0001193125-21-096833 | 10-K | XBRL Viewer | FS Credit Real Estate Income Trust INC

Collateralized loan obligation (net of deferred financing costs of $4,556 and $5,483, respectively)

152

500

Other assets

15,876

5,259

Total assets

^[1]

774,979

498,780

Liabilities

323,109

322,182

Repurchase agreements payable (net of deferred financing costs of $194 and $0, respectively)

125,266

Due to related party

15,481

6,290

Interest payable

344

773

Payable for shares repurchased

1,530

Other liabilities

3,537

3,686

Total liabilities

469,267

332,993

Commitments and contingencies (See Note 10)

Preferred stock, $0.01 par value, 50,000,000 shares authorized, 125 and 0 issued and outstanding, respectively

Additional paid-in capital

303,783

165,082

Accumulated other comprehensive income (loss)

Retained earnings

1,802

619

Total liabilities and stockholders' equity

305,712

165,787

774,979

498,780

Common Class F [Member]

Common Class Y [Member]

Common Class T [Member]

Common Class S [Member]

Common Class D [Member]

Common Class M [Member]

Common Class I [Member]

$ 22

$ 12

[1]

The December 31, 2020 and 2019 consolidated balance sheets include assets of a consolidated variable interest entity, or VIE, that can only be used to settle obligations of the VIE, and liabilities of the consolidated VIE for which creditors do not have recourse to FS Credit Real Estate Income Trust, Inc. As of December 31, 2020 and 2019, assets of the VIE totaled $429,771 and $427,455, respectively, and liabilities of the VIE totaled $323,336 and $322,946, respectively. See Note 9 to the consolidated financial statements for further details.

Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands

Dec. 31, 2020

Dec. 31, 2019

Preferred stock, par value

$ 152

$ 500

$ 0.01

Preferred stock, shares authorized

50,000,000

Preferred stock, shares issued

125

Preferred stock, shares outstanding

125

^[1]

$ 774,979

$ 498,780

Variable Interest Entity, Primary Beneficiary [Member]

469,267

332,993

429,771

427,455

Repurchase agreements payable [Member]

323,336

322,946

Collateralized Loan Obligations [Member]

194

Preferred stock, par value

$ 4,556

$ 5,483

$ 0.001

Preferred stock, shares issued

45,288

Common Class F [Member]

$ 0.01

125,000,000

912,469

1,475,155

912,469

1,475,155

Common Class Y [Member]

$ 0.01

125,000,000

137,116

141,116

137,116

141,116

Common Class T [Member]

$ 0.01

125,000,000

1,245,658

981,836

1,245,658

981,836

Common Class S [Member]

$ 0.01

125,000,000

5,778,640

1,351,587

5,778,640

1,351,587

Common Class D [Member]

$ 0.01

125,000,000

546,298

322,602

546,298

322,602

Common Class M [Member]

$ 0.01

125,000,000

1,971,039

1,357,818

1,971,039

1,357,818

Common Class I [Member]

$ 0.01

300,000,000

2,171,528

1,230,360

2,171,528

1,230,360

[1]

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Net interest income
Interest income	$ 38,127	$ 22,378	$ 10,540
Less: Interest expense	(11,352)	(10,441)	(5,604)
Net interest income	26,775	11,937	4,936
Other expenses
Management and performance fees	4,168	904	114
General and administrative expenses	5,216	3,867	3,102
Less: Expense limitation	(1,023)	(1,948)	(2,271)
Net other expenses	8,361	2,823	945
Other income (loss)
Net realized gain (loss) on mortgage-backed securities available-for-sale	(556)
Total other income (loss)	(556)
Net income	17,858	9,114	3,991
Preferred stock dividends	(14)
Net income attributable to FS Credit Real Estate Income Trust, Inc.	$ 17,844	$ 9,114	$ 3,991
Per share information—basic and diluted
Net income per share of common stock (earnings per share)	$ 1.70	$ 1.83	$ 1.84
Weighted average common stock outstanding	10,473,787	4,970,324	2,165,753

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Net income	$ 17,858	$ 9,114	$ 3,991
Other comprehensive income
Net change in unrealized gain (loss) on mortgage-backed securities available-for-sale	(17)	27	(10)
Total other comprehensive income (loss)	(17)	27	(10)
Comprehensive income	$ 17,841	$ 9,141	$ 3,981

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Consolidated Statements of Changes in Equity - USD ($) $ in Thousands	Total	Common Class F [Member]	Common Class Y [Member]	Common Class T [Member]	Common Class S [Member]	Common Class D [Member]	Common Class M [Member]	Common Class I [Member]	Additional Paid-In Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Earnings (Accumulated Deficit) [Member]
Balance at beginning of period, amount at Dec. 31, 2017	$ 29,339	$ 10	$ 2						$ 29,514		$ (187)
Common stock issued	52,627	14		$ 1		$ 1	$ 4	$ 1	52,606
Distributions declared	(3,947)										(3,947)
Proceeds from distribution reinvestment plan	2,459	1							2,458
Redemptions of common stock	(100)								(100)
Stockholder servicing fees	(923)								(923)
Net income	3,991										3,991
Other comprehensive income (loss)	(10)									$ (10)
Balance at end of period, amount at Dec. 31, 2018	83,436	25	2	1		1	4	1	83,555	(10)	(143)
Common stock issued	112,693			9	$ 14	2	10	11	112,647
Distributions declared	(8,352)										(8,352)
Proceeds from distribution reinvestment plan	3,196	1							3,195
Redemptions of common stock	(28,766)	(11)	(1)						(28,754)
Stockholder servicing fees	(5,561)								(5,561)
Net income	9,114										9,114
Other comprehensive income (loss)	27									27
Balance at end of period, amount at Dec. 31, 2019	165,787	15	1	10	14	3	14	12	165,082	17	619
Common stock issued	185,293			3	46	2	8	14	185,220
Preferred stock issued	125								125
Distributions declared	(16,661)										(16,661)
Proceeds from distribution reinvestment plan	5,431				1		1		5,429
Redemptions of common stock	(41,632)	(6)		(1)	(3)		(3)	(4)	(41,615)
Stockholder servicing fees	(10,416)								(10,416)
Offering costs	(42)								(42)
Net income	17,858										17,858
Dividends on preferred stock	(14)										(14)
Other comprehensive income (loss)	(17)									$ (17)
Balance at end of period, amount at Dec. 31, 2020	$ 305,712	$ 9	$ 1	$ 12	$ 58	$ 5	$ 20	$ 22	$ 303,783		$ 1,802

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities
Net income	$ 17,858	$ 9,114	$ 3,991
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Amortization of deferred fees on loans and debt securities	(1,091)	(689)	(296)
Amortization of deferred financing costs	2,438	1,319	888
Net realized loss on sale of mortgage-backed securities available-for-sale	556
Changes in assets and liabilities
Reimbursement due from sponsor	56	208	(167)
Interest receivable	(2,100)	(366)	(563)
Other assets	5,105	(26)	(18)
Due to related party	9,191	5,378	571
Interest payable	(429)	469	265
Other liabilities	(9,807)	(4,336)	527
Net cash provided by (used in) operating activities	21,777	11,071	5,198
Cash flows used in investing activities
Origination and fundings of loans receivable	(358,384)	(199,128)	(191,437)
Principal collections from loans receivable	49,567	27,037	2,455
Exit and extension fee received on loans receivable	467	130
Purchases of mortgage-backed securities available-for-sale	(25,555)	(5,274)	(2,000)
Principal repayments of mortgage-backed securities available-for-sale	31,633	637	3
Purchases of mortgage-backed securities held-to-maturity	(37,099)
Net cash used in investing activities	(339,371)	(176,598)	(190,979)
Cash flows from financing activities
Issuance of common stock	185,293	112,693	52,627
Redemptions of common stock	(40,164)	(28,804)
Stockholder distributions paid	(10,777)	(4,744)	(1,231)
Stockholder servicing fees	(1,225)	(186)	(11)
Offering costs paid	(42)
Borrowings under repurchase agreements	193,678	152,627	168,426
Repayments under repurchase agreements	(68,218)	(311,753)	(32,550)
Borrowings under credit facility	31,000	18,700
Repayments under credit facility	(31,000)	(18,700)
Proceeds from issuance of collateralized loan obligation		327,665
Payment of deferred financing costs	(1,357)	(6,424)	(1,314)
Proceeds from issuance of preferred stock	125
Net cash provided by (used in) financing activities	257,313	241,074	185,947
Total increase (decrease) in cash, cash equivalents and restricted cash	(60,281)	75,547	166
Cash, cash equivalents and restricted cash at beginning of year	78,155	2,608	2,442
Cash, cash equivalents and restricted cash at end of year	17,874	78,155	2,608
Supplemental disclosure of cash flow information and non-cash financial activities
Payments of interest	9,343	8,653	4,451
Accrued stockholder servicing fee	9,191	5,375	912
Distributions payable	1,122	669	257
Reinvestment of stockholder distributions	5,431	3,196	2,459
Payable for shares repurchased	1,530	62	$ 100
Loan principal payments held by servicer	$ 15,722	$ 5,212

Principal Business and Organization

12 Months Ended

Dec. 31, 2020

Principal Business and Organization

Note 1. Principal Business and Organization

FS Credit Real Estate Income Trust, Inc., or the Company, was incorporated under the general corporation laws of the State of Maryland on November 7, 2016 and formally commenced investment operations on September 13, 2017. The Company is currently conducting a public offering of up to $2,750,000 of its Class T, Class S, Class D, Class M and Class I shares of common stock pursuant to a registration statement on Form

S-11

filed with the Securities and Exchange Commission, or SEC, consisting of up to $2,500,000 in shares in its primary offering and up to $250,000 in shares pursuant to its distribution reinvestment plan. The Company is also conducting a private offering of shares of its Class Y common stock and previously conducted a private offering of its Class F common stock. The Company is managed by FS Real Estate Advisor, LLC, or FS Real Estate Advisor, a subsidiary of the Company’s sponsor, Franklin Square Holdings, L.P., which does business as FS Investments, or FS Investments, a national sponsor of alternative investment funds designed for the individual investor. FS Real Estate Advisor has engaged Rialto Capital Management, LLC, or Rialto, to act as its

sub-adviser.

The Company has elected to be taxed as a real estate investment trust, or REIT, for U.S. federal income tax purposes commencing with its taxable year ended December 31, 2017. The Company intends to be an investment vehicle of indefinite duration focused on real estate debt investments and other real estate-related assets. The shares of common stock are generally intended to be sold and repurchased by the Company on a continuous basis. The Company intends to conduct its operations so that it is not required to register under the Investment Company Act of 1940, as amended, or the 1940 Act.

The Company’s primary investment objectives are to: provide current income in the form of regular, stable cash distributions to achieve an attractive dividend yield; preserve and protect invested capital; realize appreciation in net asset value, or NAV, from proactive investment management and asset management; and provide an investment alternative for stockholders seeking to allocate a portion of their long-term investment portfolios to commercial real estate debt with lower volatility than public real estate companies.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 2. Summary of Significant Accounting Policies

Basis of Presentation:

The accompanying consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP. The consolidated financial statements include both the Company’s accounts and the accounts of its wholly owned subsidiaries and a variable interest entity, or VIE, of which the Company is the primary beneficiary, as of December 31, 2020. All significant intercompany transactions have been eliminated in consolidation. The Company has evaluated the impact of subsequent events through the date the consolidated financial statements were issued.

Use of Estimates:

The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Principles of Consolidation:

Financial Accounting Standards Board, or FASB, Accounting Standards Codification Topic 810—Consolidation, or ASC Topic 810, provides guidance on the identification of a VIE (a variable interest entity for which control is achieved through means other than voting rights) and the determination of which business enterprise, if any, should consolidate the VIE. An entity is considered a VIE if any of the following applies: (1) the equity investors (if any) lack one or more of the essential characteristics of a controlling financial interest; (2) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support; or (3) the equity investors have voting rights that are not proportionate to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest.

The Company consolidates VIEs in which it is considered to be the primary beneficiary. The primary beneficiary is defined as the entity having both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the VIE’s performance; and (2) the obligation to absorb losses and right to receive the returns from the VIE that would be significant to the VIE. The Company determines whether it is the primary beneficiary of an entity subject to consolidation based on a qualitative assessment of the VIE’s capital structure, contractual terms, nature of the VIE’s operations and purpose and the Company’s relative exposure to the related risks of the VIE on the date it becomes initially involved in the VIE. The Company reassesses its VIE determination with respect to an entity on an ongoing basis.

Cash, Cash Equivalents and Restricted Cash:

The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company invests its cash in overnight institutional money market funds. As of December 31, 2020 and 2019, the Company’s investment in overnight institutional money market funds was $1,000 and $75,560, respectively. The Company’s uninvested cash is maintained with high credit quality financial institutions, which are members of the Federal Deposit Insurance Corporation. Restricted cash primarily represents cash held in an account to fund additional collateral interests within the collateralized loan obligation.

The following table provides a reconciliation of cash, cash equivalents and restricted cash in the Company’s consolidated balance sheets to the total amount shown in the Company’s consolidated statements of cash flows:


	December 31,
	2020		2019
Cash and cash equivalents	$	15,707	$	40,214
Restricted cash		2,167		37,941

Total cash, cash equivalents and restricted cash	$	17,874	$	78,155

Loans Receivable and Provision for Loan Losses:

The Company originates and purchases commercial real estate debt and related instruments generally to be held as long-term investments at amortized cost. The Company is required to periodically evaluate each of these loans for possible impairment. Impairment is indicated when it is deemed probable that the Company will not be able to collect all amounts due to it pursuant to the contractual terms of the loan. If a loan is determined to be impaired, the Company writes down the loan through a charge to the provision for loan losses. Impairment of these loans, which are collateral dependent, is measured by comparing the estimated fair value of the underlying collateral, less costs to sell, to the book value of the respective loan. These valuations require significant judgments, which include assumptions regarding capitalization rates, leasing, creditworthiness of major tenants, occupancy rates, availability of financing, exit plan, loan sponsorship, actions of other lenders, and other factors deemed necessary by FS Real Estate Advisor and Rialto. Actual losses, if any, could ultimately differ from these estimates. FS Real Estate Advisor and Rialto perform a quarterly review of the Company’s portfolio of loans.

In connection with this review, FS Real Estate Advisor and Rialto assess the risk factors of each loan and assign a risk rating based on a variety of factors, including, without limitation,

loan-to-value

ratio, or LTV, debt yield, property type, geographic and local market dynamics, physical condition, cash flow volatility, leasing and tenant profile, loan structure and exit plan, and project sponsorship. Based on a

5-point

scale, the Company’s loans are rated “1” through “5”, from less risk to greater risk, which ratings are defined as follows:


Loan Risk Rating		Summary Description
1		Very Low Risk
2		Low Risk
3		Medium Risk
4		High Risk/Potential for Loss: A loan that has a risk of realizing a principal loss
5		Impaired/Loss Likely: A loan that has a very high risk of realizing a principal loss or has otherwise incurred a principal loss

Mortgage-backed Securities:

The Company designates its mortgage-backed securities as

held-to-maturity

available-for-sale

depending on the investment strategy and ability to hold such securities to maturity. Mortgage-backed securities are classified as

held-to-maturity

when the Company intends and has the ability to hold until maturity.

Held-to-maturity

securities are stated at amortized cost on the consolidated balance sheets. Mortgage-backed securities the Company does not hold for the purpose of selling in the near-term or may dispose of prior to maturity, are classified as

available-for

sale and are reported at fair value on the consolidated balance sheets with changes in fair value recorded in other comprehensive income.

The Company regularly monitors its mortgage-backed securities to ensure investments that may be other-than-temporarily impaired are timely identified, properly valued and charged against earnings in the proper period. The determination that a security has incurred an other-than-temporary decline in value requires the judgment of management. Assessment factors include, but are not limited to, the length of time and the extent to which the market value has been less than amortized cost, the financial condition and rating of the issuer, and the intent to sell or whether it is more likely than not that the Company will be required to sell.

Fair Value of Financial Instruments:

Accounting Standards Codification Topic 820,

Fair Value Measurements and Disclosures

, or ASC Topic 820, defines fair value, establishes a framework for measuring fair value, and requires certain disclosures about fair value measurements under GAAP. Specifically, this guidance defines fair value based on exit price, or the price that would be received upon the sale of an asset or the transfer of a liability in an orderly transaction between market participants at the measurement date.

ASC Topic 820 also establishes a fair value hierarchy that prioritizes and ranks the level of market price observability used in measuring financial instruments. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument, and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination, as follows:


Level 1:		Generally includes only unadjusted quoted prices that are available in active markets for identical financial instruments as of the reporting date.

Level 2:		Pricing inputs include quoted prices in active markets for similar instruments, quoted prices in less active or inactive markets for identical or similar instruments where multiple price quotes can be obtained, and other observable inputs, such as interest rates, yield curves, credit risks, and default rates.

Level 3:		Pricing inputs are unobservable for the financial instruments and include situations where there is little, if any, market activity for the financial instrument. These inputs require significant judgment or estimation by management or third parties when determining fair value and generally represent anything that does not meet the criteria of Levels 1 and 2.

The estimated value of each asset reported at fair value using Level 3 inputs is determined by an internal committee composed of members of senior management of FS Real Estate Advisor.

Certain of the Company’s other assets are reported at fair value either (i) on a recurring basis, as of each

quarter-end,

or (ii) on a nonrecurring basis, as a result of impairment or other events. The Company generally values its assets recorded at fair value by either (i) discounting expected cash flows based on assumptions regarding the collection of principal and interest and estimated market rates, or (ii) obtaining assessments from third-party dealers. For collateral-dependent loans that are identified as impaired, the Company measures impairment by comparing FS Real Estate Advisor’s estimation of fair value of the underlying collateral, less costs to sell, to the book value of the respective loan. These valuations may require significant judgments, which include assumptions regarding capitalization rates, leasing, creditworthiness of major tenants, occupancy rates, availability of financing, exit plan, loan sponsorship, actions of other lenders, and other factors deemed necessary by FS Real Estate Advisor and Rialto.

The Company is also required by GAAP to disclose fair value information about financial instruments that are not otherwise reported at fair value in the Company’s consolidated balance sheets, to the extent it is practicable to estimate a fair value for those instruments. These disclosure requirements exclude certain financial instruments and all

non-financial

instruments.

The following methods and assumptions are used to estimate the fair value of each class of financial instruments, for which it is practicable to estimate that value:

•

Cash and cash equivalents: The carrying amount of cash on deposit and in money market funds approximates fair value.

•

Restricted cash: The carrying amount of restricted cash approximates fair value.

•

Loans receivable, net: The fair values for these loans were estimated by FS Real Estate Advisor based on discounted cash flow methodology taking into consideration factors, including capitalization rates, discount rates, leasing, occupancy rates, availability and cost of financing, exit plan, sponsorship, actions of other lenders, and indications of market value from other market participants.

•

Mortgage-backed securities

available-for-sale:

The fair values for these investments were based on indicative deal quotes.

•

Mortgage-backed securities

held-to-maturity:

The fair values for these investments were estimated by FS Real Estate Advisor based on a discounted cash flow methodology pursuant to which a discount rate or market yield is used to discount the estimated future cash flows expected to be received from the underlying investment, which include both future principal and interest payments. Significant increases or decreases in the discount rate or market yield would result in a decrease or increase in the fair value measurement.

•

Collateralized loan obligation, repurchase obligations and credit facility: The fair values for these instruments were estimated based on the rate at which similar credit facilities would have currently been priced.

Deferred Financing Costs:

Deferred financing costs include issuance and other costs related to the Company’s debt obligations. The deferred financing costs related to the Company’s collateralized loan obligation and repurchase agreements are recorded as a reduction in the net book value of the related liability on the Company’s consolidated balance sheets. Deferred financing costs related to the Company’s revolving credit facility and facilities that are undrawn as of the reporting date are recorded as an asset on the Company’s consolidated balance sheets. These costs are amortized as interest expense using the straight-line method over the term of the related obligation, which approximates the effective interest method.

