Investment Securities - For the three months ended September 30, 2025, total investment securities increased to $10,511.648 million, up from $8,603.269 million[304]. - The company reported a total of $6,869.358 million in investment securities available for sale and TBAs as of September 30, 2025[304]. - The fair value of consolidated SLST investment securities owned by the company was $158.791 million as of September 30, 2025, down from $160.930 million[305]. - As of September 30, 2025, total investments amounted to $10,518,504, an increase from $7,392,338 as of December 31, 2024, representing a growth of approximately 42.8%[337][338]. - The company had $6.1 billion outstanding under repurchase agreements as of September 30, 2025, with a weighted average interest rate of 4.43%[404][405]. - The total unrealized gains on investment securities were $111.4 million as of September 30, 2025, compared to $23.9 million as of December 31, 2024[401]. - The carrying value of Agency RMBS and TBAs increased to $8.01 billion as of September 30, 2025, compared to $4.24 billion as of December 31, 2024, indicating significant growth in this segment[400][401]. Financial Performance - Net income attributable to common stockholders for Q3 2025 was $32.7 million, or $0.36 per share, with Earnings Available for Distribution (EAD) increasing 9% quarter-over-quarter to $0.24 per share, marking a 140% year-over-year improvement[311]. - The company achieved the highest level of quarterly investment activity in its history during Q3 2025, reflecting a strategic focus on enhancing recurring income and portfolio liquidity[310]. - The economic return on book value for Q3 2025 was 3.51%, while the economic return on adjusted book value was 3.41%[333]. - The Company reported a net income attributable to common stockholders of $32,702 for the three months ended September 30, 2025, slightly up from $32,410 in 2024, while for the nine months, it decreased to $59,501 from $121,458, a decline of 51.0%[342]. - The Company’s total other income (loss) for the three months ended September 30, 2025, was $48,604, down 8.1% from $52,875 in 2024, while for the nine months, it improved to $71,292 from $(10,527), a significant positive change[342]. Dividends and Stock Repurchases - The company declared a quarterly dividend of $0.23 per share, a 15% increase from the prior quarter, equating to a 13.2% annualized dividend yield as of September 30, 2025[311]. - Common stock repurchases amounted to $1,502,000 for the nine months ended September 30, 2025, with a total of 231,000 shares repurchased[366]. - The Company approved a $100.0 million preferred stock repurchase program, with $97.6 million remaining available as of September 30, 2025[486]. - The common stock repurchase program was increased to $246.0 million, with $188.2 million remaining available as of September 30, 2025[487]. Loan and Mortgage Activity - The company acquired approximately $1.8 billion of Agency investments with an average coupon of 5.27% and approximately $525.7 million in residential loans with an average gross coupon of 8.81% during Q3 2025[333]. - The total value of acquired and originated residential loans as of September 30, 2025, was $4,256,683 thousand, an increase of 10.8% from $3,841,738 thousand as of December 31, 2024[412]. - The business purpose rental loan strategy accounted for 39.5% of the total unpaid principal of acquired and originated residential loans as of September 30, 2025, with an average FICO score of 747 and an average loan-to-value (LTV) ratio of 70%[414]. - The company recognized net unrealized losses of $50.0 thousand and $132.6 thousand for the three and nine months ended September 30, 2025, respectively, on its non-Agency RMBS re-securitization[410]. Risks and Market Conditions - The company faces various risks including changes in interest rates, credit spreads, and the ability to maintain REIT qualification, which could impact future performance[300]. - The Federal Reserve cut the target range for the federal funds rate by 25 basis points in September and another 25 basis points in October 2025, marking the lowest level since 2022[324]. - The U.S. unemployment rate trended up to 4.3% by the end of August 2025, indicating a cooling labor market[322]. - Effective rents for professionally managed apartments fell 0.3% in Q3 2025, indicating a potential decline in rental housing fundamentals[326]. Capital Structure and Financing - The Company Recourse Leverage Ratio and Portfolio Recourse Leverage Ratio increased to 5.0x and 4.7x, respectively, from 3.8x and 3.6x as of June 30, 2025[314]. - The company had repurchase agreements and warehouse facilities totaling $3,225,000,000 as of September 30, 2025, with a weighted average interest rate of 6.37%[422]. - The company incurred loan origination costs of $3.8 million for both the three and nine months ended September 30, 2025[361]. - The company plans to maintain a solid position in unrestricted cash while pursuing investments in less price-sensitive assets like Agency RMBS[461]. Operational Costs - General and administrative expenses for the three months ended September 30, 2025, were $23,349, up 95.4% from $11,941 in 2024, indicating increased operational costs[342]. - Total expenses related to real estate decreased by $16.4 million to $22.98 million for the three months ended September 30, 2025, from $39.4 million in 2024[344]. - Total financing transaction costs for the three months ended September 30, 2025, were $7.9 million, an increase of $5.6 million compared to $2.4 million in 2024[362]. Strategic Acquisitions - The company completed the acquisition of the outstanding membership interests in Constructive, consolidating it into the financial statements, which included residential loans and mortgage servicing rights[304]. - The acquisition of Constructive was completed on July 15, 2025, resulting in full ownership and a reported $14.1 million in mortgage banking income from origination and sale activity for the quarter[313]. - The company executed a strategic repositioning by disposing of certain joint venture equity investments and acquiring assets to expand interest income levels, including Agency RMBS and business purpose loans[382].

