Patrick Mattson

“During the quarter, we originated $157 million of loans, including a Class A senior housing portfolio secured by four properties across the U.S., and a Class A Texas office property.”

“Let me start with a few changes to the watch list. This quarter, we downgraded our Philadelphia office assets with two smaller Texas multifamily loans from risk rate at 3 to 4.”

“Looking at risk ratings during the quarter, we downgraded the Cambridge Life Science and San Diego multi-family loans to risk grading 5. As a result of these developments, we recorded total incremental CECL provisions of $44 million during the quarter.”

“Thanks to strong investor demand and close coordination with the KKR Capital Markets team, we successfully upsized our Term Loan B by $100 million to $650 million, which now has approximately six and a half years remaining until its 2032 maturity.”

“Let me begin with an update on our watchlist as well as progress on the REO assets. As we reported last quarter, we took title for the West Hollywood multifamily loan in April and recorded a loss to distributable earnings of $20 million, which was a slight improvement over our CECL reserve.”