The following tables show a summary of the Company’s commercial mortgage loans held for investment as of December 31, 2025 and 2024:

December 31, 2025


Loan Type (1)	Number of Loans		Principal Balance		Unamortized (fees)/costs, net		Allowance for credit losses			Carrying Value		Weighted Average Interest Rate (2)			Weighted Average Years to Maturity (3)
First mortgage loans		14	$	343,175	$	1,148	$	(3,930	)	$	340,393		7.3	%		0.4
Credit loans		1		7,500		—		—			7,500		9.2	%		1.8
Total and average		15	$	350,675	$	1,148	$	(3,930	)	$	347,893		7.3	%		0.4

December 31, 2024


Loan Type (1)	Number of Loans		Principal Balance		Unamortized (fees)/costs, net		Allowance for credit losses			Carrying Value		Weighted Average Interest Rate (2)			Weighted Average Years to Maturity (3)
First mortgage loans		23	$	549,303	$	388	$	(9,898	)	$	539,793		7.7	%		0.6
Credit loans		2		13,380		—		(4,000	)		9,380		9.2	%		1.9
Total and average		25	$	562,683	$	388	$	(13,898	)	$	549,173		7.7	%		0.6

____________

(1)

First mortgage loans are first position mortgage loans and credit loans are mezzanine and subordinated loans.

(2)

Weighted average interest rate is based on the loan spreads plus the applicable indices as of the last interest reset date, which is typically the 15th of each month. On December 15, 2025, the one-month term USD Secured Overnight Financing Rate (“SOFR”) rate reset to 3.75%. On December 15, 2024, the SOFR rate reset to 4.40%. Weighted average interest rate excludes maturity default interest and interest on loans placed on nonaccrual status.

(3)

Weighted average years to maturity excludes allowable extensions on the loans.

For the years ended December 31, 2025 and 2024, the activity in the Company’s commercial mortgage loans, held-for-investment portfolio was as follows:


Year Ended December 31, 2025	Commercial mortgage loans at cost			Allowance for credit losses			Carrying Value
Balance at Beginning of Year	$	563,071		$	(13,898	)	$	549,173
Loan originations/advances		2,043			—			2,043
Principal repayments		(99,369	)		—			(99,369	)
Sale of loan (1)		(47,476	)		—			(47,476	)
Amortization of loan origination and deferred exit fees		1,445			—			1,445
Deferred interest capitalized on real estate loan		631			—			631
Origination fees and extension fees received on commercial loans		(1,316	)		—			(1,316	)
Transfer on foreclosure to real estate owned (2)		(61,826	)		—			(61,826	)
Loan written off (3)		(5,380	)		—			(5,380	)
Reversal of credit losses		—			1,091			1,091
Charge-offs (4)		—			8,877			8,877
Balance at End of Period	$	351,823		$	(3,930	)	$	347,893

(1)

Relates to the sale of a loan that was placed on nonaccrual status as of July 15, 2025. The Company completed the sale of the loan in September 2025 and recognized a loss on sale of $8,413 on the loan, which is included within net realized (loss) gain on disposition of commercial loans in the accompanying consolidated statements of operations.

(2)

Relates to the acquisition of two properties secured by senior loans. See Note 13 – “Real Estate Owned” for additional information.

(3)

Relates to write-off of a loan. See “Asset-Specific CECL Reserve” section below for further information.

(4)

Relates to the acquisition of two properties secured by senior loans, settlement of a loan and write-off of a loan. See Note 13 – “Real Estate Owned” and “Asset-Specific CECL Reserve” section below for additional information.


Year Ended December 31, 2024	Commercial mortgage loans at cost			Allowance for credit losses			Carrying Value
Balance at Beginning of Year	$	743,852		$	(21,849	)	$	722,003
Loan originations/advances		10,217			—			10,217
Principal repayments		(123,778	)		—			(123,778	)
Sale of loan (1)		(12,749	)		—			(12,749	)
Amortization of loan origination and deferred exit fees		600			—			600
Origination fees and extension fees received on commercial loans		(1,184	)		—			(1,184	)
Transfer on foreclosure to real estate owned (2)		(53,887	)		—			(53,887	)
Provision for credit losses		—			(2,481	)		(2,481	)
Charge-offs (2)		—			10,432			10,432
Balance at End of Period	$	563,071		$	(13,898	)	$	549,173

(1)

Relates to sale of a loan at par. The loan was placed on nonaccrual status as of February 1, 2024 and any subsequent cash collected was being applied to the principal balance. The Company completed the sale of the loan in September 2024 and recognized a gain on sale of $929 on the loan. See Note 5 for further information.

(2)

Relates to acquisition of two properties secured by a senior loan in July 2024 and one property secured by a senior loan in October 2024. See Note 13 - “Real Estate Owned” for additional information.

