Blackstone Mortgage Trust : 10Q Quarterly Report - Q1 2026

Published: 2026-04-29 07:16:57 ET BXMT

Published on 04/29/2026 at 07:16 am EDT

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2026

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM TO

Commission File Number: 001-14788

(Exact name of Registrant as specified in its charter) Maryland 94-6181186

(State or other jurisdiction of

incorporation or organization)

345 Park Avenue

New York, New York 10154

(I.R.S. Employer

Identification No.)

(Address of principal executive offices)(Zip Code)

(212) 655-0220

(Registrant's telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbol(s)

Name of each exchange on which registered

Class A common stock, par value $0.01 per share BXMT New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of the registrant's shares of class A common stock, par value $0.01 per share, outstanding as of April 22, 2026 was 168,683,520

Page

PART I.

FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS

Consolidated Financial Statements (Unaudited):

Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025

Consolidated Statements of Operations for the Three Months Ended March 31, 2026 and 2025

Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2026 and 2025

Consolidated Statements of Changes in Equity for the Three Months Ended March 31, 2026 and 2025

Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2026 and 2025

Notes to Consolidated Financial Statements

ITEM 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 4.

CONTROLS AND PROCEDURES

PART II.

OTHER INFORMATION

ITEM 1.

LEGAL PROCEEDINGS

ITEM 1A.

RISK FACTORS

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ITEM 3.

DEFAULTS UPON SENIOR SECURITIES

ITEM 4.

MINE SAFETY DISCLOSURES

ITEM 5.

OTHER INFORMATION

ITEM 6.

EXHIBITS

SIGNATURES 100

Website Disclosure

We use our website (www.blackstonemortgagetrust.com) as a channel of distribution of company information. The information we post through this channel may be deemed material. Accordingly, investors should monitor this channel, in addition to following our press releases, Securities and Exchange Commission, or SEC, filings and public conference calls, and webcasts. In addition, you may automatically receive email alerts and other information about Blackstone Mortgage Trust when you enroll your email address by visiting the "Contact Us and Email Alerts" section of our website at http://ir.blackstonemortgagetrust.com. The contents of our website and any alerts are not, however, a part of this report.

PART I.

‌ITEM 1. FINANCIAL STATEMENTS

‌Blackstone Mortgage Trust, Inc.

Consolidated Balance Sheets (Unaudited) (in thousands, except share data)

March 31, 2026

December 31, 2025

Assets

Cash and cash equivalents

$ 549,153

$ 452,526

Loans receivable

17,557,936

18,069,134

Current expected credit loss reserve

(291,590)

(284,440)

Loans receivable, net

17,266,346

17,784,694

Owned real estate, net

1,149,085

1,134,975

Investments in unconsolidated entities (includes $101,328 and $111,010 at fair value as of March 31, 2026 and December 31, 2025, respectively)

244,400

217,488

Other assets

420,824

413,263

Total Assets

$ 19,629,808

$ 20,002,946

Liabilities and Equity

Secured debt, net

$ 9,089,438

$ 10,117,292

Securitized debt obligations, net

2,874,489

2,139,719

Asset-specific debt, net

959,352

997,746

Term loans, net

1,881,392

1,808,000

Senior secured notes, net

782,215

784,876

Convertible notes, net

265,028

264,745

Other liabilities

359,842

386,178

Total Liabilities

16,211,756

16,498,556

Commitments and contingencies (Note 21)

Equity

Class A common stock, $0.01 par value, 400,000,000 shares authorized, 168,683,520 and 168,259,023 shares issued and outstanding as of March 31, 2026

and December 31, 2025, respectively

1,687

1,683

Additional paid-in capital

5,436,583

5,430,542

Accumulated other comprehensive income

7,857

12,113

Accumulated deficit

(2,031,167)

(1,945,428)

Total Blackstone Mortgage Trust, Inc. stockholders' equity

3,414,960

3,498,910

Non-controlling interests

3,092

5,480

Total Equity

3,418,052

3,504,390

Total Liabilities and Equity

$ 19,629,808

$ 20,002,946

Note: The consolidated balance sheets as of March 31, 2026 and December 31, 2025 include assets of consolidated variable interest entities, or VIEs, that can only be used to settle obligations of each respective VIE, and liabilities of consolidated VIEs for which creditors do not have recourse to Blackstone Mortgage Trust, Inc. As of March 31, 2026 and December 31, 2025, assets of the consolidated VIEs totaled $4.1 billion and $3.3 billion, respectively, and liabilities of the consolidated VIEs totaled $2.9 billion and $2.2 billion, respectively. Refer to Note 19 for further discussion of the VIEs.

See accompanying notes to consolidated financial statements.

‌(in thousands, except share and per share data)

Three Months Ended March 31,

2026

2025

Income from loans and other investments

Interest and related income

$ 305,557

$ 332,057

Less: Interest and related expenses

220,736

242,233

Income from loans and other investments, net

84,821

89,824

Revenue from owned real estate

74,594

37,033

Total net revenue

159,415

126,857

Expenses

Management and incentive fees

14,813

17,235

General and administrative expenses

13,981

12,664

Expenses from owned real estate

81,975

46,302

Total expenses

110,769

76,201

Increase in current expected credit loss reserve

(55,055)

(49,505)

Income (loss) from unconsolidated entities

1,383

(874)

Net loss on disposition of owned real estate

(160)

Other income, net

(Loss) income before income taxes

(5,182)

367

Income tax provision

1,158

718

Net loss

(6,340)

(351)

Net loss (income) attributable to non-controlling interests

(6)

Net loss attributable to Blackstone Mortgage Trust, Inc.

$ (6,297)

$ (357)

Net loss per share of common stock, basic and diluted

$ (0.04)

$ (0.00)

Weighted-average shares of common stock outstanding, basic and diluted

169,078,373

172,004,888

See accompanying notes to consolidated financial statements.

‌Three Months Ended March 31,

2026

2025

Net loss

$ (6,340)

$ (351)

Other comprehensive (loss) income

Unrealized (loss) gain on foreign currency translation

(28,400)

60,901

Realized and unrealized gain (loss) on derivative financial instruments

24,471

(60,394)

Unrealized loss on derivative financial instruments from unconsolidated entities

(327)

(184)

Other comprehensive (loss) income

(4,256)

323

Comprehensive loss

(10,596)

(28)

Comprehensive loss (income) attributable to non-controlling interests

(6)

Comprehensive loss attributable to Blackstone Mortgage Trust, Inc.

$ (10,553)

$ (34)

See accompanying notes to consolidated financial statements.

‌Blackstone Mortgage Trust, Inc.

Class A Common Stock

Additional Paid-

In Capital

Accumulated Other Comprehensive Income (Loss)

Accumulated Deficit

Stockholders' Equity

Non-Controlling Interests

Total Equity

Balance at December 31, 2025

$ 1,683

$5,430,542

$ 12,113

$ (1,945,428)

$ 3,498,910

$ 5,480

$3,504,390

Repurchases of class A common stock

(1)

(801)

(802)

Restricted class A common stock earned

6,484

6,489

Dividends reinvested

160

Deferred directors' compensation

198

Net loss

(6,297)

(43)

(6,340)

Other comprehensive loss

(4,256)

Dividends declared on common stock and deferred stock units, $0.47 per share

(79,442)

Distributions to non-controlling interests

(2,345)

Balance at March 31, 2026

$ 1,687

$5,436,583

$ 7,857

$ (2,031,167)

$ 3,414,960

$ 3,092

$3,418,052

Balance at December 31, 2024

$ 1,728

$5,511,053

$ 8,268

$ (1,733,741)

$ 3,787,308

$ 6,881

$3,794,189

Shares of class A common stock issued, net

(1)

Repurchases of class A common stock

(18)

(31,629)

(31,647)

Restricted class A common stock earned

6,787

6,792

Dividends reinvested

213

Deferred directors'

173

Net (loss) income

(357)

(351)

Other comprehensive income

323

Dividends declared on common stock and deferred stock units, $0.47 per share

(80,837)

Distributions to non-controlling interests

(137)

Balance at March 31, 2025

$ 1,716

$5,486,596

$ 8,591

$ (1,814,935)

$ 3,681,968

$ 6,750

$3,688,718

See accompanying notes to consolidated financial statements.

‌2026

2025

Cash flows from operating activities

Net loss

$ (6,340)

$ (351)

Adjustments to reconcile net loss to net cash provided by operating activities

Non-cash compensation expense

6,687

6,965

Amortization of deferred fees on loans

(15,430)

(10,622)

Amortization of deferred financing costs and premiums/discounts on debt obligations

9,087

9,345

Payment-in-kind interest, net of interest received

(5,106)

(3,570)

Increase in current expected credit loss reserve

55,055

49,505

Straight-line rental income

(1,775)

901

Depreciation and amortization of owned real estate

20,885

16,279

Net loss on disposition of owned real estate

160

(Income) loss from unconsolidated entities

(1,383)

874

Distributions of earnings from unconsolidated entities

12,291

Unrealized loss on derivative financial instruments, net

3,520

2,526

Realized gain on derivative financial instruments, net

(7,481)

(5,480)

Changes in assets and liabilities, net

Other assets

99,013

36,987

Other liabilities

544

(2,843)

Net cash provided by operating activities

169,727

100,516

Cash flows from investing activities

Principal fundings of loans receivable

(290,826)

(1,677,727)

Principal collections, sales proceeds, and cost-recovery proceeds from loans receivable

599,251

1,940,914

Origination and other fees received on loans receivable

12,235

11,965

Investment in debt securities

(66,650)

Payments under derivative financial instruments

(25,866)

(13,384)

Receipts under derivative financial instruments

7,903

93,882

Collateral deposited under derivative agreements

(89,090)

(135,670)

Return of collateral deposited under derivative agreements

107,400

70,840

Investment in unconsolidated entities

(58,893)

(25,626)

Return of capital from unconsolidated entities

20,746

Proceeds from disposition of owned real estate

15,148

Capital expenditures on owned real estate

(10,532)

(4,255)

Net cash provided by investing activities

220,826

260,939

continued…

See accompanying notes to consolidated financial statements.

2026 2025

Cash flows from financing activities

Borrowings under secured debt

210,868

1,029,960

Repayments under secured debt

(1,187,050)

(905,532)

Proceeds from issuance of securitized debt obligations

880,000

831,250

Repayments of securitized debt obligations

(133,608)

(102,782)

Borrowings under asset-specific debt

11,521

203,941

Repayments under asset-specific debt

(48,000)

(936,274)

Net proceeds from term loan borrowings

72,117

Repayments and repurchases of term loans

(3,690)

Payment of deferred financing costs

(16,476)

(22,017)

Distributions to non-controlling interests

(2,345)

(137)

Dividends paid on class A common stock

(79,082)

(81,214)

Repurchases of class A common stock

(802)

(31,647)

Net cash used in financing activities

(292,857)

(18,142)

Net increase in cash and cash equivalents

97,696

343,313

Cash and cash equivalents at beginning of period

452,526

323,483

Effects of currency translation on cash and cash equivalents

(1,069)

1,767

Cash and cash equivalents at end of period

549,153

668,563

Supplemental disclosure of cash flows information

Payments of interest

(206,004)

(245,428)

Payments of income taxes

(1,885)

(782)

Supplemental disclosure of non-cash investing and financing activities

Dividends declared, not paid

(79,281)

(80,644)

Loan principal payments held by servicer, net

6,628

577

Transfer of senior loans to owned real estate

30,355

34,721

Assumption of other assets and liabilities related to owned real estate

10,727

10,323

Accrued capital expenditures on owned real estate

356

See accompanying notes to consolidated financial statements.

