Financial Data and Key Metrics Changes - For Q4 2025, the company reported GAAP net income of $0.2 million and distributable earnings of $18.5 million, or $0.24 per common share [13] - For the full year 2025, GAAP net income was $45.5 million, or $0.57 per share, with distributable earnings of $76.8 million, or $0.97 per common share, achieving a coverage ratio of 1.01x for the annual dividend of $0.96 per share [13] - Book value per common share decreased from $11.25 to $11.07 quarter-over-quarter [13] Business Line Data and Key Metrics Changes - In Q4 2025, the company closed $927 million in new loans, with 62% in multifamily and 38% in industrial collateral [7] - The company originated 20 loans with total commitments of $1.9 billion at a weighted average credit spread of 2.82% for the full year [14] - The loan portfolio was 100% performing at year-end, with a weighted average risk rating unchanged at 3.0 [14][15] Market Data and Key Metrics Changes - The company observed a trend of capital allocation towards real estate credit due to dislocation in parts of the corporate credit market [5] - The company increased its exposure to multifamily and industrial collateral from 30% at the beginning of 2022 to over 72% of the current balance sheet [9] Company Strategy and Development Direction - The company plans to continue net asset growth through prudent investment and risk management, targeting a leverage ratio of 3.5-3.75x [10][29] - The company aims to maximize shareholder value and is focused on closing the value gap as indicated by the stock trading at a discount to book value [40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver strong performance in 2026, supported by a robust pipeline and favorable market conditions [11][21] - The company noted that clarity around the path of interest rates and competitive credit spreads create a favorable environment for active origination [21] Other Important Information - The company ended the quarter with near-term liquidity of $143 million, including $72.6 million in cash available for investment [15] - The liability structure is 82% non-mark-to-market, with a year-over-year cost of funds decline of 18 basis points to 1.82% [17] Q&A Session Summary Question: Expectations for origination in Q1 2026 - Management indicated that origination volumes in Q4 2025 are expected to continue into Q1 2026, with a robust pipeline across all property types [19] Question: Loan spreads and market competition - Management noted that while loan spreads were tighter in Q4, the cost of funds moved in line, maintaining static ROEs relative to prior quarters [22][24] Question: Target leverage and REO assets - Management targets a leverage ratio of 3.5-3.75x and plans to continue selling down REO assets throughout the year [29][30] Question: Appropriate ROE target - Management stated that an ROE in excess of SOFR + 5% is achievable, reflecting the health of the back leverage market [35] Question: Closing the value gap - Management emphasized a focus on maximizing shareholder value and evaluating opportunities to close the value gap indicated by the stock's discount to book value [40]

Financial Performance - GAAP Net Income was approximately $1 million, or $0.01 per share[8] - Distributable Earnings were $33 million, or $0.03 per share[8] - Adjusted Distributable Earnings were $212 million, or $016 per share[8] - A dividend of $016 per share was declared and paid for Q3'25, representing a 121% yield on the current share price[8] Portfolio Overview - Total At-Share Assets (Undepreciated) amounted to $35 billion[6] - The total loan portfolio was $24 billion, consisting of 85 total loans with an average loan size of $28 million[6] - The W A Unlevered All-in Yield was 77%[6] - 91% of the loans were less than $50 million in size, based on loan count[6] - The loan portfolio had a W A risk ranking of 31[8] - Total CECL reserve was $127 million, or $098 per share[8] Liquidity & Capitalization - Total liquidity was $280 million, including $87 million of unrestricted cash ($067 per share) and a $165 million fully undrawn corporate revolver[6] - Master Repurchase Facilities Availability was $11 billion[6] - The Debt-to-Equity Ratio was 19x[6]

Financial Data and Key Metrics Changes - The company reported a GAAP EPS loss of $0.30 per share for Q1 2025, compared to an income of $0.19 per share in Q1 2024, which included $0.47 per share from the sale of the Shelburne Hotel [12] - Baseline EBITDA for Q1 2025 was $108 million, a 5% increase year-over-year, bringing the trailing twelve-month baseline EBITDA to $412 million [12] - Assets under management grew by 26% over the past two years to $29 billion, producing approximately $575 million in estimated annual NOI and fees [5] Business Line Data and Key Metrics Changes - The rental housing sector, representing 66% of assets under management, is expected to grow to over 80% in the next three years [6] - Same property multifamily occupancy increased to 95%, with same property revenue growing by 3% and same property NOI by 4.3% in Q1 [7] - Investment management fees grew by 17% in Q1 to $25 million, reflecting strong performance in the credit platform and continued growth in equity platforms [8][24] Market Data and Key Metrics Changes - U.S. real estate transaction volumes increased by 23% in Q1, with no material changes in sentiment observed in Q2 [6] - The Pacific Northwest portfolio saw the strongest NOI growth of 6.6%, driven by return-to-office mandates [19] - In Ireland, same property NOI in the apartment portfolio increased by 3.5%, supported by occupancy growth and strong operating expense management [21] Company Strategy and Development Direction - The company is focused on simplifying its business through asset sales, reducing unsecured debt, and increasing free cash flow [10] - The asset sale program aims to generate between $400 million to $450 million in cash by year-end, with $150 million to $200 million expected to close by the end of Q2 [10] - The company is expanding its credit solutions to include mezzanine debt and preferred equity investments, enhancing its ability to capture opportunities within the credit space [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving fee revenue growth targets of 20% to 25% annually, supported by a strong Q2 pipeline [9] - The company believes that the best risk-adjusted returns are found in the rental housing sector due to demand driven by housing shortages and declining new supply [6] - Management noted that the current economic environment presents attractive investment opportunities, and the company is well-positioned to capitalize on these [9] Other Important Information - The company has reduced its unsecured debt by $250 million over the last two years and plans to continue this trend [10] - Total debt is 96% fixed or hedged, with a weighted average maturity of 4.8 years and an effective interest rate of 4.7% [16] - The company has a strong pipeline of advanced stages totaling $375 million in its new U.K. single-family rental platform [26] Q&A Session Summary Question: Regarding fee-bearing capital growth - Management confirmed confidence in achieving 20% to 25% annual growth in fees, supported by a strong pipeline and future fundings [29][30] Question: On liquidity and partner capital costs - Management acknowledged increased competition but emphasized strong relationships and flexibility in pricing to remain competitive [31][32][34] Question: Stock buyback plans - Management indicated that current cash usage is focused on paying down unsecured debt, with stock buybacks reconsidered post-debt reduction [35][36][37] Question: Dispositions and cap rates - Management confirmed that dispositions are well underway, with most expected to close in June, but refrained from commenting on specific cap rates [40][42] Question: Loan origination rates - Management noted some downward pressure on spreads due to increased competition, but still finds the rates attractive relative to alternatives [49][51] Question: Exposure to government-backed housing - Management reported that about 15% of tenants have some form of HUD backing, but expressed no immediate concerns regarding capital availability [56][60]