v3.26.1
Loans and Preferred Equity Held for Investment, net
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Loans and Preferred Equity Held for Investment, net Loans and Preferred Equity Held for Investment, net
The following table provides a summary of the Company’s loans and preferred equity held for investment, net (dollars in thousands):
June 30, 2026December 31, 2025
Unpaid Principal Balance
Carrying
Value
Weighted Average Coupon(1)
Weighted Average of Contractual Maturity(2)
Weighted Average Maturity in Years(3)
Unpaid Principal Balance
Carrying
Value
Weighted Average Coupon(1)
Weighted Average of Contractual Maturity(2)
Weighted Average Maturity in Years(3)
Variable rate
Senior loans$1,211,175 $1,209,789 7.1 %1.02.0$1,422,235 $1,420,199 6.9 %1.22.6
Securitized loans(4)
1,630,000 1,625,278 6.7 %1.32.71,172,999 1,173,495 7.0 %0.71.3
2,841,175 2,835,067 2,595,234 2,593,694 
Fixed rate
Senior loans27,337 27,337 20.0 %0.0
(5)
0.224,139 24,139 20.0 %0.10.4
Mezzanine loans15,105 15,105 — %0.60.649,069 49,069 8.4 %0.11.1
Preferred equity interests 16,154 16,154 14.4 %0.50.511,467 11,413 14.3 %0.41.0
58,596 58,596 84,675 84,621 
Loans and preferred equity held for investment2,899,771 2,893,663 2,679,909 2,678,315 
CECL reserve— (98,658)— (87,401)
Loans and preferred equity held for investment, net$2,899,771 $2,795,005 7.0 %
1.1
2.3$2,679,909 $2,590,914 7.1 %0.92.0
_________________________________________
(1)Calculated based on contractual interest rate, except for nonaccrual loans. As of June 30, 2026 and December 31, 2025, all variable rate loans utilize Term Secured Overnight Financing Rate (“Term SOFR”).
(2)Calculated using current maturity date.
(3)Calculated using extended maturity date.
(4)Represents loans transferred into securitization trusts that are consolidated by the Company.
(5)The contractual maturity of the fixed rate senior loans was July 9, 2026 at June 30, 2026. The loan was extended subsequent to June 30, 2026.

The Company had $12.6 million and $10.8 million of interest receivable related to its loans and preferred equity held for investment, net as of June 30, 2026, and December 31, 2025, respectively. This is included in receivables, net on the Company’s consolidated balance sheets.
Activity relating to the Company’s loans and preferred equity held for investment, net was as follows (dollars in thousands):
Carrying Value
Six Months Ended June 30,
20262025
Balance at January 1$2,590,914 $2,352,993 
Acquisitions/originations/additional funding(1)
559,455 210,652 
Loan maturities/principal repayments(1)
(292,980)(146,419)
(Increase) decrease of CECL reserve(2)
(14,883)86 
Discount accretion and fee amortization, net(3,306)1,032 
Capitalized interest, net of repayments1,005 1,048 
Transfer to Real Estate, net(3)(4)
(45,200)(165,876)
Charge-off of CECL reserve-transfer to Real Estate, net(3)(4)
— 2,332 
Charge-off of loan held for investment(5)(6)
(3,626)(27,366)
Charge-off of CECL reserve-other(5)(6)
3,626 27,366 
Balance at June 30$2,795,005 $2,255,848 
_________________________________________
(1)During the first quarter of 2025, the Company amended a senior mixed-use loan as part of the resolution of a senior mixed-use loan with the same sponsor. In relation to this amendment, there was a transfer of principal of $8.8 million. This transfer is not included within these captions as it was neither additional funding nor a repayment. See “Loan Modifications” below for more detail. During the six months ended June 30, 2026, the Company originated 18 loans and preferred equity with a total of $597.4 million in committed principal balance.
(2)(Increase) decrease of CECL reserve excludes $(0.4) million for the six months ended June 30, 2026 and $(0.4) million for the six months ended June 30, 2025 as determined by the Company’s PD/LGD model for unfunded commitments reported on the consolidated statements of operations, with a corresponding offset to accrued and other liabilities recorded on the Company’s consolidated balance sheets.
(3)During the first quarter of 2026, the Company acquired legal title to one multifamily property through foreclosure. As a result, the property was consolidated as real estate and removed from loans held from investment, net. The CECL reserve related to this loan was charged off in 2025. There was no gain or loss recorded as part of the consolidation. Refer to Note 4, “Real Estate, net” for further discussion.
(4)During the first quarter of 2025, the Company eliminated a multifamily loan in Mesa, Arizona as part of the consolidation of the Mesa, Arizona property as the primary beneficiary. During the second quarter of 2025, the Company foreclosed on a hotel loan in San Jose, California. As a result, the properties were consolidated as real estate and removed from loans held from investment, net. The CECL reserve related to these loans were charged off and the net amount is reflected as an addition to real estate, net. There was no gain or loss recorded as part of the consolidation. Refer to Note 4, “Real Estate, net” for further discussion.
(5)During the six months ended June 30, 2026, the Company charged off uncollectible amounts of $4.4 million relating to three multifamily loans based on resolution of the loans. In addition, the Company had a reversal of charge-offs of $0.8 million based on additional proceeds received upon resolution of an office loan and an industrial loan.
(6)During the six months ended June 30, 2025, the Company charged off uncollectible amounts of $27.3 million relating to two multifamily loans based on resolution of the loans.

