Financial Data and Key Metrics Changes - For Q4 2024, the company reported net income of $0.43 per diluted share, down from $0.73 per diluted share in Q4 2023, primarily due to unrealized losses on common stock investments and changes in net assets on CMBS VIEs [10] - Interest income decreased by $15.4 million to $32.3 million in Q4 2024 from $47.7 million in Q4 2023 [10] - Earnings available for distribution were $0.83 per diluted common share in Q4, compared to $0.44 per diluted common share in the same period of 2023 [11] - Cash available for distribution was $0.47 per diluted common share in Q4, down from $0.51 per diluted common share in Q4 2023 [12] - For the full year 2024, net income was $1.02 per diluted share, up from $0.60 per diluted share in 2023 [14] Business Line Data and Key Metrics Changes - The portfolio consists of 83 investments with an outstanding balance of $1.1 billion, allocated across various sectors including 15.5% single-family rental, 49.7% multifamily, and 31% life sciences [16] - The collateral on the portfolio is 76.5% stabilized with a loan-to-value ratio of 59.2% and a weighted average debt service coverage ratio of 1.32 times [18] Market Data and Key Metrics Changes - Multifamily fundamentals are improving, with Q4 starts at 37,000 units, the lowest since Q4 2011, indicating a potential inflection point as supply wanes [21] - The company is actively underwriting $300 million of opportunities in life sciences, particularly in infrastructure and pharmaceutical manufacturing [24] Company Strategy and Development Direction - The company aims to capitalize on growth opportunities in multifamily and life sciences sectors, with expectations for new lease growth to turn positive in the second half of the year [22][23] - The company is exploring multiple avenues for funding growth, including A-note warehouses and bond-rated deals [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2025, citing a strong credit profile and growth potential in the multifamily and life sciences sectors [20] - The company is confident in its ability to navigate challenges in the commercial real estate sector and is prepared to take advantage of favorable market conditions [25] Other Important Information - The company paid a regular dividend of $0.50 per share in Q4 and has declared a dividend of $0.50 per share for Q1 2025 [12] - The weighted average cost of debt is 6% with a weighted average maturity of 1.4 years [18] Q&A Session Summary Question: Can you talk about the returns on new investments and how they compare to other opportunities? - Management indicated that Freddie K deals are expected to yield 8% to 9%, with potential returns in the low to mid-teens when leveraging [32] Question: Can you provide an update on life science investments and key metrics? - Management highlighted a $220 million commitment in Massachusetts, with a loan-to-cost attachment point of approximately 25% and a stabilized debt yield of over 30% [35] Question: What is the status of loan performance and any delinquent loans? - Management noted a few watch list loans but emphasized overall strong portfolio performance with minimal delinquency [40][60]