Ares Commercial Real Estate Corp
For the period ended Sep 30, 2025. Filed Nov 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 7, 2025
ACRE$3.65+7.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-05.
0001628280-25-037529
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-07.
0001628280-25-050392
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 98 previous paragraphs and 107 current paragraphs.
52 unchanged; 43 reworded; 9 added; 2 removed; 1 previous and 3 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
•We closed a $50.0 million senior mortgage loan on a multifamily property located in Massachusetts.
Current report
•We previously held a senior A-Note loan with an outstanding principal balance of $59.0 million and a subordinated B-Note loan with an outstanding principal balance of $10.6 million, which were both collateralized by an office property located in New York. The subordinated B-Note loan was subordinate to new borrower equity related to additional capital contributions. In September 2025, we entered into a modification and extension agreement with the borrower to, among other things, (1) transfer $6.0 million of the outstanding principal balance from the subordinated B-Note loan to the senior A-Note loan, which increased the outstanding principal balance of the senior A-Note loan from $59.0 million to $65.0 million and (2) extinguish the remaining $4.6 million of outstanding principal balance of the subordinated B-Note loan. Prior to entering into the modification and extension agreement with the borrower, the subordinated B-Note loan was on non-accrual status and had a carrying value of $7.6 million. Upon the transfer of the $6.0 million of outstanding principal balance from the subordinated B-Note loan to the senior A-Note loan, the remaining outstanding principal balance of the subordinated B-Note loan was $4.6 million and the remaining carrying value was $1.6 million. In conjunction with the extinguishment of the subordinated B-Note loan, we recognized a realized loss of $1.6 million, which was equal to the remaining carrying value of the subordinated B-Note loan.
Current report
During the third quarter of 2025, the U.S. economy continued to expand supported by consumer spending. Meanwhile, macroeconomic volatility slowed, providing space for recovery in the commercial real estate sector. Individual property transaction volumes continued year-over-year increases, while broad market indices demonstrated flat to increasing commercial real estate values on a year-over-year and quarter-over-quarter basis. Aiding valuations, new construction starts across various sectors like multifamily and retail remain near 10-year lows. Lending markets continued to support improving commercial real estate activity as conduit and CMBS new issue volumes increased quarter-over-quarter.
Current report
On October 1, 2025, we closed a $50.0 million senior mortgage loan on a multifamily property located in North Carolina. At closing, the outstanding principal balance was $50.0 million. The loan has a per annum interest rate of SOFR plus 2.40%.
Current report
On October 22, 2025, we closed a $58.0 million senior mortgage loan on a hotel property located in South Carolina. At closing, the outstanding principal balance was $48.3 million. The loan has a per annum interest rate of SOFR plus 3.50%.
Current report
On October 28, 2025, we closed a $100.0 million senior mortgage loan on a portfolio of industrial properties located in Georgia. At closing, the outstanding principal balance was $96.4 million. The loan has a per annum interest rate of SOFR plus 2.25%.
Current report
On October 31, 2025, we closed a $55.3 million senior mortgage loan on an industrial property located in California. At closing, the outstanding principal balance was $50.4 million. The loan has a per annum interest rate of SOFR plus 3.00%.
Current report
On September 19, 2024, we acquired legal title to a multi-building office property located in North Carolina through a deed in lieu of foreclosure. The office property previously collateralized a $68.6 million senior mortgage loan held by us that was in maturity default due to the failure of the borrower to repay the outstanding principal balance of the loan by the May 2024 maturity date. In conjunction with the deed in lieu of foreclosure, we derecognized the $68.6 million senior mortgage loan and recognized the office property as real estate owned. As we do not expect to complete a sale of the office property within the next twelve months, the office property is classified as held for investment, and is carried at its estimated fair value at acquisition and is presented net of accumulated depreciation or amortization and impairment charges. For both the three and nine months ended September 30, 2024, we recognized a realized loss of $5.8 million in our consolidated statements of operations on the derecognition of the senior mortgage loan as the fair value of the office property at acquisition of $60.2 million and the net operating assets and liabilities held at the office property of $(0.2) million at acquisition was less than the $65.8 million cost basis of the senior mortgage loan.
Current report
We previously held a senior A-Note loan with an outstanding principal balance of $59.0 million and a subordinated B-Note loan with an outstanding principal balance of $10.6 million, which were both collateralized by an office property located in New York. The subordinated B-Note loan was subordinate to new borrower equity related to additional capital contributions. In September 2025, we entered into a modification and extension agreement with the borrower to, among other things, (1) transfer $6.0 million of the outstanding principal balance from the subordinated B-Note loan to the senior A-Note loan, which increased the outstanding principal balance of the senior A-Note loan from $59.0 million to $65.0 million and (2) extinguish the remaining $4.6 million of outstanding principal balance of the subordinated B-Note loan. Upon the transfer of the $6.0 million of outstanding principal balance from the subordinated B-Note loan to the senior A-Note loan, the remaining outstanding principal balance of the subordinated B-Note loan was $4.6 million and the remaining carrying value was $1.6 million. In conjunction with the extinguishment of the remaining subordinated B-Note loan, we recognized a realized loss of $1.6 million in our consolidated statements of operations, which was equal to the remaining carrying value of the subordinated B-Note loan.
Removed paragraphs (2)
Previous report
•We received a discounted payoff of a $51.5 million senior mortgage loan, which was collateralized by an office (life sciences) property in Massachusetts, in conjunction with a sale of the office (life sciences) property by the borrower. At the time of the discounted payoff, the senior mortgage loan was on non-accrual status. For the three and six months ended June 30, 2025, we received $1.1 million and $2.1 million, respectively, of interest payments in cash on the senior Massachusetts loan that was recognized as a reduction to the carrying value of the loan and the borrower was current on all contractual interest payments. We recognized a realized loss of $33.0 million as the carrying value, not including the CECL Reserve, exceeded the net proceeds from the payoff of the loan.
Previous report
During the second quarter of 2025, shifting trade policies led to increased uncertainty in the outlook for the U.S. economy and volatility in many reported economic indicators. Although the Federal Reserve lowered its expectations for future economic growth at its June meeting due to the expected impact from tariffs, the U.S. economy continued to expand in the second quarter of 2025, supported by steady unemployment levels and healthy levels of consumer spending.
