Safehold (SAFE) 1 Aug 232023 Q2 Earnings call transcript

Good afternoon, and welcome to Safehold’s Second Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, today’s conference is being recorded.

At this time, for opening remarks and introductions, I would like to turn the conference over to Pearse Hoffmann, Senior Vice President of Capital Markets and Investor Relations. Please go ahead, sir.

Good afternoon, everyone. us Safehold’s joining call. for you today earnings for Thank

Brett Sugarman, we Chief and On Officer. and today, Jay Chief Chief Chairman Officer; President the call Alvarado, have and Financial Marcos Executive Investment Asnas, Officer;

X:XX a afternoon, call on our quarter Eastern found the the There details p.m. on Investors This presentation website beginning at can be The second plan link. of through XXXX with to The a replay we XXXXX. today. safeholdinc.com conference that dial-in presentation is our replay results. at a of be this walk code by confirmation Time will clicking for XXX-XXX-XXXX

Before I forward-looking. this to in earnings like turn call, which I’d historical the be over Jay, are everyone may statements to remind that not call facts,

from our by expressly SEC to Safehold or may statements, could update statements, actual forward-looking these that factors intent as differ and reports. in these required risk Our differences detailed forward-looking law. obligation cause materially these disclaims any are the results except

I’d Jay Sugarman. Now with CEO, Chairman like to over that, Jay? and it turn to

to Pearse, today. joining for Thanks, us everyone thanks

ground and product modern with look our for to continue rates lines. behind this the The remains liquidity help With and now making of and customers banks difficult. tougher building normal still customers access opportunity But pipeline the capital us focusing we environment. merger higher across transactions ways second needs our from an capital quarter begin deal constrained a to higher higher the rate begin in more was all on cap than rates, our market lease to our

in take introduction, and more short Marcos detail. that Brett with us through And have the quarter Marcos? let’s

afternoon good and Jay, you everyone. Thank

X. Slide on begin Let’s

and see quarter, investments we uptick growth. started During portfolio slight new a the second to in activity

estate real highs. overall, with While the capital markets far dislocated off volumes remain the

our we’re pipeline. where a momentum in difficult solution this by pockets constructive see encouraged our environment is ground and lease capital to the beginning We’re in

against in developments the Fed’s We’re inflation. to broadly positive see pleased also fight

our the hard in of lease and capture stock hit months. inflation long-term liabilities XX the our highlight to Caret, over our value past structure, been continue we’ll While the has price

respond We historic investors in be we believe to regard customers cycle without the this see start will capital of and long-term their our delayed our could portfolio. of to a as rates, we As headwinds value beneficiary end to tightening components decisions. at near-term Safehold our expect accelerate stability

restructuring significant The top amounts of on our to as within credit debt with of any leases. equity track and leasehold metrics continue not criteria And are of of assets key overall of XX%, coverage weighted and with we average about remains customers our portfolio of capital our and subordinate steady perform. GLTV income. The our principal The rent with times. that supporting well engaged we’re our today, X.X target tenants a

of quarter with deploy. and our announced have ended the joint front, in capital to the than started $XXX $XXX capital On through ability greater addition we venture, liquidity, previously million we more have which to million invest

will leading promote for earn As fee of in the with and a economics ground reminder, our sovereign upside. addition share a wealth the a venture potential owned we the XX% to additional lease of fund, management with

Slide snapshot for a portfolio quarter. our X growth provides the of

related $XX lease fund, commitments million. originated share which acquired the quarter ground $XXX $XX of existing that to in merger. ground leasehold the quarter, the totaling and XX% new million $XX new million the We funded loan our with during three During leases, associated with and we million we of

value. markets. across The into $XXX a three $XX with three million by our X.X% Safehold. originations of Caret Of and yield, or X.X% will inflation assuming These leases inflation million $XX average unique for new and a aforementioned were adjusted X% deal customers third multifamily weighted three wholly-owned consisted all closed generate properties two no the the million, new be transactions yield venture,

investment luxury plus financing, lease triggered sponsor to Downtown obtaining see XXX building the deal wholly-owned a on Brooklyn. reaching financing our closed pre-existing in commitment XX unit second leasehold was story was the ground contingent certain The apartment come upon despite a quarter purchase Safehold’s to a purchase nice headwinds. and It which construction commitment. that circle in full milestones including was the product

