UNITED STATES SECURITIES AND EXCHANGE COMMISSION ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Washington, D.C. 20549 For the transition period from to FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or | Delaware | | 74-1677330 | | --- | --- | --- | | (State or other jurisdiction of | | (I.R.S. Employer | | incorporation or organization) | | Identificatio ...

Stewart Information Services Corporation (NYSE:STC) Q1 2024 Earnings Conference Call April 25, 2024 8:30 AM ET Company Participants Kathryn Bass - Director of Investor Relations Frederick Eppinger - Chief Executive Officer David Hisey - Chief Financial Officer Conference Call Participants Bose George - KBW John Campbell - Stephens Inc. Geoffrey Dunn - Dowling Partners Operator Hello and thank you for joining the Stewart Information Services First Quarter 2024 Earnings Call. At this time, all participants ar ...

Exhibit 99.1 NEWS RELEASE STEWART INFORMATION SERVICES CORP. P.O. Box 2029 Houston, Texas 77252-2029 www.stewart.com CONTACT Kathryn Bass / Brian Glaze Investor Relations (713) 625-8633 Stewart Reports First Quarter 2024 Results HOUSTON, April 24, 2024 - Stewart Information Services Corporation (NYSE: STC) today reported net income attributable to Stewart of $3.1 million ($0.11 per diluted share) for the first quarter 2024, compared to a net loss of $8.2 million ($0.30 loss per diluted share) for the first ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-02658 STEWART INFORMATION SERVICES CORPORATION (Exact name of registrant as specified in its charter) | Delaware | | 74-1677330 | | --- ...

Stewart Information Services Corporation (NYSE:STC) Q4 2023 Earnings Call Transcript February 8, 2024 8:30 AM ET Company Participants Brian Glaze - Chief Accounting Officer Fred Eppinger - CEO David Hisey - CFO Conference Call Participants Soham Bhonsle - BTIG Bose George - KBW John Campbell - Stephens Inc. Geoffrey Dunn - Dowling & Partners Operator Hello, and thank you for joining the Stewart Information Services Fourth Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. ...

[PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents unaudited condensed consolidated financial statements for Q3 and 9M 2023 and 2022, showing a significant year-over-year decline in revenues and net income [Condensed Consolidated Statements of Income and Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) Net income attributable to Stewart significantly decreased in Q3 2023 to **$14.0 million** from **$29.4 million** due to lower total revenues Condensed Consolidated Statements of Income (Q3 & 9M) | Indicator | Q3 2023 ($M) | Q3 2022 ($M) | 9M 2023 ($M) | 9M 2022 ($M) | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | 601.7 | 716.4 | 1,675.2 | 2,413.4 | | **Income before taxes** | 27.1 | 45.5 | 42.1 | 211.9 | | **Net income attributable to Stewart** | 14.0 | 29.4 | 21.6 | 149.0 | | **Diluted EPS attributable to Stewart** | $0.51 | $1.08 | $0.79 | $5.45 | [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly decreased to **$2.67 billion** as of September 30, 2023, primarily due to reduced cash and investments Condensed Consolidated Balance Sheet Highlights | Asset/Liability/Equity | Sep 30, 2023 ($M) | Dec 31, 2022 ($M) | | :--- | :--- | :--- | | Cash and cash equivalents | 203.0 | 248.4 | | Total Investments | 660.7 | 710.1 | | **Total Assets** | **2,669.1** | **2,737.9** | | Notes payable | 445.2 | 447.0 | | Estimated title losses | 521.4 | 549.4 | | **Total Liabilities** | **1,309.9** | **1,367.6** | | **Total stockholders' equity** | **1,359.2** | **1,370.3** | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash provided by operating activities significantly declined to **$43.6 million** in 9M 2023 from **$167.0 million** in 2022, driven by lower net income Cash Flow Summary (Nine Months Ended Sep 30) | Cash Flow Activity | 2023 ($M) | 2022 ($M) | | :--- | :--- | :--- | | Cash provided by operating activities | 43.6 | 167.0 | | Cash used by investing activities | (36.8) | (225.3) | | Cash used by financing activities | (51.2) | (98.1) | | **Change in cash and cash equivalents** | **(45.4)** | **(165.0)** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail revenue declines in direct and agency title insurance, increased unrealized losses on debt securities, and the Title segment's reduced income before taxes - Statutory reserve funds, which are not available for current claim payments, were approximately **$510.8 million** in investments and **$11.0 million** in cash as of September 30, 2023[23](index=23&type=chunk) Operating Revenues by Type (Nine Months Ended Sep 30) | Revenue Type | 2023 ($M) | 2022 ($M) | | :--- | :--- | :--- | | Title insurance premiums: Direct | 470.8 | 646.8 | | Title insurance premiums: Agency | 723.5 | 1,154.5 | | Escrow fees | 117.2 | 166.7 | | Real estate solutions and abstract fees | 253.4 | 302.5 | | **Total Operating Revenues** | **1,647.9** | **2,412.1** | Segment Income Before Taxes (Nine Months Ended Sep 30) | Segment | 2023 ($M) | 2022 ($M) | | :--- | :--- | :--- | | Title segment | 70.2 | 228.2 | | Real estate solutions segment | 7.3 | 16.2 | | Corporate and other segment | (35.4) | (32.6) | | **Consolidated** | **42.1** | **211.9** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the decline in Q3 2023 net income to lower transaction volumes in the title business, driven by a high-interest-rate environment that has hampered home sales and mortgage originations - Q3 2023 net income attributable to Stewart was **$14.0 million** (**$0.51** per diluted share), a significant drop from **$29.4 million** (**$1.08** per diluted share) in Q3 2022[52](index=52&type=chunk) - Management identifies key headwinds including rising interest rates, low housing inventory, and declining mortgage originations[65](index=65&type=chunk) - Existing home sales were down **15%** YoY in September 2023, and total single-family mortgage originations fell **17%** in Q3 2023[66](index=66&type=chunk) - The company is focused on a cost-effective, scalable business model through technology, centralization, and outsourcing, with plans to improve margins via automation and system consolidation[96](index=96&type=chunk) [Results of Operations](index=19&type=section&id=Results%20of%20Operations) Operating revenues fell across all categories due to market headwinds, with direct title revenues dropping **17%** in Q3 2023 and agency revenues falling **22%** Direct Title Revenues (Q3) | Category | 2023 ($M) | 2022 ($M) | % Change | | :--- | :--- | :--- | :--- | | Non-commercial | 196.7 | 238.2 | (17)% | | Commercial | 59.7 | 69.2 | (14)% | | **Total direct title revenues** | **256.4** | **307.4** | **(17)%** | Closed Orders (Q3) | Order Type | 2023 | 2022 | % Change | | :--- | :--- | :--- | :--- | | Commercial | 3,661 | 4,444 | (18)% | | Purchase | 39,903 | 46,592 | (14)% | | Refinance | 10,397 | 14,343 | (28)% | | **Total** | **60,308** | **66,798** | **(10)%** | Expense Analysis (Q3) | Expense Category | 2023 ($M) | 2022 ($M) | % Change | | :--- | :--- | :--- | :--- | | Amounts retained by agencies | 219.0 | 280.5 | (22)% | | Employee costs | 181.5 | 195.1 | (7)% | | Other operating expenses | 130.5 | 151.2 | (14)% | | Title losses and related claims | 22.3 | 25.5 | (13)% | [Liquidity and Capital Resources](index=24&type=section&id=Liquidity%20and%20Capital%20Resources) The company held **$901.0 million** in total cash and investments as of September 30, 2023, with **$43.3 million** at the parent holding company - Total cash and investments were **$901.0 million** as of September 30, 2023, with **$521.8 million** held in statutory reserves and not available for current claim payments[89](index=89&type=chunk)[92](index=92&type=chunk) - The parent holding company's cash and unregulated subsidiaries totaled **$43.3 million** at September 30, 2023, funded by dividends and reimbursements from subsidiaries[90](index=90&type=chunk) - The company paid total dividends of **$37.5 million** (**$1.38** per share) in the first nine months of 2023, an increase from **$32.5 million** (**$1.20** per share) in the same period of 2022[100](index=100&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=27&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes in its investment strategies or market risks since the 2022 Form 10-K disclosures - The company reports no material changes to its market risk disclosures from the 2022 Form 10-K during the quarter ended September 30, 2023[109](index=109&type=chunk) [Controls and Procedures](index=27&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were adequate and effective as of September 30, 2023, with no material changes to internal control - The principal executive and financial officers concluded that disclosure controls and procedures were adequate and effective as of September 30, 2023[110](index=110&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control[111](index=111&type=chunk) [PART II – OTHER INFORMATION](index=28&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Legal Proceedings](index=28&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to ordinary course claims and lawsuits, but does not expect any to have a material adverse effect, believing reserves are adequate - This section incorporates by reference the discussion of legal proceedings in Note 11 of the financial statements and the 2022 Form 10-K[114](index=114&type=chunk) - The Company does not expect that any ordinary course proceedings will have a material adverse effect on its consolidated financial condition or results of operations and believes it has adequate reserves[44](index=44&type=chunk) [Risk Factors](index=28&type=section&id=Item%201A.