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Commercial Mortgage Loans, Subordinate Loans and Other Lending Assets, Net (Tables)

9 Months Ended

Sep. 30, 2025

Our loan portfolio was comprised of the following at September 30, 2025 and December 31, 2024 ($ in thousands):


Loan Type	September 30, 2025		December 31, 2024
Commercial mortgage loans, net(1)	$	8,149,855	$	6,715,347
Subordinate loans, net		153,790		388,809
Total loans, net	$	8,303,645	$	7,104,156
Note receivable, held for sale		—		41,200
Carrying value, net	$	8,303,645	$	7,145,356

(1)

Includes $61.2 million and $8.3 million in 2025 and 2024, respectively, of contiguous financing structured as subordinate loans.

Schedule of Activity Related to Loan Investment Portfolio

Activity relating to our loan portfolio for the nine months ended September 30, 2025 was as follows ($ in thousands):


	Principal Balance			Deferred Fees/Other Items			Specific CECL Allowance			Carrying Value, Net(1)
December 31, 2024	$	7,550,410		$	(31,718	)	$	(342,500	)	$	7,176,192
New loan fundings	$	2,183,157		$	—		$	—		$	2,183,157
Add-on loan fundings(2)	$	701,538		$	—		$	—		$	701,538
Loan repayments and sale	$	(2,057,725	)	$	—		$	—		$	(2,057,725	)
Gain (loss) on foreign currency translation	$	353,903		$	(1,329	)	$	—		$	352,574
Realized loss on investment(3)	$	(7,436	)	$	—		$	—		$	(7,436	)
Decrease in Specific CECL Allowance	$	—		$	—		$	7,500		$	7,500
Deferred fees and other items(4)	$	—		$	(36,912	)	$	—		$	(36,912	)
Amortization of fees	$	4,785		$	19,229		$	—		$	24,014
September 30, 2025	$	8,728,632		$	(50,730	)	$	(335,000	)	$	8,342,902
General CECL Allowance(5)										$	(39,257	)
Carrying value, net										$	8,303,645

(1)

Includes Note receivable, held for sale as of December 31, 2024. The Note receivable, held for sale was sold during the third quarter of 2025.

(2)

Represents fundings subsequent to loan closing.

(3)

Realized loss on investment includes $6.2 million related to discounted payoff of the Michigan Office Loan (as defined and discussed below) and $1.2 million related to the sale of a promissory note previously recorded as Note receivable, held for sale (refer to Loans and Other Lending Assets Held for Sale in "Note 3 – Fair Value Disclosure").

(4)

Other items primarily consist of purchase discounts or premiums, cost recovery interest, exit fees, and deferred origination expenses.

(5)

$5.8 million of the General CECL Allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable, accrued expenses and other liabilities in our condensed consolidated balance sheet.

Schedule of Overall Statistics for the Loan Portfolio

The following table details overall statistics for our loan portfolio at the dates indicated ($ in thousands):


	September 30, 2025			December 31, 2024(1)
Number of loans		54			46
Principal balance	$	8,728,632		$	7,550,410
Carrying value, net	$	8,303,645		$	7,145,356
Unfunded loan commitments(2)	$	1,034,562		$	840,627
Weighted-average cash coupon(3)		7.0	%		7.5	%
Weighted-average remaining fully-extended term(4)	3.0 years			2.5 years
Weighted-average expected term(5)	2.2 years			1.9 years

(1)

Includes Note receivable, held for sale.

(2)

Unfunded loan commitments are primarily funded to finance construction costs, tenant improvements, leasing commissions, or carrying costs. These future commitments are funded over the term of each loan, subject in certain cases to an expiration date.

(3)

For floating rate loans, based on applicable benchmark rates as of the specified dates. For loans placed on nonaccrual, the interest rate used in calculating weighted-average cash coupon is 0%.

(4)

Assumes all extension options are exercised.

(5)

Expected term represents our estimated timing of repayments as of the specified dates. Excludes risk-rated five loans.

