Shares fell 7.0% as investors reacted negatively to a cautious outlook and margin pressure amid uneven CRE recovery and increased reserves on legacy assets, signaling limits to near-term growth and profitability.

• Reported a GAAP net loss of $0.02 per share and distributable earnings of $0.02 per share, reflecting minimal profitability.
• Maintained the quarterly dividend at $0.04 per share despite weak earnings.
• Credit performance remained stable overall, but management increased reserves on certain legacy positions, indicating recognition of persistent risks.
• Portfolio activity included $47 million of payoffs, offset by reinvestments in two new multifamily loans totaling $48 million, showing cautious capital redeployment.
• Management highlighted continued uncertainty in CRE markets, with selective financing and widening performance disparities by asset quality and location weighing on outlook.