and based the estate on management estate as and of increased economic the were a think noting colorful cities values estate asset just caused balance that able real Rina, maybe every has rise consequence and data a and sheet safe -- come I real real their But class, real class consequence. Thanks, and fireman, to there, reflect crisis. centers. cities costs worth unintended And for taxes cost to everyone.
I situation. wrote municipalities but drop our waste press yields on have to even release, municipalities and -- Jeff. be do But distribution Thanks, every and thanks, just morning, nearly capital. will the estate affected this a quote It's it's good Zack, schools. in industry down an police values fund material We values won't
towards and were we're rates headed they victims So X real lent. the of basis point unless their current Fed policy, XXX has
of the X%, $XX year. is themselves on first over saying trillion, The X.X% government X/X rolls which this
the interest the which estate the mention book. cannot of mark-to-market not are the industry current to solvent probably be regional mark-to-market And would third real second real securities banks, in with not trillion estate on stay The the these complex. with entire the exposure, or $X.X rates, required
We the to May apartment showed now adjust And and that no And of 'XX, the years they're rapid then stay are lower in in actually when falling, rents could it, easing to the course, statements increase, to the its rates and residential X.X%, the into they data an But going XX fact the level significant sector. it rents we in of data that their increase were relied on all flying, for December stale rents before. Fed issue. X/X 'XX. of very we've the pace is were so talk delayed to in showing a of me still increase inflation. not or of longer People about of simply the and, the adjusted CPI,
So earth. And now when and more happening increase food. It in they governments, energy causing other to and on it's they data Fannie economy would that's both residential their for want because the global not markets. than recession, we and a minute currencies that Japan current need apartment residential parts They use the Fed really running clear find take why call rates on actions. of and in would in see have the for we in you they're not market, for use the the markets the Fed's Freddie data Europe. what's for out and to current data to of defend the Based and
the And the hit hit the stimulus don't Fed that when current to as for books the they of the pocket their people shelves pay attention was shelves disappeared. or fact on trillion policies, allaud $X things
the $X consumers trillion. supply running money now was which And of goods. was chains much its correct the to it obviously that out chasing had too going too are inflation and few fixed, And simply what so own, on
or and anyone impact economy cannot of they job the interest or in saw thinking crushing healthy because health fiscal continues month, governments, market -- continue your labor the layoffs -- sector. Goldman spending, healthier created. probably would education most the the can in which And banks, store, to jobs banks, the would at be anymore. hotels, airlines, the of the to half sector as all in be Sachs, the other have the investment be does you left include to last created that retail the and care economy real the force health what's than government construction rates that economy, a land is all than with going anything at government careful despite They're losses going local expected. only we're do you're with -- and And care, spending continues not pace, When It's plane recession. softly. the to XXX,XXX this with to thought we of have And that job be services to getting
classes the all in differently. asset impacted have Now, been real estate
to are of not to been of market we've up in which news to from shifted is it multifamily we but to going line in X/X confident eventually some of is a being or -- is markets -- why this, there, see CPI. assets is absorbing see out causing come You're complete number is weekend, apartments, total the the but wave it XX-XX rents that good XX-XX And single-family apartments, rents it single-family. and and existing down numbers, apartment and between the show and it's the of it CPI inflation units completed will will continue single-family
expect -- end all rent apartment units fortunately almost new 'XX, again growth and complete middle of the the to supply die be That of those markets. see we'd accelerate at in wave will of will
these space, for the XX% back. to would like apartment assets get I that we in book lending with reason, of our think
we is cost. borrowers if our loans opportunity with we our they capital will lap. We assets coupons best us to super can our lend be at the if do we fall typically to We're get make would back money, in back, while into frankly, actually -- of when if basis these money [indiscernible] are we were our our XX% buying attractive. it well-positioned have more -- assets more make And our of give
loan as default. X basis the mentioned would the And sell at We've in we of to only very the it shortly. expect call, had
you because while believe, aware which there's -- rates think the believe passing they're banks, the end both us the they in light And of I resi and done I'm -- believe, pretty were when that us hiking, office, losses tunnel and be track, of no even all side exactly at of has are sure Fed markets, of of cannot at industrial is yields very in consequences all market the teetering But the going us of that I interesting. to the being that acquired lower most yields. all the longer believe regional
in the real strain is estate there markets. So
We are in the ship.
