v3.26.1
Commercial Mortgage Loans, Held for Investment (Tables)
 3 Months Ended
Mar. 31, 2026
Receivables [Abstract]  
Schedule of Loans Receivable by Class
The following table presents a summary of the Company's commercial mortgage loans, held for investment, carrying values by class (dollars in thousands):
March 31, 2026December 31, 2025
Senior loans$4,545,717 $4,376,873 
Mezzanine loans50,284 44,563 
Total gross carrying value of loans4,596,001 4,421,436 
General allowance for credit losses32,838 34,196 
Specific allowance for credit losses16,335 4,106 
Less: Allowance for credit losses49,173 38,302 
Total commercial mortgage loans, held for investment, net$4,546,828 $4,383,134 
The following tables present the composition by loan collateral type and region of the Company's commercial mortgage loans, held for investment portfolio (dollars in thousands):
March 31, 2026December 31, 2025
Loan Collateral Type Par Value Percentage Par ValuePercentage
Multifamily$3,647,729 79.3 %$3,434,672 77.5 %
Hospitality490,423 10.6 %515,144 11.6 %
Industrial272,910 5.9 %309,522 7.0 %
Office57,112 1.2 %58,259 1.3 %
Retail1,986 — %1,986 — %
Other139,118 3.0 %115,928 2.6 %
Total $4,609,278 100.0 %$4,435,511 100.0 %
March 31, 2026December 31, 2025
Loan RegionPar Value Percentage Par Value Percentage
Southeast$1,840,930 39.8 %$1,832,831 41.4 %
Southwest1,496,133 32.5 %1,431,471 32.3 %
Mideast381,080 8.3 %348,750 7.9 %
Far West185,940 4.0 %239,874 5.4 %
New England136,899 3.0 %125,982 2.8 %
Great Lakes128,674 2.8 %108,095 2.4 %
Rocky Mountain113,030 2.5 %76,180 1.7 %
Various(1)
326,592 7.1 %272,328 6.1 %
Total$4,609,278 100.0 %$4,435,511 100.0 %
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(1) Represents loans secured by a portfolio of properties located in various parts of the United States.
Schedule of Commercial Mortgage Loans Held for Investment Activity
For the three months ended March 31, 2026 and year ended December 31, 2025, the activity in the Company's commercial mortgage loans, held for investment carrying values, was as follows (dollars in thousands):
Three months ended March 31, 2026Year Ended
December 31, 2025
Amortized cost, beginning of period$4,421,436 $4,986,750 
Acquisitions and originations496,306 1,156,575 
Principal repayments(319,501)(1,420,373)
Dispositions— (35,116)
Principal charge-off(2,617)(32,860)
Deferred fees and other items(1)
(801)(10,304)
Amortization/accretion of fees and other items(1)
1,972 9,557 
Transfer to real estate owned(2)
— (197,396)
Transfer to held for sale— (33,909)
Cost recovery(794)(1,488)
Amortized cost, end of period$4,596,001 $4,421,436 
Allowance for credit losses, beginning of period$(38,302)$(78,083)
General (provision)/benefit for credit losses1,358 12,669 
Specific (provision)/benefit for credit losses(14,846)(5,748)
Charge offs from specific allowance for credit losses2,617 32,860 
Allowance for credit losses, end of period$(49,173)$(38,302)
Total commercial mortgage loans, held for investment, net $4,546,828 $4,383,134 
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(1) Other items primarily consist of purchase discounts or premiums and deferred origination expenses.
(2) For additional details on properties obtained through foreclosure or deed-in-lieu of foreclosure, see Note 8 - Real Estate Owned.
