As of June 30, 2025, assets and liabilities related to REO consisted of six properties: four multifamily properties, one located in each of Arlington Heights, IL and Chicago, IL; two located in San Antonio, TX; and two office properties, one located in each of Manhattan, NY, and Houston, TX. The Company accounted for these acquisitions as asset acquisitions. The Company acquired no REO properties during the three and six months ended June 30, 2025.

During the three and six months ended June 30, 2025, the Company sold two office properties. During May 2025, the Company sold an office property located in San Mateo, CA for net cash proceeds of $21.2 million and recognized a gain of $5.7 million, which is recorded within gain on sale of real estate owned, net on the consolidated statements of income and comprehensive income. During June 2025, the Company sold an office property in Orange, CA for net cash proceeds of $18.2 million and recognized a gain of $1.3 million, which is recorded within gain on sale of real estate owned, net on the consolidated statements of income and comprehensive income.

During June 2023, the Company obtained from a third party a $31.2 million first mortgage loan secured by the Houston, TX office property, which is classified as Mortgage loan payable, net on the Company's consolidated balance sheets. See Note 6 for details of the Mortgage loan payable.


	June 30, 2025		December 31, 2024
Assets
Cash	$	16,894	$	13,195
Real estate owned - Building and building improvements	168,240		174,427
Real estate owned - Land and land improvements	54,845		80,328

Real estate owned - Tenant improvements	8,890		8,678
Real estate owned	231,975		263,433
Accumulated depreciation	(8,740)		(7,029)
Real estate owned, net	223,235		256,404
In-place lease intangibles, net(1)	12,275		17,004
Above-market lease intangibles, net(1)	1,896		2,945
Leasing commissions, net(1)	1,884		1,935
Other assets, net(1)	8,397		9,481
Total assets	$	264,581	$	300,964
Liabilities
Mortgage loan payable, net(2)	$	30,766	$	30,695
Below-market lease intangibles, net(3)	2,141		2,495
Other liabilities(3)	5,765		7,377
Total liabilities	$	38,672	$	40,567

(1)Included within Other assets within the Company's consolidated balance sheets. Other assets, net includes $2.5 million and $3.8 million of cash proceeds from the Company's mortgage loan payable escrowed for tenant improvements and leasing costs, and other working capital balances as of June 30, 2025 and December 31, 2024, respectively.

(2)During the three and six months ended June 30, 2025, the Company incurred interest expense of $0.6 million and $1.3 million, which is included within Interest expense on the Company's consolidated statements of income and comprehensive income. During the three and six months ended June 30, 2024, the Company incurred interest expense of $0.6 million and $1.3 million, which is included within Interest expense on the Company's consolidated statements of income and comprehensive income.

Rental income primarily relates to the Company's acquired and newly executed tenant leases. These leases entitle the Company to receive contractual rent payments during the lease periods and in some instances tenant reimbursements for certain property operating expenses, including common area costs, insurance, utilities and real estate taxes. The Company elected the practical expedient to not separate the lease and non-lease components of the rent payments and accounts for these leases as operating leases.


	Three Months Ended				Six Months Ended
	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024
Rental income
Minimum lease payments	$	7,385	$	7,601	$	15,031	$	14,268
Variable lease payments	830		604		1,355		1,159
Total rental income	8,215		8,205		16,386		15,427
Other revenue from REO	16		76		2,124		76
Revenue from real estate owned operations	8,231		8,281		18,510		15,503
Rental property operating expenses(1)	6,833		4,726		13,191		8,825
Depreciation and amortization(2)	3,423		4,156		7,415		8,403
Expenses from real estate owned operations	10,256		8,882		20,606		17,228
Net (loss) from REO	$	(2,025)	$	(601)	$	(2,096)	$	(1,725)

(1)Excludes $0.6 million and $1.3 million of interest expense incurred during the three and six months ended June 30, 2025, which is included within Interest expense on the Company's consolidated statements of income and comprehensive income. Excludes $0.6 million and $1.3 million of interest expense incurred during the three and six months ended June 30, 2024, which is included within Interest expense on the Company's consolidated statements of income and comprehensive income.

(2)During the three and six months ended June 30, 2025, the Company incurred $2.0 million and $4.1 million of depreciation expense. During the three and six months ended June 30, 2024, the Company incurred $1.4 million and $2.8 million of depreciation expense.

For the six months ended June 30, 2025, the Company's capital expenditures were $1.4 million, as shown on the Company's consolidated statements of cash flows, which includes $0.03 million of accrued capital expenditures. For the six months ended June 30, 2024, the Company's capital expenditures were $3.2 million, as shown on the Company's consolidated statements of cash flows, which includes $0.2 million of accrued capital expenditures.


	June 30, 2025		December 31, 2024
Intangible assets:
In-place lease intangibles	$	25,165	$	29,387
Above-market lease intangibles	2,670		3,982
Leasing commissions	2,132		2,088
Total intangible assets	29,967		35,457
Accumulated amortization:
In-place lease intangibles	(12,890)		(12,383)
Above-market lease intangibles	(774)		(1,037)
Leasing commissions	(248)		(153)
Total accumulated amortization	(13,912)		(13,573)
Intangible assets, net	$	16,055	$	21,884

Intangible liabilities:
Below-market lease intangibles	$	4,311	$	4,311
Total intangible liabilities	4,311		4,311
Accumulated amortization:
Below-market lease intangibles	(2,170)		(1,816)
Total accumulated amortization	(2,170)		(1,816)
Intangible liabilities, net	$	2,141	$	2,495

The following table presents the estimated future amortization of the Company's intangibles for the remainder of 2025 and for each of the next five years (dollars in thousands):


Year	In-place lease intangibles		Above-market lease intangibles		Leasing commissions		Below-market lease intangibles
2025 (remaining)	$	1,421	$	211	$	151	$	(351)
2026	2,192		420		274		(496)
2027	1,335		374		258		(300)
2028	1,286		368		237		(293)
2029	892		110		227		(205)
2030	544		58		219		(152)

The weighted average amortization period for the in-place lease intangibles, above-market lease intangibles, leasing commissions, and below-market lease intangibles as of June 30, 2025, were 9.6 years, 6.9 years, 7.7 years, and 6.3 years, respectively.

Minimum rental amounts due under tenant leases are generally subject either to scheduled fixed increases or adjustments. The following table presents approximate future minimum rental income under non-cancelable operating leases, excluding variable lease revenue of tenant reimbursements, to be received over the next five years and thereafter as of June 30, 2025 and excludes leases at the Company's multifamily property as they are short term, generally 12 months or less (dollars in thousands):