
								Weighted Average
Loan Type	Unpaid Principal Balance		Carrying Value(1)		Loan Count	Floating Rate Loan %		Coupon(2)		Term (Years)(3)
December 31, 2025
Loans held-for-investment
Senior secured loans(4)	$	1,140,268,217	$	1,136,706,113	61	100.0	%	7.2	%	1.7
Allowance for credit losses	N/A		$	(22,658,121)
	$	1,140,268,217	$	1,114,047,992	61	100.0	%	7.2	%	1.7


								Weighted Average
Loan Type	Unpaid Principal Balance		Carrying Value		Loan Count	Floating Rate Loan %		Coupon(1)		Term (Years)(2)
December 31, 2024
Loans held-for-investment
Senior secured loans(4)	$	1,065,563,646	$	1,060,123,298	65	100.0	%	8.1	%	2.1
	N/A		$	(11,320,220)
	$	1,065,563,646	$	1,048,803,078	65	100.0	%	8.1	%	2.1

(2) Weighted average coupon assumes applicable 30-day term Secured Overnight Financing Rate ("SOFR") of 3.85% and 4.51% as of December 31, 2025 and December 31, 2024, respectively, inclusive of weighted average interest rate floor of 2.18% and 0.63%, respectively. As of December 31, 2025 and December 31, 2024, 100.0% of the investments by total investment exposure earned a floating rate indexed to 30-day term SOFR.

(4) As of December 31, 2025, $856,064,487 of the carrying value of outstanding senior secured loans were held in VIEs and $257,983,507 of the carrying value of outstanding senior secured loans were held outside of VIEs. As of December 31, 2024, $1,049,886,009 of the carrying value of outstanding senior secured loans were held in VIEs and $(1,082,931) of the carrying value of outstanding senior secured loans were held outside of VIEs.


	Commercial Mortgage Loans Held-for-Investment
Balance at December 31, 2023	$	1,383,881,197
Purchases and advances	58,423,744
Principal payments	(391,025,468)
Accretion of purchase discount	3,534,649
Origination and other loan fees	(1,487,623)
Accretion of deferred loan fees	737,793

Provision for credit losses	(5,261,214)
Balance at December 31, 2024	$	1,048,803,078
Purchases and advances	403,888,645
Principal repayments	(266,906,712)
Transfer to Real Estate Owned	(62,580,330)
Charge-offs	3,110,581
Purchase discount	(111,184)
Origination and other loan fees	(2,418,752)
Accretion of purchase discount	1,919,809

Accretion of deferred loan fees	2,791,339

Provision for credit losses	(14,448,482)
Balance at December 31, 2025	$	1,114,047,992

Loan Risk Ratings: As further described in Note 2, the Company evaluates the commercial mortgage loan portfolio on a quarterly basis and assigns a risk rating based on a variety of factors. The following table presents the principal balance and net book value of the loan portfolio based on the Company's internal risk ratings as of December 31, 2025 and December 31, 2024:


December 31, 2025
				Amortized Cost by Year of Origination
Risk Rating	Number of Loans	Outstanding Principal		2025		2024			2023		2022		2021
1	—	$	—	$	—	$	—	0	$	—	$	—	$	—
2	9	161,089,912		43,904,254		48,438,856			—		68,375,256		—
3	38	752,514,730		182,723,449		133,591,415			—		134,038,225		297,723,546
4	6	109,281,497		—		—			—		73,034,316		34,009,099
5	8	117,382,078		—		—			—		84,542,855		13,666,721
	61	$	1,140,268,217	$	226,627,703	$	182,030,271		$	—	$	359,990,652	$	345,399,366


