Financial Data and Key Metrics Changes - The company reported earnings available for distribution of $2.35 per diluted share for 2025, representing a 12% year-over-year growth [13] - GAAP net income for Q4 was $53 million, or $0.09 per diluted share, with a 3% return on equity [14] - For the full year, GAAP net income was $567 million, with a return on equity of 8% [14] - Book value at the end of 2025 was reported at $7 billion, or $12.60 per common share, an increase from the previous year [15] Business Line Data and Key Metrics Changes - The Genesis business produced just under $5 billion in loans, with earnings up 250% since its acquisition in 2022 [8] - Newrez, the mortgage company, saw year-over-year earnings growth of 13% [8] - Sculptor's AUM grew from $34 billion to $38 billion in 2025, with gross inflows of $5.8 billion [17][26] Market Data and Key Metrics Changes - The 10-year treasury yield increased to approximately 4.30%, while mortgage rates have slightly decreased [16] - In San Francisco, leasing activity increased by 330% year-over-year, with the market showing signs of recovery [37] - The New York core portfolio's leased occupancy was 92.8%, up 780 basis points year-over-year [34] Company Strategy and Development Direction - The company aims to grow prudently by creating alpha and results for clients, focusing on performance-driven asset management [6] - The acquisition of Paramount is seen as a transformational move into the commercial real estate space, with a focus on Class A office buildings [30][32] - Investments in technology and marketing are prioritized to enhance customer experience and brand [9] Management's Comments on Operating Environment and Future Outlook - Management noted significant geopolitical risks but expressed optimism about the mortgage market's recovery and the potential for increased origination gains [21][22] - The company expects a 10% increase in production for 2026, aligning with market estimates [59] - Management emphasized the importance of maintaining pricing discipline and not chasing market share in a competitive environment [60][65] Other Important Information - The company has made significant investments in technology partnerships, including with Valon Technologies and HomeVision, to enhance operational efficiency [46][47] - The firm has a strong focus on maintaining relationships with tenants and brokers to secure renewals and fill vacancies in its real estate portfolio [39] Q&A Session Summary Question: Can you detail the funded volumes, particularly the refi percentage? - The increase in refi volume was driven by market conditions, with a notable rally in late summer and September leading to higher production [58] Question: What are the expectations for overall volumes in Q1? - The forecast for 2026 is expected to be up around 10%, with continued improvements in service and tools for homeowners [59] Question: Can you discuss competition in the mortgage space? - The mortgage business remains competitive, with some players being aggressive, but the company focuses on maintaining margins and not engaging in irrational pricing [63][65] Question: How did the retail channel perform in terms of gain on sale margin? - The improvement in margins was influenced by a mix shift and timing of MSR recapture, with a focus on maintaining overall margins [70] Question: How did wholesale volumes perform despite competition? - The company maintained a disciplined approach to margins while focusing on non-agency production, which has been a key growth area [72]