Oct 27, 2026 earnings call — Loan originations and CLO financing focus
Closed $773 million of new investments and increased net earning assets by $600 million.
Revenue $0.0B (est $0.0B) · EPS $0.07 (est $0.25)
Key quotes
"Since September 2025, we've originated $2.3 billion of loan investments, representing nearly 45% of our current loan portfolio and contributing to a 36% year-over-year growth in net earning assets while maintaining a disciplined approach to underwriting, portfolio construction, and risk management."
"The transaction securitized approximately $1 billion of collateral that was approximately 95% multifamily and industrial, and is expected to be accretive to our cost of funds and increased our percentage of non-mark-to-market liabilities to over 85%."
"During the quarter, we fully exhausted our existing $25 million share repurchase plan, repurchasing shares of what remains a meaningful discount to book value."
Analyst Q&A 4
How rate moves affect deals and loans
Q (Rick Shane · JPMorgan): How do recent rate moves affect transaction structure, buyers, sellers, and lenders? Also, can you capture attractive rate floors now and are those floors a contentious deal point?
A: Management said acquisition activity has dropped because buyers and sellers are farther apart. The portfolio is newly originated—about 80% of multifamily exposure is from 2024 and later—and many loans have interest rate caps. They also said rate floors have been creeping up from roughly 2.5%-3%, and CRE CLO funding costs are about 25 basis points wider, which can widen loan spreads.
"I think first, what we see within our portfolio, I'd say more locally across our integrated debt and equity business is that the first order here has just been, I think a continued drop in acquisition activity." — Doug Bouquard (CEO)
Originations pipeline and leverage targets
Q (Tom Catherwood · BTIG): Has the forward origination pipeline slowed overall or in specific asset classes given higher rates? Do you expect originations to more closely match repayments now that you are near leverage targets?
A: They said the pipeline remains strong and there is still a large need for capital in real estate lending, especially in multifamily and industrial. The time from signing to closing has lengthened and new acquisitions are few. As they approach target leverage, originations will be more one-in, one-out, which adds stability.
"I would say that what we have seen in terms of just our pipeline is there remains still a tremendous need for capital within real estate lending broadly, and then specifically within multi and industrial, which is where we focus." — Doug Bouquard (CEO)
Foreclosure and loan modification details
Q (Chris Muller · Citizens Capital): Why did the loan move quickly from a rating of four to foreclosure and is the 27% discount to par a market or property issue? Also, provide details on the modified multifamily loan: prior rating, location, and reason for modification.
A: They said the foreclosure was idiosyncratic and tied to that specific property and borrower; the borrower under-invested and the market was weak, and the plan is to stabilize the property and potentially sell it. For the modified loan, they said it is in a Sunbelt market, experienced a migration-driven spike in vacancy, and the modification was to provide a footing and a plan to restabilize.
"This conversion to REO was, again, very idiosyncratic, specific to the property, less to do with kind of what we are seeing broadly." — Doug Bouquard (CEO)
Legacy loans, maturities, and spread changes
Q (Gabe Poggi · Raymond James): How will you handle older vintage or soon-to-mature loans on your books? And how have wider CRE CLO spreads affected lending spreads across sectors like multifamily, industrial, and office?
A: They said their CECL reserves and risk ratings guide how they manage legacy loans, and they will work with borrowers who remain committed when LTVs have substantial discounts. They highlighted their liability structure—85% non-mark-to-market, match term, long duration—gives flexibility. On spreads, class A-plus multifamily loan spreads are roughly 15 to 30 basis points wider, class B/C spreads have widened more (about 25 to 50 basis points), industrial has been resilient, and they often pass on office and similar deals.
"When you look at our liability structure, 85% of that currently is non-mark-to-market." — Doug Bouquard (CEO)