Good morning and welcome to Ladder Capital Corp's Earnings Call for the first quarter of 2025. As a reminder, today's call is being recorded. This morning, Ladder released its financial results for the quarter ended March 31, 2025. Before the call begins, I'd like to call your attention to the customary Safe Harbor Disclosure in our earnings release regarding forward-looking statements. Today's call may include forward-looking statements and projections, when we refer you to our most recent Form 10-K for important factors that could cause actual results to differ materially from these statements and projections. We do not undertake any obligation to update our forward-looking statements or projections unless required by law. In addition, Bladder will discuss certain non-GAAP financial measures on this call, which management believes are relevant to assessing the company's financial performance. The company's presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP. These measures are reconciled to GAAP figures in our Earnings Supplement presentation, which is available in the Investor Relations section of our website. We also refer you to our Form 10-K and Earnings Supplement presentation for definitions of certain metrics, which we may cite on today's call. At this time, I'd like to turn the call over to Ladder's President, Pamela McCormack. Good morning.

During the first quarter, Ladder generated distributable earnings of $25.5 million, or 20 cents per share, for a turn-on equity of 6.6%, with modest adjusted leverage of just 1.4 times. We remain pleased with Ladder's positioning in 2025, following our strong performance in 2024. Over $1.7 billion, or 51% of our balance sheet loans, paid off in 2024, marking the highest annual payoff volume in Lattice history, with nearly $600 million of proceeds from loan payoffs in the fourth quarter alone. While the timing of these payoffs temporarily muted earnings, reinvestment momentum is now building. Getting paid back is the most important part of the mortgage business, and we're excited to redeploy the liquidity generated from loan payoffs into new loans at lower, reset basis that better reflect current market conditions. During the first quarter, we originated $329 million in new loans and acquired $521 million in AAA securities, bringing our total first quarter investment activity to over $800 million. Our discipline model has firmly established our position as a leading middle market-focused commercial real estate finance REIT. Over the past several years, we have consistently delivered strong earnings, preserved book value achieved record loan payoffs avoided material losses enhanced and extended our liability structure and maintain the highest credit ratings in the sector all amid a challenging macroeconomic backdrop the strength of our platform was most recently evident through the return on equity ladder generated in 2024 one of the strongest in the sector as we look ahead for the remainder of 2025 we recognize the continued possibility of market volatility and uncertainty. However, with substantial liquidity, modest leverage, and a robust balance sheet, including one of the lowest cost capital in our space, we're well prepared to navigate these challenges and capitalize on the opportunities they may create. Enhanced liquidity and credit ratings. As of March 31st, 2025, LADA had $1.3 billion in liquidity, including $480 million dollars or over 10 percent of total assets comprised of cash and cash equivalents 83 percent of our asset base was on encumbered as a quarter end and 72 percent of latter's debt was comprised of unsecured corporate bonds latter remains on positive outlook from both moody's and fitch with ratings just one notch below investment grade while s p upgraded our credit rating by one notch in 2024. the recent expansion and upsizing of our 850 million dollar unsecured corporate revolving credit facility, coupled with our $500 million unsecured bond issuance in 2024, represent meaningful progress in our shift towards unsecured debt as our primary funding source, an important milestone on our path towards potential investment grade rating. Loan portfolio overview. As of March 31st, 2025, our loan portfolio stood at $1.7 billion, dollars representing 38 percent of total assets with a weighted average yield of 8.7 percent our future funding commitments remain minimal totaling just 40 million dollars during the first quarter new loan originations outpaced payoffs we received 181 million dollars in loan payoffs including the full repayment of nine loans in contrast we originated 329 million dollars of new loans consisting of a $64 million fixed-rate conduit loan with a coupon of 6.8% and $265 million in balance sheet loans at a weighted average spread of 394 basis points. Notably, 74% of these originations were backed by multifamily or industrial assets. Additionally, our pipeline continues to grow with approximately $250 million in new loans currently under application. Given the robust payoffs achieved in 2024, we expect muted payoffs for the remainder of the year. Asset repositioning and risk management. During the first quarter, we placed two more loans totaling $38.7 million on non-accrual status, a $13.7 million hotel loan, and a $24.9 million office loan. Overall, our non-accrual loan balance represents only 2.6% of our assets. We did not take any impairments this quarter, and our CECL reserve remained at $52 million as of March 31st, 2025. We continue to believe this reserve is sufficient to cover any potential losses we may incur, highlighting the strength of our underwriting and asset management, which remain a core driver of our success. Consistent carry income from our real estate portfolio. Our $892 million real estate portfolio generated $12.2 million of net operating income during the first quarter. The portfolio primarily consists of net lease properties with long-term leases to investment-grade-rated tenants. In addition, we sold one net lease property, generating a $900,000 gain in distributable earnings during the quarter. Growing securities portfolio. During the first quarter, we acquired an additional $521 million in AAA-rated securities at a weighted average unlevered yield of 5.79%. As of March 31st, our portfolio totaled $1.5 billion, with a weighted average unlevered yield of 5.67%, primarily comprised of AAA-rated securities. As Brian will cover in more detail, we continue to invest in securities during the second quarter as spreads widened, ensuring stable earnings and enhanced liquidity for Ladder, with the entire portfolio remaining unlevered. 2025 outlook. Lattice business plan continues to prove effective amid a highly dynamic environment shaped by persistent interest rate volatility and geopolitical uncertainty, including the reemergence of tariffs. These trade tensions have contributed to uncertainty and impacted commercial real estate demand, especially in sectors tied to global supply chains. While this volatility may dampen price discovery and deal execution, it should also present attractive opportunities for well-capitalized platforms like LADDER. Our discipline, balance sheet strengths, and real-time market intelligence, gathered from our multi-cylinder business model, are crucial in enabling us to proactively navigate market fluctuations and capitalize on opportunities with the best risk-adjusted returns when others may be constrained. In conclusion, we remain highly liquid and very well situated to act with certainty and speed to deploy capital into new investments that can drive earnings growth and deliver long-term value to our shareholders. With that, I'll turn the call over to Paul.

