Nexpoint Real Estate Finance Inc (NREF) 2024 Q3 法說會逐字稿

Hello. At this time, I would like to welcome everyone to the Nexpoint Real Estate Finance Inc Incorporated Q3 2024 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. You would like to withdraw your question again. Just press star and the number one, I would now like to turn the call over to Kristen Thomas Investor Relations. You may begin.

你好。現在，我歡迎大家參加 Nexpoint Real Estate Finance Inc Incorporated 2024 年第三季財報電話會議。所有線路均已靜音以防止任何背景噪音。演講者發言後，將進行問答環節。如果您想在此期間提問，只需在電話鍵盤上按下星號，然後按數字 1 即可。您想再次撤回您的問題。只要按下星號和數字 1，現在我想將電話轉給 Kristen Thomas 投資者關係部門。你可以開始了。

Thank you. Good day, everyone and welcome to Next Point Real estate finance conference call to review the company's results for the third quarter ended September 30th2024 on the call. Today are Brian Mitts, executive Vice President and Chief Financial Officer, Matthew Mcgraner, executive Vice President and Chief Investment Officer and Paul Vice President, originations and Investments. As a reminder, this call is being webcast through the company's website website at NRE dot nextpoint dotcom. Before we begin, I would like to remind everyone that this conference call contains forward-looking statements within the means of the Private Securities Litigation Reform Act of 1,995 that are based on management's current expectations, assumptions and beliefs. Listeners should not place undue reliance on any forward-looking statements and are encouraged to review the company's annual report on form 10-K and the company's other filings with SCC for a more complete discussion of risk and other factors that could affect the forward-looking statements. The statements made during this conference call speak only as of today date and except as required by law and does not undertake any obligation to publicly update or revise any forward-looking statements. This conference call also includes an analysis of non-GAAP financial measures for a more complete discussion of these non-GAAP financial measures. See the company's presentation that was filed earlier today. Our now I turn the call over to Brian Mitts. Please go ahead, Brian.

謝謝。大家好，歡迎參加 Next Point 房地產財務電話會議，回顧該公司截至 2024 年 9 月 30 日第三季的業績。今天出席的有執行副總裁兼財務長 Brian Mitts、執行副總裁兼首席投資長 Matthew Mcgraner 以及負責發起和投資的副總裁 Paul。提醒一下，本次電話會議將透過公司網站 NRE dot nextpoint dotcom 進行網路直播。在我們開始之前，我想提醒大家，本次電話會議包含符合 1995 年《私人證券訴訟改革法案》的前瞻性陳述，這些陳述是基於管理層當前的預期、假設和信念。聽眾不應過度依賴任何前瞻性陳述，並應查看公司 10-K 表年度報告和公司向 SCC 提交的其他文件，以更全面地討論可能影響前瞻性陳述的風險和其他因素。本次電話會議所作的聲明僅代表截至今日的觀點，除非法律另有規定，且不承擔公開更新或修改任何前瞻性聲明的義務。本次電話會議還包括對非公認會計準則財務指標的分析，以便更全面地討論這些非公認會計準則財務指標。請參閱今天早些時候提交的公司簡報。現在我將電話轉給 Brian Mitts。請繼續，布萊恩。

Thanks Kristen. I appreciate everybody's time this morning. I'm Brian Mitts. I'm joined today by Matthew Mcgraner and Paul Richards. I'm going to start the excuse me, the conference by briefly going through our quarterly results. Get some, some portfolio and balance sheet stats and then our guidance for the next quarter and then I'll turn it over to Matt the team to go through the portfolio in detail.

謝謝克里斯汀。我感謝大家今天上午抽出時間。我是布萊恩·米茨。今天與我一起參加的還有 Matthew Mcgraner 和 Paul Richards。抱歉，我將透過簡要介紹我們的季度業績來開始會議。取得一些投資組合和資產負債表統計數據，然後取得我們對下一季的指導，然後我會將其交給馬特團隊詳細討論投資組合。

Our Q3 results were as follows. For the third quarter, we reported net income of $0.34 per diluted share compared to net loss of $0.90 per diluted share for the third quarter. 2023 the increase in the net income for the quarter was due to unrealized gains on our common stock investments as well as an increase in net interest income, interest income increased by $5.6 million to $23.6 million in the third quarter. For from $18 million in the third quarter of 2023. The increase is driven by our increase in interest income which is driven by higher rates as well as lower interest expense from deleveraging that occurred in the first quarter of this year.

