Q4 2025 Adamas Trust Earnings Call

February 19, 2026

Speaker #1: Face presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be open for questions. If you have a question, please press the star followed by 11 on your touch-tone phone.

Operator: Today's presentation, all parties will be in listen-only mode. Following the presentation, the conference will be open for questions. If you have a question, please press the star followed by one one on your touchtone phone. If you would like to withdraw your question, please press star one one again. If you are using speaker equipment, we do ask that you please lift your handset before making selection. This conference is being recorded on Thursday, 19 February 2026. I would now like to turn the conference over to Kristy Mousalem, Investor Relations. Ma'am, please go ahead.

Speaker #1: If you would like to withdraw your question, please press star 11 again. If you are using speaker equipment, we do ask that you please lift your handset before making selection.

Speaker #1: This conference is being recorded on Thursday, February 19, 2026. I would now like to turn the conference over to Kristine Mussallem, Investor Relations, ma'am.

Speaker #1: Following the presentation, the conference will be open for questions. If you have a question, please press the star followed by 11 on your touch-tone phone.

Speaker #1: Please go ahead.

Speaker #1: If you would like to withdraw your question, please press star one one again. If you are using speaker equipment, we do ask that you please lift your handset before making a selection.

Speaker #2: Good morning and welcome to the fourth quarter 2025 earnings call for Atomist Trust. A press release and supplemental financial presentation with Atomist Trust's fourth quarter 2025 results was released yesterday.

Kristi Mussallem: Good morning, and welcome to the Q4 2025 Earnings Call for Adamas Trust. A press release and supplemental financial presentation with Adamas Trust's Q4 2025 results was released yesterday. Both the press release and supplemental financial presentation are available on the company's website at www.adamastreit.com. Additionally, we are hosting a live webcast of today's call, which you can access in the Events and Presentations section of the company's website. At this time, management would like me to inform you that certain statements made during the conference call, which are not historical, may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Adamas Trust believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained.

Speaker #1: This conference is being recorded on Thursday, February 19th, 2026. I would now like to turn the conference over to Kristine Mussallem, Invest Relations, ma'am.

Speaker #2: Both the press release and supplemental financial presentation are available on the company's website at www.atomistreach.com. Additionally, we are hosting a live webcast of today's call, which you can access in the events and presentations section of the company's website.

Speaker #1: Please go ahead.

Speaker #2: Good morning and welcome to the fourth quarter 2025 earnings call for Adams Trust. A press release and supplemental financial presentation with Adams Trust's fourth quarter 2025 results was released yesterday.

Speaker #2: At this time, management would like me to inform you that certain statements made during the conference call, which are not historical, may be deemed forward-looking statements within the meaning of the private securities litigation reform act of 1995.

Speaker #2: Both the press release and supplemental financial presentation are available on the company's website at www.adamsreach.com. Additionally, we're hosting a live webcast of today's call, which you can access in the events and presentations section of the company's website.

Speaker #2: Although Atomist Trust believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained.

Speaker #2: Factors and risks that could cause actual results to differ materially from expectations are detailed in yesterday's press release and from time to time in the company's filings with the securities and exchange commission.

Kristi Mussallem: Factors and risks that could cause actual results to differ materially from expectations are detailed in yesterday's press release and from time to time in the company's filings with the Securities and Exchange Commission. Now, at this time, I would like to introduce Jason Serrano, Chief Executive Officer. Jason, please go ahead.

Speaker #2: Now, at this time, I would like to introduce Jason Serrano, Chief Executive Officer. Jason, please go ahead.

Speaker #2: Although Adams Trust believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained.

Speaker #3: Hello. Thank you for joining us today to discuss our 2025 fourth quarter results. With me this morning is Nick Ma, President, and Kristine Nario, our CFO.

Jason Serrano: Hello. Thank you for joining us today to discuss our 2025 Q4 results. With me this morning is Nicholas Mah, President, and Kristine Nario, our CFO. We are excited about entering a new year, as 2025 represented a strategic inflection point for the company, characterized by significant balance sheet growth, accelerating profitability, and a strategic expansion into Constructive, a leading business purpose loan originator. We exited 2025 stronger and larger than at any point in our history. The transformation of Adamas over the past year has been deliberate and decisive. We expanded scale, materially enhanced recurring earnings power, strengthened the balance sheet, and positioned the company for durable long-term growth. Our Q4 results are another validation to our strategy, which reinforce our confidence in the trajectory ahead.

Speaker #2: Factors and risks that could cause actual results to differ materially from expectations are detailed in yesterday's press release and, from time to time, in the company's filings with the Securities and Exchange Commission.

Speaker #3: We are excited about entering a new year. As 2025 represented a strategic inflection point for the company, characterized by significant balance sheet growth, accelerating profitability, and a strategic expansion into constructive, a leading business purpose loan originator.

Speaker #2: Now, at this time, I would like to introduce Jason Serrano, Chief Executive Officer, Jason, please go ahead.

Speaker #3: Hello. Thank you for joining us today to discuss our 2025 fourth quarter results. With me this morning is Nick Ma, President, and Kristine Nario, our CFO.

Speaker #3: We exited 2025 stronger in larger-than-at-any point in our history. The transformation of Atomist over the past year has been deliberate and decisive. We expanded scale, materially enhanced recurring earnings power, strengthened the balance sheet, and positioned the company for durable, long-term growth.

Speaker #3: We are excited about entering a new year. As 2025 represented a strategic inflection point for the company, characterized by significant balance sheet growth, accelerating profitability, and a strategic expansion into Constructive, a leading business purpose loan originator.

Speaker #3: Our Q4 results are another validation to our strategy, which reinforce our confidence in the trajectory ahead. Salient 2025 company performance highlights include 3.1 billion investment portfolio expansion, a 44% increase to earnings available for distribution, year over year, where we generated over $100 million of net income leading to a 15% increase to our common dividend.

Jason Serrano: Salient 2025 company performance highlights include $3.1 billion investment portfolio expansion, a 44% increase to earnings available for distribution year over year, where we generated over $100 million of net income, leading to a 15% increase to our common dividend. All these factors contributed to generating a 36% cumulative total stockholder return, a transformational year where we also grew company book value. We stayed firm with the disciplined capital allocation, active portfolio management, and a clear strategic vision. By meaningfully increasing our allocation to agency RMBS, we improved liquidity, reduced credit volatility, enhanced financing flexibility, and strengthened the trajectory of earnings. The balance sheet today is materially more resilient than it was a year ago and positioned well for 2026.

Speaker #3: We exited 2025 stronger and larger than at any point in our history. The transformation of Adams over the past year has been deliberate and decisive.

Speaker #3: We expanded scale, materially enhanced recurring earnings power, strengthened the balance sheet, and positioned the company for durable, long-term growth. Our Q4 results are another validation to our strategy, which reinforce our confidence in the trajectory ahead.

Speaker #3: All these factors contributed to generating a 36% cumulative total stockholder return, a transformational year where we also grew company book value. We stayed firm with the disciplined capital allocation active portfolio management and a clear strategic vision.

Speaker #3: Salient 2025 company performance highlights include a $3.1 billion investment portfolio expansion, a 44% increase to earnings available for distribution year-over-year, where we generated over $100 million of net income, leading to a 15% increase to our common dividend.

Speaker #3: By meaningfully increasing our allocation to agency RMBS, we improved liquidity, reduced credit volatility, enhanced financing flexibility, and strengthened the trajectory of earnings. The balance sheet today is materially more resilient than it was a year ago, and positioned well for 2026.

Speaker #3: All these factors contributed to generating a 36% cumulative total stockholder return—a transformational year where we also grew company book value. We stayed firm with disciplined capital allocation, active portfolio management, and a clear strategic vision.

Speaker #3: The addition of a powerful new earnings engine in the full acquisition of constructive strategically positioned Atomist to benefit from both stable spread income and scalable origination economics.

Jason Serrano: The addition of a powerful new earnings engine in the full acquisition of Constructive strategically positioned Adamas to benefit from both stable spread income and scalable origination economics, a combination that we believe differentiates our platform. As an update to Q4, GAAP book value and adjusted book value increased by 4.3% and 2.4%, respectively. Continuing the positive momentum we generated throughout the year, quarterly EAD of $0.23 per share fully covered our dividend, but declined by $0.01 sequentially. This slight reduction from last quarter was anticipated and directly tied to the J-curve effect discussed in our Q3 communication related to the integration of Constructive. Importantly, this temporary negative impact reflects upfront integration and scaling costs, not structural earnings pressure.

Speaker #3: A combination that we believe differentiates our platform. As an update to fourth quarter gap book value and adjusted book value increased by 4.3% and 2.4% respectively.

Speaker #3: Continuing the positive momentum, we generated throughout the year. Quarterly EAD of 23 cents per share, fully covered our dividend, but declined by 1 cent sequentially.

Speaker #3: The addition of a powerful new earnings engine in the full acquisition of constructive, strategically positioned Adams to benefit from both stable spread income and scalable origination economics.

Speaker #3: This slight reduction from last quarter was anticipated and directly tied to the JA curve effect discussed in our third quarter communication related to the integration of constructive.

Speaker #3: A combination that we believe differentiates our platform. As an update, fourth quarter GAAP book value and adjusted book value increased by 4.3% and 2.4%, respectively.

Speaker #3: Importantly, this temporary negative impact reflects upfront integration and scaling costs, not structural earnings pressure. As we transitioned from integration to production, we expect constructive to be a positive contributor to EAD in the first quarter.

Speaker #3: Continuing the positive momentum, we generated throughout the year. Quarterly EAD of 23 cents per share, fully covered our dividend, but declined by 1 cent sequentially.

