v3.26.1
Loans Held-for-Investment, Net of Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Schedule of Loans Held-for-Investment
The following tables summarize the Company’s loans held-for-investment by asset type, property type and geographic location as of June 30, 2026, and December 31, 2025:
June 30, 2026
(dollars in thousands)
Senior
Loans(1)
Unpaid principal balance$1,393,104 
Unamortized net deferred origination fees
(3,724)
Allowance for credit losses(163,484)
Carrying value$1,225,896 
Unfunded commitments$57,169 
Number of loans38 
Weighted average coupon(2)
5.4%
Weighted average years to maturity(3)
0.4
December 31, 2025
(dollars in thousands)
Senior
Loans(1)
B-Notes(4)
Total
Unpaid principal balance$1,677,017 $12,950 $1,689,967 
Unamortized net deferred origination fees
(6,323)— (6,323)
Allowance for credit losses(145,891)(21)(145,912)
Carrying value$1,524,803 $12,929 $1,537,732 
Unfunded commitments$77,399 $— $77,399 
Number of loans42 1 43 
Weighted average coupon(2)
6.2%8.0%6.2%
Weighted average years to maturity(3)
0.51.10.5
______________________
(1)Loans primarily secured by a first priority lien on commercial real property and related personal property and also includes, when applicable, any companion subordinate loans or other investments.
(2)Weighted average coupon inclusive of the impact of nonaccrual loans.
(3)Based on contractual maturity date, including maturity defaulted loans with no remaining term. Certain loans are subject to contractual extension options with such conditions stipulated in the applicable loan documents. Actual maturities may differ from contractual maturities stated herein as certain borrowers may have the right to prepay with or without paying a prepayment fee. The Company may also extend contractual maturities in connection with certain loan modifications.
(4)A subordinate loan secured by the same mortgage as the senior loan.
Schedule of Loans Held-for-Investment by Property Type
(dollars in thousands)June 30, 2026December 31, 2025
Property TypeCarrying Value% of Loan PortfolioCarrying Value% of Loan Portfolio
Office$595,333 48.6%$670,061 43.6%
Multifamily374,854 30.6%480,737 31.3%
Hotel84,995 6.9%106,208 6.9%
Retail15,214 1.2%126,757 8.2%
Industrial114,007 9.3%113,791 7.4%
Other41,493 3.4%40,178 2.6%
Total$1,225,896 100.0%$1,537,732 100.0%
Schedule of Loans Held-for-Investment by Geographic Location
(dollars in thousands)June 30, 2026December 31, 2025
Geographic LocationCarrying Value% of Loan PortfolioCarrying Value% of Loan Portfolio
Northeast$342,663 28.0%$384,371 25.0%
Southwest330,010 26.9%330,382 21.5%
West117,619 9.6%233,741 15.2%
Midwest108,208 8.8%259,115 16.9%
Southeast327,396 26.7%330,123 21.4%
Total$1,225,896 100.0%$1,537,732 100.0%
Schedule of Loan Portfolio Activity
The following tables summarize activity related to loans held-for-investment, net of allowance for credit losses, for the three and six months ended June 30, 2026, and 2025:
Three Months Ended June 30, 2026Six Months Ended June 30, 2026
(in thousands)Amortized CostAllowance for Credit LossesCarrying ValueAmortized CostAllowance for Credit LossesCarrying Value
Balance at beginning of period$1,510,097 $(147,298)$1,362,799 $1,683,644 $(145,912)$1,537,732 
Originations, additional fundings, upsizing of loans and capitalized deferred interest(1)
7,997 — 7,997 22,276 — 22,276 
Repayments(99,960)— (99,960)(276,441)— (276,441)
Transfers to loans held-for-sale, net of discount at time of transfer— — — (12,873)— (12,873)
Increase from net deferred fees373 — 373 245 — 245 
Amortization of net deferred fees533 — 533 2,189 — 2,189 
Provision for credit losses— (45,846)(45,846)— (46,932)(46,932)
Write-offs(29,660)29,660 — (29,660)29,660 — 
Recoveries of previous write-offs— — — — (300)(300)
Balance at end of period$1,389,380 $(163,484)$1,225,896 $1,389,380 $(163,484)$1,225,896 
Three Months Ended June 30, 2025Six Months Ended June 30, 2025
(in thousands)Amortized CostAllowance for Credit LossesCarrying ValueAmortized CostAllowance for Credit LossesCarrying Value
Balance at beginning of period$1,937,659 $(177,282)$1,760,377 $2,097,375 $(199,727)$1,897,648 
Originations, additional fundings, upsizing of loans and capitalized deferred interest(2)
13,519 — 13,519 23,994 — 23,994 
Repayments(93,172)— (93,172)(176,953)— (176,953)
Transfers to real estate owned(3)
— — — (63,353)— (63,353)
Transfers in from loan related receivables(4)
567 — 567 567 — 567 
Decrease from net deferred fees(254)— (254)(583)— (583)
Amortization of net deferred fees1,034 — 1,034 2,944 — 2,944 
Provision for credit losses— (10,760)(10,760)— (12,953)(12,953)
Write-offs(36,074)36,074 — (60,712)60,712 — 
Balance at end of period$1,823,279 $(151,968)$1,671,311 $1,823,279 $(151,968)$1,671,311 
______________________
(1)Includes fundings of $2.3 million and $3.8 million of other investments classified as loans held-for-investment during the three and six months ended June 30, 2026.
