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Loans
 3 Months Ended
Mar. 31, 2025
Receivables [Abstract]  
Loans Loans
Our loans held-for-investment are accounted for at amortized cost and our loans held-for-sale are accounted for at the lower of cost or fair value, unless we have elected the fair value option for either. The following tables summarize our investments in mortgages and loans as of March 31, 2025 and December 31, 2024 (dollars in thousands):
March 31, 2025Carrying
Value		Face
Amount		Weighted
Average
Coupon (1)		Weighted
Average Life
(“WAL”)
(years)(2)
Loans held-for-investment:
Commercial loans:
First mortgages (3)$13,910,956 $13,946,397 7.8 %2.5
Subordinated mortgages (4)31,751 31,455 14.1 %1.2
Mezzanine loans (3)239,597 240,555 10.1 %2.2
Other46,418 46,688 13.2 %3.5
Total commercial loans14,228,722 14,265,095 
Infrastructure first priority loans
2,721,324 2,765,514 8.3 %4.7
Total loans held-for-investment16,950,046 17,030,609 
Loans held-for-sale:
Residential, fair value option 2,375,642 2,632,763 4.5 %N/A(5)
Commercial, fair value option
70,994 73,975 6.4 %4.9
Total loans held-for-sale2,446,636 2,706,738 
Total gross loans19,396,682 $19,737,347 
Credit loss allowances:
Commercial loans held-for-investment(415,675)
Infrastructure loans held-for-investment(12,392)
Total allowances(428,067)
Total net loans$18,968,615 
December 31, 2024
Loans held-for-investment:
Commercial loans:
First mortgages (3)$12,931,333 $12,955,038 7.9 %2.4
Subordinated mortgages (4)31,247 31,000 14.3 %1.4
Mezzanine loans (3)323,041 324,021 11.1 %1.7
Other46,255 46,688 13.2 %3.8
Total commercial loans13,331,876 13,356,747 
Infrastructure first priority loans2,553,432 2,594,267 8.3 %4.4
Total loans held-for-investment15,885,308 15,951,014 
Loans held-for-sale:
Residential, fair value option 2,394,624 2,694,959 4.5 %N/A(5)
Commercial, fair value option121,384 125,695 7.0 %7.3
Total loans held-for-sale2,516,008 2,820,654 
Total gross loans18,401,316 $18,771,668 
Credit loss allowances:
Commercial loans held-for-investment(436,812)
Infrastructure loans held-for-investment(11,483)
Total allowances(448,295)
Total net loans$17,953,021 
______________________________________________________________________________________________________________________
(1)Calculated using applicable index rates as of March 31, 2025 and December 31, 2024 for variable rate loans and excludes loans for which interest income is not recognized.
(2)Represents the WAL of each respective group of loans, excluding loans for which interest income is not recognized, as of the respective balance sheet date. For commercial loans held-for-investment, the WAL is calculated assuming all extension options are exercised by the borrower, although our loans may be repaid prior to such date. For infrastructure loans, the WAL is calculated using the amounts and timing of future principal payments, as projected at origination or acquisition of each loan.
(3)First mortgages include first mortgage loans and any contiguous mezzanine loan components because as a whole, the expected credit quality of these loans is more similar to that of a first mortgage loan. The application of this methodology resulted in mezzanine loans with carrying values of $1.1 billion and $0.9 billion, respectively, being classified as first mortgages as of March 31, 2025 and December 31, 2024.
(4)Subordinated mortgages include B-Notes and junior participation in first mortgages where we do not own the senior A-Note or senior participation. If we own both the A-Note and B-Note, we categorize the loan as a first mortgage loan.
(5)Residential loans have a weighted average remaining contractual life of 26.6 years and 26.8 years as of March 31, 2025 and December 31, 2024, respectively.
As of March 31, 2025, our variable rate loans held-for-investment, excluding loans for which interest income is not recognized, were as follows (dollars in thousands):
March 31, 2025Carrying
Value		Weighted-average
Spread Above Index
Commercial loans$13,063,501 3.6 %
Infrastructure loans2,721,324 3.8 %
Total variable rate loans held-for-investment$15,784,825 3.6 %

Credit Loss Allowances
As discussed in Note 2, we do not have a history of realized credit losses on our HFI loans and HTM securities, so we have subscribed to third party database services to provide us with industry losses for both commercial real estate and infrastructure loans. Using these losses as a benchmark, we determine expected credit losses for our loans and securities on a collective basis within our commercial real estate and infrastructure portfolios.