Reworded paragraphs (43)
Previous wording
Developments During the Second Quarter of 2025:
Current wording
Developments During the Third Quarter of 2025:
Previous wording
On July 23, 2025, we closed an $11.2 million senior mortgage loan on a self storage property located in Arizona. At closing, the outstanding principal balance was $10.1 million. The loan has a per annum interest rate of SOFR plus 3.25%.
Current wording
•We closed an $11.2 million senior mortgage loan on a self storage property located in Arizona.
Previous wording
On July 23, 2025, we closed a $9.9 million senior mortgage loan on a self storage property located in Florida. At closing, the outstanding principal balance was $9.0 million. The loan has a per annum interest rate of SOFR plus 3.75%.
Current wording
•We closed a $9.9 million senior mortgage loan on a self storage property located in Florida.
Previous wording
On July 23, 2025, we closed a $9.1 million senior mortgage loan on a self storage property located in Pennsylvania. At closing, the outstanding principal balance was $8.3 million. The loan has a per annum interest rate of SOFR plus 3.50%.
Current wording
•We closed a $9.1 million senior mortgage loan on a self storage property located in Pennsylvania.
Previous wording
In the third quarter of 2025, uncertainty remains around proposed U.S. trade and economic policies and their potential impact to the U.S. economy. While the Federal Reserve has signaled a willingness to reduce interest rates in 2025, there is no certainty that there will be a decrease in interest rates or the magnitude or pace of potential decreases will occur, especially if inflation accelerates. Should these economic factors become more acute, the commercial real estate market we service may be further adversely impacted.
Current wording
In September and October 2025, the Federal Reserve resumed its monetary easing cycle with an aggregate 50 basis point rate reduction. While the Federal Reserve has signaled a willingness to further reduce interest rates in 2025, there is no certainty that there will be a decrease in interest rates or of the magnitude or pace of potential decreases, especially if inflation accelerates.
Previous wording
Continued rising operating costs, such as property insurance and raw material costs for property development and improvements, placed pressure on cash flow performance across many real estate property types in the second quarter of 2025. Office properties, in particular, continue to experience challenges driven by remote work and elevated costs to operate, improve or repurpose office properties. These factors have largely resulted in lower demand for office space and have driven elevated levels of vacancy rates and default rates. Offsetting some of these challenges, there has been a significant decline in new commercial real estate development that began in 2023 and has continued benefitting existing in-demand property types. Ultimately, this lack of new future inventory may result in a shortage of contemporary, in-demand properties in the years to come, furthering the disparity between supply and demand dynamics. In addition, there is a significant amount of unspent capital targeting commercial real estate properties that could support values and elevate transaction activities.
Current wording
Rising operating costs, such as property insurance and raw material costs for property development and improvements, placed pressure on cash flow performance across many real estate property types in the third quarter of 2025. Although certain markets are showing a recovery, office properties nationally continue to experience challenges driven by remote work and elevated costs to operate, improve or repurpose these office properties. These factors have largely resulted in lower demand for office space and have driven elevated levels of vacancy rates and default rates. Offsetting some of these challenges, there has been a significant decline in new commercial real estate development that began in 2023 and has continued benefitting existing in-demand property types. Ultimately, this lack of new future inventory may result in a shortage of contemporary, in-demand properties in the years to come, furthering the disparity between supply and demand dynamics. In addition, there is a significant amount of unspent capital targeting commercial real estate properties that could support values and elevate transaction activities.
Previous wording
On July 31, 2024, our board of directors extended the Repurchase Program of up to $50.0 million, which was expected to be in effect until July 31, 2025, or until the approved dollar amount had been used to repurchase shares. On July 30, 2025, our board of directors further extended the Repurchase Program of up to $50.0 million, which is expected to be in effect until July 31, 2026, or until the approved dollar amount has been used to repurchase shares. Pursuant to the Repurchase Program, we may repurchase shares of our common stock in amounts, at prices and at such times as we deem appropriate, subject to market conditions and other considerations, including all applicable legal requirements. Repurchases may include purchases on the open market or privately negotiated transactions, under Rule 10b5-1 trading plans, under accelerated share repurchase programs, in tender offers and otherwise. The Repurchase Program does not obligate us to acquire any particular amount of shares of our common stock and may be modified or suspended at any time at our discretion. During the three and six months ended June 30, 2025, we did not repurchase any shares through the Repurchase Program.
Current wording
On July 31, 2024, our board of directors extended the Repurchase Program of up to $50.0 million, which was expected to be in effect until July 31, 2025, or until the approved dollar amount had been used to repurchase shares. On July 30, 2025, our board of directors further extended the Repurchase Program of up to $50.0 million, which is expected to be in effect until July 31, 2026, or until the approved dollar amount has been used to repurchase shares. Pursuant to the Repurchase Program, we may repurchase shares of our common stock in amounts, at prices and at such times as we deem appropriate, subject to market conditions and other considerations, including all applicable legal requirements. Repurchases may include purchases on the open market or privately negotiated transactions, under Rule 10b5-1 trading plans, under accelerated share repurchase programs, in tender offers and otherwise. The Repurchase Program does not obligate us to acquire any particular amount of shares of our common stock and may be modified or suspended at any time at our discretion. During the three and nine months ended September 30, 2025, we did not repurchase any shares through the Repurchase Program.
Previous wording
As of June 30, 2025, our portfolio included 26 loans held for investment, excluding 189 loans that were repaid, sold, converted to real estate owned or written off since inception. As of June 30, 2025, the aggregate originated commitment under these loans at closing was approximately $1.5 billion and outstanding principal was $1.4 billion. During the six months ended June 30, 2025, we funded approximately $19.3 million of outstanding principal and received repayments of $336.9 million of outstanding principal. As of June 30, 2025, 70.8% of our loans have SOFR floors, with a weighted average floor of 0.93%, calculated based on loans with SOFR floors. References to SOFR or “S” are to 30-day SOFR (unless otherwise specifically stated).
Current wording
As of September 30, 2025, our portfolio included 27 loans held for investment, excluding 193 loans that were repaid, sold, converted to real estate owned or written-off since inception. As of September 30, 2025, the aggregate originated commitment under these loans at closing was approximately $1.4 billion and outstanding principal was $1.3 billion. During the nine months ended September 30, 2025, we funded approximately $114.8 million of outstanding principal, received repayments of $498.4 million of outstanding principal and wrote-off one loan with $4.6 million of outstanding principal. As of September 30, 2025, 80.5% of our loans have SOFR floors, with a weighted average floor of 1.04%, calculated based on loans with SOFR floors. References to SOFR or “S” are to 30-day SOFR (unless otherwise specifically stated).
