
						Weighted Average
Loan Type	Unpaid Principal Balance		Carrying Value(1)		Loan Count	Floating 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 losses	N/A		(21,248,582)
	1,014,665,959		991,664,826		51	100.0	%	7.0	%	1.5


						Weighted Average
Loan Type	Unpaid Principal Balance		Carrying Value(1)		Loan Count	Floating 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 losses	N/A		(22,658,121)
	1,140,268,217		1,114,047,992		61	100.0	%	7.2	%	1.7

(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.

(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.


	Commercial Mortgage Loans Held-for-Investment
Balance at December 31, 2025	$	1,114,047,992
Purchases and advances	138,921,463
Principal payments	(230,790,155)
Transfer to real estate owned	(32,650,387)
Charge-offs	9,302,861
Purchase discount	(129,549)
Origination and other loan fees	(1,385,963)
Accretion of purchase discount	971,833
Accretion of deferred loan fees	1,270,053

Loan Risk Ratings: As further described in Note 2, the Company evaluates the commercial mortgage loan portfolio on a quarterly basis and assigns a risk rating based on a variety of factors. 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 Rating	Number of Loans	Outstanding Principal		2026		2025		2024		2023		2022		2021
1	—	$	—	$	—			$	—	$	—	$	—	$	—
2	11	190,807,433		50,021,109		43,968,519		42,885,734		—		80,318,209		23,217,812
3	28	613,595,339		—		162,188,656		121,913,132		—		128,174,669		147,836,182
4	6	112,179,473		—		—		—		—		38,806,164		71,851,879
5	6	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 Rating	Number of Loans	Outstanding Principal		2025		2024		2023		2022		2021
1	—	$	—	$	—	$	—	$	—	$	—	$	—
2	9	161,089,912		43,904,254		48,438,856		—		68,375,256		—
3	38	752,514,730		182,723,449		133,591,415		—		134,038,225		297,723,546
4	6	109,281,497		—		—		—		73,034,316		34,009,099
5	8	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

The average risk rating of the portfolio declined during the six months ended June 30, 2026. The change in underlying risk rating consisted of loans that paid off with a risk rating of "2" of $15.3 million, a risk rating of "3" of $192.4 million and a risk rating of "5" of $24.1 million during the six months ended June 30, 2026, partially offset by funding of loans with a risk rating of "3" of $137.5 million and a risk rating of "5" of $1.1 million. Additionally, $17.0 million of loans with a risk rating of "2" transitioned to a risk rating of "3," $62.1 million of loans with a risk rating of "3" transitioned to a risk rating of "2," $58.5 million of loans with a risk rating of "3" transitioned to a risk rating of "4," $21.9 million of loans with a risk rating of "3" transitioned to a risk rating of "5," $41.4 million of loans with a risk rating of "4" transitioned to a risk rating of "3" and $14.2 million of loans with a risk rating of "4" transitioned to a risk rating of "5". Further, $32.4 million of loans with a risk rating of "5" were foreclosed and moved to REO.


	Three months ended				Six months ended
	June 30, 2026		June 30, 2025		June 30, 2026		June 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 losses	8,625,695		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


	Three months ended				Six months ended
	June 30, 2026		June 30, 2025		June 30, 2026		June 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


	June 30, 2026
	General Reserve		Specific Reserve		Total 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 Reserve		Specific Reserve		Total 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

During the three months ended June 30, 2026, the Company recorded an increase of $1.7 million in the allowance for credit losses, bringing the total allowance for credit losses to $21.2 million as of June 30, 2026. For the three months ended June 30, 2026, the Company's estimate of expected credit losses increased primarily due to specific reserves taken on two loans moving to a risk rating of "5" in the quarter, additional specific reserves taken on existing risk rated "5" loans and changes in macroeconomic assumptions employed in determining the Company's model-based general reserve, partially offset by the charge-off of credit loss related to the foreclosure on one "5" risk rated property and the charge-off of credit loss related to the payoff of two "5" risk rated loans.

As of June 30, 2026, we had aggregate specific allowance of credit losses of $17.4 million due to management's: (1) continued identification of one loan collateralized by one multifamily property in Cedar Park, TX (no specific allowance; non-accrual cash basis) with an aggregate unpaid balance of $13.7 million as risk rated "5" due to maturity default; (2) continued identification of three loans collateralized by three multifamily properties in Tampa, FL ($3.2 million specific allowance; non-accrual cash basis), Tallahassee, FL ($3.5 million specific allowance; non-accrual cash basis) and Ypsilanti, MI ($5.9 million specific allowance; non-accrual cash basis) with an aggregate principal balance of $48.3 million as risk rated "5" due to monetary default and (3) identified two loans collateralized by two multifamily properties in Houston, TX ($2.0 million specific allowance; non-accrual cash basis) and Dallas, TX ($2.8 million specific allowance; non-accrual cash basis) with an aggregate principal balance of $36.1 million as risk rated "5" due to monetary default.

