Lument Finance Trust (LFT) 18 Mar 242023 Q4 Earnings call transcript

Good morning, and thank you for joining the Lument Finance Trust Fourth Quarter 2023 Earnings Call. Today's call is being recorded and will be made available via webcast on the company's website.

And I would like to turn the call over to Andrew Tsang with Investor Relations at Lument Investment Management. Please go ahead, sir.

Thank you, and good morning, everyone. our Financial discuss Results. joining Fourth Finance for XXXX Quarter you call Lument to Trust's Thank Henson, Zachary With Jim Portfolio Jim Jim Flynn, on Management. our President; me the CEO; Briggs, call our Director our Managing Halpern, today are our of and CFO; a fourth On issued quarter we results. SEC XX, provide to March our XX-K release Friday, the details with filed and press on our

found provided We earnings on be our supplemental can website. a also which presentation,

to over call meaning to in constitute evaluate, that Jim of Such forward-looking on Before that remind of handing Securities and Securities like the this intends everyone differ those identify within various of Act to and are statements the similar I'd of historical words contained the conference this the XXE materially will, of from risks are the believes, XXXX. anticipates, forward-looking call, Exchange Act during made When statements to the indicate, call XXA results forward-looking intended statements expects, may certain XXXX cause statements. like actual used to Flynn, of Section in statements. based Section information expressions course and are not other subject forward-looking could outlook, uncertainties and

company obligation not update forward-looking place which of forward-looking statements, these the It the uncertainties particular, hereof. predict These as not or Risk such are undertakes reports the possible SEC, Factors to reliance on undue company's of discussed including is speak identify all no are risks these in reports section and on Form its of XX-K to and Listeners The to Forms any the in filed statements. XX-K. risks. and, with X-K, our XX-Q only cautioned date

as comparable presentation certain this nor is non-GAAP considered financial information at most intended of these accordance A GAAP non-GAAP this be call. measures our SEC in Reconciliations can with financial the financial through presented to isolation substitute be information on measures a to be www.sec.gov. is with of GAAP. the Furthermore, not discussed accessed conference prepared the in will accordance in measures with filings

and common per fiscal net per respectively. GAAP reported $X.XX of $X.XX share share quarter year XXXX, fourth stock, and income the For we of

quarter our dividend XXXX, past we $X.XX reported share share of year fourth to of per fiscal and to of stock, we This and cumulative $X.XX the for $X.XX dividends $X.XX For also the earnings declared the year common a declared distributable with quarter, share. respectively. December, bringing fourth respect per per

the go turn Jim ahead. Please call to I over Flynn. will now

believe everyone. Thank for Finance appreciate of to you, Good probable everyone XXXX We and behind the economists than with more quarter with Lument cautious expectation macro us XXXX is are perspective. We're Andrew. now most viewing morning, start soft Welcome that morning. is X us just in landing the hikes Trust optimism. the this further call joining Consensus the I'll XXXX. ago. earnings fourth months

plays X% risk bit That on data. of and recession the landscape. monetary with policy current how down, most remained has being seen elevated as up closer to of Fed par is the lag, we've which as said, geopolitical seen uncertainty a persists Fed's fully economic across remains operates the out albeit below economy the moving remaining all moving a available Inflation, resilient, U.S. rates and rate X%. unemployment the recently

financing opportunities. its short term, continues has of market property In limiting [ acquisition sellers, X challenges. sales driven be primarily opportunities the and ] significantly set the Multifamily own to by

higher rates some the I -- insurance includes higher say, in maintenance labor, the industry. sorry, market to supply-demand should is experience had the costs slowed some in addition, markets short from resulting NOI multifamily we've short-term expected across supply in addition to growth, -- property of and dynamics, and In softening operating the impact of markets

the fundamentals. to spread of given could rate investors impact constructive and perhaps lower and its multifamily the the historical strong in performance environment between class debt current short-term valuations narrowing performance and remains improved long-term sellers, asset the portfolio and among XXXX asset half property positively proceeds. The contribute of Despite our challenges, in turn, favored a buyers the in latter bid-ask

maturity Further, of significant horizon end XXXX in of MBA by industry billion opportunity and over multifamily on reach well billion $XXX we loans see within of years. X the expect multifamily to the next $XXX expected the over mature to are others the refinance as projecting are to and initial loans expected the

previously call, million $XXX approximately had July and successful to levered and capacity $X.X investment billion. the on year, As company last our secured financing in a busy a discussed quarter's closing increased

