FAIR VALUE MEASUREMENTS (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
| Fair Value Disclosures [Abstract] |
|
| Schedule of Net Book Value and Fair Value |
In accordance with the fair value hierarchy described above, the following table details the net book value and fair value of the financial instruments described above as of December 31, 2025 and 2024 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | December 31, 2024 | | | | Net Book Value | | Fair Value | | Net Book Value | | Fair Value | | Level | Financial assets: | | | | | | | | | | First mortgage loans | $ | 3,074,451 | | | $ | 3,131,673 | | | $ | 3,085,104 | | | $ | 3,141,665 | | | 3 | Liquid corporate senior loans | 22,664 | | | 19,294 | | | 35,653 | | | 32,062 | | | (1) | Corporate senior loans | 357,474 | | | 361,845 | | | 250,120 | | | 256,543 | | | 3 | Total financial assets | $ | 3,454,589 | | | $ | 3,512,812 | | | $ | 3,370,877 | | | $ | 3,430,270 | | | | | | | | | | | | | | Financial liabilities: | | | | | | | | | | Repurchase facilities, notes payable and credit facilities | $ | 3,102,195 | | | $ | 3,052,010 | | | $ | 3,182,614 | | | $ | 3,098,368 | | | 2 | Total financial liabilities | $ | 3,102,195 | | | $ | 3,052,010 | | | $ | 3,182,614 | | | $ | 3,098,368 | | | |
____________________________________ (1)As of December 31, 2025, $15.6 million and $3.7 million of the Company’s liquid corporate senior loans were classified in Level 2 and Level 3 of the fair value hierarchy, respectively. As of December 31, 2024, $26.0 million and $6.1 million of the Company’s liquid corporate senior loans were classified in Level 2 and Level 3 of the fair value hierarchy, respectively.
|
| Schedule of Fair Value, Assets and Liabilities Measured on a Recurring Basis |
In accordance with the fair value hierarchy described above, the following tables show the fair value of the Company’s financial assets that are required to be measured at fair value on a recurring basis as of December 31, 2025 and 2024 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | Balance as of December 31, 2025 | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | Financial assets: | | | | | | | | CMBS | $ | 111,762 | | | $ | — | | | $ | 64,222 | | | $ | 47,540 | | CLO subordinated note | 19,555 | | | — | | | — | | | 19,555 | | | | | | | | | | Equity securities | 37,889 | | | 37,165 | | | — | | | 724 | | | | | | | | | | Total financial assets | $ | 169,206 | | | $ | 37,165 | | | $ | 64,222 | | | $ | 67,819 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance as of December 31, 2024 | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | Financial assets: | | | | | | | | CMBS | $ | 286,757 | | | $ | — | | | $ | 241,341 | | | $ | 45,416 | | CLO subordinated note | 26,901 | | | — | | | — | | | 26,901 | | Equity security | 32,170 | | | 31,547 | | | — | | | 623 | | | | | | | | | | Total financial assets | $ | 345,828 | | | $ | 31,547 | | | $ | 241,341 | | | $ | 72,940 | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| Schedule of Reconciliation of the Changes in Liabilities With Level 3 Inputs |
The following are reconciliations of the changes in financial assets with Level 3 inputs in the fair value hierarchy for the years ended December 31, 2025 and 2024 (in thousands): | | | | | | | | | | | Level 3 | Beginning Balance, January 1, 2024 | | $ | 129,081 | | Total gains and losses: | | | Unrealized loss on CMBS included in other comprehensive income (loss), net | | (12,486) | | Current expected credit losses | | (74,254) | | Unrealized loss on CLO subordinated note | | (2,317) | | Purchases and payments received: | | | Conversion to equity securities (1) | | 654 | | Investment in CLO subordinated note | | 31,825 | | Accreted interest income | | 1,572 | | Discounts, net | | (2,349) | | Capitalized interest income | | 1,214 | | Balance, December 31, 2024 | | $ | 72,940 | | Total gains and losses: | | | Unrealized gain on CMBS included in other comprehensive income (loss), net | | 697 | | Current expected credit losses | | (1,020) | | Unrealized loss on CLO subordinated note | | (5,349) | | Purchases and payments received: | | | Proceeds from the repayment on the CLO subordinated note | | (6,070) | | | | | Accreted interest income | | 4,072 | | | | | Discounts, net | | 1,278 | | Capitalized interest income | | 1,271 | | | | | | | | Ending Balance, December 31, 2025 | | $ | 67,819 | |
____________________________________ (1)During the year ended December 31, 2024, two of the Company’s defaulted liquid corporate senior loans were equitized into a Level 3 equity security.
|
| Schedule of Discount Rates and Terminal Capitalization rates of the Company’s Impairment Test |
The following summarizes the ranges of discount rates and terminal capitalization rates used for the Company’s impairment test for the real estate assets during the years ended December 31, 2025 and 2024: | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2025 | | Year Ended December 31, 2024 | Discount Rate | | Terminal Capitalization Rate | | Discount Rate | | Terminal Capitalization Rate | 9.5% - 11.9% | | 9.0% - 13.3% | | 7.8% - 11.7% | | 7.3% - 11.2% |
|
| Schedule of Impairment Charges by Asset Class |
The following table presents the impairment charges by asset class recorded during the years ended December 31, 2025, 2024 and 2023 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, | | | 2025 | | 2024 | | 2023 | Asset class impaired: | | | | | | | Land | | $ | 1,067 | | | $ | 8,487 | | | $ | 4,980 | | Buildings, fixtures and improvements | | 8,122 | | | 39,780 | | | 13,841 | | Intangible lease assets | | 709 | | | 3,979 | | | 1,568 | | Intangible lease liabilities | | (38) | | | (3) | | | 15 | | Condominium developments | | — | | | 9,066 | | | 14,675 | | Total impairment loss | | $ | 9,860 | | | $ | 61,309 | | | $ | 35,079 | |
|