{"url_path":"/sec/cik-0001876255/10-q/2026/item-6","section_key":"item-6","section_title":"Item 6 [Exhibits](#exhibit)","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-14","source_url":"https://www.sec.gov/Archives/edgar/data/1876255/0001193125-26-223866-index.html","accession_number":"0001193125-26-223866","cik":"0001876255","ticker":null,"issuer_name":"AB Commercial Real Estate Private Debt Fund, LLC","edgar_url":"https://www.sec.gov/Archives/edgar/data/1876255/0001193125-26-223866-index.html","primary_entity_key":"0001876255","primary_entity_name":"AB Commercial Real Estate Private Debt Fund, LLC"},"word_count":13763,"has_tables":true,"body_markdown":"Item 6.\n\n[Exhibits](#exhibit)\n\n47\n\n \n\n[SIGNATURES](#signatures)\n\n48\n\n2\n\n \n\nAB Commercial Real Estate Private Debt Fund, LLC\n\nConsolidated Balance Sheets (in ‘000s except Common Units) (Unaudited)\n\n \n\n \n\nAs of\nMarch 31, 2026\n(Unaudited)\n\n \n\n \n\nAs of\nDecember 31,\n2025\n\n \n\nAssets\n\n \n\n \n\n \n\n \n\n \n\n \n\nLoan receivables held for investment, net, at amortized cost:\n\n \n\n \n\n \n\n \n\n \n\n \n\nMortgage loans receivable\n\n \n\n$\n\n1,300,208\n\n \n\n \n\n$\n\n1,107,555\n\n \n\nAllowance for credit losses\n\n \n\n \n\n(5,502\n\n)\n\n \n\n \n\n(4,439\n\n)\n\nCommercial debt securities, at fair value (cost of $17,700 and $7,700, respectively)\n\n \n\n \n\n17,692\n\n \n\n \n\n \n\n7,716\n\n \n\nEquity method investments\n\n \n\n \n\n43,704\n\n \n\n \n\n \n\n45,486\n\n \n\nCash and cash equivalents\n\n \n\n \n\n6,669\n\n \n\n \n\n \n\n21,324\n\n \n\nAccrued interest receivable\n\n \n\n \n\n5,217\n\n \n\n \n\n \n\n4,840\n\n \n\nOther assets\n\n \n\n \n\n50\n\n \n\n \n\n \n\n65\n\n \n\nDeferred financing costs, net\n\n \n\n \n\n1,286\n\n \n\n \n\n \n\n1,950\n\n \n\nTotal assets\n\n \n\n$\n\n1,369,324\n\n \n\n \n\n$\n\n1,184,497\n\n \n\nLiabilities and Members’ Capital\n\n \n\n \n\n \n\n \n\n \n\n \n\nLiabilities\n\n \n\n \n\n \n\n \n\n \n\n \n\nCredit facility\n\n \n\n$\n\n90,000\n\n \n\n \n\n$\n\n—\n\n \n\nRepurchase agreement\n\n \n\n \n\n630,539\n\n \n\n \n\n \n\n548,288\n\n \n\nNotes payable\n\n \n\n \n\n223,762\n\n \n\n \n\n \n\n223,762\n\n \n\nLiability for securities purchased\n\n \n\n \n\n10,000\n\n \n\n \n\n \n\n—\n\n \n\nDistribution payable\n\n \n\n \n\n6,841\n\n \n\n \n\n \n\n4,760\n\n \n\nRedemption payable\n\n \n\n \n\n3,701\n\n \n\n \n\n \n\n1,882\n\n \n\nRelated party payables and accrued expenses (see Note 9)\n\n \n\n \n\n947\n\n \n\n \n\n \n\n615\n\n \n\nIncentive fee payable (see Note 9)\n\n \n\n \n\n189\n\n \n\n \n\n \n\n101\n\n \n\nManagement fee payable (see Note 9)\n\n \n\n \n\n4,221\n\n \n\n \n\n \n\n2,794\n\n \n\nAccounts payable and accrued expenses\n\n \n\n \n\n4,144\n\n \n\n \n\n \n\n3,379\n\n \n\nOther liabilities\n\n \n\n \n\n610\n\n \n\n \n\n \n\n528\n\n \n\nTotal Liabilities\n\n \n\n$\n\n974,954\n\n \n\n \n\n$\n\n786,109\n\n \n\nMembers’ capital\n\n \n\n \n\n \n\n \n\n \n\n \n\nCommon units (42,213,046 and 42,420,090 units issued and outstanding\n   at March 31, 2026 and December 31, 2025, respectively)\n\n \n\n$\n\n409,992\n\n \n\n \n\n$\n\n411,932\n\n \n\nDistributions in excess of earnings\n\n \n\n \n\n(15,622\n\n)\n\n \n\n \n\n(13,544\n\n)\n\nTotal members’ capital\n\n \n\n \n\n394,370\n\n \n\n \n\n \n\n398,388\n\n \n\nTotal liabilities and members’ capital\n\n \n\n$\n\n1,369,324\n\n \n\n \n\n$\n\n1,184,497\n\n \n\n \n\nThe accompanying notes are an integral part of these consolidated financial statements.\n\n3\n\n \n\nAB Commercial Real Estate Private Debt Fund, LLC\n\nConsolidated Statements of Income (in ‘000s except Common Units) (Unaudited)\n\n \n\n \n\n \n\nFor the Three months Ended March 31,\n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\nNet interest income\n\n \n\n \n\n \n\n \n\n \n\n \n\nInterest income net of amortization/accretion\n\n \n\n$\n\n20,939\n\n \n\n \n\n$\n\n17,015\n\n \n\nInterest expense\n\n \n\n \n\n(12,155\n\n)\n\n \n\n \n\n(9,784\n\n)\n\nNet interest income\n\n \n\n \n\n8,784\n\n \n\n \n\n \n\n7,231\n\n \n\nProvision for credit losses\n\n \n\n \n\n(1,063\n\n)\n\n \n\n \n\n(15\n\n)\n\nNet interest income after provision for credit losses\n\n \n\n \n\n7,721\n\n \n\n \n\n \n\n7,216\n\n \n\nOperating Expenses:\n\n \n\n \n\n \n\n \n\n \n\n \n\nManagement fees\n\n \n\n \n\n1,427\n\n \n\n \n\n \n\n1,221\n\n \n\nIncentive fees\n\n \n\n \n\n88\n\n \n\n \n\n \n\n170\n\n \n\nProfessional fees\n\n \n\n \n\n452\n\n \n\n \n\n \n\n302\n\n \n\nAdministration and custodian fees\n\n \n\n \n\n546\n\n \n\n \n\n \n\n443\n\n \n\nOther expenses\n\n \n\n \n\n12\n\n \n\n \n\n \n\n10\n\n \n\nTotal operating expenses\n\n \n\n \n\n2,525\n\n \n\n \n\n \n\n2,146\n\n \n\nOther Income:\n\n \n\n \n\n \n\n \n\n \n\n \n\n(Loss) income from equity method investments\n\n \n\n \n\n(717\n\n)\n\n \n\n \n\n(681\n\n)\n\nOther income (loss)\n\n \n\n \n\n308\n\n \n\n \n\n \n\n681\n\n \n\nTotal Other (Loss) Income\n\n \n\n \n\n(409\n\n)\n\n \n\n \n\n—\n\n \n\nNet realized and unrealized gain (loss):\n\n \n\n \n\n \n\n \n\n \n\n \n\nUnrealized loss from commercial debt security\n\n \n\n \n\n(24\n\n)\n\n \n\n \n\n—\n\n \n\nNet realized and unrealized gain (loss):\n\n \n\n \n\n(24\n\n)\n\n \n\n \n\n—\n\n \n\nNet Income\n\n \n\n$\n\n4,763\n\n \n\n \n\n$\n\n5,070\n\n \n\nNet income per unit (basic and diluted)\n\n \n\n \n\n \n\n \n\n \n\n \n\nNet income per unit (basic and diluted)\n\n \n\n$\n\n0.11\n\n \n\n \n\n$\n\n0.14\n\n \n\nWeighted average units outstanding\n\n \n\n \n\n42,482,482\n\n \n\n \n\n \n\n36,398,943\n\n \n\n \n\nThe accompanying notes are an integral part of these consolidated financial statements.\n\n4\n\n \n\nAB Commercial Real Estate Private Debt Fund, LLC\n\nConsolidated Statements of Changes in Members’ Capital (in ‘000s except Common Units) (Unaudited)\n\n \n\n \n\nCommon Units\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nUnits\n\n \n\n \n\nPaid in Capital\n\n \n\n \n\nDistributions\nin Excess of Earnings\n\n \n\n \n\nTotal Members Capital\n\n \n\nMembers’ capital at December 31, 2025\n\n \n\n \n\n42,420,090\n\n \n\n \n\n$\n\n411,932\n\n \n\n \n\n$\n\n(13,544\n\n)\n\n \n\n$\n\n398,388\n\n \n\nIssuance of common units\n\n \n\n \n\n187,180\n\n \n\n \n\n \n\n1,761\n\n \n\n \n\n—\n\n \n\n \n\n \n\n1,761\n\n \n\nRedemption of common units\n\n \n\n \n\n(394,224\n\n)\n\n \n\n \n\n(3,701\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(3,701\n\n)\n\nNet Income\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n4,763\n\n \n\n \n\n \n\n4,763\n\n \n\nDistributions declared\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(6,841\n\n)\n\n \n\n \n\n(6,841\n\n)\n\nMembers' capital at March 31, 2026\n\n \n\n \n\n42,213,046\n\n \n\n \n\n$\n\n409,992\n\n \n\n \n\n$\n\n(15,622\n\n)\n\n \n\n$\n\n394,370\n\n \n\n \n\n \n\nCommon Units\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nUnits\n\n \n\n \n\nPaid in Capital\n\n \n\n \n\nDistributions\nin Excess of Earnings\n\n \n\n \n\nTotal Members Capital\n\n \n\nMembers’ capital at December 31, 2024\n\n \n\n \n\n36,290,817\n\n \n\n \n\n$\n\n354,488\n\n \n\n \n\n$\n\n(10,377\n\n)\n\n \n\n$\n\n344,111\n\n \n\nIssuance of common units\n\n \n\n \n\n324,379\n\n \n\n \n\n \n\n3,078\n\n \n\n \n\n—\n\n \n\n \n\n \n\n3,078\n\n \n\nRedemption of common units\n\n \n\n \n\n(310,499\n\n)\n\n \n\n \n\n(2,917\n\n)\n\n \n\n—\n\n \n\n \n\n \n\n(2,917\n\n)\n\nNet Income\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n5,070\n\n \n\n \n\n \n\n5,070\n\n \n\nDistributions declared\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(8,010\n\n)\n\n \n\n \n\n(8,010\n\n)\n\nMembers' capital at March 31, 2025\n\n \n\n \n\n36,304,697\n\n \n\n \n\n$\n\n354,649\n\n \n\n \n\n$\n\n(13,317\n\n)\n\n \n\n$\n\n341,332\n\n \n\n \n\nThe accompanying notes are an integral part of these consolidated financial statements.\n\n5\n\n \n\nAB Commercial Real Estate Private Debt Fund, LLC\n\nConsolidated Statements of Cash Flows (in ‘000s) (Unaudited)\n\n \n\n \n\nFor the Three Months\nEnded March 31, 2026\n\n \n\n \n\nFor the Three Months\nEnded March 31, 2025\n\n \n\nCash flows from operating activities\n\n \n\n \n\n \n\n \n\n \n\n \n\nNet income (loss)\n\n \n\n$\n\n4,763\n\n \n\n \n\n$\n\n5,070\n\n \n\nAdjustments to reconcile net income to net cash provided by\n   operating activities\n\n \n\n \n\n \n\n \n\n \n\n \n\nAmortization of net loan fees and discount/premiums on loans receivable\n\n \n\n \n\n(1,057\n\n)\n\n \n\n \n\n(675\n\n)\n\nLoss (income) from equity method investments\n\n \n\n \n\n717\n\n \n\n \n\n \n\n681\n\n \n\nDistributions of earnings from equity method investments\n\n \n\n \n\n—\n\n \n\n \n\n \n\n489\n\n \n\nAmortization of deferred financing costs\n\n \n\n \n\n714\n\n \n\n \n\n \n\n425\n\n \n\nProvision for credit losses\n\n \n\n \n\n1,063\n\n \n\n \n\n \n\n15\n\n \n\nUnrealized (gain) loss on commercial debt securities\n\n \n\n \n\n24\n\n \n\n \n\n \n\n—\n\n \n\nIncrease or decrease in operating assets and liabilities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n(Increase) decrease in accrued interest receivable\n\n \n\n \n\n(377\n\n)\n\n \n\n \n\n1,380\n\n \n\nDecrease (increase) in other assets\n\n \n\n \n\n15\n\n \n\n \n\n \n\n(17\n\n)\n\nIncrease (decrease) in management fees payable\n\n \n\n \n\n1,427\n\n \n\n \n\n \n\n(15\n\n)\n\nIncrease in accounts payable and accrued expenses\n\n \n\n \n\n765\n\n \n\n \n\n \n\n789\n\n \n\nIncrease (decrease) in related party payables and accrued expenses\n\n \n\n \n\n332\n\n \n\n \n\n \n\n(1,079\n\n)\n\nIncrease in reimbursement payable\n\n \n\n \n\n—\n\n \n\n \n\n \n\n307\n\n \n\nIncrease (decrease) in incentive fees payable\n\n \n\n \n\n88\n\n \n\n \n\n \n\n(477\n\n)\n\nIncrease (decrease) in other liabilities\n\n \n\n \n\n82\n\n \n\n \n\n \n\n(185\n\n)\n\nNet cash provided by operating activities\n\n \n\n \n\n8,556\n\n \n\n \n\n \n\n6,708\n\n \n\nCash flows from investing activities\n\n \n\n \n\n \n\n \n\n \n\n \n\nOrigination and purchase of mortgage loan receivables\n\n \n\n \n\n(222,270\n\n)\n\n \n\n \n\n(202,072\n\n)\n\nOrigination and other fees received on loans receivable\n\n \n\n \n\n2,769\n\n \n\n \n\n \n\n—\n\n \n\nSubsequent draws on mortgage loan receivables\n\n \n\n \n\n(1,563\n\n)\n\n \n\n \n\n(3,907\n\n)\n\nRepayment of mortgage loan receivables\n\n \n\n \n\n29,467\n\n \n\n \n\n \n\n126,156\n\n \n\nDistributions from equity method investments in excess of earnings\n\n \n\n \n\n1,065\n\n \n\n \n\n \n\n1,747\n\n \n\nNet cash (used in) investing activities\n\n \n\n \n\n(190,532\n\n)\n\n \n\n \n\n(78,076\n\n)\n\n \n\nThe accompanying notes are an integral part of these consolidated financial statements.\n\n6\n\n \n\n \n\n \n\n \n\nFor the Three Months\nEnded March 31, 2026\n\n \n\n \n\nFor the Three Months\nEnded March 31, 2025\n\n \n\nCash flows from financing activities\n\n \n\n \n\n \n\n \n\n \n\n \n\nIssuance of common units\n\n \n\n \n\n1,761\n\n \n\n \n\n \n\n3,078\n\n \n\nRedemption of common units\n\n \n\n \n\n(1,882\n\n)\n\n \n\n \n\n—\n\n \n\nDistributions paid\n\n \n\n \n\n(4,760\n\n)\n\n \n\n \n\n(8,269\n\n)\n\nDecrease in redemption payable\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(4,094\n\n)\n\nCredit facility borrowings\n\n \n\n \n\n205,000\n\n \n\n \n\n \n\n203,700\n\n \n\nCredit facility paydowns\n\n \n\n \n\n(115,000\n\n)\n\n \n\n \n\n(108,700\n\n)\n\nRepurchase agreement borrowings\n\n \n\n \n\n105,816\n\n \n\n \n\n \n\n41,300\n\n \n\nRepurchase agreement paydowns\n\n \n\n \n\n(23,564\n\n)\n\n \n\n \n\n(447\n\n)\n\nNotes payable paydowns\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(55,250\n\n)\n\nDeferred financing costs paid\n\n \n\n \n\n(50\n\n)\n\n \n\n \n\n(63\n\n)\n\nNet cash provided by financing activities\n\n \n\n \n\n167,321\n\n \n\n \n\n \n\n71,255\n\n \n\nNet increase in cash and cash equivalents\n\n \n\n \n\n(14,655\n\n)\n\n \n\n \n\n(113\n\n)\n\nCash and cash equivalents, beginning of period\n\n \n\n \n\n21,324\n\n \n\n \n\n \n\n10,913\n\n \n\nCash and cash equivalents, end of period\n\n \n\n$\n\n6,669\n\n \n\n \n\n$\n\n10,800\n\n \n\nSupplemental financing activities\n\n \n\n \n\n \n\n \n\n \n\n \n\nCash paid during the period for interest\n\n \n\n$\n\n11,671\n\n \n\n \n\n$\n\n9,128\n\n \n\nSupplemental disclosure of noncash investing activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\nLiability for securities purchased\n\n \n\n$\n\n10,000\n\n \n\n \n\n$\n\n—\n\n \n\nSupplemental disclosure of noncash financing activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\nRedemptions payable\n\n \n\n$\n\n3,701\n\n \n\n \n\n$\n\n2,917\n\n \n\nDistributions declared\n\n \n\n$\n\n6,841\n\n \n\n \n\n$\n\n—\n\n \n\nDividends reinvested\n\n \n\n$\n\n1,770\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nThe accompanying notes are an integral part of these consolidated financial statements.