ACRE - Earnings call transcript Q1 2021 | Ares Commercial Real Estate Corporation

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Operator

Good day and welcome to the Ares Commercial Real Estate Company’s First Quarter 2021 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to John Stilmar of Investor Relations. Please go ahead.

John Stilmar

Good afternoon, everybody and thank you for joining us on today’s conference call. by Carl Bryan Public Drake, Relations. today our Tae-Sik Company joined and CFO; our am our Donohoe; CEO, Yoon, Investor I Head of

addition our posted an XX-Q presentation under and morning In Resources the www.arescre.com. earnings press section Investor filed of with have were at this the we SEC, the our to website that release

statements, differ Estate documents these Many of expressions. and can expectations uncertainties. and call everyone Real of the course will, be during believes, the conditions its subject Commercial of of I Before expressed are by Ares and performance, and and forward-looking in condition should, are comments these update webcast obligation such identified that uncertainties. begin, management’s statements forward-looking intends, I want made These words SEC filings. contain judgment. a the as risks company’s to results accompanying this such are listed and statements as to The risks including actual to from those conference future These number these factors, statements. result, forward-looking assumes in forward-looking no of on market remind expects, such statements use based involve of number Corporation similar of statements may could and and current materially a or and a not guarantees management’s forward-looking results anticipates,

like With measures not accounting like to a accepted measures turn that, certain not be it substitute as used we with by to for of comparable use will measures in non-GAAP call, in accordance performance, as companies. principles. During refer considered isolation only operating should These measures. conference prepared these measures financial Bryan. measures over to this these I’d other be may and titled or to We generally

Bryan Donohoe

XX% another of the year-over-year $X.XX quarter of we with per everybody. up Thanks strong morning, regular XXXX, first excess our and in announced good of and for dividends. share afternoon combined quarter and This well distributable earnings supplemental

performance, credit of was we by activity, costs our We reduce strong the are driven from healthy LIBOR portfolio level with benefits to taken floors. the our of financing our pleased our have which and high-quality new actions investment quality,

our narrowing as continue enhancing to finding are to benefit stable active an a yet attractive and returning real competitive and estate and With improving market, already is real their a portfolio or reliable criteria economy Our strong some we an underwriting not platform estate position competitive from capital market landscape. market, which our participants legacy provider. the more

result, primary of loans or roughly As of terms. and to factors continue in new addition levels a we types see with geographies. areas opportunities in pre-pandemic pipeline an to attractive led have with than improved friendly attractive more are our investment attachment These points with spreads property in to that more focus, across all-in lender greater line diverse

We estate continue and to office markets fundamentals. to select primarily and demographics multifamily, self-storage industrial, sponsors, strong with secured loans in favorable by target properties real high-quality

in protections short of quarter playbook the senior $XXX Against backdrop, closed loans in business this Our property XXXX. commitments term, multiple new we to first covenant in strong of support consistent primarily originate across remains value-creating types with plans. million

closed opportunities, the additional us first reflection in throughout we increased provided In which with fourth a future to financing. capital quarter. non-recourse and conviction the our efficient As our investment match-funded we our of financing CLO, expanded access January,

the raise we of common to issued enabled securitization $XXX Warehouse. we Warehouse $XXX to premium cost, X capital shares balance second discussed, reduced a at see than Then non-recourse the As more purchase between set, opportunity future to from Ares have opportunity and in the we loans in and invest our sheet million quarter. of in $XXX debt new million two-thirds strength growth previously our our value more of million to loans slight enhanced the already this our over into Ares the closed funding the than of us million book to capital funding unfolding. equity Underscoring February,

portfolio, our portfolio well the invested office, senior collateralized XX% properties. loans of approximately with in two-thirds and to by Turning is constructed multifamily, and self-storage industrial our loans

for We loans an of quarter, strength of the continue backdrop has loan our made weighted average and to service retail X.X centers. internal of their X.X XXX% XXXX. end risk economy supported rating at year be underweight contractual hotels portfolio. versus improved our the The and stand-alone our debt improving further payments modestly to first

there on during non-accrual no Additionally, status new quarter. the were loans

COVID-XX resulted all by the remain the completely challenges pandemic benefits will housing our a our behind recovery with consistent the Along optimistic the The in about as overall not second property approach, these our our outcome this economic in are underwriting, for the was March conservative future resolved that brought on collateralized XX, a of carrying successful asset here it of underscores return and of This the on benefits we capabilities. and While our the strength lines, loan above that active uncertainty we value. have portfolio. the upfront resulting senior investment portfolio. our quarter, us, non-accrual student management

a which we to dividend supplemental to $X.XX that the want of plus call turn share I $X.XX Before over quarter. is per point share, our with Tae-Sik, declared dividend, per quarter out I consistent second did last

over full on the will dividends or For of with to supplemental inclusive healthy and that we quarter our now dividend. year position. earnings, to With continue fully $X.XX exceed first per details results I believe Tae-Sik the financial more to the our quarter that, we cover distributable turn our call provide XXXX, will

Tae-Sik Yoon

income share everyone. of of good per today, we afternoon $X.XX Great. or per net earnings $XX.X or Bryan Thank GAAP reported Earlier million $XX.X you, common distributable and common share. million $X.XX and

value share. and of by earnings per per as share. Bryan common book by slightly quarterly covered per per our that Supported improving well increased $X.XX the to $X.XX strong equity value regular book supplemental for third more $X.XX share common of per earnings earlier, quarter quarter This than mentioned share $XX.XX. consecutive Our our distributable our fully the our million is dividend share $X our accretive as dividend offering a

also believe the rate against of XX earnings end next floors. portfolio during significant interest points. weighted of The rate to Our the approximately rising a our which Furthermore, of protection interest provide XXXX from favorably basis notional was first LIBOR rates continued X-month loan approximately $X.X X-month and executed LIBOR the which quarter, of quarter at to billion average first on we swaps the the LIBOR benefit X.XX%, caps, compares over rate years. few we

benefited reserve. CECL million reduction of in was $X.X XX% our our macroeconomic decline by earnings reserve GAAP quarter driven from forecast. first also primarily a improved This Our CECL

over few quarters, as March the reserve balance XX, While we $XX have of our million. XXXX, remained at reduced at balance levels past CECL pre-pandemic about this Xx

highlight to further have balance we made enhancements the months. liability during Now sheet of let the of that side me the our some past XX

the to we you capital however, pandemic position. further months last good Despite past balance strengthen year, As very sheet. even in success, we harder And that have overall levels, vehicles XX structure. the into a know, pushed and tested certainly, were our liquidity our heading our financing our

the the of quarter X.Xx excluding quarter ratio, as reserve, X.Xx as versus first lower XXXX CECL of first debt-to-equity of our is the First, significantly at XXXX.

extension successful our we CLO we termed-out the the mix execution non-recourse of million our doubled of period towards non-recourse period recent the XX% the funding and than Second, in of to with our X March increased fourth last year. And the CLO, as first more third same and shift offering common our reinvestment sources versus share quarter finally, as of by XXXX. our base to continue than our XXXX XX% percent of liabilities more of XX% as capital through

market our is balance conditions, position stronger than of side the capital levels. liability sheet was in it challenging despite a at pre-pandemic today So

closing that, Bryan with back turn let to some call So remarks. over the me for

Bryan Donohoe

in opportunities are great. attractive good market equity, off in Thanks, summary, we us. of invest fully strong the quarterly see including improving sources positioned financing, a to well and Tae-Sik. very portfolio. credit That’s the in XXXX, with of more With we we to earnings, to quality healthy incremental start front are In

of of quarters with expect come expense that future resulting the the and We deployment benefit increased diversification capital. portfolio efficiencies will this the greater from

prudently are capital available market Importantly, actively investing our opportunity. against this attractive and we

distributable appreciate the will the greatly we result, track meet that your on investors that, support for questions. We ask a As open deliver or I time to earnings of and operator With exceed remain to for line year. our dividends the paid today. the

Operator

go from Hayes Tim And BTIG. Please question with [Operator the ahead. comes Instructions] first

Tim Hayes

good Hey, quarter. on nice a Congrats morning guys.

