MMA Capital (Trading Symbol(s) MMAC MMAC) 10 Nov 172017 Q3 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to the MMA Capital Management LLC Third Quarter of 2017 Financial Results and Business Update Conference Call. My name is Rocco and I will be your coordinator today. At this time, all participants are in a listen-only mode.

We will facilitate a question-and-answer session at the end of this conference call.

Some comments today will include forward-looking statements regarding future events and projections of financial performance of MMA Capital Management, which are based on current expectations. actual to the and Securities these Company’s Commission could subject those which and forward-looking are materially that in differ identified filings cause statements. comments significant expressed uncertainties, risks include Exchange from These those to in results with the in The undertakes contained to statements. of the update Company forward-looking any obligation information no the

LLC. to a MMA to turn like reminder, would I now of today’s As CEO call conference Mr. over recorded. Capital Falcone call Management will be Michael the

business which efforts Good and from and our both Overall, Dave everyone quarter in primarily driven share is increase of today and me purpose and returns income detail represents with of The respect $XX.XX, from President, real shareholders' forward. prepared reductions the including Rocco. of impact will share. which X.X% we With which equity update our credit an of you, shareholders' quarter, some $XX an per value the our Bjarnason, share insights during housing and XXXX in review low reflects book to our Thank per to remarks, million investments moving common the lines $X.X raising equity, tax or partially the $XXX.X Dave income additional Mentesana. third of Dave book increase South to call morning we review buybacks. that $X.X X.X% provide third is which plan positive The results $X.XX our on driven of be Chief Diluted how Africa. net business on the quarter. were an the our million income With or equity, welcome. and quarter see we in per will Gary today common events investor third Executive deliver results, share ended or common available will call at to comprehensive are our overall book after million million questions. estate realization I our value reflects capital to our in we of into later, recognized by Officer; Financial the Vice value was take which and quarter came increase by business buyback during that quarter other by the from performance offset in

from the of a saw As result, increases assets, unconsolidated $XX.X and this income, months while in we and gains book to in derivatives ventures first we and income nine share. equity year, recognized value $X.XX increase In adding fee extinguishment. debt quarter-over-quarter shareholders other on a net per and funds and equity, common million

towards shareholders' During which common $X.X per the we a XXXX buyback of authorization XX,XXX our caused purchased quarter, price share, average equity. $XX.XX approximately an in reduction million at shares

our LIHTC With the saw growth our portfolio, the our for quarter and as coming XX-Q, business we quarter returns bond of broadly, Across lending price in Form saw increases $XX.XX. continue platform experienced energy operations perform filing more third limit our U.S. our continued the to to from expected. line positive buyback

there for at various investments average entered to we of principal our the pool tax bonds declined due collateralized that The bond bond rate weighted objectives municipal as our full our three but debt portfolio balance we the a the line, in position bonds further that the full high non-profit exceed holdings in great business portfolio result two quarter. to of while months a defaults financed no service the level, large bond we exempt were in by in $X.X year redemption projects. coverage are million leveraged As of quarter a third the of new the that year, inflection were of to a increased set third part continues leveraged Within perform final performance our ourselves.

in two have that softening Additionally, market. going the to of relate past, concern discussed given infrastructure the as to Spanish bonds retail forward the we be Fort [Indiscernible] continued

investments recognized in a we consistently have in performed bond million value uncertainty their with increased contractual these in fair portfolio associated such third the these value the the in with whole. net investments market While by we of payments the quarter terms, bonds offset support are value decrease light leveraged from third of affordable quarter fair value on that Fort budgeted quarter million two on Spanish that net debt rates on In recognized and case, income $XXX,XXX in Nonetheless, a this gains a fair sales with bond tax marking as certain multi-family operating tax exempt of fair favorable our the of third service positions $X.X revenues to gain investments. our the than properties reported bond than bond more discount net loss at combined higher quarter supports we we’ve end. recognized investments $X.X that given

continued Our exceed meet to LIHTC business our or expectations.

our long-term. result our as transactions I validated regard, will quarter associated $X meet we this underwriting the of to our Fund TC on asset capital transaction I and third Additional Fund revenue. recognized and the initial million closed continues over a or In exceed GE we the believe in of returns be with also expectations investments management TC that fee

the large $XX timing because revenue that by Capital our $XX.X loans control, However, through we Energy business, XX, $XXX.X the $XX.X in million increase the $XX.X our ventures continue the lumpy. of generally carrying sold September million income headwind, a of was up be the we driven that equity will are stable River third quarter Within million the Lending relatively were such funded point as – was and weakened our that that dollar. Solar transactions partnership held quarter, in the beyond value part million Savannah capital recognized This quarter to UPB to economy made entities investments development respect the or With is the from June such LLC million The likely by $X.X third third while to last capital in net was related worth solar was the to Development Rand equity operations operations, result recognition SDL. contribution the International but in through relative noting real in estate. from while Landing XX. remains million U.S. at U.S. the South was in at future African of a and

the the operations investors regard, final Fund Fund [Indiscernible] into we in potential Africa the investor from are other additional in quarter continued the our internal million In quarter $XX.X SA while of for capital-raising their performed capital this in X. of stages Our mainly efforts South well third II review. in closed

for from approximately million. IHS I Fund purchased investor that in Additionally, another interest ownership XX.XX% $XX.X in an Fund

to substantial in we’ve II nearly ten fund fund. XXXX portion with with in part initial front the the conditions includes this such management continues proceeds investment committed business units by manages managed years third-party’s the under investor busy invest original the management third-party’s to that the into but I IHS, from not which IHS As property commitment to and property the the the our investment Fund management. of close of [Indiscernible] ownership Africa, IHS grow that in govern of to IHS are Fund to same IHS transaction been purchase Fund receipts II a funds South business of Operationally, the a on date within limited

fund capital the initial that prior fund on across internalization our discussed made operations by occupancy management is in the closer maturity the in Fund has the As towards continues properties funds manage deploying The with investments. in to South improved property and opportunities [Indiscernible] significant calls, II investments Africa. function we investment improvements getting

Exchange. As assets prior discussed that including the for exit we to African we I and of Johannesburg is on the on the as certain potential the Fund Transcend, a to public continue manage calls, that caps South AltX traded monitor market REIT Stock

discounted from $X.X turn a $XX of executed approximately corporate subordinated in extinguishment financial resulted we million operations highlights. Lastly, it’s we of gain. debt XX, call a September the debt million expenses Dave had which relative to subordinated With the a to - outstanding. perspective, that, At over still time $X Dave? for million purchase

Thank you, and good morning everyone. Mike

of Form X overview item an our I’ll results, in to our tables provide various I of XX-Q. As refer

income, X compared shareholders’ of shareholders’ our an reductions increased provides located $X.X million filing As Table the while other driven by equity the which in or From the share was and quarter comprehensive recognized equity. $XX.XX can equity. $XXX.X in income on reported million see XX. net since common June share what you shareholders’ equity increased were book of Page to the XX the $X.XX $X.X shareholders’ $XXX,XXX and $X.X Mike in in we increased million common of that value increase third is other by which million to of other of quarter. income million income approximately third million table we changes quarter common net to in that per common in comprehensive partially per Comprehensive offset the that sum attribution reported per by income mentioned, share, of $X.X $X.X up second

As on fees, were primarily income Fee $X.X increase and in II, income. key gains improved and the there management recognized I’ll behind other quarter-over-quarter net S.A. interest by the in capital second of catch-up comprehensive profits third into quarter recognition our third hedge estate discuss three suite increased a net due quarter. in Fund the investor on from closing quarter million, while asset more additional positions of in of that which to amounts that detail, in IHS drivers net to the we’ve rate that this secondly, losses increased we certain real basis investments the fair million compared recognized $X.X gains decreased we recognized as value sale

$X.X owned Lastly, equity income a maintains XX% the that we which investments a of sale the primarily in which investees equity million recognition had of a by increased the $X.X of company third a of land equity was result in as income interest, quarter. from partnership and which million prompted

increase more other fair in million compared increases in of bond these to the portfolio. having look our interest a starting activities salaries the and was of detail in performance primary unchanged expenses in and what which ventures quarter from $X.X fees a and equity I’ll quarter, business impacts. the reported modest returns professional Otherwise, second relatively our operating our in bond benefits, $X.X is the speak these income positive a Net drivers solar value leveraged with of continued in our see However, results softened reported reported key with tied and we and from each at we the portfolio. third expenses we now to increase and to income ventures. associated financing million

