Granite Point Mortgage Trust Inc.

Previous wording

During 2025, the Federal Reserve reduced interest rates three times by 25 basis points in each instance. The timing, direction and extent of any future interest rate changes remain uncertain, and interest rates remained at an elevated level. Absent other factors, our business model is such that higher interest rates should generally correlate to higher net interest income. However, interest rates have remained elevated for an extended period of time, adversely affecting our existing borrowers and the cost of financing their properties. Continued higher interest rates may further impact our borrowers and lead to non-performance, as well as dampen consumer spending and slow corporate profit growth, which may negatively impact the collateral underlying certain of our loans. Higher interest rates have adversely impacted, and may continue to adversely impact, commercial real estate property values. It remains difficult to predict the full impact of recent events, interest rate fluctuation, and inflation on macroeconomic conditions and our business.

Current wording

During 2025, the Federal Reserve reduced its benchmark interest rate three times by 25 basis points in each instance, while in September 2026, the Federal Reserve increased its benchmark interest rate by 25 basis points. The timing, direction and extent of any future interest rate changes remain uncertain, and interest rates remain elevated relative to recent historical levels. Absent other factors, our business model is such that higher interest rates should generally correlate to higher net interest income. However, interest rates have adversely affected certain of our borrowers and increased the cost of financing their properties. Continued elevated interest rates could further impact our borrowers’ ability to service or refinance their loans, as well as commercial real estate property values and transaction activity. These conditions, together with uncertainty regarding economic growth, inflation and trade policy, may continue to adversely affect the performance of properties securing our loans and our financial results.

Previous wording

The office property market has experienced higher vacancies, slower leasing activity, and tenant reevaluation of space needs since early 2020, largely due to remote and hybrid work arrangements. These factors coupled with tariffs, inflation, elevated interest rates and limited market liquidity have created a high level of uncertainty with respect to property values. These dynamics have stressed certain borrowers’ ability and willingness to support their properties and perform in accordance with their loan terms. Given this uncertainty, it remains difficult to predict the effect these challenging conditions may have on the office property market, our borrowers, their performance under the terms of our loans secured by office properties and our financial results.

Current wording

The office property market has experienced higher vacancies, slower leasing activity and tenant reevaluation of space needs since early 2020, largely due to remote and hybrid work arrangements. These factors, together with inflation, elevated interest rates, uncertainty regarding U.S. trade policy and limited market liquidity, have contributed to continued uncertainty regarding property values. These dynamics have stressed certain borrowers’ ability and willingness to support their properties and perform in accordance with their loan terms. Given this uncertainty, it remains difficult to predict the effect these challenging conditions may have on the office property market, our borrowers, their performance under the terms of our loans secured by office properties and our financial results.

Previous wording

•Generated Distributable (Loss) to common stockholders of $(37.7) million, or $(0.79) per basic share, which includes $(29.7) million in write-offs and $(3.1) million in discounts on participations sold and excludes $(47.0) million in provision for credit losses, $(6.1) million of impairment loss on REO, $(2.0) million of depreciation and amortization on REO, $(1.1) million of equity compensation expense and $(0.9) million of amortization of deferred debt issuance costs on participations sold.

Current wording

•Generated Distributable (Loss) to common stockholders of $(33.7) million, or $(6.99) per basic share, which includes $(25.3) million in write-offs and excludes $(45.4) million in provision for credit losses, $(2.6) million of impairment loss on REO, $(1.0) million of depreciation and amortization on REO, $(0.9) million of equity compensation expense, $(1.5) million of amortization of deferred debt issuance costs on participations sold and $(0.4) million of losses on extinguishment of debt.

Previous wording

•Generated Distributable (Loss) Before Realized Gains and Losses to common stockholders of $(4.9) million, or $(0.10) per basic share.

Current wording

•Generated Distributable (Loss) Before Realized Gains and Losses to common stockholders of $(8.4) million, or $(1.74) per basic share.

Previous wording

•Recorded an increase to the allowance for credit losses of $17.3 million, for a total allowance of credit losses of $165.8 million, or approximately 11.4% of total loan commitments of $1.5 billion at June 30, 2026.

Current wording

•Recorded an increase to the allowance for credit losses of $20.1 million, for a total allowance of credit losses of $185.9 million, or approximately 13.7% of total loan commitments of $1.4 billion at September 30, 2026.

