ADAMAS TRUST, INC. (ADAM)

CIK: 0001273685. SIC: 6798 Real Estate Investment Trusts. Latest 10-K as of: 2026-02-20.

SIC breadcrumb: Finance, Insurance, And Real Estate > Holding And Other Investment Offices > SIC 6798 Real Estate Investment Trusts

SEC company page: https://www.sec.gov/edgar/browse/?CIK=1273685. Latest filing source: 0001273685-26-000029.

Selected Fundamentals

Metric	Value	Unit	FY	Filed
Revenue	149,301,000	USD	2025	2026-02-20
Net income	149,048,000	USD	2025	2026-02-20
Assets	12,638,847,000	USD	2025	2026-02-20

Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-20. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001273685.json. Derived margins are computed from the extracted annual SEC facts.

Flow metrics use full-year FY periods from 10-K/10-K/A filings; balance-sheet metrics use FY-end instants. Missing metrics are omitted rather than fabricated.

Metric	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025
Revenue					127,093,000		128,969,000	66,526,000	83,855,000	149,301,000
Net income	67,551,000	91,980,000	102,886,000	173,736,000	-288,510,000	193,200,000	-298,605,000	-48,665,000	-62,029,000	149,048,000
Operating income		91,922,000	103,738,000	172,477,000	-287,262,000	190,934,000	-340,107,000	-77,724,000	-92,917,000	137,802,000
Diluted EPS	0.50	0.66	0.61	0.64	-0.89	1.51	-3.61	-0.99	-1.14	1.10
Assets	8,951,631,000	12,056,285,000	14,737,638,000	23,483,369,000	4,655,587,000	5,658,301,000	6,240,745,000	7,401,328,000	9,217,282,000	12,638,847,000
Liabilities	8,100,469,000	11,080,284,000	13,557,345,000	21,278,340,000	2,348,014,000	3,226,519,000	4,376,634,000	5,773,202,000	7,806,148,000	11,208,410,000
Stockholders' equity	848,075,000	971,865,000	1,179,389,000	2,205,733,000	2,301,202,000	2,341,031,000	1,767,216,000	1,579,612,000	1,394,720,000	1,426,922,000
Cash and cash equivalents	83,554,000	95,191,000	103,724,000	118,763,000	293,183,000	289,602,000	244,718,000	187,107,000	167,422,000	210,333,000
Net margin								-73.15%	-73.97%	99.83%
Operating margin								-116.83%	-110.81%	92.30%

Financial Charts

Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-01. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001273685.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

Quarter	End Date	Revenue	Net Income	Diluted EPS	Method
2022-Q2	2022-06-30			-0.22	reported discrete quarter
2022-Q3	2022-09-30			-0.33	reported discrete quarter
2023-Q1	2023-03-31			0.11	reported discrete quarter
2023-Q2	2023-06-30	15,136,000	-26,928,000	-0.41	reported discrete quarter
2023-Q3	2023-09-30	16,789,000	-84,509,000	-1.04	reported discrete quarter
2023-Q4	2023-12-31	16,800,000	41,908,000		derived Q4 = FY annual - nine-month YTD
2024-Q1	2024-03-31	17,863,000	-57,901,000	-0.75	reported discrete quarter
2024-Q2	2024-06-30	19,044,000	-15,589,000	-0.29	reported discrete quarter
2024-Q3	2024-09-30	20,237,000	42,849,000	0.36	reported discrete quarter
2024-Q4	2024-12-31	26,711,000	-31,389,000		derived Q4 = FY annual - nine-month YTD
2025-Q1	2025-03-31	33,098,000	42,155,000	0.33	reported discrete quarter
2025-Q2	2025-06-30	36,447,000	8,546,000	-0.04	reported discrete quarter
2025-Q3	2025-09-30	36,586,000	44,820,000	0.36	reported discrete quarter
2025-Q4	2025-12-31	43,170,000	53,526,000		derived Q4 = FY annual - nine-month YTD
2026-Q1	2026-03-31	48,411,000	48,601,000	0.40	reported discrete quarter

Quarterly Charts

Macro Cross-References

CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
UNRATE - Unemployment Rate
FEDFUNDS - Federal Funds Effective Rate
CES0500000003 - Average Hourly Earnings of All Employees, Total Private
DFEDTARU - Federal Funds Target Range - Upper Limit
DFEDTARL - Federal Funds Target Range - Lower Limit
DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
PCEPI - Personal Consumption Expenditures: Chain-type Price Index
PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
PPIACO - Producer Price Index by Commodity: All Commodities
T10YIE - 10-Year Breakeven Inflation Rate
U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
PAYEMS - All Employees, Total Nonfarm
CIVPART - Labor Force Participation Rate
EMRATIO - Employment-Population Ratio
UNEMPLOY - Unemployed
CE16OV - Employment Level
ICSA - Initial Claims
JTSJOL - Job Openings: Total Nonfarm
JTSQUR - Quits: Total Nonfarm
GDPC1 - Real Gross Domestic Product
A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
INDPRO - Industrial Production: Total Index
TCU - Capacity Utilization: Total Index
HOUST - New Privately-Owned Housing Units Started: Total Units
PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
RSAFS - Advance Retail Sales: Retail Trade
PCE - Personal Consumption Expenditures
DSPIC96 - Real Disposable Personal Income
PSAVERT - Personal Saving Rate
M2SL - M2
BOPGSTB - U.S. International Trade in Goods and Services: Balance
MSPUS - Median Sales Price of Houses Sold for the United States
HSN1F - New One Family Houses Sold: United States
RHORUSQ156N - Homeownership Rate in the United States
TTLCONS - Total Construction Spending: Total Construction in the United States
RRVRUSQ156N - Rental Vacancy Rate in the United States
TOTALSL - Total Consumer Credit Owned and Securitized
REVOLSL - Revolving Consumer Credit Owned and Securitized
DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
GDP - Gross Domestic Product
GPDI - Gross Private Domestic Investment
GCE - Government Consumption Expenditures and Gross Investment
PCEC - Personal Consumption Expenditures
NETEXP - Net Exports of Goods and Services
GFDEBTN - Federal Debt: Total Public Debt
GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
FYFSD - Federal Surplus or Deficit
FGRECPT - Federal Government Current Receipts
FGEXPND - Federal Government: Current Expenditures
MANEMP - All Employees, Manufacturing
USCONS - All Employees, Construction
USTRADE - All Employees, Retail Trade
USFIRE - All Employees, Financial Activities
USGOVT - All Employees, Government
AWHAETP - Average Weekly Hours of All Employees, Total Private
DGORDER - Manufacturers' New Orders: Durable Goods
NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
BUSINV - Total Business Inventories
EXPGS - Exports of Goods and Services
IMPGS - Imports of Goods and Services
IR - Import Price Index (End Use): All Commodities
PPIFIS - Producer Price Index by Commodity: Final Demand

Latest quarter (10-Q)

Latest 10-Q source: 0001273685-26-000045.

Extracted between Part I Item 2 and the next Item 3/4 or Part II heading after HTML sanitization. Confidence: high. Filing date: 2026-05-01. Report date: 2026-03-31.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

When used in this Quarterly Report on Form 10-Q, in future filings with the SEC or in press releases or other written or oral communications issued or made by us, statements which are not historical in nature, including those containing words such as “will,” “believe,” “expect,” “anticipate,” “estimate,” “plan,” “continue,” “intend,” “could,” “would,” “should,” “may,” or similar expressions, are intended to identify “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and, as such, may involve known and unknown risks, uncertainties and assumptions. 

Forward-looking statements are based on estimates, projections, beliefs and assumptions of management of the Company at the time of such statements and are not guarantees of future performance. Forward-looking statements involve risks and uncertainties in predicting future results and conditions. Actual results and outcomes could differ materially from those projected in these forward-looking statements due to a variety of factors, including, without limitation:

•changes in our business and investment strategy;

•inflation and changes in interest rates and the fair market value of our assets, including negative changes resulting in margin calls relating to the financing of our assets;

•changes in credit spreads;

•changes in the long-term credit ratings of the U.S., Fannie Mae, Freddie Mac, and Ginnie Mae;

•general volatility of the markets in which we invest;

•changes in prepayment rates on the loans we own or that underlie our investment securities;

•increased rates of default, delinquency or vacancy and/or decreased recovery rates on or at our assets;

•our ability to identify and acquire our targeted assets, including assets in our investment pipeline;

•our ability to dispose of assets from time to time on terms favorable to us;

•changes in our relationships with our financing counterparties and our ability to borrow to finance our assets and the terms thereof;

•changes in our relationships with and/or the performance of our operating partners;

•our ability to predict and control costs;

•changes in laws, regulations or policies affecting our business;

•our ability to make distributions to our stockholders in the future;

•our ability to maintain our qualification as a real estate investment trust ("REIT") for U.S. federal income tax purposes;

•our ability to maintain our exemption from registration under the Investment Company Act of 1940, as amended (the “Investment Company Act”);

•impairments and declines in the value of the collateral underlying our investments;

•changes in the benefits we anticipate from the acquisition of Constructive Loans, LLC (“Constructive”);

•our ability to effectively integrate Constructive into our Company and the risks associated with the ongoing operation thereof;

•our ability to manage or hedge credit risk, interest rate risk, and other financial and operational risks;

•our exposure to liquidity risk, risks associated with the use of leverage, and market risks; and

•risks associated with investing in real estate assets and/or operating companies, including changes in business conditions and the general economy, the availability of investment opportunities and conditions in markets for residential loans, mortgage-backed securities, structured multi-family investments and other assets that we own or in which we invest.

These and other risks, uncertainties and factors, including the risk factors described in our most recent Annual Report on Form 10-K and in this Quarterly Report on Form 10-Q, as updated by those risks described in our subsequent filings with the SEC under the Exchange Act, could cause our actual results to differ materially from those projected in any forward-looking statements we make. All forward-looking statements speak only as of the date on which they are made. New risks and uncertainties arise over time and it is not possible to predict those events or how they may affect us. Except as required by law, we are not obligated to, and do not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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Defined Terms

In this Quarterly Report on Form 10-Q we refer to Adamas Trust, Inc., together with its consolidated subsidiaries, as “Adamas,” “we,” “us,” “Company,” or “our,” unless we specifically state otherwise or the context indicates otherwise, and we refer to our wholly-owned taxable REIT subsidiaries as “TRSs” and our wholly-owned qualified REIT subsidiaries as “QRSs.” In addition, the following defines certain of the commonly used terms in this report:

•“ABS” refers to debt and/or equity tranches of securitizations backed by various asset classes including, but not limited to, automobiles, aircraft, credit cards, equipment, franchises, recreational vehicles and student loans;

•“Agency ARMs” refers to Agency RMBS comprised of adjustable-rate and hybrid adjustable-rate RMBS;

•“Agency fixed-rate RMBS” refers to Agency RMBS comprised of fixed-rate RMBS;

•“Agency investments” refers to Agency RMBS and TBAs;

•“Agency RMBS” refers to RMBS representing interests in or obligations backed by pools of residential loans guaranteed by a government sponsored enterprise (“GSE”), such as the Federal National Mortgage Association ("Fannie Mae") or the Federal Home Loan Mortgage Corporation ("Freddie Mac"), or an agency of the U.S. government, such as the Government National Mortgage Association (“Ginnie Mae”);

•“ARMs” refers to adjustable-rate residential loans;

•“business purpose loans” refers to (i) short-term loans that are collateralized by residential properties and are made to investors who intend to rehabilitate and sell the residential property for a profit or (ii) loans that finance (or refinance) non-owner occupied residential properties that are rented to one or more tenants;

•“CDO” refers to collateralized debt obligation and includes debt that permanently finances the residential loans held in Consolidated SLST, the Company's residential loans held in securitization trusts and a non-Agency RMBS re-securitization that we consolidate, or consolidated, in our financial statements in accordance with GAAP;

•“CMBS” refers to commercial mortgage-backed securities comprised of commercial mortgage pass-through securities issued by a GSE, as well as PO, IO or mezzanine securities that represent the right to a specific component of the cash flow from a pool of commercial mortgage loans;

•“Consolidated Real Estate VIEs” refers to Consolidated VIEs that own multi-family properties;

•“Consolidated SLST” refers to Freddie Mac-sponsored residential loan securitizations, comprised of seasoned re-performing and non-performing residential loans, of which we own the first loss subordinated securities and certain IOs, that we consolidate in our financial statements in accordance with GAAP;

•“Consolidated VIEs” refers to VIEs where the Company is the primary beneficiary, as it has both the power to direct the activities that most significantly impact the economic performance of the VIE and a right to receive benefits or absorb losses of the entity that could be potentially significant to the VIE and that we consolidate in our financial statements in accordance with GAAP;

•“Constructive” refers to Constructive Loans, LLC, a wholly-owned subsidiary through which the Company originates business purpose loans for residential real estate investors;

•“Cross-collateralized mezzanine lending investment” refers to a cross-collateralized preferred equity and joint venture equity investment in multi-family properties;

•“excess mortgage servicing spread” or “excess MSR” refers to the difference between the contractual servicing fee with Fannie Mae, Freddie Mac or Ginnie Mae and the base servicing fee that is retained as compensation for servicing or subservicing the related mortgage loans pursuant to the applicable servicing contract;

•“GAAP” refers to generally accepted accounting principles within the United States;

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•“IOs” refers collectively to interest only and inverse interest only mortgage-backed securities that represent the right to the interest component of the cash flow from a pool of mortgage loans;

•“MBS” refers to mortgage-backed securities;

•“Mezzanine Lending” refers to preferred equity investments in multi-family properties;

•“MSRs” refers to mortgage servicing rights that represent the contractual right to service residential loans;

•“multi-family CMBS” refers to CMBS backed by commercial mortgage loans on multi-family properties;

•“non-Agency RMBS” refers to RMBS that are not guaranteed by any agency of the U.S. Government or GSE;

•“non-QM loans” refers to residential loans that are not deemed “qualified mortgage,” or “QM,” loans under the rules of the Consumer Financial Protection Bureau;

•“POs” refers to mortgage-backed securities that represent the right to the principal component of the cash flow from a pool of mortgage loans;

•“RMBS” refers to residential mortgage-backed securities backed by adjustable-rate, hybrid adjustable-rate or fixed-rate residential loans;

•“second mortgages” refers to liens on residential properties that are subordinate to more senior mortgages or loans;

•“TBAs” refers to to-be-announced securities that are forward contracts for the purchase or sale of Agency fixed-rate RMBS at a predetermined price, face amount, issuer, coupon, and stated maturity on an agreed-upon future date;

•“TBA dollar roll income” refers to the difference in price between two TBA contracts with the same terms but different settlement dates that are simultaneously bought and sold; and

•“Variable Interest Entity” or “VIE” refers to an entity in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties.

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Investing Activity

During the three months ended March 31, 2026, we continued to expand our investment securities and residential loan portfolios. Our investment activity was offset primarily by repayments and sales of residential loans. The following table presents investment activity for the three months ended March 31, 2026 (dollar amounts in thousands):

December 31, 2025

Acquisitions/Originations (1)

Repayments (2)

Sales

Transfers (3)

Fair Value Changes and Other (4)

March 31, 2026

Investment securities

Agency RMBS and TBAs (5)

$

6,633,476 

$

510,051 

$

(297,626)

$

— 

$

— 

$

(68,034)

$

6,777,867 

Non-Agency RMBS

25,592 

8,100 

(2,500)

— 

— 

(1,032)

30,160 

U.S. Treasury securities

245,713 

58,913 

— 

— 

— 

(4,450)

300,176 

Total investment securities available for sale and TBAs

6,904,781 

577,064 

(300,126)

— 

— 

(73,516)

7,108,203 

Consolidated SLST (6)

151,521 

— 

(3,454)

— 

— 

(1,373)

146,694 

Total investment securities

7,056,302 

577,064 

(303,580)

— 

— 

(74,889)

7,254,897 

Residential loans

3,192,498 

241,092 

(269,793)

(10,301)

238,104 

(31,640)

3,359,960 

Residential loans held for sale

80,707 

400,810 

(882)

(131,610)

(238,104)

10,686 

121,607 

Multi-family loans and equity investments

80,187 

— 

(1,570)

— 

— 

761 

79,378 

Equity investments in consolidated multi-family properties (7)

153,477 

600 

(33,019)

— 

— 

11,858 

132,916 

Single-family rental properties

128,841 

537 

— 

(4,833)

— 

(3,205)

121,340 

MSRs

20,893 

— 

— 

— 

— 

(928)

19,965 

Total investments

$

10,712,905 

$

1,220,103

[Excerpt truncated for page length; source filing is linked above.]

Latest 10-K MD&A

Extracted between Item 7 and the next Item 7A/8 heading after HTML sanitization. Confidence: high. Filing date: 2026-02-20. Report date: 2025-12-31.

Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

General

We are an internally-managed REIT for U.S. federal income tax purposes focused on strategically deploying capital across complementary businesses to generate durable earnings and long-term value for stockholders through disciplined portfolio management and an operating platform designed to capture opportunities across real estate and capital markets. Our current investment portfolio includes credit sensitive single-family and multi-family assets, as well as other types of fixed-income investments such as Agency RMBS. Through our wholly-owned subsidiary, Constructive, we also originate business purpose loans for residential real estate investors. On September 3, 2025, we changed our name from New York Mortgage Trust, Inc. to Adamas Trust, Inc.

Executive Summary

Since 2023, we have actively repositioned our investment portfolio with the objective of enhancing recurring income for our stockholders. Our investment strategy since that time has focused on acquiring assets with less price sensitivity to credit deterioration, like Agency RMBS, and short duration, higher-coupon investments, like business purpose loans. We have also prioritized optimizing our financing structures and expanding our network of originator partnerships to support increased acquisition volumes.

The year ended December 31, 2025 represented a strategically significant period for the Company. The year was marked by our corporate rebranding, acquisition of Constructive, earnings growth, record investment activity and further execution of the Company’s capital rotation strategy designed to enhance recurring income, improve portfolio liquidity and strengthen our operating platform.

Net income attributable to common stockholders was $101.1 million, or $1.12 per share, for the year ended December 31, 2025. Earnings available for distribution (“EAD”) per common share, a non-GAAP financial measure, increased 141% year-over-year to $0.89 per share. GAAP book value per share as of December 31, 2025 increased 3.4% to $9.60 and adjusted book value per share as of December 31, 2025 rose 2.7% to $10.63, resulting in an economic return of 12.72% and 11.01% on GAAP book value per share and adjusted book value per share, respectively, for 2025. Supported by this sustained earnings momentum, our Board of Directors declared quarterly dividends of $0.23 per share in the third and fourth quarters of 2025, a 15% increase from the first and second quarters, equating to a 12.6% dividend yield as of December 31, 2025.

During the year ended December 31, 2025, we achieved the highest level of annual investment activity in our history, expanding our investment portfolio by approximately $3.1 billion, or 42%, to $10.5 billion. Total acquisitions of $6.1 billion were primarily concentrated in Agency RMBS and business purpose loans, including $4.1 billion of Agency investments and $1.7 billion of business purpose loans. Our disciplined capital allocation continued to emphasize liquidity, stability, and shorter-duration exposure, with Agency RMBS now representing greater than a majority of our capital. We believe this repositioning has enhanced the resilience of our earnings profile and strengthened our ability to navigate evolving market conditions.

On July 15, 2025, we completed the acquisition of the remaining 50% interest in Constructive, resulting in full ownership and consolidation of Constructive’s financial results beginning in the third quarter of 2025. Constructive operates in 48 states and originated approximately $1.8 billion of loans over the year ended December 31, 2025, including $864.9 million since July 15, 2025. From July 15, 2025 to December 31, 2025, Constructive generated $26.6 million of mortgage banking income from origination and sale activity and incurred $8.1 million of direct loan origination costs. We believe our integration of Constructive expands the Company's presence in the residential credit ecosystem and establishes a scalable origination platform that we expect will support sustained earnings growth over time.

We also completed several capital markets and financing initiatives during the year ended December 31, 2025 designed to support future portfolio growth and further strengthen our balance sheet. During the year ended December 31, 2025, we completed four securitizations of performing, re-performing, and business purpose loans totaling approximately $945.5 million in net proceeds. In addition, we issued $82.5 million of 9.125% 2030 Senior Notes and $115.0 million of 9.875% 2030 Senior Notes, providing additional flexibility to fund new investments. As of December 31, 2025, our Company Recourse Leverage Ratio and Portfolio Recourse Leverage Ratio (as defined in "Capital Allocation" below) increased to 5.0x and 4.7x, respectively, from 3.0x and 2.9x as of December 31, 2024, primarily reflecting increased Agency RMBS financing, the acquisition and consolidation of Constructive and senior unsecured notes issuance activity.

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We completed the wind-down of our multi-family joint venture equity investments during the year ended December 31, 2025. As of December 31, 2025, our multi-family exposure was limited to our Mezzanine Lending and cross-collateralized mezzanine lending portfolio, which continues to perform well, with a 25.8% payoff rate during the year and an average occupancy rate of 91% across underlying properties.

Our targeted assets include (i) Agency RMBS, (ii) residential loans, including business purpose loans, (iii) non-Agency RMBS and (iv) certain other mortgage-, residential housing- and credit-related assets, as well as strategic investments in companies from which we purchase, or may in the future purchase, our targeted assets. Subject to maintaining our qualification as a REIT and the maintenance of our exclusion from registration as an investment company under the Investment Company Act, we also may opportunistically acquire and manage various other types of mortgage-, residential housing- and other credit-related or alternative investments that we believe will compensate us appropriately for the risks associated with them, including, without limitation, CMBS, collateralized mortgage obligations, MSRs, excess mortgage servicing spreads, preferred equity and joint venture equity investments in multi-family properties, securities issued by newly originated securitizations, including credit sensitive securities from these securitizations, ABS and debt or equity investments in alternative assets or businesses.

In January 2026, we completed the issuance of $90.0 million of our 9.250% Senior Notes due 2031 in an underwritten public offering, receiving $86.6 million in net proceeds.

