v3.26.1
Loans Held-for-Investment, Net of Allowance for Credit Losses (Tables)
 3 Months Ended
Mar. 31, 2026
Receivables [Abstract]  
Schedule of Loans Held-for-Investment
The following tables summarize the Company’s loans held-for-investment by asset type, property type and geographic location as of March 31, 2026, and December 31, 2025:
March 31, 2026
(dollars in thousands)
Senior
Loans(1)
Unpaid principal balance$1,514,892 
Unamortized net deferred origination fees
(4,795)
Allowance for credit losses(147,298)
Carrying value$1,362,799 
Unfunded commitments$68,005 
Number of loans40 
Weighted average coupon(3)
5.6%
Weighted average years to maturity(4)
0.5
December 31, 2025
(dollars in thousands)
Senior
Loans(1)
B-Notes(2)
Total
Unpaid principal balance$1,677,017 $12,950 $1,689,967 
Unamortized net deferred origination fees
(6,323)— (6,323)
Allowance for credit losses(145,891)(21)(145,912)
Carrying value$1,524,803 $12,929 $1,537,732 
Unfunded commitments$77,399 $— $77,399 
Number of loans42 1 43 
Weighted average coupon(3)
6.2%8.0%6.2%
Weighted average years to maturity(4)
0.51.10.5
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(1)Loans primarily secured by a first priority lien on commercial real property and related personal property and also includes, when applicable, any companion subordinate loans or other investments.
(2)A subordinate loan secured by the same mortgage as the senior loan. During the three months ended March 31, 2026, the B-Note was sold, resulting in a realized loss on loan sale of $(18.0) thousand.
(3)Weighted average coupon inclusive of the impact of nonaccrual loans.
(4)Based on contractual maturity date, including maturity defaulted loans with no remaining term. Certain loans are subject to contractual extension options with such conditions stipulated in the applicable loan documents. Actual maturities may differ from contractual maturities stated herein as certain borrowers may have the right to prepay with or without paying a prepayment fee. The Company may also extend contractual maturities in connection with certain loan modifications.
Schedule of Loans Held-for-Investment by Property Type
(dollars in thousands)March 31, 2026December 31, 2025
Property TypeCarrying Value% of Loan PortfolioCarrying Value% of Loan Portfolio
Office$677,307 49.7%$670,061 43.6%
Multifamily379,432 27.8%480,737 31.3%
Hotel90,222 6.6%106,208 6.9%
Retail60,865 4.5%126,757 8.2%
Industrial113,869 8.4%113,791 7.4%
Other41,104 3.0%40,178 2.6%
Total$1,362,799 100.0%$1,537,732 100.0%
Schedule of Loans Held-for-Investment by Geographic Location
(dollars in thousands)March 31, 2026December 31, 2025
Geographic LocationCarrying Value% of Loan PortfolioCarrying Value% of Loan Portfolio
Northeast$385,065 28.3%$384,371 25.0%
Southwest334,966 24.6%330,382 21.5%
West155,870 11.4%233,741 15.2%
Midwest154,816 11.4%259,115 16.9%
Southeast332,082 24.3%330,123 21.4%
Total$1,362,799 100.0%$1,537,732 100.0%
Schedule of Loan Portfolio Activity
The following tables summarize activity related to loans held-for-investment, net of allowance for credit losses, for the three months ended March 31, 2026, and 2025:
Three Months Ended March 31, 2026
(in thousands)Amortized CostAllowance for Credit LossesCarrying Value
Balance at beginning of period$1,683,644 $(145,912)$1,537,732 
Originations, additional fundings, upsizing of loans and capitalized deferred interest(1)
14,279 — 14,279 
Repayments(176,481)— (176,481)
Transfers to loans held-for-sale, net of discount at time of transfer(12,873)— (12,873)
(Decrease) increase from net deferred fees
(128)— (128)
Amortization of net deferred fees1,656 — 1,656 
Benefit from (provision for) credit losses
— (1,086)(1,086)
Recoveries of previous write-offs— (300)(300)
Balance at end of period$1,510,097 $(147,298)$1,362,799 
Three Months Ended March 31, 2025
(in thousands)Amortized CostAllowance for Credit LossesCarrying Value
Balance at beginning of period$2,097,375 $(199,727)$1,897,648 
Originations, additional fundings, upsizing of loans and capitalized deferred interest10,475 — 10,475 
Repayments(83,781)— (83,781)
Transfers to real estate owned(2)
(63,353)— (63,353)
(Decrease) increase from net deferred fees
(329)— (329)
Amortization of net deferred fees1,910 — 1,910 
Provision for credit losses— (2,193)(2,193)
Write-offs(24,638)24,638 — 
Balance at end of period$1,937,659 $(177,282)$1,760,377 
______________________
(1)Includes fundings of $1.4 million of other investments classified as loans held-for-investment during the three months ended March 31, 2026.
