Ares Commercial Real Estate (ACRE) 10-Q 1 Aug 23 2023 Q2 Quarterly report Financial data

COVER PAGE

COVER PAGE - shares	6 Months Ended
	Jun. 30, 2023	Aug. 01, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	001-35517
Entity Registrant Name	ARES COMMERCIAL REAL ESTATE CORPORATION
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	45-3148087
Entity Address, Address Line One	245 Park Avenue
Entity Address, Address Line Two	42nd Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10167
City Area Code	212
Local Phone Number	750-7300
Title of 12(b) Security	Common stock, $0.01 par value per share
Trading Symbol	ACRE
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		54,136,273
Entity Central Index Key	0001529377
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
ASSETS
Cash and cash equivalents	$ 142,603	$ 141,278
Loans held for investment ($886,343 and $887,662 related to consolidated VIEs, respectively)	2,228,100	2,264,008
Current expected credit loss reserve	(108,114)	(65,969)
Loans held for investment, net of current expected credit loss reserve	2,119,986	2,198,039
Investment in available-for-sale debt securities, at fair value	27,970	27,936
Other assets ($4,207 and $2,980 of interest receivable related to consolidated VIEs, respectively; $87,950 and $129,495 of other receivables related to consolidated VIEs, respectively)	109,452	155,749
Total assets	2,400,011	2,523,002
LIABILITIES
Secured funding agreements	681,257	705,231
Notes payable	104,559	104,460
Secured term loan	149,295	149,200
Collateralized loan obligation securitization debt (consolidated VIEs)	735,093	777,675
Dividends payable	19,180	19,347
Total liabilities	1,708,820	1,775,462
Commitments and contingencies (Note 9)
STOCKHOLDERS' EQUITY
Common stock, par value $0.01 per share, 450,000,000 shares authorized at June 30, 2023 and December 31, 2022 and 54,136,273 and 54,443,983 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively	532	537
Additional paid-in capital	810,161	812,788
Accumulated other comprehensive income	987	7,541
Accumulated earnings (deficit)	(120,489)	(73,326)
Total stockholders' equity	691,191	747,540
Total liabilities and stockholders' equity	2,400,011	2,523,002
Related Party
LIABILITIES
Due to affiliate	4,806	5,580
Other liabilities ($1,952 and $1,913 of interest payable related to consolidated VIEs, respectively)	4,806	5,580
Nonrelated Party
LIABILITIES
Due to affiliate	14,630	13,969
Other liabilities ($1,952 and $1,913 of interest payable related to consolidated VIEs, respectively)	$ 14,630	$ 13,969

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Loans held for investment	$ 2,228,100	$ 2,264,008
Other assets	$ 109,452	$ 155,749
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	450,000,000	450,000,000
Common stock, shares issued (in shares)	54,136,273	54,443,983
Common stock, shares outstanding (in shares)	54,136,273	54,443,983
Related Party
Payable	$ 4,806	$ 5,580
Nonrelated Party
Payable	14,630	13,969
Variable Interest Entity, Primary Beneficiary
Loans held for investment	886,343,000	887,662,000
Interest receivable	4,207,000	2,980,000
Other assets	87,950,000	129,495,000
Variable Interest Entity, Primary Beneficiary | Nonrelated Party
Payable	$ 1,952,000	$ 1,913,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenue:
Interest income	$ 51,941	$ 38,621	$ 101,441	$ 71,986
Interest expense	(26,951)	(13,475)	(49,950)	(25,488)
Net interest margin	24,990	25,146	51,491	46,498
Revenue from real estate owned	0	0	0	2,672
Total revenue	24,990	25,146	51,491	49,170
Expenses:
Management and incentive fees to affiliate	3,334	3,766	6,344	6,740
Professional fees	626	1,100	1,397	1,878
General and administrative expenses	2,038	1,587	3,723	3,200
General and administrative expenses reimbursed to affiliate	1,109	796	1,842	1,631
Expenses from real estate owned	0	0	0	4,309
Total expenses	7,107	7,249	13,306	17,758
Provision for current expected credit losses	20,127	7,768	41,146	7,174
Realized losses on loans sold	0	0	(5,613)	0
Gain on sale of real estate owned	0	0	0	2,197
Income (loss) before income taxes	(2,244)	10,129	(8,574)	26,435
Income tax expense (benefit), including excise tax	(46)	98	64	204
Net income (loss) attributable to common stockholders	$ (2,198)	$ 10,031	$ (8,638)	$ 26,231
Earnings (loss) per common share:
Basic earnings (loss) per common share (in dollars per share)	$ (0.04)	$ 0.20	$ (0.16)	$ 0.54
Diluted earnings (loss) per common share (in dollars per share)	$ (0.04)	$ 0.20	$ (0.16)	$ 0.53
Weighted average number of common shares outstanding:
Basic weighted average shares of common stock outstanding (in shares)	54,347,204	50,562,559	54,468,752	48,892,754
Diluted weighted average shares of common stock outstanding (in shares)	54,347,204	50,999,505	54,468,752	49,336,267
Dividends per share amount declared (in dollars per share)	$ 0.35	$ 0.35	$ 0.70	$ 0.70

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income (loss) attributable to common stockholders	$ (2,198)	$ 10,031	$ (8,638)	$ 26,231
Other comprehensive income:
Realized and unrealized gains (losses) on derivative financial instruments	(2,099)	1,931	(6,576)	9,545
Unrealized gains (losses) on available-for-sale debt securities	(43)	0	22	0
Comprehensive income (loss)	$ (4,340)	$ 11,962	$ (15,192)	$ 35,776

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income	Accumulated Earnings (Deficit)
Beginning balance (in shares) at Dec. 31, 2021		47,144,058
Beginning balance at Dec. 31, 2021	$ 678,628	$ 465	$ 703,950	$ 2,844	$ (28,631)
Increase (Decrease) in Stockholders' Equity
Sale of common stock (in shares)		190,369
Sale of common stock	2,874	$ 2	2,872
Offering costs	(9)		(9)
Stock-based compensation (in shares)		78,009
Stock‑based compensation	766		766
Other comprehensive income (loss)	7,614			7,614
Net income (loss)	16,201				16,201
Dividends declared	(16,740)				(16,740)
Ending balance (in shares) at Mar. 31, 2022		47,412,436
Ending balance at Mar. 31, 2022	689,334	$ 467	707,579	10,458	(29,170)
Beginning balance (in shares) at Dec. 31, 2021		47,144,058
Beginning balance at Dec. 31, 2021	678,628	$ 465	703,950	2,844	(28,631)
Increase (Decrease) in Stockholders' Equity
Net income (loss)	26,231
Ending balance (in shares) at Jun. 30, 2022		54,438,363
Ending balance at Jun. 30, 2022	786,000	$ 537	811,411	12,389	(38,337)
Beginning balance (in shares) at Mar. 31, 2022		47,412,436
Beginning balance at Mar. 31, 2022	689,334	$ 467	707,579	10,458	(29,170)
Increase (Decrease) in Stockholders' Equity
Sale of common stock (in shares)		7,000,000
Sale of common stock	103,393	$ 70	103,323
Offering costs	(190)		(190)
Stock-based compensation (in shares)		25,927
Stock‑based compensation	699		699
Other comprehensive income (loss)	1,931			1,931
Net income (loss)	10,031				10,031
Dividends declared	(19,198)				(19,198)
Ending balance (in shares) at Jun. 30, 2022		54,438,363
Ending balance at Jun. 30, 2022	786,000	$ 537	811,411	12,389	(38,337)
Increase (Decrease) in Stockholders' Equity
Offering costs	(34)		(34)
Stock‑based compensation	673		673
Other comprehensive income (loss)	(1,010)			(1,010)
Net income (loss)	644				644
Dividends declared	(19,196)				(19,196)
Ending balance (in shares) at Sep. 30, 2022		54,438,363
Ending balance at Sep. 30, 2022	767,077	$ 537	812,050	11,379	(56,889)
Increase (Decrease) in Stockholders' Equity
Stock-based compensation (in shares)		5,620
Stock‑based compensation	738		738
Other comprehensive income (loss)	(3,838)			(3,838)
Net income (loss)	2,909				2,909
Dividends declared	$ (19,346)				(19,346)
Ending balance (in shares) at Dec. 31, 2022	54,443,983	54,443,983
Ending balance at Dec. 31, 2022	$ 747,540	$ 537	812,788	7,541	(73,326)
Increase (Decrease) in Stockholders' Equity
Stock-based compensation (in shares)		162,843
Stock‑based compensation	960		960
Other comprehensive income (loss)	(4,412)			(4,412)
Net income (loss)	(6,439)				(6,439)
Dividends declared	(19,346)				(19,346)
Ending balance (in shares) at Mar. 31, 2023		54,606,826
Ending balance at Mar. 31, 2023	$ 718,303	$ 537	813,748	3,129	(99,111)
Beginning balance (in shares) at Dec. 31, 2022	54,443,983	54,443,983
Beginning balance at Dec. 31, 2022	$ 747,540	$ 537	812,788	7,541	(73,326)
Increase (Decrease) in Stockholders' Equity
Net income (loss)	$ (8,638)
Ending balance (in shares) at Jun. 30, 2023	54,136,273	54,136,273
Ending balance at Jun. 30, 2023	$ 691,191	$ 532	810,161	987	(120,489)
Beginning balance (in shares) at Mar. 31, 2023		54,606,826
Beginning balance at Mar. 31, 2023	718,303	$ 537	813,748	3,129	(99,111)
Increase (Decrease) in Stockholders' Equity
Offering costs, net	4		4
Stock-based compensation (in shares)		65,412
Stock‑based compensation	1,004		1,004
Repurchase and retirement of common stock (in shares)		(535,965)
Repurchase and retirement of common stock	(4,600)	$ (5)	(4,595)
Other comprehensive income (loss)	(2,142)			(2,142)
Net income (loss)	(2,198)				(2,198)
Dividends declared	$ (19,180)				(19,180)
Ending balance (in shares) at Jun. 30, 2023	54,136,273	54,136,273
Ending balance at Jun. 30, 2023	$ 691,191	$ 532	$ 810,161	$ 987	$ (120,489)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Operating activities:
Net income (loss)	$ (8,638)	$ 26,231
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Amortization of deferred financing costs	1,901	4,058
Accretion of discounts, deferred loan origination fees and costs	(3,402)	(4,938)
Stock-based compensation	1,965	1,465
Provision for current expected credit losses	41,146	7,174
Realized losses on loans sold	5,613	0
Amortization of derivative financial instruments	(723)	(253)
Gain on sale of real estate owned	0	(2,197)
Changes in operating assets and liabilities:
Other assets	(15,707)	(1,930)
Due to affiliate	(774)	406
Other liabilities	1,775	(864)
Net cash provided by (used in) operating activities	23,156	29,152
Investing activities:
Issuance of and fundings on loans held for investment	(93,891)	(523,735)
Principal repayment of loans held for investment	145,335	400,429
Proceeds from sale of loans held for sale	37,200	0
Receipt of origination fees	658	6,794
Proceeds from sale of real estate owned	0	38,227
Amounts received (paid) under derivative financial instruments	0	2,085
Net cash provided by (used in) investing activities	89,302	(76,200)
Financing activities:
Repayments of notes payable	0	(51,110)
Payment of secured funding costs	(1,001)	(1,663)
Repayments of debt of consolidated VIEs	(42,865)	(11,000)
Dividends paid	(38,693)	(33,414)
Proceeds from sale of common stock	0	106,267
Repurchase of common stock	(4,600)	0
Payment of offering costs	0	(34)
Net cash provided by (used in) financing activities	(111,133)	22,058
Change in cash and cash equivalents	1,325	(24,990)
Cash and cash equivalents, beginning of period	141,278	50,615
Cash and cash equivalents, end of period	142,603	25,625
Supplemental disclosure of noncash investing and financing activities:
Dividends declared, but not yet paid	19,180	19,198
Other receivables related to consolidated VIEs	87,950	65,229
Secured funding agreements
Financing activities:
Proceeds from secured funding agreements	14,960	225,192
Repayments of secured funding agreements	$ (38,934)	$ (212,180)

ORGANIZATION

ORGANIZATION	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION	ORGANIZATION Ares Commercial Real Estate Corporation (together with its consolidated subsidiaries, the “Company” or “ACRE”) is a specialty finance company primarily engaged in originating and investing in commercial real estate loans and related investments. Through Ares Commercial Real Estate Management LLC (“ACREM” or the Company’s “Manager”), a Securities and Exchange Commission (“SEC”) registered investment adviser and a subsidiary of Ares Management Corporation (NYSE: ARES) (“Ares Management” or “Ares”), a publicly traded, leading global alternative investment manager, it has investment professionals strategically located across the United States and Europe who directly source new loan opportunities for the Company with owners, operators and sponsors of commercial real estate (“CRE”) properties. The Company was formed and commenced operations in late 2011. The Company is a Maryland corporation and completed its initial public offering in May 2012. The Company is externally managed by its Manager, pursuant to the terms of a management agreement (the “Management Agreement”). The Company operates as one operating segment and is primarily focused on directly originating and managing a diversified portfolio of CRE debt-related investments for the Company’s own account. The Company’s target investments include senior mortgage loans, subordinated debt, preferred equity, mezzanine loans and other CRE investments, including commercial mortgage backed securities. These investments are generally held for investment and are secured, directly or indirectly, by office, multifamily, retail, industrial, lodging, self storage, student housing, residential and other commercial real estate properties, or by ownership interests therein. The Company has elected and qualified to be taxed as a real estate investment trust (“REIT”) for United States federal income tax purposes under the Internal Revenue Code of 1986, as amended (the “Code”), commencing with its taxable year ended December 31, 2012. The Company generally will not be subject to United States federal income taxes on its REIT taxable income as long as it annually distributes all of its REIT taxable income prior to the deduction for dividends paid to stockholders and complies with various other requirements as a REIT.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements and the related management's discussion and analysis of financial condition and results of operations included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022 filed with the SEC. Refer to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 for a description of the Company’s recurring accounting policies. The Company has included disclosure below regarding basis of presentation and other accounting policies that (i) are required to be disclosed quarterly or (ii) the Company views as critical as of the date of this report. Basis of Presentation The accompanying unaudited consolidated interim financial statements have been prepared on the accrual basis of accounting in conformity with United States generally accepted accounting principles (“GAAP”) and include the accounts of the Company, the consolidated variable interest entities (“VIEs”) that the Company controls and of which the Company is the primary beneficiary, and the Company’s wholly-owned subsidiaries. The unaudited consolidated interim financial statements reflect all adjustments and reclassifications that, in the opinion of management, are necessary for the fair presentation of the Company’s results of operations and financial condition as of and for the periods presented. All intercompany balances and transactions have been eliminated. The unaudited consolidated interim financial statements are prepared in accordance with GAAP and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X. The current period’s results of operations will not necessarily be indicative of results for any other interim period or that ultimately may be achieved for the year ending December 31, 2023. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Global macroeconomic conditions, including high inflation, changes to fiscal and monetary policy, high interest rates, potential market-wide liquidity problems, currency fluctuations, labor shortages and challenges in the supply chain, have the potential to negatively impact the Company and its borrowers. These current macroeconomic conditions may continue or aggravate and could cause the United States economy or other global economies to experience an economic slowdown or recession. We anticipate our business and operations could be materially adversely affected by a prolonged recession in the United States or other major global economy. The Company believes the estimates and assumptions underlying its consolidated financial statements are reasonable and supportable based on the information available as of June 30, 2023, however, uncertainty over the global economy and the Company’s business, makes any estimates and assumptions as of June 30, 2023 inherently less certain than they would be absent the current and potential impacts of current macroeconomic conditions. Actual results could differ from those estimates. Variable Interest Entities The Company evaluates all of its interests in VIEs for consolidation. When the Company’s interests are determined to be variable interests, the Company assesses whether it is deemed to be the primary beneficiary of the VIE. The primary beneficiary of a VIE is required to consolidate the VIE. Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, Consolidation , defines the primary beneficiary as the party that has both (i) the power to direct the activities of the VIE that most significantly impact its economic performance, and (ii) the obligation to absorb losses and the right to receive benefits from the VIE which could be potentially significant. The Company considers its variable interests, as well as any variable interests of its related parties in making this determination. Where both of these factors are present, the Company is deemed to be the primary beneficiary and it consolidates the VIE. Where either one of these factors is not present, the Company is not the primary beneficiary and it does not consolidate the VIE. To assess whether the Company has the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, the Company considers all facts and circumstances, including its role in establishing the VIE and its ongoing rights and responsibilities. This assessment includes first, identifying the activities that most significantly impact the VIE’s economic performance; and second, identifying which party, if any, has power over those activities. In general, the parties that make the most significant decisions affecting the VIE or have the right to unilaterally remove those decision makers are deemed to have the power to direct the activities of a VIE. To assess whether the Company has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, the Company considers all of its economic interests, including debt and equity investments, servicing fees, and other arrangements deemed to be variable interests in the VIE. This assessment requires that the Company applies judgment in determining whether these interests, in the aggregate, are considered potentially significant to the VIE. Factors considered in assessing significance include: the design of the VIE, including its capitalization structure; subordination of interests; payment priority; relative share of interests held across various classes within the VIE’s capital structure; and the reasons why the interests are held by the Company. For VIEs of which the Company is determined to be the primary beneficiary, all of the underlying assets, liabilities, equity, revenue and expenses of the structures are consolidated into the Company’s consolidated financial statements. The Company performs an ongoing reassessment of: (1) whether any entities previously evaluated under the majority voting interest framework have become VIEs, based on certain events, and therefore are subject to the VIE consolidation framework, and (2) whether changes in the facts and circumstances regarding its involvement with a VIE cause the Company’s consolidation conclusion regarding the VIE to change. See Note 16 included in these consolidated financial statements for further discussion of the Company’s VIEs. Cash and Cash Equivalents Cash and cash equivalents include funds on deposit with financial institutions, including demand deposits with financial institutions. Cash and short‑term investments with an original maturity of three months or less when acquired are considered cash and cash equivalents for the purpose of the consolidated balance sheets and statements of cash flows. Loans Held for Investment The Company originates CRE debt and related instruments generally to be held for investment. Loans that are held for investment are carried at cost, net of unamortized loan fees and origination costs (the “carrying value”). Loans are generally collateralized by real estate. The extent of any credit deterioration associated with the performance and/or value of the underlying collateral property and the financial and operating capability of the borrower could impact the expected amounts received. The Company monitors performance of its loans held for investment portfolio under the following methodology: (1) borrower review, which analyzes the borrower’s ability to execute on its original business plan, reviews its financial condition, assesses pending litigation and considers its general level of responsiveness and cooperation; (2) economic review, which considers underlying collateral (i.e. leasing performance, unit sales and cash flow of the collateral and its ability to cover debt service, as well as the residual loan balance at maturity); (3) property review, which considers current environmental risks, changes in insurance costs or coverage, current site visibility, capital expenditures and market perception; and (4) market review, which analyzes the collateral from a supply and demand perspective of similar property types, as well as from a capital markets perspective. Such analyses are completed and reviewed by asset management and finance personnel who utilize various data sources, including periodic financial data such as property occupancy, tenant profile, rental rates, operating expenses, and the borrower’s exit plan, among other factors. Loans are generally placed on non-accrual status when principal or interest payments are past due 30 days or more or when there is reasonable doubt that principal or interest will be collected in full. Accrued and unpaid interest is generally reversed against interest income in the period the loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment regarding the borrower’s ability to make pending principal and interest payments. Non-accrual loans are restored to accrual status when past due principal and interest are paid and, in management’s judgment, are likely to remain current. The Company may make exceptions to placing a loan on non-accrual status if the loan has sufficient collateral value and is in the process of collection. Loan balances that are deemed to be uncollectible are written off as a realized loss and are deducted from the current expected credit loss reserve. The write-offs are recorded in the period in which the loan balance is deemed uncollectible based on management’s judgment. Current Expected Credit Losses FASB ASC Topic 326, Financial Instruments—Credit Losses (“ASC 326”) , requires the Company to reflect current expected credit losses (“CECL”) on both the outstanding balances and unfunded commitments on loans held for investment and requires consideration of a broad range of historical experience adjusted for current conditions and reasonable and supportable forecast information to inform credit loss estimates (the “CECL Reserve”). Increases and decreases to expected credit losses impact earnings and are recorded within provision for current expected credit losses in the Company’s consolidated statements of operations. The CECL Reserve related to outstanding balances on loans held for investment required under ASC 326 is a valuation account that is deducted from the amortized cost basis of the Company’s loans held for investment in the Company’s consolidated balance sheets. The CECL Reserve related to unfunded commitments on loans held for investment is recorded within other liabilities in the Company's consolidated balance sheets. See Note 4 included in these consolidated financial statements for CECL related disclosures. Loans Held for Sale Although the Company generally holds its target investments as long-term investments, the Company occasionally classifies some of its investments as held for sale. Investments held for sale are carried at fair value within loans held for sale, at fair value in the Company’s consolidated balance sheets, with changes in fair value recorded through earnings. Real Estate Owned Real estate assets are carried at their estimated fair value at acquisition and are presented net of accumulated depreciation and impairment charges. The Company allocates the purchase price of acquired real estate assets based on the fair value of the acquired land, building, furniture, fixtures and equipment. Real estate assets are depreciated using the straight-line method over estimated useful lives of up to 40 years for buildings and improvements and up to 15 years for furniture, fixtures and equipment. Renovations and/or replacements that improve or extend the life of the real estate asset are capitalized and depreciated over their estimated useful lives. The cost of ordinary repairs and maintenance are expensed as incurred. Real estate assets are evaluated for indicators of impairment on a quarterly basis. Factors that the Company may consider in its impairment analysis include, among others: (1) significant underperformance relative to historical or anticipated operating results; (2) significant negative industry or economic trends; (3) costs necessary to extend the life or improve the real estate asset; (4) significant increase in competition; and (5) ability to hold and dispose of the real estate asset in the ordinary course of business. A real estate asset is considered impaired when the sum of estimated future undiscounted cash flows expected to be generated by the real estate asset over the estimated remaining holding period is less than the carrying amount of such real estate asset. Cash flows include operating cash flows and anticipated capital proceeds generated by the real estate asset. An impairment charge is recorded equal to the excess of the carrying value of the real estate asset over the fair value. When determining the fair value of a real estate asset, the Company makes certain assumptions including, but not limited to, consideration of projected operating cash flows, comparable selling prices and projected cash flows from the eventual disposition of the real estate asset based upon the Company’s estimate of a capitalization rate and discount rate. The Company reviews its real estate assets, from time to time, in order to determine whether to sell such assets. Real estate assets are classified as held for sale when the Company commits to a plan to sell the asset, when the asset is being actively marketed for sale at a reasonable price and the sale of the asset is probable and the transfer of the asset is expected to qualify for recognition as a completed sale within one year. Real estate assets that are held for sale are carried at the lower of the asset’s carrying amount or its fair value less costs to sell. Available-for-Sale Debt Securities The Company acquires debt securities that are collateralized by mortgages on CRE properties primarily for short-term cash management and investment purposes. On the acquisition date, the Company designates investments in CRE debt securities as available-for-sale. Investments in CRE debt securities that are classified as available-for-sale are carried at fair value. Unrealized holding gains and losses for available-for-sale debt securities are recorded each period in other comprehensive income (“OCI”). The Company uses a specific identification method when determining the cost of a debt security sold and the amount of unrealized gain or loss reclassified from accumulated other comprehensive income (loss) into earnings. Available-for-sale debt securities that are in an unrealized loss position are evaluated on a quarterly basis to determine whether declines in the fair value below the amortized cost basis qualify as other than temporary impairment (“OTTI”). The OTTI assessment is performed at the individual security level. In assessing whether the entire amortized cost basis of each security will be recovered, the Company will compare the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis of the security, the entire amortized cost basis of the security will not be recovered and an OTTI shall be considered to have occurred. Available-for-sale debt securities are generally placed on non-accrual status when principal or interest payments are past due 30 days or more or when there is reasonable doubt that principal or interest will be collected in full. Accrued and unpaid interest is generally reversed against interest income in the period the debt security is placed on non-accrual status. Interest payments received on non-accrual securities may be recognized as income or applied to principal depending upon management’s judgment regarding collectability of the debt security. Non-accrual debt securities are restored to accrual status when past due principal and interest are paid and, in management’s judgment, are likely to remain current. Debt Issuance Costs Debt issuance costs under the Company’s indebtedness are capitalized and amortized over the term of the respective debt instrument. Unamortized debt issuance costs are expensed when the associated debt is repaid prior to maturity. Debt issuance costs related to debt securitizations are capitalized and amortized over the term of the underlying loans using the effective interest method. When an underlying loan is prepaid in a debt securitization and the outstanding principal balance of the securitization debt is reduced, the related unamortized debt issuance costs are charged to expense based on a pro‑rata share of the debt issuance costs being allocated to the specific loans that were prepaid. Amortization of debt issuance costs is included within interest expense, except as noted below, in the Company’s consolidated statements of operations while the unamortized balance on the (i) Secured Funding Agreements (each individually defined in Note 6 included in these consolidated financial statements) is included within other assets and (ii) Notes Payable, the Secured Term Loan (each defined in Note 6 included in these consolidated financial statements) and secured borrowings (described in Note 7 included in these consolidated financial statements) and debt securitizations are each included as a reduction to the carrying amount of the liability in the Company’s consolidated balance sheets. Amortization of debt issuance costs for the note payable on the hotel property that was recognized as real estate owned in the Company’s consolidated balance sheets (see Note 6 included in these consolidated financial statements for additional information on the note payable) is included within expenses from real estate owned in the Company’s consolidated statements of operations. Derivative Financial Instruments Derivative financial instruments are classified as either other assets (gain positions) or other liabilities (loss positions) in the Company’s consolidated balance sheets at fair value. These amounts may be offset to the extent that there is a legal right to offset and if elected by management. On the date the Company enters into a derivative contract, the Company designates each contract as a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability, or cash flow hedge, or as a derivative instrument not to be designated as a hedging derivative, or non-designated hedge. For all derivatives other than those designated as non-designated hedges, the Company formally documents the hedge relationships and designation at the contract’s inception. This documentation includes the identification of the hedging instruments and the hedged items, its risk management objectives, strategy for undertaking the hedge transaction and an evaluation of the effectiveness of its hedged transaction. The Company performs a formal assessment on a quarterly basis on whether the derivative designated in each hedging relationship is expected to be, and has been, highly effective in offsetting changes in the value or cash flows of the hedged items. Changes in the fair value of derivative contracts are recorded each period in either current earnings or OCI, depending on whether the derivative is designated as part of a hedge transaction and, if so, the type of hedge transaction. For derivatives that are designated as cash flow hedges, the effective portion of the unrealized gains or losses on these contracts is recorded in OCI. If it is determined that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued and the changes in fair value of the instrument are included in current earnings prospectively. The Company does not enter into derivatives for trading or speculative purposes. Revenue Recognition Interest income is accrued based on the outstanding principal amount and the contractual terms of each loan or debt security. For loans held for investment, the origination fees, contractual exit fees and direct loan origination costs are also recognized in interest income over the initial loan term as a yield adjustment using the effective interest method. For available-for-sale debt securities, premiums or discounts are amortized or accreted into interest income as a yield adjustment using the effective interest method. Revenue from real estate owned represents revenue associated with the operations of a hotel property classified as real estate owned that was sold in March 2022. Revenue from the operation of the hotel property was recognized when guestrooms were occupied, services had been rendered or fees had been earned. Revenues were recorded net of any discounts and sales and other taxes collected from customers. Revenues consisted of room sales, food and beverage sales and other hotel revenues. Net Interest Margin and Interest Expense Net interest margin in the Company’s consolidated statements of operations serves to measure the performance of the Company’s loans and debt securities as compared to its use of debt leverage. The Company includes interest income from its loans and debt securities and interest expense related to its Secured Funding Agreements, Notes Payable, securitization debt, the Secured Term Loan (each individually defined in Note 6 included in these consolidated financial statements) and secured borrowings (described in Note 7 included in these consolidated financial statements) in net interest margin. For the three and six months ended June 30, 2023 and 2022, interest expense is comprised of the following ($ in thousands): For the three months ended June 30, For the six months ended June 30, 2023 2022 2023 2022 Secured funding agreements $ 13,081 $ 6,342 $ 25,392 $ 11,469 Notes payable (1) 1,904 531 3,663 984 Securitization debt 12,428 5,591 24,034 9,942 Secured term loan 1,754 1,752 3,488 3,484 Secured borrowings — 296 — 588 Other (2) (2,216) (1,037) (6,627) (979) Interest expense $ 26,951 $ 13,475 $ 49,950 $ 25,488 ____________________________ (1) Excludes interest expense on the $28.3 million note payable, which was secured by a hotel property that was recognized as real estate owned in the Company’s consolidated balance sheet (see Note 6 included in these consolidated financial statements for additional information on the note payable). Interest expense on the $28.3 million note payable is included within expenses from real estate owned in the Company’s consolidated statements of operations. (2) Represents the net interest expense recognized from the Company’s derivative financial instruments upon periodic settlement. Comprehensive Income Comprehensive income consists of net income and OCI that are excluded from net income. Recent Accounting Pronouncements The Company considers the applicability and impact of all accounting standard updates (“ASU”) issued by the FASB. ASUs were assessed and determined either to be not applicable or expected to have minimal impact on its unaudited consolidated financial statements.