In February 2026, the Company redeemed its 2026 Senior Notes at 100% of the $100.0 million principal amount plus accrued but unpaid interest to, but excluding, the redemption date, for a total payment of $101.5 million. The Company recognized a loss on extinguishment of debt related to the redemption totaling approximately $0.3 million.

Looking ahead, we expect to maintain a disciplined and measured approach to portfolio growth, supported by the integration of Constructive’s origination platform and our continued focus on high-quality, income-producing assets. We believe our current balance sheet, diversified capital sources and expanded origination capacity position us to capitalize on market opportunities, further scale recurring earnings, and enhance long-term stockholder value.

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Historical Financial Information

The following tables set forth our selected historical operating and financial data. The selected historical operating and balance sheet data for the years ended and as of December 31, 2025, 2024, 2023, 2022 and 2021 have been derived from our historical financial statements. Prior year information has been conformed to current year financial statement presentation.

The information presented below is only a summary and does not provide all of the information contained in our historical consolidated financial statements, including the related notes. You should read the information below in conjunction with our historical consolidated financial statements, including the related notes (amounts in thousands, except per share data):

Selected Statement of Operations Data:

For the Years Ended December 31,

2025

2024

2023

2022

2021

Interest income

$

601,948 

$

401,280 

$

258,660 

$

258,388 

$

206,866 

Interest expense

452,647 

317,425 

192,134 

129,419 

79,284 

Net interest income

149,301 

83,855 

66,526 

128,969 

127,582 

Net loss from real estate

(12,417)

(42,841)

(31,302)

(113,579)

(17,583)

Other income (loss)

123,859 

(42,236)

(39,431)

(262,169)

156,511 

General and administrative expenses

72,656 

48,672 

49,565 

52,440 

48,908 

Portfolio operating expenses

28,011 

30,688 

23,952 

40,888 

26,668 

Loan origination costs

8,101 

— 

— 

— 

— 

Financing transaction costs

14,173 

12,335 

— 

— 

— 

Net income (loss) attributable to Company's common stockholders

101,106 

(103,785)

(90,035)

(340,577)

144,176 

Basic earnings (loss) per common share

$

1.12 

$

(1.14)

$

(0.99)

$

(3.61)

$

1.52 

Diluted earnings (loss) per common share

$

1.10 

$

(1.14)

$

(0.99)

$

(3.61)

$

1.51 

Dividends declared per common share

$

0.86 

$

0.80 

$

1.20 

$

1.60 

$

1.60 

Weighted average shares outstanding-basic

90,427 

90,815 

91,042 

94,322 

94,808 

Weighted average shares outstanding-diluted

91,510 

90,815 

91,042 

94,322 

95,242 

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Selected Balance Sheet Data:

As of December 31,

2025

2024

2023

2022

2021

Investment securities available for sale

$

6,904,781 

$

3,828,544 

$

2,013,817 

$

99,559 

$

200,844 

Residential loans

4,358,175 

3,841,738 

3,084,303 

3,525,080 

3,575,601 

Residential loans held for sale

80,707 

— 

— 

— 

— 

Multi-family loans

55,476 

86,192 

95,792 

87,534 

120,021 

Equity investments

24,711 

113,492 

147,116 

179,746 

239,631 

Real estate, net

553,496 

623,407 

1,131,819 

692,968 

1,017,583 

Assets of disposal group held for sale

1,256 

118,613 

426,017 

1,151,784 

— 

Goodwill

22,396 

— 

— 

— 

— 

Total assets (1)

12,638,847 

9,217,282 

7,401,328 

6,240,745 

5,658,301 

Repurchase agreements and warehouse facilities

6,753,417 

4,012,225 

2,741,113 

737,023 

554,259 

Collateralized debt obligations

3,511,802 

2,978,444 

1,870,517 

2,102,717 

1,522,221 

Senior unsecured notes

360,437 

159,196 

98,111 

97,384 

96,704 

Subordinated debentures

45,000 

45,000 

45,000 

45,000 

45,000 

Convertible notes

— 

— 

— 

— 

137,898 

Mortgages payable on real estate, net

332,131 

366,606 

784,421 

394,707 

709,356 

Liabilities of disposal group held for sale

122 

97,065 

386,024 

883,812 

— 

Total liabilities (1)

11,208,410 

7,806,148 

5,773,202 

4,376,634 

3,226,519 

Redeemable non-controlling interest in Consolidated VIEs

3,016 

12,359 

28,061 

63,803 

66,392 

Company's stockholders' equity

1,426,922 

1,394,720 

1,579,612 

1,767,216 

2,341,031 

Total equity

1,427,421 

1,398,775 

1,600,065 

1,800,308 

2,365,390 

(1)Our consolidated balance sheets include assets and liabilities of Consolidated VIEs, as the Company is the primary beneficiary of these VIEs. Assets and liabilities of the Company's Consolidated VIEs for each of the balance sheet dates presented are included in the following table (dollar amounts in thousands):

As of December 31,

2025

2024

2023

2022

2021

Consolidated VIEs

Assets

$

4,367,560 

$

3,988,584 

$

3,816,777 

$

4,261,097 

$

2,940,513 

Liabilities

$

3,881,273 

$

3,477,211 

$

3,076,818 

$

3,403,257 

$

2,235,665 

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Investing Activity

During the year ended December 31, 2025, we continued to expand our investment securities and residential loan portfolios and completed our purchase of the outstanding membership interests in Constructive that were not previously owned. Our investment activity was offset primarily by repayments and sales of investment securities and residential loans. The following table presents investing activity for the year ended December 31, 2025 (dollar amounts in thousands):

December 31, 2024

Acquisitions/Originations (1)

Repayments (2)

Sales

Transfers/Initial Consolidation (3)

Fair Value Changes and Other (4)

December 31, 2025

Investment securities

Agency RMBS and TBAs (5)

$

3,136,812 

$

4,118,518 

$

(656,741)

$

(91,791)

$

— 

$

126,678 

$

6,633,476 

Non-Agency RMBS

69,687 

1,550 

(39,714)

(4,573)

— 

(1,358)

25,592 

U.S. Treasury securities

622,045 

274,209 

— 

(658,763)

— 

8,222 

245,713 

Total investment securities available for sale and TBAs

3,828,544 

4,394,277 

(696,455)

(755,127)

— 

133,542 

6,904,781 

Consolidated SLST (6)

148,508 

12,179 

(14,820)

— 

— 

5,654 

151,521 

Total investment securities

3,977,052 

4,406,456 

(711,275)

(755,127)

— 

139,196 

7,056,302 

Residential loans (7)

2,876,066 

1,665,218 

(1,329,193)

(169,850)

131,450 

18,807 

3,192,498 

Residential loans held for sale

— 

840,069 

(259)

(450,317)

(329,174)

20,388 

80,707 

Preferred equity investments, mezzanine loans and equity investments

199,684 

— 

(62,400)

— 

(37,664)

(19,433)

80,187 

Equity investments in consolidated multi-family properties (8)

151,210 

3,399 

(10,844)

— 

— 

9,188 

152,953 

Equity investments in disposal group held for sale (9)

19,504 

3,080 

(16,230)

(500)

500 

(5,830)

524 

Single-family rental properties

142,246 

1,488 

— 

(7,993)

— 

(6,900)

128,841 

MSRs

21,003 

— 

— 

— 

3,546 

(3,656)

20,893 

Total investments

$

7,386,765 

$

6,919,710 

$

(2,130,201)

$

(1,383,787)

$

(231,342)

$

151,760 

$

10,712,905 

(1)Includes draws funded for business purpose bridge loans and existing equity investments in consolidated multi-family properties, cost basis of new TBA positions and capitalized costs for single-family rental properties.

(2)Includes principal repayments and return of invested capital.

(3)Includes residential loans, residential loans held for sale and mortgage servicing rights resulting from the Company's acquisition on July 15, 2025 of the membership interests in Constructive that were not previously owned by the Company, which resulted in consolidation of Constructive into the Company's financial statements. Also includes in-kind distribution of mortgage servicing rights received from Constructive prior to July 15, 2025.

(4)Primarily includes net realized gains or losses, changes in net unrealized gains or losses (including reversals of previously recognized net unrealized gains or losses on sales or redemptions), net amortization/accretion/depreciation, net loss from real estate attributable to the Company and transfers of residential loans to real estate owned.

(5)Includes TBAs that are recorded as derivative instruments in the Company's consolidated financial statements. There were no TBAs outstanding as of December 31, 2025 and 2024.

(6)Consolidated SLST is primarily presented on our consolidated balance sheets as residential loans, at fair value and collateralized debt obligations, at fair value. A reconciliation to our consolidated financial statements as of December 31, 2025 and 2024, respectively, follows (dollar amounts in thousands):

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December 31, 2025

December 31, 2024

Residential loans, at fair value

$

1,165,677 

$

965,672 

Deferred interest (a)

(7,237)

(5,573)

Less: Collateralized debt obligations, at fair value

(1,006,919)

(811,591)

Consolidated SLST investment securities owned by Adamas

$

151,521 

$

148,508 

(a)Included in other liabilities on our consolidated balance sheets as of December 31, 2025 and 2024.

(7)Residential loans include transfers of originated loans from Constructive segment to investment portfolio segment at fair value on the date of transfer.

(8)See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Balance Sheet Analysis—Equity Investments in Multi-Family Entities" for a reconciliation of equity investments in consolidated multi-family properties and disposal group held for sale to the Company's consolidated balance sheets.

(9)The Company completed its disposition of the real property held by its joint venture equity investments in multi-family properties during the year ended December 31, 2025. Accordingly, equity investments in disposal group held for sale as of December 31, 2025 consisted of assets and liabilities held by the respective Consolidated VIEs for the conclusion of business operations after the aforementioned real property sales. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Balance Sheet Analysis—Equity Investments in Multi-Family Entities" for a reconciliation of equity investments in consolidated multi-family properties and disposal group held for sale to the Company's consolidated balance sheets.

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Current Market Conditions and Commentary

The results of our business operations are affected by a number of factors, many of which are beyond our control, and primarily depend on, among other things, the level of our net interest income and the market value of our assets, which are driven by numerous factors including changes in interest rates and the supply and demand for mortgage-, housing- and credit-related assets in the marketplace, market volatility, our ability to identify and acquire assets on favorable terms, our ability to dispose of assets from time to time on favorable terms, the ability of our operating partners, tenants and borrowers of our loans and those that underlie our investment securities to meet their payment obligations, our ability to control operating costs, the terms and availability of adequate financing and capital, general economic and real estate conditions (both on a national and local level), the impact of government actions in the real estate, mortgage, credit and financial markets, and the credit performance of our credit sensitive assets.

Financial markets experienced strong positive performance in the fourth quarter of and full year 2025, spurred in part by the Federal Reserve’s cuts to the target range for the federal funds rate and significant investment in artificial intelligence, among other things, and in the face of the longest U.S. federal government shutdown in history near year end. The Dow Jones Industrial Average finished the fourth quarter of 2025 up 3.59% and grew 12.97% for the full year 2025. The Nasdaq Composite Index finished the fourth quarter of 2025 up 2.57% and grew 20.36% for the full year 2025. Mortgage-related markets experienced volatility and relatively improved performance in the fourth quarter of and full year 2025. Trade policy turbulence, labor market uncertainty, elevated inflation and geopolitical instability have cautioned some economic outlooks, with concerns regarding the potential for stagflation persisting. We anticipate that due to ongoing uncertainty related to trade policy, the labor market, inflation and geopolitical instability, markets and the pricing for many of our assets will continue to experience volatility in 2026.

The market conditions discussed below significantly influence our investment strategy and results:

Select U.S. Financial and Economic Data. The U.S. economy grew modestly in 2025 with real gross domestic product (“GDP”) increasing by 2.2% (advanced estimate) for full year 2025, as compared to the GDP growth of 2.8% recorded for full year 2024. GDP grew at a 1.4% (advanced estimate) annualized rate in the fourth quarter of 2025. By these estimates, GDP growth continued in the fourth quarter of and full year 2025, overcoming a 0.6% contraction in GDP seen in the first quarter of 2025; however, inflation remains persistently above the Federal Reserve’s target of two percent and the labor market has shown signs of cooling. Uncertainty about how the Federal Reserve may adjust its monetary policy or the target range for the federal funds rate in response to such macroeconomic trends and the continued independence of the Federal Reserve may limit or undermine business activity and the potential for future GDP growth or result in further volatility, which could negatively impact the value of credit investments.

The U.S. labor market experienced some cooling over the course of the year and into the fourth quarter as the unemployment rate rose throughout the year. According to the U.S. Department of Labor, the U.S. unemployment rate rose from 4.1% at the end of December 2024 to 4.5% at the end of November, which represented the highest unemployment rate since October 2021, and settled at 4.4% at the end of December 2025. Additionally, over the course of 2025, the number of nonfarm job openings trended downward and, in July 2025 for the first time since April 2021, the number of unemployed persons exceeded the number of available job openings, further signaling a potential softening in the labor market. Uncertainty with respect to economic and trade policies and higher costs due to inflation, particularly with respect to the construction industry, have been suggested by some market commentators as having contributed to the slackening labor market.

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The Federal Reserve raised the target range for the federal funds rate a total of 5.25% in 2022 and 2023, bringing the range to its highest level in over 22 years and holding the range at that level for 14 months. In 2024, the Federal Reserve cut the target range by 100 basis points, in aggregate, and held the rate at that range until September 2025. Then, in the last four months of 2025, the Federal Reserve cut the target range for the federal funds rate three times for an aggregate reduction of 75 basis points, bringing the target range to its lowest level since September 2022. Expectations among market commentators for additional rate cuts to the target range in the near term are subdued. In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Federal Reserve stated that it will carefully assess incoming data, the evolving outlook, and the balance of risks to the Federal Reserve’s dual mandate of achieving maximum employment and inflation at a rate of two percent over the longer run. In its December 2025 statement, the Federal Reserve noted that job gains slowed in 2025, the unemployment rate edged up, inflation remained somewhat elevated and downside risks to employment rose in recent months. As reflected on the “dot plot” included in the projection materials from the Federal Reserve’s December 2025 meeting, Federal Reserve officials’ views of the appropriateness of additional cuts to the target range for the federal funds rate by the end of 2026 are divided, though a majority of officials indicated that one or more additional cuts by the end of 2026 would be appropriate. Higher interest rates tend to put pressure on our investments, mortgage borrowers, tenants, our operating partners, our financing and capital costs and economic growth generally.

Concerns regarding an economic recession – a significant decline in economic activity that is spread across the economy and that lasts more than a few months, as defined by the National Bureau of Economic Research – in the U.S. retreated in 2025, but market observers and the Federal Reserve are closely monitoring the labor market and inflation, among other items, for resurgent indicators of recession risk. According to some market commentators, uncertain and evolving U.S. trade and tariff policy and threats to Federal Reserve independence also present downside risks to the economy. Tariffs are often considered to be inflationary, including with respect to construction costs, with such higher costs frequently borne by consumers. Higher prices resulting from tariffs may generally lead to a reduction in economic activity, particularly if such increase in prices is not offset by a reduction in interest rates. An economic recession, stagnating economic growth or market disruption may put pressure on the ability of our operating partners, joint ventures, tenants and borrowers to meet their obligations to us, and would likely adversely impact the value of our assets, among other things, any of which could materially adversely affect our results of operations and financial condition.

Single-Family Homes and Residential Mortgage Market. Throughout 2025, the residential real estate market remained competitive for home buyers. Data released by the S&P Dow Jones Indices for their S&P Cotality Case-Shiller U.S. National Home Price NSA Indices for October 2025 showed that, on average, home prices increased 1.3% for the 20-City Composite over October 2024. Additionally, according to the National Association of Realtors (“NAR”), existing home sales in December 2025 increased 5.1% month-over-month and 1.4% year-over-year. NAR also reported that the median existing-home sales price for all housing types in December 2025 was $405,400, up 0.4% from December 2024, which marked the 30th consecutive month of year-over-year price increases. NAR notes that total housing inventory as of the end of December 2025 was down 18.1% month-over-month and up 3.5% year-over-year and that the supply of unsold housing inventory sat at 3.3 months as of the end of December 2025, up 0.1 months from December 2024. Despite interest rates trending downward over the course of 2025, such rates remained relatively elevated and continued to contribute to affordability challenges for home buyers. According to Freddie Mac, the weekly average 30-year fixed-rate mortgage was 6.09% as of January 22, 2026, down 0.87% year-over-year. Declining single-family housing fundamentals may adversely impact the overall credit profile and value of our existing portfolio of single-family residential credit investments and the value of our single-family rental properties, as well as the availability of certain of our targeted assets.

Rental Housing. According to RealPage Analytics (“RealPage”), effective rents for professionally managed apartments fell 1.7% in the fourth quarter of 2025 and 0.6% for 2025. RealPage noted that, in general, markets located in the South and West of the U.S. experienced the greatest growth in apartment supply in recent years and the greatest declines in rents over the course of 2025. Further, Zillow Research forecasts that relatively slower rent growth for both single-family and multi-family rental housing is expected to continue through 2026. Weakening multi-family housing fundamentals, including, among other things, increasing supply of apartments and declining rents in the markets or submarkets in which we invest, increasing interest rates, widening capitalization rates and reduced liquidity for owners of multi-family properties, may cause our operating partners to fail to meet their obligations to us and/or contribute to reduced cash flows from and/or valuation declines for multi-family properties, and in turn, many of the multi-family investments that we own.

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Credit Spreads. Investment grade and high-yield credit spreads both experienced significant widening in the second quarter of 2025 before tightening through year end and finishing nearly flat to the start of 2025. At the end of 2025, investment grade spreads widened 3 basis points as compared to the start of the fourth quarter of 2025 and tightened 3 basis points as compared to the start of 2025. At the end of 2025, high-yield credit spreads widened 1 basis point as compared to the start of the fourth quarter of 2025 and tightened 11 basis points as compared to the start of 2025. Tightening credit spreads generally increase the value of many of our credit sensitive assets, while widening credit spreads tend to have a negative impact on the value of many of our credit sensitive assets.

Financing Markets. From June 2022 until the end of August 2024, the Treasury curve inverted with short term yields greater than long term yields, which was the longest inverted Treasury curve on record. Inversions and subsequent normalizations of this spread are generally considered to be indicators of a recession in the near term, although some market commentators have cautioned against August 2024’s uninversion being such an indicator. On December 31, 2025, the spread between the 2-Year U.S. Treasury yield and the 10-Year U.S. Treasury yield closed at 71 basis points, as compared to a 33 basis point spread on December 31, 2024. This spread is important as it is indicative of opportunities for investing in levered assets. Increases in interest rates raise the costs of many of our liabilities, while overall interest rate volatility generally increases the costs of hedging and may place downward pressure on some of our strategies.

Monetary Policy and Recent Regulatory Developments. The Federal Reserve took a number of actions to stabilize markets during the COVID-19 pandemic. From March 2020 until March 2022, the Federal Reserve implemented an asset purchase program aimed at providing liquidity to the U.S. Treasury and Agency RMBS markets. Under the Federal Reserve’s asset purchase program, the Federal Reserve’s balance sheet grew from about $4.2 trillion in assets at the start of March 2020 to about $8.9 trillion in assets at the end of the program in March 2022. In June 2022, the Federal Reserve shifted course and began shrinking its balance sheet by reducing its holdings of U.S. Treasuries and Agency RMBS. In December 2025, the Federal Reserve halted the reduction of its holding of U.S. Treasuries and announced an intention to purchase short-term U.S. Treasuries in an effort to alleviate expected pressures in money markets, but the Federal Reserve continued to allow up to $35 billion of Agency RMBS to roll off its balance sheet each month. The Federal Reserve’s participation in the Agency RMBS market can materially impact mortgage market conditions, affecting supply, pricing, and returns. In January 2026, the FHFA raised the cap on the amount of Agency RMBS that Fannie Mae and Freddie Mac can hold from $40 billion each to $225 billion each, and the current administration instructed Fannie Mae and Freddie Mac to purchase $200 billion in Agency RMBS. Asset purchases by the Federal Reserve generally drive Agency RMBS values higher and tighten mortgage spreads, which increases our adjusted book value but reduces the return potential on new investments. The announced January 2026 purchases, or any other purchases, by Fannie Mae and/or Freddie Mac of Agency RMBS, though such purchases are, and are expected to be, on a smaller scale than purchases of Agency RMBS conducted by the Federal Reserve in recent years, may have similar effects on us and the market. Conversely, actual or anticipated reductions in the amount of the Federal Reserve’s Agency RMBS holdings or its purchasing pace typically lead to lower values and wider spreads, thereby lowering our adjusted book value while improving the return potential on new acquisitions.

Near the end of 2025 and into 2026, some market commentators began expressing concerns about the ongoing independence of the Federal Reserve to make monetary policy decisions, including setting interest rates, without direct interference from the executive branch or U.S. Congress. If the independence of the Federal Reserve is eroded or eliminated, or perceived to be, economists and market commentators suggest that higher inflation, greater stock market volatility and higher long-term interests rates on mortgages and other loans could result. Such outcomes may limit or undermine business activity or raise the costs of many of our liabilities, which could negatively impact the value of our investments

We own and rent single-family rental homes to families that are eligible to receive housing assistance through the U.S. Department of Housing and Urban Development Housing Choice Vouchers program. In January 2026, the president issued an executive order (the “Order”) directing executive agencies to identify ways to prevent GSEs from facilitating the acquisition by large institutional investors of single-family homes or from selling homes owned by the U.S. federal government to large institutional investors and instructs the U.S. Department of Housing and Urban Development to track single-family rental owners that receive federal housing assistance to determine any involvement of large institutional investors, among other things. The Order does not address immediate steps for implementation. There can be no guarantee how the Order will be implemented, what legislation may be enacted to further the Order, or how “single-family” or “large institutional investor” will be defined; however, such policies could materially adversely affect our investments in single-family rental homes.

