Real Estate Owned (Tables)

9 Months Ended

Sep. 30, 2026

Schedule of Real Estate Owned, Held For Investment

The following table summarizes the Company's real estate owned, held for investment assets as of September 30, 2026 and December 31, 2025 (dollars in thousands):


			As of September 30, 2026
Acquisition Date	Property Type	Primary Location(s)	Land		Building and Improvements		Furniture, Fixtures and Equipment		Accumulated Depreciation		Real Estate Owned, net
September 2021(1)	Industrial	Jeffersonville, GA	$	3,436	$	84,259	$	2,929	$	(11,509)	$	79,115
August 2023	Office	Portland, OR	16,479		2,065		—		(159)		18,385
April 2025(4)	Multifamily	Austin, TX	7,950		16,700		—		(35)		24,615
June 2026(2)	Multifamily	Huntersville, NC	8,000		62,007		—		—		70,007
September 2026(3)	Multifamily	Durham, NC	6,100		22,058		868		(79)		28,947
September 2026(3)	Multifamily	Durham, NC	8,448		29,110		1,208		(122)		38,644
Total			$	50,413	$	216,199	$	5,005	$	(11,904)	$	259,713

________________________

See notes below.


			As of December 31, 2025
Acquisition Date	Property Type	Primary Location(s)	Land		Building and Improvements		Furniture, Fixtures and Equipment		Accumulated Depreciation		Real Estate Owned, net
September 2021(1)	Industrial	Jeffersonville, GA	$	3,436	$	84,259	$	2,929	$	(9,783)	$	80,841
August 2023	Office	Portland, OR	16,479		2,065		—		(120)		18,424
Total			$	19,915	$	86,324	$	2,929	$	(9,903)	$	99,265

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(1) The Company and an affiliate of the Company entered into a joint venture agreement and formed a joint venture entity, Jeffersonville Member, LLC (the “Jeffersonville JV”) to acquire a triple net lease property in Jeffersonville, GA. Refer to Note 18 - Related Party Transactions and Arrangements for details.

(2) During the second quarter, the Company obtained the property through foreclosure and classified it as construction-in-progress. For the three and nine months ended September 30, 2026, the Company recognized a $0.2 million loss and $9.5 million gain, respectively, within Gain/(loss) on other real estate investments in the consolidated financial statements of operations, primarily related to a fair value adjustment as of the acquisition date.

(3) These properties previously collateralized one commercial mortgage loan. The Company recognized a $0.3 million loss, within Gain/(loss) on other real estate investments in the consolidated financial statements of operations, primarily related to the foreclosures of these properties.

(4) The Company reclassified the property from held for sale to held for investment in the third quarter. For the three and nine months ended September 30, 2026, the Company recognized a $10.1 million and $9.9 million loss, respectively, within Gain/(loss) on other real estate investments in the consolidated financial statements of operations, primarily related to a fair value adjustment as of the reclassification date.

Schedule of Real Estate Owned, Held For Sale

The following table summarizes the Company's real estate owned, held for sale assets and liabilities as of September 30, 2026 and December 31, 2025 (dollars in thousands):


		As of September 30, 2026
Property Type	Primary Location(s)	Assets, Net		Liabilities, Net
Office(1)	Denver, CO	$	16,328	$	1,105
Multifamily(2)	Various	146,347		3,929
Total		$	162,675	$	5,034

____________________

See notes below.


		As of December 31, 2025
Property Type	Primary Location(s)	Assets, Net		Liabilities, Net
Office(1)	Denver, CO	$	17,267	$	1,321
Multifamily(2)	Various	180,942		3,911
Retail(3)	Various	2,980		217
Total		$	201,189	$	5,449

________________________

(1) During the three and nine months ended September 30, 2026, the Company recognized a net loss of $0.2 million and $1.6 million, respectively, included within Gain/(loss) on other real estate investments in the Company's consolidated financial statements of operations primarily related to the fair value write-down of this property.

(2) As of September 30, 2026, the Company's real estate owned, held for sale assets included four multifamily properties that previously collateralized four commercial mortgage loans. During the three and nine months ended September 30, 2026, the Company recognized a net loss of $2.0 million and $6.7 million, respectively, included within Gain/(loss) on other real estate investments in the Company's consolidated financial statements of operations, primarily related to fair value write-downs and sale of these properties.

(3) In November 2022, the Company and an affiliate of the Company entered into a joint venture agreement and formed a joint venture entity, BSPRT Walgreens Portfolio, LLC (the "Walgreens JV") to assume a group of 24 retail properties with various locations throughout the United States (the "Walgreens Portfolio"). Refer to Note 18 - Related Party Transactions and Arrangements. The Company sold the final property within the Walgreens Portfolio during the first quarter of 2026. As a result, the Company did not record a loss for the three months ended September 30, 2026 but recorded a $0.5 million loss for the nine months ended September 30, 2026 included within Gain/(loss) on other real estate investments in the Company's consolidated financial statements of operations.