v3.26.1
Loans and Investments (Tables)
 6 Months Ended
Jun. 30, 2026
Loans and Investments [Abstract]  
Schedule of Structured Business Loan and Investment Portfolio
Our Structured Business loan and investment portfolio consists of ($ in thousands):
June 30, 2026Percent of
Total		Loan
Count		Wtd. Avg.
Pay Rate (1)		Wtd. Avg.
Remaining
Months to
Maturity (2)		Wtd. Avg.
First Dollar
LTV Ratio (3)		Wtd. Avg.
Last Dollar
LTV Ratio (4)
Bridge loans (5)$11,318,551 93 %3866.39 %14.50 %78 %
Mezzanine loans300,880 3 %618.01 %45.157 %80 %
Construction - multifamily285,482 2 %99.00 %22.50 %59 %
Preferred equity investments202,118 2 %346.87 %40.163 %82 %
Total UPB12,107,031 100 %4906.50 %15.92 %77 %
Allowance for credit losses(163,431)
Unearned revenue(28,384)
Loans and investments, net (6)$11,915,216 
December 31, 2025
Bridge loans (5)$11,371,758 94 %5246.39 %12.90 %77 %
Mezzanine loans290,212 2 %657.84 %52.359 %78 %
Construction - multifamily249,019 2 %99.13 %24.60 %60 %
Preferred equity investments202,118 2 %346.87 %46.062 %80 %
Total UPB12,113,107 100 %6326.49 %14.72 %77 %
Allowance for credit losses(145,971)
Unearned revenue(32,888)
Loans and investments, net (6)$11,934,248 
________________________
(1)“Weighted Average Pay Rate” is a weighted average, based on the unpaid principal balance (“UPB”) of each loan in our portfolio, of the interest rate required to be paid as stated in the individual loan agreements. Certain loans and investments that require an accrual rate to be paid at maturity are not included in the weighted average pay rate as shown in the table.
(2)Including extension options, the weighted average remaining months to maturity at June 30, 2026 and December 31, 2025 was 21.5 and 19.9, respectively.
(3)The “First Dollar Loan-to-Value (“LTV”) Ratio” is calculated by comparing the total of all senior lien positions ahead of our loan or investment within the capital stack to the fair value of the underlying collateral to determine the point at which we will absorb a total loss of our position. If we own the senior most position within the capital stack, the First Dollar LTV Ratio is 0%.
(4)The “Last Dollar LTV Ratio” is calculated by comparing the total of the carrying value of our loan or investment and all senior lien positions ahead of our loan or investment within the capital stack to the fair value of the underlying collateral to determine the point at which we will initially begin to absorb a loss.
(5)At June 30, 2026 and December 31, 2025, bridge loans included 176 and 298, respectively, of SFR loans with a total gross loan commitment of $4.53 billion and $4.73 billion, respectively, of which $3.38 billion and $3.18 billion, respectively, was funded.
(6)Excludes exit fee receivables of $41.5 million and $43.0 million at June 30, 2026 and December 31, 2025, respectively, which is included in other assets on the consolidated balance sheets.
Schedule of the Loan Portfolio's Internal Risk Ratings and LTV Ratios by Asset Class
A summary of the loan portfolio’s internal risk ratings and LTV ratios by asset class at June 30, 2026, and charge-offs recorded for the six months ended June 30, 2026 is as follows ($ in thousands):
UPB by Origination YearTotalWtd. Avg.
First Dollar
LTV Ratio 		Wtd. Avg.
