Real Estate Owned	9 Months Ended
Sep. 30, 2025
Real Estate [Abstract]
Real Estate Owned	Note 5 – Real Estate Owned Real Estate Owned, Held for Investment As of September 30, 2025, assets and liabilities related to real estate owned, held for investment consisted of three properties: the D.C. Hotel, a full-service luxury hotel in Washington, D.C., the Brooklyn Multifamily Development, a multifamily development property located in downtown Brooklyn, NY, and the Atlanta Hotel, a hotel in Atlanta, GA. Property acquired through foreclosure or deed-in-lieu of foreclosure is classified as real estate owned and recognized at fair value on our condensed consolidated balance sheet upon acquisition in accordance with ASC 805. As real estate owned is a nonfinancial asset, it is recorded at fair value on a non-recurring basis in accordance with ASC 820. Refer to "Note 3 – Fair Value Disclosure" for full discussion of non-recurring fair value measurements. D.C. Hotel In 2021, we acquired legal title to the D.C. Hotel, which previously secured two subordinate loans, through a deed-in-lieu of foreclosure. In accordance with ASC 805, we consolidated the hotel's assets and liabilities at their respective fair values. As of September 30, 2025 and December 31, 2024, the value of net real estate assets related to the D.C. Hotel was $158.4 million and $157.1 million, respectively. As of September 30, 2025, our net real estate assets included depreciable assets of $78.5 million, net of $11.0 million in accumulated depreciation, attributable to the building, and $5.9 million, net of $7.2 million in accumulated depreciation, attributable to furniture, fixtures, and equipment ("FF&E"). As of December 31, 2024, our net real estate assets included depreciable assets of $79.1 million, net of $9.1 million in accumulated depreciation, attributable to the building, and $6.0 million, net of $5.6 million in accumulated depreciation, attributable to FF&E. In June 2024, we obtained a $73.7 million mortgage secured by the D.C. Hotel. The mortgage includes an interest rate of term one-month SOFR + 3.00% and current maturity of July 2026, with an option to extend for one year, contingent upon meeting certain conditions. The mortgage agreement contains covenants requiring our unencumbered liquidity be greater than $10.0 million and our net worth be greater than $200.0 million. Under these covenants, our General CECL Allowance is added back to our net worth calculation. As of September 30, 2025 and December 31, 2024, the carrying value of the mortgage included within debt related to real estate owned, held for investment, net on our condensed consolidated balance sheet was $73.2 million, net of $0.5 million in deferred financing costs and $72.6 million, net of $1.1 million in deferred financing costs, respectively. To manage our exposure to variable cash flows on our borrowings under this mortgage, we entered into an interest rate cap in June 2024. As of both September 30, 2025 and December 31, 2024, the fair value of the interest rate cap was de minimis. Refer to "Note 10 – Derivatives" for full detail. We recorded net profit from the hotel’s operations of $0.7 million and $6.9 million for three and nine months ended September 30, 2025, and net profit of $1.9 million and $8.1 million for three and nine months ended September 30, 2024, respectively. Brooklyn Multifamily Development In 2022, we acquired legal title of a multifamily development property in downtown Brooklyn, NY, through a deed-in-lieu of foreclosure. The transaction was accounted for as an asset acquisition in accordance with ASC 805, and we recorded the real estate assumed at a fair value based on the market value of the property as of the date of acquisition. Upon taking title, we concurrently contributed the property to a joint venture with a third-party real estate developer. The entity was deemed to be a VIE, of which we were determined to be the primary beneficiary. Through our wholly owned subsidiaries, we hold a 100% equity ownership interest in the joint venture and our partner is only entitled to profit upon achievement of certain returns under our joint venture agreement. Additionally, upon taking title, we obtained $164.8 million in construction financing on the property. As of September 30, 2025 and December 31, 2024, the carrying value of the construction financing included within debt related to real estate owned, held for investment, net on our condensed consolidated balance sheets was $329.8 million, net of $1.1 million in deferred financing costs and $252.0 million, net of $2.0 million in deferred financing costs, respectively. The construction financing includes