Starwood Property Trust Inc (STWD) 2025 Q1 法說會逐字稿

Greetings, and welcome to the Starwood Property Trust first-quarter 2025 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加喜達屋地產信託 2025 年第一季財報電話會議。（操作員指示）提醒一下，本次會議正在錄音。

It is now my pleasure to introduce your host, Zach Tanenbaum, Director of Investor Relations. Thank you, sir. You may begin.

現在我很高興介紹您的主持人、投資者關係總監 Zach Tanenbaum。謝謝您，先生。你可以開始了。

Thank you, operator. Good morning, and welcome to Starwood Property Trust earnings call. This morning, we filed our 10-Q and issued a press release with a presentation of our results, which are both available on our website and have been filed with the SEC. Before the call begins, I would like to remind everyone that certain statements made in the course of this call are forward-looking statements which do not guarantee future events or performance. Please refer to our 10-Q and press release for cautionary factors related to these statements.

謝謝您，接線生。早安，歡迎參加喜達屋地產信託收益電話會議。今天早上，我們提交了 10-Q 報表並發布了一份新聞稿，介紹了我們的業績，這些都可以在我們的網站上查閱，並且已經提交給美國證券交易委員會 (SEC)。在電話會議開始之前，我想提醒大家，本次電話會議過程中所做的某些陳述是前瞻性陳述，不保證未來事件或表現。有關這些聲明的警示因素，請參閱我們的 10-Q 和新聞稿。

Additionally, certain non-GAAP financial measures will be discussed on this call. For a reconciliation of these non-GAAP financial measures to the most comparable measures prepared in accordance with GAAP, please refer to our press release filed this morning. Joining me on the call today are Barry Sternlicht, the company's Chairman and Chief Executive Officer; Jeff DiModica, the company's President; and Rina Paniry, the company's Chief Financial Officer.

此外，本次電話會議也將討論某些非公認會計準則財務指標。有關這些非 GAAP 財務指標與按照 GAAP 編制的最具可比性的指標的對賬，請參閱我們今天早上發布的新聞稿。今天與我一起參加電話會議的還有公司董事長兼執行長 Barry Sternlicht、公司總裁 Jeff DiModica 和公司財務長 Rina Paniry。

With that, I'm now going to turn the call over to Rina.

說完這些，我現在要把電話轉給麗娜 (Rina)。

Thank you, Zach, and good morning, everyone. This quarter, we reported distributable earnings or DE of $156 million or $0.45 per share. GAAP net income was $112 million or $0.33 per share. Across businesses, we committed $2.3 billion towards new investments, our highest quarter in nearly three years with infrastructure lending committing its highest level of capital in a single quarter since we acquired the business from GE in 2018.

謝謝你，扎克，大家早安。本季度，我們報告的可分配收益或 DE 為 1.56 億美元或每股 0.45 美元。GAAP 淨收入為 1.12 億美元，即每股 0.33 美元。我們在各項業務上承諾了 23 億美元的新投資，這是近三年來最高的一個季度，其中基礎設施貸款承諾的資本水平創下了自 2018 年我們從通用電氣收購該業務以來的單季度最高水平。

Our overall strong investing pace continued after quarter end with $1.3 billion already closed. I will begin my segment discussion this morning with Commercial and Residential Lending, which contributed DE of $179 million to the quarter or $0.51 per share. In commercial lending, we grew our loan book by $859 million, which will help drive our long-term earnings potential. We originated $1.4 billion of loans, of which $886 million was funded and funded another $250 million of pre-existing loan commitments.

我們整體強勁的投資步伐在季度末持續保持，目前已完成 13 億美元的投資。今天上午，我將從商業和住宅貸款開始我的分部討論，該業務為本季度貢獻了 1.79 億美元的 DE，即每股 0.51 美元。在商業貸款方面，我們的貸款增加了 8.59 億美元，這將有助於提高我們的長期獲利潛力。我們發放了 14 億美元的貸款，其中 8.86 億美元已獲得資金支持，另外 2.5 億美元的現有貸款承諾已獲得資金支持。

Many of our originations were back ended to the last half of the quarter, so the full earnings potential will not be realized until Q2. Repayments totaled $363 million, which is higher than we expected, leaving the book at $14.5 billion at quarter end. The growth in our portfolio also led to a slight decrease in our weighted average risk rating, from 3.0 last quarter to 2.9. We began executing on the resolution plan that we discussed on our last call and have resolved $230 million across three assets so far this year at pricing at or above our GAAP basis.

我們的許多發起都推遲到本季的後半段，因此全部獲利潛力要到第二季才能實現。還款總額為 3.63 億美元，高於我們的預期，季末的帳面金額為 145 億美元。我們投資組合的成長也導致我們的加權平均風險評級略有下降，從上季的3.0降至2.9。我們已開始執行上次電話會議上討論的解決方案，今年迄今已以等於或高於我們GAAP基準的價格，解決了三項資產的2.3億美元問題。

The first is a $38 million nonaccrual loan secured by a hospitality asset in California. During the quarter, we received $39 million in full repayment of the loan, resulting in a $1 million GAAP and DE gain. The second is a $55 million apartment building in Texas that we foreclosed on in 2024. Subsequent to quarter end, we sold the asset on our undepreciated GAAP basis which is the same as our DE basis for this asset because we never took any GAAP reserves.

第一筆是3,800萬美元的非應計貸款，由加州的一家旅館資產擔保。在本季度，我們收到了 3,900 萬美元的全額貸款償還款，從而獲得了 100 萬美元的 GAAP 和 DE 收益。第二筆是位於德克薩斯州的一棟價值 5500 萬美元的公寓大樓，我們於 2024 年取消了該樓的贖回權。季度末之後，我們按照未折舊的 GAAP 基礎出售了該資產，這與該資產的 DE 基礎相同，因為我們從未提取任何 GAAP 儲備金。

The third is a $137 million office building in Texas that we foreclosed on in 2022. Subsequent to quarter end, we sold this asset for a $5 million premium to our GAAP basis, reflecting the adequacy of the GAAP reserve we recorded in 2023. The corresponding DE loss of $44 million will be recognized in the second quarter. To clarify, we do not consider an asset to be resolved until it has legally exited our balance sheet, so the resolutions I just mentioned excludes this quarter's foreclosure of a $45 million previously five rated nonaccrual loan on a multifamily property in Georgia.

第三棟是位於德州的一棟價值 1.37 億美元的辦公大樓，我們於 2022 年取消了該樓的贖回權。季度末之後，我們以高於 GAAP 基礎 500 萬美元的價格出售了這項資產，這反映了我們在 2023 年記錄的 GAAP 儲備的充足性。相應的 4,400 萬美元 DE 損失將在第二季確認。需要澄清的是，我們認為一項資產只有在合法退出我們的資產負債表後才能得到解決，因此我剛才提到的解決方案不包括本季度對佐治亞州一處多戶住宅的 4500 萬美元先前五級非應計貸款的止贖。

We obtained a third-party appraisal for the asset which indicated a value above or at our basis, so no reserve was recorded. Our CECL reserve decreased by $26 million in the quarter to a balance of $456 million, reflecting the macroeconomic forecast. Together with our previously taken REO impairments of $198 million, these reserves represent 4.2% of our lending and REO portfolios and translate to $1.93 per share of book value, which is already reflected in today's undepreciated book value of $19.76,

我們獲得了該資產的第三方評估，其價值高於或等於我們的基準，因此沒有記錄儲備金。我們的 CECL 儲備金在本季減少了 2,600 萬美元，至 4.56 億美元的餘額，反映了宏觀經濟預測。加上我們先前提取的 1.98 億美元 REO 減值，這些準備金占我們貸款和 REO 投資組合的 4.2%，相當於每股帳面價值 1.93 美元，這已經反映在今天的未折舊帳面價值 19.76 美元中。

Next, I will turn to residential lending, where our on-balance sheet loan portfolio ended the quarter at $2.4 billion. The loans in this portfolio continued to repay at par with $55 million of repayments this quarter. Our retained RMBS portfolio ended the quarter relatively flat at $422 million with an $8 million positive mark-to-market offset by repayments. In our Property segment, we recognized $16 million of DE or $0.05 per share in the quarter, driven by our Florida affordable multifamily portfolio. Subsequent to quarter end, HUD released the new maximum rent levels which were set 8.4% higher than last year.

接下來，我將談談住宅貸款，本季末我們的表內貸款組合為 24 億美元。本季度，該投資組合中的貸款繼續以平價償還，償還金額為 5,500 萬美元。我們保留的 RMBS 投資組合在本季結束時相對持平於 4.22 億美元，其中 800 萬美元的正市價被償還金額抵銷。在我們的房地產部門，本季我們確認了 1,600 萬美元的 DE 或每股 0.05 美元，這得益於我們在佛羅裡達州的經濟適用型多戶型投資組合。季度末之後，HUD 發布了新的最高租金水平，比去年高出 8.4%。

Certain properties were in geographies where the rent increases were once again capped by HUD, which resulted in 6.7% of incremental rent growth being deferred to next year. This would be in addition to any increase determined by the HUD formula in 2026. As a reminder, the majority of these rent increases will be implemented in June so the impact to earnings will not be fully reflected until the third quarter. Turning to investing and servicing. This segment contributed DE of $50 million or $0.14 per share to the quarter.

