InPoint Commercial Real Estate Income, Inc.

Previous wording

These forward-looking statements are not historical facts but reflect the intent, belief or current expectations of the management of InPoint Commercial Real Estate Income, Inc. (which we refer to herein as the “Company,” “we,” “our” or “us”) based on their knowledge and understanding of the business and industry, the economy and other future conditions. These statements are not guarantees of future performance, and we caution stockholders not to place undue reliance on forward-looking statements. Actual results may differ materially from those expressed or forecasted in the forward-looking statements due to a variety of risks, uncertainties and other factors, including but not limited to the factors listed and described under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on March 13, 2026 (the “Annual Report”) some of which are briefly summarized below:

Current wording

These forward-looking statements are not historical facts but reflect the intent, belief or current expectations of the management of InPoint Commercial Real Estate Income, Inc. (which we refer to herein as the “Company,” “we,” “our” or “us”) based on their knowledge and understanding of the business and industry, the economy and other future conditions. These statements are not guarantees of future performance, and we caution stockholders not to place undue reliance on forward-looking statements. Actual results may differ materially from those expressed or forecasted in the forward-looking statements due to a variety of risks, uncertainties and other factors, including but not limited to the factors listed and described under “Risk Factors” in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on March 13, 2026 (the “Annual Report”), some of which are briefly summarized below:

Previous wording

The following discussion and analysis relate to the three months ended March 31, 2026 and 2025 and as of March 31, 2026 and December 31, 2025. You should read the following discussion and analysis along with our unaudited consolidated financial statements and the related notes included in this Quarterly Report on Form 10-Q.

Current wording

The following discussion and analysis relate to the three and six months ended June 30, 2026 and 2025 and as of June 30, 2026 and December 31, 2025. You should read the following discussion and analysis along with our unaudited consolidated financial statements and the related notes included in this Quarterly Report on Form 10-Q.

Previous wording

We are a Maryland corporation formed on September 13, 2016 to originate, acquire and manage an investment portfolio of CRE investments primarily comprised of CRE debt, including primarily floating-rate first mortgage loans and fixed rate mezzanine loans. We may also invest in participations in CRE debt, floating-rate CRE securities such as CMBS, senior unsecured debt of publicly traded REITs and select equity investments in single-tenant, net leased properties. Substantially all of our business is conducted through our Operating Partnership, of which we are the sole general partner. We are externally managed by our Advisor, an indirect subsidiary of

Current wording

We are a Maryland corporation formed on September 13, 2016 to originate, acquire and manage an investment portfolio of CRE investments primarily comprised of (i) CRE debt, including primarily floating-rate first mortgage loans and fixed rate mezzanine loans, and (ii) floating-rate CRE securities, such as CMBS. We may also invest in participations in CRE debt, senior unsecured debt of publicly traded REITs and select equity investments in single-tenant, net leased properties. Substantially all of our business is conducted through our Operating Partnership, of which we are the sole general partner. We are externally managed by our Advisor, an indirect subsidiary of IREIC. Our Advisor has engaged the Sub-Advisor, a subsidiary of Sound Point CRE Management, LP, to perform certain services on behalf of the Advisor for us.

Previous wording

During the first quarter of 2026, we originated one loan with a principal balance of $11.4 million and received paydowns of $25.9 million on existing loans. In May 2026, we originated a first mortgage loan secured by an industrial property in Florida with a principal balance of $16.9 million. The loan earns interest at SOFR+3.15%, has an all-in yield of 6.8%, and an LTV of 47.9%. During the remainder of 2026, we intend to focus on originating additional loans and continue working with our current borrowers on extending or restructuring our maturing loans with an emphasis on obtaining principal reductions or loan payoffs.

Current wording

During the second quarter of 2026, we originated two loans with an aggregate principal balance of $36.1 million, purchased CMBS securities with a total par value of $10.0 million and received paydowns of $59.0 million on existing loans. In July 2026, we originated a first mortgage loan secured by an industrial property in Pennsylvania with a principal balance of $11.0 million. The loan earns interest at SOFR+3.00%, has an all-in yield of 6.7%, and an LTV of 70.0%. In August 2026, we originated a first mortgage loan secured by an industrial property in Arizona with a principal balance of $20.0 million. The loan earns interest at SOFR+2.70%, has an all-in yield of 6.4%, and an LTV of 74.9%. During the remainder of 2026, we intend to focus on originating additional loans and continue working with our current borrowers on extending or restructuring our maturing loans with an emphasis on obtaining principal reductions or loan payoffs.

