Core Viewpoint - Lument Finance Trust, Inc. has successfully closed a $663.8 million managed Commercial Real Estate Collateralized Loan Obligation (CRE CLO), enhancing its financing capabilities and investment portfolio [1][2]. Group 1: Financial Details - The company placed approximately $585.0 million of investment grade securities with institutional investors, providing term financing on a non-mark-to-market, non-recourse basis [1]. - The CRE CLO includes a 30-month reinvestment period, an advance rate of 88.1%, and a weighted average interest rate at issuance of Term SOFR plus 1.91%, before transaction costs [1]. - The initial collateral pool consists of 32 first lien floating rate mortgage loans secured by 49 multifamily and commercial real estate properties across the United States [2]. Group 2: Collateral and Management - A portion of the collateral was owned by Lument Finance Trust prior to the closing of LMNT 2025-FL3, while the remaining collateral was acquired from an affiliate of Lument Investment Management, LLC, at par plus accrued interest [2]. - The weighted average collateral spread was approximately 321 basis points over one-month SOFR [2]. - J.P. Morgan Securities LLC acted as the sole structuring agent, lead manager, and sole bookrunner for LMNT 2025-FL3, with Citizens JMP Securities, LLC serving as co-manager [3]. Group 3: Company Overview - Lument Finance Trust is focused on investing in, financing, and managing a portfolio of commercial real estate debt investments, primarily in transitional floating rate commercial mortgage loans with an emphasis on middle-market multi-family assets [5].

Core Insights - Walker & Dunlop's annual survey indicates a bullish outlook for affordable housing investment, with optimism for continued growth into 2026 [1][5] Investment Sentiment - 90% of respondents expect an increase in appetite for investments in affordable housing over the next year, a significant rise from 70% in the previous year [6] - 65% of respondents reported an increase in affordable housing investments in the past year, up from 52% last year, indicating strong momentum in the market [6] HUD Effectiveness - 59% of respondents view HUD's performance positively, with 8% rating it as very effective and 51% as effective in supporting affordable housing construction [6] - 18% of respondents felt HUD was neutral, while 18% expressed dissatisfaction with its effectiveness, citing regulatory complexity and funding limitations [6] Economic Policies Impact - 70% of respondents believe economic policies, particularly tariffs, negatively affect affordable housing development due to increased material and labor costs [6] - 17% of respondents were neutral on the impact of tariffs, while 13% did not see them as detrimental, suggesting varied perspectives on cost absorption [6] Tax Bill Changes - Respondents generally believe recent tax bill changes under the One Big Beautiful Bill Act (OBBBA) will positively influence affordable housing production over the next five years [6] - 29% expect no or minor impact (0-5% increase), 33% anticipate moderate impact (6-10% increase), and 25% foresee significant or major impact (11%+ increase) [6][9]

Core Insights - Greystone has provided a $24,477,000 Fannie Mae DUS® loan to refinance Manchester at Wesleyan, a 328-unit apartment community in Macon, Georgia [1] - The refinancing will support the sponsor's value-add strategy, which has already improved property and operating performance [2] Company and Property Overview - Manchester at Wesleyan, built in 1996, features amenities such as two pools, a fitness center, a gated dog park, and updated interiors [2] - Since acquiring the property in 2023, the sponsor has invested over $1 million in renovations, increasing physical occupancy to 94.2% [3] - The property qualifies as mission-driven under Fannie Mae's affordability criteria, serving residents at or below 80% of the area median income [3] Sponsor Performance - Arcan Capital has a strong track record in operating multifamily assets in the Southeast, successfully executing their business plan for Manchester at Wesleyan [4] - The refinancing allows Arcan Capital to return capital to investors while continuing to invest in the asset [4]

Core Points - TPG RE Finance Trust, Inc. announced the closing of TRTX 2025-FL7, a $1.1 billion managed Commercial Real Estate Collateralized Loan Obligation [1] - The company placed approximately $957.0 million of investment grade securities with institutional investors [1] - The financing is provided on a non-mark-to-market, non-recourse basis [1] Financial Details - TRTX 2025-FL7 features a 30-month reinvestment period [1] - The advance rate for the CLO is set at 87.0% [1]

Core Insights - Three stocks are highlighted with strong buy rankings and attractive income characteristics for investors to consider on November 17th Group 1: TPG RE Finance Trust (TRTX) - TPG RE Finance Trust is a commercial real estate finance company focusing on originating, acquiring, and managing commercial mortgage loans and related debt instruments [1] - The Zacks Consensus Estimate for its current year earnings has increased by 1% over the last 60 days [1] Group 2: Preferred Bank (PFBC) - Preferred Bank is one of the largest independent commercial banks in California, targeting the Chinese-American market [2] - The Zacks Consensus Estimate for its current year earnings has risen by 5.6% over the last 60 days [2] - The company has a dividend yield of 3.3%, compared to the industry average of 3.1% [2] Group 3: Popular (BPOP) - Popular is a full-service financial services provider offering a wide range of banking and financial services [3] - The Zacks Consensus Estimate for its current year earnings has increased by 3.6% over the last 60 days [3] - The company has a dividend yield of 2.6%, which is higher than the industry average of 2.2% [4]