Jason Serrano: As we transition from, from integration to production, we expect Constructive to be a positive contributor to EAD in Q1. Throughout 2025, we found scaling agency RMBS to be both an attractive investment on an absolute and relative basis, providing mid- to high-teens equity returns. We increased the company's agency RMBS portfolio by $3.4 billion, or to 56% of company capital, from 23% a year earlier, at an attractive average spread to Treasury, interpolated between 5- to 10-year maturities of 139 basis points. The strategic reallocation of capital throughout the year enhanced liquidity and balance sheet flexibility, also lowered our credit exposure and tail risk, as well as increased visibility into book value performance. Now, against that base, Constructive's DSCR origination platform introduces significant upside potential.

Speaker #3: Throughout 2025, we found scaling agency RMBS to be both an attractive investment on an absolute and relative basis. Providing mid to high teens equity returns.

Speaker #3: Importantly, this temporary negative impact reflects upfront integration and scaling costs, not structural earnings pressure. As we transitioned from integration to production, we expect Constructive to be a positive contributor to EAD in the first quarter.

Speaker #3: We increased the company's agency RMBS portfolio by 3.4 billion or to 56% of company capital from 23% a year earlier. At an attractive average spread to treasury, interpolated between 5 to 10-year maturities of 139 basis points.

Speaker #3: Throughout 2025, we found scaling agency RMBS to be both an attractive investment on an absolute and relative basis. Providing mid to high teens equity returns.

Speaker #3: The strategic reallocation of capital throughout the year enhanced liquidity and balance sheet flexibility, also lowered our credit exposure and tail risk, as well as increased visibility into book value performance.

Speaker #3: Now, against that base, constructive's DSCR origination platform introduces significant upside potential. As volume scales and efficiencies are realized, we believe the earnings contribution from the DSCR production from both a gain on sale as well as interest income from loans held can expand materially.

Jason Serrano: As volume scales and efficiencies are realized, we believe the earnings contribution from the DSCR production from both a gain on sale as well as interest income from loans held can expand materially. We are excited to demonstrate the operating leverage embedded within our business model in the new year. Despite the transformation of the company, Adamas shares continue to trade at a substantial discount to intrinsic value. At year-end, the shares traded at a 31% discount to book value. Even more compelling, the market capitalization represents approximately a 14% discount to just the agency capital held on our balance sheet alone.

Speaker #3: We are excited to demonstrate the operating leverage embedded within our business model in the new year. Despite the transformation of the company, Atomist shares continue to trade at a substantial discount intrinsic value.

Speaker #3: Now, against that base, Constructive's DSCR origination platform introduces significant upside potential. As volume scales and efficiencies are realized, we believe the earnings contribution from the DSCR production from both a gain on sale as well as interest income from loans held can expand materially.

Speaker #3: At year-end, the shares traded at a 31% discount to book value, even more compelling the market capitalization represents approximately a 14% discount to just the agency capital held on our balance sheet alone.

Speaker #3: We are excited to demonstrate the operating leverage embedded within our business model in the new year. Despite the transformation of the company, Adams shares continue to trade at a substantial discount to intrinsic value.

Speaker #3: In practical terms, the market in 2025 and continuing in early 2026 is assigning limited to no value to our non-agency and multifamily holdings, our scaled origination platform with an exciting embedded earnings growth track, and our ability to grow book value.

Jason Serrano: In practical terms, the market in 2025, and continuing in early 2026, is assigning limited to no value to our non-agency and multifamily holdings, our scaled origination platform with an exciting embedded earnings growth track, and our ability to grow book value. We believe the discount creates compelling upside potential as we continue to execute and expand earnings and demonstrate sustained book value creation. We have entered 2026 with strong momentum. In Q1, we are off to an exceptional start, as adjusted book value is up between 3 to 4%. At the same time, Constructive DSCR originations are beginning to contribute to earnings as expected. As acquisition efficiencies are realized, we see a clear path to expanding EAD in 2026.

Speaker #3: At year-end, the shares traded at a 31% discount to book value, even more compelling, the market capitalization represents approximately a 14% discount to just the agency capital held on our balance sheet alone.

Speaker #3: We believe the discount creates compelling upside potential as we continue to execute and expand earnings and demonstrate sustained book value creation. We have entered 2026 with strong momentum.

Speaker #3: In the first quarter, we were off to an exceptional start. As adjusted book value is up between 3 to 4 percent. At the same time, constructive's DSCR originations are beginning to contribute to earnings as expected.

Speaker #3: We believe the discount creates compelling upside potential as we continue to execute and expand earnings, and demonstrate sustained book value creation. We have entered 2026 with strong momentum.

Speaker #3: As acquisition efficiencies are realized, we see a clear path to expanding EAD in 2026. We are highly encouraged by the early results and increasingly confident in the earnings power of the platform.

Jason Serrano: We are highly encouraged by the early results and increasingly confident in the earnings power of the platform. We approach 2026 with conviction and optimism in the macro backdrop. The progression of the Fed easing cycle, coupled with declining volatility, has created a favorable environment of lower rates and tighter spreads. The current administration's policy focus of improving housing affordability and reducing mortgage rates further reinforces our positive outlook on the residential assets. Our goal is to maintain flexibility, to capitalize emerging opportunities, and to direct capital to the most attractive risk-adjusted returns in the residential mortgage market. Dividend sustainability remains a core priority. In the year, we are focused on balancing competitive yields to expand recurring earnings with robust coverage and long-term capital preservation. We are energized by the opportunity in front of us and confident in our ability to deliver long-term value for our stockholders.

Speaker #3: In the first quarter, we were off to an exceptional start, as adjusted book value is up between 3% to 4%. At the same time, Constructive's DSCR originations are beginning to contribute to earnings as expected.

Speaker #3: We approach 2026 with conviction and optimism in the macro backdrop. The progression of the Fed easing cycle coupled with declining volatility has created a favorable environment of lower rates and tighter spreads.

Speaker #3: The current administration's policy focus of improving housing affordability and reducing mortgage rates further reinforces our positive outlook on the residential assets. Our goal is to maintain flexibility to capitalize emerging opportunities and to direct capital to the most attractive risk-adjusted returns in the residential mortgage market.

Speaker #3: We approach 2026 with conviction and optimism in the macro backdrop. The progression of the Fed easing cycle, coupled with declining volatility, has created a favorable environment of lower rates and tighter spreads.

Speaker #3: Dividend sustainability remains a core priority. In the year, we are focused on balancing competitive yields to expand reoccurring earnings with robust coverage and long-term capital preservation.

Speaker #3: We are energized by the opportunity in front of us and confident in our ability to deliver long-term value for our stockholders. At this time, I'll pass the call over to Nick for a market and strategy update.

Jason Serrano: At this time, I'll pass the call over to Nick for a market and strategy update.

Speaker #4: Thank you, Jason. As we close out 2025, we are excited to have delivered significant EAD expansion alongside book value growth. Looking forward, we are confident that our two-pronged approach of investing in agency RMBS and high-quality residential credit remains the optimal strategy for the current market environment.

Nicholas Mah: Thank you, Jason. As we close out 2025, we are excited to have delivered significant EAD expansion alongside book value growth. Looking forward, we are confident that our two-pronged approach of investing in Agency RMBS and high-quality residential credit remains the optimal strategy for the current market environment. In the quarter, we deployed $810 million into residential assets, reflecting another period of solid investment activity. Agency RMBS purchases totaled $347 million in the fourth quarter, as tightening spreads moderated the pace of acquisitions. In residential credit, we invested in $276 million of BPL rental loans and $181 million of BPL bridge loans. This marks the first quarter where rental loan purchases exceeded bridge loan purchases, reflecting our deeper utilization of Constructive origination capabilities in rental loans. We anticipate that this trend will continue.

Speaker #4: In the quarter, we deployed 810 million into residential assets. Reflecting another period of solid investment activity, agency RMBS purchases totaled 347 million in the fourth quarter as tightening spreads moderated the pace of acquisitions.

Speaker #4: In residential credit, we invested in 276 million of BPL rental loans and 181 million of BPL bridge loans. This marks the first quarter where rental loan purchases exceeded bridge loan purchases.

Speaker #4: In the quarter, we deployed $810 million into residential assets. Reflecting another period of solid investment activity, agency RMBS purchases totaled $347 million in the fourth quarter as tightening spreads moderated the pace of acquisitions.

Speaker #4: Reflecting our deeper utilization of constructive's origination capabilities in rental loans. We anticipate that this trend will continue. Our agency portfolio ended the year at 6.6 billion.

Nicholas Mah: Our agency portfolio ended the year at $6.6 billion, doubling in size over the course of 2025, constituting 63% of our investment portfolio and 56% of our equity capital. Agency RMBS now represents our single largest asset exposure. In Q4, our agency purchases were concentrated entirely in 5% coupon spec pools. We have continued to target low payup spec pools at or slightly under the current coupon, where we see the best balance of positive net interest margin, duration upside, and a more favorable convexity profile. Agency leverage also declined slightly in the quarter, falling to 7.7 times from 7.8 times. The pace of agency acquisitions was tempered by meaningful spread compression during the period.

Speaker #4: Doubling in size over the course of 2025. Constituting 63% of our investment portfolio, and 56% of our equity capital, agency RMBS now represents our single largest asset exposure.

Speaker #4: Reflecting our deeper utilization of Constructive's origination capabilities in rental loans, we anticipate that this trend will continue. Our agency portfolio ended the year at $6.6 billion.

Speaker #4: In the fourth quarter, our agency purchases were concentrated entirely in 5% coupon spec pools. We have continued to target low payout spec pools at or slightly under the current coupon.

Speaker #4: Doubling in size over the course of 2025. Constituting 63% of our investment portfolio, and 56% of our equity capital, agency RMBS now represents our single largest asset exposure.

Speaker #4: Where we see the best balance of positive net interest margin duration upside and a more favorable convexity profile. Agency leverage also declined slightly in the quarter.

Speaker #4: Falling to 7.7 times from 7.8 times. The pace of agency acquisitions was tempered by meaningful spread compression during the period. Current coupon agency spreads tightened by 16 basis points.

