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Loans and Investments | 12 Months Ended
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Dec. 31, 2024
Loans and Investments [Abstract] |
Loans and Investments | Loans and Investments Our Structured Business loan and investment portfolio consists of ($ in thousands):
| December 31, 2024 |  | Percent of Total |  | Loan Count |  | Wtd. Avg. Pay Rate (1) |  | Wtd. Avg. Remaining Months to Maturity (2) |  | Wtd. Avg. First Dollar LTV Ratio (3) |  | Wtd. Avg. Last Dollar LTV Ratio (4)
Bridge loans (5) | $ | 10,893,106 |  |  | 96 | % |  | 688 |  | 6.89 | % |  | 11.6 |  |  | 0 | % |  | 80 | %
Mezzanine loans | 255,556 |  |  | 2 | % |  | 58 |  | 7.52 | % |  | 51.8 |  |  | 51 | % |  | 82 | %
Preferred equity investments | 148,845 |  |  | 1 | % |  | 27 |  | 6.42 | % |  | 53.9 |  |  | 62 | % |  | 79 | %
Construction - multifamily | 4,367 |  |  | <1% |  | 2 |  | 9.97 | % |  | 20.8 |  |  | 0 | % |  | 42 | %
SFR permanent loans | 3,082 |  |  | <1% |  | 1 |  | 9.36 | % |  | 10.3 |  |  | 0 | % |  | 40 | %
Total UPB | 11,304,956 |  |  | 100 | % |  | 776 |  | 6.90 | % |  | 13.1 |  |  | 2 | % |  | 80 | %
Allowance for credit losses | (238,967) |  |  |  |  |  |  |  |  |  |  |  |  |
Unearned revenue | (31,992) |  |  |  |  |  |  |  |  |  |  |  |  |
Loans and investments, net (6) | $ | 11,033,997 |  |  |  |  |  |  |  |  |  |  |  |  |
| December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |
Bridge loans (5) | $ | 12,273,244 |  |  | 97 | % |  | 679 |  | 8.45 | % |  | 12.0 |  | 0 | % |  | 78 | %
Mezzanine loans | 248,457 |  |  | 2 | % |  | 49 |  | 8.41 | % |  | 56.6 |  | 48 | % |  | 80 | %
Preferred equity investments | 85,741 |  |  | 1 | % |  | 17 |  | 3.95 | % |  | 60.3 |  | 53 | % |  | 82 | %
SFR permanent loans | 7,564 |  |  | <1% |  | 2 |  | 9.84 | % |  | 13.9 |  | 0 | % |  | 56 | %
Total UPB | 12,615,006 |  |  | 100 | % |  | 747 |  | 8.42 | % |  | 13.2 |  | 1 | % |  | 78 | %
Allowance for credit losses | (195,664) |  |  |  |  |  |  |  |  |  |  |  |  |
Unearned revenue | (41,536) |  |  |  |  |  |  |  |  |  |  |  |  |
Loans and investments, net (6) | $ | 12,377,806 |  |  |  |  |  |  |  |  |  |  |  |  |
________________________________________ (1)“Weighted Average Pay Rate” is a weighted average, based on the UPB of each loan in our portfolio, of the interest rate required to be paid as stated in the individual loan agreements. Certain loans and investments that require an accrual rate to be paid at maturity are not included in the weighted average pay rate as shown in the table. (2)Including extension options, the weighted average remaining months to maturity at December 31, 2024 and 2023 was 22.7 and 29.4, respectively. (3)The “First Dollar Loan-to-Value (“LTV”) Ratio” is calculated by comparing the total of our senior most dollar and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which we will absorb a total loss of our position. (4)The “Last Dollar LTV Ratio” is calculated by comparing the total of the carrying value of our loan and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which we will initially absorb a loss. (5)At December 31, 2024 and 2023, bridge loans included 423 and 354, respectively, of SFR loans with a total gross loan commitment of $4.18 billion and $2.86 billion, respectively, of which $1.99 billion and $1.32 billion, respectively, was funded. (6)Excludes exit fee receivables of $46.6 million and $38.5 million at December 31, 2024 and 2023, respectively, which is included in other assets on the consolidated balance sheets. Concentration of Credit Risk We are subject to concentration risk in that, at December 31, 2024, the UPB related to 83 loans with five different borrowers represented 10% of total assets. At December 31, 2023, the UPB related to 31 loans with five different borrowers represented 11% of total assets. During both 2024 and 2023, no single loan or investment represented more than 10% of our total assets and no single investor group generated over 10% of our revenue. See Note 19 for details on our concentration of related party loans and investments. We assign a credit risk rating of pass, pass/watch, special mention, substandard or doubtful to each loan and investment, with a pass rating being the lowest risk and a doubtful