Last Dollar
LTV Ratio
Asset Class / Risk Rating20262025202420232022Prior
Multifamily:
Pass$574,805 $443,399 $50,118 $18,643 $94,477 $158,803 $1,340,245 
Pass/Watch269,500 1,139,077 234,660 88,374 540,818 723,660 2,996,089 
Special Mention— 464,750 206,869 23,570 1,086,717 1,607,844 3,389,750 
Substandard— — 22,758 — 388,659 175,894 587,311 
Doubtful— 1,450 9,460 — 164,015 184,726 359,651 
Total Multifamily$844,305 $2,048,676 $523,865 $130,587 $2,274,686 $2,850,927 $8,673,046 3 %82 %
Single-Family Rental:Percentage of portfolio72 %
Pass$— $27,000 $— $— $— $— $27,000 
Pass/Watch342,645 1,023,989 1,004,907 456,066 287,836 41,106 3,156,549 
Special Mention— 25,250 20,256 130,405 19,675 — 195,586 
Total Single-Family Rental$342,645 $1,076,239 $1,025,163 $586,471 $307,511 $41,106 $3,379,135 0 %66 %
Office:Percentage of portfolio28 %
Pass/Watch$— $— $— $— $— $33,410 $33,410 
Total Office$— $— $— $— $— $33,410 $33,410 0 %88 %
Retail:Percentage of portfolio< 1%
Substandard$— $— $— $— $— $16,424 $16,424 
Doubtful— — — — — 531 531 
Total Retail$— $— $— $— $— $16,955 $16,955 0 %100 %
Land:Percentage of portfolio< 1%
Pass/Watch$— $— $— $— $— $2,785 $2,785 
Total Land$— $— $— $— $— $2,785 $2,785 0 %14 %
Commercial:Percentage of portfolio< 1%
Doubtful$— $— $— $— $— $1,700 $1,700 
Total Commercial$— $— $— $— $— $1,700 $1,700 0 %100 %
Percentage of portfolio < 1%
Grand Total$1,186,950 $3,124,915 $1,549,028 $717,058 $2,582,197 $2,946,883 $12,107,031 2 %77 %
Charge-offs$— $— $4,911 $— $17,322 $3,356 $25,589 
A summary of the loan portfolio’s internal risk ratings and LTV ratios by asset class at December 31, 2025, and charge-offs recorded during 2025 is as follows ($ in thousands):
UPB by Origination YearTotalWtd. Avg.
First Dollar
LTV Ratio 		Wtd. Avg.
Last Dollar
LTV Ratio
Asset Class / Risk Rating20252024202320222021Prior
Multifamily:
Pass$556,801 $87,533 $22,253 $9,832 $34,843 $26,758 $738,020 
Pass/Watch1,195,412 429,300 108,276 376,064 526,961 159,810 2,795,823 
Special Mention211,404 186,984 185,088 1,788,580 2,028,742 44,479 4,445,277 
Substandard4,990 47,258 21,100 297,729 307,350 — 678,427 
Doubtful— 9,460 — 153,443 28,826 24,565 216,294 
Total Multifamily$1,968,607 $760,535 $336,717 $2,625,648 $2,926,722 $255,612 $8,873,841 3 %81 %
Single-Family Rental:Percentage of portfolio73 %
Pass$98,510 $— $— $— $— $— $98,510 
Pass/Watch859,819 1,006,016 571,891 448,769 71,916 34,216 2,992,627 
Special Mention36,230 — — 52,943 — 4,600 93,773 
Total Single-Family Rental$994,559 $1,006,016 $571,891 $501,712 $71,916 $38,816 $3,184,910 0 %64 %
Office:Percentage of portfolio26 %
Pass/Watch$— $— $— $— $— $33,410 $33,410 
Total Office$— $— $— $— $— $33,410 $33,410 0 %88 %
Retail:Percentage of portfolio< 1%
Substandard$— $— $— $— $— $16,424 $16,424 
Doubtful— — — — — 531 531 
Total Retail$— $— $— $— $— $16,955 $16,955 0 %97 %
Land:Percentage of portfolio< 1%
Pass/Watch$— $— $— $— $— $2,291 $2,291 
Total Land$— $— $— $— $— $2,291 $2,291 0 %77 %
Commercial:Percentage of portfolio< 1%
Doubtful$— $— $— $— $— $1,700 $1,700 
Total Commercial$— $— $— $— $— $1,700 $1,700 0 %100 %
Percentage of portfolio< 1%
Grand Total$2,963,166 $1,766,551 $908,608 $3,127,360 $2,998,638 $348,784 $12,113,107 2 %77 %