we During $XX an of quarter, fourth acquired $XX of funded million the and or million loan experienced payoffs assets. loan additional

the asset-specific our effectively our than As assets risk portfolio is moderate X, X of rated XX% collateralized approximately highest We no only identified rating reserves loan multifamily of had deployed the with and or year-end, during as the of period, X X and more capital was risk better. fully by recorded assets risk. which XX% portfolio risk being

weighted period to structures long-dated transaction ended December, cost SOFR The of past secured with effective XXXX advance company an X maintain basis liabilities, plus XX% attractive relying a financing to and of leverage continued points. portfolio. average The this XXX CRE rate investment on primarily an reinvestment CLO

that delever, in opportunities Even securitization cost provide expect relative the however, attractive as quarters. current consider expect capital the to CLO to to to market. an We alternatives and the over transaction warehousing of begins do, continue explore of the refinance coming structure we for to carefully

this existing expertise strategy. relative of among focus investment experience company a peers. from proposition active management ORIX to unique many our to within its the investment LFT is and dividend, believe REITs, partnership dividend performance remains company The the been in portfolio, able mortgage stable yield asset provides credit, value maintain platform. on its broader success lending, its given credit with has strong shareholders and multifamily committed a superior multifamily With We comparable a middle-market and in better-than-average deliberate deep its to

Briggs, to will on turn Jim With financial call I'd details the Jim? who that, results. like over provide to our

everyone. has Last filed supplemental Form our will find uploaded quarter. summary morning, Friday to presentation well the our Supplemental during presentation our reference. a of investor On earnings which annual Good Pages been the be updates webcast we on referencing presentation, investor X our as will through XX-K we remarks. report provided and in website, for for on evening, X you your the key

of quarter share. per or million 'XX, fourth we net approximately of the income $X.X common $X.XX stockholders to For reported

million There with share. I'd QX items reported like a are We per also highlight or approximately to distributable earnings few to $X.X the regard $X.XX of P&L.

interest QX compared million net was QX. Our income in million $X.X $X.X to

quarter's by the a from the XXXX-X resulted QX lower fewer earnings interest financing While during benefited decline worth in LMF of was transaction that payoffs fees. closed primarily net net from sequential income levered period, a driven in full exit July, which

as Payoffs and paydowns in QX quarter. totaled $XXX prior compared million, to during $XX the million

exit down payoffs QX from approximately fees were total well. of expenses prior QX Associated XX% $XXX,XXX the operating as our also quarter. impacted Reduced

is of of refinancing management the of that paid reimbursable of instance, our the when to expenses exit our provided of exit we way In do, reminder, fee pursuant manager, an in agency receive to off our our the XX% are to waived a one agreement. manager a however, by fee. affiliate borrower terms loans credit As

relative quarter-on-quarter. million payoffs lower were by expenses of in driven operating increase majority is lower million to expenses, driven Outside that, versus expenses QX. that Total largely to by exit flat lower fees overall QX of The $X.X operating credit and $X.X were expense in waived associated QX.

our forecast average in changes period, Primary cautiousness rating primary difference income driver been credit CRE reserves. estimate to a between transaction relative very there with was distributable of the macroeconomic to this increase and reported relates in in uptick modeling $X.X pricing earnings X.X to all our little during respect increase allowance that it for X.X, risk general and The modest has million was the activity. where net as approximate net general our in reserve from losses,

whether that for I'd subsequent related asset-specific we losses at to reserves of X-rated year-end. loans We none 'XX. as evaluate are to context, necessary note credit necessary some loans our to where events December had XX, determined two and the In X-rated individually that like determine

to multifamily Columbus, respect a recovery in a on proceeds for we Ohio, accounted the collections QX with X-rated related both property loan cost loan received on QX. nonaccrual in that With the has basis, been to and

million Our in expect the QX. QX, reduced million in a costs the the in taking reduced asset consideration as QX year-end QX. $X.X into the received the And value After carrying of to $XX.X proceeds received at in result to recoverable, was will end of from $XX.X in $X.X the proceeds our million certain in value being approximately be of net carrying of we million legal and to gain other $X. with loan

With respect things, of $XXX,XXX paydown of a to a in nonaccrual will was past default, as was and modification modification principal year-end being touch remarks. all loan with X-rated Virginia, December on to million as XX entered borrower resulted loan that the multifamily among property due we in $XX.X into Virginia the on monetary that, other Beach, a being in million a interest Jim more will his which of unpaid bit in recognized this $X.X that QX. in result approximately on dues current, brought