Loan Modifications
The Company may amend or modify a loan depending on the loan’s specific facts and circumstances. These loan modifications typically include additional time for the borrower to refinance or sell the collateral property, adjustment or waiver of performance tests that are prerequisite to the extension of a loan’s maturity, and/or deferral of scheduled principal payments. In exchange for a modification, the Company may receive a partial repayment of principal, a short-term accrual of capitalized interest for a portion of interest due, a cash infusion to replenish interest or capital improvement reserves, termination of all or a portion of the remaining unfunded loan commitment, additional call protection, and/or increase the loan coupon.
During the first quarter of 2025, the Company amended a senior mixed-use loan (“Loan A”) as part of the resolution of a senior mixed-use loan (“Loan B”) with the same sponsor. The sponsor obtained new financing on Loan B collateral that was $8.8 million short of a full principal payoff. The $8.8 million of principal was transferred to Loan A as part of the full resolution of Loan B. A joint venture agreement was entered into with the sponsor with respect to the Loan B collateral providing that (i) any available cash after Loan B debt service is paid is distributed to the Company to pay down Loan A and (ii) if, at any time after two years, Loan A is not paid off, the Company may unilaterally force a sale of the collateral for Loan B. During the fourth quarter of 2025, Loan A was further modified to allow funds to be used to pay for architecture, design, and permitting fees to better position the collateral for a sale. The maturity of Loan A and the venture agreement were also shortened by nine months. In the second quarter of 2026, the total commitment of Loan A was increased by $0.5 million. In the third quarter of 2026, Loan A was extended to August 2026.
Preferred Equity Investment Originations
During the six months ended June 30, 2026, the Company originated one preferred equity investment. During the year ended December 31, 2025, the Company originated nine preferred equity investments. Refer to “Unconsolidated VIEs” in Note 2, “Summary of Significant Accounting Policies” for more details on these originations.
Nonaccrual and Past Due Loans
Loans that are 90 days or more past due as to principal or interest, or where reasonable doubt exists as to timely collection, are generally considered nonperforming and placed on nonaccrual status.
The following table provides an aging summary of loans held for investment at carrying values before CECL reserve (dollars in thousands):
Current or Less Than 30 Days Past Due
30-59 Days Past Due(1)
60-89 Days Past Due
90 Days or More Past Due (2)(3)
Total Loans
June 30, 2026$2,821,918 $56,640 $— $15,105 $2,893,663 
December 31, 20252,641,623 — — 36,692 2,678,315 
_________________________________________
(1)At June 30, 2026, includes one multifamily senior loan with a carrying value of $56.6 million which was in maturity and payment default. In July 2026, the loan was extended to December 2026 and interest was paid current.
(2)At June 30, 2026, includes one office mezzanine loan which was placed on nonaccrual status on April 1, 2024, with a carrying value of $15.1 million.
(3)At December 31, 2025, includes one industrial senior loan which was placed on nonaccrual status on September 9, 2025, with a carrying value of $22.0 million and an office mezzanine loan which was placed on nonaccrual status on April 1, 2024, with a carrying value of $14.7 million. Subsequent to December 31, 2025, the industrial loan was resolved.

