Financial Analysis

"Note 3 - Business Combinations Acquisition of NewPoint On July 1, 2025 (the Acquisition Date), the Company completed the acquisition (""the Transaction"") of NewPoint, a commercial real estate finance company offering lending solutions nationwide to investors in multifamily, affordable housing, seniors housing, healthcare, and manufactured housing properties. The Transaction has expanded the Company's presence in the multifamily lending sector, with the opportunity to enhance its diversified mortgage finance platform and capitalize on agency capabilities. The Company purchased 100% of the outstanding equity interests of NewPoint for an aggregate purchase price of $427.8 million, comprised of $336.9 million in cash and $90.9 million of equity, in the form of 8,385,951 Class A units of the OP (""OP Units"") issued as consideration. The OP Units were valued based on the closing market price of the Company's common shares on the acquisition date. The Company operates the acquired business through a taxable REIT subsidiary. The Company accounted for the Transaction as a business combination under the acquisition method of accounting, which requires allocation of the total consideration transferred to the assets acquired and liabilities assumed based on their fair values as of the Acquisition Date, with the excess of the consideration transferred over those fair values recorded as goodwill. Determining the fair value of the assets acquired requires significant judgments, assumptio …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

Note 16 - Commitments and Contingencies Unfunded Commitments Under Commercial Mortgage Loans, Held for Investment As of June 30, 2026, the Company had the below unfunded commitments to the Company's borrowers (dollars in thousands): Funding Expiration June 30, 2026 December 31, 2025 2026 $ 21,407 $ 77,167 2027 97,452 132,465 2028 155,460 195,100 2029 10,927 9,147 2030 and beyond Total $ 285,246 $ 413,879 The borrowers are generally required to meet or maintain certain metrics in order to qualify for the unfunded commitment amounts. Unfunded Commitments Under Commercial Mortgage Loans, Held for Sale Commitments to extend credit by the Company are generally agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Occasionally, the commitments may expire without being drawn upon; therefore, the total commitment amounts do not necessarily represent future cash requirements. As of June 30, 2026, the Company had $29.1 million and $484.7 million of unfunded commitments to fund loans and sell loans, net, respectively. Mortgage Impairment Insurance As of June 30, 2026, the Company carried mortgage impairment and mortgagees errors and omissions insurance each with a limit of $50 million. Mortgage impairment insurance provides the Company with hazard insurance coverage for mortgage loan collateral in the event of a catast …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Note 12 - Debt Below is a summary of the Company's Repurchase facilities and revolving credit facilities - commercial mortgage loans (""Repo and Revolving Credit Facilities""), Mortgage note payable, Other financings and Unsecured debt as of June 30, 2026 and December 31, 2025 (dollars in thousands): June 30, 2026 Repo and revolving credit facilities - commercial mortgage loans (2) : Capacity Amount Outstanding Interest Expense (1) Ending Weighted Average Interest Rate Term Maturity JPM Repo Facility (3) $ 750,000 $ 481,069 $ 18,280 5.84 % 07/2027 Atlas Repo Facility 350,000 77,878 5,918 6.26 % 01/2027 WF Repo Facility (4) 250,000 2,214 N/A 10/2027 Barclays Revolver Facility (5) 100,000 62 N/A 09/2026 Barclays Repo Facility (5) 500,000 1,856 N/A 03/2028 MS Repo Facility (6) 150,000 N/A 05/2029 BAML WH Line of Credit (8) 450,000 13,442 1,044 4.92 % 06/2027 Fifth Third WH Line of Credit (8) 400,000 56,427 521 4.92 % 07/2027 Fifth Third Line of Credit (9) 125,000 946 N/A 03/2027 JPM WH Line of Credit (10) 700,000 127,720 1,546 5.00 % 01/2027 PNC WH Line of Credit (11) 500,000 45,844 827 4.95 % 12/2026 ASAP WH Line of Credit (12) 100,000 N/A N/A Total/Weighted average $ 4,375,000 $ 802,380 $ 33,214 5.62 % Mortgage note payable: Debt related to our REO (13) N/A $ 24,186 $ 767 5.88 % 04/2029 Other financings: Other financings (14) N/A $ 12,865 $ 388 6.00 % 07/2028 Unsecured Debt Senior Notes (15)(16) N/A $ 107,000 $ 4,761 Various (15)(16) Various (15)(16) Junior Note I (17) N/A 17 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Note 19 - Fair Value of Financial Instruments GAAP establishes a hierarchy of valuation techniques based on the observability of inputs used in measuring financial instruments at fair values. GAAP establishes market-based or observable inputs as the preferred source of values, followed by valuation models using management assumptions in the absence of market inputs. The three levels of the hierarchy are described below: Level I - Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level II - Inputs (other than quoted prices included in Level I) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instruments anticipated life. Level III - Unobservable inputs that reflect the entity's own assumptions about the assumptions that market participants would use in the pricing of the asset or liability and are consequently not based on market activity, but rather through particular valuation techniques. The determination of where an asset or liability falls in the above hierarchy requires significant judgment and factors specific to the asset or liability. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Note 11 - Goodwill & Other Intangible Assets Goodwill The carrying amount of goodwill was as follows (dollars in thousands). The goodwill is attributable entirely to the Agency Business. Agency Business Total Balance at December 31, 2025 $ 92,048 $ 92,048 Goodwill acquired during the period Balance at June 30, 2026 $ 92,048 $ 92,048 Intangible Assets The following table summarizes the carrying value of the Companys intangible assets, as described in Note 2 as of June 30, 2026 and December 31, 2025 (dollars in thousands): June 30, 2026 December 31, 2025 Carrying Value Accumulated Amortization Total Carrying Value Accumulated Amortization Total Indefinite lived intangibles: Agency License Intangibles $ 72,500 $ $ 72,500 $ 72,500 $ $ 72,500 Finite lived intangibles: Non-compete Agreements $ 5,200 $ (5,200) $ $ 5,200 $ (3,317) $ 1,883 Software development 4,780 (928) 3,852 4,660 (444) 4,216 Intangible lease assets 49,192 (13,678) 35,514 49,192 (12,238) 36,954 Total $ 131,672 $ (19,806) $ 111,866 $ 131,552 $ (15,999) $ 115,553 Amortization expense for the three and six months ended June 30, 2026 was $1.2 million and $3.8 million, respectively. Amortization expense for the three and six months ended June 30, 2025 was $0.7 million and $1.4 million, respectively. The following table summarizes the Company's expected other identified intangible assets, net amortization over the next five years (dollars in thousands): Weighted Avg. Life (in Years) 2026 (July - December) 2027 2028 2 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Note 10 - Leases The Company leases office space, classified as operating leases, in the normal course of business at varying lengths through 2033. Leases are negotiated with third parties and, in some instances, contain renewal, expansion and termination options. As of June 30, 2026 and December 31, 2025, the Company recorded ROU assets of $7.5 million and $8.4 million within Prepaid expenses and other assets , and operating lease liabilities of $9.5 million and $10.5 million within other liabilities, on the consolidated balance sheets, respectively. All lease commencement dates are recorded as of July 1, 2025 in conjunction with the acquisition of NewPoint. Three Months Ended June 30, 2026 Six Months Ended June 30, 2026 Lease Cost: Operating lease cost $ 620 $ 1,208 Variable lease cost 205 419 Net lease cost $ 825 $ 1,627 Other Information Operating cash outflows from operating leases $ 663 $ 1,322 Weighted-average remaining lease term 5.1 Weighted-average discount rate 6.7 % Operating lease cost is included in Other expenses in the consolidated statement of operations. The discount rate was determined by using the Company's incremental borrowing rate. The following table shows future minimum payments under the Company's operating leases as of June 30, 2026 (dollars in thousands): Future Minimum Payments June 30, 2026 2026 (Six Months Ended December 31, 2026) $ 1,320 2027 2,520 2028 2,381 2029 2,004 2030 804 2031 and beyond 2,246 Total Lease Payments 11,275 Less: imputed in …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recently Issued Accounting Pronouncements In November 2024, the FASB issued ASU No. 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40). ASU 2024-03 requires disaggregated disclosures of certain categories of expenses that are included on the face of the income statement. The standard is to be adopted prospectively, with the option to apply retrospectively, and is effective for annual periods starting after December 15, 2026. The Company is currently assessing the impact that ASU 2024-03 will have on the consolidated financial statements. In September 2025, the FASB issued ASU, 2025-06 Intangibles - Goodwill and Other Internal-Use Software (Subtopic 350-40), or ASU 2025-06. ASU 2025-06 modernizes the accounting for software costs. ASU 2025-06 is effective on a prospective basis, with options for modified transition and retrospective application, for annual periods beginning after December 15, 2027 and early adoption is permitted. The Company is currently assessing the impact that ASU 2025-06 will have on the consolidated financial statements. …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"Note 18 - Related Party Transactions and Arrangements Advisory Agreement Fees and Reimbursements Pursuant to the Advisory Agreement, the Company is required to make the following payments and reimbursements to the Advisor: The Company reimburses the Advisors costs of providing services pursuant to the Advisory Agreement, except the salaries and benefits paid by the Advisor to the Companys executive officers. The Company pays the Advisor, or its affiliates, a monthly asset management fee equal to one-twelfth of 1.5% of stockholders' equity as calculated pursuant to the Advisory Agreement. The Company will pay the Advisor an annual subordinated performance fee calculated on the basis of total return to stockholders, payable monthly in arrears, such that for any year in which total return on stockholders capital (as defined in the Advisory Agreement) exceeds 6.0% per annum, our Advisor will be entitled to 15.0% of the excess total return; provided that in no event will the annual subordinated performance fee payable to our Advisor exceed 10.0% of the aggregate total return for such year. The Company reimburses the Advisor for insourced expenses incurred by the Advisor on the Company's behalf related to selecting, evaluating, originating and acquiring investments in an amount up to 0.5% of the principal amount funded by the Company to originate or acquire commercial mortgage loans and up to 0.5% of the anticipated net equity funded by the Company to acquire real estate securitie …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

