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Debt and Preferred Equity Investments (Tables)
 9 Months Ended
Sep. 30, 2025
Investments, Debt and Equity Securities [Abstract]  
Schedule of Activity in Debt and Preferred Equity Investments
Below is a summary of the activity in our consolidated debt and preferred equity investments for the nine months ended September 30, 2025 and the twelve months ended December 31, 2024 (in thousands):
September 30, 2025December 31, 2024
Balance at beginning of year (1)
$303,726 $346,745 
Debt investment originations/fundings/accretion (2)
13,921 12,890 
Preferred equity investment originations/accretion (2) (3)
2,233 8,720 
Redemptions/sales/syndications/equity ownership/amortization(148,168)(64,629)
Net change in loan loss reserves(300)— 
Balance at end of period (1) (4)
$171,412 $303,726 
(1)Net of unamortized fees, discounts, and premiums.
(2)Accretion includes amortization of fees and discounts and paid-in-kind investment income.
(3)Excludes a $118.3 million preferred equity investment that is included in "Investment in unconsolidated joint ventures" in our consolidated balance sheet. See Note 6, "Investments in Unconsolidated Joint Ventures". Also excludes a preferred equity investment in an entity in which the Company is the primary beneficiary, and the underlying property is consolidated in our financial statements. See Note 3, "Property Acquisitions and Consolidations".
(4)Includes one investment with a total carrying value of $53.5 million that is included in the Company's alternative strategy portfolio.
Schedule of Debt and Preferred Equity Investments
Below is a summary of our consolidated debt and preferred equity investments as of September 30, 2025 (dollars in thousands):
Floating RateFixed RateTotal Carrying ValueSenior Financing
Maturity (2)
Type (4)
Carrying ValueFace Value
Interest Rate (1)
Carrying ValueFace ValueInterest Rate
Mezzanine Debt$130,926 $131,290 
S + 5.06% - 11.63%
$40,486 $40,786 
0.00% - 11.63%
$171,412 (3)$713,528 2025 - 2029
Balance at end of period$130,926 $131,290 $40,486 $40,786 $171,412 $713,528 
(1)Floating interest rates are presented with the stated spread over Term SOFR ("S").
(2)Excludes available extension options to the extent they have not been exercised as of the date of this filing.
(3)Includes one investment with a total carrying value of $53.5 million that is included in the Company's alternative strategy portfolio.
(4)Excludes a $118.3 million preferred equity investment that is included in "Investment in unconsolidated joint ventures" in our consolidated balance
sheet. See Note 6, "Investments in Unconsolidated Joint Ventures." Also excludes a preferred equity investment in an entity in which the Company is the primary beneficiary, and the underlying property is consolidated in our financial statements. See Note 3, "Property Acquisitions and Consolidations".
Schedule of Roll Forward of our Total Allowance for Loan Losses
The following table is a roll forward of our total allowance for loan losses for the nine months ended September 30, 2025 and the twelve months ended December 31, 2024 (in thousands):
September 30, 2025December 31, 2024
Balance at beginning of year$13,520 $13,520 
Current period provision for loan loss300 — 
Initial allowance for credit losses on loans purchased with credit deterioration ("PCD") (1)
99,039 — 
Writeoffs (1)(2)
(40,779)— 
Current period recoveries (1)
(71,626)— 
Balance at end of period (3)
$454 $13,520 
(1)During the first quarter of 2025, we completed a series of transactions to acquire 100% of a commercial mortgage investment that was in maturity default. These transactions were consummated at various discounts. Once the commercial mortgage investment was wholly-owned, an initial allowance of $99.0 million was established. Subsequent to the final transaction, we entered into a modification with the borrower to reduce the loan principal by $24.0 million with the remaining principal to be repaid by a specified date. As a result of the modification and the collection of $10.0 million, we recognized a $25.0 million reversal of the established allowance during the three months ended March 31, 2025. In May 2025, the commercial mortgage investment was repaid, which resulted in an additional $46.6 million reversal of the established allowance during the three months ended June 30, 2025.