LOANS HELD FOR INVESTMENT

LOANS HELD FOR INVESTMENT	6 Months Ended
	Jun. 30, 2023
Receivables [Abstract]
LOANS HELD FOR INVESTMENT	LOANS HELD FOR INVESTMENT As of June 30, 2023, the Company’s portfolio included 53 loans held for investment, excluding 158 loans that were repaid, sold or converted to real estate owned since inception. The aggregate originated commitment under these loans at closing was approximately $2.5 billion and outstanding principal was $2.3 billion as of June 30, 2023. During the six months ended June 30, 2023, the Company funded approximately $106.8 million of outstanding principal, received repayments of $97.2 million of outstanding principal and sold two loans with aggregate outstanding principal of $41.5 million to third parties. As of June 30, 2023, 71.2% of the Company’s loans have Secured Overnight Financing Rate (“SOFR”) floors, with a weighted average floor of 1.12%, calculated based on loans with SOFR floors. References to SOFR or “S” are to 30-day SOFR (unless otherwise specifically stated). The Company’s investments in loans held for investment are accounted for at amortized cost. The following tables summarize the Company’s loans held for investment as of June 30, 2023 and December 31, 2022 ($ in thousands): As of June 30, 2023 Carrying Amount (1) Outstanding Principal (1) Weighted Average Unleveraged Effective Yield Weighted Average Remaining Life (Years) Senior mortgage loans $ 2,190,809 $ 2,212,972 8.8 % (2) 9.5 % (3) 1.3 Subordinated debt and preferred equity investments 37,291 39,098 8.0 % (2) 15.1 % (3) 2.3 Total loans held for investment portfolio $ 2,228,100 $ 2,252,070 8.7 % (2) 9.5 % (3) 1.3 As of December 31, 2022 Carrying Amount (1) Outstanding Principal (1) Weighted Average Unleveraged Effective Yield Weighted Average Remaining Life (Years) Senior mortgage loans $ 2,225,725 $ 2,243,818 8.4 % (2) 8.8 % (3) 1.3 Subordinated debt and preferred equity investments 38,283 39,003 14.0 % (2) 14.0 % (3) 2.8 Total loans held for investment portfolio $ 2,264,008 $ 2,282,821 8.5 % (2) 8.9 % (3) 1.4 ______________________________ (1) The difference between the Carrying Amount and the Outstanding Principal amount of the loans held for investment consists of unamortized purchase discount, deferred loan fees and loan origination costs. (2) Unleveraged Effective Yield is the compounded effective rate of return that would be earned over the life of the investment based on the contractual interest rate (adjusted for any deferred loan fees, costs, premiums or discounts) and assumes no dispositions, early prepayments or defaults. The total Weighted Average Unleveraged Effective Yield is calculated based on the average of Unleveraged Effective Yield of all loans held by the Company as of June 30, 2023 and December 31, 2022 as weighted by the outstanding principal balance of each loan. (3) Unleveraged Effective Yield is the compounded effective rate of return that would be earned over the life of the investment based on the contractual interest rate (adjusted for any deferred loan fees, costs, premiums or discounts) and assumes no dispositions, early prepayments or defaults. The total Weighted Average Unleveraged Effective Yield is calculated based on the average of Unleveraged Effective Yield of all interest accruing loans held by the Company as of June 30, 2023 and December 31, 2022 as weighted by the total outstanding principal balance of each interest accruing loan (excludes loans on non-accrual status as of June 30, 2023 and December 31, 2022). A more detailed listing of the Company’s loans held for investment portfolio based on information available as of June 30, 2023 is as follows ($ in millions, except percentages): Loan Type Location Outstanding Principal (1) Carrying Amount (1) Interest Rate Unleveraged Effective Yield (2) Maturity Date (3) Payment Terms (4) Senior Mortgage Loans: Office IL $156.8 $154.0 (5) 7.4% (5) Mar 2025 (5) I/O Multifamily NY 132.2 131.1 S+3.90% 9.5% Jun 2025 I/O Office Diversified 122.2 122.0 S+3.75% 9.1% Jan 2024 P/I (6) Industrial IL 100.1 99.8 S+4.65% 10.2% May 2024 I/O Multifamily TX 100.0 99.3 S+3.50% 9.5% Jul 2025 I/O Mixed-use FL 82.7 82.7 S+4.25% 9.5% Feb 2023 (7) I/O Residential Condominium NY 81.4 81.2 S+8.95% 15.9% Oct 2023 (8) I/O Office AZ 79.1 78.7 S+3.61% 9.2% Oct 2024 I/O Mixed-use NY 75.7 75.4 S+3.75% 9.3% Jul 2024 I/O Residential Condominium FL 75.0 75.0 S+5.35% 11.0% Jul 2024 (9) I/O Office NY 72.2 71.7 S+3.95% 9.5% Aug 2025 I/O Office NC 68.8 68.7 S+4.35% 9.8% Mar 2024 (10) P/I (6) Multifamily TX 68.2 67.9 S+2.95% 8.5% Dec 2024 I/O Office NC 68.0 67.7 S+3.65% 9.2% Aug 2024 I/O Multifamily/Office SC 67.0 66.9 S+3.00% 8.4% Nov 2024 I/O Office IL 56.9 52.5 S+3.95% —% (11) Dec 2023 (11) I/O Office IL 56.0 55.6 S+4.25% 9.9% Jan 2025 I/O Office GA 48.6 48.5 S+3.15% 8.6% Dec 2023 P/I (6) Industrial MA 47.0 46.8 S+2.90% 8.2% Jun 2028 I/O Hotel CA 42.0 41.6 S+4.20% 9.9% Mar 2025 I/O Hotel NY 39.5 39.0 S+4.40% 9.9% Mar 2026 I/O Office MA 38.1 37.5 S+3.75% 9.5% Apr 2025 I/O Mixed-use CA 37.9 37.9 S+4.10% 9.3% Mar 2023 (12) I/O Mixed-use TX 35.3 35.2 S+3.85% 9.3% Sep 2024 I/O Hotel IL 35.0 29.6 S+4.00% —% (13) May 2024 I/O Student Housing CA 34.0 34.0 S+3.95% 9.1% Jan 2024 (14) I/O Office CA 33.2 31.9 S+3.45% —% (15) Nov 2023 (15) I/O Multifamily CA 31.7 31.5 S+3.00% 8.4% Dec 2025 I/O Multifamily PA 29.2 29.2 S+4.00% 9.4% Dec 2023 P/I (6) Industrial NJ 27.8 27.7 S+3.85% 9.6% May 2024 I/O Industrial FL 25.5 25.4 S+3.00% 8.4% Dec 2025 I/O Multifamily WA 23.1 23.0 S+3.00% 8.3% Nov 2025 I/O Office CA 22.9 22.8 S+3.50% 8.9% Nov 2023 I/O Multifamily TX 22.6 22.4 S+2.60% 8.1% Oct 2024 I/O Industrial CA 19.6 19.5 S+3.85% 9.3% Sep 2024 (16) I/O Student Housing AL 19.5 19.4 S+3.95% 9.5% May 2024 I/O Multifamily WA 18.7 18.7 S+3.10% 8.8% Sep 2023 (17) I/O Self Storage PA 18.2 18.1 S+3.00% 8.4% Dec 2025 I/O Self Storage NJ 17.6 17.4 S+2.90% 8.8% Apr 2025 I/O Self Storage WA 11.5 11.4 S+2.90% 8.8% Mar 2025 I/O Industrial TX 10.0 9.9 S+5.35% 10.9% Dec 2024 I/O Self Storage MA 8.5 8.5 S+3.00% 8.3% Dec 2024 I/O Self Storage TX 8.0 8.0 S+3.00% 8.4% Aug 2024 I/O Self Storage MA 7.7 7.7 S+3.00% 8.3% Nov 2024 I/O Self Storage MA 6.7 6.7 S+3.00% 8.4% Oct 2024 I/O Self Storage MO 6.5 6.5 S+3.10% 8.4% Dec 2023 I/O Industrial TN 6.4 6.4 S+5.60% 11.1% Nov 2024 I/O Self Storage NJ 5.9 5.9 S+3.00% 8.6% Jul 2024 I/O Self Storage IL 5.6 5.6 S+3.10% 8.6% Dec 2023 I/O Industrial FL 4.0 4.0 S+5.75% 11.3% Mar 2025 I/O Self Storage TX 2.9 2.9 S+3.00% 8.3% Sep 2024 I/O Subordinated Debt and Preferred Multifamily SC 20.6 20.5 S+9.53% 15.1% Sep 2025 I/O Office NJ 18.5 16.8 12.00% —% (18) Jan 2026 I/O Total/Weighted Average $2,252.1 $2,228.1 8.7% _________________________ (1) The difference between the Carrying Amount and the Outstanding Principal amount of the loans held for investment consists of unamortized purchase discount, deferred loan fees and loan origination costs. For the loans held for investment that represent co-investments with other investment vehicles managed by Ares Management (see Note 14 included in these consolidated financial statements for additional information on co-investments), only the portion of Carrying Amount and Outstanding Principal held by the Company is reflected. (2) Unleveraged Effective Yield is the compounded effective rate of return that would be earned over the life of the investment based on the contractual interest rate (adjusted for any deferred loan fees, costs, premiums or discounts) and assumes no dispositions, early prepayments or defaults. Unleveraged Effective Yield for each loan is calculated based on SOFR as of June 30, 2023 or the SOFR floor, as applicable. The total Weighted Average Unleveraged Effective Yield is calculated based on the average of Unleveraged Effective Yield of all loans held by the Company as of June 30, 2023 as weighted by the outstanding principal balance of each loan. (3) Certain loans are subject to contractual extension options that generally vary between one and two 12-month extensions and may be subject to performance based or other conditions as stipulated in the loan agreement. Actual maturities may differ from contractual maturities stated herein as certain borrowers may have the right to prepay with or without paying a prepayment penalty. The Company may also extend contractual maturities and amend other terms of the loans in connection with loan modifications. (4) I/O = interest only, P/I = principal and interest. (5) The Illinois loan is structured as both a senior and mezzanine loan with the Company holding both positions. The senior position has a per annum interest rate of S + 2.25% and the mezzanine position has a fixed per annum interest rate of 10.00%. The mezzanine position of this loan, which had an outstanding principal balance of $42.8 million as of June 30, 2023, was on non-accrual status as of June 30, 2023 and therefore, the Unleveraged Effective Yield presented is for the senior position only as the mezzanine position is non-interest accruing. In March 2023, the Company and the borrower entered into a modification and extension agreement to, among other things, extend the maturity date on the Illinois loan from March 2023 to March 2025. For the three and six months ended June 30, 2023, the Company received $1.7 million of interest payments and other fees in cash on the mezzanine position of the Illinois loan that was recognized as a reduction to the carrying value of the loan and the borrower is current on all contractual interest payments. (6) In April 2022, amortization began on the senior North Carolina loan, which had an outstanding principal balance of $68.8 million as of June 30, 2023. In December 2022, amortization began on the senior Pennsylvania loan, which had an outstanding principal balance of $29.2 million as of June 30, 2023. In January 2023, amortization began on the senior Georgia loan, which had an outstanding principal balance of $48.6 million as of June 30, 2023. In February 2023, amortization began on the senior diversified loan, which had an outstanding principal balance of $122.2 million as of June 30, 2023. The remainder of the loans in the Company’s portfolio are non-amortizing through their primary terms. (7) As of June 30, 2023, the senior Florida loan, which is collateralized by a mixed-use property, is in maturity default due to the failure of the borrower to repay the outstanding principal balance of the loan by the February 2023 maturity date. The Company is in the process of a consensual foreclosure of the property with legal title of the property expected to be acquired in the third quarter of 2023. Once legal title of the property is acquired, the Company will derecognize the senior Florida loan and recognize the mixed-use property as real estate owned. (8) In June 2023, the Company and the borrower entered into a modification agreement to, among other things, modify certain construction milestones. Upon the closing of the modification agreement, the senior New York loan was no longer in default. (9) In June 2023, the borrower exercised a 12-month extension option in accordance with the loan agreement, which extended the maturity date on the senior Florida loan to July 2024. (10) In March 2023, the Company and the borrower entered into a modification and extension agreement to, among other things, extend the maturity date on the senior North Carolina loan from March 2023 to March 2024. (11) Loan was on non-accrual status as of June 30, 2023 and the Unleveraged Effective Yield is not applicable. In June 2023, the Company and the borrower entered into a modification and extension agreement to, among other things, extend the maturity date on the senior Illinois loan from June 2023 to December 2023. For the three and six months ended June 30, 2023, the Company received $1.3 million and $2.5 million, respectively, of interest payments in cash on the senior Illinois loan that was recognized as a reduction to the carrying value of the loan and the borrower is current on all contractual interest payments. (12) As of June 30, 2023, the senior California loan, which is collateralized by a mixed-use property, is in maturity default due to the failure of the borrower to repay the outstanding principal balance of the loan by the March 2023 maturity date. (13) Loan was on non-accrual status as of June 30, 2023 and the Unleveraged Effective Yield is not applicable. For the six months ended June 30, 2023, the Company received $0.3 million of interest payments in cash on the senior Illinois loan that was recognized as a reduction to the carrying value of the loan. The senior Illinois loan is currently in default due to the failure of the borrower to make certain contractual reserve deposits by the May 2022 due date and due to the borrower not making its contractual interest payments due subsequent to the January 2023 interest payment date. (14) In June 2023, the borrower exercised a six-month extension option in accordance with the loan agreement, which extended the maturity date on the senior California loan to January 2024. (15) Loan was on non-accrual status as of June 30, 2023 and the Unleveraged Effective Yield is not applicable. In March 2023, the Company and the borrower entered into a modification and extension agreement to, among other things, extend the maturity date on the senior California loan from March 2023 to November 2023. For the three and six months ended June 30, 2023, the Company received $0.7 million and $1.2 million, respectively, of interest payments in cash on the senior California loan that was recognized as a reduction to the carrying value of the loan and the borrower is current on all contractual interest payments. (16) In February 2023, the Company and the borrower entered into a modification and extension agreement to, among other things, extend the maturity date on the senior California loan from March 2023 to September 2024. (17) In March 2023, the Company and the borrower entered into a modification and extension agreement to, among other things, extend the maturity date on the senior Washington loan from March 2023 to September 2023. The senior Washington loan is currently in default due to the borrower not making its contractual interest payments due subsequent to the March 2023 interest payment date. (18) Loan was on non-accrual status as of June 30, 2023 and the Unleveraged Effective Yield is not applicable. For the three and six months ended June 30, 2023, the Company received $0.6 million and $1.1 million, respectively, of interest payments in cash on the mezzanine New Jersey loan that was recognized as a reduction to the carrying value of the loan and the borrower is current on all contractual interest payments. The Company has made, and may continue to make, modifications to loans, including loans that are in default. Loan terms that may be modified include interest rates, required prepayments, asset release prices, maturity dates, covenants, principal amounts and other loan terms. The terms and conditions of each modification vary based on individual circumstances and will be determined on a case by case basis. The Company’s Manager monitors and evaluates each of the Company’s loans held for investment and is maintaining regular communications with borrowers and sponsors regarding the potential impacts of current macroeconomic conditions on the Company’s loans. For the six months ended June 30, 2023, the activity in the Company’s loan portfolio was as follows ($ in thousands): Balance at December 31, 2022 $ 2,264,008 Initial funding 47,000 Origination fees and discounts, net of costs (658) Additional funding 59,824 Amortizing payments (7,558) Loan payoffs (96,416) Loans sold to third parties (1) (41,489) Origination fee and discount accretion 3,389 Balance at June 30, 2023 $ 2,228,100 _________________________ (1) In January 2023, the Company closed the sale of a senior mortgage loan with outstanding principal of $14.3 million, which was collateralized by a residential property located in California, to a third party. At the time of the sale, the senior mortgage loan was in maturity default due to the failure of the borrower to repay the outstanding principal balance of the loan by the May 2021 maturity date. For the six months ended June 30, 2023, the Company recognized a realized loss of $5.6 million in the Company's consolidated statements of operations upon the sale of the senior mortgage loan as the carrying value exceeded the sale price of the loan. In addition, in April 2023, the Company closed the sale of a senior mortgage loan with outstanding principal of $27.2 million, which was collateralized by an office property located in Illinois, to a third party. At the time of the sale, the senior mortgage loan was in maturity default due to the failure of the borrower to repay the outstanding principal balance of the loan by the January 2023 maturity date. The Company did not recognize any unrealized gain or loss in the Company's consolidated statements of operations upon the sale of the senior mortgage loan as the carrying value was equal to the sale price of the loan. Except as described in the table above listing the Company’s loans held for investment portfolio, as of June 30, 2023, all loans held for investment were paying in accordance with their contractual terms. As of June 30, 2023, the Company had five loans held for investment on non-accrual status with a carrying value of $170.8 million. As of December 31, 2022, the Company had three loans held for investment on non-accrual status with a carrying value of $99.1 million.

CURRENT EXPECTED CREDIT LOSSES

CURRENT EXPECTED CREDIT LOSSES	6 Months Ended
	Jun. 30, 2023
Credit Loss [Abstract]
CURRENT EXPECTED CREDIT LOSSES	CURRENT EXPECTED CREDIT LOSSES The Company estimates its CECL Reserve primarily using a probability-weighted model that considers the likelihood of default and expected loss given default for each individual loan. Calculation of the CECL Reserve requires loan specific data, which includes capital senior to the Company when the Company is the subordinate lender, changes in net operating income, debt service coverage ratio, loan-to-value, occupancy, property type and geographic location. Estimating the CECL Reserve also requires significant judgment with respect to various factors, including (i) the appropriate historical loan loss reference data, (ii) the expected timing of loan repayments, (iii) calibration of the likelihood of default to reflect the risk characteristics of the Company’s floating rate loan portfolio and (iv) the Company’s current and future view of the macroeconomic environment. The Company may consider loan-specific qualitative factors on certain loans to estimate its CECL Reserve. In order to estimate the future expected loan losses relevant to the Company’s portfolio, the Company utilizes historical market loan loss data licensed from a third party data service. The third party’s loan database includes historical loss data for commercial mortgage-backed securities, or CMBS, issued dating back to 1998, which the Company believes is a reasonably comparable and available data set to its type of loans. The Company utilized macroeconomic data that reflects weak economic growth in the near term given current macroeconomic conditions; however, the actual financial impact on the Company of the current environment is highly uncertain. For periods beyond the reasonable and supportable forecast period, the Company reverts back to historical loss data. Management's current estimate of expected credit losses as of June 30, 2023 increased compared to the current estimate of expected credit losses as of March 31, 2023 primarily due to an increase in the CECL reserves for risk rated “4” and “5” loans in the portfolio as a result of the impact of the current macroeconomic environment, including high inflation and interest rates, and other loan specific factors partially offset by shorter average remaining loan term and loan repayments during the three months ended June 30, 2023. The CECL Reserve also takes into consideration the assumed impact of macroeconomic conditions on CRE properties and is not specific to any loan losses or impairments on the Company’s loans held for investment, unless the Company determines that a specific reserve is warranted for a select asset. As of June 30, 2023, the Company’s CECL Reserve for its loans held for investment portfolio is $112.5 million or 466 basis points of the Company’s total loans held for investment commitment balance of $2.4 billion and is bifurcated between the CECL reserve (contra-asset) related to outstanding balances on loans held for investment of $108.1 million and a liability for unfunded commitments of $4.3 million. The liability was based on the unfunded portion of the loan commitment over the full contractual period over which the Company is exposed to credit risk through a current obligation to extend credit. Management considered the likelihood that funding will occur, and if funded, the expected credit loss on the funded portion. During the six months ended June 30, 2023, the senior mortgage loan on an office property located in Illinois with a principal balance of $56.9 million and the senior mortgage loan on a hotel property located in Illinois with a principal balance of $35.0 million were both downgraded to a risk rating of “5.” As of June 30, 2023, both loans were assessed individually and the Company elected to assign specific CECL reserves of $42.1 million on the Illinois office loan and $5.9 million on the Illinois hotel loan. These specific CECL reserves for both loans were based on the Company’s estimate of proceeds available from the anticipated sale of the collateral property less the estimated cost to sell the property and the specific CECL reserves are included in the Company’s total CECL Reserve. Current Expected Credit Loss Reserve for Funded Loan Commitments Activity related to the CECL Reserve for outstanding balances on the Company’s loans held for investment as of and for the three and six months ended June 30, 2023 was as follows ($ in thousands): Balance at March 31, 2023 (1) $ 87,502 Provision for current expected credit losses 20,612 Write-offs — Recoveries — Balance at June 30, 2023 (1) $ 108,114 Balance at December 31, 2022 (1) $ 65,969 Provision for current expected credit losses 42,145 Write-offs — Recoveries — Balance at June 30, 2023 (1) $ 108,114 __________________________ (1) The CECL Reserve related to outstanding balances on loans held for investment is recorded within current expected credit loss reserve in the Company's consolidated balance sheets. Current Expected Credit Loss Reserve for Unfunded Loan Commitments Activity related to the CECL Reserve for unfunded commitments on the Company’s loans held for investment as of and for the three and six months ended June 30, 2023 was as follows ($ in thousands): Balance at March 31, 2023 (1) $ 4,825 Provision for current expected credit losses (485) Write-offs — Recoveries — Balance at June 30, 2023 (1) $ 4,340 Balance at December 31, 2022 (1) $ 5,339 Provision for current expected credit losses (999) Write-offs — Recoveries — Balance at June 30, 2023 (1) $ 4,340 __________________________ (1) The CECL Reserve related to unfunded commitments on loans held for investment is recorded within other liabilities in the Company's consolidated balance sheets. The Company continuously evaluates the credit quality of each loan by assessing the risk factors of each loan and assigning a risk rating based on a variety of factors. Risk factors include property type, geographic and local market dynamics, physical condition, leasing and tenant profile, projected cash flow, loan structure and exit plan, loan-to-value ratio, debt service coverage ratio, project sponsorship, and other factors deemed necessary. Based on a 5-point scale, the Company’s loans are rated “1” through “5,” from less risk to greater risk, which ratings are defined as follows: Ratings Definition 1 Very Low Risk 2 Low Risk 3 Medium Risk 4 High Risk/Potential for Loss: Asset performance is trailing underwritten expectations. Loan at risk of impairment without material improvement to performance 5 Impaired/Loss Likely: A loan that has a significantly increased probability of default and principal loss The risk ratings are primarily based on historical data as well as taking into account future economic conditions. As of June 30, 2023, the carrying value, excluding the CECL Reserve, of the Company’s loans held for investment within each risk rating by year of origination is as follows ($ in thousands): 2023 2022 2021 2020 2019 Prior Total Risk rating: 1 $ — $ 13,554 $ 5,592 $ — $ — $ — $ 19,146 2 — 35,004 276,653 — — 56,790 368,447 3 46,758 466,522 498,689 121,999 103,291 29,217 1,266,476 4 — 81,224 — 210,646 183,269 16,823 491,962 5 — — — — — 82,069 82,069 Total $ 46,758 $ 596,304 $ 780,934 $ 332,645 $ 286,560 $ 184,899 $ 2,228,100 Accrued Interest Receivable The Company elected not to measure a CECL Reserve on accrued interest receivable due to the Company’s policy of writing off uncollectible accrued interest receivable balances in a timely manner. As of June 30, 2023 and December 31, 2022, interest receivable of $14.6 million and $14.0 million, respectively, is included within other assets in the Company's consolidated balance sheets and is excluded from the carrying value of loans held for investment. If the Company were to have uncollectible accrued interest receivable, it generally would reverse accrued and unpaid interest against interest income and no longer accrue for these amounts.

