Fair Value of Financial Instruments (Tables)
|
6 Months Ended |
Jun. 30, 2026 |
|---|
| Fair Value Disclosures [Abstract] |
|
| Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis |
The following tables detail our financial instruments measured at fair value on a recurring basis: | | | | | | | | | | | | | | | | | | | | | | | | | As of June 30, 2026 | | Fair Value Measurements Using: | | | | $ in thousands | Level 1 | | Level 2 | | Level 3 | | Total at Fair Value | | Assets: | | | | | | | | | Commercial real estate loan investments | $ | — | | | $ | 1,146,226 | | | $ | 4,916,716 | | | $ | 6,062,942 | | | Real estate-related securities | — | | | 19,404 | | | — | | | 19,404 | | | Derivative assets | — | | | 5,731 | | | — | | | 5,731 | | | Total assets | $ | — | | | $ | 1,171,361 | | | $ | 4,916,716 | | | $ | 6,088,077 | | | | | | | | | | | Liabilities: | | | | | | | | | Secured lending agreements | $ | — | | | $ | — | | | $ | 2,583,774 | | | $ | 2,583,774 | | | Term lending agreements | — | | | — | | | 223,681 | | | 223,681 | | | Revolving credit facility | — | | | — | | | 100,000 | | | 100,000 | | | Collateralized loan obligations | — | | | 2,126,794 | | | — | | | 2,126,794 | | | Derivative liabilities | — | | | 777 | | | — | | | 777 | | | Total liabilities | $ | — | | | $ | 2,127,571 | | | $ | 2,907,455 | | | $ | 5,035,026 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | As of December 31, 2025 | | Fair Value Measurements Using: | | | | $ in thousands | Level 1 | | Level 2 | | Level 3 | | Total at Fair Value | | Assets: | | | | | | | | | Commercial real estate loan investments | $ | — | | | $ | — | | | $ | 4,702,728 | | | $ | 4,702,728 | | | Real estate-related securities | — | | | 14,818 | | | — | | | 14,818 | | | Derivative assets | — | | | 615 | | | — | | | 615 | | | Total assets | $ | — | | | $ | 15,433 | | | $ | 4,702,728 | | | $ | 4,718,161 | | | | | | | | | | | Liabilities: | | | | | | | | | Secured lending agreements | $ | — | | | $ | — | | | $ | 2,359,543 | | | $ | 2,359,543 | | | Term lending agreements | — | | | — | | | 223,033 | | | 223,033 | | | Revolving credit facility | — | | | — | | | 55,000 | | | 55,000 | | | Collateralized loan obligations | — | | | 1,005,157 | | | — | | | 1,005,157 | | | Derivative liabilities | — | | | 1,992 | | | — | | | 1,992 | | | Total liabilities | $ | — | | | $ | 1,007,149 | | | $ | 2,637,576 | | | $ | 3,644,725 | |
|
| Schedule Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation |
The following table shows a reconciliation of the beginning and ending fair value measurements of our commercial real estate loan investments classified as Level 3: | | | | | | | | | | | | | | | $ in thousands | Three Months Ended June 30, 2026 | | Six Months Ended June 30, 2026 | | | | Beginning Balance | $ | 5,200,218 | | | $ | 4,702,728 | | | | | Transfers from Level 3 into Level 2 | (1,146,226) | | | (1,146,226) | | | | | Loan originations and fundings | 1,203,135 | | | 1,798,736 | | | | | Loan principal payments | (320,753) | | | (402,633) | | | | | Net unrealized gain (loss) | (9,275) | | | (9,877) | | | | | Net realized gain (loss) | (60) | | | (60) | | | | | Foreign currency adjustments | (10,323) | | | (25,952) | | | | | Ending Balance | $ | 4,916,716 | | | $ | 4,916,716 | | | |
|
| Schedule of Fair Value Measurement Inputs and Valuation Techniques |
The following tables summarize the significant unobservable inputs supporting the fair value measurement of our investments in commercial loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ in thousands | | June 30, 2026 | | Type | | Fair Value(2) | | Valuation Technique | | Unobservable Input | | Weighted Average Rate(2) | | Range | | Weighted Average Life (years)(1)(2) | | Commercial loans | | $ | 3,915,526 | | | Discounted cash flow | | Discount rate | | 6.11% | | 4.83% - 11.12% | | 0.30 |
