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CEO Laurence Penn described the new HELOC as a unique product with good potential but declined to offer projections. Regarding the dividend, Penn expressed confidence in continued coverage by earnings and stated the next move would likely be up, though the board values stability and would not make such a decision lightly. CFO JR Herlihy confirmed no quarter-to-date book value was provided but noted Q3 was off to a strong start.

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CEO Laurence Penn expressed satisfaction with the execution of their reverse mortgage securitizations, noting they have repeat buyers. Co-Chief Investment Officer Mark Tecotzky projected a pace of 4-6 non-QM securitizations for the upcoming year. He further explained that the HELOC and second lien sectors represent a significant opportunity, where EFC will apply its non-QM playbook: acquiring loans for levered net interest margin, followed by securitizing them to lock in favorable, non-recourse financing while retaining high-yielding tranches and valuable call rights.

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CEO Tamir Poleg stated that meaningful ancillary adoption will be driven by product enhancements, not just traditional sales efforts. He noted the strategic shift to state-based title JVs is showing encouraging signs. CFO Ravi Jani clarified current attach rates are 4% for title and 1% for mortgage. Regarding RealWallet, Tamir Poleg explained the U.S. lending product will roll out in stages and pointed to the $4 million in credit extended in Canada as an indicator of potential demand, given the U.S. agent base is ten times larger.

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CEO Tamir Poleg confirmed the agent pipeline remains strong with no significant change in onboarding times. He also explained the company is not currently focused on expanding ancillary services to all 50 states, but rather on improving service and execution in existing markets, noting a strategic pivot to statewide JVs for title. CFO Ravi Jani added that investments in the agent success team have smoothed the onboarding process for larger teams.

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Chairman and CEO Tamir Poleg stated that Real Wallet, which soft-launched in late 2024, has not been heavily marketed yet. He expects adoption to grow with the rollout of new features like tax accounts and U.S. credit lines, anticipating a move from 2,500 to 5,000 agents in the next few months. CFO Michelle Ressler specified that the wallet is a high-margin business at around 90% gross margin. Regarding OpEx, she noted that while it will grow in 2025 due to investments, the company remains focused on growing gross profit at a faster rate and driving profitability.

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Chairman and CEO Tamir Poleg stated that the long-term goal is to achieve double-digit attach rates for ancillary services, a significant increase from the current low single-digit levels. He explained that the new AI-powered tools, Leo Copilot and Leo for Clients, are expected to be the primary drivers of this increase, with a more meaningful impact anticipated in the second half of 2025. He believes Real's integrated technology platform can ultimately surpass industry benchmarks for ancillary attachment.

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Executive Chairman George Zoley stated that while the company's preference is to own and reactivate its own high-quality idle facilities, they are prepared for other opportunities. CEO David Donahue added that The GEO Group has entered into teaming agreements with an established Department of Defense contractor to position the company to pursue potential procurements for operational support services at military or other government sites.

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Executive Chairman George Zoley explained that the Lake & Riley Act mandates detention, with the ISAP monitoring program serving as the alternative for those who cannot be detained. He confirmed an initial preference for higher-security ankle monitors and stated that the company has not identified any significant supply chain issues. CFO Mark Suchinski and Zoley clarified that approximately $250 million of the projected $800 million to $1 billion in incremental revenue is expected from the monitoring segment, contingent on participant counts rising significantly.

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Mark Fogel, President, CEO & Director, reiterated the company's goal to grow the portfolio by $300 million to $500 million by year-end, funded by loan payoffs and REO sales. He acknowledged that while spreads are compressed in certain sectors like Class A multifamily, ACRES can still find opportunities in other areas to achieve its target ROE.

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Mark Fogel, President and CEO, confirmed the payoffs were expected and resulted from refinancings and asset sales, indicating a healthy portfolio. He reiterated expectations for $300 million to $500 million in net portfolio growth for the year, driven by a strong pipeline in multifamily as well as other asset classes like student housing and self-storage.

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President and CEO Mark Fogel confirmed expectations for additional loan payoffs and projected the portfolio would grow from $1.5 billion to a range of $1.8 billion to $2.0 billion by year-end, citing strong activity in multifamily, hospitality, and self-storage. Chairman Andrew Fentress added that new CLO structures will feature a revolving period of at least 24 months to facilitate future loan originations.

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Michael Comparato, President, confirmed that originations have resumed and will ramp up as the company calls its CLOs. Jerome Baglien, CFO & COO, stated the target portfolio size is around $5 billion, achieved by deploying an additional $500 million+ in net originations. Comparato noted that credit spreads are 100-125 basis points tighter than a year ago due to a "deluge of liquidity" in the market.

