v3.25.4
Loans Receivable, Net
 12 Months Ended
Dec. 31, 2025
Receivables [Abstract]  
Loans Receivable, Net LOANS RECEIVABLE, NET
The following table details overall statistics for our loans receivable portfolio ($ in thousands):
December 31, 2025
December 31, 2024
Number of loans
131
130
Principal balance
$18,154,768
$19,203,126
Net book value
$17,784,694
$18,313,582
Unfunded loan commitments(1)
$1,185,004
$1,263,068
Weighted-average cash coupon(2)
+ 3.19%
+ 3.46%
Weighted-average all-in yield(2)
+ 3.39%
+ 3.78%
Weighted-average maximum maturity (years)(3)
2.5
2.1
(1)Unfunded commitments will primarily be funded to finance our borrowers’ construction or development of real
estate-related assets, capital improvements of existing assets, or lease-related expenditures. These commitments will
generally be funded over the term of each loan, subject in certain cases to an expiration date.
(2)The weighted-average cash coupon and all-in yield are expressed as a spread over the relevant floating benchmark
rates, which include SOFR, SONIA, EURIBOR, CORRA, and other indices, as applicable to each loan. As of
December 31, 2025, 97% of our loans by principal balance earned a floating rate of interest, primarily indexed to
SOFR. The remaining 3% of our loans by principal balance earned a fixed rate of interest. As of December 31, 2024,
substantially all of our loans by principal balance earned a floating rate of interest, primarily indexed to SOFR. In
addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan
origination costs, and purchase discounts, as well as the accrual of exit fees. Excludes loans accounted for under the
cost-recovery and nonaccrual methods, if any.
(3)Maximum maturity assumes all extension options are exercised by the borrower, however our loans may be repaid
prior to such date. Excludes loans accounted for under the cost-recovery and nonaccrual methods, if any. As of
December 31, 2025, 40% of our loans by principal balance were subject to yield maintenance or other prepayment
restrictions and 60% were open to repayment by the borrower without penalty. As of December 31, 2024, 10% of
our loans by principal balance were subject to yield maintenance or other prepayment restrictions and 90% were
open to repayment by the borrower without penalty.
The following table details the index rate floors for our loans receivable portfolio as of December 31, 2025 ($ in
thousands):
Loans Receivable Principal Balance
Index Rate Floors
USD
Non-USD(1)
Total
Fixed Rate
$348,052
$137,445
$485,497
0.00% or no floor(2)
653,738
4,777,079
5,430,817
0.01% to 1.00% floor
2,549,547
1,137,577
3,687,124
1.01% to 2.00% floor
715,186
1,738,172
2,453,358
2.01% to 3.00% floor
4,452,606
371,727
4,824,333
3.01% or more floor
1,043,783
229,856
1,273,639
Total(3)
$9,762,912
$8,391,856
$18,154,768
(1)Includes Euro, British Pound Sterling, Swedish Krona, Australian Dollar, and Canadian Dollar currencies.
(2)Includes all impaired loans.
(3)As of December 31, 2025, the weighted-average index rate floor of our floating-rate loans receivable principal
balance was 1.31%. Excluding 0.0% index rate floors and loans with no floor, the weighted-average index rate floor
was 1.92%.
