Loans and Investments

6 Months Ended

Jun. 30, 2025

Our Structured Business loan and investment portfolio consists of ($ in thousands):


	June 30, 2025		Percent of Total		Loan Count	Wtd. Avg. Pay Rate (1)		Wtd. Avg. Remaining Months to Maturity (2)	Wtd. Avg. First Dollar LTV Ratio (3)		Wtd. Avg. Last Dollar LTV Ratio (4)
Bridge loans (5)	$	11,105,463	96	%	611	6.98	%	11.1	0	%	79	%
Mezzanine loans	250,858		2	%	61	7.78	%	50.7	53	%	82	%
Preferred equity investments	149,776		1	%	27	6.77	%	48.0	62	%	80	%
Construction - multifamily	100,070		<1 %		6	9.94	%	34.5	0	%	66	%
SFR permanent loans	3,068		<1 %		1	9.35	%	4.3	0	%	39	%
Total UPB	11,609,235		100	%	706	7.03	%	12.7	2	%	78	%
Allowance for credit losses	(243,278)
Unearned revenue	(32,934)
Loans and investments, net (6)	$	11,333,023

	December 31, 2024
Bridge loans (5)	$	10,893,106	96	%	688	6.89	%	11.6	0	%	80	%
Mezzanine loans	255,556		2	%	58	7.52	%	51.8	51	%	82	%
Preferred equity investments	148,845		1	%	27	6.42	%	53.9	62	%	79	%
Construction - multifamily	4,367		<1 %		2	9.97	%	20.8	0	%	42	%
SFR permanent loans	3,082		<1 %		1	9.36	%	10.3	0	%	40	%
Total UPB	11,304,956		100	%	776	6.90	%	13.1	2	%	80	%
Allowance for credit losses	(238,967)
Unearned revenue	(31,992)
Loans and investments, net (6)	$	11,033,997

________________________

(1)“Weighted Average Pay Rate” is a weighted average, based on the unpaid principal balance (“UPB”) of each loan in our portfolio, of the interest rate required to be paid as stated in the individual loan agreements. Certain loans and investments that require an accrual rate to be paid at maturity are not included in the weighted average pay rate as shown in the table.

(2)Including extension options, the weighted average remaining months to maturity at June 30, 2025 and December 31, 2024 was 20.6 and 22.7, respectively.

(3)The “First Dollar Loan-to-Value (“LTV”) Ratio” is calculated by comparing the total of our senior most dollar and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which we will absorb a total loss of our position.

(4)The “Last Dollar LTV Ratio” is calculated by comparing the total of the carrying value of our loan and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which we will initially absorb a loss.

(5)At June 30, 2025 and December 31, 2024, bridge loans included 364 and 423, respectively, of SFR loans with a total gross loan commitment of $4.45 billion and $4.18 billion, respectively, of which $2.53 billion and $1.99 billion, respectively, was funded.

(6)Excludes exit fee receivables of $44.3 million and $46.6 million at June 30, 2025 and December 31, 2024, respectively, which is included in other assets on the consolidated balance sheets.

Concentration of Credit Risk

We are subject to concentration risk in that, at June 30, 2025, the UPB related to 70 loans with 5 different borrowers represented 11% of total assets. At December 31, 2024, the UPB related to 83 loans with five different borrowers represented 10% of total assets. During both the three and six months ended June 30, 2025 and the year ended December 31, 2024, no single loan or investment represented more than

10% of our total assets and no single investor group generated over 10% of our revenue. See Note 18 for details on our concentration of related party loans and investments.

We assign a credit risk rating of pass, pass/watch, special mention, substandard or doubtful to each loan and investment, with a pass rating being the lowest risk and a doubtful rating being the highest risk. Each credit risk rating has benchmark guidelines that pertain to debt-service coverage ratios, LTV ratios, borrower strength, asset quality, payment status in accordance with current contractual terms, and funded cash reserves. Other factors such as guarantees, market strength, and remaining loan term and borrower equity are also reviewed and factored into determining the credit risk rating assigned to each loan. This metric provides a helpful snapshot of portfolio quality and credit risk. All portfolio assets are subject to, at a minimum, a thorough quarterly financial evaluation in which historical operating performance and forward-looking projections are reviewed; however, we maintain a higher level of scrutiny and focus on loans that we consider “high risk” and that possess deteriorating credit quality.

