v3.26.1
Borrowings
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Borrowings Borrowings
The table below summarizes our borrowing arrangements as of June 30, 2026 and December 31, 2025. Our borrowing arrangements include our secured financing facilities and a revolving credit facility.
June 30, 2026December 31, 2025
$ in thousandsCurrent Maturity
Extension Options(1)
Weighted Average Interest Rate(2)
Maximum Facility SizeAvailable CapacityAmount OutstandingFair ValueAmount OutstandingFair Value
Term Lending Agreements
INCREF Lending IIMatch-termMatch-term5.94%$300,000 $144,319 $155,681 $155,681 $155,027 $155,033 
INCREF Lending IIIMatch-termMatch-term5.17%72,840 4,840 68,000 68,000 $68,000 $68,000 
Secured Lending Agreements
Repurchase Agreements
Morgan Stanley Bank(3)
Dec 2027Dec 20285.17%750,000 375,822 374,178 374,184 713,335 713,335 
CitibankJun 2028Jun 20305.07%1,300,000 604,347 695,653 695,678 590,301 590,401 
Barclays(3)
Apr 2027Apr 20295.11%500,000 153,732 346,268 346,040 328,897 328,897 
Wells Fargo(3)
Mar 2028Mar 20314.84%1,200,000 459,660 740,340 740,352 340,663 340,664 
Bank of Montreal(3)
Jul 2027Jul 20304.93%256,600 32,600 224,000 224,000 256,600 256,600 
INCREF Repurchase I(3)
Feb 2027Feb 20304.94%250,000 163,542 86,458 86,459 129,589 129,646 
INCREF Repurchase IIFeb 2029Feb 20295.05%250,000 132,992 117,008 117,061 N/AN/A
Total secured financing facilities$4,879,440 $2,071,854 $2,807,586 $2,807,455 $2,582,412 $2,582,576 
Revolving Credit Facility(4)
May 2028May 20296.90%$100,000 $— $100,000 $100,000 $55,000 $55,000 
(1)Assumes all available extension options are exercised.
(2)Represents the weighted average interest rate in effect as of June 30, 2026.
(3)Certain extension options for these facilities are subject to lender approval and compliance with certain financial and administrative covenants.
(4)A new revolving credit facility was entered into on May 7, 2026, resulting in the termination of the prior credit facility.
Borrowings denominated in U.S. dollars under our secured financing facilities and revolving credit facility bear interest at one-month Term SOFR plus a spread. Euro denominated borrowings bear interest at three-month Euribor plus a spread, and our British pound sterling denominated borrowings bear interest at three-month SONIA plus a spread. Our secured financing facilities are subject to certain non-financial and financial covenants, including liquidity, tangible net worth and leverage covenants. We were in compliance with these covenants as of June 30, 2026.
Term Lending Agreements
INCREF Lending II and INCREF Lending III provide asset-based financing on a non-mark-to-market basis with partial recourse to the Company and match-term to the underlying loans. We have pledged certain commercial real estate loan investments with a fair value of approximately $200.0 million and $85.3 million as collateral for INCREF Lending II and INCREF Lending III, respectively. We segregate the commercial real estate loans that we have pledged as collateral in our books and records. Our term lending agreement counterparties have the right to resell or repledge the collateral posted but have the obligation to return the pledged collateral upon maturity of the term lending agreement.
Secured Lending Agreements
In February 2026, we entered into a $250.0 million Master Repurchase Agreement with a financial institution (“INCREF Repurchase II”) that provides asset-based financing with partial recourse to the Company. We have pledged certain commercial real estate loan investments with a fair value of approximately $146.3 million as collateral for INCREF Repurchase II.
We have entered into traditional repurchase agreements with seven financial institutions, as detailed in the table above. We have pledged certain commercial real estate loan investments with a fair value of approximately $3.2 billion as collateral for these agreements. Certain borrowings under our Citibank repurchase agreement are collateralized by European commercial real estate loans. The borrowings are denominated in Euros and British pound sterling and have a fair value of €189.4 million and £192.8 million, respectively, as of June 30, 2026. In March 2026, we added Euro capacity of €123.0 million and British pound sterling capacity of £255.4 million and upsized the U.S. dollar capacity to $700.0 million under our Wells Fargo repurchase agreement, resulting in a total facility size of $1.2 billion. Certain borrowings under our Wells Fargo agreement are collateralized by European commercial real estate loans, denominated in Euros and British pound sterling, and have a fair value of €123.0 million and £248.3 million, respectively, as of June 30, 2026. In June 2026, we extended the current maturity of the
Citibank facility to June 2028 and upsized the capacity by $300.0 million to a total capacity of $1.3 billion. We segregate the commercial real estate loans that we have pledged as collateral in our books and records. Our repurchase agreement counterparties have the right to resell or repledge the collateral posted but have the obligation to return the pledged collateral upon maturity of the repurchase agreement.