Revenue Recognition:

Security transactions are accounted for on the trade date. The Company records interest income from our loans receivable portfolio on an accrual basis to the extent that the Company expects to collect such amounts. Discounts or premiums associated with the investment securities are amortized or accreted into interest income as a yield adjustment on the effective interest method, based on expected cash flows through the expected maturity date of the investment. On at least a quarterly basis, the Company reviews and, if appropriate, makes adjustments to its cash flow projections. The Company records dividend income on the

ex-dividend

date. The Company does not accrue as a receivable interest or dividends on loans and securities if there is reason to doubt the collectability of such income. Any loan origination fees to which the Company is entitled, loan exit fees, original issue discount and market discount are capitalized and such amounts are amortized as interest income over the respective term of the investment. Upon the prepayment of a loan or security, any unamortized loan origination fees to which the Company is entitled are recorded as fee income. The Company records prepayment premiums on loans and securities as fee income when it receives such amounts.

Organization Costs:

Organization costs include, among other things, the cost of incorporating, including the cost of legal services and other fees pertaining to the Company’s organization. These costs will be expensed as incurred and recorded as a component of general and administrative expenses on the Company’s consolidated statement of operations. During the period from November 7, 2016 (Inception) to September 13, 2017 (Commencement of Operations), the Company incurred organization costs of $243, which were paid on its behalf by FS Investments (see Note 6).

Offering Costs:

Offering costs primarily include, among other things, marketing expenses and printing, legal and due diligence fees and other costs pertaining to the Company’s continuous public offering of shares of its common stock, including the preparation of the registration statement and salaries and direct expenses of FS Real Estate Advisor’s personnel, employees of its respective affiliates and others while engaged in such activities. The Company will charge offering costs against additional

paid-in

capital on the consolidated balance sheets as it raises proceeds in its continuous public offering in excess of $250,000. In April 2020, FS Real Estate Advisor agreed not to seek reimbursement of offering costs previously incurred until such time as it determined that the Company had achieved economies of scale sufficient to ensure that it could bear a reasonable level of expenses in relation to its income. The Company began reimbursing FS Real Estate Advisor in September 2020 and, as such, FS Real Estate Advisor may be reimbursed for any organization and offering expenses that it or Rialto has incurred on the Company’s behalf, up to a cap of 0.75% of gross proceeds raised after such time. During the period from November 7, 2016 (Inception) to December 31, 2020, the Company incurred offering costs of $12,830, which were paid on its behalf by FS Investments (see Note 6).

Income Taxes:

The Company elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, or the Code, commencing with its taxable year ended December 31, 2017. In order to maintain its status as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of its annual REIT taxable income to its stockholders. As a REIT, the Company generally will not be subject to federal income tax on income that it distributes to stockholders. If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal income tax on its taxable income at regular corporate income tax rates and generally will not be permitted to qualify for treatment as a REIT for federal income tax purposes for the four taxable years following the year during which qualification is lost unless the Internal Revenue Service grants the Company relief under certain statutory provisions.

Uncertainty in Income Taxes

: The Company evaluates each of its tax positions to determine if they meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax benefits or liabilities in the consolidated financial statements. Recognition of a tax benefit or liability with respect to an uncertain tax position is required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Company recognizes interest and penalties, if any, related to unrecognized tax liabilities as income tax expense in the consolidated statements of operations. During the years ended December 31, 2020, 2019 and 2018, the Company did not incur any interest or penalties and none are accrued at December 31, 2020.

Stockholder Servicing Fees:

The Company follows the guidance in Accounting Standards Codification Topic 405,

Liabilities

, when accounting for stockholder servicing fees. The Company will pay stockholder servicing fees over time on its shares of Class T, Class S, Class D and Class M common stock as described in Note 6. The Company records stockholder servicing fees as a reduction to additional

paid-in

capital and records the related liability in an amount equal to its best estimate of the fees payable in relation to the shares of Class T, Class S, Class D and Class M common stock on the date such shares are issued. The liability will be reduced over time, as the fees are paid to the dealer manager, or adjusted if the fees are no longer payable.

Recent Accounting Pronouncements:

In June 2016, the FASB, issued ASU

2016-13,

Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326)

, or

ASU 2016-13.

ASU

2016-13

significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. ASU

2016-13

will replace the “incurred loss” model under existing guidance with an “expected loss” model for instruments measured at amortized cost and require entities to record allowances for

available-for-sale

debt securities rather than reduce the carrying amount, as they do today under the other than-temporary impairment model. It also simplifies the accounting model for purchased credit-impaired debt securities and loans. For public entities, the new standard is effective during the interim and annual periods beginning after December 15, 2019, with early adoption permitted. In November 2019, the FASB issued ASU

2019-10,

Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instrument (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) Effective Dates,

which deferred the effective date of ASU

2016-13

for smaller reporting companies until fiscal years beginning after December 15, 2022. The Company, as a smaller reporting company, continues to evaluate the impact of this update on its consolidated financial statements.

Loans Receivable

12 Months Ended

Dec. 31, 2020

Receivables [Abstract]

Loans Receivable

Note 3. Loans Receivable

The following table details overall statistics for the Company’s loans receivable portfolio as of December 31, 2020 and 2019:


	December 31,
	2020			2019
Number of loans		35			24
Principal balance	$	699,250		$	405,985
Net book value	$	700,149		$	406,645
Unfunded loan commitments (1)	$	100,389		$	44,226
Weighted-average cash coupon (2)		L+4.25	%		L+4.22	%
Weighted-average all-in yield (2)		L+4.35	%		L+4.39	%
Weighted-average maximum maturity (years) (3)		3.7			3.6

(1)	The Company may be required to provide funding when requested by the borrower in accordance with the terms of the underlying agreements.

(2)	The Company’s floating rate loans are indexed to the London Interbank Offered Rate, or LIBOR. In addition to cash coupon, all-in yield includes accretion of discount (amortization of premium) and accrual of exit fees.

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

For the years ended December 31, 2020 and 2019, the activity in the Company’s loan portfolio was as follows:


	For the Year Ended December 31,
	2020			2019
Balance at beginning of period	$	406,645		$	239,207
Loan fundings		358,384			199,128
Loan repayments		(65,289	)		(32,249	)
Amortization of deferred fees on loans		876			689
Exit and extension fees received on loans receivable		(467	)		(130	)

Balance at end of period	$	700,149		$	406,645

The following tables detail the property type and geographic location of the properties securing the loans in the Company’s portfolio as of December 31, 2020 and 2019:


	December 31, 2020					December 31, 2019
Property Type	Net Book Value		Percentage			Net Book Value		Percentage
Office	$	174,483		25	%	$	121,151		30	%
Industrial		168,876		24	%		30,019		7	%
Multifamily		130,648		19	%		81,111		20	%
Mixed Use		91,556		13	%		76,833		19	%
Hospitality		62,759		9	%		56,221		14	%
Retail		52,128		7	%		41,310		10	%
Self Storage		19,699		3	%		—		—

Total	$	700,149		100	%	$	406,645		100	%


	December 31, 2020					December 31, 2019
Geographic Location (1)	Net Book Value		Percentage			Net Book Value		Percentage
South	$	311,123		44	%	$	163,486		40	%
West		201,318		29	%		80,319		20	%
Northeast		168,009		24	%		152,874		38	%
Various		19,699		3	%		—		—
Midwest		—		—			9,966		2	%

Total	$	700,149		100	%	$	406,645		100	%

(1)	As defined by the United States Department of Commerce, Bureau of the Census.

Loan Risk Rating

As further described in Note 2, FS Real Estate Advisor and Rialto assess the risk factors of each loan and assign a risk rating based on a variety of factors, including, without limitation,

loan-to-value

5-point

scale, the Company’s loans are rated “1” through “5”, from less risk to greater risk, which ratings are defined in Note 2.

The following table allocates the net book value of the Company’s loans receivable portfolio based on the Company’s internal risk ratings:


	December 31, 2020							December 31, 2019
Risk Rating	Number of Loans		Net Book Value		Percentage			Number of Loans		Net Book Value		Percentage
1		—	$	—		—			—	$	—		—
2		—		—		—			—		—		—
3		34		689,104		98	%		24		406,645		100	%
4		1		11,045		2	%		—		—		—
5		—		—		—			—		—		—

Total		35	$	700,149		100	%		24	$	406,645		100	%

The Company did not have any impaired loans,

non-accrual

loans, or loans in maturity default as of December 31, 2020 or December 31, 2019.

Mortgage-Backed Securities

12 Months Ended

Dec. 31, 2020

Mortgage-Backed Securities

Note 4. Mortgage-Backed Securities

Mortgage-backed securities,

available-for-sale

Commercial mortgage-backed securities, or CMBS, classified as

available-for-sale

are reported at fair value on the consolidated balance sheets with changes in fair value recorded in other comprehensive income.

The table below summarizes various attributes of the Company’s investments in

available-for-sale

CMBS as of December 31, 2020 and 2019, respectively.


					Gross Unrealized						Weighted Average
	Outstanding Face Amount		Amortized Cost Basis		Gains		Losses		Fair Value		Coupon (1)			Remaining Duration (years)
December 31, 2020
CMBS, available-for-sale		—		—		—		—		—		—			—
December 31, 2019
CMBS, available-for-sale	$	6,634	$	6,634	$	17	$	—	$	6,651		3.20	%		1.7

(1)	Calculated using the one-month LIBOR rate of 1.80% as of December 31, 2019.

During the year ended December 31, 2020, the Company sold all of its investments in

available-for-sale

CMBS for net proceeds of $16,082, from which the Company realized a net loss of $556. The Company did not have any realized gains or losses during the years ended December 31, 2019 or 2018.

Mortgage-backed securities,

held-to-maturity

The table below summarizes various attributes of the Company’s investments in

held-to-maturity

CMBS as of December 31, 2020 and 2019, respectively.


	Net Carrying Amount (Amortized Cost)		Gross Unrecognized Holding Gains		Gross Unrecognized Holding Losses		Fair Value
December 31, 2020
CMBS, held-to-maturity	$	37,314		—		—	$	37,314
December 31, 2019
CMBS, held-to-maturity		—		—		—		—

The table below summarizes the maturities of the Company’s investments in

held-to-maturity

CMBS as of December 31, 2020:


	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
CMBS, held-to-maturity	$	37,314		—		—	$	37,314		—

Financing Arrangements

12 Months Ended

Dec. 31, 2020

Related Party Transactions

Financing Arrangements

Note 5. Financing Arrangements

The following tables present summary information with respect to the Company’s outstanding financing arrangements as of December 31, 2020 and 2019:

As of December 31, 2020

Arrangement

(1)

Type of
Arrangement

Rate

Amount
Outstanding

Amount
Available

Maturity Date

2019-FL1

Notes

(2)

Collateralized
Loan Obligation

L+1.20% - 2.50%

(3)

327,665

—

December 18, 2036

(4)

WF-1

Facility

(5)

Repurchase

L+2.15% - 2.50%

(6)

29,889

70,111

August 30, 2021

GS-1

Facility

(7)

Repurchase

L+1.75% - 2.75%

(8)

95,571

79,429

January 26, 2021

CNB Facility

Revolving
Credit Facility

L+2.25%

(2)

—

25,000

August 23, 2022

Total

453,125

174,540

(1)	The carrying amount outstanding under the facilities approximates their fair value.

(2)	The carrying amount and fair value of assets transferred as collateral underlying the 2019-FL1 Notes is $411,455 and $409,497, respectively.

(3)	LIBOR is subject to a 0.00% floor.

(4)	The 2019-FL1 Notes mature on the December 2036 payment date, as defined in the Indenture governing the 2019-FL1 Notes and calculated based on the current U.S. federal holidays.

(5)	The carrying amount and fair value of assets transferred as collateral underlying the facility is $39,945 and $39,977, respectively.

(6)	LIBOR is subject to a 0.00% floor. FS CREIT Finance WF-1 LLC, or WF-1, and Wells Fargo Bank, National Association, or Wells Fargo, may mutually agree on rates outside this range or a different LIBOR floor on an asset by asset basis.

(7)	The carrying amount and fair value of assets transferred as collateral underlying the facility is $127,512 and $126,995 respectively.

(8)	LIBOR is subject to a 0.50% floor. FS CREIT Finance GS-1 LLC, or GS-1, and Goldman Sachs Bank USA, or Goldman Sachs, may mutually agree on rates outside this range or a different LIBOR floor on an asset by asset basis.

As of December 31, 2019

Arrangement

(1)

Type of
Arrangement

Rate

Amount
Outstanding

Amount
Available

Maturity Date

2019-FL1

Notes

Collateralized
Loan Obligation

L+1.20% - 2.50%

(2)

327,665

—

December 18, 2036

(3)

WF-1

Facility

Repurchase

L+2.15% - 2.50%

(4)

—

150,000

August 30, 2020

GS-1

Facility

Repurchase

L+1.75% - 2.75%

(5)

—

175,000

January 26, 2020

CNB Facility

Revolving
Credit Facility

L+2.25%

(2)

—

10,000

August 23, 2021

Total

327,665

335,000

(1)	The carrying amount outstanding under the facilities approximates their fair value.

(2)	LIBOR is subject to a 0.00% floor.

(3)	The 2019-FL1 Notes mature on the December 2036 payment date, as defined in the Indenture governing the 2019-FL1 Notes and calculated based on the current U.S. federal holidays.

(4)	LIBOR is subject to a 0.00% floor. WF-1 and Wells Fargo, may mutually agree on rates outside this range or a different LIBOR floor on an asset by asset basis.

(5)	LIBOR is subject to a 0.50% floor. GS-1 and Goldman Sachs, may mutually agree on rates outside this range or a different LIBOR floor on an asset by asset basis.

The Company’s average borrowings and weighted average interest rate, including the effect of

non-usage

fees, for the year ended December 31, 2020 were $413,236 and 2.12%, respectively. The Company’s average borrowings and weighted average interest rate, including the effect of

non-usage

fees, for the year ended December 31, 2019 were $206,149 and 4.36%, respectively.

Under its financing arrangements, the Company has made certain representations and warranties and is required to comply with various covenants, reporting requirements and other customary requirements for similar financing arrangements. The Company was in compliance with all covenants required by its financing arrangements as of December 31, 2020 and 2019.

2019-FL1

Notes

On December 5, 2019, the Company issued $327,665 of collateralized loan obligation notes, or the CLO Transaction, through FS Rialto

Sub-REIT

LLC, or the

Sub-REIT,

a subsidiary real estate investment trust of the Company, and two wholly-owned financing subsidiaries of the

Sub-REIT,

FS Rialto

2019-FL1

Issuer, Ltd., an exempted company with limited liability under the laws of the Cayman Islands, as issuer, or the Issuer, and FS Rialto

2019-FL1

Co-Issuer,

LLC, a Delaware limited liability company,

as co-issuer,

or the

Co-Issuer and,

together with the Issuer, the CLO Issuers.

The CLO Issuers issued five classes of notes, or the Offered Notes, (i) $224,837 Class A Senior Secured Floating Rate Notes Due 2036, which bear interest at LIBOR plus 1.20% per annum plus, on and after the October 2025 payment date, an additional 0.25% per annum, (ii) $47,418

Class A-S

Second Priority Secured Floating Rate Notes Due 2036, which bear interest at LIBOR plus 1.45% per annum plus, on and after the October 2025 payment date, 0.25% per annum, (iii) $27,173 Class B Third Priority Secured Floating Rate Notes Due 2036, which bear interest at LIBOR plus 1.90% per annum plus, on and after the October 2025 payment date, 0.50% per annum, (iv) $28,237 Class C Fourth Priority Secured Floating Rate Notes Due 2036, which bear interest at LIBOR plus 2.50% per annum plus, on and after the October 2025 payment date, 0.50% per annum, and (v) $32,501 Class D Fifth Priority Secured Floating Rate Notes Due 2036, or the Class D Notes, which bear interest at LIBOR plus 2.80% per annum plus, on and after the October 2025 payment date, 0.50% per annum. In addition, the Issuer further issued two classes of notes, or together with the Offered Notes, the

2019-FL1

Notes, (i) $9,590 Class E Sixth Priority Floating Rate Notes Due 2036, or the Class E Notes, which bear interest at LIBOR plus 4.50% per annum plus, on and after the January 2022 payment date, 0.50% per annum, and (ii) $11,188 Class F Seventh Priority Floating Rate Notes Due 2036, or the Class F Notes, which bear interest at LIBOR plus 6.00% per annum plus, on and after the January 2022 payment date, 0.50% per annum. In addition, concurrently with the issuance of the

2019-FL1

Notes, the Issuer issued 45,288 Preferred Shares, par value $0.001 per share, and with an aggregate liquidation preference equal to $1,000 per share, or the Preferred Shares. The

2019-FL1

Notes will mature at par on the December 2036 payment date (December 18, 2036 when calculated using the current U.S. federal holidays), unless redeemed or repaid prior thereto. The Company serves as the collateral manager for the Issuer.

The CLO Issuers issued or

co-issued the

2019-FL1Notes, as applicable, pursuant to the terms of an Indenture, dated as of December 5, 2019, or the Indenture, by and among the CLO Issuers, the Company, as advancing agent, Wilmington Trust, National Association, as trustee, and Wells Fargo, as note administrator and custodian.

FS Rialto

2019-FL1

Holder, LLC, which is an indirect wholly-owned subsidiary of the Company and a direct wholly-owned subsidiary of the

Sub-REIT,

acquired 100% of the Class D Notes, the Class E Notes, the Class F Notes and the Preferred Shares upon issuance.

The Offered Notes are limited recourse obligations of the Issuer and

non-recourse

obligations of the

Co-Issuer

payable solely from collateral interests acquired by the Issuer and pledged under the Indenture. To the extent the collateral is insufficient to make payments in respect of the Offered Notes, none of the Issuer, the

Co-Issuer,

any of their respective affiliates nor any other person will have any obligation to pay any further amounts in respect of the Offered Notes. The Class E Notes and the Class F Notes are not secured.

As of December 31, 2020, the

2019-FL1

Notes were collateralized by a pool of interests in 21 commercial real estate loans having a total principal balance of $410,521.

The Company incurred $5,813 of issuance costs which are amortized over the remaining life of the loans that collateralized the

2019-FL1

Notes. As of December 31, 2019, $4,556 had yet to be amortized to interest expense.

WF-1

Facility

On August 30, 2017, the Company’s indirect wholly owned, special-purpose financing subsidiary,

WF-1,

as seller, entered into a Master Repurchase and Securities Contract, or, as amended, the

WF-1

Repurchase Agreement, and together with the related transaction documents, the

WF-1

Facility, with Wells Fargo, as buyer, to finance the acquisition and origination of commercial real estate whole loans or senior controlling participation interests in such loans. The maximum amount of financing available under the

WF-1

Facility as of December 31, 2020 is $100,000, which may be increased to $200,000 with the consent of Wells Fargo. Each transaction under the

WF-1

Facility has its own specific terms, such as identification of the assets subject to the transaction, sale price, repurchase price and rate.

WF-1

remains exposed to the credit risk of each asset sold to Wells Fargo under the

WF-1

Facility, because

WF-1

must repurchase each asset on a date mutually agreed by the parties at the time of its sale to Wells Fargo, and in any event no later than such asset’s maturity date. The Company has accounted for these transactions as secured borrowings.

In connection with the

WF-1

Repurchase Agreement, the Company also entered into a guarantee agreement, or the

WF-1

Guarantee, pursuant to which the Company guarantees

WF-1’s

obligations under the

WF-1

Repurchase Agreement subject to the limitations specified therein.