As of December 31, 2025, we had aggregate specific allowance of credit losses of $17.6 million due to management's: (1) continued identification of one loan collateralized by two multifamily properties in Philadelphia, PA ($1.3 million specific allowance) with an aggregate unpaid balance of $15.5 million as risk rated "5" due to maturity default; (2) continued identification of one loan collateralized by a multifamily property in Colorado Springs, CO ($2.4 million specific allowance; non-accrual cash basis) with an aggregate unpaid balance of $10.5 million as risk rated "5" due to monetary default; (3) identification of two loans collateralized by two multifamily properties in Arlington, TX ($3.6 million specific allowance; non-accrual cash basis) and Cedar Park, TX (no specific allowance; non-accrual cash basis) with an aggregate unpaid balance of $35.5 million as risk rated "5" due to maturity default and (4) identification of four loans collateralized by four multifamily properties in Des Moines, IA ($0.5 million specific allowance; non-accrual cash basis), Tampa, FL ($0.9 million specific allowance; non-accrual cash basis), Tallahassee, FL ($3.0 million specific allowance; non-accrual cash basis) and Ypsilanti, MI ($5.9 million specific allowance; non-accrual cash basis) with an aggregate principal balance of $55.8 million as risk rated "5" due to monetary default.

We recorded $0.8 million in cash basis income received on non-accrual loans during the year ended December 31, 2025, subsequent to their determination to be risk rated "5" loans and we received $0.3 million of cash proceeds from such loans that were applied as a reduction to the amortized cost basis of the respective loan.

In the first quarter of 2026, the $10.5 million Colorado Springs, CO ($2.4 million specific allowance) loan was foreclosed on, with ownership and deed to the property being taken by a newly formed subsidiary of the Company. The reversal of the $2.4 million specific allowance is reflected as a charge-off to the "Allowance for credit losses" in the consolidated balance sheets.

In the second quarter of 2026, the $22.1 million Arlington, TX ($5.1 million specific allowance, inclusive of $1.5 million taken in the quarter ended June 30, 2026) loan was foreclosed on, with ownership and deed to the property being taken by a newly formed subsidiary of the Company. The reversal of the $5.1 million specific allowance is reflected as a charge-off to the "Allowance for credit losses" in the consolidated balance sheets.

In the second quarter of 2026, the $15.5 million Philadelphia, PA ($1.3 million specific allowance) and the $8.6 million Des Moines, IA ($0.5 million specific allowance) loans were repaid at their respective carrying values. Upon the discounted payoffs, a $1.8 million charge-off was reflected as a charge-off to the "Allowance for credit losses" in the consolidated balance sheets.

Our Manager's asset management team proactively manages the Company's investment portfolio. The asset management team, together with our Manager's underwriting and servicing teams, monitors the credit performance of the investment portfolio, working closely with borrowers to manage all of our positions and monitor financial performance of our collateral assets, including execution of business plans and daily activities within our investment portfolio.

The Company has elected to apply a practical expedient for collateral dependent assets in which the allowance for credit losses is calculated as the difference between the estimated fair value of the underlying collateral, less estimated costs to sell, and the amortized cost basis of the loan. As such, these loans receivable are measured at fair value on a nonrecurring basis using significant unobservable inputs and are classified as Level 3 assets in the fair value hierarchy. The fair value of the underlying collateral is determined using the income approach, market approach, or a combination thereof. The significant unobservable input used for the market approach is the price per unit from a broker opinion of value or appraisal. As of June 30, 2026, the unpaid principal balance of default risk loans was $98.1 million, amortized cost was $80.5 million and fair value was $80.6 million.

The Company may amend or modify a loan depending on the loan's specific facts and circumstances. These loan modifications typically include additional time for a borrower to refinance or sell their property, adjustment or waiver of performance tests that are prerequisite to the extension of a loan maturity, modification of terms of interest rate cap agreements, and/or deferral of scheduled principal payments. In exchange for a modification, we often receive a partial repayment of principal, a cash infusion to replenish interest or capital improvement reserves, termination of all or a portion of the remaining unfunded loan commitment, additional call protection and/or an increase in the loan coupon or additional fees.