Financial Performance - Net income attributable to common stockholders for Q3 2025 was $32,702,000, with earnings per share of $0.36[3]. - The net income attributable to the Company's common stockholders for the three months ended September 30, 2025, was $32,702,000, while for the nine months it was $59,501,000[13]. - The company reported a net income attributable to common stockholders of $32,702 thousand for the three months ended September 30, 2025, compared to $32,410 thousand for the same period in 2024, reflecting a slight increase of 0.9%[26]. - Net income attributable to the Company was $44,820,000 for the quarter, up from $8,546,000 in the previous quarter[28]. - GAAP net income attributable to common stockholders for the three months ended September 30, 2025, was $32,702 thousand, compared to a loss of $(3,486) thousand for the previous quarter[42]. Interest Income and Expenses - Interest income for the quarter reached $160,633,000, while interest expense was $124,047,000, resulting in net interest income of $36,586,000[3]. - Interest income rose to $160,633 thousand for the three months ended September 30, 2025, up 48.3% from $108,361 thousand in the prior year[26]. - Interest income for the three months ended September 30, 2025, was $160,633,000, an increase from $140,901,000 in the previous quarter[28]. - The yield on average interest earning assets was 6.33%, with a net interest spread of 1.50%[3][10]. - The yield on average interest-earning assets was 6.33%, down from 6.48% in the previous quarter[28]. - Total net interest income for the same period was $36,586,000, compared to $36,447,000 in the prior quarter, reflecting a slight increase[28]. - Adjusted net interest income for the quarter was $42,752,000, compared to $36,586,000 in the previous quarter[34]. - For the three months ended September 30, 2025, the total net interest income was $36,586,000, with a net loss from real estate of $(3,878,000)[13]. Dividends and Shareholder Returns - The quarterly dividend was increased to $0.23 per common share, marking a significant increase in shareholder returns[6]. - Dividends declared per common share were $0.23, up from $0.20 in the previous quarter[28]. - Preferred stock dividends increased to $12,118 thousand for the three months ended September 30, 2025, compared to $10,439 thousand in the same period of 2024, reflecting a rise of 16.1%[26]. Assets and Liabilities - Total assets increased to $12,401,862 thousand as of September 30, 2025, up from $9,217,282 thousand as of December 31, 2024, representing a growth of 34.5%[24]. - Total liabilities increased to $10,997,084 thousand as of September 30, 2025, compared to $7,806,148 thousand as of December 31, 2024, marking a rise of 40.5%[24]. - Total investments as of September 30, 2025, amounted to $10,518,504,000, with liabilities of $6,511,835,000[8]. - Total liabilities as of September 30, 2025, were $373,388 thousand, including mortgages payable on real estate of $362,747 thousand[52]. Operational Insights - The company focuses on generating durable earnings and long-term value through disciplined portfolio management[16]. - The company is internally managed and strategically deploys capital across complementary businesses[16]. - The company executed a strategic repositioning by disposing of certain joint venture equity investments and acquiring assets to expand interest income levels, such as Agency RMBS and business purpose loans[38]. - The company recorded cumulative depreciation expense on real estate of $26,357 thousand as of September 30, 2025[48]. - The company has joint venture equity investments in multi-family properties, which are consolidated in the financial statements[49]. Conference Call and Future Outlook - The Company will host a conference call on October 30, 2025, to discuss financial results and provide further insights[14]. - A supplemental financial presentation will accompany the conference call, available on the Company's website[15]. - Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from projections[19]. Earnings Available for Distribution (EAD) - Earnings Available for Distribution (EAD) is now presented as a supplemental non-GAAP financial measure, replacing the previously used undepreciated earnings measure[37]. - EAD provides a clearer indication of the current income-generating capacity of the company's business operations compared to the previous undepreciated earnings measure[38]. - EAD is defined as GAAP net income excluding various non-recurring and non-cash items, providing additional transparency into operating performance[39]. - The Board of Directors considers EAD among other factors when determining dividends on common stock, but it should not be viewed as a guarantee of dividend payments[41]. - The company emphasizes that EAD should not be considered a substitute for GAAP net income or as an indication of REIT taxable income[40]. - Earnings available for distribution (EAD) attributable to common stockholders was $21,991 thousand for the three months ended September 30, 2025, an increase from $20,024 thousand in the previous quarter[42].

Investment Portfolio - As of June 30, 2025, the total investment portfolio amounted to $8,603,269,000, reflecting an increase of $338,604,000 from the previous quarter[271] - The company acquired $914,732,000 in new investments during the quarter, while repayments totaled $558,534,000[271] - The total investment securities available for sale and TBAs reached $5,119,765,000, reflecting a net increase of $472,953,000[271] - As of June 30, 2025, the company acquired approximately $4.1 billion of assets during the year ending December 31, 2024, and an additional $2.8 billion in the first half of 2025, resulting in a 55% increase in interest income and a 58% increase in adjusted interest income for Q2 2025 compared to Q2 2024[277] - The company’s investment securities portfolio increased to $6.88 billion as of June 30, 2025, compared to $5.28 billion as of December 31, 2024[381] Financial Performance - The company generated net income attributable to common stockholders of $0.30 per share and earnings available for distribution of $0.42 per share for the first half of 2025, indicating continued portfolio growth and income generation[277] - For the three months ended June 30, 2025, the net loss attributable to the company's common stockholders was $3.486 million, resulting in a loss per share of $0.04[301] - For the six months ended June 30, 2025, the net income attributable to the company's common stockholders was $26.799 million, with earnings per share of $0.30[301] - Interest income for the three months ended June 30, 2025, was $140.901 million, while interest expense was $104.454 million, leading to a net interest income of $36.447 million[301] - The company reported a net income attributable to the company of $8,546 in Q2 2025, compared to a net loss of $15,589 in Q2 2024, and for the first half of 2025, it was $50,701, up from a loss of $73,489 in the same period of 2024[313] Strategic Repositioning - The company is repositioning its business by opportunistically disposing of joint venture equity investments in multi-family properties[271] - The company aims to reallocate capital away from multi-family