Latest news with #CECL
Hans India
29-05-2025
- Business
- Hans India
How Ashok Choppadandi's Data Architecture Transformed a $28B Financial Institution
In today's hyper-competitive financial landscape, data is more than a business asset—it's a strategic differentiator. Few embody this principle better than Ashok Choppadandi, whose architectural leadership at a $28 billion U.S. regional bank catalysed one of the most transformative digital journeys in modern banking. Before Choppadandi's involvement, the bank was grappling with deep-rooted inefficiencies: over 40 fragmented systems across business lines, inconsistent customer experiences, and compliance processes riddled with manual effort. 'The bank had accumulated a patchwork of legacy systems through years of growth and acquisitions,' Choppadandi recalls. 'This created blind spots that affected everything from customer service to regulatory compliance.' Recognising the urgent need for change, Choppadandi led the design and implementation of a cloud-native, intelligent data ecosystem that would redefine both the institution's internal operations and its external reputation. Built on Snowflake, AWS S3, and Kafka, with business-specific data marts and governed by Collibra and Coalesce low-code ELT tooling, the new architecture was a leap toward real-time, customer-centric banking. 'We designed the system with both current and future requirements in mind,' he explains. 'It had to meet regulatory frameworks like CECL, AML, and Basel III, but also empower agile decision-making and customer personalisation.' At the core of this transformation was Data Vault 2.0 modeling, enabling a flexible and scalable data warehouse. Kafka streaming pipelines delivered real-time insights across functions, while an ambitious data governance initiative enforced over 1,500 data quality rules and complete lineage mapping. But perhaps the most pioneering element was Choppadandi's application of Data Reliability Engineering (DRE). 'We treated data platforms as living environments,' he says. 'Our self-healing architecture could detect and resolve anomalies before they affected operations, driving resiliency and trust.' The results were nothing short of extraordinary. A unified Customer 360 platform enhanced relationship banking, regulatory reviews found zero compliance gaps, and platform resiliency soared. Real-time insights accelerated decisions across departments, and automated governance reduced both risk and cost. The transformation's impact extended well beyond the institution. 'The solutions we developed weren't just about one bank,' Choppadandi reflects. 'We were creating blueprints that address industry-wide challenges—trust, transparency, compliance, and customer focus.' Today, those architectural patterns are part of peer-reviewed publications and industry reference models, establishing Choppadandi as a thought leader in financial data innovation. His work didn't just change one bank's future—it helped define a new era for data-driven banking.
Business Wire
07-05-2025
- Business
- Business Wire
Claros Mortgage Trust, Inc. Reports First Quarter 2025 Results
NEW YORK--(BUSINESS WIRE)--Claros Mortgage Trust, Inc. (NYSE: CMTG) (the 'Company' or 'CMTG') today reported its financial results for the quarter ended March 31, 2025. The Company reported GAAP net loss of $78.6 million, or $0.56 per share, for the quarter ended March 31, 2025. Distributable Loss (a non-GAAP financial measure defined below) was $35.7 million, or $0.25 per share, and Distributable Earnings prior to realized losses were $11.6 million, or $0.08 per share, for the quarter ended March 31, 2025. $5.9 billion loan portfolio with a weighted average all-in yield of 7.4%. Received $316 million of loan repayment and sale proceeds, including two fully realized loans. Subsequent to quarter-end, received $291 million of loan repayment proceeds, including three fully realized loans, of which two were risk rated 5. Total liquidity of $136 million, including $128 million of cash. Unencumbered loan UPB of $468 million, including $223 million classified as held-for-sale. Closed a new financing facility with $214 million of capacity. Provision for CECL reserves approximated $41.1 million, or $0.29 per share, for the quarter; as of quarter end, CECL reserves of $1.83 per share. CECL reserve stands at 4.4% of UPB, comprised of (i) specific reserves of 16.4% on risk rated 5 loans and (ii) general reserves of 2.7% on remaining loans. Valuation adjustment for loan receivable held-for-sale of ($42.6) million, or ($0.30) per share, for the quarter. Book value of $13.60 per share. 'Since the start of 2025, we have made strong progress on our stated objectives of enhancing liquidity, reducing leverage and beginning to resolve our watchlist loans,' said Richard Mack, Chief Executive Officer and Chairman of CMTG. 