v3.25.2
LOANS HELD-FOR-INVESTMENT (Tables)
 6 Months Ended
Jun. 30, 2025
Receivables [Abstract]  
Schedule of Allowance for Financing Receivable
The following table presents the activity in the Company’s current expected credit losses related to its positions in two different tranches of a CMBS instrument for the six months ended June 30, 2025 and 2024 (in thousands):
CMBS
Current expected credit losses as of January 1, 2025
$110,062 
Provision for credit losses
72,266 
Current expected credit losses as of March 31, 2025
182,328 
Provision for credit losses
959 
Current expected credit losses as of June 30, 2025
$183,287 
CMBS
Current expected credit losses as of January 1, 2024
$35,808 
Reversal of credit losses
(246)
Current expected credit losses as of March 31, 2024
35,562 
Provision for credit losses
4,529 
Current expected credit losses as of June 30, 2024
$40,091 
The Company’s loans held-for-investment consisted of the following as of June 30, 2025 and December 31, 2024 (in thousands):
As of June 30,As of December 31,
20252024
First mortgage loans (1)
$3,168,597 $3,466,929 
Total CRE loans held-for-investment and related receivables, net3,168,597 3,466,929 
Liquid corporate senior loans29,396 41,467 
Corporate senior loans317,231 254,617 
Loans held-for-investment and related receivables, net$3,515,224 $3,763,013 
Less: Current expected credit losses$(294,748)$(392,136)
Total loans held-for-investment and related receivables, net$3,220,476 $3,370,877 
____________________________________
(1)    As of June 30, 2025 and December 31, 2024, first mortgage loans included $19.0 million of contiguous mezzanine loan components that, as a whole, have expected credit quality similar to that of a first mortgage loan.
The following table details overall statistics for the Company’s loans held-for-investment as of June 30, 2025 and December 31, 2024 (dollar amounts in thousands):
CRE Loans (1) (2)
Liquid Corporate Senior LoansCorporate Senior Loans
June 30, 2025December 31, 2024June 30, 2025December 31, 2024June 30, 2025December 31, 2024
Number of loans34 33 10 15 29 20 
Principal balance$3,183,247 $3,483,454 $29,984 $42,717 $321,730 $258,816 
Net book value$2,881,929 $3,085,104 $26,650 $35,653 $311,897 $250,120 
Weighted-average interest rate (3)
7.4 %7.7 %10.0 %9.9 %10.1 %10.5 %
Weighted-average maximum years to maturity
2.42.33.53.73.33.5
Unfunded loan commitments (4)
$156,859 $217,907 $— $— $34,161 $43,750 
____________________________________
(1)As of June 30, 2025, 90.8% of the Company’s CRE loans by principal balance earned a floating rate of interest primarily indexed to the Secured Overnight Financing Rate (“SOFR”).
(2)Maximum maturity date assumes all extension options are exercised by the borrowers and assumes all relevant conditions are met for such extensions; however, the loans may be repaid prior to such date.
(3)The weighted-average interest rate is based on the relevant fixed rate or floating benchmark plus a spread. Excludes loans on nonaccrual status.
(4)Unfunded loan commitments are subject to the satisfaction of borrower milestones and are not reflected in the accompanying condensed consolidated balance sheets.
Activity relating to the Company’s loans held-for-investment portfolio was as follows for the six months ended June 30, 2025 (in thousands):
CRE Loans
Liquid Corporate Senior LoansCorporate Senior LoansTotal Loan Portfolio
Balance, January 1, 2025
$3,085,104 $35,653 $250,120 $3,370,877 
Loan originations, acquisitions and funding
234,750 1,282 74,683 310,715 
Sale of loans
— (5,275)— (5,275)
Principal repayments received
(304,867)(4,945)(11,844)(321,656)
Transfer to real estate assets (1)
(149,439)— — (149,439)
Capitalized interest7,966 14 75 8,055 
Write-offs charged (2)
(87,475)(3,371)— (90,846)
Deferred fees and other items (3)
(3,906)(30)(1,227)(5,163)
Accretion and amortization of fees and other items4,639 254 927 5,820 
Reversal of (provision for) credit losses (4)
95,157 3,068 (837)97,388 
Balance, June 30, 2025
$2,881,929 $26,650 $311,897 $3,220,476 
____________________________________
(1)During the six months ended June 30, 2025, the Company took control of the assets securing two of its risk-rated 5 first mortgage loans through deeds-in-lieu of foreclosure, as further discussed in Note 4 — Real Estate Assets.
(2)Includes a combined $87.5 million write-off on the two first mortgage loans transferred to real estate assets as noted above and a $3.4 million write-off on three liquid corporate senior loans sold during the six months ended June 30, 2025.
(3)Other items primarily consist of purchase discounts or premiums and deferred origination expenses.
(4)Does not include current expected losses for unfunded or unsettled loan commitments. Such amounts are included in accrued expenses and accounts payable on the accompanying condensed consolidated balance sheets.
