• adverse developments in the availability of attractive loan and other investment opportunities whether they are due to competition, regulation or otherwise, could adversely affect our results of operations; • global economic trends and economic conditions, including heightened inflation, slower growth or recession, changes to fiscal and monetary policy, higher interest rates, labor shortages, currency fluctuations and challenges in global supply chains; • increased competition from entities engaged in mor ...

[Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) KREF reported Q2 2024 net income of $20.2 million but a $108.7 million distributable loss, driven by $136.0 million in realized losses, while maintaining strong liquidity Q2 2024 vs Q1 2024 Financial Results (per diluted share) | Metric | Q2 2024 | Q1 2024 | | :--- | :--- | :--- | | **Net Income (Loss) Attributable to Common Stockholders** | $20.2M ($0.29/share) | ($8.7)M (($0.13)/share) | | **Distributable Earnings (Loss)** | ($108.7)M (($1.57)/share) | $26.7M ($0.39/share) | - The company took title to two properties (office and life science) and wrote off a mezzanine office loan, resulting in a combined realized loss of **$136.0 million**[4](index=4&type=chunk) - Maintained a strong liquidity position of **$643.9 million** and reduced total leverage ratio to **3.9x** after receiving **$384.5 million** in loan repayments[4](index=4&type=chunk) - The **$6.6 billion** loan portfolio is **99%** floating rate, with **60%** in Multifamily and Industrial assets, and a weighted average LTV of **65%**[4](index=4&type=chunk) - Management commentary highlighted meaningful progress in working through the portfolio, resulting in increased liquidity, lower leverage, and a stable book value[4](index=4&type=chunk) [Portfolio Summary](index=3&type=section&id=Portfolio%20Summary) KREF's portfolio as of June 30, 2024, totaled $6.9 billion outstanding principal, primarily senior loans ($6.6 billion) with a 65% weighted average LTV Portfolio Composition as of June 30, 2024 ($ in millions) | Investment | Outstanding Principal Amount | Carrying Value | Weighted Average LTV | | :--- | :--- | :--- | :--- | | Senior Loans | $6,575.9 | $6,450.3 | 65% | | Real Estate Assets | $335.5 | $335.5 | n.a. | | CMBS B-Pieces | $35.3 | $35.3 | 58% | | **Total/Weighted Average** | **$6,946.7** | **$6,821.1** | **65%** | [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) KREF reconciled GAAP Net Income of $20.2 million to a $108.7 million Distributable Loss for Q2 2024, primarily due to a $135.8 million net realized loss on loan write-offs Reconciliation to Distributable Loss for Q2 2024 ($ in thousands) | Metric | Amount | | :--- | :--- | | Net Income Attributable to Common Stockholders | $20,223 | | Adjustments (Non-cash equity comp, unrealized gains, etc.) | $7,531 | | **Distributable Earnings before realized loss** | **$27,754** | | Net realized loss on loan write-offs | ($135,811) | | **Distributable Loss** | **($108,672)** | - The significant Distributable Loss was driven by a **$135.8 million** charge for net realized losses, which included a **$98.5 million** write-off on two senior loans upon deed-in-lieu of foreclosure and a **$37.5 million** write-off of a mezzanine loan[7](index=7&type=chunk) [Corporate Information](index=4&type=section&id=Corporate%20Information) KREF, a REIT managed by KKR & Co. Inc., specializes in transitional senior loans for commercial real estate and will host a conference call to discuss results and non-GAAP measures - The company will host a conference call on Tuesday, July 23, 2024, at 10:00 a.m. Eastern Time to discuss its financial results[9](index=9&type=chunk) - KREF is a REIT that primarily originates or acquires transitional senior loans collateralized by institutional-quality commercial real estate assets and is externally managed by an affiliate of KKR & Co. Inc[12](index=12&type=chunk) - Distributable Earnings is a non-GAAP measure defined as GAAP net income adjusted for non-cash items (like equity compensation and unrealized gains/losses) and including realized losses, to better represent the company's capacity to pay dividends[16](index=16&type=chunk)[19](index=19&type=chunk)

imaginima/iStock via Getty Images On our last coverage of KKR Real Estate Finance Trust Inc. (NYSE:KREF) we identified the potential reasons that we did not want to chase this. The stock has moved lower, and even the large yield has failed to get total returns into positive territory. The total return has lagged the broader S&P 500 (SPY) by almost 27%. Seeking Alpha We look at the recently released Q1-2024 results and explain why you should not take your eyes off the ball, even though it might appear that t ...