'Both during and subsequent to the first quarter, we resolved or received payment on several loans totaling $607 million while also reducing our exposure to land, office and hospitality assets, sectors that continue to be challenged. We remain committed to furthering our progress while navigating a highly complex macroeconomic environment.' Teleconference Details A conference call to discuss CMTG's financial results will be held on Thursday, May 8, 2025, at 10:00 a.m. ET. The conference call may be accessed by dialing 1-833-470-1428 and referencing the Claros Mortgage Trust, Inc. teleconference call; access code 926132. The conference call will also be broadcast live over the internet and may be accessed through the Investor Relations section of CMTG's website at An earnings presentation accompanying the earnings release and containing supplemental information about the Company's financial results may also be accessed through this website in advance of the call. For those unable to listen to the live broadcast, a webcast replay will be available on CMTG's website or by dialing 1-866-813-9403, access code 384101, beginning approximately two hours after the event. About Claros Mortgage Trust, Inc. CMTG is a real estate investment trust that is focused primarily on originating senior and subordinate loans on transitional commercial real estate assets located in major markets across the U.S. CMTG is externally managed and advised by Claros REIT Management LP, an affiliate of Mack Real Estate Credit Strategies, L.P. Additional information can be found on the Company's website at Forward-Looking Statements Certain statements contained in this press release may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. CMTG intends for all such forward-looking statements to be covered by the applicable safe harbor provisions for forward-looking statements contained in those acts. Such forward-looking statements can generally be identified by CMTG's use of forward-looking terminology such as 'may,' 'will,' 'expect,' 'intend,' 'anticipate,' 'estimate,' 'believe,' 'continue,' 'seek,' 'objective,' 'goal,' 'strategy,' 'plan,' 'focus,' 'priority,' 'should,' 'could,' 'potential,' 'possible,' 'look forward,' 'optimistic,' or other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Such statements are subject to certain risks and uncertainties, including known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of CMTG's performance in future periods. Except as required by law, CMTG does not undertake any obligation to update or revise any forward-looking statements contained in this release. Definitions Distributable Earnings (Loss): Distributable Earnings (Loss) is a non-GAAP measure used to evaluate our performance excluding the effects of certain transactions, non-cash items and GAAP adjustments, as determined by our Manager. Distributable Earnings (Loss) is a non-GAAP measure, which the Company defines as net income (loss) in accordance with GAAP, excluding (i) non-cash stock-based compensation expense, (ii) real estate owned held-for-investment depreciation and amortization, (iii) any unrealized gains or losses from mark-to-market valuation changes (other than permanent impairments) that are included in net income (loss) for the applicable period, (iv) one-time events pursuant to changes in GAAP and (v) certain non-cash items, which in the judgment of our Manager, should not be included in Distributable Earnings (Loss). Furthermore, the Company presents Distributable Earnings prior to realized gains and losses, which such gains and losses include charge-offs of principal, accrued interest receivable, and/or exit fees as the Company believes this more easily allows our Board, Manager, and investors to compare our operating performance to our peers, to assess our ability to declare and pay dividends, and to determine our compliance with certain financial covenants. Pursuant to the Management Agreement, we use Core Earnings, which is substantially the same as Distributable Earnings (Loss) excluding incentive fees, to determine the incentive fees we pay our Manager. The Company believes that Distributable Earnings (Loss) and Distributable Earnings prior to realized gains and losses provide meaningful information to consider in addition to our net income (loss) and cash flows from operating activities in accordance with GAAP. Distributable Earnings (Loss) and Distributable Earnings prior to realized gains and losses do not represent net income (loss) or cash flows from operating activities in accordance with GAAP and should not be considered as an alternative to GAAP net income (loss), an indication of our cash flows from operating activities, a measure of our liquidity or an indication of funds available for our cash needs. In addition, the Company's methodology for calculating these non-GAAP measures may differ from the methodologies employed by other companies to calculate the same or similar supplemental performance measures and, accordingly, the Company's reported Distributable Earnings (Loss) and Distributable Earnings prior to realized gains and losses may not be comparable to the Distributable Earnings (Loss) and Distributable Earnings prior to realized gains and losses reported by other companies. In order to maintain the Company's status as a REIT, the Company is required to distribute at least 90% of its REIT taxable income, determined without regard to the deduction for dividends paid and excluding net capital gain, as dividends. Distributable Earnings (Loss), Distributable Earnings prior to realized gains and losses, and other similar measures, have historically been a useful indicator over time of a mortgage REIT's ability to cover its dividends, and to mortgage REITs themselves in determining the amount of any dividends to declare. Distributable Earnings (Loss) and Distributable Earnings prior to realized gains and losses are key factors, among others, considered by our Board in determining the dividend each quarter and as such the Company believes Distributable Earnings (Loss) and Distributable Earnings prior to realized gains and losses are also useful to investors. While Distributable Earnings (Loss) excludes the impact of our provision for or reversal of current expected credit loss reserve, charge-offs of principal, accrued interest receivable, and/or exit fees are recognized through Distributable Earnings (Loss) when deemed non-recoverable. Non-recoverability is determined (i) upon the resolution of a loan (i.e., when the loan is repaid, fully or partially, when the Company acquires title in the case of foreclosure, deed-in-lieu of foreclosure, or assignment-in-lieu of foreclosure, or when the loan is sold or anticipated to be sold for an amount less than its carrying value), or (ii) with respect to any amount due under any loan, when such amount is determined to be uncollectible. 1. For the three months ended March 31, 2025, amount includes a $3.5 million charge-off of accrued interest receivable and a $0.5 million charge-off of an exit fee related to the discounted payoff of a land loan. 2. Reflects total gain on foreclosure of our hotel portfolio real estate owned asset, which was classified as real estate owned held-for-sale as of December 31, 2024. Amount not previously recognized in Distributable Earnings (Loss). 3. Reflects previously recognized depreciation on real estate owned classified as held-for-sale as of December 31, 2024. Amount not previously recognized in Distributable Earnings (Loss). Expand
Business Wire
06-05-2025
- Business
- Business Wire
Granite Point Mortgage Trust Inc. Reports First Quarter 2025 Financial Results and Post Quarter-End Update
NEW YORK--(BUSINESS WIRE)-- Granite Point Mortgage Trust Inc. (NYSE: GPMT) ("GPMT," "Granite Point" or the "Company") today announced its financial results for the quarter ended March 31, 2025, and provided an update on its activities subsequent to quarter-end. An earnings supplemental containing first quarter 2025 financial results can be viewed at 'We started 2025 on a strong note and made significant progress in achieving our objectives,' said Jack Taylor, President and Chief Executive Officer of GPMT. 'So far this year, we have resolved three risk-rated 5 loans, with a fourth closing imminently, totaling approximately $230 million, leaving three remaining. We also received four full loan repayments and partial paydowns, totaling approximately $107 million, three of which were full paydowns secured by office properties. Also, we continue to believe that our stock is significantly undervalued, and, accordingly, we repurchased about 0.9 million of our common shares during the first quarter.' Activity Recognized GAAP net (loss) attributable to common stockholders of $(10.6) million, or $(0.22) per basic common share, inclusive of provision for credit losses of $(3.8) million, or $(0.08) per basic common share. Distributable Earnings (Loss) (1) of $(27.7) million or $(0.57) per basic share. Distributable Earnings (Loss) (1) Before Realized Gains and Losses of $(3.0) million, or $(0.06) per basic share. Book value per common share was $8.24, inclusive of $(3.72) per common share of total CECL reserve. Declared common stock dividend of $0.05 per common share and a cash dividend of $0.4375 per share of its Series A preferred stock. Net loan portfolio activity of $(161.4) million in unpaid principal balance. Two full loan repayments and partial repayments of $(74.5) million. Two resolutions of $(97.4) million, inclusive of write-offs $(24.6) million. Fundings of $10.5 million. Carried at quarter-end a 98% floating rate loan portfolio with $2.0 billion in total loan commitments comprised of over 99% senior loans, with a portfolio weighted average stabilized LTV at origination 64.5% (2) and a realized loan portfolio yield (3) of 6.8%. Weighted average loan portfolio risk-rating was 3.0. Total CECL reserve of $180.2 million, or 8.8% of total loan portfolio commitments. Held three REO (4) properties with an aggregate carrying value of $123.8 million (5). Repurchased approximately 0.9 million common shares at an average price of $2.84 per share for a total of $2.5 million, resulting in book value accretion of $0.10 per share. Ended the quarter with $85.7 million in unrestricted cash and Total Leverage Ratio (6) of 2.2x, with no corporate debt maturities remaining. Post Quarter-End Update In April, extended the maturities of all repurchase facilities by approximately one year. Expect to close imminently the resolution of a loan secured by a hotel property located in Minneapolis, MN. As of March 31, 2025, the loan was on nonaccrual status with an unpaid principal balance of $52.2 million and risk rating of '5'. The loan will be bifurcated into a senior and subordinate note structure, and the Company expects to realize a write-off of approximately $(15.4) million, which had been reserved for through a previously recorded allowance for credit losses. In May, resolved a loan secured by a mixed-use office and retail property located in Baton Rouge, LA. As of March 31, 2025, the loan was on nonaccrual status with an unpaid principal balance of $79.9 million and