Financial Data and Key Metrics Changes - For Q3 2025, the company reported a net income of $1.12 per diluted share, an increase from $0.74 per diluted share in Q3 2024, attributed to unrealized gains on preferred stock and stock warrant investments [4] - Earnings available for distribution decreased to $0.51 per diluted share in Q3 2025 from $0.75 per diluted share in Q3 2024 [4] - Cash available for distribution also declined to $0.53 per diluted share in Q3 2025 from $0.67 per diluted share in Q3 2024 [5] - The company declared a regular dividend of $0.50 per share for Q3 2025, which was 1.06 times covered by cash available for distribution [5] - Book value per share increased by 8% from Q2 2025 to $18.79 per diluted share, primarily due to unrealized gains on preferred stock investments and stock warrants [5] Business Line Data and Key Metrics Changes - The portfolio consists of 88 investments with a total outstanding balance of $1.1 billion, allocated as follows: 47.3% multifamily, 33.9% life sciences, 15.9% single-family rental, 1.8% storage, and 1.1% marina [6] - The fixed income portfolio is allocated as follows: 27% CMBS B pieces, 26.5% mezzanine loans, 18.6% preferred equity investments, 12.4% revolving credit facilities, 10% senior loans, 4.2% IO strips, and 1.3% promissory notes [6] Market Data and Key Metrics Changes - The assets collateralizing investments are geographically allocated with 28.1% in Massachusetts, 15.5% in Texas, 8% in Georgia, and smaller percentages in California, Maryland, and Florida, reflecting a preference for Sunbelt markets [7] - The collateral on the portfolio is 87.4% stabilized, with a loan-to-value ratio of 54.9% and a weighted average debt service coverage ratio (DSCR) of 1.41 times [8] Company Strategy and Development Direction - The company is launching a Series C Preferred offering of $200 million at an 8% coupon, continuing to deploy capital at spreads of 400 basis points plus the cost of this capital [9] - The company is focused on maintaining a low leverage profile, which allows for various capital options to pursue growth opportunities [18] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the rental market outlook, anticipating positive revenue growth in 2026 for the first time in several years [12] - The life sciences sector is showing signs of stabilization with a significant lease signed with Lila Sciences, which is expected to drive leasing momentum [17][22] - The multifamily sector is expected to see new lease growth inflecting in major markets, with optimism for transaction volumes to increase dramatically in 2026 [36] Other Important Information - The company funded $42.5 million on a life sciences preferred and $6.5 million on a loan with a monthly coupon of SOFR +900 basis points during the quarter [5] - The company sold a multifamily property for $60 million, resulting in a $3.7 million gain [6] Q&A Session Summary Question: Updated view on the life sciences sector - Management noted that distress in the life sciences sector primarily affects projects capitalized shortly after COVID, while their investments are focused on first-to-fill assets in strong markets [21][22] Question: Thoughts on multifamily supply and bridge lending - Management acknowledged softness in the bridge lending space due to floating-rate loans originated in 2021-2022 but expressed optimism for new lease growth in constrained supply markets [35][36]