(2)The Company held a debt investment which was on non-accrual status and fully reserved. During the nine months ended September 30, 2025, the Company wrote off the balance of $13.4 million.
(3)As of September 30, 2025, all financing receivables on non-accrual had an allowance for loan loss except for one debt investment with a carrying value of $53.5 million, which is included in the Company's alternative strategy portfolio.
Schedule of Carrying Value of Debt and Preferred Equity Investment Portfolio by Year of Origination and Risk Rating
The following table sets forth the carrying value of our consolidated debt and preferred equity investment portfolio by risk rating as of September 30, 2025 and December 31, 2024 (dollars in thousands):
Risk RatingSeptember 30, 2025December 31, 2024
1 - Low Risk Assets - Low probability of loss
$20,000 $156,720 
2 - Watch List Assets - Higher potential for loss (1)
151,412 147,006 
3 - High Risk Assets - Loss more likely than not— — 
$171,412 $303,726 
(1)Includes one investment with a total carrying value of $53.5 million that is included in the Company's alternative strategy portfolio.
The following table sets forth the carrying value of our consolidated debt and preferred equity investment portfolio by year of origination and risk rating as of September 30, 2025 (dollars in thousands):
As of September 30, 2025
Risk Rating
2024 (1)
2023 (1)
2022 (1)
Prior (1)
Total
1 - Low Risk Assets - Low probability of loss
$— $— $— $20,000 $20,000 
2 - Watch List Assets - Higher potential for loss
— — — 151,412 (2)151,412 
3 - High Risk Assets - Loss more likely than not
— — — — — 
$— $— $— $171,412 $171,412 
(1)Year in which the investment was originated or acquired by us or in which a material modification occurred.
(2)Includes one investment with a total carrying value of $53.5 million that is included in the Company's alternative strategy portfolio.
Schedule of Debt Investments with an Aggregate Weighted Average Current Yield As of September 30, 2025 and December 31, 2024, we held the following consolidated debt investments with an aggregate weighted average current yield of 5.13% as of September 30, 2025 (dollars in thousands):
Loan Type
September 30, 2025
Future Funding
Obligations
September 30, 2025 Senior
Financing
September 30, 2025
Carrying Value (1)
December 31, 2024
Carrying Value (1)
Maturity
Date (2)
Fixed Rate Investments:
Mezzanine Loan (3)
$— $— $— $13,366 
Mezzanine Loan— 95,000 20,786 30,000 July 2027
Mezzanine Loan— 85,000 20,000 20,000 December 2029
Total fixed rate$— $180,000 $40,786 $63,366  
Floating Rate Investments:
Mezzanine Loan (4)
$— $54,000 $9,268 $8,991 August 2025
Mezzanine Loan (5) (6)
— 283,000 53,687 53,687 December 2025
Mezzanine Loan2,999 196,528 68,125 54,482 January 2026
Total floating rate$2,999 $533,528 $131,080 $117,160  
Allowance for loan loss N/AN/A$(454)$(13,520)
Total$2,999 $713,528 $171,412 $167,006 
(1)Carrying value is net of discounts, premiums, original issue discounts and deferred origination fees.
(2)Represents contractual maturity, excluding any extension options to the extent they have not been exercised as of the date of this filing.
(3)This loan went into default and was put on non-accrual in June 2020. In the first quarter of 2023, the Company fully reserved the balance of the investment. As of September 30, 2025, the loan was written off.
(4)This loan was put on non-accrual in January 2025 and went into default in August 2025. It remains on non-accrual as of September 30, 2025. No investment income has been recognized subsequent to it being put on non-accrual.
(5)Included in the Company's alternative strategy portfolio.
(6)This loan went into default and was put on non-accrual in January 2023 and remains on non-accrual as of September 30, 2025. No investment income has been recognized subsequent to it being put on non-accrual. In December 2024, the maturity date of the loan was extended to December 2025. The Company is in discussions with the borrower with respect to the loan.