Previous wording

•Book value per share of common stock at June 30, 2026, was $5.70, inclusive of $(3.44) per basic common share of total CECL reserve.

Current wording

•Book value per share of common stock at September 30, 2026, was $44.54, inclusive of $(38.58) per basic common share of total CECL reserve.

Previous wording

•Declared common stock dividends of $2.6 million, or $0.05 per share of common stock, and preferred dividends of $3.6 million, or $0.43750 per share of Series A Preferred Stock.

Current wording

•Declared common stock dividends of $0.5 million, or $0.10 per share of common stock, and preferred dividends of $3.6 million, or $0.43750 per share of Series A Preferred Stock.

Previous wording

•Realized $(129.8) million of total unpaid principal balance reduction from loan repayments, resolutions, principal paydowns, principal amortization and cost recovery.

Current wording

•Realized $(89.5) million of total unpaid principal balance reduction from loan repayments, resolutions, principal paydowns, principal amortization and cost recovery.

Previous wording

•Funded $8.0 million of prior loan commitments and upsizes, including $0.3 million of capitalized deferred interest.

Current wording

•Funded $7.9 million of prior loan commitments and upsizes, including $0.3 million of capitalized deferred interest.

Previous wording

•Ended the quarter with a portfolio of 38 loan investments with an aggregate unpaid principal balance of $1.4 billion and total commitments of $1.5 billion, a weighted average stabilized LTV at origination of 66.1%, and a weighted average all-in yield at origination of S+3.91%.

Current wording

•Ended the quarter with a portfolio of 34 loan investments with an aggregate unpaid principal balance of $1.3 billion and total commitments of $1.4 billion, a weighted average stabilized LTV at origination of 66.0%, and a weighted average all-in yield at origination of S+3.89%.

Previous wording

•At June 30, 2026, carried unrestricted cash of $58.5 million, a portion of which is subject to certain liquidity covenants.

Current wording

•At September 30, 2026, had unrestricted cash of $44.7 million, a portion of which is subject to certain liquidity covenants.

Previous wording

As a commercial real estate finance company, we believe the key financial measures and indicators for our business are earnings per share presented on a GAAP basis, dividends declared on common stock, Distributable Earnings and book value per share of common stock. During the three months ended June 30, 2026, we recorded a GAAP net (loss) per basic common share of $(1.29), declared cash dividends of 0.05 per share of common stock and reported Distributable (Loss) of $(0.79) per basic common share. Our book value as of June 30, 2026, was $5.70 per share of common stock, inclusive of $(3.44) per share of total CECL reserves.

Current wording

As a commercial real estate finance company, we believe the key financial measures and indicators for our business are earnings per share presented on a GAAP basis, dividends declared on common stock, Distributable Earnings and book value per share of common stock. During the three months ended September 30, 2026, we recorded a GAAP net (loss) per basic common share of $(12.50), declared cash dividends of $0.10 per share of common stock and reported Distributable (Loss) of $(6.99) per basic common share. Our book value as of September 30, 2026, was $44.54 per share of common stock, inclusive of $(38.58) per share of total CECL reserves.

Previous wording

The following table sets forth the calculation of basic and diluted earnings (loss) per share and dividends declared per share for the three and six months ended June 30, 2026, and 2025:

Current wording

The following table sets forth the calculation of basic and diluted earnings (loss) per share and dividends declared per share for the three and nine months ended September 30, 2026, and 2025. All per share amounts, common shares outstanding and common equity-based awards for all periods presented have been adjusted on a retroactive basis to reflect the reverse stock split.

Previous wording

The following table provides a reconciliation of GAAP net (loss) attributable to common stockholders to Distributable Earnings (Loss) Before Realized Gains and Losses and Distributable Earnings (Loss) for the three and six months ended June 30, 2026, and 2025:

Current wording

The following table provides a reconciliation of GAAP net (loss) attributable to common stockholders to Distributable Earnings (Loss) Before Realized Gains and Losses and Distributable Earnings (Loss) for the three and nine months ended September 30, 2026, and 2025:

Previous wording

Book value per share as of June 30, 2026, includes the impact of an estimated allowance for credit losses of $165.8 million, or $(3.44) per common share. See Note 3 –Loans Held-for-Investment, Net of Allowance for Credit Losses to our Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for a detailed discussion of allowance for credit losses.