We were not required to post any margin under our master repurchase agreements as of June 30, 2026 and December 31, 2025. A margin deficiency may generally result from either a decline in the underlying loan’s market value or a shortfall in operating performance of the property. We may finance multiple commercial loan investments under a repurchase agreement; therefore, a margin excess in one asset could help mitigate a margin deficiency in another asset under the same repurchase agreement. We intend to maintain a level of liquidity that will enable us to meet margin calls. Master repurchase agreements are recourse obligations.
Counterparty Exposure
We have pledged certain commercial real estate loan investments as collateral for our secured financing facilities. If a secured financing counterparty were to default on its obligation to return the collateral, we would be exposed to potential losses to the extent the fair value of the collateral that we have pledged to the counterparty exceeded the amount loaned to us plus interest due to the counterparty. The following table summarizes our net exposure with those counterparties where the amount at risk exceeded 10.0% of equity as of June 30, 2026 and December 31, 2025.
$ in thousandsOutstanding PrincipalNet Counterparty Exposure
Weighted Average Life (Years)(1)
June 30, 2026
Wells Fargo$740,340 $196,267 2.90
Citibank695,653 175,145 3.07
Total$1,435,993 $371,412 2.98
December 31, 2025
Morgan Stanley Bank$713,335 $186,066 2.92
Citibank590,301 148,674 3.56
Bank of Montreal411,627 107,463 4.18
Total$1,715,263 $442,203 3.45
(1)Assumes all extension options are exercised for borrowing facilities that may be extended at our option, subject to compliance with certain financial and administrative covenants.
The following table shows the aggregate amount of maturities of our outstanding borrowings over the next five years and thereafter as of June 30, 2026:
$ in thousands
Secured Lending Agreements(1)
Term Lending Agreements(1)
Revolving Credit Facility(1)
Total
Year
2026 (remaining)$— $— $— $— 
2027— — — — 
2028374,178 — — 374,178 
2029463,276 128,442 100,000 691,718 
20301,006,111 95,239 — 1,101,350 
2031740,340 — — 740,340 
Thereafter— — — — 
Total$2,583,905 $223,681 $100,000 $2,907,586 
(1)Assumes all extension options are exercised for borrowing facilities that may be extended at our option, subject to compliance with certain financial and administrative covenants.
Revolving Credit Facilities
Our prior revolving credit facility was secured by uncalled capital subscriptions under the terms of the Invesco Subscription Agreement, as described in Note 11 — “Redeemable Common Stock - Related Party”. Borrowings under the facility bore interest at one-month Term SOFR or the prime rate plus a spread. The revolving credit facility allowed for the ability to obtain tranches of term financing in addition to general borrowings under an Uncommitted Tranche (as defined in the credit agreement). The Uncommitted Tranche was due on demand (15 business days after notice); any Funded Tranche (as defined in
the credit agreement) was due no later than (a) three years from issuance or (b) 360 days after notice; and all amounts outstanding under the facility were due 30 days prior to the last date on which capital calls were issued. The facility was prepayable without penalty.
On May 7, 2026, the Operating Partnership (the “Initial Borrower”) entered into a Revolving Credit Agreement with NatWest Markets PLC (“NatWest” or the “Credit Agreement”), as lender, lead arranger, and administrative agent. The Credit Agreement provides for a two‑tranche revolving credit facility consisting of (i) a Tranche A facility with no initial committed amount and (ii) a $100.0 million Tranche B facility.
Tranche A, if and when activated, provides for a revolving line of credit denominated in U.S. dollars bearing interest at Term SOFR plus 1.90% and maturing in January 2028. Tranche B provides for a revolving line of credit denominated in U.S. dollars, Euros, or British pound sterling bearing interest at the applicable benchmark rate plus a margin ranging from 2.75% to 3.25%, depending on the advance rate elected, and maturing in May 2028 following the closing date. Unused commitments under Tranche A and Tranche B are subject to a commitment fee of 0.25% per annum and 1.00% per annum, respectively. The Company incurred an arranger fee equal to 0.50% of the Tranche B facility commitment.
The Credit Agreement includes an accordion feature permitting aggregate commitments to be increased up to a maximum of $330.0 million, with Tranche A not exceeding $150.0 million and Tranche B not exceeding $330.0 million, in each case subject to lender consent. Maturity dates may also be extended by up to twelve months with lender approval. Tranche A availability, if increased from zero, would be based on unfunded capital commitments of the included investors, while Tranche B availability is based on the net asset value of the Company’s eligible portfolio investments plus secured cash collateral. Borrowings are secured by a first‑priority lien on certain collateral accounts, and the Company has provided a full and unconditional guaranty of the Initial Borrower’s obligations.
The Credit Agreement contains customary representations, warranties, and covenants, including financial covenants requiring a minimum adjusted tangible net worth, a minimum interest coverage ratio, minimum liquidity of the Initial Borrower based on net asset value, and a minimum fair value‑to‑cost ratio. We were in compliance with these covenants as of June 30, 2026.
In connection with the closing of our Revolving Credit Agreement with NatWest, the Company’s prior credit agreement was terminated, and all related liens were released.