Previous wording
On July 23, 2025, we closed a $12.3 million senior mortgage loan on a self storage property located in Florida. At closing, the outstanding principal balance was $11.6 million. The loan has a per annum interest rate of SOFR plus 3.25%.
Current wording
On October 20, 2025, we closed a $7.3 million senior mortgage loan on a self storage property located in Florida. At closing, the outstanding principal balance was $6.8 million. The loan has a per annum interest rate of SOFR plus 3.50%.
Previous wording
Our board of directors declared a regular cash dividend of $0.15 per common share for the third quarter of 2025. The third quarter 2025 dividend will be payable on October 15, 2025 to common stockholders of record as of September 30, 2025.
Current wording
Our board of directors declared a regular cash dividend of $0.15 per common share for the fourth quarter of 2025. The fourth quarter 2025 dividend will be payable on January 15, 2026 to common stockholders of record as of December 31, 2025.
Previous wording
The following table sets forth a summary of our consolidated results of operations for the three and six months ended June 30, 2025 and 2024 ($ in thousands):
Current wording
The following table sets forth a summary of our consolidated results of operations for the three and nine months ended September 30, 2025 and 2024 ($ in thousands):
Previous wording
The following tables set forth select details of our consolidated results of operations for the three and six months ended June 30, 2025 and 2024 ($ in thousands):
Current wording
The following tables set forth select details of our consolidated results of operations for the three and nine months ended September 30, 2025 and 2024 ($ in thousands):
Previous wording
For the three months ended June 30, 2025 and 2024, net interest margin was approximately $7.0 million and $13.4 million, respectively. For the three months ended June 30, 2025 and 2024, interest income of $23.1 million and $40.8 million, respectively, was generated by weighted average earning assets of $1.4 billion and $2.1 billion, respectively, offset by $16.1 million and $27.5 million, respectively, of interest expense, unused fees and amortization of deferred loan costs. The weighted average borrowings under the Secured Funding Agreements, Notes Payable, the Secured Term Loan and securitization debt, as applicable, were $0.9 billion for the three months ended June 30, 2025 and $1.5 billion for the three months ended June 30, 2024. The decrease in net interest margin for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 relates to a decrease in our weighted average earning assets and weighted average borrowings for the three months ended June 30, 2025 and a decrease in SOFR rates on our loans held for investment for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024.
Current wording
For the three months ended September 30, 2025 and 2024, net interest margin was approximately $8.5 million and $11.9 million, respectively. For the three months ended September 30, 2025 and 2024, interest income of $23.3 million and $39.3 million, respectively, was generated by weighted average earning assets of $1.3 billion and $2.0 billion, respectively, offset by $14.8 million and $27.4 million, respectively, of interest expense, unused fees and amortization of deferred loan costs. The weighted average borrowings under the Secured Funding Agreements, Notes Payable, the Secured Term Loan and securitization debt, as applicable, were $0.8 billion for the three months ended September 30, 2025 and $1.4 billion for the three months ended September 30, 2024. The decrease in net interest margin for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 is due to a decrease in our weighted average earning assets and weighted average borrowings for the three months ended September 30, 2025 and a decrease in SOFR rates on our loans held for investment for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024.
Previous wording
For the six months ended June 30, 2025 and 2024, net interest margin was approximately $16.3 million and $28.6 million, respectively. For the six months ended June 30, 2025 and 2024, interest income of $50.6 million and $84.9 million, respectively, was generated by weighted average earning assets of $1.5 billion and $2.1 billion, respectively, offset by $34.3 million and $56.3 million, respectively, of interest expense, unused fees and amortization of deferred loan costs. The weighted average borrowings under the Secured Funding Agreements, Notes Payable, the Secured Term Loan and securitization debt, as applicable, were $1.0 billion for the six months ended June 30, 2025 and $1.5 billion for the six months ended June 30, 2024. The decrease in net interest margin for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 relates to a decrease in our weighted average earning assets and weighted average borrowings for the six months ended June 30, 2025 and a decrease in SOFR rates on our loans held for investment for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024.
Current wording
For the nine months ended September 30, 2025 and 2024, net interest margin was approximately $24.8 million and $40.5 million, respectively. For the nine months ended September 30, 2025 and 2024, interest income of $73.9 million and $124.2 million, respectively, was generated by weighted average earning assets of $1.4 billion and $2.1 billion, respectively, offset by $49.1 million and $83.7 million, respectively, of interest expense, unused fees and amortization of deferred loan costs. The weighted average borrowings under the Secured Funding Agreements, Notes Payable, the Secured Term Loan and securitization debt, as applicable, were $0.9 billion for the nine months ended September 30, 2025 and $1.5 billion for the nine months ended September 30, 2024. The decrease in net interest margin for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 is due to a decrease in our weighted average earning assets and weighted average borrowings for the nine months ended September 30, 2025 and a decrease in SOFR rates on our loans held for investment for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024.
Previous wording
On September 19, 2024, we acquired legal title to an office property located in North Carolina through a deed in lieu of foreclosure. Prior to September 19, 2024, the office property collateralized a $68.6 million senior mortgage loan that we held that was in maturity default due to the failure of the borrower to repay the outstanding principal balance of the loan by the May 2024 maturity date. In conjunction with the deed in lieu of foreclosure, we derecognized the $68.6 million senior mortgage loan and recognized the office property as real estate owned. Revenues from this property consist primarily of rental revenue from operating leases. For the three and six months ended June 30, 2025, revenue from real estate owned related to this property was $2.3 million and $4.7 million, respectively.
Current wording
On September 19, 2024, we acquired legal title to a multi-building office property located in North Carolina through a deed in lieu of foreclosure. Prior to September 19, 2024, the office property collateralized a $68.6 million senior mortgage loan that we held that was in maturity default due to the failure of the borrower to repay the outstanding principal balance of the loan by the May 2024 maturity date. In conjunction with the deed in lieu of foreclosure, we derecognized the $68.6 million senior mortgage loan and recognized the office property as real estate owned. Revenues from this property consist primarily of rental revenue from operating leases. For the three and nine months ended September 30, 2025, revenue from real estate owned related to this property was $2.4 million and $7.1 million, respectively. For both the three and nine months ended September 30, 2024, revenue from real estate owned related to this property was $0.3 million.