REAL ESTATE OWNED

REAL ESTATE OWNED	6 Months Ended
	Jun. 30, 2023
Real Estate Owned [Abstract]
REAL ESTATE OWNED	REAL ESTATE OWNED On March 8, 2019, the Company acquired legal title to a hotel property located in New York through a deed in lieu of foreclosure. Prior to March 8, 2019, the hotel property collateralized a $38.6 million senior mortgage loan held by the Company that was in maturity default due to the failure of the borrower to repay the outstanding principal balance of the loan by the December 2018 maturity date. In conjunction with the deed in lieu of foreclosure, the Company derecognized the $38.6 million senior mortgage loan and recognized the hotel property as real estate owned. As of the date of the deed in lieu of foreclosure, the Company did not expect to complete a sale of the hotel property within the next twelve months and thus, the hotel property was considered held for use, and was carried at its estimated fair value at acquisition and was presented net of accumulated depreciation and impairment charges. The Company did not recognize any gain or loss on the derecognition of the senior mortgage loan as the fair value of the hotel property of $36.9 million and the net assets held at the hotel property of $1.7 million at acquisition approximated the $38.6 million carrying value of the senior mortgage loan. On November 8, 2021, the Company entered into a Purchase and Sale Agreement to sell the hotel property to a third party for $40.0 million and the sale closed on March 1, 2022. For the six months ended June 30, 2022, the Company recognized a $2.2 million gain on the sale of the hotel property as the net carrying value of the hotel property as of the March 1, 2022 sale date was lower than the net sales proceeds received by the Company. The gain on the sale of the hotel property is included within gain on sale of real estate owned in the Company’s consolidated statements of operations. In connection with the sale of the hotel property, the Company provided a senior mortgage loan to the buyer of the hotel property. The initial advance funded under such loan was $30.7 million, with up to another $25.0 million of additional loan proceeds to be available for future advances to cover a portion of the anticipated property renovation plan costs, provided certain conditions are satisfied. At closing, the buyer contributed $12.9 million of equity into the purchase. Additionally, the buyer is required to fund an additional $8.7 million of equity associated with the anticipated property renovation plan costs.

DEBT

DEBT	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
DEBT	DEBT Financing Agreements The Company borrows funds, as applicable in a given period, under the Wells Fargo Facility, the Citibank Facility, the CNB Facility, the MetLife Facility and the Morgan Stanley Facility (individually defined below and collectively, the “Secured Funding Agreements”), Notes Payable (as defined below) and the Secured Term Loan (as defined below). The Company refers to the Secured Funding Agreements, Notes Payable and the Secured Term Loan as the “Financing Agreements.” The outstanding balance of the Financing Agreements in the table below are presented gross of debt issuance costs. As of June 30, 2023 and December 31, 2022, the outstanding balances and total commitments under the Financing Agreements consisted of the following ($ in thousands): June 30, 2023 December 31, 2022 Outstanding Balance Total Outstanding Balance Total Secured Funding Agreements: Wells Fargo Facility $ 241,844 $ 450,000 (1) $ 270,798 $ 450,000 (1) Citibank Facility 236,240 325,000 236,240 325,000 CNB Facility — 75,000 — 75,000 MetLife Facility — 180,000 — 180,000 Morgan Stanley Facility 203,173 250,000 198,193 250,000 Subtotal $ 681,257 $ 1,280,000 $ 705,231 $ 1,280,000 Notes Payable $ 105,000 $ 105,000 $ 105,000 $ 105,000 Secured Term Loan $ 150,000 $ 150,000 $ 150,000 $ 150,000 Total $ 936,257 $ 1,535,000 $ 960,231 $ 1,535,000 ______________________________ (1) The maximum commitment for the Wells Fargo Facility (as defined below) may be increased to up to $500.0 million at the Company’s option, subject to the satisfaction of certain conditions, including payment of an upsize fee. Some of the Company’s Financing Agreements are collateralized by (i) assignments of specific loans, preferred equity or a pool of loans held for investment or loans held for sale owned by the Company, (ii) interests in the subordinated portion of the Company’s securitization debt, or (iii) interests in wholly-owned entity subsidiaries that hold the Company’s loans held for investment. The Company is the borrower or guarantor under each of the Financing Agreements. Generally, the Company partially offsets interest rate risk by matching the interest index of loans held for investment with the Secured Funding Agreements used to fund them. The Company’s Financing Agreements contain various affirmative and negative covenants, including negative pledges, and provisions regarding events of default that are normal and customary for similar financing arrangements. Wells Fargo Facility The Company is party to a master repurchase funding facility with Wells Fargo Bank, National Association (“Wells Fargo”) (the “Wells Fargo Facility”), which allows the Company to borrow up to $450.0 million. The maximum commitment may be increased to up to $500.0 million at the Company’s option, subject to the satisfaction of certain conditions, including payment of an upsize fee. Under the Wells Fargo Facility, the Company is permitted to sell, and later repurchase, certain qualifying senior commercial mortgage loans, A-Notes, pari-passu participations in commercial mortgage loans and mezzanine loans under certain circumstances, subject to available collateral approved by Wells Fargo in its sole discretion. The funding period of the Wells Fargo Facility expires on December 15, 2025. The initial maturity date of the Wells Fargo Facility is December 15, 2025, subject to two 12-month extensions, each of which may be exercised at the Company’s option, subject to the satisfaction of certain conditions, including payment of an extension fee, which, if both were exercised, would extend the maturity date of the Wells Fargo Facility to December 14, 2027. Advances under the Wells Fargo Facility accrue interest at a per annum rate equal to the sum of one-month SOFR plus a pricing margin range of 1.50% to 3.75%, subject to certain exceptions. Citibank Facility The Company is party to a $325.0 million master repurchase facility with Citibank, N.A. (“Citibank”) (the “Citibank Facility”). Under the Citibank Facility, the Company is permitted to sell and later repurchase certain qualifying senior commercial mortgage loans and A-Notes approved by Citibank in its sole discretion. The initial maturity date of the Citibank facility is January 13, 2025, subject to two 12-month extensions, each of which may be exercised at the Company’s option assuming no existing defaults under the Citibank Facility and applicable extension fees being paid, which, if both were exercised, would extend the maturity date of the Citibank Facility to January 13, 2027. Advances under the Citibank Facility accrue interest at a per annum rate equal to the sum of one-month SOFR plus an indicative pricing margin range of 1.50% to 2.10%, subject to certain exceptions. Prior to the January 2022 amendment, the Company incurred a non-utilization fee of 25 basis points per annum on the average daily available balance of the Citibank Facility to the extent less than 75% of the Citibank Facility was utilized. Subsequent to the January 2022 amendment, the Company incurs a non-utilization fee of 25 basis points per annum on the average daily positive difference between the maximum advances approved by Citibank and the actual advances outstanding on the Citibank Facility. For both the three and six months ended June 30, 2023, the Company did not incur a non-utilization fee. For both the three and six months ended June 30, 2022, the Company incurred a non-utilization fee of $11 thousand. The non-utilization fee is included within interest expense in the Company’s consolidated statements of operations. CNB Facility The Company is party to a $75.0 million secured revolving funding facility with City National Bank (the “CNB Facility”). The Company is permitted to borrow funds under the CNB Facility to finance investments and for other working capital and general corporate needs. In February 2023, the Company exercised a 12-month extension option on the CNB Facility to extend the maturity date to March 11, 2024. Advances under the CNB Facility accrue interest at a per annum rate equal to the sum of, at the Company’s option, either (a) SOFR (with a 0.35% floor) plus 2.65% or (b) a base rate (which is the highest of a prime rate, the federal funds rate plus 0.50%, or Daily Simple SOFR plus 1.00%) plus 1.00%; provided that in no event shall the interest rate be less than 2.65%. Unless at least 75% of the CNB Facility is used on average, unused commitments under the CNB Facility accrue non-utilization fees at the rate of 0.375% per annum. For the three and six months ended June 30, 2023, the Company incurred a non-utilization fee of $71 thousand and $141 thousand, respectively. For the three and six months ended June 30, 2022, the Company incurred a non-utilization fee of $70 thousand and $140 thousand, respectively. The non-utilization fee is included within interest expense in the Company’s consolidated statements of operations. MetLife Facility The Company is party to a $180.0 million revolving master repurchase facility with Metropolitan Life Insurance Company (“MetLife”) (the “MetLife Facility”), pursuant to which the Company may sell, and later repurchase, commercial mortgage loans meeting defined eligibility criteria which are approved by MetLife in its sole discretion. In June 2023, the Company exercised a 12-month extension option on the MetLife Facility to extend the maturity date to August 13, 2024. Advances under the MetLife Facility accrue interest at a per annum rate equal to the sum of one-month SOFR plus a spread of 2.50%, subject to certain exceptions. Unless at least 65% of the MetLife Facility is utilized, unused commitments under the MetLife Facility accrue non-utilization fees at the rate of 0.25% per annum on the average daily available balance. For the three and six months ended June 30, 2023, the Company incurred a non-utilization fee of $74 thousand and $147 thousand, respectively. For the three and six months ended June 30, 2022, the Company incurred a non-utilization fee of $61 thousand and $121 thousand, respectively. The non-utilization fee is included within interest expense in the Company’s consolidated statements of operations. Morgan Stanley Facility The Company is party to a $250.0 million master repurchase and securities contract with Morgan Stanley Bank, N.A. (“Morgan Stanley”) (the “Morgan Stanley Facility”). Under the Morgan Stanley Facility, the Company is permitted to sell, and later repurchase, certain qualifying commercial mortgage loans collateralized by retail, office, mixed-use, multifamily, industrial, hospitality, student housing or self-storage properties. Morgan Stanley may approve the mortgage loans that are subject to the Morgan Stanley Facility in its sole discretion. The initial maturity date of the Morgan Stanley Facility is January 16, 2024, subject to one 12-month extension, which may be exercised at the Company’s option, subject to the satisfaction of certain conditions, including payment of an extension fee, which, if exercised, would extend the maturity date of the Morgan Stanley Facility to January 16, 2025. Advances under the Morgan Stanley Facility generally accrue interest at a per annum rate equal to the sum of one-month SOFR plus a spread ranging from 1.75% to 2.25%, determined by Morgan Stanley, depending upon the mortgage loan sold to Morgan Stanley in the applicable transaction. See Note 17 included in these consolidated financial statements for a subsequent event related to the Morgan Stanley Facility. Notes Payable Certain of the Company’s subsidiaries were party to two separate non-recourse note agreements with the lenders referred to therein, consisting of (1) a $28.3 million note that was closed in June 2019, which was secured by a hotel property located in New York that was recognized as real estate owned in the Company’s consolidated balance sheets and (2) a $23.5 million note that was closed in November 2019, which was secured by a $34.6 million senior mortgage loan held by the Company on a multifamily property located in South Carolina. The $28.3 million note was repaid in full in conjunction with the sale of the hotel property that was recognized as real estate owned on March 1, 2022. See Note 5 for further details. Advances under the $28.3 million note accrued interest at a per annum rate equal to the sum of one-month LIBOR plus a spread of 3.00%. In June 2022, the Company repaid the $23.5 million note in full. Advances under the $23.5 million note accrued interest at a per annum rate equal to the sum of one-month LIBOR plus a spread of 3.75%. In July 2022, ACRC Lender CO LLC, a wholly owned subsidiary of the Company entered into a Credit and Security Agreement with Capital One, National Association, as administrative agent and collateral agent, and the lender referred to therein. The Credit and Security Agreement provides for a $105.0 million recourse note (together with the two non-recourse note agreements discussed above, the “Notes Payable”). The $105.0 million note is secured by a $133.0 million senior mortgage loan held by the Company on a multifamily property located in New York and is fully and unconditionally guaranteed by the Company pursuant to a Guaranty of Recourse Obligation. The initial maturity date of the $105.0 million note is July 28, 2025, subject to two 12-month extensions, each of which may be exercised at the Company’s option, subject to the satisfaction of certain conditions, including payment of an extension fee, which, if both were exercised, would extend the maturity date to July 28, 2027. The $105.0 million note accrues interest at a per annum rate equal to the sum of one-month SOFR plus a spread of 2.00%. As of June 30, 2023, the total outstanding principal balance of the note was $105.0 million. Secured Term Loan The Company and certain of its subsidiaries are party to a $150.0 million Credit and Guaranty Agreement with the lenders referred to therein and Cortland Capital Market Services LLC, as administrative agent and collateral agent for the lenders (the “Secured Term Loan”). The maturity date of the Secured Term Loan is November 12, 2026. Advances under the Secured Term Loan are subject to the following fixed rates: (i) 4.50% per annum until May 12, 2025, (ii) after May 12, 2025 through November 12, 2025, the interest rate increases 0.125% every three months and (iii) after November 12, 2025 through November 12, 2026, the interest rate increases 0.250% every three months. As of June 30, 2023, the total outstanding principal balance of the Secured Term Loan was $150.0 million. The total original issue discount on the Secured Term Loan was equal to 0.50% of the commitment amount and represents a discount to the debt cost to be amortized into interest expense using the effective interest method over the term of the Secured Term Loan. For both the three and six months ended June 30, 2023 and 2022, the estimated per annum effective interest rate of the Secured Term Loan, which is equal to the fixed interest rate plus the accretion of the original issue discount and associated costs, was 4.6%. A subsidiary of the Company was party to a secured borrowing arrangement related to a transferred loan that was closed in February 2020. In April 2019, the Company originated a $30.5 million loan on an office property located in North Carolina, which was bifurcated between a $24.4 million senior mortgage loan and a $6.1 million mezzanine loan. In February 2020, the Company transferred its interest in the $24.4 million senior mortgage loan to a third party and retained the $6.1 million mezzanine loan. The Company evaluated whether the transfer of the $24.4 million senior mortgage loan met the criteria in FASB ASC Topic 860, Transfers and Servicing , for treatment as a sale – legal isolation, ability of transferee to pledge or exchange the transferred assets without constraint and transfer of effective control – and determined that the transfer did not qualify as a sale and thus, was treated as a financing transaction. As such, the Company did not derecognize the $24.4 million senior mortgage loan asset and recorded a secured borrowing liability in the Company’s consolidated balance sheets. The initial maturity date of the $24.4 million secured borrowing was May 5, 2023, subject to one 12-month extension, which may have been exercised at the transferee’s option, which, if exercised, would have extended the maturity date to May 5, 2024. Advances

SECURED BORROWINGS

SECURED BORROWINGS	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
SECURED BORROWINGS	DEBT Financing Agreements The Company borrows funds, as applicable in a given period, under the Wells Fargo Facility, the Citibank Facility, the CNB Facility, the MetLife Facility and the Morgan Stanley Facility (individually defined below and collectively, the “Secured Funding Agreements”), Notes Payable (as defined below) and the Secured Term Loan (as defined below). The Company refers to the Secured Funding Agreements, Notes Payable and the Secured Term Loan as the “Financing Agreements.” The outstanding balance of the Financing Agreements in the table below are presented gross of debt issuance costs. As of June 30, 2023 and December 31, 2022, the outstanding balances and total commitments under the Financing Agreements consisted of the following ($ in thousands): June 30, 2023 December 31, 2022 Outstanding Balance Total Outstanding Balance Total Secured Funding Agreements: Wells Fargo Facility $ 241,844 $ 450,000 (1) $ 270,798 $ 450,000 (1) Citibank Facility 236,240 325,000 236,240 325,000 CNB Facility — 75,000 — 75,000 MetLife Facility — 180,000 — 180,000 Morgan Stanley Facility 203,173 250,000 198,193 250,000 Subtotal $ 681,257 $ 1,280,000 $ 705,231 $ 1,280,000 Notes Payable $ 105,000 $ 105,000 $ 105,000 $ 105,000 Secured Term Loan $ 150,000 $ 150,000 $ 150,000 $ 150,000 Total $ 936,257 $ 1,535,000 $ 960,231 $ 1,535,000 ______________________________ (1) The maximum commitment for the Wells Fargo Facility (as defined below) may be increased to up to $500.0 million at the Company’s option, subject to the satisfaction of certain conditions, including payment of an upsize fee. Some of the Company’s Financing Agreements are collateralized by (i) assignments of specific loans, preferred equity or a pool of loans held for investment or loans held for sale owned by the Company, (ii) interests in the subordinated portion of the Company’s securitization debt, or (iii) interests in wholly-owned entity subsidiaries that hold the Company’s loans held for investment. The Company is the borrower or guarantor under each of the Financing Agreements. Generally, the Company partially offsets interest rate risk by matching the interest index of loans held for investment with the Secured Funding Agreements used to fund them. The Company’s Financing Agreements contain various affirmative and negative covenants, including negative pledges, and provisions regarding events of default that are normal and customary for similar financing arrangements. Wells Fargo Facility The Company is party to a master repurchase funding facility with Wells Fargo Bank, National Association (“Wells Fargo”) (the “Wells Fargo Facility”), which allows the Company to borrow up to $450.0 million. The maximum commitment may be increased to up to $500.0 million at the Company’s option, subject to the satisfaction of certain conditions, including payment of an upsize fee. Under the Wells Fargo Facility, the Company is permitted to sell, and later repurchase, certain qualifying senior commercial mortgage loans, A-Notes, pari-passu participations in commercial mortgage loans and mezzanine loans under certain circumstances, subject to available collateral approved by Wells Fargo in its sole discretion. The funding period of the Wells Fargo Facility expires on December 15, 2025. The initial maturity date of the Wells Fargo Facility is December 15, 2025, subject to two 12-month extensions, each of which may be exercised at the Company’s option, subject to the satisfaction of certain conditions, including payment of an extension fee, which, if both were exercised, would extend the maturity date of the Wells Fargo Facility to December 14, 2027. Advances under the Wells Fargo Facility accrue interest at a per annum rate equal to the sum of one-month SOFR plus a pricing margin range of 1.50% to 3.75%, subject to certain exceptions. Citibank Facility The Company is party to a $325.0 million master repurchase facility with Citibank, N.A. (“Citibank”) (the “Citibank Facility”). Under the Citibank Facility, the Company is permitted to sell and later repurchase certain qualifying senior commercial mortgage loans and A-Notes approved by Citibank in its sole discretion. The initial maturity date of the Citibank facility is January 13, 2025, subject to two 12-month extensions, each of which may be exercised at the Company’s option assuming no existing defaults under the Citibank Facility and applicable extension fees being paid, which, if both were exercised, would extend the maturity date of the Citibank Facility to January 13, 2027. Advances under the Citibank Facility accrue interest at a per annum rate equal to the sum of one-month SOFR plus an indicative pricing margin range of 1.50% to 2.10%, subject to certain exceptions. Prior to the January 2022 amendment, the Company incurred a non-utilization fee of 25 basis points per annum on the average daily available balance of the Citibank Facility to the extent less than 75% of the Citibank Facility was utilized. Subsequent to the January 2022 amendment, the Company incurs a non-utilization fee of 25 basis points per annum on the average daily positive difference between the maximum advances approved by Citibank and the actual advances outstanding on the Citibank Facility. For both the three and six months ended June 30, 2023, the Company did not incur a non-utilization fee. For both the three and six months ended June 30, 2022, the Company incurred a non-utilization fee of $11 thousand. The non-utilization fee is included within interest expense in the Company’s consolidated statements of operations. CNB Facility The Company is party to a $75.0 million secured revolving funding facility with City National Bank (the “CNB Facility”). The Company is permitted to borrow funds under the CNB Facility to finance investments and for other working capital and general corporate needs. In February 2023, the Company exercised a 12-month extension option on the CNB Facility to extend the maturity date to March 11, 2024. Advances under the CNB Facility accrue interest at a per annum rate equal to the sum of, at the Company’s option, either (a) SOFR (with a 0.35% floor) plus 2.65% or (b) a base rate (which is the highest of a prime rate, the federal funds rate plus 0.50%, or Daily Simple SOFR plus 1.00%) plus 1.00%; provided that in no event shall the interest rate be less than 2.65%. Unless at least 75% of the CNB Facility is used on average, unused commitments under the CNB Facility accrue non-utilization fees at the rate of 0.375% per annum. For the three and six months ended June 30, 2023, the Company incurred a non-utilization fee of $71 thousand and $141 thousand, respectively. For the three and six months ended June 30, 2022, the Company incurred a non-utilization fee of $70 thousand and $140 thousand, respectively. The non-utilization fee is included within interest expense in the Company’s consolidated statements of operations. MetLife Facility The Company is party to a $180.0 million revolving master repurchase facility with Metropolitan Life Insurance Company (“MetLife”) (the “MetLife Facility”), pursuant to which the Company may sell, and later repurchase, commercial mortgage loans meeting defined eligibility criteria which are approved by MetLife in its sole discretion. In June 2023, the Company exercised a 12-month extension option on the MetLife Facility to extend the maturity date to August 13, 2024. Advances under the MetLife Facility accrue interest at a per annum rate equal to the sum of one-month SOFR plus a spread of 2.50%, subject to certain exceptions. Unless at least 65% of the MetLife Facility is utilized, unused commitments under the MetLife Facility accrue non-utilization fees at the rate of 0.25% per annum on the average daily available balance. For the three and six months ended June 30, 2023, the Company incurred a non-utilization fee of $74 thousand and $147 thousand, respectively. For the three and six months ended June 30, 2022, the Company incurred a non-utilization fee of $61 thousand and $121 thousand, respectively. The non-utilization fee is included within interest expense in the Company’s consolidated statements of operations. Morgan Stanley Facility The Company is party to a $250.0 million master repurchase and securities contract with Morgan Stanley Bank, N.A. (“Morgan Stanley”) (the “Morgan Stanley Facility”). Under the Morgan Stanley Facility, the Company is permitted to sell, and later repurchase, certain qualifying commercial mortgage loans collateralized by retail, office, mixed-use, multifamily, industrial, hospitality, student housing or self-storage properties. Morgan Stanley may approve the mortgage loans that are subject to the Morgan Stanley Facility in its sole discretion. The initial maturity date of the Morgan Stanley Facility is January 16, 2024, subject to one 12-month extension, which may be exercised at the Company’s option, subject to the satisfaction of certain conditions, including payment of an extension fee, which, if exercised, would extend the maturity date of the Morgan Stanley Facility to January 16, 2025. Advances under the Morgan Stanley Facility generally accrue interest at a per annum rate equal to the sum of one-month SOFR plus a spread ranging from 1.75% to 2.25%, determined by Morgan Stanley, depending upon the mortgage loan sold to Morgan Stanley in the applicable transaction. See Note 17 included in these consolidated financial statements for a subsequent event related to the Morgan Stanley Facility. Notes Payable Certain of the Company’s subsidiaries were party to two separate non-recourse note agreements with the lenders referred to therein, consisting of (1) a $28.3 million note that was closed in June 2019, which was secured by a hotel property located in New York that was recognized as real estate owned in the Company’s consolidated balance sheets and (2) a $23.5 million note that was closed in November 2019, which was secured by a $34.6 million senior mortgage loan held by the Company on a multifamily property located in South Carolina. The $28.3 million note was repaid in full in conjunction with the sale of the hotel property that was recognized as real estate owned on March 1, 2022. See Note 5 for further details. Advances under the $28.3 million note accrued interest at a per annum rate equal to the sum of one-month LIBOR plus a spread of 3.00%. In June 2022, the Company repaid the $23.5 million note in full. Advances under the $23.5 million note accrued interest at a per annum rate equal to the sum of one-month LIBOR plus a spread of 3.75%. In July 2022, ACRC Lender CO LLC, a wholly owned subsidiary of the Company entered into a Credit and Security Agreement with Capital One, National Association, as administrative agent and collateral agent, and the lender referred to therein. The Credit and Security Agreement provides for a $105.0 million recourse note (together with the two non-recourse note agreements discussed above, the “Notes Payable”). The $105.0 million note is secured by a $133.0 million senior mortgage loan held by the Company on a multifamily property located in New York and is fully and unconditionally guaranteed by the Company pursuant to a Guaranty of Recourse Obligation. The initial maturity date of the $105.0 million note is July 28, 2025, subject to two 12-month extensions, each of which may be exercised at the Company’s option, subject to the satisfaction of certain conditions, including payment of an extension fee, which, if both were exercised, would extend the maturity date to July 28, 2027. The $105.0 million note accrues interest at a per annum rate equal to the sum of one-month SOFR plus a spread of 2.00%. As of June 30, 2023, the total outstanding principal balance of the note was $105.0 million. Secured Term Loan The Company and certain of its subsidiaries are party to a $150.0 million Credit and Guaranty Agreement with the lenders referred to therein and Cortland Capital Market Services LLC, as administrative agent and collateral agent for the lenders (the “Secured Term Loan”). The maturity date of the Secured Term Loan is November 12, 2026. Advances under the Secured Term Loan are subject to the following fixed rates: (i) 4.50% per annum until May 12, 2025, (ii) after May 12, 2025 through November 12, 2025, the interest rate increases 0.125% every three months and (iii) after November 12, 2025 through November 12, 2026, the interest rate increases 0.250% every three months. As of June 30, 2023, the total outstanding principal balance of the Secured Term Loan was $150.0 million. The total original issue discount on the Secured Term Loan was equal to 0.50% of the commitment amount and represents a discount to the debt cost to be amortized into interest expense using the effective interest method over the term of the Secured Term Loan. For both the three and six months ended June 30, 2023 and 2022, the estimated per annum effective interest rate of the Secured Term Loan, which is equal to the fixed interest rate plus the accretion of the original issue discount and associated costs, was 4.6%. A subsidiary of the Company was party to a secured borrowing arrangement related to a transferred loan that was closed in February 2020. In April 2019, the Company originated a $30.5 million loan on an office property located in North Carolina, which was bifurcated between a $24.4 million senior mortgage loan and a $6.1 million mezzanine loan. In February 2020, the Company transferred its interest in the $24.4 million senior mortgage loan to a third party and retained the $6.1 million mezzanine loan. The Company evaluated whether the transfer of the $24.4 million senior mortgage loan met the criteria in FASB ASC Topic 860, Transfers and Servicing , for treatment as a sale – legal isolation, ability of transferee to pledge or exchange the transferred assets without constraint and transfer of effective control – and determined that the transfer did not qualify as a sale and thus, was treated as a financing transaction. As such, the Company did not derecognize the $24.4 million senior mortgage loan asset and recorded a secured borrowing liability in the Company’s consolidated balance sheets. The initial maturity date of the $24.4 million secured borrowing was May 5, 2023, subject to one 12-month extension, which may have been exercised at the transferee’s option, which, if exercised, would have extended the maturity date to May 5, 2024. Advances

