Bridge Investment (BRDG) 7 Nov 242024 Q3 Earnings call transcript

Thank you for standing by. My name is Mark, and I will be your conference operator today. At this time, I would like to welcome everyone to the Bridge Investments Group 3Q '24 Earnings Call and Webcast. [Operator Instructions]. I would now like to turn the call over to Bonni Rosen, Head of Shareholder Relations. Bonni?

our everyone. review the financial Slager; our remarks comments morning, conference Investment results. and Good Morse; include to Robert Katie call third from Chief you. Financial Welcome Officer, Elsnab. Bridge to Group Prepared Chief Officer, Thank Executive Chairman, Jonathan Executive quarter XXXX

and that from session uncertain include may forward-looking results. which are We Q&A prepared not duty I'd call following will undertake hold materially like statements. to today's remarks. the may firm's We do update control outside the actual a to differ remind you any statements, these

For the section results, of affect of a Factors XX-K. please Form discussion some risks that our Risk of see the could

to metrics record site slides. third of of turn pleasure Directors discuss available website to of dividend will December event can $XX.X income of will declared call, $X.XX During of of are to non-GAAP or The a the is the XXXX. in were non-GAAP also the Class Presentations certain to under for approximately quarter portion paid $X.XX our third Bridge Board a It tax, over the These diluted are attributable basis, per the the call after company now ir.bridgeig.com. per during live common the was million IR supplemental December On They the XX appendix as along the $X.XX. GAAP our metrics. company of operating link. We net accessible share, our of stock Bob. of webcast. per to on and share on A The be net of with share Distributable million earnings reported materials supplemental financial we income the be X. call shareholders my which earnings slides are provided at found reconciliation $XX.X the quarter also of

this a to morning results our all. to and and and Thank pleasure outlook. to you share you, good morning speak It's Bonni, to

to estate winter As and verticals, of interacting and our long assets of selling are force, substantive base capital investors, raise daily investor specialized the XX,XXX-plus we more evaluate buying more assess and and begun our dialogue that in we more but activities bottomed real declines activities. to sector we believe the full seeing deals with our Not with reemerge. has to has across generally

As asset look up. investment fundamental there why alternative across the landscape, are reasons has activity we picked

part are public in classes trading asset many reset even all-time estate, gold, Bitcoin. value So in around due equities, large Real has the or to rate highs, broadly defined, environment. at

the see at average since the global sectors ultimately this point declined years. investment declines value discount cost, a real by on within financial replacement in Although pricing values XXXX with an in XX%. over to opportunities decreased have offered outsized We attractive the today. assets resulting of reemerged aftermath across echoes peak buyers When and environment ensuing vary investment XX-plus of Such have crisis. performance for values estate, entry meaningful the

in in of third debt $XX investments. deployed of rates cap end, capital assets at of multifamily into were lean outlook $XXX tailwinds in deploying million will We workforce our that quarter XXXX, it recycling sectors, capital, to precise several the of them logistics and . In detail but where focusing deploy in selective in entitled $XXX vertical, XXXX taking we we we Navigating which only including Curve, is opportunities, also of these outlined our segments meaningful active million strategies think we acquired to the appropriate with market buyer's advantage remaining secular on further assets of capital. Jonathan million a As and selectively not and behind attractive

financial still and results muted over opportunities well but to operations and In an increase deployment Bridge's improving remain the several opportunities position capitalize the to on resilient ahead. quarters. expect next us business, We environment,

our areas competence cyclical last expanded have the peak. since of We

focused logistics on logistics manufacturing industrial in and have on been institutional strategies, one and equity, X one have lease value-add logistics We well core on infill that net received industrial one logistics retail the developed and markets. to

