(BRMK) 2022 Q3 法說會逐字稿

Greetings, and welcome to the Broadmark Realty Capital Third Quarter 2022 Earnings Call. (Operator Instructions) As a reminder, this conference call is being recorded.

您好，歡迎參加 Broadmark Realty Capital 2022 年第三季度財報電話會議。 （操作員說明）作為提醒，此電話會議正在錄音中。

It is now my pleasure to introduce your host, Nevin Boparai, General Counsel. Thank you, sir. Please go ahead.

現在我很高興向您介紹您的主持人，總法律顧問 Nevin Boparai。謝謝你，先生。請繼續。

Good afternoon. Thank you for joining us today for Broadmark Realty Capital's Third Quarter 2022 Earnings Conference Call. In addition to the press releases issued this afternoon, we've filed the supplemental package with additional detail on our results, which is available in the Investors section on our website at www.broadmark.com.

下午好。感謝您今天參加 Broadmark Realty Capital 的 2022 年第三季度收益電話會議。除了今天下午發布的新聞稿外，我們還提交了補充包，其中包含有關我們結果的更多詳細信息，可在我們網站 www.broadmark.com 的“投資者”部分找到。

As a reminder, remarks made on today's conference call may include forward-looking statements. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those discussed today. We do not undertake any obligation to update our forward-looking statements in light of new information or future events. For a more detailed discussion of the factors that may affect the company's results, please refer to our earnings release for this quarter and to our most recent SEC filing.

提醒一下，在今天的電話會議上發表的言論可能包括前瞻性陳述。前瞻性陳述受風險和不確定性的影響，可能導致實際結果與今天討論的結果大不相同。我們不承擔任何義務根據新信息或未來事件更新我們的前瞻性陳述。有關可能影響公司業績的因素的更詳細討論，請參閱我們本季度的收益發布和我們最近提交給美國證券交易委員會的文件。

During this call, we will also be discussing certain non-GAAP financial measures. More information about these non-GAAP financial measures and reconciliations to the most directly comparable GAAP financial measures are contained in our earnings release and SEC filings.

在這次電話會議中，我們還將討論某些非公認會計原則的財務措施。有關這些非 GAAP 財務指標以及與最直接可比的 GAAP 財務指標的對賬的更多信息，請參見我們的收益發布和 SEC 文件。

This afternoon's conference call is hosted by Broadmark's Interim Chief Executive Officer, Jeffrey Pyatt; Interim President, Kevin Luebbers; and Chief Financial Officer, David Schneider. Management will make some prepared comments, after which we will open up the call to your questions.

今天下午的電話會議由 Broadmark 的臨時首席執行官 Jeffrey Pyatt 主持；臨時總裁凱文·盧伯斯；和首席財務官大衛施耐德。管理層將做出一些準備好的評論，之後我們將打開電話詢問您的問題。

Now, I'll turn the call over to Jeff.

現在，我將把電話轉給 Jeff。

It's been a busy time here at Broadmark. This afternoon, we announced a change in leadership for the company. I have assumed the role of Interim CEO, and Kevin Luebbers, a director and Chair of the Audit Committee, has been named Interim President. The Board is in the process of launching a search for a new Chief Executive Officer, and Kevin and I will serve in our roles until that individual is hired. Also, Kevin and I will remain members of the Board, and I will continue to serve as its Chairman. These appointments follow a mutual agreement to separate between the Board and Brian Ward, who will leave his role as CEO and resign as a director of the company, effective immediately. We thank Brian for his contributions to Broadmark and we wish him all success in the future.

Broadmark 一直很忙。今天下午，我們宣布了公司領導層的變動。我已擔任臨時首席執行官一職，審計委員會的董事兼主席 Kevin Luebbers 已被任命為臨時總裁。董事會正在尋找新的首席執行官，凱文和我將擔任我們的職務，直到該人被聘用。此外，凱文和我將繼續擔任董事會成員，我將繼續擔任董事會主席。這些任命遵循董事會和布萊恩沃德之間的相互協議，後者將辭去首席執行官一職並辭去公司董事職務，立即生效。我們感謝 Brian 對 Broadmark 的貢獻，並祝愿他未來一切順利。

Additionally, I am pleased to share that Jonathan Hermes has been hired as our Chief Financial Officer, effective December 1, 2022. He is a highly capable financial leader, with technical accounting and capital markets experience. Jon is no stranger to Broadmark, as he worked closely with the company when we were going public. Jon will succeed David Schneider, who previously announced his intention to resign to accept an opportunity as a private -- at a private company. David will remain with Broadmark until year-end to ensure a seamless transition. Given this is his last call with us, David, on behalf of the Board of Directors, we thank you for your numerous contributions and help with the transition and we wish you all success in your next chapter.

此外，我很高興地與大家分享，喬納森·赫爾墨斯 (Jonathan Hermes) 已被聘為我們的首席財務官，自 2022 年 12 月 1 日起生效。他是一位非常有能力的財務領導者，擁有技術會計和資本市場經驗。 Jon 對 Broadmark 並不陌生，因為他在我們上市時與公司密切合作。喬恩將接替大衛施耐德，後者此前曾宣布打算辭職以接受私人公司的機會。 David 將留在 Broadmark 直到年底，以確保無縫過渡。鑑於這是他最後一次與我們通話，大衛，我們代表董事會感謝您為過渡所做的眾多貢獻和幫助，我們祝您在下一章中一切順利。

While we have experienced significant leadership change over the past year, the foundational principles of our business remain unchanged. We founded Broadmark over a decade ago in the wake of the global financial crisis. So we know a thing or 2 about navigating choppy waters. We built this business from the ground up and have been tested through multiple economic cycles. We have a long history of successfully deploying capital and we have originated over $4 billion in loans since inception. Through it all, we have lived up to our commitments to our borrowers and thrived as a trusted go-to provider of capital.

雖然我們在過去一年經歷了重大的領導層變動，但我們業務的基本原則保持不變。十多年前，在全球金融危機之後，我們創立了 Broadmark。因此，我們對在波濤洶湧的水域中航行有所了解。我們從頭開始建立這項業務，並經過多個經濟周期的考驗。我們在成功部署資本方面有著悠久的歷史，自成立以來我們已經發放了超過 40 億美元的貸款。通過這一切，我們兌現了對借款人的承諾，並成為值得信賴的首選資本提供者。

The keys to our success have been woven into our DNA from the beginning. We are disciplined underwriters, requiring significant equity from our borrowers. Our loans are generally short term in nature, allowing us to reprice our book with relative speed. Notably, we have always operated with little or no debt, significantly reducing risks associated with liquidity, refinancing, and interest rate exposure. As we look to the future, we remain confident in our cycle-tested strategy. We are diversified across the national footprint and have a deep and experienced team of ground-level real estate investment experts. As we manage our existing portfolio and the current economic and financial market turmoils subsides over time, we believe we will emerge in a strong position to take advantage of the opportunities that arise to resume growth and create value over the long term.

我們成功的關鍵從一開始就融入了我們的 DNA。我們是紀律嚴明的承銷商，要求借款人提供大量股權。我們的貸款通常是短期的，使我們能夠以相對速度重新定價我們的賬簿。值得注意的是，我們一直在很少或沒有債務的情況下運營，從而顯著降低了與流動性、再融資和利率風險相關的風險。展望未來，我們對我們經過循環測試的戰略充滿信心。我們在全國范圍內多元化，並擁有一支由基層房地產投資專家組成的深厚而經驗豐富的團隊。隨著我們管理現有的投資組合以及當前的經濟和金融市場動盪隨著時間的推移而消退，我們相信我們將處於有利地位，以利用出現的機會恢復增長並長期創造價值。

I'll now turn the call over to Kevin to share some additional perspective.

我現在將把電話轉給凱文，分享一些額外的觀點。

Thank you, Jeff. Good afternoon, everyone. I'd like to comment a bit more on the external environment and on one additional announcement we made today.

謝謝你，傑夫。大家下午好。我想就外部環境和我們今天發布的另一項公告發表更多評論。

2022 continues to bring unprecedented challenges to the global economy, real estate, and the financial markets. Persistently high inflation has forced the Federal Reserve to rapidly increase rates, greatly impacting asset values in the near term. 30-year residential mortgage rates have risen from roughly 3% 1 year ago to over 7% today, and commercial mortgage rates have followed a similar pattern. And while overall employment has continued to grow, real wages have declined and there are increasing signs of recession risks amid a backdrop of political uncertainty.

2022年繼續給全球經濟、房地產和金融市場帶來前所未有的挑戰。持續的高通脹迫使美聯儲迅速提高利率，在短期內極大地影響資產價值。 30 年期住宅抵押貸款利率從一年前的大約 3% 上升到今天的 7% 以上，商業抵押貸款利率也遵循類似的模式。儘管整體就業繼續增長，但實際工資卻下降了，在政治不確定的背景下，衰退風險的跡象越來越多。

With countervailing risks of inflation, along with the rising rates and recession fears, financial market volatility has hit levels not seen since the global financial crisis in 2008/2009. Virtually all equity and fixed income assets have been significantly impacted. Despite this environment, we believe that Broadmark is positioned ultimately to thrive as opportunities arise, as they always do from market dislocation and uncertainty, we believe over time, we will be able to capture more than our share as we move ahead.

隨著通脹的抵消風險，以及利率上升和對經濟衰退的擔憂，金融市場波動已達到自 2008/2009 年全球金融危機以來的最高水平。幾乎所有股票和固定收益資產都受到了重大影響。儘管存在這種環境，我們相信 Broadmark 最終將隨著機會的出現而蓬勃發展，正如市場混亂和不確定性總是如此，我們相信隨著時間的推移，我們將能夠在前進的過程中獲得超過我們的份額。

Beyond originating new business and ongoing critical priority that we're focused on is effectively addressing our non-performing loans. Capital is precious, and while we have confidence we will ultimately resolve those loans in a manner favorable to Broadmark, until they are resolved, it continues to create a drag on our growth and our earnings. To that point, the team will remain hyper-focused on this issue. David will provide additional detail, but we wanted to call out that this will continue to be one of our most important areas of focus.

除了發起新業務和我們關注的持續關鍵優先事項之外，我們還關注有效解決我們的不良貸款問題。資本是寶貴的，雖然我們有信心最終以有利於 Broadmark 的方式解決這些貸款，但在解決之前，它會繼續拖累我們的增長和收益。到那時，團隊將繼續高度關注這個問題。 David 將提供更多細節，但我們想指出，這將繼續是我們最重要的關注領域之一。

Let me now turn to our share repurchase program. Today, the Board approved a share repurchase program to purchase up to $75 million of common stock. We remain committed to continuing to source and fund new loan originations, but we recognize the value of our company and wanted an additional capital allocation lever on which to potentially act opportunistically in the future.

現在讓我談談我們的股票回購計劃。今天，董事會批准了一項股票回購計劃，以購買高達 7500 萬美元的普通股。我們仍然致力於繼續尋找和資助新的貸款發放，但我們認識到我們公司的價值，並希望有一個額外的資本分配槓桿，以便在未來採取機會主義行動。

I'll end by saying that the Board has taken decisive actions on behalf of shareholders and stakeholders to ensure the company is positioned with strong leadership and clear strategy to weather the current environment and create long-term value. With an experienced team in place and the lowest levered balance sheet in the industry, Broadmark is poised to build the business in a disciplined and thoughtful manner. I'd like to thank our team for their hard work and contributions and while this will take some time, we believe we are taking the right actions to move forward and achieve long-term success.

最後，我要說的是，董事會已代表股東和利益相關者採取了果斷行動，以確保公司具有強大的領導力和清晰的戰略，以應對當前環境並創造長期價值。憑藉經驗豐富的團隊和業內最低的資產負債表，Broadmark 已準備好以嚴謹和周到的方式建立業務。我要感謝我們團隊的辛勤工作和貢獻，雖然這需要一些時間，但我們相信我們正在採取正確的行動來向前邁進並取得長期成功。

And with that, I'll turn the call over to David.

有了這個，我會把電話轉給大衛。

Thanks, Kevin, and good afternoon everyone. Our operating results are detailed on Slide 7 of our earnings presentation. For the third quarter of 2022, we produced total revenue of $27.1 million and net income of $2.6 million. On a per share basis, this reflects GAAP net income of approximately $0.02 per diluted common share. The quarter-over-quarter change in GAAP net income reflects an increase to our CECL loan loss reserve of approximately $0.07 per diluted common share. This increase was primarily due to an increase in specific loan loss reserves of $9.6 million that I will discuss shortly. Adjusting for the impact of non-recurring costs and other non-cash items, our distributable earnings prior to realized loss on investments for the third quarter were $18 million or $0.14 per diluted common share. Interest income on our loans in the third quarter was $20.7 million, and fee income was $6.4 million.

