Financial Performance - GAAP Net Income was $176 million, or $012 per diluted common share[12] - Distributable Earnings reached $267 million, or $022 per fully converted share, including $17 million of realized losses[12] - Distributable Earnings before realized losses amounted to $284 million, or $023 per fully converted share[12] - A Q3 2025 cash dividend of $0355 per share was declared, representing an annualized yield of 100% on fully-converted book value per share[12] Capitalization and Liquidity - Fully-converted book value per share stood at $1429, compared to $1482 in Q2 2025[12] - Net debt to equity ratio was 25x, while recourse net debt to equity was 08x[12] - 77% of financing sources are non-mark-to-market on the core book[12] - Liquidity totaled $522 million, including $117 million in cash and $21 million available for CLO reinvestment/ramp[12] Portfolio and Investments - The Core Portfolio's principal balance decreased by $113 million during the quarter, closing $304 million of new loan commitments and funding $196 million of principal balance[12] - Loan repayments of $275 million were received[12] - Agency originated $22 billion of new loan commitments under programs with Fannie Mae, Freddie Mac, and HUD[12]

Core Insights - Franklin BSP Realty Trust, Inc. reported a GAAP net income of $17.6 million for Q3 2025, a decrease from $24.4 million in Q2 2025, with diluted earnings per share (EPS) of $0.12 compared to $0.19 in the previous quarter [2][3] Financial Performance - Distributable Earnings for Q3 2025 were $26.7 million, or $0.22 per diluted common share, down from $29.0 million, or $0.27 per diluted common share in Q2 2025 [3] - The company declared a common stock cash dividend of $0.355, representing an annualized yield of 10.0% on book value, with a book value of $14.29 per diluted common share [7][11] Portfolio and Investment Activity - The company closed $304.2 million in new loan commitments and funded $195.7 million in principal balance on new and existing loans during Q3 2025 [5][7] - The core portfolio consists of a principal balance of $4.4 billion across 147 loans, with 75.0% collateralized by multifamily properties [7] - The agency segment originated $2.2 billion in new loan commitments under programs with Fannie Mae, Freddie Mac, and HUD, with a servicing portfolio of $47.3 billion [8] Subsequent Events - On October 15, 2025, the company closed a $1.1 billion commercial real estate mortgage securitization transaction [13] - The company has $25.6 million remaining under its $65.0 million share repurchase program, which extends through December 31, 2026 [12] Allowance for Credit Losses - The company recognized a benefit for credit losses of $0.6 million, which included a $1.5 million general allowance benefit and a $1.0 million net benefit allowance for loss sharing [10]

Financial Performance - GAAP Net Income was approximately $1 million, or $0.01 per share[8] - Distributable Earnings were $33 million, or $0.03 per share[8] - Adjusted Distributable Earnings were $212 million, or $016 per share[8] - A dividend of $016 per share was declared and paid for Q3'25, representing a 121% yield on the current share price[8] Portfolio Overview - Total At-Share Assets (Undepreciated) amounted to $35 billion[6] - The total loan portfolio was $24 billion, consisting of 85 total loans with an average loan size of $28 million[6] - The W A Unlevered All-in Yield was 77%[6] - 91% of the loans were less than $50 million in size, based on loan count[6] - The loan portfolio had a W A risk ranking of 31[8] - Total CECL reserve was $127 million, or $098 per share[8] Liquidity & Capitalization - Total liquidity was $280 million, including $87 million of unrestricted cash ($067 per share) and a $165 million fully undrawn corporate revolver[6] - Master Repurchase Facilities Availability was $11 billion[6] - The Debt-to-Equity Ratio was 19x[6]