Notes to Consolidated Financial Statements (Unaudited)

‌ORGANIZATION

References herein to "Blackstone Mortgage Trust," "Company," "we," "us" or "our" refer to Blackstone Mortgage Trust, Inc., a Maryland corporation, and its subsidiaries unless the context specifically requires otherwise.

Blackstone Mortgage Trust is a real estate finance company that originates, acquires, and manages senior loans and other debt or credit-oriented investments collateralized by or relating to commercial real estate in North America, Europe, and Australia. Our portfolio is composed primarily of senior loans secured by high-quality, institutional assets located in major markets, and sponsored by experienced, well-capitalized real estate investment owners and operators. We finance our investments in a variety of ways, including borrowing under secured credit facilities, issuing collateralized loan obligations, or CLOs, other securitization transactions, syndicating senior loans and/or participations, and other forms of asset-level financing, depending on our view of the most prudent financing option available for each of our investments. We are externally managed by BXMT Advisors L.L.C., or our Manager, a subsidiary of Blackstone Inc., or Blackstone, and are a real estate investment trust, or REIT, traded on the New York Stock Exchange, or NYSE, under the symbol "BXMT." Our principal executive offices are located at 345 Park Avenue, New York, New York 10154.

We conduct our operations as a REIT for U.S. federal income tax purposes. We generally will not be subject to U.S. federal income taxes on our taxable income to the extent that we annually distribute all of our net taxable income to stockholders and maintain our qualification as a REIT. We also operate our business in a manner that permits us to maintain an exclusion from registration under the Investment Company Act of 1940, as amended. We are organized as a holding company and conduct our business primarily through our various subsidiaries.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The consolidated financial statements, including the notes thereto, are unaudited and exclude some of the disclosures required in audited financial statements. We believe we have made all necessary adjustments, consisting of only normal recurring items, so that the consolidated financial statements are presented fairly and that estimates made in preparing our consolidated financial statements are reasonable and prudent. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. The accompanying unaudited consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 filed with the Securities and Exchange Commission, or the SEC.

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with GAAP, and include, on a consolidated basis, our accounts, the accounts of our wholly-owned subsidiaries, majority-owned subsidiaries, and variable interest entities, or VIEs, of which we are the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation.

Certain reclassifications have been made in the presentation of the prior period statements of operations to combine other income and other expenses to conform to the current period presentation.

Principles of Consolidation

We consolidate all entities that we control through either majority ownership or voting rights. In addition, we consolidate all VIEs of which we are considered the primary beneficiary. VIEs are defined as entities in which equity investors (i) do not have an interest with the characteristics of a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The entity that consolidates a VIE is known as its primary beneficiary and is generally the entity with (i) the power to direct the activities that most significantly affect the VIE's economic performance and (ii) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE. Entities that do not qualify as VIEs are generally considered voting interest entities, or VOEs, and are evaluated for consolidation under the voting interest model. VOEs are consolidated when we control the entity through a majority voting interest or other means.

For consolidated entities, the non-controlling partner's share of the assets, liabilities, and operations of each joint venture is included in non-controlling interests as a component of total equity. The non-controlling partner's interest is generally computed as the joint venture partner's ownership percentage.

When the requirements for consolidation are not met and we have significant influence over the operations of the entity, the investment is accounted for under the equity method of accounting. Investments in unconsolidated entities for which we have not elected the fair value option, or FVO, are initially recorded at cost and subsequently adjusted for our pro-rata share of net income, contributions and distributions. When we elect the FVO, we record our share of the net asset value of the entity and any related unrealized gains and losses.

We review our investments in unconsolidated entities for impairment each quarter or when there is an event or change in circumstances that indicates a decrease in value. If there is a decrease in value due to a series of operating losses or other factors, the investment is evaluated to determine if the loss in value is considered other than temporary. Although a current fair value below the carrying value of the investment is an indicator of impairment, we will only recognize an impairment if the loss in value is determined to be an other than temporary impairment. If an impairment is determined to be other than temporary, we will record an impairment charge sufficient to reduce the investment's carrying value to its fair value, which would result in a new cost basis. This new cost basis will be used for future periods when recording subsequent income or loss and cannot be written up to a higher value as a result of increases in fair value.

In 2017, we entered into a joint venture with Walker & Dunlop Inc., or Walker & Dunlop, to originate, hold, and finance multifamily bridge loans, which we refer to as our Multifamily Joint Venture. Pursuant to the terms of the agreements governing the joint venture, Walker & Dunlop contributed 15% of the venture's equity capital and we contributed 85%. We consolidate our Multifamily Joint Venture as we have a controlling financial interest. The non-controlling interests included on our consolidated balance sheets represent the equity interests in our Multifamily Joint Venture that are owned by Walker & Dunlop. A portion of our Multifamily Joint Venture's consolidated equity and results of operations are allocated to these non-controlling interests based on Walker & Dunlop's pro rata ownership of our Multifamily Joint Venture.

In 2024, we entered into a joint venture with a Blackstone-advised investment vehicle to invest in triple net lease properties, which we refer to as our Net Lease Joint Venture. Our aggregate ownership interest in our Net Lease Joint Venture was 75% as of March 31, 2026. We do not consolidate our Net Lease Joint Venture as we do not have a controlling financial interest. Our investment in our Net Lease Joint Venture is accounted for under the equity method, and is recorded in investment in unconsolidated entities on our consolidated balance sheets, and our pro-rata share of income (loss) is recorded in income (loss) from unconsolidated entities on our consolidated statements of operations.

In 2025, we entered into a joint venture with a Blackstone-advised investment vehicle to acquire portfolios of performing commercial mortgage loans, which we refer to as our Bank Loan Portfolio Joint Venture. During 2025, our Bank Loan Portfolio Joint Venture acquired two portfolios of performing commercial mortgage loans. Our aggregate ownership interest in our Bank Loan Portfolio Joint Venture was 35% as of March 31, 2026. We do not consolidate our Bank Loan Portfolio Joint Venture as we do not have a controlling financial interest. Our investment in our Bank Loan Portfolio Joint Venture is accounted for using the FVO, and is recorded as an investment in unconsolidated entities on our consolidated balance sheets, and our pro-rata share of any unrealized gains and losses is recorded in income (loss) from unconsolidated entities on our consolidated statements of operations.

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may ultimately differ materially from those estimates.

Revenue Recognition

Interest income from our loans receivable portfolio is recognized over the life of each loan using the effective interest method and is recorded on the accrual basis. Recognition of fees, premiums, and discounts associated with these investments is deferred and recorded over the term of the loan as an adjustment to yield. Income accrual is generally suspended for loans at the earlier of the date at which payments become 90 days past due or when, in our opinion, recovery of income and principal becomes doubtful. Interest received is then recorded as income or as a reduction in the amortized cost basis, based on the specific facts and circumstances, until accrual is resumed when the loan becomes contractually

current and performance is demonstrated to be resumed. In addition, for loans we originate, the related origination expenses are deferred and recognized as a reduction to interest income; however, expenses related to loans we acquire are included in general and administrative expenses as incurred.

The sources of revenue from our owned real estate assets, which is included in revenue from owned real estate on our consolidated statements of operations, and the related revenue recognition policies are as follows:

Rental income primarily consists of base rent income arising from tenant leases at our office and multifamily properties. We determine if an arrangement is a lease at contract inception, which is subject to the provisions of ASC 842. Base rent is recognized on a straight-line basis over the life of the lease, including any rent steps or abatement provisions. We begin to recognize revenue upon the acquisition of the related property or when a tenant takes possession of the leased space.

Other operating income primarily consists of income from our hospitality properties and tenant reimbursement income. Revenue from our hospitality properties consists primarily of room revenue and food and beverage revenue. Room revenue is recognized when the related room is occupied and other hospitality revenue is recognized when the service is rendered. Tenant reimbursement income primarily consists of amounts due from tenants for costs related to common area maintenance, real estate taxes, and other recoverable costs included in lease agreements.

We evaluate the collectability of receivables related to rental revenue on an individual lease basis and exercise judgment in assessing collectability considering the length of time a receivable has been outstanding, tenant credit-worthiness, payment history, available information about the financial condition of the tenant, and current economic trends, among other factors. Tenant receivables that are deemed uncollectible are recognized as a reduction to rental revenue.

Cash and Cash Equivalents

Cash and cash equivalents represent cash held in banks and liquid investments with original maturities of three months or less. We may have bank balances in excess of federally insured amounts; however, we deposit our cash and cash equivalents with high credit-quality institutions to minimize credit risk exposure. We have not experienced, and do not expect, any losses on our cash or cash equivalents. As of both March 31, 2026 and December 31, 2025, we had no restricted cash on our consolidated balance sheets.

Loans Receivable

We originate and purchase commercial real estate debt and related instruments generally to be held as long-term investments at amortized cost.

Current Expected Credit Losses Reserve

The current expected credit loss, or CECL, reserve required under the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, Topic 326 "Financial Instruments - Credit Losses," or ASC 326, reflects our current estimate of potential credit losses related to our loans and notes receivable included in our consolidated balance sheets. Changes to the CECL reserves are recognized through net income on our consolidated statements of operations. While ASC 326 does not require any particular method for determining the CECL reserves, it does specify the reserves should be based on relevant information about past events, including historical loss experience, current portfolio and market conditions, and reasonable and supportable forecasts for the duration of each respective loan. In addition, other than a few narrow exceptions, ASC 326 requires that all financial instruments subject to the CECL model have some amount of loss reserve to reflect the principle underlying the CECL model that all loans and similar assets have some inherent risk of loss, regardless of credit quality, subordinate capital, or other mitigating factors.

We estimate our CECL reserves primarily using the Weighted-Average Remaining Maturity, or WARM method, which has been identified as an acceptable loss-rate method for estimating CECL reserves in FASB Staff Q&A Topic 326, No. 1. The WARM method requires us to reference historic loan loss data across a comparable data set and apply such loss rate to each of our loans over their expected remaining term, taking into consideration expected economic conditions over the relevant time frame. We apply the WARM method for the majority of our loan portfolio, which consists of loans that share similar risk characteristics. In certain instances, for loans with unique risk characteristics, we may instead use a probability-weighted model that considers the likelihood of default and expected loss given default for each such individual loan.

Application of the WARM method to estimate CECL reserves requires judgment, including (i) the appropriate historical loan loss reference data, (ii) the expected timing and amount of future loan fundings and repayments, and (iii) the current

credit quality of our portfolio and our expectations of performance and market conditions over the relevant time period. To estimate the historic loan losses relevant to our portfolio, we have augmented our historical loan performance, with market loan loss data licensed from Trepp LLC. This database includes commercial mortgage-backed securities, or CMBS, issued since January 1, 1999 through February 28, 2026. Within this database, we focused our historical loss reference calculations on the most relevant subset of available CMBS data, which we determined based on loan metrics that are most comparable to our loan portfolio including asset type, geography, and origination loan-to-value, or LTV. We believe this CMBS data, which includes month-over-month loan and property performance, is the most relevant, available, and comparable dataset to our portfolio.

Our loans typically include commitments to fund incremental proceeds to our borrowers over the life of the loan. These future funding commitments are also subject to the CECL model. The CECL reserve related to future loan fundings is recorded as a component of other liabilities on our consolidated balance sheets. This CECL reserve is estimated using the same process outlined above for our outstanding loan balances, and changes in this component of the CECL reserve will similarly impact our consolidated net income. For both the funded and unfunded portions of our loans, we consider our internal risk rating of each loan as the primary credit quality indicator underlying our assessment.