謝謝，凱文，大家下午好。我們的經營業績在我們的收益報告的幻燈片 7 中有詳細說明。 2022 年第三季度，我們的總收入為 2710 萬美元，淨收入為 260 萬美元。按每股計算，這反映了 GAAP 淨收入約為每股攤薄普通股 0.02 美元。 GAAP 淨收入的季度環比變化反映了我們的 CECL 貸款損失準備金增加了每股攤薄普通股約 0.07 美元。這一增長主要是由於特定貸款損失準備金增加了 960 萬美元，我將在稍後討論。調整非經常性成本和其他非現金項目的影響後，我們在第三季度實現投資損失之前的可分配收益為 1800 萬美元或每股攤薄普通股 0.14 美元。第三季度我們的貸款利息收入為 2070 萬美元，手續費收入為 640 萬美元。

On the expense side, for the third quarter, we had cash compensation and employee benefits expense of $2.7 million, while G&A was $3 million. Our total cash compensation and G&A expense improved 3.4% from the second quarter of 2022, and with $18.3 million in expense year-to-date, we maintain our expectation of approximately $24 million in total cash compensation and G&A expenses for the full year 2022.

在費用方面，第三季度，我們的現金薪酬和員工福利費用為 270 萬美元，而 G&A 為 300 萬美元。與 2022 年第二季度相比，我們的總現金薪酬和 G&A 費用增長了 3.4%，今年迄今的費用為 1830 萬美元，我們維持對 2022 年全年現金薪酬和 G&A 費用總額約為 2400 萬美元的預期。

In the third quarter, we executed on 18 loan originations, with an average loan size of $7.8 million at an unlevered yield of 12.9%. As a reminder, our loans remain short term with a weighted average term of 14 months at origination for the third quarter. The short-term nature of our loans reduces our exposure to interest rate fluctuations. It also allows us to be nimble and pivot fairly quickly as the environment evolves.

第三季度，我們執行了 18 筆貸款發放，平均貸款規模為 780 萬美元，無槓桿收益率為 12.9%。提醒一下，我們的貸款仍然是短期的，第三季度的加權平均期限為 14 個月。我們貸款的短期性質降低了我們對利率波動的風險。它還使我們能夠隨著環境的發展變得靈活和快速地轉動。

Turning to portfolio management, as of September 30, we had contractual default rate of 19% of the total portfolio by value. During the third quarter, we foreclosed on 1 small loan and received payoffs on fixed loans in contractual default status, representing $18 million in total commitment. At the end of the quarter, we owned 11 foreclosed properties with $93.5 million in carrying value.

談到投資組合管理，截至 9 月 30 日，按價值計算，我們的合同違約率為總投資組合的 19%。在第三季度，我們取消了 1 筆小額貸款的贖回權，並收到了合同違約狀態的固定貸款的回報，總承諾金額為 1800 萬美元。在本季度末，我們擁有 11 處止贖房產，賬面價值為 9350 萬美元。

As I noted earlier, our CECL reserve was up in the third quarter. This was primarily due to a specific $9.1 million loan loss reserve associated with a loan collateralized by a hotel in Colorado, with the borrower in bankruptcy and have failed plan to flag the hotel, resulting in material deterioration in the appraised value. As a reminder, our portfolio is less than 5% hotels and weighted towards single and multifamily collateral with substantially lower LTVs, and we do not believe this troubled loan is representative of our broader portfolio. Outside of the specific reserve, we noted a 13% increase in our aggregate CECL general reserve based on consideration of current macroeconomic factors.

正如我之前提到的，我們的 CECL 儲備在第三季度有所增加。這主要是由於與科羅拉多州一家酒店抵押的貸款相關的特定 910 萬美元的貸款損失準備金，借款人處於破產狀態並且未能計劃標記該酒店，導致評估價值出現實質性惡化。提醒一下，我們的投資組合不到 5% 的酒店，並且偏重於 LTV 大幅降低的單戶和多戶抵押品，我們認為這筆問題貸款不能代表我們更廣泛的投資組合。在特定準備金之外，我們注意到基於當前宏觀經濟因素的考慮，我們的 CECL 一般準備金總額增加了 13%。

From an earnings perspective, as of September 30, we had approximately $115.4 million in principal outstanding on loans in non-accrual status and foreclosed properties, which resulted in a drag on earnings of approximately $0.05 per diluted common share for the third quarter of 2022. As Kevin mentioned, effectively addressing our non-performing loans remains a high priority, as we continue to work diligently to resolve these issues to achieve the best results for Broadmark and in a manner accretive to shareholders. Ultimately, we strive to generate strong cash flow and earnings growth. So, effectively executing on this strategy is essential, as we work to maximize performance.

從收益的角度來看，截至 9 月 30 日，我們有大約 1.154 億美元的非應計狀態貸款和止贖財產的未償本金，這導致 2022 年第三季度每股攤薄普通股的收益拖累了約 0.05 美元。正如凱文所提到的，有效解決我們的不良貸款仍然是重中之重，因為我們將繼續努力解決這些問題，以實現 Broadmark 的最佳結果並以增加股東的方式。最終，我們努力創造強勁的現金流和盈利增長。因此，在我們努力最大限度地提高績效時，有效地執行這一戰略至關重要。

Now, turning to our balance sheet, as detailed on Slide 16 of our earnings presentation, with $61 million of cash and a fully undrawn $135 million credit facility, our total liquidity at $196 million as of September 30. While our loan payoffs were significant in the third quarter of 2022 at $198 million, this was largely due to a few expected prepayments on storage facility loans. However, given the changing economic backdrop, we began to see a slowdown in payoff activity in October associated with a decrease in available takeout financing in the market. We continue to work with borrowers to find exit opportunities, as we focus on capital and liquidity preservation.

