Real Estate Owned (Tables)
|
9 Months Ended |
Sep. 30, 2026 |
|---|
| Real Estate Owned, Disclosure of Detailed Components [Abstract] |
|
| Summary of Additional Detail Related to Real Estate Owned Held-for-Investment, Net |
The following table presents additional detail related to our real estate owned held-for-investment, net, as of September 30, 2026 and December 31, 2025 ($ in thousands):
|
|
|
|
|
|
|
|
|
|
|
September 30, 2026 |
|
|
December 31, 2025 |
|
Land |
|
$ |
231,971 |
|
|
$ |
296,373 |
|
Building, building improvements, and site improvements |
|
|
424,604 |
|
|
|
431,905 |
|
Tenant improvements |
|
|
- |
|
|
|
2,318 |
|
Furniture, fixtures and equipment |
|
|
6,689 |
|
|
|
6,140 |
|
Real estate owned held-for-investment |
|
|
663,264 |
|
|
|
736,736 |
|
Less: accumulated depreciation |
|
|
(16,524 |
) |
|
|
(6,731 |
) |
Real estate owned held-for-investment, net |
|
$ |
646,740 |
|
|
$ |
730,005 |
|
|
| Summary of Changes In Real Estate Owned Held-For-Investment, Net |
The following table presents detail related to changes in our real estate owned held-for-investment, net, during the nine months ended September 30, 2026 ($ in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Cost |
|
|
Accumulated Depreciation |
|
|
Real Estate Owned
Held-for-Investment, Net |
|
Total, December 31, 2025 |
|
$ |
736,736 |
|
|
$ |
(6,731 |
) |
|
$ |
730,005 |
|
Foreclosure of multifamily property including capitalized transaction costs |
|
|
59,233 |
|
|
|
- |
|
|
|
59,233 |
|
Capital expenditures |
|
|
8,099 |
|
|
|
- |
|
|
|
8,099 |
|
Sale of multifamily property |
|
|
(47,502 |
) |
|
|
883 |
|
|
|
(46,619 |
) |
Transfer to real estate owned held-for-sale |
|
|
(93,302 |
) |
|
|
2,135 |
|
|
|
(91,167 |
) |
Depreciation expense |
|
|
- |
|
|
|
(12,811 |
) |
|
|
(12,811 |
) |
Total, September 30, 2026 |
|
$ |
663,264 |
|
|
$ |
(16,524 |
) |
|
$ |
646,740 |
|
|
| Schedule of Revenues and Operating Expenses of Real Estate Owned Assets |
The following table presents additional detail related to the revenues and operating expenses of our real estate owned assets ($ in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
September 30, 2026 |
|
|
September 30, 2025 |
|
|
September 30, 2026 |
|
|
September 30, 2025 |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
Hotel portfolio |
$ |
23,704 |
|
|
$ |
22,193 |
|
|
$ |
59,487 |
|
|
$ |
57,808 |
|
Mixed-use property fixed rents |
|
1,305 |
|
|
|
1,569 |
|
|
|
3,923 |
|
|
|
5,664 |
|
Mixed-use property variable rents |
|
136 |
|
|
|
115 |
|
|
|
417 |
|
|
|
323 |
|
Mixed-use property amortization of above and
below market leases, net |
|
- |
|
|
|
(295 |
) |
|
|
(589 |
) |
|
|
(983 |
) |
Mixed-use property straight-line rent adjustment |
|
- |
|
|
|
252 |
|
|
|
401 |
|
|
|
434 |
|
Multifamily properties fixed rents |
|
4,752 |
|
|
|
4,267 |
|
|
|
14,850 |
|
|
|
4,803 |
|
Multifamily properties variable rents |
|
1,459 |
|
|
|
871 |
|
|
|
4,272 |
|
|
|
976 |
|
Multifamily property amortization of
below market leases, net |
|
38 |
|
|
|
37 |
|
|
|
112 |
|
|
|
37 |
|
Total revenue from real estate owned |
$ |
31,394 |
|
|
$ |
29,009 |
|
|
$ |
82,873 |
|
|
$ |
69,062 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
Hotel portfolio |
$ |
14,619 |
|
|
$ |
