Multi-family Loans, at Fair Value (Tables)

9 Months Ended

Sep. 30, 2026

Multi-family loans consist of the following as of September 30, 2026 and December 31, 2025, respectively (dollar amounts in thousands):


	September 30, 2026		December 31, 2025
Investment amount	$	37,103	$	59,102
Unrealized losses, net	(235)		(3,626)
Total, at Fair Value	$	36,868	$	55,476

During the nine months ended September 30, 2025, the Company invested in subordinated securities issued by a Freddie Mac-sponsored residential loan securitization, resulting in the initial consolidation of the VIE as shown below (dollar amounts in thousands):


	For the Nine Months Ended September 30, 2025
Residential loans, at fair value	$	247,405
Collateralized debt obligations, at fair value	(235,226)
Net investment	$	12,179

The following tables present condensed statements of operations for non-Company-sponsored VIEs for the three and nine months ended September 30, 2026 and 2025, respectively (dollar amounts in thousands). Intercompany balances have been eliminated for purposes of this presentation.


	For the Three Months Ended September 30,
	2026						2025
	Consolidated SLST		Consolidated Real Estate		Total		Consolidated SLST		Consolidated Real Estate		Total
Interest income	$	13,272	$	—	$	13,272	$	14,306	$	—	$	14,306
Interest expense	10,705		—		10,705		11,199		—		11,199
Total net interest income	2,567		—		2,567		3,107		—		3,107

Income from real estate	—		11,027		11,027		—		17,123		17,123
Expenses related to real estate	—		13,456		13,456		—		19,943		19,943
Total net loss from real estate	—		(2,429)		(2,429)		—		(2,820)		(2,820)


Unrealized (losses) gains, net	(11,638)		—		(11,638)		2,440		—		2,440
Gains on derivative instruments, net	—		148		148		—		8		8


Other income	—		37		37		—		138		138
Total other (loss) income	(11,638)		185		(11,453)		2,440		146		2,586



Net (loss) income	(9,071)		(2,244)		(11,315)		5,547		(2,674)		2,873
Net loss attributable to non-controlling interest in Consolidated VIEs	—		2,996		2,996		—		5,035		5,035
Net (loss) income attributable to Company	$	(9,071)	$	752	$	(8,319)	$	5,547	$	2,361	$	7,908


	For the Nine Months Ended September 30,
	2026						2025
	Consolidated SLST		Consolidated Real Estate		Total		Consolidated SLST		Consolidated Real Estate		Total
Interest income	$	40,758	$	—	$	40,758	$	36,936	$	—	$	36,936
Interest expense	32,790		—		32,790		26,592		—		26,592
Total net interest income	7,968		—		7,968		10,344		—		10,344

Income from real estate	—		35,507		35,507		—		53,999		53,999
Expenses related to real estate	—		41,622		41,622		—		60,631		60,631
Total net loss from real estate	—		(6,115)		(6,115)		—		(6,632)		(6,632)

Realized losses, net	(106)		—		(106)		—		—		—
Unrealized (losses) gains, net	(13,593)		—		(13,593)		11,225		—		11,225
Gains on derivative instruments, net	—		479		479		—		54		54
Impairment of real estate	—		—		—		—		(7,180)		(7,180)
Other income	—		51,719		51,719		—		141		141
Total other (loss) income	(13,699)		52,198		38,499		11,225		(6,985)		4,240



Net (loss) income	(5,731)		46,083		40,352		21,569		(13,617)		7,952
Net (income) loss attributable to non-controlling interest in Consolidated VIEs	—		(32,840)		(32,840)		—		14,231		14,231
Net (loss) income attributable to Company	$	(5,731)	$	13,243	$	7,512	$	21,569	$	614	$	22,183

Schedule of Preferred Equity and Mezzanine Loans, Fair Value Compared to Unpaid Principal

The table below presents the fair value and aggregate unpaid principal balance of the Company's multi-family loan in non-accrual status as of December 31, 2025 (dollar amounts in thousands):



Days Late	Fair Value (1)		Unpaid Principal Balance



90 +	$	—	$	3,363

(1)As of December 31, 2025, the Company reduced the fair value of the multi-family loan to zero as a result of developments with respect to the property, its financing and market conditions. The property was subject to a deed-in-lieu of foreclosure during the nine months ended September 30, 2026, which terminated the Company's preferred equity investment and resulted in a reversal of an unrealized loss and a corresponding realized loss of approximately $3.4 million for the nine months ended September 30, 2026.

Schedule of Geographic Concentration of Credit Risk Exceeding 5% of Balances

The geographic concentrations of credit risk exceeding 5% of the unpaid principal balance of residential loans, at fair value as of September 30, 2026 and December 31, 2025, respectively, are as follows:


	September 30, 2026						December 31, 2025
	Residential loans		Consolidated SLST		Residential loans held in securitization trusts		Residential loans		Consolidated SLST		Residential loans held in securitization trusts
California	11.8	%	11.3	%	8.0	%	3.4	%	11.2	%	16.8	%
Florida	8.5	%	8.6	%	7.0	%	7.0	%	8.6	%	10.1	%
New Jersey	8.2	%	6.3	%	7.4	%	8.9	%	6.3	%	6.4	%
Texas	8.0	%	4.4	%	6.2	%	5.2	%	4.4	%	6.7	%
Pennsylvania	7.0	%	3.8	%	8.4	%	10.1	%	3.8	%	5.5	%
Ohio	5.1	%	3.4	%	7.5	%	10.7	%	3.5	%	3.9	%
Illinois	4.9	%	7.4	%	3.3	%	3.6	%	7.4	%	3.3	%
New York	4.3	%	10.9	%	7.2	%	6.7	%	10.7	%	6.6	%

The geographic concentrations of credit risk exceeding 5% of the unpaid principal balance of residential loans held for sale, at fair value as of September 30, 2026 and December 31, 2025, respectively, are as follows:


	September 30, 2026		December 31, 2025
New Jersey	12.2	%	9.2	%
Pennsylvania	11.9	%	7.2	%
Ohio	9.7	%	13.8	%
Texas	7.7	%	8.9	%
New York	6.3	%	11.9	%
Michigan	5.1	%	3.5	%

The geographic concentrations of credit risk exceeding 5% of the total multi-family loan investment amounts as of September 30, 2026 and December 31, 2025, respectively, are as follows:


	September 30, 2026		December 31, 2025
Texas	86.4	%	57.8	%
Indiana	13.6	%	8.5	%
Florida	—		18.6	%
Arkansas	—		9.3	%
Pennsylvania	—		5.7	%

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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