現在，轉向我們的資產負債表，正如我們收益報告幻燈片 16 中所詳述的那樣，有 6100 萬美元的現金和完全未提取的 1.35 億美元信貸額度，截至 9 月 30 日，我們的總流動資金為 1.96 億美元。雖然我們的貸款償還額在2022 年第三季度為 1.98 億美元，這主要是由於一些預期的存儲設施貸款預付款。然而，鑑於不斷變化的經濟背景，我們開始看到 10 月份的回報活動放緩，這與市場上可用的外賣融資減少有關。我們將繼續與借款人合作尋找退出機會，因為我們專注於資本和流動性保全。

With our $100 million of 5 year, 5% fixed coupon senior unsecured notes outstanding, we currently have a debt-to-equity ratio of 8.8%, which remains the strongest in the mortgage REIT sector. Maintaining a fortress balance sheet has always been a foundational principle for Broadmark, and this provides a significant competitive advantage in the current environment that will allow us to remain opportunistic with an evolving market environment.

憑藉我們 1 億美元的 5 年期、5% 固定息票高級無抵押票據的流通，我們目前的債務權益比率為 8.8%，這仍然是抵押房地產投資信託行業中最強勁的。維持穩健的資產負債表一直是 Broadmark 的基本原則，這在當前環境中提供了顯著的競爭優勢，使我們能夠在不斷變化的市場環境中保持機會主義。

With that, I'd like to pass the call back to Jeff.

有了這個，我想把電話轉給傑夫。

Thank you, David. We understand that we delivered a significant amount of news this afternoon. Given the circumstances, the Board will continue to take clear, decisive action on behalf of shareholders as necessary. We have a leadership team in place that has significant and proven industry experience that will work together to unlock long-term value. We understand this will take time. But we know the right path forward and given our alignment of interest with our shareholders, we can and will achieve the desired results.

謝謝你，大衛。我們了解到，我們今天下午發布了大量新聞。鑑於這種情況，董事會將繼續在必要時代表股東採取明確、果斷的行動。我們擁有一支擁有豐富且久經考驗的行業經驗的領導團隊，他們將共同努力釋放長期價值。我們知道這需要時間。但我們知道正確的前進道路，並且考慮到我們與股東的利益一致，我們能夠並且將會取得預期的結果。

This concludes our prepared remarks. We will now open up the line for questions. Operator?

我們準備好的評論到此結束。我們現在將打開問題線。操作員？

(Operator Instructions) The first question we have is from Stephen Laws from Raymond James.

（操作員說明）我們的第一個問題來自 Raymond James 的 Stephen Laws。

I guess, the first I want to start with talking to you, the management change. Can you talk about timing of what you think it'll look like to get the new permanent team in place, any search expenses, severance expenses we need to think about in the model and -- that I believe David gave a comment on the full year, but how do we think about expenses around the turnover?

我想，首先我想和你談談，管理層變動。您能否談談您認為新的永久團隊就位的時間安排、我們需要在模型中考慮的任何搜索費用、遣散費以及 - 我相信大衛對完整的評論發表了評論年，但我們如何考慮營業額周圍的費用？

I'll let David address those parts. But this just happened, Stephen. And so, the Board is going to begin a search to find a new CEO, and I think the important takeaway there is that Kevin and I, who both have a lot of experience working together in this company, are committed to being here until we find that person and get him or her up to speed.

我會讓大衛解決這些問題。但這只是發生了，斯蒂芬。因此，董事會將開始物色新的 CEO，我認為重要的收穫是凱文和我，在這家公司都有豐富的合作經驗，他們承諾會留在這裡，直到我們找到那個人，讓他或她跟上進度。

And then David, you want to discuss the costs and so on, that part of the question?

然後大衛，你想討論成本等問題嗎？

Sure. Yes, absolutely. Thanks. Thanks, Stephen. Great to hear from you. So the current structure with the leadership changes that we described with -- specifically with Jeff and Kevin coming on board, those will have no material expense. In fact, there is probably a bit of a net savings from that perspective. Longer term, to your question, if we do engage a search firm, there could be a potential search fees associated that's similar to what we incurred in the first quarter of this year. But it's probably too soon to tell what that number would be. So, I think right now, I'm still comfortable running with the $24 million of cash comp and G&A expenses, and we can provide you an update in the interim or in the fourth quarter.

當然。是的，一點沒錯。謝謝。謝謝，斯蒂芬。很高興聽到你的消息。因此，我們描述的當前結構以及我們所描述的領導層變動——特別是傑夫和凱文的加入，這些都不會產生實質性費用。事實上，從這個角度來看，可能會有一點淨節省。從長遠來看，對於您的問題，如果我們確實聘請了一家獵頭公司，可能會產生與我們在今年第一季度發生的類似的潛在搜索費用。但現在說這個數字可能還為時過早。所以，我認為現在，我仍然可以應付 2400 萬美元的現金補償和 G&A 費用，我們可以在中期或第四季度為您提供更新。

All right. To think about the investment portfolio, I saw on a footnote on the supplement, I think you did your first mezz loan at $10 million. Given the change and the increased focus on asset management or continued focus on improved portfolio performance, how do you think about portfolio transition or appetite for mezz loans? Is that something you'd be -- sort of put on hold until you get the new team in place, or how do you look at that?

好的。想想投資組合，我在補充的腳註中看到，我認為你的第一筆夾層貸款是 1000 萬美元。鑑於資產管理的變化和對資產管理的日益關注或對改善投資組合績效的持續關注，您如何看待投資組合過渡或對夾層貸款的需求？你會是這樣嗎——在你組建新團隊之前暫時擱置，或者你怎麼看？

Jeff, why don't you take that on the mezz loan piece?

傑夫，你為什麼不把那個放在夾層貸款上？

Apologies. It seems Jeffrey has dropped off, and he is in the process of reconnecting with us.

道歉。杰弗裡似乎已經放棄了，他正在與我們重新建立聯繫。

So, Stephen, I'll take this. This is Kevin. No change to the strategy. Broadmark has always made loan decisions based on underwriting and attractiveness, and so they'll continue to do that. But it's early days. So, we're going to look at all that.

所以，斯蒂芬，我會接受這個。這是凱文。策略沒有變化。 Broadmark 一直根據承保和吸引力做出貸款決定，因此他們將繼續這樣做。但現在還為時過早。所以，我們要看看這一切。

Dave, do you have anything to add?

戴夫，你有什麼要補充的嗎？

No. I mean I think when we did the first mezzanine loan, we said don't expect this to be a large portion of our portfolio. I think the focus is just on finding good risk-weighted investments, while also kind of juggling that with capital and liquidity preservation. So, doesn't mean we're going to do a bunch of mezzanine loans. It doesn't mean we won't do mezzanine loans. I think we're just looking for good opportunities to deploy capital, while being mindful of the current macro environment.