\n\n \n\n7\n\n \n\nAB Commercial Real Estate Private Debt Fund, LLC\n\nNotes to the Unaudited Consolidated Financial Statements\n\nMarch 31, 2026\n\n1.\nOrganization and Business Purpose\n\nAB Commercial Real Estate Private Debt Fund, LLC (the “Company”) is a Delaware limited liability company formed on June 1, 2021 (“Formation”) to operate as a private investment entity generally for qualified US investors. The Company has elected to be taxed as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Code”). The investment objective of the Company is to generate attractive risk-adjusted returns through investments primarily in loans secured by high quality commercial real estate properties located in the United States. The Company will seek to prioritize capital preservation and deliver predictable and durable income by investing primarily in directly originated first mortgage loans, senior and junior mezzanine loans, B-notes, second mortgages or other subordinated loans. To a lesser extent, the Company will invest in the following: legacy, new issue, and single-borrower commercial mortgage backed securities (“CMBS”); commercial real estate-related securities; performing, sub-performing and non-performing/distressed loans; and net leased assets. While the Company intends to focus mainly on loans directly secured by commercial real estate-related assets, it will also have the flexibility to invest in other types of debt investments, including unsecured debt of entities that directly or indirectly own real property or real estate-related debt, and may invest in commercial real estate-related preferred and common equity interests where doing so is in keeping with the investment objective.\n\nThe Company conducts private offerings of its Units to investors in reliance on exemptions from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”). The Company’s initial private offering of Units (the “Private Offering”) has been conducted in reliance on Regulation D under the Securities Act. Any investors in our Private Offering are required to be “accredited investors” as defined in Regulation D of the Securities Act. The limited liability company units in the Company (the “Units”) are registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) pursuant to a Form 10 Registration Statement (the “Form 10 Registration Statement”). Accordingly, the Company is currently required to comply with certain reporting requirements set forth in the Exchange Act, including the filing of annual, quarterly and current reports, proxy statements and other information with the U.S. Securities and Exchange Commission (the “SEC”).\n\nAllianceBernstein L.P. (the “Investment Manager” or “AllianceBernstein”), a Delaware limited partnership and an affiliate of a shareholder, will serve as the investment manager of the Company pursuant to the Management Agreement. The investment management services provided by the Investment Manager will be in accordance with the Company’s investment objectives and policies. The Investment Manager is registered with the U.S. Securities and Exchange Commission (the “SEC”) as an investment adviser under the Investment Advisers Act of 1940, as amended (the “Advisers Act”). Pursuant to the Management Agreement, the Investment Manager is responsible for management of the portfolio of the Company and any subsidiary.\n\nThe Company commenced operations during December 2021.\n\n2.\nSignificant Accounting Policies\n\nThe following is a summary of significant accounting policies followed by the Company.\n\nBasis of Presentation and Consolidation\n\nThe accompanying consolidated financial statements and related notes of the Company are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).\n\nThe Company will generally consolidate entities (i) it controls through either majority ownership or voting rights or (ii) management determines that the Company is the primary beneficiary of entities deemed to be variable interest entities (“VIEs”). Accordingly, the Company consolidated the results of its subsidiaries (AB CRE PDF Member I LLC, a wholly owned entity formed to hold assets and be the borrower under the Company’s repurchase agreement, AB CRE PDF Athena LLC, a wholly owned entity formed to hold assets and be the borrower under the Company’s repurchase agreement, AB CRE PDF Lending C LLC, a wholly-owned subsidiary formed to hold assets and be the borrower under the Company’s repurchase agreement and AB CRE PDF TNVA1 LLC, a wholly owned entity formed to hold assets and be the borrower under the Company’s repurchase agreement—see Note 9) in its consolidated financial statements. All intercompany balances and transactions have been eliminated in consolidation.\n\n8\n\n \n\nUse of Estimates\n\nThe preparation of these financial statements require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Changes in the economic environment, financial markets and any other parameters used in determining such estimates could cause actual results to differ.\n\nCommercial debt securities\n\nInvestments in commercial debt securities are recorded in accordance with ASC 320-10, “Investments – Debt and Equity Securities”. The Company has chosen to make a fair value election pursuant to ASC 825, “Financial Instruments” for its commercial debt securities portfolio. These securities are recorded at fair value on the consolidated balance sheets and the periodic change in fair value is recorded in current period earnings on the consolidated statement of income as a component of “Net unrealized gain/(loss).” Purchases and sales of commercial debt securities are recorded on the trade date. The Company accrues interest income in commercial debt securities using the effective interest method.\n\nMortgage Loan Receivables Held for Investment\n\nLoans for which the Company has the intention and ability to hold for the foreseeable future, or until maturity or payoff, are reported at their outstanding principal balances net of any unearned income, unamortized deferred fees or costs, allowance for credit losses, and premiums or discounts. Loan origination fees and direct loan origination costs are deferred and recognized in interest income over the estimated life of the loans using the effective interest method, adjusted for actual prepayments. Upon the decision to sell such loans, the Company will transfer the loan from mortgage loan receivables held for investment to mortgage loan receivables held for sale at the lower of carrying value or fair value on the consolidated balance sheets.\n\nProvision for Loan Losses\n\nThe Company uses a current expected credit loss model (“CECL”) for estimating the provision for loan losses on its loan portfolio. The CECL model requires the consideration of possible credit losses over the life of an instrument and includes a portfolio-based component and an asset-specific component. In compliance with the CECL reporting requirements, the Company supplemented its existing credit monitoring and management processes with additional processes to support the calculation of the CECL reserves. The credit loss model is a forward-looking, econometric, commercial real estate loss forecasting tool. It is comprised of a probability of default model and a loss given default model that, layered together with user’s loan-level data, selected forward-looking macroeconomic variables, and pool-level mean loss rates, produces life of loan expected losses at the loan and portfolio level. Where management has determined that the credit loss model does not fully capture certain external factors, including portfolio trends or loan-specific factors, a qualitative adjustment to the reserve, is recorded.\n\nThe asset-specific reserve component relates to reserves for losses on individually impaired loans. The Company evaluates each loan for impairment at least quarterly. Impairment occurs when it is deemed probable that the Company will not be able to collect all amounts due according to the contractual terms of the loan. If the loan is considered to be impaired, an allowance is recorded to reduce the carrying value of the loan to the present value of the expected future cash flows discounted at the loan’s effective rate or the fair value of the collateral, less the estimated costs to sell, if recovery of the Company’s investment is expected solely from the collateral. The Company may use the direct capitalization rate valuation methodology or the sales comparison approach to estimate the fair value of the collateral for such loans and in certain cases will obtain external appraisals and take into account potential sale bids. Determining fair value of the collateral may take into account a number of assumptions including, but not limited to, cash flow projections, market capitalization rates, discount rates and data regarding recent comparable sales of similar properties. Such assumptions are generally based on current market conditions and are subject to economic and market uncertainties.\n\nThe Company’s loans are typically collateralized by real estate directly or indirectly. As a result, the Company regularly evaluates the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral property as well as the financial and operating capability of the borrower/sponsor on a loan-by-loan basis. Specifically, a property’s operating results and any cash reserves are analyzed and used to assess (i) whether cash flow from operations is sufficient to cover the debt service requirements currently and into the future, (ii) the ability of the borrower to refinance the loan at maturity, and/or (iii) the property’s liquidation value. The Company also evaluates the financial wherewithal of any loan guarantors as well as the borrower’s competency in managing and operating the properties. In addition, the Company considers the overall economic environment, real estate sector, and geographic submarket in which the collateral property is located. Such impairment analyses are completed and reviewed by asset management and underwriting personnel, who utilize various data sources, including (i) periodic financial data such as property occupancy, tenant profile, rental rates,\n\n9\n\n \n\noperating expenses, the borrowers’ business plan, and capitalization and discount rates, (ii) site inspections, and (iii) current credit spreads and other market data and ultimately presented to management for approval.\n\nThe allowance for credit losses was $5.5 million and $4.4 million at March 31, 2026 and December 31, 2025, respectively, and is included in the accompanying consolidated balance sheets. During the three months ended March 31, 2026 and March 31, 2025, this allowance was impacted by an increase of $1.1 million and $15 thousand, respectively, in allowance for credit losses as reflected in the accompanying consolidated statements of income.\n\nThe following table presents the provision for loan losses roll forward for the three Months Ended March 31, 2026 and March 31, 2025.\n\n \n\n \n\nFor the Three Months Ended March 31, 2026\n\n \n\n \n\nFor the Three Months Ended March 31, 2025\n\n \n\n \n\nBeginning Balance\n\n \n\n$\n\n4,439\n\n \n\n \n\n$\n\n6,127\n\n \n\n \n\nProvision for loan losses\n\n \n\n \n\n1,063\n\n \n\n \n\n \n\n15\n\n \n\n \n\nCharge-offs\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\nEnding Balance\n\n \n\n$\n\n5,502\n\n \n\n \n\n$\n\n6,142\n\n \n\n \n\n \n\nNon-accrual loans\n\nThe Company designates non-accrual loans generally when (i) the principal or coupon interest components of loan payments become 90-days past due or (ii) in the opinion of the Company, it is doubtful the Company will be able to collect all amounts due according to the contractual terms of the loan. Interest income on non-accrual loans in which the Company reasonably expects a full recovery of the loan’s outstanding principal balance is recognized when received in cash. Otherwise, income recognition will be suspended and any cash received will be applied as a reduction to the amortized cost. A non-accrual loan is returned to accrual status at such time as the loan becomes contractually current and future principal and coupon interest are reasonably assured to be received in accordance with the contractual loan terms. A loan will be written off when management has determined it is no longer realizable and deemed non-recoverable. The Company has no non-accrual loans as of March 31, 2026, and one non-accrual loan as of March 31, 2025, which the Company believed was not determined to be impaired as of March 31, 2025.\n\nValuation of Financial Instruments\n\nThe Company discloses (see Note 7) the value of its financial instruments at fair value in accordance with Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosure (“ASC Topic 820”) issued by the Financial Accounting Standards Board (the “FASB”). Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.\n\nThe Investment Manager, which is subject to oversight by our Board, makes this fair value determination on a quarterly basis and any other time when a decision regarding the fair value of the portfolio investments is required. A determination of fair value involves subjective judgments and estimates and depends on the facts and circumstances. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the investments may differ significantly from the values that would have been used had a readily available market value existed for such investments, and the differences could be material.\n\nASC Topic 820 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. ASC Topic 820 also provides guidance regarding a fair value hierarchy, which prioritizes information used to measure fair value and the effect of fair value measurements on earnings and provides for enhanced disclosures determined by the level within the hierarchy of information used in the valuation. In accordance with ASC Topic 820, these inputs are summarized in the three levels listed below:\n\n•\nLevel 1—Valuations are based on quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date.\n\n•\nLevel 2—Valuations are based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly and model-based valuation techniques for which all significant inputs are observable.\n\n•\nLevel 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models incorporating significant\n\n10\n\n \n\nunobservable inputs, such as discounted cash flow models and other similar valuations techniques. The valuation of Level 3 assets and liabilities generally requires significant management judgment due to the inability to observe inputs to valuation.\n\nIn certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of observable input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the investment.\n\n \n\nUnder ASC Topic 820, the fair value measurement also assumes that the transaction to sell an asset occurs in the principal market for the asset or, in the absence of a principal market, the most advantageous market for the asset, which may be a hypothetical market, and excludes transaction costs. The principal market for any asset is the market with the greatest volume and level of activity for such asset in which the reporting entity would or could sell or transfer the asset. In determining the principal market for an asset or liability under ASC Topic 820, it is assumed that the reporting entity has access to such market as of the measurement date. Market participants are defined as buyers and sellers in the principal or most advantageous market that are independent, knowledgeable and willing and able to transact.\n\nThe value of any investment on any valuation date is intended to represent the fair value of such investment on such date based upon the amount at which the investment could be exchanged between willing parties, other than in a forced liquidation sale, and reflects the Board’s determination of fair value using the methodology described herein. Any valuation of an investment may not reflect the actual amount received by the Company upon the liquidation of such investment.\n\nThe Company’s investments are expected to mostly be considered Level 3 assets under ASC Topic 820 because the investments will generally not have identical assets or liabilities with quoted prices in active markets and will generally not have all significant inputs observable. Estimates of fair value for the Commercial Debt Securities are measured using observable, quoted market prices, in inactive markets, or Level 2 inputs.\n\nFair values for commercial real estate loans are measured by discounting future contractual cash flows to be received on the mortgage loan using a discount rate that is derived from observations in the market of discount rates on similar loans with similar credit characteristics and tenor. The discount rate is typically expressed as a spread to Treasuries of a similar tenor if the loan is fixed rate or if floating, as a discount margin to the floating rate index described in the mortgage. The spread or discount margin is reflective of the risk premium associated with the specific loan. Loans that are experiencing deteriorating credit fundamentals, delinquencies, or are anticipated to be foreclosed upon will tend to have higher spreads or discount margins reflecting their higher credit risk. Loans that are experiencing improving fundamentals will correspondingly have lower spreads or discount margins reflecting their improving credit quality.\n\nEquity Method Investments\n\nThe Company accounts for its investments in unconsolidated entities under the equity method of accounting. The Company applies the equity method by initially recording these investments at cost, as equity method investments, subsequently adjusted for equity in earnings and cash contributions and distributions. In some instances, the reporting period of the investments’ financial statements lags the Company’s financial reporting period, but such lag is never more than three months. In the event there is an outside basis portion of the Company’s equity method investments, it is amortized over the anticipated useful lives of the underlying entities’ tangible and intangible assets acquired and liabilities assumed.\n\nIn the third quarter of 2025, the Company received a 6.33% interest, in one VIE through foreclosure of a mixed use property underlying a delinquent commercial mortgage loan. The entity was determined to be a VIE but the Company was not determined to be the primary beneficiary; as a result, the investment in the entity is considered an equity method investment.\n\nThe Company evaluates equity investments on a periodic basis to determine if there are any indicators that the value of the equity investment may be impaired and whether or not that impairment is other-than-temporary. To the extent an impairment has occurred and is determined to be other-than-temporary, we measure the charge as the excess of the carrying value of our investment over its estimated fair value.\n\nThe Company classifies distributions received from equity method investments using the cumulative earnings approach. Distributions received are considered returns on the investment and classified as cash inflows from operating activities. If, however, the investor’s cumulative distributions received, less distributions received in prior periods determined to be returns of investment, exceeds cumulative equity in earnings recognized, the excess is considered a return of investment and is classified as cash inflows from investing activities.\n\n11\n\n \n\nCash and Cash Equivalents\n\nCash and cash equivalents include cash and short-term investments with original maturities of three months or less at the date of acquisition. Cash and cash equivalents typically include amounts held in interest bearing overnight accounts and amounts held in money market funds, and these balances generally exceed insured limits. The Company holds its cash at institutions that it believes to be highly creditworthy.\n\nRepurchase Agreements\n\nThe Company finances certain of its mortgage loan receivables using repurchase agreements. Under a repurchase agreement, an asset is sold to a counterparty to be repurchased at a future date at a predetermined price. The Company accounts for these repurchase agreements as financings under Accounting Standards Codification 860-10-40.\n\nRevenue Recognition\n\nInterest income, adjusted for amortization of market premium and accretion of market discount, is recorded on an accrual basis to the extent amounts are expected to be collected. Original issue discount and market discount or premium are capitalized and are accreted or amortized into income over the life of the respective security using the effective interest method. Loan origination fees received in connection with the closing of investments are reported as unearned income which is included as amortized cost of the investment; the unearned income from such fees is accreted over the contractual life of the loan based using the effective interest method up to the maturity date of the loan. Upon prepayment of a loan or debt security, any prepayment penalties, unamortized loan origination fees, and unamortized market discounts are recorded as income.\n\nDeferred Financing Costs\n\nDeferred financing costs include capitalized expenses related to the closing of the debt obligations. Amortization of deferred financing costs is computed on the straight-line basis over the contractual term for both the Credit Facility, Repurchase Agreement and Notes Payable. The amortization of such costs is included in interest expense in the consolidated statements of income, with any unamortized amounts included in deferred financing costs on the consolidated balance sheets.\n\nIncome Taxes\n\nThe Company has elected to be taxed as a REIT under Sections 856 through 860 of the Code for U.S. federal income tax purposes commencing with our taxable year that begins on the date of our Initial Closing. To qualify as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement that it distributes at least 90% of our REIT taxable income, subject to certain adjustments and excluding any net capital gain, to the Members. The Company intends to adhere to the REIT qualification requirements and to maintain our qualification for taxation as a REIT.\n\nAs a REIT, the Company is generally not subject to U.S. federal corporate income tax on the portion of taxable income that is distributed to the Members. If the Company fails to qualify for taxation as a REIT in any taxable year, it may be subject to U.S. federal income taxes at regular corporate rates and it may not be able to qualify as a REIT for four subsequent taxable years. As a REIT, the Company may be subject to certain state and local taxes on our income and property, and to U.S. federal income and excise taxes on undistributed taxable income. Taxable income from non-REIT activities is taxable to the extent it is subject to U.S. federal, state, and local income taxes at the applicable rates.\n\nThe Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax basis, and for net operating loss, capital loss and tax credit carryforwards. The deferred tax assets and liabilities are measured using the enacted income tax rates in effect for the year in which those temporary differences are expected to be realized or settled. The effect on the deferred tax assets and liabilities from a change in tax rates is recognized in earnings in the period when the new rate is enacted. However, deferred tax assets are recognized only to the extent that it is more likely than not that they will be realized based on consideration of all available evidence, including the future reversals of existing taxable temporary differences, future projected taxable income and tax planning strategies. Valuation allowances are provided if, based upon the weight of the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company performs an annual review for any uncertain tax positions and, if necessary, will record the expected future tax consequences of uncertain tax positions in the consolidated financial statements.\n\n12\n\n \n\nSegment Reporting\n\nThe Company represents a single operating segment originating and acquiring commercial mortgage loans and related investments. An operating segment is defined in U.S. GAAP as a component of a public entity that engages in business activities from which it may recognize revenues and incur expenses, has operating results that are regularly reviewed by the public entity’s chief operating decision maker (“CODM”) to make decisions about resources to be allocated to the segment and assess its performance, and has discrete financial information available. The Company’s Chief Executive Officer and Chief Financial Officer are collectively the CODM. The CODM monitors the operating results of the Company as a whole and the pre-determined Company’s long term investment strategy, which is executed by the Company’s management group. The qualitative and quantitative information contained within the consolidated financial statements is used by the CODM to assess the segments' performance versus the Company’s comparative benchmark and to make resource allocation decisions. Segment assets are reflected on the consolidated balance sheets and segment expenses are listed on the consolidated statements of income. The accounting policies of the Company segment are the same as those described in the summary of significant accounting policies. The CODM assesses performance for the segment based on net income, which is reported on the income statement as consolidated net income. The measure of segment assets is reported on the balance sheet as total consolidated assets. The significant segment expenses are those that are reported on the income statement. For the three months ended March 31, 2026, there were no commercial real estate loan borrowers who individually accounted for more than 10% of our consolidated gross income.