v3.26.1
Debt Obligations
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Debt Obligations Debt Obligations
Credit and Repurchase Facilities
Borrowings under our credit and repurchase facilities are as follows ($ in thousands):
June 30, 2026December 31, 2025
Current
Maturity		Extended
Maturity		Debt
Carrying
Value (1)		Collateral
Carrying
Value		Wtd. Avg.
Note
Rate (2)		Debt
Carrying
Value (1)		Collateral
Carrying
Value
Structured Business
$1.66B repurchase facility
(6)N/A$1,543,778 $2,145,982 5.56%$1,149,944 $1,555,403 
$1.55B joint repurchase facility (3)
Jul. 2027Jul. 20281,569,336 2,268,747 5.91%882,635 1,468,161 
$1.00B repurchase facility
(5)N/A857,560 1,256,534 6.49%879,499 1,207,513 
$850M repurchase facility (3)
Dec. 2026Dec. 2027341,017 599,935 6.51%443,880 725,309 
$650M repurchase facility (3)
Oct. 2026N/A212,203 251,274 6.27%462,694 549,069 
$400M credit facility
Mar. 2027N/A45,167 84,664 7.00%66,479 125,099 
$400M repurchase facility
Jan. 2027Jan. 2028242,775 335,775 6.03%291,342 383,195 
$350M repurchase facility (7)
Mar. 2027N/A147,823 248,081 5.63%127,199 238,422 
$300M credit facility
Mar. 2029Mar. 203065,442 85,637 6.74%— — 
$250M repurchase facility
Sept. 2027Sept. 202866,455 99,072 6.68%73,052 113,121 
$250M repurchase facility
Oct. 2026N/A62,345 78,500 5.19%98,186 126,340 
$250M repurchase facility
Oct. 2027N/A124,489 163,248 6.24%78,963 102,758 
$200M credit facility
Mar. 2027Mar. 202871,316 96,696 6.29%41,114 59,147 
$40M credit facility (7)
Sept. 2026Sept. 202715,574 24,610 6.09%15,532 24,610 
$35M working capital facility (7)
Sept. 2026N/A35,000 — 6.65%35,000 — 
$21M loan specific credit facility (9)
Jul. 2026N/A20,798 26,000 5.83%63,456 87,000 
Repurchase facility - securities (3)(4)N/AN/A31,903 — 5.07%50,280 — 
Structured Business total (8)$5,452,981 $7,764,755 5.98%$4,759,255 $6,765,147 
Agency Business
$750M ASAP agreement
N/AN/A$21,996 $22,154 4.87%$91,965 $92,733 
$500M repurchase facility
Nov. 2026N/A99,050 100,571 5.15%89,427 89,573 
$200M credit facility (7)
Mar. 2027N/A168,609 170,438 5.10%101,802 102,409 
$200M credit facility (7)
Jun. 2027N/A4,379 4,578 4.95%42,887 43,096 
$100M joint repurchase facility (3)
Jul. 2027Jul. 202865,243 77,729 6.15%64,315 77,798 
Agency Business total$359,277 $375,470 5.29%$390,396 $405,609 
Consolidated total$5,812,258 $8,140,225 5.94%$5,149,651 $7,170,756 
________________________
(1)At June 30, 2026 and December 31, 2025, debt carrying value for the Structured Business was net of unamortized deferred financing fees of $9.4 million and $11.7 million, respectively, and for the Agency Business was net of unamortized deferred financing fees of $0.3 million at both June 30, 2026 and December 31, 2025.
(2)At June 30, 2026 and December 31, 2025, all credit and repurchase facilities are variable rate loans.
(3)These facilities are subject to margin call provisions associated with changes in interest spreads.
(4)At both June 30, 2026 and December 31, 2025, this facility was collateralized by investment grade notes we retained from our BTR CLO 1 securitization with a principal balance of $41.0 million, and at December 31, 2025 it was also collateralized by certificates retained by us from our Freddie Mac Q Series securitization (“Q Series securitization”) with a principal balance of $26.5 million.
(5)The commitment amount under this facility expires six months after the lender provides written notice. We then have an additional six months to repurchase the underlying loans.
(6)This facility matures at the latest maturity date of all purchased assets, which is currently March 2029.
(7)These facilities were extended in 2026.
(8)These amounts exclude outstanding notes payable on our REO assets with a debt carrying value of $270.4 million and $223.0 million at June 30, 2026 and December 31, 2025, respectively.
(9)This facility matures on July 31, 2026 and will not be renewed.
