Ares Commercial Real Estate (ACRE) 10-Q5 Aug 242024 Q2 Quarterly reportFinancial data

Company Profile

COVER PAGE

COVER PAGE - shares	6 Months Ended
COVER PAGE - shares	Jun. 30, 2024	Aug. 02, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
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		54,518,727
Entity Central Index Key	0001529377
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
ASSETS
Cash and cash equivalents	$ 70,649	$ 110,459
Loans held for investment ($741,218 and $892,166 related to consolidated VIEs, respectively)	1,972,551	2,126,524
Current expected credit loss reserve	(137,403)	(159,885)
Loans held for investment, net of current expected credit loss reserve	1,835,148	1,966,639
Loans held for sale ($38,981 related to consolidated VIEs as of December 31, 2023)	20,534	38,981
Investment in available-for-sale debt securities, at fair value	28,113	28,060
Real estate owned held for investment, net	81,728	83,284
Real estate owned held for sale ($14,509 related to consolidated VIEs as of June 30, 2024)	14,509	0
Other assets ($2,484 and $3,690 of interest receivable related to consolidated VIEs, respectively; $32,002 of other receivables related to consolidated VIEs as of December 31, 2023)	19,074	52,354
Total assets	2,069,755	2,279,777
LIABILITIES
Secured funding agreements	625,936	639,817
Notes payable	104,751	104,662
Secured term loan	137,409	149,393
Collateralized loan obligation securitization debt (consolidated VIEs)	588,421	723,117
Due to affiliate	4,526	4,135
Dividends payable	13,812	18,220
Other liabilities ($1,779 and $2,263 of interest payable related to consolidated VIEs, respectively)	12,637	14,584
Total liabilities	1,487,492	1,653,928
Commitments and contingencies (Note 8)
STOCKHOLDERS' EQUITY
Common stock, par value $0.01 per share, 450,000,000 shares authorized at June 30, 2024 and December 31, 2023 and 54,518,727 and 54,149,225 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively	532	532
Additional paid-in capital	814,620	812,184
Accumulated other comprehensive income	193	153
Accumulated earnings (deficit)	(233,082)	(187,020)
Total stockholders' equity	582,263	625,849
Total liabilities and stockholders' equity	$ 2,069,755	$ 2,279,777

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Loans held for investment	$ 1,972,551	$ 2,126,524
Loans held for sale	20,534	38,981
Real estate, held-for-sale	14,509	0
Other assets	19,074	52,354
Payable	$ 12,637	$ 14,584
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)	54,518,727	54,149,225
Common stock, shares outstanding (in shares)	54,518,727	54,149,225
Variable Interest Entity, Primary Beneficiary
Loans held for investment	$ 741,218,000	$ 892,166,000
Loans held for sale		38,981
Real estate, held-for-sale	14,509,000
Interest receivable	2,484,000	3,690,000
Other assets		32,002,000
Payable	$ 1,779,000	$ 2,263,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenue:
Interest income	$ 40,847	$ 51,941	$ 84,880	$ 101,441
Interest expense	(27,483)	(26,951)	(56,302)	(49,950)
Net interest margin	13,364	24,990	28,578	51,491
Revenue from real estate owned	3,433	0	6,910	0
Total revenue	16,797	24,990	35,488	51,491
Expenses:
Management and incentive fees to affiliate	2,692	3,334	5,460	6,344
Professional fees	757	626	1,290	1,397
General and administrative expenses	1,957	2,038	4,038	3,723
General and administrative expenses reimbursed to affiliate	1,277	1,109	2,409	1,842
Expenses from real estate owned	2,226	0	4,262	0
Total expenses	8,909	7,107	17,459	13,306
Provision for current expected credit losses	(2,374)	20,127	(24,643)	41,146
Realized losses on loans	16,387	0	62,113	5,613
Change in unrealized losses on loans held for sale	0	0	(995)	0
Income (loss) before income taxes	(6,125)	(2,244)	(18,446)	(8,574)
Income tax expense (benefit), including excise tax	0	(46)	2	64
Net income (loss) attributable to common stockholders	$ (6,125)	$ (2,198)	$ (18,448)	$ (8,638)
Earnings (loss) per common share:
Basic earnings (loss) per common share (in dollars per share)	$ (0.11)	$ (0.04)	$ (0.34)	$ (0.16)
Diluted earnings (loss) per common share (in dollars per share)	$ (0.11)	$ (0.04)	$ (0.34)	$ (0.16)
Weighted average number of common shares outstanding:
Basic weighted average shares of common stock outstanding (in shares)	54,426,112	54,347,204	54,411,255	54,468,752
Diluted weighted average shares of common stock outstanding (in shares)	54,426,112	54,347,204	54,411,255	54,468,752
Dividends per share amount declared (in dollars per share)	$ 0.25	$ 0.35	$ 0.50	$ 0.70

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income (loss) attributable to common stockholders	$ (6,125)	$ (2,198)	$ (18,448)	$ (8,638)
Other comprehensive income (loss):
Realized and unrealized gains (losses) on derivative financial instruments	0	(2,099)	0	(6,576)
Unrealized gains (losses) on available-for-sale debt securities	(41)	(43)	40	22
Comprehensive income (loss)	$ (6,166)	$ (4,340)	$ (18,408)	$ (15,192)

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Earnings (Deficit)
Beginning balance (in shares) at Dec. 31, 2022		54,443,983,000
Beginning balance at Dec. 31, 2022	$ 747,540	$ 537	$ 812,788	$ 7,541	$ (73,326)
Increase (Decrease) in Stockholders' Equity
Stock-based compensation (in shares)		162,843,000
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		54,606,826,000
Ending balance at Mar. 31, 2023	718,303	$ 537	813,748	3,129	(99,111)
Beginning balance (in shares) at Dec. 31, 2022		54,443,983,000
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		54,136,273,000
Ending balance at Jun. 30, 2023	691,191	$ 532	810,161	987	(120,489)
Beginning balance (in shares) at Mar. 31, 2023		54,606,826,000
Beginning balance at Mar. 31, 2023	718,303	$ 537	813,748	3,129	(99,111)
Increase (Decrease) in Stockholders' Equity
Offering costs	4		4
Stock-based compensation (in shares)		65,412,000
Stock‑based compensation	1,004		1,004
Repurchase and retirement of common stock (in shares)		(535,965,000)
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		54,136,273,000
Ending balance at Jun. 30, 2023	691,191	$ 532	810,161	987	(120,489)
Increase (Decrease) in Stockholders' Equity
Stock‑based compensation	986		986
Other comprehensive income (loss)	(321)			(321)
Net income (loss)	9,184				9,184
Dividends declared	(18,082)				(18,082)
Ending balance (in shares) at Sep. 30, 2023		54,136,273,000
Ending balance at Sep. 30, 2023	682,958	$ 532	811,147	666	(129,387)
Increase (Decrease) in Stockholders' Equity
Offering costs	4		4
Stock-based compensation (in shares)		12,952,000
Stock‑based compensation	1,041		1,041
Other comprehensive income (loss)	(513)			(513)
Net income (loss)	(39,414)				(39,414)
Dividends declared	$ (18,219)				(18,219)
Ending balance (in shares) at Dec. 31, 2023	54,149,225	54,149,225,000
Ending balance at Dec. 31, 2023	$ 625,849	$ 532	812,184	153	(187,020)
Increase (Decrease) in Stockholders' Equity
Stock-based compensation (in shares)		273,388,000
Stock‑based compensation	1,284		1,284
Other comprehensive income (loss)	81			81
Net income (loss)	(12,323)				(12,323)
Dividends declared	(13,802)				(13,802)
Ending balance (in shares) at Mar. 31, 2024		54,422,613,000
Ending balance at Mar. 31, 2024	$ 601,089	$ 532	813,468	234	(213,145)
Beginning balance (in shares) at Dec. 31, 2023	54,149,225	54,149,225,000
Beginning balance at Dec. 31, 2023	$ 625,849	$ 532	812,184	153	(187,020)
Increase (Decrease) in Stockholders' Equity
Net income (loss)	$ (18,448)
Ending balance (in shares) at Jun. 30, 2024	54,518,727	54,518,727,000
Ending balance at Jun. 30, 2024	$ 582,263	$ 532	814,620	193	(233,082)
Beginning balance (in shares) at Mar. 31, 2024		54,422,613,000
Beginning balance at Mar. 31, 2024	601,089	$ 532	813,468	234	(213,145)
Increase (Decrease) in Stockholders' Equity
Stock-based compensation (in shares)		96,114,000
Stock‑based compensation	1,152		1,152
Other comprehensive income (loss)	(41)			(41)
Net income (loss)	(6,125)				(6,125)
Dividends declared	$ (13,812)				(13,812)
Ending balance (in shares) at Jun. 30, 2024	54,518,727	54,518,727,000
Ending balance at Jun. 30, 2024	$ 582,263	$ 532	$ 814,620	$ 193	$ (233,082)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Operating activities:
Net income (loss)	$ (18,448)	$ (8,638)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Amortization of deferred financing costs	2,379	1,901
Accretion of discounts, deferred loan origination fees and costs	(2,476)	(3,402)
Stock-based compensation	2,436	1,965
Depreciation and amortization of real estate owned	1,556	0
Provision for current expected credit losses	(24,643)	41,146
Realized losses on loans	62,113	5,613
Change in unrealized losses on loans held for sale	(995)	0
Amortization of derivative financial instruments	0	(723)
Changes in operating assets and liabilities:
Other assets	(1,448)	(15,707)
Due to affiliate	391	(774)
Other liabilities	(820)	1,775
Net cash provided by (used in) operating activities	20,045	23,156
Investing activities:
Issuance of and fundings on loans held for investment	(23,099)	(93,891)
Principal collections and cost-recovery proceeds on loans held for investment	117,180	145,335
Proceeds from sale of loans held for sale	38,981	37,200
Receipt of origination and other loan fees	659	658
Net cash provided by (used in) investing activities	133,721	89,302
Financing activities:
Proceeds from secured funding agreements	12,781	14,960
Payment of secured funding costs	(2,622)	(1,001)
Repayments of debt of consolidated VIEs	(135,055)	(42,865)
Dividends paid	(32,019)	(38,693)
Repurchase of common stock	0	(4,600)
Net cash provided by (used in) financing activities	(193,576)	(111,133)
Change in cash and cash equivalents	(39,810)	1,325
Cash and cash equivalents, beginning of period	110,459	141,278
Cash and cash equivalents, end of period	70,649	142,603
Supplemental disclosure of noncash investing and financing activities:
Dividends declared, but not yet paid	13,812	19,180
Other receivables related to consolidated VIEs	0	87,950
Assumption of real estate owned	14,509	0
Assumption of other assets related to real estate owned	993	0
Assumption of other liabilities related to real estate owned	1,060	0
Transfer of senior mortgage loan to real estate owned	30,828	0
Secured funding agreements
Financing activities:
Repayments of secured funding agreements	(26,661)	(38,934)
Secured term loan
Financing activities:
Repayments of secured funding agreements	$ (10,000)	$ 0

ORGANIZATION

ORGANIZATION	6 Months Ended
ORGANIZATION	Jun. 30, 2024
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 (the “IPO”) 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
SIGNIFICANT ACCOUNTING POLICIES	Jun. 30, 2024
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, 2023 filed with the SEC. Refer to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 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, 2024. 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, 2024, however, uncertainty over the global economy and the Company’s business, makes any estimates and assumptions as of June 30, 2024 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 15 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 purchase discounts, deferred loan fees and origination costs and cost-recovery proceeds (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 reduce loan carrying value 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” or “CECL Reserves”). 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 if there is an intent to sell the investment prior to maturity or payoff. Investments held for sale are carried at the lower of carrying value or fair value within loans held for sale in the Company’s consolidated balance sheets, with changes in fair value recorded through earnings. Real Estate Owned Held for Investment Real estate assets held for investment are carried at their estimated fair value at acquisition and are presented net of accumulated depreciation or amortization and impairment charges. The Company allocates the purchase price of acquired real estate assets held for investment based on the fair value of the acquired land, buildings and improvements, furniture, fixtures and equipment, intangible assets and intangible liabilities, as applicable. Real estate assets held for investment are depreciated or amortized using the straight-line method over estimated useful lives of up to 40 years for buildings and improvements, up to 15 years for furniture, fixtures and equipment and over the lease terms for intangible assets and liabilities. 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. Other than amortization related to intangible assets and liabilities for above-market or below-market leases, depreciation or amortization expense related to real estate assets held for investment is included within expenses from real estate owned in the Company’s consolidated statements of operations. Amortization for above-market or below-market leases is recognized as an adjustment to rental revenue and is included within revenue from real estate owned in the Company’s consolidated statements of operations. Real estate assets held for investment 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. Real Estate Owned Held for Sale 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, in accordance with FASB ASC Topic 360, Property, Plant and Equipment , 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 reduce amortized cost basis 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 debt securitizations are each included as a reduction to the carrying amount of the liability, in the Company’s consolidated balance sheets. 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 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 mixed-use property and an office property, which are both classified as real estate owned and were acquired in September 2023 and June 2024, respectively. Revenue from the operation of the mixed-use and office properties consists primarily of rental revenue from operating leases. For each operating lease with scheduled rent increases over the term of the lease, the Company recognizes rental revenue on a straight-line basis over the lease term when collectability of the lease payment is probable. Variable lease payments are recognized as rental revenue in the period when the changes in facts and circumstances on which the variable lease payments are based occur. Certain of the Company’s mixed-use and office property leases also contain provisions for tenants to reimburse the Company for property operating expenses. Such reimbursements are included in rental revenue on a gross basis. Rental revenue also includes amortization of intangible assets and liabilities related to above- and below-market leases. 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 and the Secured Term Loan (each individually defined in Note 6 included in these consolidated financial statements) in net interest margin. For the three and six months ended June 30, 2024 and 2023, interest expense is comprised of the following ($ in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2024 2023 2024 2023 Secured funding agreements $ 12,743 $ 13,081 $ 25,620 $ 25,392 Notes payable 1,997 1,904 3,996 3,663 Securitization debt 10,897 12,428 23,084 24,034 Secured term loan 1,846 1,754 3,602 3,488 Other (1) — (2,216) — (6,627) Interest expense $ 27,483 $ 26,951 $ 56,302 $ 49,950 ______________________________ (1) Represents the net interest expense recognized from the Company’s derivative financial instruments upon periodic settlement. Comprehensive Income (Loss)

