| Schedule of Securities Available for Sale |
The following is a summary of the Company’s real estate-related securities and other as of September 30, 2025 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Real Estate-Related Securities and Other | | | | | Gross Unrealized | | | | | | | Amortized Cost Basis | | Gains | | Losses | | CECL | | Fair Value | | CMBS | | $ | 383,536 | | | $ | 210 | | | $ | (12,246) | | | $ | (182,989) | | | $ | 188,511 | | CLO subordinated note | | 27,426 | | | — | | | (5,696) | | | — | | | 21,730 | | Equity securities | | 58,447 | | | — | | | (22,629) | | | — | | | 35,818 | | | | | | | | | | | | | Total real estate-related securities and other | | $ | 469,409 | | | $ | 210 | | | $ | (40,571) | | | $ | (182,989) | | | $ | 246,059 | |
The following table provides the activity for the real estate-related securities and other during the nine months ended September 30, 2025 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Amortized Cost Basis | | Unrealized (Loss) Gain | | CECL | | Fair Value | Real estate-related securities and other as of January 1, 2025 | | $ | 568,432 | | | $ | (112,542) | | | $ | (110,062) | | | $ | 345,828 | | | Face value of real estate-related securities acquired | | 4,600 | | | — | | | — | | | 4,600 | | | | | | | | | | | | | | | | | | | | Discounts on purchase of real estate-related securities, net of acquisition costs | | (3) | | | — | | | — | | | (3) | | | | | | | | | | | Accretion of discount on real estate-related securities | | 1,264 | | | — | | | — | | | 1,264 | | Accretion of interest income on CLO subordinated note | | 3,050 | | | — | | | — | | | 3,050 | | Sale of real estate-related securities | | (61,251) | | | 340 | | | — | | | (60,911) | | | Capitalized interest income on real estate-related securities | | 945 | | | — | | | — | | | 945 | | Principal payments received on real estate-related securities | | (42,786) | | | — | | | — | | | (42,786) | | Proceeds from the repayment on the CLO subordinated note | | (4,842) | | | — | | | — | | | (4,842) | | Unrealized gains on real estate-related securities and other, net | | — | | | 819 | | | — | | | 819 | | Unrealized loss reclassified to CECL | | — | | | 71,022 | | | — | | | 71,022 | | Provision for credit losses | | — | | | — | | | (72,927) | | | (72,927) | | Real estate-related securities and other as of September 30, 2025 | | $ | 469,409 | | | $ | (40,361) | | | $ | (182,989) | | | $ | 246,059 | |
The scheduled maturities of the Company’s CMBS and CLO subordinated note as of September 30, 2025 are as follows (in thousands): | | | | | | | | | | | | | | | | | CMBS and CLO Subordinated Note | | | Amortized Cost | | Estimated Fair Value | | Due within one year | | $ | 305,824 | | | $ | 123,023 | | | Due after one year through five years | | 29,473 | | | 29,456 | | | Due after five years through ten years | | 14,663 | | | 11,177 | | | Due after ten years | | 61,002 | | | 46,585 | | | Total | | $ | 410,962 | | | $ | 210,241 | |
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| Schedule of Current Expected Credit Loss |
The following table presents the activity in the Company’s current expected credit losses related to its positions in two different tranches of a CMBS instrument for the nine months ended September 30, 2025 and 2024 (in thousands): | | | | | | | CMBS | Current expected credit losses as of January 1, 2025 | $ | 110,062 | | Provision for credit losses | 72,266 | | Current expected credit losses as of March 31, 2025 | 182,328 | | Provision for credit losses | 959 | | Current expected credit losses as of June 30, 2025 | 183,287 | | Reversal of credit losses | (298) | | Current expected credit losses as of September 30, 2025 | $ | 182,989 | | | | | |
| | | | | | | CMBS | Current expected credit losses as of January 1, 2024 | $ | 35,808 | | Reversal of credit losses | (246) | | Current expected credit losses as of March 31, 2024 | 35,562 | | Provision for credit losses | 4,529 | | Current expected credit losses as of June 30, 2024 | 40,091 | | Provision for credit losses | 47,141 | | Current expected credit losses as of September 30, 2024 | $ | 87,232 | | | | | |
The Company’s loans held-for-investment consisted of the following as of September 30, 2025 and December 31, 2024 (in thousands): | | | | | | | | | | | | | | | | | As of September 30, | | As of December 31, | | | 2025 | | 2024 | | | | | | First mortgage loans (1) | | $ | 3,129,218 | | | $ | 3,466,929 | | | Total CRE loans held-for-investment and related receivables, net | | 3,129,218 | | | 3,466,929 | | | Liquid corporate senior loans | | 29,389 | | | 41,467 | | | Corporate senior loans | | 337,375 | | | 254,617 | | | Loans held-for-investment and related receivables, net | | $ | 3,495,982 | | | $ | 3,763,013 | | | | | | | | Less: Current expected credit losses | | $ | (301,903) | | | $ | (392,136) | | | Total loans held-for-investment and related receivables, net | | $ | 3,194,079 | | | $ | 3,370,877 | |