The following table presents the activity in the Company’s allowance for credit losses:


Year Ended December 31, 2025	Commercial Mortgage Loans			Unfunded Loan Commitments (1)			Total
Balance at beginning of year	$	(13,898	)	$	(96	)	$	(13,994	)
Reversal of credit losses		1,091			74			1,165
Charge-offs (2)		8,877			—			8,877
Ending allowance for credit losses	$	(3,930	)	$	(22	)	$	(3,952	)

(1)

The reserve for expected credit losses related to unfunded loan commitments is recorded in “accrued expenses and other liabilities” on the consolidated balance sheets following the adoption of ASU 2016-13 on January 1, 2023.

(2)


Year Ended December 31, 2024	Commercial Mortgage Loans			Unfunded Loan Commitments (1)			Total
Balance at beginning of year	$	(21,849	)	$	(289	)	$	(22,138	)
(Provision for) reversal of credit losses		(2,481	)		193			(2,288	)
Charge-offs (2)		10,432			—			10,432
Ending allowance for credit losses	$	(13,898	)	$	(96	)	$	(13,994	)

As of December 31, 2025, the Company had a total CECL reserve of $3,952, which included an asset-specific component of $942 related to one loan. During the year ended December 31, 2025, the Company decreased the CECL reserve by $10,042, which includes $8,877 charge-offs related to four loans. This CECL reserve reflects certain loans assessed for impairment in the Company’s portfolio as well as reserves determined based on an analysis of macroeconomic conditions. See “Asset-Specific CECL Reserve” section below for further discussion on the loans with asset-specific CECL reserve.

As of December 31, 2024, the Company had a total CECL reserve of $13,994, which included an asset-specific component of $7,219 related to six loans. During the year ended December 31, 2024, the Company recognized $2,288 in additional provision for credit losses and reduced the CECL reserve by $10,432 with the charge-off of two loans. This CECL reserve reflects certain loans assessed for impairment in the Company’s portfolio as well as reserves determined based on an analysis of macroeconomic conditions.

For further information on the Company’s allowance for credit losses policy, see “Note 2 – Summary of Significant Accounting Policies.”

All investments are assigned an initial risk rating of 2 at origination or acquisition.

As of December 31, 2025, five loans had a risk rating of 2, eight had a risk rating of 3 and two had a risk rating of 4. As of December 31, 2024, thirteen loans had a risk rating of 2, six had a risk rating of 3, four had a risk rating of 4 and two had a risk rating of 5.

The table below provides the components of the asset-specific CECL reserve as of December 31, 2025 and 2024:


Loan Type	Collateral Type	December 31, 2025		December 31, 2024
Credit	Office	$	—	$	4,000	(1)
Senior	Office		—		937	(2)
Senior	Office		—		1,080	(3)
Senior	Multifamily		—		212	(4)
Senior	Office		—		803	(5)
Senior	Industrial		—		187	(6)
Senior	Multifamily		942		—	(7)
Total		$	942	$	7,219
____________

(1)

The loan was secured by an office property in Las Vegas. On July 1, 2025, the Company entered into a forbearance and modification agreement with the borrower, which extended the maturity date of the loan to December 31, 2025. In addition, the Company agreed to accept $2,250 for the satisfaction of the loan balance plus all accrued and unpaid interest and lender fees. The borrower made a payment of $500 in July 2025 that was applied against the required amounts due. In January 2026, the Company was informed that the sponsor is turning over the property to the senior lender. As a result, the Company wrote off the entire outstanding principal balance of $5,380 of the loan as of December 31, 2025. The loan had been on nonaccrual status since July 1, 2024.

(2)

The loan was secured by an office property in Memphis, TN with a maturity date of November 9, 2026. During the fourth quarter of 2024, the borrower sold a property included in the loan and paid down the principal balance of $5,072, and the Company extended the loan for one year. On October 28, 2025, the Company entered into a discounted payoff agreement with the borrower, pursuant to which the loan was settled for $1,678 in full satisfaction of all obligations under the loan.

(3)

The loan is secured by an office property in San Diego, CA with an outstanding balance of $13,626 and an unfunded commitment of $153 as of December 31, 2025, and a maturity date of May 9, 2026. During the quarter ended March 31, 2025, the Company observed an increase in the in-place net operating income and other macroeconomic improvements which resulted in an improvement in the estimated value of the property. As the estimated value exceeded the loan balance, the asset-specific CECL reserve was reversed. During the quarter ended December 31, 2025, the Company reviewed the property performance and estimated the property value, noting that the valuation exceeded the outstanding loan balance. As a result, no asset-specific CECL reserve was recorded for the loan as of December 31, 2025. The loan has a risk rating of 3 as of December 31, 2025.

