COMMERCIAL MORTGAGE LOANS HELD-FOR-INVESTMENT (Tables)
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12 Months Ended |
Dec. 31, 2025 |
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| Receivables [Abstract] |
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| Schedule of Commercial Mortgage Loans |
The following tables summarize certain characteristics of the Company's investments in commercial mortgage loans as of December 31, 2025 and December 31, 2024:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 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 |
(1) Carrying Value includes $1,657,584 and $3,466,214 in unaccreted purchase discounts as of December 31, 2025 and December 31, 2024, respectively. (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. (3) Weighted average remaining term assumes all extension options are exercised by the borrower; provided, however, that our loans may be repaid prior to such date. (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.
Activity: For the years ended December 31, 2025 and December 31, 2024, the loan portfolio activity was as follows: | | | | | | | | | | | 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 | |
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| Schedule of Loan Risk Ratings |
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 | | | $ | — | |
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| Schedule of Geographic Concentrations |
The following tables present the geographic and property types of collateral underlying the Company's commercial mortgage loans as a percentage of the loans' carrying value as of December 31, 2025 and December 31, 2024: Loans Held-for-Investment | | | | | | | | | | | | | | | | | December 31, 2025 | | December 31, 2024 | | Geography | | | | | | South | | 32.4 | % | | 36.6 | % | | Southwest | | 26.2 | | | 32.9 | | | Mid-Atlantic | | 16.9 | | | 16.1 | | | Midwest | | 13.9 | | | 7.7 | | | West | | 10.6 | | | 6.7 | | | Total | | 100.0 | % | | 100.0 | % |
| | | | | | | | | | | | | | | | | December 31, 2025 | | December 31, 2024 | | Collateral Property Type | | | | | | Multifamily | | 92.6 | % | | 92.3 | % | | Healthcare | | 7.4 | | | 7.1 | | | Self-Storage | | — | | | 0.6 | | | | | | | | | | | | | Total | | 100.0 | % | | 100.0 | % |
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| Schedule of Allowance for Loan Losses |
The following table presents the changes for the years ended December 31, 2025 and December 31, 2024 in the provision for credit losses on loans held-for-investment.
| | | | | | | | | | | | | | | | | Year ended | | | December 31, 2025 | | December 31, 2024 | | Allowance for credit losses at beginning of period | | $ | 11,320,220 | | | $ | 6,059,006 | | | Provision for credit losses | | 14,448,482 | | | 5,261,214 | | | Charge-offs | | (3,110,581) | | | — | | | Allowance for credit losses at end of period | | $ | 22,658,121 | | | $ | 11,320,220 | |
The following table presents the changes for the years ended December 31, 2025 and December 31, 2024 in the provision for credit losses on the unfunded commitments of the Company's loans held-for-investment:
| | | | | | | | | | | | | | | | | Year ended | | | December 31, 2025 | | December 31, 2024 | | Allowance for credit losses at beginning of period | | $ | 57,554 | | | $ | 43,647 | | | Provision for credit losses | | (57,554) | | | 13,907 | | | Allowance for credit losses at end of period | | $ | — | | | $ | 57,554 | |
The following tables presents the allowance for credit losses for loans held for investment: | | | | | | | | | | | | | | | | | | | | | | | 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 | |
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