properties to targeted assets, indicating a strategic shift in investment focus[271] - The company continues to execute its strategic repositioning, reducing exposure to multi-family investments to $17.4 million as of June 30, 2025, with plans to wind down this portfolio over time[279] - The company executed a strategic repositioning by disposing of certain joint venture equity investments and acquiring assets that expand interest income levels, such as Agency RMBS and business purpose loans[346] Leverage and Capital Management - As of June 30, 2025, the company's Recourse Leverage Ratio and Portfolio Recourse Leverage Ratio increased to 3.8x and 3.6x, respectively, from 3.0x and 2.9x as of December 31, 2024, primarily due to financing of Agency RMBS[281] - The company anticipates a gradual increase in leverage as it scales its investment portfolio while remaining committed to prudent liability management[281] - The company reported a Company Recourse Leverage Ratio of 3.8x as of June 30, 2025, compared to 3.0x at the end of 2024, indicating increased leverage[308][309] Economic Environment - The U.S. economy grew at an annualized rate of 3.0% in Q2 2025, compared to a 0.5% decrease in Q1 2025, while inflation remains persistently above the Federal Reserve's target of 2%[287] - The U.S. unemployment rate was 4.1% at the end of June 2025, down from 4.2% at the end of March 2025, with average hourly earnings rising 3.7% year-over-year[288] - The probability of a recession in the next twelve months was reported at 33% in July 2025, down from 45% in April 2025, reflecting improved GDP forecasts despite ongoing trade uncertainties[290] Interest Income and Expense - Interest income for Q2 2025 was $140,901, a 55.3% increase from $90,775 in Q2 2024, and for the first half of 2025, it was $270,636, up 55% from $174,666 in the same period of 2024[313] - Net interest income for Q2 2025 was $36,447, a 91.5% increase from $19,044 in Q2 2024, and for the first half of 2025, it was $69,545, up 88.2% from $36,907 in the same period of 2024[313] - Adjusted interest income increased by approximately $48.4 million and $93.1 million for the three- and six-month periods, respectively, driven by increased investment in Agency RMBS and residential loans[341] - Adjusted interest expense rose by approximately $35.7 million and $70.3 million for the three- and six-month periods, primarily due to increased financing through repurchase agreements and securitizations[342] Stockholder Equity and Dividends - The company reported a weighted average loan-to-value (LTV) ratio of 83.2% for its multi-family properties not in the disposal group held for sale[406] - Dividends declared for the three months ended June 30, 2025, amounted to $18,629,000, translating to a per share dividend of $0.20[331] - The company’s stockholders' equity was $1,381,203 thousand, a decrease from $1,394,720 thousand as of December 31, 2024[426] Risk Management - The company actively manages risks related to interest rates, liquidity, prepayments, credit quality, and market value to generate risk-adjusted total returns[461] - Changes in interest rates significantly affect the company's net interest income and adjusted net interest income[463]

Financial Performance - Net loss attributable to common stockholders for Q2 2025 was $3.486 million, resulting in a loss per share of $0.04[3] - Earnings available for distribution were $20.024 million, translating to $0.22 per common share[3] - The company reported an economic return on adjusted book value of 0.29% for the quarter[3] - Net income attributable to the company for the six months ended June 30, 2025, was $50,701,000, compared to a loss of $(73,489,000) for the same period in 2024[26] - Basic loss per common share for the three months ended June 30, 2025, was $(0.04), compared to $(0.29) for the same period in 2024[28] - Total net loss from real estate for the three months ended June 30, 2025, was $(3,014,000), compared to a loss of $(13,106,000) for the same period in 2024, indicating a significant improvement[26] Interest Income and Expenses - Interest income for the quarter was $140.901 million, while interest expense totaled $104.454 million, leading to a net interest income of $36.447 million[3] - Net interest income for the three months ended June 30, 2025, was $36,447,000, a 91.7% increase from $19,044,000 for the same period in 2024[26] - Interest income for the three months ended June 30, 2025, was $140,901,000, up from $90,775,000 for the same period in 2024, reflecting a strong growth in interest earnings[28] - The yield on average interest-earning assets for the three months ended June 30, 2025, was 6.48%, slightly up from 6.46% for the same period in 2024[28] - The yield on average interest earning assets was 6.48%, with a net interest spread of 1.50%[3][10] Asset and Liability Management - Total assets increased to $10,552,332 thousand as of June 30, 2025, up from $9,217,282 thousand as of December 31, 2024, representing a growth of approximately 14.5%[24] - Total liabilities grew to $9,155,677 thousand as of June 30, 2025, compared to $7,806,148 thousand at the end of 2024, marking an increase of around 17.3%[24] - The company's accumulated deficit stood at $(1,441,088) thousand as of June 30, 2025, compared to $(1,430,675) thousand at the end of 2024, showing a slight increase in the deficit[24] - The company's total equity of $1,383,873 thousand as of June 30, 2025, down from $1,398,775 thousand, indicating a decrease of approximately 1.1%[24] - The liabilities of consolidated variable interest entities (VIEs) totaled $3,859,442 thousand as of June 30, 2025, compared to $3,477,211 thousand at the end of 2024, representing an increase of about 11%[24] Investment Activities - The company acquired approximately $503.7 million in Agency investments and $280.2 million in residential loans during the quarter[5] - The acquisition of Constructive Loans, LLC for approximately $38.4 million is expected to enhance the company's position in residential business purpose lending[6][7] - The total investment portfolio carrying value as of June 30, 2025, was $8.609 billion[8] - Residential loans at fair value rose to $4,026,027 thousand, compared to $3,841,738 thousand, indicating an increase of about 4.8%[24] - Investment securities available for sale at fair value increased to $5,109,601 thousand from $3,828,544 thousand, reflecting a growth of approximately 33.4%[24] Shareholder Returns and Dividends - Dividends declared per common share remained consistent at $0.20 for the three months ended June 30, 2025, unchanged from the previous quarters[28] - The company's preferred stock had an aggregate liquidation preference of $558,498 thousand as of June 30, 2025, slightly up from $554,110 thousand at the end of 2024[24] Non-GAAP Financial Measures - The company has transitioned to presenting earnings available for distribution (EAD) as a non-GAAP financial measure starting from March 31, 2025[37] - EAD is defined as GAAP net income excluding various non-recurring and non-cash items, providing a clearer indication of the company's income-generating capacity[39] - EAD serves as a useful indicator for evaluating performance and facilitating comparisons to industry peers[40] - Earnings available for distribution (EAD) attributable to common stockholders for the same period was $20,024 thousand, up from $18,194 thousand in the previous quarter, reflecting a 10% increase[42] Other Financial Metrics - Total general, administrative, and operating expenses for the three months ended June 30, 2025, were $19,890,000, a decrease from $23,599,000 for the same period in 2024[28] - Total other (loss) income for the three months ended June 30, 2025, was $(9,264,000), compared to $(6,080,000) for the same period in 2024, indicating increased volatility in other income sources[28] - The adjusted book value per common share as of June 30, 2025, was $10.26, down from $10.43 as of March 31, 2025[28] - The company recorded unrealized gains on equity investments of $(24,614) thousand for the three months ended June 30, 2025[42] - The company’s redeemable non-controlling interest in consolidated VIEs was $12,782 thousand, with a cumulative adjustment to estimated redemption value of $(49,574) thousand[52]