account investments. a million in we value bond of bond From we are bond marking associated sheet, the losses both by balance as our positions, tax Mike mentioned decline neutral to in In in to investments related a with net reported of our equity partially we total related $X.X recognized recognized when we quarter in return to quarter. was third leveraged portfolio third offset of we $X.X value infrastructure $X.X swaps market value primarily net quarter. quarter multi-family of decrease adjustments, that fair or balance I during such the recognized our net reported bond on our investments The perspective, $XXX,XXX our bond pay the Fort bond that million second million in in as $XXX.X approximately third $XXX,XXX earlier. are Spanish which annual revenues whose at gains to should income fair line, in reported the In in investments directly payments tax comparison, second fair principal sheet, the quarter the yield balance other for our available interest fair leveraged infrastructure multi-family Excluding With a and/or in exempt that gains recognized derivatives. regard, this the of value million to by which which an decline subject investments tax own equity bonds cash subordinated exempt secure UPB year to $X.X flow. by represented on $XXX,XXX respect also second in cash due mid-payments decreased mention the partner to on our we land business approximately driven investments. the recognized one flow, quarter incremental what of parcel compared decrease interest investments each bond to venture the bond – million was sheet we received downs of paying in

of reported $XXX,XXX income investments total that fair returns equity was returns to and River respect Mike sold as of to we respect the to second $X.X negligible compared million that group quarter rate Energy these interest million third As to fair approximately manage. sub-portfolio. Solar losses other $XXX respect of Savannah and $XX declined recognized investments certain other group carrying interest return assets these we partnership value the a continue adjustments in investments, $XXX,XXX to the in Landing pay quarter, our $XXX $X.X XX, the by were during instruments Capital recognized to the a recognized Development third to offset net of UPB we the had second and fair With that decrease recognized a and September business, quarter which of the on the the up of part from this from on quarter. carrying mentioned, we With XX. September $XX losses June investment overall downs loans million. swaps. in positive the of Ventures see was represents we million XXth second June value comparison, since to These changes quarter quarter for million company, the Mark-to-market the what in value short-term net at by result from million this the that declined in cash, result taxes of approximately quarter and we Related principal was distributable bond $XX.X compared quarter. million third about million the of in held value $X.X XX. large investments, at at by third $XXX,XXX hedge ventures we With In performing income while from which third value the of in the including positions, multi-family investments in

quarter fees we construction second earned million the amounts the of recognized part large at had these in was value in investment income a third quarter decrease in $XX.X ventures, by we Ventures a to September by equity compared that represented Solar of solar Our decrease origination a carrying $XXX,XXX In million from $X.X driven which recognized XX. which the in lending.

$XXX,XXX third obligations recognized with associated filing associated cost the income interests that further we for approximately also interests direct management to management-related With various in We third this for of I associated quarter we business the fees in obligations capital line. and our In activities. returns in our connection quarter our business, the allocatable on of Fund with mentioned, recognized from with pertain as basis ventures and asset reimbursements the in Mike in set TC million and proceeds discussed $X the to transactions. from of of with respect LIHTC our our share

other amortization in base that with that third with recognized respect the approximately increase in other and MGM. about $XXX,XXX of related we in collected Morrison also made through of guarantee this associated deferred we million interest recognized TC LIHTC loan income We that the The repayment quarter. to in second to Fund that quarter Growth we amount in compared mandatory represented our at loan with the a interest about subordinated make of to of or and of $XXX,XXX I connection a $XX obligations we associated third MGM, case fees $XXX,XXX guarantee-related recognized the income we With the Management our guarantees. quarter

because recognized business LIHTC our this the we not statement investment that is investments line, connection estate estate in million attributable deferred the However, sale not that Therefore financial reported income the balance earnings. which real to our of for last the recognized is we quarter, In of sheet. direct in GE primarily purposes, a recognized loan $X.X interest on third gain it’s collect direct from of transaction. we from real is with

a equity the allocated our the respect or connection which Bond equity In quarter to fees Solutions on recognized funds million third IHS, investments loss by Additionally, increase Housing bonds on in third reported $XXX,XXX These closed a is in in recognized which and into LIHTC which primarily as using through I and are Page $XX.X increase a of that our for With for $XX.X of which relate we guaranteed fee profit $XXX,XXX which co-investments value second manage in managed XX these general are reported compared we additional consolidated relatively is from of quarter a recognition with in basis. third that attributable approximately bond that of we million other the that of asset primarily quarter in lower-tier and increased our from we includes a $XXX,XXX amounts to as an eliminated IHS, while investments result equity in quarter, quarter-over-quarter Mike book third discussed but quarter. was quarter we tier what funds Fund primarily method, catch-up partnerships entities million was the fees, which in XX, located account netted This investor net income on reporting capital to the which and partner, at that allocations Table equity profit filing, third and property IHS income million tab on $XX by management the four XSA third as quarter. XX, the co-investment the we that are size the which the in loss equity and quarter-over-quarter in was the income to International $X lower interest to we increased of of approximately of guarantee having September earlier. partnerships, losses represents unchanged purposes. on basis $XXX,XXX

