| Schedule of company's assets and liabilities measured at fair value on a recurring basis |
The following table details the Company’s assets and liabilities measured at fair value on a recurring basis ($ in thousands):
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December 31, 2025 |
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December 31, 2024 |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Assets: |
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Investments in real estate debt |
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$ |
— |
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$ |
— |
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$ |
224,600 |
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$ |
224,600 |
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$ |
— |
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$ |
— |
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$ |
79,310 |
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$ |
79,310 |
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Investments in real estate-related and other securities |
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— |
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15,323 |
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— |
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15,323 |
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588 |
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5,829 |
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— |
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6,417 |
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Total |
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$ |
— |
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$ |
15,323 |
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$ |
224,600 |
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$ |
239,923 |
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$ |
588 |
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$ |
5,829 |
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$ |
79,310 |
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$ |
85,727 |
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Liabilities: |
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Mandatorily Redeemable Instruments |
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$ |
— |
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$ |
— |
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$ |
54,794 |
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$ |
54,794 |
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$ |
— |
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$ |
— |
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$ |
105,325 |
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$ |
105,325 |
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Interest rate swaps(1) |
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— |
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354 |
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— |
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354 |
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— |
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118 |
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— |
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118 |
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Treasury note futures contracts(1) |
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— |
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— |
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— |
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— |
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17 |
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— |
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— |
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17 |
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Total |
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$ |
— |
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$ |
354 |
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$ |
54,794 |
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$ |
55,148 |
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$ |
17 |
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$ |
118 |
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$ |
105,325 |
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$ |
105,460 |
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(1) Included in accounts payable, accrued expenses and other liabilities on the Company’s Consolidated Balance Sheets. The following table details the Company’s assets and liabilities measured at fair value on a recurring basis using Level 3 inputs ($ in thousands):
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Investments in Real Estate Debt (asset) |
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Mandatorily Redeemable Instruments (liability) |
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Balance at December 31, 2023 |
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$ |
16,825 |
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$ |
101,753 |
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Additions |
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62,400 |
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— |
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Distributions declared |
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— |
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4,299 |
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Reclassify to distributions payable/paid |
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— |
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(4,299 |
) |
Redemption value adjustment |
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— |
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3,572 |
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Fair value adjustment |
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|
85 |
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— |
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Balance at December 31, 2024 |
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$ |
79,310 |
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$ |
105,325 |
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Additions |
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162,200 |
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— |
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Repurchases |
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(16,825 |
) |
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(53,321 |
) |
Distributions declared |
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— |
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3,772 |
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Reclassify to distributions payable/paid |
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— |
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(3,772 |
) |
Redemption value adjustment |
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— |
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2,790 |
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Fair value adjustment |
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(85 |
) |
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Balance at December 31, 2025 |
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$ |
224,600 |
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$ |
54,794 |
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| Schedule of quantitative inputs and assumptions |
The following table contains the quantitative inputs and assumptions used for items categorized in Level 3 of the fair value hierarchy ($ in thousands):
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December 31, 2025 |
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Fair Value |
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Valuation Technique |
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Unobservable Inputs |
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Weighted - Average Rate |
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Impact to Valuation from an Increase in Input |
Assets: |
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Investments in real estate debt |
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$ |
224,600 |
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Discounted cash flow |
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Market credit spread |
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SOFR(1) + 2.69% |
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Decrease |
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Liabilities: |
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Mandatorily Redeemable Instruments(2) |
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$ |
54,794 |
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Discounted cash flow |
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Discount rate/
Exit capitalization rate/Market yield |
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7.52%/
6.07%/
5.44% |
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Decrease |
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December 31, 2024 |
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Fair Value |
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|
Valuation Technique |
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Unobservable Inputs |
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Weighted - Average Rate |
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Impact to Valuation from an Increase in Input |
Assets: |
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Investments in real estate debt |
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$ |
79,310 |
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Discounted cash flow |
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Market credit spread |
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SOFR(1) + 3.20% |
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Decrease |
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Liabilities: |
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Mandatorily Redeemable Instruments(2) |
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$ |
105,325 |
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Discounted cash flow |
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Discount rate/
Exit capitalization rate/Market yield |
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7.01%/
5.74%/
6.49% |
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Decrease |
(1) “SOFR” refers to the Secured Overnight Financing Rate. (2) Mandatorily Redeemable Instruments are carried at the NAV of the Class E shares/units, which is determined monthly in accordance with the Company’s valuation guidelines.
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| Schedule of Carrying Value and Fair Value of Financial Instruments |
The following table presents the carrying value and fair value of financial instruments that are not carried at fair value on the Consolidated Balance Sheets ($ in thousands):
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December 31, 2025 |
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|
December 31, 2024 |
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Carrying Value(1) |
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Fair Value(1) |
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Carrying Value(1) |
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Fair Value(1) |
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Mortgage notes |
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$ |
365,641 |
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$ |
366,381 |
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$ |
124,836 |
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$ |
123,252 |
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Repurchase facility |
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|
168,450 |
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|
168,450 |
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|
46,800 |
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|
46,832 |
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Unsecured revolving credit facility |
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|
73,000 |
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|
73,000 |
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|
— |
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|
— |
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Total |
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$ |
607,091 |
|
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$ |
607,831 |
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$ |
171,636 |
|
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$ |
170,084 |
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(1) Excludes deferred financing costs and discounts.
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