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    Harsh Hemnani • Green Street

    Harsh Hemnani's questions to Safehold Inc (SAFE) leadership

    Harsh Hemnani's questions to Safehold Inc (SAFE) leadership • Q2 2025

    Question

    Harsh Hemnani inquired if the check size and yield on the quarter's hotel origination differed materially from the average and asked about the timeline for selling one of the Park Hotels assets and renegotiating the other.

    Answer

    Chief Investment Officer Tim Doherty explained the hotel deal was an acquisition of an existing ground lease and was underwritten to meet their target ROA. CEO Jay Sugarman added that it had strong credit metrics and a low LTV, resulting in a slightly tighter yield but still meeting targets. Regarding the Park assets, Jay Sugarman stated it was premature to discuss timelines as they don't control the assets yet but are preparing for the transition.

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    Harsh Hemnani's questions to Safehold Inc (SAFE) leadership • Q1 2025

    Question

    Harsh Hemnani of Green Street inquired about the split of recently closed deals between those with and without an accompanying leasehold loan to understand the certainty provided by the loan. He also asked if the strong LOI pipeline signals a broader recovery in the ground lease market.

    Answer

    Chief Investment Officer Timothy Doherty explained that while deals with a leasehold loan offer more certainty, the vast majority of all LOIs historically close regardless. He also stated that the reduced volatility in interest rates has helped sponsors make decisions, leading to a stronger pipeline, which is a good sign that transaction flow will increase.

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    Harsh Hemnani's questions to Safehold Inc (SAFE) leadership • Q4 2024

    Question

    Harsh Hemnani asked about Safehold's cost of equity, the logic of selling Caret units to fund buybacks if Caret is undervalued, and why the company would prioritize buybacks over growth if it can achieve attractive spreads. He also questioned the long-term UCA potential of affordable housing assets compared to traditional trophy properties.

    Answer

    Chairman and CEO Jay Sugarman explained their cost of capital is benchmarked against long-duration bonds, aiming for a 100+ bps spread. He justified selling Caret units by arguing that realizing some value is better than the zero value the market currently ascribes to it. He positioned the buyback as a tool to address share price dislocation, not a pivot from their primary goal of scaling. Chief Investment Officer Timothy Doherty and Mr. Sugarman defended the UCA potential of affordable housing, citing their high-quality, core locations and strong underlying real estate fundamentals.

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    Harsh Hemnani's questions to Apollo Commercial Real Estate Finance Inc (ARI) leadership

    Harsh Hemnani's questions to Apollo Commercial Real Estate Finance Inc (ARI) leadership • Q2 2025

    Question

    Harsh Hemnani from Green Street Advisors, LLC inquired about the expected near-to-medium-term growth of the loan portfolio and whether incremental growth would be primarily driven by leverage.

    Answer

    President, CEO & Director Stuart Rothstein indicated that portfolio growth is expected to continue as capital is recycled from focus assets and redeployed with three to four turns of leverage. He clarified that funding for this growth will come from both the redeployment of equity (as some focus assets are unlevered or under-levered) and the use of typical leverage on that equity.

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    Harsh Hemnani's questions to Apollo Commercial Real Estate Finance Inc (ARI) leadership • Q1 2025

    Question

    Harsh Hemnani from Green Street asked how ARI intends to fund incremental deployments beyond expected repayments, given the strong year-to-date origination volume. He also questioned if the slowdown in the securitized market is driving more business to ARI.

    Answer

    Executive Stuart Rothstein stated that future deployments will be funded by loan repayments and capital recovered from resolved focus assets, explicitly ruling out equity issuance at current prices. He noted leverage would see a modest, natural increase as this capital is redeployed. Chief Investment Officer Scott Weiner confirmed that disruptions in the U.S. securitized market are increasing inbound inquiries for ARI's balance sheet lending, providing more opportunities for larger deals.

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    Harsh Hemnani's questions to Apollo Commercial Real Estate Finance Inc (ARI) leadership • Q4 2024

    Question

    Harsh Hemnani from Green Street asked about loan spreads on stabilized versus transitional assets, how the company weighs risk appetite in the current market, and whether ARI would consider using the CRE CLO market for financing.

    Answer

    CIO Scott Weiner explained that while loan spreads have tightened, financing spreads have also compressed, allowing ARI to maintain mid-teen returns. He noted that spreads for new loans are generally in the high 2s to low 4s. Weiner emphasized a focus on downside protection and moderate leverage, stating they don't need to chase risk to hit return targets. He also confirmed ARI does not anticipate using the CRE CLO market, preferring the flexibility, borrower privacy, and favorable terms offered by its existing financing partners.