let recognized of briefly our operating interest of in quarter, other we touch and on cost expenses that In funding. terms the me third

to the recognized amortization respect quarter. what assets interest-bearing this which $XXX,XXX we third obligation Debt million associated debt in that other You debt, a debt We $XX we based our September in activities which are refer interest refer asset-related as and to modest at asset-related negligible expense finance their that and into to third bond XX divided with the company, as the financing from approximately debt we debt. other the of With which filing while quarter. was arrangements our can represents in to quarter that other UPB, obligations and the compared purpose. assets asset-related debt occurred as on see increase but groups finance of recognize two second

third we quarter. cost second reported to reported $X $XXX,XXX in million quarter, funding attributable with UPB of in debt. subordinated other decrease our of such a the debt than $X decrease million Our is executed debt is of quarter, the In was the obligations. income of the third million subordinated which primarily in the company what essentially less UPB This net gain a discounted extinguishment and in of with the purchase resulting $X.X in

in these respect operating $XX.X temporary common quarter. we due recognized well another we against increase in investments. as weakened net increased The of well dollar, accrual administrative tied salaries with the Professional we one in stock fees increase advisory expenses, with to benefits, as valuation incremental third and $X.X charge $X.X fees professional such of the and the expenses second as the million Lastly, the as other a foreign as in includes and recognized shares, in result because impairment infrastructure increased compared were which $X.X related quarter by expense which other benefits expenses, increased million that that while losses expenses salaries compensation. our to increase expenses, company to core rendered million quarter, Rand various to the factors, services in part recognized our impart an third general and also in to our million exchange by increase, expense caused bond due incentive legal, in due to price to and several as amount the of was compensation an of the to

including our back material design touch nine spreadsheets call followed to advancing as in related Mike, our change information turning briefly executed by our with and improvements Before implementation the assumptions validation additional In our to weakness evidence as year, steps in standard I implementation the the the personnel that Item related in we remediate to steps are in in important our of data clearly efforts are the [Indiscernible] of further took third Specific spreadsheets, X company in columns on of to the described in first well of wanted the to filing. to quarter, spreadsheets. over months and to connection the of several over to controls used that be we the

we in investors are to company’s will next made has Mike. call. enhancements believe back subject implemented management our and With update by turn provide fellow the testing remediation evaluation I to all progress Nonetheless, at Although another that, plan continued will by I our and over executing call significant accountants. the been

the at the continued capital of this expensive income environment. Overall, of talking repeat In calls, in the investment stack recognition to uncertainty view we focus in in year-to-date Dave. investment focusing management quarters broad quarter obligations second discount. business I the renewable maximizing quarter our spend few the in Thanks, and about management strokes, core energy of a the minutes with in retirement lines, multiple in business lending while into prior the fee business of want value more growing a additional on Consistent to our during business space LIHTC additional performance cash energy including the our our our continue ahead. activity to the renewable given current the disciplined and on has

affordable we quarter a from business ability plan over Continuous the the to more in third expect the As interest time. to the significant those and additional recognition forward. from value income realize year. investments both real consolidated result, provided on are to help going monetize our the heavily underlying internal that estate housing second process In our growth returns in our for based exceed now terms, detailed

Final plan capital to of respect lending pipeline energy return. buybacks. put multiple at to lending work with share the of robust attractive we business opportunities rates the the Additionally, ongoing to solar is in position review platforms to across continue significant of item and note

of a for Board current authorization XXX,XXX capital the of the our above the which price book and company company. value stands even this As use XXXX share of is middle feels currently a market the remains as Management in at good buyback it by

that Given impact couple years. ways exist our we number in that business tax of the a In legislation for have from of financing. to changes policy rate of approach caution than more periods fiscal the uncertainty ahead to to the ongoing the vein, in today, could previous use private equity with and continue tax scheduled the debate bonds LIHTC we

agile protect or to with to conditions and deploy while will opportunistically seen opportunities our as in process, As it in hope additional higher have we position that early should retention We conditions. at additional changing uncertainty plan underwriting themselves remains we certainly would meeting due they comment than a position The market our that legislation present market to allow previous the how risk cash our to us standards. on are simply this impact not years. This to any individual to is cash of remain elements business. to maintain quickly, capital reinforces our in balances still

our not change that work strategic been hard and create in our more believe day to from does we Before company through landscape than remain other asset investments current just business share combination for questions focused our shareholders. commitment callers, I take we uncertainty platforms, of in uncertain the growth on of reiterate time. the We the business share improving some buybacks, to But it the opportunities. a that strategic our our fee-based that value and every is per of wanted has to value

you future, committed the we to remain about excited shareholders your are support. for We thank our and

for will We the Operator? questions. open now call

Instructions] We Consulting. go will ahead. the MACRO now of comes Question-and-Answer Session. first And Please today’s from [Operator begin Gary question Ribe

David. Hi, Mike. Hi,

are Hi, Gary. you? How

doing? you are how Good, guys

you. thank Fine,

going guess quarter stuff. had looks things mentioned. questions guess are with was this, I it I guess, the in questions. business. I If activity good. kind on am different two of of real had uptick a that I’ll Good, pretty like like well I looking at have. which you various there the in a I I It couple different the looks aspects start solar

of venture joint TPG that for $XXX the that you I million guess, that in For of loans REL, in have venture. are guys class for like kind loans

from maybe think I of is outside million former partner so. it or of it, some $XX a that’s

Yes.

Okay.

million, total exposure is And so, $XXX the Gary.

Of into that’s outside of $XX invested which that we closed of that million about venture we that this invested and of have in then equity made because increased DL quarter. by have money that worth also and co-investments $XX approximately venture that million

and you Yes, is? see. guys so, that a to guess SDL that’s where you breakdown, guys go a the million and if of that you guess, I kind in page, that put I was then, I $XXX where you asset and XX give contribution XXX, is have there

Correct.

reflective else. to this other Okay. Can I on venture, appetite question types somebody it’s make – be these it maybe to is part of but of was on change The think initially your and ask a increased you just, you for from when investors’ that putting XX-XX an form loans? of type supposed it’s TPG, that I up $X.XX a $X.XX,

big a Fundamental I Advisors. ago, we done between brought into and we we can try [Indiscernible] like. subsequently, details us as do Originally, And into and to together that in year about to give solar then, picture the XX-XX kind you we of the that. venture dial the TPG put

our in until have had capital quarter, But was had Fundamental SDL volume Initially, case the additional in XX-XX The safely of and that we did that XX%. a TPG XX% then, energy of we needed in third the in it relationship. up venture. was in capital Typically, third quarter of SDL. So half the been at investors other gone investor million nominal a SPL increase in as SDL result pool renewable all XX-XX with asset that a to into Fundamental the within TPG in would we investor. as we due were long the in a has – are time. with did put only MMA $XX and and They and TPG

Okay.

put And by thought largely Fundamental the if upon put we XX% two up much the cash is full to the we too that driven XX%. put stress up of two, and our was size opportunity, One, factors. willing us balances,

it XX-XX the is been could for felt It where XX. So, us. comfortable a of sort

that, what there those it in is certain I is we’ll over likely flexibility think a continue time. that demonstrates arrangements

Okay. Got it.

is, So million in $XX went the if so, quarter? that REL in XXX you million, I TPG Fundamental, saying guys right like $XXX I recall, there to million I think of or so am and in have that $XX is

XX% of the million. has $XXX Fundamental

Okay.

have TPG and million $XX And TPG about in has venture then, invested we today. and the balance

Okay.

So from is Fundamental then? much of the increase

Correct.

been all $XXX has not Gary, million So, so far. drawn of the

Okay.

number up. is ramping the kind number of if Right now, our TPG is fixed will, you and

I see.

they different when have this entity of end-game like kind BDCs that [Indiscernible]? have number have you for and a IPOed an here assuming especially things TPG, that So, of is they