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Fannie Mae and Freddie Mac remain under the conservatorship of the FHFA. The current administration is revisiting the idea of taking Fannie Mae and Freddie Mac public. In the fourth quarter of 2025, reports surfaced that investment banks have been in preliminary discussions with the current administration about potential public offerings of Fannie Mae and/or Freddie Mac securities and administration officials indicated that such discussions were continuing to advance. Together, Fannie Mae and Freddie Mac guarantee a significant amount of the nearly $13 trillion U.S. home loan market. If the conservatorships of Fannie Mae and Freddie Mac were ended, Fannie Mae and Freddie Mac may need to hold additional capital against riskier loans which may, in turn, cause Fannie Mae and Freddie Mac to charge borrowers higher mortgage rates or to lessen the amount of their lending, among other things. We invest in Agency RMBS and other mortgage-related assets that may be guaranteed by Fannie Mae or Freddie Mac. Higher interest rates tend to put pressure on our investments, mortgage borrowers, tenants, our operating partners and economic growth generally. For further discussion, please see the risk factor titled “The federal conservatorship of Fannie Mae and Freddie Mac and related efforts, along with any changes in such conservatorship or laws and regulations affecting the relationship between Fannie Mae, Freddie Mac and Ginnie Mae and the U.S. Government, may materially adversely affect our business, financial condition and results of operations, and our ability to pay dividends to our shareholders” in Part I, Item “1A. Risk Factors” of this Annual Report on Form 10-K.

The scope and nature of the actions the Federal Reserve or other governmental authorities will ultimately undertake are unknown and will continue to evolve. There can be no assurance as to how, in the long term, these and other actions, as well as the negative impacts from ongoing geopolitical instability and uncertainty surrounding inflation, interest rates, U.S. tariff and trade policies and the outlook for the U.S. and global economies, will affect the efficiency, liquidity and stability of the financial, credit and mortgage markets, and thus, our business. Greater uncertainty frequently leads to wider asset spreads or lower prices and higher hedging costs.

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Full Year 2025 Summary

Earnings and Return Metrics

The following table presents key earnings and return metrics for the year ended December 31, 2025 (dollar amounts in thousands, except per share data):

Year Ended December 31, 2025

Net income attributable to Company's common stockholders

$

101,106 

Net income attributable to Company's common stockholders per share (basic)

$

1.12 

Earnings available for distribution attributable to Company's common stockholders (1)

$

80,624 

Earnings available for distribution per common share (1)

$

0.89 

Yield on average interest earning assets (1) (2)

6.36 

%

Interest income

$

601,948 

Interest expense

$

452,647 

Net interest income

$

149,301 

Net interest spread (1) (3)

1.46 

%

Book value per common share at the end of the period

$

9.60 

Adjusted book value per common share at the end of the period (1)

$

10.63 

Economic return on book value (4)

12.72 

%

Economic return on adjusted book value (5)

11.01 

%

Dividends per common share

$

0.86 

(1)Represents a non-GAAP financial measure. A reconciliation of the Company's non-GAAP financial measures to their most directly comparable GAAP measure is included in "Non-GAAP Financial Measures" elsewhere in this section.

(2)Calculated as the quotient of our adjusted interest income and our average interest earning assets and excludes all Consolidated SLST assets other than those securities owned by the Company.

(3)Our calculation of net interest spread may not be comparable to similarly-titled measures of other companies who may use a different calculation.

(4)Economic return on book value is based on the periodic change in GAAP book value per common share plus dividends declared per common share, if any, during the period.

(5)Economic return on adjusted book value is based on the periodic change in adjusted book value per common share, a non-GAAP financial measure, plus dividends declared per common share, if any, during the period.

Key Developments During Full Year 2025

Investing Activities

•Purchased approximately $4.4 billion of investment securities, including $4.1 billion of Agency investments.

•Acquired approximately $1.7 billion of residential loans.

•Exited remaining multi-family joint venture equity investments in disposal group.

•Received approximately $79.2 million in proceeds from redemptions of Mezzanine Lending investments.

•Acquired the outstanding 50% ownership interests in Constructive that were not previously owned by the Company through the consummation of a membership interest purchase agreement on July 15, 2025.

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Financing Activities

•Completed the issuance of $82.5 million in aggregate principal amount of our 9.125% Senior Notes due 2030 in an underwritten public offering. The total net proceeds to us from the offering of the notes, after deducting the underwriters' discount and commissions and offering expenses, were approximately $79.3 million.

•Completed the issuance of $115.0 million in aggregate principal amount of our 9.875% Senior Notes due 2030 in public offerings. The total net proceeds to us from the offerings of the notes, after deducting the underwriters' discount and commissions and offering expenses, as applicable, were approximately $111.4 million.

•Completed four securitizations of residential loans, resulting in approximately $945.5 million in aggregate net proceeds to us after deducting expenses associated with the securitization transactions.

•Exercised our right to optional redemptions of three residential loan securitizations with aggregate outstanding principal balances of $424.6 million at the time of redemption.

•Increased common stock dividend declared to $0.23 per common share for the final two quarters of 2025.

Subsequent Developments

•On January 13, 2026, we completed the issuance of $90.0 million in aggregate principal amount of our 9.25% Senior Notes due 2031 in an underwritten public offering. The total net proceeds to us from the offering of the notes, after deducting the underwriters' discount and commissions and offering expenses, were approximately $86.6 million.

•In January 2026, we completed a new securitization of residential loans resulting in approximately $309.1 million of net proceeds to us after deducting expenses associated with the transaction. We utilized the net proceeds to repay approximately $287.3 million on outstanding repurchase agreements related to residential loans.

•On February 2, 2026, we redeemed our 5.75% Senior Notes due 2026 at 100% of the $100.0 million principal amount plus accrued but unpaid interest to, but excluding, the redemption date, for a total payment of $101.5 million.

•On February 16, 2026, our Board of Directors approved extensions of our common stock repurchase program, under which $188.2 million of the approved amount remained available for repurchase, and our preferred stock repurchase program, under which $97.6 million of the approved amount remained available for repurchase. The expiration dates of both stock repurchase programs were extended from March 31, 2026 to March 31, 2027.

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Capital Allocation

The following provides an overview of the allocation of our total equity as of December 31, 2025 and 2024, respectively. We fund our investing and operating activities with a combination of cash flow from operations, proceeds from common and preferred equity and debt securities offerings, short-term and longer-term repurchase agreements and warehouse facilities and CDOs. A detailed discussion of our liquidity and capital resources is provided in “Liquidity and Capital Resources” elsewhere in this section.

The following tables set forth our allocated capital at December 31, 2025 and 2024, respectively (dollar amounts in thousands).

At December 31, 2025:

Investment Portfolio

Constructive

Corporate/Other

Total

Investment securities available for sale

$

6,904,781 

$

— 

$

— 

$

6,904,781 

Residential loans

4,224,864 

133,311 

— 

4,358,175 

Consolidated SLST CDOs

(1,006,919)

— 

— 

(1,006,919)

Residential loans held for sale

— 

80,707 

— 

80,707 

Multi-family loans

55,476 

— 

— 

55,476 

Equity investments

24,711 

— 

— 

24,711 

Equity investments in consolidated multi-family properties (1)

152,953 

— 

— 

152,953 

Equity investments in disposal group held for sale (2)

524 

— 

— 

524 

Single-family rental properties

128,841 

— 

— 

128,841 

Mortgage servicing rights

20,868 

25 

— 

20,893 

Total investments

10,506,099 

214,043 

— 

10,720,142 

Liabilities:

Repurchase agreements and warehouse facilities

(6,557,825)

(195,592)

— 

(6,753,417)

Collateralized debt obligations

Residential loan securitization CDOs

(2,439,607)

— 

— 

(2,439,607)

Non-Agency RMBS re-securitization

(65,276)

— 

— 

(65,276)

Senior unsecured notes

— 

— 

(360,437)

(360,437)

Subordinated debentures

— 

— 

(45,000)

(45,000)

Cash, cash equivalents and restricted cash (3)

113,478 

16,282 

196,650 

326,410 

Goodwill

— 

22,396 

— 

22,396 

Cumulative adjustment of redeemable non-controlling interest to estimated redemption value

(42,222)

— 

— 

(42,222)

Other

119,554 

10,682 

(66,303)

63,933 

Net Company capital allocated

$

1,634,201 

$

67,811 

$

(275,090)

$

1,426,922 

Company Recourse Leverage Ratio (4)

5.0

x

Portfolio Recourse Leverage Ratio (5)

4.7

x

(1)Represents the Company's equity investments in consolidated multi-family properties that are not in disposal group held for sale. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Balance Sheet Analysis—Equity Investments in Multi-Family Entities" for a reconciliation of equity investments in consolidated multi-family properties and disposal group held for sale to the Company's consolidated financial statements.

(2)Represents the Company's equity investments in consolidated multi-family properties that are held for sale in disposal group. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Balance Sheet Analysis—Equity Investments in Multi-Family Entities" for a reconciliation of equity investments in consolidated multi-family properties and disposal group held for sale to the Company's consolidated financial statements.

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(3)Excludes cash in the amount of $4.4 million held in the Company's equity investments in consolidated multi-family properties and equity investments in consolidated multi-family properties in disposal group held for sale. Restricted cash of $132.0 million is included in the Company's accompanying consolidated balance sheets in other assets.

(4)Represents the Company's total outstanding recourse repurchase agreement and warehouse facility financing, subordinated debentures and senior unsecured notes divided by the Company’s total stockholders’ equity. Does not include Consolidated SLST CDOs amounting to $1.0 billion, residential loan securitization CDOs amounting to $2.4 billion, non-Agency RMBS re-securitization CDOs amounting to $65.3 million and mortgages payable on real estate totaling $332.1 million as they are non-recourse debt.

(5)Represents the Company's outstanding recourse repurchase agreement and warehouse facility financing divided by the Company’s total stockholders’ equity.

At December 31, 2024:

Investment Portfolio

Corporate/Other

Total

Investment securities available for sale

$

3,828,544 

$

— 

$

3,828,544 

Residential loans

3,841,738 

— 

3,841,738 

Consolidated SLST CDOs

(811,591)

— 

(811,591)

Multi-family loans

86,192 

— 

86,192 

Equity investments

113,492 

— 

113,492 

Equity investments in consolidated multi-family properties (1)

151,210 

— 

151,210 

Equity investments in disposal group held for sale (2)

19,504 

— 

19,504 

Single-family rental properties

142,246 

— 

142,246 

Mortgage servicing rights

21,003 

— 

21,003 

Total investments

7,392,338 

— 

7,392,338 

Liabilities:

Repurchase agreements

(4,012,225)

— 

(4,012,225)

Collateralized debt obligations

Residential loan securitization CDOs

(2,096,096)

— 

(2,096,096)

Non-Agency RMBS re-securitization

(70,757)

— 

(70,757)

Senior unsecured notes

— 

(159,196)

(159,196)

Subordinated debentures

— 

(45,000)

(45,000)

Cash, cash equivalents and restricted cash (3)

146,158 

178,716 

324,874 

Cumulative adjustment of redeemable non-controlling interest to estimated redemption value

(40,675)

— 

(40,675)

Other

141,261 

(39,804)

101,457 

Net Company capital allocated

$

1,460,004 

$

(65,284)

$

1,394,720 

Company Recourse Leverage Ratio (4)

3.0 x

Portfolio Recourse Leverage Ratio (5)

2.9 x

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(1)Represents the Company's equity investments in consolidated multi-family properties that are not in disposal group held for sale. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Balance Sheet Analysis—Equity Investments in Multi-Family Entities" for a reconciliation of equity investments in consolidated multi-family properties and disposal group held for sale to the Company's consolidated financial statements.

(2)Represents the Company's equity investments in consolidated multi-family properties that are held for sale in disposal group. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Balance Sheet Analysis—Equity Investments in Multi-Family Entities" for a reconciliation of equity investments in consolidated multi-family properties and disposal group held for sale to the Company's consolidated financial statements.

(3)Excludes cash in the amount of $6.6 million held in the Company's equity investments in consolidated multi-family properties and equity investments in consolidated multi-family properties in disposal group held for sale. Restricted cash of $161.6 million is included in the Company's accompanying consolidated balance sheets in other assets.

(4)Represents the Company's total outstanding recourse repurchase agreement financing, subordinated debentures and senior unsecured notes divided by the Company’s total stockholders’ equity. Does not include non-recourse repurchase agreement financing amounting to $11.0 million, Consolidated SLST CDOs amounting to $811.6 million, residential loan securitization CDOs amounting to $2.1 billion, non-Agency RMBS re-securitization CDOs amounting to $70.8 million and mortgages payable on real estate, including mortgages payable on real estate of disposal group held for sale, totaling $460.0 million as they are non-recourse debt.

(5)Represents the Company's outstanding recourse repurchase agreement financing divided by the Company’s total stockholders’ equity.

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Results of Operations

The following discussion provides information regarding our results of operations for the years ended December 31, 2025 and 2024, including a comparison of year-over-year results and related commentary. A number of the tables contain a “change” column that indicates the amount by which results from the year ended December 31, 2025 are greater or less than the results from the year ended December 31, 2024. Unless otherwise specified, references in this section to increases or decreases in 2025 refer to the change in results for the year ended December 31, 2025 when compared to the year ended December 31, 2024. For a discussion related to our results of operations for the year ended December 31, 2024 compared to the year ended December 31, 2023, please refer to Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024, which was filed with the SEC on February 21, 2025 and is available on the SEC’s website at www.sec.gov.

The following table presents the main components of our net income (loss) for the years ended December 31, 2025 and 2024, respectively (dollar amounts in thousands, except per share data):

For the Years Ended December 31,

2025

2024

$ Change

Interest income

$

601,948 

$

401,280 

$

200,668 

Interest expense

452,647 

317,425 

135,222 

Total net interest income

149,301 

83,855 

65,446 

Total net loss from real estate

(12,417)

(42,841)

30,424 

Total other income (loss)

123,859 

(42,236)

166,095 

General and administrative expenses

72,656 

48,672 

23,984 

Portfolio operating expenses

28,011 

30,688 

(2,677)

Loan origination costs

8,101 

— 

8,101 

Financing transaction costs

14,173 

12,335 

1,838 

Income (loss) from operations before income taxes

137,802 

(92,917)

230,719 

Income tax expense

145 

1,036 

(891)

Net loss attributable to non-controlling interests

11,391 

31,924 

(20,533)

Net income (loss) attributable to Company

149,048 

(62,029)

211,077 

Preferred stock dividends

(47,942)

(41,756)

(6,186)

Net income (loss) attributable to Company's common stockholders

101,106 

(103,785)

204,891 

Basic earnings (loss) per common share

$

1.12 

$

(1.14)

$

2.26 

Diluted earnings (loss) per common share

$

1.10 

$

(1.14)

$

2.24 

Interest Income and Interest Expense

Interest income increased in 2025 primarily due to increased investments in Agency RMBS and business purpose loans. We also recognized additional interest income from residential loans consolidated in connection with the purchase of a Consolidated SLST subordinated bond in 2025. The increase in interest expense in 2025 was due primarily to increases in financing obtained to fund investing activity through repurchase agreements and securitizations, the issuance of senior unsecured notes and additional expense related to CDOs consolidated in connection with the Consolidated SLST subordinated bond purchased in 2025.

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Net Loss from Real Estate

The following table presents the components of net loss from real estate for the years ended December 31, 2025 and 2024, respectively (dollar amounts in thousands):

For the Years Ended December 31,

2025

2024

$ Change

Income from real estate

$

76,334 

$

132,639 

$

(56,305)

Expenses related to real estate:

Interest expense, mortgages payable on real estate

(21,581)

(60,232)

38,651 

Depreciation expense on operating real estate

(23,125)

(37,444)

14,319 

Amortization of lease intangibles related to operating real estate

— 

(2,378)

2,378 

Other real estate expenses

(44,045)

(75,426)

31,381 

Total expenses related to real estate

(88,751)

(175,480)

86,729 

Total net loss from real estate

$

(12,417)

$

(42,841)

$

30,424 

Net loss from real estate decreased in 2025 due to the sale or de-consolidation of a significant portion of our multi-family real estate assets throughout 2024 and 2025.

Other Income (Loss)

Realized Losses, Net

The following table presents the components of realized losses, net recognized for the years ended December 31, 2025 and 2024, respectively (dollar amounts in thousands):

For the Years Ended December 31,

2025

2024

$ Change

Residential loans and real estate owned

$

(30,668)

$

(28,133)

$

(2,535)

Investment securities

(34,760)

(1,218)

(33,542)

Total realized losses, net

$

(65,428)

$

(29,351)

$

(36,077)

In 2025, the Company recognized $65.4 million of net realized losses, primarily related to the sale of U.S. Treasury securities, write-downs of certain investment securities, losses incurred on foreclosed properties and losses on discounted payoffs of non-performing business purpose bridge loans.

Realized losses in 2024 were primarily attributable to losses incurred on foreclosed properties and recognized on the sale of residential loans.

Unrealized Gains (Losses), Net

The following table presents the components of unrealized gains (losses), net recognized for the years ended December 31, 2025 and 2024, respectively (dollar amounts in thousands):

For the Years Ended December 31,

2025

2024

$ Change

Investment securities (including Consolidated SLST)

$

182,320 

$

(85,920)

$

268,240 

Residential loans

64,176 

1,285 

62,891 

Mezzanine lending investments accounted for as loans

581 

(4,717)

5,298 

MSRs

(3,541)

616 

(4,157)

CDOs and senior unsecured notes

(26,141)

(1,794)

(24,347)

Total unrealized gains (losses), net

$

217,395 

$

(90,530)

$

307,925 

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We recognized net unrealized gains in 2025 primarily due to a decrease in interest rates, which impacted the pricing of our investment securities and residential loans.

An increase in interest rates in 2024 resulted in unrealized losses recognized on investment securities and residential loans. In 2024, the net unrealized losses on our investment securities were more than offset by unrealized gains on our derivative instruments, as discussed below. The unrealized losses on residential loans were more than offset by the reversal of unrealized losses as a result of foreclosures, payoffs and sales during the year.

(Losses) Gains on Derivative Instruments, Net

The following table presents the components of (losses) gains on derivative investments, net for the years ended December 31, 2025 and 2024, respectively (dollar amounts in thousands):

For the Years Ended December 31,

2025

2024

$ Change

Unrealized (losses) gains on derivative instruments

$

(82,397)

$

83,899 

$

(166,296)

Realized gains on derivative instruments

24,094 

12,097 

11,997 

Total (losses) gains on derivative instruments, net

$

(58,303)

$

95,996 

$

(154,299)

We recognized net losses on derivative instruments in 2025, primarily due to decreases in interest rates which resulted in lower valuations of our interest rate swaps. These losses were partially offset by unrealized gains recognized on U.S. Treasury and commodity futures, gains realized on contract terminations and net payments received on derivative instruments in 2025.

Net gains on derivative instruments in 2024 were primarily due to increases in interest rates which resulted in higher valuations of our interest rate swaps. We also recognized net realized gains on derivative instruments resulting from net payments received on instruments, partially offset by losses realized on contract terminations in 2024.

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Mortgage Banking Activities, Net

The following table presents the components of mortgage banking activities, net for the years ended December 31, 2025 and 2024, respectively (dollar amounts in thousands):

For the Years Ended December 31,

2025

2024

$ Change

Residential loan origination and other fees

$

12,178 

$

— 

$

12,178 

Gains on residential loans held for sale, net

14,443 

— 

14,443 

Mortgage banking activities, net

$

26,621 

$

— 

$

26,621 

The increase in mortgage banking activities during the period is related to the consolidation of Constructive in 2025.

(Loss) Income from Equity Investments

The following table presents the components of (loss) income from equity investments for the years ended December 31, 2025 and 2024, respectively (dollar amounts in thousands):

For the Years Ended December 31,

2025

2024

$ Change

Preferred return on mezzanine lending investments accounted for as equity

$

5,770 

$

12,775 

$

(7,005)

Unrealized losses, net on mezzanine lending investments accounted for as equity

(6,546)

(4,863)

(1,683)

Loss from unconsolidated joint venture equity investments in multi-family properties

(838)

(4,382)

3,544 

(Loss) income from investment in Constructive

(1,554)

12,481 

(14,035)

Total (loss) income from equity investments

$

(3,168)

$

16,011 

$

(19,179)

The decrease in income from equity investments in 2025 was primarily due to (1) a reduction in our share of income from our equity investment in Constructive, following its consolidation in our financial statements in the third quarter of 2025, (2) a decrease in preferred return on mezzanine lending investments accounted for as equity as a result of redemptions that have occurred since December 31, 2024 and (3) a decline in fair valuation of one mezzanine lending investment accounted for as equity. These decreases were partially offset by lower unrealized losses on unconsolidated joint venture equity investments in multi-family properties as a result of sales in 2025.

Impairment of Real Estate

The following table presents impairment of real estate for the years ended December 31, 2025 and 2024, respectively (dollar amounts in thousands):

For the Years Ended December 31,

2025

2024

$ Change

Impairment of real estate

$

(9,767)

$

(48,875)

$

39,108 

The decrease in impairment of real estate recognized in 2025 can primarily be attributed to a reduced real estate portfolio subject to impairment due to the sale or de-consolidation of a significant portion of our multi-family real estate assets throughout 2024 and 2025. Also, during the years ended December 31, 2025 and 2024, we recognized impairment losses on certain single-family rental properties transferred to held for sale as a result of the remeasurement of those assets to estimated fair value less costs to sell.

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Loss on Reclassification of Disposal Group

The following table presents loss on reclassification of disposal group for the years ended December 31, 2025 and 2024, respectively (dollar amounts in thousands):

For the Years Ended December 31,

2025

2024

$ Change

Loss on reclassification of disposal group

$

— 

$

(14,636)

$

14,636 

One joint venture equity investment was reclassified from disposal group held for sale in 2024. As a result of this transfer, we adjusted the carrying value of the long-lived assets in the Consolidated Real Estate VIE to the lower of the carrying amount before the assets were classified as held for sale adjusted for depreciation and amortization expense that would have been recognized had the assets been continuously classified as held and used and the fair value of the assets at the date of the transfer and recognized an approximately $14.6 million loss on reclassification of disposal group during the year ended December 31, 2024.

