Risk Factors Update Summary

• Recent and drastic increases in interest rates could impact borrowers' ability to make payments, increasing default risk.
• A significant increase from $357.1 million to $715.1 million in investments with a carrying value.
• Added Maryland General Corporation Law (MGCL) and factors for dividend payments. This change might impact dividend policy.
• Continuing uncertainty in the office leasing market due to remote work could affect borrowers' ability to make loan payments.
• A decrease from 6% to 3% in loans secured by office properties.
• Ownership limits for common stock increased to prevent violations. This change could affect ownership structure.
• Increased excise tax on stock repurchases to 1%. This change may impact stock repurchase decisions.
• A decrease from 22% to 19% in loans secured by CRE properties.
• A decrease from 20% to 14% in loans secured by hospitality properties.
• Added 100% penalty tax on certain transactions with TRSs not at arm's length. This could affect TRS transactions.
• A decrease from 8% to 9% in loans secured by condo properties.
• Added holding period requirements for maintaining REIT status. This change may impact investment strategies.
• Mentioned the need to comply with new laws and regulations. This could lead to increased compliance costs.
• Added the need to establish and maintain effective internal controls. This change may increase operational expenses.