The CECL reserves are measured on a collective basis wherever similar risk characteristics exist within a pool of similar assets. We have identified the following pools and measure the reserve for credit losses using the following methods:

U.S. Loans: WARM method that incorporates a subset of historical loss data, expected weighted-average remaining maturity of our loan pool, and an economic view.

Non-U.S. Loans: WARM method that incorporates a subset of historical loss data, expected weighted-average remaining maturity of our loan pool, and an economic view.

Unique Loans: a probability of default and loss given default model, assessed on an individual basis.

Impaired Loans: impairment is indicated when it is deemed probable that we will not be able to collect all amounts due to us pursuant to the contractual terms of the loan. Determining that a loan is impaired requires significant judgment from management and is based on several factors including (i) the underlying collateral performance, (ii) discussions with the borrower, (iii) borrower events of default, and (iv) other facts that impact the borrower's ability to pay the contractual amounts due under the terms of the loan. If a loan is determined to be impaired, we record the impairment as a component of our CECL reserves by applying the practical expedient for collateral dependent loans. The CECL reserves are assessed on an individual basis for these loans by comparing the estimated fair value of the underlying collateral, less costs to sell, to the book value of the respective loan. These valuations require significant judgments, which include assumptions regarding capitalization rates, discount rates, leasing, creditworthiness of major tenants, occupancy rates, availability and cost of financing, exit plan, loan sponsorship, actions of other lenders, and other factors deemed relevant by us. Actual losses, if any, could ultimately differ materially from these estimates. We only expect to charge off the impairment losses in our consolidated financial statements prepared in accordance with GAAP if and when such amounts are deemed non-recoverable. This is generally at the time a loan is repaid or foreclosed, or the underlying collateral assets are otherwise consolidated. However, non-recoverability may also be concluded if, in our determination, it is nearly certain that all amounts due will not be collected.

Contractual Term and Unfunded Loan Commitments

Expected credit losses are estimated over the contractual term of each loan, adjusted for expected repayments. As part of our quarterly review of our loan portfolio, we assess the expected repayment date of each loan, which is used to determine the contractual term for purposes of computing our CECL reserves.

Additionally, the expected credit losses over the contractual period of our loans are subject to the obligation to extend credit through our unfunded loan commitments. The CECL reserve for unfunded loan commitments is adjusted quarterly, as we consider the expected timing of future funding obligations over the estimated life of the loan. The considerations in estimating our CECL reserve for unfunded loan commitments are similar to those used for the related outstanding loans receivable.

Credit Quality Indicator

Our risk rating is our primary credit quality indicator in assessing our current expected credit loss reserve. We perform a quarterly risk review of our portfolio of loans, and assign each loan a risk rating based on a variety of factors, including, without limitation, origination LTV, debt yield, property type, geographic and local market dynamics, physical condition,

cash flow volatility, leasing and tenant profile, loan structure and exit plan, and project sponsorship. Based on a 5-point scale, our loans are rated "l" through "5," from less risk to greater risk, relative to our loan portfolio in the aggregate, which ratings are defined as follows:

- Very Low Risk

- Low Risk

- Medium Risk

- High Risk/Potential for Loss: A loan that has a risk of realizing a principal loss.

- Impaired/Loss Likely: A loan that has a very high risk of realizing a principal loss or has otherwise incurred a principal loss.

Estimation of Economic Conditions

In addition to the WARM method computations and probability-weighted models described above, our CECL reserves are also adjusted to reflect our estimation of the current and future economic conditions that impact the performance of the commercial real estate assets securing our loans. These estimations include unemployment rates, interest rates, expectations of inflation and/or recession, and other macroeconomic factors impacting the likelihood and magnitude of potential credit losses for our loans during their anticipated term. In addition to the CMBS data we have licensed from Trepp LLC, we have also licensed certain macroeconomic financial forecasts to inform our view of the potential future impact that broader economic conditions may have on our loan portfolio's performance. We generally also incorporate information from other sources, including information and opinions available to our Manager, to further inform these estimations. This process requires significant judgments about future events that, while based on the information available to us as of the balance sheet date, are ultimately indeterminate and the actual economic condition impacting our portfolio could vary significantly from the estimates we made as of March 31, 2026.

Owned Real Estate

We may assume legal title, physical possession, or control of the collateral underlying a loan through a foreclosure, a deed-in-lieu of foreclosure transaction, or a loan modification in which we receive an equity interest in and/or control over decision-making at the property, resulting in us consolidating the real estate assets as VIEs. These real estate acquisitions are classified as owned real estate, on our consolidated balance sheet and are initially recognized at fair value on the acquisition date in accordance with the ASC Topic 805, "Business Combinations," or ASC 805.

Upon acquisition of owned real estate assets, we assess the fair value of acquired tangible and intangible assets, which may include land, buildings, tenant improvements, "above-market" and "below-market" leases, acquired in-place leases, other identified intangible assets and assumed liabilities, as applicable, and allocate the fair value to the acquired assets and assumed liabilities. We assess and consider fair value based on estimated cash flow projections that utilize discount and/or capitalization rates that we deem appropriate, as well as other available market information. Estimates of future cash flows are based on a number of factors, including the historical operating results, known and anticipated trends, and market and economic conditions. We capitalize acquisition-related costs associated with asset acquisitions.

Real estate assets held for investment, except for land, are depreciated using the straight-line method over the assets' estimated useful lives of up to 40 years for buildings, 15 years for land improvements, and 10 years for tenant improvements. Renovations and/or replacements that improve or extend the life of the asset are capitalized and depreciated over their estimated useful lives. Lease intangibles are amortized over the remaining term of applicable leases on a straight-line basis. The cost of ordinary repairs and maintenance are expensed as incurred.

Real estate assets held for investment are assessed for impairment on a quarterly basis. If the depreciated cost basis of the asset exceeds the undiscounted cash flows over the remaining holding period, the asset is considered for impairment. The impairment loss is recognized when the carrying value of the real estate assets exceed their fair value. The evaluation of anticipated future cash flows is highly subjective and is based in part on assumptions regarding future occupancy, rental rates, capital requirements and anticipated holding periods that could differ materially from actual results. Refer to Note 4 for further information.

Real estate assets are classified as held for sale in the period when they meet the criteria under ASC Topic 360 "Property, Plant, and Equipment." Once a real estate asset is classified as held for sale, depreciation is suspended and the asset is reported at the lower of its carrying value or fair value less cost to sell. If circumstances arise and we decide not to sell a

real estate asset previously classified as held for sale, the real estate asset is reclassified as held for investment. Upon reclassification, the real estate asset is measured at the lower of (i) its carrying amount prior to classification as held for sale, adjusted for depreciation expense that would have been recognized had the real estate been classified as held for investment, and (ii) its estimated fair value at the time of reclassification.

As of March 31, 2026 and December 31, 2025, we had 13 and 12 owned real estate assets, respectively, that were all classified as held for investment.

Agency Multifamily Lending Partnership

In 2024, we entered into an agreement with M&T Realty Capital Corporation, or MTRCC, a subsidiary of M&T Bank, that allows our borrowers to access multifamily agency financing through MTRCC's Fannie Mae DUS and Freddie Mac Optigo lending platforms, or our Agency Multifamily Lending Partnership. We will receive a portion of origination, servicing, and other fees for loans that we refer to MTRCC for origination under both the Fannie Mae and Freddie Mac programs. Additionally, we will share in losses with MTRCC and Fannie Mae on loans that we refer to MTRCC for origination under the Fannie Mae program.

Revenue Recognition

For loans that we refer to MTRCC for origination under both the Fannie Mae and Freddie Mac programs, we recognize our allocable portion of origination, servicing, and other fees in other income when we have satisfied our performance obligations in accordance with the "Revenue from Contracts with Customers" Topic of the FASB, or ASC 606. Our performance obligations are generally satisfied when the loan is referred by us to MTRCC and subsequently originated and sold under the Fannie Mae and Freddie Mac programs. A portion of the fees recognized, such as servicing fees, are variable and are reevaluated for collectibility on a recurring basis.

Loss-sharing Obligation

Pursuant to our agreement with MTRCC, we are subject to a loss-sharing obligation with respect to MTRCC's obligation to partially guarantee the performance of loans that they originate and sell under the Fannie Mae program. This loss-sharing agreement requires us to fund a fixed amount of cash into a segregated account based on the amount MTRCC is required to fund under the Fannie Mae program, with respect to loans we referred to MTRCC.

In addition, we will recognize a liability for these loss-sharing obligations. This liability will be initially recognized at fair value with a corresponding expense at inception, and it will subsequently be amortized on a straight-line basis over the life of the loss-sharing obligation. This liability is included within other liabilities in our consolidated balance sheets. As of March 31, 2026, our maximum loss-sharing obligation associated with the loans referred by us to MTRCC under the Fannie Mae program was $5.5 million, and we have recorded related liabilities of $32 thousand. There have been no losses incurred as a result of the loss-sharing obligations.

Derivative Financial Instruments

We classify all derivative financial instruments as either other assets or other liabilities on our consolidated balance sheets at fair value.

On the date we enter into a derivative contract, we designate each contract as (i) a hedge of a net investment in a foreign operation, or net investment hedge, (ii) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability, or cash flow hedge, (iii) a hedge of a recognized asset or liability, or fair value hedge, or (iv) a derivative instrument not to be designated as a hedging derivative, or non-designated hedge. For all derivatives other than those designated as non-designated hedges, we formally document our hedge relationships and designation at the contract's inception. This documentation includes the identification of the hedging instruments and the hedged items, its risk management objectives, strategy for undertaking the hedge transaction and our evaluation of the effectiveness of its hedged transaction.

On a quarterly basis, we also formally assess whether the derivative we designated in each hedging relationship is expected to be, and has been, highly effective in offsetting changes in the value or cash flows of the hedged items. If it is determined that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued and the changes in fair value of the instrument are included in net income prospectively. Our net investment hedges are assessed using a method based on changes in spot exchange rates. Gains and losses, representing hedge components excluded from

the assessment of effectiveness, are recognized in interest income on our consolidated statements of operations over the contractual term of our net investment hedges on a systematic and rational basis, as documented at hedge inception in accordance with our accounting policy election. All other changes in the fair value of our derivative instruments that qualify as hedges are reported as a component of accumulated other comprehensive income (loss) on our consolidated financial statements. Deferred gains and losses are reclassified out of accumulated other comprehensive income (loss) and into net income in the same period or periods during which the hedged transaction affects earnings, and are presented in the same line item as the earnings effect of the hedged item. For cash flow hedges, this is typically when the periodic swap settlements are made, while for net investment hedges, this occurs when the hedged item is sold or substantially liquidated. To the extent a derivative does not qualify for hedge accounting and is deemed a non-designated hedge, the changes in its fair value are included in net income concurrently.

Proceeds or payments from periodic settlements of derivative instruments are classified on our consolidated statement of cash flows in the same section as the underlying hedged item.

Debt Securities

We have elected the FVO for our debt securities, which are included in other assets on our consolidated balance sheets. Refer to Note 6 for further information.

Secured Debt and Asset-Specific Debt

We record investments financed with secured debt or asset-specific debt as separate assets and the related borrowings under any secured debt or asset-specific debt are recorded as separate liabilities on our consolidated balance sheets. Interest income earned on the investments and interest expense incurred on the secured debt or asset-specific debt are reported separately on our consolidated statements of operations.

Term Loans

We record our term loans as liabilities on our consolidated balance sheets. Where applicable, any issue discount or transaction expenses are deferred and amortized through the maturity date of the term loans as additional non-cash interest expense.