X -- $XXX approximately company's or fully million, investment million. $XXX with common the unrestricted per through million versus value were and quarter. our share, was was utilized. capacity As effectively approximately $X.XX an prior our the of of effectively We year-end, Total total balance flat was cash equity financings quarter fourth ended $XX secured book

to investment portfolio the turn I the the now will quarter on provide company's Henson Jim? Jim performance. during and details call to activity over

of our now provide within recent brief Jim Thank a I Briggs. you, summary activity investment portfolio. will

our fourth the after and million $XX payoffs a million $XX loan in downs increase the quarter, accounting pay net of period. portfolio loan experienced we for During for

was net our our the secured For million experienced as diligent features success redeploy efforts in a after of period. $XXX our we year, vehicles. in The in full $XXX portfolio as to of well executing loan our million payoffs driven growth increase by managers' the July primarily in for through the capital reinvestment for portfolio transaction loan accounting LMF the financing

full funded year, were collateralized by funded $XXX during multifamily Of investments loan approximately approximately collateralized XX% or or XX% by QX, acquired the investments Of acquired properties. multifamily $XX loan of were million properties. the during of these million

of of of an $X.X floating portfolio the X-month XX% As consisted portfolio SOFR. XXX% billion, rate to portfolio properties. multifamily of by balance floating indexed of principal rate year-end, collateralized aggregate approximately with is loans XX with our unpaid our

portfolio ended or a by our X AX rated risk-rated of quarter-over-quarter of a better the risk fourth we risk than driven X. increase continued to primarily modest investment the Our X.X, more X rating experienced the exposure portfolio well loan and as period during to little X.X migration some a positive risk our with weighted from XX% quarter, perform to during in of the average a aggregate assets going note, rating, Of decreased X to quarter. assets of X-rated our only loan from

an as with -- million of stated to we previously rated with unpaid as during payments As brought fourth loans to principal X current status respect balance previously accrual interest and previously -- was the restored quarter. $XX.X

X-rated that the evaluated XX, Jim specific XXXX at two loans for touched and were reserves. December remained on

the coming multifamily to As by the on the the respect X-rated of points Virginia bringing and to modification basis rate we paydown the XXX in are million collateralized $XX.X addition due a all SOFR remaining points, Virginia, loan reserves. Ohio to current past With books on noted, a SOFR of property based increased Beach, XXX loan, asset from and QX. plus in interest out proceeds received the note escrows plus on have Columbus, loan on no principal the basis modification of

certain our light maturity mentioned in ability been for April X, of and loans, the manage of asset that indicative portfolio, May of asset XXXX, positive success recent the that under to conditions potential within particularly Jim to for amended extend in management with stated positive developments results has loan active our remain management and repayments X, XXXX, very Flynn his to in borrower to The opening remarks. months. we proactively confident specific in in further achieve with issues Despite the successful outcomes ability

to back Jim closing With remarks. will it that, some pass for Flynn I

and again you, your the our up We call and call. like time Jim, open I'd of Thank interest. questions. thanks appreciate to all the on to guests your to

[Operator first from your And question Sandler. Love be will Crispin Instructions] Piper at

just go is the of in And then can First, you just loan I kind Do the sure loans, X-rated two first holding it the on Beach you right right. impact over on now first first just to make So I expect that it of to quarter? based the in you kind where accurate? expect gain the loan? Virginia want on you're got quarter Columbus

Sure.

Thanks, Crispin. Jim So this Briggs is here. Yes.

basis. the that So loan, Columbus we a been for accounting recovery on on cost have

been So we balance as proceeds, asset we receive -- down. bringing got we've just the

in and value then that down As we on proceeds in of down QX, QX did million be of with based book a we It received, that some received mentioned QX in those we remarks, and that in some $XX.X I -- my million. $X. asset to of proceeds expecting $X P&L gain will $X.X to to book we're brought income brought

the... For

interest Jim, it -- recovering to since of the all deferred of a result just mean, -- clarify, went -- to for the not nonaccrual. on gain yes, just clarify I'm or deferred I as

mentioned. Jim Yes. that That's effectively what as is, million $X.X

reason in what coming income will been on loan, accrued into debt was the in accrued we QX of and sort will not $XXX,XXX. what So about nonaccrual. of $XXX,XXX the is XX/XX be has mentioned the that just the be current The And $XXX,XXX due that had $X.X line. described and QX Virginia for -- as not what unpaid interest for QX, Beach very interest accrued, likely the that million and brought -- been impact. out-of-period of was booked

