What changed in this filing

/stocks — the workspaceLOADING

Item 9A. Controls and Procedures

2026-02-20 compared with 2025-02-21 · 984 added, 686 removed, 2149 unchanged (44% of the section changed)

43 unchanged sentences

Exhibit Description

Articles of Amendment and Restatement of the Company, as amended (Incorporated by reference to Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 5, 2023).

Third Amended and Restated Bylaws of the Company (Incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on November 22, 2022).

Fourth Amended and Restated Bylaws of the Company (Incorporated by reference to Exhibit 3.2 of the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on September 2, 2025).

Articles Supplementary designating the Company’s 7.75% Series B Cumulative Redeemable Preferred Stock (the “Series B Preferred Stock”) (Incorporated by reference to Exhibit 3.3 to the Company’s Registration Statement on Form 8-A filed with the Securities and Exchange Commission on May 31, 2013).

12 unchanged sentences

Articles Supplementary classifying and designating 2,000,000 additional shares of the Series G Preferred Stock (Incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on March 2, 2022).

Articles of Amendment effecting the change of the name of the Company (Incorporated by reference to Exhibit 3.1 of the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on September 2, 2025).

Form of Common Stock Certificate (Incorporated by reference to Exhibit 4.1 to the Company’s Registration Statement on Form S-11 (Registration No.

14 unchanged sentences

Form of 9.125% Senior Notes due 2030 (Incorporated by reference to Exhibit 4.12 to the Company’s Registration Statement on Form 8-A filed with the Securities and Exchange Commission on January 14, 2025).

Supplemental Indenture, dated June 12, 2025, between the Company and UMB Bank National Association, as trustee (Incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on June 13, 2025).

Fourth Supplemental Indenture, dated July 8, 2025, between the Company and U.S.

Bank Trust Company, National Association, as trustee (Incorporated by reference to Exhibit 4.14 to the Company’s Registration Statement on Form 8-A filed with the Securities and Exchange Commission on July 8, 2025).

Form of 9.875% Senior Notes Due 2030 of the Company (Incorporated by reference to Exhibit 4.15 to the Company’s Registration Statement on Form 8-A filed with the Securities and Exchange Commission on July 8, 2025).

Fifth Supplemental Indenture, dated January 13, 2026, between the Company and U.S.

Bank Trust Company, National Association, as trustee (Incorporated by reference to Exhibit 4.16 to the Company's Registration Statement on Form 8-A filed with the Securities and Exchange Commission on January 13, 2026).

Form of 9.250% Senior Notes Due 2031 of the Company (Incorporated by reference to Exhibit 4.17 to the Company’s Registration Statement on Form 8-A filed with the Securities and Exchange Commission on January 13, 2026).

Certain instruments defining the rights of holders of long-term debt securities of the Company and its subsidiaries are omitted pursuant to Item 601(b)(4)(iii) of Regulation S-K.

3 unchanged sentences

Amendment No.

1 to the New York Mortgage Trust, Inc.

2017 Equity Incentive Plan (Incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on June 28, 2019).†

1 to the Company's 2017 Equity Incentive Plan (Incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on June 28, 2019).

Amendment No.

2 to the New York Mortgage Trust, Inc.

2017 Equity Incentive Plan (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on June 14, 2021).†

2 to the Company's 2017 Equity Incentive Plan (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on June 14, 2021).

Form of Restricted Stock Award Agreement for Officers (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on July 14, 2009).

Form of Restricted Stock Award Agreement for Directors (Incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on July 14, 2009).

Employment Agreement, dated as of December 23, 2021, between the Company and Jason T.

Serrano (Incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on December 23, 2021).†

Employment Agreement, dated as of February 1, 2022, between the Company and Kristine R.

Nario-Eng (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on February 4, 2022).†

Employment Agreement, dated as of December 13, 2022, between the Company and Nicholas Mah (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on December 14, 2022).†

The Company’s 2018 Annual Incentive Plan (Incorporated by reference to Exhibit 10.11 to the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 27, 2018).†

Amended and Restated Employment Agreement, dated as of November 3, 2025, between the Company and Jason T.

Serrano (Incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 4, 2025).

Amended and Restated Employment Agreement, dated as of November 3, 2025, between the Company and Kristine R.

Nario-Eng (Incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 4, 2025).

Amended and Restated Employment Agreement, dated as of November 3, 2025, between the Company and Nicholas Mah (Incorporated by reference to Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 4, 2025).

The Company's Amended and Restated 2019 Annual Incentive Plan (Incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 5, 2019).

Form of 2019 Performance Stock Unit Award Agreement (Incorporated by reference to Exhibit 10.12 to the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 25, 2019).†

The Company’s 2020 Annual Incentive Plan (Incorporated by reference to Exhibit 10.12 to the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 28, 2020).

Form of 2020 Performance Stock Unit Award Agreement (Incorporated by reference to Exhibit 10.13 to the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 28, 2020).†

Form of 2020 Restricted Stock Unit Award Agreement (Incorporated by reference to Exhibit 10.14 to the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 28, 2020).

17 unchanged sentences

Form of 2025 Performance Stock Unit Award Agreement.

(Incorporated by reference to Exhibit 10.32 to the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 21, 2025).

Form of 2025 Restricted Stock Unit Award Agreement.

(Incorporated by reference to Exhibit 10.33 to the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 21, 2025).

The Company's 2025 Annual Incentive Plan.

(Incorporated by reference to Exhibit 10.34 to the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 21, 2025).

Form of 2025 Deferred Stock Unit Agreement (Incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 1, 2025).

Form of 2026 Performance Stock Unit Award Agreement.

Form of 2026 Restricted Stock Unit Award Agreement.

The Company’s 2026 Annual Incentive Plan.

Form of Indemnification Agreement (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on April 23, 2020).

Form of Change in Control Agreement (Incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on February 4, 2022).†

Insider Trading Policy.

9 unchanged sentences

(Incorporated by reference to Exhibit 1.1 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on August 11, 2021).

Equity Distribution Agreement, dated March 29, 2019, by and between the Company and JonesTrading Institutional Services LLC (Incorporated by reference to Exhibit 1.1 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on March 29, 2019).

Amendment No.

1 to Equity Distribution Agreement, dated November 27, 2019, by and between the Company and JonesTrading Institutional Services LLC (Incorporated by reference to Exhibit 1.1 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on November 27, 2019).

Amendment No.

2 to Equity Distribution Agreement, dated August 10, 2021, by and between the Company and JonesTrading Institutional Services LLC (Incorporated by reference to Exhibit 1.2 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on August 11, 2021).

Amendment No.

3 to Equity Distribution Agreement, dated March 2, 2022, by and between the Company and JonesTrading Institutional Services LLC (Incorporated by reference to Exhibit 1.1 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on March 2, 2022).

101.INS XBRL Instance Document ***

101.SCH Taxonomy Extension Schema Document ***

101.CAL Taxonomy Extension Calculation Linkbase Document ***

101.DE XBRL Taxonomy Extension Definition Linkbase Document ***

101.LAB Taxonomy Extension Label Linkbase Document ***

101.PRE Taxonomy Extension Presentation Linkbase Document ***

Equity Distribution Agreement, dated June 13, 2025, by and between the Company and JonesTrading Institutional Services LLC (Incorporated by reference to Exhibit 1.1 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on June 13.

XBRL Instance Document

Taxonomy Extension Schema Document

Taxonomy Extension Calculation Linkbase Document

101.DE XBRL***

Taxonomy Extension Definition Linkbase Document

Taxonomy Extension Label Linkbase Document

Taxonomy Extension Presentation Linkbase Document

104 Cover Page Interactive Data File-the cover page XBRL tags are embedded within the Inline XBRL document

7 unchanged sentences

(ii) Consolidated Statements of Operations for the years ended December 31, 2025, 2024 and 2023;

(iii) Consolidated Statements of Comprehensive Loss for the years ended December 31, 2024, 2023 and 2022;

(iii) Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2025, 2024 and 2023;

(iv) Consolidated Statements of Changes in Stockholders’ Equity for the years ended December 31, 2025, 2024 and 2023;

3 unchanged sentences

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

NEW YORK MORTGAGE TRUST, INC.

ADAMAS TRUST, INC.

February 20, 2026 By:

24 unchanged sentences

Pendergast Director February 20, 2026

NEW YORK MORTGAGE TRUST, INC.

ADAMAS TRUST, INC.

AND SUBSIDIARIES

4 unchanged sentences

December 31, 2025

NEW YORK MORTGAGE TRUST, INC.

ADAMAS TRUST, INC.

AND SUBSIDIARIES

4 unchanged sentences

Consolidated Statements of Operations

Consolidated Statements of Comprehensive Loss

Consolidated Statements of Comprehensive Income ( Loss )

Consolidated Statements of Changes in Stockholders' Equity

2 unchanged sentences

Summary of Significant Accounting Policies

Residential Loans, at Fair Value

Investment Securities Available For Sale, at Fair Value

Residential Loans and Residential Loans Held for Sale , at Fair Value

Multi-family Loans, at Fair Value

6 unchanged sentences

Other Assets and Other Liabilities

Repurchase Agreements

Repurchase Agreements and Warehouse Facilities

Collateralized Debt Obligations

2 unchanged sentences

Stockholders' Equity

Loss Per Common Share

Earnings ( Loss ) Per Common Share

Stock Based Compensation

Net Interest Income

B usiness Combination

S egment Reporting

4 unchanged sentences

Board of Directors and Stockholders

New York Mortgage Trust, Inc.

Adamas Trust, Inc.

Opinion on the financial statements

We have audited the accompanying consolidated balance sheets of New York Mortgage Trust, Inc.

(a Maryland corporation) and subsidiaries (the “Company”) as of December 31, 2024 and 2023, the related consolidated statements of operations, comprehensive loss, changes in stockholders’ equity, and cash flows for each of the three years in the period ended December 31, 2024, and the related notes and financial statement schedules included under Item 15(a) (collectively referred to as the “financial statements”).

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.

We have audited the accompanying consolidated balance sheets of Adamas Trust, Inc.

(formerly known as, New York Mortgage Trust, Inc.) (a Maryland corporation) and subsidiaries (the “Company”) as of December 31, 2025 and 2024, the related consolidated statements of comprehensive income (loss), changes in stockholders’ equity, and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and financial statement schedules included under Item 15(a) (collectively referred to as the “consolidated financial statements”).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”), and our report dated February 20, 2026 expressed an unqualified opinion.

15 unchanged sentences

Fair value measurements of residential loans held by the Company and residential loans held by securitization trusts

As described further in Notes 2 and 3 to the financial statements, the Company's residential loans, at fair value includes residential loans held by the Company and residential loans held by securitization trusts (“Residential Loans”).

These consist of performing, re-performing and non-performing residential loans and business purpose loans, which are recorded at fair value, using a fair value option election on a recurring basis.

The Company determines the fair value measurement after considering valuations obtained from a third party that specializes in providing valuations of residential loans.

We identified the fair value measurement of Residential Loans as a critical audit matter.

As described further in Notes 2, 4 and 17 to the consolidated financial statements, the Company’s residential loans, at fair value includes residential loans held by the Company and residential loans held by securitization trusts (“Residential Loans”).

These consist of performing, re-performing and non-performing residential loans and business purpose loans, which are presented at fair value pursuant to a fair value election in accordance with ASC 825, Financial Instruments.

The Company determines the fair value measurement using valuations obtained from a third-party that specializes in providing valuations of residential loans and using transaction prices for certain originated loans.

We identified the fair value measurement of Residential Loans based on valuations provided by a third-party specialist as a critical audit matter.

The principal considerations for our determination that the fair value measurement of Residential Loans was a critical audit matter are that the assets are priced using unobservable inputs.

As such, the fair value measurement requires management to make judgments in order to identify and select the appropriate model and significant assumptions, which may include forecast prepayment rates, default rates, discount rates and rates for loss upon default and collateral values, among others.

In addition, the fair value measurements of Residential Loans are highly sensitive to changes in the significant assumptions and underlying market conditions and are material to the financial statements.

As a result, obtaining sufficient appropriate audit evidence related to the fair value measurement required significant auditor subjectivity.

As such, management makes judgments with respect to the significant assumptions to determine fair value, which may include lifetime conditional prepayment rate, default rate, loss severity, yield and property values, among others.

The significant assumptions used in the valuation are sensitive to variation and underlying market conditions, such that minor changes can cause significant changes in the estimates.

As a result, the evaluation of the significant assumptions required significant auditor judgement.

Our audit procedures related to the fair value measurement of Residential Loans included the following, among others:

• We tested the design and operating effectiveness of relevant controls performed by management relating to the fair value measurement of Residential Loans.

We involved valuation specialists to test the reasonableness of property values used by management under the liquidation model for certain loans and we also involved valuation specialists to independently determine the fair value measurement of the Residential Loans and compared them to management’s fair value measurement for reasonableness.

• With assistance of valuation specialists, we tested the reasonableness of property values used by management under the liquidation model for a sample of Residential Loans.

• We also involved valuation specialists to independently determine a range of fair value estimates of the Residential Loans and compared them to management’s fair value measurement for reasonableness.

Fair value measurements of certain interest only and first loss subordinated securities issued by Freddie Mac-sponsored residential loan securitization entities (“Consolidated SLST”) holding residential loans

As described further in Notes 2 and 3 to the financial statements, the Company owns investment securities, including interest only and first loss subordinated securities which are recorded at fair value on a recurring basis.

As described further in Notes 2, 4 and 17 to the consolidated financial statements, the Company owns investment securities, including interest only and first loss subordinated securities which are recorded at fair value on a recurring basis.

Some of these investment securities result in the consolidation of the underlying securitization entities as required by Accounting Standards Codification 810, Consolidation.

The Company has elected to account for the consolidated securitization entities as Collateralized Finance Entities (“CFEs”) and has elected to measure the financial assets of its CFEs using the fair value of the financial liabilities issued by those entities, which management has determined to be more observable.

The interest only and first loss subordinated securities issued by Consolidated SLST are priced individually by the Company utilizing market comparable pricing and discounted cash flow analysis valuation techniques.

The interest only and first loss subordinated securities issued by Consolidated SLST, are priced individually by the Company utilizing discounted cash flow valuation techniques.

We identified the fair value measurement of these interest-only and first loss subordinated securities in Consolidated SLST (“SLST Investments”) as a critical audit matter.

The principal considerations for our determination that the fair value measurement of the SLST Investments is a critical audit matter are that there is limited observable market data available for these SLST Investments.

As such, the fair value measurement requires management to make judgments in order to identify and select the significant assumptions, which may include the discount rate, prepayment rate, collateral default rate and loss severity.

In addition, the fair value measurements of the SLST Investments are highly sensitive to changes in the significant assumptions and underlying market conditions and are material to the financial statements.

As a result, obtaining sufficient appropriate audit evidence related to the fair value measurement required significant auditor subjectivity.

The principal considerations for our determination that the fair value measurement of SLST Investments is a critical audit matter are that there is limited observable market data available for these SLST Investments.

As such, fair value measurement requires management to make judgments in order to identify and select the significant assumptions, which may include the yield, collateral prepayment rate, collateral default rate and loss severity.

In addition, the significant assumptions used in the valuation are sensitive to variation and underlying market conditions, such that minor change can cause significant changes in the estimates.

As a result, the evaluation of the significant assumptions required subjective and complex auditor judgement.

Our audit procedures related to the fair value measurement of SLST Investments included the following, among others:

• We tested the design and operating effectiveness of relevant controls performed by management relating to the fair value measurement of the SLST Investments.

We also involved a valuation specialist to independently determine the fair value measurement of the SLST Investments and compared them to management’s fair value measurement for reasonableness.

• We also involved a valuation specialist to independently determine a range of fair value estimates of the SLST Investments and compared them to management’s fair value measurement for reasonableness.

/s/ GRANT THORNTON LLP

4 unchanged sentences

Board of Directors and Stockholders

New York Mortgage Trust, Inc.

Adamas Trust, Inc.

Opinion on internal control over financial reporting

We have audited the internal control over financial reporting of New York Mortgage Trust, Inc.

(a Maryland corporation) and subsidiaries (the “Company”) as of December 31, 2024, based on criteria established in the 2013 Internal Control— Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”).

We have audited the internal control over financial reporting of Adamas Trust, Inc.

(formerly known as, New York Mortgage Trust, Inc.) (a Maryland corporation) and subsidiaries (the “Company”) as of December 31, 2025, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”).

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in the 2013 Internal Control—Integrated Framework issued by COSO.

19 unchanged sentences

February 20, 2026

NEW YORK MORTGAGE TRUST, INC.

ADAMAS TRUST, INC.

AND SUBSIDIARIES

2 unchanged sentences

December 31, 2025 December 31, 2024

Residential loans, at fair value $ 3,841,738 $ 3,084,303

Investment securities available for sale, at fair value $ 6,904,781 $ 3,828,544

Residential loans, at fair value 4,358,175 3,841,738

Residential loans held for sale, at fair value 80,707 —

Multi-family loans, at fair value 55,476 86,192

7 unchanged sentences

LIABILITIES AND EQUITY

Repurchase agreements $ 4,012,225 $ 2,471,113

Repurchase agreements and warehouse facilities

$ 6,753,417 $ 4,012,225

Collateralized debt obligations ($ 3,148,157 at fair value and $ 363,645 at amortized cost, net as of December 31, 2025 and $ 2,135,680 at fair value and $ 842,764 at amortized cost, net as of December 31, 2024)

3,511,802 2,978,444

Senior unsecured notes ($ 60,310 at fair value and $ 98,886 at amortized cost, net as of December 31, 2024 and $ 98,111 at amortized cost, net as of December 31, 2023)

Senior unsecured notes ($ 260,852 at fair value and $ 99,585 at amortized cost, net as of December 31, 2025 and $ 60,310 at fair value and $ 98,886 at amortized cost, net as of December 31, 2024)

360,437 159,196

8 unchanged sentences

Stockholders' Equity:

Preferred stock, par value $ 0.01 per share, 31,500,000 shares authorized, 22,164,414 shares issued and outstanding ($ 554,110 aggregate liquidation preference)

Preferred stock, par value $ 0.01 per share, 31,500,000 shares authorized, 22,385,674 and 22,164,414 shares issued and outstanding as of December 31, 2025 and December 31, 2024, respectively ($ 559,642 and $ 554,110 aggregate liquidation preference as of December 31, 2025 and December 31, 2024, respectively)

540,472 535,445

11 unchanged sentences

The accompanying notes are an integral part of the consolidated financial statements.

NEW YORK MORTGAGE TRUST, INC.

ADAMAS TRUST, INC.

AND SUBSIDIARIES

16 unchanged sentences

Total net loss from real estate ( 12,417 ) ( 42,841 ) ( 31,302 )

Realized (losses) gains, net

OTHER INCOME (LOSS):

Realized losses, net

( 65,428 ) ( 29,351 ) ( 27,059 )

Unrealized (losses) gains, net

Unrealized gains (losses), net

217,395 ( 90,530 ) 97,196

Gains (losses) on derivative instruments, net

(Losses) gains on derivative instruments, net

( 58,303 ) 95,996 ( 26,378 )

Income from equity investments 16,011 17,785 15,074

Mortgage banking activities, net 26,621 — —

(Loss) income from equity investments

( 3,168 ) 16,011 17,785

Impairment of real estate

3 unchanged sentences

Other income 16,509 29,149 4,736

Total other loss

Total other income (loss)

123,859 ( 42,236 ) ( 39,431 )

2 unchanged sentences

Portfolio operating expenses 28,011 30,688 23,952

Debt issuance costs

Loan origination costs

Financing transaction costs 14,173 12,335 —

Total general, administrative and operating expenses 122,941 91,695 73,517

LOSS FROM OPERATIONS BEFORE INCOME TAXES

INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES

137,802 ( 92,917 ) ( 77,724 )

Income tax expense 145 1,036 75

NET INCOME (LOSS)

137,657 ( 93,953 ) ( 77,799 )

1 unchanged sentence

11,391 31,924 29,134

NET LOSS ATTRIBUTABLE TO COMPANY

NET INCOME (LOSS) ATTRIBUTABLE TO COMPANY

149,048 ( 62,029 ) ( 48,665 )

1 unchanged sentence

Gain on repurchase of preferred stock

NET LOSS ATTRIBUTABLE TO COMPANY'S COMMON STOCKHOLDERS

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

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

Basic loss per common share

Basic earnings (loss) per common share

$ 1.12 $ ( 1.14 ) $ ( 0.99 )

Diluted loss per common share

Diluted earnings (loss) per common share

$ 1.10 $ ( 1.14 ) $ ( 0.99 )

2 unchanged sentences

The accompanying notes are an integral part of the consolidated financial statements.

NEW YORK MORTGAGE TRUST, INC.

ADAMAS TRUST, INC.

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Dollar amounts in thousands)

1 unchanged sentence

2025 2024 2023

NET LOSS ATTRIBUTABLE TO COMPANY'S COMMON STOCKHOLDERS

$ ( 103,785 ) $ ( 90,035 ) $ ( 340,577 )

OTHER COMPREHENSIVE INCOME (LOSS)

Increase (decrease) in fair value of available for sale securities

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

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

OTHER COMPREHENSIVE INCOME

Increase in fair value of available for sale securities

Reclassification adjustment for net loss included in net loss

TOTAL OTHER COMPREHENSIVE INCOME (LOSS)

4 1,966 ( 3,748 )

COMPREHENSIVE LOSS ATTRIBUTABLE TO COMPANY'S COMMON STOCKHOLDERS

TOTAL OTHER COMPREHENSIVE INCOME

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

$ 101,106 $ ( 103,781 ) $ ( 88,069 )

The accompanying notes are an integral part of the consolidated financial statements.

NEW YORK MORTGAGE TRUST, INC.

ADAMAS TRUST, INC.

AND SUBSIDIARIES

4 unchanged sentences

Balance, December 31, 2022 $ 912 $ 538,351 $ 2,282,691 $ ( 1,052,768 ) $ ( 1,970 ) $ 1,767,216 $ 33,092 $ 1,800,308

($( 38,190 ) allocated to redeemable non-controlling interest)

Net loss ($( 17,067 ) allocated to redeemable non-controlling interest)

— — — ( 48,665 ) — ( 48,665 ) ( 12,067 ) ( 60,732 )

Preferred stock issuance, net — 130 — — — 130 — 130

Common stock repurchases

( 9 ) — ( 8,606 ) — — ( 8,615 ) — ( 8,615 )

Preferred stock repurchases — ( 2,906 ) — 467 — ( 2,439 ) — ( 2,439 )

Stock based compensation expense, net 4 — 8,821 — — 8,825 — 8,825

Dividends declared on common stock — — — ( 109,279 ) — ( 109,279 ) — ( 109,279 )

— — — ( 150,232 ) — ( 150,232 ) — ( 150,232 )

Dividends declared on preferred stock — — — ( 41,837 ) — ( 41,837 ) — ( 41,837 )

— — — ( 41,972 ) — ( 41,972 ) — ( 41,972 )

Dividends attributable to dividend equivalents — — — ( 1,735 ) — ( 1,735 ) — ( 1,735 )

Decrease in fair value of available for sale securities — — — — ( 3,748 ) ( 3,748 ) — ( 3,748 )

Reclassification adjustment for net loss included in net loss

— — — — 1,822 1,822 — 1,822

Increase in fair value of available for sale securities — — — — 144 144 — 144

Increase in non-controlling interest related to initial consolidation of VIEs — — — — — — 3,790 3,790

Contributions from non-controlling interests — — ( 26 ) — — ( 26 ) 505 479

Contributions of non-controlling interest in Consolidated VIEs — — — — — — 997 997

Decrease in non-controlling interest related to distributions from Consolidated VIEs — — — — — — ( 5,359 ) ( 5,359 )

4 unchanged sentences

Common stock repurchases ( 6 ) — ( 3,487 ) — — ( 3,493 ) — ( 3,493 )

Preferred stock repurchases — ( 2,906 ) — 467 — ( 2,439 ) — ( 2,439 )

Stock based compensation expense, net 5 — 6,063 — — 6,068 — 6,068

3 unchanged sentences

Reclassification adjustment for net loss included in net loss — — — — 4 4 — 4

Increase in fair value of available for sale securities — — — — 144 144 — 144

Increase in non-controlling interest related to initial consolidation of VIEs — — — — — — 3,790 3,790

Increase in non-controlling interest related to de-consolidation of VIEs

— — — — — — 1,730 1,730

Contributions of non-controlling interest in Consolidated VIEs — — — — — — 516 516

3 unchanged sentences

$ 906 $ 535,445 $ 2,289,044 $ ( 1,430,675 ) $ — $ 1,394,720 $ 4,055 $ 1,398,775

Net loss ($( 16,926 ) allocated to redeemable non-controlling interest)

Net income (loss) ($( 9,603 ) allocated to redeemable non-controlling interest)

— — — 149,048 — 149,048 ( 1,788 ) 147,260

Preferred stock issuance, net

— 5,027 — — — 5,027 — 5,027

Common stock repurchases ( 2 ) — ( 1,500 ) — — ( 1,502 ) — ( 1,502 )

Stock based compensation expense, net 5 — 6,063 — — 6,068 — 6,068

Stock based compensation (benefit) expense, net

( 1 ) — 8,198 — — 8,197 — 8,197

Dividends declared on common stock — — — ( 77,711 ) — ( 77,711 ) — ( 77,711 )

1 unchanged sentence

Dividends attributable to dividend equivalents — — — ( 1,367 ) — ( 1,367 ) — ( 1,367 )

Reclassification adjustment for net loss included in net loss — — — — 4 4 — 4

Increase in non-controlling interest related to de-consolidation of VIEs

— — — — — — 1,730 1,730

Contributions of non-controlling interest in Consolidated VIEs — — — — — — 1,028 1,028

4 unchanged sentences

The accompanying notes are an integral part of the consolidated financial statements.

