02 Feb 2026, 08:36 AM Adjustment of F&O contracts of GAIL due to dividend As per the NSE circular, February 05, 2026, the strikes of GAIL options and the base price of the futures contracts will be revised due to extraordinary dividends.Adjustment for future contracts:All positions in futures contracts of GAIL will be marked-to-market on the last cum-dividend date, i.e. February 04, 2026, based on the daily settlement price of the respective futures contract. Subsequently, open positions will be carried fo ...

Financial Data and Key Metrics Changes - Distributable earnings for Q2 2025 were reported at $0.31 per share, at the high end of the guidance range [5][18] - Total commitments across first mortgage loans stood at $665 million, with a weighted average coupon of SOFR plus 3.64% and an all-in yield of 8.37% [6][15] - The quarterly dividend was reduced to $0.28 per share, reflecting a 20% decrease from the previous level [7][17] Business Line Data and Key Metrics Changes - The company originated two new first mortgage loans totaling $46 million during the quarter [6] - All loans in the portfolio remained current on debt service, with a weighted average risk rating of 2.9, unchanged from the previous quarter [6][17] - The company anticipates positive year-over-year portfolio growth, expecting to end 2025 with approximately $700 million in outstanding commitments [9][18] Market Data and Key Metrics Changes - Transaction activity slowed due to tariff announcements and global trade negotiations, causing uncertainty in the market [11] - Despite macro headwinds, the company averaged over $1 billion in monthly loan registrations, indicating strong demand for flexible, floating-rate debt solutions [11][12] - Competition among lenders remains elevated, particularly in the multifamily sector, with demand for securitized products supporting the debt markets [12][13] Company Strategy and Development Direction - The company is focused on smaller, middle-market transactions to earn more attractive yields by providing creative financing terms [13] - The strategy includes being selective in capital deployment, particularly in sectors where the company has a competitive advantage, such as industrial and medical office sectors [13] - The company is currently in diligence on a $34 million loan for a mixed-use retail and medical office property, indicating ongoing investment activity [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current environment, emphasizing strong sponsor relationships and liquidity [10][15] - The company expects to see two to three additional loans totaling approximately $100 million repaid in the latter half of the year [9] - Management anticipates that if the Fed cuts interest rates, there will be a meaningful increase in acquisition activity [13][39] Other Important Information - The CECL reserve increased to 150 basis points of total loan commitments, reflecting macroeconomic factors and loan extensions [15] - The company has no collateral-dependent loans or loans with specific reserves, indicating a strong credit performance [15][17] Q&A Session Summary Question: Expected year-end portfolio size and originations - Management indicated an expected year-end portfolio size of around $700 million, with originations for the second half potentially exceeding $200 million, dependent on repayments [20][21] Question: Stability of the new dividend level - Management expressed confidence that the new dividend level of $0.28 per share is sustainable for at least the next twelve months, contingent on loan repayments [24][25] Question: Attractive opportunities and competitive environment - Management noted significant activity in the multifamily and industrial sectors, with many borrowers needing additional time to optimize properties before refinancing or selling [27][28] Question: Leverage expectations for the second half of the year - Management expects leverage to remain consistent at 1.6 times debt to equity until office loans recycle out of the system [33] Question: NIM compression factors - Management explained that NIM compression is primarily driven by aggressive pricing in the multifamily sector, influenced by the CRE CLO market [34][35] Question: Impact of potential Fed cuts on NIM - Management indicated that Fed cuts would likely lower overall borrowing costs and stimulate transaction activity in the market [38][39]