Speaker #4: In the fourth quarter, our agency purchases were concentrated entirely in 5% coupon spec pools. We have continued to target low payup spec pools at or slightly under the current coupon.

Nicholas Mah: Current coupon agency spreads tightened by 16 basis points, narrowing from 126 basis points to 110 basis points. Interest rate volatility fell meaningfully in Q4 and has steadily declined since the tariff announcement in April, providing the impetus for tightening spreads in agencies. Despite spreads normalizing toward longer-term averages, we continue to see value in agency RMBS. Our capital allocation to agencies is expected to grow through 2026 to between 60% and 70% of equity capital. We will adjust the pace and magnitude of future acquisitions opportunistically in response to spread movements and broader market conditions over the course of the year. Our BPL rental portfolio has almost doubled over the course of 2025, growing from $770 million to $1.4 billion.

Speaker #4: Where we see the best balance of positive net interest margin duration upside and a more favorable convexity profile. Agency leverage also declined slightly in the quarter.

Speaker #4: Narrowing from 126 basis points to 110 basis points. Interest rate volatility fell meaningfully in the fourth quarter and has steadily declined since the tariff announcements in April, providing the impetus for tightening spreads in agencies.

Speaker #4: Despite spreads normalizing toward longer-term averages we continue to see value in agency RMBS. Our capital allocation to agencies is expected to grow through 2026 to between 60% and 70% of equity capital.

Speaker #4: We will adjust the pace and magnitude of future acquisitions opportunistically in response to spread movements and broader market conditions over the course of the year.

Speaker #4: Despite spreads normalizing toward longer-term averages, we continue to see value in agency RMBS. Our capital allocation to agencies is expected to grow through 2026 to between 60% and 70% of equity capital.

Speaker #4: Our BPL rental portfolio has almost doubled over the course of 2025, growing from 770 million to 1.4 billion. This core strategy has benefited from the integration of constructive's origination platform alongside our disciplined underwriting standards.

Nicholas Mah: This core strategy has benefited from the integration of Constructive's origination platform, alongside our disciplined underwriting standards. Borrower metrics remain strong across the BPL rental portfolio, with a 748 average FICO, 71% average LTV, and 1.36x DSCR. Credit performance has been robust, with delinquencies remaining low at 1.4%, a direct result of our focus on credit quality. In 2025, we completed 4 securitizations across our whole loan portfolio. We continue to aggregate loans to execute securitizations, and we are on pace for executing 1 BPL rental deal a quarter, targeting a mid to high teens levered return. In Q4, non-QM triple A spreads remained range-bound at around 130 basis points. Into the new year, however, we have seen meaningful spread compression as non-agency triple A spreads have converged towards agency levels....

Speaker #4: We will adjust the pace and magnitude of future acquisitions opportunistically in response to spread movements and broader market conditions over the course of the year.

Speaker #4: Borrower metrics remain strong across the BPL rental portfolio. With a 748 average FICO, 71% average LTV, and 1.36x DSCR. Credit performance has been robust, with delinquencies remaining low at 1.4%.

Speaker #4: Our BPL rental portfolio has almost doubled over the course of 2025, growing from $770 million to $1.4 billion. This core strategy has benefited from the integration of Constructive's origination platform alongside our disciplined underwriting standards.

Speaker #4: A direct result of our focus on credit quality. In 2025, we completed four securitizations across our whole loan portfolio. We continue to aggregate loans to execute securitizations and we are on pace for executing one BPL rental deal a quarter.

Speaker #4: Borrower metrics remain strong across the BPL rental portfolio. With a 748 average FICO, 71% average LTV, and 1.36x DSCR, credit performance has been robust, with delinquencies remaining low at 1.4%.

Speaker #4: Targeting a mid to high teens levered return. In the fourth quarter, non-QM AAA spreads remain range-bound at around 130 basis points. Into the new year, however, we have seen meaningful spread compression as non-agency AAA spreads have converged towards agency levels.

Speaker #4: Creating a favorable environment for us to grow our BPL rental loan securitization program. We continue to take a selective approach in BPL bridge where the portfolio stands at 820 million of UPB, a decline from 1.2 billion at the beginning of the year.

Nicholas Mah: creating a favorable environment for us to grow our BPL rental loan securitization program. We continue to take a selective approach in BPL Bridge, where the portfolio stands at $820 million of UPB, a decline from $1.2 billion at the beginning of the year. The proliferation of revolving securitizations across a myriad of issuers has intensified buyer competition, driving yields tighter. At this juncture, we see more compelling opportunities in agencies and BPL rental, and we expect the size of the BPL Bridge portfolio to decline throughout 2026. Constructive continues to scale successfully, delivering its highest volume quarter of the year in Q4, with $474 million of originations. Constructive originated $1.8 billion worth of loans in 2025, with 93% of those originations in BPL rental, reflecting a strong alignment with our core credit strategy.

Speaker #4: Targeting a mid to high teens leverage return. In the fourth quarter, non-QM AAA spreads remain range-bound at around 130 basis points. Into the new year, however, we have seen meaningful spread compression as non-agency AAA spreads have converged towards agency levels.

Speaker #4: The proliferation of revolving securitizations across a myriad of issuers has intensified buyer competition, driving yields tighter. At this juncture, we see more compelling opportunities in agencies and BPL rental and we expect the size of the BPL bridge portfolio to decline throughout 2026.

Speaker #4: Constructive continues to scale successfully, delivering its highest volume quarter of the year in Q4 with 474 million of originations. Constructive originated 1.8 billion dollars' worth of loans in 2025 with 93% of those originations in BPL rental, reflecting a strong alignment with our core credit strategy.

Speaker #4: Origination quality remains robust, with a weighted average FICO of 751 and an average LTV of 74%. After our full acquisition of the platform, Constructive's loan production now matches closely with Adamus's investment criteria, retarget strong borrower profiles in the stable segments of the credit spectrum.

Nicholas Mah: Origination quality remains robust, with a weighted average FICO of 751 and an average LTV of 74%. After our full acquisition of the platform, Constructive's loan production now matches closely with Adamas's investment criteria. We target strong borrower profiles in the stable segments of the credit spectrum. Beyond disciplined credit underwriting, we have deliberately minimized originations at the margins of securitization, eligibility, and shifting institutional buyer mandates, concentrating production where institutional sponsorship and secondary market liquidity are the strongest. Over the past 12 months, new construction loans have represented less than 2%, and multifamily loans have represented less than 5% of Constructive's total origination. We expect Constructive to become a strategic earnings driver and sourcing engine for the firm. In the quarter, Adamas purchased 44% of Constructive's originations, deliberately striking a balance of investment portfolio growth and the cultivation of Constructive's third-party distribution network.

Speaker #4: Constructive continues to scale successfully, delivering its highest volume quarter of the year in Q4, with $474 million of originations. Constructive originated $1.8 billion worth of loans in 2025, with 93% of those originations in BPL rental.

Speaker #4: Reflecting a strong alignment with our core credit strategy. Origination quality remains robust, with a weighted average FICO of 751 and an average LTV of 74%.

Speaker #4: Beyond disciplined credit underwriting, we have deliberately minimized originations at the margins of securitization and eligibility and shifting institutional buyer mandates. Concentrating production where institutional sponsorship and secondary market liquidity are the strongest.

Speaker #4: After our full acquisition of the platform, Constructive's loan production now matches closely with Adamas's investment criteria. We target strong borrower profiles in the stable segments of the credit spectrum.

Speaker #4: Over the past 12 months, new construction loans have represented less than 2% and multifamily loans have represented less than 5% of Constructive's total originations.

Speaker #4: We expect Constructive to become a strategic earnings driver and sourcing engine for the firm. In the quarter, Adamus purchased 44% of Constructive's originations, deliberately striking a balance of investment portfolio growth and the cultivation of Constructive's third-party distribution network.

Speaker #4: Over the past 12 months, new construction loans have represented less than 2% and multifamily loans have represented less than 5% of Constructive's total originations.

Speaker #4: Through Constructive, we benefit from a capital light model that produces both gain on sale revenue and a proprietary investment pipeline. We have the flexibility to direct BPL rental originations to our portfolio or to the secondary markets as conditions warrant, and we expect a broadly balanced allocation between the two in 2026.

Nicholas Mah: Through Constructive, we benefit from a capital-light model that produces both gain on sale revenue and a proprietary investment pipeline. We have the flexibility to direct BPL rental originations to our portfolio or to the secondary markets as conditions warrant, and we expect a broadly balanced allocation between the two in 2026. In multifamily, we had another positive quarter of resolutions at an accelerated 39% annualized payoff rate. Performance has been strong throughout 2025, with only one delinquent and one restructured asset, both unchanged over the course of the year. As the portfolio seasons, we anticipate that the pace of payoffs to be higher than the historical average of 26%, and we will continue to redeploy the proceeds into our higher-yielding core strategies. Our diversified agency and credit portfolio, paired with Constructive's origination capabilities, provide us multiple avenues to grow earnings in this market environment.

Speaker #4: We expect Constructive to become a strategic earnings driver and sourcing engine for the firm. In the quarter, Adamas purchased 44% of Constructive's originations, deliberately striking a balance of investment portfolio growth and the cultivation of Constructive's third-party distribution network.

Speaker #4: In multifamily, we had another positive quarter of resolutions at an accelerated 39% annualized payoff rate. Performance has been strong throughout 2025, with only one delinquent and one restructured asset.

Speaker #4: Both unchanged over the course of the year. As the portfolio seasons we anticipate that the pace of payoffs to be higher than the historical average of 26%.

Speaker #4: And we will continue to redeploy the proceeds into our higher yielding core strategies. Our diversified agency and credit portfolio paired with Constructive's origination capabilities provide us multiple avenues to grow earnings in this market environment.

