Fair Value Measurement (Tables)

6 Months Ended

Jun. 30, 2025

Schedule of Fair Values of Loan Investments

The following table presents fair value measurements of investments, by investment type, as of June 30, 2025, according to the fair value hierarchy:


	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
Senior Mortgage	$	—	$	—	$	1,211,613	$	1,211,613
Mezzanine	—		—		25,408		25,408
Real Estate Securities	—		38,910		—		38,910
Total	$	—	$	38,910	$	1,237,021	$	1,275,931

The following table presents fair value measurements of investments, by investment type, as of December 31, 2024, according to the fair value hierarchy:


	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
Senior Mortgage	$	—	$	—	$	799,660	$	799,660
Mezzanine	—		—		14,204		14,204
Real Estate Securities	—		28,992		—		28,992
Total	$	—	$	28,992	$	813,864	$	842,856

Schedule of Changes in Fair Value of Level 3 Assets by Investment Type

The following tables present a summary of changes in fair value of Level 3 assets by investment type for the six months ended June 30, 2025 and for the period from March 11, 2024 (date of inception) to December 31, 2024 (amounts in thousands):


	For the six months ended June 30, 2025
	Senior Mortgage (1)		Mezzanine (1)		Total
Balance as of January 1, 2025	$	799,660	$	14,204	$	813,864
Origination of loans	420,890		11,182		432,072
Paydowns of loans	(8,937)		—		(8,937)
Loan origination fees collected	(4,447)		(272)		(4,719)
Net accretion on investments	2,925		122		3,047
Net change in unrealized appreciation (depreciation) on investments (2)	1,522		172		1,694


Balance as of June 30, 2025	$	1,211,613	$	25,408	$	1,237,021

(1) There were no transfers into or out of Level 3 for the six months ended June 30, 2025.

(2) The total amount of unrealized gains relating to the Company’s Level 3 assets held was $1.7 million as of June 30, 2025.


	For the period from March 11, 2024 (date of inception) to December 31, 2024
	Senior Mortgage (1)		Mezzanine (1)		Total
Balance as of March 11, 2024	$	—	$	—	$	—
Origination of loans	799,659		21,682		821,341
Loan origination fees collected	(8,642)		(241)		(8,883)
Net accretion on investments	885		21		906
Net change in unrealized appreciation (depreciation) on investments (2)	7,758		137		7,895


Sales of investments	—		(7,390)		(7,390)
Net realized gains (losses)	—		(5)		(5)
Balance as of December 31, 2024	$	799,660	$	14,204	$	813,864

(1) There were no transfers into or out of Level 3 for the period from March 11, 2024 (date of inception) to December 31, 2024.

(2) The total amount of unrealized gains relating to the Company’s Level 3 assets held was $7.9 million as of December 31, 2024.

Schedule of Unobservable Inputs and Valuation Techniques

The following table presents quantitative information about the significant unobservable inputs of the Company’s Level 3 financial instruments as of June 30, 2025. The table is not intended to be all-inclusive but instead captures the significant unobservable inputs relevant to the Company’s determination of fair value (amounts in thousands).

Range

Asset Category

Fair Value

Primary Valuation Technique

Unobservable Inputs

Minimum

Maximum

Weighted Average

Senior Mortgage

37,103

Recent Transaction

n/a

Senior Mortgage

1,174,510

DCF Method

Discount Rate

2.75%

15.48%

3.73%

Mezzanine

—

Recent Transaction

n/a

Mezzanine

25,408

DCF Method

Discount Rate

6.90%

16.18%

11.93%

Total

1,237,021

The following table presents quantitative information about the significant unobservable inputs of the Company’s Level 3 financial instruments as of December 31, 2024. The table is not intended to be all-inclusive but instead captures the significant unobservable inputs relevant to the Company’s determination of fair value (amounts in thousands).

Range

Asset Category

Fair Value

Primary Valuation Technique

Unobservable Inputs

Minimum

Maximum

Weighted Average

Senior Mortgage

106,885

Recent Transaction

n/a

Senior Mortgage

692,775

DCF Method

Discount Rate

2.65%

8.30%

3.46%

Mezzanine

6,602

Recent Transaction

n/a

Mezzanine

7,602

DCF Method

Discount Rate

6.75%

12.75%

8.78%

Total

813,864

- 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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