Previous wording

The Company’s management has been analyzing the portfolio impact of liquidating the real estate in the portfolio and potentially redeploying those proceeds into newly originated first mortgage loans. The Company’s goal is to position the portfolio to pursue a future strategic transaction when capital market conditions have improved, in order to maximize stockholder value and potentially provide our investors with access to some level of liquidity. There is no assurance that the Company will be able to successfully implement any strategic plan. We are continually impacted by evolving market conditions and other complex factors such as (i) the state of the commercial real estate market and financial markets, (ii) our ability to access additional capital or leverage and (iii) changes in general economic conditions such as high interest rates, among other factors. We will provide updates as the Company considers appropriate or as required under applicable law.

Current wording

The Company’s management has been redeploying proceeds from the payoff of legacy loans into newly originated first mortgage loans. The Company’s goal is to position the portfolio to pursue a future strategic transaction when capital market conditions have improved, in order to maximize stockholder value and potentially provide our investors with access to some level of liquidity. There is no assurance that the Company will be able to successfully implement any strategic plan. We are continually impacted by evolving market conditions and other complex factors such as (i) the state of the commercial real estate market and financial markets, (ii) our ability to access additional capital or leverage and (iii) changes in general economic conditions such as high interest rates, among other factors. We will provide updates as the Company considers appropriate or as required under applicable law.

Previous wording

Net loss attributable to common stockholders was $5.6 million, or $0.56 per share, during the three months ended March 31, 2026, which included $4.9 million in provision for credit losses.

Current wording

Net loss attributable to common stockholders was $4.0 million, or $0.39 per share, during the three months ended June 30, 2026, which included $0.8 million in provision for credit losses and a $2.5 million impairment loss on the Parkview property.

Previous wording

During the first quarter of 2026, we declared gross distributions at an annual rate of $1.25 per common share, which represents an annualized rate of 9.3% on our aggregate NAV of $13.4992 as of March 31, 2026. Holders of Class D and Class T shares of common stock received less than the gross distribution amount after the deduction of stockholder servicing fees applicable to those classes.

Current wording

During the second quarter of 2026, we declared gross distributions at an annual rate of $1.25 per common share, which represents an annualized rate of 9.4% on our aggregate NAV of $13.2318 as of June 30, 2026. Holders of Class D and Class T shares of common stock received less than the gross distribution amount after the deduction of stockholder servicing fees applicable to those classes.

Previous wording

We originated one floating-rate loan with initial funding of $11.4 million during the three months ended March 31, 2026.

Current wording

We originated two floating-rate loans with initial funding of $36.1 million during the three months ended June 30, 2026.

Previous wording

Our loan portfolio decreased 5.5% to $328.8 million during the three months ended March 31, 2026. The decrease includes $25.9 million in loan repayments and $4.9 million of provision for credit losses, partially offset by origination of one loan with an outstanding principal balance of $11.4 million.

Current wording

Our loan portfolio decreased 7.1% to $305.4 million during the three months ended June 30, 2026. The decrease includes $59.0 million in loan repayments and $0.8 million of provision for credit losses, partially offset by origination of two loans with an outstanding principal balance of $36.1 million.

Previous wording

All 15 of our loans were current on their contractual interest payments during the three months ended March 31, 2026.

Current wording

All 14 of our loans were current on their contractual interest payments during the three months ended June 30, 2026.

Previous wording

We had net repayments of $8.3 million on our repurchase agreements during the three months ended March 31, 2026.

Current wording

We had net repayments of $35.6 million on our repurchase agreements during the three months ended June 30, 2026.

Previous wording

Our strategy is to originate, acquire and manage an investment portfolio of CRE debt that is primarily floating rate and diversified based on the type and location of collateral securing the underlying CRE debt.

Current wording

Our strategy is to originate, acquire and manage an investment portfolio of CRE debt and CRE securities that is primarily floating rate and diversified based on the type and location of collateral securing the underlying CRE debt and CRE securities.

