
	Carrying Value as of
	December 31, 2025		December 31, 2024
RMBS, available-for-sale	$	88,283	$	93,806
RMBS, fair value option (1)	404,688		421,122
CMBS, fair value option (1), (2)	1,284,863		1,225,024
HTM debt securities, amortized cost net of credit loss allowance of $37,369 and $24,463	179,567		406,961
Equity security, fair value	628		5,146
Subtotal—Investment securities	1,958,029		2,152,059
VIE eliminations (1)	(1,657,029)		(1,618,801)
Total investment securities	$	301,000	$	533,258


	RMBS, available-for-sale		RMBS, fair value option		CMBS, fair value option			HTM Securities		Equity Security		Securitization VIEs (1)		Total
Year Ended December 31, 2025
Purchases/fundings	$	—	$	—	$	172,906	(2)	$	73,308	$	—	$	(164,593)	$	81,621
Sales and redemptions	—		—		4,193			—		5,063		—		9,256
Principal collections	8,071		39,372		92,071			295,408		—		(130,571)		304,351

Year Ended December 31, 2024
Purchases/fundings	$	—	$	—	$	187,531		$	80,798	$	—	$	(179,623)	$	88,706
Sales and redemptions	—		—		12,923			—		3,690		(12,923)		3,690
Principal collections	11,253		45,182		13,386			262,722		—		(58,383)		274,160

Year Ended December 31, 2023
Purchases/fundings	$	—	$	—	$	48,011		$	11,578	$	—	$	(48,011)	$	11,578
Sales and redemptions	549		—		—			—		2,493		—		3,042
Principal collections	9,475		53,332		117,100			80,083		—		(169,642)		90,348

(1)Represents RMBS and CMBS, fair value option amounts eliminated due to our consolidation of securitization VIEs. These amounts are reflected as issuance or repayment of debt of, or distributions from, consolidated VIEs in our consolidated statements of cash flows.

The Company classified all of its RMBS not eliminated in consolidation as available-for-sale as of December 31, 2025 and 2024. These RMBS are reported at fair value in the balance sheet with changes in fair value recorded in accumulated other comprehensive income (“AOCI”).


							Unrealized Gains or (Losses) Recognized in AOCI
	Amortized Cost		Credit Loss Allowance		Net Basis		Gross Unrealized Gains		Gross Unrealized Losses		Net Fair Value Adjustment		Fair Value
December 31, 2025
RMBS	$	76,723	$	—	$	76,723	$	13,340	$	(1,780)	$	11,560	$	88,283
December 31, 2024
RMBS	$	80,212	$	—	$	80,212	$	15,163	$	(1,569)	$	13,594	$	93,806

As of December 31, 2025, approximately $78.6 million, or 89%, of RMBS were variable rate. We purchased all of the RMBS at a discount, a portion of which is accreted into income over the expected remaining life of the security. The majority of the income from this strategy is earned from the accretion of this accretable discount.

We have engaged a third party manager who specializes in RMBS to execute the trading of RMBS, the cost of which was $0.7 million, $0.8 million and $0.5 million for the years ended December 31, 2025, 2024 and 2023, respectively, recorded as management fees in the accompanying consolidated statements of operations.

The following table presents the gross unrealized losses and estimated fair value of any available-for-sale securities that were in an unrealized loss position as of December 31, 2025 and 2024, and for which an allowance for credit losses has not been recorded (amounts in thousands):


	Estimated Fair Value				Unrealized Losses
	Securities with a loss less than 12 months		Securities with a loss greater than 12 months		Securities with a loss less than 12 months		Securities with a loss greater than 12 months
As of December 31, 2025
RMBS	$	480	$	10,943	$	—	$	(1,780)
As of December 31, 2024
RMBS	$	2,076	$	9,742	$	(178)	$	(1,391)

As of December 31, 2025 and 2024, there were 14 and 13 securities, respectively, with unrealized losses reflected in the table above. After evaluating the securities, we concluded that the unrealized losses reflected above were noncredit-related and would be recovered from the securities’ estimated future cash flows. We considered a number of factors in reaching this conclusion, including that we did not intend to sell the securities, it was not considered more likely than not that we would be forced to sell the securities prior to recovering our amortized cost, and there were no material credit events that would have caused us to otherwise conclude that we would not recover our cost. Credit losses, if any, are calculated by comparing (i) the estimated future cash flows of each security discounted at the yield determined as of the initial acquisition date or, if since revised, as of the last date previously revised, to (ii) our net amortized cost basis. Significant judgment is used in projecting cash flows for our non-agency RMBS. As a result, actual income and/or credit losses could be materially different from what is currently projected and/or reported.

