v3.26.1
Loans Held for Investment and the Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Schedule of Overall Statistics for Loan Held for Investment Portfolio
The following table details overall statistics for the Company’s loans held for investment portfolio (dollars in thousands):
June 30, 2026December 31, 2025
Balance sheet portfolio
Total loan exposure(1)
Balance sheet portfolio
Total loan exposure(1)
Number of loans52525050
Floating rate loans99.7 %99.7 %99.7 %99.7 %
Total loan commitment$4,508,434$4,508,434$4,290,603$4,290,603
Unpaid principal balance(2)
$4,335,033$4,335,033$4,118,050$4,118,050
Unfunded loan commitments(3)
$174,803$174,803$173,595$173,595
Amortized cost$4,321,538$4,321,538$4,103,022$4,103,022
Weighted average credit spread3.1 %3.1 %3.2 %3.2 %
Weighted average all-in yield(4)
7.1 %7.1 %7.1 %7.1 %
Weighted average term to extended maturity (in years)(5)
3.13.13.03.0
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(1)In certain instances, the Company creates structural leverage through the co-origination or non-recourse syndication of a senior loan interest to a third party. In either case, the senior mortgage loan (i.e., the non-consolidated senior interest) is not included on the Company’s balance sheet. When the Company creates structural leverage through the co-origination or non-recourse syndication of a senior loan interest to a third party, the Company retains on its balance sheet a mezzanine loan. Total loan exposure encompasses the entire loan portfolio the Company originated, acquired and financed. The Company had no non-consolidated senior interests as of June 30, 2026 and December 31, 2025. As of June 30, 2026, total loan exposure includes one fixed rate contiguous mezzanine loan and one fixed rate subordinate first mortgage loan. As of December 31, 2025, total loan exposure includes one fixed rate contiguous mezzanine loan.
(2)Unpaid principal balance includes PIK interest of $1.4 million and $1.0 million as of June 30, 2026 and December 31, 2025, respectively.
(3)Unfunded loan commitments may be funded over the term of each loan, subject in certain cases to an expiration date or a force-funding date, primarily to finance property improvements or lease-related expenditures by the Company’s borrowers and to finance operating deficits during renovation and lease-up.
(4)As of June 30, 2026, all of the Company's floating rate loans were indexed to Term SOFR. In addition to credit spread, all-in yield includes the amortization of deferred origination fees, purchase price premium and discount if any, and accrual of both extension and exit fees. All-in yield for the total portfolio assumes Term SOFR as of June 30, 2026 for weighted average calculations.
(5)Extended maturity assumes all extension options are exercised by the borrower; provided, however, that the Company’s loans may be repaid prior to such date. As of June 30, 2026, based on the unpaid principal balance of the Company’s total loan exposure, 55.2% of the Company’s loans were subject to yield maintenance or other prepayment restrictions and 44.8% were open to repayment by the borrower without penalty.
Schedule of Loans Held for Investment Portfolio by Loan Seniority
The following tables present an overview of the Company’s loans held for investment portfolio by loan seniority (dollars in thousands):
June 30, 2026
Loans held for investment, netOutstanding principalUnamortized premium (discount) and
loan origination fees, net 		Amortized cost
Senior loans(1)
$4,335,033 $(13,495)$4,321,538 
Total$4,335,033 $(13,495)$4,321,538 
Allowance for credit losses(77,750)
Loans held for investment, net$4,243,788 
December 31, 2025
Loans held for investment, netOutstanding principalUnamortized premium (discount) and
loan origination fees, net 		Amortized cost
Senior loans(1)
$4,118,050 $(15,028)$4,103,022 
Total$4,118,050 $(15,028)$4,103,022 
Allowance for credit losses(74,503)
Loans held for investment, net$4,028,519 
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(1)Senior loans may include contiguous mezzanine loans and pari passu participations in senior mortgage loans.
Schedule of Loans Held for Investment Portfolio Activity
The following table presents the Company’s loans held for investment portfolio activity (dollars in thousands):
Amortized costAllowance for credit lossesCarrying value
Balance as of December 31, 2025$4,103,022 $(74,503)$4,028,519 
Loans originated and acquired583,391 — 583,391 
Additional fundings29,123 — 29,123 
Accrued PIK interest360 — 360 
Amortization of origination fees and discounts3,697 — 3,697 
Collection of principal(398,055)— (398,055)
Allowance for credit losses— (3,247)(3,247)
Balance as of June 30, 2026$4,321,538 $(77,750)$4,243,788 
Schedule of Amortized Cost and Results of Internal Risk Rating Review Performed for Loans Held for Investment Portfolio
The following tables present the Company's loans held for investment portfolio on an amortized cost basis by origination year, grouped by risk rating (dollars in thousands):
June 30, 2026
Amortized cost by origination year
20262025202420232022PriorTotal
Senior loans by internal risk ratings:
1$— $— $— $— $— $— $— 
2— — 111,198 61,483 — — 172,681 
3585,380 1,751,089 427,422 — 454,261 768,425 3,986,577 
4— — — — 42,522 119,758 162,280 
5— — — — — — — 
Total senior loans$585,380 $1,751,089 $538,620 $61,483 $496,783 $888,183 $4,321,538 
Senior loans:
Current-period realized loss on loan write-offs related to REO conversions$— $— $— $— $— $— $— 
December 31, 2025
Amortized cost by origination year
2025 2024 2023 2022 2021 Prior Total
Senior loans by internal risk ratings:
1$— $— $— $— $— $— $— 
2— 110,641 58,591 — — — 169,232 
31,771,785 426,266 43,121 452,592 801,972 278,108 3,773,844 
4— — — 40,963 — 118,983 159,946 
5— — — — — — — 
Total senior loans$1,771,785 $536,907 $101,712 $493,555 $801,972 $397,091 $4,103,022 
Senior loans:
Current-period realized loss on loan write-offs related to REO conversions$— $— $— $— $— $— $— 
The table below summarizes the Company’s portfolio of loans held for investment on an amortized cost basis, by the results of its internal risk rating review process performed (dollars in thousands):
Risk ratingJune 30, 2026December 31, 2025
1$— $— 
2172,681 169,232 
33,986,577 3,773,844 
4162,280 159,946 
5— — 
Total$4,321,538 $4,103,022 
Allowance for credit losses(77,750)(74,503)
Carrying value$4,243,788 $4,028,519 
Weighted average risk rating(1)
3.0 3.0 
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(1)Weighted average risk rating calculated based on the amortized cost balance at period end.