CLO pre-pandemic going relative forward reinvestment helps on to to fourth direction on levels. got bit how on and curious about here, But comments levels. look that I extended great know how have wide relative at curious I or question loans, your period just versus on Bryan, the pre-pandemic are just, are the the returns that new one. can going ROEs circling new levered levels? all-in look the First funding based they and all-in maybe where execution costs it you are But appreciate maybe a on coupons little back loans, spreads than you your just the third for be pre-pandemic spreads to

Bryan Donohoe

I Yes, asset in I’d good is across it’s a think the say there is board. question. What differentiation classes certainly

see keeping ROEs in with pre-pandemic think we levels. I

multifamily there. the space certainly tightening However, and there’s been industry compression in and some

an on together, basis. into us, that account comes far, been asset-by-asset that very So with to available we’ve how we’ll again levels. the pre-pandemic have pleased Thus leverage construction satisfactory all-in yields the are ROEs available to portfolio been the attachment points lower take with

Tim Hayes

see. the it. like expected. if new it well. Got quarter just believe you was also that expect liquidity, know time? down liquidity feel or how been to $XX as quite come couple. a update about your versus repayment which of liquidity you a curious the you this great today you well, as But I have But of bit I then just available additional can in And provided some think X, originating you loan busy don’t the and as second position maybe what is a helpful. current has guys on there support maybe you your loans That’s And liquidity May pipeline million that’s at sounds

Bryan Donohoe

Absolutely.

I Tae-Sik think into more let I’ll get detail.

take standpoint. just it a it you snapshot given I to in dynamic a Tae-Sik, is how why away? from difficult is portfolio take origination time moment the don’t financing and But think

Tae-Sik Yoon

Sure. announced more liquidity capital way great moving obviously, very define yesterday, that dynamically time, question. always the Tim, we significantly versus specific are position. mean, least as our at I liquidity at end, million. mentioned, we’re we amount the million and But quarter of over these smaller in that’s Bryan $XXX moments as a we the had $XX

So we us proceeds $XX very available million of that we about felt it expecting to are note be was important shortly. financing to to

FLX our particularly moving into loans vehicles, We’re vehicle, noted some around which extended the you we period. Securitization reinvestment financing various that

us gives flexibility there. loans. new tremendous in originating basically, have But that So active we been very

as of continue offering, to the we which deployed, sheet XX, plus line, of Warehouse closed our liquidity then on loans million significant the particularly certainly, of And $XX as end. common the have we significant have quarter we that hard with closed capital million. that million very the will $XX initially of balance the equity against that that have have, loans has bring we we the ACRE’s of weeks work Ares through been So we the next number be mentioned, a a March to couple had since invested will portion over available that the to $XXX raised we in portion including a and

Tim Hayes

or that loans Okay. pipeline. Do I think $XX so you million – was available in believe I to But million, going plus you of able you loans? sources be capital million to hopefully guess of the given those about believe $XX the of take some are to do it $XXX on to million loan – close kind given versus the repayments absent or those liquidity your so coming or that will you other Tae-Sik, all with $XX need

Tae-Sik Yoon

No.

are that the million, with of the $XX we bring use closed million the Ares to respect to $XX In fact, approximately plus would I half currently on will that Warehouse line. in loans say,

together million line, amount. So that the commitment we with Ares the amount million leverage outstanding in just we Ares Ares that line sufficient Warehouse obtain, bring balance have sheet. the $XX principal $XX ACRE’s showed Warehouse really, line And Warehouse will funded the in balance again, will the to plus on million $XXX we million. is the over of from liquidity But $XXX to

Tim Hayes

going Okay, it. to got am Thanks I my questions. That’s for hop into back helpful. taking queue.

