	1.2500	$	0.1042
August 31, 2024	$	1.2500	$	0.1042
September 30, 2024	$	1.2500	$	0.1042
October 31, 2024	$	1.2500	$	0.1042
November 30, 2024	$	1.2500	$	0.1042
December 31, 2024	$	1.2500	$	0.1042
January 31, 2025	$	1.2500	$	0.1042
February 28, 2025	$	1.2500	$	0.1042
March 31, 2025	$	1.2500	$	0.1042
April 30, 2025	$	1.2500	$	0.1042
May 31, 2025	$	1.2500	$	0.1042
June 30, 2025	$	1.2500	$	0.1042
July 31, 2025	$	1.2500	$	0.1042
August 31, 2025	$	1.2500	$	0.1042
September 30, 2025	$	1.2500	$	0.1042

The gross distribution was reduced each month for Class D and Class T of the Company’s common stock for applicable class-specific stockholder servicing fees to arrive at a lower net distribution amount paid to those classes. For a description of the stockholder servicing fees applicable to Class D, Class S and Class T shares of the Company’s common stock, please see “Note 10 – Transactions with Related Parties” below. Since the IPO and through September 30, 2025, the Company had not issued any shares of Class S common stock.

InPoint Commercial Real Estate Income, Inc.

Notes to Consolidated Financial Statements

September 30, 2025

(Unaudited, dollar amounts in thousands, except per share amounts)

The following table shows the monthly net distribution per share for shares of Class D and Class T common stock since January 1, 2024.


Record date	Monthly net distribution declared per share of Class D common stock		Monthly net distribution declared per share of Class T common stock
January 31, 2024	$	0.1006	$	0.0919
February 29, 2024	$	0.1008	$	0.0927
March 31, 2024	$	0.1006	$	0.0920
April 30, 2024	$	0.1007	$	0.0925
May 31, 2024	$	0.1006	$	0.0921
June 30, 2024	$	0.1008	$	0.0925
July 31, 2024	$	0.1006	$	0.0921
August 31, 2024	$	0.1007	$	0.0922
September 30, 2024	$	0.1008	$	0.0926
October 31, 2024	$	0.1007	$	0.0922
November 30, 2024	$	0.1008	$	0.0926
December 31, 2024	$	0.1007	$	0.0922
January 31, 2025	$	0.1007	$	0.0923
February 28, 2025	$	0.1010	$	0.0934
March 31, 2025	$	0.1007	$	0.0923
April 30, 2025	$	0.1008	$	0.0928
May 31, 2025	$	0.1007	$	0.0925
June 30, 2025	$	0.1009	$	0.0929
July 31, 2025	$	0.1007	$	0.0924
August 31, 2025	$	0.1007	$	0.0924
September 30, 2025	$	0.1009	$	0.0929

Series A Preferred Stock dividends are paid quarterly in arrears based on an annualized distribution rate of 6.75% of the $25.00 per share liquidation preference, or $1.6875 per share per annum.

The tables below present the aggregate distributions declared per share for each applicable class of common stock and preferred stock during the nine months ended September 30, 2025 and 2024. The tables exclude distributions declared for any month for a class of shares of stock when there were no shares of that class outstanding on the applicable record date.


	Preferred Stock		Common Stock
Nine months ended September 30, 2025	Series A		Class P		Class A		Class T		Class S		Class D		Class I
Aggregate gross distributions declared per share	$	1.2656	$	0.9378	$	0.9378	$	0.9378	$	—	$	0.9378	$	0.9378
Stockholder servicing fee per share	N/A		N/A		N/A			0.1039		—		0.0307	N/A
Net distributions declared per share	$	1.2656	$	0.9378	$	0.9378	$	0.8339	$	—	$	0.9071	$	0.9378

	Preferred Stock		Common Stock
Nine months ended September 30, 2024	Series A		Class P		Class A		Class T		Class S		Class D		Class I
Aggregate gross distributions declared per share	$	1.2656	$	0.9378	$	0.9378	$	0.9378	$	—	$	0.9378	$	0.9378
Stockholder servicing fee per share	N/A		N/A		N/A			0.1072		—		0.0316	N/A
Net distributions declared per share	$	1.2656	$	0.9378	$	0.9378	$	0.8306	$	—	$	0.9062	$	0.9378

As of September 30, 2025 and December 31, 2024, distributions declared but not yet paid amounted to $1,052 and $1,051, respectively.

InPoint Commercial Real Estate Income, Inc.

Notes to Consolidated Financial Statements

September 30, 2025

(Unaudited, dollar amounts in thousands, except per share amounts)

Note 7 – Net Income (Loss) Per Share Attributable to Common Stockholders

Basic earnings per share attributable to common stockholders (“EPS”) is computed by dividing net income (loss) attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS is computed by dividing net income (loss) attributable to common stockholders by the common shares plus common share equivalents. The Company’s common share equivalents are unvested restricted shares. The Company excludes antidilutive restricted shares from the calculation of weighted-average shares for diluted earnings per share. There were zero antidilutive restricted shares for the three and nine months ended September 30, 2025. There were zero and 458 antidilutive restricted shares for the three and nine months ended September 30, 2024, respectively. For further information about the Company’s restricted shares, see “Note 11 – Equity-Based Compensation.”

The following table is a summary of the basic and diluted net income (loss) per share attributable to common stockholders computation for the three and nine months ended September 30, 2025 and 2024:


	Three months ended September 30,						Nine months ended September 30,
	2025			2024			2025			2024
Net (loss) income attributable to common stockholders	$	(9,136	)	$	(880	)	$	(5,106	)	$	4,518
Weighted average shares outstanding, basic		10,118,262			10,116,561			10,118,087			10,116,315
Dilutive effect of restricted stock		—			—			—			1,376
Weighted average shares outstanding, diluted		10,118,262			10,116,561			10,118,087			10,117,691
Net (loss) income attributable to common stockholders per share, basic and diluted	$	(0.90	)	$	(0.09	)	$	(0.50	)	$	0.45

Note 8 – Commitments and Contingencies

In the ordinary course of business, the Company may become subject to litigation, claims and regulatory matters. The Company has no knowledge of material legal or regulatory proceedings pending or known to be contemplated against the Company at this time.

The Company has made a commitment to advance additional funds under certain of its CRE loans if the borrower meets certain conditions. As of September 30, 2025, the Company had 8 such loans with a total remaining future funding commitment of $5,969. As of December 31, 2024, the Company had 14 such loans with a total remaining future funding commitment of $10,615. The Company could advance future funds at its discretion if requested by the borrower and the borrower meets certain requirements as specified in individual loan agreements.

Note 9 – Segment Reporting

The Company operates as one reportable segment, as defined by GAAP, which originates and acquires mortgage loans and related assets for the nine months ended September 30, 2025 and 2024. The segment derives its income primarily from interest from its portfolio of commercial mortgage loans secured by real estate and related assets. The accounting policies of the segment are the same as those described in the summary of significant accounting policies for the Company. The chief operating decision maker (“CODM”) assesses performance for the segment and decides how to allocate resources based on net interest income and net income (loss) which are reported on the accompanying consolidated statements of operations as net interest income and net income (loss), respectively. All the significant segment expenses that are provided to the CODM are reported in the accompanying consolidated statements of operations. The measure of segment assets is reported on the balance sheet as total assets. The Company’s CODM is its Chief Executive Officer.

Note 10 – Transactions with Related Parties

As of September 30, 2025, the Advisor had invested $1,000 in the Company through the purchase of 40,040 Class P shares. The purchase price per Class P share for the Advisor’s investment was equal to $25.00. The Advisor has agreed that, for so long as it or its affiliate is serving as the Company’s advisor, (i) it will not sell or transfer at least 8,000 of the Class P shares that it has purchased, accounting for $200 of its investment, to an unaffiliated third party and (ii) repurchase requests made for these Class P shares will only be accepted (a) on the last business day of a calendar quarter, (b) after all repurchase requests from all other stockholders for such quarter have been accepted and (c) to the extent that such repurchases do not cause total repurchases in the quarter in which they are being repurchased to exceed that quarter’s repurchase cap.

InPoint Commercial Real Estate Income, Inc.

Notes to Consolidated Financial Statements

September 30, 2025

(Unaudited, dollar amounts in thousands, except per share amounts)

As of September 30, 2025, Sound Point Capital Management, LP (“Sound Point”), an affiliate of the Sub-Advisor, had invested $3,000 in the Company through the purchase of 120,000 Class P shares. The purchase price per Class P share for the Sub-Advisor’s investment was $25.00. Sound Point has agreed that, for so long as the Sub-Advisor or its affiliate is serving as the Company’s sub-advisor, repurchase requests made for these Class P shares will only be accepted (a) on the last business day of a calendar quarter, (b) after all repurchase requests from all other stockholders for such quarter have been accepted and (c) to the extent that such repurchases do not cause total repurchases in the quarter in which they are being repurchased to exceed that quarter’s repurchase cap.

The following table summarizes the Company’s related party transactions for the three and nine months ended September 30, 2025 and 2024 and the amount due to related parties as of September 30, 2025 and December 31, 2024:


	Three months ended September 30,				Nine months ended September 30,				Payable as of September 30,		Payable as of December 31,
	2025		2024		2025		2024		2025		2024
Organization and offering expense reimbursement (1)	$	—	$	—	$	—	$	2	$	—	$	—
Advisory fee (2)		780		797		2,353		2,401		256		265
Loan fees(3)		109		16		282		100		493		734
Accrued stockholder servicing fee (4)		—		—		—		—		388		408
Total	$	889	$	813	$	2,635	$	2,503	$	1,137	$	1,407

(1)

The Company reimburses the Advisor, the Sub-Advisor and their respective affiliates for costs and other expenses related to the Public Offerings, provided the Advisor has agreed to reimburse the Company to the extent that the organization and offering expenses related to the Public Offerings that the Company incurs exceeds 15% of its gross proceeds from the Public Offerings. Pursuant to the Sub-Advisory Agreement, the Sub-Advisor is responsible for reimbursing the Advisor for a proportionate share of certain of these costs. As of September 30, 2025, the total reimbursement of offering costs from the Advisor was $1,023, of which $555 remains receivable. This receivable is reported on the accompanying consolidated balance sheet as due from related parties.

(2)

The Advisor is entitled to receive an advisory fee comprised of two separate components: (a) a fixed component payable monthly and (b) a performance component payable annually. The fixed component of the advisory fee is paid in an amount equal to 1/12th of 1.25% of the Company’s average NAV for each month, paid monthly in arrears. The performance component of the advisory fee is calculated and paid annually, such that for any year in which the Company’s total return per share exceeds 7% per annum, the Advisor will receive 20% of the excess total return allocable to shares of the Company’s common stock; provided that in no event will the performance fee exceed 15% of the aggregate total return allocable to shares of the Company’s common stock for such year. In addition, if the NAV per share decreases below $25 for any class of shares during the measurement period, any subsequent increase in NAV per share to $25 (or such other adjusted number) will not be included in the calculation of the performance component with respect to that class. The Advisor pays fees to the Sub-Advisor for the services it delegates to the Sub-Advisor or may direct the Company to pay a portion of the fees otherwise payable to the Advisor directly to the Sub-Advisor.

(3)

The Company pays the Advisor all new loan origination and administrative fees related to CRE loans held for investment, to the extent that such fees are paid by the borrower. Pursuant to the Sub-Advisory Agreement, the Advisor generally will reallow a portion of loan fees and all administrative fees to the Sub-Advisor.

(4)

Subject to the Financial Industry Regulatory Authority, Inc. limitations on underwriting compensation, the Company pays Inland Securities Corporation (the “Dealer Manager”) selling commissions over time as stockholder servicing fees for ongoing services rendered to stockholders by participating broker-dealers or broker-dealers servicing stockholders’ accounts as follows: (a) for Class T shares only, 0.85% per annum of the NAV of the Class T shares; (b) for Class S shares only, 0.85% per annum of the aggregate NAV for the Class S shares; and (c) for Class D shares only, 0.25% per annum of the aggregate NAV for the Class D shares. The Company will cease paying the stockholder servicing fee with respect to any Class T share, Class S share or Class D share held in a stockholder’s account upon the occurrence of certain events. The Company accrued the full cost of the stockholder servicing fee as an offering cost at the time the Company sold Class T, Class S, and Class D shares in the Public Offerings. 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.