The

WF-1

Repurchase Agreement and

WF-1

Guarantee, as amended, contain representations, warranties, covenants, events of default and indemnities that are customary for agreements of their type. In addition,

WF-1

is required to maintain a certain minimum liquidity amount in a collateral account with Wells Fargo and the Company is required (i) to maintain its adjusted tangible net worth at an amount equal to or greater than the greater of (A) (i) 75% of all equity capital raised by the Company from and after its date of formation plus (ii) 75% of certain outstanding capital commitments minus (iii) 75% of the amounts expended by the Company for equity redemptions or repurchases from and after its date of formation and (B) 75% of the then-current maximum facility size; (ii) to maintain an earnings before interest, taxes, depreciation and amortization, or EBITDA, to interest expense ratio not less than 1.50 to 1.00; (iii) to maintain a total indebtedness to tangible net worth ratio of less than 3.00 to 1.00; and (iv) to maintain liquidity of not less than 7.5% of the amount outstanding under the

WF-1

Facility. As of December 31, 2020, the Company was in compliance with these covenants.

On August 27, 2020, the Company, as guarantor,

WF-1

and Wells Fargo, as buyer, entered into an amendment to the

WF-1

Repurchase Agreement, which provides for, among other things, (i) reduction of the maximum facility amount to $100,000, with the option to increase the maximum facility amount up to $200,000 with the consent of Wells Fargo and (ii) extension of the funding period termination date and facility maturity date to August 30, 2021.

The Company incurred $1,558 of deferred financing costs related to the

WF-1

Facility, which is being amortized to interest expense over the life of the facility. As of December 31, 2020, $131 had yet to be amortized to interest expense.

GS-1

Facility

On January 26, 2018, the Company’s indirect wholly-owned, special-purpose financing subsidiary,

GS-1,

as seller, entered into an Uncommitted Master Repurchase and Securities Contract Agreement, or as amended, the

GS-1

Repurchase Agreement, and together with the related transaction documents, the

GS-1

Facility with Goldman Sachs, as buyer, to finance the acquisition and origination of whole, performing senior commercial or multifamily floating rate mortgage loans secured by first liens on office, retail, industrial, hospitality, multifamily or other commercial properties. The maximum amount of financing available under the

GS-1

Facility as of December 31, 2020 is $175,000, which may be increased to $250,000 with the consent of Goldman Sachs if the Company meets certain equity capital thresholds. Each transaction under the

GS-1

Facility has its own specific terms, such as identification of the assets subject to the transaction, sale price, repurchase price and rate.

GS-1

remains exposed to the credit risk of each asset sold to Goldman Sachs under the

GS-1

Facility, because

GS-1

must repurchase each asset on a date mutually agreed by the parties at the time of its sale to Goldman Sachs, and in any event no later than such asset’s maturity date. The Company has accounted for these transactions as secured borrowings.

The initial availability period of the

GS-1

Facility (during which financing under the

GS-1

Facility was available for acquisition and origination of new assets) was two years. On February 18, 2020, the

GS-1

Repurchase Agreement was amended to extend the availability period to January 26, 2021 and on January 25, 2021, the

GS-1

Repurchase Agreement was amended to extend the availability period to January 26, 2022. After the end of the availability period,

GS-1

may exercise an option to commence a

one-year

amortization period, so long as certain conditions are met. During the amortization period, certain changes to the terms of the

GS-1

Facility would apply, including an increase to the rate charged on each asset financed under the

GS-1

Facility.

In connection with the

GS-1

Repurchase Agreement, the Company entered into a Guarantee Agreement, the

GS-1

Guarantee, pursuant to which the Company guarantees 50% of

GS-1’s

obligations under the

GS-1

Repurchase Agreement, subject to limitations specified therein. The

GS-1

Guarantee may become full recourse to the Company upon the occurrence of certain events, including willful bad acts by the Company or

GS-1.

The

GS-1

Repurchase Agreement and

GS-1

Guarantee, as amended, contain representations, warranties, covenants, events of default and indemnities that are customary for agreements of their type. In addition, the Company is required (i) to maintain its adjusted tangible net worth at an amount equal to or greater than (a) 75% of all equity capital raised by the Company from and after its date of formation plus (b) 75% of certain outstanding capital commitments minus (c) 75% of the amounts expended by the Company for equity redemptions or repurchases from and after its date of formation; (ii) to maintain an EBITDA to interest expense ratio not less than 1.50 to 1.00; (iii) to maintain a total indebtedness to tangible net worth ratio of less than 3.00 to 1.00; and (iv) to maintain liquidity at not less than 7.5% of the amount outstanding under the

GS-1

Facility. As of December 31, 2020, the Company was in compliance with these covenants.

The Company incurred $2,068 of deferred financing costs related to the

GS-1

Facility, which is being amortized to interest expense over the life of the facility. As of December 31, 2020, $63 had yet to be amortized to interest expense.

CNB Facility

On August 22, 2019, the Company and FS CREIT Finance Holdings LLC, a direct wholly owned subsidiary of the Company, each as a borrower, entered into a Loan and Security Agreement, or the CNB Loan Agreement, and together with the related transaction documents, the CNB Facility, with City National Bank, or CNB, as administrative agent and lender. The initial maximum committed facility amount under the CNB Facility $10,000. This amount, with the consent of CNB, may be increased to $25,000. Borrowings under the CNB Facility are subject to compliance with a borrowing base calculated based on the Company’s stockholder subscriptions and certain cash and assets held directly by the Company. On March 23, 2020, the CNB Facility was amended to, among other things, (i) increase the maximum amount of financing available from $10,000 to $15,000 and (ii) increase the minimum net asset value the Company is required to maintain from $85,000 to $100,000. On December 23, 2020, the CNB Facility was further amended to, among other things, (i) increase the maximum amount of financing available from $15,000 to $25,000 and (ii) increase the minimum net asset value the Company is required to maintain from $100,000 to $175,000.

Borrowings under the CNB Facility accrue interest at a rate equal to LIBOR plus a spread of 2.25% per annum, and borrowed amounts must be repaid no later than 180 days after the funding date of such borrowing. In addition, the borrowers pay a

non-utilization

fee quarterly in arrears in an amount equal to 0.375% per annum on the daily unused portion of the maximum facility amount. The term of the CNB Facility is two years. At the request of the Company, CNB may grant extensions of the facility termination date, so long as certain conditions are met.

The Company incurred $314 of deferred financing costs related to the CNB Facility, which is being amortized to interest expense over the life of the facility. As of December 31, 2020, $152 had yet to be amortized to interest expense.

Related Party Transactions

12 Months Ended

Dec. 31, 2020

Note 6. Related Party Transactions

Compensation of FS Real Estate Advisor and the Dealer Manager

Pursuant to the second amended and restated advisory agreement dated as of August 17, 2018, or the advisory agreement, FS Real Estate Advisor is entitled to a base management fee equal to 1.25% of the NAV for the Company’s Class T, Class S, Class D, Class M and Class I shares, payable quarterly in arrears. The payment of all or any portion of the base management fee accrued with respect to any quarter may be deferred by FS Real Estate Advisor, without interest, and may be taken in any such other quarter as FS Real Estate Advisor may determine. In calculating the Company’s base management fee, the Company will use its NAV before giving effect to accruals for such fee, stockholder servicing fees or distributions payable on its shares. The base management fee is a class-specific expense. No base management fee is paid on the Company’s Class F or Class Y shares.

FS Real Estate Advisor is also entitled to the performance fee calculated and payable quarterly in arrears in an amount equal to 10.0% of the Company’s Core Earnings (as defined below) for the immediately preceding quarter, subject to a hurdle rate, expressed as a rate of return on average adjusted capital, equal to 1.625% per quarter, or an annualized hurdle rate of 6.5%. As a result, FS Real Estate Advisor does not earn a performance fee for any quarter until the Company’s Core Earnings for such quarter exceed the hurdle rate of 1.625%. For purposes of the performance fee, “adjusted capital” means cumulative net proceeds generated from sales of the Company’s common stock other than Class F common stock (including proceeds from the Company’s distribution reinvestment plan) reduced for distributions from

non-liquidating

dispositions of the Company’s investments paid to stockholders and amounts paid for share repurchases pursuant to the Company’s share repurchase plan. Once the Company’s Core Earnings in any quarter exceed the hurdle rate, FS Real Estate Advisor will be entitled to a

“catch-up”

fee equal to the amount of Core Earnings in excess of the hurdle rate, until the Company’s Core Earnings for such quarter equal 1.806%, or 7.222% annually, of adjusted capital. Thereafter, FS Real Estate Advisor is entitled to receive 10.0% of the Company’s Core Earnings.

For purposes of calculating the performance fee, “Core Earnings” means: the net income (loss) attributable to stockholders of Class Y, Class T, Class S, Class D, Class M and Class I shares, computed in accordance with GAAP (provided that net income (loss) attributable to Class Y stockholders shall be reduced by an amount equal to the base management fee that would have been paid if Class Y shares were subject to such fee), including realized gains (losses) not otherwise included in GAAP net income (loss) and excluding

(i) non-cash

equity compensation expense, (ii) the performance fee, (iii) depreciation and amortization, (iv) any unrealized gains or losses or other similar

non-cash

items that are included in net income for the applicable reporting period, regardless of whether such items are included in other comprehensive income or loss, or in net income, and

(v) one-time

events pursuant to changes in GAAP and certain material

non-cash

income or expense items, in each case after discussions between FS Real Estate Advisor and the Company’s independent directors and approved by a majority of the Company’s independent directors. The performance fee is a class-specific expense. No performance fee is paid on the Company’s Class F shares.

Pursuant to the amended and restated

sub-advisory

agreement dated as of August 30, 2017, as amended, or the

sub-advisory

agreement, Rialto will receive 50% of all base management fees and performance fees payable to FS Real Estate Advisor.

The Company reimburses FS Real Estate Advisor and Rialto for their actual costs incurred in providing administrative services to the Company. FS Real Estate Advisor and Rialto are required to allocate the cost of such services to the Company based on objective factors such as total assets, revenues and/or time allocations. At least annually, the Company’s board of directors reviews the amount of the administrative services expenses reimbursable to FS Real Estate Advisor and Rialto to determine whether such amounts are reasonable in relation to the services provided. The Company will not reimburse FS Real Estate Advisor or Rialto for any services for which it receives a separate fee or for any administrative expenses allocated to employees to the extent they serve as executive officers of the Company.

FS Investments funded the Company’s organization and offering costs in the amount of $13,073 for the period from November 7, 2016 (Inception) to December 31, 2020. These expenses include legal, accounting, printing, mailing and filing fees and expenses, due diligence expenses of participating broker-dealers supported by detailed and itemized invoices, costs in connection with preparing sales materials, design and website expenses, fees and expenses of the Company’s transfer agent, fees to attend retail seminars sponsored by participating broker-dealers and reimbursements for customary travel, lodging, and meals, but excluding selling commissions, dealer manager fees and stockholder servicing fees. Under the advisory agreement, FS Real Estate Advisor has agreed to advance all of the Company’s organization and offering expenses on the Company’s behalf until it has raised $250,000 of gross proceeds from its public offering.

Although such amounts may be subject to reimbursement thereafter, FS Real Estate Advisor and Rialto agreed to defer the recoupment of any organization and offering expenses that may be reimbursable by the Company under the advisory agreement with respect to gross proceeds raised in the offering in excess of $250,000 until FS Real Estate Advisor, in its sole discretion, determined that the Company had achieved economies of scale sufficient to ensure that it could bear a reasonable level of expenses in relation to its income. The Company began reimbursing FS Real Estate Advisor in September 2020 and, as such, FS Real Estate Advisor may be reimbursed for any organization and offering expenses that it or Rialto has incurred on the Company’s behalf, up to a cap of 0.75% of gross proceeds raised after such time. During the year ended December 31, 2020, the Company paid $285 to FS Real Estate Advisor for organization and offering costs previously funded. As of December 31, 2020, $12,788 of organization and offering expenses previously funded remained subject to reimbursement to FS Real Estate Advisor and Rialto.

The following table describes the fees and expenses accrued under the advisory agreement during the years ended December 31, 2020, 2019 and 2018:


			Year Ended December 31,
Related Party	Source Agreement	Description	2020		2019		2018
FS Real Estate Advisor	Advisory Agreement	Base Management Fee (1)	$	2,949	$	752	$	70
FS Real Estate Advisor	Advisory Agreement	Performance Fee (2)	$	1,219	$	152	$	44
FS Real Estate Advisor	Advisory Agreement	Administrative Services Expenses (3)	$	2,426	$	2,512	$	1,885

(1)	During the years ended December 31, 2020, 2019 and 2018, $2,403, $476 and $23, respectively, in base management fees were paid to FS Real Estate Advisor. As of December 31, 2020, $869 in base management fees were payable to FS Real Estate Advisor.

(2)	During the years ended December 31, 2020, 2019 and 2018, $903, $176 and $20, respectively, in performance fees were paid to FS Real Estate Advisor. As of December 31, 2020, $316 in performance fees were payable to FS Real Estate Advisor.

(3)

During the years ended December 31, 2020, 2019 and 2018, $2,248, $2,284 and $1,826, respectively, of the accrued administrative services expenses related to the allocation of costs of administrative personnel for services rendered to the Company by FS Real Estate Advisor and Rialto and the remainder related to other reimbursable expenses. These amounts are recorded as general and administrative expenses on the accompanying consolidated statements of operations.

The dealer manager for the Company’s continuous public offering is FS Investment Solutions, LLC, or FS Investment Solutions, which is an affiliate of FS Real Estate Advisor. Under the amended and restated dealer manager agreement dated as of August 17, 2018, or the dealer manager agreement, FS Investment Solutions is entitled to receive upfront selling commissions of up to 3.0%, and upfront dealer manager fees of 0.5% of the transaction price of each Class T share sold in the primary offering, however such amounts may vary at certain participating broker-dealers provided that the sum will not exceed 3.5% of the transaction price (subject to reductions for certain categories of purchasers). FS Investment Solutions is entitled to receive upfront selling commissions of up to 3.5% of the transaction price per Class S share sold in the primary offering (subject to reductions for certain categories of purchasers). The dealer manager anticipates that all of the selling commissions and dealer manager fees will be

re-allowed

to participating broker-dealers, unless a particular broker-dealer declines to accept some portion of the dealer manager fee they are otherwise eligible to receive. Pursuant to the dealer manager agreement, the Company also reimburses FS Investment Solutions or participating broker-dealers for bona fide due diligence expenses, provided that total organization and offering expenses shall not exceed 15% of the gross proceeds in the Company’s public offering.

No selling commissions or dealer manager fees are payable on the sale of Class D, Class M, Class I, Class F or Class Y shares or on shares of any class sold pursuant to the Company’s distribution reinvestment plan.

Subject to the limitations described below, the Company pays FS Investment Solutions stockholder servicing fees for ongoing services rendered to stockholders by participating broker-dealers or by broker-dealers servicing investors’ accounts, referred to as servicing broker-dealers:

•

with respect to the Company’s outstanding Class T shares equal to 0.85% per annum of the aggregate NAV of its outstanding Class T shares, consisting of an advisor stockholder servicing fee of 0.65% per annum and a dealer stockholder servicing fee of 0.20% per annum; however, with respect to Class T shares sold through certain participating broker-dealers, the advisor stockholder servicing fee and the dealer stockholder servicing fee may be other amounts, provided that the sum of such fees will always equal 0.85% per annum of the NAV of such shares;

•

with respect to the Company’s outstanding Class S shares equal to 0.85% per annum of the aggregate NAV of its outstanding Class S shares;

•

with respect to the Company’s outstanding Class D shares equal to 0.3% per annum of the aggregate NAV of its outstanding Class D shares; and

•

with respect to the Company’s outstanding Class M shares equal to 0.3% per annum of the aggregate NAV of its outstanding Class M shares.

The Company does not pay a stockholder servicing fee with respect to its Class I, Class F or Class Y shares. The dealer manager reallows some or all of the stockholder servicing fees to participating broker-dealers, servicing broker-dealers and financial institutions (including bank trust departments) for ongoing stockholder services performed by such broker-dealers, and waives (pays back to the Company) stockholder servicing fees to the extent a broker-dealer or financial institution is not eligible or otherwise declines to receive all or a portion of such fees.

The Company will cease paying stockholder servicing fees with respect to any Class D, Class M, Class S and Class T shares held in a stockholder’s account at the end of the month in which the total underwriting compensation from the upfront selling commissions, dealer manager fees and stockholder servicing fees, as applicable, paid with respect to such account would exceed 1.25%, 7.25%, 8.75% and 8.75%, respectively (or a lower limit for shares sold by certain participating broker-dealers or financial institutions) of the gross proceeds from the sale of shares in such account. These amounts are referred to as the sales charge cap. At the end of such month that the sales charge cap is reached, each Class D, Class M, Class S or Class T share in such account will convert into a number of Class I shares (including any fractional shares) with an equivalent aggregate NAV as such share.

In addition, the Company will cease paying stockholder servicing fees on each Class D share, Class M share, Class S share and Class T share held in a stockholder’s account and each such share will convert to Class I shares on the earlier to occur of the following: (i) a listing of Class I shares on a national securities exchange; (ii) the sale or other disposition of all or substantially all of the Company’s assets or the Company’s merger or consolidation with or into another entity in a transaction in which holders of Class D, Class M, Class S or Class T shares receive cash and/or shares of stock that are listed on a national securities exchange; or (iii) the date following the completion of the Company’s public offering on which, in the aggregate, underwriting compensation from all sources in connection with the Company’s public offering, including selling commissions, dealer manager fees, stockholder servicing fees and other underwriting compensation, is equal to 10% of the gross proceeds from its primary offering.

The Company accrues future stockholder servicing fees in an amount equal to its best estimate of fees payable to FS Investment Solutions at the time such shares are sold. As of December 31, 2020 and 2019, the Company accrued $15,481 and $6,290, respectively, of stockholder servicing fees payable to FS Investment Solutions. FS Investment Solutions has entered into agreements with selected dealers distributing the Company’s shares in the public offering, which provide, among other things, for the

re-allowance

of the full amount of the selling commissions and dealer manager fee and all or a portion of the stockholder servicing fees received by FS Investment Solutions to such selected dealers.

FS Investment Solutions also serves or served as the placement agent for the Company’s private offerings of Class F and Class Y shares pursuant to placement agreements. FS Investment Solutions does not receive any compensation pursuant to these agreements.

Expense Limitation

The Company has entered into an amended and restated expense limitation agreement with FS Real Estate Advisor and Rialto, or the expense limitation agreement, pursuant to which FS Real Estate Advisor and Rialto have agreed to waive reimbursement of or pay, on a quarterly basis, the Company’s annualized ordinary operating expenses for such quarter to the extent such expenses exceed 1.5% per annum of its average net assets attributable to each of its classes of common stock. The Company will repay FS Real Estate Advisor or Rialto on a quarterly basis any ordinary operating expenses previously waived or paid, but only if the reimbursement would not cause the then-current expense limitation, if any, to be exceeded. In addition, the reimbursement of expenses will be made only if payable not more than three years from the end of the fiscal quarter in which the expenses were paid or waived.

FS Real Estate Advisor and Rialto each agreed to waive the recoupment of any amounts that may be subject to conditional reimbursement during the quarterly period ended March 31, 2020. To the extent that the conditions to recoupment are satisfied in a future quarter (prior to the expiration of the three-year period for reimbursement set forth in the Expense Limitation Agreement), such expenses may be subject to conditional recoupment in accordance with the terms of the Expense Limitation Agreement.

During the period from September 13, 2017 (Commencement of Operations) to December 31, 2020, the Company accrued $5,783 for reimbursement of expenses that FS Real Estate Advisor and Rialto paid or waived, including $1,023 in reimbursements for the year ended December 31, 2020. During the period from September 13, 2017 (Commencement of Operations) to December 31, 2020, the Company received $5,339 in cash reimbursements from FS Real Estate Advisor. As of December 31, 2020, the Company had $444 of reimbursements due from FS Real Estate Advisor and Rialto.