Thank you, Pamela. In the first quarter of 2025, Ladder generated $25.5 million of distributable earnings, or 20 cents per share of distributable EPS, achieving a return on average equity of 6.6%, as our balance sheet remained flush with liquidity and low leverage after ending 2024 with record payoffs. As of March 31st, 2025, Ladder's balance sheet remained strong, was primarily comprised of cash and a liquid AAA securities portfolio with room to grow leverage as we deploy our capital. As of March 31st, 2025, Ladder's liquidity was $1.3 billion, comprised of cash and cash equivalents, and our newly upsized and extended $850 million on secured revolver, which remains undrawn. Total growth leverage was 1.83 times as of quarter ends. As we continue to de-lever far from our target range of between two and three times leverage as of march 31st 2025 72 percent of our debt was comprised of unsecured corporate bonds with a weighted average remaining maturity of 3.5 years an attractive weighted average fixed rate coupon of 5.2 percent in the first quarter we were purchased 20 million dollars in principal value of our unsecured bonds including eight million dollars of our 2025 bonds maturity maturing this october which now have 288 million dollars in principle that remains outstanding in the first quarter we called our fl2 clo as it continued to advertise in total in the first quarter we repaid 323 million dollars of secured clo debt as pamela noted latter remains on positive outlook one notch from an investment grade credit rating with two rating agencies latter is currently running a balance sheet within many of the investment grade metrics of the rating agencies given our long track record as disciplined and prudent manager of capital we are hopeful we will become an investment grade rated company in the near term as of march 31st 2025 our unencumbered asset pool stood at 3.7 billion dollars or 83 percent of total assets 85 of this unencumbered asset pool is comprised of first mortgage loans securities and unrestricted cash and cash equivalents As of March 31, 2025, Ladder's undepreciated book value per share was $13.66, which is net of $0.41 per share of CECL General Reserve established. In the first quarter of 2025, we repurchased 71,000 shares of our common stock at a weighted average price of $11.42 per share. As of March 31, 2025, $66.8 million remains outstanding on Ladder's stock repurchase program. Subsequence quarter ends in April. Ladder's Board of Directors approved an increase to Ladder's shared buyback authorization to $100 million. In the first quarter, Ladder declared a $0.23 per share dividend, which was paid on April 15, 2025. As we continue to deploy the liquidity we've amassed through successful payoffs in 2024 and begin to prudently add leverage to our delevered balance sheet, we are hopeful we return to consistent dividend coverage in the coming quarters. As Pamela discussed, our performance in detail, I will highlight a few additional points regarding the performance of each of our segments from the first quarter as of march 31st 2025 our non-accrual loan balance was 116 million dollars across four loans and our cecil reserve was 52 million dollars or 41 cents per share as i previously mentioned we believe this reserve level is adequate to cover any potential loss in our loan portfolio including consideration of the continued macroeconomic shifts ongoing in the global economy as of march 31st 2025 the carrying value of our securities portfolio is 1.5 billion dollars up 37 percent from year end with a weighted average yield of 5.67 percent as we continue to rotate capital out of p-bills and into triple a securities while we allow for our loan pipeline to build as of march 31st 2025 99 of the securities portfolio was investment grade rated with 96 being triple a rated as mentioned the entire portfolio of predominantly AAA securities is unencumbered and readily financeable, providing an additional source of potential liquidity, complementing the $1.3 billion of same-day liquidity we maintain. Our $892 million real estate segment continued to generate stable net operating income in the first quarter of 2025. The portfolio includes 149 net lease properties, primarily investment-grade credits, committed to long-term leases with a weighted average rating lease term of 7.5 years. In the first quarter, we sold one net lease property for $13 million of proceeds, generating a $0.9 million gain for distributable earnings and a $3.8 million gain for GAAP, which includes the recapture of previously recorded depreciation and amortization expense. In conclusion, looking back over the five years since the onset of COVID-19 in March of 2020, Ladder has maintained a remarkably steady book equity of approximately $1.5 billion. dollars we believe this is a testament to our long-held focus on principal preservation first and return on equity second with a consistent strategy of financing our three core businesses primarily with unsecured debt and modest leverage for further details on our first quarter 2025 operating results please refer to our earnings supplement which is available available on our website and latter's quarterly report on form 10q which we expect to file in the coming days With that, I'll turn it over to Brian.