That's Okay. portfolios and the some across pre-CLOs. how then well if broadly you portfolio? bridge on more kind can any, what experiencing just stress your bridge different generally, just competitors' But discuss we've stress? And your industry on of more your multifamily is as from some Lument whole performance And multifamily sheet of of make portfolio of balance as characteristics, seen peers more trending of the in of the kind that across kind are kind helpful.

think I look, mean obviously, multifamily. we're I virtually Sure. that, entirely

helps. that are So are there There others that close.

have the our a originated been of of to of And the the of have a perhaps certainly portfolio, end been and positive. in meaningful longer we it plans the are that of that the longer while cycle, dated was number component got business prior that's toward So assets still and peak time valuations a a period set around for not peak. -- were we've

I critical doesn't also or a assets a sponsors in are what's has that to probably management in managed it and taking here both ownership the worked with solutions, one us assets. two act us think of Those to helped things assets, That team of with not. helping. helped has we've when relative got very of being aspects coming up partnering helped out to and peers find with quickly necessarily more asset it's But but But the sponsor. or find and not our solution we ourselves a position experienced able

would that reputation pretty reasonable our new the them across want least, been are And that helped kind plans us us. exit make of I legitimate negotiate to sponsor a in, doing we've platform whatever in coming -- it think work few that with things exchange in consideration time able say relief, maybe sponsors those even trying in you as with or that, it's the to being of do is of putting instances who some resulted by has wash the and quickly. they're to proactively broader for an had seeking. forward to sponsors and more to the way Lument sponsor We've not of sponsors to

been able answer. we've usually, And to an find

have think high-quality I sponsors. we

of folks sponsors, that, as liquidity, with do It's exception there's at to good Some And and plan, plan. we speak. LFT. sponsors great for so to late, sheet had come rate into help managers that the up time. trouble well. they that with our got we've get success sponsor's a can in as we'll terms it the work about good long we've Similarly our the with company, them can too capitalize parent of in good got much not But with as balance

continue on just we'll So management. focus to asset

on we When get ways working We're and to we issue either too thinking don't that out step far we speaking asset things behind. sure that an the regularly deteriorate. can proactively or physically there immediately see sponsor struggling, could we how visiting making before with assets, resolve in we're about and

the So why portfolio management stressful can asset one a is number reason environment. any active in perform

And then one helpful. me. just last That's Perfect. one quick for

$XX pretty of quarter. out or So just the had were there? in to at those sizable there in payoffs self-storage million portfolio? call maturity you perhaps Was that Anything loan because anything else that a play

Yes, they those were assets. older were longer some --

but financing call if Those noteworthy. to in or I but able to know are those mean, move we're there's Eventually, the years surprising. resolution assets not could particularly permanent X anything not X have -- me probably someone on mistaken. don't -- close portfolio. it's old So fact, I'm on permanent old, correct the I don't if years I and think those maybe not see

been they've around So a while.

on in that our loan quick above This that Yes, there. one. one, jump this well can basis. I resolution is Zach. A asset sold

Next question Steve will Delaney from at Citizens JMP. be

Congratulations the solid that quarter challenging we environment have. on and in a really

this know So early. look, is I

hiked see third but recoveries very XXXX? do in we're guess, back solid the the first here, and dividend dividend hearing You quarter. nice the the further and would want your have do make think to in some you mind, to here of in quarter, in the importantly, Flynn, confidence Jim coverage be during the Board, increase I what to any more you what

Steve. Thanks, hear to Good from you.

talking of We recoveries, our a relative number Obviously, feel to here. Board. noted. earnings. size, you the position in as about good including liquidity So to those the we're confident We things there's our feel

see is quarter more continue goes would two lot we'd That's in is there. like? with really going looking see And have focus of say broader we're would the the how looks Board, I to a positives what's at there's stability? or next the importantly, or what see discussions of the the do we to So like improvement Are stability? environment say, what I we to in terms macroeconomic market. is,

have spotty. a transactions done. We'd bit to markets capital been like The some more see

are to at might own level could the and at we working we be. activity We that what refinance corporate looking and what and our

the So issues, view, with Board. continue those that all our be things help as will expect of dividend we on things, would to or we clarity that And them view those hope on think our do base as I discussion out get play the guide the trajectory.

look from maybe some a some say a a coming less whole, at Certainly, issues, the maturity of concern there's market a standpoint, lot on taking would I having multi But so corporate as about the up. the side.

