Core Viewpoint - The adjustment of GAIL's futures and options contracts is due to extraordinary dividends, impacting strike prices and settlement procedures starting February 5, 2026 [1]. Adjustment for Futures Contracts - All futures positions will be marked-to-market on the last cum-dividend date, February 4, 2026, based on the daily settlement price [2]. - Open positions will be carried forward at the daily settlement price minus ₹5, reflecting the dividend amount [2]. - Normal daily mark-to-market settlement will resume on February 5, 2026, the ex-dividend date [2]. Example of Futures Contracts - If 1 lot (3150 quantities) of GAIL February futures is bought at ₹162 on February 4, 2026, and the daily settlement price is ₹165, a mark-to-market profit of ₹3 per share is realized [3]. - On February 5, 2026, the position will be carried forward at ₹160 (i.e., ₹165 - ₹5), and if the closing price is ₹163, a mark-to-market profit of ₹3 per share will still be achieved [3]. Adjustment for Options Contracts - The full dividend value of ₹5 will be deducted from all cum-dividend strike prices on the ex-dividend date [4]. - Existing positions in strike prices will continue in the corresponding new adjusted strike prices [4]. Example of Options Contracts - The strike price of the ₹140 Call Option will be reduced to ₹135 on February 5, 2026, with positions continuing in the ₹135 Call Option [5]. - The lot size of the F&O contracts will remain unchanged [5]. - Shareholders holding GAIL equity shares as of February 5, 2026, will receive the dividend credited to their primary bank account within 30 to 45 days from the record date [5].

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]