risk rating of '5'. As a result of the property sale, the Company expects to realize a write-off of approximately $(21.5) million, which had been reserved for through a previously recorded allowance for credit losses. So far in Q2'25, funded about $3.0 million on existing loan commitments and realized full repayments on two loans secured by office properties for a combined $32.1 million. As of May 5, 2025, carried approximately $86.3 million in unrestricted cash. (1) Please see page 5 for Distributable Earnings (Loss) and Distributable Earnings (Loss) Before Realized Gains and Losses definitions and a reconciliation of GAAP to non-GAAP financial information. (2) The fully funded loan amount (plus any financing that is pari passu with or senior to such loan), including all contractually provided for future fundings, divided by the as stabilized value (as determined in conformance with USPAP) set forth in the original appraisal. As stabilized value may be based on certain assumptions, such as future construction completion, projected re-tenanting, payment of tenant improvement or leasing commissions allowances or free or abated rent periods, or increased tenant occupancies. (3) Provided for illustrative purposes only. Calculations of realized loan portfolio yield are based on a number of assumptions (some or all of which may not occur) and are expressed as monthly equivalent yields that include net origination fees and exit fees and exclude future fundings and any potential or completed loan amendments or modifications. Portfolio yield includes nonaccrual loans. (4) REO represents "Real Estate Owned". (5) Includes $9.3 million in other assets and liabilities related to leases. (6) Borrowings outstanding on repurchase facilities, secured credit facility and CLO's, less cash, divided by total stockholders' equity. Expand Conference Call Granite Point Mortgage Trust Inc. will host a conference call on May 7, 2025, at 11:00 a.m. ET to discuss first quarter 2025 financial results and related information. To participate in the teleconference, please call toll-free (877) 407-8031, (or (201) 689-8031 for international callers), approximately 10 minutes prior to the above start time, and ask to be joined into the Granite Point Mortgage Trust Inc. call. You may also listen to the teleconference live via the Internet at in the Investor section under the News & Events link. For those unable to attend, a telephone playback will be available beginning May 7, 2025, at 12:00 p.m. ET through May 21, 2025, at 12:00 a.m. ET. The playback can be accessed by calling (877) 660-6853 (or (201) 612-7415 for international callers) and providing the Access Code 13752795. The call will also be archived on the Company's website in the Investor section under the News & Events link. About Granite Point Mortgage Trust Inc. Granite Point Mortgage Trust Inc. is a Maryland corporation focused on directly originating, investing in and managing senior floating rate commercial mortgage loans and other debt and debt-like commercial real estate investments. Granite Point is headquartered in New York, NY. Additional information is available at Forward-Looking Statements This press release contains, or incorporates by reference, not only historical information, but also forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve numerous risks and uncertainties. Our actual results may differ from our beliefs, expectations, estimates, projections and illustrations and, consequently, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements are not historical in nature and can be identified by words such as 'anticipate,' 'estimate,' 'will,' 'should,' 'expect,' 'target,' 'believe,' 'outlook,' 'potential,' 'continue,' 'intend,' 'seek,' 'plan,' 'goals,' 'future,' 'likely,' 'may' and similar expressions or their negative forms, or by references to strategy, plans or intentions. The illustrative examples herein are forward-looking statements. By their nature, forward-looking statements speak only as of the date they are made, are not statements of historical facts or guarantees of future performance and are subject to risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify. Our expectations, beliefs and estimates are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs and estimates will prove to be correct or be achieved, and actual results may vary materially from what is expressed in or indicated by the forward-looking statements. These forward-looking statements are subject to risks and uncertainties, including, among other things, those described in our Annual Report on Form 10-K for the year ended December 31, 2024, under the caption 'Risk Factors,' and any subsequent Form 10-Q or other filings made with the SEC. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise. This press release is for informational purposes only and shall not constitute, or form a part of, an offer to sell or buy or the solicitation of an offer to sell or the solicitation of an offer to buy any securities. Non-GAAP Financial Measures In addition to disclosing financial results calculated in accordance with United States generally accepted accounting principles (GAAP), this press release and the accompanying earnings presentation present non-GAAP financial measures, such as Distributable Earnings (Loss), Distributable Earnings (Loss) Before Realized Gains and Losses, Distributable Earnings (Loss) per basic common share and Distributable Earnings (Loss) Before Realized Gains and Losses per basic common share, that exclude certain items. Granite Point management believes that these non-GAAP measures enable it to perform meaningful comparisons of past, present and future results of the Company's core business operations, and uses these measures to gain a comparative understanding of the Company's operating performance and business trends. The non-GAAP financial measures presented by the Company represent supplemental information to assist investors in analyzing the results of its operations. However, because these measures are not calculated in accordance with GAAP, they should not be considered a substitute for, or superior to, the financial measures calculated in accordance with GAAP. The Company's GAAP financial results and the reconciliations from these results should be carefully evaluated. See the GAAP to non-GAAP reconciliation table on page 5 of this release. Additional Information Stockholders of Granite Point and other interested persons may find additional information regarding the Company at the Securities and Exchange Commission's Internet site at or by directing requests to: Granite Point Mortgage Trust Inc., 3 Bryant Park, 24 th Floor, New York, NY 10036, telephone (212) 364-5500. (in thousands, except share data) March 31, 2025 December 31, 2024 ASSETS (unaudited) Loans held-for-investment $ 1,937,659 $ 2,097,375 Allowance for credit losses (177,282 ) (199,727 ) Loans held-for-investment, net 1,760,377 1,897,648 Cash and cash equivalents 85,744 87,788 Restricted cash 14,684 26,682 Real estate owned, net 114,520 42,815 Accrued interest receivable 7,452 8,668 Other assets 47,468 51,514 Total Assets $ 2,030,245 $ 2,115,115 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Repurchase facilities $ 534,543 $ 597,874 Securitized debt obligations 773,290 788,313 Secured credit facility 86,774 86,774 Dividends payable 6,208 6,238 Other liabilities 24,636 16,699 Total Liabilities 1,425,451 1,495,898 Stockholders' Equity 7.00% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock, par value $0.01 per share; 11,500,000 shares authorized, and 8,229,500 and 8,229,500 shares issued and outstanding, respectively; liquidation preference $25.00 per share 82 82 Common Stock, par value $0.01 per share; 450,000,000 shares authorized, and 48,389,097 shares and 48,801,690 issued and outstanding, respectively 484 488 Additional paid-in capital 1,194,610 1,195,823 Cumulative earnings (146,571 ) (139,556 ) Cumulative distributions to stockholders (443,936 ) (437,745 ) Total Granite Point Mortgage Trust Inc. Stockholders' Equity 604,669 619,092 Non-controlling interests 125 125 Total Equity 604,794 619,217 Total Liabilities and Stockholders' Equity $ 2,030,245 $ 2,115,115 Expand GRANITE POINT MORTGAGE TRUST INC. (in thousands, except share data) Three Months Ended March 31, 2025 2024 Interest Income: (unaudited) Loans held-for-investment $ 34,327 $ 51,965 Cash and cash equivalents 817 2,090 Total interest income 35,144 54,055 Interest expense: Repurchase facilities 11,885 20,728 Secured credit facility 2,539 2,689 Securitized debt obligations 12,680 18,115 Total interest expense 27,104 41,532 Net interest income 8,040 12,523 Other income (loss): Revenue from real estate owned operations 3,094 1,142 Provision for credit losses (3,770 ) (75,552 ) Total other (loss) (676 ) (74,410 ) Expenses: Compensation and benefits 5,771 5,987 Servicing expenses 1,031 1,376 Expenses from real estate owned operations 4,504 2,045 Other operating expenses 3,003 2,829 Total expenses 14,309 12,237 (Loss) income before income taxes (6,945 ) (74,124 ) (Benefit from) provision for income taxes 70 (1 ) Net (loss) income (7,015 ) (74,123 ) Dividends on preferred stock 3,600 3,600 Net (loss) income attributable to common stockholders $ (10,615 ) $ (77,723 ) Basic (loss) earnings per weighted average common share $ (0.22 ) $ (1.53 ) Diluted (loss) earnings per weighted average common share $ (0.22 ) $ (1.53 ) Dividends declared per common share $ 0.05 $ 0.15 Weighted average number of shares of common stock outstanding: Basic 48,668,667 50,744,532 Diluted 48,668,667 50,744,532 Net (loss) income attributable to common stockholders $ (10,615 ) $ (77,723 ) Comprehensive (loss) income $ (10,615 ) $ (77,723 ) Expand GRANITE POINT MORTGAGE TRUST INC. (dollars in thousands, except share data) (unaudited) Three Months Ended March 31, 2025 Reconciliation of GAAP net (loss) income to Distributable Earnings (Loss) (1): GAAP net (loss) income attributable to common stockholders $ (10,615 ) Adjustments: Provision for credit losses 3,770 Non-cash equity compensation 2,410 Depreciation and amortization on real estate owned 1,397 Distributable Earnings (Loss) Before Realized Gains and Losses $ (3,038 ) Write-offs (24,638 ) Distributable Earnings (Loss) $ (27,676 ) Distributable Earnings (Loss) Before Realized Gains and Losses per basic common share $ (0.06 ) Distributable Earnings (Loss) Before Realized Gains and Losses per diluted common share $ (0.06 ) Distributable Earnings (Loss) per basic common share $ (0.57 ) Distributable Earnings (Loss) per diluted common share $ (0.57 ) Basic weighted average common shares 48,668,667 Diluted weighted average