Variable Interest Entities

6 Months Ended

Jun. 30, 2025

VARIABLE INTEREST ENTITIES

We have financed a portion of our loans through the CLOs, all of which are VIEs. We are the primary beneficiary of, and

therefore consolidate, the CLOs on our balance sheet as we (i) control the relevant interests of the CLOs that give us power

to direct the activities that most significantly affect the CLOs, and (ii) have the right to receive benefits and obligation to

absorb losses of the CLOs through the subordinate interests we own.

During 2024, we modified two loans that included, among other changes, an equity interest in and/or control over decision-

making at the property. As a result of the modification, our investments in these loans are VIEs. As of June 30, 2025, we

are the primary beneficiary of, and therefore consolidated the assets of these VIEs on our balance sheet as we (i) have the

power to direct the activities that most significantly affect the property, and (ii) have the right to receive excess sale

proceeds upon exit.

The following table details the assets and liabilities of our consolidated VIEs ($ in thousands):


	June 30, 2025	December 31, 2024
Assets
Cash and cash equivalents	$16,188	$9,145
Loans receivable	3,095,480	2,338,201
Current expected credit loss reserve	(154,384)	(202,400)
Loans receivable, net	2,941,096	2,135,801
Real estate owned, net	212,658	177,322
Other assets	127,188	126,518
Total assets	$3,297,130	$2,448,786
Liabilities
Securitized debt obligations, net	$2,493,011	$1,936,956
Other liabilities	15,032	13,277
Total liabilities	$2,508,043	$1,950,233

Assets held by these VIEs are restricted and can be used only to settle obligations of the VIEs, including the subordinate

interests owned by us. The liabilities of these VIEs are non-recourse to us and can only be satisfied from the assets of the

VIEs. The consolidation of these VIEs results in an increase in our gross assets, liabilities, revenues and expenses, however

it does not affect our stockholders’ equity or net income. We are not obligated to provide, have not provided, and do not

intend to provide material financial support to these consolidated VIEs.