Previous wording
On June 12, 2024, we acquired legal title to an office property located in California through a foreclosure. Prior to June 12, 2024, the office property collateralized a $33.2 million senior mortgage loan that we held that was in maturity default due to the failure of the borrower to repay the outstanding principal balance of the loan by the December 2023 maturity date. In conjunction with the foreclosure, we derecognized the $33.2 million senior mortgage loan and recognized the office property as real estate owned. Revenues from this property consisted primarily of rental revenue from operating leases. For the period from June 12, 2024 to June 30, 2024, revenue from real estate owned related to this property was $0.2 million. On November 15, 2024, we closed the sale of the office property to a third party.
Current wording
On June 12, 2024, we acquired legal title to an office property located in California through a foreclosure. Prior to June 12, 2024, the office property collateralized a $33.2 million senior mortgage loan that we held that was in maturity default due to the failure of the borrower to repay the outstanding principal balance of the loan by the December 2023 maturity date. In conjunction with the foreclosure, we derecognized the $33.2 million senior mortgage loan and recognized the office property as real estate owned. Revenues from this property consisted primarily of rental revenue from operating leases. For the three and nine months ended September 30, 2024, revenue from real estate owned related to this property was $1.1 million and $1.4 million, respectively. On November 15, 2024, we closed the sale of the office property to a third party.
Previous wording
On September 8, 2023, we acquired legal title to a mixed-use property located in Florida through a consensual foreclosure. Prior to September 8, 2023, the mixed-use property collateralized an $82.9 million senior mortgage loan that we held that was in maturity default due to the failure of the borrower to repay the outstanding principal balance of the loan by the February 2023 maturity date. In conjunction with the consensual foreclosure, we derecognized the $82.9 million senior mortgage loan and recognized the mixed-use property as real estate owned. Revenues from this property consist primarily of rental revenue from operating leases. For the three and six months ended June 30, 2025, revenue from real estate owned related to this property was $3.3 million and $6.5 million, respectively. For the three and six months ended June 30, 2024, revenue from real estate owned related to this property was $3.2 million and $6.7 million, respectively.
Current wording
On September 8, 2023, we acquired legal title to a mixed-use property located in Florida through a consensual foreclosure. Prior to September 8, 2023, the mixed-use property collateralized an $82.9 million senior mortgage loan that we held that was in maturity default due to the failure of the borrower to repay the outstanding principal balance of the loan by the February 2023 maturity date. In conjunction with the consensual foreclosure, we derecognized the $82.9 million senior mortgage loan and recognized the mixed-use property as real estate owned. Revenues from this property consist primarily of rental revenue from operating leases. For the three and nine months ended September 30, 2025, revenue from real estate owned related to this property was $3.3 million and $9.8 million, respectively. For the three and nine months ended September 30, 2024, revenue from real estate owned related to this property was $3.3 million and $9.9 million, respectively.
Previous wording
See the Related Party Expenses, Other Expenses and Expenses from Real Estate Owned discussions below for the cause of the changes in operating expenses for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024, respectively.
Current wording
See the Related Party Expenses, Other Expenses and Expenses from Real Estate Owned discussions below for the cause of the changes in operating expenses for the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024, respectively.
Previous wording
For the six months ended June 30, 2025, related party expenses included $5.0 million in management fees due to our Manager pursuant to the Management Agreement. No incentive fees were incurred for the six months ended June 30, 2025. For the six months ended June 30, 2025, related party expenses also included $2.0 million for our share of allocable general and administrative expenses for which we were required to reimburse our Manager pursuant to the Management Agreement. For the six months ended June 30, 2024, related party expenses included $5.5 million in management fees due to our Manager pursuant to the Management Agreement. No incentive fees were incurred for the six months ended June 30, 2024. For the six months ended June 30, 2024, related party expenses also included $2.4 million for our share of allocable general and administrative expenses for which we were required to reimburse our Manager pursuant to the Management Agreement. The decrease in management fees for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily relates to a decrease in our weighted average stockholders’ equity for the six months ended June 30, 2025 as a result of realized losses on loans and the sale of real estate owned. The decrease in allocable general and administrative expenses due to our Manager for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 relates to changes in the mix of employees of our Manager that allocated time to us year over year.
Current wording
For the three months ended September 30, 2025, related party expenses included $2.4 million in management fees due to our Manager pursuant to the Management Agreement. No incentive fees were incurred for the three months ended September 30, 2025. For the three months ended September 30, 2025, related party expenses also included $0.8 million for our share of allocable general and administrative expenses for which we were required to reimburse our Manager pursuant to the Management Agreement. For the three months ended September 30, 2024, related party expenses included $2.7 million in management fees due to our Manager pursuant to the Management Agreement. No incentive fees were incurred for the three months ended September 30, 2024. For the three months ended September 30, 2024, related party expenses also included $0.9 million for our share of allocable general and administrative expenses for which we were required to reimburse our Manager pursuant to the Management Agreement. The decrease in management fees for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily relates to a decrease in our weighted average stockholders’ equity for the three months ended September 30, 2025 as a result of realized losses on loans and the sale of real estate owned. The decrease in allocable general and administrative expenses due to our Manager for the three months ended September 30,
Previous wording
For the three months ended June 30, 2025, related party expenses included $2.4 million in management fees due to our Manager pursuant to the Management Agreement. No incentive fees were incurred for the three months ended June 30, 2025. For the three months ended June 30, 2025, related party expenses also included $1.0 million for our share of allocable general and administrative expenses for which we were required to reimburse our Manager pursuant to the Management Agreement. For the three months ended June 30, 2024, related party expenses included $2.7 million in management fees due to our Manager pursuant to the Management Agreement. No incentive fees were incurred for the three months ended June 30, 2024. For the three months ended June 30, 2024, related party expenses also included $1.3 million for our share of allocable general and administrative expenses for which we were required to reimburse our Manager pursuant to the Management Agreement. The decrease in management fees for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 primarily relates to a decrease in our weighted average stockholders’ equity for the three months ended June 30, 2025 as a result of realized losses on loans and the sale of real estate owned. The decrease in allocable general and administrative expenses due to our Manager for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 relates to changes in the mix of employees of our Manager that allocated time to us year over year.