Generally speaking, given our typical loan profile, risk ratings of pass, pass/watch and special mention suggest that we expect the borrower to make both principal and interest payments according to the contractual terms of the current loan agreement or, we expect to recover our investment, including accrued interest, based on the current value of the collateral and/or financial strength of the guarantors. A risk rating of substandard indicates we have observed weaknesses in one or more of the loan's credit quality factors and we anticipate the loan may require a modification of some kind to avoid a loss of interest and/or principal. A risk rating of doubtful indicates we expect the loan to underperform over its term, there could be loss of interest and/or principal, and we may need to take action to protect our investment including foreclosing on the underlying collateral. Further, while the above are the primary guidelines used in determining a certain risk rating, subjective items such as the financial strength of guarantors, market strength, asset quality, or a borrower's ability to perform under modified loan terms may result in a rating that is higher or lower than might be indicated by any risk rating matrix.

A summary of the loan portfolio’s internal risk ratings and LTV ratios by asset class at June 30, 2025, and charge-offs recorded for the six months ended June 30, 2025 is as follows ($ in thousands):


	UPB by Origination Year												Total			Wtd. Avg. First Dollar LTV Ratio		Wtd. Avg. Last Dollar LTV Ratio
Asset Class / Risk Rating	2025		2024		2023		2022		2021		Prior
Multifamily:
Pass	$	431,196	$	56,945	$	32,369	$	78,944	$	9,903	$	26,795	$	636,152
Pass/Watch	313,012		497,269		295,934		779,822		674,877		159,810		2,720,724
Special Mention	—		202,814		35,688		2,048,287		2,270,295		150,079		4,707,163
Substandard	—		11,963		—		90,534		453,853		—		556,350
Doubtful	—		9,460		—		148,162		82,382		24,565		264,569
Total Multifamily	$	744,208	$	778,451	$	363,991	$	3,145,749	$	3,491,310	$	361,249	$	8,884,958		3	%	83	%
Single-Family Rental:	Percentage of portfolio												77		%
Pass	$	45,975	$	9,869	$	—	$	—	$	—	$	—	$	55,844
Pass/Watch	404,415		744,505		502,436		422,438		114,016		41,885		2,229,695
Special Mention	1,025		56,124		63,759		119,733		8,729		—		249,370
Total Single-Family Rental	$	451,415	$	810,498	$	566,195	$	542,171	$	122,745	$	41,885	$	2,534,909		0	%	61	%
Land:	Percentage of portfolio												22		%
Pass	$	—	$	4,519	$	—	$	—	$	—	$	—	$	4,519
Pass/Watch	—		—		—		—		—		2,291		2,291

Substandard	—		—		—		—		—		127,928		127,928
Total Land	$	—	$	4,519	$	—	$	—	$	—	$	130,219	$	134,738		0	%	96	%
Office:	Percentage of portfolio												1		%
Pass/Watch	$	—	$	—	$	—	$	—	$	—	$	33,410	$	33,410

Total Office	$	—	$	—	$	—	$	—	$	—	$	33,410	$	33,410		0	%	88	%
Retail:	Percentage of portfolio												< 1%


Substandard	$	—	$	—	$	—	$	—	$	—	$	18,600	$	18,600
Doubtful	—		—		—		—		—		920		920
Total Retail	$	—	$	—	$	—	$	—	$	—	$	19,520	$	19,520		0	%	88	%
Commercial:	Percentage of portfolio												< 1%
Doubtful	$	—	$	—	$	—	$	—	$	—	$	1,700	$	1,700
Total Commercial	$	—	$	—	$	—	$	—	$	—	$	1,700	$	1,700		0	%	100	%
	Percentage of portfolio												< 1%
Grand Total	$	1,195,623	$	1,593,468	$	930,186	$	3,687,920	$	3,614,055	$	587,983	$	11,609,235		2	%	78	%

Charge-offs	$	—	$	3,000	$	—	$	5,669	$	10,474	$	—	$	19,143

A summary of the loan portfolio’s internal risk ratings and LTV ratios by asset class at December 31, 2024, and charge-offs recorded during 2024 is as follows ($ in thousands):


