Multi-family Loans, at Fair Value

9 Months Ended

Sep. 30, 2025

5. Multi-family Loans, at Fair Value

The Company's multi-family loans consisting of its preferred equity in, and mezzanine loans to, entities that have multi-family real estate assets are presented at fair value on the Company's condensed consolidated balance sheets as a result of a fair value election. Accordingly, changes in fair value are presented in unrealized gains (losses), net on the Company's condensed consolidated statements of operations. Multi-family loans consist of the following as of September 30, 2025 and December 31, 2024, respectively (dollar amounts in thousands):


	September 30, 2025		December 31, 2024
Investment amount	$	72,313	$	90,485
Unrealized losses, net	(3,666)		(4,293)
Total, at Fair Value	$	68,647	$	86,192

For the three and nine months ended September 30, 2025, the Company recognized $0.1 million and $0.6 million in net unrealized gains on multi-family loans, respectively. For the three and nine months ended September 30, 2024, the Company recognized $0.2 million in net unrealized gains and $4.6 million in net unrealized losses on multi-family loans, respectively.

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 September 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.

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


	September 30, 2025		December 31, 2024
Texas	46.8	%	36.1	%
Florida	15.1	%	11.6	%
Louisiana	11.2	%	8.8	%
North Carolina	7.7	%	6.2	%
Arkansas	7.6	%	10.3	%
Indiana	7.0	%	5.6	%