rating being the highest risk. Each credit risk rating has benchmark guidelines that pertain to debt-service coverage ratios, LTV ratios, borrower strength, asset quality, payment status in accordance with current contractual terms, and funded cash reserves. Other factors such as guarantees, market strength, and remaining loan term and borrower equity are also reviewed and factored into determining the credit risk rating assigned to each loan. This metric provides a helpful snapshot of portfolio quality and credit risk. All portfolio assets are subject to, at a minimum, a thorough quarterly financial evaluation in which historical operating performance and forward-looking projections are reviewed, however, we maintain a higher level of scrutiny and focus on loans that we consider “high risk” and that possess deteriorating credit quality. Generally speaking, given our typical loan profile, risk ratings of pass, pass/watch and special mention suggest that we expect the loan to make both principal and interest payments according to the contractual terms of the current loan agreement or based on our current assessment of the collateral value of the property or financial strength of the guarantors. A risk rating of substandard indicates we have observed weaknesses in one or more of the loan's credit quality factors and we anticipate the loan may require a modification of some kind to avoid a loss of interest and/or principal. A risk rating of doubtful indicates we expect the loan to underperform over its term, there could be loss of interest and/or principal, and we may need to take action to protect our investment including foreclosing on the underlying collateral. Further, while the above are the primary guidelines used in determining a certain risk rating, subjective items such as financial strength of guarantors, market strength, asset quality, or a borrower's ability to perform under modified loan terms may result in a rating that is higher or lower than might be indicated by any risk rating matrix. A summary of the loan portfolio’s internal risk ratings and LTV ratios by asset class at December 31, 2024, and charge-offs recorded during 2024 is as follows ($ in thousands):
|  | UPB by Origination Year |  | Total |  | Wtd. Avg. First Dollar LTV Ratio |  | Wtd. Avg. Last Dollar LTV Ratio
Asset Class / Risk Rating |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior |
Multifamily: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 308,228 |  |  | $ | 41,713 |  |  | $ | 69,000 |  |  | $ | 10,205 |  |  | $ | 2,010 |  |  | $ | 24,823 |  |  | $ | 455,979 |  |  |  |  |
Pass/Watch |  | 357,724 |  |  | 308,353 |  |  | 1,012,593 |  |  | 462,709 |  |  | 119,860 |  |  | 113,100 |  |  | 2,374,339 |  |  |  |  |
Special Mention |  | 79,618 |  |  | 31,344 |  |  | 2,340,782 |  |  | 2,958,064 |  |  | — |  |  | 94,529 |  |  | 5,504,337 |  |  |  |  |
Substandard |  | — |  |  | 658 |  |  | 159,100 |  |  | 206,277 |  |  | — |  |  | 21,700 |  |  | 387,735 |  |  |  |  |
Doubtful |  | 12,460 |  |  | — |  |  | 193,850 |  |  | 159,379 |  |  | 14,800 |  |  | 9,765 |  |  | 390,254 |  |  |  |  |
Total Multifamily |  | $ | 758,030 |  |  | $ | 382,068 |  |  | $ | 3,775,325 |  |  | $ | 3,796,634 |  |  | $ | 136,670 |  |  | $ | 263,917 |  |  | $ | 9,112,644 |  |  | 2 | % |  | 83 | %
Single-Family Rental: |  | Percentage of portfolio |  | 81 | % |  |  |  |
Pass |  | $ | 246,234 |  |  | $ | 32,875 |  |  | $ | 10,683 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 289,792 |  |  |  |  |
Pass/Watch |  | 422,063 |  |  | 410,419 |  |  | 356,567 |  |  | 94,503 |  |  | 41,848 |  |  | — |  |  | 1,325,400 |  |  |  |  |
Special Mention |  | — |  |  | 31,043 |  |  | 139,125 |  |  | 107,155 |  |  | 87,967 |  |  | — |  |  | 365,290 |  |  |  |  |
Doubtful |  | 5,704 |  |  | 10,786 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 16,490 |  |  |  |  |
Total Single-Family Rental |  | $ | 674,001 |  |  | $ | 485,123 |  |  | $ | 506,375 |  |  | $ | 201,658 |  |  | $ | 129,815 |  |  | $ | — |  |  | $ | 1,996,972 |  |  | 0 | % |  | 61 | %
Land: |  | Percentage of portfolio |  | 18 | % |  |  |  |
Pass |  | $ | 7,282 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 7,282 |  |  |  |  |
Special Mention |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,500 |  |  | — |  |  | 3,500 |  |  |  |  |
