In July 2025, we acquired Fundamental by way of merger. As of June 30, 2026, Fundamental owned 527 single-tenant properties, spanning 16.9 million square feet across 44 states, 72 industries and 123 tenants. The properties, which consist of retail, industrial and service facilities, among others, are leased under 138 individual and master net operating lease agreements with a 16.8 year weighted-average lease base term. Fundamental had total gross properties and lease intangibles of $2.7 billion and debt of $1.7 billion as of June 30, 2026.

During the three months ended June 30, 2026, Fundamental acquired 16 additional net lease properties for $179.0 million and sold four properties subject to a single master lease for $2.3 million, resulting in an immaterial gain. During the six months ended June 30, 2026, Fundamental acquired 48 additional net lease properties for $308.6 million and sold 13 properties subject to two master leases for $24.7 million. Upon sale, we recognized a total net gain of $0.5 million, which is included within gain on sale of investments and other assets in our condensed consolidated statement of operations.

The Medical Office Portfolio is comprised of 34 medical office buildings acquired during the year ended December 31, 2016. These properties, which collectively comprise 1.9 million square feet, are geographically dispersed throughout the U.S. and primarily affiliated with major hospitals or located on or adjacent to major hospital campuses. The Medical Office Portfolio includes total gross properties and lease intangibles of $795.0 million and debt of $444.1 million as of June 30, 2026.

A vacant office building in Washington, D.C. was acquired in a loan foreclosure in May 2024 and transferred to our Property Segment with the expectation that we will convert it to multifamily use. That property has a carrying value of $123.1 million, of which $97.0 million represents construction in progress and $26.1 million represents land and land improvements, and no associated debt as of June 30, 2026.

During the three and six months ended June 30, 2026, $1.5 million and $1.9 million, respectively, of interest was capitalized for construction in progress related to the Fundamental and the D.C. Multifamily Conversion portfolios. No such interest was capitalized during the three and six months ended June 30, 2025.

The REIS Equity Portfolio is comprised of 4 commercial real estate properties and one equity interest in an unconsolidated real estate property (see Note 8), which were acquired from CMBS trusts over time. The REIS Equity Portfolio includes total gross properties and lease intangibles of $75.1 million and debt of $37.3 million as of June 30, 2026.

The Commercial and Residential Lending Segment Portfolio represents properties acquired through loan foreclosure or exercise of control over a mezzanine loan borrower’s pledged equity interests. This portfolio includes total gross properties and lease intangibles of $1.1 billion and debt of $29.8 million as of June 30, 2026.


	Depreciable Life	June 30, 2026		December 31, 2025
Property Segment
Land and land improvements	0 - 15 years	$	832,555	$	769,318
Buildings and building improvements	0 - 40 years	2,199,306		1,978,498
Construction in progress	N/A	163,539		138,069
Furniture & fixtures	3 - 5 years	1,456		1,451
Investing and Servicing Segment
Land and land improvements	0 - 15 years	11,916		16,567
Buildings and building improvements	3 - 33 years	45,762		49,719
Furniture & fixtures	1 - 5 years	2,344		2,328
Commercial and Residential Lending Segment
Land and land improvements	0 - 13 years	184,276		143,090
Buildings and building improvements	30 - 50 years	616,246		356,440
Construction in progress	N/A	238,145		245,794
Furniture & fixtures	5 - 7 years	12,323		2,003
Properties, cost		4,307,868		3,703,277
Less: accumulated depreciation		(309,199)		(254,625)
Properties, net		$	3,998,669	$	3,448,652

During the three and six months ended June 30, 2026, we sold two units in a residential conversion project in New York for $11.5 million. In connection with these sales, there was no gain or loss recognized in our condensed consolidated statements of operations.

During the six months ended June 30, 2026, we sold a multifamily property in Conyers, Georgia for $40.0 million, which qualified for sale accounting treatment under GAAP. The property had been acquired through foreclosure in February 2025 and during that year we recorded a $4.0 million impairment on the property. Upon sale, we recognized a net gain of $0.3 million, which is included within gain on sale of investments and other assets in our condensed consolidated statement of operations for the six months ended June 30, 2026. In connection therewith, we provided $32.0 million of three-year senior secured financing to the purchaser.

During the three and six months ended June 30, 2025, we sold an office building in Texas for $60.0 million, which had been acquired via equity control of the related mezzanine borrower entity in May 2022. In 2023, we recorded a $30.1 million impairment on the property. Upon sale, we recognized a net gain of $4.1 million in our condensed consolidated statements of operations, representing: (i) forgiveness of debt totaling $23.5 million, which is reflected as gain on extinguishment of debt, offset by (ii) the excess of our carrying value over sales proceeds of $19.4 million, which is reflected within gain on sale of investments and other assets in our condensed consolidated statements of operations.

During the three and six months ended June 30, 2025, we also sold a multifamily property for $54.5 million which did not qualify for sale accounting treatment under GAAP. In connection therewith, we provided $45.8 million of three-year senior secured financing to the purchaser, along with an up to $6.0 million unfunded commitment for future property improvements during the loan term. Such sale will be recognized under GAAP if and when collection of the financed amount becomes probable. In the meantime, the $52.9 million net carrying value of the property as of June 30, 2026 remains within properties on our condensed consolidated balance sheet and the initial down payment of $8.9 million and subsequent interest payments of $1.3 million received from the purchaser are recorded as a deposit liability within accounts payable, accrued expenses and other liabilities on our condensed consolidated balance sheet as of June 30, 2026.

During the three and six months ended June 30, 2026, we sold a hospitality asset in New York City for $13.1 million. The property had been acquired through foreclosure in June 2024 after our Investing and Servicing segment acquired the loan as nonperforming in October 2021. In connection with this sale, we recognized a gain of $2.3 million within gain on sale of investments and other assets in our condensed consolidated statement of operations.