Loans Held for Investment, Net (Tables)
|
3 Months Ended |
Mar. 31, 2026 |
|---|
| Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] |
|
| Schedule of Accounts, Notes, Loans and Financing Receivable |
The following tables summarize our loans held-for-investment as of March 31, 2026 and December 31, 2025, respectively (dollars in thousands):
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Weighted Average |
|
Loan Type |
|
Outstanding
Face Amount |
|
|
Carrying Value (1) |
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|
Loan Count |
|
|
Fixed Rate (2) |
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|
Coupon (3) |
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|
Life (years) (4) |
|
March 31, 2026 |
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|
Mortgage loans, held-for-investment |
|
$ |
106,844 |
|
|
$ |
108,903 |
|
|
|
8 |
|
|
|
100.00 |
% |
|
|
5.26 |
% |
|
|
1.6 |
|
Mezzanine loans, held-for-investment |
|
|
235,292 |
|
|
|
226,547 |
|
|
|
21 |
|
|
|
41.14 |
% |
|
|
10.35 |
% |
|
|
2.3 |
|
Preferred equity, held-for-investment |
|
|
261,731 |
|
|
|
247,872 |
|
|
|
19 |
|
|
|
53.03 |
% |
|
|
10.81 |
% |
|
|
2.0 |
|
Promissory notes, held-for-investment |
|
|
48,990 |
|
|
|
48,477 |
|
|
|
4 |
|
|
|
100.00 |
% |
|
|
14.91 |
% |
|
|
1.2 |
|
Revolving credit facility, held-for-investment |
|
|
165,344 |
|
|
|
156,480 |
|
|
|
1 |
|
|
|
100.00 |
% |
|
|
13.50 |
% |
|
|
1.8 |
|
|
|
$ |
818,201 |
|
|
$ |
788,279 |
|
|
|
53 |
|
|
|
68.05 |
% |
|
|
10.75 |
% |
|
|
1.9 |
|
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|
Weighted Average |
|
Loan Type |
|
Outstanding
Face Amount |
|
|
Carrying Value (1) |
|
|
Loan Count |
|
|
Fixed Rate (2) |
|
|
Coupon (3) |
|
|
Life (years) (4) |
|
December 31, 2025 |
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Mortgage loans, held-for-investment |
|
$ |
118,550 |
|
|
$ |
121,239 |
|
|
|
9 |
|
|
|
100.00 |
% |
|
|
5.31 |
% |
|
|
1.9 |
|
Mezzanine loans, held-for-investment |
|
|
229,927 |
|
|
|
220,814 |
|
|
|
22 |
|
|
|
43.35 |
% |
|
|
10.18 |
% |
|
|
2.6 |
|
Preferred equity, held-for-investment |
|
|
261,175 |
|
|
|
244,959 |
|
|
|
20 |
|
|
|
54.84 |
% |
|
|
10.92 |
% |
|
|
2.8 |
|
Promissory notes, held-for-investment |
|
|
15,500 |
|
|
|
15,459 |
|
|
|
2 |
|
|
|
100.00 |
% |
|
|
13.65 |
% |
|
|
0.6 |
|
Revolving credit facility, held-for-investment |
|
|
148,600 |
|
|
|
138,328 |
|
|
|
1 |
|
|
|
100.00 |
% |
|
|
13.50 |
% |
|
|
2.0 |
|
|
|
$ |
773,752 |
|
|
$ |
740,799 |
|
|
|
54 |
|
|
|
67.92 |
% |
|
|
10.40 |
% |
|
|
2.4 |
|
(1)Carrying value includes the outstanding face amount plus unamortized purchase premiums/discounts and any allowance for loan losses. (2)The weighted-average of loans paying a fixed rate is weighted on current principal balance. (3)The weighted-average coupon is weighted on outstanding face amount. (4)The weighted-average life is weighted on outstanding face amount and assumes no prepayments. The maturity date for preferred equity investments represents the maturity date of the senior mortgage, as the preferred equity investments require repayment upon the sale or refinancing of the asset.
|
| Schedule of Loans Held for Investment, net and Preferred Equity Portfolio Activity |
For the three months ended March 31, 2026 and 2025, the loans held for investment, net and preferred equity portfolio activity was as follows (in thousands):
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For the Three Months Ended March 31, |
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2026 |
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|
2025 |
|
Balances, January 1, |
|
$ |
740,799 |
|
|
$ |
760,939 |
|
Originations |
|
|
61,169 |
|
|
|
22,546 |
|
Proceeds from principal repayments |
|
|
(42,814 |
) |
|
|
(20,665 |
) |
PIK distribution reinvested in Preferred Units |
|
|
25,592 |
|
|
|
3,242 |
|
Amortization of loan premium, net (1) |
|
|
550 |
|
|
|
957 |
|
(Provision for) reversal of credit losses (2) |
|
|
2,983 |
|
|
|
(3,625 |
) |
Balances, March 31, |
|
$ |
788,279 |
|
|
$ |
763,394 |
|
(1)Includes net amortization of loan purchase premiums. (2)The remaining provision of credit losses of $8.1 million is related to accrued interest on individual reserves.
