Core Viewpoint - TPG RE Finance Trust reported mixed financial results for Q2 2025, with distributable earnings per share exceeding analyst expectations, but total distributable earnings declining, indicating a need for strategic focus on loan origination and portfolio management [1][10]. Business Overview and Strategic Focus - TPG RE Finance Trust is a real estate investment trust (REIT) that specializes in providing commercial first mortgage loans to institutional borrowers, focusing on high-quality properties across the U.S. [2] - The company is managed by TPG Real Estate, which enhances its access to institutional capital and market expertise [2]. - Key priorities include maintaining REIT compliance, optimizing the floating rate loan portfolio, and disciplined loan origination [3]. Quarterly Performance: Portfolio Growth, Credit, and Capital Actions - In Q2 2025, the company originated seven new first mortgage loans totaling $695.6 million, with a weighted average spread of 2.86% over Term SOFR and a loan-to-value (LTV) ratio of 67.6% [4]. - The company received $172.3 million in repayments from three loans across various property types, and committed to additional loans totaling $112.3 million post-quarter-end, indicating a healthy deal pipeline [5]. - Asset quality remained stable with a weighted average risk rating of 3.0, and reserves increased to $68.8 million, representing 1.76% of loan commitments [6]. Capital Management and Liquidity - The company executed two real estate owned (REO) property sales, generating $39.4 million in proceeds and a $7.0 million gain, enhancing liquidity [7]. - A significant share repurchase program was implemented, with 1.66 million shares bought back for $12.5 million, and an additional 0.83 million shares for $6.8 million, increasing book value per share to $11.20 [8]. - Total liquidity stood at $236.4 million, down from $457.6 million in the previous quarter, primarily due to the absence of proceeds from a CRE CLO issuance [9]. Dividend and Outlook - The REIT declared a quarterly cash dividend of $0.24 per share, fully covered by distributable earnings, maintaining stability in line with REIT regulatory requirements [10]. - Management did not provide numerical guidance for future quarters, leaving investors focused on the company's ability to enhance distributable earnings and maintain loan origination levels [11][12].

Financial Data and Key Metrics Changes - The company reported distributable earnings of $52.1 million or $0.25 per share, and $62.5 million or $0.30 per share excluding one-time realized losses of $10.5 million from the sale of two REO assets in the second quarter [17] - The total delinquencies decreased to $529 million as of June 30 from $654 million at March 31, with non-performing loans (NPLs) at approximately $472 million compared to $511 million last quarter [19][20] - The average yield on core investments decreased to 7.95% from 8.15% last quarter, primarily due to less back interest collected and additional delinquencies [24] Business Line Data and Key Metrics Changes - In the agency business, the company originated $850 million in loans during the second quarter and $1.5 billion for the first six months, with a strong July resulting in $1 billion in agency loans [11][12] - The single-family rental business generated approximately $230 million in new business in the second quarter, with a strong pipeline and successful conversion of construction loans into bridge loans [13] - The construction lending business closed $265 million in deals in the first six months and an additional $144 million in July, with a strong pipeline of applications [14] Market Data and Key Metrics Changes - The prolonged elevated rate environment has created challenges in the agency originations business, affecting borrowers' ability to transition to fixed-rate loans [7] - The company anticipates that the current year will be challenging due to the significant drag on earnings from REO assets and delinquencies, with expectations for a transitional year [9][15] - The competitive landscape in balance sheet lending remains strong, with a significant appetite for deals and a large amount of capital chasing transactions [10] Company Strategy and Development Direction - The company views 2025 as a transitional year focused on resolving REO assets and delinquencies to build a strong earnings foundation for 2026 [16] - The company aims to leverage its securitization platform to scale up its single-family rental business and gain market share, enhancing competitive advantages [6] - The strategy includes being selective in closing deals, with a focus on maintaining credit quality and structure despite competitive pressures [10] Management's Comments on Operating Environment and Future Outlook - Management noted that the current elevated rate environment has created volatility and uncertainty, making it difficult to predict interest rate movements for the remainder of the year [7] - The company is optimistic about future earnings growth and dividend increases in 2026 if there is a sustained reduction in interest rates [9] - Management emphasized the importance of managing through the loan book effectively despite the challenges posed by the current economic environment [7] Other Important Information - The company successfully completed a high-yield unsecured debt offering, raising $500 million to pay off convertible debt and enhance liquidity [4][5] - The investment portfolio grew to $11.6 billion at June 30, with originations outpacing runoff for the second consecutive quarter [23] - The company recorded an additional $16 million in loan loss reserves in the second quarter, reflecting changes in the outlook on real estate values [22] Q&A Session Summary Question: Drop in net interest income from $75 million to $69 million - Management explained that the drop was due to increased delinquencies and less back interest collected on delinquent loans, with reversals impacting the figures [28][29] Question: Future REO levels and potential peak - Management indicated that they are aggressively managing non-performing loans and expect to see a peak in REO levels, with a focus on transitioning assets quickly [31][32] Question: Increased lending spreads and capital markets activity - Management noted that lower interest rates create opportunities for distressed deals, leading to increased interest in their REO and sub-performing loan books [37][38] Question: Losses related to REO this quarter - Management confirmed that losses were primarily from one property that was foreclosed and sold quickly, with another asset marked close to its value [50][51] Question: PIK interest on the balance sheet - Management confirmed that PIK interest is being capitalized in loan balances, with $95 million of PIK on the balance sheet as of June 30 [56][58] Question: Absorption of vacancy and property strategy - Management discussed that their portfolio is primarily in workforce housing, which is seeing steady growth in occupancy, and they are focused on repositioning underperforming assets [62][63] Question: Capital expenditures for portfolio repositioning - Management estimated that capital expenditures for repositioning assets would be in the range of $25 million to $50 million over time [70]

Company Announcement - Ready Capital Corporation will release its second quarter 2025 financial results after the New York Stock Exchange closes on August 7, 2025 [1] - Management will host a webcast and conference call on August 8, 2025, at 8:30 a.m. Eastern Time to provide a business update and discuss the financial results for the quarter ended June 30, 2025 [1] Webcast and Dial-in Information - The company encourages the use of the webcast due to potential extended wait times for the conference call via dial-in, with the webcast available in the Investor Relations section of the company's website [2] - The conference call can be accessed by dialing 877-407-0792 for domestic calls or 201-689-8263 for international calls [3] Replay Information - A replay of the call will be available on the company's website approximately two hours after the live call and will remain accessible through August 22, 2025 [4] - To access the replay, the domestic dial-in number is 844-512-2921 and the international number is 412-317-6671, with a replay pin number of 13753253 [4] Company Overview - Ready Capital Corporation is a multi-strategy real estate finance company that originates, acquires, finances, and services investor and owner-occupied commercial real estate loans [5] - The company specializes in loans backed by commercial real estate, including agency multifamily, investor, construction, and bridge loans, as well as U.S. Small Business Administration loans under its Section 7(a) program [5] - Headquartered in New York, the company employs approximately 500 professionals nationwide [5]

Financial Data and Key Metrics Changes - GAAP net loss allocable to common shares for Q2 2025 was $732,000, translating to a loss of $0.10 per diluted share, which included $8,600,000 in interest income, an increase of $3,000,000 from the prior quarter [10] - Earnings available for distribution (EAD) for Q2 2025 was $0.04 per share, compared to a loss of $0.86 per share in Q1 2025, reflecting a $0.40 increase in net interest income and a $0.26 increase from real estate operations [11] - GAAP book value per share decreased to $27.93 on June 30 from $28.50 on March 31 [11] Business Line Data and Key Metrics Changes - The company closed one new commitment of $72,000,000 with an unfunded commitment of $1,200,000, and funded existing loan commitments of $7,300,000, resulting in a net increase to the loan portfolio of $60,500,000 [6] - The commercial real estate loan portfolio totaled $1,400,000,000 across 48 individual investments, with a weighted average risk rating of 2.9 [7] Market Data and Key Metrics Changes - The total allowance for credit losses at June 30 was $30,300,000, representing 2.18 basis points on the $1,400,000,000 loan portfolio at par [11] - The weighted average spread of floating rate loans in the portfolio is now 3.65% over one-month term SOFR rates [6] Company Strategy and Development Direction - The company aims to grow the portfolio by $300,000,000 to $500,000,000 by the end of the year, which will include capital from loan payoffs and sales of REO properties [18] - The strategy includes optimizing portfolio leverage to drive equity returns and redeploying capital into attractive commercial real estate loans [8] Management's Comments on Operating Environment and Future Outlook - Management noted a stable credit picture and expressed confidence in the ability to achieve targeted returns on equity by focusing on specific asset classes [20] - The company plans to execute another CLO in the back half of the year, although specific timing remains uncertain [25] Other Important Information - The company used $5,100,000 to repurchase 272,000 common shares at an approximate 33% discount to book value [12] - Available liquidity at June 30 was $65,000,000, consisting of $43,000,000 in unrestricted cash and $22,000,000 in