The Company’s primary lease commitment relates to its corporate headquarters. For the three months ended June 30, 2025 and 2024, the Company recorded an expense in connection with this lease of approximately $1.3 million and $1.5 million, respectively, and $2.7 million and $2.8 million for the six months ended June 30, 2025 and 2024, respectively. The original term specified in this lease is approximately fifteen years with a termination date of December 2036 and an option to renew for an additional five years.

Additionally, in December 2024, Lima One executed a new office lease for its headquarters in Greenville, South Carolina. Lima One moved into the new office space on July 15, 2025. The Company recorded an expense in connection with this lease of approximately $0.9 million for the six months ended June 30, 2025. The original term specified in this lease is approximately nine years with a termination date of December 2033 and two options to renew for an additional four years for the first extension and an additional five years for the second extension.

The Company recognized total lease expense of $2.8 million, and $1.9 million for the three months ended June 30, 2025 and 2024, respectively, and $4.6 million and $3.8 million for the six months ended June 30, 2025 and 2024, respectively, which is included in Other general and administrative expense on the Company’s consolidated statements of operations.

At June 30, 2025, the contractual minimum rental payments (exclusive of possible rent escalation charges and normal recurring charges for maintenance, insurance and taxes) for the Company’s lease commitments were as follows:


Year Ending December 31,	Minimum Rental Payments
(In Thousands)
2025 (1)	$	3,415
2026	6,946
2027	7,267
2028	7,083
2029	7,065
Thereafter	45,291
Total	$	77,066
Present Value Discount	(24,885)
Total Lease Liability (Note 7)	$	52,181

(1) Reflects contractual minimum rental payments due for the period from July 01, 2025 through December 31, 2025.

In connection with the loan securitization and sale transactions entered into by the Company, the Company has the obligation under certain circumstances to repurchase assets previously transferred to securitization vehicles, or otherwise sold, upon breach of certain representations and warranties. As of June 30, 2025, the Company was not aware of any material unsettled repurchase claims that would require a reserve (see Note 14).

At June 30, 2025, the Company had unfunded commitments in connection with its Single-family and Multifamily transitional loans of $240.7 million and $39.6 million, respectively (see Note 3). These commitments are subject to certain conditions that the respective borrowers must meet before funding is required. In addition, from time to time, Lima One makes short-term commitments to originate mortgage loans; such commitments were not significant at June 30, 2025.

In connection with one of its investments in a loan origination partner, as of June 30, 2025, the Company has guaranteed up to $51 million of such investee’s warehouse financing. As of June 30, 2025, the Company has not recorded a liability in connection with this guarantee.