Thanks, Paul. At the end of 2024, we held about $1.3 billion in cash and T-bills following a high volume of loan payoffs in the second half of the year. In the first quarter of 2025, we began to deploy that capital into new investments in a post-pandemic, post-election, higher interest rate environment. As the year began, we felt like loan requests coming out of the refi channel were unattractive and largely relating to older properties with broken business plans with too much existing leverage in place. We tried to focus on originating mortgage loans on new acquisitions and on newer properties where we could find them. By the end of the first quarter, we were seeing much more attractive lending opportunities, with acquisitions becoming more common, along with newly built multifamily units coming off construction loans and in their initial lease-up phase. We were pleased to have originated $265 million of first lien balance sheet loans at credit spreads ranging from 270 to 700 basis points and averaging 394 basis points over one month so far. We also originated a $64 million fixed-rate mortgage that we plan to securitize at some point this year, when we accumulate enough of these kind of fixed-rate loans to participate in a conduit securitization. This loan was a refinance of a $76 million loan we made to the same sponsor 10 years Further investments in the first quarter included the addition of $521 million of AAA securities, And as volatility gripped capital markets as April began, we added over 160 million more of AAA securities so far this month. For the remainder of the year, we expect to favor more investments in loans, but when volatility causes spikes in credit spreads, as it did in early April, we'd benefit from the ability to pivot and add more highly rated liquid securities to our inventory. In short, we expect to add similar assets in the quarters ahead with a preference for higher-yielding loans versus securities. On the right side of the balance sheet, we called one of our two CLOs issued in 2021 after payoffs in the pool of mortgage loans eliminated the A-class. Overall, secured debt was paid down by $346 million in the first quarter. If market volatility decreases, we hope to issue another corporate unsecured bond as summer approaches, but I would note that with an undrawn revolver of $850 million and $1.5 billion of unlevered securities, we are under no pressure to issue any new debt, and we'll only do so if we believe conditions are attractive. To wrap things up today, looking forward, we expect the Treasury curve to steepen, with short-term rates falling while longer-term rates will be rising. This is not a great scenario for the overall economy, as savers earn less interest and cost-to-service most forms of debt increase. We believe this scenario should be supportive of a larger opportunity to participate more meaningfully in conduit securizations. While it has been a while since we had meaningful earnings contribution from our conduit business, owing in part to an inverted yield curve that persisted for years, this product is the highest ROE product in our product mix, and we would welcome the return of the conduit business at latter. We expect the Fed will start to cut short-term rates in the near term, primarily because of where we see the two-year Treasury yield versus the Fed funds rate that the Fed controls. We believe the long end of the Treasury curve will rise as inflation picks up and the deficit increases. While such rise would generally not be a great sign for the economy, we believe it would be an environment that an operation like ours can thrive in, given the strength of our balance sheet and overall liquidity position. Thanks for listening today. I think we can take some questions now.

Thank you. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For a participant choosing speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment while we pull for questions. Our first question is from Randy Benner with B. Riley.