Senior Secured Notes

We record our senior secured notes as liabilities on our consolidated balance sheets. Where applicable, any issue discount or transaction expenses are deferred and amortized through the maturity date of the senior secured notes as additional non-cash interest expense.

Convertible Notes

Convertible note proceeds, unless issued with a substantial premium or an embedded conversion feature, are classified as debt. Additionally, shares issuable under our convertible notes are included in diluted earnings per share in our consolidated financial statements, if the effect is dilutive, using the if-converted method, regardless of settlement intent. Where applicable, any issue discount or transaction expenses are deferred and amortized through the maturity date of the convertible notes as additional non-cash interest expense.

Deferred Financing Costs

The deferred financing costs that are included as a reduction in the net book value of the related liability on our consolidated balance sheets include issuance and other costs related to our debt obligations. These costs are amortized as interest expense using the effective interest method over the life of the related obligations.

Underwriting Commissions and Offering Costs

Underwriting commissions and offering costs incurred in connection with common stock offerings are reflected as a reduction of additional paid-in capital. Costs incurred that are not directly associated with the completion of a common stock offering are expensed when incurred.

Fair Value Measurements

The "Fair Value Measurements and Disclosures" Topic of the FASB, or ASC 820, defines fair value, establishes a framework for measuring fair value, and requires certain disclosures about fair value measurements under GAAP. Specifically, this guidance defines fair value based on exit price, or the price that would be received upon the sale of an asset or the transfer of a liability in an orderly transaction between market participants at the measurement date.

ASC 820 also establishes a fair value hierarchy that prioritizes and ranks the level of market price observability used in measuring financial instruments. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument, and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination, as follows:

Level 1: Generally includes only unadjusted quoted prices that are available in active markets for identical financial instruments as of the reporting date.

Level 2: Pricing inputs include quoted prices in active markets for similar instruments, quoted prices in less active or inactive markets for identical or similar instruments where multiple price quotes can be obtained, and other observable inputs, such as interest rates, yield curves, credit risks, and default rates.

Level 3: Pricing inputs are unobservable for the financial instruments and include situations where there is little, if any, market activity for the financial instrument. These inputs require significant judgment or estimation by management of third parties when determining fair value and generally represent anything that does not meet the criteria of Levels 1 and 2.

Certain of our other assets are reported at fair value, as of quarter-end, either (i) on a recurring basis or (ii) on a nonrecurring basis, as a result of impairment or other events. Our assets that are recorded at fair value are discussed further in Note 18. We generally value our assets recorded at fair value by either (i) discounting expected cash flows based on assumptions regarding the collection of principal and interest and estimated market rates, or (ii) obtaining assessments from third parties. For collateral-dependent loans that are identified as impaired, we measure impairment by comparing our estimation of the fair value of the underlying collateral, less costs to sell, to the book value of the respective loan. These valuations require significant judgments, which include assumptions regarding capitalization rates, discount rates, leasing, creditworthiness of major tenants, occupancy rates, availability and cost of financing, exit plan, loan sponsorship, actions of other lenders, and other factors.

We have elected the FVO for one of our investments in an unconsolidated entity, our Bank Loan Portfolio Joint Venture, and therefore report this investment at fair value. Given the fair value of this investment is not readily determinable, the net asset value of the entity is used as a practical expedient.

As of March 31, 2026, we had an aggregate $84.9 million asset-specific CECL reserve related to seven of our loans receivable with an aggregate amortized cost basis of $372.2 million, net of cost-recovery proceeds. The CECL reserve was recorded based on our estimation of the fair value of the loans' aggregate underlying collateral as of March 31, 2026. These loans receivable are therefore measured at fair value on a nonrecurring basis using significant unobservable inputs, and are classified as Level 3 assets in the fair value hierarchy. We estimated the fair value of the collateral underlying the loans receivable by considering a variety of inputs including property performance, market data, and comparable sales, as applicable. The significant unobservable inputs employed include the exit capitalization rate assumption used to forecast the future sale price of the underlying real estate collateral, which ranged from 4.9% to 8.0%, and the unlevered discount rate assumption, which ranged from 8.0% to 15.0%.

During the three months ended March 31, 2026, we acquired legal title to one owned real estate asset through a foreclosure transaction. At the time of acquisition, we determined the fair value of the real estate asset based on a variety of inputs, as applicable, including, but not limited to, estimated cash flow projections, leasing assumptions, required capital expenditures, market data, and comparable sales. The owned real estate asset was measured at fair value on a nonrecurring basis using significant unobservable inputs and is classified as a Level 3 asset in the fair value hierarchy. The significant unobservable inputs employed include (i) the exit capitalization rate assumption used to forecast the future sale price of the asset, which was 6.5%, and (ii) the unlevered discount rate assumption, which was 11.0%. Refer to Notes 4 and 18 for further information.

We are also required by GAAP to disclose fair value information about financial instruments, which are not otherwise reported at fair value in our consolidated balance sheet, to the extent it is practicable to estimate a fair value for those instruments. These disclosure requirements exclude certain financial instruments and all non-financial instruments.

The following methods and assumptions are used to estimate the fair value of each class of financial instruments, for which it is practicable to estimate that value:

Cash and cash equivalents: The carrying amount of cash and cash equivalents approximates fair value.

Loans receivable, net: The fair values of these loans were estimated using a discounted cash flow methodology, taking into consideration various factors including capitalization rates, discount rates, leasing, credit worthiness of major tenants, occupancy rates, availability and cost of financing, exit plan, loan sponsorship, actions of other lenders, and other factors.

Derivative financial instruments: The fair value of our foreign currency and interest rate contracts was estimated using advice from a third-party derivative specialist, based on contractual cash flows and observable inputs comprising foreign currency rates and credit spreads.

Secured debt, net and other secured debt: The fair value of these instruments was estimated based on the rate at which a similar credit facility would currently be priced. Other secured debt is included in other liabilities in our consolidated balance sheets.

Securitized debt obligations, net: The fair value of these instruments was estimated by utilizing third-party pricing service providers. In determining the value of a particular investment, pricing service providers may use broker-dealer quotations, reported trades, or valuation estimates from their internal pricing models to determine the reported price.

Asset-specific debt, net: The fair value of these instruments was estimated based on the rate at which a similar agreement would currently be priced.

Loan participations sold, net: The fair value of these instruments was estimated based on the value of the related loan receivable asset.

Term loans, net: The fair value of these instruments was estimated by utilizing third-party pricing service providers. In determining the value of a particular investment, pricing service providers may use broker-dealer quotations, reported trades, or valuation estimates from their internal pricing models to determine the reported price.

Senior secured notes, net: The fair value of these instruments was estimated by utilizing third-party pricing service providers. In determining the value of a particular investment, pricing service providers may use broker-dealer quotations, reported trades, or valuation estimates from their internal pricing models to determine the reported price.

Convertible notes, net: Each series of the convertible notes is actively traded and their fair values were obtained using quoted market prices.

Income Taxes

Our financial results generally do not reflect provisions for current or deferred income taxes on our REIT taxable income. We believe that we operate in a manner that will continue to allow us to be taxed as a REIT and, as a result, we generally do not expect to pay substantial corporate level taxes other than those payable by our taxable REIT subsidiaries. If we were to fail to meet these requirements, we may be subject to federal, state, and local income tax on current and past income, and penalties. Refer to Note 16 for further information.

Stock-Based Compensation

Our stock-based compensation consists of awards issued to our Manager, certain individuals employed by an affiliate of our Manager, and certain members of our board of directors that vest over the life of the awards, as well as deferred stock units issued to certain members of our board of directors. Stock-based compensation expense is recognized for these awards in net income on a variable basis over the applicable vesting period of the awards, based on the value of our class A common stock. Refer to Note 17 for further information.

Earnings per Share

Basic earnings per share, or Basic EPS, is computed in accordance with the two-class method and is based on (i) the net earnings allocable to our class A common stock, including restricted class A common stock and deferred stock units, divided by (ii) the weighted-average number of shares of our class A common stock, including restricted class A common stock and deferred stock units outstanding during the period. Our restricted class A common stock is considered a participating security, as defined by GAAP, and has been included in our Basic EPS under the two-class method as these restricted shares have the same rights as our other shares of class A common stock, including participating in any gains or losses.

Diluted earnings per share, or Diluted EPS, is determined using the if-converted method, and is based on (i) the net earnings, adjusted for interest expense incurred on our convertible notes during the relevant period, net of incentive fees, allocable to our class A common stock, including restricted class A common stock and deferred stock units, divided by (ii) the weighted-average number of shares of our class A common stock, including restricted class A common stock, deferred stock units, and shares of class A common stock issuable under our convertible notes. Refer to Note 14 for further discussion of earnings per share.

Foreign Currency

In the normal course of business, we enter into transactions not denominated in United States, or U.S., dollars. Foreign exchange gains and losses arising on such transactions are recorded as a gain or loss in our consolidated statements of operations. In addition, we consolidate entities that have a non-U.S. dollar functional currency. Non-U.S. dollar-denominated assets and liabilities are translated to U.S. dollars at the exchange rate prevailing at the reporting date and income, expenses, gains, and losses are translated at the average exchange rate over the applicable period. Cumulative translation adjustments arising from the translation of non-U.S. dollar-denominated subsidiaries are recorded in other comprehensive income (loss).

Recent Accounting Pronouncements

In December 2025, the FASB issued Accounting Standards Update, or ASU, 2025-11, "Interim Reporting (Topic 270): Narrow Scope Improvements," which amends the guidance in ASC 270, Interim Reporting. The update enhances interim disclosure requirements by clarifying the information that must be presented in quarterly periods, including improved transparency regarding significant events, accounting policy updates, and material developments that occur between annual reporting dates. ASU 2025-11 also aligns certain interim reporting requirements more closely with annual disclosure objectives to promote consistency and comparability. The amendments are effective for interim periods beginning after December 15, 2027, and early adoption is permitted. We have not early adopted ASU 2025-11 and do not expect the adoption of ASU 2025-11 to have a material impact on our consolidated financial statements.

In December 2025, the FASB issued ASU 2025-09, "Derivatives and Hedging (Topic 815): Hedge Accounting Improvements," which amends the guidance in ASC 815, Derivatives and Hedging. The update refines certain hedge accounting requirements, including clarifications to the designation and documentation criteria for hedge relationships, improvements to the assessment of hedge effectiveness, and enhanced disclosures intended to provide greater transparency into an entity's risk management activities involving derivatives. ASU 2025-09 is effective for annual periods beginning after December 15, 2026, including interim periods within those annual periods, and early adoption is permitted. We have not early adopted ASU 2025-09 and do not expect the adoption of ASU 2025-09 to have a material impact on our consolidated financial statements.

In December 2025, the FASB issued ASU 2025-08, "Financial Instruments-Credit Losses (Topic 326): Purchased Loans," which clarifies the application of the CECL model to purchased loans, including purchased credit-deteriorated loans, and enhances related disclosure requirements. ASU 2025-08 is effective for annual reporting periods beginning after December 15, 2026, including interim periods within those annual periods. Early adoption is permitted. We have not early adopted ASU 2025-08 and do not expect the adoption of ASU 2025-08 to have a material impact on our consolidated financial statements.

In July 2025, the FASB issued ASU 2025-05, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets," which amends the guidance in ASC 326, Financial Instruments-Credit Losses. This update provides a practical expedient related to the estimation of expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606. The amendment notes that in developing reasonable and supportable forecasts as part of estimating expected credit losses, all entities may

elect a practical expedient that assumes that current conditions as of the balance sheet date do not change for the remaining life of the asset. ASU 2025-05 is effective for annual periods beginning after December 15, 2025, including interim periods within those annual periods, and early adoption is permitted. The adoption of ASU 2025-05 in 2026 did not have a material impact on our consolidated financial statements. We recognize revenue under ASC 606 pursuant to our Agency Multifamily Lending Partnership and income from our hospitality owned real estate assets.