%20Risk%20Factors) The company states there have been no material changes to the risk factors previously disclosed in its 2022 Form 10-K - The company reports no material changes to its risk factors since the 2022 Form 10-K[115](index=115&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=28&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase common stock in 9M 2023, except for shares covering tax withholding on vested restricted stock units - No common stock was repurchased during the first nine months of 2023, except for approximately **37,100** shares (aggregate purchase price of approximately **$1.6 million**) related to tax withholding on vested restricted unit grants[116](index=116&type=chunk) [Other Information](index=28&type=section&id=Item%205.%20Other%20Information) Book value per share decreased to **$49.42** as of September 30, 2023, from **$50.21** at year-end 2022 - Book value per share decreased to **$49.42** as of September 30, 2023, from **$50.21** as of December 31, 2022[117](index=117&type=chunk) [Exhibits](index=29&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the 10-Q report, including CEO/CFO certifications and XBRL data files - The report lists filed exhibits, including CEO/CFO certifications (31.1, 31.2, 32.1, 32.2) and XBRL data files[119](index=119&type=chunk)

Financial Data and Key Metrics Changes - In Q3 2023, the company reported net income of $14 million or $0.51 per diluted share on revenues of $602 million, a decrease from $43 million or $1.58 per diluted share in Q3 2022 [18][19] - Adjusted net income for the third quarter was $24 million, or $0.86 per diluted share, compared to $43 million or $1.58 per diluted share in the same quarter last year [19] - Total revenues in the Title segment decreased by $126 million or 19%, while pretax income decreased by $16 million or 32% compared to the prior year quarter [20] - The employee cost ratio increased to 31% in Q3 2023 from 27% in the previous year, primarily due to lower operating revenues [35] Business Line Data and Key Metrics Changes - Domestic commercial revenues decreased by $9 million or 15%, primarily due to lower transaction volume, while average commercial fee per file increased to approximately $14,200 from $13,700 in the prior year [21] - Domestic residential revenues declined by $37 million or 18%, primarily due to lower purchase and refinancing volumes, with average residential fee per file at $3,000, down 10% from last year [31] - In the Real Estate Solutions segment, third quarter pretax income was $2.6 million compared to $3.4 million last year, with a pretax margin of 3.8% compared to 4.8% in Q3 2022 [34] Market Data and Key Metrics Changes - The real estate market continues to experience low housing inventory, high mortgage rates, and lower commercial and residential real estate activity, contributing to lower operating results compared to the previous year [18] - Mortgage rates increased to around 7.5% during Q3, impacting transaction volumes and resulting in historic lows for existing home sales [11] - The company noted ongoing challenges in sectors like office and multifamily properties, while energy remains strong [13] Company Strategy and Development Direction - The company is focused on enhancing its operating model and investing in technology to improve customer experience and operational efficiency [26] - Retaining key talent and investing in leadership and technology are priorities to achieve long-term growth in commercial markets [6][8] - The company aims to balance strong financial discipline with targeted investments to navigate the current challenging environment [5][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term view of the real estate market and the company's ability to become a premier title services company [16] - The company anticipates that 2024 will be a transition year, with expectations for a return to a more normalized market in 2025 [25][50] - Management acknowledged the challenges posed by elevated mortgage rates and low transaction volumes but emphasized the importance of maintaining focus on long-term goals [12][11] Other Important Information - The company has a solid financial position, with total cash and investments of approximately $380 million above statutory premium reserve requirements and a fully available $200 million line of credit [37] - The company expects title losses to average in the low 4% of title revenues for the full year 2023 [33] Q&A Session Summary Question: Margin expectations for the next 12 to 18 months - Management indicated that 2025 is expected to see a return to a more normalized margin as transaction volumes recover [40][50] Question: Impact of recent rate changes on order counts - Management noted that order counts have been affected by recent rate changes, with expectations for continued declines in the fourth quarter [42][44] Question: Drivers of market share gains - Management highlighted improvements in technology and customer experience as key drivers for market share gains, particularly in targeted states [45][46] Question: Investment income trajectory - Management stated that investment income has seen an uptick due to favorable rate environments, but volumes could impact future performance [51] Question: Tax rate normalization - Management confirmed expectations for the tax rate to return to historical levels after a temporary increase due to lower foreign tax credits [63]