Please proceed. hey thanks um i guess i'll start on um the origination activity which was which was positive in the quarter and the blended 394 basis point spread you noted um but it was pretty wide like 270 by 700 i i think and so the question is you know we we kind of thought of over you know kind of s plus 300 is a good level of where you're able to put money to work you know you was there exceptionally good activity in the first quarter that had that elevated or can we think like three high 300s is is where uh loan originations money can be put to work this year

uh okay randy thank you uh this is brian the um quarter produce as you can imagine with all the volatility that commercial real estate's been going through in the last few years not since the inauguration. There are difficult situations out there. There are lenders that want to be paid off and might be willing to take a discount they weren't willing to take a while ago. There are also a lot of acquisitions going on at different reset prices. And I think what happens sometimes in markets like that is, I'll call it special situations, they always pop up once in a while. But I would expect to see more coming out of a downturn. And sometimes what's very important is that you move quickly. And when someone is buying something that they feel is very cheap and they want to move fast on it, sometimes they're not overly worried about what the rate is as long as you get them to the closing very quickly. So there were some situations like that. And because we hold things on our balance sheet and we're not beholden to BP's buyers or rating agency subordination levels, we can pretty much just make a credit decision. And because we're all in one house and there's no third parties outside the building making the determination, you know, I think we can drive a premium cost once in a while on yield to us. And also, the one thing I've been noticing, as I said, was we seem to be looking at a whole lot of brand new multifamily properties that are coming off construction loans and in lease up. That market is 225 to 275, and depending on what state you're in and what the leverage point is. So that is the most prevalent product we're seeing financing opportunities for. But I don't think I would try to indicate to you we're going to start being at 250 to 270 most of the time, because I do think that we will continue to see barbelling situations pop up. And, you know, I also hesitate to draw too many conclusions around a sample size of $200 and change million dollars, $260 million, because one loan could really swing things around a little there. But this is the kind of market where you will see opportunities to receive premium pricing for your liquidity and speed. So hope that answers.

Yeah, that's helpful. Just one quick clarification or follow-up is the, I think, of that origination in the quarter there was a a percentage that was multi-family and industrial I just I missed that how much of it was in those two classes I think they said 74 but I'm not sure um Craig do you have Adam if you know the answer yeah 74 percent yeah the old man okay the old man got it right super okay thanks appreciate it our next question is from Jade Romani with KBW you please proceed thanks very much I was wondering if you expect originations to maintain or exceed

the pace that you generated in the first quarter I would expect them to exceed it okay has there been any slowdown I think you may have alluded to this post quarter end slowdown in which part of of the Python as a part where there are signing applications and posting deposits or closings or securitizations, because there's definitely been a slowdown in securitizations with all the volatility. However, we were not looking to participate in anything anyway. But on the origination side, I think that there, like many businesses, a lot of borrowers are kind of freezing until they get a sense as to what's going on here. And 10 o'clock in the morning, it looks one way, and at 3 o'clock, it looks different. So that will dampen activity. But coming off of what we've gone through in the last two years, where effectively we're an asset management operation trying to get capital back in the building, wildly successful in getting paid off, then we turned on the jets the other way and started making investments of over $800 million in the quarter. So while spreads have been widening out, I haven't seen a fall off in activity. But it's not hard to see an acceleration of activity when you're originating $300 million in a quarter. I would expect us to originate in excess of that. So it was really a start as opposed to an average quarter, I think. So I think you can expect us, regardless of the volatility in the space, I mean, things can go too far. But I think, in general, you'll see these numbers going up as we – and we're planning to migrate out of those securities that we purchased into the loan platforms.

Thank you. How are you thinking about the net lease portfolio longer term? Do you plan to grow it?

Do you plan to sell – continue to sell down properties before leases come due? uh is there a core set of the portfolio where you will hold the properties even as lease maturity approaches just overall what are your views regarding that portfolio we we actually have a very um non-proprietary view of holding on to those assets uh they're for sale every day one and all um and oftentimes people will call us and sometimes if it's a small asset it'll be somebody who knows the the neighborhood i think we sold one supermarket in oklahoma uh and and it isn't because we put it up for sale and marketed it uh we answered the phone and it was somebody who had purchased another supermarket from us previously so nice easy process and it added a little bit to earnings and got some it proves out that gap in book value you know from um from from what the undepreciated book value number uh we are usually in active discussions on people who want to buy those things those conversations take place more when the stock market is higher for strange reasons um but with with stocks falling you know people are less apt to be be doing things but i want you to know that you know we're not actively managing trying to sell it we're prepared to hold all of them uh and when we make that purchase there's always a price where we target a sale in fact the day we close we have a targeted sale we have a date and a price that we're we think we're going to sell it at but after we write that down we don't on that day put the property up for sale at that price we just kind of use it as a guideline as to if we get a bid here why don't we try this because we're not in any need of capital there's no active attempts to sell things happy to add to that portfolio happy to grow it but i think i've said on numerous calls like this that will take place more frequently in a steep yield curve where you can borrow money at lower on the short end of the curve and purchase long-term and cash flows on the long end of the curve, that creates a wonderful arbitrage. So we're not there yet. So we're not eyeing anything. There have been a couple of triple net portfolios that have come across our desks recently. But we're not active there. But I suspect that portfolio will probably go down just a bit in the next two quarters. And I think it'll probably go up after that. But precedent being the yield curve is a little steeper. Thank you very much.