Substandard |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 127,928 |  |  | 127,928 |  |  |  |  |
Total Land |  | $ | 7,282 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 3,500 |  |  | $ | 127,928 |  |  | $ | 138,710 |  |  | 0 | % |  | 96 | %
Office: |  | Percentage of portfolio |  | 1 | % |  |  |  |
Special Mention |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 35,410 |  |  | $ | — |  |  | $ | 35,410 |  |  |  |  |
Total Office |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 35,410 |  |  | $ | — |  |  | $ | 35,410 |  |  | 0 | % |  | 94 | %
Retail: |  | Percentage of portfolio |  | <1% |  |  |  |
Substandard |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 19,520 |  |  | $ | 19,520 |  |  |  |  |
Total Retail |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 19,520 |  |  | $ | 19,520 |  |  | 0 | % |  | 88 | %
Commercial: |  | Percentage of portfolio |  | < 1% |  |  |  |
Doubtful |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,700 |  |  | $ | 1,700 |  |  |  |  |
Total Commercial |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,700 |  |  | $ | 1,700 |  |  | 0 | % |  | 100 | %
|  | Percentage of portfolio |  | < 1% |  |  |  |
Grand Total |  | $ | 1,439,313 |  |  | $ | 867,191 |  |  | $ | 4,281,700 |  |  | $ | 3,998,292 |  |  | $ | 305,395 |  |  | $ | 413,065 |  |  | $ | 11,304,956 |  |  | 2 | % |  | 80 | %
Charge-offs |  | $ | 464 |  |  | $ | — |  |  | $ | 4,077 |  |  | $ | 7,668 |  |  | $ | — |  |  | $ | — |  |  | $ | 12,209 |  |  |  |  |
A summary of the loan portfolio’s internal risk ratings and LTV ratios by asset class at December 31, 2023, and charge-offs recorded during 2023 is as follows ($ in thousands):
|  | UPB by Origination Year |  | Total |  | Wtd. Avg. First Dollar LTV Ratio |  | Wtd. Avg. Last Dollar LTV Ratio
Asset Class / Risk Rating |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | Prior |
Multifamily: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 80,814 |  |  | $ | 53,316 |  |  | $ | 26,185 |  |  | $ | 2,010 |  |  | $ | 4,598 |  |  | $ | 20,300 |  |  | $ | 187,223 |  |  |  |  |
Pass/Watch |  | 317,358 |  |  | 2,561,938 |  |  | 2,223,155 |  |  | 119,860 |  |  | 84,600 |  |  | 58,044 |  |  | 5,364,955 |  |  |  |  |
Special Mention |  | 24,424 |  |  | 1,762,539 |  |  | 2,631,689 |  |  | 180,750 |  |  | 140,685 |  |  | 350 |  |  | 4,740,437 |  |  |  |  |
Substandard |  | — |  |  | 435,878 |  |  | 322,987 |  |  | 8,006 |  |  | — |  |  | — |  |  | 766,871 |  |  |  |  |
Doubtful |  | — |  |  | — |  |  | 13,930 |  |  | 14,800 |  |  | 9,765 |  |  | — |  |  | 38,495 |  |  |  |  |
Total Multifamily |  | $ | 422,596 |  |  | $ | 4,813,671 |  |  | $ | 5,217,946 |  |  | $ | 325,426 |  |  | $ | 239,648 |  |  | $ | 78,694 |  |  | $ | 11,097,981 |  |  | 1 | % |  | 80 | %
Single-Family Rental: |  | Percentage of portfolio |  | 88 | % |  |  |  |
Pass |  | $ | 9,709 |  |  | $ | 608 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 10,317 |  |  |  |  |
Pass/Watch |  | 289,482 |  |  | 465,057 |  |  | 144,846 |  |  | 119,692 |  |  | — |  |  | — |  |  | 1,019,077 |  |  |  |  |
Special Mention |  | 31,131 |  |  | 45,145 |  |  | 218,697 |  |  | — |  |  | — |  |  | — |  |  | 294,973 |  |  |  |  |
Total Single-Family Rental |  | $ | 330,322 |  |  | $ | 510,810 |  |  | $ | 363,543 |  |  | $ | 119,692 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,324,367 |  |  | 0 | % |  | 62 | %
Land: |  | Percentage of portfolio |  | 10 | % |  |  |  |
Pass/Watch |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 4,600 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,600 |  |  |  |  |
Special Mention |  | — |  |  | — |  |  | — |  |  | 3,500 |  |  | — |  |  | — |  |  | 3,500 |  |  |  |  |
Substandard |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 127,928 |  |  | 127,928 |  |  |  |  |
Total Land |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 8,100 |  |  | $ | — |  |  | $ | 127,928 |  |  | $ | 136,028 |  |  | 0 | % |  | 97 | %
Office: |  | Percentage of portfolio |  | 1 | % |  |  |  |
Special Mention |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 35,410 |  |  | $ | — |  |  | $ | — |  |  | $ | 35,410 |  |  |  |  |