LOANS HELD FOR INVESTMENT

LOANS HELD FOR INVESTMENT	6 Months Ended
LOANS HELD FOR INVESTMENT	Jun. 30, 2024
Receivables [Abstract]
LOANS HELD FOR INVESTMENT	LOANS HELD FOR INVESTMENT As of June 30, 2024, the Company’s portfolio included 42 loans held for investment, excluding 172 loans that were repaid, sold, converted to real estate owned or transferred to held for sale since inception. The aggregate originated commitment under these loans at closing was approximately $2.2 billion and outstanding principal was $2.0 billion as of June 30, 2024. During the six months ended June 30, 2024, the Company funded approximately $25.3 million of outstanding principal, received repayments of $79.3 million of outstanding principal, converted one loan with outstanding principal of $33.2 million to real estate owned and transferred one loan with outstanding principal of $20.6 million to held for sale. As of June 30, 2024, 69.1% of the Company’s loans have Secured Overnight Financing Rate (“SOFR”) floors, with a weighted average floor of 1.17%, calculated based on loans with SOFR floors. References to SOFR or “S” are to 30-day SOFR (unless otherwise specifically stated). The Company’s investments in loans held for investment are accounted for at amortized cost. The following tables summarize the Company’s loans held for investment as of June 30, 2024 and December 31, 2023 ($ in thousands): As of June 30, 2024 Carrying Amount (1) Outstanding Principal (1) Weighted Average Unleveraged Effective Yield Weighted Average Remaining Life (Years) Senior mortgage loans $ 1,949,312 $ 1,979,070 7.7 % (2) 9.3 % (3) 1.0 Subordinated debt and preferred equity investments 23,239 28,365 — % (2) — % (3) 2.0 Total loans held for investment portfolio $ 1,972,551 $ 2,007,435 7.6 % (2) 9.3 % (3) 1.0 As of December 31, 2023 Carrying Amount (1) Outstanding Principal (1) Weighted Average Unleveraged Effective Yield Weighted Average Remaining Life (Years) Senior mortgage loans $ 2,090,146 $ 2,118,947 7.5 % (2) 9.3 % (3) 1.1 Subordinated debt and preferred equity investments 36,378 39,098 8.1 % (2) 15.3 % (3) 1.8 Total loans held for investment portfolio $ 2,126,524 $ 2,158,045 7.5 % (2) 9.4 % (3) 1.1 ______________________________ (1) The difference between the Carrying Amount and the Outstanding Principal amount of the loans held for investment consists of unamortized purchase discounts, deferred loan fees and origination costs and cost-recovery proceeds. (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, 2024 and December 31, 2023 as weighted by the total 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, 2024 and December 31, 2023 as weighted by the total outstanding principal balance of each interest accruing loan (excludes loans on non-accrual status as of June 30, 2024 and December 31, 2023). A more detailed listing of the Company’s loans held for investment portfolio based on information available as of June 30, 2024 is as follows ($ in millions): 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 $161.4 $154.0 (5) 7.6% (5) Mar 2025 I/O Multifamily NY 132.2 131.6 S+3.90% 9.7% Jun 2025 I/O Office Diversified 108.9 108.7 S+3.75% 9.3% Jan 2025 P/I (6) Residential/Condo NY 101.7 90.2 S+8.95% —% (7) Dec 2025 (7) I/O Industrial IL 100.7 100.7 S+4.65% 11.6% Nov 2024 (8) I/O Multifamily TX 97.5 95.4 S+3.00% (9) —% (9) Jul 2025 I/O Mixed-use NY 77.2 77.2 S+3.75% 9.5% Jul 2024 I/O Residential/Condo FL 75.0 75.0 S+5.35% 10.7% Jul 2024 I/O Office AZ 73.2 73.1 S+3.61% 9.4% Oct 2024 I/O Office NC 70.6 70.5 S+3.65% 9.0% Aug 2028 (10) I/O Office NC 68.6 64.9 S+4.35% —% (11) May 2024 (11) P/I (6) Multifamily TX 68.4 68.3 S+2.95% 8.7% Dec 2024 I/O Multifamily/Office SC 67.0 67.0 S+3.00% 8.6% Nov 2024 I/O Office NY 59.0 59.0 S+2.65% 8.0% (12) Jul 2027 (12) I/O Multifamily OH 57.0 56.6 S+3.05% 8.8% Oct 2026 I/O Office IL 56.0 55.9 S+4.25% 10.1% Jan 2025 I/O Hotel CA 55.0 54.8 S+4.20% 10.0% Mar 2025 I/O Hotel NY 53.6 53.3 S+4.40% 10.1% Mar 2026 I/O Office MA 51.4 51.0 S+3.75% 9.7% Apr 2026 (13) I/O Office GA 48.3 48.2 S+3.15% 8.8% Dec 2024 P/I (6) Industrial MA 47.4 47.2 S+2.90% 8.4% Jun 2028 I/O Mixed-use TX 35.3 35.3 S+3.85% 9.5% Sep 2024 I/O Multifamily CA 31.7 31.6 S+3.00% 8.6% Dec 2025 I/O Multifamily PA 28.2 28.2 S+2.50% 7.8% Dec 2025 I/O Industrial NJ 27.8 27.7 S+3.85% 11.3% Aug 2024 (14) I/O Industrial FL 25.5 25.4 S+3.00% 8.6% Dec 2025 I/O Multifamily WA 23.1 23.0 S+3.00% 8.5% Nov 2025 I/O Multifamily TX 23.1 23.1 S+2.60% 8.3% Oct 2024 I/O Office CA 20.3 20.3 S+3.50% 9.1% Nov 2025 P/I (6) Industrial CA 19.6 18.2 S+3.85% —% (15) Sep 2024 I/O Student Housing AL 19.5 19.4 S+3.95% 10.6% Dec 2024 (16) P/I (6) Self Storage PA 18.2 18.1 S+3.00% 8.6% Dec 2025 I/O Self Storage NJ 17.6 17.5 S+2.90% 9.0% Apr 2025 I/O Self Storage WA 11.5 11.5 S+2.90% 9.0% Mar 2025 I/O Self Storage IN 10.7 10.7 S+3.60% 9.1% Jun 2026 I/O Industrial TX 10.0 10.0 S+5.35% 11.1% Dec 2024 I/O Self Storage MA 7.7 7.7 S+3.00% 8.5% Nov 2024 I/O Self Storage MA 6.8 6.7 S+3.00% 8.5% Oct 2024 I/O Industrial TN 6.4 6.4 S+5.60% 11.3% Nov 2024 I/O Self Storage NJ 5.9 5.9 S+3.00% 8.8% Jul 2025 (17) I/O Subordinated Debt and Preferred Office NJ 18.5 15.7 12.00% —% (18) Jan 2026 I/O Office NY 9.9 7.6 5.50% —% (12) Jul 2027 (12) I/O Total/Weighted Average $2,007.4 $1,972.6 7.6% _________________________ (1) The difference between the Carrying Amount and the Outstanding Principal amount of the loans held for investment consists of unamortized purchase discounts, deferred loan fees and origination costs and cost-recovery proceeds. For the loans held for investment that represent co-investments with other investment vehicles managed by Ares Management (see Note 13 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, 2024 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, 2024 as weighted by the outstanding principal balance of each loan. (3) Reflects the initial loan maturity date excluding any contractual extension options. 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 $47.4 million as of June 30, 2024, was on non-accrual status as of June 30, 2024 and therefore, the Unleveraged Effective Yield presented is for the senior position only as the mezzanine position is non-interest accruing. As of June 30, 2024, 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 $68.6 million as of June 30, 2024. In January 2023, amortization began on the senior Georgia loan, which had an outstanding principal balance of $48.3 million as of June 30, 2024. In February 2023, amortization began on the senior diversified loan, which had an outstanding principal balance of $108.9 million as of June 30, 2024. In December 2023, amortization began on the senior California loan, which had an outstanding principal balance of $20.3 million as of June 30, 2024. In June 2024, amortization began on the senior Alabama loan, which had an outstanding principal balance of $19.5 million as of June 30, 2024. The remainder of the loans in the Company’s portfolio are non-amortizing through their primary terms. (7) The New York loan is structured as both a senior and mezzanine loan with the Company holding both positions. The senior and mezzanine positions each have a per annum interest rate of S + 8.95%. The senior and mezzanine loans were both on non-accrual status as of June 30, 2024 and the Unleveraged Effective Yield is not applicable. In March 2024, the Company and the borrower entered into a modification and extension agreement to, among other things, extend the maturity date on the New York loan from April 2024 to December 2025. (8) In May 2024, 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 May 2024 to November 2024. (9) Loan was on non-accrual status as of June 30, 2024 and the Unleveraged Effective Yield is not applicable. In March 2024, the Company and the borrower entered into a modification agreement to, among other things, reduce the interest rate on the senior Texas loan from S+3.50% to S+3.00%. For both the three and six months ended June 30, 2024, the Company received $1.7 million of interest payments in cash on the senior Texas loan that was recognized as a reduction to the carrying value of the loan and the borrower is current on all contractual interest payments. (10) In June 2024, 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 August 2024 to August 2028. (11) Loan was on non-accrual status as of June 30, 2024 and the Unleveraged Effective Yield is not applicable. In March 2024, 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 2024 to May 2024. As of June 30, 2024, the senior North Carolina loan, which is collateralized by an office property, is in maturity default due to the failure of the borrower to repay the outstanding principal balance of the loan by the May 2024 maturity date. The Company is in the process of acquiring legal title to the property. Once legal title of the property is acquired, the Company will derecognize the senior North Carolina loan and recognize the office property as real estate owned. For the three and six months ended June 30, 2024, the Company received $572 thousand and $2.3 million, respectively, of interest payments in cash on the senior North Carolina loan that was recognized as a reduction to the carrying value of the loan. (12) In March 2024, the Company and the borrower entered into a modification and extension agreement to, among other things, split the existing senior New York loan, which was on non-accrual status and had an outstanding principal balance of $73.8 million at the time of the modification, into a senior A-Note with an outstanding principal balance of $60.0 million and a subordinated B-Note with an outstanding principal balance of $13.8 million. In conjunction with the modification, the borrower repaid the outstanding principal of the senior A-Note down to $59.0 million and the subordinated B-Note down to $9.8 million. The subordinated B-Note is subordinate to new sponsor equity related to the loan paydown and additional capital contributions. In addition, the maturity date of the senior A-Note and the subordinated B-Note was extended from August 2025 to July 2027. The senior A-Note has a per annum interest rate of S + 2.65% and the subordinated B-Note has a fixed per annum interest rate of 5.50%. During the six months ended June 30, 2024, the senior A-Note, which had an outstanding principal balance of $59.0 million as of June 30, 2024, was restored to accrual status. As of June 30, 2024, the subordinated B-Note, which had an outstanding principal balance of $9.9 million, was on non-accrual status and therefore, the Unleveraged Effective Yield is not applicable. As of June 30, 2024, the borrower is current on all contractual interest payments for the senior A-Note and the subordinated B-Note. (13) In June 2024, the Company and the borrower entered into a modification and extension agreement to, among other things, extend the maturity date on the senior Massachusetts loan from April 2025 to April 2026. (14) In May 2024, the Company and the borrower entered into a modification and extension agreement to, among other things, extend the maturity date on the senior New Jersey loan from May 2024 to August 2024. (15) Loan was on non-accrual status as of June 30, 2024 and the Unleveraged Effective Yield is not applicable. For the three and six months ended June 30, 2024, the Company received $459 thousand and $913 thousand, 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 May 2024, the Company and the borrower entered into a modification and extension agreement to, among other things, extend the maturity date on the senior Alabama loan from May 2024 to December 2024. (17) In May 2024, the borrower exercised a 12-month extension option in accordance with the loan agreement, which extended the maturity date on the senior New Jersey loan to July 2025. (18) Loan was on non-accrual status as of June 30, 2024 and the Unleveraged Effective Yield is not applicable. The mezzanine New Jersey loan is currently in default due to the borrower not making its contractual interest payments due subsequent to the December 2023 interest payment date. For the three and six months ended June 30, 2024, the Company received $185 thousand and $222 thousand, respectively, of interest payments in cash on the mezzanine New Jersey loan that was recognized as a reduction to the carrying value of the loan. The Company has made, and may continue to make, modifications to loans, including loans that are in default. Loan terms that may be modified include interest rates, required prepayments, asset release prices, maturity dates, covenants, principal amounts and other loan terms. The terms and conditions of each modification vary based on individual circumstances and will be determined on a case by case basis. The Company’s Manager monitors and evaluates each of the Company’s loans held for investment and is maintaining regular communications with borrowers and sponsors regarding the potential impacts of current macroeconomic conditions on the Company’s loans. For the six months ended June 30, 2024, the activity in the Company’s loan portfolio was as follows ($ in thousands): Balance at December 31, 2023 $ 2,126,524 Initial funding — Origination and other loan fees and discounts, net of costs (659) Additional funding 25,313 Amortizing payments (6,644) Loan payoffs (1) (123,265) Loans transferred to held for sale (2) (20,534) Loans converted to real estate owned (see Note 5) (30,647) Origination and other loan fees and discount accretion 2,463 Balance at June 30, 2024 $ 1,972,551 _________________________ (1) Amount includes the carrying value of certain loans where the carrying value exceeded the net proceeds received from the payoff of the loan. In February 2024, the Company received a discounted payoff on a senior mortgage loan with outstanding principal of $18.8 million, which was collateralized by a multifamily property located in Washington, in conjunction with a short sale of the multifamily property by the borrower to a third party. At the time of the discounted payoff, the senior mortgage loan was in default due to the failure of the borrower to repay the outstanding principal balance of the loan by the September 2023 maturity date. For the six months ended June 30, 2024, the Company recognized a realized loss of $1.7 million in the Company’s consolidated statements of operations as the carrying value of the senior mortgage loan exceeded the net proceeds from the payoff of the loan. In addition, in March 2024, the Company received a discounted payoff on a senior mortgage loan with outstanding principal of $56.9 million, which was collateralized by an office property located in Illinois, in conjunction with a short sale of the office property by the borrower to a third party. At the time of the discounted payoff, the senior mortgage loan was in default due to the failure of the borrower to repay the outstanding principal balance of the loan by the February 2024 maturity date. For the six months ended June 30, 2024, the Company recognized a realized loss of $43.1 million in the Company’s consolidated statements of operations as the carrying value of the senior mortgage loan exceeded the net proceeds from the payoff of the loan. (2) As of June 30, 2024, the Company intended to sell a mezzanine loan on a multifamily property located in South Carolina with outstanding principal of $20.6 million to a third party and the loan was reclassified from held for investment to held for sale and is carried at the lower of carrying value or fair value in the Company’s consolidated balance sheets. As of June 30, 2024, the sale had not yet closed. The Company did not recognize any gain or loss upon reclassifying the loan to held for sale as the carrying value was equal to fair value as determined by the anticipated transaction price with the third party. The mezzanine loan was previously classified as held for investment and is being sold in order to rebalance and optimize the Company’s loan portfolio. Except as described in the table above listing the Company’s loans held for investment portfolio, as of June 30, 2024, all loans held for investment were paying in accordance with their contractual terms. As of June 30, 2024, the Company had seven loans held for investment on non-accrual status with a carrying value of $331.9 million. As of December 31, 2023, the Company had nine loans held for investment on non-accrual status with a carrying value of $399.3 million.

