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Overall delinquency is slightly improving.Early 2025: Many accounts were in severe delinquency (90+ days).By September: Fewer accounts in 90+ days; more in early stages (under 60 days).Indicates better short-term collections and earlier interventions.
Total write-offs: ~$389,700 across all sites.Huge spike in May ($127k) due to mass clean-up of old debt.Post-May: Write-offs dipped temporarily, but climbed again by August–September, signaling ongoing issues with newer delinquencies.
Alabama: Legal at ~55 daysLouisiana: ~60 daysMississippi: ~66 daysTexas: ~67 daysConnecticut: ~64 days
~$104,000 in bad debt across the portfolio (~30% of total write-offs)Largest savings by state:Texas: $42kAlabama: $32kMississippi: $18k
Reduce bad debt significantlyPrevent tenants from aging into 90+ day delinquencyCreate a more consistent and leaner collections processIn July, total delinquency was $54.7k, with $14.2k in the severe 91+ days bucket.In August, delinquency increased to $58.1k, driven by a spike in the 61–90 days bucket.By September, total delinquency fell slightly to $55.3k, and the 91+ bucket stayed relatively low at $13.0k (well below the April peak of $30.5k).
251117 Delinquency & Bad Debt Analysis
📊 Delinquency & Bad Debt Summary (Radiant Portfolio, Jan–Sep 2025)
✅ Delinquency Trends
💸 Bad Debt Write-Offs
🕒 Auction Timing Impact
Radiant often waits ~90 days to auction units. Legal state minimums are much shorter:
💡 What Could Be Saved
If Radiant had auctioned units at state minimum legal times, it could have saved:
📌 Key Takeaway
Accelerating auctions to state-minimum timelines would:
Delinquency improved after July in terms of severity:
So while the total dollar amount fluctuated, the most severe delinquencies (91+ days) stayed contained, suggesting continued improvement in managing delinquent accounts.
Delinquency by Days Past Due Buckets
Across all Radiant Storage sites, delinquent accounts were analyzed in four aging buckets: 11–30 days, 31–60 days, 61–90 days, and 91+ days past due. Early in the year (January 2025), total portfolio delinquency was about $49.2k, with a significant portion (34%) already in the 61–90 day bucket and ~29% in the 91+ bucket【21†】. By September 2025, total delinquency had risen slightly to $55.3k, but its composition shifted toward newer delinquencies – 41% in the 31–60 day bucket and only 23% in 91+【21†】【22†】. This indicates fewer accounts reaching severe delinquency (90+ days) by late Q3.
To illustrate, in January the portfolio had roughly $14.2k in 91+ days delinquent balances (the oldest debts)【22†】. After peaking around $30k in April (signaling a backlog of severely past-due accounts)【22†】, the 91+ bucket was dramatically reduced. Following a major cleanup in May (discussed below), June saw 91+ balances drop to just $2.5k【22†】. Although some accounts again aged into 91+ by the end of Q3 (~$13k in September)【22†】, this level remained slightly below January’s and far below the April peak. Meanwhile, mid-range delinquencies (31–60 days) grew by Q3 (from ~$8.2k in Jan to ~$23.0k in Sept)【22†】. The 61–90 day category shrank markedly (from ~$16.6k in Jan down to ~$4.8k in Sept)【22†】, showing that many delinquencies were either resolved or prevented from aging further. Overall, delinquency has modestly improved in severity – with a greater share of overdue balances now in earlier stages (under 60 days) rather than in very late-stage status.
Bad Debt Write-Off Trends
Bad debt write-offs (uncollectible amounts removed from the books) fluctuated significantly over the period. Early 2025 saw monthly write-offs in the ~$25–35k range (e.g. $35.0k in January, $25.4k in February across all sites)【22†】. In April, write-offs ticked up to $34.6k【22†】, but it was May that saw a dramatic spike – a $126.97k write-off total【22†】, by far the highest of any month. This May spike corresponds to a major purge of delinquent accounts, likely through auctions or bulk write-off of severely delinquent balances that had accumulated (reflected in the large 91+ bucket in April). Indeed, two Texas facilities (Beaumont locations that left the portfolio after May) alone contributed over $45k of May’s write-offs, and several other sites across Texas, Mississippi, and Alabama also had substantial write-offs in that month. After this one-time cleanup, June’s write-offs dropped to just $18.0k – the lowest of the year【22†】, indicating a period of healthier receivables post-purge.
