Real Estate Owned (Tables)
|
6 Months Ended |
Jun. 30, 2026 |
|---|
| Business Combination [Line Items] |
|
| Schedule of Real Estate Owned Assets |
The following table presents the REO assets as of June 30, 2026 and December 31, 2025:
|
|
|
|
|
|
|
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
Land |
$ |
14,231 |
|
|
$ |
14,231 |
|
Building and improvements |
|
79,228 |
|
|
|
80,769 |
|
Furniture, fixtures and equipment |
|
1,675 |
|
|
|
1,667 |
|
Accumulated depreciation |
|
(5,140 |
) |
|
|
(3,385 |
) |
Real estate owned, net |
$ |
89,994 |
|
|
$ |
93,282 |
|
|
| Schedule of Intangible Assets and Liabilities |
The following table summarizes the Company’s identified intangible assets and liabilities as of June 30, 2026 and December 31, 2025:
|
|
|
|
|
|
|
|
|
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
Intangible assets: |
|
|
|
|
|
|
Acquired in-place lease value |
|
$ |
7,450 |
|
|
$ |
7,450 |
|
Acquired above-market lease value |
|
|
262 |
|
|
|
262 |
|
Accumulated amortization |
|
|
(4,335 |
) |
|
|
(3,609 |
) |
Acquired lease intangible assets, net |
|
$ |
3,377 |
|
|
$ |
4,103 |
|
Intangible liabilities: |
|
|
|
|
|
|
Acquired below-market lease value |
|
$ |
776 |
|
|
$ |
776 |
|
Accumulated amortization |
|
|
(259 |
) |
|
|
(178 |
) |
Acquired lease intangible liabilities, net |
|
$ |
517 |
|
|
$ |
598 |
|
|
| Schedule of Amortization Pertaining to Acquired in Place Lease Value, Above Market and Below Market Lease Value |
Amortization pertaining to acquired in-place lease value, above-market lease value and below-market lease value is summarized below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30, |
|
|
Six months ended
June 30, |
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Amortization recorded as amortization expense: |
|
|
|
|
|
|
|
|
|
|
|
Acquired in-place lease value |
$ |
327 |
|
|
$ |
670 |
|
|
$ |
688 |
|
|
$ |
1,189 |
|
Amortization recorded as a (reduction) increase to rental income: |
|
|
|
|
|
|
|
|
|
|
|
Acquired above-market leases |
$ |
(23 |
) |
|
$ |
(5 |
) |
|
$ |
(46 |
) |
|
$ |
(11 |
) |
Acquired below-market leases |
|
40 |
|
|
|
24 |
|
|
|
81 |
|
|
|
48 |
|
Net rental income increase |
$ |
17 |
|
|
$ |
19 |
|
|
$ |
35 |
|
|
$ |
37 |
|
|
| Schedule of Estimated Amortization of Intangible Lease Assets and Liabilities |
Estimated amortization of the respective intangible lease assets and liabilities as of June 30, 2026 for each of the five succeeding years and thereafter is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In-Place
Leases |
|
|
Above-Market Leases |
|
|
Below-Market
Leases |
|
2026 (remainder of year) |
|
$ |
611 |
|
|
$ |
34 |
|
|
$ |
80 |
|
2027 |
|
|
1,058 |
|
|
|
61 |
|
|
|
153 |
|
2028 |
|
|
709 |
|
|
|
34 |
|
|
|
123 |
|
2029 |
|
|
373 |
|
|
|
9 |
|
|
|
88 |
|
2030 |
|
|
227 |
|
|
|
7 |
|
|
|
56 |
|
Thereafter |
|
|
239 |
|
|
|
15 |
|
|
|
17 |
|
Total |
|
$ |
3,217 |
|
|
$ |
160 |
|
|
$ |
517 |
|
|
| Schedule of Future Minimum Lease Payments to be Received Under Non-cancelable Operating Leases |
The table below presents the future minimum lease payments to be received under non-cancelable operating leases, excluding tenant reimbursements of expenses, and assuming no expiring leases are renewed, as of June 30, 2026. Leases for the multifamily properties are generally 12 months or less and are therefore excluded from the table below.
|
|
|
|
|
|
|
Lease Payments |
|
2026 (remainder of year) |
|
$ |
3,012 |
|
2027 |
|
|
5,685 |
|
2028 |
|
|
4,630 |
|
2029 |
|
|
3,672 |
|
2030 |
|
|
2,140 |
|
Thereafter |
|
|
1,873 |
|
Total |
|
$ |
21,012 |
|
|
| Addison and Irving, Tx Acquisition |
|
| Business Combination [Line Items] |
|
| Schedule of Fair Value of Assumed Assets and Liabilities on the Acquisition |
The following table shows additional information about the acquisitions, including the fair value of the assumed assets and liabilities on the acquisition dates:
|
|
|
|
|
|
|
|
|
Arbor Mist |
|
|
Parkview |
|
Acquisition date |
May 1, 2025 |
|
|
July 2, 2025 |
|
Number of properties |
1 |
|
|
1 |
|
Location |
Kansas City, MO |
|
|
Charlotte, NC |
|
Property type |
Multifamily |
|
|
Office |
|
Amortized cost basis of loan as of acquisition date |
$ |
38,933 |
|
|
$ |
22,892 |
|
CECL reserve as of acquisition date |
$ |
68 |
|
|
$ |
2,311 |
|
Loan risk rating as of acquisition date |
5 |
|
|
5 |
|
CECL reserve charge-off upon acquisition |
$ |
68 |
|
|
$ |
2,311 |
|
|
|
|
|
|
|
Land |
$ |
1,778 |
|
|
$ |
6,620 |
|
Building and improvements |
|
35,123 |
|
|
|
10,733 |
|
Furniture, fixtures and equipment |
|
1,185 |
|
|
|
— |
|
Acquired in-place lease value |
|
773 |
|
|
|
2,866 |
|
Acquired above-market lease value |
|
— |
|
|
|
231 |
|
Acquired below-market lease value |
|
— |
|
|
|
(325 |
) |
Total |
$ |
38,859 |
|
|
$ |
20,125 |
|
|