The coverage with a ground in our average of deals half three of associated two GLTV with credit metrics and XX% rate are these weighted with and line a targets times.

pushed the have with our dynamics work We’ll accordingly. spreads to have and in and up, pipeline. are our As both business continue that examine rates and recent our for pricing engagement pricing moved for pleased we customers

end quarter, the unrealized six estimated at of our $XX.X value approximately growth capital appreciation The years. over XX was last billion. leases above $X.X approximately the sitting representing the stood At our the ground portfolio billion, times aggregate of

million In keys square hotel X,XXX institutional total, the million feet commercial square over of of the office, comprised feet property approximately science million of XX.X quality multifamily, of UCA and and approximately types. of of estate, portfolio XX feet square XX,XXX units is life X real consisting other

to let go financials. it Brett? through the Brett And over that, turn with me to

Continuing Thank X, Marcos, results. our on earnings you, and me detail quarterly good Slide let afternoon, everyone.

differences both the or was merger costs. few safe pre-merger financials For the million, I looked quarter, second income and was to revenue will $XX.X $XX.X without million. per was $X.XX, Overall, Earnings with highlight. a share with net similar one-time

as balance quarter, loan sheet purchase will begin receivable and forward. moving of term the and the first asset, of net received per the Star value approximately the recorded changes, an reserve. assets the an tested million for GAAP approximately $X.X of accounted I’ll rules over be $XXX goodwill million presented fair to we which represents which First, In now price includes the excess a million loan total Holdings with $XXX

sits for had within closing equity the a a The debt. interests million debt $XX ground $XXX unsecured as part trust quarter net fund at balance consolidated lease million end. and loan plus and leasehold are accounted of investments method assumed preferred of approximately as Approximately

in $X.X income from earned other management fees included which the Now though Star income the statement. income statement. in is G&A million to way GAAP we Holdings, the offset the to moving included Revenue an approximately quarter for in discussed

previously disclosed, we annually during down pay Safehold in year the structured step is to one, $XX fees four-year As contract over which term. million will the

accordance In We QX approximate Holdings cash services recognize $X.X [indiscernible] cash provided, we which on accrue post-merger. coupon. to based quarterly over quarters, three the receive approximately X% setup with rate anticipate term per our management pays earned next of on would the interest for a income million agreement. income million the Star run based on contractual which which work loan, we included and GAAP, lower expect We approximately $XX a forecast

expect to saw equity the investments be higher from yielding to we earnings net core pickup leases related it generally which a within are Additionally, ground our to method fund and income. accretive interests, than

structure. Looking a expenses, fees been cost standalone QX. and $XX internalized overhead with items have payroll, was all which other iStar all such management contract replaced items at expenses and for as occupancy with million management includes to related our G&A approximately previous costs,

straight with compensation more LTIP vest, the approximately merger four-year and the over for accordance which includes grants, which at the vesting will million front term. put Stock-based In closing. LTIP have means $X QX, grade four-year than plans lining board a was place employee we expense GAAP, in rather grants loaded bonus accrual,

few Taken Star run a from $XX next approximately that Holdings million rate will the project for on be G&A together, fee we the annual basis of years. management net

merger short-term last borrowing on it the touch to the year-over-year closed Similar of certain with credit other the felt instead day line, year, on merger to QX of rates revolving our This have borrowers, standalone decline EPS. the accrued which driver for quarters is and effect of accruing we up elevated items three end could associated in primary since QX. the of four, year a due over items the in full higher for

much Early quarter, we of the X%, fixing stemming in near-term which to million that rate effects occurred. fixed earnings will executed from $XXX heights the the floating Fed adverse SOFR approximately second substantial to have swaps, mitigate

