v3.26.1
LOANS HELD-FOR-INVESTMENT
 3 Months Ended
Mar. 31, 2026
Receivables [Abstract]  
LOANS HELD-FOR-INVESTMENT
NOTE 8 — LOANS HELD-FOR-INVESTMENT
The Company’s loans held-for-investment consisted of the following as of March 31, 2026 and December 31, 2025 (in thousands):
As of March 31,As of December 31,
20262025
First mortgage loans
$2,951,719 $3,361,679 
Total CRE loans held-for-investment and related receivables, net2,951,719 3,361,679 
Liquid corporate senior loans26,880 26,909 
Corporate senior loans400,469 363,879 
Loans held-for-investment and related receivables, net$3,379,068 $3,752,467 
Less: Current expected credit losses$(290,707)$(297,878)
Total loans held-for-investment and related receivables, net$3,088,361 $3,454,589 
The following table details overall statistics for the Company’s loans held-for-investment as of March 31, 2026 and December 31, 2025 (dollar amounts in thousands):
CRE Loans (1) (2)
Liquid Corporate Senior LoansCorporate Senior Loans
March 31, 2026December 31, 2025March 31, 2026December 31, 2025March 31, 2026December 31, 2025
Number of loans30 35 8 8 39 35 
Principal balance$2,965,205 $3,377,417 $27,318 $27,386 $405,937 $368,341 
Net book value$2,672,202 $3,074,451 $22,732 $22,664 $393,427 $357,474 
Weighted-average interest rate (3)
6.7 %7.0 %10.0 %10.0 %9.4 %9.5 %
Weighted-average maximum years to maturity
2.42.52.83.03.03.0
Unfunded loan commitments (4)
$150,816 $165,818 $— $— $68,973 $51,464 
____________________________________
(1)As of March 31, 2026, 89.8% 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 three months ended March 31, 2026 (in thousands):
CRE Loans
Liquid Corporate Senior LoansCorporate Senior LoansTotal Loan Portfolio
Balance, January 1, 2026
$3,074,451 $22,664 $357,474 $3,454,589 
Loan originations, acquisitions and funding
66,758 — 38,991 105,749 
Principal repayments received
(482,315)(68)(1,457)(483,840)
Capitalized interest3,345 — 62 3,407 
Deferred fees and other items (1)
(1,251)— (1,598)(2,849)
Accretion and amortization of fees and other items3,503 39 592 4,134 
Reversal of (provision for) credit losses (2)
7,711 97 (637)7,171 
Balance, March 31, 2026
$2,672,202 $22,732 $393,427 $3,088,361 
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(1)Other items primarily consist of purchase discounts or premiums and deferred origination expenses.
(2)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 March 31, 2026, the Company’s CRE loans had the following characteristics based on carrying value (dollar amounts in thousands):
Collateral Property Type
As of March 31, 2026
Office
$1,761,637 59.7 %
Multifamily405,134 13.7 %
Industrial362,877 12.3 %
Hospitality336,280 11.4 %
Mixed Use85,791 2.9 %
Self-Storage— — %
Total first mortgage loans
$2,951,719 100 %
Less: current expected credit losses
(279,517)
Total first mortgage loans, net
$2,672,202 
Geographic Location
As of March 31, 2026
South
$1,149,314 38.9 %
West
880,537 29.8 %
East
574,764 19.5 %
Various
347,104 11.8 %
Total first mortgage loans
$2,951,719 100 %
Less: current expected credit losses
(279,517)
Total first mortgage loans, net
$2,672,202 
Current Expected Credit Losses – Loans Held-For-Investment
Current expected credit losses reflect the Company’s current estimate of potential credit losses related to loans held-for-investment included in the Company’s condensed consolidated balance sheets. Refer to Note 2 — Summary of Significant Accounting Policies for further discussion of the Company’s current expected credit losses.
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 three months ended March 31, 2026 and 2025 (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, 2026
$287,228 $18,130 $4,245 $— $6,405 $840 $316,848 
(Reversal of) provision for credit losses(7,711)(550)(97)— 637 403 (7,318)
Charge-offs of CECL— — — — — 
Current expected credit losses as of March 31, 2026
$279,517 $17,580 $4,148 $— $7,042 $1,243 $309,530 
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 
____________________________________
(1)Current expected losses for unfunded or unsettled loan commitments are included in accrued expenses and accounts payable on the condensed consolidated balance sheets.
