| Summary of notes receivable, net |
The following table summarizes our Notes receivable, net as of September 30, 2026 and December 31, 2025 (dollars in thousands): | | | | | | | | | | | Interest rate at | | Balance Outstanding (a) | | | September 30, | | September 30, | | December 31, | | | 2026 | | 2026 | | 2025 | Note due December 2026 (b) | | — | % | $ | — | | $ | 79,889 | Note due June 2027 (c) | | 18.00 | % | | 5,503 | | | 4,815 | Note due September 2027 (d) | | — | % | | — | | | 33,812 | Note due December 2028 (e) | | 11.00 | % | | 35,048 | | | 32,054 | Note due February 2031 (f) | | 7.75 | % | | 50,318 | | | — | Notes receivable | | | | | 90,869 | | | 150,570 | Allowance for credit losses | | | | | (389) | | | (591) | Total notes receivable, net | | | | $ | 90,480 | | $ | 149,979 |
| (a) | Outstanding note amounts include any accrued and unpaid interest, as applicable. |
| (b) | The Company had a secured mezzanine loan with a third party developer of a 483 apartment home community located in Riverside, California, which was completed in 2026, with an aggregate commitment of $59.7 million (exclusive of accrued and unpaid interest), all of which had been funded. Interest payments accrued and were due at maturity of the loan. In September 2026, the Company acquired the operating community by repaying the joint venture’s first mortgage loan and obtaining the developer’s interest through a deed in lieu of foreclosure. Concurrent |
| with the acquisition, the loan and accrued interest were settled in full through the receipt of the operating community's ownership interests. (See Note 3, Real Estate Owned for more information) |
| (c) | The Company and a syndicate of lenders previously entered into a $19.0 million secured credit facility with an unaffiliated third party. The Company’s commitment is $3.0 million (exclusive of accrued interest), all of which has been funded. Interest payments accrue and are due at maturity of the facility. The facility is secured by substantially all of the borrower’s assets and matures at the earliest of the following: (a) acceleration in the event of default; or (b) June 2027. |
| (d) | In September 2024, the Company entered into a $31.1 million secured mortgage loan with one of its joint ventures that owned a 66 apartment home operating community located in Santa Monica, California, in which the Company also held a preferred investment. In June 2026, the Company acquired the operating community. Concurrent with the acquisition, the loan and accrued interest were settled through the receipt of the operating community's ownership interests. (See Note 3, Real Estate Owned for more information). |
| (e) | The Company has a secured mezzanine loan with a third party developer of a 237 apartment home community located in Menifee, California, which was completed in 2025, with an aggregate commitment of $24.8 million (exclusive of accrued and unpaid interest), all of which has been funded. Interest payments accrue and are due at maturity of the loan. In 2026, the maturity date of the note was extended to December 31, 2028. The secured mezzanine loan previously had a scheduled maturity date in December 2026. In August 2026, the Company entered into an agreement with the borrower to obtain the operating community by deed-in-lieu of foreclosure. Under the agreement, the Company will acquire the community and repay its $63.6 million first mortgage loan, and the secured mezzanine loan, including accrued interest, will be settled. The acquisition is expected to close in 2027, subject to customary closing conditions. |
| (f) | In May 2026, the Company entered into a $50.0 million secured mezzanine loan with its joint venture partner of five operating communities with 710 apartment homes located in New York, New York, with an aggregate commitment of $50.0 million, all of which was funded as of September 30, 2026. The loan investment's effective interest rate is approximately 8.0%, including the impact of the loan origination fee. Interest payments are paid monthly. The secured mezzanine loan has a scheduled maturity date in February 2031. (See Note 5, Joint Ventures and Partnerships for more information). |
|