What changed in this filing

/stocks — the workspaceLOADING

Item 7. Management’s Discussion and Analysis

2026-02-20 compared with 2025-02-21 · 772 added, 580 removed, 955 unchanged (59% of the section changed)

1 unchanged sentence

We are an internally-managed REIT for U.S.

federal income tax purposes, in the business of acquiring, investing in, financing and managing primarily mortgage-related single-family and multi-family residential assets.

Our objective is to deliver long-term stable distributions to our stockholders over changing economic conditions through a combination of net interest spread and capital gains from a diversified investment portfolio.

Our investment portfolio includes credit sensitive single-family and multi-family assets, as well as more traditional types of fixed-income investments that provide coupon income, such as Agency RMBS.

Reverse Stock Split

On March 9, 2023, we effected a one-for-four reverse stock split of our common stock (the “Reverse Stock Split”).

Accordingly, all references made to common share or per common share amounts in the accompanying consolidated financial statements and applicable disclosures have been retroactively adjusted to reflect the effects of the Reverse Stock Split.

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

Beginning in the second quarter of 2023, after significantly curtailing our investment activity and pipeline in 2022 in anticipation of a recession to conserve capital, preserve liquidity and limit what we believed was material credit risk from investments underwritten to peak real estate valuations in 2022, we began stabilizing our investment portfolio holdings through greater investment activity.

Since that time, we have focused, in large part, on acquiring assets with less price sensitivity to credit deterioration that could expand our interest income levels, like Agency RMBS.

We believe that Agency RMBS is a compelling asset class to invest in over the near term, as the sector is trading at attractive spread levels resulting from volatility in interest rates.

Recognizing that a recession call was premature, but still concerned about market liquidity due to, among other things, growing commercial real estate risks, we also remained selective in adding credit-related assets in our portfolio.

Specifically, we have targeted low duration, high-coupon business purpose loans while remaining selective on credit profile and worked to optimize financing of the loans we acquire.

During this time, we continued to drive higher business purpose loan acquisition volumes through ongoing partnerships with numerous originators.

Over the course of the past seven quarters, we have experienced solid momentum in our portfolio acquisition activities and increased adjusted interest income, a supplemental non-GAAP financial measure, by more than 60% year-over-year.

On a net basis, our investment portfolio increased by approximately $3.6 billion between December 31, 2022 and December 31, 2024, with repayments received from our short-duration business purpose loans, opportunistic sales of residential loans and investment securities, redemptions of our Mezzanine Lending investments, return of capital from our joint venture equity investments and impairments offsetting some of our investment activity.

In September 2022, we announced that our Board of Directors approved a strategic repositioning of our business through the opportunistic disposition over time of our joint venture equity investments in multi-family properties and reallocation of the returned capital from such investments to our targeted assets.

In 2023, joint venture entities in which we held a common equity interest sold five multi-family properties, representing total net equity investments of $43.2 million and recognizing a net gain attributable to the Company totaling $1.7 million.

Throughout most of 2023 and continuing into 2024, certain of the multi-family properties held by our joint venture equity investments experienced declines in estimated fair value primarily due to widening cap rates and lower net operating income driven, in large part, by higher interest and operating expenses at the properties which resulted in significant impairment losses.

We exited ten additional joint venture equity investments in multi-family properties in 2024, received net proceeds of $23.0 million and realized $14.3 million of net gains attributable to us.

As of December 31, 2024, we have reduced exposure in this disposal group of multi-family investments to $19.5 million over two multi-family properties.

We anticipate allocating less capital to multi-family investments going forward.

We intend to focus on our core portfolio strengths of single-family and multi-family residential assets, which we believe will deliver better risk-adjusted returns over time.

Our targeted investments include (i) residential loans, including business purpose loans, (ii) Agency RMBS, (iii) non-Agency RMBS, (iv) structured multi-family property investments such as preferred equity in, and mezzanine loans to, owners of multi-family properties and (v) certain other mortgage-, residential housing- and credit-related assets and 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, securities issued by newly originated securitizations, including credit sensitive securities from these securitizations, ABS and debt or equity investments in alternative assets or businesses.

As of December 31, 2024, the Company’s Recourse Leverage Ratio and Portfolio Recourse Leverage Ratio (as defined in footnotes 4 and 5 to the table under "— Capital Allocation") increased to 3.0x and 2.9x, respectively, from 1.6x and 1.5x, respectively, as of December 31, 2023, primarily due to the financing of highly liquid U.S.

Treasury securities and Agency RMBS.

As of December 31, 2024, 62% of our debt, excluding mortgages payable on real estate and Consolidated SLST CDOs, is subject to mark-to-market margin calls, with 44% of that debt collateralized by Agency RMBS, 10% collateralized by U.S.

Treasury securities and 8% collateralized by residential credit assets.

The remaining 38% has no exposure to collateral repricing by our counterparties.

Although we expect our leverage 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.

We believe that this will allow us to better manage our liquidity risk and better insulate our business from extreme market dislocations.

To this end, we completed a non-Agency RMBS re-securitization and five new, non-recourse securitizations of residential loans and redeemed two existing residential loan securitizations during the year ended December 31, 2024.

We also completed the issuance of $60.0 million of our 9.125% Senior Notes due 2029 in an underwritten public offering in the second quarter of 2024.

We received $57.5 million in net proceeds from the issuance and utilized the proceeds to purchase Agency RMBS.

In January 2025, we completed the issuance of $82.5 million of our 9.125% Senior Notes due 2030 in an underwritten public offering, receiving $79.3 million in net proceeds which were also used to purchase Agency RMBS.

In February 2025, we completed a new securitization of residential loans resulting in approximately $74.2 million of net proceeds to us after deducting expenses associated with the transaction and redeemed a residential loan securitization with an outstanding balance of approximatel y $54.4 million a t the time of redemption.

We expect to remain selective in acquiring single-family and multi-family residential credit assets and remain committed to prudently managing our liabilities.

Our investment and capital allocation decisions depend on prevailing market conditions, among other factors, and may change over time in response to opportunities available in different economic and capital market environments.

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.

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 s trategic 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.

Historical Financial Information

12 unchanged sentences

(12,417) (42,841) (31,302) (113,579) (17,583)

Other (loss) income

Other income (loss)

123,859 (42,236) (39,431) (262,169) 156,511

3 unchanged sentences

28,011 30,688 23,952 40,888 26,668

Debt issuance costs

Loan origination costs

8,101 — — — —

Net (loss) income attributable to Company's common stockholders (103,785) (90,035) (340,577) 144,176 (329,696)

Basic (loss) earnings per common share $ (1.14) $ (0.99) $ (3.61) $ 1.52 $ (3.55)

Diluted (loss) earnings per common share $ (1.14) $ (0.99) $ (3.61) $ 1.51 $ (3.55)

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

4 unchanged sentences

2025 2024 2023 2022 2021

Residential loans $ 3,841,738 $ 3,084,303 $ 3,525,080 $ 3,575,601 $ 3,049,166

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

2 unchanged sentences

Assets of disposal group held for sale 1,256 118,613 426,017 1,151,784 —

22,396 — — — —

Total assets (1)

12,638,847 9,217,282 7,401,328 6,240,745 5,658,301

Repurchase agreements 4,012,225 2,471,113 737,023 554,259 405,531

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

18 unchanged sentences

Liabilities $ 3,881,273 $ 3,477,211 $ 3,076,818 $ 3,403,257 $ 2,235,665

Portfolio Update

During the year ended December 31, 2024, we continued to expand our investment securities and residential loan portfolios.

Our investment activity was offset primarily by prepayments, redemptions, distributions and/or sales.

The following table presents the activity for our investment portfolio for the year ended December 31, 2024 (dollar amounts in thousands):

December 31, 2023 Acquisitions (1)

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 (3)(4)

Sales Transfers/Initial Consolidation (3)

Fair Value Changes and Other (4)

December 31, 2025

Residential loans $ 2,329,443 $ 1,892,892 $ (1,102,231) $ (162,883) $ — $ (81,155) $ 2,876,066

Investment securities

Agency RMBS 1,989,324 1,500,039 (295,325) — — (57,226) 3,136,812

Agency RMBS and TBAs (5)

$ 3,136,812 $ 4,118,518 $ (656,741) $ (91,791) $ — $ 126,678 $ 6,633,476

Non-Agency RMBS

1 unchanged sentence

Treasury securities 622,045 274,209 — (658,763) — 8,222 245,713

Total investment securities available for sale 2,013,817 2,210,934 (296,611) (5,284) — (94,312) 3,828,544

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)

2 unchanged sentences

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

4 unchanged sentences

Single-family rental properties 142,246 1,488 — (7,993) — (6,900) 128,841

Mortgage servicing rights

21,003 — — — 3,546 (3,656) 20,893

Total investment portfolio $ 5,143,236 $ 4,134,898 $ (1,496,403) $ (169,944) $ — $ (225,022) $ 7,386,765

(1) Includes draws funded for business purpose bridge loans and existing equity investments and capitalized costs for single-family rental properties.

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) In September 2022, the Company announced a repositioning of 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 assets and liabilities related to certain joint venture equity investments in multi-family properties are included in assets and liabilities of disposal group held for sale on the accompanying consolidated balance sheets as of December 31, 2024 and 2023.

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.

(4) Includes in-kind distribution of mortgage servicing rights received from the Company's equity investment in an entity that originates residential loans.

(5) 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, transfers within investment categories and net loss from real estate attributable to the Company.

(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.

5 unchanged sentences

Collateralized debt obligations, at fair value (1,006,919) (811,591)

Consolidated SLST investment securities owned by NYMT $ 148,508 $ 157,154

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.

Current Market Conditions and Commentar y

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 assets in the marketplace, 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, 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 modest positive performance in the fourth quarter of 2024 and strong positive performance for the full year 2024, spurred in part by economic growth and the Federal Reserve’s first cuts to the target range for the federal funds rate in approximately four and a half years.

Mortgage-related markets were challenged in 2024 as borrowers remained sensitive to higher interest rates and origination volumes were down by some measures as compared to 2023, among other considerations.

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.

However, interest rate and monetary policy uncertainty, mixed inflation data and geopolitical instability have cautioned some economic outlooks.

We anticipate that due to uncertainty related to inflation, interest rates, monetary policy, the U.S.

debt limit and the implementation of the new U.S.

presidential administration’s policies, markets and the pricing for many of our assets will continue to experience volatility in 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:

Financial and Economic Data .

economy grew modestly in 2024 with real gross domestic product (“GDP”) increasing by 2.8% for full year 2024, as compared to the GDP growth of 2.9% recorded for full year 2023.

GDP grew at a 2.3% annualized rate in the fourth quarter of 2024, as compared to the annualized 3.1% GDP growth in the third quarter of 2024, annualized 3.0% GDP growth in the second quarter of 2024 and annualized 1.6% GDP growth in the first quarter of 2024.

The fourth quarter 2024 GDP increase marks eleven straight quarters of GDP growth.

While GDP grew in 2024, inflation remains persistently above the Federal Reserve’s target of two percent, and job growth remains robust, 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 may limit or undermine business activity and the potential for future GDP growth, which could negatively impact the value of credit investments.

After moderating in the first half of 2024, the U.S.

labor market tightened during the third quarter of 2024 and remained tight in the fourth quarter of 2024 in contrast to many market commentators’ expectations.

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.

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 was 4.1% at the end of December 2024, finishing flat to the unemployment rate of 4.1% as of the end of September 2024 and up 30 basis points from the unemployment rate of 3.8% as of the end of December 2023.

The number of unemployed persons increased by 0.6 million year-over-year to 6.9 million as of December 2024.

There continues to be a wide disparity between the number of available job openings, 8.1 million as of the end of November 2024, and the number of unemployed persons, resulting in a competitive labor market and rising wages.

As of December 2024, average hourly earnings for all employees on non-farm payrolls rose 3.9% year-over-year.

After raising 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 target for 14 months, the Federal Reserve cut the target range by 50 basis points in September 2024 (the first such cut since March 2020), 25 basis points in November 2024 and 25 basis points in December 2024.

In connection with its cuts to the target range for the federal funds rate, the Federal Reserve acknowledged that inflation has made progress toward the Federal Reserve’s target of two percent but remains somewhat elevated.

In considering 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.

Changing expectations with respect to the Federal Reserve’s actions regarding the target range for the federal funds rate after quarter end contributed to an uncertain interest rate environment.

Particularly, some market commentators have suggested that persistently elevated inflation and continued robust employment readings in recent months may mean that the Federal Reserve is likely to make fewer or smaller cuts to the target range for the federal funds rate in 2025.

Higher interest rates tend to put pressure on our investments, mortgage borrowers, tenants, our operating partners and economic growth generally.

The fears of an economic recession in the U.S.

that were prevalent in 2023 receded in connection with the consistent U.S.

GDP growth seen in 2024, although some economists and market commentators have expressed expectations for U.S.

GDP growth to slow in 2025.

The National Bureau of Economic Research defines a recession as “a significant decline in economic activity that is spread across the economy and that lasts more than a few months.” An economic recession or stagnating economic growth 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.

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.

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 CoreLogic Case-Shiller National Home Price NSA Indices for October 2024 showed that, on average, home prices increased 4.2% for the 20-City Composite over October 2023.

Additionally, according to the National Association of Realtors (“NAR”), existing home sales in November 2024 increased 4.8% month-over-month and 6.1% year-over-year.

NAR also reported that the median existing-home sales price for all housing types in November 2024 was $406,100, up 4.7% from $387,800 in November 2023.

According to data provided by the U.S.

Census Bureau and the U.S.

Department of Housing and Urban Development, privately-owned housing starts for single-family homes averaged a seasonally adjusted annual rate of 1,003,000 and 1,009,917 for the three and twelve months ended December 31, 2024, respectively, as compared to 948,500 for the year ended December 31, 2023.

Overall, existing home inventory for sale at the end of November 2024 amounted to 3.8 months of supply, down from 4.2 months of supply in October 2024 but up from 3.5 months of supply in November 2023, according to the NAR.

According to Freddie Mac, the weekly average 30-year fixed-rate mortgage was up 0.44% year-over-year to 7.04% as of January 16, 2025.

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 data provided by the U.S.

Census Bureau and the U.S.

Department of Housing and Urban Development, starts on multi-family homes containing five or more units averaged a seasonally adjusted annual rate of 355,667 and 336,583 for the three and twelve months ended December 31, 2024, respectively, as compared to 459,417 for the year ended December 31, 2023.

According to RealPage Analytics, rents for professionally managed apartments grew a modest 50 basis points in 2024 as a near-historic number of new apartment units were completed.

The CoStar Group notes that the majority of the weakest-performing geographic markets in 2024 from an asking rent growth perspective were located in the Southeast and Texas, where oversupply conditions remain challenging and where a significant amount of our multi-family investments are concentrated.

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.

The prior presidential administration issued statements and implemented policies aimed at establishing certain rights and protections for tenants and limiting the actions of real property owners and managers.

However, certain political commentators expect that the current administration will reverse or cease the implementation of such positions and policies.

Policies, regulations or laws implemented to establish tenant rights and protections and/or limit the actions of real property owners and managers could lead to increased costs, decreased revenue and reduced operational flexibility for multi-family and single-family rental properties, which could contribute to reduced cash flows from and/or valuation declines for multi-family and single-family rental properties, and in turn, many of the multi-family investments and single-family rentals that we own.

Credit Spreads.

Investment grade and high-yield credit spreads both tightened over the course of the fourth quarter of and full year 2024.

At the end of 2024, investment grade spreads tightened 10 basis points and 22 basis points as compared to the start of the fourth quarter of 2024 and the start of 2024, respectively.

At the end of 2024, high-yield credit spreads tightened 11 basis points and 47 basis points as compared to the start of the fourth quarter of 2024 and the start of 2024, respectively.

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.

For the first time since June 2022, the Treasury curve uninverted at the end of August 2024, marking the end of the longest inverted Treasury curve on record.

This normalization of the Treasury curve was driven in part by investors’ expectations of the Federal Reserve’s cuts to the target range for the federal funds rate.

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.

Further, a January 2025 survey of economists by the Wall Street Journal indicated that the respondents believed that the probability of a recession in the next twelve months is at 22%, the lowest probability indicated by the Wall Street Journal’s survey since January 2022.

On December 31, 2025, the spread between the 2-Year U.S.

Treasury yield and the 10-Year U.S.

Treasury yield closed at 33 basis points, as compared to a negative 35 basis point spread on December 29, 2023.

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.