	UPB by Origination Year												Total			Wtd. Avg. First Dollar LTV Ratio		Wtd. Avg. Last Dollar LTV Ratio
Asset Class / Risk Rating	2024		2023		2022		2021		2020		Prior
Multifamily:
Pass	$	308,228	$	41,713	$	69,000	$	10,205	$	2,010	$	24,823	$	455,979
Pass/Watch	357,724		308,353		1,012,593		462,709		119,860		113,100		2,374,339
Special Mention	79,618		31,344		2,340,782		2,958,064		—		94,529		5,504,337
Substandard	—		658		159,100		206,277		—		21,700		387,735
Doubtful	12,460		—		193,850		159,379		14,800		9,765		390,254
Total Multifamily	$	758,030	$	382,068	$	3,775,325	$	3,796,634	$	136,670	$	263,917	$	9,112,644		2	%	83	%
Single-Family Rental:	Percentage of portfolio												81		%
Pass	$	246,234	$	32,875	$	10,683	$	—	$	—	$	—	$	289,792
Pass/Watch	422,063		410,419		356,567		94,503		41,848		—		1,325,400
Special Mention	—		31,043		139,125		107,155		87,967		—		365,290
Doubtful	5,704		10,786		—		—		—		—		16,490
Total Single-Family Rental	$	674,001	$	485,123	$	506,375	$	201,658	$	129,815	$	—	$	1,996,972		0	%	61	%
Land:	Percentage of portfolio												18		%
Pass	$	7,282	$	—	$	—	$	—	$	—	$	—	$	7,282

Special Mention	—		—		—		—		3,500		—		3,500
Substandard	—		—		—		—		—		127,928		127,928
Total Land	$	7,282	$	—	$	—	$	—	$	3,500	$	127,928	$	138,710		0	%	96	%
Office:	Percentage of portfolio												1		%
Special Mention	$	—	$	—	$	—	$	—	$	35,410	$	—	$	35,410

Total Office	$	—	$	—	$	—	$	—	$	35,410	$	—	$	35,410		0	%	94	%
Retail:	Percentage of portfolio												< 1%

Substandard	$	—	$	—	$	—	$	—	$	—	$	19,520	$	19,520
Total Retail	$	—	$	—	$	—	$	—	$	—	$	19,520	$	19,520		0	%	88	%
Commercial:	Percentage of portfolio												< 1%
Doubtful	$	—	$	—	$	—	$	—	$	—	$	1,700	$	1,700
Total Commercial	$	—	$	—	$	—	$	—	$	—	$	1,700	$	1,700		0	%	100	%
	Percentage of portfolio												< 1%
Grand Total	$	1,439,313	$	867,191	$	4,281,700	$	3,998,292	$	305,395	$	413,065	$	11,304,956		2	%	80	%

Charge-offs	$	464	$	—	$	4,077	$	7,668	$	—	$	—	$	12,209

Geographic Concentration Risk

At June 30, 2025, underlying properties in Texas and Florida represented 23% and 16%, respectively, of the outstanding balance of our loan and investment portfolio. At December 31, 2024, underlying properties in Texas and Florida represented 23% and 17%, respectively, of the outstanding balance of our loan and investment portfolio. No other states represented 10% or more of the total loan and investment portfolio.

Allowance for Credit Losses

A summary of the changes in the allowance for credit losses is as follows (in thousands):


	Three Months Ended June 30, 2025
	Multifamily		Land		Single-Family Rental		Retail		Commercial		Office		Total
Allowance for credit losses:
Beginning balance	$	150,911	$	78,000	$	6,524	$	3,293	$	1,700	$	509	$	240,937
Provision for credit losses (net of recoveries)	16,552		190		788		—		—		(46)		17,484
Charge-offs (1)	(15,143)		—		—		—		—		—		(15,143)
Ending balance	$	152,320	$	78,190	$	7,312	$	3,293	$	1,700	$	463	$	243,278

	Three Months Ended June 30, 2024
Allowance for credit losses:
Beginning balance	$	125,999	$	78,120	$	2,737	$	3,293	$	1,700	$	93	$	211,942
Provision for credit losses (net of recoveries)	25,849		330		1,176		—		—		114		27,469
Charge-offs	(488)		—		—		—		—		—		(488)
Ending balance	$	151,360	$	78,450	$	3,913	$	3,293	$	1,700	$	207	$	238,923

	Six Months Ended June 30, 2025
Allowance for credit losses:
Beginning balance	$	148,139	$	78,130	$	7,524	$	3,293	$	1,700	$	181	$	238,967
Provision for credit losses (net of recoveries)	23,324		60		(212)		—		—		282		23,454
Charge-offs (2)	(19,143)		—		—		—		—		—		(19,143)
Ending balance	$	152,320	$	78,190	$	7,312	$	3,293	$	1,700	$	463	$	243,278