Financial Performance - Net income attributable to common stockholders was $0.33 per share for the first quarter of 2025[247]. - Earnings available for distribution was $0.20 per share for the first quarter of 2025, indicating continued momentum in portfolio growth and income generation[247]. - Net income attributable to the Company's common stockholders for Q1 2025 was $30,285,000, with a basic earnings per share of $0.33[269]. - Net income attributable to the company for the three months ended March 31, 2025, was $42.155 million, a significant improvement from a net loss of $57.901 million in 2024[282]. - Basic earnings per common share improved to $0.33 in 2025 from a loss of $0.75 in 2024, an increase of $1.08[282]. - GAAP net income attributable to common stockholders for Q1 2025 was $30,285, compared to a loss of $68,340 in Q1 2024[322]. - Earnings available for distribution (EAD) attributable to common stockholders increased to $18,194 in Q1 2025 from $2,117 in Q1 2024[322]. Investment Portfolio - The total investment portfolio reached $8.26 billion as of March 31, 2025, after accounting for acquisitions and repayments[242]. - The company’s residential loans at fair value increased to $2.95 billion as of March 31, 2025, from $2.88 billion at the end of 2024[242]. - Agency RMBS holdings grew to $4.56 billion as of March 31, 2025, up from $3.14 billion at the end of 2024[242]. - The company purchased approximately $1.5 billion of Agency RMBS with an average coupon of 5.35% during Q1 2025[272]. - The total investment portfolio carrying value as of March 31, 2025, was $8,270,581,000[276]. - The investment securities portfolio's fair value increased to $4.794 billion as of March 31, 2025, from $3.977 billion on December 31, 2024, marking an increase of approximately 20.5%[350]. - The total fair value of residential loan securitizations increased to $1.554 billion as of March 31, 2025, compared to $1.253 billion on December 31, 2024, representing a growth of approximately 24%[348]. Debt and Financing - The company issued $82.5 million of 9.125% Senior Notes due 2030, receiving $79.3 million in net proceeds primarily used to purchase Agency RMBS[250]. - The company had $100.0 million in 5.75% Senior Notes due 2026, with a total cost of approximately 6.64%[390]. - The Company had commitments to fund up to $184.8 million of additional advances on existing business purpose loans as of March 31, 2025[424]. - The common stock repurchase program had $189.7 million remaining available as of March 31, 2025, and it also expires on March 31, 2026[419]. - The company reported redeemable non-controlling interests of approximately $13.4 million as of March 31, 2025, related to its joint venture equity investments[373]. Economic Environment - The U.S. GDP contracted by 0.3% in the first quarter of 2025, marking the first quarter of contraction since Q1 2022, compared to a 2.4% growth in Q4 2024[255]. - The unemployment rate in the U.S. was 4.2% at the end of March 2025, slightly up from 4.1% at the end of December 2024, with 7.1 million unemployed persons[256]. - Effective rents for professionally managed apartments grew 1.1% for the twelve months ended March 2025, but there were significant regional disparities[260]. - Investment grade credit spreads widened by 15 basis points and high-yield spreads by 63 basis points during the first quarter of 2025[261]. Asset Management and Strategy - The company is repositioning its business by opportunistically disposing of joint venture equity investments in multi-family properties[243]. - The company expects to continue opportunistically disposing of assets from its multi-family portfolio while focusing on investments in the residential housing sector[251]. - The company has maintained its qualification as a REIT, which allows it to avoid federal income tax on distributed taxable income[245]. - The company actively manages its portfolio and continuously adjusts the size and composition of its asset and derivative hedge portfolios[433]. Interest Income and Expenses - Interest income increased by 55% and adjusted interest income increased by more than 57% for the first quarter of 2025 compared to the same period in 2024[247]. - Interest income for the same period was $129,734,000, while interest expense was $96,636,000, resulting in a net interest income of $33,098,000[269]. - The yield on average interest-earning assets was reported at 6.47%[269]. - Interest expense increased to $96.636 million in 2025 from $66.029 million in 2024, an increase of 46.5%[282]. - Adjusted interest expense for Q1 2025 was $86,560, up from $51,896 in Q1 2024, marking an increase of approximately $34.7 million[310][314]. Real Estate and Loans - The company’s weighted average loan-to-value (LTV) ratio for business purpose rental loans was 73% as of March 31, 2025[337]. - The delinquency status shows that 91.3% of loans were current as of March 31, 2025, a slight increase from 91.2% at the end of 2024[342]. - The weighted average credit score at purchase for the underlying loans was 765 as of March 31, 2025, compared to 767 at the end of 2024[342]. - The company had a net investment in Consolidated SLST of $149.4 million as of March 31, 2025, slightly down from $149.8 million at the end of 2024[347]. Cash Flow - The Company generated net cash flows from operating activities totaling $25.8 million during the three months ended March 31, 2025[401]. - Net cash flows used in investing activities were $794.2 million, primarily due to purchases of investment securities and residential loans[402]. - Net cash flows provided by financing activities were $713.8 million, mainly from proceeds received from repurchase agreements and the issuance of CDOs and senior unsecured notes[405]. Risk Management - Changes in interest rates could significantly impact adjusted net interest income, with a +200 basis points change resulting in a decrease of $90,470 thousand[433]. - The company utilizes interest rate caps and swaps to manage interest rate risk in its portfolio[431]. - The company may be required to enter into interest rate cap contracts for variable-rate mortgages payable in its Consolidated Real Estate VIEs[416].

