Financial Data and Key Metrics Changes - For Q1 2025, the company reported GAAP net income of $10 million or $0.12 per common share, with a book value per common share of $11.19 and distributable earnings of $0.24 per common share, aligning with the quarterly dividend [11] - The company maintained a 100% performing loan portfolio and an unchanged weighted average risk rating of 3.0, with no credit migration [12][14] - The general reserve increased to $67.2 million or 199 basis points from $64 million or 187 basis points, reflecting higher interest rates and potential economic recession risks [14] Business Line Data and Key Metrics Changes - The company closed two multifamily loans totaling $131 million after the quarter end and executed term sheets on another $310 million of transactions [7][12] - The capital markets segment issued a new $1.1 billion CRE CLO, increasing the proportion of non mark-to-market non-recourse term match liabilities to 91% [12][16] - The company repurchased approximately $9 million worth of common shares, boosting book value per share by $0.05 [12] Market Data and Key Metrics Changes - The investment pipeline grew significantly as certain lenders paused or slowed their activity due to broader market pullback, providing TRTX with a comparative advantage [9] - The company reported a cumulative return of 47% since January 2023, outperforming peers [13] Company Strategy and Development Direction - The company remains focused on the housing sector, particularly multifamily, due to its resilient and stable NOI profile, while also pursuing transactions across various property types and geographies [6] - The company aims to drive growth in distributable earnings through capital allocation strategies, including deploying excess liquidity and recycling equity [8][18] Management's Comments on Operating Environment and Future Outlook - Management noted that the current market environment is characterized by elevated borrowing costs, but borrowers are being more disciplined regarding the amount of debt they are willing to take on [22][23] - The company is well-positioned to navigate the uncertain market and capture special situation lending opportunities, with strong liquidity and a 100% performing loan portfolio [18] Other Important Information - The company has $2 billion of financing capacity available to support loan investment activity and is in compliance with all financial covenants [17] - Liquidity was reported at $457.6 million, including cash in excess of covenant requirements [17] Q&A Session Summary Question: Can you provide insights on the risk profile in current originations compared to previous years? - Management highlighted that the entry point for loans is more favorable now, with no significant proceeds creep observed compared to 2021 and 2022 [21][22] Question: Why were there no originations in Q1 despite having live investment opportunities? - Management explained that the lack of originations was due to tighter loan spreads and longer closing times caused by market dislocation [30][32] Question: What is the status of the REO portfolio and its expected reduction? - Management confirmed plans to stick to the previously described cadence for REO sales, despite increased market uncertainty [36] Question: How do the transaction prices for the two REOs compare to carrying values? - Management stated that they generally sell REO at prices exceeding carrying value, but specific transaction details will be disclosed upon closing [39]