v3.26.3
Loans and Preferred Equity Held for Investment, net (Tables)
 9 Months Ended
Sep. 30, 2026
Receivables [Abstract]  
Schedule of Loans and Preferred Equity Held for Investment, Net
The following table provides a summary of the Company’s loans and preferred equity held for investment, net (dollars in thousands):
September 30, 2026December 31, 2025
Unpaid Principal Balance
Carrying
Value
Weighted Average Coupon(1)
Weighted Average of Contractual Maturity(2)
Weighted Average Maturity in Years(3)
Unpaid Principal Balance
Carrying
Value
Weighted Average Coupon(1)
Weighted Average of Contractual Maturity(2)
Weighted Average Maturity in Years(3)
Variable rate
Senior loans$1,442,147 $1,440,197 7.1 %1.22.4$1,422,235 $1,420,199 6.9 %1.22.6
Securitized loans(4)
1,583,910 1,578,753 6.9 %1.12.71,172,999 1,173,495 7.0 %0.71.3
3,026,057 3,018,950 2,595,234 2,593,694 
Fixed rate
Senior loans28,781 28,781 20.0 %0.0
(5)
0.024,139 24,139 20.0 %0.10.4
Mezzanine loans15,105 15,105 — %0.40.449,069 49,069 8.4 %0.11.1
Preferred equity interests 19,488 19,488 14.3 %0.30.411,467 11,413 14.3 %0.41.0
63,374 63,374 84,675 84,621 
Loans and preferred equity held for investment3,089,431 3,082,324 2,679,909 2,678,315 
CECL reserve— (106,317)— (87,401)
Loans and preferred equity held for investment, net$3,089,431 $2,976,007 7.1 %
1.1
2.5$2,679,909 $2,590,914 7.1 %0.92.0
_________________________________________
(1)Calculated based on contractual interest rate, except for nonaccrual loans. As of September 30, 2026 and December 31, 2025, all variable rate loans utilize Term Secured Overnight Financing Rate (“Term SOFR”).
(2)Calculated using current maturity date.
(3)Calculated using extended maturity date.
(4)Represents loans transferred into securitization trusts that are consolidated by the Company.
(5)The contractual maturity of the fixed rate senior loan was October 9, 2026 at September 30, 2026. The loan was extended subsequent to September 30, 2026.
Schedule of Mortgage Loans on Real Estate
Activity relating to the Company’s loans and preferred equity held for investment, net was as follows (dollars in thousands):
Carrying Value
Nine Months Ended September 30,
20262025
Balance at January 1$2,590,914 $2,352,993 
Acquisitions/originations/additional funding(1)
835,024 356,578 
Loan maturities/principal repayments(1)
(372,061)(243,630)
Increase of CECL reserve(2)
(30,033)(8,144)
Discount accretion and fee amortization, net(4,304)458 
Capitalized interest, net of repayments1,667 1,787 
Transfer to Real Estate, net(3)(4)
(45,200)(243,956)
Charge-off of CECL reserve-transfer to Real Estate, net(3)(4)
— 20,224 
Charge-off of loan held for investment(5)(6)
(11,116)(27,366)
Charge-off of CECL reserve-other(5)(6)
11,116 27,366 
Balance at September 30$2,976,007 $2,236,310 
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(1)During the first quarter of 2025, the Company amended a senior mixed-use loan as part of the resolution of a senior mixed-use loan with the same sponsor. In relation to this amendment, there was a transfer of principal of $8.8 million. This transfer is not included within these captions as it was neither additional funding nor a repayment. Refer to “Loan Modifications” below for more detail. During the nine months ended September 30, 2026, the Company originated 26 loans and preferred equity with a total of $874.4 million in committed principal balance.
(2)Increase of CECL reserve excludes $0.3 million for the nine months ended September 30, 2026 and $0.4 million for the nine months ended September 30, 2025 as determined by the Company’s PD/LGD model for unfunded commitments reported on the consolidated statements of operations, with a corresponding offset to accrued and other liabilities recorded on the Company’s consolidated balance sheets.