The following table reflects the amounts paid or waived by FS Real Estate Advisor and Rialto under the expense limitation agreement and the expiration date for future possible reimbursements by the Company:


For the Three Months Ended	Amount of Expense Reimbursement		Recoupable Amount		Recoupment eligibility expiration
December 31, 2020	$	444	$	444		December 31, 2023
September 30, 2020		397		397		September 30, 2023
June 30, 2020		182		182		June 30, 2023
March 31, 2020		—		—		N/A
December 31, 2019		500		500		December 31, 2022
September 30, 2019		491		491		September 30, 2022
June 30, 2019		420		420		June 30, 2022
March 31, 2019		537		537		March 31, 2022
December 31, 2018		709		709		December 31, 2021
September 30, 2018		645		645		September 30, 2021
June 30, 2018		561		561		June 30, 2021
March 31, 2018		356		356		March 31, 2021
December 31, 2017		377		—		Expired December 31, 2020
September 30, 2017		164		—		Expired September 30, 2020

	$	5,783	$	5,242

Capital Contributions and Commitments

In December 2016, pursuant to a private placement, Michael C. Forman and David J. Adelman, principals of FS Investments, contributed an aggregate of $200 to purchase 8,000 Class F shares at the price of $25.00 per share. These individuals will not tender these shares of common stock for repurchase as long as FS Real Estate Advisor remains the Company’s adviser. FS Investments is controlled by Mr. Forman, the Company’s president and chief executive officer, and Mr. Adelman.

Each of FS Investments and Rannel Investments, LLC (f/k/a Rialto Investments, LLC) (“RI”), a former affiliate of Rialto, the Company’s

sub-adviser,

previously committed to purchase, or to cause its designees to purchase, the Company’s Class F shares and to maintain a minimum investment of $10,000 in Class F shares until such date as the Company reaches $750,000 in net assets (the “Minimum Investment Amount”). In addition, FS Investments and the Company’s board of directors had agreed that FS Investments would commit to purchase up to approximately $21,400 in Class F shares if required to fund additional investments. This commitment expired on November 1, 2020.

Following the sale of Rialto in November 2018, RI remained a wholly-owned subsidiary of Lennar Corporation and no longer has any affiliation with Rialto or the Company other than its ownership of the Company’s Class F shares. On October 25, 2019, the Company’s board of directors approved the termination of RI’s remaining commitment to purchase Class F shares and agreed that the Company may repurchase up to approximately $17,000 of RI’s Class F Shares, in its discretion and in one or more repurchases, outside the Company’s share repurchase plan at the most recently published NAV per Class F share at the time of any such repurchase. As of December 31, 2020, all of these shares were repurchased by the Company outside of the share repurchase plan at an average price of $24.95 per Class F share.

On February 14, 2020, the Company repurchased, outside of the share repurchase plan, approximately $14,700 of its Class F shares from MCFDA SCV LLC, a special purpose vehicle jointly owned by Michael C. Forman and David J. Adelman, the principals of FS Investments, at the then-current transaction price of $24.95 per share. As of March 22, 2021, FS Investments (including its affiliates and designees) owned approximately $21,800 in Class F shares.

Stockholder's Equity

12 Months Ended

Dec. 31, 2020

Equity [Abstract]

Stockholders' Equity

Note 7. Stockholder’s Equity

Below is a summary of transactions with respect to shares of the Company’s common stock during the years ended December 31, 2020, 2019 and 2018:


	Shares
	Class F			Class Y			Class T			Class S			Class D			Class M			Class I			Total
Balance as of December 31, 2017		988,801			191,114			—			—			—			—			—			1,179,915
Issuance of common stock		1,387,498			—			123,923			3,752			60,774			421,104			127,882			2,124,933
Reinvestment of distributions		95,565			1,899			658			21			160			867			644			99,814
Redemptions of common stock		—			—			—			—			—			(3,979	)		—			(3,979	)

Balance as of December 31, 2018		2,471,864			193,013			124,581			3,773			60,934			417,992			128,526			3,400,683
Issuance of common stock		—			—			842,857			1,347,145			258,386			946,244			1,091,101			4,485,733
Reinvestment of distributions		86,990			—			15,436			1,069			3,282			9,624			11,978			128,379
Redemptions of common stock		(1,083,699	)		(51,897	)		(1,038	)		(400	)		—			(16,042	)		(1,245	)		(1,154,321	)

Balance as of December 31, 2019		1,475,155			141,116			981,836			1,351,587			322,602			1,357,818			1,230,360			6,860,474
Issuance of common stock		—			—			281,353			4,656,388			252,499			823,387			1,341,270			7,354,897
Reinvestment of distributions		29,036			—			35,289			74,149			10,674			34,439			32,774			216,361
Redemptions of common stock		(591,722	)		(4,000	)		(48,685	)		(288,049	)		(19,762	)		(230,322	)		(487,739	)		(1,670,279	)
Transfers in or out		—			—			(4,135	)		(15,435	)		(19,715	)		(14,283	)		54,863			1,295

Balance as of December 31, 2020		912,469			137,116			1,245,658			5,778,640			546,298			1,971,039			2,171,528			12,762,748


	Amount
	Class F			Class Y			Class T			Class S			Class D			Class M			Class I			Total
Balance as of December 31, 2017	$	24,741		$	4,785		$	—		$	—		$	—		$	—		$	—		$	29,526
Issuance of common stock		34,175			—			3,104			94			1,522			10,581			3,151			52,627
Reinvestment of distributions		2,353			47			16			1			4			22			16			2,459
Redemptions of common stock		—			—			—			—			—			(100	)		—			(100	)
Accrued stockholder servicing fees (1)		—			—			(133	)		(4	)		(19	)		(767	)		—			(923	)

Balance as of December 31, 2018		61,269			4,832			2,987			91			1,507			9,736			3,167			83,589
Issuance of common stock		—			—			21,192			34,180			6,506			23,880			26,935			112,693
Reinvestment of distributions		2,160			—			389			27			83			241			296			3,196
Redemptions of common stock		(27,010	)		(1,284	)		(26	)		(10	)		—			(405	)		(31	)		(28,766	)
Accrued stockholder servicing fees (1)		—			—			(926	)		(2,859	)		(81	)		(1,695	)		—			(5,561	)

Balance as of December 31, 2019		36,419			3,548			23,616			31,429			8,015			31,757			30,367			165,151
Issuance of common stock		—			—			7,077			118,049			6,352			20,767			33,048			185,293
Reinvestment of distributions		725			—			886			1,877			268			868			807			5,431
Redemptions of common stock		(14,766	)		(99	)		(1,224	)		(7,273	)		(496	)		(5,797	)		(11,977	)		(41,632	)
Transfers in or out		—			—			(104	)		(391	)		(496	)		(361	)		1,352			—
Accrued stockholder servicing fees (1)		—			—			(280	)		(8,986	)		(70	)		(1,080	)		—			(10,416	)

Balance as of December 31, 2020	$	22,378		$	3,449		$	29,971		$	134,705		$	13,573		$	46,154		$	53,597		$	303,827

(1)

Stockholder servicing fees only apply to Class T, Class S, Class D and Class M shares. Under GAAP, the Company accrues future stockholder servicing fees in an amount equal to its best estimate of fees payable to FS Investment Solutions at the time such shares are sold. For purposes of NAV, the Company recognizes the stockholder servicing fee as a reduction of NAV on a monthly basis. As a result, the estimated liability for the future stockholder servicing fees, which are accrued at the time each share is sold, will have no effect on the NAV of any class.

Share Repurchase Plan

The Company has adopted an amended and restated share repurchase plan, or share repurchase plan, whereby on a monthly basis, stockholders may request that the Company repurchase all or any portion of their shares. Prior to September 2019, Class F shares and Class Y shares were not eligible to participate in the Company’s share repurchase plan. The repurchase of shares is limited to no more than 2% of the Company’s aggregate NAV per month of all classes of shares then participating in the share repurchase plan and no more than 5% of the Company’s aggregate NAV per calendar quarter of all classes of shares then participating in the share repurchase plan, which means that in any

12-month

period, the Company limits repurchases to approximately 20% of the total NAV of all classes of shares then participating in the share repurchase plan. The Company’s board of directors may modify, suspend or terminate the share repurchase plan if it deems such action to be in the Company’s best interest and the best interest of its stockholders. During the years ended December 31, 2020, 2019 and 2018, the Company repurchased 1,670,279, 1,154,321 and 3,979, respectively, of shares of common stock under its share repurchase plan presenting a total of $41,632, $28,766 and $100, respectively. The remaining redemption requests received during the year ended December 31, 2020, totaling 179,318 shares, went unfulfilled as a result of redemption requests hitting the monthly limitation of 2% of the Company’s aggregate NAV in March 2020, April 2020 and May 2020. In June 2020, the Company received repurchase requests in excess of its ordinary quarterly repurchase limit. However, as a result of the impact of the

COVID-19

pandemic on repurchase requests, the Company’s board of directors authorized management of the Company to apply the amount by which it was below the quarterly repurchase limit for the first calendar quarter of 2020 to satisfy repurchase requests for June 2020 in excess of the quarterly limit. As a result all valid repurchase requests for the June 2020 repurchase period were satisfied. The Company had no unfulfilled repurchase requests during the years ended December 31, 2019 or 2018.

Distribution Reinvestment Plan

Pursuant to the Company’s distribution reinvestment plan, holders of shares of any class of the Company’s common stock may elect to have their cash distributions reinvested in additional shares of the Company’s common stock. The purchase price for shares pursuant to the distribution reinvestment plan will be equal to the transaction price for such shares at the time the distribution is payable.

Preferred Stock

During the year ended December 31, 2020, a subsidiary of the Company issued 125 shares of Series A preferred stock for proceeds of $125.

Distributions

The Company generally intends to distribute substantially all of its taxable income, which does not necessarily equal net income as calculated in accordance with GAAP, to its stockholders each year to comply with the REIT provisions of the Code. Dividends are paid first to the holders of the Company’s Series A preferred stock at the rate of 12.0% per annum plus all accumulated and unpaid dividends thereon, and then to the holders of the Company’s common stock. All distributions will be made at the discretion of the Company’s board of directors and will depend upon its taxable income, financial condition, maintenance of REIT status, applicable law, and other factors that the Company’s board of directors deems relevant.

The following table reflects the cash distributions per share that the Company paid on its common stock during the year ended December 31, 2020:


Record Date	Class F		Class Y		Class T		Class S		Class D		Class M		Class I
January 30, 2020	$	0.1610	$	0.1610	$	0.1173	$	0.1173	$	0.1288	$	0.1288	$	0.1350
February 27, 2020		0.1610		0.1610		0.1173		0.1173		0.1288		0.1288		0.1350
March 30, 2020		0.1610		0.1610		0.1173		0.1173		0.1288		0.1288		0.1350
April 29, 2020		0.1610		0.1610		0.1173		0.1173		0.1288		0.1288		0.1350
May 28, 2020		0.1610		0.1610		0.1173		0.1173		0.1288		0.1288		0.1350
June 29, 2020		0.1610		0.1610		0.1173		0.1173		0.1288		0.1288		0.1350
July 30, 2020		0.1610		0.1610		0.1173		0.1173		0.1288		0.1288		0.1350
August 28, 2020		0.1710		0.1710		0.1273		0.1273		0.1388		0.1388		0.1450
September 29, 2020		0.1710		0.1710		0.1273		0.1273		0.1388		0.1388		0.1450
October 31, 2020		0.1710		0.1710		0.1273		0.1273		0.1388		0.1388		0.1450
November 30, 2020		0.1710		0.1710		0.1273		0.1273		0.1388		0.1388		0.1450
December 31, 2020		0.1710		0.1710		0.1273		0.1273		0.1388		0.1388		0.1450

Total	$	1.9820	$	1.9820	$	1.4576	$	1.4576	$	1.5956	$	1.5956	$	1.6700

The following table reflects the amount of cash distributions that the Company paid on its common stock during the years ended December 31, 2020, 2019 and 2018:


	Year Ended December 31,
	2020		2019		2018
Distributions:
Paid or payable in cash	$	11,230	$	5,156	$	1,488
Reinvested in shares		5,431		3,196		2,459

Total distributions	$	16,661	$	8,352	$	3,947

Source of distributions:
Cash flows from operating activities	$	16,661	$	8,352	$	3,947
Offering proceeds		—		—		—

Total sources of distributions	$	16,661	$	8,352	$	3,947

Net cash provided by operating activities (1)	$	21,777	$	11,071	$	5,198

(1)	Cash flows from operating activities are supported by expense support payments from FS Real Estate Advisor and Rialto pursuant to the Company’s expense limitation agreement. See Note 6 for additional information regarding the Company’s expense limitation agreement.

The Company currently declares and pays regular cash distributions on a monthly basis. The Company’s board of directors previously authorized regular monthly cash distributions for January 2021 through March 2021 for each class of its outstanding common stock in the net distribution amounts per share set forth below:


Class F		Class Y		Class T		Class S		Class D		Class M		Class I
$	0.1710	$	0.1710	$	0.1273	$	0.1273	$	0.1388	$	0.1388	$	0.1450

The distributions for each class of outstanding common stock have been or will be paid monthly to stockholders of record as of the monthly record dates previously determined by the Company’s board of directors. These distributions have been or will be paid in cash or reinvested in shares of the Company’s common stock for stockholders participating in the Company’s distribution reinvestment plan.

For federal income tax purposes, distributions to stockholders are characterized as either ordinary income, capital gain or

non-taxable

return of capital. Distributions that exceed the Company’s current and accumulated tax earnings and profits constitute a return of capital and reduce the stockholders’ basis in the common shares. To the extent that a distribution exceeds both current and accumulated earnings and profits and the stockholders’ basis in the common shares, the distributions will generally be treated as a gain from the sale or exchange of such stockholders’ common shares. Under the new tax laws effective January 1, 2018, all distributions (other than distributions designated as capital gain distributions and distributions traceable to distributions from a taxable REIT subsidiary) which are received by a pass-through entity or an individual, are eligible for a 20% deduction from gross income. This eligibility for a 20% deduction will expire as of 2025. At the beginning of each year, the Company notifies its stockholders of the taxability of the distributions paid during the preceding year. In any given year, the overall taxability of distributions could be higher or lower than the preceding year.

The following table shows the character of distributions the Company paid on a percentage basis during the years ended December 31, 2020, 2019 and 2018:


	For the Year Ended December 31,
	2020			2019			2018
Ordinary income		100	%		100	%		100	%
Non-taxable return of capital		—			—			—
Capital gain		—			—			—

Total		100	%		100	%		100	%

Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Note 8. Fair Value of Financial Instruments

The following table presents the Company’s financial instruments carried at fair value in the consolidated balance sheets by its level in the fair value hierarchy:


	December 31, 2020								December 31, 2019
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Mortgage-backed securities available-for-sale	$	—		—	$	—		—	$	6,651		—	$	6,651		—

As discussed in Note 2, GAAP requires disclosure of fair value information about financial instruments, whether or not recognized in the statement of financial position, for which it is practicable to estimate that value. The following table details the carrying amount, face amount, and fair value of the financial instruments described in Note 2:


	December 31, 2020						December 31, 2019
	Book Value		Face Amount		Fair Value		Book Value		Face Amount		Fair Value
Financial Assets
Cash, cash equivalents and restricted cash	$	17,874	$	17,874	$	17,874	$	78,155	$	78,155	$	78,155
Loans receivable (1)	$	700,149	$	699,250	$	697,533	$	406,645	$	405,985	$	407,283
Mortgage-backed securities held-to-maturity	$	37,314	$	50,300	$	37,314		—		—		—
Financial Liabilities
Repurchase obligations (2)	$	125,266	$	125,460	$	125,460		—		—		—
Collateralized loan obligation (2)	$	323,109	$	327,665	$	327,665	$	322,182	$	327,665	$	327,665

(1)	Book value of loans receivable represents the face amount, net of unamortized loan fees and costs and accrual of exit fees, as applicable.

(2)	Book value represents the face amount, net of deferred financing costs.

Estimates of fair value for cash, cash equivalents and restricted cash are measured using observable, quoted market prices, or Level 1 inputs. Estimates of fair value for loans receivable, mortgage-backed securities

held-to-maturity,

repurchase obligations and the collateralized loan obligation are measured using unobservable inputs, or Level 3 inputs.

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Variable Interest Entities

12 Months Ended

Dec. 31, 2020

Variable Interest Entities

Note 9. Variable Interest Entities

Consolidated Variable Interest Entities

The Company has financed a portion of its loans through the CLO, which is considered a VIE. The Company has a controlling financial interest in the CLO and, therefore, consolidates it on its balance sheet because the Company has both (i) the power to direct activities of the CLO that most significantly affect the CLO’s economic performance and (ii) the obligation to absorb losses and the right to receive benefits of the CLO that could potentially be significant to the CLO.

The following table details the assets and liabilities of the Company’s consolidated CLO:


	December 31, 2020		December 31, 2019
Assets:
Restricted cash	$	4	$	35,706
Loans receivable		411,455		385,408
Interest receivable		2,470		1,100
Other assets		15,842		5,241

Total assets	$	429,771	$	427,455

Liabilities
Collateralized loan obligation (net of deferred financing costs of $4,556 and $5,483, respectively)	$	323,109	$	322,182
Interest payable		227		764

Total liabilities	$	323,336	$	322,946

Assets held by the VIE are restricted and can be used only to settle obligations of the VIE. The liabilities are

non-recourse

to the Company and can only be satisfied from the assets of the VIE.

Non-Consolidated Variable Interest Entities

In August 2020, the Company invested $37,005 in a subordinated position of a CMBS trust which is considered a VIE. The Company is not the primary beneficiary of the VIE because it does not have the power to direct the activities that most significantly affect the VIE’s economic performance, nor does it provide guarantees or recourse to the VIE other than standard representations and warranties and, therefore, does not consolidate the VIE on its balance sheet. The Company has classified its investment in the CMBS as a

held-to-maturity

debt security that is included on the Company’s consolidated balance sheets and is part of the Company’s ongoing other-than-temporary impairment review. The Company’s maximum exposure to loss of the security is limited to its book value of $37,314 as of December 31, 2020.

The Company is not obligated to provide, nor has it provided financial support to these consolidated and

non-consolidated

VIEs.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 10. Commitments and Contingencies

The Company enters into contracts that contain a variety of indemnification provisions. The Company’s maximum exposure under these arrangements is unknown; however, the Company has not had prior claims or losses pursuant to these contracts. Management of FS Real Estate Advisor has reviewed the Company’s existing contracts and expects the risk of loss to the Company to be remote.

The Company is not currently subject to any material legal proceedings and, to the Company’s knowledge, no material legal proceedings are threatened against the Company. From time to time, the Company may be party to certain legal proceedings in the ordinary course of business. While the outcome of any legal proceedings cannot be predicted with certainty, the Company does not expect that any such proceedings will have a material effect on its financial condition or results of operations.

See Note 6 for a discussion of the Company’s commitments to FS Real Estate Advisor and its affiliates (including FS Investments) for the reimbursement of organization and offering costs funded by FS Investments and for the reimbursement of amounts paid or waived by FS Real Estate Advisor and Rialto under the expense limitation agreement.

Summary of Quarterly Results

12 Months Ended

Dec. 31, 2020

Quarterly Financial Information Disclosure [Abstract]

Summary of Quarterly Results

Note 11. Summary of Quarterly Results

The following are the quarterly results of operations for the years ended December 31, 2020 and 2019, respectively. The following information reflects all normal recurring adjustments necessary for a fair presentation of the information for the periods presented. The operating results for any quarter are not necessarily indicative of results for any future period.