Note 22 - Segment Reporting Effective July 1, 2025, in order to better align with the manner in which the CODM reviews financial performance and allocates resources, the Company combined the real estate debt business and the real estate securities business into one reportable segment, Real Estate Debt and Other Real Estate Investments. Additionally, following the acquisition of the NewPoint business, the Company added Agency as a new reportable segment to reflect the distinct nature of its agency-related origination and servicing activities. Prior period segment results have been recast to conform to this new presentation. These changes affect only the presentation of the Companys reportable segments and have no impact on its consolidated financial position, results of operations, or cash flows. The Company conducts its business through the following segments: The real estate debt business focuses on originating, acquiring and asset managing commercial real estate debt investments, including first mortgages, subordinate mortgages, mezzanine loans and participations in such loans. The business also focuses on investing in and asset managing real estate securities, historically focusing on CMBS, CMBS bonds, CDO notes, and other securities. The Agency Business focuses on originating, selling, and servicing loans under programs offered by GSEs and Agencies, such as Fannie Mae, Freddie Mac, Ginnie Mae, and HUD. Additionally, the business services external portfolios of commercial …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Note 2 - Summary of Significant Accounting Policies Basis of Accounting The Company's unaudited consolidated financial statements and related footnotes have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America (""GAAP"") for interim financial statements and pursuant to the requirements for reporting on Form 10-Q and Regulation S-X, as appropriate. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto as of, and for the year ended December 31, 2025, which are included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission (""SEC"") on February 25, 2026, as certain disclosures that would substantially duplicate those contained in the audited consolidated financial statements have not been included in this report. Reclassifications Certain prior year balances have been reclassified in order to conform to the current period presentation. For the six months ended June 30, 2025, $5.3 million was reclassified from Realized gain/(loss) on sale of commercial mortgage loans, held for sale, measured at fair value to Gain/(loss) on sales, including fee-based services, net on the consolidated statements of operations. For the six months ended June 30, 2025, Unrealized gain/(loss) on derivatives and Realized gain/(loss) on derivatives were combined and reclassified to Gain/(loss) on derivative …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

"Note 15 - Redeemable Convertible Preferred Stock and Equity Transactions The following table presents the summary of the Company's outstanding shares of redeemable convertible preferred stock, perpetual preferred stock, and common stock as of June 30, 2026 and December 31, 2025 (in thousands, except share and per share amounts): Balance as of Shares Outstanding as of Second Quarter 2026 Dividend Per Share (1) June 30, 2026 December 31, 2025 June 30, 2026 December 31, 2025 Redeemable Convertible Preferred Stock: Series H Preferred Stock (2) $ 89,748 $ 89,748 17,950 17,950 $ 59.84 Perpetual Preferred Stock: Series E Preferred Stock $ 258,742 $ 258,742 10,329,039 10,329,039 $ 0.46875 Common Stock: Common Stock - at par value (3)(4) $ 750 $ 808 75,436,265 81,553,982 $ 0.20 ________________________ (1) As declared by the Company's board of directors. (2) On January 14, 2026, the Series H Preferred Stock was amended such that the mandatory conversion date was extended by two years, to January 21, 2028. Unless earlier converted, the Series H Preferred Stock will automatically convert into common stock at a rate of 299.2 shares of common stock per share of Series H Preferred Stock (subject to adjustments as described in the Articles Supplementary for the Series H Preferred Stock) on January 21, 2028. The holder of the Series H Preferred Stock has the right to convert up to 4,487 shares of Series H Preferred Stock one time in each calendar month through and including the month prior …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Note 24 - Subsequent Events The Company has evaluated subsequent events through the filing of this Quarterly Report on Form 10-Q. The following activity took place subsequent to the quarter ended June 30, 2026: Subsequent to quarter end, 7,918,314 OP Units were redeemed, where each OP Unit was equal to one share of the Companys common stock. These OP Units were previously issued in connection with the Companys acquisition of NewPoint on July 1, 2025. On July 28, 2026, the Company's board of directors approved and authorized an increase under the Company's share repurchase program an aggregate amount of up to $50.0 million in shares of common stock through December 31, 2026. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing