Wed, May 15, 9:19 PM (305 days ago)
Redwood Mortgage Investors IX, LLC (RMI IX) reported a net income of $645,000 for Q1 2024, down from $848,000 in Q1 2023, primarily due to increased operational expenses. Interest income decreased by $115,000 due to a reduction in the average daily balance of secured loans, despite a 1% increase in the portfolio interest rate. Interest expense dropped significantly due to a lower average daily balance on the line of credit. The secured loan portfolio had a principal balance of $61 million at the end of Q1 2024, with a weighted average loan-to-value (LTV) ratio of 54.4%. The company maintained substantial protective equity in its loan portfolio. Cash flow from operations was positive, but the company experienced net cash outflows from financing activities due to member redemptions and line of credit repayments. The company’s liquidity is supported by loan payoffs, borrower payments, line of credit advances, and DRIP unit sales. The manager, Redwood Mortgage Corp., continues to waive some reimbursable costs, enhancing net income and cash distributions. The company’s primary risks include changes in economic conditions, interest rates, and the California real estate market.