\n\nRecent Accounting Pronouncements\n\nIn November 2024, the FASB issued ASU 2024-03, “Income Statement - Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” (“ASU 2024-03”). ASU 2024-03 requires public entities to disaggregate specific types of expenses, including disclosures for depreciation, intangible asset amortization, and selling expenses. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, with prospective application required and retrospective application or early adoption permitted. We are currently evaluating the impact from adopting ASU 2024-03 on our consolidated financial statements and disclosures.\n\nIn August 2023, the FASB issued Accounting Standards Update (“ASU”) No. 2023-05, “Business Combinations - Joint Venture Formations.” This ASU addresses the accounting for contributions made to a joint venture, upon formation, in a joint venture's separate financial statements . The ASU is effective for all joint venture formations with a formation date on or after January 1, 2025. The Company has adopted ASU 2023-05 prospectively and the ASU did not have a material impact on the Company's consolidated financial statements.\n\n3.\nCapital Commitments\n\nThe following information sets forth the capital commitments of the Company as of March 31, 2026 and December 31, 2025 (in '000s):\n\n \n\n \n\nAs of March 31, 2026\n\n \n\n \n\nAs of\nDecember 31,\n2025\n\n \n\nCapital Commitments\n\n \n\n$\n\n783,454\n\n \n\n \n\n$\n\n787,833\n\n \n\nCapital Funded(1)\n\n \n\n \n\n377,887\n\n \n\n \n\n \n\n381,142\n\n \n\nUnfunded Capital Commitments\n\n \n\n$\n\n405,567\n\n \n\n \n\n$\n\n406,691\n\n \n\n \n\n(1) Excludes cumulative amounts reinvested totaling $33.8 million and $32.1 million as of March 31, 2026 and December 31, 2025, respectively.\n\n \n\nFor the periods ended March 31, 2026 and December 31, 2025 the Company received a request to redeem 394,224 and 1,421,318 common units, respectively.\n\nWith respect to each capital commitment made by a Member, the Member will be required to either (i) opt into the Company’s reinvestment plan (the “Reinvestment Plan”), whereby the Member will have its current income distributions automatically withheld and reinvested into the Company (with additional Units of the Company corresponding to such reinvestment being issued to such Member), which is referred to as a “Reinvestment Election”, or (ii) opt out of the Reinvestment Plan, which is referred to as a “Distribution Election”, in each case, as elected in the Company’s subscription agreement (the “Subscription\n\n13\n\n \n\nAgreement”) of such Member. Any Member that does not make any such election in its Subscription Agreement will, by default, be deemed to have made a “Distribution Election.”\n\nThe Company entered into separate subscription agreements with a number of investors for the Private Offering. Each investor will make a capital commitment (a “Capital Commitment”) to purchase Units pursuant to a subscription agreement (a “Subscription Agreement”). We refer to the initial date on which Capital Commitments were first accepted by or on behalf of the Company from Members as the “Initial Closing,” and each such date on which Capital Commitments are accepted as a “closing.” Thereafter, subsequent closings for additional Capital Commitments from new and existing Members may generally be held as of the end of the calendar quarter, subject to our discretion to hold closings at any other time.\n\nEach Capital Commitment made by a Member at a closing will have its own lock-up period (a “Lock-Up Period”). The Lock- Up Period for each Capital Commitment will be the period commencing on the applicable closing and ending on the third anniversary of such closing. Upon the expiration of a Member’s Lock-Up Period, such Member may choose to be released from its Remaining Commitment (as defined below), subject to certain post-commitment period obligations.\n\nA Member’s “Remaining Commitment” will be equal to such Capital Commitment reduced by amounts contributed to the Company in respect of capital calls and post-commitment period capital calls and increased by (i) the amount of any unused capital contributions that are returned to such Member pursuant to the last sentence of the following paragraph and (ii) distributions to such Member that represent a return of capital (and not Current Income (as defined below)). Each Capital Commitment made by a Member will be accounted for separately, including for purposes of determining Remaining Commitments and capital calls. In no event will a Member be required to make a capital contribution in respect of its Capital Commitment in excess of its Remaining Commitment.\n\n14\n\n \n\nEach Capital Commitment (or a portion thereof, as applicable) of a Member will last until (i) the Company determines to repurchase all or any portion of such Member’s Units that are attributable to such Capital Commitment (or such portion thereof, as applicable), as discussed below (which for the avoidance of doubt, will not become available pursuant to a Member’s repurchase request until the expiration of the Lock-Up Period), (ii) such Member has chosen to be released from its Remaining Commitments after the expiration of its Lock-Up Period (except with respect to post commitment period obligations) or (iii) the Company has elected to wind up.\n\n4.\nLoan Receivables Held for Investment\n\nDuring the three-month period ended March 31, 2026, Loan 1 was repaid at par and Loans 25 and 26 were originated. The following table summarizes the Company’s investments in loan receivables held for investment as of March 31, 2026 (in ‘000s):\n\n \n\nInvestment\n\n \n\nInvestment\nType\n\n \n\nLoan\nType\n\n \n\nOrigination\nDate\n\n \n\nTotal\nCommitment\n\n \n\n \n\nLoan\nBalance\n\n \n\n \n\nContractual\nInterest\nRate\n\n \n\nCarrying Value at March 31, 2026\n\n \n\n \n\nInterest\nrate at\nMarch 31, 2026(1)\n\n \n\n \n\nMaturity\nDate\n\n \n\nPayment\nTerms\n\nLoan 5\n\n \n\nLoan origination\n\n \n\nOffice\n\n \n\n7/14/2022\n\n \n\n$\n\n55,935\n\n \n\n \n\n$\n\n55,935\n\n \n\n \n\nSOFR + 4.25%\n\n \n\n$\n\n55,935\n\n \n\n \n\n \n\n7.92\n\n%\n\n \n\n8/5/2026\n\n \n\nInterest only\n\nLoan 6\n\n \n\nPurchase\n\n \n\nHospitality\n\n \n\n7/7/2022\n\n \n\n$\n\n27,748\n\n \n\n \n\n$\n\n27,748\n\n \n\n \n\nSOFR + 4.75%\n\n \n\n$\n\n27,748\n\n \n\n \n\n \n\n8.42\n\n%\n\n \n\n7/5/2026\n\n \n\nInterest only\n\nLoan 8\n\n \n\nLoan origination\n\n \n\nIndustrial\n\n \n\n3/10/2023\n\n \n\n$\n\n35,366\n\n \n\n \n\n$\n\n35,366\n\n \n\n \n\nSOFR + 3.50%\n\n \n\n$\n\n35,282\n\n \n\n \n\n \n\n7.17\n\n%\n\n \n\n3/10/2027\n\n \n\nInterest only\n\nLoan 9\n\n \n\nPurchase\n\n \n\nStudent Housing\n\n \n\n3/31/2023\n\n \n\n$\n\n105,256\n\n \n\n \n\n$\n\n105,256\n\n \n\n \n\nSOFR + 2.25%\n\n \n\n$\n\n105,256\n\n \n\n \n\n \n\n5.92\n\n%\n\n \n\n8/9/2026\n\n \n\nInterest only\n\nLoan 12\n\n \n\nLoan origination\n\n \n\nHospitality\n\n \n\n5/7/2024\n\n \n\n$\n\n30,000\n\n \n\n \n\n$\n\n30,000\n\n \n\n \n\nSOFR + 4.00%\n\n \n\n$\n\n29,880\n\n \n\n \n\n \n\n7.67\n\n%\n\n \n\n5/10/2027\n\n \n\nInterest only\n\nLoan 14\n\n \n\nLoan origination\n\n \n\nMultifamily\n\n \n\n6/11/2024\n\n \n\n$\n\n100,000\n\n \n\n \n\n$\n\n100,000\n\n \n\n \n\nSOFR + 3.75%\n\n \n\n$\n\n99,583\n\n \n\n \n\n \n\n7.42\n\n%\n\n \n\n7/10/2027\n\n \n\nInterest only\n\nLoan 15\n\n \n\nLoan origination\n\n \n\nOffice\n\n \n\n12/17/2024\n\n \n\n$\n\n58,773\n\n \n\n \n\n$\n\n58,721\n\n \n\n \n\nSOFR + 4.50%\n\n \n\n$\n\n58,482\n\n \n\n \n\n \n\n8.17\n\n%\n\n \n\n1/9/2027\n\n \n\nInterest only\n\nLoan 16\n\n \n\nLoan origination\n\n \n\nMultifamily\n\n \n\n2/11/2025\n\n \n\n$\n\n65,155\n\n \n\n \n\n$\n\n62,737\n\n \n\n \n\nSOFR + 2.35%\n\n \n\n$\n\n62,410\n\n \n\n \n\n \n\n6.02\n\n%\n\n \n\n3/9/2027\n\n \n\nInterest only\n\nLoan 17\n\n \n\nLoan origination\n\n \n\nMultifamily\n\n \n\n2/11/2025\n\n \n\n$\n\n79,650\n\n \n\n \n\n$\n\n69,527\n\n \n\n \n\nSOFR + 2.45%\n\n \n\n$\n\n69,127\n\n \n\n \n\n \n\n6.12\n\n%\n\n \n\n3/9/2027\n\n \n\nInterest only\n\nLoan 18\n\n \n\nLoan origination\n\n \n\nMultifamily\n\n \n\n3/26/2025\n\n \n\n$\n\n81,900\n\n \n\n \n\n$\n\n77,846\n\n \n\n \n\nSOFR + 2.35%\n\n \n\n$\n\n77,275\n\n \n\n \n\n \n\n6.02\n\n%\n\n \n\n4/9/2028\n\n \n\nInterest only\n\nLoan 19\n\n \n\nLoan origination\n\n \n\nOffice\n\n \n\n6/5/2025\n\n \n\n$\n\n49,300\n\n \n\n \n\n$\n\n35,167\n\n \n\n \n\nSOFR + 4.15%\n\n \n\n$\n\n34,808\n\n \n\n \n\n \n\n7.82\n\n%\n\n \n\n6/9/2028\n\n \n\nInterest only\n\nLoan 20\n\n \n\nLoan origination\n\n \n\nIndustrial\n\n \n\n6/30/2025\n\n \n\n$\n\n123,000\n\n \n\n \n\n$\n\n120,371\n\n \n\n \n\nSOFR + 2.10%\n\n \n\n$\n\n119,579\n\n \n\n \n\n \n\n5.77\n\n%\n\n \n\n7/9/2027\n\n \n\nInterest only\n\nLoan 21\n\n \n\nLoan origination\n\n \n\nHospitality\n\n \n\n7/21/2025\n\n \n\n$\n\n26,562\n\n \n\n \n\n$\n\n26,562\n\n \n\n \n\n9.35%\n\n \n\n$\n\n26,351\n\n \n\n \n\n \n\n9.35\n\n%\n\n \n\n12/1/2028\n\n \n\nInterest only\n\nLoan 22\n\n \n\nLoan origination\n\n \n\nMultifamily\n\n \n\n7/31/2025\n\n \n\n$\n\n112,000\n\n \n\n \n\n$\n\n112,000\n\n \n\n \n\nSOFR + 2.40%\n\n \n\n$\n\n111,127\n\n \n\n \n\n \n\n6.07\n\n%\n\n \n\n8/9/2028\n\n \n\nInterest only\n\nLoan 23\n\n \n\nLoan origination\n\n \n\nOffice\n\n \n\n9/26/2025\n\n \n\n$\n\n110,500\n\n \n\n \n\n$\n\n97,395\n\n \n\n \n\nSOFR + 2.85%\n\n \n\n$\n\n96,476\n\n \n\n \n\n \n\n6.52\n\n%\n\n \n\n10/9/2028\n\n \n\nInterest only\n\nLoan 24\n\n \n\nLoan origination\n\n \n\nOffice\n\n \n\n10/17/2025\n\n \n\n$\n\n74,056\n\n \n\n \n\n$\n\n71,690\n\n \n\n \n\nSOFR + 3.15%\n\n \n\n$\n\n71,163\n\n \n\n \n\n \n\n6.82\n\n%\n\n \n\n11/9/2027\n\n \n\nInterest only\n\nLoan 25\n\n \n\nLoan origination\n\n \n\nOffice\n\n \n\n2/5/2026\n\n \n\n$\n\n177,970\n\n \n\n \n\n$\n\n132,270\n\n \n\n \n\nSOFR + 2.95%\n\n \n\n$\n\n130,621\n\n \n\n \n\n \n\n6.62\n\n%\n\n \n\n2/9/2028\n\n \n\nInterest only\n\nLoan 26\n\n \n\nLoan origination\n\n \n\nHospitality\n\n \n\n3/26/2026\n\n \n\n$\n\n90,000\n\n \n\n \n\n$\n\n90,000\n\n \n\n \n\nSOFR + 3.50%\n\n \n\n$\n\n89,105\n\n \n\n \n\n \n\n7.18\n\n%\n\n \n\n4/9/2029\n\n \n\nInterest only\n\nTotal\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n$\n\n1,403,171\n\n \n\n \n\n$\n\n1,308,591\n\n \n\n \n\n \n\n \n\n$\n\n1,300,208\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(1)\nThe loan receivables held for investment are floating rate and fixed rate loans. The floating rate loans are presented with the contractual rate based on SOFR or the applicable SOFR floor plus the applicable spread as of March 31, 2026.