v3.26.1
Loans Held for Investment, net
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Loans Held for Investment, net Loans Held for Investment, net
We originate first mortgage loans secured by middle market transitional commercial real estate, or CRE, which are generally to be held as long term investments. We fund our loan portfolio using cash on hand and advancements under our Secured Financing Facilities, as defined in Note 5. See Note 5 for further information regarding our secured financing agreements.
The table below provides overall statistics for our loan portfolio as of June 30, 2026 and December 31, 2025:
As of June 30, 2026As of December 31, 2025
Number of loans2724
Total loan commitments$765,343$724,458
Unfunded loan commitments (1)
$43,018$36,873
Principal balance $722,325$687,585
Carrying value$705,230$676,908
Weighted average coupon rate7.29%7.52%
Weighted average all in yield (2)
7.69%7.92%
Weighted average floor2.96%2.81%
Weighted average maximum maturity (years) (3)
2.92.6
Weighted average risk rating2.92.8
(1)Unfunded loan commitments are primarily used to finance property improvements and leasing capital and are generally funded over the term of the loan.
(2)All in yield represents the yield on a loan, including amortization of deferred fees over the initial term of the loan and excluding any purchase discount accretion.
(3)    Maximum maturity assumes all borrower loan extension options have been exercised, which options are subject to the borrower meeting certain conditions.
The tables below represent our loan activities during the three months ended June 30, 2026 and 2025:
Principal BalanceDeferred Fees and Other ItemsAmortized Cost
Balance at March 31, 2026$732,003 $(1,907)$730,096 
Additional funding3,244 — 3,244 
Deferred interest capitalized to loans held for investment213 — 213 
Originations71,940 (877)71,063 
Repayments(85,075)(599)(85,674)
Net amortization of deferred fees— 504 504 
Purchase discount accretion— 188 188 
Balance at June 30, 2026$722,325 $(2,691)$719,634 
Principal BalanceDeferred Fees and Other ItemsAmortized Cost
Balance at March 31, 2025$661,389 $(1,152)$660,237 
Additional funding1,285 — 1,285 
Originations40,800 (544)40,256 
Repayments(70,648)(396)(71,044)
Net amortization of deferred fees— 584 584 
Balance at June 30, 2025$632,826 $(1,508)$631,318 
The tables below represent our loan activities during the six months ended June 30, 2026 and 2025.
Principal BalanceDeferred Fees and Other ItemsAmortized Cost
Balance at December 31, 2025$687,585 $(1,878)$685,707 
Additional funding5,425 — 5,425 
Deferred interest capitalized to loans held for investment350 — 350 
Originations130,040 (1,597)128,443 
Repayments(101,075)(599)(101,674)
Net amortization of deferred fees— 1,050 1,050 
Purchase discount accretion— 333 333 
Balance at June 30, 2026$722,325 $(2,691)$719,634 
Principal BalanceDeferred Fees and Other ItemsAmortized Cost
Balance at December 31, 2024$610,811 $(895)$609,916 
Additional funding5,358 — 5,358 
Originations87,305 (1,314)85,991 
Repayments(70,648)(396)(71,044)
Net amortization of deferred fees— 1,097 1,097 
Balance at June 30, 2025$632,826 $(1,508)$631,318 
The tables below detail the property type and geographic location of the properties securing the loans in our portfolio as of June 30, 2026 and December 31, 2025:
June 30, 2026December 31, 2025
Property Type
Number of Loans
Amortized Cost
Percentage of Value
Number of Loans
Amortized Cost
Percentage of Value
Office5$139,755 19%6$165,745 24%
Student Housing4119,596 17%4115,575 17%
Hotel4119,125 17%4121,393 18%
Industrial4113,500 16%4112,792 16%
Multifamily367,115 9%387,920 13%
Self Storage364,264 9%247,990 7%
Other249,418 7%134,292 5%
Medical Office246,861 6%—— —%
27$719,634 100%24$685,707 100%
June 30, 2026December 31, 2025
Geographic Location
Number of Loans
Amortized Cost
Percentage of ValueNumber of LoansAmortized CostPercentage of Value
South10$288,841 40%8$222,512 32%
East8238,990 33%7223,240 33%
West8168,181 24%6134,741 20%
Midwest123,622 3%3105,214 15%
27$719,634 100%24$685,707 100%
Credit Quality Information and Allowance for Credit Losses
We evaluate the credit quality of each of our loans at least quarterly by assessing a variety of risk factors in relation to each loan and assigning a risk rating to each loan based on those factors. The higher the number, the greater the risk level. See our 2025 Annual Report for more information regarding our loan risk ratings.
As of June 30, 2026 and December 31, 2025, the amortized cost of our loan portfolio within each internal risk rating by year of origination was as follows:
June 30, 2026
Risk RatingNumber of LoansPercentage of Portfolio20262025202420232022PriorTotal
1210%$— $— $41,779 $28,994 $— $— $70,773 
229%— 63,506 — — — — 63,506 
31859%129,090 89,243 136,396 25,219 20,446 23,622 424,016 
4522%— — — — 45,206 116,133 161,339 
5——%— — — — — — — 
27100%$129,090 $152,749 $178,175 $54,213 $65,652 $139,755 $719,634 
December 31, 2025
Risk RatingNumber of LoansPercentage of Portfolio20252024202320222021PriorTotal
1316%$— $57,599 $— $— $54,982 $— $112,581 
228%27,992 — 28,988 — — — 56,980 
31559%120,576 139,141 25,173 65,510 23,593 26,640 400,633 
4417%— — — — 115,513 — 115,513 
5——%— — — — — — — 
24100%$148,568 $196,740 $54,161 $65,510 $194,088 $26,640 $685,707 
Allowance for credit losses
We measure our allowance for credit losses using the current expected credit loss, or CECL, model, which is based upon historical experience, current conditions and reasonable and supportable forecasts incorporating forward-looking information that affects the collectability of the reported amount.