____________________________________ (1) As of September 30, 2025 and December 31, 2024, first mortgage loans included $19.0 million of contiguous mezzanine loan components that, as a whole, have expected credit quality similar to that of a first mortgage loan. The following table details overall statistics for the Company’s loans held-for-investment as of September 30, 2025 and December 31, 2024 (dollar amounts in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | CRE Loans (1) (2) | | Liquid Corporate Senior Loans | | Corporate Senior Loans | | September 30, 2025 | | December 31, 2024 | | September 30, 2025 | | December 31, 2024 | | September 30, 2025 | | December 31, 2024 | | Number of loans | 33 | | | 33 | | | 10 | | | 15 | | | 33 | | | 20 | | | Principal balance | $ | 3,142,133 | | | $ | 3,483,454 | | | $ | 29,911 | | | $ | 42,717 | | | $ | 342,073 | | | $ | 258,816 | | | Net book value | $ | 2,838,179 | | | $ | 3,085,104 | | | $ | 24,204 | | | $ | 35,653 | | | $ | 331,696 | | | $ | 250,120 | | Weighted-average interest rate (3) | 7.3 | % | | 7.7 | % | | 10.2 | % | | 9.9 | % | | 10.0 | % | | 10.5 | % | Weighted-average maximum years to maturity | 2.1 | | 2.3 | | 3.2 | | 3.7 | | 3.1 | | 3.5 | Unfunded loan commitments (4) | $ | 135,435 | | | $ | 217,907 | | | $ | — | | | $ | — | | | $ | 48,627 | | | $ | 43,750 | |
____________________________________ (1)As of September 30, 2025, 90.6% of the Company’s CRE loans by principal balance earned a floating rate of interest primarily indexed to the Secured Overnight Financing Rate (“SOFR”). (2)Maximum maturity date assumes all extension options are exercised by the borrowers and assumes all relevant conditions are met for such extensions; however, the loans may be repaid prior to such date. (3)The weighted-average interest rate is based on the relevant fixed rate or floating benchmark plus a spread. Excludes loans on nonaccrual status. (4)Unfunded loan commitments are subject to the satisfaction of borrower milestones and are not reflected in the accompanying condensed consolidated balance sheets. Activity relating to the Company’s loans held-for-investment portfolio was as follows for the nine months ended September 30, 2025 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | CRE Loans | | Liquid Corporate Senior Loans | Corporate Senior Loans | | Total Loan Portfolio | Balance, January 1, 2025 | $ | 3,085,104 | | | $ | 35,653 | | | $ | 250,120 | | | $ | 3,370,877 | | Loan originations, acquisitions and funding | 265,628 | | | 1,282 | | | 99,095 | | | 366,005 | | Sale of loans | — | | | (5,275) | | | — | | | (5,275) | | Principal repayments received | (380,865) | | | (5,023) | | | (15,978) | | | (401,866) | | Transfer to real estate assets (1) | (149,439) | | | — | | | — | | | (149,439) | | | Capitalized interest | 11,972 | | | 19 | | | 140 | | | 12,131 | | | | | | | | | | Write-offs charged (2) | (87,475) | | | (3,371) | | | — | | | (90,846) | | Deferred fees and other items (3) | (4,371) | | | (30) | | | (1,873) | | | (6,274) | | | Accretion and amortization of fees and other items | 6,839 | | | 320 | | | 1,374 | | | 8,533 | | Reversal of (provision for) credit losses (4) | 90,786 | | | 629 | | | (1,182) | | | 90,233 | | Balance, September 30, 2025 | $ | 2,838,179 | | | $ | 24,204 | | | $ | 331,696 | | | $ | 3,194,079 | |
____________________________________ (1)During the nine months ended September 30, 2025, the Company took control of the assets securing two of its risk-rated 5 first mortgage loans through deeds-in-lieu of foreclosure, as further discussed in Note 4 — Real Estate Assets. (2)Includes a combined $87.5 million write-off on the two first mortgage loans transferred to real estate assets as noted above and a $3.4 million write-off on three liquid corporate senior loans sold during the nine months ended September 30, 2025. (3)Other items primarily consist of purchase discounts or premiums and deferred origination expenses. (4)Does not include current expected losses for unfunded or unsettled loan commitments. Such amounts are included in accrued expenses and accounts payable on the accompanying condensed consolidated balance sheets. As of September 30, 2025, the