For our commercial loans, we utilize a loan loss model that is widely used among banks and commercial mortgage REITs and is marketed by a leading CMBS data analytics provider. It employs logistic regression to forecast expected losses at the loan level based on a commercial real estate loan securitization database that contains activity dating back to 1998. We provide specific loan-level inputs which include loan-to-stabilized-value (“LTV”) and debt service coverage ratio (DSCR) metrics, as well as principal balances, property type, location, coupon, origination year, term, subordination, expected repayment dates and future fundings. We also select from a group of independent five-year macroeconomic forecasts included in the model that are updated regularly based on current economic trends. We categorize the results by LTV range, which we consider the most significant indicator of credit quality for our commercial loans, as set forth in the credit quality indicator table below. A lower LTV ratio typically indicates a lower credit loss risk.
The macroeconomic forecasts do not differentiate among property types or asset classes. Instead, these forecasts reference general macroeconomic conditions (i.e. Gross Domestic Product, employment and interest rates) which apply broadly across all assets. For instance, although the office sector has been adversely affected by the increase in remote working arrangements, the retail sector has been adversely affected by electronic commerce and the multifamily sector has been strained by sustained higher interest rates, the broad macroeconomic forecasts do not account for such differentiation. Accordingly, we have selected more adverse macroeconomic recovery forecasts for these property types than others in determining our credit loss allowance. We have also applied a more recessionary near term outlook to these forecasts given management’s view that the nation’s trade and immigration policies will not be as lenient as these current macroeconomic forecasts assume.
For our infrastructure loans, we utilize a database of historical infrastructure loan performance that is shared among a consortium of banks and other lenders and compiled by a major bond credit rating agency. The database is representative of industry-wide project finance activity dating back to 1983. We derive historical loss rates from the database filtered by industry, sub-industry, term and construction status for each of our infrastructure loans. Those historical loss rates reflect global economic cycles over a long period of time as well as average recovery rates. We categorize the results principally between the power and oil and gas industries, which we consider the most significant indicator of credit quality for our infrastructure loans, as set forth in the credit quality indicator table below.
As discussed in Note 2, we use a discounted cash flow or collateral value approach, rather than the collective pool approach described above, to determine credit loss allowances for any credit deteriorated loans.
The significant credit quality indicators for our loans measured at amortized cost, which excludes loans held-for-sale, were as follows as of March 31, 2025 (dollars in thousands):
Term Loans
Amortized Cost Basis by Origination Year		Revolving Loans
Amortized Cost
Total		Total
Amortized
Cost Basis		Credit
Loss
Allowance
As of March 31, 202520252024202320222021Prior
Commercial loans:
Credit quality indicator:
LTV < 60%$481,260 $298,146 $418,786 $2,010,833 $1,929,993 $648,161 $— $5,787,179 $15,329 
LTV 60% - 70%294,009 259,716 458,912 1,170,652 2,565,067 384,394 — 5,132,750 105,844 
LTV > 70%112,813 353,935 65,374 263,263 1,131,316 1,330,749 — 3,257,450 289,577 
Credit deteriorated— — — — — 4,925 — 4,925 4,925 
Defeased and other— — 4,550 41,868 — — — 46,418 — 
Total commercial$888,082 $911,797 $947,622 $3,486,616 $5,626,376 $2,368,229 $— $14,228,722 $415,675 
Infrastructure loans:
Credit quality indicator:
Power$263,660 $609,908 $292,682 $— $28,651 $276,553 $1,101 $1,472,555 $5,094 
Oil and gas265,921 332,808 412,552 57,586 91,747 88,155 — 1,248,769 7,298 
Total infrastructure$529,581 $942,716 $705,234 $57,586 $120,398 $364,708 $1,101 $2,721,324 $12,392 
Loans held-for-sale2,446,636 — 
Total gross loans$19,396,682 $428,067 


Non-Credit Deteriorated Loans
As of March 31, 2025, we had four commercial loans with a combined amortized cost basis of $515.7 million along with $81.7 million of residential loans that were 90 days or greater past due. All of these loans were on nonaccrual as of March 31, 2025. We also had four commercial loans with a combined amortized cost basis of $436.7 million on nonaccrual that were not 90 days or greater past due as of March 31, 2025. None of these loans were considered credit deteriorated. As of December 31, 2024, we had a total of $1.0 billion of non-credit deteriorated loans on nonaccrual. During the quarter, we had an additional $71.5 million commercial loan placed on nonaccrual and two commercial loans for a total of $81.7 million were resolved, one through foreclosure (see related discussion below) and one through repayment in excess of our carrying value.
Credit Deteriorated Loans
As of March 31, 2025, we had a $4.9 million commercial subordinated loan secured by a department store in Chicago which was deemed credit deteriorated and was fully reserved in prior years. The loan was on nonaccrual under the cost recovery method as of March 31, 2025 and December 31, 2024.
