KKR Real Estate Finance Trust (KREF) 4 Feb 252024 Q4 Earnings call transcript

Company Profile

Participants

Jack Switala	executive
Matthew Salem	executive
W. Mattson	executive
William Catherwood	analyst
Donald Fandetti	analyst
Stephen Laws	analyst
Steven Delaney	analyst
Richard Shane	analyst
Jason Sabshon	analyst

Call transcript

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Operator

Good morning, and welcome to the KKR Real Estate Finance Trust Inc. Fourth Quarter 2024 Financial Results Conference Call. [Operator Instructions] Please note this event is being recorded. And I would now like to turn the conference over to Jack Switala of Investor Relations. Please, go ahead.

Jack Switala

Great. to the Real fourth welcome earnings Finance and for call quarter operator, the Estate KKR Trust Thanks, of XXXX.

supplementary mentioned, to the to call financial the future on call, statements, CEO, to remind operator statements. I'm these in certain and our and cautionary both non-GAAP contain the this and that GAAP of portion Decious. I'd to Switala. available release Mattson; earnings not events are our forward-looking are presentation, Jack which As the refer for like Please Kendra This COO, factors joined Patrick on the of our which Salem; we in call related guarantee measures certain performance. Matt do our which our everyone figures on will most to CFO, Relations or XX-K by reconciled Investor our recently President website. is This morning, will refer also filed

our will the Before call turn through I Matt, over I go results. to

For negative or $X.XX XXXX, the quarter-over-quarter. Distributable quarter $XX.X million December Book relatively as value per which of share. XX, or share. is was we net of income this share, fourth million flat reported is per $X.XX $XX.X $XX.XX GAAP per loss quarter XXXX, negative of

which $X.XX a now Matt. per call XX% have I'd We yesterday's share yields price. With the of to over that, dividend, closing as like turn to

Matthew Salem

and everyone, morning, for joining you Good thank Jack. you, Thank today.

devastating wildfires Before we California. the first in acknowledge we begin, to wanted

with all are thoughts has impacted, the to Our that thanks been responders. our and everyone first heartfelt

XXXX thought would our our achievements. into I Before I results, going discuss

markets. globally. approximately across all to KKR manages been have KKR's leverage ability XXX capital real information. professionals, wanted underwriting, asset utilize approximately estate and to we of I First, KREF's sourcing, and resources resources to highlight $XX management, our With billion assets able significant

transitional insurance, estate spectrum both across Europe our at bank, and the within States and active Just of across loans through invest capital. the pools are KKR, in risk-reward and United we credit securities, real and we

servicing, REO. has expertise asset team loans and an $XX a CMBS. underwriting, named on manages XX dedicated K-Star special servicer in management, individuals now over management with $XX platform of This billion billion Our is and of over special in asset additional portfolio

year Turning to of transition. a was This KREF.

environment during posture to has issues, proactively estate challenging we this approach led asset transparently for think been real management Our address to this outcomes. better and has and

X% the we list watch decreased Over fourth percentage year, of of as the to our from today. course have quarter of XX% XXXX

healthy we are begun and seeing for As market, the assets. The for and seen over is a the with on pipeline. to a beginning is our a our slowly quality number issuance RFPs. Investor highest patience in the in of billion SASB reentering XXXX assets, market XXXX shoots REO transactions of and have green sectors. office think will science return large to of and We high-quality these $X.X value. assets we've has to shareholder responded Tenants number office life CMBS office liquidity rebounding optimize sentiment

our equity As we could distributable an per earnings the generate $X.XX portfolio, reminder, repatriate on we quarter. believe we additional the share as a per in REO

With the structure for team, Capital our remains company. Markets liability differentiator assistance the KKR our of a

diversified non-mark-to-market. is financing have XX% We of and financing our

quarter. with of $XXX available We end at million the of liquidity levels the have strong fourth

values. loans to million. lend U.S. closed on dampen higher ample market treasury are further to real and call, commercial around last structure $XXX don't January, increasing maturities continue we may for have be are there acquisition we should but quarter-over-quarter. The activity, debt and we the Although markets capital XXXX, has In extend continued some robust watch X pipeline, optimize healthy, volumes have our we our any reset maturities. Since corporate opportunities a to transaction and capital to and until estate for approximately improve sentiment opportunity

of we ahead, migration, while dealt of in we the consistently are we think the further majority portfolio. anticipate have issues have that credit with fully we woods not stated the and out the Looking

into Before I want turn the call heading our XXXX. optimism to Patrick, to over I reiterate

We offensive us. With the forward confident it in our and that front in here. can we positioning Patrick have to feel that, look from continue to of take opportunity

W. Mattson

of Life Thanks, quarter a morning, the and year quarter of Dallas repayments well reported distributable Fourth on $X.XX Full prior in representing realized to secured loan. of loan properties watch loan. We everyone. office our DE earnings share, a as of X industrial XX% the San sale loans X% by now totaled million, year billion, negative $XXX Carlos ago. Science have fourth to of approximately repayments X portfolio, $X.X the Matt. of per portfolio the loans Good representing loss exceeded and as comprised losses multifamily list XX% includes realized portfolio. We compared $X.XX which part the

excess of additional course month, the Repayments current to originations loans portfolio the into our to While burn stress. With list $X newer not plan confident end occupancy off watch billion year, repayments vintage again a levels, surprising repayments the business and exceed liquidity, assets that this we low year. at outpace improve leverage portfolio, stabilizing in anticipate X-property renovated X looking closed would and And $XXX expected are beyond multifamily a to a this million over and leverage for peak current concessions. physical given with loans. we the of new target, are near total including of actively our a we of remain invest last recently are loans term. We well be to we

Turning to our watch allowance list. CECL and

equity. San was written CECL reserve of we portion loan As million X. Carlos a rating the a to in new of corresponding the Subsequently, subordinated reduced note senior restructured released. was we Life The upgraded risk off and loan the suggested Science in quarter, $XX sponsor previous the the call, loan was to and earnings fourth subordinated and modified

loan, on list, we our are continue $XXX better. On path to CECL total continuing sellout. portfolio a to rated and ownership and million down make or Multifamily of watch Our we progress the decreased reserve X -- Hollywood subsequent condo West risk is and to or XX% our

quarters. will progress the We the updated keep you in on coming

ratio debt-to-equity at this is we and X.Xx is on our total lower originating leverage leverage ratio As the end are of so zone, KREF's fourth actively the target point is loans. X.Xx. our of quarter,

confident to average fourth list the made should is and $XX in that of a The active. be continually and the attractive, our repayment This to origination almost market of allocation, plan our added year a Prior And repurchase for quarter, stock, us from over our excited of of quarter, evaluate look current share back stock XX million $XX.XX. We've repurchasing part we strong to opportunity. happy We weighted we great and months price to investment now million progress structure, perspective be we're a KREF. looked we've for of representing and $XXX bought this opportunities. watch on portfolio opportunity your ahead As positioning KREF again questions. and last about the to to remain forward liability the since stock lending you fourth inception morning. leverage market in joining company. In feel the we quality, take the XXXX. Thank total,

Operator

first the BTIG. with come Instructions] [Operator question Catherwood And from Tom will

William Catherwood

repayments. Maybe huge starting jump XQ. with in Obviously, a

begun Kind expect the obviously, think to year? how billion-plus as event? trended Do accelerated. repayments? expect that, kind steepening much that of early you And it to that 'XX Or that's XXXX? of $X evenly of should of kind the in do of likely you come has that throughout XQ that we've pace has be that How of yield with pace the that alluded of had earnings, slowed with curve? You just you the

W. Mattson

it's Tom, that Patrick. I'll take question.