Speaker #4: Both remained unchanged over the course of the year. As the portfolio seasons, we anticipate that the pace of payoffs will be higher than the historical average of 26%.

Speaker #4: We are well positioned to extend this momentum in portfolio growth and earnings through 2026. I will now pass the call to Kristine to walk through our financial highlights.

Nicholas Mah: We are well-positioned to extend this momentum in portfolio growth and earnings through 2026. I will now pass the call to Kristine to walk through our financial highlights.

Speaker #4: And we will continue to redeploy the proceeds into our higher-yielding core strategies. Our diversified agency and credit portfolio paired with Constructive's origination capabilities provide us multiple avenues to grow earnings in this market environment.

Speaker #1: Thank you, Nick. And good morning, everyone. For the fourth quarter, we reported gap net income attributable to common stockholders of 41.6 million, or 46 cents per share, and earnings available for distribution of 23 cents per share, which fully covered our quarterly dividend.

Kristine Nario-Eng: Thank you, Nick, and good morning, everyone. For Q4, we reported GAAP net income attributable to common stockholders of $41.6 million, or $0.46 per share, and earnings available for distribution of $0.23 per share, which fully covered our quarterly dividend. After accounting for our $0.23 dividend, we generated a 6.85% economic return on GAAP book value and a 4.62% economic return on adjusted book value. For full year 2025, economic return on GAAP and adjusted book value was 12.72% and 11.1%, respectively. Our quarterly performance benefited from strong investment mark-to-market gains. We saw spread tightening across agency RMBS and certain portions of our residential loan portfolio, which increased asset valuations and contributed meaningfully to earnings.

Speaker #4: We are well-positioned to extend this momentum in portfolio growth and earnings through 2026. I will now pass the call to Christine to walk through our financial highlights.

Speaker #1: After accounting for our 23 cent dividend, we generated a 6.85% economic return on gap book value and a 4.62% economic return on adjusted book value.

Speaker #1: Thank you, Nick. And good morning, everyone. For the fourth quarter, we reported GAAP net income attributable to common stockholders of 41.6 million, or 46 cents per share, and earnings available for distribution of 23 cents per share, which fully covered our quarterly dividend.

Speaker #1: For full year 2025, economic return on gap and adjusted book value was 12.72% and 11.01% respectively. Our quarterly performance benefited from strong investment mark-to-market gains.

Speaker #1: After accounting for our 23-cent dividend, we generated a 6.85% economic return on GAAP book value and a 4.62% economic return on adjusted book value.

Speaker #1: We saw spread tightening across agency RMBS and certain portions of our residential loan portfolio. Which increased asset valuations and contributed meaningfully to earnings. In addition, gains on our interest rate swaps contributed to our results as swap spreads widened during the quarter.

Speaker #1: For full-year 2025, economic return on GAAP and adjusted book value was 12.72% and 11.01%, respectively. Our quarterly performance benefited from strong investment mark-to-market gains.

Kristine Nario-Eng: In addition, gains on our interest rate swaps contributed to our results as swap spreads widened during the quarter. Adjusted net interest income increased to $46.3 million in Q4 from $42.8 million in Q3, and net interest spread remained stable at 152 basis points. These results reflect our continued portfolio repositioning toward agency RMBS and BPL rental loans, while also benefiting from improved financing costs. Partially offsetting the positive valuation impact that I mentioned earlier, we recorded $14.9 million of realized losses, primarily related to discounted payoffs and resolution activity on certain non-performing residential loans and valuation adjustments on foreclosed properties, primarily related to our BPL Bridge portfolio. These actions reflect ongoing active portfolio management and credit resolution efforts, and in most cases, the realized losses had been substantially reflected in prior period marks.

Speaker #1: Adjusted net interest income increased to 46.3 million in the fourth quarter, from 42.8 million in the third quarter, and net interest spread remained stable at 152 basis points.

Speaker #1: We saw spread tightening across agency RMBS and certain portions of our residential loan portfolio, which increased asset valuations and contributed meaningfully to earnings. In addition, gains on our interest rate swaps contributed to our results, as swap spreads widened during the quarter.

Speaker #1: These results reflect our continued portfolio repositioning toward agency RMBS and BPL rental loans, while also benefiting from improved financing costs. Partially offsetting the positive valuation impact that I mentioned earlier, we recorded 14.9 million of realized losses, primarily related to discounted payoffs and resolution activity on certain non-performing residential loans and valuation adjustments on foreclosed properties.

Speaker #1: Adjusted net interest income increased to 46.3 million in the fourth quarter, from 42.8 million in the third quarter, and net interest spread remained stable at 152 basis points.

Speaker #1: These results reflect our continued portfolio repositioning toward agency RMBS and BPL rental loans, while also benefiting from improved financing costs. Partially offsetting the positive valuation impact that I mentioned earlier, we recorded $14.9 million of realized losses, primarily related to discounted payoffs and resolution activity on certain non-performing residential loans, and valuation adjustments on foreclosed properties.

Speaker #1: Primarily related to our BPL bridge portfolio. These actions reflect ongoing active portfolio management and credit resolution efforts, and in most cases, the realized losses had been substantially reflected in prior period marks.

Speaker #1: Turning to Constructive, the platform continued to demonstrate solid origination momentum during the quarter. Constructive generated 12.5 million in mortgage banking income, driven by higher origination volumes and related origination fees.

Kristine Nario-Eng: Turning to Constructive, the platform continued to demonstrate solid origination momentum during the quarter. Constructive generated $12.5 million in mortgage banking income, driven by higher origination volumes and related origination fees, partially offset by lower valuation on interest rate lock commitments and the prudent increase in loan repurchase reserves. Constructive incurred $4.3 million in direct loan origination costs and $10.2 million in direct G&A expenses, resulting in a $2 million loss for the quarter on a standalone basis. Direct G&A for Constructive increased in line with higher production volumes, the full quarter impact of consolidation, and also continues to include expenses associated with integration. We view these items as part of a normal progression of integrating and scaling the platform.

Speaker #1: Partially offset by lower valuation on interest rate lock commitments and the prudent increase in loan repurchase reserves. Constructive incurred 4.3 million in direct loan origination costs and 10.2 million in direct G&A expenses, resulting in a 2 million loss for the quarter on a standalone basis.

Speaker #1: Turning to Constructive, the platform continued to demonstrate solid origination momentum during the quarter. Constructive generated $12.5 million in mortgage banking income, driven by higher origination volumes and related origination fees, partially offset by lower valuation on interest rate lock commitments and the prudent increase in loan repurchase reserves.

Speaker #1: Direct G&A for Constructive increased in line with higher production volumes, the full quarter impact of consolidation, and also continues to include expenses associated with integration.

Speaker #1: We view these items as part of normal progression of integrating and scaling the platform. Origination activity and pipeline trends remain healthy, and as integration efforts moderate, and production continue to grow, we expect a more consistent earnings contribution from Constructive.

Speaker #1: Constructive incurred 4.3 million in direct loan origination costs and 10.2 million in direct G&A expenses, resulting in a 2 million loss for the quarter on a standalone basis.

Kristine Nario-Eng: Origination activity and pipeline trends remain healthy, and as integration efforts moderate and production continue to grow, we expect a more consistent earnings contribution from Constructive. At acquisition, we estimated Constructive to generate approximately 15% annual equity return, and our current expectations remain aligned with that target. Total consolidated Adamas G&A expenses were $25.1 million for the quarter, up from $23.3 million last quarter, reflecting the full quarter consolidation of Constructive. From a capital and markets perspective, we continue to strengthen our balance sheet. During the year, we issued $198 million senior unsecured notes to extend and diversify our funding profile.

Speaker #1: Direct G&A for Constructive increased in line with higher production volumes. The full quarter impact of consolidation and also continues to include expenses associated with integration.

Speaker #1: At acquisition, we estimated Constructive to generate approximately 15% annual equity return, and our current expectations remain aligned with that target. Total consolidated Adamus G&A expenses were 25.1 million.

Speaker #1: We view these items as part of normal progression of integrating and scaling the platform. Origination activity and pipeline trends remain healthy, and as integration efforts moderate and production continue to grow, we expect a more consistent earnings contribution from Constructive.

Speaker #1: For the quarter, up from 23.3 million last quarter, reflecting the full quarter consolidation of Constructive. From a capital and markets perspective, we continue to strengthen our balance sheet.

Speaker #1: At acquisition, we estimated Constructive to generate approximately 15% annual equity return, and our current expectations remained aligned with that target. Total consolidated Adamus G&A expenses were 25.1 million.

Speaker #1: During the year, we issued 198 million senior unsecured notes to extend and diversify our funding profile. Subsequent to quarter end, we issued 90 million of nine and a quarter senior unsecured notes due 2031.

Kristine Nario-Eng: Subsequent to quarter end, we issued $90 million of 9.25% senior unsecured notes due 2031, and redeem our $100 million, 5.75% senior unsecured notes, due 2026 at par, retiring that obligation ahead of its April maturity. As a result, we now have no corporate debt maturities for the next 3 years. This provides meaningful flexibility and positions us to focus our capital on growing the investment portfolio rather than addressing near-term refinancing needs. At year-end, we maintained $206 million of available cash and approximately $420 million of total liquidity capacity, including financing available on unencumbered and under-levered assets. Our company recourse leverage ratio was 5x, and portfolio recourse leverage ratio was 4.7x, with leverage primarily concentrated in agency financing.

Speaker #1: And redeem our 100 million five and three quarter senior unsecured notes due 2026 at par, retiring that obligation ahead of its April maturity. As a result, we now have no corporate debt maturities for the next three years.

Speaker #1: During the year, we issued $198 million senior unsecured notes to extend and diversify our funding profile. Subsequent to quarter end, we issued $90 million of nine and a quarter percent senior unsecured notes due 2031.

