v3.25.4
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Schedule of Fair Value
The carrying values and estimated fair values of the Company’s financial instruments, which are both reported at fair value on a recurring basis or amortized cost/par, at December 31, 2025 and December 31, 2024 are as follows ($ in thousands):
 
December 31, 2025
      Weighted Average
Assets:Principal Amount Amortized Cost Basis/Purchase PriceFair ValueFair Value MethodYield
%		Remaining
Maturity/Duration (years)
CMBS(1)$2,070,492  $2,069,307 $2,064,922 Internal model5.31 %2.97
CMBS interest-only(1)347,200 (2)1,283 1,275 Internal model8.63 %0.52
GNMA interest-only(3)29,203 (2)95 167 Internal model9.24 %3.27
Agency securities(1)2  2 2 Internal model3.04 %0.19
Corporate bonds(1)9,250 9,231 9,240 Internal model8.58 %2.60
Equity securities(3) N/A 12,910 12,699 Observable market pricesN/A N/A
Mortgage loan receivables held for investment, net, at amortized cost(4)2,234,346  2,217,375 2,214,987 Discounted Cash Flow(5)7.76 %1.57
Mortgage loan receivables held for sale31,350  27,986 27,986 Internal model, third-party inputs(6)4.57 %6.92
Nonhedge derivatives(1)(7)113,500  264 264 Counterparty quotationsN/A0.22
Liabilities:       
Repurchase agreements - short-term627,012  627,012 627,012 Cost plus Accrued Interest(8)4.29 %0.04
Unsecured Revolving Credit Facility280,000 280,000 280,000 (9)2.42 %2.97
Mortgage loan financing386,543  388,195 385,460 Discounted Cash Flow5.88 %4.01
Senior unsecured notes2,233,409  2,215,195 2,265,416 Internal model5.29 %3.54
(1)Measured at fair value on a recurring basis with the net unrealized gains or losses recorded as a component of other comprehensive income (loss) in equity.
(2)Represents notional outstanding balance of underlying collateral.
(3)Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings.
(4)Balance does not include impact of allowance for current expected credit losses of $47.1 million at December 31, 2025.
(5)Fair value for floating rate mortgage loan receivables, held for investment is estimated to approximate the outstanding face amount given the short interest rate reset risk (30 days) and no significant change in credit spreads since origination. Fair value for fixed rate mortgage loan receivables, held for investment is measured using a discounted cash flow model.
(6)Fair value for mortgage loan receivables, held for sale is measured using a hypothetical securitization model utilizing market data from recent securitization spreads and pricing.
(7)The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts.
(8)For repurchase agreements - short term, the value approximates the cost plus accrued interest.
(9)Fair value for the Unsecured Revolving Credit Facility is estimated to approximate the outstanding face.
December 31, 2024
      Weighted Average
Assets:Principal Amount Amortized Cost Basis/Purchase PriceFair ValueFair Value MethodYield
%		Remaining
Maturity/Duration (years)
CMBS(1)$1,065,985  $1,063,835 $1,058,873 Internal model6.13 %2.41
CMBS interest-only(1)769,724 (2)3,149 3,244 Internal model7.81 %0.87
GNMA interest-only(3)32,710 (2)160 155 Internal model9.38 %3.64
Agency securities(1)11  11 11 Internal model2.60 %0.58
Equity securities(3)N/A19,511 18,575 Observable market pricesN/A N/A
Mortgage loan receivables held for investment, net, at amortized cost(4)1,596,277  1,591,322 1,575,911 Discounted Cash Flow(5)9.36 %0.86
Mortgage loan receivables held for sale31,350  26,898 26,898 Internal model, third-party inputs(6)4.57 %7.18
Nonhedge derivatives(1)(9)90,000  437 437 Counterparty quotationsN/A0.62
Liabilities:       
Repurchase agreements - short-term62,738  62,738 62,738 Cost plus Accrued Interest(7)6.55 %0.74
Mortgage loan financing443,733  446,397 435,048 Discounted Cash Flow6.09 %3.36
CLO debt601,464 601,380 601,430 Discounted Cash Flow(8)2.01 %0.98
Senior unsecured notes2,041,557  2,025,053 2,001,207 Internal model5.22 %3.72
(1)Measured at fair value on a recurring basis with the net unrealized gains or losses recorded as a component of other comprehensive income (loss) in equity.
(2)Represents notional outstanding balance of underlying collateral.
(3)Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings.
(4)Balance does not include impact of allowance for current expected credit losses of $52.3 million at December 31, 2024.
(5)Fair value for floating rate mortgage loan receivables, held for investment is estimated to approximate the outstanding face amount given the short interest rate reset risk (30 days) and no significant change in credit spreads since origination. Fair value for fixed rate mortgage loan receivables, held for investment is measured using a discounted cash flow model.
(6)Fair value for mortgage loan receivables, held for sale is measured using a hypothetical securitization model utilizing market data from recent securitization spreads and pricing.
(7)For repurchase agreements - short term, the value approximates the cost plus accrued interest.
(8)For CLO debt, the carrying value approximates the fair value discounting the expected cash flows at current market rates. If the collateral is determined to be impaired, the related financing would be revalued accordingly. There are no impairments on any positions.
(9)The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts.
Schedule of Financial Assets and Liabilities
The following table summarizes the Company’s financial assets and liabilities, which are both reported at fair value on a recurring basis (as indicated) or amortized cost/par, at December 31, 2025 and December 31, 2024 ($ in thousands):
 
