v3.25.2
Fair Value Measurements
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
In accordance with ASC 820, Fair Value Measurement (“ASC 820”), fair value is defined as the price that the Company would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value.
Each financial asset and liability is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below:
•Level 1 – Quoted prices in active markets for identical assets or liabilities.
•Level 2 – Other significant observable inputs (including quoted prices for similar assets or liabilities, interest rates, prepayment speeds, credit risk, etc.).
•Level 3 – Significant unobservable inputs (including the Company’s own assumptions in determining the fair value of assets and liabilities at the reporting date).
Valuation of Financial Assets and Liabilities Measured at Fair Value
The Company measures the fair value of its loans receivable and repurchase agreements using a discounted cash flow analysis unless observable market data is available. A discounted cash flow analysis requires management to make estimates regarding future interest rates and credit spreads. The most significant of these inputs relates to credit spreads and is unobservable. Thus, the Company has determined that the fair values of loans receivable and repurchase agreements valued using a discount cash flow analysis should be classified as Level 3 of the fair value hierarchy, while mortgage loans valued using securitized pricing should be classified as Level 2 of the fair value hierarchy. Mortgage loans classified as Level 3 are transferred to Level 2 if securitization pricing becomes available. The Company obtains third party pricing for determining the fair value of real estate securities, resulting in a Level 2 classification.
The following table presents the Company’s financial assets and liabilities carried at fair value on a recurring basis in the Consolidated Balance Sheets at June 30, 2025 by their level in the fair value hierarchy:
Fair Value Measurements
(in thousands)Level 1Level 2Level 3Total
Financial Assets:
   Loans receivable, at fair value$— $— $146,163 $146,163 
   Real estate securities, at fair value—57,426—57,426
Total$— $57,426 $146,163 $203,589 
Financial Liabilities:
   Repurchase agreements, at fair value$— $— $135,876 $135,876 
Total$— $— $135,876 $135,876 
The Company did not have financial assets and liabilities carried at fair value at December 31, 2024.
Valuation of Loans Receivable, at Fair Value
The following table shows a reconciliation of the beginning and ending fair value measurements of the Company’s loans receivable at June 30, 2025:
(in thousands)June 30, 2025
Beginning balance at January 1, 2025$— 
Loan originations and fundings146,163
Unrealized gain (loss) on loans receivable—
Balance at June 30, 2025$146,163 
The Company did not have investments in loans receivable measured at fair value during the year ended December 31, 2024.
The following table summarizes the significant unobservable inputs used in the fair value measurement of the Company’s loans receivable at June 30, 2025:
(in thousands)Fair ValueValuation TechniqueUnobservable InputsWeighted Average RateRange
Loans receivable, at fair value - Senior121,348Discounted Cash FlowDiscount Rate4.44%
2.67% - 6.64%
Loans receivable, at fair value - Senior20,000Recent Transactionn/an/an/a
Loans receivable, at fair value - Mezzanine4,815Discounted Cash FlowDiscount Rate10.48%
10.20% - 15.48%
Loans receivable, at fair value - Mezzanine0Recent Transactionn/an/an/a
$146,163 
The Company did not have Loans receivable, at fair value at December 31, 2024.
Valuation of Repurchase Agreements, at Fair Value
The following table shows a reconciliation of the beginning and ending fair value measurements of the Company’s repurchase agreements at June 30, 2025:
(in thousands)June 30, 2025
Beginning balance at January 1, 2025$— 
Borrowings under repurchase agreements153,085
Repayment under repurchase agreements(17,209)
Balance at June 30, 2025$135,876 
The Company did not have repurchase agreements measured at fair value during the year ended December 31, 2024.
The following table summarizes the significant unobservable inputs used in the fair value measurement of the Company’s repurchase agreements at June 30, 2025:
(in thousands)Fair ValueValuation TechniqueUnobservable InputsWeighted Average RateRange
Repurchase agreements, at fair value$83,920 Discounted Cash FlowDiscount Rate2.16%
0.75% - 3.50%
Repurchase agreements, at fair value51,956Recent Transactionn/an/an/a
135,876
The Company did not have Repurchase agreements, at fair value at December 31, 2024.