you're pretty right, did quarter. meaningful a fourth So we in the have acceleration

pretty are loans our chunky. know, you As

we up see get more and and that rates meaningful So a a the in there impact repayments few don't driver drive that any repayments. when these at we time our of numbers. their A wasn't about counterparties. Obviously, a back it's can one refinance business quarter, a and the for sort main saw have that of in the optimizing for repayments. plans, I loans reached lot was as

see material there. I impact a So don't

quarter-by-quarter. we the really I sort had or to one this sort over probably year. year, lean difficult to was $X in of this of repayments If another, forecast. came terms quarter certainly forecasted forecast ended, repay early. back middle to What fourth the that's sort had in think but In it's acceleration we billion obviously again, say of I'd that We and some of it's XXXX of saw an difficult to way

William Catherwood

Patrick, make the you I repayments remarks? want say sure in Did And to just I you you exceed heard expect prepared near your term to right. in originations

W. Mattson

the the fact from stems at target we're leverage end that really here. of that our low And right. That's

some midrange get leverage the to ahead there's So redeploy back our we these get us capital, as the for of an to ratio. opportunity we of of but also repayments, think into start

that strong pretty January that So we There the out no in start a were came repayments gates, had of to with. month.

first the that we're quarter, I the was So seeing discussing. trend in already

William Catherwood

talk early And targeting that the loans talk scope times? to the can about of kind of I loan Tennessee on how of as then XXXX in in obviously, mean, and you maybe color hospitality looking along we pre-pandemic locations. a forward, about kind appreciate that classes pipeline the bit various and the your asset you as multifamily the those or lines, you're compare far pipeline the might But can --

Matthew Salem

it's I can that in on one. Tom, jump Matt. Yes,

estate to target we're targeting. first and institutional same to of largely high-quality is what groups. real think sponsorship the major and food the I really takeaway terms going in We're continue

So always industrial, to this a we've multifamily, piece but little on That's we'll student the of portfolio. housing. smaller important hotel what we been did deal a of quarter. an focus part continue Obviously, bit done,

say a what's we've lending the years, to would few just In in a Europe, last over Europe -- of #X, different, terms we'd built we've couple things. actively us, been I there. hope and of business for

little in illustration then more little of stabilized. before to the I plan diversification but similar we'd where that get rate lease I perspective, perspective. a to newly a tend from were back. better a lending more multifamily plan say, a time. a recent portfolio. And things that. the and deal off our that business that we is add of the just still revenues up. and providing Again, lending would that that of little but on doing kind increase lot asset still dramatic a grow from some And bit, into bit of it's just portfolio types construction is occupancy So more providing we bridge not function takeout burn in like this And of and like geographic is But with get assets think January and business to really sponsor time good maybe of kind a years a did we rate the the few the this to like that, built most property mostly we same diversity environment a concessions were is, to and bit a be increase, sponsors, we kind the loan leased little do will deal we'll that secondly, over the bit But

So to -- we of thing business a there. have underlying just a then the I demand continues the type sector data to for plans only perspective, center is would add the changed. And financing property from lot continue see

And could I would be so new into that potentially a we area portfolio. think introduce that the

William Catherwood

kind sticking me, for you. one of last with And

usually For ones some would But off office, your positive you in low your the assets of albeit tones. very mentioned office and loans sheet? on in shifts sector, speak book about loan hush in your balance of now, base. how are REO recently the your of remarks Obviously, a sector the both kind in right thinking we the prepared you

Matthew Salem

Yes.