Speaker #1: This provides meaningful flexibility and positions us to focus our capital on growing the investment portfolio, rather than addressing near-term refinancing needs. At year end, we maintained 206 million of available cash and approximately 420 million of total liquidity capacity, including financing available on unencumbered and under-levered assets.

Speaker #1: Our company recourse leverage ratio was 5 times and portfolio recourse leverage ratio was 4.7 times, with leverage primarily concentrated in agency financing. Overall, our strategic repositioning has strengthened the durability of our earnings profile and positioned the company for continued growth and recurring income.

Kristine Nario-Eng: Overall, our strategic repositioning has strengthened the durability of our earnings profile and positioned the company for continued growth in recurring income. We remain focused on disciplined execution and delivering sustainable returns for our stockholders. That concludes our prepared remarks. Operator, please open it up for questions.

Speaker #1: We remain focused on disciplined execution and delivering sustainable returns for our stockholders. That concludes our prepared remarks. Operator, please open it up for questions.

Speaker #2: Thank you. As a reminder to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again.

Operator: Thank you. As a reminder, to ask a question, please press star one, one on your telephone and wait for your name to be announced. To withdraw your question, please press star one, one again. One moment while we compile our Q&A roster. Our first question will come from the line of Doug Carter with UBS. Your line is open. Please go ahead.

Speaker #2: One moment while we compile our Q&A roster. Our first question will come from a line of Doug Harter with UBS. Your line is open.

Speaker #1: We've remained focused on disciplined execution and delivering sustainable returns for our stockholders. That concludes our prepared remarks. Operator, please open it up for questions.

Speaker #2: Please go ahead.

Speaker #3: Good morning. It's Marissa Lobo on for Doug today. Thanks for taking my question. On the pace of deployment between agency MBS and residential loans in 2026, how are you viewing the relative attractiveness of agency MBS given the significant spread tightening there to date?

Marissa Lobo: Good morning, it's Marissa Lobel on for Doug today. Thanks for taking my questions. On the pace of deployment between agency MBS and residential loans in 2026, how are you viewing the relative attractiveness of agency MBS given the significant spread tightening year to date?

Marisa Lobo: Good morning, it's Marissa Lobel on for Doug today. Thanks for taking my questions. On the pace of deployment between agency MBS and residential loans in 2026, how are you viewing the relative attractiveness of agency MBS given the significant spread tightening year to date?

Speaker #2: Thank you. As a reminder to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again.

Speaker #2: One moment while we compile our Q&A roster. Our first question will come from the line of Doug Harter with UBS. Your line is open.

Speaker #4: Yeah. So from a lever return perspective, we do see a higher return on the non-agency credit that we invest in. In particular, BPL rental.

Nicholas Mah: Yeah, so from a levered return perspective, we do see a higher return on the non-agency credit that we invest in, in particular, BPL rental. So for that particular asset class, we see somewhere in the mid to high teens type levered return, compared to agencies today, somewhere in the mid-teens type return, on a levered hedge basis. So we are still constructive on both. We still like both asset classes. We like the balance, and the diversity that having both on our portfolio gives us. As I mentioned in my earlier remarks, we do expect the agency portfolio to grow. So right now it's at 56% of equity capital. We do expect it to grow into the 60s, assuming market conditions hold.

Speaker #2: Please go ahead.

Speaker #4: So for that particular asset class, we see somewhere in the mid to high types mid to high teens type lever return. Compared to agencies today, somewhere in the mid teens type return on a levered hedge basis.

Speaker #4: Yeah, so from a levered return perspective, we do see a higher return on the non-agency credit that we invest in—in particular, BPL rental.

Speaker #4: So we are still Constructive on both. We still like both asset classes. We like the balance and the diversity that having both on our portfolio gives us.

Speaker #4: As I mentioned in my earlier remarks, we do expect the agency portfolio to grow. So right now, it's at 56% of equity capital. We do expect it to grow into the 60s, assuming market conditions hold.

Nicholas Mah: We do think that the non-agency part of our portfolio will stay about the same, but that's not because we are not increasing our BPL rental exposure. We're going to continue to increase that, but because BPL Bridge does pay down relatively quickly and we find less opportunity there, that effectively the mix within non-agencies will change, but we expect that the percentages in the non-agency side to remain relatively static. So where does the additional equity capital come from? It comes from the continued resolutions in the multifamily portfolio and other non-core strategies.

Speaker #4: So we are still Constructive on both. We still like both asset classes. We like the balance and the diversity that having both on our portfolio gives us.

Speaker #4: We do think that the agency the non-agency part of our portfolio will stay about the same, but that's not because we are not increasing our BPL rental exposure.

Speaker #4: We're going to continue to increase that. But because BPL bridge does pay down relatively quickly, and we find less opportunity there, that effectively the mix within non-agencies will change.

Speaker #4: But we expect that the percentages in the non-agency side to remain relatively static. So where does the additional equity capital come from? It comes from the continued resolutions in the multifamily portfolio and other non-core strategies.

Speaker #4: We do think that the agency the non-agency part of our portfolio will stay about the same, but that's not because we are not increasing our BPL rental exposure.

Speaker #3: That's very helpful. Thank you. And looking at the expenses related to the Constructive acquisition, how should we think about the remaining integration costs and the 2026 run rate for operating expenses related to Constructive?

Marissa Lobo: That's very helpful. Thank you. And looking at the expenses related to the Constructive acquisition, how should we think about the remaining integration costs and the 2026 run rate for operating expenses related to Constructive?

Marisa Lobo: That's very helpful. Thank you. And looking at the expenses related to the Constructive acquisition, how should we think about the remaining integration costs and the 2026 run rate for operating expenses related to Constructive?

Kristine Nario-Eng: We still see in the first quarter, partially some integration costs, you know, with, with Constructive. It's only been there for, for about six months. But in terms of G&A ratio, when you think about it, it's going to be approximately 7 to 7.5% of stockholders' equity, and really approximately 44% of that would be attributable to Constructive, with the rest really Adamas. And if you think about Constructive, roughly 40% of their G&A is variable and directly tied to origination activity. And this really provides us meaningful expense flexibility as volumes fluctuate. So, as I said, it's, it's about 7% or 7 and, and 7.5% of stockholders' equity would be our run rate.

Speaker #5: We still see in first quarter partially some integration costs. With Constructive, it's only been there for about six months. But in terms of G&A ratio, when you think about it, it's going to be approximately 7 to 7 and a half percent of stockholders' equity.

Speaker #5: And really approximately 44% of that would be attributable to Constructive, with the rest really Adamus. And if you think about Constructive, roughly 40% of their G&A is variable and directly tied to origination activity.

Speaker #5: And this really provides us meaningful expense flexibility as volumes fluctuate. So as I said, it's about 7% or 7 and a half and 7 and a half percent of stockholders' equity would be our run rate.

Speaker #5: And really, approximately 44% of that would be attributable to Constructive, with the rest really Adamus. And if you think about Constructive, roughly 40% of their G&A is variable and directly tied to origination activity.

Speaker #3: Got it. Thank you. And finally, just on that comment about the gain on sale change this quarter reflecting lower commitment valuations and the increase in loan repurchase reserves, could you expand on that?

Marissa Lobo: Got it. Thank you. And finally, just on that comment about the gain on sale, change this quarter reflecting lower, commitment valuations and the increase in loan repurchase reserves, could you expand on that? Are there, you know, what are the implications to the valuation of loans on balance sheets?

Marisa Lobo: Got it. Thank you. And finally, just on that comment about the gain on sale, change this quarter reflecting lower, commitment valuations and the increase in loan repurchase reserves, could you expand on that? Are there, you know, what are the implications to the valuation of loans on balance sheets?

Speaker #5: And this really provides us meaningful expense flexibility as volumes fluctuate. So as I said, it's about 7% or 7 and 7 and a half percent of stockholders' equity would be our run rate.

Speaker #3: Are there what are the implications to the valuation of loans on balance sheet?

Kristine Nario-Eng: ...Yeah, we think it is transitional. And let's talk about the interest rate lock valuation. It was really primarily driven by a smaller pipeline compared to last quarter and modestly lower pull-through rates, reflecting pricing conditions during the period. These changes are consistent with kind of normal quarter-to-quarter market fluctuations, and we continue to actively monitor and manage the pipeline and align it with current market conditions. In terms of repurchase reserves, we think it was prudent to increase the repurchase reserves, and it is really tied into our purchase of the 50% interest into Constructive, and Nick can go into a little bit more detail.

Speaker #5: We don't yeah, we think it is transitional. And let's talk about the interest. What rate lock commit interest rate lock valuation. It was really primarily driven by a smaller pipeline compared to last quarter.

Speaker #3: Got it. Thank you. And finally, just on that comment about the gain on sale, change this quarter reflecting lower commitment valuations and the increase in loan repurchase reserves, could you expand on that?

Speaker #5: And modestly, lower pull-through rate reflecting price and conditions during the period. These changes are consistent with kind of normal quarter to quarter market fluctuations.

Speaker #3: Are there, what are the implications to the valuation of loans on the balance sheet?

Speaker #5: And we continue to actively monitor and manage the pipeline and align it with current market conditions. In terms of repurchase reserves, we think it was prudent to increase the repurchase reserves.

Speaker #5: And it is really tied into our purchase of the 50% interest into Constructive and Nick can go into a little bit more detail.

Speaker #5: And modestly, lower pull-through rate reflecting pricing conditions during the period. These changes are consistent with kind of normal quarter to quarter market fluctuations. And we continue to actively monitor and manage the pipeline and align it with current market conditions.

Speaker #4: Yeah. We effectively coordinated the magnitude and timing of some of these repurchases. And the corresponding reserves with in collaboration with our former equity partner in the Constructive business.

Nicholas Mah: Yeah, we effectively coordinated the magnitude and timing of some of these repurchases and the corresponding reserves with, in collaboration with our former equity partner in the Constructive business. And primarily, these actions were executed in Q4 to take advantage of, you know, provisions and indemnities that were provided as part of the Constructive purchase transaction. We don't see the repurchase loan loss reserves as an extrapolation of higher loss trends or credit concerns for 2026. We feel very comfortable with the credit underwriting that we currently have in Constructive.