CURRENT EXPECTED CREDIT LOSSES

CURRENT EXPECTED CREDIT LOSSES	6 Months Ended
CURRENT EXPECTED CREDIT LOSSES	Jun. 30, 2024
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, 2024 decreased compared to the current estimate of expected credit losses as of March 31, 2024 primarily due to a realized loss on a risk rated “5” loan and shorter average remaining loan term during the three months ended June 30, 2024. These factors were partially offset by 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, volatility and reduced liquidity in the office sector and other loan-specific factors during the three months ended June 30, 2024. 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 specifically identifiable reserve is warranted for a select asset. In certain instances, the Company may identify specific loans to be collateral dependent. The Company considers loans to be collateral dependent if both of the following criteria are met: (i) loan is expected to be substantially repaid through the operation or sale of the underlying collateral, and (ii) the borrower is experiencing financial difficulty. The determination of whether these criteria are met for an individual loan requires the use of significant judgment and can be based on several factors subject to uncertainty. For such loans that the Company determines that foreclosure of the collateral is probable, the Company estimates the CECL Reserve based on the difference between the fair value of the collateral (less costs to sell the asset if repayment is expected through the sale of the collateral) and the amortized cost basis of the loan as of the measurement date. For collateral dependent loans that the Company determines foreclosure is not probable, the Company applies a practical expedient to estimate the CECL Reserve using the difference between the collateral’s fair value (less costs to sell the asset if repayment is expected through the sale of the collateral) and the amortized cost basis of the loan. To determine the fair value of the collateral, the Company may employ different approaches depending on the type of collateral, including methods such as the income approach, the market approach or the direct capitalization approach. These methods require the use of key unobservable inputs, which are inherently uncertain and subjective. Determining the appropriate valuation method and selecting the appropriate key unobservable inputs and assumptions requires significant judgment and consideration of factors specific to the underlying collateral being assessed. Additionally, the key unobservable inputs and assumptions used may vary depending on the information available and market conditions as of the valuation date. As such, the fair value that is used in calculating the CECL Reserve is subject to uncertainty and any actual losses, if incurred, could differ materially from the CECL Reserve. As of June 30, 2024, the Company’s CECL Reserve for its loans held for investment portfolio is $138.5 million or 661 basis points of the Company’s total loans held for investment commitment balance of $2.1 billion and is bifurcated between the CECL Reserve (contra-asset) related to outstanding balances on loans held for investment of $137.4 million and a liability for unfunded commitments of $1.1 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. As of June 30, 2024, the mezzanine loan on an office property located in New Jersey with a principal balance of $18.5 million, the senior mortgage loan on an industrial property located in California with a principal balance of $19.6 million, the senior mortgage loan on a multifamily property located in Texas with a principal balance of $97.5 million and the senior mortgage loan on an office property located in North Carolina with a principal balance of $68.6 million each had a risk rating of “5.” As of June 30, 2024, each of these loans were assessed individually and the Company elected to assign CECL Reserves of $15.7 million on the New Jersey office loan, $10.9 million on the California industrial loan, $6.5 million on the Texas multifamily loan and $5.6 million on the North Carolina office loan. The CECL Reserves for each of these loans were based on the Company’s estimate of proceeds available from the potential sale of the collateral property less the estimated costs to sell the property and such CECL Reserves are included in the Company’s total CECL Reserve. Current Expected Credit Loss Reserve for Funded Loan Commitments Activity related to the CECL Reserve for outstanding balances on the Company’s loans held for investment as of and for the three and six months ended June 30, 2024 was as follows ($ in thousands): Balance at March 31, 2024 (1) $ 139,763 Provision for current expected credit losses (2,360) Write-offs — Recoveries — Balance at June 30, 2024 (1) $ 137,403 Balance at December 31, 2023 (1) $ 159,885 Provision for current expected credit losses (22,482) Write-offs — Recoveries — Balance at June 30, 2024 (1) $ 137,403 __________________________ (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, 2024 was as follows ($ in thousands): Balance at March 31, 2024 (1) $ 1,101 Provision for current expected credit losses (14) Write-offs — Recoveries — Balance at June 30, 2024 (1) $ 1,087 Balance at December 31, 2023 (1) $ 3,248 Provision for current expected credit losses (2,161) Write-offs — Recoveries — Balance at June 30, 2024 (1) $ 1,087 __________________________ (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, 2024, 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): 2024 2023 2022 2021 2020 Prior Total Risk rating: 1 $ — $ — $ 37,830 $ — $ — $ — $ 37,830 2 — 103,806 11,466 163,934 — 20,258 299,464 3 — 10,679 364,658 593,577 108,728 111,769 1,189,411 4 — — 90,174 7,586 153,960 — 251,720 5 — — 95,363 — — 98,763 194,126 Total $ — $ 114,485 $ 599,491 $ 765,097 $ 262,688 $ 230,790 $ 1,972,551 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, 2024 and December 31, 2023, interest receivable of $11.0 million and $13.0 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
REAL ESTATE OWNED	Jun. 30, 2024
Real Estate Owned [Abstract]
REAL ESTATE OWNED	REAL ESTATE OWNED On June 12, 2024, the Company acquired legal title to an office property located in California through a foreclosure. Prior to June 12, 2024, the office property collateralized a $33.2 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 2023 maturity date. In conjunction with the foreclosure, the Company derecognized the $33.2 million senior mortgage loan and recognized the office property as real estate owned. As the Company expects to complete a sale of the office property within the next twelve months, the office property is classified as real estate owned held for sale and is carried at its estimated fair value at acquisition less costs to sell. As the office property is classified as real estate owned held for sale, the Company is not depreciating or amortizing the carrying value of the office property. For both the three and six months ended June 30, 2024, the Company recognized a realized loss of $16.4 million on the derecognition of the senior mortgage loan as the estimated fair value less costs to sell of the office property at acquisition of $14.5 million and the net operating assets and liabilities held at the office property of $(67) thousand at acquisition was less than the $30.8 million cost basis of the senior mortgage loan. Certain operating assets and liabilities of the office property are included within other assets and other liabilities, respectively, in the Company’s consolidated balance sheets and include items such as prepaid expenses, rent receivables, straight-line rent receivables and payables and trade payables. As of June 30, 2024, $1.1 million of operating assets and $1.0 million of operating liabilities related to the office property that is held for sale are included in other assets and other liabilities, respectively, in the Company's consolidated balance sheets. On September 8, 2023, the Company acquired legal title to a mixed-use property located in Florida through a consensual foreclosure. Prior to September 8, 2023, the mixed-use property collateralized an $82.9 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 February 2023 maturity date. In conjunction with the consensual foreclosure, the Company derecognized the $82.9 million senior mortgage loan and recognized the mixed-use property as real estate owned. As the Company does not expect to complete a sale of the mixed-use property within the next twelve months, the mixed-use property is considered held for investment, and is carried at its estimated fair value at acquisition and is presented net of accumulated depreciation or amortization 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 mixed-use property of $84.3 million and the net operating assets and liabilities held at the mixed-use property of $(1.4) million at acquisition approximated the $82.9 million carrying value of the senior mortgage loan. Certain operating assets and liabilities of the mixed-use property are included within other assets and other liabilities, respectively, in the Company’s consolidated balance sheets and include items such as prepaid expenses, rent receivables, straight-line rent receivables and payables and trade payables. The following table summarizes the Company’s real estate owned held for investment as of June 30, 2024 and December 31, 2023 ($ in thousands): As of June 30, 2024 December 31, 2023 Land $ 21,337 $ 21,337 Buildings and improvements 52,224 52,224 In-place lease intangibles 21,276 21,276 Above-market lease intangibles 547 547 Below-market lease intangibles (11,084) (11,084) Total real estate owned held for investment 84,300 84,300 Less: Accumulated depreciation and amortization (2,572) (1,016) Real estate owned held for investment, net $ 81,728 $ 83,284 As of June 30, 2024 and December 31, 2023, no impairment charges have been recognized for real estate owned held for investment. For the three and six months ended June 30, 2024, the Company incurred net depreciation and amortization expense of $770 thousand and $1.6 million, respectively. With the exception of amortization related to intangible assets and liabilities for above-market or below-market leases, depreciation and amortization expense is included within expenses from real estate owned in the Company’s consolidated statements of operations. Amortization related to intangible assets and liabilities for above-market or below-market leases is recognized as an adjustment to rental revenue and is included within revenue from real estate owned in the Company’s consolidated statements of operations. Intangible Lease Assets and Liabilities For the six months ended June 30, 2024, there were no property acquisitions that were classified as real estate owned held for investment. The weighted average amortization period for the intangible lease assets and liabilities acquired in connection with the Company’s real estate owned held for investment during the year ended December 31, 2023 was 9.3 years as of the acquisition date. The following table summarizes the Company’s intangible lease assets and liabilities that are included within real estate owned held for investment as of June 30, 2024 and December 31, 2023 ($ in thousands): As of June 30, 2024 As of December 31, 2023 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Assets: In-place lease intangibles $ 21,276 $ (1,927) $ 19,349 $ 21,276 $ (767) $ 20,509 Above-market lease intangibles 547 (90) 457 547 (35) 512 Liabilities: Below-market lease intangibles (11,084) 836 (10,248) (11,084) 322 (10,762) The following table summarizes the amortization of intangible lease assets and liabilities related to real estate owned held for investment for the three and six months ended June 30, 2024 ($ in thousands): Consolidated Statement For the Three Months Ended June 30, 2024 For the Six Months Ended June 30, 2024 Assets: In-place lease intangibles Expenses from real estate owned $ 572 $ 1,160 Above-market lease intangibles Revenue from real estate owned (28) (56) Liabilities: Below-market lease intangibles Revenue from real estate owned 257 514 There was no amortization of intangible lease assets and liabilities for the three or six months ended June 30, 2023 as there was no real estate owned during those periods. The following table summarizes the estimated net amortization schedule for the Company’s intangible lease assets and liabilities that are included within real estate owned held for investment as of June 30, 2024 ($ in thousands): In-Place Above-Market Below-Market Lease Intangibles Lease Intangibles Lease Intangibles Remainder of 2024 $ 1,144 $ 56 $ (514) 2025 2,232 91 (1,027) 2026 1,821 76 (618) 2027 1,701 51 (571) 2028 1,603 41 (542) Thereafter 10,848 142 (6,976) Total $ 19,349 $ 457 $ (10,248) Future Minimum Lease Payments The following table summarizes the future minimum contractual lease payments to be collected by the Company under non-cancelable operating leases related to real estate owned held for investment, excluding tenant reimbursements of expenses and variable lease payments, as of June 30, 2024 ($ in thousands): Remainder of 2024 $ 5,020 2025 10,106 2026 10,224 2027 9,989 2028 9,976 Thereafter 34,332 Total $ 79,647

DEBT

DEBT	6 Months Ended
DEBT	Jun. 30, 2024
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, 2024 and December 31, 2023, the outstanding balances and total commitments under the Financing Agreements consisted of the following ($ in thousands): June 30, 2024 December 31, 2023 Outstanding Balance Total Outstanding Balance Total Secured Funding Agreements: Wells Fargo Facility $ 216,487 $ 450,000 (1) $ 208,540 $ 450,000 (1) Citibank Facility 204,104 325,000 221,604 325,000 CNB Facility — 75,000 (2) — 75,000 MetLife Facility — — (3) — 180,000 Morgan Stanley Facility 205,345 250,000 209,673 250,000 Subtotal $ 625,936 $ 1,100,000 $ 639,817 $ 1,280,000 Notes Payable $ 105,000 $ 105,000 $ 105,000 $ 105,000 Secured Term Loan $ 140,000 $ 140,000 (4) $ 150,000 $ 150,000 Total $ 870,936 $ 1,345,000 $ 894,817 $ 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. (2) Amount immediately available under the CNB Facility at any given time can fluctuate based on the fair value of the collateral in the borrowing base that secures the CNB Facility. As of June 30, 2024, there was approximately $50.0 million immediately available under the CNB Facility based on the fair value of the collateral in the borrowing base at such time. The amount immediately available under the CNB Facility may be increased to up to $75.0 million by the pledge of additional collateral into the borrowing base in accordance with the CNB Facility agreement. (3) In May 2024, the Company elected to terminate the MetLife Facility prior to its scheduled maturity in August 2024 as the facility had no outstanding balance. (4) In May 2024, the Company entered into an amendment to the Secured Term Loan (defined below) and concurrently therewith, repaid $10.0 million of outstanding principal on the Secured Term Loan at par prior to the scheduled maturity as permitted by the contractual terms of the Secured Term Loan amendment. As of June 30, 2024, the Secured Term Loan has a commitment amount of $140.0 million. 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. 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 the three and six months ended June 30, 2024 and 2023, the Company did not incur a non-utilization fee. 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. The amount immediately available under the CNB Facility at any given time can fluctuate based on the fair value of the collateral in the borrowing base that secures the CNB Facility. As of June 30, 2024, there was approximately $50.0 million immediately available under the CNB Facility based on the fair value of the collateral in the borrowing base at such time, which may be increased to up to $75.0 million by the pledge of additional collateral into the borrowing base in accordance with the CNB Facility agreement. In January 2024, the Company amended the CNB Facility to, among other things: (1) extend the initial maturity date of the CNB Facility to March 10, 2025, subject to one 12-month extension, which may be exercised at the Company's option if certain conditions described in the CNB Facility are met, including applicable extension fees being paid, which, if exercised, would extend the maturity date to March 10, 2026 and (2) set the interest rate on advances under the CNB Facility to a per annum rate equal to the sum of, at the Company's option, either (a) a SOFR-based rate plus 3.25% or (b) a base rate plus 2.25%, in each case, subject to an interest rate floor. 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, 2024, the Company incurred a non-utilization fee of $71 thousand and $142 thousand, respectively. For the three and six months ended June 30, 2023, the Company incurred a non-utilization fee of $71 thousand and $141 thousand, respectively. The non-utilization fee is included within interest expense in the Company’s consolidated statements of operations. MetLife Facility The Company was party to a $180.0 million revolving master repurchase facility with Metropolitan Life Insurance Company (“MetLife”) (the “MetLife Facility”), pursuant to which the Company was permitted to sell, and later repurchase, commercial mortgage loans meeting defined eligibility criteria which were approved by MetLife in its sole discretion. The maturity date of the MetLife Facility was August 13, 2024. On May 8, 2024, the Company elected to terminate the MetLife Facility prior to its scheduled maturity on August 13, 2024, as the facility had no outstanding balance. There were no prepayment penalties in connection with the early termination of the facility. Advances under the MetLife Facility accrued 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 was utilized, unused commitments under the MetLife Facility accrued 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, 2024, the Company incurred a non-utilization fee of $30 thousand and $104 thousand, respectively. For the three and six months ended June 30, 2023, the Company incurred a non-utilization fee of $74 thousand and $147 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 July 16, 2025, 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 July 16, 2026. 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. Notes Payable ACRC Lender CO LLC, a wholly owned subsidiary of the Company, is party to 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 (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 “CapOne Guaranty”). 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, 2024, 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 $140.0 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. In May 2024, the Company amended the Secured Term Loan to, among other things, (1) change the schedule of interest rate increases on advances under the Secured Term Loan to the following fixed rates: (i) 4.50% per annum until May 1, 2025 and (ii) after May 1, 2025 through November 12, 2026, the interest rate increases 0.25% every three months, (2) add a contingent interest rate increase of 4.00% if the outstanding principal amount of the Secured Term Loan is not paid down to the following amounts on specific dates as follows: (i) $135.0 million as of August 1, 2024, (ii) $130.0 million as of November 1, 2024, (iii) $120.0 million as of February 1, 2025, (iv) $110.0 million as of May 1, 2025, (v) $100.0 million as of August 1, 2025 and (vi) $90.0 million as of November 1, 2025 and (3) make changes to financial covenants, including reducing the minimum tangible net worth requirement and linking future determinations thereof to the outstanding principal amount of the Secured Term Loan, increasing the minimum unencumbered asset ratio requirement, reducing the maximum total net leverage ratio and increasing the senior loan concentration threshold. In connection with the amendment and concurrently therewith, the Company paid a modification fee and paid down $10.0 million of outstanding principal on the Secured Term Loan at par. As of June 30, 2024, the total outstanding principal balance of the Secured Term Loan was $140.0 million. The total original issue discount and the modification fee on the Secured Term Loan 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 the three and six months ended June 30, 2024, the 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 5.1% and 4.8%, respectively. For both the three and six months ended June 30, 2023, the per annum effective interest rate of the Secured Term Loan was 4.6%.

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS	6 Months Ended
DERIVATIVE FINANCIAL INSTRUMENTS	Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE FINANCIAL INSTRUMENTS	DERIVATIVE FINANCIAL INSTRUMENTS The Company may use derivative financial instruments, which may include 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. As of June 30, 2024 and December 31, 2023, the Company did not have any outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk. In December 2023, the Company's interest rate swap derivative expired and its term was not extended. At the expiration date, the interest rate swap derivative had a notional amount of $30.0 million. Further, 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 year ended December 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 was 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, through a reduction in interest expense on the termination of the interest rate cap within current earnings.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
COMMITMENTS AND CONTINGENCIES	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES As further discussed in Note 2 to our consolidated financial statements, the impact of the current macroeconomic conditions on the Company’s business is uncertain. As of June 30, 2024, 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, 2024 and December 31, 2023, 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, 2024 December 31, 2023 Total commitments $ 2,094,034 $ 2,274,584 Less: funded commitments (2,007,435) (2,158,045) Total unfunded commitments $ 86,599 $ 116,539 The Company from time to time may be a party to litigation relating to claims arising in the normal course of business. As of June 30, 2024, the Company is not aware of any legal claims that could materially impact its business, financial condition or results of operations.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	6 Months Ended
STOCKHOLDERS' EQUITY	Jun. 30, 2024
Stockholders' Equity Note [Abstract]
STOCKHOLDERS' EQUITY	STOCKHOLDERS’ EQUITY Stock Repurchase Program On July 25, 2023, the Company’s board of directors renewed its stock repurchase program of up to $50.0 million (the “Repurchase Program”), which was expected to be in effect until July 31, 2024, or until the approved dollar amount had been used to repurchase shares. On July 31, 2024, the Company’s board of directors further renewed the Repurchase Program of up to $50.0 million, which is expected to be in effect until July 31, 2025, 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 both the three and six months ended June 30, 2024, the Company did not repurchase any shares through the Repurchase Program. During both the three and six 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, 2024 and 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 and further amended in May 2022 (as further amended, the “Amended and Restated 2012 Equity Incentive Plan”). In April 2024, the Company’s board of directors approved, and in May 2024, the Company’s stockholders approved, the second amendment to the Amended and Restated 2012 Equity Incentive Plan, which increased the total number of shares of common stock the Company may grant thereunder to 5,015,000 shares. Pursuant to the Amended and Restated 2012 Equity Incentive Plan, as amended by the second 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, 2024: Schedule of Non-Vested Share and Share Equivalents Restricted Stock Grants—Directors RSUs—Officers and Employees of the Manager Total Balance at December 31, 2023 34,215 1,063,366 1,097,581 Granted 83,052 — 83,052 Vested (32,964) (286,450) (319,414) Forfeited — (46,163) (46,163) Balance at June 30, 2024 84,303 730,753 815,056 Future Anticipated Vesting Schedule Restricted Stock Grants—Directors RSUs—Officers and Employees of the Manager Total Remainder of 2024 42,366 4,285 46,651 2025 41,937 334,633 376,570 2026 — 258,365 258,365 2027 — 133,470 133,470 2028 — — — Total 84,303 730,753 815,056

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
EARNINGS PER SHARE	Jun. 30, 2024
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, 2024 and 2023 ($ in thousands, except share and per share data): For the Three Months Ended June 30, For the Six Months Ended June 30, 2024 2023 2024 2023 Net income (loss) attributable to common stockholders $ (6,125) $ (2,198) $ (18,448) $ (8,638) Divided by: Basic weighted average shares of common stock outstanding: 54,426,112 54,347,204 54,411,255 54,468,752 Weighted average non-vested restricted stock and RSUs (1) — — — — Diluted weighted average shares of common stock outstanding: 54,426,112 54,347,204 54,411,255 54,468,752 Basic earnings (loss) per common share $ (0.11) $ (0.04) $ (0.34) $ (0.16) Diluted earnings (loss) per common share $ (0.11) $ (0.04) $ (0.34) $ (0.16) _______________________________