December 31, 2025
 
Financial Instruments Reported at Fair Value on Consolidated Statements of Financial ConditionPrincipal
Amount		 Fair Value
 Level 1Level 2Level 3Total
Assets:      
CMBS(1)$2,061,579  $— $2,056,177 $— $2,056,177 
CMBS interest-only(1)339,241 (2)— 1,171 — 1,171 
GNMA interest-only(3)29,203 (2)— 167 — 167 
Agency securities(1)2  — 2 — 2 
Corporate bonds(1)9,250 — 9,240 — 9,240 
Equity securities N/A 12,699 — — 12,699 
Nonhedge derivatives(4)113,500 264 — — 264 
$12,963 $2,066,757 $— $2,079,720 
Financial Instruments Not Reported at Fair Value on Consolidated Statements of Financial ConditionPrincipal
Amount		 Fair Value
 Level 1Level 2Level 3Total
Assets:
Mortgage loan receivables held for investment, net, at amortized cost(5)$2,234,346  $— $— $2,214,987 $2,214,987 
Mortgage loan receivable held for sale(6)31,350  — — 27,986 27,986 
CMBS(7)8,913 — 8,745 — 8,745 
CMBS interest-only(7)7,958 — 104 — 104 
$— $8,849 $2,242,973 $2,251,822 
Liabilities:     
Repurchase agreements - short-term$627,012  $— $627,012 $— $627,012 
Unsecured Revolving Credit Facility280,000 — — 280,000 280,000 
Mortgage loan financing386,543  — — 385,460 385,460 
Senior unsecured notes2,233,409  — 2,265,416 — 2,265,416 
$— $2,892,428 $665,460 $3,557,888 
(1)Measured at fair value on a recurring basis with the net unrealized gains or losses recorded as a component of other comprehensive income (loss) in equity.
(2)Represents notional outstanding balance of underlying collateral. 
(3)Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings. 
(4)Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings. The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts.
(5)Balance does not include impact of allowance for current expected credit losses of $47.1 million at December 31, 2025.
(6)A lower of cost or market adjustment was recorded as of December 31, 2025.
(7)Restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust, are classified as held-to-maturity and reported at amortized cost.
December 31, 2024
 
Financial Instruments Reported at Fair Value on Consolidated Statements of Financial ConditionPrincipal
Amount		 Fair Value
 Level 1Level 2Level 3Total
Assets:      
CMBS(1)$1,056,844  $— $1,049,986 $— $1,049,986 
CMBS interest-only(1)761,537 (2)— 3,037 — 3,037 
GNMA interest-only(3)32,710 (2)— 155 — 155 
Agency securities(1)11  — 11 — 11 
Equity securities N/A 18,575 — — 18,575 
Nonhedge derivatives(4)90,000 — 437 — 437 
$18,575 $1,053,626 $— $1,072,201 
Financial Instruments Not Reported at Fair Value on Consolidated Statements of Financial ConditionPrincipal
Amount		 Fair Value
 Level 1Level 2Level 3Total
Assets:
Mortgage loan receivables held for investment, net, at amortized cost(5)$1,596,277  $— $— $1,575,911 $1,575,911 
Mortgage loan receivable held for sale(6)31,350  — — 26,898 26,898 
CMBS(7)9,142 — 8,887 — 8,887 
CMBS interest-only(7)8,187 — 207 — 207 
$— $9,094 $1,602,809 $1,611,903 
Liabilities:     
Repurchase agreements - short-term$62,738  $— $62,738 $— $62,738 
Mortgage loan financing443,733  — — 435,048 435,048 
CLO debt601,464 — 601,430 — 601,430 
Senior unsecured notes2,041,557  — 2,001,207 — 2,001,207 
$— $2,665,375 $435,048 $3,100,423 
(1)Measured at fair value on a recurring basis with the net unrealized gains or losses recorded as a component of other comprehensive income (loss) in equity.
(2)Represents notional outstanding balance of underlying collateral. 
(3)Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings. 
(4)Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings. The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts.
(5)Balance does not include impact of allowance for current expected credit losses of $52.3 million at December 31, 2024.
(6)A lower of cost or market adjustment was recorded as of December 31, 2024.
(7)Restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust, are classified as held-to-maturity and reported at amortized cost.
(8)As of December 31, 2024, the Company determined that $2.0 billion of senior unsecured notes were Level 2 based on the Company’s increased observability of the inputs used to internally value the senior unsecured notes.