Our next question is from Steve Delaney with Citizens JMP Securities. Please proceed.

Hey, good morning, everyone. So, Brian, interesting, you know, the 10-year, your comments about the steeper curve and it's making that more attractive for net lease. So, well, we're down six basis points today to 432 on the 10-year. In your crystal ball, like over the next six months, where do you think, where do you think it could rise to? And what are you looking for to take advantage of it? Do you need up 50 basis points or is it something more modest than that? Thank you.

It actually, Steve, rather than trying to figure out – I think the 10-year is going to go higher, first of all, because the U.S. has a massive deficit and they're going to have to fund it. And so much dollars are going into interest now that what we you're old enough at this point to remember crowding out so you know when the government is borrowing an enormous amount of money there's less credit available for people who want to do other things they're a little more productive than paying interest so I think it would the tenure will go higher I also think the the short end will go lower we're seeing an indication that right now if you look at where the two year is versus one month so far might remember a couple of years back where we got out in front of a scenario where we thought rates were going to rise rapidly and on the short end and we I remember the day we were on a phone call I think we had just borrowed money for seven years at four and a quarter and we were being chastised for paying too much interest because LIBOR was at 25 basis points and we indicated we would play the long game there as opposed to where things were right now and you know we felt LIBOR was going to go up dramatically because the two-year was rocketing higher. And so as much as the TVs like to talk about, you know, Trump and Powell and arguments and who does what, at the end of the day, the two-year is driving where that short end is going to go. And so I am now of the opinion that Powell will cut rates, and not because I think he wants to satisfy Trump. I think that Powell will cut rates because the two-year is going to force him into it. So I think you can expect a lower short end and a higher long end, which will create the differential is what we worry about there. So I don't care how much the two-year goes down if the 10-year goes up a lot. If the two-year stays right where it is, it's okay. But I don't think that's what's going to happen. I do think that we're in for a little bit of a slowdown here, and that should precipitate the Fed to make a move lower. And I think that's what all the forward curves are saying anyway. the real question is how much of a of a stomach does the administration have for a 10-year at five percent or 475 throwing darts not what i do for a living i would probably tell you the um the 10-year will probably get up around 475. okay yeah optically that's a little more attractive i think for uh especially for the real estate markets in their five handle um you obviously CNBS, RMBS, you know, non-agency, of course, you know, things have blown out, right?

And much wider. You put some money to work. Interestingly on that, and I mean, I guess you're looking, when you step in there, what are you looking at? Five to seven year kind of durations. And how do you protect yourself if you add a lot of CNBS, fixed rate CNBS against the steepening? Do Do you put some swaps on? How do you take advantage of the CMBS basis widening without taking interest rate risk?

I would say that what we call the CMBS, the mortgage-backed securities business, covers a lot of different products. And CMBS has widened really with the rest of the world. And if you take a look at some of the residential mortgage rates, You know, they've been suffering some book value declines, spreads are blowing out and they keep issuing shares to buy more. So these are at very historically wide credit spreads. And so the way I was taught a long time ago, the best hedge is at the price you buy it at. And so the way we protect ourselves in an environment where we have said for a while, we suspect, you know, rates will go up if the government doesn't get the tenure on the asset, sorry, I can't remember the word now, the deficit, at least under some kind of a game plan. And so we don't really own a lot of 10-year instruments, except fixed rate that we plan on securitizing. So right now we own very little of that. And what we do have on, we do hedge with swaps. We don't ever hedge one-to-one. So we own that one loan that we did at 6.8%. So we have that hedged about 50% right now. But that's a daily occurrence. We move that around often. And the way we really avoid, you know, a credit blowout and a lot of volatility is you buy floating rate instruments that are two-year AAAs. And that leads you to another part of the mortgage-backed security world, which is CLOs. And the CLOs that are out there right now, there's been a slowdown in production of these also where people are just saying, you know, they're going to wait until volatility comes down. All that translates to is I don't like where I have to sell bonds. So, and you hear us expressing a view that we like buying bonds here. which is what you would expect. So we don't leverage ourselves aggressively at all. In fact, I think we have $1.5 billion of AAA securities with no leverage at all. So we finance ourselves as we're now at a mature phase of this company where we finance ourselves through long-term corporate debt that does not have mark to market in its process. So those are all vehicles that hedge you against volatility.

