InPoint Commercial Real Estate Income, Inc. reported its financial results for the three and nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

As of September 30, 2024, total assets decreased to $727.9 million from $780.3 million at the end of 2023. The company experienced a decline in commercial mortgage loans at cost, net, which fell to $640.0 million from $722.0 million. However, cash and cash equivalents increased to $58.8 million, up from $54.1 million. Total liabilities also decreased to $482.3 million from $529.8 million, while total stockholders’ equity slightly declined to $245.6 million from $250.6 million.

For the three months ended September 30, 2024, interest income was reported at $14.8 million, down from $17.4 million in the same period of 2023. Net interest income also decreased to $5.3 million from $6.6 million. Revenue from real estate significantly dropped to $1.3 million from $4.5 million, primarily due to the sale of the Renaissance O’Hare hotel in September 2023. Total income for the quarter was $6.5 million, compared to $11.1 million in the prior year. The net income for the quarter was $615,000, a sharp decline from $5.0 million in Q3 2023, with a net loss attributable to common stockholders of $880,000, compared to a profit of $3.5 million in the previous year.

For the nine months ended September 30, 2024, net income improved to $9.0 million from a net loss of $5.7 million in the same period of 2023. The net income attributable to common stockholders was $4.5 million, a turnaround from a loss of $10.2 million in the prior year. The company reported net cash provided by operating activities of $13.4 million, an increase from $12.3 million in 2023.

Strategically, InPoint acquired two office properties in Addison, Texas, through non-judicial foreclosure on July 2, 2024, with an amortized cost basis of $24.4 million. The company also recognized a gain of $929,000 from the sale of a loan that had been placed on nonaccrual status. The allowance for credit losses increased to $24.0 million, reflecting management's assessment of expected credit losses in the investment portfolio.

The company suspended its Share Repurchase Program and the sale of shares in the primary portion of its Second Public Offering effective January 30, 2023, due to high redemption requests exceeding fundraising. As of September 30, 2024, InPoint had no off-balance sheet arrangements that could materially affect its financial condition.