The Company originates and acquires first mortgage and mezzanine loans secured by commercial properties. The Company considers these loans to comprise a single portfolio of mortgage loans, and the Company has developed its systematic methodology to determine the allowance for credit losses based on a single portfolio. For purposes of certain disclosures herein, the Company disaggregates this portfolio segment into the following classes of finance receivables: senior loans; and subordinated and mezzanine loans. These loans can potentially subject the Company to concentrations of credit risk, including, without limitation: property type collateralizing the loan; loan category; loan size; loans to a single sponsor; and loans in a single geographic area. The Company’s loans held for investment are accounted for at amortized cost. Interest accrued but not yet collected is separately reported within accrued interest and fees receivable on the Company’s consolidated balance sheets. Amounts within that caption relating to loans held for investment were $16.9 million and $16.0 million as of June 30, 2025 and December 31, 2024, respectively.

During the six months ended June 30, 2025, the Company originated seven mortgage loans with aggregate total loan commitments of $695.6 million, an aggregate initial unpaid principal balance of $670.5 million, and aggregate unfunded commitments at closing of $25.1 million. Additionally, the Company received three full loan repayments totaling $147.4 million and received partial principal payments of $46.4 million across four loans, for total loan repayments of $193.8 million during the six months ended June 30, 2025.


	June 30, 2025							December 31, 2024
		Balance sheet portfolio			Total loan exposure(1)			Balance sheet portfolio			Total loan exposure(1)
Number of loans		49			49			45			45
Floating rate loans		99.7		%	99.7		%	99.7		%	99.7		%
Total loan commitment		$	3,899,345		$	3,899,345		$	3,412,016		$	3,412,016
Unpaid principal balance(2)		$	3,783,609		$	3,783,609		$	3,284,510		$	3,284,510
Unfunded loan commitments(3)		$	116,428		$	116,428		$	127,866		$	127,866
Amortized cost		$	3,774,686		$	3,774,686		$	3,278,588		$	3,278,588
Weighted average credit spread		3.5		%	3.5		%	3.7		%	3.7		%
Weighted average all-in yield(4)		8.0		%	8.0		%	8.3		%	8.3		%
Weighted average term to extended maturity (in years)(5)		2.7			2.7			2.4			2.4

(1)In certain instances, the Company creates structural leverage through the co-origination or non-recourse syndication of a senior loan interest to a third-party. In either case, the senior mortgage loan (i.e., the non-consolidated senior interest) is not included on the Company’s balance sheet. When the Company creates structural leverage through the co-origination or non-recourse syndication of a senior loan interest to a third-party, the Company retains on its balance sheet a mezzanine loan. Total loan exposure encompasses the entire loan portfolio the Company originated, acquired and financed. The Company had no non-consolidated senior interests as of June 30, 2025 and December 31, 2024. As of June 30, 2025, total loan exposure includes one fixed rate contiguous mezzanine loan.

(3)Unfunded loan commitments may be funded over the term of each loan, subject in certain cases to an expiration date or a force-funding date, primarily to finance property improvements or lease-related expenditures by the Company’s borrowers and to finance operating deficits during renovation and lease-up.

(4)As of June 30, 2025, all of the Company's floating rate loans were indexed to Term SOFR. In addition to credit spread, all-in yield includes the amortization of deferred origination fees, purchase price premium and discount if any, and accrual of both extension and exit fees. All-in yield for the total portfolio assumes Term SOFR as of June 30, 2025 for weighted average calculations.

(5)Extended maturity assumes all extension options are exercised by the borrower; provided, however, that the Company’s loans may be repaid prior to such date. As of June 30, 2025, based on the unpaid principal balance of the Company’s total loan exposure, 40.6% of the Company’s loans were subject to yield maintenance or other prepayment restrictions and 59.4% were open to repayment by the borrower without penalty.

The following tables present an overview of the Company’s loans held for investment portfolio by loan seniority (dollars in thousands):


	June 30, 2025
Loans held for investment, net	Outstanding principal		Unamortized premium (discount) and loan origination fees, net		Amortized cost
Senior loans(1)	$	3,783,609	$	(8,923)	$	3,774,686

Total	$	3,783,609	$	(8,923)	$	3,774,686
Allowance for credit losses					(66,957)
Loans held for investment, net					$	3,707,729


	December 31, 2024
Loans held for investment, net	Outstanding principal		Unamortized premium (discount) and loan origination fees, net		Amortized cost
Senior loans(1)	$	3,284,510	$	(5,922)	$	3,278,588

Total	$	3,284,510	$	(5,922)	$	3,278,588
Allowance for credit losses					(61,558)
Loans held for investment, net					$	3,217,030

________________________________


	Amortized cost		Allowance for credit losses		Carrying value












Balance as of December 31, 2024	$	3,278,588	$	(61,558)	$	3,217,030
Loans originated and acquired	665,743		—		665,743
Additional fundings	22,056		—		22,056
Accrued PIK interest	332		—		332
Amortization of origination fees and discounts	1,735		—		1,735
Collection of principal	(193,768)		—		(193,768)





Allowance for credit losses	—		(5,399)		(5,399)
Balance as of June 30, 2025	$	3,774,686	$	(66,957)	$	3,707,729

The Company evaluates all of its loans to assign risk ratings on a quarterly basis on a 5-point scale. As described in Note 2, the Company’s loans are rated “1” through “5,” from least risk to greatest risk, respectively. The Company generally assigns a risk rating of “3” to all loan investments upon origination or acquisition, except when specific circumstances warrant an exception.