Core Viewpoint - TPG RE Finance Trust, Inc. reported strong third-quarter results, highlighting continued investment momentum and a robust loan pipeline that is expected to drive future growth in earnings [2][3]. Financial Performance - The company recognized GAAP net income of $18.4 million, or $0.23 per common share, for the third quarter of 2025, with a book value per common share of $11.25, up from $11.20 at the end of the previous quarter [3]. - Distributable Earnings for the quarter were $19.9 million, or $0.25 per common share [3]. - A cash dividend of $0.24 per share was declared and paid to common stockholders, with preferred stockholders receiving a quarterly dividend of $0.3906 per share [3]. Share Repurchase and Capital Management - The company repurchased 1,117,024 shares of common stock for a total of $9.3 million, increasing book value per common share by $0.04 [3]. - A new share repurchase program was approved, allowing for the repurchase of up to $25.0 million of common stock [3]. Loan Activity - In the third quarter, the company originated $279.2 million in total loan commitments, maintaining a loan portfolio that is 100% performing [2][3]. - The weighted average interest rate for newly originated loans was Term SOFR plus 3.22%, with a loan-to-value ratio of 64.9% [3]. - Loan repayments totaled $415.8 million, with the majority coming from multifamily and hotel properties [3]. Liquidity and Financial Position - The company ended the quarter with $216.4 million in near-term liquidity, including $77.2 million in cash available for investment [3]. - An allowance for credit losses was recorded at $66.1 million, a decrease from the previous quarter [3]. Subsequent Events - The company closed three first mortgage loans with total commitments of $196.5 million and announced the pricing of a $1.1 billion managed Commercial Real Estate Collateralized Loan Obligation [11].

Financial Performance - Distributable Earnings for Q3 2025 were $32.1 million, resulting in a Distributable EPS of $0.25 and an after-tax Distributable ROAE of 8.3%[10] - The company declared a Q3 2025 cash dividend of $0.23 per LADR share, representing an annual dividend yield of 8.4%[10] - Undepreciated book value per share was $13.71, net of a $0.41 per share CECL allowance[10] Balance Sheet & Capital Structure - Total liquidity stood at $879 million, including $830 million of undrawn capacity on the unsecured corporate revolver[8, 10] - The company's capitalization is comprised of 92% non-mark-to-market financing & book equity, with 88% of debt being non-mark-to-market[10, 36] - Unsecured debt accounts for 75% of total financing[8, 10, 36] - The adjusted leverage ratio is 1.7x[8, 10, 36] - The company has $3.9 billion of unencumbered assets, with 88% comprised of cash, first mortgage loans, and investment grade securities[8, 10, 38] Investment Portfolio - Investment assets & unrestricted cash totaled $4.9 billion, including $1.9 billion in first mortgage loans (40%), $960 million in CRE equity (19%), and $1.9 billion in securities (40%)[7, 10] - New loan originations in Q3 2025 reached $511 million, the largest quarterly origination volume in over three years[7, 10] - The company closed an inaugural investment grade corporate bond issuance of $500 million senior unsecured notes due 2030 at a 5.50% coupon[8, 10]

Core Insights - Greystone has provided a $42.4 million Freddie Mac loan to refinance Cortland on the River, a 237-unit multifamily community in Boise, Idaho [1][2] - The property, built in 2021, features studio, one- and two-bedroom units with smart home features and various amenities [2] - Cortland, the sponsor of the property, is a national multifamily investment and management firm with a strong track record in agency lending [2][3] Company Overview - Greystone is a private national commercial real estate finance company recognized as a leader in multifamily and healthcare finance [3] - The company has ranked as a top lender for FHA, Fannie Mae, and Freddie Mac in the multifamily sector [3] - Loans are offered through Greystone Servicing Company LLC, Greystone Funding Company LLC, and other affiliates [3]

Core Viewpoint - TPG RE Finance Trust (TRTX) has been upgraded to a Zacks Rank 2 (Buy), indicating an upward trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with near-term stock price movements [4][6]. - TPG RE Finance Trust is expected to earn $1.01 per share for the fiscal year ending December 2025, with no year-over-year change, but the Zacks Consensus Estimate has increased by 2.2% over the past three months [8]. Institutional Investor Influence - Institutional investors utilize earnings estimates to determine the fair value of stocks, and changes in these estimates can lead to significant stock price movements as they adjust their positions accordingly [4][5]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7][9]. - The upgrade of TPG RE Finance Trust to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

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].