NEW YORK MORTGAGE TRUST, INC.

ADAMAS TRUST, INC.

AND SUBSIDIARIES

4 unchanged sentences

Cash Flows from Operating Activities:

Net income (loss)

$ 137,657 $ ( 93,953 ) $ ( 77,799 )

Adjustments to reconcile net loss to net cash provided by operating activities:

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Net amortization 16,579 20,219 27,500

Depreciation and amortization expense related to operating real estate 23,125 39,822 24,620

Realized losses (gains), net

Realized losses, net

65,428 29,351 27,059

Unrealized losses (gains), net

Unrealized (gains) losses, net

( 217,395 ) 90,530 ( 97,196 )

(Gains) losses on derivative investments, net

Losses (gains) on derivative investments, net

58,303 ( 95,996 ) 26,378

Gain on sale of real estate

Other gains, net

( 98 ) ( 31,086 ) ( 3,967 )

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

Gains on residential loans held for sale, net ( 14,443 ) — —

Originations of residential loans held for sale ( 432,719 ) — —

Repurchases of residential loans

( 4,738 ) — —

Proceeds from sales and repayments of residential loans held for sale 450,175 — —

Impairment of real estate 9,767 48,875 89,548

Loss on reclassification of disposal group — 14,636 16,163

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

2,864 796 ( 2,214 )

Income from preferred equity, mezzanine loan and equity investments ( 5,426 ) ( 26,796 ) ( 28,774 )

1 unchanged sentence

Stock based compensation expense, net 8,197 6,068 8,825

Cash reclassified from (to) assets of disposal group held for sale

Cash reclassified from assets of disposal group held for sale

1,951 3,215 8,267

2 unchanged sentences

Cash Flows from Investing Activities:

Acquisition of businesses, net of cash and restricted cash acquired ( 16,733 ) — —

Proceeds from sales of investment securities 724,474 5,284 64,690

3 unchanged sentences

Proceeds from sales of residential loans 169,850 162,883 25,144

Purchases of residential loans ( 1,883,708 ) ( 612,784 ) ( 1,738,474 )

Purchases and originations of residential loans

( 1,733,373 ) ( 1,883,708 ) ( 612,784 )

Principal repayments received on preferred equity and mezzanine loan investments 29,250 5,100 8,460

1 unchanged sentence

Funding of preferred equity, mezzanine loan and equity investments ( 413 ) ( 1,498 ) ( 52,400 )

Funding of joint venture equity investments in Consolidated VIEs

— — ( 177,570 )

Cash received from initial consolidation of VIEs — — 102

Proceeds from sales of joint venture equity investments in Consolidated VIEs

Proceeds from sales of joint venture equity investments in VIEs

Decrease in cash from de-consolidation of Consolidated VIEs

— ( 3,956 ) —

Net variation margin received (paid) for derivative instruments

Net variation margin (paid) received for derivative instruments

( 70,124 ) 70,656 ( 27,447 )

11 unchanged sentences

Cash Flows from Financing Activities:

Net proceeds received from repurchase agreements

Net proceeds received from repurchase agreements and warehouse facilities

2,604,209 1,535,749 1,730,366

Proceeds from issuance of senior unsecured notes

Proceeds from issuance of collateralized debt obligations

Proceeds from issuance of senior unsecured notes, net

193,505 60,000 —

Proceeds from issuance of collateralized debt obligations, net

947,788 1,350,153 —

Repurchases of common stock ( 1,502 ) ( 3,493 ) ( 8,615 )

Proceeds from preferred stock issuance, net

Repurchases of preferred stock — — ( 2,439 )

1 unchanged sentence

Dividends paid on preferred stock ( 46,460 ) ( 41,756 ) ( 41,894 )

Repayment of convertible notes — — ( 138,000 )

Net distributions to non-controlling interests in Consolidated VIEs ( 2,557 ) ( 11,893 ) ( 8,377 )

2 unchanged sentences

Payments made on Consolidated SLST CDOs ( 74,146 ) ( 61,130 ) ( 46,476 )

Net (payments made on) proceeds received from mortgages payable on real estate

Net payments made on mortgages payable on real estate

( 128,544 ) ( 54,296 ) ( 148,948 )

1 unchanged sentence

2,776,437 2,228,746 1,139,682

Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash

Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash

13,354 ( 1,618 ) ( 50,296 )

3 unchanged sentences

Cash paid for interest $ 448,294 $ 344,725 $ 249,854

Cash (refunds received) paid for income taxes

Cash paid (refunds received) for income taxes

$ 218 $ ( 32 ) $ 225

Non-Cash Investment Activities:

Non-Cash Investing Activities:

Non-cash consideration for acquisition of business $ 36,259 $ — $ —

Consolidation of assets acquired in business combination $ 188,102 $ — $ —

Consolidation of liabilities assumed in business combination $ 142,714 $ — $ —

De-consolidation of real estate held in Consolidated VIEs

11 unchanged sentences

$ — $ 2,640 $ —

Transfer from residential loans held for sale to residential loans $ 474,922 $ — $ —

Distribution of mortgage servicing rights from equity investment

12 unchanged sentences

December 31, 2025

New York Mortgage Trust, Inc., together with its consolidated subsidiaries (“NYMT,” “we,” “our,” or the “Company”), is an internally-managed real estate investment trust ("REIT") 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.

The Company conducts its business through the parent company, New York Mortgage Trust, Inc., and several subsidiaries, including taxable REIT subsidiaries (“TRSs”), qualified REIT subsidiaries (“QRSs”) and special purpose subsidiaries established for securitization purposes.

Adamas Trust, Inc., together with its consolidated subsidiaries (“Adamas,” “we,” “our,” or the “Company”), is an internally-managed real estate investment trust ("REIT") 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 Loans, LLC ("Constructive"), we also originate business purpose loans for residential real estate investors.

On September 3, 2025, the Company changed its name from New York Mortgage Trust, Inc.

to Adamas Trust, Inc.

The Company conducts its business through the parent company, Adamas Trust, Inc., and several subsidiaries, including taxable REIT subsidiaries (“TRSs”), qualified REIT subsidiaries (“QRSs”) and special purpose subsidiaries established for securitization purposes.

The Company consolidates all of its subsidiaries under generally accepted accounting principles in the United States of America (“GAAP”).

1 unchanged sentence

federal income tax purposes.

As such, the Company will generally not be subject to federal income taxes on that portion of its income that is distributed to stockholders if it distributes at least 90% of its REIT taxable income to its stockholders by the due date of its federal income tax return and complies with various other requirements.

As such, the Company will generally not be subject to U.S.

federal income taxes on that portion of its income that is distributed to stockholders if it distributes at least 90% of its REIT taxable income to its stockholders by the due date of its U.S.

federal income tax return and complies with various other requirements.

Summary of Significant Accounting Policies

10 unchanged sentences

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

“TBAs” refers to to-be-announced securities;

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

16 unchanged sentences

In particular, prior period disclosures have been adjusted for the aforementioned Reverse Stock Split.

Additionally, prior period disclosures have been conformed to the current period presentation of net loss from real estate.

Beginning in the third quarter of 2023, the components of net loss from real estate, inclusive of rental income and other real estate income and interest expense, mortgages payable on real estate, depreciation and amortization and other real estate expenses, are presented as total net loss from real estate on the Company's consolidated statements of operations.

Previously, rental income, other real estate income and total income from real estate was presented in other income (loss) and interest expense, mortgages payable on real estate, depreciation and amortization, other real estate expenses and total expenses related to real estate were presented in general, administrative and operating expenses on the Company's consolidated statements of operations.

Also beginning in the third quarter of 2023, unrealized gains (losses) and realized gains (losses) on derivative instruments are presented in gains (losses) on derivative instruments, net on the Company's consolidated statements of operations.

Previously, unrealized gains (losses) on derivative instruments were presented in unrealized gains (losses), net and realized gains (losses) on derivative instruments were presented in realized gains (losses), net on the Company's consolidated statements of operations.

Principles of Consolidation and Variable Interest Entities – The accompanying consolidated financial statements of the Company include the accounts of all its subsidiaries which are majority-owned, controlled by the Company or a VIE where the Company is the primary beneficiary.

10 unchanged sentences

See " Redeemable Non-Controlling Interest in Consolidated VIEs " below for further discussion of redeemable non-controlling interest in Consolidated VIEs.

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 the accompanying consolidated balance sheets pursuant to a fair value option election in accordance with ASC 825, Financial Instruments (“ASC 825”).

Changes in fair value are recorded in current period earnings in unrealized gains (losses), net on the accompanying consolidated statements of operations.

Residential loans include seasoned re-performing and non-performing residential loans held in Consolidated SLST.

Based on a number of factors, management determined that the Company was the primary beneficiary of Consolidated SLST and met the criteria for consolidation and, accordingly, has consolidated the securitizations, including their assets, liabilities, income and expenses in our financial statements.

The Company has elected the fair value option on each of the assets and liabilities held within Consolidated SLST, which requires that changes in valuations be reflected on the accompanying consolidated statements of operations.

In accordance with ASC 810, the Company measures both the financial assets and financial liabilities of a qualifying consolidated collateralized financing entity (“CFE”) using the fair value of either the CFE’s financial assets or financial liabilities, whichever is more observable.

As the related securitization trusts are considered qualifying CFEs, the Company determines the fair value of the residential loans held in Consolidated SLST based on the fair value of its respective residential CDOs and the Company's investment in the respective securitizations (eliminated in consolidation in accordance with GAAP), as the fair value of these instruments is more observable.

Interest income is accrued and recognized as revenue when earned according to the terms of the residential loans and when, in the opinion of management, it is collectible.

Residential loans are considered past due when they are 30 days past their contractual due date, and are placed on nonaccrual status when delinquent for more than 90 days or when, in management's opinion, the interest is not collectible in the normal course of business.

Interest accrued but not yet collected at the time loans are placed on nonaccrual status is reversed and subsequently recognized only to the extent it is received in cash or until it qualifies for return to accrual status.

Loans are restored to accrual status only when contractually current or the collection of future payments is reasonably assured.

Premiums and discounts associated with the purchase of residential loans are amortized or accreted into interest income over the life of the related loan using the effective interest method.

Any premium amortization or discount accretion is reflected as a component of interest income on the accompanying consolidated statements of operations.

Real estate owned property acquired through, or in lieu of, foreclosure of residential loans is initially recorded at fair value, and subsequently reported at the lower of its carrying amount or fair value (less estimated cost to sell).

Changes in the fair value of a real estate owned property that has a fair value at or below its carrying amount are recorded in other loss on the accompanying consolidated statements of operations.

Fair values are determined using available market quotes, appraisals, broker price opinions, comparable properties, or other indications of value.

Investment Securities Available for Sale – The Company has elected the fair value option for all investment securities available for sale.

Investment Securities Available for Sale – The Company has elected the fair value option for all investment securities available for sale in accordance with ASC 825, Financial Instruments (“ASC 825”).

The fair value option was elected for investment securities to provide stockholders and others who rely on our financial statements with a more complete and accurate understanding of our economic performance.

20 unchanged sentences

If the fair value of CECL Securities was less than amortized cost as of a balance sheet date, the Company evaluated the CECL Securities for impairment as a result of credit losses.

During the year ended December 31, 2023, the Company determined that no allowance for credit losses was necessary.

There were no CECL Securities as of December 31, 2024.

Multi-Family Loans – Multi-family loans include preferred equity investments in, and mezzanine loans to, entities that have multi-family real estate assets.

The Company evaluated its CECL Securities that were in an unrealized loss position as of December 31, 2023 and determined that no allowance for credit losses was necessary.

There were no CECL Securities as of December 31, 2025 and 2024.

Residential Loans and Residential Loans Held for Sale – The Company’s acquired and originated residential loans, including performing, re-performing and non-performing residential loans and business purpose loans, are presented at fair value on the accompanying consolidated balance sheets pursuant to a fair value option election in accordance with ASC 825.

Loans that the Company has the intent and ability to hold for the foreseeable future or to maturity/payoff are classified as residential loans.

Changes in fair value of residential loans are recorded in current period earnings in unrealized gains (losses), net on the accompanying consolidated statements of operations.

Loans originated with the intent to sell to third-party investors in the secondary market are classified as residential loans held for sale.

Changes in fair value of residential loans held for sale and gain or loss on sale are recorded in current period earnings in mortgage banking activities, net on the Company’s consolidated statements of operations.

Residential loans include seasoned re-performing and non-performing residential loans held in Consolidated SLST.

Interest income is accrued and recognized as revenue when earned according to the terms of the residential loans and when, in the opinion of management, it is collectible.

Loans are restored to accrual status only when contractually current or the collection of future payments is reasonably assured.

Premiums and discounts associated with the purchase of residential loans are amortized or accreted into interest income over the life of the related loan using the effective interest method.

Any premium amortization or discount accretion is reflected as a component of interest income on the accompanying consolidated statements of operations.

Loan origination and other fees generally represent per-loan fee amounts that are either based upon a percentage of the original principal balance of an originated business purpose loan or are a standard fee amount, are recognized as revenue at the time the related loans are funded and are reported in mortgage banking activities, net on the Company's consolidated statements of operations as a result of the fair value option election.

Direct loan origination costs incurred in originating business purpose loans are immediately recognized in loan origination costs on the Company's consolidated statements of operations as a result of the fair value option election.

Changes in the fair value of a real estate owned property that has a fair value at or below its carrying amount are recorded in other loss on the accompanying consolidated statements of operations.

Fair values are determined using available market quotes, appraisals, broker price opinions, comparable properties, or other indications of value.

Multi-Family Loans – Multi-family loans include preferred equity investments in entities that have multi-family real estate assets.

A preferred equity investment is an equity investment in the entity that owns the underlying property.

1 unchanged sentence

In addition, preferred equity holders may be able to enhance their position and protect their equity position with covenants that limit the entity’s activities and grant the holder the exclusive right to control the property after an event of default.

Mezzanine loans are secured by a pledge of the borrower’s equity ownership in the property.

Unlike a mortgage, this loan does not represent a lien on the property.

Therefore, it is always junior and subordinate to any first lien as well as second liens, if applicable, on the property.

These loans are senior to any preferred equity or common equity interests in the entity that owns the property.

The Company has evaluated its preferred equity and mezzanine loan investments for accounting treatment as loans versus equity investments utilizing the guidance provided by the Acquisition, Development and Construction Arrangements Subsection of ASC 310, Receivables .

Preferred equity and mezzanine loan investments, for which the characteristics, facts and circumstances indicate that loan accounting treatment is appropriate, are stated at fair value.

The Company elected the fair value option for its preferred equity and mezzanine loan investments because the Company determined that such presentation represents the underlying economics of the respective investment.

The Company has evaluated its preferred equity investments for accounting treatment as loans versus equity investments utilizing the guidance provided by the Acquisition, Development and Construction Arrangements Subsection of ASC 310, Receivables .

Preferred equity investments, for which the characteristics, facts and circumstances indicate that loan accounting treatment is appropriate, are stated at fair value.

The Company elected the fair value option for its preferred equity investments because the Company determined that such presentation represents the underlying economics of the respective investment.

Changes in fair value are recorded in current period earnings in unrealized gains (losses), net on the accompanying consolidated statements of operations.

48 unchanged sentences

The Company maintains its cash and cash equivalents in highly rated financial institutions, and at times these balances exceed insurable amounts.

Business Combinations – The Company accounts for business combinations by applying the acquisition method in accordance with ASC 805.

Transaction costs related to acquisition of a business are expensed as incurred and excluded from the fair value of consideration transferred.

The identifiable assets acquired, liabilities assumed and non-controlling interests, if any, in an acquired entity are recognized and measured at their estimated fair values.

The excess of the fair value of consideration transferred over the fair values of identifiable assets acquired, liabilities assumed and non-controlling interests, if any, in an acquired entity, net of fair value of any previously held interest in the acquired entity, is recorded as goodwill.

Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets and liabilities.

Net cash paid to acquire a business is classified as investing activities on the accompanying consolidated statements of cash flows.

Amounts held back from cash consideration, if any, are recorded as liabilities on the accompanying consolidated balance sheets.

On July 15, 2025, the Company, through a wholly-owned subsidiary, 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, thereby increasing the Company's ownership of Constructive to 100 % ( see Note 24 ).

The transaction was accounted for by applying the acquisition method for business acquisitions under ASC 805.

Goodwill – Goodwill represents the excess of the fair value of consideration transferred in a business combination over the fair values of identifiable assets acquired, liabilities assumed and non-controlling interests, if any, in an acquired entity, net of fair value of any previously held interest in the acquired entity.

Goodwill is not amortized but is evaluated for impairment on an annual basis, or more frequently if the Company believes indicators of impairment exist, by initially performing a qualitative screen and, if necessary, then comparing fair value of the reporting unit to its carrying value, including goodwill.

If the fair value of the reporting unit is less than the carrying value, an impairment charge for the amount by which carrying amount exceeds the reporting unit’s fair value (in an amount not to exceed the total amount of goodwill allocated to the reporting unit) is recognized.

The Company has elected October 1 of each fiscal year as the annual goodwill impairment evaluation date and no impairment has been recorded since goodwill was initially recognized.

Intangible Assets – Intangible assets consisting of acquired trade name, acquired technology and acquired in-place leases with useful lives ranging from 5 months to 11 years are included in other assets on the accompanying consolidated balance sheets.

2 unchanged sentences

See Real Estate, Net for further discussion of acquired in-place lease intangible assets.

Derivative Financial Instruments – The Company enters into various types of derivative financial instruments in connection with its risk management activities which are recorded on the accompanying consolidated balance sheets as assets or liabilities at fair value in accordance with ASC 815, Derivatives and Hedging (“ASC 815”).

Changes in fair value are accounted for depending on the use of the derivative financial instruments and whether they qualify for hedge accounting treatment.

The Company elected not to apply hedge accounting for its derivative financial instruments;

Derivative Instruments – The Company enters into various types of derivative instruments in connection with its risk management activities which are recorded on the accompanying consolidated balance sheets as assets or liabilities at fair value in accordance with ASC 815, Derivatives and Hedging (“ASC 815”).

Changes in fair value are accounted for depending on the use of the derivative instruments and whether they qualify for hedge accounting treatment.

The Company elected not to apply hedge accounting for its derivative instruments;

accordingly, all changes in fair value are reported on the accompanying consolidated statements of operations as gains (losses) on derivative instruments, net.

4 unchanged sentences

Interest rate swaps change in value with movements in interest rates.

The Company has entered into, and may in the future enter into, TBAs that 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 and 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 accounts for TBAs (whether net long or net short positions, or collectively “TBA dollar roll positions”) as derivative instruments because it cannot assert that it is probable at inception and throughout the term of an individual TBA transaction that its settlement will result in physical delivery of the underlying Agency RMBS, or that the individual TBA transaction will settle in the shortest period possible.

Dollar roll income is recognized in gains (losses) on derivative instruments, net on the accompanying consolidated statements of operations.

The Company has U.S.

1 unchanged sentence

Treasury securities for future delivery.

Additionally, the Company has commodity future contracts that obligate the Company to sell or buy a specific quantity of a commodity at a predetermined price 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.

3 unchanged sentences

These contracts contain legally enforceable provisions that allow for netting or setting off of all individual derivative receivables and payables with each counterparty and therefore, the fair values of those derivative contracts are reported net by counterparty.

All of the Company’s interest rate swaps, credit default swaps and U.S.

Treasury futures are cleared through two central clearing houses, CME Group Inc.

All of the Company’s interest rate swaps, credit default swaps, U.S.

Treasury futures and commodity futures are cleared through two central clearing houses, CME Group Inc.

("CME Clearing"), which is the parent company of the Chicago Mercantile Exchange Inc., or the Intercontinental Exchange ("ICE").

CME Clearing and ICE serve as the counterparty to every cleared transaction, becoming the buyer to each seller and the seller to each buyer, limiting the credit risk by guaranteeing the financial performance of both parties and netting down exposures.

CME Clearing and ICE require that the Company post an initial margin amount determined by the respective central clearing house, which is generally intended to be set at a level sufficient to protect the exchange from the derivative financial instrument's maximum estimated single-day price movement.

CME Clearing and ICE require that the Company post an initial margin amount determined by the respective central clearing house, which is generally intended to be set at a level sufficient to protect the exchange from the derivative instrument's maximum estimated single-day price movement.

The Company also exchanges variation margin based upon daily changes in fair value, as measured by CME Clearing and ICE.

7 unchanged sentences

The remaining cash flow activity related to derivative instruments is reflected within the net payments received from (made on) derivative instruments and net variation margin received (paid) for derivative instruments line items within the investing activities section of the accompanying consolidated statements of cash flows.

Mortgage Servicing Rights – The Company records MSRs at fair value upon initial recognition.

The Company does not originate or directly service residential loans.

Derivative Instruments – Interest Rate Lock Commitments – 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.

IRLCs are accounted for as derivatives at fair value and changes in fair value are included in mortgage banking activities, net on the accompanying consolidated statements of operations.

Mortgage Servicing Rights – The Company records MSRs, whether acquired or as a result of the sale of loans Constructive originates with servicing retained, at fair value upon initial recognition.

The Company does not directly service residential loans.

Rather, servicing activities are carried out by duly licensed third-party subservicers who perform substantially all servicing functions for the loans underlying MSRs.

4 unchanged sentences

Corresponding costs to service (including subservicing fees) are charged to expense as incurred and included in portfolio operating expenses on the accompanying consolidated statements of operations.

Repurchase Agreements, Residential Loans, Real Estate Owned and Single-family Rental Properties – As of December 31, 2024 and 2023, the Company financed a portion of its residential loans, real estate owned and single-family rental properties through repurchase agreements ( see Note 13 ).

Amounts outstanding under the repurchase agreements generally bear interest rates of a specified margin over various tenors of SOFR or an interest rate floor, as applicable per the terms of the agreements.

The repurchase agreements are treated as collateralized financing transactions and are carried at their contractual amounts, as specified in the respective agreements.

Costs related to the establishment of the repurchase agreements which include 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 accompanying consolidated balance sheets and the deferred charges are amortized as an adjustment to interest expense using the effective interest method, or straight line-method if the result is not materially different, over the term of the respective agreement.

Repurchase Agreements – Investment Securities – The Company finances, or has financed, certain of its investment securities available for sale, certain securities owned in Consolidated SLST and CDOs repurchased from our residential loan securitizations using repurchase agreements.

2 unchanged sentences

Borrowings under repurchase agreements generally bear interest rates of a specified margin over SOFR.

Repurchase Agreements and Warehouse Facilities – Residential Loans, Real Estate Owned and Single-family Rental Properties – As of December 31, 2025 and 2024, the Company financed a portion of its residential loans, real estate owned and single-family rental properties through repurchase agreements and warehouse facilities ( see Note 13 ).

Amounts outstanding under the repurchase agreements and warehouse facilities generally bear interest rates of a specified margin over various tenors of SOFR or an interest rate floor, as applicable per the terms of the agreements.

The repurchase agreements and warehouse facilities are treated as collateralized financing transactions and are carried at their contractual amounts, as specified in the respective agreements.

Costs related to the establishment of the repurchase agreements and warehouse facilities which include underwriting, legal, accounting and other fees are reflected as deferred charges.

Collateralized Debt Obligations – The Company records collateralized debt obligations used to permanently finance the residential loans held in Consolidated SLST, a portion of the Company's net investment in Consolidated SLST and the Company's residential loans held in securitization trusts as debt on the accompanying consolidated balance sheets.

4 unchanged sentences

Interest expense on such CDOs is recorded based on the current stated interest rate and outstanding principal balance in effect and is included in interest expense on the accompanying consolidated statements of operations.

In accordance with ASC 825, costs associated with the issuance of CDOs subject to the fair value election are recognized in earnings as they are incurred and are included in debt issuance costs on the accompanying consolidated statements of operations.

Senior Unsecured Notes – On April 27, 2021, the Company issued its 5.75 % Senior Notes due 2026 (the "2026 Senior Notes") to originate new investments, repay outstanding indebtedness and for general corporate purposes.

The Company evaluated the call option feature of these notes for embedded derivatives in accordance with ASC 815 and determined that the call option feature should not be bifurcated from the notes.

On June 28, 2024, the Company issued its 9.125 % Senior Notes due 2029 (the "2029 Senior Notes") for general corporate purposes, which included acquiring single-family residential assets.

The Company evaluated the call option feature of these notes for embedded derivatives in accordance with ASC 815 and determined that the call option feature should not be bifurcated from the notes.

The Company has elected the fair value option pursuant to ASC 825 with respect to the 2029 Senior Notes because the Company determined that such presentation represents the underlying economics of the respective financing.

Changes in fair value of the 2029 Senior Notes are recorded in current period earnings in unrealized gains (losses), net on the accompanying consolidated statements of operations (or other comprehensive income (loss), to the extent the change results from a change in instrument-specific credit risk).

Interest expense on such 2029 Senior Notes is recorded based on the current stated interest rate and outstanding principal balance in effect and is included in interest expense on the accompanying consolidated statements of operations.

In accordance with ASC 825, costs associated with the issuance of the 2029 Senior Notes are recognized in earnings as they are incurred and are included in debt issuance costs on the accompanying consolidated statements of operations.

Convertible Notes – Prior to December 31, 2021, the Company issued its 6.25 % Senior Convertible Notes due 2022 (the “Convertible Notes”) to finance the acquisition of targeted assets and for general working capital purposes.

The Company evaluated the conversion features of the Convertible Notes for embedded derivatives in accordance with ASC 815 and determined that the conversion features should not be bifurcated from the notes.

The Company redeemed the Convertible Notes at maturity for $ 138.0 million on January 15, 2022.

None of the Convertible Notes were converted prior to maturity.

In accordance with ASC 825, costs associated with the issuance of CDOs subject to the fair value election are recognized in earnings as they are incurred and are included in financing transaction costs on the accompanying consolidated statements of operations.