Schedule of Mortgage Loans on Real Estate

Property Type

The table below details the property type of the properties securing the loans in our portfolio at the dates indicated ($ in thousands):


	September 30, 2025				December 31, 2024
Property Type	Carrying Value			% of Portfolio(1)	Carrying Value			% of Portfolio(1)
Residential(2)	$	2,545,682		30.5%	$	1,556,819		21.8%
Office		2,040,028		24.5		1,756,965			24.6
Hotel		1,459,879		17.5		1,575,270		22.1
Industrial		832,824		10.0		399,546		5.6
Data Centers		445,539		5.3		—			0.0
Retail		359,497		4.3		946,017		13.3
Mixed Use		304,376		3.6		363,211		5.1
Other(3)		355,077		4.3		537,164		7.5
Total	$	8,342,902		100.0%	$	7,134,992		100.0%
General CECL Allowance(4)		(39,257	)			(30,836	)
Total Carrying Value, net	$	8,303,645			$	7,104,156

(1)

Percentage of portfolio calculations are made prior to consideration of General CECL Allowance.

(2)

Includes senior housing (10.5%), multifamily (9.1%), student housing (5.3%), residential-for-sale (3.7%), and vacation rentals (1.9%) in 2025 and senior housing (4.7%), multifamily (4.7%), student housing (4.6%), residential-for-sale (5.5%), and vacation rentals (2.3%) in 2024.

(3)

Other property types include pubs (2.7%) and urban predevelopment (1.6%) in 2025, and pubs (2.9%), caravan parks (2.7%), and urban predevelopment (1.9%) in 2024.

(4)

$5.8 million and $5.9 million of the General CECL Allowance for 2025 and 2024, respectively, is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable, accrued expenses and other liabilities in our condensed consolidated balance sheets.

Geography

The table below details the geographic distribution of the properties securing the loans in our portfolio at the dates indicated ($ in thousands):


	September 30, 2025				December 31, 2024
Geographic Location	Carrying Value			% of Portfolio(1)	Carrying Value			% of Portfolio(1)
United Kingdom	$	2,548,921		30.5%	$	2,423,856		33.9%
New York City		1,412,227		16.9		1,539,995		21.6
Other Europe(2)		1,175,077		14.1		1,265,344		17.7
Southeast		888,876		10.7		511,742		7.2
West		807,665		9.7		489,008		6.9
Midwest		751,192		9.0		560,436		7.9
Other(3)		758,944		9.1		344,611		4.8
Total	$	8,342,902		100.0%	$	7,134,992		100.0%
General CECL Allowance(4)		(39,257	)			(30,836	)
Total Carrying Value, net	$	8,303,645			$	7,104,156

(1)

Percentage of portfolio calculations are made prior to consideration of General CECL Allowance.

(2)

Other Europe includes Germany (8.3%), Italy (2.3%%), Sweden (3.2%) and the Netherlands (0.3%) in 2025 and Germany (8.4%), Italy (2.4%), Spain (3.5%), Sweden (3.1%) and the Netherlands (0.3%) in 2024.

(3)

Other includes Northeast (3.4%), Mid-Atlantic (1.4%), Southwest (3.1%) and Other (1.2%) in 2025 and Northeast (0.6%), Mid-Atlantic (1.4%), Southwest (1.5%) and Other (1.3%) in 2024.

(4)

Schedule of Carrying Value of Loan Portfolio Based on Internal Risk Ratings

The following tables present the carrying value of our loan portfolio by year of origination and internal risk rating and gross write-offs by year of origination as of September 30, 2025 and December 31, 2024, respectively ($ in thousands):


September 30, 2025
							Amortized Cost(1) by Year Originated
Risk Rating	Number of Loans		Total			% of Portfolio	2025		2024		2023		2022		2021		Prior
1		—	$	—		— %	$	—	$	—	$	—	$	—	$	—	$	—
2		2		684,207		8.2%	$	—	$	—	$	—	$	684,207	$	—	$	—
3		49		7,461,533		89.4%	$	2,257,997	$	1,507,990	$	716,376	$	948,802	$	1,051,766	$	978,602
4		1		73,112		0.9%	$	—	$	—	$	—	$	—	$	—	$	73,112
5		2		124,050		1.5%	$	—	$	—	$	—	$	—	$	—	$	124,050
Total		54	$	8,342,902		100.0%		2,257,997		1,507,990		716,376		1,633,009		1,051,766		1,175,764
General CECL Allowance(2)				(39,257	)
Total loans, net			$	8,303,645
Weighted-Average Risk Rating				3.0
Gross write-offs			$	6,200			$	—	$	—	$	—	$	—	$	—	$	6,200