Activity relating to our loans receivable portfolio was as follows ($ in thousands):
Principal
Balance
Deferred Fees /
Other Items(1)
Net Book
Value
Loans Receivable, as of December 31, 2023
$23,923,719
$(136,707)
$23,787,012
Loan fundings
1,356,208
—
1,356,208
Loan repayments, sales, and cost-recovery proceeds
(4,663,293)
(87,993)
(4,751,286)
Charge-offs
(419,849)
35,246
(384,603)
Transfer to owned real estate
(590,937)
—
(590,937)
Transfer to other assets, net(2)
(70,248)
—
(70,248)
Payment-in-kind interest, net of interest received
16,660
—
16,660
Unrealized (loss) gain on foreign currency translation
(349,132)
1,406
(347,726)
Deferred fees and other items
—
(31,693)
(31,693)
Amortization of fees and other items
—
64,133
64,133
Loans Receivable, as of December 31, 2024
$19,203,126
$(155,608)
$19,047,518
Loan fundings
5,617,406
—
5,617,406
Loan repayments, sales, and cost-recovery proceeds
(6,106,964)
(26,397)
(6,133,361)
Charge-offs(3)
(667,227)
111,111
(556,116)
Transfer to owned real estate
(565,110)
—
(565,110)
Transfer to other assets, net(2)
(90,197)
—
(90,197)
Payment-in-kind interest, net of interest received
19,535
—
19,535
Unrealized gain (loss) on foreign currency translation
744,199
(2,433)
741,766
Deferred fees and other items
—
(71,728)
(71,728)
Amortization of fees and other items
—
59,421
59,421
Loans Receivable, as of December 31, 2025
$18,154,768
$(85,634)
$18,069,134
CECL reserve
(284,440)
Loans Receivable, net, as of December 31, 2025
$17,784,694
(1)Other items primarily consist of purchase and sale discounts or premiums, exit fees, deferred origination expenses,
and cost-recovery proceeds.
(2)This amount relates to: (i) intangible and other assets recorded in connection with loans that were transferred to
owned real estate, net of any liabilities recorded upon acquisition, if any; (ii) a loan that was partially satisfied
through the issuance of a note receivable in 2024; and (iii) proceeds from loan repayments that are held in escrow,
all of which are included within other assets in our consolidated balance sheets. See Note 6 for further information.
(3)Excludes a charge-off of CECL reserves of $6.8 million related to a note receivable issued in 2024 that was deemed
non-recoverable. This amount was previously recorded in other assets on our consolidated balance sheets. See Note
6 for further information.
The tables below detail the property type and geographic distribution of the properties securing the loans in our loans
receivable portfolio ($ in thousands):
December 31, 2025
Property Type
Number of Loans
Net Book Value
Net Loan Exposure(1)
Net Loan Exposure
Percentage of Portfolio
Office
37
$4,879,422
$4,556,980
27%
Multifamily
46
4,457,767
4,305,534
26
Industrial
21
4,458,487
4,114,141
24
Hospitality
12
1,940,693
1,827,133
11
Retail
6
674,612
596,204
3
Self-storage
3
659,515
492,376
3
Life Sciences / Studio
4
284,079
277,373
2
Other
2
714,559
676,293
4
Total loans receivable
131
$18,069,134
$16,846,034
100%
CECL reserve
(284,440)
Loans receivable, net
$17,784,694
Geographic Location
Number of Loans
Net Book Value
Net Loan Exposure(1)
Net Loan Exposure
Percentage of Portfolio
United States
Sunbelt
45
$4,715,039
$3,918,928
23%
West
23
1,963,032
1,872,531
11
Northeast
17
1,893,877
1,800,387
11
Midwest
6
619,726
609,433
4
Northwest
3
457,215
454,507
3
Subtotal
94
9,648,889
8,655,786
52
International
United Kingdom
19
3,595,424
3,582,983
21
Ireland
3
1,141,770
1,135,749
7
Australia
4
1,104,765
1,110,648
7
Spain
2
684,109
638,112
4
Sweden
1
502,124
500,917
3
Canada
1
455,407
288,504
2
Other Europe
6
875,579
872,527
4
Other International
1
61,067
60,808
—
Subtotal
37
8,420,245
8,190,248
48
Total loans receivable
131
$18,069,134
$16,846,034
100%
CECL reserve
(284,440)
Loans receivable, net
$17,784,694
(1)Net loan exposure reflects the amount of each loan that is subject to risk of credit loss to us as of December 31,
2025, which is our principal balance net of (i) $999.8 million of asset-specific debt, (ii) $24.5 million of cost-
recovery proceeds, and (iii) our total loans receivable CECL reserve of $284.4 million. Our asset-specific debt is
structurally non-recourse and term-matched to the corresponding collateral loans.