	Six Months Ended June 30, 2024
Allowance for credit losses:
Beginning balance	$	110,847	$	78,058	$	1,624	$	3,293	$	1,700	$	142	$	195,664
Provision for credit losses (net of recoveries)	42,501		392		2,289		—		—		65		45,247
Charge-offs	(1,988)		—		—		—		—		—		(1,988)
Ending balance	$	151,360	$	78,450	$	3,913	$	3,293	$	1,700	$	207	$	238,923

________________________

(1)Represents the allowance for credit losses on 2 multifamily bridge loans that were charged-off in connection with the foreclosure of the underlying collateral as real estate owned ("REO") assets at fair value.

(2)Represents the allowance for credit losses on 3 multifamily bridge loans and a multifamily mezzanine loan that were charged-off in connection with the foreclosure of the underlying collateral as REO assets at fair value.

The additional provision for credit losses during the three and six months ended June 30, 2025 was primarily attributable to specifically impaired multifamily loans, and to a lesser extent a weakening in the macroeconomic outlook of the commercial real estate market. Our estimate of allowance for credit losses on our structured portfolio, including related unfunded loan commitments, was based on a reasonable and supportable forecast period that reflects recent observable data, including price indices for commercial real estate, unemployment rates, and interest rates.

The expected credit losses over the contractual period of our loans also include the obligation to extend credit through our unfunded loan commitments. Estimates of current expected credit losses (“CECL”) for unfunded loan commitments are adjusted quarterly and correspond with the associated outstanding loans. At June 30, 2025 and December 31, 2024, we had outstanding unfunded commitments of $2.22 billion and $2.20 billion, respectively, that we are obligated to fund as borrowers meet certain requirements. The outstanding unfunded commitments are predominantly related to our SFR build-to-rent ("BTR") business.

At June 30, 2025 and December 31, 2024, accrued interest receivable related to our loans totaling $176.3 million and $154.4 million, respectively, was excluded from the estimate of credit losses, is subject to our revenue recognition policy and is included in other assets on the consolidated balance sheets. During the three and six months ended June 30, 2025, we wrote-off $4.3 million and $7.6 million, respectively, of interest receivable that was previously accrued.

All of our structured loans and investments are secured by real estate assets or by interests in real estate assets, and, as such, the measurement of credit losses may be based on the difference between the fair value of the underlying collateral and the carrying value of the assets as of the period end. A summary of our specific reserve loans considered impaired by asset class is as follows ($ in thousands):


	June 30, 2025
Asset Class	UPB (1)		Carrying Value		Allowance for Credit Losses		Wtd. Avg. First Dollar LTV Ratio		Wtd. Avg. Last Dollar LTV Ratio
Multifamily	$	462,354	$	452,304	$	61,787	0	%	99	%
Land	134,215		127,868		77,869		0	%	99	%

Retail	19,520		15,068		3,293		0	%	87	%
Commercial	1,700		1,700		1,700		0	%	100	%
Total	$	617,789	$	596,940	$	144,649	0	%	99	%

	December 31, 2024
Multifamily	$	456,261	$	444,400	$	60,887	0	%	99	%
Land	134,215		127,868		77,869		0	%	99	%
Retail	19,520		15,068		3,293		0	%	87	%
Commercial	1,700		1,700		1,700		0	%	100	%
Total	$	611,696	$	589,036	$	143,749	0	%	99	%

________________________

(1)Represents the UPB of 27 impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class at both June 30, 2025 and December 31, 2024.

Non-performing Loans

Loans are classified as non-performing once the contractual payments exceed 60 days past due. Income from non-performing loans is generally recognized on a cash basis when it is received. Full income recognition will resume when the loan becomes contractually current, and performance has recommenced. At June 30, 2025, 19 loans with an aggregate net carrying value of $424.7 million, net of loan loss reserves of $36.4 million, were classified as non-performing and, at December 31, 2024, 26 loans with an aggregate net carrying value of $598.9 million, net of related loan loss reserves of $23.8 million, were classified as non-performing.