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President Michael Comparato confirmed that capital from REO sales would be proactively redeployed into new originations. CFO Jerome Baglien attributed higher Q1 expenses to a "double whammy" of NewPoint transaction costs and ongoing REO-related expenses. Comparato added that REO assets are evaluated case-by-case to maximize recovery, with a primary goal of redeploying capital to restore earnings power.

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Michael Comparato, President, explained that floating rate credit spreads have likely tightened as much as they reasonably can, but whole dollar coupons remain attractive due to higher base rates. He noted that liability-side spreads are tightening in lockstep. Jerome Baglien, CFO & COO, clarified that the rise in 'other expenses' is primarily due to REO flow-through costs, which are largely offset by REO income and should be modeled based on the pace of REO asset sales.

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President Michael Comparato explained that while the conduit business had an exceptional Q3, the recent rapid rise in interest rates will likely cause a temporary pause as investors digest the move. He noted that CMBS remains a cheap financing option. Regarding the available-for-sale securities, he stated that while they are a form of liquidity management, the returns are currently too strong to justify selling them, as they outperform potential whole loan originations.

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President & CEO John Albright described the current leasing environment as strong, with a focus on simpler deals with creditworthy, household-name tenants. He expressed confidence in future rent recognition, noting that low in-place rents on expiring leases present mark-to-market opportunities rather than risks. He also confirmed the unfunded commitment amount and highlighted a construction loan property as a 'shadow acquisition pipeline' opportunity.

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Executive John Albright explained that reaching the high end of investment guidance would be driven by a combination of strong leasing activity, more properties coming to market, and future asset recycling. He confirmed that acquisitions would initially be funded via the credit facility, noting strong bank support and the ability to term out borrowings to quickly restore liquidity.

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Executive John Albright explained that CTO is in negotiations with several large, complementary tenants for the 10 acres it owns, with a deal expected within three months and earnings contribution targeted for late 2026 or 2027. He also stated there is a high likelihood that CTO will exercise its right of first refusal to acquire the neighboring Whole Foods development, as it is a strong complement to The Collection.

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John Albright, President & CEO, responded that structured loan investments appear more imminent than property acquisitions due to a competitive market. He confirmed that proceeds from loan payoffs and asset sales are used to pay down the credit facility to maintain reasonable leverage while pursuing new accretive investments.

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John Albright, an executive, stated that the company is not currently seeing any significant disruption from tariff issues on tenant activity or deal flow, noting that many tenants like restaurants are insulated. He explained that reaching the high end of guidance would be catalyzed by the successful disposition of two non-income-producing assets, a Party City and a theater in Reno, which would free up capital for reinvestment or debt reduction.

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CEO John Albright responded that property acquisition cap rates are averaging close to 8%, though the company did acquire a lower-cap-rate Lowe's to enhance portfolio quality and diversification. He confirmed that the 'barbell' strategy of pursuing both stable, investment-grade assets and higher-yielding opportunities, including loans, will 'absolutely' continue in 2025.

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Executive Philip Mays responded that transaction activity is not concentrated in any single geography but is prevalent in major states like Texas and Florida, where pricing can be competitive due to 1031 buyer demand. Executive John Albright added that while they are not currently seeing specific acquisition opportunities arising from the hurricanes, they are actively monitoring the market for any unique circumstances that may emerge.

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Co-CIO & Head of Residential Credit Mike Fania stated that the capital markets for non-agency securitizations remain robust and healthy, noting a recent transaction priced at the tightest levels post-volatility. While not providing specific margin figures, he indicated returns are in the mid-teens on deployed capital. Fania acknowledged that while tightening credit may have moderated growth, the company is comfortable with its current ~15% market share and volume run-rate.

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Co-CIO Mike Fania confirmed that the non-agency securitization market remains robust and healthy, citing recent tight pricing on a transaction. While not providing specific margin figures, he explained their model targets mid-teens returns on deployed capital and expressed comfort with their current origination volumes and market share.

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Co-CIO Michael Fania highlighted that Annaly's competitive advantages are its certainty of execution and stable capital, which appeal to correspondent lenders, particularly large non-banks. He stated they expect a HELOC transaction in Q1 but see the closed-end second lien market as highly competitive on price, with their primary focus remaining on first-lien non-QM and DSCR loans.