某些房產位於租金上漲幅度再次受到住房和城市發展部 (HUD) 限制的地區，這導致 6.7% 的增量租金增長被推遲到明年。這將是對 2026 年 HUD 公式所確定的任何增長的補充。提醒一下，大部分租金上漲將在 6 月實施，因此對收益的影響要到第三季才能完全反映出來。轉向投資和服務。該部門為本季度貢獻了 5000 萬美元或每股 0.14 美元的 DE。

Our conduit, Starwood Mortgage Capital completed 4 securitizations totaling $268 million at profit margins that were at or above historic levels. In our special servicer, we continue to be ranked the number one conduit special servicer, a ranking we have maintained over the last 2.5 years. Our active servicing portfolio ended the quarter at $9.6 billion, with $800 million of new transfers, which were again dominated by office properties. Our named servicing portfolio ended the quarter at $107 billion.

我們的通路喜達屋抵押貸款資本公司完成了 4 筆證券化，總額達 2.68 億美元，利潤率達到或超過了歷史水準。在我們的特殊服務商中，我們繼續被評為第一大管道特殊服務商，這一排名我們在過去 2.5 年中一直保持著。本季末，我們的活躍服務組合價值為 96 億美元，其中新轉移金額為 8 億美元，其中再次以辦公大樓為主。本季末，我們的指定服務組合價值為 1,070 億美元。

In our CMBS portfolio, two large loan payoffs resulted in principal collections of $62 million. We also added new purchases of $12 million. Concluding my business segment discussion is our Infrastructure Lending segment, which contributed DE of $20 million or $0.06 per share to the quarter. As I mentioned earlier, we committed to a record $677 million of loans, of which $601 million was funded. Repayments totaled $436 million bringing the portfolio to a record $2.8 billion at quarter end.

在我們的 CMBS 投資組合中，兩筆大筆貸款的償還帶來了 6,200 萬美元的本金回收。我們也增加了1200萬美元的新採購。我所討論的業務部門最後是我們的基礎設施貸款部門，該部門為本季度貢獻了 2000 萬美元或每股 0.06 美元的 DE。正如我之前提到的，我們承諾提供創紀錄的 6.77 億美元貸款，其中 6.01 億美元已獲得資金支持。償還總額達到 4.36 億美元，使得本季末的投資組合達到創紀錄的 28 億美元。

As with the growth in our commercial loan book, growth in this portfolio will likewise help drive our overall long-term earnings potential. Subsequent to quarter end, we completed our fifth infrastructure CLO for $500 million with a record low cost of funds and a weighted average coupon of SOFR plus 173 This brings our term non-mark-to-market CLO financing to 58% of infrastructure debt and our non-mark-to-market financing for the entire company to 84%.

與我們的商業貸款帳簿的成長一樣，該投資組合的成長同樣將有助於推動我們的整體長期獲利潛力。季度末之後，我們完成了第五筆基礎設施 CLO，金額為 5 億美元，資金成本創歷史新低，加權平均票面利率為 SOFR 加 173，這使我們的定期非按市價計價 CLO 融資占基礎設施債務的 58%，而我們整個公司的非按市價計價融資達到 84%。

And finally, this morning, I will address our liquidity and capitalization. Subsequent to quarter end, we completed the $500 million issuance of our 5.5 year 6.5% senior unsecured sustainability notes, which we swapped to a floating rate of SOFR plus 261. In addition, we repaid the remaining $250 million of our $500 million March 2025 high-yield notes at maturity. Our corporate debt activity over the past two quarters increased our weighted average corporate debt maturity from 2.2 to 3.7 years. and leaves us with no corporate debt maturities until July 2026, when $400 million matures.

最後，今天上午我將討論我們的流動性和資本化。季度末之後，我們完成了 5 億美元 5.5 年期 6.5% 優先無擔保可持續發展票據的發行，並將其轉換為 SOFR 加 261 的浮動利率。此外，我們在到期時償還了 2025 年 3 月 5 億美元高收益票據中剩餘的 2.5 億美元。過去兩個季度，我們的企業債務活動使我們的加權平均企業債務到期日從 2.2 年增加到 3.7 年，直到 2026 年 7 月（4 億美元到期）之前，我們都沒有企業債務到期。

Our current liquidity stands at $1.5 billion, which does not include liquidity that could be generated from cash out refinancings, sales of assets in our Property segment, direct leveraging of our $4.9 billion of unencumbered assets, issuing high-yield backed by these unencumbered assets or issuing term loan B. We also continue to have significant credit capacity across our business lines with $9.5 billion of availability. Our adjusted debt to undepreciated equity ratio ended the quarter at 2.25 times.

我們目前的流動資金為 15 億美元，其中不包括透過現金再融資、出售我們房地產部門的資產、直接利用我們 49 億美元無抵押資產、發行由這些無抵押資產支持的高收益債券或發行定期貸款 B 產生的流動資金。我們的各業務線繼續擁有強大的信貸能力，可用信貸額度為 95 億美元。本季末，我們調整後的負債與未折舊股權比率為 2.25 倍。

With that, I'll turn the call over to Jeff.

說完這些，我會把電話轉給傑夫。

Thanks, Rina. We informed you last quarter that we intended to raise incremental capital to increase our lending pace in what is one of the best origination environments we've seen in some time. As Rina said, we originated $2.3 billion in new investments in the first quarter and are on pace for a strong second quarter with more than $1 billion already closed in the first month. The opportunity set should be large. In CRE, record origination volume from 2021 and 2022 needs to be refinanced in the coming quarters.

謝謝，麗娜。我們上個季度曾告知過您，我們打算籌集增量資本來加快我們的貸款速度，這是我們一段時間以來見過的最佳發起環境之一。正如 Rina 所說，我們在第一季獲得了 23 億美元的新投資，並且預計在第二季度取得強勁成長，第一個月就已經完成了超過 10 億美元的投資。機會集應該很大。在商業房地產領域，2021 年和 2022 年創紀錄的發起量需要在未來幾季進行再融資。

Real estate transaction volumes have picked up. The CMBS single asset, single borrower market has pulled back given the steepening of the credit curve. Many lenders are capital constrained and banks earn higher ROEs lending to us than competing with us on their own originations. The year started strong and that strength continues today. I just got off a call with the Co-Head of US debt for a major brokerage who told me they have 50% more debt and equity deals in the market today than the same period last year.

房地產交易量回升。由於信用曲線趨陡，CMBS 單一資產、單一借款人市場已回落。許多貸款機構都受到資本限制，銀行向我們提供貸款所獲得的淨資產收益率要高於與我們在自身貸款上競爭所獲得的淨資產收益率。今年開局強勁，並且這種強勁勢頭一直延續到今天。我剛與一家大型經紀公司的美國債務聯席主管通了電話，他告訴我，目前市場上的債務和股權交易比去年同期增加了 50%。

These factors create an opportunity for well-capitalized lenders with consistent access to capital markets to prosper. As we have in the past, we have again proven our unique ability to raise both debt and equity capital accretively in this cycle. In March, we were 4.5x oversubscribed on the issuance of $500 million in sustainability bonds that Rina mentioned, which we swapped to SOFR plus [160] basis points off the record tight spreads that we achieved just four months earlier in December 2024.

這些因素為資金充足、能持續進入資本市場的貸款機構創造了繁榮的機會。正如我們過去所做的那樣，我們再次證明了我們在這個週期中增加債務和股權資本的獨特能力。今年 3 月份，我們發行了 Rina 提到的 5 億美元永續發展債券，獲得了 4.5 倍的超額認購，我們將其轉換為 SOFR，再加上 [160] 個基點，而四個月前，即 2024 年 12 月，我們實現了創紀錄的緊密利差。

In the last year, we issued or repriced $4 billion in debt and equity instruments. $2.6 billion of that was completed in just the three months from December to March, where there was very little capital markets activity. These activities leave us today with $1.5 billion of capital to invest after closing the pipeline I just mentioned. We also enjoyed historically low leverage at 2.25 times and significant unencumbered assets, which can be levered to continue at our accelerated investing pace as we move into the second half of 2025.

去年，我們發行或重新定價了 40 億美元的債務和股權工具。其中 26 億美元是在 12 月至 3 月的三個月內完成的，而這三個月的資本市場活動很少。這些活動使我們在關閉我剛才提到的管道後，今天擁有 15 億美元的資金可供投資。我們還享有 2.25 倍的歷史低槓桿率和大量無抵押資產，隨著我們進入 2025 年下半年，我們可以利用這些資產繼續加快投資步伐。

We expect our balance sheet to grow materially this year, allowing us to maintain a dividend that we have paid for [45] straight quarters. We uniquely have approximately $4.50 per share in harvestable gains on our owned real estate portfolio.

我們預計今年我們的資產負債表將大幅成長，使我們能夠維持連續 [45] 個季度支付的股息。我們擁有的房地產投資組合每股可獲得約 4.50 美元的收益。

We are the only 2.0 commercial mortgage REIT that has never cut its dividend, and we believe our diversified low leverage business model provides us with the unique ability to ride out market disruption. We're seeing green shoots of liquidity and optimism return to our sector.

我們是唯一一家從未削減股息的 2.0 商業抵押房地產投資信託基金，我們相信，我們多元化的低槓桿業務模式為我們提供了度過市場動蕩的獨特能力。我們看到流動性和樂觀情緒正在重返我們的行業。

The market's expectation of where the benchmark rate SOFR would be in 2026 and 2027 was 100 basis points higher at this time last year and is now back in the low for 2020 and beyond. This is good for legacy positions as they will have an easier backdrop and more debt service coverage to enable our borrowers to refinance with these lower benchmark rates.