InPoint Commercial Real Estate Income, Inc.

Notes to Consolidated Financial Statements

September 30, 2025

(Unaudited, dollar amounts in thousands, except per share amounts)

Note 11 – Equity-Based Compensation

With each stock grant, the Company awards each of its three independent directors an equal number of restricted shares. The table below summarizes total stock grants as of September 30, 2025 with a vesting date after January 1, 2024.

Grant Date

Class of common stock granted

Total number of shares granted

Grant Date Fair Value Per Share

Total Fair Value of Grant

Proportion of total shares that vest annually

Vesting Date Year 1

Vesting Date Year 2

Vesting Date Year 3

October 14, 2021

Class I

1,477

20.31

30

1/3

10/14/2022

10/14/2023

10/14/2024

October 3, 2022

Class I

1,534

19.55

30

1/3

10/3/2023

10/3/2024

10/3/2025

September 29, 2023

Class I

1,722

17.42

30

1/3

9/29/2024

9/29/2025

9/29/2026

September 12, 2024

Class I

1,812

16.56

30

1/3

9/12/2025

9/12/2026

9/12/2027

September 18, 2025

Class I

1,871

16.03

30

1/3

9/18/2026

9/18/2027

9/18/2028

Under the Company’s Independent Director Restricted Share Plan (the “RSP”), restricted shares generally vest over a three-year vesting period from the date of the grant, subject to the specific terms of the grant. Restricted shares are included in common stock outstanding on the grant date. The grant-date value of the restricted shares is amortized over the vesting period representing the requisite service period. Compensation expense associated with the restricted shares issued to the independent directors was $8 and $23, in the aggregate, for the three and nine months ended September 30, 2025, respectively. Compensation expense associated with the restricted shares issued to the independent directors was $8 and $23, in the aggregate, for the three and nine months ended September 30, 2024, respectively. As of September 30, 2025, the Company had $60 of unrecognized compensation expense related to the unvested restricted shares, in the aggregate. The weighted average remaining period that compensation expense related to unvested restricted shares will be recognized is 1.4 years. The total fair value at the vesting date for restricted shares that vested during the nine months ended September 30, 2025 and 2024 was $19 and $9, respectively.

A summary table of the status of the restricted shares granted under the RSP is presented below:


	Restricted Shares			Weighted Average Grant Date Fair Value Per Share
Outstanding at December 31, 2024		3,471		$	17.29
Granted		1,871			16.03
Vested		(1,178	)		16.98
Converted		—			—
Forfeited		—			—
Outstanding at September 30, 2025		4,164		$	16.81

InPoint Commercial Real Estate Income, Inc.

Notes to Consolidated Financial Statements

September 30, 2025

(Unaudited, dollar amounts in thousands, except per share amounts)

Note 12 – Fair Value of Financial Instruments

GAAP requires the disclosure of fair value information about financial instruments, whether or not they are recognized at fair value in the consolidated balance sheets, for which it is practicable to estimate that value. The following table details the carrying amount and estimated fair value of the Company’s financial instruments at the dates below:


	September 30, 2025				December 31, 2024
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Financial assets
Cash, cash equivalents and restricted cash	$	73,866	$	73,866	$	64,549	$	64,549
Commercial mortgage loans, net		375,387		375,387		549,173		549,173
Total	$	449,253	$	449,253	$	613,722	$	613,722
Financial liabilities
Repurchase agreements — commercial mortgage loans	$	242,270	$	242,270	$	360,677	$	360,677
Loan participations — sold		47,141		47,141		48,524		48,524
Mortgage loan payable, net		23,804		23,804		—		—
Total	$	313,215	$	313,215	$	409,201	$	409,201

The following describes the Company’s methods for estimating the fair value for financial instruments:

•

The estimated fair values of restricted cash, cash and cash equivalents were based on the bank balance and was a Level 1 fair value measurement.

•

The estimated fair value of commercial mortgage loans, net is a Level 3 fair value measurement. The majority of the loans are floating rate and as such the interest rates on such loans reflect the current interest rate spreads. Additionally, since the loans have a short duration to maturity (0.5 years), are not delinquent or impaired (except for one loan impaired as of September 30, 2025 and December 31, 2024, for which an asset-specific CECL reserve has been recorded) and are expected to return to par, the Advisor determined the amortized cost, less allowance for credit losses, is the best estimate of fair value for all loans. The allowance for credit losses includes the analytical portion as well as the asset-specific component of the CECL reserve.

For the impaired loan as of September 30, 2025, which was also impaired as of December 31, 2024, the CECL reserve was recorded based on the expected proceeds from the loan. This loan is therefore measured at fair value on a nonrecurring basis using significant unobservable inputs and is classified as a Level 3 asset in the fair value hierarchy. As of September 30, 2025 and December 31, 2024, the significant unobservable input used to estimate the fair value of this loan is the expected loss based on a possible repayment amount that the Company has negotiated with the borrower.

•

The estimated fair values of repurchase agreements – commercial mortgage loans and loan participations sold are Level 3 fair value measurements based on expected present value techniques. This method discounts future estimated cash flows using rates the Company determined best reflect current market interest rates that would be offered for repurchase agreements and loan participations sold with similar characteristics and credit quality. The carrying value of these instruments approximates fair value as the fair value of these instruments is not materially sensitive to shifts in market interest rates because of the floating interest rates on these instruments.

•

The estimated fair value of the mortgage loan payable, net is a Level 3 fair value measurement. The loan was recorded at transaction proceeds, which is considered to be the best initial estimate of fair value.

Note 13 – Real Estate Owned

2025 Acquisitions

During the nine months ended September 30, 2025, the Company acquired one multifamily property located in Kansas City, MO and one office property located in Charlotte, NC, through non-judicial foreclosure transactions. The properties previously collateralized two

InPoint Commercial Real Estate Income, Inc.

Notes to Consolidated Financial Statements

September 30, 2025

(Unaudited, dollar amounts in thousands, except per share amounts)

senior loans. The acquisitions were accounted for as asset acquisitions under applicable GAAP guidance. The properties were recorded on the Company’s consolidated balance sheet based on the estimated fair value at acquisition. The Company’s fair market value estimate was determined based on appraisals performed by independent third-party appraisers.

The following table shows additional information about the acquisitions, including the fair value of the assumed assets and liabilities on the acquisition dates:


	Kansas City, MO		Charlotte, NC
Acquisition date	May 1, 2025		July 2, 2025
Number of properties	1		1
Property type	Multifamily		Office
Amortized cost basis of loan as of acquisition date	$	38,933	$	22,892
CECL reserve as of acquisition date	$	68	$	2,311
Loan risk rating as of acquisition date	5		5
CECL reserve charge-off upon acquisition	$	68	$	2,311

Land	$	1,778	$	6,620
Building and improvements		35,123		10,733
Furniture, fixtures and equipment		1,185		—
Acquired in-place lease value		773		2,866
Acquired above-market lease value		—		231
Acquired below-market lease value		—		(325	)
Total	$	38,859	$	20,125

The Company recognized a net gain of $531 upon the foreclosure transactions, which represents total assets received, net of liabilities assumed, less carrying value of loans adjusted for interest, extension fee and CECL reserve. The net gain is reported on the accompanying consolidated statements of operations within net realized (loss) gain on disposition of commercial loans.

On July 14, 2025, the Company entered into a contract for sale of the Kansas City property for a purchase price of $40,100 and received $780 earnest money in escrow from the buyer on July 18, 2025. The buyer subsequently determined not to proceed with the transaction, resulting in termination of the contract and return of the earnest money to the buyer.

2024 Acquisitions

During the year ended December 31, 2024, the Company acquired legal title to two office properties, one located in Addison, TX, and the other located in Irving, TX, and one multifamily property located in Portland, OR through non-judicial foreclosure transactions. The properties previously collateralized two senior loans. The acquisitions were accounted for as asset acquisitions under applicable GAAP guidance, and the Company intends to hold these properties as real estate held for use with the intent to eventually sell when the market improves. The properties were recorded on the Company’s consolidated balance sheet based on the estimated fair value at acquisition. The Company’s fair market value estimate was determined based on appraisals performed by independent third-party appraisers.

InPoint Commercial Real Estate Income, Inc.

Notes to Consolidated Financial Statements

September 30, 2025

(Unaudited, dollar amounts in thousands, except per share amounts)

The following table shows additional information about the acquisitions, including the fair value of the assumed assets and liabilities on the acquisition dates:


	Addison and Irving, TX			Portland, OR
Acquisition date	July 2, 2024			October 23, 2024
Number of properties	2			1
Property type	Office			Multifamily
Amortized cost basis of loan as of acquisition date	$	24,411		$	29,476
CECL reserve as of acquisition date	$	281		$	9,884
Loan risk rating as of acquisition date	5			5
CECL reserve charge-off upon acquisition	$	855		$	9,577

Land	$	3,858		$	1,975
Building and improvements		17,071			16,989
Furniture, fixtures and equipment		—			343
Acquired in-place lease value		3,526			285
Acquired above-market lease value		31			—
Acquired below-market lease value		(451	)		—
Total	$	24,035		$	19,592

Real Estate Owned

The following table presents the REO assets as of September 30, 2025 and December 31, 2024:


	September 30, 2025			December 31, 2024
Land	$	14,231		$	5,833
Building and improvements		80,065			34,122
Furniture, fixtures and equipment		1,667			343
Accumulated depreciation		(2,549	)		(665	)
Real estate owned, net	$	93,414		$	39,633

During the three and nine months ended September 30, 2025 the Company incurred $864 and $1,884 of depreciation expense, respectively. During both the three and nine months ended September 30, 2024 the Company incurred $282 of depreciation expense.

Acquired Intangible Assets and Liabilities

The following table summarizes the Company’s identified intangible assets and liabilities as of September 30, 2025 and December 31, 2024:


	September 30, 2025			December 31, 2024
Intangible assets:
Acquired in-place lease value	$	7,450		$	3,811
Acquired above-market lease value		262			31
Accumulated amortization		(3,056	)		(873	)
Acquired lease intangible assets, net	$	4,656		$	2,969
Intangible liabilities:
Acquired below-market lease value	$	776		$	451
Accumulated amortization		(137	)		(47	)
Acquired lease intangible liabilities, net	$	639		$	404

As of September 30, 2025, the remaining weighted-average amortization period for the acquired in-place lease intangibles of the properties acquired during the nine months ended September 30, 2025 was 4.1 years.

InPoint Commercial Real Estate Income, Inc.

Notes to Consolidated Financial Statements

September 30, 2025

(Unaudited, dollar amounts in thousands, except per share amounts)

Amortization pertaining to acquired in-place lease value, above-market lease value and below-market lease value is summarized below:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2025			2024			2025			2024
Amortization recorded as amortization expense:
Acquired in-place lease value	$	960		$	374		$	2,149		$	374
Amortization recorded as a (reduction) increase to rental income:
Acquired above-market leases	$	(23	)	$	(5	)	$	(34	)	$	(5	)
Acquired below-market leases		42			24			90			24
Net rental income increase	$	19		$	19		$	56		$	19

Estimated amortization of the respective intangible lease assets and liabilities as of September 30, 2025 for each of the five succeeding years and thereafter is as follows:


	In-Place Leases		Above-Market Leases		Below-Market Leases
2025 (remainder of year)	$	526	$	20	$	41
2026		1,306		73		160
2027		1,058		61		153
2028		709		34		123
2029		373		9		88
Thereafter		466		21		74
Total	$	4,438	$	218	$	639

Rental Revenue as a Lessor

The table below presents the future minimum lease payments to be received under non-cancelable operating leases, excluding tenant reimbursements of expenses, and assuming no expiring leases are renewed, as of September 30, 2025. Leases for the multifamily properties are generally 12 months or less and are therefore excluded from the table below.


	Lease Payments
2025 (remainder of year)	$	1,122
2026		4,203
2027		3,701
2028		2,854
2029		1,963
Thereafter		3,109
Total	$	16,952

Note 14 – Subsequent Events

The Company has evaluated subsequent events through November 7, 2025, the date the consolidated financial statements were issued, and determined that there have not been any events that have occurred that would require adjustments to disclosures in the consolidated financial statements except for the following transactions:

InPoint Commercial Real Estate Income, Inc.