During 2025, there were no joint venture equity investments reclassified from disposal group held for sale.

Other Income

The following table presents the components of other income for the years ended December 31, 2025 and 2024, respectively (dollar amounts in thousands):

For the Years Ended December 31,

2025

2024

$ Change

Servicing fee income

$

8,036 

$

906 

$

7,130 

Gain on sale of real estate

8,923 

27,835 

(18,912)

Gain on de-consolidation of joint venture equity investments in Consolidated VIEs

— 

6,115 

(6,115)

Loss on extinguishment of collateralized debt obligations and mortgages payable on real estate

(884)

(2,864)

1,980 

Miscellaneous

434 

(2,843)

3,277 

Total other income

$

16,509 

$

29,149 

$

(12,640)

The decline in other income in 2025 reflects the elevated level of other income in 2024, which was driven by gains recognized on the dispositions of both consolidated multi-family properties and membership interests in consolidated joint venture equity investments. Other income in 2025 benefitted from gains recognized on the sale of consolidated multi-family properties and servicing fee income related to mortgage servicing rights acquired in late 2024. Additionally, year-over-year comparisons were affected by a provision for uncollectible receivables recorded in the prior year period. The provision is related to asset management expenses incurred on a non-accrual Mezzanine Lending investment which exceeded the anticipated redemption proceeds.

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Expenses

The following tables present the components of general and administrative expenses, portfolio operating expenses, loan origination costs and financing transaction costs for the years ended December 31, 2025 and 2024, respectively (dollar amounts in thousands):

For the Years Ended December 31,

2025

2024

$ Change

General and Administrative Expenses

Salaries, benefits and directors’ compensation

$

52,883 

$

34,798 

$

18,085 

Professional fees

6,362 

5,891 

471 

Technology and software

5,478 

2,496 

$

2,982 

Other

7,933 

5,487 

2,446 

Total general and administrative expenses

$

72,656 

$

48,672 

$

23,984 

The increase in general and administrative expenses during the period is primarily related to the consolidation of Constructive in 2025.

For the Years Ended December 31,

2025

2024

$ Change

Portfolio operating expenses

$

28,011 

$

30,688 

$

(2,677)

The decrease in portfolio operating expenses during the period is primarily related to decreased expenses related to the management of the business purpose loan portfolio, partially offset by increases in residential loan servicing fees driven by growth in the size of the loan portfolio since December 31, 2024.

For the Years Ended December 31,

2025

2024

$ Change

Loan origination costs

$

8,101 

$

— 

$

8,101 

The increase in loan origination costs during the period is related to the consolidation of Constructive in 2025.

For the Years Ended December 31,

2025

2024

$ Change

Financing Transaction Costs

Securitization transaction costs

$

6,590 

$

9,855 

$

(3,265)

Senior unsecured notes transaction costs

7,293 

2,480 

4,813 

Equity transaction costs

290 

— 

290 

Total financing transaction costs

$

14,173 

$

12,335 

$

1,838 

Financing transaction costs increased in 2025 as a result of increased debt issuances as compared to 2024.

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Comprehensive Income (Loss)

The main components of comprehensive income (loss) for the years ended December 31, 2025 and 2024, respectively, are detailed in the following table (dollar amounts in thousands):

For the Years Ended December 31,

2025

2024

$ Change

NET INCOME (LOSS) ATTRIBUTABLE TO COMPANY'S COMMON STOCKHOLDERS

$

101,106 

$

(103,785)

$

204,891 

OTHER COMPREHENSIVE INCOME

Reclassification adjustment for net loss included in net loss

— 

4 

(4)

TOTAL OTHER COMPREHENSIVE INCOME

— 

4 

(4)

COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO COMPANY'S COMMON STOCKHOLDERS

$

101,106 

$

(103,781)

$

204,887 

Beginning in the fourth quarter of 2019, the Company’s newly purchased investment securities are presented at fair value as a result of a fair value election made at the time of acquisition. Changes in the market values of investment securities where the Company elected the fair value option are reflected in earnings instead of in OCI. As of December 31, 2025, all of the Company's investment securities are accounted for using the fair value option.

Segment Information

As a result of the acquisition of the outstanding 50% ownership interests in Constructive that were not previously owned by the Company on July 15, 2025, the Company currently operates in two reportable segments: (i) investment portfolio and (ii) Constructive.

The following tables present summarized financial information by reportable segment for the year ended December 31, 2025, which in total reconciles to the same data for the Company on a consolidated basis (dollar amounts in thousands):

For the Year Ended December 31, 2025

Investment Portfolio

Constructive

Corporate/Other

Total

Total net interest income (loss)

$

177,699 

$

334 

$

(28,732)

$

149,301 

Total net loss from real estate

(12,417)

— 

— 

(12,417)

Total other income

93,578 

24,678 

5,603 

123,859 

Total general, administrative and operating expenses

34,367 

33,538 

55,036 

122,941 

Income (loss) from operations before income taxes

224,493 

(8,526)

(78,165)

137,802 

Income tax (benefit) expense

(82)

— 

227 

145 

Net income (loss)

224,575 

(8,526)

(78,392)

137,657 

Net loss attributable to non-controlling interests

11,391 

— 

— 

11,391 

Net income (loss) attributable to Company

235,966 

(8,526)

(78,392)

149,048 

Preferred stock dividends

— 

— 

(47,942)

(47,942)

Net income (loss) attributable to Company's common stockholders

$

235,966 

$

(8,526)

$

(126,334)

$

101,106 

For more information regarding segment reporting, please see Note 25 to our consolidated financial statements included in this Annual Report on Form 10-K.

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Analysis of Changes in GAAP Book Value

The following table analyzes the changes in GAAP book value of our common stock for the year ended December 31, 2025 (amounts in thousands, except per share):

Year Ended December 31, 2025

Amount

Shares

Per Share (1)

Beginning Balance

$

840,610 

90,575 

$

9.28 

Common stock issuance, net (2)

8,197 

(40)

Preferred stock issuance, net

5,027 

Preferred stock issuance liquidation preference

(5,532)

Common stock repurchases

(1,502)

(231)

Balance after share activity

846,800 

90,304 

9.38 

Adjustment of redeemable non-controlling interest to estimated redemption value

(1,548)

(0.02)

Dividends and dividend equivalents declared

(79,078)

(0.88)

Net income attributable to Company's common stockholders

101,106 

1.12 

Ending Balance

$

867,280 

90,304 

$

9.60 

(1)Outstanding shares used to calculate book value per common share for the year ended December 31, 2025 are 90,303,863.

(2)Includes amortization of stock based compensation.

The following table analyzes the changes in GAAP book value of our common stock for the year ended December 31, 2024 (amounts in thousands, except per share):

Year Ended December 31, 2024

Amount

Shares

Per Share (1)

Beginning Balance

$

1,025,502 

90,675 

$

11.31 

Common stock issuance, net (2)

6,068 

487 

Common stock repurchases

(3,493)

(587)

Balance after share activity

1,028,077 

90,575 

11.35 

Adjustment of redeemable non-controlling interest to estimated redemption value

(10,613)

(0.12)

Dividends and dividend equivalents declared

(73,073)

(0.81)

Net change in accumulated other comprehensive loss:

Investment securities available for sale (3)

4 

— 

Net loss attributable to Company's common stockholders

(103,785)

(1.14)

Ending Balance

$

840,610 

90,575 

$

9.28 

(1)Outstanding shares used to calculate book value per common share for the year ended December 31, 2024 are 90,574,996.

(2)Includes amortization of stock based compensation.

(3)The net increase relates to the reclassification of unrealized loss to net loss during the period.

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Non-GAAP Financial Measures

In addition to the results presented in accordance with GAAP, this Annual Report on Form 10-K includes certain non-GAAP financial measures, including adjusted interest income, adjusted interest expense, adjusted net interest income (loss), yield on average interest earning assets, average financing cost, net interest spread, earnings available for distribution and adjusted book value per common share. Our management team believes that these non-GAAP financial measures, when considered with our GAAP financial statements, provide supplemental information useful for investors as it enables them to evaluate our current performance and trends using the metrics that management uses to operate our business. Our presentation of non-GAAP financial measures may not be comparable to similarly-titled measures of other companies, who may use different calculations. Because these measures are not calculated in accordance with GAAP, they should not be considered a substitute for, or superior to, the financial measures calculated in accordance with GAAP. Our GAAP financial results and the reconciliations of the non-GAAP financial measures included in this Annual Report on Form 10-K to the most directly comparable financial measures prepared in accordance with GAAP should be carefully evaluated.

Adjusted Net Interest Income (Loss) and Net Interest Spread

Financial results for the Company during a given period include the net interest income earned on our investments, such as residential loans, residential loans held for sale, investment securities and preferred equity investments and mezzanine loans, where the risks and payment characteristics are equivalent to and accounted for as loans (collectively, our “interest earning assets”). Adjusted net interest income (loss) and net interest spread (both supplemental non-GAAP financial measures) are impacted by factors such as our cost of financing, including our hedging costs, and the interest rate that our investments bear. Furthermore, the amount of premium or discount paid on purchased investments and the prepayment rates on investments will impact adjusted net interest income (loss) as such factors will be amortized over the expected term of such investments.

We provide the following non-GAAP financial measures, in total and by investment category, for the respective periods:

•adjusted interest income – calculated as our GAAP interest income reduced by the interest expense recognized on Consolidated SLST CDOs and adjusted to include TBA dollar roll income,

•adjusted interest expense – calculated as our GAAP interest expense reduced by the interest expense recognized on Consolidated SLST CDOs and adjusted to include the net interest component of interest rate swaps,

•adjusted net interest income (loss) – calculated by subtracting adjusted interest expense from adjusted interest income,

•yield on average interest earning assets – calculated as the quotient of our adjusted interest income and our average interest earning assets and excludes all Consolidated SLST assets other than those securities owned by the Company,

•average financing cost – calculated as the quotient of our adjusted interest expense and the average outstanding balance of our interest bearing liabilities, excluding Consolidated SLST CDOs and mortgages payable on real estate, and

•net interest spread – calculated as the difference between our yield on average interest earning assets and our average financing cost.

These measures remove the impact of Consolidated SLST that we consolidate in accordance with GAAP and include both the net interest component of interest rate swaps utilized to hedge the variable cash flows associated with our variable-rate borrowings and dollar roll income associated with TBAs, which are included in (losses) gains on derivative instruments, net in the Company's consolidated statements of operations. With respect to Consolidated SLST, we only include the interest income earned by the Consolidated SLST securities that are actually owned by the Company as the Company only receives income or absorbs losses related to the Consolidated SLST securities actually owned by the Company. We include the net interest component of interest rate swaps in these measures to more fully represent the cost of our financing strategy. We include TBA dollar roll income as it represents the economic equivalent of net interest income on the underlying Agency RMBS over the TBA dollar roll period (interest income less implied financing cost).

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We provide the non-GAAP financial measures listed above because we believe these non-GAAP financial measures provide investors and management with additional detail and enhance their understanding of our interest earning asset yields, in total and by investment category, relative to the cost of our financing and the underlying trends within our portfolio of interest earning assets. In addition to the foregoing, our management team uses these measures to assess, among other things, the performance of our interest earning assets in total and by asset, possible cash flows from our interest earning assets in total and by asset, our ability to finance or borrow against the asset and the terms of such financing and the composition of our portfolio of interest earning assets, including acquisition and disposition determinations.

The following tables set forth certain information about our interest earning assets by category and their related adjusted interest income, adjusted interest expense, adjusted net interest income (loss), yield on average interest earning assets, average financing cost and net interest spread for the years ended December 31, 2025, 2024 and 2023, respectively (dollar amounts in thousands):

Year Ended December 31, 2025

Agency

Single-Family Credit (8)

Multi-

Family Credit

Corporate/Other

Total

Adjusted Interest Income (1) (2)

$

306,213 

$

239,429 

$

8,642 

$

10,202 

$

564,486 

Adjusted Interest Expense (1)

(197,732)

(164,137)

— 

(37,199)

(399,068)

Adjusted Net Interest Income (Loss) (1)

$

108,481 

$

75,292 

$

8,642 

$

(26,997)

$

165,418 

Average Interest Earning Assets (3)

$

5,239,194 

$

3,324,826 

$

72,799 

$

233,340 

$

8,870,159 

Average Interest Bearing Liabilities (4)

$

4,714,395 

$

2,866,080 

$

— 

$

565,344 

$

8,145,819 

Yield on Average Interest Earning Assets (1) (5)

5.84 

%

7.20 

%

11.87 

%

4.37 

%

6.36 

%

Average Financing Cost (1) (6)

(4.19)

%

(5.73)

%

— 

(6.58)

%

(4.90)

%

Net Interest Spread (1) (7)

1.65 

%

1.47 

%

11.87 

%

(2.21)

%

1.46 

%

Year Ended December 31, 2024

Agency

Single-Family Credit (8)

Multi-

Family Credit

Corporate/Other

Total

Adjusted Interest Income (1) (2)

$

156,706 

$

200,786 

$

10,755 

$

6,542 

$

374,789 

Adjusted Interest Expense (1)

(97,822)

(144,907)

— 

(17,290)

(260,019)

Adjusted Net Interest Income (Loss) (1)

$

58,884 

$

55,879 

$

10,755 

$

(10,748)

$

114,770 

Average Interest Earning Assets (3)

$

2,567,102 

$

2,917,627 

$

92,421 

$

154,196 

$

5,731,346 

Average Interest Bearing Liabilities (4)

$

2,291,029 

$

2,376,033 

$

— 

$

328,188 

$

4,995,250 

Yield on Average Interest Earning Assets (1) (5)

6.10 

%

6.88 

%

11.64 

%

4.24 

%

6.54 

%

Average Financing Cost (1) (6)

(4.27)

%

(6.10)

%

— 

(5.27)

%

(5.21)

%

Net Interest Spread (1) (7)

1.83 

%

0.78 

%

11.64 

%

(1.03)

%

1.33 

%

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Year Ended December 31, 2023

Agency

Single-Family Credit (8)

Multi-

Family Credit

Corporate/Other

Total

Adjusted Interest Income (1) (2)

$

51,271 

$

169,114 

$

13,707 

$

62 

$

234,154 

Adjusted Interest Expense (1)

(31,369)

(115,986)

— 

(8,186)

(155,541)

Adjusted Net Interest Income (Loss) (1)

$

19,902 

$

53,128 

$

13,707 

$

(8,124)

$

78,613 

Average Interest Earning Assets (3)

$

828,884 

$

2,864,511 

$

120,687 

$

— 

$

3,814,082 

Average Interest Bearing Liabilities (4)

$

727,901 

$

2,009,389 

$

— 

$

145,000 

$

2,882,290 

Yield on Average Interest Earning Assets (1) (5)

6.19 

%

5.90 

%

11.36 

%

— 

6.14 

%

Average Financing Cost (1) (6)

(4.31)

%

(5.77)

%

— 

(5.65)

%

(5.40)

%

Net Interest Spread (1) (7)

1.88 

%

0.13 

%

11.36 

%

(5.65)

%

0.74 

%

(1)Represents a non-GAAP financial measure.

(2)Includes interest income earned on cash accounts held by the Company.

(3)Average Interest Earning Assets for the respective periods include residential loans, residential loans held for sale, multi-family loans, investment securities and cost basis of outstanding TBAs, to the extent applicable, and exclude all Consolidated SLST assets other than those securities owned by the Company. Average Interest Earning Assets is calculated based on the daily average amortized cost for the respective periods.

(4)Average Interest Bearing Liabilities for the respective periods include repurchase agreements and warehouse facilities, residential loan securitization and non-Agency RMBS re-securitization CDOs, senior unsecured notes and subordinated debentures, to the extent applicable, and exclude Consolidated SLST CDOs and mortgages payable on real estate as the Company does not directly incur interest expense on these liabilities that are consolidated for GAAP purposes. Average Interest Bearing Liabilities is calculated based on the daily average outstanding balance for the respective periods.

(5)Yield on Average Interest Earning Assets is calculated by dividing our adjusted interest income relating to our portfolio of interest earning assets by our Average Interest Earning Assets for the respective periods.

(6)Average Financing Cost is calculated by dividing our adjusted interest expense by our Average Interest Bearing Liabilities.

(7)Net Interest Spread is the difference between our Yield on Average Interest Earning Assets and our Average Financing Cost.

(8)The Company has determined it is the primary beneficiary of Consolidated SLST and has consolidated Consolidated SLST into the Company's consolidated financial statements. Our GAAP interest income includes interest income recognized on the underlying seasoned re-performing and non-performing residential loans held in Consolidated SLST. Our GAAP interest expense includes interest expense recognized on the Consolidated SLST CDOs that permanently finance the residential loans in Consolidated SLST and are not owned by the Company. We calculate adjusted interest income by reducing our GAAP interest income by the interest expense recognized on the Consolidated SLST CDOs and adjusted interest expense by excluding, among other things, the interest expense recognized on the Consolidated SLST CDOs, thus only including the interest income earned by the SLST securities that are actually owned by the Company in adjusted net interest income (loss).

Our adjusted interest income increased by approximately $189.7 million in 2025, primarily driven by growth in our interest earning assets that reflects increased investment in Agency RMBS and residential loans. Yield on average interest earning assets declined in 2025, reflecting our emphasis on lower-yielding Agency RMBS.

Adjusted interest expense increased by approximately $139.0 million in 2025 as a result of increased financing obtained to fund investing activity through repurchase agreements, warehouse facilities and securitizations as well as issuance of senior unsecured notes. Average financing cost decreased in 2025 primarily due to improved financing terms and base interest rate movements.

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Our adjusted net interest income increased in 2024 as compared to the prior year. Adjusted interest income increased by approximately $140.6 million primarily due to (1) an increase in interest earning assets driven by increased investment in Agency RMBS and (2) an increase in yield on residential loans due to continued investment in business purpose loans. Adjusted interest expense increased by approximately $104.5 million as a result of increased financing obtained through repurchase agreements and securitizations as well as the issuance of the 9.125% Senior Notes due 2029 to fund investment activity.

Net interest spread continued to increase in 2025, reflecting efficient utilization of securitization financing and lower base rates. Net interest spread increased during 2024, primarily due to an increase in yield on Average Interest Earning Assets resulting from our continued investment in higher yielding business purpose loans. The increase in net spread was also the result of a decrease in the cost of financing due to the benefit of our in-the-money interest rate swaps.

A reconciliation of GAAP interest income to adjusted interest income, GAAP interest expense to adjusted interest expense and GAAP total net interest income (loss) to adjusted net interest income (loss) for the years ended December 31, 2025, 2024 and 2023, respectively, is presented below (dollar amounts in thousands):

For the Year Ended December 31, 2025

Agency

Single-Family Credit

Multi-Family Credit

Corporate/Other

Total

GAAP interest income

$

306,128 

$

276,976 

$

8,642 

$

10,202 

$

601,948 

GAAP interest expense

(211,169)

(202,735)

— 

(38,743)

(452,647)

GAAP total net interest income (loss)

$

94,959 

$

74,241 

$

8,642 

$

(28,541)

$

149,301 

GAAP interest income

$

306,128 

$

276,976 

$

8,642 

$

10,202 

$

601,948 

Adjusted for:

Consolidated SLST CDO interest expense

— 

(37,547)

— 

— 

(37,547)

TBA dollar roll income

85 

— 

— 

— 

85 

Adjusted interest income

$

306,213 

$

239,429 

$

8,642 

$

10,202 

$

564,486 

GAAP interest expense

$

(211,169)

$

(202,735)

$

— 

$

(38,743)

$

(452,647)

Adjusted for:

Consolidated SLST CDO interest expense

— 

37,547 

— 

— 

37,547 

Net interest benefit of interest rate swaps

13,437 

1,051 

— 

1,544 

16,032 

Adjusted interest expense

$

(197,732)

$

(164,137)

$

— 

$

(37,199)

$

(399,068)

Adjusted net interest income (loss) (1)

$

108,481 

$

75,292 

$

8,642 

$

(26,997)

$

165,418 

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For the Year Ended December 31, 2024

Agency

Single-Family Credit

Multi-Family Credit

Corporate/Other

Total

GAAP interest income

$

156,706 

$

227,277 

$

10,755 

$

6,542 

$

401,280 

GAAP interest expense

(124,415)

(172,102)

— 

(20,908)

(317,425)

GAAP total net interest income (loss)

$

32,291 

$

55,175 

$

10,755 

$

(14,366)

$

83,855 

GAAP interest income

$

156,706 

$

227,277 

$

10,755 

$

6,542 

$

401,280 

Adjusted for:

Consolidated SLST CDO interest expense

— 

(26,491)

— 

— 

(26,491)

Adjusted interest income

$

156,706 

$

200,786 

$

10,755 

$

6,542 

$

374,789 

GAAP interest expense

$

(124,415)

$

(172,102)

$

— 

$

(20,908)

$

(317,425)

Adjusted for:

Consolidated SLST CDO interest expense

— 

26,491 

— 

— 

26,491 

Net interest benefit of interest rate swaps

26,593 

704 

— 

3,618 

30,915 

Adjusted interest expense

$

(97,822)

$

(144,907)

$

— 

$

(17,290)

$

(260,019)

Adjusted net interest income (loss) (1)

$

58,884 

$

55,879 

$

10,755 

$

(10,748)

$

114,770 

For the Year Ended December 31, 2023

Agency

Single-Family Credit

Multi-Family Credit

Corporate/Other

Total

GAAP interest income

$

51,271 

$

193,620 

$

13,707 

$

62 

$

258,660 

GAAP interest expense

(41,011)

(140,492)

— 

(10,631)

(192,134)

GAAP total net interest income (loss)

$

10,260 

$

53,128 

$

13,707 

$

(10,569)

$

66,526 

GAAP interest income

$

51,271 

$

193,620 

$

13,707 

$

62 

$

258,660 

Adjusted for:

Consolidated SLST CDO interest expense

— 

(24,506)

— 

— 

(24,506)

Adjusted interest income

$

51,271 

$

169,114 

$

13,707 

$

62 

$

234,154 

GAAP interest expense

$

(41,011)

$

(140,492)

$

— 

$

(10,631)

$

(192,134)

Adjusted for:

Consolidated SLST CDO interest expense

— 

24,506 

— 

— 

24,506 

Net interest benefit of interest rate swaps

9,642 

— 

— 

2,445 

12,087 

Adjusted interest expense

$

(31,369)

$

(115,986)

$

— 

$

(8,186)

$

(155,541)

Adjusted net interest income (loss) (1)

$

19,902 

$

53,128 

$

13,707 

$

(8,124)

$

78,613 

(1)Adjusted net interest income (loss) is calculated by subtracting adjusted interest expense from adjusted interest income.