a maximum commitment of $388.4 million, an interest rate of SOFR +2.55%, and current maturity of August 2026, with an option to extend for one year, contingent upon meeting certain conditions. The construction financing agreement contains covenants requiring our unencumbered liquidity be greater than $100.0 million and our net worth be greater than $600.0 million. Under these covenants, our General CECL Allowance is added back to our net worth calculation. As of both September 30, 2025 and December 31, 2024, we were in compliance with these covenants. To manage our exposure to variable cash flows on our borrowings under this construction financing, we entered into an interest rate cap in September 2023. The interest rate cap was extended by one year in September 2024. As of September 30, 2025 and December 31, 2024, the fair value of the interest rate cap was $0.1 million and $0.4 million, respectively, and recorded within derivative assets, net on our condensed consolidated balance sheet. Refer to "Note 10 – Derivatives" for full detail. As of September 30, 2025 and December 31, 2024, our cost basis in the property was $616.6 million and $540.9 million, respectively and included capitalized construction and financing costs as of September 30, 2025 and December 31, 2024 of $393.3 million and $319.7 million, respectively. We capitalized construction and financing costs of $22.7 million and $75.7 million during the three and nine months ended September 30, 2025, respectively, and $44.0 million and $121.4 million during the three and nine months ended September 30, 2024, respectively. During the third quarter of 2025, a component of the property reached substantial completion stage and residential units in this component were held available for occupancy. As such, we accounted for this component as a separate project, ceased capitalizing expenses associated with this project and started recording depreciation for such project. Direct and indirect costs attributable to the remainder of the property, which is still undergoing construction, continue to be capitalized. As of September 30, 2025, our net real estate assets included depreciable assets of $393.2 million, net of $0.1 million in accumulated depreciation, attributable to the building, and $2.1 million, net of de minimis accumulated depreciation, attributable to FF&E. In accordance with ASC 842, leases at the Brooklyn Multifamily Development are classified as operating leases, accordingly rental revenue is recognized using the straight-line method over the lease terms. We recorded net loss from the property’s operations of $0.8 million for the three and nine months ended September 30, 2025. Atlanta Hotel In March 2023, we acquired legal title of the Atlanta Hotel through a deed-in-lieu of foreclosure, and we consolidated the hotel's assets and liabilities at their respective fair values in accordance with ASC 805. The hotel was subsequently classified as held for sale during the second quarter of 2023. As of March 31, 2024, the Atlanta Hotel no longer met the criteria to be classified as held for sale under ASC 360. In accordance with ASC 360, the REO Fixed Assets were reclassified to their carrying value before classifying as held for sale in June 2023. On the date of reclassification, March 31, 2024, we recorded $3.6 million in depreciation, representing the amount that would have been recorded had the asset remained as held for investment. All other assets and liabilities were reclassified to the corresponding line items on our condensed consolidated balance sheet. No realized gain or loss was recorded in connection with this reclassification. As of September 30, 2025 and December 31, 2024, the value of net real estate assets related to the Atlanta Hotel was $69.6 million and $69.0 million, respectively. As of September 30, 2025, our net real estate assets included depreciable assets of $42.3 million, net of $7.8 million in accumulated depreciation, attributable to the building, and $9.0 million, net of $4.9 million in accumulated depreciation, attributable to FF&E. As of December 31, 2024, our net real estate assets included depreciable assets of $44.7 million, net of $5.5 million in accumulated depreciation, attributable to the building, and $6.7 million, net of $3.1 million in accumulated depreciation, attributable to FF&E. For the three and nine months ended September 30, 2025, we recorded net profit/(loss) from the hotel's operations of ($0.6) million and $0.5 million, respectively. For the three and nine months ended September 30, 2024, we recorded net profit/(loss) from the hotel's operations of $0.4 million and ($1.2) million, respectively.