December 31, 2024
									Amortized Cost(1) by Year Originated
Risk Rating	Number of Loans		Total			% of Portfolio			2024		2023		2022		2021		2020		Prior
1		—	$	—			—	%	$	—	$	—	$	—	$	—	$	—	$	—
2		3		560,180		7.9%				—		—		547,851		12,329		—		—
3		37		6,169,860		86.4%				1,218,189		649,599		1,549,750		1,173,982		397,972		1,180,368
4		2		279,732		3.9%				—		—		—		—		—		279,732
5		3		125,220		1.8%				—		—		—		—		27,881		97,339
Total		45	$	7,134,992		100.0%			$	1,218,189	$	649,599	$	2,097,601	$	1,186,311	$	425,853	$	1,557,439
General CECL Allowance(2)				(30,836	)
Total loans, net			$	7,104,156
Weighted-Average Risk Rating				3.0
Gross write-offs			$	127,512					$	—	$	—	$	127,512	$	—	$	—	$	—

(1)

Net of Specific CECL Allowance.

(2)

Schedule of CECL Reserves

The following table summarizes changes in CECL Allowances for the nine months ended September 30, 2025 ($ in thousands):


	Specific CECL			General CECL Allowance							Total CECL			CECL Allowance as % of Amortized Cost
	Allowance(1)			Funded		Unfunded			Total		Allowance			General(1)			Total
December 31, 2024	$	342,500		$	30,836	$	5,948		$	36,784	$	379,284			0.52	%		5.07	%
Changes:
Allowances (Reversals), net(2)		—			3,876		132			4,008		4,008
March 31, 2025	$	342,500		$	34,712	$	6,080		$	40,792	$	383,292			0.54	%		4.75	%
Changes:
Allowances (Reversals), net(3)		—			4,136		(1,023	)		3,113		3,113
June 30, 2025	$	342,500		$	38,848	$	5,057		$	43,905	$	386,405			0.51	%		4.29	%
Changes:
Allowances (Reversals), net(4)(5)		(1,300	)		409		725			1,134		(166	)
Write-offs(5)		(6,200	)		—		—			—		(6,200	)
September 30, 2025	$	335,000		$	39,257	$	5,782		$	45,039	$	380,039			0.55	%		4.38	%

(1)

Loans evaluated for Specific CECL Allowance are excluded from General CECL Allowance pool.

(2)

During the three months ended March 31, 2025, our General CECL Allowance increased by $4.0 million. The increase was primarily due to a more adverse macroeconomic outlook as well as the effect of loan originations. The increase was partially offset by the favorable impacts of portfolio seasoning.

(3)

During the three months ended June 30, 2025, our General CECL Allowance increased by $3.1 million. The increase was primarily due to the effect of loan originations as well as extending our expected loan repayment dates. The increase was partially offset by the favorable impacts of portfolio seasoning.

(4)

During the three months ended September 30, 2025, our General CECL Allowance increased by $1.1 million. The increase was primarily due to the effect of loan originations as well as extending our expected loan repayment dates. The increase was partially offset by the favorable impacts of portfolio seasoning and a more optimistic macroeconomic outlook.

(5)

During the three months ended September 30, 2025, we recorded a reversal of $1.3 million and a write-off of $6.2 million of our Specific CECL Allowance related to our Michigan Office Loan (as defined and discussed below). The $6.2 million write-off was recorded as a realized loss within net realized loss on investments in our September 30, 2025 condensed consolidated statement of operations.

The following table summarizes changes in CECL Allowances for the nine months ended September 30, 2024 ($ in thousands):


	Specific CECL			General CECL Allowance									Total CECL			CECL Allowance as % of Amortized Cost
	Allowance(1)			Funded			Unfunded			Total			Allowance			General(1)			Total
December 31, 2023	$	193,000		$	26,482		$	4,017		$	30,499		$	223,499			0.38	%		2.61	%
Changes:
Allowances (Reversals), net(2)		142,000			6,076			(392	)		5,684			147,684
March 31, 2024	$	335,000		$	32,558		$	3,625		$	36,183		$	371,183			0.44	%		4.29	%
Changes:
Allowances (Reversals), net(3)		7,500			2,761			(3	)		2,758			10,258
June 30, 2024	$	342,500		$	35,319		$	3,622		$	38,941		$	381,441			0.47	%		4.40	%
Changes:
Allowances (Reversals), net(4)(5)		127,512			(1,127	)		228			(899	)		126,613
Write-offs(5)		(127,512	)		—			—			—			(127,512	)
September 30, 2024	$	342,500		$	34,192		$	3,850		$	38,042		$	380,542			0.49	%		4.64	%

(1)

Loans evaluated for Specific CECL Allowance are excluded from General CECL Allowance pool.

