Q4 2020 Apollo Commercial Real Estate Finance Inc Earnings Call
Ladies and gentlemen, thank you for standing by I'd like to remind everyone that today's call and webcast are being recorded. Please note that there are the property of Apollo commercial real estate Finance, Inc, and that any unauthorized broadcast in any form is strictly prohibited information.
About the audio replay of this call is available in our earnings press release.
I'd also like to call your attention to the customary safe Harbor disclosure in our press release regarding forward looking statements.
Today's conference call and webcast may include forward looking statements and projections and we ask that you refer to our most recent filings with the SEC for important factors that cause that could cause actual results to differ materially from those statements and projections. In addition, we will be discussing certain non-GAAP measures on this call.
Men management believes are relevant to assessing the company's financial performance. These measures are reconciled to GAAP figures in our earnings presentation, which is available in the stockholders' section of our website, we do not undertake any obligation to update our forward looking statements or projections unless truecar require.
By law to obtain copies of our latest SEC filings. Please visit our website at www dot Apollo or the I T dot com or.
Or call Us at 2125153 200 at this time I'd like to turn the call over to the company's Chief Executive Officer, Mr. Stuart Rothstein. Please go ahead.
Thank you good morning, and thank you for joining us on the Apollo commercial real estate Finance year end 2020 earnings call. Joining me. This morning are Jay I'll go wall and Scot winner, we hope that everyone listening continues to be safe and healthy as we work through the challenges related to the pandemic.
It is impossible to review of <unk>, 'twenty, 'twenty performance or discuss current market conditions and the implications for <unk> future strategic priorities without acknowledging the initial and ongoing impact of the pandemic.
Ultimately the real estate market resides at the intersection of the economy and the capital markets. The frame my comments in the appropriate context. It is important to note that despite initial concerns expressed by those who viewed the debit through the lens of the global financial crisis.
Over the past 11 months the capital markets have remained functioning and experience of historically rapid recovery.
However, overall economic performance is recovering slowly and the ultimate trajectory of the economy will depend on the pace at which fiscal and regulatory policies and capital investment are able to minimize the impact of the pandemic and the ongoing vaccination efforts enabled the reopening of the as much of the.
The pre pandemic economy as possible.
Unlike every other year end earnings call in <unk> history, when we would typically highlight origination volume growth and the capital base and portfolio as well as capital efficiency. We believe Ari's performance in 2020 is best measured by the company's balance sheet durability and effective.
Proactive asset management.
During the year the in place strength of the balance sheet was enhanced through effective liquidity management predicated on strong relationships with each of our lenders as well as opportunistic and well priced asset sales.
I think management efforts benefited from our ongoing investments in both talent and systems and our historic practice of keeping the originators involved with the air transactions, which facilitates the dialogue with and information flow from our borrowers with the tremendous skills get skill set of Apollo.
Commercial real estate debt team and the resources thought leadership and relationships that come from being part of the broader Apollo organization were instrumental to our eyes achievements in 2020 and continue to differentiate in the marketplace in the.
Portly. The net result of our 2020 efforts with <unk> continued ability to pay a well covered dividend to our shareholders.
The onset of the pandemic immediately lead to concerns over liquidity throughout the real estate sector and heightened security of balance sheet strength and bank lending relationships across mortgage rates.
In managing Ari's balance sheet, we have always focused on implementing the leverage strategy consistent with our asset mix.
<unk> the use of leverage with return targets not relying on Max leverage on any one asset to generate of target return and maintaining an unencumbered pool of loans. We have consistently maintained strong relationships with our lenders always seeking to keep an open and candid dialogue and ensuring.
The <unk> fully benefits from the one of Apollo approach to managing relationships with key financial partners. This approach was validated during 'twenty 'twenty as.
As we materially increased our short term liquidity without the need for any form of rescue capital or having to access the capital markets from a position of weakness during the peak of capital markets volatility.
Beyond Air is basic financial strategy, we also chose to opportunistically sell loans at attractive pricing generating excess liquidity and eliminating some of our construction and future funding commitments.
During 2028 of our I sold of approximately $634 million of loans at a weighted average price of 98, 1% of par generating net proceeds of $208 million.
Given the significant amount of capital searching for yield the market for loan sales remains active and when and if appropriate we may consider additional sales on behalf of NRI.
Another highlight of 2020 was air ice can see considered use of its share repurchase plan and growing a ride we have maintained our commitment to only issue common stock above book value. In 2020, we remained thoughtful with respect to how our capital allocation could positively impact book value given.
