v3.25.4
SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING
17. SEGMENT REPORTING

The Company has determined that it has three reportable segments based on how the chief operating decision maker (“CODM”), the Chief Executive Officer, reviews and manages the business. The CODM uses net income (loss) to measure segment operating performance. All of the Company’s expenses are reviewed regularly and are included in segment operating performance. These reportable segments include loans, securities, and real estate. The loans segment includes all of the Company’s activities related to mortgage loan receivables held for investment (balance sheet loans) and mortgage loan receivables held for sale (conduit loans). The securities segment includes of all of the Company’s activities related to securities, which include investments in CMBS, U.S. Agency securities, corporate bonds, equity securities and U.S. Treasury securities not classified as cash and cash equivalents. The real estate segment includes all of the Company’s activities related to net leased properties, other diversified real estate and investments in unconsolidated ventures. Corporate/other includes cash and cash equivalents, senior unsecured notes, compensation and employee benefits, operating expenses, and unallocated items including any inter-segment eliminations necessary to reconcile to consolidated Company totals.
The Company evaluates performance based on the following financial measures for each segment ($ in thousands):
Year ended December 31, 2025LoansSecuritiesReal Estate (1)Corporate/Other(2)Company 
Total
Net interest income
Interest income$152,303 $99,689 $264 $14,638 $266,894 
Interest expense(14,653)(11,621)(25,490)(123,153)(174,917)
Net interest income (expense)137,650 88,068 (25,226)(108,515)91,977 
(Provision for) release of loan loss reserves157 — — — 157 
Net interest income (expense) after provision for (release of) loan reserves137,807 88,068 (25,226)(108,515)92,134 
Other income (loss)
Real estate operating income— — 99,308 — 99,308 
Net result from mortgage loan receivables held for sale4,716 — — — 4,716 
Gain (loss) on real estate, net— — 3,807 — 3,807 
Fee and other income8,860 6,069 66 — 14,995 
Net result from derivative transactions1,301 — 42 492 1,835 
Earnings (loss) from investment in unconsolidated ventures— — (1,415)— (1,415)
Gain (loss) on extinguishment of debt— — — 151 151 
Total other income (loss)14,877 6,069 101,808 643 123,397 
Costs and expenses
Compensation and employee benefits— — — (52,735)(52,735)
Operating expenses— — — (19,426)(19,426)
Real estate operating expenses— — (40,475)— (40,475)
Investment related expenses(1,478)(178)(493)(1,563)(3,712)
Depreciation and amortization— — (31,550)(445)(31,995)
Total costs and expenses(1,478)(178)(72,518)(74,169)(148,343)
Income (loss) before taxes151,206 93,959 4,064 (182,041)67,188 
Income tax (expense) benefit— — — (3,493)(3,493)
Segment net income (loss)$151,206 $93,959 $4,064 $(185,534)$63,695 
Total assets as of December 31, 2025$2,198,224 $2,088,285 $748,006 $118,035 $5,152,550 
Year ended December 31, 2024LoansSecuritiesReal Estate (1)Corporate/Other(2)Company 
Total
Net interest income
Interest income$247,432 $43,069 $352 $67,772 $358,625 
Interest expense(92,187)(61)(32,097)(97,192)(221,537)
Net interest income (expense)155,245 43,008 (31,745)(29,420)137,088 
(Provision for) release of loan loss reserves(13,933)— — — (13,933)
Net interest income (expense) after provision for (release of) loan reserves141,312 43,008 (31,745)(29,420)123,155 
Other income (loss)
Real estate operating income— — 98,681 — 98,681 
Net result from mortgage loan receivables held for sale(3)2,700 — — (2,670)30 
Gain (loss) on real estate, net— — 25,277 — 25,277 
