Commercial Mortgage Loans, Subordinate Loans and Other Lending Assets, Net (Tables)

6 Months Ended

Jun. 30, 2026

Our loan portfolio was comprised of the following as of June 30, 2026 and December 31, 2025 ($ in thousands):


Loan Type	June 30, 2026		December 31, 2025
Commercial mortgage loans, net(1)	$	—	$	8,712,018
Subordinate loans, net		—		62,198
Carrying value, net	$	—	$	8,774,216

(1)

Includes $158.7 million of contiguous financing structured as subordinate loans in 2025.

Schedule of Activity Related to Loan Investment Portfolio

Activity relating to our loan portfolio for the six months ended June 30, 2026 was as follows ($ in thousands):


	Principal Balance			Deferred Fees/Other Items			Specific CECL Allowance			Carrying Value
December 31, 2025	$	9,204,060		$	(53,090	)	$	(338,000	)	$	8,812,970
New loan fundings	$	299,900		$	—		$	—		$	299,900
Add-on loan fundings(1)	$	373,806		$	—		$	—		$	373,806
Loan repayments and sale	$	(9,500,444	)	$	—		$	—		$	(9,500,444	)
Net realized loss on investments(2)	$	(387,561	)	$	48,474		$	—		$	(339,087	)
Decrease in Specific CECL Allowance(3)	$	—		$	—		$	338,000		$	338,000
Gain (loss) on foreign currency translation	$	5,615		$	(205	)	$	—		$	5,410
Deferred fees and other items(4)	$	—		$	(4,493	)	$	—		$	(4,493	)
Amortization of fees	$	4,624		$	9,314		$	—		$	13,938
June 30, 2026	$	—		$	—		$	—		$	—

(1)

Represents fundings subsequent to loan closing.

(2)

A net realized loss on investments of $339.1 million was recorded during the six months ended June 30, 2026. On the Closing Date, we wrote off $335.0 million of previously recorded Specific CECL Allowance on loans that were included in the Asset sale. We recognized an additional net realized loss of $2.6 million resulting from the discount on the Asset Sale compared to our loan’s cost basis. An additional net realized loss of $1.5 million was recognized upon the discounted repayment of the Chicago Hotel Loan.

(3)

We wrote off $335.0 million of previously recorded Specific CECL Allowance on the Closing Date. Upon the discounted repayment of the Chicago Hotel Loan, we wrote off an additional $1.5 million of previously recorded Specific CECL Allowance and reversed the remaining $1.5 million Specific CECL Allowance. See additional detail below.

(4)

Other items primarily consist of purchase discounts or premiums, cost recovery interest, exit fees, and deferred origination expenses.

Schedule of Overall Statistics for the Loan Portfolio

The following table details overall statistics for our loan portfolio as of December 31, 2025 ($ in thousands):


	December 31, 2025
Number of loans		56
Principal balance	$	9,204,060
Carrying value, net	$	8,774,216
Unfunded loan commitments(1)	$	1,037,765
Weighted-average cash coupon(2)		6.5	%
Weighted-average remaining fully-extended term(3)	3.2 years
Weighted-average expected term(4)	2.2 years

(1)

Unfunded loan commitments are primarily funded to finance construction costs, tenant improvements, leasing commissions, or carrying costs. These future commitments are funded over the term of each loan, subject in certain cases to an expiration date.

(2)

For floating rate loans, based on applicable benchmark rates as of the specified dates. For loans placed on nonaccrual, the interest rate used in calculating weighted-average cash coupon is 0%.

(3)

Assumes all extension options are exercised.

(4)

Expected term represents our estimated timing of repayments as of the specified dates. Excludes risk-rated five loans.

Schedule of Mortgage Loans on Real Estate

Property Type

The table below presents information on the property type of the properties securing the loans in our portfolio solely as of December 31, 2025 ($ in thousands):


	December 31, 2025
Property Type	Carrying Value			% of Portfolio(1)
Residential(2)	$	2,315,975		26.3%
Office		2,064,821		23.4
Hotel		1,770,331		20.1
Industrial		1,026,213		11.6
Data Centers		560,699		6.4
Retail		323,327		3.7
Mixed Use		302,544		3.4
Other(3)		449,060		5.1
Total	$	8,812,970		100.0%
General CECL Allowance(4)		(38,754	)
Total Carrying Value, net	$	8,774,216

(1)

Percentage of portfolio calculations are made prior to consideration of General CECL Allowance.

(2)

Includes multifamily (11.4%), senior housing (7.7%), student housing (5.0%), and residential-for-sale (2.2%).

(3)

Other property types include urban predevelopment (2.6%) and pubs (2.5%).

(4)

$5.8 million of the General CECL Allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable, accrued expenses and other liabilities in our condensed consolidated balance sheet.

