As of December 31, 2025, the Company’s real estate-related securities and other had an aggregate estimated fair value of $169.2 million, which included nine CMBS investments, one CLO subordinated note and four equity securities. The CMBS investments have initial maturity dates ranging from March 2026 through June 2058 and have interest rates ranging from 0.2% to 7.9% as of December 31, 2025, with one CMBS earning a zero coupon rate. As of December 31, 2025, two tranches of a CMBS position held by the Company did not mature as anticipated in July 2025 and were therefore in maturity default. As of December 31, 2025, the CLO subordinated note has an initial maturity date of July 2037 and an estimated effective yield of 15.4%. The following is a summary of the Company’s real estate-related securities and other as of December 31, 2025 (in thousands):

The following table provides the activity for the real estate-related securities and other during the years ended December 31, 2025 and 2024 (in thousands):


	Amortized Cost Basis		Unrealized (Loss) Gain		CECL		Fair Value
Real estate-related securities as of January 1, 2024	$	647,035	$	(91,513)	$	(35,808)	$	519,714
Face value of real estate-related securities acquired	25,000		—		—		25,000
Investment in CLO subordinated note	31,825		—		—		31,825
Converted equity securities	5,060		—		—		5,060
Discount on purchase of CLO subordinated note	(4,179)		—		—		(4,179)
Discounts on purchase of real estate-related securities, net of acquisition costs	(63)		—		—		(63)
Accretion of discount on real estate-related securities	2,417		—		—		2,417
Accretion of interest income on CLO subordinated note	1,572		—		—		1,572
Sale of real estate-related securities	(34,045)		2,966		—		(31,079)
Capitalized interest income on real estate-related securities	1,214		—		—		1,214
Principal payments received on real estate-related securities (1)	(107,404)		—		—		(107,404)
Unrealized loss on real estate-related securities and other, net	—		(23,995)		—		(23,995)
Provision for credit losses	—		—		(74,254)		(74,254)
Real estate-related securities and other as of January 1, 2025	568,432		(112,542)		(110,062)		345,828
Face value of real estate-related securities acquired	26,740		—		—		26,740



Discounts on purchase of real estate-related securities, net of acquisition costs	(40)		—		—		(40)
Accretion of discount on real estate-related securities	1,541		—		—		1,541
Accretion of interest income on CLO subordinated note	4,072		—		—		4,072
Sale of real estate-related securities	(75,893)		261		—		(75,632)
Capitalized interest income on real estate-related securities	1,271		—		—		1,271
Principal payments received on real estate-related securities (1)	(128,776)		—		—		(128,776)
Proceeds from the repayment on the CLO subordinated note	(6,070)		—		—		(6,070)
Unrealized gain on real estate-related securities and other, net	—		1,292		—		1,292
Unrealized loss reclassified to CECL	—		71,022		—		71,022
Provision for credit losses	—		—		(72,042)		(72,042)
Real estate-related securities and other as of December 31, 2025	$	391,277	$	(39,967)	$	(182,104)	$	169,206

During the year ended December 31, 2025, the Company invested $26.7 million in CMBS. During the same period, the Company sold CMBS with an aggregate amortized cost basis of $75.9 million, resulting in net proceeds of $75.6 million and a loss of $261,000, the loss of which was reclassified from other comprehensive income (loss) as a decrease to other income (expense), net in the accompanying consolidated statements of operations. Unrealized gains and losses on CMBS and the CLO subordinated note are recorded in other comprehensive income (loss), with a portion of the amount subsequently reclassified into other income (expense), net in the accompanying consolidated statements of operations as securities are sold and gains and losses are recognized. During the year ended December 31, 2025, the Company recorded $1.3 million of net unrealized gain on its real estate-related securities and other, comprised of a $921,000 unrealized gain on CMBS and a $5.3 million unrealized loss on the CLO subordinated note, which are included in other comprehensive income (loss) in the accompanying consolidated statements of comprehensive income (loss) and a $5.7 million unrealized gain on the Company’s equity securities, which is included in unrealized gain (loss) on equity securities in the accompanying consolidated statements of operations.