Structured Business
At June 30, 2026 and December 31, 2025, the weighted average interest rate for the credit and repurchase facilities of our Structured Business, including certain fees and costs, such as structuring, commitment, non-use and warehousing fees, was 6.24% and 6.40%, respectively. The leverage on our loan and investment portfolio financed through our credit and repurchase facilities, excluding the securities repurchase facility and the working capital facility, was 69% at both June 30, 2026 and December 31, 2025.
In June 2026, we amended a $1.50 billion joint repurchase facility to increase the facility size to $1.65 billion to refinance loans previously held in CLO 17. The interest rate on the loans transferred from CLO 17 is SOFR plus 1.65%.
In May 2026, we amended a $1.22 billion repurchase facility to increase the facility size to $1.66 billion to refinance loans previously held in CLO 17. The interest rate on the loans transferred from CLO 17 is SOFR plus 1.75%.
In March 2026, we entered into a $300.0 million credit facility to finance BTR loans that matures in March 2029, with a one-year extension option. The facility may be increased, subject to lender approval, by up to $50.0 million to a maximum of $350.0 million. The facility has an interest rate of SOFR plus 3.00%, with a SOFR floor of 2.50%.
Agency Business
In March 2026, we extended the maturity of a $200.0 million credit facility to March 2027 and reduced the interest rate from SOFR plus 1.40% to SOFR plus 1.35%.
In June 2026, we extended the maturity of our other $200.0 million credit facility to June 2027 and reduced the interest rate from SOFR plus 1.35% to SOFR plus 1.20%.
Securitized Debt
We account for securitized debt transactions on our consolidated balance sheet as financing facilities. These transactions are considered VIEs for which we are the primary beneficiary and are consolidated in our financial statements. The investment grade notes and guaranteed certificates issued to third parties are treated as secured financings and are non-recourse to us.
Borrowings and the corresponding collateral under our securitized debt transactions are as follows ($ in thousands):
DebtCollateral (3)
LoansCash
June 30, 2026Face ValueCarrying
Value (1)		Wtd. Avg.
Rate (2)		UPBCarrying
Value		Restricted
Cash (4)
CLO 21$673,990 $668,339 5.46 %$756,567 $753,112 $— 
CLO 20933,187 925,853 5.47 %1,020,331 1,016,667 25,834 
BTR CLO 1595,933 589,114 6.18 %690,402 689,083 611 
CLO 18 (5)788,940 788,940 5.96 %1,182,619 1,182,470 — 
Total securitized debt$2,992,050 $2,972,246 5.74 %$3,649,919 $3,641,332 $26,445 
December 31, 2025
CLO 20$933,187 $924,504 5.50 %$1,045,664 $1,040,984 $— 
BTR CLO 1525,304 517,395 6.29 %685,746 683,807 — 
CLO 18 (5)971,595 970,979 6.01 %1,339,523 1,338,395 21,469 
CLO 17 (5)1,055,700 1,055,380 5.66 %1,443,820 1,443,845 — 
Total CLOs3,485,786 3,468,258 5.81 %4,514,753 4,507,031 21,469 
Q Series securitization— — — 50,600 50,600 — 
Total securitized debt$3,485,786 $3,468,258 5.81 %$4,565,353 $4,557,631 $21,469 
________________________
(1)Debt carrying value is net of $19.8 million and $17.5 million of deferred financing fees at June 30, 2026 and December 31, 2025, respectively.
(2)At June 30, 2026 and December 31, 2025, the aggregate weighted average note rate for our CLOs, including certain fees and costs, was 6.01% and 6.07%, respectively.
(3)At June 30, 2026 and December 31, 2025, 20 and 39 loans, respectively, with a total UPB of $808.3 million and $1.69 billion, respectively, were deemed a "credit risk" as defined by the CLO indentures. A credit risk asset is generally defined as one that, in the CLO collateral manager's reasonable business judgment, has a significant risk of becoming a defaulted asset.
(4)Represents restricted cash held for principal repayments as well as for reinvestment in the CLOs. Does not include restricted cash related to interest payments, delayed fundings and expenses totaling $76.6 million and $10.1 million at June 30, 2026 and December 31, 2025, respectively.
(5)The replenishment period for CLO 17 and CLO 18 ended in June 2024 and August 2024, respectively.
CLO 17. In May 2026, we unwound CLO 17, redeeming the remaining outstanding notes totaling $787.0 million, which were repaid from the availability in our credit and repurchase facilities.