Charge-offs, net$— $3,000 $— $24,476 $31,968 $68,893 $128,337 
Schedule of the Changes in the Allowance for Credit Losses
A summary of the changes in the allowance for credit losses is as follows ($ in thousands):
Three Months Ended June 30, 2026
MultifamilySingle-Family RentalRetailCommercialOfficeLandTotal
Allowance for credit losses:
Beginning balance$118,462 $7,910 $2,903 $1,700 $248 $— $131,223 
Provision for credit losses (net of reversals)37,943 1,625 — — 21 — 39,589 
Charge-offs (1)(7,381)— — — — — (7,381)
Ending balance$149,024 $9,535 $2,903 $1,700 $269 $— $163,431 
Three Months Ended June 30, 2025
Allowance for credit losses:
Beginning balance$150,911 $6,524 $3,293 $1,700 $509 $78,000 $240,937 
Provision for credit losses (net of reversals)16,552 788 — — (46)190 17,484 
Charge-offs (1)(15,143)— — — — — (15,143)
Ending balance$152,320 $7,312 $3,293 $1,700 $463 $78,190 $243,278 
Six Months Ended June 30, 2026
Allowance for credit losses:
Beginning balance$131,924 $8,817 $2,903 $1,700 $251 $376 $145,971 
Provision for credit losses (net of reversals)42,689 718 — — 18 (376)43,049 
Charge-offs (1)(25,589)— — — — — (25,589)
Ending balance$149,024 $9,535 $2,903 $1,700 $269 $— $163,431 
Six Months Ended June 30, 2025
Allowance for credit losses:
Beginning balance$148,139 $7,524 $3,293 $1,700 $181 $78,130 $238,967 
Provision for credit losses (net of reversals)23,324 (212)— — 282 60 23,454 
Recoveries(406)— — — — — (406)
Charge-offs (1)(18,737)— — — — — (18,737)
Ending balance$152,320 $7,312 $3,293 $1,700 $463 $78,190 $243,278 
________________________
(1)Includes specific reserves that were charged-off in connection with the foreclosure of the underlying collateral as real estate owned ("REO") assets at fair value of $6.0 million during both the three and six months ended June 30, 2026, and $4.4 million and $8.4 million during the three and six months ended June 30, 2025, respectively.
Schedule of Specific Loans Considered Impaired by Asset Class A summary of our specific reserve loans considered impaired by asset class is as follows ($ in thousands):
June 30, 2026
Asset ClassUPB (1)Carrying
Value		Allowance for
Credit Losses		Wtd. Avg. First
Dollar LTV Ratio		Wtd. Avg. Last
Dollar LTV Ratio
Multifamily$422,144 $427,118 $41,937 0 %97 %
Retail16,955 16,911 2,903 0 %100 %
Commercial1,700 1,700 1,700 0 %100 %
Total$440,799 $445,729 $46,540 0 %97 %
December 31, 2025
Multifamily$366,275 $363,635 $38,487 0 %96 %
Retail16,955 16,855 2,903 0 %97 %
Commercial1,700 1,700 1,700 0 %100 %
Total$384,930 $382,190 $43,090 0 %96 %
________________________
(1)Represents the UPB of 19 and 20 impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class at June 30, 2026 and December 31, 2025, respectively.
Schedule of Non-Performing Loans by Asset Class
A summary of our non-performing loans by asset class is as follows ($ in thousands):
June 30, 2026December 31, 2025
UPBCarrying ValueUPBCarrying Value
Multifamily$426,614 $425,272 $566,906 $553,016 
Commercial1,700 1,700 1,700 1,700 
Retail531 531 531 531 
Total$428,845 $427,503 $569,137 $555,247 
The table below is
a summary of those loans that are 60 days past due or less that we have classified as non-accrual, and changes to those loans for the periods presented ($ in thousands).