\n\n \n\n15\n\n \n\nThe following table summarizes the Company’s investments in loan receivables held for investment as of December 31, 2025 (in ‘000s):\n\n \n\nInvestment\n\n \n\nInvestment\nType\n\n \n\nLoan\nType\n\n \n\nOrigination\nDate\n\n \n\nTotal\nCommitment\n\n \n\n \n\nLoan\nBalance\n\n \n\n \n\nContractual\nInterest\nRate\n\n \n\nCarrying\nValue at\nDecember 31,\n2025\n\n \n\n \n\nInterest\nrate at\nDecember 31,\n2025(1)\n\n \n\n \n\nMaturity\nDate\n\n \n\nPayment\nTerms\n\nLoan 1\n\n \n\nLoan origination\n\n \n\nMultifamily\n\n \n\n12/17/2021\n\n \n\n$\n\n29,276\n\n \n\n \n\n$\n\n29,276\n\n \n\n \n\nSOFR + 3.06%\n\n \n\n$\n\n29,276\n\n \n\n \n\n \n\n6.84\n\n%\n\n \n\n1/10/2026\n\n \n\nInterest only\n\nLoan 5\n\n \n\nLoan origination\n\n \n\nOffice\n\n \n\n7/14/2022\n\n \n\n \n\n55,935\n\n \n\n \n\n \n\n55,935\n\n \n\n \n\nSOFR + 4.25%\n\n \n\n \n\n55,935\n\n \n\n \n\n \n\n8.07\n\n%\n\n \n\n8/5/2026\n\n \n\nInterest only\n\nLoan 6\n\n \n\nPurchase\n\n \n\nHospitality\n\n \n\n7/7/2022\n\n \n\n \n\n27,748\n\n \n\n \n\n \n\n27,748\n\n \n\n \n\nSOFR + 4.75%\n\n \n\n \n\n27,748\n\n \n\n \n\n \n\n8.52\n\n%\n\n \n\n7/5/2026\n\n \n\nInterest only\n\nLoan 8\n\n \n\nLoan origination\n\n \n\nIndustrial\n\n \n\n3/10/2023\n\n \n\n \n\n35,800\n\n \n\n \n\n \n\n35,558\n\n \n\n \n\nSOFR + 3.50%\n\n \n\n \n\n35,533\n\n \n\n \n\n \n\n7.27\n\n%\n\n \n\n3/10/2026\n\n \n\nInterest only\n\nLoan 9\n\n \n\nPurchase\n\n \n\nStudent Housing\n\n \n\n3/31/2023\n\n \n\n \n\n105,256\n\n \n\n \n\n \n\n105,256\n\n \n\n \n\nSOFR + 2.25%\n\n \n\n \n\n105,256\n\n \n\n \n\n \n\n6.00\n\n%\n\n \n\n8/9/2026\n\n \n\nInterest only\n\nLoan 12\n\n \n\nLoan origination\n\n \n\nHospitality\n\n \n\n5/7/2024\n\n \n\n \n\n30,000\n\n \n\n \n\n \n\n30,000\n\n \n\n \n\nSOFR + 4.00%\n\n \n\n \n\n29,854\n\n \n\n \n\n \n\n7.77\n\n%\n\n \n\n5/10/2027\n\n \n\nInterest only\n\nLoan 14\n\n \n\nLoan origination\n\n \n\nMultifamily\n\n \n\n6/11/2024\n\n \n\n \n\n100,000\n\n \n\n \n\n \n\n100,000\n\n \n\n \n\nSOFR + 3.75%\n\n \n\n \n\n99,502\n\n \n\n \n\n \n\n7.52\n\n%\n\n \n\n7/10/2027\n\n \n\nInterest only\n\nLoan 15\n\n \n\nLoan origination\n\n \n\nOffice\n\n \n\n12/17/2024\n\n \n\n \n\n58,773\n\n \n\n \n\n \n\n58,721\n\n \n\n \n\nSOFR + 4.50%\n\n \n\n \n\n58,408\n\n \n\n \n\n \n\n8.28\n\n%\n\n \n\n1/9/2027\n\n \n\nInterest only\n\nLoan 16\n\n \n\nLoan origination\n\n \n\nMultifamily\n\n \n\n2/11/2025\n\n \n\n \n\n65,155\n\n \n\n \n\n \n\n62,501\n\n \n\n \n\nSOFR + 2.35%\n\n \n\n \n\n62,092\n\n \n\n \n\n \n\n6.13\n\n%\n\n \n\n3/9/2027\n\n \n\nInterest only\n\nLoan 17\n\n \n\nLoan origination\n\n \n\nMultifamily\n\n \n\n2/11/2025\n\n \n\n \n\n79,650\n\n \n\n \n\n \n\n68,908\n\n \n\n \n\nSOFR + 2.45%\n\n \n\n \n\n68,408\n\n \n\n \n\n \n\n6.23\n\n%\n\n \n\n3/9/2027\n\n \n\nInterest only\n\nLoan 18\n\n \n\nLoan origination\n\n \n\nMultifamily\n\n \n\n3/26/2025\n\n \n\n \n\n81,900\n\n \n\n \n\n \n\n77,508\n\n \n\n \n\nSOFR + 2.35%\n\n \n\n \n\n76,873\n\n \n\n \n\n \n\n6.13\n\n%\n\n \n\n4/9/2028\n\n \n\nInterest only\n\nLoan 19\n\n \n\nLoan origination\n\n \n\nOffice\n\n \n\n6/5/2025\n\n \n\n \n\n49,300\n\n \n\n \n\n \n\n35,167\n\n \n\n \n\nSOFR + 4.15%\n\n \n\n \n\n34,768\n\n \n\n \n\n \n\n7.93\n\n%\n\n \n\n6/9/2028\n\n \n\nInterest only\n\nLoan 20\n\n \n\nLoan origination\n\n \n\nIndustrial\n\n \n\n6/30/2025\n\n \n\n \n\n123,000\n\n \n\n \n\n \n\n120,000\n\n \n\n \n\nSOFR + 2.10%\n\n \n\n \n\n119,060\n\n \n\n \n\n \n\n5.88\n\n%\n\n \n\n7/9/2027\n\n \n\nInterest only\n\nLoan 21\n\n \n\nLoan origination\n\n \n\nHospitality\n\n \n\n7/21/2025\n\n \n\n \n\n26,562\n\n \n\n \n\n \n\n26,562\n\n \n\n \n\n9.35%\n\n \n\n \n\n26,332\n\n \n\n \n\n \n\n9.35\n\n%\n\n \n\n12/1/2028\n\n \n\nInterest only\n\nLoan 22\n\n \n\nLoan origination\n\n \n\nMultifamily\n\n \n\n7/31/2025\n\n \n\n \n\n112,000\n\n \n\n \n\n \n\n112,000\n\n \n\n \n\nSOFR + 2.40%\n\n \n\n \n\n111,036\n\n \n\n \n\n \n\n6.18\n\n%\n\n \n\n8/9/2028\n\n \n\nInterest only\n\nLoan 23\n\n \n\nLoan origination\n\n \n\nOffice\n\n \n\n9/26/2025\n\n \n\n \n\n110,500\n\n \n\n \n\n \n\n97,395\n\n \n\n \n\nSOFR + 2.85%\n\n \n\n \n\n96,387\n\n \n\n \n\n \n\n6.63\n\n%\n\n \n\n10/9/2028\n\n \n\nInterest only\n\nLoan 24\n\n \n\nLoan origination\n\n \n\nOffice\n\n \n\n10/17/2025\n\n \n\n \n\n74,056\n\n \n\n \n\n \n\n71,690\n\n \n\n \n\nSOFR + 3.15%\n\n \n\n \n\n71,087\n\n \n\n \n\n \n\n6.93\n\n%\n\n \n\n11/9/2027\n\n \n\nInterest only\n\nTotal\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n$\n\n1,164,911\n\n \n\n \n\n$\n\n1,114,225\n\n \n\n \n\n \n\n \n\n$\n\n1,107,555\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(1)\nThe loan receivables held for investment are floating rate and fixed rate loans. The floating rate loans are presented with the contractual rate based on SOFR or the applicable SOFR floor plus the applicable spread as of December 31, 2025.\n\n5.\nCommercial Debt Securities\n\nAs of March 31, 2026 and December 31, 2025 the Company has Commercial Debt Securities with carrying amounts of $17.7 million and $7.7 million, respectively. As of March 31, 2026 the cost related to the Commercial Debt Securities is $17.7 million and the unrealized loss is $24 thousand. The weighted average life of the securities as of March 31, 2026 is 3.43 years. The weighted average interest rate of the securities is 7.06% as of March 31, 2026 (in ‘000s).\n\n \n\nYear ending December 31,\n\n \n\nInvestment\nby Maturity\n\n \n\n2026\n\n \n\n-\n\n \n\n2027\n\n \n\n \n\n7,672\n\n \n\n2028\n\n \n\n-\n\n \n\n2029\n\n \n\n-\n\n \n\n2030\n\n \n\n-\n\n \n\n2031\n\n \n\n \n\n10,020\n\n \n\nTotal\n\n \n\n$\n\n17,692\n\n \n\n \n\n16\n\n \n\n6. Equity Method Investments\n\nAs of March 31, 2026, the Company held 7.12% , 6.98% and 6.33% interests in AB Commercial Real Estate Debt Fund, SICAV-SIF (“AB CRED II”), AB Commercial Real Estate Debt Fund III, SICAV-SIF S.C.Sp. (“AB CRED III”) and Horton Plaza JV LLC (\"Horton Plaza\"), respectively, entities managed by affiliates of the Investment Manager, and unconsolidated joint ventures for which the Company is not the primary beneficiary, at their carrying values of $3.3 million, $21.3 million and $19.1 million, respectively. As of December 31, 2025, the carrying value was $3.4 million, $23.0 million and $19.2 million, respectively. The Company reported its share of the net asset value of AB CRED II, AB CRED III and Horton Plaza in its Consolidated Balance Sheets, presented as “Equity method investments”. The reporting period of the investments’ financial statements lags the Company’s financial reporting period, but such lag is never more than three months.\n\nAt acquisition of the equity investments in AB CRED II and AB CRED III, the Company allocated the basis difference to the mortgage loans held by the entities; the basis difference is amortized over the estimated life of the investments or recognized when a loan is repaid. There were no basis differences of the Company’s equity investments during the three months ended March 31, 2026 and March 31, 2025. As of March 31, 2026 and March 31, 2025, no unamortized basis difference remains on the equity method investments.\n\nDuring the three months ended March 31, 2026 and March 31, 2025 the Company did not record impairment of the equity method investments.\n\nUnconsolidated VIEs\n\nIn the third quarter of 2025, the Company received a 6.33% interest, in one VIE through foreclosure of a mixed use property underlying a delinquent commercial mortgage loan. The entity was determined to be a VIE but the Company was not determined to be the primary beneficiary; as a result, the investment in the entity is considered an equity method investment.\n\nThe Company does not consolidate variable interests held in an acquired joint venture investment accounted for as an equity method investment as the Company does not have the power to direct the activities that most significantly impact their economic performance and therefore, the Company only accounts for its specific interest in them.\n\nThe table below reflects variable interests in identified VIEs for which the Company is not the primary beneficiary (in ‘000s):\n\n \n\n \n\n \n\nCarrying Value\n\n \n\n \n\nMaximum Exposure to Loss\n\n \n\n \n\n \n\nMarch 31, 2026\n\n \n\n \n\nDecember 31, 2025\n\n \n\n \n\nMarch 31, 2026\n\n \n\n \n\nDecember 31, 2025\n\n \n\nUnconsolidated JV Equity\n\n \n\n$\n\n43,704\n\n \n\n \n\n$\n\n45,486\n\n \n\n \n\n$\n\n43,704\n\n \n\n \n\n$\n\n45,486\n\n \n\nTotal assets in unconsolidated VIEs\n\n \n\n$\n\n43,704\n\n \n\n \n\n$\n\n45,486\n\n \n\n \n\n$\n\n43,704\n\n \n\n \n\n$\n\n45,486\n\n \n\n \n\n7. Fair Value of Financial Instruments\n\nFair value is based upon internal models, using market quotations, broker quotations, counterparty quotations or pricing services quotations, which provide valuation estimates based upon reasonable market order indications and are subject to significant variability based on market conditions, such as interest rates, credit spreads and market liquidity.\n\nThe following table presents the carrying value and fair value of the Company’s financial instruments disclosed, but not carried, at fair value as of March 31, 2026, and the level of each financial instrument within the fair value hierarchy (in ‘000s):\n\n \n\n \n\nCarrying\nValue\n\n \n\n \n\nLevel 1\n\n \n\n \n\nLevel 2\n\n \n\n \n\nLevel 3\n\n \n\n \n\nTotal\n\n \n\nAssets\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nLoan receivables held for investment\n\n \n\n$\n\n1,300,208\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n1,306,813\n\n \n\n \n\n$\n\n1,306,813\n\n \n\nTotal Assets\n\n \n\n$\n\n1,300,208\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n1,306,813\n\n \n\n \n\n$\n\n1,306,813\n\n \n\nLiabilities\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCredit facility\n\n \n\n$\n\n90,000\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n90,000\n\n \n\n \n\n$\n\n90,000\n\n \n\nMorgan Stanley repurchase agreement\n\n \n\n \n\n421,763\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n420,845\n\n \n\n \n\n \n\n420,845\n\n \n\nCitibank repurchase agreement\n\n \n\n \n\n208,776\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n208,776\n\n \n\n \n\n \n\n208,776\n\n \n\nNote payable\n\n \n\n \n\n79,995\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n79,902\n\n \n\n \n\n \n\n79,902\n\n \n\nHSBC Loan\n\n \n\n \n\n143,767\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n143,825\n\n \n\n \n\n \n\n143,825\n\n \n\nTotal Liabilities\n\n \n\n$\n\n944,301\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n943,348\n\n \n\n \n\n$\n\n943,348\n\n \n\n \n\n17\n\n \n\n \n\nCommercial debt securities are measured at fair value. The following table presents the carrying value and fair value of the Company’s commercial debt securities as of March 31, 2026, and the level within the fair value hierarchy (in ‘000s):\n\n \n\n \n\nCarrying\nValue\n\n \n\n \n\nLevel 1\n\n \n\n \n\nLevel 2\n\n \n\n \n\nLevel 3\n\n \n\n \n\nTotal\n\n \n\nCommercial debt securities\n\n \n\n$\n\n17,692\n\n \n\n \n\n \n\n \n\n \n\n$\n\n17,692\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n17,692\n\n \n\nTotal\n\n \n\n$\n\n17,692\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n17,692\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n17,692\n\n \n\n \n\nThe discounted cash flow method was used in calculating the fair values of the Company’s loan receivables held for investment. The significant unobservable inputs as of March 31, 2026, are the discount margins and range from 2.05% to 9.13%.\n\nThe discounted cash flow method was used in calculating the fair values of the Company’s liabilities as of March 31, 2026. The significant unobservable inputs as of March 31, 2026, are the discount margins and range from 1.35% to 2.25%.\n\nThe following table presents the carrying value and fair value of the Company’s financial instruments as of December 31, 2025, and the level of each financial instrument within the fair value hierarchy (in ‘000s):\n\n \n\n \n\nCarrying\nValue\n\n \n\n \n\nLevel 1\n\n \n\n \n\nLevel 2\n\n \n\n \n\nLevel 3\n\n \n\n \n\nTotal\n\n \n\nAssets\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nLoan receivables held for investment\n\n \n\n$\n\n1,107,555\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n1,112,840\n\n \n\n \n\n$\n\n1,112,840\n\n \n\nTotal Assets\n\n \n\n$\n\n1,107,555\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n1,112,840\n\n \n\n \n\n$\n\n1,112,840\n\n \n\nLiabilities\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCredit facility\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\nMorgan Stanley repurchase agreement\n\n \n\n$\n\n445,327\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n444,004\n\n \n\n \n\n$\n\n444,004\n\n \n\nCitibank repurchase agreement\n\n \n\n \n\n102,960\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n102,960\n\n \n\n \n\n \n\n102,960\n\n \n\nNote payable\n\n \n\n \n\n79,995\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n79,790\n\n \n\n \n\n \n\n79,790\n\n \n\nHSBC Loan\n\n \n\n \n\n143,768\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n143,768\n\n \n\n \n\n \n\n143,768\n\n \n\nTotal Liabilities\n\n \n\n$\n\n772,050\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n770,522\n\n \n\n \n\n$\n\n770,522\n\n \n\n \n\nCommercial debt securities are measured at fair value. The following table presents the carrying value and fair value of the Company’s commercial debt securities as of December 31, 2025, and the level within the fair value hierarchy (in ‘000s):\n\n \n\n \n\nCarrying\nValue\n\n \n\n \n\nLevel 1\n\n \n\n \n\nLevel 2\n\n \n\n \n\nLevel 3\n\n \n\n \n\nTotal\n\n \n\nCommercial debt securities\n\n \n\n$\n\n7,716\n\n \n\n \n\n \n\n \n\n \n\n$\n\n7,716\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n7,716\n\n \n\nTotal\n\n \n\n$\n\n7,716\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n7,716\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n7,716\n\n \n\n \n\n \n\nThe discounted cash flow method was used in calculating the fair values of the Company’s loan receivables held for investment. The significant unobservable inputs as of December 31, 2025, are the discount margins and range from 2.10% to 9.04%.\n\nThe discounted cash flow method was used in calculating the fair values of the Company’s liabilities as of December 31, 2025. The significant unobservable inputs as of December 31, 2025, are the discount margins and range from 1.45% to 2.25%.