I there's think there segments would X I highlight. probably

come And be that On office and encouraging. science the own leasing still, time. what activity. early got assets to I it's sector, was But start think it, in would let's the think it's we're patient. had to we and did over be market. are that And we reason I life shoots we're real really clear. beginning we into not we really back without reason high-quality and title because to estate. see now there's sector some And early, in but see lease tenants the went on that the REO, But to the It's Again, those the that good it's that of beginning green we the have cost, we thought both to somewhere. the

just part the And office portfolio so of begin. And it's that nice that of kind is the see on loans. comment would second -- then X-rated I the to

are I more back. think a financing because there, markets sign much positive it's the

So these term point loans well And office to are a -- long remaining our tend They they're leased. long X-rated is -- reasonable. lease have our have terms. leverage

see to you back, can when come markets see start So as -- you liquidity in financing some -- positions. can the those

Minneapolis, I'd risk-weighted list still little that still watch -- office say on will we've keep that's we've the of bit not we're that a again, encouraging be it's And side, think loan it asset yet in a So got through have I the pretty let's a either. component. And But on of probably it. already. and working wait see, reserves and -- and modified finished big not we're that with and out

looking group So a little mix a depending at. bit you're on of which

Operator

Next with Fargo. question Wells will come from Fandetti Don

Donald Fandetti

Matt. Yes,

like So are cross in it some there currents business. your seems

office got little but You've might longer getting better, not a be for multifamily. great for bit so higher apartments,

reasonable that of you're X is about of more next this little but the to and Or X, very doing stable kind migration XX over think to a you too should bit a a As book environment, view reserve large eating months? case as that investors into from sort value, significant builds book? where base nothing of maybe

Matthew Salem

I'd mean the look to future. look into hard out I it's to out. say hard

we that we think make through to to these largely we the not through like we're come is we're think I try going -- done portfolio, yet. comments but what

know a the pretty a of couple exactly quarters means and that macro environment, well. And in don't look it's hard it's I may what volatile to just happen. rate what obviously, out because project complex economy as So

So hard. it's

we're stability. project going road. may book But handful more we're or else phase to few down much where I think see again, value like to quarters come what quarters of over hard entering the a a this

Donald Fandetti

feel still still monetize you real there? there's multifamily? cuts, on but they you Is looks Are it some value hearing still a there of like liquidity do estate sort multifamily maybe And What like if willing borrowers? the fewer. in now had are hang to And hope? what's in couple you your do can sense because rate take You've portfolio? your back, you from of in

Matthew Salem

Yes.

preferred change you which a With structure, is demand loans, tremendous for there's I'll of lot if senior is of things the would the compressed. I there's like bit say, equity, kind multifamily, that. forward of where start you in kind down a would a the do amount that math more. mezzanine, that imply liquidity little capital ended, have #X, the are the are But of across of curve, offsetting values And it. a there just it few spreads

but we're some increase. come the or in of going little further a to road, be of rate means down in that time good we're impacts yet, by markets pipeline closer cost the moment interest accompanied has finally, bit road, offset there supply closer to And So rate to capital undersupplied growth market. time. of latest not like #X, are where, that the this which as more And in bad, it just these feels We're increase it. to it relates the higher over to rents again. degree -- we're the -- that projections then been has a your

growth assumptions investors or rent their put behind assumptions perhaps forward. bit So going weight going are more a to rent little

puts So would I say. there's takes, kind and of some

longer. My interest within clearly, to to and that have a rate little guess the that borrowers lend our have don't to really wait are bit time. think our lot much. sensitivity they'll our impact watch to, I honestly sponsorship we going structures, they're of environment. couple rate for there that. a buy still I bit down portfolio to is is think relates get I We've don't continue a every try do overall our it the really loans play don't And -- of of rate those capital I paid portfolio, us to There As to it this then And a a a lot elongated that really portfolio. most lower they'll forward of think guess us think multifamily we more that equity is is in my got and quality to sponsor little Not think portfolio, like going part, our rate loans. de-lever the and list move don't some the cushion got I sensitive. -- were liquidity and to there's and to has

think that sponsors, values the delinquencies much to couple of last multifamily. but start where smaller a bit -- get So into don't could in over I as quarters see more that's you think and little changed I you have

Operator

from question with And will James. next Raymond come our Laws Stephen

Stephen Laws

can Matt, couple of you Minneapolis that this on think wanted you looks I X-rated, first in expect the resolution? of a Hollywood provide it that think the something half made something of Do on back year. half -- expect as -- the office. to in color you date How asset, that circle San kind guys you the office Carlos sometime on do path the you But provided this resolution Minneapolis Kind multi comments any do that's some do know Do on deal. real there? West anticipate into you the you how maturity color the portfolio? you like -- of about I moves more the along you of year? aligned estate moving first

Matthew Salem

path a Yes. don't We determined have yet.

