We originate first mortgage loans secured by middle market transitional commercial real estate, or CRE, which are generally to be held as long term investments. We fund our loan portfolio using cash on hand and advancements under our Secured Financing Facilities, as defined in Note 5. See Note 5 for further information regarding our secured financing agreements.


	As of September 30, 2026			As of December 31, 2025
Number of loans	26			24
Total loan commitments	$	744,532		$	724,458
Unfunded loan commitments (1)	$	37,339		$	36,873
Principal balance	$	707,193		$	687,585

Carrying value	$	694,421		$	676,908
Weighted average coupon rate	7.34		%	7.52		%
Weighted average all in yield (2)	7.80		%	7.92		%
Weighted average floor	2.82		%	2.81		%
Weighted average maximum maturity (years) (3)	3.3			2.6
Weighted average risk rating	3.2			2.8


	Principal Balance		Deferred Fees and Other Items		Amortized Cost
Balance at June 30, 2026	$	722,325	$	(2,691)	$	719,634
Additional funding	3,019		—		3,019
Deferred interest capitalized to loans held for investment	191		—		191
Originations	122,125		(1,571)		120,554
Repayments	(138,967)		—		(138,967)

Write offs	(1,500)		—		(1,500)
Net amortization of deferred fees	—		834		834

Balance at September 30, 2026	$	707,193	$	(3,428)	$	703,765


	Principal Balance		Deferred Fees and Other Items		Amortized Cost
Balance at June 30, 2025	$	632,826	$	(1,508)	$	631,318
Additional funding	822		—		822

Originations	34,500		(548)		33,952
Repayments	(53,801)		(312)		(54,113)

Net amortization of deferred fees	—		445		445


Balance at September 30, 2025	$	614,347	$	(1,923)	$	612,424


	Principal Balance		Deferred Fees and Other Items		Amortized Cost
Balance at December 31, 2025	$	687,585	$	(1,878)	$	685,707
Additional funding	8,444		—		8,444
Deferred interest capitalized to loans held for investment	541		—		541
Originations	252,165		(3,168)		248,997
Repayments	(240,042)		(599)		(240,641)
Write offs	(1,500)		—		(1,500)
Net amortization of deferred fees	—		1,884		1,884
Purchase discount accretion	—		333		333
Balance at September 30, 2026	$	707,193	$	(3,428)	$	703,765


	Principal Balance		Deferred Fees and Other Items		Amortized Cost
Balance at December 31, 2024	$	610,811	$	(895)	$	609,916
Additional funding	6,180		—		6,180
Originations	121,805		(1,862)		119,943
Repayments	(124,449)		(708)		(125,157)
Net amortization of deferred fees	—		1,542		1,542
Balance at September 30, 2025	$	614,347	$	(1,923)	$	612,424


	September 30, 2026					December 31, 2025
Property Type	Number of Loans	Amortized Cost		Percentage of Value		Number of Loans	Amortized Cost		Percentage of Value
Multifamily	4	$	134,534	19	%	3	$	87,920	13	%
Industrial	4	113,361		16	%	4	112,792		16	%
Office	4	95,705		14	%	6	165,745		24	%
Hotel	3	90,207		13	%	4	121,393		18	%
Student Housing	3	79,527		11	%	4	115,575		17	%
Retail	3	68,753		10	%	—	—		—	%
Medical Office	2	47,917		7	%	—	—		—	%
Self Storage	2	39,275		5	%	2	47,990		7	%
Mixed Use	1	34,486		5	%	1	34,292		5	%
	26	$	703,765	100	%	24	$	685,707	100	%


	September 30, 2026					December 31, 2025
Geographic Location	Number of Loans	Amortized Cost		Percentage of Value		Number of Loans	Amortized Cost		Percentage of Value
South	9	$	275,739	39	%	8	$	222,512	32	%
East	8	240,637		34	%	7	223,240		33	%
West	8	163,752		23	%	6	134,741		20	%
Midwest	1	23,637		4	%	3	105,214		15	%
	26	$	703,765	100	%	24	$	685,707	100	%

We evaluate the credit quality of each of our loans at least quarterly by assessing a variety of risk factors in relation to each loan and assigning a risk rating to each loan based on those factors. The higher the number, the greater the risk level. See our 2025 Annual Report for more information regarding our loan risk ratings.


September 30, 2026
Risk Rating	Number of Loans	Percentage of Portfolio		2026		2025		2024		2023		2022		Prior		Total
1	—	—	%	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2	2	9	%	—		63,601		—		—		—		—		63,601
3	18	68	%	251,299		90,979		136,692		—		—		—		478,970
4	5	19	%	—		—		—		—		65,490		71,030		136,520
5	1	4	%	—		—		—		—		—		24,674		24,674
	26	100	%	$	251,299	$	154,580	$	136,692	$	—	$	65,490	$	95,704	$	703,765


December 31, 2025
Risk Rating	Number of Loans	Percentage of Portfolio		2025		2024		2023		2022		2021		Prior		Total
1	3	16	%	$	—	$	57,599	$	—	$	—	$	54,982	$	—	$	112,581
2	2	8	%	27,992		—		28,988		—		—		—		56,980
3	15	59	%	120,576		139,141		25,173		65,510		23,593		26,640		400,633
4	4	17	%	—		—		—		—		115,513		—		115,513
5	—	—	%	—		—		—		—		—		—		—
	24	100	%	$	148,568	$	196,740	$	54,161	$	65,510	$	194,088	$	26,640	$	685,707

We measure our allowance for credit losses using the current expected credit loss, or CECL, model, which is based upon historical experience, current conditions and reasonable and supportable forecasts incorporating forward-looking information that affects the collectability of the reported amount.