\n\n18\n\n \n\n8. Debt Obligations\n\nSummarized Debt Obligations\n\nThe following table summarizes the Company’s debt obligations and the loan receivable balances designated pledged as collateral (in '000s):\n\nDebt Obligation\n\n \n\nOutstanding\nBalance as of\nMarch 31, 2026\n\n \n\n \n\nOutstanding\nBalance as of\nDecember 31,\n2025\n\n \n\n \n\nInterest Rate at\nMarch 31, 2026 (1)\n\n \n\n \n\nValue of\nUnderlying\nCollateral as of\nMarch 31, 2026\n\n \n\n \n\nCredit facility\n\n \n\n$\n\n90,000\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n \n\n5.93\n\n%\n\n \n\nN/A\n\n \n\n(2)\n\nMorgan Stanley repurchase agreement\n\n \n\n \n\n421,763\n\n \n\n \n\n \n\n445,327\n\n \n\n \n\n \n\n5.69\n\n%\n\n \n\n \n\n565,010\n\n \n\n \n\nCitibank repurchase agreement\n\n \n\n \n\n208,776\n\n \n\n \n\n \n\n102,960\n\n \n\n \n\n \n\n5.32\n\n%\n\n \n\n \n\n264,534\n\n \n\n \n\nNote payable\n\n \n\n \n\n79,995\n\n \n\n \n\n \n\n79,995\n\n \n\n \n\n \n\n4.87\n\n%\n\n \n\n \n\n105,256\n\n \n\n \n\nHSBC Loan\n\n \n\n \n\n143,767\n\n \n\n \n\n \n\n143,768\n\n \n\n \n\n \n\n5.28\n\n%\n\n \n\n \n\n192,061\n\n \n\n \n\nTotal\n\n \n\n$\n\n944,301\n\n \n\n \n\n$\n\n772,050\n\n \n\n \n\n \n\n \n\n \n\n$\n\n1,126,861\n\n \n\n \n\n \n\n(1)\nThe above rates are the weighted average interest rates of floating rate loans and are presented using SOFR or the Prime Rate or the applicable SOFR or Prime Rate floor plus the applicable spread as of March 31, 2026.\n\n(2)\nThe Credit Facility is secured by all collateral of the Company, which is defined as the unfunded commitments of the investors. See Credit Facility note below for further details.\n\nCredit Facility\n\nOn December 14, 2021, the Company entered into a credit agreement (the “State Street Credit Agreement”) to establish a revolving credit facility (the “State Street Credit Facility”) with State Street Bank and Trust Company (“State Street”) as administrative bank (the “Administrative Bank”) and as a lender, and any other lender that becomes a party to the State Street Credit Agreement in accordance with the terms of the State Street Credit Agreement, as lenders (each, a “Lender” and collectively, the “Lenders”).\n\nThe maximum principal amount (the “Maximum Commitment”) of the State Street Credit Facility was initially $65 million. The Maximum Commitment amount may be increased from time to time upon request of the Company to an amount not exceeding $140 million, subject to certain terms and conditions as described in the State Street Credit Agreement.\n\nAs of March 31, 2026 and 2025, borrowings under the State Street Credit Facility bear interest, at the Company’s election at the time of drawdown, at a rate per annum equal to (i) with respect to SOFR Rate Loans, Adjusted SOFR (plus the applicable spread) for the applicable Interest Period; and (ii) with respect to reference rate loans, the Prime rate in effect from day to day plus the applicable spread.\n\nOn December 12, 2023, the Company entered into an amendment (the “Second Amendment”) to the State Street Credit Agreement. The Second Amendment, among other changes, (i) extended the maturity date of the State Street Credit Facility from December 12, 2023 to December 10, 2024 and (ii) increased the Borrowing Base from 60 percent of the aggregate Unfunded Capital Commitments to 70 percent of the aggregate Unfunded Capital Commitments.\n\nOn December 10, 2024, the Company entered into an amendment (the “Third Amendment”) to the State Street Credit Agreement. The Third Amendment, among other changes, (i) extended the maturity date of the State Street Credit Facility from December 10, 2024 to December 10, 2026 and (ii) provided for a mechanism to temporarily increase the Maximum Commitment to $250 million until April 30, 2025, after which date the Maximum Commitment will be reduced to $140 million.\n\nAs of March 31, 2026, the Company had $90 million outstanding on the State Street Credit Facility and the Company was in compliance with the terms of the State Street Credit Agreement. The Company intends to continue to utilize the State Street Credit Facility on a revolving basis to fund investments and for other general corporate purposes.\n\nSubject to certain terms and conditions, the State Street Credit Facility is secured by perfected first priority security interests in and Liens on all of the collateral (i) of the Company (the “Initial Borrower”) in favor of the Administrative Bank for the benefit of the Administrative Bank, the Lenders and each Indemnitee (collectively the “Secured Parties”), subject to no other Liens (other than Permitted Liens), (ii) of any Blocker and its Blocker Managing Member, subject to no other Liens (other than Permitted Liens), and (iii) of any Feeder Fund and its Feeder Fund General Partner, subject to no other Liens (other than Permitted Liens), except as enforceability may be limited by Debtor Relief Laws and general equitable principles.\n\n19\n\n \n\nMorgan Stanley Repurchase Agreement\n\nOn April 27, 2022, AB CRE PDF Member I LLC (\"PDF Member I\") entered into a $150 million master repurchase and securities contract agreement (the “Morgan Stanley Repurchase Agreement”), with an option to increase the maximum facility amount (the “Maximum Facility Amount”) to $250 million, with Morgan Stanley Mortgage Capital Holdings LLC (“Morgan Stanley”), as administrative agent for Morgan Stanley Bank, N.A. Pursuant to the Morgan Stanley Repurchase Agreement, PDF Member I is permitted to sell, and later repurchase, eligible commercial mortgage loans collateralized by multifamily, office, retail, industrial, hospitality, self-storage or mixed-use properties or such other property types acceptable to Morgan Stanley. The initial expiration date of the Morgan Stanley Repurchase Agreement was April 27, 2025.\n\nOn July 21, 2022, the Company entered into an omnibus amendment (the “First Morgan Stanley Repurchase Agreement Amendment”) to the Morgan Stanley Repurchase Agreement. The First Morgan Stanley Repurchase Agreement Amendment increased the Maximum Facility Amount to $200 million.\n\nOn April 26, 2024, the Company entered into an amendment (the “Second Morgan Stanley Repurchase Agreement Amendment”) to the Morgan Stanley Repurchase Agreement. The Second Morgan Stanley Repurchase Agreement Amendment (i) increased the Maximum Facility Amount to $400 million and (ii) extended the maturity date of the Morgan Stanley Repurchase Agreement to April 27, 2026.\n\nOn April 9, 2025, the Company entered into an amendment (the \"Third Morgan Stanley Repurchase Agreement Amendment\") to the Morgan Stanley Repurchase Agreement. The Third Morgan Stanley Repurchase Agreement Amendment increased the Maximum Facility Amount from $300,000,000 to $350,000,000.\n\nOn July 28, 2025, the Company entered into an amendment (the \"Fourth Morgan Stanley Repurchase Agreement Amendment\") to the Morgan Stanley Repurchase Agreement. The Fourth Morgan Stanley Repurchase Agreement Amendment increased the Maximum Facility Amount from $350,000,000 to $400,000,000.\n\nOn September 17, 2025, the Company entered into an amendment (the \"Fifth Morgan Stanley Repurchase Agreement Amendment\") to the Morgan Stanley Repurchase Agreement. The Fifth Morgan Stanley Repurchase Agreement Amendment increased the Maximum Facility Amount from $400,000,000 to $500,000,000, with an option to increase the Maximum Facility Amount to $550,000,000. The expiration date of the Morgan Stanley Repurchase Agreement was extended to April 27, 2027.\n\nUnder the Morgan Stanley Repurchase Agreement, the proceeds received by PDF Member I for each Purchased Asset is equal to the product of (a) the outstanding principal balance of such Purchased Asset, multiplied by (b) the applicable Purchase Percentage. Upon repurchase of the Purchased Asset by PDF Member I, the Repurchase Price for such Purchased Asset shall equal the sum of the Purchase Price of such Purchased Asset and the accrued and unpaid Price Differential with respect to such Purchased Asset as of the date of such determination, minus all Income and other cash actually received by Buyers in respect of such Purchased Asset and applied towards the Repurchase Price and/or Price Differential pursuant to the Morgan Stanley Repurchase Agreement. For borrowings under the Morgan Stanley Repurchase Agreement the advance rate and spread are determined based on the individual loan.\n\nIn connection with the Morgan Stanley Repurchase Agreement, the Company has agreed to guarantee certain obligations of PDF Member I under the Morgan Stanley Repurchase Agreement.\n\nNote Payable\n\nOn March 31, 2023, AB CRE PDF Athena LLC, a wholly owned subsidiary of the Company, entered into a note-on-note financing (the “Note”) with Citibank, N.A. (“Citibank”). The Note has a maximum commitment of $125.6 million and is scheduled to mature within one hundred fifty (150) days after the maturity date of the underlying collateral of August 9, 2026, or as otherwise provided in the Loan and Security Agreement, by and among AB CRE PDF Athena LLC, as borrower, Citibank, as Class A Lender and the Company, as Subordinated Lender (the “Loan and Security Agreement”). The maturity of the Note was automatically extended to January 6, 2027 in accordance with the Loan and Security Agreement based on the loan extension of underlying Loan 9. Except as otherwise provided in the Loan and Security Agreement, borrowings under the Note bear interest at Term SOFR plus 1.20%. The Note is collateralized by Loan 9, see footnote 4.\n\nCitibank Repurchase Agreement\n\nOn April 1, 2025, AB CRE PDF Lending C LLC (“PDF Lending C”), a wholly-owned subsidiary of the Company, entered into a $250,000,000 master repurchase agreement and securities contract (the “Citibank Repurchase Agreement”), with Citibank, with an option, at Citibank’s discretion, to increase the maximum facility amount to $500,000,000. Pursuant to the Citibank Repurchase Agreement, PDF Lending C is permitted to sell, and later repurchase, eligible commercial mortgage loans collateralized by multi-family hospitality, office, retail, industrial or self-storage properties or such other property types acceptable to Citibank. The expiration date for adding new loans to the facility is April 1, 2027, unless extended or earlier\n\n20\n\n \n\nterminated in accordance with the terms of the Citibank Repurchase Agreement. Any capitalized terms used herein and not defined herein shall have the meanings ascribed to them in the Citibank Repurchase Agreement.\n\nOn February 26, 2026, AB CRE PDF Lending C LLC (“PDF”), a wholly-owned subsidiary of AB Commercial Real Estate Private Debt Fund, LLC (the “Company”), entered into an amendment (the “Amendment”) to the fee letter (as amended, the “Fee Letter”), by and between PDF, as the seller, the Company, as the guarantor, and Citibank, N.A., as the buyer. The Amendment increased the master repurchase facility amount from $250,000,000 to $258,220,000.\n\nUnder the Citibank Repurchase Agreement, the purchase price paid by PDF Lending C for each Purchased Asset is equal to the product of (a) the lesser of (i) the unpaid principal balance of such Purchased Asset and (ii) the Market Value of such Purchased Asset, multiplied by (b) the applicable Purchase Price Percentage for such Purchased Asset. Upon repurchase of the Purchased Asset by PDF Lending C, the Repurchase Price for such Purchased Asset shall equal the sum of (i) the outstanding Purchase Price for such Purchased Asset, plus (ii) the accrued and unpaid Purchase Price Differential with respect to such Purchased Asset, plus (iii) all accrued and unpaid costs and expenses of Citibank relating to such Purchased Asset, plus (iv) any other amounts then due and owing by PDF Lending C to Citibank and its Affiliates pursuant to the terms of the Transaction Documents. In connection with the Citibank Repurchase Agreement, the Company has agreed to guarantee certain obligations of PDF Lending C under the Citibank Repurchase Agreement.\n\nHSBC Loan\n\nOn December 7, 2023, AB CRE PDF TNVA1 LLC (“TNVA1”), a wholly owned subsidiary of the Company entered into a Loan and Security Agreement (the “HSBC Loan and Security Agreement”) by and among TNVA1, as borrower, HSBC Bank USA, National Association (“HSBC”), as administrative agent for itself and the other lenders signatory thereto, and the lenders signatory thereto (the “HSBC Lenders”) as part of a “note-on-note” loan (the “HSBC TNVA1 Loan”) transaction.\n\nThe HSBC Lenders have made the HSBC TNVA1 Loan in the aggregate principal amount of $86.1 million, which is included in Notes Payable in the accompanying consolidated balance sheet. The HSBC TNVA1 Loan generally bears interest at a rate per annum equal to the greater of (i) Term SOFR plus a margin of 1.61%, with a 0.0% floor on Term SOFR and (ii) 5.25%. The HSBC TNVA1 Loan is secured by a first priority security interest in certain collaterally assigned loans.