CLO 21. In March 2026, we completed CLO 21, through a wholly owned subsidiary, issuing nine tranches of CLO notes totaling $762.6 million. Of the total CLO notes issued, $674.0 million consisted of investment grade notes issued to third-party investors. The remaining $88.6 million were below investment grade notes that were retained by us. As of the CLO closing date, the notes were secured by a portfolio of real estate related assets and cash with a face value of $662.6 million, with the real estate related assets primarily comprised of first-lien mortgage bridge loans contributed from our existing loan portfolio. The CLO has an approximate two and a half year replacement period, during which principal payments and sale proceeds from the underlying loans may be reinvested into qualifying replacement loan obligations, subject to conditions outlined in the indenture. Thereafter, the outstanding debt balance will decrease as loans are repaid. The proceeds of the issuance also included $100.0 million for the purpose of acquiring additional loan obligations within 180 days from the CLO closing date, which we subsequently utilized, resulting in the issuer owning loan obligations with a face value of $762.6 million, representing leverage of 88%. The notes sold to third parties had an initial weighted average interest rate of 1.73% plus term SOFR, with interest payable monthly.
Securitization Paydowns. During the six months ended June 30, 2026, outstanding notes totaling $182.7 million on our existing CLOs have been paid down.
Senior Unsecured Notes
A summary of our senior unsecured notes is as follows ($ in thousands):
June 30, 2026December 31, 2025
Senior
Unsecured Notes		 Issuance
Date 		MaturityUPBCarrying
Value (1)		Wtd. Avg.
Rate (2)		UPBCarrying
Value (1) 		Wtd. Avg.
Rate (2)
8.50% Notes (3)
Dec. 2025Dec. 2028$400,000 $395,238 8.50 %$400,000 $394,340 8.50 %
7.875% Notes (4)
Jul. 2025Jul. 2030500,000 490,553 7.88 %500,000 489,397 7.88 %
9.00% Notes (3)
Oct. 2024Oct. 2027100,000 99,223 9.00 %100,000 98,934 9.00 %
8.50% Notes (3)
Oct. 2022Oct. 2027150,000 149,303 8.50 %150,000 149,041 8.50 %
5.00% Notes (3)
Dec. 2021Dec. 2028180,000 178,938 5.00 %180,000 178,725 5.00 %
4.50% Notes (3)(5)
Aug. 2021Sept. 2026270,000 269,860 4.50 %270,000 269,439 4.50 %
4.50% Notes (3)
Mar. 2020Mar. 2027275,000 274,654 4.50 %275,000 274,412 4.50 %
5.00% Notes (6)
Apr. 2021Apr. 2026— — — 175,000 174,790 5.00 %
$1,875,000 $1,857,769 6.86 %$2,050,000 $2,029,078 6.70 %
________________________
(1)At June 30, 2026 and December 31, 2025, the carrying value is net of deferred financing fees of $17.2 million and $20.9 million, respectively.
(2)At June 30, 2026 and December 31, 2025, the aggregate weighted average note rate, including certain fees and costs, was 7.23% and 7.06%, respectively.
(3)These notes can be redeemed by us prior to three months before the maturity date, at a redemption price equal to 100% of the aggregate principal amount, plus a “make-whole” premium and accrued and unpaid interest. We have the right to redeem the notes
within three months prior to the maturity date at a redemption price equal to 100% of the aggregate principal amount, plus accrued and unpaid interest.
(4)These notes can be redeemed by us prior to six months before the maturity date, at a redemption price equal to 100% of the aggregate principal amount, plus a “make-whole” premium and accrued and unpaid interest. We have the right to redeem the notes within six months prior to the maturity date at a redemption price equal to 100% of the aggregate principal amount, plus accrued and unpaid interest.
(5)In July 2026, we redeemed our 4.50% senior notes. See "Convertible Senior Unsecured Notes" below.
(6)In April 2026, we redeemed our 5.00% senior notes at maturity.
Convertible Senior Unsecured Notes
In August 2025, our convertible notes matured, and were fully repaid with a portion of the net proceeds received from our 7.875% senior unsecured notes issued in July 2025. During the three months ended June 30, 2025, we incurred interest expense on the notes totaling $6.1 million, of which $5.4 million and $0.7 million related to the cash coupon and deferred financing fees, respectively. During the six months ended June 30, 2025, we incurred interest expense on the notes totaling $12.2 million, of which $10.8 million and $1.4 million related to the cash coupon and deferred financing fees, respectively.
Subsequent Event. In July 2026, we issued $375.0 million in aggregate principal amount of 6.25% convertible senior unsecured notes (the “6.25% Convertible Notes”) through a private placement offering, which includes the exercised initial purchaser's over-allotment option of $50.0 million. The 6.25% Convertible Notes pay interest semiannually in arrears and are scheduled to mature in July 2029, unless earlier converted or repurchased by the holders pursuant to their terms. The initial conversion rate was 164.0016 shares of common stock per $1,000 of principal representing a conversion price of $6.10 per share of common stock. We used the net proceeds to repurchase 2,140,300 shares of our common stock for $11.6 million, repurchase $102.7 million of our common stock pursuant to a prepaid forward transaction and used the remaining proceeds, together with cash on hand, to redeem, in full, our outstanding $270.0 million 4.50% senior unsecured notes that were due in September 2026. The initial aggregate number of shares of our common stock underlying the prepaid forward transaction is approximately 18,941,200 shares.