projected financing available on unlevered assets [12] Q&A Session Summary Question: Timing of payoffs and asset sales for capital redeployment - Management indicated a goal to grow the portfolio by $300,000,000 to $500,000,000 through payoffs and sales of REO properties [18] Question: Opportunities in the marketplace and guidance for spreads - Management acknowledged compressed spreads in certain sectors but expressed confidence in achieving targeted returns on equity by focusing on specific assets [20] Question: Thoughts on leverage and REO financing - Management stated they could increase leverage to around 3.5 to 4 turns using non-recourse CRE CLO financing, with current properties being levered at the asset level [23] Question: Plans for a CLO in the back half of the year - Management confirmed plans to execute another CLO, with timing likely in Q4 or Q1 [25] Question: Reinstating the dividend - Management indicated that reinstating the dividend would depend on monetizing assets and ramping the portfolio to target levels [27]

Financial Highlights - The company's book value was $3961 million, or $1740 per common share[16] - Net income was $223 million in 2Q 2025, with net income attributable to common stockholders of $123 million, or $054 per diluted common share[16] - Cash available for distribution (CAD) was $106 million, or $046 per diluted common share in 2Q 2025[16] - A 2Q 2025 dividend of $050 per common share was paid on June 30, 2025[16] Portfolio Composition - The outstanding total portfolio is $11 billion, composed of 86 investments[17] - The company funded $65 million on a loan with a monthly coupon of SOFR+900bps[17] - The company purchased a $153 million CMBS I/O Strip with a bond equivalent yield of 724%[17] - The company purchased $395 million of Preferred Stock[17] Capitalization Metrics - The debt to equity ratio was 187x as of June 30, 2025[18] - NREF Series B Preferred dividends were covered 187x in the quarter[18] - The weighted average remaining term is 37 years[18] - Outstanding repo financing is $2609 million, equating to 478% advance rate on CMBS B-Piece and IO Strips Portfolio[18]

Core Viewpoint - NexPoint Real Estate Finance, Inc. reported strong financial results for Q2 2025, highlighting resilience in earnings amid challenging credit conditions in the market [2][3]. Financial Performance - Net income attributable to common stockholders for Q2 2025 was $12.3 million, or $0.54 per diluted share [1][14]. - Cash available for distribution for the same period was $10.6 million, or $0.46 per diluted common share [1][14]. Investment Strategy - The company remains disciplined and opportunistic in its investment approach, focusing on capital deployment in a complex credit landscape [2]. - NREF's total portfolio is valued at $1.1 billion, consisting of 86 investments across various sectors, including single-family rentals, multifamily, and life sciences [9]. Future Guidance - For Q3 2025, the company projects earnings available for distribution per diluted common share to be $0.425 at the midpoint [8]. - Cash available for distribution per diluted common share guidance for Q3 2025 is set at $0.505 at the midpoint [10]. Portfolio Composition - As of June 30, 2025, the investment portfolio is composed of 15.5% single-family rental, 49.5% multifamily, and 32.7% life sciences, among other sectors [9]. - The weighted-average loan to value (LTV) ratio is 58.5%, with a debt service coverage ratio (DSCR) of 1.44x [9]. Recent Transactions - During Q2 2025, NREF purchased $39.5 million of preferred stock and funded $6.5 million on a loan with a monthly coupon of SOFR + 900 bps [9]. - The company also acquired a $15.3 million CMBS I/O strip with a bond equivalent yield of 7.24% [9]. Conference Call - A conference call is scheduled for July 31, 2025, to discuss the financial results for Q2 2025 [11].

