v3.26.1
Real Estate Owned
 6 Months Ended
Jun. 30, 2026
Real Estate [Abstract]  
Real Estate Owned Real Estate Owned
As of June 30, 2026, the Company held assets and liabilities related to two real estate owned, or REO, office properties: one property classified as REO, held-for-sale located in Miami Beach, FL, and one property classified as REO, held-for-investment, net located in Maynard, MA.
The following table presents the REO held-for-investment assets and liabilities included in our condensed consolidated balance sheets:
(in thousands)June 30,
2026		December 31,
2025
Building and building improvements
$23,390 $86,350 
Land and land improvements
10,374 10,396 
Accumulated Depreciation
(3,780)(4,707)
Real estate owned, net$29,984 $92,039 
Intangible real estate assets
$11,750 $18,909 
Accumulated amortization
(5,861)(5,615)
Intangible real estate assets, net(1)
$5,889 $13,294 
Lease liability
$— $(7,239)
Intangible real estate liabilities
(146)(195)
Accumulated amortization
53 61 
Real estate liabilities, net(2)
$(93)$(7,373)
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(1)Included in “Other assets” on the condensed consolidated balance sheets.
(2)Included in “Other liabilities” on the condensed consolidated balance sheets.
During the three months ended June 30, 2026, the Company determined the Miami Beach, FL, office real estate owned asset met the held-for-sale criteria. Accordingly, the Company estimated a fair value of $54.9 million and recorded a $6.1 million impairment loss on real estate owned and is presented net on the consolidated balance sheets within real estate owned assets, held-for-sale. The estimated fair value of the collateral was determined by the estimated proceeds from the sale of the property, less costs to sell. The corresponding assets and liabilities have been reclassified to real estate owned assets, held-for-sale and real estate owned liabilities, held-for-sale on the Company’s condensed consolidated balance sheets. The anticipated sale does not reflect a strategic shift and therefore does not qualify for presentation as a discontinued operation.
The following table presents the REO operations and related income (loss) included in the Company’s condensed consolidated statements of comprehensive (loss) income for the three and six months ended June 30, 2026, and 2025:
(in thousands)Three Months Ended June 30,Six Months Ended June 30,
Real Estate Owned, Net2026202520262025
Rental income
Minimum lease payments$2,059 $2,450 $4,173 $4,679 
Variable lease payments857 919 1,649 1,726 
Total rental income2,916 3,369 5,822 6,405 
Other operating income571 384 885 442 
Revenue from real estate owned operations3,487 3,753 6,707 6,847 
Expenses from real estate owned operations (1)
(5,273)(5,227)(11,033)(9,731)
Total$(1,786)$(1,474)$(4,326)$(2,884)
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(1) Includes $(2.0) million and $(4.0) million and $(2.1) million and $(3.5) million of depreciation and amortization for the three and six months ended June 30, 2026, and 2025, respectively.
The following table presents the amortization of REO, held-for-investment, net lease intangibles included in the Company’s condensed consolidated statements of comprehensive (loss) income for the three and six months ended June 30, 2026, and 2025:
(in thousands)Three Months Ended June 30,Six Months Ended June 30,
Income Statement Location2026202520262025
Asset
In-place lease intangiblesExpenses from real estate owned operations$733 $944 $1,511 $1,679 
Lease commissionsExpenses from real estate owned operations115 74 220 135 
Above-market lease intangiblesRevenue from real estate owned operations(55)(78)(112)(148)
Liability
Below-market lease intangiblesRevenue from real estate owned operations14 13 28 21 
The following table presents the amortization of lease intangibles related to REO, held-for-investment, net for each of the succeeding fiscal years:
(in thousands)In-place Lease Intangible AssetsAbove-market Lease Intangible AssetsLease CommissionsBelow-market Lease Intangible Liabilities
2026$566 $42 $229 $(13)
2027801 35 459 (27)
2028775 23 443 (27)
2029766 15 437 (26)
2030342 — 297 — 
Thereafter189 — 470 — 
The weighted average remaining amortization period for the in-place lease intangibles, above-market lease intangibles, leasing commissions and below-market lease intangibles related to REO, held-for-investment, net as of June 30, 2026, were 4.2 years, 2.3 years, 5.7 years and 3.5 years, respectively.
Future Minimum Lease Payments
The following table presents the future minimum lease payments to be collected under non-cancelable operating leases, excluding tenant reimbursements of expenses, as of June 30, 2026:
(in thousands)Contractual Lease Payments
2026$3,831 
20278,056 
20288,001 
20297,832 
20304,845 
Thereafter7,891 
The weighted average minimum remaining term of the non-cancelable leases was approximately 4.6 years as of June 30, 2026.