| Schedule of Investment Assets Carried at Fair Value on a Recurring Basis |
The following table presents the Company’s investment assets carried at fair value on a recurring basis on the Condensed Consolidated Balance Sheets by their level in the fair value hierarchy as of June 30, 2026 ($ in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2026 |
|
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
Financial Assets: |
|
|
|
|
|
|
|
|
|
Commercial real estate loan investments |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2,900,385 |
|
Investments in real estate-related assets: |
|
|
|
|
|
|
|
|
|
Mortgage servicing rights |
|
|
— |
|
|
|
11,647 |
|
|
|
— |
|
Residential bridge loans |
|
|
— |
|
|
|
— |
|
|
|
33,604 |
|
Tax liens |
|
|
— |
|
|
|
— |
|
|
|
409,980 |
|
Total investments in real estate-related assets: |
|
|
— |
|
|
|
11,647 |
|
|
|
443,584 |
|
Total |
|
$ |
— |
|
|
$ |
11,647 |
|
|
$ |
3,343,969 |
|
On March 31, 2026, the Company transferred the outstanding balance of the Company’s mortgage servicing rights portfolio of $73.4 million from Level 3 to Level 2 as a result of executing a signed purchase and sale agreement. The following table presents the Company’s investment assets carried at fair value on a recurring basis on the Condensed Consolidated Balance Sheets by their level in the fair value hierarchy as of December 31, 2025 ($ in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
Financial Assets: |
|
|
|
|
|
|
|
|
|
Commercial real estate loan investments |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2,177,027 |
|
Investments in real estate-related assets: |
|
|
|
|
|
|
|
|
|
Mortgage servicing rights |
|
|
— |
|
|
|
— |
|
|
|
74,848 |
|
Residential bridge loans |
|
|
— |
|
|
|
— |
|
|
|
27,735 |
|
Tax liens |
|
|
— |
|
|
|
— |
|
|
|
368,943 |
|
Total investments in real estate-related assets: |
|
|
— |
|
|
|
— |
|
|
|
471,526 |
|
Total |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2,648,553 |
|
|
| Summay of Changes in Investments |
The following tables summarize changes in investments for the three and six months ended June 30, 2026 and 2025 ($ in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2026 |
|
|
|
Commercial Real
Estate Loan
Investments |
|
|
Mortgage Servicing Rights |
|
|
Residential Bridge Loans |
|
|
Tax Liens |
|
Balance at March 31, 2026 |
|
$ |
2,428,080 |
|
|
$ |
73,396 |
|
|
$ |
27,570 |
|
|
$ |
285,331 |
|
Loan originations and fundings |
|
|
510,741 |
|
|
|
— |
|
|
|
8,302 |
|
|
|
235,014 |
|
Repayments |
|
|
(38,436 |
) |
|
|
— |
|
|
|
(2,268 |
) |
|
|
(109,347 |
) |
Return of capital |
|
|
— |
|
|
|
(61,167 |
) |
|
|
— |
|
|
|
— |
|
Net realized loss on investments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(585 |
) |
Net unrealized loss on investments |
|
|
— |
|
|
|
(582 |
) |
|
|
— |
|
|
|
(433 |
) |
Balance at June 30, 2026 |
|
$ |
2,900,385 |
|
|
$ |
11,647 |
|
|
$ |
33,604 |
|
|
$ |
409,980 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2025 |
|
|
|
Commercial Real
Estate Loan
Investments |
|
|
Mortgage Servicing Rights |
|
|
Residential Bridge Loans |
|
|
Tax Liens |
|
Balance at March 31, 2025 |
|
$ |
871,906 |
|
|
$ |
79,376 |
|
|
$ |
3,029 |
|
|
$ |
56,144 |
|
Loan originations and fundings |
|
|
446,472 |
|
|
|
2,525 |
|
|
|
16,858 |
|
|
|
311,854 |
|
Repayments |
|
|
— |
|
|
|
— |
|
|
|
(274 |
) |
|
|
(26,824 |
) |
Return of capital |
|
|
— |
|
|
|
(358 |
) |
|
|
— |
|
|
|
— |
|
Net realized loss on investments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(317 |