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS	6 Months Ended
	Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE FINANCIAL INSTRUMENTS	DERIVATIVE FINANCIAL INSTRUMENTS The Company uses derivative financial instruments, which includes interest rate swaps and interest rate caps, on certain borrowing transactions to manage its net exposure to interest rate changes and to reduce its overall cost of borrowing. These derivatives may or may not qualify as cash flow hedges under the hedge accounting requirements of FASB ASC Topic 815, Derivatives and Hedging (“ASC 815”). Derivatives not designated as cash flow hedges are not speculative and are used to manage our exposure to interest rate movements. See Note 2 included in these consolidated financial statements for additional discussion of the accounting for designated and non-designated hedges. The use of derivative financial instruments involves certain risks, including the risk that the counterparties to these contractual arrangements do not perform as agreed. To mitigate this risk, the Company only enters into derivative financial instruments with counterparties that have appropriate credit ratings and are major financial institutions with which the Company and its affiliates may also have other financial relationships. The following tables detail our outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk as of June 30, 2023 and December 31, 2022 (notional amount in thousands): As of June 30, 2023 December 31, 2022 Interest Rate Derivatives Number of Instruments Notional Amount Rate (1) Index Weighted Average Maturity (Years) Number of Instruments Notional Amount Rate (1) Index Weighted Average Maturity (Years) Interest rate swaps 1 $30,000 0.2075% LIBOR (2) 0.5 1 $410,000 0.2075% LIBOR (2) 0.4 Interest rate caps 0 (3) — — — — 0 (3) — — — — _______________________________ (1) Represents fixed rate for interest rate swaps and strike rate for interest rate caps. (2) Subject to a 0.00% floor. (3) In March 2022, the Company re-calibrated its net exposure to interest rate changes by terminating its interest rate cap derivative, which had a notional amount of $170.0 million on the termination date and a strike rate of 0.50%. For the three months ended March 31, 2022, the Company recognized a $2.0 million realized gain within OCI in conjunction with the termination of the interest rate cap. In accordance with ASC 815, the realized gain is recognized within current earnings over the remaining original term of the interest rate cap derivative as it was designated as an effective hedge. For the three and six months ended June 30, 2023, the Company recognized a realized gain of $266 thousand and $723 thousand, respectively, and for the three and six months ended June 30, 2022, the Company recognized a realized gain of $264 thousand and $268 thousand, respectively, through a reduction in interest expense on the termination of the interest rate cap within current earnings. The following table summarizes the fair value of our derivative financial instruments ($ in thousands): Fair Value of Derivatives in an Asset Position (1) as of Fair Value of Derivatives in a Liability Position (2) as of June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 Derivatives designated as hedging instruments: Interest rate derivatives $ 712 $ 6,565 $ — $ — ____________________________ (1) Included in other assets in the Company’s consolidated balance sheets. (2) Included in other liabilities in the Company’s consolidated balance sheets.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES As of June 30, 2023, there were no contingencies recorded on the Company’s consolidated balance sheets as a result of such conditions, however, if global market conditions worsen, it could adversely affect the Company’s business, financial condition and results of operations. As of June 30, 2023 and December 31, 2022, the Company had the following commitments to fund various senior mortgage loans, subordinated debt investments, as well as preferred equity investments accounted for as loans held for investment ($ in thousands): As of June 30, 2023 December 31, 2022 Total commitments $ 2,413,134 $ 2,510,308 Less: funded commitments (2,252,070) (2,282,821) Total unfunded commitments $ 161,064 $ 227,487

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2023
Stockholders' Equity Note [Abstract]
STOCKHOLDERS' EQUITY	STOCKHOLDERS’ EQUITY Stock Repurchase Program On July 26, 2022, the Company’s Board of Directors approved a stock repurchase program of up to $50.0 million, which was expected to be in effect until July 26, 2023, or until the approved dollar amount had been used to repurchase shares (the “Repurchase Program”). On July 25, 2023, the Company’s Board of Directors renewed the Repurchase Program of up to $50.0 million, which is expected to be in effect until July 31, 2024, or until the approved dollar amount has been used to repurchase shares. Pursuant to the Repurchase Program, the Company may repurchase shares of its common stock in amounts, at prices and at such times as it deems appropriate, subject to market conditions and other considerations, including all applicable legal requirements. Repurchases may include purchases on the open market or privately negotiated transactions, under Rule 10b5-1 trading plans, under accelerated share repurchase programs, in tender offers and otherwise. The Repurchase Program does not obligate the Company to acquire any particular amount of shares of its common stock and may be modified or suspended at any time at its discretion. During the three months ended June 30, 2023, the Company repurchased a total of 535,965 shares of the Company's common stock in the open market for an aggregate purchase price of approximately $4.6 million, including expenses paid. The shares were repurchased at an average price of $8.58 per share, including expenses paid. Common Stock There were no shares of the Company’s common stock issued in public or private offerings for the three and six months ended June 30, 2023. See “Equity Incentive Plan” below for shares issued under the Equity Incentive Plan described below. Equity Incentive Plan On April 23, 2012, the Company adopted an equity incentive plan, which was amended and restated in June 2018 (as further amended, the “Amended and Restated 2012 Equity Incentive Plan”). In February 2022, the Company’s board of directors authorized, and in May 2022, the Company’s stockholders approved, the first amendment to the Amended and Restated 2012 Equity Incentive Plan, which among other things, increased the total number of shares of common stock the Company may grant thereunder to 2,490,000 shares. Pursuant to the Amended and Restated 2012 Equity Incentive Plan, as amended by the first amendment, the Company may grant awards consisting of restricted shares of the Company’s common stock, restricted stock units (“RSUs”) and/or other equity-based awards to the Company’s outside directors, employees of the Manager, officers, ACREM and other eligible awardees under the plan. Any restricted shares of the Company’s common stock and RSUs will be accounted for under FASB ASC Topic 718, Compensation—Stock Compensation , resulting in stock-based compensation expense equal to the grant date fair value of the underlying restricted shares of common stock or RSUs. Restricted stock and RSU grants generally vest ratably over a one The following tables summarize the (i) non-vested shares of restricted stock and RSUs and (ii) vesting schedule of shares of restricted stock and RSUs for the Company’s directors and officers and employees of the Manager as of June 30, 2023: Schedule of Non-Vested Share and Share Equivalents Restricted Stock Grants—Directors RSUs—Officers and Employees of the Manager Total Balance at December 31, 2022 16,137 832,472 848,609 Granted 64,266 — 64,266 Vested (13,218) (163,989) (177,207) Forfeited — (4,833) (4,833) Balance at June 30, 2023 67,185 663,650 730,835 Future Anticipated Vesting Schedule Restricted Stock Grants—Directors RSUs—Officers and Employees of the Manager Total 2023 32,970 4,285 37,255 2024 33,798 283,238 317,036 2025 417 231,931 232,348 2026 — 144,196 144,196 2027 — — — Total 67,185 663,650 730,835

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2023
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE The following information sets forth the computations of basic and diluted earnings (loss) per common share for the three and six months ended June 30, 2023 and 2022 ($ in thousands, except share and per share data): For the three months ended June 30, For the six months ended June 30, 2023 2022 2023 2022 Net income (loss) attributable to common stockholders $ (2,198) $ 10,031 $ (8,638) $ 26,231 Divided by: Basic weighted average shares of common stock outstanding: 54,347,204 50,562,559 54,468,752 48,892,754 Weighted average non-vested restricted stock and RSUs (1) — 436,946 — 443,513 Diluted weighted average shares of common stock outstanding: 54,347,204 50,999,505 54,468,752 49,336,267 Basic earnings (loss) per common share $ (0.04) $ 0.20 $ (0.16) $ 0.54 Diluted earnings (loss) per common share $ (0.04) $ 0.20 $ (0.16) $ 0.53 _______________________________

INCOME TAX

INCOME TAX	6 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
INCOME TAX	INCOME TAX The Company wholly owns ACRC Lender W TRS LLC, which is a taxable REIT subsidiary (“TRS”) formed to issue and hold certain loans intended for sale. The Company also wholly owns ACRC 2017-FL3 TRS LLC, which is a TRS formed to hold a portion of the FL3 CLO Securitization and FL4 CLO Securitization (as defined below), including the portion that generates excess inclusion income. Additionally, the Company wholly owns ACRC WM Tenant LLC, which is a TRS formed to lease from an affiliate the hotel property classified as real estate owned acquired on March 8, 2019. ACRC WM Tenant LLC engaged a third-party hotel management company to operate the hotel under a management contract prior to the sale of the hotel on March 1, 2022. The income tax provision for the Company and the TRSs consisted of the following for the three and six months ended June 30, 2023 and 2022 ($ in thousands): For the three months ended June 30, For the six months ended June 30, 2023 2022 2023 2022 Current $ 9 $ 8 $ 19 $ 24 Deferred — — — — Excise tax (55) 90 45 180 Total income tax expense (benefit), including excise tax $ (46) $ 98 $ 64 $ 204 For the three and six months ended June 30, 2023, the Company incurred an expense (benefit) of $(55) thousand and $45 thousand, respectively, and for three and six months ended June 30, 2022, the Company incurred an expense of $90 thousand and $180 thousand, respectively, for U.S. federal excise tax. Excise tax represents a 4% tax on the sum of a portion of the Company’s ordinary income and net capital gains not distributed during the calendar year (including any distribution declared in the fourth quarter and paid following January) plus any prior year shortfall. If it is determined that an excise tax liability exists for the current tax year, the Company will accrue excise tax on estimated excess taxable income as such taxable income is earned. The quarterly expense is calculated in accordance with applicable tax regulations. The TRSs recognize interest and penalties related to unrecognized tax benefits within income tax expense in the Company’s consolidated statements of operations. Accrued interest and penalties, if any, are included within other liabilities in the Company’s consolidated balance sheets. As of June 30, 2023, tax years 2019 through 2023 remain subject to examination by taxing authorities. The Company does not have any unrecognized tax benefits and the Company does not expect that to change in the next 12 months.

FAIR VALUE

FAIR VALUE	6 Months Ended
	Jun. 30, 2023
Fair Value Disclosures [Abstract]
FAIR VALUE	FAIR VALUE The Company follows FASB ASC Topic 820-10, Fair Value Measurement (“ASC 820-10”), which expands the application of fair value accounting. ASC 820-10 defines fair value, establishes a framework for measuring fair value in accordance with GAAP and expands disclosure requirements for fair value measurements. ASC 820-10 determines fair value to be the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. ASC 820-10 specifies a hierarchy of valuation techniques based on the inputs used in measuring fair value. In accordance with ASC 820-10, the inputs used to measure fair value are summarized in the three broad levels listed below: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants would use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. • Level 3—Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. GAAP requires disclosure of fair value information about financial and nonfinancial assets and liabilities, whether or not recognized in the financial statements, for which it is practical to estimate the value. In cases where quoted market prices are not available, fair values are based upon the application of discount rates to estimated future cash flows using market yields, or other valuation methodologies. Any changes to the valuation methodology will be reviewed by the Company’s management to ensure the changes are appropriate. The methods used may produce a fair value calculation that is not indicative of net realizable value or reflective of future fair values. Furthermore, while the Company anticipates that the valuation methods are appropriate and consistent with other market participants, the use of different methodologies, or assumptions, to determine the fair value of certain financial and nonfinancial assets and liabilities could result in a different estimate of fair value at the reporting date. The Company uses inputs that are current as of the measurement date, which may fall within periods of market dislocation, during which price transparency may be reduced. Recurring Fair Value Measurements Derivative Financial Instruments The Company is required to record derivative financial instruments at fair value on a recurring basis in accordance with GAAP. The fair value of interest rate derivatives was estimated using a third-party specialist, based on contractual cash flows and observable inputs comprising credit spreads. Available-for-Sale Debt Securities The Company designates investments in CRE debt securities as available-for-sale on the acquisition date of such CRE debt securities. The Company is required to record investments in available-for-sale debt securities at fair value on a recurring basis in accordance with GAAP. During the year ended December 31, 2022, the Company acquired three CRE debt securities for an aggregate purchase price of $27.9 million, which consisted of floating rate, investment grade rated debt securities that had a weighted average coupon of SOFR plus 2.47%. The Company’s available-for-sale debt securities have a contractual maturity greater than 10 years from the purchase date. As of both June 30, 2023 and December 31, 2022, the Company had three CRE debt security investments designated as available-for-sale debt securities. The following tables summarize the Company’s investments in available-for-sale debt securities as of June 30, 2023 and December 31, 2022 ($ in thousands): As of June 30, 2023 Face Amount Amortized Cost Unamortized Discount Unrealized Gain (Loss), Net Available-for-sale debt securities $ 28,000 $ 27,893 $ 107 $ 77 As of December 31, 2022 Face Amount Amortized Cost Unamortized Discount Unrealized Gain (Loss), Net Available-for-sale debt securities $ 28,000 $ 27,881 $ 119 $ 55 The fair value of available-for-sale debt securities was estimated using third-party broker quotes, which provide valuation estimates based upon contractual cash flows, observable inputs comprising credit spreads and market liquidity. The following tables summarize the financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2023 and December 31, 2022 ($ in thousands): As of June 30, 2023 Level 1 Level 2 Level 3 Total Financial assets: Interest rate derivatives $ — $ 712 $ — $ 712 Available-for-sale debt securities — 27,970 — 27,970 Financial liabilities: Interest rate derivatives $ — $ — $ — $ — As of December 31, 2022 Level 1 Level 2 Level 3 Total Financial assets: Interest rate derivatives $ — $ 6,565 $ — $ 6,565 Available-for-sale debt securities — 27,936 — 27,936 Financial liabilities: Interest rate derivatives $ — $ — $ — $ — As of June 30, 2023 and December 31, 2022, the Company did not have any nonfinancial assets or liabilities required to be recorded at fair value on a recurring basis. Nonrecurring Fair Value Measurements The Company was required to record real estate owned, a nonfinancial asset, at fair value on a nonrecurring basis in accordance with GAAP. Real estate owned consisted of a hotel property that was acquired by the Company on March 8, 2019 through a deed in lieu of foreclosure. See Note 5 included in these consolidated financial statements for more information on real estate owned. Real estate owned was recorded at fair value at acquisition using Level 3 inputs and is evaluated for indicators of impairment on a quarterly basis. Real estate owned was considered impaired when the sum of estimated future undiscounted cash flows expected to be generated by the real estate owned over the estimated remaining holding period is less than the carrying amount of such real estate owned. Cash flows include operating cash flows and anticipated capital proceeds generated by the real estate owned. An impairment charge is recorded equal to the excess of the carrying value of the real estate owned over the fair value. The fair value of the hotel property at acquisition was estimated using a third-party appraisal, which utilized standard industry valuation techniques such as the income and market approach. When determining the fair value of a hotel, certain assumptions are made including, but not limited to: (1) projected operating cash flows, including factors such as booking pace, growth rates, occupancy, daily room rates, hotel specific operating costs and future capital expenditures; and (2) projected cash flows from the eventual disposition of the hotel based upon the Company’s estimation of a hotel specific capitalization rate, hotel specific discount rates and comparable selling prices in the market. As of June 30, 2023 and December 31, 2022, the Company did not have any financial assets or liabilities or nonfinancial assets or liabilities required to be recorded at fair value on a nonrecurring basis. Financial Assets and Liabilities Not Measured at Fair Value As of June 30, 2023 and December 31, 2022, the carrying values and fair values of the Company’s financial assets and liabilities recorded at cost are as follows ($ in thousands): As of June 30, 2023 December 31, 2022 Level in Fair Value Hierarchy Carrying Value Fair Carrying Value Fair Financial assets: Loans held for investment 3 $ 2,228,100 $ 2,127,328 $ 2,264,008 $ 2,233,319 Financial liabilities: Secured funding agreements 2 $ 681,257 $ 681,257 $ 705,231 $ 705,231 Notes payable 2 104,559 105,000 104,460 103,635 Secured term loan 3 149,295 128,634 149,200 137,571 Collateralized loan obligation securitization debt (consolidated VIEs) 2 735,093 709,517 777,675 749,242 The carrying values of cash and cash equivalents, restricted cash, interest receivable, due to affiliate liability and accrued expenses, which are all categorized as Level 2 within the fair value hierarchy, approximate their fair values due to their short-term nature. Loans held for investment are recorded at cost, net of unamortized loan fees and origination costs. To determine the fair value of the collateral, the Company may employ different approaches depending on the type of collateral. The Company determined the fair value of loans held for investment based on a discounted cash flow methodology, taking into consideration various factors including capitalization rates, discount rates, leasing, occupancy rates, availability and cost of financing, exit plan, sponsorship, actions of other lenders, and comparable selling prices in the market. The Secured Funding Agreements and Notes Payable are recorded at outstanding principal, which is the Company’s best estimate of the fair value. The Company determined the fair value of the Secured Term Loan and collateralized loan obligation (“CLO”) securitization debt based on a discounted cash flow methodology, taking into consideration various factors including discount rates, actions of other lenders and comparable market quotes and recent trades for similar products.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2023
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS Management Agreement The Company is party to an Amended and Restated Management Agreement under which ACREM, subject to the supervision and oversight of the Company’s board of directors, is responsible for, among other duties, (a) performing all of the Company’s day-to-day functions, (b) determining the Company’s investment strategy and guidelines in conjunction with the Company’s board of directors, (c) sourcing, analyzing and executing investments, asset sales and financing, and (d) performing portfolio management duties. In addition, ACREM has an Investment Committee that oversees compliance with the Company’s investment strategy and guidelines, loans held for investment portfolio holdings and financing strategy. In exchange for its services, ACREM is entitled to receive a base management fee, an incentive fee and expense reimbursements. In addition, ACREM and its personnel may receive grants of equity-based awards pursuant to the Company’s Amended and Restated 2012 Equity Incentive Plan and a termination fee, if applicable. The base management fee is equal to 1.5% of the Company’s stockholders’ equity per annum, which is calculated and payable quarterly in arrears in cash. For purposes of calculating the base management fee, stockholders’ equity means: (a) the sum of (i) the net proceeds from all issuances of the Company’s equity securities since inception (allocated on a pro-rata daily basis for such issuances during the fiscal quarter of any such issuance), plus (ii) the Company’s retained earnings at the end of the most recently completed fiscal quarter determined in accordance with GAAP (without taking into account any non-cash equity compensation expense incurred in current or prior periods); less (b) (x) any amount that the Company has paid to repurchase the Company’s common stock since inception, (y) any unrealized gains and losses and other non-cash items that have impacted stockholders’ equity as reported in the Company’s consolidated financial statements prepared in accordance with GAAP, and (z) one-time events pursuant to changes in GAAP, and certain non-cash items not otherwise described above, in each case after discussions between ACREM and the Company’s independent directors and approval by a majority of the Company’s independent directors. As a result, the Company’s stockholders’ equity, for purposes of calculating the management fee, could be greater or less than the amount of stockholders’ equity shown in the Company’s consolidated financial statements. The incentive fee is an amount, not less than zero, equal to the difference between: (a) the product of (i) 20% and (ii) the difference between (A) the Company’s Core Earnings (as defined below) for the previous 12-month period, and (B) the product of (1) the weighted average of the issue price per share of the Company’s common stock of all of the Company’s public offerings of common stock multiplied by the weighted average number of all shares of common stock outstanding including any restricted shares of the Company’s common stock, RSUs, or any shares of the Company’s common stock not yet issued, but underlying other awards granted under the Company’s Amended and Restated 2012 Equity Incentive Plan (see Note 10 included in these consolidated financial statements) in the previous 12-month period, and (2) 8%; and (b) the sum of any incentive fees earned by ACREM with respect to the first three fiscal quarters of such previous 12-month period; provided, however, that no incentive fee is payable with respect to any fiscal quarter unless cumulative Core Earnings for the 12 most recently completed fiscal quarters is greater than zero. “Core Earnings” is defined in the Management Agreement as GAAP net income (loss) computed in accordance with GAAP, excluding non-cash equity compensation expense, the incentive fee, depreciation and amortization (to the extent that any of the Company’s target investments are structured as debt and the Company forecloses on any properties underlying such debt), any unrealized gains, losses or other non-cash items recorded in net income (loss) for the period, regardless of whether such items are included in other comprehensive income or loss, or in net income (loss), and one-time events pursuant to changes in GAAP and certain non-cash charges after discussions between ACREM and the Company’s independent directors and after approval by a majority of the Company’s independent directors. On April 25, 2022, the Company and ACREM entered into an amendment to the Management Agreement to (a) exclude $2.4 million of net income associated with the sale of the real estate owned property for the three months ended March 31, 2022 and to (b) include $2.0 million of net income associated with the Company’s gain on the termination of its interest rate cap derivative for the three months ended March 31, 2022, in each case, with respect to Core Earnings for the three months ended March 31, 2022. Core Earnings is defined in the Management Agreement and is used to calculate the incentive fees the Company pays to ACREM. For both the three and six months ended June 30, 2023, the Company incurred incentive fees of $334 thousand. For the three and six months ended June 30, 2022, the Company incurred incentive fees of $965 thousand and $1.3 million, respectively. The Company reimburses ACREM at cost for operating expenses that ACREM incurs on the Company’s behalf, including expenses relating to legal, financial, accounting, servicing, due diligence and other services, expenses in connection with the origination and financing of the Company’s investments, communications with the Company’s stockholders, information technology systems, software and data services used for the Company, travel, complying with legal and regulatory requirements, taxes, insurance maintained for the benefit of the Company as well as all other expenses actually incurred by ACREM that are reasonably necessary for the performance by ACREM of its duties and functions under the Management Agreement. Ares Management, from time to time, incurs fees, costs and expenses on behalf of more than one investment vehicle. To the extent such fees, costs and expenses are incurred for the account or benefit of more than one fund, each such investment vehicle, including the Company, will typically bear an allocable portion of any such fees, costs and expenses in proportion to the size of its investment in the activity or entity to which such expense relates (subject to the terms of each fund’s governing documents) or in such other manner as Ares Management considers fair and equitable under the circumstances, such as the relative fund size or capital available to be invested by such investment vehicles. Where an investment vehicle’s governing documents do not permit the payment of a particular expense, Ares Management will generally pay such investment vehicle’s allocable portion of such expense. In addition, the Company is responsible for its proportionate share of certain fees and expenses, including due diligence costs, as determined by ACREM and Ares Management, including legal, accounting and financial advisor fees and related costs, incurred in connection with evaluating and consummating investment opportunities, regardless of whether such transactions are ultimately consummated by the parties thereto. The Company will not reimburse ACREM for the salaries and other compensation of its personnel, except for the allocable share of the salaries and other compensation of the Company’s (a) Chief Financial Officer, based on the percentage of his time spent on the Company’s affairs and (b) other corporate finance, tax, accounting, internal audit, legal, risk management, operations, compliance and other non-investment professional personnel of ACREM or its affiliates who spend all or a portion of their time managing the Company’s affairs based on the percentage of their time spent on the Company’s affairs. The Company is also required to pay its pro-rata portion of rent, telephone, utilities, office furniture, equipment, machinery and other office, internal and overhead expenses of ACREM and its affiliates that are required for the Company’s operations. Certain of the Company’s subsidiaries, along with the Company’s lenders under certain of the Company’s Secured Funding Agreements, as well as under the CLO transaction have entered into various servicing agreements with ACREM’s subsidiary servicer, Ares Commercial Real Estate Servicer LLC (“ACRES”). The Company’s Manager will specially service, as needed, certain of the Company’s investments. Effective May 1, 2012, ACRES agreed that no servicing fees pursuant to these servicing agreements would be charged to the Company or its subsidiaries by ACRES or the Manager for so long as the Management Agreement remains in effect, but that ACRES will continue to receive reimbursement for overhead related to servicing and operational activities pursuant to the terms of the Management Agreement. The term of the Management Agreement ends on April 25, 2024, with automatic one-year renewal terms thereafter. Except under limited circumstances, upon a termination of the Management Agreement, the Company will pay ACREM a termination fee equal to three times the average annual base management fee and incentive fee received by ACREM during the 24-month period immediately preceding the most recently completed fiscal quarter prior to the date of termination, each as described above. The following table summarizes the related party costs incurred by the Company for the three and six months ended June 30, 2023 and 2022 and amounts payable to the Company’s Manager as of June 30, 2023 and December 31, 2022 ($ in thousands): Incurred Payable For the three months ended June 30, For the six months ended June 30, As of 2023 2022 2023 2022 June 30, 2023 December 31, 2022 Affiliate Payments Management fees $ 3,000 $ 2,801 $ 6,010 $ 5,417 $ 3,000 $ 3,026 Incentive fees 334 965 334 1,323 334 1,264 General and administrative expenses 1,109 796 1,842 1,631 1,313 1,232 Direct costs (1) 19 10 40 40 159 58 Total $ 4,462 $ 4,572 $ 8,226 $ 8,411 $ 4,806 $ 5,580 _______________________________ (1) For the three and six months ended June 30, 2023 and 2022, direct costs incurred are included within general and administrative expenses in the Company’s consolidated statements of operations. Investments in Loans From time to time, the Company may co-invest with other investment vehicles managed by Ares Management or its affiliates, including the Manager, and their portfolio companies, including by means of splitting investments, participating in investments or other means of syndication of investments. For such co-investments, the Company expects to act as the administrative agent for the holders of such investments provided that the Company maintains a majority of the aggregate investment. No fees will be received by the Company for performing such service. The Company will be responsible for its pro-rata share of costs and expenses for such co-investments, including due diligence costs for transactions which fail to close. The Company’s investment in such co-investments are made on a pari-passu basis with the other Ares managed investment vehicles and the Company is not obligated to provide, nor has it provided, any financial support to the other Ares managed investment vehicles. As such, the Company’s risk is limited to the carrying value of its investment and the Company recognizes only the carrying value of its investment in its consolidated balance sheets. As of June 30, 2023 and December 31, 2022, the total outstanding principal balance for co-investments held by the Company was $225.1 million and $213.7 million, respectively. Loan Purchases From Affiliate An affiliate of the Company’s Manager maintains a $200.0 million real estate debt warehouse investment vehicle (the “Ares Warehouse Vehicle”) that holds Ares Management originated commercial real estate loans, which are made available to purchase by other investment vehicles, including the Company and other Ares Management managed investment vehicles. From time to time, the Company may purchase loans from the Ares Warehouse Vehicle. The Company’s Manager will approve the purchase of such loans only on terms, including the consideration to be paid, that are determined by the Company’s Manager in good faith to be appropriate for the Company once the Company has sufficient liquidity. The Company is not obligated to purchase any loans originated by the Ares Warehouse Vehicle. In addition, from time to time, the Company may purchase loans, including participations in loans, from other Ares Management managed investment vehicles. Loans purchased by the Company from the Ares Warehouse Vehicle or other Ares Management managed investment vehicles are purchased at fair value as determined by an independent third-party valuation expert and are subject to approval by a majority of the