13,941 |
|
|
$ |
39,917 |
|
|
$ |
39,251 |
|
Mixed-use property |
|
531 |
|
|
|
934 |
|
|
|
1,500 |
|
|
|
3,776 |
|
Multifamily properties |
|
6,874 |
|
|
|
3,614 |
|
|
|
18,868 |
|
|
|
4,073 |
|
Land |
|
192 |
|
|
|
- |
|
|
|
535 |
|
|
|
- |
|
Total operating expenses from real estate owned |
$ |
22,216 |
|
|
$ |
18,489 |
|
|
$ |
60,820 |
|
|
$ |
47,100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
Hotel portfolio |
$ |
4,825 |
|
|
$ |
5,203 |
|
|
$ |
14,320 |
|
|
$ |
19,388 |
|
Multifamily properties (1) |
|
3,863 |
|
|
|
4,213 |
|
|
|
12,491 |
|
|
|
4,746 |
|
Total interest expense from real estate owned (2) |
$ |
8,688 |
|
|
$ |
9,416 |
|
|
$ |
26,811 |
|
|
$ |
24,134 |
|
(1)Such assets are pledged to certain of our repurchase agreements and, accordingly, excludes any allocation of amortization of deferred financing costs related to such repurchase agreement. (2)During the three and nine months ended September 30, 2026 and 2025, our mixed-use and land real estate owned assets were unlevered.
|
| Schedule of Allocated Fair Value of Assets Acquired and Liabilities Assumed |
In accordance with ASC 805, we allocated the fair value of assets acquired and liabilities assumed, if any, in connection with the above-mentioned mortgage foreclosures as follows ($ in thousands):
|
|
|
|
|
|
|
|
|
|
|
Dallas,
TX |
|
Dallas,
TX |
|
|
|
Foreclosure Date |
January 2026 |
|
May 2026 |
|
Total |
|
Land |
$ |
5,549 |
|
$ |
3,772 |
|
$ |
9,321 |
|
Building |
|
28,632 |
|
|
16,040 |
|
|
44,672 |
|
Site improvements |
|
1,471 |
|
|
1,733 |
|
|
3,204 |
|
Furniture, fixtures and equipment |
|
852 |
|
|
525 |
|
|
1,377 |
|
In-place lease values (1) |
|
896 |
|
|
330 |
|
|
1,226 |
|
Total |
$ |
37,400 |
|
$ |
22,400 |
|
$ |
59,800 |
|
(1)Included within other assets on our consolidated balance sheets.
|
| Schedule of Additional Detail of Acquired Assets and Assumed Liabilities |
The following table presents additional detail of the assets acquired and liabilities assumed in connection with the above-mentioned mortgage foreclosures ($ in thousands):
|
|
|
|
|
|
|
|
|
|
|
Dallas,
TX |
|
Dallas,
TX |
|
|
|
Foreclosure Date |
January 2026 |
|
May 2026 |
|
Total |
|
Assets |
|
|
|
|
|
|
Cash |
$ |
261 |
|
$ |
109 |
|
$ |
370 |
|
Restricted cash |
|
1,672 |
|
|
1,377 |
|
|
3,049 |
|
Real estate owned |
|
36,504 |
|
|
22,070 |
|
|
58,574 |
|
In-place lease values (1) |
|
896 |
|
|
330 |
|
|
1,226 |
|
Other assets |
|
359 |
|
|
160 |
|
|
519 |
|
Total assets |
|
39,692 |
|
|
24,046 |
|
|
63,738 |
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
Other liabilities |
$ |
3,138 |
|
$ |
1,349 |
|
$ |
4,487 |
|
Total liabilities |
|
3,138 |
|
|
1,349 |
|
|
4,487 |
|
|
|
|
|
|
|
|
Equity |
|
36,554 |
|
|
22,697 |
|
|
59,251 |
|
Carrying value of loan prior to charge-offs (2) |
|
(76,453 |
) |
|
(25,372 |
) |
|
(101,825 |
) |
Accrued interest receivable |
|
- |
|
|
(390 |
) |
|
(390 |
) |
Charge-off |
$ |
(39,899 |
) |
$ |
(3,065 |
) |
$ |
(42,964 |
) |
(1)Included within other assets on our consolidated balance sheets. (2)Represents carrying value of each loan prior to specific CECL reserves and principal charge-offs recognized in connection with the mortgage foreclosures. Total amount is net of $0.2 million of unamortized fees.