Notes to Consolidated Financial Statements

September 30, 2025

(Unaudited, dollar amounts in thousands, except per share amounts)

Common Stock Distributions

On October 30, 2025, the Company announced that the Board authorized distributions to stockholders of record as of October 31, 2025, payable on or about November 18, 2025 for each class of its common stock in the amount per share set forth below:


	Common Stock
	Class P		Class A		Class T		Class S		Class D		Class I
Aggregate gross distributions declared per share	$	0.1042	$	0.1042	$	0.1042	$	—	$	0.1042	$	0.1042
Stockholder servicing fee per share	N/A		N/A			0.0112		—		0.0033	N/A
Net distributions declared per share	$	0.1042	$	0.1042	$	0.0930	$	—	0.1009		$	0.1042

Floating vs. Fixed Rate Debt Investments:


September 30, 2025	December 31, 2024

All Investments by Type:


September 30, 2025	December 31, 2024

Loans by Property Type:


September 30, 2025	December 31, 2024

Loans by Region:


September 30, 2025	December 31, 2024

An investment’s region is defined according to the below map based on the location of underlying property.

The changes in our loan portfolio by property type and by region as of September 30, 2025 compared to December 31, 2024 were primarily due to the transfer of two loans to REO upon foreclosures, the sale of one loan, and the repayment of loans by borrowers in ordinary course.

Commercial Mortgage Loans Held for Investment


	As of September 30, 2025			As of December 31, 2024
Principal balance of first mortgage loans	$	369,577		$	549,303
Number of first mortgage loans		16			23
Principal balance of credit loans	$	12,880		$	13,380
Number of credit loans		2			2
Total balance of loans	$	382,457		$	562,683
Total number of loans		18			25
All-in yield (1)		7.4	%		7.6	%
Weighted average years to maximum maturity		1.2			1.8
____________

(1)

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. All-in yield also excludes the all-in yield for loans placed on nonaccrual status. All-in yield is calculated using the spread plus the values of the indices as of September 30, 2025.

The decrease in the size of our portfolio is primarily due to loan payoffs, sale of one loan and foreclosure of two loans with no new loans originated during the nine months ended September 30, 2025. The decrease in the all-in yield was primarily driven by the changes in the composition of loans in the portfolio.

The table below presents select loan information for each of our commercial mortgage loans as of September 30, 2025:


	Origination Date	Loan Type (1)	Principal Balance (2)		Cash Coupon (2)(3)	All-in Yield (2)(3)			Maximum Maturity (4)	State	Property Type	LTV (5)			Risk Rating (6)
1	12/12/17	First mortgage	$	12,700	SOFR+4.70%		8.8	%	2/9/26	HI	Office		67.0	%		3
2	8/15/19	First mortgage		2,862	SOFR+4.20%		8.3	%	11/9/26 (7)	TN	Office		44.6	%		4
3	9/27/19	First mortgage		13,626	SOFR+3.10%		7.2	%	10/9/25 (8)	CA	Office		74.5	%		3
4	11/12/21	First mortgage		25,696	SOFR+2.90%		7.1	%	11/9/26	TX	Multifamily		73.2	%		3
5	11/16/21	First mortgage		24,331	SOFR+3.05%		7.3	%	12/9/25 (9)	TX	Multifamily		73.7	%		3
6	11/17/21	First mortgage		25,625	SOFR+2.85%		7.1	%	12/9/26	SC	Multifamily		71.5	%		3
7	12/9/21	First mortgage		39,217	SOFR+3.05%		7.3	%	12/9/26	GA	Multifamily		71.7	%		2
8	12/15/21	First mortgage		25,656	SOFR+3.20%		7.4	%	1/9/27	OR	Multifamily		70.2	%		2
9	1/26/22	First mortgage		16,040	SOFR+3.55%		7.6	%	10/9/25 (10)	NJ	Industrial		63.1	%		3
10	1/28/22	First mortgage		15,260	SOFR+3.30%		7.4	%	2/9/27	NC	Multifamily		69.9	%		2
11	2/25/22	First mortgage		30,000	SOFR+3.04%		7.2	%	3/9/27	NY	Mixed Use		66.7	%		2
12	3/1/22	First mortgage		29,472	SOFR+3.40%		7.5	%	3/9/27	TX	Multifamily		77.7	%		2
13	4/7/22	First mortgage		15,227	SOFR+3.25%		7.4	%	4/9/27	SC	Multifamily		69.0	%		3
14	4/19/22	First mortgage		20,352	SOFR+3.40%		7.5	%	5/9/26	TX	Multifamily		76.3	%		3
15	6/13/22	First mortgage		51,223	SOFR+3.45%		7.6	%	6/9/27	TX	Multifamily		73.1	%		3
16	11/17/22	First mortgage		22,290	SOFR+3.90%		8.0	%	12/9/27	AL	Multifamily		69.6	%		4
17	9/29/17	Credit		7,500	9.20%		9.2	%	10/11/27	NJ	Office		79.9	%		2
18	10/4/19	Credit		5,380	10.00%	(3)			10/6/24 (11)	NV	Office		75.2	%		5
			$	382,457			7.4	%					71.6	%

(9)

The loan matures on December 9, 2025. The Company reviewed the loan during the quarter ended September 30, 2025 and the estimated value exceeded the loan balance. No asset-specific CECL reserve was recorded as of September 30, 2025.

(10)

In October 2025, the loan maturity date was extended to November 9, 2025.

(11)

The loan has no unfunded commitment and matured on October 6, 2024. The borrower is current on all debt service payments. On July 1, 2025, the Company entered into a forbearance and modification agreement with the borrower which extended the maturity date to December 31, 2025. In addition, the Company agreed to accept $2.3 million for the satisfaction of the loan balance plus all accrued and unpaid interest and lender fees. The borrower made a payment of $0.5 million in July 2025 that was applied

against the required amounts due. The Company has recorded a $3.2 million asset-specific CECL reserve on this loan as of September 30, 2025. The loan has been on nonaccrual status since July 1, 2024.

The following table allocates the loan principal balance and the net loan exposure based on our internal risk ratings as of September 30, 2025:


Risk Rating	Number of Loans		Principal Balance			Net Loan Exposure (1)
1		—	$	—		$	—
2		6		147,105		$	146,281
3		9		204,820		$	192,091
4		2		25,152		$	23,683
5		1		5,380		$	2,230
Total		18	$	382,457		$	364,285
Add: Unamortized (fees)/costs, net			$	1,092
Less: Allowance for credit losses				(8,162	)
Commercial mortgage loans at cost, net			$	375,387

(1) Net loan exposure excludes the amount of loan participation sold. See “Note 5 – Loan Participations Sold, Net.” Further, net loan exposure is calculated net of the CECL reserve recorded on the loans. See “Note 3 – Commercial Mortgage Loans Held for Investment – Allowance for Credit Losses.”

As of September 30, 2025 and December 31, 2024, we had borrowings under repurchase agreements totaling $242,270 and $360,677, respectively, and loan participations sold, net, of $47,141 and $48,524, respectively. During the nine months ended September 30, 2025 and the year ended December 31, 2024, we had weighted average borrowings, which include borrowings under repurchase agreements and loan participations sold, net, of $347,391 and $459,902, respectively, and weighted average borrowing costs, which also include borrowings under repurchase agreements and loan participations sold, net, of 6.7% and 7.7%, respectively.

Real Property

2025 Acquisitions

During the nine months ended September 30, 2025, we acquired a multifamily property in Kansas City, MO (the “Kansas City property”) and the Charlotte property through non-judicial foreclosure transactions. The properties previously collateralized two senior loans. The acquisitions were accounted for as asset acquisitions under applicable GAAP guidance. The properties were recorded on our consolidated balance sheet based on the estimated fair value at acquisition. The fair market value estimate was determined based on appraisals performed by independent third-party appraisers.

The following table shows additional information about the 2025 acquisitions:


	Kansas City, MO		Charlotte, NC
Acquisition date	May 1, 2025		July 2, 2025
Number of properties	1		1
Property type	Multifamily		Office
Amortized cost basis of loan as of acquisition date	$	38,933	$	22,892
CECL reserve as of acquisition date	$	68	$	2,311
Loan risk rating as of acquisition date	5		5
CECL reserve charge-off upon acquisition	$	68	$	2,311

We recognized a net gain of $531 upon the foreclosure transactions, which represents total assets received, net of liabilities assumed, less carrying value of loans adjusted for interest, extension fee and CECL reserve.

On July 14, 2025, we entered into a contract for sale of the Kansas City property for a purchase price of $40,100 and received $780 earnest money in escrow from the buyer on July 18, 2025. The buyer subsequently determined not to proceed with the transaction, resulting in termination of the contract and return of the earnest money to the buyer.

2024 Acquisitions

During the year ended December 31, 2024, we acquired legal title to two office properties, one located in Addison, TX, and the other located in Irving, TX, and one multifamily property located in Portland, OR through non-judicial foreclosure transactions. The properties previously collateralized two senior loans. The acquisitions were accounted for as asset acquisitions under applicable GAAP guidance, and we intend to hold these properties as real estate held for use with the intent to eventually sell when the market improves. The properties were recorded on our consolidated balance sheet based on the estimated fair value at acquisition. The fair market value estimate was determined based on appraisals performed by independent third-party appraisers.

The following table shows additional information about the 2024 acquisitions:


	Addison and Irving, TX		Portland, OR
Acquisition date	July 2, 2024		October 23, 2024
Number of properties	2		1
Property type	Office		Multifamily
Amortized cost basis of loan as of acquisition date	$	24,411	$	29,476
CECL reserve as of acquisition date	$	281	$	9,884
Loan risk rating as of acquisition date	5		5
CECL reserve charge-off upon acquisition	$	855	$	9,577

The following table shows selected data for our real estate in our portfolio as of September 30, 2025:

Property

Acquisition Date

Property Type

Location

Rentable Square Feet (RSF) / Number of Units

% Leased

 REO 1

July 2, 2024

 Office

Addison, TX

141,180

70.3

 REO 2

July 2, 2024

 Office

Irving, TX

100,359

57.3

 REO 3

October 23, 2024

 Multifamily

Portland, OR

64

64.1

 REO 4

May 1, 2025

 Multifamily

Kansas City, MO

200

83.5

 REO 5

July 2, 2025

 Office

Charlotte, NC

124,788

62.5

Results of Operations

Comparison of the Three Months Ended September 30, 2025 to the Three Months Ended September 30, 2024

Net Interest Income

Net interest income is generated on our interest-earning assets less related interest-bearing liabilities. The following table presents the average balance of interest-earning assets less related interest-bearing liabilities, associated interest income and expense and corresponding yield earned and incurred for the periods indicated:


	Three months ended September 30,
	2025								2024
	Average Carrying Value (1)		Interest Income/ Expense (2)(3)			Weighted Average Yield/Financing Cost (4)			Average Carrying Value (1)		Interest Income/ Expense (2)(3)			Weighted Average Yield/Financing Cost (4)
Interest-earning assets:
Commercial mortgage loans	$	441,549	$	7,960			7.1	%	$	677,217	$	14,260			8.2	%
Total/Weighted Average	$	441,549	$	7,960			7.1	%	$	677,217	$	14,260			8.2	%
Interest-bearing liabilities:
Repurchase agreements— commercial mortgage loans	$	282,191	$	4,838			6.7	%	$	419,901	$	8,269			7.7	%
Loan participations sold, net		10,179		162			6.2	%		36,714		856			9.1	%
Total/Weighted Average	$	292,370	$	5,000			6.7	%	$	456,615	$	9,125			7.8	%
Net interest income/spread			$	2,960			0.4	%			$	5,135			0.4	%
Average leverage % (5)				196.0	%							207.0	%
Weighted average levered yield (6)							7.8	%							9.1	%

(1)

Based on principal amount for repurchase agreements. Amounts are calculated based on the average daily balance. Loan participations sold excludes the participation interest related to the REO.

(2)

Includes the effect of amortization of premium or accretion of discount.