\n\nIn connection with the HSBC TNVA1 Loan, the Company undertook obligations to guaranty the payment of the HSBC TNVA1 Loan in an amount equal to the lesser of (i) 35% of the outstanding principal balance of the HSBC TNVA1 Loan and (ii) $52.8 million.\n\nThe HSBC Loan and Security Agreement includes customary covenants, reporting requirements, and other customary requirements applicable to the Company and TNVA1 and provides for events of default and acceleration provisions customary for a loan of its type.\n\nThe HSBC TNVA1 Loan has an initial maturity date of December 7, 2026, unless the HSBC Loan and Security Agreement is either extended or sooner terminated in accordance with its terms.\n\nOn August 26, 2025, TNVA1 entered into an amendment (the “First Amendment”) to the HSBC Loan and Security Agreement. The First Amendment, among other changes, (i) extends the initial maturity date of borrowings under the HSBC Loan and Security Agreement to July 9, 2027 and (ii) provides for an additional loan under the HSBC Loan and Security Agreement of $92,250,000 (the “Additional Loan”), increasing the aggregate total borrowings under the HSBC Loan and Security Agreement to $187,150,000. The Additional Loan bears interest at Term SOFR plus a margin of 1.50%, and it is secured by a first priority security interest in a mortgage loan of the Fund that was collaterally assigned to the Lenders in connection with the Amendment. The Amendment also introduced new customary covenants and events of default with respect to the Additional Loan. In connection with the Amendment, the Fund reinstated and modified its obligations to guarantee the payment of the HSBC TNVA1 Loan in an amount equal to the lesser of (i) 25% of the outstanding principal balance of the HSBC TNVA1 Loan and (ii) $46,787,500.00.\n\nOn December 1, 2025, TNVA1 entered into an amendment (the “Second Amendment”) to the HSBC Loan and Security Agreement. The Second Amendment, among other changes, (i) extends the initial maturity date of borrowings under the HSBC Loan and Security Agreement to November 9, 2027 and (ii) provides for an additional loan under the HSBC Loan and Security Agreement of $55,462,500.00 (the “Additional Loan”), increasing the aggregate total borrowings under the HSBC Loan and Security Agreement to $147,712,500.00 (the “HSBC TNVA1 Loan”). The Additional Loan bears interest at Term SOFR plus a margin of 1.80%, and it is secured by a first priority security interest in a mortgage loan of the Fund that was collaterally assigned to the Lenders in connection with the Amendment. The Amendment also introduced new customary covenants and events of default with respect to the Additional Loan. In connection with the Amendment, the Fund reinstated and modified its obligations to guarantee the payment of the HSBC TNVA1 Loan in an amount equal to the lesser of (i) 25% of the outstanding principal balance of the HSBC TNVA1 Loan and (ii) $36,928,125.00.\n\n21\n\n \n\nAs of March 31, 2026, the Fund had $143,767,500 outstanding on the HSBC Loan.\n\nCombined Maturity of Debt Obligations\n\nThe following schedule reflects the Company’s contractual payments under all borrowings by maturity (in ‘000s):\n\nYear ending December 31,\n\n \n\nBorrowing\nby Maturity\n\n \n\n2026\n\n \n\n$\n\n90,000\n\n \n\n2027\n\n \n\n \n\n645,525\n\n \n\n2028\n\n \n\n \n\n208,776\n\n \n\n2029\n\n \n\n \n\n—\n\n \n\n2030\n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n \n\nTotal\n\n \n\n$\n\n944,301\n\n \n\n \n\n9. Related Party Transactions\n\nManagement Fee\n\nThe Company has entered into an investment management agreement, as amended and restated on June 20, 2022, (as amended, the “Management Agreement”) with the Investment Manager. Pursuant to the Management Agreement the Company will pay the Investment Manager, on a quarterly basis, a management fee (the “Management Fee”) in respect of each Member, in arrears, equal to the Applicable Percentage (as defined below) of such Member multiplied by the sum of (i) the net asset value (“NAV”) of the Units and (ii) the product of (a) all unfunded commitment amounts under any investments (“Portfolio Investments”) with ongoing funding obligations (e.g., delayed-draw term loans) and (b) the Indebtedness Fraction (as defined below), each of (i) and (ii) as of the last day of each calendar quarter. The Management Fee shall not be charged with respect to any portion of the Company’s assets that are attributable to direct leverage. The “Indebtedness Fraction” means an amount equal to one minus a fraction, the numerator of which is the total outstanding portfolio level indebtedness of the Company, and the denominator of which is the principal amount of any Portfolio Investments held by the Company. The portfolio indebtedness used to calculate the ratio includes the debt obligations noted in the accompanying balance sheet. The Investment Management Agreement clarifies that loan servicing fees and expenses, and other fees and expenses incurred in connection with the acquisition, disposition, ownership and operation of the Portfolio Investments (as defined therein) are not to be included as Company Expenses (as defined therein) for purposes of calculating the Organizational Expenses and Company Expenses limit.\n\nA Member’s “Applicable Percentage” is set forth below:\n\n \n\nAggregate Capital Commitment of a Member\n\n \n\nApplicable Percentage\n\n \n\n$50,000 - $500,000\n\n \n\n \n\n1.50\n\n%\n\n$500,001 - $1,000,000\n\n \n\n \n\n1.40\n\n%\n\n$1,000,001 - $3,000,000\n\n \n\n \n\n1.30\n\n%\n\n$3,000,001 - $5,000,000\n\n \n\n \n\n1.15\n\n%\n\n$5,000,001 and over\n\n \n\n \n\n1.00\n\n%\n\n \n\nNotwithstanding the foregoing, with respect to any Member that makes a capital commitment (“Capital Commitment”) on the date of the Initial Closing (each, a “Founding Member”), the Management Fee shall be waived with respect to such Founding Member (including any additional Capital Commitments made by such Member) until the six-month anniversary of the date of the Initial Closing.\n\nPayment of the Management Fee will be made within ten (10) days of the last day of each calendar quarter, or as soon as reasonably practicable thereafter.\n\nThe Management Fee charged with respect to a Member will be prorated for any capital contribution or repurchase of Units, as defined by the Management Agreement, that is effective other than as of the first day of a calendar quarter.\n\nThe Investment Manager may, in its discretion, reduce, waive or calculate differently the Management Fee charged at the Company level with regard to the Units held by certain Members, including, without limitation, a related party investor (“Related Investor”), so long as such reduction, waiver or calculation does not result in a preferential dividend under Section 562(c) of the Code.\n\n22\n\n \n\nFor the three months ended March 31, 2026 and 2025, the Company incurred Management Fees of $1.4 million and $1.2 million, respectively, of which the Investment Manager waived $0.0 million and $0.0 million, respectively. As of March 31, 2026 and December 31, 2025 the Management Fees payable amounted to $4.2 million and $2.8 million, respectively and is included in the consolidated balance sheets in the accompanying financial statements.\n\nOther Related Party Transactions\n\nAs disclosed in Note 6, the Company holds interests in AB CRED II, AB CRED III and Horton Plaza, affiliated entities of the Company and unconsolidated joint ventures.\n\nDuring the year ended December 31, 2022, the Company purchased Loan 6 and Loan 7 from a related party. Loan 6 remains outstanding as of March 31, 2026. Loan 7 was foreclosed during the year ended December 31, 2025, at which point the Company obtained an equity ownership interest in the underlying asset and began accounting for the investment under the equity method.\n\nIncentive Fee\n\nPursuant to the Management Agreement at the end of each calendar quarter, the Investment Manager is entitled to receive an incentive fee (the “Incentive Fee”) equal to the difference between (x) the product of (A) 15% and (B) the difference between (1) Core Earnings (as defined below) of the Company for the most recent 12 month period (or such lesser number of completed calendar quarters, if applicable), and (2) the product of (I) the weighted average of the Company’s NAV of the three previous calendar quarters (or such lesser number of completed calendar quarters, if applicable) and the Company’s NAV as of the beginning of the then current calendar quarter, and (II) 6% per annum, and (y) the sum of the Incentive Fee previously paid to the Investment Manager with respect to the first three calendar quarters of the most recent 12 month period (or such lesser number of completed calendar quarters, if applicable); provided, that no Incentive Fee is payable to the Investment Manager with respect to any calendar quarter unless the Core Earnings for the twelve (12) most recently completed calendar quarters or such lesser number of completed calendar quarters following the date of the Initial Closing Date is greater than zero. The Incentive Fee is prorated for partial periods, to the extent necessary, based on the number of days elapsed or remaining in such periods as the case may be. Unless otherwise determined by the Investment Manager, the Company’s NAV at the beginning of a calendar quarter for purposes of this Incentive Fee calculation shall be equal to the Company’s NAV as of the end of the previous calendar quarter as increased by capital contributions and decreased by repurchases.\n\nFor purposes of the foregoing, “Core Earnings” means the net income (loss) attributable to the holders of Units, computed in accordance with GAAP, including realized gains and losses not otherwise included in net income (loss), and excluding (i) the Incentive Fee, (ii) depreciation and amortization, (iii) any unrealized gains or losses or other similar non-cash items that are included in net income for the Applicable Period (as defined below), regardless of whether such items are included in other comprehensive income or loss or in net income and (iv) one-time events pursuant to changes in GAAP and certain material non-cash income or expense items, in each case after discussions between the Investment Manager and the Board and approved by a majority of the Board. “Applicable Period” means the calendar quarter (or part thereof) for which the calculation of the Incentive Fee is being made.\n\nThe Investment Manager is entitled to receive an Incentive Fee with respect to any Units that are repurchased at the end of any calendar quarter (in connection with repurchases of such Units pursuant to the Unit repurchase plan) in an amount calculated as described above with the relevant period being the portion of the calendar quarter for which such Unit was outstanding, and proceeds for any such Unit repurchase will be reduced by the amount of any such Incentive Fee.\n\nIn the sole discretion of the Company, the Incentive Fee may be waived, reduced or calculated differently with respect to the Units held by certain Members, including, without limitation, a Related Investor, so long as such waiver, reduction or calculation does not result in a preferential dividend under Section 562(c) of the Code.\n\nDue to the fact that the Incentive Fee is calculated at the Company level in the aggregate and not charged separately with respect to each Member, it is possible that the Company may be charged the Incentive Fee despite the Member’s particular investment in the Company having a negative performance during a calendar quarter.\n\nFor the three months ended March 31, 2026 and 2025, the Company incurred Incentive Fees of $0.1 million and $0.2 million, respectively of which the Investment Manager waived $1.8 thousand and $0, respectively. As of March 31, 2026 and December 31, 2025 the Incentive Fees payable amounted to $0.2 million and $0.1 million, respectively and are included in the consolidated balance sheets in the accompanying financial statements.\n\n23\n\n \n\nExpense Reimbursement\n\nUnder the Management Agreement and the Company’s Second Amended and Restated Limited Liability Company Operating Agreement (the “Second A&R LLCA”), the Company is required to reimburse the Investment Manager for documented costs and expenses incurred by it on behalf of the Company, except those specifically required to be borne by the Investment Manager under the Management Agreement and the Second A&R LLCA. The Investment Manager is responsible for, and the Company does not reimburse the Investment Manager for, the expenses related to investment personnel of the Investment Manager who provide services to the Company. However, the Company does reimburse the Investment Manager for the Company’s allocable share of compensation paid to certain of the Investment Manager’s non-investment personnel, which compensation is allocated among the Company and other applicable clients of the Investment Manager on a basis that the Investment Manager believes in good faith to be fair and reasonable.