Financial Data and Key Metrics Changes - ARI reported distributable earnings of $36 million or $0.26 per share for Q2 2025, an 8% increase from the previous quarter, providing dividend coverage of about 104 times [7][11] - The carrying value of ARI's portfolio increased 12% from the prior quarter to approximately $8.6 billion, up from $7.7 billion at the end of Q1 [8][10] - The weighted average unlevered yield of the portfolio was 7.8% [8] Business Line Data and Key Metrics Changes - ARI committed $1.4 billion to new loans during Q2 2025, with year-to-date commitments totaling $2 billion [2][9] - Loans secured by residential properties now comprise approximately 25% of ARI's portfolio, representing the largest property type concentration [3] - The portfolio's risk rating remained stable at 3.0, with no downgrades or asset-specific CECL allowances recorded during the quarter [10] Market Data and Key Metrics Changes - Approximately 50% of ARI's portfolio is in Europe, which accounted for 18% of originations year-to-date, benefiting from recent interest rate cuts [3] - The market for acquisitions in Europe is gaining momentum, with a healthy pipeline across property types [3] Company Strategy and Development Direction - ARI is focused on executing value maximization plans for its focus assets, aiming to convert underperforming capital into higher-yielding reinvestment opportunities [5] - The company plans to continue capital rotation, which is expected to positively impact earnings in 2025 and throughout 2026 [5] - ARI's strategy includes maintaining a diversified loan portfolio and leveraging Apollo's real estate credit platform for transaction flow [2] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to redeploy capital into newly originated loans and identify attractive opportunities across the U.S. and Western Europe [2] - The management noted that the commercial real estate market is expected to remain robust through the end of the year, with increased deal flow and activity [34][35] - There is ongoing dialogue about potentially extending the duration of the portfolio, but no significant shift in strategy is expected at this time [38] Other Important Information - ARI completed a new five-year floating rate $750 million term loan B, which repaid existing loans with pending maturities in 2026 and 2028 [6] - The company ended the quarter with $2.8 billion in total liquidity, including cash on hand and committed undrawn credit capacity [12] - A settlement agreement with the Commonwealth of Massachusetts is expected to yield approximately $18 million for ARI, which will be recycled into new loan origination [11] Q&A Session Summary Question: What is the expected timeline for cash flow from the Brook asset? - Management anticipates meaningful progress on leasing by the end of the year, with the asset turning modestly cash flow positive in early next year [17] Question: Is there potential upside from land parcels near the Brook? - Discussions are ongoing regarding a small parcel that could increase density, but it is too early to predict the likelihood of success [22] Question: What is the plan for the capital structure and leverage? - Management plans to maintain current leverage levels while converting non-earning assets into earning assets to drive dividend growth [25] Question: How does the company view the commercial real estate transaction market? - Management is optimistic about the transaction market, noting increased activity and confidence in finding suitable opportunities [34] Question: Is ARI considering extending the duration of its portfolio? - While monitoring the situation, management does not expect a meaningful shift in strategy at this time [38] Question: What is the outlook for senior housing investments? - Management is focused on private pay senior housing, which is expected to benefit from favorable demographic trends [52]

