4. Debt Security Investment

Our investment in a commercial mortgage-backed debt security, or debt security, bears an interest rate on the stated principal amount thereof equal to 4.24% per annum, the terms of which security provide for monthly interest-only payments. The debt security was issued by an unaffiliated mortgage trust and represented an approximate 10% beneficial ownership interest in such mortgage trust. The debt security is subordinate to all other interests in the mortgage trust and is not guaranteed by a government-sponsored entity. The debt security matures on January 1, 2028, at an aggregate stated amount of $93,433,000.

As of June 30, 2026 and December 31, 2025, the carrying amount of the debt security investment was $92,463,000 and $92,136,000, respectively, net of unamortized closing costs of $70,000 and $93,000, respectively. Accretion on the debt security for the three months ended June 30, 2026 and 2025 was $171,000 and $163,000, respectively, and for the six months ended June 30, 2026 and 2025 was $351,000 and $634,000, respectively, which is recorded as an increase to real estate revenue in our accompanying condensed consolidated statements of operations and comprehensive income. Amortization expense of closing costs for both the three months ended June 30, 2026 and 2025 was $12,000, and for the six months ended June 30, 2026 and 2025 was $24,000 and $49,000, respectively, which is recorded as a decrease to real estate revenue in our accompanying condensed consolidated statements of operations and comprehensive income. We evaluated credit quality indicators such as the agency ratings and the underlying collateral of such investment in order to determine expected future credit loss. No credit loss was recorded for the three and six months ended June 30, 2026 and 2025.