v3.25.3
FAIR VALUE MEASUREMENTS (Tables)
 9 Months Ended
Sep. 30, 2025
Fair Value Disclosures [Abstract]  
Schedule of Net Book Value and Fair Value
In accordance with the fair value hierarchy described above, the following table details the net book value and fair value of the financial instruments described above as of September 30, 2025 and December 31, 2024 (in thousands):
September 30, 2025December 31, 2024
Net Book Value
Fair Value
Net Book ValueFair Value
Level
Financial assets:
First mortgage loans
$2,838,179 $2,890,687 $3,085,104 $3,141,665 3
Liquid corporate senior loans
24,204 21,186 35,653 32,062 (1)
Corporate senior loans
331,696 335,712 250,120 256,543 3
Total financial assets
$3,194,079 $3,247,585 $3,370,877 $3,430,270 
Financial liabilities:
Repurchase facilities, notes payable and credit facilities
$2,980,188 $2,927,052 $3,182,614 $3,098,368 2
Total financial liabilities
$2,980,188 $2,927,052 $3,182,614 $3,098,368 
____________________________________
(1)As of September 30, 2025, $17.0 million and $4.2 million of the Company’s liquid corporate senior loans were classified in Level 2 and Level 3 of the fair value hierarchy, respectively. As of December 31, 2024, $26.0 million and $6.1 million of the Company’s liquid corporate senior loans were classified in Level 2 and Level 3 of the fair value hierarchy, respectively.
Schedule of Fair Value, Assets and Liabilities Measured on a Recurring Basis
In accordance with the fair value hierarchy described above, the following tables show the fair value of the Company’s financial assets that are required to be measured at fair value on a recurring basis as of September 30, 2025 and December 31, 2024 (in thousands):
Balance as of
September 30, 2025		Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Financial assets:
CMBS$188,511 $— $142,685 $45,826 
CLO subordinated note
21,730 — — 21,730 
Equity securities
35,818 35,134 — 684 
Total financial assets$246,059 $35,134 $142,685 $68,240 
  
Balance as of December 31, 2024Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Financial assets:
CMBS$286,757 $— $241,341 $45,416 
CLO subordinated note26,901 — — 26,901 
Equity securities
32,170 31,547 — 623 
Total financial assets
$345,828 $31,547 $241,341 $72,940 
Reconciliation of the Changes in Liabilities With Level 3 Inputs
The following are reconciliations of the changes in financial assets with Level 3 inputs in the fair value hierarchy for the nine months ended September 30, 2025 (in thousands):
Level 3
Beginning Balance, January 1, 2025
$72,940 
Total gains and losses:
Unrealized gain included in other comprehensive (loss) income
476 
Current expected credit losses
(1,905)
Unrealized loss on CLO subordinated note
(3,379)
Purchases and payments received:
Proceeds from the repayment on the CLO subordinated note
(4,842)
Accreted interest income
3,050 
Discounts, net955 
Capitalized interest income945 
Ending Balance, September 30, 2025
$68,240 
Summary of Discount Rates and Terminal Capitalization rates of the Company’s Impairment Test
The following summarizes the ranges of discount rates and terminal capitalization rates used for the Company’s impairment test for the real estate assets during the nine months ended September 30, 2025 and 2024:
Nine Months Ended September 30,
20252024
Discount Rate
Terminal Capitalization Rate
Discount RateTerminal Capitalization Rate
9.5% - 11.9%
9.0% - 13.3%
8.6% - 11.0%
8.1% - 9.5%
Schedule of Impairment Charges by Asset Class
The following table presents the impairment charges by asset class recorded during the nine months ended September 30, 2025 and 2024 (in thousands):
Nine Months Ended September 30,
20252024
Asset class impaired:
Land$700 $8,184 
Buildings, fixtures and improvements6,347 39,372 
Intangible lease assets627 3,917 
Intangible lease liabilities— 5 
Condominium developments— 8,940 
Total impairment loss$7,674 $60,418