DIVIDENDS AND DISTRIBUTIONS

DIVIDENDS AND DISTRIBUTIONS	6 Months Ended
	Jun. 30, 2023
DIVIDENDS AND DISTRIBUTIONS
DIVIDENDS AND DISTRIBUTIONS	DIVIDENDS AND DISTRIBUTIONS The following table summarizes the Company’s dividends declared during the six months ended June 30, 2023 and 2022 ($ in thousands, except per share data): Date Declared Record Date Payment Date Per Share Amount Total Amount May 2, 2023 June 30, 2023 July 18, 2023 $ 0.35 (1) $ 19,180 February 15, 2023 March 31, 2023 April 18, 2023 0.35 (1) 19,346 Total cash dividends declared for the six months ended June 30, 2023 $ 0.70 $ 38,526 May 3, 2022 June 30, 2022 July 15, 2022 $ 0.35 (1) $ 19,198 February 15, 2022 March 31, 2022 April 14, 2022 0.35 (1) 16,740 Total cash dividends declared for the six months ended June 30, 2022 $ 0.70 $ 35,938 _______________________________

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
VARIABLE INTEREST ENTITIES	VARIABLE INTEREST ENTITIES Consolidated VIEs As discussed in Note 2, the Company evaluates all of its investments and other interests in entities for consolidation, including its investments in the CLO Securitizations (as defined below), which are considered to be variable interests in VIEs. CLO Securitizations On January 11, 2019, ACRE Commercial Mortgage 2017-FL3 Ltd. (the “FL3 Issuer”) and ACRE Commercial Mortgage 2017-FL3 LLC (the “FL3 Co-Issuer”), both wholly-owned indirect subsidiaries of the Company, entered into an Amended and Restated Indenture (the “FL3 Amended Indenture”) with Wells Fargo Bank, National Association, as advancing agent and note administrator, and Wilmington Trust, National Association, as trustee, which governs the approximately $504.1 million principal balance of secured floating rate notes (the “FL3 Notes”) issued by the FL3 Issuer and $52.9 million of preferred equity in the FL3 Issuer (the “FL3 CLO Securitization”). The FL3 Amended Indenture amends and restates, and replaces in its entirety, the indenture for the CLO securitization issued in March 2017, which governed the issuance of approximately $308.8 million principal balance of secured floating rate notes and $32.4 million of preferred equity in the FL3 Issuer. As of June 30, 2023, the FL3 Notes were collateralized by interests in a pool of 16 mortgage assets having a total principal balance of $469.1 million (the “FL3 Mortgage Assets”) that were closed by a wholly-owned subsidiary of the Company and approximately $87.9 million of receivables related to repayments of outstanding principal on previous mortgage assets. As of December 31, 2022, the FL3 Notes were collateralized by interests in a pool of 16 mortgage assets having a total principal balance of approximately $429.4 million that were closed by a wholly-owned subsidiary of the Company and approximately $127.6 million of receivables related to repayments of outstanding principal on previous mortgage assets. On April 13, 2021, the FL3 Issuer and the FL3 Co-Issuer entered into a First Supplement to Amended and Restated Indenture (the “2021 Amended Indenture”) with Wells Fargo Bank, National Association, as advancing agent and note administrator, and Wilmington Trust, National Association, as trustee, which governs the FL3 CLO Securitization. The purpose of the 2021 Amended Indenture was to, among other things, extend the reinvestment period to March 31, 2024. During the reinvestment period, the Company may direct the FL3 Issuer to acquire additional mortgage assets meeting applicable reinvestment criteria using the principal repayments from the FL3 Mortgage Assets, subject to the satisfaction of certain conditions, including receipt of a Rating Agency Confirmation and investor approval of the new mortgage assets. The contribution of the FL3 Mortgage Assets to the Issuer is governed by a Mortgage Asset Purchase Agreement between the Seller and the FL3 Issuer, and acknowledged by the Company solely for purposes of confirming its status as a REIT, in which the Seller made certain customary representations, warranties and covenants. In connection with the securitization, the FL3 Issuer and FL3 Co-Issuer offered and issued the following classes of Notes: Class A, Class A-S, Class B, Class C and Class D Notes (collectively, the “FL3 Offered Notes”) to a third party. The Company retained (through one of its wholly-owned subsidiaries) approximately $58.5 million of the FL3 Notes and all of the $52.9 million of preferred equity in the FL3 Issuer, which totaled $111.4 million. The Company, as the holder of the subordinated FL3 Notes and all of the preferred equity in the FL3 Issuer, has the obligation to absorb losses of the CLO, since the Company has a first loss position in the capital structure of the CLO. On January 28, 2021, ACRE Commercial Mortgage 2021-FL4 Ltd. (the “FL4 Issuer”) and ACRE Commercial Mortgage 2021-FL4 LLC (the “FL4 Co-Issuer”), both wholly owned indirect subsidiaries of the Company, entered into an Indenture (the “FL4 Indenture”) with ACRC Lender LLC, a wholly owned subsidiary of the Company (the “Seller”), as advancing agent, Wells Fargo Bank, National Association, as note administrator, and Wilmington Trust, National Association, as trustee, which governs the issuance of approximately $603.0 million principal balance secured floating rate notes (the “FL4 Notes”) and $64.3 million of preferred equity in the FL4 Issuer (the “FL4 CLO Securitization”). For U.S. federal income tax purposes, the FL4 Issuer and FL4 Co-Issuer are disregarded entities. As of June 30, 2023, the FL4 Notes were collateralized by interests in a pool of 11 mortgage assets having a total principal balance of approximately $417.3 million (the “FL4 Mortgage Assets”) that were closed by a wholly-owned subsidiary of the Company. As of December 31, 2022, the FL4 Notes were collateralized by interests in a pool of 12 mortgage assets having a total principal balance of approximately $458.3 million that were closed by a wholly-owned subsidiary of the Company and approximately $1.9 million of receivables related to repayments of outstanding principal on previous mortgage assets. During the period ending in April 2024 (the “Companion Participation Acquisition Period”), the FL4 Issuer may use certain principal proceeds from the FL4 Mortgage Assets to acquire additional funded pari-passu participations related to the FL4 Mortgage Assets that meet certain acquisition criteria. The sale of the FL4 Mortgage Assets to the FL4 Issuer is governed by a FL4 Mortgage Asset Purchase Agreement between the Seller and the FL4 Issuer, and acknowledged by the Company solely for purposes of confirming its status as a REIT, in which the Seller made certain customary representations, warranties and covenants. In connection with the FL4 CLO Securitization, the FL4 Issuer and FL4 Co-Issuer offered and issued the following classes of FL4 Notes to third party investors: Class A, Class A-S, Class B, Class C, Class D and Class E Notes (collectively, the “FL4 Offered Notes”). A wholly owned subsidiary of the Company retained approximately $62.5 million of the FL4 Notes and all of the $64.3 million of preferred equity in the FL4 Issuer, which totaled $126.8 million. The Company, as the holder of the subordinated FL4 Notes and all of the preferred equity in the FL4 Issuer, has the obligation to absorb losses of the FL4 CLO Securitization, since the Company has a first loss position in the capital structure of the FL4 CLO Securitization. During the three and six months ended June 30, 2023, the Company paid down $0.8 million and $42.9 million of the FL4 Offered Notes, respectively. The FL3 CLO Securitization and the FL4 CLO Securitization are collectively referred to as the “CLO Securitizations.” As the directing holder of the CLO Securitizations, the Company has the ability to direct activities that could significantly impact the CLO Securitizations’ economic performance. ACRES is designated as special servicer of the CLO Securitizations and has the power to direct activities during the loan workout process on defaulted and delinquent loans, which is the activity that most significantly impacts the CLO Securitizations’ economic performance. ACRES did not waive the special servicing fee, and the Company pays its overhead costs. If an unrelated third party had the right to unilaterally remove the special servicer, then the Company would not have the power to direct activities that most significantly impact the CLO Securitizations’ economic performance. In addition, there were no substantive kick-out rights of any unrelated third party to remove the special servicer without cause. The Company’s subsidiaries, as directing holders, have the ability to remove the special servicer without cause. Based on these factors, the Company is determined to be the primary beneficiary of each of the CLO Securitizations; thus, the CLO Securitizations are consolidated into the Company’s consolidated financial statements. The CLO Securitizations are consolidated in accordance with FASB ASC Topic 810 and are structured as pass through entities that receive principal and interest on the underlying collateral and distributes those payments to the note holders, as applicable. The assets and other instruments held by the CLO Securitizations are restricted and can only be used to fulfill the obligations of the respective CLO Securitizations. Additionally, the obligations of the CLO Securitizations do not have any recourse to the general credit of any other consolidated entities, nor to the Company as the primary beneficiary. The inclusion of the assets and liabilities of the CLO Securitizations of which the Company is deemed the primary beneficiary has no economic effect on the Company. The Company’s exposure to the obligations of the CLO Securitizations are generally limited to its investment in the entity. The Company is not obligated to provide, nor has it provided, any financial support for the consolidated structures. As such, the risk associated with the Company’s involvement in the CLO Securitizations are limited to the carrying value of its investment in each of the entities. As of June 30, 2023, the Company’s maximum risk of loss was $238.2 million, which represents the carrying value of its investments in the CLO Securitizations. Non-consolidated VIEs The Company evaluated its senior mortgage loan investment that is collateralized by a residential condominium property located in New York, and it was determined to be an interest in a VIE. However, the Company was not deemed to be the primary beneficiary. The Company’s exposure to the obligations of the VIE is generally limited to its investment and the Company is not obligated to provide, nor has it provided, any financial support to the VIE. As such, the risk associated with the Company’s involvement in the VIE is limited to the carrying value of its investment. As of June 30, 2023, the Company’s maximum risk of loss was $81.2 million, which represents the carrying value of its investment in the VIE.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2023
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS The Company’s management has evaluated subsequent events through the date of issuance of the consolidated financial statements included herein. There have been no subsequent events that occurred during such period that would require disclosure in this quarterly report on Form 10-Q or would be required to be recognized in the consolidated financial statements as of and for the six months ended June 30, 2023, except as disclosed below. On July 27, 2023, ACRC Lender MS LLC (“ACRC Lender MS”), a subsidiary of the Company, entered into an amendment to the Morgan Stanley Facility with Morgan Stanley Bank, N.A. The purpose of the amendment to the Morgan Stanley Facility was to, among other things, extend the initial maturity date of the Morgan Stanley Facility to July 16, 2025. The initial maturity date of the Morgan Stanley Facility is subject to one 12-month extension, which may be exercised at ACRC Lender MS's option, subject to the satisfaction of certain conditions and applicable extension fees being paid. The Company’s Board of Directors declared a regular cash dividend of $0.33 per common share for the third quarter of 2023. The third quarter 2023 cash dividend will be payable on October 17, 2023 to common stockholders of record as of September 29, 2023.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net income (loss) attributable to common stockholders	$ (2,198)	$ (6,439)	$ 2,909	$ 644	$ 10,031	$ 16,201	$ (8,638)	$ 26,231

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited consolidated interim financial statements have been prepared on the accrual basis of accounting in conformity with United States generally accepted accounting principles (“GAAP”) and include the accounts of the Company, the consolidated variable interest entities (“VIEs”) that the Company controls and of which the Company is the primary beneficiary, and the Company’s wholly-owned subsidiaries. The unaudited consolidated interim financial statements reflect all adjustments and reclassifications that, in the opinion of management, are necessary for the fair presentation of the Company’s results of operations and financial condition as of and for the periods presented. All intercompany balances and transactions have been eliminated. The unaudited consolidated interim financial statements are prepared in accordance with GAAP and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X. The current period’s results of operations will not necessarily be indicative of results for any other interim period or that ultimately may be achieved for the year ending December 31, 2023.
Use of Estimates in the Preparation of Financial Statements	Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Global macroeconomic conditions, including high inflation, changes to fiscal and monetary policy, high interest rates, potential market-wide liquidity problems, currency fluctuations, labor shortages and challenges in the supply chain, have the potential to negatively impact the Company and its borrowers. These current macroeconomic conditions may continue or aggravate and could cause the United States economy or other global economies to experience an economic slowdown or recession. We anticipate our business and operations could be materially adversely affected by a prolonged recession in the United States or other major global economy. The Company believes the estimates and assumptions underlying its consolidated financial statements are reasonable and supportable based on the information available as of June 30, 2023, however, uncertainty over the global economy and the Company’s business, makes any estimates and assumptions as of June 30, 2023 inherently less certain than they would be absent the current and potential impacts of current macroeconomic conditions. Actual results could differ from those estimates.
Variable Interest Entities	Variable Interest Entities The Company evaluates all of its interests in VIEs for consolidation. When the Company’s interests are determined to be variable interests, the Company assesses whether it is deemed to be the primary beneficiary of the VIE. The primary beneficiary of a VIE is required to consolidate the VIE. Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, Consolidation , defines the primary beneficiary as the party that has both (i) the power to direct the activities of the VIE that most significantly impact its economic performance, and (ii) the obligation to absorb losses and the right to receive benefits from the VIE which could be potentially significant. The Company considers its variable interests, as well as any variable interests of its related parties in making this determination. Where both of these factors are present, the Company is deemed to be the primary beneficiary and it consolidates the VIE. Where either one of these factors is not present, the Company is not the primary beneficiary and it does not consolidate the VIE. To assess whether the Company has the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, the Company considers all facts and circumstances, including its role in establishing the VIE and its ongoing rights and responsibilities. This assessment includes first, identifying the activities that most significantly impact the VIE’s economic performance; and second, identifying which party, if any, has power over those activities. In general, the parties that make the most significant decisions affecting the VIE or have the right to unilaterally remove those decision makers are deemed to have the power to direct the activities of a VIE. To assess whether the Company has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, the Company considers all of its economic interests, including debt and equity investments, servicing fees, and other arrangements deemed to be variable interests in the VIE. This assessment requires that the Company applies judgment in determining whether these interests, in the aggregate, are considered potentially significant to the VIE. Factors considered in assessing significance include: the design of the VIE, including its capitalization structure; subordination of interests; payment priority; relative share of interests held across various classes within the VIE’s capital structure; and the reasons why the interests are held by the Company. For VIEs of which the Company is determined to be the primary beneficiary, all of the underlying assets, liabilities, equity, revenue and expenses of the structures are consolidated into the Company’s consolidated financial statements. The Company performs an ongoing reassessment of: (1) whether any entities previously evaluated under the majority voting interest framework have become VIEs, based on certain events, and therefore are subject to the VIE consolidation framework, and (2) whether changes in the facts and circumstances regarding its involvement with a VIE cause the Company’s consolidation conclusion regarding the VIE to change. See Note 16 included in these consolidated financial statements for further discussion of the Company’s VIEs.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include funds on deposit with financial institutions, including demand deposits with financial institutions. Cash and short‑term investments with an original maturity of three months or less when acquired are considered cash and cash equivalents for the purpose of the consolidated balance sheets and statements of cash flows.
Loans Held for Investment	Loans Held for Investment The Company originates CRE debt and related instruments generally to be held for investment. Loans that are held for investment are carried at cost, net of unamortized loan fees and origination costs (the “carrying value”). Loans are generally collateralized by real estate. The extent of any credit deterioration associated with the performance and/or value of the underlying collateral property and the financial and operating capability of the borrower could impact the expected amounts received. The Company monitors performance of its loans held for investment portfolio under the following methodology: (1) borrower review, which analyzes the borrower’s ability to execute on its original business plan, reviews its financial condition, assesses pending litigation and considers its general level of responsiveness and cooperation; (2) economic review, which considers underlying collateral (i.e. leasing performance, unit sales and cash flow of the collateral and its ability to cover debt service, as well as the residual loan balance at maturity); (3) property review, which considers current environmental risks, changes in insurance costs or coverage, current site visibility, capital expenditures and market perception; and (4) market review, which analyzes the collateral from a supply and demand perspective of similar property types, as well as from a capital markets perspective. Such analyses are completed and reviewed by asset management and finance personnel who utilize various data sources, including periodic financial data such as property occupancy, tenant profile, rental rates, operating expenses, and the borrower’s exit plan, among other factors. Loans are generally placed on non-accrual status when principal or interest payments are past due 30 days or more or when there is reasonable doubt that principal or interest will be collected in full. Accrued and unpaid interest is generally reversed against interest income in the period the loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment regarding the borrower’s ability to make pending principal and interest payments. Non-accrual loans are restored to accrual status when past due principal and interest are paid and, in management’s judgment, are likely to remain current. The Company may make exceptions to placing a loan on non-accrual status if the loan has sufficient collateral value and is in the process of collection.
Current Expected Credit Losses	Current Expected Credit Losses FASB ASC Topic 326, Financial Instruments—Credit Losses (“ASC 326”) ,
Loans Held for Sale	Loans Held for Sale Although the Company generally holds its target investments as long-term investments, the Company occasionally classifies some of its investments as held for sale. Investments held for sale are carried at fair value within loans held for sale, at fair value in the Company’s consolidated balance sheets, with changes in fair value recorded through earnings.
Real Estate Owned	Real Estate Owned Real estate assets are carried at their estimated fair value at acquisition and are presented net of accumulated depreciation and impairment charges. The Company allocates the purchase price of acquired real estate assets based on the fair value of the acquired land, building, furniture, fixtures and equipment. Real estate assets are depreciated using the straight-line method over estimated useful lives of up to 40 years for buildings and improvements and up to 15 years for furniture, fixtures and equipment. Renovations and/or replacements that improve or extend the life of the real estate asset are capitalized and depreciated over their estimated useful lives. The cost of ordinary repairs and maintenance are expensed as incurred. Real estate assets are evaluated for indicators of impairment on a quarterly basis. Factors that the Company may consider in its impairment analysis include, among others: (1) significant underperformance relative to historical or anticipated operating results; (2) significant negative industry or economic trends; (3) costs necessary to extend the life or improve the real estate asset; (4) significant increase in competition; and (5) ability to hold and dispose of the real estate asset in the ordinary course of business. A real estate asset is considered impaired when the sum of estimated future undiscounted cash flows expected to be generated by the real estate asset over the estimated remaining holding period is less than the carrying amount of such real estate asset. Cash flows include operating cash flows and anticipated capital proceeds generated by the real estate asset. An impairment charge is recorded equal to the excess of the carrying value of the real estate asset over the fair value. When determining the fair value of a real estate asset, the Company makes certain assumptions including, but not limited to, consideration of projected operating cash flows, comparable selling prices and projected cash flows from the eventual disposition of the real estate asset based upon the Company’s estimate of a capitalization rate and discount rate. The Company reviews its real estate assets, from time to time, in order to determine whether to sell such assets. Real estate assets are classified as held for sale when the Company commits to a plan to sell the asset, when the asset is being actively marketed for sale at a reasonable price and the sale of the asset is probable and the transfer of the asset is expected to qualify for recognition as a completed sale within one year. Real estate assets that are held for sale are carried at the lower of the asset’s carrying amount or its fair value less costs to sell.
Available-for-Sale Debt Securities	Available-for-Sale Debt Securities The Company acquires debt securities that are collateralized by mortgages on CRE properties primarily for short-term cash management and investment purposes. On the acquisition date, the Company designates investments in CRE debt securities as available-for-sale. Investments in CRE debt securities that are classified as available-for-sale are carried at fair value. Unrealized holding gains and losses for available-for-sale debt securities are recorded each period in other comprehensive income (“OCI”). The Company uses a specific identification method when determining the cost of a debt security sold and the amount of unrealized gain or loss reclassified from accumulated other comprehensive income (loss) into earnings. Available-for-sale debt securities that are in an unrealized loss position are evaluated on a quarterly basis to determine whether declines in the fair value below the amortized cost basis qualify as other than temporary impairment (“OTTI”). The OTTI assessment is performed at the individual security level. In assessing whether the entire amortized cost basis of each security will be recovered, the Company will compare the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis of the security, the entire amortized cost basis of the security will not be recovered and an OTTI shall be considered to have occurred.
Debt Issuance Costs	Debt Issuance Costs Debt issuance costs under the Company’s indebtedness are capitalized and amortized over the term of the respective debt instrument. Unamortized debt issuance costs are expensed when the associated debt is repaid prior to maturity. Debt issuance costs related to debt securitizations are capitalized and amortized over the term of the underlying loans using the effective interest method. When an underlying loan is prepaid in a debt securitization and the outstanding principal balance of the securitization debt is reduced, the related unamortized debt issuance costs are charged to expense based on a pro‑rata share of the debt issuance costs being allocated to the specific loans that were prepaid. Amortization of debt issuance costs is included within interest expense, except as noted below, in the Company’s consolidated statements of operations while the unamortized balance on the (i) Secured Funding Agreements (each individually defined in Note 6 included in these consolidated financial statements) is included within other assets and (ii) Notes Payable, the Secured Term Loan (each defined in Note 6 included in these consolidated financial statements) and secured borrowings (described in Note 7 included in these consolidated financial statements) and debt securitizations are each included as a reduction to the carrying amount of the liability in the Company’s consolidated balance sheets. Amortization of debt issuance costs for the note payable on the hotel property that was recognized as real estate owned in the Company’s consolidated balance sheets (see Note 6 included in these consolidated financial statements for additional information on the note payable) is included within expenses from real estate owned in the Company’s consolidated statements of operations.
Derivative Financial Instruments	Derivative Financial Instruments Derivative financial instruments are classified as either other assets (gain positions) or other liabilities (loss positions) in the Company’s consolidated balance sheets at fair value. These amounts may be offset to the extent that there is a legal right to offset and if elected by management. On the date the Company enters into a derivative contract, the Company designates each contract as a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability, or cash flow hedge, or as a derivative instrument not to be designated as a hedging derivative, or non-designated hedge. For all derivatives other than those designated as non-designated hedges, the Company formally documents the hedge relationships and designation at the contract’s inception. This documentation includes the identification of the hedging instruments and the hedged items, its risk management objectives, strategy for undertaking the hedge transaction and an evaluation of the effectiveness of its hedged transaction. The Company performs a formal assessment on a quarterly basis on whether the derivative designated in each hedging relationship is expected to be, and has been, highly effective in offsetting changes in the value or cash flows of the hedged items. Changes in the fair value of derivative contracts are recorded each period in either current earnings or OCI, depending on whether the derivative is designated as part of a hedge transaction and, if so, the type of hedge transaction. For derivatives that are designated as cash flow hedges, the effective portion of the unrealized gains or losses on these contracts is recorded in OCI. If it is determined that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued and the changes in fair value of the instrument are included in current earnings prospectively. The Company does not enter into derivatives for trading or speculative purposes.
Revenue Recognition	Revenue Recognition Interest income is accrued based on the outstanding principal amount and the contractual terms of each loan or debt security. For loans held for investment, the origination fees, contractual exit fees and direct loan origination costs are also recognized in interest income over the initial loan term as a yield adjustment using the effective interest method. For available-for-sale debt securities, premiums or discounts are amortized or accreted into interest income as a yield adjustment using the effective interest method. Revenue from real estate owned represents revenue associated with the operations of a hotel property classified as real estate owned that was sold in March 2022. Revenue from the operation of the hotel property was recognized when guestrooms were occupied, services had been rendered or fees had been earned. Revenues were recorded net of any discounts and sales and other taxes collected from customers. Revenues consisted of room sales, food and beverage sales and other hotel revenues.
Net Interest Margin and Interest Expense	Net Interest Margin and Interest Expense    Net interest margin in the Company’s consolidated statements of operations serves to measure the performance of the Company’s loans and debt securities as compared to its use of debt leverage. The Company includes interest income from its loans and debt securities and interest expense related to its Secured Funding Agreements, Notes Payable, securitization debt, the Secured Term Loan (each individually defined in Note 6 included in these consolidated financial statements) and secured borrowings (described in Note 7 included in these consolidated financial statements) in net interest margin.
Comprehensive Income	Comprehensive Income Comprehensive income consists of net income and OCI that are excluded from net income.
Recent Accounting Pronouncements	Recent Accounting Pronouncements The Company considers the applicability and impact of all accounting standard updates (“ASU”) issued by the FASB. ASUs were assessed and determined either to be not applicable or expected to have minimal impact on its unaudited consolidated financial statements.