Schedule of Activity in Allowance for Credit Losses for Loans Held for Investment
The following tables present activity in the allowance for credit losses for loans by finance receivable class (dollars in thousands):
For the Three Months Ended June 30, 2026
Senior loans
Allowance for credit losses for loans held for investment:
Beginning balance at April 1, 2026
$74,033 
Allowance for credit losses, net3,717 
Subtotal77,750 
Allowance for credit losses on unfunded loan commitments:
Beginning balance at April 1, 2026
3,103 
Reversal of credit losses, net(173)
Subtotal2,930 
Total allowance for credit losses(1)
$80,680 
For the Three Months Ended June 30, 2025
Senior loans
Allowance for credit losses for loans held for investment:
Beginning balance at April 1, 2025
$64,721 
Allowance for credit losses, net2,236 
Subtotal66,957 
Allowance for credit losses on unfunded loan commitments:
Beginning balance at April 1, 2025
2,494 
Reversal of credit losses, net(675)
Subtotal1,819 
Total allowance for credit losses(1)
$68,776 
For the Six Months Ended
June 30, 2026
Senior loans
Allowance for credit losses for loans held for investment:
Beginning balance at January 1, 2026$74,503 
Allowance for credit losses, net3,247 
Subtotal77,750 
Allowance for credit losses on unfunded loan commitments:
Beginning balance at January 1, 20262,920 
Allowance for credit losses, net10 
Subtotal2,930 
Total allowance for credit losses(1)
$80,680 
For the Six Months Ended
June 30, 2025
Senior loans
Allowance for credit losses for loans held for investment:
Beginning balance at January 1, 2025$61,558 
Allowance for credit losses, net5,399 
Subtotal66,957 
Allowance for credit losses on unfunded loan commitments:
Beginning balance at January 1, 20252,415 
Reversal of credit losses, net(596)
Subtotal1,819 
Total allowance for credit losses(1)
$68,776 
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(1)Excludes $0.7 million and $0.6 million of allowance for credit losses on exit fees receivable related to the Company's loans held for investment portfolio as of June 30, 2026 and June 30, 2025, respectively. Such amounts are recorded within Accrued interest and fees receivable on the Company's consolidated balance sheet and Credit loss expense, net on the Company's consolidated statements of income and comprehensive income.
The following table presents the allowance for credit losses for loans held for investment (dollars in thousands):
June 30, 2026
General reserveSpecific reserveTotal reserve
Allowance for credit losses:
Loans held for investment$77,750 $— $77,750 
Unfunded loan commitments2,930 — 2,930 
Total allowance for credit losses(1)
$80,680 $— $80,680 
Total unpaid principal balance$4,335,033 $— $4,335,033 
December 31, 2025
General reserveSpecific reserveTotal reserve
Allowance for credit losses:
Loans held for investment$74,503 $— $74,503 
Unfunded loan commitments2,920 — 2,920 
Total allowance for credit losses(1)
$77,423 $— $77,423 
Total unpaid principal balance$4,118,050 $— $4,118,050 
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(1)Excludes $0.7 million and $0.6 million of allowance for credit losses on exit fees receivable related to the Company's loans held for investment portfolio as of June 30, 2026 and December 31, 2025, respectively. Such amounts are recorded within Accrued interest and fees receivable on the Company's consolidated balance sheet and Credit loss expense, net on the Company's consolidated statements of income and comprehensive income.
Schedule of Aging Analysis for Loans Held for Investment Portfolio by Class of Loans
The following table presents an aging analysis for the Company’s portfolio of loans held for investment, by class of loans on amortized cost basis (dollars in thousands):
Days Outstanding as of June 30, 2026
CurrentDays: 30-59Days: 60-89 Days: 90 or moreTotal loans past dueTotal loans
Loans receivable:
Senior loans$4,321,538 $— $— $— $— $4,321,538 
Total$4,321,538 $— $— $— $— $4,321,538 
 
Days Outstanding as of December 31, 2025
Current Days: 30-59Days: 60-89Days: 90 or moreTotal loans past dueTotal loans
Loans receivable:
Senior loans$4,103,022 $— $— $— $— $4,103,022 
Total$4,103,022 $— $— $— $— $4,103,022 
Schedule of Paid-in-Kind Interest
The following table presents the accrued PIK interest activity for the Company’s loans held for investment portfolio (dollars in thousands):
June 30, 2026
Balance as of January 1, 2026
$1,042 
Accrued PIK interest181 
Balance as of March 31, 2026
$1,223 
Accrued PIK interest179 
Balance as of June 30, 2026
$1,402