The allowance for credit losses is a valuation account that is deducted from the related loans’ amortized cost basis in our condensed consolidated balance sheets. Our loans typically include commitments to fund incremental proceeds to borrowers over the life of the loan; these future funding commitments are also subject to the CECL model. The allowance for credit losses related to unfunded loan commitments is included in accounts payable, accrued liabilities and other liabilities in our condensed consolidated balance sheets.
Given the lack of historical loss data related to our loan portfolio, we estimate our expected losses using an analytical model that considers the likelihood of default and loss given default for each individual loan. This analytical model incorporates data from a third party database with historical loan loss information for commercial mortgage-backed securities, or CMBS, and CRE loans since 1998. We estimate the allowance for credit losses for our portfolio, including unfunded loan commitments, at the individual loan level. Significant inputs to the model include certain loan specific data, such as loan to value, or LTV, property type, geographic location, occupancy, vintage year, remaining loan term, net operating income, expected timing and amounts of future loan fundings and macroeconomic forecast assumptions, including the performance of CRE assets, unemployment rates, interest rates and other factors. We utilize the model to estimate credit losses over a reasonable and supportable economic forecast period of 12 months, followed by a straight-line reversion period of 12 months to average historical losses. Average historical losses are established using a population of third party historical loss data that approximates our portfolio as of the measurement date. We evaluate the estimated allowance for each of our loans individually and we consider our internal loan risk rating as the primary credit quality indicator underlying our assessment.
We have elected to exclude accrued interest receivable from amortized cost and not to measure an allowance for credit losses on accrued interest receivable. Accrued interest receivables are generally written off when payments are 120 days past due. Such amounts are reversed against interest income and no further interest will be recorded until it is collected.
If a loan is determined to be collateral dependent (because the repayment of the loan is expected to be provided substantially through the operation or sale of the underlying collateral property) and the borrower is experiencing financial difficulties, but foreclosure is not probable, we may elect to apply a practical expedient to determine the loan's allowance for credit losses by comparing the collateral's fair value to the amortized cost basis of the loan. For collateral-dependent loans for which foreclosure is probable, the related allowance for credit losses is determined using the fair value of the collateral compared to the loan's amortized cost.
See Note 2 to our Consolidated Financial Statements included in Part IV, Item 15 of our 2025 Annual Report for further information regarding our measurement of our allowance for credit losses.
The tables below represent the changes to the allowance for credit losses during the three months ended June 30, 2026 and 2025.
Loans Held for Investment, netUnfunded Loan CommitmentsTotal
Balance at March 31, 2026$9,495 $219 $9,714 
Provision for credit losses4,909 14 4,923 
Balance at June 30, 2026$14,404 $233 $14,637 
Loans Held for Investment, netUnfunded Loan CommitmentsTotal
Balance at March 31, 2025$7,648 $1,107 $8,755 
Provision for (reversal of) credit losses1,727 (815)912 
Balance at June 30, 2025$9,375 $292 $9,667 
The tables below represent the changes to the allowance for credit losses during the six months ended June 30, 2026 and 2025.
Loans Held for Investment, netUnfunded Loan CommitmentsTotal
Balance at December 31, 2025$8,799 $312 $9,111 
Provision for (reversal of) credit losses5,605 (79)5,526 
Balance at June 30, 2026$14,404 $233 $14,637 
Loans Held for Investment, netUnfunded Loan CommitmentsTotal
Balance at December 31, 2024$8,074 $834 $8,908 
Provision for (reversal of) credit losses1,301 (542)759 
Balance at June 30, 2025$9,375 $292 $9,667 
The increase in the allowance for credit losses during the three months ended June 30, 2026 is primarily due to increased allowances for certain of our “4” rated office loans with near-term maturities, and primarily reflects lower estimated collateral values for these loans within the office sector.
We may enter into loan modifications that include, among other changes, extensions of maturity dates, repurposing or required replenishment of reserves, increases or decreases in loan commitments and required pay downs of principal amounts outstanding. Loan modifications are evaluated to determine whether a modification results in a new loan or a continuation of an existing loan under ASC 310.
In July 2026, we amended the agreement governing our loan secured by an office property in Plano, TX. As part of this amendment, the maturity date was extended by two years to July 1, 2028. As of June 30, 2026, this loan had an amortized cost of $26,637 and a risk rating of 4.
We did not have any outstanding past due loans or nonaccrual loans as of June 30, 2026 or December 31, 2025. As of June 30, 2026 and July 24, 2026, all of our borrowers had paid their debt service obligations owed and due to us. See our 2025 Annual Report for more information regarding our nonaccrual policy.
As of June 30, 2026, we had unfunded loan commitments of $43,018 related to our loans held for investment that are not reflected in our condensed consolidated balance sheets. These unfunded loan commitments had a weighted average initial maturity of 1.3 years as of June 30, 2026.