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Segment Reporting
 9 Months Ended
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 expense113,398 2,068 8,581 124,047 
Total net interest income (loss)
45,023 124 (8,561)36,586 
NET LOSS FROM REAL ESTATE:
Rental income16,600 — — 16,600 
Other real estate income2,504 — — 2,504 
Total income from real estate19,104 — — 19,104 
Interest expense, mortgages payable on real estate5,409 — — 5,409 
Depreciation and amortization5,936 — — 5,936 
Other real estate expenses11,637 — — 11,637 
Total expenses related to real estate22,982 — — 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 expenses6,040 — 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 interests5,035 — — 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 expense303,038 2,068 20,031 325,137 
Total net interest income (loss)
125,987 124 (19,980)106,131 
NET LOSS FROM REAL ESTATE:
Rental income51,940 — — 51,940 
Other real estate income8,457 — — 8,457 
Total income from real estate60,397 — — 60,397 
Interest expense, mortgages payable on real estate17,298 — — 17,298 
Depreciation and amortization17,759 — — 17,759 
Other real estate expenses34,466 — — 34,466 
Total expenses related to real estate69,523 — — 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 expenses20,040 — 1,267 21,307 
Loan origination costs
— 3,788 — 3,788 
Financing transaction costs6,589 — 7,584 14,173 
Total general, administrative and operating expenses27,906 16,062 42,849 86,817 
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES146,257 (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 interests14,231 — — 14,231 
NET INCOME (LOSS) ATTRIBUTABLE TO COMPANY160,462 (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).