Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2025

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables detail our financial instruments measured at fair value on a recurring basis:


	June 30, 2025
	Fair Value Measurements Using:
$ in thousands	Level 1		Level 2		Level 3		Total at Fair Value
Assets:
Commercial real estate loan investments	$	—	$	1,220,104	$	2,330,274	$	3,550,378
Real estate-related securities	—		9,763		—		9,763

Total assets	$	—	$	1,229,867	$	2,330,274	$	3,560,141

Liabilities:

Secured lending agreements	$	—	$	—	$	1,679,778	$	1,679,778
Term lending agreements	—		—		147,732		147,732
Collateralized loan obligations	—		1,001,129		—		1,001,129
Derivative liabilities	—		3,590		—		3,590
Total liabilities	$	—	$	1,004,719	$	1,827,510	$	2,832,229


	December 31, 2024
	Fair Value Measurements Using:
$ in thousands	Level 1		Level 2		Level 3		Total at Fair Value
Assets:
Commercial real estate loan investments	$	—	$	—	$	2,391,078	$	2,391,078

Derivative assets	—		4,064		—		4,064
Total assets	$	—	$	4,064	$	2,391,078	$	2,395,142

Liabilities:
Secured lending agreements	$	—	$	—	$	1,720,350	$	1,720,350
Term lending agreements	—		—		134,518		134,518

Total liabilities	$	—	$	—	$	1,854,868	$	1,854,868

Schedule Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following table shows a reconciliation of the beginning and ending fair value measurements of our commercial real estate loan investments classified as Level 3:


$ in thousands	Three Months Ended June 30, 2025		Six Months Ended June 30, 2025
Beginning Balance	$	2,788,480	$	2,391,078
Transfers from Level 3 into Level 2	(1,220,104)		(1,220,104)
Loan originations and fundings	735,453		1,120,159
Net unrealized gain (loss)	935		2,791
Foreign currency adjustments	25,510		36,350
Ending Balance	$	2,330,274	$	2,330,274

Schedule of Fair Value Measurement Inputs and Valuation Techniques

The following tables summarize the significant unobservable inputs supporting the fair value measurement of our investments in commercial loans:

$ in thousands

June 30, 2025

Type

Fair Value

Valuation Technique

Unobservable Input

Weighted Average Rate

Range

Weighted Average Life (years)(1)

Commercial loans

2,330,274

Discounted cash flow

Discount rate

6.25%

5.04% - 11.96%

0.48

December 31, 2024

Type

Valuation Technique

Unobservable Input

Weighted Average Rate

Range

Weighted Average Life (years)(1)

Commercial loans

Discounted cash flow

Discount rate

7.16%

5.90% - 12.12%

0.56

(1) Based on expected cash flows and potential prepayments.

(2) Weighted average rate and life are not applicable for loans held by the consolidated CLO, as they were not valued using a discounted cash flow approach. Loans held by the CLO are valued using the more observable fair value of the notes issued by the CLO.

The following tables summarize the significant unobservable inputs used in the fair value measurement of our secured financing facilities:

June 30, 2025

Type

Valuation Technique

Unobservable Input

Weighted Average Rate

Range

Weighted Average Life (years)(1)

Secured financing facilities

Discounted cash flow

Discount rate

5.85%

4.02% - 6.56%

0.46

December 31, 2024

Type

Valuation Technique

Unobservable Input

Weighted Average Rate

Range

Weighted Average Life (years)

Secured financing facilities

Discounted cash flow

Discount rate

6.20%

4.88% - 6.72%

0.56

(1) Based on expected cash flows and potential prepayments.

Schedule of Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following table shows a reconciliation of the beginning and ending fair value measurements of our revolving credit facility:


$ in thousands	Three Months Ended June 30, 2025		Six Months Ended June 30, 2025
Beginning Balance	$	—	$	—
Proceeds from revolving credit facility	—		135,000
Repayment of revolving credit facility	—		(135,000)
Net unrealized (gain) loss	—		—
Ending Balance	$	—	$	—

The following tables show a reconciliation of the beginning and ending fair value measurements of our secured financing facilities:


	Three Months Ended June 30, 2025
$ in thousands	Secured Lending Agreements		Term Lending Agreement		Total
Beginning Balance	$	2,015,125	$	134,518	$	2,149,643
Proceeds from secured financing facilities	522,592		13,155		535,747
Repayments of secured financing facilities	(878,561)		—		(878,561)
Net unrealized (gain) loss	218		59		277
Unrealized foreign currency (gain) loss	20,404		—		20,404
Ending Balance	$	1,679,778	$	147,732	$	1,827,510


	Six Months Ended June 30, 2025
$ in thousands	Secured Lending Agreements		Term Lending Agreement		Total
Beginning Balance	$	1,720,350	$	134,518	$	1,854,868
Proceeds from secured financing facilities	808,893		13,155		822,048
Repayments of secured financing facilities	(878,561)		—		(878,561)
Net unrealized (gain) loss	23		59		82
Unrealized foreign currency (gain) loss	$	29,073	$	—	$	29,073
Ending Balance	$	1,679,778	$	147,732	$	1,827,510

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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