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Earnings Available for Distribution

Beginning with the quarter ended March 31, 2025, we present earnings available for distribution attributable to Company's common stockholders ("EAD") (and by calculation, EAD per common share) as a supplemental non-GAAP financial measure comparable to GAAP net income (loss) attributable to Company's common stockholders.

EAD is defined as GAAP net income (loss) attributable to Company's common stockholders excluding (a) realized and unrealized gains (losses) on our investment portfolio, (b) gains (losses) on derivative instruments (excluding the net interest benefit of interest rate swaps and TBA dollar roll income), (c) impairment of real estate, (d) loss on reclassification of disposal group, (e) other non-recurring gains (losses), (f) depreciation and amortization of operating real estate, (g) non-cash expenses, (h) financing transaction costs, (i) non-recurring restructuring and transaction expenses, (j) the income tax effect of non-EAD income (loss) items and (k) EAD adjustments attributable to non-controlling interests.

When presented in prior periods, undepreciated earnings (loss) was calculated as GAAP net income (loss) attributable to Company's common stockholders excluding the Company's share in depreciation expense and lease intangible amortization expense, if any, related to operating real estate, net for which an impairment has not been recognized. Over the past few years, we have executed a strategic repositioning of our business through the disposition of certain joint venture equity investments in multi-family properties and acquisition of assets that expand our interest income levels, such as Agency RMBS and business purpose loans. As a result, we believe EAD provides a clearer indication of the current income generating capacity of the Company's business operations than undepreciated earnings (loss) and we present EAD and EAD per common share as supplemental non-GAAP financial measures.

We believe EAD provides management, analysts and investors with additional details regarding our underlying operating results and investment trends by excluding certain unrealized, non-cash or non-recurring components of GAAP net income (loss) in order to provide additional transparency into our operating performance. In addition, EAD serves as a useful indicator for investors in evaluating our performance and facilitates comparisons to industry peers and period to period. EAD should not be utilized in isolation, nor should it be considered as a substitute for or superior to GAAP net income (loss) attributable to Company's common stockholders or GAAP net income (loss) attributable to Company's common stockholders per basic share. Our presentation of EAD may not be comparable to similarly-titled measures of other companies, who may use different calculations. We may add additional reconciling items to our EAD calculation as appropriate.

We view EAD as one measure of our ability to generate income for distribution to common stockholders. EAD is one factor, but not the exclusive factor, that our Board of Directors uses to determine the amount, if any, of dividends on our common stock. Other factors that our Board of Directors may consider when determining the amount, if any, of dividends on our common stock include, among others, our earnings and financial condition, capital requirements, maintenance of our REIT qualification, restrictions on making distributions under Maryland law and such other factors as our Board of Directors deems relevant. EAD should not be considered as an indication of our REIT taxable income, a guaranty of our ability to pay dividends, or as a proxy for the amount of dividends we may pay, as EAD excludes certain items that impact our liquidity.

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A reconciliation of GAAP net income (loss) attributable to Company's common stockholders to EAD for the years ended December 31, 2025, 2024, and 2023 respectively, is presented below (amounts in thousands, except per share data):

For the Years Ended December 31,

2025

2024

2023

GAAP net income (loss) attributable to Company's common stockholders

$

101,106 

$

(103,785)

$

(90,035)

Adjustments:

Realized losses, net

65,428 

29,351 

27,059 

Unrealized (gains) losses, net

(217,395)

90,530 

(97,196)

Losses (gains) on derivative instruments, net (1)

74,420 

(65,081)

38,465 

Unrealized losses, net on equity investments (2)

11,815 

6,115 

7,336 

Impairment of real estate

9,767 

48,875 

89,548 

Loss on reclassification of disposal group

— 

14,636 

16,163 

Other gains (3)

(9,643)

(31,377)

(15,317)

Depreciation and amortization of operating real estate

23,125 

39,822 

24,620 

Non-cash expenses (4)

10,816 

9,696 

11,725 

Financing transaction costs

14,173 

12,335 

— 

Restructuring and transaction expenses (5)

2,768 

465 

— 

Gain on repurchase of preferred stock

— 

— 

(467)

Income tax effect of adjustments

(99)

915 

(229)

EAD adjustments attributable to non-controlling interests

(5,657)

(18,881)

(18,865)

Earnings available for distribution attributable to Company's common stockholders

$

80,624 

$

33,616 

$

(7,193)

Weighted average shares outstanding - basic

90,427 

90,815 

91,042 

GAAP net income (loss) attributable to Company's common stockholders per common share - basic

$

1.12 

$

(1.14)

$

(0.99)

EAD per common share - basic

$

0.89 

$

0.37 

$

(0.08)

(1)Excludes net interest benefit of interest rate swaps of approximately $16.0 million, $30.9 million and $12.1 million for the years ended December 31, 2025, 2024 and 2023, respectively. Also excludes TBA dollar roll income of approximately $84.8 thousand for the year ended December 31, 2025.

(2)Included in income from equity investments on the Company's consolidated statements of operations.

(3)Primarily includes non-recurring items such as gains (losses) on sales of real estate, gains (losses) on de-consolidation, gains (losses) on extinguishment of debt, preferred equity premiums resulting from early redemption, property loss insurance proceeds and provision for uncollectible receivables.

(4)Includes stock based compensation and intangible asset amortization.

(5)Includes non-recurring expenses such as restructuring expenses and transaction expenses related to our acquisition of Constructive, professional fees incurred related to our name change and other non-recurring transaction expenses.

Adjusted Book Value Per Common Share

Adjusted book value per common share is a supplemental non-GAAP financial measure calculated by making the following adjustments to GAAP book value: (i) exclude the Company's share of cumulative depreciation and lease intangible amortization expenses related to real estate held at the end of the period for which an impairment has not been recognized, (ii) exclude the cumulative adjustment of redeemable non-controlling interests to estimated redemption value and (iii) adjust our amortized cost liabilities that finance our investments to fair value.

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Our rental property portfolio includes, or has included, fee simple interests in single-family rental homes and joint venture equity interests and a cross-collateralized mezzanine lending investment in multi-family properties owned by Consolidated Real Estate VIEs. By excluding our share of cumulative non-cash depreciation and amortization expenses related to real estate held at the end of the period for which an impairment has not been recognized, adjusted book value reflects the value, at their undepreciated basis, of our single-family rental properties, joint venture equity investments and cross-collateralized mezzanine lending investment that the Company has determined to be recoverable at the end of the period.

Additionally, in connection with third party ownership of certain of the non-controlling interests in our cross-collateralized mezzanine lending investment, we record redeemable non-controlling interests as mezzanine equity on our consolidated balance sheets. The holders of the redeemable non-controlling interests may elect to sell their ownership interests to us at fair value once a year, subject to annual minimum and maximum amount limitations, resulting in an adjustment of the redeemable non-controlling interests to fair value that is accounted for by us as an equity transaction in accordance with GAAP. A key component of the estimation of fair value of the redeemable non-controlling interests is the estimated fair value of the multi-family apartment properties held by our cross-collateralized mezzanine lending investment. However, because the corresponding real estate assets are not reported at fair value and thus not adjusted to reflect unrealized gains or losses in our consolidated financial statements, the cumulative adjustment of the redeemable non-controlling interests to fair value directly affects our GAAP book value. By excluding the cumulative adjustment of redeemable non-controlling interests to estimated redemption value, adjusted book value more closely aligns the accounting treatment applied to these real estate assets and reflects our cross-collateralized mezzanine lending investment at its undepreciated basis.

The substantial majority of our remaining assets are financial or similar instruments that are carried at fair value in accordance with the fair value option in our consolidated financial statements. However, unlike our use of the fair value option for these assets, certain CDOs issued by our residential loan securitizations, certain senior unsecured notes and subordinated debentures that finance our investments are carried at amortized cost in our consolidated financial statements. By adjusting these financing instruments to fair value, adjusted book value reflects the Company's net equity in investments on a comparable fair value basis.

We believe that the presentation of adjusted book value per common share provides a useful measure for investors and us as it provides a consistent measure of our value, allows management to effectively consider our financial position and facilitates the comparison of our financial performance to that of our peers.

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A reconciliation of GAAP book value to adjusted book value and calculation of adjusted book value per common share as of December 31, 2025 and 2024, respectively, is presented below (amounts in thousands, except per share data).

December 31, 2025

December 31, 2024

Company's stockholders' equity

$

1,426,922 

$

1,394,720 

Preferred stock liquidation preference

(559,642)

(554,110)

GAAP book value

867,280 

840,610 

Add:

Cumulative depreciation expense on real estate (1)

26,864 

20,837 

Cumulative amortization of lease intangibles related to real estate (1)

4,106 

4,620 

Cumulative adjustment of redeemable non-controlling interest to estimated redemption value

42,222 

40,675 

Adjustment of amortized cost liabilities to fair value

19,202 

30,619 

Adjusted book value

$

959,674 

$

937,361 

Common shares outstanding

90,304 

90,575 

GAAP book value per common share (2)

$

9.60 

$

9.28 

Adjusted book value per common share (3)

$

10.63 

$

10.35 

(1)Represents cumulative adjustments for the Company's share of depreciation expense and amortization of lease intangibles related to real estate held as of the end of the period presented for which an impairment has not been recognized.

(2)GAAP book value per common share is calculated using the GAAP book value and the common shares outstanding for the periods indicated.

(3)Adjusted book value per common share is calculated using the adjusted book value and the common shares outstanding for the periods indicated.

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Critical Accounting Estimates

We prepare our consolidated financial statements in conformity with GAAP, which requires the use of estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are based, in part, on our judgment and assumptions regarding various economic conditions that we believe are reasonable based on facts and circumstances existing at the time of reporting. We believe that the estimates, judgments and assumptions utilized in the preparation of our consolidated financial statements are prudent and reasonable. Although our estimates contemplate conditions as of December 31, 2025 and how we expect them to change in the future, it is reasonably possible that actual conditions could be different than anticipated in those estimates, which could materially affect reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of income, expenses and other comprehensive income (loss) during the periods presented.

Changes in the estimates and assumptions could have a material effect on these consolidated financial statements. Accounting policies and estimates related to specific components of our consolidated financial statements are disclosed in the notes to our consolidated financial statements. In accordance with SEC guidance, the estimates that we believe are most critical to an investor’s understanding of our financial results and condition and which require complex management judgment are discussed below.

Valuation of Financial Instruments

Residential Loans

The Company’s acquired residential loans are recorded at fair value, which is determined using valuations obtained from a third party that specializes in providing valuations of residential loans. For performing and re-performing loans, estimates of fair value are derived using a discounted cash flow model, where estimates of cash flows are determined from scheduled payments for each loan, adjusted using forecast prepayment rates, default rates and rates for loss upon default. For non-performing loans, asset liquidation cash flows are derived based on the estimated time to liquidate the loan, expected liquidation costs and home price appreciation. Estimated cash flows for both performing and non-performing loans are discounted at yields considered appropriate to arrive at a reasonable exit price for the asset. Indications of loan value such as actual trades, bids, offers and generic market color may be used in determining the appropriate discount yield.

The estimation of cash flows used in pricing models is inherently subjective and imprecise. Changes to cash flow model assumptions, including prepayment speeds, default rates, rates for loss upon default, liquidation costs, home price appreciation and discount rates may significantly impact the fair value estimate of residential loans, as well as unrealized gains and losses recognized on these assets.

Investment Securities Issued by Consolidated SLST

The Company invests in first loss subordinated securities and certain IOs issued by Consolidated SLST. The investment securities that we own in Consolidated SLST are generally illiquid and trade infrequently. The fair valuation of these investment securities is determined based on an internal valuation model that considers expected cash flows from the underlying loans and yields required by market participants. The significant assumptions used in the measurement of these investments are projected losses within the pool of loans and a discount rate. The discount rate used in determining fair value incorporates default rate, loss severity, prepayment rate and current market interest rates.

The estimation of cash flows used in pricing models is inherently subjective and imprecise. Significant changes in model assumptions, including projected losses, discount rate, prepayment speeds, default rate and loss severity may significantly impact the fair value estimate of investment securities that we own in Consolidated SLST, as well as unrealized gains and losses recognized on these assets.

The Company’s valuation methodologies are described in “Note 17 – Fair Value of Financial Instruments” included in Item 8 of this Annual Report on Form 10-K.

Refer to Item 7A., "Quantitative and Qualitative Disclosures about Market Risk—Fair Value Risk" for a quantitative interest rate sensitivity analysis of our investment portfolio.

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Revenue Recognition - Investment Securities Issued by Consolidated SLST

Interest income on first loss subordinated securities and certain IOs issued by Consolidated SLST is recognized based on the securities' effective yield. The effective yield on these securities is based on management’s estimate of the projected cash flows from each security, which incorporates assumptions related to fluctuations in interest rates, prepayment speeds and the timing and amount of credit losses. On at least a quarterly basis, management reviews and, if appropriate, adjusts its cash flow projections based on input and analysis received from external sources, internal models, and its judgment about interest rates, prepayment rates, the timing and amount of credit losses, and other factors. Changes in cash flows from those originally projected, or from those estimated at the last evaluation, may result in a prospective change in the yield (or interest income) recognized on these securities.

The estimation of cash flows used in determining effective yield is inherently subjective and imprecise. Changes in the underlying cash flow assumptions, including prepayment speeds and timing and amount of credit losses, may significantly impact the calculation of effective yield and the interest income recognized for these securities.

Variable Interest Entities and Consolidation Reporting Requirements

A VIE is an entity that lacks one or more of the characteristics of a voting interest entity. A VIE is defined as an entity in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The Company consolidates a VIE when it is the primary beneficiary of such VIE.

Determining whether an entity has a controlling financial interest in a VIE requires significant judgment related to assessing the purpose and design of the VIE and determination of the activities that most significantly impact its economic performance. We must also identify explicit and implicit variable interests in the entity and consider our involvement in both the design of the VIE and its ongoing activities. To determine whether consolidation of the VIE is required, we must apply judgment to assess whether we have the power to direct the most significant activities of the VIE and whether we have either the rights to receive benefits or the obligation to absorb losses that could be potentially significant to the VIE. The Company is required to reconsider its evaluation of whether to consolidate a VIE each reporting period, based upon changes in the facts and circumstances pertaining to the VIE.

As of December 31, 2025 and 2024, we owned 100% of the first loss subordinated securities of Consolidated SLST. Consolidated SLST represents Freddie Mac-sponsored residential mortgage loan securitizations of which we own the first loss subordinated securities and certain IOs. We determined that the Freddie Mac-sponsored residential loan securitization trusts, which we collectively refer to as Consolidated SLST, are VIEs and that we are the primary beneficiary of Consolidated SLST. As a result, we are required to consolidate Consolidated SLST’s underlying residential loans including their liabilities, income and expenses in our consolidated financial statements.

The Company also invests in, or has invested in, a cross-collateralized mezzanine lending and joint venture equity investments that own multi-family apartment communities, which the Company determined to be VIEs and for which the Company is, or was, the primary beneficiary. Accordingly, the Company consolidated the assets, liabilities, income and expenses of these VIEs in the accompanying consolidated financial statements with non-controlling interests for the third-party ownership of the entities' membership interests. The Company accounted for the initial consolidation of these Consolidated VIEs as asset acquisitions, as substantially all of the fair value of the assets within the entities are concentrated in either a single identifiable asset or group of similar identifiable assets.

Real estate held for sale (including real estate in disposal group held for sale) is, or was, recorded at the lower of the net carrying amount of the assets or the estimated net fair value. The Company assesses the net fair value of real estate held for sale in each reporting period that the assets remain classified as held for sale. The Company utilizes market assumptions and a discounted cash flow analysis using property financial information and assumptions regarding market rent, revenue and expense growth, capitalization rates and return rates to estimate fair value of real estate assets.

The third-party owners of certain of the non-controlling interests in our cross-collateralized mezzanine lending investment have the ability to sell their ownership interests to the Company, at their election. The Company has classified these third-party ownership interests as redeemable non-controlling interest and determines the fair value of the redeemable non-controlling interest utilizing market assumptions and discounted cash flows. The Company applies a discount rate to the estimated future cash flows from the multi-family apartment properties held by the cross-collateralized mezzanine lending investment that are allocatable to the redeemable non-controlling interest.

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The estimation of cash flows used in pricing models for real estate held for sale and redeemable non-controlling interest is inherently subjective and imprecise. The estimation of fair value requires significant judgment based on the available sources and may affect any impairment recognized on real estate in the Company's statements of operations or, with respect to redeemable non-controlling interest, the Company's book value.

A discussion of significant accounting policies is included in “Note 2 — Summary of Significant Accounting Policies” included in Item 8 of this Annual Report on Form 10-K.

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Balance Sheet Analysis

As of December 31, 2025, we had approximately $12.6 billion of total assets. Included in this amount is approximately $1.2 billion of assets held in Consolidated SLST and $456.4 million of assets related to Consolidated Real Estate VIEs, both of which we consolidate in accordance with GAAP. As of December 31, 2024, we had approximately $9.2 billion of total assets. Included in this amount is approximately $969.7 million of assets held in Consolidated SLST and $620.6 million of assets related to Consolidated Real Estate VIEs, both of which we consolidate in accordance with GAAP. For a reconciliation of our actual interests in Consolidated SLST, see “Investing Activity” above. For a reconciliation of our investments in Consolidated Real Estate VIEs, see “Equity Investments in Multi-Family Entities” below.

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Investment Securities

At December 31, 2025, our investment securities portfolio included Agency RMBS, non-Agency RMBS and U.S. Treasury securities, which are classified as investment securities available for sale. Our investment securities also include first loss subordinated securities and certain IOs issued by Consolidated SLST. At December 31, 2025, we had no investment securities in a single issuer or entity that had an aggregate book value in excess of 5% of our total assets. The increase in the carrying value of our investment securities as of December 31, 2025 as compared to December 31, 2024 is primarily due to purchases of Agency RMBS and an increase in the fair value of a number of our investment securities, partially offset by sales of U.S. Treasury securities and principal paydowns of Agency RMBS during the period.

The following tables summarize our investment securities portfolio as of December 31, 2025 and 2024, respectively (dollar amounts in thousands):

December 31, 2025

Unrealized

Weighted Average

Investment Securities

Current Par Value

Amortized Cost

Gains

Losses

Fair Value

Coupon (1)

Yield (2)

Available for Sale (“AFS”)

Agency RMBS

Fixed rate

$

6,330,554 

$

6,300,852 

$

124,348 

$

(700)

$

6,424,500 

5.57 

%

5.63 

%

Adjustable rate

116,025 

114,427 

3,662 

— 

118,089 

5.43 

%

5.53 

%

IO

1,425,469 

105,495 

61 

(14,669)

90,887 

1.67 

%

12.07 

%

Total Agency RMBS

7,872,048 

6,520,774 

128,071 

(15,369)

6,633,476 

4.77 

%

5.75 

%

Non-Agency RMBS

Senior

2,500 

2,500 

56 

— 

2,556 

8.72 

%

8.72 

%

Subordinated

8,509 

7,925 

10 

(2,312)

5,623 

4.79 

%

5.59 

%

IO

308,989 

11,778 

5,635 

— 

17,413 

1.52 

%

28.86 

%

Total Non-Agency RMBS

319,998 

22,203 

5,701 

(2,312)

25,592 

1.65 

%

19.03 

%

U.S. Treasury securities

245,309 

246,298 

1,652 

(2,237)

245,713 

4.63 

%

4.62 

%

Total - AFS

$

8,437,355 

$

6,789,275 

$

135,424 

$

(19,918)

$

6,904,781 

4.61 

%

5.78 

%

Consolidated SLST

Non-Agency RMBS

Subordinated

$

248,588 

$

179,415 

$

2,429 

$

(41,549)

$

140,295 

4.80 

%

6.67 

%

IO

120,487 

11,488 

— 

(262)

11,226 

3.50 

%

9.19 

%

Total Non-Agency RMBS

369,075 

190,903 

2,429 

(41,811)

151,521 

4.36 

%

6.84 

%

Total - Consolidated SLST

$

369,075 

$

190,903 

$

2,429 

$

(41,811)

$

151,521 

4.36 

%

6.84 

%

Total Investment Securities

$

8,806,430 

$

6,980,178 

$

137,853 

$

(61,729)

$

7,056,302 

4.60 

%

5.82 

%

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December 31, 2024

Unrealized

Weighted Average

Investment Securities

Current Par Value

Amortized Cost

Gains

Losses

Fair Value

Coupon (1)

Yield (2)

Available for Sale (“AFS”)

Agency RMBS

Fixed rate

$

2,943,583 

$

2,949,038 

$

11,733 

$

(21,711)

$

2,939,060 

5.84 

%

5.73 

%

Adjustable rate

131,817 

130,119 

285 

(822)

129,582 

5.47 

%

5.40 

%

IO

1,169,330 

83,878 

843 

(16,551)

68,170 

0.89 

%

11.82 

%

Total Agency RMBS

4,244,730 

3,163,035 

12,861 

(39,084)

3,136,812 

4.24 

%

5.88 

%

Non-Agency RMBS

Senior

42,214 

42,214 

160 

(9)

42,365 

8.14 

%

8.10 

%

Subordinated

11,509 

10,869 

— 

(2,605)

8,264 

5.19 

%

5.95 

%

IO

346,582 

13,120 

5,938 

— 

19,058 

1.52 

%

28.86 

%

Total Non-Agency RMBS

400,305 

66,203 

6,098 

(2,614)

69,687 

2.01 

%

14.02 

%

U.S. Treasury securities

652,792 

657,659 

— 

(35,614)

622,045 

4.16 

%

4.13 

%

Total - AFS

$

5,297,827 

$

3,886,897 

$

18,959 

$

(77,312)

$

3,828,544 

4.04 

%

5.98 

%

Consolidated SLST

Non-Agency RMBS

Subordinated

$

242,088 

$

181,716 

$

4,945 

$

(52,134)

$

134,527 

4.60 

%

6.02 

%

IO

129,478 

14,634 

— 

(653)

13,981 

3.50 

%

8.54 

%

Total Non-Agency RMBS

371,566 

196,350 

4,945 

(52,787)

148,508 

4.21 

%

6.23 

%

Total - Consolidated SLST

$

371,566 

$

196,350 

$

4,945 

$

(52,787)

$

148,508 

4.21 

%

6.23 

%

Total Investment Securities

$

5,669,393 

$

4,083,247 

$

23,904 

$

(130,099)

$

3,977,052 

4.05 

%

5.94 

%

(1)Our weighted average coupon was calculated by dividing our coupon income by our weighted average current par value for the respective periods.

