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Acquisitions and Divestitures | 12 Months Ended
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Dec. 31, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract] |
Acquisitions and Divestitures | Acquisitions and Divestitures Acquisitions Property Segment - Fundamental On July 23, 2025, we acquired Fundamental Income Properties, LLC (“Fundamental”) by way of merger. The purchase price totaled $2.2 billion, inclusive of $1.3 billion of indebtedness assumed. At acquisition, Fundamental owned 468 properties, spanning 12.3 million square feet across 44 states, 59 industries and 90 tenants. The properties, which consist of retail, industrial and service facilities, are leased under 103 individual and master net operating lease agreements with a 17.1 year weighted-average lease base term. The merger qualified as an asset acquisition based on the provisions of ASC 805. The total purchase price, including capitalized transaction costs and fair value of indebtedness assumed (see Note 21), was allocated to the assets acquired based on their relative fair values determined by a third party appraisal, as follows: properties of $1.8 billion, in-place lease intangible assets of $307.4 million, favorable lease intangible assets of $71.6 million and unfavorable lease liabilities of $32.9 million. Debt assumed included $878.3 million of ABS financing and $400.6 million of revolving secured financing. Refer to Note 11 for further discussion. Investing and Servicing Segment Property Portfolio (“REIS Equity Portfolio”) During the year ended December 31, 2024, we acquired an operating property from a CMBS trust that we consolidate as a VIE for a purchase price of $7.7 million. When properties are acquired from CMBS trusts that are consolidated as VIEs on our balance sheet, the acquisitions are reflected as repayment of debt of consolidated VIEs in our consolidated statements of cash flows. During the years ended December 31, 2025, 2024 and 2023, we had no other significant acquisitions of properties or businesses other than properties acquired through foreclosure or obtaining equity control as discussed in Note 5 and additional properties subsequently acquired by Fundamental as discussed in Note 7. Divestitures Property Segment - Woodstar Fund Asset During the year ended December 31, 2025, we sold one of the 59 properties that comprise the Woodstar Fund. This property was a 264-unit multifamily affordable housing community that we sold at our fair value basis of $56.4 million. Commercial and Residential Lending Segment During the year ended December 31, 2025, we sold an office building in Texas for $60.0 million, which had been acquired via equity control of the related mezzanine borrower entity in May 2022. In 2023, we recorded a $30.1 million impairment on the property. Upon sale, we recognized a net gain of $4.1 million in our consolidated statements of operations, representing: (i) forgiveness of debt totaling $23.5 million, which is reflected as gain on extinguishment of debt, offset by (ii) the excess of our carrying value over sales proceeds of $19.4 million, which is reflected within gain on sale of investments and other assets in our consolidated statement of operations. During the year ended December 31, 2025, we sold an equity interest originally obtained in connection with a 2013 loan origination for gross proceeds of $70.0 million and recognized a gain of $51.4 million. See Note 9 for further discussion. During the year ended December 31, 2025, we sold a unit in a residential conversion project in New York for $5.4 million. During the year ended December 31, 2024, we sold three units in that residential conversion project for $12.1 million. During the year ended December 31, 2023, we sold four units in that residential conversion project for $12.1 million. In connection with these sales, there was no gain or loss recognized in our consolidated statements of operations. Investing and Servicing Segment Property Portfolio During the year ended December 31, 2025, we sold two operating properties for $36.3 million. In connection with these sales, we recognized a total gain of $10.1 million within gain on sale of investments and other assets in our consolidated statement of operations. During the year ended December 31, 2024, we sold an operating property for $18.2 million. In connection with this sale, we recognized a gain of $8.3 million within gain on sale of investments and other assets in our consolidated statement of operations, of which $2.5 million was attributable to non-controlling interests. During the year ended December 31, 2023, we sold four operating properties, including a controlling financial interest in a subsidiary for $63.7 million. We recognized a total gain of $25.6 million within gain on sale of investments and other assets in our consolidated statement of operations, of which $10.2 million related to the deconsolidation of the subsidiary. Property Segment Master Lease Portfolio On February 29, 2024, we sold the 16 retail properties which comprised our Property Segment’s Master Lease Portfolio for a gross sale price of $387.1 million. In connection with the sale, the purchaser assumed the related mortgage debt of $194.9 million, which resulted in net proceeds of $188.0 million after selling costs. We recognized a gain of $92.0 million, which is included within gain on sale of investments and other assets in our consolidated statement of operations for the year ended December 31, 2024, and a $1.2 million loss on extinguishment of debt. Pretax income attributable to the Master Lease Portfolio prior to its sale was $3.3 million and $11.7 million during the years ended December 31, 2024 and 2023, respectively.

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- Definition The entire disclosure for business combinations, including leverage buyout transactions (as applicable), and divestitures. This may include a description of a business combination or divestiture (or series of individually immaterial business combinations or divestitures) completed during the period, including background, timing, and assets and liabilities recognized and reclassified or sold. This element does not include fixed asset sales and plant closings. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/205-20/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 805 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/805/tableOfContent + Details
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