The following tables show a summary of the Company’s commercial mortgage loans held for investment as of June 30, 2026 and December 31, 2025:

June 30, 2026


Loan Type (1)	Number of Loans		Principal Balance		Unamortized (fees)/costs, net		Allowance for credit losses			Carrying Value		Weighted Average Interest Rate (2)			Weighted Average Years to Maturity (3)
First mortgage loans		13	$	305,829	$	1,641	$	(9,618	)	$	297,852		7.8	%		0.6
Credit loans		1		7,500		—		—			7,500		9.2	%		1.3
Total and average		14	$	313,329	$	1,641	$	(9,618	)	$	305,352		7.9	%		0.6

December 31, 2025


Loan Type (1)	Number of Loans		Principal Balance		Unamortized (fees)/costs, net		Allowance for credit losses			Carrying Value		Weighted Average Interest Rate (2)			Weighted Average Years to Maturity (3)
First mortgage loans		14	$	343,175	$	1,148	$	(3,930	)	$	340,393		7.3	%		0.4
Credit loans		1		7,500		—		—			7,500		9.2	%		1.8
Total and average		15	$	350,675	$	1,148	$	(3,930	)	$	347,893		7.3	%		0.4

(1)

First mortgage loans are first position mortgage loans and credit loans are mezzanine and subordinated loans.

(2)

Weighted average interest rate is based on the loan spreads plus the applicable indices as of the last interest reset date, which is typically the 15th of each month. On June 15, 2026, the one-month term USD Secured Overnight Financing Rate (“SOFR”) rate reset to 3.63%. On December 15, 2025, the SOFR rate reset to 3.75%. Weighted average interest rate excludes maturity default interest and interest on loans placed on nonaccrual status.

(3)

Weighted average years to maturity excludes allowable extensions on the loans.

For the six months ended June 30, 2026, the activity in the Company’s commercial mortgage loans, held-for-investment portfolio was as follows:


	Commercial mortgage loans at cost			Allowance for credit losses			Carrying Value
Balance at Beginning of Year	$	351,823		$	(3,930	)	$	347,893
Loan originations/advances		47,550			—			47,550
Principal repayments		(84,932	)		—			(84,932	)
Amortization of loan origination and deferred exit fees		726			—			726
Origination fees and extension fees received on commercial loans		(197	)		—			(197	)
Provision for credit losses		—			(5,688	)		(5,688	)
Balance at End of Period	$	314,970		$	(9,618	)	$	305,352

The following table presents the activity in the Company’s allowance for credit losses for the six months ended June 30, 2026:


	Commercial Mortgage Loans			Unfunded Loan Commitments (1)			Total
Balance at beginning of period	$	(3,930	)	$	(22	)	$	(3,952	)
Provision for credit losses		(5,688	)		(40	)		(5,728	)
Ending allowance for credit losses	$	(9,618	)	$	(62	)	$	(9,680	)

(1)

The reserve for expected credit losses related to unfunded loan commitments is recorded in “accrued expenses and other liabilities” on the consolidated balance sheets.

The following table presents the activity in the Company’s allowance for credit losses for the six months ended June 30, 2025:


	Commercial Mortgage Loans			Unfunded Loan Commitments (1)			Total
Balance at beginning of period	$	(13,898	)	$	(96	)	$	(13,994	)
Reversal of (provision for) credit losses		2,521			(9	)		2,512
Charge-offs (2)		68			—			68
Ending allowance for credit losses	$	(11,309	)	$	(105	)	$	(11,414	)

(1)

The reserve for expected credit losses related to unfunded loan commitments is recorded in “accrued expenses and other liabilities” on the consolidated balance sheets.

(2)

Relates to the acquisition of a property secured by a senior loan in May 2025. See Note 14 – “Real Estate Owned” for additional information.

As of June 30, 2026, the Company had a total current expected credit loss (“CECL”) reserve of $9,680, which included an asset-specific component of $1,505 related to one loan. During the six months ended June 30, 2026, the Company increased the CECL reserve by $5,728. The primary driver of the change was a $5,165 increase in the analytical portion of the CECL reserve as two loans exceeded their maturity dates and had not been refinanced or paid off as of June 30, 2026. In addition, there was a $563 increase in the asset-specific CECL reserve primarily due to a $1,505 reserve recorded for a loan that was in foreclosure that had a decrease in the estimated collateral value as the net operating income declined, offset by the reduction in a reserve for one loan as the collateral value increased due to improved net operating income. See “Asset-Specific CECL Reserve” section below for further discussion on the loans with asset-specific CECL reserve.

