Our monthly Groundfloor Asset Management series remains committed to highlighting key performance metrics and other relevant data managed by our Asset Management team. In this month's blog, we continue to deliver the key metrics you expect from this series, as well as provide highlights from the month.
By The Numbers
Within this segment, we present insights into the metrics relating to the loan portfolio performance for the month of September. Our assessment will encompass loan payoffs, repayment and interest volume, rate of return, and loss ratios. Additionally, we have included comprehensive views of our loan performance states and a detailed overview of the data from the beginning of the year for enhanced clarity.
Loan Repayments
Groundfloor recorded 62 loan repayments in September. A total of 710 loans have been paid year to date.
Notwithstanding the continued economic challenges, ongoing asset management efforts have contributed to stability in loan repayment activity. Despite factors such as inflation, rising interest rates, and borrower struggles, the performance rates for loan repayments have remained consistent. This positive trend is encouraging as we near the final quarter of the year.
Below is a monthly breakdown of the loans repaid and repayment volume to date in 2023:
Repayment & Interest Volume
The repayment volume for the month of September saw a total of $15,854,530. Interest volume for September returned $1,453,520.
Rate of Return
During the month of September, the rate of return was 10.57%. Groundfloor continues to uphold an impressive overall rate-of-return of 9.83%, signifying sustained strength and performance over an extended period.
Loss Ratio
In September, Groundfloor encountered only 2 losses, resulting in a loss rate of 0.51%. The year-to-date average loss ratio stands at 0.91%. Groundfloor maintains an impressively low overall historical loss rate of 0.45%.
Further Detail
Groundfloor identifies three distinct loan states within our portfolio: Current, Extended, and Default. The charts below offer a month-over-month depiction of repayments from all loan portfolio states year-to-date. Losses are reflected within the default loan state.
Lastly, we present a full view into our overall loan portfolio, broken out into expanded detail for your assessment.
What We’re Seeing
The Groundfloor Asset Management team is working with borrowers to keep their projects moving in the right direction. The below highlights some team adjustments as well as some observations we are seeing in the marketplace:
- Improved on time repayment rates due to Groundfloor investment in Asset Management staff focused on early engagement with borrowers
- The housing market remains incrementally complex since the pandemic. With uncertainty surrounding home prices, fluctuating mortgage rates, and shortages of inventory throughout the country, Groundfloor remains committed to working with borrowers to provide support and guidance where needed.
- Draw requests remain elevated compared to previous periods which continues to reflect strong borrower activity, especially amongst new construction loans.
Highlights from the Month
Here are some of the notable loan achievements from last month:
748 Capitol Ave
- The loan matured in August 2022.
- The loan was placed in Default and foreclosure began in December 2022.
- Borrower was able to successfully secure a contract for sale.
- Borrower successfully sold the property and investors were repaid their full principal plus interest.
0 Melvabrook
- This loan matured in May 2022.
- Borrower became unresponsive for a period of time.
- Groundfloor moved the file to Default and referred to foreclosure in December 2022.
- The borrower was able to repay the loan with principal and interest prior to the foreclosure sale date.
September Project Spotlights
We're highlighting some of the properties that were repaid last month and showcasing their before-and-after outcomes in the section below.
858 Thurmond Street NW, Atlanta, GA
(New Construction)
Property Purchased For: $135,000
Total Loan Amount: $357,790
Term: 18 months
Repaid Date: September 1, 2023
509 Hoke Okelly Mill Rd, Loganville, GA
(New Construction)
Total Loan Amount: $422,440
Term: 18 months
Repaid Date: September 15, 2023
Sold for: $675,000
1461 Lively Ridge Rd NE, Atlanta, GA
(Refinance - Cash Out)
Property Purchased For: $370,000
Total Loan Amount: $469,120
Term: 12 months
Repaid Date: September 18, 2023
Sold for: $800,000
Review your Groundfloor Investor Account
To review your current portfolio's performance, and discover and invest in new LRO's, please visit your Investor Account here.
Further Reading:
- Take a look at our latest Diversification Analysis report
- Read our recently published Asset Management Supplement
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