INCOME TAX

INCOME TAX	6 Months Ended
INCOME TAX	Jun. 30, 2024
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, 2024 and 2023 ($ in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2024 2023 2024 2023 Current $ — $ 9 $ — $ 19 Deferred — — 2 — Excise tax — (55) — 45 Total income tax expense (benefit), including excise tax $ — $ (46) $ 2 $ 64 For the three and six months ended June 30, 2024, the Company did not incur any expense for U.S. federal excise tax. For the three and six months ended June 30, 2023, the Company incurred an expense (benefit) of $(55) thousand and $45 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, 2024, tax years 2019 through 2024 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
FAIR VALUE	Jun. 30, 2024
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 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 $27.9 million, which consisted of floating rate, investment grade rated debt securities that had a weighted average coupon of SOFR plus 2.47%. The Company’s available-for-sale debt securities have a contractual maturity greater than 10 years from the purchase date. As of both June 30, 2024 and December 31, 2023, the Company had three CRE debt security investments designated as available-for-sale debt securities. The following tables summarize the Company’s investments in available-for-sale debt securities as of June 30, 2024 and December 31, 2023 ($ in thousands): As of June 30, 2024 Face Amount Amortized Cost Unamortized Discount Unrealized Gain (Loss), Net Available-for-sale debt securities $ 28,000 $ 27,920 $ 80 $ 193 As of December 31, 2023 Face Amount Amortized Cost Unamortized Discount Unrealized Gain (Loss), Net Available-for-sale debt securities $ 28,000 $ 27,906 $ 94 $ 154 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 measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023 ($ in thousands): As of June 30, 2024 Level 1 Level 2 Level 3 Total Financial assets: Available-for-sale debt securities $ — $ 28,113 $ — $ 28,113 As of December 31, 2023 Level 1 Level 2 Level 3 Total Financial assets: Available-for-sale debt securities $ — $ 28,060 $ — $ 28,060 As of June 30, 2024 and December 31, 2023, the Company did not have any financial liabilities or nonfinancial assets or liabilities required to be recorded at fair value on a recurring basis. Nonrecurring Fair Value Measurements Loans Held for Sale The Company is required to record loans held for sale, a financial asset, at the lower of carrying value or fair value on a nonrecurring basis in accordance with GAAP. If the fair value of a loan held for sale is determined to be less than its carrying value, a nonrecurring fair value adjustment may be recorded in earnings through an unrealized loss on loans held for sale. As of both June 30, 2024 and December 31, 2023, the Company had one loan held for sale. The Company determined the fair value of the loan held for sale based on the anticipated transaction price to be received from the third party that was expected to purchase each loan. The one loan held for sale as of June 30, 2024 was transferred into Level 3 during the second quarter of 2024 with a total carrying value of $20.5 million. Upon transfer, the fair value of the loan was equal to the loan’s carrying value and no gain or loss was recognized. Real Estate Owned The Company is required to record real estate owned, a nonfinancial asset, at fair value on a nonrecurring basis in accordance with GAAP. Real estate owned consists of an office property and a mixed-use property that were acquired by the Company on June 12, 2024 and September 8, 2023, respectively, through foreclosures. See Note 5 included in these consolidated financial statements for more information on real estate owned. Real estate owned is recorded at fair value at acquisition using Level 3 inputs and is evaluated for indicators of impairment on a quarterly basis. Real estate owned is 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 office property is classified as real estate owned held for sale in the Company’s consolidated balance sheets as of the acquisition date and is carried at fair value less costs to sell. The fair value of the office property at acquisition was determined using the estimated net proceeds available from a potential sale of the property. The mixed-use property is classified as real estate owned held for investment in the Company’s consolidated balance sheets as of the acquisition date and is carried at its estimated fair value at acquisition and is presented net of accumulated depreciation or amortization and impairment charges. The fair value of the mixed-use 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 the mixed-use property, certain assumptions are made including, but not limited to: (1) projected operating cash flows, including factors such as property operating expenses and re-leasing assumptions that take into account the number of months to re-lease, market rental revenue and required tenant improvements; and (2) projected cash flows from the eventual disposition of the mixed-use property based upon the Company’s estimation of a capitalization rate, discount rates and comparable selling prices in the market. The fair value of the mixed-use property was estimated using significant unobservable inputs such as capitalization rates ranging from 6.4% to 8.3% and discount rates ranging from 8.0% to 9.5%. As of June 30, 2024 and December 31, 2023, the Company did not have any financial or nonfinancial 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, 2024 and December 31, 2023, 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, 2024 December 31, 2023 Level in Fair Value Hierarchy Carrying Value Fair Carrying Value Fair Financial assets: Loans held for investment 3 $ 1,972,551 $ 1,823,784 $ 2,126,524 $ 1,944,718 Financial liabilities: Secured funding agreements 2 $ 625,936 $ 625,936 $ 639,817 $ 639,817 Notes payable 2 104,751 105,000 104,662 105,000 Secured term loan 3 137,409 126,984 149,393 134,024 Collateralized loan obligation securitization debt (consolidated VIEs) 2 588,421 577,356 723,117 705,033 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 purchase discounts, deferred loan fees and origination costs and cost-recovery proceeds. 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 (1) for risk rated “1”, “2”, or “3” loans, on a portfolio basis and (b) for risk rated “4” or “5” loans, on an asset-by-asset basis, in each case 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
RELATED PARTY TRANSACTIONS	Jun. 30, 2024
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 9 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 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. 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, 2024, the Company did not incur any incentive fees. For both the three and six months ended June 30, 2023, the Company incurred incentive fees of $334 thousand. 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, 2025, 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, 2024 and 2023, and amounts payable to the Company’s Manager as of June 30, 2024 and December 31, 2023 ($ in thousands): Incurred Payable For the Three Months Ended June 30, For the Six Months As of 2024 2023 2024 2023 June 30, December 31, 2023 Affiliate Payments Management fees $ 2,692 $ 3,000 $ 5,460 $ 6,010 $ 2,692 $ 2,946 Incentive fees — 334 — 334 — — General and administrative expenses 1,277 1,109 2,409 1,842 1,809 1,154 Direct costs (1) 72 19 115 40 25 35 Total $ 4,041 $ 4,462 $ 7,984 $ 8,226 $ 4,526 $ 4,135 _______________________________ (1) For the three and six months ended June 30, 2024 and 2023, 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, 2024 and December 31, 2023, the total outstanding principal balance for co-investments held by the Company was $249.5 million and $236.7 million, respectively. Loan Purchases From Affiliate One or more affiliates of the Company’s Manager may originate commercial real estate loans, which may be made available for purchase by other investment vehicles, including the Company and other Ares Management managed investment vehicles. From time to time, the Company may purchase such commercial real estate loans from affiliates of the Company’s Manager. 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 and provided that the Company has sufficient liquidity. The Company is not obligated to purchase any loans originated by affiliates of the Company’s Manager. 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 affiliates of the Company’s Manager 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 Company’s independent directors. No loans were purchased by the Company from affiliates of the Company’s Manager or other Ares Management managed investment vehicles for the three and six months ended June 30, 2024 and 2023.

DIVIDENDS AND DISTRIBUTIONS

DIVIDENDS AND DISTRIBUTIONS	6 Months Ended
DIVIDENDS AND DISTRIBUTIONS	Jun. 30, 2024
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, 2024 and 2023 ($ in thousands, except per share data): Date Declared Record Date Payment Date Per Share Amount Total Amount May 9, 2024 June 28, 2024 July 16, 2024 $ 0.25 $ 13,812 February 22, 2024 March 28, 2024 April 16, 2024 0.25 13,802 Total cash dividends declared for the six months ended June 30, 2024 $ 0.50 $ 27,614 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) 19,345 Total cash dividends declared for the six months ended June 30, 2023 $ 0.70 $ 38,525 _______________________________

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES	6 Months Ended
VARIABLE INTEREST ENTITIES	Jun. 30, 2024
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, 2024, the FL3 Notes were collateralized by interests in a pool of 15 mortgage assets having a total principal balance of $469.0 million (the “FL3 Mortgage Assets”) that were closed by a wholly-owned subsidiary of the Company. As of December 31, 2023, the FL3 Notes were collateralized by interests in a pool of 16 mortgage assets having a total principal balance of $526.0 million that were closed by a wholly-owned subsidiary of the Company and $31.0 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 was able to direct the FL3 Issuer to acquire additional mortgage assets subject to certain conditions. The reinvestment period expired on March 31, 2024 and was not renewed. The contribution of the FL3 Mortgage Assets to the FL3 Issuer is governed by a Mortgage Asset Purchase Agreement between ACRC Lender LLC, a wholly owned subsidiary of the Company (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. During the three and six months ended June 30, 2024, the Company paid down $6.7 million and $37.9 million, respectively, of the FL3 Offered Notes. During the three and six months ended June 30, 2023, the Company did not pay down any of the FL3 Offered Notes. 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 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, 2024, the FL4 Notes were collateralized by interests in a pool of five mortgage assets having a total principal balance of $272.2 million (the “FL4 Mortgage Assets”) that were closed by a wholly-owned subsidiary of the Company and $14.5 million of real estate owned related to an office property, which had collateralized a previous mortgage asset, and was acquired in June 2024 through a foreclosure. As of December 31, 2023, the FL4 Notes were collateralized by interests in a pool of nine mortgage assets having a total principal balance of $404.1 million that were closed by a wholly-owned subsidiary of the Company and $1.0 million of receivables related to repayments of outstanding principal on previous mortgage assets. During the period that ended in April 2024 (the “Companion Participation Acquisition Period”), the FL4 Issuer was able to use certain principal proceeds from the FL4 Mortgage Assets to acquire additional funded pari-passu participations related to the FL4 Mortgage Assets that met certain acquisition criteria. The Companion Participation Acquisition Period expired in April 2024 and was not renewed. 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, 2024, the Company paid down $125 thousand and $97.2 million of the FL4 Offered Notes, respectively. During the three and six months ended June 30, 2023, the Company paid down $759 thousand 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, 2024, the Company’s maximum risk of loss was $166.5 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, 2024, the Company’s maximum risk of loss was $90.2 million, which represents the carrying value of its investment in the VIE.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
SUBSEQUENT EVENTS	Jun. 30, 2024
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 three months ended June 30, 2024, except as disclosed below. The Company’s board of directors declared a regular cash dividend of $0.25 per common share for the third quarter of 2024. The third quarter 2024 dividend will be payable on October 15, 2024 to common stockholders of record as of September 30, 2024. On August 2, 2024, the Company’s board of directors appointed Tae-Sik Yoon as Chief Operating Officer of the Company and Jeffrey Gonzales as Chief Financial Officer and Treasurer of the Company, each effective as of August 30, 2024. On August 2, 2024, the Company, as guarantor, and each of its wholly-owned subsidiaries, ACRC Lender C LLC and ACRC Lender MS LLC, respectively, entered into amendments to each of the Citibank Facility and the Morgan Stanley Facility, respectively, to reduce the required minimum Tangible Net Worth (as defined in each of the respective amendments to the guaranty agreement for the Citibank Facility and Morgan Stanley Facility) covenant to $500 million. On August 2, 2024, the Company, as guarantor, and its wholly-owned subsidiary, ACRC Lender LLC, entered into an amendment to the CNB Facility. The purpose of the amendment was to, among other things, (i) reduce the required minimum Tangible Net Worth (as defined in the amendment to the guaranty agreement for the CNB Facility) covenant to $500 million, (ii) increase the required minimum total Asset (as defined in the amendment to the credit agreement for the CNB Facility) value covenant to $635 million and (iii) modify the advance rate of the borrowing base in accordance with the thresholds described in the CNB Facility.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net income (loss) attributable to common stockholders	$ (6,125)	$ (12,323)	$ (39,414)	$ 9,184	$ (2,198)	$ (6,439)	$ (18,448)	$ (8,638)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jun. 30, 2024
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
SIGNIFICANT ACCOUNTING POLICIES (Policies)	Jun. 30, 2024
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, 2024.
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, 2024, however, uncertainty over the global economy and the Company’s business, makes any estimates and assumptions as of June 30, 2024 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 15 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 purchase discounts, deferred loan fees and origination costs and cost-recovery proceeds (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 reduce loan carrying value 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	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 if there is an intent to sell the investment prior to maturity or payoff. Investments held for sale are carried at the lower of carrying value or fair value within loans held for sale in the Company’s consolidated balance sheets, with changes in fair value recorded through earnings.
Real Estate Owned Held for Investment	Real Estate Owned Held for Investment Real estate assets held for investment are carried at their estimated fair value at acquisition and are presented net of accumulated depreciation or amortization and impairment charges. The Company allocates the purchase price of acquired real estate assets held for investment based on the fair value of the acquired land, buildings and improvements, furniture, fixtures and equipment, intangible assets and intangible liabilities, as applicable. Real estate assets held for investment are depreciated or amortized using the straight-line method over estimated useful lives of up to 40 years for buildings and improvements, up to 15 years for furniture, fixtures and equipment and over the lease terms for intangible assets and liabilities. 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. Other than amortization related to intangible assets and liabilities for above-market or below-market leases, depreciation or amortization expense related to real estate assets held for investment is included within expenses from real estate owned in the Company’s consolidated statements of operations. Amortization for above-market or below-market leases is recognized as an adjustment to rental revenue and is included within revenue from real estate owned in the Company’s consolidated statements of operations. Real estate assets held for investment 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. Real Estate Owned Held for Sale 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, in accordance with FASB ASC Topic 360, Property, Plant and Equipment , 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
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 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 mixed-use property and an office property, which are both classified as real estate owned and were acquired in September 2023 and June 2024, respectively. Revenue from the operation of the mixed-use and office properties consists primarily of rental revenue from operating leases. For each operating lease with scheduled rent increases over the term of the lease, the Company recognizes rental revenue on a straight-line basis over the lease term when collectability of the lease payment is probable. Variable lease payments are recognized as rental revenue in the period when the changes in facts and circumstances on which the variable lease payments are based occur. Certain of the Company’s mixed-use and office property leases also contain provisions for tenants to reimburse the Company for property operating expenses. Such reimbursements are included in rental revenue on a gross basis. Rental revenue also includes amortization of intangible assets and liabilities related to above- and below-market leases.
Net Interest Margin and Interest Expense	Net Interest Margin and Interest Expense
Comprehensive Income (Loss)	Comprehensive Income (Loss)

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
SIGNIFICANT ACCOUNTING POLICIES (Tables)	Jun. 30, 2024
Accounting Policies [Abstract]
Schedule of Interest Expense	For the three and six months ended June 30, 2024 and 2023, interest expense is comprised of the following ($ in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2024 2023 2024 2023 Secured funding agreements $ 12,743 $ 13,081 $ 25,620 $ 25,392 Notes payable 1,997 1,904 3,996 3,663 Securitization debt 10,897 12,428 23,084 24,034 Secured term loan 1,846 1,754 3,602 3,488 Other (1) — (2,216) — (6,627) Interest expense $ 27,483 $ 26,951 $ 56,302 $ 49,950 ______________________________

LOANS HELD FOR INVESTMENT (Tabl

LOANS HELD FOR INVESTMENT (Tables)	6 Months Ended
LOANS HELD FOR INVESTMENT (Tables)	Jun. 30, 2024
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, 2024 and December 31, 2023 ($ in thousands): As of June 30, 2024 Carrying Amount (1) Outstanding Principal (1) Weighted Average Unleveraged Effective Yield Weighted Average Remaining Life (Years) Senior mortgage loans $ 1,949,312 $ 1,979,070 7.7 % (2) 9.3 % (3) 1.0 Subordinated debt and preferred equity investments 23,239 28,365 — % (2) — % (3) 2.0 Total loans held for investment portfolio $ 1,972,551 $ 2,007,435 7.6 % (2) 9.3 % (3) 1.0 As of December 31, 2023 Carrying Amount (1) Outstanding Principal (1) Weighted Average Unleveraged Effective Yield Weighted Average Remaining Life (Years) Senior mortgage loans $ 2,090,146 $ 2,118,947 7.5 % (2) 9.3 % (3) 1.1 Subordinated debt and preferred equity investments 36,378 39,098 8.1 % (2) 15.3 % (3) 1.8 Total loans held for investment portfolio $ 2,126,524 $ 2,158,045 7.5 % (2) 9.4 % (3) 1.1 ______________________________ (1) The difference between the Carrying Amount and the Outstanding Principal amount of the loans held for investment consists of unamortized purchase discounts, deferred loan fees and origination costs and cost-recovery proceeds. (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, 2024 and December 31, 2023 as weighted by the total outstanding principal balance of each loan. (3)
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, 2024 is as follows ($ in millions): 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 $161.4 $154.0 (5) 7.6% (5) Mar 2025 I/O Multifamily NY 132.2 131.6 S+3.90% 9.7% Jun 2025 I/O Office Diversified 108.9 108.7 S+3.75% 9.3% Jan 2025 P/I (6) Residential/Condo NY 101.7 90.2 S+8.95% —% (7) Dec 2025 (7) I/O Industrial IL 100.7 100.7 S+4.65% 11.6% Nov 2024 (8) I/O Multifamily TX 97.5 95.4 S+3.00% (9) —% (9) Jul 2025 I/O Mixed-use NY 77.2 77.2 S+3.75% 9.5% Jul 2024 I/O Residential/Condo FL 75.0 75.0 S+5.35% 10.7% Jul 2024 I/O Office AZ 73.2 73.1 S+3.61% 9.4% Oct 2024 I/O Office NC 70.6 70.5 S+3.65% 9.0% Aug 2028 (10) I/O Office NC 68.6 64.9 S+4.35% —% (11) May 2024 (11) P/I (6) Multifamily TX 68.4 68.3 S+2.95% 8.7% Dec 2024 I/O Multifamily/Office SC 67.0 67.0 S+3.00% 8.6% Nov 2024 I/O Office NY 59.0 59.0 S+2.65% 8.0% (12) Jul 2027 (12) I/O Multifamily OH 57.0 56.6 S+3.05% 8.8% Oct 2026 I/O Office IL 56.0 55.9 S+4.25% 10.1% Jan 2025 I/O Hotel CA 55.0 54.8 S+4.20% 10.0% Mar 2025 I/O Hotel NY 53.6 53.3 S+4.40% 10.1% Mar 2026 I/O Office MA 51.4 51.0 S+3.75% 9.7% Apr 2026 (13) I/O Office GA 48.3 48.2 S+3.15% 8.8% Dec 2024 P/I (6) Industrial MA 47.4 47.2 S+2.90% 8.4% Jun 2028 I/O Mixed-use TX 35.3 35.3 S+3.85% 9.5% Sep 2024 I/O Multifamily CA 31.7 31.6 S+3.00% 8.6% Dec 2025 I/O Multifamily PA 28.2 28.2 S+2.50% 7.8% Dec 2025 I/O Industrial NJ 27.8 27.7 S+3.85% 11.3% Aug 2024 (14) I/O Industrial FL 25.5 25.4 S+3.00% 8.6% Dec 2025 I/O Multifamily WA 23.1 23.0 S+3.00% 8.5% Nov 2025 I/O Multifamily TX 23.1 23.1 S+2.60% 8.3% Oct 2024 I/O Office CA 20.3 20.3 S+3.50% 9.1% Nov 2025 P/I (6) Industrial CA 19.6 18.2 S+3.85% —% (15) Sep 2024 I/O Student Housing AL 19.5 19.4 S+3.95% 10.6% Dec 2024 (16) P/I (6) Self Storage PA 18.2 18.1 S+3.00% 8.6% Dec 2025 I/O Self Storage NJ 17.6 17.5 S+2.90% 9.0% Apr 2025 I/O Self Storage WA 11.5 11.5 S+2.90% 9.0% Mar 2025 I/O Self Storage IN 10.7 10.7 S+3.60% 9.1% Jun 2026 I/O Industrial TX 10.0 10.0 S+5.35% 11.1% Dec 2024 I/O Self Storage MA 7.7 7.7 S+3.00% 8.5% Nov 2024 I/O Self Storage MA 6.8 6.7 S+3.00% 8.5% Oct 2024 I/O Industrial TN 6.4 6.4 S+5.60% 11.3% Nov 2024 I/O Self Storage NJ 5.9 5.9 S+3.00% 8.8% Jul 2025 (17) I/O Subordinated Debt and Preferred Office NJ 18.5 15.7 12.00% —% (18) Jan 2026 I/O Office NY 9.9 7.6 5.50% —% (12) Jul 2027 (12) I/O Total/Weighted Average $2,007.4 $1,972.6 7.6% _________________________ (1) The difference between the Carrying Amount and the Outstanding Principal amount of the loans held for investment consists of unamortized purchase discounts, deferred loan fees and origination costs and cost-recovery proceeds. For the loans held for investment that represent co-investments with other investment vehicles managed by Ares Management (see Note 13 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, 2024 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, 2024 as weighted by the outstanding principal balance of each loan. (3) Reflects the initial loan maturity date excluding any contractual extension options. 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 $47.4 million as of June 30, 2024, was on non-accrual status as of June 30, 2024 and therefore, the Unleveraged Effective Yield presented is for the senior position only as the mezzanine position is non-interest accruing. As of June 30, 2024, 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 $68.6 million as of June 30, 2024. In January 2023, amortization began on the senior Georgia loan, which had an outstanding principal balance of $48.3 million as of June 30, 2024. In February 2023, amortization began on the senior diversified loan, which had an outstanding principal balance of $108.9 million as of June 30, 2024. In December 2023, amortization began on the senior California loan, which had an outstanding principal balance of $20.3 million as of June 30, 2024. In June 2024, amortization began on the senior Alabama loan, which had an outstanding principal balance of $19.5 million as of June 30, 2024. The remainder of the loans in the Company’s portfolio are non-amortizing through their primary terms. (7) The New York loan is structured as both a senior and mezzanine loan with the Company holding both positions. The senior and mezzanine positions each have a per annum interest rate of S + 8.95%. The senior and mezzanine loans were both on non-accrual status as of June 30, 2024 and the Unleveraged Effective Yield is not applicable. In March 2024, the Company and the borrower entered into a modification and extension agreement to, among other things, extend the maturity date on the New York loan from April 2024 to December 2025. (8) In May 2024, 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 May 2024 to November 2024. (9) Loan was on non-accrual status as of June 30, 2024 and the Unleveraged Effective Yield is not applicable. In March 2024, the Company and the borrower entered into a modification agreement to, among other things, reduce the interest rate on the senior Texas loan from S+3.50% to S+3.00%. For both the three and six months ended June 30, 2024, the Company received $1.7 million of interest payments in cash on the senior Texas loan that was recognized as a reduction to the carrying value of the loan and the borrower is current on all contractual interest payments. (10) In June 2024, 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 August 2024 to August 2028. (11) Loan was on non-accrual status as of June 30, 2024 and the Unleveraged Effective Yield is not applicable. In March 2024, 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 2024 to May 2024. As of June 30, 2024, the senior North Carolina loan, which is collateralized by an office property, is in maturity default due to the failure of the borrower to repay the outstanding principal balance of the loan by the May 2024 maturity date. The Company is in the process of acquiring legal title to the property. Once legal title of the property is acquired, the Company will derecognize the senior North Carolina loan and recognize the office property as real estate owned. For the three and six months ended June 30, 2024, the Company received $572 thousand and $2.3 million, respectively, of interest payments in cash on the senior North Carolina loan that was recognized as a reduction to the carrying value of the loan. (12) In March 2024, the Company and the borrower entered into a modification and extension agreement to, among other things, split the existing senior New York loan, which was on non-accrual status and had an outstanding principal balance of $73.8 million at the time of the modification, into a senior A-Note with an outstanding principal balance of $60.0 million and a subordinated B-Note with an outstanding principal balance of $13.8 million. In conjunction with the modification, the borrower repaid the outstanding principal of the senior A-Note down to $59.0 million and the subordinated B-Note down to $9.8 million. The subordinated B-Note is subordinate to new sponsor equity related to the loan paydown and additional capital contributions. In addition, the maturity date of the senior A-Note and the subordinated B-Note was extended from August 2025 to July 2027. The senior A-Note has a per annum interest rate of S + 2.65% and the subordinated B-Note has a fixed per annum interest rate of 5.50%. During the six months ended June 30, 2024, the senior A-Note, which had an outstanding principal balance of $59.0 million as of June 30, 2024, was restored to accrual status. As of June 30, 2024, the subordinated B-Note, which had an outstanding principal balance of $9.9 million, was on non-accrual status and therefore, the Unleveraged Effective Yield is not applicable. As of June 30, 2024, the borrower is current on all contractual interest payments for the senior A-Note and the subordinated B-Note. (13) In June 2024, the Company and the borrower entered into a modification and extension agreement to, among other things, extend the maturity date on the senior Massachusetts loan from April 2025 to April 2026. (14) In May 2024, the Company and the borrower entered into a modification and extension agreement to, among other things, extend the maturity date on the senior New Jersey loan from May 2024 to August 2024. (15) Loan was on non-accrual status as of June 30, 2024 and the Unleveraged Effective Yield is not applicable. For the three and six months ended June 30, 2024, the Company received $459 thousand and $913 thousand, 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 May 2024, the Company and the borrower entered into a modification and extension agreement to, among other things, extend the maturity date on the senior Alabama loan from May 2024 to December 2024. (17) In May 2024, the borrower exercised a 12-month extension option in accordance with the loan agreement, which extended the maturity date on the senior New Jersey loan to July 2025. (18) Loan was on non-accrual status as of June 30, 2024 and the Unleveraged Effective Yield is not applicable. The mezzanine New Jersey loan is currently in default due to the borrower not making its contractual interest payments due subsequent to the December 2023 interest payment date. For the three and six months ended June 30, 2024, the Company received $185 thousand and $222 thousand, respectively, of interest payments in cash on the mezzanine New Jersey loan that was recognized as a reduction to the carrying value of the loan.
Schedule of Activity in Loan Portfolio	For the six months ended June 30, 2024, the activity in the Company’s loan portfolio was as follows ($ in thousands): Balance at December 31, 2023 $ 2,126,524 Initial funding — Origination and other loan fees and discounts, net of costs (659) Additional funding 25,313 Amortizing payments (6,644) Loan payoffs (1) (123,265) Loans transferred to held for sale (2) (20,534) Loans converted to real estate owned (see Note 5) (30,647) Origination and other loan fees and discount accretion 2,463 Balance at June 30, 2024 $ 1,972,551 _________________________ (1) Amount includes the carrying value of certain loans where the carrying value exceeded the net proceeds received from the payoff of the loan. In February 2024, the Company received a discounted payoff on a senior mortgage loan with outstanding principal of $18.8 million, which was collateralized by a multifamily property located in Washington, in conjunction with a short sale of the multifamily property by the borrower to a third party. At the time of the discounted payoff, the senior mortgage loan was in default due to the failure of the borrower to repay the outstanding principal balance of the loan by the September 2023 maturity date. For the six months ended June 30, 2024, the Company recognized a realized loss of $1.7 million in the Company’s consolidated statements of operations as the carrying value of the senior mortgage loan exceeded the net proceeds from the payoff of the loan. In addition, in March 2024, the Company received a discounted payoff on a senior mortgage loan with outstanding principal of $56.9 million, which was collateralized by an office property located in Illinois, in conjunction with a short sale of the office property by the borrower to a third party. At the time of the discounted payoff, the senior mortgage loan was in default due to the failure of the borrower to repay the outstanding principal balance of the loan by the February 2024 maturity date. For the six months ended June 30, 2024, the Company recognized a realized loss of $43.1 million in the Company’s consolidated statements of operations as the carrying value of the senior mortgage loan exceeded the net proceeds from the payoff of the loan. (2) As of June 30, 2024, the Company intended to sell a mezzanine loan on a multifamily property located in South Carolina with outstanding principal of $20.6 million to a third party and the loan was reclassified from held for investment to held for sale and is carried at the lower of carrying value or fair value in the Company’s consolidated balance sheets. As of June 30, 2024, the sale had not yet closed. The Company did not recognize any gain or loss upon

CURRENT EXPECTED CREDIT LOSSES

CURRENT EXPECTED CREDIT LOSSES (Tables)	6 Months Ended
CURRENT EXPECTED CREDIT LOSSES (Tables)	Jun. 30, 2024
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, 2024 was as follows ($ in thousands): Balance at March 31, 2024 (1) $ 139,763 Provision for current expected credit losses (2,360) Write-offs — Recoveries — Balance at June 30, 2024 (1) $ 137,403 Balance at December 31, 2023 (1) $ 159,885 Provision for current expected credit losses (22,482) Write-offs — Recoveries — Balance at June 30, 2024 (1) $ 137,403 __________________________ (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, 2024 was as follows ($ in thousands): Balance at March 31, 2024 (1) $ 1,101 Provision for current expected credit losses (14) Write-offs — Recoveries — Balance at June 30, 2024 (1) $ 1,087 Balance at December 31, 2023 (1) $ 3,248 Provision for current expected credit losses (2,161) Write-offs — Recoveries — Balance at June 30, 2024 (1) $ 1,087 __________________________ (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, 2024, 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): 2024 2023 2022 2021 2020 Prior Total Risk rating: 1 $ — $ — $ 37,830 $ — $ — $ — $ 37,830 2 — 103,806 11,466 163,934 — 20,258 299,464 3 — 10,679 364,658 593,577 108,728 111,769 1,189,411 4 — — 90,174 7,586 153,960 — 251,720 5 — — 95,363 — — 98,763 194,126 Total $ — $ 114,485 $ 599,491 $ 765,097 $ 262,688 $ 230,790 $ 1,972,551

REAL ESTATE OWNED (Tables)

REAL ESTATE OWNED (Tables)	6 Months Ended
REAL ESTATE OWNED (Tables)	Jun. 30, 2024
Real Estate Owned [Abstract]
Schedule of Real Estate Properties	The following table summarizes the Company’s real estate owned held for investment as of June 30, 2024 and December 31, 2023 ($ in thousands): As of June 30, 2024 December 31, 2023 Land $ 21,337 $ 21,337 Buildings and improvements 52,224 52,224 In-place lease intangibles 21,276 21,276 Above-market lease intangibles 547 547 Below-market lease intangibles (11,084) (11,084) Total real estate owned held for investment 84,300 84,300 Less: Accumulated depreciation and amortization (2,572) (1,016) Real estate owned held for investment, net $ 81,728 $ 83,284
Schedule of Intangible Lease Assets and Liabilities	The following table summarizes the Company’s intangible lease assets and liabilities that are included within real estate owned held for investment as of June 30, 2024 and December 31, 2023 ($ in thousands): As of June 30, 2024 As of December 31, 2023 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Assets: In-place lease intangibles $ 21,276 $ (1,927) $ 19,349 $ 21,276 $ (767) $ 20,509 Above-market lease intangibles 547 (90) 457 547 (35) 512 Liabilities: Below-market lease intangibles (11,084) 836 (10,248) (11,084) 322 (10,762)
Schedule of Amortization of Intangible Lease Assets and Liabilities	The following table summarizes the amortization of intangible lease assets and liabilities related to real estate owned held for investment for the three and six months ended June 30, 2024 ($ in thousands): Consolidated Statement For the Three Months Ended June 30, 2024 For the Six Months Ended June 30, 2024 Assets: In-place lease intangibles Expenses from real estate owned $ 572 $ 1,160 Above-market lease intangibles Revenue from real estate owned (28) (56) Liabilities: Below-market lease intangibles Revenue from real estate owned 257 514
Schedule of Estimated Net Amortization Intangible Lease Assets and Liabilities	The following table summarizes the estimated net amortization schedule for the Company’s intangible lease assets and liabilities that are included within real estate owned held for investment as of June 30, 2024 ($ in thousands): In-Place Above-Market Below-Market Lease Intangibles Lease Intangibles Lease Intangibles Remainder of 2024 $ 1,144 $ 56 $ (514) 2025 2,232 91 (1,027) 2026 1,821 76 (618) 2027 1,701 51 (571) 2028 1,603 41 (542) Thereafter 10,848 142 (6,976) Total $ 19,349 $ 457 $ (10,248)
Schedule of the Future Minimum Contractual Lease to be Received, Maturity	The following table summarizes the future minimum contractual lease payments to be collected by the Company under non-cancelable operating leases related to real estate owned held for investment, excluding tenant reimbursements of expenses and variable lease payments, as of June 30, 2024 ($ in thousands): Remainder of 2024 $ 5,020 2025 10,106 2026 10,224 2027 9,989 2028 9,976 Thereafter 34,332 Total $ 79,647

DEBT (Tables)

DEBT (Tables)	6 Months Ended
DEBT (Tables)	Jun. 30, 2024
Debt Disclosure [Abstract]
Schedule of Outstanding Balances and Total Commitments Under Financing Agreements	As of June 30, 2024 and December 31, 2023, the outstanding balances and total commitments under the Financing Agreements consisted of the following ($ in thousands): June 30, 2024 December 31, 2023 Outstanding Balance Total Outstanding Balance Total Secured Funding Agreements: Wells Fargo Facility $ 216,487 $ 450,000 (1) $ 208,540 $ 450,000 (1) Citibank Facility 204,104 325,000 221,604 325,000 CNB Facility — 75,000 (2) — 75,000 MetLife Facility — — (3) — 180,000 Morgan Stanley Facility 205,345 250,000 209,673 250,000 Subtotal $ 625,936 $ 1,100,000 $ 639,817 $ 1,280,000 Notes Payable $ 105,000 $ 105,000 $ 105,000 $ 105,000 Secured Term Loan $ 140,000 $ 140,000 (4) $ 150,000 $ 150,000 Total $ 870,936 $ 1,345,000 $ 894,817 $ 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. (2) Amount immediately available under the CNB Facility at any given time can fluctuate based on the fair value of the collateral in the borrowing base that secures the CNB Facility. As of June 30, 2024, there was approximately $50.0 million immediately available under the CNB Facility based on the fair value of the collateral in the borrowing base at such time. The amount immediately available under the CNB Facility may be increased to up to $75.0 million by the pledge of additional collateral into the borrowing base in accordance with the CNB Facility agreement. (3) In May 2024, the Company elected to terminate the MetLife Facility prior to its scheduled maturity in August 2024 as the facility had no outstanding balance. (4) In May 2024, the Company entered into an amendment to the Secured Term Loan (defined below) and concurrently therewith, repaid $10.0 million of outstanding principal on the Secured Term Loan at par prior to the scheduled maturity as permitted by the contractual terms of the Secured Term Loan amendment. As of June 30, 2024, the Secured Term Loan has a commitment amount of $140.0 million.

