BORROWINGS (Tables)
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6 Months Ended |
Jun. 30, 2025 |
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| Debt Disclosure [Abstract] |
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| Information with respect to borrowings |
Certain information with respect to the Company’s borrowings is summarized in the following table (dollars in thousands, except amounts in the footnotes):
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Principal Outstanding |
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Unamortized Issuance Costs and Discounts |
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Outstanding Borrowings |
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Weighted Average Borrowing Rate |
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Weighted Average Remaining Maturity |
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Value of Collateral |
At June 30, 2025 |
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|
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CRE - term reinvestment financing facility |
|
$888,838 |
|
$3,174 |
|
$885,664 |
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6.06% |
|
4.8 years |
|
$1,192,073 |
Senior secured financing facility |
|
63,099 |
|
1,824 |
|
61,275 |
|
8.10% |
|
2.6 years |
|
165,553 |
CRE - term warehouse financing facilities |
|
82,961 |
|
894 |
|
82,067 |
|
6.55% |
|
0.3 years |
|
119,084 |
Mortgages payable |
|
80,113 |
|
537 |
|
79,576 |
|
9.17% |
|
5.7 years |
|
119,501 |
5.75% Senior Unsecured Notes |
|
150,000 |
|
834 |
|
149,166 |
|
5.75% |
|
1.1 years |
|
— |
Unsecured junior subordinated debentures |
|
51,548 |
|
— |
|
51,548 |
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8.50% |
|
11.2 years |
|
— |
Total |
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$1,316,559 |
|
$7,263 |
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$1,309,296 |
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6.44% |
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4.3 years |
|
$1,596,211 |
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Principal Outstanding |
|
Unamortized Issuance Costs and Discounts |
|
Outstanding Borrowings |
|
Weighted Average Borrowing Rate |
|
Weighted Average Remaining Maturity |
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Value of Collateral |
At December 31, 2024 |
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ACR 2021-FL1 Senior Notes |
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$472,507 |
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$660 |
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$471,847 |
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6.11% |
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11.5 years |
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$599,927 |
ACR 2021-FL2 Senior Notes |
|
392,571 |
|
1,614 |
|
390,957 |
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6.47% |
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12.1 years |
|
525,571 |
Senior secured financing facility |
|
63,099 |
|
2,189 |
|
60,910 |
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8.22% |
|
3.1 years |
|
162,578 |
CRE - term warehouse financing facilities (1) |
|
158,266 |
|
1,527 |
|
156,739 |
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7.02% |
|
1.3 years |
|
257,012 |
Mortgages payable |
|
80,113 |
|
557 |
|
79,556 |
|
9.25% |
|
5.7 years |
|
119,509 |
5.75% Senior Unsecured Notes |
|
150,000 |
|
1,186 |
|
148,814 |
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5.75% |
|
1.6 years |
|
— |
Unsecured junior subordinated debentures |
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51,548 |
|
— |
|
51,548 |
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8.67% |
|
11.7 years |
|
— |
Total |
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$1,368,104 |
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$7,733 |
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$1,360,371 |
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6.66% |
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8.7 years |
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$1,664,597 |
(1)Principal outstanding includes accrued interest payable of $435,000 at December 31, 2024.
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| Senior secured warehouse financing facilities and mortgage payable |
The following table sets forth certain information with respect to these arrangements (dollars in thousands, except amounts in the footnotes):
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June 30, 2025 |
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December 31, 2024 |
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Outstanding Borrowings |
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Value of Collateral |
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Number of Positions as Collateral |
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Weighted Average Interest Rate |
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Outstanding Borrowings |
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Value of Collateral |
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Number of Positions as Collateral |
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|
Weighted Average Interest Rate |
CRE - Term Reinvestment Financing Facility |
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JPMorgan Chase Bank, N.A. (1) |
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$ |
885,664 |
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$ |
1,192,073 |
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|
39 |
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6.06% |
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$ |
— |
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$ |
— |
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— |
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—% |
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Senior Secured Financing Facility |
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Massachusetts Mutual Life Insurance Company (2) |
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61,275 |
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165,553 |
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6 |
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8.10% |
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|
60,910 |
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162,578 |
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6 |
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8.22% |
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CRE - Term Warehouse Financing Facilities (3) |
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JPMorgan Chase Bank, N.A. (4) |
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— |
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— |
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— |
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—% |
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|
90,995 |
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|
158,639 |
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5 |
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6.87% |
Morgan Stanley Mortgage Capital Holdings LLC (5) |
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|
82,067 |
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119,084 |
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3 |
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6.55% |
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|
65,744 |
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98,373 |
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5 |
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7.22% |
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Mortgages Payable |
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ReadyCap Commercial, LLC (6) |
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20,292 |
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26,969 |
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1 |
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8.11% |
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|
20,240 |
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26,960 |
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1 |
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8.28% |
Oceanview Life and Annuity Company (7)(8) |
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44,171 |
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92,532 |
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1 |
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10.32% |
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44,211 |
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92,549 |
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1 |
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10.40% |
Florida Pace Funding Agency (7)(9) |
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15,113 |
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— |
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— |
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7.26% |
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|
15,105 |
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— |
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— |
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7.26% |
Total |
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$ |
1,108,582 |
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$ |
1,596,211 |
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$ |
297,205 |
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$ |
539,099 |
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(1)Includes $3.2 million of deferred debt issuance costs at June 30, 2025. (2)Includes $1.8 million and $2.2 million of deferred debt issuance costs at June 30, 2025 and December 31, 2024, respectively. (3)Outstanding borrowings include accrued interest payable at December 31, 2024. (4)Includes $988,000 of deferred debt issuance costs at December 31, 2024. (5)Includes $894,000 and $539,000 of deferred debt issuance costs at June 30, 2025 and December 31, 2024, respectively, which includes $673,000 of deferred debt issuance costs at June 30, 2025 from another term warehouse financing facility with no balance. (6)There were no deferred debt issuance costs at June 30, 2025. Includes $52,000 of deferred debt issuance costs at December 31, 2024. (7)Outstanding borrowings are collateralized by a student housing construction project. Value of collateral and number of positions as collateral related to Oceanview Life and Annuity Company also applies to Florida Pace Funding Agency. (8)Includes $140,000 and $101,000 of deferred debt issuance costs at June 30, 2025 and December 31, 2024, respectively. (9)Includes $397,000 and $405,000 of deferred debt issuance costs at June 30, 2025 and December 31, 2024, respectively.