As of June 30, 2026, all loans were performing in accordance with the contractual terms of their governing documents and were categorized as performing loans, except one nonaccrual office mezzanine loan and one multifamily senior loan. The multifamily senior loan in payment and maturity default was extended and interest was paid current in July 2026. As of December 31, 2025, all loans were performing in accordance with the contractual terms of their governing documents and were categorized as performing loans, except for one nonaccrual industrial senior loan and one nonaccrual office mezzanine loan. For the six months ended June 30, 2026, and June 30, 2025, no debt investment individually contributed more than 10.0% of interest income.
Current Expected Credit Loss Reserve
The following table provides details on the changes in CECL reserves (dollars in thousands):
CECL reserve at December 31, 2025$87,401 
     Decrease in general CECL reserve(1)
(2,085)
     Increase in specific CECL reserve(2)
2,639 
     Charge-off of CECL reserve - other(2)
(2,639)
CECL reserve at March 31, 2026$85,316 
Increase in general CECL reserve(1)
$13,342 
Increase in specific CECL reserve(2)
987 
Charge-offs of CECL reserve - other(2)
(987)
CECL reserve at June 30, 2026$98,658 
CECL reserve at December 31, 2024$165,932 
Decrease in general CECL reserve(1)
(9,524)
Increase in specific CECL reserve(2)
9,174 
Charge-offs of CECL reserve - other(2)
(9,174)
Charge-offs of CECL reserve - transfer to Real Estate, net and Real Estate Held for Sale(3)
(1,043)
CECL reserve at March 31, 2025$155,365 
Decrease in general CECL reserve$(18,798)
Increase in specific CECL reserve(2)
19,482 
Charge-offs of CECL reserve - other(2)
(18,192)
Charge-offs of CECL reserve - transfer to Real Estate, net and Real Estate Held for Sale(4)
(1,290)
CECL reserve at June 30, 2025$136,567 
_________________________________________
(1)Excludes CECL reserves related to unfunded commitments reported on the consolidated statement of operations for the three months ended March 31, 2026: $1.2 million, June 30, 2026: $(0.8) million, March 31, 2025: $0.5 million, June 30, 2025 $(0.1) million.
(2)During the first six months of 2026, the Company recorded specific CECL reserves totaling $2.9 million for one multifamily mezzanine loan, $0.9 million for one multifamily senior loan and $0.6 million for one multifamily loan and had reversals of $0.6 million relating to one industrial loan and $0.2 million relating to one office senior loan. The CECL reserves were charged off during the period. During the first six months of 2025, the Company recorded specific CECL reserves totaling $28.7 million for two multifamily loans and one hotel loan, all of which were charged off during the six months ended June 30, 2025. As of June 30, 2025, the hotel is classified as real estate, net. Subsequent to June 30, 2025, one multifamily loan was acquired and classified as real estate, net.
(3)During the first quarter of 2025, the Company consolidated a multifamily loan as the primary beneficiary. As a result, the property was consolidated as real estate. The CECL reserve related to this loan was charged off.
(4)During the second quarter of 2025, the Company consolidated one hotel loan upon foreclosure. As a result, the property was consolidated as real estate. The CECL reserve related to this loan was charged off.

Loans are typically secured by direct senior priority liens on real estate properties or by interests in entities that directly own real estate properties, which serve as the primary source of cash for the payment of principal and interest. The Company evaluates its loans at least quarterly and differentiates the relative credit quality principally based on: (i) whether the borrower is currently paying contractual debt service in accordance with its contractual terms; and (ii) whether the Company believes the borrower will be able to perform under its contractual terms in the future, as well as the Company’s expectations as to the ultimate recovery of principal at maturity.
The following tables provide a summary by carrying values before any CECL reserves of the Company’s loans and preferred equity held for investment by year of origination and credit quality risk ranking as of June 30, 2026, and December 31, 2025 (dollars in thousands). Refer to Note 2, “Summary of Significant Accounting Policies” for loan risk ranking definitions.
At June 30, 2026, the weighted average risk ranking for loans and preferred equity held for investment was 3.0.
June 30, 2026
Year of Origination
Risk Rankings20262025202420232022 and earlierTotal
Senior loans
3$530,876 $656,780 $83,129 $— $1,458,783 $2,729,568 
4— — — — 132,836 132,836 
Total Senior loans530,876 656,780 83,129 — 1,591,619 2,862,404 
Mezzanine loans
3— — — 15,105 — 15,105 
Total Mezzanine loans— — — 15,105 — 15,105 
Preferred Equity
3633 12,455 — — — 13,088 
4— 3,066 — — — 3,066 
Total Preferred Equity633 15,521 — — — 16,154 
Total Loans and preferred equity held for investment$531,509 $672,301 $83,129 $15,105 $1,591,619 $2,893,663 
Current period gross write-offs$— $— $— $— $3,626 $3,626 

As of December 31, 2025, the weighted average risk ranking for loans and preferred equity held for investment was 3.1.
December 31, 2025
Year of Origination
Risk Rankings20252024202320222021 and earlierTotal
Senior loans
3$723,723 $79,019 $— $630,338 $965,963 $2,399,043 
4— — — — 65,123 65,123 
5— — — 88,880 64,787 153,667 
Total Senior loans723,723 79,019 — 719,218 1,095,873 2,617,833 
Mezzanine loans
3— — 14,692 34,377 — 49,069 
Total Mezzanine loans— — 14,692 34,377 — 49,069 
Preferred Equity
310,327 — — — — 10,327 
41,086 — — — — 1,086 
Total Preferred Equity11,413 — — — — 11,413 
Total Loans and preferred equity held for investment$735,136 $79,019 $14,692 $753,595 $1,095,873 $2,678,315 
Current period gross write-offs(1)
$— $— $— $25,137 $77,307 $102,444 
_____________________________________
(1)Current period gross write-offs exclude all transfers to real estate, net.
Lending Commitments
The Company has lending commitments to borrowers pursuant to certain loan and preferred equity agreements in which the borrower may submit a request for funding contingent on achieving certain criteria, which must be approved by the Company as lender, such as leasing, performance of capital expenditures and construction in progress with an approved budget. Assuming the terms to qualify for future advances, if any, had been met, total gross unfunded lending commitments were $145.5 million and $112.2 million at June 30, 2026 and December 31, 2025, respectively. Refer to Note 12, “Commitments and Contingencies” for further details. The Company recorded $1.0 million and $0.7 million for allowance for lending commitments in accrued and other liabilities on its consolidated balance sheets in accordance with CECL at June 30, 2026 and December 31, 2025, respectively. See Note 2, “Summary of Significant Accounting Policies” for further details.