Financial Performance - Total operating revenues for Q2 2023 were $538.1 million, a decrease of 36.6% compared to $849.2 million in Q2 2022[11]. - Net income attributable to Stewart for the first half of 2023 was $7.6 million, down 36.4% from $119.6 million in the same period of 2022[11]. - Basic earnings per share attributable to Stewart for Q2 2023 was $0.58, a decline of 74.8% from $2.28 in Q2 2022[11]. - Consolidated revenues for the company were $549.2 million in Q2 2023, down from $844.1 million in Q2 2022, reflecting a 35% decline[50]. - Total revenues for the title segment decreased by 39% to $466.7 million in Q2 2023 from $761.1 million in Q2 2022, primarily due to declines in transaction volume[53]. - The real estate solutions segment reported a 14% decrease in operating revenues to $71.4 million in Q2 2023 compared to $82.9 million in Q2 2022, attributed to lower transaction volumes due to elevated interest rates[56]. Cash and Investments - Cash and cash equivalents decreased to $190.0 million as of June 30, 2023, from $248.4 million at the end of 2022, representing a decline of 23.4%[13]. - The company reported a cash used by operating activities of $16.0 million for the first half of 2023, compared to cash provided of $118.2 million in the same period of 2022[14]. - Total cash and investments as of June 30, 2023, amounted to $896.8 million, with $497.5 million held in the United States[90]. - Net cash used by operations in the first six months of 2023 was $16.0 million, a significant decrease from net cash provided by operations of $118.2 million in the same period in 2022[98]. - Total proceeds from securities investments sold and matured were $94.7 million in the first six months of 2023, compared to $52.3 million in the same period in 2022[99]. Liabilities and Equity - Total liabilities decreased to $1.31 billion as of June 30, 2023, down from $1.37 billion at the end of 2022, a reduction of 4.1%[13]. - Total stockholders' equity attributable to Stewart was $1.36 billion as of June 30, 2023, slightly down from $1.37 billion at the end of 2022[13]. - The balance of total equity as of June 30, 2023, was $1.366 billion, a decrease from $1.370 billion at December 31, 2022[15]. - Total debt and stockholders' equity were $445.0 million and $1.37 billion, respectively, as of June 30, 2023[101]. Expenses - Employee costs for Q2 2023 were $182.7 million, a decrease of 13.1% from $210.2 million in Q2 2022[11]. - Employee costs decreased by 13% to $182.7 million in Q2 2023, representing 33.9% of operating revenues[72]. - Consolidated employee costs decreased by $27.6 million, or 13%, in Q2 2023 compared to Q2 2022, and by $62.0 million, or 15%, in the first six months of 2023 compared to the same period in 2022[76]. - Consolidated other operating expenses declined by $32.7 million, or 20%, in Q2 2023 and by $101.7 million, or 29%, in the first six months of 2023 compared to the same periods in 2022[79]. Investment Performance - The company reported a net realized and unrealized loss of $2.9 million in the first half of 2023, compared to a loss of $7.8 million in the same period of 2022[11]. - The company recorded net investment gains on equity securities of $1.988 million for the three months ended June 30, 2023, compared to a loss of $9.366 million in the same period of 2022[35]. - The company reported realized gains of $0.278 million and realized losses of $3.430 million for the three months ended June 30, 2023[33]. - The net unrealized investment gains for equity securities held as of June 30, 2023, were $13.6 million, down from $19.2 million as of December 31, 2022[25]. - The company reported net unrealized investment gains of $1.2 million in the first six months of 2023, compared to net unrealized investment losses of $32.9 million in the same period in 2022[105]. Market Conditions - Single-family mortgage originations decreased by 34% to $450 billion in Q2 2023, with refinancing transactions down by 58% and purchase transactions down by 25%[65]. - Existing home sales in June 2023 were 4.2 million units, a decrease of 19% year-over-year, primarily due to elevated mortgage interest rates[64]. - The average 30-year fixed interest rate increased to 6.5% in Q2 2023, compared to 5.3% in Q2 2022[65]. - Closed orders for refinancing decreased by 53% to 10,674 in Q2 2023, while total closed orders fell by 29% to 60,246[68]. Dividends and Shareholder Returns - The company declared dividends on common stock of $0.90 per share for the six months ended June 30, 2023, totaling $24.983 million[15]. - The company paid total dividends of $24.5 million ($0.90 per common share) in the first six months of 2023, compared to $20.3 million ($0.75 per common share) in the same period in 2022[102]. - Book value per share was $49.82 as of June 30, 2023, down from $50.21 as of December 31, 2022[117].