Junior Subordinated Notes
The carrying values of borrowings under our junior subordinated notes were $145.9 million and $145.5 million at June 30, 2026 and December 31, 2025, respectively, which is net of a deferred amount of $7.3 million and $7.6 million, respectively, (which is amortized into interest expense over the life of the notes) and deferred financing fees of $1.2 million at both June 30, 2026 and December 31, 2025. These notes have maturities ranging from March 2034 through April 2037 and pay interest quarterly at a floating rate. The weighted average note rate was 6.60% and 6.52% at June 30, 2026 and December 31, 2025, respectively. Including certain fees and costs, the weighted average note rate was 6.69% and 6.61% at June 30, 2026 and December 31, 2025, respectively.
Debt Covenants
Credit and Repurchase Facilities and Unsecured Debt. The credit and repurchase facilities and unsecured debt contain various financial covenants, including, but not limited to, minimum liquidity requirements, minimum net worth requirements, minimum unencumbered asset requirements, as well as certain other debt service coverage ratios, debt to equity ratios and minimum servicing portfolio tests. We were in compliance with all financial covenants and restrictions at June 30, 2026.
CLOs. Our CLO vehicles contain interest coverage and asset overcollateralization covenants that must be met as of the waterfall distribution date in order for us to receive such payments. If we fail these covenants in any of our CLOs, all cash flows from the applicable CLO would be diverted to repay principal and interest on the outstanding CLO bonds and we would not receive any residual payments until that CLO regained compliance with such tests. Our CLOs were in compliance with all such covenants at June 30, 2026, as well as on the most recent determination dates in July 2026. In the event of a breach of the CLO covenants that could not be cured in the near-term, we would be required to fund our non-CLO expenses, including employee costs, distributions required to maintain our REIT status, debt costs, and other expenses with (1) cash on hand, (2) income from any CLO not in breach of a covenant test, (3) income from real property and loan assets, (4) sale of assets, or (5) accessing the equity or debt capital markets, if available. We have the right to cure covenant breaches which would resume normal residual payments to us by purchasing non-performing loans out of the CLOs. However, we may not have sufficient liquidity available to do so at such time.
Our CLO compliance tests as of the most recent determination dates in July 2026 are as follows:
Cash Flow TriggersCLO 18 BTR CLO 1CLO 20CLO 21
Overcollateralization (1)
Current145.88 %117.47 %112.52 %113.15 %
Limit123.03 %115.47 %110.52 %111.15 %
Pass / FailPass PassPassPass
Interest Coverage (2)
Current140.81 %171.10 %134.60 %133.81 %
Limit120.00 %120.00 %120.00 %120.00 %
Pass / FailPass PassPassPass
________________________
(1)The overcollateralization ratio divides the total principal balance of all collateral in the CLO by the total principal balance of the bonds associated with the applicable ratio. To the extent an asset is considered a defaulted security, the asset’s principal balance for purposes of the overcollateralization test is the lesser of the asset’s market value or the principal balance of the defaulted asset multiplied by the asset’s recovery rate which is determined by the rating agencies. Rating downgrades of CLO collateral will generally not have a direct impact on the principal balance of a CLO asset for purposes of calculating the CLO overcollateralization test unless the rating downgrade is below a significantly low threshold (e.g., CCC-) as defined in each CLO vehicle.
(2)The interest coverage ratio divides interest income by interest expense for the classes senior to those retained by us.
Our CLO overcollateralization ratios as of the determination dates subsequent to each quarter are as follows:
Determination (1)CLO 18 BTR CLO 1CLO 20CLO 21
July 2026145.88 %117.47 %112.52 %113.15 %
April 2026139.84 %117.47 %112.52 %113.15 %
January 2026136.54 %117.47 %112.52 %N/A
October 2025131.38 %117.47 %112.52 %N/A
July 2025130.03 %117.47 %N/AN/A
________________________
(1)This table represents the quarterly trend of our overcollateralization ratio, however, the CLO determination dates are monthly, and we were in compliance with this test for all periods presented.
The ratio will fluctuate based on the performance of the underlying assets, transfers of assets into the CLOs prior to the expiration of their respective replenishment dates, purchase or disposal of other investments, and loan payoffs. No payment due under the junior subordinated indentures may be paid if there is a default under any senior debt and the senior lender has sent notice to the trustee. The junior subordinated indentures are also cross-defaulted with each other.