|
| Schedule of Financing Receivable Credit Quality Indicators |
The following tables allocate the principal balance and net book value of the loan portfolio based on our internal risk ratings (dollars in thousands):
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March 31, 2026 |
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Number of |
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|
Carrying |
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|
% of Loan |
|
Risk Rating |
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|
Loans |
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|
Value |
|
|
Portfolio |
|
|
1 |
|
|
|
— |
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|
$ |
— |
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|
— |
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|
2 |
|
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|
— |
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|
— |
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|
— |
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|
3 |
|
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|
48 |
|
|
|
774,773 |
|
|
|
98.29 |
% |
|
4 |
|
|
|
2 |
|
|
|
3,628 |
|
|
|
0.46 |
% |
|
5 |
|
|
|
3 |
|
|
|
9,878 |
|
|
|
1.25 |
% |
|
|
|
|
53 |
|
|
$ |
788,279 |
|
|
|
100.00 |
% |
|
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|
December 31, 2025 |
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|
Number of |
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|
Carrying |
|
|
% of Loan |
|
Risk Rating |
|
|
Loans |
|
|
Value |
|
|
Portfolio |
|
|
1 |
|
|
|
— |
|
|
$ |
— |
|
|
|
— |
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
3 |
|
|
|
50 |
|
|
|
729,529 |
|
|
|
98.48 |
% |
|
4 |
|
|
|
1 |
|
|
|
1,397 |
|
|
|
0.19 |
% |
|
5 |
|
|
|
3 |
|
|
|
9,873 |
|
|
|
1.33 |
% |
|
|
|
|
54 |
|
|
$ |
740,799 |
|
|
|
100.00 |
% |
The following tables present the carrying value of the loan portfolio by the Company's internal risk rating and year of origination as of March 31, 2026 and December 31, 2025 (dollars in thousands):
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March 31, 2026 |
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|
Number of |
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|
Outstanding |
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|
Carrying Value by Year of Origination (1) |
|
Risk Rating |
|
|
Loans |
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|
Face Amount |
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|
2026 |
|
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|
2025 |
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|
2024 |
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|
2023 |
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|
2022 |
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|
Prior |
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Total |
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|
1 |
|
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|
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
3 |
|
|
|
48 |
|
|
|
787,914 |
|
|
|
32,848 |
|
|
|
34,393 |
|
|
|
296,360 |
|
|
|
87,360 |
|
|
|
64,591 |
|
|
|
259,221 |
|
|
|
774,773 |
|
|
4 |
|
|
|
2 |
|
|
|
5,403 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,225 |
|
|
|
1,403 |
|
|
|
3,628 |
|
|
5 |
|
|
|
3 |
|
|
|
24,884 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,413 |
|
|
|
3,303 |
|
|
|
4,162 |
|
|
|
9,878 |
|
|
|
|
|
53 |
|
|
$ |
818,201 |
|
|
$ |
32,848 |
|
|
$ |
34,393 |
|
|
$ |
296,360 |
|
|
$ |
89,773 |
|
|
$ |
70,119 |
|
|
$ |
264,786 |
|
|
$ |
788,279 |
|
|
|
|
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|
December 31, 2025 |
|
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|
|
Number of |
|
|
Outstanding |
|
|
Carrying Value by Year of Origination (1) |
|
Risk Rating |
|
|
Loans |
|
|
Face Amount |
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2021 |
|
|
Prior |
|
|
Total |
|
|
1 |
|
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
3 |
|
|
|
50 |
|
|
|
747,367 |
|
|
|
50,740 |
|
|
|
265,929 |
|
|
|
83,312 |
|
|
|
65,363 |
|
|
|
35,084 |
|
|
|
229,101 |
|
|
|
729,529 |
|
|
4 |
|
|
|
1 |
|
|
|
1,500 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,397 |
|
|
|
1,397 |
|
|
5 |
|
|
|
3 |
|
|
|
24,884 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,873 |
|
|
|
— |
|
|
|
9,873.00 |
|
|
|
|
|
54 |
|
|
$ |
773,751 |
|
|
$ |
50,740 |
|
|
$ |
265,929 |
|
|
$ |
83,312 |
|
|
$ |
65,363 |
|
|
$ |
44,957 |
|
|
$ |
230,498 |
|
|
$ |
740,799 |
|
(1)Represents the date a loan was originated or acquired.
|
| Schedule of Loans Held for Investment as a Percentage of Face Amount by Geographic Areas |
The following tables present the geographies and property types of collateral underlying the Company’s loans held-for-investment as a percentage of the loans’ face amounts.
|
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|
|
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|
Geography |
|
March 31, 2026 |
|
|
December 31, 2025 |
|
Massachusetts |
|
|
21.97 |
% |
|
|
17.57 |
% |
Texas |
|
|
14.85 |
% |
|
|
15.22 |
% |
Georgia |
|
|
8.52 |
% |
|
|
10.41 |
% |
Florida |
|
|
8.40 |
% |
|
|
8.19 |
% |
Maryland |
|
|
7.54 |
% |
|
|
7.75 |
% |
California |
|
|
5.86 |
% |
|
|
5.88 |
% |
Virginia |
|
|
5.64 |
% |
|
|
5.67 |
% |
Other (22 and 22 states each at <4%) |
|
|
27.22 |
% |
|
|
29.31 |
% |
|
|
|
100.00 |
% |
|
|
100.00 |
% |
|
|
|
|
|
|
|
|
|
Collateral Property Type |
|
March 31, 2026 |
|
|
December 31, 2025 |
|
Life Science |
|
|
33.86 |
% |
|
|
28.07 |
% |
Multifamily |
|
|
29.50 |
% |
|
|
30.94 |
% |
Single Family Rental |
|
|
25.48 |
% |
|
|
27.92 |
% |
Self-Storage |
|
|
4.92 |
% |
|
|
4.49 |
% |
Marina |
|
|
2.68 |
% |
|
|
4.91 |
% |
Industrial |
|
|
3.56 |
% |
|
|
3.67 |
% |
|
|
|
100.00 |
% |
|
|
100.00 |
% |
|