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Schedule of interest expense	For the three and six months ended June 30, 2023 and 2022, interest expense is comprised of the following ($ in thousands): For the three months ended June 30, For the six months ended June 30, 2023 2022 2023 2022 Secured funding agreements $ 13,081 $ 6,342 $ 25,392 $ 11,469 Notes payable (1) 1,904 531 3,663 984 Securitization debt 12,428 5,591 24,034 9,942 Secured term loan 1,754 1,752 3,488 3,484 Secured borrowings — 296 — 588 Other (2) (2,216) (1,037) (6,627) (979) Interest expense $ 26,951 $ 13,475 $ 49,950 $ 25,488 ____________________________ (1) Excludes interest expense on the $28.3 million note payable, which was secured by a hotel property that was recognized as real estate owned in the Company’s consolidated balance sheet (see Note 6 included in these consolidated financial statements for additional information on the note payable). Interest expense on the $28.3 million note payable is included within expenses from real estate owned in the Company’s consolidated statements of operations.

LOANS HELD FOR INVESTMENT (Tabl

LOANS HELD FOR INVESTMENT (Tables)	6 Months Ended
	Jun. 30, 2023
Receivables [Abstract]
Schedule of loans held for investments	The Company’s investments in loans held for investment are accounted for at amortized cost. The following tables summarize the Company’s loans held for investment as of June 30, 2023 and December 31, 2022 ($ in thousands): As of June 30, 2023 Carrying Amount (1) Outstanding Principal (1) Weighted Average Unleveraged Effective Yield Weighted Average Remaining Life (Years) Senior mortgage loans $ 2,190,809 $ 2,212,972 8.8 % (2) 9.5 % (3) 1.3 Subordinated debt and preferred equity investments 37,291 39,098 8.0 % (2) 15.1 % (3) 2.3 Total loans held for investment portfolio $ 2,228,100 $ 2,252,070 8.7 % (2) 9.5 % (3) 1.3 As of December 31, 2022 Carrying Amount (1) Outstanding Principal (1) Weighted Average Unleveraged Effective Yield Weighted Average Remaining Life (Years) Senior mortgage loans $ 2,225,725 $ 2,243,818 8.4 % (2) 8.8 % (3) 1.3 Subordinated debt and preferred equity investments 38,283 39,003 14.0 % (2) 14.0 % (3) 2.8 Total loans held for investment portfolio $ 2,264,008 $ 2,282,821 8.5 % (2) 8.9 % (3) 1.4 ______________________________ (1) The difference between the Carrying Amount and the Outstanding Principal amount of the loans held for investment consists of unamortized purchase discount, deferred loan fees and loan origination costs. (2) Unleveraged Effective Yield is the compounded effective rate of return that would be earned over the life of the investment based on the contractual interest rate (adjusted for any deferred loan fees, costs, premiums or discounts) and assumes no dispositions, early prepayments or defaults. The total Weighted Average Unleveraged Effective Yield is calculated based on the average of Unleveraged Effective Yield of all loans held by the Company as of June 30, 2023 and December 31, 2022 as weighted by the outstanding principal balance of each loan.
Schedule of current investment portfolio	A more detailed listing of the Company’s loans held for investment portfolio based on information available as of June 30, 2023 is as follows ($ in millions, except percentages): Loan Type Location Outstanding Principal (1) Carrying Amount (1) Interest Rate Unleveraged Effective Yield (2) Maturity Date (3) Payment Terms (4) Senior Mortgage Loans: Office IL $156.8 $154.0 (5) 7.4% (5) Mar 2025 (5) I/O Multifamily NY 132.2 131.1 S+3.90% 9.5% Jun 2025 I/O Office Diversified 122.2 122.0 S+3.75% 9.1% Jan 2024 P/I (6) Industrial IL 100.1 99.8 S+4.65% 10.2% May 2024 I/O Multifamily TX 100.0 99.3 S+3.50% 9.5% Jul 2025 I/O Mixed-use FL 82.7 82.7 S+4.25% 9.5% Feb 2023 (7) I/O Residential Condominium NY 81.4 81.2 S+8.95% 15.9% Oct 2023 (8) I/O Office AZ 79.1 78.7 S+3.61% 9.2% Oct 2024 I/O Mixed-use NY 75.7 75.4 S+3.75% 9.3% Jul 2024 I/O Residential Condominium FL 75.0 75.0 S+5.35% 11.0% Jul 2024 (9) I/O Office NY 72.2 71.7 S+3.95% 9.5% Aug 2025 I/O Office NC 68.8 68.7 S+4.35% 9.8% Mar 2024 (10) P/I (6) Multifamily TX 68.2 67.9 S+2.95% 8.5% Dec 2024 I/O Office NC 68.0 67.7 S+3.65% 9.2% Aug 2024 I/O Multifamily/Office SC 67.0 66.9 S+3.00% 8.4% Nov 2024 I/O Office IL 56.9 52.5 S+3.95% —% (11) Dec 2023 (11) I/O Office IL 56.0 55.6 S+4.25% 9.9% Jan 2025 I/O Office GA 48.6 48.5 S+3.15% 8.6% Dec 2023 P/I (6) Industrial MA 47.0 46.8 S+2.90% 8.2% Jun 2028 I/O Hotel CA 42.0 41.6 S+4.20% 9.9% Mar 2025 I/O Hotel NY 39.5 39.0 S+4.40% 9.9% Mar 2026 I/O Office MA 38.1 37.5 S+3.75% 9.5% Apr 2025 I/O Mixed-use CA 37.9 37.9 S+4.10% 9.3% Mar 2023 (12) I/O Mixed-use TX 35.3 35.2 S+3.85% 9.3% Sep 2024 I/O Hotel IL 35.0 29.6 S+4.00% —% (13) May 2024 I/O Student Housing CA 34.0 34.0 S+3.95% 9.1% Jan 2024 (14) I/O Office CA 33.2 31.9 S+3.45% —% (15) Nov 2023 (15) I/O Multifamily CA 31.7 31.5 S+3.00% 8.4% Dec 2025 I/O Multifamily PA 29.2 29.2 S+4.00% 9.4% Dec 2023 P/I (6) Industrial NJ 27.8 27.7 S+3.85% 9.6% May 2024 I/O Industrial FL 25.5 25.4 S+3.00% 8.4% Dec 2025 I/O Multifamily WA 23.1 23.0 S+3.00% 8.3% Nov 2025 I/O Office CA 22.9 22.8 S+3.50% 8.9% Nov 2023 I/O Multifamily TX 22.6 22.4 S+2.60% 8.1% Oct 2024 I/O Industrial CA 19.6 19.5 S+3.85% 9.3% Sep 2024 (16) I/O Student Housing AL 19.5 19.4 S+3.95% 9.5% May 2024 I/O Multifamily WA 18.7 18.7 S+3.10% 8.8% Sep 2023 (17) I/O Self Storage PA 18.2 18.1 S+3.00% 8.4% Dec 2025 I/O Self Storage NJ 17.6 17.4 S+2.90% 8.8% Apr 2025 I/O Self Storage WA 11.5 11.4 S+2.90% 8.8% Mar 2025 I/O Industrial TX 10.0 9.9 S+5.35% 10.9% Dec 2024 I/O Self Storage MA 8.5 8.5 S+3.00% 8.3% Dec 2024 I/O Self Storage TX 8.0 8.0 S+3.00% 8.4% Aug 2024 I/O Self Storage MA 7.7 7.7 S+3.00% 8.3% Nov 2024 I/O Self Storage MA 6.7 6.7 S+3.00% 8.4% Oct 2024 I/O Self Storage MO 6.5 6.5 S+3.10% 8.4% Dec 2023 I/O Industrial TN 6.4 6.4 S+5.60% 11.1% Nov 2024 I/O Self Storage NJ 5.9 5.9 S+3.00% 8.6% Jul 2024 I/O Self Storage IL 5.6 5.6 S+3.10% 8.6% Dec 2023 I/O Industrial FL 4.0 4.0 S+5.75% 11.3% Mar 2025 I/O Self Storage TX 2.9 2.9 S+3.00% 8.3% Sep 2024 I/O Subordinated Debt and Preferred Multifamily SC 20.6 20.5 S+9.53% 15.1% Sep 2025 I/O Office NJ 18.5 16.8 12.00% —% (18) Jan 2026 I/O Total/Weighted Average $2,252.1 $2,228.1 8.7% _________________________ (1) The difference between the Carrying Amount and the Outstanding Principal amount of the loans held for investment consists of unamortized purchase discount, deferred loan fees and loan origination costs. For the loans held for investment that represent co-investments with other investment vehicles managed by Ares Management (see Note 14 included in these consolidated financial statements for additional information on co-investments), only the portion of Carrying Amount and Outstanding Principal held by the Company is reflected. (2) Unleveraged Effective Yield is the compounded effective rate of return that would be earned over the life of the investment based on the contractual interest rate (adjusted for any deferred loan fees, costs, premiums or discounts) and assumes no dispositions, early prepayments or defaults. Unleveraged Effective Yield for each loan is calculated based on SOFR as of June 30, 2023 or the SOFR floor, as applicable. The total Weighted Average Unleveraged Effective Yield is calculated based on the average of Unleveraged Effective Yield of all loans held by the Company as of June 30, 2023 as weighted by the outstanding principal balance of each loan. (3) Certain loans are subject to contractual extension options that generally vary between one and two 12-month extensions and may be subject to performance based or other conditions as stipulated in the loan agreement. Actual maturities may differ from contractual maturities stated herein as certain borrowers may have the right to prepay with or without paying a prepayment penalty. The Company may also extend contractual maturities and amend other terms of the loans in connection with loan modifications. (4) I/O = interest only, P/I = principal and interest. (5) The Illinois loan is structured as both a senior and mezzanine loan with the Company holding both positions. The senior position has a per annum interest rate of S + 2.25% and the mezzanine position has a fixed per annum interest rate of 10.00%. The mezzanine position of this loan, which had an outstanding principal balance of $42.8 million as of June 30, 2023, was on non-accrual status as of June 30, 2023 and therefore, the Unleveraged Effective Yield presented is for the senior position only as the mezzanine position is non-interest accruing. In March 2023, the Company and the borrower entered into a modification and extension agreement to, among other things, extend the maturity date on the Illinois loan from March 2023 to March 2025. For the three and six months ended June 30, 2023, the Company received $1.7 million of interest payments and other fees in cash on the mezzanine position of the Illinois loan that was recognized as a reduction to the carrying value of the loan and the borrower is current on all contractual interest payments. (6) In April 2022, amortization began on the senior North Carolina loan, which had an outstanding principal balance of $68.8 million as of June 30, 2023. In December 2022, amortization began on the senior Pennsylvania loan, which had an outstanding principal balance of $29.2 million as of June 30, 2023. In January 2023, amortization began on the senior Georgia loan, which had an outstanding principal balance of $48.6 million as of June 30, 2023. In February 2023, amortization began on the senior diversified loan, which had an outstanding principal balance of $122.2 million as of June 30, 2023. The remainder of the loans in the Company’s portfolio are non-amortizing through their primary terms. (7) As of June 30, 2023, the senior Florida loan, which is collateralized by a mixed-use property, is in maturity default due to the failure of the borrower to repay the outstanding principal balance of the loan by the February 2023 maturity date. The Company is in the process of a consensual foreclosure of the property with legal title of the property expected to be acquired in the third quarter of 2023. Once legal title of the property is acquired, the Company will derecognize the senior Florida loan and recognize the mixed-use property as real estate owned. (8) In June 2023, the Company and the borrower entered into a modification agreement to, among other things, modify certain construction milestones. Upon the closing of the modification agreement, the senior New York loan was no longer in default. (9) In June 2023, the borrower exercised a 12-month extension option in accordance with the loan agreement, which extended the maturity date on the senior Florida loan to July 2024. (10) In March 2023, the Company and the borrower entered into a modification and extension agreement to, among other things, extend the maturity date on the senior North Carolina loan from March 2023 to March 2024. (11) Loan was on non-accrual status as of June 30, 2023 and the Unleveraged Effective Yield is not applicable. In June 2023, the Company and the borrower entered into a modification and extension agreement to, among other things, extend the maturity date on the senior Illinois loan from June 2023 to December 2023. For the three and six months ended June 30, 2023, the Company received $1.3 million and $2.5 million, respectively, of interest payments in cash on the senior Illinois loan that was recognized as a reduction to the carrying value of the loan and the borrower is current on all contractual interest payments. (12) As of June 30, 2023, the senior California loan, which is collateralized by a mixed-use property, is in maturity default due to the failure of the borrower to repay the outstanding principal balance of the loan by the March 2023 maturity date. (13) Loan was on non-accrual status as of June 30, 2023 and the Unleveraged Effective Yield is not applicable. For the six months ended June 30, 2023, the Company received $0.3 million of interest payments in cash on the senior Illinois loan that was recognized as a reduction to the carrying value of the loan. The senior Illinois loan is currently in default due to the failure of the borrower to make certain contractual reserve deposits by the May 2022 due date and due to the borrower not making its contractual interest payments due subsequent to the January 2023 interest payment date. (14) In June 2023, the borrower exercised a six-month extension option in accordance with the loan agreement, which extended the maturity date on the senior California loan to January 2024. (15) Loan was on non-accrual status as of June 30, 2023 and the Unleveraged Effective Yield is not applicable. In March 2023, the Company and the borrower entered into a modification and extension agreement to, among other things, extend the maturity date on the senior California loan from March 2023 to November 2023. For the three and six months ended June 30, 2023, the Company received $0.7 million and $1.2 million, respectively, of interest payments in cash on the senior California loan that was recognized as a reduction to the carrying value of the loan and the borrower is current on all contractual interest payments. (16) In February 2023, the Company and the borrower entered into a modification and extension agreement to, among other things, extend the maturity date on the senior California loan from March 2023 to September 2024. (17) In March 2023, the Company and the borrower entered into a modification and extension agreement to, among other things, extend the maturity date on the senior Washington loan from March 2023 to September 2023. The senior Washington loan is currently in default due to the borrower not making its contractual interest payments due subsequent to the March 2023 interest payment date. (18) Loan was on non-accrual status as of June 30, 2023 and the Unleveraged Effective Yield is not applicable. For the three and six months ended June 30, 2023, the Company received $0.6 million and $1.1 million, respectively, of interest payments in cash on the mezzanine New Jersey loan that was recognized as a reduction to the carrying value of the loan and the borrower is current on all contractual interest payments.
Schedule of activity in loan portfolio	For the six months ended June 30, 2023, the activity in the Company’s loan portfolio was as follows ($ in thousands): Balance at December 31, 2022 $ 2,264,008 Initial funding 47,000 Origination fees and discounts, net of costs (658) Additional funding 59,824 Amortizing payments (7,558) Loan payoffs (96,416) Loans sold to third parties (1) (41,489) Origination fee and discount accretion 3,389 Balance at June 30, 2023 $ 2,228,100 _________________________

CURRENT EXPECTED CREDIT LOSSES

CURRENT EXPECTED CREDIT LOSSES (Tables)	6 Months Ended
	Jun. 30, 2023
Credit Loss [Abstract]
Schedule of financing receivable, allowance for credit loss	Activity related to the CECL Reserve for outstanding balances on the Company’s loans held for investment as of and for the three and six months ended June 30, 2023 was as follows ($ in thousands): Balance at March 31, 2023 (1) $ 87,502 Provision for current expected credit losses 20,612 Write-offs — Recoveries — Balance at June 30, 2023 (1) $ 108,114 Balance at December 31, 2022 (1) $ 65,969 Provision for current expected credit losses 42,145 Write-offs — Recoveries — Balance at June 30, 2023 (1) $ 108,114 __________________________ (1) The CECL Reserve related to outstanding balances on loans held for investment is recorded within current expected credit loss reserve in the Company's consolidated balance sheets. Current Expected Credit Loss Reserve for Unfunded Loan Commitments Activity related to the CECL Reserve for unfunded commitments on the Company’s loans held for investment as of and for the three and six months ended June 30, 2023 was as follows ($ in thousands): Balance at March 31, 2023 (1) $ 4,825 Provision for current expected credit losses (485) Write-offs — Recoveries — Balance at June 30, 2023 (1) $ 4,340 Balance at December 31, 2022 (1) $ 5,339 Provision for current expected credit losses (999) Write-offs — Recoveries — Balance at June 30, 2023 (1) $ 4,340 __________________________ (1) The CECL Reserve related to unfunded commitments on loans held for investment is recorded within other liabilities in the Company's consolidated balance sheets.
Schedule of company loan risk definitions	Based on a 5-point scale, the Company’s loans are rated “1” through “5,” from less risk to greater risk, which ratings are defined as follows: Ratings Definition 1 Very Low Risk 2 Low Risk 3 Medium Risk 4 High Risk/Potential for Loss: Asset performance is trailing underwritten expectations. Loan at risk of impairment without material improvement to performance 5 Impaired/Loss Likely: A loan that has a significantly increased probability of default and principal loss
Schedule of financing receivable credit quality indicators	As of June 30, 2023, the carrying value, excluding the CECL Reserve, of the Company’s loans held for investment within each risk rating by year of origination is as follows ($ in thousands): 2023 2022 2021 2020 2019 Prior Total Risk rating: 1 $ — $ 13,554 $ 5,592 $ — $ — $ — $ 19,146 2 — 35,004 276,653 — — 56,790 368,447 3 46,758 466,522 498,689 121,999 103,291 29,217 1,266,476 4 — 81,224 — 210,646 183,269 16,823 491,962 5 — — — — — 82,069 82,069 Total $ 46,758 $ 596,304 $ 780,934 $ 332,645 $ 286,560 $ 184,899 $ 2,228,100

DEBT (Tables)

DEBT (Tables)	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
Schedule of outstanding balances and total commitments under financing agreements	As of June 30, 2023 and December 31, 2022, the outstanding balances and total commitments under the Financing Agreements consisted of the following ($ in thousands): June 30, 2023 December 31, 2022 Outstanding Balance Total Outstanding Balance Total Secured Funding Agreements: Wells Fargo Facility $ 241,844 $ 450,000 (1) $ 270,798 $ 450,000 (1) Citibank Facility 236,240 325,000 236,240 325,000 CNB Facility — 75,000 — 75,000 MetLife Facility — 180,000 — 180,000 Morgan Stanley Facility 203,173 250,000 198,193 250,000 Subtotal $ 681,257 $ 1,280,000 $ 705,231 $ 1,280,000 Notes Payable $ 105,000 $ 105,000 $ 105,000 $ 105,000 Secured Term Loan $ 150,000 $ 150,000 $ 150,000 $ 150,000 Total $ 936,257 $ 1,535,000 $ 960,231 $ 1,535,000 ______________________________ (1) The maximum commitment for the Wells Fargo Facility (as defined below) may be increased to up to $500.0 million at the Company’s option, subject to the satisfaction of certain conditions, including payment of an upsize fee.

DERIVATIVE FINANCIAL INSTRUME_2

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	6 Months Ended
	Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of interest rate derivatives	The following tables detail our outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk as of June 30, 2023 and December 31, 2022 (notional amount in thousands): As of June 30, 2023 December 31, 2022 Interest Rate Derivatives Number of Instruments Notional Amount Rate (1) Index Weighted Average Maturity (Years) Number of Instruments Notional Amount Rate (1) Index Weighted Average Maturity (Years) Interest rate swaps 1 $30,000 0.2075% LIBOR (2) 0.5 1 $410,000 0.2075% LIBOR (2) 0.4 Interest rate caps 0 (3) — — — — 0 (3) — — — — _______________________________ (1) Represents fixed rate for interest rate swaps and strike rate for interest rate caps. (2) Subject to a 0.00% floor. (3) In March 2022, the Company re-calibrated its net exposure to interest rate changes by terminating its interest rate cap derivative, which had a notional amount of $170.0 million on the termination date and a strike rate of 0.50%. For the three months ended March 31, 2022, the Company recognized a $2.0 million realized gain within OCI in conjunction with the termination of the interest rate cap. In accordance with ASC 815, the realized gain is recognized within current earnings over the remaining original term of the interest rate cap derivative as it was designated as an effective hedge. For the three and six months ended June 30, 2023, the Company recognized a realized gain of $266 thousand and $723 thousand, respectively, and for the three and six months ended June 30, 2022, the Company recognized a realized gain of $264 thousand and $268 thousand, respectively, through a reduction in interest expense on the termination of the interest rate cap within current earnings.
Schedule of derivative assets at fair value	The following table summarizes the fair value of our derivative financial instruments ($ in thousands): Fair Value of Derivatives in an Asset Position (1) as of Fair Value of Derivatives in a Liability Position (2) as of June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 Derivatives designated as hedging instruments: Interest rate derivatives $ 712 $ 6,565 $ — $ — ____________________________ (1) Included in other assets in the Company’s consolidated balance sheets. (2) Included in other liabilities in the Company’s consolidated balance sheets.

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Schedule of loan commitments	As of June 30, 2023 and December 31, 2022, the Company had the following commitments to fund various senior mortgage loans, subordinated debt investments, as well as preferred equity investments accounted for as loans held for investment ($ in thousands): As of June 30, 2023 December 31, 2022 Total commitments $ 2,413,134 $ 2,510,308 Less: funded commitments (2,252,070) (2,282,821) Total unfunded commitments $ 161,064 $ 227,487

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	6 Months Ended
	Jun. 30, 2023
Stockholders' Equity Note [Abstract]
Schedule of restricted stock award activity	The following tables summarize the (i) non-vested shares of restricted stock and RSUs and (ii) vesting schedule of shares of restricted stock and RSUs for the Company’s directors and officers and employees of the Manager as of June 30, 2023: Schedule of Non-Vested Share and Share Equivalents Restricted Stock Grants—Directors RSUs—Officers and Employees of the Manager Total Balance at December 31, 2022 16,137 832,472 848,609 Granted 64,266 — 64,266 Vested (13,218) (163,989) (177,207) Forfeited — (4,833) (4,833) Balance at June 30, 2023 67,185 663,650 730,835
Schedule of future anticipated vesting schedule of restricted stock awards	Future Anticipated Vesting Schedule Restricted Stock Grants—Directors RSUs—Officers and Employees of the Manager Total 2023 32,970 4,285 37,255 2024 33,798 283,238 317,036 2025 417 231,931 232,348 2026 — 144,196 144,196 2027 — — — Total 67,185 663,650 730,835

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2023
Earnings Per Share [Abstract]
Schedule of computations of basic and diluted earnings (loss) per share	The following information sets forth the computations of basic and diluted earnings (loss) per common share for the three and six months ended June 30, 2023 and 2022 ($ in thousands, except share and per share data): For the three months ended June 30, For the six months ended June 30, 2023 2022 2023 2022 Net income (loss) attributable to common stockholders $ (2,198) $ 10,031 $ (8,638) $ 26,231 Divided by: Basic weighted average shares of common stock outstanding: 54,347,204 50,562,559 54,468,752 48,892,754 Weighted average non-vested restricted stock and RSUs (1) — 436,946 — 443,513 Diluted weighted average shares of common stock outstanding: 54,347,204 50,999,505 54,468,752 49,336,267 Basic earnings (loss) per common share $ (0.04) $ 0.20 $ (0.16) $ 0.54 Diluted earnings (loss) per common share $ (0.04) $ 0.20 $ (0.16) $ 0.53 _______________________________

INCOME TAX (Tables)

INCOME TAX (Tables)	6 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Schedule of components of the TRS's income tax provision	The income tax provision for the Company and the TRSs consisted of the following for the three and six months ended June 30, 2023 and 2022 ($ in thousands): For the three months ended June 30, For the six months ended June 30, 2023 2022 2023 2022 Current $ 9 $ 8 $ 19 $ 24 Deferred — — — — Excise tax (55) 90 45 180 Total income tax expense (benefit), including excise tax $ (46) $ 98 $ 64 $ 204

FAIR VALUE (Tables)

FAIR VALUE (Tables)	6 Months Ended
	Jun. 30, 2023
Fair Value Disclosures [Abstract]
Schedule of debt securities, available-for-sale	The following tables summarize the Company’s investments in available-for-sale debt securities as of June 30, 2023 and December 31, 2022 ($ in thousands): As of June 30, 2023 Face Amount Amortized Cost Unamortized Discount Unrealized Gain (Loss), Net Available-for-sale debt securities $ 28,000 $ 27,893 $ 107 $ 77 As of December 31, 2022 Face Amount Amortized Cost Unamortized Discount Unrealized Gain (Loss), Net Available-for-sale debt securities $ 28,000 $ 27,881 $ 119 $ 55
Schedule of fair value, assets measured on recurring basis	The following tables summarize the financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2023 and December 31, 2022 ($ in thousands): As of June 30, 2023 Level 1 Level 2 Level 3 Total Financial assets: Interest rate derivatives $ — $ 712 $ — $ 712 Available-for-sale debt securities — 27,970 — 27,970 Financial liabilities: Interest rate derivatives $ — $ — $ — $ — As of December 31, 2022 Level 1 Level 2 Level 3 Total Financial assets: Interest rate derivatives $ — $ 6,565 $ — $ 6,565 Available-for-sale debt securities — 27,936 — 27,936 Financial liabilities: Interest rate derivatives $ — $ — $ — $ —
Schedule of fair value, liabilities measured on recurring basis	The following tables summarize the financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2023 and December 31, 2022 ($ in thousands): As of June 30, 2023 Level 1 Level 2 Level 3 Total Financial assets: Interest rate derivatives $ — $ 712 $ — $ 712 Available-for-sale debt securities — 27,970 — 27,970 Financial liabilities: Interest rate derivatives $ — $ — $ — $ — As of December 31, 2022 Level 1 Level 2 Level 3 Total Financial assets: Interest rate derivatives $ — $ 6,565 $ — $ 6,565 Available-for-sale debt securities — 27,936 — 27,936 Financial liabilities: Interest rate derivatives $ — $ — $ — $ —
Schedule of carrying value and estimated fair value of the company's financial instruments not carried at fair value on the consolidated balance sheet	As of June 30, 2023 and December 31, 2022, the carrying values and fair values of the Company’s financial assets and liabilities recorded at cost are as follows ($ in thousands): As of June 30, 2023 December 31, 2022 Level in Fair Value Hierarchy Carrying Value Fair Carrying Value Fair Financial assets: Loans held for investment 3 $ 2,228,100 $ 2,127,328 $ 2,264,008 $ 2,233,319 Financial liabilities: Secured funding agreements 2 $ 681,257 $ 681,257 $ 705,231 $ 705,231 Notes payable 2 104,559 105,000 104,460 103,635 Secured term loan 3 149,295 128,634 149,200 137,571 Collateralized loan obligation securitization debt (consolidated VIEs) 2 735,093 709,517 777,675 749,242

