v3.26.3
Debt Obligations (Tables)
 9 Months Ended
Sep. 30, 2026
Debt Disclosure [Abstract]  
Summary of Financings

The following table summarizes our financings as of September 30, 2026 and December 31, 2025 ($ in thousands):

 

 

 

September 30, 2026

 

 

December 31, 2025

 

 

 

Capacity

 

 

Borrowings
 Outstanding

 

 

Weighted
Average
Spread (1)

 

 

Capacity

 

 

Borrowings
Outstanding

 

 

Weighted
Average
Spread(1)

 

Repurchase agreements and term
  participation facility (2)

 

$

3,159,630

 

 

$

1,535,889

 

 

 

+ 2.85%

 

 

$

4,180,546

 

 

$

2,187,066

 

 

 

+ 2.92%

 

Notes payable

 

 

-

 

 

 

-

 

 

 

-

 

 

 

195,830

 

 

 

177,999

 

 

 

+ 3.22%

 

Secured term loan

 

 

500,000

 

 

 

500,000

 

 

 

+ 6.75%

 

 

 

556,188

 

 

 

556,188

 

 

 

+ 4.50%

 

Debt related to real estate owned
  hotel portfolio

 

 

235,000

 

 

 

235,000

 

 

 

+ 3.18%

 

 

 

235,000

 

 

 

235,000

 

 

 

+ 3.18%

 

Total/Weighted Average

 

$

3,894,630

 

 

$

2,270,889

 

 

 

+ 3.74%

 

 

$

5,167,564

 

 

$

3,156,253

 

 

 

+ 3.23%

 

 

 

(1)
Weighted average spread over the applicable benchmark interest rate is based on unpaid principal balance. SOFR as of September 30, 2026 and December 31, 2025 was 3.91% and 3.69%, respectively.
(2)
The repurchase agreements and term participation facility are partially recourse to us. As of September 30, 2026 and December 31, 2025, the weighted average recourse on our repurchase agreements and term participation facility was 30% and 30%, respectively.
Summary of Repurchase Agreements

The following table summarizes our repurchase agreements by lender as of September 30, 2026 ($ in thousands):

 

Lender

 

Initial Maturity

 

Fully
Extended
Maturity(1)

 

Maximum Capacity

 

 

Borrowings
Outstanding and Carrying Value

 

 

Undrawn
Capacity

 

 

Carrying
Value of
Collateral(2)

 

JP Morgan Chase Bank, N.A.

 

7/28/2027

 

7/28/2030

 

$

1,882,487

 

 

$

531,589

 

 

$

1,350,898

 

 

$

980,354

 

JP Morgan Chase Bank, N.A. (3)

 

3/31/2028

 

3/31/2030

 

 

808,636

 

 

 

792,332

 

 

 

16,304

 

 

 

1,069,813

 

Morgan Stanley Bank, N.A.

 

1/26/2027

 

1/26/2028

 

 

250,000

 

 

 

-

 

 

 

250,000

 

 

 

-

 

Total

 

 

 

 

 

$

2,941,123

 

 

$

1,323,921

 

 

$

1,617,202

 

 

$

2,050,167

 

 

 

(1)
Facility maturity dates may be extended, subject to meeting prescribed conditions.
(2)
Net of specific CECL reserves, if any.
(3)
Repurchase agreement specifically provides for the ability to finance (i) loans receivable, including those which may be delinquent or in default, and (ii) real estate owned assets subsequent to assuming legal title and/or physical possession of the collateral property. As of September 30, 2026, (i) $178.6 million of borrowings outstanding on this repurchase agreement relate to our multifamily real estate owned assets, and (ii) the carrying value of collateral for this repurchase agreement includes our multifamily real estate owned assets, related lease intangibles included in other assets, and related below market lease values included in other liabilities on our consolidated balance sheets.

The Wells Fargo Bank, N.A. repurchase agreement was terminated in July 2026 upon reaching maturity in accordance with its terms.