Senior Unsecured Notes – As of December 31, 2025, the Company had 5.75 % Senior Notes due 2026 (the "2026 Senior Notes"), 9.125 % Senior Notes due 2029 (the "2029 Senior Notes"), 9.125 % Senior Notes due 2030 (the "9.125% 2030 Senior Notes") and 9.875 % Senior Notes due 2030 (the "9.875% 2030 Senior Notes") (collectively, the "Senior Unsecured Notes") outstanding.

The Company evaluated the call option feature of the Senior Unsecured Notes for embedded derivatives in accordance with ASC 815 and determined that the call option features should not be bifurcated from the notes.

The Company has elected the fair value option pursuant to ASC 825 with respect to the 2029 Senior Notes, 9.125% 2030 Senior Notes and 9.875% 2030 Senior Notes because the Company determined that such presentation represents the underlying economics of the respective financings.

Changes in fair value of these notes are recorded in current period earnings in unrealized gains (losses), net on the accompanying consolidated statements of operations (or other comprehensive income (loss), to the extent the change results from a change in instrument-specific credit risk).

Interest expense on such notes is recorded based on the current stated interest rate and outstanding principal balance in effect and is included in interest expense on the accompanying consolidated statements of operations.

In accordance with ASC 825, costs associated with the issuance of these notes are recognized in earnings as they are incurred and are included in financing transaction costs on the accompanying consolidated statements of operations.

Repurchase Reserves for Origination Activity – Constructive routinely sells business purpose loans to third-party investors in the secondary market.

Under customary representations and warranties clauses in the business purpose loan sale agreements, Constructive may be required to repurchase business purpose loans sold or reimburse the investors for credit losses incurred on those loans if a breach of the contractual representations and warranties occurred.

Constructive establishes a loan repurchase reserve liability in an amount equal to management’s estimate of losses on loans for which it could have a repurchase obligation or loss reimbursement.

The estimated liability incorporates historical loss experience, identification of delinquencies, economic trends and market conditions and is included in other liabilities on the accompanying consolidated balance sheets.

Provisions to the business purpose loan repurchase reserve reduce gains recognized on sales of loans and are included in mortgage banking activities, net on the accompanying consolidated statements of operations.

Redeemable Non-Controlling Interest in Consolidated VIEs – The Company evaluates whether non-controlling interests are subject to redemption features outside of its control.

8 unchanged sentences

The Plan qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”).

The Company added all eligible domestic employees of Constructive to the Plan during the year ended December 31, 2025 as a result of the aforementioned business combination.

The Company also introduced an employer contribution to the Plan during the year ended December, 31, 2025 and recognized a cost of approximately $ 0.3 million.

The Company made no contributions to the Plan for the years ended December 31, 2024 and 2023.

8 unchanged sentences

The PSUs also include dividend equivalent rights (“DERs”) which entitle the holders of vested PSUs to receive payments in an amount equal to any dividends paid by the Company in respect of the share of the Company's common stock underlying the vested PSU to which such DER relates.

The Company has granted Restricted Stock Units (“RSUs”) to the Company's executive officers and certain other employees.

The Company has granted Restricted Stock Units (“RSUs”) to the Company's executive officers and certain employees.

The awards were issued pursuant to and are consistent with the terms and conditions of the 2017 Plan and are subject to a service condition, vesting ratably over a three-year period.

7 unchanged sentences

Requirements for qualification as a REIT include various restrictions on ownership of the Company’s stock, requirements concerning distribution of taxable income and certain restrictions on the nature of assets and sources of income.

A REIT must distribute at least 90% of its taxable income to its stockholders, of which 85% plus any undistributed amounts from the prior year must be distributed within the taxable year in order to avoid the imposition of an excise tax.

Distribution of the remaining balance may extend until timely filing of the Company’s tax return in the subsequent taxable year.

12 unchanged sentences

Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company.

Segment Reporting – ASC 280, Segment Reporting ("ASC 280"), is the authoritative guidance for the way public entities report information about operating segments in their annual financial statements.

We are a REIT focused on the business of acquiring, investing in, financing and managing primarily mortgage-related single-family and multi-family residential assets and currently operate in only one reportable segment.

Adoption of Segment Reporting (Topic 280)

On January 1, 2024, the Company adopted the annual disclosure requirements of ASU 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures ("ASU 2023-07") .

These amendments required initial and incremental segment disclosures for companies with a single reportable segment on an annual and interim basis.

ASU 2023-07 is also effective for interim periods within fiscal years beginning after December 15, 2024.

See Note 24 for the Company's Segment Reporting disclosure.

Segment Reporting – As of December 31, 2025, the Company operates in two reportable segments:

(i) investment portfolio and (ii) Constructive.

The accounting policies applied to the segments are the same as those described herein, with the exception of allocations of certain corporate expenses not directly assigned or allocated to one of the Company's two reportable segments.

Adoption of Income Taxes (Topic 740):

Improvements to Income Tax Disclosures

On January 1, 2025, the Company adopted the annual disclosure requirements of ASU 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures ("ASU 2023-09") .

These amendments required enhanced disclosures in connection with an entity's effective tax rate reconciliation and additional disclosures about income taxes paid.

See Note 21 for the Company's income tax disclosures.

Summary of Recent Accounting Pronouncements

In November 2024, the FASB issued Accounting Standards Update ("ASU") 2024-04, Debt — Debt Conversion and Other Topics ("ASU 2024-04").

ASU 2024-04 clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion.

ASU 2024-04 is effective for annual periods beginning after December 15, 2025, and interim periods within those annual periods.

The Company redeemed its Convertible Notes on January 15, 2022.

In November 2024, the FASB issued ASU 2024-03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures ("ASU 2024-03").

In November 2024, the FASB issued Accounting Standards Update ("ASU") 2024-03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures ("ASU 2024-03").

ASU 2024-03 requires a public business entity to disclose specific information about certain costs and expenses in the notes to financial statements.

2 unchanged sentences

The Company expects that the adoption of ASU 2024-03 will result in additional disclosures in its notes to consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures ("ASU 2023-09").

ASU 2023-09 requires enhanced disclosures in connection with an entity's effective tax rate reconciliation and additional disclosures about income taxes paid.

ASU 2023-09 is effective for annual periods beginning after December 15, 2024.

The Company expects that the adoption of ASU 2023-09 will result in additional income tax disclosures in its notes to consolidated financial statements.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848):

Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04").

ASU 2020-04 provides optional expedients and exceptions to GAAP requirements for modifications to debt agreements, leases, derivatives and other contracts, related to the expected market transition from LIBOR, and certain other floating rate benchmark indices, or collectively, IBORs, to alternative reference rates.

ASU 2020-04 generally considers contract modifications related to reference rate reform to be an event that does not require contract remeasurement at the modification date nor a reassessment of a previous accounting determination.

In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848):

Deferral of the Sunset Date of Topic 848 ("ASU 2022-06"), which allows ASU 2020-04 to be adopted and applied prospectively to contract modifications made on or before December 31, 2024.

In light of the cessation of the publication of LIBOR after June 30, 2023, the Company’s significant contracts that were indexed to LIBOR have been amended to transition to an alternative benchmark and any other unmodified agreements that incorporate LIBOR as the referenced rate have provisions in place that provide for identification of an alternative benchmark or specify an alternative benchmark, or by operation of law specify an alternative benchmark, to LIBOR upon its phase-out.

Residential Loans, at Fair Value

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 its consolidated balance sheets as a result of a fair value election.

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 presents t he Company’s residential loans, at fair value, which consist of residential loans held by the Company, Consolidated SLST and other securitization trusts, as of December 31, 2024 and 2023, respectively (dollar amounts in thousands):

December 31, 2024 December 31, 2023

Residential loans (1)

Consolidated SLST (2)

Residential loans held in securitization trusts (3)

Total Residential loans (1)

Consolidated SLST (2)

Residential loans held in securitization trusts (3)

Principal $ 652,642 $ 1,111,633 $ 2,365,060 $ 4,129,335 $ 891,283 $ 892,546 $ 1,609,006 $ 3,392,835

( 1,750 ) ( 24,303 ) ( 48,702 ) ( 74,755 ) ( 22,667 ) ( 7,418 ) ( 55,709 ) ( 85,794 )

Unrealized losses

( 18,626 ) ( 121,658 ) ( 72,558 ) ( 212,842 ) ( 41,081 ) ( 130,268 ) ( 51,389 ) ( 222,738 )

Carrying value $ 632,266 $ 965,672 $ 2,243,800 $ 3,841,738 $ 827,535 $ 754,860 $ 1,501,908 $ 3,084,303

(1) Certain of the Company's residential loans, at fair value are pledged as collateral for repurchase agreements as of December 31, 2024 and 2023 ( see Note 13) .

(2) The Company invests in first loss subordinated securities and certain IOs issued by Freddie Mac-sponsored residential loan securitizations.

In accordance with GAAP, the Company has consolidated the underlying seasoned re-performing and non-performing residential loans held in the securitizations and the CDOs issued to permanently finance these residential loans, representing Consolidated SLST.

Consolidated SLST CDOs are included in collateralized debt obligations on the Company's consolidated balance sheets ( see Note 14 ).

(3) The Company's residential loans held in securitization trusts are pledged as collateral for CDOs issued by the Company.

These CDOs are accounted for as financings and included in collateralized debt obligations on the Company's consolidated balance sheets ( see Note 14) .

The following table presents the unrealized gains (losses), net attributable to residential loans, at fair value for the years ended December 31, 2024, 2023 and 2022, respectively (dollar amounts in thousands):

For the Years Ended December 31,

2024 2023 2022

Residential loans Consolidated SLST (1)

Residential loans held in securitization trusts Residential loans Consolidated SLST (1)

Residential loans held in securitization trusts

Unrealized gains (losses), net

$ 16,968 $ 8,611 $ ( 15,683 ) $ 6,786 $ ( 8,086 ) $ 63,005 $ ( 115,269 ) $ ( 124,834 ) $ ( 174,401 )

(1) In accordance with the practical expedient in ASC 810, the Company determines the fair value of the residential loans held in Consolidated SLST based on the fair value of the CDOs issued by Consolidated SLST, including investment securities we own, as the fair value of these instruments is more observable ( see Note 17 ) .

See Note 7 for unrealized gains (losses), net recognized by the Company on its investment in Consolidated SLST, which include unrealized gains (losses) on the residential loans held in Consolidated SLST presented in the table above and unrealized gains (losses) on the CDOs issued by Consolidated SLST.

The Company recognized $ 2.2 million, $ 4.6 million and $ 10.0 million of net realized gains on the payoff of residential loans, at fair value during the years ended December 31, 2024, 2023 and 2022, respectively.

The Company also recognized $ 1.0 million and $ 0.8 million of net realized losses on the sale of residential loans, at fair value during the years ended December 31, 2024 and 2023, respectively.

The Company did not sell any residential loans during the year ended December 31, 2022.

The geographic concentrations of credit risk exceeding 5% of the unpaid principal balance of residential loans, at fair value as of December 31, 2024 and 2023, respectively, are as follows:

December 31, 2024 December 31, 2023

Residential loans Consolidated SLST Residential loans held in securitization trusts Residential loans Consolidated SLST Residential loans held in securitization trusts

California 23.0 % 11.7 % 20.2 % 22.4 % 10.7 % 18.4 %

Florida 10.4 % 9.1 % 12.2 % 15.5 % 10.3 % 11.0 %

8.0 % 6.8 % 5.2 % 4.9 % 7.6 % 6.0 %

6.6 % 10.8 % 6.6 % 7.0 % 10.0 % 8.5 %

6.2 % 4.4 % 7.9 % 8.1 % 3.9 % 7.1 %

5.1 % 3.9 % 3.8 % 2.2 % 4.1 % 4.1 %

2.2 % 6.3 % 3.1 % 3.0 % 7.2 % 3.5 %

The following table presents the fair value and aggregate unpaid principal balance of the Company’s residential loans and residential loans held in securitization trusts in non-accrual status as of December 31, 2024 and 2023, respectively (dollar amounts in thousands):

Greater than 90 days past due Less than 90 days past due

Fair Value Unpaid Principal Balance Fair Value Unpaid Principal Balance

December 31, 2024 $ 159,558 $ 183,067 $ 8,098 $ 8,749

December 31, 2023 199,485 220,577 9,362 9,948

Formal foreclosure proceedings were in process with respect to residential loans with an aggregate fair value of $ 136.9 million and an aggregate unpaid principal balance of $ 156.8 million as of December 31, 2024.

Residential loans held in Consolidated SLST with an aggregate unpaid principal balance of $ 117.1 million and $ 84.6 million were 90 days or more delinquent as of December 31, 2024 and 2023, respectively.

In addition, formal foreclosure proceedings were in process with respect to $ 39.6 million of residential loans held in Consolidated SLST as of December 31, 2024.

Investment Securities Available For Sale, at Fair Value

The Company accounts for certain of its investment securities available for sale using the fair value election pursuant to ASC 825, where changes in fair value are recorded in unrealized (losses) gains, net on the Company's consolidated statements of operations.

The Company also had investment securities available for sale where the fair value option had not been elected, which we refer to as CECL Securities.

CECL Securities are reported at fair value with unrealized gains and losses recorded in other comprehensive income (loss) on the Company's consolidated statements of comprehensive loss.

The Company accounts for its investment securities available for sale using the fair value election pursuant to ASC 825, where changes in fair value are recorded in unrealized gains (losses), net on the Company's consolidated statements of operations.

The Company's investment securities available for sale consisted of the following as of December 31, 2025 and 2024, respectively (dollar amounts in thousands):

2 unchanged sentences

Gains Losses Gains Losses

Fair Value Option

Fannie Mae $ 3,445,953 $ 71,677 $ ( 420 ) $ 3,517,210 $ 1,483,619 $ 7,819 $ ( 7,991 ) $ 1,483,447

17 unchanged sentences

246,298 1,652 ( 2,237 ) 245,713 657,659 — ( 35,614 ) 622,045

Total investment securities available for sale - fair value option 3,886,897 18,959 ( 77,312 ) 3,828,544 1,983,318 36,781 ( 6,313 ) 2,013,786

CECL Securities

Non-Agency RMBS — — — — 35 — ( 4 ) 31

Total investment securities available for sale - CECL Securities — — — — 35 — ( 4 ) 31

Total $ 6,789,275 $ 135,424 $ ( 19,918 ) $ 6,904,781 $ 3,886,897 $ 18,959 $ ( 77,312 ) $ 3,828,544

Accrued interest receivable for investment securities available for sale in the amount of $ 34.0 million and $ 22.4 million as of December 31, 2025 and 2024, respectively, is included in other assets on the Company's consolidated balance sheets.

For the years ended December 31, 2024, 2023 and 2022, the Company recognized $ 88.8 million in net unrealized losses, $ 36.3 million in net unrealized gains and $ 22.6 million in net unrealized losses on investment securities available for sale accounted for under the fair value option, respectively.

For the years ended December 31, 2025, 2024 and 2023, the Company recognized $ 173.9 million in net unrealized gains, $ 88.8 million in net unrealized losses and $ 36.3 million in net unrealized gains on investment securities available for sale, respectively.

The Company's investment securities available for sale pledged as collateral against interest rate swap agreements and repurchase agreements are included in investment securities available for sale on the accompanying consolidated balance sheets with the fair value of securities pledged disclosed in Notes 10 and 13 , respectively.

3 unchanged sentences

Sales Proceeds Realized Gains Realized Losses Net Realized Gains (Losses)

Treasury securities

$ 658,763 $ 3,700 $ ( 30,570 ) ( 26,870 )

61,138 1,177 — 1,177

Non-Agency RMBS

3 unchanged sentences

Sales Proceeds Realized Gains Realized Losses Net Realized Gains (Losses)

$ 595 $ — $ ( 41 ) $ ( 41 )

30,419 — ( 1,387 ) ( 1,387 )

Non-Agency RMBS

3 unchanged sentences

Sales Proceeds Realized Gains Realized Losses Net Realized Gains (Losses)

Non-Agency RMBS

$ 595 $ — $ ( 41 ) $ ( 41 )

30,419 — ( 1,387 ) ( 1,387 )

Treasury Securities

24,848 — ( 31 ) ( 31 )

Non-Agency RMBS 33,676 1,472 ( 12,644 ) ( 11,172 )

Total $ 64,690 $ 1,472 $ ( 14,072 ) $ ( 12,600 )

The Company recognized write-downs of fair value option non-Agency RMBS for a loss of $ 1.2 million and $ 1.7 million for the years ended December 31, 2024 and 2023, respectively .

The Company did not recognize any write-downs for the year ended December 31, 2022 .

The Company recognized write-downs of certain Agency RMBS IOs for a loss of $ 9.1 million for the year ended December 31, 2025, which is included in realized losses, net on the accompanying consolidated statements of operations.

The Company recognized write-downs of non-Agency RMBS for a loss of $ 1.2 million and $ 1.7 million for the years ended December 31, 2024 and 2023, respectively .

Weighted Average Life

7 unchanged sentences

Total $ 6,904,781 $ 3,828,544

Unrealized Losses in Other Comprehensive Income (Loss)

The Company had no CECL Securities as of December 31, 2024.

The Company evaluated its CECL Securities that were in an unrealized loss position as of December 31, 2023 and determined that no allowance for credit losses was necessary.

The Company did not recognize credit losses for its CECL Securities through earnings for the years ended December 31, 2024, 2023 and 2022.

The following table presents the Company’s CECL securities in an unrealized loss position with no credit losses reported, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2023 (dollar amounts in thousands):

December 31, 2023 Less than 12 Months Greater than 12 months Total

Losses Carrying

Non-Agency RMBS $ — $ — $ 31 $ ( 4 ) $ 31 $ ( 4 )

Residential Loans and Residential Loans Held for Sale, at Fair Value

The Company accumulates its residential loan portfolio through acquisitions of performing, re-performing and non-performing residential loans and business purpose loans and originations of business purpose loans.

It also invests in first loss subordinated securities and certain IOs issued by Freddie Mac-sponsored residential loan securitizations.

The Company also originates business purpose loans for sale to residential real estate investors through Constructive.

Residential loans are presented at fair value on the Company's consolidated balance sheets as a result of a fair value election.

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 tables present t he Company’s residential loans, at fair value, which consist of residential loans held by the Company, Consolidated SLST and other securitization trusts and residential loans held for sale, as of December 31, 2025 and 2024, respectively (dollar amounts in thousands):

December 31, 2025

Residential loans (1)

Consolidated SLST (2)

Residential loans held in securitization trusts (3)

Total Residential loans

Residential loans held for sale (4)

Principal $ 575,565 $ 1,307,770 $ 2,656,765 $ 4,540,100 $ 78,915 $ 4,619,015

Premium / (Discount)

3,389 ( 61,606 ) ( 27,107 ) ( 85,324 ) — ( 85,324 )

Credit risk associated with non-Agency RMBS was regularly assessed as new information regarding the underlying collateral became available and based on updated estimates of cash flows generated by the underlying collateral.

In performing its assessment, the Company considered past and expected future performance of the underlying collateral, including timing of expected future cash flows, prepayment rates, default rates, loss severities, delinquency rates, current levels of subordination, volatility of the security's fair value, temporary declines in liquidity for the asset class and interest rate changes since purchase.

Change in fair value

5,009 ( 80,487 ) ( 21,123 ) ( 96,601 ) 1,792 ( 94,809 )

Carrying value $ 583,963 $ 1,165,677 $ 2,608,535 $ 4,358,175 $ 80,707 $ 4,438,882

December 31, 2024

Residential loans (1)

Consolidated SLST (2)

Residential loans held in securitization trusts (3)

Total Residential loans

Principal $ 652,642 $ 1,111,633 $ 2,365,060 $ 4,129,335

( 1,750 ) ( 24,303 ) ( 48,702 ) ( 74,755 )

Change in fair value

( 18,626 ) ( 121,658 ) ( 72,558 ) ( 212,842 )

Carrying value $ 632,266 $ 965,672 $ 2,243,800 $ 3,841,738

(1) Certain of the Company's residential loans, at fair value are pledged as collateral for repurchase agreements as of December 31, 2025 and 2024 ( see Note 13) .

(2) The Company has consolidated the underlying seasoned re-performing and non-performing residential loans held in Consolidated SLST and the CDOs issued to permanently finance these residential loans.

Consolidated SLST CDOs are included in collateralized debt obligations on the Company's consolidated balance sheets ( see Note 14 ).

During the years ended December 31, 2025 and 2024, the Company purchased additional first loss subordinated securities issued from securitizations that it determined to consolidate as Consolidated SLST.

As a result, the Company consolidated the assets and liabilities of the securitizations ( see Note 7).

(3) The Company's residential loans held in securitization trusts are pledged as collateral for CDOs issued by the Company.

These CDOs are accounted for as financings and included in collateralized debt obligations on the Company's consolidated balance sheets ( see Note 14) .

(4) Certain of the Company's residential loans held for sale, at fair value are pledged as collateral for repurchase agreements and warehouse facilities as of December 31, 2025 ( see Note 13 ).

Residential Loans, at Fair Value

The following table presents the unrealized gains (losses), net attributable to residential loans, at fair value for the years ended December 31, 2025, 2024 and 2023, respectively (dollar amounts in thousands):

For the Years Ended December 31,

2025 2024 2023

Residential loans Consolidated SLST (1)

Residential loans held in securitization trusts Residential loans Consolidated SLST (1)

Residential loans held in securitization trusts

Unrealized gains (losses), net

$ 20,885 $ 41,170 $ 43,290 $ 16,968 $ 8,611 $ ( 15,683 ) $ 6,786 $ ( 8,086 ) $ 63,005

The Company recognized $ 6.2 million of net realized losses, and $ 2.2 million and $ 4.6 million of net realized gains on the payoff of residential loans, at fair value during the years ended December 31, 2025, 2024 and 2023, respectively.

The Company also recognized $ 3.3 million of net realized gains, and $ 1.0 million and $ 0.8 million of net realized losses on the sale of residential loans, at fair value during the years ended December 31, 2025, 2024 and 2023, respectively.

The geographic concentrations of credit risk exceeding 5% of the unpaid principal balance of residential loans, at fair value as of December 31, 2025 and 2024, respectively, are as follows:

December 31, 2025 December 31, 2024

Residential loans Consolidated SLST Residential loans held in securitization trusts Residential loans Consolidated SLST Residential loans held in securitization trusts

10.7 % 3.5 % 3.9 % 3.6 % 1.6 % 2.0 %

Pennsylvania 10.1 % 3.8 % 5.5 % 5.1 % 3.9 % 3.8 %

New Jersey 8.9 % 6.3 % 6.4 % 8.0 % 6.8 % 5.2 %

7.0 % 8.6 % 10.1 % 10.4 % 9.1 % 12.2 %

6.7 % 10.7 % 6.6 % 6.6 % 10.8 % 6.6 %

5.2 % 4.4 % 6.7 % 6.2 % 4.4 % 7.9 %

3.6 % 7.4 % 3.3 % 2.2 % 6.3 % 3.1 %

3.4 % 11.2 % 16.8 % 23.0 % 11.7 % 20.2 %

The following table presents the fair value and aggregate unpaid principal balance of the Company’s residential loans and residential loans held in securitization trusts in non-accrual status as of December 31, 2025 and 2024, respectively (dollar amounts in thousands):

Greater than 90 days past due Less than 90 days past due

Fair Value Unpaid Principal Balance Fair Value Unpaid Principal Balance

December 31, 2025 $ 101,757 $ 118,957 $ 1,977 $ 2,303

December 31, 2024 159,558 183,067 8,098 8,749

Formal foreclosure proceedings were in process with respect to residential loans with an aggregate fair value of $ 79.0 million and an aggregate unpaid principal balance of $ 94.1 million as of December 31, 2025.

Residential loans held in Consolidated SLST with an aggregate unpaid principal balance of $ 134.7 million and $ 117.1 million were 90 days or more delinquent as of December 31, 2025 and 2024, respectively.

In addition, formal foreclosure proceedings were in process with respect to residential loans held in Consolidated SLST with an aggregate unpaid principal balance of $ 51.3 million as of December 31, 2025.

Residential Loans Held for Sale, at Fair Value

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.

Residential loans held for sale are presented at fair value on the Company's consolidated balance sheets as a result of a fair value election.

Subsequent changes in fair value are recorded in current period earnings and presented in mortgage banking activities, net on the Company’s consolidated statements of operations.

The following table presents the activity of residential loans held for sale from July 15, 2025, the date of the Company's acquisition and consolidation of Constructive, through December 31, 2025 (dollar amounts in thousands):

Principal balance of loans acquired through business combination

Principal balance of loans originated

Principal balance of loans sold to third parties

Proceeds from repayments

Principal balance of loans repurchased

Principal balance of loans transferred from residential loans held for sale to residential loans

Principal balance as of December 31, 2025

The geographic concentrations of credit risk exceeding 5% of the unpaid principal balance of residential loans held for sale, at fair value as of December 31, 2025 are as follows:

December 31, 2025

Mortgage Banking Activities, Net

The following table summarizes the components of mortgage banking activities, net for the period from July 15, 2025, the date of the Company's acquisition and consolidation of Constructive through December 31, 2025 (dollar amounts in thousands):

Residential loan origination and other fees

Gains on residential loans held for sale, net (1)

Mortgage banking activities, net

(1) Includes gains on sale and unrealized gains, net of provision for loan repurchases, and gains (losses) on interest rate lock commitments.

Interest rate lock commitments are accounted for by the Company as derivative instruments ( see Note 10 ).

Multi-family Loans, at Fair Value

The Company's multi-family loans consisting of its preferred equity in, and mezzanine loans to, entities that have multi-family real estate assets are presented at fair value on the Company's consolidated balance sheets as a result of a fair value election.

