Earnings from notes and mortgages receivable are reported within the Company’s Structured Financing segment (Note 12). Interest receivable is included in Other assets, net (Note 5). The Company’s notes receivable, net are generally collateralized either by the underlying properties or the borrowers’ ownership interests in the entities that own the properties, and were as follows (dollars in thousands):


	March 31,			December 31,			March 31, 2025
Description	2025			2024			Number		Maturity Date	Interest Rate
Notes receivable	$	127,828		$	128,588			6	Apr 2020 - Dec 2027	4.65% - 13.75%
Allowance for credit losses		(2,127	)		(2,004	)
Notes receivable, net	$	125,701		$	126,584			6

During the three months ended March 31, 2025, the Company extended the maturity date of one note receivable of $1.4 million from September 2024 to July 2025.

In April 2025, the Company modified a redeemable preferred equity investment in a property that is accounted for as a note receivable, which had a principal balance of $54.0 million as of March 31, 2025, to extend the maturity date from February 25, 2025 to February 9, 2027, with an option for a one-year extension. As part of this modification, the borrower repaid the accrued interest balance of $25.3 million. Additionally, the Company provided a mezzanine loan and additional advances under the preferred equity related to the same asset in the aggregate amount of $28.5 million, which also matures on February 9, 2027 and bears interest at a fixed rate of 9.00% (Note 16).

Changes in the Company’s credit allowance were as follows (in thousands):


	March 31,		December 31,
	2025		2024
Allowance for credit losses as of beginning of periods	$	2,004	$	1,279
Provision of loan losses		123		725
Total credit allowance	$	2,127	$	2,004

Due to the lack of comparability across the Structured Financing portfolio, each note was evaluated separately. As of March 31, 2025, the Company has five performing notes with a total amortized cost of $138.8 million, inclusive of accrued interest of $28.8 million, for which an allowance for credit losses has been recorded aggregating $2.1 million.

One note receivable aggregating $21.6 million, including accrued interest (exclusive of default interest and other amounts due on the loan that have not been recognized) was in default at March 31, 2025 and December 31, 2024. On April 1, 2020, the loan matured and was not repaid. The Company expects to take appropriate actions to recover the amounts due under the loan and has issued a reservation of rights letter to the borrowers and guarantor, reserving all of its rights and remedies under the applicable note documents and otherwise. The Company has elected to apply the practical expedient in accordance with ASC Topic 326: Financial Instruments - Credit Losses (“ASC 326”) and did not establish an allowance for credit losses because (i) this note is a collateral-dependent note, which due to their settlement terms is not expected to be settled in cash but rather by the Company’s possession of the real estate collateral; and (ii) at March 31, 2025, the Company determined that the estimated fair value of the collateral at the expected realization date for this loan was sufficient to cover the carrying value of its investments in this note receivable.