The pandemic driven downward pressure on our common stock price.
Such we determined repurchasing common.
Common stock would achieve the best risk adjusted return on equity for our excess capital as a result, we repurchased over $128 million of common stock at an average price of $8.61.
Resulting in approximately 61 cents per share of book value accretion I also want to highlight that yesterday, we announced our board of directors authorized $150 million increase to our share repurchase plan, providing us with total capacity of $172 million.
Pivoting to the portfolio.
Our eyes focused for 2020 was proactive asset management, our efforts were greatly enhanced through the access to the resources of the Apollo platform, providing our team with extensive real time data and information in prior quarters. We have spoken extensively about the challenge within various challenges within various types.
The property types or specific assets in our portfolio given the underlying LTV of our loans the ongoing dialogue with our brokers borrowers and the measured recovery of the economy I am pleased to report there are no material changes to the credit quality of the portfolio or to our credit outlook.
Since the last call.
Anecdotally anecdotally with respect to our loans underlying the hospitality assets, we continue to see steady improvement within the roughly 65% of our portfolio, which are resort or destination locations, while business oriented hotels continue to face challenges with respect.
Back to the Anaheim Hotel that was foreclosed upon and it's being carried as Oreo. The hotel is under contract to be sold in a hard deposits has been posted.
Lastly, with respect to our two of our largest focus loans. We have had positive momentum at both of the Miami design District loan and the Fulton Street loan.
With respect to Miami design since the last earnings call, we entered into a partnership with an extremely well regarded local developer who is converting the space into an open air marketplace and working on leasing of the existing space.
While retaining the option to redevelop the property at a later date.
On Fulton Street, we partnered with the best in Class, New York developer to redevelop the site into a multifamily property the.
One additional loan I want to discuss is our first mortgage secured by an urban retail property in London.
The property is located in one of the most traffic locations on Oxford Circus in London and it houses.
GAAP shops, and nike's flagship stores.
Last quarter top shops parent company Arkady of filed for bankruptcy. This was an outcome. We considered when we underwrote the loan as we were extremely familiar with the credit the.
The property is currently being marketed for sale and the initial feedback from the profit indicates the proceeds will be well in excess of all of our alone. The loan is currently accruing interest, including default interest and we believe we are well covered.
As we look ahead, we believe <unk> is well positioned to capitalize on the significant increase in real estate transaction activity, which began in the latter part of 2020 and has continued in 2021 the.
The commercial real estate market has benefited benefiting from the low interest rate environment and record amounts of dry powder and real estate funds, which is leading to increased deal activity.
And to enter 2021 with excess capital on its balance sheet and is positioned to deploy that capital into attractive risk adjusted return opportunities also given the current strength of the capital markets. We believe <unk> will be repaid on some of its existing loans, thereby providing additional capital to be in.
Invested.
Apollo's real estate credit platform remained active throughout 2020 and continues to see a tremendous amount of transaction flow, which is which has enabled ari to thoughtfully build a pipeline of potential new deals.
Importantly, ari's lenders have indicated their willingness to.
To provide a ride.
With financing for new transactions, and we are confident that level of Levered returns achievable today are consistent with the returns on the capital we are expecting back this year.
Our focus on capitalization capital allocation will remain on generating the most attractive risk adjusted Roe.
We will remain steadfast to our credit first methodology, and we will be prudent in our capital management in funding New business. We recently committed to our first transaction in 2021 of large first mortgage loan in Europe and the pipeline continues to build.
Before I turn the call over to Jay I want to just highlight the rise of 104% dividend coverage in 2020 and reiterate the <unk> existing portfolio was able to generate distributable earnings in excess of the current annualized dollar 40 dividend per common share. This is achievable even with ex U.
Cash liquidity on our balance sheet through most of 2020, our common stock offers investors an excess of in the 11 plus percent dividend yield, which we believe is extremely attractive in this current low yield environment with that I'll turn the call over to Jay to review our financial results.
Thank you Stuart.
Before I give you earnings on why don't you discussed on the secured financing arrangements.
From March 15th of last year total deleveraging on our feet on the has billions of financing arrangements.
$190 million.
Which is less than 6% of our outstanding balance.
Our strong relationships with key Counterparties were beneficial as we navigate the volatility in the capital markets two of the past 11 months.
We also proactively working with the financing partners and the availed ourselves of the benefits of the brought on Apollo platform.