去年此時，市場對 2026 年和 2027 年基準利率 SOFR 的預期高出 100 個基點，而現在，2020 年及以後的預期又回到了低點。這對遺留職位來說是件好事，因為它們將擁有更簡單的背景和更多的債務償還能力，從而使我們的借款人能夠以這些較低的基準利率進行再融資。

Stocks have caught back their liberation day losses, but the credit curve has steepened as insurance capital now has lower risk-based capital charges on higher-rated bond classes. Their move to higher-rated credit assets with lower risk-based capital charges has created more opportunity for us in subordinate positions of the capital structure where we have invested over $100 billion over the last 16 years.

股市已經收復了解放日的損失，但由於保險資本現在對高評級債券類別的風險資本要求較低，信貸曲線已經變陡。他們轉向評級較高、風險資本要求較低的信貸資產，這為我們在資本結構的從屬地位創造了更多機會，在過去 16 年裡，我們在該地位上投資了超過 1000 億美元。

As I just said, banks get better capital treatment lending to us than direct lending, and we continue to see borrowing spreads to us decline, allowing us to maintain our returns with likely less competition. This, along with volatility in single asset, single borrower securitizations just created a bigger opportunity for us in 2025, and we expect to continue our elevated investment pace in all of our business lines.

正如我剛才所說，銀行向我們貸款比直接貸款獲得了更好的資本處理，而且我們看到借款利差繼續下降，這使我們能夠在競爭可能較少的情況下保持回報。這一點，加上單一資產、單一借款人證券化的波動，為我們在 2025 年創造了更大的機會，我們預計將繼續在所有業務線上加快投資步伐。

In CRE lending, we originated $1.4 billion in the first quarter. We committed more equity in Q1 than we did in all of 2024. We've been leaning in on three investment themes this year. and expect to continue to data centers, Europe and multifamily. When fully funded 70% of the equity in our Q1 originations was in data centers with long-term leases to investment-grade tenants.

在商業房地產貸款方面，我們第一季發放了 14 億美元。我們在第一季投入的股權比 2024 年全年投入的股權還要多。我們今年一直關註三個投資主題，並預計將繼續關注資料中心、歐洲和多戶住宅。當資金充足時，我們第一季發起的 70% 股權是用於長期租賃給投資等級租戶的資料中心。

Our second largest loan is on a broadly diversified multifamily asset in well-leased German markets with a 61% origination LTV. 30% our lending book is now in markets outside the US, where we benefit from a large, dedicated team and a long history of operating in these markets.

我們的第二大貸款是針對租賃狀況良好的德國市場的多元化多戶型資產，其發起 LTV 為 61%。我們 30% 的貸款目前在美國以外的市場，我們受益於一支龐大、敬業的團隊和在這些市場的長期營運歷史。

Additionally, we have a large pipeline closed or in closing in Q2, the vast majority of which are on multifamily assets in the United States. At quarter end, our CRE loan portfolio is up $859 million, as Rina mentioned, the $14.5 billion, and we expect it will reach a record high by year-end, which should support our efforts in 2026. As we look to legacy credit, I will remind you that we have over $650 million in reserves for our CRE lending book reflected on our balance sheet today. Resolutions, which we expect to accelerate the next two years should lead to lower reserves in the future and higher earnings as we recycle that capital.

此外，我們在第二季關閉或正在關閉大量管道，其中絕大多數位於美國的多戶型資產。截至本季末，我們的 CRE 貸款組合增加了 8.59 億美元，正如 Rina 所提到的那樣，達到了 145 億美元，我們預計到年底它將達到歷史新高，這應該會支持我們在 2026 年的努力。當我們檢視遺留信貸時，我要提醒您，我們今天的資產負債表上反映出我們的 CRE 貸款帳簿有超過 6.5 億美元的儲備金。我們預計未來兩年內決議的加速實施將會導致未來儲備金的減少以及隨著資本循環利用收益的增加。

As Rina said, we have resolved $230 million of assets so far this year at values in line or better than our GAAP reserve levels and expect that trend to continue. In the quarter, our US office exposure declined to just 9%. We lowered our CECL reserve for the first time in four years and with no new additions to our 4 or 5 rated categories in the quarter. We moved our only life science deal a 5-rated $73 million loan on a renovated but empty asset in Boston Seaport District to nonaccrual in the quarter, and we'll update you on progress there in the coming quarters.

正如 Rina 所說，今年迄今為止，我們已經處置了價值 2.3 億美元的資產，其價值與我們的 GAAP 儲備水平一致或更高，並且預計這一趨勢將繼續下去。本季度，我們在美國辦事處的曝光度下降至僅 9%。我們四年來首次降低了 CECL 儲備，並且本季我們的 4 或 5 個評級類別沒有新增內容。我們在本季度將我們唯一的生命科學交易（波士頓海港區一處經過翻新但空置的資產的 5 級 7300 萬美元貸款）轉為不計提，我們將在未來幾個季度向您通報進展情況。

Moving to Energy Infrastructure lending. You've all seen oil and gas prices move lower this quarter, but our earnings are not dependent on these commodity moves. Our loan book is split between assets that produce power and midstream assets that store and transmit the commodities, but it's not levered to the commodity price itself. We continue to enjoy excellent returns at some of the lowest lending LTVs in our portfolio in this business today. In the quarter, we deployed a record $677 million at above trend returns, allowing our portfolio to increase again to nearly $3 billion.

轉向能源基礎設施貸款。大家都看到本季石油和天然氣價格下跌，但我們的收益並不依賴這些大宗商品的走勢。我們的貸款分為生產電力的資產和儲存和傳輸商品的中游資產，但它並不與商品價格本身掛鉤。目前，我們在該業務領域中的一些貸款 LTV 仍處於最低水平，並且繼續享受著極好的回報。本季度，我們部署了創紀錄的 6.77 億美元，回報率高於趨勢水平，使我們的投資組合再次增加到近 30 億美元。

Although we have ample ability to finance the growth of this business on bank lines, we issued our fifth energy infrastructure CLO in the quarter at the lowest cost of funds to date. I'll finish today with the Property segment, where Rina mentioned we would receive 8.4% rent increases in Woodstar this year and will defer 6.7% to next year, ensuring continued property appreciation. We have spoken many times about the embedded value for SPT shareholders of the Woodstar portfolio. We have over $1.5 billion of harvestable DE gains on our 59 owned properties.

儘管我們有足夠的能力透過銀行融資來支持該業務的成長，但我們在本季以迄今為止最低的資金成本發行了第五筆能源基礎設施 CLO。我今天的演講將以房地產部分結束，其中 Rina 提到我們今年 Woodstar 的租金將上漲 8.4%，並將 6.7% 推遲到明年，以確保房地產持續升值。我們已經多次談到 Woodstar 投資組合對 SPT 股東的內在價值。我們擁有的 59 處房產擁有超過 15 億美元的可收穫 DE 收益。

Contractual rents have continued to increase since we purchased the portfolio in 2015 through 2018, and we expect this to continue, which will add significant value to our portfolio in the coming years. We have told you that there is also significant upside as we are able to roll these properties to market rate from affordable once they reach the end of their affordability restrictions, which is typically 25 to 30 years after construction.

自從我們在 2015 年購買該投資組合以來，到 2018 年，合約租金一直在持續上漲，我們預計這種趨勢將持續下去，這將在未來幾年為我們的投資組合增加顯著的價值。我們已經告訴過您，這也有很大的上升空間，因為一旦這些房產達到了其可負擔性限制的期限，我們就可以將其從可負擔價格調整到市場價格，這通常是在建成後的 25 至 30 年。

We told you that these restrictions started to burn off last year, and in eight years, over one-third of the rent restrictions will roll off, allowing us to either increase rents to market rent or stay in the affordable program and continue to benefit from abated real estate taxes. In short, you may be under the assumption that multifamily rents are flat or falling nationally, but this has not been the case in the affordable space. and the continued lack of supply and income growth should lead to even more upside for shareholders going forward.

我們告訴過你，這些限制從去年開始逐漸取消，八年後，超過三分之一的租金限制將會取消，這樣我們就可以提高租金以達到市場租金水平，或者繼續留在可負擔得起的計劃中，並繼續受益於減免的房地產稅。簡而言之，您可能認為全國多戶型住宅的租金持平或下降，但在經濟適用房領域並非如此。持續的供應不足和收入成長應該會為股東帶來更大的上漲空間。

With that, I will turn the call to my friend, Barry, who is right off the red eye, so take it easy on him two hours to sleep.

這樣，我就會把電話轉給我的朋友巴里，他剛從紅眼航班上下來，所以讓他輕鬆睡兩個小時。

Good morning, everyone. Thanks, Zachary and Jeff. I guess for us, let's just start with the economy. The economy is going to weaken. I just was talking to CEOs of Fortune 100 companies in the past few days.

大家早安。謝謝，扎卡里和傑夫。我想，對我們來說，我們就從經濟開始吧。經濟將會變得疲軟。我前幾天剛和財富 100 強公司的執行長進行了交談。

maturing from the West Coast, and there will be issues on shelves, and there will be prices for consumers to absorb. And you kind of already were in a recession, you kind of saw the lower half of the country in the top 10%, 15% of the country was carrying spending and consumption. And now we'll see how the wealth effect actually plays through -- actually, the markets have recovered shockingly to free liberation day highs, but that doesn't really feel right. And things like travel are clearly off, I guess it was Expedia that reported. And then Airbnb, and we've seen the travel numbers.

從西海岸開始成熟，屆時將會有期刊上架，消費者也將承擔相應的價格。而且你已經陷入了經濟衰退，你可以看到全國前 10% 的下半部、前 15% 的人口正在進行支出和消費。現在我們將看到財富效應實際上是如何發揮作用的——實際上，市場已經令人震驚地恢復到自由解放日的高點，但這感覺並不對。而像旅行這樣的事情顯然是不正常的，我猜是 Expedia 報告的。然後是 Airbnb，我們看到了旅行人數。

The airlines have talked about their stress as international travel to United States dissipates. . But it will go somewhere. So Canadians will go to Europe or they'll go to the Caribbean. I mean I come here, we're the number one tourist in the United States.

隨著前往美國的國際航班減少，各航空公司都面臨壓力。。但它總會到達某個地方。所以加拿大人會去歐洲或加勒比海地區。我的意思是，我來這裡，我們是美國第一大遊客。

And the Europeans will probably stay in Europe in frequent Greece in other locations rather than come to visit us. So the economy will weaken and that means power sooner or later, will lower rates. And for sure, when he's out in May of '26, there's no chance rates will be higher. -- because the selection will depend on somebody who accommodates a lower rate environment. That is all good for the property segment.

歐洲人可能會經常留在希臘的歐洲其他地方，而不是來拜訪我們。因此經濟將會減弱，這意味著權力遲早會降低利率。可以肯定的是，當他在 2026 年 5 月離職時，利率不可能再提高——因為選擇將取決於能否適應較低利率環境的人。這對房地產行業來說都是好事。

And so I feel like we're through the worst of it, and it's getting to get better from here and transaction volumes, which kind of have slowed again given the lot of spreads and uncertainty in the markets and people worrying about additional where the next deal is going to go. I expect that will reaccelerate.

所以我覺得我們已經度過了最糟糕的時期，情況正在好轉，交易量也再次放緩，因為市場上存在很大的利差和不確定性，人們擔心下一筆交易會如何進行。我預計這一進程將會再次加速。

However, we've been in the market now open for business for the past year. We probably never entered this period with a better balance sheet, a better team more opportunities in all of our sectors to return -- to achieve excess returns. And I think we're executing really well. So for us, I think the story of the economy is weakening. Obviously, now the forward curve is four cuts.

然而，我們在過去的一年裡一直在這個市場上開展業務。我們可能從未有過如此好的資產負債表、如此好的團隊以及在所有領域都擁有更多的機會來實現超額回報。我認為我們的執行情況非常好。因此，對我們來說，我認為經濟狀況正在惡化。顯然，現在遠期曲線已經是四次切割了。

And so for even three would be fine down to the that at the end of the day, real estate is a yield to be product and the largest asset class in the world. We will come back into favor, and we'll probably have more people on this phone call in the future.

因此，即使三者都很好，歸根結底，房地產是一種收益產品，也是世界上最大的資產類別。我們將重新受到青睞，並且將來可能會有更多的人參與這個電話會議。

But it is our opportunity to continue our -- to our North Star, which is to achieve investment grade and continue to do that. To do that, we have to grow all of our investment sleeves and add additional ones. We've looked at a resi originator this quarter. We've been on a $2 billion regional bank portfolio but priced inside of our hurdles. We've looked at other companies in our sector, including the public opportunities that might exist, and we're turning over a lot of stones to find the relief under stone (inaudible)?

但這是我們繼續實現「北極星」目標的機會，即達到投資級並繼續這樣做。為了實現這一目標，我們必須擴大所有的投資範圍並增加額外的投資。本季我們關注了一家住宅發起人。我們的地區銀行投資組合價值 20 億美元，但價格在我們的負擔範圍內。我們考察了我們行業內的其他公司，包括可能的上市機會，我們正在翻開許多資料，尋找潛在的解決方案（聽不清楚）？

So looking for the pearls under the sea. It's interesting that we -- for our Board, we just did a presentation just a week or so ago, and we are the only 2.0 mortgage REIT that is trading above its IPO price. As Jeff said, we're the only one who's never cut their dividend. We believe our dividend is solid. And we have a very unusual portfolio.

所以尋找海底的珍珠。有趣的是，我們董事會大約一周前剛做了一次演示，我們是唯一一家交易價格高於 IPO 價格的 2.0 抵押貸款房地產投資信託基金。正如傑夫所說，我們是唯一一家從未削減股利的公司。我們相信我們的股利是穩健的。我們擁有非常不尋常的投資組合。

We own Starwood Capital owns over 110,000 apartments, including 43,000 affordable assets. and the portfolio of this company is the shining star of the whole bunch.

我們擁有喜達屋資本，擁有超過 110,000 套公寓，其中包括 43,000 套經濟適用房。該公司的投資組合是整個投資組合中的耀眼明星。

And when you have 15% rent increases in one of our geographies -- there's nothing -- that's the highest I've seen in anything market rate or any asset (inaudible) frankly. And all the gift that keeps on giving. When we bought those assets, my theory was I want to own stuff and start Property Trust that we could hold forever and increase the duration of our portfolio essentially that they give us cash flow forever.

當我們某個地區的租金上漲 15% 時——沒什麼——坦率地說，這是我見過的任何市場利率或任何資產的最高水平（聽不清楚）。以及所有不斷給予的禮物。當我們購買這些資產時，我的想法是，我想擁有一些東西並啟動我們可以永遠持有的房地產信託，並增加我們投資組合的持續時間，本質上它們為我們提供永遠的現金流。

And being affordable, they're always full, being in growth markets that are dependent and rent growth is dependent on income growth. We picked wisely, and we vastly outperformed our expectations being that the rents are so low compared to market, you actually don't have to worry about people moving in and out as much people stay -- our only job is to manage them well and meet customers' expectations and keep them full, which the team has done admirably. So that is a real hidden source of value for the company as it stands today.

由於價格實惠，這些房子總是滿員，它們處於依賴成長的市場，而租金成長依賴於收入成長。我們做出了明智的選擇，而且我們的業績遠遠超出了預期，因為與市場相比，租金非常低，你實際上不必擔心人們搬進搬出，因為人們會留下來——我們唯一的工作就是管理好它們，滿足客戶的期望，讓它們保持滿員，而團隊做得非常出色。因此，這對今天的公司來說是一個真正的隱藏價值來源。

And we want to increase our real estate book and looking back at the kinds of real estate deals that provide the cash-on-cash yields that we think are accretive to our enterprise. And one other thing, of course, some of our peers are trading at fractions of their book values. And -- at some point, there's -- they can't raise capital. There's an uncle thing. You should fold up shop and obviously, is the largest in our sector and largest in the world.

我們希望增加我們的房地產帳簿，並回顧那些提供現金收益的房地產交易，我們認為這些交易可以為我們的企業帶來增值。當然，還有一件事，我們的一些同行的交易價格僅為其帳面價值的一小部分。並且 — — 在某些時候 — — 他們無法籌集資金。有一件叔叔的事。你應該關門大吉，顯然，這是我們這個行業中最大的，也是世界上最大的。

we'd love to be the acquirer. But -- and also partnering with Star Capital Group, we can split these portfolios if there's lots of bad assets, we're able to work on them and figure out how to split the assets.

我們很樂意成為收購方。但是——並且與星光資本集團合作，我們可以分割這些投資組合，如果存在大量不良資產，我們可以對其進行處理並找出如何分割資產。

We actually did when we bought LNR 232 years ago. There were some assets in there that did not fit STWs work. You have to look at the book today and just be sort of astonished. You have -- we continue to hit our numbers while carrying nearly almost $2 billion of non-accrual assets, which is astonishing, that is bad news and really good news. At some point, we're going to be able to harvest that capital and put it back to work, can't wait, don't want to do stupid things, have the ability to reinvest in those assets, reposition them and bring them back to market and try to get great returns on our incremental capital, but it is future earnings power.

232 年前我們購買 LNR 時確實這麼做了。其中的一些資產並不適合 STW 的工作。今天你看看這本書，一定會感到驚訝。我們繼續實現我們的目標，同時卻背負著近 20 億美元的非應計資產，這是令人驚訝的，這是壞消息，也是好消息。在某個時候，我們將能夠收穫這些資本並使其重新發揮作用，迫不及待，不想做傻事，有能力重新投資這些資產，重新定位它們並將它們帶回市場，並嘗試從我們的增量資本中獲得豐厚的回報，但這是未來的盈利能力。

And even though we carry $650 million of reserves against it. We do think that's a significant capital that we look forward to redeploying and we watch those assets, and Jeff and the team watch the outsets pretty much every day.

儘管我們已為此準備了 6.5 億美元的儲備金。我們確實認為這是一筆重要的資本，我們期待重新部署，我們專注於這些資產，傑夫和團隊幾乎每天都在關注事態發展。

Our liquidity is excellent. In our universe, I'd say we have what I think Jamie Dimon referred to as a fortress balance sheet. The extension of maturities, the rates at which we're capable of raising debt securities, not only in our real estate book, but in our energy book, really position us well against our comps that provide sustainable competitive advantage.

我們的流動性非常好。在我們的宇宙中，我想說我們擁有傑米戴蒙所說的堡壘資產負債表。期限的延長，以及我們能夠籌集債務證券的利率，不僅在我們的房地產賬簿上，而且在我們的能源賬簿上，確實使我們在與提供可持續競爭優勢的公司競爭中處於有利地位。

So at the end of the day, it's all about our team, and we have over 350 people and another 450 at SEG that are dedicated to finding opportunities for the company, both here and abroad. And we have -- whether it's the CMBS team or the special servicing team with a $107 billion of named servicing.

所以說到底，這一切都取決於我們的團隊，我們有超過 350 名員工，SEG 還有另外 450 名員工致力於為公司尋找國內外機會。我們擁有—無論是 CMBS 團隊還是擁有 1,070 億美元指定服務的特殊服務團隊。

We are positioned to continue to outperform over long periods of time. So I've got nothing else to add. I think our job now is just execution, execution, execution, be patient, grow in every one of our business lines if we can. Be more aggressive in using our unusual access to data to make better, faster decisions. We're doing a giant AI project over the whole company right now to help us be more efficient.

我們有能力在長期內持續維持優異表現。所以我沒有什麼好補充的了。我認為我們現在的工作就是執行、執行、執行，保持耐心，如果可以的話，在我們的每一條業務線上都實現發展。更積極地利用我們不同尋常的資料存取權限來做出更好、更快的決策。我們目前正在整個公司範圍內開展一項大型人工智慧項目，以幫助我們提高效率。

And I look forward to the implementation of that over the coming year.

我期待著這個目標在來年得以實現。

I was getting a tutorial on the flight home yesterday from Tech Wizards that was astonishing. So we have a lot to do there, and most companies do, and I think it only bodes well for our productivity and our margins. So excited for the next quarter. The road is not [pay] with gold, there's bumps. You're going to see things come up and down, I'm sure of it.

昨天在回家的航班上，我得到了 Tech Wizards 提供的教程，真是令人驚奇。因此，我們在那裡有很多事情要做，大多數公司也都這樣做，我認為這對我們的生產力和利潤率來說都是好兆頭。對下一季感到非常興奮。這條路不是用黃金鋪設的，而是充滿顛簸的。我確信，你會看到事情起起伏伏。

And the outcome of Trump administration's policies are still unknown, but we couldn't probably be a better position for that. And I look forward to the year and we're working going forward.

川普政府政策的結果仍不得而知，但我們對此的立場可能已經很好了。我期待著新的一年，我們也將繼續努力。

Now, we will take any questions.

現在，我們將回答任何問題。

Thank you. We will now be conducting a question-and-answer session. (Operator Instructions)

謝謝。我們現在將進行問答環節。（操作員指示）

Doug Harter, UBS.

瑞銀的道格·哈特。

Thanks. So it sounds like you've started to make some progress on resolving your non-performing loans. As you look at the remaining assets there, how should we think about the pace of resolution and whether you can be kind of as successful at exiting those with minimal losses.

謝謝。聽起來您在解決不良貸款方面已經開始取得一些進展。當你查看剩餘資產時，我們應該如何考慮解決的速度，以及你是否能夠以最小的損失成功退出這些資產。

Doug, thanks for the question. There's a couple of apartment deals that we know we can likely sell at our basis, and we will do so in this year. we have apartments that cats were building on the upper west side and the scaffolding coming down in May, and we expect to have significantly more progress there. We just sold the unit first $7.5 million this week, in line with our underwriting. So that's good.

道格，謝謝你的提問。我們知道有幾套公寓很可能在我們的基礎上出售，我們將在今年完成這些交易。我們在上西區建造了一些公寓，鷹架將於 5 月拆除，我們預計那裡將取得更大的進展。本週，我們剛剛以 750 萬美元的價格售出了首批該單位，符合我們的承保要求。這很好。

We have an office building in Brooklyn that has just signed a second lease full with long-term credit tenant leases. We have someone looking at the last one-third that could resolve easily this year.

我們在布魯克林有一棟辦公大樓，剛剛簽署了第二份租約，其中包含長期信用租戶租約。我們已安排人員負責最後三分之一的問題，這些問題今年可以輕鬆解決。

We got a -- we have an asset in Dallas is something that we have to work through. It's the combination of the mixed-use property with a hotel and multifamily. I think that we could likely work through this year. And we have a couple of downtown LA office buildings that could push into '26 or beyond, but that's generally the flavor.

我們在達拉斯擁有資產，這是我們必須努力解決的問題。它是集酒店和多戶住宅於一體的混合用途物業。我認為我們今年很可能能夠完成這項工作。我們在洛杉磯市中心有幾棟辦公大樓，預計可以維持到 26 年甚至更久，但總體來說就是這樣。

Multis, if we get to this forward of in the low teens, 5, you pick a number. And you have a 5.5% or 6% debt yield. You have a high likelihood of getting out of park and most of the stuff that we wrote loans on against 3.5 and 4 caps at the very lowest tightest part of the market in 2021. They're performing at that high 5 debt yield on the low end. And that high site yield gets out in the low teens or low sulfur, and we'll have to hold it for a little while longer.

倍數，如果我們達到十幾歲以下的這個數字，即 5，你就選擇一個數字。您的債務收益率為 5.5% 或 6%。您很有可能在 2021 年市場最緊張的時期擺脫困境，並獲得我們在 3.5 和 4 上限下發放的大部分貸款。他們的業績表現處於低端高 5 債務收益率水準。而且，現場產量高，含硫量低，我們必須再維持一段時間。

But where the forward curve is now, I expect things to sort of stop coming in and start picking up progress on the others. We have staying power in a lot of these loans -- we have eight years of walls on a lot of the office loans and (inaudible).

但就目前的發展曲線而言，我預期事情會停止發展，而其他方面則會開始取得進展。我們在許多貸款方面都有持久力——我們對許多辦公室貸款都有八年的期限，（聽不清楚）。

I would just add that I want them all -- and they're not giving them back. I mean they give them back to us your attachment point is so good on replacement cost, and you would love to own them with the coming massive decrease in supply coming to the multi-market. So rents will improve certainly next year in the back half of next year and it's '27. One obvious impact of the administration's policies or people are very nervous about these starts. And nobody really knows what anything is going to cost.

我只想補充一點，我想要全部——但他們卻不歸還。我的意思是，他們把它們還給我們，你的連接點在重置成本上非常好，而且隨著多元化市場供應量即將大幅減少，你會很樂意擁有它們。因此，明年下半年租金肯定會上漲，也就是 27 年。政府的政策的一個明顯影響是人們對這些開始感到非常緊張。沒有人真正知道任何東西要花多少錢。

And it's not just materials, not just the steel dose of the labor, is it available? What will happen with the deportations of the immigrants and illegal immigrants.

而且這不只是材料，不只是勞動力的鋼材劑量，有嗎？驅逐移民和非法移民會發生什麼事？

And then the third, what people don't talk about is the supply chain. You need to get every component to a building to finish it, not 80% or 90% or 95% of them. So all people I know, and I just returned from an industry conference where developers are talking about not starting projects and pushing them off, which bodes well for any existing asset and their performance. And almost every -- and the asset classes are performing now remarkably well. I mean, people look at the -- we're not decently the hottest kid in the -- today in the table.

第三，人們不談論的是供應鏈。你需要把建築物的每個組件都裝上去才能完成它，而不是只裝 80%、90% 或 95%。因此，我認識的所有人，以及我剛從一個行業會議回來的人，在會上，開發人員正在討論不要啟動項目並推遲項目，這對任何現有資產及其表現來說都是好兆頭。幾乎所有資產類別現在都表現得非常好。我的意思是，人們會看一看——我們今天在積分榜上並不是最熱門的孩子。

But the multi-markets are sitting at 95-ish, 94%, 95% occupancies with record supply.

但多元化市場的入住率達到 95% 左右、94% 和 95%，供應量創歷史新高。

Usually, in my youth, might have fallen to the low teens, high teens. And for the most part, rents are flattish, slightly up, some few cities down, some cities up more than a few pennies. So when there's new supply the week and where there's very little supply, they're relatively strong. We really needed a shallow recession, not a deep one that creates demand structure. But even the office markets are shockingly boat if you have a good collateral.

通常，在我年輕的時候，年齡可能會降到十幾歲或十幾歲。整體而言，租金持平或略有上漲，少數城市租金下降，有些城市則上漲不只幾美分。因此，當一周有新的供應並且供應很少時，它們就會相對強勁。我們真正需要的是淺度衰退，而不是造成需求結構的深度衰退。但如果你擁有良好的抵押品，即使是辦公大樓市場也會出乎意料地繁榮。

One thing I'd say on our book, I mean, one of the things like we have to consider, we have a building we took back in downtown CBD of Washington, and D.C., it can be converted and is ready to be converted to residential. And I just suggest that we hold off the work right now to understand the situation in D.C. with the employment base.

關於我們的書，我想說的一件事是，我們必須考慮的事情之一，我們在華盛頓特區市中心中央商務區有一棟建築，它可以改建，並準備改建為住宅。我只是建議我們現在暫停這項工作，以了解華盛頓特區的就業情況。

But we're doing all the planning. We're doing all the planning, all the approval (inaudible) shovel in the ground on that date or not, but we'll be ready to go in a year. Not deciding whether we're putting the shovel in the ground on that date or not, but we'll be ready to go in a--

但我們正在做所有的規劃。我們正在進行所有的規劃，所有的批准（聽不清楚）無論是否在那天動工，我們都會在一年內做好準備。我們還沒有決定是否在那一天動工，但我們已經做好準備——

We're going to be ready to go. We're just taking a moment we want to do that. So it's a relatively -- we plan to define the entire conversion is actually a very handsome property. Just we want to make sure the rents are what we think they're going to be. So with that, the next.

我們就準備出發了。我們只是想花一點時間來做這件事。所以這是一個相對的——我們計劃定義整個轉換實際上是一個非常漂亮的屬性。我們只是想確保租金符合我們的預期。那麼，接下來。

Yeah. And as part of that question, Doug, the follow-up would probably be on the three large offices that are maturing this year. One is the Brooklyn office building where I told you we signed a second lease and got up to two-thirds lease, and we're talking now about one third credit to lease and then that will work out. That's the March maturity. The June maturity is an outset in California that has a five debt yield that we have a basis in the low 200s a (inaudible).

是的。作為這個問題的一部分，道格，後續問題可能涉及今年即將成熟的三個大型辦公室。一個是布魯克林辦公大樓，我告訴過你，我們簽署了第二份租約，並獲得了三分之二的租約，我們現在正在討論三分之一的租約信貸，然後就可以了。這是三月到期的。6 月到期的債券是加州的首批債券，其收益率為 5%，我們的基礎收益率在 200% 左右。（聽不清楚）。

We sold 15% of that complex by selling one building at $280 a foot, $66 above our basis. So we feel okay. And we think that's good leasing prospects.

我們以每英尺 280 美元的價格出售了一棟建築，比我們的基準高出 66 美元，從而售出了該綜合大樓 15% 的股份。所以我們感覺還好。我們認為這是一個很好的租賃前景。

We're working on updating the lobbies and doing some work there. So we actually feel pretty good about that. And then the October maturity this year is our large loan in Downtown D.C. really trophy terrific building. It's 84% leased and at eight years of [yard] and it will have a 6-ish debt yield and likelihood to be able to go up from there.

我們正在更新大廳並在那裡做一些工作。所以我們實際上對此感覺非常好。今年 10 月到期的是我們在華盛頓市中心的一筆大額貸款，這筆貸款真的是一個很棒的建築。它的出租率為 84%，租期為八年，其債務收益率約為 6%，並且很有可能從那裡上升。

But our capital, given we have such liquidity and access to capital, we have the ability to ride these out and wait for the optimal time.

但是我們的資本，鑑於我們擁有這樣的流動性和資本獲取管道，我們有能力渡過難關並等待最佳時機。

And we will move on at the optimal time. But when we have (inaudible), we have cash flow. It doesn't necessarily make sense to go today. We're going to wait to see what the market gives us, and we sort of know where our downside is, but we think we have upside on these (inaudible), and that's part of being a $110 billion CRE manager. Hopefully, like we have in the past, where I think we had going into the cycle, $100 million-plus of gains on our (inaudible).

我們將在最佳時機繼續前進。但當我們有（聽不清楚）時，我們就有現金流。今天去不一定有意義。我們將拭目以待，看看市場會為我們帶來什麼，我們知道我們的缺點在哪裡，但我們認為我們在這些方面有優點（聽不清楚），這是作為 1100 億美元 CRE 經理的一部分。希望像我們過去那樣，我認為當我們進入周期時，我們的收益會超過 1 億美元。（聽不清楚）。

We like to work on assets and Barry likes to be involved and that's why he knows all the details of a rental in D.C. and what we're going to do. And so we're very involved and we'll work it out as best as we can.

我們喜歡處理資產，而 Barry 喜歡參與其中，這就是為什麼他了解華盛頓特區租賃的所有細節以及我們將要做的事情。因此，我們非常投入，並將盡最大努力解決問題。

Great, thank you.

太好了，謝謝。

Don Fandetti, Wells Fargo.

富國銀行的唐‧范德蒂 (Don Fandetti)。

Hi, Can you talk a bit more about the opportunity you're seeing in residential credit. Clearly, you have a lot of capital banks are selling. And I think you said you've been on a portfolio. Are you constrained in terms of not wanting to put on a lot of leverage there? Or is this a significant opportunity for growth.

您好，能否再多談談您在住宅信貸方面看到的機會。顯然，銀行正在出售大量資本。我想您說過您一直在投資組合中。您是否因為不想在那裡施加太多影響力而受到限制？或者這是一個重要的成長機會。

Yeah. So you are the portfolio that we looked at was a $2 billion portfolio of commercial that was coming out of a middle market bank, $10 million or so loans kind of thing that's perfect for us. with LNR as our servicer. We just have so much information. We can rip through a massive portfolio like that very quickly and come up with a value that's accretive to us.

是的。所以，我們研究的投資組合是來自中型市場銀行的 20 億美元商業投資組合，其中 1,000 萬美元左右的貸款對我們來說非常完美。 LNR 是我們的服務商。我們掌握的資訊實在太多了。我們可以非常快速地從如此龐大的投資組合中篩選出對我們有利的價值。

Some -- a couple of people, I think, thought it was growth a little bit more, but we went a few rounds on that. In resi credit, you've noticed we haven't restarted the resi machine. We took a write-down of $230 million or $240 million in 2020 or so on our resi book. We owned lower coupons and market as the rate went up. and we've been a little bit reticent to go again, but our resi team has been looking at just about every opportunity, every platform. I could definitely see us buying an originator, building an origination business around non-QM or which we've done in the past and some agency and maybe some investor loan, things like some of our peers do.

我認為，有些人認為這只是稍微增長了一點，但我們對此進行了幾次討論。在 resi credit 中，您注意到我們尚未重新啟動 resi 機器。我們在 2020 年左右對住宅帳簿減記了 2.3 億美元或 2.4 億美元。隨著利率上升，我們擁有較低的優惠券和市場。我們有點不願意再去，但我們的住宅團隊一直在尋找幾乎每一個機會，每一個平台。我可以肯定地看到我們收購一家發起機構，圍繞非 QM 建立發起業務，或者像我們過去所做的那樣，以及一些代理機構和一些投資者貸款，就像我們的一些同行所做的那樣。

I do think that there is tremendous liquidity available to us from a financing play on that.

我確實認為，透過融資我們可以獲得巨大的流動性。

I think levered yields are attractive. There has been -- there are decent opportunities also in sort of secondaries there. But we are going to reemerge in resi. It's just a matter of when, and we are looking at every opportunity to figure out how we do that to buy a resi originator with licenses that does $2 billion or $3 billion a year. you might pay $125 million to $150 million of premium.

我認為槓桿收益率很有吸引力。那裡也存在著某種二級市場中不錯的機會。但我們將會重新出現在 resi 中。這只是時間問題，我們正在尋找每一個機會來弄清楚如何做到這一點，以收購一家擁有執照的住宅發起人，該執照每年可帶來 20 億美元或 30 億美元的收入。您可能需要支付 1.25 億美元到 1.5 億美元的保費。

We're trying to decide if that's something we can build and create a $125 million to $150 million of shareholder value by building it ourselves rather than going outside. But you will see us in the next year, reemerge and start putting some credit trades on in resi. We do think there's a long-term opportunity, and it's something that fits us really well.

我們正在嘗試確定我們是否可以建立這個東西，並透過自己建構而不是外部建構來創造 1.25 億至 1.5 億美元的股東價值。但明年你會看到我們重新崛起並開始在住宅領域進行一些信貸交易。我們確實認為這是一個長期的機會，而且它非常適合我們。

I'd love to see our dividend yields come down from 10% where I don't really understand it there. But if it did come down and our cost of capital change, then that business becomes a lot more attractive. But with where our dividend yield is today, our CRE lending in our energy infrastructure businesses feel like the best home for capital.

我希望看到我們的股息殖利率從 10% 下降，但我不太明白這一點。但如果它確實下降並且我們的資本成本發生變化，那麼這項業務就會變得更有吸引力。但考慮到我們目前的股息收益率，我們能源基礎設施業務中的企業房地產貸款似乎是資本的最佳歸宿。

Got it. And then on corporate M&A, are you sort of still thinking that sellers are reluctant, especially if we're looking at fed cuts? Or do you feel like you're starting to feel more optimistic that there could be a seller and some consolidation opportunities for you?

知道了。那麼，關於企業併購，您是否仍然認為賣家不願意，特別是如果我們看到聯準會降息的話？或者您是否感覺自己開始更加樂觀地認為可能會有賣家並為您帶來一些整合機會？

Given with very hard to -- you can't buy more than 9.9%. There's a lot of rules that they have to want to be bought. -- corporate M&A in the REIT world is very difficult unless a seller wants to be a seller.

鑑於非常困難——你不能購買超過 9.9% 的利率。有許多規則要求他們必須想被收購——除非賣家願意成為賣家，否則房地產投資信託基金領域的企業併購非常困難。

Yeah. I mean it's not where they're trading. It's what the Board will do a deal at. And I think you'll see some action in the sector because they're sort of dead man walking. But it really depends on the Board and the management teams through operations.

是的。我的意思是這不是他們進行交易的地方。這是董事會將要達成的交易。我認為你會看到該領域採取一些行動，因為他們就像行屍走肉一樣。但這實際上取決於董事會和管理團隊的運作。

You need to get in there on some of these books. You need -- you can't do it easily from the outside. You need to get inside and really understand the complexity of the asset base. So you can guess but guessing in this business. And obviously, a lot of the smaller entities don't have our corporate debt.

你需要讀一些這樣的書。你需要──你不能輕易從外部做到這一點。您需要深入了解並真正理解資產基礎的複雜性。所以你可以猜測，但這只是猜測而已。顯然，許多較小的實體沒有我們的公司債務。

They have repo debt or they have other -- you have to really understand the terms and conditions of that stuff. So it's a little bit complicated from the outside looking in, especially when they want prices that are on the surface aren't really achievable. And obviously, we like these investments to be accretive to our shareholders.

他們有回購債務或其他——你必須真正了解這些東西的條款和條件。所以從外部看，這有點複雜，特別是當他們想要表面上無法真正實現的價格時。顯然，我們希望這些投資能為我們的股東帶來增值。

So -- but I think I'm optimistic that as we come out of this, it will become more painful for some management to basically to almost nothing. They can't do anything. They don't have a balance sheet, they can't raise capital accretively.

所以——但我認為，我樂觀地認為，當我們走出困境時，一些管理層將面臨更痛苦的境地，幾乎一無所有。他們什麼也做不了。他們沒有資產負債表，無法增加資本。

And in some cases, the fees -- the management fees will overwhelm there. (inaudible) to pay it. So inevitably, there'll be stuff to do.

在某些情況下，費用－管理費將不堪負荷。 （聽不清楚）無法付款。因此不可避免地會有事情要做。

And we're a huge part of the REIT index, given we're more than twice as big as the next biggest competitor in almost as big as the rest of the universe, right? So if we could reduce G&A and consolidate the entire business, we would certainly love to do that at the right prices. The hardest time to do M&A is when someone is trading at 20% or 30% of book.

而且我們是房地產投資信託指數的重要組成部分，因為我們的規模是下一個最大競爭對手的兩倍多，幾乎與宇宙其他部分一樣大，對嗎？因此，如果我們能夠降低一般及行政費用並整合整個業務，我們當然願意以合適的價格做到這一點。進行併購最困難的時期是當某人的交易價格僅為帳面價值的 20% 或 30% 時。

If you're going to pay some significant discount to book that might feel untenable to their Board or their shareholders, the easiest M&A is probably at 70% or 80% of book where you can pay somebody 90% to 100% to book kind of G&A make it make sense for both. So it will be difficult, somebody is going to have to want to be consolidated.

如果您要支付相當大的帳面折扣，而這可能令董事會或股東感到難以接受，最簡單的併購可能是帳面價值的 70% 或 80%，而您可以向某人支付 90% 到 100% 的帳面費用，這種一般及行政費用對雙方都有意義。所以這會很難，總得有人想要鞏固。

Jade Rahmani, KBW.

傑德·拉赫馬尼（Jade Rahmani），KBW。

Thank you very much. I think earlier, Rina mentioned that the timing of loan closings weighed on interest income in the Lending Business in the quarter. Are you expecting an increase in 2Q and going forward?

非常感謝。我認為之前 Rina 提到過，貸款結束的時間對本季貸款業務的利息收入產生了影響。您預計第二季及以後會出現成長嗎？

This is something that I'm always reticent to talk about, Jade, because it feels like it's been in every peers transcript for the last five years, but we did close a tremendous amount right on March 31, so you didn't see any interest income. So I think it's the first time we've used that arrow in our quiver, but it was very true this quarter where we had a lot of closing plate. Our pipeline is really good. Rina always gets mad at me if I want to say what we're going to end up at. But I expect this run rate could be a run rate for a little bit.

傑德，這是我一直不願談論的事情，因為感覺過去五年來，每個同行的成績單上都有這個內容，但我們確實在 3 月 31 日完成了一大筆交易，所以你沒有看到任何利息收入。所以我認為這是我們第一次使用箭筒中的那支箭，但本季確實如此，我們有很多結束板。我們的管道非常好。如果我想要說出我們最終會遇到什麼情況，麗娜總是會對我生氣。但我預期這個運行率可能只是暫時的運行率。

And we -- it's difficult out there. We've lost a number of deals in the last week or two that we hope to get, but we have as long of a pipeline as I've seen both in Europe and in the US, and there's a lot of really interesting opportunities. So hoping that we can maintain that and maintain the success in our energy infrastructure book as well.

而我們——那裡的情況很困難。在過去的一兩周里，我們失去了一些我們希望達成的交易，但我們擁有一條我在歐洲和美國都見過的最長的管道，並且有很多非常有趣的機會。因此希望我們能夠保持這一點，並保持能源基礎設施的成功。

We want to grow, growing is the way to ensure that getting this portfolio back up above our previous high, which I think we will do this year is the best way to offset the drag of the nonaccruals, as Barry said, until we can work out of them. So -- so we are in a growth mode, but it's not growth at any cost. We're reticent on the last 5 basis points on every deal, and we're trying to not chase anything to do it. So grow smartly is the mantra.

我們希望成長，成長是確保投資組合回到先前高點之上的方法，我認為我們今年會做到這一點，這是抵消不計提拖累的最佳方法，正如巴里所說，直到我們能夠解決這些問題。所以——我們處於成長模式，但這並不是不惜一切代價的成長。我們對每筆交易的最後 5 個基點都保持沉默，我們試圖不追逐任何東西來做到這一點。因此，聰明地成長是我們的口頭禪。

You mentioned something interesting on subordinate debt. I was wondering if you plan to execute on that opportunity by originating whole loans and bifurcating them doing more syndication? Or will you just be looking to originate bad loans -- how do you see executing on that?

您提到了一些有關次級債務的有趣內容。我想知道您是否計劃通過發放全部貸款並將其拆分成更多的銀團貸款來抓住這個機會？或者您只是尋求發放不良貸款——您認為該如何執行？

No. It runs again at Adam Belmond in the room. He runs our L&R business and our CMBS business. I think there are opportunities in B pieces we're going to do a few this year. when I said subordinate data, I'm basically saying that what we create when we write a 65 or 70 LTV loan, and we finance 45% or 50% is effectively equivalent to a BBB or BB asset, and that's the $100 billion of money that we put out over the last 16 years.

不。它在房間裡的亞當貝爾蒙德 (Adam Belmond) 那裡再次播放。他負責我們的 L&R 業務和 CMBS 業務。我認為 B 類資產有機會，我們今年會做一些。當我說從屬資料時，我基本上是在說，當我們簽發 65 或 70 LTV 貸款時，我們融資 45% 或 50%，實際上相當於 BBB 或 BB 資產，這就是我們在過去 16 年中投入的 1000 億美元資金。

And with the credit curve in security deepening, we think we should be able to earn a little bit more on our loan book that sort of mirrors the look-through rating to those. We can also obviously play in subordinate securities as well, and that's something that the team has been looking at. They've got cheap, but not super cheap. We don't like putting leverage on leverage.

隨著安全信用曲線的不斷深化，我們認為我們應該能夠在貸款帳簿上賺取更多的收益，這在某種程度上反映了這些貸款的透視評級。顯然，我們也可以參與下屬證券業務，這也是團隊一直在關注的事情。它們很便宜，但不是超級便宜。我們不喜歡把槓桿加到槓桿上。

We haven't done that here in a long time. And so if their unlevered yields on BBs are 10% or so, it doesn't quite hit the hurdle that we're hoping for, and we're reticent to leverage, but on the right securities where we have the ability to underwrite every loan in every CMBS deal and have a real strong opinion that book Adam has probably returned over 20% for us in the 16 years that we've owned it. If that becomes a 11 or 12, we will be a large buyer of secondary bond with our liquidity. .

我們已經很久沒有這樣做了。因此，如果 BB 的無槓桿收益率為 10% 左右，那就沒有達到我們所希望的門檻，而且我們也不願意使用槓桿，但對於合適的證券，我們有能力承銷每筆 CMBS 交易中的每筆貸款，並且我們堅信，在我們擁有 Adam 的 16 年裡，賬面回報率可能已經超過 20%。如果變成 11 或 12，我們將利用我們的流動性成為二級債券的大買家。。

Yeah. (inaudible) up to those levels, you start losing interest on the sellers. So it's not that we haven't reached the speed point (inaudible).

是的。 （聽不清楚）到了那個水平，你開始對賣家失去興趣。所以並不是說我們還沒達到速度點（聽不清楚）。

Richard Shane, JP Morgan.

摩根大通的理查謝恩。

Hey guys, thanks for taking my questions this morning. Barry, when I sort of parse through your comments, what I hear are a lot across current that you're sort of confronting. The consumer is slowing down, but you see rates going lower as a result. It's an attractive financing market. So there is capital available in the market, but your competitors, many of them are on their heels. Really two questions here.

嘿夥計們，感謝你們今天早上回答我的問題。巴里，當我分析你的評論時，我聽到了很多你所面對的矛盾。消費正在放緩，但你會看到利率隨之下降。這是一個有吸引力的融資市場。因此，市場上有可用的資本，但你的競爭對手，其中許多都緊隨其後。這裡確實有兩個問題。

One, does that, does that put you guys on the front foot now in terms of being aggressive deploying capital? Do you want to be a little bit more conservative? And also, is the sort of as you described them, the Deadman walking for many of your competitors, but the availability of capital in the markets, is it creating new competitors or new types of competition for you guys?

首先，這是否讓你們在積極部署資本方面處於領先地位？你想稍微保守一點嗎？而且，正如您所描述的那樣，對於您們的許多競爭對手來說，就像行屍走肉一樣，但是市場上資本的可用性是否會為您創造新的競爭對手或新類型的競爭？

It's the competitors, as you point, are shifting. I mean, I think we see the private credit guys much more -- and -- but I think we still have an advantage in our scale like we wrote a $500 million junior position, like not many people get that phone call. And because we know the property classes and we're active, people know we're going to perform. They know that it won't take us seven years, we can do it expeditiously. .

正如您所說，競爭對手正在改變。我的意思是，我認為我們看到私人信貸人員更多——而且——但我認為我們在規模上仍然具有優勢，比如我們寫了一個 5 億美元的初級職位，沒有多少人接到那個電話。因為我們了解房地產類別，而且我們很活躍，所以人們知道我們將會有所表現。他們知道我們不需要花七年時間，我們可以快速完成。。

I think the amount of capital needed in the data center space is staggering. And the credits are great, and the debt yields to our positions are phenomenal. And spreads have come in -- but there's -- if we can pick up the juniors in those positions, we actually probably don't know it. We're very active on the equity side in data centers. We probably committed over $10 billion to the space and have a get 1.5 gigawatts of power under our control.

我認為資料中心領域所需的資金數量是驚人的。信貸額度很高，我們的部位的債務收益率非常高。而且利差已經出現 - 但是 - 如果我們能夠挑選這些職位的初級員工，我們實際上可能並不知道這一點。我們在資料中心的股權方面非常活躍。我們可能在該領域投入了超過 100 億美元，並控制了 1.5 千兆瓦的電力。

With 1 of the 10 largest players in the States and number 1 in Ireland, and we have about 160 people working in the data center space.

我們是美國十大企業之一，也是愛爾蘭第一大企業，在資料中心領域擁有約 160 名員工。

So we can underwrite this stuff quickly. We know the credit, we know the tenants. We know the issues and leases. We've written them all to Amazon, Oracle, (inaudible), et cetera. So I think that's a space area we could add infinite capital where we have it.

所以我們可以快速承保這些東西。我們了解信用，我們了解租戶。我們了解這些問題和租約。我們已將它們全部寫給亞馬遜、甲骨文、（聽不清楚）等公司。所以我認為，這是一個我們可以在擁有無限資本的地方投入的空間領域。

And we do like the physicians there. So that's a big new giant to take the scale of the commitments from the majors. It's something like $250 billion to $300 billion leverage, $900 billion, that's almost as big as the infrastructure bill, and that's this year. So maybe 25% of its offshore. There's a lot of capital that needs to go into the space.

我們確實喜歡那裡的醫生。因此，這是一個新的巨頭，可以承擔主要公司的承諾規模。這相當於 2500 億美元到 3000 億美元的槓桿，9000 億美元，幾乎和基礎設施費用一樣大，而且這還是今年的支出。因此大概有 25% 的份額位於海外。需要大量資金投入該領域。

So we've done some. We'd like to do a lot more and I don't see -- it's a big enough area and it's enough -- and by the way, money is kind of contracting a little bit. People are a little nervous about private credit. So I think they should be in corporates if we do have a recession. And I think the uncertainty, as Marc Rowan has talked about, breeds delays, and you just wait for a clearer picture.

所以我們做了一些。我們想做更多的事情，但我看不到——這是一個足夠大的區域，而且足夠了——順便說一句，資金有點緊縮。人們對私人信貸有點緊張。所以我認為如果我們真的遭遇經濟衰退，他們就應該進入企業。我認為，正如馬克羅文所說，不確定性會導致延誤，你只能等待更清晰的畫面。

And as you see in M&A is it, I think low is not seen in 20 years. I mean nobody can do anything with anyone. So -- but I think I'm kind of happy. I mean, for us, this is a good environment. And because we have conviction and we've been doing this for so long.

正如您在併購中所看到的，我認為 20 年來從未出現過如此低的水平。我的意思是沒有人可以對任何人做任何事。所以——但我覺得我很高興。我的意思是，對我們來說，這是一個好的環境。因為我們有信念，而且我們已經這樣做了很長時間。

Star Capital is enjoying its 34th year. So we have the data also to support our -- and help us make better decisions. So I think it's good. I'm certainly in a way more -- less worried that it's the opportunity set can we find pricing we need -- with the banks -- as Jeff pointed out multiple times, they do so much better now lending to us and making the loans themselves and tumult in the spreads of the CMBS market will enable us to come in and shore up bids on deals. And the other thing we've learned as a borrower, which is becoming super important.

星光資本已成立34週年。因此，我們也有數據來支持我們——並幫助我們做出更好的決策。所以我認為這很好。我當然更擔心——不太擔心這是我們能否找到所需定價的機會——與銀行合作——正如傑夫多次指出的那樣，他們現在做得更好了，他們向我們提供貸款，他們自己發放貸款，而商業抵押貸款支持證券市場利差的動盪將使我們能夠進入並鞏固交易的出價。作為借款人，我們也學到了另一件事，這變得非常重要。

When you go to the banks and they originate for you, we just did this the other day, by the way, they're going to syndicate the loan. It's not going to CMBS. And they syndicated in many cases, they're syndicated probably offshore accounts.

當你去銀行時，他們會為你發放貸款，順便說一下，我們前幾天剛剛這樣做過，他們會將貸款聯合起來。它不會進入 CMBS。在許多情況下，他們是共同經營的，他們可能是聯合離岸帳戶。

And then if there's a bump in the road, you're dealing with somebody in Korea, you don't know or Europe. And we've been willing to take excess spread to let them know who our counterparty is going to be. And I think that a lot of borrowers are paying more and more attention to that, but it will give up 25 bps, 50 bps because you want to know if something ever happens, I can speak to Jeff or Dennis, our team or Adam, whoever it is on our spot, and we'll work it out with you and they will create a win-win. So I think people are -- it's interesting. I think borrowers are smarter.

然後，如果你遇到困難，你就得跟韓國人、你不認識的人或歐洲人打交道。我們願意承擔額外的利差，以便讓他們知道我們的交易對手是誰。我認為很多藉款人越來越關注這一點，但它將放棄 25 個基點、50 個基點，因為你想知道如果發生什麼事情，我可以與 Jeff 或 Dennis、我們的團隊或 Adam 交談，無論他是誰，我們都會和你一起解決這個問題，創造雙贏。所以我認為人們——這很有趣。我認為借款人更聰明。

Like they don't want the 5 bps right now. They want to know where their loan is going. And that's a really important feature that's going to emerge that I would say was not here five years ago. We weren't paying attention to it.

就好像他們現在不想要這 5 個基點。他們想知道他們的貸款的去向。這是一個即將出現的重要特徵，我想說五年前它還不存在。我們沒注意到它。

I think what happened to all of us is, obviously, the world changed. Interest rates went up 500 basis points, and we look at our stacks and we're trying to do something on the equity side and some bank we've never heard of says no. Everyone else is yes. And you can have a guy with a 10% position. And he's like, I'm not doing it, you got to pay me in a part and he said, Well, Morgan Stanley, you take them out of (inaudible).

我認為我們所有人身上發生的事情顯然是世界改變了。利率上升了 500 個基點，我們看著我們的資金，試圖在股票方面做些什麼，但一些我們從未聽說過的銀行卻說不。其他人都同意。你可以找一個持有 10% 股份的人。他說，我不做，你得付一部分錢給我，然後他說，好吧，摩根士丹利，你把他們從（聽不清楚）。

Because you sold the loan to them, we never knew where they were. And -- that's the kind of negotiations you see. So I think that's really good for us. I mean relationship banking in the debt side is actually when you get to these big deals. It's a big deal, and we've been doing it a long time.

因為你把貸款賣給了他們，所以我們從來不知道他們在哪裡。這就是您所看到的談判。所以我認為這對我們來說真的很好。我的意思是，債務方面的關係銀行業務實際上就是你達成這些大交易的時候。這是一件大事，我們已經做了很長時間了。

We've got a great team. So kind of interesting.

我們擁有一支出色的團隊。真有趣。

(inaudible) that by saying, as the REITs and the banks have written less loans in COVID, you've certainly seen insurance debt funds and CMBS pick up the slack. As you look at the forward over curve and expectations of forward rates, if rates do go down, you're going to have less annuity sales. Insurance is very yield-driven and they will pull back.

（聽不清楚）也就是說，由於房地產投資信託基金和銀行在 COVID 期間發放的貸款減少，你肯定會看到保險債務基金和商業抵押貸款支持證券 (CMBS) 彌補了不足。當您查看遠期曲線和遠期利率預期時，如果利率確實下降，年金銷售額就會減少。保險業非常注重收益，因此他們會撤退。

So in that environment where we move to the forward curve and rates go lower, we expect that our position in the market will only improve versus insurance and debt funds in CMBS and then last thing I would say, as Barry talked about data centers. The only thing that he didn't mention is that all of our loans have been made on sort of 15 or longer year leases to (inaudible) credit tenants on the other side.

因此，在我們轉向遠期曲線且利率下降的環境下，我們預計我們在市場中的地位相對於 CMBS 中的保險和債務基金只會有所提高，然後我想說的最後一件事是，正如 Barry 談到數據中心時所說的那樣。他唯一沒有提到的是，我們所有的貸款都是以 15 年或更長時間的租約形式發放給另一方的（聽不清楚）信用租戶的。

So not a lot of speculation there other than getting the construction project finished, which we have significant time to do in the core and shell is not that hard to figure out. So we really like that space.

因此，除了完成建設項目之外，沒有太多的猜測，我們有大量時間來完成核心和外殼工程，這並不難解決。所以我們真的很喜歡那個空間。

Got it. As always, a very interesting answer. I really appreciate it guys. Thank you.

知道了。一如既往，這是一個非常有趣的答案。我真的很感謝你們。謝謝。

Thanks, Rick.

謝謝，里克。

Thank you, operator.

謝謝您，接線生。

We have reached the end of the question-and-answer session. Mr. Barry Sternlicht, I'd like to turn the floor back over to you for closing comments.

問答環節已結束。巴里·斯特恩利希特先生，我想把發言權交還給您，請您發表最後評論。

Thanks for joining us, everyone. We look forward to talking to you next quarter. Have a great Memorial Day, I guess. As we enter the summer season, (inaudible).

感謝大家的參與。我們期待下個季度與您交談。我想，祝大家陣亡將士紀念日愉快。隨著我們進入夏季，（聽不清楚）。

And a public shout out to Mark Cagley, who retired from the firm last month, and this is the first call in 10 years without him. Hope you're enjoying your retirement and listening in (inaudible).

並公開向上個月從公司退休的馬克·卡格利致敬，這是 10 年來第一次沒有他參與的電話會議。希望您享受退休生活並收聽（聽不清楚）。

Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation and have a wonderful day.

女士們、先生們，今天的電話會議到此結束。現在您可以斷開線路。感謝您的參與並祝您有美好的一天。