(3)During the first quarter of 2026, the Company acquired legal title to one multifamily property through foreclosure. As a result, the property was consolidated as real estate and removed from loans held from investment, net. The CECL reserve related to this loan was charged off in 2025. There was no gain or loss recorded as part of the consolidation. Refer to Note 4, “Real Estate, net” for further discussion.
(4)During the first quarter of 2025, the Company eliminated a multifamily loan in Mesa, Arizona as part of the consolidation of the Mesa, Arizona property as the primary beneficiary. During the second quarter of 2025, the Company foreclosed on a hotel loan in San Jose, California. During the third quarter of 2025, the Company acquired legal title to an office property in Tualatin, Oregon and a multifamily construction/development project in Santa Clara, California. As a result, the properties were consolidated as real estate and removed from loans held from investment, net. The CECL reserve related to these loans were charged off and the net amount is reflected as an addition to real estate, net. There was no gain or loss recorded as part of the consolidation. Refer to Note 4, “Real Estate, net” for further discussion.
(5)During the nine months ended September 30, 2026, the Company charged off uncollectible amounts of $12.2 million relating to three multifamily and one office loan based on resolution of the loans. In addition, the Company had a reversal of charge-offs of $1.1 million based on additional proceeds received upon resolution of an office loan, one industrial loan and one multifamily loan.
(6)During the nine months ended September 30, 2025, the Company charged off uncollectible amounts of $27.4 million relating to two multifamily loans based on resolution of the loans.
Schedule of Aging Summary of Loans
The following table provides an aging summary of loans held for investment at carrying values before CECL reserve (dollars in thousands):
Current or Less Than 30 Days Past Due
30-59 Days Past Due(1)
60-89 Days Past Due
90 Days or More Past Due (2)(3)
Total Loans
September 30, 2026$3,003,248 $63,971 $— $15,105 $3,082,324 
December 31, 20252,641,623 — — 36,692 2,678,315 
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(1)At September 30, 2026, includes two multifamily senior loans with a carrying value of $64.0 million which were in maturity default. In October 2026, the loans were extended to August 2027.
(2)At September 30, 2026, includes one office mezzanine loan which was placed on nonaccrual status on April 1, 2024, with a carrying value of $15.1 million.
(3)At December 31, 2025, includes one industrial senior loan which was placed on nonaccrual status on September 9, 2025, with a carrying value of $22.0 million and an office mezzanine loan which was placed on nonaccrual status on April 1, 2024, with a carrying value of $14.7 million. Subsequent to December 31, 2025, the industrial loan was resolved.
Schedule of Allowance for Loan Losses
The following table provides details on the changes in CECL reserves (dollars in thousands):
CECL reserve at December 31, 2025$87,401 
     Decrease in general CECL reserve(1)
(2,085)
     Increase in specific CECL reserve(2)
2,639 
     Charge-off of CECL reserve - other(2)
(2,639)
CECL reserve at March 31, 2026$85,316 
Increase in general CECL reserve(1)
$13,342 
Increase in specific CECL reserve(2)
987 
Charge-offs of CECL reserve - other(2)
(987)
CECL reserve at June 30, 2026$98,658 
Increase in general CECL reserve(1)
$7,659 
Increase in specific CECL reserve(2)
7,490 
Charge-offs of CECL reserve - other(2)
(7,490)
CECL reserve at September 30, 2026$106,317 
CECL reserve at December 31, 2024$165,932 
Decrease in general CECL reserve(1)
(9,524)
Increase in specific CECL reserve(2)
9,174 
Charge-offs of CECL reserve - other(2)
(9,174)
Charge-offs of CECL reserve - transfer to Real Estate, net and Real Estate Held for Sale(3)
(1,043)
CECL reserve at March 31, 2025$155,365 
Decrease in general CECL reserve$(18,798)
Increase in specific CECL reserve(2)
19,482 
Charge-offs of CECL reserve - other(2)
(18,192)
Charge-offs of CECL reserve - transfer to Real Estate, net and Real Estate Held for Sale(4)
(1,290)
CECL reserve at June 30, 2025$136,567 
Decrease in general CECL reserve(1)
$(9,662)
Increase in specific CECL reserve(2)
17,891 
Charge-offs of CECL reserve-transfer to Real Estate, net and Real Estate Held for Sale(4)
(17,891)
CECL reserve at September 30, 2025$126,905 
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(1)Excludes CECL reserves related to unfunded commitments reported on the consolidated statement of operations for the three months ended March 31, 2026: $1.2 million, June 30, 2026: $(0.8) million and September 30, 2026: $(0.1) million, March 31, 2025: $0.5 million, June 30, 2025: $(0.1) million and September 30, 2025: a de minimis amount.
