v3.25.2
FAIR VALUE MEASUREMENTS (Tables)
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Schedule of Net Book Value and Fair Value
In accordance with the fair value hierarchy described above, the following table details the net book value and fair value of the financial instruments described above as of June 30, 2025 and December 31, 2024 (in thousands):
June 30, 2025December 31, 2024
Net Book Value
Fair Value
Net Book ValueFair Value
Level
Financial assets:
First mortgage loans
$2,881,929 $2,932,962 $3,085,104 $3,141,665 3
Liquid corporate senior loans
26,650 21,972 35,653 32,062 (1)
Corporate senior loans
311,897 317,795 250,120 256,543 3
Total financial assets
$3,220,476 $3,272,729 $3,370,877 $3,430,270 
Financial liabilities:
Repurchase facilities, notes payable and credit facilities
$3,036,929 $2,975,952 $3,182,614 $3,098,368 2
Total financial liabilities
$3,036,929 $2,975,952 $3,182,614 $3,098,368 
____________________________________
(1)As of June 30, 2025, $18.0 million and $4.0 million of the Company’s liquid corporate senior loans were classified in Level 2 and Level 3 of the fair value hierarchy, respectively. As of December 31, 2024, $26.0 million and $6.1 million of the Company’s liquid corporate senior loans were classified in Level 2 and Level 3 of the fair value hierarchy, respectively.
Schedule of Fair Value, Assets and Liabilities Measured on a Recurring Basis
In accordance with the fair value hierarchy described above, the following tables show the fair value of the Company’s financial assets that are required to be measured at fair value on a recurring basis as of June 30, 2025 and December 31, 2024 (in thousands):
Balance as of
June 30, 2025		Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Financial assets:
CMBS$238,705 $— $195,278 $43,427 
CLO subordinated note
23,089 — — 23,089 
Equity securities
33,361 32,628 — 733 
Total financial assets$295,155 $32,628 $195,278 $67,249 
  
Balance as of December 31, 2024Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Financial assets:
CMBS$286,757 $— $241,341 $45,416 
CLO subordinated note26,901 — — 26,901 
Equity securities
32,170 31,547 — 623 
Total financial assets
$345,828 $31,547 $241,341 $72,940 
Reconciliation of the Changes in Liabilities With Level 3 Inputs
The following are reconciliations of the changes in financial assets with Level 3 inputs in the fair value hierarchy for the six months ended June 30, 2025 (in thousands):
Level 3
Beginning Balance, January 1, 2025
$72,940 
Total gains and losses:
Unrealized loss included in other comprehensive (loss) income
(931)
Current expected credit losses
(2,204)
Unrealized loss on CLO subordinated note
(1,966)
Purchases and payments received:
Proceeds from the repayment on the CLO subordinated note
(3,884)
Accreted interest income
2,037 
Discounts, net631 
Capitalized interest income626 
Ending Balance, June 30, 2025
$67,249 
Summary of Discount Rates and Terminal Capitalization rates of the Company’s Impairment Test
The following summarizes the ranges of discount rates and terminal capitalization rates used for the Company’s impairment test for the real estate assets during the six months ended June 30, 2025 and 2024:
Six Months Ended June 30,
20252024
Discount Rate
Terminal Capitalization Rate
Discount RateTerminal Capitalization Rate
9.5% - 11.9%
9.0% - 13.3%
8.6% - 11.0%
8.1% - 9.5%
Schedule of Impairment Charges by Asset Class
The following table presents the impairment charges by asset class recorded during the six months ended June 30, 2025 and 2024 (in thousands):
Six Months Ended June 30,
20252024
Asset class impaired:
Land$700 $8,182 
Buildings, fixtures and improvements6,347 39,364 
Intangible lease assets627 3,918 
Intangible lease liabilities— 5 
Condominium developments— 5,463 
Total impairment loss$7,674 $56,932