6.    Real Estate Owned (REO)

Property acquired through foreclosure are included on the Company’s consolidated balance sheets as real estate owned and further categorized as held for sale or held for rental, described in detail below.

As of June 30, 2024 and December 31, 2023, REO totaled $3.9 million and $3.5 million, respectively. For the three months ended June 30, 2024 and 2023, the Company recorded an impairment loss of 0.1 million and $0.2 million, respectively. For the six months ended June 30, 2024 and 2023, the Company recorded an impairment loss of $0.1 million and $0.2 million, respectively.

The following table presents the Company’s REO as of June 30, 2024 and December 31, 2023:

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As of June 30, 2024, REO included $0.8 million of real estate held for rental and $3.1 million of real estate held for sale. As of December 31, 2023, REO included $0.8 million of real estate held for rental and $2.7 million of real estate held for sale.

Properties Held for Sale

During the three months ended June 30, 2024, the Company sold ten properties held for sale and recognized a net gain of $0.3 million. During the six months ended June 30, 2024, the Company sold eleven properties held for sale and recognized a net gain of $0.3 million. During the three months ended June 30, 2023, the Company sold three properties held for sale and recognized a net loss of $0.02 million. During the six months ended June 30, 2023, the Company sold five properties held for sale and recognized a net gain of $0.1 million.

Properties Held for Rental

As of June 30, 2024, one property, a commercial building, was held for rental. The tenant signed a five-year lease that commenced on August 1, 2021.

As of June 30, 2024, future minimum rents under this lease were as follows:

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