In May 2025, the FASB issued ASU 2025-03, "Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity," which amends the guidance in ASC 805, Business Combinations. This update clarifies the determination of the accounting acquirer in business combinations that are primarily effected through the exchange of equity interests and involve the acquisition of a VIE. Specifically, entities are now required to consider the factors outlined in ASC 805-10-55-12 through 55-15 when determining the accounting acquirer, rather than defaulting to the primary beneficiary of the VIE as the accounting acquirer. ASU 2025-03 is effective for annual periods beginning after December 15, 2026, including interim periods within those annual periods, and early adoption is permitted. We have not early adopted ASU 2025-03 and do not expect the adoption of ASU 2025-03 to have a material impact on our consolidated financial statements.

In November 2024, the FASB issued ASU 2024-04 "Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments," or ASU 2024-04. ASU 2024-04 clarifies the accounting treatment for settlement of a convertible debt instrument as an induced conversion. ASU 2024-04 is effective on a prospective basis, with the option for retrospective application, for fiscal years beginning after December 15, 2025. The adoption of ASU 2024-04 in 2026 did not have a material impact on our consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03 "Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses," or ASU 2024-03. ASU 2024-03 requires disclosures in the notes to the financial statements on specified information about certain costs and expenses for each interim and annual reporting period. ASU 2024-03 is effective on either a prospective basis, with the option for retrospective application, for annual periods beginning after December 15, 2026, and for interim periods within fiscal years beginning after December 15, 2027, and early adoption is permitted. We have not early adopted ASU 2024-03 and do not expect the adoption of ASU 2024-03 to have a material impact on our consolidated financial statements.

LOANS RECEIVABLE, NET

The following table details overall statistics for our loans receivable portfolio ($ in thousands):

March 31, 2026

December 31, 2025

Number of loans

130

131

Principal balance

$ 17,639,430

$ 18,154,768

Net book value

$ 17,266,346

$ 17,784,694

Unfunded loan commitments(1)

$ 1,168,941

$ 1,185,004

Weighted-average cash coupon(2)

+ 3.23 %

+ 3.19 %

Weighted-average all-in yield(2)

+ 3.46 %

+ 3.39 %

Weighted-average maximum maturity (years)(3)

2.4

2.5

Unfunded commitments will primarily be funded to finance our borrowers' construction or development of real estate-related assets, capital improvements of existing assets, or lease-related expenditures. These commitments will generally be funded over the term of each loan, subject in certain cases to an expiration date.

The weighted-average cash coupon and all-in yield are expressed as a spread over the relevant floating benchmark rates, which include SOFR, SONIA, EURIBOR, CORRA, and other indices, as applicable to each loan. As of March 31, 2026, 97% of our loans by principal balance earned a floating rate of interest, primarily indexed to SOFR. The remaining 3% of our loans by principal balance earned a fixed rate of interest. As of December 31, 2025, 97% of our loans by principal balance earned a floating rate of interest, primarily indexed to SOFR. The remaining 3% of our loans by principal balance earned a fixed rate of interest. In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, and purchase discounts, as well as the accrual of exit fees. Excludes loans accounted for under the cost-recovery and nonaccrual methods, if any.

Maximum maturity assumes all extension options are exercised by the borrower, however our loans may be repaid prior to such date. Excludes loans accounted for under the cost-recovery and nonaccrual methods, if any. As of March 31, 2026, 41% of our loans by principal balance were subject to yield maintenance or other prepayment restrictions and 59% were open to repayment by the borrower without penalty. As of December 31, 2025, 40% of our loans by principal balance were subject to yield maintenance or other prepayment restrictions and 60% were open to repayment by the borrower without penalty.

The following table details the index rate floors for our loans receivable portfolio as of March 31, 2026 ($ in thousands):

Loans Receivable Principal Balance

Index Rate Floors USD Non-USD(1) Total

Fixed Rate

$ 397,337

$ 134,916

$ 532,253

0.00% or no floor(2)

731,463

4,614,027

5,345,490

0.01% to 1.00% floor

1,636,260

1,152,196

2,788,456

1.01% to 2.00% floor

929,990

1,711,218

2,641,208

2.01% to 3.00% floor

4,764,518

364,885

5,129,403

3.01% or more floor

951,506

251,114

1,202,620

Total(3)

$ 9,411,074

$ 8,228,356

$ 17,639,430

Includes Euro, British Pound Sterling, Swedish Krona, Australian Dollar, and Canadian Dollar currencies.

Includes all impaired loans.

As of March 31, 2026, the weighted-average index rate floor of our floating-rate loans receivable principal balance was 1.40%. Excluding 0.0% index rate floors and loans with no floor, the weighted-average index rate floor was 2.06%.

Activity relating to our loans receivable portfolio was as follows ($ in thousands):

Principal Balance

Deferred Fees / Other Items(1)

Net Book Value

Loans Receivable, as of December 31, 2025

$ 18,154,768

$ (85,634)

$ 18,069,134

Loan fundings

290,826

Loan repayments, sales, and cost-recovery proceeds

(630,933)

(859)

(631,792)

Charge-offs

(46,957)

506

(46,451)

Transfer to owned real estate

(30,355)

Transfer to other assets, net(2)

(10,727)

Payment-in-kind interest, net of interest received

5,106

Unrealized (loss) gain on foreign currency translation

(92,298)

(92,226)

Deferred fees and other items

(11,009)

Amortization of fees and other items

15,430

Loans Receivable, as of March 31, 2026

$ 17,639,430

$ (81,494)

$ 17,557,936

CECL reserve

(291,590)

Loans Receivable, net, as of March 31, 2026

$ 17,266,346

Other items primarily consist of purchase and sale discounts or premiums, exit fees, deferred origination expenses, and cost-recovery proceeds.

This amount relates to intangible and other assets recorded in connection with a loan that was transferred to owned real estate, net of any liabilities recorded upon acquisition. See Note 6 for further information.

The tables below detail the property type and geographic distribution of the properties securing the loans in our loans receivable portfolio ($ in thousands):

March 31, 2026

Property Type

Number of Loans

Net Book Value

Net Loan Exposure(1)

Net Loan Exposure Percentage of Portfolio

Multifamily

$ 4,468,743

$ 4,288,075

26%

Office

4,557,654

4,220,106

Industrial

4,454,201

4,157,570

Hospitality

1,736,982

1,659,965

Retail

687,182

606,901

Self-storage

650,571

485,715

Life Sciences / Studio

284,571

267,040

Other

718,032

681,112

Total loans receivable

130

$ 17,557,936

$ 16,366,484

100%

CECL reserve

(291,590)

Loans receivable, net

$ 17,266,346

Geographic Location

Number of Loans

Net Book Value

Net Loan Exposure(1)

Net Loan Exposure Percentage of Portfolio

United States

Sunbelt

$ 4,508,223

$ 3,722,978

23%

West

1,840,712

1,776,895

Northeast

1,858,340

1,759,244

Midwest

625,821

612,984

Northwest

461,906

458,229

Subtotal

9,295,002

8,330,330

International

United Kingdom

3,531,479

3,520,741

Australia

1,157,051

1,161,942

Ireland

1,125,056

1,118,110

Spain

553,729

508,040

Sweden

488,587

487,427

Canada

449,123

284,674

Other Europe

896,738

894,462

Other International

61,171

60,758

Subtotal

8,262,934

8,036,154

Total loans receivable

130

$ 17,557,936

$ 16,366,484

100%

CECL reserve

(291,590)

Loans receivable, net

$ 17,266,346

December 31, 2025

Property Type

Number of Loans

Net Book Value

Net Loan Exposure(1)

Net Loan Exposure Percentage of Portfolio

Office

$ 4,879,422

$ 4,556,980

27%

Multifamily

4,457,767

4,305,534

Industrial

4,458,487

4,114,141

Hospitality

1,940,693

1,827,133

Retail

674,612

596,204

Self-storage

659,515

492,376

Life Sciences/Studio

284,079

277,373

Other

714,559

676,293

Total loans receivable

131

$ 18,069,134

$ 16,846,034

100%

CECL reserve

(284,440)

Loans receivable, net

$ 17,784,694

Geographic Location

Number of Loans

Net Book Value

Net Loan Exposure(1)

Net Loan Exposure Percentage of Portfolio

United States

Sunbelt

$ 4,715,039

$ 3,918,928

23%

West

1,963,032

1,872,531

Northeast

1,893,877

1,800,387

Midwest

619,726

609,433

Northwest

457,215

454,507

Subtotal

9,648,889

8,655,786

International

United Kingdom

3,595,424

3,582,983

Ireland

1,141,770

1,135,749

Australia

1,104,765

1,110,648

Spain

684,109

638,112

Sweden

502,124

500,917

Canada

455,407

288,504

Other Europe

875,579

872,527

Other International

61,067

60,808

Subtotal

8,420,245

8,190,248

Total loans receivable

131

$ 18,069,134

$ 16,846,034

100%

CECL reserve

(284,440)

Loans receivable, net

$ 17,784,694

Net loan exposure reflects the amount of each loan that is subject to risk of credit loss to us as of December 31, 2025, which is our principal balance net of (i) $999.8 million of asset-specific debt, (ii) $24.5 million of cost-recovery proceeds, and (iii) our total loans receivable CECL reserve of $284.4 million. See Note 2 for further discussion of loan participations sold. Our asset-specific debt is structurally non-recourse and term-matched to the corresponding collateral loans.

Loan Risk Ratings

As further described in Note 2, we evaluate our loan portfolio on a quarterly basis. In conjunction with our quarterly loan portfolio review, we assess the risk factors of each loan, and assign a risk rating based on several factors. Factors considered in the assessment include, but are not limited to, risk of loss, origination LTV, debt yield, collateral performance, structure, exit plan, and sponsorship. Loans are rated "1" (less risk) through "5" (greater risk), which ratings are defined in Note 2.

The following tables allocate the net book value and net loan exposure balances based on our internal risk ratings ($ in thousands):

March 31, 2026

Risk Rating

Number of Loans

Net Book Value

Net Loan Exposure(1)

114,420

114,095

2,948,977

2,778,681

11,478,398

10,646,589

2,643,985

2,541,297

372,156

285,822

Total loans receivable

130

17,557,936

16,366,484

CECL reserve

(291,590)

Loans receivable, net

17,266,346

December 31, 2025

Risk Rating

Number of Loans

Net Book Value

Net Loan Exposure(1)

303,971

302,564

2,875,870

2,704,222

11,907,947

11,045,913

2,806,758

2,705,706

174,588

87,629

Total loans receivable

131

18,069,134

16,846,034

CECL reserve

(284,440)

Loans receivable, net

17,784,694

Net loan exposure reflects the amount of each loan that is subject to risk of credit loss to us as of March 31, 2026, which is our principal balance net of (i) $961.1 million of asset-specific debt, (ii) $20.3 million of cost-recovery proceeds, and (iii) our total loans receivable CECL reserve of $291.6 million. Our net loan exposure as of December 31, 2025 is our principal balance net of (i) $999.8 million of asset-specific debt, (ii) $24.5 million of cost-recovery proceeds, and (iii) our total loans receivable CECL reserve of $284.4 million. Our asset-specific debt is structurally non-recourse and term-matched to the corresponding collateral loans.

