Financial Analysis

Commitments and Contingencies Lending Commitments The Company has lending commitments to borrowers pursuant to certain loan agreements in which the borrower may submit a request for funding contingent on achieving certain criteria, which must be approved by the Company as lender, such as leasing, perf ormance of capital expenditures and construction in progress with an approved budget. At June 30, 2026, assuming the terms to qualify for future fundings, if any, had been met, total unfunded lending commitments for loans and preferred equity held for investment were $137.9 million for senior loans, $1.7 million for mezzanine loans and $5.9 million for preferred equity. At December 31, 2025, total unfunded lending commitments for loans held for investment were $101.9 million for senior loans, $2.1 million for mezzanine loans and $8.2 million for preferred equity. Ground Lease Obligation In connection with real estate acquisitions, the Company assumed certain non-cancellable operating ground leases as lessee or sublessee with expiration dates through 2050. Rent on certain ground leases are paid directly by tenants. At June 30, 2026 and December 31, 2025, the weighted average remaining lease term was 4.8 years and 11.8 years for ground leases, respectively. The following table presents ground lease expense, included in property operating expense, for the three and six months ended June 30, 2026 and 2025 (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Debt The following table presents debt as of June 30, 2026, and December 31, 2025 (dollars in thousands): June 30, 2026 December 31, 2025 Capacity ($) Recourse vs. Non-Recourse (1) Final Maturity Contractual Interest Rate Principal Amount (2) Carrying Value (2) Principal Amount (2) Carrying Value (2) Securitization bonds payable, net BRSP 2026-FL3 (3) Non-recourse Aug-43 SOFR + 1.69% $ 833,237 $ 827,804 $ $ BRSP 2024-FL2 (3) Non-recourse Aug-37 SOFR + 2.47% 583,875 580,046 583,875 578,879 BRSP 2021-FL1 (3) Non-recourse (4) (4) 398,215 398,203 Subtotal securitization bonds payable, net 1,417,112 1,407,850 982,090 977,082 Mortgage and other notes payable, net Net lease 1 Non-recourse Sep-33 4.77% 200,000 199,122 200,000 199,068 Net lease 3 Non-recourse Aug-26 4.08% 27,585 27,576 27,958 27,928 Net lease 4 Non-recourse Oct-27 4.45% 20,398 20,398 20,730 20,730 Net lease 5 (5)(6) Non-recourse Nov-26 4.45% 15,993 15,959 16,222 16,153 Net lease 5 (7) Non-recourse Mar-28 7.25% 10,700 10,263 10,800 10,362 Net lease 6 (6) Non-recourse Nov-26 4.45% 6,354 6,341 6,445 6,418 Net lease 8 (6) Non-recourse Nov-26 4.45% 2,945 2,937 2,987 2,975 Other real estate 1 Non-recourse Dec-28 (8) 4.47% 95,967 95,417 97,082 96,348 Loan 1 (9) Non-recourse Jul-28 (9) 5.50% 33,591 33,591 34,078 34,078 Subtotal mortgage and other notes payable, net 413,533 411,604 416,302 414,060 Bank credit facility Bank credit facility $ 120,000 Recourse Dec-28 (10) SOFR + 2.25% 70,000 70,000 Subtotal bank credit facility …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Equity-Based Compensation On March 30, 2026, the Companys board of directors adopted, and at the annual meeting of stockholders held on May 13, 2026, the stockholders approved the second amendment to the 2022 Equity Incentive Plan (as amended, the 2022 Plan), which was effective as of May 13, 2026 and increases the total number of shares of the Class A common stock issuable by 10.0 million shares (subject to adjustment pursuant to the terms of the 2022 Plan). The 2022 Plan terminates on May 4, 2032. Awards may be granted under the 2022 Plan to (x) any employee, officer, director, consultant or advisor (who is a natural person) providing services to the Company, or its affiliates and (y) any other individual whose participation in the 2022 Plan is determined to be in the best interests of the Company. The following types of awards may be made under the 2022 Plan, subject to the limitations set forth in the plan: (i) stock options (which may be either incentive stock options or non-qualified stock options); (ii) stock appreciation rights; (iii) restricted stock awards; (iv) stock units; (v) unrestricted stock awards; (vi) dividend equivalent rights; (vii) performance awards; (viii) annual cash incentive awards; (ix) long-term incentive units; and (x) other equity-based awards. Shares subject to an award granted under the 2022 Plan will be counted against the maximum number of shares of Class A common stock available for issuance thereunder as one share of Class A common stock f …