(2)Total transfers to real estate owned of $71.0 million comprised of $63.4 million of loans held-for-investment and $7.6 million in related receivables.
Schedule of Allowance for Credit Losses
The following table presents the changes for the three months ended March 31, 2026, and 2025 in the allowance for credit losses on loans held-for-investment:
Loans Held-for-Investment
Unfunded Loan Commitments(1)
Specific ReserveGeneral ReserveTotal Specific and General ReserveTotal General ReserveTotal Allowance for Credit Losses
Three Months Ended March 31, 2026
Balance at beginning of period$104,466 $41,446 $145,912 $2,517 $148,429 
Provision for (benefit from) credit losses
14,869 (13,783)1,086 (1,302)(216)
Recoveries of previous write-offs300 — 300 — 300 
Balance at end of period$119,635 $27,663 $147,298 $1,215 $148,513 
Three Months Ended March 31, 2025
Balance at beginning of period$154,687 $45,040 $199,727 $1,303 $201,030 
Provision for (benefit from) credit losses
4,204 (2,011)2,193 1,577 3,770 
Write-off(24,638)— (24,638)— (24,638)
Balance at end of period$134,253 $43,029 $177,282 $2,880 $180,162 
______________________
(1)The current expected credit loss, or CECL, reserve for unfunded commitments is included in “Other liabilities” on the condensed consolidated balance sheets.
Schedule of Loans Held-for-Investment on Nonaccrual
The following table presents the changes in the amortized cost of loans held-for-investment on nonaccrual status for the three months ended March 31, 2026, and 2025:
Three Months Ended March 31,
(in thousands)20262025
Nonaccrual loan amortized cost at beginning of period $277,496 $453,052 
Addition of nonaccrual loan amortized cost65,873 — 
Reduction of nonaccrual loan amortized cost(150)(98,341)
Nonaccrual loan amortized cost at end of period$343,219 $354,711 
Schedule of Loans Held-for-Investment by Internal Risk Rating
The following table presents the number of loans, unpaid principal balance and carrying value by risk rating for loans held-for-investment as of March 31, 2026, and December 31, 2025:
(dollars in thousands)March 31, 2026December 31, 2025
Risk RatingNumber of LoansUnpaid Principal BalanceCarrying ValueNumber of LoansUnpaid Principal BalanceCarrying Value
14 $106,541 $105,840 7 $293,896 $292,614 
26 204,120 202,684 8 268,935 265,628 
319 674,457 658,000 20 706,363 676,253 
46 265,120 240,960 4 172,086 159,618 
55 264,654 155,315 4 248,687 143,619 
Total40 $1,514,892 $1,362,799 43 $1,689,967 $1,537,732 
The following tables present the carrying value of loans held-for-investment as of March 31, 2026, and December 31, 2025, by risk rating and year of origination:
March 31, 2026
(dollars in thousands)Origination Year
Risk Rating20262025202420232022PriorTotal
1$— $— $— $— $46,551 $59,289 $105,840 
2— — — — 68,342 134,342 202,684 
3— — — — 107,183 550,817 658,000 
4— — — 55,991 — 184,969 240,960 
5— — — — 34,818 120,497 155,315 
Total$— $— $— $55,991 $256,894 $1,049,914 $1,362,799 
Gross write-offs$— $— $— $— $— $— $— 
December 31, 2025
(dollars in thousands)Origination Year
Risk Rating20252024202320222021PriorTotal
1$— $— $— $113,678 $37,477 $141,459 $292,614 
2— — — 113,940 151,688 — 265,628 
3— — 54,844 60,395 161,020 399,994 676,253 
4— — — — 62,556 97,062 159,618 
5— — — 34,818 — 108,801 143,619 
Total$— $— $54,844 $322,831 $412,741 $747,316 $1,537,732 
Gross write-offs$— $— $— $— $(15,361)$(65,137)$(80,498)