Financial Data and Key Metrics Changes - For Q1 2024, the company reported a GAAP net loss of $8.7 million or negative $0.13 per share, while distributable earnings were $26.7 million or $0.39 per share [34] - Book value per share as of March 31, 2024, was $15.18, reflecting a decline of approximately 2% quarter-over-quarter [34] - The CECL allowance increased to $3.54 per share from $3.06 per share in the previous quarter [34] Business Line Data and Key Metrics Changes - The office sector remains challenged, but there is increased liquidity compared to six months ago [45] - Life science loans saw one additional downgrade to the watch list due to short-term leasing slowdowns, despite long-term demand remaining positive [46] - Multifamily fundamentals have slowed, with a 50% decline in multifamily construction starts in 2024 versus 2022, yet the sector has performed well with a weighted average rent increase of 3.4% year-over-year [47] Market Data and Key Metrics Changes - The commercial real estate market is healing with increased transaction volume and price transparency, despite higher-than-expected CPI impacting near-term interest rate expectations [36] - The lending environment is competitive, with significant capital availability, leading to tighter spreads on stabilized real estate [42] - The company expects repayments to exceed fundings, projecting over $1 billion in repayments throughout 2024 [50] Company Strategy and Development Direction - The company aims to optimize its REO portfolio and believes that selling these assets can generate an additional $0.12 per share in distributable earnings per quarter [52] - The strategy includes focusing on internal portfolio management and monitoring credit migration before resuming new originations [76][80] - The company maintains a strong liquidity position with $620 million available at quarter-end, including $107 million in cash [49] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the market's recovery, noting that the supply-demand imbalance in lending is expected to normalize [42] - The company anticipates that the office sector will not see further negative ratings migration from its watch list [45] - Management highlighted the importance of consistent repayments and portfolio stability before increasing lending activities [76] Other Important Information - The company has diversified financing sources totaling $8.7 billion, with 78% of secured financing being non-mark-to-market [49] - The weighted average risk rating on the portfolio remains at 3.2, with 85% rated 3 or better [59] Q&A Session Summary Question: How should we think about reserve rates as losses are realized? - Management indicated that the reserve rate is around 150-160 basis points and is reflective of the current market conditions [64] Question: What is the outlook for 4-rated loans, particularly in multifamily? - Management believes there is still good coverage from a collateral standpoint and does not anticipate material loss content in the multifamily segment [73] Question: What factors will influence the decision to resume new originations? - Management is looking for consistent repayments, portfolio migration stability, and leverage ratios to return to historical levels before resuming new lending [76][80]

Portfolio Overview - The company holds a $7.5 billion predominantly senior loan portfolio with a weighted average unlevered all-in yield of 8.9%[1] - The company collected 97% of interest payments due on the loan portfolio[2,4] - Multifamily and industrial assets represent 58% of the loan portfolio[94] - The portfolio is 99% floating-rate loans indexed to Term SOFR[132] Financial Performance - Q1 2024 Distributable Earnings were $0.39 per diluted share, providing 1.54x dividend coverage[75] - Q1 2024 Net Loss was ($0.13) per diluted share[84] - Book Value per Share is $15.18, which includes a CECL allowance of $246 million, or ($3.54) per share[84] Liquidity and Capitalization - The company has diversified financing sources totaling $8.7 billion, with $2.9 billion of undrawn capacity[1,15] - The company's current liquidity is $620 million, including $107 million in cash and $450 million undrawn capacity on the corporate revolver[73,94] - 78% of the company's secured financing is fully non-mark-to-market[73,94,116] Loan Repayments and Credit Quality - The company received $336 million in loan repayments, including full loan repayments of $173 million on a previously 4-rated senior office loan in Washington, D C and $151 million on a previously 4-rated senior condo loan in New York, NY[1]

KKR Real Estate Finance (KREF) reported $39.14 million in revenue for the quarter ended March 2024, representing a year-over-year decline of 15.9%. EPS of $0.39 for the same period compares to $0.48 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $43.16 million, representing a surprise of -9.29%. The company delivered an EPS surprise of +5.41%, with the consensus EPS estimate being $0.37.While investors scrutinize revenue and earnings changes year-over-year and how they compare w ...

KKR Real Estate Finance (KREF) came out with quarterly earnings of $0.39 per share, beating the Zacks Consensus Estimate of $0.37 per share. This compares to earnings of $0.48 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.41%. A quarter ago, it was expected that this real estate finance company would post earnings of $0.45 per share when it actually produced earnings of $0.47, delivering a surprise of 4.44%.Over the last f ...

