v3.25.2
Loans Held for Investment (Tables)
 6 Months Ended
Jun. 30, 2025
Receivables [Abstract]  
Schedule of Company's Loan Portfolio
June 30, 2025December 31, 2024
Fixed Rate
Floating
Rate (1)(2)(3)
TotalFixed Rate
Floating
Rate (1)(2)(3)
Total
Number of loans27921113
Principal balance$12,910,671$232,587,518$245,498,189$12,680,463$304,574,560$317,255,023
Carrying value$12,221,869$185,948,208$198,170,077$12,106,695$262,542,450$274,649,145
Fair value$11,895,045$186,375,244$198,270,289$11,740,671$264,796,547$276,537,218
Weighted-average coupon
    rate (4)
8.50 %14.07 %13.84 %8.50 %13.18 %13.04 %
Weighted-average remaining
 term (years) (5)
2.191.501.552.680.840.91
_______________
(1)These loans pay a coupon rate of Secured Overnight Financing Rate (“SOFR”) or forward-looking term rate based on SOFR (“Term SOFR”), as applicable, plus a fixed spread. Coupon rates shown were determined using the average SOFR of 4.32% and Term SOFR of 4.32% as of June 30, 2025 and average SOFR of 4.53% and Term SOFR of 4.33% as of December 31, 2024.
(2)As of June 30, 2025 and December 31, 2024, amount included $119.3 million and $208.0 million of senior mortgages used as collateral for $58.7 million and $123.2 million of borrowings under secured financing agreements, respectively (Note 8).
(3)As of June 30, 2025 and December 31, 2024, six and ten loans, respectively, were subject to a SOFR or Term SOFR floor, as applicable.
(4)Excludes non-performing loans for which recovery of interest income was not probable.
(5)Excludes loans that are in maturity default and represents current effective maturity as of June 30, 2025 and December 31, 2024, exclusive of any extension available.
Schedule of Lending Activities
The following tables present the activities of the Company’s loan portfolio:
Loans Held for Investment, NetLoans Held for Investment through Participation Interests, NetTotal
Balance, January 1, 2025
$233,571,416 $41,077,729 $274,649,145 
Principal repayments received(65,826,479)(21,216,420)(87,042,899)
Origination, purchase and funding of loans12,417,776 2,868,288 15,286,064 
Net amortization of premiums on loans(6,913)— (6,913)
Accrual, payment and accretion of investment-related fees and other,
   net		(918,840)(221,168)(1,140,008)
(Provision for) reversal of provision for credit losses(4,183,150)607,838 (3,575,312)
Balance, June 30, 2025
$175,053,810 $23,116,267 $198,170,077 
Loans Held for Investment, NetLoans Held for Investment through Participation Interests, NetTotal
Balance, January 1, 2024$417,913,773 $38,558,485 $456,472,258 
Principal repayments received(110,423,185)— (110,423,185)
Origination, purchase and funding of loans42,609,078 — 42,609,078 
Net amortization of premiums on loans(152,872)— (152,872)
Accrual, payment and accretion of investment-related fees and other,
   net		11,674 2,213 13,887 
Provision for credit losses(4,141,777)(25,195)(4,166,972)
Balance, June 30, 2024$345,816,691 $38,535,503 $384,352,194 
Schedule of Accounts, Loans and Financing Receivable The tables below detail the types of loans in the Company’s loan portfolio, as well as the property type and geographic location of the properties securing these loans. Carrying value represents the amortized cost of loans, net of applicable allowance for credit losses.