Stewart Information Services Corporation (NYSE:STC) Q2 2023 Earnings Conference Call July 27, 2023 8:30 AM ET Company Participants Brian Glaze - Principal Accounting Officer, SVP and Controller Frederick Eppinger - CEO David Hisey - CFO Conference Call Participants Bose George - KBW Soham Bhonsle - BTIG John Campbell - Stephens Inc. Geoffrey Dunn - Dowling & Partners Operator Hello and thank you for joining the Stewart Information Services' Second Quarter 2023 Earnings Call. At this time, all participants a ...

Financial Performance - In Q1 2023, the company reported a net loss of $8.2 million ($0.30 loss per diluted share), a significant decline from a net income of $57.9 million ($2.11 per diluted share) in Q1 2022[50]. - The title segment's pretax loss was $0.7 million in Q1 2023, compared to a pretax income of $82.8 million in Q1 2022, reflecting a 101% decline[51]. - Total closed orders in Q1 2023 were the lowest for the company in over 15 years, with a 37% decrease in total opened orders compared to Q1 2022[67]. - Non-commercial domestic revenues fell by $69.9 million, or 32%, due to a 50% decline in residential purchase and refinancing transactions in Q1 2023[66]. - The company anticipates a 26% decline in total mortgage originations for the year 2023 compared to 2022, reflecting ongoing challenges in the housing market[64]. Revenue and Expenses - Title segment operating revenues decreased by $265.1 million, or 37%, to $456.9 million in Q1 2023, primarily due to volume declines in direct title and agency operations[51]. - Real estate solutions segment revenues decreased by $26.8 million, or 30%, in Q1 2023, primarily due to lower transaction volumes amid the current economic environment[55][68]. - Employee costs in the title segment decreased by $49.6 million, or 18%, in Q1 2023, but represented 50.4% of operating revenues compared to 38.8% in Q1 2022[52]. - Consolidated employee costs decreased by $34.4 million, or 17%, in Q1 2023 compared to Q1 2022, with total employee costs as a percentage of total operating revenues rising to 32.8% from 24.3%[72]. - Other operating expenses decreased by $69.0 million, or 36%, in Q1 2023, with total variable costs down by $64.6 million, or 51%[75]. Investment and Cash Flow - Investment income increased by $3.0 million, or 82%, to $6.6 million in Q1 2023, driven by higher interest income from increased interest rates and higher short-term investments[51][69]. - Net cash used by operating activities was $51.1 million in Q1 2023, compared to net cash provided of $34.9 million in Q1 2022[90]. - Cash and investments totaled $891.0 million as of March 31, 2023, with $505.6 million held in the United States[83]. - The company reported net unrealized investment gains of $6.7 million in Q1 2023, primarily due to increases in the fair values of corporate and foreign bond securities investments[97]. Loss Provisions and Claims - Provisions for title losses decreased by $11.5 million, or 40%, in Q1 2023, with the title loss ratio at 3.9% compared to 4.0% in Q1 2022[76]. - Total estimated title losses as of March 31, 2023, were $533.4 million, down from $549.4 million as of December 31, 2022[80]. - Cash claim payments increased by $13.2 million, or 65%, in Q1 2023, primarily due to payments on existing large claims[78]. Debt and Equity - Total debt and stockholders' equity were $445.1 million and $1.36 billion, respectively, as of March 31, 2023[93]. - As of March 31, 2023, the company's debt-to-equity ratio was approximately 33% and the debt-to-capitalization ratio was about 25%[94]. - Total dividends paid in Q1 2023 amounted to $12.3 million ($0.45 per common share), an increase from $10.1 million ($0.38 per common share) in Q1 2022[94]. Tax and Compliance - The effective tax rate increased to 38% in Q1 2023 from 23% in Q1 2022, with a rate of 25% excluding discrete tax adjustments[82]. - The company has no material contractual commitments other than scheduled maturities of debt and operating lease payments[95]. Liquidity and Strategic Outlook - The company has sufficient liquidity and capital resources to meet ongoing operational cash needs, but may consider additional debt or equity funding for strategic goals or acquisitions[95]. - The company expects cash flows from operations to be sufficient to fund operations, including claims payments, but may need to borrow under less favorable terms if necessary[95]. - There have been no material changes in investment strategies or financial instruments held during the quarter ended March 31, 2023[102]. - The company is subject to various risks including changes in mortgage interest rates and the ability to respond to technology changes[102]. - The company holds funds in segregated escrow accounts pending real estate transactions, which are not included on the balance sheet[99].