[Part I - Financial Information](index=5&type=section&id=Part%20I%20-%20Financial%20Information) This section presents the company's unaudited condensed consolidated financial statements, management's discussion and analysis, and disclosures on market risk and internal controls [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20%28Unaudited%29) The company reported a reduced net loss in Q1 2024, driven by a lower provision for credit losses, while total assets and equity saw slight decreases [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20%28Unaudited%29%20as%20of%20March%2031%2C%202024%20and%20December%2031%2C%202023) Total assets decreased to **$7.26 billion** as of March 31, 2024, primarily due to reduced commercial real estate loans, with a corresponding decline in liabilities and a slight decrease in total equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$7,256,695** | **$7,547,618** | | Commercial real estate loans, held-for-investment, net | $6,869,622 | $7,133,078 | | Cash and cash equivalents | $106,517 | $135,898 | | **Total Liabilities** | **$5,876,605** | **$6,143,436** | | Secured financing agreements, net | $3,521,796 | $3,782,419 | | Collateralized loan obligations, net | $1,942,569 | $1,942,171 | | **Total Equity** | **$1,380,090** | **$1,404,182** | [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20%28Unaudited%29%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202024%20and%202023) For Q1 2024, the company reported a net loss of **$8.7 million**, a significant improvement from the prior year, mainly due to a reduced provision for credit losses despite lower net interest income Condensed Consolidated Statement of Income Highlights (in thousands, except per share data) | Account | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Total net interest income | $39,144 | $46,554 | | Provision for credit losses, net | $33,266 | $60,467 | | Total operating expenses | $50,147 | $76,249 | | Net Income (Loss) | $(3,429) | $(25,254) | | Net Income (Loss) Attributable to Common Stockholders | $(8,739) | $(30,810) | | **Basic and Diluted Net Income (Loss) Per Share** | **$(0.13)** | **$(0.45)** | | Dividends Declared per Share of Common Stock | $0.25 | $0.43 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20%28Unaudited%29%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202024%20and%202023) Net cash provided by operating activities was **$34.5 million** in Q1 2024, with investing activities providing **$236.8 million**, while financing activities resulted in a **$300.8 million** outflow, leading to a net cash decrease of **$29.5 million** Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $34,488 | $41,635 | | Net cash provided by (used in) investing activities | $236,756 | $(113,080) | | Net cash provided by (used in) financing activities | $(300,770) | $87,143 | | **Net Increase (Decrease) in Cash** | **$(29,526)** | **$15,698** | [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20%28Unaudited%29) The notes detail accounting policies, the **$7.1 billion** commercial real estate loan portfolio, increased allowance for credit losses, and **$5.8 billion** in debt obligations, confirming covenant compliance - The company is a mortgage REIT focused on originating and acquiring transitional senior loans secured by commercial real estate (CRE) assets and is externally managed by KKR Real Estate Finance Manager LLC[29](index=29&type=chunk)[31](index=31&type=chunk) - The allowance for credit losses is measured under the Current Expected Credit Loss (CECL) model, using methods like probability of default/loss given default and probability-weighted expected cash flow, incorporating macroeconomic forecasts[65](index=65&type=chunk)[66](index=66&type=chunk) - As of March 31, 2024, the company had future funding commitments of **$725.0 million** related to its commercial real estate loans and a remaining commitment of **$4.3 million** to the RECOP I aggregator vehicle[220](index=220&type=chunk)[221](index=221&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=47&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the impact of macroeconomic factors on its **$7.5 billion** loan portfolio, reporting Q1 2024 Distributable Earnings of **$0.39** per share and maintaining strong liquidity with **78%** non-mark-to-market financing - The company's investment strategy is to originate or acquire transitional senior loans collateralized by institutional-quality CRE assets, with an objective of capital preservation and generating attractive risk-adjusted returns[256](index=256&type=chunk) - As of March 31, 2024, the loan portfolio was **$7.5 billion**, with **99%** of loans earning a floating rate. Multifamily and industrial loans comprised **58%** of the portfolio[272](index=272&type=chunk)[273](index=273&type=chunk)[275](index=275&type=chunk) - The company's financing is comprised of **78%** Non-Mark-to-Market sources, which are not subject to credit or capital markets mark-to-market provisions, reducing exposure to market volatility[304](index=304&type=chunk)[345](index=345&type=chunk) Key Financial Indicators per Share | Indicator | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Net Income (Loss) per Share | $(0.13) | $(0.27) | | Dividends Declared per Share | $0.25 | $0.43 | | Distributable Earnings per Share | $0.39 | $(0.37) | | Book Value per Share | $15.18 | $15.52 | [Our Portfolio](index=50&type=section&id=Our%20Portfolio) As of March 31, 2024, the company's **$7.5 billion** investment portfolio consisted primarily of senior commercial real estate loans, with an average risk rating of **3.2**, and loan repayments exceeding new fundings Loan Portfolio Risk Rating (by Total Loan Exposure) | Risk Rating | % of Portfolio (Mar 31, 