Financial Data and Key Metrics Changes - Distributable earnings for Q3 2025 were $4.2 million or $0.29 per share, at the high end of guidance [4][12] - A regular quarterly dividend of $0.28 per share was declared, equating to an annualized yield of 11% [4] - The company ended the quarter with $77 million in cash and $310 million in capacity on secured financing facilities [14][15] Business Line Data and Key Metrics Changes - The portfolio consisted of $642 million in floating-rate first mortgage commitments across 22 loans, with a weighted average all-in yield of 8.2% and a weighted average loan-to-value of 67% [5] - The weighted average risk rating at quarter end was 2.9, with all loans current on debt service and no non-accrual balances [6][15] Market Data and Key Metrics Changes - Market sentiment improved following the Federal Reserve's rate cut in September, driving new financing activity [9] - Demand for floating-rate bridge financing remains strong, particularly due to 2021 and 2022 vintage floating-rate multifamily loan maturities [9][10] - The company is currently evaluating over $1 billion of loan opportunities, with a shift towards a higher proportion of acquisition financing [11] Company Strategy and Development Direction - The company aims to deploy capital into opportunities that offer the best relative value in the current environment, focusing on disciplined capital deployment [8] - The strategy includes maintaining strong sponsor relationships and leveraging underwriting and asset management expertise to generate attractive risk-adjusted returns [8] Management's Comments on Operating Environment and Future Outlook - Management noted that competition remains elevated, but they continue to find compelling opportunities that meet return thresholds [8] - Expectations of further rate cuts before year-end are anticipated to enhance borrower engagement and transaction volume [7][9] - The company expects fourth-quarter distributable earnings to be in the range of $0.29-$0.31 per share [13] Other Important Information - The company reported full repayment of two loans totaling $53.8 million during the quarter, with expectations for additional repayments in 2026 [7] - The CECL reserve remains modest at 150 basis points of total loan commitments, unchanged from the previous quarter [15] Q&A Session Summary Question: Expected repayments for the remainder of the year - Management confirmed that the only expected repayment before year-end is $15.3 million, with the majority of repayments scheduled for 2026 [17] Question: Sourcing of new loans and competition - Management indicated that most transactions come from traditional channels like mortgage banking, with a solid reputation helping to win loans [19] Question: Impact of lower SOFR on CECL reserve - Management explained that while lower SOFR could impact the CECL reserve, many factors influence it, and they maintain a conservative approach [23][24] Question: Demand for multifamily equity - Management noted that there is always demand for equity capital, especially with many loan maturities requiring additional equity [25][26] Question: Activity of banks in multifamily debt markets - Management observed that larger banks are active in the multifamily space, while smaller regional banks are more selective [28] Question: Cash balance increase - Management attributed the increase in cash balance to timing of repayments and the expectation of new loan originations [31] Question: NIM compression outlook - Management believes they are at the trough of NIM compression and expects to identify appropriate transactions for better returns [35]

Financial Performance - Seven Hills Realty Trust (SEVN) reported Distributable Earnings of $029 per share for the third quarter of 2025, reaching the high end of their guidance[2],[10] - SEVN declared a quarterly distribution of $028 per common share, totaling approximately $42 million, to shareholders[4] - Net income for the quarter was $34 million, or $023 per diluted share[8] - The quarterly distributable earnings payout ratio was 97%[10] Loan Portfolio and Investment Activity - SEVN closed a $345 million loan secured by a mixed-use property in Manhattan during the quarter[2],[8] - In October 2025, SEVN executed a $373 million loan application for a student housing property[2],[8] - The company received $538 million in repayment proceeds in July, including $295 million from a multifamily property and $243 million from an industrial property[8] - The total loan commitments were $6419 million as of September 30, 2025, with a weighted average coupon rate of 785% and All In Yield of 821%[19] Liquidity and Capitalization - SEVN had $775 million in cash on hand and $3096 million in unused financing capacity under its Secured Financing Facilities[8] - The weighted average coupon on borrowings under the Secured Financing Facilities was S + 215%[8] - The company's debt to equity ratio was 16x[7]

Financial Performance - Distributable Earnings for Q3 2025 were $32.1 million, resulting in a Distributable EPS of $0.25 and an after-tax Distributable ROAE of 8.3%[10] - The company declared a Q3 2025 cash dividend of $0.23 per LADR share, representing an annual dividend yield of 8.4%[10] - Undepreciated book value per share was $13.71, net of a $0.41 per share CECL allowance[10] Balance Sheet & Capital Structure - Total liquidity stood at $879 million, including $830 million of undrawn capacity on the unsecured corporate revolver[8, 10] - The company's capitalization is comprised of 92% non-mark-to-market financing & book equity, with 88% of debt being non-mark-to-market[10, 36] - Unsecured debt accounts for 75% of total financing[8, 10, 36] - The adjusted leverage ratio is 1.7x[8, 10, 36] - The company has $3.9 billion of unencumbered assets, with 88% comprised of cash, first mortgage loans, and investment grade securities[8, 10, 38] Investment Portfolio - Investment assets & unrestricted cash totaled $4.9 billion, including $1.9 billion in first mortgage loans (40%), $960 million in CRE equity (19%), and $1.9 billion in securities (40%)[7, 10] - New loan originations in Q3 2025 reached $511 million, the largest quarterly origination volume in over three years[7, 10] - The company closed an inaugural investment grade corporate bond issuance of $500 million senior unsecured notes due 2030 at a 5.50% coupon[8, 10]