Previous wording

The charts below summarize our debt investments portfolio as a percentage of par value by type of rate, our total investment portfolio by investment type, including real estate owned (“REO”) and our loan portfolio by collateral type and geographical region as of March 31, 2026 and December 31, 2025:

Current wording

The charts below summarize our debt and securities investments portfolio as a percentage of par value by type of rate, our total investment portfolio by investment type, including real estate owned (“REO”) and our loan portfolio by collateral type and geographical region as of June 30, 2026 and December 31, 2025:

Previous wording

The changes in our loan portfolio by property type and by region as of March 31, 2026 compared to December 31, 2025 were primarily due to the origination of one loan and the repayment of loans by borrowers in ordinary course.

Current wording

The changes in our loan portfolio by property type and by region as of June 30, 2026 compared to December 31, 2025 were primarily due to the origination of two loans and the repayment of loans by borrowers in ordinary course.

Previous wording

Cash coupon is the stated rate on the loan. All-in yield is the present value of all future principal and interest payments on the loan and does not include any origination fees or deferred commitment fees. The total is the weighted average of the stated yield, excluding any default interest, as of March 31, 2026. Our first mortgage loans are all floating rate and each contains a minimum SOFR floor. As of March 31, 2026, the weighted average SOFR floor was 0.42%.

Current wording

Cash coupon is the stated rate on the loan. All-in yield is the present value of all future principal and interest payments on the loan and does not include any origination fees or deferred commitment fees. The total is the weighted average of the stated yield, excluding any default interest, as of June 30, 2026. Our first mortgage loans are all floating rate and each contains a minimum SOFR floor. As of June 30, 2026, the weighted average SOFR floor was 0.70%.

Previous wording

During the quarter ended March 31, 2026, the Company reviewed the property performance and estimated the property value, noting that the valuation exceeded the outstanding loan balance. As a result, no asset-specific CECL reserve was recorded for the loan as of March 31, 2026. The loan matured on February 9, 2026 and was not repaid or extended. The Company sent the borrower a maturity default notice and began the foreclosure process. The borrower has not paid the default interest but is current on its contractual interest payments.

Current wording

The loan matured on February 9, 2026 and was not repaid or extended. The Company sent the borrower a maturity default notice and began the foreclosure process. The borrower has not paid the default interest but is current on its contractual interest payments. The Company has reviewed the loan and based on the estimated LTV recorded a $1.5 million asset-specific CECL reserve as of June 30, 2026.

Previous wording

During the quarter ended March 31, 2026, the Company reviewed the property performance and estimated the property value, noting that the valuation exceeded the outstanding loan balance. As a result, no asset-specific CECL reserve was recorded for the loan as of March 31, 2026. The loan matured on March 9, 2026 and was not repaid or extended. The Company sent the borrower a maturity default notice and the borrower is paying default interest until it completes the refinance with a third party. All-in yield for the loan includes maturity default interest received.

Current wording

The loan matured on March 9, 2026 and was not repaid or extended. The Company sent the borrower a maturity default notice and received default interest through the repayment date. All-in yield for the loan includes maturity default interest received. During the quarter ended June 30, 2026, the Company reviewed the property performance and estimated the property value, noting that the valuation exceeded the outstanding loan balance. As a result, no asset-specific CECL reserve was recorded for the loan as of June 30, 2026. The loan was repaid on July 21, 2026.

Previous wording

As of March 31, 2026 and December 31, 2025, we had borrowings under repurchase agreements totaling $215,074 and $223,397, respectively, and loan participations sold, net, of $47,715 and $47,009, respectively. During the three months ended March 31, 2026 and the year ended December 31, 2025, we had weighted average borrowings, which include borrowings under repurchase agreements and loan participations sold, net, of $227,446 and $321,492, respectively, and weighted average borrowing costs, which also include borrowings under repurchase agreements and loan participations sold, net, of 6.2% and 6.6%, respectively.

Current wording

As of June 30, 2026 and December 31, 2025, we had borrowings under repurchase agreements totaling $179,498 and $223,397, respectively, and loan participations sold, net, of $47,715 and $47,009, respectively. During the six months ended June 30, 2026 and the year ended December 31, 2025, we had weighted average borrowings, which include borrowings under repurchase agreements and loan participations sold, net, of $216,073 and $321,492, respectively, and weighted average borrowing costs, which also include borrowings under repurchase agreements and loan participations sold, net, of 6.2% and 6.6%, respectively.

