v3.26.1
FAIR VALUE MEASUREMENTS (Tables)
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Schedule of Net Book Value and Fair Value
In accordance with the fair value hierarchy described above, the following table details the net book value and fair value of the financial instruments described above as of March 31, 2026 and December 31, 2025 (in thousands):
March 31, 2026December 31, 2025
Net Book Value
Fair Value
Net Book ValueFair Value
Level
Financial assets:
First mortgage loans
$2,672,202 $2,709,416 $3,074,451 $3,131,673 3
Liquid corporate senior loans
22,732 18,860 22,664 19,294 (1)
Corporate senior loans
393,427 398,473 357,474 361,845 3
Total financial assets
$3,088,361 $3,126,749 $3,454,589 $3,512,812 
Financial liabilities:
Repurchase facilities, notes payable and credit facilities
$2,734,649 $2,684,233 $3,102,195 $3,052,010 2
Total financial liabilities
$2,734,649 $2,684,233 $3,102,195 $3,052,010 
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(1)As of March 31, 2026, $15.3 million and $3.6 million of the Company’s liquid corporate senior loans were classified in Level 2 and Level 3 of the fair value hierarchy, respectively. As of December 31, 2025, $15.6 million and $3.7 million of the Company’s liquid corporate senior loans were classified in Level 2 and Level 3 of the fair value hierarchy, respectively.
Schedule of Fair Value, Assets and Liabilities Measured on a Recurring Basis
In accordance with the fair value hierarchy described above, the following tables show the fair value of the Company’s financial assets that are required to be measured at fair value on a recurring basis as of March 31, 2026 and December 31, 2025 (in thousands):
Balance as of
March 31, 2026		Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Financial assets:
CMBS$109,039 $— $63,472 $45,567 
CLO subordinated note
17,337 — — 17,337 
Equity securities
41,206 40,449 — 757 
Total financial assets$167,582 $40,449 $63,472 $63,661 
  
Balance as of December 31, 2025Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Financial assets:
CMBS$111,762 $— $64,222 $47,540 
CLO subordinated note19,555 — — 19,555 
Equity securities
37,889 37,165 — 724 
Total financial assets
$169,206 $37,165 $64,222 $67,819 
Schedule of Reconciliation of the Changes in Financial Assets With Level 3 Inputs
The following are reconciliations of the changes in financial assets with Level 3 inputs in the fair value hierarchy for the three months ended March 31, 2026 (in thousands):
Level 3
Beginning Balance, January 1, 2026
$67,819 
Total gains and losses:
Unrealized loss included in other comprehensive (loss) income
(2,389)
Current expected credit losses
(195)
Unrealized loss on CLO subordinated note
(2,136)
Purchases and payments received:
Proceeds from the repayment on the CLO subordinated note
(1,092)
Accreted interest income
1,012 
Discounts, net316 
Capitalized interest income326 
Ending Balance, March 31, 2026
$63,661 
Schedule of Discount Rates and Terminal Capitalization rates of the Company’s Impairment Test
The following summarizes the ranges of discount rates and terminal capitalization rates used for the Company’s impairment test for the real estate assets during the three months ended March 31, 2025:
Three Months Ended March 31,
2025
Discount RateTerminal Capitalization Rate
9.5% - 11.9%
9.0% - 11.4%
Schedule of Impairment Charges by Asset Class
The following table presents the impairment charges by asset class recorded during the three months ended March 31, 2025 (in thousands):
Three Months Ended March 31,
2025
Asset class impaired:
Land$453 
Buildings, fixtures and improvements6,042 
Intangible lease assets531 
Total impairment loss$7,026