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COMMERCIAL MORTGAGE LOANS HELD-FOR-INVESTMENT (Tables)
 9 Months Ended
Sep. 30, 2025
Receivables [Abstract]  
Schedule of Commercial Mortgage Loans
The following tables summarize certain characteristics of the Company's investments in commercial mortgage loans as of September 30, 2025 and December 31, 2024:




Weighted Average
Loan TypeUnpaid Principal Balance
Carrying Value(1)
Loan CountFloating Rate Loan %
Coupon(2)
Term
 (Years)(3)
September 30, 2025
Loans held-for-investment
Senior secured loans(4)
$839,749,478 $835,863,888 51 100.0 %7.8 %1.3
Allowance for credit lossesN/A(14,020,408)
839,749,478 821,843,480 51 100.0 %7.8 %1.3

Weighted Average
Loan TypeUnpaid Principal Balance
Carrying Value(1)
Loan CountFloating 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 lossesN/A(11,320,220)
1,065,563,646 1,048,803,078 65 100.0 %8.1 %2.1

(1)    Carrying Value includes $1,928,239 and $3,466,214 in unamortized purchase discounts as of September 30, 2025 and December 31, 2024, respectively.
(2)    Weighted average coupon assumes applicable 30-day term Secured Overnight Financing Rate ("SOFR") of 4.22% and 4.51% as of September 30, 2025 and December 31, 2024, respectively, inclusive of weighted average interest rate floor of 1.36% and 0.63%, respectively. As of September 30, 2025 and December 31, 2024, 100.0% of the investments by total investment exposure earned a floating rate indexed to 30-day term SOFR.
(3)    Weighted average remaining term assumes all extension options are exercised by the borrower; provided, however, that our loans may be repaid prior to such date.
(4)    As of September 30, 2025, $819,117,267 of the outstanding senior secured loans were held in VIEs and $2,726,213 of the outstanding senior secured loans were held outside of VIEs. 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.

Activity: For the nine months ended September 30, 2025, the loan portfolio activity was as follows:
Commercial Mortgage Loans Held-for-Investment
Balance at December 31, 2024$1,048,803,078 
Purchases, advances and originations3,605,000 
Principal payments(167,141,808)
Transfer to Real Estate Owned(62,580,330)
Charge-offs3,110,581 
Origination and other loan fees(1,801,036)
Accretion of purchase discount1,537,970 
Accretion of deferred loan fees2,120,794 
Provision for credit losses(5,810,769)
Balance at September 30, 2025
$821,843,480 
Schedule of Loan Risk Ratings 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 September 30, 2025 and December 31, 2024:
September 30, 2025
Amortized Cost by Year of Origination
Risk RatingNumber of LoansOutstanding Principal20252024202320222021
1— $— $— $— $— $— $— 
26 68,592,180 3,589,519 — — 64,377,719 — 
318 310,374,570 — 31,128,363 17,986,869 156,538,080 102,005,156 
420 374,220,488 — — — 127,592,859 241,752,690 
57 86,562,240 — — — 52,900,197 23,972,028 
51 $839,749,478 $3,589,519 $31,128,363 $17,986,869 $401,408,855 $367,729,874 

December 31, 2024
Amortized Cost by Year of Origination
Risk RatingNumber of LoansOutstanding Principal2024202320222021
1— $— $— $— $— $— 
23 57,840,000 27,048,495 — 30,416,761 — 
340 616,637,103 31,019,735 17,973,555 266,895,843 294,277,177 
416 292,826,616 — — 140,183,307 147,641,857 
56 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 
Schedule of Geographic Concentrations 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 September 30, 2025 and December 31, 2024:
Loans Held-for-Investment
September 30, 2025December 31, 2024
Geography
South39.9 %36.6 %
Southwest29.6 32.9 
Mid-Atlantic20.5 16.1 
Midwest6.1 7.7 
West3.9 6.7 
Total100.0 %100.0 %
September 30, 2025
December 31, 2024
Collateral Property Type
Multifamily89.6 %92.3 %
Seniors Housing and Healthcare9.7 7.1 
Self-Storage0.7 0.6 
Total100.0 %100.0 %
Schedule of Provision for Credit Losses
The following table presents the changes for the three and nine months ended September 30, 2025 and September 30, 2024 in the provision for credit losses on loans held-for-investment:
Three months endedNine months ended
September 30, 2025September 30, 2024September 30, 2025September 30, 2024
Allowance for credit losses at beginning of period$14,252,268 $9,193,174 $11,320,220 $6,059,006 
(Release of) Provision for credit losses(31,664)322,319 5,810,769 3,456,487 
Charge offs(200,196)— (3,110,581)— 
Allowance for credit losses at end of period$14,020,408 $9,515,493 $14,020,408 $9,515,493 

The following table presents the changes for the three and nine months ended September 30, 2025 and September 30, 2024 in the provision for credit losses on the unfunded commitments of the Company's loans held-for-investment:

Three months endedNine months ended
September 30, 2025September 30, 2024September 30, 2025September 30, 2024
Allowance for credit losses at beginning of period$7,550 $86,055 $57,554 $43,647 
(Release of) provision for credit losses2,004 (4,871)(48,000)37,537 
Allowance for credit losses at end of period$9,554 $81,184 $9,554 $81,184 

The following tables present the allowance for credit losses for loans held-for-investment as of September 30, 2025 and December 31, 2024:

September 30, 2025
General ReserveSpecific ReserveTotal Reserve
Allowance for credit losses:
Loans held for investment$5,699,313 $8,321,095 $14,020,408 
Unfunded loan commitments9,554 — 9,554 
Total allowance for credit losses$5,708,867 $8,321,095 $14,029,962 
Total unpaid principal balance$753,187,238 $86,562,240 $839,749,478 

December 31, 2024
General ReserveSpecific ReserveTotal Reserve
Allowance for credit losses:
Loans held for investment$7,544,969 $3,775,251 $11,320,220 
Unfunded loan commitments57,554 — 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