Current wording
For the nine months ended September 30, 2025, related party expenses included $7.4 million in management fees due to our Manager pursuant to the Management Agreement. No incentive fees were incurred for the nine months ended September 30, 2025. For the nine months ended September 30, 2025, related party expenses also included $2.8 million for our share of allocable general and administrative expenses for which we were required to reimburse our Manager pursuant to the Management Agreement. For the nine months ended September 30, 2024, related party expenses included $8.1 million in management fees due to our Manager pursuant to the Management Agreement. No incentive fees were incurred for the nine months ended September 30, 2024. For the nine months ended September 30, 2024, related party expenses also included $3.3 million for our share of allocable general and administrative expenses for which we were required to reimburse our Manager pursuant to the Management Agreement. The decrease in management fees for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily relates to a decrease in our weighted average stockholders’ equity for the nine months ended September 30, 2025 as a result of realized losses on loans and the sale of real estate owned. The decrease in allocable general and administrative expenses due to our Manager for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 relates to changes in the mix of employees of our Manager that allocated time to us year-over-year.
Previous wording
For the six months ended June 30, 2025 and 2024, professional fees were $1.6 million and $1.3 million, respectively. The increase in professional fees for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily relates to an increase in our use of third-party professionals due to changes in transaction activity year over year. For the six months ended June 30, 2025 and 2024, general and administrative expenses were $3.7 million and $4.0 million, respectively. The decrease in general and administrative expenses for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily relates to a decrease in stock-based compensation expense due to a reduction in the weighted average grant date fair value for restricted stock and restricted stock unit awards granted after June 30, 2024.
Current wording
For the three months ended September 30, 2025 and 2024, professional fees were $0.5 million and $0.7 million, respectively. The decrease in professional fees for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily relates to a decrease in our use of third-party professionals due to changes in transaction activity year-over-year. For the three months ended September 30, 2025 and 2024, general and administrative expenses were $1.7 million and $1.9 million, respectively. The decrease in general and administrative expenses for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily relates to a decrease in stock-based compensation expense due to a reduction in the weighted average grant date fair value for restricted stock and restricted stock unit awards granted after September 30, 2024.
Previous wording
For the three months ended June 30, 2025 and 2024, professional fees were $0.7 million and $0.8 million, respectively. The decrease in professional fees for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 primarily relates to an decrease in our use of third-party professionals due to changes in transaction activity year over year. For both the three months ended June 30, 2025 and 2024, general and administrative expenses were $2.0 million.
Current wording
For the nine months ended September 30, 2025 and 2024, professional fees were $2.1 million and $2.0 million, respectively, which was relatively consistent year-over-year. For the nine months ended September 30, 2025 and 2024, general and administrative expenses were $5.4 million and $6.0 million, respectively. The decrease in general and administrative expenses for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily relates to a decrease in stock-based compensation expense due to a reduction in the weighted average grant date fair value for restricted stock and restricted stock unit awards granted after September 30, 2024.
Previous wording
For thethree and six months ended June 30, 2025 and 2024, expenses from real estate owned were comprised of the following ($ in thousands):
Current wording
For thethree and nine months ended September 30, 2025 and 2024, expenses from real estate owned were comprised of the following ($ in thousands):
Previous wording
For both the three months ended June 30, 2025 and 2024, mixed-use property operating expenses were $1.1 million. For the six months ended June 30, 2025 and 2024, mixed-use property operating expenses were $2.3 million and $2.1 million, respectively. Mixed-use property operating expenses consisted primarily of expenses incurred in the day-to-day operation of our mixed-use property, including common area maintenance costs, property taxes and insurance. Common area maintenance costs include items such as maintenance and repairs, utilities, janitorial services, security and property management fees. The increase in mixed-use property operating expenses for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 is primarily due to an increase in insurance costs.
Current wording
For both the three months ended September 30, 2025 and 2024, mixed-use property operating expenses were $1.2 million. For the nine months ended September 30, 2025 and 2024, mixed-use property operating expenses were $3.5 million and $3.4 million, respectively, which was relatively consistent year-over-year. Mixed-use property operating expenses consisted primarily of expenses incurred in the day-to-day operation of our mixed-use property, including common area maintenance costs, property taxes and insurance. Common area maintenance costs include items such as maintenance and repairs, utilities, janitorial services, security and property management fees.
Previous wording
For the three and six months ended June 30, 2025, office property operating expenses were $1.3 million and $2.4 million, which consists of operating expenses for our multi-building office property, which was acquired on September 19, 2024. For both the three and six months ended June 30, 2024, office property operating expenses were $0.1 million, which consisted of operating expenses for our office property, which was acquired on June 12, 2024 and sold on November 15, 2024. Office property operating expenses consisted primarily of expenses incurred in the day-to-day operation of our office properties, including common area maintenance costs, property taxes and insurance. Common area maintenance costs include items such as maintenance and repairs, utilities, janitorial services, security and property management fees.
Current wording
For the three and nine months ended September 30, 2025, office property operating expenses were $1.3 million and $3.7 million, respectively, which consisted of operating expenses for our multi-building office property that was acquired on September 19, 2024. For the three and nine months ended September 30, 2024, office property operating expenses were $0.8 million and $0.9 million, respectively, which consisted of operating expenses for our office property that was acquired on June 12, 2024 and sold on November 15, 2024 and our multi-building office property that was acquired on September 19, 2024. Office property operating expenses consisted primarily of expenses incurred in the day-to-day operation of our office properties, including common area maintenance costs, property taxes and insurance. Common area maintenance costs include items such as maintenance and repairs, utilities, janitorial services, security and property management fees. The increase in office property operating expenses for the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024 is primarily due to the three and nine months ended September 30, 2024 only including operating expenses related to the multi-building office property for the period September 19, 2024 to September 30, 2024 as we did not acquire legal title to the multi-building office property until September 19, 2024.
Previous wording
For the three and six months ended June 30, 2025, depreciation and amortization expense was $2.2 million and $4.4 million, respectively, and relate primarily to our mixed-use property acquired on September 8, 2023 and our office property acquired on September 19, 2024. For the three and six months ended June 30, 2024, depreciation and amortization expense was $1.0 million and $2.0 million, respectively, and relate primarily to our mixed-use property acquired on September 8, 2023. The increase in depreciation and amortization expense for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024 is primarily due to the three and six months ended June 30, 2024 only including depreciation and amortization expense related to the mixed-use property as we did not acquire legal title to the office property until September 19, 2024.
