Core Viewpoint - The acquisition of Newpoint by FBRT is a strategic move to enhance income stability and long-term growth in book value per share [3]. Company Overview - FBRT has successfully closed the acquisition of Newpoint on July 1, which is a leading vertically integrated commercial real estate finance company [3]. - Newpoint specializes in loan origination, servicing, asset management, and offers a suite of agency products [3]. - Newpoint is one of only 19 multifamily originators in the U.S. approved by all three Government-Sponsored Enterprises (GSEs): Fannie Mae, Freddie Mac, and FHA/HUD [3]. Strategic Implications - The acquisition adds a scaled agency origination and servicing platform to FBRT, which is expected to enhance income stability [3]. - This move creates a pathway for long-term growth in book value per share for FBRT [3].

Core Insights - The acquisition of Newpoint by FBRT was completed on July 1, enhancing FBRT's capabilities in commercial real estate finance [3] - Newpoint is recognized as a leading vertically integrated company in the sector, providing various services including loan origination and asset management [3] - This acquisition positions FBRT to improve income stability and supports long-term growth in book value per share [3] Company Overview - FBRT's leadership includes CEO Rich Byrne, President Mike Comparato, and CFO Jerry Baglien, who participated in the recent webinar [1] - The company aims to leverage the acquisition to strengthen its agency origination and servicing platform [3] Industry Context - Newpoint is one of only 19 multifamily originators in the U.S. approved by all three Government-Sponsored Enterprises (GSEs): Fannie Mae, Freddie Mac, and FHA/HUD [3] - The acquisition reflects a strategic move within the commercial real estate finance industry to consolidate services and enhance operational capabilities [3]

Core Points - Ladder Capital Corp announced a third quarter 2025 dividend of $0.23 per share of Class A common stock [1] - The cash dividend is scheduled to be paid on October 15, 2025, to stockholders of record as of September 30, 2025 [1] - Ladder is a publicly listed, investment grade-rated commercial real estate finance company with a diversified nationwide platform [1]

Financial Performance - GAAP Net Loss attributable to common stockholders was $(170) million, or $(035) per basic common share[8, 13] - Distributable Earnings Loss was $(453) million, or $(094) per basic common share[7, 8] - Distributable Earnings Loss Before Realized Gains and Losses was $(20) million, or $(004) per basic common share[7, 8] - Book Value per Common Share was $799[7, 13] Portfolio Overview - Total Loan Portfolio Commitments amounted to $19 billion across 47 loan investments[7, 8] - The portfolio is comprised of 99% senior loans[7, 25] - Weighted Average Stabilized LTV at Origination was 647%[7, 25] - Total CECL reserve was $1551 million, representing 81% of total loan portfolio commitments[7, 8] Capitalization and Liquidity - The company had $851 million in unrestricted cash[7, 8] - Total Leverage Ratio was 21x[7, 8] - The company repurchased 125 million shares at an average price of $248 per share, totaling $31 million[8]

Group 1: Stock Recommendations - New York Mortgage Trust (NYMT) is a real estate investment trust focused on residential mortgage securities and has seen a 4.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - TPG RE Finance Trust (TRTX) is a commercial real estate finance company that has experienced a 2.1% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - First Commonwealth Financial (FCF) operates two chartered banks and has witnessed a 7.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] Group 2: Dividend Yields - New York Mortgage Trust (NYMT) has a dividend yield of 12.2%, surpassing the industry average of 11.4% [2] - TPG RE Finance Trust (TRTX) has a dividend yield of 11.1%, compared to the industry average of 0.0% [3] - First Commonwealth Financial (FCF) offers a dividend yield of 3.3%, which is higher than the industry average of 2.7% [4]