December 31, 2024
				Amortized Cost by Year of Origination
Risk Rating	Number of Loans	Outstanding Principal		2024		2023		2022		2021		2020
1	—	$	—	$	—	$	—	$	—	$	—	$	—
2	3	57,840,000		27,048,495		—		30,416,761		—		—
3	40	616,637,103		31,019,735		17,973,555		266,895,843		294,277,177		—
4	16	292,826,616		—		—		140,183,307		147,641,857		—
5	6	98,259,927		—		—		74,158,849		19,187,499		—
	65	$	1,065,563,646	$	58,068,230	$	17,973,555	$	511,654,760	$	461,106,533	$	—

The average risk rating of the portfolio decreased during the year ended December 31, 2025. The change in underlying risk rating consisted of loans that paid off with a risk rating of "2" of $27.1 million, a risk rating of "3" of $208.2 million, a risk rating of "4" of $23.2 million and a risk rating of "5" of $8.1 million, offset by funding of loans with a risk rating of "2" of $96.1 million, a risk rating of "3" of $306.8 million and a risk rating of "5" of $0.9 million during the year ended December 31, 2025. Additionally, $34.3 million of loans with a risk rating of "3" transitioned to a risk rating of "2", $42.9 million of loans with a risk rating of "3" transitioned to a risk rating of "4", $13.7 million of loans transitioned from a risk rating of "3" to a risk rating of "5",

$114.5 million of loans transitioned from a risk rating of "4" to a risk rating of "3", and $77.2 million of loans transitioned from a risk rating of "4" to a risk rating of "5" and $49.2 million of loans transitioned from a risk rating of "5" to a risk rating of "3". Further, $35.7 million of loans with a risk rating of "3", $11.5 million of loans with a risk rating of "4" and $15.4 million of loans with a risk rating of "5" were foreclosed and moved to REO.


	December 31, 2025
	General Reserve		Specific Reserve		Total Reserve
Allowance for credit losses:
Loans held for investment	$	5,029,531	$	17,628,590	$	22,658,121

Total allowance for credit losses	$	5,029,531	$	17,628,590	$	22,658,121
Total unpaid principal balance	$	1,022,886,139	$	117,382,078	$	1,140,268,217


	December 31, 2024
	General Reserve		Specific Reserve		Total Reserve
Allowance for credit losses:
Loans held for investment	$	7,544,969	$	3,775,251	$	11,320,220
Unfunded loan commitments	57,554		—		57,554
Total allowance for credit losses	$	7,602,523	$	3,775,251	$	11,377,774
Total unpaid principal balance	$	967,303,719	$	98,259,927	$	1,065,563,646

During the year ended December 31, 2025, the Company recorded an increase of $11.3 million in the allowance for credit losses, bringing the total allowance for credit loss to $22.7 million as of December 31, 2025. For the year ended December 31, 2025, the Company's estimate of expected credit losses increased primarily due to specific reserves taken on risk-rated "5" multifamily loans and changes in macroeconomic assumptions employed in determining the Company's model-based general reserve, partially offset by a reduction in the average risk rating of the loan portfolio.

As of December 31, 2025, we had aggregate specific allowance of credit losses of $17.6 million due to management's: (1) continued identification of one loan collateralized by two multifamily properties in Philadelphia, PA ($1.3 million specific allowance) with an aggregate unpaid balance of $15.5 million as risk rated "5" due to maturity default; (2) continued identification of one loan collateralized by a multifamily property in Colorado Springs, CO ($2.4 million specific allowance; non-accrual cash basis) with an aggregate unpaid balance of $10.5 million as risk rated "5" due to monetary default; (3) identification of two loans collateralized by two multifamily properties in Arlington, TX ($3.6 million specific allowance; non-accrual cash basis) and Cedar Park, TX (no specific allowance; non-accrual cash basis) with an aggregate unpaid balance of $35.5 million as risk rated "5" due to maturity default and (4) identification of four loans collateralized by four multifamily properties in Des Moines, IA ($0.5 million specific allowance; non-accrual cash basis), Tampa, FL ($0.9 million specific allowance; non-accrual cash basis), Tallahassee, FL ($3.0 million specific allowance; non-accrual cash basis) and Ypsilanti, MI ($5.9 million specific allowance; non-accrual cash basis) with an aggregate principal balance of $55.8 million as risk rated "5" due to monetary default.