Changes to current expected credit losses are recognized through net income (loss) on the Company’s condensed consolidated statements of operations.
During the three months ended March 31, 2026, the Company recorded a net decrease of $7.3 million in the current expected credit loss reserve against the loans held-for-investment portfolio, bringing the total current expected credit loss reserve on funded and unfunded commitments to $309.5 million. The current expected credit loss reserve reflects certain loans assessed for impairment as well as macroeconomic and current portfolio conditions.
As of March 31, 2026, the Company did not have any first mortgage loan investments on nonaccrual status. As of March 31, 2026, the Company’s asset-specific credit loss reserve totaled $248.5 million on funded and unfunded commitments, which related to the Company’s risk-rated 5 first mortgage loans and liquid corporate senior loans. The asset-specific credit loss reserve is recorded based on the Company’s estimation of the fair value of each loan’s underlying collateral, less costs to sell the underlying collateral where applicable, as of March 31, 2026.
Risk Ratings
As further described in Note 2 — Summary of Significant Accounting Policies, the Company evaluates its loans held-for-investment portfolio on a quarterly basis. Each quarter, the Company assesses the risk factors of each loan, and assigns a risk rating based on several factors. Factors considered in the assessment include, but are not limited to, loan and credit structure, current LTV ratio, debt yield, collateral performance, and the quality and condition of the sponsor, borrower, and guarantor(s). Loans are rated “1” (less risk) through “5” (greater risk), which ratings are defined in Note 2 — Summary of Significant Accounting Policies.
The Company’s primary credit quality indicator is its risk ratings, which are further discussed above. The following table presents the net book value of the Company’s loans held-for-investment portfolio as of March 31, 2026 by year of origination, loan type, and risk rating (dollar amounts in thousands):
Amortized Cost of Loans Held-For-Investment by Year of Origination (1)
As of March 31, 2026
Number of Loans20262025202420232022
Prior
Total
First mortgage loans by internal risk rating:
1—$— $— $— $— $— $— $— 
2—— — — — — — — 
32155,456 560,184 80,877 230,550 552,382 302,422 1,781,871 
43— — 102,637 34,756 172,150 — 309,543 
56

— — — — 503,852 356,453 860,305 
Total first mortgage loans3055,456 560,184 183,514 265,306 1,228,384 658,875 2,951,719 
Liquid corporate senior loans by internal risk rating: (2)
1—— — — — — — — 
2—— — — — — — — 
33— — 1,867 1,711 13,518 — 17,096 
42— — — — — 3,798 3,798 
53— — 4,299 — — 1,687 5,986 
Total liquid corporate senior loans8— — 6,166 1,711 13,518 5,485 26,880 
Corporate senior loans by internal risk rating:
1—— — — — — — — 
2—— — — — — — — 
33634,712 129,270 95,411 72,811 30,469 — 362,673 
43— — — 11,685 26,111 — 37,796 
5—— — — — — — — 
Total corporate senior loans3934,712 129,270 95,411 84,496 56,580 — 400,469 
Less: Current expected credit losses(290,707)
Total loans held-for-investment and related receivables, net77$3,088,361 
Weighted Average Risk Rating (3)
3.6 
____________________________________
(1)Date loan was originated or acquired by the Company. Origination dates are subsequently updated to reflect material loan modifications.
(2)As of March 31, 2026, three of the Company’s liquid corporate senior loan investments were on nonaccrual status with an aggregate carrying value of $6.0 million, which represented less than 1.0% of the carrying value of the Company’s loans held-for-investment portfolio.
(3)Weighted average risk rating calculated based on carrying value at period end.
Loan Modifications
The Company may amend or modify a loan depending on the loan’s specific facts and circumstances, which are disclosable under ASU No. 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”). Such modifications generally provide borrowers with additional time to refinance or sell the collateral property, interest payment adjustments, deferral of scheduled principal repayments, and/or adjustments or waivers of performance tests that are prerequisite to the extension of a loan maturity. Loan modifications that allow for the option to pay
interest in-kind (“PIK”) result in the interest being capitalized and added to the outstanding principal balance of the respective loan. During the three months ended March 31, 2026, the Company had no loan modifications that require disclosure pursuant to ASC 326.