Financial Highlights - New investment activity reached over $1 billion[7] - Investment assets and unrestricted cash totaled $4.7 billion, including $1.6 billion in senior secured first mortgage loans[8] - Total liquidity was approximately $1 billion, which included an $850 million undrawn unsecured corporate revolver[8] - The company issued $500 million in inaugural investment grade unsecured bonds[8] Portfolio Composition - First mortgage loans accounted for $1.6 billion, or 35%, of the total investment portfolio[11] - CRE equity represented $936 million, or 20%, of the portfolio[11] - Securities comprised $2 billion, or 42%, of the portfolio[11] - 82% of the company's assets are senior secured and/or investment grade rated[11] Key Metrics - Distributable earnings were $30.9 million, resulting in distributable EPS of $0.23 and a distributable ROAE (after-tax) of 7.7%[11] - The company declared a Q2 2025 cash dividend of $0.23 per share, representing an 8.3% annual dividend yield[11] - Unencumbered assets totaled $3.7 billion, which is 83% of total assets[11] - The adjusted leverage ratio was 1.6x, or 1.5x net of cash[11] - 74% of total debt was comprised of unsecured corporate bonds[11]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported a GAAP net loss of approximately $1.7 million or $0.03 per share, and distributable earnings of approximately $4 million or $0.08 per share [4][16] - Interest income decreased to $7.7 million from $9.4 million in Q4 2024, primarily due to declines in the SOFR benchmark rate and deleveraging of secured financings [16] - Total operating expenses were largely flat at $2.6 million in Q1 compared to $2.8 million in Q4 [17] - The total equity at the end of the quarter was approximately $232 million, with a book value of common stock at approximately $172 million or $3.29 per share, down from $3.40 [20] Business Line Data and Key Metrics Changes - The portfolio consisted of 61 floating rate note loans with an aggregate unpaid principal balance of approximately $1 billion, with 92% collateralized by multifamily properties [20] - The weighted average note floating rate was SOFR plus 355 basis points, with a weighted average remaining term of approximately 40 months [21] - The number of loans risk rated at three or better decreased to 60% from 64% in the prior quarter, while the weighted average risk rating remained flat at 3.5 [21] Market Data and Key Metrics Changes - The multifamily sector showed resilience despite low rent growth, with robust occupancy rates and a deceleration in multifamily construction starts due to financing scarcity and increased costs [9][10] - The company noted a favorable environment for multifamily investments due to steady demand and limited new supply, despite challenges faced by potential homebuyers [10] Company Strategy and Development Direction - The company is focused on active asset management, monitoring borrower performance, and market trends to maximize recovery values [11] - A proactive approach is taken to manage liquidity, with a considerable amount of unrestricted cash held on the balance sheet [12] - The company is exploring options for new secured financing to enhance flexibility and access the CRE CLO market [13] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about investment opportunities in 2025, despite ongoing economic uncertainties [9] - The company anticipates potential resolutions for problem loans in the next three to six months, depending on market conditions and sponsor relationships [41][43] - Management acknowledged the challenges faced by sponsors and the importance of reinvestment in assets to prevent deterioration [47] Other Important Information - The company executed several successful loan modifications and extensions to preserve value and enhance downside protection [11] - Specific reserves for credit losses increased to $11.1 million, reflecting a net increase of $7.3 million from the prior quarter [18] Q&A Session Summary Question: Can you characterize the pipeline today and the level of net originations needed to maintain current dividend capacity? - Management indicated confidence in origination levels, stating that there are assets available for deployment when capacity allows, despite recent market volatility [30][31] Question: Are there alternative financing options being considered before the next CLO? - Management confirmed that opportunities exist in both bank and private credit markets, which may provide more flexible interim financing options [36][38] Question: What is the outlook for problem loans under asset management? - Management sees potential for resolutions in the near term, emphasizing the importance of sponsor relationships and the need for reinvestment in assets [40][41] Question: Is the rise in nonaccruals primarily a cash flow issue for sponsors? - Management acknowledged that cash flow issues are prevalent, affecting both asset performance and sponsor investment in properties [47] Question: How do current market conditions compare to previous assessments of strong fundamentals? - Management maintained that while overall market conditions remain strong, specific assets have faced challenges due to sponsor performance and investment decisions [49][50]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported a GAAP net loss of approximately $1.7 million or $0.03 per share, and distributable earnings of approximately $4 million or $0.08 per share [4][15] - Interest income decreased to $7.7 million from $9.4 million in Q4 2024, primarily due to declines in the SOFR benchmark rate and deleveraging of secured financings [15] - Total operating expenses were largely flat at $2.6 million in Q1 compared to $2.8 million in Q4 [16] - The total book value of common stock decreased to approximately $172 million or $3.29 per share from $3.40 as of December 31, driven by an increase in the allowance for credit losses [20] Business Line Data and Key Metrics Changes - The portfolio consisted of 61 floating rate note loans with an aggregate unpaid principal balance of approximately $1 billion, with 92% collateralized by multifamily properties [21] - The weighted average note floating rate was SOFR plus 355 basis points, with a weighted average risk rating remaining flat at 3.5 [22] Market Data and Key Metrics Changes - The multifamily sector showed resilience despite low rent growth, with robust occupancy rates and a deceleration in multifamily construction starts due to financing scarcity and increased construction costs [10] - The company noted a favorable environment for multifamily investments due to steady demand and limited new supply [10] Company Strategy and Development Direction - The company is focused on active asset management, monitoring borrower performance, and market trends to maximize recovery values [11] - A proactive approach is taken to manage liquidity, holding a considerable amount of unrestricted cash rather than deploying it into new loan assets [12] - The company is exploring options for new secured financing to enhance flexibility and access the CRE CLO market [13] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about investment opportunities in 2025, despite ongoing economic uncertainties [9] - The company anticipates potential volatility in the market but remains committed to preserving capital and maximizing risk-adjusted returns [11] Other Important Information - The company recognized a net increase in the allowance for credit losses of $5.7 million, with seven loans risk rated five, representing approximately 11% of the unpaid principal balance [17][22] - The unrestricted cash balance at the end of Q1 was $64 million, with effective leverage from securitizations at 77% [19] Q&A Session Summary Question: Can you characterize the pipeline today and the level of net originations needed to maintain current dividend capacity? - Management indicated that there are assets available for deployment and expressed confidence in maintaining origination levels despite recent market volatility [31][32] Question: Are there other financing options being considered before the next CLO? - Management confirmed that they are exploring both bank and private credit options for more flexible interim financing [36][37] Question: What is the outlook for problem loans and potential resolutions? - Management sees the potential for resolutions in the next three to six months, emphasizing the importance of sponsor relationships and the need for reinvestment in assets [40][41] Question: Is the rise in nonaccruals a cash flow issue for sponsors? - Management acknowledged that cash flow issues are prevalent, affecting both asset performance and sponsor investment [48][49] Question: How does the current market condition compare to previous strong fundamentals? - Management noted that while the overall market remains strong, some sponsors have not followed through on their commitments, leading to asset deterioration [50][51]