December 31, 2024
Property Type
Number of Loans
Net Book Value
Net Loan Exposure(1)
Net Loan Exposure
Percentage of Portfolio
Office
41
$7,386,333
$5,729,418
33%
Multifamily
50
5,091,767
4,934,364
29
Hospitality
16
2,768,374
2,663,349
16
Industrial
11
2,030,627
2,000,831
12
Retail
5
555,553
532,069
3
Life Sciences/Studio
3
342,817
337,687
2
Other
4
872,047
836,585
5
Total loans receivable
130
$19,047,518
$17,034,303
100%
CECL reserve
(733,936)
Loans receivable, net
$18,313,582
Geographic Location
Number of Loans
Net Book Value
Net Loan Exposure(1)
Net Loan Exposure
Percentage of Portfolio
United States
Sunbelt
44
$4,520,632
$4,084,242
24%
Northeast
21
4,614,582
3,452,961
20
West
21
1,865,382
1,746,309
10
Midwest
10
997,156
820,858
5
Northwest
4
432,644
432,794
3
Subtotal
100
12,430,396
10,537,164
62
International
United Kingdom
16
2,916,145
2,839,096
17
Ireland
3
1,050,276
1,048,329
6
Australia
3
920,182
923,507
5
Spain
3
785,368
744,287
4
Sweden
1
429,084
429,724
2
Other Europe
3
455,417
451,245
4
Other International
1
60,650
60,951
—
Subtotal
30
6,617,122
6,497,139
38
Total loans receivable
130
$19,047,518
$17,034,303
100%
CECL reserve
(733,936)
Loans receivable, net
$18,313,582
(1)Net loan exposure reflects the amount of each loan that is subject to risk of credit loss to us as of December 31,
2024, which is our principal balance net of (i) $1.2 billion of asset-specific debt, (ii) $106.7 million of cost-recovery
proceeds, (iii) our total loans receivable CECL reserve of $733.9 million, and (iv) $100.1 million of junior loan
interests that we have sold, but that remain included in our consolidated financial statements. See Note 2 for further
discussion of loan participations sold. Our asset-specific debt and loan participations sold are structurally non-
recourse and term-matched to the corresponding collateral loans.
Loan Risk Ratings
As further described in Note 2, we evaluate our loan portfolio on a quarterly basis. In conjunction with our quarterly loan
portfolio review, we assess the risk factors of each loan, and assign a risk rating based on several factors. Factors
considered in the assessment include, but are not limited to, risk of loss, origination LTV, debt yield, collateral
performance, structure, exit plan, and sponsorship. Loans are rated “1” (less risk) through “5” (greater risk), which ratings
are defined in Note 2.
The following tables allocate the net book value and net loan exposure balances based on our internal risk ratings ($ in
thousands):
December 31, 2025
Risk Rating
Number of Loans
Net Book Value
Net Loan Exposure(1)
1
3
$303,971
$302,564
2
20
2,875,870
2,704,222
3
85
11,907,947
11,045,913
4
17
2,806,758
2,705,706
5
6
174,588
87,629
Total loans receivable
131
$18,069,134
$16,846,034
CECL reserve
(284,440)
Loans receivable, net
$17,784,694
December 31, 2024
Risk Rating
Number of Loans
Net Book Value
Net Loan Exposure(1)
1
11
$1,919,280
$994,056
2
21
3,346,881
3,349,347
3
65
9,246,692
8,818,346
4
20
2,707,104
2,622,877
5
13
1,827,561
1,249,677
Total loans receivable
130
$19,047,518
$17,034,303
CECL reserve
(733,936)
Loans receivable, net
$18,313,582
(1)Net loan exposure reflects the amount of each loan that is subject to risk of credit loss to us as of December 31,
2025, which is our principal balance net of (i) $999.8 million of asset-specific debt, (ii) $24.5 million of cost-
recovery proceeds, and (iii) our total loans receivable CECL reserve of $284.4 million. Our net loan exposure as of
December 31, 2024 is our principal balance net of (i) $1.2 billion of asset-specific debt, (ii) $106.7 million of cost-
recovery proceeds, (iii) our total loans receivable CECL reserve of $733.9 million, and (iv) $100.1 million of junior
loan interests that we have sold, but that remain included in our consolidated financial statements. Our asset-specific
debt and loan participations sold are structurally non-recourse and term-matched to the corresponding collateral
loans.
Our loan portfolio had a weighted-average risk rating of 3.0, based on net loan exposure, as of both December 31, 2025 and
December 31, 2024.
