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Segment Reporting | 9 Months Ended
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Sep. 30, 2025
Segment Reporting [Abstract] |
Segment Reporting | 25. Segment Reporting As of September 30, 2025, the Company operates in two reportable segments: (i) investment portfolio and (ii) Constructive. The accounting policies applied to the segments are the same as those described in Note 2 to the Consolidated Financial Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, as updated in Note 2 in this Quarterly Report on Form 10-Q, with the exception of allocations of certain corporate expenses not directly assigned or allocated to one of the Company's two reportable segments. The activities within Corporate/Other are reconciling items to the condensed consolidated financial statements and primarily consist of general and administrative expenses not directly attributable to Constructive, interest expense on senior unsecured notes and subordinated debentures (see Note 15), financing transaction costs unrelated to securitizations and preferred stock dividends. The Company is in the business of acquiring, investing in, financing and managing primarily mortgage-related residential assets (the “investment portfolio”) in the United States, which includes residential loans, investment securities, multi-family loans and equity investments and single-family rental properties. The Company derives revenues from management of the investment portfolio, including interest income, net income (loss) from real estate and other income. On July 15, 2025, the Company acquired the outstanding 50% ownership interests in Constructive through the consummation of a membership interest purchase agreement. Constructive is a business purpose loan lender specializing in rental and transitional loans for real estate investors that derives revenues from the origination and sale of loans. In the normal course of business, business purpose loans are originated by Constructive and may subsequently be transferred to the investment portfolio segment as whole loans. All business purpose loans are accounted for under the fair value option and amounts transferred between reportable segments are accounted for at fair value at the time of transfer. The structure of the reportable segments is differentiated by the nature of the business activities, which is consistent with the reporting structure of the Company and the financial information provided to the Company’s chief operating decision maker (“CODM”). The CODM is the Company’s Chief Executive Officer. The operating results of the Company’s investment portfolio and Constructive are regularly reviewed by the CODM based upon segment assets and net income (loss) before income taxes. The CODM utilizes the information reviewed to evaluate financial performance, benchmark results to those of peers and monitor actual performance against projected performance. Net income (loss) before income taxes is a key determinant of the Company’s book value (calculated as the Company’s stockholders’ equity attributable to common stockholders divided by outstanding common shares), a measure that is used by the CODM to evaluate Company performance overall and with respect to its peers and which is a component of the calculation of management’s compensation. Based upon the inputs discussed above, strategy and financing and capital and resource allocations rely on the determination of the CODM. Prior to the acquisition of a controlling financial interest in Constructive in July 2025, the Company consisted of a single operating and reporting segment and the condensed consolidated financial statements