Financial Performance - GAAP Net Loss attributable to common stockholders was $(10.6) million, or $(0.22) per basic common share[8, 13] - Distributable Earnings Loss was $(27.7) million, or $(0.57) per basic common share[7, 8] - Distributable Earnings Loss Before Realized Gains and Losses was $(3.0) million, or $(0.06) per basic common share[7, 8] - Common stock dividend was $0.05 per share[7, 10] - Book Value per Common Share was $8.24[7, 13] Portfolio Overview - Total Loan Portfolio Commitments amounted to $2.0 billion across 50 loan investments[7, 8] - The unpaid principal balance of the loan portfolio was $1.9 billion[26, 37] - The weighted average stabilized LTV at origination was 64.5%[7, 25, 26] - The total CECL reserve was $180.2 million, representing 8.8% of total loan portfolio commitments[7, 8] - Net loan portfolio activity resulted in a decrease of $(161.4) million in unpaid principal balance[8, 24] Capitalization and Liquidity - The company had $85.7 million in unrestricted cash[7, 8, 10] - The total leverage ratio was 2.2x[7, 8, 34] - $2.1 billion financing capacity with $1.4 billion outstanding[7]

Financial Data and Key Metrics Changes - Apollo Commercial Real Estate Finance reported distributable earnings of $33 million or $0.24 per share for Q1 2025, with GAAP net income of $23 million or $0.16 per diluted share, providing 96% coverage of the quarterly dividends [15][16] - The loan portfolio ended the quarter with a carrying value of $7.7 billion, up from $7.1 billion at year-end, with a weighted average yield of 7.9% [17][19] - The debt-to-equity ratio at quarter end was 3.5x, up from 3.2x at year-end, reflecting the recirculation of proceeds from repayments into new leveraged deals [22] Business Line Data and Key Metrics Changes - The first quarter saw continued velocity in loan originations, with $650 million of new loans committed, primarily secured by residential properties and a data center construction loan [9][10] - Loan repayments totaled $93 million during the quarter, which were quickly redeployed through new origination post-quarter end, amounting to $709 million in total commitments on new loans in Q2 to date [18][20] Market Data and Key Metrics Changes - The real estate market is experiencing modest spread widening and a more cautious tone, with a broad recession presenting the greatest risk to ongoing recovery [7][8] - Limited new supply due to tariff effects driving up construction costs is expected to positively impact long-term real estate values and fundamentals [8] Company Strategy and Development Direction - The company is focused on proactive asset management and executing plans on focus loans to maximize value recovery and convert capital into higher return opportunities [13] - The strategy includes financing developers of data centers with strong credit tenants and long-term leases, reflecting a commitment to sectors with strong secular tailwinds [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the loan portfolio's ability to produce distributable earnings that support the current quarterly dividend run rate, despite Q1 earnings being slightly below this rate [14][16] - The company anticipates a recovery in distributable earnings for the remaining quarters of 2025, driven by growth in the loan portfolio and recirculation of underperforming capital [16] Other Important Information - The company has defined pathways for each focus asset and is actively pursuing resolutions, with a focus on selling the Liberty Center asset in the latter part of the year [28] - The company ended the quarter with $218 million of total liquidity, comprised of cash on hand and committed undrawn credit capacity [22] Q&A Session Summary Question: Concerns about realizing losses on non-accruing assets - Management indicated that specific CECL allowances are tied to two assets, with plans to sell Liberty Center later this year and positive sales momentum for 111 West 57th Street [26][28] Question: Market impacts on loan repayments and new money deployment - Management noted that the market remains robust, with no anticipated slowdown in transactions despite recent volatility [34][36] Question: Updates on specific assets and portfolio growth - Management provided updates on various assets, indicating positive leasing activity and potential recapitalization strategies for the Manhattan office [56][63] Question: Exposure in the U.K. and Europe - Management explained that the company's European operations were established through relationships with U.S. sponsors and have developed a strong presence in the market over the past decade [87][90]