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	6 Months Ended
	Jun. 30, 2023
Related Party Transactions [Abstract]
Schedule of related-party costs incurred by the company and amounts payable to the manager	The following table summarizes the related party costs incurred by the Company for the three and six months ended June 30, 2023 and 2022 and amounts payable to the Company’s Manager as of June 30, 2023 and December 31, 2022 ($ in thousands): Incurred Payable For the three months ended June 30, For the six months ended June 30, As of 2023 2022 2023 2022 June 30, 2023 December 31, 2022 Affiliate Payments Management fees $ 3,000 $ 2,801 $ 6,010 $ 5,417 $ 3,000 $ 3,026 Incentive fees 334 965 334 1,323 334 1,264 General and administrative expenses 1,109 796 1,842 1,631 1,313 1,232 Direct costs (1) 19 10 40 40 159 58 Total $ 4,462 $ 4,572 $ 8,226 $ 8,411 $ 4,806 $ 5,580 _______________________________

DIVIDENDS AND DISTRIBUTIONS (Ta

DIVIDENDS AND DISTRIBUTIONS (Tables)	6 Months Ended
	Jun. 30, 2023
DIVIDENDS AND DISTRIBUTIONS
Schedule of the company's dividends declared	The following table summarizes the Company’s dividends declared during the six months ended June 30, 2023 and 2022 ($ in thousands, except per share data): Date Declared Record Date Payment Date Per Share Amount Total Amount May 2, 2023 June 30, 2023 July 18, 2023 $ 0.35 (1) $ 19,180 February 15, 2023 March 31, 2023 April 18, 2023 0.35 (1) 19,346 Total cash dividends declared for the six months ended June 30, 2023 $ 0.70 $ 38,526 May 3, 2022 June 30, 2022 July 15, 2022 $ 0.35 (1) $ 19,198 February 15, 2022 March 31, 2022 April 14, 2022 0.35 (1) 16,740 Total cash dividends declared for the six months ended June 30, 2022 $ 0.70 $ 35,938 _______________________________

ORGANIZATION (Details)

ORGANIZATION (Details)	6 Months Ended
	Jun. 30, 2023 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments	1

SIGNIFICANT ACCOUNTING POLICI_4

SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details)	Jun. 30, 2023
Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Useful life (in years)	15 years
Maximum | Buildings and improvements
Property, Plant and Equipment [Line Items]
Useful life (in years)	40 years

SIGNIFICANT ACCOUNTING POLICI_5

SIGNIFICANT ACCOUNTING POLICIES - Schedule of Interest Expense (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Debt Instrument [Line Items]
Interest expense		$ 26,951	$ 13,475	$ 49,950	$ 25,488
Secured funding agreements
Debt Instrument [Line Items]
Interest expense		13,081	6,342	25,392	11,469
Notes payable
Debt Instrument [Line Items]
Interest expense		1,904	531	3,663	984
Securitization debt
Debt Instrument [Line Items]
Interest expense		12,428	5,591	24,034	9,942
Secured term loan
Debt Instrument [Line Items]
Interest expense		1,754	1,752	3,488	3,484
Secured borrowings
Debt Instrument [Line Items]
Interest expense		0	296	0	588
Other
Debt Instrument [Line Items]
Other		$ (2,216)	$ (1,037)	$ (6,627)	$ (979)
Notes Payable, Due June 10, 2024 | Notes payable | New York
Debt Instrument [Line Items]
Interest expense from real estate owned	$ 28,300

LOANS HELD FOR INVESTMENT - Nar

LOANS HELD FOR INVESTMENT - Narrative (Details) $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($) loan	Dec. 31, 2022 USD ($) loan
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans originated or co-originated | loan	53
Number of loans repaid or sold, since inception | loan	158
Total commitment	$ 2,500
Loans held for investment	2,300
Amount funded	106.8
Amount of repayments	$ 97.2
Number of loans sold | loan	2
Principal amount outstanding	$ 41.5
Percentage of loans held for investment having LIBOR floors	71.20%
Weighted average floor (as a percent)	1.12%
Impact of COVID-19
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of loans in non-accrual status | loan	5	3
Financing receivable, non-accrual	$ 170.8	$ 99.1

LOANS HELD FOR INVESTMENT - Loa

LOANS HELD FOR INVESTMENT - Loans held for Investments (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loans held for investment	$ 2,228,100	$ 2,264,008
Outstanding principal	$ 2,252,070	$ 2,282,821
Weighted Average Unleveraged Effective Yield, Including Non-accrual Loans	8.70%	8.50%
Weighted Average Unleveraged Effective Yield, Excluding Non-accrual Loans	9.50%	8.90%
Weighted Average Remaining Life (Years)	1 year 3 months 18 days	1 year 4 months 24 days
Senior mortgage loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loans held for investment	$ 2,190,809	$ 2,225,725
Outstanding principal	$ 2,212,972	$ 2,243,818
Weighted Average Unleveraged Effective Yield, Including Non-accrual Loans	8.80%	8.40%
Weighted Average Unleveraged Effective Yield, Excluding Non-accrual Loans	9.50%	8.80%
Weighted Average Remaining Life (Years)	1 year 3 months 18 days	1 year 3 months 18 days
Subordinated debt and preferred equity investments
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loans held for investment	$ 37,291	$ 38,283
Outstanding principal	$ 39,098	$ 39,003
Weighted Average Unleveraged Effective Yield, Including Non-accrual Loans	8%	14%
Weighted Average Unleveraged Effective Yield, Excluding Non-accrual Loans	15.10%	14%
Weighted Average Remaining Life (Years)	2 years 3 months 18 days	2 years 9 months 18 days

LOANS HELD FOR INVESTMENT - Inv

LOANS HELD FOR INVESTMENT - Investment Portfolio (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2023 USD ($) option	Dec. 31, 2022 USD ($)	Jul. 31, 2022	Mar. 08, 2019 USD ($)
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 2,252,070	$ 2,252,070	$ 2,282,821
Loans held for investment	2,228,100	$ 2,228,100	$ 2,264,008
Unleveraged effective yield		8.70%
Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of extension options | option		1
Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of extension options | option		2
Extension period of maturity date		12 months
SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest rate per annum				2%
FL
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Extension period of maturity date		12 months
CA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Extension period of maturity date		6 months
Office | IL
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	42,800	$ 42,800
Fixed interest rate		10%
Interest income	1,700	$ 1,700
Office | CA | SOFR Plus 3.45% Due Nov 2023 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest income	700	1,200
Office | NJ
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest income	600	1,100
Office | Senior Mortgage Loans | IL
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	156,800	156,800
Loans held for investment	154,000	$ 154,000
Unleveraged effective yield		7.40%
Office | Senior Mortgage Loans | IL | SOFR Plus 3.95%, Due Dec 2023 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	56,900	$ 56,900
Loans held for investment	$ 52,500	$ 52,500
Interest rate per annum	3.95%	3.95%
Unleveraged effective yield		0%
Interest income	$ 1,300	$ 2,500
Office | Senior Mortgage Loans | IL | SOFR Plus 4.25% Due Jan 2025 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	56,000	56,000
Loans held for investment	$ 55,600	$ 55,600
Interest rate per annum	4.25%	4.25%
Unleveraged effective yield		9.90%
Office | Senior Mortgage Loans | IL | SOFR Plus 2.25%, Due Mar 2025 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest rate per annum	2.25%	2.25%
Office | Senior Mortgage Loans | NY | SOFR Plus 3.95%, Due Aug 2025 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 72,200	$ 72,200
Loans held for investment	$ 71,700	$ 71,700
Interest rate per annum	3.95%	3.95%
Unleveraged effective yield		9.50%
Office | Senior Mortgage Loans | Diversified | SOFR Plus 3.75% Due Jan 2024 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 122,200	$ 122,200
Loans held for investment	$ 122,000	$ 122,000
Interest rate per annum	3.75%	3.75%
Unleveraged effective yield		9.10%
Office | Senior Mortgage Loans | AZ | SOFR Plus 3.61%, Due Oct 2024 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 79,100	$ 79,100
Loans held for investment	$ 78,700	$ 78,700
Interest rate per annum	3.61%	3.61%
Unleveraged effective yield		9.20%
Office | Senior Mortgage Loans | NC | SOFR Plus 4.35% Due Mar 2024 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 68,800	$ 68,800
Loans held for investment	$ 68,700	$ 68,700
Interest rate per annum	4.35%	4.35%
Unleveraged effective yield		9.80%
Office | Senior Mortgage Loans | NC | SOFR Plus 3.65% Due Aug 2024 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 68,000	$ 68,000
Loans held for investment	$ 67,700	$ 67,700
Interest rate per annum	3.65%	3.65%
Unleveraged effective yield		9.20%
Office | Senior Mortgage Loans | GA | SOFR Plus 3.15% Due Dec 2023 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 48,600	$ 48,600
Loans held for investment	$ 48,500	$ 48,500
Interest rate per annum	3.15%	3.15%
Unleveraged effective yield		8.60%
Office | Senior Mortgage Loans | MA | SOFR Plus 3.75% Due Apr 2025 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 38,100	$ 38,100
Loans held for investment	$ 37,500	$ 37,500
Interest rate per annum	3.75%	3.75%
Unleveraged effective yield		9.50%
Office | Senior Mortgage Loans | CA | SOFR Plus 3.45% Due Nov 2023 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 33,200	$ 33,200
Loans held for investment	$ 31,900	$ 31,900
Interest rate per annum	3.45%	3.45%
Unleveraged effective yield		0%
Office | Senior Mortgage Loans | CA | SOFR Plus 3.50% Due Nov 2023 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 22,900	$ 22,900
Loans held for investment	$ 22,800	$ 22,800
Interest rate per annum	3.50%	3.50%
Unleveraged effective yield		8.90%
Office | Subordinated debt and preferred equity investments | NJ
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 18,500	$ 18,500
Loans held for investment	16,800	$ 16,800
Fixed interest rate		12%
Unleveraged effective yield		0%
Multifamily | Senior Mortgage Loans | NY | SOFR Plus 3.90% Due Jun 2025 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	132,200	$ 132,200
Loans held for investment	$ 131,100	$ 131,100
Interest rate per annum	3.90%	3.90%
Unleveraged effective yield		9.50%
Multifamily | Senior Mortgage Loans | TX | SOFR Plus 3.50% Due Jul 2025 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 100,000	$ 100,000
Loans held for investment	$ 99,300	$ 99,300
Interest rate per annum	3.50%	3.50%
Unleveraged effective yield		9.50%
Multifamily | Senior Mortgage Loans | TX | SOFR Plus 2.95% Due Dec 2024 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 68,200	$ 68,200
Loans held for investment	$ 67,900	$ 67,900
Interest rate per annum	2.95%	2.95%
Unleveraged effective yield		8.50%
Multifamily | Senior Mortgage Loans | TX | SOFR Plus 2.60% Due Oct 2024 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 22,600	$ 22,600
Loans held for investment	$ 22,400	$ 22,400
Interest rate per annum	2.60%	2.60%
Unleveraged effective yield		8.10%
Multifamily | Senior Mortgage Loans | CA | SOFR Plus 3.00% Due Dec 2025 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 31,700	$ 31,700
Loans held for investment	$ 31,500	$ 31,500
Interest rate per annum	3%	3%
Unleveraged effective yield		8.40%
Multifamily | Senior Mortgage Loans | PA | SOFR Plus 4.00% Due Dec 2023 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 29,200	$ 29,200
Loans held for investment	$ 29,200	$ 29,200
Interest rate per annum	4%	4%
Unleveraged effective yield		9.40%
Multifamily | Senior Mortgage Loans | WA | SOFR Plus 3.00% Due Nov 2025 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 23,100	$ 23,100
Loans held for investment	$ 23,000	$ 23,000
Interest rate per annum	3%	3%
Unleveraged effective yield		8.30%
Multifamily | Senior Mortgage Loans | WA | SOFR Plus 3.10% Due Sep 2023 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 18,700	$ 18,700
Loans held for investment	$ 18,700	$ 18,700
Interest rate per annum	3.10%	3.10%
Unleveraged effective yield		8.80%
Multifamily | Subordinated debt and preferred equity investments | SC | SOFR Plus 9.53% Due Sep 2025 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 20,600	$ 20,600
Loans held for investment	$ 20,500	$ 20,500
Interest rate per annum	9.53%	9.53%
Unleveraged effective yield		15.10%
Industrial | Senior Mortgage Loans | IL | SOFR Plus 4.65%, Due May 2024 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 100,100	$ 100,100
Loans held for investment	$ 99,800	$ 99,800
Interest rate per annum	4.65%	4.65%
Unleveraged effective yield		10.20%
Industrial | Senior Mortgage Loans | TX | SOFR Plus 5.35% Due Dec 2024 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 10,000	$ 10,000
Loans held for investment	$ 9,900	$ 9,900
Interest rate per annum	5.35%	5.35%
Unleveraged effective yield		10.90%
Industrial | Senior Mortgage Loans | FL | SOFR Plus 3.00% Due Dec 2025 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 25,500	$ 25,500
Loans held for investment	$ 25,400	$ 25,400
Interest rate per annum	3%	3%
Unleveraged effective yield		8.40%
Industrial | Senior Mortgage Loans | FL | SOFR Plus 5.75% Due Mar 2025 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 4,000	$ 4,000
Loans held for investment	$ 4,000	$ 4,000
Interest rate per annum	5.75%	5.75%
Unleveraged effective yield		11.30%
Industrial | Senior Mortgage Loans | MA | SOFR Plus 2.90% Due Jan 2028 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 47,000	$ 47,000
Loans held for investment	$ 46,800	$ 46,800
Interest rate per annum	2.90%	2.90%
Unleveraged effective yield		8.20%
Industrial | Senior Mortgage Loans | CA | SOFR Plus 3.85% Due Sep 2024 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 19,600	$ 19,600
Loans held for investment	$ 19,500	$ 19,500
Interest rate per annum	3.85%	3.85%
Unleveraged effective yield		9.30%
Industrial | Senior Mortgage Loans | NJ | SOFR Plus 3.85%, Due May 2024 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 27,800	$ 27,800
Loans held for investment	$ 27,700	$ 27,700
Interest rate per annum	3.85%	3.85%
Unleveraged effective yield		9.60%
Industrial | Senior Mortgage Loans | TN | SOFR Plus 5.60% Due Nov 2024 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 6,400	$ 6,400
Loans held for investment	$ 6,400	$ 6,400
Interest rate per annum	5.60%	5.60%
Unleveraged effective yield		11.10%
Mixed-use | Senior Mortgage Loans | NY | SOFR Plus 3.75% Due Jul 2024 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 75,700	$ 75,700
Loans held for investment	$ 75,400	$ 75,400
Interest rate per annum	3.75%	3.75%
Unleveraged effective yield		9.30%
Mixed-use | Senior Mortgage Loans | TX | SOFR Plus 3.85% Due Sep 2024 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 35,300	$ 35,300
Loans held for investment	$ 35,200	$ 35,200
Interest rate per annum	3.85%	3.85%
Unleveraged effective yield		9.30%
Mixed-use | Senior Mortgage Loans | FL | SOFR Plus 4.25%, Due Feb 2023 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 82,700	$ 82,700
Loans held for investment	$ 82,700	$ 82,700
Interest rate per annum	4.25%	4.25%
Unleveraged effective yield		9.50%
Mixed-use | Senior Mortgage Loans | CA | SOFR Plus 4.10%, Due Mar 2023 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 37,900	$ 37,900
Loans held for investment	$ 37,900	$ 37,900
Interest rate per annum	4.10%	4.10%
Unleveraged effective yield		9.30%
Residential Condominium | Senior Mortgage Loans | NY | SOFR Plus 8.95% Due Oct 2023 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 81,400	$ 81,400
Loans held for investment	$ 81,200	$ 81,200
Interest rate per annum	8.95%	8.95%
Unleveraged effective yield		15.90%
Residential Condominium | Senior Mortgage Loans | FL | SOFR Plus 5.35%, Due Jul 2024 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 75,000	$ 75,000
Loans held for investment	$ 75,000	$ 75,000
Interest rate per annum	5.35%	5.35%
Unleveraged effective yield		11%
Multifamily/Office | Senior Mortgage Loans | SC | SOFR Plus 3.00%, Due Nov 2024 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 67,000	$ 67,000
Loans held for investment	$ 66,900	$ 66,900
Interest rate per annum	3%	3%
Unleveraged effective yield		8.40%
Hotel | Senior Mortgage Loans | IL
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest income		$ 300
Hotel | Senior Mortgage Loans | IL | SOFR Plus 4.00% Due May 2024 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 35,000	35,000
Loans held for investment	$ 29,600	$ 29,600
Interest rate per annum	4%	4%
Unleveraged effective yield		0%
Hotel | Senior Mortgage Loans | NY
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal					$ 38,600
Hotel | Senior Mortgage Loans | NY | LIBOR Plus 4 .40% Due Mar 2026 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 39,500	$ 39,500
Loans held for investment	$ 39,000	$ 39,000
Interest rate per annum	4.40%	4.40%
Unleveraged effective yield		9.90%
Hotel | Senior Mortgage Loans | CA | SOFR Plus 4.20% Due Mar 2025 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 42,000	$ 42,000
Loans held for investment	$ 41,600	$ 41,600
Interest rate per annum	4.20%	4.20%
Unleveraged effective yield		9.90%
Student Housing | Senior Mortgage Loans | CA | SOFR Plus 3.95%, Due Jan 2024 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 34,000	$ 34,000
Loans held for investment	$ 34,000	$ 34,000
Interest rate per annum	3.95%	3.95%
Unleveraged effective yield		9.10%
Student Housing | Senior Mortgage Loans | AL | SOFR Plus 3.95% Due May 2024 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 19,500	$ 19,500
Loans held for investment	$ 19,400	$ 19,400
Interest rate per annum	3.95%	3.95%
Unleveraged effective yield		9.50%
Self Storage | Senior Mortgage Loans | IL | SOFR Plus 3.10% Due Dec 2023 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 5,600	$ 5,600
Loans held for investment	$ 5,600	$ 5,600
Interest rate per annum	3.10%	3.10%
Unleveraged effective yield		8.60%
Self Storage | Senior Mortgage Loans | TX | SOFR Plus 3.00%, Due Aug 2024 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 8,000	$ 8,000
Loans held for investment	$ 8,000	$ 8,000
Interest rate per annum	3%	3%
Unleveraged effective yield		8.40%
Self Storage | Senior Mortgage Loans | TX | SOFR Plus 3.00% Due Sep 2024 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 2,900	$ 2,900
Loans held for investment	$ 2,900	$ 2,900
Interest rate per annum	3%	3%
Unleveraged effective yield		8.30%
Self Storage | Senior Mortgage Loans | MA | SOFR Plus 3.00%, Due Nov 2024 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 7,700	$ 7,700
Loans held for investment	$ 7,700	$ 7,700
Interest rate per annum	3%	3%
Unleveraged effective yield		8.30%
Self Storage | Senior Mortgage Loans | MA | SOFR Plus 3.00% Due Dec 2024 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 8,500	$ 8,500
Loans held for investment	$ 8,500	$ 8,500
Interest rate per annum	3%	3%
Unleveraged effective yield		8.30%
Self Storage | Senior Mortgage Loans | MA | SOFR Plus 3.00%, Due Oct 2024 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 6,700	$ 6,700
Loans held for investment	$ 6,700	$ 6,700
Interest rate per annum	3%	3%
Unleveraged effective yield		8.40%
Self Storage | Senior Mortgage Loans | PA | SOFR Plus 3.00% Due Dec 2025 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 18,200	$ 18,200
Loans held for investment	$ 18,100	$ 18,100
Interest rate per annum	3%	3%
Unleveraged effective yield		8.40%
Self Storage | Senior Mortgage Loans | NJ | SOFR Plus 2.90% Due April 2025 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 17,600	$ 17,600
Loans held for investment	$ 17,400	$ 17,400
Interest rate per annum	2.90%	2.90%
Unleveraged effective yield		8.80%
Self Storage | Senior Mortgage Loans | NJ | SOFR Plus 3.00% Due Jul 2024 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 5,900	$ 5,900
Loans held for investment	$ 5,900	$ 5,900
Interest rate per annum	3%	3%
Unleveraged effective yield		8.60%
Self Storage | Senior Mortgage Loans | WA | SOFR Plus 2.90% Due Mar 2025 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 11,500	$ 11,500
Loans held for investment	$ 11,400	$ 11,400
Interest rate per annum	2.90%	2.90%
Unleveraged effective yield		8.80%
Self Storage | Senior Mortgage Loans | MO | SOFR Plus 3.10% Due Dec 2023 | SOFR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal	$ 6,500	$ 6,500
Loans held for investment	$ 6,500	$ 6,500
Interest rate per annum	3.10%	3.10%
Unleveraged effective yield		8.40%

LOANS HELD FOR INVESTMENT - Por

LOANS HELD FOR INVESTMENT - Portfolio Activity (Details) - USD ($) $ in Thousands	1 Months Ended		6 Months Ended
	Apr. 30, 2023	Jan. 31, 2023	Jun. 30, 2023
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Balance at the beginning of the period		$ 2,264,008	$ 2,264,008
Initial funding			47,000
Origination fees and discounts, net of costs			(658)
Additional funding			59,824
Amortizing payments			(7,558)
Loan payoffs			(96,416)
Loans sold to third parties			(41,489)
Origination fee and discount accretion			3,389
Balance at the end of the period			$ 2,228,100
Residential | CA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loans sold to third parties		$ 14,300
Office | IL | Senior Mortgage Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loans sold to third parties	$ 27,200

CURRENT EXPECTED CREDIT LOSSE_2

CURRENT EXPECTED CREDIT LOSSES - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, allowance for credit loss, excluding accrued interest	$ 112,500
Allowance for credit loss, basis points	46,600%
Commitments	$ 2,413,134		$ 2,510,308
Outstanding principal	2,252,070		2,282,821
Office | IL
Financing Receivable, Allowance for Credit Loss [Line Items]
Outstanding principal	42,800
Office | Senior Mortgage Loans | IL
Financing Receivable, Allowance for Credit Loss [Line Items]
Outstanding principal	156,800
Office | Senior Mortgage Loans | IL | SOFR Plus 3.95%, Due Dec 2023 | SOFR
Financing Receivable, Allowance for Credit Loss [Line Items]
Outstanding principal	56,900
Hotel | Senior Mortgage Loans | IL | SOFR Plus 4.00% Due May 2024 | SOFR
Financing Receivable, Allowance for Credit Loss [Line Items]
Outstanding principal	35,000
5 - Impaired/Loss Likely: A loan that has significantly increased probability of default or principal loss | Office | Senior Mortgage Loans | IL
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, allowance for credit loss, excluding accrued interest	42,100
5 - Impaired/Loss Likely: A loan that has significantly increased probability of default or principal loss | Hotel | Senior Mortgage Loans | IL
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, allowance for credit loss, excluding accrued interest	5,900
Other Assets
Financing Receivable, Allowance for Credit Loss [Line Items]
Interest receivable	14,600		14,000
Loans Held for Investment
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, allowance for credit loss, excluding accrued interest	108,114	$ 87,502	65,969
Unfunded Loan Commitment
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, allowance for credit loss, excluding accrued interest	$ 4,340	$ 4,825	$ 5,339

CURRENT EXPECTED CREDIT LOSSE_3

CURRENT EXPECTED CREDIT LOSSES - Allowance for Credit Loss (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Provision for current expected credit losses	$ 20,127	$ 7,768	$ 41,146	$ 7,174
Balance at the end of the period	112,500		112,500
Loans Held for Investment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at the beginning of the period	87,502		65,969
Provision for current expected credit losses	20,612		42,145
Write-offs	0		0
Recoveries	0		0
Balance at the end of the period	108,114		108,114
Unfunded Loan Commitment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at the beginning of the period	4,825		5,339
Provision for current expected credit losses	(485)		(999)
Write-offs	0		0
Recoveries	0		0
Balance at the end of the period	$ 4,340		$ 4,340

CURRENT EXPECTED CREDIT LOSSE_4

CURRENT EXPECTED CREDIT LOSSES - Internal Credit Risk Rating (Details) - Loans Held for Investment $ in Thousands	Jun. 30, 2023 USD ($)
Financing Receivable, Credit Quality Indicator [Line Items]
2023	$ 46,758
2022	596,304
2021	780,934
2020	332,645
2019	286,560
Prior	184,899
Total	2,228,100
1 - Very Low Risk
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	13,554
2021	5,592
2020	0
2019	0
Prior	0
Total	19,146
2 - Low Risk
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	35,004
2021	276,653
2020	0
2019	0
Prior	56,790
Total	368,447
3 - Medium Risk
Financing Receivable, Credit Quality Indicator [Line Items]
2023	46,758
2022	466,522
2021	498,689
2020	121,999
2019	103,291
Prior	29,217
Total	1,266,476
4 - High Risk/Potential for Loss: Asset performance is trailing underwritten expectations. Loan at risk of impairment without material improvement to performance
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	81,224
2021	0
2020	210,646
2019	183,269
Prior	16,823
Total	491,962
5 - Impaired/Loss Likely: A loan that has significantly increased probability of default or principal loss
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	82,069
Total	$ 82,069

REAL ESTATE OWNED - Narrative (

REAL ESTATE OWNED - Narrative (Details) - USD ($) $ in Thousands			3 Months Ended		6 Months Ended
	Mar. 01, 2022	Nov. 08, 2021	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Mar. 08, 2019
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal			$ 2,252,070		$ 2,252,070		$ 2,282,821
Gain on sale of real estate owned			0	$ 0	0	$ 2,197
Senior Mortgage Loans | New York | Hotel
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding principal								$ 38,600
Debt derecognized								38,600
Real estate acquired through foreclosure								36,900
Other repossessed hotel assets								1,700
Repossessed hotel property								$ 38,600
Proceeds from sale of hotel property		$ 40,000
Gain on sale of real estate owned						$ 2,200
Senior Mortgage Loans | New York | Hotel | Third Party Buyer of the Hotel Property
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Initial funding of loan receivable					30,700
Senior Mortgage Loans | New York | Hotel | Third Party Buyer of the Hotel Property | Unfunded Loan Commitment
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Additional loan proceeds to be available to fund future advances			$ 25,000		$ 25,000
Contributed equity into purchase	$ 12,900
Additional equity associated with planned renovation costs	$ 8,700