A summary of our non-performing loans by asset class is as follows (in thousands):


	June 30, 2025				December 31, 2024
	UPB		Carrying Value		UPB		Carrying Value
Multifamily	$	469,168	$	458,481	$	649,227	$	620,072
Commercial	1,700		1,700		1,700		1,700
Retail	920		910		920		910
Total	$	471,788	$	461,091	$	651,847	$	622,682

At both June 30, 2025 and December 31, 2024, we had no loans contractually past due greater than 60 days that are still accruing interest.

Other Non-accrual Loans

In this challenging economic environment, we have been experiencing late and partial payments on certain loans in our structured portfolio. Therefore, for loans that are 60 days past due or less, if we have determined there is reasonable doubt about collectability of all principal and interest, we classify those loans as non-accrual and recognize interest income only when cash is received. The table below is a summary of those loans that are 60 days past due or less that we have classified as non-accrual, and changes to those loans for the period presented (in thousands).


	Three Months Ended June 30, 2025		Six Months Ended June 30, 2025
Beginning balance (5 and 9 multifamily bridge loans)	$	142,823	$	167,428
Loans that progressed to greater than 60 days past due	—		(82,290)
Loans modified or paid off (1)	(47,675)		(86,165)
Loans transferred to REO	(48,500)		(48,500)
Additional loans that are now less than 60 days past due experiencing late and partial payments	10,264		106,439
Ending balance (3 multifamily bridge loans)	$	56,912	$	56,912

	Three Months Ended June 30, 2024		Six Months Ended June 30, 2024
Beginning balance (12 and 24 multifamily bridge loans)	$	489,438	$	956,917
Loans that progressed to greater than 60 days past due	(263,990)		(438,850)
Loans modified or paid off (1)	(138,548)		(851,470)
Additional loans that are now less than 60 days past due experiencing late and partial payments	281,038		701,341
Ending balance (14 multifamily bridge loans)	$	367,938	$	367,938

________________________

(1)The modifications included bringing the loans current by paying past due interest owed (see Loan Modifications section below).

We recorded interest income on non-performing and other non-accrual loans of $4.1 million and $9.9 million during the three and six months ended June 30, 2025, respectively, and $7.9 million and $16.6 million during the three and six months ended June 30, 2024, respectively.

In addition, we have six loans with a carrying value totaling $121.4 million at June 30, 2025, that are collateralized by a land development project. The loans do not carry a current pay rate of interest, however, five of the loans with a carrying value totaling $112.1 million entitle us to a weighted average accrual rate of interest of 9.95%. In 2008, we suspended the recording of the accrual rate of interest on these loans, as they were impaired and we deemed the collection of this interest to be doubtful. At both June 30, 2025 and December 31, 2024, we had a cumulative allowance for credit losses of $71.4 million related to these loans. The loans are subject to certain risks associated with a development project including, but not limited to, availability of construction financing, increases in projected construction costs, demand for the development’s outputs upon completion of the project, and litigation risk. Additionally, these loans were not classified as non-performing as the borrower is compliant with all of the terms and conditions of the loans.

Loan Modifications

We may agree to amend or modify loans to certain borrowers experiencing financial difficulty based on specific facts and circumstances in order to improve long-term collectability efforts and avoid foreclosure and repossession of the underlying collateral. The loan modifications to borrowers experiencing financial difficulty may include a delay in payments, including payment deferrals, term extensions, principal forgiveness, interest rate reductions, or a combination thereof. We record interest on modified loans on an accrual basis to the extent the modified loan is contractually current and we believe it is ultimately collectible. The allowance for credit losses on loan modifications is measured using the same method as all other loans held for investment.

As part of the modifications of each of these loans, we generally expect borrowers to invest additional capital to recapitalize their projects, which the vast majority have funded in the form of either, or a combination of: (1) reallocation of and/or additional deposits into interest, renovation and/or general reserves; (2) the purchase of a new rate cap; (3) a principal paydown of the loan; and (4) bringing any delinquent loans current by paying past due interest owed.

The following table represents the UPB of loan modifications, as of the modification date, made to borrowers experiencing financial difficulty during the three months ended June 30, 2025 (in thousands):


Asset Class	Payment Deferrals With/Without Term Extensions (1)		Rate Reductions With/Without Term Extensions (2)		Total (3)(4)(5)
Multifamily	$	144,905	$	107,000	$	251,905

(1)These loans were modified to a weighted average pay rate and deferred rate of 5.50% and 2.78%, respectively, at June 30, 2025. A portion of these loans with a total UPB of $116.5 million were also modified to extend the weighted average term by 19 months. These modifications also include loans with a total UPB of $38.1 million in which the pay rate increases from time-to-time throughout the loans maturities.