Bryan Donohoe

Absolutely. Thank you, Tim.

Operator

The next Doug from with go Suisse. question comes Harter ahead. Credit Please

Doug Harter

Thanks.

kind an non-accrual how update of loans could was give us I and on if So the wondering three they you are progressing?

Bryan Donohoe

did in think throughout not Well, And but continued first weekdays in lodging echoing even and regularity uptick we there. was out sold basis mention, at the is able levels of we student where trend housing of We previously. as we seeing on asset the above landscape where Doug. carrying what lower also properties than or that non-accrual to did foremost, pre-pandemic value. positive now necessarily were secure occupancy, the quarter a were Absolutely, lines post last one we I weekends, are resolve was the versus financing terms then quarter-end, our

So and next very through remaining quarter the work on we assets expect the we dialogue. – that continued progress as constructive with over two borrower

Doug Harter

that, sold, gets the I property released, was that that outcome? a favorable was it. on guess guess, the reserve Got I given against there

Bryan Donohoe

mechanics there? the Tae-Sik, do you through want to walk

Tae-Sik Yoon

Sure. Absolutely.

if because we that recall, the we balance. at have loan received principal status, down, think beginning actual But that of reducing we’ve I non-accrual not against been amortizing put So the the is effectively Doug, on the a basically pandemic, so-called interest I reserve. there

So mentioned, that Bryan that that, as loan. March of amount repaid that actually as lower the got XX than carrying we on we that was had value

got you interest will the see on down been gain carrying payments value quarter we non-accrual slight second will is had that we repaid our So that because we of because that loan disposition the the it a the to show than of more what amortizing of with respect standards. fact for since

lower carrying effectively amount. than reserve, not release value a it’s but So repayment the of was the

Doug Harter

loan? would that got amount you on the I the initial of kind guess repayment just I the compared of to how that guess principal is

Tae-Sik Yoon

value. were So you repaid because were transaction. of above want call as only to than, basically, incurred it the the we was net, slightly lower that that part outstanding carrying was importantly, But legal some the if amount the it, expenses of amount

Doug Harter

Alright. Thank you.

Bryan Donohoe

was mentioned on to too beginning end, from portfolio. call. very we to And the ROE overall is this the thing with I’d one that keeping But it add an from the a perspective, positive in return this – and taking still

Doug Harter

Bryan. Thanks sense. Makes Thanks, Tae-Sik.

Tae-Sik Yoon

Thank you, Doug.

Operator

Delaney Securities. from question Steve Please next with comes ahead. The JMP go

Steve Delaney

Hello everyone. springtime. Happy

if prepays. a Just little wondered could about talk bit you

XX-some each was think $XXX maybe First I the area $XXX light, somewhere of We percent about in repaying would about you the And million. near quarter million. guess normally year. put of pretty that portfolio

the for what seeing visibility there. the So Thank I second any comments – or what about be have you’re might color assume quarter us you full expectation you could what good some you. near-term? year? then a give And

Bryan Donohoe

I question. think a what we expect – and it’s good

Candidly, towards I that in don’t with think what to any of origination of get latter we in concert Tae-Sik, this us this pipeline of expect see to course But those back one is a return to to we understand to you that their half towards have lot half to that coming our that operations do expect equilibrium the you we’re in year. really in XX the they plan of normal front we loans front specifically sit with out of manage pleased get business mentioned another. a where repayments. to and and latter the spending in we’re time potential of normal year, I that. know out is if XX-month add anything obviously, to why, which with tenor in borrowers

Tae-Sik Yoon

I consistent very views. think No, with that’s Yes. our

see So that’s right. I exactly

year. each XX% basically you what to I about was think repaid our portfolio of third pre-pandemic saw

past to borrowers million is XX So that. to more seek starting that, their create financing the the certainly, we significantly call million and/or asset to And our realize more. Obviously, per more plans. to than in able for start seeing on was permanent open are business their that But $XXX to and is them we’re value less year. to be markets average, $XXX months achieve see starting what they the XX either to

