Real Estate Loans, net

12 Months Ended

Dec. 31, 2025

5. Real estate loans, net

As discussed in Note 1, the Company entered into the Rockford Loan during the year ended December 31, 2023 and the entire $150 million commitment was drawn as of December 31, 2025. The Rockford Loan had a 10% interest rate and a maximum outstanding period of up to 6 years (5-year initial term with a 1-year extension). On January 1, 2025, the Company amended the terms of the Rockford Loan to reduce the interest rate to 8% with a maturity date of June 30, 2026, subject to a 6 month extension.

The Company also entered into the Ione Loan for up to $110.0 million, of which $56.6 million and $15.1 million was drawn as of December 31, 2025 and December 31, 2024, respectively .

Finally, the Company entered into the Dry Creek Loan on December 4, 2025, and $45.3 million was drawn as of December 31, 2025. The term loan B was issued at an original issue discount of 3% and bears interest at SOFR plus 900 basis points, subject to a SOFR floor of 1%. Each term loan has a maturity of 6 years.

The following is a summary of the balances of the Company's Real estate loans, net.


	December 31, 2025		December 31, 2024
	(in thousands)		(in thousands)
Real estate loans (1)	$	250,515	$	165,160
Less: Allowance for credit losses	(2,516)		(4,570)
Real estate loans, net	$	247,999	$	160,590

(1) Includes an unearned discount of $1.4 million as of December 31, 2025.

The change in the allowance for credit losses for the Company's Real estate loans is shown below (in thousands):


	Rockford Loan		Ione Loan		Dry Creek Loan		Total
Balance at December 31, 2023	$	(964)	$	—	$	—	$	(964)
Change in allowance	(3,523)		(83)		—		(3,606)
Balance at December 31, 2024	(4,487)		(83)		—		(4,570)
Change in allowance	3,208		(316)		(838)		2,054
Ending balance at December 31, 2025	$	(1,279)	$	(399)	$	(838)	$	(2,516)

The amortized cost basis of the Company's real estate loans, financing receivables by year of origination is shown below as of December 31, 2025 (in thousands):


Origination year	Real estate loans		Allowance for credit losses		Amortized cost basis at December 31, 2025		Allowance as a percentage of outstanding real estate loans

2025	$	43,911	$	(838)	$	43,073	(1.91)	%
2024	$	56,604	$	(399)	$	56,205	(0.70)	%
2023	$	150,000	$	(1,279)	$	148,721	(0.85)	%
Total	$	250,515	$	(2,516)	$	247,999	(1.00)	%

The real estate loans are subject to CECL, which is described in Note 7. The Company recorded a benefit of $2.1 million and a provision of $3.6 million to the allowance for credit losses for the year ended December 31, 2025 and December 31, 2024, respectively on the Company's real estate loans. Additionally, the Company recorded a provision of $16.3 million and a benefit of $2.1 million for the year ended December 31, 2025 and December 31, 2024, respectively, on unfunded loan commitments. The reserve for the unfunded loan commitment is recorded in other liabilities on the Consolidated Balance Sheets and totaled $16.8 million and $0.5 million at December 31, 2025 and December 31, 2024, respectively. The increase in unfunded loan commitment reserves is the establishment of reserves on the Virginia Live! development project. The Company's borrowers are current on their loan obligations as of December 31, 2025.