Total Office |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 35,410 |  |  | $ | — |  |  | $ | — |  |  | $ | 35,410 |  |  | 0 | % |  | 80 | %
Retail: |  | Percentage of portfolio |  | < 1% |  |  |  |
Substandard |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 19,520 |  |  | $ | 19,520 |  |  |  |  |
Total Retail |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 19,520 |  |  | $ | 19,520 |  |  | 0 | % |  | 88 | %
Commercial: |  | Percentage of portfolio |  | < 1% |  |  |  |
Doubtful |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,700 |  |  | $ | 1,700 |  |  |  |  |
Total Commercial |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,700 |  |  | $ | 1,700 |  |  | 63 | % |  | 66 | %
|  | Percentage of portfolio |  | < 1% |  |  |  |
Grand Total |  | $ | 752,918 |  |  | $ | 5,324,481 |  |  | $ | 5,581,489 |  |  | $ | 488,628 |  |  | $ | 239,648 |  |  | $ | 227,842 |  |  | $ | 12,615,006 |  |  | 1 | % |  | 78 | %
Charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 5,700 |  |  | $ | 5,700 |  |  |  |  |
Geographic Concentration Risk At December 31, 2024, underlying properties in Texas and Florida represented 23% and 17%, respectively, of the outstanding balance of our loan and investment portfolio. At December 31, 2023, underlying properties in Texas and Florida represented 24% and 17%, respectively, of the outstanding balance of our loan and investment portfolio. No other states represented 10% or more of the total loan and investment portfolio. Allowance for Credit Losses A summary of the changes in the allowance for credit losses is as follows (in thousands):
| Year Ended December 31, 2024
| Multifamily |  | Land |  | Retail |  | Commercial |  | Single-Family Rental |  | Office |  | Other |  | Total
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 110,847 |  |  | $ | 78,058 |  |  | $ | 3,293 |  |  | $ | 1,700 |  |  | $ | 1,624 |  |  | $ | 142 |  |  | $ | — |  |  | $ | 195,664 |
Provision for credit losses (net of recoveries) | 49,501 |  |  | 72 |  |  | — |  |  | — |  |  | 5,900 |  |  | 39 |  |  | — |  |  | 55,512 |
Charge-offs (1) | (12,209) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (12,209) |
Ending balance | $ | 148,139 |  |  | $ | 78,130 |  |  | $ | 3,293 |  |  | $ | 1,700 |  |  | $ | 7,524 |  |  | $ | 181 |  |  | $ | — |  |  | $ | 238,967 |
| Year Ended December 31, 2023
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 37,961 |  |  | $ | 78,068 |  |  | $ | 5,819 |  |  | $ | 1,700 |  |  | $ | 780 |  |  | $ | 8,162 |  |  | $ | 69 |  |  | $ | 132,559 |
Provision for credit losses (net of recoveries) | 72,886 |  |  | (10) |  |  | (2,526) |  |  | — |  |  | 844 |  |  | (2,320) |  |  | (69) |  |  | 68,805 |
Charge-offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (5,700) |  |  | — |  |  | (5,700) |
Ending balance | $ | 110,847 |  |  | $ | 78,058 |  |  | $ | 3,293 |  |  | $ | 1,700 |  |  | $ | 1,624 |  |  | $ | 142 |  |  | $ | — |  |  | $ | 195,664 |
| Year Ended December 31, 2022
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 18,707 |  |  | $ | 77,970 |  |  | $ | 5,819 |  |  | $ | 1,700 |  |  | $ | 319 |  |  | $ | 8,073 |  |  | $ | 653 |  |  | $ | 113,241 |
Provision for credit losses (net of recoveries) | 19,254 |  |  | 98 |  |  | — |  |  | — |  |  | 461 |  |  | 89 |  |  | (584) |  |  | 19,318 |
Ending balance | $ | 37,961 |  |  | $ | 78,068 |  |  | $ | 5,819 |  |  | $ | 1,700 |  |  | $ | 780 |  |  | $ | 8,162 |  |  | $ | 69 |  |  | $ | 132,559 |
________________________ (1)Includes $8.4 million of specific reserves on two multifamily bridge loans that we foreclosed on and took back the underlying collateral as REO assets at fair value. During 2024, we recorded a $55.5 million provision for credit losses, net of recoveries, on our structured portfolio. The additional provision for credit losses was primarily attributable to specifically impaired multifamily loans and the impact from the macroeconomic outlook of the commercial real estate market. Our estimate of allowance for credit losses on our structured portfolio, including related unfunded loan commitments, was based on a reasonable and supportable forecast period that reflects recent observable data, including price indices for commercial real estate, unemployment rates, and interest rates. The expected credit losses over the contractual period of our loans also