v3.26.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
In accordance with ASC 820, Fair Value Measurement (“ASC 820”), fair value is defined as the price that the Company would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value.
Each financial asset and liability is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below:
•Level 1 – Quoted prices in active markets for identical assets or liabilities.
•Level 2 – Other significant observable inputs (including quoted prices for similar assets or liabilities, interest rates, prepayment speeds, credit risk, etc.).
•Level 3 – Significant unobservable inputs (including the Company’s own assumptions in determining the fair value of assets and liabilities at the reporting date).
Valuation of Financial Assets and Liabilities Measured at Fair Value
The Company measures the fair value of its loans receivable and repurchase agreements using a discounted cash flow analysis unless observable market data is available. A discounted cash flow analysis requires management to make estimates regarding future interest rates and credit spreads. The most significant of these inputs relates to credit spreads and is unobservable. Thus, the Company has determined that the fair values of loans receivable and repurchase agreements valued using a discount cash flow analysis should be classified as Level 3 of the fair value hierarchy, while mortgage loans valued using securitized pricing should be classified as Level 2 of the fair value hierarchy. Mortgage loans classified as Level 3 are transferred to Level 2 if securitization pricing becomes available. The Company obtains third party pricing for determining the fair value of real estate securities, resulting in a Level 2 classification.
The following table presents the Company’s financial assets and liabilities carried at fair value on a recurring basis in the Consolidated Balance Sheets at March 31, 2026 by their level in the fair value hierarchy:
Fair Value Measurements
(in thousands)Level 1Level 2Level 3Total
Financial Assets:
   Loans receivable, at fair value$— $— $619,721 $619,721 
   Real estate securities, at fair value—102,051—102,051
Total$— $102,051 $619,721 $721,772 
Financial Liabilities:
   Repurchase agreements, at fair value$— $— $512,402 $512,402 
Total$— $— $512,402 $512,402 

The following table presents the Company’s financial assets and liabilities carried at fair value on a recurring basis in the Consolidated Balance Sheets at December 31, 2025 by their level in the fair value hierarchy:
Fair Value Measurements
(in thousands)Level 1Level 2Level 3Total
Financial Assets:
Loans receivable, at fair value$— $— $372,276 $372,276 
Real estate securities, at fair value—103,668—103,668
Total$— $103,668 $372,276 $475,944 
Financial Liabilities:
Repurchase agreements, at fair value$— $— $292,032 $292,032 
Total$— $— $292,032 $292,032 

Valuation of Loans Receivable, at Fair Value
The following table shows a reconciliation of the beginning and ending fair value measurements of the Company’s loans receivable at March 31, 2026:
(in thousands)March 31, 2026
Beginning balance at January 1, 2026$372,276 
Loan originations and fundings248,677
Principal paydowns(1,232)
Unrealized gain (loss) on loans receivable—
Balance at March 31, 2026$619,721 

The following table summarizes the significant unobservable inputs used in the fair value measurement of the Company’s loans receivable at March 31, 2026:
(in thousands)Fair ValueValuation TechniqueUnobservable InputsWeighted Average RateRange
Loans receivable, at fair value - Senior$581,707 Discounted Cash FlowDiscount Rate (interest spread)3.35%
2.00% - 6.45%
Loans receivable, at fair value - Senior32,105
Recent Transaction (1)
N/AN/A
N/A
Loans receivable, at fair value - Mezzanine5,909Discounted Cash FlowDiscount Rate (interest spread)9.15%
4.52% - 15.43%
Loans receivable, at fair value - Mezzanine— 
Recent Transaction (1)
N/AN/A
N/A
$619,721 
(1) Any loans receivable originated during the calendar month are valued utilizing the transaction price as a market approach under ASC 820.
The following table summarizes the significant unobservable inputs used in the fair value measurement of the Company’s loans receivable at December 31, 2025:
(in thousands)Fair ValueValuation TechniqueUnobservable InputsWeighted Average RateRange
Loans receivable, at fair value - Senior$266,241 Discounted Cash FlowDiscount Rate (interest spread)
3.39%
2.30% - 6.49%
Loans receivable, at fair value - Senior101,755
Recent Transaction (1)
N/A
N/A
N/A
Loans receivable, at fair value - Mezzanine1,640Discounted Cash FlowDiscount Rate (interest spread)
11.68%
7.02% - 15.43%
Loans receivable, at fair value - Mezzanine2,640
Recent Transaction (1)
N/A
N/A
N/A
$372,276 
(1) Any loans receivable originated during the calendar month are valued utilizing the transaction price as a market approach under ASC 820.
Valuation of Repurchase Agreements, at Fair Value
The following table shows a reconciliation of the beginning and ending fair value measurements of the Company’s repurchase agreements at March 31, 2026:
(in thousands)March 31, 2026
Beginning balance at January 1, 2026$292,032 
Borrowings under repurchase agreements415,571
Repayment under repurchase agreements(195,201)
Balance at March 31, 2026$512,402 
The Company did not have repurchase agreements measured at fair value during the three months ended March 31, 2025.
The following table summarizes the significant unobservable inputs used in the fair value measurement of the Company’s repurchase agreements at March 31, 2026:
(in thousands)Fair ValueValuation TechniqueUnobservable InputsWeighted Average RateRange
Repurchase agreements, at fair value$482,334 Discounted Cash FlowDiscount Rate (interest spread)1.58%
0.60% - 3.70%
Repurchase agreements, at fair value30,068
Recent Transaction (1)
N/AN/AN/A
$512,402 
(1) Any borrowings under repurchase agreements executed during the calendar month are valued utilizing the transaction price as a market approach under ASC 820.
The following table summarizes the significant unobservable inputs used in the fair value measurement of the Company’s repurchase agreements at December 31, 2025
(in thousands)Fair ValueValuation TechniqueUnobservable InputsWeighted Average RateRange
Repurchase agreements, at fair value$230,975 Discounted Cash FlowDiscount Rate (interest spread)
1.52%
0.65% - 3.60%
Repurchase agreements, at fair value
61,057
Recent Transaction (1)
N/AN/A
N/A
$292,032 
(1) Any borrowings under repurchase agreements executed during the calendar month are valued utilizing the transaction price as a market approach under ASC 820.