9 unchanged sentences
As of December 31, 2025 and 2024, none of our loans held for investment were carried at fair value.
−Removed: We evaluate our loans on a quarterly basis and fair value is determined by our Board through its independent Audit and Valuation Committee.
+Added: We evaluate our loans on a quarterly basis and fair value is determined by our Board of Directors through its independent Audit and Valuation Committee.
We use an independent third-party valuation firm to provide input in the valuation of all of our unquoted investments, which we consider along with other various subjective and objective factors in making our evaluations.
1 unchanged sentence
Alternative valuation methodologies may be used as appropriate, and can include a market analysis, income analysis, or recovery analysis.
−Removed: To determine fair value using a yield analysis, a current price is imputed for the loan based upon an assessment of the expected market yield for a similarly structured loan with a similar level of risk.
+Added: To determine fair value using a yield analysis, a current price is imputed for the loan based
+Added: upon an assessment of the expected market yield for a similarly structured loan with a similar level of risk.
In the yield analysis, we consider the current contractual interest rate, the maturity and other terms of the loan relative to risk of the borrower and the specific loan.
24 unchanged sentences
however, this is mitigated to the extent our loans bear interest at a floating rate.
−Removed: As of December 31, 2024, we had six floating-rate loans, representing approximately 79% of our portfolio based on aggregate outstanding principal balances.
−Removed: These floating benchmark rates included one-month SOFR subject to a weighted average floor of 4.2% and quoted at 4.3%.
−Removed: We estimate that a hypothetical 100 basis points increase in the floating benchmark rate would result in an increase in annual interest income of approximately $1.0 million and a hypothetical 100 basis points decrease in the floating benchmark rate would result in a decrease in annual interest income of approximately $(0.1) million.
+Added: As of December 31, 2025, we had 15 floating-rate loans, representing approximately 96% of our portfolio based on aggregate outstanding principal balances.
+Added: These floating benchmark rates included one-month SOFR quoted at 3.7% and subject to a weighted average floor of 4.1%, and U.S.
+Added: prime rate quoted at 6.75% and subject to a weighted average floor of 8.0% based on outstanding principal.
+Added: We estimate that a hypothetical 100 basis points increase in the floating benchmark rate would result in an increase in annual interest income of approximately $2.9 million and a hypothetical 100 basis points decrease in the floating benchmark rate would result in a decrease in annual interest income of approximately $1.1 million due to the effects of the benchmark floor.
Interest Rate Cap Risk
5 unchanged sentences
This could result in our receipt of cash income from such assets in an amount that is less than the amount that we would need to pay the interest cost on our related borrowings.
−Removed: These factors could lower our net interest income or cause a net loss during periods of rising interest rates, which would harm our financial condition, cash flows and results of operations.
+Added: These factors could lower our net
+Added: interest income or cause a net loss during periods of rising interest rates, which would harm our financial condition, cash flows and results of operations.
In terest Rate Mismatch Risk
5 unchanged sentences
These analyses rely on models which utilize estimates of fair value and interest rate sensitivity.
−Removed: Actual economic conditions or implementation of
−Removed: decisions by our Manager and our management may produce results that differ significantly from the estimates and assumptions used in our models and the projected results.
+Added: Actual economic conditions or implementation of decisions by our Manager and our management may produce results that differ significantly from the estimates and assumptions used in our models and the projected results.
We are subject to varying degrees of credit risk in connection with our loans and interest receivable.
22 unchanged sentences
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.