5 unchanged sentences

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.

On June 1, 2022, the Federal Reserve shifted course and began shrinking its balance sheet by reducing its holdings of U.S.

Treasuries and Agency RMBS by $47.5 billion per month.

In September 2022, the Federal Reserve increased its efforts to reduce its balance sheet by doubling the amount of U.S.

Treasuries and Agency RMBS it rolls off its balance sheet to $95 billion each month.

On June 1, 2024, the Federal Reserve reduced from $60 billion to $25 billion the amount of U.S.

Treasuries it rolls off its balance sheet each month while continuing to reduce its holdings of Agency RMBS by $35 billion per month.

As of January 13, 2025, the Federal Reserve held about $6.8 trillion in assets.

Sales or reductions in the pace of purchasing of Agency RMBS by the Federal Reserve could create headwinds in the market for Agency RMBS where increased supply could drive prices lower and interest rates higher.

From March 2020 to March 2022, the Federal Reserve maintained a target range for the federal funds rate of 0% to 0.25% in view of the COVID-19 pandemic and to foster maximum employment and price stability.

Then, from March 2022 through July 2023, the Federal Reserve increased the federal funds rate eleven times to bring the target range for the federal funds rate to 5.25% to 5.50% where it remained until September 19, 2024 when the Federal Reserve implemented a 50 basis point cut to the target range.

When announcing the 50 basis point rate cut in September 2024, the Federal Reserve stated that inflation had made progress toward the Federal Reserve’s objective of achieving an inflation rate of two percent over the longer run and that, in light of this progress on inflation and considering the risks to the Federal Reserve’s second objective of achieving maximum employment, a cut to the target range was appropriate.

On each of November 8, 2024 and December 19, 2024, the Federal Reserve again cut the target range to the federal funds rate by 25 basis points, bringing the total cuts to the target range in 2024 to 100 basis points.

The Federal Reserve noted in its December 2024 statement that any future cuts to the target range for the federal funds rate will depend on a careful assessment of incoming data, the evolving outlook, and the balance of risks to its dual mandate of achieving maximum employment and an inflation rate of two percent.

As reflected on the “dot plot” included in the projection materials from the Federal Reserve’s December 2024 meeting, most Federal Reserve officials indicated that an additional 50 basis points in cuts to the target range for the federal funds rate by the end of 2025 would be appropriate.

However, recent economic data along with the Federal Reserve’s December 2024 statement emphasizing the consideration that will be given to evolving economic data has cautioned some market commentators’ expectations of the number and extent of further cuts to the target range for the federal funds rate in 2025.

Uncertainty exists regarding the U.S.

debt limit, which is the statutory maximum amount of money that the U.S.

government may borrow to meet its existing obligations.

government reached the debt limit in the middle of January 2025 and the U.S.

Treasury began taking “extraordinary measures” to keep the U.S.

from breaching its obligations.

Congress must approve any increases to or suspensions of the U.S.

debt limit is not increased or suspended before the effectiveness of such extraordinary measures is exhausted, which some estimate will be sometime around the middle of 2025, the U.S.

government may default on its obligations causing severe economic consequences.

A default of the U.S.

government on its obligations may also cause yields on U.S.

Treasuries, and interest rates broadly, to rise, among other things.

A weakened economy and/or higher interest rates may put pressure on the ability of our operating partners, 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.

In September 2008, the U.S.

Government placed Fannie Mae and Freddie Mac into the conservatorship of the FHFA in order to preserve and conserve their assets and property and restore them to a sound and solvent condition so they can continue to fulfill their statutory missions.

In President Trump’s first term, his administration sought to end the conservatorships of Fannie Mae and Freddie Mac, but so far into his second term, President Trump’s administration has not explicitly expressed its intentions with respect to the conservatorships.

However, many market and political commentators believe President Trump may seek to end the conservatorships of Fannie Mae and Freddie Mac.

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.

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.

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.

5 unchanged sentences

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” in this Annual Report on Form 10-K.

The scope and nature of the actions the Federal Reserve and 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 and the outlook for the U.S.

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.

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.

4 unchanged sentences

Year Ended December 31, 2025

Net loss attributable to Company's common stockholders $ (103,785)

Net loss attributable to Company's common stockholders per share (basic) $ (1.14)

Undepreciated loss (1)

Undepreciated loss per common share (1)

Comprehensive loss attributable to Company's common stockholders $ (103,781)

Comprehensive loss attributable to Company's common stockholders per share (basic) $ (1.14)

Net income attributable to Company's common stockholders

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

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

Earnings available for distribution per common share (1)

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

16 unchanged sentences

Investing Activities

• Purchased approximately $2.2 billion of investment securities, including $1.5 billion of Agency RMBS with an average coupon of 5.69%.

• Purchased approximately $1.9 billion of residential loans with an average gross coupon of 9.93% .

• Sold three multi-family apartment communities held by joint venture equity investments which generated a net gain attributable to the Company's common stockholders of approximately $12.3 million.

• Sold or distributed equity interests in joint venture equity investments that owned ten multi-family apartment communities which generated a gain on de-consolidation attributable to the Company's common stockholders of approximately $5.7 million.

• 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.

Financing Activities

• Completed five securitizations of residential loans and a re-securitization of our investment in certain subordinated securities issued by Consolidated SLST, resulting in approximately $1.3 billion in net proceeds to us after deducting expenses associated with the transactions.

We utilized a portion of the net proceeds to repay approximately $865.4 million on outstanding repurchase agreements related to residential loans and investment securities.

We also redeemed two residential loan securitizations with an outstanding balance of approximately $193.3 million at the time of redemption.

• Completed the issuance of $60.0 million of 9.125% Senior Notes due 2029 in an underwritten public offering at par, resulting in approximately $57.5 million in net proceeds to us after deducting the underwriters' discount and commissions and offering expenses.

• Repurchased 587,347 shares of common stock for approximately $3.5 million at an accretive average repurchase price of $5.95 per common share.

• 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

1 unchanged sentence

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 February 2025, we completed a new securitization of residential loans resulting in approximately $74.2 million of net proceeds to us after deducting expenses associated with the transaction and redeemed a residential loan securitization with an outstanding balance of approximatel y $54.4 million a t the time of redemption.

• On February 19, 2025, we announced that our Board of Directors approved extensions of our common stock repurchase program, under which $189.7 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.

• 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.

1 unchanged sentence

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, including senior unsecured notes and subordinated debentures, short-term and longer-term repurchase agreements and CDOs.

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 by investment category at December 31, 2024 and 2023, respectively (dollar amounts in thousands).

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

At December 31, 2025:

Single-Family Multi-Family Corporate/Other Total

Investment Portfolio

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)

Investment securities available for sale 3,206,499 — 622,045 3,828,544

Residential loans held for sale

— 80,707 — 80,707

Multi-family loans 55,476 — — 55,476

3 unchanged sentences

Equity investments in disposal group held for sale (2)

— 19,504 — 19,504

Single-family rental properties 128,841 — — 128,841

1 unchanged sentence

20,868 25 — 20,893

Total investment portfolio carrying value 6,399,895 331,680 660,763 7,392,338

Repurchase agreements (3,377,161) — (635,064) (4,012,225)

Total investments

10,506,099 214,043 — 10,720,142

Repurchase agreements and warehouse facilities

(6,557,825) (195,592) — (6,753,417)

Collateralized debt obligations

7 unchanged sentences

113,478 16,282 196,650 326,410

— 22,396 — 22,396

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

10 unchanged sentences

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 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.

(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:

Single-Family Multi-Family Corporate/Other Total

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)

Investment securities available for sale 2,013,817 — — 2,013,817

Multi-family loans 86,192 — 86,192

5 unchanged sentences

Single-family rental properties 142,246 — 142,246

Total investment portfolio carrying value 4,656,268 453,783 37,154 5,147,205

Mortgage servicing rights 21,003 — 21,003

Total investments

7,392,338 — 7,392,338

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)

14 unchanged sentences

(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 $149.7 million, Consolidated SLST CDOs amounting to $593.7 million, residential loan securitization CDOs amounting to $1.3 billion and mortgages payable on real estate , including mortgages payable on real estate of disposal group held for sale, totaling $1.2 billion as they are non-recourse debt.

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.