Financial Data and Key Metrics Changes - TRTX reported GAAP net income of $16.9 million or $0.21 per common share, with distributable earnings of $0.24 per common share, covering the quarterly dividend [12] - Book value per common share was $11.2, slightly down from $11.19 in the previous quarter [12] - The CECL reserve rate declined to 176 basis points from 199 basis points, reflecting a 12% decrease [16] Business Line Data and Key Metrics Changes - The loan portfolio grew by 15% during the second quarter, driven by strong origination volume [15] - Seven new loans were originated with total commitments of $695.6 million and a weighted average credit spread of 2.86% [13] - The REO carrying value declined by $32.5 million or approximately 12% due to the sale of two REO properties, generating a GAAP gain of $7 million [14] Market Data and Key Metrics Changes - U.S. equity markets rallied, with the S&P 500 reaching an all-time high, while corporate credit markets tightened [6] - Real estate credit markets experienced widening in loan spreads due to tariff volatility, impacting lending dynamics [6] Company Strategy and Development Direction - The company aims to leverage its liquidity position and capital deployment strategies to drive earnings growth [10] - TRTX is focused on multifamily and industrial sectors, which are seen as liquid and resilient during economic cycles [39] - The company plans to continue selling REO properties and has a strategy in place for managing and improving the performance of these assets [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of the loan portfolio, with no credit migration expected [48] - The company anticipates an elevated pace of new investments in the coming quarters, supported by a strong pipeline [25] - Management noted strong fundamentals in the multifamily sector, driven by slowing new construction and elevated borrowing rates [42] Other Important Information - TRTX's share price performance has led its peers with a cumulative return of 68% since January 2023 [19] - The company maintains a 100% performing loan portfolio and a stable liability structure that is 95% non mark to market [18] Q&A Session Summary Question: Future quarterly origination volumes - Management indicated that elevated origination volumes are expected to continue due to attractive lending opportunities as banks pull back [24] Question: Loan size targeting - The company has maintained a consistent scale in loan sizes, with larger loans providing diversification benefits [27] Question: REO sales and potential gains - Management noted a history of selling REO properties at book gains and plans to move several remaining properties to market soon [32] Question: Portfolio opportunity and repositioning - The focus remains on multifamily and industrial sectors, with ongoing monitoring of refinancing trends and potential acquisition loans [40] Question: Credit risk migration - Management stated that current reserves reflect future expectations, and no significant credit migration is anticipated [47]

Financial Performance - Net income available to common stockholders was $18 million, or $0.12 per diluted share[10] - Distributable Earnings reached $36 million, or $0.26 per diluted share[10] - The company declared common stock dividends of $0.25 per share, resulting in a dividend yield of 10.2%[10] Loan Portfolio - The total loan portfolio amounted to $8.6 billion with a weighted-average unlevered all-in yield of 7.8%, with 98% in first mortgages and 96% floating rate[10] - New loan commitments totaled $2.0 billion year-to-date, with $1.4 billion funded at close, and $1.4 billion in Q2, with $916 million funded at close[10] - Loan repayments and sales amounted to $724 million year-to-date, with $631 million in Q2[10] Capitalization and Liquidity - The company ended the quarter with a total common equity book value of $1.7 billion[10] - Total liquidity at the end of the quarter was $208 million, including $182 million in cash and $26 million available leverage[10] - A new $750 million Term Loan B due June 2030 was refinanced, bearing interest at SOFR + 3.25%[10] Real Estate Owned (REO) - Total REO held for investment had a net equity of $444 million, comprised of Brooklyn Multifamily Development ($289 million), D C Hotel ($85 million), and Atlanta Hotel ($70 million)[21] - Nine units at 111 West 57th Street closed, generating ~$170 million of net sales proceeds, ~$141 million of which reduced ARI's basis[23] Foreign Exchange Risk Mitigation - The company reported a total foreign loan capital stack of $4.307 billion, with $3.267 billion offset by local currency denominated secured debt arrangements[52] - The net equity of foreign loans was $1.041 billion[53]

Core Viewpoint - A class action lawsuit has been filed against Broadmark Realty Capital Inc. regarding the merger with Ready Capital Corporation, alleging misleading statements in the proxy statement used to solicit shareholder support for the merger [1][5]. Group 1: Lawsuit Details - The lawsuit claims that the proxy statement contained false or misleading statements and failed to disclose significant financial distress among borrowers in Ready Capital's portfolio due to high interest rates [5]. - It is alleged that an oversupply of multifamily properties limited the ability of Ready Capital borrowers to raise rents necessary to cover growing debt costs [5]. - A major development project acquired during the merger, valued at approximately $500 million, faced catastrophic setbacks including cost overruns and construction delays [5]. - The lawsuit asserts that Ready Capital's expected credit loss reserves were materially understated, impacting financial projections related to earnings and dividends [5]. Group 2: Participation Information - Individuals who held Broadmark common stock as of the merger date may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - Interested parties can join the class action by visiting the provided link or contacting the law firm for more information [3][6].