common shares 48,668,667 Expand (1) Beginning with our Annual Report on Form 10-K for the year ended December 31, 2024, and for all subsequent reporting periods ending on or after December 31, 2024, we have elected to present Distributable Earnings (Loss), a non-GAAP measure, as a supplemental method of evaluating our operating performance. In order to maintain our status as a REIT, we are required to distribute at least 90% of our taxable income to stockholders, subject to certain distribution requirements. Distributable Earnings (Loss) is intended to over time serve as a general, though imperfect, proxy for our taxable income. As such, Distributable Earnings (Loss) is considered a key indicator of our ability to generate sufficient income to pay dividends on our common stock, which is the primary focus of income-oriented investors who comprise a meaningful segment of our stockholder base. We believe providing Distributable Earnings (Loss) on a supplemental basis to our net income (loss) and cash flow from operating activities, as determined in accordance with GAAP, is helpful to stockholders in assessing the overall operating performance of our business. For reporting purposes, we define Distributable Earnings (Loss) as net income (loss) attributable to our stockholders, computed in accordance with GAAP, excluding: (i) non-cash equity compensation expenses; (ii) depreciation and amortization; (iii) any unrealized gains (losses) or other similar non-cash items that are included in net income (loss) for the applicable reporting period (regardless of whether such items are included in other comprehensive income or in net income (loss) for such period); and (iv) certain non-cash items and one-time expenses. Distributable Earnings (Loss) may also be adjusted from time to time for reporting purposes to exclude one-time events pursuant to changes in GAAP and certain other material non-cash income or expense items approved by a majority of our independent directors. The exclusion of depreciation and amortization from the calculation of Distributable Earnings (Loss) only applies to debt investments related to real estate to the extent we foreclose upon the property or properties underlying such debt investments. While Distributable Earnings (Loss) excludes the impact of the unrealized non-cash current provision for credit losses, we expect to only recognize such potential credit losses in Distributable Earnings (Loss) if and when such amounts are deemed non-recoverable. This is generally at the time a loan is repaid, or in the case of foreclosure, when the underlying asset is sold, but nonrecoverability may also be concluded if, in our determination, it is nearly certain that all amounts due will not be collected. The realized loss amount reflected in Distributable Earnings (Loss) will equal the difference between the cash received, or expected to be received, and the carrying value of the asset, and is reflective of our economic experience as it relates to the ultimate realization of the loan. During the three months ended March 31, 2025, we recorded provision for credit losses of $3.8 million, which has been excluded from Distributable Earnings (Loss), consistent with other unrealized gains (losses) and other non-cash items pursuant to our existing policy for reporting Distributable earnings (Loss) referenced above. During the three months ended March 31, 2025, we recorded $1.4 million, in depreciation and amortization on REO and related intangibles, which has been excluded from Distributable Earnings (loss) consistent with other unrealized gains (losses) and other non-cash items pursuant to our existing policy for reporting Distributable Earnings (Loss) referenced above. Distributable Earnings (Loss) does not represent Net (loss) income attributable to common stockholders or cash flow from operating activities and should not be considered as an alternative to GAAP Net (loss) income attributable to common stockholders, or an indication of our GAAP cash flows from operations, a measure of our liquidity, or an indication of funds available for our cash needs. In addition, our methodology for calculating Distributable Earnings (Loss) may differ from the methodologies employed by other companies to calculate the same or similar supplemental performance measures, and, accordingly, our reported Distributable Earnings (Loss) may not be comparable to the Distributable Earnings (loss) reported by other companies. We believe it is useful to our stockholders to present Distributable Earnings (Loss) Before Realized Gains and Losses, a non-GAAP measure, to reflect our run-rate operating results as (i) our operating results are mainly comprised of net interest income earned on our loan investments net of our operating expenses, which comprise our ongoing operations, (ii) it helps our stockholders in assessing the overall run-rate operating performance of our business, and (iii) it has been a useful reference related to our common dividend as it is one of the factors we and our Board of Directors consider when declaring the dividend. We believe that our stockholders use Distributable Earnings (Loss) and Distributable Earnings (Loss) Before Realized Gains and Losses, or a comparable supplemental performance measure, to evaluate and compare the performance of our company and our peers.