So I think that’s right.

would what second a pre-pandemic forecasting half we to it, to if more is the think we’re really you of I that of level see want repayments. year start normal, call that

Steve Delaney

Got Got it. it.

reserve, in general on the million of the can helpful. reflecting Xx are specific And million just that $XX outlook? is talk That’s there? there macro $XX Or CECL reserves today, are In sort about pre-COVID. Okay, thanks. the and you that

Tae-Sik Yoon

general We caused year-end of change all quarter-to-quarter It’s want talk the change XXXX in in first terms profile quarter you our the of really have didn’t credit from outlook, Yes. really macro loans. meaningful any XXXX. what if to to

not change And so a some as outlook. change right, material the as but general economic

a is X I from third-party think finding to to that certainly ago, we pointed a economic positive much determine rely situation what we’re X more XX the months CECL forecast have ago, economic months reserve forecast ago. direction – our than months the that upon really they

the really or show outlook CECL primarily And was economic credit forward the portfolio to so the itself. in wanted going that to quarter loan as data the the metrics of change opposed to portfolio due we this metrics

Steve Delaney

Got it.

on book as obviously, of forward, would so… that a going value, book but you GAAP distributable no more I so plus to So EPS, impact assume, over time, recover

Tae-Sik Yoon

that’s right. I Yes. think

like that’s saw far Just what to first for quarters quarter, the And or XX, exactly we certainly, what the XX of see the we’ve two think continue in in so. last the seen we – days so quarter. that’s I

Steve Delaney

Great. Thank the you for comment.

Tae-Sik Yoon

Thank you, Steve.

Operator

The Instructions] Rahmani with comes question go KBW. from [Operator Please ahead. next Jade

Jade Rahmani

of M&A very Thank there at are opportunities point? management you Are that top mind any this for much.

Bryan Donohoe

as nothing business, quarter clearly we and months the hence quarters, a Jade, last few we the on in prior benefits see Obviously, the touched of specifically. ago. raise scaling

to have right certainly target eyes ears nothing opportunities, and there now. but a that specific have our on open is we So we

Jade Rahmani

Okay.

they be don’t REIT. peer guess, peers, as qualify a to a One used mortgage of they probably your I anymore, but

ground a stock Now value. a premium large they at REIT, is really are book trading their and lease to

neutral, you’re low, I’m but over cash ground probably upfront yields of grow sure cash leases, they they the aware, very In time. completely are because terms are flow, as

over years. see with happen I invitation X homes. the last the created It’s management SAFE. stock a lease to I is called REITs space Regis, So called launched a team. And best-performing of strategy the in the that Ares one the ground did which company know

So curious ACRE And of Estate or on Commercial that an in? I’m that Ares overall, capital just sector, if which what thoughts the Real is growing may participate in area sector? are that your

Bryan Donohoe

I interesting. is that they put technology in really have place think the

the investment by adjustments a think have team, I our continues that it opportunity make estate you you fund they duration and think and – great a place the the because alternative real mentioned team the a relative are in. duration very the And investing stability good it’s made CPI be space, folks the in invest. they credit I Regis assets and assets specifically invested fund of – that do hence, of those to in to alongside the attractive of very our value opportunity mentioned

today. I would we ACRE interesting but be to significant a for agree something that envision, pivot be think that it’s and investing not you an fairly that with place

Jade Rahmani

have participate do that iStar program Is which in ground think financing. ACRE construction something they loans takeout in? a And provides you lease alongside might

Bryan Donohoe

there I We us, tell our frequently of either for and potentially sit structure be or you, next to any be in be bit. think led certainly is deal could investment significant. another because one we who not ways and talk the them vehicles, want to Roth, that flow we one crossover may just about and pretty the the fit will of we the Jade, good may same mindful talk in could we of the bar investment from pretty bit a capital a David can conflicts. together. certainly good benefit high, and I Candidly, potential to work But

of TBD. think, benefits is together, same there not direct I way work certainly, or to on a whether So But the being platform. are there is