Our loan portfolio had a weighted-average risk rating of 3.0, based on net loan exposure, as of both March 31, 2026 and December 31, 2025.

Current Expected Credit Loss Reserve

The CECL reserves required under GAAP reflect our current estimate of potential credit losses related to the loans included in our consolidated balance sheets. Refer to Note 2 for further discussion of our CECL reserves. The following table presents the activity in our loans receivable CECL reserve by investment pool for the three months ended March 31, 2026 and 2025 ($ in thousands):

U.S. Loans(1)

Non-U.S.

Loans

Unique

Loans

Impaired

Loans

Total

Loans Receivable, Net

CECL reserves as of December 31, 2025

$ 101,180

$ 45,470

$ 50,465

$ 87,325

$ 284,440

Increase (decrease) in CECL reserves

15,673

(6,305)

182

44,051

53,601

Charge-offs of CECL reserves

(46,451)

CECL reserves as of March 31, 2026

$ 116,853

$ 39,165

$ 50,647

$ 84,925

$ 291,590

CECL reserves as of December 31, 2024

$ 80,057

$ 26,141

$ 47,087

$ 580,651

$ 733,936

Increase in CECL reserves

17,604

13,796

1,477

16,552

49,429

Charge-offs of CECL reserves

(41,824)

CECL reserves as of March 31, 2025

$ 97,661

$ 39,937

$ 48,564

$ 555,379

$ 741,541

Includes one U.S. dollar-denominated loan that is located in Bermuda.

During the three months ended March 31, 2026, we recorded a net increase of $7.2 million in the CECL reserves against our loans receivable portfolio, primarily driven by a $9.6 million increase in our general CECL reserve partially offset by a

$2.4 million decrease in our asset-specific CECL reserve, bringing our total loans receivable CECL reserves to

$291.6 million as of March 31, 2026. The increase in our general CECL reserve was primarily driven by new loan originations. The decrease in our asset-specific reserve was driven by charge-offs of $46.5 million primarily related to the resolution of one previously impaired loan as a result of our acquisition of title through a foreclosure of a hospitality collateral property located in San Francisco, CA, which is now included on our consolidated balance sheet as an owned real estate asset. This was largely offset by additions to our asset-specific CECL reserve related to two additional loans with a total amortized cost basis of $284.8 million that were impaired during the three months ended March 31, 2026. The income accrual was suspended on the two newly impaired loans, as the recovery of income and principal was doubtful. During the three months ended March 31, 2026, we recorded $1.4 million of interest income on these loans.

As of March 31, 2026, we had an aggregate $84.9 million asset-specific CECL reserve related to seven of our loans receivable, with a total amortized cost basis of $372.2 million, net of cost-recovery proceeds. Impairments are each determined individually as a result of changes in the specific credit quality factors for each such loan. These factors included, among others, (i) the underlying collateral performance, (ii) discussions with the borrower, (iii) borrower events of default, and (iv) other facts that impact the borrower's ability to pay the contractual amounts due under the terms of the loan. This asset-specific CECL reserve was recorded based on our estimation of the fair value of each loan's underlying collateral as of March 31, 2026.

No income was recorded on our impaired loans subsequent to determining that they were impaired. During the three months ended March 31, 2026, we received an aggregate $0.5 million of cash proceeds from such loans that were applied as a reduction to the amortized cost basis of each respective loan.

As of March 31, 2026, two of our performing loans with an aggregate amortized cost basis of $156.7 million were in default. With respect to one of these loans, the default was a technical default as a result of the non-payment of an extension fee, the loan was not past its maturity date and was current on its interest payments. The other loan was in payment default and was less than 90 days past due on its interest payment. Both of these loans had a risk rating of "4." All other borrowers under performing loans were in compliance with the applicable contractual terms of each respective loan, including any required payment of interest. Refer to Note 2 for further discussion of our policies on revenue recognition and our CECL reserves.

Our primary credit quality indicator is our risk ratings, which are further discussed above. The following tables present the net book value of our loan portfolio as of March 31, 2026 and December 31, 2025, respectively, by year of origination, investment pool, and risk rating ($ in thousands):

Net Book Value of Loans Receivable by Year of Origination(1)

of March 31, 2026

Risk Rating

2026

2025

2024

2023 2022

Prior

Total

U.S. loans

$ -

$ 60,519

$ -

$ - $ -

$ 53,901

$ 114,420

84,921

61,171

- 164,646

580,595

891,333

180,912

1,884,547

275,807

- 1,623,740

2,240,857

6,205,863

- 190,268

1,595,708

1,785,976

- -

Total U.S. loans

$ 180,912

$ 2,029,987

$ 336,978

$ - $ 1,978,654

$ 4,471,061

$ 8,997,592

Non-U.S. loans

$ -

$ - $ -

$ -

716,767

- 469,429

871,448

2,057,644

32,982

2,377,080

- -

1,664,166

4,074,228

- -

360,357

- -

Total Non-U.S. loans

$ 32,982

$ 3,093,847

$ -

$ - $ 469,429

$ 2,895,971

$ 6,492,229

Unique loans

$ -

$ - $ -

$ -

- -

- 908,375

289,932

1,198,307

- -

497,652

- -

Total unique loans

$ -

$ - $ 908,375

$ 787,584

$ 1,695,959

Impaired loans

$ -

$ - $ -

$ -

- -

- 179,285

192,871

372,156

Total impaired loans

$ -

$ - $ 179,285

$ 192,871

$ 372,156

Total loans receivable

$ -

$ 60,519

$ -

$ - $ -

$ 53,901

$ 114,420

801,688

61,171

- 634,075

1,452,043

2,948,977

213,894

4,261,627

275,807

- 2,532,115

4,194,955

11,478,398

- 190,268

2,453,717

2,643,985

- 179,285

192,871

372,156

Total loans receivable

$ 213,894

$ 5,123,834

$ 336,978

$ - $ 3,535,743

$ 8,347,487

$ 17,557,936

CECL reserve

(291,590)

Loans receivable, net

$ 17,266,346

Gross charge-offs(2) - - - - - (46,451) $ (46,451)

Date loan was originated or acquired by us. Origination dates are subsequently updated to reflect material loan modifications.

Represents charge-offs by year of origination during the three months ended March 31, 2026.

Net Book Value of Loans Receivable by Year of Origination(1)

As of December 31,

2025

Risk Rating

2025

2024

2023 2022

2021

Prior

Total

U.S. loans

$ -

$ - $ 151,674

$ 98,329

$ 53,968

$ 303,971

140,513

61,068

- 105,447

611,866

170,012

1,088,906

1,870,372

274,866

- 1,714,538

1,928,118

456,963

6,244,857

- 367,804

582,317

961,346

1,911,467

- -

Total U.S. loans

$ 2,010,885

$ 335,934

$ - $ 2,339,463

$ 3,220,630

$ 1,642,289

$ 9,549,201

Non-U.S. loans

$ -

$ - $ -

$ -

652,289

- 480,619

654,056

1,786,964

2,465,305

- -

941,669

1,084,707

4,491,681

- -

366,658

- -

Total Non-U.S. loans

$ 3,117,594

$ -

$ - $ 480,619

$ 1,595,725

$ 1,451,365

$ 6,645,303

Unique loans

$ -

$ - $ -

$ -

- -

- 877,908

293,501

1,171,409

- -

528,633

- -

Total unique loans

$ -

$ - $ 877,908

$ -

$ 822,134

$ 1,700,042

Impaired loans

$ -

$ - $ -

$ -

- -

31,700

142,888

174,588

Total impaired loans

$ -

$ - $ -

$ 31,700

$ 142,888

$ 174,588

Total loans receivable

$ -

$ - $ 151,674

$ 98,329

$ 53,968

$ 303,971

792,802

61,068

- 586,066

1,265,922

170,012

2,875,870

4,335,677

$ 274,866

- 2,592,446

2,869,787

1,835,171

11,907,947

- 367,804

582,317

1,856,637

2,806,758

- -

31,700

142,888

174,588

Total loans receivable

$ 5,128,479

$ 335,934

$ - $ 3,697,990

$ 4,848,055

$ 4,058,676

$ 18,069,134

CECL reserve

(284,440)

Loans receivable, net

$ 17,784,694

Gross charge-offs(2) - - - (54,404) (214,796) (286,916) $ (556,116)

Date loan was originated or acquired by us. Origination dates are subsequently updated to reflect material loan modifications.

Represents charge-offs by year of origination during the year ended December 31, 2025.

Loan Modifications Pursuant to ASC 326

During the twelve months ended March 31, 2026, we entered into four loan modifications that require disclosure pursuant to ASC 326. Three of these loans were collateralized by office assets and one was collateralized by a life sciences/studio asset.

One of the loan modifications included a term extension combined with an other-than-insignificant payment delay. This loan modification had a term extension of 3.8 years, the loan was bifurcated into a separate senior loan and subordinate loan, and the borrower paid a $1.7 million fee upon closing of the modification. We are accruing interest on the senior loan, which is paying interest current, and deferring interest on the subordinate loan that is paying interest in-kind. As of March 31, 2026, the amortized cost basis of this loan was $242.3 million, or 1.4% of our aggregate loans receivable portfolio, with no unfunded commitments. This loan was in compliance with its modified contractual terms as of March 31, 2026.

The other three loan modifications included term extensions combined with other-than-insignificant payment delays and interest rate reductions. The first loan modification included a term extension of one year, the interest rate on the senior loan decreased by 2.43%, the borrower repaid $25.0 million upon closing of the modification, and the loan was bifurcated into a separate senior loan and subordinate loan. The senior loan is paying interest partially current, and partially in-kind, while the subordinate loan is paying interest in-kind. We are accruing all of the interest on the senior loan and deferring interest on the subordinate loan. The second loan modification included a term extension of 4.3 years, the interest rate decreased by 3.56%, and the loan was bifurcated into a separate senior loan and subordinate loan. We are accruing all of the interest on the senior loan that is paying current, and deferring interest on the subordinate loan, which is paid-in-kind. The third loan modification included a term extension of 4.3 years, the interest rate decreased by 4.19%, the borrower repaid $12.7 million upon closing of the modification, and the loan was bifurcated into a separate senior loan and subordinate loan. We are accruing all of the interest on the senior loan that is paying current and deferring interest on the subordinate loan, which is paid-in-kind. As of March 31, 2026, the aggregate amortized cost basis of these loans was

$386.1 million, or 2.2% of our aggregate loans receivable portfolio, with an aggregate $67.7 million of unfunded commitments. These loans were in compliance with their modified contractual terms as of March 31, 2026.

All four of these loans had a risk rating of "5" at the time of modification. In aggregate, these modifications resulted in the bifurcation of all four loans into separate senior and subordinate loans, or eight loans in aggregate. As of March 31, 2026, three of the newly bifurcated senior loans had a risk rating of "4," and one had a risk rating of "3." The four newly bifurcated subordinate loans all had a risk rating of "5," as collection of amounts due under the loan terms was doubtful.

Loans with a risk rating of "3" and "4" are included in the determination of our general CECL reserve and loans with a risk rating of "5" are evaluated individually for an asset-specific CECL reserve. Loan modifications that allow the option to pay interest in-kind increase our potential economics and the size of our secured claim, as interest is capitalized and added to the outstanding principal balance for applicable loans. As of March 31, 2026, no income was recorded on our loans subsequent to determining that they were impaired and risk rated "5."