include the obligation to extend credit through our unfunded loan commitments. Our CECL allowance for unfunded loan commitments is adjusted quarterly and corresponds with the associated outstanding loans. At December 31, 2024 and 2023, we had outstanding unfunded commitments of $2.20 billion and $1.31 billion, respectively, that we are obligated to fund as borrowers meet certain requirements. The outstanding unfunded commitments are predominantly related to our SFR build-to-rent business. At December 31, 2024 and 2023, accrued interest receivable related to our loans totaling $154.4 million and $124.2 million, respectively, was excluded from the estimate of credit losses and is included in other assets on the consolidated balance sheets. All of our structured loans and investments are secured by real estate assets or by interests in real estate assets, and, as such, the measurement of credit losses may be based on the difference between the fair value of the underlying collateral and the carrying value of the assets as of the period end. A summary of our specific reserve loans considered impaired by asset class is as follows ($ in thousands):
|  | December 31, 2024
Asset Class |  | UPB (1) |  | Carrying Value |  | Allowance for Credit Losses |  | Wtd. Avg. First Dollar LTV Ratio |  | Wtd. Avg. Last Dollar LTV Ratio
Multifamily |  | $ | 456,261 |  |  | $ | 444,400 |  |  | $ | 60,887 |  |  | 0 | % |  | 99 | %
Land |  | 134,215 |  |  | 127,868 |  |  | 77,869 |  |  | 0 | % |  | 99 | %
Retail |  | 19,520 |  |  | 15,068 |  |  | 3,293 |  |  | 0 | % |  | 87 | %
Commercial |  | 1,700 |  |  | 1,700 |  |  | 1,700 |  |  | 0 | % |  | 100 | %
Total |  | $ | 611,696 |  |  | $ | 589,036 |  |  | $ | 143,749 |  |  | 0 | % |  | 99 | %
|  | December 31, 2023
Multifamily |  | $ | 272,493 |  |  | $ | 260,291 |  |  | $ | 37,750 |  |  | 0 | % |  | 100 | %
Land |  | 134,215 |  |  | 127,868 |  |  | 77,869 |  |  | 0 | % |  | 99 | %
Retail |  | 19,521 |  |  | 15,037 |  |  | 3,292 |  |  | 0 | % |  | 88 | %
Commercial |  | 1,700 |  |  | 1,700 |  |  | 1,700 |  |  | 0 | % |  | 100 | %
Total |  | $ | 427,929 |  |  | $ | 404,896 |  |  | $ | 120,611 |  |  | 0 | % |  | 99 | %
________________________________________ (1)Represents the UPB of twenty-seven and nineteen impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class at December 31, 2024 and 2023, respectively. Non-performing Loans Loans are classified as non-performing once the contractual payments exceed 60 days past due. Income from non-performing loans is generally recognized on a cash basis when it is received. Full income recognition will resume when the loan becomes contractually current, and performance has recommenced. At December 31, 2024, twenty-six loans with an aggregate net carrying value of $598.9 million, net of related loan loss reserves of $23.8 million, were classified as non-performing and, at December 31, 2023, sixteen loans with a total net carrying value of $235.6 million, net of related loan loss reserves of $27.1 million, were classified as non-performing. A summary of our non-performing loans by asset class is as follows (in thousands):
| December 31, 2024 |  | December 31, 2023
| UPB |  | Carrying Value |  | UPB |  | Carrying Value
Multifamily | $ | 649,227 |  |  | $ | 620,072 |  |  | $ | 271,532 |  |  | $ | 260,129 |
Commercial | 1,700 |  |  | 1,700 |  |  | 1,700 |  |  | 1,700 |
Retail | 920 |  |  | 910 |  |  | 920 |  |  | 910 |
Total | $ | 651,847 |  |  | $ | 622,682 |  |  | $ | 274,152 |  |  | $ | 262,739 |
At both December 31, 2024 and 2023, we had no loans contractually past due greater than 60 days that are still accruing interest. Other Non-accrual Loans In this challenging economic environment, we began experiencing late and partial payments on certain loans in our structured portfolio. Beginning in the fourth quarter of 2023, for loans that are 60 days past due or less, if we have determined there is reasonable doubt about collectability of all principal and interest, we classify those loans as non-accrual and recognize interest income only when cash is received. The table below is a summary of those loans that are 60 days past due or less that we have classified as non-accrual, and changes to those loans for the period presented (in thousands).