Speaker #5: In terms of repurchase reserves, we think it was prudent to increase the repurchase reserves. And it is really tied into our purchase of the 50% interest in Constructive, and Nick can go into a little bit more detail.

Speaker #4: And primarily, these actions were executed in the fourth quarter to take advantage of provisions and indemnities that were provided as part of the Constructive purchase transaction.

Speaker #4: We don't see the repurchase loan loss reserves as an extrapolation of higher loss trends or critical concerns for 2026. We feel very comfortable with the credit underwriting that we currently have in Constructive.

Speaker #3: Got it. Thank you very much. Thanks for taking my questions.

Marissa Lobo: Got it. Thank you very much. Thanks for taking my questions.

Marisa Lobo: Got it. Thank you very much. Thanks for taking my questions.

Speaker #4: And primarily, these actions were executed in the fourth quarter to take advantage of provisions and indemnities that were provided as part of the Constructive purchase transaction.

Speaker #2: Thank you. And one moment for our next question. Our next question will come from the line of Boyce George with KBW. Your line is open.

Operator: Thank you. One moment for our next question. Our next question will come from the line of Boyce George with KBW. Your line is open. Please go ahead.

Speaker #2: Please go ahead.

Speaker #4: We don't see the repurchase loan loss reserves as an extrapolation of higher loss trends or credit concerns for 2026. We feel very comfortable with the credit underwriting that we currently have in Constructive.

Frank Labetti: Thanks. This is actually Frank Libetti on for Boyce. Good morning, guys. I want to start with discussing about the balancing between capital, capital deployment between scale and construction originations versus increasing Agency deployment or share repurchases. Then is there like a preferred return threshold guiding that allocation going forward? Thanks.

Speaker #6: Thanks. This is actually Frank Gilabetti on for Bose. Good morning, guys. I want to start with discussing about the balancing between capital deployment between scale and construction, originations, versus increasing agency deployment or share repurchases.

Speaker #3: Got it. Thank you very much. Thanks for taking my questions.

Speaker #2: Thank you. And one moment for our next question. Our next question will come from the line of Boyce George with KBW. Your line is open.

Speaker #6: And then is there a preferred return threshold guiding that allocation going forward? Thanks.

Speaker #2: Please go ahead.

Speaker #6: Thanks. This is actually Frank Gilabetti on for Bose. Good morning, guys. I want to start with discussing the balancing between capital deployment between scale and construction originations versus increasing agency deployment or share repurchases.

Speaker #4: Yeah. Thank you for the question. So ultimately, we're focusing on mid to high teens returns on a risk-adjusted basis. Throughout the different avenues, which we deploy capital into, the interchange of that does change per quarter based on what's available in the market and different underwriting trends that we're seeing.

Jason Serrano: Yeah, thank you for the question. So, ultimately, you know, we're focusing on mid to high teens returns on a risk-adjusted basis, throughout the different avenues which we deploy capital into. You know, the interchange of that, you know, does change per quarter based on what, you know, what's available in the market and, you know, different underwriting trends that we're seeing. We, going back to Constructive, we see it as more of a capital-light model, given their wholesale origination business. You know, Nick mentioned earlier that it- we're focused on both, you know, gain on sale through selling to third parties, as well as holding on balance sheet, for our, you know, origination activity, securitization activity, which we expect one securitization a month, in this space.

Speaker #6: And then, is there a preferred return threshold guiding that allocation going forward? Thanks.

Speaker #4: We going back to Constructive, we see it as more of a capital light model, given their wholesale origination business. Nick mentioned earlier that we're focused on both gain on sale through selling to third parties, as well as holding on balance sheet for our origination activity securitization activity, which we expect one securitization a month.

Speaker #4: And different underwriting trends that we're seeing. We going back to Constructive, we see it as more of a capital light model given their wholesale origination business.

Speaker #4: In this space, but we don't expect to have a significant increase of capital allocation towards XRH, even with origination volumes that would grow. That was one of the primary focuses that we looked at Constructive many years ago.

Jason Serrano: But we don't expect to have, you know, a significant increase of capital allocation towards that strategy, even with origination volumes that would further grow. That was one of the primary focuses that we looked at, Constructive many years ago, and you know, why we were excited about their business model. It provides for flexibility on the call side, you know, keeping it flat with, you know, origination trends going up or down. So we think it'll be consistent kind of capital allocation there.

Speaker #4: Nick mentioned earlier that we're focused on both gain on sale through selling to third parties as well as holding on balance sheet. For our origination activity securitization activity, which we expect one securitization a month in this space.

Speaker #4: And why we were excited about their business model. It provides for flexibility on the call side, keeping it flat with origination trends going up or down.

Speaker #4: But we don't expect to have a significant increase of capital allocation towards that strategy, even with origination volumes that would grow. That was one of the primary focuses that we looked at constructively many years ago.

Speaker #4: So we think it'll be consistent kind of capital allocation there. And then the trends of looking at different asset classes, again, it's really we're Nick mentioned a target of 60% on agencies.

Jason Serrano: Then the trends of looking at different asset classes, again, it's really, you know, we're -- Nick mentioned a target of 60% on agencies, and that's just looking at where we see value in today's market, the interchange between BPL bridge and rental. The fact that BPL bridge, we think will be reduced on our balance sheet just due to payoffs that are happening there and a lack of opportunity that we're seeing. And on the bridge, on the rental side, you know, continuing to support efforts there from Constructive and seeing value in that space. So ultimately, you know, it really depends what the market's giving us, and we're going to make the prudent, you know, capital allocations accordingly.

Speaker #4: And that's just looking at where we see value in today's market, the interchange between BPL Bridge and rental, the fact that BPL Bridge we think will start will be reduced on our balance sheet just due to payoffs.

Speaker #4: And why we were excited about their business model. It provides for flexibility on the call side, keeping it flat with origination trends going up or down.

Speaker #4: They're happening there and a lack of opportunity that we're seeing. And on the rental side, continuing to support efforts there from Constructive and seeing value in that space.

Speaker #4: So ultimately, it really depends what the market's giving us. And we're going to make the prudent capital allocations accordingly. One follow-on comment on Constructive.

Nicholas Mah: One follow-on comment on Constructive. So we're still in the process of transition, and there are still things that we can do to more to increase volume and increase efficiencies and reduce costs that does not require capital. Like, for example, getting them better financing lines with better terms, whether it's, you know, providing our captive capital to reduce the time, the warehouse time that they have their loans under. So there's things that we can do that doesn't necessarily require additional capital, and we're actually focused on those things first, before planning to put additional capital in.

Speaker #4: So we're still in the process of transition. And there are still things that we can do to more to increase volume and increase efficiencies and reduce costs that does not require capital.

Speaker #4: They're happening there and a lack of opportunity that we're seeing. And on the rental side, continuing to support efforts there from Constructive and seeing value in that space.

Speaker #4: For example, getting them better financing lines with better terms whether it's providing our captive capital to reduce the time the warehouse time that they have their loans under.

Speaker #4: So ultimately, it really depends what the market's giving us. And we're going to make the prudent capital allocations accordingly. One follow-on comment on Constructive.

Speaker #4: So there's things that we can do that doesn't necessarily require additional capital. And we're actually focused on those things first before planning to put additional capital in.

Speaker #4: For example, getting them better financing lines with better terms, whether it's providing our captive capital to reduce the time—the warehouse time—that they have their loans under.

Speaker #6: Great. That's very helpful. And then sticking on Constructive, you just talk about the competition in the business purpose lending channel. Demand for the product is clearly very strong.

Frank Labetti: Great. That's, that's very helpful. And then sticking on Constructive, can you just talk about the competition in the business purpose lending channel? You know, demand for the product is clearly very strong. Are you seeing any new entrants in the space and any pressure on margins there?

Speaker #6: But are you seeing any new entrants in the space and any pressure on margins there?

Speaker #4: So there's things that we can do that doesn't necessarily require additional capital. And we're actually focused on those things first before planning to put additional capital in.

Speaker #4: Yeah. On the competition in DSCR loans in particular, yes. We this is a space that Constructive has been in for a while. So we've seen the ebbs and flows in terms of competition.

Nicholas Mah: Yeah, I—On the competition in DSCR loans in particular, yes, we are—we—This is a space that Constructive has been in for a while, so we have seen the ebbs and flows in terms of competition. Obviously, at this juncture, it is a relatively competitive business. There's also very strong demand for loans from institutional buyers across both non-QM as well as BPL rentals/DSCR. So, there's fortunately a strong demand there from... In terms of comp. And therefore, originators have tried to grow in that particular space. I think from our perspective, Constructive has always been a top-tier player. They're very long-term relationships. They're navigating the competition very well....

Speaker #6: Great. That's very helpful. And then sticking on Constructive, can you just talk about the competition in the business purpose lending channel? Demand for the product is clearly very strong.

Speaker #4: Obviously, at this juncture, it is a relatively competitive business. There's also very strong demand for loans from institutional buyers across both non-QM as well as BPL rental/DSCR.

Speaker #6: Are you seeing any new entrants in the space and any pressure on margins there?

Speaker #4: Yeah. On the competition in DSCR loans in particular, yes, we this is a space that Constructive has been in for a while. So we've seen the ebbs and flows in terms of competition.

Speaker #4: So there's fortunately a strong demand there in terms of and therefore, originators have tried to grow in that particular space. I think from our perspective, Constructive has always been a top-tier player.

Speaker #4: They have very long-term relationships. They're navigating the competition very well. And I think one of the things that we are seeing is some of the larger non-QM originators having a higher percentage allocation of originations into BPL rental.