Foreclosures
In February 2025, we foreclosed on a first mortgage and mezzanine loan on a multifamily property in Conyers, Georgia. The net carrying value of our loan related to this property (including previously accrued interest) totaled $45.0 million. In connection with the foreclosure, we recorded properties of $45.0 million in accordance with the asset acquisition provisions of ASC 805. As noted above, this loan was previously placed on nonaccrual.
Loan Modifications
We may amend or modify a loan based on its specific facts and circumstances. The modified terms and subsequent performance of the modified loans are considered in the determination of our general CECL reserve. During the three months ended March 31, 2025, we made no modifications to commercial loans disclosable under ASU 2022-02, Troubled Debt Restructurings and Vintage Disclosures.
Performance of Previously Modified Loans:
Loans with modifications disclosed in the previous twelve months under ASU 2022-02 are performing in accordance with their modified terms through March 31, 2025, except for a $126.5 million first mortgage and mezzanine loan on an office condominium in Brooklyn, New York. The loan is in maturity default and is currently in the process of being further modified to accommodate a newly executed lease.

Credit Loss Allowance Activity
The following tables present the activity in our credit loss allowance for funded loans and unfunded commitments (amounts in thousands):
Funded Commitments Credit Loss Allowance
Loans Held-for-InvestmentTotal
Funded Loans
Three Months Ended March 31, 2025
CommercialInfrastructure
Credit loss allowance at December 31, 2024$436,812 $11,483 $448,295 
Credit loss (reversal) provision, net
(21,137)909 (20,228)
Credit loss allowance at March 31, 2025$415,675 $12,392 $428,067 

Unfunded Commitments Credit Loss Allowance (1)
Loans Held-for-InvestmentHTM Preferred
Three Months Ended March 31, 2025
CommercialInfrastructureInterests (2)CMBS (2)Total
Credit loss allowance at December 31, 2024$16,530 $950 $14,018 $21 $31,519 
Credit loss reversal
(441)(148)(3,188)(21)(3,798)
Credit loss allowance at March 31, 2025$16,089 $802 $10,830 $— $27,721 
Memo: Unfunded commitments as of March 31, 2025 (3)
$1,309,900 $87,388 $57,011 $— $1,454,299 
______________________________________________________________________________________________________________________
(1)Included in accounts payable, accrued expenses and other liabilities in our consolidated balance sheets.
(2)See Note 5 for further details.
(3)Represents amounts expected to be funded (see Note 22).
Loan Portfolio Activity
The activity in our loan portfolio was as follows (amounts in thousands):
Held-for-Investment Loans
Three Months Ended March 31, 2025
CommercialInfrastructureHeld-for-Sale LoansTotal Loans
Balance at December 31, 2024$12,895,064 $2,541,949 $2,516,008 $17,953,021 
Acquisitions/originations/additional funding1,108,511 595,059 231,109 1,934,679 
Capitalized interest (1)22,343 — — 22,343 
Basis of loans sold (2)— — (297,319)(297,319)
Loan maturities/principal repayments(312,601)(435,553)(54,628)(802,782)
Discount accretion/premium amortization7,241 6,723 — 13,964 
Changes in fair value— — 58,404 58,404 
Foreign currency translation gain, net
115,323 1,663 — 116,986 
Credit loss reversal (provision), net
21,137 (909)— 20,228 
Loan foreclosures
(43,971)— (6,938)(50,909)(3)
Balance at March 31, 2025$13,813,047 $2,708,932 $2,446,636 $18,968,615 
Held-for-Investment Loans
Three Months Ended March 31, 2024
CommercialInfrastructureHeld-for-Sale LoansTotal Loans
Balance at December 31, 2023$15,078,589 $2,495,660 $2,645,637 $20,219,886 
Acquisitions/originations/additional funding131,886 133,299 289,508 554,693 
Capitalized interest (1)20,418 — — 20,418 
Basis of loans sold (2)— — (218,597)(218,597)
Loan maturities/principal repayments(892,855)(209,131)(45,316)(1,147,302)
Discount accretion/premium amortization15,090 4,801 — 19,891 
Changes in fair value— — (29,013)(29,013)
Foreign currency translation loss, net
(99,145)(448)— (99,593)
Credit loss (provision) reversal, net
(23,312)705 (1,546)(24,153)
Transfer to/from other asset classifications or between segments— (48,695)48,695 — 
Balance at March 31, 2024$14,230,671 $2,376,191 $2,689,368 $19,296,230 
______________________________________________________________________________________________________________________
(1)Represents accrued interest income on loans whose terms do not require current payment of interest.
(2)See Note 12 for additional disclosure on these transactions.
(3)Represents (i) the $44.0 million carrying value of a first mortgage and mezzanine loan on a multifamily property in Conyers, Georgia foreclosed in February 2025 and (ii) $6.9 million of residential mortgage loans foreclosed.