Previous wording

Based on principal amount for repurchase agreements. Amounts are calculated based on the average daily balance. Loan participations sold excludes the participation interest related to the REO.

Current wording

Based on amortized cost for real estate securities and principal amount for repurchase agreements. Amounts are calculated based on the average daily balance. Loan participations sold excludes the participation interest related to the REO.

Previous wording

Interest income excludes $500 and $608 for the three months ended March 31, 2026 and 2025, respectively, related to bank deposits not included in the investment portfolio. Interest expense excludes $534 and $309 of participation payments for the three months ended March 31, 2026 and 2025, respectively, related to the REO. Interest expense also excludes $497 and zero for the three months ended March 31, 2026 and 2025, respectively, related to interest expense on the mortgage loan payable.

Current wording

Interest income excludes $515 and $328 for the three months ended June 30, 2026 and 2025, respectively, related to bank deposits not included in the investment portfolio. Interest expense excludes $537 and $312 of participation payments for the three months ended June 30, 2026 and 2025, respectively, related to the REO. Interest expense also excludes $501 and zero for the three months ended June 30, 2026 and 2025, respectively, related to interest expense on the mortgage loan payable.

Previous wording

The change in our average interest-earning assets and interest-bearing liabilities was due to origination of a new loan, the paydown of the principal balance as loans matured and the subsequent repayment of the amount financed for these loans. The change in the weighted average levered yield was primarily due to the change in the composition of the loans in the portfolio and the change in the composition of financing.

Current wording

The change in our average interest-earning assets and interest-bearing liabilities was due to origination of two new loans, the paydown of the principal balance as loans matured, purchase of real estate securities and the subsequent repayment of the amount financed for these loans. The change in the weighted average levered yield was primarily due to the change in the composition of the loans in the portfolio and the change in the composition of financing.

Previous wording

Our revenue from real estate during the three months ended March 31, 2026 and 2025, was $2,726 and $1,528, respectively. The increase in revenue was primarily due to the acquisition of two properties after the first quarter of 2025.

Current wording

Our revenue from real estate during the three months ended June 30, 2026 and 2025 was $2,985 and $1,887, respectively. The increase in revenue was primarily due to the acquisition of two properties, one in the second quarter and one in the third quarter of 2025.

Previous wording

Total operating expenses for the three months ended March 31, 2026 and 2025 were $4,431 and $3,335, respectively. The primary driver of the increase in total operating expenses was the acquisition of two properties after the first quarter of 2025.

Current wording

Total operating expenses for the three months ended June 30, 2026 and 2025 were $4,664 and $4,406, respectively. The primary driver of the increase in total operating expenses was the acquisition of two properties, one in the second quarter and one in the third quarter of 2025.

Previous wording

The amount for the three months ended March 31, 2025 is presented net of $408 in employee retention credits received during the period. These credits relate to the Renaissance O’Hare property that we owned from August 20, 2020 through September 28, 2023.

Current wording

The amount for the six months ended June 30, 2025 is presented net of $408 in employee retention credits received during the period. These credits relate to the Renaissance O’Hare property that we owned from August 20, 2020 through September 28, 2023.

Previous wording

For the three months ended March 31, 2026 and 2025, our net (loss) income was $(4,143) and $3,948, respectively. The decrease in net income was primarily due to a reduction in net interest income as the loan portfolio decreased, an increase in the CECL reserve and an increase in real estate operating expenses and depreciation and amortization, partially offset by an increase in revenue from real estate.

Current wording

For the six months ended June 30, 2026 and 2025, our net (loss) income was $(6,626) and $7,021, respectively. The decrease in net income was primarily due to a reduction in net interest income as the loan portfolio decreased, an increase in the CECL reserve, impairment loss recorded on the Parkview property and an increase in real estate operating expenses and depreciation and amortization, partially offset by an increase in revenue from real estate.