On yields. detail we portfolio’s Slide X, our

the returns lookbacks. cash flows structured portfolio CPI environment what ground with to an consists contractual presuming of On important leases of typical leases. for disconnect yield of and ground annualized our we X.X% the The X% length portfolio our cash and generates of out basis, the point and periodic the for recognize compounding majority It’s between economic inflationary yield of the X.X%, GAAP. a Safehold GAAP

of we returns flows, originate with When new its a based. IRR aligns the asset where economic cash book for we earnings given

about lease moving certain want forward. there’s structures, between clear This treatment further that topic and economics. For a GAAP important significant is be and to explain difference we an

variable Approximately rent our today’s have assets XX% rent. that current exceed of can

as the to even on conservative that result, closer not increases the we and rent, are a is CPI with term income have as to pertinent forward the economic any view our they over no acquired the why CPI the more asset. value look yields When the structure a Accounting line key for we we much on the underwriting example, leases economic of variable right market we as this our style at is on earning escalators. legacy provisions reasonable on ground fair make does side for For the for the of up lease expected these with such or referenced underwrite those and portfolio expectation This assumptions investments, closer leases yield linked GAAP closely the the though no reality. XX% GAAP page component, variable assumption matter how of project X%. disconnect purposes. of X.X% lease, is true go allow percentage

X.X%. and which of is yield of X.XX% uses today’s inflation produces Inflation long-term Reserve based a adjusted expectation IRR yield, Federal

ground and as use embedded its are This of point XX% introduced subtract value yield simply effective demonstrate of $X We way yield We Caret potential adjusted ownership adjusted valuation to the adjusted appreciation latest this the our in approximately capital we from which last believe our for quarter, the Caret the basis. the inflation current also X.X% of tracking lease portfolio. the is Safehold’s illustrative impact using portfolio yield, to inflation X.X%. starting metric increases the billion and an

is breakdown property as markets XX show MSAs originations location in XX underscores we value markets should we portfolio’s diversification top top over appreciate XX in of on the Approximately the of value believe listed emphasis across X, slide. that our on type. leases benefit highlight gross book underlying We the quality by This the thesis located geographic Slide to our Turning top our is that and to portfolio. the ground slide institutional well right, XX% diversified our time. fundamental on a and

primary XX% further more portfolio of made years for breaks the in represents The and the bottom the detail space, multifamily book count the progress has been section new few channel count. and than last by highlights which value the and over down portfolio investments within

debt $X.X of an of comprised of we of capital quarter, At on overview own X, had provide leases, $X.X Slide $XXX rata joint second non-recourse debt, our drawn billion structure. end on the our billion secured revolver, on which unsecured on billion billion share in our ventures. we of we $X notes, pro $X.X Lastly, of of unsecured approximately the ground and million debt

have XXXX, which weighted until approximately years, of Our maturity corporate is approximately we million quarter our average XX due credit end, $XXX availability. and no had debt facility cash is At maturities and we revolver.

interest we previously As meaningful money. are currently offset through rate fluctuation hedges mentioned, taken the in have that steps to

money We in for million SOFR in which X% the five locked on at of rates. current based $XXX market is have approximately with place swaps presently years,

be long-term $XXX hedges the eventually to currently unwound in significant gain markets. a weighted have million also We of X.XX%, which average we treasury and reenter debt applied as position, rate financing a with XX-year will of

total We spread again today X.X%, includes our future are is to the GAAP XX% debt is equity on effective basis. debt-to-book permanent on basis The which X.X% yield at being a booked times X.X% a portfolio, of which to on given we portfolio credit basis with to described portfolio’s permanent annualized XXX the yield. interest rate GAAP no The XX cash X.X%, is cash annualized that points income on spread rate which X.X points yield earlier. interest the X.X% levered the is debt annualized

