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Real Estate Owned, Net | 9 Months Ended
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Sep. 30, 2025
Real Estate [Abstract] |
Real Estate Owned, Net | REAL ESTATE OWNED, NET As of September 30, 2025 and December 31, 2024, we had 10 and seven REO assets, respectively. During the nine months ended September 30, 2025, we acquired three REO assets through deed-in-lieu of foreclosure transactions or loan modifications that resulted in us consolidating the collateral assets, for a total acquisition price of $406.3 million. We allocated $221.0 million to land and land improvements, $137.1 million to building and building improvements, $49.2 million to acquired intangible assets, and $(1.0) million to other components of the purchase price. In aggregate, we charged off $83.9 million of CECL reserves relating to the loans that had previously been secured by these assets, as the loans’ aggregate carrying value of $490.2 million at the time of the REO acquisitions exceeded the acquisition date fair value noted above. See Note 2 for further discussion of RE O assets. The acquisition of three REO assets during the nine months ended September 30, 2025 were accounted for as asset acquisitions under ASC 805, and we recognized these properties as REO assets held for investment. The following table presents the REO assets that were acquired during the nine months ended September 30, 2025 ($ in thousands):
Acquisition Date |  | Location |  | Property Type |  | Acquisition Date Fair Value
February 2025 |  | Chicago, IL |  | Office |  | $45,045
September 2025 |  | Atlanta, GA |  | Office |  | $132,974
September 2025 |  | New York, NY |  | Hospitality |  | $228,253
|  |  |  |  |  | $406,272
The following table presents the REO assets and liabilities included in our consolidated balance sheets ($ in thousands):
| September 30, 2025 |  | December 31, 2024
Assets |  |  |
Building and building improvements | $555,879 |  | $410,546
Land and land improvements | 402,248 |  | 181,083
Total | $958,127 |  | $591,629
Less: accumulated depreciation | (24,492) |  | (3,444)
Real estate owned, net | $933,635 |  | $588,185
Intangible real estate assets | $130,099 |  | $83,253
Less: accumulated amortization | (33,427) |  | (5,964)
Intangible real estate assets, net(1) | $96,672 |  | $77,289
Liabilities |  |  |
Intangible real estate liabilities | $4,545 |  | $1,422
Less: accumulated amortization | (317) |  | (1)
Intangible real estate liabilities, net(2) | $4,228 |  | $1,421
(1)Included within other assets on our consolidated balance sheets. Refer to Note 6 for further information. (2)Included within other liabilities on our consolidated balance sheets. Refer to Note 6 for further information. Revenue and expenses from real estate owned consisted of the following ($ in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Rental income | $15,263 |  | $1,037 |  | $45,803 |  | $1,037
Other operating income | 18,470 |  | 177 |  | 63,775 |  | 177
Revenue from real estate owned | $33,733 |  | $1,214 |  | $109,578 |  | $1,214
Operating expense | $28,061 |  | $1,654 |  | $89,238 |  | $2,432
Depreciation and amortization expense | 15,039 |  | 1,030 |  | 47,960 |  | 1,215
Total expenses from real estate owned | $43,100 |  | $2,684 |  | $137,198 |  | $3,647
Net loss from real estate owned | $(9,367) |  | $(1,470) |  | $(27,620) |  | $(2,433)
The following table presents the undiscounted future minimum rents we expect to receive for our office properties as of September 30, 2025. Leases at our multifamily assets are short term, generally 12 months or less, and are therefore not included ($ in thousands):
| Future Minimum Rents
2025 (remaining) | $17,836
2026 | 61,740
2027 | 50,111
2028 | 41,736
2029 | 34,329
Thereafter | 72,948
Total | $278,700
The following table presents the amortization of lease intangibles for each of the succeeding fiscal years ($ in thousands):
| In-place lease intangibles |  | Above-market lease intangibles |  | Below-market lease intangibles
2025 (remaining) | $9,561 |  | $1,427 |  | $(292)
2026 | 26,096 |  | 4,121 |  | (1,140)
2027 | 15,437 |  | 3,077 |  | (995)
2028 | 11,225 |  | 2,505 |  | (872)
2029 | 7,765 |  | 1,708 |  | (498)
Thereafter | 11,002 |  | 2,748 |  | (431)
Total | $81,086 |  | $15,586 |  | $(4,228)

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- Definition The entire disclosure for real estate owned (as defined). Generally, the largest component of real estate owned by lenders is assets taken in settlement of troubled loans through surrender or foreclosure. Real estate investments, real estate loans that qualify as investments in real estate, and premises that are no longer used in operations may also be included in real estate owned. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Section 45 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org/1943274/2147481990/310-10-45-3 + Details
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