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Debt and Preferred Equity Investments (Tables)
 12 Months Ended
Dec. 31, 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 years ended December 31, 2025 and 2024 (in thousands):
December 31, 2025December 31, 2024
Balance at beginning of year (1)
$303,726 $346,745 
Debt investment originations/fundings/accretion (2)
14,118 12,890 
Preferred equity investment originations/accretion (2)
2,233 8,720 
Redemptions/sales/syndications/equity ownership/amortization(151,419)(64,629)
Net change in loan loss reserves(300)— 
Balance at end of period (1)(3)(4)
$168,358 $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 $122.4 million preferred equity investment that is included in "Investment in unconsolidated joint ventures" on our consolidated balance sheet which the Company sold to the Fund in October 2025. The sale did not meet sale accounting under ASC Topic 860, Transfers and Servicing ("ASC 860") and, as a result, the investment is still presented within "Investments in unconsolidated joint ventures" on 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 $50.3 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 investments as of December 31, 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$127,872 $128,040 
S + 0.00% - 11.63%
$40,486 $40,786 
0.00% - 8.00%
$168,358 (3)$713,528 2025 - 2029
Balance at end of period$127,872 $128,040 $40,486 $40,786 $168,358 $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 $50.3 million that is included in the Company's alternative strategy portfolio.
(4)Excludes a $122.4 million preferred equity investment that is included in "Investment in unconsolidated joint ventures" on our consolidated balance sheet which the Company sold to the Fund. The sale did not meet sale accounting under ASC 860 and, as a result, the investment in the joint venture is still presented within "Investments in unconsolidated joint ventures" on 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 years ended December 31, 2025, 2024, and 2023 (in thousands):
Year Ended December 31,
202520242023
Balance at beginning of year$13,520 $13,520 $6,630 
Current period provision for loan loss300 — 6,890 
Initial allowance for credit losses for loans purchased with credit deterioration ("PCD") (1)
99,039 — — 
Writeoffs of the allowance (1)(2)
(40,779)— — 
Current period recoveries (1)
(71,626)— — 
Balance at end of year(3)
$454 $13,520 $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. When the transactions were completed, 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 twelve months ended December 31, 2025, the Company wrote off the balance of $13.4 million.
(3)As of December 31, 2025, all financing receivables on non-accrual had an allowance for loan loss except for one debt investment with a carrying value of $50.3 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 December 31, 2025 and 2024 (dollars in thousands):
Risk RatingDecember 31, 2025December 31, 2024
1 - Low Risk Assets - Low probability of loss
$20,000 $156,720 
2 - Watch List Assets - Higher potential for loss (1)
148,358 147,006 
3 - High Risk Assets - Loss more likely than not
— — 
$168,358 $303,726 
(1)Includes one investment with a total carrying value of $50.3 million that is included in the Company's alternative strategy portfolio.
The following tables set forth the carrying value of our consolidated debt and preferred equity investment portfolio by year of origination and risk rating as of December 31, 2025 and December 31, 2024 (dollars in thousands):
December 31, 2025
Risk Rating
2025(1)
2024(1)
2023(1)
2022(1)
2021(1)
Prior(1)
Total
1 - Low Risk Assets - Low probability of loss
$— $— $— $— $— $20,000 $20,000 
2 - Watch List Assets - Higher potential for loss
— — — — — 148,358 (2)148,358 
3 - High Risk Assets - Loss more likely than not
— — — — — — — 
$— $— $— $— $— $168,358 $168,358 
December 31, 2024
Risk Rating
2024(1)
2023(1)
2022(1)
2021(1)
2020(1)
Prior(1)
Total
1 - Low Risk Assets - Low probability of loss
$— $— $— $— $136,720 $20,000 $156,720 
2 - Watch List Assets - Higher potential for loss
— — — — 8,991 138,015 (2)147,006 
3 - High Risk Assets - Loss more likely than not
— — — — — — — 
$— $— $— $— $145,711 $158,015 $303,726 
(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 $50.3 million and $53.5 million as of December 31, 2025 and 2024, respectively, that is included in the Company's alternative strategy portfolio.
Schedule of Debt Investments with an Aggregate Weighted Average Current Yield
As of December 31, 2025 and 2024, we held the following consolidated debt investments with an aggregate weighted average current yield of 5.02% as of December 31, 2025 (dollars in thousands):
December 31, 2025December 31, 2024
Loan TypeFuture Funding ObligationsSenior Financing
Carrying Value (1)
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 50,437 53,687 January 2026
Mezzanine Loan2,999 196,528 68,321 54,482 January 2026
Total floating rate$2,999 $533,528 $128,026 $117,160  
Allowance for loan loss$— $— $(454)$(13,520)
Total$2,999 $713,528 $168,358 $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 December 31, 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 December 31, 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 December 31, 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. In December 2025, a restructuring agreement was executed, and a $3.25 million partial loan repayment was received, followed by an additional $2.50 million partial loan repayment received in January 2026 which extended the loan to March 2026.