Nicholas Mah: I think one of the things that we are seeing is some of the larger non-QM originators having a higher percentage allocation of originations into BPL rental. That is a trend that we think will continue. In some cases, we have also or Constructive has partnered with some of these larger entities to grow volume as well. So the market continues to evolve and change. Fortunately, there's strong demand, but the competition is something that we've been mindful of and navigating very well.

Speaker #4: So there's fortunately a strong demand there, and therefore, originators have tried to grow in that particular space. I think from our perspective, Constructive has always been a top-tier player.

Speaker #4: That is a trend that we think will continue. In some cases, we have also. Or Constructive has partnered with some of these larger entities to grow volume as well.

Speaker #4: So the market continues to evolve and change. Fortunately, there's strong demand. But the competition is something that we have been mindful of and navigating very well.

Speaker #6: Great. Thank you. And just one more if I can. Just if you guys did you guys provide an update on book value quarter date?

Tim D'Agostino: Great. Thank you. And just one more if I can. Just if you guys did provide an update on book value quarter to date?

Frank Labetti: Great. Thank you. And just one more if I can. Just if you guys did provide an update on book value quarter to date?

Speaker #4: That is a trend that we think will continue. In some cases, we have also. Or Constructive has partnered with some of these larger entities to grow volume as well.

Nicholas Mah: Yeah. So in Jason's remarks, he mentioned that book value, adjusted book value is up somewhere between 3% to 4%. That's for our quarter to date.

Speaker #4: Yeah. So in Jason's remarks, he mentioned that book value adjusted book value is up somewhere between 3% to 4%. That's what our quarter to date.

Nicholas Mah: Yeah. So in Jason's remarks, he mentioned that book value, adjusted book value is up somewhere between 3% to 4%. That's for our quarter to date.

Speaker #4: So, the market continues to evolve and change. Fortunately, there's strong demand, but the competition is something that we have been mindful of and navigating very well.

Speaker #6: Okay. Great. Thank you, guys.

Tim D'Agostino: Okay, great. Thank you, guys.

Frank Labetti: Okay, great. Thank you, guys.

Speaker #2: Thank you. And one moment for our next question. Our next question comes from the line of Matthew Erdner with Jones Trading. Your line is open.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Matthew Ertner with JonesTrading. Your line is open. Please go ahead.

Speaker #6: Great. Thank you. And just one more if I can. Just if you guys did you guys provide an update on book value quarter date?

Speaker #2: Please go ahead.

Speaker #4: Hey, good morning, guys. Thanks for taking the question. There's been a lot of talk about institutionals or I guess institutions being banned kind of from that rental space.

Matthew Erdner: Hey, good morning, guys. Thanks for taking the question. You know, there's been a lot of talk about institutionals, or I guess, institutions being banned kind of from that rental space. Could you talk about just the profile of borrower that you guys have? You know, and if that were to occur, what impact it would have?

Speaker #4: Yeah. So, in Jason's remarks, he mentioned that book value—adjusted book value—is up somewhere between 3% to 4% thus far, quarter to date.

Speaker #4: Could you talk about just the profile of borrower that you guys have and if that were to occur, what impact it would have?

Speaker #6: Okay. Great. Thank you, guys.

Speaker #2: Thank you. And one moment for our next question. Our next question comes from the line of Matthew Erdner with JonesTrading. Your line is open.

Speaker #7: Sure. We think that if this policy ultimately goes through, that it will be positive for Constructive's business. So Constructive originates loans really to individual investors.

Nicholas Mah: Sure. Well, we think that if this policy ultimately goes through, that it will be positive for Constructive's business. So Constructive originates loans really to individual investors, not to institutional investors. Every single one of Constructive's borrowers, of loans originated in 2025, owns less than 80 single-family properties, and the average is significantly lower than that. So institutional investors own SFR properties by the thousands. So we don't have a lot of details yet, but in the White House executive order, the policy is really looking to limit purchases, and I quote, "From, you know, Wall Street investors and large institutional investors." So the definitions of which are forthcoming, but these are not necessarily descriptors of Constructive's client base. So, you know, that overall, I think that if there was a ban on institutions owning SFR, it would be positive for Constructive.

Speaker #2: Please go ahead.

Speaker #4: Hey, good morning, guys. Thanks for taking the question. There's been a lot of talk about institutionals, or I guess institutions, being banned kind of from that rental space.

Speaker #7: Not to institutional investors. Every single one of Constructive's borrowers of loans originate in 2025, owns less than 80 single-family properties and the average is significantly lower than that.

Speaker #4: Could you talk about just the profile of borrower that you guys have and if that were to occur, what impact it would have?

Speaker #7: And institutional investors own SFR properties by the thousands. So we don't have a lot of details yet. But in the White House executive order, the policy is really looking to limit purchases and I quote from Wall Street investors and large institutional investors.

Speaker #7: Sure. We think that if this policy ultimately goes through, that it will be positive for Constructive's business. So Constructive originates loans really to individual investors.

Speaker #7: Not to institutional investors. Every single one of Constructive's borrowers of loans originated in 2025, owns less than 80 single-family properties and the average is significantly lower than that.

Speaker #7: So the definitions of which are forthcoming. But these are not necessarily descriptors of Constructive's client base. So overall, I think if there was a ban in institutions owning SFR, it would be positive for Constructive.

Speaker #7: And institutional investors own SFR properties by the thousands. So, we don't have a lot of details yet. But in the White House executive order, the policy is really looking to limit purchases, and I quote, from Wall Street investors and large institutional investors.

Speaker #7: It should increase the supply of homes and transactions and reduce the demand for homes that are borrowers targeted.

Nicholas Mah: It should increase the supply of homes and transactions, and reduce the demand for homes that are borrower targeted.

Speaker #6: Got it. Got it. That's helpful. And then apologies if I missed this on the last question. But could you kind of talk about share repurchases?

Matthew Erdner: Got it. Got it. That's helpful. And then apologies if I missed this on the last question, but could you kind of talk about share repurchases, you know, if you did any during the quarter? I don't think you did, and how you're viewing that going forward.

Speaker #6: If you did any during the quarter, I don't think you did, and how you're viewing that going forward?

Speaker #4: Yeah. So the way we look at share repurchases is just as it's different capital allocation relative to the opportunities we see in the market as a whole.

Nicholas Mah: Yeah. So, you know, the way we look at share repurchases is, you know, just as a different capital allocation relative to the opportunities we see in the market as a whole. We did not repurchase shares in the quarter, in the fourth quarter. We do look at, you know, where our price to book is, and the accretive value of actually utilizing capital for that. You know, in share repurchases, you know, it's a permanent capital reduction, you know, in retiring those shares. We don't get the ability to hold in Treasury and try to issue later.

Speaker #7: It should increase the supply of homes and transactions and reduce the demand for homes that are borrowers' target.

Speaker #4: We did not repurchase shares in the quarter in the fourth quarter. We do look at where our price to book is and the creative value of actually utilizing capital for that in share repurchases.

Speaker #6: Got it. Got it. That's helpful. And then apologies if I missed this on the last question. But could you kind of talk about share repurchases?

Speaker #6: If you did any during the quarter, I don't think you did, and how you're viewing that going forward?

Speaker #4: It's a permanent capital reduction. And retiring those shares we don't get the ability to hold in treasury and try to issue later. So what we have to do is just we focus on whether or not the capital that we have allocated to and budgeted for our investment programs is a creative relative to using that capital in permanent deletion of that capital related to those share repurchases.

Speaker #4: Yeah. So the way we look at share repurchases is just as a different capital allocation relative to the opportunities we see in the market as a whole.

Nicholas Mah: So, you know, what we have to do is just we focus on whether or not, you know, the capital that we have allocated to and budgeted for our investment programs, you know, is accretive relative to, you know, using that capital and permanent deletion of that capital related to those share repurchases. So it's something that we consistently look at, and we monitor, we throw in our models as it relates to core capital allocations and, you know, we will continue doing that. You know, we have in previous quarters repurchased shares as the market, you know, provided some opportunities there, and we'll continue to look at that going forward.

Speaker #4: So it's something that we consistently look at. And we monitor. We throw in our models as it relates to core capital allocations and we will continue doing that.

Speaker #4: And we have in previous quarters repurchased shares as the market provided some opportunities there. And we'll continue to look at that going forward.

Speaker #6: Got it. That's helpful. And then last one for me. How are you guys looking at agency leverage given that we've kind of moved into a tighter spread range?

Matthew Erdner: Got it. That, that's helpful. And then last one for me. How are you guys looking at agency leverage, given that, you know, we've kind of moved into a tighter spread range? Obviously, there's the GSE backstop, you know, I guess with their loan purchases. Just how are you guys thinking about leverage?

Speaker #4: So it's something that we consistently look at. And we monitor. We throw in our models as it relates to core capital allocations and we will continue doing that.

Speaker #6: Obviously, there's the GSE backstop. I guess with their loan purchases, just how are you guys thinking about leverage?

Speaker #4: We have in previous quarters repurchased shares as the market provided some opportunities there. And we'll continue to look at that going forward.

Speaker #7: Yeah. So in the quarter leverage declined slightly. Right now, it's about 7.7 times. Historically, we have run leverage up into 8 and a half times leverage.

Nicholas Mah: Yeah. So in the quarter, leverage declined slightly. Right now, it's about 7.7 times. Historically, we have run leverage up into, you know, 8 to 8.5 times leverage. For now, we are probably gonna be trending on the lower end, so closer to the 7.7 times, but depending on market conditions, we could go higher.

Speaker #6: Got it. That's helpful. And then last one for me. How are you guys looking at agency leverage given that we've kind of moved into a tighter spread range?

Speaker #7: For now, we are probably going to be trending on the lower end so closer to the 7.7 times. But depending on how our market conditions be, we could go higher.

Speaker #6: Obviously, there's the GSE backstop. I guess with their loan purchases, just how are you guys thinking about leverage?

Speaker #6: Great. Thank you, guys.