Financial Performance - Net income attributable to common stockholders for Q1 2025 was $30,285,000, with earnings per share of $0.33[3] - Net income attributable to the company's common stockholders for Q1 2025 was $30,285 thousand, compared to a net loss of $68,340 thousand in Q1 2024, indicating a significant turnaround[28] - Basic earnings per common share for Q1 2025 was $0.33, compared to a loss of $(0.75) per share in Q1 2024[28] - GAAP net income attributable to common stockholders for Q1 2025 was $30.285 million, compared to a loss of $41.828 million in Q4 2024[44] - Earnings available for distribution (EAD) attributable to common stockholders for Q1 2025 was $18.194 million, up from $14.178 million in Q4 2024[44] Interest Income and Expenses - Interest income for the quarter was $129,734,000, while interest expense totaled $96,636,000, resulting in net interest income of $33,098,000[3] - Interest income rose to $129,734 thousand in Q1 2025, up from $83,892 thousand in Q1 2024, marking an increase of 54.7%[28] - Total net interest income rose to $33.098 million, compared to $26.711 million in the prior quarter, reflecting a 24.5% increase[30] - The yield on average interest earning assets was 6.47%, with a net interest spread of 1.32%[3] - The yield on average interest-earning assets was 6.47%, slightly down from 6.57% in the previous quarter[30] - The net interest spread was 1.32%, consistent with the previous quarter's spread of 1.37%[30] Investment Activities - The company purchased approximately $1.5 billion of Agency RMBS with an average coupon of 5.35% and $396.8 million in residential loans with an average gross coupon of 9.33%[5] - Two securitizations of residential loans generated approximately $326.3 million in net proceeds after expenses[8] - Total investment portfolio carrying value was $8,270,581,000 as of March 31, 2025[11] Assets and Liabilities - Total assets increased to $10,004,055 thousand as of March 31, 2025, up from $9,217,282 thousand as of December 31, 2024, representing an increase of approximately 8.5%[26] - Total liabilities increased to $8,585,743 thousand as of March 31, 2025, from $7,806,148 thousand as of December 31, 2024, an increase of approximately 9.9%[26] - The company's equity investments at fair value decreased to $93,999 thousand as of March 31, 2025, down from $113,492 thousand as of December 31, 2024, a decline of 17.2%[26] Shareholder Actions - The company repurchased 231,200 shares of common stock for a total cost of approximately $1.5 million, averaging $6.50 per share[7] - The company completed the issuance of $82.5 million in Senior Notes due 2030, with net proceeds of approximately $79.3 million[8] Operational Metrics - The adjusted book value per common share at the end of the period was $10.43, with an economic return on adjusted book value of 2.71%[3] - Adjusted book value per common share as of March 31, 2025, was $10.43, compared to $10.35 as of December 31, 2024[50] - The company’s total general, administrative, and operating expenses were $25,102 thousand for Q1 2025, slightly up from $24,341 thousand in Q1 2024[28] Changes in Accounting Measures - The company has transitioned to presenting earnings available for distribution (EAD) starting from Q1 2025, replacing the previously used undepreciated earnings measure[39] - EAD is defined as GAAP net income excluding various non-recurring and non-cash items, providing a clearer indication of the company's income-generating capacity[41] - The Board of Directors considers EAD among other factors when determining dividend distributions, but it does not guarantee dividend payments[43] Real Estate Performance - The company reported a total net loss from real estate of $(2,235) thousand for Q1 2025, an improvement from a loss of $(16,369) thousand in Q1 2024[28] - The company recorded realized losses of $41.1 million in Q1 2025, compared to $9.947 million in Q4 2024[44] - Unrealized gains for Q1 2025 were $(118.203) million, a significant change from the $131.576 million in Q4 2024[44] Business Repositioning - The strategic repositioning included the acquisition of Agency RMBS and business purpose loans, aimed at expanding interest income levels[40] - The company is repositioning its business by opportunistically disposing of joint venture equity investments in multi-family properties[52] - As of March 31, 2025, the company has classified certain joint venture equity investments as held for sale[52]

Real Estate Investments - As of December 31, 2024, the company owned 526 single-family rental properties, primarily located in Illinois and Maryland [30]. - The company has reduced exposure in its disposal group of multi-family investments to $19.5 million over two multi-family properties, generating net gains of approximately $16.0 million from the disposal of 15 multi-family properties [41]. - The company anticipates allocating less capital to multi-family investments going forward, focusing on preferred equity investments and mezzanine loans [32]. - The company owned approximately $139.4 million of preferred equity interests in a joint venture that owns 10 multi-family properties as of December 31, 2024 [40]. - The company has a 50% equity interest in an entity that originates residential loans as of December 31, 2024 [44]. - The company may consolidate certain multi-family joint venture equity investments and preferred equity investments into its consolidated financial statements in accordance with GAAP [52]. - As of December 31, 2024, the company's total equity ownership interest in multi-family properties was $1,394.72 million, a decrease from $1,579.61 million in 2023, reflecting an accumulated deficit of $1,430.68 million [443]. Financial Performance - As of December 31, 2024, the company had approximately $9.2 billion in total assets, an increase from approximately $7.4 billion as of December 31, 2023 [384]. - The company generated net cash flows from operating activities of $14.1 million during the year ended December 31, 2024 [450]. - The net cash flows used in investing activities amounted to $2.2 billion, primarily due to purchases of investment securities and residential loans [451]. - As of December 31, 2024, the company reported net cash flows from financing activities of $2.2 billion, primarily from repurchase agreements and issuance of CDOs [454]. Leverage and Debt - The company's maximum leverage ratios are 15:1 for more liquid Agency securities, between 4:1 and 6:1 for more