Question · Q4 2025
John Nigodimus from BTIG asked for an updated estimate on the potential distributable earnings per quarter that could be unlocked from reinvesting equity currently tied up in non-performing loans and REO, a figure previously estimated at $0.08-$0.12 in early 2025. He also inquired about the drivers behind the updated 2026 guidance for NewPoint's volumes and distributable earnings contribution, noting changes from the September deck.
Answer
CEO Michael Comparato and CFO Jerome Baglien confirmed that the potential earnings figure is likely slightly higher, but the primary challenge remains the timing of unlocking this capital due to slower-than-anticipated resolutions. Regarding NewPoint, they explained that the 2026 earnings contribution guidance was bumped up slightly from 2025 levels, reflecting scaling and the significant impact of integrating FBRT's $10 billion servicing book onto NewPoint, which will drive additional income growth.
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