Use of Special Purpose Entities (SPE) and Variable Interest Entities (VIE) (Tables)

3 Months Ended

Mar. 31, 2026

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Multi-family loans consist of the following as of March 31, 2026 and December 31, 2025, respectively (dollar amounts in thousands):


	March 31, 2026		December 31, 2025
Investment amount	$	59,535	$	59,102
Unrealized losses, net	(3,625)		(3,626)
Total, at Fair Value	$	55,910	$	55,476

The following table presents condensed statements of operations for non-Company-sponsored VIEs for the three months ended March 31, 2026 and 2025, respectively (dollar amounts in thousands). Intercompany balances have been eliminated for purposes of this presentation.


	For the Three Months Ended March 31,
	2026						2025
	Consolidated SLST		Consolidated Real Estate		Total		Consolidated SLST		Consolidated Real Estate		Total
Interest income	$	13,885	$	—	$	13,885	$	10,740	$	—	$	10,740
Interest expense	11,120		—		11,120		6,964		—		6,964
Total net interest income	2,765		—		2,765		3,776		—		3,776

Income from real estate	—		12,728		12,728		—		18,486		18,486
Expenses related to real estate	—		14,427		14,427		—		20,027		20,027
Total net loss from real estate	—		(1,699)		(1,699)		—		(1,541)		(1,541)


Unrealized (losses) gains, net	(96)		—		(96)		3,264		—		3,264
Losses on derivative instruments, net	—		(41)		(41)		—		(15)		(15)
Impairment of real estate	—		—		—		—		(3,565)		(3,565)

Other income	—		51,673		51,673		—		1		1
Total other (loss) income	(96)		51,632		51,536		3,264		(3,579)		(315)



Net income (loss)	2,669		49,933		52,602		7,040		(5,120)		1,920
Net (income) loss attributable to non-controlling interest in Consolidated VIEs	—		(37,965)		(37,965)		—		5,090		5,090
Net income attributable to Company	$	2,669	$	11,968	$	14,637	$	7,040	$	(30)	$	7,010

Schedule of Assets and Liabilities of Consolidated VIE's

The following table presents a summary of the assets, liabilities and non-controlling interests of the Company's securitizations, Consolidated SLST and Consolidated Real Estate VIEs as of March 31, 2026 (dollar amounts in thousands). Intercompany balances have been eliminated for purposes of this presentation.


			Other VIEs
	Financing VIEs			Consolidated SLST		Consolidated Real Estate		Total
Cash and cash equivalents	$	—		$	—	$	3,914	$	3,914
Residential loans, at fair value	2,598,709			1,138,067		—		3,736,776
Real estate, net held in Consolidated VIEs (1)	—			—		344,507		344,507

Other assets	106,105			4,374		43,306		153,785
Total assets	$	2,704,814		$	1,142,441	$	391,727	$	4,238,982

Collateralized debt obligations ($3,115,903 at fair value and $353,041 at amortized cost, net)	$	2,485,227		$	983,717	$	—	$	3,468,944
Mortgages payable on real estate, net in Consolidated VIEs (2)	—			—		276,032		276,032
Other liabilities	14,720			10,693		4,852		30,265
Total liabilities	$	2,499,947		$	994,410	$	280,884	$	3,775,241
Redeemable non-controlling interest in Consolidated VIEs (3)	$	—		$	—	$	4,078	$	4,078
Non-controlling interest in Consolidated VIEs (4)	$	—		$	—	$	(2,847)	$	(2,847)
Net investment (5)	$	204,867		$	148,031	$	109,612	$	462,510

(1)Included in real estate, net in the accompanying condensed consolidated balance sheets.

(2)Included in mortgages payable on real estate, net in the accompanying condensed consolidated balance sheets.

(3)Represents redeemable third-party ownership of membership interests in Consolidated Real Estate VIEs. See Redeemable Non-Controlling Interest in Consolidated VIEs below.

(4)Represents third-party ownership of membership interests in Consolidated Real Estate VIEs.

(5)The net investment amount is the maximum amount of the Company's investment that is at risk to loss and represents the difference between the carrying value of total assets and total liabilities held by VIEs, less non-controlling interests, if any.

The following table presents a summary of the assets, liabilities and non-controlling interests of the Company's securitizations, Consolidated SLST and Consolidated Real Estate VIEs as of December 31, 2025 (dollar amounts in thousands). Intercompany balances have been eliminated for purposes of this presentation.


			Other VIEs
	Financing VIEs		Consolidated SLST		Consolidated Real Estate		Total
Cash and cash equivalents	$	—	$	—	$	3,853	$	3,853
Residential loans, at fair value	2,608,535		1,165,677		—		3,774,212
Real estate, net held in Consolidated VIEs (1)	—		—		424,655		424,655
Other assets	132,428		4,489		27,923		164,840
Total assets	$	2,740,963	$	1,170,166	$	456,431	$	4,367,560

Collateralized debt obligations ($3,148,157 at fair value and $363,645 at amortized cost, net)	$	2,504,883	$	1,006,919	$	—	$	3,511,802
Mortgages payable on real estate, net in Consolidated VIEs (2)	—		—		332,131		332,131
Other liabilities	17,317		10,368		9,655		37,340
Total liabilities	$	2,522,200	$	1,017,287	$	341,786	$	3,881,273
Redeemable non-controlling interest in Consolidated VIEs (3)	$	—	$	—	$	3,016	$	3,016
Non-controlling interest in Consolidated VIEs (4)	$	—	$	—	$	374	$	374
Net investment (5)	$	218,763	$	152,879	$	111,255	$	482,897

(1)Included in real estate, net in the accompanying condensed consolidated balance sheets.