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
COMMITMENTS AND CONTINGENCIES (Tables)	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Schedule of Loan Commitments	As of June 30, 2024 and December 31, 2023, 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, 2024 December 31, 2023 Total commitments $ 2,094,034 $ 2,274,584 Less: funded commitments (2,007,435) (2,158,045) Total unfunded commitments $ 86,599 $ 116,539

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	6 Months Ended
STOCKHOLDERS' EQUITY (Tables)	Jun. 30, 2024
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, 2024: Schedule of Non-Vested Share and Share Equivalents Restricted Stock Grants—Directors RSUs—Officers and Employees of the Manager Total Balance at December 31, 2023 34,215 1,063,366 1,097,581 Granted 83,052 — 83,052 Vested (32,964) (286,450) (319,414) Forfeited — (46,163) (46,163) Balance at June 30, 2024 84,303 730,753 815,056
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 Remainder of 2024 42,366 4,285 46,651 2025 41,937 334,633 376,570 2026 — 258,365 258,365 2027 — 133,470 133,470 2028 — — — Total 84,303 730,753 815,056

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
EARNINGS PER SHARE (Tables)	Jun. 30, 2024
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, 2024 and 2023 ($ in thousands, except share and per share data): For the Three Months Ended June 30, For the Six Months Ended June 30, 2024 2023 2024 2023 Net income (loss) attributable to common stockholders $ (6,125) $ (2,198) $ (18,448) $ (8,638) Divided by: Basic weighted average shares of common stock outstanding: 54,426,112 54,347,204 54,411,255 54,468,752 Weighted average non-vested restricted stock and RSUs (1) — — — — Diluted weighted average shares of common stock outstanding: 54,426,112 54,347,204 54,411,255 54,468,752 Basic earnings (loss) per common share $ (0.11) $ (0.04) $ (0.34) $ (0.16) Diluted earnings (loss) per common share $ (0.11) $ (0.04) $ (0.34) $ (0.16) _______________________________

INCOME TAX (Tables)

INCOME TAX (Tables)	6 Months Ended
INCOME TAX (Tables)	Jun. 30, 2024
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, 2024 and 2023 ($ in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2024 2023 2024 2023 Current $ — $ 9 $ — $ 19 Deferred — — 2 — Excise tax — (55) — 45 Total income tax expense (benefit), including excise tax $ — $ (46) $ 2 $ 64

FAIR VALUE (Tables)

FAIR VALUE (Tables)	6 Months Ended
FAIR VALUE (Tables)	Jun. 30, 2024
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, 2024 and December 31, 2023 ($ in thousands): As of June 30, 2024 Face Amount Amortized Cost Unamortized Discount Unrealized Gain (Loss), Net Available-for-sale debt securities $ 28,000 $ 27,920 $ 80 $ 193 As of December 31, 2023 Face Amount Amortized Cost Unamortized Discount Unrealized Gain (Loss), Net Available-for-sale debt securities $ 28,000 $ 27,906 $ 94 $ 154
Schedule of Fair Value, Assets Measured on Recurring Basis	The following tables summarize the financial assets measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023 ($ in thousands): As of June 30, 2024 Level 1 Level 2 Level 3 Total Financial assets: Available-for-sale debt securities $ — $ 28,113 $ — $ 28,113 As of December 31, 2023 Level 1 Level 2 Level 3 Total Financial assets: Available-for-sale debt securities $ — $ 28,060 $ — $ 28,060
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, 2024 and December 31, 2023, 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, 2024 December 31, 2023 Level in Fair Value Hierarchy Carrying Value Fair Carrying Value Fair Financial assets: Loans held for investment 3 $ 1,972,551 $ 1,823,784 $ 2,126,524 $ 1,944,718 Financial liabilities: Secured funding agreements 2 $ 625,936 $ 625,936 $ 639,817 $ 639,817 Notes payable 2 104,751 105,000 104,662 105,000 Secured term loan 3 137,409 126,984 149,393 134,024 Collateralized loan obligation securitization debt (consolidated VIEs) 2 588,421 577,356 723,117 705,033

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	6 Months Ended
RELATED PARTY TRANSACTIONS (Tables)	Jun. 30, 2024
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, 2024 and 2023, and amounts payable to the Company’s Manager as of June 30, 2024 and December 31, 2023 ($ in thousands): Incurred Payable For the Three Months Ended June 30, For the Six Months As of 2024 2023 2024 2023 June 30, December 31, 2023 Affiliate Payments Management fees $ 2,692 $ 3,000 $ 5,460 $ 6,010 $ 2,692 $ 2,946 Incentive fees — 334 — 334 — — General and administrative expenses 1,277 1,109 2,409 1,842 1,809 1,154 Direct costs (1) 72 19 115 40 25 35 Total $ 4,041 $ 4,462 $ 7,984 $ 8,226 $ 4,526 $ 4,135 _______________________________

DIVIDENDS AND DISTRIBUTIONS (Ta

DIVIDENDS AND DISTRIBUTIONS (Tables)	6 Months Ended
DIVIDENDS AND DISTRIBUTIONS (Tables)	Jun. 30, 2024
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, 2024 and 2023 ($ in thousands, except per share data): Date Declared Record Date Payment Date Per Share Amount Total Amount May 9, 2024 June 28, 2024 July 16, 2024 $ 0.25 $ 13,812 February 22, 2024 March 28, 2024 April 16, 2024 0.25 13,802 Total cash dividends declared for the six months ended June 30, 2024 $ 0.50 $ 27,614 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) 19,345 Total cash dividends declared for the six months ended June 30, 2023 $ 0.70 $ 38,525 _______________________________

ORGANIZATION (Details)

ORGANIZATION (Details)	6 Months Ended
ORGANIZATION (Details)	Jun. 30, 2024 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, 2024
Property, Plant and Equipment [Line Items]
Debt securities, available-for-sale, interest payments are past due	30 days
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	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest expense	$ 27,483	$ 26,951	$ 56,302	$ 49,950
Secured funding agreements
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest expense	12,743	13,081	25,620	25,392
Notes Payable
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest expense	1,997	1,904	3,996	3,663
Securitization debt
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest expense	10,897	12,428	23,084	24,034
Secured term loan
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest expense	1,846	1,754	3,602	3,488
Other
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Other	$ 0	$ (2,216)	$ 0	$ (6,627)

LOANS HELD FOR INVESTMENT - Nar

LOANS HELD FOR INVESTMENT - Narrative (Details) $ in Millions	6 Months Ended
	Jun. 30, 2024 USD ($) loan	Dec. 31, 2023 USD ($) 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	42
Number of loans repaid or sold, since inception \| loan	172
Total commitment	$ 2,200
Loans held for investment	2,000
Amount funded	25.3
Amount of repayments	$ 79.3
Number of loans converted \| loan	1
Loan, securitized or asset-backed financing arrangement, principal outstanding	$ 33.2
Principal amount of loan held for sale	$ 20.6
Percentage of loans held for investment having LIBOR floors	69.10%
Weighted average floor (as a percent)	1.17%
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	7	9
Financing receivable, non-accrual	$ 331.9	$ 399.3

LOANS HELD FOR INVESTMENT - Sch

LOANS HELD FOR INVESTMENT - Schedule of Loans Held for Investments (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Amount	$ 1,972,551	$ 2,126,524
Outstanding Principal	$ 2,007,435	$ 2,158,045
Weighted Average Unleveraged Effective Yield, Including Non-accrual Loans	7.60%	7.50%
Weighted Average Unleveraged Effective Yield, Excluding Non-accrual Loans	9.30%	9.40%
Weighted Average Remaining Life (Years)	1 year	1 year 1 month 6 days
Senior mortgage loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Amount	$ 1,949,312	$ 2,090,146
Outstanding Principal	$ 1,979,070	$ 2,118,947
Weighted Average Unleveraged Effective Yield, Including Non-accrual Loans	7.70%	7.50%
Weighted Average Unleveraged Effective Yield, Excluding Non-accrual Loans	9.30%	9.30%
Weighted Average Remaining Life (Years)	1 year	1 year 1 month 6 days
Subordinated debt and preferred equity investments
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Amount	$ 23,239	$ 36,378
Outstanding Principal	$ 28,365	$ 39,098
Weighted Average Unleveraged Effective Yield, Including Non-accrual Loans	0%	8.10%
Weighted Average Unleveraged Effective Yield, Excluding Non-accrual Loans	0%	15.30%
Weighted Average Remaining Life (Years)	2 years	1 year 9 months 18 days

LOANS HELD FOR INVESTMENT - S_2

LOANS HELD FOR INVESTMENT - Schedule of Current Investment Portfolio (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2024 USD ($)	Jun. 30, 2024 USD ($) option	Jun. 12, 2024 USD ($)	Dec. 31, 2023 USD ($)
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 2,007,435	$ 2,007,435		$ 2,158,045
Carrying Amount	1,972,551	$ 1,972,551		$ 2,126,524
Unleveraged Effective Yield		7.60%
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
Senior Mortgage Loans \| NY \| SOFR Plus 2.65% Due Jul 2027
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	73,800	$ 73,800
Office \| IL
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	47,400	$ 47,400
Weighted average unleveraged effective yield		10%
Office \| NY \| Subordinated B Note
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Weighted average unleveraged effective yield		5.50%
Office \| NJ
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest income	185	$ 222
Office \| Senior Mortgage Loans \| IL \| SOFR Plus 2.25%, Due Mar 2025
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	161,400	161,400
Carrying Amount	$ 154,000	$ 154,000
Interest Rate	2.25%	2.25%
Unleveraged Effective Yield		7.60%
Office \| Senior Mortgage Loans \| IL \| SOFR Plus 4.25% Due Jan 2025
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 56,000	$ 56,000
Carrying Amount	$ 55,900	$ 55,900
Interest Rate	4.25%	4.25%
Unleveraged Effective Yield		10.10%
Office \| Senior Mortgage Loans \| NY \| SOFR Plus 2.65% Due Jul 2027
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 59,000	$ 59,000
Carrying Amount	$ 59,000	$ 59,000
Interest Rate	2.65%	2.65%
Unleveraged Effective Yield		8%
Office \| Senior Mortgage Loans \| NY \| SOFR Plus 2.65% Due Jul 2027 \| Senior A Note
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 60,000	$ 60,000
Interest Rate	2.65%	2.65%
Repayments of debt		$ 59,000
Financing receivable, accrual	$ 59,000	59,000
Office \| Senior Mortgage Loans \| NY \| SOFR Plus 2.65% Due Jul 2027 \| Subordinated B Note
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	13,800	13,800
Repayments of debt		9,800
Financing receivable, non-accrual	9,900	9,900
Office \| Senior Mortgage Loans \| Diversified \| SOFR Plus 3.75% Due Jan 2024
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	108,900	108,900
Carrying Amount	$ 108,700	$ 108,700
Interest Rate	3.75%	3.75%
Unleveraged Effective Yield		9.30%
Office \| Senior Mortgage Loans \| AZ \| SOFR Plus 3.61%, Due Oct 2024
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 73,200	$ 73,200
Carrying Amount	$ 73,100	$ 73,100
Interest Rate	3.61%	3.61%
Unleveraged Effective Yield		9.40%
Office \| Senior Mortgage Loans \| NC \| SOFR Plus 3.65% Due Aug 2028
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 70,600	$ 70,600
Carrying Amount	$ 70,500	$ 70,500
Interest Rate	3.65%	3.65%
Unleveraged Effective Yield		9%
Office \| Senior Mortgage Loans \| NC \| SOFR Plus 4.35% Due May 2024
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Amount	$ 64,900	$ 64,900
Interest Rate	4.35%	4.35%
Unleveraged Effective Yield		0%
Office \| Senior Mortgage Loans \| NC \| SOFR Plus 4.35% Due May 2024 \| 5 - Impaired/Loss Likely: A loan that has significantly increased probability of default or principal loss
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 68,600	$ 68,600
Office \| Senior Mortgage Loans \| CA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal			$ 33,200
Office \| Senior Mortgage Loans \| CA \| SOFR Plus 3.50%, Due Nov 2025
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	20,300	20,300
Carrying Amount	$ 20,300	$ 20,300
Interest Rate	3.50%	3.50%
Unleveraged Effective Yield		9.10%
Office \| Senior Mortgage Loans \| MA \| SOFR Plus 3.75% Due Apr 2026
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 51,400	$ 51,400
Carrying Amount	$ 51,000	$ 51,000
Interest Rate	3.75%	3.75%
Unleveraged Effective Yield		9.70%
Office \| Senior Mortgage Loans \| GA \| SOFR Plus 3.15%, Due Dec 2024
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 48,300	$ 48,300
Carrying Amount	$ 48,200	$ 48,200
Interest Rate	3.15%	3.15%
Unleveraged Effective Yield		8.80%
Office \| Senior Mortgage Loans \| AL \| SOFR Plus 3.95% Due Dec 2024
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 19,500	$ 19,500
Office \| Subordinated debt and preferred equity investments \| NY
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	9,900	9,900
Carrying Amount	7,600	$ 7,600
Weighted average unleveraged effective yield		5.50%
Unleveraged Effective Yield		0%
Office \| Subordinated debt and preferred equity investments \| CA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	20,600	$ 20,600
Office \| Subordinated debt and preferred equity investments \| NJ
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Amount	15,700	$ 15,700
Weighted average unleveraged effective yield		12%
Unleveraged Effective Yield		0%
Office \| Subordinated debt and preferred equity investments \| NJ \| 5 - Impaired/Loss Likely: A loan that has significantly increased probability of default or principal loss
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	18,500	$ 18,500
Multifamily \| TX
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest income	1,700	1,700
Multifamily \| Senior Mortgage Loans \| NY \| SOFR Plus 3.90% Due Jun 2025
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	132,200	132,200
Carrying Amount	$ 131,600	$ 131,600
Interest Rate	3.90%	3.90%
Unleveraged Effective Yield		9.70%
Multifamily \| Senior Mortgage Loans \| TX \| SOFR Plus 3.00% Due Jul 2025
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Amount	$ 95,400	$ 95,400
Interest Rate	3%	3%
Unleveraged Effective Yield		0%
Multifamily \| Senior Mortgage Loans \| TX \| SOFR Plus 3.00% Due Jul 2025 \| 5 - Impaired/Loss Likely: A loan that has significantly increased probability of default or principal loss
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 97,500	$ 97,500
Multifamily \| Senior Mortgage Loans \| TX \| SOFR Plus 3.00% Due Jul 2025 \| Minimum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3%	3%
Multifamily \| Senior Mortgage Loans \| TX \| SOFR Plus 2.95% Due Dec 2024
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 68,400	$ 68,400
Carrying Amount	$ 68,300	$ 68,300
Interest Rate	2.95%	2.95%
Unleveraged Effective Yield		8.70%
Multifamily \| Senior Mortgage Loans \| TX \| SOFR Plus 2.60% Due Oct 2024
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 23,100	$ 23,100
Carrying Amount	$ 23,100	$ 23,100
Interest Rate	2.60%	2.60%
Unleveraged Effective Yield		8.30%
Multifamily \| Senior Mortgage Loans \| TX \| SOFR Plus 3.50% Due Jul 2025 \| Maximum
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	3.50%	3.50%
Multifamily \| Senior Mortgage Loans \| OH \| SOFR Plus 3.05% Due Oct 2026
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 57,000	$ 57,000
Carrying Amount	$ 56,600	$ 56,600
Interest Rate	3.05%	3.05%
Unleveraged Effective Yield		8.80%
Multifamily \| Senior Mortgage Loans \| CA \| SOFR Plus 3.00% Due Dec 2025
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 31,700	$ 31,700
Carrying Amount	$ 31,600	$ 31,600
Interest Rate	3%	3%
Unleveraged Effective Yield		8.60%
Multifamily \| Senior Mortgage Loans \| PA \| SOFR Plus 2.50% Due Dec 2025
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 28,200	$ 28,200
Carrying Amount	$ 28,200	$ 28,200
Interest Rate	2.50%	2.50%
Unleveraged Effective Yield		7.80%
Multifamily \| Senior Mortgage Loans \| WA \| SOFR Plus 3.00% Due Nov 2025
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 23,100	$ 23,100
Carrying Amount	$ 23,000	$ 23,000
Interest Rate	3%	3%
Unleveraged Effective Yield		8.50%
Residential/Condo \| Senior Mortgage Loans \| NY \| SOFR Plus 8.95% Due Dec 2025
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 101,700	$ 101,700
Carrying Amount	$ 90,200	$ 90,200
Interest Rate	8.95%	8.95%
Unleveraged Effective Yield		0%
Residential/Condo \| Senior Mortgage Loans \| NY \| SOFR Plus 8.95%, Due April 2024
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate	8.95%	8.95%
Residential/Condo \| Senior Mortgage Loans \| FL \| SOFR Plus 5.35%, Due Jul 2024
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 75,000	$ 75,000
Carrying Amount	$ 75,000	$ 75,000
Interest Rate	5.35%	5.35%
Unleveraged Effective Yield		10.70%
Industrial \| NC
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest income	$ 572	$ 2,300
Industrial \| CA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest income	459	913
Industrial \| Senior Mortgage Loans \| IL \| SOFR Plus 4.65%, Due Nov 2024
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	100,700	100,700
Carrying Amount	$ 100,700	$ 100,700
Interest Rate	4.65%	4.65%
Unleveraged Effective Yield		11.60%
Industrial \| Senior Mortgage Loans \| TX \| SOFR Plus 5.35% Due Dec 2024
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 10,000	$ 10,000
Carrying Amount	$ 10,000	$ 10,000
Interest Rate	5.35%	5.35%
Unleveraged Effective Yield		11.10%
Industrial \| Senior Mortgage Loans \| FL \| SOFR Plus 3.00% Due Dec 2025
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 25,500	$ 25,500
Carrying Amount	$ 25,400	$ 25,400
Interest Rate	3%	3%
Unleveraged Effective Yield		8.60%
Industrial \| Senior Mortgage Loans \| CA \| SOFR Plus 3.00% Due Jul 2025 \| 5 - Impaired/Loss Likely: A loan that has significantly increased probability of default or principal loss
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 19,600	$ 19,600
Industrial \| Senior Mortgage Loans \| CA \| SOFR Plus 3.85% Due Sep 2024
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	19,600	19,600
Carrying Amount	$ 18,200	$ 18,200
Interest Rate	3.85%	3.85%
Unleveraged Effective Yield		0%
Industrial \| Senior Mortgage Loans \| MA \| SOFR Plus 2.90% Due Jun 2028
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 47,400	$ 47,400
Carrying Amount	$ 47,200	$ 47,200
Interest Rate	2.90%	2.90%
Unleveraged Effective Yield		8.40%
Industrial \| Senior Mortgage Loans \| NJ \| SOFR Plus 3.85%, Due Aug 2024
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 27,800	$ 27,800
Carrying Amount	$ 27,700	$ 27,700
Interest Rate	3.85%	3.85%
Unleveraged Effective Yield		11.30%
Industrial \| Senior Mortgage Loans \| TN \| SOFR Plus 5.60% Due Nov 2024
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 6,400	$ 6,400
Carrying Amount	$ 6,400	$ 6,400
Interest Rate	5.60%	5.60%
Unleveraged Effective Yield		11.30%
Mixed-use \| Senior Mortgage Loans \| NY \| SOFR Plus 3.75% Due Jul 2024
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 77,200	$ 77,200
Carrying Amount	$ 77,200	$ 77,200
Interest Rate	3.75%	3.75%
Unleveraged Effective Yield		9.50%
Mixed-use \| Senior Mortgage Loans \| TX \| SOFR Plus 3.85% Due Sep 2024
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 35,300	$ 35,300
Carrying Amount	$ 35,300	$ 35,300
Interest Rate	3.85%	3.85%
Unleveraged Effective Yield		9.50%
Multifamily/Office \| Senior Mortgage Loans \| SC \| SOFR Plus 3.00%, Due Nov 2024
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 67,000	$ 67,000
Carrying Amount	$ 67,000	$ 67,000
Interest Rate	3%	3%
Unleveraged Effective Yield		8.60%
Hotel \| Senior Mortgage Loans \| NY \| LIBOR Plus 4 .40% Due Mar 2026
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 53,600	$ 53,600
Carrying Amount	$ 53,300	$ 53,300
Interest Rate	4.40%	4.40%
Unleveraged Effective Yield		10.10%
Hotel \| Senior Mortgage Loans \| CA \| SOFR Plus 4.20% Due Mar 2025
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 55,000	$ 55,000
Carrying Amount	$ 54,800	$ 54,800
Interest Rate	4.20%	4.20%
Unleveraged Effective Yield		10%
Student Housing \| Senior Mortgage Loans \| AL \| SOFR Plus 3.95% Due Dec 2024
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 19,500	$ 19,500
Carrying Amount	$ 19,400	$ 19,400
Interest Rate	3.95%	3.95%
Unleveraged Effective Yield		10.60%
Self Storage \| Senior Mortgage Loans \| MA \| SOFR Plus 3.00%, Due Nov 2024
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 7,700	$ 7,700
Carrying Amount	$ 7,700	$ 7,700
Interest Rate	3%	3%
Unleveraged Effective Yield		8.50%
Self Storage \| Senior Mortgage Loans \| MA \| SOFR Plus 3.00%, Due Oct 2024
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 6,800	$ 6,800
Carrying Amount	$ 6,700	$ 6,700
Interest Rate	3%	3%
Unleveraged Effective Yield		8.50%
Self Storage \| Senior Mortgage Loans \| PA \| SOFR Plus 3.00% Due Dec 2025
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 18,200	$ 18,200
Carrying Amount	$ 18,100	$ 18,100
Interest Rate	3%	3%
Unleveraged Effective Yield		8.60%
Self Storage \| Senior Mortgage Loans \| NJ \| SOFR Plus 2.90% Due April 2025
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 17,600	$ 17,600
Carrying Amount	$ 17,500	$ 17,500
Interest Rate	2.90%	2.90%
Unleveraged Effective Yield		9%
Self Storage \| Senior Mortgage Loans \| NJ \| SOFR Plus 3.00% Due Jul 2024
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 5,900	$ 5,900
Carrying Amount	$ 5,900	$ 5,900
Interest Rate	3%	3%
Unleveraged Effective Yield		8.80%
Self Storage \| Senior Mortgage Loans \| WA \| SOFR Plus 2.90% Due Mar 2025
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 11,500	$ 11,500
Carrying Amount	$ 11,500	$ 11,500
Interest Rate	2.90%	2.90%
Unleveraged Effective Yield		9%
Self Storage \| Senior Mortgage Loans \| IN \| SOFR Plus 3.60%, Due Jun 2026
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 10,700	$ 10,700
Carrying Amount	$ 10,700	$ 10,700
Interest Rate	3.60%	3.60%
Unleveraged Effective Yield		9.10%

