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    Christopher Muller • Citizens JMP Securities

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

    Christopher Muller's questions to Acres Commercial Realty Corp (ACR) leadership • Q1 2025

    Question

    Christopher Muller inquired about the specifics of the two loan sales, the reasons for the drag from REO operations on earnings, and the health of the investment pipeline amid recent market volatility.

    Answer

    Mark Fogel, President and CEO, disclosed that one loan was sold at par, while another nonperforming hotel loan was sold at a $700,000 loss, which was a strategic decision. He attributed the REO drag to typical Q1 seasonality for its hotel assets, which he expects to reverse in subsequent quarters. Fogel also noted the investment pipeline is stronger than ever, as market volatility has sidelined competitors, and reaffirmed the company's growth targets.

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    Christopher Muller's questions to Acres Commercial Realty Corp (ACR) leadership • Q4 2024

    Question

    Christopher Muller of Citizens JMP Securities asked about the potential magnitude of gains from the remaining REO portfolio, the expected timeline for monetization, and the reason for the quarter-over-quarter increase in real estate expenses.

    Answer

    Chairman Andrew Fentress stated that while not providing specific guidance, the company anticipates future gains from REO sales and expects the monetization process to be largely completed in 2025. CFO Eldron Blackwell clarified that the Q4 increase in real estate expenses was due to one-time cleanup items and should not be considered a recurring run rate.

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    Christopher Muller's questions to Acres Commercial Realty Corp (ACR) leadership • Q3 2024

    Question

    Christopher Muller of Citizens JMP Securities inquired about the valuation of REO assets, the potential for gains upon sale, whether realized gains would impact EAD, and the reason for a change in the number of risk-rated 4 loans.

    Answer

    President and CEO Mark Fogel explained that REO assets are held at cost and gains are recognized only upon monetization, but he anticipates incremental gains. He confirmed that realized gains from these sales will flow through EAD. Fogel also clarified that the number of risk-rated 4 loans decreased because one loan was converted to REO during the quarter after the borrower was unable to keep it current.

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    Christopher Muller's questions to Blackstone Mortgage Trust Inc (BXMT) leadership

    Christopher Muller's questions to Blackstone Mortgage Trust Inc (BXMT) leadership • Q1 2025

    Question

    Christopher Muller of Citizens Capital Markets asked about the impact of recent market volatility on new CLO issuance and whether BXMT might issue another CLO this year. He also inquired about the pace of resolving remaining impaired loans and if the bulk could be cleared in 2025.

    Answer

    CEO Katharine Keenan noted that the CLO market is stabilizing with capital available at wider spreads, and BXMT would consider another issuance if conditions are favorable. On impaired loans, she confirmed that resolving them is a top priority. While timing can be 'chunky', she stated they have a clear path on several assets and expect the positive resolution trajectory to continue through the year.

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    Christopher Muller's questions to Claros Mortgage Trust Inc (CMTG) leadership

    Christopher Muller's questions to Claros Mortgage Trust Inc (CMTG) leadership • Q4 2024

    Question

    Christopher Muller from Citizens JMP asked how aggressive CMTG plans to be in resolving watch list loans and if more loan sales should be expected. He also requested clarification on the fair value write-down of the REO hotel portfolio.

    Answer

    CEO Richard Mack stated the company will be more aggressive in creating liquidity in 2025, even if it requires trade-offs against maximizing value. EVP Priyanka Garg added that in the improving transaction environment, they will use discounted payoffs and short sales more actively. CFO John McGillis explained the hotel portfolio's value mark was primarily driven by uncertainty created by the New York City Safe Hotels Act legislation passed in Q4 2024.

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

    Christopher Muller's questions to Ares Commercial Real Estate Corp (ACRE) leadership • Q4 2024

    Question

    Christopher Muller of Citizens JMP questioned the company's plans for a potential CLO issuance in 2025 and asked if the recent surge in repayments would influence the timing of new lending.

    Answer

    CEO Bryan Donohoe characterized the CLO market as an opportunistic, 'nice-to-have' financing tool, not a necessity. An executive added that current pricing from warehouse lenders is very competitive and represents the most attractive financing option at present. Regarding new lending, Donohoe stated that the strong cash position from repayments works in tandem with resolving problem assets, and together these factors will prompt a return to portfolio growth.

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