
								Weighted Average
Loan Type	Unpaid Principal Balance		Carrying Value(1)		Loan Count	Floating Rate Loan %		Coupon(2)		Term (Years)(3)
December 31, 2024
Loans held-for-investment
Senior secured loans(4)	$	1,065,563,646	$	1,060,123,298	65	100.0	%	8.1	%	2.1
Allowance for credit losses	N/A		$	(11,320,220)
	$	1,065,563,646	$	1,048,803,078	65	100.0	%	8.1	%	2.1


								Weighted Average
Loan Type	Unpaid Principal Balance		Carrying Value		Loan Count	Floating Rate Loan %		Coupon(1)		Term (Years)(2)
December 31, 2023
Loans held-for-investment
Senior secured loans(4)	$	1,397,385,160	$	1,389,940,203	88	100.0	%	8.9	%	2.9
	N/A		$	(6,059,006)
	$	1,397,385,160	$	1,383,881,197	88	100.0	%	8.9	%	2.9

(2) Weighted average coupon assumes applicable 30-day term SOFR of 4.51% and 5.33% as of December 31, 2024 and December 31, 2023, respectively, inclusive of weighted average interest rate floor of 0.63% and 0.38%, respectively. As of December 31, 2024 and December 31, 2023, 100.0% of the investments by total investment exposure earned a floating rate indexed to 30-day term SOFR.

(4) As of December 31, 2024, $1,049,886,009 of the outstanding senior secured loans were held in VIEs and $(1,082,931) of the outstanding senior secured loans were held outside of VIEs. As of December 31, 2023, $1,375,277,312 of the outstanding senior secured loans were held in VIEs and $8,603,886 of the outstanding senior secured loans were held outside of VIEs.


	Commercial Mortgage Loans Held-for-Investment
Balance at December 31, 2022	$	1,071,889,518
Purchases and advances	594,201,680
Principal payments	(277,481,511)
Accretion of purchase discount	1,070,701
Amortization of purchase premium	(19,253)
Accretion of deferred loan fees	292,073
Cumulative-effect adjustment upon adoption of ASU 2013-16	(3,549,501)
Provision for credit losses	(2,522,510)
Balance at December 31, 2023	$	1,383,881,197
Purchases and advances	58,423,744
Principal repayments	(391,025,468)
Origination and other loan fees	(1,487,623)
Accretion of purchase discount	3,534,649

Accretion of deferred loan fees	737,793

Provision for credit losses	(5,261,214)
Balance at December 31, 2024	$	1,048,803,078

Loan Risk Ratings: As further described in Note 2, the Company evaluates the commercial mortgage loan portfolio on a quarterly basis and assigns a risk rating based on a variety of factors. The following table presents the principal balance and net book value of the loan portfolio based on the Company's internal risk ratings as of December 31, 2024 and December 31, 2023:


December 31, 2024
				Amortized Cost by Year of Origination
Risk Rating	Number of Loans	Outstanding Principal		2024		2023		2022		2021
1	—	$	—	$	—	$	—	$	—	$	—
2	3	57,840,000		27,048,495		—		30,416,761		—
3	40	616,637,103		31,019,735		17,973,555		266,895,843		294,277,177
4	16	292,826,616		—		—		140,183,307		147,641,857
5	6	98,259,927		—		—		74,158,849		19,187,499
	65	$	1,065,563,646	$	58,068,230	$	17,973,555	$	511,654,760	$	461,106,533


December 31, 2023
				Amortized Cost by Year of Origination
Risk Rating	Number of Loans	Outstanding Principal		2023		2022		2021		2019
1	—	$	—	$	—	$	—	$	—	$	—
2	3	37,720,000		—		37,276,159		—		—
3	67	1,019,844,272		17,887,019		449,921,414		542,010,684		—
4	16	294,150,124		—		134,664,646		156,450,510		—
5	2	45,670,764		—		—		8,889,177		36,781,588
	88	$	1,397,385,160	$	17,887,019	$	621,862,219	$	707,350,371	$	36,781,588

As of December 31, 2024, the average risk rating of the commercial mortgage loan portfolio was 3.5 (Moderate Risk), weighted by investment carrying value, with 63.7% of commercial loans held-for-investment rated 3 (Moderate Risk) or better by the Company's Manager.

As of December 31, 2023, the average risk rating of the commercial mortgage loan portfolio was 3.5 (Moderate Risk), weighted by investment carrying value, with 75.7% of commercial loans held-for-investment rated 3 (Moderate Risk) or better by the Company's Manager.