top a secondaries is a net financed wealth been a upturn, balance team capital. to performs capital, result have which investment raising local either which place sheet this with And and have performing, markets further New The numbering investment team small, bridge opened single-family professionals South strong or over we and a via a via contributors add. Worth, sheet, going now the distribution We that developed to business in anticipated of and income more and into Southern more has are high-demand logistics albeit broader decreased Dallas-Fort have specialized now highlighting these rent our area capital and capabilities, XXXX, expected the initiatives offering assembled attractive have a come. marks. strategy New investment in for by distribution Meadowlands balance Jersey. with illustrate major we of opportunity. want resources offices in of We XX to previously solutions California, Since FRE Florida high-performing best-in-class. value All York, I with point logistics portfolio off of have PE meaningful that business, more a be DE, time but have statement the prespecified and we

acquire $XX in area of than first closed-end our $XXX closing first vehicle, the in our developed-to-core its more entire to raise close logistics and of in capital business. invested less the it fund raised in million build to cost SMAs the We size We $XXX logistics than what vintage these capabilities, first which first value-add million vintage. have expect an substantially would to existing million is next our value-add fund

create, well addition, to will major company dialogue businesses million regarding a one it a result cost We In contributor so-called this profit and pension that in we the believe nurture results. initiative, and vertical, X in specialized of recognize which teams Money a of advanced in very plan often positioned is internal the as earlier practice developedtocore us XXXX. but drive example an equity are over with leading future. logistics internal multiyear in Bridge's capabilities development of deployed has to SMA. state zone the opportunity, although the of FRE billion our since vehicles $X overlooked $XX opportunity operating and of create initiative, spent, characteristic same to best An

capabilities, capabilities we to addition and developing invest continued the abroad. have above, In distribution domestically our product in to both mentioned

ever, are in year. meaningful efforts or coverage institutional are XX investors institutions stronger new this we've Our as and than closing process of added the

major We've increased penetration and expanding XX% by XXXX. important we consultants. with to pension funds our time, this year-over-year some capital based For have expected focused also for on raise penetration segment on

Middle already last retail our to We have already progress accredited office in opened we continue strategy to domestically. Eastern Asia made further We and base, LPs this investor investor introduced as Dubai an well in Europe quarter. add our augment significant as in and We've channel.

several Our net lease strategy is major with custodians. industrial approved

strategy this have We've success and fourth partnered major platforms quarter. We expecting the to the to in to escrow of have broker-dealers and our offering to believe demonstrated a several with RIAs, expand leading wealth discussions are the be some in differentiated of with independent early distribution closing market. part for what first break our we

to still While stages, in date. early by we've we're we are made the progress encouraged the

in in of a raising by approximately $XXX efforts, and million led strategies workforce quarter, $XXX the in and million we raised debt $XXX affordable third capital culmination housing. As million

We solar $XX of our had million into also inflows strategy. infrastructure

capital see business, continue meaningful our we both in repeat have secondaries engagement We and expect to from coming the and flows to quarters. LPs new in

the to even right we Third focus on from such manifestation believe, second I quarter we the why will stronger. determination over call of will LP have be confidence the expect Jonathan. in in This, high-quality and teams explains our we quarter fundraising that, With sectors increasing our demand improved sectors. to quarter, in be fourth investment the and and turn

Thank morning. in property optimistic outlook much of to signs indices year. is the estate There's prices up positive XXXX. real stabilization for about commercial with index you, price continue turning late Bob, Real show XXXX. in over good and Green commercial in Street's next the to bottomed in major estate X% XXXX and be

an quarter, market. transaction meaningful in improvements quarters. anticipate CMBS to impact increased The the positive We also Our of by and market rise portfolios in a and debt valuation for has reflected be in illustrated is the begun were the markets volumes more just improving coming significant volumes and yet in capital in narrowing improvement a spreads. the issuance debt credit the of

a in SFR points our noted we've completing SFR by Bridge debt our business XXX in capitalized November basis Fund As 'XX. financing securitization securitized prior to IV, lower for on than quarter, this last

$XXX capital, quarter. over lending biggest debt X fully our Another loans recycled not which captured vertical over transactional totaling this XX numbers was of being its green our years was strategies shoot this for quarter in deployment originated, much with quarter had in so million

