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Loans Held for Investment (Tables)

12 Months Ended

Dec. 31, 2024

Receivables [Abstract]

Schedule of Loans

The table below provides overall statistics for our loan portfolio as of December 31, 2024 and 2023:

						As of December 31,
						2024						2023
Number of loans						21						24
Total loan commitments						$	641,213					$	670,293
Unfunded loan commitments (1)						$	30,402					$	40,401
Principal balance						$	610,811					$	629,892
Carrying value						$	601,842					$	622,086
Weighted average coupon rate						8.24		%				9.19		%
Weighted average all in yield (2)						8.62		%				9.64		%
Weighted average floor						2.12		%				1.36		%
Weighted average maximum maturity (years) (3)						2.6						3.0
Weighted average risk rating						3.1						3.0

(1)Unfunded loan commitments are primarily used to finance property improvements and leasing capital and are generally funded over the term of the loan.

(2)All in yield represents the yield on a loan, including amortization of deferred fees over the initial term of the loan and excluding any purchase discount accretion.

(3)Maximum maturity assumes all borrower loan extension options have been exercised, which options are subject to the borrower meeting certain conditions.

The table below represents our loan activities during 2023 and 2024:

						Principal Balance						Deferred Fees and Other Items						Amortized Cost
Balance at December 31, 2022						$	678,555					$	(8,626)					$	669,929
Additional funding						5,650						(14)						5,636
Originations						133,300						(1,621)						131,679
Repayments						(171,748)						(535)						(172,283)
Transfer to real estate owned						(15,865)						(95)						(15,960)
Net amortization of deferred fees						—						3,333						3,333
Purchase discount accretion						—						4,128						4,128
Balance at December 31, 2023						629,892						(3,430)						626,462
Additional funding						12,492						(158)						12,334
Originations						133,817						(1,757)						132,060
Repayments						(165,390)						(594)						(165,984)
Net amortization of deferred fees						—						2,697						2,697
Purchase discount accretion						—						2,347						2,347
Balance at December 31, 2024						$	610,811					$	(895)					$	609,916

The tables below detail the property type and geographic location of the properties securing the loans in our portfolio as of December 31, 2024 and 2023:

						As of December 31,
						2024																		2023
Property Type						Number of Loans						Amortized Cost						Percentage of Value						Number of Loans						Amortized Cost						Percentage of Value
Office						6						$	167,749					28		%				7						$	181,268					29		%
Multifamily						5						163,987						27		%				7						207,734						33		%
Industrial						5						136,646						22		%				5						118,707						19		%
Hotel						3						84,028						14		%				2						45,791						7		%
Retail						2						57,506						9		%				3						72,962						12		%
						21						$	609,916					100		%				24						$	626,462					100		%

						As of December 31,
						2024																		2023
Geographic Location						Number of Loans						Amortized Cost						Percentage of Value						Number of Loans						Amortized Cost						Percentage of Value
South						7						$	192,108					32		%				8						$	222,477					36		%
West						6						142,560						23		%				9						185,294						30		%
East						4						139,899						23		%				3						89,815						14		%
Midwest						4						135,349						22		%				4						128,876						20		%
						21						$	609,916					100		%				24						$	626,462					100		%

Schedule of Carrying Value Excluding Allowance of Credit Losses

As of December 31, 2024 and 2023, the amortized cost of our loan portfolio within each internal risk rating by year of origination was as follows:

December 31, 2024
Risk Rating						Number of Loans						Percentage of Portfolio						2024						2023						2022						2021						Prior						Total
1						—						—		%				$	—					$	—					$	—					$	—					$	—					$	—
2						4						18		%				41,570						53,070						—						15,252						—						109,892
3						12						58		%				91,515						25,086						163,228						76,034						—						355,863
4						5						24		%				—						—						—						114,556						29,605						144,161
5						—						—		%				—						—						—						—						—						—
						21						100		%				$	133,085					$	78,156					$	163,228					$	205,842					$	29,605					$	609,916

December 31, 2023
Risk Rating						Number of Loans						Percentage of Portfolio						2023						2022						2021						Prior						Total
1						—						—		%				$	—					$	—					$	—					$	—					$	—
2						3						15		%				37,323						42,089						15,435						—						94,847
3						18						71		%				94,881						167,491						144,456						38,548						445,376
4						3						14		%				—						—						86,239						—						86,239
5						—						—		%				—						—						—						—						—
						24						100		%				$	132,204					$	209,580					$	246,130					$	38,548					$	626,462

Schedule of Changes to Allowance for Credit Loss

The tables below present the changes to the allowance for credit losses during the years ended December 31, 2024 and 2023:

						Loans Held for Investment, net						Unfunded Loan Commitments						Total
Balance at December 31, 2023						$	4,376					$	1,452					$	5,828
Provision for credit losses						3,698						(618)						3,080
Balance at December 31, 2024						$	8,074					$	834					$	8,908

						Loans Held for Investment, net						Unfunded Loan Commitments						Total
Balance at December 31, 2022						$	—					$	—					$	—
Cumulative-effect adjustment upon adoption of the CECL model						4,893						1,702						6,595
Reversal of credit losses						(549)						(250)						(799)
Write offs (1)						(708)						—						(708)
Recoveries						740						—						740
Balance at December 31, 2023						$	4,376					$	1,452					$	5,828

(1)Write offs for the year ended December 31, 2023 relate to our loan secured by an office property located in Yardley, PA that was originated in 2019. We assumed legal title to the property through a deed in lieu of foreclosure in June 2023.

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Tabular disclosure of financing receivables by credit quality indicator. The credit quality indicator is a statistic about the credit quality of financing receivables. Examples include, but not limited to, consumer credit risk scores, credit-rating-agency ratings, an entity's internal credit risk grades, loan-to-value ratios, collateral, collection experience and other internal metrics.

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Tabular disclosure of the various types of trade accounts and notes receivable and for each the gross carrying value, allowance, and net carrying value as of the balance sheet date. Presentation is categorized by current, noncurrent and unclassified receivables.

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