Current wording
For the three and nine months ended September 30, 2025, depreciation and amortization expense was $2.0 million and $6.4 million, respectively, and relate primarily to our mixed-use property acquired on September 8, 2023 and our multi-building office property acquired on September 19, 2024. For the three and nine months ended September 30, 2024, depreciation and amortization expense was $1.2 million and $3.2 million, respectively, and relate primarily to our mixed-use property acquired on September 8, 2023 and our multi-building office property acquired on September 19, 2024. The increase in depreciation and amortization expense for the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024 is primarily due to the three and nine months ended September 30, 2024 only including depreciation and amortization expense related to the multi-building office property for the period September 19, 2024 to September 30, 2024 as we did not acquire legal title to the multi-building office property until September 19, 2024.
Previous wording
For the three months ended June 30, 2025 and 2024, the (provision for) reversal of current expected credit losses, net was $20.2 million and $2.4 million, respectively. For the three months ended June 30, 2025, the net reversal of current expected credit losses is primarily due to a realized loss on an office (life sciences) loan, resulting in a reversal of the associated CECL Reserve, shorter average remaining loan term, loan repayments and other loan-specific attributes during the three months ended June 30, 2025. These factors were partially offset by a relative decline in the near-term macroeconomic forecasts, including higher tariffs, high inflation and interest rates, and other loan-specific attributes during the three months ended June 30, 2025. For the three months ended June 30, 2024, the net reversal of current expected credit losses was primarily due to a realized loss on a risk rated “5” loan, resulting in a reversal of the associated CECL Reserve, and shorter average remaining loan term during the three months ended June 30, 2024. These factors were partially offset by an increase in the CECL Reserves for risk rated “4” and “5” loans in the portfolio as a result of the impact of the current macroeconomic environment, including high inflation and interest rates, volatility and reduced liquidity in the office sector and other loan-specific attributes during the three months ended June 30, 2024.
Current wording
For the three months ended September 30, 2025 and 2024, the (provision for) reversal of current expected credit losses, net was $2.2 million and $(7.5) million, respectively. For the three months ended September 30, 2025, the net reversal of current expected credit losses is primarily due to a realized loss on an office loan, resulting in a reversal of the associated CECL Reserve, shorter average remaining loan term, loan repayments, a relative improvement in the near-term macroeconomic forecasts and other loan-specific attributes during the three months ended September 30, 2025. These factors were partially offset by new loan closings and other loan-specific attributes during the three months ended September 30, 2025. For the three months ended September 30, 2024, the provision for current expected credit losses was primarily due to an increase in the CECL Reserve for risk rated “5” loans in the portfolio as a result of the impact of the current macroeconomic environment, including higher inflation and interest rates, and more particularly, volatility and reduced liquidity in the office sector and other loan-specific attributes during the three months ended September 30, 2024. These factors were partially offset by a realized loss on a risk rated “5” loan, resulting in a reversal of the associated CECL Reserve, shorter average remaining loan term and loan repayments during the three months ended September 30, 2024.
Previous wording
For the six months ended June 30, 2025 and 2024, the (provision for) reversal of current expected credit losses, net was $25.5 million and $24.6 million, respectively. For the six months ended June 30, 2025, the net reversal of current expected credit losses is primarily due to a realized loss on an office (life sciences) loan, resulting in a reversal of the associated CECL Reserve, shorter average remaining loan term, loan repayments and other loan-specific attributes during the six months ended June 30, 2025. These factors were partially offset by a relative decline in the near-term macroeconomic forecasts, including higher tariffs, high inflation and interest rates, and other loan-specific attributes during the six months ended June 30, 2025. For the six months ended June 30, 2024, the net reversal of current expected credit losses was primarily due to realized losses on three risk rated “5” loans, resulting in a reversal of the associated CECL Reserves, shorter average remaining loan term and loan repayments during the six months ended June 30, 2024. These factors were partially offset by an increase in the CECL Reserves for risk rated “4” and “5” loans in the portfolio as a result of the impact of the current macroeconomic environment, including high inflation and interest rates, volatility and reduced liquidity in the office sector and other loan-specific attributes during the six months ended June 30, 2024.
Current wording
For the nine months ended September 30, 2025 and 2024, the (provision for) reversal of current expected credit losses, net was $27.7 million and $17.2 million, respectively. For the nine months ended September 30, 2025, the net reversal of current expected credit losses is primarily due to realized losses on two office loans, resulting in a reversal of the associated CECL Reserve, shorter average remaining loan term, loan repayments, a relative improvement in the near-term macroeconomic forecasts and other loan-specific attributes during the nine months ended September 30, 2025. These factors were partially offset by new loan closings and other loan-specific attributes during the nine months ended September 30, 2025. For the nine months ended September 30, 2024, the net reversal of current expected credit losses was primarily due to realized losses on four risk rated “5” loans, resulting in a reversal of the associated CECL Reserve, shorter average remaining loan term and loan repayments during the nine months ended September 30, 2024. These factors were partially offset by an increase in the CECL Reserve for risk rated “4” and “5” loans in the portfolio as a result of the impact of the current macroeconomic environment, including higher inflation and interest rates, and more particularly, volatility and reduced liquidity in the office sector and other loan-specific attributes during the nine months ended September 30, 2024.
Previous wording
In December 2023, we entered into a sale agreement with a third party to sell a senior mortgage loan with outstanding principal of $37.9 million, which was collateralized by a mixed-use property located in California. As of December 31, 2023, the sale had not yet closed and the loan was reclassified from held for investment to held for sale and was carried at the lower of carrying value or fair value in our consolidated balance sheets. We recognized an unrealized loss of $1.0 million in our consolidated statements of operations upon reclassifying the loan to held for sale as the carrying value of the senior mortgage loan exceeded fair value as determined by the agreed upon sale price of the loan and loan reserves. In January 2024, we closed the sale of the senior mortgage loan. At the time of the sale, the senior mortgage loan was in maturity default due to the failure of the borrower to repay the outstanding principal balance of the loan by the March 2023 maturity date. This $1.0 million unrealized loss was realized during the six months ended June 30, 2024.