To ensure adequate liquidity and term out financing.
Moving to earnings I.
I wanted to highlight the at the beginning this quarter.
We will use the words distributable earnings instead of operating earnings.
No change from the definition.
For the fourth quarter of 2020 of distributable earnings prior to the realized loss on investments one of $51 million.
36 cents per share of common stock.
Distributable earnings were $21 million on <unk>.
<unk> per share.
And the realized loss on investments was comprised of.
$25 million on previously recorded specific seasonal reserves.
The $5 million on non sense.
The restructurings.
Yes.
GAAP net income available to common stockholders was $33 million on 23 cents per share.
And the common stock dividends from the quarter was 35 cents per share.
As of December $30 on Regeneracy citizens of remained relatively unchanged planning.
Planning by three basis points to 68 basis points.
And our total seasons of the mouse and the people into two 4% volume.
Moving to book value.
GAAP book value per share prior to the agenda of system to serve was $15.38.
As compared to $15 30 at the end of the third quarter.
The increase was primarily due to the accretive share repurchases as Stuart mentioned earlier.
Since the end of the first quarter of last year.
Book value prior to general seasons is the increased by 44 cents per share.
At quarter end on our system has the billion loan portfolio and it really the average unlevered yield of six 2%.
And the remaining fully extend the term of just under two years.
Approximately 90% of floating rate loans have LIBOR floors that are in the money today.
With the weighted average floor of 1.46%.
The completed $109 million of add on fundings during the quarter.
The slip those loans, bringing the total add on fundings to $413 million of 2020.
And lastly.
With respect to of borrowings we are in compliance with all the covenants and continue to maintain strong liquidity.
As of today, we have $250 million of cash on hand, $30 million of approved Undrawn credit capacity.
And one $1 billion in unencumbered loan assets.
With that we'd like to open the line for questions. Operator. Please go ahead.
Thank you.
As a reminder to ask a question you will need the press star one on your telephone to withdraw your question press the pound key.
Our first question comes from.
Doug Harter with credit Suisse. Your line is open.
Thanks Kim.
You talk about the.
But liquidity and kind of how you're thinking about you know kind of what a normalized the level is.
Over what time period are what events, you kind of want to see to.
The move there.
Yes sure Doug.
We talked about this on the last call as well look I think.
Just to frame things in context.
I think before the pandemic hit on them you know we were generally running the company at call it plus or minus <unk>.
$75 million to $100 million of call of call it excess liquidity at any point in time, obviously post pandemic.
That number got well north of <unk>.
$500 million and we've since taken it down.
The call it into the three to 400 million dollar range.
I think as we move through as the economy starts to recover.
We're going to continue to move more towards running the company.
The way, we used to I think that will take time I'd.
I'd also encourage you to.
Perhaps not over focused on anything from a quarterly basis, because it certainly possible debt as we move forward.
At the end of any quarter, there are going to the times, where we are highly confident that we're going to get paid back on something.
But it might not yet show up in <unk>.
And the quarterly numbers, but I think sitting here today.
Looking out over the over the next year.
Given our expectations for recovery in the economy, I think youre looking out over the next year, plus or minus 12 to 18 months to start moving back towards.
A level, where we used to run the company, but there'll be a progression. So youll start seeing it ticked down overtime.
And I guess, along along those lines.
Would you can I guess, if the opportunities presented themselves.
Would you consider kind of tapping into those unencumbered assets to to create extra liquidity for investments or kind of how do you think about that as.
An additional source of liquidity kind of at some point.
Look the the Genesis of the unencumbered asset pool. Historically has been we were always strident in not putting any leverage whatsoever on our individual mezzanine loans, even though we knew there was leverage capacity against those loans I would say sitting here today.
We still very much view that pool of unencumbered assets.
Liquidity source of last resort and not a.
The leverage source that we would choose to use to necessarily play offense with in the short term.
Got it thank you Stuart.
Sure.
Thank you. Our next question comes from Steve Delaney with JMP Securities. Your line is open.
Thanks, Good morning, everyone.
Good morning, Stuart This may.
First let me applaud the buyback.
Obviously, the stock's moved up nicely from the average of $9 in the fourth quarter, but it's it's nice for you to have that in your pocket.
Good for you all for for executing on it in the fourth quarter.
Stuart just may really be more directed to Jay, but we're getting to the point now where things that maybe 612 months ago. There were specific reserves are underneath Cecil that were signed on some projects and you work, whether it's one sales or other types of transactions you're now working through.