(2)Our weighted average yield was calculated by dividing our interest income by our weighted average amortized cost for the respective periods.

The following tables summarize certain characteristics of our Agency RMBS portfolio as of December 31, 2025 and 2024 (dollar amounts in thousands):

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December 31, 2025

Weighted Average

Current Par Value

Fair Value

CPR (1)

Loan Age (Months)

Agency RMBS

30-Year Fixed rate

4.5%

$

49,917 

$

48,850 

3.9 

%

30 

5.0%

1,747,765 

1,746,572 

5.6 

%

13 

5.5%

3,286,803 

3,342,270 

14.5 

%

19 

6.0%

993,027 

1,022,374 

26.2 

%

27 

6.5%

253,042 

264,434 

28.6 

%

33 

Total 30-Year Fixed rate

6,330,554 

6,424,500 

14.4 

%

19 

Adjustable rate

116,025 

118,089 

12.8 

%

32 

IO

1,425,469 

90,887 

20.4 

%

22 

Total Agency RMBS

$

7,872,048 

$

6,633,476 

14.5 

%

19 

December 31, 2024

Weighted Average

Current Par Value

Fair Value

CPR (1)

Loan Age (Months)

Agency RMBS

30-Year Fixed rate

4.5%

$

52,192 

$

49,201 

0.5 

%

18 

5.0%

154,590 

149,462 

6.7 

%

19 

5.5%

1,178,435 

1,165,078 

10.3 

%

18 

6.0%

1,234,506 

1,243,222 

14.9 

%

15 

6.5%

323,860 

332,097 

22.0 

%

21 

Total 30-Year Fixed rate

2,943,583 

2,939,060 

13.1 

%

17 

Adjustable rate

131,817 

129,582 

12.3 

%

20 

IO

1,169,330 

68,170 

31.1 

%

17 

Total Agency RMBS

$

4,244,730 

$

3,136,812 

13.6 

%

17 

(1)Three-month weighted average actual conditional prepayment rate, or CPR, of Agency RMBS held as of date indicated.

As of December 31, 2025 and 2024, investment securities with a fair value of $6.4 billion and $3.7 billion, respectively, were pledged as collateral under the Company's outstanding repurchase agreements.

As of December 31, 2025 and 2024, Agency RMBS with a fair value of $68.5 million and $33.4 million, respectively, were pledged as initial margin for outstanding interest rate swaps.

As of December 31, 2025 and 2024, Consolidated SLST subordinated bonds with a fair value of $121.7 million and $114.0 million, respectively, were held in a non-Agency RMBS re-securitization (see “Investment Securities Financing—Collateralized Debt Obligations” below).

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Investment Securities Financing

Repurchase Agreements

As of December 31, 2025, the Company had $6.2 billion outstanding under repurchase agreements with third-party financial institutions to fund a portion of its investment securities available for sale and certain securities owned in Consolidated SLST. These repurchase agreements are short-term financings that bear interest rates typically based on a spread to SOFR and are secured by the investment securities which they finance. Upon entering into a financing transaction, our counterparties negotiate a “haircut”, which is the difference expressed in percentage terms between the fair value of the collateral and the amount the counterparty will advance to us. The size of the haircut represents the counterparty’s perceived risk associated with holding the investment securities as collateral. The haircut provides counterparties with a cushion for daily market value movements that reduce the need for margin calls or margins to be returned as normal daily changes in investment security market values occur. The Company expects to roll outstanding amounts under its repurchase agreements into new repurchase agreements or other financings, or to repay outstanding amounts, prior to or at maturity.

As of December 31, 2025, the Company had no repurchase agreement exposure where the amount of investment securities at risk was in excess of 5% of the Company's stockholders’ equity. As of December 31, 2025, the weighted average interest rate for repurchase agreements secured by investment securities was 4.11%.

The following table details the quarterly average balance, ending balance and maximum balance at any month-end during each quarter in 2025, 2024 and 2023 for our repurchase agreements secured by investment securities (dollar amounts in thousands):

Quarter Ended

Quarterly Average

Balance

End of Quarter

Balance

Maximum Balance at any Month-End

December 31, 2025

$

6,126,602 

$

6,154,086 

$

6,154,086 

September 30, 2025

5,768,898 

6,100,691 

6,198,269 

June 30, 2025

4,512,106 

4,602,078 

4,602,078 

March 31, 2025

4,000,724 

4,128,622 

4,156,941 

December 31, 2024

3,328,795 

3,516,611 

3,516,611 

September 30, 2024

2,772,203 

3,045,597 

3,045,597 

June 30, 2024

2,202,770 

2,447,851 

2,447,851 

March 31, 2024

2,078,041 

2,057,361 

2,126,993 

December 31, 2023

1,851,577 

1,862,063 

1,870,941 

September 30, 2023

1,184,714 

1,490,996 

1,490,996 

June 30, 2023

492,473 

664,459 

664,459 

March 31, 2023

131,174 

226,778 

226,778 

Collateralized Debt Obligations

We refer to our re-securitization of the Company's investment in certain subordinated securities issued by Consolidated SLST as our non-Agency RMBS re-securitization. The Company engaged in the re-securitization transaction primarily for the purpose of obtaining non-recourse, longer-term financing on a portion of its investment in Consolidated SLST. The Company remains economically exposed to the subordinated positions in the portion of Consolidated SLST transferred to the securitization and continues to consolidate Consolidated SLST.

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The following table presents a summary of CDOs issued by our non-Agency RMBS re-securitization as of December 31, 2025 and 2024, respectively (dollar amounts in thousands):

Outstanding Face Amount

Carrying Value

Interest Rate (1)(2)

Stated Maturity (3)

December 31, 2025

$

65,331 

$

65,276 

7.38 

%

2064

December 31, 2024

70,867 

70,757 

7.38 

%

2064

(1)Interest rate is calculated using the outstanding face amount and stated interest rate of notes issued by the securitization and not owned by the Company.

(2)The Company's non-Agency RMBS re-securitization CDOs contain an interest rate step-up feature whereby the interest rate increases if the outstanding notes are not redeemed by an expected redemption date, as defined in the governing documents. As of December 31, 2025, CDOs with an aggregate outstanding face amount of $65.3 million contain an interest rate step-up feature whereby the interest rate increases by 3.00% beginning July 2027, if the notes are not redeemed before such date.

(3)The actual maturity of the Company's CDOs is primarily determined by the rate of principal prepayments on the assets of the issuing entity. The CDOs are also subject to redemption prior to the stated maturity according to the terms of the governing documents. As a result, the actual maturity of the CDOs may occur earlier than the stated maturity.

The Company has elected the fair value option for CDOs issued by its non-Agency RMBS re-securitization (see Note 17). For the years ended December 31, 2025 and 2024, the Company recognized $55.9 thousand and $179.8 thousand in net unrealized losses, respectively, on its non-Agency RMBS re-securitization, which are included in unrealized gains (losses), net on the accompanying consolidated statements of operations.

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Residential Loans

The following table presents the Company’s residential loans, which include acquired and originated residential loans held in the Company's investment portfolio, residential loans held in Consolidated SLST and originated residential loans held for sale as of December 31, 2025 and 2024, respectively (dollar amounts in thousands):

December 31, 2025

December 31, 2024

Acquired and originated residential loans

$

3,192,498 

$

2,876,066 

Consolidated SLST

1,165,677 

965,672 

Originated residential loans held for sale

80,707 

— 

Total

$

4,438,882 

$

3,841,738 

Acquired and Originated Residential Loans

Acquired and originated residential loans include business purpose loans and performing, re-performing, and non-performing residential loans and are presented at fair value on our consolidated balance sheets. Subsequent changes in fair value are reported in current period earnings and presented in unrealized gains (losses), net on the Company’s consolidated statements of operations.

The following table details our acquired and originated residential loans by strategy at December 31, 2025 and 2024, respectively (dollar amounts in thousands):

December 31, 2025

Number of Loans

Unpaid Principal

Fair Value

Weighted Average FICO

Weighted Average LTV (1)

Weighted Average Coupon

Business purpose rental loan strategy

7,768 

$

1,529,273 

$

1,569,595 

748

71%

7.05%

Business purpose bridge loan strategy

1,705 

827,810 

815,625 

740

65%

10.32%

Performing residential loan strategy

2,377 

543,278 

484,946 

744

52%

4.25%

Re-performing residential loan strategy

2,642 

331,969 

322,332 

659

46%

5.14%

Total

14,492 

$

3,232,330 

$

3,192,498 

December 31, 2024

Number of Loans

Unpaid Principal

Fair Value

Weighted Average FICO

Weighted Average LTV (1)

Weighted Average Coupon

Business purpose rental loan strategy

3,418 

$

769,843 

$

758,040 

746

73%

6.82%

Business purpose bridge loan strategy

2,321 

1,176,555 

1,157,085 

742

65%

10.50%

Performing residential loan strategy

2,630 

610,203 

525,267 

740

58%

4.18%

Re-performing residential loan strategy

3,484 

461,101 

435,674 

636

54%

5.17%

Total

11,853 

$

3,017,702 

$

2,876,066 

(1)For second mortgages (included in performing residential loan strategy), the Company calculates the combined loan-to-value ("LTV"). For business purpose bridge loans, the Company calculates LTV as the ratio of the maximum unpaid principal balance of the loan, including unfunded commitments, to the estimated “after repaired” value of the collateral securing the related loan.

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Characteristics of Our Acquired and Originated Residential Loans:

Loan to Value at Purchase (1)

December 31, 2025

December 31, 2024

50% or less

7.4 

%

9.0 

%

50% - 60%

8.3 

%

9.7 

%

60% - 70%

21.7 

%

21.7 

%

70% - 80%

46.7 

%

38.0 

%

80% - 90%

9.6 

%

12.7 

%

90% - 100%

3.7 

%

4.7 

%

 100%

2.6 

%

4.2 

%

Total

100.0 

%

100.0 

%

(1)For second mortgages, the Company calculates the combined LTV. For business purpose bridge loans, the Company calculates LTV as the ratio of the maximum unpaid principal balance of the loan, including unfunded commitments, to the estimated “after repaired” value of the collateral securing the related loan.

FICO Scores at Purchase

December 31, 2025

December 31, 2024

550 or less

3.5 

%

5.6 

%

551 to 600

3.3 

%

4.8 

%

601 to 650

4.0 

%

5.3 

%

651 to 700

13.2 

%

14.6 

%

701 to 750

31.1 

%

27.5 

%

751 to 800

36.6 

%

34.5 

%

801 and over

8.3 

%

7.7 

%

Total

100.0 

%

100.0 

%

Current Coupon

December 31, 2025

December 31, 2024

3.00% or less

4.3 

%

5.4 

%

3.01% - 4.00%

9.1 

%

11.6 

%

4.01% - 5.00%

11.0 

%

14.2 

%

5.01% - 6.00%

5.0 

%

5.9 

%

6.01% - 7.00%

15.3 

%

7.6 

%

7.01% - 8.00%

22.2 

%

11.5 

%

8.01% and over

33.1 

%

43.8 

%

Total

100.0 

%

100.0 

%

Delinquency Status

December 31, 2025

December 31, 2024

Current

95.0 

%

91.2 

%

31 – 60 days

0.9 

%

1.6 

%

61 – 90 days

0.5 

%

1.1 

%

90+ days

3.6 

%

6.1 

%

Total

100.0 

%

100.0 

%

Origination Year

December 31, 2025

December 31, 2024

2007 or earlier

9.3 

%

13.8 

%

2008 - 2019

6.4 

%

8.3 

%

2020 - 2022

19.2 

%

27.1 

%

2023

3.4 

%

8.2 

%

2024

22.2 

%

42.6 

%

2025

39.5 

%

— 

Total

100.0 

%

100.0 

%

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Table of Contents

On July 15, 2025, the Company acquired the outstanding membership interests in Constructive that were not previously owned by the Company (see Note 24). Prior to July 15, 2025, the Company purchased approximately $299.6 million of residential loans from Constructive during the year ended December 31, 2025. The Company purchased $307.8 million and $80.8 million from the entity during the years ended December 31, 2024 and 2023, respectively. The Company sold approximately $18.7 million of residential loans to Constructive prior to July 15, 2025, recognizing a realized gain of approximately $0.2 million for the year ended December 31, 2025.

Consolidated SLST

The Company owns first loss subordinated securities and certain IOs issued by Freddie Mac-sponsored residential loan securitizations. In accordance with GAAP, the Company has consolidated the underlying seasoned re-performing and non-performing residential loans of the securitizations and the CDOs issued to permanently finance these residential loans, representing Consolidated SLST.

During the year ended December 31, 2025, the Company invested in a subordinated security issued by a Freddie Mac-sponsored residential loan securitization, resulting in the initial consolidation of approximately $247.4 million of residential loans and approximately $235.2 million of CDOs in the VIE. During the year ended December 31, 2024, the Company invested in a subordinated security issued by a Freddie Mac-sponsored residential loan securitization, resulting in the initial consolidation of approximately $285.1 million of residential loans and approximately $275.2 million of CDOs in the VIE. Our investment in Consolidated SLST as of December 31, 2025 and 2024 was limited to the RMBS comprised of first loss subordinated securities and certain IOs issued by the respective securitizations with an aggregate net carrying value of $151.5 million and $148.5 million, respectively. For more information on investment securities held by the Company within Consolidated SLST, refer to "Investment Securities" section above.

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The following table details the loan characteristics of the underlying residential loans that back our first loss subordinated securities issued by Consolidated SLST as of December 31, 2025 and 2024, respectively (dollar amounts in thousands, except current average loan size):

December 31, 2025

December 31, 2024

Current fair value

$

1,165,677 

$

965,672 

Current unpaid principal balance

$

1,307,770 

$

1,111,633 

Number of loans

8,641 

7,246 

Current average loan size

$

151,345 

$

153,413 

Weighted average original loan term (in months) at purchase

346 

347 

Weighted average LTV at purchase

66 

%

62 

%

Weighted average credit score at purchase

787 

767 

Current Coupon:

3.00% or less

6.8 

%

5.1 

%

3.01% – 4.00%

36.1 

%

35.4 

%

4.01% – 5.00%

38.9 

%

40.6 

%

5.01% – 6.00%

10.7 

%

11.2 

%

6.01% and over

7.5 

%

7.7 

%

Delinquency Status:

Current

68.4 

%

68.2 

%

31 - 60

15.3 

%

15.3 

%

61 - 90

6.0 

%

6.0 

%

90+

10.3 

%

10.5 

%

Origination Year:

2005 or earlier

23.9 

%

27.5 

%

2006

12.5 

%

14.4 

%

2007

18.6 

%

19.8 

%

2008 or later

45.0 

%

38.3 

%

Geographic state concentration (greater than 5.0%):

   California

11.2 

%

11.7 

%

   New York

10.7 

%

10.8 

%

   Florida

8.6 

%

9.1 

%

   Illinois

7.4 

%

6.3 

%

   New Jersey

6.3 

%

6.8 

%

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Originated Residential Loans Held for Sale

Residential loans held for sale, at fair value, consist of business purpose loans originated by Constructive and held for sale to third-party investors in the secondary market as of December 31, 2025.

The following table details the loan characteristics of our residential loans held for sale as of December 31, 2025 (dollar amounts in thousands, except current average loan size):

December 31, 2025

Current fair value

$

80,707 

Current unpaid principal balance

$

78,915 

Number of loans

356 

Current average loan size

$

221,714 

Weighted average FICO

757 

Weighted average LTV

73 

%

Weighted average coupon

7.1 

%

The following tables include additional information on residential loans originated between July 15, 2025 and December 31, 2025 (dollar amounts in thousands):

Originations by Channel

Unpaid Principal

%

Retail

$

107,174 

12.8 

%

Wholesale

732,895 

87.2 

%

Total

$

840,069 

100.0 

%

Originations by Strategy

Unpaid Principal

%

Business purpose rental loan strategy

$

797,265 

94.9 

%

Business purpose bridge loan strategy

42,804 

5.1 

%

Total

$

840,069 

100.0 

%

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Table of Contents

Residential Loans, Real Estate Owned and Single-Family Rental Property Financing

Repurchase Agreements and Warehouse Facilities

As of December 31, 2025, the Company had repurchase agreements or warehouse facilities with eight third-party financial institutions to fund the purchase or origination of residential loans, real estate owned and single-family rental properties. As of December 31, 2025, the Company had no repurchase agreement or warehouse facility exposure where the amount of at risk was in excess of 5% of the Company's stockholders’ equity. The amount at risk is defined as the fair value of assets pledged as collateral to the financing arrangement in excess of the financing arrangement liability.

The following table presents detailed information about these repurchase agreements and warehouse facilities and associated assets pledged as collateral at December 31, 2025 and 2024, respectively (dollar amounts in thousands):

Maximum Aggregate Uncommitted Principal Amount

Outstanding

Repurchase Agreements and Warehouse Facilities

Net Deferred Finance Costs (1)

Carrying Value of Repurchase Agreements and Warehouse Facilities

Carrying Value of Assets Pledged (2)

Weighted Average Rate

Weighted Average Months to Maturity (3)

December 31, 2025

$

3,225,000 

$

599,392 

$

(61)

$

599,331 

$

733,202 

5.80 

%

5.86

December 31, 2024

$

2,775,000 

$

496,410 

$

(796)

$

495,614 

$

659,183 

6.70 

%

9.64

(1)Costs related to the repurchase agreements, which include commitment, underwriting, legal, accounting and other fees, are reflected as deferred charges. Such costs are presented as a deduction from the corresponding debt liability on the Company’s accompanying consolidated balance sheets and are amortized as an adjustment to interest expense over the term of the agreement using the effective interest method, or straight line-method, if the result is not materially different.

(2)Includes residential loans and real estate owned with an aggregate fair value of $538.4 million, residential loans held for sale with a net carrying value of $78.0 million and single-family rental properties with a net carrying value of $116.8 million as of December 31, 2025. Includes residential loans and real estate owned with an aggregate fair value of $524.6 million and single-family rental properties with a net carrying value of $134.6 million as of December 31, 2024.

(3)The Company expects to roll outstanding amounts under these repurchase agreements and warehouse facilities into new financing arrangements or to repay outstanding amounts in full prior to or at maturity.

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The following table details the quarterly average balance, ending balance and maximum balance at any month-end during each quarter in 2025, 2024 and 2023 for our repurchase agreements and warehouse facilities secured by residential loans, residential loans held for sale and single-family rental properties (dollar amounts in thousands):

Quarter Ended

Quarterly Average

Balance

End of Quarter

Balance

Maximum Balance

at any Month-End

December 31, 2025

$

513,152 

$

599,392 

$

599,392 

September 30, 2025

514,353 

380,692 

614,683 

June 30, 2025

310,977 

305,440 

329,477 

March 31, 2025

491,455 

357,483 

561,854 

December 31, 2024

386,047 

496,410 

496,410 

September 30, 2024

656,976 

566,621 

812,828 

June 30, 2024

521,269 

505,542 

576,119 

March 31, 2024

437,826 

456,038 

456,038 

December 31, 2023

559,118 

611,055 

611,055 

September 30, 2023

469,393 

505,477 

505,477 

June 30, 2023

524,264 

481,947 

579,475 

March 31, 2023

579,271 

562,371 

609,885 

Collateralized Debt Obligations

Included in our portfolio are residential loans that are pledged as collateral for CDOs issued by the Company or by Consolidated SLST. The Company had a net investment in Consolidated SLST and other residential loan securitizations of $152.9 million and $284.0 million, respectively, as of December 31, 2025. As of December 31, 2024, the Company had a net investment in Consolidated SLST and other residential loan securitizations of $149.8 million and $215.2 million, respectively.

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The following tables present a summary of Consolidated SLST CDOs and CDOs issued by the Company's residential loan securitizations as of December 31, 2025 and 2024, respectively (dollar amounts in thousands):

December 31, 2025

Outstanding Face Amount

Carrying Value

Weighted Average Interest Rate (1) (2)

Stated Maturity (3)

Consolidated SLST (4)

$

1,055,791 

$

1,006,919 

3.30 

%

2059 - 2065

Residential loan securitizations at fair value (4)

$

2,103,164 

$

2,075,962 

5.35 

%

2029 - 2069

Residential loan securitizations at amortized cost, net

$

363,712 

$

363,645 

3.74 

%

2035 - 2061

December 31, 2024

Outstanding Face Amount

Carrying Value

Weighted Average Interest Rate (1)

Stated Maturity (3)

Consolidated SLST (4)

$

867,004 

$

811,591 

3.49 

%

2059 - 2064

Residential loan securitizations at fair value (4)

$

1,281,896 

$

1,253,332 

5.72 

%

2029 - 2069

Residential loan securitizations at amortized cost, net

$

850,547 

$

842,764 

4.35 

%

2027 - 2062

(1)Weighted average interest rate is calculated using the outstanding face amount and stated interest rate of notes issued by the securitization and not owned by the Company.

