v3.26.1
Borrowings
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
Borrowings Borrowings
The table below summarizes our borrowing arrangements as of March 31, 2026 and December 31, 2025. Our borrowing arrangements include our secured financing facilities and a revolving credit facility.
March 31, 2026December 31, 2025
$ in thousandsCurrent Maturity
Extension Options(1)
Weighted Average Interest Rate(2)
Maximum Facility SizeAvailable CapacityAmount OutstandingFair ValueAmount OutstandingFair Value
Term Lending Agreements
INCREF Lending IIMatch-termMatch-term5.94%$300,000 $144,603 $155,397 $155,397 $155,027 $155,033 
INCREF Lending IIIMatch-termMatch-term5.17%72,840 4,840 68,000 68,000 $68,000 $68,000 
Secured Lending Agreements
Repurchase Agreements
Morgan Stanley Bank(3)
Dec 2027Dec 20285.33%750,000 69,430 680,570 680,474 713,335 713,335 
CitibankJul 2027Jul 20295.07%1,000,000 417,996 582,004 582,004 590,301 590,401 
Barclays(3)
Apr 2027Apr 20295.15%500,000 77,106 422,894 422,894 328,897 328,897 
Wells Fargo(3)
Mar 2028Mar 20315.16%1,200,000 629,095 570,905 570,892 340,663 340,664 
Bank of Montreal(3)
Jul 2027Jul 20305.00%256,600 — 256,600 256,600 256,600 256,600 
INCREF Repurchase I(3)
Feb 2027Feb 20305.15%250,000 74,964 175,036 175,066 $129,589 $129,646 
INCREF Repurchase IIFeb 2029Feb 20295.12%250,000 116,992 133,008 133,008 N/AN/A
Total secured financing facilities$4,579,440 $1,535,026 $3,044,414 $3,044,335 $2,582,412 $2,582,576 
Revolving Credit Facility(4)
6.57%$162,000 $146,000 $16,000 $16,000 $55,000 $55,000 
(1)Assumes all available extension options are exercised.
(2)Represents the weighted average interest rate in effect as of March 31, 2026.
(3)Certain extension options for these facilities are subject to lender approval and compliance with certain financial and administrative covenants.
(4)Maturity date is aligned with the Company’s ability to call remaining outstanding capital committed under the Invesco Subscription Agreement, as further explained below.
Borrowings denominated in U.S. dollars under our secured financing facilities and revolving credit facility bear interest at one-month Term SOFR plus a spread. Euro denominated borrowings bear interest at three-month Euribor plus a spread, and our British pound sterling denominated borrowings bear interest at three-month SONIA plus a spread. Our secured financing facilities are subject to certain non-financial and financial covenants, including liquidity, tangible net worth and leverage covenants. We were in compliance with these covenants as of March 31, 2026.
Term Lending Agreements
INCREF Lending II and INCREF Lending III provide asset-based financing on a non-mark-to-market basis with partial recourse to the Company and match-term to the underlying loans. We have pledged certain commercial real estate loan investments with a fair value of approximately $198.7 million and $85.0 million as collateral for INCREF Lending II and INCREF Lending III, respectively. We segregate the commercial real estate loans that we have pledged as collateral in our books and records. Our term lending agreement counterparties have the right to resell or repledge the collateral posted but have the obligation to return the pledged collateral upon maturity of the term lending agreement.
Secured Lending Agreements
In February 2026, we entered into a $250.0 million Master Repurchase Agreement with a financial institution (“INCREF Repurchase II”) that provides asset-based financing with partial recourse to the Company. We have pledged certain commercial real estate loan investments with a fair value of approximately $166.3 million as collateral for INCREF Repurchase II.