Bridge first-ever It Mac of totaling with with the preceding real improving was well well choose and was Additionally, the years, first to CLO its issued $XXX Strategies deal, which XXth deal Harbour million. in our in over issued debt Furthermore, September. Freddie the Bridge Group CLO we X deal multi-contributor anchor greater business. equity activity foundation the every other the received estate overwhelmingly liquidity the oversubscriptions This of allowing CRE deals. issuers side for in deal provides on market transaction our to price tranche, inside on Q offered

building, is at still our debt totaled estate volumes and million, teams transact transaction to by led pricing. remain real levels, $XXX momentum investment for normal attractive far Although overall Deployment nimble the quarter are below strategies.

basis, largest had $XXX IRRs segment, select to investments a were We pickup as of year-to-date better we XX% within multifamily, a into are levels. lean unlevered our multifamily to underwritten in activity within our continue pre-pandemic than that investments. on million Notably, also

we product the significant in improve, will portfolios were widespread continues pipeline, inclusive markets debt in our as through is XXXX. X to the credit short large-sized In end come to and transactions. a see well see of a of will $X.X debt first market as that curve and the of medium in we recycled On relationships the strategies, capital. if active expectation are billion beginning QX quarters, lender-driven to that significant multifamily deploy off-market side, the volumes in sourced to amount remain view There a to we yield able

rate multifamily a the product average dispositions. year-to-date our have continued a as been IRR have with gross demonstrated alternatives. the properties dispositions come owners demand reversion, In users multiple once the have for limited, limited available have super prime untouchable and results with our more and more seen in While on we interest vertical, of quick and logistics XX.X% private liquidity markets X.XX weighted

Despite time exciting is translates we X% finding of the some yield. spreads this early price the XX% multifamily fund strategy. next opportunities This half for peak units, with delivery approximately X seen to widest units where of and an coming point peak can units. to we quarter at XXXXs, this XXX,XXX units, stabilize our since series making to entry pricing an point XXX,XXX in our above assets levels XXX,XXX we Our approximately in are which exceeded this stabilization have is in under laboring total bringing levels XXX,XXX absorption of absorption average pre-pandemic near QX,

in continuing strong demand much We deliveries similar picture XX% expect are starts compelling juxtaposed multifamily down absorption picture. QX, more gets but a off as peak, the and against

we On levels side, has impact the on at just are and rent The behind deliveries starts the multifamily only just feet. have a slightly million XX% nationally supply growth at XX similar of peak multifamily, high story, impacted side. X.X% industrial square off but

single-family most some mitigate effective our recent logistics However, rents In exceeded underwritten have operational net to who NOI by and reported our ahead to portfolio, have Bridge our we of occupancy XX% public a maintains X% growth of the rent multifamily peers by average our X.X% date. our life and since XX% over in projections we XX.X% NOI which this. rental exceeded inception. of value workforce first is performance our in range. just allow growth and growth, Bridge vintage, blended NOI year-to-date In vintages, And on X.X% solidly have skills

performance. turning Now to

our a we positive in up QX earlier, for real valuations, X.X%. had mentioned estate performance As

historically, estate, especially downward as the interest have positive before fund rebound. real valuations, yet the is transaction rates lag While is in for this a there volumes is to reflected fully in movement commercial

positioned of following they troughed We encouraged since XXXX. by of are all pointing resulting from XX% October in Surveys of values up improvement by many and indicators declines both are such commercial cycle. in XXXX. and GFC, estate, entry the invested From own an investment best-in-class all public attractive signs rate the real of According attractive from Bridge this volumes PERE, most call interactions makes them indicate a I'll scaled leading as out estate of of emerge point. hiking recognizing participants in in sectors over and reminiscent perspective, the real an in secondaries, REITs we and significantly PE teams to XX% our increasing institutional CRE CBRE to significant platform. investors the nearly see values underallocated the that turn reset real half well more and volumes are estate to to are commercial indicate over Katie. that even building has are compelling private that this they downturn in to in now