(2)These loans were modified to reduce the interest rate to a weighted average pay rate and deferred rate of 5.97% and 0.56%, respectively, and to extend the weighted average term by 23 months.

(3)The total UPB of the loan modifications made during the three months ended June 30, 2025 was $249.9 million at June 30, 2025 and represented 2.2% of our total Structured Business loans and investments portfolio at June 30, 2025.

(4)At June 30, 2025, a modified loan with a UPB of $25.6 million has a specific reserve of $2.2 million.

(5)Includes loans with a total UPB of $136.1 million which were previously modified. Using the SOFR rate at June 30, 2025, these loans were modified from a weighted average pay rate and deferred rate of 6.47% and 1.65%, respectively, to a weighted average pay rate and deferred rate of 5.18% and 2.28%, respectively.

The following table represents the UPB of loan modifications, as of the modification date, made to borrowers experiencing financial difficulty during the six months ended June 30, 2025 (in thousands):


Asset Class	Payment Deferrals With/Without Term Extensions (1)		Rate Reductions With/Without Term Extensions (2)		Other (3)		Total (4)(5)(6)
Multifamily	$	994,270	$	107,000	$	83,975	$	1,185,245
Single-Family Rental	—		—		16,490		16,490
Total UPB	$	994,270	$	107,000	$	100,465	$	1,201,735

________________________

(1)These loans were modified to a weighted average pay rate and deferred rate of 5.23% and 2.19%, respectively, at June 30, 2025. A portion of these loans with a total UPB of $225.2 million were also modified to extend the weighted average term by 19.3 months. These modifications also include loans with a total UPB of $508.4 million in which the pay rate increases from time-to-time throughout the loans maturities.

(2)These loans were modified to reduce the interest rate to a weighted average pay rate and deferred rate of 5.97% and 0.56%, respectively, and to extend the weighted average term by 23 months.

(3)These loan modifications included amending certain terms, such as reallocating and/or replenishment of reserves, providing for a temporary and conditional forbearance of foreclosure and temporarily delaying past due interest payments.

(4)The total UPB of the loan modifications made during the six months ended June 30, 2025 was $1.20 billion at June 30, 2025 and represented 10.60% of our total Structured Business loans and investments portfolio at June 30, 2025.

(5)At June 30, 2025, modified loans with a UPB of $51.1 million have specific reserves totaling $7.4 million.

(6)Includes loans with a total UPB of $520.1 million which were previously modified. Using the SOFR rate at June 30, 2025, these loans were modified from a weighted average pay rate and deferred rate of 6.71% and 1.25%, respectively, to a weighted average pay rate and deferred rate of 4.69% and 3.10%, respectively.


Asset Class	Payment Deferrals With/Without Term Extensions (1)		Term Extensions (2)		Other (4)		Total (5)(6)
Multifamily	$	324,055	$	215,405	$	119,792	$	659,252
Single-Family Rental	74,078		—		—		74,078
Total UPB	$	398,133	$	215,405	$	119,792	$	733,330

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(1)These loans were modified to a weighted average pay rate and deferred rate of 7.16% and 2.15%, respectively, at June 30, 2024. A portion of these loans with a total UPB of $328.3 million were also modified to extend the weighted average term by 13.1 months.

(2)These loans were modified to extend the weighted average term by 11.5 months.

(3)These loan modifications included amending certain terms, such as reallocating and/or replenishment of reserves.

(4)The total UPB of the loan modifications made during the three months ended June 30, 2024 was $732.3 million at June 30, 2024 and represented 6.2% of our total Structured Business loans and investments portfolio at June 30, 2024.

(5)At June 30, 2024, modified loans with a total UPB of $84.6 million have specific reserves totaling $10.8 million.


Asset Class	Payment Deferrals With/Without Term Extensions (1)		Term Extensions (2)		Rate Reduction Without Term Extension (3)		Other (4)		Total (5)(6)
Multifamily	$	1,395,124	$	671,953	$	18,400	$	337,642	$	2,423,119
Single-Family Rental	74,078		—		—		—		74,078
Total UPB	$	1,469,202	$	671,953	$	18,400	$	337,642	$	2,497,197

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(1)These loans were modified to a weighted average pay rate and deferred rate of 7.01% and 2.13%, respectively, at June 30, 2024. A portion of these loans with a total UPB of $999.3 million were also modified to extend the weighted average term by 19.8 months.