(2)

During the three months ended March 31, 2024, our General CECL Allowance increased by $5.7 million. The increase was primarily related to extending our expected loan repayment dates as well as an increase to the historical loss rate derived from Trepp's data. The increase was partially offset by the favorable impacts of portfolio seasoning. During the three months ended March 31, 2024, we also recorded an additional $142.0 million Specific CECL Allowance on our Junior Mezzanine A Loan (as defined below - see "Manhattan Residential"), resulting in the loan’s aggregate Specific CECL allowance of $268.0 million. The additional allowance was recorded primarily due to a reduction in list pricing of remaining units and slower sales pace at the property. The slower sales velocity coincided with the continued overall softening in the midtown Manhattan ultra-luxury submarket.

(3)

During the three months ended June 30, 2024, our General CECL Allowance increased by $2.8 million primarily due to new loan originations as well as a more adverse outlook on our office portfolio. The increase was partially offset by the favorable impacts of portfolio seasoning. Additionally, during the three months ended June 30, 2024, we recorded an increase of $7.5 million to our Specific CECL Allowance. The increase was related to a mezzanine loan secured by an office building in Troy, MI.

(4)

During the three months ended September 30, 2024, our General CECL Allowance decreased by $0.9 million primarily due to the favorable impacts of portfolio seasoning and earlier than expected loan repayments. The decrease was partially offset by the effects of loan originations and a more adverse macroeconomic outlook associated with our office portfolio.

(5)

During the three months ended September 30, 2024, we recorded an increase and write-off of $127.5 million of our Specific CECL Allowance related to our Massachusetts Healthcare Loan (as defined and discussed below). The $127.5 million write-off was recorded as a realized loss within net realized loss on investments in our September 30, 2024 condensed consolidated statement of operations.

The following table sets forth our General CECL Allowance as of September 30, 2025 and December 31, 2024 ($ in thousands):


	September 30, 2025		December 31, 2024
Commercial mortgage loans, net	$	39,142	$	30,167
Subordinate loans, net		115		669
Unfunded commitments(1)		5,782		5,948
Total General CECL Allowance	$	45,039	$	36,784

(1)

The General CECL Allowance on unfunded commitments is recorded as a liability on our condensed consolidated balance sheets within accounts payable, accrued expenses and other liabilities.

Financing Receivable Cost Recovery

The following table summarizes our risk rated 5 loans as of September 30, 2025, which were analyzed for Specific CECL Allowances ($ in thousands):


Type	Property type	Location	Amortized cost prior to Specific CECL Allowance		Specific CECL Allowance		Amortized cost		Interest recognition status/ as of date	Risk Rating
Mortgage	Retail(1)(2)	Cincinnati, OH	$	163,169	$	67,000	$	96,169	Nonaccrual/ 10/1/2019	5
Mezzanine	Residential(3)	Manhattan, NY		295,881		268,000		27,881	Nonaccrual/ 7/1/2021	5
Total			$	459,050	$	335,000	$	124,050

(1)

The fair value of retail collateral was determined by applying a capitalization rate of 9.0%.

(2)

In September 2018, we entered a joint venture with Turner Consulting II, LLC ("Turner Consulting"), through an entity which owns the underlying property that secures our loan. Turner Consulting contributed 10% of the venture's equity and we contributed 90%. The entity was deemed to be a variable interest entity ("VIE"), and we determined that we are not the primary beneficiary of that VIE as we do not have the power to direct the entity's activities. During the second quarter of 2024, the loan's maturity was extended from September 2024 to September 2025.

(3)

The fair value of the residential collateral was determined by making certain projections and assumptions with respect to future performance and a discount rate of 10%. Any future change to the Specific CECL Allowance will be based upon a number of factors, including but not limited to the continued assessment of both the potential nominal value of remaining inventory as well as the expected sales velocity.