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Co-CIO Mike Fania highlighted their competitive advantages: certainty of execution, stable capital, robust infrastructure, and strong relationships with large non-bank originators. He confirmed they expect a HELOC transaction in Q1 but view the closed-end second lien market as highly competitive, with their primary focus remaining on first-lien non-QM and DSCR loans.

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Co-CIO Desmond Macauley cited spread attractiveness, market volatility, and liquidity conditions as key factors. With spreads wide and conditions stable, he noted they are comfortable with a modest increase. CEO Scott Ulm added that while they avoid 'big bets,' greater market stability could justify higher leverage. Co-CIO Sergey Losyev mentioned increased bank demand for MBS as a potential major catalyst.

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EVP and COO Julie Stephenson explained that the company closely monitors trends, with current rates exceeding their view of net loss trends, providing a cushion. EVP and CFO Eric Martin detailed that the expense ratio was elevated by about one point due to final costs for a new policy administration system, which will not recur. He also cited investments in talent and higher agent performance compensation, noting that future premium growth will provide leverage against fixed costs, helping to normalize the ratio over time.

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CFO Brandon Filson stated that the securitization freed up capital for another $100-$150 million in loan purchases over the next couple of quarters. He noted that current loan coupons are in the high 7% range, range-bound between 7% and 8%, and that they have sufficient capital for these acquisitions before needing to do another commingled securitization.

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Chief Financial Officer Brandon Filson explained that the '21-'23 vintages, with coupons around 5.25%, are well-insulated and would require a significant rate drop of 150-200 basis points to trigger major prepayments. He noted that re-securitizing older deals could lift yields to around 15%. Filson also provided a quarter-to-date book value update, stating it was up approximately 3% net of the dividend as of late February.

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CFO Brandon Filson stated that the company targets about one securitization per quarter, around $300 million in size. He confirmed the October deal had strong execution with a sub-5.5% cost of funds, where AOMR retained the IO position and other unrated bonds. CEO Sreeniwas Prabhu added that the non-QM securitization market remains strong. Filson noted that while asset coupons will fluctuate with rates, they expect to maintain a 15% to 20% ROE on a levered, securitized basis.

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President Nicholas Mah clarified the 10% payoff figure for the multifamily mezzanine portfolio was year-to-date as of early April and that he expects robust payoff rates to continue in 2025. For capital allocation, Mah highlighted a near-term preference for Agency RMBS but emphasized maintaining flexibility, stating that a specific long-term target is difficult to set in the current market and decisions will be based on the best available risk-adjusted returns.

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CEO Jason Serrano detailed that two Florida assets are currently being marketed for sale, while two Texas assets will be held longer to realize value from recent occupancy improvements before a sale later in the year. He also stated that capital from the running-off mezzanine portfolio would be reallocated with a higher allocation to the Agency RMBS market over residential credit, reversing the trend from the previous quarter.

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Peter Federico, President, CEO, and CIO, stated that capital was deployed around January into mortgages concentrated in the 5% and 5.5% coupon area. He said AGNC continues to favor the intermediate part of the coupon stack for its prepayment protection and carry. He also noted that improving TBA dollar roll financing could lead to holding more TBAs.

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Head of Corporate Credit Gregory Borenstein explained the portfolio has already shifted from mezzanine debt to new-issue equity and would only pivot back to mezz if a more significant market sell-off occurred. CEO Laurence Penn stated that an initial leverage of half a turn (0.5x) is a reasonable estimate, with potential to increase it later by accessing the unsecured note market, which offers better terms for closed-end funds.

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Executive David Spector stated that while it's early to predict policy changes, PMT is prepared for various outcomes. He expressed excitement about the current opportunity to organically create investments through private label securitizations of investor and second home loans, driven by favorable market conditions. Spector also mentioned plans for a jumbo loan securitization and a bullish outlook on PMT's growth potential.

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CBO Anthony Kim responded that future sales depend on market conditions. He noted that in 2024, the company sold $88.4 million in residential mortgage loans with premiums ranging from 2.0% to 2.4%. He stated that Hanmi will continue to explore opportunities to sell a similar volume in 2025.

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Executive Bonita Lee clarified that the nonaccrual loan held for sale was sold post-quarter-end with no expected further loss, as it was fully reserved. She confirmed future sales would likely continue in the residential mortgage space. CFO Romolo Santarosa added that gain-on-sale premiums have been stable for both SBA and residential loans, and the strategy is aimed at diversifying revenue streams rather than solely managing the loan-to-deposit ratio.

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