2 unchanged sentences
We intend for our investment mix to include high quality residential, including multi-family, condominiums and single-family residential communities, retail, office, hospitality, industrial, mixed-use and specialty-use real estate.
+Added: Our investments are primarily commercial real estate loans, but may also include, from time to time, equity interest in unconsolidated joint ventures holding real estate acquired through foreclosure or other remedies.
We believe that our Manager’s rigorous investment process on our behalf will enable us to make investments with potential for value creation as we seek to provide capital to strong sponsors with readily executable business plans while endeavoring to implement significant downside protections.
4 unchanged sentences
We may carry our loans at fair value or carrying value in our balance sheets.
−Removed: As of March 31, 2026 and December 31, 2025, none of our loans held for investment were carried at fair value.
+Added: As of June 30, 2026 and December 31, 2025, none of our loans held for investment were carried at fair value.
+Added: As of June 30, 2026 , our assets also included an equity-method investment in an unconsolidated real estate joint venture holding hotel real estate acquired through foreclosure, the value of which is subject to risks different from those applicable to our loan portfolio, including risks relating to hotel operating performance, capital expenditures, real estate values, financing conditions and the timing and terms of any sale or refinancing.
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.
−Removed: We use an independent third-party valuation firm to provide input in the valuation of all
−Removed: of our unquoted investments, which we consider along with other various subjective and objective factors in making our evaluations.
+Added: 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.
Our loans are typically valued using a yield analysis, which is typically performed for non-credit impaired loans to borrowers.
27 unchanged sentences
however, this is mitigated to the extent our loans bear interest at a floating rate.
−Removed: As of March 31, 2026, we had 15 floating-rate loans, representing approximately 96% of our portfolio based on aggregate outstanding principal balances.
+Added: As of June 30, 2026, we had 13 floating-rate loans, representing approximately 96% of our portfolio based on aggregate outstanding principal balances.
These floating benchmark rates included one-month SOFR quoted at 3.7% and subject to a weighted average floor of 3.9%, and U.S.
1 unchanged sentence
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 $0.7 million due to the effects of the benchmark floor.
+Added: Our investment in the unconsolidated real estate joint venture is not reflected in this interest income sensitivity analysis, although changes in market interest rates may indirectly affect the value and performance of that investment by influencing hotel operating performance, capitalization rates, financing availability and the terms of any sale or refinancing involving the underlying property.
Interest Rate Cap Risk
1 unchanged sentence
These are assets in which the loans may be subject to periodic and lifetime interest rate caps and floors, which limit the amount by which the asset’s interest yield may change during any given period.
−Removed: However, our future borrowing costs pursuant to our potential financing agreements may not be subject to similar
−Removed: restrictions.
+Added: However, our future borrowing costs pursuant to our potential financing agreements may not be subject to similar restrictions.
Therefore, in a period of increasing interest rates, interest rate costs on our borrowings could increase without limitation by caps, while the interest-rate yields on our floating-rate assets would effectively be limited.
11 unchanged sentences
We are subject to varying degrees of credit risk in connection with our loans and interest receivable.
−Removed: Our Manager seeks to mitigate this risk by seeking to originate loans, and may in the future acquire loans, of higher quality at appropriate prices given anticipated and unanticipated losses, by employing a comprehensive review and selection process and by proactively monitoring originated and acquired loans.
+Added: Our Manager seeks to mitigate this risk by seeking to originate loans, and may in the future acquire loans, of higher quality at appropriate prices given anticipated and unanticipated losses, by employing a comprehensive review and selection process and by proactively
+Added: monitoring originated and acquired loans.
Nevertheless, unanticipated credit losses could occur that could adversely impact our operating results.
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As a result, we cannot predict the percentage of our capital that will be invested in any individual target investment at any given time.
−Removed: Our loan portfolio as of March 31, 2026 was concentrated with the top three borrowers representing approximately 43.8% of the aggregate outstanding principal balances and approximately 35.3% of the total loan commitments.
+Added: Our loan portfolio as of June 30, 2026 was concentrated with the top three borrowers representing approximately 43.9% of the aggregate outstanding principal balances and approximately 36.9% of the total loan commitments.
We made our first investment in January 2024 and expect to continue to diversify our loan portfolio as loans in our pipeline are evaluated and are originated through the deployment of our capital.
8 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.