\n\nFor the three months ended March 31, 2026 and December 31, 2025, the Company incurred reimbursement costs of $0.3 million and $0.3 million, respectively and are included in administration and custodian fees in the accompanying consolidated statements of income. As of March 31, 2026 and December 31, 2025 the Company owes the Investment Manager reimbursement costs in the amount of $0 million and $0.5 million, respectively and are included in related party payables and accrued expenses in the accompanying consolidated balance sheets.\n\nExpense Limitation\n\nPursuant to an Expense Limitation Agreement, as amended on June 20, 2022, the Investment Manager may determine to cap Organizational Expenses and Company Expenses in the aggregate that are borne by the Company to the extent necessary to prevent Organizational Expenses and Company Expenses, on an annualized basis, from exceeding a percentage determined by the Investment Manager in its discretion. This cap was maintained until the third anniversary of the Initial Closing, which is November 5, 2024. Pursuant to the cap, any fees waived and expenses borne by the Investment Manager may be charged to the Company during the three year period that the Expense Cap is in place, provided that no such payment will be made that would cause the Company’s expenses to exceed the same cap. Extraordinary expenses (including, but not limited to, litigation expenses, indemnification expenses, lender liability expenses and other expenses not incurred in the ordinary course of the Company’s business), the Management Fee, the Incentive Fee, interest expenses, financing costs and expenses, reserves for and costs associated with determining current expected credit losses, loan servicing fees and expenses and other fees and expenses incurred in connection with the acquisition, disposition, ownership and operating of the Portfolio Investments are not included as Company Expenses for purposes of calculating the expense cap. For the three months ended March 31, 2026, the Expense Cap was no longer in place.\n\n10. Risks and Uncertainties\n\nThe Company’s financial condition may be adversely affected by a significant economic downturn and it may be subject to legal, regulatory, reputational and other unforeseen risks that could have a material adverse effect on the Company’s operations. A sustained downturn in the United States or global economy or any particular segment thereof could impede the ability of the Company’s portfolio entities to perform under or refinance their existing obligations and impair the Company’s ability to effectively exit investments on favorable terms. Any of the foregoing events could result in substantial or total losses to the Company in respect of certain investments, which losses will likely be exacerbated by the presence of leverage in the Company’s capital structure.\n\n11. Member’s Capital\n\nThe following table sets forth the dividends declared and their related tax characterization for the fiscal tax years ended March 31, 2026 and 2025:\n\n \n\nFiscal Tax Year\n\n \n\nDistributions\nDeclared\n\n \n\n \n\nReturn of\nCapital\n\n \n\n \n\nDividends\n\n \n\nThree Months Ended March 31, 2026\n\n \n\n \n\n100.00\n\n%\n\n \n\n \n\n0.00\n\n \n\n \n\n \n\n100.00\n\n%\n\nThree Months Ended March 31, 2025\n\n \n\n \n\n100.00\n\n%\n\n \n\n \n\n0.00\n\n \n\n \n\n \n\n100.00\n\n%\n\n \n\n12. Commitments and Contingencies\n\nCommitments\n\nThe Company may enter into commitments to fund investments. As of March 31, 2026 and December 31, 2025, the Company believed that it had adequate financial resources to satisfy its unfunded commitments. The amounts associated with unfunded\n\n24\n\n \n\ncommitments to provide funds to portfolio companies are not recorded in the Company’s consolidated balance sheets. Since these commitments and the associated amounts may expire without being drawn upon, the total commitment amount does not necessarily represent a future cash requirement. The Company had the following unfunded commitments by investment as of March 31, 2026 (in ‘000s):\n\n \n\nInvestment\n\n \n\nExpiration\nDate\n\n \n\nUnfunded\nCommitment\n\n \n\nLoan 5\n\n \n\n8/5/2026\n\n \n\n$\n\n—\n\n \n\nLoan 6\n\n \n\n7/5/2026\n\n \n\n \n\n—\n\n \n\nLoan 8\n\n \n\n3/10/2027\n\n \n\n \n\n—\n\n \n\nLoan 9\n\n \n\n8/9/2026\n\n \n\n \n\n—\n\n \n\nLoan 12\n\n \n\n5/10/2027\n\n \n\n \n\n—\n\n \n\nLoan 14\n\n \n\n7/10/2027\n\n \n\n \n\n—\n\n \n\nLoan 15\n\n \n\n1/9/2027\n\n \n\n \n\n52\n\n \n\nLoan 16\n\n \n\n3/9/2027\n\n \n\n \n\n2,418\n\n \n\nLoan 17\n\n \n\n3/9/2027\n\n \n\n \n\n10,123\n\n \n\nLoan 18\n\n \n\n4/9/2028\n\n \n\n \n\n4,054\n\n \n\nLoan 19\n\n \n\n6/9/2028\n\n \n\n \n\n14,133\n\n \n\nLoan 20\n\n \n\n7/9/2027\n\n \n\n \n\n2,629\n\n \n\nLoan 21\n\n \n\n12/1/2028\n\n \n\n \n\n—\n\n \n\nLoan 22\n\n \n\n8/9/2028\n\n \n\n \n\n—\n\n \n\nLoan 23\n\n \n\n10/9/2028\n\n \n\n \n\n13,105\n\n \n\nLoan 24\n\n \n\n11/9/2027\n\n \n\n \n\n2,366\n\n \n\nLoan 25\n\n \n\n2/9/2028\n\n \n\n \n\n45,700\n\n \n\nLoan 26\n\n \n\n4/9/2029\n\n \n\n \n\n—\n\n \n\nTotal\n\n \n\n \n\n \n\n$\n\n94,580\n\n \n\n \n\nAs of March 31, 2026, the Company is subject to an unfunded commitment amount of $45.9 million from the underlying interest in the equity method investments. The Company does not expect these unfunded commitments to impact the Company’s overall liquidity or capital resources.\n\nThe Company had the following unfunded commitments by investment as of December 31, 2025 (in ‘000s):\n\n \n\nInvestment\n\n \n\nExpiration\nDate\n\n \n\nUnfunded\nCommitment\n\n \n\nLoan 1\n\n \n\n1/10/2026\n\n \n\n$\n\n—\n\n \n\nLoan 5\n\n \n\n8/5/2026\n\n \n\n \n\n—\n\n \n\nLoan 6\n\n \n\n7/5/2026\n\n \n\n \n\n—\n\n \n\nLoan 8\n\n \n\n3/10/2026\n\n \n\n \n\n242\n\n \n\nLoan 9\n\n \n\n8/9/2026\n\n \n\n \n\n—\n\n \n\nLoan 12\n\n \n\n5/10/2027\n\n \n\n \n\n—\n\n \n\nLoan 14\n\n \n\n7/10/2027\n\n \n\n \n\n—\n\n \n\nLoan 15\n\n \n\n1/9/2027\n\n \n\n \n\n52\n\n \n\nLoan 16\n\n \n\n3/9/2027\n\n \n\n \n\n2,654\n\n \n\nLoan 17\n\n \n\n3/9/2027\n\n \n\n \n\n10,742\n\n \n\nLoan 18\n\n \n\n4/9/2028\n\n \n\n \n\n4,392\n\n \n\nLoan 19\n\n \n\n6/9/2028\n\n \n\n \n\n14,133\n\n \n\nLoan 20\n\n \n\n7/9/2027\n\n \n\n \n\n3,000\n\n \n\nLoan 21\n\n \n\n12/1/2028\n\n \n\n \n\n—\n\n \n\nLoan 22\n\n \n\n8/9/2028\n\n \n\n \n\n—\n\n \n\nLoan 23\n\n \n\n10/9/2028\n\n \n\n \n\n13,105\n\n \n\nLoan 24\n\n \n\n11/9/2027\n\n \n\n \n\n2,366\n\n \n\nTotal\n\n \n\n \n\n \n\n$\n\n50,686\n\n \n\n \n\n25\n\n \n\nAs of December 31, 2025, the Company is subject to an unfunded commitment amount of $45.9 million from the underlying interest in the equity method investments. The Company does not expect these unfunded commitments to impact the Company’s overall liquidity or capital resources.\n\nContingencies\n\nIn the normal course of business, the Company enters into contracts that provide a variety of general indemnifications. Any exposure to the Company under these arrangements could involve future claims that may be made against the Company. Currently, no such claims exist or are expected to arise and, accordingly, the Company has not accrued any liability in connection with such indemnifications.\n\nThe Company is subject to various legal proceedings and claims that arise in the ordinary course of business. These matters are generally covered by insurance. Management believes that final outcome of such matters will not have a material adverse effect on the financial position of, results of operations or liquidity of the Company.\n\n13. Economic Dependency\n\nUnder various agreements, the Company has engaged or will engage the Investment Manager, its affiliates and entities under common control with the Investment Manager to provide certain services that are essential to the Company, including asset management services, asset acquisition, origination or disposition decisions, as well as other administrative responsibilities for the Company including accounting and legal services, human resources and information technology.\n\nAs a result of these relationships, the Company is dependent upon the Investment Manager and its affiliates. In the event that these companies are unable to provide the Company with the respective services, the Company will be required to find alternative providers of these services.\n\n14. Subsequent Events\n\nSubsequent events after the balance sheet date have been evaluated through the date the consolidated financial statements were issued. Other than the items discussed below, there were no subsequent events requiring adjustment to, or disclosure in, the consolidated financial statements.\n\nOn April 1, 2026, AB CRE PDF Lending C LLC (“PDF Lending C”), entered into an amendment to its Master Repurchase Agreement with Citibank, N.A., pursuant to which the stated termination date was extended from April 1, 2027 to April 1, 2028.\n\nOn April 1, 2026, PDF Lending C entered into an amendment to its fee letter with Citibank, N.A., pursuant to which the facility amount was increased from $258.2 million to $500.0 million.\n\nOn May 6, 2026, the Company became party to that certain Master Repurchase Agreement, dated September 29, 2015 (the “2015 MS Repurchase Agreement”) by and between Morgan Stanley Bank N.A. (“Morgan Stanley Bank”) and the counterparties thereto, pursuant to that Second Amendment to the 2015 MS Repurchase Agreement, executed May 6, 2026 and dated May 1, 2026 (the “Second MS MRA Amendment”). The 2015 MS Repurchase Agreement had been amended prior to the Second MS MRA Amendment by that certain First Amendment to the Master Repurchase Agreement, dated June 1, 2021 (the “First MS MRA Amendment”). The 2015 MS Repurchase Agreement as amended by the First MS MRA Amendment and the Second MS MRA Amendment is referred to herein as the “2015 Repurchase Agreement.” Any capitalized terms used herein and not defined herein shall have the meanings ascribed to them in the 2015 Repurchase Agreement.\n\nPursuant to the 2015 Repurchase Agreement, from time to time, the Company (as Seller) may enter into transactions with Morgan Stanley Bank (as Buyer) in which the Company sells securities or other assets to Morgan Stanley Bank against the payment of funds, with a simultaneous agreement by Morgan Stanley Bank to transfer such securities or other assets back to the Company at a date certain or on demand, against the transfer of funds by the Company (each, a “Repurchase Transaction”).\n\nUnder the 2015 Repurchase Agreement, the purchase price to be paid by Morgan Stanley Bank to the Company shall be an amount to be agreed upon for each Repurchase Transaction. The Repurchase Price for each Repurchase Transaction shall equal the sum of (i) the applicable purchase price for such Repurchase Transaction, plus (ii) the accrued and unpaid Purchase Price Differential applicable to the Repurchase Transaction (calculated as (a) a per annum rate equal to Term SOFR on a 360-day per year basis for the actual number of days during the period commencing on the purchase date of the Repurchase Transaction and ending on the repurchase date applicable thereto, plus (b) an additional margin rate to be agreed upon for such Repurchase Transaction), plus or minus (iii) any amounts paid by Morgan Stanley or the Company to one another in connection with a Margin Call exercised in connection with such Transaction. There is no set maturity date under the 2015 Repurchase Agreement, and the 2015 Repurchase Agreement may be terminated upon written notice delivered by either party.\n\n26\n\n \n\nAmong other things, the First MS MRA Amendment adjusted the base rate applicable to the Purchase Price Differential from LIBOR to an alternative reference rate (SOFR) and established mandatory passthrough of income derived from the assets underlying Repurchase Transactions under the 2015 Repurchase Agreement. The Second MS MRA Amendment, among other things, added the Company as a party to the 2015 Repurchase Agreement and set the minimum trigger amount for a Margin Call to $250,000.\n\nThe 2015 Repurchase Agreement contains representations, warranties, covenants, events of default and indemnities that are customary for an agreement of its type. The foregoing description is only a summary of the material terms of the 2015 Repurchase Agreement and is qualified in its entirety by reference to a copy of the agreements forming the 2015 Repurchase Agreement which are filed as Exhibits 10.1, 10.2 and 10.3 to that certain Current Report on Form 8-K filed on May 12, 2026 and incorporated by reference herein.\n\n27"}