Real Estate Owned, Net

6 Months Ended

Jun. 30, 2025

REAL ESTATE OWNED, NET

As of June 30, 2025 and December 31, 2024, we had eight and seven REO assets, respectively. During the six months

ended June 30, 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 the loan that had previously been secured by this asset, as the

loan’s carrying value of $86.9 million at the time of REO 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 six months ended June 30, 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 asset that was acquired during the six months ended June 30, 2025 ($ in thousands):

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


	June 30, 2025	December 31, 2024
Assets
Building and building improvements	$431,825	$410,546
Land and land improvements	200,931	181,083
Total	$632,756	$591,629
Less: accumulated depreciation	(17,539)	(3,444)
Real estate owned, net	$615,217	$588,185

Intangible real estate assets	$95,568	$83,253
Less: accumulated amortization	(24,444)	(5,964)
Intangible real estate assets, net(1)	$71,124	$77,289

Liabilities
Intangible real estate liabilities	$1,479	$1,422
Less: accumulated amortization	(233)	(1)
Intangible real estate liabilities, net(2)	$1,246	$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 and expenses from real estate owned consisted of the following ($ in thousands):


	Three Months Ended June 30,		Six Months Ended June 30,
	2025	2024	2025	2024
Rental income	$16,207	$—	$30,541	$—
Other operating income	22,605	—	45,304	—
Revenue from real estate owned	$38,812	$—	$75,845	$—

Operating expense	$31,089	$778	$61,177	$778
Depreciation and amortization expense	16,707	185	32,921	185
Total expenses from real estate owned	$47,796	$963	$94,098	$963

Net loss from real estate owned	$(8,984)	$(963)	$(18,253)	$(963)

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

June 30, 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)	$14,621	$2,666	$(159)
2026	17,156	3,447	(281)
2027	8,969	2,445	(253)
2028	5,788	1,933	(114)
2029	4,343	1,304	(138)
Thereafter	6,202	2,250	(301)
Total	$57,079	$14,045	$(1,246)