Financial Data and Key Metrics Changes - FBRT reported GAAP net income of $18.4 million, or $0.13 per fully converted common share, with distributable earnings of $17.9 million, or $0.12 per fully converted share [14] - Distributable earnings included $9.8 million of realized losses, with $7.7 million related to debt extinguishments and the balance from REO sales [14][15] - Book value per share ended the quarter at $14.15, reflecting the dividend outpacing earnings [17] Business Line Data and Key Metrics Changes - The core portfolio finished Q4 at approximately $4.4 billion, with 77% of loans backed by multifamily assets [21] - During Q4, the company originated 37 loans at a weighted average spread of 284 basis points, with multifamily representing 76% of new loan originations [21] - Agency volume reached $1.1 billion in new loan originations for the quarter, with expectations of $4.5 billion to $5.5 billion in 2026 [18] Market Data and Key Metrics Changes - Market conditions are improving, with abundant liquidity and tight spreads, the tightest seen since pre-GFC days [12] - Regional banks are slowly returning to the market, particularly in the multifamily space, but the company is cautious about chasing current market spreads [12] Company Strategy and Development Direction - The company has transitioned to a commercial real estate investment platform, moving away from being a pure play mortgage REIT, which is expected to provide more earning stability and stronger long-term book value growth [9][11] - The focus is on balancing attractive current income with disciplined book value growth, aiming for sustainable dividend coverage and book value growth [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that the earnings potential remains strong, with expectations to return to $0.35-$0.36 per share in the future, despite current challenges [30] - The company is navigating a significantly better market than two years ago, but the timing of asset sales and borrower behavior has delayed progress [31][62] Other Important Information - The company has reauthorized a share repurchase program with $50 million available for future repurchases through December 31, 2026 [17] - NewPoint's integration is progressing, with expectations for its distributable earnings contribution to operate at a run rate of approximately $25 million to $33 million per year [18] Q&A Session Summary Question: How should we think about capital allocation this quarter? - The company is focused on origination and has a $1.7 billion under application pipeline, adjusting the mix of origination to avoid chasing tight spreads [28] Question: Should we expect the dividend reset to be a good baseline for run rate earnings going forward? - The company expects to grow earnings over the next several quarters, aiming for a core book size between $4.8 billion and $5 billion by year-end [30] Question: Will there be a percentage of capital in direct real estate investments going forward? - The company has made several equity investments and expects to allocate a slightly higher percentage of capital to equity investments over the next few years, but will remain primarily a debt-focused entity [38] Question: How is the agency business with NewPoint progressing? - The agency business is highly sensitive to interest rates, with expectations for significant volume increases if rates decrease [57]