illiquid assets, and 8:1 for residential loans, with a target total debt leverage ratio not greater than 4:1 [46]. - As of December 31, 2024, the company's recourse leverage ratio was approximately 3.0 to 1, and the portfolio recourse leverage ratio was approximately 2.9 to 1 [48]. - The company employs leverage through repurchase agreements, with terms ranging from 30 days to 24 months, linked to the Secured Overnight Funding Rate (SOFR) [49]. - The company’s recourse leverage ratio was approximately 3.0 to 1 as of December 31, 2024, indicating the level of debt relative to stockholders' equity [463]. - Total contractual obligations amount to $4,329,259,000, including projected interest payments [477]. - Repurchase agreements account for $4,049,232,000 of the total obligations [477]. Investment Securities - The investment securities portfolio increased in carrying value as of December 31, 2024, primarily due to purchases of Agency RMBS, non-Agency RMBS, and U.S. Treasury securities [402]. - As of December 31, 2024, the total investment securities amounted to $5,669,393,000, with an amortized cost of $4,083,247,000, resulting in unrealized losses of $130,099,000 [403]. - The total fair value of Agency RMBS as of December 31, 2024, was $3,136,812,000, with a weighted average yield of 5.88% [403]. - The total fair value of non-Agency RMBS was $69,687,000, with a weighted average yield of 14.02% [403]. - The total fair value of U.S. Treasury securities was $622,045,000, with a weighted average yield of 4.13% [403]. Employee and Diversity Metrics - As of December 31, 2024, the company had 70 full-time employees across its offices in New York, Charlotte, and Woodland Hills [62]. - Women comprised 29% of the total workforce, while 33% of employees self-identified as ethnically diverse as of December 31, 2024 [63]. Risk Management - The company utilizes interest rate swaps to hedge variable cash flows associated with its variable-rate borrowings [56]. - The company may utilize model-based risk analysis to project asset price and cash flow sensitivities over various interest rates and market scenarios [59]. - The company believes that existing statutes and regulations have not had a material adverse effect on its business [66]. Shareholder Returns and Dividends - The company is committed to distributing at least 90% of its ordinary taxable income each year to qualify as a REIT under the Internal Revenue Code [68]. - The company’s dividend policy will be evaluated quarterly, with adjustments based on earnings, financial condition, and other relevant factors [471]. - During the year ended December 31, 2024, the company repurchased 587,347 shares of common stock for approximately $3.5 million, averaging $5.95 per share [469]. - The company did not repurchase any shares of preferred stock during the year ended December 31, 2024, leaving $97.6 million available under the preferred stock repurchase program [468]. Mezzanine Lending - The company’s mezzanine lending strategy may include preferred equity and mezzanine loans secured by multi-family real estate assets [412]. - As of December 31, 2024, the total fair value of the Mezzanine Lending portfolio is $176.6 million, down from $211.7 million as of December 31, 2023, representing a decrease of approximately 16.6% [417]. - The weighted average preferred return rate for the Mezzanine Lending portfolio increased to 12.9% as of December 31, 2024, compared to 12.5% as of December 31, 2023 [420]. - The Company recorded a defaulted preferred equity investment, which represents 1.8% of the total investment amount of the Mezzanine Lending portfolio, reducing its fair value to zero [415].

Financial Performance - Net loss attributable to common stockholders for Q4 2024 was $41.8 million, or $0.46 per share, and for the full year 2024 was $103.8 million, or $1.14 per share[3]. - The economic return on book value for the full year 2024 was -10.88%[3]. - Net interest income for the three months ended December 31, 2024, was $26,711,000, an increase of 59.5% compared to $16,800,000 for the same period in 2023[27]. - Total net loss from real estate for the three months ended December 31, 2024, was $(5,871,000), a slight improvement from $(6,807,000) in the same period of 2023[27]. - Total other (loss) income for the three months ended December 31, 2024, was $(31,710,000), compared to $40,685,000 for the same period in 2023[27]. - Net (loss) income attributable to the company for the three months ended December 31, 2024, was $(31,389,000), compared to $41,908,000 for the same period in 2023[27]. - Basic (loss) earnings per common share for the three months ended December 31, 2024, was $(0.46), down from $0.35 in the same period of 2023[27]. Interest Income and Expenses - Adjusted interest income increased by 11% in Q4 2024, contributing to a year-over-year growth of 60%[9]. - Interest income for the year ended December 31, 2024, was $401.3 million, while interest expense was $317.4 million, resulting in net interest income of $83.9 million[3]. - The yield on average interest earning assets was 6.57% for Q4 2024 and 6.54% for the full year 2024[3]. - Yield on average interest-earning assets for the three months ended December 31, 2024, was 6.57%, compared to 6.21% for the same period in 2023[29]. - Net interest spread for the three months ended December 31, 2024, was 1.37%, an increase from 1.02% in the same period of 2023[29]. - For the three months ended December 31, 2024, GAAP interest income was $118,253,000, with a total net interest income of $26,711,000[35]. Asset and Liability Growth - The company's portfolio grew by $2.2 billion, or 44%, primarily through acquisitions in liquid agency bond markets and higher-spread bridge loan markets[9]. - Total assets increased to $9,217,282 thousand as of December 31, 2024, up from $7,401,328 thousand in 2023, representing a growth of approximately 24.5%[25]. - Total liabilities grew to $7,806,148 thousand in 2024, up from $5,773,202 thousand in 2023, indicating a rise of around 35.2%[25]. - Repurchase agreements surged to $4,012,225 thousand in 2024, compared to $2,471,113 thousand in 2023, an increase of approximately 62.3%[25]. - Cash and cash equivalents decreased to $167,422 thousand in 2024 from $187,107 thousand in 2023, a decline of approximately 10.5%[25]. Stock and Shareholder Information - The company repurchased 587,347 shares of common stock for approximately $3.5 million at an average repurchase price of $5.95 per