The Company’s primary lease commitment relates to its corporate headquarters. For the three months ended March 31, 2025 and 2024, the Company recorded an expense in connection with this lease of approximately $1.3 million and $1.3 million, respectively. The original term specified in this lease is approximately fifteen years with a termination date of December 2036 and an option to renew for an additional five years.

The Company recognized total lease expense of $1.8 million, and $1.9 million for the three months ended March 31, 2025 and 2024, respectively, which is included in Other general and administrative expense on the Company’s consolidated statements of operations.

At March 31, 2025, the contractual minimum rental payments (exclusive of possible rent escalation charges and normal recurring charges for maintenance, insurance and taxes) for the Company’s lease commitments were as follows:


Year Ending December 31,	Minimum Rental Payments
(In Thousands)
2025 (1)	$	4,385
2026	5,132
2027	5,420
2028	5,221
2029	5,151
Thereafter	36,897
Total	$	62,206
Present Value Discount	(20,891)
Total Lease Liability (Note 7)	$	41,315

(1) Reflects contractual minimum rental payments due for the period from April 01, 2025 through December 31, 2025.

Additionally, in December 2024, Lima One executed a lease agreement on new office space in Greenville, South Carolina for an 8.5-year term. The Company expects the average annual lease rental expense to be approximately $2.4 million, which is not included in the table above. Lima One expects to relocate to the space in the latter half of 2025.

(b) Representations and Warranties in Connection with Loan Securitization and Other Loan Sale Transactions

In connection with the loan securitization and sale transactions entered into by the Company, the Company has the obligation under certain circumstances to repurchase assets previously transferred to securitization vehicles, or otherwise sold, upon breach of certain representations and warranties. As of March 31, 2025, the Company was not aware of any material unsettled repurchase claims that would require a reserve (see Note 14).

At March 31, 2025, the Company had unfunded commitments in connection with its Single-family and Multifamily transitional loans of $286.7 million and $47.8 million, respectively (see Note 3). These commitments are subject to certain conditions that the respective borrowers must meet before funding is required. In addition, from time to time, Lima One makes short-term commitments to originate mortgage loans; such commitments were not significant at March 31, 2025.

In connection with one of its investments in a loan origination partner, as of March 31, 2025, the Company has guaranteed up to $51 million of such investee’s warehouse financing. As of March 31, 2025, the Company has not recorded a liability in connection with this guarantee.