v3.26.1
MORTGAGE LOAN RECEIVABLES
 6 Months Ended
Jun. 30, 2026
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]  
MORTGAGE LOAN RECEIVABLES
3. MORTGAGE LOAN RECEIVABLES

June 30, 2026 ($ in thousands)
Outstanding
Face Amount		Carrying
Value		Weighted
Average
Yield (1)(2)		Remaining
Maturity
(years)(2)(3)
Mortgage loan receivables held for investment, net, at amortized cost:
First mortgage loans$2,807,310 $2,787,439 7.26 %1.9
Mezzanine loans2,704 2,699 11.64 %1.4
Total mortgage loans receivable2,810,014 2,790,138 7.26 %1.9
Allowance for credit losses N/A (47,095)
Total mortgage loan receivables held for investment, net, at amortized cost2,810,014 2,743,043 
Mortgage loan receivables held for sale:
First mortgage loans31,350 27,205 (4)4.57 %6.6
Total$2,841,364 $2,770,248 (5)7.24 %1.9
(1)Includes the impact of interest rate floors. Term SOFR rates in effect as of June 30, 2026 are used to calculate weighted average yield for floating rate loans.
(2)Excludes two non-accrual loans with an amortized cost basis of $64.1 million. Refer to the “Non-Accrual Status” table below for further details.
(3)The remaining maturity is calculated based on the initial maturity. The weighted average extended maturity for all loans is 3.5 years.
(4)As a result of changes in prevailing rates, the Company recorded a lower of cost or market adjustment as of June 30, 2026. The adjustment was calculated using a 5.02% discount rate.
(5)Net of $19.9 million of deferred origination fees and other items as of June 30, 2026.

As of June 30, 2026, $2.5 billion, or 88.9%, of the outstanding face amount of the mortgage loan receivables held for investment, net, at amortized cost, were at variable interest rates linked to Term SOFR. Of this $2.5 billion, 100% of these variable interest rate mortgage loan receivables were subject to interest rate floors. As of June 30, 2026, $31.4 million, or 100%, of the outstanding face amount of the mortgage loan receivables held for sale were at fixed interest rates.

During the three months ended June 30, 2026, the Company originated two loans with an amortized cost basis of $247.5 million as of June 30, 2026, to an unconsolidated entity in which the Company owns a 6.1% non-controlling equity interest. As of June 30, 2026, the loans are included in “Mortgage loans receivable” on the Company's consolidated balance sheet. During the three months ended June 30, 2026, the Company recorded $3.7 million of interest income on the loans.

December 31, 2025 ($ in thousands)
Outstanding
Face Amount		Carrying
Value		Weighted
Average
Yield (1)(2)		Remaining
Maturity
(years)(2)(3)
Mortgage loan receivables held for investment, net, at amortized cost:
First mortgage loans$2,227,024 $2,210,062 7.74 %1.6
Mezzanine loans7,322 7,313 11.24 %0.7
Total mortgage loans receivable2,234,346 2,217,375 7.76 %1.6
Allowance for credit losses— (47,137)
Total mortgage loan receivables held for investment, net, at amortized cost2,234,346 2,170,238 
Mortgage loan receivables held for sale:
First mortgage loans31,350 27,986 (4)4.57 %6.9
Total$2,265,696 $2,198,224 (5)7.71 %2.0
(1)Includes the impact of interest rate floors. Term SOFR rates in effect as of December 31, 2025 are used to calculate weighted average yield for floating rate loans.
(2)Excludes four non-accrual loans with an amortized cost basis of $129.7 million. Refer to the “Non-Accrual Status” table below for further details.
(3)The remaining maturity is calculated based on the initial maturity. The weighted average extended maturity for all loans is 2.9 years.
(4)As a result of changes in prevailing rates, the Company recorded a lower of cost or market adjustment as of December 31, 2025. The adjustment was calculated using a 4.94% discount rate.
(5)Net of $12.0 million of deferred origination fees and other items as of December 31, 2025.
As of December 31, 2025, $1.9 billion, or 86.5%, of the outstanding face amount of the mortgage loan receivables held for investment, net, at amortized cost, were at variable interest rates linked to Term SOFR. Of this $1.9 billion, 100.0% of these variable interest rate mortgage loan receivables were subject to interest rate floors. As of December 31, 2025, $31.4 million, or 100.0%, of the outstanding face amount of the mortgage loan receivables held for sale were at fixed interest rates.