Current wording
In December 2023, we entered into a sale agreement with a third party to sell a senior mortgage loan with outstanding principal of $37.9 million, which was collateralized by a mixed-use property located in California. As of December 31, 2023, the sale had not yet closed and the loan was reclassified from held for investment to held for sale and was carried at the lower of carrying value or fair value in our consolidated balance sheets. We recognized an unrealized loss of $1.0 million in our consolidated statements of operations upon reclassifying the loan to held for sale as the carrying value of the senior mortgage loan exceeded fair value as determined by the agreed upon sale price of the loan and loan reserves. In January 2024, we closed the sale of the senior mortgage loan. At the time of the sale, the senior mortgage loan was in maturity default due to the failure of the borrower to repay the outstanding principal balance of the loan by the March 2023 maturity date. This $1.0 million unrealized loss was realized during the nine months ended September 30, 2024.
Previous wording
In February 2024, we received a discounted payoff on a senior mortgage loan with outstanding principal of $18.8 million, which was collateralized by a multifamily property located in Washington. The discounted payoff was received in conjunction with a sale of the multifamily property by the borrower. At the time of the discounted payoff, the senior mortgage loan was in default due to the failure of the borrower to repay the outstanding principal balance of the loan by the September 2023 maturity date. For the six months ended June 30, 2024, we recognized a realized loss of $1.7 million in our consolidated statements of operations upon the payoff of the senior mortgage loan as the carrying value exceeded the net proceeds from the payoff of the loan.
Current wording
In February 2024, we received a discounted payoff on a senior mortgage loan with outstanding principal of $18.8 million, which was collateralized by a multifamily property located in Washington. The discounted payoff was received in conjunction with a sale of the multifamily property by the borrower. At the time of the discounted payoff, the senior mortgage loan was in default due to the failure of the borrower to repay the outstanding principal balance of the loan by the September 2023 maturity date. For the nine months ended September 30, 2024, we recognized a realized loss of $1.7 million in our consolidated statements of operations upon the payoff of the senior mortgage loan as the carrying value exceeded the net proceeds from the payoff of the loan.
Previous wording
In March 2024, we received a discounted payoff on a senior mortgage loan with outstanding principal of $56.9 million, which was collateralized by an office property located in Illinois. The discounted payoff was received in conjunction with a sale of the office property by the borrower. At the time of the discounted payoff, the senior mortgage loan was in default due to the failure of the borrower to repay the outstanding principal balance of the loan by the February 2024 maturity date. For the six months ended June 30, 2024, we recognized a realized loss of $43.1 million in our consolidated statements of operations upon the payoff of the senior mortgage loan as the carrying value exceeded the net proceeds from the payoff of the loan.
Current wording
In March 2024, we received a discounted payoff on a senior mortgage loan with outstanding principal of $56.9 million, which was collateralized by an office property located in Illinois. The discounted payoff was received in conjunction with a sale of the office property by the borrower. At the time of the discounted payoff, the senior mortgage loan was in default due to the failure of the borrower to repay the outstanding principal balance of the loan by the February 2024 maturity date. For the nine months ended September 30, 2024, we recognized a realized loss of $43.1 million in our consolidated statements of operations upon the payoff of the senior mortgage loan as the carrying value exceeded the net proceeds from the payoff of the loan.
Previous wording
In June 2024, we acquired legal title to an office property located in California through a foreclosure. The office property previously collateralized a $33.2 million senior mortgage loan held by us that was in maturity default due to the failure of the borrower to repay the outstanding principal balance of the loan by the December 2023 maturity date. In conjunction with the foreclosure, we derecognized the $33.2 million senior mortgage loan and recognized the office property as real estate owned. As we expected to complete a sale of the office property within the next twelve months, the office property was classified as real estate owned held for sale and was carried at its estimated fair value at acquisition, less costs to sell. For both the three and six months ended June 30, 2024, we recognized a realized loss of $16.4 million in our consolidated statements of operations on the derecognition of the senior mortgage loan as the estimated fair value less costs to sell of the office property of $14.5 million and the net operating assets and liabilities held at the office property of $(0.1) million at acquisition was less than the $30.8 million cost basis of the senior mortgage loan.
Current wording
In June 2024, we acquired legal title to an office property located in California through a foreclosure. The office property previously collateralized a $33.2 million senior mortgage loan held by us that was in maturity default due to the failure of the borrower to repay the outstanding principal balance of the loan by the December 2023 maturity date. In conjunction with the foreclosure, we derecognized the $33.2 million senior mortgage loan and recognized the office property as real estate owned. As we expected to complete a sale of the office property within the next twelve months, the office property was classified as real estate owned held for sale and was carried at its estimated fair value at acquisition, less costs to sell. For the nine months ended September 30, 2024, we recognized a realized loss of $16.4 million in our consolidated statements of operations on the derecognition of the senior mortgage loan as the estimated fair value less costs to sell of the office property of $14.5 million and the net operating assets and liabilities held at the office property of $(0.1) million at acquisition was less than the $30.8 million cost basis of the senior mortgage loan.
Previous wording
In June 2025, we received a discounted payoff on a senior mortgage loan with outstanding principal of $51.5 million, which was collateralized by an office (life sciences) property located in Massachusetts. The discounted payoff was received in conjunction with a sale of the office (life sciences) property by the borrower. For both the three and six months ended June 30, 2025, we recognized a realized loss of $33.0 million in our consolidated statements of operations upon the payoff of the senior mortgage loan as the carrying value exceeded the net proceeds from the payoff of the loan.
Current wording
In June 2025, we received a discounted payoff on a senior mortgage loan with outstanding principal of $51.5 million, which was collateralized by an office (life sciences) property located in Massachusetts. The discounted payoff was received in conjunction with a sale of the office (life sciences) property by the borrower. For the nine months ended September 30, 2025, we recognized a realized loss of $33.0 million in our consolidated statements of operations upon the payoff of the senior mortgage loan as the carrying value exceeded the net proceeds from the payoff of the loan.
Previous wording
As described above, the sale of the senior mortgage loan with outstanding principal of $37.9 million, which was collateralized by a mixed-use property located in California, had not yet closed as of December 31, 2023. As such, we recognized an unrealized loss of $1.0 million in our consolidated statements of operations upon reclassifying the loan to held for sale for the year ended December 31, 2023. In January 2024, we closed the sale of the senior mortgage loan and the $1.0 million unrealized loss related to this senior mortgage loan for the year ended December 31, 2023 was realized during the six months ended June 30, 2024.
Current wording
As described above, the sale of the senior mortgage loan with outstanding principal of $37.9 million, which was collateralized by a mixed-use property located in California, had not yet closed as of December 31, 2023. As such, we recognized an unrealized loss of $1.0 million in our consolidated statements of operations upon reclassifying the loan to held for sale for the year ended December 31, 2023. In January 2024, we closed the sale of the senior mortgage loan and the $1.0 million unrealized loss related to this senior mortgage loan for the year ended December 31, 2023 was realized during the nine months ended September 30, 2024.
