v3.25.2
Borrowings
 6 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
Borrowings Borrowings
The table below summarizes our borrowing arrangements as of June 30, 2025 and December 31, 2024. Our borrowing arrangements include secured lending and term lending agreements (collectively, our “secured financing facilities”) and a revolving credit facility.
June 30, 2025December 31, 2024
$ in thousandsCurrent Maturity
Extension Options(1)
Weighted Average Interest Rate(2)
Maximum Facility SizeAvailable CapacityAmount OutstandingFair ValueAmount OutstandingFair Value
Term Lending Agreement
INCREF Lending IIMatch-termMatch-term6.59%$300,000 $152,327 $147,673 $147,732 $134,518 $134,518 
Secured Lending Agreements
Term Financing
INCREF Lending IOct 2026Oct 20296.32%837,517 107,475 730,042 730,203 722,672 722,796 
Repurchase Agreements
Morgan Stanley Bank(3)
May 2026May 20275.85%500,000 169,124 330,876 330,880 342,009 342,079 
CitibankSep 2026Sep 20285.54%500,000 72,836 427,164 427,486 276,323 276,653 
Barclays(3)
Apr 2027Apr 2029 500,000 500,000 — — 199,305 199,326 
Wells FargoMay 2026May 20296.02%300,000 195,548 104,452 104,477 179,462 179,496 
Bank of Montreal(3)
Jul 2025Jul 2028 25,000 25,000 — — — — 
Capital One(3)
Feb 2027Feb 20305.81%250,000 163,359 86,641 86,732 N/AN/A
Total secured financing facilities$3,212,517 $1,385,669 $1,826,848 $1,827,510 $1,854,289 $1,854,868 
Revolving Credit Facility(4)
7.20%$162,000 $162,000 $— $— $— $— 
(1)    Assumes all available extension options are exercised.
(2)    Represents the weighted average interest rate in effect as of June 30, 2025.
(3)    Certain extension options for these facilities are subject to lender approval and compliance with certain financial and administrative covenants.
(4)    Maturity date is aligned with the Company’s ability to call remaining outstanding capital committed under the Invesco Subscription Agreement, as further explained below.
Borrowings denominated in U.S. dollars under our secured financing facilities and revolving credit facility bear interest at one-month Term SOFR plus a spread. Euro denominated borrowings bear interest at three-month Euribor plus a spread, and our British pound sterling denominated borrowings bear interest at three-month SONIA plus a spread. Our secured financing facilities are subject to certain non-financial and financial covenants, including liquidity, tangible net worth and leverage covenants. We were in compliance with these covenants as of June 30, 2025.

Term Lending Agreement
In August 2024, we entered into a $300.0 million Facility Loan Program and Security Agreement with a financial institution (“INCREF Lending II”) that provides asset-based financing on a non-mark-to-market basis with partial recourse to the Company and match-term to the underlying loans.
We have pledged certain commercial real estate loan investments with a fair value of approximately $190.3 million as collateral for INCREF Lending II. We segregate the commercial real estate loans that we have pledged as collateral in our books and records. Our term lending agreement counterparty has the right to resell or repledge the collateral posted but has the obligation to return the pledged collateral upon maturity of the term lending agreement.
Secured Lending Agreements
In July 2024, we entered into a $837.5 million Master Repurchase Agreement with a financial institution (“INCREF Lending I”) that provides asset-based financing with partial recourse to the Company and does not provide the lender with margin call rights. The term of the facility matches the term of the underlying collateral up to two years and is subject to three additional one-year extension options that we may exercise upon satisfaction of certain customary conditions and thresholds. We have pledged certain commercial real estate loan investments with a fair value of approximately $919.0 million as collateral for INCREF Lending I.
We have also entered into traditional repurchase agreements with six financial institutions, as detailed in the table above. We have pledged certain commercial real estate loan investments with a fair value of approximately $1.2 billion as collateral for these agreements. Certain borrowings under our Citibank repurchase agreement are collateralized by European commercial real estate loans. The borrowings are denominated in Euros and British pound sterling and have a fair value of €138.7 million and £192.9 million, respectively, as of June 30, 2025. We segregate the commercial real estate loans that we have pledged as collateral in our books and records. Our repurchase agreement counterparties have the right to resell or repledge the collateral posted but have the obligation to return the pledged collateral upon maturity of the repurchase agreement.

We were not required to post any margin under our master repurchase agreements as of June 30, 2025 and December 31, 2024. A margin deficiency may generally result from either a decline in the underlying loan’s market value or a shortfall in operating performance of the property. We may finance multiple commercial loan investments under a repurchase agreement; therefore, a margin excess in one asset could help mitigate a margin deficiency in another asset under the same repurchase agreement. We intend to maintain a level of liquidity that will enable us to meet margin calls. Master repurchase agreements are recourse obligations.
Counterparty Exposure

We have pledged certain commercial real estate loan investments as collateral for our secured financing facilities. If a secured financing counterparty were to default on its obligation to return the collateral, we would be exposed to potential losses to the extent the fair value of the collateral that we have pledged to the counterparty exceeded the amount loaned to us plus interest due to the counterparty. The following table summarizes our net exposure with those counterparties where the amount at risk exceeded 10.0% of stockholders’ equity as of June 30, 2025 and December 31, 2024.
$ in thousandsOutstanding PrincipalNet Counterparty Exposure
Weighted Average Life (Years)(1)
June 30, 2025
Morgan Stanley Bank$330,876 $90,630 1.90
Citibank1,157,206 296,130 3.91
Total$1,488,082 $386,760 3.46
December 31, 2024
Morgan Stanley Bank$342,009 $101,931 2.40
Citibank998,995 260,459 4.51
Barclays199,305 51,591 4.32
Wells Fargo179,462 48,058 4.39
Total$1,719,771 $462,039 4.05
(1) Assumes all extension options are exercised for borrowing facilities that may be extended at our option, subject to compliance with certain financial and administrative covenants.

The following table shows the aggregate amount of maturities of our outstanding borrowings over the next five years and thereafter as of June 30, 2025:
$ in thousands
Secured Lending Agreements(1)
Term Lending Agreement(1)
Total
Year
2025 (remaining)$— $— $— 
2026— — — 
2027330,876 — 330,876 
2028427,164 — 427,164 
2029834,494 126,836 961,330 
203086,641 20,837 107,478 
Thereafter— — — 
Total$1,679,175 $147,673 $1,826,848 
(1) Assumes all extension options are exercised for borrowing facilities that may be extended at our option, subject to compliance with certain financial and administrative covenants.
Revolving Credit Facility
Our revolving credit facility is secured by uncalled capital subscriptions under the terms of the Invesco Subscription Agreement, as described in Note 11 - “Redeemable Common Stock - Related Party”. Borrowings under the facility bear interest at one-month Term SOFR or the prime rate plus a spread. The revolving credit facility allows for the ability to obtain tranches of term financing in addition to general borrowings under an Uncommitted Tranche (as defined in the credit agreement). The Uncommitted Tranche is due on demand (15 business days after notice); any Funded Tranche (as defined in the credit agreement) is due no later than (a) three years from issuance or (b) 360 days after notice; and all amounts outstanding under the facility are due 30 days prior to the last date on which capital calls may be issued. The facility is prepayable without penalty.
Our revolving credit facility is subject to certain affirmative and negative non-financial and financial covenants, including a limitation on indebtedness. We were in compliance with these covenants as of June 30, 2025.