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Commitments and Contingencies | 9 Months Ended
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Sep. 30, 2025
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies | Commitments and Contingencies (a) Lease Commitments The Company’s primary lease commitment relates to its corporate headquarters. For the three months ended September 30, 2025 and 2024, the Company recorded an expense in connection with this lease of approximately $1.4 million and $1.3 million, respectively, and $4.0 million and $4.1 million for the nine months ended September 30, 2025 and 2024, 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. Additionally, in December 2024, Lima One executed a new office lease for its headquarters in Greenville, South Carolina. Lima One moved into the new office space on July 15, 2025. For the three and nine months ended September 30, 2025, the Company recorded an expense in connection with this lease of approximately $0.6 million and $1.5 million, respectively. The original term specified in this lease is approximately nine years with a termination date of December 2033 and two options to renew for an additional four years for the first extension and an additional five years for the second extension. The Company recognized total lease expense of $2.2 million, and $1.7 million for the three months ended September 30, 2025 and 2024, respectively, and $6.7 million and $5.3 million for the nine months ended September 30, 2025 and 2024, respectively, which is included in Other general and administrative expense on the Company’s consolidated statements of operations. At September 30, 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) |  | $ | 1,735 |
2026 |  | 6,946 |
2027 |  | 7,267 |
2028 |  | 7,083 |
2029 |  | 7,065 |
Thereafter |  | 45,291 |
Total |  | $ | 75,387 |
Present Value Discount |  | (23,896) |
Total Lease Liability (Note 7) |  | $ | 51,491 |
(1) Reflects contractual minimum rental payments due for the period from October 01, 2025 through December 31, 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 September 30, 2025, the Company was not aware of any material unsettled repurchase claims that would require a reserve (see Note 14). (c) Loan Commitments At September 30, 2025, the Company had unfunded commitments in connection with its Single-family and Multifamily transitional loans of $266.6 million and $30.3 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 September 30, 2025. (d) Guarantee In connection with one of its investments in a loan origination partner, as of September 30, 2025, the Company has guaranteed up to $51 million of such investee’s warehouse financing. As of September 30, 2025, the Company has not recorded a loss in connection with this guarantee. (e) Litigation The Company reserves for contingent liabilities when it is determined that a liability is probable and reasonably estimable. Litigation is subject to many factors that are difficult to predict, so there can be no assurance that, in the event of a material unfavorable result in one or more claims, the Company will not incur material costs. The Company is not presently named as defendant in any material litigation arising outside the ordinary course of business. However, the Company is from time to time involved in litigation arising in the course of its business activities. During the three months ended September 30, 2025, the Company recorded an aggregate litigation reserve totaling $1.2 million within Other Income/(Loss), net and estimates additional reasonably possible losses of up to $6.6 million.

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