(2)During the nine months ended September 30, 2026, the Company recorded specific CECL reserves totaling $7.8 million relating to one office senior loan, $2.9 million for one multifamily mezzanine loan, $0.9 million for one multifamily senior loan and $0.6 million for one multifamily senior loan and had reversals of $0.6 million relating to one industrial loan, $0.3 million relating to one multifamily mezzanine loan and $0.2 million relating to one office senior loan. The CECL reserves were charged off during the period. During the nine months ended September 30, 2025, the Company recorded specific CECL reserves totaling $46.5 million for one multifamily loan, one multifamily construction/development loan, one office loan and one hotel loan, all of which were charged off during the nine months ended September 30, 2025. As of September 30, 2025, these properties were classified as real estate, net.
(3)During the first quarter of 2025, the Company consolidated a multifamily loan as the primary beneficiary. As a result, the property was consolidated as real estate. The CECL reserve related to this loan was charged off.
(4)During the second quarter of 2025, the Company consolidated one hotel loan upon foreclosure and during the third quarter of 2025, the Company consolidated one office upon foreclosure. As a result, the property was consolidated as real estate. The CECL reserve related to this loan was charged off.
Summary of Loans and Preferred Equity Held for Investment by Year of Origination and Credit Quality Risk Ranking
The following tables provide a summary by carrying values before any CECL reserves of the Company’s loans and preferred equity held for investment by year of origination and credit quality risk ranking as of September 30, 2026, and December 31, 2025 (dollars in thousands). Refer to Note 2, “Summary of Significant Accounting Policies” for loan risk ranking definitions.
At September 30, 2026, the weighted average risk ranking for loans and preferred equity held for investment was 3.1.
September 30, 2026
Year of Origination
Risk Rankings20262025202420232022 and earlierTotal
Senior loans
3$788,517 $659,669 $85,888 $— $1,331,831 $2,865,905 
4— — — — 181,826 181,826 
Total Senior loans788,517 659,669 85,888 — 1,513,657 3,047,731 
Mezzanine loans
3— — — 15,105 — 15,105 
Total Mezzanine loans— — — 15,105 — 15,105 
Preferred Equity
3728 13,628 — — — 14,356 
4913 4,219 — — — 5,132 
Total Preferred Equity1,641 17,847 — — — 19,488 
Total Loans and preferred equity held for investment$790,158 $677,516 $85,888 $15,105 $1,513,657 $3,082,324 
Current period gross write-offs$— $— $— $— $11,116 $11,116 

As of December 31, 2025, the weighted average risk ranking for loans and preferred equity held for investment was 3.1.
December 31, 2025
Year of Origination
Risk Rankings20252024202320222021 and earlierTotal
Senior loans
3$723,723 $79,019 $— $630,338 $965,963 $2,399,043 
4— — — — 65,123 65,123 
5— — — 88,880 64,787 153,667 
Total Senior loans723,723 79,019 — 719,218 1,095,873 2,617,833 
Mezzanine loans
3— — 14,692 34,377 — 49,069 
Total Mezzanine loans— — 14,692 34,377 — 49,069 
Preferred Equity
310,327 — — — — 10,327 
41,086 — — — — 1,086 
Total Preferred Equity11,413 — — — — 11,413 
Total Loans and preferred equity held for investment$735,136 $79,019 $14,692 $753,595 $1,095,873 $2,678,315 
Current period gross write-offs(1)
$— $— $— $25,137 $77,307 $102,444 
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(1)Current period gross write-offs exclude all transfers to real estate, net.