As of March 31, 2026 and December 31, 2025, investment in developmental real estate, net consisted of the following:


	As of March 31, 2026						As of December 31, 2025
(in thousands)	Cost		Accumulated Depreciation		Net investment		Cost		Accumulated Depreciation		Net investment

Land and land improvements	$	8,552	$	(23)	$	8,529	$	8,392	$	(15)	$	8,377
Building	20,513		(13)		20,500		1,346		(4)		1,342


Construction in progress	16,984		—		16,984		—		—		—
Total	$	46,049	$	(36)	$	46,013	$	9,738	$	(19)	$	9,719

During the three months ended March 31, 2026, the Company restructured the loan associated with its legacy Naples, Florida mortgage receivable. Prior to the restructuring, the Company had designated the loan as a mortgage loan held for investment and was carried at $39.8 million. Through the restructuring, the Company acquired 100% of the membership interests of the entity holding the condominium assets associated with this loan. The assets acquired include three completed condominium units and the construction in progress of four additional condominium units. The transaction

was accounted for in accordance with ASC 310 (Receivables). Based on a discounted cash flow model, the fair value of the assets acquired was estimated to be $35.9 million, resulting in a credit loss of $3.9 million upon restructuring of the loan. The discounted cash flow model utilized a 10.2% discount rate which is an unobservable input.

Building and land improvements that are placed in service are being depreciated using the straight-line method over their estimated useful lives of 40 years and 15 years, respectively. For the three months ended March 31, 2026 and 2025, depreciation and amortization related to the asset was de minimis and is presented in other expenses on the Company’s unaudited Condensed Consolidated Statements of Operations.