Geography

The table below presents information on the geographic distribution of the properties securing the loans in our portfolio solely as of December 31, 2025 ($ in thousands):


	December 31, 2025
Geographic Location	Carrying Value			% of Portfolio(1)
United Kingdom	$	2,603,388		29.5%
New York City		1,616,025		18.3
Other Europe(2)		1,178,074		13.4
Southeast		973,051		11.0
West		824,486		9.4
Midwest		754,115		8.6
Other(3)		863,831		9.8
Total	$	8,812,970		100.0%
General CECL Allowance(4)		(38,754	)
Total Carrying Value, net	$	8,774,216

(1)

Percentage of portfolio calculations are made prior to consideration of General CECL Allowance.

(2)

Other Europe includes Germany (7.9%), Sweden (3.0%), Italy (2.2%), and the Netherlands (0.3%).

(3)

Other includes Southwest (4.2%), Northeast (3.5%), Mid-Atlantic (1.7%) and Other (0.4%).

(4)

Schedule of Carrying Value of Loan Portfolio Based on Internal Risk Ratings

The following table presents the carrying value of our loan portfolio by year of origination and internal risk rating and gross write-offs by year of origination solely as of December 31, 2025 ($ in thousands):


December 31, 2025
									Amortized Cost(1) by Year Originated
Risk Rating	Number of Loans		Total			% of Portfolio			2025		2024		2023		2022		2021		Prior
1		—	$	—			—	%	$	—	$	—	$	—	$	—	$	—	$	—
2		1		654,594		7.4%				—		—		—		654,594		—		—
3		51		7,918,714		89.9%				3,459,542		1,319,897		559,238		675,090		1,051,358		853,589
4		1		73,112		0.8%				—		—		—		—		—		73,112
5		3		166,550		1.9%				—		—		—		—		—		166,550
Total		56	$	8,812,970		100.0%			$	3,459,542	$	1,319,897	$	559,238	$	1,329,684	$	1,051,358	$	1,093,251
General CECL Allowance(2)				(38,754	)
Total loans, net			$	8,774,216
Weighted-Average Risk Rating				3.0
Gross write-offs			$	6,200					$	—	$	—	$	—	$	—	$	—	$	6,200

(1)

Net of Specific CECL Allowance.

(2)

$5.8 million of the General CECL Allowance for 2025 is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable, accrued expenses and other liabilities in our condensed consolidated balance sheets.

Schedule of CECL Reserves

The following table summarizes changes in CECL Allowances for the six months ended June 30, 2026 ($ in thousands):


	Specific CECL			General CECL Allowance									Total CECL			CECL Allowance as % of Amortized Cost
	Allowance(1)			Funded			Unfunded			Total			Allowance			General(1)			Total
December 31, 2025	$	338,000		$	38,754		$	5,759		$	44,513		$	382,513			0.51	%		4.18	%
Changes:
Allowances (Reversals), net(2)		—			(1,256	)		(2,033	)		(3,289	)		(3,289	)
March 31, 2026	$	338,000		$	37,498		$	3,726		$	41,224		$	379,224			0.47	%		4.10	%
Changes:
Reversals		(1,464	)		(37,498	)		(3,726	)		(41,224	)		(42,688	)
Write-offs		(336,536	)		—			—			—			(336,536	)
June 30, 2026	$	—		$	—		$	—		$	—		$	—			0.00	%		0.00	%

(1)

Loans evaluated for Specific CECL Allowance are excluded from General CECL Allowance pool.

(2)

During the three months ended March 31, 2026, our General CECL Allowance decreased by $3.3 million. The decrease was primarily due to the favorable impacts of portfolio seasoning. The decrease was partially offset by the effect of loan originations.

The following table summarizes changes in CECL Allowances for the six months ended June 30, 2025 ($ in thousands):


	Specific CECL		General CECL Allowance							Total CECL		CECL Allowance as % of Amortized Cost
	Allowance(1)		Funded		Unfunded			Total		Allowance		General(1)			Total
December 31, 2024	$	342,500	$	30,836	$	5,948		$	36,784	$	379,284		0.52	%		5.07	%
Changes:
Allowances (Reversals), net(2)		—		3,876		132			4,008		4,008
March 31, 2025	$	342,500	$	34,712	$	6,080		$	40,792	$	383,292		0.54	%		4.75	%
Changes:
Allowances (Reversals), net(3)		—		4,136		(1,023	)		3,113		3,113
June 30, 2025	$	342,500	$	38,848	$	5,057		$	43,905	$	386,405		0.51	%		4.29	%

(1)

Loans evaluated for Specific CECL Allowance are excluded from General CECL Allowance pool.

(2)

During the three months ended March 31, 2025, our General CECL Allowance increased by $4.0 million. The increase was primarily due to a more adverse macroeconomic outlook as well as the effect of loan originations. The increase was partially offset by the favorable impacts of portfolio seasoning.

(3)

During the three months ended June 30, 2025, our General CECL Allowance increased by $3.1 million. The increase was primarily due to the effect of
loan originations as well as extending our expected loan repayment dates. The increase was partially offset by the favorable impacts of portfolio seasoning.