不。我的意思是，我認為當我們進行第一筆夾層貸款時，我們說過不要指望這會成為我們投資組合的很大一部分。我認為重點只是尋找良好的風險加權投資，同時還要兼顧資本和流動性保護。所以，這並不意味著我們要做一堆夾層貸款。這並不意味著我們不會做夾層貸款。我認為我們只是在尋找部署資本的好機會，同時注意當前的宏觀環境。

Great. And when we think about the dividend level versus current portfolio earnings, given the performance levels, how do you think about the trade-off of continuing to maintain a stable dividend that's not being covered, or do you think about right-sizing the dividend and increasing it back up as portfolio performance improves?

偉大的。當我們考慮股息水平與當前投資組合收益時，考慮到業績水平，您如何考慮繼續保持未覆蓋的穩定股息的權衡，或者您是否考慮正確調整股息和隨著投資組合業績的改善而增加它？

I'll take that one. Ultimately, Stephen, this is a Board decision that is reviewed and determined each month. So, in light of the rapidly changing business environment, management is taking a hard look at the business. That work is ongoing and will take a little time. The Board's policy is always strive to set a dividend that is sustainable and that over time is covered by distributable EPS. But again, it's a Board decision, and they'll continue to review and determine it each month.

我會拿那個。最終，斯蒂芬，這是每月審查和確定的董事會決定。因此，鑑於瞬息萬變的商業環境，管理層正在認真審視業務。這項工作正在進行中，需要一點時間。董事會的政策始終致力於設定可持續的股息，並且隨著時間的推移由可分配每股收益覆蓋。但同樣，這是董事會的決定，他們將繼續每月審查和確定。

(Operator Instructions) The next question we have is from Steve Delaney from JMP Securities.

（操作員說明）我們的下一個問題來自 JMP 證券公司的 Steve Delaney。

Probably wasn't part of -- necessarily part of your plan 6 months ago. But I respect you have a lot of talent to bring to bear and the company is lucky to have you to step in.

6 個月前可能不是你計劃的一部分——必然是你計劃的一部分。但我尊重你有很多才能發揮，公司很幸運有你介入。

So we are in a very different world than we were 6 months, 12 months ago from a real estate standpoint. Brian, there was obviously some enthusiasm he referred to a rebranding, I think just maybe trying to raise visibility and broaden products. Unfortunately, maybe where we are right now in terms of priorities in the market for all real estate lenders, maybe broadening or expanding is less important than focusing on the existing portfolio.

因此，從房地產的角度來看，我們所處的世界與 6 個月、12 個月前截然不同。布賴恩，他提到品牌重塑顯然有一些熱情，我想可能只是試圖提高知名度和擴大產品範圍。不幸的是，就所有房地產貸方的市場優先事項而言，也許我們現在所處的位置，也許擴大或擴張不如專注於現有的投資組合重要。

I guess, my question there is about your current lending focus. Can you talk about what you're comfortable doing and -- you're having repayments, obviously, come in, although the next part of my question is the slowdown there. I was caught by David's comment about takeout financing and that seems logical. So, as we think about it today and as your team comes to work, what is the, like, intensity or focus about generating new credits, relative to where it may have been over the last couple of years? Can you just comment that -- on that and whether there is a different level of selectivity, yield requirement, et cetera at this time in your lending appetite?

我想，我的問題是關於您當前的貸款重點。你能談談你喜歡做什麼嗎？顯然，你有還款，儘管我的問題的下一部分是那裡的放緩。我被大衛關於外賣融資的評論所吸引，這似乎是合乎邏輯的。那麼，當我們今天思考它以及當您的團隊開始工作時，相對於過去幾年的情況，產生新學分的強度或重點是什麼？您能否就此發表評論，以及此時您的貸款需求是否存在不同程度的選擇性、收益率要求等？

Sure. That's a lot packed into that question, Steve.

當然。史蒂夫，這個問題包含了很多內容。

Yes.

是的。

And I guess, the overarching theme is that whether I was in the seat or Brian, or now me again, we have never changed from our strict underwriting standards. We -- when you and I first met, I think we were in 9 states. We're now a national lender. We look at every market with the same careful eye that we always have and so -- and every loan opportunity. And so, we still make sure that we're paying attention to loan-to-value ratios, to loan-to-cost ratios, to all those things that have always been underpinnings of our loan portfolio. And in these markets, it's -- it is an uncertain time. And so, we probably want to look a little more carefully. Not -- that's probably not the right term, but we want to continue to look carefully and just make sure that we're underwriting good loans.

而且我想，最重要的主題是，無論我是坐在席位上還是布萊恩，還是現在的我，我們都沒有改變我們嚴格的承保標準。我們——當你和我第一次見面時，我想我們在 9 個州。我們現在是國家貸款機構。我們以與往常一樣的謹慎眼光看待每一個市場——以及每一個貸款機會。因此，我們仍然確保我們關注貸款與價值比率、貸款與成本比率，以及所有那些一直是我們貸款組合基礎的東西。在這些市場中，這是一個不確定的時期。所以，我們可能想更仔細地看一下。不 - 這可能不是正確的術語，但我們希望繼續仔細研究並確保我們正在承保良好的貸款。

This is Kevin. Let me just add a little bit to that. And I think careful is an appropriate word. Payoffs are an important source of capital for us and -- for the reasons David mentioned, rising interest rates, rising cap rates, the exits are difficult for our borrowers and we expect that they will be for who knows how long. But -- so, we're just being cautious and careful, but we are a lender and so, we're going to continue to make good loans where they are available.

這是凱文。讓我補充一點。我認為小心是一個恰當的詞。對我們來說，收益是一個重要的資金來源——出於大衛提到的原因，利率上升，上限利率上升，我們的借款人很難退出，我們預計他們會持續多久，誰知道。但是 - 所以，我們只是謹慎小心，但我們是貸方，因此，我們將繼續在可用的地方提供優質貸款。

And on your borrower situation, I assume if you have a good property and you have a recently responsible borrower and he is basically just saying, one, normally you would think okay if I complete it, I sell it; two, I just -- I re-fi it in some fashion. You have a certain term. You're in there for the renovation or construction, and you're not in there necessarily for a 5-year loan. This is your primary. If it's a good borrower and a good property, is the logical thing to do just to provide extensions and have that developer get more involved in leasing or whatever the strategic plan was for the property, if in fact a new operator can't be brought into the property or, in fact, for -- on your REO? You guys have a lot of expertise. Do you -- are you thinking about something for your REO if there's just not going to be a bid that you like to kind of take over and manage that property in the interim and try to write this thing out without giving away property?

至於你的借款人情況，我假設如果你有一個好的房產並且你有一個最近負責任的借款人，他基本上只是說，一個，通常你會認為如果我完成它，我賣掉它；二，我只是 - 我以某種方式重新定義它。你有一個特定的期限。您在那裡進行裝修或建設，而您不一定需要 5 年期的貸款。這是你的主要。如果它是一個好的借款人和一個好的房產，那麼提供擴展並讓開發商更多地參與租賃或該房產的任何戰略計劃是合乎邏輯的事情，如果事實上不能帶來一個新的運營商進入房產，或者，事實上，在你的 REO 上？你們有很多專業知識。如果沒有出價，您是否願意在過渡期間接管和管理該財產並嘗試在不放棄財產的情況下將其寫出來，您是否正在為您的 REO 考慮一些事情？

Kevin or David, do you want...

凱文還是大衛，你想要...

Yes. Yes, I'll take it. I'd say it's -- Steve, it's a case-by-case basis, and that's exactly what we're working on. The answers are different depending on the situation.

是的。是的，我會接受的。我想說的是——史蒂夫，這是逐案處理的，這正是我們正在做的事情。答案因情況而異。

Well, listen, I know it's a challenging time. You've got a great fortress balance sheet, and I'm sure that you'll come through it, and applaud the effort on the buyback. And I can echo Stephen Laws' comment. The dividend's, obviously, a Board decision. There's going to be a lot of dividends reconsidered simply -- one, a 15% yield is kind of crazy. But two, you got to balance it against liquidity needs and the buyback opportunity. So, nobody signed on buying your stock thinking that we're going to get 15% yield. So, I'll just leave it with that thought and wish you all well and good health.

好吧，聽著，我知道這是一個充滿挑戰的時期。你有一個很好的堡壘資產負債表，我相信你會通過它，並為回購的努力鼓掌。我可以回應 Stephen Laws 的評論。顯然，股息是董事會的決定。簡單地重新考慮很多股息——第一，15%的收益率有點瘋狂。但是第二，你必須平衡它與流動性需求和回購機會。因此，沒有人認為我們將獲得 15% 的收益率而簽署購買你的股票。所以，我會帶著這個想法離開它，祝大家身體健康。

The next question we have is from Crispin Love from Piper Sandler.

我們的下一個問題來自 Piper Sandler 的 Crispin Love。

Just starting with the leadership transition, Jeff, I'm just curious, why now for the change in CEO as Brian's just been in the seat for about 8 months or so in what's been a very difficult economic environment. And just related to that, do you expect any strategic changes with a new CEO?

剛從領導層過渡開始，傑夫，我很好奇，為什麼現在因為布賴恩在非常困難的經濟環境中擔任 CEO 大約 8 個月左右，所以現在換了 CEO。與此相關的是，您是否期望新 CEO 會發生任何戰略變化？

The why now, I think the answer is that the Board and Brian sat down and looked around and decided this was the right time. And I think -- I don't think I can go much beyond that candidly. And then as far as strategic changes, Brian did a lot of good work around here. I don't see us unraveling all of the good work that he did, if that's the question. And we've got great management in place, the underwriting and the portfolio management are all good folks. And so, I really think the underpinnings are good for where we are.

為什麼現在，我認為答案是董事會和布賴恩坐下來環顧四周，並認為這是正確的時間。而且我認為 - 我認為我不能坦率地超越這一點。然後就戰略變化而言，Brian 在這裡做了很多出色的工作。如果這是問題的話，我認為我們不會揭開他所做的所有出色工作。而且我們有很好的管理，承銷和投資組合管理都是好人。所以，我真的認為這些基礎對我們所處的位置有好處。

That's helpful. And then a second one, just on loans in contractual default, so they're now just under $290 million. Can you just speak to some of the key reasons for the continued increases that we've seen? Is it due to being more aggressive in putting loans in contractual default, which Brian has talked about in the past, or is it the current environment or, just curious, what else might be at play here?

這很有幫助。然後是第二個，只是合同違約貸款，所以他們現在不到 2.9 億美元。您能否談談我們所看到的持續增長的一些關鍵原因？是因為更積極地將貸款置於合同違約中，這是布萊恩過去談到的，還是當前的環境，或者只是好奇，這裡還有什麼可能在起作用？

This is David. I'll take this one and let Kevin and Jeff comment as needed. So, I think we were up quarter-over-quarter about $60 million in defaults, and the biggest driver I would say is primarily the latter in terms of being more aggressive. I can note that I think $40 million out of the $60 million was us deciding to strategically put 7 loans, 6 of them were performing, 1 was default, with the same borrower, and we decided to put the whole package in default just to expedite the process around. Probably the most valuable, but risky loan that -- the one in default. So, we're making a little bit quicker decisions around putting borrowers in default, exercising our right to start the foreclosure process to put a little bit more pressure and just trying to find more timely exits.

這是大衛。我會拿這個，讓凱文和傑夫根據需要發表評論。因此，我認為我們的違約金額環比增加了約 6000 萬美元，而我想說的最大驅動因素主要是後者更具侵略性。我可以注意到，我認為 6000 萬美元中的 4000 萬美元是我們決定戰略性地放出 7 筆貸款，其中 6 筆正在執行，1 筆違約，同一借款人，我們決定將整個一攬子貸款違約只是為了加快周圍的過程。可能是最有價值但風險最大的貸款——違約貸款。因此，我們正在更快地做出決定，讓借款人違約，行使我們開始止贖過程的權利，以施加更大的壓力，並試圖找到更及時的退出。

In the third quarter, I think we had about $18 million of defaults resolved. In October, I want to say we were about $20 million, and we're expecting kind of a little bit of an increased pace consistent with that on a monthly basis just by way of being a little bit pushier, being a little bit tougher, being more aggressive with foreclosure actions or threaten foreclosure action and finding ways to exit as quickly as we can.

在第三季度，我認為我們解決了大約 1800 萬美元的違約問題。 10 月份，我想說我們的收入約為 2000 萬美元，我們預計會以與每月一致的速度略有增加，只是會變得更加激進，更加艱難，更積極地採取止贖行動或威脅採取止贖行動，並儘快找到退出的方法。

And just one last one from me, just on the $12 million provision in the quarter. Was that provision -- was it all due to the Colorado hotel loan? And then what is the size of that loan?

最後一個來自我，就在本季度的 1200 萬美元準備金上。是那個條款——都是因為科羅拉多酒店的貸款嗎？那麼這筆貸款的規模是多少？

Sure. I'll take that one, Crispin. It's nearly totally driven. So I think our increase quarter-over-quarter was about $10 million, and $9.1 million of that was a specific reserve on this one Colorado World Resorts loan. It was about a -- about a 40% discount to the principal outstanding in the appraised value that we had originally expected on it.

當然。我要那個，克里斯平。它幾乎完全被驅動了。因此，我認為我們的環比增長約為 1000 萬美元，其中 910 萬美元是科羅拉多世界度假村貸款的特定準備金。在我們最初預期的評估價值中，這大約是未償本金的 40% 折扣。

The final question we have is from Matthew Howlett from B. Riley.

我們的最後一個問題來自 B. Riley 的 Matthew Howlett。

My question is on the buyback. I mean, Jeff, I think a lot of shareholders are going to ask the question. I'm curious to hear the answer. When you look at buying back shares today, your stock's roughly at a 30% discount to tangible book value. You look at that for us originating loans at 13% unlevered, what can you tell us in terms of the propensity of the Board today to aggressively pursue share repurchases in light of the stock's discount to tangible book, and what metrics do you look at versus -- originating versus buying back shares?

我的問題是關於回購。我的意思是，傑夫，我想很多股東都會問這個問題。我很想听到答案。當您考慮今天回購股票時，您的股票大約比有形賬面價值低 30%。你看看我們的 13% 無槓桿原始貸款，你能告訴我們董事會今天根據股票對有形賬面的折讓而積極進行股票回購的傾向，以及你看什麼指標與——發起與回購股票？

Kevin, would you handle this one, please?

凱文，請你處理一下這個好嗎？

Sure, sure. The Board did approve a $75 million share repurchase program. It's just one additional capital allocation lever that we think is prudent to have. So in terms of our use of capital, our main business is to source and fund loan originations. But we do understand the value of our company. And again, we thought it was prudent to have this additional lever, on which to potentially act in the future. I'll also say that we announced the plan, but the amount, the timing, the execution, all of that is part of our overall capital allocation strategy, which will determine over time. So not much to add in terms of price or expectation, or all that kind of stuff.

一定一定。董事會確實批准了一項價值 7500 萬美元的股票回購計劃。這只是我們認為謹慎的一種額外資本配置槓桿。因此，就我們的資金使用而言，我們的主要業務是尋找和資助貸款發放。但我們確實了解我們公司的價值。再一次，我們認為擁有這個額外的槓桿是謹慎的做法，未來可能會在這個槓桿上採取行動。我還要說我們宣布了計劃，但數量、時間、執行，所有這些都是我們整體資本配置策略的一部分，這將隨著時間的推移而確定。因此，在價格或期望或所有類似的東西方面沒有太多可補充的。

In terms of the dividend, you asked about that, obviously, it's a balance. It's -- both are taken in consideration. Our shareholders expect dividends. Our goal, as I said, is to set a dividend that's sustainable over time and covered by distributable EPS. So, we'll continue to do that, our Board will continue to do that. This is just another use of capital lever that we now have.

就股息而言，你問過這個問題，顯然，這是一種平衡。這是 - 兩者都被考慮在內。我們的股東期望分紅。正如我所說，我們的目標是設定隨著時間的推移可持續並由可分配每股收益覆蓋的股息。因此，我們將繼續這樣做，我們的董事會將繼續這樣做。這只是我們現在擁有的資本槓桿的另一種用途。

Got you. But when you look at -- obviously, is tangible book value of the stock price to tangible book, a good reason -- reasonable proxy on when it would be attractive to buy back shares versus originating. I mean, just walk me through the accretion sort of analysis. I guess, my question is, why wouldn't that take priority when the stock is at tangible -- meaningful discount to book?

得到你。但是，當您查看 - 顯然，股票價格的有形賬面價值與有形賬面相比，這是一個很好的理由 - 合理地代表何時回購股票與原始股票相比更具吸引力。我的意思是，請引導我完成吸積分析。我想，我的問題是，當股票是有形的——預訂有意義的折扣時，為什麼不優先考慮呢？

It's something we'll analyze, but I can't tell you exactly what the price is or how we're going to look at it. We put the plan in place and now, we intend to do the work and execute when we think it's appropriate.

這是我們將分析的東西，但我不能確切地告訴你價格是多少或我們將如何看待它。我們制定了計劃，現在，我們打算在我們認為合適的時候做這項工作並執行。

Okay, fair enough. And then on that -- on the topic of yield, I mean, obviously, there was guidance of yields falling over time, I think 10% to 12% earlier (inaudible) 13%, I mean, with spreads now, higher interest rates, I mean, is -- can we sort of look at our models and say, the margin, the spread -- the unlevered spreads are going to start moving the other way, given the environment we're in, or is something else there?

好吧，夠公平的。然後，關於收益率的話題，我的意思是，很明顯，收益率隨著時間的推移而下降，我認為早先 10% 到 12%（聽不清） 13%，我的意思是，現在的利差，更高的利率，我的意思是——我們可以看看我們的模型，然後說，邊際，價差——考慮到我們所處的環境，無槓桿的價差將開始以另一種方式移動，或者那裡有其他東西?

I'll say something just generally, and then I'll turn it over to David for more specifics. We do think, given all the dislocation, that there will be opportunities. We want to be poised to take advantage of those opportunities. It might be -- it's still very early. There is a -- so -- but in terms of kind of where we see that, I'll let David answer the questions more specifically.

我會說一些一般性的話，然後我會把它交給大衛了解更多細節。考慮到所有的錯位，我們確實認為會有機會。我們希望準備好利用這些機會。可能是——現在還為時過早。有一個--所以--但就我們看到的地方而言，我會讓大衛更具體地回答問題。

Sure. Thanks for the question, Matt. This is David. Yes, so we were at 12.9% on new originations on yield unlevered this quarter. I think last quarter, we were around 10.1%. So I think we talked a little bit last quarter about there being a lag in timing in terms of price discovery from bid-ask spread on construction lending. So I think this was the first quarter we started to see that close. Now I would say some borrowers are probably hesitant to pull the trigger and do new loans, given the current macroeconomic environment. But we did finally start to see that gap close a bit from the bid-ask spread and it went in our favor. So I think we said in our prepared remarks, expect to be somewhere around 12% to 13% at least in the near term, and that's -- I think that just feels good based off this past quarter.

當然。謝謝你的問題，馬特。這是大衛。是的，所以我們在本季度無槓桿的新發行收益率為 12.9%。我認為上個季度，我們大約是 10.1%。因此，我認為我們在上個季度談到了建築貸款買賣差價的價格發現方面存在時間滯後。所以我認為這是我們開始看到接近尾聲的第一季度。現在我想說，鑑於當前的宏觀經濟環境，一些借款人可能對扣動扳機並提供新貸款猶豫不決。但我們終於開始看到這個差距從買賣差價中縮小了一點，這對我們有利。所以我認為我們在準備好的評論中說過，預計至少在短期內會達到 12% 到 13% 左右，這是 - 我認為從上個季度來看感覺很好。

Got you. And I guess, just the last question while I have you, I mean, clearly, the priority is to get through the non-accruals that cost you free cash and capital, but what -- are the debt markets -- I mean, are they available to Broadmark? And we talked about in the past, I mean, maybe not -- maybe things have changed now. But I mean, what -- you look at the leverage, it does stand out. I mean, there's nothing, obviously, due for well, 8.8%, but I mean, what -- what's -- when you talk about issuing debt, what can you tell us in terms of where you can issue at?

得到你。我想，當我有你的時候，我的意思是最後一個問題，我的意思是，很明顯，優先事項是通過非應計費用讓你花費免費現金和資本，但是債務市場是什麼——我的意思是， Broadmark 可以使用它們嗎？我們過去談過，我的意思是，也許不是——也許現在事情已經改變了。但我的意思是，你看看槓桿，它確實很突出。我的意思是，沒有什麼，顯然，8.8% 到期，但我的意思是，當你談到發行債務時，你能告訴我們什麼可以在哪裡發行？

Sure. I mean, I'll take this and let Kevin and Jeff chime in as well. I mean, right now, it doesn't seem like the time to be raising capital. We still continue to have conversations where we're ready to access the capital markets if they -- if we see some windows of sustainability. But current market, you can see how few transactions there are. So, as I -- we certainly wouldn't be able to execute at a 5% fixed rate coupon like we did in November. I wish I could go back in time and triple the size of that. But I think in terms of cash liquidity position, we feel good about where we are for now. We're measuring that against our origination pipeline, other demands like the dividend and where share repurchases could come into play in the future.

當然。我的意思是，我會接受這個，讓凱文和傑夫也加入進來。我的意思是，現在似乎不是籌集資金的時候。如果我們看到一些可持續發展的窗口，我們仍然會繼續進行對話，我們準備好進入資本市場。但是目前的市場，你可以看到有多少交易。所以，就像我一樣——我們當然不能像 11 月那樣以 5% 的固定利率票息執行。我希望我能回到過去，把它的規模擴大三倍。但我認為就現金流動性狀況而言，我們對目前的狀況感覺良好。我們正在根據我們的發起渠道、股息等其他需求以及未來可能在哪些方面進行股票回購來衡量這一點。

So, I think there's a few different levers that we're measuring. But we don't need capital right now. Now, it feels like a time where if you're raising capital, it's a bit of a really urgent need or desperation, which we're not in that position. So, we continue to monitor it and hopeful that we'll see some more transaction volume in the near term.

所以，我認為我們正在衡量一些不同的槓桿。但我們現在不需要資金。現在，感覺就像是一個時候，如果你正在籌集資金，這是一個非常迫切的需求或絕望，我們不在那個位置。因此，我們將繼續對其進行監控，並希望我們能在短期內看到更多的交易量。

I would just add -- I would echo what David said, but that -- the job is to stay in touch with the capital markets, like all REITs need to stay in touch. It's a capital-intensive business. We need capital. So, whether now is the right time, I don't disagree with what David said, but that can change. And so, we need to just be ready. And so, that's what we'll try to be.

我只想補充——我會回應大衛所說的話，但是——工作是與資本市場保持聯繫，就像所有房地產投資信託基金都需要保持聯繫一樣。這是一項資本密集型業務。我們需要資金。所以，不管現在是不是合適的時機，我不同意大衛所說的，但這可能會改變。所以，我們需要做好準備。所以，這就是我們要努力做到的。

My question asked another way, but do you still feel like the model could support when the time is right, a turn of leverage or half -- something where there is leverage on the balance sheet?

我的問題以另一種方式提出，但您是否仍然覺得該模型可以在時機成熟時提供支持？

No decision. So, I think it all depends on how everything -- it's just another decision that we make. It depends on loans that we can originate. So, no, I'm not signaling anything more than that. It's just being in touch with the markets. I think, as David has mentioned in past calls, we constantly evaluate the capital markets and make decisions all the time. So, we'll just keep doing that.

沒有決定。所以，我認為這一切都取決於一切 - 這只是我們做出的另一個決定。這取決於我們可以發起的貸款。所以，不，除此之外，我沒有發出任何信號。它只是與市場保持聯繫。我認為，正如大衛在過去的電話會議中提到的那樣，我們一直在不斷評估資本市場並做出決定。所以，我們將繼續這樣做。

Good luck on the search and we'll await an update.

祝您搜索順利，我們將等待更新。

That concludes the question-and-answer session. I would like to turn the floor back over to management for closing remarks. Jeffrey, please go ahead, sir.

問答環節到此結束。我想把發言權交回管理層以結束髮言。杰弗裡，請繼續，先生。

Thank you, everyone, for joining us. One last time, David Schneider, we all wish you the very best, and I look forward to speaking with all of you on our next call. Thank you.

謝謝大家加入我們。最後一次，大衛施耐德，我們都祝你一切順利，我期待在下一次電話會議上與大家交談。謝謝你。

Thank you, sir. Ladies and gentlemen, that then concludes today's conference. Thank you for joining us. You may now disconnect your lines.

謝謝你，先生。女士們，先生們，今天的會議到此結束。感謝您加入我們。您現在可以斷開線路。