Schedule of Changes in Allowance for Credit Losses
The following table presents the quarterly changes in the Company's allowance for credit losses for the three months ended March 31, 2026 (dollars in thousands):
General Allowance for Credit Losses
Specific Allowance for Credit LossesFundedUnfundedTotalTotal Allowance for Credit Losses
December 31, 2025$4,106 $34,196 $296 $34,492 $38,598 
Changes:
Provision/(Benefit)14,846 (1,358)38 (1,320)13,526 
Charge offs(2,617)— — — (2,617)
March 31, 2026$16,335 $32,838 $334 $33,172 $49,507 
Schedule of Past Due Loans
The following table presents a summary of the loans amortized cost basis as of March 31, 2026 (dollars in thousands):
CurrentLess than 90 days past due
90 or more days past due(1)
Total
As of March 31, 2026$4,254,872 $150,513 $190,616 $4,596,001 
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(1) Comprised of six mortgage loans, one of which was collateralized by an office property and the other five by multifamily properties. The mortgage loan collateralized by an office property and three mortgage loans collateralized by multifamily properties have been designated as non-performing.
Schedule of Loans on Nonaccrual Status
The following table presents the amortized cost basis of our non-performing loans as of March 31, 2026 and December 31, 2025 (dollars in thousands):
March 31, 2026December 31, 2025
Non-performing loan amortized cost at beginning of year, January 1$213,980 $133,230 
Addition of non-performing loan amortized cost150,660 346,323 
Less: Removal of non-performing loan amortized cost55,746 265,573 
Non-performing loan amortized cost end of period(1)
$308,894 $213,980 
________________________
(1) As of each of March 31, 2026 and December 31, 2025, the Company had seven loans designated as non-performing. As of March 31, 2026, three non-performing loans were placed on cost recovery status, one of which was collateralized by an office property and the other two of which were collateralized by multifamily properties, with a combined specific allowance for credit losses of $14.3 million. The other four were collateralized by multifamily properties and placed on non-accrual status, one of which had a specific allowance for credit losses of $2.0 million. As of December 31, 2025, four non-performing loans were placed on cost recovery status, one of which was collateralized by an office property and the other three by multifamily properties with a combined specific allowance for credit losses of $4.1 million. The other three were collateralized by multifamily properties and placed on non-accrual status with no specific allowance for credit losses.
Schedule of Allocation by Risk Rating
The following tables present the par value and amortized cost of our commercial mortgage loans, held for investment as of March 31, 2026 and December 31, 2025, by the Company’s internal risk rating and year of origination (dollars in thousands):
March 31, 2026
Amortized Cost by Year of Origination
Risk RatingNumber of LoansTotal Par Value20262025202420232022PriorTotal Amortized Cost% of Portfolio
1—$— $— $— $— $— $— $— $— — %
21403,179,650 335,970 1,053,023 969,099 296,753 285,640 228,836 3,169,321 69.0 %
326964,906 — 71,915 383,275 129,299 268,147 111,791 964,427 21.0 %
47281,406 — — 35,880 — 138,732 106,792 281,404 6.1 %
54183,316 — — — — 44,483 136,366 180,849 3.9 %
Total177$4,609,278 $335,970 $1,124,938 $1,388,254 $426,052 $737,002 $583,785 $4,596,001 100.0 %
Allowance for credit losses(49,173)
Total carrying value, net$4,546,828 
December 31, 2025
Amortized Cost by Year of Origination
Risk RatingNumber of LoansTotal Par Value20252024202320222021PriorTotal Amortized Cost% of Portfolio
1—$— $— $— $— $— $— $— $— — %
21373,213,933982,678 1,175,376 322,490 387,548 313,728 20,559 3,202,37972.4 %
322848,719— 305,158 129,792 220,090 178,500 14,756 848,29619.2 %
46246,682— — — 138,889 107,790 — 246,6795.6 %
54126,177 — — — 44,483 58,504 21,095 124,082 2.8 %
Total169$4,435,511 $982,678 $1,480,534 $452,282 $791,010 $658,522 $56,410 $4,421,436 100.0 %
Allowance for credit losses(38,302)
Total carrying value, net$4,383,134