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| Schedule of amount at risk under credit facility |
The following table shows information about the amount at risk under the Company's financing arrangements (dollars in thousands, except amounts in footnotes):
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Amount at Risk |
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|
Weighted Average Remaining Maturity |
|
Weighted Average Interest Rate |
At June 30, 2025 |
|
|
|
|
|
|
|
CRE - Term Reinvestment Financing Facility (1)(2) |
|
|
|
|
|
|
|
JPMorgan Chase Bank, N. A. |
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$ |
316,272 |
|
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4.8 years |
|
6.06% |
Senior Secured Financing Facility (1) |
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|
|
|
|
|
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Massachusetts Mutual Life Insurance Company |
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$ |
102,987 |
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2.6 years |
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8.10% |
CRE - Term Warehouse Financing Facilities (1)(2) |
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|
|
|
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JPMorgan Chase Bank, N. A. |
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$ |
— |
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|
1.1 years |
|
—% |
Morgan Stanley Mortgage Capital Holdings LLC |
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$ |
37,399 |
|
|
0.3 years |
|
6.55% |
Mortgages Payable |
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|
|
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ReadyCap Commercial, LLC (3) |
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$ |
6,597 |
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0.8 years |
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8.11% |
Oceanview Life and Annuity Company (4)(5)(6) |
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$ |
32,360 |
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0.2 years |
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10.32% |
Florida Pace Funding Agency (4)(5) |
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$ |
— |
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|
28.1 years |
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7.26% |
(1)Equal to the total of the estimated fair value of securities or loans sold and accrued interest receivable, minus the total of the financing agreement liabilities and accrued interest payable. (2)The Company is required to maintain a total minimum unencumbered liquidity balance of $20.0 million. (3)Equal to the total of the estimated fair value of real estate property investment financed, minus the total of the mortgage payable agreement liability and accrued interest payable. (4)Equal to the total of the estimated fair value of real estate property investment financed, minus the total of the construction loans agreement liabilities and accrued interest payable. Amount at risk related to Oceanview Life and Annuity Company also applies to Florida Pace Funding Agency. (5)Outstanding borrowings are collateralized by a student housing construction project. (6)In February 2025, the Company extended Oceanview Life and Annuity Company to September 2025.
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| Schedule of contractual obligations and commitments |
Contractual maturity dates of the Company’s borrowings principal outstanding by category and year are presented in the table below (in thousands):
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Total |
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|
2025 |
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|
2026 |
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|
2027 |
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|
2028 |
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|
2029 and Thereafter(1) |
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At June 30, 2025 |
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
CRE - term reinvestment financing facility |
|
$ |
888,838 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
888,838 |
|
Senior Secured Financing Facility |
|
|
63,099 |
|
|
|
— |
|
|
|
— |
|
|
|
50,996 |
|
|
|
12,103 |
|
|
|
— |
|
CRE - term warehouse financing facilities |
|
|
82,961 |
|
|
|
82,961 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Mortgages payable |
|
|
80,113 |
|
|
|
44,311 |
|
|
|
20,292 |
|
|
|
— |
|
|
|
— |
|
|
|
15,510 |
|
5.75% Senior Unsecured Notes |
|
|
150,000 |
|
|
|
— |
|
|
|
150,000 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Unsecured junior subordinated debentures |
|
|
51,548 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
51,548 |
|
Total |
|
$ |
1,316,559 |
|
|
$ |
127,272 |
|
|
$ |
170,292 |
|
|
$ |
50,996 |
|
|
$ |
12,103 |
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|
$ |
955,896 |
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(1)There are no contractual maturities due in 2029.
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