Current wording

Book value per share as of September 30, 2026, includes the impact of an estimated allowance for credit losses of $185.9 million, or $(38.58) per common share. See Note 3 –Loans Held-for-Investment, Net of Allowance for Credit Losses to our Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for a detailed discussion of allowance for credit losses.

Previous wording

Interest-earning assets include our 100% loan investment portfolio. At June 30, 2026, our loan portfolio was comprised of 38 investments, all of which were senior first mortgage loans totaling $1.5 billion of commitments with an unpaid principal balance of $1.4 billion. At June 30, 2026, the weighted average risk rating of our loan portfolio was 3.2 as compared to 2.9 at December 31, 2025, weighted by total unpaid principal balance.

Current wording

Interest-earning assets include our 100% loan investment portfolio. At September 30, 2026, our loan portfolio was comprised of 34 investments, all of which were senior first mortgage loans totaling $1.4 billion of commitments with an unpaid principal balance of $1.3 billion. At September 30, 2026, the weighted average risk rating of our loan portfolio was 3.3 as compared to 2.9 at December 31, 2025, weighted by total unpaid principal balance.

Previous wording

We may hold REO as a result of taking title to a loan’s collateral. As of June 30, 2026, we held two REO office properties, one REO, held-for-investment with an aggregate carrying value of $35.8 million, inclusive of $5.9 million of intangible and other assets included in other assets and $(0.1) million of unfavorable and other lease liabilities in our condensed consolidated balance sheets and one REO held-for-sale with an aggregate carrying value of $54.9 million, inclusive of $7.3 million of REO liabilities, held-for-sale in our condensed consolidated balance sheets.

Current wording

We may hold REO as a result of taking title to a loan’s collateral. As of September 30, 2026, we held two REO office properties, one REO, held-for-investment with an aggregate carrying value of $36.1 million, inclusive of $5.4 million of intangible and other assets included in other assets and $(0.1) million of unfavorable and other lease liabilities in our condensed consolidated balance sheets and one REO held-for-sale with an aggregate carrying value of $52.4 million, inclusive of $7.3 million of REO liabilities, held-for-sale in our condensed consolidated balance sheets.

Previous wording

During the three months ended June 30, 2026, we funded $8.0 million under existing loan commitments, loan upsizes, deferred capitalized interest and other investments. We realized $(129.8) million in aggregate reductions in portfolio unpaid principal balance from loan repayments and resolutions, principal paydowns, principal amortization and cost recoveries. See Note 3 —Loans Held-for-Investment, Net of Allowance for Credit Losses to our Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for further detail.

Current wording

During the three months ended September 30, 2026, we funded $7.9 million under existing loan commitments, loan upsizes, deferred capitalized interest and other investments. We realized $(89.5) million in aggregate reductions in portfolio unpaid principal balance from loan repayments and resolutions, principal paydowns, principal amortization and cost recoveries. See Note 3 —Loans Held-for-Investment, Net of Allowance for Credit Losses to our Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for further detail.

Previous wording

(1)Includes $2.3 million in fundings of other investments classified as loans held-for-investment during the three months ended June 30, 2026.

Current wording

(1)Includes $0.3 million in fundings of other investments classified as loans held-for-investment during the three months ended September 30, 2026.

Previous wording

(11)Includes a preferred equity investment of $2.8 million with a fixed rate of 11% deferred until maturity and a 35% residual return in the borrower entity of the senior loan. The preferred equity balance is on nonaccrual status as of June 30, 2026. As of June 30, 2026, the maturity date is October 9, 2026, which is determined by the maturity date of the associated senior loan.

Current wording

(11)Includes a preferred equity investment of $3.0 million with a fixed rate of 11% deferred until maturity and a 35% residual return in the borrower entity of the senior loan. The preferred equity balance is on nonaccrual status as of September 30, 2026. As of September 30, 2026, the maturity date is October 9, 2026, which is determined by the maturity date of the associated senior loan.

Previous wording

(13)Includes a preferred equity investment of $1.8 million with a fixed rate of 12% deferred until maturity and a 40% residual return in the borrower entity of the senior loan. The preferred equity balance is on nonaccrual status as of June 30, 2026. As of June 30, 2026, the maturity date is October 9, 2026, which is determined by the maturity date of the associated senior loan.

