Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you discuss the returns on new investments like construction and Freddie K deals, and how they compare to the cost of Series B capital? A: On the Freddie K deals, we expect a 5-year fixed deal in Q2, with yields in the 8% to 9% range, leading to low to mid-teens returns with leverage. For construction, we see high-quality assets with 60% loan-to-cost and 300 to 400 spread, using Series B to fund these attractive opportunities. Matthew McGraner, Executive Vice President, Chief Investment Officer
Q: How is the performance of life sciences investments, and what metrics should we monitor? A: Our Massachusetts loan in Alewife is a $220 million commitment, with a 25% loan-to-cost. The stabilized debt yield is 30+ with strong leasing activity. Across the portfolio, detachment points are 40% to 50%, with assets valued at $1,600 to $1,800 per foot. We are confident in our strategy and expect positive outcomes. Matthew McGraner, Executive Vice President, Chief Investment Officer
Q: Are there any delinquent or defaulted loans, or loans on a watch list? A: We have a few CMBS portfolio loans on the watch list, but overall, the portfolio is strong. We expect refinancing for some loans in Q2 or Q3. The portfolio performance remains robust. Paul Richards, Executive Vice President and Chief Financial Officer
Q: Is the Cambridge deal a speculative development, and what gives you confidence in its success? A: Yes, it is speculative. Despite oversupply concerns, the true competitive supply in core markets is less than $2 million square feet. We have strong interest and a bid for the loan, with a 25% loan-to-cost, which is less than land value. Matthew McGraner, Executive Vice President, Chief Investment Officer
Q: What is the delinquency rate in the Freddie Mac K series portfolio? A: The delinquency rate is extremely small, with only two loans out of 7 or 8 B pieces being 30 or 60 days delinquent. Paul Richards, Executive Vice President and Chief Financial Officer
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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