|
| Schedule of Future Minimum Fixed Rents under Non-Cancellable Leases |
the future minimum fixed rents under our non-cancellable leases for each of the next five years and thereafter are as follows ($ in thousands):
|
|
|
|
|
Year |
|
Amount |
|
2026(1) |
|
$ |
1,411 |
|
2027 |
|
|
5,634 |
|
2028 |
|
|
5,742 |
|
2029 |
|
|
6,472 |
|
2030 |
|
|
6,522 |
|
Thereafter |
|
|
29,894 |
|
Total |
|
$ |
55,675 |
|
(1)Contractual lease payments due for the remaining three months of 2026.
|
| Schedule of Lease Intangibles |
As of September 30, 2026 and December 31, 2025, our lease intangibles are comprised of the following ($ in thousands):
|
|
|
|
|
|
|
|
|
Intangible |
|
September 30, 2026 |
|
|
December 31, 2025 |
|
In-place, above market, and other lease values |
|
$ |
7,455 |
|
|
$ |
28,383 |
|
Less: accumulated amortization |
|
|
(6,512 |
) |
|
|
(8,632 |
) |
In-place, above market, and other lease values, net (1) |
|
$ |
943 |
|
|
$ |
19,751 |
|
|
|
|
|
|
|
|
Below market lease values |
|
$ |
(403 |
) |
|
$ |
(4,612 |
) |
Less: accumulated amortization |
|
|
187 |
|
|
|
1,016 |
|
Below market lease values, net (2) |
|
$ |
(216 |
) |
|
$ |
(3,596 |
) |
(1)Included within other assets on our consolidated balance sheets. (2)Included within other liabilities on our consolidated balance sheets.
|
| Schedule Of Amortization Of Our Lease Intangibles |
Amortization of our lease intangibles for the three and nine months ended September 30, 2026 and 2025 is as follows ($ in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
Intangible |
|
September 30, 2026 |
|
|
September 30, 2025 |
|
|
September 30, 2026 |
|
|
September 30, 2025 |
|
In-place and other lease values (1) |
|
$ |
375 |
|
|
$ |
1,822 |
|
|
$ |
4,156 |
|
|
$ |
2,462 |
|
Above market lease values (2) |
|
|
- |
|
|
|
(391 |
) |
|
|
(779 |
) |
|
|
(1,267 |
) |
Below market lease values (2) |
|
|
38 |
|
|
|
133 |
|
|
|
302 |
|
|
|
321 |
|
(1)Amortization of in-place and other lease values is recognized in depreciation and amortization expense on our consolidated statements of operations. (2)Amortization of above and below market lease values, net is recognized in revenue from real estate owned on our consolidated statements of operations.
|
| Estimated Amortization of Intangibles for Next Five Years |
As of September 30, 2026, the estimated amortization of our lease intangibles related to real estate owned held-for-investment is approximately as follows ($ in thousands):
|
|
|
|
|
|
|
|
|
|
|
In-place and Other
Lease Values (1) |
|
|
Below Market
Lease Values (2) |
|
2026 (3) |
|
$ |
375 |
|
|
$ |
38 |
|
2027 |
|
|
385 |
|
|
|
151 |
|
2028 |
|
|
183 |
|
|
|
27 |
|
2029 |
|
|
- |
|
|
|
- |
|
2030 |
|
|
- |
|
|
|
- |
|
Thereafter |
|
|
- |
|
|
|
- |
|
Total |
|
$ |
943 |
|
|
$ |
216 |
|
(1)Amortization of in-place and other lease values is recognized in depreciation and amortization expense on our consolidated statements of operations. (2)Amortization of below market lease values is recognized in revenue from real estate owned on our consolidated statements of operations. (3)Amortization of lease intangibles for the remaining three months of 2026.
|