Appreciate the comments, Brian. Sounds like you've got some attractive opportunities out here over the next quarter or two. Thank you. Thank you.

As a reminder to star one on your telephone keypad, if you would like to ask a question. Our next question is from John Nicodemus with BTIG. Please proceed.

Morning, everyone. Was looking at your slide six in the latest supplemental, just sort of the percentages between the different assets within your portfolio. Obviously, I've seen cash come down a bunch, securities go up a bunch, and then also loans start to creep back up with loan portfolio growth returning. I'm just curious kind of how you're envisioning this slide or just this allocation proceeding as the year goes on, given the $160 million of AAA is being added in April alone. Also sounds like originations are going to keep ramping? And then based on what you're seeing right now, do you have a sort of steady state mix that you're looking at for the different percentages allocated to each asset class? Thanks.

Sure. We don't have any game plan as to what concentrations we want in anything. We run the company from an overarching perspective of we want to have a lot of liquidity around during anything that's coming but particularly in the volatility we've been seeing here so in that scenario you know we generally like having AAA securities especially when they're yielding if we were to lever them and as I said we have not but we're competing with people who do leverage them so we have to be mindful of that but if we were to take our a billion dollars of AAA securities and borrow 900 million dollars the 100 million dollars left would probably be yielding you know, in the 12, 13, 14 area, depending on what the price was that we bought the securities at. But that to me, that's a, that's an episodic relationship. If things tighten, we will sell all of the securities. And if things really widen a lot, then we'll buy a lot more of them. But for the most part, we worry, we know what our financing cost is, it doesn't move around a lot because it's fixed rate, primarily 72% of our assets, our liabilities are fixed rate corporate debt. So I think our cost of funds there is 5.3%. And right now we're not having any trouble at all, you know, accomplishing an ARB there. So, but I would expect because we're now coming out, if the country goes into a recession, and I think it might, I don't think it'll be a horrific one, but I think it might go into one, commercial real estate is still coming out of a recession. And it was in three years ago, and it's coming out first. So we are seeing improvement in fundamentals. And I think that follows people who are concerned about possibly losing their jobs. There's a lot less moving around. And so when people start opening their 401ks at the end of the quarter, they might decide to sell their house with a 3% mortgage and move to Florida. So we try to get in front of those things. But for the company, having done this through many cycles, you will see more loans on our balance sheet going forward. You will see more participation in the conduit if the yield curve steepens. And you'll see less securities and less cash on our balance sheet. And the reason for the less cash, don't think we're becoming cowboys, we have an $850 million revolver.

That's really helpful, Brian. I appreciate that. And then other one for me is just the origination pipeline. I know Pamela said 74% of what came in the first quarter was either multifamily or industrial. Is it a similar sort of balance you're seeing with what you're looking at for the rest of the year, or is that shifting at all, especially given the recent tariff news? Thanks.

I think, Pamela, if you want to take that one, or I'm happy to. Okay.

Again, because of the fallout right now, it's all subject to change, but right now it looks like a very similar 70 percent multifamily contribution on what's under apps but if we find these one-off opportunities the barbelling that could change a little bit but i think generally speaking i would expect it to be you know a majority of our originations great thanks all pamela that's all for me there are no further questions at this time i would like to turn the floor back over to brian harris for closing remarks okay thank you uh for all listening live or or later and i look forward to our next call but our business plan is unfolding the way

we've indicated it would. We migrated cash out of cash and T-bills and into securities where they're waiting to be called upon to head for the runway as we write loans that will be higher yielding. So we look forward to having shared that with you over the following three quarters, but it looks like we've got ourselves in a very good position with a lot of liquidity at a time where there's widespread and high rates and a lack of competitiveness in the market. so I look forward to this and we'll catch you next quarter thank you this will conclude today's conference you may disconnect your lines at this time and thank you for your participation