InPoint Commercial Real Estate Income Cut Its Distribution 75%: $0.1042 to $0.026 a Month, NAV $13.69, Bank Hired to Find an Exit

What InPoint is, in one paragraph

InPoint is a commercial mortgage REIT sponsored by Inland: it makes short-term first-mortgage loans on commercial property and funds them partly with repurchase agreements. It raised most of its common equity in a private offering of Class P shares at $25.00 between 2016 and June 2019 (10,258,094 shares, $276.7 million gross, per its 10-K), then sold Class A, T, D and I shares in public offerings until the board suspended new sales on January 30, 2023; the second public offering formally ended on November 1, 2025. In 2021 it also sold 6.75% cumulative preferred stock at $25.00, which now trades on the NYSE. At March 12, 2026 it had 2,458 holders of Class P, 262 of Class A, 134 of Class T, 11 of Class D and 156 of Class I, about 3,021 in all (our sum). It publishes NAV monthly in an 8-K.

The cut, and the letter six weeks before it

Every monthly declaration from January 2025 through August 2026 was $0.1042 per share gross. On July 30, 2026 the company's letter to stockholders called that “an annualized yield of approximately 9.46%,” based on the June 30 Class P NAV of $13.22, and described resumed lending: three new loans of about $50 million in 2026 and three more of $57 million in progress. On September 11 the next letter cut it to $0.026.

The reason in the letter is the arithmetic in the filings. Common distributions were $12.6 million in 2025, and the company's own tables show how much of each period's payout operating cash flow covered:

The company's percentage counts only the common payout. The preferred comes first: 3,544,553 shares at $1.6875 a year, $2,991 thousand in each half. Against both, first-half 2026 operating cash flow covered about 46% (our arithmetic: $4,265K of $9,297K). At $0.026 a month the common payout is about $1.6 million a half-year on 10.12 million shares; with the preferred that is about $4.6 million, close to the $4.3 million of operating cash flow in the first half (our arithmetic). The cut stops the drain on cash; it does not build a cushion.

The distributions were already mostly a return of capital for tax purposes: 100% of 2025 common distributions and 99.3% of 2024's were “nondividend distributions,” which lower a holder's cost basis instead of being taxed as income (8-Ks of January 26, 2026 and January 27, 2025).

NAV, month by month

NAV fell in most months from mid-2025, with the largest steps in September 2025 (from $15.99 to $15.28) and December 2025 (from $15.16 to $14.13 as restated). Two months were restated by 8-K/A: March 2025 up from $15.8604 to $16.1342 (“to correct” the figures) and December 2025 down from $14.3519 to $14.1316 because of “additional information that became available” after the first filing.

August 2026 is the outlier: NAV per share rose 4.3% to $13.6882 (our arithmetic), the same month that real estate owned in the NAV table rose from $96.1 million to $153.6 million and cash fell from $76.1 million to $21.4 million. The 8-K gives the numbers but does not say what was acquired or why NAV rose; the third-quarter 10-Q, due in November, should.

Credit: what the June 10-Q shows

• Loans: 14 loans with $313.3 million of principal at June 30, 2026 (15 and $350.7 million at December 31, 2025), weighted average remaining term 0.6 years. The July letter says multifamily is about 77% of loans.
• Risk ratings: at June 30, 2026, seven loans rated 2, two rated 3, three rated 4 and two rated 5; at December 31, 2025 none was rated 5. A 5 means “expected loss of interest and some principal.”
• Past maturity: two loans “exceeded their maturity dates and had not been refinanced or paid off.” One, on an office property, matured February 9, 2026; the company sent a default notice, began foreclosure and reserved $1,505 thousand. Another, $24,946 thousand on a multifamily property in Converse, Texas, matured May 9, 2026.
• Reserves and results: the loan loss allowance rose from $3,930 thousand to $9,618 thousand; the half included a $5,728 thousand credit-loss provision and a $2,481 thousand impairment on real estate owned, for a net loss to common stockholders of $9,617 thousand, $0.95 a share (income of $0.40 a share a year earlier). No loans were on nonaccrual.

What a holder can do with this

• Expect $0.026 a month from the October 19 payment, unless the board changes it again. Class D and T receive less after servicing fees.
• There is no buyback. The share repurchase plan has been suspended since January 30, 2023 and remains so “unless and until such time as the Board approves” its resumption (10-Q). The common shares are not listed.
• The exit is now the strategic review. The September 11 letter lists “strategic transactions, portfolio-level solutions, or potentially other initiatives.” Any sale or merger would pay the preferred (about $88.6 million of liquidation value at $25.00 a share, our arithmetic) before common holders.
• Watch the November 10-Q for what happened in August, how the two loans rated 5 resolve, and whether the investment bank has been named.
• Taxes: if your distributions were nondividend, your cost basis is lower than what you paid; keep the Form 1099-DIV boxes for any later sale or liquidation.

Other Inland vehicles and commercial-mortgage REITs on this site: Inland Real Estate Income Trust, Goldman Sachs Real Estate Finance Trust and CIM Real Estate Finance Trust. For what a holder trapped without a repurchase plan can ask for, see the stockholder-rights section of our Summit Healthcare REIT review.

FAQ

All figures are from InPoint Commercial Real Estate Income, Inc.'s SEC filings read on EDGAR on October 5, 2026: the monthly NAV 8-Ks from January 2025 to September 2026 and the 8-K/As of April 30, 2025 and January 23, 2026, the monthly distribution 8-Ks, the September 14, 2026 8-K with the letter to stockholders (Ex. 99.1), the July 30, 2026 8-K and letter, the Form 10-Q for June 30, 2026 (accession 0001690012-26-000009), the 2025 Form 10-K (accession 0001690012-26-000002), the tax-character 8-Ks of January 27, 2025 and January 26, 2026, and the September 21, 2026 annual-meeting 8-K. Percentage changes, yields, coverage including preferred dividends, run-rate distributions and holder totals are our arithmetic. This is analysis of public documents, not investment, legal or tax advice.