v3.26.1
Collateralized Loan Obligations
 3 Months Ended
Mar. 31, 2026
Transfers and Servicing [Abstract]  
Collateralized Loan Obligations Collateralized Loan Obligations
The table below summarizes our collateralized loan obligations as of March 31, 2026:
FacilityCollateral
$ in thousandsTerm
Weighted Average Interest Rate(1)
Amount OutstandingFair ValueCountPrincipal Balance OutstandingFair Value
INCREF 2025-FL1Oct 20425.63%$998,234 $1,004,858 29 $1,180,591 $1,187,520 
Total$998,234 $1,004,858 29$1,180,591 $1,187,520 
(1)Represents the weighted average interest rate in effect as of March 31, 2026.
In May 2025, the Company financed a pool of loans and loan participations from its existing loan portfolio through the CLO Issuer, contributing $1.2 billion of commercial real estate loan investments to the CLO Issuer and issuing $1.2 billion of notes. The Company retained $219.1 million of the notes issued by the CLO Issuer. The rated notes bear interest at Term SOFR plus a spread. The collateralized loan obligations execution provides the Company with match-term financing on a non-mark-to-market and non-recourse basis. The third-party notes were issued at a discount of $2.5 million, with the Company receiving $995.7 million in proceeds from the transaction.
The CLO Issuer is a VIE primarily because the unrelated investors do not have substantive voting or participating rights. To assess whether the Company has the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, the Company considered, among other factors, its role in establishing the VIE and its ongoing rights and responsibilities. We determined that we are the primary beneficiary as (1) we have the power to direct activities of the VIE that most significantly impact the VIE’s economic performance, and (2) through our retained interests, we have the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. The Company considers its variable interests, as well as any variable interests of its related parties in making this determination. The majority of the operations of the VIE are funded with cash flows generated from the loans within the VIE. Assets held by the VIE can be used only to settle obligations of the VIE. The liabilities of the VIE are non-recourse to us and can only be satisfied from the assets of the VIE. We are not obligated to provide, have not provided, and do not intend to provide material financial support to the consolidated VIE.
The consolidation of the CLO Issuer results in an increase in our gross assets, liabilities, revenues and expenses, however the impact to our equity and net income are equivalent to our net retained economic interests in the VIE. During the three months ended March 31, 2026, we recorded $14.7 million of interest expense related to the CLO Issuer.

The following table details the assets and liabilities of the CLO Issuer:
$ in thousandsMarch 31, 2026
Assets:
Restricted cash$150 
Commercial real estate loan investments, at fair value1,187,520 
Interest receivable3,672 
Other assets36,992 
Total assets$1,228,334 
Liabilities:
Collateralized loan obligations, at fair value$1,004,858 
Interest payable2,029 
Total liabilities$1,006,887