Real Estate Owned

9 Months Ended

Sep. 30, 2025

Note 5 – Real Estate Owned

Real Estate Owned, Held for Investment

As of September 30, 2025, assets and liabilities related to real estate owned, held for investment consisted of three properties: the D.C. Hotel, a full-service luxury hotel in Washington, D.C., the Brooklyn Multifamily Development, a multifamily development property located in downtown Brooklyn, NY, and the Atlanta Hotel, a hotel in Atlanta, GA.

Property acquired through foreclosure or deed-in-lieu of foreclosure is classified as real estate owned and recognized at fair value on our condensed consolidated balance sheet upon acquisition in accordance with ASC 805. As real estate owned is a nonfinancial asset, it is recorded at fair value on a non-recurring basis in accordance with ASC 820.

Refer to "Note 3 – Fair Value Disclosure" for full discussion of non-recurring fair value measurements.

D.C. Hotel

In 2021, we acquired legal title to the D.C. Hotel, which previously secured two subordinate loans, through a deed-in-lieu of foreclosure. In accordance with ASC 805, we consolidated the hotel's assets and liabilities at their respective fair values.

As of September 30, 2025 and December 31, 2024, the value of net real estate assets related to the D.C. Hotel was $158.4 million and $157.1 million, respectively. As of September 30, 2025, our net real estate assets included depreciable assets of $78.5 million, net of $11.0 million in accumulated depreciation, attributable to the building, and $5.9 million, net of $7.2 million in accumulated depreciation, attributable to furniture, fixtures, and equipment ("FF&E"). As of December 31, 2024, our net real estate assets included depreciable assets of $79.1 million, net of $9.1 million in accumulated depreciation, attributable to the building, and $6.0 million, net of $5.6 million in accumulated depreciation, attributable to FF&E.

In June 2024, we obtained a $73.7 million mortgage secured by the D.C. Hotel. The mortgage includes an interest rate of term one-month SOFR + 3.00% and current maturity of July 2026, with an option to extend for one year, contingent upon meeting certain conditions. The mortgage agreement contains covenants requiring our unencumbered liquidity be greater than $10.0 million and our net worth be greater than $200.0 million. Under these covenants, our General CECL Allowance is added back to our net worth calculation.

As of September 30, 2025 and December 31, 2024, the carrying value of the mortgage included within debt related to real estate owned, held for investment, net on our condensed consolidated balance sheet was $73.2 million, net of $0.5 million in deferred financing costs and $72.6 million, net of $1.1 million in deferred financing costs, respectively. To manage our exposure to variable cash flows on our borrowings under this mortgage, we entered into an interest rate cap in June 2024. As of both September 30, 2025 and December 31, 2024, the fair value of the interest rate cap was de minimis. Refer to "Note 10 – Derivatives" for full detail.

We recorded net profit from the hotel’s operations of $0.7 million and $6.9 million for three and nine months ended September 30, 2025, and net profit of $1.9 million and $8.1 million for three and nine months ended September 30, 2024, respectively.

Brooklyn Multifamily Development

In 2022, we acquired legal title of a multifamily development property in downtown Brooklyn, NY, through a deed-in-lieu of foreclosure. The transaction was accounted for as an asset acquisition in accordance with ASC 805, and we recorded the real estate assumed at a fair value based on the market value of the property as of the date of acquisition.

Upon taking title, we concurrently contributed the property to a joint venture with a third-party real estate developer. The entity was deemed to be a VIE, of which we were determined to be the primary beneficiary. Through our wholly owned subsidiaries, we hold a 100% equity ownership interest in the joint venture and our partner is only entitled to profit upon achievement of certain returns under our joint venture agreement.

Additionally, upon taking title, we obtained $164.8 million in construction financing on the property. As of September 30, 2025 and December 31, 2024, the carrying value of the construction financing included within debt related to real estate owned,

held for investment, net on our condensed consolidated balance sheets was $329.8 million, net of $1.1 million in deferred financing costs and $252.0 million, net of $2.0 million in deferred financing costs, respectively.