we you, Jonathan. last offset lease Thank open-end of X.X% income property operators that partially last operators. driven onetime will in increasing strategies. call. anticipate on housing inclusion workforce earnings We property $X.X QX, our the management was included strategy we related from benefit versus by lower from earnings stability performance increased revenues income crystallization this exhibit business of inflows fee-related by Bridge as business. by on Fee-related which the quarter. in continued noted This million from that mostly the in to net carried Transaction last our revenue $XX.X QX. and fee-earning impacted revenue decrease was flat The driven trend into to our lower of by a part with increasing carry The property item net the line vertical fees and from due smaller quarter from a was last asset office earnings discussed to overall Bridge's quarter, and net roughly and Bridge mostly other the affordable of AUM was X% were for future. interest becomes debt strategy other lower million, in quarter,

deal volumes the to real As be in improving. appear Jonathan estate market noted,

always smaller revenue also of will CAGR would volatility, a to AUM mix X.X since of with grow duration the transaction-related of I management and estate the highlighting invested recurring However, continue the long-tenured business. years. stability Fee-related X exhibited on the and past capital to capital transaction XX% underlying attractiveness modestly focused years of XX% has we expect closed-end during a more scale as funds be revenues remains due at we in real of fees our we're strategies. our of Historically, the profile. grow of grown as our average percentages performance our weighted raising. of increased the $XX.X were we compensation-related indicator million higher fees earnings mostly in $X from note future million, compensation metric for to have This a with IPO the by excluding better decreasing to $X.X performance approximately last the operating associated in approximately quarter, company million, attributable revenue. expenses, which fee-related has

the We downturn towards growing X.X eye careful cost have years a last fee-earning the AUM during weathered by management. with

long-term the fundraising of power our platform As is record earnings reinvesting driven the positioning for our company on cyclical substantial, The as started has outlined business, begun up we brand, our recovery the earlier. by people. growth track including have the investment this in our and the and materializing, by Bob of platform, cycle the sides of

with net a million insurance the insurance along $X.XX. associated claim last expect the grow of our items million off onetime loss decrease $X the Distributable of earnings side, QX. earnings, we with discussed versus last in a fee net operating The $XX decrease large within quarter was with approximately were $X.XX loss quarter. share to for people adjusted approximately gain of captive. $X.XX, the compensation the due $XX The of a million On a million included company loss $X mostly expense after-tax in per $X.X of from to representing fee-related of million a to quarter,

claims reserves higher history, impacted our IBNR claim for in $X.X quarter large also the resulted which of the million. Additionally,

quarters, is general will primarily our Our next within Similar more few to performance distributions the income expectation that insurance fee strategies. quarter. to positive levels realizations of tax consisted stabilize normalized debt last

IV million, XX% to a to call distributable on With performance related currently company. of As leading the revenue closing arrears. X, compared drive interest Fund of flow expected accrued ratio to sheet is monetizing in which quarter recorded back a Bob It's to remarks. note to operating the that Multifamily I and waterfalls, are performance XX% through important slightly realized fees where balance of that at that, through With earnings Net of European in stands for quarter noncontrolling the reminder, substantial this now and for increased vertical XXXX. XX%, are $XXX.X is to these the funds is last some assets. X carry hand to to will we the part the gross latter Workforce the XXXX like would

managed Thank of winter. you, X the real the expenses has Bridge years carefully through last Katie. estate

seeing values recover. are Now signs early interest, we and beginning rising uptick indications a substantial are volumes of investor transaction to that in

our is take to teams manufacturing these the investing our this growth heavily Bridge, to lean For by future time into opportunities. advantage in and of distribution

we our proving FRE forward performance although will much business We historic meaningful more will call renewable logistics, commercial rental investments lag and I quarters secondaries You With supplement earnings and emerge. and capital, like made the out more that, energy and several in for questions. see deploy our trajectory which to a real become income. distributable estate-backed have as presence we and in financial the in raise scaled believe see contributors open PE the fixed would planner you our going residential may now to many distribution, after will