Those to the point, where we're having realized losses, which I think we were all kind of focused on because of the.
Your your policy on your approach that when there is a realized loss of that it's going to impact distributable income. So I guess, what I'd like to understand whether the third quarter of do you know as an example with the.
With the 25 million of the 5 million dollar items.
Jay if you could kind of describe the events timing or events.
If there are different types of things beyond just obviously of foreclosure and then the sale. If there are other types of developments are transactions that would lead you to look at that and say okay. Now now we're going to realize this loss on top.
Apologize for the rambling question I hope the debt.
The interest came through.
No that's fine.
Why don't you comment and then if I have anything to add I'll add on the back thanks Stuart.
Sure. That's a good question so the way the way.
Realized losses on defined as the airplane the earlier of.
When the loan is actually result.
We believe it is near certain it is near certain that this loss will be realized to the.
The <unk>.
<unk> 5 million that we just talked about that as comprise the.
The largest number there is of course springs loan, which was about $14 million real.
The realized loss that occurred in the fourth quarter and recently the last of the last year on it.
And about $10 million.
Some of the Pittsburgh Zone, which was the structured where we actually flew gains.
Some of it some of the some of the reserve.
On the.
Alone is a map of phone.
The examples like of troubled debt restructuring, where you exactly the work with the borrower.
Four day principle, that's a realized loss, but then the.
At the lower balance, it's now performing well.
Actually I was.
Actually it was an actual acquisition so in connected home with an acquisition, we reduced our loan amount. So so it's a new borrower with fresh equity into the deal.
The call of the concepts. So I see some of that we took or the concepts of the same we took a reserve whether it's the new borrower of the existing borrower someone's willing to put in fresh equity in exchange for us sort of reconstituting the auto loan either the lower balance or other terms within the loan so that cash.
On Sepsis, Inc.
Okay, and the term resolution in Bethesda, I guess do I understand that that is whatever economic interest in those remaining for sale condos debt that is off your books off your balance sheet and it's now.
Somebody else's.
Issue.
We have no ongoing involvement with the project units have been so we're.
Okay, Great Alright, well, that's what I heard today. Thanks for the thanks for the color I appreciate it.
Yep.
Thank you. Our next question comes from Jade Rahmani with K B W. Interest your line is open.
Thank you very much.
On the credit outlook.
To start with our their watch list loans beyond the lungs.
In the specific seats of reserved and definitely good to see final resolution on Bethesda.
As the district the hotel.
Hotel and the Pittsburgh, receiving that additional equity income recapitalized.
There are loans that take more or less time from an asset management perspective, but I think the weighted and I.
Look it's a portfolio of 60 loans.
Watch list or not focus list or not.
We're high touch on all of the different loans, we've made I think at this point of J D.
Obviously the reserves, we've taken to date on specific assets or those that we require.
Require of reserves.
We're close to everything going on in the portfolio and the conclusion at this point as indicated in my comments is that overall credit outlook is fairly stable and nothing else at this point requires any sort of individual reserves.
And in terms of the commercial real estate overall, we haven't been seeing through the CMS market of gradual improvement in delinquency rates, however grades of loans.
Loans and Grace period have been modestly picking up suggesting there could be potentially an increase in the delinquency rate in.
Of the months to come.
Do you think that the industry overall is sort of the worst is behind it in terms of credit resolution or 'twenty 'twenty. One is really going to be of continued story of commercial real estate credit loan workouts.
I think it's a complicated question because a lot of it depends on what happens with the economy going forward I think the you know.
The optimistic view would be the.
We seem to be on the path toward recovery in terms of addressing the pandemic and one of the economy is headed and the other added benefit for.
For real estate is that there is an abundance of capital on the world.
Can either be access by.
Those are already facing credit challenges on their assets or those looking to opportunistically.
The step into assets that are challenged and I think our sale of the.
The hotel in on.
Items reflected of that I think yes, I think it really depends on the trajectory going forward and I think it really your question really hinges on do we continue along the path that most the lever on right now or is there another unexpected shocks to the system overall, it's not to say there won't be workouts.
That take place, it's not to say that theyre still on broadly speaking.
On the real estate market.
Assets that need to be addressed.
But.
I think to your question, which is the things changed dramatically I think it really depends on what happens with the overall economy and the path of recovery.