As of June 30, 2025, the Company had a total CECL reserve of $11,414, which included an asset-specific component of $6,698 related to three loans. During the six months ended June 30, 2025, the Company decreased the CECL reserve by $2,580, which includes $68 charge-off related to one loan.

All investments are assigned an initial risk rating of 2 at origination or acquisition.

As of June 30, 2026, seven loans had a risk rating of 2, two had a risk rating of 3, three had a risk rating of 4 and two had a risk rating of 5. As of December 31, 2025, five loans had a risk rating of 2, eight had a risk rating of 3 and two had a risk rating of 4.

The table below provides the components of the asset-specific CECL reserve as of June 30, 2026 and December 31, 2025:


Loan Type	Collateral Type	June 30, 2026		December 31, 2025
Senior	Multifamily	$	—	$	942	(1)
Senior	Office		1,505		—	(2)
Total		$	1,505	$	942
____________

(1)

The loan is secured by a multifamily property in Converse, TX with an outstanding balance of $24,946 and no unfunded commitment as of June 30, 2026. The loan matured on May 9, 2026. During the quarter ended June 30, 2026, the Company obtained an updated appraisal that exceeded the loan balance and the asset-specific CECL reserve of $3,615, which included additional asset-specific CECL reserve of $2,673 recorded during the three months ended March 31, 2026, was reversed. The loan has a risk rating of 4 as of June 30, 2026. The Company is negotiating an extension with the borrower that the Company expects to complete in the third quarter of 2026.

(2)

The loan is secured by an office property in Honolulu, HI with an outstanding balance of $12,700 and no unfunded commitment as of June 30, 2026. The loan matured on February 9, 2026 and was not repaid or extended. The Company sent the borrower a maturity default notice and began the foreclosure process. The Company has recorded an asset-specific CECL reserve of $1,505 for the loan as of June 30, 2026 as the estimated value of the property securing the loan was below the loan balance. The loan has a risk rating of 5 as of June 30, 2026.

There were no loans on nonaccrual status during the three and six months ended June 30, 2026. During the three and six months ended June 30, 2025, the Company recognized $0 and $767, respectively, in interest income related to the nonaccrual status loans prior to such loans being placed on nonaccrual status. During the three and six months ended June 30, 2025, there was no reversal of interest income as a result of placing the loans on nonaccrual status. For the three and six months ended June 30, 2025, the total interest income forgone on the loans on nonaccrual status was $1,084 and $1,656, respectively.

The Company may amend or modify a loan based on its specific facts and circumstances. These modifications are often in the form of a term extension to provide the borrower additional time to refinance or sell the collateral property in order to repay the principal balance of the loan. Such extensions are generally made at the loan’s contractual interest rate and may require an extension fee be paid to the Company.

During the three and six months ended June 30, 2026, the Company made no modification that is disclosable under ASU 2022-02, Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”). During the three months ended June 30, 2025, the Company

made no modification that is disclosable under ASU 2022-02. During the six months ended June 30, 2025, the Company made one such modification that is disclosable under ASU 2022-02, as it was considered an other-than-insignificant payment delay for a borrower experiencing financial difficulty. In this instance, the Company granted a term extension to February 9, 2026 for a senior loan secured by an office property located in Honolulu, HI described above. The modification provided for $750 in principal paydown and payments toward cash flow reserve deposit and modification fee of $600 and $50, respectively. The modification also provides for the accrued maturity default interest of $631 on the loan as of March 31, 2025 to be repaid as deferred commitment fee upon loan maturity. The loan’s modified terms were included in the determination of the CECL reserve. The loan had an amortized cost basis of $11,195, which is net of $1,505 of asset-specific CECL reserve on the loan, representing 3.7% of the Company’s commercial mortgage loans as of June 30, 2026. The loan matured on February 9, 2026 and was not repaid or extended. The Company sent the borrower a maturity default notice and began the foreclosure process.