	Quarter Ended
	December 31, 2020		September 30, 2020			June 30, 2020		March 31, 2020
Net interest income	$	7,711	$	7,537		$	6,606	$	4,921
Net other expenses		2,608		2,284			2,156		1,313
Other income (loss)		—		(556	)		—		—

Net income	$	5,103	$	4,697		$	4,450	$	3,608

Per share information-basic and diluted
Net income per share of common stock	$	0.42	$	0.44		$	0.44	$	0.40

Weighted average common stock outstanding		12,112,747		10,629,214			10,155,719		8,977,762


	Quarter Ended
	December 31, 2019		September 30, 2019		June 30, 2019		March 31, 2019
Net interest income	$	3,633	$	3,277	$	2,617	$	2,410
Net other expenses		974		769		593		487

Net income	$	2,659	$	2,508	$	2,024	$	1,923

Per share information-basic and diluted
Net income per share of common stock	$	0.43	$	0.47	$	0.45	$	0.51

Weighted average common stock outstanding		6,166,972		5,355,898		4,538,627		3,789,218

The sum of quarterly per share amounts may not equal per share amounts reported for the years ended December 31, 2020 and 2019. This is due to changes in the number of weighted-average shares outstanding and the effects of rounding for each period.

Subsequent Events

12 Months Ended

Dec. 31, 2020

Subsequent Events [Abstract]

Subsequent Events

Note 12. Subsequent Events

The following is a discussion of material events that have occurred subsequent to December 31, 2020 through the issuance of the consolidated financial statements.

COVID-19

Update

The Company continues to closely monitor the impact of the coronavirus pandemic on all aspects of its investments and operations, including how it is impacting its borrowers and business partners. As of February 28, 2021, the Company had not recorded any impairments or

non-accruals

in its loan portfolio and 97% of its loan portfolio was current as of such date. More broadly, the Company’s lending strategy has focused on originating short-term (2–3 years), floating-rate, senior loans, which has helped preserve investor capital while providing a natural turnover of the portfolio. The short-term nature of the Company’s typical loans allows it to regularly adjust the portfolio to current market conditions, including those resulting from the

COVID-19

pandemic. The extent to which the coronavirus will continue to impact the Company’s investments and operations will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration of the outbreak, the severity of the coronavirus on the population, the impact of previously-announced and potential future government stimulus programs, the distribution and effectiveness of vaccines, and the actions taken by government agencies to contain the coronavirus and eventually fully reopen the economy.

Status of Offerings

As of March 22, 2021, the Company has issued 18,135,681 shares of common stock (consisting of 2,593,101 shares of Class F common stock, 193,013 shares of Class Y common stock, 1,351,155 shares of Class T common stock, 7,528,511 shares of Class S common stock, 615,664 shares of Class D common stock, 2,459,772 shares of Class M common stock and 3,394,465 shares of Class I common stock), including shares issued pursuant to its distribution reinvestment plan, for gross proceeds of $455,129.

Share Repurchases

In connection with the Company’s January 2021 and February 2021 repurchase periods, the Company repurchased an aggregate of 100,356 shares of common stock representing a total of $2,491.

Business Update

During the period from January 1, 2021 through March 22, 2021, we closed on seven senior floating-rate mortgage loans of which $127,883 was funded at closing.

BB-1

Facility

On February 22, 2021, the Company’s indirect wholly owned, special-purpose financing subsidiary, FS CREIT Finance

BB-1

LLC, or

BB-1,

entered into a Master Repurchase Agreement, the

BB-1

Repurchase Agreement, and together with the related transaction documents, the

BB-1

Facility, as seller, with Barclays Bank PLC, or Barclays, as purchaser, to finance the acquisition and origination of whole, performing senior commercial or multifamily floating rate mortgage loans secured by first liens on office, retail, industrial, hospitality, multifamily, self-storage and manufactured housing property (or a combination of the foregoing, including associated parking structures). The initial maximum amount of financing available under the

BB-1

Facility is $175,000.

BB-1

may, with the consent of Barclays, elect to increase the maximum amount of financing available to $250,000. Each transaction under the

BB-1

Facility will have its own specific terms, such as identification of the assets subject to the transaction, sale price, repurchase price and rate.

The initial availability period of the

BB-1

Facility (during which financing under the

BB-1

Facility may be used for acquisition and origination of new assets) is three years.

BB-1

may extend the availability period for a

one-year

term extension, so long as certain conditions are met. After the end of the availability period,

BB-1

may exercise an option to commence a

one-year

amortization period up to two times, so long as certain conditions are met. During the amortization period, certain of the terms of the

BB-1

Facility will be modified, including a requirement to pay down a certain amount of the outstanding purchase price of each asset financed under the

BB-1

Facility.

In connection with the

BB-1

Repurchase Agreement, the Company entered into a Guaranty, the

BB-1

Guaranty, pursuant to which the Company guarantees 25% of

BB-1’s

obligations under the

BB-1

Repurchase Agreement, subject to limitations specified therein. The

BB-1

Guarantee may become full recourse to the Company upon the occurrence of certain events, including willful bad acts by the Company or

BB-1.

The

BB-1

Repurchase Agreement and

BB-1

Guaranty contain representations, warranties, covenants, events of default and indemnities that are customary for agreements of their type. In addition, the Company is required (i) to maintain its adjusted tangible net worth at an amount not less than the greater of (x) 75% of the net cash proceeds of any equity issuance by the Company plus 75% of the net available capital commitments callable by the Company, minus 75% of the amounts expended for equity redemptions or repurchases by the Company and (y) 75% of the then-current maximum facility amount under the Master Repurchase and Securities Contract, dated August 30, 2017, as amended, between FS CREIT Finance

WF-1

LLC, an indirect wholly owned special-purpose financing subsidiary of the Company, as seller, and Wells Fargo, National Association, as buyer; (ii) to maintain an EBITDA to interest expense ratio not less than 1.50 to 1.00; (iii) to maintain a total indebtedness to tangible net worth ratio of less than 3.00 to 1.00; and (iv) to maintain minimum liquidity plus net available capital commitments, if any, at not less than 7.5% of the amount outstanding under the

BB-1

Facility.

Schedule IV - Mortgage Loans on Real Estate

12 Months Ended

Dec. 31, 2020

SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]

Schedule IV - Mortgage Loans on Real Estate

FS Credit Real Estate Income Trust, Inc.

Schedule IV - Mortgage Loans on Real Estate

As of December 31, 2019

(in thousands)


Loan Type	Description	Location	Interest Payment Rates			Maximum Maturity Date (1)		Periodic Payment Terms (2)	Prior Liens		Face Amount of Loans		Carrying Amount of Loans
Senior loan (3)(4)	Multifamily	New York, NY		L+3.75	%		1/9/2026	I/O	$	—	$	25,831	$	25,802
Senior loan (3)(4)	Industrial	Various, SC		L+3.15	%		3/9/2025	I/O		—		55,370		55,384
Senior loan (3)(4)	Industrial	Hawthorne, CA		L+4.15	%		1/9/2026	I/O		—		42,240		42,221
Senior loan (3)(4)	Mixed Use	New York, NY		L+3.75	%		4/9/2024	I/O		—		38,000		37,995
Senior loan (3)(4)	Office	Memphis, TN		L+4.25	%		9/9/2022	I/O		—		33,663		33,749
Senior loan (3)(4)	Multifamily	San Antonio, TX		L+4.00	%		3/9/2024	I/O		—		31,000		31,036
Senior loan (3)(4)	Office	Jupiter, FL		L+3.00	%		3/9/2025	I/O		—		24,625		24,617
Senior loan (3)(4)	Office	New York, NY		L+4.00	%		5/9/2021	I/O		—		30,000		29,999
Senior loan (3)(4)	Hospitality	Davis, CA		L+5.35	%		7/9/2024	I/O		—		28,500		28,565
Senior loan (3)(4)	Office	Rockville, MD		L+4.50	%		1/9/2026	I/O		—		22,675		22,665
Senior loan (3)(4)	Mixed Use	Philadelphia, PA		L+5.00	%		8/15/2024	I/O		—		24,250		24,354
Senior loan (3)(4)	Hospitality	Gaithersburg, MD		L+5.25	%		8/9/2023	I/O		—		21,972		22,059
Senior loan (4)	Office	Los Angeles, CA		L+5.25	%		1/9/2026	I/O		—		11,900		11,880
Senior loan (4)	Office	Katy, TX		L+4.00	%		12/9/2024	I/O		—		18,200		18,249
Senior loan (4)	Office	Austin, TX		L+4.00	%		4/9/2023	I/O		—		18,962		19,067
Senior loan (4)	Multifamily	Jersey City, NJ		L+3.00	%		12/19/2023	I/O		—		20,500		20,489
Senior loan (4)	Self Storage	Various		L+3.20	%		3/9/2025	I/O		—		19,700		19,699
Senior loan (4)	Office	Landover, MD		L+3.85	%		12/9/2022	I/O		—		14,212		14,257
Mezzanine loan (4)	Industrial	Various, SC		10.00	%		3/1/2030	I/O		—		18,102		18,102
Senior loan (4)	Mixed Use	Los Angeles, CA		L+3.50	%		3/9/2025	I/O		—		14,400		14,412
Senior loan (4)	Multifamily	Glendale, AZ		L+4.00	%		1/9/2026	I/O		—		15,352		15,328
Senior loan (4)	Mixed Use	Oakland, CA		L+4.50	%		11/9/2024	I/O		—		14,745		14,795
Senior loan (4)	Industrial	South El Monte, CA		L+3.35	%		2/9/2025	I/O		—		15,633		15,629
Senior loan (4)	Multifamily	Jacksonville, FL		L+4.25	%		7/9/2023	I/O		—		10,246		10,298
Mezzanine loan (4)	Multifamily	New York, NY		L+7.50	%		12/5/2026	I/O		—		15,000		15,000
Senior loan (4)	Industrial	Vista, CA		L+4.00	%		12/9/2025	I/O		—		13,140		13,130
Senior loan (4)	Industrial	Bordentown, NJ		L+3.95	%		3/9/2024	I/O		—		14,300		14,370
Senior loan (4)	Multifamily	Las Vegas, NV		L+4.00	%		3/9/2023	I/O		—		12,633		12,695
Senior loan (4)	Retail	Holly Springs, GA		L+4.00	%		11/9/2024	I/O		—		11,749		11,768
Senior loan (4)	Hospitality	Las Vegas, NV		L+5.00	%		3/7/2022	I/O		—		12,050		12,135
Senior loan (4)	Retail	Miami, FL		L+4.00	%		6/9/2023	I/O		—		12,000		12,049
Senior loan (4)	Industrial	San Diego, CA		L+4.00	%		12/9/2025	I/O		—		10,050		10,040
Senior loan (4)	Retail	Miami, FL		L+4.50	%		6/9/2023	I/O		—		11,000		11,045
Senior loan (4)	Retail	Los Angeles, CA		L+3.50	%		3/9/2025	I/O		—		10,500		10,488
Senior loan (4)	Retail	Miami, FL		L+4.25	%		6/9/2023	I/O		—		6,750		6,778

									$	—	$	699,250	$	700,149

(1)	Maximum maturity assumes all extension options are exercised by the borrower.

(2)	I/O = interest only.

(3)	Loan is in excess of 3% of the carrying amount of total loans.

(4)	Loan is not delinquent with respect to principal or interest.

The following table reconciles mortgage loans on real estate for the years ended December 31, 2020 and 2019:


	For the Year Ended December 31,
	2020			2019
Balance at beginning of period	$	406,645		$	239,207
Additions during period:
Loan fundings		358,384			199,128
Amortization of deferred fees and expenses on loans		876			689
Deductions during period:
Collections of principal		(65,289	)		(32,249	)
Exit and extension fees received on loans receivable		(467	)		(130	)

Balance at end of period	$	700,149		$	406,645

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation:

Use of Estimates

Use of Estimates:

Principles of Consolidation

Principles of Consolidation:

Cash, Cash Equivalents and Restricted Cash

Cash, Cash Equivalents and Restricted Cash:


	December 31,
	2020		2019
Cash and cash equivalents	$	15,707	$	40,214
Restricted cash		2,167		37,941

Total cash, cash equivalents and restricted cash	$	17,874	$	78,155

Loans Receivable and Provision for Loan Losses

Loans Receivable and Provision for Loan Losses:

In connection with this review, FS Real Estate Advisor and Rialto assess the risk factors of each loan and assign a risk rating based on a variety of factors, including, without limitation,

loan-to-value

5-point

scale, the Company’s loans are rated “1” through “5”, from less risk to greater risk, which ratings are defined as follows:


Loan Risk Rating		Summary Description
1		Very Low Risk
2		Low Risk
3		Medium Risk
4		High Risk/Potential for Loss: A loan that has a risk of realizing a principal loss
5		Impaired/Loss Likely: A loan that has a very high risk of realizing a principal loss or has otherwise incurred a principal loss

Mortgage backed securities

Mortgage-backed Securities:

The Company designates its mortgage-backed securities as

held-to-maturity

available-for-sale

depending on the investment strategy and ability to hold such securities to maturity. Mortgage-backed securities are classified as

held-to-maturity

when the Company intends and has the ability to hold until maturity.

Held-to-maturity

available-for

sale and are reported at fair value on the consolidated balance sheets with changes in fair value recorded in other comprehensive income.

Fair Value of Financial Instruments

Fair Value of Financial Instruments:

Accounting Standards Codification Topic 820,

Fair Value Measurements and Disclosures

Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination, as follows:


Level 1:		Generally includes only unadjusted quoted prices that are available in active markets for identical financial instruments as of the reporting date.

Level 2:		Pricing inputs include quoted prices in active markets for similar instruments, quoted prices in less active or inactive markets for identical or similar instruments where multiple price quotes can be obtained, and other observable inputs, such as interest rates, yield curves, credit risks, and default rates.

Level 3:		Pricing inputs are unobservable for the financial instruments and include situations where there is little, if any, market activity for the financial instrument. These inputs require significant judgment or estimation by management or third parties when determining fair value and generally represent anything that does not meet the criteria of Levels 1 and 2.

The estimated value of each asset reported at fair value using Level 3 inputs is determined by an internal committee composed of members of senior management of FS Real Estate Advisor.

Certain of the Company’s other assets are reported at fair value either (i) on a recurring basis, as of each

quarter-end,

non-financial

instruments.

The following methods and assumptions are used to estimate the fair value of each class of financial instruments, for which it is practicable to estimate that value:

•

Cash and cash equivalents: The carrying amount of cash on deposit and in money market funds approximates fair value.

•

Restricted cash: The carrying amount of restricted cash approximates fair value.

•

Mortgage-backed securities

available-for-sale:

The fair values for these investments were based on indicative deal quotes.

•

Mortgage-backed securities

held-to-maturity:

•

Deferred Financing Costs

Deferred Financing Costs:

Revenue Recognition

Revenue Recognition:

ex-dividend

Organization Costs

Organization Costs:

Offering Costs

Offering Costs:

paid-in

Income Taxes

Income Taxes:

Uncertainty in Income Taxes

Stockholder Servicing Fees

Stockholder Servicing Fees:

The Company follows the guidance in Accounting Standards Codification Topic 405,

Liabilities

paid-in

Recent Accounting Pronouncements

Recent Accounting Pronouncements:

In June 2016, the FASB, issued ASU

2016-13,

Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326)

, or

ASU 2016-13.

ASU

2016-13

significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. ASU

2016-13

will replace the “incurred loss” model under existing guidance with an “expected loss” model for instruments measured at amortized cost and require entities to record allowances for

available-for-sale

2019-10,

Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instrument (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) Effective Dates,

which deferred the effective date of ASU

2016-13

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Reconciliation of Cash, Cash Equivalents and Restricted Cash


	December 31,
	2020		2019
Cash and cash equivalents	$	15,707	$	40,214
Restricted cash		2,167		37,941

Total cash, cash equivalents and restricted cash	$	17,874	$	78,155

Loans Receivable (Tables)

12 Months Ended

Dec. 31, 2020

Receivables [Abstract]

Summary of Details Overall Statistics for Loans Receivable Portfolio

The following table details overall statistics for the Company’s loans receivable portfolio as of December 31, 2020 and 2019:


	December 31,
	2020			2019
Number of loans		35			24
Principal balance	$	699,250		$	405,985
Net book value	$	700,149		$	406,645
Unfunded loan commitments (1)	$	100,389		$	44,226
Weighted-average cash coupon (2)		L+4.25	%		L+4.22	%
Weighted-average all-in yield (2)		L+4.35	%		L+4.39	%
Weighted-average maximum maturity (years) (3)		3.7			3.6

(1)	The Company may be required to provide funding when requested by the borrower in accordance with the terms of the underlying agreements.

(2)	The Company’s floating rate loans are indexed to the London Interbank Offered Rate, or LIBOR. In addition to cash coupon, all-in yield includes accretion of discount (amortization of premium) and accrual of exit fees.

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

Summary of Activity in Loan Portfolio

For the years ended December 31, 2020 and 2019, the activity in the Company’s loan portfolio was as follows:


	For the Year Ended December 31,
	2020			2019
Balance at beginning of period	$	406,645		$	239,207
Loan fundings		358,384			199,128
Loan repayments		(65,289	)		(32,249	)
Amortization of deferred fees on loans		876			689
Exit and extension fees received on loans receivable		(467	)		(130	)

Balance at end of period	$	700,149		$	406,645

Schedule of Loan Receivables Acquired By Property

The following tables detail the property type and geographic location of the properties securing the loans in the Company’s portfolio as of December 31, 2020 and 2019:


	December 31, 2020					December 31, 2019
Property Type	Net Book Value		Percentage			Net Book Value		Percentage
Office	$	174,483		25	%	$	121,151		30	%
Industrial		168,876		24	%		30,019		7	%
Multifamily		130,648		19	%		81,111		20	%
Mixed Use		91,556		13	%		76,833		19	%
Hospitality		62,759		9	%		56,221		14	%
Retail		52,128		7	%		41,310		10	%
Self Storage		19,699		3	%		—		—

Total	$	700,149		100	%	$	406,645		100	%

Schedule of Loan Receivables Acquired By Geographics


	December 31, 2020					December 31, 2019
Geographic Location (1)	Net Book Value		Percentage			Net Book Value		Percentage
South	$	311,123		44	%	$	163,486		40	%
West		201,318		29	%		80,319		20	%
Northeast		168,009		24	%		152,874		38	%
Various		19,699		3	%		—		—
Midwest		—		—			9,966		2	%

Total	$	700,149		100	%	$	406,645		100	%

(1)	As defined by the United States Department of Commerce, Bureau of the Census.

Loans receivable based on internal risk ratings

The following table allocates the net book value of the Company’s loans receivable portfolio based on the Company’s internal risk ratings:


	December 31, 2020							December 31, 2019
Risk Rating	Number of Loans		Net Book Value		Percentage			Number of Loans		Net Book Value		Percentage
1		—	$	—		—			—	$	—		—
2		—		—		—			—		—		—
3		34		689,104		98	%		24		406,645		100	%
4		1		11,045		2	%		—		—		—
5		—		—		—			—		—		—

Total		35	$	700,149		100	%		24	$	406,645		100	%

Mortgage-Backed Securities (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Available-for-sale Securities Reconciliation

The table below summarizes various attributes of the Company’s investments in

available-for-sale

CMBS as of December 31, 2020 and 2019, respectively.


					Gross Unrealized						Weighted Average
	Outstanding Face Amount		Amortized Cost Basis		Gains		Losses		Fair Value		Coupon (1)			Remaining Duration (years)
December 31, 2020
CMBS, available-for-sale		—		—		—		—		—		—			—
December 31, 2019
CMBS, available-for-sale	$	6,634	$	6,634	$	17	$	—	$	6,651		3.20	%		1.7

(1)	Calculated using the one-month LIBOR rate of 1.80% as of December 31, 2019.

Summary of Investment Held-to-maturity CMBS

The table below summarizes various attributes of the Company’s investments in

held-to-maturity

CMBS as of December 31, 2020 and 2019, respectively.


