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Real Estate, net | 3 Months Ended
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Mar. 31, 2026
Real Estate [Abstract] |
Real Estate, net | Real Estate, net The following table presents the Company’s net lease portfolio, net, as of March 31, 2026 and December 31, 2025 (dollars in thousands):
|  | March 31, 2026 |  | December 31, 2025
Land and improvements |  | $ | 78,805 |  |  | $ | 78,805 |
Buildings, building leaseholds, and improvements |  | 287,767 |  |  | 287,767 |
Tenant improvements |  | 13,781 |  |  | 13,781 |
Subtotal |  | $ | 380,353 |  |  | $ | 380,353 |
Less: Accumulated depreciation |  | (89,446) |  |  | (86,871) |
Net lease portfolio, net |  | $ | 290,907 |  |  | $ | 293,482 |
The following table presents the Company’s portfolio of other real estate, net as of March 31, 2026 and December 31, 2025 (dollars in thousands):
|  | March 31, 2026 |  | December 31, 2025
Land and improvements |  | $ | 133,704 |  |  | $ | 127,614 |
Buildings, building leaseholds, and improvements |  | 269,933 |  |  | 262,451 |
Tenant improvements |  | 19,602 |  |  | 18,097 |
Furniture, fixtures and equipment |  | 15,524 |  |  | 13,938 |
Construction-in-progress |  | 7,139 |  |  | 7,972 |
Subtotal |  | $ | 445,902 |  |  | $ | 430,072 |
Less: Accumulated depreciation |  | (45,848) |  |  | (43,775) |
Other portfolio, net |  | $ | 400,054 |  |  | $ | 386,297 |
Depreciation Expense Depreciation expense on real estate was $6.0 million and $7.1 million for the three months ended March 31, 2026 and 2025, respectively. Property Operating Income For the three months ended March 31, 2026 and 2025 the components of property operating income were as follows (dollars in thousands):
|  | Three Months Ended March 31, |  |
| 2026 |  | 2025 |  |  |  |  |  |
Lease revenues |  |  |  |  |  |  |  |  |  |
Minimum lease revenue |  | $ | 17,405 |  |  | $ | 23,870 |  |  |  |  |  |  |
Variable lease revenue |  | 865 |  |  | 3,047 |  |  |  |  |  |  |
|  | $ | 18,270 |  |  | $ | 26,917 |  |  |  |  |  |  |
Hotel operating income |  | 14,373 |  |  | — |  |  |  |  |  |  |
Total property operating income(1) |  | $ | 32,643 |  |  | $ | 26,917 |  |  |  |  |  |  |
_________________________________________ (1)Excludes net amortization income related to above and below-market leases of a de minimis amount for the three months ended March 31, 2026. Excludes net amortization expense related to above and below-market leases of $0.4 million and income of $0.3 million for the three months ended March 31, 2025, respectively. For the three months ended March 31, 2026, the Company had one property with property operating income equal to or greater than 10% of the Company’s total revenue. The property had property operating income of $14.4 million or 17% of the Company’s total revenue. For the three months ended March 31, 2025 the Company had no single property with property operating income equal to or greater than 10% of total revenue of the Company. Real Estate Acquisitions During the three months ended March 31, 2026, the Company acquired legal title to one multifamily property through foreclosure, which is included in real estate, net on the Company’s consolidated balance sheets. During the year ended December 31, 2025, the Company acquired legal title to one multifamily construction/development project and one office property through deeds-in-lieu of foreclosure, and one hotel property via foreclosure, all of which are included in real estate, net on the Company’s consolidated balance sheets. The office property was subsequently sold. See “Real Estate Sales” below for further detail on the gain on sale. The Company previously held an investment in a senior loan collateralized by a multifamily property in Mesa, Arizona that was determined to be a VIE. The Company was determined to be the primary beneficiary of the VIE and consolidated the assets and liabilities as well as the operations of the multifamily property in February 2025. The multifamily property is included in real estate, net on the Company’s consolidated balance sheets. The consolidation did not result in a gain or loss. In accordance with ASC 805-50, the Company allocated the fair value of the assumed assets and liabilities on the respective acquisition dates for each property acquired. The following table summarizes the Company’s real estate acquisitions for the three months ended March 31, 2026 and year ended December 31, 2025 (dollars in thousands):
|  |  |  |  |  | Purchase Price Allocation