(3)

Interest income excludes $293 and $500 for the three months ended September 30, 2025 and 2024, respectively, related to bank deposits not included in the investment portfolio. Interest expense excludes $612 and $360 of participation payments for the three months ended September 30, 2025 and 2024, respectively, related to the REO. Interest expense also excludes $5 and zero for the three months ended September 30, 2025 and 2024, respectively, related to interest expense on the mortgage loan payable.

(4)

Calculated as annualized interest income or expense divided by average carrying value.

(5)

Calculated by dividing total average interest-bearing liabilities by total average equity (total average interest-earning assets less total average liabilities).

(6)

Calculated by taking the sum of (i) the net interest spread multiplied by the average leverage and (ii) the weighted average yield on interest-earning assets.

The change in our average interest-earning assets and interest-bearing liabilities was due to the paydown of the principal balance as loans matured or were sold or foreclosed on and the subsequent repayment of the amount financed for these loans. The change in the weighted average levered yield was primarily due to the change in the composition of the loans in the portfolio and the change in the composition of financing.

Revenue from Real Estate

Our revenue from real estate during the three months ended September 30, 2025 and 2024 was $2,593 and $1,274, respectively. The increase in revenue was primarily due to the acquisition of two properties during 2025 and one property during the fourth quarter of 2024.

Operating Expenses

Operating expenses for the three months ended September 30, 2025 and 2024 consisted of the following:


	Three months ended September 30,
	2025		2024
Advisory fee	$	780	$	797
Amortization of debt finance costs		329		350
Directors compensation		19		20
Professional service fees		319		255
Real estate operating expenses		1,742		721
Depreciation and amortization		1,824		656
Other expenses		331		410
Total operating expenses	$	5,344	$	3,209

Total operating expenses for the three months ended September 30, 2025 and 2024 were $5,344 and $3,209, respectively. The primary driver of the increase in total operating expenses was the acquisition of two properties during 2025 and one property during the fourth quarter of 2024.

Net (Loss) Income

For the three months ended September 30, 2025 and 2024, our net (loss) income was $(7,641) and $615, respectively. The decrease in net income was primarily due to a reduction in net interest income as the loan portfolio decreased, net realized loss on disposition of commercial loans compared to a net realized gain during 2024, and an increase in real estate operating expenses and depreciation and amortization, partially offset by an increase in revenue from real estate and a decrease in the CECL reserve.

Comparison of the Nine Months Ended September 30, 2025 to the Nine Months Ended September 30, 2024

Net Interest Income


	Nine months ended September 30,
	2025								2024
	Average Carrying Value (1)		Interest Income/ Expense (2)(3)			Weighted Average Yield/Financing Cost (4)			Average Carrying Value (1)		Interest Income/ Expense (2)(3)			Weighted Average Yield/Financing Cost (4)
Interest-earning assets:
Commercial mortgage loans	$	511,661	$	28,539			7.4	%	$	701,907	$	43,135			8.1	%
Total/Weighted Average	$	511,661	$	28,539			7.4	%	$	701,907	$	43,135			8.1	%
Interest-bearing liabilities:
Repurchase agreements — commercial mortgage loans	$	324,920	$	16,576			6.7	%	$	429,738	$	25,299			7.7	%
Credit facility—loans		—		—			—			5,131		345			8.8	%
Loan participations sold, net		22,471		1,019			6.0	%		37,294		2,313			8.1	%
Total/Weighted Average	$	347,391	$	17,595			6.7	%	$	472,163	$	27,957			7.8	%
Net interest income/spread			$	10,944			0.7	%			$	15,178			0.3	%
Average leverage % (5)				211.5	%							205.5	%
Weighted average levered yield (6)							8.8	%							8.7	%

(1)

Based on principal amount for repurchase agreements. Amounts are calculated based on the average daily balance.

(2)

Includes the effect of amortization of premium or accretion of discount.

(3)

Interest income excludes $1,229 and $1,720 for the nine months ended September 30, 2025 and 2024, respectively, related to bank deposits not included in the investment portfolio. Interest expense excludes $1,233 and $360 of participation payments for the nine months ended September 30, 2025 and 2024, respectively, related to the REO. Interest expense also excludes $5 and zero for the nine months ended September 30, 2025 and 2024, respectively, related to interest expense on the mortgage loan payable.

(4)

Calculated as annualized interest income or expense divided by average carrying value.

(5)

Calculated by dividing total average interest-bearing liabilities by total average equity (total average interest-earning assets less total average liabilities).

(6)

Calculated by taking the sum of (i) the net interest spread multiplied by the average leverage and (ii) the weighted average yield on interest-earning assets.

Revenue from Real Estate

Our revenue from real estate during the nine months ended September 30, 2025 and 2024, was $6,008 and $1,274, respectively. The increase in revenue was primarily due to the acquisition of two properties during 2025 and one property during the fourth quarter of 2024.

Operating Expenses

Operating expenses for the nine months ended September 30, 2025 and 2024 consisted of the following:


	Nine months ended September 30,
	2025		2024
Advisory fee	$	2,353	$	2,401
Amortization of debt finance costs		1,001		1,122
Directors compensation		57		59
Professional service fees		868		748
Real estate operating expenses (1)		3,787		721
Depreciation and amortization		4,033		656
Other expenses		986		1,125
Total operating expenses	$	13,085	$	6,832
____________

(1)

The amount for the nine months ended September 30, 2025 is presented net of $408 in employee retention credits received during the period. These credits relate to the Renaissance O’Hare property that we owned from August 20, 2020 through September 28, 2023.

Total operating expenses for the nine months ended September 30, 2025 and 2024 were $13,085 and $6,832, respectively. The primary driver of the increase in total operating expenses was the acquisition of two properties in 2025 and one property during the fourth quarter of 2024.

Net (Loss) Income

For the nine months ended September 30, 2025 and 2024, our net (loss) income was $(620) and $9,004, respectively. The decrease in net income was primarily due to a reduction in net interest income as the loan portfolio decreased, net realized loss on disposition of commercial loans compared to a net realized gain during 2024, and an increase in real estate operating expenses and depreciation and amortization, partially offset by an increase in revenue from real estate and a decrease in the CECL reserve.

Our FFO and MFFO are calculated as follows:


	Three months ended September 30,						Nine months ended September 30,
	2025			2024			2025			2024
Net (loss) income attributable to common stockholders	$	(9,136	)	$	(880	)	$	(5,106	)	$	4,518
Depreciation and amortization		1,824			656			4,033			656
Funds from operations (FFO) attributable to common stockholders	$	(7,312	)	$	(224	)	$	(1,073	)	$	5,174

Amortization of debt financing costs	$	329		$	350		$	1,001		$	1,122
(Reversal of) provision for credit losses		(892	)		3,654			(3,404	)		2,905
Amortization of acquired lease intangibles, net		(19	)		(19	)		(56	)		(19	)
Straight-line expense, net		(45	)		(55	)		(324	)		(55	)
Net realized loss (gain) on disposition of commercial loans		8,418			(929	)		7,882			(929	)
Modified funds from operations (MFFO) attributable to common stockholders	$	479		$	2,777		$	4,026		$	8,198

Net Asset Value

Our NAV for each class of shares is based on the net asset values of our investments, the addition of any other assets (such as cash on hand) and the deduction of any liabilities, including the allocation/accrual of any performance participation and any stockholder servicing fees applicable to such class of shares. The Advisor is responsible for reviewing and confirming our NAV, as well as overseeing the process around the calculation of our NAV, in each case, as calculated by the independent valuation advisor. See “Valuation Guidelines” below for further information regarding our valuation policies used to determine our NAV.

The following table provides a breakdown of the major components of our total net asset value attributable to common stock as of September 30, 2025 ($ and shares in thousands):


Components of NAV	As of September 30, 2025
Commercial mortgage loans	$	379,190
Real estate owned		105,124
Cash and cash equivalents and restricted cash		73,866
Due from related parties		555
Other assets		5,146
Repurchase agreements - commercial mortgage loans		(242,270	)
Loan participations sold		(47,141	)
Mortgage loan payable		(23,804	)
Due to related parties		(1,137	)
Distributions payable		(1,052	)
Interest payable		(2,513	)
Accrued stockholder servicing fees (1)		(257	)
Other liabilities		(3,078	)
Preferred stock		(87,952	)
Net asset value attributable to common stock	$	154,677
Number of outstanding common shares		10,120

(1)

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 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 September 30, 2025, we had accrued under GAAP $645 of stockholder servicing fees payable to Inland Securities Corporation (the “Dealer Manager”) related to the Class T and Class D shares sold. As of September 30, 2025, we had not sold any Class S shares and, therefore, we had 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 September 30, 2025 ($ and shares in thousands, except per share data):


	Common Stock
NAV Per Share	Class P		Class A		Class T		Class S		Class D		Class I		Total
Monthly NAV	$	130,775	$	11,429	$	4,488	$	—	$	737	$	7,246	$	154,677
Number of outstanding shares		8,563		746		290		—		48		473		10,120
NAV per share as of September 30, 2025	$	15.2725	$	15.3231	$	15.4563	$	—	$	15.3458	$	15.3238	$	15.2843

The following table reconciles stockholders’ equity per our consolidated balance sheet to our NAV ($ in thousands):


Reconciliation of Stockholders’ Equity to NAV	As of September 30, 2025
Stockholders’ equity per GAAP	$	231,064
Adjustments:
Unamortized stockholder servicing fee and other expenses		400
Real estate owned non-cash adjustments		7,313
Credit losses reserve - non-specific portion		3,853
Net asset value	$	242,630
Preferred Stock Adjustments:
Preferred stock liquidation value		(88,614	)
Unamortized preferred stock offering costs		661
Net asset value attributable to common stock	$	154,677

Valuation Guidelines

Our Board, including a majority of our independent directors, has adopted valuation guidelines that contain a comprehensive set of methodologies to be used by our Advisor, with the assistance of our Sub-Advisor, and our independent valuation advisor in connection with estimating the values of our assets and liabilities for purposes of our NAV calculation. From time to time, our Board, including a majority of our independent directors, may adopt changes to the valuation guidelines if it (1) determines that such changes are likely to result in a more accurate reflection of NAV or a more efficient or less costly procedure for the determination of NAV without having a material adverse effect on the accuracy of such determination or (2) otherwise reasonably believes a change is appropriate for the determination of NAV. In connection with carrying out its responsibility to determine our NAV, our Advisor may delegate certain tasks to our Sub-Advisor. Our Advisor, however, is ultimately responsible for the NAV determination process.

The calculation of our NAV is intended to be a calculation of the value of our assets less our outstanding liabilities for the purpose of establishing a purchase and repurchase price for our shares of common stock and may differ from our financial statements. NAV is not a measure used under GAAP and the valuations of and certain adjustments made to our assets and liabilities used in the determination of NAV will differ from GAAP.

Our Advisor calculates the fair value of our assets in accordance with our valuation guidelines. Because these fair value calculations involve significant professional judgment in the application of both observable and unobservable attributes, the calculated fair value of our assets may differ from their actual realizable value or future fair value. Furthermore, no rule or regulation requires that we calculate NAV in a certain way. While we believe our NAV calculation methodologies are consistent with standard industry principles, there is no established practice among public REITs, whether listed or not, for calculating NAV in order to establish a purchase and repurchase price. As a result, other public REITs may use different methodologies or assumptions to determine NAV.

Our Independent Valuation Advisor

With the approval of our Board, including a majority of our independent directors, we have engaged BDO USA, P.C. to serve as our independent valuation advisor. Our Advisor, with the approval of our Board, including a majority of our independent directors, may engage additional independent valuation advisors in the future as our portfolio grows. At the end of each month, the independent valuation advisor reviews the calculation of our monthly NAV. The independent valuation advisor is not responsible for our NAV, and performs its services based solely on information received from us, our Advisor and our Sub-Advisor. Our Advisor, and not the independent valuation advisor, is ultimately responsible for the determination of our NAV.

Our independent valuation advisor may be replaced at any time, in accordance with agreed-upon notice requirements, by a majority vote of our Board, including a majority of our independent directors. We will promptly disclose any changes to the identity or role of the independent valuation advisor in reports we publicly file with the SEC. Our independent valuation advisor discharges its responsibilities in accordance with our valuation guidelines. Our Board is not involved in the monthly valuation of our assets and liabilities, but periodically receives and reviews such information about the valuation of our assets and liabilities as it deems necessary to exercise its oversight responsibility.

