v3.26.3
Real Estate Owned (Tables)
 9 Months Ended
Sep. 30, 2026
Real Estate Owned, Disclosure of Detailed Components [Abstract]  
Schedule of REO Asset Acquired on the Acquisition Date The Company allocated the fair value of the assets acquired on the acquisition date as follows (dollars in thousands):
Fair Value Allocation
Building and building improvements$22,362 
Land and land improvements7,774 
Total$30,136 
The following table presents the REO assets and liabilities (dollars in thousands):
September 30, 2026December 31, 2025
Assets
Cash$20,784 $18,018 
Real estate owned - Building and building improvements200,058 172,724 
Real estate owned - Land and land improvements62,618 54,845 
Real estate owned - Tenant improvements10,520 9,113 
Real estate owned273,196 236,682 
Accumulated depreciation(17,983)(12,296)
Real estate owned, net255,213 224,386 
In-place lease intangibles, net(1)
8,913 10,687 
Above-market lease intangibles, net(1)
1,368 1,685 
Leasing commissions, net(1)
2,536 2,748 
Other assets, net(1)
10,829 9,555 
Total assets$299,643 $267,079 
Liabilities
Mortgage loans payable, net(2)
$59,950 $30,838 
Below-market lease intangibles, net(3)
1,345 1,763 
Other liabilities(3)
6,794 8,453 
Total liabilities$68,089 $41,054 
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(1)Included within Other assets within the Company's consolidated balance sheets. Other assets, net includes $2.4 million and $3.7 million of cash proceeds from the Company's mortgage loan payable escrowed for tenant improvements and leasing costs, and other working capital balances as of September 30, 2026 and December 31, 2025, respectively.
(2)During the three and nine months ended September 30, 2026, the Company incurred interest expense of $0.6 million and $1.9 million, respectively, which is included within Interest expense on the Company's consolidated statements of income and comprehensive income. During the three and nine months ended September 30, 2025, the Company incurred interest expense of $0.6 million and $1.9 million, respectively, which is included within Interest expense on the Company's consolidated statements of income and comprehensive income.
(3)Included within Accrued expenses and other liabilities within the Company's consolidated balance sheets. Other liabilities includes $0.2 million and $0.2 million of accrued interest payable as of September 30, 2026 and December 31, 2025, respectively, which is included within Accrued interest payable within the Company's consolidated balance sheets.
Schedule of Real Estate Owned, Revenue and Expenses
The following table presents the REO operations and related income (loss) (dollars in thousands):
Three Months EndedNine Months Ended
September 30, 2026September 30, 2025September 30, 2026September 30, 2025
Rental income
Minimum lease payments$6,917 $6,722 $20,539 $21,753 
Variable lease payments952 1,163 3,023 2,518 
Total rental income7,869 7,885 23,562 24,271 
Other revenue from REO209 71 1,885 2,195 
Revenue from real estate owned operations8,078 7,956 25,447 26,466 
Rental property operating expenses(1)
6,032 5,581 16,368 18,772 
Depreciation and amortization(2)
2,477 2,712 7,676 10,127 
Expenses from real estate owned operations8,509 8,293 24,044 28,899 
Net income (loss) from REO$(431)$(337)$1,403 $(2,433)
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(1)Excludes $0.6 million and $1.9 million, respectively, of interest expense incurred during the three and nine months ended September 30, 2026, which is included within Interest expense on the Company's consolidated statements of income and comprehensive income. Excludes $0.6 million and $1.9 million, respectively, of interest expense incurred during the three and nine months ended September 30, 2025, which is included within Interest expense on the Company's consolidated statements of income and comprehensive income.
(2)During the three and nine months ended September 30, 2026, the Company incurred $1.9 million and $5.7 million, respectively, of depreciation expense. During the three and nine months ended September 30, 2025, the Company incurred $1.7 million and $5.9 million, respectively, of depreciation expense.
Schedule of Amortization of Lease Intangibles
The following table presents the gross carrying amount and accumulated amortization of lease intangibles (dollars in thousands):
September 30, 2026December 31, 2025
Intangible assets:
In-place lease intangibles$25,165 $25,165 
Above-market lease intangibles2,670 2,670 
Leasing commissions3,170 3,164 
Total intangible assets31,005 30,999 
Accumulated amortization:
In-place lease intangibles(16,252)(14,478)
Above-market lease intangibles(1,302)(985)
Leasing commissions(634)(416)
Total accumulated amortization(18,188)(15,879)
Intangible assets, net$12,817 $15,120 
Intangible liabilities:
Below-market lease intangibles$4,311 $4,311 
Total intangible liabilities4,311 4,311 
Accumulated amortization:
Below-market lease intangibles(2,966)(2,548)
Total accumulated amortization(2,966)(2,548)
Intangible liabilities, net$1,345 $1,763 
Schedule of Estimated Future Amortization
The following table presents the estimated future amortization of the Company's intangibles for each of the next five years (dollars in thousands):
YearIn-place lease intangiblesAbove-market lease intangiblesLeasing
commissions		Below-market lease intangibles
2026 (remaining)$399 $103 $92 $(74)
20271,315 374 374 (297)
20281,266 368 352 (289)
2029872 110 340 (202)
2030731 58 329 (142)
2031631 56 284 (73)
Schedule of Estimated Future Amortization
The following table presents the estimated future amortization of the Company's intangibles for each of the next five years (dollars in thousands):
YearIn-place lease intangiblesAbove-market lease intangiblesLeasing
commissions		Below-market lease intangibles
2026 (remaining)$399 $103 $92 $(74)
20271,315 374 374 (297)
20281,266 368 352 (289)
2029872 110 340 (202)
2030731 58 329 (142)
2031631 56 284 (73)
Schedule of Future Minimum Lease Payments The following table presents approximate future minimum rental income under non-cancelable operating leases, excluding variable lease revenue of tenant reimbursements, to be received over the next five years and thereafter as of September 30, 2026 and excludes leases at the Company's multifamily properties as they are short term, generally 12 months or less (dollars in thousands):
YearFuture Minimum Rents
2026 (remaining)$2,514 
20279,551 
20288,099 
20295,558 
20308,738 
20318,852 
Thereafter53,814 
Total$97,126