InPoint Reports 2024 Financials
The commercial real estate lender adjusts portfolio amid economic uncertainty.
March 18, 2025
InPoint Commercial Real Estate Income, Inc. has released its annual report for 2024, outlining its financial performance, portfolio activity, and strategic direction in a turbulent market. Rising interest rates, shifting property valuations, and borrower stress created challenges over the past year, prompting InPoint to adjust its approach while managing liquidity and risk.
Portfolio Updates and Market Adjustments
At the close of 2024, InPoint’s investment portfolio stood at $549.2 million, down from $722.0 million the previous year. The decline reflects loan payoffs, strategic asset sales, and broader market-driven shifts. Over the course of the year, InPoint took ownership of three properties—two office buildings in Texas and a multifamily asset in Oregon—through foreclosure. These transactions highlight the ongoing strain in the commercial real estate sector, particularly in office markets where remote work and economic uncertainty continue to impact occupancy and valuations.
InPoint also sold the Renaissance Chicago O’Hare Suites Hotel , a 362-room property in Illinois, after taking possession via deed-in-lieu of foreclosure. The sale aligns with the company’s strategy to reposition its portfolio in response to market conditions.
Navigating Interest Rate Pressures
Higher borrowing costs have reshaped the lending environment. Floating-rate loans—a core component of InPoint’s portfolio—became more expensive for borrowers, increasing delinquency risk and leading to an uptick in loan modifications. At the same time, rising rates created challenges in financing new transactions, requiring the company to take a more selective approach to capital deployment.
The impact of these shifts extends beyond InPoint’s portfolio. Liquidity constraints and increased financing costs have created broader uncertainty across the commercial real estate market, affecting asset values and borrower performance.
Shareholder Liquidity and Repurchase Program Suspension
Liquidity remains a central concern for shareholders. InPoint’s share repurchase program (SRP), which provided a limited exit for investors, remains suspended after redemption requests outpaced new capital inflows. This suspension, alongside the halt of the company’s distribution reinvestment plan (DRP), reflects the broader capital market challenges facing non-traded REITs.
The company had previously raised funds through public offerings, but as of March 2025, $2.198 billion in common stock remains available for sale. InPoint has yet to resume fundraising, keeping a close watch on market conditions.
Strategic Focus and Risk Management
With economic uncertainty still in play, InPoint is focused on:
- Managing its existing portfolio
- Optimizing asset performance
- Assessing potential liquidity events
The company continues to monitor refinancing risks, shifts in property values, and evolving credit conditions as it evaluates its next steps.
Among the key risks flagged in the filing:
- Ongoing volatility in the commercial real estate market
- Limited access to capital
- Cybersecurity threats
The company’s external management structure—relying on an advisor and sub-advisor—also presents potential conflicts of interest, though oversight measures are in place.
Looking Ahead
InPoint’s 2024 results underscore the challenges commercial real estate lenders are facing in today’s higher-rate environment. The company is actively managing risk, but market conditions will continue to play a key role in shaping its next moves. Investors will be watching for any signs of improved liquidity, shifts in financing availability, and further clarity on the company’s long-term strategic plans.
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