Previous wording

We use Funds from Operations (“FFO”), a widely accepted metric, to evaluate our performance. FFO provides a supplemental measure to compare our performance and operations to other REITs. Due to certain unique operating characteristics of real estate companies, the National Association of Real Estate Investment Trusts (“NAREIT”) has promulgated a standard known as FFO, which it believes more accurately reflects the operating performance of a REIT. As defined by NAREIT, FFO means net income (loss) attributable to common stockholders computed in accordance with GAAP, excluding gains (or losses) from sales of operating property, plus depreciation and amortization and after adjustments for unconsolidated entities. In addition, NAREIT has further clarified the FFO definition to add-back impairment write-downs of depreciable real estate or of investments in unconsolidated entities that are driven by measurable decreases in the fair value of depreciable real estate and to exclude the earnings impacts of cumulative effects of accounting changes. We have adopted the NAREIT definition for computing FFO.

Current wording

National Association of Real Estate Investment Trusts (“NAREIT”) has promulgated a standard known as FFO, which it believes more accurately reflects the operating performance of a REIT. As defined by NAREIT, FFO means net income (loss) attributable to common stockholders computed in accordance with GAAP, excluding gains (or losses) from sales of operating property, plus depreciation and amortization and after adjustments for unconsolidated entities. In addition, NAREIT has further clarified the FFO definition to add-back impairment write-downs of depreciable real estate or of investments in unconsolidated entities that are driven by measurable decreases in the fair value of depreciable real estate and to exclude the earnings impacts of cumulative effects of accounting changes. We have adopted the NAREIT definition for computing FFO.

Previous wording

The majority of our investments consist of CRE loans intended to be held to maturity. We may also invest in real estate and other real estate-related assets and liquid non-real estate-related assets. Real estate-related assets include CRE securities, such as CMBS and CRE CLOs, and unsecured debt of publicly traded REITs. Our liquid non-real estate-related assets may include credit rated government and corporate debt securities, publicly traded equity securities and cash and cash equivalents.

Current wording

The majority of our investments consist of CRE loans intended to be held to maturity. We also invest in real estate and other real estate-related assets and liquid non-real estate-related assets. Real estate-related assets include CRE securities, such as CMBS and CRE CLOs, and unsecured debt of publicly traded REITs. Our liquid non-real estate-related assets may include credit rated government and corporate debt securities, publicly traded equity securities and cash and cash equivalents.

Previous wording

Real Estate-Related Securities and Derivatives. Our real estate-related securities investments will generally focus on non-distressed public and private real estate debt, including, but not limited to, CMBS and other forms of debt. Additionally, we may make open market purchases of common stock in public equity REITs. We may also invest in derivatives. Our principal investments in derivative instruments may include investments in interest rate swaps, interest rate cap or floor contracts, futures or forward contracts, options or repurchase agreements. Our real estate-related securities and derivative investments are recorded at fair market value in our financial statements, in accordance with ASC Topic 820. The valuation of these assets is obtained from market quotations obtained from third-party pricing service providers or broker-dealers. Pursuant to the valuation guidelines adopted by our Board, if market quotations are not readily available (or are otherwise not reliable for a particular investment), the fair value is determined in good faith by our Advisor. Due to the inherent uncertainty of these estimates, estimates of fair value may differ from the values that would have been used had a ready market for these investments existed and the differences could be material. Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information, bid/ask information, or broker-dealer quotations). Our Board has delegated to our Advisor the responsibility for monitoring significant events that may materially affect the values of our real estate-related securities and derivative investments and for determining whether the value of the applicable investments should be reevaluated in light of such significant events.

Current wording

Real Estate-Related Securities and Derivatives. Our real estate-related securities investments generally focus on non-distressed public and private real estate debt, including, but not limited to, CMBS and other forms of debt. Additionally, we may make open market purchases of common stock in public equity REITs. We may also invest in derivatives. Our principal investments in derivative instruments may include investments in interest rate swaps, interest rate cap or floor contracts, futures or forward contracts, options or repurchase agreements. Our real estate-related securities and derivative investments are recorded at fair market value in our financial statements, in accordance with ASC Topic 820. The valuation of these assets is obtained from market quotations obtained from third-party pricing service providers or broker-dealers. Pursuant to the valuation guidelines adopted by our Board, if market quotations are not readily available (or are otherwise not reliable for a particular investment), the fair value is determined in good faith by our Advisor. Due to the inherent uncertainty of these estimates, estimates of fair value may differ from the values that would have been used had a ready market for these investments existed and the differences could be material. Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information, bid/ask information, or broker-dealer quotations). Our Board has delegated to our Advisor the responsibility for monitoring significant events that may materially affect the values of our real estate-related securities and derivative investments and for determining whether the value of the applicable investments should be reevaluated in light of such significant events.

