InPoint Commercial Real Estate Income, Inc 8-K, filed Jun 5, 2023
InPoint Commercial Real Estate Income, Inc. (ICR-PA)
About this 8-K
InPoint Commercial Real Estate Income, Inc filed this 8-K on June 5, 2023, reporting on events of May 31, 2023.
Items reported
- Item 2.06: Material impairment
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Certain statements in this Current Report on Form 8-K constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Words such as “may,” “could,” “should,” “expect,” “intend,” “plan,” “goal,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “variables,” “potential,” “continue,” “expand,” “maintain,” “create,” “strategies,” “likely,” “will,” “would” and variations of these terms and similar expressions indicate forward-looking statements. These forward-looking statements reflect the intent, belief or current expectations of our management based on their knowledge and understanding of the business and industry, the economy and other future conditions. These statements are not factual or guarantees of future performance, and we caution stockholders not to place undue reliance on them. Actual results may differ materially from those expressed or forecasted in forward-looking statements due to a variety of risks, uncertainties and other factors, including but not limited to risks related to blind pool offerings, best efforts offerings, use of short-term financing, borrower defaults, changing interest rates, the effects of the COVID-19 pandemic, particularly on hospitality and retail properties, including our hotel, and on related mortgage loans and securities and other risks detailed in the Risk Factors section in our most recent Annual Report on Form 10-K and in subsequent filings on Form 10-Q as filed with the Securities and Exchange Commission and made available for free on our website and the SEC’s website. Forward-looking statements reflect our management’s view only as of the date they are made and may ultimately prove to be incorrect. We undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results except as required by applicable law. We intend for these forward-looking statements to be covered by the applicable safe harbor provisions created by Section 27A of the Securities Act and Section 21E of the Exchange Act.
Item 2.06 Material Impairment.
On May 31, 2023, officers of InPoint Commercial Real Estate Income, Inc. (the “Company”) determined that (i) the entry into a contract for sale by the Company of the Renaissance Chicago O’Hare Suites Hotel (the “Renaissance O’Hare”) for a purchase price of $12 million and (ii) receipt of the deposit from the buyer pursuant to that contract, which deposit is generally non-refundable, subject to certain exceptions such as the failure of closing conditions under certain specified circumstances, resulted in this asset meeting the criteria under generally accepted accounting principles to be classified as “held-for-sale.” As a result of this classification, the Company determined that it will be required to record the asset at fair value, less estimated sales costs and, therefore, recognize an impairment charge of approximately $7 million in the second quarter of 2023. The Company expects the net effect of this impairment charge and adjustments to the loss reserve for the Renaissance O'Hare to reduce the aggregate net asset value (“NAV”) attributable to its common stock outstanding by approximately $0.60 per common share, which will be reflected in the Company's next published NAV, which the Company expects to occur on or about June 15, 2023.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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INPOINT COMMERCIAL REAL ESTATE INCOME, INC. |
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Date: |
June 5, 2023 |
By: |
/s/ Mitchell A. Sabshon |
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Mitchell A. Sabshon |