|  | Year ended December 31, 2024 |  |
Beginning balance (twenty-four multifamily bridge loans) |  | $ | 956,917 |  |  |
Loans that progressed to greater than 60 days past due |  | (676,881) |  |  |
Loans modified or paid off (1) |  | (1,103,676) |  |  |
Additional loans that are now less than 60 days past due experiencing late and partial payments |  | 991,068 |  |  |
Ending balance (nine multifamily bridge loans) |  | $ | 167,428 |  |  |
________________________ (1)The modifications included bringing the loans current by paying past due interest owed (see Loan Modifications section below). There were no other non-accrual loans that were 60 days or less past due at December 31, 2024. During the year ended December 31, 2024 and 2023, we recorded $23.2 million and $92.5 million, respectively, of interest income on non-performing and other non-accrual loans. In addition, we have six loans with a carrying value totaling $121.4 million at December 31, 2024, that are collateralized by a land development project. The loans do not carry a current pay rate of interest, however, five of the loans with a carrying value totaling $112.1 million entitle us to a weighted average accrual rate of interest of 10.05%. In 2008, we suspended the recording of the accrual rate of interest on these loans, as they were impaired and we deemed the collection of this interest to be doubtful. At both December 31, 2024 and 2023, we had a cumulative allowance for credit losses of $71.4 million related to these loans. The loans are subject to certain risks associated with a development project including, but not limited to, availability of construction financing, increases in projected construction costs, demand for the development’s outputs upon completion of the project, and litigation risk. Additionally, these loans were not classified as non-performing as the borrower is compliant with all of the terms and conditions of the loans. Loan Modifications We may agree to amend or modify loans to certain borrowers experiencing financial difficulty based on specific facts and circumstances in order to improve long-term collectability efforts and avoid foreclosure and repossession of the underlying collateral. The loan modifications to borrowers experiencing financial difficulty may include a delay in payments, including payment deferrals, term extensions, principal forgiveness, interest rate reductions, or a combination thereof. We record interest on modified loans on an accrual basis to the extent the modified loan is contractually current and we believe it is ultimately collectible. The allowance for credit losses on loan modifications is measured using the same method as all other loans held for investment. As part of the modifications of each of these loans, we expect borrowers to invest additional capital to recapitalize their projects, which the vast majority have funded in the form of either, or a combination of: (1) reallocation of and/or additional deposits into interest, renovation and/or general reserves; (2) the purchase of a new rate cap; (3) a principal paydown of the loan; and (4) bringing any delinquent loans current by paying past due interest owed. The following table represents the UPB of loan modifications, as of the modification date, made to borrowers experiencing financial difficulty during 2024 and the deferred interest recorded on those loans at December 31, 2024 (in thousands):
Asset Class |  | Payment Deferrals With/Without Term Extensions (1) |  | Term Extensions (2) |  | Rate Reductions With/Without Term Extensions (3) |  | Other (4) |  | Total (5)(6) |  | December 31, 2024 Deferred Interest (7)
Multifamily |  | $ | 2,312,067 |  |  | $ | 984,372 |  |  | $ | 134,630 |  |  | $ | 574,491 |  |  | $ | 4,005,560 |  |  | $ | 28,600 |
Single-Family Rental |  | 74,078 |  |  | — |  |  | 38,479 |  |  | — |  |  | 112,557 |  |  | 570 |
Total UPB |  | $ | 2,386,145 |  |  | $ | 984,372 |  |  | $ | 173,109 |  |  | $ | 574,491 |  |  | $ | 4,118,117 |  |  | $ | 29,170 |
________________________ (1)These loans were modified to a weighted average pay rate and deferred rate of 5.99% and 2.06%, respectively, at December 31, 2024 and to extend the weighted average term by 14.4 months. These modifications include loans with a total UPB of $379.0 million in which the pay rate increases from time-to-time throughout the loans maturities. (2)These loans were modified to extend the maturity date. The weighted average term extension was 11.7 months. (3)These loans were modified to extend the weighted average term by 23.6 months and to reduce the weighted average interest rate by 0.62%. (4)These loan modifications included amending certain terms, such as reallocating and/or replenishment of reserves. (5)The total UPB of the loan modifications made during 2024 was $3.97 billion at December 31, 2024 and represents 35% of our total Structured Business loans and investments portfolio. (6)At December 31, 2024, modified loans with a total UPB of $413.4 million have specific reserves totaling $44.3 million. (7)These amounts are included in other assets on the consolidated balance sheets. The following table represents the UPB of loan modifications, as of the modification date, made to borrowers experiencing financial difficulty during 2023 and the deferred interest recorded on those loans at December 31, 2024 (in thousands):
Asset Class |  | Payment Deferrals With Term Extensions (1)(2) |  | December 31, 2024 Deferred Interest (3)