share[8]. - The company announced extensions of its common stock and preferred stock repurchase programs, with $189.7 million and $97.6 million remaining available for repurchase, respectively[8]. - Book value per common share as of December 31, 2024, was $9.28, a decrease from $11.31 as of December 31, 2023[29]. - The common shares outstanding as of December 31, 2024, are 90,575, with a GAAP book value per common share of $9.28 and an adjusted book value per common share of $10.35[45]. Future Plans and Reporting - The company plans to file its Annual Report on Form 10-K for the year ended December 31, 2024, with the SEC on or about February 21, 2025[16]. - The conference call to discuss financial results is scheduled for February 20, 2025, at 9:00 a.m. Eastern Time[15]. Business Strategy and Management - The company is internally managed and primarily invests in mortgage-related single-family and multi-family residential assets[17]. - The Company has repositioned its business to opportunistically dispose of joint venture equity investments in multi-family properties as of September 2022[47]. - The Company consolidates the assets, liabilities, income, and expenses of VIEs where it is the primary beneficiary, impacting its financial statements significantly[46]. Depreciation and Adjustments - The cumulative depreciation expense on real estate as of December 31, 2024, is $20.837 million, reflecting ongoing asset management strategies[45]. - The cumulative adjustment of redeemable non-controlling interest to estimated redemption value is $40.675 million as of December 31, 2024, up from $30.062 million in December 2023[45]. - The adjusted book value as of December 31, 2024, is $937.361 million, compared to $1,147.533 million in December 2023, indicating a decline of about 18.3%[45].

Investment Portfolio - As of September 30, 2024, the total investment portfolio amounted to $6,862,803,000, reflecting an increase from $5,911,537,000 as of June 30, 2024[247]. - The residential loans portfolio increased to $2,768,561,000, up from $2,498,247,000, with acquisitions of $624,163,000 and repayments of $267,832,000 during the quarter[247]. - Agency RMBS holdings rose to $2,967,966,000, with acquisitions of $372,162,000 and fair value changes contributing $61,283,000[247]. - The company reported a total of $3,542,766,000 in investment securities, which includes $736,035,000 in new acquisitions and $84,675,000 in repayments[247]. - Preferred equity investments and mezzanine loans totaled $234,447,000, with a decrease of $5,100,000 due to repayments[247]. - Equity investments in consolidated multi-family properties decreased to $154,462,000, reflecting a reduction of $15,011,000 due to disposals[247]. - The investment portfolio increased by approximately $3.1 billion from December 31, 2022, to September 30, 2024, with adjusted interest income rising by over 70% compared to the same period last year[252]. - The company allocated $1,113,345,000 in net capital to single-family residential loans as of September 30, 2024[277]. - The carrying value of the company's investment securities portfolio increased to $4.89 billion as of September 30, 2024, compared to $3.34 billion as of December 31, 2023[349]. Financial Performance - For the three months ended September 30, 2024, the net income attributable to the Company's common stockholders was $32,410,000, compared to a net loss of $61,957,000 for the nine months ended the same date[272]. - The net income attributable to the Company for the three months ended September 30, 2024, was $42,849, a significant improvement of $127,358 compared to a net loss of $84,509 in the same period of 2023[282]. - The basic earnings per common share for the three months ended September 30, 2024, was $0.36, compared to a loss of $1.04 per share in the same period of 2023, reflecting a turnaround of $1.40[282]. - Total other income for the three months ended September 30, 2024, was $52,875, a substantial increase of $138,818 compared to a loss of $85,943 in the same period of 2023[282]. - The company reported a comprehensive income attributable to common stockholders of $32,410,000 for the three months ended September 30, 2024, compared to a comprehensive loss of $94,884,000 in 2023[302]. - The company recognized a gain of $17,903,000 on the sale of real estate during the three months ended September 30, 2024[298]. - The company reported total realized losses, net of $19,404,000 for the nine months ended September 30, 2024, a decrease of $17,184,000 compared to $2,220,000 in the same period of 2023[286]. Interest Income and Expense - For the three months ended September 30, 2024, interest income increased to $108,361, up $43,166 from $65,195 in the same period of 2023, while interest expense rose to $88,124, an increase of $39,718 from $48,406[282]. - The yield on average interest-earning assets for the third quarter of 2024 was 6.69%, an increase from 6.52% for the nine months ended September 30, 2024[272]. - Adjusted interest income for Q3 2024 was $100,986, an increase of approximately $41.7 million compared to Q3 2023[310]. - Adjusted net interest income for Q3 2024 was $28,690, compared to $20,655 in Q3 2023, reflecting a year-over-year increase of 38.7%[311]. - The average financing cost for Q3 2024 was -5.37%, slightly higher than -5.13% in Q3 2023, influenced by base interest rate movements[310][311]. - Adjusted interest expense for Q3 2024 increased by approximately $33.7 million compared to Q3 2023, primarily due to increased repurchase agreement financing[316]. Market Conditions and Economic Indicators - The Federal Reserve cut the target range for the federal funds rate by 50 basis points in September 2024, marking the first cut since March 2020[262]. - The U.S. GDP grew by 2.8% in the third quarter of 2024, marking ten consecutive quarters of growth[260]. - The unemployment rate remained flat at 4.1% as of September 2024, with average hourly earnings rising by 4.0% year-over-year[261]. - Home prices increased by 5.9% for the 20-City Composite over July 2024, while existing home sales in August 2024 were down 4.2% year-over-year[264]. - Multi-family housing starts averaged a seasonally adjusted annual rate of 341,667 for the three months ended September 30, 2024, down from 459,417 for the year ended December 31, 2023[265]. Risks and Challenges - The company continues to face risks related to market volatility, interest rates, and credit spreads, which could impact future