(2)Certain of the Company's CDOs contain interest rate step-up features whereby the interest rate increases if the outstanding notes are not redeemed by expected redemption dates, as defined in the respective governing documents. As of December 31, 2025, CDOs with an aggregate outstanding face amount of $1.9 billion contain an interest rate step-up feature whereby the interest rate increases by either 1.00%, 1.50%, or 3.00% on defined dates ranging between 24 months and 48 months after issuance, if the notes are not redeemed before such dates.

(3)The actual maturity of the Company's CDOs are primarily determined by the rate of principal prepayments on the assets of the issuing entity. The CDOs are also subject to redemption prior to the stated maturity according to the terms of the respective governing documents. As a result, the actual maturity of the CDOs may occur earlier than the stated maturity.

(4)The Company has elected the fair value option for CDOs issued by Consolidated SLST and residential loan securitizations completed after January 1, 2024 (see Note 17). See Note 7 for unrealized gains or losses recognized on CDOs issued by Consolidated SLST. For the years ended December 31, 2025 and 2024, the Company recognized $23.0 million and $1.3 million in net unrealized losses, respectively, on residential loan securitizations, which are included in unrealized (losses) gains, net on the accompanying consolidated statements of operations.

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Table of Contents

Mezzanine Lending

The Company's Mezzanine Lending strategy may include preferred equity in, and mezzanine loans to, entities that hold multi-family real estate assets. A preferred equity investment is an equity investment in the entity that owns the underlying property and mezzanine loans are secured by a pledge of the borrower’s equity ownership in the property. We evaluate our Mezzanine Lending investments for accounting treatment as loans versus equity investments. Mezzanine Lending investments for which the characteristics, facts and circumstances indicate that loan accounting treatment is appropriate are included in multi-family loans on our consolidated balance sheets.

Mezzanine Lending investments where the risks and payment characteristics are equivalent to an equity investment are accounted for using the equity method of accounting and are included in equity investments on our consolidated balance sheets. The Company records its equity in earnings or losses from these Mezzanine Lending investments under the hypothetical liquidation of book value method of accounting due to the structures and the preferences it receives on the distributions from these entities pursuant to the respective agreements. Under this method, the Company recognizes income or loss in each period based on the change in liquidation proceeds it would receive from a hypothetical liquidation of its investment.

The Company is also the primary beneficiary of a VIE that owns a multi-family apartment community and in which the Company holds a preferred equity investment. The Company determined that it has the power to direct the activities of the VIE and consolidates this VIE into its consolidated financial statements.

During the year ended December 31, 2024, the Company negotiated a short-term maturity extension on one preferred equity investment that included an increase in preferred return rate to a current market rate. During the year ended December 31, 2025, the Company negotiated a further short-term maturity extension on this preferred equity investment for which the underlying property was subject to a purchase and sale agreement with a closing date subsequent to the scheduled maturity of the preferred equity investment. This investment was redeemed during the year ended December 31, 2025.

During the year ended December 31, 2024, the Company reduced the fair value of one defaulted preferred equity investment to zero as a result of developments with respect to the property, its financing and market conditions. This investment represents 3.0% of the total investment amount of the Mezzanine Lending portfolio. The Company has also ceased accruals of preferred return on one preferred equity investment and its preferred equity investment in a Consolidated VIE as a result of its evaluation of the hypothetical liquidation value for the respective investments. These investments represent 28.6% of the total investment amount of the Mezzanine Lending portfolio.

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The following tables summarize our Mezzanine Lending portfolio as of December 31, 2025 and 2024, respectively (dollar amounts in thousands):

December 31, 2025

Count

Fair Value (1) (2)

Investment Amount (2)

Weighted Average Preferred Return Rate (3)

Weighted Average Remaining Life (Years)

Preferred equity investments

12 

$

80,187 

$

95,903 

12.59 

%

4.6 

Preferred equity investment in Consolidated VIE (4)

1 

17,344 

17,368 

13.86 

%

6.0 

  Total

13 

$

97,531 

$

113,271 

12.79 

%

4.8 

December 31, 2024

Count

Fair Value (1) (2)

Investment Amount (2)

Weighted Average Preferred Return Rate (3)

Weighted Average Remaining Life (Years)

Preferred equity investments

18 

$

159,628 

$

169,518 

12.80 

%

3.8 

Preferred equity investment in Consolidated VIE (4)

1 

16,967 

16,991 

13.84 

%

7.0 

  Total

19 

$

176,595 

$

186,509 

12.90 

%

4.1 

(1)Preferred equity investments in the amounts of $55.5 million and $86.2 million are included in multi-family loans on the accompanying consolidated balance sheets as of December 31, 2025 and 2024, respectively. Preferred equity investments in the amounts of $24.7 million and $73.4 million are included in equity investments on the accompanying consolidated balance sheets as of December 31, 2025 and 2024, respectively.

(2)The difference between the fair value and investment amount consists of any unrealized gain or loss.

(3)Based upon investment amount and contractual preferred return rate.

(4)Represents the Company's preferred equity investment in a Consolidated VIE that owns a multi-family apartment community. A reconciliation of our preferred equity investment in the Consolidated VIE to our consolidated financial statements as of December 31, 2025 and 2024, respectively, is shown below (dollar amounts in thousands):

December 31, 2025

December 31, 2024

Cash and cash equivalents

$

284 

$

392 

Real estate, net

53,420 

53,508 

Other assets

4,030 

4,939 

Total assets

57,734 

58,839 

Mortgage payable on real estate, net

45,131 

45,120 

Other liabilities

1,962 

1,823 

Total liabilities

47,093 

46,943 

Non-controlling interest in Consolidated VIE

(6,703)

(5,071)

Preferred equity investment in Consolidated VIE

$

17,344 

$

16,967 

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Table of Contents

Mezzanine Lending Characteristics

The following tables present characteristics of our Mezzanine Lending portfolio summarized by geographic concentrations of credit risk exceeding 5% of our total investment amount as of December 31, 2025 and 2024, respectively (dollar amounts in thousands):

December 31, 2025

State

Count

Investment Amount

% Total

Weighted Average Coupon

Weighted Average LTV (1)

Weighted Average DSCR (2)

Texas

6

$

51,536 

45.5 

%

12.40 

%

84 

%

1.10x

Arizona

1

15,031 

13.3 

%

14.00 

%

80 

%

1.49x

South Dakota

1

11,451 

10.1 

%

15.00 

%

86 

%

1.54x

Florida

1

11,022 

9.7 

%

11.00 

%

85 

%

1.00x

South Carolina

1

10,319 

9.1 

%

13.00 

%

77 

%

1.19x

Other

3

13,912 

12.3 

%

12.35 

%

79 

%

1.51x

Total

13

$

113,271 

100.0 

%

12.79 

%

83 

%

1.24x

December 31, 2024

State

Count

Investment Amount

% Total

Weighted Average Coupon

Weighted Average LTV (1)

Weighted Average DSCR (2)

Florida

3

$

54,115 

29.0 

%

13.12 

%

83 

%

0.89x

(3)

Texas

6

49,619 

26.6 

%

12.39 

%

84 

%

1.08x

Arizona

1

15,201 

8.2 

%

14.00 

%

80 

%

1.84x

Tennessee

1

13,045 

7.0 

%

14.00 

%

86 

%

0.51x

(4)

South Dakota

1

10,583 

5.7 

%

15.00 

%

85 

%

1.80x

South Carolina

1

9,645 

5.2 

%

13.00 

%

75 

%

1.47x

Other

6

34,301 

18.3 

%

11.70 

%

83 

%

1.30x

Total

19

$

186,509 

100.0 

%

12.90 

%

83 

%

1.18x

(1)Represents the weighted average LTV utilizing combined senior and mezzanine loans and combined origination appraisal and capital expenditure budget.

(2)Represents the weighted average debt service coverage ratio ("DSCR") of the underlying properties and excludes properties that are subject to a senior construction loan agreement.

(3)DSCR affected by non-recurring expenses during the year ended December 31, 2024.

(4)DSCR affected by senior loan and Mezzanine Lending modifications.

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Table of Contents

Equity Investments in Multi-Family Entities

The Company owns, or owned, joint venture equity investments and a cross-collateralized mezzanine lending investment in entities that own multi-family properties. The Company determined that these entities are VIEs and that the Company is or was the primary beneficiary of all but two of these VIEs, resulting in consolidation of the VIEs where we are or were the primary beneficiary, including their assets, liabilities, income and expenses, in our consolidated financial statements in accordance with GAAP. We receive a preferred return and/or pro rata variable distributions from these investments and, in certain cases, management fees based upon property performance. We also will participate in allocation of excess cash upon sale of the multi-family real estate assets.

The Company repositioned its business through the opportunistic disposition over time of the Company's joint venture equity investments in multi-family properties and reallocation of its capital away from such assets to its targeted assets. Accordingly, the Company determined that certain joint venture equity investments met the criteria to be classified as held for sale and the assets and liabilities of the respective Consolidated VIEs are included in assets and liabilities of disposal group held for sale on the accompanying consolidated balance sheets as of December 31, 2025 and 2024. See Note 9 for additional information. The Company's net equity in consolidated cross-collateralized mezzanine lending and joint venture equity investments and disposal group held for sale totaled $136.1 million and $153.7 million as of December 31, 2025 and 2024, respectively.

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A reconciliation of our combined equity investments in consolidated multi-family properties, including one preferred equity investment in a Consolidated VIE, and in disposal group held for sale to our consolidated financial statements as of December 31, 2025 and 2024, respectively, is shown below (dollar amounts in thousands):

December 31, 2025

December 31, 2024

Cash and cash equivalents

$

3,853 

$

4,151 

Real estate, net

424,655 

481,161 

Assets of disposal group held for sale (1)

1,256 

118,613 

Other assets

26,667 

16,696 

Total assets

$

456,431 

$

620,621 

Mortgages payable on real estate, net (2)

$

332,131 

$

366,606 

Liabilities of disposal group held for sale (1)

122 

97,065 

Other liabilities

9,533 

10,621 

Total liabilities

$

341,786 

$

474,292 

Redeemable non-controlling interest in Consolidated VIEs

$

3,016 

$

12,359 

Less: Cumulative adjustment of redeemable non-controlling interest to estimated redemption value

(42,222)

(40,675)

Non-controlling interest in Consolidated VIEs

(236)

1,887 

Non-controlling interest in disposal group held for sale

610 

2,044 

Net equity investment (3)

153,477 

170,714 

Less: Net equity in preferred equity investment in Consolidated VIE (4)

(17,344)

(16,967)

Remaining net equity investment

$

136,133 

$

153,747 

(1)See Note 9 in the Notes to Consolidated Financial Statements for further information regarding our assets and liabilities of disposal group held for sale.

(2)See Note 15 in the Notes to Consolidated Financial Statements for further information regarding our mortgages payable on real estate.

(3)The Company's net equity investment as of December 31, 2025 consists of $153.0 million of net equity investments in consolidated multi-family properties (including its preferred equity investment in a Consolidated VIE) and $0.5 million of net equity investments in disposal group held for sale. The Company's net equity investment as of December 31, 2024 consists of $151.2 million of net equity investments in consolidated multi-family properties (including its preferred equity investment in a Consolidated VIE) and $19.5 million of net equity investments in disposal group held for sale.

(4)See "Mezzanine Lending" above for description of preferred equity investment in Consolidated VIE.

Cross-Collateralized Mezzanine Lending Investment not in Disposal Group Held for Sale

As of December 31, 2025, the Company's net equity investment in consolidated multi-family properties not in disposal group held for sale of $135.6 million consists of one cross-collateralized mezzanine lending investment that does not meet the criteria to be classified as disposal group held for sale. The entity has third-party investors that have the ability to sell their ownership interests to us, at their election once a year subject to annual minimum and maximum amount limitations, and we are obligated to purchase, subject to certain conditions, such interests for cash, representing redeemable non-controlling interests of approximately $3.0 million as of December 31, 2025.

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The geographic concentration of our cross-collateralized mezzanine lending investment in consolidated multi-family properties exceeding 5% of our total cross-collateralized mezzanine lending investment not in disposal group held for sale as of December 31, 2025 and 2024, respectively, are shown below (dollar amounts in thousands):

December 31, 2025

State

Property Count

Total Equity Ownership Interest

Net Equity Investment (1)

Percentage of Total Net Equity Investment

Texas

4

70%

$

38,997 

48.0 

%

Florida

1

50%

$

16,360 

20.2 

%

Kentucky

1

70%

$

11,443 

14.1 

%

Alabama

1

70%

$

7,403 

9.1 

%

Tennessee

1

65%

$

5,087 

6.3 

%

December 31, 2024

State

Property Count

Total Equity Ownership Interest

Net Equity Investment (1)

Percentage of Total Net Equity Investment

Texas

5

70%

$

50,505 

54.7 

%

Florida

1

50%

$

15,868 

17.2 

%

Kentucky

1

70%

$

11,310 

12.2 

%

Alabama

1

70%

$

7,106 

7.7 

%

Tennessee

1

65%

$

5,557 

6.0 

%

(1)Represents our cross-collateralized mezzanine lending investment net of redeemable non-controlling interest at its estimated redemption value.

Property Data for Cross-Collateralized Mezzanine Lending Investment not in Disposal Group Held for Sale

The following table provides summary information regarding the multi-family properties in our cross-collateralized mezzanine lending investment that is not in disposal group held for sale as of December 31, 2025.

Market

Property Count

Occupancy %

Units

Rent per Unit (1)

LTV (2)

Collierville, TN

1

93.3 

%

324

$

1,490 

82.6 

%

Dallas, TX

1

91.6 

%

252

1,449 

86.6 

%

Houston, TX

1

91.1 

%

192

1,392 

79.0 

%

Little Rock, AR

1

97.3 

%

202

1,375 

90.2 

%

Louisville, KY

1

89.6 

%

300

1,503 

77.1 

%

Montgomery, AL

1

94.5 

%

252

1,120 

86.4 

%

San Antonio, TX

2

91.2 

%

684

1,216 

81.6 

%

St Petersburg, FL

1

97.6 

%

326

2,643 

84.5 

%

Total Count/Average

9

92.9 

%

2,532 

$

1,516 

83.1 

%

(1)Represents average monthly rent per unit.

(2)Represents the weighted average LTV of the underlying properties utilizing combined maximum senior committed mortgage amount and preferred equity balances, if any, and the combined origination appraisal and capital expenditure budget or the most recent appraisal, as applicable.

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Equity Investment in Constructive

On July 15, 2025, the Company acquired the outstanding membership interests in Constructive that were not previously owned by the Company. Prior to this date, the Company accounted for its investment in Constructive using the equity method and elected the fair value option. The following table summarizes our ownership interest in Constructive as of December 31, 2024 (dollar amounts in thousands).

Strategy

Ownership Interest

Fair Value

Constructive Loans, LLC (1)

Residential Loans

50%

$

38,718 

(1)On July 15, 2025, the Company acquired the outstanding membership interests in Constructive that were not previously owned by the Company.

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Derivative Assets and Liabilities

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company enters into derivative instruments in connection with its risk management activities to manage exposure to changes in interest rates, market values, credit performance and broader geopolitical and market conditions affecting our assets and liabilities. The Company elected not to apply hedge accounting for its derivative instruments. Accordingly, all derivatives are recognized at fair value on the consolidated financial statements, and changes in fair value are recorded in current period earnings. Derivative instruments used by the Company may include interest rate swaps, interest rate caps, TBAs, credit default swaps, U.S. Treasury and commodity futures and options contracts such as options on credit default swap indices, equity index options, swaptions and options on futures. The Company may also invest in other types of mortgage derivative securities. Constructive may enter into certain interest rate lock commitments (“IRLCs”) which represent a commitment to a particular interest rate provided the borrower is able to close the respective loan within a specified period.

The Company primarily uses interest rate swaps to hedge the variable cash flows associated with our variable-rate borrowings. Interest rate swaps generally involve the receipt of variable-rate amounts from a counterparty, based on SOFR, in exchange for the Company making fixed-rate payments over the life of the interest rate swap without exchange of the underlying notional amount. Notwithstanding the foregoing, in order to manage its position with regard to its liabilities, the Company may also enter into interest rate swaps which involve the receipt of fixed-rate amounts from a counterparty in exchange for the Company making variable-rate payments, based on SOFR, over the life of the interest rate swap without exchange of the underlying notional amount. The variable rate the Company pays or receives under its swap agreements has the effect of offsetting the repricing characteristics and cash flows of the Company's financing arrangements. The Company also has U.S. Treasury futures to manage exposure to changes in interest rate risk. U.S. Treasury future contracts obligate the Company to sell or buy U.S. Treasury securities for future delivery.

The Company may use TBAs to mitigate interest rate risk and also may invest in TBAs as a means of acquiring additional exposure to Agency fixed-rate RMBS. TBAs are forward contracts for the purchase (“long position”) or sale (“short position”) of Agency fixed-rate RMBS at a predetermined price, face amount, issuer, coupon, and stated maturity on an agreed-upon future date. The specific Agency RMBS delivered into or received from the contract upon settlement date, published each month by the Securities Industry and Financial Markets Association, are not known at the time of the transaction. The Company may also choose, prior to settlement, to move the settlement of these securities out to a later date by entering into an offsetting short or long position (referred to as a “pair off”), net settling the paired off positions for cash, simultaneously purchasing or selling a similar TBA contract for a later settlement date. This transaction is commonly referred to as a “dollar roll”. The Agency RMBS purchased or sold for a forward settlement date are typically priced at a discount to Agency RMBS for settlement in the current month. This difference, or discount, is referred to as the “price drop”. The price drop represents the economic equivalent of net interest income on the underlying Agency RMBS over the roll period (interest income less implied financing cost) and is commonly referred to as “dollar roll income/(loss)”. Consequently, forward purchases of Agency RMBS and dollar roll transactions represent a form of off-balance sheet financing.

The Company may, from time to time, use other types of derivatives instruments such as commodity futures and options contracts to manage broader geopolitical and market risk. Commodity future contracts obligate the Company to sell or buy a specific quantity of the commodity at a predetermined price for future delivery. The Company has also purchased credit default swap index contracts under which a counterparty, in exchange for a premium, agrees to compensate the Company for the financial loss associated with the occurrence of a credit event in relation to a notional value of an index. The Company may purchase equity index put options that give the Company the right to sell or buy the underlying index at a specified strike price. The Company may also purchase credit default swap index options that allow the Company to enter into a fixed rate payor position in the underlying credit default swap index at the agreed-upon strike level.

The Company and Consolidated Real Estate VIEs may be required by lenders on certain repurchase agreement financing and variable-rate mortgages payable on real estate to enter into interest rate cap contracts. These interest rate cap contracts are with a counterparty that involve the receipt of variable-rate amounts from the counterparty if interest rates rise above the strike rate on the contract in exchange for an up-front premium. During the period these contracts are open, changes in the value of the contract are recognized as gains or losses on derivative instruments.

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Debt

The Company’s debt as of December 31, 2025 included senior unsecured notes and subordinated debentures.

Senior Unsecured Notes

The following table presents a summary of the Senior Unsecured Notes as of December 31, 2025 (dollar amounts in thousands):

Outstanding Face Amount

Carrying Value

Interest Rate

Maturity Date

Optional Redemption Date

9.875% 2030 Senior Notes at fair value

$

115,000 

$

118,496 

9.875 

%

October 1, 2030

October 1, 2027

9.125% 2030 Senior Notes at fair value

82,500 

82,431 

9.125 

%

April 1, 2030

April 1, 2027

2029 Senior Notes at fair value

60,000 

59,925 

9.125 

%

July 1, 2029

July 1, 2026

2026 Senior Notes at amortized cost, net (1)

100,000 

99,585 

5.75 

%

April 30, 2026

April 30, 2023

Total Senior Unsecured Notes

$

357,500 

$

360,437 

(1)The 2026 Senior Notes were issued at par and carry deferred charges resulting in a total cost to the Company of approximately 6.73%. These notes contain various covenants including the maintenance of a minimum net asset value, ratio of unencumbered assets to unsecured indebtedness and senior debt service coverage ratio. In addition, the 2026 Senior Notes limit the amount of Company leverage, net of cash held by the Company, to no more than eight times its equity and limit the Company's ability to transfer its assets substantially as an entirety or merge into or consolidate with another person. The Company redeemed its 2026 Senior Notes at 100% of the $100.0 million principal amount plus accrued but unpaid interest to, but excluding, the redemption date, for a total payment of $101.5 million on February 2, 2026.

Subordinated Debentures

As of December 31, 2025, certain of our wholly-owned subsidiaries had trust preferred securities outstanding of $45.0 million with a weighted average interest rate of 7.85% which are due in 2035. The securities are fully guaranteed by us with respect to distributions and amounts payable upon liquidation, redemption or repayment. These securities are classified as subordinated debentures in the liability section of our consolidated balance sheets.

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Balance Sheet Analysis - Company’s Stockholders’ Equity

The following table provides a summary of the Company's stockholders' equity at December 31, 2025 and 2024, respectively (dollar amounts in thousands):

December 31, 2025

December 31, 2024

8.000% Series D Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock

$

148,585 

$

147,745 

7.875% Series E Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock

180,453 

177,697 

6.875% Series F Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock

139,792 

138,418 

7.000% Series G Cumulative Redeemable Preferred Stock

71,642 

71,585 

Common stock

903 

906 

Additional paid-in capital

2,294,194 

2,289,044 

Accumulated deficit

(1,408,647)

(1,430,675)

Company's stockholders' equity

$

1,426,922 

$

1,394,720 

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Liquidity and Capital Resources

General

Liquidity is a measure of our ability to meet potential cash requirements. Our short-term (the 12 months ending December 31, 2026) and long-term (beyond December 31, 2026) liquidity requirements include ongoing commitments to repay borrowings, fund and maintain investments, comply with margin requirements, fund our operations, pay dividends to our stockholders and other general business needs. Generally, our short-term and long-term liquidity needs are met by our existing cash balances and our investments and assets which generate liquidity on an ongoing basis through principal and interest payments, prepayments, net earnings retained prior to payment of dividends and distributions from equity investments. In addition, we may satisfy our short-term and/or long-term liquidity needs through the sale of assets from our investment portfolio, securities offerings or the securitization or collateralized financing of our assets.