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    Harsh Hemnani's questions to Apollo Commercial Real Estate Finance Inc (ARI) leadership • Q3 2024

    Question

    Harsh Hemnani of Green Street asked about the outlook for loan repayments in Q4 and whether the decrease in the general CECL reserve indicates that most credit issues are now known.

    Answer

    Executive Stuart Rothstein stated that based on current dialogues with borrowers, repayment activity expected in Q4 and early Q1 remains on track. He affirmed that the company feels it has identified its specific credit issues and feels good about the portfolio, aside from the assets on its focus list. The CECL change is partly a mathematical result of repayments outpacing originations.

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    Harsh Hemnani's questions to Two Harbors Investment Corp (TWO) leadership

    Harsh Hemnani's questions to Two Harbors Investment Corp (TWO) leadership • Q2 2025

    Question

    Harsh Hemnani from Green Street Advisors, LLC asked about Two Harbors' financing strategy, specifically seeking the rationale behind issuing an unsecured baby bond this quarter rather than relying on repo financing.

    Answer

    William Dellal, VP & CFO, explained that the primary reason for the unsecured baby bond issuance was to pre-finance the upcoming maturity of the company's convertible notes. He noted this was the main driver of the change in financing structure for the quarter.

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    Harsh Hemnani's questions to Two Harbors Investment Corp (TWO) leadership • Q1 2025

    Question

    Harsh Hemnani of Green Street Advisors, LLC asked if elevated market volatility and the portfolio's negative convexity have necessitated increased hedging that could affect static return estimates. He also inquired if the 'up-in-coupon' bias remains as the firm adds back spread exposure.

    Answer

    Chief Investment Officer Nick Letica acknowledged that higher realized volatility increases convexity costs but stated that wider spreads offer compensation, mitigating the impact. He confirmed the firm's strategy is to keep risk tight. Letica also affirmed that the 'up-in-coupon' bias remains the preferred strategy, as lower coupon MBS trade in a highly technical and less intuitive manner.

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    Harsh Hemnani's questions to Two Harbors Investment Corp (TWO) leadership • Q3 2024

    Question

    Harsh Hemnani of Green Street Advisors, LLC inquired about the projected long-term recapture rate for the RoundPoint platform and asked for the company's view on the relative investment value between MSRs and the securities portfolio.

    Answer

    President and CEO Bill Greenberg stated it's too soon to project long-term recapture rates as the DTC channel is still scaling up, though they aim for industry-level rates. Chief Investment Officer Nicholas Letica commented that currently, the mortgage securities side looks very attractive due to recent spread widening. However, from a longer-term perspective, the company continues to favor its MSR assets for their stable cash flows and favorable risk-reward profile.

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    Harsh Hemnani's questions to AGNC Investment Corp (AGNC) leadership

    Harsh Hemnani's questions to AGNC Investment Corp (AGNC) leadership • Q2 2025

    Question

    Harsh Hemnani of Green Street Advisors, LLC asked about leverage rebalancing triggers in shock scenarios and whether increased certainty from GSE reform would allow for higher leverage.

    Answer

    Peter Federico, President, CEO & CIO, explained that during Q2's volatility, AGNC rebalanced risk by raising accretive capital rather than selling assets, which preserves long-term value. He confirmed that increased confidence in the market outlook does inform their view on leverage. However, he emphasized that the current leverage of ~7.5x already provides a 'perfect combination' of attractive returns and significant risk management capacity.

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    Harsh Hemnani's questions to AGNC Investment Corp (AGNC) leadership • Q1 2025

    Question

    Harsh Hemnani asked for the rationale behind potentially reducing swap-based hedges at a time when mortgage-to-swap spreads appear unsustainably wide and attractive.

    Answer

    Peter Federico, President, CEO, and CIO, clarified that considering a more balanced hedge portfolio is a long-term strategic thought process focused on diversification and risk management. He emphasized that no changes have been made and that, in the short run, AGNC will continue to capitalize on the attractive carry offered by mortgages versus swaps.

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    Harsh Hemnani's questions to AGNC Investment Corp (AGNC) leadership • Q4 2024

    Question

    Harsh Hemnani asked about the potential risks to AGNC's base case that Agency MBS spreads will remain within their recent trading range, inquiring about catalysts that could drive spreads either significantly wider or tighter.

    Answer

    Peter Federico, Director, President and CEO, identified two primary risks that could widen spreads: a sharp increase in interest rate volatility and uncertainty surrounding GSE reform. Christopher Kuehl, EVP and CIO, added that on the other side, stronger-than-anticipated bank demand or increased overseas investment could be catalysts for spreads to tighten. However, their base case remains for spreads to stay in a stable, attractive range.