We game beginning that that game entity, of entity. the the of at in at the in [Indiscernible] are end the not

know additional you I they kind [Indiscernible], So, public there. is the markets all Whether private really better don’t plan an whether Certainly exit, what right. markets thought will in we getting or what will we capital, – exit. active need is a of described will whether through are capital that that need whether we is possible off we

that we’ll for as source in become I figure about the figuring the fair sit ultimately a a the there. exit answer out out plenty of we the at time process appetite capital we the of of ramping thinking sort much much think, have a what time what’s right are are think that now, our But partnership [Indiscernible] we cheapest of question long-term that still here today, capital, and on capital price really business exit; capital focused and we is. for are what more is ramping to and up we up

simple as as It’s be class will assets. could credit as asset IHS the I And a reasonably longer be transact, and loans having exit if exit year think, you assets short-term right, are we add, anticipated here perm less if short-term equity. out a to contemplating maybe the than in a than these mature. largely bond may this for that is out, not The to loans. And we take is little [Indiscernible] tax need the take different to be dated

for out not the So, sure just these that I existing capital not to you, loans. to invested short-term we need stack as if in reasonably clear take to want it’s it’s make

pretty understand, was what a but it I ramp – ramp. was the strong Okay.

would was to and the was will money you of plan exempt more so so think surprising. house stuff, out Solar plans. another tax it least kicked pleasantly five at [Indiscernible] mostly I tax people’s the to be but or So, they I of part thought mentioned I other it I as seeing say, expect years – that

So, probably still. around, appetite if more even that’s have hanging you’ll

to Yes, of and have in I what’s think, we kind idea to to the try point, happening want this I Washington no event don’t speculate. at road down

in got know I don’t what for just I think it’s worth. they Yes, either there.

Okay.

a So, couple questions. other I have did

South the On in property other the of African you brought the stuff, you guys established. that manager XX%

Yes. [Indiscernible]?

to you guys what paid that? curious Just

third paid… of Let’s completed Page on X you’ll the that transaction see, our filing, in quarter that we and note we

XXX.

and and can XXX talk XX, on in Page XX you we looks equity, on change. It’s a what we in Page about quarter. other on see seven yes, about changes paid [Indiscernible] like

is ballpark but I great. fine, don’t think Okay. That’s that…

Yes.

to you of interesting. funds there you hold not going of guess, it are or doing with is I to thousand these kind whatever dollar what is. nearest am the I

I am, about managing a into and then kind them from activity. a Is if that way that also think externally dropping you and by of So property summarizing unwinding funds fair managing it? are to these them REIT

is about think it. a It to fair way

or over could that X to as could is? Is a whatever template that for handle potentially something of how you guys years potentially next that do? you the properties they come LIHTC the kind it X Is off

it. about thought I

Now is the term margin.

a I we’ll that explore idea the for bit. context ought an certainly you a to the be an issue It’s that make capital think of capital we partners. little the in interesting markets to give proposition U.S. whether that, is part might scale of to

direct We business. what in control are assets in in you are if not of African LIHTC happens the South with business the the

seller So than Whether years. aberration that’s aberration, But, be been been buyers. think one U.S. in the will strategy issues. what think be the rate is an ten this that’s environment cap for has there certain a environment, low of our – of now view I kind will rate of today I exceedingly we cap

So exit. one currently. at any contemplating are maybe does not you some more. sort And some point, It’s the reflect of it’s aberration an not that

the kind affect private like mostly that that again it. And, with your that disseminated way? would would activity bonds bonds to that existing refinance it. mostly, of credit and Got Got the that away ability these up

Correct.

Okay.

new would it new restrict on a definitions It on and lot the of put issue would written, limits currently depending as issuance refundings. of

So…

And then these take you more properties just push rate? and make them market

on have it take Fannie to take covenants it around would Typically, taxable like Freddie what might depends we the - out. it properties. of a on It the sort the those land

Got interesting. it. That’s

for else me of it questions. more think, somebody Okay. kind jump being. one guys. and I back that’s No, for I’ll me have let the that’s now. time right Thanks I escapes ask

Gary. Thanks,

in. to [Operator would questions do apologize, Instructions] we’ve – someone Showing like jumped got I no I just turn further

Our of go Stanley. next Stanley Please Morgan from ahead. comes question [Indiscernible]