Current wording

(13)Includes a preferred equity investment of $1.9 million with a fixed rate of 12% deferred until maturity and a 40% residual return in the borrower entity of the senior loan. The preferred equity balance is on nonaccrual status as of September 30, 2026. As of September 30, 2026, the maturity date is October 9, 2027, which is determined by the maturity date of the associated senior loan.

Previous wording

As of June 30, 2026, the weighted average risk rating of our loan portfolio was 3.2, versus 2.9 as of December 31, 2025, weighted by unpaid principal balance. The change in the weighted average portfolio risk rating versus December 31, 2025, is mainly a result of select loan downgrades, two loan repayments with a risk rating of “1” and one loan sale with a risk rating of “1” during the three and six months ended June 30, 2026.

Current wording

As of September 30, 2026, the weighted average risk rating of our loan portfolio was 3.3, versus 2.9 as of December 31, 2025, weighted by unpaid principal balance. The change in the weighted average portfolio risk rating versus December 31, 2025, is mainly a result of select loan downgrades, the repayment of two loans with a risk rating of “1” and the sale of one loan with a risk rating of “1” during the nine months ended September 30, 2026.

Previous wording

As of June 30, 2026, we had five loans that had a risk rating of “5” with an aggregate principal balance of $252.9 million, including one loan downgraded to a risk rating of “5” during the three months ended June 30, 2026. These five loans were on nonaccrual status as of June 30, 2026. The performance of these assets, which include two office buildings, two hotel properties and one multifamily property, has been adversely affected to varying degrees by many factors, such as slower pace in leasing activity for office properties and other submarket dynamics, combined with a significant rise in interest rates, contributing to a meaningful reduction in real estate transaction activity, capital markets volatility and limited market liquidity affecting property values and these borrowers’ ability to either sell or refinance their loans, and other property-specific factors.

Current wording

As of September 30, 2026, we had five loans that had a risk rating of “5” with an aggregate principal balance of $260.4 million, including two loans downgraded to a risk rating of “5” during the three months ended September 30, 2026. These five loans were on nonaccrual status as of September 30, 2026. The performance of these assets, which include four office buildings and one hotel property, has been adversely affected to varying degrees by many factors, such as slower pace in leasing activity for office properties and other submarket dynamics, combined with a significant rise in interest rates, contributing to a meaningful reduction in real estate transaction activity, capital markets volatility and limited market liquidity affecting property values and these borrowers’ ability to either sell or refinance their loans, and other property-specific factors.

Previous wording

During the 12 months ended June 30, 2026, we entered into the following four loan modifications that met the disclosure requirements pursuant to ASC 326.

Current wording

During the 12 months ended September 30, 2026, we entered into the following six loan modifications that met the disclosure requirements pursuant to ASC 326.

Previous wording

During the three months ended June 30, 2026, we completed the modification of a senior loan secured by an office property located in New York, NY, and the related preferred equity interest classified as loans held-for-investment. As of June 30, 2026, and December 31, 2025, the senior loan had a principal balance and amortized cost of $29.2 million and $29.5 million, respectively. The terms of the senior loan modification included, among other things, a six-month extension of the maturity date to October 9, 2026, with options to further extend the loan to a fully extended maturity date of April 9, 2027. The modification of the preferred equity interest included, among other things, (i) a $1.6 million upsizing of the total commitment, and (ii) an increase in the residual return from 30% to 35%. The preferred equity earns an 11% deferred preferred return and a 35% residual return. Due to the uncertainty of collection of any preferred return, we are not accruing any income on the preferred equity interest. As of June 30, 2026, the senior loan and preferred equity interest had an aggregate principal balance and amortized cost of $32.1 million and $32.0 million, respectively. The senior loan was performing pursuant to its modified contractual terms and accruing interest income on the consolidated statements of income as of June 30, 2026.