and notes thereto were a single reportable segment. Accordingly, segment information for prior periods has not been recast. For the three and nine months ended September 30, 2024, the CODM also considered significant, and regularly reviewed, consolidated salaries and benefits expense in the amounts of approximately $8.4 million and $25.2 million, respectively, which is included in general and administrative expenses in the accompanying condensed consolidated statements of operations. The following tables present financial information by reportable segment for the three and nine months ended September 30, 2025, respectively, which in total reconciles to the same data for the Company on a consolidated basis (dollar amounts in thousands):
| For the Three Months Ended September 30, 2025
| Investment Portfolio |  | Constructive |  | Corporate/Other |  | Total
NET INTEREST INCOME: |  |  |  |  |  |  |
Interest income | $ | 158,421 |  |  | $ | 2,192 |  |  | $ | 20 |  |  | $ | 160,633 |
Interest expense | 113,398 |  |  | 2,068 |  |  | 8,581 |  |  | 124,047 |
Total net interest income (loss) | 45,023 |  |  | 124 |  |  | (8,561) |  |  | 36,586 |
NET LOSS FROM REAL ESTATE: |  |  |  |  |  |  |
Rental income | 16,600 |  |  | — |  |  | — |  |  | 16,600 |
Other real estate income | 2,504 |  |  | — |  |  | — |  |  | 2,504 |
Total income from real estate | 19,104 |  |  | — |  |  | — |  |  | 19,104 |
Interest expense, mortgages payable on real estate | 5,409 |  |  | — |  |  | — |  |  | 5,409 |
Depreciation and amortization | 5,936 |  |  | — |  |  | — |  |  | 5,936 |
Other real estate expenses | 11,637 |  |  | — |  |  | — |  |  | 11,637 |
Total expenses related to real estate | 22,982 |  |  | — |  |  | — |  |  | 22,982 |
Total net loss from real estate | (3,878) |  |  | — |  |  | — |  |  | (3,878) |
OTHER INCOME (LOSS): |  |  |  |  |  |  |
Realized losses, net | (5,610) |  |  | — |  |  | — |  |  | (5,610) |
Unrealized gains (losses), net | 60,024 |  |  | — |  |  | (5,172) |  |  | 54,852 |
Loss on derivative instruments, net | (10,912) |  |  | (1,941) |  |  | (153) |  |  | (13,006) |
Mortgage banking activities, net | — |  |  | 14,103 |  |  | — |  |  | 14,103 |
(Loss) income from equity investments | (1,642) |  |  | — |  |  | 47 |  |  | (1,595) |
Impairment of real estate | (1,619) |  |  | — |  |  | — |  |  | (1,619) |
Other income (loss) | 1,479 |  |  | — |  |  | — |  |  | 1,479 |
Total other income (loss) | 41,720 |  |  | 12,162 |  |  | (5,278) |  |  | 48,604 |
GENERAL, ADMINISTRATIVE AND OPERATING EXPENSES: |  |  |  |  |  |  |
General and administrative expenses | 463 |  |  | 12,274 |  |  | 10,612 |  |  | 23,349 |
Portfolio operating expenses | 6,040 |  |  | — |  |  | 707 |  |  | 6,747 |
Loan origination costs | — |  |  | 3,788 |  |  | — |  |  | 3,788 |
Financing transaction costs | 4,306 |  |  | — |  |  | 3,635 |  |  | 7,941 |
Total general, administrative and operating expenses | 10,809 |  |  | 16,062 |  |  | 14,954 |  |  | 41,825 |
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | 72,056 |  |  | (3,776) |  |  | (28,793) |  |  | 39,487 |
Income tax expense (benefit) | 12 |  |  | — |  |  | (310) |  |  | (298) |
NET INCOME (LOSS) | 72,044 |  |  | (3,776) |  |  | (28,483) |  |  | 39,785 |
Net loss attributable to non-controlling interests | 5,035 |  |  | — |  |  | — |  |  | 5,035 |
NET INCOME (LOSS) ATTRIBUTABLE TO COMPANY | 77,079 |  |  | (3,776) |  |  | (28,483) |  |  | 44,820 |
Preferred stock dividends | — |  |  | — |  |  | (12,118) |  |  | (12,118) |
NET INCOME (LOSS) ATTRIBUTABLE TO COMPANY'S COMMON STOCKHOLDERS | $ | 77,079 |  |  | $ | (3,776) |  |  | $ | (40,601) |  |  | $ | 32,702 |
| For the Nine Months Ended September 30, 2025