Accordingly, changes in fair value are presented in unrealized (losses) gains, net on the Company's consolidated statements of operations.

The Company's multi-family loans consisting of its preferred equity in entities that have multi-family real estate assets are presented at fair value on the Company's consolidated balance sheets as a result of a fair value election.

Accordingly, changes in fair value are presented in unrealized gains (losses), net on the Company's consolidated statements of operations.

Multi-family loans consist of the following as of December 31, 2025 and 2024, respectively (dollar amounts in thousands):

1 unchanged sentence

Investment amount $ 59,102 $ 90,485

Unrealized (losses) gains

Unrealized losses, net

( 3,626 ) ( 4,293 )

Total, at Fair Value $ 55,476 $ 86,192

For the years ended December 31, 2024, 2023 and 2022, the Company recognized $ 4.7 million in net unrealized losses, $ 1.1 million in net unrealized gains and $ 2.7 million in net unrealized losses on multi-family loans, respectively.

The table below presents the fair value and aggregate unpaid principal balance of the Company's multi-family loan in non-accrual status as of December 31, 2024 and 2023, respectively (dollar amounts in thousands):

December 31, 2024 December 31, 2023

For the years ended December 31, 2025, 2024 and 2023, the Company recognized $ 0.6 million in net unrealized gains, $ 4.7 million in net unrealized losses and $ 1.1 million in net unrealized gains on multi-family loans, respectively.

The table below presents the fair value and aggregate unpaid principal balance of the Company's multi-family loan in non-accrual status as of December 31, 2025 and 2024 (dollar amounts in thousands):

Days Late Fair Value (1)

Unpaid Principal Balance Fair Value Unpaid Principal Balance

Unpaid Principal Balance

90 + $ — $ 3,363

(1) As of December 31, 2024, the Company has reduced the fair value of the multi-family loan to zero as a result of developments with respect to the property, its financing and market conditions.

(1) The Company has reduced the fair value of the multi-family loan to zero as a result of developments with respect to the property, its financing and market conditions.

The geographic concentrations of credit risk exceeding 5% of the total multi-family loan investment amounts as of December 31, 2025 and 2024, respectively, are as follows:

1 unchanged sentence

Texas 57.8 % 36.1 %

Tennessee 14.4 % 15.2 %

Florida 18.6 % 11.6 %

Arkansas 9.3 % 10.3 %

Louisiana 8.8 % 7.5 %

North Carolina 6.2 % 5.8 %

Indiana 8.5 % 5.6 %

Pennsylvania 5.7 % 3.7 %

Equity Investments, at Fair Value

The Company's equity investments consist of, or have consisted of, preferred equity ownership interests in entities that invest in multi-family properties where the risks and payment characteristics are equivalent to an equity investment (or multi-family preferred equity ownership interests), equity ownership interests in entities that invest in single-family properties or originate residential loans (or single-family equity ownership interests) and joint venture equity investments in multi-family properties.

The Company's equity investments consist of, or have consisted of, preferred equity ownership interests in entities that invest in multi-family properties where the risks and payment characteristics are equivalent to an equity investment (or multi-family preferred equity ownership interests), an equity ownership interest in an entity that originates residential loans (or single-family equity ownership interest) and joint venture equity investments in multi-family properties.

The Company's equity investments are accounted for under the equity method and are presented at fair value on its consolidated balance sheets as a result of a fair value election.

3 unchanged sentences

Multi-Family Preferred Equity Ownership Interests

EHOF-NYMT Sunset Apartments Preferred, LLC 57 % $ 21,411 57 % $ 19,703

Lucie at Tradition Holdings, LLC 70 % 21,821 70 % 19,442

Hudson Bridge Apartments, LLC - Series A, Briar Hill Apartments, LLC, Kings Glen Apartments, LLC, Flagstone Apartments, LLC, Brookfield Apartments II, LLC - Series B, and Silber JBSM Properties, LLC (collectively) 58 % $ 10,125 58 % $ 9,322

2 unchanged sentences

50 % 11,494 50 % 10,637

Syracuse Apartments and Townhomes, LLC — — 58 % 21,642

Palms at Cape Coral, LLC — — 34 % 5,832

Lucie at Tradition Holdings, LLC — — 70 % 21,821

EHOF-NYMT Sunset Apartments Preferred, LLC — — 57 % 21,411

Total - Multi-Family Preferred Equity Ownership Interests 24,711 73,436

1 unchanged sentence

GWR Cedars Partners, LLC (1)

70 % 141 70 % 1,897

GWR Gateway Partners, LLC (1)

1 unchanged sentence

Total - Joint Venture Equity Investments in Multi-Family Properties — 1,338

Single-Family Equity Ownership Interests

Single-Family Equity Ownership Interest

Constructive Loans, LLC (2)

— — 50 % 38,718

Total - Single-Family Equity Ownership Interests 38,718 37,154

Total - Single-Family Equity Ownership Interest

Total $ 24,711 $ 113,492

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

The following table presents income from multi-family preferred equity ownership interests for the years ended December 31, 2024, 2023, and 2022, respectively (dollar amounts in thousands).

Income (loss) from these investments is presented in income from equity investments in the Company's accompanying consolidated statements of operations.

Income (loss) from these investments during the years ended December 31, 2024, 2023 and 2022 includes $ 4.9 million of net unrealized losses, $ 1.2 million of net unrealized gains and $ 3.6 million of net unrealized losses, respectively.

(1) The Company's joint venture equity investments in multi-family properties were transferred to assets of disposal group held for sale and subsequently sold during the year ended December 31, 2025 ( see Note 9 ).

(2) 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 this entity during the year ended December 31, 2025, and $ 307.8 million and $ 80.8 million of residential loans from this entity during the years ended December 31, 2024 and 2023, respectively.

During the year ended December 31, 2025, the Company sold approximately $ 18.7 million of residential loans to this entity prior to July 15, 2025, recognizing a realized gain of approximately $ 0.2 million.

Prior to July 15, 2025, the Company also received distributions of MSRs from Constructive ( see Note 11 ).

The following table presents (loss) income from multi-family preferred equity ownership interests for the years ended December 31, 2025, 2024, and 2023, respectively (dollar amounts in thousands).

(Loss) income from these investments is presented in (loss) income from equity investments in the Company's accompanying consolidated statements of operations.

(Loss) income from these investments during the years ended December 31, 2025, 2024 and 2023 includes $ 6.5 million of net unrealized losses, $ 4.9 million of net unrealized losses and $ 1.2 million of net unrealized gains, respectively.

For the Years Ended December 31,

Investment Name 2025 2024 2023

EHOF-NYMT Sunset Apartments Preferred, LLC $ 2,722 $ 2,579 $ 1,939

Lucie at Tradition Holdings, LLC 3,355 2,841 2,008

1 unchanged sentence

Rapid City RMI JV LLC

1,649 1,594 541

Lucie at Tradition Holdings, LLC 2,176 3,355 2,841

EHOF-NYMT Sunset Apartments Preferred, LLC 950 2,722 2,579

Syracuse Apartments and Townhomes, LLC — 2,422 2,691

5 unchanged sentences

Bighaus, LLC — — 701

Somerset Deerfield Investor, LLC — — 1,944

RS SWD Owner, LLC, RS SWD Mitchell Owner, LLC, RS SWD IF Owner, LLC, RS SWD Mullis Owner, LLC, RS SWD JH Mullis Owner, LLC and RS SWD Saltzman Owner, LLC (collectively)

Walnut Creek Properties Holdings, L.L.C.

DCP Gold Creek, LLC — — 254

Rigsbee Ave Holdings, LLC — — ( 174 )

Lurin-RMI, LLC — — 558

Total Income - Multi-Family Preferred Equity Ownership Interests $ 7,912 $ 20,462 $ 18,670

For the years ended December 31, 2024, 2023 and 2022, the Company recognized $ 0.2 million, $ 0.2 million and $ 2.9 million in premiums resulting from early redemption of multi-family preferred equity ownership interests included in equity investments, respectively, which are included in other income on the accompanying consolidated statements of operations.

Income (loss) from single-family equity ownership interests and joint venture equity investments in multi-family properties that are accounted for under the equity method using the fair value option is presented in income from equity investments in the Company's accompanying consolidated statements of operations.

The following table presents income (loss) from these investments for the years ended December 31, 2024, 2023 and 2022, respectively (dollar amounts in thousands):

Total (Loss) Income - Multi-Family Preferred Equity Ownership Interests

$ ( 776 ) $ 7,912 $ 20,462

(Loss) income from single-family equity ownership interest and joint venture equity investments in multi-family properties that are accounted for under the equity method using the fair value option is presented in (loss) income from equity investments in the Company's accompanying consolidated statements of operations.

The following table presents (loss) income from these investments for the years ended December 31, 2025, 2024 and 2023, respectively (dollar amounts in thousands):

For the Years Ended December 31,

Investment Name 2025 2024 2023

Single-Family Equity Ownership Interests

Single-Family Equity Ownership Interest

Constructive Loans, LLC (1)

$ ( 1,554 ) $ 12,481 $ 614

Morrocroft Neighborhood Stabilization Fund II, LP (2)

Total Income (Loss) - Single Family Equity Ownership Interests

Total (Loss) Income - Single Family Equity Ownership Interest

$ ( 1,554 ) $ 12,481 $ 614

4 unchanged sentences

$ ( 838 ) $ ( 4,382 ) $ ( 3,291 )

(1) Includes net unrealized gains of $ 3.1 million and net unrealized losses of $ 5.2 million and $ 1.8 million for the years ended December 31, 2024, 2023 and 2022, respectively.

(2) The Company's equity investment was redeemed during the year ended December 31, 2022.

(3) The Company's joint venture equity investments in multi-family properties were transferred to assets of disposal group held for sale during the year ended December 31, 2022.

During the year ended December 31, 2023, the Company determined that these joint venture equity investments no longer met the criteria to be classified as held for sale and returned its equity investments in the joint venture entities to equity investments, at fair value ( see Note 9 ).

Includes net unrealized losses of $ 4.4 million, $ 3.3 million and $ 1.4 million for the years ended December 31, 2024, 2023 and 2022, respectively.

Summary combined financial information for the Company’s equity investments as of December 31, 2024 and 2023, respectively, and for the years ended December 31, 2024, 2023, and 2022, respectively, is shown below and includes summary financial information for the Company's joint venture equity investments in multi-family properties that are included in assets of disposal group held for sale as of December 31, 2024, 2023 and 2022, respectively (dollar amounts in thousands):

(1) Includes net unrealized losses of $ 4.4 million recognized prior to the Company's acquisition of the outstanding membership interests in Constructive on July 15, 2025 ( see Note 24 ) and included in the accompanying consolidated statements of operations for the year ended December 31, 2025.

Includes net unrealized gains of $ 3.1 million and net unrealized losses of $ 5.2 million for the years ended December 31, 2024 and 2023, respectively.

(2) Includes net realized losses of $ 0.8 million for the year ended December 31, 2025, and includes net unrealized losses of $ 4.4 million and $ 3.3 million for the years ended December 31, 2024 and 2023, respectively.

Summary combined financial information for the Company’s equity investments as of December 31, 2025 and 2024, respectively, and for the years ended December 31, 2025, 2024 and 2023, respectively, is shown below and includes summary financial information for the Company's joint venture equity investments in multi-family properties that were sold during the year ended December 31, 2025 (dollar amounts in thousands):

December 31, 2025 December 31, 2024

34 unchanged sentences

The Company has entered into financing transactions, including residential loan securitizations and re-securitizations, which required the Company to analyze and determine whether the SPEs that were created to facilitate the transactions are VIEs in accordance with ASC 810 and if so, whether the Company is the primary beneficiary requiring consolidation.

During the year ended December 31, 2024, the Company completed a re-securitization of its investment in certain subordinated securities issued by Consolidated SLST (see below) for which the Company received net proceeds of approximately $ 73.0 million after deducting expenses associated with the securitization transaction.

The Company refers to this securitization as a 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.

During the year ended December 31, 2024, the Company completed five securitizations of certain residential loans for which the Company received net proceeds of approximately $ 1.3 billion after deducting expenses associated with the securitization transactions.

During the years ended December 31, 2025 and 2024, the Company completed four and five securitizations of certain residential loans for which the Company received aggregate net proceeds of approximately $ 945.5 million and $ 1.3 billion, respectively, after deducting expenses associated with the securitization transactions.

The Company engaged in these transactions for the purpose of obtaining non-recourse, longer-term financing on a portion of its residential loan portfolio.

The residential loans serving as collateral for the financings are comprised of performing, re-performing and non-performing and business purpose loans which are included in residential loans, at fair value on the accompanying consolidated balance sheets.

During the year ended December 31, 2024, the Company exercised its right to an optional redemption of two of its residential loan securitizations with an outstanding principal balance of $ 193.3 million at the time of redemption, returned the assets held by the trust to the Company and recognized $ 0.7 million of loss on the extinguishment of collateralized debt obligations, which is included in other income (loss) in the accompany consolidated statements of operations.

As of December 31, 2024, the Company evaluated its residential loan securitizations and its non-Agency RMBS re-securitization and concluded that the entities created to facilitate each of the financing transactions are VIEs and that the Company is the primary beneficiary of these VIEs (each a “Financing VIE” and collectively, the “Financing VIEs”).

As of December 31, 2023, the Company evaluated its residential loan securitizations and concluded that the entities created to facilitate each of the financing transactions are VIEs and that the Company is the primary beneficiary of these VIEs.

During the year ended December 31, 2025, the Company exercised its right to optional redemptions of three of its residential loan securitizations with aggregate outstanding principal balances of $ 424.6 million at the time of redemption and returned the assets held by the trust to the Company, recognizing no gain or loss on the extinguishment of the collateralized debt obligations.

During the year ended December 31, 2024, the Company exercised its right to optional redemptions of two of its residential loan securitizations with aggregate outstanding principal balances of $ 193.3 million at the time of redemption, returned the assets held by the trust to the Company and recognized $ 0.7 million of loss on the extinguishment of collateralized debt obligations, which is included in other income (loss) in the accompanying consolidated statements of operations.

During the year ended December 31, 2024, the Company completed a re-securitization of its investment in certain subordinated securities issued by Consolidated SLST (see below), which the Company refers to as a 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.

As of December 31, 2025 and 2024, the Company evaluated its residential loan securitizations and its non-Agency RMBS re-securitization and concluded that the entities created to facilitate each of the financing transactions are VIEs and that the Company is the primary beneficiary of these VIEs (each a “Financing VIE” and collectively, the “Financing VIEs”).

Accordingly, the Company consolidated the then-outstanding Financing VIEs as of December 31, 2025 and 2024, respectively.

5 unchanged sentences

The Company has elected the fair value option on the assets and liabilities held within Consolidated SLST, which requires that changes in valuations in the assets and liabilities of Consolidated SLST be reflected in the Company’s consolidated statements of operations.

Consolidated SLST is comprised of two securitization trusts and one securitization trust as of December 31, 2024 and 2023, respectively.

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 the VIE as shown below (dollar amounts in thousands):

Consolidated SLST is comprised of three and two securitization trusts as of December 31, 2025 and 2024, respectively.

During the years ended December 31, 2025 and 2024, the Company invested in subordinated securities issued by Freddie Mac-sponsored residential loan securitizations, resulting in the initial consolidation of the VIEs as shown below, respectively (dollar amounts in thousands):

For the Years Ended December 31,

Residential loans, at fair value

$ 247,405 $ 285,057

Collateralized debt obligations, at fair value

( 235,226 ) ( 275,200 )

Net investment

$ 12,179 $ 9,857

As of December 31, 2025 and 2024, the Consolidated SLST securities owned by the Company had a fair value of $ 151.5 million and $ 148.5 million, respectively ( see Note 17 ).

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

The Company’s investments in Consolidated SLST were not included as collateral to any Financing VIE as of December 31, 2023.

The Company remains economically exposed to the subordinated positions in the portion of Consolidated SLST transferred to the non-Agency RMBS re-securitization and continues to consolidate Consolidated SLST.

Consolidated Real Estate VIEs

The Company owns joint venture equity investments in entities that own multi-family apartment communities, which the Company determined to be VIEs and for which the Company is the primary beneficiary.

The Company owns, or owned, joint venture equity investments in entities 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 consolidates the assets, liabilities, income and expenses of these VIEs in the accompanying consolidated financial statements with non-controlling interests or redeemable non-controlling interests for the third-party ownership of the joint ventures' membership interests.

During the year ended December 31, 2024, the Company sold its joint venture equity investments in nine multi-family properties, which resulted in the de-consolidation of the respective joint venture entities' assets and liabilities ( see Note 9) .

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 held 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 this 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.

The Company accounted for the initial consolidation of the Consolidated Real Estate VIEs in accordance with asset acquisition provisions of ASC 805, 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 following table summarizes the aggregate estimated fair value of the assets, liabilities and non-controlling interests associated with the initial consolidation of Consolidated Real Estate VIEs and real estate acquisitions by a Consolidated Real Estate VIE during the years ended December 31, 2023 and 2022, respectively.

There were no initial consolidation of Consolidated Real Estate VIEs or real estate acquisitions by a Consolidated VIE during the year ended December 31, 2024 (dollar amounts in thousands):

Years Ended December 31,

$ 102 $ 8,576

Operating real estate (1) (2)

54,439 730,988

Lease intangibles (1) (3)

Other assets (1)

Total assets 61,641 789,714

Mortgages payable on real estate, net (1)

45,142 570,682

Other liabilities (1)

Total liabilities 47,545 575,344

Non-controlling interests (4)

Net assets consolidated $ 10,306 $ 198,077

(1) 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 is 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 Note 9 for additional information.

(2) For joint venture equity investments that are not held for sale, operating real estate is included in real estate, net in the accompanying consolidated balance sheets.

(3) For joint venture equity investments that are not held for sale, lease intangibles are included in other assets in the accompanying consolidated balance sheets.

(4) Represents third-party ownership of membership interests in Consolidated Real Estate VIEs.

In analyzing whether the Company is the primary beneficiary of the Financing VIEs, Consolidated SLST and Consolidated Real Estate VIEs, the Company considered its involvement in each of the VIEs, including the design and purpose of each VIE, and whether its involvement reflected a controlling financial interest that resulted in the Company being deemed the primary beneficiary of the VIEs.

18 unchanged sentences

Liabilities of disposal group held for sale (2)

— — 97,065 97,065

Other liabilities 17,317 10,368 9,533 37,218

47 unchanged sentences

The following tables include net (loss) income from assets and liabilities of disposal group held for sale and intercompany balances have been eliminated for purposes of this presentation.

Year Ended December 31,

For the Year Ended December 31,

Consolidated SLST Consolidated Real Estate Total

8 unchanged sentences

Gains on derivative instruments, net

— 2,788 2,788

Impairment of real estate

— ( 7,180 ) ( 7,180 )

Loss on reclassification of disposal group

— 8,652 8,652

— 26,031 26,031

Total other income (loss)

Total other income

8,460 1,529 9,989

2 unchanged sentences

Net loss attributable to non-controlling interest in Consolidated VIEs — 11,391 11,391

Net income (loss) attributable to Company

Net income attributable to Company

$ 21,883 $ 4,245 $ 26,128

Year Ended December 31,

For the Year Ended December 31,

Consolidated SLST Consolidated Real Estate Total

5 unchanged sentences

Total net loss from real estate — ( 42,299 ) ( 42,299 )

Unrealized losses, net

Unrealized gains, net

2,902 — 2,902

5 unchanged sentences

— 26,031 26,031

Total other loss

Total other income (loss)

2,902 ( 29,776 ) ( 26,874 )

Net income (loss)

15,605 ( 72,075 ) ( 56,470 )

Net loss attributable to non-controlling interest in Consolidated VIEs — 31,924 31,924

Net loss attributable to Company

Net income (loss) attributable to Company

$ 15,605 $ ( 40,151 ) $ ( 24,546 )

Year Ended December 31,

For the Year Ended December 31,

Consolidated SLST Consolidated Real Estate Total

11 unchanged sentences

— ( 89,548 ) ( 89,548 )

Loss on reclassification of disposal group

— ( 16,163 ) ( 16,163 )

Total other (loss) income

— 2,728 2,728

Total other loss

( 10,016 ) ( 98,146 ) ( 108,162 )

( 461 ) ( 129,757 ) ( 130,218 )

Net loss attributable to non-controlling interest in Consolidated VIEs

8 unchanged sentences

The following table presents activity in redeemable non-controlling interest in Consolidated VIEs for the years ended December 31, 2025, 2024 and 2023, respectively (dollar amounts in thousands):

Years Ended December 31,

For the Years Ended December 31,

2025 2024 2023

16 unchanged sentences

December 31, 2025

Multi-family loans Investment securities available for sale, at fair value Equity investments Other assets

Multi-family loans, at fair value

Investment securities available for sale, at fair value Equity investments, at fair value

Non-Agency RMBS $ — $ 21,476 $ — $ — $ 21,476

Preferred equity investments in multi-family properties 55,476 — 24,711 — 80,187

Joint venture equity investments in multi-family properties

— — 1,338 — 1,338

Other investments

2 unchanged sentences

December 31, 2024

Multi-family loans Investment securities available for sale, at fair value Equity investments Total

Multi-family loans, at fair value

Investment securities available for sale, at fair value Equity investments, at fair value

Non-Agency RMBS $ — $ 22,892 $ — $ — $ 22,892

3 unchanged sentences

— — 1,338 — 1,338

Other investments

— — — 2,000 2,000

Maximum exposure $ 86,192 $ 22,892 $ 74,774 $ 2,000 $ 185,858

13 unchanged sentences

(1) Real estate held for sale, net is recorded at the lower of the net carrying amount of the assets or the estimated fair value, net of selling costs.

Includes certain single-family rental properties as of December 31, 2024.

(2) 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 real estate, net related to certain joint venture equity investments in multi-family properties is included in assets of disposal group held for sale on the accompanying consolidated balance sheets as of December 31, 2024 and 2023.

(2) 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 real estate, net related to certain joint venture equity investments in multi-family properties was included in assets of disposal group held for sale on the accompanying consolidated balance sheets as of December 31, 2024.

See Note 9 for additional information.

1 unchanged sentence

As of December 31, 2025 and 2024, the Company owned joint venture equity investments in entities 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 joint venture entities into its consolidated financial statements ( see Note 7 ).

Also as of December 31, 2025 and 2024, the Company owned a preferred equity investment in an entity that owns a multi-family apartment community, which the Company determined to be a VIE and for which the Company is the primary beneficiary.

Accordingly, the Company consolidated the joint venture entities and the entity in which it holds a preferred equity investment into its consolidated financial statements ( see Note 7 ).

During the year ended December 31, 2025, the Company determined that two of the multi-family apartment communities owned by an entity in which the Company holds a joint venture equity investment that is not in disposal group held for sale met the criteria to be classified as held for sale, transferred the properties held by the joint venture entity from operating real estate to real estate held for sale and recognized no loss.

The entity subsequently sold one of these multi-family apartment communities for approximately $ 51.0 million, subject to certain prorations and adjustments typical in such real estate transactions, including the repayment of the related mortgage payable in the amount of approximately $ 29.5 million.

The sale generated a net gain of approximately $ 9.1 million and recognition of loan costs of approximately $ 0.4 million, both of which are included in other income on the accompanying consolidated statements of operations.

The sale also generated net income attributable to non-controlling interest of approximately $ 6.3 million, resulting in a net gain attributable to the Company's common stockholders of approximately $ 2.4 million.

As of December 31, 2025, one multi-family apartment community owned by this entity remained classified as held for sale.

During the year ended December 31, 2024, the Company determined that two of the multi-family apartment communities owned by an entity in which the Company holds a joint venture equity investment that is not in disposal group held for sale met the criteria to be classified as held for sale, transferred the properties held by the joint venture entity from operating real estate to real estate held for sale and recognized no loss.

The entity subsequently sold these multi-family apartment communities for approximately $ 77.3 million, subject to certain prorations and adjustments typical in such real estate transactions, including the repayment or assumption of the related mortgages payable in the amount of approximately $ 44.2 million.

3 unchanged sentences

The distribution resulted in a net gain of approximately $ 0.5 million, which is included in other income in the accompanying consolidated statements of operations, resulting in a net gain attributable to the Company's common stockholders of approximately $ 0.1 million.

As of December 31, 2024, no multi-family apartment communities owned by this entity remain classified as held for sale.

As of December 31, 2024, no multi-family apartment communities owned by this entity remained classified as held for sale.

During the year ended December 31, 2023, the Company became the primary beneficiary of a VIE that owns a multi-family apartment community and in which the Company holds a preferred equity investment.

Accordingly, the Company consolidated the VIE into its consolidated financial statements ( see Note 7 ).

During the year ended December 31, 2022, one of the entities in which the Company held a joint venture equity investment sold its multi-family apartment community for approximately $ 48.0 million, subject to certain prorations and adjustments typical in such real estate transactions, and repaid the related mortgage payable in the amount of approximately $ 26.0 million.

The sale generated a net gain of approximately $ 16.8 million and a loss on extinguishment of debt of approximately $ 0.5 million, both of which are included in other income on the accompanying consolidated statements of operations, resulting in a net gain attributable to the Company's common stockholders of approximately $ 14.4 million.

The multi-family apartment communities generally lease their apartment units to individual tenants at market rates for the production of rental income.

These apartment units are generally leased at a fixed monthly rate with no option for the lessee to purchase the leased unit at any point.

Operating real estate, net is periodically evaluated for impairment.

The calculation of impairment amounts for multi-family apartment properties utilized fair values that were estimated based upon discounted cash flow analyses using property financial information and assumptions regarding market rent, revenue and expense growth, capitalization rates and equity return rates.

Operating real estate, net that is not in disposal group held for sale is periodically evaluated for impairment.

During the year ended December 31, 2025, the Company determined that no multi-family apartment communities in operating real estate, net were impaired.

