Fair value is based upon internal models, using market quotations, broker quotations, counterparty quotations or pricing services quotations, which provide valuation estimates based upon reasonable market order indications and are subject to significant variability based on market conditions, such as interest rates, credit spreads and market liquidity.

The following table presents the carrying value and fair value of the Company’s financial instruments as of June 30, 2025, and the level of each financial instrument within the fair value hierarchy (in ‘000s):


	Carrying Value		Level 1		Level 2		Level 3		Total
Assets
Loan receivables held for investment	$	969,565	$	—	$	—	$	953,526	$	953,526
Commercial debt securities		5,006				5,006		—		5,006
Total Assets	$	974,571	$	—	$	5,006	$	953,526	$	958,532
Liabilities
Credit facility	$	120,000	$	—	$	—	$	120,000	$	120,000
Morgan Stanley repurchase agreement		277,811		—		—		276,939		276,939
Citibank repurchase agreement		102,960		—		—		102,960		102,960
Note payable		119,707		—		—		119,487		119,487
HSBC Loan		86,080		—		—		86,071		86,071
Total Liabilities	$	706,558	$	—	$	—	$	705,457	$	705,457

Fair values for commercial real estate loans are measured by discounting future contractual cash flows to be received on the mortgage loan using a discount rate that is derived from observations in the market of discount rates on similar loans with similar credit characteristics and tenor. The discount rate is typically expressed as a spread to Treasuries of a similar tenor if the loan is fixed rate or if floating, as a discount margin to the floating rate index described in the mortgage. The spread or discount margin is reflective of the risk premium associated with the specific loan. Loans that are experiencing deteriorating credit fundamentals, delinquencies, or are anticipated to be foreclosed upon will tend to have higher spreads or discount margins reflecting their higher credit risk. Loans that are experiencing improving fundamentals will correspondingly have lower spreads or discount margins reflecting their improving credit quality.

The discounted cash flow method was used in calculating the fair values of the Company’s loan receivables held for investment. The significant unobservable inputs as of June 30, 2025 are the discount margins and range from 2.10% to 6.5%. The discounted cash flow method was used in calculating the fair values of the Company’s liabilities. The significant unobservable inputs as of June 30, 2025, are the discount margins and range from 1.55% to 2.60%.

The following table presents the carrying value and fair value of the Company’s financial instruments as of December 31, 2024, and the level of each financial instrument within the fair value hierarchy (in ‘000s):


	Carrying Value		Level 1		Level 2		Level 3		Total
Assets
Loan receivables held for investment	$	867,687	$	—	$	—	$	865,572	$	865,572
Total Assets	$	867,687	$	—	$	—	$	865,572	$	865,572
Liabilities
Credit facility	$	38,000	$	—	$	—	$	38,000	$	38,000
Morgan Stanley repurchase agreement		246,491		—		—		245,547		245,547
Note payable		119,707		—		—		119,462		119,462
HSBC Loan		141,330		—		—		141,220		141,220
Total Liabilities	$	545,528	$	—	$	—	$	544,229	$	544,229

The discounted cash flow method was used in calculating the fair values of the Company’s loan receivables held for investment. The significant unobservable inputs as of December 31, 2024 are the discount margins and range from 2.45% to 15.83%.

The discounted cash flow method was used in calculating the fair values of the Company’s liabilities. The significant unobservable inputs as of December 31, 2024, are the discount margins and range from 1.40% to 2.80%.