LOANS HELD FOR INVESTMENT - S_3

LOANS HELD FOR INVESTMENT - Schedule of Activity in Loan Portfolio (Details) - USD ($) $ in Thousands	1 Months Ended	6 Months Ended
	Feb. 29, 2024	Jun. 30, 2024
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Balance at the beginning of the period		$ 2,126,524
Initial funding		0
Origination and other loan fees and discounts, net of costs		(659)
Additional funding		25,313
Amortizing payments		(6,644)
Loan payoffs		(123,265)
Loans transferred to held for sale		(20,534)
Loans converted to real estate owned (see Note 5)		(30,647)
Origination and other loan fees and discount accretion		2,463
Balance at the end of the period		1,972,551
Multifamily \| WA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan payoffs	$ 18,800
Multifamily \| WA \| Senior Mortgage Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Mortgage loans on real estate loan, realized loss		1,700
Office \| IL
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Loan payoffs		56,900
Office \| IL \| Senior Mortgage Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Mortgage loans on real estate loan, realized loss		$ 43,100

CURRENT EXPECTED CREDIT LOSSE_2

CURRENT EXPECTED CREDIT LOSSES - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 12, 2024	Mar. 31, 2024	Dec. 31, 2023
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, allowance for credit loss, excluding accrued interest	$ 138,500
Allowance for credit loss (basis points)	6.61%
Commitments	$ 2,094,034			$ 2,274,584
Outstanding Principal	2,007,435			2,158,045
Other Assets
Financing Receivable, Allowance for Credit Loss [Line Items]
Interest receivable	11,000			13,000
Office \| Senior Mortgage Loans \| CA
Financing Receivable, Allowance for Credit Loss [Line Items]
Outstanding Principal		$ 33,200
Office \| Senior Mortgage Loans \| NJ \| 5 - Impaired/Loss Likely: A loan that has significantly increased probability of default or principal loss
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, allowance for credit loss, excluding accrued interest	15,700
Office \| Senior Mortgage Loans \| NC \| 5 - Impaired/Loss Likely: A loan that has significantly increased probability of default or principal loss
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, allowance for credit loss, excluding accrued interest	5,600
Office \| Senior Mortgage Loans \| NC \| 5 - Impaired/Loss Likely: A loan that has significantly increased probability of default or principal loss \| SOFR Plus 4.35% Due May 2024
Financing Receivable, Allowance for Credit Loss [Line Items]
Outstanding Principal	68,600
Office \| Subordinated debt and preferred equity investments \| CA
Financing Receivable, Allowance for Credit Loss [Line Items]
Outstanding Principal	20,600
Office \| Subordinated debt and preferred equity investments \| NJ \| 5 - Impaired/Loss Likely: A loan that has significantly increased probability of default or principal loss
Financing Receivable, Allowance for Credit Loss [Line Items]
Outstanding Principal	18,500
Industrial \| Senior Mortgage Loans \| CA \| 5 - Impaired/Loss Likely: A loan that has significantly increased probability of default or principal loss
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, allowance for credit loss, excluding accrued interest	10,900
Industrial \| Senior Mortgage Loans \| CA \| 5 - Impaired/Loss Likely: A loan that has significantly increased probability of default or principal loss \| SOFR Plus 3.00% Due Jul 2025
Financing Receivable, Allowance for Credit Loss [Line Items]
Outstanding Principal	19,600
Multifamily \| Senior Mortgage Loans \| TX \| 5 - Impaired/Loss Likely: A loan that has significantly increased probability of default or principal loss
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, allowance for credit loss, excluding accrued interest	6,500
Multifamily \| Senior Mortgage Loans \| TX \| 5 - Impaired/Loss Likely: A loan that has significantly increased probability of default or principal loss \| SOFR Plus 3.00% Due Jul 2025
Financing Receivable, Allowance for Credit Loss [Line Items]
Outstanding Principal	97,500
Loans Held for Investment
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, allowance for credit loss, excluding accrued interest	137,403		$ 139,763	159,885
Unfunded Loan Commitment
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, allowance for credit loss, excluding accrued interest	$ 1,087		$ 1,101	$ 3,248

CURRENT EXPECTED CREDIT LOSSE_3

CURRENT EXPECTED CREDIT LOSSES - Schedule of Financing Receivable, Allowance for Credit Loss (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Provision for current expected credit losses	$ (2,374)	$ 20,127	$ (24,643)	$ 41,146
Balance at the end of the period	138,500		138,500
Loans Held for Investment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at the beginning of the period	139,763		159,885
Provision for current expected credit losses	(2,360)		(22,482)
Write-offs	0		0
Recoveries	0		0
Balance at the end of the period	137,403		137,403
Unfunded Loan Commitment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at the beginning of the period	1,101		3,248
Provision for current expected credit losses	(14)		(2,161)
Write-offs	0		0
Recoveries	0		0
Balance at the end of the period	$ 1,087		$ 1,087

CURRENT EXPECTED CREDIT LOSSE_4

CURRENT EXPECTED CREDIT LOSSES - Schedule of Financing Receivable Credit Quality Indicators (Details) - Loans Held for Investment $ in Thousands	Jun. 30, 2024 USD ($)
Financing Receivable, Credit Quality Indicator [Line Items]
2024	$ 0
2023	114,485
2022	599,491
2021	765,097
2020	262,688
Prior	230,790
Total	1,972,551
1 - Very Low Risk
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0
2023	0
2022	37,830
2021	0
2020	0
Prior	0
Total	37,830
2 - Low Risk
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0
2023	103,806
2022	11,466
2021	163,934
2020	0
Prior	20,258
Total	299,464
3 - Medium Risk
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0
2023	10,679
2022	364,658
2021	593,577
2020	108,728
Prior	111,769
Total	1,189,411
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]
2024	0
2023	0
2022	90,174
2021	7,586
2020	153,960
Prior	0
Total	251,720
5 - Impaired/Loss Likely: A loan that has significantly increased probability of default or principal loss
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0
2023	0
2022	95,363
2021	0
2020	0
Prior	98,763
Total	$ 194,126

REAL ESTATE OWNED - Narrative (

REAL ESTATE OWNED - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Jun. 12, 2024	Sep. 08, 2023
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal	$ 2,007,435	$ 2,007,435		$ 2,158,045
Real estate owned held for investment, net	81,728	81,728		83,284
Operating assets	1,100	1,100
Operating liabilities	1,000	1,000
Depreciation and amortization of real estate owned	770	1,556	$ 0
Office Property \| Senior Mortgage Loans \| CA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal					$ 33,200
Debt derecognized					$ 33,200
Mortgage loans on real estate loan, realized loss	16,400	16,400
Real estate owned held for investment, net	14,500	14,500
Other repossessed hotel assets	(67)	(67)
Total real estate owned held for investment	30,800	30,800
Mixed-Use Property \| FL
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Real estate owned held for investment, net	81,728	81,728		83,284
Total real estate owned held for investment	$ 84,300	84,300		84,300
Impairment charges		$ 0		$ 0
Weighted-average amortization periods		9 years 3 months 18 days
Mixed-Use Property \| Senior Mortgage Loans \| FL
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Principal						$ 82,900
Debt derecognized						82,900
Real estate owned held for investment, net						84,300
Other repossessed hotel assets						(1,400)
Total real estate owned held for investment						$ 82,900

REAL ESTATE OWNED - Schedule of

REAL ESTATE OWNED - Schedule of Real Estate Properties (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Real estate owned held for investment, net	$ 81,728	$ 83,284
Mixed-Use Property \| FL
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Total real estate owned held for investment	84,300	84,300
Less: Accumulated depreciation and amortization	(2,572)	(1,016)
Real estate owned held for investment, net	81,728	83,284
Mixed-Use Property \| FL \| Land
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Total real estate owned held for investment	21,337	21,337
Mixed-Use Property \| FL \| Buildings and improvements
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Total real estate owned held for investment	52,224	52,224
Mixed-Use Property \| FL \| Lease intangibles \| In-place lease intangibles
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Total real estate owned held for investment	21,276	21,276
Mixed-Use Property \| FL \| Lease intangibles \| Above-market lease intangibles
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Total real estate owned held for investment	547	547
Mixed-Use Property \| FL \| Lease intangibles \| Below-market lease intangibles
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Total real estate owned held for investment	$ 11,084	$ 11,084

REAL ESTATE OWNED - Schedule _2

REAL ESTATE OWNED - Schedule of Intangible Lease Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Below-market lease intangibles, gross	$ (11,084)	$ (11,084)
Below-market lease intangibles, accumulated amortization	836	322
Total	(10,248)	(10,762)
In-place lease intangibles
Finite-Lived Intangible Assets [Line Items]
Gross	21,276	21,276
Accumulated Amortization	(1,927)	(767)
Total	19,349	20,509
Above-market lease intangibles
Finite-Lived Intangible Assets [Line Items]
Gross	547	547
Accumulated Amortization	(90)	(35)
Total	$ 457	$ 512

REAL ESTATE OWNED - Schedule _3

REAL ESTATE OWNED - Schedule of Amortization of Intangible Lease Assets and Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2024
In-place lease intangibles \| Expenses from real estate owned
Finite-Lived Intangible Assets [Line Items]
Expenses from real estate owned	$ 572	$ 1,160
Above-market lease intangibles \| Revenue from real estate owned
Finite-Lived Intangible Assets [Line Items]
Amortization of above- and below- market lease intangibles	(28)	(56)
Below-market lease intangibles \| Revenue from real estate owned
Finite-Lived Intangible Assets [Line Items]
Amortization of Below Market Lease	$ 257	$ 514

REAL ESTATE OWNED - Schedule _4

REAL ESTATE OWNED - Schedule of Estimated Net Amortization Intangible Lease Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Below Market Lease, Net, Amortization Income, Fiscal Year Maturity [Abstract]
Remainder of 2024	$ (514)
2025	(1,027)
2026	(618)
2027	(571)
2028	(542)
Thereafter	(6,976)
Total	(10,248)	$ (10,762)
In-place lease intangibles
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remainder of 2024	1,144
2025	2,232
2026	1,821
2027	1,701
2028	1,603
Thereafter	10,848
Total	19,349	20,509
Above-market lease intangibles
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remainder of 2024	56
2025	91
2026	76
2027	51
2028	41
Thereafter	142
Total	$ 457	$ 512

REAL ESTATE OWNED - Schedule _5

REAL ESTATE OWNED - Schedule of the Future Minimum Contractual Lease to be Received, Maturity (Details) $ in Thousands	Jun. 30, 2024 USD ($)
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]
Remainder of 2024	$ 5,020
2025	10,106
2026	10,224
2027	9,989
2028	9,976
Thereafter	34,332
Total	$ 79,647

DEBT - Schedule of Outstanding

DEBT - Schedule of Outstanding Balances and Total Commitments Under Financing Agreements (Details) - USD ($)	Jun. 30, 2024	May 31, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Outstanding Balance	$ 870,936,000		$ 894,817,000
Total Commitment	1,345,000,000		1,535,000,000
Secured term loan
Debt Instrument [Line Items]
Outstanding Balance	140,000,000	$ 10,000,000	150,000,000
Total Commitment	140,000,000		150,000,000
Wells Fargo Facility \| Revolving Credit Facility, Optional Commitment Amount
Debt Instrument [Line Items]
Total Commitment	500,000,000
CNB Facility \| Revolving Credit Facility, Optional Commitment Amount
Debt Instrument [Line Items]
Total Commitment	75,000,000
Current borrowing capacity	50,000,000
Secured Funding Facility
Debt Instrument [Line Items]
Outstanding Balance	625,936,000		639,817,000
Total Commitment	1,100,000,000		1,280,000,000
Secured Funding Facility \| Wells Fargo Facility
Debt Instrument [Line Items]
Outstanding Balance	216,487,000		208,540,000
Total Commitment	450,000,000		450,000,000
Secured Funding Facility \| Citibank Facility
Debt Instrument [Line Items]
Outstanding Balance	204,104,000		221,604,000
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	0		180,000,000
Secured Funding Facility \| Morgan Stanley Facility
Debt Instrument [Line Items]
Outstanding Balance	205,345,000		209,673,000
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 - Narrative (Details)