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Fair Value Fair Value Option The Company may elect to apply the fair value option of accounting for certain of its financial assets or liabilities due to the nature of the instrument at the time of the initial recognition of the investment. As of June 30, 2026, the Company has elected not to apply the fair value option for any other eligible financial assets or liabilities. Fair Value of Financial Instruments In addition to the above disclosures regarding financial assets or liabilities which are recorded at fair value, GAAP requires disclosure of fair value about all financial instruments. The following disclosure of estimated fair value of financial instruments was determined by the Company using available market information and appropriate valuation methodologies. Considerable judgment is necessary to interpret market data and develop estimated fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize on disposition of the financial instruments. The use of different market assumptions and/or estimation methodologies may have a material effect on estimated fair value. The following table presents the principal amount, carrying value and fair value of certain financial assets and liabilities as of June 30, 2026 and December 31, 2025 (dollars in thousands): June 30, 2026 December 31, 2025 Principal Amount Carrying Value Fair Value Principal Amount Carrying Value Fair Value Financial assets: (1) Loans and pr …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Future Application of Accounting Standards Disaggregation of Income Statement Expenses In November 2024, the FASB issued ASU No. 2024-03, Income Statement- Reporting Comprehensive Income- Expense Disaggregation Disclosures (Subtopic 220-40) , and in January 2025, the FASB issues ASU No. 2025-01, Income Statement- Reporting Comprehensive Income- Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date. ASU 2024-03 requires disclosures on certain costs and expenses for each interim and annual reporting period. ASU No. 2024-03, as clarified by ASU No. 2025-01, is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The Company does not expect the adoption of ASU No. 2024-03 to have a material impact on its consolidated financial statements. Business Combinations and Consolidation In May 2025, the FASB issued ASU No. 2025-03, Business Combinations and Consolidation: Determining The Accounting Acquirer In The Acquisition of a Variable Interest Entity. The ASU requires reporting entities involved in a business combination effected primarily by the exchange of equity interests to consider the new guidance to determine which entity is the accounting acquirer regardless of whether the legal acquiree is a VIE. As a result, a reporting entity can determine that a transaction in which the legal acquiree is a VIE represents a reverse acquisition and …

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Related Party Arrangements The Company had no related party transactions as of and for the six months ended June 30, 2026 and 2025.

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Segment Reporting The Company presents its business through three operating and reportable segments described below and is how management views the business activities of the Company. Senior and Mezzanine Loans and Preferred EquityCRE debt investments including senior and mezzanine loans, and preferred equity interests as well as participations in such loans. Net Leased and Other Real Estatedirect investments in CRE with long-term leases to tenants on a net lease basis, where such tenants generally will be responsible for property operating expenses such as insurance, utilities, maintenance, capital expenditures and real estate taxes. It also includes other real estate, currently consisting of one investment with direct ownership in commercial real estate and four additional properties that the Company acquired through foreclosure or deed-in-lieu of foreclosure and two properties that the Company consolidates as the primary beneficiary. Corporate and Otherincludes corporate-level asset management and other fees including expenses related to the Companys secured revolving credit facility (the Bank Credit Facility) and compensation and benefits. It also includes money market income on its cash balances and a sub-portfolio of private equity funds. U.S. GAAP defines the Chief Operating Decision Maker (CODM) as the person or persons who perform the function of allocating resources to and assessing the performance of segments of a public entity. The Company has identified the CODM …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

2. Summary of Significant Accounting Policies The significant accounting policies of the Company are described below. The accounting policies of the Companys unconsolidated ventures are substantially similar to those of the Company. Basis of Presentation The accompanying unaudited interim financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and footnotes required by generally accepted accounting principles in the United States of America (GAAP) for complete financial statements. These statements reflect all normal and recurring adjustments which, in the opinion of management, are necessary to present fairly the financial position, results of operations and cash flows of the Company for the interim periods presented. However, the results of operations for the interim period presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2026, or any other future period. These interim financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in, or presented as exhibits to, the Companys Annual Report on Form 10-K for the year ended December 31, 2025, as certain disclosures that would substantially duplicate those contained in the audited consolidated financial statements have not been included in this interim report. Use of Estimates The preparat …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Stockholders Equity Authorized Capital As of June 30, 2026, the Company had the authority to issue up to 1.0 billion shares of stock, at $0.01 par value per share, consisting of 950.0 million shares of Class A common stock and 50.0 million shares of preferred stock. The Company had no shares of preferred stock issued and outstanding as of June 30, 2026 and December 31, 2025. Dividends During the six months ended June 30, 2026 and 2025, the Company declared the following dividends on its common stock: Declaration Date Record Date Payment Date Per Share March 16, 2026 March 31, 2026 April 15, 2026 $0.16 June 15, 2026 June 30, 2026 July 15, 2026 $0.16 March 17, 2025 March 31, 2025 April 15, 2025 $0.16 June 16, 2025 June 30, 2025 July 14, 2025 $0.16 Share Repurchases In April 2026, the Companys board of directors have authorized a stock repurchase program (Stock Repurchase Program) under which the Company may repurchase up to $50.0 million of its outstanding Class A common stock until April 30, 2027. The Stock Repurchase Program replaces the prior repurchase program authorization which expired on April 30, 2026. Under the Stock Repurchase Program, the Company may repurchase shares in open market purchases, in privately negotiated transactions or otherwise. The Company has a written trading plan as part of the Share Repurchase Program that provides for share repurchases in open market transactions that is intended to comply with Rule 10b-18 under the Exchange Act. The Stock Repurc …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Subsequent Events Dividends In July 2026, the Company paid a quarterly cash dividend of $0.16 per share of its Class A common stock for the quarter ended June 30, 2026, to stockholders of record as of June 30, 2026. Loan Originations Subsequent to June 30, 2026, the Company originated three senior mortgage loans with a total commitment of $116.9 million. Purchase and Sale Agreement In July 2026, the Company executed a purchase and sale agreement to sell a Fort Worth, Texas multifamily property that is expected to generate gross proceeds of $32.5 million.

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