Multi-family Loans, at Fair Value (Tables)

6 Months Ended

Jun. 30, 2025

Schedule of Mezzanine Loans and Preferred Equity Investments

Multi-family loans consist of the following as of June 30, 2025 and December 31, 2024, respectively (dollar amounts in thousands):


	June 30, 2025		December 31, 2024
Investment amount	$	78,808	$	90,485
Unrealized losses, net	(3,809)		(4,293)
Total, at Fair Value	$	74,999	$	86,192

During the three and six months ended June 30, 2025 and 2024, the Company invested in subordinated securities issued by Freddie Mac-sponsored residential loan securitizations, resulting in the initial consolidation of the VIEs as shown below (dollar amounts in thousands):


	For the Three and Six Months Ended June 30,
	2025		2024
Residential loans, at fair value	$	247,405	$	285,057
Collateralized debt obligations, at fair value	(235,226)		(275,200)
Net investment	$	12,179	$	9,857

The following tables present condensed statements of operations for non-Company-sponsored VIEs for the three and six months ended June 30, 2025 and 2024, respectively (dollar amounts in thousands). The following tables include net (loss) income from assets and liabilities of disposal group held for sale and intercompany balances have been eliminated for purposes of this presentation.


	For the Three Months Ended June 30,
	2025						2024
	Consolidated SLST		Consolidated Real Estate		Total		Consolidated SLST		Consolidated Real Estate		Total
Interest income	$	11,890	$	—	$	11,890	$	9,154	$	—	$	9,154
Interest expense	8,429		—		8,429		6,752		—		6,752
Total net interest income	3,461		—		3,461		2,402		—		2,402

Income from real estate	—		18,390		18,390		—		33,535		33,535
Expenses related to real estate	—		20,661		20,661		—		46,882		46,882
Total net loss from real estate	—		(2,271)		(2,271)		—		(13,347)		(13,347)


Unrealized gains, net	5,521		—		5,521		542		—		542
Gains on derivative instruments, net	—		60		60		—		329		329
Impairment of real estate	—		(3,615)		(3,615)		—		(3,557)		(3,557)

Other income	—		1		1		—		4		4
Total other income (loss)	5,521		(3,554)		1,967		542		(3,224)		(2,682)



Net income (loss)	8,982		(5,825)		3,157		2,944		(16,571)		(13,627)
Net loss attributable to non-controlling interest in Consolidated VIEs	—		4,106		4,106		—		8,494		8,494
Net income (loss) attributable to Company	$	8,982	$	(1,719)	$	7,263	$	2,944	$	(8,077)	$	(5,133)


	For the Six Months Ended June 30,
	2025						2024
	Consolidated SLST		Consolidated Real Estate		Total		Consolidated SLST		Consolidated Real Estate		Total
Interest income	$	22,630	$	—	$	22,630	$	17,281	$	—	$	17,281
Interest expense	15,393		—		15,393		12,553		—		12,553
Total net interest income	7,237		—		7,237		4,728		—		4,728

Income from real estate	—		36,876		36,876		—		68,628		68,628
Expenses related to real estate	—		40,688		40,688		—		98,643		98,643
Total net loss from real estate	—		(3,812)		(3,812)		—		(30,015)		(30,015)


Unrealized gains, net	8,785		—		8,785		506		—		506
Gains on derivative instruments, net	—		46		46		—		2,848		2,848
Impairment of real estate	—		(7,180)		(7,180)		—		(35,771)		(35,771)
Loss on reclassification of disposal group	—		—		—		—		(14,636)		(14,636)
Other income	—		3		3		—		7		7
Total other income (loss)	8,785		(7,131)		1,654		506		(47,552)		(47,046)



Net income (loss)	16,022		(10,943)		5,079		5,234		(77,567)		(72,333)
Net loss attributable to non-controlling interest in Consolidated VIEs	—		9,196		9,196		—		30,652		30,652
Net income (loss) attributable to Company	$	16,022	$	(1,747)	$	14,275	$	5,234	$	(46,915)	$	(41,681)

Schedule of Preferred Equity and Mezzanine Loans, Fair Value Compared to Unpaid Principal

The table below presents the fair value and aggregate unpaid principal balance of the Company's multi-family loan in non-accrual status as of June 30, 2025 and December 31, 2024 (dollar amounts in thousands):



Days Late	Fair Value (1)		Unpaid Principal Balance



90 +	$	—	$	3,363

(1)The Company has reduced the fair value of the multi-family loan to zero as a result of developments with respect to the property, its financing and market conditions.

Schedule of Geographic Concentration of Credit Risk Exceeding 5% of Balances

The geographic concentrations of credit risk exceeding 5% of the unpaid principal balance of residential loans, at fair value as of June 30, 2025 and December 31, 2024, respectively, are as follows:


	June 30, 2025						December 31, 2024
	Residential loans		Consolidated SLST		Residential loans held in securitization trusts		Residential loans		Consolidated SLST		Residential loans held in securitization trusts
California	17.0	%	11.1	%	17.4	%	23.0	%	11.7	%	20.2	%
Florida	12.1	%	8.8	%	12.0	%	10.4	%	9.1	%	12.2	%
New York	10.7	%	10.6	%	6.6	%	6.6	%	10.8	%	6.6	%
Texas	6.7	%	4.4	%	7.1	%	6.2	%	4.4	%	7.9	%
New Jersey	6.2	%	6.3	%	5.7	%	8.0	%	6.8	%	5.2	%
Pennsylvania	5.6	%	3.8	%	4.8	%	5.1	%	3.9	%	3.8	%
Ohio	5.1	%	3.4	%	2.7	%	3.6	%	1.6	%	2.0	%
Illinois	2.5	%	7.4	%	3.2	%	2.2	%	6.3	%	3.1	%

The geographic concentrations of credit risk exceeding 5% of the total multi-family loan investment amounts as of June 30, 2025 and December 31, 2024, respectively, are as follows:


	June 30, 2025		December 31, 2024
Texas	42.4	%	36.1	%
Florida	13.7	%	11.6	%
Arkansas	12.1	%	10.3	%
Louisiana	10.3	%	8.8	%
North Carolina	7.1	%	6.2	%
Indiana	6.4	%	5.6	%

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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