Through the summer, however, bad debt creeped up again: July saw ~$23.0k, and by August–September write-offs were back in the low $33k range【22†】, comparable to January levels. This late uptick suggests that while the spring cleanup eliminated old balances, new delinquencies emerged by Q3 that required write-off/auction. On a positive note, those new write-offs were generally on accounts that had not aged as severely as the pre-May backlog – hence the 91+ delinquency remained contained relative to earlier in the year. In summary, delinquency levels show slight improvement over time (fewer extreme past-dues after mid-year), though the rising write-offs in Aug–Sep indicate continuous focus is needed to sustain improvements.
State-by-State Auction Timeline Analysis
The Radiant portfolio spans five states (CT, AL, TX, MS, LA), each with different minimum legal timelines for lien enforcement (auctions) on defaulted units. Historically, it appears Radiant was allowing delinquencies to reach ~90 days (or more) before auction in many cases (as evidenced by accounts entering the 91+ day bucket). Below we compare an approximate current practice (~90-day auctions) with the earliest permissible auction timing in each state, and estimate bad debt savings if auctions had occurred at those minimum timeframes:
Table 1
State
Approx. Current Auction Timing (Days Past Due)
Legal Earliest Auction (Days Past Due)¹
Jan–Sep 2025 Bad Debt Write-offs ($)
Est. Bad Debt if Auction at Earliest ($)
Projected Savings ($)
Alabama
~90 days (current)
$82,941【48†】
~$50,686
$32,300 (≈39% less)
Mississippi
~90 days
66 days (min.)【28†】
$67,465【48†】
~$49,474
$17,991 (≈27% less)
Texas
~90 days
$165,212【48†】
~$123,0<span/><span/><span/><span/><span/><span/></span> 〖Oops formatting issue〗<span/>$42,200 (≈25% less)
Connecticut
~90 days
$15,469【48†】
~$10,999
$4,470 (≈29% less)
There are no rows in this table
<small>1. Legal Earliest Auction = The minimum delinquency age at which a lien sale can occur per state law (including required default periods and notice/advertising lead times). E.g. Alabama law allows auction after 30 days default + 20-day notice + 7-day ad (~57 days); Radiant’s Alabama process timeline is ~55 days in practice. Louisiana requires at least 10 days after lien notice and 10 days after ad, enabling auctions ~60 days after default. Mississippi’s law mandates a 45-day default period and 14-day notice period, plus ~15 days after publication (~66 days total)【28†】. Texas requires two newspaper notices and at least 15 days after the first ad (≈67 days minimum). Connecticut requires a 60-day default before sale, plus ~10 days after first ad (~70 days), though Radiant’s timeline targets ~64 days.</small>
In every state, Radiant could have accelerated its auction timeline to the legal minimum, which would cut off tenants earlier and prevent additional months of unpaid rent from accruing. The table above shows the projected impact: portfolio-wide, bad debt write-offs might have been ~$100k (30%) lower if units were auctioned as soon as legally allowed. For example, in Alabama, current practice was to wait ~90+ days, but auctions can legally occur in ~55 days of delinquency. By eliminating those extra ~35 days of non-payment, Alabama sites (Tuscaloosa and Montgomery, which had the highest individual write-offs) could have saved an estimated $32k in bad debt (nearly 40% of AL’s $83k write-offs)【48†】. Mississippi (default allowed at ~66 days) similarly could have avoided roughly $18k in write-offs – Pascagoula, the worst MS site, saw over $33k written off YTD, much of which accrued after the 66-day mark. Texas, which contributed the largest absolute bad debt (~$165k across several sites), has a ~67-day legal timeline; using it might have saved about $42k. Notably, two Texas facilities that were sold in May had to write off ~$50k of 90+ day delinquencies – losses that might have been mitigated by earlier auctions. Louisiana sites (Quinn Dr. and Sullivan Rd.) had relatively lower delinquencies ( ~$22.6k written off) but still could cut roughly $7.5k by using a 60-day auction cycle. Connecticut (Norwich) had the smallest issue (~$15k bad debt) given one site, but even there about $4.5k might be saved by adhering to the ~64-day state minimum instead of ~90 days.
Insight: Transitioning to the optimized, state-specific lien timelines would not only reduce bad debt but also improve the delinquency profile. Fewer tenants would roll into the 91+ day bucket, and the need for large periodic write-offs would diminish. The mid-year improvement seen after Radiant’s one-time purge could be sustained by consistently auctioning units as soon as legally permissible. In practice, this means tightening internal processes (e.g. sending lien notices and advertisements promptly at the state-required intervals) to achieve auctions around 55–67 days past due depending on jurisdiction, instead of waiting ~3 months. By doing so, delinquency rates should improve over time – with chronic defaulters cleared out earlier and less revenue lost to bad debt. The projected savings above (e.g. ~25–40% reduction in write-offs per state) underscore a significant financial upside to more aggressive, state-optimized auction scheduling.
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