Financial Data and Key Metrics Changes - GAAP net loss allocable to common shares in Q4 2025 was $3 million, or $0.43 per share, which included a net interest income of $10.7 million, an increase of $2.3 million from the prior quarter [11] - The total allowance for credit losses at December 31 was $20.4 million, representing 1.11% of the $1.8 billion loan portfolio at par [12] - GAAP book value per share increased to $30.01 on December 31 from $29.63 on September 30 [13] Business Line Data and Key Metrics Changes - In Q4 2025, the company closed new commitments of $571 million, resulting in a net increase to the loan portfolio of $443.8 million [5] - The weighted average spread on newly originated loans was 2.83%, with the portfolio's weighted average spread now at 3.35% over one-month term SOFR rates [6] - The company ended the quarter with $1.8 billion of commercial real estate loans across 53 individual investments, with a weighted average risk rating decreasing from 3.0 to 2.7 [7] Market Data and Key Metrics Changes - The company reported a decrease in current expected credit losses (CECL) reserves of $1.3 million compared to a decrease of $4 million in the previous quarter, driven by loan payoffs and improvements in credit risk [12] - The company expects net growth in the portfolio of $500 million to $700 million in 2026, indicating a strong outlook for deployment [27] Company Strategy and Development Direction - The company remains focused on investing in high-quality commercial real estate loans and actively managing the portfolio to grow earnings for shareholders [5] - The management team is optimistic about the opportunities in the asset class and competitive landscape, aiming to resume paying dividends to common shareholders [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued execution of their plan to drive shareholder value, highlighting strong loan originations and improved credit quality [15] - The company anticipates a healthy repayment activity in 2026, projecting about $500 million of repayments, which will help reduce older vintage assets in the portfolio [41] Other Important Information - The company sold an REO asset in Austin, Texas, resulting in an earnings available for distribution (EAD) gain of $1.3 million [9] - The company has incurred minimal realized losses on almost $8 billion of invested capital since inception [9] Q&A Session Summary Question: Could you touch a little bit more on the loans that you guys completed this quarter? - The portfolio was mostly multi-family, with average loan sizes of $40 million to $50 million and spreads ranging between 250 and 325 [18] Question: How long is the reinvestment period? - The reinvestment period is 30 months [19] Question: What is the plan for equity investments? - One smaller land deal is under LOI for sale, and another asset is currently on the market [20][21] Question: Has there been any change in spreads for year-to-date originations? - In 2026, originations have mostly been multifamily, with spreads around 2.83%, and there is an expectation of a mix shift to other asset classes [37][39] Question: What is the comfort level regarding leverage to common equity? - The company is comfortable with leverage inside of four turns and does not expect to exceed that [43][44]