v3.26.1
Segment Reporting
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Reporting
24. Segment Reporting

As of March 31, 2026, the Company operates in two reportable segments: (i) investment portfolio and (ii) Constructive. The accounting policies applied to the segments are the same as those described in Note 2 to the Consolidated Financial Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, with the exception of allocations of certain corporate expenses not directly assigned or allocated to one of the Company's two reportable segments. The activities within Corporate/Other are reconciling items to the condensed consolidated financial statements and primarily consist of general and administrative expenses not directly attributable to the investment portfolio or Constructive, interest expense on senior unsecured notes and subordinated debentures (see Note 14), financing transaction costs unrelated to securitizations and preferred stock dividends.

The Company is in the business of acquiring, investing in, financing and managing primarily mortgage-related residential assets (the “investment portfolio”), which includes residential loans, investment securities, multi-family loans and equity investments and single-family rental properties. The Company derives revenues from management of the investment portfolio, including interest income, net income (loss) from real estate and other income. On July 15, 2025, the Company acquired the outstanding 50% ownership interests in Constructive through the consummation of a membership interest purchase agreement. Constructive is a business purpose loan lender specializing in rental and transitional loans for real estate investors that derives revenues from the origination and sale of loans. In the normal course of business, business purpose loans are originated by Constructive and may subsequently be transferred to the investment portfolio segment as whole loans. All business purpose loans are accounted for under the fair value option and amounts transferred between reportable segments are accounted for at fair value at the time of transfer.

The structure of the reportable segments is differentiated by the nature of the business activities, which is consistent with the reporting structure of the Company and the financial information provided to the Company’s chief operating decision maker (“CODM”). The CODM is the Company’s Chief Executive Officer. The operating results of the Company’s investment portfolio and Constructive are regularly reviewed by the CODM based upon segment assets and net income (loss) before income taxes.

The CODM utilizes the information reviewed to evaluate financial performance, benchmark results to those of peers and monitor actual performance against projected performance. Net income (loss) before income taxes is a key determinant of the Company’s book value (calculated as the Company’s stockholders’ equity attributable to common stockholders divided by outstanding common shares), a measure that is used by the CODM to evaluate Company performance overall and with respect to its peers and which is a component of the calculation of management’s compensation. Based upon the inputs discussed above, strategy and financing and capital and resource allocations rely on the determination of the CODM.

Prior to the acquisition of a controlling financial interest in Constructive in July 2025, the Company consisted of a single operating and reporting segment and the condensed consolidated financial statements and notes thereto were a single reportable segment. For the three months ended March 31, 2025, the CODM also considered significant, and regularly reviewed, consolidated salaries and benefits expense in the amounts of approximately $7.8 million, which is included in general and administrative expenses in the accompanying condensed consolidated statements of operations.
The following tables present financial information by reportable segment for the three months ended March 31, 2026, respectively, which in total reconciles to the same data for the Company on a consolidated basis (dollar amounts in thousands):

For the Three Months Ended March 31, 2026
Investment Portfolio
Constructive
Corporate/Other
Total
NET INTEREST INCOME:
Interest income$168,570 $3,478 $17 $172,065 
Interest expense111,311 2,969 9,374 123,654 
Total net interest income (loss)
57,259 509 (9,357)48,411 
NET LOSS FROM REAL ESTATE:
Rental income12,625 — — 12,625 
Other real estate income1,943 — — 1,943 
Total income from real estate14,568 — — 14,568 
Interest expense, mortgages payable on real estate3,821 — — 3,821 
Depreciation expense
4,623 — — 4,623 
Other real estate expenses8,726 — — 8,726 
Total expenses related to real estate17,170 — — 17,170 
Total net loss from real estate(2,602)— — (2,602)
OTHER INCOME (LOSS):
Realized losses, net
(10,680)— — (10,680)
Unrealized (losses) gains, net
(73,772)— 11,204 (62,568)
Gain on derivative instruments, net
39,570 439 47,805 87,814 
Mortgage banking activities, net— 15,330 — 15,330 
Income from equity investments
721 — — 721 
Impairment of real estate
(2,231)— — (2,231)
Other income (loss)
52,869 — (308)52,561 
Total other income
6,477 15,769 58,701 80,947 
GENERAL, ADMINISTRATIVE AND OPERATING EXPENSES:
General and administrative expenses
5,950 11,596 6,941 24,487 
Portfolio operating expenses6,137 — — 6,137 
Loan origination costs
— 4,025 — 4,025 
Financing transaction costs
1,947 — 3,435 5,382 
Total general, administrative and operating expenses
14,034 15,621 10,376 40,031 
INCOME FROM OPERATIONS BEFORE INCOME TAXES
47,100 657 38,968 86,725 
Income tax expense
15 — 144 159 
NET INCOME
47,085 657 38,824 86,566 
Net income attributable to non-controlling interests
(37,965)— — (37,965)
NET INCOME ATTRIBUTABLE TO COMPANY
9,120 657 38,824 48,601 
Preferred stock dividends— — (11,704)(11,704)
NET INCOME ATTRIBUTABLE TO COMPANY'S COMMON STOCKHOLDERS
$9,120 $657 $27,120 $36,897 
The following table presents the Company's assets by reportable segment as of March 31, 2026, which in total reconciles to the same data for the Company on a consolidated basis (dollar amounts in thousands):

Investment Portfolio (1)
Constructive (2)
Corporate/Other
Total
Total Assets
$12,266,535 $300,189 $223,617 $12,790,341 

(1)The Company had investments in equity method investees in the amount of approximately $23.5 million as of March 31, 2026 (see Note 6). During the three months ended March 31, 2026, the Company's expenditures for long-lived assets totaled approximately $1.0 million.
(2)Goodwill in the amount of approximately $22.4 million is allocated to Constructive (see Note 23).