In July 2025, we acquired Fundamental, as discussed in Note 3. As of December 31, 2025, Fundamental owned 492 single-tenant properties, spanning 14.3 million square feet across 44 states, 65 industries and 106 tenants. The properties, which consist of retail, industrial and service facilities, among others, are leased under 120 individual and master net operating lease agreements with a 17.3 year weighted-average lease base term. Fundamental had total gross properties and lease intangibles of $2.4 billion and debt of $1.4 billion as of December 31, 2025. From its acquisition through December 31, 2025, Fundamental acquired 25 additional net lease properties for cash of $221.1 million and the non-cash conversion of three existing loans for the development of net lease properties totaling $16.0 million. It also sold one property for $0.5 million.

The Medical Office Portfolio is comprised of 34 medical office buildings acquired during the year ended December 31, 2016. These properties, which collectively comprise 1.9 million square feet, are geographically dispersed throughout the U.S. and primarily affiliated with major hospitals or located on or adjacent to major hospital campuses. The Medical Office Portfolio includes total gross properties and lease intangibles of $793.1 million and debt of $482.1 million as of December 31, 2025.

A vacant office building in Washington, D.C. was acquired in a loan foreclosure in May 2024 and transferred to our Property Segment with the expectation that we will convert it to multifamily use. That property has a carrying value of $118.6 million, of which $92.5 million represents construction in progress and $26.1 million represents land and land improvements, and no associated debt as of December 31, 2025.

The REIS Equity Portfolio is comprised of 5 commercial real estate properties and one equity interest in an unconsolidated real estate property (see Note 9), which were acquired from CMBS trusts over time. The REIS Equity Portfolio includes total gross properties and lease intangibles of $83.6 million and debt of $37.5 million as of December 31, 2025.

The Commercial and Residential Lending Segment Portfolio represents properties acquired through loan foreclosure or exercise of control over a mezzanine loan borrower’s pledged equity interests. This portfolio includes total gross properties and lease intangibles of $751.7 million and debt of $29.8 million as of December 31, 2025.


	Depreciable Life	December 31, 2025		December 31, 2024
Property Segment
Land and land improvements	0 - 15 years	$	769,318	$	95,642
Buildings and building improvements	0 - 40 years	1,978,498		635,636
Construction in progress	N/A	138,069		89,167
Furniture & fixtures	3 - 5 years	1,451		1,139
Investing and Servicing Segment
Land and land improvements	0 - 15 years	16,567		23,345
Buildings and building improvements	3 - 33 years	49,719		69,582
Furniture & fixtures	1 - 5 years	2,328		3,251
Commercial and Residential Lending Segment
Land and land improvements	0 - 13 years	143,090		117,983
Buildings and building improvements	0 - 50 years	356,440		326,603
Construction in progress	N/A	245,794		219,868
Furniture & fixtures	5 years	2,003		2,003
Properties, cost		3,703,277		1,584,219
Less: accumulated depreciation		(254,625)		(210,541)
Properties, net		$	3,448,652	$	1,373,678

During the year ended December 31, 2025, we recognized $26.8 million of property impairment losses within other loss, net in our consolidated statement of operations on four properties previously acquired through loan foreclosure. Together, these properties have a carrying value of $134.0 million, net of the $26.8 million of impairments. The fair values of these properties were estimated based on either broker opinions of value, a third-party offer price or a purchase and sale agreement executed shortly after year end.

During the year ended December 31, 2023, we recognized $124.9 million of property impairment losses within other loss, net in our consolidated statement of operations. Of those impairment losses, $94.8 million related to a vacant building in California which had been acquired by our Commercial and Residential Lending Segment through a loan foreclosure in December 2022. Management continues to evaluate a variety of alternate strategies related to the property, which would result in recovery of our GAAP basis. The other $30.1 million impairment loss related to an office building in Texas which had been acquired by our Commercial and Residential Lending Segment through a loan foreclosure in May 2022 and ultimately sold in 2025.

During the year ended December 31, 2025, we sold this property for $60.0 million, for a net gain of $4.1 million, consisting of: (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 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.

During the year ended December 31, 2025, we also sold a multifamily property for $54.5 million which did not qualify for sale accounting treatment under GAAP. In connection therewith, we provided $45.8 million of three-year senior secured financing to the purchaser, along with an up to $6.0 million unfunded commitment for future property improvements during the loan term. Such sale will be recognized under GAAP if and when collection of the financed amount becomes probable. In the meantime, the $53.5 million net carrying value of the property as of December 31, 2025 remains within properties on our consolidated balance sheet and the initial down payment of $8.9 million and subsequent interest payments of $0.7 million received from the purchaser are recorded as a deposit liability within accounts payable, accrued expenses and other liabilities on our consolidated balance sheet as of December 31, 2025.

During the year ended December 31, 2024, we sold a multifamily property for $61.0 million which did not qualify for sale accounting treatment under GAAP. In connection therewith, we provided $56.0 million of three-year senior secured and mezzanine financing to the purchaser. Such sale will be recognized under GAAP if and when collection of the financed amount becomes probable. In the meantime, the $58.0 million net carrying value of the property as of December 31, 2025 remains within properties on our consolidated balance sheet and the initial down payment of $5.0 million and subsequent interest payments of $2.0 million received from the purchaser are recorded as a deposit liability within accounts payable, accrued expenses and other liabilities on our consolidated balance sheet as of December 31, 2025.

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.

On February 29, 2024, we sold the 16 retail properties which comprised our 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.