For the six months ended June 30, 2026 and 2025, loan portfolio activity was as follows ($ in thousands):
Mortgage loan receivables held for investment, net, at amortized cost:
 Mortgage loans receivableAllowance for credit lossesMortgage loan 
receivables held
for sale
Balance, December 31, 2025$2,217,375 $(47,137)$27,986 
Origination of mortgage loan receivables (1)1,034,275 — 25,203 
Repayment of mortgage loan receivables(381,636)— — 
Proceeds from sales of mortgage loan receivables (2)— — (26,231)
Non-cash disposition of loans via foreclosure(87,971)— — 
Net result from mortgage loan receivables held for sale (3)— — 247 
Accretion/amortization of discount, premium and other fees8,095 — — 
Release (addition) of provision for current expected credit loss, net (4)— 42 — 
Balance, June 30, 2026$2,790,138 $(47,095)$27,205 
(1)Includes funding of commitments on existing mortgage loans.
(2)Excludes $8.2 million of proceeds received from the sale of a conduit mortgage loan collateralized by a net leased property in the Company’s real estate segment to a third-party securitization trust. The mortgage loan receivable and the related obligation do not appear in the Company’s consolidated balance sheets as they are eliminated upon consolidation. Upon the sale of the mortgage loan receivable to a third-party securitization trust (for cash), the related mortgage note is recognized as a financing transaction.
(3)Includes unrealized lower of cost or market adjustment of $0.8 million and realized gain on loans held for sale of $1.0 million.
(4)Refer to the “Allowance for Credit Losses” table below for further detail.
Mortgage loan receivables held for investment, net, at amortized cost:
 Mortgage loans receivableAllowance for credit lossesMortgage loan 
receivables held
for sale
Balance, December 31, 2024$1,591,322 $(52,323)$26,898 
Origination of mortgage loan receivables (1)412,598 — 63,360 
Repayment of mortgage loan receivables (2)(373,160)— (140)
Proceeds from sales of mortgage loan receivables— — (66,847)
Non-cash disposition of loans via foreclosure(42,400)— — 
Net result from mortgage loan receivables held for sale (3)— — 5,076 
Accretion/amortization of discount, premium and other fees5,350 — — 
Release (addition) of provision for current expected credit loss, net (4)— 157 — 
Balance, June 30, 2025$1,593,710 $(52,166)$28,347 
(1)Includes funding of commitments on existing mortgage loans.
(2)Includes $0.9 million of repayments in transit.
(3)Includes reversal of unrealized lower of cost or market adjustment of $1.5 million and realized gain on loans held for sale of $3.6 million.
(4)Refer to the “Allowance for Credit Losses” table below for further detail.
Allowance for Credit Losses and Non-Accrual Status ($ in thousands)
Three Months Ended June 30,Six Months Ended June 30,
Allowance for Credit Losses2026202520262025
Allowance for credit losses at beginning of period$47,109 $52,208 $47,137 $52,323 
Provision for (release of) current expected credit loss, net(14)(42)(42)(157)
Allowance for credit losses at end of period$47,095 $52,166 $47,095 $52,166 

Current Expected Credit Loss

As of June 30, 2026, the Company had a $47.8 million allowance for current expected credit losses, of which $47.1 million pertained to mortgage loan receivables and $0.7 million related to unfunded commitments included in other liabilities in the consolidated balance sheet.

As of December 31, 2025, the Company had a $47.7 million allowance for current expected credit losses, of which $47.1 million pertained to mortgage loan receivables and $0.5 million related to unfunded commitments included in other liabilities in the consolidated balance sheet.
The provision for loan loss reserves for the three and six months ended June 30, 2026 was $0.1 million, driven by an increase in allowance associated with unfunded commitments on newly originated loans. The allowance represents continued uncertainty related to macroeconomic market conditions affecting commercial real estate.