	Net Carrying Amount (Amortized Cost)		Gross Unrecognized Holding Gains		Gross Unrecognized Holding Losses		Fair Value
December 31, 2020
CMBS, held-to-maturity	$	37,314		—		—	$	37,314
December 31, 2019
CMBS, held-to-maturity		—		—		—		—

Summary of Maturities of Investment Held-to-maturity CMBS

The table below summarizes the maturities of the Company’s investments in

held-to-maturity

CMBS as of December 31, 2020:


	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
CMBS, held-to-maturity	$	37,314		—		—	$	37,314		—

Financing Arrangements (Tables)

12 Months Ended

Dec. 31, 2020

Summary of Information of Outstanding Financing Arrangement

The following tables present summary information with respect to the Company’s outstanding financing arrangements as of December 31, 2020 and 2019:

As of December 31, 2020

Arrangement

(1)

Type of
Arrangement

Rate

Amount
Outstanding

Amount
Available

Maturity Date

2019-FL1

Notes

(2)

Collateralized
Loan Obligation

L+1.20% - 2.50%

(3)

327,665

—

December 18, 2036

(4)

WF-1

Facility

(5)

Repurchase

L+2.15% - 2.50%

(6)

29,889

70,111

August 30, 2021

GS-1

Facility

(7)

Repurchase

L+1.75% - 2.75%

(8)

95,571

79,429

January 26, 2021

CNB Facility

Revolving
Credit Facility

L+2.25%

(2)

—

25,000

August 23, 2022

Total

453,125

174,540

(1)	The carrying amount outstanding under the facilities approximates their fair value.

(2)	The carrying amount and fair value of assets transferred as collateral underlying the 2019-FL1 Notes is $411,455 and $409,497, respectively.

(3)	LIBOR is subject to a 0.00% floor.

(4)	The 2019-FL1 Notes mature on the December 2036 payment date, as defined in the Indenture governing the 2019-FL1 Notes and calculated based on the current U.S. federal holidays.

(5)	The carrying amount and fair value of assets transferred as collateral underlying the facility is $39,945 and $39,977, respectively.

(6)	LIBOR is subject to a 0.00% floor. FS CREIT Finance WF-1 LLC, or WF-1, and Wells Fargo Bank, National Association, or Wells Fargo, may mutually agree on rates outside this range or a different LIBOR floor on an asset by asset basis.

(7)	The carrying amount and fair value of assets transferred as collateral underlying the facility is $127,512 and $126,995 respectively.

(8)	LIBOR is subject to a 0.50% floor. FS CREIT Finance GS-1 LLC, or GS-1, and Goldman Sachs Bank USA, or Goldman Sachs, may mutually agree on rates outside this range or a different LIBOR floor on an asset by asset basis.

As of December 31, 2019

Arrangement

(1)

Type of
Arrangement

Rate

Amount
Outstanding

Amount
Available

Maturity Date

2019-FL1

Notes

Collateralized
Loan Obligation

L+1.20% - 2.50%

(2)

327,665

—

December 18, 2036

(3)

WF-1

Facility

Repurchase

L+2.15% - 2.50%

(4)

—

150,000

August 30, 2020

GS-1

Facility

Repurchase

L+1.75% - 2.75%

(5)

—

175,000

January 26, 2020

CNB Facility

Revolving
Credit Facility

L+2.25%

(2)

—

10,000

August 23, 2021

Total

327,665

335,000

(1)	The carrying amount outstanding under the facilities approximates their fair value.

(2)	LIBOR is subject to a 0.00% floor.

(3)	The 2019-FL1 Notes mature on the December 2036 payment date, as defined in the Indenture governing the 2019-FL1 Notes and calculated based on the current U.S. federal holidays.

(4)	LIBOR is subject to a 0.00% floor. WF-1 and Wells Fargo, may mutually agree on rates outside this range or a different LIBOR floor on an asset by asset basis.

(5)	LIBOR is subject to a 0.50% floor. GS-1 and Goldman Sachs, may mutually agree on rates outside this range or a different LIBOR floor on an asset by asset basis.

Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2020

The following table describes the fees and expenses accrued under the advisory agreement during the years ended December 31, 2020, 2019 and 2018:


			Year Ended December 31,
Related Party	Source Agreement	Description	2020		2019		2018
FS Real Estate Advisor	Advisory Agreement	Base Management Fee (1)	$	2,949	$	752	$	70
FS Real Estate Advisor	Advisory Agreement	Performance Fee (2)	$	1,219	$	152	$	44
FS Real Estate Advisor	Advisory Agreement	Administrative Services Expenses (3)	$	2,426	$	2,512	$	1,885

(1)	During the years ended December 31, 2020, 2019 and 2018, $2,403, $476 and $23, respectively, in base management fees were paid to FS Real Estate Advisor. As of December 31, 2020, $869 in base management fees were payable to FS Real Estate Advisor.

(2)	During the years ended December 31, 2020, 2019 and 2018, $903, $176 and $20, respectively, in performance fees were paid to FS Real Estate Advisor. As of December 31, 2020, $316 in performance fees were payable to FS Real Estate Advisor.

(3)

Schedule Of Expense Reimbursed


For the Three Months Ended	Amount of Expense Reimbursement		Recoupable Amount		Recoupment eligibility expiration
December 31, 2020	$	444	$	444		December 31, 2023
September 30, 2020		397		397		September 30, 2023
June 30, 2020		182		182		June 30, 2023
March 31, 2020		—		—		N/A
December 31, 2019		500		500		December 31, 2022
September 30, 2019		491		491		September 30, 2022
June 30, 2019		420		420		June 30, 2022
March 31, 2019		537		537		March 31, 2022
December 31, 2018		709		709		December 31, 2021
September 30, 2018		645		645		September 30, 2021
June 30, 2018		561		561		June 30, 2021
March 31, 2018		356		356		March 31, 2021
December 31, 2017		377		—		Expired December 31, 2020
September 30, 2017		164		—		Expired September 30, 2020

	$	5,783	$	5,242

Stockholder's Equity (Tables)

12 Months Ended

Dec. 31, 2020

Equity [Abstract]

Summary of Common Stock Transactions

Below is a summary of transactions with respect to shares of the Company’s common stock during the years ended December 31, 2020, 2019 and 2018:


	Shares
	Class F			Class Y			Class T			Class S			Class D			Class M			Class I			Total
Balance as of December 31, 2017		988,801			191,114			—			—			—			—			—			1,179,915
Issuance of common stock		1,387,498			—			123,923			3,752			60,774			421,104			127,882			2,124,933
Reinvestment of distributions		95,565			1,899			658			21			160			867			644			99,814
Redemptions of common stock		—			—			—			—			—			(3,979	)		—			(3,979	)

Balance as of December 31, 2018		2,471,864			193,013			124,581			3,773			60,934			417,992			128,526			3,400,683
Issuance of common stock		—			—			842,857			1,347,145			258,386			946,244			1,091,101			4,485,733
Reinvestment of distributions		86,990			—			15,436			1,069			3,282			9,624			11,978			128,379
Redemptions of common stock		(1,083,699	)		(51,897	)		(1,038	)		(400	)		—			(16,042	)		(1,245	)		(1,154,321	)

Balance as of December 31, 2019		1,475,155			141,116			981,836			1,351,587			322,602			1,357,818			1,230,360			6,860,474
Issuance of common stock		—			—			281,353			4,656,388			252,499			823,387			1,341,270			7,354,897
Reinvestment of distributions		29,036			—			35,289			74,149			10,674			34,439			32,774			216,361
Redemptions of common stock		(591,722	)		(4,000	)		(48,685	)		(288,049	)		(19,762	)		(230,322	)		(487,739	)		(1,670,279	)
Transfers in or out		—			—			(4,135	)		(15,435	)		(19,715	)		(14,283	)		54,863			1,295

Balance as of December 31, 2020		912,469			137,116			1,245,658			5,778,640			546,298			1,971,039			2,171,528			12,762,748


	Amount
	Class F			Class Y			Class T			Class S			Class D			Class M			Class I			Total
Balance as of December 31, 2017	$	24,741		$	4,785		$	—		$	—		$	—		$	—		$	—		$	29,526
Issuance of common stock		34,175			—			3,104			94			1,522			10,581			3,151			52,627
Reinvestment of distributions		2,353			47			16			1			4			22			16			2,459
Redemptions of common stock		—			—			—			—			—			(100	)		—			(100	)
Accrued stockholder servicing fees (1)		—			—			(133	)		(4	)		(19	)		(767	)		—			(923	)

Balance as of December 31, 2018		61,269			4,832			2,987			91			1,507			9,736			3,167			83,589
Issuance of common stock		—			—			21,192			34,180			6,506			23,880			26,935			112,693
Reinvestment of distributions		2,160			—			389			27			83			241			296			3,196
Redemptions of common stock		(27,010	)		(1,284	)		(26	)		(10	)		—			(405	)		(31	)		(28,766	)
Accrued stockholder servicing fees (1)		—			—			(926	)		(2,859	)		(81	)		(1,695	)		—			(5,561	)

Balance as of December 31, 2019		36,419			3,548			23,616			31,429			8,015			31,757			30,367			165,151
Issuance of common stock		—			—			7,077			118,049			6,352			20,767			33,048			185,293
Reinvestment of distributions		725			—			886			1,877			268			868			807			5,431
Redemptions of common stock		(14,766	)		(99	)		(1,224	)		(7,273	)		(496	)		(5,797	)		(11,977	)		(41,632	)
Transfers in or out		—			—			(104	)		(391	)		(496	)		(361	)		1,352			—
Accrued stockholder servicing fees (1)		—			—			(280	)		(8,986	)		(70	)		(1,080	)		—			(10,416	)

Balance as of December 31, 2020	$	22,378		$	3,449		$	29,971		$	134,705		$	13,573		$	46,154		$	53,597		$	303,827

(1)

Summary of Cash Distributions Per Share that Paid on its Common Stock

The following table reflects the cash distributions per share that the Company paid on its common stock during the year ended December 31, 2020:


Record Date	Class F		Class Y		Class T		Class S		Class D		Class M		Class I
January 30, 2020	$	0.1610	$	0.1610	$	0.1173	$	0.1173	$	0.1288	$	0.1288	$	0.1350
February 27, 2020		0.1610		0.1610		0.1173		0.1173		0.1288		0.1288		0.1350
March 30, 2020		0.1610		0.1610		0.1173		0.1173		0.1288		0.1288		0.1350
April 29, 2020		0.1610		0.1610		0.1173		0.1173		0.1288		0.1288		0.1350
May 28, 2020		0.1610		0.1610		0.1173		0.1173		0.1288		0.1288		0.1350
June 29, 2020		0.1610		0.1610		0.1173		0.1173		0.1288		0.1288		0.1350
July 30, 2020		0.1610		0.1610		0.1173		0.1173		0.1288		0.1288		0.1350
August 28, 2020		0.1710		0.1710		0.1273		0.1273		0.1388		0.1388		0.1450
September 29, 2020		0.1710		0.1710		0.1273		0.1273		0.1388		0.1388		0.1450
October 31, 2020		0.1710		0.1710		0.1273		0.1273		0.1388		0.1388		0.1450
November 30, 2020		0.1710		0.1710		0.1273		0.1273		0.1388		0.1388		0.1450
December 31, 2020		0.1710		0.1710		0.1273		0.1273		0.1388		0.1388		0.1450

Total	$	1.9820	$	1.9820	$	1.4576	$	1.4576	$	1.5956	$	1.5956	$	1.6700

The following table reflects the amount of cash distributions that the Company paid on its common stock during the years ended December 31, 2020, 2019 and 2018:


	Year Ended December 31,
	2020		2019		2018
Distributions:
Paid or payable in cash	$	11,230	$	5,156	$	1,488
Reinvested in shares		5,431		3,196		2,459

Total distributions	$	16,661	$	8,352	$	3,947

Source of distributions:
Cash flows from operating activities	$	16,661	$	8,352	$	3,947
Offering proceeds		—		—		—

Total sources of distributions	$	16,661	$	8,352	$	3,947

Net cash provided by operating activities (1)	$	21,777	$	11,071	$	5,198

(1)	Cash flows from operating activities are supported by expense support payments from FS Real Estate Advisor and Rialto pursuant to the Company’s expense limitation agreement. See Note 6 for additional information regarding the Company’s expense limitation agreement.

Schedule of Cash Distribution on Class of Common Stock


Class F		Class Y		Class T		Class S		Class D		Class M		Class I
$	0.1710	$	0.1710	$	0.1273	$	0.1273	$	0.1388	$	0.1388	$	0.1450

Distribution of company dividends on percent basis

The following table shows the character of distributions the Company paid on a percentage basis during the years ended December 31, 2020, 2019 and 2018:


	For the Year Ended December 31,
	2020			2019			2018
Ordinary income		100	%		100	%		100	%
Non-taxable return of capital		—			—			—
Capital gain		—			—			—

Total		100	%		100	%		100	%

Fair Value of Financial Instruments

Tabular disclosure of an entity's stock, including par or stated value per share, number and dollar amount of share subscriptions, shares authorized, shares issued, shares outstanding, number and dollar amount of shares held in an employee trust, dividend per share, total dividends, share conversion features, par value plus additional paid in capital, the value of treasury stock and other information necessary to a fair presentation, and EPS information. Stock by class includes common, convertible, and preferred stocks which are not redeemable or redeemable solely at the option of the issuer. Includes preferred stock with redemption features that are solely within the control of the issuer and mandatorily redeemable stock if redemption is required to occur only upon liquidation or termination of the reporting entity. If more than one issue is outstanding, state the title of each issue and the corresponding dollar amount; dollar amount of any shares subscribed but unissued and the deduction of subscriptions receivable there from; number of shares authorized, issued, and outstanding.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=65888546&loc=d3e21300-112643

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(28))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21553-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 480
-SubTopic 10
-Section S99
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=65877616&loc=d3e177068-122764

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
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+ Details

Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

The following table presents the Company’s financial instruments carried at fair value in the consolidated balance sheets by its level in the fair value hierarchy:


	December 31, 2020								December 31, 2019
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Mortgage-backed securities available-for-sale	$	—		—	$	—		—	$	6,651		—	$	6,651		—

Summary of Carrying Amount, Face Amount, and Fair Value of Financial Instruments

The following table details the carrying amount, face amount, and fair value of the financial instruments described in Note 2:


	December 31, 2020						December 31, 2019
	Book Value		Face Amount		Fair Value		Book Value		Face Amount		Fair Value
Financial Assets
Cash, cash equivalents and restricted cash	$	17,874	$	17,874	$	17,874	$	78,155	$	78,155	$	78,155
Loans receivable (1)	$	700,149	$	699,250	$	697,533	$	406,645	$	405,985	$	407,283
Mortgage-backed securities held-to-maturity	$	37,314	$	50,300	$	37,314		—		—		—
Financial Liabilities
Repurchase obligations (2)	$	125,266	$	125,460	$	125,460		—		—		—
Collateralized loan obligation (2)	$	323,109	$	327,665	$	327,665	$	322,182	$	327,665	$	327,665

(1)	Book value of loans receivable represents the face amount, net of unamortized loan fees and costs and accrual of exit fees, as applicable.

(2)	Book value represents the face amount, net of deferred financing costs.

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Variable Interest Entities (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of detailed information about the assets and liabilities

The following table details the assets and liabilities of the Company’s consolidated CLO:


	December 31, 2020		December 31, 2019
Assets:
Restricted cash	$	4	$	35,706
Loans receivable		411,455		385,408
Interest receivable		2,470		1,100
Other assets		15,842		5,241

Total assets	$	429,771	$	427,455

Liabilities
Collateralized loan obligation (net of deferred financing costs of $4,556 and $5,483, respectively)	$	323,109	$	322,182
Interest payable		227		764

Total liabilities	$	323,336	$	322,946

Quarterly Financial Information Disclosure [Abstract]

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

Summary of Quarterly Results (Tables)

12 Months Ended

Dec. 31, 2020

Summary of Quarterly Results

The operating results for any quarter are not necessarily indicative of results for any future period.


	Quarter Ended
	December 31, 2020		September 30, 2020			June 30, 2020		March 31, 2020
Net interest income	$	7,711	$	7,537		$	6,606	$	4,921
Net other expenses		2,608		2,284			2,156		1,313
Other income (loss)		—		(556	)		—		—

Net income	$	5,103	$	4,697		$	4,450	$	3,608

Per share information-basic and diluted
Net income per share of common stock	$	0.42	$	0.44		$	0.44	$	0.40

Weighted average common stock outstanding		12,112,747		10,629,214			10,155,719		8,977,762


	Quarter Ended
	December 31, 2019		September 30, 2019		June 30, 2019		March 31, 2019
Net interest income	$	3,633	$	3,277	$	2,617	$	2,410
Net other expenses		974		769		593		487

Net income	$	2,659	$	2,508	$	2,024	$	1,923

Per share information-basic and diluted
Net income per share of common stock	$	0.43	$	0.47	$	0.45	$	0.51

Weighted average common stock outstanding		6,166,972		5,355,898		4,538,627		3,789,218

Principal Business and Organization - Additional Information (Detail) - Class T, Class S, Class D, Class M and Class I shares [Member] - Maximum [Member]	12 Months Ended
	Dec. 31, 2020 USD ($)
Subsidiary, Sale of Stock [Line Items]
Common stock value submitted for approval under initial public offering	$ 2,750,000,000
Primary Offering [Member]
Subsidiary, Sale of Stock [Line Items]
Common stock value submitted for approval under initial public offering	2,500,000,000
Distribution Reinvestment Plan [Member]
Subsidiary, Sale of Stock [Line Items]
Common stock value submitted for approval under initial public offering	$ 250,000,000

Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Cash and cash equivalents	$ 15,707	$ 40,214
Restricted cash	2,167	37,941
Total cash, cash equivalents and restricted cash	$ 17,874	$ 78,155	$ 2,608	$ 2,442

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands	10 Months Ended	12 Months Ended			38 Months Ended
	Sep. 13, 2017	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019
Cash investment in money market fund		$ 1,000	$ 75,560		$ 75,560
Organization costs incurred	$ 243
Offering costs incurred					$ 12,830
Percentage of distribution of annual REIT taxable income to stockholders to qualify as REIT		90.00%
Unrecognized interest or penalties		$ 0	$ 0	$ 0
Minimum Gross Proceeds From Public Offering To Charge Offering Costs		$ 250,000
Percentage of reimbursement revenue		0.75%
Accrued Unrecognised Interest or Penalties		$ 0

Loans Receivable - Summary of Details Overall Statistics for Loans Receivable Portfolio (Detail) $ in Thousands	12 Months Ended
	Jan. 30, 2021 Loans	Dec. 31, 2020 USD ($) Loans	Dec. 31, 2019 USD ($) Loans	Dec. 31, 2018 USD ($)
Loans and Leases Receivable, Net Amount [Abstract]
Number of loans \| Loans	35	35	24
Principal balance		$ 699,250	$ 405,985
Net book value		700,149	406,645	$ 239,207
Unfunded loan commitments		$ 100,389	$ 44,226
Weighted-average cash coupon		4.25%	4.22%
Weighted-average all-in yield		4.35%	4.39%
Weighted-average maximum maturity (years)		3 years 8 months 12 days	3 years 7 months 6 days

Loans Receivable - Summary of Activity in Loan Portfolio (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Loans and Leases Receivable, Net Amount [Abstract]
Balance at beginning of period	$ 406,645	$ 239,207
Loan fundings	358,384	199,128
Loan repayments	(65,289)	(32,249)
Amortization of deferred fees on loans	876	689
Exit and extension fees received on loans receivable	(467)	(130)
Balance at end of period	$ 700,149	$ 406,645

Loans Receivable - Loan Receivables Acquired By Property (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Net book value	$ 700,149	$ 406,645	$ 239,207
Percentage	100.00%	100.00%
Office [Member]
Net book value	$ 174,483	$ 121,151
Percentage	25.00%	30.00%
Industrial [Member]
Net book value	$ 168,876	$ 30,019
Percentage	24.00%	7.00%
Multifamily [Member]
Net book value	$ 130,648	$ 81,111
Percentage	19.00%	20.00%
Mixed-Use [Member]
Net book value	$ 91,556	$ 76,833
Percentage	13.00%	19.00%
Hospitality [Member]
Net book value	$ 62,759	$ 56,221
Percentage	9.00%	14.00%
Retail [Member]
Net book value	$ 52,128	$ 41,310
Percentage	7.00%	10.00%
Self Storage [Member]
Net book value	$ 19,699
Percentage	3.00%