(4)

The loan is secured by a multifamily property in Arlington, TX with an outstanding balance of $24,081 and no unfunded commitment as of December 31, 2025, and a maturity date of December 9, 2026. During the quarter ended March 31, 2025, the Company observed an increase in the in-place net operating income and other macroeconomic improvements which resulted in an improvement in the estimated value of the property. As the estimated value exceeded the loan balance, the asset-specific CECL reserve was reversed. During the quarter ended December 31, 2025, the Company reviewed the property performance and estimated the property value, noting that the valuation exceeded the outstanding loan balance. As a result, no asset-specific CECL reserve was recorded for the loan as of December 31, 2025. The loan has a risk rating of 3 as of December 31, 2025.

(5)

The loan is secured by an office property in Honolulu, HI with an outstanding balance of $12,700 and no unfunded commitment as of December 31, 2025. The loan matured on April 9, 2023 and was accruing default interest. On March 18, 2025, the Company extended the loan maturity date to February 9, 2026 to allow the borrower to obtain long-term financing or other bridge financing. As part of the extension, the borrower made a principal reduction payment of $750 and paid other considerations. See “Loan Modifications” below for further information. During the quarter ended June 30, 2025, the Company observed an increase in the in-place net operating income and other macroeconomic improvements which resulted in an improvement in the estimated value of the property. As the estimated value exceeded the loan balance, the asset-specific CECL reserve was reversed. During the quarter ended December 31, 2025, the Company reviewed the property performance and estimated the property value, noting that the valuation exceeded the outstanding loan balance. As a result, no asset-specific CECL reserve was recorded for the loan as of December 31, 2025. The loan has a risk rating of 4 as of December 31, 2025. The loan matured on February 9, 2026 and was not repaid or extended. The Company sent the borrower a maturity default notice and began the foreclosure process.

During the years ended December 31, 2025 and 2024, the Company recognized $2,569 and $426, respectively, in interest income related to the nonaccrual status loans prior to such loans being placed on nonaccrual status. During the years ended December 31, 2025 and 2024, there was no reversal of interest income as a result of placing the loans on nonaccrual status. For the year ended December 31, 2025 and 2024, the total interest income forgone after placing these loans on nonaccrual status was $2,692 and $4,599.

The Company may amend or modify a loan based on its specific facts and circumstances. These modifications are often in the form of a term extension to provide the borrower additional time to refinance or sell the collateral property in order to repay the principal balance of the loan. Such extensions are generally made at the loan’s contractual interest rate and may require an extension fee be paid to the Company.

During the year ended December 31, 2025, the Company made two such modifications that are disclosable under ASU 2022-02, Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”), as they were considered an other-than-insignificant payment delay for a borrower experiencing financial difficulty. In the first instance, the Company entered into a forbearance and modification agreement with the borrower under a credit loan secured by an office property located in Las Vegas, NV, which extended the maturity date to December 31, 2025, as described above. In addition, the Company agreed to accept $2,250 for the satisfaction of the loan balance plus all accrued and unpaid interest and lender fees. The borrower made a payment of $500 in July 2025 that was applied against the required amounts due. In January 2026, the Company was informed that the sponsor is turning over the property to the senior lender. As a result, as of December 31, 2025, the Company wrote off the entire outstanding principal balance of $5,380 of the loan. In the second instance, the Company granted a term extension to February 9, 2026 for a senior loan secured by an office property located in Honolulu, HI described above. The modification provided for $750 in principal paydown and payments toward cash flow reserve deposit and modification fee of $600 and $50, respectively. The modification also provides for the accrued maturity default interest of $631 on the loan as of March 31, 2025 to be repaid as deferred commitment fee upon loan maturity. The loan’s modified terms were included in the determination of the CECL reserve. The loan had an amortized cost basis of $12,700, representing 3.6% of the Company’s commercial mortgage loans as of December 31, 2025. The loan matured on February 9, 2026 and was not repaid or extended. The Company sent the borrower a maturity default notice and began the foreclosure process.

During the year ended December 31, 2024, the Company made one such modification that is disclosable under ASU 2022-02, as it was considered an other-than-insignificant payment delay for a borrower experiencing financial difficulty. In this instance, the Company granted a two-year term extension, which can be further extended by one year subject to certain terms and conditions, for a senior loan secured by an office property located in Charlotte, NC described above. The Company waived maturity default interest of $738 on the loan. No principal was forgiven as a result of the modification. The modification provides for payment-in-kind of any accrued interest that exceeds a per annum rate of 4%. The loan’s modified terms were included in the determination of the CECL reserve. The loan had an amortized cost basis of $23,078, representing 4.1% of the Company’s commercial mortgage loans as of December 31, 2024.