Yahoo
26-04-2025
- Business
- Yahoo
Apollo Commercial Real Estate Finance Inc (ARI) Q1 2025 Earnings Call Highlights: Strong Loan ...
Distributable Earnings: $33 million or $0.24 per share. GAAP Net Income: $23 million or $0.16 per diluted share. Loan Portfolio Carrying Value: $7.7 billion at quarter end. Loan Originations: $650 million in new commitments and $73 million in add-on funding. Loan Repayments: $93 million during the quarter. Weighted Average Yield: 7.9% on the loan portfolio. Debt-to-Equity Ratio: 3.5 times at quarter end. Total Liquidity: $218 million. Book Value Per Share: $12.66, excluding general CECL allowance and depreciation. Warning! GuruFocus has detected 6 Warning Signs with ARI. Release Date: April 25, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Apollo Commercial Real Estate Finance Inc (NYSE:ARI) committed to $650 million of new loans in Q1, with a strong focus on residential properties and data centers. The company completed an additional four transactions totaling over $700 million post-quarter end, bringing year-to-date volume to $1.5 billion. ARI's loan portfolio grew to $7.7 billion, up from $7.1 billion at year-end, with a weighted average yield of 7.9%. The company successfully reduced its net exposure on the 111 West 57th Street project by $29 million due to strong sales momentum. ARI has a robust presence in the European market, supported by a dedicated team in London, which provides a competitive advantage in sourcing and managing assets. Q1 earnings were slightly below the current quarterly dividend rate, covering only 96% of the dividends. The general CECL allowance increased by $4 million, reflecting a cautious stance on the macroeconomic outlook. There is increased capital markets volatility and recessionary fears, which could impact the real estate market. The company faces potential risks in the hospitality sector if a recession occurs, due to the quick movement of cash flows in this asset class. The balance of the 111 West 57th Street project increased from $390 million at year-end to $403 million due to additional costs. Q: Can you provide an update on the specific CECL tied to 111 West 57th and Liberty Center? A: Stuart Rothstein, CEO, explained that the specific CECL is primarily tied to these two assets. They expect to sell the Liberty Center asset later this year and are confident in its valuation. Sales momentum at 111 West 57th is positive, and they anticipate more capital coming through resolutions by the end of the year. Q: How is the current market volatility affecting loan repayments and new money deployment? A: Stuart Rothstein noted that the market remains robust, with credit market volatility being more muted than in equity markets. They do not anticipate a slowdown in transactions. The main concern is whether a potential recession would be shallow or prolonged, but currently, the need to deploy capital outweighs recession fears. Q: With the senior mezz loan A at 111 West 57th becoming senior, will you start recognizing interest income again? A: Stuart Rothstein clarified that they will not turn income back on, as it would effectively mean paying themselves. Instead, they will keep income turned off and any better-than-expected recovery will come through reserve recovery rather than near-term income. Q: Can you provide updates on the Berlin and Chicago office assets, as well as the Manhattan office and Cleveland multifamily? A: Scott Weiner, CIO, stated that the Berlin office is working on a modification with new equity and a major lease, expecting it to improve. The Chicago office has seen positive leasing and additional equity. The Manhattan office is exploring recapitalization and potential conversion to multifamily. The Cleveland multifamily is performing well with new management and capital. Q: How is ARI managing its European exposure, and what advantages does it offer? A: Stuart Rothstein explained that ARI has a dedicated team in London, led by Ben Eppley, managing European operations. The lack of an active securitization market in Europe allows ARI to handle larger deals, providing a competitive advantage. They hedge everything back to dollars to avoid FX risks. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
13-02-2025
- Business
- Yahoo
Blackstone Mortgage Trust Inc (BXMT) Q4 2024 Earnings Call Highlights: Navigating Challenges ...