both with at and agencies. on Fitch outlook and active We’re positive an both have dialogue Moody’s

structure believe by market. underappreciated a has of that is that existing our been the company we valuable Overall, capital component the

time with We analysts there’s an Safehold’s in no years of sum have debt $XXX to as to parts We million with term be a term what these $X value in a important a to by billion a calculating value. analysis. attributes, of weighted that that uncertainty, basis, long-term is of asset maturities. similar – average should overall believe our attractive intrinsic ladder On a market the stakeholders particularly of when viewed significantly potentially market cost described, profile near mark-to-market XX below

while in been conclude, and has expanding remain and back by been macro terms so markets to of real position on thawing lease leadership focused a getting ground it performance, encouraged the year have far So estate trends in stock business, very we our to industry. challenging

I’ll that, to turn Jay. with And back it

to do Thanks lot certainly a leases but the next What’s helping place have faster. forward development Brett. detail, early how to There’s accelerate and enter lease even really modern this still and me for to estate that is we markets is we investors, ground work to look of striking mainstream carve-out phase are among a the adoption growth in adoption to begun of the as real still ground we in of push industry. that customers

ahead open go it And questions? don’t for up operator that, with and why we

Nate BNP Crossett Thank The Please Absolutely. [Operator you. from question is proceed. with Paribas. Instructions] first

nice at just look It’s picking could does to, sub the Have sounds you multifamily on now? it I areas looking any you right like to activity if was subsidized so speak mentioned just other sectors, all and Good think have far anything at? may in Nareit you’re evening. this bit. it thank like Hey, there curious what a see you housing. closed pipeline We XQ pipeline? up are the what you. then in Are sectors quarter,

curious Just your there. comments get to

Hey, Nate.

been So affordable closing transactions so. encouraged process. six our LOI a housing. weeks first did student housing the deal There’s get mix in we’ve space, the under and all a And so in as or of pretty handful think, multifamily that we They’re well. I of last are the over

example these by housing mostly be there in Student isn’t is we’re as so pipeline, but to the of next which momentum classes. thawing hospitality leg recent it kind supplied. there of multifamily a today, at one So of encouraged look under is predominantly as the is up the seems as I some asset, an signed and well, asset housing

is conviction recapitalizing And new our there, underwrite. some there’s capital about accretive growth rent think I pursuing transactions or owners solution from can they that as acquisitions.

is Okay, think on pipeline, that’s just that this then the it pricing quarter, helpful. guys should how similar the or you we that to about And in that? quoted what’s X.X%

would yield. about we’re really overall I the X.X%, the, excited that say Yes,

would we say think I better this did I quarter expected. than

X.X%. between Our is today X.X% target would sort the and the range. say X.X% pricing of And that in still I of sort the sits pipeline

look last? the should that we Okay, the are do how on about just balance current one for hedges I when on swaps how thinking just do think out? thank that good the so you. where five to think And just about then money today? and maybe you should sheet, said revolver, could XX-year we may term Like be you the how then years, you long

about If just you’re in terms debt, talk I of feeling? to what wanted

Absolutely, yeah.

back the over Nate, the merger know to has the nice been the you it’s the course drawn educate get and As discussions since line of folks. out and closed, merger’s road on

of on the and investors with encouraged new we’re is that’s what a side. equity debt lot meeting think I by both

open evolve lot a there continues are parties. more So interested this, to ground lease up and as market definitely

of we would think, across figure moment we’re at rating and lily out from get look about think of end. the can say side the opportunities to kind That’s continue help of next those well debt that pad. when at us capital cost and as our And all think as capital try level in leverage goal what what is, best to I our allocation, on board about that the I to the equity looking and side. we’ll our

important plus well, the then is, which clearer. think this today, hedging, And XX-year trying which to line money. half then the other one XX our are the fixed. last we we’re put is already as make deck piece points the half an that, quarter that in of on I We And is in the hedges is have basis

of, we that if if will do talked will So as that we’ve amortized gain gain significant different respective debt XX-year of a deal is life that it’s instrument that deal, any the in a past. XX-year structures a it’s about the be over

allocate turn continuing try those about and thoughtful to borrowings. we’re out to to how capital be So

Okay. Thank you. That’s it.

question next Haendel St. is The from

Juste Please proceed. with Mizuho.