Loans Receivable - Loan Receivables Acquired By Geographics (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Net book value	$ 700,149	$ 406,645	$ 239,207
Percentage	100.00%	100.00%
South [Member]
Net book value	$ 311,123	$ 163,486
Percentage	44.00%	40.00%
West [Member]
Net book value	$ 201,318	$ 80,319
Percentage	29.00%	20.00%
Northeast [Member]
Net book value	$ 168,009	$ 152,874
Percentage	24.00%	38.00%
Various [Member]
Net book value	$ 19,699
Percentage	3.00%
Midwest [Member]
Net book value		$ 9,966
Percentage		2.00%

Loans Receivable - Additional Information (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($)
Loans and Leases Receivable Disclosure [Line Items]
Net realized gain (loss) on mortgage-backed securities available-for-sale	$ (556)
Commercial Mortgage Backed Securities
Loans and Leases Receivable Disclosure [Line Items]
Proceeds from Sale of Mortgage-backed Securities (MBS), Available-for-sale	16,082
Net realized gain (loss) on mortgage-backed securities available-for-sale	$ 556

Loans Receivable - Summary of loans receivable based on internal risk ratings: (Detail) $ in Thousands	12 Months Ended
	Jan. 30, 2021 Loans	Dec. 31, 2020 USD ($) Loans	Dec. 31, 2019 USD ($) Loans	Dec. 31, 2018 USD ($)
Loans Receivable Based On Internal Risk Ratings [Line Items]
Number of loans \| Loans	35	35	24
Net book value \| $		$ 700,149	$ 406,645	$ 239,207
Percentage		100.00%	100.00%
Risk Level Very Low [Member]
Loans Receivable Based On Internal Risk Ratings [Line Items]
Number of loans \| Loans		0
Net book value \| $		$ 0
Percentage		0.00%
Risk Level, Low [Member]
Loans Receivable Based On Internal Risk Ratings [Line Items]
Number of loans \| Loans		0
Net book value \| $		$ 0
Percentage		0.00%
Risk Level, Medium [Member]
Loans Receivable Based On Internal Risk Ratings [Line Items]
Number of loans \| Loans		34	24
Net book value \| $		$ 689,104	$ 406,645
Percentage		98.00%	100.00%
Risk Level, High [Member]
Loans Receivable Based On Internal Risk Ratings [Line Items]
Number of loans \| Loans		1
Net book value \| $		$ 11,045
Percentage		2.00%
Risk Level Very High [Member]
Loans Receivable Based On Internal Risk Ratings [Line Items]
Number of loans \| Loans		0
Net book value \| $		$ 0
Percentage		0.00%

Mortgage-Backed Securities - Schedule of Available-for-sale Securities Reconciliation (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Outstanding Face Amount	$ 25,555	$ 5,274	$ 2,000
Fair Value	$ 0	$ 6,651
Weighted Average Coupon	4.25%	4.22%
CMBS [Member]
Outstanding Face Amount		$ 6,634
Amortized Cost Basis		6,634
Gross Unrealize Gains		17
Fair Value		$ 6,651
Weighted Average Coupon		3.20%
Weighted Average Remaining Duration (years)		1 year 8 months 12 days

Mortgage-Backed Securities - Schedule of Available-for-sale Securities Reconciliation (Parenthetical) (Detail)	12 Months Ended
	Dec. 31, 2019
Debt Disclosure [Abstract]
LIBOR rate	1.80

Mortgage-Backed Securities - Summary of Investment Held-to-maturity CMBS (Detail) - Commercial Mortgage Backed Securities - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Schedule of Held-to-maturity Securities [Line Items]
Net Carrying Amount (Amortized Cost)	$ 37,314
Gross Unrecognized Holding Gains	0
Gross Unrecognized Holding Losses	0
Fair Value	$ 37,314

Mortgage-Backed Securities - Summary of Maturities of Investment Held-to-maturity CMBS (Detail) - Commercial Mortgage Backed Securities $ in Thousands	Dec. 31, 2020 USD ($)
Schedule of Held-to-maturity Securities [Line Items]
CMBS, held-to-maturity, Total	$ 37,314
CMBS, held-to-maturity, Less than 1 year	0
CMBS, held-to-maturity, 1-3 years	0
CMBS, held-to-maturity, 3-5 years	37,314
CMBS, held-to-maturity, More than 5 years	$ 0

Financing Arrangements - Summary of Information of Outstanding Financing Arrangement (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Assets Sold under Agreements to Repurchase [Line Items]
Amount Outstanding	$ 453,125	$ 327,665
Amount Available	174,540	$ 335,000
Description of variable rate		1.80
2019-FLI Notes [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Amount Outstanding	$ 327,665	$ 327,665
Description of variable rate	L+1.20% - 2.50%	L+1.20% - 2.50%
Maturity Date	Dec. 18, 2036	Dec. 18, 2036
2019-FLI Notes [Member] \| Maximum [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Basis for effective rate	2.50	2.50
2019-FLI Notes [Member] \| Minimum [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Basis for effective rate	1.20	1.20
WF-1 Facility [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Amount Outstanding	$ 29,889
Amount Available	$ 70,111	$ 150,000
Description of variable rate	L+2.15% - 2.50%	L+2.15% - 2.50%
Maturity Date	Aug. 30, 2021	Aug. 30, 2020
WF-1 Facility [Member] \| Maximum [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Basis for effective rate	2.50	2.50
WF-1 Facility [Member] \| Minimum [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Basis for effective rate	2.15	2.15
GS-1 Facility [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Amount Outstanding	$ 95,571
Amount Available	$ 79,429	$ 175,000
Description of variable rate	L+1.75% - 2.75%	L+1.75% - 2.75%
Maturity Date	Jan. 26, 2021	Jan. 26, 2020
GS-1 Facility [Member] \| Maximum [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Basis for effective rate	2.75	2.75
GS-1 Facility [Member] \| Minimum [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Basis for effective rate	1.75	1.75
City National Bank Facility [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Amount Available	$ 25,000	$ 10,000
Description of variable rate	L+2.25%	L+2.25%
Basis for effective rate	2.25	2.25
Maturity Date	Aug. 23, 2022	Aug. 23, 2021

Financing Arrangements - Summary of Information of Outstanding Financing Arrangement (Parenthetical) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Assets Sold under Agreements to Repurchase [Line Items]
LIBOR rate		1.80
London Interbank Offered Rate (LIBOR) [Member]
Assets Sold under Agreements to Repurchase [Line Items]
LIBOR rate	0.00	0.00
2019-FLI Notes [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Carrying amount of asset transferred as collateral	$ 411,455
Fair value of asset transferred as collateral	$ 409,497
LIBOR rate	L+1.20% - 2.50%	L+1.20% - 2.50%
WF-1 Facility [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Carrying amount of asset transferred as collateral	$ 39,945
Fair value of asset transferred as collateral	$ 39,977
LIBOR rate	L+2.15% - 2.50%	L+2.15% - 2.50%
WF-1 Facility [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Assets Sold under Agreements to Repurchase [Line Items]
LIBOR rate	0.00	0.00
GS-1 Facility [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Carrying amount of asset transferred as collateral	$ 127,512
Fair value of asset transferred as collateral	$ 126,995
LIBOR rate	L+1.75% - 2.75%	L+1.75% - 2.75%
GS-1 Facility [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Assets Sold under Agreements to Repurchase [Line Items]
LIBOR rate	0.50	0.50

Financing Arrangements - Additional Information (Detail) - USD ($)			1 Months Ended		3 Months Ended	12 Months Ended
	Jul. 27, 2020	Jan. 26, 2018	Aug. 22, 2019	Aug. 30, 2017	Mar. 31, 2020	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 23, 2020	Dec. 22, 2020	Aug. 27, 2020	Mar. 23, 2020	Mar. 22, 2020	Dec. 05, 2019
Assets Sold under Agreements to Repurchase [Line Items]
Debt issuance cost incurred						$ 1,357,000	$ 6,424,000	$ 1,314,000
Deferred financing costs						$ 152,000	$ 500,000
Issuance of preferred shares						125	0
Preferred shares issued per share						$ 0.01	$ 0.01
Description of variable rate							1.80
Collateralized Loan Obligations [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Deferred financing costs						$ 4,556,000	$ 5,483,000
Issuance of preferred shares						45,288
Preferred shares issued per share						$ 0.001
Aggregate liquidation of preferred shares						$ 1,000
Debt issuance cost incurred						$ 5,813,000
Amortization expense od debt issuance cost						4,556,000
Collateralized Loan Obligations [Member] \| Class A Senior Secured Floating Rate Notes Due 2036 [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Debt Instrument, Face Amount						$ 224,837,000
Description of variable rate						LIBOR plus 1.20
Spread on LIBOR						1.20%
Additional Interest Rate						0.25%
Collateralized Loan Obligations [Member] \| Class A-S Second Priority Secured Floating Rate Notes Due 2036 [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Debt Instrument, Face Amount						$ 47,418,000
Description of variable rate						LIBOR plus 1.45
Spread on LIBOR						1.45%
Additional Interest Rate						0.25%
Collateralized Loan Obligations [Member] \| Class B Third Priority Secured Floating Rate Notes Due 2036 [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Debt Instrument, Face Amount						$ 27,173,000
Description of variable rate						LIBOR plus 1.90
Spread on LIBOR						1.90%
Additional Interest Rate						0.50%
Collateralized Loan Obligations [Member] \| Class C Fourth Priority Secured Floating Rate Notes Due 2036 [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Debt Instrument, Face Amount						$ 28,237,000
Description of variable rate						LIBOR plus 2.50
Spread on LIBOR						2.50%
Additional Interest Rate						0.50%
Collateralized Loan Obligations [Member] \| Class D Fifth Priority Secured Floating Rate Notes Due 2036 [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Debt Instrument, Face Amount						$ 32,501,000
Description of variable rate						LIBOR plus 2.80
Spread on LIBOR						2.80%
Additional Interest Rate						0.50%
Collateralized Loan Obligations [Member] \| Class E Sixth Priority Floating Rate Notes Due 2036 [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Debt Instrument, Face Amount						$ 9,590,000
Description of variable rate						LIBOR plus 4.50
Spread on LIBOR						4.50%
Additional Interest Rate						0.50%
Collateralized Loan Obligations [Member] \| Class F Seventh Priority Floating Rate Notes Due 2036 [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Debt Instrument, Face Amount						$ 11,188,000
Description of variable rate						LIBOR plus 6.00
Spread on LIBOR						6.00%
Additional Interest Rate						0.50%
Collateralized Loan Obligations [Member] \| Two Three commercial estate loans [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Securities collatered against loans						$ 410,521,000
SubREIT [Member] \| Collateralized Loan Obligations [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Total Debt financing cost														$ 327,665,000
Well Fargo Securities LLC [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Outstanding equity capital threshold, percentage						75.00%
LIBOR [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Description of variable rate						0.00	0.00
WF-1 Facility [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Average borrowings						$ 413,236,000	$ 206,149,000
Maximum amount of financing available						100,000,000
Increase in amount of financing available						200,000,000
Debt issuance cost incurred				$ 1,558,000
Deferred financing costs						$ 131,000
Covenant description					The WF-1 Repurchase Agreement and WF-1 Guarantee, as amended, contain representations, warranties, covenants, events of default and indemnities that are customary for agreements of their type. In addition, WF-1 is required to maintain a certain minimum liquidity amount in a collateral account with Wells Fargo and the Company is required (i) to maintain its adjusted tangible net worth at an amount equal to or greater than the greater of (A) (i) 75% of all equity capital raised by the Company from and after its date of formation plus (ii) 75% of certain outstanding capital commitments minus (iii) 75% of the amounts expended by the Company for equity redemptions or repurchases from and after its date of formation and (B) 75% of the then-current maximum facility size; (ii) to maintain an earnings before interest, taxes, depreciation and amortization, or EBITDA, to interest expense ratio not less than 1.50 to 1.00; (iii) to maintain a total indebtedness to tangible net worth ratio of less than 3.00 to 1.00; and (iv) to maintain liquidity of not less than 7.5% of the amount outstanding under the WF-1 Facility.
Equity capital threshold, percentage						75.00%
Percentage of current maximum facility						75.00%
EBITDA to interest expense ratio						1.50%
Total indebtedness to tangible net worth ratio						3.00%
Cash to be maintained in cash collateral accounts with respect to maximum borrowings						7.50%
Weighted Average Rate						2.12%	4.36%
Description of variable rate						L+2.15% - 2.50%	L+2.15% - 2.50%
Equity capital redemption threshold, percentage						75.00%
WF-1 Facility [Member] \| Wells Fargo Repurchase Agreement [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Maximum amount of financing available											$ 100,000,000
Increase in amount of financing available											$ 200,000,000
Line of Credit Facility, Expiration Date	Aug. 30, 2021
WF-1 Facility [Member] \| LIBOR [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Description of variable rate						0.00	0.00
GS-1 Facility [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Maximum amount of financing available						$ 175,000,000
Increase in amount of financing available						250,000,000
Debt issuance cost incurred						2,068,000
Deferred financing costs						$ 63,000
Covenant description						The GS-1 Repurchase Agreement and GS-1 Guarantee, as amended, contain representations, warranties, covenants, events of default and indemnities that are customary for agreements of their type. In addition, the Company is required (i) to maintain its adjusted tangible net worth at an amount equal to or greater than (a) 75% of all equity capital raised by the Company from and after its date of formation plus (b) 75% of certain outstanding capital commitments minus (c) 75% of the amounts expended by the Company for equity redemptions or repurchases from and after its date of formation; (ii) to maintain an EBITDA to interest expense ratio not less than 1.50 to 1.00; (iii) to maintain a total indebtedness to tangible net worth ratio of less than 3.00 to 1.00; and (iv) to maintain liquidity at not less than 7.5% of the amount outstanding under the GS-1 Facility.
Equity capital threshold, percentage		75.00%
EBITDA to interest expense ratio		1.50%
Total indebtedness to tangible net worth ratio		3.00%
Guarantee obligations percentage of repurchase agreement		50.00%
Description of variable rate						L+1.75% - 2.75%	L+1.75% - 2.75%
Outstanding equity capital threshold, percentage						75.00%
Equity capital redemption threshold, percentage						75.00%
GS-1 Facility [Member] \| LIBOR [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Description of variable rate						0.50	0.50
City National Bank Facility [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Maximum amount of financing available			$ 10,000,000						$ 25,000,000	$ 15,000,000		$ 15,000,000	$ 10,000,000
Increase in amount of financing available			25,000,000
Debt issuance cost incurred			$ 314,000
Deferred financing costs						$ 152,000
Description of variable rate						L+2.25%	L+2.25%
Minimum Net Asset Value									$ 175,000,000	$ 100,000,000		$ 100,000,000	$ 85,000,000
City National Bank Facility [Member] \| LIBOR [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Unused capacity commitment fee percentage			0.375%
Description of variable rate						LIBOR plus a spread of 2.25%
Spread on LIBOR			2.25%

Related Party Transactions - Additional Information (Detail) - USD ($)				12 Months Ended	50 Months Ended
	Nov. 01, 2020	Feb. 14, 2020	Dec. 08, 2016	Dec. 31, 2020	Dec. 31, 2020	Mar. 22, 2021	Dec. 31, 2019	Oct. 25, 2019
Related Party Transaction [Line Items]
Performance fee percentage				10.00%
Hurdle rate on average adjusted capital				1.625%
Annualized hurdle rate				6.50%
Quarterly core earnings rate				1.806%
Annualized core earnings rate				7.222%
Reimbursement due from sponsor				$ 444,000	$ 444,000		$ 500,000
Common stock allocated to investors								$ 21,400,000
Investments to be maintained				10,000,000	10,000,000
Due to Related Parties				15,481,000	15,481,000		$ 6,290,000
Organization and offering costs					$ 13,073,000
Common Class Y [Member]
Related Party Transaction [Line Items]
Base management fee				0
Class D, Class M, Class I, Class F Or Class Y Shares [Member]
Related Party Transaction [Line Items]
Selling commissions or dealer manager fees payable				0
Common Class F [Member]
Related Party Transaction [Line Items]
Base management fee				$ 0
Performance fee percentage				0.00%
Maximum [Member]
Related Party Transaction [Line Items]
Organization and offering expenses reimbursement as percentage of gross proceeds from public offering				15.00%	15.00%
FS Real Estate Advisor [Member]
Related Party Transaction [Line Items]
Base management fee percentage				1.25%
Base management fee description				equal to 1.25% of the NAV for the Company’s Class T, Class S, Class D, Class M and Class I shares, payable quarterly in arrears
Percentage of base management fees and performance fees payable to advisor				50.00%
Minimum gross proceeds from public offering to reimburse expense				$ 250,000,000
Organization and offering expenses reimbursement as percentage of gross proceeds from public offering				0.75%	0.75%
FS Real Estate Advisor [Member] \| Expense Limitation [Member]
Related Party Transaction [Line Items]
Percentage of minimum operating expenses to be waived or paid				1.50%
FS Real Estate Advisor [Member] \| Common Class S [Member]
Related Party Transaction [Line Items]
Dealer manager upfront selling commissions fees percentage				3.50%
Stockholders servicing fee percentage on aggregate NAV of outstanding shares				0.85%
Stockholder servicing fees percentage				8.75%	8.75%
FS Real Estate Advisor [Member] \| Common Class T [Member]
Related Party Transaction [Line Items]
Dealer manager upfront selling commissions fees percentage				3.00%
Upfront dealer manager fees percentage				0.50%
Stockholders servicing fee percentage on aggregate NAV of outstanding shares				0.85%
Advisor stockholders servicing fee percentage on aggregate NAV of outstanding shares				0.65%
Dealer stockholders servicing fee percentage on aggregate NAV of outstanding shares				0.20%
Stockholder servicing fees percentage				8.75%	8.75%
Selling commission and fee maximum percent				3.50%
FS Real Estate Advisor [Member] \| Common Class D [Member]
Related Party Transaction [Line Items]
Stockholders servicing fee percentage on aggregate NAV of outstanding shares				0.30%
Stockholder servicing fees percentage				1.25%	1.25%
FS Real Estate Advisor [Member] \| Common Class M [Member]
Related Party Transaction [Line Items]
Stockholders servicing fee percentage on aggregate NAV of outstanding shares				0.30%
Stockholder servicing fees percentage				7.25%	7.25%
FS Real Estate Advisor [Member] \| Class T, Class T-C and Class M Shares [Member]
Related Party Transaction [Line Items]
Stockholder servicing fees percentage				10.00%	10.00%
FS Real Estate Advisor [Member] \| Common Class F [Member] \| Subsequent Event [Member]
Related Party Transaction [Line Items]
Investments Owned						$ 21,800
FS Real Estate Advisor [Member] \| Class T, Class S, Class D and Class M Share [Member]
Related Party Transaction [Line Items]
Stockholder servicing fees percentage				10.00%	10.00%
FS Real Estate Advisor [Member] \| Maximum [Member] \| Expense Limitation [Member]
Related Party Transaction [Line Items]
Period for which reimbursement payable				3 years
FS Real Estate Advisor and Rialto [Member]
Related Party Transaction [Line Items]
Reimbursement expenses due from sponsor				$ 1,023,000
Amount received as reimbursement				5,339,000
Due to Related Parties				12,788,000	$ 12,788,000
Rialto [Member]
Related Party Transaction [Line Items]
Purchase of floating-rate whole mortgage loan				$ 5,783,000
FS Investments and Rialto [Member] \| Private Placement [Member]
Related Party Transaction [Line Items]
Aggregate proceeds from private placement			$ 200,000
Number of common shares issued			8,000
Common stock, price per share				$ 25.00	$ 25.00
FS Investments and Rialto [Member] \| Common Class S [Member] \| Private Placement [Member]
Related Party Transaction [Line Items]
Additional Purchase Commitment Period	expired on November 1, 2020
FS Investments and Rialto [Member] \| Common Class F [Member]
Related Party Transaction [Line Items]
Repurchase of shares								$ 17,000,000
Share price per share				$ 24.95
FS Investments and Rialto [Member] \| Common Class F [Member] \| Private Placement [Member]
Related Party Transaction [Line Items]
Net assets				$ 750,000	$ 750,000
MCFDA SCV LLC [Member] \| Common Class F [Member]
Related Party Transaction [Line Items]
Repurchase of shares		$ 14,700,000
Share price per share		$ 24.95