GAAP Net Income: $0.21 per share for Q4 2024. Distributable Earnings: Negative $1.25 per share for Q4 2024, including $294 million of charge-offs. Distributable Earnings (Excluding Charge-offs): $0.44 per share for Q4 2024. Dividend: $0.47 per share paid for Q4 2024. Book Value: $21.87 per share at the end of Q4 2024. Impaired Loan Resolutions: $1.1 billion resolved, representing 49% of impaired loans. Repayments: $1.6 billion in Q4 2024, totaling $5.2 billion for the year. Liquidity: Record $1.9 billion as of the call date. Debt to Equity Ratio: Reduced to 3.5 times, the lowest level in 11 quarters. Loan Originations: $186 million in Q4 2024, with over $2 billion closed or in closing in Q1 2025. Corporate Debt Transaction: $1.1 billion deal completed, 4 times oversubscribed. CECL Reserve: $746 million, down 27% quarter over quarter. Economic Return: Positive 1% for stockholders in Q4 2024. Warning! GuruFocus has detected 9 Warning Signs with BXMT. Release Date: February 12, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Blackstone Mortgage Trust Inc (NYSE:BXMT) resolved $1.1 billion, or 49% of its impaired loans, improving its performing loan percentage to 93%. The company completed the largest corporate debt transaction in its history, a $1.1 billion deal, which was 4 times oversubscribed. BXMT reported robust repayments of $1.6 billion in the fourth quarter, bringing total repayments to $5.2 billion for the year. The company has a strong liquidity position with $1.9 billion available, providing a solid foundation for future growth. BXMT's new investment pipeline is strong, with $2 billion of deals closed or in closing, concentrated in sectors like multifamily and industrial. BXMT reported a GAAP net income of $0.21 per share but a distributable earnings loss of $1.25 per share due to charge-offs. The company faced $294 million in charge-offs related to impaired loan resolutions, impacting distributable earnings. Despite improvements, BXMT's book value decreased by 1% from the third quarter. The company continues to face challenges with its remaining impaired loans, which are burdened by significant interest expenses. BXMT's portfolio contraction due to capital deployment lagging repayments is expected to weigh on distributable earnings in the near term. Q: Can you provide an earnings bridge into the beginning of the year and how you see earnings ramping as we move forward? A: Katharine Keenan, CEO: We had $0.44 in the fourth quarter, $0.46 if you exclude certain costs. The most impactful driver of earnings is resolutions, with $1 billion executed and another $400 million in closing. Reinvestments from repayments will take a quarter to see the full impact. We are in the trough now and expect improvement by the second quarter. Q: How should we think about the resolution of the remaining $1.5 billion of 5-rated loans? A: Katharine Keenan, CEO: The $400 million in resolutions are deals we have clear visibility on and hope to close in the first quarter. We are focused on reducing our impaired loan balance quickly and are working on every single one of them. Q: What is the expected loss on UPB for resolving remaining 5-rated loans? A: Anthony Marone, CFO: Our CECL reserves tend to be in the mid-20s, and we resolve around that mark or slightly better. The 13% figure mentioned might be off; our reserves have been accurate or conservative. Q: Will stock buybacks continue if the stock remains under 85% of book value? A: Katharine Keenan, CEO: We have $90 million left on our stock buyback authorization and almost $2 billion of liquidity. We are actively deploying into various real estate credit investment opportunities, and the stock is on that list. Q: How do you differentiate BXMT's approach in the net lease sector from other major institutional players? A: Katharine Keenan, CEO: The market is large and granular. We aim to build a thoughtful, diversified, and well-protected portfolio that complements our earnings profile. We are not in a rush to grow rapidly but will focus on quality and diversification. Q: What types of spreads or IRRs do you expect on new loans in 1Q and '25? A: Austin Pena, EVP-Investments: Asset spreads and liability spreads have both come in, maintaining leverage spreads around 900 to 1,000 over. The risk-adjusted returns are compelling given the credit profile of the deals. Q: How are you thinking about leverage levels as the market begins to heal? A: Katharine Keenan, CEO: Our strategy of maintaining leverage between 3 and 4 times has proven effective. We were at 3.5 times at year-end, and with repayments, we are at the lower end of our target range. We are optimistic about portfolio growth within this range. Q: Has rate volatility created any new potential credit challenges? A: Katharine Keenan, CEO: We haven't seen a material impact from rate upticks on repayments. The slight rate increase has driven more capital into credit markets, enhancing liquidity for repayments, which benefits our portfolio's credit profile. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