We recorded $0.8 million in cash basis income received on non-accrual loans during the year ended December 31, 2025, subsequent to their determination to be risk rated "5" loans and we received $0.3 million of cash proceeds from such loans that were applied as a reduction to the amortized cost basis of the respective loan.

As of December 31, 2024, we had aggregate specific allowance for credit losses of $3.8 million due to management's identification of: (1) three loans collateralized by four multifamily properties in Philadelphia, PA ($0.1 million specific allowance; non-accrual cost recovery), Orlando, FL ($0.4 million specific allowance; non-accrual cash basis) and Colorado Springs, CO ($1.1 million specific allowance; non-accrual cash basis) with an aggregate unpaid principal balance of $45.1 million as risk rated "5" due to monetary default; (2) one collateralized by two healthcare properties in Polk County, FL ($0.6 million specific allowance; non-accrual cash basis) with an aggregate unpaid principal balance of $6.1 million as risk rated "5" due to monetary default and (3) two loan collateralized by two multifamily properties in Dallas, TX (no specific allowance) and San Antonio, TX ($1.6 million specific allowance; non-accrual cash basis) with an aggregate unpaid principal balance of $47.0 million as risk rated "5" due to technical default.

In the second quarter of 2025, the $15.4 million San Antonio, TX ($2.4 million specific allowance) loan and a loan collateralized by a multifamily property in Houston, TX with an aggregate unpaid principal balance of $11.5 million ($0.5 million specific reserve) were foreclosed on, with ownership and deed to the property being taken by two newly formed subsidiaries of the Company. Additionally, in the third quarter of 2025, two loans collateralized by two multifamily properties in San Antonio, TX ($0.2 million specific allowance) with aggregate unpaid principal balance of $35.7 million were foreclosed on, with ownership and deed to the property being taken by two newly formed subsidiaries of the Company.

Our Manager's asset management team proactively manages the Company's investment portfolio. The asset management team, together with our Manager's underwriting and servicing teams, monitors the credit performance of the investment portfolio, working closely with borrowers to manage all of our positions and monitor financial performance of our collateral assets, including execution of business plans and daily activities within our investment portfolio.

The Company has elected to apply a practical expedient for collateral dependent assets in which the allowance for credit losses is calculated as the difference between the estimated fair value of the underlying collateral, less estimated costs to sell, and the amortized cost basis of the loan. As such, these loans receivable are measured at fair value on a nonrecurring basis using significant unobservable inputs and are classified as Level 3 assets in the fair value hierarchy. The fair value of the underlying collateral is determined using the income approach, market approach, or a combination thereof. The primary unobservable input for the income capitalization approach is the overall capitalization rate assumption used in the direct capitalization method, which ranged from 5.50%-8.60%. The significant unobservable input used for the market approach is the price per unit from a broker opinion of value or appraisal and third-

The Company may amend or modify a loan depending on the loan's specific facts and circumstances. These loan modifications typically include additional time for a borrower to refinance or sell their property, adjustment or waiver of performance tests that are prerequisite to the extension of a loan maturity, modification of terms of interest rate cap agreements, and/or deferral of scheduled principal payments. In exchange for a modification, we often receive a partial repayment of principal, a cash infusion to replenish interest or capital improvement reserves, termination of all or a portion of the remaining unfunded loan commitment, additional call protection and/or increase in the loan coupon or additional fees.

In March 2025, in connection with a loan assumption, the Company modified a risk-rated "5" multifamily loan located in Dallas, TX, with an outstanding principal balance of $31.9 million. The terms of the modification included, among other things, a $2.0 million principal repayment, a term extension of two years, a reduction in credit spread from 3.9% to 3.4% and a purchase of a replacement interest rate cap.