The release of loan loss reserves for the three and six months ended June 30, 2025 was $42 thousand and $0.1 million, respectively. The release recorded during the three and six months ended June 30, 2025 was primarily due to a decrease in size of the Company’s balance sheet first mortgage loan portfolio, partially offset by continued uncertainty in macroeconomic market conditions affecting commercial real estate.
Non-Accrual Status (1)
June 30,
2026(2)		December 31, 2025(3)
Amortized cost basis of loans on non-accrual status$64,074 $129,679 
(1)As of June 30, 2026, $50.7 million of loans on non-accrual status were greater than 90 days past due. As of December 31, 2025, $123.9 million of loans on non-accrual status were greater than 90 days past due. For the six months ended June 30, 2026, the Company did not recognize any interest income on these loans while on non-accrual status. For the six months ended June 30, 2025, the Company recognized $0.9 million of interest income on non-accrual loans. As of December 31, 2025, there was one loan accruing income with an amortized cost basis of $4.6 million that was greater than 90 days past due.
(2)Comprised of one hotel loan, recently converted from a multi-family, with an amortized cost basis of $50.7 million and one office loan with an amortized cost basis of $13.4 million.
(3)Comprised of one multi-family loan with an amortized cost basis of $61.3 million, one hotel loan with an amortized cost basis of $11.9 million and one multi-family loan with an amortized cost basis of $50.7 million, and one office loan with an amortized cost basis of $5.8 million for which the Company determined no asset-specific reserves were necessary.
Management’s method for monitoring credit is the performance of a loan. The primary credit quality indicator management utilizes to assess its current expected credit loss reserve is by viewing the Company’s mortgage loan portfolio by collateral type. The primary credit quality indicator is reviewed by management on a quarterly basis. The following tables summarize the amortized cost of the mortgage loan portfolio by collateral type as of June 30, 2026 and December 31, 2025, respectively ($ in thousands):

Amortized Cost Basis by Origination Year as of June 30, 2026
Collateral Type20262025202420232022 and EarlierTotal (2)
Multifamily$635,245 $948,520 $48,877 $— $60,876 $1,693,518 
Office 245,767 53,677 — — 294,147 593,591 
Industrial73,327 139,706 11,441 — — 224,474 
Mixed Use23,666 61,136 — — 33,106 117,908 
Retail47,552 14,876 10,416 — 24,160 97,004 
Other— 49,000 — — 11,944 60,944 
Hospitality— — — — 2,699 2,699 
Subtotal mortgage loans receivable1,025,557 1,266,915 70,734 — 426,932 2,790,138 
Individually Impaired loans— — — — — — 
Total mortgage loans receivable (1)$1,025,557 $1,266,915 $70,734 $— $426,932 $2,790,138 


Amortized Cost Basis by Origination Year as of December 31, 2025
Collateral Type20252024202320222021 and EarlierTotal (5)(6)
Multifamily$959,214 $127,254 $14,648 $22,109 $111,575 $1,234,800 
Office 50,895 — — 55,950 484,565 591,410 
Industrial137,915 11,418 — — — 149,333 
Mixed Use79,244 — — — 33,111 112,355 
Other48,850 — — 11,945 — 60,795 
Retail14,848 10,457 — — 24,121 49,426 
Hospitality— — — — 19,256 19,256 
Subtotal mortgage loans receivable1,290,966 149,129 14,648 90,004 672,628 2,217,375 
Individually Impaired loans— — — — — — 
Total mortgage loans receivable (3)(4)$1,290,966 $149,129 $14,648 $90,004 $672,628 $2,217,375 
(1)Not included above is $12.7 million of accrued interest receivable on all loans at June 30, 2026.
(2)For purposes of calculating our CECL allowance, one non-accrual loan collateralized by a hotel with an amortized cost basis of $50.7 million utilized a valuation of the underlying collateral to calculate the allowance at June 30, 2026 and concluded no allowance was necessary.
(3)Not included above is $10.6 million of accrued interest receivable on all loans at December 31, 2025.
(4)For the year ended December 31, 2025, there was a $5.0 million charge-off of an allowance in connection with one office property in Portland, Oregon. The fair value was determined using the sales comparison and direct capitalization approaches. The Company utilized a capitalization rate of 11.0%. The key inputs used to determine fair value were determined to be Level 3 inputs.
(5)For purposes of calculating our CECL allowance, one loan collateralized by an office property, one loan collateralized by a hospitality property and two loans collateralized by multifamily properties utilized valuations of the underlying collateral to calculate the allowance at December 31, 2025.
(6)The Company had one $228.2 million mortgage loan receivable collateralized by an office property in the southeast that represented 10% of the total mortgage loan receivable held for investment at December 31, 2025.