Company’s CRE loans had the following characteristics based on carrying value (dollar amounts in thousands): | | | | | | | | | | | | | | | Collateral Property Type | | As of September 30, 2025 | Office | | $ | 1,576,421 | | | 50.5 | % | | Multifamily | | 867,362 | | | 27.7 | % | | Industrial | | 345,272 | | | 11.0 | % | | Hospitality | | 193,625 | | | 6.2 | % | | Mixed Use | | 85,642 | | | 2.7 | % | | | | | | | Self-Storage | | 60,896 | | | 1.9 | % | Total first mortgage loans | | $ | 3,129,218 | | | 100 | % | Less: current expected credit losses | | (291,039) | | | | Total first mortgage loans, net | | $ | 2,838,179 | | | |
| | | | | | | | | | | | | | | Geographic Location | | As of September 30, 2025 | South | | $ | 1,295,686 | | | 41.4 | % | West | | 905,734 | | | 28.9 | % | East | | 637,084 | | | 20.4 | % | Various | | 290,714 | | | 9.3 | % | Total first mortgage loans | | $ | 3,129,218 | | | 100 | % | Less: current expected credit losses | | (291,039) | | | | Total first mortgage loans, net | | $ | 2,838,179 | | | |
The following table presents the activity in the Company’s current expected credit losses related to loans held-for-investment by loan type for the nine months ended September 30, 2025 and 2024 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | First Mortgage Loans | | | | Unfunded First Mortgage Loans (1) | | | | Liquid Corporate Senior Loans | | Unfunded or Unsettled Liquid Corporate Senior Loans (1) | | Corporate Senior Loans | | Unfunded Corporate Senior Loans (1) | | Total | Current expected credit losses as of January 1, 2025 | | | | $ | 381,825 | | | | | $ | 13,917 | | | | | $ | 5,814 | | | $ | — | | | $ | 4,497 | | | $ | 677 | | | $ | 406,730 | | | (Reversal of) provision for credit losses | | | | (11,922) | | | | | 5,486 | | | | | (2) | | | — | | | 260 | | | (63) | | | (6,241) | | | Charge-offs of CECL | | | | (87,475) | | | | | — | | | | | (3,371) | | | — | | | — | | | — | | | (90,846) | | Current expected credit losses as of March 31, 2025 | | | | $ | 282,428 | | | | | $ | 19,403 | | | | | $ | 2,441 | | | $ | — | | | $ | 4,757 | | | $ | 614 | | | $ | 309,643 | | | Provision for (reversal of) credit losses | | | | 4,240 | | | | | (838) | | | | | 305 | | | — | | | 577 | | | (42) | | | 4,242 | | | | | | | | | | | | | | | | | | | | | | | Current expected credit losses as of June 30, 2025 | | | | $ | 286,668 | | | | | $ | 18,565 | | | | | $ | 2,746 | | | $ | — | | | $ | 5,334 | | | $ | 572 | | | $ | 313,885 | | Provision for (reversal of) credit losses | | | | 4,371 | | | | | (694) | | | | | 2,439 | | | — | | | 345 | | | 282 | | | 6,743 | | | | | | | | | | | | | | | | | | | | | | | Current expected credit losses as of September 30, 2025 | | | | $ | 291,039 | | | | | $ | 17,871 | | | | | $ | 5,185 | | | $ | — | | | $ | 5,679 | | | $ | 854 | | | $ | 320,628 | | | | | | | | | | | | | | | | | | | | | | | Current expected credit losses as of January 1, 2024 | | | | $ | 109,240 | | | | | $ | 10,062 | | | | | $ | 19,738 | | | $ | 3 | | | $ | 3,620 | | | $ | 495 | | | $ | 143,158 | | | Provision for (reversal of) credit losses | | | | 77,564 | | | | | (6,653) | | | | | (3,719) | | | (1) | | | 249 | | | (78) | | | 67,362 | | | Charge-offs of CECL | | | | — | | | | | — | | | | | (1,649) | | | — | | | — | | | — | | | (1,649) | | Current expected credit losses as of March 31, 2024 | | | | $ | 186,804 | | | | | $ | 3,409 | | | | | $ | 14,370 | | | $ | 2 | | | $ | 3,869 | | | $ | 417 | | | $ | 208,871 | | | Provision for (reversal of) credit losses | | | | 211,485 | | | | | 7,197 | | | | | (5,963) | | | (1) | | | (335) | | | (13) | | | 212,370 | | | Charge-offs of CECL | | | | — | | | | | — | | | | | (480) | | | — | | | — | | | — | | | (480) | | Current expected credit losses as of June 30, 2024 | | | | $ | 398,289 | | | | | $ | 10,606 | | | | | $ | 7,927 | | | $ | 1 | | | $ | 3,534 | | | $ | 404 | | | $ | 420,761 | | (Reversal of) provision for credit losses | | | | (24,304) | | | | | 5,029 | | | | | (4,050) | | | (1) | | | 595 | | | 117 | | | (22,614) | | | Charge-offs of CECL | | | | — | | | | | — | | | | | (2,860) | | | — | | | — | | | — | | | (2,860) | | Current expected credit losses as of September 30, 2024 | | | | $ | 373,985 | | | | | $ | 15,635 | | | | | $ | 1,017 | | | $ | — | | | $ | 4,129 | | | $ | 521 | | | $ | 395,287 | |
____________________________________ (1)Current expected losses for unfunded or unsettled loan commitments are included in accrued expenses and accounts payable on the condensed consolidated balance sheets.
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