(1)Based on expected cash flows and potential prepayments. (2)Includes $3.8 billion of loans held outside of the CLO Issuers and $81.1 million of loans held by the consolidated INCREF 2025-FL1. Loans of $1.1 billion held by INCREF 2025-FL1 are valued using the more observable fair value of the notes issued by INCREF 2025-FL1. However, because the Company’s $81.1 million of retained income notes issued by INCREF 2025-FL1 are valued using a discounted cash flow model, we are required to classify all loans held by INCREF 2025-FL1 as Level 3 based on the lowest-level input used in the valuation. Weighted average rate and weighted average life include the Company’s loans held outside the CLO Issuers and retained income notes issued by INCREF 2025-FL1. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ in thousands | | December 31, 2025 | | Type | | Fair Value(2) | | Valuation Technique | | Unobservable Input | | Weighted Average Rate(2) | | Range | | Weighted Average Life (years)(1)(2) | | Commercial loans | | $ | 3,558,722 | | | Discounted cash flow | | Discount rate | | 6.36% | | 5.14% - 11.44% | | 0.31 |
(1)Based on expected cash flows and potential prepayments. (2)Includes $3.5 billion of loans held outside of INCREF 2025-FL1 and $80.7 million of loans held by the consolidated INCREF 2025-FL1. Loans of $1.1 billion held by INCREF 2025-FL1 are valued using the more observable fair value of the notes issued by INCREF 2025-FL1. However, because the Company’s $80.7 million of retained income notes issued by INCREF 2025-FL1 are valued using a discounted cash flow model, we are required to classify all loans held by INCREF 2025-FL1 as Level 3 based on the lowest-level input used in the valuation. Weighted average rate and weighted average life include the Company’s loans held outside INCREF 2025-FL1 and retained income notes issued by INCREF 2025-FL1. The following tables summarize the significant unobservable inputs used in the fair value measurement of our secured financing facilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | Type | | Valuation Technique | | Unobservable Input | | Weighted Average Rate | | Range | | Weighted Average Life (years)(1) | | Secured financing facilities | | Discounted cash flow | | Discount rate | | 5.05% | | 3.83% - 5.85% | | 0.31 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | Type | | Valuation Technique | | Unobservable Input | | Weighted Average Rate | | Range | | Weighted Average Life (years)(1) | | Secured financing facilities | | Discounted cash flow | | Discount rate | | 5.29% | | 4.12% - 6.04% | | 0.28 |
(1)Based on expected cash flows and potential prepayments.
|
| Schedule of Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation |
The following table shows a reconciliation of the beginning and ending fair value measurements of our revolving credit facility: | | | | | | | | | | | | | $ in thousands | Three Months Ended June 30, 2026 | | Six Months Ended June 30, 2026 | | Beginning Balance | $ | 16,000 | | | $ | 55,000 | | | Proceeds from revolving credit facility | 196,000 | | | 416,000 | | | Repayment of revolving credit facility | (112,000) | | | (371,000) | | | Net unrealized (gain) loss | — | | | — | | | Ending Balance | $ | 100,000 | | | $ | 100,000 | |
The following table shows a reconciliation of the beginning and ending fair value measurements of our secured financing facilities: | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2026 | | $ in thousands | Secured Lending Agreements | | Term Lending Agreements | | Total | | Beginning Balance | $ | 2,820,938 | | | $ | 223,397 | | | $ | 3,044,335 | | | Proceeds from secured financing facilities | 789,667 | | | 283 | | | 789,950 | | | Repayments of secured financing facilities | (1,018,456) | | | — | | | (1,018,456) | | | Net unrealized (gain) loss | (101) | | | 1 | | | (100) | | | | | | | | | Unrealized foreign currency (gain) loss | (8,274) | | | — | | | (8,274) | | | Ending Balance | $ | 2,583,774 | | | $ | 223,681 | | | $ | 2,807,455 | |
| | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2026 | | $ in thousands | Secured Lending Agreements | | Term Lending Agreements | | Total | | Beginning Balance | $ | 2,359,543 | | | $ | 223,033 | | | $ | 2,582,576 | | | Proceeds from secured financing facilities | 1,295,794 | | | 653 | | | 1,296,447 | | | Repayments of secured financing facilities | (1,053,052) | | | — | | | (1,053,052) | | | Net unrealized (gain) loss | (338) | | | (5) | | | (343) | | | Unrealized foreign currency (gain) loss | (18,173) | | | — | | | (18,173) | | | Ending Balance | $ | 2,583,774 | | | $ | 223,681 | | | $ | 2,807,455 | |
|