我們的第三季業績如下。第三季度，我們報告每股攤薄淨收入為 0.34 美元，而第三季每股攤薄淨虧損為 0.90 美元。 2023年季度淨收入的增加是由於我們普通股投資的未實現收益以及淨利息收入的增加，第三季利息收入增加560萬美元至2360萬美元。2023 年第三季起價為 1800 萬美元。成長的主要原因是我們的利息收入增加，而利息收入增加是由於今年第一季利率上升以及去槓桿導致的利息支出減少。

Earnings available for distribution of $0.75 per diluted common share in Q3 compared to $0.43 per diluted share in the same period. Last year, cash available for distribution was $0.67 per diluted common share in the third quarter compared to $0.47 for the same period. Last year.

第三季每股攤薄普通股可供分配的收益為 0.75 美元，而去年同期每股攤薄普通股可供分配的收益為 0.43 美元。去年第三季可供分配現金為每股攤薄普通股 0.67 美元，而同期為 0.47 美元。去年。

The increase in earnings available for distribution was driven by the increase in net income for the quarter, $0.50 per share in the third quarter. And the board has declared a $0.50 dividend per share payable in the fourth quarter. 24.

可供分配收益的增加是由於本季淨收入的增加，第三季每股淨收入為 0.50 美元。董事會宣布第四季每股派發 0.50 美元的股息。24.

A regular dividend in the third quarter is 1.34 times covered by cash level for distribution.

第三季的常規股利為分配現金水準的1.34倍。

Book value per share increased 2.6% in the second quarter to $16.95 per diluted share. With the increase again being primarily due to the unrealized gains on our common stocks.

第二季每股帳面價值成長 2.6% 至每股 16.95 美元。再次，這一增長主要歸因於我們普通股的未實現收益。

During the quarter, we funded $28.8 million on a life science development property in Cambridge which redeemed $9.7 million of or sorry. We redeemed $9.7 million senior loans and sold an $82 million CM BS B piece with a bond equivalent yield of 9.2%.

本季度，我們為劍橋的一處生命科學開發地產注資 2,880 萬美元，目前已贖回 970 萬美元。我們贖回了 970 萬美元的優先貸款，並出售了價值 8,200 萬美元的 CM BS B 債券，債券當量收益率為 9.2%。

During the third quarter, we sold $1.9 million shares of our series B cumulative redeemable preferred shares for net proceeds of $42 million.

第三季度，我們出售了價值 190 萬美元的 B 系列累積可贖回優先股，淨收益為 4,200 萬美元。

Moving to the portfolio and balance sheet. Our portfolio is comprised of 83 investments with a total outstanding balance of $1.1 billion. Our investments are allocated across sectors as follows 17%. SFR 52.3% multi family, 26.7% Life sciences, 1.5% storage 1.8% specialty manufacturing and 0.6%. Merino.

轉向投資組合和資產負債表。我們的投資組合由 83 項投資組成，總未償還餘額為 11 億美元。我們的投資在各行業的分配如下：17%。SFR 52.3% 用於多戶住宅、26.7% 用於生命科學、1.5% 用於儲存、1.8% 用於專業製造以及 0.6%。美利奴。

Our fixed income portfolio is allocated across investments as follows. 11.2% senior loans, 31% CM BS B pieces, 20.1% preferred equity investments, 23.2% mezzanine loans, 4.2% io strips 1% M Bs and 9.2% promissory notes.

我們的固定收益投資組合分配如下。 11.2％ 優先貸款、31％ CM BS B 部分、20.1％ 優先股權投資、23.2％ 夾層貸款、4.2％ io strips 1％ M Bs 和 9.2％ 本票。

As far as the assets collateralizing our investments, they are allocated geographically as well as 16% Texas, 20% Massachusetts, 8% California, 6% Florida, 6% Georgia and 5% Maryland with the remainder of 4% across other markets. But heavily and in all of our portfolio is heavily exposed to sunbelt markets.

就我們投資的抵押資產而言，它們按地區分佈如下：16％在德克薩斯州，20％在馬薩諸塞州，8％在加利福尼亞州，6％在佛羅裡達州，6％在佐治亞州，5％在馬裡蘭州，其餘4％在其他市場。但我們所有的投資組合都嚴重依賴陽光地帶市場。

The collateral our portfolio is 77.5% stabilized.

我們的投資組合的抵押品穩定率為 77.5%。

And with 60.2% loan to value and weighted average Ds cr of 1.36 times, we have $816 million of debt outstanding of this $324 million or 39.7% of short-term debt. Our weighted average cost of debt is 6.1% and has a weighted average maturity of 1.4 years.

貸款價值比為 60.2%，加權平均 Ds cr 為 1.36 倍，我們在 3.24 億美元的債務中未償還債務為 8.16 億美元，佔短期債務的 39.7%。我們的加權平均債務成本為 6.1%，加權平均期限為 1.4 年。

Our debt is collateralized by $1.1 billion of collateral with a weighted average maturity of 3.9 years.