(2)Includes a $1.7 million unsecured note advance to an existing borrower during the six months ended June 30, 2025.
(3)Total transfers to real estate owned of $71.0 million comprised of $63.4 million of loans held-for-investment and $7.6 million in related receivables.
(4)Transfers in from loan related receivables of $0.6 million included in write-offs during the three and six months ended June 30, 2025.
Schedule of Allowance for Credit Losses
The following table presents the changes for the three and six months ended June 30, 2026, and 2025 in the allowance for credit losses on loans held-for-investment:
Loans Held-for-Investment
Unfunded Loan Commitments(1)
Specific ReserveGeneral ReserveTotal Specific and General ReserveTotal General ReserveTotal Allowance for Credit Losses
Three Months Ended June 30, 2026
Balance at beginning of period$119,635 $27,663 $147,298 $1,215 $148,513 
Provision for credit losses40,184 5,662 45,846 1,135 46,981 
Write-off(29,660)— (29,660)— (29,660)
Balance at end of period$130,159 $33,325 $163,484 $2,350 $165,834 
Six Months Ended June 30, 2026
Balance at beginning of period$104,466 $41,446 $145,912 $2,517 $148,429 
Provision for (benefit from) credit losses
55,053 (8,121)46,932 (167)46,765 
Write-off(29,660)— (29,660)— (29,660)
Recoveries of previous write-offs300 — 300 — 300 
Balance at end of period$130,159 $33,325 $163,484 $2,350 $165,834 
Three Months Ended June 30, 2025
Balance at beginning of period$134,253 $43,029 $177,282 $2,880 $180,162 
Provision for (benefit from) credit losses(638)11,398 10,760 224 10,984 
Write-off(36,074)— (36,074)— (36,074)
Balance at end of period$97,541 $54,427 $151,968 $3,104 $155,072 
Six Months Ended June 30, 2025
Balance at beginning of period$154,687 $45,040 $199,727 $1,303 $201,030 
Provision for credit losses3,566 9,387 12,953 1,801 14,754 
Write-off(60,712)— (60,712)— (60,712)
Balance at end of period$97,541 $54,427 $151,968 $3,104 $155,072 
______________________
(1)The current expected credit loss, or CECL, reserve for unfunded commitments is included in “Other liabilities” on the condensed consolidated balance sheets.
Schedule of Loans Held-for-Investment on Nonaccrual
The following table presents the changes in the amortized cost of loans held-for-investment on nonaccrual status for the three and six months ended June 30, 2026, and 2025:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2026202520262025
Nonaccrual loan amortized cost at beginning of period $343,219 $354,711 $277,496 $453,052 
Addition of nonaccrual loan amortized cost67,706 — 133,579 — 
Reduction of nonaccrual loan amortized cost(77,382)(132,130)(77,532)(230,471)
Nonaccrual loan amortized cost at end of period$333,543 $222,581 $333,543 $222,581 
Schedule of Loans Held-for-Investment by Internal Risk Rating
The following table presents the number of loans, unpaid principal balance and carrying value by risk rating for loans held-for-investment as of June 30, 2026, and December 31, 2025:
(dollars in thousands)June 30, 2026December 31, 2025
Risk RatingNumber of LoansUnpaid Principal BalanceCarrying ValueNumber of LoansUnpaid Principal BalanceCarrying Value
14 $105,341 $104,808 7 $293,896 $292,614 
27 209,947 208,497 8 268,935 265,628 
316 606,691 588,391 20 706,363 676,253 
46 218,181 191,416 4 172,086 159,618 
55 252,944 132,784 4 248,687 143,619 
Total38 $1,393,104 $1,225,896 43 $1,689,967 $1,537,732 
The following tables present the carrying value of loans held-for-investment as of June 30, 2026, and December 31, 2025, by risk rating and year of origination:
June 30, 2026
(dollars in thousands)Origination Year
Risk Rating20262025202420232022PriorTotal
1$— $— $— $— $46,558 $58,250 $104,808 
2— — — — 68,386 140,111 208,497 
3— — — — 107,436 480,955 588,391 
4— — — — — 191,416 191,416 
5— — — 32,069 31,218 69,497 132,784 
Total$— $— $— $32,069 $253,598 $940,229 $1,225,896 
Gross write-offs$— $— $— $— $— $(29,660)$(29,660)
December 31, 2025
(dollars in thousands)Origination Year
Risk Rating20252024202320222021PriorTotal
1$— $— $— $113,678 $37,477 $141,459 $292,614 
2— — — 113,940 151,688 — 265,628 
3— — 54,844 60,395 161,020 399,994 676,253 
4— — — — 62,556 97,062 159,618 
5— — — 34,818 — 108,801 143,619 
Total$— $— $54,844 $322,831 $412,741 $747,316 $1,537,732 
Gross write-offs$— $— $— $— $(15,361)$(65,137)$(80,498)