v3.26.1
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