我們的債務有 11 億美元的抵押品作為擔保，加權平均期限為 3.9 年。

Our debt-to-equity ratio is 1.5252 times moving to guidance for the 4th quarter. We were guiding to earnings available for distribution of $0.79 per diluted share at the midpoint with a range of $0.75 on and the low in the ho we're guiding to cash available for just $0.50 per diluted share at the midpoint with a range of $0.45 on the low end and $0.55 on the high end.

我們的負債權益比為 1.5252 倍，符合第四季的指引值。我們預計每股攤薄收益的中間值為 0.79 美元，最高範圍為 0.75 美元，最低範圍為 0.75 美元。我們預計每股攤薄現金的中間值為 0.50 美元，最低範圍為 0.45 美元，最高範圍為 0.55 美元。

So, with that, let me turn it over to Matthew that good.

因此，讓我將其交給馬修。

Hey, thanks Brian. This is Paul Richards. I'm going to, I'm going to go before Matthew but I really appreciate, appreciate it. The results for the third quarter demonstrated strong performance in all of our investment sectors. We remain focused on areas where expertise and une but we can effectively harness information to evaluate and uncover value throughout the entire capital structure. With the goal of achieving superior risk adjusted returns. Our investment strategy remains centered on credit investments and assets that are either stable or nearing stabilization with an emphasis on meticulous underwriting, low leverage and a conservative debt structure. We prioritize lending to reputable sponsors to ensure consistent value for our shareholders in the third quarter. Although conditions in the commercial rural state market continue to improve, they remain somewhat challenging. Nonetheless, we successfully deployed capital into a creative investments and leverage strong bids in the secondary bond market to recycle seasoned bonds into two into new opportunities. The portfolio is geographically diverse with a strong preference for Sun Bell markets. Since the beginning of the first quarter, the company has been actively underwriting and deploying capital. An additional $28.8 million was funded on the Life Science Senior loan which carries an interest rate of so for plus 900 deps on the disposition and loan repayment front the capital, we capitalized on a strong bid pool in the secondary bond market selling a season B piece acquired during the depths of COVID at roughly 200 basis points tighter than the original purchase price. This generated a robust gain which was redeployed into newly originated and accretive deals at the close of the quarter. We maintain a cautious stance on repo financing, keeping the leverage within a 63% LTV range. We reduced our repo lines by approximately $40 million. Lowering our overall debt to book value ratio to 1.52 times. From over two-point times in the first quarter. We continue to actively communicate with our lending partners discussing market conditions and the performance of our finance CMBS portfolio. In summary, we continue to identify attractive investment opportunities across our target markets and asset classes. With a commitment to thorough evaluation aimed at enhancing shareholder value. We remain confident in the resilience of the residential sector especially in the current industry environment. Our investments in the multifamily and single-family segments are well positioned supported by historical performance and a favorable rent versus own dynamic that provides long term momentum for the sector. Additionally, we are highly optimistic about our investment pipeline in the life sciences and CD sector to finalize our prepared remarks before we turn it over to questions, I'd like to turn it over to Matt Mcgraner.

嘿，謝謝布萊恩。這是保羅理查茲。我要去，我要去馬修之前，但我真的很感激，很感激。第三季的業績表明，我們所有投資領域均表現強勁。我們仍然專注於需要專業知識和專業知識的領域，但我們可以有效地利用資訊來評估和發現整個資本結構的價值。目標是實現優異的風險調整回報。我們的投資策略仍然以信貸投資和穩定或接近穩定的資產為中心，強調細緻的承保、低槓桿和保守的債務結構。我們優先向信譽良好的贊助商提供貸款，以確保第三季為股東帶來持續的價值。儘管商業農村州市場狀況不斷改善，但仍面臨一定挑戰。儘管如此，我們成功地將資本投入到創造性的投資中，並利用二級債券市場的強勁投標將成熟債券回收利用，創造新的投資機會。此投資組合的地理分佈廣泛，且強烈偏向 Sun Bell 市場。自第一季開始，該公司一直積極承銷和部署資本。另外，我們為生命科學高級貸款提供了 2880 萬美元的資金，該貸款的利率為，加上資本處置和貸款償還的 900 個基點，我們利用二級債券市場的強大投標池，以比原始購買價低約 200 個基點的價格出售了在 COVID 最嚴重時期收購的 B 季債券。這產生了可觀的收益，並在本季末重新部署到新發起和增值交易中。我們對回購融資保持謹慎立場，將槓桿率保持在 63% 的 LTV 範圍內。我們將回購額度減少了約 4,000 萬美元。將我們的整體債務與帳面價值比率降低至 1.52 倍。從第一節的兩分多鐘開始。我們繼續積極與我們的貸款合作夥伴溝通，討論市場狀況和我們的金融 CMBS 投資組合的表現。總之，我們繼續在目標市場和資產類別中尋找有吸引力的投資機會。致力於進行全面評估，以提高股東價值。我們仍然對住宅產業的韌性充滿信心，尤其是在當前的產業環境下。我們對多戶型和單戶型住宅領域的投資定位良好，得益於歷史業績以及有利的租售比自有動態，為該行業提供了長期發展動力。此外，我們對生命科學和 CD 領域的投資管道非常樂觀，在我們將其轉入提問之前，我想將其交給 Matt Mcgraner，以便最終確定我們準備好的發言。

Thank you, Paul. Yes, we're very pleased with the quarter. Credit quality remains attractive and stable and we're also pleased with the increase in book value quarter over quarter, which is a great sign for the business absorption of record levels of multifamily supply continue to exceed our expectation in transaction activity is also picking up leasing in the life sciences sector is also increasing with particular strength in Q3 and the Kindle and MA submarkets, which is, which is, which is a positive for our LY loan.

謝謝你，保羅。是的，我們對本季的表現非常滿意。信貸品質仍然具有吸引力且保持穩定，我們也對帳面價值的季度環比增長感到滿意，這對業務吸收創紀錄水平的多戶型供應來說是一個很好的信號，交易活動也在回升，生命科學領域的租賃也在增加，特別是在第三季度以及 Kindle 和 MA 子市場表現強勁，這對我們的 LY 貸款來說是有利的。

Our storage business and exposure also had a nice quarter. The portfolio has recently achieved 90 plus percent occupancy across the entirety of the portfolio. A significant milestone for the portfolio as it moves into the stable stabilized operations and had an 11% increase year over year during the quarter in occupancy. We also closed on a highly accretive SASB financing in early October that recapitalized all of the company's outstanding debt stack with a fixed rate execution and strong interest from the market at tighter pricing than anticipated. So instead of monetizing, perhaps our storage assets in 2026 we could be in a position to monetize them in 2025 going forward. You'll likely see us be more active in the multi family sector over the next couple of quarters as we're underwriting approximately $250 million of opportunities for senior bridge loans, CBS and even construction financing within the sector.

我們的儲存業務和曝光度也在本季表現良好。該投資組合近期已實現整體 90% 以上的入住率。這是該投資組合進入穩定營運階段的一個重要里程碑，本季入住率年增 11%。我們還在 10 月初完成了一筆高增值 SASB 融資，該融資以固定利率執行，並在市場強烈興趣的推動下，以比預期更嚴格的價格對公司所有未償債務進行了資本重組。因此，我們或許不必在 2026 年將儲存資產貨幣化，而是可以在 2025 年將其貨幣化。您可能會看到我們在接下來的幾個季度中在多戶型住宅領域更加活躍，因為我們正在為該領域的高級過橋貸款、CBS 甚至建築融資承銷約 2.5 億美元的機會。

Finally, we're pleased with the capital options available to us as we fund this growth with where with where the balance sheet is and the success we're having with the series B raise. We have multiple creative avenues to fund growth including a note warehouses and even a rated bond deal to close. We're excited about these opportunities in the coming quarters and pleased with the company's continued avail continued stability and the opportunity to go on offense in this environment.

最後，我們對可用的資本選擇感到滿意，因為我們根據資產負債表的現狀和 B 輪融資的成功為這一增長提供資金。我們有多種創新途徑來資助成長，包括票據倉庫甚至評級債券交易。我們對未來幾季的這些機會感到非常興奮，並對公司繼續保持穩定以及在這種環境下發動攻擊的機會感到高興。

As always, I want to thank the team for their hard work. And now we're like, now we'd like to turn the call over to the operator for questions.

一如既往，我要感謝團隊的辛勤工作。現在我們想將電話轉給接線員以便回答問題。

All right, perfect. Thank you. And just as a reminder, if you would like to ask a question, please press star, followed by the number one.

好的，完美。謝謝。提醒一下，如果您想提問，請按星號，然後按數字 1。

Our first question comes from the line of Kristen from Piper Stanley. Please go ahead.

我們的第一個問題來自 Piper Stanley 的 Kristen。請繼續。

Hi, this is Brack bus on for Christmas Love. Just on the portfolio exposure shifts, continuing multifamily exposure decrease again while life sciences now make up more than a quarter of the portfolio. How do you expect this to progress? And would you expect stability with current exposures or continued increases in life sciences? Thank you.

大家好，這是布拉克巴士為聖誕節獻上的愛。僅在投資組合風險敞口變化上，持續的多戶型風險敞口再次減少，而生命科學現在佔投資組合的四分之一以上。您預計此事將會如何進展？您預計目前的風險敞口會保持穩定還是會持續增加？謝謝。

Yeah, I think that the the life science exposure is is both because we deployed you know, a number of opportunities over the last you know, quarter or two.

是的，我認為生命科學的曝光是因為我們在過去一兩個季度中部署了許多機會。

But also the the paybacks or the capital that's coming back to us has come from the residential sector. So it's kind of like, you know, shrinking the overall pie size and and probably skews it a little bit. But as we sit here today, you know, 1.5 times levered in the portfolio exposure to multi family where it is, I would in residential, I I, like I said, in my prepared remarks, see that increasing over the next couple of quarters. But ultimately, we'd like to see, you know, life sciences be about a quarter to a third of the of the portfolio on a, you know, fully levered basis. So.

但我們獲得的回報或資本也來自住宅領域。所以這有點像，你知道，縮小了整體餅圖的大小，並且可能使其稍微傾斜。但是，正如我們今天坐在這裡一樣，您知道，投資組合中多戶住宅的槓桿率為 1.5 倍，在住宅方面，正如我在準備好的發言中所說的那樣，我認為在接下來的幾個季度中，這一比例會增加。但最終，我們希望看到生命科學在完全槓桿的基礎上佔投資組合的四分之一到三分之一。所以。

Thank you, appreciate it. And then just the last question for me on credit quality LTVS and debt service coverage ratios, they screen attractive to others in the industry. But do you see these, do you see the debt service coverage ratios decreased in the quarter? Can you just dig into that a little deeper and what the key drivers were there?

謝謝，很感激。最後一個問題是關於信用品質長期價值與債務償還比率，它們對於業內其他公司而言具有吸引力。但是您看到這些了嗎，您看到本季的債務償還覆蓋率下降了嗎？您能否更深入地探討一下這個問題以及其中的關鍵驅動因素是什麼？

Yes, of course. So we know you have seen the DC R decrease you know, minimally over the past few quarters, it's kind of twofold. One has to do with you know, just some of the opportunities that we are in such as the repositioning of the LY loan or the one senior loan that so plus 900 that mass discussed that of course, doesn't hold the DS cr right now. You know, it's being released and leased up right now. And also you've seen some slippage, you know, in the multi SFR but not much. But those are the two main components of why I've seen, you know, a little bit of a drop off in the DC R, but we don't in the future, we, we expect that to, to maintain or even, you know, provide even better coverage in the future.

是的當然。因此，我們知道您已經看到 DC R 下降，至少在過去幾個季度中，它有雙重下降。其中一個與您知道的有關，只是我們所處的一些機會，例如重新定位 LY 貸款或一筆高級貸款，加上大眾討論的 900 美元，當然，現在還不能持有 DS cr。您知道，它現在正被釋放和出租。而且您還看到了多 SFR 中存在一些滑動，但不多。但這兩個主要因素導致我看到 DC R 有所下降，但我們預計未來不會發生這種情況，甚至不會提供更好的覆蓋範圍。

Yeah, and just to add the Paul's comments, this is Matt, you know about the, the property balance sheets and, and multi family we're starting to see throughout the CM BS and K deals and even even our own portfolio, you know, stabilizing as you know, the front end of the curve shifts down caps and you know, other hedges get you know, less expensive. And as you know that the, you know, the servicers and including especially the agencies have been mandating cash flow sweeps to to escrow for replacement caps on the floating rate side. So as as those escrow mandates kind of shift and and credit and liquidity become more available within, you know, within multi family in the broader commercial real estate sector as the fed, you know, continues to ease. We expect the, we expect this to only improve the coverage ratios.

是的，只是補充保羅的評論，我是馬特，你知道，關於房地產資產負債表和多戶住宅，我們開始在 CM BS 和 K 交易中看到，甚至我們自己的投資組合，你知道，穩定下來，曲線的前端向下移動上限，你知道，其他對沖變得更便宜。如您所知，服務商尤其是代理機構一直在要求將現金流清掃到浮動利率方面的替代上限託管中。因此，隨著聯準會繼續放鬆政策，這些託管授權發生轉變，在更廣泛的商業房地產領域的多戶住宅中，信貸和流動性變得更加可用。我們預計，我們預計這只會提高覆蓋率。

Thank you for taking my question.

感謝您回答我的問題。

Bye.

再見。

Our next question comes from the line of Jake Ramani from KBW. Please go ahead.

我們的下一個問題來自 KBW 的 Jake Ramani。請繼續。

Thanks very much. Do you have an update as to how book value is trending inorder given the spike in rates?

非常感謝。您是否了解利率飆升情況下帳面價值的趨勢如何？

Sure, Jade. Yeah, there much movement I would say in our CMBS book, it's been, you know, flat to, you know, somewhat positive. It's pretty mute right now. In terms of growth or decline, we, we're sticking to where our current book value is what we discussed at the end of Q3.

當然，傑德。是的，我想說我們的 CMBS 帳簿有很大變動，從持平到略有積極的變化。現在非常安靜。就成長或下降而言，我們堅持當前的帳面價值，即我們在第三季末討論的水平。

Good to hear. Thanks a lot. In terms of the interest rate dynamics, you know, it's catching a lot of people by surprise, everyone thought that lowers rates and then bond market cooperates and we're not seeing that in fact, multifamily starting to see some hiccups here and there for and he may in the 10, you noted an uptick in delinquencies quite a sizable uptick. In fact, and they booked a, a really large reserve third of it related to seniors housing. They did attribute all of the increase to floating rate loans. So just wanted to see, you know, what your thoughts are as to credit performance in multifamily if you're seeing any issues creep up and how you're thinking about the outlook.

很高興聽到。多謝。就利率動態而言，你知道，它讓很多人措手不及，每個人都認為降低利率，然後債券市場會合作，但我們並沒有看到，事實上，多戶家庭開始出現一些小問題，並且可能在 10 年內，你注意到拖欠率出現了相當大的上升。事實上，他們預訂了相當大的部分儲備，其中三分之一與老年人住房有關。他們確實將所有增長歸因於浮動利率貸款。所以只是想看看，如果您發現任何問題出現，您對多戶型信貸表現有何看法，以及您對前景有何看法。

Yeah, it's been a, it's been a roller coaster over the last, you know, quarter or so. You know, the start of the quarter, everyone was feeling pretty good about life or better about life. And then, you know, with the recent, you know, run up in yield on treasuries. It's, it's, you know, we've seen some retrades and transaction market. And a bit of a pause as we, you know, head into the head into the election, I think that's going to clear up some of it. But, you know, overall the, the underlying, you know, dynamics within the multi family sector, I can't speak to senior seniors housing because we're not, you know, that's not really a part of our business, but within multi family, obviously, we're an owner of 30,000 units. And I can tell you that you know, absorption continues to, continues to be really, really promising. As we're, you know, sitting here in this, in the eye of the supply storm today in Q3 and then, you know, Q4, I I think our overall outlook on multi family is, you know, increasingly positive just given the, the way that the rents and OIS and our our levels man held up during these challenging times both in the capital market side, you know, but also in the supply wave, but again, as we've stated over the past, you know, year to, to the extent people have listened, you know, really in 2025 gets great in 2026 is even better on the residential side when landlords should have increasing pricing power. Just due to the, you know, really, you know, lack of deliveries for, for 2026 it's going to be a pretty special time, I think.

是的，在過去一個季度左右的時間裡，情況就像過山車一樣。您知道，本季開始時，每個人對生活都感覺非常良好或更美好。然後，你知道，最近國債殖利率上升。你知道，我們已經看到了一些重新交易和交易市場。在我們進入選舉階段之際，稍作停頓，我認為這將澄清一些問題。但是，你知道，總的來說，在多戶型住宅領域的潛在動態，我不能談論老年人住房，因為這不是我們業務的一部分，但在多戶型住宅領域，顯然我們擁有 30,000 個單位。我可以告訴你，吸收仍然非常非常有前景。我們今天正處於第三季度和第四季度的供應風暴眼中，我認為我們對多戶住宅的整體前景越來越樂觀，因為租金和 OIS 以及我們的水平在這些充滿挑戰的時期保持了穩定，無論是在資本市場方面，還是在供應浪潮中，但正如我們過去一年所說的那樣，就人們所聽到的程度而言，2025 年的情況確實會很好，2026 年定價，因為房東只是由於，你知道，真的，你知道，缺乏交付，我認為 2026 年將是一個非常特殊的時期。

In terms of deals that you're looking at right now, how would you characterize competition in the debt space? Seems like there's, you know, a ton of capital on the sidelines looking to be active but really a dirt of good deals to lot, lots of refi activity and many of those have problems, but the acquisition market being quite muted. How would you characterize the state of play and competition?

就您目前正在考慮的交易而言，您如何描述債務領域的競爭？你知道，似乎有大量場外資本希望活躍起來，但實際上卻有很多好交易，很多再融資活動，其中許多都存在問題，但收購市場卻相當低迷。您如何描述比賽和競爭的現況？

Yeah, I'd say, you know, I think you're alluding to. There's a, there's a number of players out there on debt funds. A lot of capital has been raised, tons of capital, been raised on the debt fund side. And, you know, we're, we are seeing a ton of competition particularly for, for, you know, stabilized deals. But or, or, or, or even in, in the multi family sector, you're seeing a lot of groups bunch up around, you know, so for plus you know, 250 to 300. And so, you know, that's, that's tough to, you know, it's tough to underwrite the opportunities that we're hitting on are mostly repeat sponsors that, you know, have a business plan that we understand as an equity owner. And you know, we're, we're able to kind of differentiate ourselves by our, our relationship. And, and being there throughout the past, you know, few years for these guys and working through issues and, you know, just, you know, differentiating ourselves from a platform perspective based on relationships I think is the way we're winning deals and also on the, on the CN BS side. You know, we're getting increasingly involved in the hr R deal flow with, you know, the bigger banks and, and, and underwriters and, you know, obviously we continue to be a Flex sponsor with, with Freddie Mac and, and enjoy that relationship. So, you know, we like our opportunities to be, be selective and good news is for us, like we don't have to do anything, You know, we you know, we have a stable book value. You have great credit quality that's, you know, out earning our dividend coverage and you know, we can be opportunistic and selective and that's a good place to be in right now.

是的，我想說，你知道，我認為你暗示了這一點。債務基金領域有許多參與者。已經籌集了大量資金，債務基金方面籌集了數以噸計的資金。而且，你知道，我們看到了非常激烈的競爭，特別是為了穩定的交易。但是，或者，或者，甚至在多戶型住宅領域，你會看到很多團體聚集在一起，你知道，有 250 到 300 多個。所以，你知道，這很難，你知道，很難承保我們所抓住的機會，這些機會大多是重複的贊助商，你知道，他們有一個我們作為股權所有者理解的商業計劃。你知道，我們能夠透過我們的關係來區分自己。而且，在過去幾年裡，我們一直致力於解決問題，從基於關係的平台角度來區分自己，我認為這就是我們贏得交易的方式，在 CN BS 方面也是如此。您知道，我們越來越多地參與與大型銀行和承銷商的人力資源交易流程，而且，您知道，我們顯然會繼續成為 Freddie Mac 的 Flex 贊助商，並且享受這種關係。所以，你知道，我們喜歡我們的機會是經過挑選的，好消息是，對我們來說，我們不需要做任何事情，你知道，我們有一個穩定的帳面價值。您的信用品質非常好，您知道，超過了我們的股息覆蓋範圍，而且您知道，我們可以把握機會，精挑細選，這是目前的良好狀態。

Thanks a lot.

多謝。

Thanks Jo.

謝謝喬。

And as a reminder, if you would like to ask a question, please press star and the number one, our next question comes from the line of Steven laws from Raymond James. Please go ahead.

提醒一下，如果您想提問，請按星號和數字 1，我們的下一個問題來自雷蒙德詹姆斯 (Raymond James) 的史蒂文勞斯 (Steven Laws)。請繼續。

Hi morning. Congrats on the last quarter and strong guidance for Q4. Appreciate the details you guys provide. Want to touch base, I guess first Matthew to, to start get idea of how unfunded commitments are funding down. You know, how much is that the number the $29 million shown in the supplement is, is that what was funded off your unfunded commitments or is that just a portion of it? And can you talk about if there's any growth on that unfunded side and I guess not to get too long winded. But, you know, how do you think about raising capital through the series B, issue is, and is that really the capital that's going to fund these commitments? Kind of, how do you handle matching it up? How do you think about that?

早安.恭喜上個季度的成績，並對第四季度做出了強有力的指引。感謝你們提供的詳細資訊。想要聯絡一下，我想先請馬修了解未撥付的承諾資金是如何減少的。您知道，補充文件中顯示的 2900 萬美元是多少嗎？您能否談談未獲資助的方面是否有任何增長？但是，您知道，您如何看待透過 B 輪融資來籌集資金，問題是，這些資金真的是用來資助這些承諾的資金嗎？那您是如何處理配對的呢？您對此有何看法？

Yeah, the, the, the 29 or 30 was, was, it, was, was a life and that's, you know, that, that's a funded commitment that we have, you know, another call it $100 million or $90 million to, to fund. The draw schedule is, is increasingly being, you know, accretive to us both in terms of timing and the activity. So, with the series B, that's matching somewhat dollar for dollar on that asset, the extent we see or, or are able to hit on a number of these other opportunities to go into your question. We, you had great, great meetings and are working on an, a note facility with, with a couple of banks, that, you know, really slices an, a bo structure that particularly on the multi family residential side and even the life sciences side that we could throw loans into and, and, and have a great net interest margin. So we'd like that kind of as a second option to pair with with the series B. And then you know, going, you know, going forward if we have any other deals pop up, then, you know, we recently have been in discussions with the rating agencies S&P Fitch Moody's on, you know, on, on kind of a high yield bond deal given where the the company's balance sheet is and how under levered we are, we think we could take advantage of that as well. So there's a number of you know, creative ways that we can fund growth and you know, this is kind of unique, I think in the sector right now to be able to do that.

是的，29 或 30 歲是一段人生，你知道，這是我們的一項資助承諾，你知道，我們也稱之為 1 億美元或 9000 萬美元來資助。你知道，抽獎時間表在時間和活動方面都越來越有利於我們。因此，對於 B 系列，這與該資產的美元對美元的匹配程度，我們看到的程度，或能夠抓住許多其他機會來回答您的問題。我們舉行了非常棒的會議，正在與幾家銀行合作建立票據融資機制，您知道，這確實是一種銀行結構，特別是在多戶住宅方面，甚至生命科學方面，我們可以將貸款投入其中，並且獲得很高的淨息差。因此，我們希望將其作為與 B 系列配對的第二種選擇。因此，我們可以透過多種創意的方式來資助成長，而且我認為，在目前這個領域，能夠做到這一點是比較獨特的。

Yeah. What is the coupon on that series B.

是的。B 系列的優惠券是什麼？

Nine.

九。

Figure clipping a pretty good, you know, 500 bits to spread as you raise capital there and, and deploy and you know, so for plus 10.

圖形剪輯相當不錯，你知道，當你在那裡籌集資金並部署時，有 500 位元可以傳播，所以加上 10。

So that's really creative. What is the cap, I mean, is there a limit on how much series B you can raise or what is the, the authorization there?

這確實很有創意。上限是多少，我的意思是，您可以籌集的 B 輪融資金額是否有限制，或者那裡的授權是多少？

Yeah, so we I think the shelf is $400 million total and we're, we've raised about 100 of that.

是的，我認為這個架子總共價值 4 億美元，我們已經籌集了其中的 1 億美元。

Great switching gears a little bit, and you could touch on this a little bit. But on the multifamily side, you mentioned kind of seeing an increase in pipeline or maybe rosy investments. Can you talk about what's in the pipeline? Are you looking at preferred equity investments? You're looking at Mems, you're looking at B pieces out of deals. Is it kind of a little bit of everything? I just curious, kind of where you're seeing the best opportunities as you look to, to, you know, get more active on that, that Reys investment pipeline.

很好的轉換話題，你可以稍微觸及一下這一點。但在多戶型住宅方面，您提到看到了管道的增加或可能是樂觀的投資。能談談目前正在籌劃什麼嗎？您正在考慮優先股投資嗎？您正在查看 Mems，您正在查看交易中的 B 件。是不是什麼都有一點？我只是好奇，當您尋求在 Reys 投資管道上更加積極地採取行動時，您認為最好的機會在哪裡。

Yeah, you bet. So, we're working with a repeat sponsor on portfolio of, it'd be, it'd be a half, half purchase, half refinancing of the, of the existing, you know, kind of garden style portfolio in the, in the southwest and you know, Arizona and Texas and in Georgia, that's about $100 million. And then, you know, on the construction side, we're looking at a 75-million-dollar financing there and then the remainder is, is, you know, Freddie K. So, it's kind of, you know, 175 of senior loans, CNBs and, and construction.

是的，確實如此。所以，我們正在與一位重複贊助商合作，對投資組合進行一半購買，一半再融資，現有的花園式投資組合位於西南部，包括亞利桑那州、德克薩斯州和喬治亞州，總額約為 1 億美元。然後，你知道，在建設方面，我們正在考慮 7500 萬美元的融資，剩餘的資金是 Freddie K。

Fantastic. Appreciate the color this morning and thanks for your comments.

極好的。欣賞今天早上的色彩並感謝您的評論。

Thanks, Steven.

謝謝，史蒂文。

That is all the questions that we have in the queue. So I would like to turn it back over to management for closing.

這就是我們要問的所有問題。因此我想將其交還給管理層以完成結案。

Remarks.

評論。

Yeah, not all because everything else. But, oh, sorry, go.

是的，並非全部，因為其他一切。但是，哦，抱歉，走吧。

Ahead.

前方。

No, I appreciate everyone's time this morning and I look forward to talking to you again next quarter.

不，我感謝大家今天上午的時間，並期待下個季度再次與你們交談。

That concludes today's conference. Have a pleasant day. Everyone.

今天的會議到此結束。祝您有個愉快的一天。每個人。