(2)Included in mortgages payable on real estate, net in the accompanying condensed consolidated balance sheets.

(3)Represents redeemable third-party ownership of membership interests in Consolidated Real Estate VIEs. See Redeemable Non-Controlling Interest in Consolidated VIEs below.

(4)Represents third-party ownership of membership interests in Consolidated Real Estate VIEs.

The following table presents the carrying value and estimated fair value of the Company’s financial instruments at March 31, 2026 and December 31, 2025, respectively (dollar amounts in thousands):


		March 31, 2026				December 31, 2025
	Fair Value Hierarchy Level	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Financial Assets:
Cash and cash equivalents	Level 1	$	208,915	$	208,915	$	210,333	$	210,333
Investment securities available for sale	Level 2	6,960,313		6,960,313		6,904,781		6,904,781
Residential loans	Level 3	4,498,027		4,498,027		4,358,175		4,358,175
Residential loans held for sale	Level 3	121,607		121,607		80,707		80,707
Multi-family loans	Level 3	55,910		55,910		55,476		55,476
Equity investments	Level 3	23,468		23,468		24,711		24,711
Interest rate caps	Level 2	684		684		31		31
IRLCs	Level 3	1,155		1,155		691		691
Mortgage servicing rights	Level 3	19,965		19,965		20,893		20,893
Financial Liabilities:
Repurchase agreements	Level 2	7,019,017		7,019,017		6,753,417		6,753,417
Collateralized debt obligations:
Residential loan securitizations at amortized cost, net	Level 3	353,041		336,430		363,645		349,037
Residential loan securitizations at fair value	Level 2	2,068,484		2,068,484		2,075,962		2,075,962
Consolidated SLST	Level 3	983,717		983,717		1,006,919		1,006,919
Non-Agency RMBS re-securitization	Level 2	63,702		63,702		65,276		65,276
Subordinated debentures	Level 3	45,000		39,355		45,000		40,526
Derivative liabilities	Level 2	1,523		1,523		—		—
Senior unsecured notes:
Senior unsecured notes at amortized cost, net	Level 2	—		—		99,585		99,465
Senior unsecured notes at fair value	Level 2	339,648		339,648		260,852		260,852
Mortgages payable on real estate	Level 3	276,032		269,948		332,131		325,301

Schedule of Redeemable Noncontrolling Interest in Consolidated VIEs

The following table presents activity in redeemable non-controlling interest in Consolidated VIEs for the three months ended March 31, 2026 and 2025, respectively (dollar amounts in thousands):


	For the Three Months Ended March 31,
	2026		2025
Beginning balance	$	3,016	$	12,359

Distributions	—		(687)
Net income (loss) attributable to redeemable non-controlling interest in Consolidated VIEs	19,980		(3,627)
Adjustment of redeemable non-controlling interest to estimated redemption value (1)	(18,918)		5,337
Ending balance	$	4,078	$	13,382

(1)The Company determines the fair value of the redeemable non-controlling interest utilizing market assumptions and discounted cash flows. The Company applies a discount rate to the estimated future cash flows from the multi-family apartment properties held by the applicable Consolidated VIEs that are allocatable to the redeemable non-controlling interest. This fair value measurement is generally based on unobservable inputs and, as such, is classified as Level 3 in the fair value hierarchy. Significant unobservable inputs utilized in the estimation of fair value of redeemable non-controlling interest as of March 31, 2026 include a weighted average capitalization rate of 5.9% (ranges from 5.0% to 6.3%) and a weighted average discount rate of 15.1% (ranges from 14.1% to 15.6%).

Schedule of Classification and Carrying Value of Unconsolidated VIEs

The following tables present the classification and carrying value of unconsolidated VIEs as of March 31, 2026 and December 31, 2025, respectively (dollar amounts in thousands):


	March 31, 2026
	Multi-family loans, at fair value		Investment securities available for sale, at fair value		Equity investments, at fair value		Other assets		Total

Non-Agency RMBS	$	—	$	20,510	$	—	$	—	$	20,510
Preferred equity investments in multi-family properties	55,910		—		23,468		—		79,378
Other investments	—		—		—		2,000		2,000
Maximum exposure	$	55,910	$	20,510	$	23,468	$	2,000	$	101,888


	December 31, 2025
	Multi-family loans, at fair value		Investment securities available for sale, at fair value		Equity investments, at fair value		Other assets		Total
Non-Agency RMBS	$	—	$	21,476	$	—	$	—	$	21,476
Preferred equity investments in multi-family properties	55,476		—		24,711		—		80,187
Other investments	—		—		—		2,000		2,000
Maximum exposure	$	55,476	$	21,476	$	24,711	$	2,000	$	103,663

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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