5 unchanged sentences

“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 loss for the years ended December 31, 2024 and 2023, respectively (dollar amounts in thousands, except per share data):

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,

2 unchanged sentences

Interest expense 452,647 317,425 135,222

Net interest income 83,855 66,526 17,329

Net loss from real estate

(42,841) (31,302) (11,539)

Total other loss

(42,236) (39,431) (2,805)

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)

Debt issuance costs

12,335 — 12,335

Loss from operations before income taxes

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 loss attributable to Company

(62,029) (48,665) (13,364)

Net income (loss) attributable to Company 149,048 (62,029) 211,077

Preferred stock dividends (47,942) (41,756) (6,186)

Gain on repurchase of preferred stock

Net loss attributable to Company's common stockholders

(103,785) (90,035) (13,750)

Basic loss per common share

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 loss per common share

Diluted earnings (loss) per common share

$ 1.10 $ (1.14) $ 2.24

1 unchanged sentence

Interest income increased in 2025 primarily due to increased investments in Agency RMBS and business purpose loans.

The increase in interest expense in 2024 was due primarily to an increase in financing obtained to fund investing activity through repurchase agreements and securitizations as well as issuance of the 9.125% Senior Notes due 2029.

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 .

Net Loss from Real Estate

10 unchanged sentences

Total expenses related to real estate (88,751) (175,480) 86,729

Net loss from real estate

$ (42,841) $ (31,302) $ (11,539)

The increase in net loss from real estate in 2024 was primarily attributable to a reduction in rental income as a result of the sale or de-consolidation, since December 31, 2023, of certain multi-family real estate assets owned by entities in which we had joint venture equity investments.

Expenses related to real estate decreased due to a decrease in interest expense on mortgages payable and a decrease in operating expenses due to the aforementioned sales or de-consolidation of multi-family real estate assets.

This decrease was partially offset by an increase in depreciation expense and amortization of lease intangibles as a result of the return of certain multi-family real estate assets owned by entities in which we have joint venture equity investments to held and used since December 2023.

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

8 unchanged sentences

$ (65,428) $ (29,351) $ (36,077)

Net realized losses related to our residential loan portfolio increased in 2024, primarily as a result of increased losses incurred on foreclosed properties and recognized on the sale of residential loans and a decrease in net realized gain from payoffs of residential loans.

We also recognized net realized losses of $1.2 million on write-downs of non-Agency RMBS in 2024 .

In 2023, we recognized net realized losses of $14.3 million related to investment securities primarily attributable to the sale of ABS, CMBS and non-Agency RMBS.

Unrealized (Losses) Gains, Net

The following table presents the components of unrealized (losses) gains, net recognized for the years ended December 31, 2024 and 2023, respectively (dollar amounts in thousands):

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

Consolidated SLST 2,902 (10,016) 12,918

CDOs at fair value

Mezzanine lending investments accounted for as loans

581 (4,717) 5,298

Senior unsecured notes at fair value

(3,541) 616 (4,157)

Preferred equity and mezzanine loan investments (4,717) 1,079 (5,796)

Investment securities

CDOs and senior unsecured notes

(26,141) (1,794) (24,347)

Mortgage servicing rights

Total unrealized (losses) gains, net

Total unrealized gains (losses), net

$ 217,395 $ (90,530) $ 307,925

We recognized net unrealized losses in 2024 primarily due to an increase in interest rates, which impacted the pricing of our investment securities and residential loans.

The net unrealized losses on our investment securities were more than offset by unrealized gains on our derivative instruments, as discussed below.

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.

We recognized net unrealized gains in 2023, primarily due to credit spread tightening that impacted the pricing of our residential loans.

Net unrealized gains on our investment securities for the year ended December 31, 2023 included unrealized gains recognized on Agency RMBS purchased in 2023.

Gains (Losses) on Derivative Instruments, Net

The following table presents the components of gains (losses) on derivative investments, net for the years ended December 31, 2024 and 2023, respectively (dollar amounts in thousands):

(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 gains (losses) on derivative instruments

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.

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

Total gains (losses) on derivative instruments, net

Gains on residential loans held for sale, net

14,443 — 14,443

We recognized $96.0 million in net gains on derivative instruments in 2024, 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.

We recognized $26.4 million in net losses on derivative instruments in 2023, primarily due to decreases in fair value of interest rate swaps entered into during the year and lower valuations of interest rate caps.

This was offset by gains realized upon termination of interest rate cap contracts in connection with sales of multi-family properties and repayment of related mortgages payable in our joint venture equity investments in disposal group held for sale.

Income from Equity Investments

The following table presents the components of income from equity investments for the years ended December 31, 2024 and 2023, respectively (dollar amounts in thousands):

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 preferred equity investments accounted for as equity $ 12,775 $ 19,308 $ (6,533)

Unrealized (losses) gains, net on preferred equity investments accounted for as equity

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

Income from entity that originates residential loans

(Loss) income from investment in Constructive

(1,554) 12,481 (14,035)

Total income from equity investments $ 16,011 $ 17,785 $ (1,774)

The decrease in income from equity investments in 2024 was primarily due to 1) decreases in preferred return on preferred equity investments accounted for as equity as a result of redemptions that have occurred since December 31, 2023 and 2) unrealized losses recognized on preferred equity investments accounted for as equity and unconsolidated joint venture equity investments in multi-family properties as a result of property performance and wider cap rates during the current period.

The decrease in total income from equity investments was partially offset by an increase in income from an entity that originates residential loans due to increased origination volume and profitability in 2024.

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

3 unchanged sentences

Impairment of real estate $ (9,767) $ (48,875) $ 39,108

In 2024, we recognized impairment losses on certain multi-family real estate assets due to lower valuations driven by a decrease in net operating income estimates and wider cap rates.

We also 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 in 2024.

The decrease in impairment of real estate in 2024 can be attributed to slowing cap rate widening as compared to 2023 as well as the sale or de-consolidation of certain multi-family real estate assets since December 31, 2023.

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.

Loss on Reclassification of Disposal Group

5 unchanged sentences

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.

In 2023, nine joint venture equity investments were reclassified from disposal group held for sale, resulting in a loss on reclassification of disposal group of approximately $16.2 million.

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

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

1 unchanged sentence

2025 2024 $ Change

Servicing fee income

$ 8,036 $ 906 $ 7,130

Gain on sale of real estate

2 unchanged sentences

— 6,115 (6,115)

Servicing fee income

Preferred equity and mezzanine loan premiums resulting from early redemption

196 390 (194)

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

(884) (2,864) 1,980

Provision for uncollectible receivables

(3,207) — (3,207)

Miscellaneous income

Miscellaneous

434 (2,843) 3,277

Total other income $ 16,509 $ 29,149 $ (12,640)

The net increase in other income in 2024 is primarily due to gains recognized on the sales of both certain multi-family properties and our membership interests in consolidated joint venture equity investments.

The following tables present the components of general, administrative and portfolio operating expenses for the years ended December 31, 2024 and 2023, respectively (dollar amounts in thousands):

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.

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,

3 unchanged sentences

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 decrease in general and administrative expenses in 2024 is primarily related to decreases in salary and stock compensation expenses, partially offset by increases in legal and tax advisory fees.

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,

1 unchanged sentence

Portfolio operating expenses $ 28,011 $ 30,688 $ (2,677)

The increase in portfolio operating expenses in 2024 is primarily related to the growth in our residential loan portfolio as well as an increase in expenses related to our non-performing residential loan portfolio..

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

2 unchanged sentences

7,293 2,480 4,813

Total debt issuance costs

Equity transaction costs

Total financing transaction costs

$ 14,173 $ 12,335 $ 1,838

We elected the fair value option with respect to CDOs and senior unsecured notes issued by the Company after January 1, 2024.

Accordingly, costs associated with the issuance of debt subject to the fair value election are expensed as they are incurred and are included in debt issuance costs i n 2024.

Comprehensive Loss

The main components of comprehensive loss for the years ended December 31, 2024 and 2023, respectively, are detailed in the following table (dollar amounts in thousands):

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

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 LOSS ATTRIBUTABLE TO COMPANY'S COMMON STOCKHOLDERS

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

$ 101,106 $ (103,785) $ 204,891

OTHER COMPREHENSIVE INCOME

Increase in fair value of available for sale securities

Non-Agency RMBS — 144 (144)

Total — 144 (144)

Reclassification adjustment for net loss included in net loss

4 1,822 (1,818)

TOTAL OTHER COMPREHENSIVE INCOME

4 1,966 (1,962)

COMPREHENSIVE LOSS ATTRIBUTABLE TO COMPANY'S COMMON STOCKHOLDERS

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

$ 101,106 $ (103,781) $ 204,887

2 unchanged sentences

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

Corporate/Other

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.

