Commercial mortgage-backed securities, or CMBS, classified as available-for-sale are reported at fair value on the consolidated balance sheets with changes in fair value recorded in other comprehensive income. CMBS accounted for under the fair value option are reported at fair value on the consolidated balance sheets with changes in fair value recorded in the consolidated statements of operations as a component of Net change in unrealized gain (loss) on mortgage-backed securities, fair value option.


							Gross Unrealized						Weighted Average
	Outstanding Face Amount		Amortized Cost Basis		Allowance for Credit Losses		Gains		Losses		Fair Value		Coupon	Maturity (years)
June 30, 2025 (Unaudited)
CMBS, available-for-sale	$	141,789	$	137,490	$	(20,365)	$	476	$	(2,073)	$	115,528	9.33%(1)	11.0
CMBS, fair value option	$	247,516	$	243,757	—		$	814	$	(416)	$	244,154	6.66%(1)	5.2
December 31, 2024
CMBS, available-for-sale	$	156,755	$	152,450	$	(19,918)	$	770	$	(3,932)	$	129,370	9.39%(2)	13.3
CMBS, fair value option	$	207,653	$	205,154	—		$	1,433	$	(238)	$	206,350	6.85%(2)	3.8

As of June 30, 2025, there were two CMBS, classified as available-for-sale on non-accrual status with a total amortized cost of $25,310. All future interest collections will be accounted for under the cost recovery method.

The Company uses a discounted cash flow method to estimate and recognize an allowance for its available-for sale securities. The following table provides details on the changes in allowance for credit losses for available-for sale securities for the six months ended June 30, 2025:


	Six Months Ended June 30, 2025
Allowance for credit losses as of December 31, 2024	$	(19,918)
Additions on securities for which credit losses were not previously recorded	—
(Increase) decrease on securities with previously recorded credit losses	(784)
Allowance for credit losses as of March 31, 2025	(20,702)
Additions on securities for which credit losses were not previously recorded	—
(Increase) decrease on securities with previously recorded credit losses	337
Allowance for credit losses as of June 30, 2025	$	(20,365)

The following table presents the gross unrealized losses and estimated fair value of any available-for-sale securities for which an allowance for credit losses has not been recorded that were in an unrealized loss position as of June 30, 2025 and December 31, 2024, respectively.


	Estimated Fair Value				Unrealized Losses
	Securities with a loss less than 12 months		Securities with a loss greater than 12 months		Securities with a loss less than 12 months		Securities with a loss greater than 12 months
June 30, 2025 (Unaudited)
CMBS, available-for-sale	$	13,863	$	54,948	$	(15)	$	(2,058)
December 31, 2024
CMBS, available-for-sale	$	—	$	61,467	$	—	$	(3,932)

As of June 30, 2025 and December 31, 2024, there were eight and seven securities, respectively, with unrealized losses reflected in the table above. After evaluating the securities and recording adjustments for credit losses, the Company concluded that the remaining unrealized losses reflected above were noncredit-related and would be recovered from the securities’ estimated future cash flows. The Company considered a number of factors in reaching this conclusion, including that it did not intend to sell the securities, it was not considered more likely than not that the Company would be forced to sell the securities prior to recovering its amortized cost, and there were no material credit events that would have caused the Company to otherwise conclude that it would not recover the cost of the securities.


	Amortized Cost Basis		Credit Loss Allowance		Net Carrying Amount		Gross Unrecognized Holding Gains		Gross Unrecognized Holding Losses		Fair Value
June 30, 2025 (Unaudited)
CMBS, held-to-maturity	$	30,113	$	(89)	$	30,024	$	—	$	(300)	$	29,724
December 31, 2024
CMBS, held-to-maturity	$	78,268	$	(137)	$	78,131	$	—	$	(1,024)	$	77,107


CECL Reserve as of December 31, 2024	$	137
Increase (decrease) in CECL reserve	(29)
CECL reserve as of March 31, 2025	108
Increase (Decrease) in CECL reserve	(19)
CECL reserve as of June 30, 2025	$	89



CECL Reserve as of December 31, 2023	$	71
Increase (decrease) in CECL reserve	84
CECL reserve as of March 31, 2024	155
Increase (Decrease) in CECL reserve	19
CECL reserve as of June 30, 2024	$	174


	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
June 30, 2025 (Unaudited)
CMBS, held-to-maturity	$	30,113	$	—	$	30,113	$	—	$	—
December 31, 2024
CMBS, held-to-maturity	$	78,268	$	—	$	48,152	$	30,116	$	—