The construction financing includes a maximum commitment of $388.4 million, an interest rate of SOFR +2.55%, and current maturity of August 2026, with an option to extend for one year, contingent upon meeting certain conditions. The construction financing agreement contains covenants requiring our unencumbered liquidity be greater than $100.0 million and our net worth be greater than $600.0 million. Under these covenants, our General CECL Allowance is added back to our net worth calculation. As of both September 30, 2025 and December 31, 2024, we were in compliance with these covenants.

To manage our exposure to variable cash flows on our borrowings under this construction financing, we entered into an interest rate cap in September 2023. The interest rate cap was extended by one year in September 2024. As of September 30, 2025 and December 31, 2024, the fair value of the interest rate cap was $0.1 million and $0.4 million, respectively, and recorded within derivative assets, net on our condensed consolidated balance sheet. Refer to "Note 10 – Derivatives" for full detail.

As of September 30, 2025 and December 31, 2024, our cost basis in the property was $616.6 million and $540.9 million, respectively and included capitalized construction and financing costs as of September 30, 2025 and December 31, 2024 of $393.3 million and $319.7 million, respectively. We capitalized construction and financing costs of $22.7 million and $75.7 million during the three and nine months ended September 30, 2025, respectively, and $44.0 million and $121.4 million during the three and nine months ended September 30, 2024, respectively.

During the third quarter of 2025, a component of the property reached substantial completion stage and residential units in this component were held available for occupancy. As such, we accounted for this component as a separate project, ceased capitalizing expenses associated with this project and started recording depreciation for such project. Direct and indirect costs attributable to the remainder of the property, which is still undergoing construction, continue to be capitalized.

As of September 30, 2025, our net real estate assets included depreciable assets of $393.2 million, net of $0.1 million in accumulated depreciation, attributable to the building, and $2.1 million, net of de minimis accumulated depreciation, attributable to FF&E.

In accordance with ASC 842, leases at the Brooklyn Multifamily Development are classified as operating leases, accordingly rental revenue is recognized using the straight-line method over the lease terms. We recorded net loss from the property’s operations of $0.8 million for the three and nine months ended September 30, 2025.

Atlanta Hotel

In March 2023, we acquired legal title of the Atlanta Hotel through a deed-in-lieu of foreclosure, and we consolidated the hotel's assets and liabilities at their respective fair values in accordance with ASC 805. The hotel was subsequently classified as held for sale during the second quarter of 2023.

As of March 31, 2024, the Atlanta Hotel no longer met the criteria to be classified as held for sale under ASC 360. In accordance with ASC 360, the REO Fixed Assets were reclassified to their carrying value before classifying as held for sale in June 2023. On the date of reclassification, March 31, 2024, we recorded $3.6 million in depreciation, representing the amount that would have been recorded had the asset remained as held for investment. All other assets and liabilities were reclassified to the corresponding line items on our condensed consolidated balance sheet. No realized gain or loss was recorded in connection with this reclassification.

As of September 30, 2025 and December 31, 2024, the value of net real estate assets related to the Atlanta Hotel was $69.6 million and $69.0 million, respectively. As of September 30, 2025, our net real estate assets included depreciable assets of $42.3 million, net of $7.8 million in accumulated depreciation, attributable to the building, and $9.0 million, net of $4.9 million in accumulated depreciation, attributable to FF&E. As of December 31, 2024, our net real estate assets included depreciable assets of $44.7 million, net of $5.5 million in accumulated depreciation, attributable to the building, and $6.7 million, net of $3.1 million in accumulated depreciation, attributable to FF&E.

For the three and nine months ended September 30, 2025, we recorded net profit/(loss) from the hotel's operations of ($0.6) million and $0.5 million, respectively. For the three and nine months ended September 30, 2024, we recorded net profit/(loss) from the hotel's operations of $0.4 million and ($1.2) million, respectively.