DEBT - Schedule of Outstanding

DEBT - Schedule of Outstanding Balances and Total Commitments Under Financing Agreements (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Outstanding Balance	$ 936,257,000	$ 960,231,000
Total Commitment	1,535,000,000	1,535,000,000
Secured term loan
Debt Instrument [Line Items]
Outstanding Balance	150,000,000	150,000,000
Total Commitment	150,000,000	150,000,000
Wells Fargo Facility | Revolving credit facility, optional commitment amount
Debt Instrument [Line Items]
Total Commitment	500,000,000
Secured funding facility
Debt Instrument [Line Items]
Outstanding Balance	681,257,000	705,231,000
Total Commitment	1,280,000,000	1,280,000,000
Secured funding facility | Wells Fargo Facility
Debt Instrument [Line Items]
Outstanding Balance	241,844,000	270,798,000
Total Commitment	450,000,000	450,000,000
Secured funding facility | Citibank Facility
Debt Instrument [Line Items]
Outstanding Balance	236,240,000	236,240,000
Total Commitment	325,000,000	325,000,000
Secured funding facility | CNB Facility
Debt Instrument [Line Items]
Outstanding Balance	0	0
Total Commitment	75,000,000	75,000,000
Secured funding facility | MetLife Facility
Debt Instrument [Line Items]
Outstanding Balance	0	0
Total Commitment	180,000,000	180,000,000
Secured funding facility | Morgan Stanley Facility
Debt Instrument [Line Items]
Outstanding Balance	203,173,000	198,193,000
Total Commitment	250,000,000	250,000,000
Notes Payable
Debt Instrument [Line Items]
Outstanding Balance	105,000,000	105,000,000
Total Commitment	$ 105,000,000	$ 105,000,000

DEBT - Disclosures (Details)

DEBT - Disclosures (Details)		1 Months Ended				3 Months Ended		6 Months Ended			12 Months Ended	18 Months Ended
	Nov. 30, 2019 USD ($) loan	Jun. 30, 2023 USD ($) extension	Feb. 28, 2023	Jul. 31, 2022 USD ($) loan	Jun. 30, 2019 USD ($)	Jun. 30, 2023 USD ($) extension	Jun. 30, 2022 USD ($)	Nov. 12, 2025	Jun. 30, 2023 USD ($) extension option	Jun. 30, 2022 USD ($)	Nov. 12, 2026	Nov. 12, 2026	Dec. 31, 2022 USD ($)
Funding agreements
Total Commitment		$ 1,535,000,000				$ 1,535,000,000			$ 1,535,000,000				$ 1,535,000,000
Number of non-recourse notes | loan	2
Outstanding Balance		936,257,000				936,257,000			936,257,000				960,231,000
Outstanding principal		2,252,070,000				2,252,070,000			$ 2,252,070,000				2,282,821,000
SOFR
Funding agreements
Interest rate per annum				2%
Minimum
Funding agreements
Number of extension options | option									1
Maximum
Funding agreements
Extension period of maturity date									12 months
Number of extension options | option									2
ACRC Lender CO LLC
Funding agreements
Number of non-recourse notes | loan				2
Outstanding Balance		105,000,000		$ 105,000,000		105,000,000			$ 105,000,000
ACRC Lender CO LLC | NY | Multifamily | Senior Mortgage Loans
Funding agreements
Outstanding Balance				105,000,000
Outstanding principal				$ 133,000,000
Secured revolving funding facility | Wells Fargo Facility
Funding agreements
Total Commitment		$ 450,000,000				$ 450,000,000			$ 450,000,000
Number of extension periods available for maturity date | extension		2				2			2
Extension period of maturity date									12 months
Secured revolving funding facility | Wells Fargo Facility | Minimum | One-month SOFR
Funding agreements
Interest rate margin (as a percent)									1.50%
Secured revolving funding facility | Wells Fargo Facility | Maximum | One-month SOFR
Funding agreements
Interest rate margin (as a percent)									3.75%
Secured revolving funding facility | Citibank Facility
Funding agreements
Total Commitment		$ 325,000,000				$ 325,000,000			$ 325,000,000
Number of extension periods available for maturity date | extension		2				2			2
Extension period of maturity date									12 months
Non-utilization fee on average available balance (basis points)									0.25%
Facility used on average (at least) (as a percent)									75%
Non-utilization fee						$ 0	$ 11,000		$ 0	$ 11,000
Secured revolving funding facility | Citibank Facility | Minimum | 30 day SOFR
Funding agreements
Interest rate margin (as a percent)									1.50%
Secured revolving funding facility | Citibank Facility | Maximum | 30 day SOFR
Funding agreements
Interest rate margin (as a percent)									2.10%
Revolving credit facility, optional commitment amount | Wells Fargo Facility
Funding agreements
Total Commitment		$ 500,000,000				500,000,000			$ 500,000,000
CNB Facility | CNB Facility
Funding agreements
Total Commitment		75,000,000				75,000,000			75,000,000
Non-utilization fee						71,000	70,000		$ 141,000	140,000
CNB Facility | CNB Facility | SOFR
Funding agreements
Interest rate margin (as a percent)									1%
CNB Facility | CNB Facility | Federal funds rate
Funding agreements
Interest rate margin (as a percent)									0.50%
Non-utilization fee on average available balance (basis points)									0.375%
Facility used on average (at least) (as a percent)									75%
CNB Facility | CNB Facility | LIBOR
Funding agreements
Interest rate margin (as a percent)									2.65%
CNB Facility | CNB Facility | Minimum | SOFR
Funding agreements
Interest rate margin (as a percent)									0.35%
CNB Facility | CNB Facility | Maximum | SOFR
Funding agreements
Interest rate margin (as a percent)									2.65%
Revolving Credit Facility - Optional Funding Period | CNB Facility
Funding agreements
Extension period of maturity date			12 months
Revolving master repurchase facility | MetLife Facility
Funding agreements
Total Commitment		$ 180,000,000				180,000,000			$ 180,000,000
Extension period of maturity date		12 months
Non-utilization fee on average available balance (basis points)									0.25%
Non-utilization fee						$ 74,000	$ 61,000		$ 147,000	$ 121,000
Non-utilization threshold percentage (less than) (as a percent)		65%				65%			65%
Revolving master repurchase facility | MetLife Facility | 30 day SOFR
Funding agreements
Interest rate margin (as a percent)									2.50%
Revolving master repurchase facility | Morgan Stanley Facility
Funding agreements
Total Commitment		$ 250,000,000				$ 250,000,000			$ 250,000,000
Number of extension periods available for maturity date | extension		1				1			1
Extension period of maturity date									12 months
Revolving master repurchase facility | Morgan Stanley Facility | 30 day SOFR
Funding agreements
Interest rate margin (as a percent)									2.25%
Revolving master repurchase facility | Morgan Stanley Facility | Minimum | 30 day SOFR
Funding agreements
Interest rate margin (as a percent)									1.75%
Notes Payable, Due June 10, 2024 | NY
Funding agreements
Interest rate margin (as a percent)									3%
Notes Payable, Due June 10, 2024 | Notes Payable | NY
Funding agreements
Interest expense from real estate owned					$ 28,300,000
Notes Payable
Funding agreements
Interest rate margin (as a percent)									3.75%
Outstanding Balance	$ 23,500,000
Notes Payable | SC
Funding agreements
Outstanding Balance	$ 34,600,000
Notes Payable | ACRC Lender CO LLC
Funding agreements
Extension period of maturity date				12 months
Number of extension options | loan				2
Secured term loan
Funding agreements
Total Commitment		$ 150,000,000				$ 150,000,000			$ 150,000,000				150,000,000
Interest rate margin (as a percent)									0.50%
Outstanding Balance		150,000,000				150,000,000			$ 150,000,000				$ 150,000,000
Aggregate principal amount		$ 150,000,000				$ 150,000,000			$ 150,000,000
Debt discount on initial draw down (as a percent)						4.60%	4.60%		4.60%	4.60%
Secured term loan | Forecast
Funding agreements
Interest rate during period								4.50%
Interest rate, increase (decrease)											0.125%
Interest rate, quarterly increase												0.25%

SECURED BORROWINGS (Details)

SECURED BORROWINGS (Details) - USD ($)	1 Months Ended		6 Months Ended
	Jul. 31, 2022	Apr. 30, 2019	Jun. 30, 2023	Dec. 31, 2022	Nov. 30, 2019
Debt Instrument [Line Items]
Outstanding Balance			$ 936,257,000	$ 960,231,000
Notes Payable
Debt Instrument [Line Items]
Outstanding Balance					$ 23,500,000
Interest rate margin (as a percent)			3.75%
North Carolina | Multifamily
Debt Instrument [Line Items]
Repayments of debt	$ 30,500,000
North Carolina | Notes Payable
Debt Instrument [Line Items]
Aggregate principal amount		$ 30,500,000
Outstanding Balance		24,400,000
North Carolina | Notes Payable | Multifamily
Debt Instrument [Line Items]
Outstanding Balance		$ 6,100,000
North Carolina | Notes Payable | Multifamily | Senior Mortgage Loan Purchased
Debt Instrument [Line Items]
Outstanding Balance	$ 24,400,000
North Carolina | Senior Mortgage Loans
Debt Instrument [Line Items]
Extension period of maturity date		12 months
North Carolina | Senior Mortgage Loan, Due May 5, 2023 | Office
Debt Instrument [Line Items]
Interest rate margin (as a percent)		2.50%

DERIVATIVE FINANCIAL INSTRUME_3

DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Interest Rate Derivatives (Details) $ in Thousands	3 Months Ended			6 Months Ended		12 Months Ended
	Jun. 30, 2023 USD ($) derivative	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Jun. 30, 2023 USD ($) derivative	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($) derivative
Derivative [Line Items]
Floor rate (percent)	0			0
Interest rate caps | LIBOR
Derivative [Line Items]
Notional Amount			$ 170,000
Other comprehensive income			$ 2,000
Gain on derivative	$ 266	$ 264		$ 723	$ 268
Designated as Hedging Instrument | Interest rate swaps | LIBOR
Derivative [Line Items]
Number of Instruments | derivative	1			1		1
Notional Amount	$ 30,000			$ 30,000		$ 410,000
Interest rate swaps, fixed rate (percent)	0.2075%			0.2075%		0.2075%
Weighted Average Maturity (Years)				6 months		4 months 24 days
Designated as Hedging Instrument | Interest rate caps | LIBOR
Derivative [Line Items]
Number of Instruments | derivative	0			0		0
Notional Amount	$ 0			$ 0		$ 0
Interest rate caps, fixed rate (percent)			0.50%

DERIVATIVE FINANCIAL INSTRUME_4

DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Fair Value of Derivative Instruments (Details) - Designated as Hedging Instrument - Interest rate derivatives - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Other Assets
Derivatives, Fair Value [Line Items]
Fair Value of Derivatives in an Asset Position	$ 712	$ 6,565
Other Liabilities
Derivatives, Fair Value [Line Items]
Fair Value of Derivatives in an Liability Position	$ 0	$ 0

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Commitments to Fund (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Total commitments	$ 2,413,134	$ 2,510,308
Less: funded commitments	(2,252,070)	(2,282,821)
Total unfunded commitments	$ 161,064	$ 227,487

STOCKHOLDERS' EQUITY - Narrativ

STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023	Jul. 25, 2023	Jul. 26, 2022	Jun. 30, 2018
Class of Stock [Line Items]
Share repurchase program, authorized amount				$ 50,000
Stock repurchased	$ 4,600
Subsequent Event
Class of Stock [Line Items]
Share repurchase program, authorized amount			$ 50,000
Repurchase Program
Class of Stock [Line Items]
Stock repurchase (in shares)	535,965
Stock repurchased	$ 4,600
Stock repurchase average price (in dollars per share)	$ 8.58	$ 8.58
Restricted stock | Amended and Restated 2012 Equity Incentive Plan
Class of Stock [Line Items]
Shares available for grant (in shares)					2,490,000
Restricted Stock and Restricted Stock Units | Amended and Restated 2012 Equity Incentive Plan | Minimum
Class of Stock [Line Items]
Award vesting period (in years)		1 year
Restricted Stock and Restricted Stock Units | Amended and Restated 2012 Equity Incentive Plan | Maximum
Class of Stock [Line Items]
Award vesting period (in years)		3 years

STOCKHOLDERS' EQUITY - Disclosu

STOCKHOLDERS' EQUITY - Disclosures (Details)	6 Months Ended
	Jun. 30, 2023 shares
Restricted stock activity
Balance at the beginning of the period (in shares)	848,609
Granted (in shares)	64,266
Vested (in shares)	(177,207)
Forfeited (in shares)	(4,833)
Balance at the end of the period (in shares)	730,835
Future Anticipated Vesting Schedule
2023 (in shares)	37,255
2024 (in shares)	317,036
2025 (in shares)	232,348
2026 (in shares)	144,196
2027 (in shares)	0
Total (in shares)	730,835
Restricted stock | Restricted Stock Grants—Directors
Restricted stock activity
Balance at the beginning of the period (in shares)	16,137
Granted (in shares)	64,266
Vested (in shares)	(13,218)
Forfeited (in shares)	0
Balance at the end of the period (in shares)	67,185
Future Anticipated Vesting Schedule
2023 (in shares)	32,970
2024 (in shares)	33,798
2025 (in shares)	417
2026 (in shares)	0
2027 (in shares)	0
Total (in shares)	67,185
Restricted Stock Units (RSUs) | Officer
Restricted stock activity
Balance at the beginning of the period (in shares)	832,472
Granted (in shares)	0
Vested (in shares)	(163,989)
Forfeited (in shares)	(4,833)
Balance at the end of the period (in shares)	663,650
Future Anticipated Vesting Schedule
2023 (in shares)	4,285
2024 (in shares)	283,238
2025 (in shares)	231,931
2026 (in shares)	144,196
2027 (in shares)	0
Total (in shares)	663,650

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Earnings Per Share [Abstract]
Net income (loss) attributable to common stockholders, basic	$ (2,198)	$ 10,031	$ (8,638)	$ 26,231
Net income (loss) attributable to common stockholders, diluted	$ (2,198)	$ 10,031	$ (8,638)	$ 26,231
Divided by:
Basic weighted average shares of common stock outstanding (in shares)	54,347,204	50,562,559	54,468,752	48,892,754
Weighted average non-vested restricted stock and RSUs (in shares)	0	436,946	0	443,513
Diluted weighted average shares of common stock outstanding (in shares)	54,347,204	50,999,505	54,468,752	49,336,267
Basic earnings (loss) per common share (in dollars per share)	$ (0.04)	$ 0.20	$ (0.16)	$ 0.54
Diluted earnings (loss) per common share (in dollars per share)	$ (0.04)	$ 0.20	$ (0.16)	$ 0.53
Shares excluded from computation of diluted earnings (loss) per common share as the impact of including those shares would be antidilutive	716,983		699,896

INCOME TAX - Schedule of Compon

INCOME TAX - Schedule of Components of Income Tax (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Components of the company's income tax provision
Total income tax expense (benefit), including excise tax	$ (46)	$ 98	$ 64	$ 204
Excise tax rate			4%
ACRE Capital Sale
Components of the company's income tax provision
Current	9	8	$ 19	24
Deferred	0	0	0	0
Excise tax	(55)	90	45	180
Total income tax expense (benefit), including excise tax	$ (46)	$ 98	$ 64	$ 204

FAIR VALUE - Available-For-Sale

FAIR VALUE - Available-For-Sale Debt Securities - Narrative (Details) $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($) investment loan	Jun. 30, 2023 investment
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Number of debt securities for an aggregate purchase price | loan	3
Debt securities for an aggregate purchase price | $	$ 27.9
Debt securities, available-for-sale, term	10 years
Number of debt security investments | investment	3	3
SOFR
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Debt securities floating rate, investment grade rated	2.47%

FAIR VALUE - Available-For-Sa_2

FAIR VALUE - Available-For-Sale Debt Securities (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Face Amount	$ 28,000	$ 28,000
Amortized Cost	27,893	27,881
Unamortized Discount	107	119
Unrealized Gain (Loss), Net	$ 77	$ 55

FAIR VALUE - Derivative Assets

FAIR VALUE - Derivative Assets and Liabilities, Recurring (Details) - Fair Value, Recurring - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Interest rate derivatives
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets	$ 712	$ 6,565
Financial liabilities	0	0
Interest rate derivatives | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets	0	0
Financial liabilities	0	0
Interest rate derivatives | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets	712	6,565
Financial liabilities	0	0
Interest rate derivatives | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets	0	0
Financial liabilities	0	0
Available-for-sale debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets	27,970	27,936
Available-for-sale debt securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets	0	0
Available-for-sale debt securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets	27,970	27,936
Available-for-sale debt securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets	$ 0	$ 0

FAIR VALUE - Carrying Value and

FAIR VALUE - Carrying Value and Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Financial assets:
Loans held for investment	$ 2,228,100	$ 2,264,008
Financial liabilities:
Collateralized loan obligation securitization debt (consolidated VIEs)	735,093	777,675
Carrying Value
Financial assets:
Loans held for investment	2,228,100	2,264,008
Financial liabilities:
Secured funding agreements	681,257	705,231
Notes payable	104,559	104,460
Secured term loan	149,295	149,200
Collateralized loan obligation securitization debt (consolidated VIEs)	735,093	777,675
Fair Value | Level 3
Financial assets:
Loans held for investment	2,127,328	2,233,319
Financial liabilities:
Secured term loan	128,634	137,571
Collateralized loan obligation securitization debt (consolidated VIEs)	709,517	749,242
Fair Value | Level 2
Financial liabilities:
Secured funding agreements	681,257	705,231
Notes payable	$ 105,000	$ 103,635

RELATED PARTY TRANSACTIONS - Na

RELATED PARTY TRANSACTIONS - Narrative (Details)		3 Months Ended		6 Months Ended
	Apr. 25, 2022 USD ($)	Jun. 30, 2023 USD ($) quarter	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) quarter	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Related Party Transaction [Line Items]
Management fee renewal term (in years)				1 year
Management agreement termination, termination fee times average annual base management free and incentive fees received				300%
Management fee look back period				24 months
Loans held for investment		$ 2,228,100,000		$ 2,228,100,000		$ 2,264,008,000
Outstanding principal		2,252,070,000		2,252,070,000		2,282,821,000
Related Party
Related Party Transaction [Line Items]
Amended agreement to exclude real estate revenues from net income	$ 2,400,000
Amended agreement to include gain on termination of interest rate cap derivative	$ 2,000,000
Incentive fees		334,000	$ 965,000	334,000	$ 1,300,000
Residential
Related Party Transaction [Line Items]
Loans held for investment		225,100,000		225,100,000		$ 213,700,000
Senior Mortgage Loans | Industrial | Loan Purchase Commitments
Related Party Transaction [Line Items]
Outstanding principal		200,000,000		$ 200,000,000
ACREM
Related Party Transaction [Line Items]
Base management fees as a percentage of stockholders' equity per annum				1.50%
Incentive fee payable (not less than)		$ 0		$ 0
Percentage multiplied to arrive at first value affecting calculation of incentive fees				20%
Previous period for which core earnings are considered to arrive at first value affecting calculation of incentive fees				12 months
Previous period for product of weighted average price per share and weighted average number of shares of common stock and other shares				12 months
Percentage multiplied to arrive at difference of first value affecting calculation of incentive fees				8%
Period whose fiscal quarters are considered to arrive at first value affecting calculation of incentive fees				12 months
Minimum cumulative core earnings, number of quarters | quarter		12		12
Minimum cumulative core earnings for calculation of incentive fee		$ 0		$ 0

RELATED PARTY TRANSACTIONS - Re

RELATED PARTY TRANSACTIONS - Related Party Costs Incurred (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Related Party
Related Party Transaction [Line Items]
Payable	$ 4,806		$ 4,806		$ 5,580
ACREM | Continuing Operations
Related Party Transaction [Line Items]
Incurred	4,462	$ 4,572	8,226	$ 8,411
ACREM | Continuing Operations | Related Party
Related Party Transaction [Line Items]
Payable	4,806		4,806		5,580
ACREM | Continuing Operations | Management fees
Related Party Transaction [Line Items]
Incurred	3,000	2,801	6,010	5,417
ACREM | Continuing Operations | Management fees | Related Party
Related Party Transaction [Line Items]
Payable	3,000		3,000		3,026
ACREM | Continuing Operations | Incentive fees
Related Party Transaction [Line Items]
Incurred	334	965	334	1,323
ACREM | Continuing Operations | Incentive fees | Related Party
Related Party Transaction [Line Items]
Payable	334		334		1,264
ACREM | Continuing Operations | General and administrative expenses
Related Party Transaction [Line Items]
Incurred	1,109	796	1,842	1,631
ACREM | Continuing Operations | General and administrative expenses | Related Party
Related Party Transaction [Line Items]
Payable	1,313		1,313		1,232
ACREM | Continuing Operations | Direct costs
Related Party Transaction [Line Items]
Incurred	19	$ 10	40	$ 40
ACREM | Continuing Operations | Direct costs | Related Party
Related Party Transaction [Line Items]
Payable	$ 159		$ 159		$ 58

DIVIDENDS AND DISTRIBUTIONS (De

DIVIDENDS AND DISTRIBUTIONS (Details) - USD ($) $ / shares in Units, $ in Thousands					3 Months Ended		6 Months Ended
	May 02, 2023	Feb. 15, 2023	May 03, 2022	Feb. 15, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
DIVIDENDS AND DISTRIBUTIONS
Dividends per share amount declared (in dollars per share)	$ 0.35	$ 0.35	$ 0.35	$ 0.35	$ 0.35	$ 0.35	$ 0.70	$ 0.70
Total cash dividends	$ 19,180	$ 19,346	$ 19,198	$ 16,740			$ 38,526	$ 35,938
Cash dividends payable (in dollars per share)					0.33		$ 0.33
Supplemental cash dividend payable (in dollars per share)					$ 0.02		$ 0.02

VARIABLE INTEREST ENTITIES - Na

VARIABLE INTEREST ENTITIES - Narrative (Details) $ in Thousands		3 Months Ended			6 Months Ended	12 Months Ended
	Jan. 28, 2021 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Jun. 30, 2023 USD ($) loan	Dec. 31, 2022 USD ($) loan	Jan. 11, 2019 USD ($)	Mar. 30, 2017 USD ($)
Variable Interest Entity [Line Items]
Receivables related to repayments of outstanding principal on previous mortgage assets		$ 87,900			$ 87,900	$ 127,600
Loans held for investment		2,228,100			2,228,100	$ 2,264,008
Sale of common stock			$ 103,393	$ 2,874
Credit risk, financial instrument, maximum exposure					238,200
ACRE Commercial Mortgage 2021-FL4 Ltd. and ACRE Commercial Mortgage 2021-FL4 LLC | Preferred Stock
Variable Interest Entity [Line Items]
Sale of common stock	$ 64,300
ACRE Commercial Mortgage 2021-FL4 Ltd. and ACRE Commercial Mortgage 2021-FL4 LLC | Preferred Stock | Wholly Owned Subsidiary To Parent Company
Variable Interest Entity [Line Items]
Sale of common stock					64,300
Variable Interest Entity, Not Primary Beneficiary | NY | Residential Condominium
Variable Interest Entity [Line Items]
Credit risk, financial instrument, maximum exposure					$ 81,200
Floating Rate Notes, Weighted Average Coupon Rate, LIBOR Plus 1.85%
Variable Interest Entity [Line Items]
Number of properties collateralized for mortgage loan | loan					16	16
Receivables related to repayments of outstanding principal		469,100			$ 469,100	$ 429,400
Mortgaged Assets | Holdco
Variable Interest Entity [Line Items]
Principal amount of certificates retained by wholly owned subsidiary of the entity		58,500			58,500
Offered Certificates | Parent Company
Variable Interest Entity [Line Items]
Preferred equity fully funded amount		52,900			52,900
Secured funding agreements | Parent Company
Variable Interest Entity [Line Items]
Loans held for investment		111,400			111,400
Secured, Floating Rate Notes | ACRE Commercial Mortgage 2021-FL4 Ltd. and ACRE Commercial Mortgage 2021-FL4 LLC
Variable Interest Entity [Line Items]
Aggregate principal amount	$ 603,000
Secured, Floating Rate Notes | ACRE Commercial Mortgage 2021-FL4 Ltd. and ACRE Commercial Mortgage 2021-FL4 LLC | Wholly Owned Subsidiary To Parent Company
Variable Interest Entity [Line Items]
Aggregate principal amount		62,500			62,500
Collateral amount		126,800			126,800
Repayments of debt		800			$ 42,900
FL4 Mortgage Assets
Variable Interest Entity [Line Items]
Number of properties collateralized for mortgage loan | loan					11	12
Receivables related to repayments of outstanding principal		$ 417,300			$ 417,300	$ 458,300
Receivables related to repayments of outstanding principal on mortgage assets						$ 1,900
Wells Fargo Facility | Notes Payable
Variable Interest Entity [Line Items]
Debt commitment								$ 308,800
Wells Fargo Facility | Notes Payable | 2019 FL3 CLO Securitization
Variable Interest Entity [Line Items]
Debt commitment							$ 504,100
Wells Fargo Facility | Collateralized Loan Obligations
Variable Interest Entity [Line Items]
Debt commitment								$ 32,400
Wells Fargo Facility | Collateralized Loan Obligations | 2019 FL3 CLO Securitization
Variable Interest Entity [Line Items]
Debt commitment							$ 52,900

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details)	Jul. 27, 2023 extension	Sep. 30, 2023 $ / shares	Jun. 30, 2023 $ / shares
Subsequent Event [Line Items]
Cash dividends payable (in dollars per share)			$ 0.33
Subsequent Event
Subsequent Event [Line Items]
Number of extension options | extension	1
Extension period of maturity date	12 months
Forecast
Subsequent Event [Line Items]
Cash dividends payable (in dollars per share)		$ 0.33