OWNED REAL ESTATE, NET

As of March 31, 2026 and December 31, 2025, we had 13 and 12 owned real estate assets, respectively. During the three months ended March 31, 2026, we acquired one owned real estate asset through a foreclosure transaction with an acquisition price of $41.1 million. We allocated $22.8 million to land and land improvements, $7.6 million to building and building improvements, and $10.7 million to other components of the purchase price, including cash held in reserves at the time of acquisition. There were no acquired intangible assets. We charged off $46.8 million of CECL reserves relating to the loan that had previously been secured by this asset, as the loan's carrying value of $87.9 million at the time of the foreclosure exceeded the acquisition date fair value noted above. See Note 2 for further discussion of owned real estate assets.

Acquisitions

The acquisition of one owned real estate asset during the three months ended March 31, 2026 was accounted for as an asset acquisition under ASC 805, and we recognized this property as an owned real estate asset held for investment. The following table presents the owned real estate asset that was acquired during the three months ended March 31, 2026 ($ in thousands):

Acquisition Date

Location

Property Type

Acquisition Date Fair Value

March 2026

San Francisco, CA

Hospitality

$ 41,082

Dispositions

During the three months ended March 31, 2026, we completed a partial sale of one owned real estate asset, a multifamily property located in San Antonio, TX. The carrying value of the asset at the time of disposition was $15.3 million, and we received net cash proceeds of $15.1 million, resulting in a net loss of $0.2 million, which is included in net loss on disposition of owned real estate on our consolidated statements of operations.

The following table presents the assets and liabilities related to owned real estate held for investment included in our consolidated balance sheets ($ in thousands):

March 31, 2026 December 31, 2025

Assets

Building and building improvements

$ 714,162

$ 708,097

Land and land improvements

478,920

461,585

Total

$ 1,193,082

$ 1,169,682

Less: accumulated depreciation

(43,997)

(34,707)

Owned real estate, net

$ 1,149,085

$ 1,134,975

Intangible real estate assets

$ 158,296

$ 161,690

Less: accumulated amortization

(52,117)

(44,601)

Intangible real estate assets, net(1)

$ 106,179

$ 117,089

Liabilities

Intangible real estate liabilities

$ 3,985

Less: accumulated amortization

(844)

(570)

Intangible real estate liabilities, net(2)

$ 3,141

$ 3,415

Included within other assets on our consolidated balance sheets. Refer to Note 6 for further information.

Included within other liabilities on our consolidated balance sheets. Refer to Note 6 for further information.

Revenue and expenses from owned real estate consisted of the following ($ in thousands):

Three Months Ended March 31,

2026

2025

Rental revenue

$ 24,174

$ 14,334

Hospitality revenue

44,461

17,036

Other operating revenue

5,959

5,663

Revenue from owned real estate

$ 74,594

$ 37,033

Operating expense

$ 61,090

$ 30,089

Depreciation and amortization expense

20,885

16,213

Total expenses from owned real estate

$ 81,975

$ 46,302

Loss from owned real estate

$ (7,381)

$ (9,269)

The following table presents the undiscounted future minimum rents we expect to receive for our office properties as of March 31, 2026. Leases at our multifamily assets are short term, generally 12 months or less, and are therefore not included ($ in thousands):

Future Minimum Rents

2026 (remaining)

62,785

2027

74,967

2028

65,762

2029

50,088

2030

42,852

Thereafter

130,843

Total

427,297

The following table presents the estimated future amortization of lease intangibles for each of the next five years and thereafter as March 31, 2026 ($ in thousands):

In-place lease intangibles

Above-market lease

intangibles

Below-market lease

intangibles

2026 (remaining)

20,758

4,544

(675)

2027

18,386

4,244

(758)

2028

13,136

3,409

(637)

2029

10,005

2,517

(512)

2030

7,390

2,163

(302)

Thereafter

14,526

5,101

(257)

Total

84,201

21,978

(3,141)

INVESTMENTS IN UNCONSOLIDATED ENTITIES

As of March 31, 2026, we hold certain investments in unconsolidated entities that are accounted for under the equity method of accounting or the FVO, as our ownership interest in each entity does not meet the requirements for consolidation. Refer to Note 2 for further details.

The following tables detail our investments in unconsolidated entities ($ in thousands):

March 31, 2026

Investments in Unconsolidated Entities

Number of Assets

Ownership Interest

Book Value

Unconsolidated entities carried at historical cost

Net Lease Joint Venture

260(1)

75%

$ 143,072

Total unconsolidated entities carried at historical cost

260

143,072

Unconsolidated entities carried at fair value

Bank Loan Portfolio Joint Venture

508(2)

35%(3)

101,328

Total unconsolidated entities carried at fair value

508

101,328

Total

768

$ 244,400

December 31,

2025

Investments in Unconsolidated Entities

Number of Assets

Ownership Interest

Book Value

Unconsolidated entities carried at historical cost

Net Lease Joint Venture

178(1)

75%

$ 106,478

Total unconsolidated entities carried at historical cost

178

106,478

Unconsolidated entities carried at fair value:

Bank Loan Portfolio Joint Venture

533(2)

35%(3)

111,010

Total unconsolidated entities carried at fair value:

533

111,010

Total

711

$ 217,488

The number of assets represents the number of commercial real estate properties.

The number of assets represents the number of commercial mortgage loans.

Represents our aggregate ownership interest in our Bank Loan Portfolio Joint Venture, which owns an initial portfolio of commercial mortgage loans acquired during the three months ended June 30, 2025, in which we hold a 29% interest, and an additional portfolio acquired during the three months ended September 30, 2025, in which we hold a 50% interest.

The following tables detail the activity related to our investments in unconsolidated entities during the three months ended March 31, 2026 and 2025 ($ in thousands):

Investments in Unconsolidated Entities

December 31,

2025

Contributions

Distributions

Income From Unconsolidated Entities(1)

Accumulated

Other Comprehensive Loss

March 31,

2026

Net Lease Joint Venture

$ 106,478

$ 58,893

$ (22,413)

$ 441

$ (327)

$ 143,072

Bank Loan Portfolio Joint Venture

111,010

(10,624)

942

101,328

Total

$ 217,488

$ 58,893

$ (33,037)

$ 1,383

$ (327)

$ 244,400

Accumulated

Loss From

Other

Investments in Unconsolidated Entities

December 31,

2024

Contributions

Distributions

Unconsolidated Entities(1)

Comprehensive Income

March 31,

2025

Net Lease Joint Venture

$ 4,452

$ 25,626

$ -

$ (874)

$ (184)

$ 29,020

Total

$ 4,452

$ 25,626

$ -

$ (874)

$ (184)

$ 29,020

Includes our share of non-cash items such as (i) depreciation and amortization, and (ii) unrealized gains recorded by unconsolidated entities.

Our Net Lease Joint Venture and Bank Loan Portfolio Joint Venture have each entered into and may continue to enter into derivative agreements where we would be required to make payment for periodic or final settlement of derivative contracts if either our Net Lease Joint Venture or Bank Loan Portfolio Joint Venture, as applicable, is unable to fulfill its respective obligations.

6. OTHER ASSETS AND LIABILITIES

Other Assets

The following table details the components of our other assets ($ in thousands):

March 31, 2026

December 31, 2025

Accrued interest receivable

$ 137,013

$ 132,975

Real estate intangible assets, net

106,179

117,089

Debt securities, at fair value(1)

66,135

Other real estate assets

52,040

42,153

Derivative assets

35,993

10,492

Accounts receivable and other assets(2)

7,027

56,848

Collateral deposited under derivative agreements

6,990

25,300

Loan portfolio payments held by servicer(3)

6,833

27,374

Prepaid expenses

2,614

1,032

Total

$ 420,824

$ 413,263

Represents an investment in a significant risk transfer, or SRT, transaction with a UK financial institution structured as a credit-linked note, or the UK Bank Loan Portfolio SRT. The investment constitutes the first-loss tranche of a reference portfolio comprising a diversified, granular portfolio of low-leverage commercial real estate loans held by the UK financial institution. The SRT investment earns a floating-rate cash coupon of SONIA + 7.00%, which is recognized in interest and related income in our consolidated statements of operations. The investment is recorded at fair value, with changes in fair value recognized in other income, net in our consolidated statements of operations. As of March 31, 2026, no realized credit losses have been incurred with respect to the underlying reference loan portfolio.

Includes $2.6 million and $55.5 million as of March 31, 2026 and December 31, 2025, respectively, of cash collateral held by our CLOs that was subsequently remitted by the trustee to repay a portion of the outstanding senior CLO securities, or that was subsequently reinvested by purchasing additional collateral into our CLOs.

Primarily represents loan principal repayments held by our third-party loan servicers as of the balance sheet date that were remitted to us during the subsequent remittance cycle.

Other Liabilities

The following table details the components of our other liabilities ($ in thousands):

March 31, 2026

December 31, 2025

Other real estate liabilities

$ 124,838

$ 127,703

Accrued dividends payable

79,281

79,081

Accrued interest payable

63,635

58,871

Other secured debt(1)

38,825

39,475

Accrued management fees payable

14,813

16,434

Accounts payable and other liabilities

13,540

14,653

Current expected credit loss reserves for unfunded loan commitments(2)

13,071

11,617

Derivative liabilities

8,997

26,596

Debt repayments pending servicer remittance(3)

2,842

11,748

Total

$ 359,842

$ 386,178

Represents financing on our retained investment in the European Loan Securitization. Refer to Note 8 for further information.

Represents the CECL reserve related to our unfunded loan commitments.

Represents pending transfers from our third-party loan servicer that were remitted to our banking counterparties or CLO trustees during the subsequent remittance cycle.

Current Expected Credit Loss Reserves for Unfunded Loan Commitments

As of March 31, 2026, we had aggregate unfunded commitments of $1.2 billion related to 52 loans. The expected credit losses over the contractual period of our loans are impacted by our obligations to extend further credit through our unfunded loan commitments. See Note 2 for further discussion of the CECL reserves related to our unfunded loan commitments, and Note 21 for further discussion of our unfunded loan commitments. During the three months ended March 31, 2026, we recorded an increase in the CECL reserves related to our unfunded loan commitments of $1.5 million, bringing our total unfunded loan commitments CECL reserve to $13.1 million as of March 31, 2026. During the three months ended March 31, 2025, we recorded an increase in the CECL reserves related to our unfunded loan commitments of

$75 thousand, bringing our total unfunded loan commitments CECL reserve to $10.5 million as of March 31, 2025.

7. SECURED DEBT, NET

Our secured debt represents borrowings under our secured credit facilities. During the three months ended March 31, 2026, we closed $161.3 million of new borrowings against $351.0 million of collateral assets.

The following table details our secured debt ($ in thousands):

Secured Debt Borrowings Outstanding

March 31, 2026

December 31, 2025

Secured credit facilities

$ 9,099,002

$ 10,125,839

Deferred financing costs(1)

(9,564)

(8,547)

Net book value of secured debt

$ 9,089,438

$ 10,117,292

Costs incurred in connection with our secured debt are recorded on our consolidated balance sheets when incurred and recognized as a component of interest expense over the life of each related facility.

Secured Credit Facilities

Our secured credit facilities are bilateral agreements we use to finance diversified pools of senior loan collateral with sufficient flexibility to accommodate our investment and asset management strategy. The facilities are generally structured to provide currency, index, and term-matched financing without capital markets-based mark-to-market provisions. Our credit facilities are diversified across 16 counterparties, primarily consisting of top global financial institutions to minimize our counterparty risk exposure.

The following table details our secured credit facilities as of March 31, 2026 ($ in thousands):

March 31, 2026

Recourse Limitation

Currency

Lenders(1)

Borrowings

Wtd. Avg. Maturity(2)

Loan Count

Collateral(3)

Wtd. Avg. Maturity(4)

Wtd. Avg.

