| Summary of Financial Assets and Liabilities Carried at Fair Value |
The following table presents the Company's financial assets and liabilities carried at fair value in the consolidated balance sheets by its level in the fair value hierarchy: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2025 (Unaudited) | | December 31, 2024 | | | Total | | Level 1 | | Level 2 | | Level 3 | | Total | | Level 1 | | Level 2 | | Level 3 | | Financial Assets | | | | | | | | | | | | | | | | | | Mortgage-backed securities, at fair value | | $ | 359,682 | | | $ | — | | | $ | 359,682 | | | $ | — | | | $ | 335,720 | | | $ | — | | | $ | 335,720 | | | $ | — | | | Mortgage loans held in securitization trusts, at fair value | | 2,246,442 | | | — | | | — | | | 2,246,442 | | | 1,633,589 | | | — | | | — | | | 1,633,589 | | | Interest rate cap | | 214 | | | — | | | 214 | | | — | | | 1,427 | | | — | | | 1,427 | | | — | | | Total | | $ | 2,606,338 | | | $ | — | | | $ | 359,896 | | | $ | 2,246,442 | | | $ | 1,970,736 | | | $ | — | | | $ | 337,147 | | | $ | 1,633,589 | | | | | | | | | | | | | | | | | | | | Financial Liabilities | | | | | | | | | | | | | | | | | | Mortgage obligations issued by securitization trusts, at fair value | | $ | 2,034,059 | | | — | | | $ | 2,034,059 | | | — | | | $ | 1,484,019 | | | — | | | $ | 1,484,019 | | | — | |
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| Summary of Changes in Fair Value of Financial Assets Which are Measured at Fair Value on a Recurring Basis |
The following table presents the changes in fair value of financial assets which are measured at fair value on a recurring basis using Level 3 inputs to determine fair value for the six months ended June 30, 2025 and 2024: | | | | | | | | | | | | | | | | | Mortgage loans held in securitization trusts, at fair value | | | Six Months Ended June 30, | | | 2025 | | 2024 | | Fair value at beginning of period | | $ | 1,633,589 | | | $ | 950,972 | | | Accretion of discount (amortization of premium) | | — | | | — | | | Net realized gain (loss) | | — | | | — | | Unrealized gain (loss) in earnings(1) | | 18,282 | | | 10,981 | | | Purchases | | 62,357 | | | 1,056,508 | | | Sales and repayments | | — | | | (240,274) | | | Issuances | | — | | | — | | | Transfer into Level 3 | | — | | | — | | | Transfers out of Level 3 | | — | | | — | | | Consolidation of securitization trusts | | 532,214 | | | — | | | Deconsolidation of securitization trusts | | — | | | — | | | Fair value at end of period | | $ | 2,246,442 | | | $ | 1,778,187 | | | Amount of unrealized gains (losses) attributable to assets still held at the reporting date | | | | | | Included in earnings | | $ | 18,282 | | | $ | 10,981 | | | Included in other comprehensive income | | — | | | — | |
______________________ (1) For the six months ended June 30, 2025 and 2024, unrealized gain of $18,282 and $10,981, respectively, related to mortgage loans held in securitization trusts, at fair value was offset by unrealized loss of $17,304 and $10,019 related to mortgage obligations issued by securitization trusts, at fair value.
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| Summary of Carrying Amount, Face Amount, and Fair Value of Financial Instruments |
The following table details the carrying amount, face amount, and fair value of the financial instruments described in Note 2: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2025 (Unaudited) | | December 31, 2024 | | | Book Value | | Face Amount | | Fair Value | | Book Value | | Face Amount | | Fair Value | | Financial Assets | | | | | | | | | | | | | | Cash, cash equivalents and restricted cash | | $ | 140,754 | | | $ | 140,754 | | | $ | 140,754 | | | $ | 90,540 | | | $ | 90,540 | | | $ | 90,540 | | Loans receivable - held-for-investment(1) | | $ | 7,360,785 | | | $ | 7,468,417 | | | $ | 7,419,394 | | | $ | 7,402,810 | | | $ | 7,507,083 | | | $ | 7,421,414 | | | Mortgage-backed securities held-to-maturity | | $ | 30,024 | | | $ | 30,000 | | | $ | 29,724 | | | $ | 78,131 | | | $ | 80,300 | | | $ | 77,107 | | | Financial Liabilities | | | | | | | | | | | | | Repurchase agreements(2) | | $ | 1,787,524 | | | $ | 1,792,194 | | | $ | 1,792,194 | | | $ | 1,079,758 | | | $ | 1,082,669 | | | $ | 1,082,669 | | Credit facilities(2) | | $ | 840,147 | | | $ | 850,037 | | | $ | 850,037 | | | $ | 837,894 | | | $ | 850,000 | | | $ | 850,000 | | Collateralized loan obligations(2)(3) | | $ | 3,135,910 | | | $ | 3,152,847 | | | $ | 3,152,847 | | | $ | 3,696,034 | | | $ | 3,715,375 | | | $ | 3,715,375 | | Mortgage note payable(2) | | $ | 124,700 | | | $ | 124,700 | | | $ | 124,700 | | | $ | 124,368 | | | $ | 124,700 | | | $ | 124,700 | |
__________________ (1) Book value of loans receivable represents the face amount, net of CECL reserve, unamortized loan fees and costs and accrual of exit fees, as applicable. (2) Book value represents the face amount, net of deferred financing costs and discount. (3) Face value represents the face amount, net of discount.
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