We continue to seek out assets and markets that provide compelling risk-adjusted returns through residential loan repurchase agreement financing with terms of one year or more or sustainable non-mark-to-market financing arrangements, including securitizations and non-mark-to-market repurchase agreement or warehouse facility financing. Beginning in 2023 and through the year ended December 31, 2025, we have been expanding our holdings of Agency RMBS, which is more liquid than many if not all of the credit investments in our portfolio. To expand our Agency RMBS portfolio, we have utilized mark-to-market repurchase agreement financing with terms of 30 days to 90 days. As of December 31, 2025, the Company’s portfolio recourse leverage ratio of 4.7x remains within our target range. As of December 31, 2025, 70% of our debt, excluding mortgages payable on real estate and Consolidated SLST CDOs, is subject to mark-to-market margin calls, with 61% of that debt collateralized by Agency RMBS, 6% collateralized by residential credit assets and 3% collateralized by U.S. Treasury securities. The remaining 30% has no exposure to collateral repricing by our counterparties.

We expect to continue to opportunistically dispose of assets from our portfolio and generate higher portfolio turnover in order to pursue investments across the residential housing sector. We focus on acquiring assets with less price sensitivity to credit deterioration that are capable of expanding our interest income, like Agency RMBS, and maintaining low duration credit exposure by purchasing business purpose loans. We also intend to maintain a solid position in unrestricted cash and remain committed to prudently managing our liabilities. At December 31, 2025, we had $206.5 million of available cash and cash equivalents (excluding cash and cash equivalents held by Consolidated Real Estate VIEs), $454.0 million of unencumbered investment securities (including the securities we own in Consolidated SLST) and $54.4 million of unencumbered residential loans.

We historically have endeavored to fund our investments and operations through a balanced and diverse funding mix, including proceeds from the issuance of common and preferred equity and debt securities, short-term and longer-term repurchase agreements and warehouse facilities and CDOs. With respect to Consolidated Real Estate VIEs, the multi-family properties are encumbered by a senior mortgage loan. The type and terms of the ultimate financing used by us depends on the asset being financed and the financing available at the time of the financing. We have placed a greater emphasis on procuring, where appropriate, longer-termed and/or more committed financing arrangements for certain of our credit investments, such as securitizations, term financings and corporate debt securities that provide less or no exposure to fluctuations in the collateral repricing determinations of financing counterparties or rapid liquidity reductions in repurchase agreement financing markets. Although we expect our leverage to continue to move higher as we access additional liquidity and grow our investment portfolio further, we intend to continue to focus on procuring longer-term and non-mark-to-market financing arrangements for certain parts of our credit portfolio.

Based on current market conditions, our current investments, new investment initiatives, expectations to dispose of assets from time to time on terms favorable to us, leverage ratio and available and future possible financing arrangements, we believe our existing cash balances, funds available under our various financing arrangements and cash flows from operations will meet our liquidity requirements for at least the next 12 months. We will continue to explore additional financing arrangements to further strengthen our balance sheet and position ourselves for future investment opportunities, including, without limitation, additional issuances of our equity and debt securities and longer-termed financing arrangements; however, no assurance can be given that we will be able to access any such financing, or the size, timing or terms thereof.

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Cash Flows and Liquidity for the Year Ended December 31, 2025

During the year ended December 31, 2025, net cash, cash equivalents and restricted cash increased by $13.4 million.

Cash Flows from Operating Activities

We generated net cash flows from operating activities totaling $134.0 million during the year ended December 31, 2025. Our cash flow provided by operating activities differs from our net income due to these primary factors: (i) differences between (a) accretion, amortization, depreciation and recognition of income and losses recorded with respect to our investments and (b) the cash received therefrom and (ii) unrealized gains and losses on our investments (including impairment of real estate).

Cash Flows Used in Investing Activities

During the year ended December 31, 2025, our net cash flows used in investing activities were $2.9 billion, primarily as a result of purchases of investment securities, purchases and origination of residential loans held in our investment portfolio, net variation margin paid for derivative instruments and the acquisition of the outstanding ownership interests in Constructive that were not previously owned by the Company (net of cash and restricted cash acquired). This was partially offset by principal repayments received on residential loans, investment securities and preferred equity investments, net proceeds from the sale of investment securities, residential loans and real estate, net payments received from derivative instruments and return of capital from equity investments.

Although we generally intend to hold our assets as long-term investments, we may sell certain of these assets in order to manage our interest rate risk and liquidity needs, to meet other operating objectives or to adapt to market conditions. We cannot predict the timing and impact of future sales of assets, if any.

Because a portion of our assets are financed through repurchase agreements, warehouse facilities or CDOs, a portion of the proceeds from any sales of or principal repayments on our assets may be used to repay balances under these financing sources. Accordingly, all or a significant portion of cash flows from principal repayments received from residential loans, including residential loans held in Consolidated SLST, and proceeds from sales or principal paydowns received from investment securities available for sale were used to repay CDOs issued by the respective Consolidated VIEs or repurchase agreements (included as cash used in financing activities). Additionally, a significant portion of cash flows from the sale of real estate held in Consolidated VIEs, if any, were used to repay outstanding mortgages payable on real estate held in Consolidated VIEs.

Cash Flows from Financing Activities

During the year ended December 31, 2025, our net cash flows provided by financing activities were $2.8 billion. The main sources of cash flows from financing activities were proceeds received from repurchase agreements and warehouse facilities and proceeds from the issuance of CDOs and senior unsecured notes. This was partially offset by paydowns on and extinguishment of CDOs, payments made on Consolidated SLST CDOs, net payments made on mortgages payable on real estate and dividend payments on both common and preferred stock.

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Liquidity – Financing Arrangements

As of December 31, 2025, we have outstanding short-term repurchase agreement financing on our investment securities, a form of collateralized short-term financing, with multiple financial institutions. The repurchase agreements we use to finance our investment securities are secured by certain of our investment securities and bear interest rates that move in close relationship to SOFR. Any financings under these repurchase agreements are based on the fair value of the assets that serve as collateral under these agreements. Interest rate changes and increased prepayment activity can have a negative impact on the valuation of these securities, reducing the amount we can borrow under these agreements. Moreover, these repurchase agreements allow the counterparties to determine a new market value of the collateral to reflect current market conditions and because these lines of financing are not committed, the counterparty can effectively call the loan at any time. Market value of the collateral represents the price of such collateral obtained from generally recognized sources or the most recent closing bid quotation from such source plus accrued income. If a counterparty determines that the value of the collateral has decreased, the counterparty may initiate a margin call and require us to either post additional collateral to cover such decrease or repay a portion of the outstanding amount financed in cash, on minimal notice, and repurchase may be accelerated upon an event of default under the repurchase agreements. Moreover, in the event an existing counterparty elected to not renew the outstanding balance at its maturity into a new repurchase agreement, we would be required to repay the outstanding balance with cash or proceeds received from a new counterparty or to surrender the securities that serve as collateral for the outstanding balance, or any combination thereof. If we were unable to secure financing from a new counterparty and had to surrender the collateral, we would expect to incur a loss. In addition, in the event a repurchase agreement counterparty defaults on its obligation to “re-sell” or return to us the assets that are securing the financing at the end of the term of the repurchase agreement, we would incur a loss on the transaction equal to the amount of “haircut” associated with the short-term repurchase agreement, which we sometimes refer to as the “amount at risk.”

At December 31, 2025, we had longer-term repurchase agreements with initial terms of up to three years with multiple third-party financial institutions that are secured by certain of our residential loans, real estate owned and single-family rental properties in our investment portfolio. Also as of December 31, 2025, Constructive had outstanding short-term warehouse facilities of less than one year on residential loans held for sale. The outstanding financing under certain of these repurchase agreements and warehouse facilities is secured by the underlying residential loans and other related collateral and is subject to margin-type provisions that may require repayment of a portion of the borrowings or the posting of additional collateral if the market value of the collateral falls below specified levels or certain eligibility criteria are not met. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Balance Sheet Analysis—Residential Loans, Real Estate Owned and Single-Family Rental Property Financing—Repurchase Agreements" for further information. During the terms of the repurchase agreements and warehouse facilities, proceeds from the residential loans, residential loans held for sale, real estate owned and single-family rental properties will be applied to pay any price differential, if applicable, and to reduce the aggregate repurchase price of the collateral. Repurchase of the residential loans, real estate owned and single-family rental properties financed by the repurchase agreements or repayment obligations under warehouse revolving facilities may be accelerated upon an event of default. The repurchase agreements and warehouse facilities secured by residential loans, residential loans held for sale, real estate owned and single-family rental properties contain various covenants, including among other things, the maintenance of certain amounts of liquidity and stockholders' equity (as defined in the respective agreements). As of December 31, 2025, we had an aggregate amount at risk under repurchase agreements and warehouse facilities secured by residential loans, real estate owned and single-family rental properties of approximately $133.8 million, which represents the difference between the carrying value of the collateral pledged and the outstanding balance of our repurchase agreements and warehouse facilities. Significant margin calls have had, and could in the future have, a material adverse effect on our results of operations, financial condition, business, liquidity and ability to make distributions to our stockholders. See “Liquidity and Capital Resources—General” above.

As of December 31, 2025, we had assets available to be posted as margin which included liquid assets, such as unrestricted cash and cash equivalents, and unencumbered investment securities that could be monetized to pay down or collateralize a liability immediately. As of December 31, 2025, we had $206.5 million included in cash and cash equivalents and $454.0 million in unencumbered investment securities available to meet additional haircuts or market valuation requirements. The unencumbered investment securities that we believe may be posted as margin as of December 31, 2025 included $421.3 million of Agency RMBS and $32.7 million of non-Agency RMBS (including an IO security we own in Consolidated SLST).

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At December 31, 2025, the Company had $100.0 million aggregate principal amount of 2026 Senior Notes outstanding. The 2026 Senior Notes were issued at 100% of the principal amount and bear interest at a rate equal to 5.75% per year (subject to adjustment from time to time based on changes in the ratings of the 2026 Senior Notes by one or more nationally recognized statistical rating organizations), payable semi-annually in arrears on April 30 and October 30 of each year, and mature on April 30, 2026, unless earlier redeemed. The Company has the right to redeem the 2026 Senior Notes, in whole or in part, prior to maturity, subject to a "make-whole" premium or other date-dependent multiples of principal amount redeemed. No sinking fund is provided for the 2026 Senior Notes. The Company's 2026 Senior Notes also contain various covenants including the maintenance of a minimum net asset value, ratio of unencumbered assets to unsecured indebtedness and senior debt service coverage ratio. In addition, the 2026 Senior Notes limit the amount of Company leverage, net of cash held by the Company, to no more than eight times its equity and limit the Company's ability to transfer its assets substantially as an entirety or merge into or consolidate with another person. On February 2, 2026, the Company redeemed the 2026 Senior Notes at 100% of the $100.0 million principal amount plus accrued but unpaid interest to, but excluding, the redemption date, for a total payment of $101.5 million.

At December 31, 2025, the Company had $60.0 million aggregate principal amount of 2029 Senior Notes outstanding. The 2029 Senior Notes were issued at 100% of the principal amount and bear interest at a rate equal to 9.125% per year, payable quarterly in arrears on January 1, April 1, July 1, and October 1 of each year, beginning on October 1, 2024, and mature on July 1, 2029, unless earlier redeemed. The Company has the right to redeem the 2029 Senior Notes, in whole or in part, at any time on or after July 1, 2026, at a redemption price equal to 100% of the outstanding principal amount redeemed. No sinking fund is provided for the 2029 Senior Notes.

At December 31, 2025, the Company had $82.5 million aggregate principal amount of 9.125% 2030 Senior Notes outstanding. The 9.125% 2030 Senior Notes were issued at 100% of the principal amount and bear interest at a rate equal to 9.125% per year, payable quarterly in arrears on January 1, April 1, July 1, and October 1 of each year, beginning on April 1, 2025, and mature on April 1, 2030, unless earlier redeemed. The Company has the right to redeem the 9.125% 2030 Senior Notes, in whole or in part, at any time on or after April 1, 2027, at a redemption price equal to 100% of the outstanding principal amount redeemed. No sinking fund is provided for the 9.125% 2030 Senior Notes.

At December 31, 2025, the Company had $115.0 million aggregate principal amount of 9.875% 2030 Senior Notes outstanding. The 9.875% 2030 Senior Notes were issued at 100% of the principal amount and bear interest at a rate equal to 9.875% per year, payable quarterly in arrears on January 1, April 1, July 1 and October 1 of each year, beginning on October 1, 2025, and mature on October 1, 2030, unless earlier redeemed. The Company has the right to redeem the 9.875% 2030 Senior Notes, in whole or in part, at any time on or after October 1, 2027, at a redemption price equal to 100% of the outstanding principal amount redeemed. No sinking fund is provided for the 9.875% 2030 Senior Notes.

At December 31, 2025, we also had other longer-term debt which includes Company-sponsored residential loan securitization CDOs with a carrying value of $2.4 billion and non-Agency RMBS re-securitization CDOs with a carrying value of $65.3 million. We had 14 Company-sponsored securitizations with CDOs outstanding as of December 31, 2025. See Note 14 to our consolidated financial statements included in this report for further discussion.

The real estate assets held by Consolidated Real Estate VIEs are subject to mortgages payable. We have no obligation for repayment of the mortgages payable but, with respect to certain of the mortgages payable, we may execute a guaranty related to commitment of bad acts and our equity investment may be lost or reduced to the extent a lender forecloses on the property.

As of December 31, 2025, our Company recourse leverage ratio, which represents our total outstanding recourse repurchase agreement financing and warehouse facility financing, subordinated debentures and senior unsecured notes divided by our total stockholders' equity, was approximately 5.0 to 1. Our Company recourse leverage ratio does not include outstanding non-recourse repurchase agreement financing, debt associated with CDOs or mortgages payable on real estate. As of December 31, 2025, our portfolio recourse leverage ratio, which represents our outstanding recourse repurchase agreement and warehouse facility financing divided by our total stockholders' equity, was approximately 4.7 to 1. We monitor all at risk or shorter-term financings to enable us to respond to market disruptions as they arise.

Liquidity – Hedging and Other Factors

Certain of our hedging instruments may also impact our liquidity. We may use interest rate swaps, interest rate caps, credit default swaps, U.S. Treasury and commodity futures and options contracts such as options on credit default swap indices, equity index options, swaptions and options on futures. We may also use TBAs or other futures contracts to hedge interest rate and market value risk associated with our investment portfolio.

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With respect to interest rate swaps, credit default swaps, U.S. Treasury and commodity futures contracts and TBAs, initial margin deposits, which can be comprised of either cash or investment securities, may be made upon entering into these contracts. During the period these contracts are open, changes in the value of the contract are recognized as unrealized gains or losses by marking to market on a daily basis to reflect the market value of these contracts at the end of each day’s trading. We may be required to satisfy variation margin payments periodically, depending upon whether unrealized gains or losses are incurred. In addition, because delivery of TBAs extend beyond the typical settlement dates for most non-derivative investments, these transactions are more prone to market fluctuations between the trade date and the ultimate settlement date, and thereby are more vulnerable to increasing amounts at risk with the applicable counterparties.

As it relates to the variable-rate mortgage payable in a Consolidated Real Estate VIE, the VIE may be required by the lender to enter into an interest rate cap contract. In addition, with respect to one of the Company's financings under repurchase agreements, the lender has, in the past, required the Company to enter into an interest rate cap contract. These interest rate cap contracts are with a counterparty that involve the receipt of variable-rate amounts from the counterparty if interest rates rise above the strike rate on the contract in exchange for an up-front premium. During the period these contracts are open, changes in the value of the contract are recognized as gains or losses on derivative instruments. The Consolidated Real Estate VIE that owns the multi-family property may be required to enter into a new interest rate cap contract upon its expiration and may require the Company to contribute additional capital to the respective VIE.

Liquidity — Securities Offerings

In addition to the financing arrangements described above under the caption “Liquidity—Financing Arrangements,” we also rely on follow-on equity offerings of common and preferred stock, and may utilize from time to time debt securities offerings, as a source of both short-term and long-term liquidity. We also may generate liquidity through the sale of shares of our common stock or preferred stock in “at-the-market” equity offering programs pursuant to equity distribution agreements. During the year ended December 31, 2025, the Company issued 221,260 shares of Preferred Stock under the Preferred Equity Distribution Agreement at an average price of $23.19 per share, resulting in total net proceeds to the Company of approximately $5.1 million. As of December 31, 2025, approximately $44.9 million of Preferred Stock remains available for issuance under the Preferred Equity Distribution Agreement. The Company also issued the 9.125% 2030 Senior Notes and the 9.875% 2030 Senior Notes in public offerings during the year ended December 31, 2025.

Preferred Stock and Common Stock Repurchase Programs

In March 2023, the Board of Directors approved a $100.0 million preferred stock repurchase program. The program allows the Company to make repurchases of shares of preferred stock, from time to time, in open market transactions, through privately negotiated transactions or block trades or other means, in accordance with applicable securities laws and the rules and regulations of Nasdaq. The Company did not repurchase any shares of its preferred stock during the year ended December 31, 2025. As of December 31, 2025, $97.6 million of the approved amount remained available for the repurchase of shares of preferred stock under the preferred stock repurchase program. The preferred stock repurchase program expires on March 31, 2027.

In February 2022, the Board of Directors approved a $200.0 million common stock repurchase program. In March 2023, the Board of Directors approved an upsize of the common stock repurchase program to $246.0 million. The program allows the Company to make repurchases of shares of common stock, from time to time, in open market transactions, through privately negotiated transactions or block trades or other means, in accordance with applicable securities laws and the rules and regulations of Nasdaq. During the year ended December 31, 2025, the Company repurchased 231,200 shares of its common stock pursuant to the common stock repurchase program for a total cost of approximately $1.5 million, including fees and commissions paid to the broker, representing an average repurchase price of $6.50 per common share. As of December 31, 2025, $188.2 million of the approved amount remained available for the repurchase of shares of the Company's common stock under the common stock repurchase program. The common stock repurchase program expires on March 31, 2027.

Dividends

For information regarding the declaration and payment of dividends on our common stock and preferred stock for the periods covered by this report, please see Note 18 to our consolidated financial statements included in this report. 

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Our Board of Directors will continue to evaluate our dividend policy each quarter and will make adjustments as necessary, based on our earnings and financial condition, capital requirements, maintenance of our REIT qualification, restrictions on making distributions under Maryland law and such other factors as our Board of Directors deems relevant. Our dividend policy does not constitute an obligation to pay dividends.

We intend to make distributions to our stockholders to comply with the various requirements to maintain our REIT status and to minimize or avoid corporate income tax and the nondeductible excise tax. However, differences in timing between the recognition of REIT taxable income and the actual receipt of cash could require us to sell assets or to borrow funds on a short-term basis to meet the REIT distribution requirements and to minimize or avoid corporate income tax and the nondeductible excise tax.

In the event we fail to pay dividends on our preferred stock, the Company would become subject to certain limitations on its ability to pay dividends or redeem or repurchase its common stock or preferred stock.

Commitment to Fund Business Purpose Loans

As of December 31, 2025, the Company had commitments to fund up to $149.4 million of additional advances on existing business purpose loans. These commitments are generally subject to loan agreements with terms that must be met before we fund advances on the commitment. In addition, from time to time, Constructive makes short-term commitments to originate business purpose loans and such commitments totaled $102.0 million as of December 31, 2025.

Repurchase Reserves for Origination Activity

As a seller of business purpose loans to third-party investors in the secondary market, Constructive may be required to repurchase or reimburse the investors for credit losses incurred on business purpose loans that fail to meet certain customary representations and warranties made in conjunction with sales of the loans. The loan repurchase reserve liability related to such customary representations and warranties is included in other liabilities on the accompanying consolidated balance sheets as of December 31, 2025.

Redeemable Non-Controlling Interest

Pursuant to the operating agreement for our cross-collateralized mezzanine lending investment, third party investors in this entity have the ability to sell their ownership interests to us, at their election once a year subject to annual minimum and maximum amount limitations, and we are obligated to purchase, subject to certain conditions, such interests for cash. See Note 7 to our consolidated financial statements included in this report for further discussion of redeemable non-controlling interest.

Summary of Material Contractual Obligations

The Company had the following material contractual obligations at December 31, 2025 (dollar amounts in thousands):

Less than 1 year

1 to 3 years

4 to 5 years

More than 5 years

Total

Repurchase agreements (1)

$

6,792,542 

$

— 

$

— 

$

— 

$

6,792,542 

Subordinated debentures (1)

3,696 

7,403 

7,392 

61,684 

80,175 

Senior unsecured notes (1)

127,234 

48,719 

289,521 

— 

465,474 

Total contractual obligations (2)

$

6,923,472 

$

56,122 

$

296,913 

$

61,684 

$

7,338,191 

(1)Amounts include projected interest payments during the period. Projected interest payments are based on interest rates in effect and outstanding balances as of December 31, 2025.

(2)We exclude our CDOs from the contractual obligations disclosed in the table above as this debt is non-recourse and not cross-collateralized and, therefore, must be satisfied exclusively from the proceeds of the residential loans and non-Agency RMBS held in securitization trusts. See Note 14 in the Notes to Consolidated Financial Statements for further information regarding our CDOs. We also exclude mortgages payable on real estate as they are non-recourse debt for which we have no obligation for repayment. See Note 15 in the Notes to Consolidated Financial Statements for further information regarding our mortgages payable on real estate.

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In addition, pursuant to the operating agreement for our cross-collateralized mezzanine lending investment, subject to certain conditions, third party investors in this entity have the ability to sell their ownership interests to us, at their election, and we are obligated to purchase such interests for cash.

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