	June 30, 2025
	Amortized cost by origination year
	2025		2024		2023		2022		2021		Prior		Total
Senior loans by internal risk ratings:
1	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2	—		62,767		—		—		—		—		62,767
3	666,044		471,392		196,158		699,890		1,116,893		442,607		3,592,984
4	—		—		—		—		—		118,935		118,935
5	—		—		—		—		—		—		—
Total senior loans	$	666,044	$	534,159	$	196,158	$	699,890	$	1,116,893	$	561,542	$	3,774,686
Senior loans:
Current-period realized loss on loan write-offs related to REO conversions	$	—	$	—	$	—	$	—	$	—	$	—	$	—


	December 31, 2024
	Amortized cost by origination year
	2024		2023		2022		2021		2020		Prior		Total
Senior loans by internal risk ratings:
1	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2	62,716		—		—		—		—		—		62,716
3	467,735		201,588		752,847		1,213,894		—		462,607		3,098,671
4	—		—		—		—		—		117,201		117,201
5	—		—		—		—		—		—		—
Total senior loans	$	530,451	$	201,588	$	752,847	$	1,213,894	$	—	$	579,808	$	3,278,588
Senior loans:
Current-period realized loss on loan write-offs related to REO conversions	$	—	$	—	$	(7,818)	$	(1,911)	$	—	$	—	$	(9,729)


Risk rating	June 30, 2025		December 31, 2024
1	$	—	$	—
2	62,767		62,716
3	3,592,984		3,098,671
4	118,935		117,201
5	—		—
Total	$	3,774,686	$	3,278,588
Allowance for credit losses	(66,957)		(61,558)
Carrying value	$	3,707,729	$	3,217,030
Weighted average risk rating(1)	3.0		3.0

The Company’s allowance for credit losses developed pursuant to ASC 326 reflects its current estimate of potential credit losses related to its loans held for investment portfolio as of June 30, 2025. As part of its allowance for credit losses, the Company maintains a separate allowance for credit losses related to unfunded loan commitments which is included in accrued expenses and other liabilities on the consolidated balance sheets. See Note 2 for additional details regarding the Company's accounting policies and estimation of its allowance for credit losses.


	For the Three Months Ended June 30, 2025
	Senior loans
Allowance for credit losses for loans held for investment:
Beginning balance at April 1, 2025	$	64,721
Allowance for credit losses, net	2,236

Subtotal	66,957

Allowance for credit losses on unfunded loan commitments:
Beginning balance at April 1, 2025	2,494
Reversal of credit losses, net	(675)
Subtotal	1,819
Total allowance for credit losses(1)	$	68,776


	For the Three Months Ended June 30, 2024
	Senior loans
Allowance for credit losses for loans held for investment:
Beginning balance at April 1, 2024	$	71,258
Reversal of credit losses, net	(4,410)

Subtotal	66,848

Allowance for credit losses on unfunded loan commitments:
Beginning balance at April 1, 2024	2,869
Reversal of credit losses, net	(127)
Subtotal	2,742
Total allowance for credit losses	$	69,590


	For the Six Months Ended June 30, 2025

	Senior loans
Allowance for credit losses for loans held for investment:
Beginning balance at January 1, 2025	$	61,558
Allowance for credit losses, net	5,399

Subtotal	66,957

Allowance for credit losses on unfunded loan commitments:
Beginning balance at January 1, 2025	2,415
Reversal of credit losses, net	(596)
Subtotal	1,819
Total allowance for credit losses(1)	$	68,776


	For the Six Months Ended June 30, 2024

	Senior loans
Allowance for credit losses for loans held for investment:
Beginning balance at January 1, 2024	$	67,092
Reversal of credit losses, net	(244)

Subtotal	66,848

Allowance for credit losses on unfunded loan commitments:
Beginning balance at January 1, 2024	2,679
Allowance for credit losses, net	63
Subtotal	2,742
Total allowance for credit losses	$	69,590

________________________________

(1)Excludes $0.6 million of allowance for credit losses on exit fees receivable related to the Company's loans held for investment portfolio. Such amounts are recorded within Accrued interest and fees receivable on the Company's consolidated balance sheet and Credit loss expense, net on the Company's consolidated statements of income and comprehensive income.