of Brown And Securities. question your Wells Mike with Fargo comes Instructions]. the first from line [Operator

like kind just guess, will real could transaction maybe from I think in one, then could start XX guess, side; around backup trying lot by more time sounds like fees. retail of put estate color X that play when we're yield. I a in or that a Can outlook just bit a add in see of And to the thought do and recovery but how we then pickup that, I start the And here, places. point bit to you fundraising, main is to real a the of the happening realizations. guess It I we the little two, just next seeing over up, wanted on little to pick market off maybe XX a there to months? finer start outlook. particularly out maybe and kind here

that, recovery? of think pause? a of curious if bit the that that the little just So pace you moderate of gives could Do kind you

Yes.

the very going your question, respond the rates that, has a neutral to team had interject I'm This rate I unfortunately, Allara, and line client And Vice end please and want, the to perspective for additional early Chairman, later of meeting kind to overall. terms -- meeting Fed is to job. I their sure question a be I to far, of of couldn't who's that to important of the a expect provide down do bringing leave Slager. has I we respect to feel with before client it. With support overall, the of that to sure and a of to have be make so it's the for able an start a first support But solutions impact was the and free to Bob Jonathan to that election outcome Katie. real raising multipart I So getting job the on notes. not seen I we think is curve of commercial able I that all our miss taking your lot continue last the trajectory on have something, if estate today. and and I in move. did capital great think do Dean of change. all we've Obviously, rates question market, related in cover what and the closer myself they expect short questions mention But us to the be and days assessing the addition overall they'll our whether to about Great

that's in the expect And so-called buoyance in slow some and transactions of the a among that we so optimism demand has is to coming talked significant but volumes that There's new down and run the many market bring that's talk and lower real as the to we that a and there the to transaction come also, there's the pace be of impacted that in, pent-up about we've loans estate impact Trump about loan place the refinance fact trade flow take recovery been times, loan to significant transaction to can't force values, yields, take short place, of going for at capital amounts. commercial pace that back that the as we will the expect into we meaning still borrowers of kind whatever wall many, into despite to participants. and maturity there's a expect the

we dry see the demand. And that overall again, is contributing. And a and powder of tremendous sentiment there's So amount optimistic. really we're

XXX,XXX. I about we script. the of units the in my absorbed talked mentioned in opening We deliveries were my think the that remarks absorption versus XXX,XXX

getting of expect we're XXX,XXX demand the multifamily the in last obviously, and for of is really commercial that the real be one units the So side. growth. all the on X the of And a is back And strong, we under Trump strong. administration continued continues quarters towards deliveries good estate. going positive to parts expectations that at to the end of But continue

front-end recover, So we're the the pace do values for end and debt. of yield values that curve what's challenging down, on shorter will again, at start challenging ultimately at has and of normal which curve And the expecting shape with pace recover. is hopefully which a time been show rates to to especially lower kind long more the come a

my is looking think phone, there to broadly and amount but strong they And industrial base. is out to is day the really now our X place overall and talking been have I of into that huge lot think a Dean LP enthusiasm. commercial in meaningfully paused the he's to that in the we actively speaking, which market of allocate allocate suits are real I Bridge. see to want them And they're response there's So that's estate. for that terms every on multifamily, of and allocation a

Jon, question retail add, I'd just fundraising. your about

we this on expect a we that vehicle quarter. have So Escrow that will we break

We custodian on a as on number -- that. are with a We're to of look We're of likely about that excited wirehouse platforms. pretty in couple larger we're on to type breaking multiple it's as future we well. folks Currently, we're escrow put it way. dialogue because the RIAs

right time in the but So well. distribution multiple what's expect that we only sort be pretty the coming that is worth product build to good feels and quarters as have all as not happening, to out continue as mentioned. the we'll pretty momentum marketing as well, of that swings as out mentioning we positive, obviously, here, set being is Jonathan products I built the think, we over the Also now, expect

So further questions on that, but just...

