Financial Data and Key Metrics Changes - The company reported third quarter GAAP net income attributable to common stockholders of $1 million or $0.01 per share, distributable earnings of $3.3 million or $0.03 per share, and adjusted distributable earnings of $21.2 million or $0.16 per share [3][16] - Current liquidity stands at $280 million, with $87 million in unrestricted cash [4][18] - GAAP net book value decreased to $7.53 per share from $7.65 in the previous quarter, while undepreciated book value decreased to $8.68 from $8.75 per share [17] Business Line Data and Key Metrics Changes - The loan portfolio currently stands at $2.4 billion across 85 loans, with an average loan balance of $28 million [11] - The watchlist portion of the loan portfolio is 8%, comprised of five loans totaling $182 million, down from $411 million at the start of 2024 [11][8] - The company achieved net positive loan originations for the second consecutive quarter, originating 10 loans totaling $224 million during the third quarter [6][10] Market Data and Key Metrics Changes - The commercial real estate markets are showing continued improvements, with tightening credit and lending spreads contributing to increased loan inquiries [5][6] - The CMBS and CLO markets remain highly active, with solid new issuance growth [6] Company Strategy and Development Direction - The company aims to grow its loan book to approximately $3.5 billion, with a focus on resolving watchlist loans and increasing loan originations [8][9] - The strategy includes preparing for a new CLO securitization and generating liquidity through the sale of real estate owned assets [8][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the trajectory of the business, citing improvements in the commercial real estate market and a favorable interest rate environment [5][6] - The company anticipates that the coming quarters will be among the most productive, driven by new loan originations and progress on watchlist loans [9][15] Other Important Information - The company recorded a GAAP impairment of $2.5 million related to a multi-tenanted office equity property, which had no impact on undepreciated book value [16] - The company is actively marketing two real estate owned office properties for sale [12][39] Q&A Session Summary Question: Update on liquidity position post-quarter date originations - Management indicated liquidity is around $100 million in cash, with future originations expected to come from asset resolutions [20] Question: Pace of Q4 originations - Management expects a similarly active pace for Q4 originations, with a growing pipeline and increased loan inquiries [21] Question: Thoughts on net lease portfolio and potential growth - Management is satisfied with current assets and has not explored entering the triple net market, focusing instead on existing assets [24] Question: Impact of potential Fed rate cuts on demand - Management noted that the market sentiment is improving, with a dovish Fed contributing to increased transaction sales volume [25][26] Question: Growth of loan book and REO impact - Management believes they are at a point to grow the loan book, with increased momentum in loan originations [30][31] Question: Contribution of San Jose Hotel to distributable earnings - Management anticipates a sub-$10 million NOI for the hotel, with significant events planned for 2026 [32][34] Question: Details on new CLO issuance - Management could not provide specifics on the size and timing of the expected CLO issuance [38] Question: Second office property for sale - The second office property for sale is one of the Long Island City properties [39]