) |
Net unrealized loss on investments |
|
|
— |
|
|
|
(262 |
) |
|
|
— |
|
|
|
— |
|
Balance at June 30, 2025 |
|
$ |
1,318,378 |
|
|
$ |
81,281 |
|
|
$ |
19,613 |
|
|
$ |
340,857 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2026 |
|
|
|
Commercial Real
Estate Loan
Investments |
|
|
Mortgage Servicing Rights |
|
|
Residential Bridge Loans |
|
|
Tax Liens |
|
Balance at December 31, 2025 |
|
$ |
2,177,027 |
|
|
$ |
74,848 |
|
|
$ |
27,735 |
|
|
$ |
368,943 |
|
Loan originations and fundings |
|
|
835,623 |
|
|
|
50 |
|
|
|
15,267 |
|
|
|
239,447 |
|
Repayments |
|
|
(113,614 |
) |
|
|
— |
|
|
|
(9,398 |
) |
|
|
(196,615 |
) |
Return of capital |
|
|
— |
|
|
|
(62,783 |
) |
|
|
— |
|
|
|
— |
|
Net realized loss on investments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,405 |
) |
Net unrealized gain (loss) on investments |
|
|
1,349 |
|
|
|
(468 |
) |
|
|
— |
|
|
|
(390 |
) |
Balance at June 30, 2026 |
|
$ |
2,900,385 |
|
|
$ |
11,647 |
|
|
$ |
33,604 |
|
|
$ |
409,980 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2025 |
|
|
|
Commercial Real
Estate Loan
Investments |
|
|
Mortgage Servicing Rights |
|
|
Residential Bridge Loans |
|
|
Tax Liens |
|
Balance at December 31, 2024 |
|
$ |
370,401 |
|
|
$ |
9,835 |
|
|
$ |
2,750 |
|
|
$ |
68,082 |
|
Loan originations and fundings |
|
|
947,977 |
|
|
|
73,404 |
|
|
|
17,137 |
|
|
|
317,409 |
|
Repayments |
|
|
— |
|
|
|
— |
|
|
|
(274 |
) |
|
|
(43,793 |
) |
Return of capital |
|
|
— |
|
|
|
(983 |
) |
|
|
— |
|
|
|
— |
|
Net realized loss on investments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(841 |
) |
Net unrealized loss on investments |
|
|
— |
|
|
|
(975 |
) |
|
|
— |
|
|
|
— |
|
Balance at June 30, 2025 |
|
$ |
1,318,378 |
|
|
$ |
81,281 |
|
|
$ |
19,613 |
|
|
$ |
340,857 |
|
|
| Schedule of Significant Unobservable Inputs Used in Fair Value of Investments |
The key unobservable inputs used in determining the fair value of the Company’s investments as of June 30, 2026 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Level 3 Asset Category |
|
Fair
Value |
|
|
Valuation
Technique |
|
Significant
Unobservable
Inputs |
|
Range of
Inputs |
|
Impact to
Valuation from
an Increase in
Input |
Commercial real estate loan investments |
|
$ |
2,900,385 |
|
|
Discounted cash flow |
|
Discount rate |
|
4.85% - 24.73% |
|
Decrease |
Investments in real estate-related assets: |
|
|
|
|
|
|
|
|
|
|
|
Residential bridge loans |
|
$ |
33,604 |
|
|
Discounted cash flow |
|
Discount rate |
|
10.00% |
|
Decrease |
Tax liens |
|
$ |
409,980 |
|
|
Yield analysis |
|
Yield |
|
0% - 19.65% |
|
Increase |
The key unobservable inputs used in determining the fair value of the Company’s investments as of December 31, 2025 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Level 3 Asset Category |
|
Fair
Value |
|
|
Valuation
Technique |
|
Significant
Unobservable
Inputs |
|
Range of
Inputs |
|
|
Impact to
Valuation from
an Increase in
Input |
Commercial real estate loan investments |
|
$ |
2,177,027 |
|
|
Discounted cash flow |
|
Discount rate |
|
4.10% - 12.84% |
|
|
Decrease |
Investments in real estate-related assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage servicing rights |
|
$ |
74,848 |
|
|
NAV |
|
NAV |
|
$ |
74,848 |
|
|
Increase |
Residential bridge loans |
|
$ |
27,735 |
|
|
Discounted cash flow |
|
Discount rate |
|
10.00% |
|
|
Decrease |
Tax liens |
|
$ |
368,943 |
|
|
Yield analysis |
|
Yield |
|
5.20% - 17.02% |
|
|
Increase |
|