Analysis of Changes in GAAP Book Value

4 unchanged sentences

Common stock issuance, net (2)

Preferred stock issuance, net 5,027

Preferred stock issuance liquidation preference (5,532)

Common stock repurchases

3 unchanged sentences

Dividends and dividend equivalents declared (79,078) (0.88)

Net change in accumulated other comprehensive loss:

Investment securities available for sale (3)

Net loss attributable to Company's common stockholders (103,785) (1.14)

Net income attributable to Company's common stockholders

Ending Balance $ 867,280 90,304 $ 9.60

1 unchanged sentence

(2) Includes amortization of stock based compensation.

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

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):

5 unchanged sentences

(3,493) (587)

Preferred stock repurchases

Balance after share activity 1,028,077 90,575 11.35

8 unchanged sentences

(2) Includes amortization of stock based compensation.

(3) The net increase relates to the reclassification of unrealized losses to net loss in relation to the sale of investment securities and unrealized gains on our investment securities resulting from changes in pricing.

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

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, undepreciated loss and adjusted book value per common share.

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.

3 unchanged sentences

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 investment portfolio of residential loans, 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”).

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.

1 unchanged sentence

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,

• 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,

3 unchanged sentences

• 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 the net interest component of interest rate swaps utilized to hedge the variable cash flows associated with our variable-rate borrowings, which is included in gains (losses) on derivative instruments, net in the Company's consolidated statements of operations.

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).

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.

2 unchanged sentences

Year Ended December 31, 2025

Single-Family (8)

Family Corporate/Other Total

Single-Family Credit (8)

Family Credit

Corporate/Other Total

Adjusted Interest Income (1) (2)

15 unchanged sentences

Year Ended December 31, 2024

Single-Family (8)

Family Corporate/Other Total

Single-Family Credit (8)

Family Credit Corporate/Other Total

Adjusted Interest Income (1) (2)

15 unchanged sentences

Year Ended December 31, 2023

Single-Family (8)

Corporate/Other Total

Single-Family Credit (8)

Family Credit Corporate/Other Total

Adjusted Interest Income (1) (2)

16 unchanged sentences

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

(3) Average Interest Earning Assets for the respective periods include residential loans, multi-family loans and investment securities and exclude all Consolidated SLST assets other than those securities owned 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, residential loan securitization and non-Agency RMBS re-securitization CDOs, Convertible Notes, senior unsecured notes and subordinated debentures 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.

(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.

6 unchanged sentences

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.

Our adjusted net interest income increased in 2024 as compared to the prior year.

1 unchanged sentence

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.

Our adjusted net interest income decreased in 2023 as compared to the prior year.

While adjusted interest income remained relatively flat, our adjusted interest expense increased in 2023, primarily due to additional repurchase agreement and securitization financings and an increase in the cost of financing due to base interest rate movements partially offset by the benefit of our interest rate swaps.

Net interest spread decreased in 2023 due to a combination of a decrease in yield on Average Interest Earning Assets and an increase in our cost of financing.

The decrease in our yield on Average Interest Earning Assets was primarily due to 1) portfolio run-off of higher yielding business purpose loans, 2) an increase in business purpose loans held in non-accrual status, 3) the sale of certain higher yielding ABS in the second half of 2022 and 4) investment in lower yielding Agency RMBS in 2023.

The previously described increase in cost of financing combined with the decrease in yield to reduce net interest spread in 2023.

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):

Years Ended December 31,

For the Year Ended December 31, 2025

Single-Family Credit Multi-Family Credit Corporate/Other Total

GAAP interest income

$ 306,128 $ 276,976 $ 8,642 $ 10,202 $ 601,948

Single-Family Multi-Family Corporate/Other Total Single-Family Multi-Family Corporate/Other Total Single-Family Multi-Family Corporate/Other Total

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

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

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:

9 unchanged sentences

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

Undepreciated Loss

Undepreciated loss is a supplemental non-GAAP financial measure defined as GAAP net 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.

By excluding these non-cash adjustments from our operating results, we believe that the presentation of undepreciated loss provides a consistent measure of our operating performance and useful information to investors to evaluate the effective net return on our portfolio.

In addition, we believe that presenting undepreciated loss enables our investors to measure, evaluate, and compare our operating performance to that of our peers.

A reconciliation of net loss attributable to Company's common stockholders to undepreciated loss for the years ended December 31, 2024, 2023 and 2022, respectively, is presented below (amounts in thousands, except per share data).

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.

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

Net loss attributable to Company's common stockholders

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

$ 101,106 $ (103,785) $ (90,035)

Depreciation expense on operating real estate 12,026 8,714 28,916

Amortization of lease intangibles related to operating real estate — — 50,083

Undepreciated loss

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)

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

Undepreciated loss per common share

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 investment portfolio to fair value.

Our rental property portfolio includes fee simple interests in single-family rental homes and joint venture equity interests 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 and joint venture equity investments 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 certain of the Consolidated Real Estate VIEs, we record redeemable non-controlling interests as mezzanine equity on our consolidated balance sheets.

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 the applicable Consolidated Real Estate VIEs.

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 joint venture equity investment at its undepreciated basis.

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 the assets in our investment portfolio, certain CDOs issued by our residential loan securitizations, certain senior unsecured notes and subordinated debentures that finance our investment portfolio assets are carried at amortized cost 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.

24 unchanged sentences

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, 2024 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, liabilities and accumulated other comprehensive loss at the date of the consolidated financial statements and the reported amounts of income, expenses and other comprehensive income (loss) during the periods presented.

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.

20 unchanged sentences

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.

Revenue Recognition

Investment Securities Issued by Consolidated SLST

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.

16 unchanged sentences

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 joint venture equity investments that own multi-family apartment communities, which the Company determined to be VIEs and for which the Company is 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 joint ventures' membership interests.

The Company accounted for the initial consolidation of the joint venture investments 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.

The Company records its initial investments in income-producing real estate at fair value.

The purchase price of acquired properties is apportioned to the tangible and identified intangible assets and liabilities acquired at their respective estimated fair values.

In making estimates of fair values for purposes of allocating purchase price, the Company utilizes a number of sources, including independent appraisals that may be obtained in connection with the acquisition or financing of the respective real estate, its own analysis of recently-acquired and existing comparable properties, property financial results, and other market data.

The Company also considers information obtained about the real estate as a result of its due diligence, including marketing and leasing activities, in estimating the fair value of the tangible and intangible assets acquired.

The Company considers the value of acquired in-place leases and utilizes an amortization period that is the average remaining term of the acquired leases.

The estimation of fair value for purposes of allocating the purchase price of investments in real estate requires significant judgment based on the available sources.

The allocation may significantly impact the carrying value of intangible assets and liabilities consolidated as asset acquisitions, as well as the amount and timing of depreciation and amortization expense recognized in relation to these assets and liabilities over time.

Real estate held for sale (including real estate in disposal group held for sale) is recorded at the lower of the net carrying amount of the assets or the estimated net fair value.

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.

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 Consolidated VIEs have the ability to sell their ownership interests to the Company, at their election.

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 applicable Consolidated VIEs that are allocatable to the redeemable non-controlling interest.

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.

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.

3 unchanged sentences

As of December 31, 2025, we had approximately $12.6 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.

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 $757.8 million of assets held in Consolidated SLST and $1.5 billion 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 “Portfolio Update” above.

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.

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)

Available for Sale (“AFS”)

$ 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 %

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 %

Treasury securities

245,309 246,298 1,652 (2,237) 245,713 4.63 % 4.62 %

$ 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 %

December 31, 2024

Unrealized Weighted Average

Investment Securities Current Par Value Amortized Cost Gains Losses Fair Value Coupon (1)

Available for Sale (“AFS”)

$ 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 %

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

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 %

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):

December 31, 2025

Weighted Average

Current Par Value Fair Value CPR (1)

Loan Age (Months)

30-Year Fixed rate

$ 49,917 $ 48,850 3.9 % 30

1,747,765 1,746,572 5.6 % 13

3,286,803 3,342,270 14.5 % 19

993,027 1,022,374 26.2 % 27

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

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)

30-Year Fixed rate

$ 52,192 $ 49,201 0.5 % 18

154,590 149,462 6.7 % 19

1,178,435 1,165,078 10.3 % 18

1,234,506 1,243,222 14.9 % 15

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

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).