As of June 30, 2025, the Company’s CRE loans had the following characteristics based on carrying value (dollar amounts in thousands):
Collateral Property Type
As of June 30, 2025
Office
$1,563,389 49.4 %
Multifamily866,601 27.3 %
Industrial349,687 11.0 %
Hospitality191,965 6.1 %
Mixed Use71,327 2.3 %
Retail64,759 2.0 %
Self-Storage60,869 1.9 %
Total first mortgage loans
$3,168,597 100 %
Less: current expected credit losses
(286,668)
Total first mortgage loans, net
$2,881,929 
Geographic Location
As of June 30, 2025
South
$1,273,129 40.2 %
West
895,336 28.3 %
East
704,304 22.2 %
Various
295,828 9.3 %
Total first mortgage loans
$3,168,597 100 %
Less: current expected credit losses
(286,668)
Total first mortgage loans, net
$2,881,929 
The following table presents the activity in the Company’s current expected credit losses related to loans held-for-investment by loan type for the six months ended June 30, 2025 and 2024 (in thousands):
First Mortgage Loans
Unfunded First Mortgage Loans (1)
Liquid Corporate Senior Loans
Unfunded or Unsettled Liquid Corporate Senior Loans (1)
Corporate Senior Loans
Unfunded Corporate Senior Loans (1)
Total
Current expected credit losses as of January 1, 2025
$381,825 $13,917 $5,814 $— $4,497 $677 $406,730 
(Reversal of) provision for credit losses
(11,922)5,486 (2)— 260 (63)(6,241)
Charge-offs of CECL
(87,475)— (3,371)— — — (90,846)
Current expected credit losses as of March 31, 2025
$282,428 $19,403 $2,441 $— $4,757 $614 $309,643 
Provision for (reversal of) credit losses
4,240 (838)305 — 577 (42)4,242 
Current expected credit losses as of June 30, 2025
$286,668 $18,565 $2,746 $— $5,334 $572 $313,885 
Current expected credit losses as of January 1, 2024
$109,240 $10,062 $19,738 $3 $3,620 $495 $143,158 
Provision for (reversal of) credit losses77,564 (6,653)(3,719)(1)249 (78)67,362 
Charge-offs of CECL— — (1,649)— — — (1,649)
Current expected credit losses as of March 31, 2024
$186,804 $3,409 $14,370 $2 $3,869 $417 $208,871 
Provision for (reversal of) credit losses
211,485 7,197 (5,963)(1)(335)(13)212,370 
Charge-offs of CECL— — (480)— — — (480)
Current expected credit losses as of June 30, 2024
$398,289 $10,606 $7,927 $1 $3,534 $404 $420,761 
____________________________________
(1)Current expected losses for unfunded or unsettled loan commitments are included in accrued expenses and accounts payable on the condensed consolidated balance sheets.
Schedule of Financing Receivable Credit Quality Indicators The following table presents the net book value of the Company’s loans held-for-investment portfolio as of June 30, 2025 by year of origination, loan type, and risk rating (dollar amounts in thousands):
Amortized Cost of Loans Held-For-Investment by Year of Origination (1)
As of June 30, 2025
Number of Loans20252024202320222021
Prior
Total
First mortgage loans by internal risk rating:
1—$— $— $— $— $— $— $— 
2—— — — — — — — 
320181,434 78,825 350,242 593,243 517,051 — 1,720,795 
48— 102,635 — 231,806 220,208 71,059 625,708 
56

— — — 478,382 290,067 53,645 822,094 
Total first mortgage loans34181,434 181,460 350,242 1,303,431 1,027,326 124,704 3,168,597 
Liquid corporate senior loans by internal risk rating: (2)
1—— — — — — — — 
2—— — — — — — — 
34— — 1,715 13,509 2,520 — 17,744 
44— 6,203 — — 3,002 — 9,205 
52— 1,157 — 1,290 — 2,447 
Total liquid corporate senior loans10— 6,203 2,872 13,509 6,812 — 29,396 
Corporate senior loans by internal risk rating:
1—— — — — — — — 
2—— — — — — — — 
32649,467 127,017 73,471 28,607 — — 278,562 
43— — 11,528 27,141 — — 38,669 
5—— — — — — — — 
Total corporate senior loans2949,467 127,017 84,999 55,748 — — 317,231 
Less: Current expected credit losses(294,748)
Total loans held-for-investment and related receivables, net73$3,220,476 
Weighted Average Risk Rating (3)
3.7 
Gross charge-offs (4)
— (155)— — (90,691)— $(90,846)
____________________________________
(1)Date loan was originated or acquired by the Company. Origination dates are subsequently updated to reflect material loan modifications.
(2)As of June 30, 2025, two of the Company’s liquid corporate senior loan investments were on nonaccrual status with an aggregate carrying value of $2.4 million, which represented less than 1.0% of the carrying value of the Company’s loans held-for-investment portfolio.
(3)Weighted average risk rating calculated based on carrying value at period end.
(4)Represents gross charge-offs by year of origination during the six months ended June 30, 2025.