Current wording

During the three months ended June 30, 2026, we completed the modification of a senior loan secured by an office property located in New York, NY, and the related preferred equity interest classified as loans held-for-investment. As of September 30, 2026, and December 31, 2025, the senior loan had a principal balance and amortized cost of $29.2 million and $29.5 million, respectively. The terms of the senior loan modification included, among other things, a six-month extension of the maturity date to October 9, 2026, with options to further extend the loan to a fully extended maturity date of April 9, 2027. The modification of the preferred equity interest included, among other things, (i) a $1.6 million upsizing of the total commitment, and (ii) an increase in the residual return from 30% to 35%. The preferred equity earns an 11% deferred preferred return and a 35% residual return. Due to the uncertainty of collection of any preferred return, we are not accruing any income on the preferred equity interest. As of September 30, 2026, the senior loan and preferred equity interest had an aggregate principal balance and amortized cost of $32.3 million and $32.2 million, respectively. The senior loan was performing pursuant to its modified contractual terms and accruing interest income on the consolidated statements of income as of September 30, 2026.

Previous wording

During the three months ended June 30, 2026, we completed the modification of a senior loan secured by a hotel property located in Tempe, AZ. As of June 30, 2026, and December 31, 2025, the loan had a principal balance of $27.5 million and $26.9 million, respectively, and an amortized cost of $27.6 million and $26.9 million, respectively. The terms of the modification included, among other things: (i) an extension of the fully extended maturity date to November 9, 2026, with one three-month option to extend to February 9, 2027, and (ii) a $2.1 million upsizing of the total commitment of the loan, resulting in an aggregate $4.6 million upsizing of the total commitment when considering other modifications occurring during the 12 months ended June 30, 2026. Due to the uncertainty with respect to the collection of principal and interest, the loan was previously deemed collateral dependent, assigned a risk rating of “5” and was placed on nonaccrual status. The senior loan was performing pursuant to its modified contractual terms as of June 30, 2026.

Current wording

During the three months ended June 30, 2026, we completed the modification of a senior loan secured by a hotel property located in Tempe, AZ. As of September 30, 2026, and December 31, 2025, the loan had a principal balance of $28.7 million and $26.9 million, respectively, and an amortized cost of $28.8 million and $26.9 million, respectively. The terms of the modification included, among other things: (i) an extension of the fully extended maturity date to November 9, 2026, with one three-month option to extend to February 9, 2027, (ii) the deferral of all interest-only payments, and (iii) a $2.1 million upsizing of the total commitment of the loan, resulting in an aggregate $4.6 million upsizing of the total commitment when considering other modifications occurring during the 12 months ended September 30, 2026. Due to the uncertainty with respect to the collection of principal and interest, the loan was previously deemed collateral-dependent, assigned a risk rating of “5” and was placed on nonaccrual status. The senior loan was performing pursuant to its modified contractual terms as of September 30, 2026.

Previous wording

During the three months ended March 31, 2026, we completed the modification of a senior loan secured by an office property located in New York, NY, and the related unsecured note and equity interest classified as loans held-for-investment. As of June 30, 2026, and December 31, 2025, the senior loan had a principal balance and amortized cost of $69.2 million and $69.1 million, respectively. The terms of the senior loan modification included, among other things, a one-year extension of the fully extended maturity date to December 9, 2026, with one 12-month option to extend to December 9, 2027. The modification of the unsecured note and equity interest included, among other things, (i) a one-year extension of the fully extended maturity date to December 9, 2026, with one 12-month option to extend to December 9, 2027, (ii) a $4.8 million upsizing of the total commitment of the unsecured note, and (iii) a $0.1 million investment in exchange for an additional equity interest of 5%. The unsecured note earns deferred interest, which carries an accrual rate of 11%. Due to the uncertainty of collection of any unsecured note interest, we are not accruing any income on the unsecured note. As of June 30, 2026, the senior loan, unsecured note and equity interest had an aggregate principal balance and amortized cost of $74.7 million. The senior loan was performing pursuant to its modified contractual terms and accruing interest income on the consolidated statements of income as of June 30, 2026.

Current wording

During the three months ended March 31, 2026, we completed the modification of a senior loan secured by an office property located in New York, NY, and the related unsecured note and equity interest classified as loans held-for-investment. As of September 30, 2026, and December 31, 2025, the senior loan had a principal balance and amortized cost of $69.2 million and $69.1 million, respectively. The terms of the senior loan modification included, among other things, a one-year extension of the fully extended maturity date to December 9, 2026, with one 12-month option to extend to December 9, 2027. The modification of the unsecured note and equity interest included, among other things, (i) a one-year extension of the fully extended maturity date to December 9, 2026, with one 12-month option to extend to December 9, 2027, (ii) a $4.8 million upsizing of the total commitment of the unsecured note, and (iii) a $0.1 million investment in exchange for an additional equity interest of 5%. The unsecured note earns deferred interest, which carries an accrual rate of 11%. Due to the uncertainty of collection of any unsecured note interest, we are not accruing any income on the unsecured note. As of September 30, 2026, the senior loan, unsecured note and equity interest had an aggregate principal balance and amortized cost of $74.7 million. The senior loan, unsecured note and equity interest were deemed collateral-dependent and placed on nonaccrual status during the three months ended September 30, 2026. The senior loan was performing pursuant to its modified contractual terms as of September 30, 2026.