The Company determined that one multi-family apartment community in operating real estate, net as of December 31, 2024 was impaired.

The calculation of impairment amounts for multi-family apartment communities utilized fair values that were estimated based upon discounted cash flow analyses using property financial information and assumptions regarding market rent, revenue and expense growth, capitalization rates and equity return rates.

Accordingly, the Company recognized a $ 15.8 million impairment of real estate during the year ended December 31, 2024.

2 unchanged sentences

These units are leased to individual tenants for the production of rental income and are generally leased at a fixed monthly rate with no option for the lessee to purchase the leased unit at any point.

During the year ended December 31, 2024, the Company determined that certain single-family rental properties met the criteria to be classified as held for sale, transferred the properties from operating real estate to real estate held for sale and recognized a $ 4.8 million loss upon transfer, which is included in impairment of real estate on the accompanying consolidated statements of operations.

During the years ended December 31, 2025 and 2024, the Company determined that certain single-family rental properties met the criteria to be classified as held for sale, transferred the properties from operating real estate to real estate held for sale and recognized losses upon transfer of $ 1.6 million and $ 4.8 million, respectively, which are included in impairment of real estate on the accompanying consolidated statements of operations.

Real estate held for sale, net is recorded at the lower of the net carrying amount of the assets or the estimated fair value, net of selling costs.

Fair value for single-family rental properties held for sale was based upon local broker price opinions and automated valuation model data.

During the year ended December 31, 2024, the Company recognized a $ 4.9 million net impairment loss on single-family rental properties, inclusive of losses recognized upon transfer to real estate held for sale.

During the year ended December 31, 2024, the Company sold single-family rental properties for proceeds of approximately $ 5.4 million and recognized a net gain on sale of approximately $ 0.1 million, which is included in other income on the accompanying consolidated statements of operations.

During the years ended December 31, 2025 and 2024, the Company recognized $ 2.6 million and $ 4.9 million of net impairment losses on single-family rental properties, inclusive of losses recognized upon transfer to real estate held for sale, respectively.

During the year ended December 31, 2025, the Company sold single-family rental properties for proceeds of approximately $ 7.4 million and recognized a net loss on sale of approximately $ 0.6 million, which is included in other income on the accompanying consolidated statements of operations.

During the year ended December 31, 2024, the Company sold single-family rental properties for proceeds of approximately $ 5.4 million and recognized a net gain on sale of approximately $ 0.1 million.

Lease Intangibles

Intangibles related to multi-family properties consist of the value of in-place leases and are included in other assets on the accompanying consolidated balance sheets.

The following table presents the components of lease intangibles, net as of December 31, 2024 and 2023, respectively (dollar amounts in thousands):

December 31, 2024 December 31, 2023

Lease intangibles $ 26,738 $ 54,581

Accumulated amortization ( 26,738 ) ( 52,203 )

Lease intangibles, net

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 lease intangibles, net related to certain joint venture equity investments in multi-family properties are included in assets of disposal group held for sale on the accompanying consolidated balance sheets as of December 31, 2024 and 2023.

Lease intangibles were fully amortized as of December 31, 2025 and 2024.

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 lease intangibles, net related to certain joint venture equity investments in multi-family properties were included in assets of disposal group held for sale on the accompanying consolidated balance sheets as of December 31, 2024.

See Note 9 for additional information.

7 unchanged sentences

$ 23,125 $ 39,822 $ 24,620

(1) Amounts for the year ended December 31, 2022 include depreciation and amortization of multi-family properties that have been reclassified to assets held in disposal group held for sale.

The estimated depreciation expense related to operating real estate is as follows (dollar amounts in thousands):

Year Ending December 31, Depreciation Expense

Year Ending December 31,

Depreciation Expense

2026 $ 18,590

4 unchanged sentences

Assets and Liabilities of Disposal Group Held for Sale

Accordingly, the Company determined that certain joint venture equity investments met the criteria to be classified as held for sale and transferred either the assets and liabilities of the respective Consolidated VIEs or its equity investment in the joint venture entity to assets and liabilities of disposal group held for sale.

During the year ended December 31, 2023, five of the entities in which the Company held a joint venture equity investment sold their multi-family apartment communities for approximately $ 219.2 million, subject to certain prorations and adjustments typical in such real estate transactions, and repaid the related mortgages payable in the amount of approximately $ 173.6 million.

The sales generated net gains of approximately $ 6.0 million and losses on extinguishment of debt of approximately $ 2.0 million, both of which are included in other income on the accompanying consolidated statements of operations.

The sales also generated net income attributable to non-controlling interest of approximately $ 2.2 million, resulting in net gains attributable to the Company's common shareholders of approximately $ 1.7 million.

In December 2023, the Company suspended the marketing of nine joint venture equity investments that were reported in assets and liabilities of disposal group held for sale primarily due to unfavorable market conditions and a lack of transactional activity in the multi-family market.

As such, the Company determined that these joint venture equity investments no longer met the criteria to be classified as held for sale and transferred either the assets and liabilities of the respective Consolidated VIEs or its equity investment in the joint venture entity to their respective categories or equity investments, at fair value, respectively, on the accompanying consolidated balance sheets as of December 31, 2023.

As a result of this transfer, the Company adjusted the carrying value of the long-lived assets in these Consolidated VIEs and recognized an approximately $ 16.2 million loss on reclassification of disposal group in the year ended December 31, 2023.

As of December 31, 2023, five joint venture equity investments were classified as disposal group held for sale on the accompanying consolidated balance sheets.

In March 2024, the Company suspended the marketing of one additional joint venture equity investment, determined that it no longer met the criteria to be classified as held for sale and transferred the assets and liabilities of the Consolidated VIE to their respective categories on the accompanying consolidated balance sheets as of March 31, 2024.

As a result of this transfer, the Company adjusted the carrying value of the long-lived assets in the Consolidated VIE and recognized an approximately $ 14.6 million loss on reclassification of disposal group during the three months ended March 31, 2024.

During the year ended December 31, 2024, in response to productive negotiations with operating partners and increased transactional activity, the Company determined that eight joint venture equity investments met the criteria to be classified as held for sale and transferred the assets and liabilities of the respective Consolidated VIEs to assets and liabilities of disposal group held for sale on the accompanying consolidated balance sheets.

As a result, the Company recognized a loss of approximately $ 3.7 million, which is included in impairment of real estate in the accompanying consolidated statements of operations.

The Company sold its ownership interests in nine joint venture equity investments in multi-family properties which resulted in the de-consolidation of the joint venture entities' assets and liabilities and a gain on de-consolidation of approximately $ 5.6 million, which is included in other income in the accompanying consolidated statements of operations, for the year ended December 31, 2024.

During the year ended December 31, 2024, one of the entities in which the Company held a joint venture equity investment that is in disposal group held for sale sold its multi-family apartment community for approximately $ 56.4 million, subject to certain prorations and adjustments typical in such real estate transactions, and repaid the related mortgage payable in the amount of approximately $ 31.8 million.

The sale generated a net gain of approximately $ 11.4 million and a loss on extinguishment of debt of approximately $ 1.6 million, both of which are included in other income on the accompanying consolidated statements of operations.

The sale also generated net income attributable to non-controlling interest of approximately $ 1.1 million, resulting in net gain attributable to the Company's common stockholders of approximately $ 8.7 million.

As of December 31, 2024, two joint venture equity investments are classified as disposal group held for sale.

During the years ended December 31, 2025, 2024, and 2023 the Company repositioned its business through the opportunistic disposition over time of its joint venture equity investments in multi-family properties and reallocation of its capital away from such assets to its targeted assets.

As part of this process, 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 were included in assets and liabilities of disposal group held for sale on the accompanying consolidated balance sheets.

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, assets and liabilities of 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.

The following table presents the carrying values of the major classes of assets and liabilities of disposal group held for sale as of December 31, 2025 and 2024, respectively (dollar amounts in thousands):

3 unchanged sentences

Real estate, net — 111,032

111,032 407,834

Other assets 746 5,120

Total assets of disposal group held for sale (1)

1 unchanged sentence

Mortgages payable on real estate, net (2)

$ 93,370 $ 378,386

Other liabilities 122 3,695

2 unchanged sentences

(1) Assets and liabilities of the disposal group held for sale are in Consolidated VIEs because the Company is the primary beneficiary.

(2) In March 2024, two entities in which the Company held joint venture equity investments entered into debt restructuring agreements with the respective senior lender for their mortgages payable.

(2) During the year ended December 31, 2024, two entities in which the Company held joint venture equity investments entered into debt restructuring agreements with the respective senior lender for their mortgages payable.

As part of the agreements, a portion of interest payments were deferred until the maturity date.

The restructurings did not result in a change in the carrying amount of the mortgages payable and no gains were recorded.

During the year ended December 31, 2024, the Company sold its ownership interests in these entities, which resulted in the de-consolidation of the mortgages payable subject to the debt restructuring agreements as of December 31, 2024.

The Company subsequently sold its ownership interests in these entities, which resulted in the de-consolidation of the mortgages payable subject to the debt restructuring agreements as of December 31, 2024.

Also included in the disposal group held for sale are non-controlling interests in Consolidated VIEs in the amount of $ 0.6 million and $ 2.0 million as of December 31, 2025 and 2024, respectively.

Real estate, net included in assets of disposal group held for sale is recorded at the lower of the net carrying amount of the assets or the estimated fair value, net of selling costs.

Fair value for real estate was based upon a discounted cash flow analysis using property financial information and assumptions regarding market rent, revenue and expense growth, capitalization rates and return rates.

During the year ended December 31, 2024, the Company recognized net impairment losses of $ 28.2 million for real estate, net in the disposal group held for sale, inclusive of losses recognized upon transfer into disposal group held for sale.

During the years ended December 31, 2023 and 2022, the Company recognized net impairment losses of $ 89.5 million and $ 2.4 million, respectively.

The following table presents a summary of activity in disposal group held for sale for the years ended December 31, 2025, 2024 and 2023, respectively (dollar amounts in thousands):

For the Years Ended December 31,

2025 2024 2023

Multi-family apartment community sales by Consolidated VIEs

Total gross proceeds

$ 108,550 $ 56,350 $ 219,170

Total repayment of related mortgages payable

$ 89,570 $ 31,809 $ 173,605

Total net gains on sale (1)

$ 461 $ 11,373 $ 5,997

Total losses on extinguishment of debt (1)

$ 448 $ 1,602 $ 1,965

Total net gains attributable to non-controlling interests

$ 1 $ 1,060 $ 2,234

Total net gains attributable to Company's common shareholders

$ 11 $ 8,711 $ 1,700

Sales of the Company's ownership interests in joint venture equity investments

Total gain on de-consolidation of Consolidated VIEs (1)

$ — $ 5,615 $ —

Reclassification to disposal group held for sale

Total impairment loss on reclassification to disposal group held for sale (2)

$ — $ 3,726 $ —

Reclassification from disposal group held for sale

Total loss on reclassification from disposal group held for sale

$ — $ 14,636 $ 16,163

(1) Included in other income in the accompanying consolidated statements of operations.

(2) Included in impairment of real estate in the accompanying consolidated statements of operations.

Real estate, net included in assets of disposal group held for sale was recorded at the lower of the net carrying amount of the assets or the estimated fair value, net of selling costs.

Fair value for real estate was based upon either negotiated sale prices less anticipated selling costs or a discounted cash flow analysis using property financial information and assumptions regarding market rent, revenue and expense growth, capitalization rates and return rates.

The following table presents net impairment losses recognized on real estate, net in the disposal group held for sale, inclusive of losses recognized upon transfer into disposal group held for sale, during the years ended December 31, 2025, 2024 and 2023, respectively (dollar amounts in thousands):

For the Years Ended December 31,

2025 2024 2023

Impairment of real estate in disposal group held for sale (1)

$ 7,180 $ 28,180 $ 89,548

(1) Included in impairment of real estate in the accompanying consolidated statements of operations.

See Note 17 for descriptions of valuation methodologies utilized for other classes of assets and liabilities of disposal group held for sale.

The following table presents the pretax losses of the disposal group held for sale as of December 31, 2024 for the years ended December 31, 2024, 2023 and 2022, respectively (dollar amounts in thousands):

The following table presents the pretax losses of the disposal group held for sale for the years ended December 31, 2025, 2024 and 2023, respectively (dollar amounts in thousands):

For the Years Ended December 31,

5 unchanged sentences

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.

The Company enters into derivative instruments in connection with its risk management activities.

These derivative instruments 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 purchase options on U.S.

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

Additionally, Constructive may enter into IRLCs related to the origination of business purpose loans.

The Company elected not to apply hedge accounting for its derivative instruments.

3 unchanged sentences

Other assets $ 31 $ 56

IRLCs Other assets 691 —

Interest rate swaps Other assets — —

1 unchanged sentence

Other assets — —

Commodity futures

Other assets — —

Total derivative assets (1)

3 unchanged sentences

Total derivative liabilities

(1) Excludes interest rate cap contracts held by certain Consolidated VIEs included in other assets in disposal group held for sale.

(1) Excludes interest rate cap contracts held by certain Consolidated Real Estate VIEs included in other assets in disposal group held for sale as of December 31, 2024 (see Note 9) .

The Company elects to net the fair value of its derivative contracts by counterparty when appropriate and accounts for the receipt or payment of variation margin as a direct reduction of or increase in the carrying value of the related asset or liability.

8 unchanged sentences

4,759 ( 148 ) ( 4,611 ) —

Commodity futures

9,748 ( 1,733 ) ( 8,015 ) —

Total derivative assets $ 23,998 $ ( 10,650 ) $ ( 12,626 ) $ 722

6 unchanged sentences

( 148 ) 148 — —

Commodity futures

( 1,733 ) 1,733 — —

Total derivative liabilities $ ( 59,409 ) $ 10,650 $ 48,759 $ —

4 unchanged sentences

Interest rate swaps 63,942 ( 10,134 ) ( 53,808 ) —

Treasury futures

952 ( 658 ) ( 294 ) —

Total derivative assets $ 64,950 $ ( 10,792 ) $ ( 54,102 ) $ 56

Derivative liabilities

Credit default swaps

$ ( 9,120 ) $ — $ 9,120 $ —

Interest rate swaps ( 10,134 ) 10,134 — —

Treasury futures

( 658 ) 658 — —

Total derivative liabilities $ ( 19,912 ) $ 10,792 $ 9,120 $ —

2 unchanged sentences

The Company is required to post an initial margin amount for its interest rate swaps, credit default swaps and U.S.

Treasury futures determined by CME Clearing and ICE, which is generally intended to be set at a level sufficient to protect the exchange from the derivative financial instrument’s maximum estimated single-day price movement.

Treasury and commodity futures determined by the respective central clearing houses, which is generally intended to be set at a level sufficient to protect the exchange from the derivative instrument’s maximum estimated single-day price movement.

The following table summarizes assets pledged as initial margin as of December 31, 2025 and 2024, respectively (dollar amounts in thousands):

3 unchanged sentences

Investment securities available for sale, at fair value

$ 68,458 $ 33,399

Restricted cash

3 unchanged sentences

Margin excess related to settlement of variation margin in the amount of approximately $ 16.2 million and $ 11.1 million as of December 31, 2025 and 2024, respectively, is included in other assets on the accompanying consolidated balance sheets.

Margin deficit related to settlement of variation margin in the amount of approximately $ 8.1 million as of December 31, 2024 is included in other liabilities on the accompanying consolidated balance sheets.

The tables below summarize the activity of derivative instruments for the years ended December 31, 2024 and 2023, respectively (dollar amounts in thousands):

Margin deficit related to settlement of variation margin in the amount of approximately $ 24.3 million and $ 8.1 million as of December 31, 2025 and 2024, respectively, is included in other liabilities on the accompanying consolidated balance sheets.

The tables below summarize the notional activity of derivative instruments for the years ended December 31, 2025 and 2024, respectively (dollar amounts in thousands):

Notional Amount For the Year Ended December 31, 2025

Type of Derivative Instrument December 31, 2023 Additions/Transfers In (1)

Terminations/Transfers Out (1)

Type of Derivative Instrument December 31, 2024 Additions

Terminations/Pair-Offs

December 31, 2025

1 unchanged sentence

Options — 741 ( 741 ) —

— 170,000 ( 170,000 ) —

Interest rate swaps 4,134,267 3,584,491 ( 2,799,360 ) 4,919,398

3 unchanged sentences

406,100 2,576,800 ( 2,081,700 ) 901,200

Commodity futures

— 299,736 ( 100,060 ) 199,676

Notional Amount For the Year Ended December 31, 2024

Type of Derivative Instrument December 31, 2023 Additions/ Transfers In (1)

Terminations/Transfers Out (1)

December 31, 2024

3 unchanged sentences

Interest rate swaps 2,778,015 3,063,163 ( 1,706,911 ) 4,134,267

(1) Includes transfers from or transfers to disposal group held for sale with respect to interest rate caps held by certain Consolidated Real Estate VIEs ( see Note 9 ).

(2) Includes an interest rate cap held by a preferred equity investment in a multi-family property that was consolidated during the year ended December 31, 2023 ( see Note 7 ) and interest rate caps held by certain Consolidated VIEs that were transferred from disposal group held for sale during the year ended December 31, 2023 ( see Note 9 ).

The following tables present the components of realized gains (losses), net and unrealized gains (losses), net related to our derivative instruments, which are included in gains (losses) on derivative instruments, net in our consolidated statements of operations for the years ended December 31, 2024, 2023 and 2022, respectively (dollar amounts in thousands):

Credit default swaps

— 400,000 — 400,000

Treasury futures

— 905,050 ( 498,950 ) 406,100

(1) Includes transfers from or transfers to disposal group held for sale with respect to interest rate caps held in certain Consolidated Real Estate VIEs ( see Note 9 ).

The following table presents the components of realized gains (losses), net and unrealized gains (losses), net related to our derivative instruments, which are included in (losses) gains on derivative instruments, net and mortgage banking activities, net in the consolidated statements of operations for the years ended December 31, 2025, 2024 and 2023, respectively (dollar amounts in thousands):

For the Years Ended December 31,

4 unchanged sentences

Options 1,137 — ( 2,261 ) — ( 4,036 ) —

— ( 3,611 ) — — — —

369 — — — — —

Interest rate swaps 36,606 ( 92,677 ) 19,918 81,255 — ( 27,447 )

3 unchanged sentences

( 18,426 ) 4,317 ( 1,493 ) 294 — —

Commodity futures

9,063 8,016 — — — —

Total $ 24,094 $ ( 84,065 ) $ 12,097 $ 83,899 $ 2,995 $ ( 29,373 )

(1) Includes interest rate caps held by certain Consolidated Real Estate VIEs included in other assets in disposal group held for sale.

The following tables present information about our interest rate cap contracts related to certain repurchase agreement financing and variable-rate mortgages payable on real estate that are not included in disposal group held for sale as of December 31, 2024 and 2023, respectively (dollar amounts in thousands):

(1) Includes interest rate caps held by certain Consolidated Real Estate VIEs included in other assets in disposal group held for sale ( see Note 9 ).

The following tables present information about an interest rate cap contract related to a variable-rate mortgage payable on real estate that is not included in disposal group held for sale as of December 31, 2025 and 2024, respectively (dollar amounts in thousands):

December 31, 2025

5 unchanged sentences

45,142 January 1, 2026

(1) Replacement interest rate cap purchased in January 2025.

December 31, 2024

Financing Type

Weighted Average SOFR Strike Price

SOFR Strike Price/Range

SOFR Strike Price

Notional Amount

Expiration Date/Range

Repurchase agreement

4.10 % 4.10 % $ 111,000 November 17, 2024

Expiration Date

Mortgages payable on real estate

2.13 % 1.50 % - 3.22 %

439,025 January 9, 2024 - January 15, 2025

The following tables present information about our interest rate swaps whereby we receive floating rate payments in exchange for fixed rate payments as of December 31, 2024 and 2023, respectively (dollar amounts in thousands):

45,142 January 1, 2025

(1) Replacement interest rate cap purchased in January 2026.

The following tables present information about the Company's interest rate swaps whereby it receives floating rate payments in exchange for fixed rate payments as of December 31, 2025 and 2024, respectively (dollar amounts in thousands):

December 31, 2025

8 unchanged sentences

2035 300,878 4.00 % 4.30 %

2045 191,010 3.99 % 4.13 %

Total $ 4,866,348 3.80 % 4.16 %

5 unchanged sentences

2028 510,325 3.90 % 4.93 %

2029 614,585 3.86 % 4.71 %

2033 319,590 4.00 % 4.83 %

2034 178,224 3.86 % 4.83 %

2044 300,000 3.34 % 4.80 %

Total $ 4,081,217 4.09 % 4.82 %

The following tables present information about our interest rate swaps whereby we receive fixed rate payments in exchange for floating rate payments as of December 31, 2024 and 2023, respectively (dollar amounts in thousands):

The following tables present information about the Company's interest rate swaps whereby it receives fixed rate payments in exchange for floating rate payments as of December 31, 2025 and 2024, respectively (dollar amounts in thousands):

December 31, 2025

10 unchanged sentences

Mortgage Servicing Rights

The Company owned MSRs as of December 31, 2024 resulting from distributions of MSRs received from its equity investment in an entity that originates residential loans ( see Note 6 ) and purchases of MSRs.

The Company's MSRs are associated with business purpose loans and are reported at fair value pursuant to the fair value option election ( see Note 17 ).

The Company owned MSRs as of December 31, 2025 and 2024 resulting from the sale of loans Constructive originates with servicing retained, distributions received from Constructive prior to July 15, 2025 or purchases of MSRs.

The Company's MSRs are associated with business purpose loans, are reported at fair value pursuant to the fair value option election ( see Note 17 ) and are included in other assets in the accompanying consolidated balance sheets.

The primary risks associated with the Company's MSRs are changes in interest rates and prepayment speeds.

The following table presents activity related to MSRs for the year ended December 31, 2024 (dollar amounts in thousands).

The Company did no t have MSRs for the years ended December 31, 2023 and 2022.

Year Ended December 31, 2024

The following table presents activity related to MSRs for the years ended December 31, 2025 and 2024, respectively (dollar amounts in thousands).

The Company did not have MSRs for the year ended December 31, 2023.

For the Years Ended December 31,

Balance at beginning of period

MSRs received from equity investment

MSRs received from equity investment in Constructive 3,405 10,917

MSRs acquired through business combination 141 —

Purchases of MSRs

1 unchanged sentence

Changes in valuation inputs or assumptions used in valuation model

( 1,553 ) 912

Other changes in fair value, including runoff

( 2,103 ) ( 296 )

Balance at end of period

The following table presents the components of servicing fee income recognized during the year ended December 31, 2024 (dollar amounts in thousands).

Servicing fee income is included in other income (loss) on the accompanying consolidated statements of operations.

Year Ended December 31, 2024

$ 20,893 $ 21,003

The following table presents the components of servicing fee income recognized during the years ended December 31, 2025 and 2024, respectively (dollar amounts in thousands).

Servicing fee income is included in other income on the accompanying consolidated statements of operations.

For the Years Ended December 31,

Servicing fees

$ 5,084 $ 516

Prepayment fees

1 unchanged sentence

Servicing fee income

$ 8,036 $ 906

(1) Includes default interest and late fee collections.

The Company recognized subservicing fee expenses in the amount of $ 0.1 million related to MSRs during the year ended December 31, 2024, which is included in portfolio operating expenses on the accompanying consolidated statements of operations.

The Company recognized subservicing fee expenses in the amount of $ 0.8 million and $ 0.1 million related to MSRs during the years ended December 31, 2025 and 2024, respectively, which is included in portfolio operating expenses on the accompanying consolidated statements of operations.

Other Assets and Other Liabilities

8 unchanged sentences

Mortgage servicing rights 20,893 21,003

Intangible assets 17,318 252

Receivables from derivative counterparties 16,203 11,059

Recoverable advances on residential loans 15,404 17,391

Other assets in consolidated multi-family properties 14,521 16,640

Receivables from derivative counterparties 11,059 1,148

Deferred tax assets 14,441 10,864

1 unchanged sentence

Derivative assets (2)

Lease intangibles, net in consolidated multi-family properties — 2,378

Other 7,171 5,751

Total $ 427,516 $ 437,874

(1) Restricted cash represents cash held by third parties, initial margin for derivative contracts and cash held by the Company's securitization trusts.

(1) Restricted cash represents cash held by third parties including initial margin for derivative contracts and cash held by the Company's securitization trusts.

(2) Includes derivative assets held in Consolidated Real Estate VIEs.

4 unchanged sentences

Dividends and dividend equivalents payable 35,332 30,280

Unfunded commitments for residential and multi-family investments 14,001 6,587

Margin payable to derivative counterparties 24,271 8,137

Accrued expenses 23,554 11,141

Accrued expenses and other liabilities in consolidated multi-family properties 10,621 21,797

Deferred tax liabilities 9,282 2,012

Swap margin payable 8,137 —

Advanced remittances from residential loan servicers 13,228 7,029

Operating lease liabilities 5,935 7,102

Deferred tax liabilities 12,761 9,282

Accrued expenses and other liabilities in consolidated multi-family properties 9,533 10,621

Deferred revenue 7,316 5,817

Unfunded commitments for residential and multi-family investments 6,750 14,001

Operating lease liabilities 5,549 5,935

Holdback for representations and warranties 2,500 —

Other 5,593 4,354

Total $ 205,501 $ 147,612

Repurchase Agreements

The following table presents the carrying value of the Company's repurchase agreements as of December 31, 2024 and 2023, respectively (dollar amounts in thousands):

Repurchase Agreements Secured By:

Repurchase Agreements and Warehouse Facilities

The following table presents the carrying value of the Company's repurchase agreements and warehouse facilities as of December 31, 2025 and 2024, respectively (dollar amounts in thousands):

Repurchase Agreements and Warehouse Facilities Secured By:

December 31, 2025 December 31, 2024

3 unchanged sentences

462,127 428,399

Residential loans held for sale

Single-family rental properties

1 unchanged sentence

Total carrying value $ 6,753,417 $ 4,012,225

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

As of December 31, 2025, the Company had no repurchase agreement or warehouse facility exposure where the amount 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.