Multifamily |  | $ | 398,461 |  |  | $ | 9,945 |
________________________ (1)These loans were modified to a weighted average pay rate and deferred rate of 5.92% and 2.16% at December 31, 2024, respectively, and to extend the weighted average term by 14.6 months. (2)The total UPB of the loan modifications made during 2023 was $351.8 million at December 31, 2024 and represents 3% of our total Structured Business loans and investments portfolio. (3)The deferred interest balance was $2.3 million at December 31, 2023. These amounts are included in other assets on the consolidated balance sheets. At December 31, 2024, we had future funding commitments on modified loans with borrowers experiencing financial difficulty of $56.4 million, which are generally subject to performance covenants that must be met by the borrower to receive funding. All of the above modified loans were performing pursuant to their contractual terms at December 31, 2024, except for twelve loans with a total UPB of $395.8 million which were modified in 2024. Since these loans are not performing pursuant to their modified terms, these loans are classified as non-accrual loans. Three of these loans with a UPB of $100.4 million have a specific reserve of $20.2 million. The remaining nine loans with a total UPB of $295.4 million have no specific reserves as the estimated fair value of the properties exceeded our carrying value at December 31, 2024. Seven of the twelve loans with a total UPB of $204.6 million were modified to provide temporary rate relief through a pay and accrual feature. There were no other material loan modifications, refinancings and/or extensions during 2024, 2023 or 2022 for borrowers experiencing financial difficulty. Loan Resolutions In the fourth quarter of 2024, we exercised our right to foreclose on two properties in Houston, Texas, that were the underlying collateral for two bridge loans with an aggregate UPB of $73.3 million, a weighted average interest rate of SOFR plus 3.29%, with a weighted average SOFR floor of 0.68%, and an aggregate net carrying value of $56.5 million, which includes loan loss reserves totaling $9.0 million and holdback reserves totaling $8.2 million. At foreclosure, we recorded a $7.7 million loan loss recovery and charged-off the remaining loan loss reserves of $1.3 million. Additionally, we simultaneously sold both properties for $67.6 million to a new borrower and provided two new bridge loans totaling $67.6 million with a weighted average fixed interest rate of 4.25% for the first two years and 5.75% in the third year. The new financing was deemed to be a significant financing component of the transaction and, as a result, we recorded a loss and corresponding liability totaling $5.0 million as an adjustment to the purchase price, which will be accreted into interest income over the life of the loan. The gains and losses of this transaction were recorded through the provision for credit losses (net of recoveries) on the consolidated statements of income. In July 2024, we exercised our right to foreclose on a property in Waco, Texas, that was the underlying collateral for a non-performing bridge loan with a UPB of $12.7 million, an interest rate of SOFR plus 3.75%, with a SOFR floor of 0.10%, and a net carrying value of $11.3 million, which was net of a $1.5 million loan loss reserve. At foreclosure, we recorded a $1.0 million loan loss recovery and charged-off the remaining loan loss reserve. Additionally, we simultaneously sold the property for $12.3 million to a new borrower and provided a new $12.3 million bridge loan with an interest rate of SOFR, with a SOFR floor of 5.25%, which was deemed to be a significant financing component of the transaction. As a result, we recorded a loss and corresponding liability of $1.0 million as an adjustment to the purchase price which will be accreted into interest income over the life of the loan. The gains and losses of this transaction were recorded through the provision for credit losses (net of recoveries) on the consolidated statements of income. In July 2024, we