Previous wording

During the three months ended December 31, 2025, we completed the modification of a senior loan secured by an office property located in Encino, CA. As of June 30, 2026, and December 31, 2025, the senior loan had a principal balance of $43.8 million and $43.4 million, respectively, and an amortized cost of $43.7 million and $43.2 million, respectively. The terms of the modification included, among other things, (i) a two-year extension of the fully extended maturity date to October 9, 2028, and (ii) a $3.8 million upsizing of the total commitment of the loan. Additionally, we made a $1.6 million non-controlling preferred equity investment in a limited liability company, or LLC, that is the borrower of the senior loan with an initial redemption date of October 9, 2026, which is determined by the maturity date of the associated senior loan. We may invest up to an additional $2.0 million in the preferred equity investment. The preferred equity investment will earn a deferred preferred return, which carries an accrual rate of 12%. Due to the uncertainty of collection of any preferred equity investment accrued amounts, we are not accruing any income on the preferred equity investment. The preferred equity investment is included in our consolidated balance sheets within loans held-for-investment. As of June 30, 2026, the senior loan and preferred equity investment had an aggregate principal balance of $45.6 million and an aggregate amortized cost of $45.5 million. The senior loan was performing pursuant to its modified contractual terms and accruing interest income on the consolidated statements of income as of June 30, 2026.

Current wording

2028, and (ii) a $3.8 million upsizing of the total commitment of the loan. Additionally, we made a $1.6 million non-controlling preferred equity investment in a limited liability company, or LLC, that is the borrower of the senior loan with an initial redemption date of October 9, 2026, which is determined by the maturity date of the associated senior loan. We may invest up to an additional $2.0 million in the preferred equity investment. The preferred equity investment will earn a deferred preferred return, which carries an accrual rate of 12%. Due to the uncertainty of collection of any preferred equity investment accrued amounts, we are not accruing any income on the preferred equity investment. The preferred equity investment is included in our consolidated balance sheets within loans held-for-investment. As of September 30, 2026, the senior loan and preferred equity investment had an aggregate principal balance of $45.9 million and an aggregate amortized cost of $45.8 million. The senior loan was performing pursuant to its modified contractual terms and accruing interest income on the consolidated statements of income as of September 30, 2026.

Previous wording

As of June 30, 2026, our portfolio financing consisted of repurchase facilities, secured credit facilities, a mortgage loan payable collateralized by REO, held-for-investment, loan participations sold and securitized debt obligations collateralized by pools of loans held-for-investment issued in CRE CLOs. Our non-mark-to-market financing sources accounted for approximately 67.2% of portfolio-level financing by principal balance as of June 30, 2026.

Current wording

As of September 30, 2026, and December 31, 2025, our portfolio financing consisted of repurchase facilities, secured credit facilities, a mortgage loan payable collateralized by REO, held-for-investment loan participations sold and securitized debt obligations collateralized by pools of loans held-for-investment issued in CRE CLOs. Our non-mark-to-market financing sources accounted for approximately 14.1% of portfolio-level financing by principal balance as of September 30, 2026.

Previous wording

(1)As of June 30, 2026, real estate owned, held-for-investment, net included $5.8 million in other assets, net of other liabilities.

Current wording

(1)As of September 30, 2026, real estate owned, held-for-investment, net included $5.3 million in other assets, net of other liabilities.

Previous wording

As of June 30, 2026, we had repurchase facilities in place with three counterparties with aggregate outstanding borrowings of $0.3 billion, which financed a portion of our loans held-for-investment and real estate owned, held-for-sale. As of June 30, 2026, the weighted average borrowing rate on our repurchase facilities was 6.0%, the weighted average advance rate was 53.8%, and the term to maturity ranged from approximately 0.1 years to approximately 1.0 years, with a weighted average remaining maturity of 0.4 years.

