v3.26.1
Collateralized Loan Obligations
 6 Months Ended
Jun. 30, 2026
Transfers and Servicing [Abstract]  
Collateralized Loan Obligations Collateralized Loan Obligations
The table below summarizes our collateralized loan obligations as of June 30, 2026:
FacilityCollateral
$ in thousandsTerm
Weighted Average Interest Rate(1)
Amount OutstandingFair ValueCountPrincipal Balance OutstandingFair Value
INCREF 2026-FL2Dec 20435.27%$1,088,692 $1,088,692 35$1,146,226 $1,146,226 
INCREF 2025-FL1Oct 20425.67%1,040,842 1,038,102 271,084,546 1,082,244 
Total$2,129,534 $2,126,794 62$2,230,772 $2,228,470 
(1)Represents the weighted average interest rate in effect as of June 30, 2026.
The table below summarizes our collateralized loan obligations as of December 31, 2025:
FacilityCollateral
$ in thousandsTerm
Weighted Average Interest Rate(1)
Amount OutstandingFair ValueCountPrincipal Balance OutstandingFair Value
INCREF 2025-FL1Oct 20425.71%$998,234 $1,005,157 30 $1,217,359 $1,224,656 
Total$998,234 $1,005,157 30$1,217,359 $1,224,656 
(1)Represents the weighted average interest rate in effect as of December 31, 2025.
In June 2026, the Company financed a pool of loans and loan participations from its existing loan portfolio through INCREF 2026-FL2, contributing $1.1 billion of commercial real estate loan investments to INCREF 2026-FL2 and issuing $1.2 billion of notes. The Company retained $150.2 million of the notes issued by INCREF 2026-FL2. The rated notes bear interest at Term SOFR plus a spread. The collateralized loan obligations execution provides the Company with match-term financing on a non-mark-to-market and non-recourse basis. The third-party notes were issued at par, with the Company receiving $1.1 billion in proceeds from the transaction.
In May 2025, the Company financed a pool of loans and loan participations from its existing loan portfolio through INCREF 2025-FL1, contributing $1.2 billion of commercial real estate loan investments to INCREF 2025-FL1 and issuing $1.2 billion of notes. The Company currently retains $176.5 million of the notes issued by INCREF 2025-FL1. The rated notes bear interest at Term SOFR plus a spread. The collateralized loan obligations execution provides the Company with match-term financing on a non-mark-to-market and non-recourse basis. The third-party notes were issued at a discount of $2.5 million, with the Company receiving $995.7 million in proceeds from the transaction.
INCREF 2026-FL2 and INCREF 2025-FL1 are each a VIE primarily because the unrelated investors do not have substantive voting or participating rights. To assess whether the Company has the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, the Company considered, among other factors, its role in establishing the VIE and its ongoing rights and responsibilities. We determined that we are the primary beneficiary as (1) we have the power to direct activities of the VIE that most significantly impact the VIE’s economic performance, and (2) through our retained interests, we have the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. The Company considers its variable interests, as well as any variable interests of its related parties in making this determination. The majority of the operations of the VIE are funded with cash flows generated from the loans within the VIE. Assets held by the VIE can be used only to settle obligations of the VIE. The liabilities of the VIE are non-recourse to us and can only be satisfied from the assets of the VIE. We are not obligated to provide, have not provided, and do not intend to provide material financial support to the consolidated VIE.
The consolidation of the CLO Issuers results in an increase in our gross assets, liabilities, revenues and expenses. The net impact to our equity relates to our retained economic interests in the VIE, which are eliminated upon consolidation. During the three and six months ended June 30, 2026, we recorded $16.7 million and $31.3 million, respectively, of interest expense related to the CLO Issuers. During the three and six months ended June 30, 2025, we recorded $9.8 million of interest expense related to INCREF 2025-FL1.
The following table details the assets and liabilities of INCREF 2026-FL2:

$ in thousandsJune 30, 2026
Assets:
Restricted cash$101,363 
Commercial real estate loan investments, at fair value1,146,226 
Interest receivable3,327 
Total assets$1,250,916 
Liabilities:
Collateralized loan obligations, at fair value$1,088,692 
Interest payable2,390 
Total liabilities$1,091,082 
Restricted cash primarily represents proceeds the Company is required to invest in eligible collateral. We intend to complete our investment in the third quarter of 2026.

The following table details the assets and liabilities of INCREF 2025-FL1:
$ in thousandsJune 30, 2026December 31, 2025
Assets:
Restricted cash$1,750 $150 
Commercial real estate loan investments, at fair value1,082,244 1,224,656 
Interest receivable3,147 3,840 
Other assets131,888 — 
Total assets$1,219,029 $1,228,646 
Liabilities:
Collateralized loan obligations, at fair value$1,038,102 $1,005,157 
Interest payable1,969 2,057 
Total liabilities$1,040,071 $1,007,214