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.

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.

Residential Loans

The following table presents the Company’s residential loans, which include acquired residential loans held by the Company and residential loans held in Consolidated SLST, as of December 31, 2024 and 2023, respectively (dollar amounts in thousands):

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 residential loans $ 2,876,066 $ 2,329,443

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 Residential Loans

The Company’s acquired residential loans, including performing, re-performing, and non-performing residential loans and business purpose loans, 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 (losses) gains, net on the Company’s consolidated statements of operations.

The following table details our acquired residential loans by strategy at December 31, 2024 and 2023, respectively (dollar amounts in thousands):

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

1 unchanged sentence

Weighted Average Coupon

Re-performing residential loan strategy 3,484 $ 461,101 $ 435,674 636 54% 5.2%

Performing residential loan strategy 2,630 610,203 525,267 740 58% 4.2%

Business purpose bridge loan strategy 2,321 1,176,555 1,157,085 742 65% 10.5%

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

2 unchanged sentences

Weighted Average Coupon

Re-performing residential loan strategy 4,687 $ 626,316 $ 601,239 630 60% 5.1%

Performing residential loan strategy 2,803 642,320 548,736 717 62% 4.0%

Business purpose bridge loan strategy 1,720 919,990 896,988 735 65% 9.6%

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 unchanged sentence

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.

Characteristics of Our Acquired Residential Loans:

Characteristics of Our Acquired and Originated Residential Loans:

Loan to Value at Purchase (1)

39 unchanged sentences

22.2 % 42.6 %

10.5 % 21.4 %

Total 100.0 % 100.0 %

As of December 31, 2024 and 2023, the Company had an investment in an entity that originates residential loans.

The Company purchased $307.8 million, $80.8 million and $260.6 million of residential loans from the entity during the years ended December 31, 2024, 2023 and 2022, respectively.

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

1 unchanged sentence

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, 2024, the Company invested in a subordinated security issued by a Freddie Mac-sponsored residential loan securitization, resulting in the initial consolidation of $285.1 million of residential loans and $275.2 million of CDOs in the VIE.

Our investment in Consolidated SLST as of December 31, 2024 and 2023 was limited to the RMBS comprised of first loss subordinated securities and IOs issued by the respective securitizations with an aggregate net carrying value of $148.5 million and $157.2 million, respectively.

For more information on investment securities held by the Company within Consolidated SLST, refer to "Investment Securities" section below.

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.

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):

26 unchanged sentences

10.7 % 10.8 %

New Jersey 6.8 % 7.6 %

Illinois 6.3 % 7.2 %

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

Weighted average LTV

Weighted average coupon

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

$ 107,174 12.8 %

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

Total $ 840,069 100.0 %

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

Repurchase Agreements

As of December 31, 2024, the Company had repurchase agreements with six third-party financial institutions to fund the purchase of residential loans, real estate owned and single-family rental properties.

As of December 31, 2024, the Company's only repurchase agreement exposure where the amount of collateral at risk was in excess of 5% of the Company's stockholders’ equity was to Atlas SP at 6.08%.

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 associated assets pledged as collateral at December 31, 2024 and 2023, respectively (dollar amounts in thousands):

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 (1)

Repurchase Agreements and Warehouse Facilities

Net Deferred Finance Costs (1)

Carrying Value of Repurchase Agreements Carrying Value of Assets Pledged (3)

Carrying Value of Repurchase Agreements and Warehouse Facilities Carrying Value of Assets Pledged (2)

Weighted Average Rate Weighted Average Months to Maturity (3)

1 unchanged sentence

December 31, 2024 $ 2,775,000 $ 496,410 $ (796) $ 495,614 $ 659,183 6.70 % 9.64

(1) Includes non-mark-to-market repurchase agreements with an aggregate outstanding balance of $15.0 million, a weighted average rate of 7.09%, and weighted average months to maturity of 8 months as of December 31, 2024.

Includes non-mark-to-market repurchase agreements with an aggregate outstanding balance of $179.1 million, a weighted average rate of 8.19%, and weighted average months to maturity of 14 months as of December 31, 2023.

(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.

Includes residential loans with an aggregate fair value of $658.3 million and single-family rental properties with a net carrying value of $146.7 million as of December 31, 2023.

(4) The Company expects to roll outstanding amounts under these repurchase agreements into new repurchase agreements or other financings, or to repay outstanding amounts, prior to or at maturity.

The following table details the quarterly average balance, ending balance and maximum balance at any month-end during each quarter in 2024, 2023 and 2022 for our repurchase agreements secured by residential loans (dollar amounts in thousands):

(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.

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

32 unchanged sentences

$ 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

2 unchanged sentences

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 is primarily determined by the rate of principal prepayments on the assets of the issuing entity.

(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.

2 unchanged sentences

See Note 7 for unrealized gains or losses recognized on CDOs issued by Consolidated SLST.

For the year ended December 31, 2024, the Company recognized $1.3 million in net unrealized losses on residential loan securitizations at fair value, which is included in unrealized (losses) gains, net on the accompanying consolidated statements of operations.

(5) 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 $285.1 million of residential loans and $275.2 million of CDOs in the VIE.

Investment Securities

At December 31, 2024, 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, 2024, 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, 2024 as compared to December 31, 2023 is primarily due to purchases of Agency RMBS, non-Agency RMBS and U.S.

Treasury securities during the period partially offset by a decrease in the fair value of a number of our investment securities.

The following tables summarize our investment securities portfolio as of December 31, 2024 and 2023, respectively (dollar amounts in thousands):

December 31, 2024

Unrealized Weighted Average

Investment Securities Current Par Value Amortized Cost Gains Losses Fair Value Coupon (1)

Outstanding Repurchase Agreements

Available for Sale (“AFS”)

$ 2,943,583 $ 2,949,038 $ 11,733 $ (21,711) $ 2,939,060 5.84 % 5.73 % $ 2,662,475

Adjustable rate

131,817 130,119 285 (822) 129,582 5.47 % 5.40 % 124,096

1,169,330 83,878 843 (16,551) 68,170 0.89 % 11.82 % 44,354

Total Agency RMBS

4,244,730 3,163,035 12,861 (39,084) 3,136,812 4.24 % 5.88 % 2,830,925

Non-Agency RMBS

Senior 42,214 42,214 160 (9) 42,365 8.14 % 8.10 % 30,300

Subordinated 11,509 10,869 — (2,605) 8,264 5.19 % 5.95 % 2,940

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 % 33,240

Treasury securities

652,792 657,659 — (35,614) 622,045 4.16 % 4.13 % 635,064

Total - AFS $ 5,297,827 $ 3,886,897 $ 18,959 $ (77,312) $ 3,828,544 4.04 % 5.98 % $ 3,499,229

Consolidated SLST

Non-Agency RMBS

Subordinated $ 242,088 $ 181,716 $ 4,945 $ (52,134) $ 134,527 4.60 % 6.02 % $ 17,382

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 % 17,382

Total - Consolidated SLST $ 371,566 $ 196,350 $ 4,945 $ (52,787) $ 148,508 4.21 % 6.23 % $ 17,382

Total Investment Securities $ 5,669,393 $ 4,083,247 $ 23,904 $ (130,099) $ 3,977,052 4.05 % 5.94 % $ 3,516,611

December 31, 2023

Unrealized Weighted Average

Investment Securities Current Par Value Amortized Cost Gains Losses Fair Value Coupon (1)

Outstanding Repurchase Agreements (3)

Available for Sale (“AFS”)

$ 1,756,343 $ 1,761,138 $ 21,581 $ (1,829) $ 1,780,890 5.74 % 5.64 % $ 1,602,695

Adjustable rate 149,052 147,460 1,741 — 149,201 5.48 % 5.35 % 137,084

1,139,828 52,623 6,813 (203) 59,233 0.76 % 14.81 % 31,657

Total Agency RMBS 3,045,223 1,961,221 30,135 (2,032) 1,989,324 4.34 % 5.79 % 1,771,436

Non-Agency RMBS

35 35 — (4) 31 3.65 % 3.60 % —

Subordinated 8,164 7,526 — (4,281) 3,245 4.61 % 7.39 % —

IO 375,563 14,571 6,646 — 21,217 1.63 % 27.42 % —

Total Non-Agency RMBS 383,762 22,132 6,646 (4,285) 24,493 1.70 % 20.27 % —

Total - AFS $ 3,428,985 $ 1,983,353 $ 36,781 $ (6,317) $ 2,013,817 3.64 % 6.20 % $ 1,771,436

Consolidated SLST

Non-Agency RMBS

Subordinated $ 238,017 $ 189,962 $ — $ (49,684) $ 140,278 4.44 % 4.01 % $ 55,881

IO 139,914 17,937 — (1,061) 16,876 3.50 % 7.43 % —

Total Non-Agency RMBS 377,931 207,899 — (50,745) 157,154 4.09 % 4.32 % 55,881

Total - Consolidated SLST $ 377,931 $ 207,899 $ — $ (50,745) $ 157,154 4.09 % 4.32 % $ 55,881

Total Investment Securities $ 3,806,916 $ 2,191,252 $ 36,781 $ (57,062) $ 2,170,971 3.74 % 5.80 % $ 1,827,317

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

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

(3) Outstanding repurchase agreements as of December 31, 2023 do not include $34.7 million of repurchase agreement financing for CDOs repurchased from our residential loan securitizations.