Hey, good evening.

investments how the Can via the wholly-owned process is most Looks instead JV? a First in guess quarter. recent allocated versus discuss JV. guys, activity the the was question on I of I you of investments new the your like on are on sheet balance guess, of

we here. cost or think JV were given of impression first would I under the the higher that the likely be capital million through $XXX your so

So that, maybe on elaboration please. some

There pre-existing through was a GL Plus commitment our Fund.

And the venture. of predated the that so execution

large quarter million. a And $XX relatively so, was and transaction for that was the

friction the it why is we at closed look forward will the venture. all be was $XXX out. close that smaller that’s going may say next in going about think so But up, until it you The venture there I’m forward individual will most fund is if for forecasting, million transactions $XXX the we I go not fall likely million would setting now, costs venture. the the some within where the fill And REITs bucket. the in way should may transactions way

And multifamily redlined. Thanks just the us there’s rights? they’ve only does remind and that for any asset regarding I curious if if classes your that. I’m have guess JV; partner in here interested they’re veto

the They it’s have process. over discretion a obviously. both so do do capital. collaborative Yes, We

we start our So to it’s a as collaborative process build pipeline.

in think of most the we’re space. the I residential product seeing is

in few supportive in mentioned, of they’re have didn’t classes, I space We finish deals that something asset that well. were get as as them to they’re, other the a ultimately shown there’s that and line hospitality the

which a be So, we’ll we’re the And of do sort resi, do residential, that going excited about. market fair us. not amount what to to we’re just of happens gives

JPMorgan. question next from with Paolone Please proceed. The is Okay. Anthony

thanks. Yes,

sure to ones, I a understand. couple just clarifying just I First, make want

XQ, door cash the does money? $XX that out Safehold’s in is that the some of terms JV partner include also million or In

The exact number?

$XX is us.

and $XX in for leases is the leasehold so from share us, million includes million our and fund, ground $XX loan that leasehold $XX million in fund. loan the $XX

Okay. guess $XXX is committed, is in the reconcile I'm $XXX And trying you that some of then $XX that just what already, and sort I your new $XXX what your the million. the of share. but in of commitments, was funded to share million, you at million, that spent million the in

$XXX it. got the You number. million is

but Safehold's rest – the the out got at committed it. unspent or now understand Just Okay, just do of of could kind like of to and go what baseline? right you And what's year kind share?

So we'd is so $XXX number. on a gross it million, basis, that approximately XX% be of

XX% $XXX million. of the

Yes, quarters Okay. few do about think the what still gross talked you think the is and just just, what do could terms million picking of tell? you pipeline I doable from hold in up are $XXX you could – Or Like next pace? is the spotty? you mean, things

If would me – right? up I'm doable. as markets I spotty, a things things past the dramatically $XXX are you are say next yes, over you the snapshot and volatile. I year, do can think But seen if change. extremely today, morning These the is wake give we've million

to want a momentum. a the put basis, recent don't number by very I So, but out encouraged we're there from quarter-to-quarter

to just given the higher, $X.X up talked on then like but everything that's that And mean, you Or to move good financials, is it try Okay. a if happened understand there's that's income JV a in last just the in and anything million quarter, just one in why want rate? there? big run like about is one I the

Yes, rate, that's Tony. run probably a good

closing, right If we assets. you at those acquired GLX merger recall

but line in assets our we've well. unconsolidated go this the existing as JV past, through there's done So item now the funds that

there, good run but So forward, initial There some touch decent maybe higher rate. it costs that's rate. a in feels a a so run were probably like going that's probably

you. Okay. That’s got. Thank all I've

The Please from Harsh Hemnani next with question proceed. Street. Green is

Thank you.

