Management prioritized the rotation of the portfolio by decisively resolving challenged watch list and REO investments to unlock capital for new originations. The company accelerated asset resolutions, concluding that the certainty of monetization and reinvestment outweighed the potential upside of holding assets longer-term. Origination momentum reached a multi-year high in Q4 2025, driven by a 13% sequential increase in the loan portfolio to $2.7 billion. Performance attribution for the quarter's ...

Looking ahead, Taylor said early 2026 momentum has continued and could support higher transaction activity and asset resolution progress. He emphasized ongoing efforts to reduce higher-cost debt and advance asset resolutions, which he said should reduce portfolio risk and improve net interest spread.He also pointed to expanded lending volume, improved conditions in the CMBS market, and stronger CLO issuance. Taylor added that larger commercial banks have been more active—particularly in warehouse financing— ...