Financial Data and Key Metrics Changes - The company reported a 4% increase in total service revenue to $39.7 million compared to Q3 2024, driven by growth in various business segments [4][5] - GAAP earnings per share and cash flow from operations improved, with a pre-tax loss of $1.7 million, an improvement of $6.8 million from the previous year [5][11] - Adjusted EBITDA was flat at $3.6 million, with a slight increase in adjusted EBITDA for the service earning real estate segment to $10 million, up 1% from the previous year [5][8] Business Line Data and Key Metrics Changes - The service earning real estate segment generated $31.2 million in revenue, a 3% increase from Q3 2024, while adjusted EBITDA margins declined to 32.1% due to a revenue mix shift [7][8] - The origination segment saw a 9% increase in service revenue to $8.5 million, but adjusted EBITDA remained flat at $900,000, with margins declining to 10.3% [9][10] Market Data and Key Metrics Changes - The residential mortgage default market showed 90-plus-day mortgage delinquency rates at 1.3%, with foreclosure starts increasing by 19% and sales by 10% year-over-year [11][12] - The real estate market is perceived to be weakening, indicated by higher inventory and extended sales timelines, affecting the percentage of homes sold at foreclosure auctions [12] Company Strategy and Development Direction - The company is focusing on diversifying its customer base and growing businesses with strong growth potential, such as renovation and risk management services [5][6] - There is an emphasis on maintaining cost discipline while pursuing growth opportunities in a low delinquency environment, positioning the company for potential revenue increases if market conditions change [13][14] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the third-quarter performance and the potential for continued growth, highlighting a strong sales pipeline and new business wins [13][17] - The company is well-positioned to benefit from increased loan delinquencies and foreclosure activity, which could enhance revenue and adjusted EBITDA in countercyclical businesses [14] Other Important Information - The cooperative brokerage agreement with Rhythm expired on August 31, but the company continues to manage REO and receive referrals [9] - The company won four new customers for the Equator platform, which are expected to generate additional revenue as they load more assets [15] Q&A Session Summary Question: Are the new customer wins for the Equator platform expected to translate to more inventory on Hubzu Marketplace? - Management confirmed that three of the four new customers are live and loading properties, which should generate revenue and facilitate cross-selling with Hubzu Marketplace [15]

Financial Data and Key Metrics Changes - The company reported a GAAP loss from continuing operations of $0.31 per common share and distributable earnings loss of $0.14 per common share, with a loss of $0.10 per share excluding realized losses on asset sales [17][20] - Net interest income increased to $17 million in the quarter, attributed to a full quarter of interest income from the UDF transaction and lower interest expense [17][18] - The book value per share was $10.44 at quarter end, down $0.17 from March 31, primarily due to the dividend and coverage shortfall [21] Business Line Data and Key Metrics Changes - In the core portfolio, the interest yield was 8.1% and cash yield was 6.1%, while the interest yield in the non-core portfolio was 2.4% [18] - The CRE loan portfolio totaled $6.1 billion, segmented into a $5.4 billion core portfolio and a $695 million non-core portfolio [9][10] - The non-core portfolio was reduced by 52% to $333 million carrying value, with a quarterly yield of negative 10.7% [12] Market Data and Key Metrics Changes - The company experienced a decrease in SBA origination volume to $216 million due to capital constraints while awaiting approval for increased warehouse capacity [13] - The company anticipates a return of SBA seven lending volumes to over $325 million per quarter and entry into the USDA market at scale [15] Company Strategy and Development Direction - The company is focusing on repositioning its balance sheet by evaluating loans for potential asset sales to improve net interest margin [4] - The strategy includes stabilizing the Portland mixed-use asset and enhancing liquidity to support loan origination [8][15] - The company plans to reenter the origination market in the third quarter, focusing on high-quality multifamily bridge loans [11] Management's Comments on Operating Environment and Future Outlook - Management expects modest earnings growth in 2025 from increased originations, stabilization of the Portland asset, and a return to SBA lending volumes [15] - The company aims to maintain its current dividend level until its earnings profile warrants an increase [16] Other Important Information - The company completed the sale of $494 million of legacy multifamily bridge assets, generating net proceeds of $85 million [4][5] - The company took ownership of a mixed-use asset in Portland, Oregon, with a net cash outlay of $10 million [6] Q&A Session Summary Question: Will the company still expect distributable earnings losses in the near term? - Management indicated that the origination team is gearing up for new vintage multifamily bridge loans, which may take about 120 days to ramp up [26] Question: Can you describe the type of buyer for the bulk sale of legacy bridge loans? - The buyer is a multifamily operator with significant assets under management, and the sale price was around 77% of the unpaid principal balance [33][34] Question: What will be the driver for the expected increase in SBA volumes? - The company anticipates a ramp in demand for small business loans, particularly in M&A, and is awaiting approval for increased warehouse lines [40][41] Question: Why not eliminate the dividend and reallocate that capital toward debt repayment? - Management stated that the dividend is part of their repositioning strategy, and they are evaluating the performance of the core portfolio in relation to the dividend [63][65] Question: How much capital will need to be put in across the three categories for the Portland asset? - The company is currently assessing the budget for tenant improvements and marketing, with costs expected to be around $150 to $200 per square foot for office tenants [59][60]

Group 1 - India will push for the Financial Action Task Force to place Pakistan on the grey list in the next meeting [1] - India will oppose the World Bank's upcoming financial support to Pakistan [1] - India claims that every time IMF loans are disbursed, there is a surge in Pakistan's arms procurement [1]