We have agreed to pay fees to our independent valuation advisor upon its delivery to us of its review reports. We have also agreed to indemnify our independent valuation advisor against certain liabilities arising out of this engagement. The compensation we pay to our independent valuation advisor is not based on the estimated values of our loans or our NAV.

Our independent valuation advisor may from time to time in the future perform other commercial real estate and financial advisory services for our Advisor or Sub-Advisor and their affiliates, so long as such other services do not adversely affect the independence of the independent valuation advisor.

Valuation of Investments

The majority of our investments consist of CRE debt intended to be held to maturity. We may also invest in real estate and other real estate-related assets and liquid non-real estate-related assets. Real estate-related assets include CRE securities, such as CMBS and CRE CLOs, and unsecured debt of publicly traded REITs. Our liquid non-real estate-related assets may include credit rated government and corporate debt securities, publicly traded equity securities and cash and cash equivalents.

Our Advisor seeks to determine the fair value of investments as of the last day of each month. Fair value determinations are based upon all available inputs that our Advisor deems relevant, including, but not limited to, indicative dealer quotes, values of like securities, discounted cash flow analysis, and valuations prepared by third-party valuation services. However, determination of fair value involves subjective judgments and estimates.

•

Mortgage Loans, Participations in Mortgage Loans and Mezzanine Loans. Our Advisor estimates the fair value of our loan portfolio in accordance with the methodologies contained in our valuation guidelines approved by our Board. In general, the loan portfolio will be valued at amortized cost, subject to impairment testing. Beginning January 1, 2023, we have been required under GAAP to record a Current Expected Credit Loss (“CECL”) reserve on the CRE debt portfolio that will be adjusted at least quarterly. The analytical portion (which is based on a probability-weighted quantitative analytical model that considers the likelihood of default and loss-given-default for each individual loan) of the CECL reserve is excluded from the value of the loans. The value of the loans does include any specific reserves for collateral-dependent loans included in the CECL reserve amount. We believe this methodology is consistent with institutional valuation practices and provides an appropriate valuation for purposes of establishing a purchase and repurchase price for our shares of common stock as it relates to assets that are intended to be held to maturity.

•

Real Estate-Related Securities and Derivatives. Our real estate-related securities investments will generally focus on non-distressed public and private real estate debt, including, but not limited to, CMBS and other forms of debt. Additionally, we may make open market purchases of common stock in public equity REITs. We may also invest in derivatives. Our principal investments in derivative instruments may include investments in interest rate swaps, interest rate cap or floor contracts, futures or forward contracts, options or repurchase agreements. Our real estate-related securities and derivative investments are recorded at fair market value in our financial statements, in accordance with ASC Topic 820. The valuation of these assets is obtained from market quotations obtained from third-party pricing service providers or broker-dealers. Pursuant to the valuation guidelines adopted by our Board, if market quotations are not readily available (or are otherwise not reliable for a particular investment), the fair value is determined in good faith by our Advisor. Due to the inherent uncertainty of these estimates, estimates of fair value may differ from the values that would have been used had a ready market for these investments existed and the differences could be material. Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information, bid/ask information, or broker-dealer quotations). Our Board has delegated to our Advisor the responsibility for monitoring significant events that may materially affect the values of our real estate-related securities and derivative investments and for determining whether the value of the applicable investments should be reevaluated in light of such significant events.

•

Valuation of Liquid Non-Real Estate-Related Assets. Our liquid non-real estate-related assets are recorded at fair market value in our financial statements, in accordance with ASC Topic 820. The valuation of these assets is based on market prices obtained from third-party pricing services or as published in nationally recognized sources such as Bloomberg.

Valuation of Properties

•

Wholly Owned Properties. For real properties we own, our Advisor has developed a valuation plan with the objective of having each of our wholly owned properties valued at least annually by an appraisal, except for newly acquired properties as described below, with appraisals scheduled over the course of a year. We rely on property-level information provided by our Advisor, including but not limited to (1) historical and projected operating revenues and expenses of the property, (2) lease agreements with respect to the property and (3) information regarding recent or planned capital expenditures. Appraisals will be performed in accordance with the Internal Revenue Code of Ethics and the Uniform Standards of Professional Appraisal Practices, the real estate appraisal industry standards created by The Appraisal Foundation. Each appraisal must be reviewed, approved and signed by an individual with the professional designation of MAI (Member of the Appraisal Institute). Newly acquired wholly owned properties will initially be valued at cost and thereafter will join the annual appraisal cycle during the year following the first full calendar year in which we own the property. Development assets, if any, will be valued at cost plus capital expenditures and will join the annual appraisal cycle upon stabilization. Acquisition costs and expenses incurred in connection with the acquisition of multiple wholly owned properties that are not directly related to any single wholly owned property generally will be allocated among the applicable wholly owned properties pro rata based on relative values. Properties purchased as a portfolio or held in a joint venture that acquires properties over time may be valued as a single asset. Each individual appraisal report for our assets will be addressed solely to our company to assist in providing our monthly portfolio valuation.

Our valuation reports are not addressed to the public and may not be relied upon by any other person to establish an estimated value of our common stock and do not constitute a recommendation to any person to purchase or sell any shares of our common stock. In preparing our NAV calculation, our Advisor does not solicit third-party indications of interest for our common stock in connection with possible purchases thereof or the acquisition of all or any part of our company. Real estate appraisals are reported on a free and clear basis (for example no mortgage), irrespective of any property-level financing that may be in place. The primary methodology used to value properties is the income approach, whereby value is derived by determining the present value of an asset’s stream of future cash flows (for example, discounted cash flow analysis). Consistent with industry practices, the income approach incorporates subjective judgments regarding comparable rental and operating expense data, the capitalization or discount rate, and projections of future rent and expenses based on appropriate evidence. Other methodologies that may also be used to value properties include sales comparisons and replacement cost approaches. Because the appraisals involve subjective judgments, the fair value of our assets, which is included in our NAV, may not reflect the liquidation value or net realizable value of our properties.

•

Properties Held Through Joint Ventures. Properties held through joint ventures will be valued in a manner that is consistent with the guidelines described above for wholly owned properties. Once the value of a property held by the joint venture is determined by an independent appraisal, the value of our interest in the joint venture is then determined by applying the distribution provisions of the applicable joint venture agreements to the value of the underlying property held by the joint venture.

Liabilities

We include the fair value of our liabilities as part of our NAV calculation. Our liabilities generally include portfolio-level credit facilities, the fees payable to our Advisor and the Dealer Manager, accounts payable, accrued operating expenses, property-level mortgages, reserves for future liabilities and other liabilities. All liabilities are valued using widely accepted methodologies specific to each type of liability. Our debt is typically valued at fair value in accordance with GAAP. Our aggregate monthly NAV will be reduced to reflect the accrual of the liability to pay any declared (and unpaid) distributions for all classes of common stock. Liabilities allocable to a specific class of shares will only be included in the NAV calculation for that class.

NAV and NAV Per Share Calculation

Each class of our common stock, including Class P common stock that was not offered to the public, has an undivided interest in our assets and liabilities, other than class-specific liabilities. Our NAV is calculated by the independent valuation advisor for each of these classes. Our Advisor is responsible for reviewing and confirming our NAV, and overseeing the process around the calculation of our NAV, in each case, as calculated by the independent valuation advisor. Because stockholder servicing fees allocable to a specific class of shares will only be included in the NAV calculation for that class, the NAV per share for our share classes may differ.

At the end of each month, before taking into consideration class-specific expense accruals for that month, any change in our aggregate NAV (whether an increase or decrease) is allocated among each class of shares based on each class’s relative percentage of the previous aggregate NAV plus issuances of shares that were effective on the first business day of such month and issuances of shares under our DRP and less repurchases under our SRP during such month. The NAV calculation is generally available within 15 calendar days after the end of the applicable month. Changes in our monthly NAV include, without limitation, accruals of our net portfolio income, interest

expense, the management fee, any accrued performance fee, distributions, unrealized/realized gains and losses on assets, provisions for credit losses recorded on specific loans, any applicable organization and offering costs and any expense reimbursements. Changes in our monthly NAV also include material non-recurring events, such as capital expenditures and material property acquisitions and dispositions occurring during the month. On an ongoing basis, our Advisor will adjust the accruals to reflect actual operating results and the outstanding receivable, payable and other account balances resulting from the accumulation of monthly accruals for which financial information is available.

For the purpose of calculating our NAV, offering costs are expenses we incur as we raise proceeds in our public and private offerings. For GAAP purposes, these costs are deducted from equity when incurred. For the NAV calculation, all of the offering costs from our public and private offerings incurred through July 17, 2019 (the “NAV Pricing Date”) were added back to equity and amortized into equity monthly over the 60 months beginning with the first full month that follows the NAV Pricing Date. Following the NAV Pricing Date, offering costs are included in the NAV calculation as and when incurred.

Following the aggregation of the NAV of our investments, the addition of any other assets (such as cash on hand) and the deduction of any other liabilities, the independent valuation advisor incorporates any class-specific adjustments to our NAV, including additional issuances and repurchases of our common stock and accruals of class-specific stockholder servicing fees. For each applicable class of shares, the stockholder servicing fees are calculated as a percentage of the aggregate NAV for such class of shares. NAV per share for each class is calculated by dividing such class’s NAV at the end of each month by the number of shares outstanding for that class at the end of such month.

The combination of the Class A NAV, Class T NAV, Class S NAV, Class D NAV, Class I NAV and Class P NAV equals the value of our assets less our liabilities, which include certain class-specific liabilities. Our Advisor calculates the value of our investments as directed by our valuation guidelines based upon values received from various sources, including independent valuation services. Our Advisor, with assistance from our Sub-Advisor, is responsible for information received from third parties that is used in calculating our NAV.

Limits on the Calculation of Our Per Share NAV

The overarching principle of our valuation guidelines is to produce reasonable estimated values for each of our investments (and other assets and liabilities). However, the majority of our assets consist of real estate loans and, as with any real estate valuation protocol and as described above, the valuation of our loans (and other assets and liabilities) is based on a number of judgments, assumptions and opinions about future events that may or may not prove to be correct. The use of different judgments, assumptions or opinions would likely result in a different estimate of the value of our real estate loans (and other assets and liabilities). Any resulting potential disparity in our NAV per share may be in favor of stockholders whose shares are repurchased, existing stockholders or new purchasers of our common stock, as the case may be, depending on the circumstances at the time (for cases in which our transaction price is based on NAV).

Additionally, while the methodologies contained in our valuation guidelines are designed to operate reliably within a wide variety of circumstances, it is possible that in certain unanticipated situations or after the occurrence of certain extraordinary events (such as a significant disruption in relevant markets, a terrorist attack or an act of nature), our ability to calculate NAV may be impaired or delayed, including, without limitation, circumstances where there is a delay in accessing or receiving information from vendors or other reporting agents upon which we may rely upon in determining the monthly value of our NAV. In these circumstances, a more accurate valuation of our NAV could be obtained by using different assumptions or methodologies. Accordingly, in special situations when, in our Advisor’s reasonable judgment, the administration of the valuation guidelines would result in a valuation that does not represent a fair and accurate estimate of the value of our investment, alternative methodologies may be applied, provided that our Advisor must notify our Board at the next scheduled board meeting of any alternative methodologies utilized and their impact on the overall valuation of our investment. We include no discounts to our NAV for the illiquid nature of our shares, including the limitations under our SRP and our ability to suspend or terminate our SRP at any time. Our NAV generally does not consider exit costs that would likely be incurred if our assets and liabilities were liquidated or sold. While we may use market pricing concepts to value individual components of our NAV, our per share NAV is not derived from the market pricing information of open-end real estate funds listed on stock exchanges. Our NAV does not represent the fair value of our assets less liabilities under GAAP.

Liquidity and Capital Resources

Liquidity is a measurement of our ability to meet potential cash requirements, including ongoing commitments to pay distributions to our stockholders, fund investments, originate loans, repay borrowings, and other general business needs including the payment of our operating and administrative expenses.