and So to the lead X.X% their of open course, up. is it's back transaction see great a nice market

any lease could fair you if that end that guidance hospitality And were acquiring to And in out so call on would office you range of Any hospitality be X.X% there? pricing deals you sort think office I that those, to provided ground saw that in shakes a some couple of range? market? you an then us X.X%would mentioned today? give there, the deals seen where higher you it it the say X.X%, type on you of be have you comfortable that

Harsh. Hey,

has the the And seen our deals we've office amount our So the a fit of to say proceeds yes, capital hotel given they end wider I box. with not to it's on our just the of constraints. so issue of nothing an sort in closer at pipeline, range, would And level. are fair X%. date,

those lot isolation a ground lease we've fair think of amount problem. have a assets that of us in leverage solution their a and I solve doesn't seen existing as

see our monitor. office to continuing we're some in own but very selective. we're so to that the And We'd being like pipeline, of assets we

think seems And two then two to the in round Have exercise their second in the Do first term? there'll there've private of Caret, sort in That's rounds rounds helpful. option round. be minutes on you as the you gotten guess, private more to that I helpful? Okay. been like conversations Caret? Any It around reinvest inbounds to near spending investors would done. any be more wanted investors these from interest

we've has kind investment focused which Harsh, lines had of Yes, – reverse Caret, this which we've creating more had seekers. long-term, invest inquiry say been the at we but I pipeline been would the wealth I is along point, the on think on hoped, right

show the to coming Caret and of that can we hoped concept think again. rebuilt out that familiar So we've which I of what pipeline is push more of be kind merger. continues the more something But and we is will growth once the getting

Okay. Thank you.

Up Okay. Truist. we have Bin Ki. with next Ki proceed Please Kim

the is X.X% you're the yield the deals at? GAAP that inflation booking quarter, X.X% question originations Thank yield the you. Quick on this adjusted

Yes, correct. that's

[ph] the I bigger a numbers. would've between two been okay. Oh, would've thought gap there

not in yield. little lift long-term bit up the it's inflation bit X.XX%, adjusted X.X% that's X.X%. And little in there's Fed much that of rounding the assumption so went from a since down there's a that Yes, a and quarter-to-quarter

the where asset can ratio coverage Okay. per calculations covenants? today, fixed unsecured the where debt versus your that charge is and covenant unsecured you today your is remind versus And us

one an coverage we're From and asset standpoint half under a times. unencumbered Sure. touch to unsecured debt

obviously over we future know, past here standpoint So and a to well, mid-twos, as as run it you million in well go look you the FCCR and will to equitize that stable. call from numerator a in look we rate grow and quarters, EBITDA borrowings as our super, – some long-term again mid-ones, the that's X.X EBITDA denominator declined X.X usually $XX know equitize also cushion the up as we're back raise revolving line we but in from it's debt cushion, grow. cushion of as this hedged then as sit about to and the, the and super will the which debt it's markets, And an standpoint that past is as will times quarter. of, that of it's times, And

we our be X.X say rate perspective, would of a X.X times I'd X.X where I'd X.X within [ph] to And corridors. are. times it on staying to both times a FCCR run those typically of UAUD call times So from

Okay.

And where the So to times those in given seem deals. quarter. also more are a much covenants left I’m of side not are how today, it not on sure equity cash doesn't FCCR exactly like the lot X.X debt-to-equity, I and terms do of cushion retaining those each flow where covenants, we’re the mean, there’s you

stock it to what or isn’t the over how be And guess I where needs equity about know thinking you are address but are be, needs to your I you exactly year how avenues you where so? next want level, or price it that high the just equity? would the So

see the the be our said want tied are typically in the we guess, markets and able buying the to have We when I always future. to power and what in be pipeline to sufficient we we’ve things aggressive be. want liquidity Bin, it’s Ki past in to to

us party capital That’s makes been lean at third out and seen primary third us, make capital party and the look game. for equation and mix of between the sense. certainly we’re in You’ve on part ahead the of we’ll sure it when

certainly, how we’ve XX it that’s a over been beginning last the So And finally the thinking about break to market’s bit. little months.