Acquisition Date | Property Type and Location | Number of Buildings/Units(1) |  | Purchase Price |  | Land and Improvements(2) |  | Building and Improvements(2) |  |  |  | Furniture and Fixtures(2) |  | Lease Intangible Assets(2) |  | Other Assets |  | Lease Intangible Liabilities(2) |  | Other Liabilities
Three Months Ended March 31, 2026 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
January 2026 | Multifamily - Texas(3) | 624 |  | $ | 45,400 |  |  | $ | 13,486 |  |  | $ | 25,944 |  |  |  |  | $ | 1,235 |  |  | $ | 4,126 |  |  | $ | 2,876 |  |  | $ | — |  |  | $ | (2,267) |
Year Ended December 31, 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
September 2025 | Office - Oregon(3) | 8 |  | 21,100 |  |  | 10,913 |  |  | 5,105 |  |  |  |  | — |  |  | 4,567 |  |  | 1,849 |  |  | (298) |  |  | (1,036) |
July 2025 | Multifamily/Pre-dev - California(3)(4) | n/a |  | 39,760 |  |  | 39,760 |  |  | — |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
May 2025 | Hotel - California(3) | 541 |  | 139,126 |  |  | 36,166 |  |  | 91,719 |  |  |  |  | 10,197 |  |  | 80 |  |  | 10,034 |  |  | — |  |  | (9,070) |
February 2025 | Multifamily - Arizona(5) | 285 |  | 31,965 |  |  | 9,007 |  |  | 21,051 |  |  |  |  | 270 |  |  | 1,456 |  |  | 708 |  |  | — |  |  | (527) |
|  |  |  | $ | 277,351 |  |  | $ | 109,332 |  |  | $ | 143,819 |  |  |  |  | $ | 11,702 |  |  | $ | 10,229 |  |  | $ | 15,467 |  |  | $ | (298) |  |  | $ | (12,900) |
_________________________________________ (1) For multifamily properties, represents number of units. For hotels, it represents number of rooms. (2) Useful life of real estate acquired is 28 to 40 years for buildings, four to 15 years for tenant improvements, four to nine for furniture and fixtures, and one to 12 years for lease intangibles. (3) Represents assets acquired by the Company through foreclosure or a deed-in-lieu of foreclosure. (4) Represents a multifamily construction/development project located in California. (5) Represents a multifamily property held in a VIE for which the Company was deemed the primary beneficiary. The Company consolidated the assets, liabilities and the property's operations on the acquisition date in accordance with ASC 810. Impairment There was no impairment recorded during the three months ended March 31, 2026 and 2025, respectively. Real Estate Sales During three months ended March 31, 2026, the Company sold one office property for a total gross sales price of $28.0 million. The Company recorded a net gain on the sale of $0.1 million and it is included in other loss, net on the Company’s consolidated statement of operations. During the year ended December 31, 2025, the Company sold three office properties and one multifamily property previously acquired through deeds-in-lieu of foreclosure for a total gross sales price of $85.6 million. Prior to the sale of one office property, the Company recorded an impairment loss of $6.3 million due to shortening the expected hold period. The impairment loss was based on the net proceeds received from the sale. This is included in impairment of operating real estate in the Company’s consolidated statement of operations. The net gain of $1.1 million on three office properties and one multifamily property is included in other gain (loss), net on the Company’s consolidated statement of operations.

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- Definition The entire disclosure for certain real estate investment financial statements, real estate investment trust operating support agreements, real estate owned, retail land sales, time share transactions, as well as other real estate related disclosures. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 974 -SubTopic 720 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477728/974-720-50-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 976 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/976/tableOfContent Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 978 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/978/tableOfContent Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 970 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/970/tableOfContent Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 972 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/972/tableOfContent Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 974 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/974/tableOfContent + Details
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