Our primary sources of funds for liquidity consist of net cash provided by operating activities, repayments of our outstanding loans by borrowers, proceeds from repurchase agreements and other financing arrangements, future issuances of equity and/or debt securities and any follow-on public offerings of common stock. As of September 30, 2025, we had $71 million in cash, $284 million in available capacity on our borrowing facilities and $20 million in available borrowing capacity from our revolving credit letter agreements with IREIC and Sound Point.

Our primary liquidity needs include advances on our current loan portfolio, commitments to repay the principal and interest on our borrowings, funding our operations, distributions to our stockholders and originating any new loans. We believe we have sufficient liquidity to meet our current needs. In the future we may seek additional sources of liquidity to fund our growth which may include the sale of common or preferred stock or additional financing through repurchase agreements, collateralized loan obligations, sale of loan participations or other borrowings.

Cash Flow Analysis


	Nine months ended September 30,
	2025			2024
Net cash provided by operating activities	$	8,932		$	13,402
Net cash provided by investing activities		111,227			55,812
Net cash used in financing activities		(110,842	)		(64,536	)
Net increase in cash and cash equivalents and restricted cash	$	9,317		$	4,678

We experienced a net increase in cash and cash equivalents and restricted cash of $9,317 for the nine months ended September 30, 2025 compared to a net increase of $4,678 for the nine months ended September 30, 2024. During the nine months ended September 30, 2025, we funded $2,043 on existing mortgage loans, received $74,029 in principal payments from our loans, paid down $118,407 on our borrowing facilities, received $24,500 from the mortgage loan on REO, received $39,063 from sale of a commercial loan and paid distributions of $13,940.

Repurchase Agreements, Credit Facility and Mortgage Loan Payable

On February 15, 2018, we, through our wholly owned subsidiary, entered into a master repurchase agreement (the “Atlas Repo Facility”) with Column Financial, Inc. as administrative agent for certain of its affiliates. As our business grew, we extended the maturity date of the Atlas Repo Facility. The most recent extension was in November 2023 for a twelve-month term and the maximum advance amount was reduced to $100,000. On February 8, 2023, Column Financial, Inc. and affiliated parties sold and assigned their interest in the Atlas Repo Facility to Atlas Securitized Products Investments 2, L.P. with no changes to the terms of the Atlas Repo Facility. Advances under the Atlas Repo Facility accrued interest at a per annum rate equal to SOFR plus 2.50% to 3.00% with a 0.15% to 0.25% floor. We paid off the outstanding balance on the Atlas Repo Facility in May 2023. The Atlas Repo Facility matured on November 8, 2024 and we chose not to extend the line as we did not believe it was needed.

On May 6, 2019, we, through our wholly owned subsidiary, entered into an uncommitted master repurchase agreement (the “JPM Repo Facility”) with JPMorgan Chase Bank, National Association (“JPM”). The JPM Repo Facility provides up to $150,000 in advances that we expect to use to finance the acquisition or origination of eligible loans and participation interests therein. Advances made prior to December 2021 under the JPM Repo Facility accrue interest at per annum rates equal to the sum of (i) the applicable LIBOR index rate plus (ii) a margin of between 1.75% to 2.50% with no floor, depending on the attributes of the purchased assets. Advances made subsequent to December 2021 under the JPM Repo Facility accrue interest at per annum rates equal to the sum of SOFR plus an agreed upon margin. As of September 30, 2025, all of the advances made under the JPM Repo Facility were indexed to SOFR and have margins between 1.85% and 2.85% with a floor between 0.00% and 2.00%. In May 2022, the maturity date of the JPM Repo Facility was extended to May 6, 2023. On May 5, 2023, we entered into an amendment that extended the maturity date to May 6, 2026, with the option to extend the maturity date further to May 6, 2028 subject to two optional one-year extensions. The amendment also increased the maximum facility amount to $526,076. We used the increased capacity to pay off the balance on the Atlas Repo Facility. The JPM Repo Facility is subject to certain financial covenants. We were in compliance with all financial covenant requirements as of September 30, 2025 and December 31, 2024.

On March 10, 2021, we, through our wholly owned subsidiary, entered into a credit facility with Western Alliance Bank (the “WA Credit Facility”). The WA Credit Facility provided for loan advances up to the lesser of $75,000 or the borrowing base. The borrowing base consisted of eligible assets pledged to and accepted by Western Alliance in its discretion up to the lower of (i) 60% to 70% of loan-to-unpaid balance or (ii) 45% to 50% of the loan-to-appraised value (depending on the property type underlying the asset, for both (i) and (ii)). Assets that would otherwise be eligible became ineligible after being pledged as part of the borrowing base for 36 months. Advances under the WA Credit Facility accrued interest at an annual rate equal to one-month LIBOR plus 3.25% with a floor of 0.75%. The initial maturity date of the WA Credit Facility was March 10, 2023. On March 9, 2023, we extended the maturity date of the WA Credit Facility to March 10, 2025, modified that loan advances are up to the lesser of $40,000 or the borrowing base, and changed the index rate from LIBOR to SOFR. In addition, the spread increased to 3.50% and the floor to 2.50%. We had an option to convert the loan made pursuant to the WA Credit Facility upon its initial maturity to a term loan with the same interest rate and floor and a maturity of two years in exchange for, among other things, a conversion fee of 0.25% of the outstanding amount at the time of conversion. The WA Credit Facility required maintenance of an average unrestricted aggregate deposit account balance with Western Alliance of not less than $3,750 until the calendar quarter ended on June 30, 2023 and not less than $5,000 commencing with the calendar quarter ended on September 30, 2023. Failure to meet the minimum deposit balance resulted in, among other things, the interest rate of the WA Credit Facility increasing by 0.50% per annum for each quarter in which the compensating balances were not maintained. We paid off the outstanding balance on the WA Credit Facility in May 2024. We decided the WA Credit Facility was no longer necessary and chose not to renew it when it matured on March 10, 2025.

The JPM Repo Facility, Atlas Repo Facility (prior to its maturity) and WA Credit Facility (prior to its maturity) (collectively, the “Facilities”) have been, and continue to be (in the case of the JPM Repo Facility), used to finance eligible loans and act in the manner of a revolving credit facility that can be repaid as our assets are paid off and re-drawn as advances against new assets.

The tables below show our Facilities as of September 30, 2025 and December 31, 2024:


September 30, 2025									Weighted Average
	Committed Financing		Amount Outstanding (1)		Accrued Interest Payable		Collateral Pledged		Interest Rate			Days to Maturity
JPM Repo Facility	$	526,076	$	242,270	$	576	$	340,388		6.58	%		949
Total Repurchase Facilities — commercial mortgage loans	$	526,076	$	242,270	$	576	$	340,388		6.58	%		949


December 31, 2024									Weighted Average
	Committed Financing		Amount Outstanding (1)		Accrued Interest Payable		Collateral Pledged		Interest Rate			Days to Maturity
JPM Repo Facility	$	526,076	$	360,677	$	958	$	496,287		6.79	%		1,222
Total Repurchase Facilities — commercial mortgage loans		526,076		360,677		958		496,287		6.79	%		1,222
WA Credit Facility		40,000		—		—		—		—			69
	$	566,076	$	360,677	$	958	$	496,287		6.79	%		1,222

(1)

Excludes $0 of unamortized debt issuance costs as of September 30, 2025 and December 31, 2024.

Mortgage Loan Payable

On September 30, 2025, we entered into a mortgage loan agreement with Ladder Capital Finance LLC for an aggregate principal amount of $24,500. The mortgage loan is collateralized by the Kansas City property. As of September 30, 2025, we had $24,500 outstanding under the mortgage loan. The mortgage loan bears interest at a rate equal to the greater of (a) SOFR plus 2.95% or (b) a floor rate of 6.20% per annum. The mortgage loan requires interest-only payments until the maturity date, at which point the outstanding principal and interest are due. The maturity date of the mortgage loan is October 6, 2027, and we have the option to extend the maturity date for up to three additional one-year periods, subject to the payment of an extension fee, certain costs and expenses and certain other conditions. The mortgage loan contains customary default provisions including failure to pay amounts when due. As of September 30, 2025, the carrying value of the mortgage loan payable was $23,804.

Loan Participations Sold

On November 15, 2021, we sold a non-recourse senior participation interest in nine first mortgage loans to a third party. Under the loan participation agreement, in the event of default by the underlying mortgagor, any amounts paid are first allocated to the third party before any amounts are allocated to our subordinate interest. As the directing participant in the loan participation agreement, we are entitled to exercise, without the consent of the third party, each of the consent approval and control rights under the applicable underlying mortgage loan documents with a few exceptions. We require the third party’s approval for any modification or amendment to the loan, a bankruptcy plan for an underlying mortgagor where the third party would incur an out-of-pocket loss, or any transfer of the underlying mortgaged property if our approval is required by the underlying mortgage documents. We remain the directing participant unless certain conditions are met related to losses on the property or if the mortgagor is one of our affiliates. In the former case, we may post cash or short-term U.S. government securities as collateral to retain the rights of the directing participant.

The third party, as the senior participation interest holder, receives interest and principal payments from the borrower until they receive the amounts to which they are entitled. All expenses or losses on the underlying mortgages are allocated first to us and then to the third party. If the underlying mortgage is in default, we will have the option to purchase the third party’s participation interest and remove it from the loan participation agreement.

On July 2, 2025, we acquired legal title to an office property through a non-judicial foreclosure transaction. On July 2, 2024, we acquired legal title to two office properties through non-judicial foreclosure transactions. Both the underlying loans were subject to loan participation agreements. Upon foreclosure, we are still subject to the participation payments to the third party. Such payments are based on the underlying properties’ net income before depreciation adjusted for any non-cash revenue. If the monthly payment exceeds the interest due under the participation agreement, the excess is paid to the third party and recorded as a reduction of accrued and unpaid interest first and then as a reduction of the principal. If the monthly payment is less than the interest due under the participation agreement, the shortfall is accrued as interest payable.

The following tables detail our loan participations sold as of September 30, 2025 and December 31, 2024:


	September 30, 2025
Loan Participations Sold	Count		Principal Balance		Book Value		Yield/Cost (1)	Guarantee (2)	Weighted Average Maximum Maturity (4)
Total Loans		1	$	12,700	$	12,715	SOFR+1.8%	n/a		0.36
Senior participations (3) (5)		3	$	47,141	$	47,141	SOFR+2.0%	n/a		0.36


	December 31, 2024
Loan Participations Sold	Count		Principal Balance		Book Value		Yield/Cost (1)	Guarantee (2)	Weighted Average Maximum Maturity (4)
Total Loans		2	$	36,528	$	29,294	SOFR+3.6%	n/a		0.77
Senior participations (3) (5)		3	$	48,524	$	48,524	SOFR+2.0%	n/a		0.77
____________

(1)

(2)

As of September 30, 2025 and December 31, 2024, the loan participations sold were non-recourse to us.

(3)

During the nine months ended September 30, 2025 and 2024, we recorded $2,252 and $2,673, respectively, of interest expense related to loan participations sold.

(4)

Based on the furthest maximum maturity date of all the loans subject to the participation agreement.

(5)

Includes participation interest related to the foreclosed properties described above.

Revolving Credit Liquidity Letter Agreements

IREIC, our sponsor, and Sound Point have agreed under separate letter agreements dated July 20, 2021, and July 15, 2021, respectively, to make revolving credit loans to us in an aggregate principal amount outstanding at any one time not to exceed $5,000 and $15,000, respectively (the “IREIC-Sound Point Commitments”) from time to time. Use of the IREIC-Sound Point Commitments is limited to satisfying requirements to maintain cash or cash equivalents under our repurchase and other borrowing arrangements.

Distributions

Common Stock

The table below presents the aggregate annualized and monthly distributions declared by record date for all classes of shares of common stock since January 1, 2024. The amount of distributions that we may pay in the future is not certain.