Current wording

As of September 30, 2026, we had repurchase facilities in place with three counterparties with aggregate outstanding borrowings of $0.7 billion, which financed a portion of our loans held-for-investment and real estate owned, held-for-sale. As of September 30, 2026, the weighted average borrowing rate on our repurchase facilities was 5.9%, the weighted average advance rate was 61.4%, and the term to maturity ranged from approximately 0.6 years to approximately 1.8 years, with a weighted average remaining maturity of 1.8 years.

Previous wording

(3)Collateral value includes real estate owned, held-for-sale with a carrying value of $54.9 million.

Current wording

(3)Collateral value includes real estate owned, held-for-sale with a carrying value of $52.4 million.

Previous wording

(4)Subsequent to June 30, 2026, we entered into modifications of the facility to extend the maturity date to July 28, 2028 and increase the maximum facility capacity to $651.0 million.

Current wording

(4)Subsequent to September 30, 2026, we terminated the facility.

Previous wording

In December 2022, we entered into a secured credit facility with a maximum borrowing capacity of $100.0 million. The facility had aggregate outstanding borrowings of $71.8 million as of June 30, 2026, which financed a portion of our loans held for investment on a non-mark-to-market basis. The facility matures on December 21, 2027.

Current wording

In December 2022, we entered into a secured credit facility with a maximum borrowing capacity of $100.0 million. The facility had aggregate outstanding borrowings of $67.2 million as of September 30, 2026, which financed a portion of our loans held for investment on a non-mark-to-market basis. The facility matures on December 21, 2027.

Previous wording

In June 2026, we sold two participations with an aggregate unpaid principal balance of $30.5 million of a loan investment with a total unpaid principal balance of $73.1 million to an unaffiliated third party for net proceeds of $27.2 million. The transfers did not qualify for sale accounting under ASC 860 and are, therefore, accounted for as secured borrowings, with the underlying loan remaining recognized in its entirety and a corresponding loan participations sold liability recorded in our balance sheets as of June 30, 2026.

Current wording

In June 2026, we sold two participations with an aggregate unpaid principal balance of $34.1 million of a loan investment with a total unpaid principal balance of $76.7 million to an unaffiliated third party for net proceeds of $27.2 million. The transfers did not qualify for sale accounting under ASC 860 and are, therefore, accounted for as secured borrowings, with the underlying loan remaining recognized in its entirety and a corresponding loan participations sold liability recorded in our balance sheets as of September 30, 2026.

Previous wording

As of June 30, 2026, the total debt-to-equity ratio with respect to our loans held-for-investment was 1.9:1.0, and our recourse leverage ratio was 0.7:1.0. The following table represents our recourse leverage ratio and total leverage ratio as of June 30, 2026, and December 31, 2025. The period-over-period decrease in our leverage ratios was mainly related to lower borrowings due to loan repayments and paydowns.

Current wording

As of September 30, 2026, the total debt-to-equity ratio with respect to our loans held-for-investment was 1.9:1.0, and our recourse leverage ratio was 1.8:1.0. The following table represents our recourse leverage ratio and total leverage ratio as of September 30, 2026, and December 31, 2025. The period-over-period decrease in our leverage ratios was mainly related to lower borrowings due to loan repayments and paydowns.

Previous wording

Our business strategy seeks to minimize our exposure to changes in interest rates by matching benchmark indices on our assets with those on our asset-level borrowings. Accordingly, our business model is such that, in general, rising interest rates will increase our net interest income, while declining interest rates will decrease our net interest income, subject to the impact of interest rate floors on our floating rate assets and certain liabilities. As of June 30, 2026, 97.4% of our loan investments by principal balance earned a floating rate of interest and were financed with liabilities that pay interest on a floating-rate basis, which resulted in an amount of net floating-rate exposure, subject to the impact of interest rate floors on certain of our floating-rate loan investments, of $0.4 billion. As of June 30, 2026, 2.6% of our loan investments by principal balance earned a fixed rate of interest and were financed with liabilities that pay interest on a floating-rate basis, which resulted in a negative correlation to elevated interest rates on that amount of our financing.