Fee and other income19,003 (655)52 300 18,700 
Net result from derivative transactions185 80 248 4,907 5,420 
Earnings (loss) from investment in unconsolidated ventures— — (79)— (79)
Gain (loss) on extinguishment of debt— — — 188 188 
Total other income (loss)21,888 (575)124,179 2,725 148,217 
Costs and expenses
Compensation and employee benefits— — — (60,671)(60,671)
Operating expenses— — — (19,193)(19,193)
Real estate operating expenses— — (40,568)— (40,568)
Investment related expenses(4,946)(183)(573)(2,016)(7,718)
Depreciation and amortization— — (31,888)(439)(32,327)
Total costs and expenses(4,946)(183)(73,029)(82,319)(160,477)
Income (loss) before taxes158,254 42,250 19,405 (109,014)110,895 
Income tax (expense) benefit— — — (3,448)(3,448)
Segment net income (loss)$158,254 $42,250 $19,405 $(112,462)$107,447 
Total assets as of December 31, 2024$1,565,897 $1,080,839 $690,726 $1,507,611 $4,845,073 
Year ended December 31, 2023LoansSecuritiesReal Estate (1)Corporate/Other(2)Company 
Total
Net interest income
Interest income$341,840 $32,479 $12 $32,953 $407,284 
Interest expense(122,420)(3,177)(31,443)(88,057)(245,097)
Net interest income (expense)219,420 29,302 (31,431)(55,104)162,187 
(Provision for) release of loan loss reserves(25,096)— — — (25,096)
Net interest income (expense) after provision for (release of) loan reserves194,324 29,302 (31,431)(55,104)137,091 
Other income (loss)
Real estate operating income— — 96,950 — 96,950 
Net result from mortgage loan receivables held for sale(523)— — — (523)
Gain (loss) on real estate, net— — 8,808 — 8,808 
Fee and other income8,237 (232)300 626 8,931 
Net result from derivative transactions404 595 482 — 1,481 
Earnings (loss) from investment in unconsolidated ventures— — 758 — 758 
Gain (loss) on extinguishment of debt— — — 10,718 10,718 
Total other income (loss)8,118 363 107,298 11,344 127,123 
Costs and expenses
Compensation and employee benefits— — — (63,618)(63,618)
Operating expenses— — — (19,503)(19,503)
Real estate operating expenses— — (37,587)— (37,587)
Investment related expenses(6,310)(191)(903)(1,443)(8,847)
Depreciation and amortization— — (29,482)(432)(29,914)
Total costs and expenses(6,310)(191)(67,972)(84,996)(159,469)
Income (loss) before taxes196,132 29,474 7,895 (128,756)104,745 
Income tax (expense) benefit— — — (4,244)(4,244)
Segment net income (loss)$196,132 $29,474 $7,895 $(133,000)$100,501 
Total assets as of December 31, 2023$3,138,794 $485,533 $733,319 $1,155,031 $5,512,677 
(1)Includes the Company’s investment in unconsolidated ventures that held real estate of $44.5 million, $19.9 million and $6.9 million as of December 31, 2025, 2024 and 2023, respectively. This segment also includes the Company’s capital improvements of real estate of $8.3 million, $6.5 million and $4.4 million as of December 31, 2025, 2024 and 2023, respectively.
(2)Corporate/Other represents all corporate level and unallocated items including any inter-segment eliminations necessary to reconcile to consolidated Company totals. Corporate/Other includes the Company’s investment in FHLB stock of $5.2 million as of December 31, 2023 and the Company’s senior unsecured notes of $2.2 billion, $2.0 billion and $1.6 billion as of December 31, 2025, 2024 and 2023, respectively. Corporate/Other also includes the Company’s stock-based compensation expense of $20.3 million, $18.8 million and $18.6 million, within compensation and employee benefits as of December 31, 2025, 2024 and 2023, respectively.
(3)Includes $3.6 million of realized gains from sales of conduit mortgage loans collateralized by net leased properties in the Company’s real estate segment that eliminate in consolidation for the year ended December 31, 2025.