Real Estate Owned, Net (Tables)
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3 Months Ended |
Mar. 31, 2026 |
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| Real Estate [Abstract] |
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| Schedule of Disposal Groups, Including Discontinued Operations |
The following table presents the REO assets and liabilities included in our consolidated balance sheets: | | | | | | | | | | | | | | | (in thousands) | March 31,
2026 | | December 31,
2025 | Building and building improvements | $ | 88,675 | | | $ | 86,350 | | Land and land improvements | 10,394 | | | 10,396 | | Accumulated Depreciation | (5,830) | | | (4,707) | | | | | | | Real estate owned, net | $ | 93,239 | | | $ | 92,039 | | | | | | Intangible real estate assets | $ | 18,844 | | | $ | 18,909 | | | | | | Accumulated amortization | (6,515) | | | (5,615) | | | | | | Intangible real estate assets, net(1) | $ | 12,329 | | | $ | 13,294 | | | | | | Lease liability | $ | (7,237) | | | $ | (7,239) | | Intangible real estate liabilities | (196) | | | (195) | | Accumulated amortization | 74 | | | 61 | | Real estate liabilities, net(2) | $ | (7,359) | | | $ | (7,373) | |
_____________________(1)Included in “Other assets” on the condensed consolidated balance sheets. (2)Included in “Other liabilities” on the condensed consolidated balance sheets.
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| Schedule of Income (Loss) from Real Estate Owned |
The following table presents the REO operations and related income (loss) included in the Company’s condensed consolidated statements of comprehensive (loss) income for the three months ended March 31, 2026, and 2025: | | | | | | | | | | | | | | | | | (in thousands) | Three Months Ended March 31, | | | | Real Estate Owned, Net | 2026 | | 2025 | | | | | | Rental income | | | | | | | | | Minimum lease payments | $ | 2,114 | | | $ | 2,291 | | | | | | | Variable lease payments | 792 | | | 189 | | | | | | | Total rental income | 2,906 | | | 2,480 | | | | | | | Other operating income | 314 | | | 614 | | | | | | | Revenue from real estate owned operations | 3,220 | | | 3,094 | | | | | | Expenses from real estate owned operations (1) | (5,760) | | | (4,504) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total | $ | (2,540) | | | $ | (1,410) | | | | | |
______________________ (1) Includes $(2.0) million and $(1.4) million of depreciation and amortization for the three months ended March 31, 2026, and 2025, respectively.
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| Schedule of Amortization of Lease Intangibles Included on Income |
The following table presents the amortization of lease intangibles included in the Company’s condensed consolidated statements of income for the three months ended March 31, 2026, and 2025: | | | | | | | | | | | | | | | | | | | | | | | | | | | (in thousands) | | | | | Three Months Ended March 31, | | Income Statement Location | | | | | | 2026 | | | | 2025 | | Asset | | | | | | | | | | | | | In-place lease intangibles | Expenses from real estate owned operations | | | | | | $ | 778 | | | | | $ | 735 | | | Lease commissions | Expenses from real estate owned operations | | | | | | 105 | | | | | 61 | | | Above-market lease intangibles | Revenue from real estate owned operations | | | | | | (57) | | | | | (70) | | | Liability | | | | | | | | | | | | | Below-market lease intangibles | Revenue from real estate owned operations | | | | | | 14 | | | | | 8 | | | | | | | | | | | | | |
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| Schedule of Finite-Lived Intangible Assets, Future Amortization Expense |
The following table presents the amortization of lease intangibles for each of the succeeding fiscal years: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (in thousands) | | In-place Lease Intangible Assets | | Above-market Lease intangible Assets | | Lease Commissions | | Below-market Lease Intangible Liabilities | | | | 2026 | | $ | 1,837 | | | $ | 118 | | | $ | 344 | | | $ | (42) | | | | | 2027 | | 1,135 | | | 74 | | | 460 | | | (27) | | | | | 2028 | | 1,085 | | | 57 | | | 446 | | | (27) | | | | | 2029 | | 807 | | | 15 | | | 440 | | | (26) | | | | 2030 | | 369 | | | — | | | 299 | | | — | | | | | Thereafter | | 189 | | | — | | | 470 | | | — | | | |
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| Schedule of Below Market Lease, Future Amortization Income |
The following table presents the amortization of lease intangibles for each of the succeeding fiscal years: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (in thousands) | | In-place Lease Intangible Assets | | Above-market Lease intangible Assets | | Lease Commissions | | Below-market Lease Intangible Liabilities | | | | 2026 | | $ | 1,837 | | | $ | 118 | | | $ | 344 | | | $ | (42) | | | | | 2027 | | 1,135 | | | 74 | | | 460 | | | (27) | | | | | 2028 | | 1,085 | | | 57 | | | 446 | | | (27) | | | | | 2029 | | 807 | | | 15 | | | 440 | | | (26) | | | | 2030 | | 369 | | | — | | | 299 | | | — | | | | | Thereafter | | 189 | | | — | | | 470 | | | — | | | |
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| Schedule of Future Minimum Lease Payments |
The following table presents the future minimum lease payments to be collected under non-cancelable operating leases, excluding tenant reimbursements of expenses, as of March 31, 2026: | | | | | | | | | | | | (in thousands) | | Contractual Lease Payments | | | | | | | | | 2026 | | $ | 5,747 | | | | | 2027 | | 6,801 | | | | | 2028 | | 6,725 | | | | | 2029 | | 6,527 | | | | 2030 | | 3,995 | | | | | Thereafter | | 7,160 | | | |
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