we Did lot of questions. Dean. multipart was miss a that Thanks, anything because there

that to you feel covered there, I want Mike. make sure got like I So

for Thank think all there. I Yes. my you No, hit you sub-questions X X, that. in

And Dean, for retail thanks, Fantastic. helping out on that one. me

No problem.

said fundraise, it. we retail You got

of here -- on And if ask just a theme leverage. a maybe I operating follow-up could kind on of like

some we about side of also flagged the in out making in the distribution. investments lot the logistics you the on and that as that's been talked making the playing investments about So recovery you're and business, think a you've investments the

building leverage. 'XX that's then and in scale that again, come how that's through and of the will to the to of how curious and that that balance 'XX kind spend you in in against, relative operating terms Just through that come going think about recovery investment platform level

you Bridge? are investments? Well, want clarify Yes. the the to to leverage, overall referring refer to at you to sheet you I when And referring are balance operating

through just of kind kind expense No, growth expected of potential revenue the I'm just to to clarify, relative thinking growth...

Right.

remarks built Okay. positive last side. national we've Well, keep the very, I we opening and logistics have about on for very years, few -- the out a his in I talking note, to team, scaled what investing, that referred we pretty Bob think is on think but

don't we growth. to of and huge is So a team team do Obviously, need place. amount the in there

start now maybe of that what on we've greenlit it's -- -- we is X thing development construction development, work projects. ready -- And done construction doing incremental of X other significant And are which, hire don't getting go. us development. everything projects, to generating the are X and lot they've The which in fees, and -- side folks. to Those the logistics is again, like those a place, been have to will entitled development X already all folks require

going we're coming through the see on line. to drop start bottom will that side, to revenue and So towards through that the

back in investment to logistics So the turning the say looking start at positive we've look very you significant made a few XXXX the and you in into over you team, particular, going last of in and half years, start that's XXXX.

the to just wirehouses, that be something made amazing toward excited we've to going coverage institutional to our distribution. to continue but our investment, some not really in -- Raising inroads a there. and in been and of we're So you transitioning cover have the different add might through Dean, expanding some is significant how here, it's about that. you invest to With our institutions to want respect retail and really distribution, also is the than Dean retail, we need But when progress maybe, to we've regular about made continue capital way retail. business statistics and

Dean. jump in, maybe you can So

absolutely. Yes,

by team a regards of the distribution headcount our make by X up distribution. over here To investing past sense, to in comments I'd So couple years, Mike, give a you XX%. is as it

that hires and some the execute significant this as in -- start know that executive pretty that at retail grow that -- there. filling to we to But don't that level year notable extent. below I if as we've made So we'll expect well over will -- we in and --

that's that part. ongoing always -- been So and an

look grow always we've invested to think and overall. distribution I believed as we in

don't that I way. -- to don't it we're I'd think, The I of I So exact some continuing investment, at to our success, I to of see that still quarters. we -- sort through to have There's takes a give can't see just you higher. degree. launch And want put but retail we're then I that. that degree. that stopping numbers, not sort doorstep set expectations starting this

have just new, of breaking institutions know opened seeing global. space. mentioned accounts and So We there's that feels in had new there. we right. think -- -- to -- new I'd space, of bring that the which execution Bob lot a we XX white accounts year, the say, I we've new Dubai. that between Institutionally, we've office white those just in the institutional It's is ground We're we're this going are is

So here capital. some but to We're additional European we're seeing institutional U.S. world. seeing the in capital, some most We're Canadian, pension Middle U.S. new and of the seeing honest be more capital. Eastern

comment consultant in I and think other in we've well. much as XX% there Asia capital the in of then mainly is -- we're about parts the was the year-over-year U.S. of consultant Asia, got but with a as And harnessed that traction seeing coverage penetrate in here the new are seeing increase we institutional growth institutional the side Korea, we

additional if don't part that second that but question, answers of color there. your I know So Mike,

comes with Worthington Your next from question Ken JPMorgan. the line of

up follow to on that first Maybe Great. question.