As discussed in the “Fair Value Option” section of Note 2 herein, we elect the fair value option for certain CMBS and RMBS in an effort to eliminate accounting mismatches resulting from the current or potential consolidation of securitization VIEs. As of December 31, 2025, the fair value and unpaid principal balance of CMBS where we have elected the fair value option, excluding the notional value of interest-only securities and before consolidation of securitization VIEs, were $1.3 billion

and $2.9 billion, respectively. As of December 31, 2025, the fair value and unpaid principal balance of RMBS where we have elected the fair value option, excluding the notional value of interest-only securities and before consolidation of securitization VIEs, were $404.7 million and $326.3 million, respectively. The $1.7 billion total fair value balance of CMBS and RMBS represents our economic interests in these assets. However, as a result of our consolidation of securitization VIEs, the vast majority of this fair value (all except $32.5 million at December 31, 2025) is eliminated against VIE liabilities before arriving at our GAAP balance for fair value option investment securities.


	Amortized Cost Basis		Credit Loss Allowance		Net Carrying Amount		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Fair Value
December 31, 2025
CMBS	$	92,629	$	(13)	$	92,616	$	603	$	(11,436)	$	81,783
Preferred interests	82,844		(27,166)		55,678		—		(22,942)		32,736
Infrastructure bonds	41,463		(10,190)		31,273		650		—		31,923
Total	$	216,936	$	(37,369)	$	179,567	$	1,253	$	(34,378)	$	146,442

December 31, 2024
CMBS	$	357,012	$	(85)	$	356,927	$	315	$	(21,326)	$	335,916
Preferred interests	47,069		(14,308)		32,761		—		(3,568)		29,193
Infrastructure bonds	27,343		(10,070)		17,273		21		(9)		17,285
Total	$	431,424	$	(24,463)	$	406,961	$	336	$	(24,903)	$	382,394


	CMBS		Preferred Interests		Infrastructure Bonds		Total HTM Credit Loss Allowance
Credit loss allowance at December 31, 2022	$	172	$	—	$	3,010	$	3,182
Credit loss (reversal) provision, net	(8)		2,898		7,071		9,961
Credit loss allowance at December 31, 2023	164		2,898		10,081		13,143
Credit loss (reversal) provision, net	(79)		11,410		(11)		11,320
Credit loss allowance at December 31, 2024	85		14,308		10,070		24,463
Credit loss (reversal) provision, net	(72)		12,858		120		12,906
Credit loss allowance at December 31, 2025	$	13	$	27,166	$	10,190	$	37,369

As of December 31, 2025 and 2024, we had a $10.0 million specific credit loss allowance on a $19.2 million infrastructure bond that is collateralized by a first priority lien on a coal-fired power plant in Mississippi. It was deemed credit deteriorated when we acquired the Infrastructure Lending Segment in 2018 and was placed on nonaccrual under the cost recovery method in 2023 due to a forbearance and restructuring plan agreed between the lenders and borrower that was necessitated by operating shortfalls at the plant.

We also had seven commercial lending preferred interests with a combined amortized cost basis of $65.0 million on nonaccrual that were not 90 days or greater past due as of December 31, 2025, with total unfunded commitments of $76.4 million. As of December 31, 2024, we had five commercial lending preferred interests with a combined amortized cost basis of $29.3 million on nonaccrual that were not 90 days or greater past due, with total unfunded commitments of $57.3 million. All of these investments were made in connection with loan modifications, but are not considered credit deteriorated.

The table below summarizes the maturities of our HTM debt securities by type as of December 31, 2025 (amounts in thousands):


	CMBS		Preferred Interests		Infrastructure Bonds		Total
Less than one year	$	25,453	$	23,994	$	—	$	49,447
One to three years	—		15,359		6,437		21,796
Three to five years	67,163		16,325		4,938		88,426
Thereafter	—		—		19,898		19,898
Total	$	92,616	$	55,678	$	31,273	$	179,567

During 2012, we acquired 9,140,000 ordinary shares from a related-party in Starwood European Real Estate Finance Limited (“SEREF”), a debt fund that is externally managed by an affiliate of our Manager and is listed on the London Stock Exchange. During the years ended December 31, 2025, 2024 and 2023, 3,944,520, 2,767,038 and 1,892,313 shares were redeemed by SEREF, for proceeds of $5.1 million, $3.7 million and $2.5 million, respectively, leaving 536,129 shares held as of December 31, 2025. The fair value of the investment remeasured in USD was $0.6 million and $5.1 million as of December 31, 2025 and 2024, respectively. As of December 31, 2025, our shares represent an approximate 2.3% interest in SEREF.