v3.26.1
COMMERCIAL MORTGAGE LOANS HELD-FOR-INVESTMENT (Tables)
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Schedule of Commercial Mortgage Loans
The following tables summarize certain characteristics of the Company's investments in commercial mortgage loans as of June 30, 2026 and December 31, 2025:
Weighted Average
Loan TypeUnpaid Principal Balance
Carrying Value(1)
Loan CountFloating Rate Loan %
Coupon(2)
Term
 (Years)(3)
June 30, 2026
Loans held-for-investment
Senior secured loans(4)
$1,014,665,959 $1,012,913,408 51 100.0 %7.0 %1.5
Allowance for credit lossesN/A(21,248,582)
1,014,665,959 991,664,826 51 100.0 %7.0 %1.5

Weighted Average
Loan TypeUnpaid Principal Balance
Carrying Value(1)
Loan CountFloating Rate Loan %
Coupon(2)
Term
 (Years)(3)
December 31, 2025
Loans held-for-investment
Senior secured loans(4)
$1,140,268,217 $1,136,706,113 61 100.0 %7.2 %1.7
Allowance for credit lossesN/A(22,658,121)
1,140,268,217 1,114,047,992 61 100.0 %7.2 %1.7

(1)    Carrying Value includes $815,303 and $1,657,584 in unamortized purchase discounts as of June 30, 2026 and December 31, 2025, respectively.
(2)    Weighted average coupon assumes applicable 30-day term Secured Overnight Financing Rate ("SOFR") of 3.61% and 3.85% as of June 30, 2026 and December 31, 2025, respectively, inclusive of weighted average interest rate floor of 2.70% and 2.18%, respectively. As of June 30, 2026 and December 31, 2025, 100.0% of the investments by total investment exposure earned a floating rate indexed to 30-day term SOFR.
(3)    Weighted average remaining term assumes all extension options are exercised by the borrower; provided, however, that our loans may be repaid prior to such date.
(4)    As of June 30, 2026, $642,093,223 of the outstanding senior secured loans were held in VIEs and $349,571,603 of the outstanding senior secured loans were held outside of VIEs. As of December 31, 2025, $856,064,487 of the outstanding senior secured loans were held in VIEs and $257,983,507 of the outstanding senior secured loans were held outside of VIEs.

Activity: For the six months ended June 30, 2026, the loan portfolio activity was as follows:


Commercial Mortgage Loans Held-for-Investment
Balance at December 31, 2025$1,114,047,992 
Purchases and advances138,921,463 
Principal payments(230,790,155)
Transfer to real estate owned(32,650,387)
Charge-offs9,302,861 
Purchase discount(129,549)
Origination and other loan fees(1,385,963)
Accretion of purchase discount971,833 
Accretion of deferred loan fees1,270,053 
Provision for allowance for credit losses(7,893,322)
Balance at June 30, 2026
$991,664,826 
Schedule of Loan Risk Ratings The following table presents the principal balance and net book value of the loan portfolio based on the Company's internal risk ratings as of June 30, 2026 and December 31, 2025:
June 30, 2026
Amortized Cost by Year of Origination
Risk RatingNumber of LoansOutstanding Principal202620252024202320222021
1— $— $— $— $— $— $— 
211 190,807,433 50,021,109 43,968,519 42,885,734 — 80,318,209 23,217,812 
328 613,595,339 — 162,188,656 121,913,132 — 128,174,669 147,836,182 
46 112,179,473 — — — — 38,806,164 71,851,879 
56 98,083,714 — — — — 47,746,040 32,736,721 
51 $1,014,665,959 $50,021,109 $206,157,175 $164,798,866 $— $295,045,082 $275,642,594 

December 31, 2025
Amortized Cost by Year of Origination
Risk RatingNumber of LoansOutstanding Principal20252024202320222021
1— $— $— $— $— $— $— 
29 161,089,912 43,904,254 48,438,856 — 68,375,256 — 
338 752,514,730 182,723,449 133,591,415 — 134,038,225 297,723,546 
46 109,281,497 — — — 73,034,316 34,009,099 
58 117,382,078 — — — 84,542,855 13,666,721 
61 $1,140,268,217 $226,627,703 $182,030,271 $— $359,990,652 $345,399,366 
Schedule of Geographic Concentrations The following tables present the geographic and property types of collateral underlying the Company's commercial mortgage loans as a percentage of the loans' carrying value as of June 30, 2026 and December 31, 2025:
Loans Held-for-Investment
June 30, 2026December 31, 2025
Geography
South32.2 %32.4 %
Southwest25.5 26.2 
Midwest23.7 13.9 
Mid-Atlantic10.1 16.9 
West8.5 10.6 
Total100.0 %100.0 %
June 30, 2026
December 31, 2025
Collateral Property Type
Multifamily91.7 %92.6 %
Seniors Housing and Healthcare8.3 7.4 
Total100.0 %100.0 %
Schedule of Provision for Credit Losses
The following table presents the changes for the three and six months ended June 30, 2026 and June 30, 2025 in the provision for credit losses on loans held-for-investment:
Three months endedSix months ended
June 30, 2026June 30, 2025June 30, 2026June 30, 2025
Allowance for credit losses at beginning of period$19,543,903 $17,060,194 $22,658,121 $11,320,220 
Provision for credit losses8,625,695 102,459 7,893,322 5,842,433 
Charge-offs(6,921,016)(2,910,385)(9,302,861)(2,910,385)
Allowance for credit losses at end of period$21,248,582 $14,252,268 $21,248,582 $14,252,268 

The following table presents the changes for the three and six months ended June 30, 2026 and June 30, 2025 in the provision for credit losses on the unfunded commitments of the Company's loans held-for-investment:
Three months endedSix months ended
June 30, 2026June 30, 2025June 30, 2026June 30, 2025
Allowance for credit losses at beginning of period$— $15,241 $— $57,554 
Provision for credit losses— (7,691)— (50,004)
Allowance for credit losses at end of period$— $7,550 $— $7,550 

The following tables present the allowance for credit losses for loans held-for-investment as of June 30, 2026 and December 31, 2025:

June 30, 2026
General ReserveSpecific ReserveTotal Reserve
Allowance for credit losses:
Loans held for investment$3,801,590 $17,446,992 $21,248,582 
Total allowance for credit losses$3,801,590 $17,446,992 $21,248,582 
Total unpaid principal balance$916,582,245 $98,083,714 $1,014,665,959 

December 31, 2025
General ReserveSpecific ReserveTotal Reserve
Allowance for credit losses:
Loans held for investment$5,029,531 $17,628,590 $22,658,121 
Total allowance for credit losses$5,029,531 $17,628,590 $22,658,121 
Total unpaid principal balance$1,022,886,139 $117,382,078 $1,140,268,217