Commitments and Contingencies

6 Months Ended

Jun. 30, 2026

Commitments and Contingencies Disclosure [Abstract]

Lending Commitments

The Company has lending commitments to borrowers pursuant to certain loan 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. At June 30, 2026, assuming the terms to qualify for future fundings, if any, had been met, total unfunded lending commitments for loans and preferred equity held for investment were $137.9 million for senior loans, $1.7 million for mezzanine loans and $5.9 million for preferred equity. At December 31, 2025, total unfunded lending commitments for loans held for investment were $101.9 million for senior loans, $2.1 million for mezzanine loans and $8.2 million for preferred equity.

Ground Lease Obligation

In connection with real estate acquisitions, the Company assumed certain non-cancellable operating ground leases as lessee or sublessee with expiration dates through 2050. Rent on certain ground leases are paid directly by tenants.

At June 30, 2026 and December 31, 2025, the weighted average remaining lease term was 4.8 years and 11.8 years for ground leases, respectively.

The following table presents ground lease expense, included in property operating expense, for the three and six months ended June 30, 2026 and 2025 (dollars in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Operating lease expense:
Minimum lease expense	$	730	$	804	$	1,519	$	1,598
Variable lease expense	—		—		—		—
	$	730	$	804	$	1,519	$	1,598

The operating lease liability for ground leases was determined using a weighted average discount rate of 5.4%.

For these ground leases, the Company has elected the practical expedient to combine lease and related nonlease components as a single lease component.

Office Lease

At June 30, 2026 and December 31, 2025, the weighted average remaining lease term was 2.9 years and 3.4 years for office leases, respectively. The office leases are located in New York, New York and Los Angeles, California.

For the three and six months ended June 30, 2026 and 2025, the following table summarizes lease expense, included in operating expense (dollars in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Corporate Offices
Operating lease expense:
Fixed lease expense	$	331	$	327	$	659	$	651
Variable lease expense	—		—		—		—
	$	331	$	327	$	659	$	651

Total cash paid for office leases was $0.8 million for the six months ended June 30, 2026.

The operating lease liability for the office leases was determined using a weighted average discount rate of 2.4%.

For these office leases, the Company has elected the practical expedient to combine lease and related nonlease components as a single lease component.

Litigation and Claims

The Company may be involved in litigation and claims in the ordinary course of the business. As of June 30, 2026, the Company was not involved in any legal proceedings that are expected to have a material adverse effect on the Company’s results of operations, financial position, or liquidity.