June 30, 2025December 31, 2024
Loan StructurePrincipal BalanceCarrying Value% of Total Principal BalanceCarrying Value% of Total
First mortgages$119,281,570 $120,968,236 61.0 %$207,985,740 $209,496,879 76.3 %
Preferred equity investments96,112,203 47,104,376 23.8 %94,224,551 50,114,256 18.2 %
Mezzanine loans30,104,416 30,097,465 15.2 %15,044,732 15,038,010 5.5 %
Total$245,498,189 $198,170,077 100.0 %$317,255,023 $274,649,145 100.0 %
June 30, 2025December 31, 2024
Property TypePrincipal BalanceCarrying Value% of Total Principal BalanceCarrying Value% of Total
Office$101,121,778 $52,716,178 26.6 %$116,539,650 $72,991,791 26.6 %
Multifamily71,141,165 70,881,300 35.8 %60,969,051 60,662,514 22.1 %
Infill land46,010,506 47,167,661 23.8 %56,307,815 57,050,952 20.8 %
Mixed-use20,224,740 20,423,739 10.3 %48,438,507 48,067,655 17.5 %
Industrial7,000,000 6,981,199 3.5 %7,000,000 6,966,233 2.5 %
Student housing— — — %28,000,000 28,910,000 10.5 %
Total$245,498,189 $198,170,077 100.0 %$317,255,023 $274,649,145 100.0 %

June 30, 2025December 31, 2024
Geographic LocationPrincipal BalanceCarrying Value% of Total Principal BalanceCarrying Value% of Total
United States
New York$75,887,463 $26,680,637 13.5 %$75,657,255 $31,536,808 11.5 %
California50,011,825 50,505,248 25.5 %71,006,023 71,273,115 26.0 %
Washington35,443,409 35,559,120 17.9 %26,894,593 26,907,157 9.8 %
Georgia31,144,986 31,276,212 15.8 %30,562,858 30,586,450 11.1 %
Arizona 23,104,416 23,116,267 11.7 %33,407,815 33,005,952 12.0 %
New Jersey22,906,090 24,051,394 12.1 %22,900,000 24,045,000 8.8 %
Massachusetts7,000,000 6,981,199 3.5 %7,000,000 6,966,233 2.5 %
North Carolina— — — %21,826,479 21,418,430 7.8 %
Utah— — — %28,000,000 28,910,000 10.5 %
Total$245,498,189 $198,170,077 100.0 %$317,255,023 $274,649,145 100.0 %
The following tables present the amortized cost of the Company’s loan portfolio by year of origination and loan risk rating: 
June 30, 2025
Loan Risk RatingNumber of LoansAmortized Cost% of TotalAmortized Cost by Year Originated
20252024202320222021Prior
1— $— — %$— $— $— $— $— $— 
21 7,000,000 2.8 %— — — — — 7,000,000 
3
2 67,174,318 27.1 %— 31,344,987 35,829,331 — — — 
41 23,268,420 9.4 %— — — 23,268,420 — — 
5— — — %— — — — — — 
Non-performing (1)
5 150,444,106 60.7 %— — — 44,475,133 — 105,968,973 
9 247,886,844 100.0 %$— $31,344,987 $35,829,331 $67,743,553 $— $112,968,973 
Allowance for credit losses(49,716,767)
Total carrying value, net$198,170,077 
_______________
(1)Amount includes three loans that are in maturity default with total amortized costs of $74.6 million. The Company expects to recover the principal and interest payments in full and therefore, no specific allowance for loan losses was recorded on these three loans.

December 31, 2024
Loan Risk RatingNumber of LoansAmortized Cost% of TotalAmortized Cost by Year Originated
20242023202220212020Prior
1— $— — %$— $— $— $— $— $— 
21 7,000,000 2.2 %— — — — — 7,000,000 
35 104,009,643 32.4 %30,812,857 27,121,997 — 30,035,052 — 16,039,737 
43 81,168,702 25.3 %— — 52,494,051 — 28,674,651 — 
5— — — %— — — — — — 
Non-performing 4 128,612,255 40.1 %— — 24,045,000 28,910,000 — 75,657,255 
13 320,790,600 100.0 %$30,812,857 $27,121,997 $76,539,051 $58,945,052 $28,674,651 $98,696,992 
Allowance for credit losses(46,141,455)
Total carrying value, net$274,649,145 
Schedule of Allowance for Credit Losses
The following table presents the activity in allowance for credit losses:
Six Months Ended June 30, 2025
Allowance on Non-Performing LoansAllowance on Performing LoansTotal
FundedUnfunded
Allowance for credit losses, beginning of period$44,120,447 $2,021,008 $150,024 $46,291,479 
Provision for (reversal of provision for) credit losses5,086,377 (1,511,065)(81,395)3,493,917 
Allowance for credit losses, end of period$49,206,824 $509,943 $68,629 $49,785,396 
Six Months Ended June 30, 2024
Allowance on Non-Performing LoansAllowance on Performing LoansTotal
FundedUnfunded
Allowance for credit losses, beginning of period$54,642,775 $2,333,250 $326,907 $57,302,932 
Provision for credit losses2,580,740 1,586,232 282,464 4,449,436 
Charge-offs(26,237,688)— — (26,237,688)
Allowance for credit losses, end of period$30,985,827 $3,919,482 $609,371 $35,514,680 
Schedule of Financing Receivable Credit Quality Indicators
The Company assesses the risk factors of each performing loan and assigns each performing loan a risk rating between 1 and 5, which is an average of the numerical ratings in the following categories: (i) sponsor capability and financial condition; (ii) loan and collateral performance relative to underwriting; (iii) quality and stability of collateral cash flows and/or reserve balances; and (iv) loan to value. Based on a 5-point scale, the Company’s performing loans are rated “1” through “5”, from less risk to greater risk, as follows:
Risk RatingDescription
1Very low risk
2Low risk
3Moderate/average risk
4Higher risk
5Highest risk