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Commitments and Contingencies | 3 Months Ended
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Mar. 31, 2026
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies | Commitments and Contingencies Lending Commitments The Company has lending commitments to borrowers pursuant to certain loan agreements in which the borrower may submit a request for funding contingent on achieving certain criteria, which must be approved by the Company as lender, such as leasing, perf ormance of capital expenditures and construction in progress with an approved budget. At March 31, 2026, assuming the terms to qualify for future fundings, if any, had been met, total unfunded lending commitments for loans held for investment were $108.0 million for senior loans, $1.9 million for mezzanine loans and $7.4 million for preferred equity. At December 31, 2025, total unfunded lending commitments for loans held for investment were $101.9 million for senior loans, $2.1 million for mezzanine loans and $8.2 million for preferred equity. Ground Lease Obligation In connection with real estate acquisitions, the Company assumed certain non-cancellable operating ground leases as lessee or sublessee with expiration dates through 2050. Rent on certain ground leases are paid directly by tenants. At March 31, 2026 and December 31, 2025, the weighted average remaining lease term was 11.8 years and 11.8 years for ground leases, respectively. The following table presents ground lease expense, included in property operating expense, for the three months ended March 31, 2026 and 2025 (dollars in thousands):
|  | Three Months Ended March 31, |  |
|  | 2026 |  | 2025 |  |  |  |  |  |
Operating lease expense: |  |  |  |  |  |  |  |  |  |
Minimum lease expense |  | $ | 790 |  |  | $ | 794 |  |  |  |  |  |  |
Variable lease expense |  | — |  |  | — |  |  |  |  |  |  |
|  | $ | 790 |  |  | $ | 794 |  |  |  |  |  |  |
The operating lease liability for ground leases was determined using a weighted average discount rate of 5.4%. The following table presents future minimum rental payments, excluding contingent rents, on noncancellable ground leases on real estate as of March 31, 2026 (dollars in thousands):
Remainder of 2026 |  | $ | 2,390 |
2027 |  | 2,868 |
2028 |  | 2,839 |
2029 |  | 1,896 |
2030 |  | 1,833 |
2031 and thereafter |  | 10,430 |
Total lease payments |  | 22,256 |
Less: Present value discount |  | 6,344 |
Operating lease liability (Note 6) |  | $ | 15,912 |
For these ground leases, the Company has elected the practical expedient to combine lease and related nonlease components as a single lease component. Office Lease At March 31, 2026 and December 31, 2025, the weighted average remaining lease term w as 3.1 years and 3.4 years for office leases, respectively. The office leases are located in New York, New York and Los Angeles, California. For the three months ended March 31, 2026 and 2025, the following table summarizes lease expense, included in operating expense (dollars in thousands):
|  | Three Months Ended March 31, |  |
|  | 2026 |  | 2025 |  |  |  |  |  |
Corporate Offices |  |  |  |  |  |  |  |  |  |
Operating lease expense: |  |  |  |  |  |  |  |  |  |
Fixed lease expense |  | $ | 328 |  |  | $ | 324 |  |  |  |  |  |  |
Variable lease expense |  | — |  |  | — |  |  |  |  |  |  |
|  | $ | 328 |  |  | $ | 324 |  |  |  |  |  |  |
Total cash paid for office leases was $0.1 million for the three months ended March 31, 2026. The operating lease liability for the office leases was determined using a weighted average discount rate of 2.4%. As of March 31, 2026, the Company’s future operating lease commitments for the corporate office leases were as follows (dollars in thousands):
|  | Corporate Offices
Remainder of 2026 |  | $ | 995 |
2027 |  | 1,339 |
2028 |  | 1,155 |
2029 |  | 573 |
2030 |  | — |
2031 and thereafter |  | — |
Total lease payments |  | 4,062 |
Less: Present value discount |  | 151 |
Operating lease liability (Note 6) |  | $ | 3,911 |
For these office leases, the Company has elected the practical expedient to combine lease and related nonlease components as a single lease component. Litigation and Claims The Company may be involved in litigation and claims in the ordinary course of the business. As of March 31, 2026, the Company was not involved in any legal proceedings that are expected to have a material adverse effect on the Company’s results of operations, financial position, or liquidity.

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