boat. the in are We
be We to are waters. some to losses. going navigating these okay. We're take going We're
even in a borrower these the tenant and that or lease if liquidity, not of the Jeff us, improvement tenants that may do in -- funding a and because have may called -- $XXX net the heads call buildings. of company be worse on happen, XX% a amount when really We or the all funding will And And these they of ourself not -- the into goes TI, when is actually -- he money that future up it's goes which massive worried calls set with decline if XX% -- construction, building building. it's that he's committed puts those is of million happen future funding fine. you to mentioned, news, capital good the
ago. now, we've that I in been, is business it's double-digit It's ever actually right biggest we to I gee, from, got we're So And book. since continue energy we delighted think attractive providing a diversified a it's business which that the model. capital space think, bought years incremental -- very We very started. certainly we build invest that the yields. can
pretty the that in markets X the strategy the are quarter, the is of it is the open board healing. XX, we've strong, the exit new spreads at And end to conduit do first points sign markets XX credit basis down, coming probably last good the rates launch the anticipating are wide in, loans. tunnel, and come the are as coming markets I in are a have market for this a AAAs who notable just light to -- CMS about the had That's trying borrowers the act are repay months. across and
I now, even asset and the in of But hear conduits just really in office secure and and was it's is might the asset its like if favorite is to portfolio. at [indiscernible], lender. but office finding its to the one groups, stable way it the XX% and XX% existing now probably into have of securitization securitizations
you are using our But So figuring that case, out a and in our playing solutions, combat, really get pretty hand-to-hand what comfortable in partnering very Europe with period. challenging be our think to secure, workable will organization dividend through borrowers here entire and we is I comfortable. our feel
dividend we're liquidity Our of us. all payoff through a very additional Rina's things the Jeff's book. that provide And the significant had for other mentioned a we getting a of just And loan And large and there loan, to comments future. be are foreseeable some this. cognizant very will will secured are really of in that in
but Sometimes, it really reposition office a actually capital, visited building. building lost, I've an we you that apartment took our announced of a in asset taking an that we as [indiscernible], of out D.C., little -- equity unfortunately. And quite bit book. in case, beautiful. the But just we'll building. will come beautiful our we It's take borrowers will don't It's have Washington, recently back an -- know. [indiscernible], We'll be
company, anything. that I assets if the much, of when at aren't $X earning billion we almost look have And
could we've as and things on redeploy rationalized power earnings return capital investment. additional a that's substantial earn So that the into
still that here as and of And going Europe our playing news have and us. for go, have many opportunities actually very repay. and office -- that the maybe good we opportunities team it's is repay. careful a XXX% is to still we there, peers, a an the when what to It's XXXX are be often to that lender, loan and know we be we sees finding how is We leased. This but much started through taking good the Unlike we in we actually time we investing. are company,
And so our will office drop. to exposure continue
office biggest the one in biggest think You one, Europe. our
of So portfolio the complexion is solid. the
$XX have the billion, base. $XX billion book $XX against billion, million a We asset loan $XX
commercial wind servicer just mortgage are continuing just up would you I that to many are businesses not them. wonder in a [indiscernible]. is a that office businesses, accelerate, who ROE these today, say are we higher like But buildings lender how the lot So are have special to we of of a -- going other
see you and that of case and but they themselves, can markets loans, cover refinance. real have prepared debt have thinks be service, anybody will And the yet. people a lot their that still if they And caps estate on cannot the just wouldn't
rates, Although we Fed points do real will exposed rates points course, get believe that that, of of better this XXX we're basis in where expect lowers basis we classes of instead XXX if much the rates to. real faster many asset
not like leased pretty where recently X% the is has East I and markets were unique. the in to last Asia. XX% returned markets. or from Same done U.S. everything the Germany, Middle construction European the much are office we've rents They're in office and up in preleased, true The year,
only. really which in there you buildings, B are good holding this tenants U.S., And a phenomenon C. and bifurcation between have remain U.S. a really your the and full in So the the is actually
So buildings, have a of power, which best at in many to generic get might alternative malls probably market. include we'll I B U.S. them. the tearing have think They use, going [indiscernible]. look are C is office mall And to the lot find like scramble full, the tenants these to and away and are malls going The pricing them down.
meaningful hope their Board is I supportive where the Solutions, and going and you seats thank it your is Everyone team earnings the started we growth dug in. creative. our Starwood And to So contributor support. forward. in for has becomes We a
take we'll guess. any that, I With questions,