The average risk rating of the portfolio remained consistent during the year ended December 31, 2024. The change in underlying risk rating consisted of loans that paid off with a risk rating of "3" of $277.5 million, a risk rating of "4" of $67.1 million and a risk rating of "5" of $45.7 million, offset by purchases of commercial mortgage loans with a risk rating of "2" of $27.1 million and a risk rating of "3" of $31.3 million during the year ended December 31, 2024. Additionally, $7.0 million of loans with a risk rating of "2" transitioned to a risk rating of "3", $225.7 million of loans with a risk rating of "3" transitioned to a

risk rating of "4", $6.1 million of loans transitioned from a risk rating of "3" to a risk rating of "5", $67.8 million of loans transitioned from a risk rating of "4" to a risk rating of "3", and $92.2 million of loans transitioned from a risk rating of "4" to a risk rating of "5".

Concentration of Credit Risk: The following tables present the geographic and property types of collateral underlying the Company's commercial mortgage loans as a percentage of the loans' carrying value as of December 31, 2024 and December 31, 2023:


	Year ended
	December 31, 2024		December 31, 2023
Allowance for credit losses at beginning of period	$	6,059,006	$	4,258,668
Cumulative-effect adjustment upon adoption of ASU 2016-13	—		3,549,501
Provision for credit losses	5,261,214		2,522,510
Charge offs	—		(4,271,673)
Allowance for credit losses at end of period	$	11,320,220	$	6,059,006

The following table presents the changes for the years ended December 31, 2024 and December 31, 2023 in the provision for credit losses on the unfunded commitments of the Company's loans held-for-investment:


	Year ended
	December 31, 2024		December 31, 2023
Allowance for credit losses at beginning of period	$	43,647	$	—
Cumulative-effect adjustment upon adoption of ASU 2016-13	—		41,939
Provision for credit losses	13,907		1,708
Allowance for credit losses at end of period	$	57,554	$	43,647


	December 31, 2024
	General Reserve		Specific Reserve		Total Reserve
Allowance for credit losses:
Loans held for investment	$	7,544,969	$	3,775,251	$	11,320,220
Unfunded loan commitments	57,554		—		57,554
Total allowance for credit losses	$	7,602,523	$	3,775,251	$	11,377,774
Total unpaid principal balance	$	967,303,719	$	98,259,927	$	1,065,563,646


	December 31, 2023
	General Reserve		Specific Reserve		Total Reserve
Allowance for credit losses:
Loans held for investment	$	6,059,006	$	—	$	6,059,006
Unfunded loan commitments	43,647		—		43,647
Total allowance for credit losses	$	6,102,653	$	—	$	6,102,653
Total unpaid principal balance	$	1,397,385,160	$	—	$	1,397,385,160

The Company's $3.6 million change to the allowance for credit losses, due to the adoption of CECL methodology in the first quarter of 2023 (as described in Note 2) over performing loans on which the Company had not carried an allowance for credit losses is reflected as a direct charge to retained earnings on our Consolidated Statements of Changes in Equity. During the year ended December 31, 2024, the Company recorded an increase of $5.3 million in the allowance for credit losses, bringing the total allowance for credit loss to $11.4 million as of December 31, 2024. For the year ended December 31, 2024, the Company's estimate of expected credit losses increased primarily due to specific reserves taken on risk-rated "5" multifamily loans and changes in macroeconomic assumptions employed in determining the Company's model-based general reserve, partially offset by a reduction in total unpaid principal balance.

During the period ended December 31, 2024, management identified a loan, collateralized by two multifamily properties in Philadelphia, PA, with an unpaid aggregate principal value of $15.0 million as requiring individual evaluation for a specific allowance for credit losses due to monetary default, and a resulting risk rating of "5"; a specific allowance of $0.1 million for credit losses was required after analysis of the underlying collateral value. This loan has been on non-accrual status since June 30, 2024 as a result of monetary default, with interest collections accounted for under the cost recovery method. During the year ended December 31, 2024, the Company applied $0.8 million in interest received from the borrower as a reduction in the carrying basis of this loan.

During the period ended December 31, 2024, management identified a loan, collateralized by a multifamily property in Dallas, TX, with an unpaid aggregate principal value of $31.6 million as requiring individual evaluation for a specific allowance for credit losses due to technical default, and a resulting risk rating of "5"; however no specific allowance for credit losses was required after analysis of the underlying collateral value.