Repurchased CDOs are eliminated in consolidation in accordance with GAAP.

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

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

Investment Securities Financing

Repurchase Agreements

As of December 31, 2024, the Company had $3.5 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.

The size of the haircut represents the counterparty’s perceived risk associated with holding the investment securities as collateral.

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, 2024, 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, 2024, the weighted average interest rate for repurchase agreements secured by investment securities was 4.84%.

Quarter Ended Quarterly Average

Balance End of Quarter

Balance Maximum Balance at any Month-End

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

December 31, 2022 50,077 50,077 50,077

September 30, 2022 53,159 53,159 53,159

June 30, 2022 132,712 129,331 138,301

March 31, 2022 116,766 144,852 144,852

Collateralized Debt Obligations

During the year ended December 31, 2024, the Company completed a re-securitization of its investment in certain subordinated securities issued by Consolidated SLST, which we refer to 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.

The following table presents a summary of CDOs issued by our non-Agency RMBS re-securitization as of December 31, 2024:

December 31, 2024

Outstanding Face Amount Carrying Value Interest Rate (1)(2)

Stated Maturity (3)

Non-Agency RMBS re-securitization at fair value (4)

$ 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.

As of December 31, 2024, CDOs with an aggregate outstanding face amount of $70.9 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.

(4) The Company has elected the fair value option for CDOs issued by its non-Agency RMBS re-securitization ( see Note 17 ) .

For the year ended December 31, 2024, the Company recognized $0.2 million in net unrealized losses on its non-Agency RMBS re-securitization, which are included in unrealized (losses) gains, net on the accompanying consolidated statements of operations.

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.

Mezzanine Lending

The Company's Mezzanine Lending strategy may include preferred equity in, and mezzanine loans to, entities that have multi-family real estate assets.

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.

4 unchanged sentences

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.

During the year ended December 31, 2023, the Company reconsidered its evaluation of its variable interest in a VIE that owned a multi-family apartment community and in which the Company holds a preferred equity investment.

The Company determined that it gained the power to direct the activities, and became primary beneficiary, of the VIE and consolidated the VIE into its consolidated financial statements.

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.

Also during the year ended December 31, 2024, the Company evaluated the hypothetical liquidation value of one preferred equity investment and its preferred equity investment in a Consolidated VIE and ceased further preferred return accruals.

These two investments represent 17.3% 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.

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

25 unchanged sentences

Cash and cash equivalents

$ 392 $ 1,300

Real estate, net

53,420 53,508

Lease intangible, net (a)

Other assets 4,030 4,939

6 unchanged sentences

Preferred equity investment in Consolidated VIE $ 17,344 $ 16,967

(a) Included in other assets in the accompanying consolidated balance sheets.

Mezzanine Lending Characteristics

3 unchanged sentences

Weighted Average DSCR (2)

Florida 3 $ 54,115 29.0 % 13.1 % 83 % 0.89x (3)

Texas 6 $ 51,536 45.5 % 12.40 % 84 % 1.10x

Arizona 1 15,031 13.3 % 14.00 % 80 % 1.49x

Tennessee 1 13,045 7.0 % 14.0 % 86 % 0.51x (4)

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

6 unchanged sentences

Texas 6 49,619 26.6 % 12.39 % 84 % 1.08x

Utah 1 21,970 10.3 % 12.0 % 68 % N/A (5)

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

3 unchanged sentences

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

(4) DSCR for this property affected by recent senior loan and Mezzanine Lending modifications.

(5) Not applicable as the underlying property is subject to a senior construction loan agreement.

(6) DSCR for this property affected by low occupancy as of December 31, 2023.

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

Equity Investments in Multi-Family Entities

The Company owns joint venture equity investments in entities that own multi-family properties.

The Company determined that these joint venture entities are VIEs and that the Company is the primary beneficiary of all but two of these VIEs, resulting in consolidation of the VIEs where we are the primary beneficiary, including their assets, liabilities, income and expenses, in our consolidated financial statements in accordance with GAAP.

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.

In September 2022, the Company announced a repositioning of its business through the opportunistic disposition over time of the Company's joint venture equity investments in multi-family properties and reallocation of the returned capital from such investments to its targeted 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 joint venture equity investments ("Consolidated JVs") and disposal group held for sale totaled $153.7 million and $236.3 million as of December 31, 2024 and 2023, respectively.

A reconciliation of our net equity investments in Consolidated JVs and disposal group held for sale, including one preferred equity investment in a Consolidated VIE, to our consolidated financial statements as of December 31, 2024 and 2023, respectively, is shown below (dollar amounts in thousands):

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.

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

2 unchanged sentences

424,655 481,161

Lease intangible, net (1)

Assets of disposal group held for sale (1)

5 unchanged sentences

Liabilities of disposal group held for sale (1)

97,065 386,024

Other liabilities 9,533 10,621

9 unchanged sentences

(17,344) (16,967)

Net equity investment in Consolidated JVs and disposal group held for sale

Remaining net equity investment

$ 136,133 $ 153,747

(1) Included in other assets in the accompanying consolidated balance sheets.

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

(1) Se e 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.

2 unchanged sentences

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

Unconsolidated Multi-Family Joint Venture Equity Investments

The Company owns equity interests in two additional joint venture entities that own multi-family apartment communities.

The Company determined that these joint venture entities are VIEs but that the Company is not the primary beneficiary, resulting in the Company recording its equity investments at fair value.

We receive variable distributions from these investments on a pro rata basis and 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 following tables summarize our unconsolidated multi-family joint venture equity investments as of December 31, 2024 and 2023, respectively (dollar amounts in thousands):

December 31, 2024

State Property Count Ownership Interest Fair Value

Texas 2 70% $ 1,338

December 31, 2023

State Property Count Ownership Interest Fair Value

Texas 2 70% $ 5,720

Joint Venture Equity Investments in Consolidated Multi-Family Properties not in Disposal Group Held for Sale

As of December 31, 2024, the Company's net joint venture equity investments in consolidated multi-family properties not in disposal group held for sale of $134.2 million consists of a combined preferred equity and common equity investment in one joint venture entity that does not meet the criteria to be classified as disposal group held for sale.

The joint venture 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 $12.4 million as of December 31, 2024.

The geographic concentrations in joint venture equity investments in consolidated multi-family properties exceeding 5% of our joint venture equity investments in consolidated multi-family properties not in disposal group held for sale as of December 31, 2024 and 2023, respectively, are shown below (dollar amounts in thousands):

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.

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

13 unchanged sentences

Percentage of Total Net Equity Investment

Florida 5 50% - 95%

$ 50,505 54.7 %

$ 49,727 29.4 %

Tennessee 2 65% - 70%

Florida 1 50%

$ 15,868 17.2 %

South Carolina 2 67% - 70%

Kentucky 1 70%

$ 11,310 12.2 %

1 unchanged sentence

$ 7,106 7.7 %

Kentucky 1 70%

Tennessee 1 65%

$ 5,557 6.0 %

(1) Represents our joint venture equity investment in consolidated multi-family properties net of redeemable non-controlling interest at its estimated redemption value.