Thank you I appreciate that the total sees the reserve is at about three percentage of the portfolio, which I think is amongst the highest of your peers.
Do you also have the ability to provide us the dollar amount or percentage of loans on non accrual.
The dollar amount or percentage of loans that had been modified since March and finally, the percentage interest the collections.
A lot of questions there.
In terms of the amount of loans on non accrual, it's plus or minus around $500 million of roughly about $200 million of our equity on a net basis. If you think about levered Roe or things like that.
I am going to Hilary.
Hillary circle back with you after the call with the <unk> with her on Jay and we can get you the rest of the rest of the information.
Pretty quickly.
Okay. Thank you and then just lastly in terms of originations.
When when do you think we should start to model in.
Aside from the funding commitments you've made a pickup in originations should we be thinking of as early as the first quarter.
I think economically you probably I think headline wise as early as late in the first quarter I think economically you would probably think in terms of things closing and economics benefiting us in second quarter, and then going forward from there.
Thank you for taking the questions.
Thanks Jay.
Thank you. Our next question comes from Charlie <unk> with J P. Morgan Your line is open.
Hey, good morning, guys. Thanks for taking the questions most have been covered already but I'm.
Had a question around.
Distributable earnings excluding the realized losses do you think that there's potentially.
Ignores or possibly distorts the impact of the underlying collateral credit performance. The I understand you guys did.
The disclosed distributable EPS also including the impact of the realized losses, but do you think there could be some noise in there for investors with two distributable earnings numbers as the sector transitions away from core operating and into distributable earnings.
Yeah look I can't comment on how people are going to interpret the information I think from our perspective.
The reason, we presented it both ways.
First of all of you think about things from a book value perspective shifting something from a previously taken reserves.
<unk> a realized loss is a net zero from a book value impact. So I think that is.
Relative to how people interpreted our numbers and then if you think about.
What we and the industry at large are trying to.
Helped people understand in terms of using distributable earnings again.
Most of the realized loss that was taken in the fourth quarter.
We're on assets that were not.
Providing any meaningful input to our earnings to begin with so again I think.
I think it's there for people to interpret I think it is fairly consistent with the way we were treating things back in the old.
Operating earnings nomenclature period.
So that was sort of our thinking.
Behind it.
Okay got it. Thank you and then share given the the upsize.
Share buyback how are you guys.
On a weighing the bias towards share repurchases versus deploying towards new deals you know on in sort of the range of.
Investment opportunities available to you or.
<unk> deleveraging.
Where do you see that today and maybe how the how do you see that evolving throughout 2021.
Yes.
The <unk>.
Bias.
At a high level is too.
The b and the market originating deals growing the portfolio of replacing assets in the portfolio I think the the.
The purpose of the share repurchase plan.
To be there to the extent you get.
Unforeseen shocks to the capital markets, which sends stock prices to levels that we think from an economic perspective are just too compelling.
To ignore.
Obviously, it was pretty clear that we were a fairly frequent buyer of the stock when it was at $9 and below.
I think as it's moved up nicely, which I think it was.
<unk> Delaney mentioned on the call earlier.
If you look at just a pure.
ROE perspective on buying stock back or Levered Roe on investing.
Capital Youre, starting to get to the point where.
It's pretty close if not more compelling to be putting dollars into loans and.
The last overarching comment would be.
In most instances ties are going to go the two investing in the business keeping the business going staying in the market and doing deals. So.
It's fair to look at the share repurchase plan.
The sums.
<unk> to be used when you see.
Severe.
Impacts of the stock in the capital markets.
Understood. Thanks, Stuart I appreciate all of the color.
Thanks Joel.
Thank you. Our next question comes from Tim Hayes with B Tid. Your line is open.
Hey, good morning, Stuart Thanks for taking my questions here.
My first one yeah and I appreciate the color you gave on some of the.
More notable loans in your prepared remarks, but if we could maybe just focus on some of these and dig a little bit deeper the.
On the urban retail UK loan that defaulted in the quarter.
It sounds like there should be of positive resolution, but just curious if you have any sense of when the sale may close and if you expect net may trigger of repayment of your loan ahead of the contractual maturity date.
Yeah, I mean, not to delve too much into it and could speak offline so right to put things in perspective.
Top shop, which is the tenant.
Obviously, it's in the process of being sold at this point once that.
On a transaction is resolved then we can focus.
On the real estate I think it is likely that we will be in the market.
This year.
