Dear Partners,

Please find below an overview of the fund’s performance year-to-date, portfolio highlights, and market thoughts.

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Learn more about the fund

Performance

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• The fund had a Year-to-Date net return of 45.72% through November 2024

Net P/L Performance by Month Breakdown

Jan 2024
-1.21%

Feb 2024
2.85%

Mar 2024
6.59%

Apr 2024
3.38%

May 2024
5.84%

Jun 2024
5.78%

Jul 2024
4.68%

Aug 2024
3.83%

Sep 2024
0.06%

Oct 2024
2.69%

Nov 2024
4.11%

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YTD
45.72%

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Fund News

• January Distribution: The fund will issue an 8% distribution in January 2025. We will contact all investors via email to confirm whether they prefer to receive the distribution or reinvest it.
• Quarterly Distributions: Beginning in 2025, the fund will move to quarterly discretionary distributions, subject to performance and liquidity conditions.

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Portfolio Insights and Highlights

In October and November, the fund made three investments:

1. Acquisition of a Judgment Lien: Acquired the fund's first judgment lien, secured by a ~20,000 sqft shopping center. This investment represents a significant value opportunity, with an estimated 38% loan-to-value (LTV). Ex. UPB of loan is $1mm and we estimate the value of the property at $2.63mm.
   
   
2. Origination of a Performing Loan: Originated a performing loan for a property that has already completed its rehabilitation. Currently at ~65% As-is LTV, expect the loan to be paid off before maturity.
3. Purchase of a Nonperforming Loan: Acquired a nonperforming loan backed by a commercial building. This loan was purchased at an estimated 50% LTV.

• Kyle recently posted an insightful Twitter thread, on how we’re using AI to source deals.
  
  

Market Thoughts

• For a more in-depth view of our thoughts on the current non-performing loan (NPL) market, please refer to our Q3 Update.
• We continue to see bank and non-bank lenders alike being put in a position where they either need to or are now incentivized to sell their non-performing loans at prices that were below the par price they’d been dreaming they’d one day get, especially into year end.
• In fact, the fund will likely end up acquiring an additional 2-3 loans in December as sellers look to offload before the new year. We will share more on these acquisitions and detailed updated thoughts in the Year End Fund Update!

Wishing you and your loved ones a happy, healthy, and prosperous New Year. Thank you for your continued partnership. We look forward to achieving even greater success together in the year ahead.

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Learn more about investing in the Constitution Real Estate Credit Fund

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Yours truly,
Ricardo, Kyle, and Joe

200 Pemberwick Road
Greenwich CT 06831

Invest@ConstLending.com
203-423-3534

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