9 unchanged sentences

Consolidated SLST securities owned by the Company are eliminated in consolidation in accordance with GAAP.

(2) Includes CDOs repurchased from our residential loan securitizations with a fair value of $ 5.3 million as of December 31, 2024.

Repurchased CDOs are eliminated in consolidation in accordance with GAAP.

The Company also had unencumbered residential loans with a fair value of $ 54.4 million at December 31, 2025.

Residential Loans, Real Estate Owned and Single-family Rental Properties

The Company has repurchase agreements with six financial institutions to finance residential loans, real estate owned and single-family rental properties.

The following table presents detailed information about the Company’s financings under these repurchase agreements and associated assets pledged as collateral at December 31, 2024 and 2023, respectively (dollar amounts in thousands):

The Company has repurchase agreements or warehouse facilities with eight financial institutions to finance residential loans, real estate held for sale, real estate owned and single-family rental properties.

The following table presents detailed information about the Company’s financings under these repurchase agreements or 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.

(3) Includes residential loans and real estate owned with an aggregate carrying 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.

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 and to reduce the aggregate repurchase price of the collateral.

The outstanding financings under the repurchase agreements with five of the counterparties with an aggregate outstanding balance of $ 481.4 million as of December 31, 2024 are subject to margin calls to the extent the market value of the collateral falls below specified levels and repurchase may be accelerated upon an event of default under the repurchase agreements.

The Company’s accrued interest payable on outstanding repurchase agreements secured by residential loans, real estate owned and single-family rental properties at December 31, 2024 and 2023 amounted to $ 2.5 million and $ 3.7 million, respectively, and is included in other liabilities on the Company’s consolidated balance sheets.

The Company, as required by a repurchase agreement with one counterparty, entered into an interest rate cap contract that limited the indexed portion of the interest rate on the related repurchase agreement to a fixed rate ( see Note 10) .

The interest rate cap requirement and the related interest rate cap contract expired in November 2024.

As of December 31, 2024, the Company's repurchase agreements contain various covenants, including among other things, the maintenance of certain amounts of liquidity and total stockholders' equity as defined in the respective agreements.

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

Includes residential loans and real estate owned with an aggregate fair value of $ 524.6 million and single-family rental properties with a net carrying value of $ 134.6 million as of December 31, 2024.

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

The outstanding financing under these repurchase agreements and warehouse facilities as of December 31, 2025 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.

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 Company’s accrued interest payable on outstanding repurchase agreements and warehouse facilities secured by residential loans, real estate owned and single-family rental properties at December 31, 2025 and 2024 amounted to $ 2.6 million and $ 2.5 million, respectively, and is included in other liabilities on the Company’s consolidated balance sheets.

As of December 31, 2025, the Company's repurchase agreements and warehouse facilities contain various covenants, including among other things, the maintenance of certain amounts of liquidity and total stockholders' equity as defined in the respective agreements.

The Company is in compliance with such covenants as of December 31, 2025 and through the date of this Annual Report on Form 10-K.

Investment Securities

The Company has entered into repurchase agreements with financial institutions to finance certain investment securities available for sale, securities owned in Consolidated SLST and CDOs repurchased from our residential loan securitizations.

The Company has entered into repurchase agreements with financial institutions to finance certain investment securities available for sale and securities owned in Consolidated SLST.

These repurchase agreements provide short-term financing that bear interest rates typically based on a spread to SOFR and are secured by the investment securities which they finance and additional collateral pledged, if any.

As of December 31, 2024 and 2023, the Company had amounts outstanding under repurchase agreements with nine counterparties and seven counterparties, respectively.

As of December 31, 2025 and 2024, the Company had amounts outstanding under repurchase agreements to finance certain investment securities available for sale and securities owned in Consolidated SLST with twelve counterparties and nine counterparties, respectively.

The following table presents detailed information about the amounts outstanding under the Company’s repurchase agreements secured by investment securities and associated assets pledged as collateral at December 31, 2025 and 2024, respectively (dollar amounts in thousands):

2 unchanged sentences

Amortized Cost of Collateral Pledged

Outstanding Repurchase Agreements Fair Value of Collateral Pledged Amortized Cost of Collateral Pledged

Outstanding Repurchase Agreements Fair Value of Collateral Pledged (1)

Amortized Cost of Collateral Pledged (1)

Agency RMBS $ 5,894,367 $ 6,143,730 $ 6,033,884 $ 2,830,925 $ 2,975,400 $ 2,995,820

4 unchanged sentences

Balance at end of the period $ 6,154,086 $ 6,412,129 $ 6,302,640 $ 3,516,611 $ 3,676,585 $ 3,729,642

(1) Collateral pledged includes restricted cash posted as margin in the amount of $ 11.8 million.

(1) Collateral pledged includes restricted cash posted as margin in the amount of $ 11.8 million as of December 31, 2024.

(2) Includes first loss subordinated securities in Consolidated SLST with a fair value of $ 18.6 million and $ 20.6 million as of December 31, 2025 and 2024, respectively.

Consolidated SLST securities owned by the Company are eliminated in consolidation in accordance with GAAP.

(3) Includes CDOs repurchased from our residential loan securitizations with a fair value of $ 42.1 million as of December 31, 2023 .

Amounts included in amortized cost of collateral pledged for repurchased CDOs represent the current par value of the securities.

Repurchased CDOs are eliminated in consolidation in accordance with GAAP.

As of December 31, 2025 and 2024, the outstanding balances under our repurchase agreements secured by investment securities were funded at a weighted average advance rate of 96.5 % and 96.0 %, respectively, that implies an average "haircut" of 3.5 % and 4.0 %, respectively.

6 unchanged sentences

Within 30 days $ 2,860,770 $ 2,103,332

Over 30 day to 90 days 1,413,279 1,263,000

Over 90 days — 93,617

Over 30 days to 90 days

3,293,316 1,413,279

Total $ 6,154,086 $ 3,516,611

20 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

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

70,867 70,757 7.38 % 2064

Total collateralized debt obligations $ 3,070,314 $ 2,978,444

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 $ 1.5 million in net unrealized losses on residential loan securitizations and a non-Agency RMBS re-securitization at fair value, which is 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 $ 23.1 million and $ 1.5 million in net unrealized losses, respectively, on residential loan securitizations and a non-Agency RMBS re-securitization at fair value, which are included in unrealized gains (losses), net on the accompanying consolidated statements of operations.

The Company's CDOs as of December 31, 2025 had stated maturities as follows:

3 unchanged sentences

Senior Unsecured Notes

On July 8, 2025, the Company completed the issuance of $ 90.0 million in aggregate principal amount of its 9.875% 2030 Senior Notes in an underwritten public offering.

The total proceeds to the Company from the offering of the 9.875% 2030 Senior Notes, after deducting the underwriters' discount and commissions and offering expenses, were approximately $ 86.6 million.

On August 22, 2025, the Company issued an additional $ 25.0 million in aggregate principal amount of the 9.875% 2030 Senior Notes in a registered direct offering.

The total proceeds to the Company from the registered direct offering of the 9.875% 2030 Senior Notes, after deducting offering expenses, were approximately $ 24.8 million.

On January 14, 2025, the Company completed the issuance of $ 82.5 million in aggregate principal amount of its 9.125% 2030 Senior Notes in an underwritten public offering.

The total net proceeds to the Company from the offering of the 9.125% 2030 Senior Notes, after deducting the underwriters' discount and commissions and offering expenses, were approximately $ 79.3 million.

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

3 unchanged sentences

Subsequent to the issuance of the Unregistered Notes, the Company conducted an exchange offer wherein the Company exchanged its registered 5.75 % Senior Notes due 2026 (the "Registered Notes" and, together with the aggregate principal amount of Unregistered Notes that remain outstanding, the "2026 Senior Notes") for an equal principal amount of Unregistered Notes.

The 2029 Senior Notes and the 2026 Senior Notes (collectively, the "Senior Unsecured Notes") are senior unsecured obligations of the Company that are equal in right of payment to each other and structurally subordinated in right of payment to the Company's subordinated debentures.

The Senior Unsecured Notes are senior unsecured obligations of the Company that are equal in right of payment to each other and structurally subordinated in right of payment to the Company's subordinated debentures.

No sinking fund is provided for the Senior Unsecured Notes.

7 unchanged sentences

$ 115,000 $ 118,496 $ — $ —

9.125% 2030 Senior Notes at fair value

82,500 82,431 — —

2029 Senior Notes at fair value

60,000 59,925 60,000 60,310

2026 Senior Notes at amortized cost, net

2 unchanged sentences

$ 357,500 $ 360,437 $ 160,000 $ 159,196

2029 Senior Notes

The 2029 Senior Notes bear interest at a rate equal to 9.125 % per year, payable in cash quarterly in arrears on January 1, April 1, July 1, and October 1 of each year, beginning on October 1, 2024, and mature on July 1, 2029, unless earlier redeemed.

The Company may redeem the 2029 Senior Notes, in whole or in part, at any time at the Company’s option on or after July 1, 2026, at a redemption price equal to 100 % of the outstanding principal amount of the 2029 Senior Notes to be redeemed plus accrued and unpaid interest to, but excluding, the redemption date.

The Company has elected the fair value option with respect to the 2029 Senior Notes.

None of the change in the fair value of the 2029 Senior Notes for the year ended December 31, 2024 was due to instrument-specific credit risk.

Accordingly, the Company recognized $ 0.3 million in net unrealized losses on the 2029 Senior Notes, which are included in unrealized (losses) gains, net on the accompanying consolidated statements of operations for the year ended December 31, 2024.

The Company has elected the fair value option with respect to the 9.875% 2030 Senior Notes, 9.125% 2030 Senior Notes and 2029 Senior Notes.

The following table presents a summary of the key terms of the notes carried at fair value as of December 31, 2025:

Interest Rate

First Interest Payment Date

Maturity Date

Optional Redemption Date

9.875% 2030 Senior Notes at fair value

9.875 % October 1, 2025 October 1, 2030 October 1, 2027

9.125% 2030 Senior Notes at fair value

9.125 % April 1, 2025 April 1, 2030 April 1, 2027

2029 Senior Notes at fair value

9.125 % October 1, 2024 July 1, 2029 July 1, 2026

The interest on the notes listed above is payable in cash quarterly in arrears on January 1, April 1, July 1, and October 1 of each year, beginning on the respective first interest payment dates, and the notes mature on the respective maturity dates, unless earlier redeemed.

The Company may redeem the notes, in whole or in part, at any time at the Company's option on or after the respective optional redemption dates noted above, at a redemption price equal to 100 % of the respective outstanding principal amount to be redeemed plus accrued and unpaid interest to, but excluding, the respective redemption date.

For the years ended December 31, 2025 and 2024, none of the change in the fair value of the respective notes carried at fair value outstanding as of such dates was due to instrument-specific credit risk.

Accordingly, the Company recognized $ 3.0 million and $ 0.3 million in net unrealized losses for the years ended December 31, 2025 and 2024, respectively, on the notes carried at fair value, which are included in unrealized gains (losses), net on the accompanying consolidated statements of operations.

2026 Senior Notes

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

Costs related to the issuance of the 2026 Senior Notes which include underwriting, legal, accounting and other fees, are reflected as deferred charges.

On June 12, 2025, the Company completed a consent solicitation from holders of the 2026 Senior Notes to amend the indenture pursuant to which such notes were issued to modify a covenant related to Company leverage.

Costs related to the original issuance of the 2026 Senior Notes, which include underwriting, legal, accounting and other fees, are reflected as deferred charges.

Additionally, consent fees paid to bondholders related to the amendment of the indenture for the 2026 Senior Notes are included in deferred charges.

The deferred charges, net of amortization, are presented as a deduction from the corresponding debt liability on the Company's accompanying consolidated balance sheets in the amount of $ 0.4 million and $ 1.1 million as of December 31, 2025 and 2024, respectively.

The deferred charges are amortized as an adjustment to interest expense using the effective interest method, resulting in a total cost to the Company of approximately 6.73 %.

Third-party expenses related to the aforementioned consent solicitation in the amount of $ 0.5 million are included in financing transaction costs in the accompanying consolidated statements of operations for the year ended December 31, 2025.

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 (s ee Note 26) .

The 2026 Senior Notes bear interest at a rate of 5.75 % per year, subject to adjustment from time to time based on changes in the ratings of the 2026 Senior Notes by one or more nationally recognized statistical rating organizations (a “NRSRO”).

8 unchanged sentences

April 30, 2025 - April 29, 2026

As of December 31, 2024, the Company's 2026 Senior 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 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.

The Company is in compliance with such covenants as of December 31, 2024 and through the date of this Annual Report on Form 10-K.

As of December 31, 2025, the Company's 2026 Senior 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 is in compliance with such covenants as of December 31, 2025.

Subordinated Debentures

9 unchanged sentences

As of February 20, 2026, the Company has not been notified, and is not aware, of any event of default under the indenture for the subordinated debentures.

Convertible Notes

As of December 31, 2021, the Company had $ 138.0 million aggregate principal amount of its 6.25 % Senior Convertible Notes due 2022 outstanding.

The Company redeemed the Convertible Notes at maturity for $ 138.0 million on January 15, 2022.

None of the Convertible Notes were converted prior to maturity.

Costs related to the issuance of the Convertible Notes, which included underwriting, legal, accounting and other fees, were reflected as deferred charges.

The underwriter’s discount and deferred charges were amortized as an adjustment to interest expense using the effective interest method, resulting in a total cost to the Company of approximately 8.24 %.

The following table presents interest expense from the Convertible Notes for the year ended December 31, 2022 (dollar amounts in thousands):

For the Year Ended December 31, 2022

Contractual interest expense $ 335

Amortization of underwriter's discount and deferred charges 103

Mortgages Payable on Real Estate

3 unchanged sentences

During the years ended December 31, 2025 and 2024, sales of consolidated multi-family apartment communities resulted in the repayment or assumption of the related mortgages payable ( see Note 8 ).

In February 2024, one entity in which the Company held a joint venture equity investment entered into a debt restructuring agreement with the senior lender for its mortgage payable.

During the year ended December 31, 2024, one entity in which the Company held a joint venture equity investment entered into a debt restructuring agreement with the senior lender for its mortgage payable.

As part of the agreement, the required strike price of the interest rate cap agreement related to the respective mortgage payable increased and a portion of interest payments was deferred until the maturity date.

The restructuring did not result in a change in the carrying amount of the mortgage payable and no gain was recorded.

During the year ended December 31, 2024, the Company sold its joint venture equity investment in the entity, which resulted in the de-consolidation of the mortgage payable subject to the debt restructuring agreement as of December 31, 2024.

The consolidated multi-family apartment communities are subject to mortgages payable collateralized by the associated real estate assets.

5 unchanged sentences

December 31, 2024 368,158 368,158 ( 1,552 ) 366,606 2026 - 2032 4.48 %

Accordingly, mortgages payable on real estate related to certain joint venture equity investments in multi-family properties are included in liabilities of disposal group held for sale on the accompanying consolidated balance sheets as of December 31, 2024 and 2023.

(1) 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.

See Note 9 for additional information.

5 unchanged sentences

Year Ending December 31, Total

2026 $ 125,461

Thereafter 133,758

7 unchanged sentences

These commitments are generally subject to loan agreements with terms that must be met before the Company funds advances on the commitment.

In addition, Constructive had short-term commitments to originate business purpose loans in the amount of $ 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.

As of December 31, 2025, the Company has entered into multi-year lease agreements for office space accounted for as non-cancelable operating leases.

16 unchanged sentences

The following describes the valuation methodologies used for the Company’s financial instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy.

Investment Securities Available for Sale – The Company determines the fair value of its Agency RMBS and non-Agency RMBS based on discounted cash flows utilizing an internal pricing model.

The methodology considers the characteristics of the particular security and its underlying collateral, which are observable inputs.

These inputs include, but are not limited to, delinquency status, coupon, loan-to-value ("LTV"), historical performance, periodic and life caps, collateral type, rate reset period, seasoning, prepayment speeds and credit enhancement levels.

The Company also considers several observable market data points, including prices obtained from third-party pricing services or dealers who make markets in similar financial instruments, trading activity, and dialogue with market participants.

Third-party pricing services typically incorporate commonly used market pricing methods, trading activity observed in the marketplace and other data inputs similar to those used in the Company's internal pricing model.

The Company has established thresholds to compare internally generated prices with independent third-party prices and any differences that exceed the thresholds are reviewed both internally and with the third-party pricing service.

The Company reconciles and resolves all pricing differences in excess of the thresholds before a final price is established.

The Company determines the fair value of its U.S.

Treasury securities using a third-party pricing service that compiles prices from various sources or using pricing models that consider observable market data to determine the fair value of identical or similar securities.

The Company’s investment securities available for sale are valued based upon readily observable market parameters and are classified as Level 2 fair values.

Residential Loans Held in Consolidated SLST – Residential loans held in Consolidated SLST are carried at fair value and classified as Level 3 fair values.

6 unchanged sentences

Significant increases or decreases in these inputs would result in a significantly lower or higher fair value measurement.

Residential Loans and Residential Loans Held in Securitization Trusts – The Company’s acquired residential loans are recorded at fair value and classified as Level 3 in the fair value hierarchy.

Residential Loans, Residential Loans Held in Securitization Trusts and Residential Loans Held for Sale – The Company’s acquired residential loans are recorded at fair value and classified as Level 3 in the fair value hierarchy.

The fair value for residential loans is determined using valuations obtained from a third party that specializes in providing valuations of residential loans.

The valuation approach depends on whether the residential loan is considered performing, re-performing or non-performing at the date the valuation is performed.

The valuation technique depends on whether the residential loan is considered performing, re-performing or non-performing at the date the valuation is performed.

For performing and re-performing loans, estimates of fair value are derived using a discounted cash flow model, where estimates of cash flows are determined from scheduled payments for each loan, adjusted using forecast prepayment rates, default rates and rates for loss upon default.

5 unchanged sentences

The Company reconciles and resolves all pricing differences in excess of the thresholds before a final price is established.

Preferred Equity and Mezzanine Loan Investments – Fair value for preferred equity and mezzanine loan investments is determined by both market comparable pricing and discounted cash flows.

The fair value of certain originated loans, including those held for sale, is determined using non-binding investor prices obtained through an established loan trading process.

Investors provide loan-level pricing indications based on market conditions and underlying loan characteristics, which are received through a competitive bidding process.

These fair value measurements are classified as Level 3 within the fair value hierarchy.

Preferred Equity and Mezzanine Loan Investments – Fair value for preferred equity and mezzanine loan investments is determined using discounted cash flows.

The discounted cash flows are based on the underlying estimated cash flows and estimated changes in market yields.

1 unchanged sentence

This fair value measurement is generally based on unobservable inputs and, as such, is classified as Level 3 in the fair value hierarchy.

Investment Securities Available for Sale – The Company determines the fair value of its Agency RMBS and non-Agency RMBS based on discounted cash flows utilizing an internal pricing model.

The methodology considers the characteristics of the particular security and its underlying collateral, which are observable inputs.

The Company reconciles and resolves all pricing differences in excess of the thresholds before a final price is established.

The Company determines the fair value of its U.S.

The Company’s investment securities available for sale are valued based upon readily observable market parameters and are classified as Level 2 fair values.

Equity Investments – Fair value for equity investments is determined (i) by the valuation process for preferred equity and mezzanine loan investments as described in c.

Equity Investments – Fair value for equity investments is or was determined (i) by the valuation process for preferred equity and mezzanine loan investments as described in d.

above or (ii) using weighted multiples of origination volume and earnings before taxes, depreciation and amortization of the entity and the net asset value ("NAV") of the equity investment entity.

These fair value measurements are generally based on unobservable inputs and, as such, are classified as Level 3 in the fair value hierarchy.

Derivative Instruments – The Company's interest rate swaps, credit default swaps and U.S.

Treasury futures are classified as Level 2 fair values and are measured using valuations reported by the respective central clearing houses.

Derivative Instruments – The Company's interest rate swaps, credit default swaps and futures are classified as Level 2 fair values and are measured using valuations reported by the respective central clearing houses.

The derivatives are presented net of variation margin payments pledged or received.

2 unchanged sentences

The inputs used in the valuation of interest rate caps fall within Level 2 of the fair value hierarchy.

The Company obtains additional third-party valuations for interest rate swaps, credit default swaps, U.S.

Treasury futures and interest rate cap agreements.

The Company obtains additional third-party valuations for interest rate swaps, credit default swaps, futures and interest rate cap agreements.

The Company has established thresholds to compare different independent third-party prices and any differences that exceed the thresholds are reviewed both internally and with the third-party pricing services.

The Company reconciles and resolves all pricing differences in excess of the thresholds before a final price is established.

The fair value of the Company's IRLCs is determined using an internal pricing model that incorporates market pricing for residential loans with similar characteristics to the underlying loans of IRLCs and the probability that the loans will fund under the terms of the commitment (the “pull-through rate”).

Both the market pricing for similar residential loans and the pull-through rate are significant unobservable inputs, therefore the Company's IRLCs are classified as Level 3 in the fair value hierarchy.

Mortgage Servicing Rights – The Company's MSRs are recorded at fair value and are classified as Level 3 in the fair value hierarchy.

9 unchanged sentences

above for a description of the fair valuation of CDOs issued by Consolidated SLST that are eliminated in consolidation.

Fair value for CDOs issued by the Company's residential loan securitizations and non-Agency RMBS re-securitization is determined by the valuation process for investment securities available for sale as described in d .

above and, as such, are classified as Level 2 fair values.

Senior unsecured notes – The Company's 2029 Senior Notes are valued using pricing models that consider observable market data to determine the fair value of identical or similar securities and are classified as Level 2 fair values.

Senior unsecured notes – The Company's 9.875% 2030 Senior Notes, 9.125% 2030 Senior Notes and 2029 Senior Notes are valued using pricing models that consider observable market data to determine the fair value of identical or similar securities and are classified as Level 2 fair values.

Management reviews all prices used in determining fair value to ensure they represent current market conditions.

11 unchanged sentences

Assets carried at fair value

Residential loans:

Residential loans $ — $ — $ 632,266 $ 632,266 $ — $ — $ 827,535 $ 827,535

Consolidated SLST — — 965,672 965,672 — — 754,860 754,860

Residential loans held in securitization trusts — — 2,243,800 2,243,800 — — 1,501,908 1,501,908

Investment securities available for sale:

3 unchanged sentences

Treasury securities — 245,713 — 245,713 — 622,045 — 622,045

Residential loans:

Residential loans — — 583,963 583,963 — — 632,266 632,266

Consolidated SLST — — 1,165,677 1,165,677 — — 965,672 965,672

Residential loans held in securitization trusts — — 2,608,535 2,608,535 — — 2,243,800 2,243,800

Residential loans held for sale

— — 80,707 80,707 — — — —

Multi-family loans — — 55,476 55,476 — — 86,192 86,192

4 unchanged sentences

— 31 — 31 — 56 — 56

— — 691 691 — — — —

Interest rate swaps (2) (4)

2 unchanged sentences

— — — — — — — —

Mortgage servicing rights (2)

Commodity futures (2) (4)

— — — — — — — —

— — 20,893 20,893 — — 21,003 21,003

Assets of disposal group held for sale (3)

17 unchanged sentences

(2) Included in other assets or other liabilities, respectively, in the consolidated balance sheets.

(3) Includes interest rate caps classified as Level 2 instruments in the amount of $ 0.1 million and $ 3.0 million as of December 31, 2024 and 2023, respectively.

(4) All of the Company’s interest rate swaps, credit default swaps and U.S.

Treasury futures are cleared through central clearing houses.

(3) Includes interest rate caps classified as Level 2 instruments in the amount of $ 0.1 million as of December 31, 2024.

(4) All of the Company’s interest rate swaps, credit default swaps and futures are cleared through central clearing houses.

The Company exchanges variation margin for the derivative instruments based upon daily changes in fair value.

6 unchanged sentences

Residential loans

Residential loans Consolidated SLST Residential loans held in securitization trusts Multi-family loans Equity investments Mortgage servicing rights

Residential loans Consolidated SLST Residential loans held in securitization trusts Residential loans held for sale

Multi-family loans Equity investments Assets of disposal group held for sale MSRs

Balance at beginning of period $ 632,266 $ 965,672 $ 2,243,800 $ — $ 86,192 $ 113,492 $ — $ 21,003 $ — $ 4,062,425

2 unchanged sentences

16,576 39,902 47,941 18,974 9,162 ( 3,155 ) — ( 3,656 ) ( 3,611 ) 122,133

Transfers in (1)

580 — — 145,748 — — — 141 4,302 150,771

Transfers out (2)

2 unchanged sentences

( 1,325,733 ) — 1,325,733 — — — — — — —

Transfer from residential loans held for sale to residential loans 474,922 — — ( 474,922 ) — — — — — —

Transfer to disposal group held for sale — — — — — ( 500 ) 500 — — —

Paydowns/Distributions (4)

1 unchanged sentence

Sales ( 156,627 ) — ( 13,223 ) ( 450,317 ) — — ( 500 ) — — ( 620,667 )

Acquisitions (4)

Acquisitions/Repurchases (5)

1,162,556 247,405 161,932 1,414 — — — — — 1,573,307

— — — 840,069 — — — — — 840,069

Balance at the end of period $ 583,963 $ 1,165,677 $ 2,608,535 $ 80,707 $ 55,476 $ 24,711 $ — $ 20,893 $ 691 $ 4,540,653

(1) Transfers out of Level 3 assets represents the transfer of residential loans to real estate owned, single-family rental properties and other assets.