I think will extend. a lot of loans

kind kind of to sees, stress kind of some looking things comes new make to what manage continue see Just perhaps stress or what of using in a stress market that that then our classes And and going base of on from be position up. in at issues the the those projecting, of are the cash if investments. other of incremental that asset of macroeconomic we're some sure peers any making path we some maybe we're to that we

diversify whether be in space, that's at in loans areas opportunities that's XXXX. participating some looking over construction seeing, bridge that deliveries some available the the ample multifamily no are out mezzanine There next after everywhere, a from capital activity the are whether little bit will to of almost which press there, in the

think market does, be is it's well. maintain could move direction. Board. with think But our prudent right investments we'll liquidity in to that to the there's we the some -- some the continues where new now, to it that ensure continuing position So as discuss there make I If right and opportunity we

in it moving you a optionality a couple do next rates we fact, the Jim. like sometime if helpful in And That's forward, have here especially see of lower of looks guys lot quarters. very do, overview,

Steve. Thanks,

at question JonesTrading. be Next Matthew will from Erdner

what Do the or Because you extends extended XX term loan average percentage of weighted is portfolio is know fully the XXXX? through months.

this So just for year? what's payoffs expectation your

over which So maturity can mean. Very are We're in extended fully bit the payoffs, I we've XXXX, that of pull high, the a is, is than the think, where being extended, seen a several fewer function very at but you few, about to and as payoffs. is, few more that portfolio years one. Zach, still relative seasoned I past XX% frankly, anticipating it's the market been

modest their in down, in overall. kind further And So a the of lot loans we've seen -- their or think along seen further financing more business cash market I the per of on neutral path that refinancing activity the you've move plan. or

number some to so plus be through kind we that kind even from 'XX -- And normal we're higher. going number, is of at think was XX% of years 'XX, a XXXX

in think So going that we up do percentage. end we're around to

less in the again, so much, of because a past, owner the were assets much it so flipped is think new or I into was going But kind values a sale basically about reason higher. new being going

environment I some looking on rate lot where significant a refi So or a quickly, we're their say here, owners to recover cash optimism to are of in either drops equity because muted. sell, an in become relative has

that. there's Halpern, so current percentage represent know little more of have Zach a into a environment. that you the And I if settling bit this don't

can little the I its is in have that maturity. is addressed we do final Yes. one This We an context with previously on that asset jump there. call. near a asset have a that as substantial asset paydown. you beta I would asked that, see those, has and guys ] such. assume that And received you us CRE review case CLO you [

that And we refinance expect term. to asset so near do

assets upcoming extension we Finance Trust mind in Aside that as have fees benefit don't -- to maturities any are Keep borrowers extend, from also if which had that maturities, maturity that from XXXX. final Lument there that, past well. in or choose the their in will initial

Raymond Next question James. Laws at Stephen will be from

Stephen This on Halapio for is Laws. Clara

course spreads the see over trending investments you credit quarter? the and competitive First, year? new And do could this And what investment on new how credit of spreads your talk overall this you please on about new pipeline landscape? the were investments

something of they've on there. they've in roughly wide, certainly recent let Look, Depending is but on you color location, of stayed get the assets Zach XXXs. spreads I'd under the significant review. the we've give say I'll some specifics Credit XXX. been months maybe don't that. -- the seen expect closer movement I an pretty to Yes. in uptick

probably I where think about that's we up. end

sponsors, some where lower but been. kind for high-quality seen spreads low-levered, that's You've of it's

So get see seen have out their think pickup of needing I I of One, there's some we sellers assets. couple for reasons. do -- a to

still about environment, And We've below normal from new complete just or other also lenders loans levels with forget any coming or We're capital where a other so it's XXXX. current seen created what recap significantly some ours transaction a or financing these levels. either places, where cases options whether more borrower plan at momentum. in business to current or borrowers new are now bridge the

So new we but where ago some few the like robust was say would We're opportunities. have anecdotally near seen years encouraging. a it not point it's I

Zach, do a add that? to you little want to

If XXXX, would I wide perhaps XXX understood over of in to in multifamily SOFR. spreads, say, bridge [ was I speaking generalizations somewhere multifamily around the ] Sure.

