During the year ended December 31, 2025, the Company acquired one multifamily property located in Kansas City, MO (the “Arbor Mist property”) and one office property located in Charlotte, NC (the “Parkview property”), through non-judicial foreclosure transactions. The properties previously collateralized two senior loans. The acquisitions were accounted for as asset acquisitions under applicable GAAP guidance. The properties were recorded on the Company’s consolidated balance sheet based on the estimated fair value at acquisition. The Company’s fair market value estimate was determined based on appraisals performed by independent third-party appraisers.

The following table shows additional information about the acquisitions, including the fair value of the assumed assets and liabilities on the acquisition dates:


	Arbor Mist		Parkview
Acquisition date	May 1, 2025		July 2, 2025
Number of properties	1		1
Location	Kansas City, MO		Charlotte, NC
Property type	Multifamily		Office
Amortized cost basis of loan as of acquisition date	$	38,933	$	22,892
CECL reserve as of acquisition date	$	68	$	2,311
Loan risk rating as of acquisition date	5		5
CECL reserve charge-off upon acquisition	$	68	$	2,311

Land	$	1,778	$	6,620
Building and improvements		35,123		10,733
Furniture, fixtures and equipment		1,185		—
Acquired in-place lease value		773		2,866
Acquired above-market lease value		—		231
Acquired below-market lease value		—		(325	)
Total	$	38,859	$	20,125

The Company recognized a net gain of $531 upon the foreclosure transactions, which represents total assets received, net of liabilities assumed, less carrying value of loans adjusted for interest, extension fee and CECL reserve.

The following table presents the REO assets as of March 31, 2026 and December 31, 2025:


	March 31, 2026			December 31, 2025
Land	$	14,231		$	14,231
Building and improvements		81,651			80,769
Furniture, fixtures and equipment		1,672			1,667
Accumulated depreciation		(4,217	)		(3,385	)
Real estate owned, net	$	93,337		$	93,282

During the three months ended March 31, 2026 and 2025 the Company incurred $832 and $409 of depreciation expense, respectively.

The following table summarizes the Company’s identified intangible assets and liabilities as of March 31, 2026 and December 31, 2025:


	March 31, 2026			December 31, 2025
Intangible assets:
Acquired in-place lease value	$	7,450		$	7,450
Acquired above-market lease value		262			262
Accumulated amortization		(3,984	)		(3,609	)
Acquired lease intangible assets, net	$	3,728		$	4,103
Intangible liabilities:
Acquired below-market lease value	$	776		$	776
Accumulated amortization		(219	)		(178	)
Acquired lease intangible liabilities, net	$	557		$	598

Amortization pertaining to acquired in-place lease value, above-market lease value and below-market lease value is summarized below:


	Three months ended March 31,
	2026			2025
Amortization recorded as amortization expense:
Acquired in-place lease value	$	361		$	519
Amortization recorded as a (reduction) increase to rental income:
Acquired above-market leases	$	(23	)	$	(6	)
Acquired below-market leases		41			24
Net rental income increase	$	18		$	18

Estimated amortization of the respective intangible lease assets and liabilities as of March 31, 2026 for each of the five succeeding years and thereafter is as follows:


	In-Place Leases		Above-Market Leases		Below-Market Leases
2026 (remainder of year)	$	944	$	52	$	120
2027		1,058		61		153
2028		709		34		123
2029		373		9		88
2030		227		7		56
Thereafter		239		15		17
Total	$	3,550	$	178	$	557

The table below presents the future minimum lease payments to be received under non-cancelable operating leases, excluding tenant reimbursements of expenses, and assuming no expiring leases are renewed, as of March 31, 2026. Leases for the multifamily properties are generally 12 months or less and are therefore excluded from the table below.


	Lease Payments
2026 (remainder of year)	$	3,848
2027		4,733
2028		3,695
2029		2,732
2030		2,140
Thereafter		1,873
Total	$	19,021