Previous wording
As of July 31, 2025, we had approximately $129 million in liquidity including $45 million of cash and $84 million of availability under our Secured Funding Agreements.
Current wording
As of November 4, 2025, we had approximately $131 million in liquidity including $76 million of cash, which includes restricted amounts that are available to repay collateralized loan obligation securitization debt, and $55 million of availability under our Secured Funding Agreements.
Previous wording
The following table sets forth changes in cash, cash equivalents and restricted cash for the six months ended June 30, 2025 and 2024 ($ in thousands):
Current wording
The following table sets forth changes in cash, cash equivalents and restricted cash for the nine months ended September 30, 2025 and 2024 ($ in thousands):
Previous wording
During the six months ended June 30, 2025 and 2024, cash, cash equivalents and restricted cash increased (decreased) by $27.8 million and $(39.8) million, respectively.
Current wording
During the nine months ended September 30, 2025 and 2024, cash, cash equivalents and restricted cash increased (decreased) by $57.6 million and $(38.1) million, respectively.
Previous wording
For the six months ended June 30, 2025 and 2024, net cash provided by operating activities totaled $12.9 million and $20.0 million, respectively. For the six months ended June 30, 2025, adjustments to net income (loss) related to operating activities primarily included the net reversal of current expected credit losses of $25.5 million, accretion of discounts, deferred loan origination fees and costs of $2.0 million, amortization of deferred financing costs of $2.4 million and realized losses on loans of $33.0 million. For the six months ended June 30, 2024, adjustments to net income (loss) related to operating activities primarily included the net reversal of current expected credit losses of $24.6 million, accretion of discounts, deferred loan origination fees and costs of $2.5 million, amortization of deferred financing costs of $2.4 million, change in other assets of $1.4 million and realized losses on loans of $62.1 million.
Current wording
For the nine months ended September 30, 2025 and 2024, net cash provided by operating activities totaled $16.7 million and $28.5 million, respectively. For the nine months ended September 30, 2025, adjustments to net income (loss) related to operating activities primarily included the net reversal of current expected credit losses of $27.7 million, accretion of discounts, deferred loan origination fees and costs of $3.2 million, amortization of deferred financing costs of $3.6 million, depreciation and amortization of real estate owned of $6.5 million and realized losses on loans of $34.6 million. For the nine months ended September 30, 2024, adjustments to net income (loss) related to operating activities primarily included the net reversal of current expected credit losses of $17.2 million, accretion of discounts, deferred loan origination fees and costs of $3.7 million, amortization of deferred financing costs of $4.0 million and realized losses on loans of $67.9 million.
Previous wording
For the six months ended June 30, 2025, net cash provided by investing activities totaled $325.0 million and was primarily related to cash received from principal collections and cost-recovery proceeds on loans held for investment exceeding the cash used for the origination and funding of loans held for investment. For the six months ended June 30, 2024, net cash provided by investing activities totaled $133.7 million and was primarily related to cash received from principal collections and cost-recovery proceeds on loans held for investment and from the sale of loans held for sale exceeding the cash used for the origination and funding of loans held for investment.
Current wording
For the nine months ended September 30, 2025, net cash provided by investing activities totaled $438.2 million and was primarily related to cash received from principal collections and cost-recovery proceeds on loans held for investment exceeding the cash used for the origination and funding of loans held for investment. For the nine months ended September 30, 2024, net cash provided by investing activities totaled $255.2 million and was primarily related to cash received from principal collections and cost-recovery proceeds on loans held for investment and from the sale of loans held for sale exceeding the cash used for the origination and funding of loans held for investment.
Previous wording
For the six months ended June 30, 2025, net cash used in financing activities totaled $310.0 million and was primarily related to repayments of our Secured Funding Agreements of $61.4 million, repayments of debt of consolidated VIEs of $318.4 million, repayments of our Secured Term Loan of $20.0 million and dividends paid of $22.3 million, partially offset by proceeds from our Secured Funding Agreements of $114.8 million. For the six months ended June 30, 2024, net cash used in financing activities totaled $193.6 million and was primarily related to repayments of our Secured Funding Agreements of $26.7 million, repayments of debt of consolidated VIEs of $135.1 million, repayments of our Secured Term Loan of $10.0 million and dividends paid of $32.0 million, partially offset by proceeds from our Secured Funding Agreements of $12.8 million.
Current wording
For the nine months ended September 30, 2025, net cash used in financing activities totaled $397.3 million and was primarily related to repayments of our Secured Funding Agreements of $195.6 million, repayments of debt of consolidated VIEs of $338.3 million, repayments of our Secured Term Loan of $30.0 million and dividends paid of $30.6 million, partially offset by proceeds from our Secured Funding Agreements of $200.1 million. For the nine months ended September 30, 2024, net cash used in financing activities totaled $321.8 million and was primarily related to repayments of our Secured Funding Agreements of $113.7 million, repayments of our Notes Payable of $105.0 million, repayments of debt of consolidated VIEs of $148.7 million, repayments of our Secured Term Loan of $20.0 million and dividends paid of $45.8 million, partially offset by proceeds from our Secured Funding Agreements of $114.5 million.
Showing the first 40 of 43 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
•We closed a $12.3 million senior mortgage loan on a self storage property located in Florida.
Current report — wording carried from elsewhere
While lower market rates and increased capital markets liquidity support commercial real estate property transactions and values, uncertainty remains around proposed U.S. trade and economic policies and their potential impact to the U.S. economy. Should these economic factors become more acute, the commercial real estate market we service may be further adversely impacted.
Current report — wording carried from elsewhere
2025 compared to the three months ended September 30, 2024 relates to changes in the mix of employees of our Manager that allocated time to us year-over-year.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
•We amended the Morgan Stanley Facility to, among other things, (1) reduce the commitment from $250.0 million to $150.0 million and include an accordion provision such that the maximum commitment may be increased to up to $250.0 million at our option, subject to the satisfaction of certain conditions, including payment of an upsize fee and (2) extend the initial maturity date to July 16, 2026, subject to one 12-month extension, which may be exercised at our option assuming no existing defaults under the Morgan Stanley Facility and the applicable extension fee being paid, which, if exercised, would extend the maturity date to July 16, 2027.