I spreads think, as Jim Flynn have alluded to, tighter. trended

think SOFR now. is baseline over somewhere between I right XXX XXX, that

remains muted, graphs the keep all property multifamily of and has loans acquisition and we for a to of caused substantially that, on the lot demand the that still supply enough lenders we've side, think which activity know seen I escalated. now

into I things like here. in in tightened CLO warehouse think also mind line, have of CRE spread spreads that we sympathy. sort that Keep range settle this

are tighter in And spreads. line still so economics despite

there'll of be a given since think QX? question you CECL the positive Great. And release my resolutions just two do year-end, in you reserve? reserve last how loans is think about Do X-rated the then your

Mr. Briggs?

what see, a the things you're So we're we macroeconomic about Yes. talked of right? I is going X-year and there. environment driven going we by what Jim have period the mean a have going reserve forecast there. there, see couple to is to to be that

in feeling our our positive there'll the from think some ratings. I stability is risk resolutions, be

driver. be shouldn't that a So

it's views reality I more be and to and up ends going driven what your the environment being. macroeconomic of think that by are what

Chris Ladenburg Instructions] from question will at next [Operator Your Thalmann. Nolan be

Given having it you margins, any in for previous quarter, it is comments the landlords the compared a where interest been is in where of fourth portfolio have in your can give where quarters? terms your of color might terms in coverage to operating narrower

do bought one. meaning to of that all quarter has caps, interest borrowers changed of loans Fourth our the capturing Let our have me options rate try that consistent. quarter, coverage that mind into well, step that third really the -- majority been in hasn't versus pretty in SOFR if loans money. of all vast much. interest majority the Keep those rises SOFR have

is If yield look an sort transitional generally has of These that metric loans. to at to, yield, fairly debt I easier which been bridge are speak consistent. loans

so all else margins equal, are yes, And -- tighter.

point be increasing units However, these and post getting up of are may as leasing occupancies are towards their rents plans business where are picking perhaps these loans up the renovation.

there. I so any And like and up portfolio, wouldn't stress pop just quarter-over-quarter, heterogeneous we're that although say here systematic seeing are that there things

interest rate and average is at rate This performing that. had add MD&A, caps I'll in our XX/XX, Briggs. the weighted X.X%. XX.X% of Jim just to on loans strike Zach mentioned interest was caps. We disclosed

. Okay. And then...

ahead. go Yes,

was go no, to No, ahead. I another go go ahead, going but to please question,

that have or with cost we've many the point just preceded business obviously that no, with in a stressful increasing. made that early going I many No, to middle them was increasing, other the Zach every period rates of good assets But of I'm parts think say, seen gone of these their through plans. were

So look, turning units even truly those that are asset-by-asset it really are in. assets meaning -- tenants some putting new an and is still

their the of of plan. of at is progressing terms yield, the of much not business original debt in so rate positively still And portfolio most coverage, progressing but are in terms

increase a lender accretive many success expended being increase having it But NOI they're that and the It to the the success cases, anticipated. as to is than us dollars standpoint, that still business mean to does doesn't makes in not it sponsor. but sense. mean less in from NOI are The still is

answer each it on the business at portfolio is how executing are asset just a which the as because really performance, asset in their difficult this -- look question deteriorating no. have they So But and most in to whole is they plan? individually are determine is to cases, you answer

Right.

Okay.

capital to management. Turning

considerations in in trading if terms not, Your what book at point roughly value stock XX% you buybacks? consider of is buybacks. And of would your

And And with the around already do which are to the at buybacks level, impact on we ways with of fair we've we're if we is equity the been, has our term recovery even the portfolio. under-scale particularly to no our would do desire, kind also, relative would stock common value, to The actually had to think the we're there's price? that that and expected always and Board. reducing We have this that further. our a trades base? do expand it. buybacks is our discussion challenge something peers full of in The discuss that What growth to stock impact at one how undersized long find does discount

So a always where that says broadly that value, stock Board's our the specific pull. isn't we're of XX% view book, every and and There a push quarter. of going those we're relative if a to trades management's and topic to discussion buyback. in answer do at view the -- of are terms But of it's

nose under-scale, to as it a has your stock did you that. some back makes new in the more terms to just years buy the of loans. couple totally investing But ago. at think of on I'm offering I really in just your sense taken point, dive since to ever stock trying a get Well, opposed rights And point, multifamily

and alternatives do certainly, and and Board have think the we discussed to options, continue that, that we'll I so. those

we no have registered. this proceed. other at questions Mr. And time, you. Please Flynn, Thank

for speaking you and want forward to and again interest, next Okay. Thank time today all. look your quarter. you all I thank to

attending. again, Thank this you, lines. at disconnect day. the we and conference conclude rest sir. time, today. your call Once your please ask that does for your thank this Enjoy for you of do indeed Ladies And you gentlemen,