Shares declined 1.8% as investors weighed unrealized valuation losses driven by macroeconomic volatility and geopolitical tensions, offsetting solid underlying net interest income growth. The market reacted cautiously despite stable operating execution and consistent securitization activity.

• Reported a GAAP net loss of $7.4 million ($0.30 per diluted share) due to $13.1 million in unrealized losses on loan portfolios, largely linked to increased rate volatility and geopolitical risks.
• Distributable earnings improved slightly to $4.6 million versus $4.1 million a year ago, reflecting steady operating performance net of fair value impacts.
• Net interest income grew 20% year-over-year to $12.1 million, with a 24% increase in interest income driven by targeted asset purchases and expanding net interest margin.
• Loan purchases totaled $246.2 million, maintaining conservative credit metrics with a weighted average coupon of 7.3%, CLTV of 67%, and credit score of 759.
• Operating expenses rose to $5.2 million, driven by higher professional services and loan diligence fees, with management expecting expenses to remain at similar levels going forward.