2024) | % of Portfolio (Dec 31, 2023) | | :--- | :--- | :--- | | 1 (Very Low Risk) | 0% | 0% | | 2 (Low Risk) | 1% | 1% | | 3 (Medium Risk) | 84% | 86% | | 4 (High Risk) | 5% | 6% | | 5 (Impaired/Loss Likely) | 10% | 7% | Collateral Property Type Diversification | Property Type | % of Portfolio (Mar 31, 2024) | | :--- | :--- | | Multifamily | 43.4% | | Office | 20.7% | | Industrial | 15.1% | | Life Science | 11.0% | | Hospitality | 5.1% | | Other | 4.7% | - The average risk rating of the loan portfolio was **3.2** as of March 31, 2024, weighted by total loan exposure, consistent with the prior quarter[295](index=295&type=chunk) [Results of Operations](index=62&type=section&id=Results%20of%20Operations) Net interest income decreased quarter-over-quarter and year-over-year due to non-accrual loans, while total operating expenses significantly declined in both periods, primarily driven by a lower provision for credit losses - Q1 2024 vs Q4 2023: Net interest income decreased by **$7.3 million** (**16%**) primarily due to the suspension of interest income accrual on loans accounted for under the cost recovery method[333](index=333&type=chunk)[334](index=334&type=chunk) - Q1 2024 vs Q4 2023: Total operating expenses decreased by **$13.4 million** (**21%**), mainly due to a **$16.2 million** lower provision for credit losses[333](index=333&type=chunk)[337](index=337&type=chunk) - Q1 2024 vs Q1 2023: Total operating expenses decreased by **$26.1 million** (**34%**), primarily due to a **$27.2 million** lower provision for credit losses and a **$1.8 million** decrease in incentive compensation[339](index=339&type=chunk)[343](index=343&type=chunk) [Liquidity and Capital Resources](index=66&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2024, the company had **$620.1 million** in total liquidity, a debt-to-equity ratio of **2.1x**, and believes its current liquidity is sufficient to meet all financial obligations Sources of Liquidity (in thousands) | Source | March 31, 2024 | | :--- | :--- | | Cash and cash equivalents | $106,517 | | Available borrowings under revolving credit agreement | $450,000 | | Available borrowings under other financing | $63,552 | | **Total** | **$620,069** | Leverage Ratios | Ratio | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Debt-to-equity ratio | 2.1x | 2.3x | | Total leverage ratio | 4.1x | 4.2x | - The company had **$108.4 million** of unencumbered senior loans that can be pledged to financing facilities as an additional source of liquidity[346](index=346&type=chunk)[355](index=355&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=71&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exposed to credit, interest rate, prepayment, financing, and real estate risks, with a 100 basis point change in index rates impacting net cash flows by approximately **$2.1 million**, and **78%** of financing being non-mark-to-market - The company's net income is sensitive to interest rate changes. A 100 basis point decrease in index rates would decrease expected cash flows by approximately **$2.1 million** (**$0.03** per share) for a three-month period, while a 100 basis point increase would increase cash flows by the same amount[385](index=385&type=chunk) - The company faces credit risk from potential borrower defaults, exacerbated by inflation and rising interest rates which can negatively impact underlying real estate collateral values[378](index=378&type=chunk)[379](index=379&type=chunk) - Financing risk is managed by using various forms of leverage, including repurchase facilities and collateralized loan obligations. Weakness in financial markets could adversely affect lenders and increase financing costs[388](index=388&type=chunk) [Item 4. Controls and Procedures](index=73&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that as of March 31, 2024, the company's disclosure controls and procedures were effective at a reasonable assurance level[392](index=392&type=chunk) - No changes occurred during the quarter ended March 31, 2024, that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[393](index=393&type=chunk) [Part II - Other Information](index=74&type=section&id=Part%20II%20-%20Other%20Information) This section covers legal proceedings, risk factors, unregistered sales of equity securities, defaults, mine safety disclosures, other information, and a list of exhibits [Item 1. Legal Proceedings](index=74&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in any material legal proceedings - As of March 31, 2024, KREF was not involved in any material legal proceedings[218](index=218&type=chunk)[394](index=394&type=chunk) [Item 1A. Risk Factors](index=74&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K - There have been no material changes to the risk factors previously disclosed in the Form 10-K[395](index=395&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=74&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any common stock during Q1 2024, retaining **$100.0 million** in remaining capacity under its share repurchase program - The company did not repurchase any of its common stock during the three months ended March 31, 2024[397](index=397&type=chunk) - As of March 31, 2024, the company had **$100.0 million** of remaining capacity under its share repurchase program[397](index=397&type=chunk) [Item 3. Defaults Upon Senior Securities](index=74&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) None [Item 4. Mine Safety Disclosures](index=74&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable [Item 5. Other Information](index=74&type=section&id=Item%205.%20Other%20Information) None [Item 6. Exhibits](index=75&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including officer certifications and XBRL data files