The allowance for credit losses is a valuation account that is deducted from the related loans’ amortized cost basis in our condensed consolidated balance sheets. Our loans typically include commitments to fund incremental proceeds to borrowers over the life of the loan; these future funding commitments are also subject to the CECL model. The allowance for credit losses related to unfunded loan commitments is included in accounts payable, accrued liabilities and other liabilities in our condensed consolidated balance sheets.

Given the lack of historical loss data related to our loan portfolio, we estimate our expected losses using an analytical model that considers the likelihood of default and loss given default for each individual loan. This analytical model incorporates data from a third party database with historical loan loss information for commercial mortgage-backed securities, or CMBS, and CRE loans since 1998. We estimate the allowance for credit losses for our portfolio, including unfunded loan commitments, at the individual loan level. Significant inputs to the model include certain loan specific data, such as loan to value, or LTV, property type, geographic location, occupancy, vintage year, remaining loan term, net operating income, expected timing and amounts of future loan fundings and macroeconomic forecast assumptions, including the performance of CRE assets, unemployment rates, interest rates and other factors. We utilize the model to estimate credit losses over a reasonable and supportable economic forecast period of 12 months, followed by a straight-line reversion period of 12 months to average historical losses. Average historical losses are established using a population of third party historical loss data that approximates our portfolio as of the measurement date. We evaluate the estimated allowance for each of our loans individually and we consider our internal loan risk rating as the primary credit quality indicator underlying our assessment.

We have elected to exclude accrued interest receivable from amortized cost and not to measure an allowance for credit losses on accrued interest receivable. Accrued interest receivables are generally written off when payments are 120 days past due. Such amounts are reversed against interest income and no further interest will be recorded until it is collected.

If a loan is determined to be collateral dependent (because the repayment of the loan is expected to be provided substantially through the operation or sale of the underlying collateral property) and the borrower is experiencing financial difficulties, but foreclosure is not probable, we may elect to apply a practical expedient to determine the loan's allowance for credit losses by comparing the collateral's fair value to the amortized cost basis of the loan. For collateral-dependent loans for which foreclosure is probable, the related allowance for credit losses is determined using the fair value of the collateral compared to the loan's amortized cost.

The tables below represent the changes to the allowance for credit losses during the three months ended September 30, 2026 and 2025.


	Loans Held for Investment, net		Unfunded Loan Commitments		Total
Balance at June 30, 2026	$	14,404	$	233	$	14,637
Reversal of credit losses	(3,560)		(40)		(3,600)
Write offs	(1,500)		—		(1,500)


Balance at September 30, 2026	$	9,344	$	193	$	9,537

The decrease in the allowance for credit losses during the three months ended September 30, 2026 is primarily due to the repayment of a loan secured by an office property in Dallas, TX, which had an allowance for credit losses of $6,288 as of June 30, 2026. As a result of the repayment, $4,788 of the allowance was reversed and $1,500 was recorded as a realized loss during the three months ended September 30, 2026. This decrease was partially offset by increased allowances for certain of our “4” rated office loans and allowances for new loan originations during the three months ended September 30, 2026.

We may enter into loan modifications that include, among other changes, extensions of maturity dates, repurposing or required replenishment of reserves, increases or decreases in loan commitments and required pay downs of principal amounts outstanding. Loan modifications are evaluated to determine whether a modification results in a new loan or a continuation of an existing loan under ASC 310.

In August 2026, we entered into a discounted payoff agreement for our loan secured by an office property in Dallas, TX, which had an amortized cost of $44,217 and a risk rating of 4 as of June 30, 2026. In connection with this agreement, the borrower repaid $42,717 of the outstanding principal balance of $44,217, resulting in a realized loss of $1,500. The realized loss is included in (reversal of) provision for credit losses in our condensed consolidated statements of operations during the three months ended September 30, 2026.

In August 2026, we entered into a discounted payoff agreement for our loan secured by an office property in Carlsbad, CA in connection with the pending sale of the underlying collateral. As a result, we determined that the loan was collateral dependent and wrote the loan down to the fair value of the collateral, less estimated costs to sell, of $22,166. Accordingly, we recorded a reversal of credit losses of $224 during the three months ended September 30, 2026 to reduce the allowance for credit losses for this loan to $2,508. As of September 30, 2026, this loan had a risk rating of 5. In October 2026, the borrower repaid approximately $22,100 of the outstanding principal balance.

We did not have any outstanding past due loans or nonaccrual loans as of September 30, 2026 or December 31, 2025. As of September 30, 2026 and October 23, 2026, all of our borrowers had paid their debt service obligations owed and due to us. See our 2025 Annual Report for more information regarding our nonaccrual policy.