(2)These loans were modified to extend the weighted average term by 10.0 months.

(3)This loan was modified to reduce the weighted average interest rate by 0.72%.

(4)These loan modifications included amending certain terms, such as reallocating and/or replenishment of reserves.

(5)The total UPB of the loan modifications made during the six months ended June 30, 2024 was $2.47 billion at June 30, 2024 and represented 20.8% of our total Structured Business loans and investments portfolio at June 30, 2024.

(6)At June 30, 2024, modified loans with a total UPB of $172.7 million have specific reserves totaling $27.8 million.

During the three and six months ended June 30, 2025, we recorded $1.9 million and $5.7 million, respectively, of deferred interest on the loans that we modified during 2025 and $8.3 million and $17.4 million, respectively, for loans previously modified. During the three and six months ended June 30, 2024, we recorded $7.3 million and $10.0 million, respectively, of deferred interest on the loans that we modified during 2024 and $0.8 million and $1.1 million, respectively, for loans previously modified. At June 30, 2025 and December 31, 2024, we have recorded deferred interest totaling $80.5 million and $61.3 million, respectively, on all modified loans to borrowers experiencing financial difficulty, which is included in other assets on the consolidated balance sheets.

At June 30, 2025 and December 31, 2024, we had future funding commitments on modified loans with borrowers experiencing financial difficulty of $28.7 million and $56.4 million, respectively, which are generally subject to performance covenants that must be met by the borrower to receive funding.

All loan modifications completed in the past 12 months were performing pursuant to their contractual terms at June 30, 2025, except for seven loans with a total UPB of $251.2 million, which includes five loans with a total UPB of $149.4 million that were modified to provide temporary rate relief through a pay and accrual feature. Since these loans are not performing pursuant to their modified terms, these loans are classified as non-accrual loans. Two of these loans with a UPB of $61.9 million have a specific loan loss reserve of $10.2

million. The remaining five loans with a total UPB of $189.4 million have no specific reserves as the estimated fair value of the properties exceeded our carrying value at June 30, 2025.

There were no other material loan modifications, refinancings and/or extensions during the three and six months ended June 30, 2025 and 2024 for borrowers experiencing financial difficulty.

Loan Resolutions

In June 2025, we exercised our right to foreclose on three properties in San Antonio, Texas that were the underlying collateral for a bridge loan with a UPB of $77.7 million, an interest rate of 5.25% with a SOFR floor of 0.50%, and a net carrying value of $66.6 million, which includes loan loss reserves of $3.5 million. At foreclosure, we recorded an additional loss of $5.9 million to the provision for credit losses on the consolidated statements of income and charged-off the $9.4 million loan loss reserve. We simultaneously sold the properties for $65.0 million to a new borrower and provided a $65.0 million bridge loan with an interest rate of SOFR plus 2.00% for years one and two, and SOFR plus 3.00% for year three, subject to SOFR floors of 4.25%, 5.25% and 6.25% in years one, two and three, respectively. The new loan was deemed to be a significant financing component of the transaction and, as a result, we recorded a loss and corresponding liability of $0.8 million as an adjustment to the purchase price, which will be accreted into interest income over the life of the loan.

In April 2025, we exercised our right to foreclose on two properties in Austin, Texas that were the underlying collateral for a non-performing bridge loan with a UPB of $21.2 million, an interest rate of SOFR plus 4.00% with a SOFR floor of 0.25%, and a net carrying value of $21.7 million. At foreclosure, we recorded an additional loss of $1.0 million to the provision for credit losses on the consolidated statements of income. We sold the properties in June 2025 for $20.7 million to a new borrower and provided a $19.2 million bridge loan with an interest rate of SOFR plus 2.00% in year one and SOFR plus 3.00% in year two. The new loan was deemed to be a significant financing component of the transaction and, as a result, we recorded a loss and corresponding liability of $0.1 million as an adjustment to the purchase price, which will be accreted into interest income over the life of the loan.

In April 2025, we exercised our right to foreclose on two properties in Orange Park, Florida that were the underlying collateral for a non-performing bridge loan with a UPB of $17.0 million, an interest rate of SOFR plus 4.38% with a SOFR floor of 2.46% and a net carrying value of $15.7 million. At foreclosure, we recorded an additional loss of $0.3 million to the provision for credit losses on the consolidated statements of income. We sold the properties in June 2025 for $15.4 million to a new borrower and provided a $14.8 million bridge loan with an interest rate of SOFR plus 1.50%. The new loan was deemed to be a significant financing component of the transaction and, as a result, we recorded a loss and corresponding liability of $0.6 million as an adjustment to the purchase price, which will be accreted into interest income over the life of the loan.