| Investment Portfolio |  | Constructive |  | Corporate/Other |  | Total
NET INTEREST INCOME: |  |  |  |  |  |  |
Interest income | $ | 429,025 |  |  | $ | 2,192 |  |  | $ | 51 |  |  | $ | 431,268 |
Interest expense | 303,038 |  |  | 2,068 |  |  | 20,031 |  |  | 325,137 |
Total net interest income (loss) | 125,987 |  |  | 124 |  |  | (19,980) |  |  | 106,131 |
NET LOSS FROM REAL ESTATE: |  |  |  |  |  |  |
Rental income | 51,940 |  |  | — |  |  | — |  |  | 51,940 |
Other real estate income | 8,457 |  |  | — |  |  | — |  |  | 8,457 |
Total income from real estate | 60,397 |  |  | — |  |  | — |  |  | 60,397 |
Interest expense, mortgages payable on real estate | 17,298 |  |  | — |  |  | — |  |  | 17,298 |
Depreciation and amortization | 17,759 |  |  | — |  |  | — |  |  | 17,759 |
Other real estate expenses | 34,466 |  |  | — |  |  | — |  |  | 34,466 |
Total expenses related to real estate | 69,523 |  |  | — |  |  | — |  |  | 69,523 |
Total net loss from real estate | (9,126) |  |  | — |  |  | — |  |  | (9,126) |
OTHER INCOME: |  |  |  |  |  |  |
Realized losses, net | (50,481) |  |  | — |  |  | — |  |  | (50,481) |
Unrealized gains, net | 197,450 |  |  | — |  |  | 220 |  |  | 197,670 |
(Losses) gains on derivative instruments, net | (87,995) |  |  | (1,941) |  |  | 3,162 |  |  | (86,774) |
Mortgage banking activities, net | — |  |  | 14,103 |  |  | — |  |  | 14,103 |
Income (loss) from equity investments | 2,121 |  |  | — |  |  | (1,554) |  |  | 567 |
Impairment of real estate | (9,437) |  |  | — |  |  | — |  |  | (9,437) |
Other income | 5,644 |  |  | — |  |  | — |  |  | 5,644 |
Total other income | 57,302 |  |  | 12,162 |  |  | 1,828 |  |  | 71,292 |
GENERAL, ADMINISTRATIVE AND OPERATING EXPENSES: |  |  |  |  |  |  |
General and administrative expenses | 1,277 |  |  | 12,274 |  |  | 33,998 |  |  | 47,549 |
Portfolio operating expenses | 20,040 |  |  | — |  |  | 1,267 |  |  | 21,307 |
Loan origination costs | — |  |  | 3,788 |  |  | — |  |  | 3,788 |
Financing transaction costs | 6,589 |  |  | — |  |  | 7,584 |  |  | 14,173 |
Total general, administrative and operating expenses | 27,906 |  |  | 16,062 |  |  | 42,849 |  |  | 86,817 |
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | 146,257 |  |  | (3,776) |  |  | (61,001) |  |  | 81,480 |
Income tax expense | 26 |  |  | — |  |  | 163 |  |  | 189 |
NET INCOME (LOSS) | 146,231 |  |  | (3,776) |  |  | (61,164) |  |  | 81,291 |
Net loss attributable to non-controlling interests | 14,231 |  |  | — |  |  | — |  |  | 14,231 |
NET INCOME (LOSS) ATTRIBUTABLE TO COMPANY | 160,462 |  |  | (3,776) |  |  | (61,164) |  |  | 95,522 |
Preferred stock dividends | — |  |  | — |  |  | (36,021) |  |  | (36,021) |
NET INCOME (LOSS) ATTRIBUTABLE TO COMPANY'S COMMON STOCKHOLDERS | $ | 160,462 |  |  | $ | (3,776) |  |  | $ | (97,185) |  |  | $ | 59,501 |
The following table presents the Company's assets by reportable segment as of September 30, 2025, which in total reconciles to the same data for the Company on a consolidated basis (dollar amounts in thousands):
|  | Investment Portfolio (1) |  | Constructive (2) |  | Corporate/Other |  | Total
Total Assets |  | $ | 11,983,324 |  |  | $ | 224,261 |  |  | $ | 194,277 |  |  | $ | 12,401,862 |
(1)The Company had investments in equity method investees in the amount of approximately $28.8 million as of September 30, 2025 (see Note 6). During the nine months ended September 30, 2025, the Company's expenditures for long-lived assets totaled approximately $6.9 million. (2)Goodwill in the amount of approximately $22.4 million was allocated to Constructive during the three months ended September 30, 2025 (see Note 24).

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