v3.25.2
Real Estate Owned (Tables)
 6 Months Ended
Jun. 30, 2025
Real Estate Owned, Disclosure of Detailed Components [Abstract]  
Schedule of REO Assets and Liabilities
The following table presents the REO assets and liabilities (dollars in thousands):
June 30, 2025December 31, 2024
Assets
Cash$16,894 $13,195 
Real estate owned - Building and building improvements168,240 174,427 
Real estate owned - Land and land improvements54,845 80,328 
Real estate owned - Tenant improvements8,890 8,678 
Real estate owned231,975 263,433 
Accumulated depreciation(8,740)(7,029)
Real estate owned, net223,235 256,404 
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 
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(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.
(3)Included within Accrued expenses and other liabilities within the Company's consolidated balance sheets.
Schedule of Real Estate Owned, Revenue and Expenses
The following table presents the REO operations and related income (loss) (dollars in thousands):
Three Months EndedSix Months Ended
June 30, 2025June 30, 2024June 30, 2025June 30, 2024
Rental income
Minimum lease payments$7,385 $7,601 $15,031 $14,268 
Variable lease payments830 604 1,355 1,159 
Total rental income8,215 8,205 16,386 15,427 
Other revenue from REO16 76 2,124 76 
Revenue from real estate owned operations8,231 8,281 18,510 15,503 
Rental property operating expenses(1)
6,833 4,726 13,191 8,825 
Depreciation and amortization(2)
3,423 4,156 7,415 8,403 
Expenses from real estate owned operations10,256 8,882 20,606 17,228 
Net (loss) from REO$(2,025)$(601)$(2,096)$(1,725)
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(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.
Schedule of Amortization of Lease Intangibles
The following table presents the gross carrying amount and accumulated amortization of lease intangibles (dollars in thousands):
June 30, 2025December 31, 2024
Intangible assets:
In-place lease intangibles$25,165 $29,387 
Above-market lease intangibles2,670 3,982 
Leasing commissions2,132 2,088 
Total intangible assets29,967 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 liabilities4,311 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 
Schedule of Estimated Future Amortization
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):
YearIn-place lease intangiblesAbove-market lease intangiblesLeasing
commissions		Below-market lease intangibles
2025 (remaining)$1,421 $211 $151 $(351)
20262,192 420 274 (496)
20271,335 374 258 (300)
20281,286 368 237 (293)
2029892 110 227 (205)
2030544 58 219 (152)
Schedule of Estimated Future Amortization
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):
YearIn-place lease intangiblesAbove-market lease intangiblesLeasing
commissions		Below-market lease intangibles
2025 (remaining)$1,421 $211 $151 $(351)
20262,192 420 274 (496)
20271,335 374 258 (300)
20281,286 368 237 (293)
2029892 110 227 (205)
2030544 58 219 (152)
Schedule of Future Minimum Lease Payments 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):
YearFuture Minimum Rents
2025 (remaining)$5,241 
202610,302 
20279,690 
20288,173 
20295,529 
20308,591 
Thereafter57,924 
Total$105,450