Record date	Aggregate annualized gross distribution declared per share		Aggregate monthly gross distribution declared per share
January 31, 2024	$	1.2500	$	0.1042
February 29, 2024	$	1.2500	$	0.1042
March 31, 2024	$	1.2500	$	0.1042
April 30, 2024	$	1.2500	$	0.1042
May 31, 2024	$	1.2500	$	0.1042
June 30, 2024	$	1.2500	$	0.1042
July 31, 2024	$	1.2500	$	0.1042
August 31, 2024	$	1.2500	$	0.1042
September 30, 2024	$	1.2500	$	0.1042
October 31, 2024	$	1.2500	$	0.1042
November 30, 2024	$	1.2500	$	0.1042
December 31, 2024	$	1.2500	$	0.1042
January 31, 2025	$	1.2500	$	0.1042
February 28, 2025	$	1.2500	$	0.1042
March 31, 2025	$	1.2500	$	0.1042
April 30, 2025	$	1.2500	$	0.1042
May 31, 2025	$	1.2500	$	0.1042
June 30, 2025	$	1.2500	$	0.1042
July 31, 2025	$	1.2500	$	0.1042
August 31, 2025	$	1.2500	$	0.1042
September 30, 2025	$	1.2500	$	0.1042

The gross distribution was reduced each month for Class D and Class T of our common stock for applicable class-specific stockholder servicing fees to arrive at a lower net distribution amount paid to those classes. For a description of the stockholder servicing fees applicable to Class D, Class S and Class T shares of our common stock, please see “Note 10 – Transactions with Related Parties” in the notes to our consolidated financial statements included in this Quarterly Report on Form 10-Q. Since the IPO and through September 30, 2025, we have not issued any shares of Class S common stock.

The following table shows our monthly net distribution per share for shares of Class D and Class T common stock since January 1, 2024.


Record date	Monthly net distribution declared per share of Class D common stock		Monthly net distribution declared per share of Class T common stock
January 31, 2024	$	0.1006	$	0.0919
February 29, 2024	$	0.1008	$	0.0927
March 31, 2024	$	0.1006	$	0.0920
April 30, 2024	$	0.1007	$	0.0925
May 31, 2024	$	0.1006	$	0.0921
June 30, 2024	$	0.1008	$	0.0925
July 31, 2024	$	0.1006	$	0.0921
August 31, 2024	$	0.1007	$	0.0922
September 30, 2024	$	0.1008	$	0.0926
October 31, 2024	$	0.1007	$	0.0922
November 30, 2024	$	0.1008	$	0.0926
December 31, 2024	$	0.1007	$	0.0922
January 31, 2025	$	0.1007	$	0.0923
February 28, 2025	$	0.1010	$	0.0934
March 31, 2025	$	0.1007	$	0.0923
April 30, 2025	$	0.1008	$	0.0928
May 31, 2025	$	0.1007	$	0.0925
June 30, 2025	$	0.1009	$	0.0929
July 31, 2025	$	0.1007	$	0.0924
August 31, 2025	$	0.1007	$	0.0924
September 30, 2025	$	0.1009	$	0.0929

Series A Preferred Stock

Series A Preferred Stock dividends are paid quarterly in arrears based on an annualized distribution rate of 6.75% of the $25.00 per share liquidation preference, or $1.6875 per share per annum. The table below shows the aggregate annualized and quarterly distributions declared on the Series A Preferred Stock by record date since January 1, 2024.


Record date	Aggregate annualized gross distribution declared per share		Aggregate quarterly gross distribution declared per share
March 15, 2024	$	1.6875	$	0.421875
June 15, 2024	$	1.6875	$	0.421875
September 15, 2024	$	1.6875	$	0.421875
December 15, 2024	$	1.6875	$	0.421875
March 15, 2025	$	1.6875	$	0.421875
June 15, 2025	$	1.6875	$	0.421875
September 15, 2025	$	1.6875	$	0.421875

Sources of Distributions to Common Stockholders


	Nine months ended September 30,
	2025		2024
Distributions to Holders of Common Stock
Paid in cash	$	9,454	$	9,451
Reinvested in shares		—		—
Total distributions	$	9,454	$	9,451
Cash flows from operating activities	$	8,932	$	13,402

During the nine months ended September 30, 2025, 94% of our common stock distributions were paid from cash flows from operating activities generated during the period, and the remainder was paid using cash generated during prior periods. During the nine months ended September 30, 2024, 100% of our common stock distributions were paid from cash flows from operating activities generated during the period.

Critical Accounting Policies

There have been no material changes to our critical accounting policies set forth in our Annual Report on Form 10-K under the heading “Summary of Critical Accounting Policies and Estimates”.

Commercial Mortgage Loans Held for Investment and Allowance for Credit Losses

Loans held-for-investment are anticipated to be held until maturity, and reported at cost, net of allowance for credit losses, any unamortized acquisition premiums or discounts, loan fees and origination costs, as applicable. In accordance with ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, or ASU 2016-13, we use a probability-weighted quantitative analytical model to estimate and recognize an allowance for credit losses on loans held-for-investment and their related unfunded commitments. We employed quarterly updated macroeconomic forecasts, which reflect expectations for overall economic output, interest rates, values of real estate properties and other factors, geopolitical instability and the Federal Reserve monetary policy impact on the overall U.S. economy and commercial real estate markets generally. These estimates may change in future periods based on available future macroeconomic data and might result in a material change in our future estimates of expected credit losses for our loan portfolio.

We consider loan investments that are both (i) expected to be substantially repaid through the operation or sale of the underlying collateral, and (ii) for which the borrower is experiencing financial difficulty, to be “collateral-dependent” loans. For loans that we determine foreclosure of the collateral is probable, we measure the expected losses based on the difference between the fair value of the collateral and the amortized cost basis of the loan as of the measurement date. For collateral-dependent loans that we determine foreclosure is not probable, we apply a practical expedient to estimate expected losses using the difference between the collateral’s fair value (less costs to sell the asset if repayment is expected through the sale of the collateral) and the amortized cost basis of the loan.

For loans assigned a risk rating of “5,” we have determined that the recovery of the loan’s principal is collateral-dependent. Accordingly, these loans are assessed individually, and we elected to apply a practical expedient in accordance with ASU 2016-13. While utilizing the practical expedient for collateral-dependent loans, we estimate the fair value of the loan’s underlying collateral using the discounted cash flow method of valuation, less the estimated cost to foreclose and sell the property when applicable. The estimation of the fair value of the collateral property also involves using various Level 3 unobservable inputs, which are inherently uncertain and subjective, and are in part developed based on discussions with various market participants and management’s best estimates, which may vary depending on the information available and market conditions as of the valuation date. Selecting the appropriate inputs and assumptions requires significant judgment and consideration of various factors that are specific to the underlying collateral property being assessed. Our estimate of the fair value of the collateral property is sensitive to both the valuation methodology selected and inputs used in the analysis. As a result, the fair value of the collateral property used in determining the expected credit losses is subject to uncertainty and any actual losses, if incurred, could differ materially from the estimated provision for credit losses.

Interest income on loans held-for-investment is recognized at the loan coupon rate. Any premiums or discounts, loan fees, contractual exit fees and origination costs are amortized or accreted into interest income over the lives of the loans using the effective interest method. Generally, loans held-for-investment are placed on nonaccrual status when delinquent for more than 90 days or when determined not to be probable of full collection. Interest income recognition is suspended when loans are placed on nonaccrual status. Interest accrued, but not collected, at the date loans are placed on nonaccrual is reversed and subsequently recognized only to the extent it is received in cash or until it qualifies for return to accrual status. However, when there is doubt regarding the ultimate collectability of loan principal, all cash received is applied to reduce the carrying value of such loans. Loans held-for-investment are restored to accrual status only when contractually current or the collection of future payments is reasonably assured. We may make exceptions to placing a loan on nonaccrual status if the loan has sufficient collateral value and is in the process of collection or has been modified.

The allowance for credit losses is recorded in accordance with ASU 2016-13, and is a valuation account that is deducted from the amortized cost basis of loans held-for-investment on our consolidated balance sheets. Changes to the allowance for credit losses are recognized through net income (loss) on our consolidated statements of operations. The allowance is based on relevant information about past events, including historical loss experience, current portfolio, market conditions and reasonable and supportable forecasts for the duration of each respective loan. All loans held-for-investment within our portfolio have some amount of expected loss to reflect the GAAP principal underlying the CECL model that all loans have some inherent risk of loss, regardless of credit quality, subordinate capital or other mitigating factors.

Our loans typically include commitments to fund incremental proceeds to our borrowers over the life of the loan. Those future funding commitments are also subject to an allowance for credit losses. The allowance for credit losses related to future loan fundings is recorded as a component of “Accrued expenses and other liabilities” on our consolidated balance sheets, and not as an offset to the related loan balance. This allowance for credit losses is estimated using the same process outlined below for our outstanding loan balances, and changes in this component of the allowance for credit losses similarly flow through our consolidated statements of operations.

The allowance for credit losses is estimated on a quarterly basis and represents management’s estimates of current expected credit losses in our investment portfolio. Pools of loans with similar risk characteristics are collectively evaluated while loans that no longer share risk characteristics with loan pools are evaluated individually. Estimating an allowance for credit losses is inherently subjective, as it requires management to exercise significant judgment in establishing appropriate factors used to determine the allowance and a variety of subjective assumptions, including (i) determination of relevant historical loan loss data sets, (ii) the expected timing and amount of future loan fundings and repayments, (iii) the current credit quality of loans and operating performance of loan collateral and our expectations of performance, (iv) selecting the forecast for macroeconomic conditions and (v) determining the reasonable and supportable forecast period.

We estimate the analytical portion of our allowance for credit losses by using a probability-weighted quantitative analytical model that considers the likelihood of default and loss-given-default for each individual loan. The analytical model incorporates a third-party licensed database for over 100,000 commercial real estate loans. We license certain macroeconomic financial forecasts from a third-party to inform our view of the potential future impact that broader macroeconomic conditions may have on the performance of the loans held-for-investment. These macroeconomic factors include unemployment rates, interest rates, price indices for commercial property and other factors. We may use one or more of these forecasts in the process of estimating our allowance for credit losses. Selection of these economic forecasts requires significant judgment about future events that, while based on the information available to us as of the balance sheet date, are ultimately unknowable with certainty, and the actual economic conditions impacting our portfolio could vary significantly from the estimates we made for the periods presented. Significant inputs to our estimate of the allowance for credit losses include the reasonable and supportable forecast period and loan specific factors such as debt service coverage ratio, or DSCR, loan-to-value ratio, or LTV, remaining contractual loan term, property type and others. In addition, we also consider relevant loan-specific qualitative factors to estimate our allowance for credit losses.

Off-Balance Sheet Arrangements

As of September 30, 2025, we had no off-balance sheet arrangements that were reasonably likely to have a material current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources excluding future loan advance commitments as disclosed in “Note 8 – Commitments and Contingencies.

Subsequent Events

For information related to subsequent events, reference is made to “Note 14 – Subsequent Events,” which is included in our notes to consolidated financial statements included in this Quarterly Report on Form 10-Q.

Our Corporate Information

Our principal executive offices are located at 2901 Butterfield Rd., Oak Brook, Illinois 60523, our telephone number is (866) 694-6526 and our website is www.inland-investments.com/inpoint. From time to time, we may use our website as a distribution channel for material company information, including, for example, our position on any third-party tender offers for our securities. Our website is not incorporated by reference in or otherwise a part of this Quarterly Report on Form 10-Q. We will provide without charge a copy of this Quarterly Report on Form 10-Q upon written request delivered to our principal executive offices. We electronically file our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, proxy statements and all amendments to those reports with the SEC. The SEC maintains an Internet site at www.sec.gov that contains reports, proxy and information statements and other information regarding issuers that file electronically.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Credit Risk

Our investments are subject to a high degree of credit risk. Credit risk is the exposure to loss from loan defaults. Default rates are subject to a wide variety of factors, including, but not limited to, borrower financial condition, property performance, property management, supply/demand factors, construction trends, consumer behavior, regional economics, interest rates, the strength of the U.S. economy, and other factors beyond our control. All loans are subject to some risk of default. We manage credit risk through the underwriting

process and investment structuring process, acquiring our investments at the appropriate discount to face value, if any, and establishing loss assumptions. We also carefully monitor the performance of the loans, as well as external factors that may affect their value.

Adverse economic conditions could negatively impact the commercial properties underlying our investments resulting in potential borrower delinquencies or defaults. If we fail to repay the lender at maturity, the lender has the right to immediately sell the collateral and pursue us for any shortfall if the sales proceeds are inadequate to cover the repurchase agreement financing.

