Variable Interest Entity |
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| Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Variable Interest Entity | Variable Interest Entity In November 2025, the Company and an affiliate of the Company entered into a joint venture agreement, forming FBRED Lux HYJV, LLC (the “JV”). The JV is the sole owner of FBRED REIT High Yield Securities, LLC (the “HY SPE”). The Company has a 40% interest in the JV and is the Manager, as defined by the joint venture agreement, while the affiliate fund has a 60% interest. The affiliated fund contributed a net $14.6 million for their 60% interest in the JV. There was no gain or loss on the transaction. Pursuant to the joint venture agreement, the Company, as Manager, holds the power and control over the management of the JV, including but not limited to, entering transactions, modifying joint venture agreement, materially changing the business of the JV or replacing the Manager for the JV. The Company has determined the JV is a VIE of which the Company is the primary beneficiary, as such, the activity of the JV is consolidated in the Company’s Consolidated Financial Statements. Our involvement with this VIE primarily affects our financial performance and cash flows through amounts recorded in interest income, interest expense and through activity associated with our investments in real estate securities and repurchase agreements. Through this entity, the Company invests in real estate securities and those are financed through repurchase agreements. The Company believes it is the primary beneficiary of the VIE because (i) the Company has the power to direct the activities that most significantly affect the VIE’s performance and (ii) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE. The VIE is non-recourse to the Company. The assets and liabilities related to the consolidated joint venture are as follows:
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