So it different of ways. a could go couple

think I tenants. few leased. we've have little continues got more over like bit the well It well as an because It's occupancy that to years. some hasn't time -- asset some a be from lost tenants, pretty we've -- on last similar we it

competes well the competes a asset market but is So and relatively in really -- in it's flowing tenants. -- And cash for it's competes that leased market, well difficult the well. fine, it a Minneapolis well market

more some probably flow, push given can and again path potentially to what and forward could cash sure not we see just more I'm there's just time. if we buy So that try is, but the the exactly options there

Stephen Laws

year-to-date, that's period. of I view kind especially stock repurchase I you sell-off capital, assume originations guess, current additional do forward? a quiet of given in But repurchases about versus the and market, you As do use think you think how how the going activity new originations about

Matthew Salem

I on very for that there loans. as reasons, of portfolio make for our it's when And we we've we'll lot consistent to been think sure a think Well, remarks buyers to the make capital needs turned evaluate obviously exposure, I continue in my job But duration thought Patrick a and is and making nice business did our on to to, I it new and important here. was a diversification, of stock invest to vintage well. back opportunity loans mind think And we're highlighting that of that be balance undervalued. us

So don't like is kind or the months, we've I what of it's past. as taken us the over as other. in a approach about balanced think -- the saw you like to of it last I one few But the do think course

Stephen Laws

And Patrick, one for CECL. you on

about XX we on originations few versus the this right that environment? new in do years that mean, rates, back I is standards increasingly this normalized As bps? new the cap we new of do to move originated underwriting think year? return bps, you portfolio ago, is on a current how originations think how think coming environment, current about a you the the current reserves level about as it Like XXX level originate

W. Mattson

today than loans. It's a because CECL question, the for just like short a newly loan I'd margin, a on go lower of for the we're Steve. many And originated X-rated bit up have a driven as it's model Certainly, X-year to CECL loan. originating on loans new a book the loans, the duration model these good expect

that's go continue of do question CECL. of So new that we're that CECL I something there's what's course be do loans. that greater to going your would a we I year, we're minimum And evaluating expect we'd is think margin movement, something Certainly, the absent that as slightly marginally, part up. be work that's that other think the I should expected. would making think I any of that expect this But And we around. over to sort

Stephen Laws

of not portfolio? the to that's clarify, growth by you But new are basis originations? that's necessarily right, Or referring the largely absolute and of the because an points and number, to some driven portfolio --

W. Mattson

that percentage nominal at CECL just A go in we've growth and against little Xs at the where expect resolve I think and aside a about because leverage I opportunity level. those, capital if the the we the here, Xs, clearly, of then we there's bit a from percentage got putting assets down. not about a think as a in I And margin, both. percentage growth, But some to One, but think resolutions, X-rated only we're where of CECL come would to our up terms. of dollars, and would as expect portfolio

Operator

from will Steve Citizens with Next question come Delaney JMP.

Steven Delaney

we frankly, It's the friendly to just buyback first, not shareholder externally always companies. seen want among that it's is very and applaud Look, something, activity. the managed

or was to Your price around XX% $XX.XX about average to range. $XX now $XX.XX. down We're

continue at mean, And volume you and correct? should I that attractive assume very you assume leverage. of being that so we Is to buybacks opportunity. regardless I still as that view the the a look

Matthew Salem

approach. I done Steve, like thanks and down we buybacks we've I question. really balanced think I for earlier, And said the loans. a think both like Yes, new evaluating It's in Matt. the like we're go past,

Steven Delaney

'XX. And portfolio, end It's to activity a credit early billion, about in at the $X.X $X.X been little like or last at has the that portfolio a -- looking high billion slow just point, year issue. was X. the over Matt, curious, more The been obviously, the at

have $X.X for you billion or number you the the Do year-end where mind could got at 'XX. round year? portfolio of You've of in think next a grow equity over a range sort

W. Mattson

Steve, I'm to take it's happy Patrick. that.