Related Party Transactions - Summary of Fees and Expenses Accrued under Advisory Agreement (Detail) - Fs Real Estate Advisor [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Base Management Fees [Member]
Related Party Transaction [Line Items]
FS Real Estate Advisor	$ 2,949	$ 752	$ 70
Performance Fees [Member]
Related Party Transaction [Line Items]
FS Real Estate Advisor	1,219	152	44
Administrative Services Expenses [Member]
Related Party Transaction [Line Items]
FS Real Estate Advisor	$ 2,426	$ 2,512	$ 1,885

Related Party Transactions - Summary of Fees and Expenses Accrued under Advisory Agreement (Parenthetical) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Base Management Fees [Member] \| Fs Real Estate Advisor [Member]
Related Party Transaction [Line Items]
Fees and expenses accrued	$ 2,403	$ 476	$ 23
Management Fee Payable	869
Performance Fees [Member] \| Fs Real Estate Advisor [Member]
Related Party Transaction [Line Items]
Fees and expenses accrued	903	176	20
Performance Fee Payable	316
Administrative Services Expenses [Member] \| Related Party For Services Rendered [Member]
Related Party Transaction [Line Items]
Fees and expenses accrued	$ 2,248	$ 2,284	$ 1,826

Related Party Transactions - Summary of reimbursed by FS Real Estate (Detail) - USD ($) $ in Thousands	3 Months Ended														12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2020
Schedule Of Expense Reimbursed [Line Items]
Expense Reimbursement	$ 444	$ 397	$ 182		$ 500	$ 491	$ 420	$ 537	$ 709	$ 645	$ 561	$ 356	$ 377	$ 164	$ 5,783
Recoupable Amount	$ 444	$ 397	$ 182		$ 500	$ 491	$ 420	$ 537	$ 709	$ 645	$ 561	$ 356			$ 5,242
Recoupment eligibility expiration	December 31, 2023	September 30, 2023	June 30, 2023		December 31, 2022	September 30, 2022	June 30, 2022	March 31, 2022	December 31, 2021	September 30, 2021	June 30, 2021	March 31, 2021	December 31, 2020	September 30, 2020

Stockholder's Equity - Summary of Common Stock Transactions (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Class of Stock [Line Items]
Balance at beginning of period, amount	$ 165,787	$ 83,436	$ 29,339
Issuance of common stock, amount	185,293	112,693	52,627
Reinvestment of distributions, amount	5,431	3,196	2,459
Redemptions of common stock, amount	(41,632)	(28,766)	(100)
Balance at end of period, amount	305,712	165,787	83,436
Common Class F [Member]
Class of Stock [Line Items]
Balance at beginning of period, amount	15	25	10
Issuance of common stock, amount			14
Reinvestment of distributions, amount		1	1
Redemptions of common stock, amount	(6)	(11)
Balance at end of period, amount	9	15	25
Common Class Y [Member]
Class of Stock [Line Items]
Balance at beginning of period, amount	1	2	2
Redemptions of common stock, amount		(1)
Balance at end of period, amount	1	1	2
Common Class T [Member]
Class of Stock [Line Items]
Balance at beginning of period, amount	10	1
Issuance of common stock, amount	3	9	1
Redemptions of common stock, amount	(1)
Balance at end of period, amount	12	10	1
Common Class S [Member]
Class of Stock [Line Items]
Balance at beginning of period, amount	14
Issuance of common stock, amount	46	14
Reinvestment of distributions, amount	1
Redemptions of common stock, amount	(3)
Balance at end of period, amount	58	14
Common Class D [Member]
Class of Stock [Line Items]
Balance at beginning of period, amount	3	1
Issuance of common stock, amount	2	2	1
Balance at end of period, amount	5	3	1
Common Class M [Member]
Class of Stock [Line Items]
Balance at beginning of period, amount	14	4
Issuance of common stock, amount	8	10	4
Reinvestment of distributions, amount	1
Redemptions of common stock, amount	(3)
Balance at end of period, amount	20	14	4
Common Class I [Member]
Class of Stock [Line Items]
Balance at beginning of period, amount	12	1
Issuance of common stock, amount	14	11	1
Redemptions of common stock, amount	(4)
Balance at end of period, amount	$ 22	$ 12	$ 1
Common Stock [Member]
Class of Stock [Line Items]
Balance at beginning of period, shares	6,860,474	3,400,683	1,179,915
Issuance of common stock, shares	7,354,897	4,485,733	2,124,933
Reinvestment of distributions, shares	216,361	128,379	99,814
Redemptions of common stock, shares	(1,670,279)	(1,154,321)	(3,979)
Transfers in or out, shares	1,295
Balance at end of period, shares	12,762,748	6,860,474	3,400,683
Balance at beginning of period, amount	$ 165,151	$ 83,589	$ 29,526
Issuance of common stock, amount	185,293	112,693	52,627
Reinvestment of distributions, amount	5,431	3,196	2,459
Redemptions of common stock, amount	(41,632)	(28,766)	(100)
Accrued stockholder servicing fees, amount	(10,416)	(5,561)	(923)
Balance at end of period, amount	$ 303,827	$ 165,151	$ 83,589
Common Stock [Member] \| Common Class F [Member]
Class of Stock [Line Items]
Balance at beginning of period, shares	1,475,155	2,471,864	988,801
Issuance of common stock, shares			1,387,498
Reinvestment of distributions, shares	29,036	86,990	95,565
Redemptions of common stock, shares	(591,722)	(1,083,699)
Balance at end of period, shares	912,469	1,475,155	2,471,864
Balance at beginning of period, amount	$ 36,419	$ 61,269	$ 24,741
Issuance of common stock, amount			34,175
Reinvestment of distributions, amount	725	2,160	2,353
Redemptions of common stock, amount	(14,766)	(27,010)
Balance at end of period, amount	$ 22,378	$ 36,419	$ 61,269
Common Stock [Member] \| Common Class Y [Member]
Class of Stock [Line Items]
Balance at beginning of period, shares	141,116	193,013	191,114
Reinvestment of distributions, shares			1,899
Redemptions of common stock, shares	(4,000)	(51,897)
Balance at end of period, shares	137,116	141,116	193,013
Balance at beginning of period, amount	$ 3,548	$ 4,832	$ 4,785
Reinvestment of distributions, amount			47
Redemptions of common stock, amount	(99)	(1,284)
Balance at end of period, amount	$ 3,449	$ 3,548	$ 4,832
Common Stock [Member] \| Common Class T [Member]
Class of Stock [Line Items]
Balance at beginning of period, shares	981,836	124,581
Issuance of common stock, shares	281,353	842,857	123,923
Reinvestment of distributions, shares	35,289	15,436	658
Redemptions of common stock, shares	(48,685)	(1,038)
Transfers in or out, shares	(4,135)
Balance at end of period, shares	1,245,658	981,836	124,581
Balance at beginning of period, amount	$ 23,616	$ 2,987
Issuance of common stock, amount	7,077	21,192	$ 3,104
Reinvestment of distributions, amount	886	389	16
Redemptions of common stock, amount	(1,224)	(26)
Accrued stockholder servicing fees, amount	(280)	(926)	(133)
Transfers in or out, amount	(104)
Balance at end of period, amount	$ 29,971	$ 23,616	$ 2,987
Common Stock [Member] \| Common Class S [Member]
Class of Stock [Line Items]
Balance at beginning of period, shares	1,351,587	3,773
Issuance of common stock, shares	4,656,388	1,347,145	3,752
Reinvestment of distributions, shares	74,149	1,069	21
Redemptions of common stock, shares	(288,049)	(400)
Transfers in or out, shares	(15,435)
Balance at end of period, shares	5,778,640	1,351,587	3,773
Balance at beginning of period, amount	$ 31,429	$ 91
Issuance of common stock, amount	118,049	34,180	$ 94
Reinvestment of distributions, amount	1,877	27	1
Redemptions of common stock, amount	(7,273)	(10)
Accrued stockholder servicing fees, amount	(8,986)	(2,859)	(4)
Transfers in or out, amount	(391)
Balance at end of period, amount	$ 134,705	$ 31,429	$ 91
Common Stock [Member] \| Common Class D [Member]
Class of Stock [Line Items]
Balance at beginning of period, shares	322,602	60,934
Issuance of common stock, shares	252,499	258,386	60,774
Reinvestment of distributions, shares	10,674	3,282	160
Redemptions of common stock, shares	(19,762)
Transfers in or out, shares	(19,715)
Balance at end of period, shares	546,298	322,602	60,934
Balance at beginning of period, amount	$ 8,015	$ 1,507
Issuance of common stock, amount	6,352	6,506	$ 1,522
Reinvestment of distributions, amount	268	83	4
Redemptions of common stock, amount	(496)
Accrued stockholder servicing fees, amount	(70)	(81)	(19)
Transfers in or out, amount	(496)
Balance at end of period, amount	$ 13,573	$ 8,015	$ 1,507
Common Stock [Member] \| Common Class M [Member]
Class of Stock [Line Items]
Balance at beginning of period, shares	1,357,818	417,992
Issuance of common stock, shares	823,387	946,244	421,104
Reinvestment of distributions, shares	34,439	9,624	867
Redemptions of common stock, shares	(230,322)	(16,042)	(3,979)
Transfers in or out, shares	(14,283)
Balance at end of period, shares	1,971,039	1,357,818	417,992
Balance at beginning of period, amount	$ 31,757	$ 9,736
Issuance of common stock, amount	20,767	23,880	$ 10,581
Reinvestment of distributions, amount	868	241	22
Redemptions of common stock, amount	(5,797)	(405)	(100)
Accrued stockholder servicing fees, amount	(1,080)	(1,695)	(767)
Transfers in or out, amount	(361)
Balance at end of period, amount	$ 46,154	$ 31,757	$ 9,736
Common Stock [Member] \| Common Class I [Member]
Class of Stock [Line Items]
Balance at beginning of period, shares	1,230,360	128,526
Issuance of common stock, shares	1,341,270	1,091,101	127,882
Reinvestment of distributions, shares	32,774	11,978	644
Redemptions of common stock, shares	(487,739)	(1,245)
Transfers in or out, shares	54,863
Balance at end of period, shares	2,171,528	1,230,360	128,526
Balance at beginning of period, amount	$ 30,367	$ 3,167
Issuance of common stock, amount	33,048	26,935	$ 3,151
Reinvestment of distributions, amount	807	296	16
Redemptions of common stock, amount	(11,977)	(31)
Transfers in or out, amount	1,352
Balance at end of period, amount	$ 53,597	$ 30,367	$ 3,167

Stockholder's Equity - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Percentage limited to repurchase of shares to NAV of all classes of shares	20.00%
Shares repurchased under repurchase plan	1,670,279	1,154,321	3,979
Shares repurchased under repurchase plan, value	$ 41,632,000	$ 28,766,000	$ 100,000
Percentage Deduction on gross Total income	20.00%
Unfulfilled repurchase requests	179,318
Preferred stock, shares issued	125	0
Proceeds from Issuance of Preferred Stock	$ 125,000
Maximum [Member]
Repurchase of shares to NAV of all classes of shares, percentage	5.00%
Series A Preferred Stock [Member]
Preferred stock, shares issued	125
Proceeds from Issuance of Preferred Stock	$ 125
Preferred Stock, Dividend Rate	12.00%

Stockholder's Equity - Summary of Cash Distributions Per Share that Paid on its Common Stock (Detail) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended												12 Months Ended
	Dec. 31, 2020	Nov. 30, 2020	Oct. 31, 2020	Sep. 29, 2020	Aug. 28, 2020	Jul. 30, 2020	Jun. 29, 2020	May 28, 2020	Apr. 29, 2020	Mar. 30, 2020	Feb. 27, 2020	Jan. 30, 2020	Jan. 30, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Distributions:
Paid or payable in cash														$ 11,230	$ 5,156	$ 1,488
Reinvested in shares														5,431	3,196	2,459
Total distributions														16,661	8,352	3,947
Cash flows from operating activities														16,661	8,352	3,947
Offering proceeds													$ 0
Total sources of distributions														16,661	8,352	3,947
Net cash provided by operating activities														$ 21,777	$ 11,071	$ 5,198
Common Class F [Member]
Dividends Payable [Line Items]
Distributions paid per share of common stock	$ 0.1710	$ 0.1710	$ 0.1710	$ 0.1710	$ 0.1710	$ 0.1610	$ 0.1610	$ 0.1610	$ 0.1610	$ 0.1610	$ 0.1610	$ 0.1610		$ 1.9820
Common Class Y [Member]
Dividends Payable [Line Items]
Distributions paid per share of common stock	0.1710	0.1710	0.1710	0.1710	0.1710	0.1610	0.1610	0.1610	0.1610	0.1610	0.1610	0.1610		1.9820
Common Class T [Member]
Dividends Payable [Line Items]
Distributions paid per share of common stock	0.1273	0.1273	0.1273	0.1273	0.1273	0.1173	0.1173	0.1173	0.1173	0.1173	0.1173	0.1173		1.4576
Common Class S [Member]
Dividends Payable [Line Items]
Distributions paid per share of common stock	0.1273	0.1273	0.1273	0.1273	0.1273	0.1173	0.1173	0.1173	0.1173	0.1173	0.1173	0.1173		1.4576
Common Class D [Member]
Dividends Payable [Line Items]
Distributions paid per share of common stock	0.1388	0.1388	0.1388	0.1388	0.1388	0.1288	0.1288	0.1288	0.1288	0.1288	0.1288	0.1288		1.5956
Common Class M [Member]
Dividends Payable [Line Items]
Distributions paid per share of common stock	0.1388	0.1388	0.1388	0.1388	0.1388	0.1288	0.1288	0.1288	0.1288	0.1288	0.1288	0.1288		1.5956
Common Class I [Member]
Dividends Payable [Line Items]
Distributions paid per share of common stock	$ 0.1450	$ 0.1450	$ 0.1450	$ 0.1450	$ 0.1450	$ 0.1350	$ 0.1350	$ 0.1350	$ 0.1350	$ 0.1350	$ 0.1350	$ 0.1350		$ 1.6700

Stockholder's Equity - Schedule of Cash Distribution On Class of Common Stock (Detail) - $ / shares	1 Months Ended
	Mar. 31, 2021	Feb. 28, 2021	Jan. 31, 2021
Common Class F [Member]
Class of Stock [Line Items]
Distributions declared per share for each class of outstanding common stock	$ 0.1710	$ 0.1710	$ 0.1710
Common Class Y [Member]
Class of Stock [Line Items]
Distributions declared per share for each class of outstanding common stock	0.1710	0.1710	0.1710
Common Class T [Member]
Class of Stock [Line Items]
Distributions declared per share for each class of outstanding common stock	0.1273	0.1273	0.1273
Common Class S [Member]
Class of Stock [Line Items]
Distributions declared per share for each class of outstanding common stock	0.1273	0.1273	0.1273
Common Class D [Member]
Class of Stock [Line Items]
Distributions declared per share for each class of outstanding common stock	0.1388	0.1388	0.1388
Common Class M [Member]
Class of Stock [Line Items]
Distributions declared per share for each class of outstanding common stock	0.1388	0.1388	0.1388
Common Class I [Member]
Class of Stock [Line Items]
Distributions declared per share for each class of outstanding common stock	$ 0.1450	$ 0.1450	$ 0.1450

Stockholder's Equity - Detailed distribution of company dividends on percent basis (Detail)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Percentage basis on dividend Distribution [Abstract]
Ordinary income	100.00%	100.00%	100.00%
Non-taxable return of capital	0.00%
Capital gain	0.00%
Total	100.00%	100.00%	100.00%

Fair Value of Financial Instruments - Summary Of Company Financial Instruments Carried At Fair Value In The Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Mortgage-backed securities available for sale	$ 0	$ 6,651
Fair Value, Inputs, Level 1 [Member]
Mortgage-backed securities available for sale	0	0
Fair Value, Inputs, Level 2 [Member]
Mortgage-backed securities available for sale	0	6,651
Fair Value, Inputs, Level 3 [Member]
Mortgage-backed securities available for sale	$ 0	$ 0

Fair Value of Financial Instruments - Summary of Carrying Amount, Face Amount, and Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgage-backed securities available for sale	$ 37,314
Collateralized loan obligation	323,109	$ 322,182
Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash, cash equivalents and restricted cash	17,874	78,155
Loans receivable	700,149	406,645
Mortgage-backed securities available for sale	37,314
Repurchase obligations	125,266
Collateralized loan obligation	323,109	322,182
Portion at Other than Fair Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash, cash equivalents and restricted cash	17,874	78,155
Loans receivable	699,250	405,985
Mortgage-backed securities available for sale	50,300
Repurchase obligations	125,460
Collateralized loan obligation	327,665	327,665
Estimate of Fair Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash, cash equivalents and restricted cash	17,874	78,155
Loans receivable	697,533	407,283
Mortgage-backed securities available for sale	37,314
Repurchase obligations	125,460
Collateralized loan obligation	$ 327,665	$ 327,665

Variable Interest Entities - Schedule of detailed information about the assets and liabilities (Details) - USD ($)
$ in Thousands

Dec. 31, 2020

Dec. 31, 2019

^[1]

$ 774,979

$ 498,780

Variable Interest Entity, Primary Beneficiary [Member]

469,267

332,993

429,771

427,455

Restricted cash [Member] | Variable Interest Entity, Primary Beneficiary [Member]

323,336

322,946

Loans Receivable [Member] | Variable Interest Entity, Primary Beneficiary [Member]

35,706

Interest receivable [Member] | Variable Interest Entity, Primary Beneficiary [Member]

411,455

385,408

Other Assets [Member] | Variable Interest Entity, Primary Beneficiary [Member]

2,470

1,100

Collateralized loan obligation [Member] | Variable Interest Entity, Primary Beneficiary [Member]

15,842

5,241

Interest payable [Member] | Variable Interest Entity, Primary Beneficiary [Member]

323,109

322,182

$ 227

$ 764

[1]

Variable Interest Entities - Schedule of detailed information about the assets and liabilities (Parenthetical) (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Deferred financing cost [Member]
Variable Interest Entity [Line Items]
Deferred Offering Costs	$ 4,556	$ 5,483

Variable Interest Entities - Additional Information (Detail) - Variable Interest Entity, Not Primary Beneficiary [Member] - Commercial Mortgage Backed Securities $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($)
Variable Interest Entity [Line Items]
Payments to Acquire Equity Method Investments	$ 37,005
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount	$ 37,314

Summary of Quarterly Results - Summary of Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]
Net interest income	$ 7,711	$ 7,537	$ 6,606	$ 4,921	$ 3,633	$ 3,277	$ 2,617	$ 2,410	$ 38,127	$ 22,378	$ 10,540
Net other expenses	2,608	2,284	2,156	1,313	974	769	593	487	8,361	2,823	945
Other income (loss)		(556)							(556)
Net income	$ 5,103	$ 4,697	$ 4,450	$ 3,608	$ 2,659	$ 2,508	$ 2,024	$ 1,923	$ 17,858	$ 9,114	$ 3,991
Per share information-basic and diluted
Net income per share of common stock	$ 0.42	$ 0.44	$ 0.44	$ 0.40	$ 0.43	$ 0.47	$ 0.45	$ 0.51	$ 1.70	$ 1.83	$ 1.84
Weighted average common stock outstanding	12,112,747	10,629,214	10,155,719	8,977,762	6,166,972	5,355,898	4,538,627	3,789,218	10,473,787	4,970,324	2,165,753