(2) During the year ended December 31, 2024, the Company transferred certain residential loans into residential loan securitizations ( see Note 7 for further discussion of the Company's residential loan securitizations).

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

(1) Transfers into Level 3 include residential loans, residential loans held for sale, MSRs and IRLCs consolidated by the Company following its acquisition of the outstanding membership interests in Constructive that were not previously owned by the Company on July 15, 2025 ( see Note 24 ).

(2) Transfers out of Level 3 assets represent the transfer of residential loans to real estate owned assets and the consolidation of Constructive resulting from the Company's acquisition of the outstanding membership interests in Constructive that were not previously owned by the Company on July 15, 2025 ( see Note 24 ).

(3) During the year ended December 31, 2025, the Company transferred, on a net basis, certain residential loans into residential loan securitizations ( see Note 7 for further discussion of the Company's residential loan securitizations).

(4) Includes in-kind distribution of MSRs received from the Company's Constructive equity investment prior to acquisition on July 15, 2025.

(5) During the year ended December 31, 2025, the Company purchased a first loss subordinated security issued from a securitization that it determined to consolidate as Consolidated SLST.

2 unchanged sentences

Residential loans

Residential loans Consolidated SLST Residential loans held in securitization trusts Multi-family loans Equity investments Equity investments in disposal group held for sale Total

Residential loans Consolidated SLST Residential loans held in securitization trusts Multi-family loans Equity investments MSRs

Balance at beginning of period $ 827,535 $ 754,860 $ 1,501,908 $ 95,792 $ 147,116 $ — $ 3,327,211

5 unchanged sentences

( 1,456,376 ) — 1,456,376 — — — —

Transfer to disposal group held for sale

— — — — 5,720 ( 5,720 ) —

Funding/Contributions — — — 21,924 33,958 — 55,882

Paydowns/Distributions (3)

( 296,645 ) ( 77,768 ) ( 805,586 ) ( 15,499 ) ( 49,803 ) 10,917 ( 1,234,384 )

Sales ( 156,175 ) — ( 6,708 ) — — — ( 162,883 )

Acquisitions (4)

1,779,166 285,057 113,726 — — 9,470 2,187,419

Balance at the end of period $ 632,266 $ 965,672 $ 2,243,800 $ 86,192 $ 113,492 $ 21,003 $ 4,062,425

(1) Transfers out of Level 3 assets represents the transfer of residential loans to real estate owned and the consolidation of a VIE previously classified as an equity investment ( see Note 7 ).

(2) During the year ended December 31, 2023, the Company transferred certain residential loans into residential loan securitizations ( see Note 7 for further discussion of the Company's residential loan securitizations).

(1) Transfers out of Level 3 assets represents the transfer of residential loans to real estate owned, single-family rental properties and other assets.

(2) During the year ended December 31, 2024, the Company transferred, on a net basis, certain residential loans into residential loan securitizations ( see Note 7 for further discussion of the Company's residential loan securitizations).

(3) Includes in-kind distribution of MSRs received from the Company's Constructive equity investment prior to acquisition on July 15, 2025.

(4) During the year ended December 31, 2024, the Company purchased a first loss subordinated security issued from a securitization that it determined to consolidate as Consolidated SLST.

As a result, the Company consolidated assets of the securitization (see Note 7 ).

Year Ended December 31, 2023

13 unchanged sentences

( 21,165 ) — ( 3,979 ) — — ( 25,144 )

550,481 — 69,796 — — — 620,277

Balance at the end of period $ 827,535 $ 754,860 $ 1,501,908 $ 95,792 $ 147,116 $ — $ 3,327,211

(1) Transfers out of Level 3 assets represents the transfer of residential loans to real estate owned.

(2) During the year ended December 31, 2022, the Company transferred certain residential loans into residential loan securitizations ( see Note 7 for further discussion of the Company's residential loan securitizations).

(1) Transfers out of Level 3 assets represents the transfer of residential loans to real estate owned and the consolidation of a VIE previously classified as an equity investment ( see Note 7 ).

(2) During the year ended December 31, 2023, the Company transferred, on a net basis, certain residential loans into residential loan securitizations ( see Note 7 for further discussion of the Company's residential loan securitizations).

The following table details changes in valuation for the Level 3 liabilities for the years ended December 31, 2025, 2024 and 2023, respectively (dollar amounts in thousands):

7 unchanged sentences

Acquisitions (1)

235,226 275,200 —

Paydowns ( 74,146 ) ( 61,130 ) ( 46,476 )

Balance at the end of period $ 1,006,919 $ 811,591 $ 593,737

(1) During the year ended December 31, 2024, the Company purchased a first loss subordinated security issued from a securitization that it determined to consolidate as Consolidated SLST.

As a result, the Company consolidated liabilities of the securitization ( see Note 7 ).

(1) During the years ended December 31, 2025 and 2024, the Company purchased first loss subordinated securities issued from securitizations that it determined to consolidate as Consolidated SLST.

As a result, the Company consolidated liabilities of the securitizations ( see Note 7 ).

The following table discloses quantitative information regarding the significant unobservable inputs used in the valuation of our Level 3 assets and liabilities measured at fair value (dollar amounts in thousands, except input values):

1 unchanged sentence

Residential loans:

Residential loans and residential loans held in securitization trusts (1)

Residential loans, residential loans held in securitization trusts and residential loans held for sale:

$ 2,952,490 Discounted cash flow Lifetime CPR 10.3 % — - 45.5 %

Lifetime CDR 0.6 % — - 24.0 %

0.7 % — - 26.4 %

Loss severity 12.8 % — - 100.0 %

4 unchanged sentences

Yield 8.7 % 7.5 % - 100.0 %

$ 211,576 Transaction price Non-binding investor price N/A

Consolidated SLST (4)

12 unchanged sentences

10.1 % 0.2 % - 28.9 %

Lifetime CDR 2.2 % — - 39.8 %

2.4 % — - 41.8 %

Yield 12.2 % 12.0 % - 14.0 %

$ 691 Probability-weighted expected cash flow

Pull-through rate

77.4 % 77.0 % - 78.9 %

Consolidated SLST CDOs (3) (4)

6 unchanged sentences

Unobservable inputs do not include inputs related to this multi-family loan.

(3) Equity investments do not include equity ownership interests in an entity that originates residential loans.

The fair value of this investment is determined using weighted multiples of origination volume and earnings before taxes, depreciation and amortization and NAV of the entity.

(3) In accordance with the practical expedient in ASC 810, the Company determines the fair value of the residential loans held in Consolidated SLST based on the fair value of the CDOs issued by Consolidated SLST, including investment securities we own, as the fair value of these instruments is more observable.

12 unchanged sentences

46,675 ( 10,005 ) 56,576

Residential loans held for sale (1)

Multi-family loans (1)

2 unchanged sentences

( 6,873 ) ( 6,319 ) ( 7,958 )

Equity investments in disposal group held for sale (2)

( 3,611 ) — —

Mortgage servicing rights (1)

( 3,656 ) 616 —

Consolidated SLST CDOs (1)

$ ( 32,710 ) $ ( 5,709 ) $ ( 1,930 )

(1) Presented in unrealized (losses) gains, net on the Company’s consolidated statements of operations.

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

(1) Presented in unrealized gains (losses), net on the Company’s consolidated statements of operations.

(2) Presented in (loss) income from equity investments on the Company’s consolidated statements of operations.

The following table presents the carrying value and estimated fair value of the Company’s financial instruments at December 31, 2025 and 2024, respectively (dollar amounts in thousands):

6 unchanged sentences

Cash and cash equivalents Level 1 $ 210,333 $ 210,333 $ 167,422 $ 167,422

Residential loans Level 3 3,841,738 3,841,738 3,084,303 3,084,303

Investment securities available for sale Level 2 6,904,781 6,904,781 3,828,544 3,828,544

Residential loans Level 3 4,358,175 4,358,175 3,841,738 3,841,738

Residential loans held for sale

80,707 80,707 — —

Multi-family loans Level 3 55,476 55,476 86,192 86,192

30 unchanged sentences

(a) Preferred Stock

The Company had 200,000,000 authorized shares of preferred stock, par value $ 0.01 per share (the “Preferred Stock”), with 22,164,414 shares issued and outstanding as of December 31, 2024 and 2023.

The Company had 200,000,000 authorized shares of preferred stock, par value $ 0.01 per share (the “Preferred Stock”), with 22,385,674 and 22,164,414 shares issued and outstanding as of December 31, 2025 and 2024, respectively.

As of December 31, 2025, the Company has four outstanding series of cumulative redeemable preferred stock:

3 unchanged sentences

The program, which expires on March 31, 2027, allows the Company to make repurchases of shares of Preferred Stock, from time to time, in open market transactions, through privately negotiated transactions or block trades or other means, in accordance with applicable securities laws and the rules and regulations of Nasdaq.

The Company did not repurchase any shares of its preferred stock during the year ended December 31, 2024.

During the year ended December 31, 2023, the Company repurchased 16,177 shares of Series D Preferred Stock, 68,348 shares of Series E Preferred Stock, 9,791 shares of Series F Preferred Stock and 26,264 shares of Series G Preferred Stock pursuant to the preferred stock repurchase program for a total cost of approximately $ 2.4 million, including fees and commissions paid to the broker, representing an average repurchase price of $ 20.29 per preferred share.

The difference between the consideration transferred and the carrying value of the preferred stock resulted in a gain attributable to common stockholders of approximately $ 0.5 million during the year ended December 31, 2023.

The Company did not repurchase any shares of its preferred stock during the years ended December 31, 2025 and 2024.

As of December 31, 2025, $ 97.6 million of the approved amount remained available for the repurchase of shares of Preferred Stock under the preferred stock repurchase program.

The following table summarizes the Company’s Preferred Stock issued and outstanding as of December 31, 2024 and 2023 (dollar amounts in thousands):

The following tables summarize the Company’s Preferred Stock issued and outstanding as of December 31, 2025 and 2024, respectively (dollar amounts in thousands):

December 31, 2025

Class of Preferred Stock Shares Authorized Shares Issued and Outstanding Carrying Value Liquidation Preference Contractual Rate (1)

2 unchanged sentences

Floating Annual Rate (4) (5)

Rate as of Period End

Fixed-to-Floating Rate

Series D 8,400,000 6,147,274 $ 148,585 $ 153,682 8.000 % October 15, 2027 October 15, 2027 3M LIBOR + 5.695 %

Series E 9,900,000 7,343,151 177,697 183,579 7.875 % January 15, 2025 January 15, 2025 3M LIBOR + 6.429 %

Series E 9,900,000 7,456,749 180,453 186,419 7.875 % January 15, 2025 January 15, 2025 3M SOFR + tenor spread adjustment of 0.26161 % + 6.429 %

Series F 7,750,000 5,804,794 139,792 145,120 6.875 % October 15, 2026 October 15, 2026 3M SOFR + 6.130 %

1 unchanged sentence

Total 31,500,000 22,385,674 $ 540,472 $ 559,642

December 31, 2024

Class of Preferred Stock Shares Authorized Shares Issued and Outstanding Carrying Value Liquidation Preference Contractual Rate (1)

Optional Redemption Date (2)

Fixed-to-Floating Rate Conversion Date (1)(3)

Floating Annual Rate (4) (5)

Rate as of Period End

Fixed-to-Floating Rate

Series D 8,400,000 6,107,318 $ 147,745 $ 152,683 8.000 % October 15, 2027 October 15, 2027 3M LIBOR + 5.695 %

Series E 9,900,000 7,343,151 177,697 183,579 7.875 % January 15, 2025 January 15, 2025 3M SOFR + tenor spread adjustment of 0.26161 % + 6.429 %

Series F 7,750,000 5,740,209 138,418 143,505 6.875 % October 15, 2026 October 15, 2026 3M SOFR + 6.130 %

Series G 5,450,000 2,973,736 71,585 74,343 7.000 % January 15, 2027 7.000 %

Total 31,500,000 22,164,414 $ 535,445 $ 554,110

(1) The Company's fixed rate preferred stock is entitled to receive a dividend at the contractual rate shown, per year on its $ 25 liquidation preference.

63 unchanged sentences

During 2025, aggregate dividends for our common stock were $ 0.86 per share.

federal income tax purposes, the 2024 dividends were classified as return of capital in the amount of $ 0.80 per share and the January 2025 cash distribution in the amount of $ 0.20 per share, that was declared in December 2024, is treated as a 2025 distribution.

federal income tax purposes, the 2025 dividends were classified as ordinary income, capital gain distribution and return of capital in the amounts of $ 0.67 , $ 0.10 and $ 0.06 , respectively, per share.

The January 2026 cash distribution in the amount of $ 0.23 per share, that was declared in December 2025, is treated as a 2026 distribution.

During 2024, aggregate dividends for our common stock were $ 0.80 per share.

1 unchanged sentence

During 2023, aggregate dividends for our common stock were $ 1.20 per share.

federal income tax purposes, the 2022 dividends were classified as ordinary income and return of capital in the amounts of $ 0.60 and $ 1.00 , respectively, per share.

federal income tax purposes, the 2023 dividends were classified as return of capital in the amounts of $ 1.00 per share and the January 2024 cash distribution in the amount of $ 0.20 per share, that was declared in December 2023, is treated as a 2024 distribution.

(e) Equity Distribution Agreements

3 unchanged sentences

As of December 31, 2025, approximately $ 100.0 million of common stock remains available for issuance under the Common Equity Distribution Agreement.

On March 29, 2019, the Company entered into an equity distribution agreement (the "Preferred Equity Distribution Agreement"), most recently amended on March 2, 2022, with a sales agent, pursuant to which the Company may offer and sell shares of its Preferred Stock, having a maximum aggregate gross sales price of up to $ 149.1 million from time to time through the sales agent.

On June 13, 2025, the Company entered into an equity distribution agreement (the “Preferred Equity Distribution Agreement”) with a sales agent, pursuant to which the Company may offer and sell shares of its Preferred Stock, having a maximum aggregate gross sales price of up to $ 50.0 million from time to time through the sales agent.

The Company has no obligation to sell any of the shares of Preferred Stock issuable under the Preferred Equity Distribution Agreement and may at any time suspend solicitations and offers under the Preferred Equity Distribution Agreement.

There were no shares of Preferred Stock issued under the Preferred Equity Distribution Agreement during the years ended December 31, 2024, 2023 and 2022.

The Preferred Equity Distribution Agreement replaced the Company's prior preferred equity distribution agreement with a sales agent dated March 29, 2019, as amended on March 2, 2022 (collectively, the “Prior Preferred Equity Distribution Agreement”), pursuant to which approximately $ 100.0 million of aggregate value of the Company's preferred stock remained available for issuance prior to termination.

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.

There were no shares of Preferred Stock issued under the Prior Preferred Equity Distribution Agreement during the years ended December 31, 2024 and 2023.

As of December 31, 2025, approximately $ 44.9 million of Preferred Stock remains available for issuance under the Preferred Equity Distribution Agreement.

Loss Per Common Share

The Company calculates basic loss per common share by dividing net loss attributable to the Company’s common stockholders for the period by weighted-average shares of common stock outstanding for that period.

Diluted loss per common share takes into account the effect of dilutive instruments, such as PSUs, RSUs, DSUs and Convertible Notes, and the number of incremental shares that are to be added to the weighted-average number of shares outstanding.

The Company redeemed the Convertible Notes at maturity in the amount of $ 138.0 million on January 15, 2022.

During the year ended December 31, 2022, the Company's Convertible Notes were determined to be anti-dilutive and were not included in the calculation of diluted loss per common share.

Earnings (Loss) Per Common Share

The Company calculates basic earnings (loss) per common share by dividing net income (loss) attributable to the Company’s common stockholders for the period by weighted-average shares of common stock outstanding for that period.

Diluted earnings (loss) per common share takes into account the effect of dilutive instruments, such as PSUs, RSUs and DSUs, and the number of incremental shares that are to be added to the weighted-average number of shares outstanding.

During the year ended December 31, 2025, certain of the PSUs, RSUs and DSUs awarded under the 2017 Plan were determined to be dilutive and were included in the calculation of diluted earnings per common share under the treasury stock method.

Under this method, common equivalent shares are calculated assuming that target PSUs and outstanding RSUs and DSUs vest according to the respective PSU, RSU and DSU agreements and unrecognized compensation cost is used to repurchase shares of the Company’s outstanding common stock at the average market price during the reported period.

During the years ended December 31, 2024 and 2023, the PSUs and RSUs awarded under the 2017 Plan were determined to be anti-dilutive and were not included in the calculation of diluted loss per common share.

During the year ended December 31, 2024 the DSUs awarded under the 2017 Plan were determined to be anti-dilutive and were not included in the calculation of diluted loss per common share.

The following table presents the computation of basic and diluted loss per common share for the periods indicated (dollar and share amounts in thousands, except per share amounts):

The following table presents the computation of basic and diluted earnings (loss) per common share for the periods indicated (dollar and share amounts in thousands, except per share amounts):

For the Years Ended December 31,

2025 2024 2023

Basic Loss per Common Share:

Net loss attributable to Company

Basic Earnings (Loss) per Common Share:

Net income (loss) attributable to Company

$ 149,048 $ ( 62,029 ) $ ( 48,665 )

1 unchanged sentence

Gain on repurchase of Preferred Stock — — 467

Net loss attributable to Company’s common stockholders

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

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

1 unchanged sentence

90,427 90,815 91,042

Basic Loss per Common Share

Basic Earnings (Loss) per Common Share

$ 1.12 $ ( 1.14 ) $ ( 0.99 )

Diluted Loss per Common Share:

Net loss attributable to Company

Diluted Earnings (Loss) per Common Share:

Net income (loss) attributable to Company

$ 149,048 $ ( 62,029 ) $ ( 48,665 )

1 unchanged sentence

Gain on repurchase of Preferred Stock — — 467

Net loss attributable to Company’s common stockholders

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

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

1 unchanged sentence

90,427 90,815 91,042

Net effect of assumed PSUs vested

Net effect of assumed RSUs and DSUs vested

Diluted weighted average common shares outstanding

91,510 90,815 91,042

Diluted Loss per Common Share

Diluted Earnings (Loss) per Common Share

$ 1.10 $ ( 1.14 ) $ ( 0.99 )

9 unchanged sentences

The Company’s employees had been issued 1,475,184 shares of restricted stock under the 2017 Plan as of December 31, 2024.

At December 31, 2023, there were 524,570 shares of non-vested restricted stock outstanding, 1,802,352 common shares reserved for issuance in connection with outstanding PSUs under the 2017 Plan and 351,974 common shares reserved for issuance in connection with outstanding RSUs under the 2017 Plan.

At December 31, 2024, there were 538,159 shares of non-vested restricted stock outstanding, 1,879,052 common shares reserved for issuance in connection with outstanding PSUs under the 2017 Plan, 450,600 common shares reserved for issuance in connection with outstanding RSUs under the 2017 Plan and 110,772 common shares reserved for issuance in connection with outstanding DSUs under the 2017 Plan .

(a) Restricted Common Stock Awards

35 unchanged sentences

Each vested DER entitles the holder to receive payments in an amount equal to any dividends paid by the Company in respect of the share of the Company’s common stock underlying the PSU to which such DER relates.

Upon vesting of the PSUs, the DER will also vest.

Upon vesting of the PSUs, the DERs will also vest.

DERs will be forfeited upon forfeiture of the corresponding PSUs.

The DERs may be settled in cash or stock at the discretion of the Compensation Committee.

The DERs that vested during the years ended December 31, 2024 and 2023 were settled in cash.

The DERs that vested during the year ended December 31, 2024 were settled in cash.

A summary of the activity of the target PSU awards under the 2017 Plan for the years ended December 31, 2025, 2024 and 2023, respectively, is presented below:

16 unchanged sentences

(1) The grant date fair value of the PSUs was determined through a Monte-Carlo simulation of the Company’s common stock total shareholder return and the common stock total shareholder return of its identified performance peer companies to determine the relative total shareholder return of the Company’s common stock over a future period of three years .

The three-year performance period for PSUs granted in 2021 ended on December 31, 2023, resulting in the vesting of 441,973 shares of common stock during the year ended December 31, 2024 with a fair value of $ 3.6 million on the vesting date.

The number of vested shares related to PSUs granted in 2021 was greater than the target PSUs of 350,886 .

The three-year performance period for PSUs granted in 2022 ended on December 31, 2024 and the relative total shareholder return of the Company's common stock did not exceed the threshold amount for the performance period.

Accordingly, all PSUs granted in 2022 did no t vest and target PSUs of 188,729 were forfeited during the year ended December 31, 2025.

The number of vested shares related to PSUs granted in 2020 was less than the target PSUs of 201,978 .

The number of vested shares related to PSUs granted in 2021 was greater than the target PSUs of 350,886 .

The three-year performance period for PSUs granted in 2020 ended on December 31, 2022, resulting in the vesting of 161,577 shares of common stock during the year ended December 31, 2023 with a fair value o f $ 2.0 million o n the vesting date.

41 unchanged sentences

(d) Deferred Stock Units

During the year ended December 31, 2024 , the Company granted DSUs that had been approved by the Compensation Committee and the Board of Directors to non-employee directors.

Each DSU represents an unfunded promise to receive one share of the Company's common stock, subject to the non-employee director's continued service on the Board of Directors through the day immediately preceding the annual meeting of the Company's stockholders in the year subsequent to the grant date.

During the years ended December 31, 2025 and 2024, the Company granted DSUs that had been approved by the Compensation Committee and the Board of Directors to non-employee directors.

Under the 2017 Plan, each DSU represents an unfunded promise to receive one share of the Company's common stock, subject to the non-employee director's continued service on the Board of Directors through the day immediately preceding the annual meeting of the Company's stockholders in the year subsequent to the grant date.

Non-vested DSUs are forfeited upon the recipient's termination of service on the Company's Board of Directors.

4 unchanged sentences

The DERs may be settled in cash or stock at the discretion of the Compensation Committee.

A summary of the activity of the DSU awards under the 2017 Plan for the year ended December 31, 2024 is presented below:

The DERs that vested during the year ended December 31, 2025 were settled in cash.

A summary of the activity of the DSU awards under the 2017 Plan for the years ended December 31, 2025 and 2024, respectively, is presented below:

Shares Weighted

1 unchanged sentence

Fair Value (1)

Shares Weighted

Average Per Share

Fair Value (1)

Non-vested DSUs as of January 1 110,772 $ 6.50 — $ —

Granted 112,068 6.96 110,772 6.50

( 110,772 ) 6.50 — —

Non-vested DSUs as of December 31

1 unchanged sentence

(1) The grant date fair value of DSUs is based on the closing market price of the Company’s common stock at the grant date.

As of December 31, 2024, there was $ 0.4 million of unrecognized compensation cost related to the non-vested portion of the DSUs.

Non-employee directors may elect to defer issuance of shares of common stock in connection with the vesting of DSUs.

During the year ended December 31, 2025, 110,772 DSUs vested at a fair value of $ 0.8 million on the vesting date, of which 18,462 shares of common stock were issued at a fair value of $ 0.1 million.

92,310 common shares remain reserved for issuance in connection with vested DSUs as of December 31, 2025.

As of December 31, 2025 and 2024, there was $ 0.3 million and $ 0.4 million of unrecognized compensation cost related to the non-vested portion of the DSUs, respectively.

The unrecognized compensation cost related to the non-vested portion of the DSUs at December 31, 2025 is expected to be recognized over a weighted average period of 0.4 years.

Compensation expense related to the DSUs was $ 0.3 million for the year ended December 31, 2024.

Compensation expense related to the DSUs was $ 0.8 million and $ 0.3 million for the year ended December 31, 2025 and 2024, respectively.

For the years ended December 31, 2025, 2024 and 2023, the Company qualified to be taxed as a REIT under the Internal Revenue Code for U.S.

12 unchanged sentences

Total current income tax provision 242 121 296

Deferred income tax provision (benefit)

Deferred income tax (benefit) provision

Federal ( 86 ) 866 ( 136 )

State ( 11 ) 49 ( 85 )

Total deferred income tax provision (benefit)

Total deferred income tax (benefit) provision

( 97 ) 915 ( 221 )

1 unchanged sentence

The Company’s effective income tax rate differs from the statutory U.S.

federal rate as a result of state and local taxes, non-taxable REIT income, valuation allowance and other differences.

federal rate as a result of state and local taxes, non-taxable REIT income, changes in valuation allowance and other differences.

A reconciliation of the statutory income tax provision to the effective income tax provision for the years ended December 31, 2025, 2024 and 2023, respectively, are as follows (dollar amounts in thousands).

1 unchanged sentence

2025 2024 2023

Benefit at statutory rate

Provision (benefit) at statutory rate

$ 31,331 21.0 % $ ( 12,808 ) 21.0 % $ ( 10,204 ) 21.0 %

Non-taxable REIT loss

Non-taxable REIT (income) loss

( 31,998 ) ( 21.4 ) 13,007 ( 21.3 ) 6,901 ( 14.2 )

State and local tax provision (benefit)

State and local tax provision (1)

217 0.1 91 ( 0.1 ) 296 ( 0.6 )

Other 825 0.6 ( 462 ) 0.8 ( 3,366 ) 6.9

Valuation allowance 1,208 ( 2.0 ) 6,448 ( 13.3 ) 13,620 ( 4.0 )

Changes in valuation allowance

( 230 ) ( 0.2 ) 1,208 ( 2.0 ) 6,448 ( 13.3 )

Total provision $ 145 0.1 % $ 1,036 ( 1.6 ) % $ 75 ( 0.2 ) %

(1) State taxes in Texas and South Carolina for the year ended December 31, 2025 and in Texas and New York for the years ended December 31, 2024 and 2023 made up the majority (greater than 50%) of the tax effect in this category.