performance[244]. - The company continues to face regulatory and political headwinds that may impact cash flows and valuations for multi-family and single-family rental properties[266]. - Interest rate changes could significantly impact the Company's net interest income, with potential declines of $72,912 thousand for a +200 basis points increase and increases of $72,808 thousand for a -200 basis points decrease[427]. - Liquidity risk arises from financing long-maturity assets with shorter-term financings, and the Company manages liquidity needs daily to avoid unplanned asset sales[430]. - The Company faces margin call risk on repurchase agreements, which could adversely affect liquidity if asset values decrease[431]. Asset Management and Strategy - The company aims to deliver long-term stable distributions to stockholders through a diversified investment portfolio, focusing on mortgage-related assets[250]. - The investment strategy includes reallocating capital away from joint venture equity investments in multi-family properties[247]. - The company plans to focus on acquiring assets capable of growing interest income while remaining selective in acquiring residential credit assets[256]. - The company plans to opportunistically dispose of joint venture equity investments in multi-family properties to reallocate capital to targeted assets[364]. - The company plans to continue disposing of assets from its portfolio to pursue investments in the residential housing sector, focusing on less price-sensitive assets like Agency RMBS[392]. Debt and Financing - As of September 30, 2024, the total assets of the company were approximately $8.9 billion, up from $7.4 billion as of December 31, 2023, indicating a growth of 20.3%[332]. - The company had $3.0 billion outstanding under repurchase agreements as of September 30, 2024, with a weighted average interest rate of 5.23%[352][353]. - The company issued $60.0 million in 9.125% Senior Notes due 2029, which were completed on June 28, 2024, to strengthen its capital structure[385]. - The Company had $100.0 million of 5.75% Senior Notes outstanding, maturing on April 30, 2026[403]. - The Company had $60.0 million of 9.125% Senior Notes outstanding, maturing on July 1, 2029[404]. Equity and Shareholder Returns - The Company declared dividends of $0.20 per common share for the third quarter of 2024, totaling $0.60 for the nine months ended the same date[272]. - During the nine months ended September 30, 2024, the Company repurchased 587,347 shares of common stock for a total cost of approximately $3.5 million[413]. - The Company has a preferred stock repurchase program with $97.6 million remaining available for repurchase as of September 30, 2024[412].

Financial Performance - Net income attributable to common stockholders for Q3 2024 was $32,410,000, resulting in earnings per share of $0.36[3] - Net income attributable to the company for the three months ended September 30, 2024, was $42,849,000, a turnaround from a loss of $(84,509,000) in the same period of 2023[26] - The company reported a net loss attributable to common stockholders of $(61,957,000) for the nine months ended September 30, 2024, compared to $(121,500,000) for the same period in 2023, showing improvement[26] - Basic earnings per common share for the three months ended September 30, 2024, was $0.36, compared to a loss of $(1.04) in the same period of 2023[26] Income and Expenses - Total Adjusted Net Interest Income increased by 39% year-over-year to $29 million in Q3 2024[8] - For the three months ended September 30, 2024, net interest income increased to $20,237,000 from $16,789,000 in the same period of 2023, representing a growth of 8.7%[26] - Total general, administrative, and operating expenses for the three months ended September 30, 2024, were $22,826,000, an increase from $16,987,000 in the same period of 2023[26] - The company's GAAP interest expense for the three months ended September 30, 2024, was $88,124, which included $7,375 related to Consolidated SLST CDOs[34] Assets and Liabilities - Total assets increased to $8,905,914 thousand as of September 30, 2024, up from $7,401,328 thousand at December 31, 2023, representing a growth of approximately 20.3%[24] - Total liabilities grew to $7,433,952 thousand as of September 30, 2024, compared to $5,773,202 thousand at December 31, 2023, an increase of around 29%[24] - The company reported a total of $4,051,406 thousand in assets and $3,517,298 thousand in liabilities from consolidated variable interest entities (VIEs) as of September 30, 2024[24] - The total liabilities as of September 30, 2024 are $685,107,000, which includes $492,321,000 in mortgages payable on real estate[48] Equity and Book Value - Book value per common share at the end of the period was $9.83, with an adjusted book value of $10.87[3] - The adjusted book value per common share as of September 30, 2024, was $10.87, compared to $12.93 as of September 30, 2023[28] - The company's accumulated deficit widened to $(1,371,073) thousand as of September 30, 2024, compared to $(1,253,817) thousand at the end of 2023[24] - Stockholders' equity decreased to $1,450,136 thousand from $1,600,065 thousand, a decline of about 9.4%[24] Investments and Securitization - The company completed a securitization of business purpose loans, generating approximately $235.8 million in net proceeds[7] - A joint venture sold a multi-family apartment community for approximately $56.4 million, resulting in a net gain of about $8.7 million[4] - The company owns joint venture equity investments in multi-family properties, consolidating all but two of these entities[45] - The Company is repositioning its business by classifying certain joint venture equity investments as held for sale as of September 30, 2024[46] Interest Rates and Yields - The yield on average interest earning assets was reported at 6.69% for the quarter[3] - The yield on average interest-earning assets for the three months ended September 30, 2024, was 6.69%, up from 6.03% in the same period of 2023[28] - The average financing cost for the period was calculated at $66,297, leading to a net interest spread of approximately 31.5%[34] - The net interest benefit of interest rate swaps contributed $8,453 to adjusted interest income for the three months ended September 30, 2024[34] Cash and Cash Equivalents - The company’s cash and cash equivalents increased to $195,066 thousand from $187,107 thousand, a growth of approximately 4.9%[24]