Three Months Ended June 30, 2026Six Months Ended June 30, 2026
Beginning balance (0 and 3 multifamily bridge loans)
$— $48,311 
Loans that progressed to greater than 60 days past due— (1,221)
Loans modified or paid off — (47,090)
Additional loans classified as non-accrual94,920 94,920 
Ending balance (3 multifamily bridge loans)
$94,920 $94,920 
Three Months Ended June 30, 2025Six Months Ended June 30, 2025
Beginning balance (5 and 9 multifamily bridge loans)
$142,823 $167,428 
Loans that progressed to greater than 60 days past due— (82,290)
Loans modified or paid off(47,675)(86,165)
Loans transferred to REO(48,500)(48,500)
Additional loans classified as non-accrual10,264 106,439 
Ending balance (3 multifamily bridge loans)
$56,912 $56,912 
Schedule of Financing Receivable, Modified
The following table represents the UPB of loan modifications, as of the modification date, made to borrowers experiencing financial difficulty during the three months ended June 30, 2026 ($ in thousands):
Asset ClassPayment Deferrals With/Without Term Extensions (1)Rate Reductions With/Without Term Extensions (2)Other (3)Total (4)(5)
Multifamily$13,200 $260,723 $113,000 $386,923 
________________________

(1)This loan was modified to a weighted average pay rate and deferred rate of 5.65% and 3.00%, respectively, at June 30, 2026 and the pay rate increases from time-to-time throughout the loan maturity. This loan was also modified to extend the weighted average term by 22.1 months.
(2)These loans were modified to reduce the interest rate to a weighted average rate of 5.72% at June 30, 2026, and to extend the weighted average term by 36.8 months. The interest rate on one of these loans with a UPB of $20.8 million increases from time-to-time throughout the loan maturity.
(3)This loan modification capitalized $1.2 million of unpaid interest and divided this loan into a $104.1 million tranche bearing interest at SOFR plus 3.00% and a $10.1 million tranche bearing interest at a fixed rate of 10.00%.
(4)The total UPB of these loan modifications were $386.1 million at June 30, 2026 and represented 3% of our Structured portfolio at June 30, 2026.
(5)Includes loans with a total UPB of $113.0 million, which were previously modified in prior years. Using the SOFR rate at June 30, 2026, such loans were modified from a weighted average pay rate and deferred rate of 6.65% and 1.25%, respectively, to a weighted average pay rate and deferred rate of 6.95% and 0.00%, respectively.
The following table represents the UPB of loan modifications, as of the modification date, made to borrowers experiencing financial difficulty during the six months ended June 30, 2026 (in thousands):
Asset ClassPayment Deferrals With/Without Term Extensions (1)Rate Reductions With/Without Term Extensions (2)Other (3)Total (4)(5)(6)
Multifamily$179,986 $457,317 $228,420 $865,723 
________________________
(1)These loans were modified to a weighted average pay rate and deferred rate of 4.69% and 2.81%, respectively, at June 30, 2026 and to extend the weighted average term by 23.5 months. These modifications also include loans with a total UPB of $78.3 million in which the pay rate increases from time-to-time throughout the loans' maturities.
(2)These loans were modified to reduce the interest rate to a weighted average pay rate and deferred rate of 5.52% and 0.46%, respectively, and to extend the weighted average term by 29.0 months.
(3)Loan modifications with a total UPB of $115.4 million included amending certain terms, such as reallocating and/or replenishment of reserves, providing for a temporary and conditional forbearance of foreclosure and temporarily delaying past due interest payments. A loan modification with a UPB of $113.0 million was modified to capitalize $1.2 million of unpaid interest and was divided into a $104.1 million tranche bearing interest at SOFR plus 3.00% and a $10.1 million tranche bearing interest at a fixed rate of 10.00%.