Steven Delaney

Thank you.

W. Mattson

Welcome.

to billion leverage this is the resolution $X.X So and think we assets some portfolio portfolio, on the changes about number. little target the we range. the of of range, kind that But yes, that current bit of as because just think is REO of $X.X number our about in a that billion absent think

Operator

Rick with JPMorgan. question from come will Next Shane

Richard Shane

has X covered guess I But lot a here. I have really been Look, questions.

sentiment and ability a price? is the about is curious, on little for market comment transacting to in of seen clear Or First that of market, of I puts is in sort we cycle? million, are, and $XX week? at concerned at $XX confidence of and was about, Or function is, the we're lot we implicitly end miserable a million? a downward it's a pressure am made this it's $XXX rates. to hello, the worried we're the it sellers next on to buyers movement the at hello, people out out it, When million developing about look spent $XX the less greater what market going now function where bit is less and, be being valuations. at we've yes, it trade you million of trading Like are worth

Matthew Salem

Rick, it's Matt. Thanks for the question.

answer what it and this for me comes Let way, hopefully, you're through. looking

few a flowing it's like, function cash of sellers couple are because assets and think they last around And I cost or well lot who I years, of fundamentally think of they're been a of a they're capital. issue a setting aside, office these the are leased, have over function the strong. valuation years a it's of

really just to and around And have larger it's sellers the it's so where been haven't sellers there -- may capital. the around been been really that in liquidity been. repatriate have of have been sales most sell willing not market. many -- to they That's And the

I next enter to certainty where you values have start we as -- Now locally within are. there's more phase, with this think

some little then keep want the do and So forward and definitely within existing has do a burn offer compressed. to playing these more continue Let sector in a dynamic. increase pipelines environment? growth they get portfolio, a little it's of rent cost larger buying bid the multifamily of let their like, and just time trying just question supply kind into it off, build to to get there's a of of the into lower capital And okay, bit bit -- owners,

are think is what And So in think 'XX because really happened overlay financed the X-year these those were all that lot short then again loans. of capital about like structures a the I you 'XX, with happening. acquisitions that's is becoming and

people just bit just running a acute more little have like bit a and think, time they on decision, I to make. short little that are So there's

we've X described, quarter-over-quarter seen And it's or setting like quarters, what So the and build, volumes transaction that's of volumes see needing last I maturing structures capital increase. how continue reality a like just people X for I function liquidity. getting in, I it. And to think

will volumes think little more be this in change deleveraging of continuation bit very So year. a huge the transaction this I for a personally to think be going industry. that. slow I of it there's in We're process don't just a

Richard Shane

the it described time to and possibility loan? You've as it the explanation just that longer. leased the giving a align it's Minneapolis flows thank giving second appreciate all, little little amorphous the for you cash but described bit and to a for actually alluded office I little to improves? question, swinging you ask bit Is just I'm Matt, well Is an that. bit the of extending first know of going and a said of pitch. -- the I one I let that everybody if what better thank at question. follow-up question, you, more environment then rate

Matthew Salem

as because would rather liquidity. category to of just I last the price years bit office out. of been of these that Well, liquidity nobody where there wanted other little separate would couple People put throughout sectors there's all the a was really for sell hold at a

was, office, little with think mind, in X very to like I my there liquidity.

liquidity Now you're back some starting market. come of see to into the that

but that's now of So dynamic like office liquid improve could and don't of and a best. stuff those market years. don't want not it's going of help a over -- with course, some there different And in owning the really the quality you're highest like little where gun. not bit that. the start, starting that's just to was that's valuation the asset just couple rate to assets, in I overstate I -- I'm the last office the of the class it's level more where buyers think first, but help it, where interest could only market I like think

Richard Shane

times to last I a that times other space. of loans make never the take high-level when would guys that they that. is go And are X of are last the bad, pretty years. then X X months. And make question the tend this, pendulum had And years have When we X-year we view or one -- good, that swing years. extensions top-down X-year XX loans X-year I in or or these observations on months X XX last or X-year saw you years is And the the X wildly terms they

a something fourth realize a just the that expect other is any quarter, swinging that you indication that one -- it's You Is talked everything until about there direction? in I in loan newer the idiosyncratic. things the was loans and XXXX. some are super back repayment of that little didn't bit

Matthew Salem

the of terms portfolioâ€¦ In

Richard Shane

we -- from X lot faster anything execute out stuff, went anything X over we're for or seeing years? been a Is to last the starting there than X we've X there years. see Going years to that

Matthew Salem

Yes.

I think reset I now you. And making point. loans got than new basis, in debt -- we're refinance has liquidity good today with strong. think pretty loans more I been, think I which there's agree mean making is I sponsors earlier. now our there And your to We've some that new of the are the markets I hear think terms. allowing the we're -- I

don't capital. And and are if are of their business They our X only to have years think I good of then years. years likely a is had it are to like they've the is largely on -- today where they want a repatriate want getting function today before going then plan. sponsors a had implement it's I of -- be buys to part few we a just refinance, like people they think couple probably those probably as shorter all end

always the they refinance. So thinking they and treadmill cash around point that can to they've more been can flows exposure duration loans executed it And your portfolio just or they now either go -- duration the sell that on create. have can short on we've about on and the

our that's on something it's well. So mind as

Operator

Our will KBW. Sabshon Instructions] [Operator from next come question Jason with

Jason Sabshon

please probably Could you give value pushback of science and assets? ultimately on an hear. deals life and outlook that we those in for the leasing area update #X the KREF's That's

is the helpful. that migration So addressing portfolio you to credit And where see previously? that that be the would potential in alluded could you

Matthew Salem

that some cover to try without much I'll into detail. Yes, too of going

that. on foreclosed piece lot is loans. really on science quarter, modification, modified. progress the there then construction exposure asset. dealt that First of were of which Obviously, an big We've We -- with hopefully we've remaining of last all, made our we And life a on had it. some

And really lot very assets green related types markets they're on commented market, tenants in So it our of I exposure going some that our think, that I and and without those are about the there largely we shoots, in market. exposures. these type looking just seeing of the XXX%, of with by of have where, And really assets coming space the loan of -- not they're when trophy-like sponsors, quality. I cases, a the the is don't but these best back in terms into coming are back for well-located to stop the what are think excited high-quality, Why and in type is tenants into loan? we

Jason Sabshon

it or supply, Is multifamily be And hear the something there to assets, are? else? helpful rent on watch it about basis, list the would what issues

Matthew Salem

Yes.

on rental depends are certainly of bit little little levels. but it more just -- occupancies, bit that impact it's where them the markets think asset. A I seen a supply-driven you've couple

it. -- of some it's a very say West That a West was Hollywood acquisition market -- the of the a just peak our different Multifamily that's or financing. So I'd different deal. is

more more we're down a continuing end perspective, a for of condo. sale multifamily the why it which of is condo moving the issue at value was from of value path a there of because really there a built out really the So -- day

at. depending we're which mix of on So a looking a little asset bit

Operator

This for question-and-answer conference Switala back like turn concludes remarks. the to to would any Jack our session. over closing I

Jack Switala

and Thanks, great. or have thanks, the Take any if questions. team everyone, here to me out today. to free joining care. reach Please you feel for Well, operator,

Operator

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

may You disconnect. now

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