The following table summarizes our repurchase agreements by lender as of December 31, 2025 ($ in thousands):

 

Lender

 

Initial Maturity

 

Fully
Extended
Maturity (1)

 

Maximum Capacity

 

 

Borrowings
Outstanding and Carrying Value

 

 

Undrawn
Capacity

 

 

Carrying Value of Collateral (2)

 

JP Morgan Chase Bank, N.A.

 

7/28/2026

 

7/28/2028

 

$

1,882,487

 

 

$

880,675

 

 

$

1,001,812

 

 

$

1,479,384

 

JP Morgan Chase Bank, N.A.(3)

 

3/31/2028

 

3/31/2030

 

 

948,253

 

 

 

926,939

 

 

 

21,314

 

 

 

1,193,842

 

Morgan Stanley Bank, N.A.

 

1/26/2026

 

1/26/2028

 

 

750,000

 

 

 

50,000

 

 

 

700,000

 

 

 

113,809

 

Wells Fargo Bank, N.A.(4)

 

4/30/2026

 

4/30/2028

 

 

250,000

 

 

 

-

 

 

 

250,000

 

 

 

-

 

Total

 

 

 

 

 

$

3,830,740

 

 

$

1,857,614

 

 

$

1,973,126

 

 

$

2,787,035

 

 

(1)
Facility maturity dates may be extended, subject to meeting prescribed conditions.
(2)
Net of specific CECL reserves, if any.
(3)
Repurchase agreement specifically provides for the ability to finance (i) loans receivable, including those which may be delinquent or in default, and (ii) real estate owned assets subsequent to assuming legal title and/or physical possession of the collateral property. As of December 31, 2025, (i) $195.3 million of borrowings outstanding on this repurchase agreement relate to our multifamily real estate owned assets, and (ii) the carrying value of collateral for this repurchase agreement includes our multifamily real estate owned assets, related lease intangibles included in other assets, and below market lease values included in other liabilities on our consolidated balance sheets.
(4)
In April 2026, we extended the initial maturity of this repurchase agreement to July 29, 2026.
Schedule of Term Participation Facility

Our term participation facility as of September 30, 2026 is summarized as follows ($ in thousands):

 

Contractual
Maturity Date

 

Total
Commitments

 

 

Borrowings
Outstanding and Carrying Value (1)

 

 

Carrying Value
of Collateral (1)

 

12/23/2029

 

$

218,507

 

 

$

211,968

 

 

$

422,919

 

 

(1)
In October 2026, $200.0 million of borrowings outstanding were repaid from proceeds received upon the repayment of an associated loan receivable.

Our term participation facility as of December 31, 2025 is summarized as follows ($ in thousands):

 

Contractual
Maturity Date

 

Total
Commitments

 

 

Borrowings
Outstanding and Carrying Value

 

 

Carrying Value
of Collateral

 

12/23/2029

 

$

349,806

 

 

$

329,452

 

 

$

590,237

 
Summary of Notes Payable

As of September 30, 2026, none of our loans receivable were financed with notes payable. Our notes payable as of December 31, 2025 are summarized as follows ($ in thousands):

 

Contractual
Maturity Date

 

Maximum
Extension Date

 

Borrowing Outstanding

 

 

Carrying
Value

 

 

Carrying Value
of Collateral

 

9/2/2026 (1)

 

9/2/2027

 

$

121,833

 

 

$

121,454

 

 

$

173,239

 

2/2/2026 (2)

 

2/2/2027

 

 

56,166

 

 

 

56,068

 

 

 

53,487

 

Total

 

$

177,999

 

 

$

177,522

 

 

$

226,726

 

 

(1)
In January 2026, this note payable was repaid in full upon the repayment of the associated loan receivable.
(2)
In February 2026, we assigned our right, title, and interest in the loan receivable and collateral property to our financing counterparty in exchange for the full extinguishment of amounts due under the related note payable.
Summary of Secured Term Loan

Our secured term loan as of September 30, 2026 is summarized as follows ($ in thousands):

 

Contractual Maturity Date

 

Stated Rate (1)

 

Interest Rate

 

Borrowing Outstanding

 

 

Carrying Value

 

1/30/2030

 

S + 6.75%

 

10.66%

 

$

500,000

 

 

$

469,947

 

 

(1)
SOFR at September 30, 2026 was 3.91%.

