During the nine months ended September 30, 2025, the Company acquired one multifamily property located in Kansas City, MO and one office property located in Charlotte, NC, through non-judicial foreclosure transactions. The properties previously collateralized two

senior loans. The acquisitions were accounted for as asset acquisitions under applicable GAAP guidance. The properties were recorded on the Company’s consolidated balance sheet based on the estimated fair value at acquisition. The Company’s fair market value estimate was determined based on appraisals performed by independent third-party appraisers.

The following table shows additional information about the acquisitions, including the fair value of the assumed assets and liabilities on the acquisition dates:


	Kansas City, MO		Charlotte, NC
Acquisition date	May 1, 2025		July 2, 2025
Number of properties	1		1
Property type	Multifamily		Office
Amortized cost basis of loan as of acquisition date	$	38,933	$	22,892
CECL reserve as of acquisition date	$	68	$	2,311
Loan risk rating as of acquisition date	5		5
CECL reserve charge-off upon acquisition	$	68	$	2,311

Land	$	1,778	$	6,620
Building and improvements		35,123		10,733
Furniture, fixtures and equipment		1,185		—
Acquired in-place lease value		773		2,866
Acquired above-market lease value		—		231
Acquired below-market lease value		—		(325	)
Total	$	38,859	$	20,125

The Company recognized a net gain of $531 upon the foreclosure transactions, which represents total assets received, net of liabilities assumed, less carrying value of loans adjusted for interest, extension fee and CECL reserve. The net gain is reported on the accompanying consolidated statements of operations within net realized (loss) gain on disposition of commercial loans.

On July 14, 2025, the Company entered into a contract for sale of the Kansas City property for a purchase price of $40,100 and received $780 earnest money in escrow from the buyer on July 18, 2025. The buyer subsequently determined not to proceed with the transaction, resulting in termination of the contract and return of the earnest money to the buyer.

During the year ended December 31, 2024, the Company acquired legal title to two office properties, one located in Addison, TX, and the other located in Irving, TX, and one multifamily property located in Portland, OR through non-judicial foreclosure transactions. The properties previously collateralized two senior loans. The acquisitions were accounted for as asset acquisitions under applicable GAAP guidance, and the Company intends to hold these properties as real estate held for use with the intent to eventually sell when the market improves. The properties were recorded on the Company’s consolidated balance sheet based on the estimated fair value at acquisition. The Company’s fair market value estimate was determined based on appraisals performed by independent third-party appraisers.

The following table shows additional information about the acquisitions, including the fair value of the assumed assets and liabilities on the acquisition dates:


	Addison and Irving, TX			Portland, OR
Acquisition date	July 2, 2024			October 23, 2024
Number of properties	2			1
Property type	Office			Multifamily
Amortized cost basis of loan as of acquisition date	$	24,411		$	29,476
CECL reserve as of acquisition date	$	281		$	9,884
Loan risk rating as of acquisition date	5			5
CECL reserve charge-off upon acquisition	$	855		$	9,577

Land	$	3,858		$	1,975
Building and improvements		17,071			16,989
Furniture, fixtures and equipment		—			343
Acquired in-place lease value		3,526			285
Acquired above-market lease value		31			—
Acquired below-market lease value		(451	)		—
Total	$	24,035		$	19,592

The following table presents the REO assets as of September 30, 2025 and December 31, 2024:


	September 30, 2025			December 31, 2024
Land	$	14,231		$	5,833
Building and improvements		80,065			34,122
Furniture, fixtures and equipment		1,667			343
Accumulated depreciation		(2,549	)		(665	)
Real estate owned, net	$	93,414		$	39,633

During the three and nine months ended September 30, 2025 the Company incurred $864 and $1,884 of depreciation expense, respectively. During both the three and nine months ended September 30, 2024 the Company incurred $282 of depreciation expense.

The following table summarizes the Company’s identified intangible assets and liabilities as of September 30, 2025 and December 31, 2024:


	September 30, 2025			December 31, 2024
Intangible assets:
Acquired in-place lease value	$	7,450		$	3,811
Acquired above-market lease value		262			31
Accumulated amortization		(3,056	)		(873	)
Acquired lease intangible assets, net	$	4,656		$	2,969
Intangible liabilities:
Acquired below-market lease value	$	776		$	451
Accumulated amortization		(137	)		(47	)
Acquired lease intangible liabilities, net	$	639		$	404

As of September 30, 2025, the remaining weighted-average amortization period for the acquired in-place lease intangibles of the properties acquired during the nine months ended September 30, 2025 was 4.1 years.

Amortization pertaining to acquired in-place lease value, above-market lease value and below-market lease value is summarized below:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2025			2024			2025			2024
Amortization recorded as amortization expense:
Acquired in-place lease value	$	960		$	374		$	2,149		$	374
Amortization recorded as a (reduction) increase to rental income:
Acquired above-market leases	$	(23	)	$	(5	)	$	(34	)	$	(5	)
Acquired below-market leases		42			24			90			24
Net rental income increase	$	19		$	19		$	56		$	19

Estimated amortization of the respective intangible lease assets and liabilities as of September 30, 2025 for each of the five succeeding years and thereafter is as follows:


	In-Place Leases		Above-Market Leases		Below-Market Leases
2025 (remainder of year)	$	526	$	20	$	41
2026		1,306		73		160
2027		1,058		61		153
2028		709		34		123
2029		373		9		88
Thereafter		466		21		74
Total	$	4,438	$	218	$	639

The table below presents the future minimum lease payments to be received under non-cancelable operating leases, excluding tenant reimbursements of expenses, and assuming no expiring leases are renewed, as of September 30, 2025. Leases for the multifamily properties are generally 12 months or less and are therefore excluded from the table below.


	Lease Payments
2025 (remainder of year)	$	1,122
2026		4,203
2027		3,701
2028		2,854
2029		1,963
Thereafter		3,109
Total	$	16,952