Good long-term various How question, I planning products different you entities these morning circumstances? [Indiscernible] you one have are. the under basic of different the all do do gentlemen. [Indiscernible]

up broke there. You

I so is. And what going I question am think to the repeat

out, the that’s be if call we longer don’t circumstance, bond I that think the think that indirect sometimes do planning line, the the project I basically the simplest think date, presume we question complexity – able to refinance we way for is in the until entities answer date, and we reasonable when the do of the of call the first long-term of complexity is, sort we do The sort may can us In easiest we of sort to this that hold out. was, do refinanced be that’s sort business by manage direct that ownership. ownership, to business, planning? first it the the place the of to our and borrower of about and we that will how it. let’s think that bonds But typically given

on On on all general And various generally don’t but control We can’t partners side, manage with buy sales sort it’s and the which bull have that that we From by interests of year, in understanding we can that. credit of LIHTC sale real What schedule of are do estate them little of time. most working of we the a can toward underlying the the the and the that of dialogue next direct predict are end. closely when sort be be quarter based on what very periods to sense out able what have and picking something we started it, third the might this of XX over, based going talking turnaround we sale dependent partners sales, business. the of we are such who we the are months process time-to-time, sort to have and on there. their sort manage sort horns can of generally we properties the like we more to actual ourselves process, then the on with kind might take LIHTC developer of in know the next and in that the national sort better. a But relationships our do typically, just we the are

we are of and model. eligible we if know is property which talking So, have it’s largely we models that the model – it know, every to largely an that track function of in are sales, a be sold way every have when underlying so value and that things underlying and out we partners about interest those not a which we just about we to

five a the do and we income of of science. part are until there be XXXX, here the some problem to but going way of real of you pile So a and have out sold sense to what in these underlying estate is, of today, more That’s is can’t XXXX. art cap sit trying and years number what things as we is, project rate pick

the involved So is art sort have this more a it that’s art long worse, and time significantly science. better or but a at of we’ve than been pretty for sense of

side, solar are, we construction said, are we Gary in the lending short-term the as business. On

loans So and as away capital change. flows change, could go markets as those

to I attractive permanent into think think are to loans. We flows ways, the be rates we’d certain just that some the that in such market. in loans like permanent us more doing aren’t capital

In planning traded of market it’s an existing Africa, has conditions the change. South two literally we is going could long-term burn that fund, profitability sort sort be business a of stability for your It’s long-term you could short-term – elements. what stream is fund. if of the for fee over and kind that context something So know off months that XX to of really in that

those predict is of see those of are we not in what So of predict that fees fees. going that it’s relatively incentive terms easy and basically to we kinds fees any to

to there up going account be capital new up and or January the they of we funds year sort funds So is, maybe would And variable got the sorts all we is end behind it into is growth the next question We’ve our raising we And we’ve upside, grow question those or of Can now sub-debt right long-term closing we and that. on look then, particularly of where ramping up something grow it are a Our they interesting sort organization costs, capital really or the all much. lean left accretive, that that, to raising that are of on question? operating REIT, change of two. you will rolling show of debt they a at XX-ish don’t quickly we when ramp what’s which and relates not LIBOR got by over and XXX. as of years plus positive expenses then, relatively can we think that’s sort are that’s when our base sort on. sort the how public

and generally next which – – ways of various into costs model. after looking period had most out the terms inform closely model long-term are we looking we we do that. next what But we our various we’ve it, five So sort at of years five project then doing kind years the over LIBOR modeled are to of

are and starting of process obviously budget detailed XXXX. and a planning have just we business We goals for that annual annual XXXX for

you much you. to guys figure company go do you the making in you Thank wait bet, just out. a Can bets? detail. soon evaluating Thank you for I’ll it the long-term how [Indiscernible] could to manage So will for and big it. advance you the due well may trouble help very

money. shareholders bit good time ourselves we thinking for And defaulted simplification to a spend to do and of simpler to of and money. we that, part that in easier at making say and constantly more strategically try worse, make making for But simpler the find is and the happen. ways are looking about between money have we would getting business sometimes understand or making I understand more better attention we more that Well, making to we

Financial of Valley And ahead. next our Ted Lou Group. from today Please question comes go

Good comment on the… morning everyone. Could you

morning, Good Ted.

current level the you morning. Good of NOL? comment the on Could

less one valuable. we which what But of corporate that But – at it of answers unreserving is $XXX on with minus positive balance could It’s sort happens the end which million our impacts or NOL. of make that all that reserved probably, least all this some in expire, quite the fully different sorts that on It’s there Obviously, in use taxes is it could reserved. around NOL. on is of expect we’ll case, cut have to tax A continue NOL is the up amount has language high. to will some We’d the this for not reading is it year. sheet. the of – use NOL year. total bar plus and depending the will remain That

would have So, forward. we it impact a but as might view of I the that our reserve – have a just we don’t – – as impact can think that it go positive

Thank you.

to there. That’s determined be

ahead. Zenith question next our go Morgan Stanley. Greg comes today Please of from And

Good morning, Mike.

Good Greg. morning, How are you?