Current Expected Credit Loss Reserve
The CECL reserves required under GAAP reflect our current estimate of potential credit losses related to the loans included
in our consolidated balance sheets. Refer to Note 2 for further discussion of our CECL reserves. The following table
presents the activity in our loans receivable CECL reserve by investment pool for the years ended December 31, 2025 and
2024 ($ in thousands):
U.S. Loans(1)
Non-U.S.
Loans
Unique
Loans
Impaired
Loans
Total
Loans Receivable, Net
CECL reserves as of December 31, 2024
$80,057
$26,141
$47,087
$580,651
$733,936
Increase in CECL reserves
21,123
19,329
3,378
62,790
106,620
Charge-offs of CECL reserves
—
—
—
(556,116)
(556,116)
CECL reserves as of December 31, 2025
101,180
45,470
50,465
87,325
284,440
CECL reserves as of December 31, 2023
$78,335
$31,560
$49,371
$417,670
$576,936
Increase (decrease) in CECL reserves
1,722
(5,419)
(2,284)
547,584
541,603
Charge-offs of CECL reserves
—
—
—
(384,603)
(384,603)
CECL reserves as of December 31, 2024
$80,057
$26,141
$47,087
$580,651
$733,936
(1)Includes one U.S. dollar-denominated loan that is located in Bermuda.
During the year ended December 31, 2025, we recorded a net decrease of $449.5 million in the CECL reserves against our
loans receivable portfolio, primarily driven by a $493.3 million decrease in our asset-specific CECL reserve. This decrease
was driven by charge-offs of our CECL reserves of $556.1 million primarily related to (i) the resolution of eight previously
impaired loans resulting in aggregate charge-offs of $338.0 million, and (ii) $218.1 million of charge-offs related to three
previously impaired subordinate loans that were deemed non-recoverable as part of our ongoing assessment of collectibility
of our impaired loan portfolio. These charge-offs of CECL reserves were concentrated in the office sector, with
$338.1 million of such charge-offs, generally driven by adverse trends in the office sector in recent years, including
reduced tenant demand for office space and limited liquidity for office assets in capital markets. This decrease in our asset-
specific CECL reserve was partially offset by a $43.8 million increase in our general CECL reserve, bringing our total
loans receivable CECL reserves to $284.4 million as of December 31, 2025. The increase in our general CECL reserve was
primarily as a result of an increase in the historical loss rate used in reserve calculations related to the additional CECL
charge-offs.
As of December 31, 2025, we had an aggregate $87.3 million asset-specific CECL reserve related to six of our loans
receivable, with a total amortized cost basis of $174.6 million, net of cost-recovery proceeds. Impairments are each
determined individually as a result of changes in the specific credit quality factors for each such loan. These factors
included, among others, (i) the underlying collateral performance, (ii) discussions with the borrower, (iii) borrower events
of default, and (iv) other facts that impact the borrower’s ability to pay the contractual amounts due under the terms of the
loan. This asset-specific CECL reserve was recorded based on our estimation of the fair value of each loan’s underlying
collateral as of December 31, 2025.
No income was recorded on our impaired loans subsequent to determining that they were impaired. During the year ended
December 31, 2025, we received an aggregate $42.4 million of cash proceeds from such loans that were applied as a
reduction to the amortized cost basis of each respective loan.
As of December 31, 2025, one of our performing loans with an amortized cost basis of $98.3 million was in technical
default as a result of the non-payment of an extension fee. The loan was not past its maturity date and was current on its
interest payment, and had a risk rating of “4.” All other borrowers under performing loans were in compliance with the
applicable contractual terms of each respective loan, including any required payment of interest. Refer to Note 2 for further
discussion of our policies on revenue recognition and our CECL reserves.