Range

USD

$ 3,402,516

November 2027

$ 5,208,035

November 2027

34%

25% - 100%

GBP

2,584,533

November 2028

3,502,199

December 2028

25%

EUR

1,593,152

September 2027

2,265,654

November 2027

42%

25% - 100%

Others(5)

1,518,801

May 2029

1,904,463

May 2029

25%

Total

$ 9,099,002

May 2028

106

$12,880,351

May 2028

31%

25% - 100%

Represents the number of lenders with fundings advanced in each respective currency, as well as the total number of facility lenders. The total number of facility lenders includes two additional lenders that had no fundings advanced as of March 31, 2026.

Our secured debt agreements are generally term-matched to their underlying collateral. Therefore, the weighted-average maturity is generally allocated based on the maximum maturity date of the collateral loans, assuming all extension options are exercised by the borrower. In limited instances, the maturity date of the respective secured credit facility is used.

Represents the principal balance of the collateral loan assets and the carrying value of the collateral owned real estate assets.

Maximum maturity assumes all extension options are exercised by the borrower; however, our loans may be repaid prior to such date.

Includes Australian Dollar, Canadian Dollar, and Swedish Krona currencies.

The availability of funding under our secured credit facilities is based on the amount of approved collateral, which collateral is proposed by us in our discretion and approved by the respective counterparty in its discretion, resulting in a mutually agreed collateral portfolio construction. Certain structural elements of our secured credit facilities, including the limitation on recourse to us and facility economics, are influenced by the specific collateral portfolio construction of each facility, and therefore vary within and among the facilities.

The following tables detail the spread of our secured credit facilities as of March 31, 2026 and December 31, 2025 ($ in thousands):

Three Months Ended

March 31, 2026

Wtd. Avg.

Spread(1)

New Financings(2)

Total Borrowings

All-in

Cost(1)(3)(4)

Collateral(5)

All-in

Yield(1)(3)

Net Interest

Margin(6)

+ 1.50% or less(7)

$ 59,040

$ 4,350,442

+1.55 %

$ 5,979,079

+3.07 %

+1.52 %

+ 1.51% to + 1.75%

2,141,407

+1.75 %

2,819,823

+3.48 %

+1.73 %

+ 1.76% to + 2.00%

102,261

1,086,492

+2.07 %

1,729,600

+2.82 %

+0.75 %

+ 2.01% or more

1,520,661

+2.61 %

2,351,849

+4.27 %

+1.66 %

Total

$ 161,301

$ 9,099,002

+1.83 %

$ 12,880,351

+3.36 %

+1.53 %

Year Ended December 31, 2025

December 31, 2025

Wtd. Avg.

Spread(1)

New Financings(2)

Total Borrowings

All-in

Cost(1)(3)(4)

Collateral(5)

All-in

Yield(1)(3)

Net Interest

Margin(6)

+ 1.50% or less(7)

$ 2,018,709

$ 5,098,876

+1.54 %

$ 6,936,909

+2.97 %

+1.43 %

+ 1.51% to + 1.75%

660,636

2,419,595

+1.75 %

3,232,654

+3.50 %

+1.75 %

+ 1.76% to + 2.00%

325,160

1,088,336

+2.08 %

1,797,080

+2.94 %

+0.86 %

+ 2.01% or more

153,625

1,519,032

+2.74 %

2,371,763

+4.25 %

+1.51 %

Total

$ 3,158,130

$ 10,125,839

+1.83 %

$ 14,338,406

+3.29 %

+1.46 %

The spread, all-in cost, and all-in yield are expressed over the relevant floating benchmark rates, which include SOFR, SONIA, EURIBOR, CORRA, and other indices as applicable.

Represents the amount of new borrowings we closed during the three months ended March 31, 2026 and year ended December 31, 2025, respectively.

In addition to spread, the cost includes the associated deferred fees and expenses related to the respective borrowings. In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, and purchase discounts, as well as the accrual of exit fees. All-in yield excludes loans accounted for under the cost-recovery and nonaccrual methods, if any, and owned real estate assets.

Represents the weighted-average all-in cost as of March 31, 2026 and December 31, 2025, respectively, and is not necessarily indicative of the spread applicable to recent or future borrowings.

Represents the principal balance of the collateral loan assets and the carrying value of the collateral owned real estate assets.

Represents the difference between the weighted-average all-in yield and weighted-average all-in cost.

Includes an interest rate swap with a $35.6 million notional amount that effectively converts our floating rate liability to a fixed rate liability to align with the financed fixed rate loan exposure.

Our secured credit facilities generally permit us to increase or decrease the amount advanced against the pledged collateral in our discretion within certain maximum/minimum amounts and frequency limitations. As of March 31, 2026, there was an aggregate $438.7 million available to be drawn at our discretion under our credit facilities.

Financial Covenants

As of March 31, 2026, we are subject to the following financial covenants related to our secured debt and secured debt of our unconsolidated entities: (i) our ratio of earnings before interest, taxes, depreciation, and amortization, or EBITDA, to fixed charges, as defined in the agreements, shall be not less than 1.3 to 1.0; (ii) our tangible net worth, as defined in the agreements, shall not be less than $2.9 billion as of each measurement date plus 75% to 85% of the net cash proceeds of future equity issuances subsequent to March 31, 2026; (iii) cash liquidity shall not be less than the greater of (x) $10.0 million or (y) no more than 5% of our recourse indebtedness; and (iv) our indebtedness shall not exceed 83.33% of our total assets. As of March 31, 2026 and December 31, 2025, we were in compliance with these covenants.

In April 2026, we closed an amendment to one of our secured debt agreements to reduce, effective as of June 30, 2026, the required tangible net worth under such agreement from $2.9 billion to $2.8 billion, the same required minimum tangible net worth applicable under all of our other secured debt agreements as of March 31, 2026, following amendments to certain of those other agreements that closed during the three months ended March 31, 2026.

8. SECURITIZED DEBT OBLIGATIONS, NET

We have financed certain pools of our loans through CLOs and have also financed one of our loans through a securitization vehicle, or the European Loan Securitization. The CLOs and the European Loan Securitization are consolidated in our financial statements and have issued securitized debt obligations that are non-recourse to us. Refer to Note 19 for further discussion of our CLOs and the European Loan Securitization. The following tables detail our securitized debt obligations and the underlying collateral assets that are financed by our CLOs and the European Loan Securitization ($ in thousands):

March 31, 2026

Securitized Debt Obligations

Count

Principal Balance

Book Value(1)

Wtd. Avg. Yield/Cost(2)

Term(3)

CLOs

2026 FL6 Collateralized Loan Obligation

Senior CLO Securities Outstanding

880,000

872,024

+ 1.84 %

August 2043

Underlying Collateral Assets 19 999,379 999,379 + 3.04 % September 2029

2025 FL5 Collateralized Loan Obligation

Senior CLO Securities Outstanding 1 831,250 822,738 + 2.15 % October 2042

Underlying Collateral Assets 19 997,984 997,984 + 3.44 % February 2029

2021 FL4 Collateralized Loan Obligation

Senior CLO Securities Outstanding 1 516,012 516,012 + 1.60 % May 2038

Underlying Collateral Assets 14 645,605 645,605 + 3.98 % May 2027

2020 FL2 Collateralized Loan Obligation

Senior CLO Securities Outstanding 1 475,960 475,960 + 1.88 % February 2038

Underlying Collateral Assets 10 644,610 644,610 + 2.76 % January 2027

Total CLOs

Senior CLO Securities Outstanding 4 $ 2,703,222 $ 2,686,734 + 1.89 %

Underlying Collateral Assets 62 3,287,578 3,287,578 + 3.27 %

European Loan Securitization

Financing Provided 1 $ 189,501 $ 187,755 + 1.65 % July 2030

Underlying Collateral Assets(4) 1 245,066 242,518 + 2.97 % July 2030

Total

Senior CLO Securities Outstanding /

Financing Provided(5)

5 $ 2,892,723 $ 2,874,489

+ 1.88 %

Underlying Collateral Assets 63 3,532,644 3,530,096 + 3.27 %

The book value of underlying collateral assets excludes any applicable CECL reserves.

In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, purchase discounts, and accrual of exit fees, while all-in cost includes the amortization of deferred origination fees and financing costs. The weighted-average all-in yield and cost are expressed as a spread over the relevant floating benchmark rates, which is SOFR for the CLOs and EURIBOR for the European Loan Securitization. All-in yield excludes loans accounted for under the cost-recovery and nonaccrual methods, if any, owned real estate assets, and cash from repayment proceeds held in certain of our CLOs that may be used to add new eligible collateral assets.

Underlying collateral assets term represents the weighted-average final maturity of such loans, assuming all extension options are exercised by the borrower, and excludes owned real estate assets. Repayments of securitized debt obligations are tied to timing of the related collateral loan asset repayments. The term of these obligations represents the rated final distribution date of the securitizations.

We financed our $55.8 million retained interests in the securitization under a repurchase agreement structured without capital markets-based mark-to-market provisions. The amount of the financing is included in other liabilities on our consolidated balance sheets.

During the three months ended March 31, 2026, we recorded $34.7 million of interest expense related to our securitized debt obligations.

December 31, 2025

Securitized Debt Obligations

Count

Principal Balance

Book Value(1)

Wtd. Avg. Yield/Cost(2)(3)

Term(4)

CLOs

2025 FL5 Collateralized Loan Obligation

Senior CLO Securities Outstanding

$ 831,250

$ 822,243

+ 2.15 %

October 2042

Underlying Collateral Assets

944,537

+ 3.49 %

October 2028

2021 FL4 Collateralized Loan Obligation

Senior CLO Securities Outstanding

605,613

+ 1.45 %

May 2038

Underlying Collateral Assets

736,360

+ 3.18 %

February 2027

2020 FL2 Collateralized Loan Obligation

Senior CLO Securities Outstanding

519,967

+ 1.82 %

February 2038

Underlying Collateral Assets

691,964

+ 2.84 %

January 2027

Total CLOs

Senior CLO Securities Outstanding

$ 1,956,830

$ 1,947,823

+ 1.84 %

Underlying Collateral Assets

2,372,861

+ 3.22 %

European Loan Securitization

Financing Provided

$ 192,666

$ 191,896

+ 1.53 %

July 2030

Underlying Collateral Assets(5)

249,160

246,421

+ 2.97 %

July 2030

Total

Senior CLO Securities Outstanding / Financing Provided(6)

$ 2,149,496

$ 2,139,719

+ 1.82 %

Underlying Collateral Assets

2,622,021

2,619,282

+ 3.22 %

The book value of underlying collateral assets excludes any applicable CECL reserves.

In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, purchase discounts, and accrual of exit fees.

The weighted-average all-in yield and cost are expressed as a spread over the relevant floating benchmark rates, which is SOFR for the CLOs and EURIBOR for the European Loan Securitization. All-in yield excludes loans accounted for under the cost-recovery and nonaccrual methods, if any, owned real estate assets, and cash from repayment proceeds held in certain of our CLOs that may be used to add new eligible collateral assets.

Underlying collateral assets term represents the weighted-average final maturity of such loans, assuming all extension options are exercised by the borrower. Repayments of securitized debt obligations are tied to timing of the related collateral loan asset repayments. The term of these obligations represents the rated final distribution date of the securitizations.

During the year ended December 31, 2025, we recorded $140.0 million of interest expense related to our securitized debt obligations.

Disclaimer

Blackstone Mortgage Trust Inc. published this content on April 29, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 29, 2026 at 11:15 UTC.