(4)The total UPB of the loan modifications made during the six months ended June 30, 2026 was $865.4 million at June 30, 2026 and represented 7% of our Structured portfolio at June 30, 2026.
(5)At June 30, 2026, modified loans with a UPB of $33.0 million have specific reserves totaling $1.0 million.
(6)Includes loans with a total UPB of $421.1 million, which were previously modified in prior years. Using the SOFR rate at June 30, 2026, these loans were modified from a weighted average pay rate and deferred rate of 5.67% and 2.01%, respectively, to a weighted average pay rate and deferred rate of 4.99% and 1.89%, respectively.
The following table represents the UPB of loan modifications, as of the modification date, made to borrowers experiencing financial difficulty during the three months ended June 30, 2025 ($ in thousands):
Asset ClassPayment Deferrals With/Without Term Extensions (1)Rate Reduction Without Term Extension (2)Total (3)(4)(5)
Multifamily$144,905 $107,000 $251,905 
________________________
(1)These loans were modified to a weighted average pay rate and deferred rate of 5.50% and 2.78%, respectively, at June 30, 2025. A portion of these loans with a total UPB of $116.5 million were also modified to extend the weighted average term by 19 months. These modifications also include loans with a total UPB of $38.1 million in which the pay rate increases from time-to-time throughout the loans' maturities.
(2)These loans were modified to reduce the interest rate to a weighted average pay rate and deferred rate of 5.97% and 0.56%, respectively, and to extend the weighted average term by 23 months.
(3)The total UPB of the loan modifications made during the three months ended June 30, 2025 was $249.9 million at June 30, 2025 and represented 2% of our Structured portfolio at June 30, 2025.
(4)At June 30, 2025, a modified loan with a UPB of $25.6 million has a specific reserve of $2.2 million.
(5)Includes loans with a total UPB of $136.1 million, which were previously modified in prior years. Using the SOFR rate at June 30, 2025, these loans were modified from a weighted average pay rate and deferred rate of 6.47% and 1.65%, respectively, to a weighted average pay rate and deferred rate of 5.18% and 2.28%, respectively.
The following table represents the UPB of loan modifications, as of the modification date, made to borrowers experiencing financial difficulty during the six months ended June 30, 2025 (in thousands):
Asset ClassPayment Deferrals With/Without Term Extensions (1)Rate Reductions With/Without Term Extensions (2)Other (3)Total (4)(5)(6)
Multifamily$994,270 $107,000 $83,975 $1,185,245 
Single-Family Rental— — 16,490 16,490 
Total UPB$994,270 $107,000 $100,465 $1,201,735 
________________________
(1)These loans were modified to a weighted average pay rate and deferred rate of 5.23% and 2.19%, respectively, at June 30, 2025. A portion of these loans with a total UPB of $225.2 million were also modified to extend the weighted average term by 19.3 months. These modifications also include loans with a total UPB of $508.4 million in which the pay rate increases from time-to-time throughout the loans' maturities.
(2)These loans were modified to reduce the interest rate to a weighted average pay rate and deferred rate of 5.97% and 0.56%, respectively, and to extend the weighted average term by 23 months.
(3)These loan modifications included amending certain terms, such as reallocating and/or replenishment of reserves, providing for a temporary and conditional forbearance of foreclosure and temporarily delaying past due interest payments.
(4)The total UPB of the loan modifications made during the six months ended June 30, 2025 was $1.20 billion at June 30, 2025 and represented 11% of our Structured portfolio at June 30, 2025.
(5)At June 30, 2025, modified loans with a UPB of $51.1 million have specific reserves totaling $7.4 million.
(6)Includes loans with a total UPB of $520.1 million, which were previously modified in prior years. Using the SOFR rate at June 30, 2025, these loans were modified from a weighted average pay rate and deferred rate of 6.71% and 1.25%, respectively, to a weighted average pay rate and deferred rate of 4.69% and 3.10%, respectively.