Jade Rahmani

the an lastly, market origination on might find just through think that’s Difficulty] entry afford there then if or you XXXX the the valuations [Technical is estate XXXX wanted middle real ACRE’s the in exchanges And you. out, focus, tax what exchanges. benefits come given I a that were up on either to Thank curtailment volumes underlying of asset investors? be impact

Bryan Donohoe

view. has that it will to it with some is impactful way ACRE. exchange be looked also investors it don’t induces to the a traditionally think some market, think while value, The negative potentially certainly at XXXX I it we’ve overpay. Candidly, I

that in though, So conservatively, – the it you’re and to XXXX order discount it we underwrite always money it’s affects ongoing of it’s paying at if more would ascribed tax of all. because investor than How more secure for found a definitionally, investor, think right? bit value I that minimal us, little benefit. kind And to market a

Jade Rahmani

Thank you for the questions.

Bryan Donohoe

Thank you.

Operator

Laws Stephen go ahead. with The Please next question comes James. from Raymond

Stephen Laws

originations? afternoon I It Coast. lot It’s in looks Hi, commentary. appreciate any not talk to of like on doing you covered. typical can But office months quarter, I changed segment And your kind think, of you’re versus A been originations about the have East good ago? you from the standards office half or that XX a has was staying the mix. type the Two you’re guys from how portfolio about morning. away underwriting what questions. good in type atypical, of the assets on new office Thanks.

Bryan Donohoe

fairly provincial quality be in most going Yes, today. markets. premier outdated ultimately opportunities, or so for and that going I think to great office the included, changed always not so to think I the the we’ve are been are look our we’re is a and to remains by business shunned question. that offices ourselves flight outlook probably locations see underwriting tenants and market of in participants, What’s tenants and models of to therefore capital by And

somewhat investments there. into I So as we certainly interesting there account some that make are contrarian we right. think are attributes, really to look And taking

presents been attachment attractive set. interesting to and reset of do properties in a opportunity the against to in you decline a then on loan so I things invest XX% office XX% XX%, long-term so core basis, to office in really that think that and and be core able overall markets these point, that think If point tenancy asset, locations think to in for always write an attachment that in a credit to able value that decline some we to access have tenants the about mass have asset strong transit with being

portfolio manage opportunities, invest office still said as will We industrial I will in with some still in we which be to world, have multifamily will and in a provincial the the high and and manner them. concentration present the we continue prior. But

Stephen Laws

think, on Great. CLO costs, that, just Bryan. I the appreciate certainly it thought lot I know guess, you X extended and It you on gives your I guys interesting. the going from is helps And standpoint, to I mention not the that color period, more reinvestment you financing runway in. a non-recourse term financing.

talk that So that play that other that? about to further? on the occur extending can how you of Is or familiar the something deals out? could that period with reinvest process here? not continue Kind with does extension I’m

Bryan Donohoe

to for of I’ll that And liability from walk previously. work you amount there through a side is quantitative the have lent have much great let borrowers the Sure. then counterparties, is the example in of But details. of with we We who about I’ll incumbent this is least things the also participant, that. lender partners can from Tae-Sik, – benefit start, prime always one to we from extension the set value I been standpoint? right? And talked opportunity to we’ve friction the think continue that past. and of I walk our maybe us was some a our to benefits of the into see that being the think of some Tae-Sik so