Previous wording

Our primary sources of funds for liquidity consist of net cash provided by operating activities, repayments of our outstanding loans by borrowers, proceeds from repurchase agreements and other financing arrangements and potential future issuances of equity and/or debt securities. As of March 31, 2026, we had $80 million in unrestricted cash, $311 million in available capacity on our borrowing facilities and $20 million in available borrowing capacity from our revolving credit letter agreements with IREIC and Sound Point.

Current wording

Our primary sources of funds for liquidity consist of net cash provided by operating activities, repayments of our outstanding loans by borrowers, proceeds from repurchase agreements and other financing arrangements and potential future issuances of equity and/or debt securities. As of June 30, 2026, we had $53 million in unrestricted cash, $347 million in available capacity on our borrowing facilities and $20 million in available borrowing capacity from our revolving credit letter agreements with IREIC and Sound Point.

Previous wording

We experienced a net increase in cash and cash equivalents and restricted cash of $3,521 for the three months ended March 31, 2026 compared to a net decrease of $5,426 for the three months ended March 31, 2025. During the three months ended March 31, 2026, we funded $11,400 on a new loan, received $25,916 in principal payments from our loans, received $8,550 from repurchase agreements, paid down $16,873 on repurchase agreements and paid distributions of $4,648.

Current wording

We experienced a net decrease in cash and cash equivalents and restricted cash of $22,907 for the six months ended June 30, 2026 compared to a net decrease of $37,524 for the six months ended June 30, 2025. During the six months ended June 30, 2026, we funded $47,550 on new loans, received $84,932 in principal payments from our loans, received $21,187 from repurchase agreements, paid down $65,086 on repurchase agreements, purchased $9,983 of CMBS, and paid distributions of $9,297.

Previous wording

On May 6, 2019, we, through our wholly owned subsidiary, entered into an uncommitted master repurchase agreement (the “JPM Repo Facility”) with JPMorgan Chase Bank, National Association (“JPM”). The JPM Repo Facility provides up to $150,000 in advances that we expect to use to finance the acquisition or origination of eligible loans and participation interests therein. Advances made prior to December 2021 under the JPM Repo Facility accrue interest at per annum rates equal to the sum of (i) the applicable LIBOR index rate plus (ii) a margin of between 1.75% to 2.50% with no floor, depending on the attributes of the purchased assets. Advances made subsequent to December 2021 under the JPM Repo Facility accrue interest at per annum rates equal to the sum of SOFR plus an agreed upon margin. As of March 31, 2026, all of the advances made under the JPM Repo Facility were indexed to SOFR and have margins between 1.85% and 2.50% with a floor between 0.00% and 3.00%. In May 2022, the maturity date of the JPM Repo Facility was extended to May 6, 2023. On May 5, 2023, we entered into an amendment that extended the maturity date to May 6, 2026, with the option to extend the maturity date further to May 6, 2028 subject to two optional one-year extensions. The amendment also increased the maximum facility amount to $526,076. On May 5, 2026, we exercised our option to extend the maturity date to May 6, 2027. The JPM Repo Facility is subject to certain financial covenants. We were in compliance with all financial covenant requirements as of March 31, 2026 and December 31, 2025.

Current wording

We have an uncommitted master repurchase agreement (the “JPM Repo Facility”) with JPMorgan Chase Bank, National Association with a maximum facility amount of $526,076 that we expect to use to finance the acquisition or origination of eligible loans and participation interests therein. Advances under the JPM Repo Facility accrue interest at per annum rates equal to the sum of SOFR plus an agreed upon margin. As of June 30, 2026, advances made under the JPM Repo Facility had margins between 1.80% and 2.50% with a SOFR floor between 0.00% and 3.00%. On May 5, 2026, we exercised our option to extend the maturity date to May 6, 2027. We have the option to extend the maturity date further to May 6, 2028. The JPM Repo Facility is subject to certain financial covenants. We were in compliance with all financial covenant requirements as of June 30, 2026 and December 31, 2025.