the party who got large on a capital very very side. partner we’ve third helpful So has been

And curious, that from have use on I’m capacity. the your line you actually, a that? you practical million actually about up standpoint can press covenants? of of But all Or credit, $XXX you against would

us Yes. finally we to at Markets kind different We’ve least ahead and deal But mix right. opportunities us that with get present an starting the on got the we’ve debt will think headroom being side, XX we’ve start next a here the the months needs and see. are choices over creative we’re equity plan, of looking Brett are said, got got still, the plan as keep at out of cognizant. capital we’ll we

you. Thank Okay.

from with is Matthew The next proceed, question Riley. B. Howlett Please Matthew.

Yes, thanks. Thanks for taking my question.

the the in was originations, significant the in the Just quarter? on your on do properties, any changes amount UCA any on you went movement up, appraisals the of between obviously by – any

in part cycle the we’re the to starting expansion. look, cap catch rate of that Yes, of are up to appraisers some where

starting obviously fundamentals in the of are Some to particular office in bleed.

meant assets. number indication that be degradation the is we’ve So a the to appraisals value. a long-term seen of in on a But of

stuff out, So the we’re in now downward expect time, stabilize certainly that over to we right slope. but

Some of expected. the actually than multi-families done better

starting that So rate not whatever on machine cap the up it’s add seeing. we’re sort weakness a of to origination is all just one puzzle fundamental on external piece of that appraisal but story, back in the I to offset obviously catch is growth and turning the there biggest way the think

saying I were any you’re market we horizon? major was that but cities, restructuring. at and stable headlines the seeing no could mean, see was property that not discussion that in you GLTV the would you’re suggest every obviously in day on something on be – the office your is portfolio, terms there there Yes, there’s XX% of anything clear that with you’re in

offices statement. under on. Certainly is today is obviously our conversation an flow future issues some today pressure we’re engaged and there Yes, no with that’s where there and accurate tenants cash going rollover potentially is

Got you.

bank, the the back, about for the mean, – they real talk they’re could in for new we obviously about talking product come back Okay. you’re solution acquired on Talk you they to leverage interplay not lease market. and And they to your talked going pulling certain get they’re going be do estate pulling to ground from you solution the that are with and are the If it to bank between Jay, the product I do, then be lending solution LTVs the could need. environment, offer about commercial do or a about the the owners them banks. types

bit the pulling interplay little back a and about modern talk your ground ground your between Just lease? and banks the

Yes, news, terms good sources leasehold in capital banks our bit capital source. of of little a a have of typically for up of the party the with been one pair bad We business. it’s news third of side

Sometimes probably it’s leasehold we’ve it’s lenders CMBS, bank, point. center with money regional it’s bank sometimes worked sometimes at what XX this banks, that XX,

there stack are leasehold still customers it of to together their market our space pulling still the Certainly, put So our definitely there. when is pockets capital help are multifamily agencies the ability in lending the capital. back. But constraints

great not So news. that’s

them ground than lease low The more capital capital ever. term of a cost is structures helps Long is, from capital stabilize that and positive make side more valuable resilient.

need at are of part marketplace. definitely do to be But we best. volatile market So solution we functioning financing the more a to think we a our

be fine. would So is of not good. A complete a estate line red commercial pullback real

questions, Got my you. for taking Thanks Jay.

queue. further have we Mr. in Hoffmann, questions no

Thanks.

directly. have giving to would mind should feel on instructions replay conference questions free me release, additional John, you you call more? today’s me contact please once If

in confirmation you is a today’s and participation. of be time. will at may conference conference, Eastern disconnect concludes XXXXX. of There This X:XX The p.m. time call replay Thank dial XXX-XXX-XXXX lines for replay for you today. the your your at beginning this the code with this Absolutely.