Tae-Sik Yoon

that’s an question. excellent Sure. Stephen,

strategy. a Warehouse when very there match-funded big financing enjoy doing non-mark-to-market, you And you the are financing, type nonrecourse, of is strong of leverage, that securitization, advantages. versus course, benefits note-on-note compare of or clearly One CLO

pays get when can that loan off quickly. of And within disadvantages One legal a paid right? associated of is itself that de-lever is done. static proceeds particularly reinvest That’s the disadvantage, CLO, it the that a securitization of CLO, the and then all you big doing big disadvantage a to is work of so-called all securitization the because the are placement work the of first with the don’t where second relatively costs down, big

biggest disadvantages really are two securitization. of the So those the

feel period. of think quite FLX very having second I disadvantages the by we’ve now in both to manage particular reinvestment we really fortunate able been of the that with those extension well

quarter So this I securitization second was believe, actually XXXX. of in, back done

we’ve so years. thing And X already had this for outstanding

So period, in it we we’ve extended initial And XXXX that XXXX. investment extended to years an had now X to X-year XXXX.

we So as it, we applicable be you find to able to It appropriate to continue and amortize if will will but replacement leverage. want have, won’t assets, effectively, to as long now, enjoy benefits we of full for continue call nearly the than fully initially we securitization much much, this will period be amortize setting the well up X-year of which as CLO. in static longer cost a as a over a period the down levered typical the pool

this, So securitization significant this a recall, FLX advantage. you’ll We notes. do with is were we think as able XXXX one was investment-grade of done to the because single purchaser all the of

the typical Ares, recall, fee significant extension. one we relationships to terms you we back that investor XXXX placement directly to securitization. single reinvestment that done period And that was not of also save to the things because big even have able we pay the been go of agent a to for to in had through at the placement is have we placement able so and that negotiate here back And were did as

think have as lowered So significantly securitization in extended we life typically both ways, useful of as of the securitization. well doing a cost I significantly the the

Stephen Laws

Thanks Tae-Sik. today. helpful the are comments. Appreciate Great. time Those

Tae-Sik Yoon

you, Thank Stephen.

Operator

The go Please Charlie with next Arestia question ahead. comes JPMorgan. from

Charlie Arestia

small questions few of me. items but Hi guys. taking Thanks for from covered a most them, We’ve today. just the

there. of self-storage the retail any Illinois in And actual I office on originations, component the see new the I’m are is property? and I’m that just the at curious property in curious the if Florida. Looking California components What there mixed-use.

Bryan Donohoe

want you Tae-Sik, to this? take

Tae-Sik Yoon

Sure.

have stand-alone mix But against when as we when enhance retail facility. do retail really not find retail that the users commercial I – office It’s component. you we centers. other believe mixed-use think lent situation have, – you do that a purposely a actually very it. not we and the have of component desirability that mixed-use that in can mentioned, retail does We of the

it. to component It’s really retail office mixture retail. a and have of does it So a

Charlie Arestia

asset item think Westchester like is what’s to else I I’m lastly, with got isn’t realize housekeeping for am reopening, rate sure forward capturing just Marriott? seems that some long-term make on color sure there it. wanted should happening a but I we I combined And Okay, revenues going be It the run broader – Again, I wondering And then there. basically, going the probably that’s how both you with really appreciate there? just going everything for the but quarter. guys. And seasonality to the this a about this dipped expenses the and

Bryan Donohoe

Yes.

think like right certainly. sounds the I track it on you’re

I issue first think that of an for the seasonality geography quarter is hotel. for

So Continue a in benefit competitive things the month. set. quarters, a good about prior January lower the specifically part of all the of we’ve closing from to was talked

So we to lines, more but if of the similar that very closures. also does it’s to at prior exist the look are trend in due the continuing harvest the demand you years, market to

to So trend investment. lines sheet, relatively we time small are best continue balance the monitor obviously, find positive. to the It exit remains and to of a part our

Charlie Arestia

much very for taking Thanks the questions.

Operator

any turn further As over this the our Donohoe conference questions, Bryan for session. back we question-and-answer concludes remarks. no closing have I’ll to now

Bryan Donohoe

on today. to We ACRE Thank again Thank you everyone time well. and quarterly to talking be you, continued of support for look appreciate you call. next and we thanks to their and forward your our earnings

Operator

presentation. now has you Thank conference for attending The concluded. today’s

now disconnect. may You

Ares Commercial Real Estate (ACRE) 5 May 212021 Q1 Earnings call transcript