DEBT - Narrative (Details)		1 Months Ended		3 Months Ended		6 Months Ended		18 Months Ended
DEBT - Narrative (Details)	May 01, 2025 USD ($)	May 31, 2024 USD ($)	Jan. 31, 2024	Jun. 30, 2024 USD ($) extension	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) option extension loan	Jun. 30, 2023 USD ($)	Nov. 12, 2026	Nov. 01, 2025 USD ($)	Aug. 01, 2025 USD ($)	Feb. 01, 2025 USD ($)	Nov. 01, 2024 USD ($)	Aug. 01, 2024 USD ($)	Dec. 31, 2023 USD ($)
Funding agreements
Total Commitment				$ 1,345,000,000		$ 1,345,000,000								$ 1,535,000,000
Outstanding Balance				870,936,000		870,936,000								894,817,000
Outstanding Principal				$ 2,007,435,000		$ 2,007,435,000								2,158,045,000
SOFR
Funding agreements
Interest Rate				2%		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
Outstanding Balance				$ 105,000,000		$ 105,000,000
ACRC Lender CO LLC \| Multifamily \| Senior Mortgage Loans \| NY
Funding agreements
Outstanding Balance				105,000,000		105,000,000
Outstanding Principal				133,000,000		133,000,000
Secured Revolving Funding Facility \| Wells Fargo Facility
Funding agreements
Total Commitment				$ 450,000,000		$ 450,000,000
Number of extension periods available for maturity date \| extension				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
Number of extension periods available for maturity date \| extension				2		2
Extension period of maturity date						12 months
Non-utilization fee on average available balance (basis points)						0.25%
Non-utilization fee				$ 0	$ 0	$ 0	$ 0
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
Revolving Credit Facility, Optional Commitment Amount \| CNB Facility
Funding agreements
Total Commitment				75,000,000		75,000,000
CNB Facility \| CNB Facility
Funding agreements
Total Commitment				75,000,000		75,000,000
Non-utilization fee				71,000	71,000	$ 142,000	141,000
CNB Facility \| CNB Facility \| Federal Funds Rate
Funding agreements
Interest rate margin (as a percent)						2.25%
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 \| Maximum \| SOFR
Funding agreements
Interest rate margin (as a percent)						3.25%
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
Non-utilization fee on average available balance (basis points)						0.25%
Non-utilization fee				$ 30,000	$ 74,000	$ 104,000	$ 147,000
Non-utilization threshold percentage (less than) (as a percent)				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
Number of extension periods available for maturity date \| extension				1		1
Extension period of maturity date						12 months
Revolving Master Repurchase Facility \| Morgan Stanley Facility \| Minimum \| 30 day SOFR
Funding agreements
Interest rate margin (as a percent)						1.75%
Revolving Master Repurchase Facility \| Morgan Stanley Facility \| Maximum \| 30 day SOFR
Funding agreements
Interest rate margin (as a percent)						2.25%
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				$ 140,000,000		$ 140,000,000								150,000,000
Outstanding Balance		$ 10,000,000		140,000,000		140,000,000								$ 150,000,000
Aggregate principal amount				$ 140,000,000		$ 140,000,000
Repayments of debt		$ 10,000,000
Debt discount on initial draw down (as a percent)				0.051	0.046	0.048	0.046
Secured term loan \| Subsequent Event
Funding agreements
Total Commitment													$ 135,000,000
Secured term loan \| Forecast
Funding agreements
Total Commitment	$ 110,000,000								$ 90,000,000	$ 100,000,000	$ 120,000,000	$ 130,000,000
Interest rate during period	4.50%
Interest rate, increase (decrease)								0.25%
Interest rate, quarterly increase								4%

DERIVATIVE FINANCIAL INSTRUME_2

DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2023	Mar. 31, 2022
Interest Rate Swap \| Designated as Hedging Instrument
Derivative [Line Items]
Derivative, notional amount				$ 30,000
Interest Rate Cap
Derivative [Line Items]
Derivative, notional amount					$ 170,000
Other comprehensive income			$ 2,000
Gain on derivative	$ 266	$ 723
Interest Rate Cap \| Designated as Hedging Instrument
Derivative [Line Items]
Interest rate caps, fixed rate (percent)					0.50%

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Total commitments	$ 2,094,034	$ 2,274,584
Less: funded commitments	(2,007,435)	(2,158,045)
Total unfunded commitments	$ 86,599	$ 116,539

STOCKHOLDERS' EQUITY - Narrativ

STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Jul. 31, 2024	Jul. 25, 2023	Jun. 30, 2018
Class of Stock [Line Items]
Share repurchase program, authorized amount						$ 50
Repurchase Program
Class of Stock [Line Items]
Number of shares repurchased (in shares)	0	535,965	0	535,965
Stock repurchased, value		$ 4.6		$ 4.6
Stock repurchase average price (in dollars per share)	$ 8.58	$ 8.58	$ 8.58	$ 8.58
Subsequent Event
Class of Stock [Line Items]
Share repurchase program, authorized amount					$ 50
Restricted Stock \| Amended and Restated 2012 Equity Incentive Plan
Class of Stock [Line Items]
Shares available for grant (in shares)							5,015,000
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 - Schedule

STOCKHOLDERS' EQUITY - Schedule of Restricted Stock Award Activity and Future Anticipated Vesting (Details)	6 Months Ended
	Jun. 30, 2024 shares
Restricted stock activity
Balance at the beginning of the period (in shares)	1,097,581,000
Granted (in shares)	83,052,000
Vested (in shares)	(319,414,000)
Forfeited (in shares)	(46,163,000)
Balance at the end of the period (in shares)	815,056,000
Future Anticipated Vesting Schedule
Remainder of 2024 (in shares)	46,651
2025 (in shares)	376,570
2026 (in shares)	258,365
2027 (in shares)	133,470
2028 (in shares)	0
Total (in shares)	815,056
Restricted Stock \| Restricted Stock Grants—Directors
Restricted stock activity
Balance at the beginning of the period (in shares)	34,215,000
Granted (in shares)	83,052,000
Vested (in shares)	(32,964,000)
Forfeited (in shares)	0
Balance at the end of the period (in shares)	84,303,000
Future Anticipated Vesting Schedule
Remainder of 2024 (in shares)	42,366
2025 (in shares)	41,937
2026 (in shares)	0
2027 (in shares)	0
2028 (in shares)	0
Total (in shares)	84,303
Restricted Stock Units (RSUs) \| RSUs—Officers and Employees of the Manager
Restricted stock activity
Balance at the beginning of the period (in shares)	1,063,366,000
Granted (in shares)	0
Vested (in shares)	(286,450,000)
Forfeited (in shares)	(46,163,000)
Balance at the end of the period (in shares)	730,753,000
Future Anticipated Vesting Schedule
Remainder of 2024 (in shares)	4,285
2025 (in shares)	334,633
2026 (in shares)	258,365
2027 (in shares)	133,470
2028 (in shares)	0
Total (in shares)	730,753

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Earnings Per Share [Abstract]
Net income (loss) attributable to common stockholders, basic	$ (6,125)	$ (2,198)	$ (18,448)	$ (8,638)
Net income (loss) attributable to common stockholders, diluted	$ (6,125)	$ (2,198)	$ (18,448)	$ (8,638)
Divided by:
Basic weighted average shares of common stock outstanding (in shares)	54,426,112	54,347,204	54,411,255	54,468,752
Weighted average non-vested restricted stock and RSUs (in shares)	0	0	0	0
Diluted weighted average shares of common stock outstanding (in shares)	54,426,112	54,347,204	54,411,255	54,468,752
Basic earnings (loss) per common share (in dollars per share)	$ (0.11)	$ (0.04)	$ (0.34)	$ (0.16)
Diluted earnings (loss) per common share (in dollars per share)	$ (0.11)	$ (0.04)	$ (0.34)	$ (0.16)
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	809,063	716,983	808,299	699,896

INCOME TAX (Details)

INCOME TAX (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
INCOME TAX (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Components of the company's income tax provision
Total income tax expense (benefit), including excise tax	$ 0	$ (46)	$ 2	$ 64
ACRE Capital Sale
Components of the company's income tax provision
Current	0	9	0	19
Deferred	0	0	2	0
Excise tax	0	(55)	0	45
Total income tax expense (benefit), including excise tax	$ 0	$ (46)	$ 2	$ 64

FAIR VALUE - Narrative (Details

FAIR VALUE - Narrative (Details) $ in Millions	6 Months Ended	12 Months Ended
FAIR VALUE - Narrative (Details) $ in Millions	Jun. 30, 2024 USD ($) acre ft investment	Dec. 31, 2022 USD ($) loan	Dec. 31, 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 floating rate, investment grade rated		2.47%
Debt securities, available-for-sale, term		10 years
Number of debt security investments \| investment	3		3
Level 3
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Loans transferred to held for sale \| $	$ 20.5
Mixed-use \| Minimum \| Measurement Input, Cap Rate
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Real estate owned, measurement input	0.064
Mixed-use \| Minimum \| Measurement Input, Discount Rate
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Real estate owned, measurement input	0.080
Mixed-use \| Maximum \| Measurement Input, Cap Rate
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Real estate owned, measurement input	0.083
Mixed-use \| Maximum \| Measurement Input, Discount Rate
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Real estate owned, measurement input	0.095

FAIR VALUE - Schedule of Debt S

FAIR VALUE - Schedule of Debt Securities, Available-for-Sale (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Fair Value Disclosures [Abstract]
Face Amount	$ 28,000	$ 28,000
Amortized Cost	27,920	27,906
Unamortized Discount	80	94
Unrealized Gain (Loss), Net	$ 193	$ 154

FAIR VALUE - Schedule of Fair V

FAIR VALUE - Schedule of Fair Value, Assets Measured on Recurring Basis (Details) - Available-for-sale debt securities - Fair Value, Recurring - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets	$ 28,113	$ 28,060
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets	28,113	28,060
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets	$ 0	$ 0

FAIR VALUE - Schedule of Carryi

FAIR VALUE - Schedule of Carrying Value and Estimated Fair Value of the Company's Financial Instruments Not Carried at Fair Value on the Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Financial assets:
Loans held for investment	$ 1,972,551	$ 2,126,524
Financial liabilities:
Collateralized loan obligation securitization debt (consolidated VIEs)	588,421	723,117
Carrying Value
Financial assets:
Loans held for investment	1,972,551	2,126,524
Financial liabilities:
Secured funding agreements	625,936	639,817
Notes payable	104,751	104,662
Secured term loan	137,409	149,393
Collateralized loan obligation securitization debt (consolidated VIEs)	588,421	723,117
Fair Value \| Level 3
Financial assets:
Loans held for investment	1,823,784	1,944,718
Financial liabilities:
Secured term loan	126,984	134,024
Fair Value \| Level 2
Financial liabilities:
Secured funding agreements	625,936	639,817
Notes payable	105,000	105,000
Collateralized loan obligation securitization debt (consolidated VIEs)	$ 577,356	$ 705,033

RELATED PARTY TRANSACTIONS - Na

RELATED PARTY TRANSACTIONS - Narrative (Details)	3 Months Ended		6 Months Ended
RELATED PARTY TRANSACTIONS - Narrative (Details)	Jun. 30, 2024 USD ($) quarter loan	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) loan quarter	Jun. 30, 2023 USD ($)	Dec. 31, 2023 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			3
Management fee look back period			24 months
Loans held for investment	$ 1,972,551,000		$ 1,972,551,000		$ 2,126,524,000
Number of affiliates of company's manager that may originate commercial real estate loans (or more) \| loan			1
Residential
Related Party Transaction [Line Items]
Loans held for investment	249,500,000		$ 249,500,000		$ 236,700,000
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%
Related party transaction, number of fiscal quarter \| loan	3		3
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
Related Party Transaction [Line Items]
Incentive fees	$ 0	$ 334,000	$ 0	$ 334,000

RELATED PARTY TRANSACTIONS - Sc

RELATED PARTY TRANSACTIONS - Schedule of Related-Party Costs Incurred by the Company and Amounts Payable to the Manager (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Related Party Transaction [Line Items]
Payable	$ 4,526		$ 4,526		$ 4,135
ACREM \| Continuing Operations
Related Party Transaction [Line Items]
Incurred	4,041	$ 4,462	7,984	$ 8,226
ACREM \| Continuing Operations \| Management fees
Related Party Transaction [Line Items]
Incurred	2,692	3,000	5,460	6,010
ACREM \| Continuing Operations \| Incentive fees
Related Party Transaction [Line Items]
Incurred	0	334	0	334
ACREM \| Continuing Operations \| General and administrative expenses
Related Party Transaction [Line Items]
Incurred	1,277	1,109	2,409	1,842
ACREM \| Continuing Operations \| Direct costs
Related Party Transaction [Line Items]
Incurred	72	$ 19	115	$ 40
Related Party \| Continuing Operations
Related Party Transaction [Line Items]
Payable	4,526		4,526		4,135
Related Party \| Continuing Operations \| Management fees
Related Party Transaction [Line Items]
Payable	2,692		2,692		2,946
Related Party \| Continuing Operations \| Incentive fees
Related Party Transaction [Line Items]
Payable	0		0		0
Related Party \| Continuing Operations \| General and administrative expenses
Related Party Transaction [Line Items]
Payable	1,809		1,809		1,154
Related Party \| Continuing Operations \| Direct costs
Related Party Transaction [Line Items]
Payable	$ 25		$ 25		$ 35

DIVIDENDS AND DISTRIBUTIONS (De

DIVIDENDS AND DISTRIBUTIONS (Details) - USD ($) $ / shares in Units, $ in Thousands					3 Months Ended		6 Months Ended
	May 09, 2024	Feb. 22, 2024	May 02, 2023	Feb. 15, 2023	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
DIVIDENDS AND DISTRIBUTIONS
Dividends per share amount declared (in dollars per share)	$ 0.25	$ 0.25	$ 0.35	$ 0.35	$ 0.25	$ 0.35	$ 0.50	$ 0.70
Total cash dividends	$ 13,812	$ 13,802	$ 19,180	$ 19,345			$ 27,614	$ 38,525
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 ($)	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) loan	Jun. 30, 2023 USD ($)	Dec. 31, 2023 USD ($) loan	Jan. 11, 2019 USD ($)	Mar. 30, 2017 USD ($)
Variable Interest Entity [Line Items]
Assumption of real estate owned				$ 14,509	$ 0
Receivables related to repayments of outstanding principal on previous mortgage assets						$ 31,000
Loans held for investment		$ 1,972,551		1,972,551		$ 2,126,524
Credit risk, financial instrument, maximum exposure				166,500
ACRE Commercial Mortgage 2021-FL4 Ltd. and ACRE Commercial Mortgage 2021-FL4 LLC \| Preferred Stock
Variable Interest Entity [Line Items]
Stock issued during period, value, new issues	$ 64,300
Wholly Owned Subsidiary To Parent Company \| ACRE Commercial Mortgage 2021-FL4 Ltd. and ACRE Commercial Mortgage 2021-FL4 LLC \| Preferred Stock
Variable Interest Entity [Line Items]
Stock issued during period, value, new issues				$ 64,300
Wells Fargo Facility \| Notes Payable
Variable Interest Entity [Line Items]
Long-term debt								$ 308,800
Wells Fargo Facility \| Collateralized Loan Obligations
Variable Interest Entity [Line Items]
Long-term debt								$ 32,400
2019 FL3 CLO Securitization \| Wells Fargo Facility \| Notes Payable
Variable Interest Entity [Line Items]
Long-term debt							$ 504,100
2019 FL3 CLO Securitization \| Wells Fargo Facility \| Collateralized Loan Obligations
Variable Interest Entity [Line Items]
Long-term debt							$ 52,900
Floating Rate Notes, Weighted Average Coupon Rate, LIBOR Plus 1.85%
Variable Interest Entity [Line Items]
Number of properties collateralized for mortgage loan \| loan				15		16
Receivables related to repayments of outstanding principal		469,000		$ 469,000		$ 526,000
Offered Notes \| 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 \| Wholly Owned Subsidiary To Parent Company \| ACRE Commercial Mortgage 2021-FL4 Ltd. and ACRE Commercial Mortgage 2021-FL4 LLC
Variable Interest Entity [Line Items]
Repayments of debt		125	$ 759	97,200	42,900
Aggregate principal amount		62,500		62,500
Collateral amount		126,800		126,800
Secured, Floating Rate Notes \| Wholly Owned Subsidiary To Parent Company \| ACRE Commercial Mortgage 2021-FL3 Ltd. and ACRE Commercial Mortgage 2021-FL3 LLC
Variable Interest Entity [Line Items]
Repayments of debt		6,700	$ 0	$ 37,900	$ 0
FL4 Mortgage Assets
Variable Interest Entity [Line Items]
Number of properties collateralized for mortgage loan \| loan				5		9
Receivables related to repayments of outstanding principal		$ 272,200		$ 272,200		$ 404,100
Assumption of real estate owned				$ 14,500
Receivables related to repayments of outstanding principal on mortgage assets						$ 1,000

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Millions	Aug. 02, 2024	Sep. 30, 2024	Jun. 30, 2024
Subsequent Event [Line Items]
Cash dividends payable (in dollars per share)			$ 0.33
Subsequent Event \| Wells Fargo Facility
Subsequent Event [Line Items]
Covenant percentage of net proceeds raised in future equity issuances, used for computing tangible net worth to be maintained	80%
Debt Instrument, Covenant, Tangible Net Worth, Minimum	$ 500
Debt Instrument, Covenant, Maximum Debt Threshold, Amount	1,800
Citibank Facility and Morgan Stanley Facility \| Subsequent Event
Subsequent Event [Line Items]
Debt Instrument, Covenant, Tangible Net Worth, Minimum	500
CNB Facility \| Subsequent Event
Subsequent Event [Line Items]
Debt instrument, asset value covenant to tangible net worth to be maintained	635
Debt Instrument, Covenant, Tangible Net Worth, Minimum	$ 500
Forecast
Subsequent Event [Line Items]
Cash dividends payable (in dollars per share)		$ 0.25