Our primary credit quality indicator is our risk ratings, which are further discussed above. The following tables present the
net book value of our loan portfolio as of December 31, 2025 and December 31, 2024, respectively, by year of origination,
investment pool, and risk rating ($ in thousands):
Net Book Value of Loans Receivable by Year of Origination(1)
As of December 31, 2025
Risk Rating
2025
2024
2023
2022
2021
Prior
Total
U.S. loans
1
$—
$—
$—
$151,674
$98,329
$53,968
$303,971
2
140,513
61,068
—
105,447
611,866
170,012
1,088,906
3
1,870,372
274,866
—
1,714,538
1,928,118
456,963
6,244,857
4
—
—
—
367,804
582,317
961,346
1,911,467
5
—
—
—
—
—
—
—
Total U.S. loans
$2,010,885
$335,934
$—
$2,339,463
$3,220,630
$1,642,289
$9,549,201
Non-U.S. loans
1
$—
$—
$—
$—
$—
$—
$—
2
652,289
—
—
480,619
654,056
—
1,786,964
3
2,465,305
—
—
—
941,669
1,084,707
4,491,681
4
—
—
—
—
—
366,658
366,658
5
—
—
—
—
—
—
—
Total Non-U.S. loans
$3,117,594
$—
$—
$480,619
$1,595,725
$1,451,365
$6,645,303
Unique loans
1
$—
$—
$—
$—
$—
$—
$—
2
—
—
—
—
—
—
—
3
—
—
—
877,908
—
293,501
1,171,409
4
—
—
—
—
—
528,633
528,633
5
—
—
—
—
—
—
—
Total unique loans
$—
$—
$—
$877,908
$—
$822,134
$1,700,042
Impaired loans
1
$—
$—
$—
$—
$—
$—
$—
2
—
—
—
—
—
—
—
3
—
—
—
—
—
—
—
4
—
—
—
—
—
—
—
5
—
—
—
—
31,700
142,888
174,588
Total impaired loans
$—
$—
$—
$—
$31,700
$142,888
$174,588
Total loans receivable
1
$—
$—
$—
$151,674
$98,329
$53,968
$303,971
2
792,802
61,068
—
586,066
1,265,922
170,012
2,875,870
3
4,335,677
274,866
—
2,592,446
2,869,787
1,835,171
11,907,947
4
—
—
—
367,804
582,317
1,856,637
2,806,758
5
—
—
—
—
31,700
142,888
174,588
Total loans receivable
$5,128,479
$335,934
$—
$3,697,990
$4,848,055
$4,058,676
$18,069,134
CECL reserve
(284,440)
Loans receivable, net
$17,784,694
Gross charge-offs(2)
—
—
—
(54,404)
(214,796)
(286,916)
$(556,116)
(1)Date loan was originated or acquired by us. Origination dates are subsequently updated to reflect material loan
modifications.
(2)Represents charge-offs by year of origination during the year ended December 31, 2025.
Net Book Value of Loans Receivable by Year of Origination(1)
As of December 31, 2024
Risk Rating
2024
2023
2022
2021
2020
Prior
Total
U.S. loans
1
$—
$—
$151,674
$245,289
$60,240
$1,381,858
$1,839,061
2
60,651
—
197,153
1,611,856
—
—
1,869,660
3
268,408
—
1,599,604
2,160,837
691,097
392,470
5,112,416
4
—
—
236,780
1,019,672
—
726,513
1,982,965
5
—
—
—
—
—
—
—
Total U.S. loans
$329,059
$—
$2,185,211
$5,037,654
$751,337
$2,500,841
$10,804,102
Non-U.S. loans
1
$—
$—
$—
$80,219
$—
$—
$80,219
2
—
—
500,104
787,660
87,629
101,828
1,477,221
3
—
—
594,740
1,126,698
—
1,332,805
3,054,243
4
—
—
—
—
—
198,389
198,389
5
—
—
—
—
—
—
—
Total Non-U.S. loans
$—
$—
$1,094,844
$1,994,577
$87,629
$1,633,022
$4,810,072
Unique loans
1
$—
$—
$—
$—
$—
$—
$—
2
—
—
—
—
—
—
—
3
—
—
814,225
—
—
265,808
1,080,033
4
—
—
—
—
—
525,750
525,750
5
—
—
—
—
—
—
—
Total unique loans
$—
$—
$814,225
$—
$—
$791,558
$1,605,783
Impaired loans
1
$—
$—
$—
$—
$—
$—
$—
2
—
—
—
—
—
—
—
3
—
—
—
—
—
—
—
4
—
—
—
—
—
—
—
5
—
—
170,388
367,030
34,214
1,255,929
1,827,561
Total impaired loans
$—
$—
$170,388
$367,030
$34,214
$1,255,929
$1,827,561
Total loans receivable
1
$—
$—
$151,674
$325,508
$60,240
$1,381,858
$1,919,280
2
60,651
—
697,257
2,399,516
87,629
101,828
3,346,881
3
268,408
$—
3,008,569
3,287,535
691,097
1,991,083
9,246,692
4
—
—
236,780
1,019,672
—
1,450,652
2,707,104
5
—
—
170,388
367,030
34,214
1,255,929
1,827,561
Total loans receivable
$329,059
$—
$4,264,668
$7,399,261
$873,180
$6,181,350
$19,047,518
CECL reserve
(733,936)
Loans receivable, net
$18,313,582
Gross charge-offs(2)
—
—
(52,045)
(255,005)
—
(77,553)
$(384,603)
(1)Date loan was originated or acquired by us. Origination dates are subsequently updated to reflect material loan
modifications.