Current wording

Our business strategy seeks to minimize our exposure to changes in interest rates by matching benchmark indices on our assets with those on our asset-level borrowings. Accordingly, our business model generally is such that rising interest rates increase our net interest income, while declining interest rates decrease our net interest income, subject to the impact of contractual interest rate floors, the performance of our loan investments, including loans on nonaccrual status, and changes in our financing costs. As of September 30, 2026, 97.2% of our loan investments by principal balance earned a floating rate of interest and were financed with liabilities that pay interest on a floating-rate basis, which resulted in an amount of net floating-rate exposure, subject to the impact of interest rate floors on certain of our floating-rate loan investments, of $0.4 billion. As of September 30, 2026, 2.8% of our loan investments by principal balance earned a fixed rate of interest and were financed with liabilities that pay interest on a floating-rate basis, which resulted in a negative correlation to elevated interest rates on that amount of our financing.

Previous wording

(3)Floating-rate liabilities include our outstanding repurchase facilities, secured credit facility, CRE CLOs, mortgage loan payable and loan participations sold.

Current wording

(3)Floating-rate liabilities include our outstanding repurchase facilities, secured credit facility, mortgage loan payable and loan participations sold.

Previous wording

The following tables present the components of interest income and average annualized net asset yield earned by asset type, the components of interest expense and average annualized cost of funds on borrowings incurred by collateral type and net interest income and average annualized net interest rate spread for the three and six months ended June 30, 2026, and 2025. The net asset yield reflects the impact of loans held on nonaccrual status.

Current wording

The following tables present the components of interest income and average annualized net asset yield earned by asset type, the components of interest expense and average annualized cost of funds on borrowings incurred by collateral type and net interest income and average annualized net interest rate spread for the three and nine months ended September 30, 2026, and 2025. The net asset yield reflects the impact of loans held on nonaccrual status.

Previous wording

Our business model is mainly focused on directly originating, investing in and managing senior floating-rate commercial mortgage loans and other debt and debt-like commercial real estate investments. As a result of this strategy, our operating performance is subject to overall market demand for commercial real estate loan products and other debt and debt-like commercial real estate investments. We manage originations and acquisitions of our target investments by diversifying our investment portfolio across geographical regions, local markets, property types, borrower types and loan structures. We do not limit our investments to any number of geographical areas or property types for our originations so that we develop a well-diversified investment portfolio. Additionally, our team has extensive experience originating and acquiring commercial real estate loans and other debt and debt-like commercial real estate investments, through a network of long-standing relationships with borrowers, sponsors and industry brokers. Investor concerns over inflation, elevated interest rates and geopolitical uncertainty have resulted in significant disruptions and volatility in financial markets, uncertainty about the overall macroeconomic outlook and a dislocation in the commercial real estate sector, including reduced borrower demand, wider credit spreads, higher lending rates, increased capitalization rates on properties and significantly lower transaction volume. This dislocation in capital markets and decline in real estate sale transaction and refinancing activities have negatively impacted, and will likely continue to negatively impact, the volume of loan repayments and prepayments on select property types (which are a significant source of our overall liquidity) and the volume of our originations of new loan investments.

Current wording

Our business model is mainly focused on directly originating, investing in and managing senior floating-rate commercial mortgage loans and other debt and debt-like commercial real estate investments. As a result of this strategy, our operating performance is subject to overall market demand for commercial real estate loan products and other debt and debt-like commercial real estate investments. We manage originations and acquisitions of our target investments by diversifying our investment portfolio across geographical regions, local markets, property types, borrower types and loan structures. We do not limit our investments to any number of geographical areas or property types for our originations as we seek to develop a well-diversified investment portfolio. Additionally, our team has extensive experience originating and acquiring commercial real estate loans and other debt and debt-like commercial real estate investments, through a network of long-standing relationships with borrowers, sponsors and industry brokers. Investor concerns over inflation, elevated interest rates and geopolitical uncertainty have resulted in significant disruptions and volatility in financial markets, uncertainty about the overall macroeconomic outlook and a dislocation in the commercial real estate sector, including reduced borrower demand, wider credit spreads, higher lending rates, increased capitalization rates on properties and significantly lower transaction volume. This dislocation in capital markets and decline in real estate sale transaction and refinancing activities have negatively impacted, and will likely continue to negatively impact, the volume of loan repayments and prepayments on select property types (which are a significant source of our overall liquidity) and the volume of our originations of new loan investments.