Core Viewpoint - ARMOUR Residential REIT, Inc. reported strong Q3 2025 results, highlighting significant net income and an increase in book value per common share, alongside strategic capital activities and a robust portfolio composition [1][6][22]. Q3 2025 Results - GAAP net income available to common stockholders was $156.3 million, or $1.49 per common share [6]. - Net interest income reached $38.5 million, with distributable earnings available to common stockholders at $75.3 million, translating to $0.72 per common share [6][17]. - Total economic return for Q3 2025 was 7.75%, with a book value per common share of $17.49, reflecting a 3.5% increase from the previous quarter [6][8]. September 30, 2025 Financial Position - Total stockholders' equity increased to $2.1288 billion, up from $1.3614 billion at the end of 2024 [7][11]. - The company's portfolio totaled $18.2 billion, primarily composed of 97.9% Agency mortgage-backed securities [6][9]. - Liquidity, including cash and unencumbered securities, was reported at $1.1 billion [6]. Capital Activities - In August, ARMOUR completed the sale of 18,500,000 shares of common stock for approximately $298.6 million [6]. - The company raised an additional $99.5 million by issuing 5,994,201 shares of common stock through an at-the-market offering program [6]. - A stock repurchase program resulted in the repurchase of 684,102 shares of common stock [6]. Dividends - ARMOUR paid monthly cash dividends of $0.24 per share for Q3 2025, with future dividends declared for October and November 2025 [22][23].

Financial Performance - KREF reported a 3Q 2025 Net Income of $0.12 per diluted share[9] - The company's 3Q 2025 Distributable loss was ($0.03) per diluted share, which includes a realized loss of $14 million, or ($0.22) per diluted share[9] - Book Value per Share (BVPS) was $13.78, including a CECL allowance of $160 million, representing 302 basis points of loan principal balance as of September 30, 2025[9] - Net interest income for 3Q'25 was $25.3 million[10] Portfolio Activity - KREF originated and funded $132 million and $68 million, respectively, relating to two floating-rate loans[9] - The company received $480 million in loan repayments[9] - Multifamily and industrial assets represent 58% of the loan portfolio[9] Liquidity and Capitalization - Available liquidity totaled $933 million, including $204 million in cash and $700 million of undrawn capacity on the corporate revolver[9] - KREF upsized the secured term loan from $549 million to $650 million and reduced the spread by 0.75% to S+2.50%[9] - 77% of secured financing is fully non-mark-to-market, with the remaining balance mark-to-credit only[9] Financing - Diversified financing sources totaled $7.7 billion with $3.1 billion of undrawn capacity[9, 40]

Core Points - Advanced Flower Capital Inc. (AFC) declared a quarterly dividend of $0.15 per share for the quarter ending September 30, 2025, payable on October 15, 2025, to stockholders of record on September 30, 2025 [1] - The third quarter dividend remains consistent with the second quarter dividend, with the Board evaluating Distributable Earnings each quarter due to uncertainties regarding loan repayments [2] Company Overview - Advanced Flower Capital Inc. is a commercial mortgage real estate investment trust (REIT) that specializes in originating, structuring, underwriting, and managing senior secured mortgage loans, particularly for the cannabis industry in legalized states [3] - The company manages loans ranging from $10 million to over $100 million, secured by quality real estate assets and cash flows [3] Distributable Earnings - Distributable Earnings is a non-GAAP financial measure used by the company to evaluate performance, excluding certain transactions and GAAP adjustments [4][6] - The calculation of Distributable Earnings is similar to Core Earnings but includes Incentive Compensation earned during the period [5] - Distributable Earnings is defined as net income excluding stock-based compensation, depreciation, unrealized gains/losses, expected credit losses, and one-time events [6][7] - The company aims to distribute at least 90% of its annual REIT taxable income, with Distributable Earnings serving as a factor in determining dividend levels [7][8]

Core Insights - Advanced Flower Capital Inc. reported a GAAP net loss of $(13.2) million or $(0.60) per basic weighted average common share for Q2 2025, alongside Distributable Earnings of $3.4 million or $0.15 per basic weighted average common share [1][2] Financial Performance - The company experienced a net loss of $(13.2) million for the quarter ended June 30, 2025, compared to a net income of $16.4 million for the same period in 2024 [19] - Distributable Earnings for the quarter were $3.4 million, down from $11.4 million in the same quarter of the previous year [19] Strategic Developments - The company announced its intention to convert from a Mortgage REIT to a Business Development Company (BDC), which would allow it to pursue a wider range of investment opportunities beyond real estate [5][6] - The Board of Directors approved an amendment to the management agreement, expanding the investment mandate to include secured loans to ancillary cannabis companies and middle-market companies outside the cannabis sector [4][6] Market Context - The CEO highlighted a lack of capital entering the cannabis market and the need to selectively evaluate opportunities with established operators in attractive markets [3] - The conversion to a BDC is seen as a significant milestone, enabling the company to lend to ancillary cannabis businesses and diversify its investment portfolio [6][7] Dividend Information - The company paid a regular cash dividend of $0.15 per common share for Q2 2025 to shareholders of record as of June 30, 2025 [8]