	June 30, 2025
	General reserve		Specific reserve		Total reserve
Allowance for credit losses:
Loans held for investment	$	66,957	$	—	$	66,957
Unfunded loan commitments	1,819		—		1,819
Total allowance for credit losses(1)	$	68,776	$	—	$	68,776
Total unpaid principal balance	$	3,783,609	$	—	$	3,783,609

	December 31, 2024
	General reserve		Specific reserve		Total reserve
Allowance for credit losses:
Loans held for investment	$	61,558	$	—	$	61,558
Unfunded loan commitments	2,415		—		2,415
Total allowance for credit losses(1)	$	63,973	$	—	$	63,973
Total unpaid principal balance	$	3,284,510	$	—	$	3,284,510

(1)Excludes $0.6 million and $0.2 million of allowance for credit losses on exit fees receivable related to the Company's loans held for investment portfolio as of June 30, 2025 and December 31, 2024, respectively. Such amounts are recorded within Accrued interest and fees receivable on the Company's consolidated balance sheet and Credit loss expense, net on the Company's consolidated statements of income and comprehensive income.

The Company’s allowance for credit losses is influenced by the size and maturity dates of its loans, loan quality, credit indicators including risk ratings, delinquency status, historical loss experience and other conditions influencing loss expectations, such as property valuation and reasonable and supportable forecasts of economic conditions.

During the three months ended June 30, 2025, the Company recorded an increase of $1.6 million to its allowance for credit losses. The increase to the Company's allowance for credit losses was due primarily to an increase of $4.0 million resulting from the Company's loan origination activity during the three months ended June 30, 2025, partially offset by (i) a decrease of $2.2 million resulting from full loan repayments and (ii) a net decrease of $0.3 million related to improved asset-level performance and changes to the macroeconomic assumptions employed in determining the general CECL reserve.

During the six months ended June 30, 2025, the Company recorded an increase of $4.8 million to its allowance for credit losses, increasing its CECL reserve for loans held for investment to $68.8 million as of June 30, 2025. For the six months ended June 30, 2025, the increase to the Company's allowance for credit losses was due primarily to (i) an increase of $4.0 million resulting from the Company's loan origination activity during the six months ended June 30, 2025, and (ii) a net increase of $3.5 million related to the impact of an uncertain macroeconomic environment and its potential impacts on the Company's loan portfolio, partially offset by a decrease of $2.7 million resulting from full loan repayments during the six months ended June 30, 2025.

During the three months ended June 30, 2024, the Company recorded a decrease of $4.5 million to its allowance for credit losses. The decrease to the Company's allowance for credit losses was due to (i) a decrease of $1.5 million resulting from full loan repayments and (ii) a net decrease of $3.0 million related to improved asset-level performance and changes to the macroeconomic assumptions employed in determining the general CECL reserve.

During the six months ended June 30, 2024, the Company recorded a decrease of $0.2 million, decreasing its allowance for credit losses to $69.6 million as of June 30, 2024. For the six months ended June 30, 2024, the decrease to the Company's allowance for credit losses was primarily due to a decrease of $2.7 million resulting from loan repayments during the six months ended June 30, 2024, partially offset by (i) an increase of $1.0 million resulting from the Company's loan origination activity during the six months ended June 30, 2024 and (ii) a net increase of $1.6 million related to macroeconomic assumptions employed in determining the general CECL reserve.

As of June 30, 2025 and December 31, 2024, none of the Company's first mortgage loans satisfied the CECL framework's criteria for individual assessment and the Company had no loans on non-accrual status or cost-recovery. As of June 30, 2025 and December 31, 2024, none of the Company's performing loans (full accrual status) had accrued interest income receivable 90 days or more past due.


			Days Outstanding as of June 30, 2025
	Current		Days: 30-59		Days: 60-89		Days: 90 or more		Total loans past due		Total loans
Loans receivable:
Senior loans	$	3,774,686	$	—	$	—	$	—	$	—	$	3,774,686

Total	$	3,774,686	$	—	$	—	$	—	$	—	$	3,774,686


			Days Outstanding as of December 31, 2024
	Current		Days: 30-59		Days: 60-89		Days: 90 or more		Total loans past due		Total loans
Loans receivable:
Senior loans	$	3,278,588	$	—	$	—	$	—	$	—	$	3,278,588

Total	$	3,278,588	$	—	$	—	$	—	$	—	$	3,278,588

The Company may amend or modify a loan depending on the loan’s specific facts and circumstances. These loan modifications typically include additional time for the borrower to refinance or sell the collateral property, adjustment or waiver of performance tests that are prerequisite to the extension of a loan maturity, modification of terms of interest rate cap agreements, and/or deferral of scheduled principal payments. In exchange for a modification, the Company often receives a partial repayment of principal, a short-term accrual of PIK interest for a portion of interest due, a cash infusion to replenish a loan's interest or capital improvement reserves, termination of all or a portion of the remaining unfunded loan commitment, additional call protection, and/or an increase in the loan coupon. During the six months ended June 30, 2025, none of the Company's loan modifications require disclosure pursuant to ASC 326. During the six months ended June 30, 2025, none of the Company's loan modifications were the result of the borrower experiencing financial difficulty.

As of June 30, 2025, the total amount of accrued PIK interest in the Company's loans held for investment portfolio was $0.7 million related to one loan. Total PIK interest of $0.3 million was recorded and deferred during the six months ended June 30, 2025.