XML 24 R11.htm IDEA: XBRL DOCUMENT
v3.25.3

CURRENT EXPECTED CREDIT LOSSES | 9 Months Ended
--- | ---
Sep. 30, 2025
Credit Loss [Abstract] |
CURRENT EXPECTED CREDIT LOSSES | CURRENT EXPECTED CREDIT LOSSES As of September 30, 2025 and December 31, 2024, the Company’s CECL Reserve for its loans held at carrying value was approximately $0.4 million and $40.2 thousand, respectively, or 0.17% and 0.03%, respectively, of the Company’s total loans held at carrying value of approximately $250.4 million and $130.7 million, respectively, and is bifurcated between the current expected credit loss reserve (contra-asset) related to outstanding balances on loans held at carrying value of approximately $0.1 million and $21.8 thousand, respectively, and a liability for unfunded commitments of approximately $0.3 million and $18.4 thousand, respectively. The liability was based on the unfunded portion of the loan commitment over the full contractual period over which the Company is exposed to credit risk through a current obligation to extend credit. Management considered the likelihood that funding will occur and, if funded, the expected credit loss on the funded portion when determining the amount to allocate to its CECL Reserve. Activity related to the CECL Reserve for outstanding balances and unfunded commitments on the Company’s loans held at carrying value as of and for the three and nine months ended September 30, 2025 was as follows:
| Outstanding(1) |  | Unfunded(2) |  | Total
Balance at June 30, 2025 | $ | 383,860 |  |  | $ | 242,461 |  |  | $ | 626,321 |
(Reversal of) provision for current expected credit losses | (243,337) |  |  | 49,472 |  |  | (193,865) |
Write-offs | — |  |  | — |  |  | — |
Recoveries | — |  |  | — |  |  | — |
Balance at September 30, 2025 | $ | 140,523 |  |  | $ | 291,933 |  |  | $ | 432,456 |
| Outstanding(1) |  | Unfunded(2) |  | Total
Balance at December 31, 2024 | $ | 21,782 |  |  | $ | 18,398 |  |  | $ | 40,180 |
Provision for (reversal of) current expected credit losses | 118,741 |  |  | 273,535 |  |  | 392,276 |
Write-offs | — |  |  | — |  |  | — |
Recoveries | — |  |  | — |  |  | — |
Balance at September 30, 2025 | $ | 140,523 |  |  | $ | 291,933 |  |  | $ | 432,456 |
(1)As of September 30, 2025 and December 31, 2024, the CECL Reserve related to outstanding balances on loans held at carrying value is recorded within current expected credit loss reserve in the Company’s consolidated balance sheets. (2)As of September 30, 2025 and December 31, 2024, the CECL Reserve related to unfunded commitments on loans held at carrying value is recorded within current expected credit loss reserve as a liability in the Company’s consolidated balance sheets. The Company continuously evaluates the credit quality of each loan by assessing the risk factors of each loan and assigning a risk rating based on a variety of factors. Such factors may include property type, geographic and local market dynamics, physical condition, projected cash flow, loan structure and exit plan, loan-to-value ratio, fixed charge coverage ratio, project sponsorship, and other factors deemed necessary by the Company. Based on a 5-point scale, the Company’s loans are rated “1” through “5,” from less risk to greater risk, which ratings are defined as follows:
Rating | Definition
1 | Very Low Risk — Investment exceeds performance expectations. Trends and risk factors since time of investment are favorable.
2 | Low Risk — Investment performing consistent with expectations and a full return of principal and interest expected. Trends and risk factors are neutral to favorable.
3 | Medium Risk — Performing investments requiring closer monitoring. Trends and risk factors show some deterioration.
4 | High Risk/ Potential for Loss — Investment underperforming with the potential of some interest loss. Trends and risk factors are negative.
5 | Impaired/ Loss Likely — Investment underperforming with expected loss of interest, and full recovery of principal is unlikely.
The risk ratings are primarily based on historical data as well as taking into account future economic conditions. As of September 30, 2025, the carrying value, excluding the CECL Reserve, of the Company’s loans held at carrying value within each risk rating by year of origination is as follows:
Risk Rating: | 2025 |  | 2024 |  | Total
1 | $ | — |  |  | $ | — |  |  | $ | — |
2 | 101,031,667 |  |  | 122,720,072 |  |  | 223,751,739 |
3 | — |  |  | 26,626,988 |  |  | 26,626,988 |
4 | — |  |  | — |  |  | — |
5 | — |  |  | — |  |  | — |
Total | $ | 101,031,667 |  |  | $ | 149,347,060 |  |  | $ | 250,378,727 |

X
- References No definition available. + Details
Name: | us-gaap_CreditLossAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for credit loss on financial instrument measured at amortized cost basis, net investment in lease, off-balance sheet credit exposure, and available-for-sale debt security. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481962/310-10-50-42 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 44 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481962/310-10-50-44 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 326 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479319/326-20-50-5 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 326 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479319/326-20-50-21 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 326 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479106/326-30-50-4 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 326 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 11 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479319/326-20-50-11 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 326 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 7 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479106/326-30-50-7 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 326 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 8 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479319/326-20-50-8 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 326 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 20 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479319/326-20-50-20 + Details
Name: | us-gaap_CreditLossFinancialInstrumentTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration