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    Chris Muller • Citizens JMP

    Chris Muller's questions to Ares Commercial Real Estate Corp (ACRE) leadership

    Chris Muller's questions to Ares Commercial Real Estate Corp (ACRE) leadership • Q2 2025

    Question

    Chris Muller from Citizens JMP sought clarification on the accounting for the $33 million realized loss and the associated CECL reserve release, and asked if new loan originations will be smaller in size going forward.

    Answer

    CFO & Treasurer Jeffrey Gonzales clarified that the $33 million gross loss on the life sciences loan was offset by a $19 million specific reserve, resulting in a $14 million net impact to book value. CEO & Director Bryan Donohoe added that the average loan size is likely to decrease to improve diversification.

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    Chris Muller's questions to Acres Commercial Realty Corp (ACR) leadership

    Chris Muller's questions to Acres Commercial Realty Corp (ACR) leadership • Q2 2025

    Question

    Chris Muller from Citizens JMP asked about the company's near-term leverage targets, whether the REO properties are financed, and the potential timing for a new CLO. He also questioned what milestones, such as REO sales or EAD growth, are needed before the dividend is reinstated.

    Answer

    Andrew Fentress, Chairman of the Board, stated that leverage could comfortably increase to 3.5x to 4.0x, primarily through non-recourse CRE CLO financing. He confirmed the REO properties are levered at the asset level. Fentress projected a new CLO for Q4 2025 or Q1 2026 and explained that reinstating the dividend is contingent upon monetizing REO assets and ramping the loan portfolio to drive sufficient Earnings Available for Distribution (EAD).

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    Chris Muller's questions to TPG RE Finance Trust Inc (TRTX) leadership

    Chris Muller's questions to TPG RE Finance Trust Inc (TRTX) leadership • Q2 2025

    Question

    Chris Muller of Citizens JMP Securities, LLC asked about the Real Estate Owned (REO) portfolio, questioning if further gains could be expected on future sales given the successful dispositions in Q2. He also inquired why the remaining multifamily REO assets are currently unfinanced.

    Answer

    Robert Foley, CFO, responded by highlighting the company's historical success in selling all REO properties at a book gain. He stated that operating performance has been improved on remaining assets and that several will be brought to market in the near future. Mr. Foley explained that the multifamily REO assets are not financed primarily due to the frictional costs of securing financing on assets expected to be held for a relatively short term, though he affirmed they are 'eminently financeable'.

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    Chris Muller's questions to Ladder Capital Corp (LADR) leadership

    Chris Muller's questions to Ladder Capital Corp (LADR) leadership • Q2 2025

    Question

    Chris Muller of Citizens JMP asked about expectations for net loan portfolio growth in the second half of the year and if there is a target portfolio size. He also inquired about how levered returns on new loans compare to historical levels and sought to quantify the cost-of-funds benefit from the new investment grade rating.

    Answer

    CEO Brian Harris projected potentially writing another billion dollars in loans by year-end, driven by a pickup in acquisition financing. President Pamela McCormack added that with muted payoffs expected, they anticipate net portfolio growth. Harris noted that current unlevered returns are around 9%, which is healthy. Regarding the IG rating, he confirmed a significant benefit, estimating the coupon on the new bond would have been over 100 basis points higher without it. McCormack highlighted that spreads have already tightened since issuance and pointed to their unsecured revolver rate as a benchmark for future tightening.

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