Interest Rate Risk

Our market risk arises primarily from interest rate risk relating to interest rate fluctuations. Many factors including governmental monetary and tax policies, domestic and international economic and political considerations and other factors that are beyond our control contribute to interest rate risk. To meet our short and long-term liquidity requirements, we may borrow funds at fixed and variable rates. Our interest rate risk management objectives are to limit the impact of interest rate changes in earnings and cash flows and to lower our overall borrowing costs. To achieve these objectives, from time to time, we may enter into interest rate hedge contracts such as swaps, collars and treasury lock agreements in order to mitigate our interest rate risk with respect to various debt instruments. While hedging activities may insulate us against adverse changes in interest rates, they may also limit our ability to participate in benefits of lower interest rates with respect to our portfolio of investments with fixed interest rates. During the nine months ended September 30, 2025 and 2024, we did not engage in interest rate hedging activities. We do not hold or issue derivative contracts for trading or speculative purposes. We do not have any foreign denominated investments, and thus, we are not exposed to foreign currency fluctuations.

As of September 30, 2025 and December 31, 2024, our debt investment portfolio was 97% and 98%, respectively, variable rate investments based on SOFR for various terms. Borrowings under our master repurchase agreements were short-term and at a variable rate. Both our investment portfolio and borrowings have minimum levels for SOFR known as interest rate floors. The floors were established when the loans and borrowings were originated based on market conditions. The following table quantifies the potential changes in interest income net of interest expense should interest rates increase or decrease by 25 or 50 basis points, assuming that our current balance sheet was to remain constant and no actions were taken to alter our existing interest rate sensitivity. The change from December 31, 2024 to September 30, 2025 was primarily due to the changes in the portfolio relating to payoffs, paydowns and draws.


	Estimated Percentage Change in Interest Income Net of Interest Expense
Change in Rates	September 30, 2025			December 31, 2024
(-) 50 Basis Points		(3.98	)%		(4.43	)%
(-) 25 Basis Points		(1.99	)%		(2.22	)%
Base Interest Rate		0.00	%		0.00	%
(+) 25 Basis Points		1.99	%		2.22	%
(+) 50 Basis Points		3.98	%		4.43	%

For this analysis, SOFR was assumed to not fall below zero.

Item 4. Controls and Procedures

Controls and Procedures

In accordance with Exchange Act Rules 13a-15 and 15d-15, we evaluated, with the participation of our principal executive and principal financial officers, the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on that evaluation, the principal executive and principal financial officers have concluded that our disclosure controls and procedures were effective as of the end of the period covered by this Quarterly Report on Form 10-Q.

Changes in Internal Control over Financial Reporting

There were no changes to our internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) or Rule 15d-15(f)) during the three months ended September 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Part II - Other Information

Item 1. Legal Proceedings

In the ordinary course of business, we may become subject to litigation. We have no knowledge of material legal proceedings pending or known to be contemplated against us at this time.

Item 1A. Risk Factors

The following risk factors amend and supplement the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2024 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025:

We may incur mortgage indebtedness and other borrowings, which increases our financial risks, could hinder our ability to make distributions and could decrease the value of stockholders’ investments.

The Company’s REO assets have been and may continue to be financed in substantial part by borrowing, which increases our exposure to loss. The use of leverage involves a high degree of financial risk and will increase the exposure of the investments to adverse economic factors such as rising interest rates, downturns in the economy or deteriorations in the condition of the REO assets. Principal and interest payments on indebtedness (including mortgages having “balloon” payments) will have to be made regardless of the sufficiency of our cash flow. If mortgage payments are not made when due, one or more of the REO assets may be lost (and our investment therein rendered valueless) as a result of foreclosure by the mortgagee. A foreclosure of the REO assets may also have substantial adverse tax consequences for us.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Recent Sales of Unregistered Equity Securities

On September 18, 2025, we issued a total of 1,871 shares of restricted stock to our independent directors for their service as such. The issuance of these securities was effected without registration in reliance on Section 4(a)(2) of the Securities Act as a sale by the Company not involving a public offering. No underwriters were involved with the issuance of such securities.

Use of Proceeds

On May 3, 2019, our 2019 Registration Statement on Form S-11 (File No. 333-230465) for our IPO of common stock of up to $2,350,000 in shares of Class A, Class T, Class S, Class D and Class I common stock, was declared effective under the Securities Act. Inland Securities Corporation served as our dealer manager for the common stock IPO. On April 28, 2022, we filed a Registration Statement on Form S-11 (File No. 333-264540) with the SEC, for our Second Public Offering, to register up to $2,200,000 in shares of common stock, which was declared effective by the SEC on November 2, 2022.

As of September 30, 2025, we had received net offering proceeds of $42.8 million from the IPO and Second Public Offering. The following table summarizes certain information about the Public Offerings’ proceeds ($ in thousands):


	Class A Shares		Class T Shares		Class S Shares		Class D Shares		Class I Shares		Total
Primary shares sold		794,715		464,881		—		53,815		489,069		1,802,480
Gross proceeds from primary offerings	$	19,695	$	11,309	$	—	$	1,237	$	10,999	$	43,240
Reinvestments of distributions		619		304		—		93		658		1,674
Total gross proceeds		20,314		11,613		—		1,330		11,657		44,914
Selling commissions and dealer manager fees		1,142		313		—		—		—		1,455
Stockholder servicing fees		—		547		—		98		—		645
Total expenses		1,142		860		—		98		—		2,100
Net offering proceeds (1)	$	19,172	$	10,753	$	—	$	1,232	$	11,657	$	42,814

(1)

Excludes company-level offering costs, net of reimbursements, of $5,413.

We primarily used the net offering proceeds from the Public Offerings to originate commercial real estate loans and purchase real estate securities on a levered basis, subject to our investment guidelines and to the extent consistent with maintaining our REIT qualification, and other general corporate purposes.

In light of the pace of fundraising in the Second Public Offering and the amount of monthly redemption requests pursuant to the SRP, which were in excess of such fundraising, on January 30, 2023, the Board suspended the SRP. In connection with such suspension, the Board also suspended the primary portion of the Second Public Offering (the “Primary Offering”) and the DRP, effective as of February 10, 2023. The Primary Offering terminated on November 1, 2025. The SRP and the DRP each remains suspended unless and until such time as the Board approves their resumption.

On September 15, 2021, our registration statement on Form S-11 (File No. 333-258802) for our Preferred Stock Offering of up to 3,500,000 shares of Series A Preferred Stock was declared effective under the Securities Act. Raymond James & Associates acted as representative of the underwriters. On September 22, 2021, we issued and sold 3,500,000 shares of our Series A Preferred Stock at a public offering price of $25.00 per share. In addition, on October 15, 2021, the underwriters partially exercised their over-allotment option and purchased an additional 100,000 shares of Series A Preferred Stock. The Series A Preferred Stock is listed on the New York Stock Exchange with the ticker symbol ICR PR A.

As of September 30, 2025, we received net offering proceeds of $86.3 million from our Preferred Stock Offering. The following table summarizes certain information about the proceeds from our Preferred Stock Offering ($ in thousands):


	Series A Preferred Stock
Primary shares sold		3,600,000
Gross proceeds from primary offering	$	90,000
Underwriting discounts and commissions		2,835
Other expenses		855
Total expenses		3,690
Net offering proceeds	$	86,310

We contributed the net proceeds from the Preferred Stock Offering to our Operating Partnership, which in turn used the net proceeds to originate first mortgage loans and acquire other targeted assets in a manner consistent with our investment strategies and investment guidelines and for general corporate purposes.

Repurchases of Common Stock

We adopted an SRP, effective May 3, 2019 (currently suspended), whereby on a monthly basis, stockholders who have held our shares of common stock for at least one year may request that we repurchase all or any portion of their shares. Due to the illiquid nature of investments in real estate, we may not have sufficient liquid resources to fund repurchase requests. Because there is no public market for our shares, stockholders may have difficulty selling their shares if we choose to repurchase only some, or even none, of the shares that have been requested to be repurchased in any particular month, in our discretion, or if our Board modifies, suspends or terminates the SRP.

In addition, we have established limitations on the amount of funds we may use for repurchases during any calendar month and quarter. We may repurchase fewer shares than have been requested in any particular month to be repurchased under our SRP, or none at all, in our discretion at any time. In addition, the total amount of aggregate repurchases of shares will be limited to no more than 2% of our aggregate NAV per month and no more than 5% of our aggregate NAV per calendar quarter.

During the nine months ended September 30, 2025, we repurchased no shares of our common stock.

Repurchases of Series A Preferred Stock

Subject to certain exceptions, we may not redeem our Series A Preferred Stock until on or after September 22, 2026. Preferred stockholders may only convert their Series A Preferred Shares into Class I common stock if there is a Change of Control and we do not redeem the shares within 120 days of the Change of Control event. For the nine months ended September 30, 2025, there were no redemptions of our Series A Preferred Stock and no conversions of our Series A Preferred Stock to common stock.

On August 11, 2022, the Board authorized and approved a share repurchase program (the “Series A Preferred Repurchase Program”) pursuant to which we were permitted to repurchase up to the lesser of 1,000,000 shares or $15 million of the outstanding shares of our Series A Preferred Stock through December 31, 2022. On November 10, 2022, the Board approved to extend the Series A Preferred


Exhibit No.		Description

3.1		Articles of Amendment and Restatement of InPoint Commercial Real Estate Income, Inc. (filed as Exhibit 3.1 to the Registrant’s Registration Statement on Form 10 filed May 2, 2017 and incorporated by reference)
3.2		Articles of Amendment of InPoint Commercial Real Estate Income, Inc. (filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed April 30, 2019 and incorporated by reference)
3.3		Articles Supplementary of InPoint Commercial Real Estate Income, Inc. (filed as Exhibit 3.2 to the Registrant’s Current Report on Form 8-K filed April 30, 2019 and incorporated by reference)
3.4		Certificate of Correction of InPoint Commercial Real Estate Income, Inc. (filed as Exhibit 3.4 to the Registrant’s Quarterly Report on Form 10-Q filed August 14, 2019 and incorporated by reference)
3.5		Articles Supplementary of InPoint Commercial Real Estate Income, Inc. designating the Series A Preferred Stock (filed as Exhibit 3.5 to the Registrant’s Form 8-A filed September 22, 2021 and incorporated by reference)
3.6		Bylaws of InPoint Commercial Real Estate Income, Inc. (filed as Exhibit 3.2 to the Registrant’s Registration Statement on Form 10 filed May 2, 2017 and incorporated by reference)
4.1		Amended and Restated Distribution Reinvestment Plan (filed as Exhibit 4.1 to the Registrant’s Registration Statement on Form S-11 filed April 11, 2022 and incorporated by reference)
4.2		Form of certificate representing the Series A Preferred Stock (filed as Exhibit 4.1 to the Registrant’s Form 8-A filed September 22, 2021 and incorporated by reference)
31.1*		Certification of the Principal Executive Officer of the Registrant, pursuant to Securities Exchange Act Rule 13a-14 and 15d-14 as adopted pursuant to Section 302 of the Sarbanes‑Oxley Act of 2002
31.2*		Certification of the Principal Financial Officer of the Registrant, pursuant to Securities Exchange Act Rule 13a-14 and 15d-14 as adopted pursuant to Section 302 of the Sarbanes‑Oxley Act of 2002
32.1*		Certification of the Principal Executive Officer of the Registrant pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes‑Oxley Act of 2002
32.2*		Certification of the Principal Financial Officer of the Registrant pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes‑Oxley Act of 2002
101.INS		Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document.
101.SCH		Inline XBRL Taxonomy Extension Schema with Embedded Linkbases Document
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)


	INPOINT COMMERCIAL REAL ESTATE INCOME, INC.

	By:	/s/ Denise C. Kramer
	Name:	Denise C. Kramer
	Title:	Chief Executive Officer
		(principal executive officer)
	Date:	November 7, 2025

	By:	/s/ Catherine L. Lynch
	Name:	Catherine L. Lynch
	Title:	Chief Financial Officer
		(principal financial officer)
	Date:	November 7, 2025