During the period ended December 31, 2024, management identified a loan, collateralized by a multifamily property in Orlando, FL, with an unpaid aggregate principal value of $19.6 million as requiring individual evaluation for a specific allowance for credit losses due to monetary default, and a resulting risk rating of "5"; a specific allowance of $0.4 million for credit losses was required after analysis of the underlying collateral value. This loan was placed on non-accrual status as of December 31, 2024 as a result of the monetary default, with interest recorded as income on a cash basis.

During the period ended December 31, 2024, management identified a loan, collateralized by a multifamily property in San Antonio, TX, with an unpaid aggregate principal value of $15.4 million as requiring individual evaluation for a specific allowance for credit losses due to technical default, and a resulting risk rating of "5"; a specific allowance of $1.6 million for credit losses was required after analysis of the underlying collateral value. This loan was placed on non-accrual status as of December 31, 2024 as a result of the technical default, with interest recorded as income on a cash basis.

During the period ended December 31, 2024, management identified a loan, collateralized by two healthcare properties in Polk County, FL, with an unpaid aggregate principal value of $6.1 million as requiring individual evaluation for a specific allowance for credit losses due to monetary default, and a resulting risk rating of "5"; a specific allowance of $0.6 million for credit losses was required after analysis of the underlying collateral value. This loan was placed on non-accrual status as of December 31, 2024 as a result of the monetary default, with interest recorded as income on a cash basis.

During the period ended December 31, 2024, management identified a loan, collateralized by a multifamily property in Colorado Springs, CO, with an unpaid aggregate principal value of $10.5 million as requiring individual evaluation for a specific allowance for credit losses due to monetary default, and a resulting risk rating of "5"; a specific allowance of $1.1 million for credit losses was required after analysis of the underlying collateral value. This loan was placed on non-accrual status as of December 31, 2024 as a result of the monetary default, with interest recorded as income on a cash basis.

In February 2023, in connection with the sale of the office building collateralizing an impaired loan by the borrower to an unaffiliated third-party, the Company accepted a discounted payoff of approximately $6.0 million on the impaired loan, which had an unpaid principal balance of $10.3 million. A specific allowance for credit loss of $4.3 million was recorded for this impaired loan in the year ended December 31, 2023. Upon the discounted payoff, a $4.3 million charge off against the allowance for credit losses was recorded, with de minimis impact to income in the year ended December 31, 2024.

Throughout 2023, management identified one loan, collateralized by a multifamily property in Columbus, Ohio, with an initial unpaid principal value of $12.8 million as impaired due to monetary default resulting in a risk rating of "5." In the first quarter of 2023, this loan was placed on non-accrual status with

interest collections accounted for under the cost recovery method. As of December 31, 2023, the carrying value of this loan was $8.9 million, which reflected a $5.0 million payment received on November 25, 2023 under an insurance claim, of which $3.1 million was applied to carrying value reduction and a $1.9 million payable established primarily related to a tenant settlement. As of December 31, 2023, no specific reserves were required after analysis of the underlying collateral value. During the year ended December 31, 2024, we received additional insurance proceeds in the amount of $13.8 million which reduced the carrying value of this loan to zero, and after taking into consideration repayment of an interest rate cap and certain legal and other costs and amounts deemed recoverable, resulting in the recognition of approximately $2.8 million of income for the year ended December 31, 2024.

During the period ended December 31, 2023, management identified one loan, collateralized by a multifamily property in Virginia Beach, VA, with an unpaid principal balance of $36.8 million as impaired due to monetary default resulting in a risk rating of "5"; however, no specific asset reserves were required after analysis of underlying collateral value. This loan was on non-accrual status as a result of monetary default and impaired loan classification. In the first quarter of 2024, the Company and the borrower entered into a loan modification and the loan was returned to accrual status. In connection with the modification, the borrower, among other things, made a principal payment of approximately $3.6 million and brought current any past due interest, escrows and

reserves, which resulted in interest of approximately $0.5 million that was unpaid as of December 31, 2023 recognized as income in the quarter ended March 31, 2024. The note rate on the loan was amended to SOFR + 400 basis points from SOFR + 327 basis points and the stated maturity date of the loan was amended to April 5, 2024, with the ability for borrower to extend, under certain conditions, to May 3, 2024. On May 3, 2024, the loan repaid in full according to the terms of the loan modification.