As discussed in Note 2, the Company obtains possession of REO as a result of foreclosures on the associated mortgage loans. The following tables detail activity in the Company's carrying value of REO for the three-month periods ended March 31, 2026 and 2025:


	Three-Month Periods Ended
	March 31, 2026			March 31, 2025
	Number of Properties	Carrying Value		Number of Properties	Carrying Value
		(In thousands)			(In thousands)
Beginning Balance (December 31, 2025 and 2024, respectively)	177	$	75,548	117	$	46,661
Transfers from mortgage loans	69	43,237		48	31,255
Capital expenditures and other adjustments to cost		391			(42)
Adjustments to record at the lower of cost or fair value		(3,280)			(4,480)
Dispositions	(47)	(14,729)		(30)	(7,947)
Ending Balance (March 31, 2026 and 2025, respectively)	199	$	101,167	135	$	65,447

During the three-month period ended March 31, 2026, the Company sold 47 REO properties, realizing a net gain (loss) of approximately $(3.1) million. During the three-month period ended March 31, 2025, the Company sold 30 REO properties, realizing a net gain (loss) of approximately $(0.9) million. Such realized gains (losses) are included in Realized gains (losses) on real estate owned, net, on the Company's Consolidated Statement of Operations. As of both March 31, 2026 and December 31, 2025, the Company's REO had primarily been obtained as a result of obtaining physical possession through foreclosure. Of the Company's total REO holdings, $55.2 million and $41.7 million were measured at fair value on a non-recurring basis as of March 31, 2026 and December 31, 2025, respectively.