Previous wording

On September 30, 2025, we entered into a mortgage loan agreement with Ladder Capital Finance LLC for an aggregate principal amount of $24,500. The mortgage loan is collateralized by the Arbor Mist property. As of March 31, 2026, we had $24,500 outstanding under the mortgage loan. The mortgage loan bears interest at a rate equal to the greater of (a) SOFR plus 2.95% or (b) a floor rate of 6.20% per annum. The mortgage loan requires interest-only payments until the maturity date, at which point the outstanding principal and interest are due. The maturity date of the mortgage loan is October 6, 2027, and we have the option to extend the maturity date for up to three additional one-year periods, subject to the payment of an extension fee, certain costs and expenses and certain other conditions. The mortgage loan contains customary default provisions including failure to pay amounts when due. As of March 31, 2026, the carrying value of the mortgage loan payable was $23,978.

Current wording

On September 30, 2025, we entered into a mortgage loan agreement with Ladder Capital Finance LLC for an aggregate principal amount of $24,500. The mortgage loan is collateralized by the Arbor Mist property. As of June 30, 2026, we had $24,500 outstanding under the mortgage loan. The mortgage loan bears interest at a rate equal to the greater of (a) SOFR plus 2.95% or (b) a floor rate of 6.20% per annum. The mortgage loan requires interest-only payments until the maturity date, at which point the outstanding principal and interest are due. The maturity date of the mortgage loan is October 6, 2027, and we have the option to extend the maturity date for up to three additional one-year periods, subject to the payment of an extension fee, certain costs and expenses and certain other conditions. The mortgage loan contains customary default provisions including failure to pay amounts when due. As of June 30, 2026, the carrying value of the mortgage loan payable was $24,065.

Previous wording

During the three months ended March 31, 2026 and 2025, we recorded $739 and $764, respectively, of interest expense related to loan participations sold.

Current wording

During the six months ended June 30, 2026 and 2025, we recorded $1,545 and $1,478, respectively, of interest expense related to loan participations sold.

Previous wording

Series A Preferred Stock dividends are paid quarterly in arrears based on an annualized distribution rate of 6.75% of the $25.00 per share liquidation preference, or $1.6875 per share per annum. The table below shows the aggregate annualized and quarterly distributions declared on the Series A Preferred Stock by record date since January 1, 2025.

Current wording

The table below shows the aggregate annualized and quarterly distributions declared on the Series A Preferred Stock by record date since January 1, 2025.

Previous wording

During the three months ended March 31, 2026 and 2025, 63% and 90%, respectively, of our common stock distributions were paid from cash flows from operating activities generated during the period, and the remainder was paid using cash generated during prior periods.

Current wording

During the six months ended June 30, 2026 and 2025, 68% and 96%, respectively, of our common stock distributions were paid from cash flows from operating activities generated during the period, and the remainder was paid using cash generated during prior periods.

Previous wording

Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, or ASU 2016-13, we use a probability-weighted quantitative analytical model to estimate and recognize an allowance for credit losses on loans held-for-investment and their related unfunded commitments. We employed quarterly updated macroeconomic forecasts, which reflect expectations for overall economic output, interest rates, values of real estate properties and other factors, geopolitical instability and the Federal Reserve monetary policy impact on the overall U.S. economy and commercial real estate markets generally. These estimates may change in future periods based on available future macroeconomic data and might result in a material change in our future estimates of expected credit losses for our loan portfolio.

Current wording

Loans held-for-investment are anticipated to be held until maturity, and reported at cost, net of allowance for credit losses, any unamortized acquisition premiums or discounts, loan fees and origination costs, as applicable. In accordance with ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, or ASU 2016-13, we use a probability-weighted quantitative analytical model to estimate and recognize an allowance for credit losses on loans held-for-investment and their related unfunded commitments. We employed quarterly updated macroeconomic forecasts, which reflect expectations for overall economic output, interest rates, values of real estate properties and other factors, geopolitical instability and the Federal Reserve monetary policy impact on the overall U.S. economy and commercial real estate markets generally. These estimates may change in future periods based on available future macroeconomic data and might result in a material change in our future estimates of expected credit losses for our loan portfolio.