exercised our right to foreclose on a property in Savannah, Georgia, that was the underlying collateral for a non-performing bridge loan with a UPB of $7.3 million, an interest rate of SOFR plus 3.75%, with a SOFR floor of 0.10%, and a net carrying value of $6.6 million, which was net of a $0.8 million loan loss reserve. At foreclosure, we recorded a $0.8 million loan loss recovery and a gain of $0.3 million. Additionally, we simultaneously sold the property for $7.7 million to a new borrower and provided a new $7.3 million bridge loan with a fixed pay rate of 4.00% and a fixed accrual rate of 2.00% that is deferred to payoff, which was deemed to be a significant financing component of the transaction. As a result, we recorded a loss and corresponding liability of $0.5 million as an adjustment to the purchase price which will be accreted into interest income over the life of the loan. The gains and losses of this transaction were recorded through the provision for credit losses (net of recoveries). In April 2024, we exercised our right to foreclose on a group of properties in Houston, Texas, that were the underlying collateral for a bridge loan with a UPB of $100.3 million. We simultaneously sold the properties for $101.3 million to a newly formed entity, which was initially capitalized with $15.0 million of equity and a new $95.3 million bridge loan that we provided at SOFR plus 3.00%. At December 31, 2024, total equity invested was $21.2 million and is made up of $9.4 million from AWC Real Estate Opportunity Partners I LP ("AWC”), a fund in which we have a 49% non-controlling limited partnership interest (see Note 8 for details) and $11.8 million from multiple independent ownership groups. AWC and one of the other equity members are the co-managing members of the entity that owns the real estate. We did not record a loss on the original bridge loan and received all past due interest owed. In the fourth quarter of 2023, we converted a first mortgage loan and a preferred equity investment in an office building to a common equity investment, which is classified as real estate owned in our consolidated balance sheets. On the date of the conversion, the investment had a net carrying value of $37.1 million, net of an $8.0 million reserve. Upon conversion, we recognized a $2.3 million loan loss recovery as a result of the fair value of the property exceeding the carrying value of our loan and preferred equity investment. We intend to convert the building to residential condominiums. In April 2023, we exercised our right to foreclose on a group of properties in Houston, Texas, that are the underlying collateral for 4 bridge loans with a total UPB of $217.4 million. We simultaneously sold these properties to a significant equity investor in the original bridge loans and provided new bridge loan financing as part of the sale totaling $239.4 million with a fixed pay rate increasing over time from 3.00% to 5.00%, while deferring up to a weighted average rate of SOFR plus 3.47%. We did not record a loss on the original bridge loans and recovered all the outstanding interest owed to us as part of this restructuring. At December 31, 2024 and 2023, we have deferred interest totaling $22.2 million and $10.3 million accrued, respectively, related to these new loans, which is included in other assets. In 2022, we sold four bridge loans with an aggregate UPB of $296.9 million at par less shared loan origination fees and selling costs totaling $2.0 million and recaptured $78.0 million of capital to be used for future investments. The $2.0 million in fees and costs were recorded as an unrealized impairment loss and included in other income (loss), net on the consolidated statements of income. We retained the right to service these loans. During 2022, we sold a bridge loan and mezzanine loans totaling $110.5 million, that were collateralized by a land development project, at a discount for $102.2 million. In connection with this transaction, we recaptured $66.3 million of capital to be used for future investments and recorded a $9.2 million loss (including fees and expenses), which was included in other income (loss), net on the consolidated statements of income. We have the potential to recover up to $2.8 million depending on the future performance of the loan. Given the transitional nature of some of our real estate loans, we may require funds to be placed into an interest reserve, based on contractual requirements, to cover debt service costs. At December 31, 2024 and 2023, we had total interest reserves of $215.4 million and $156.1 million, respectively, on 589 loans and 537 loans, respectively, with an aggregate UPB of $8.65 billion and $8.44 billion, respectively.

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