Our prior secured term loan as of December 31, 2025 is summarized as follows ($ in thousands):

 

Contractual Maturity Date

 

Stated Rate (1)

 

Interest Rate

 

Borrowing Outstanding

 

 

Carrying Value

 

8/9/2026

 

S + 4.50%

 

8.29%

 

$

556,188

 

 

$

549,447

 

 

(1)
SOFR at December 31, 2025 was 3.69%.
Summary of additional detail related to the company's real estate owned Hotel portfolio

Our debt related to real estate owned hotel portfolio as of September 30, 2026 is summarized as follows ($ in thousands):

 

Contractual Maturity Date

 

Stated Rate (1)

 

Net Interest Rate (1)

 

Borrowing Outstanding

 

 

Carrying Value

 

6/9/2027

 

S + 3.18%

 

7.09%

 

$

235,000

 

 

$

233,114

 

 

(1)
SOFR at September 30, 2026 was 3.91%, which was below the 6.79% strike rate provided by our interest rate cap. See Note 7 – Derivatives for further detail.

Our debt related to real estate owned hotel portfolio as of December 31, 2025 is summarized as follows ($ in thousands):

 

Contractual Maturity Date

 

Stated Rate (1)

 

Net Interest Rate (1)

 

Borrowing Outstanding

 

 

Carrying Value

 

6/9/2027

 

S + 3.18%

 

6.87%

 

$

235,000

 

 

$

230,992

 

 

(1)
SOFR at December 31, 2025 was 3.69%, which was below the 6.79% strike rate provided by our interest rate cap. See Note 7 – Derivatives for further detail.
Summary of Interest Expense and Amortization

The following table summarizes our interest and amortization expense on our secured financings, debt related to real estate owned hotel portfolio, and secured term loan for the three and nine months ended September 30, 2026 and 2025, respectively ($ in thousands):

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30, 2026

 

 

September 30, 2025

 

 

September 30, 2026

 

 

September 30, 2025

 

Interest expense on secured financings

 

$

22,821

 

 

$

49,442

 

 

$

81,313

 

 

$

177,667

 

Interest expense on secured term loan

 

 

13,364

 

 

 

16,320

 

 

 

39,118

 

 

 

48,543

 

Amortization of deferred financing costs

 

 

3,263

 

 

 

6,077

 

 

 

15,102

 

 

 

16,851

 

Amortization of discount on secured term loan

 

 

843

 

 

 

-

 

 

 

2,255

 

 

 

-

 

Interest and related expense

 

 

40,291

 

 

 

71,839

 

 

 

137,788

 

 

 

243,061

 

Interest expense on debt related to
  real estate owned hotel portfolio (1)

 

 

4,825

 

 

 

5,203

 

 

 

14,320

 

 

 

19,388

 

Interest expense on multifamily real estate owned properties (2)

 

 

3,863

 

 

 

4,213

 

 

 

12,491

 

 

 

4,746

 

Total interest and related expense

 

$

48,979

 

 

$

81,255

 

 

$

164,599

 

 

$

267,195

 

 

(1)
For the three months ended September 30, 2026 and 2025, interest expense on debt related to real estate owned hotel portfolio includes $0.7 million and $0.7 million, respectively, of amortization of deferred financing costs. For the nine months ended September 30, 2026 and 2025, interest expense on debt related to real estate owned hotel portfolio includes $2.1 million and $1.6 million, respectively, of amortization of deferred financing costs.
(2)
Our multifamily real estate owned assets are pledged to certain of our repurchase agreements. Thus, amount excludes any allocation of amortization of deferred financing costs related to such repurchase agreement.