We have entered into traditional repurchase agreements with seven financial institutions, as detailed in the table above. We have pledged certain commercial real estate loan investments with a fair value of approximately $3.5 billion as collateral for these agreements. Certain borrowings under our Citibank repurchase agreement are collateralized by European commercial real estate loans. The borrowings are denominated in Euros and British pounds sterling and have a fair value of €189.4 million and £192.8 million, respectively, as of March 31, 2026. In March 2026, we added Euro capacity of €123.0 million and British pound sterling capacity of £255.4 million and upsized the U.S. dollar capacity to $700.0 million under our Wells Fargo repurchase agreement, resulting in a total facility size of $1.2 billion. Certain borrowings under our Wells Fargo agreement are collateralized by European commercial real estate loans, denominated in British pounds sterling, and have a fair value of £125.0 million as of March 31, 2026. We segregate the commercial real estate loans that we have pledged as collateral in our books and records. Our repurchase agreement counterparties have the right to resell or repledge the collateral posted but have the obligation to return the pledged collateral upon maturity of the repurchase agreement.
We were not required to post any margin under our master repurchase agreements as of March 31, 2026 and December 31, 2025. A margin deficiency may generally result from either a decline in the underlying loan’s market value or a shortfall in operating performance of the property. We may finance multiple commercial loan investments under a repurchase agreement; therefore, a margin excess in one asset could help mitigate a margin deficiency in another asset under the same repurchase agreement. We intend to maintain a level of liquidity that will enable us to meet margin calls. Master repurchase agreements are recourse obligations.
Counterparty Exposure
We have pledged certain commercial real estate loan investments as collateral for our secured financing facilities. If a secured financing counterparty were to default on its obligation to return the collateral, we would be exposed to potential losses to the extent the fair value of the collateral that we have pledged to the counterparty exceeded the amount loaned to us plus interest due to the counterparty. The following table summarizes our net exposure with those counterparties where the amount at risk exceeded 10.0% of equity as of March 31, 2026 and December 31, 2025.
$ in thousandsOutstanding PrincipalNet Counterparty Exposure
Weighted Average Life (Years)(1)
March 31, 2026
Morgan Stanley Bank$680,570 $176,662 2.68
Citibank582,004 145,501 3.32
Bank of Montreal411,997 107,449 3.94
Barclays422,894 107,993 3.07
Wells Fargo570,905 156,122 3.15
Total$2,668,370 $693,727 3.17
December 31, 2025
Morgan Stanley Bank$713,335 $186,066 2.92
Citibank590,301 148,674 3.56
Bank of Montreal411,627 107,463 4.18
Total$1,715,263 $442,203 3.45
(1)Assumes all extension options are exercised for borrowing facilities that may be extended at our option, subject to compliance with certain financial and administrative covenants.
The following table shows the aggregate amount of maturities of our outstanding borrowings over the next five years and thereafter as of March 31, 2026:
$ in thousands
Secured Lending Agreements(1)
Term Lending Agreements(1)
Revolving Credit Facility(1)
Total
Year
2026 (remaining)$— $— $16,000 $16,000 
2027— — — — 
2028680,570 — — 680,570 
20291,137,906 128,369 — 1,266,275 
2030431,636 95,028 — 526,664 
2031570,905 — — 570,905 
Thereafter— — — — 
Total$2,821,017 $223,397 $16,000 $3,060,414 
(1)Assumes all extension options are exercised for borrowing facilities that may be extended at our option, subject to compliance with certain financial and administrative covenants.
Revolving Credit Facility
Our revolving credit facility is secured by uncalled capital subscriptions under the terms of the Invesco Subscription Agreement, as described in Note 11 — “Redeemable Common Stock - Related Party”. Borrowings under the facility bear interest at one-month Term SOFR or the prime rate plus a spread. The revolving credit facility allows for the ability to obtain tranches of term financing in addition to general borrowings under an Uncommitted Tranche (as defined in the credit agreement). The Uncommitted Tranche is due on demand (15 business days after notice); any Funded Tranche (as defined in the credit agreement) is due no later than (a) three years from issuance or (b) 360 days after notice; and all amounts outstanding under the facility are due 30 days prior to the last date on which capital calls may be issued. The facility is prepayable without penalty.
Our revolving credit facility is subject to certain affirmative and negative non-financial and financial covenants, including a limitation on indebtedness. We were in compliance with these covenants as of March 31, 2026.