In the fourth quarter of 2024, we exercised our right to foreclose on two properties in Houston, Texas, that were the underlying collateral for two bridge loans with an aggregate UPB of $73.3 million, a weighted average interest rate of SOFR plus 3.29%, with a weighted average SOFR floor of 0.68%, and an aggregate net carrying value of $56.5 million, which includes loan loss reserves totaling $9.0 million and holdback reserves totaling $8.2 million. At foreclosure, we recorded a $7.7 million loan loss recovery and charged-off the remaining loan loss reserves of $1.3 million. Additionally, we simultaneously sold both properties for $67.6 million to a new borrower and provided two new bridge loans totaling $67.6 million with a weighted average fixed interest rate of 4.25% for the first two years and 5.75% in the third year. The new loans were deemed to be a significant financing component of the transaction and, as a result, we recorded a loss and corresponding liability totaling $5.0 million as an adjustment to the purchase price, which will be accreted into interest income over the life of the loan. The gains and losses of this transaction were recorded through the provision for credit losses (net of recoveries) on the consolidated statements of income.

In July 2024, we exercised our right to foreclose on a property in Waco, Texas, that was the underlying collateral for a non-performing bridge loan with a UPB of $12.7 million, an interest rate of SOFR plus 3.75%, with a SOFR floor of 0.10%, and a net carrying value of $11.3 million, which was net of a $1.5 million loan loss reserve. At foreclosure, we recorded a $1.0 million loan loss recovery and charged-off the remaining loan loss reserve. Additionally, we simultaneously sold the property for $12.3 million to a new borrower and provided a new $12.3 million bridge loan with an interest rate of SOFR, with a SOFR floor of 5.25%, which was deemed to be a significant financing component of the transaction. As a result, we recorded a loss and corresponding liability of $1.0 million as an adjustment to the purchase price which will be accreted into interest income over the life of the loan. The gains and losses of this transaction were recorded through the provision for credit losses (net of recoveries).

In July 2024, we exercised our right to foreclose on a property in Savannah, Georgia, that was the underlying collateral for a non-performing bridge loan with a UPB of $7.3 million, an interest rate of SOFR plus 3.75%, with a SOFR floor of 0.10%, and a net carrying value of $6.6 million, which was net of a $0.8 million loan loss reserve. At foreclosure, we recorded a $0.8 million loan loss recovery and a gain of $0.3 million. Additionally, we simultaneously sold the property for $7.7 million to a new borrower and provided a new $7.3 million bridge loan with a fixed pay rate of 4.00% and a fixed accrual rate of 2.00% that is deferred to payoff, which was deemed to be a significant financing component of the transaction. As a result, we recorded a loss and corresponding liability of $0.5 million as an

adjustment to the purchase price which will be accreted into interest income over the life of the loan. The gains and losses of this transaction were recorded through the provision for credit losses (net of recoveries).

In April 2024, we exercised our right to foreclose on a group of properties in Houston, Texas, that were the underlying collateral for a bridge loan with a UPB of $100.3 million. We simultaneously sold the properties for $101.3 million to a newly formed entity, which was initially capitalized with $15.0 million of equity and a new $95.3 million bridge loan that we provided at SOFR plus 3.00%. At June 30, 2025, total equity invested was $21.2 million and is made up of $9.4 million from AWC Real Estate Opportunity Partners I LP ("AWC”), a fund in which we have a 46% noncontrolling limited partnership interest (see Note 8 for details) and $11.8 million from multiple independent ownership groups. AWC and one of the other equity members are the co-managing members of the entity that owns the real estate. We did not record a loss on the original bridge loan and received all past due interest owed.

See Note 9 for additional loan resolution details.

Interest Reserves

Given the transitional nature of some of our real estate loans, we may require funds to be placed into an interest reserve as required by the contracts to cover debt service costs. At June 30, 2025 and December 31, 2024, we had total interest reserves of $256.7 million and $215.4 million, respectively, on 508 loans and 589 loans, respectively, with a total UPB of $8.34 billion and $8.65 billion, respectively.