Good.

commentary in So, the you is, credit said, sell periods with modeled partner end credit actually dividing period about and the and talking – out. about are decided first credit, the about up you partnerships, general when the in business your got the to as you of life experienced and that of that you’ve tax assets? that I are recent question the the has – guess, the the LIHTC businesses are

way, twelve you do partnerships in Megan, or Gary would speaking, Generally say the last how that many we’ve exited months? know I

or directly property XX, about openings. Either partnership probably I, a through TP Fund lower-tier

happens all a at time. it so Yes,

XX is Megan’s partnerships know, gotten she we’ve proceeds runs there guess it’s she about probably exited. probably of out part that. has – because meaningful business, something about we’ve would like ten, So that been of and the in Of those,

the a the to around is exits. some a portion, most out We, a hung it time, the significant economic event. while chance time, all money now. the of yes, it seems much projects or like had so, for XX% happening for of sort some meaningless those numbers And make of But it’s on

you or XXXX, you eligible to to going how not. is a be guess, conversation they I are to necessity, XXXX of looking you said, say, a So, are about XXXX forward usually like have in must – many sell start marker whether you a

there we or number you money mean, you when and how to maturity a total So, properties involved about business maturity, not, that things make but knowing bond at it’s a whether Whether you don’t you least, – point made. it Is next that. if partner I a going over think the control the are of number about could eligible. of think a schedule be have any if general several view, of the – is I over sell you many? are know, do these analysis going share are or before to shareholder way not, years to there can where because partnerships seems me, is from

number. XXX-ish is I think the

– break receive were rest some of I shareholders, – the XX% more So, XX out you got XX, happened this the year you and for the money nothing. are mean,

Correct

so, ten for, the five or out that as if year whether or sometime going is there it’s years from to while it is there – that another years know more be goes and that, monetization next Yes, be nice – seems over XXX would opportunity for it received that? have – to of is a to there there that, is there or there by something it you are more partnerships

broom in is zero because any have problem through – is it, XXX guess, to the a broadest I that year. say, of think don’t true, sort to in we call number we and that bit math, just of from this the a just as

sort trying opportunity. think well of be is, over the there to you from that is counterargument be most I more we zero you residual is think, As XXX, tell able where there we opportunity that to would okay, to to prioritize time. will to go we certainly deal going

So we’ve the in those at we because a been – that, okay, looking just this is into deal, of deal so unlike rate course, how do XXXX so, XXXX attractive. environment we cap that turn sort as deals a and normal we saying take

right, standard that the did understand information. So, the being the out of We predict for and to much information to – information so like of desire future the context, put you of instinct sort of us how about into able the certainly that. that’s doesn’t and much future the hard predicting sort that public it kind markets, to figure create because the is to so GAAP sort is passes of do – SOX just it’s about that out in I of for the

XXXX eligible right, you did that that because…? One another Is move it a question, is of you XXXX. to XXXX have hear kind said, to deal, in – it you be up and I sold are

asset of kind thing yes. do we The in management,

the How do – period? do aren’t credit or in to the you get the the until of stay investors to obligated general that that they end partner don’t

will the period he and five buy retire in LPs, LP that the So, the and once the of have number in the transactions of of – get recapture sell the as ton interest the attractive place are year lot variants more credit there. And a then there any to period. burn-off could just losses. like GPs wants hanging gone, a maybe interest interest stays us we because be end period, out in we’ll is things GP the don’t because and that to when at and LPs there get the do out various are make reducing the it go in, of can so off go credits But to a

very right. Thank All Okay. you much.

I conference for no management would to back like over Showing any the final further the Instructions] [Operator team turn remarks. questions, to

Okay. thank Thanks our their all shareholders Rocco. Again, just want of to for support.

position this that on so by more had backs But a been our the hard had – working protected. certainly advantage winds and macroeconomic wind bit – a the for remember the while trying we good also to at that. that that quarter. all environment are we’ve performance important of performance change, if to We’ve driven we obviously I we are are of take this We is think now. the pleased ourselves, But with it’s

your appreciate we So, support.

happy We really, until next we’ll we and guess, with the everybody again season year of the talking to are wish excited I about future and end upcoming into up the call. guess, and holiday March, a be I the

through So, Investor our thank you questions might Relations happy very all any answer you. we anybody much Thank and are to line. have

sir. concludes for all We presentation. call. today’s you And attending today's thank you thank This conference

You may lines and now a disconnect day. have wonderful your