For the first quarter ended March 31, 2025, loans risk rated '4' and '5' made up about 37% of adjusted total equity (ATE). Real estate owned (REO) declined to $514 million from $601 million at year-end 2024 as the company exited two foreclosed assets ($133 million GAAP basis) at or above its GAAP basis, which was offset by one new foreclosed multifamily ($45 million) loan. As of March 31, 2025, STWD's exposure to U.S. office is 9% of assets. Loans on nonaccrual totaled $1.03 billion (7% of gross commercial loans and 15% of ATE), unchanged from year-end 2024 but up from $547 million in 2023 (3.5% of gross commercial receivables and 9% of ATE). Based on the resolutions and growth