Selling the selling the asset and I would say the current expansion ex expectation is that that will get wrapped up at some point this year.
Understood.
Helpful and then.
<unk>.
On the Red Sky capital loans, you know I appreciate the comments there, but maybe if you could just give us a little bit more color.
In Miami on how lease up has been in that asset and then with the Brooklyn asset just.
How redevelopment has been going there and any expected timeline.
Debt, you can provide and whether that's moving along on schedule.
Yeah, I think working in reverse of your question I think with respect to Brooklyn for those that know the site.
At the time.
We got more active in the project the demolition hasn't yet taken place. So if anybody wants to drive by the site.
These days you will now see the demolition is well underway.
And then Youre looking at day.
A couple of year timeline to actually physically construct what is going to be constructed there which will be approximately.
600 multifamily units of MC.
Of market rate and affordable and then there'll be some.
Retail underneath the multifamily but.
We're very happy with the partnership we formed on that transaction and things are moving.
At a pace that is.
The encouraging and.
It's now just the construction deal and we will continue to update on progress, but it's moving the way it needs to move I think with respect to Miami.
We formed the partnership I referred to fairly recently.
I would say there has been fairly positive interest both from the market.
As well as.
Prospective tenants.
As things of of material nature of occur on the leasing side, who will provide updates as needed.
And then.
Longer term.
Yes, I think there was a bigger decision to be made use of the timing and participation or not in the redevelopment, but we will provide updates on the lease income as things become material.
Okay.
Okay. That's helpful.
And I'm just going to keep the hunter on the list here if that's okay. The other three assets I think that we.
Keep an eye on or had been keeping an eye on are the day.
Flower hotel in DC, the Cincinnati retail center of the Liberty Center, and then one of 11 West 57. So in any order you want to take those if there is any material updates the pass along whether it's encouraging or now the helpful.
Again, if it was truly material we'd spend a lot more time talking about it I think of no particular order.
On the Liberty Center asset Theres actually been.
A fair bit of leasing that's taking place.
On again.
There's still a ways to go there. We've commented previously that part of the ultimate exit on Liberty Center will be shifting some of the nature of the retail to other uses I would say that the two most positive things that have occurred recently on Liberty Center is that theres been a.
A decent sized.
The non retail lease signed recently that begins to change the nature of that asset and then.
There is I would say exploratory work being done on the ability to use some of the land available Liberty Center.
To add additional multifamily around the site, which would be.
The net positive both economically as well as also agreed on additional density at the location.
Think on the Mayflower.
<unk>.
The per my comments on.
Business oriented hotels still being somewhat challenged I would say.
I think the May flower is.
Doing as best as they can in this environment either with the mix of.
Call It <unk>.
And occupancy as well of day.
Locked into some bigger uses related to.
On.
Whether it's health care workers National Guard, others that are looking for places to house.
How is the individuals that have been drawn into Washington, given recent events in Washington D C, but I'd say there is still.
Work to be done on Mayflower and of the three assets you mentioned Mayflower might be the most closely tied to just an overall recovery of the economy right. It was pre pandemic.
And then I take on 111 with the West.
57th Street.
Construction continues.
There continues to be.
Good at good interest from perspective buyers, which I would say, it's very consistent with the dramatic uptick in residential sales activity in Manhattan in general.
Over the later December through early February period, there has been a lot of condo activity.
Throughout Manhattan, obviously, youre going to see.
More more deal flow and things that are of lower price point, but I would say, we're pretty encouraged by what we're seeing in terms of prospective buyers and wood.
I would hope that there'll be more announcements on units being put under contract sooner rather than later on at the asset.
Yes, that's good to hear.
And one question broadly about these assets and then I'll hop back in the queue, but just on weather.
Whether it was material or not I mean did you see movements in your specific reserves against these assets I'm just curious if we added.
Additional reserves to any of these loans or by first of relief. Some given some of the positive comments you just made.
No.
Now moving on the reserves that Liberty Center on Mayflower, sorry, Jay and just to be clear, we've never taken the reserves at 111 West 57th Street.
Great.
So just to just to clarify that.
Okay, well guys I appreciate you, taking my questions and I'll hop back in the queue.
Thanks, Tim.
I'm showing there is no other questions in the queue I'd like to turn the call back to Mr. Roth for any closing remarks.
Operator, Thank you and thank you to all of you for participating today.
Ladies and gentlemen. This concludes today's conference call. Thank you for participating you may now disconnect everyone have a great day.
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