v3.26.1
REAL ESTATE-RELATED SECURITIES AND OTHER (Tables)
 3 Months Ended
Mar. 31, 2026
Investments, Debt and Equity Securities [Abstract]  
Schedule of Securities Available for Sale The following is a summary of the Company’s real estate-related securities and other as of March 31, 2026 (in thousands):
Real Estate-Related Securities and Other
Gross Unrealized
Amortized Cost Basis
Gains
Losses
CECLFair Value
CMBS$305,754 $75 $(14,491)$(182,299)$109,039 
CLO subordinated note
27,139 — (9,802)— 17,337 
Equity securities
58,447 — (17,241)— 41,206 
Total real estate-related securities and other
$391,340 $75 $(41,534)$(182,299)$167,582 
The following table provides the activity for the real estate-related securities and other during the three months ended March 31, 2026 (in thousands):
Amortized Cost Basis
Unrealized (Loss) Gain
CECLFair Value
Real estate-related securities and other as of January 1, 2026
$391,277 $(39,967)$(182,104)$169,206 
Accretion of discount on real estate-related securities
330 — — 330 
Accretion of interest income on CLO subordinated note
1,012 — — 1,012 
Capitalized interest income on real estate-related securities326 — — 326 
Principal payments received on real estate-related securities
(513)— — (513)
Proceeds from the repayment on the CLO subordinated note
(1,092)— — (1,092)
Unrealized loss on real estate-related securities and other, net
— (1,492)— (1,492)
Provision for credit losses
— — (195)(195)
Real estate-related securities and other as of March 31, 2026
$391,340 $(41,459)$(182,299)$167,582 
The scheduled maturities of the Company’s CMBS and CLO subordinated note as of March 31, 2026 are as follows (in thousands):
CMBS and CLO Subordinated Note (1)
Amortized Cost Estimated Fair Value
Due within one year$43,335 $43,299 
Due after one year through five years20,105 20,173 
Due after five years through ten years15,327 11,452 
Due after ten years61,341 40,968 
Total$140,108 $115,892 
____________________________________
(1) Excludes two tranches of a CMBS position held by the Company that were in maturity default as of March 31, 2026. The CMBS had an aggregate amortized cost and estimated fair value of $192.8 million and $10.5 million, respectively, as of March 31, 2026.
Schedule of Current Expected Credit Loss
The following table presents the activity in the Company’s current expected credit losses related to its positions in two different tranches of a CMBS instrument for the three months ended March 31, 2026 and 2025 (in thousands):
CMBS
Current expected credit losses as of January 1, 2026
$182,104 
Provision for credit losses
195 
Current expected credit losses as of March 31, 2026
$182,299 
CMBS
Current expected credit losses as of January 1, 2025
$110,062 
Provision for credit losses
72,266 
Current expected credit losses as of March 31, 2025
$182,328 
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 
____________________________________
(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 
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.