are XQ? end Newbury? fundraising saw existing for outlook it just funds bigger you funds to we of in it And a that Should into magnitude in in that expecting more in XQ? better mentioned seeing we You contributions improvement is XQ. relative market? What is is the close up Or the

we specific for to Dean, can think maybe I flavor a what And as know you where as but be. the energy is. we Yes. -- want can't them give you Obviously, be us --

going the to think remarks did we logistics thought winner. say I a we that is in be

hit give me directional here. I'll as you well. some Let comments this

to logistics, see see plus maybe can can't I don't we're be that going QX that -- QX plus. than But that, will make think feels those we're numbers going we more good. some in say plus, notable I I to very think. increase

also them world. the call in X We have, our we horsemen

now, debt workforce. have we we debt, have have We -- right

We we logistics market, in the have have Newbury. and

contribute. those I And so will all think

expect, might and executed -- say as has has executed, Newbury, feel to The the mark further comment current this just good there. it in re-ups the the on the re-ups good. way. pretty team vehicle been that, on initial you have investments I'd this

their what over done the to pre-GFC they've back days. they've So history done

the think the over the matter I gating clear that it's but cutting as to thing LPs now, traction seeing across coming And there. also that. traditional right cross-sell is really to feels And quarters, coming I'm it's clients be quarters. of the current as their like liquidity about we're sort well a loose so bridge of going

if get I that it know don't I all? So

Yes.

Okay. you And compensation. That helps. mentioned then

or last is that think jumping higher we've $XX the of accrual said sort earlier off than comp this million point. I year. right either seen you year This a was

payout Bridge step-up sort advance pay-for-performance a as what's seen as driving what all we've of to think the of and Is of pay that in shoots. having a you in company. the compensation sort performance? Are ratio? now So we -- mentioned You green of

also we've incredibly script been and excited into fair, this Yes. are maybe say it I'll very in really for start tightly values, expenses, with that been we're phase important expectations sure we I have all, careful is the because teams, high be to we've remarks significant mandate to make in. might want maintain morale, in but chime and coming Katie think where Dean volumes, everyone managing increase very the But Ken, obviously well our to improvement that in positioned. and/or maintain about I we think everybody has -- an

that think the you're to investment the team raising it's excited. capital we capital both deployed, be -- So to start going team time I and need on We the and think perspective flywheel is motivated but our we everybody side raised on And is overall capital what get the to of need side. excited. seeing

we're we about comp. that and bonuses super sure being stingy so not make to And need

work. Business the lot that And making sure higher is it of going we're just kind staffed to of what accomplish everything is to sending going that team we message a growing. our is to appropriately volume the confidence much making be sure able right there and then of total so is a to forward, think be about

that's We the teams. think the is news encouraging I growing. our love is business

solid. have want keep to and We great teams, morale we

Go ahead, sorry. Great. Okay.

I and greatest now our our in to that are would employees just is invest time add them. asset the

Yes.

have follow-on, Ken? a you Ken? Did

already is Ken on think I queue. the

to Cyprys, Stanley. question. go next Morgan the we Michael So

terms what backdrop question of maybe multifamily. in there, in on unpack was you hoping what I you're a the bit Just that deployment more a to could see. expect seeing you

And lower, catalyst there go the but do end they higher Curious the ahead, to yields sort of as see moving curve how the back-end if implications improvement short the of moving where continue seeing maybe from that, pieces. of the some pieces to as that? implications are unpack were you higher. the bit you a mentioned around volumes back-end also you even moving the how today, sort for of can You about move look think of you We're a yields there. the

it of Great a know that. curve the Bridge treasury yields our Yes. of because and the I The and bulk is around of what involved that commercial of that's way That's let's curve shape But more activities. of investing all impactful investing, lot real commercial estate -- primarily the the is estate shorter yield value-add current question. thing. for the think there's put debate I in. much end a real