New York, NY, April 23, 2024 - KKR Real Estate Finance Trust Inc. (the "Company" or "KREF") (NYSE: KREF) today reported its financial results for the quarter ended March 31, 2024. KKR REAL ESTATE FINANCE TRUST INC. REPORTS FIRST QUARTER 2024 FINANCIAL RESULTS Reported net loss attributable to common stockholders of ($8.7) million, or ($0.13) per diluted share of common stock, for the three months ended March 31, 2024, compared to net loss attributable to common stockholders of ($18.7) million, or ($0.27) pe ...

Financial Data and Key Metrics Changes - For Q4 2023, the company reported a GAAP net loss of $18.7 million or negative $0.27 per diluted share, with distributable earnings of negative $26 million or negative $0.37 per share, including a write-off of $59 million or $0.85 per share [76] - Distributable earnings prior to realized losses were $0.47 per share, compared to a dividend of $0.43 per share [76] - Book value per share as of December 31, 2023, was $15.52, a decline of approximately 5% quarter-over-quarter [76] Business Line Data and Key Metrics Changes - The multifamily segment remains the largest property type, representing approximately 41% of the portfolio, with stable underlying performance and weighted average rent increases of 3.9% year-over-year [78] - Office properties decreased from 26% to 22% of the portfolio, with a full payoff of a $173 million previously risk-rated 4 loan secured by a Washington, D.C. property [78] - The weighted average risk rating on the portfolio remained at 3.2, with 87% of the portfolio rated 3 or better [70] Market Data and Key Metrics Changes - The company noted a significant increase in transaction volumes, both acquisitions and refinances, with the lending pipeline up over 50% from the previous year [104] - The broader market sentiment has improved, with capital flowing into the markets as tail risks driven by inflation and higher interest rates have subsided [55] - The company expects acquisition and refinance activity to increase this year, reflecting a healthy lending market [94] Company Strategy and Development Direction - The company aims to maintain high levels of liquidity and fortify its liability structure while proactively managing its portfolio [87] - The strategy includes taking title to certain assets to stabilize cash flows before selling, with a focus on high-quality real estate [58] - The company is looking to redeploy capital as it realizes losses and removes loans from non-accrual status, aiming to generate additional distributable earnings [102] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the multifamily portfolio, expecting minimal losses despite some noise due to interest rate caps and modifications [36] - The company highlighted the importance of patience in managing REO assets and the need to protect book value while working through challenges [80] - Management noted that the market has changed significantly compared to the previous year, with a better understanding of interest rates and inflation [40] Other Important Information - The Board of Directors declared a dividend of $0.25 per share for Q1 2024, payable on April 15, 2024 [77] - The company has built a diversified liability structure with $8.9 billion of financing capacity and $2.8 billion of undrawn capacity [70] - The CECL allowance decreased to $3.06 per share from $3.21 per share in the previous quarter [76] Q&A Session Summary Question: What drove the decision to cut the dividend? - The dividend cut was primarily driven by earnings drag from REO assets and non-performing loans, with concerns about multifamily loan maturities also playing a role [73] Question: How will the Seattle life science asset discussions play out? - Management indicated that discussions regarding the Seattle asset are ongoing and an update is expected by the next call [74] Question: What are the expectations for the office portfolio? - Management expressed confidence that there would not be significant intermediate-term migration of the office portfolio into higher risk ratings, despite ongoing market stress [81]