Loans Receivable, net	6 Months Ended
Jun. 30, 2026
Loans Receivable, net
Loans Receivable, net	Note 6—Loans Receivable, net In the second quarter of 2025, the Company began originating leasehold loans in conjunction with certain of its Ground Leases. These leasehold loans allow the Company’s Ground Lease tenants to receive their full capital structure needs from one source. As of June 30, 2026, the Company had five senior mortgages with an aggregate outstanding principal balance of $65.0 million and an aggregate carrying value of $65.0 million. As of December 31, 2025, the Company had four senior mortgages with an aggregate outstanding principal balance of $46.0 million and an aggregate carrying value of $46.1 million. The Company’s five leasehold loans have initial maturities that range from May 2028 to December 2029, excluding all extension options that can be exercised by the borrower subject to certain conditions, and accrue interest at a weighted average rate of 5.98%, assuming a SOFR rate of 3.65% as of June 30, 2026 for the Company’s four floating rate loans. Credit Characteristics—As part of the Company’s process for monitoring the credit quality of its leasehold loans, it performs a quarterly loan portfolio assessment and assigns risk ratings to each of its performing loans. Risk ratings, which range from 1 (lower risk) to 5 (higher risk), are based on judgments which are inherently uncertain, and there can be no assurance that actual performance will be similar to current expectations. The Company designates loans as non-performing at such time as: (1) interest payments become 90 days delinquent; (2) the loan has a maturity default; or (3) management determines it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan. All non-performing loans, if any, are placed on non-accrual status and income is only recognized in certain cases upon actual cash receipt. As of June 30, 2026 and December 31, 2025, all of the Company’s leasehold loans were current in their payment status and had a risk rating of 3. Allowance for Credit Losses—As of June 30, 2026 and December 31, 2025, the Company’s allowance for credit losses on its loans receivable was $0.5 million and $0.3 million, respectively, and the Company’s allowance for credit losses on its unfunded commitments was $1.0 million and $1.1 million, respectively. Allowances on unfunded commitments are recorded in “Accounts payable and accrued expenses” on the Company’s consolidated balance sheets. During the three and six months ended June 30, 2026, the Company recorded a (recovery of) provision for credit losses of ($0.1) million and $0.1 million (including allowances on unfunded commitments), respectively, on its leasehold loans. The provision for credit losses during the three and six months ended June 30, 2026 was due primarily to a change in macroeconomic forecasts and the origination of a new loan during the six months ended June 30, 2026. During the three and six months ended June 30, 2025, the Company recorded a provision for credit losses (refer to Note 3) of $1.3 million, including $1.0 million related to unfunded commitments. The provision for credit losses during the three and six months ended June 30, 2025 was due to the origination of new loans. Unfunded Commitments—The Company has commitments to fund construction and development loans over a period of time if and when its borrowers meet established milestones and other performance criteria. The Company refers to these arrangements as performance-based commitments. As of June 30, 2026, the Company had $132.1 million of such commitments.

Loans Receivable, net

6 Months Ended

Jun. 30, 2026

Note 6—Loans Receivable, net

In the second quarter of 2025, the Company began originating leasehold loans in conjunction with certain of its Ground Leases. These leasehold loans allow the Company’s Ground Lease tenants to receive their full capital structure needs from one source. As of June 30, 2026, the Company had five senior mortgages with an aggregate outstanding principal balance of $65.0 million and an aggregate carrying value of $65.0 million. As of December 31, 2025, the Company had four senior mortgages with an aggregate outstanding principal balance of $46.0 million and an aggregate carrying value of $46.1 million. The Company’s five leasehold loans have initial maturities that range from May 2028 to December 2029, excluding all extension options that can be exercised by the borrower subject to certain conditions, and accrue interest at a weighted average rate of 5.98%, assuming a SOFR rate of 3.65% as of June 30, 2026 for the Company’s four floating rate loans.

Credit Characteristics—As part of the Company’s process for monitoring the credit quality of its leasehold loans, it performs a quarterly loan portfolio assessment and assigns risk ratings to each of its performing loans. Risk ratings, which range from 1 (lower risk) to 5 (higher risk), are based on judgments which are inherently uncertain, and there can be no assurance that actual performance will be similar to current expectations. The Company designates loans as non-performing at such time as: (1) interest payments become 90 days delinquent; (2) the loan has a maturity default; or (3) management determines it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan. All non-performing loans, if any, are placed on non-accrual status and income is only recognized in certain cases upon actual cash receipt. As of June 30, 2026 and December 31, 2025, all of the Company’s leasehold loans were current in their payment status and had a risk rating of 3.

Allowance for Credit Losses—As of June 30, 2026 and December 31, 2025, the Company’s allowance for credit losses on its loans receivable was $0.5 million and $0.3 million, respectively, and the Company’s allowance for credit losses on its unfunded commitments was $1.0 million and $1.1 million, respectively. Allowances on unfunded commitments are recorded in “Accounts payable and accrued expenses” on the Company’s consolidated balance sheets. During the three and six months ended June 30, 2026, the Company recorded a (recovery of) provision for credit losses of ($0.1) million and $0.1 million (including allowances on unfunded commitments), respectively, on its leasehold loans. The provision for credit losses during the three and six months ended June 30, 2026 was due primarily to a change in macroeconomic forecasts and the origination of a new loan during the six months ended June 30, 2026. During the three and six months ended June 30, 2025, the Company recorded a provision for credit losses (refer to Note 3) of $1.3 million, including $1.0 million related to unfunded commitments. The provision for credit losses during the three and six months ended June 30, 2025 was due to the origination of new loans.

Unfunded Commitments—The Company has commitments to fund construction and development loans over a period of time if and when its borrowers meet established milestones and other performance criteria. The Company refers to these arrangements as performance-based commitments. As of June 30, 2026, the Company had $132.1 million of such commitments.