those, to, do on guys. X call of the real last you banks you, significant issuances tighter of available. that markets to they're a is month It's hey, having seeing we want getting and that's deals of and markets, underlying the years. it, literally X CLO X-year us And provides We're all basis messaging now out that with regular And getting call debt to And the we've important the that inbounds for in saying, also be resurgence market were we part the from done up who X- that securitization in it, the liquidity. the gave indices you're that those. So important. we're markets, active calling

to the spreads So going dry are that tighten. funds between all think me what that and I that credit sitting to that means the in that's is powder

that we a really really the accelerate takes of think my of from to I of end of the good question it's reasons So credit for X But expect we a will for it can available for regardless the increase at help and already manifest. curve and it those of residential day, just but view. it. focus. I long yield And time spreads much and We the And to values, supply-demand the expect need and do industrial. how bit little are some the takes the short mentioned tighter we we a volumes end have values market. And in dynamic an can how sectors the and volumes where

the think that's I response. -- that's So

follow-up And a Great. just question.

some to and NOI SFR if the rent how on And has other like elaborate business. trending? the stats And looks mentioned you curious how growth, growth occupancy then been rent some I think and that you look sectors? do occupancy into you expect year? next into 'XX, across and for that of as you could growth, just the But workforce NOI what multifamily trend

Yes. Go Katie. ahead. Go ahead,

had general, same-store about rent in revenue multifamily X%. X.X% The quarter-over-quarter. workforce So in we our housing was growth growth

the really well. market. matter overall, So et a valuations, of assets a And very are performing it's capital cetera, matter the just of

of coming. just multifamily nice it, that the takes on at things deliveries of to -- So -- deliveries. absorption nobody it an appear right? that, the view in I particular, the repeat are it, idea their end peak, it side, right? we knew a think we to and seeing I you it on back but our real give time is forward exceed are So seeing magically build -- already And And mentioned that's one was it's Yes. long estate of about that to doesn't

So and kind absorption. of down absorption, we deliveries levels pretty record can see that, and view clear have forward. coming they're have we you and that's a down very maintaining very they're And on good view on hard a of solid

And so those X dynamics give you a pretty solid picture.

either new decent that of real good Bridge construct estate. to have we to if to lower be lot a of create massively either see you investment. multifamily. Well, order either in those, supply-demand in and good it rates order return one those don't to of rents to is they today, thing are able And have other get pick supply. of a for new we estate, both to grow compress the don't justify for on are expect industrial or supply of story them initiate the or dynamics to. that see to And new real continues cap think or you we to inevitably real to happen the going have I And cost both estate, have as the

Securities. of from your And comes next question the with line TD Manu Roberts

to come comments. I to Bill for on of Katz. wanted I'm back some prior your

outlook like third and rates color in look came basis of XX% will might some for your from Given the that against fee give quarter I inflows institutional, XXX the what revenues how you wonder could quarter? that if impact us points we on in transaction the saw management

Katie Yes. you to guidance. some one I'm going to this give to more give

I think she gave some but... in remarks, her

Correct.

about think we if are strategies, investors. institutional quarter, which been debt primarily the has primarily related they inflows So the during to historically our

to revenue across as well where as what we're overall are the total seeing being change we'll is fees management percentage mix board see with that rate see a investors. we greater are revenue our shift institutional transaction lower in investors, to general, in So time. fee going we our a a over Traditionally, institutional a seeing slightly lower of

scale as overall our -- and think is to business And to diversify, and that percentage but that growth to revenue. revenue so lower transaction you we when see grow of be growth, of going fee going you're about a continue

Grea.

again, of fees through scale part did zone have I But XXXX, was flow being will that back some smaller transaction those viewing really look point where out, that we our mix as to off them, you had think funds investors continue business. size. But the and were to large in today. you we institutional business as connected in our deployed the where have growth place in of transaction character we're as we you fees at like of opportunity again, where are fees that fees being transaction when investors of there's it of the it. And don't long-term generation then in overall become impact have transaction the what

call. further no for this at question There's joining. all That Thank time. you today's concludes

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