During the year ended December 31, 2024, the Company recorded $24.0 million of net unrealized loss on its real estate-related securities and other, $3.0 million of which was realized as a loss in the accompanying consolidated statements of operations upon the sale of CMBS. The remaining $21.0 million of net unrealized loss is comprised of a $2.8 million unrealized loss on CMBS and a $2.3 million unrealized loss on the CLO subordinated note, which are included in other comprehensive income (loss) in the accompanying consolidated statements of comprehensive income (loss) and a $15.9 million unrealized loss

Current expected credit losses reflect the Company’s current estimate for potential credit losses related to real estate-related securities included in the Company’s consolidated balance sheets. Current expected credit losses are recorded in increase in provision for credit losses on the Company’s consolidated statements of operations. Refer to Note 2 — Summary of Significant Accounting Policies for further discussion of the Company’s current expected credit losses.

The following table presents the activity in the Company’s current expected credit losses related to its positions in two different tranches of a CMBS instrument for the years ended December 31, 2025 and 2024 (in thousands):


	CMBS
Current expected credit losses as of January 1, 2024	$	35,808
Provision for credit losses	74,254
Current expected credit losses as of January 1, 2025	110,062
Provision for credit losses	72,042
Current expected credit losses as of December 31, 2025	$	182,104

During the year ended December 31, 2023, the loan collateralizing one of the Company’s CMBS positions went into payment default and was appraised by a special servicer, resulting in an appraisal reduction that reduced cash flows received from the respective CMBS position during the year ended December 31, 2023. During the year ended December 31, 2024, the CMBS was modified to provide for an extended maturity date of July 2025 plus a six-month extension option, and to reduce the interest rate to a fixed 0.019% per annum. Additionally, during the year ended December 31, 2024, the Company received notice of preliminary sales transaction activity in relation to the underlying collateral of this CMBS position, as well as an additional position in a separate tranche of this instrument, indicative of a bid below the carrying value of the investment. The Company considered various factors, including the factors noted above, in determining whether a credit loss existed. The present value of cash flows expected to be collected from the CMBS positions did not exceed their amortized cost basis. As such, the Company determined both tranches of the security the Company is invested in had incurred a credit loss. During the year ended December 31, 2025, the properties collateralizing the CMBS positions were re-appraised by the special servicer resulting in a further reduction to the appraisal value. As a result, the Company concluded it is considered more likely than not that the Company will not be able to recover the amortized cost prior to disposal, resulting in a reclassification of unrealized losses previously determined to be driven by non-credit specific factors, as further discussed below. As of December 31, 2025, the CMBS was in maturity default as it was not repaid as anticipated during July 2025 and the extension option was not exercised.

As a result of the credit loss incurred, the Company recorded a $1.0 million increase to the provision for credit losses on the consolidated statements of operations during the year ended December 31, 2025 and reclassified $71.0 million of unrealized loss previously recorded in other comprehensive income (loss) in the accompanying consolidated statements of comprehensive income (loss) to increase in provision for credit losses on the consolidated statements of operations. During the year ended December 31, 2024, the Company recorded a $74.3 million increase to the provision for credit losses on the consolidated statements of operations. As of December 31, 2025, the amortized cost basis of the CMBS positions identified as having incurred a credit loss was $192.8 million prior to any credit loss provisions. The Company will continue to monitor for changes in expected cash flows in order to continue to measure the credit loss.

As of December 31, 2025, the Company had two CMBS positions and one CLO subordinated note with aggregate fair values of $36.9 million and $19.6 million, respectively, with unrealized losses reflected in other comprehensive income (loss) in the accompanying consolidated statements of comprehensive income (loss). Upon evaluating these securities at the individual security level, the Company concluded that the unrealized losses included in other comprehensive income (loss) as of December 31, 2025 were noncredit-related and would be recovered from the securities’ estimated future cash flows. The Company considered various factors in reaching this conclusion, including that the Company did not intend to sell the securities, it was not considered more likely than not that the Company would be forced to sell the securities prior to recovering the amortized cost, and there were no material credit events that would have caused the Company to conclude that the amortized cost would not be recovered.