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    Harsh Hemnani's questions to AGNC Investment Corp (AGNC) leadership • Q3 2024

    Question

    Harsh Hemnani from Green Street asked for an explanation for the significant increase in the portfolio's expected life CPR, given management's outlook for mortgage rates to remain elevated. He also inquired if the portfolio would continue to shift towards higher coupons.

    Answer

    Peter Federico, President and CEO, clarified that the projected lifetime CPR was calculated based on the lower prevailing and forward interest rates that existed at the end of Q3. He also confirmed that given the current rate environment, the company's strategic inclination is to move back up in coupon, which would likely cause the portfolio's average coupon to rise in the coming quarters.

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    Harsh Hemnani's questions to Blackstone Mortgage Trust Inc (BXMT) leadership

    Harsh Hemnani's questions to Blackstone Mortgage Trust Inc (BXMT) leadership • Q1 2025

    Question

    Harsh Hemnani of Green Street asked if the types of borrowers and their business plans have shifted post-tariff announcements, particularly if they are less 'heavy transitional'. He also inquired about changes in new loan spreads and whether BXMT is benefiting from widening asset spreads while financing costs remain stable due to the new CLO.

    Answer

    EVP of Investments Austin Pena confirmed a trend toward lighter value-add business plans, which predated recent tariff news but is now reinforced by it. He noted that asset-side lending spreads are wider by 10-20 bps, but financing costs have moved similarly. CEO Katharine Keenan added that reduced new supply from higher construction costs fundamentally benefits the value of their existing collateral.

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    Harsh Hemnani's questions to Blackstone Mortgage Trust Inc (BXMT) leadership • Q4 2024

    Question

    Harsh Hemnani asked about the company's willingness to expand its office loan portfolio and if there was a target exposure level. He also inquired how the net lease strategy would affect long-term leverage.

    Answer

    EVP of Investments Austin Pena and CEO Katharine Keenan explained that while the bar for new office lending is high, they will pursue selective opportunities on high-quality assets, but expect overall office exposure to decline. Keenan added that the net lease strategy is fundamentally lower-levered and will be a positive for the company's overall leverage profile.

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    Harsh Hemnani's questions to Blackstone Mortgage Trust Inc (BXMT) leadership • Q3 2024

    Question

    Harsh Hemnani of Green Street asked how the company weighs deploying capital into new loans versus share buybacks, particularly as lending spreads appear to be tightening. He also questioned if BXMT is incorporating higher SOFR floors into its new loan originations given the uncertain path of rate cuts.

    Answer

    CEO Katie Keenan explained that the company strategically allocates capital and did "all of the above" in the last quarter. She emphasized that new originations are highly attractive, with 60% LTVs and mid-teens levered returns. Keenan clarified that while asset spreads have tightened, financing costs have also decreased, keeping the net spread attractive. She confirmed that adding SOFR floors is a "huge focus" for both new loans and modifications.

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    Harsh Hemnani's questions to Annaly Capital Management Inc (NLY) leadership

    Harsh Hemnani's questions to Annaly Capital Management Inc (NLY) leadership • Q4 2024

    Question

    Harsh Hemnani from Green Street inquired about the outlook for the arbitrage between whole loan spreads and securitization spreads in residential credit. He also asked about the rationale for reducing capital allocation to Agency MBS despite its perceived attractiveness.

    Answer

    Co-CIO Mike Fania described the whole loan market as efficient, with acquisition spreads moving in tandem with securitization execution. He noted competition is primarily from PE and REITs, not yet dominated by insurance companies. CEO David Finkelstein explained the lower agency allocation was a temporary result of positioning for a resi transaction and MSR onboarding, confirming the marginal dollar still favors Agency MBS.

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    Harsh Hemnani's questions to Annaly Capital Management Inc (NLY) leadership • Q4 2024

    Question

    Harsh Hemnani from Green Street inquired about the spread between whole loan acquisition costs and securitization execution in the residential credit market. He also asked about the rationale for reducing capital allocation to Agency MBS despite its perceived attractiveness.

    Answer

    Co-CIO Michael Fania noted the whole loan market is efficient, with acquisition spreads moving in tandem with securitization spreads. CEO David Finkelstein addressed capital allocation, explaining that the decrease in Agency was due to capital being positioned for a residential credit securitization and a pending MSR purchase. He affirmed that, on the margin, new capital would still be deployed into Agency MBS.

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