(2)Represents charge-offs by year of origination during the year ended December 31, 2024.
Loan Modifications Pursuant to ASC 326
During the twelve months ended December 31, 2025, we entered into four loan modifications that require disclosure
pursuant to ASC 326. Three of these loans were collateralized by office assets and one was collateralized by a life sciences/
studio asset.
One of the loan modifications included a term extension combined with an other-than-insignificant payment delay. This
loan modification had a term extension of 3.8 years, the loan was bifurcated into a separate senior loan and subordinate
loan, and the borrower paid a $1.7 million fee upon closing of the modification. We are accruing interest on the senior loan,
which is paying interest current, and deferring interest on the subordinate loan that is paying interest in-kind. As of
December 31, 2025, the amortized cost basis of this loan was $242.1 million, or 1.3% of our aggregate loans receivable
portfolio, with no unfunded commitments. This loan was in compliance with its modified contractual terms as of
December 31, 2025.
The other three loan modifications included term extensions combined with other-than-insignificant payment delays and
interest rate reductions. The first loan modification included a term extension of one year, the interest rate on the senior
loan decreased by 2.43%, the borrower repaid $25.0 million upon closing of the modification, and the loan was bifurcated
into a separate senior loan and subordinate loan. The senior loan is paying interest partially current, and partially in-kind,
while the subordinate loan is paying interest in-kind. We are accruing all of the interest on the senior loan and deferring
interest on the subordinate loan. The second loan modification included a term extension of 4.3 years, the interest rate
decreased by 3.56%, and the loan was bifurcated into a separate senior loan and subordinate loan. We are accruing all of
the interest on the senior loan that is paying current, and deferring interest income on the subordinate loan, which is paid-
in-kind. The third loan modification included a term extension of 4.3 years, the interest rate decreased by 4.19%, the
borrower repaid $12.7 million upon closing of the modification, and the loan was bifurcated into a separate senior loan and
subordinate loan. We are accruing all of the interest on the senior loan that is paying current and deferring interest income
on the subordinate loan, which is paid-in-kind. As of December 31, 2025, the aggregate amortized cost basis of these loans
was $387.4 million, or 2.1% of our aggregate loans receivable portfolio, with an aggregate $68.1 million of unfunded
commitments. These loans were in compliance with their modified contractual terms as of December 31, 2025.
All four of these loans had a risk rating of “5” at the time of modification. In aggregate, these modifications resulted in the
bifurcation of all four loans into separate senior and subordinate loans, or eight loans in aggregate. As of December 31,
2025, three of the newly bifurcated senior loans had a risk rating of “4,” and one had a risk rating of “3.” The four newly
bifurcated subordinate loans all had a risk rating of “5.”
Loans with a risk rating of “3” and “4” are included in the determination of our general CECL reserve and loans with a risk
rating of “5” have an asset-specific CECL reserve. Loan modifications that allow the option to pay interest in-kind increase
our potential economics and the size of our secured claim, as interest is capitalized and added to the outstanding principal
balance for applicable loans. As of December 31, 2025, no income was recorded on our loans subsequent to determining
that they were impaired and risk rated “5.”