The following table details the amounts of income taxes paid (net of refunds received) to each jurisdiction for the years ended December 31, 2025, 2024 and 2023, respectively (dollar amounts in thousands):

For the Years Ended December 31,

2025 2024 2023

Federal $ 296 $ 38 $ 74

States ( 78 ) ( 70 ) 151

Cash paid (refunds received) for income taxes $ 218 $ ( 32 ) $ 225

Deferred Tax Assets and Liabilities

4 unchanged sentences

Capital loss carryover 21,676 16,259

GAAP/Tax basis differences 11,346 2,989

GAAP/Tax differences

Residential loans

Interest expense limitation carryforward

Investment securities

Total GAAP/Tax differences

Deferred tax assets

3 unchanged sentences

Net deferred tax assets (1)

14,441 10,864

Deferred tax liabilities

GAAP/Tax basis differences 9,282 2,012

GAAP/Tax differences

Investment securities available for sale

Goodwill and intangible assets

Mortgage servicing rights

Total GAAP/Tax differences

Deferred tax liabilities (2)

6 unchanged sentences

Additionally, as of December 31, 2025, the Company, through its wholly-owned TRSs, had also incurred approximately $ 91.2 million in capital losses.

The Company’s carryforward capital losses will expire between 2025 and 2029 if they are not offset by future capital gains.

The Company’s carryover capital losses will expire between 2026 and 2030 if they are not offset by future capital gains.

As of December 31, 2025, the Company has recorded a valuation allowance against certain deferred tax assets as management does not believe that it is more likely than not that these deferred tax assets will be realized.

The change in the valuation for the current year is an increase of approximately $ 1.2 million.

The valuation allowance was primarily related to U.S.

federal deferred tax assets resulting from net operating loss carryforward and capital loss carryover.

The change in the valuation for the current year is a decrease of approximately $ 0.2 million.

We will continue to monitor positive and negative evidence related to the utilization of the remaining deferred tax assets for which a valuation allowance continues to be provided.

The Company's deferred tax assets without a valuation allowance are more likely than not to be realized given the expectation of future taxable income.

The Company files income tax returns with the U.S.

4 unchanged sentences

To the extent that the Company incurs interest and accrued penalties in connection with its tax obligations, including expenses related to the Company’s evaluation of unrecognized tax positions, such amounts will be included in income tax expense.

During the years ended December 31, 2025 and 2024, the Company recognized interest and penalties in the amount of approximately $ 3.1 thousand and $ 35.5 thousand, respectively.

The Company did not incur interest and penalties for the year ended December 31, 2023.

Recent Tax Law Changes

On July 4, 2025, the legislation known as the One Big Beautiful Bill Act (the “OBBBA”) was signed into law.

The OBBBA made significant changes to the U.S.

federal income tax law that impact REITs and their investors.

Specifically, the OBBBA increases the REIT asset test limitation on the value of TRS securities a REIT may hold from 20% to 25% for taxable years beginning after December 31, 2025.

As a result, for taxable years beginning after December 31, 2025, the aggregate value of all securities of TRSs held by a REIT may not exceed 25% of the value of its total assets.

The OBBBA also makes permanent the 20% deduction for “qualified REIT dividends” (i.e., REIT dividends other than capital gain dividends and portions of REIT dividends designated as qualified dividend income) for individuals, trusts, and estates that was set to sunset for taxable years beginning after December 31, 2025.

In addition, for taxable years beginning after December 31, 2024, the OBBBA restored the exclusion of deductions for depreciation, depletion and amortization in the calculation of a taxpayer’s “adjusted taxable income” for purposes of calculating the limitation on the taxpayer’s net interest expense deduction, which was previously in effect for taxable years beginning before January 1, 2022.

Net Interest Income

3 unchanged sentences

Interest income

Investment securities available for sale $ 316,737 $ 163,977 $ 57,514

Residential loans

4 unchanged sentences

264,495 219,365 185,741

Investment securities available for sale 163,977 57,514 15,825

Residential loans held for sale 5,244 — —

Multi-family loans

3 unchanged sentences

Interest expense

Repurchase agreements

Repurchase agreements and warehouse facilities

253,960 183,285 91,814

7 unchanged sentences

Subordinated debentures 3,802 4,236 4,154

Convertible notes — — 438

Total interest expense 452,647 317,425 192,134

3 unchanged sentences

2025 2024 2023

Servicing fee income

$ 8,036 $ 906 $ —

Gain on sale of real estate (1)

1 unchanged sentence

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

Servicing fee income

Preferred equity and mezzanine loan premiums resulting from early redemption 196 390 3,950

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

( 2,864 ) ( 796 ) 2,214

Provision for uncollectible receivables (2)

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

( 884 ) ( 2,864 ) ( 796 )

Miscellaneous income (loss)

Miscellaneous (2)

434 ( 2,843 ) 769

3 unchanged sentences

(2) During the year ended December 31, 2024, the Company recorded a provision for uncollectible receivables for asset management expenses incurred related to a non-accrual multi-family loan that are in excess of anticipated redemption proceeds ( see Note 5) .

Business Combination

On July 15, 2025, (the "Acquisition Date"), the Company, through a wholly-owned subsidiary, acquired the outstanding ownership interests in Constructive that were not previously owned by the Company through the consummation of a membership interest purchase agreement, thereby increasing the Company's ownership of Constructive to 100 %.

Constructive is a business purpose loan lender specializing in rental and transitional loans for real estate investors.

In increasing the Company's ownership of Constructive to 100 %, the Company bolstered its access to Constructive's proprietary origination channels and third-party distribution network.

The results of Constructive's operations have been included in the consolidated financial statements since the Acquisition Date.

The estimated Acquisition Date fair value of the consideration transferred totaled approximately $ 67.8 million, which consisted of the following (dollar amounts in thousands):

Holdback for representations and warranties (2)

Fair value of previously held membership interests

Total consideration transferred

(1) Includes initial cash consideration of approximately $ 31.5 million and a post-closing working capital adjustment of approximately $ 15.1 thousand which was delivered to the sellers of Constructive on September 24, 2025.

(2) The holdback for representations and warranties in the amount of $ 2.5 million is to be released to the sellers, net of losses incurred or sustained by the Company related to representation or warranties made by the sellers for conditions that existed as of the Acquisition Date, if any, on January 15, 2027.

Prior to the Acquisition Date, the Company owned 50 % of the outstanding ownership interests in Constructive which it accounted for as an equity method investment, utilizing the fair value election ( see Note 6 ).

The Acquisition Date fair value of the Company's previously held ownership interest in Constructive was approximately $ 33.8 million and is included in the measurement of consideration transferred.

The Company determined the estimated fair value of its previously held ownership interests in Constructive using weighted multiples of origination volume and earnings before taxes, depreciation and amortization and NAV of the entity.

Also prior to the Acquisition Date, the Company purchased business purpose loans from Constructive ( see Note 6 ).

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed by the Company at the Acquisition Date (dollar amounts in thousands).

The membership interest purchase agreement included a post-closing working capital adjustment that was calculated as approximately $ 15.1 thousand and was settled with the sellers of Constructive on September 24, 2025.

The holdback for representations and warranties described above will be settled with the sellers of Constructive after the Acquisition Date.

The Company has also engaged a third party specialist for valuations of certain intangible assets.

Thus, the provisional measurements of assets and liabilities are subject to change.

Residential loans

Residential loans held for sale

Restricted cash (1)

Intangible assets (1)

Total identifiable assets acquired

Repurchase agreements and warehouse facilities

Other liabilities

Total liabilities assumed

Net identifiable assets acquired

Net assets acquired

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

The approximately $ 18.0 million of identified intangible assets were recognized at estimated fair value on the Acquisition Date.

Intangible assets haven been provisionally assigned as shown in the following table (dollar amounts in thousands).

As noted earlier, the fair values of the acquired identifiable intangible assets are provisional pending final valuations for these assets.

Intangible asset

Acquisition Date Fair Value

Accumulated Amortization

Carrying Value at December 31, 2025

Amortization Period (Years)

Customer relationships

$ 17,000 $ ( 779 ) $ 16,221 10

1,000 ( 42 ) 958 11

Total identified intangible assets (weighted average amortization period)

$ 18,000 $ ( 821 ) $ 17,179 10.06

During the year ended December 31, 2025, the Company recognized $ 0.8 million of amortization expense related to these intangible assets, which is included in general and administrative expenses on the Company's consolidated statements of operations.

The estimated amortization expense related to the acquired identifiable intangible assets is as follows (dollar amounts in thousands):

Amortization expense for

Year Ending December 31, Customer relationships

2026 $ 1,700 $ 91

2027 $ 1,700 $ 91

2028 $ 1,700 $ 91

2029 $ 1,700 $ 91

2030 $ 1,700 $ 91

The $ 22.4 million of goodwill recognized is attributable primarily to the expected benefits arising from synergies with the Company's existing operations, the assembled workforce of Constructive and the anticipated growth opportunities from expanding the Company's business purpose lending platform and is assigned to the Constructive reporting unit ( see Note 25 ) for the Company's ongoing evaluation of goodwill for impairment in accordance with ASC 350 .

As of December 31, 2025, there was a change in the recognized amount of goodwill as a result of payment of the post-closing working capital adjustment of approximately $ 15.1 thousand.

As noted earlier, the goodwill recorded is provisional pending final valuations of assets and losses incurred or sustained by the Company related to representation or warranties made by the sellers as of the Acquisition Date.

The amount of revenue of Constructive included in the Company's consolidated statements of operations for the period from the Acquisition Date through December 31, 2025 is $ 30.0 million.

See Note 25 for the amount of net income of Constructive included in the Company's consolidated statements of operations for the period from the Acquisition Date through December 31, 2025.

The Company recognized acquisition-related costs of approximately $ 1.3 million, which are included in portfolio operating expenses on the consolidated statements of operations.

The following table presents the pro forma consolidated revenue and net income (loss) attributable to the Company's common stockholders as if Constructive had been included in the consolidated results of the Company for the years ended December 31, 2025 and 2024, respectively (dollar amounts in thousands):

For the Years Ended December 31,

$ 562,684 $ 381,979

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

$ 115,136 $ ( 94,788 )

Basic proforma earnings (loss) per common share

$ 1.27 $ ( 1.04 )

Diluted pro forma earnings (loss) per common share

$ 1.26 $ ( 1.04 )

These amounts have been calculated after applying the Company's accounting policies and adjustments for consolidation and amortization that would have been recorded assuming the estimated fair value adjustments to intangible assets had been applied on January 1, 2024.

Nonrecurring pro forma adjustments directly attributable to the business combination have been included in the pro forma revenue and net income (loss) attributable to the Company's common stockholders shown above as if the transaction occurred on January 1, 2024.

These adjustments include acquisition expenses and estimated income tax expense.

Segment Reporting

The Company is in the business of acquiring, investing in, financing and managing primarily mortgage-related single-family and multi-family residential assets (the “investment portfolio”) in the United States and derives its revenues from management of the investment portfolio.

The Company’s chief operating decision maker (“CODM”) is the Company’s Chief Executive Officer.

The operating results of the Company’s investment portfolio, which includes residential loans, investment securities, multi-family loans and equity investments, including joint venture equity investments in multi-family properties, are regularly reviewed, in the aggregate, by the CODM based upon total assets reported on the consolidated balance sheets and net income (loss) reported on the consolidated statements of operations.

The CODM also considers significant, and regularly reviews, consolidated salaries and benefits expense in the amounts of approximately $ 33.3 million, $ 35.2 million and $ 38.4 million for the years ended December 31, 2024, 2023 and 2022, respectively, which is included in general and administrative expenses in the accompanying consolidated statements of operations.

The CODM utilizes the information reviewed to evaluate Company financial performance, benchmark Company results to those of its peers and monitor actual performance against projected performance.

Net income (loss) is a key determinant of the Company’s book value (calculated as the Company’s stockholders’ equity attributable to common stockholders divided by outstanding common shares), a measure that is used by the CODM to evaluate Company performance overall and with respect to its peers and which is a component of the calculation of management’s compensation.

Based upon the inputs discussed above, investment portfolio strategy and financing and capital and resource allocations rely on the determination of the CODM.

Accordingly, the Company consists of a single operating and reporting segment and the consolidated financial statements and notes thereto are presented as a single reportable segment.

As of December 31, 2025, the Company operates in two reportable segments:

(i) investment portfolio and (ii) Constructive.

The accounting policies applied to the segments are the same as those described in Note 2 , with the exception of allocations of certain corporate expenses not directly assigned or allocated to one of the Company's two reportable segments.

The activities within Corporate/Other are reconciling items to the consolidated financial statements and primarily consist of general and administrative expenses not directly attributable to Constructive, interest expense on senior unsecured notes and subordinated debentures ( see Note 15 ), financing transaction costs unrelated to securitizations and preferred stock dividends.

The Company is in the business of acquiring, investing in, financing and managing primarily mortgage-related residential assets (the “investment portfolio”), which includes residential loans, investment securities, multi-family loans and equity investments and single-family rental properties.

The Company derives revenues from management of the investment portfolio, including interest income, net income (loss) from real estate and other income.

On July 15, 2025, the Company acquired the outstanding 50 % ownership interests in Constructive through the consummation of a membership interest purchase agreement.

Constructive is a business purpose loan lender specializing in rental and transitional loans for real estate investors that derives revenues from the origination and sale of loans.

In the normal course of business, business purpose loans are originated by Constructive and may subsequently be transferred to the investment portfolio segment as whole loans.

All business purpose loans are accounted for under the fair value option and amounts transferred between reportable segments are accounted for at fair value at the time of transfer.

The structure of the reportable segments is differentiated by the nature of the business activities, which is consistent with the reporting structure of the Company and the financial information provided to the Company’s chief operating decision maker (“CODM”).

The CODM is the Company’s Chief Executive Officer.

The operating results of the Company’s investment portfolio and Constructive are regularly reviewed by the CODM based upon segment assets and net income (loss) before income taxes.

The CODM utilizes the information reviewed to evaluate financial performance, benchmark results to those of peers and monitor actual performance against projected performance.

Net income (loss) before income taxes is a key determinant of the Company’s book value (calculated as the Company’s stockholders’ equity attributable to common stockholders divided by outstanding common shares), a measure that is used by the CODM to evaluate Company performance overall and with respect to its peers and which is a component of the calculation of management’s compensation.

Based upon the inputs discussed above, strategy and financing and capital and resource allocations rely on the determination of the CODM.

Prior to the acquisition of a controlling financial interest in Constructive in July 2025, the Company consisted of a single operating and reporting segment and the consolidated financial statements and notes thereto were a single reportable segment.

For the years ended December 31, 2024 and 2023, the CODM also considered significant, and regularly reviewed, consolidated salaries and benefits expense in the amounts of approximately $ 33.3 million and $ 35.2 million, respectively, which is included in general and administrative expenses in the accompanying consolidated statements of operations.

The following table presents 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):

Investment Portfolio

Constructive Corporate/Other

NET INTEREST INCOME:

Interest income $ 596,537 $ 5,343 $ 68 $ 601,948

Interest expense 418,838 5,009 28,800 452,647

Total net interest income (loss)

177,699 334 ( 28,732 ) 149,301

NET LOSS FROM REAL ESTATE:

Rental income 66,025 — — 66,025

Other real estate income 10,309 — — 10,309

Total income from real estate 76,334 — — 76,334

Interest expense, mortgages payable on real estate 21,581 — — 21,581

Depreciation and amortization 23,125 — — 23,125

Other real estate expenses 44,045 — — 44,045

Total expenses related to real estate 88,751 — — 88,751

Total net loss from real estate ( 12,417 ) — — ( 12,417 )

OTHER INCOME:

Realized losses, net ( 65,428 ) — — ( 65,428 )

Unrealized gains (losses), net

220,438 — ( 3,043 ) 217,395

(Losses) gains on derivative instruments, net ( 66,560 ) ( 1,943 ) 10,200 ( 58,303 )

Mortgage banking activities, net — 26,621 — 26,621

Loss from equity investments

( 1,614 ) — ( 1,554 ) ( 3,168 )

Impairment of real estate ( 9,767 ) — — ( 9,767 )

16,509 — — 16,509

Total other income

93,578 24,678 5,603 123,859

GENERAL, ADMINISTRATIVE AND OPERATING EXPENSES:

General and administrative expenses 1,077 25,437 46,142 72,656

Portfolio operating expenses 26,701 — 1,310 28,011

Loan origination costs

— 8,101 — 8,101

Financing transaction costs 6,589 — 7,584 14,173

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

The following table presents the Company's assets by reportable segment as of December 31, 2025, which in total reconciles to the same data for the Company on a consolidated basis (dollar amounts in thousands):

Investment Portfolio (1)

Constructive (2)

Corporate/Other

$ 12,140,475 $ 276,691 $ 221,681 $ 12,638,847

(1) The Company had investments in equity method investees in the amount of approximately $ 24.7 million as of December 31, 2025 ( see Note 6 ).

During the year ended December 31, 2025, the Company's expenditures for long-lived assets totaled approximately $ 8.2 million.

(2) Goodwill in the amount of approximately $ 22.4 million was allocated to Constructive during the year ended December 31, 2025 ( see Note 24 ).

Subsequent Events

On January 14, 2025, the Company completed the issuance of $ 82.5 million in aggregate principal amount of its 9.125 % Senior Notes due in 2030 (the "2030 Senior Notes") in an underwritten public offering.

On January 13, 2026, the Company completed the issuance of $ 90.0 million in aggregate principal amount of its 9.25 % Senior Notes due 2031 (the "2031 Senior Notes") in an underwritten public offering.

The total net proceeds to the Company from the offering of the 2031 Senior Notes, after deducting the underwriters' discount and commissions and offering expenses, were approximately $ 86.6 million.

On February 2, 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.

On February 16, 2026, the Company's Board of Directors approved extensions of its common stock repurchase program, under which $ 188.2 million of the approved amount remained available for repurchase, and its preferred stock repurchase program, under which $ 97.6 million of the approved amount remained available for repurchase.

11 unchanged sentences

Dallas, TX 1 25,433 5,728 34,635 1,780 5,728 36,415 42,143 ( 5,741 ) 2014 2021 5 - 30

Dallas, TX 1 26,063 5,728 34,635 1,672 5,728 36,307 42,035 ( 4,274 ) 2014 2021 5 - 30

Houston, TX 1 22,910 6,406 25,211 1,669 6,406 26,880 33,286 ( 4,626 ) 1993 2021 5 - 30

4 unchanged sentences

San Antonio, TX 1 34,834 6,827 43,240 3,065 6,827 46,305 53,132 ( 6,885 ) 2014 2021 5 - 30

St Petersburg, FL 1 56,160 9,823 74,801 4,299 9,823 79,100 88,923 ( 9,238 ) 2014 2021 5 - 30

Total Multi-Family - Operating 9 $ 276,997 $ 41,390 $ 340,479 $ 17,212 $ 41,390 $ 357,691 $ 399,081 $ ( 51,358 )

3 unchanged sentences

Houston, TX 67 10,262 3,374 15,874 2,262 3,374 18,136 21,510 ( 2,212 ) 1954 - 2019

Atlanta, GA 26 — 644 3,219 244 644 3,463 4,107 ( 125 ) 2004 - 2019

Indianapolis, IN 13 — 228 981 643 228 1,624 1,852 ( 24 ) 1913 - 1958

Monroe, GA 21 — 527 2,654 283 527 2,937 3,464 ( 205 ) 2004 - 2019

Pittsburgh, PA 12 — 509 3,172 ( 1,677 ) 322 1,682 2,004 ( 70 ) 1940 - 1991

Indianapolis, IN 7 — 208 577 908 208 1,485 1,693 ( 96 ) 1913 - 1935

Tampa, FL 6 1,115 477 1,503 259 477 1,762 2,239 ( 202 ) 1951 - 2008

2 unchanged sentences

Real Estate Held for Sale

Multi-Family - Held for Sale

St Petersburg, FL 1 $ 55,134 $ 9,823 $ 74,801 $ 4,491 $ 9,823 $ 79,292 $ 89,115 $ ( 12,183 ) 2014 2021 5 - 30

Total Multi-Family - Held for Sale

1 $ 55,134 $ 9,823 $ 74,801 $ 4,491 $ 9,823 $ 79,292 $ 89,115 $ ( 12,183 )

Single-Family Rental - Held for Sale

Indianapolis, IN 12 — 123 1,162 ( 448 ) 72 765 837 — 1910 - 1930

Atlanta, GA 7 — 162 656 ( 148 ) 133 537 670 — 2004 - 2019

Baltimore, MD 11 $ 1,377 $ 727 $ 1,984 $ ( 232 ) $ 589 $ 1,890 $ 2,479 $ — 1952 - 1983

Houston, TX 10 1,702 650 2,550 ( 699 ) 486 2,015 2,501 — 1957 - 2021

Pittsburgh, PA 6 482 218 694 24 184 752 936 — 1900 - 2004

Chicago, IL 7 1,113 413 2,057 ( 717 ) 332 1,421 1,753 — 1926 - 1995

Bedford, OH 1 89 31 124 ( 22 ) 22 111 133 — 1949

Milwaukee, WI 1 150 44 230 ( 32 ) 38 204 242 — 1970

Tampa, FL 3 611 246 827 ( 300 ) 176 597 773 — 2001 - 2010

Pittsburgh, PA 2 189 63 298 ( 62 ) 44 255 299 — 1955 - 2004

Indianapolis, IN 1 — 11 104 ( 72 ) 4 39 43 — 1920 2024 5 - 30

Total Single-Family Rental - Held for Sale

34 $ 4,992 $ 2,110 $ 7,820 $ ( 2,082 ) $ 1,631 $ 6,217 $ 7,848 $ —

Total Real Estate Held for Sale

35 $ 60,126 $ 11,933 $ 82,621 $ 2,409 $ 11,454 $ 85,509 $ 96,963 $ ( 12,183 )

Total Real Estate, Net

481 $ 395,897 $ 76,603 $ 517,564 $ 36,644 $ 75,914 $ 554,897 $ 630,811 $ ( 77,315 )

Real Estate in Disposal Group Held for Sale

Multi-Family - Disposal Group

Fort Myers, FL 1 $ 38,220 $ 7,546 $ 34,504 $ 7,129 $ 7,546 $ 41,633 $ 49,179 $ ( 1,865 ) 1973 & 1979

Tampa, FL 1 55,150 10,152 53,668 7,019 9,760 61,079 70,839 ( 7,121 ) 1971 & 1972

Total Multi-Family - Disposal Group 2 $ 93,370 $ 17,698 $ 88,172 $ 14,148 $ 17,306 $ 102,712 $ 120,018 $ ( 8,986 )

Total Real Estate 539 $ 527,192 $ 99,708 $ 651,469 $ 54,082 $ 98,840 $ 706,419 $ 805,259 $ ( 70,820 )

(1) The aggregate cost of consolidated real estate in the table above for U.S.

36 unchanged sentences

02/03/2029 - 09/06/2063 3,747 1,454

Original loan amount $200,000 - $299,999

68 2.50 % - 8.13 %

08/01/2027 - 11/01/2063 13,960 1,722

Original loan amount over $299,999

8 unchanged sentences

11/01/2049 - 11/01/2049 220 252

Original loan amount $200,000 - $299,999

1 7.75 % - 7.75 %

11/01/2049 - 11/01/2049 223 —

Business purpose loans

3 unchanged sentences

05/29/2020 - 02/01/2056 266,851 6,290

Original loan amount $200,000 - $299,999 221 6.32 % - 15.19 %

12/10/2021 - 01/01/2055 55,701 9,751

Original loan amount over $299,999 432 5.60 % - 13.00 %

8 unchanged sentences

03/01/2027 - 06/01/2064 306,296 2,829

Original loan amount $200,000 - $299,999

1,040 0.00 % - 13.00 %

08/01/2025 - 09/01/2063 183,310 7,748

Original loan amount over $299,999

8 unchanged sentences

11/01/2032 - 03/01/2050 1,227 —

Original loan amount $200,000 - $299,999

3 6.75 % - 7.75 %

03/01/2046 - 01/01/2050 469 —

Business purpose loans

3 unchanged sentences

02/01/2023 - 05/01/2064 631,684 10,350

Original loan amount $200,000 - $299,999 677 3.50 % - 13.63 %

03/01/2024 - 05/01/2064 172,912 2,913

Original loan amount over $299,999 1,436 3.49 % - 12.99 %

3 unchanged sentences

03/01/2021 - 10/01/2065 1,165,677 134,691

Residential loans held for sale

Original loan amount $0 - $99,999

81 6.25 % - 8.88 %

11/01/2055 - 01/01/2056 6,580 —

Original loan amount $100,000 - $199,999

206 5.75 % - 8.70 %

07/01/2055 - 02/01/2056 34,994 —

Original loan amount over $299,999 69 5.75 % - 9.00 %

05/01/2055 - 02/01/2056 39,133 —

$ 4,438,882 $ 253,648

(1) The aggregate cost for U.S.

10 unchanged sentences

1,568,569 2,177,949 620,277

Repurchases 4,738 — —

Accretion of purchase discount 3,980 5,539 6,689

Transfers in (2)

Gains/losses on mortgage banking activities, net

Originations of residential loans held for sale

Change in realized and unrealized gains 103,042 10,378 65,485

8 unchanged sentences

Balance at end of period $ 4,438,882 $ 3,841,738 $ 3,084,303

(1) The Company exercised its option to purchase 50 % of the issued and outstanding interests of an entity that originates residential loans during the year ended December 31, 2023.

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.

(1) 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 the entity during the year ended December 31, 2025, and $ 307.8 million and $ 80.8 million of residential loans from the entity during the years ended December 31, 2024 and 2023, respectively.

(2) Includes residential loans and residential loans held for sale consolidated by the Company following its acquisition of the outstanding membership interests in Constructive that were not previously owned by the Company .

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 9A. Controls and Procedures