Matthew Erdner: Great. Thank you, guys.

Speaker #7: Yeah. So in the quarter leverage declined slightly. Right now, it's about 7.7 times. Historically, we have run leverage up into 8 and a half times leverage.

Speaker #2: Thank you. And one moment for our next question. Our next question will be from the line of Timothy D'Agostino with Equity Research. Your line is open.

Operator: Thank you. One moment for our next question. Our next question will be from the line of Timothy D'Agostino with Equity Research. Your line is open. Please go ahead.

Speaker #2: Please go ahead.

Speaker #7: For now, we are probably going to be trending on the lower end so closer to the 7.7 times. But depending on how our market conditions be, we could go higher.

Speaker #6: Yeah. I think you've taken the question. And good morning. With the comments on 60 to 70 percent of equity capital being agency and potentially seeing a decline in BPL bridge in 2026, I was just wondering the total investment portfolio size currently, is that 10 and a half billion?

Tim D'Agostino: Yeah. Thank you for taking the question. Good morning. With the comments on, you know, 60 to 70% of equity capital being agency and, you know, potentially seeing a decline in BPL bridge in 2026, I was just wondering, the total investment portfolio size currently is at $10.5 billion. Do you have, like, a target size you or a goal you're, you're trying to reach? Or do you have any near-term, like, percentage increases? Just thinking about, you know, what you're striving for in terms of the total portfolio size, maybe at the end of 2026 or at the end of 2027. Thank you.

Speaker #6: Great. Thank you, guys.

Speaker #2: Thank you. And one moment for our next question. Our next question will be from the line of Timothy Dagostino with Equity Research. Your line is open.

Speaker #6: Do you have a target size you or a goal you're trying to reach? Or do you have any near-term percentage increases? Just thinking about what you're striving for in terms of a total portfolio size, maybe at the end of '26 or at the end of 2027.

Speaker #2: Please go ahead.

Speaker #6: Thank you.

Speaker #4: Yeah. So the goal is to maximize our total return within our portfolio. I mean, that's the core that's where we start with looking at capital allocation.

Nicholas Mah: Yeah. So, so the goal is to maximize, you know, our total return within our portfolio. I mean, that's, that's the core, that's where we start, with looking at capital allocation. So in doing so, you know, when the, when the market, you know, has different moves and whether it's on credit or an- an agency, we, we will look to, to change our capital allocation relative to those two different asset classes. So there is not a target that we, you know, are focused on reaching as a sense of just reaching a target versus maximizing, you know, our,

Speaker #6: Do you have a target size or a goal you're trying to reach? Or do you have any near-term percentage increases? Just thinking about what you're striving for in terms of total portfolio size, maybe at the end of '26 or at the end of 2027.

Speaker #4: So in doing so, when the market has different moves and whether it's on credit or an agency, we will look to change our capital allocation relative to those two different asset classes.

Speaker #4: So there is not a target that we are focused on reaching as a sense of just reaching a target versus maximizing our recurring earnings that we have in our portfolio.

Speaker #6: Thank you.

Speaker #4: Yeah, so the goal is to maximize our total return within our portfolio. I mean, that's the core—that's where we start with looking at capital allocation.

Jason Serrano: ... our recurring earnings that we have in our portfolio. The comments that Nick made earlier on, you know, the targets around 60% is based on what we see the market giving us today and the different roll-offs of non-core strategies we have in our balance sheet. So, yeah, we don't have a, you know, a capital allocation model that focuses on either investment portfolio size or a certain percent that we need to be in either strategy. It's really where we see the best risk-adjusted returns in the market and how to maximize, you know, our earnings potential.

Speaker #4: The comments that Nick made earlier on the targets around 60% is based on what we see the market giving us today and the different rolloffs of non-core strategies that we have in our balance sheet.

Speaker #4: So in doing so, when the market has different moves and whether it's on credit or in agency, we will look to change our capital allocation relative to those two different asset classes.

Speaker #4: So yeah, we don't have a capital allocation model that focuses on either investment portfolio size or a certain percent that we need to be in either strategy.

Speaker #4: So, there is not a target that we are focused on reaching in the sense of just reaching a target versus maximizing our recurring earnings that we have in our portfolio.

Speaker #4: It's really where we see the best risk-adjusted returns in the market and how to maximize our earnings potential.

Speaker #4: The comments that Nick made earlier on the targets around 60% is based on what we see the market giving us today and the different rolloffs of non-core strategies we have in our balance sheet.

Speaker #6: Okay. Great. Thank you so much. And then just as a second question, regarding available cash, it's probably average maybe around 170 million over the trailing five quarters.

Tim D'Agostino: Okay, great. Thank you so much. And then, as a second question, regarding available cash, you know, you probably average maybe around, like, $170 million of trailing five quarters, and obviously, at the year-end, you have $206 million available cash. I guess, could you just provide maybe an overview of how you plan to allocate that cash, whether you want to continue to hold stockpile, if you're going, if you're just seeing kind of rotation capital? I guess, just any sort of color on the available cash at year-end would be great, and how you plan to use it. Thank you.

Speaker #4: So yeah, we don't have a capital allocation model that focuses on either investment portfolio size or a certain percent that we need to be in either strategy.

Speaker #6: And obviously, at the year-end, you have 206 million available cash. I guess could you just provide maybe an overview of how you plan to allocate that cash, whether you want to continue to hold stockpile, if you're going if you're just seeing kind of rotation of capital?

Speaker #4: It's really where we see the best risk-adjusted returns in the market and how to maximize our earnings potential.

Speaker #6: Okay, great. Thank you so much. And then, just as a second question, regarding available cash, it's probably averaged maybe around $170 million over the trailing five quarters.

Speaker #6: I guess just any sort of color on the available cash at year-end would be great and how you plan to use it. Thank you.

Speaker #4: Yeah. We as the agency strategy, in spreads, tighten into year-end. We it did take away some of our expectations of what we could grow our portfolio in the beginning of that quarter.

Jason Serrano: Yeah, you know, we as the Agency strategy and spreads tighten into year-end, you know, it did take away some of our expectations of what we could grow our portfolio in the beginning of that quarter. So we ended up the quarter with a little bit more cash than we would have expected, which is partially the reason, or the reason why we ended up maturing our 5 3/4 notes due April 2026. And we just saw an opportunity there, given the cash allocation that we had, and the fact that there was a near-term maturity coming up and utilize the capital in that way. But I think overall, you know, the opportunity for us is, you know, continued deployment in the two areas.

Speaker #6: And obviously, at the year end, you have $206 million available cash. I guess, could you just provide maybe an overview of how you plan to allocate that cash—whether you want to continue to hold a stockpile, if you're just seeing kind of a rotation of capital?

Speaker #4: So we ended up the quarter with a little bit more cash than we would have expected. Which is partially the reason or the reason why we ended up maturing our five and three-quarter note through April 2026.

Speaker #6: I guess just any sort of color on the available cash at year-end would be great, and how you plan to use it. Thank you.

Speaker #4: Yeah. We, as the agency strategy, saw spreads tighten into year end. It did take away some of our expectations of what we could grow our portfolio at in the beginning of that quarter.

Speaker #4: And we just saw an opportunity there given the cash allocation that we had. And the fact that there was a near-term maturity coming up.

Speaker #4: And utilize the capital in that way. But I think overall, the opportunity for us is to continue deployment in the two areas. We talked about a capital light model and on the constructive side and then looking for opportunities within agency.

Speaker #4: So we ended up the quarter with a little bit more cash than we would have expected. Which is partially the reason why we ended up maturing our five and three-quarter note through April 2026.

Jason Serrano: We talked about a capital-light model on the Constructive side and then looking for opportunities within agency. So, you know, to the extent that the, you know, the market, you know, wind down on the agency side, we expect to have further deployment there, and looking for more opportunistic trades in the market as a whole, versus, you know, kind of a scheduled deployment.

Speaker #4: So to the extent that the market winds down on the agency side, we expect to have further deployment there. And looking for more opportunistic trades in the market as a whole.

Speaker #4: And we just saw an opportunity there, given the cash allocation that we had and the fact that there was a near-term maturity coming up.

Speaker #4: And utilize the capital in that way. But I think overall, the opportunity for us is to continue deployment into areas we talked about at capital light model and on the constructive side and then looking for opportunities within agency.

Speaker #4: Versus kind of a scheduled deployment.

Speaker #6: Okay. Got it. Thank you for taking the questions today.

Tim D'Agostino: Okay, got it. Thank you for taking the questions today.

Speaker #2: Thank you. And one moment for our next question. Hi. I'm showing no further questions at this time. And I would now like to hand the conference back over to Jason Serrano for closing remarks.

Operator: Thank you. One moment for our next question. I am showing no further questions at this time, and I would now like to hand the conference back over to Jason Serrano for closing remarks.

Speaker #4: So, to the extent that the market winds down on the agency side, we expect to have further deployment there, and are looking for more opportunistic trades in the market as a whole.

Speaker #4: Versus kind of a scheduled deployment.

Speaker #4: Yes. We appreciate your continued support and look forward to discussing our first quarter results in April. Have a great day.

Jason Serrano: Yes, we appreciate your continued support and look forward to discussing our first quarter results in April. Have a great day.

Speaker #6: Okay. Got it. Thank you for taking the questions today.

Operator: This concludes today's conference call. Thank you for participating, and you may now disconnect. Everyone, have a great day.

Speaker #2: Our next question. Hi. I'm showing no further questions at this time, and I would now like to hand the conference back over to Jason Serrano for closing remarks.

Speaker #4: Yes. We appreciate your continued support and look forward to discussing our first quarter results in April. Have a great day.

Speaker #2: This concludes today's conference call. Thank you for participating. And you may now disconnect. Everyone, have a great day.

Operator: Please enter your dial-in PIN and press pound when finished. The conference is not yet available. Please reconnect closer to the scheduled start time.

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