Real Estate Owned, Net

3 Months Ended

Mar. 31, 2025

REAL ESTATE OWNED, NET

As of March 31, 2025 and December 31, 2024, we had eight and seven REO assets, respectively. During the three months

ended March 31, 2025, we acquired one REO asset through a deed-in-lieu of foreclosure transaction, with an acquisition

price of $45.0 million. We allocated $19.7 million to building and building improvements, $15.0 million to land and land

improvements, $14.5 million to acquired intangible assets, and $(4.2) million to other components of the purchase price.

We charged off $41.8 million of CECL reserves relating to this loan, as the loan’s carrying value of $86.9 million at the

time of acquisition exceeded the acquisition date fair value noted above. See Note 2 for additional discussion of REO.

The acquisition of one REO asset during the three months ended March 31, 2025 was accounted for as an asset acquisition

under ASC Topic 805 “Business Combinations,” and we recognized this property as an REO asset held for investment. The

following table presents the REO assets that were acquired during the three months ended March 31, 2025 ($ in

thousands):

The following table presents the REO assets and liabilities included in our consolidated balance sheets ($ in thousands):


	March 31, 2025	December 31, 2024
Assets
Building and building improvements	$429,249	$410,546
Land and land improvements	200,916	181,083
Total	$630,165	$591,629
Less: accumulated depreciation	(10,369)	(3,444)
Real estate owned, net	$619,796	$588,185

Intangible real estate assets	$95,569	$83,253
Less: accumulated amortization	(14,188)	(5,964)
Intangible real estate assets, net(1)	$81,381	$77,289

Liabilities
Intangible real estate liabilities	$1,479	$1,422
Less: accumulated amortization	(104)	(1)
Intangible real estate liabilities, net(2)	$1,375	$1,421

(1)Included within other assets on our consolidated balance sheets. Refer to Note 6 for additional information.

(2)Included within other liabilities on our consolidated balance sheets. Refer to Note 6 for additional information.

Revenue from real estate owned consisted of the following ($ in thousands):


	Three Months Ended March 31,
	2025
Rental income	$14,334
Other operating income	22,699
Revenue from real estate owned	$37,033

We recognized expenses from real estate owned of $46.3 million during the three months ended March 31, 2025. These

expenses consisted of $30.1 million of operating expense and $16.2 million of depreciation and amortization expense.

These expenses are included in expenses from real estate owned in our consolidated statements of operations.

There was no income or expense recognized related to REO assets during the three months ended March 31, 2024.

The following table presents the undiscounted future minimum rents we expect to receive for our office properties as of

March 31, 2025. Leases at our multifamily assets are short term, generally 12 months or less, and are therefore not included

($ in thousands):

The following table presents the amortization of lease intangibles for each of the succeeding fiscal years ($ in thousands):


	In-place lease intangibles	Above-market lease intangibles	Below-market lease intangibles
2025 (remaining)	$23,316	$4,097	$(285)
2026	17,205	3,453	(282)
2027	8,977	2,445	(254)
2028	5,791	1,933	(174)
2029	4,384	1,306	(138)
Thereafter	6,219	2,255	(242)
Total	$65,892	$15,489	$(1,375)