Property Data for Joint Venture Equity Investments in Multi-Family Properties not in Disposal Group Held for Sale

The following table provides summary information regarding our joint venture equity investments in multi-family properties that are not in disposal group held for sale as of December 31, 2024.

(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)

7 unchanged sentences

St Petersburg, FL 1 97.6 % 326 2,643 84.5 %

Webster, TX 1 92.9 % 366 967 78.1 %

Total Count/Average 9 92.9 % 2,532 $ 1,516 83.1 %

1 unchanged sentence

(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.

Property Data for Joint Venture Equity Investments in Multi-Family Properties in Disposal Group Held for Sale

The following table provides summary information regarding the multi-family properties in the disposal group held for sale as of December 31, 2024.

Market Property Count Occupancy % Units Rent per Unit (1)

Fort Myers, FL 1 91.7 % 338 $ 1,560 77.3 %

Tampa, FL 1 92.3 % 400 1,581 77.6 %

Total Count/Average 2 92.0 % 738 $ 1,571 77.5 %

(1) Represents average monthly rent per unit.

(2) Represents the weighted average LTV of the underlying properties utilizing maximum senior committed mortgage amount and combined origination appraisal and capital expenditure budget.

Equity Investment in Entity that Originates Residential Loans

As of December 31, 2024 and 2023, the Company had an investment in an entity that originates residential loans.

The Company accounts for this investment using the equity method and has elected the fair value option.

The following table summarizes our ownership interest in the entity that originates residential loans as of December 31, 2024 and 2023, respectively (dollar amounts in thousands):

December 31, 2024 December 31, 2023

Strategy Ownership Interest Fair Value Ownership Interest Fair Value

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

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

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 financial instruments in connection with its risk management activities.

These derivative instruments may include interest rate swaps, interest rate caps, credit default swaps, futures and options contracts such as options on credit default swap indices, equity index options, swaptions and options on futures.

The Company may also pursue forward-settling purchases or sales of Agency RMBS where the underlying pools of mortgage loans are “To-Be-Announced,” or TBAs, purchase options on U.S.

Treasury futures or invest in other types of mortgage derivative securities.

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.

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.

The Company uses interest rate swaps to hedge the variable cash flows associated with our variable-rate borrowings.

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.

1 unchanged sentence

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 has U.S.

Treasury future contracts that obligate the Company to sell or buy U.S.

The Company also has U.S.

Treasury futures to manage exposure to changes in interest rate risk.

Treasury future contracts obligate the Company to sell or buy U.S.

Treasury securities for future delivery.

The Company has 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 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.

During the period these contracts are open, changes in the value of the contract are recognized as gains or losses on derivative instruments.

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

2029 Senior Notes

On June 28, 2024, the Company completed the issuance of $60.0 million in aggregate principal amount of its 9.125% Senior Notes due 2029 (the "2029 Senior Notes") in an underwritten public offering.

The 2029 Senior Notes were issued at par, bear interest at a rate equal to 9.125% per year and mature on July 1, 2029, unless earlier redeemed.

2026 Senior Notes

As of December 31, 2024, the Company had $100.0 million aggregate principal amount of its 5.75% Senior Notes due 2026 (the "2026 Senior Notes") outstanding.

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%.

The Company's 2026 Senior Notes, which mature on April 30, 2026, 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 and limit the amount of leverage the Company may utilize and its ability to transfer the Company’s assets substantially as an entirety or merge into or consolidate with another person.

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

11 unchanged sentences

Additional paid-in capital 2,294,194 2,289,044

Accumulated other comprehensive loss

Accumulated deficit (1,408,647) (1,430,675)

5 unchanged sentences

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 financing.

Beginning in 2023 and through the year ended December 31, 2024, we have been expanding our holdings of Agency RMBS, which is more liquid than many if not all of the investments in our portfolio of credit investments.

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, 2024, 62% of our debt, excluding mortgages payable on real estate and Consolidated SLST CDOs, is subject to mark-to-market margin calls, with 44% collateralized by Agency RMBS, 10% collateralized by U.S.

Treasury securities and 8% collateralized by residential credit assets.

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 with a 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 high-coupon business purpose loans.

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, 2024, we had $163.3 million of available cash and cash equivalents (excluding cash and cash equivalents held by Consolidated Real Estate VIEs), $170.2 million of unencumbered investment securities (including the securities we own in Consolidated SLST and CDOs repurchased from our residential loan securitizations) and $128.7 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 CDOs.

With respect to the multi-family properties in which we hold joint venture equity investments, the properties are encumbered by a senior mortgage loan.

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.

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 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.

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 investment portfolio, 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.

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;

1 unchanged sentence

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

During the year ended December 31, 2024, net cash, cash equivalents and restricted cash decreased by $1.6 million.

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 of $14.1 million during the year ended December 31, 2024.

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 and loss on reclassification of disposal group).

Cash Flows Used in Investing Activities

During the year ended December 31, 2024, our net cash flows used in investing activities were $2.2 billion, primarily as a result of purchases of investment securities and residential loans.

This was partially offset by principal repayments received on residential loans and investment securities, net proceeds from the sale of residential loans and real estate, net variation margin and payments received on derivative instruments and return of capital from equity investments.

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 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.

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).

2 unchanged sentences

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 proceeds from the issuance of CDOs and senior unsecured notes.

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.

10 unchanged sentences

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, 2024, we had longer-term repurchase agreements with initial terms of up to two years with multiple third-party financial institutions that are secured by certain of our residential loans, real estate owned and single-family rental properties.

The outstanding financing under five of these repurchase agreements are subject to margin calls to the extent the market value of the collateral falls below specified levels.

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.

S ee "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, proceeds from the residential loans, 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 may be accelerated upon an event of default.

The repurchase agreements secured by residential loans, 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, 2024, we had an aggregate amount at risk under repurchase agreements secured by residential loans, real estate owned and single-family rental properties of approximately $162.8 million, which represents the difference between the carrying value of the collateral pledged and the outstanding balance of our repurchase agreements.

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.

2 unchanged sentences

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, 2024 included $128.0 million of Agency RMBS and $42.2 million of non-Agency RMBS (including an IO security we own in Consolidated SLST and CDOs repurchased from our residential loan securitizations).

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).

At December 31, 2025, the Company had $100.0 million aggregate principal amount of 2026 Senior Notes outstanding.

2 unchanged sentences

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 and limit the amount of leverage the Company may utilize and its ability to transfer the Company’s 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.

2 unchanged sentences

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.

1 unchanged sentence

See Note 14 to our consolidated financial statements included in this report for further discussion.

The real estate assets held by our multi-family joint venture equity investments are subject to mortgages payable.

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, 2024, our Company recourse leverage ratio, which represents our total outstanding recourse repurchase agreement financing, subordinated debentures and senior unsecured notes divided by our total stockholders' equity, was approximately 3.0 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, including mortgages payable on real estate of disposal group held for sale.

As of December 31, 2024, our portfolio recourse leverage ratio, which represents our outstanding recourse repurchase agreement financing divided by our total stockholders' equity, was approximately 2.9 to 1.

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.

1 unchanged sentence

Certain of our hedging instruments may also impact our liquidity.

We may use interest rate swaps, interest rate caps, credit default swaps, futures and options contracts such as options on credit default swap indices, equity index options, swaptions and options on futures.

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.

With respect to interest rate swaps, credit default swaps, futures contracts and TBAs, initial margin deposits, which can be comprised of either cash or investment securities, will be made upon entering into these contracts.

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.

1 unchanged sentence

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 mortgages payable in our Consolidated Real Estate VIEs, the joint venture entities may be required by the lender to enter into interest rate cap contracts.

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.

1 unchanged sentence

During the period these contracts are open, changes in the value of the contract are recognized as gains or losses on derivative instruments.

The joint venture entities that own the multi-family properties may be required to enter into new interest rate cap contracts upon their expiration and may require the Company to contribute additional capital to the respective joint venture.

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

1 unchanged sentence

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.

The Company had no securities offerings during the year ended December 31, 2024.

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

19 unchanged sentences

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 one of our joint venture equity investments, third party investors in this joint venture 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.

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.

17 unchanged sentences

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

In addition, pursuant to the operating agreement for one of our joint venture equity investments, subject to certain conditions, third party investors in this joint venture have the ability to sell their ownership interests to us, at their election, and we are obligated to purchase such interests for cash.

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.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 7. Management’s Discussion and Analysis